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Fair Value of Assets and Liabilities (Tables)
12 Months Ended
Dec. 31, 2018
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured on Recurring Basis
The following table presents the balance of assets and liabilities measured at fair value on a recurring basis as of December 31, 2018: 
 
 
December 31, 2018
(Dollars in thousands)
 
Level 1
 
Level 2
 
Level 3
 
Total
Trading securities—fixed income:
 
 
 
 
 
 
 
 
U.S. treasuries
 
$

 
$
169,799

 
$

 
$
169,799

Government agency issued MBS
 

 
133,373

 

 
133,373

Government agency issued CMO
 

 
330,456

 

 
330,456

Other U.S. government agencies
 

 
76,733

 

 
76,733

States and municipalities
 

 
54,234

 

 
54,234

Corporate and other debt
 

 
682,068

 

 
682,068

Equity, mutual funds, and other
 

 
(19
)
 

 
(19
)
Total trading securities—fixed income
 

 
1,446,644

 

 
1,446,644

Trading securities—mortgage banking
 

 

 
1,524

 
1,524

Loans held-for-sale (elected fair value)
 

 

 
16,273

 
16,273

Securities available-for-sale:
 
 
 
 
 
 
 
 
U.S. treasuries
 

 
98

 

 
98

Government agency issued MBS
 

 
2,420,106

 

 
2,420,106

Government agency issued CMO
 

 
1,958,695

 

 
1,958,695

Other U.S. government agencies
 

 
149,786

 

 
149,786

States and municipalities
 

 
32,573

 

 
32,573

Corporate and other debt
 

 
55,310

 

 
55,310

Interest-Only Strip (elected fair value)
 

 

 
9,902

 
9,902

Total securities available-for-sale
 

 
4,616,568

 
9,902

 
4,626,470

Other assets:
 
 
 
 
 
 
 
 
Deferred compensation mutual funds
 
37,771

 

 

 
37,771

Equity, mutual funds, and other
 
22,248

 

 

 
22,248

Derivatives, forwards and futures
 
28,826

 

 

 
28,826

Derivatives, interest rate contracts
 

 
52,214

 

 
52,214

Derivatives, other
 

 
435

 

 
435

Total other assets
 
88,845

 
52,649

 

 
141,494

Total assets
 
$
88,845

 
$
6,115,861

 
$
27,699

 
$
6,232,405

Trading liabilities—fixed income:
 
 
 
 
 
 
 
 
U.S. treasuries
 
$

 
$
207,739

 
$

 
$
207,739

Other U.S. government agencies
 

 
98

 

 
98

Corporates and other debt
 

 
127,543

 

 
127,543

Total trading liabilities—fixed income
 

 
335,380

 

 
335,380

Other liabilities:
 
 
 
 
 
 
 
 
Derivatives, forwards and futures
 
30,236

 

 

 
30,236

Derivatives, interest rate contracts
 

 
71,853

 

 
71,853

Derivatives, other
 

 
84

 
31,540

 
31,624

Total other liabilities
 
30,236

 
71,937

 
31,540

 
133,713

Total liabilities
 
$
30,236

 
$
407,317

 
$
31,540

 
$
469,093




The following table presents the balance of assets and liabilities measured at fair value on a recurring basis as of December 31, 2017: 
 
 
December 31, 2017
(Dollars in thousands)
 
Level 1
 
Level 2
 
Level 3
 
Total
Trading securities—fixed income:
 
 
 
 
 
 
 
 
U.S. treasuries
 
$

 
$
128,995

 
$

 
$
128,995

Government agency issued MBS
 

 
227,038

 

 
227,038

Government agency issued CMO
 

 
275,014

 

 
275,014

Other U.S. government agencies
 

 
54,699

 

 
54,699

States and municipalities
 

 
34,573

 

 
34,573

Corporate and other debt
 

 
693,877

 

 
693,877

Equity, mutual funds, and other
 

 
(2
)
 

 
(2
)
Total trading securities—fixed income
 

 
1,414,194

 

