Business Segment Information

FHN has four business segments: regional banking, fixed income, corporate, and non-strategic. The regional banking segment offers financial products and services, including traditional lending and deposit taking, to consumer and commercial customers in Tennessee, North Carolina, South Carolina, Florida and other selected markets. Regional banking also provides investments, financial planning, trust services and asset management, mortgage banking, credit card, and cash management. Additionally, the regional banking segment includes correspondent banking which provides credit, depository, and other banking related services to other financial institutions nationally. The fixed income segment consists of fixed income securities sales, trading, and strategies for institutional clients in the U.S. and abroad, as well as loan sales, portfolio advisory services, and derivative sales. The corporate segment consists of unallocated corporate expenses, expense on subordinated debt issuances, bank-owned life insurance, unallocated interest income associated with excess equity, net impact of raising incremental capital, revenue and expense associated with deferred compensation plans, funds management, tax credit investment activities, derivative valuation adjustments related to prior sales of Visa Class B shares, gain/(loss) on extinguishment of debt, and acquisition- and integration-related costs. The non-strategic segment consists of the wind-down national consumer lending activities, legacy mortgage banking elements including servicing fees, and the associated ancillary revenues and expenses related to these businesses. Non-strategic also includes the wind-down trust preferred loan portfolio and exited businesses.

Periodically, FHN adapts its segments to reflect managerial or strategic changes. FHN may also modify its methodology of allocating expenses and equity among segments which could change historical segment results. Business segment revenue, expense, asset, and equity levels reflect those which are specifically identifiable or which are allocated based on an internal allocation method. Because the allocations are based on internally developed assignments and allocations, to an extent they are subjective. Generally, all assignments and allocations have been consistently applied for all periods presented. The following table reflects the amounts of consolidated revenue, expense, tax, and average assets, as well as, depreciation and amortization expense and expenditures for long lived assets for each segment for the years ended December 31:




(Dollars in thousands)	2017		2016		2015
Consolidated
Net interest income	$	842,314	$	729,084	$	653,720
Provision/(provision credit) for loan losses	—		11,000		9,000
Noninterest income	490,219		552,441		517,325
Noninterest expense	1,023,661		925,204		1,053,791
Income/(loss) before income taxes	308,872		345,321		108,254
Provision/(benefit) for income taxes	131,892		106,810		10,941
Net income/(loss)	$	176,980	$	238,511	$	97,313
Average assets	$	29,924,813	$	27,427,227	$	25,635,975
Depreciation and amortization	$	70,924	$	64,673	$	60,743
Expenditures for long-lived assets	287,642		62,554		43,514




(Dollars in thousands)	2017			2016			2015
Regional Banking
Net interest income	$	848,952		$	741,852		$	655,152
Provision/(provision credit) for loan losses	21,647			38,887			34,545
Noninterest income	258,609			249,003			251,586
Noninterest expense	629,773			615,821			562,799
Income/(loss) before income taxes	456,141			336,147			309,394
Provision/(benefit) for income taxes	162,985			120,100			110,349
Net income/(loss)	$	293,156		$	216,047		$	199,045
Average assets	$	19,621,764		$	17,143,464		$	14,932,207
Depreciation and amortization	$	43,255		$	39,177		$	37,997
Expenditures for long-lived assets	276,012			51,354			37,367
Fixed Income
Net interest income	$	18,010		$	10,765		$	15,517
Noninterest income	217,077			269,339			231,314
Noninterest expense	210,937			229,576			220,149
Income/(loss) before income taxes	24,150			50,528			26,682
Provision/(benefit) for income taxes	7,919			18,070			8,999
Net income/(loss)	$	16,231		$	32,458		$	17,683
Average assets	$	2,544,842		$	2,365,661		$	2,370,355
Depreciation and amortization	$	9,026		$	5,981		$	6,108
Expenditures for long-lived assets	2,106			2,099			1,706
Corporate
Net interest income/(expense)	$	(58,915	)	$	(65,902	)	$	(71,680	)
Noninterest income (a)	8,926			20,436			23,331
Noninterest expense	139,390			58,913			57,830
Income/(loss) before income taxes	(189,379		)	(104,379		)	(106,179		)
Provision/(benefit) for income taxes	(45,922		)	(55,777		)	(80,085		)
Net income/(loss)	$	(143,457	)	$	(48,602	)	$	(26,094	)
Average assets	$	6,278,281		$	6,030,313		$	6,001,168
Depreciation and amortization	$	18,249		$	19,078		$	16,054
Expenditures for long-lived assets	9,383			8,946			3,971
Non-Strategic
Net interest income	$	34,267		$	42,369		$	54,731
Provision/(provision credit) for loan losses	(21,647		)	(27,887		)	(25,545		)
Noninterest income	5,607			13,663			11,094
Noninterest expense	43,561			20,894			213,013
Income/(loss) before income taxes	17,960			63,025			(121,643		)
Provision/(benefit) for income taxes	6,910			24,417			(28,322		)
Net income/(loss)	$	11,050		$	38,608		$	(93,321	)
Average assets	$	1,479,926		$	1,887,789		$	2,332,245
Depreciation and amortization	$	394		$	437		$	584
Expenditures for long-lived assets	141			155			470

Certain previously reported amounts have been reclassified to agree with current presentation.

(a) 2017 includes a $14.3 million pre-tax loss from the repurchase of equity securities previously included in a financing transaction.