 
1,414,194

Trading securities—mortgage banking
 

 

 
2,151

 
2,151

Loans held-for-sale
 

 
1,955

 
18,926

 
20,881

Securities available-for-sale:
 
 
 
 
 
 
 
 
U.S. treasuries
 

 
99

 

 
99

Government agency issued MBS
 

 
2,577,376

 

 
2,577,376

Government agency issued CMO
 

 
2,269,858

 

 
2,269,858

Corporates and other debt
 

 
55,782

 

 
55,782

Interest-only strips
 

 

 
1,270

 
1,270

Equity, mutual funds, and other
 
27,017

 

 

 
27,017

Total securities available-for-sale
 
27,017

 
4,903,115

 
1,270

 
4,931,402

Other assets:
 


 
 
 
 
 
 
Deferred compensation assets
 
39,822

 

 

 
39,822

Derivatives, forwards and futures
 
10,161

 

 

 
10,161

Derivatives, interest rate contracts
 

 
71,473

 

 
71,473

Total other assets
 
49,983

 
71,473

 

 
121,456

Total assets
 
$
77,000

 
$
6,390,737

 
$
22,347

 
$
6,490,084

Trading liabilities—fixed income:
 
 
 
 
 
 
 
 
U.S. treasuries
 
$

 
$
506,679

 
$

 
$
506,679

Corporates and other debt
 

 
131,836

 

 
131,836

Total trading liabilities—fixed income
 

 
638,515

 

 
638,515

Other liabilities:
 
 
 
 
 
 
 
 
Derivatives, forwards and futures
 
9,535

 

 

 
9,535

Derivatives, interest rate contracts
 

 
69,842

 

 
69,842

Derivatives, other
 

 
39

 
5,645

 
5,684

Total other liabilities
 
9,535

 
69,881

 
5,645

 
85,061

Total liabilities
 
$
9,535

 
$
708,396

 
$
5,645

 
$
723,576

Summary of Changes in Level 3 Assets Measured At Fair Value
Changes in Recurring Level 3 Fair Value Measurements
The changes in Level 3 assets and liabilities measured at fair value for the years ended December 31, 2018, 2017 and 2016 on a recurring basis are summarized as follows: 
 
 
Year Ended December 31, 2018
 
(Dollars in thousands)
 
Trading
securities
 
Interest-only strips- AFS
 
Loans held-
for-sale
 
Net  derivative
liabilities
 
Balance on January 1, 2018
 
$
2,151

 
$
1,270

 
$
18,926

 
$
(5,645
)
 
Total net gains/(losses) included in:
 
 
 

 
 
 
 
 
Net income
 
173

 
(398
)
 
1,239

 
(4,677
)
 
Purchases
 

 

 
62

 
(28,100
)
(e) 
Sales
 

 
(16,840
)
 

 

 
Settlements
 
(800
)
 

 
(3,598
)
 
6,882

 
Net transfers into/(out of) Level 3
 

 
25,870

(b)
(356
)
(d) 

 
Balance on December 31, 2018
 
$
1,524

 
$
9,902

 
$
16,273

 
$
(31,540
)
 
Net unrealized gains/(losses) included in net income
 
$
6

(a)
$
(1,025
)
(c)
$
1,239

(a)
$
(4,677
)
(f) 
 
 
 
Year Ended December 31, 2017
 
(Dollars in thousands)
 
Trading
securities
 
Interest-only strips- AFS
 
Loans held-
for-sale
 
Net  derivative
liabilities
 
Balance on January 1, 2017
 
$
2,573

 
$

 
$
21,924

 
$
(6,245
)
 
Total net gains/(losses) included in:
 
 
 
 
 
 
 
 
 
Net income
 
448

 
1,021

 
1,547

 
(596
)
 
Purchases
 

 
1,413

 
168

 

 
Sales
 
(5
)
 
(11,431
)
 

 

 
Settlements
 
(865
)
 

 
(4,346
)
 
1,196

 
Net transfers into/(out of) Level 3
 

 
10,267

(b)
(367
)
(d) 

 
Balance on December 31, 2017
 
$
2,151

 
$
1,270

 
$
18,926

 
$
(5,645
)
 
Net unrealized gains/(losses) included in net income
 
$
303

(a)
$
(171
)
(c)
$
1,547

(a)
$
(596
)
(f) 

 
 
Year Ended December 31, 2016
 
(Dollars in thousands)
 
Trading
securities
 
Loans  held-for-sale
 
Securities
available-
for-sale
 
Mortgage
servicing
rights, net
 
Net  derivative
liabilities
 
Balance on January 1, 2016
 
$
4,377

 
$
27,418

 
$
1,500

 
$
1,841

 
$
(4,810
)
 
Total net gains/(losses) included in:
 
 
 
 
 
 
 
 
 
 
 
Net income
 
604

 
3,380

 

 
31

 
(2,634
)
 
Purchases
 

 
706

 

 

 

 
Sales
 

 

 

 
(205
)
 

 
Settlements
 
(2,408
)
 
(6,264
)
 
(1,500
)
 
(682
)
 
1,199

 
Net transfers into/(out of) Level 3
 

 
(3,316
)
(d) 

 

 

 
Balance on December 31, 2016
 
$
2,573

 
$
21,924

 
$

 
$
985

 
$
(6,245
)
 
Net unrealized gains/(losses) included in net income
 
$
159

(a) 
$
3,380

(a) 
$

 
$

 
$
(2,634
)
(f) 
(a)
Primarily included in mortgage banking income on the Consolidated Statements of Income.
(b)
Transfers into interest-only strips - AFS level 3 measured on a recurring basis reflect movements from loans held-for-sale (Level 2 nonrecurring).
(c)
Primarily included in fixed income on the Consolidated Statements of Income.
(d)
Transfers out of loans held-for-sale level 3 measured on a recurring basis generally reflect movements into OREO (level 3 nonrecurring).
(e)
Increase related to newly executed Visa-related derivatives, see Note 22-Derivatives.
(f)
Included in Other expense.
Summary of Changes in Level 3 Net Derivative Asset (Liability) Measured at Fair Value
Changes in Recurring Level 3 Fair Value Measurements
The changes in Level 3 assets and liabilities measured at fair value for the years ended December 31, 2018, 2017 and 2016 on a recurring basis are summarized as follows: 
 
 
Year Ended December 31, 2018
 
(Dollars in thousands)
 
Trading
securities
 
Interest-only strips- AFS
 
Loans held-
for-sale
 
Net  derivative
liabilities
 
Balance on January 1, 2018
 
$
2,151

 
$
1,270

 
$
18,926

 
$
(5,645
)
 
Total net gains/(losses) included in:
 
 
 

 
 
 
 
 
Net income
 
173

 
(398
)
 
1,239

 
(4,677
)
 
Purchases
 

 

 
62

 
(28,100
)
(e) 
Sales
 

 
(16,840
)
 

 

 
Settlements
 
(800
)
 

 
(3,598
)
 
6,882

 
Net transfers into/(out of) Level 3
 

 
25,870

(b)
(356
)
(d) 

 
Balance on December 31, 2018
 
$
1,524

 
$
9,902

 
$
16,273

 
$
(31,540
)
 
Net unrealized gains/(losses) included in net income
 
$
6

(a)
$
(1,025
)
(c)
$
1,239

(a)
$
(4,677
)
(f) 
 
 
 
Year Ended December 31, 2017
 
(Dollars in thousands)
 
Trading
securities
 
Interest-only strips- AFS
 
Loans held-
for-sale
 
Net  derivative
liabilities
 
Balance on January 1, 2017
 
$
2,573

 
$

 
$
21,924

 
$
(6,245
)
 
Total net gains/(losses) included in:
 
 
 
 
 
 
 
 
 
Net income
 
448

 
1,021

 
1,547

 
(596
)
 
Purchases
 

 
1,413

 
168

 

 
Sales
 
(5
)
 
(11,431
)
 

 

 
Settlements
 
(865
)
 

 
(4,346
)
 
1,196

 
Net transfers into/(out of) Level 3
 

 
10,267

(b)
(367
)
(d) 

 
Balance on December 31, 2017
 
$
2,151

 
$
1,270

 
$
18,926

 
$
(5,645
)
 
Net unrealized gains/(losses) included in net income
 
$
303

(a)
$
(171
)
(c)
$
1,547

(a)
$
(596
)
(f) 

 
 
Year Ended December 31, 2016
 
(Dollars in thousands)
 
Trading
securities
 
Loans  held-for-sale
 
Securities
available-
for-sale
 
Mortgage
servicing
rights, net
 
Net  derivative
liabilities
 
Balance on January 1, 2016
 
$
4,377

 
$
27,418

 
$
1,500

 
$
1,841

 
$
(4,810
)
 
Total net gains/(losses) included in:
 
 
 
 
 
 
 
 
 
 
 
Net income
 
604

 
3,380

 

 
31

 
(2,634
)
 
Purchases
 

 
706

 

 

 

 
Sales
 

 

 

 
(205
)
 

 
Settlements
 
(2,408
)
 
(6,264
)
 
(1,500
)
 
(682
)
 
1,199

 
Net transfers into/(out of) Level 3
 

 
(3,316
)
(d) 

 

 

 
Balance on December 31, 2016
 
$
2,573

 
$
21,924

 
$

 
$
985

 
$
(6,245
)
 
Net unrealized gains/(losses) included in net income
 
$
159

(a) 
$
3,380

(a) 
$

 
$

 
$
(2,634
)
(f) 
(a)
Primarily included in mortgage banking income on the Consolidated Statements of Income.
(b)
Transfers into interest-only strips - AFS level 3 measured on a recurring basis reflect movements from loans held-for-sale (Level 2 nonrecurring).
(c)
Primarily included in fixed income on the Consolidated Statements of Income.
(d)
Transfers out of loans held-for-sale level 3 measured on a recurring basis generally reflect movements into OREO (level 3 nonrecurring).
(e)
Increase related to newly executed Visa-related derivatives, see Note 22-Derivatives.
(f)
Included in Other expense.
Nonrecurring Fair Value Measurements
For assets measured at fair value on a nonrecurring basis which were still held on the balance sheet at December 31, 2018, 2017 and 2016, respectively, the following tables provide the level of valuation assumptions used to determine each adjustment, the related carrying value, and the fair value adjustments recorded during the respective periods.
 
 
 
Carrying value at December 31, 2018
 
Year Ended December 31, 2018
(Dollars in thousands)
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Net gains/(losses)
Loans held-for-sale—other consumer
 
$

 
$
18,712

 
$

 
$
18,712

 
 
$
(1,809
)
Loans held-for-sale—SBAs and USDA
 

 
577,280

 
1,011

 
578,291

 
 
(2,541
)
Loans held-for-sale—first mortgages
 

 

 
541

 
541

 
 
13

Loans, net of unearned income (a)
 

 

 
48,259

 
48,259

 
 
(841
)
OREO (b)
 

 

 
22,387

 
22,387

 
 
(2,599
)
Other assets (c)
 

 

 
8,845

 
8,845

 
 
(4,712
)
 
 
 
 
 
 
 
 
 
 
 
$
(12,489
)
 
 
 
Carrying value at December 31, 2017
 
Year Ended December 31, 2017
(Dollars in thousands) 
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Net gains/(losses)
Loans held-for-sale—SBAs and USDA
 
$

 
$
465,504

 
$
1,473

 
$
466,977

 
 
$
(1,629
)
Loans held-for-sale—first mortgages
 

 

 
618

 
618

 
 
36

Loans, net of unearned income (a)
 

 

 
26,666

 
26,666

 
 
(1,687
)
OREO (b)
 

 

 
39,566

 
39,566

 
 
(996
)
Other assets (c)
 

 

 
26,521

 
26,521

 
 
(3,468
)
 
 
 
 
 
 
 
 
 
 
 
$
(7,744
)
 
 
 
Carrying value at December 31, 2016
 
Year Ended December 31, 2016
(Dollars in thousands) 
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Net gains/(losses)
Loans held-for-sale—SBAs
 
$

 
$
4,286

 
$

 
$
4,286

 
 
$
(1
)
Loans held-for-sale—first mortgages
 

 

 
638

 
638

 
 
75

Loans, net of unearned income (a)
 

 

 
31,070

 
31,070

 
 
(2,055
)
OREO (b)
 

 

 
11,235

 
11,235

 
 
(2,041
)
Other assets (c)
 

 

 
29,609

 
29,609

 
 
(3,349
)
 
 
 
 
 
 
 
 
 
 
 
$
(7,371
)

(a)
Represents carrying value of loans for which adjustments are required to be based on the appraised value of the collateral less estimated costs to sell. Write-downs on these loans are recognized as part of provision for loan losses.
(b)
Represents the fair value and related losses of foreclosed properties that were measured subsequent to their initial classification as OREO. Balance excludes OREO related to government insured mortgages.
(c)
Represents tax credit investments accounted for under the equity method.
Schedule Of Unobservable Inputs Utilized In Determining The Fair Value Of Level 3 Recurring And Non-Recurring Measurements
The following tables provide information regarding the unobservable inputs utilized in determining the fair value of level 3 recurring and non-recurring measurements as of December 31, 2018 and 2017:  
(Dollars in thousands)
 
 
 
 
 
 
 
 
 
 
Values Utilized
Level 3 Class
 
Fair Value at
December 31, 2018
 
Valuation Techniques
 
Unobservable Input
 
Range
 
Weighted Average (d)
Available-for-sale- securities SBA-interest only strips
 
$
9,902

 
Discounted cash flow
 
Constant prepayment rate
 
11% - 12%
 
11%
 
 
 
 
 
 
Bond equivalent yield
 
14% - 15%
 
14%
Loans held-for-sale - residential real estate
 
16,815

 
Discounted cash flow
 
Prepayment speeds - First mortgage
 
2% - 10%
 
3%
 
 
 
 
 
 
Prepayment speeds - HELOC
 
5% - 12%
 
7.5%
 
 
 
 
 
 
Foreclosure losses
 
50% - 66%
 
63%
 
 
 
 
 
 
Loss severity trends - First mortgage
 
2% - 25% of UPB
 
17%
 
 
 
 
 
 
Loss severity trends - HELOC
 
50% - 100% of UPB
 
50%
Loans held-for-sale- unguaranteed interest in SBA loans
 
1,011

 
Discounted cash flow
 
Constant prepayment rate
 
8% - 12%
 
10%
 
 
 
 
 
 
Bond equivalent yield
 
9%
 
9%
Derivative liabilities, other
 
31,540

 
Discounted cash flow
 
Visa covered litigation resolution amount
 
$5.0 billion - $5.8 billion
 
$5.6 billion
 
 
 
 
 
 
Probability of resolution scenarios
 
10% - 25%
 
23%
 
 
 
 
 
 
Time until resolution
 
18 - 48 months
 
36 months
Loans, net of unearned
income (a)
 
48,259

 
Appraisals from comparable properties
 
Marketability adjustments for specific properties
 
0% - 10% of appraisal
 
NM
 
 
 
 
Other collateral valuations
 
Borrowing base certificates adjustment
 
20% - 50% of gross value
 
NM
 
 
 
 
 
 
Financial Statements/Auction values adjustment
 
0% - 25% of reported value
 
NM
OREO (b)
 
22,387

 
Appraisals from comparable properties
 
Adjustment for value changes since appraisal
 
0% - 10% of appraisal
 
NM
Other assets (c)
 
8,845

 
Discounted cash flow
 
Adjustments to current sales yields for specific properties
 
0% - 15% adjustment to yield
 
NM
 
 
 
 
Appraisals from comparable properties
 
Marketability adjustments for specific properties
 
0% - 25% of appraisal
 
NM
NM - Not meaningful.
(a)
Represents carrying value of loans for which adjustments are required to be based on the appraised value of the collateral less estimated costs to sell. Write-downs on these loans are recognized as part of provision for loan losses.
(b)
Represents the fair value of foreclosed properties that were measured subsequent to their initial classification as OREO. Balance excludes OREO related to government insured mortgages.
(c)
Represents tax credit investments accounted for under the equity method.
(d)
Weighted averages are determined by the relative fair value of the instruments or the relative contribution to an instrument's fair value

(Dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Values Utilized
Level 3 Class
 
Fair Value at
December 31, 2017
 
Valuation Techniques
 
Unobservable Input
 
Range
 
Weighted Average (d)
Available-for-sale- securities SBA-interest only strips
 
$
1,270

 
Discounted cash flow
 
Constant prepayment rate
 
10% - 11%
 
11%
 
 
 
 
 
 
Bond equivalent yield
 
17%
 
17%
Loans held-for-sale - residential real estate
 
19,544

 
Discounted cash flow
 
Prepayment speeds - First mortgage
 
2% - 12%
 
3%
 
 
 
 
 
 
Prepayment speeds - HELOC
 
5% - 12%
 
8%
 
 
 
 
 
 
Foreclosure losses
 
50% - 70%
 
65%

 

 

 
Loss severity trends - First mortgage
 
5% - 30% of UPB
 
20%
 
 
 
 
 
 
Loss severity trends - HELOC
 
15% - 100% of UPB
 
55%
Loans held-for-sale- unguaranteed interest in SBA loans
 
1,473

 
Discounted cash flow
 
Constant prepayment rate
 
8% - 12%
 
10%

 


 

 
Bond equivalent yield
 
9% - 10%
 
10%
Derivative liabilities, other
 
5,645

 
Discounted cash flow
 
Visa covered litigation resolution amount
 
$4.4 billion - $5.2 billion
 
$4.9 billion
 
 
 
 
 
 
Probability of resolution scenarios
 
10% - 30%
 
23%
 
 
 
 
 
 
Time until resolution
 
18 - 48 months
 
35 months
Loans, net of unearned
income (a)
 
26,666

 
Appraisals from comparable properties
 
Marketability adjustments for specific properties
 
0% - 10% of appraisal
 
NM
 
 
 
 
Other collateral valuations
 
Borrowing base certificates adjustment
 
20% - 50% of gross value
 
NM
 
 
 
 
 
 
Financial Statements/Auction values adjustment
 
0% - 25% of reported value
 
NM
OREO (b)
 
39,566

 
Appraisals from comparable properties
 
Adjustment for value changes since appraisal
 
0% - 10% of appraisal
 
NM
Other assets (c)
 
26,521

 
Discounted cash flow
 
Adjustments to current sales yields for specific properties
 
0% - 15% adjustment to yield
 
NM
 
 
 
 
Appraisals from comparable properties
 
Marketability adjustments for specific properties
 
0% - 25% of appraisal
 
NM
 
NM - Not meaningful.
(a)
Represents carrying value of loans for which adjustments are required to be based on the appraised value of the collateral less estimated costs to sell. Write-downs on these loans are recognized as part of provision for loan losses.
(b)
Represents the fair value of foreclosed properties that were measured subsequent to their initial classification as OREO. Balance excludes OREO related to government insured mortgages.
(c)
Represents tax credit investments accounted for under the equity method.
(d)
Weighted averages are determined by the relative fair value of the instruments or the relative contribution to an instrument's fair value
Summary Of Differences Between The Fair Value Carrying Amount Of Mortgages Held-For-Sale And Aggregate Unpaid Principal Amount
The following tables reflect the differences between the fair value carrying amount of residential real estate loans held-for-sale measured at fair value in accordance with management’s election and the aggregate unpaid principal amount FHN is contractually entitled to receive at maturity.
 
 
December 31, 2018
(Dollars in thousands)
 
Fair value
carrying
amount
 
Aggregate
unpaid
principal
 
Fair value carrying amount
less aggregate unpaid
principal
Residential real estate loans held-for-sale reported at fair value:
 
 
 
 
 
 
Total loans
 
$
16,273

 
$
23,567

 
$
(7,294
)
Nonaccrual loans
 
4,536

 
8,128

 
(3,592
)
Loans 90 days or more past due and still accruing
 
171

 
281

 
(110
)
 
 
 
 
 
 
 
 
 
December 31, 2017
(Dollars in thousands)
 
Fair value
carrying
amount
 
Aggregate
unpaid
principal
 
Fair value carrying amount
less aggregate unpaid
principal
Residential real estate loans held-for-sale reported at fair value:
 
 
 
 
 
 
Total loans
 
$
20,881

 
$
29,755

 
$
(8,874
)
Nonaccrual loans
 
5,783

 
10,881

 
(5,098
)
Loans 90 days or more past due and still accruing
 

 

 

Changes In Fair Value Of Assets And Liabilities Which Fair Value Option Included In Current Period Earnings
Assets and liabilities accounted for under the fair value election are initially measured at fair value with subsequent changes in fair value recognized in earnings. Such changes in the fair value of assets and liabilities for which FHN elected the fair value option are included in current period earnings with classification in the income statement line item reflected in the following table: 
 
Year Ended December 31
(Dollars in thousands)
2018
 
2017
 
2016
Changes in fair value included in net income:
 
 
 
 
 
Mortgage banking noninterest income
 
 
 
 
 
Loans held-for-sale
$
1,239

 
$
1,547

 
$
3,380

Summary Of Book Value And Estimated Fair Value Of Financial Instruments
The following tables summarize the book value and estimated fair value of financial instruments recorded in the Consolidated Statements of Condition as of December 31, 2018 and December 31, 2017:
 
 
December 31, 2018
 
 
Book
Value
 
Fair Value
(Dollars in thousands) 
 
 
Level 1
 
Level 2
 
Level 3
 
Total
Assets:
 
 
 
 
 
 
 
 
 
 
Loans, net of unearned income and allowance for loan losses
 
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
 
Commercial, financial and industrial
 
$
16,415,381

 
$

 
$

 
$
16,438,272

 
$
16,438,272

Commercial real estate
 
3,999,559

 

 

 
3,997,736

 
3,997,736

Consumer:
 
 
 
 
 
 
 
 
 
 
Consumer real estate
 
6,223,077

 

 

 
6,194,066

 
6,194,066

Permanent mortgage
 
211,448

 

 

 
227,254

 
227,254

Credit card & other
 
505,643

 

 

 
507,001

 
507,001

Total loans, net of unearned income and allowance for loan losses
 
27,355,108

 

 

 
27,364,329

 
27,364,329

Short-term financial assets:
 
 
 
 
 
 
 
 
 
 
Interest-bearing cash
 
1,277,611

 
1,277,611

 

 

 
1,277,611

Federal funds sold
 
237,591

 

 
237,591

 

 
237,591

Securities purchased under agreements to resell
 
386,443

 

 
386,443

 

 
386,443

Total short-term financial assets
 
1,901,645

 
1,277,611

 
624,034

 

 
1,901,645

Trading securities (a)
 
1,448,168

 

 
1,446,644

 
1,524

 
1,448,168

Loans held-for-sale:
 
 
 

 
 
 
 
 
 
Mortgage loans (elected fair value) (a)
 
16,273

 

 

 
16,273

 
16,273

USDA & SBA loans- LOCOM
 
578,291

 

 
582,476

 
1,015

 
583,491

Other consumer loans- LOCOM
 
25,134

 

 
6,422

 
18,712

 
25,134

Mortgage loans- LOCOM
 
59,451

 

 

 
59,451

 
59,451

Total loans held-for-sale
 
679,149

 

 
588,898

 
95,451

 
684,349

Securities available-for-sale (a)
 
4,626,470

 

 
4,616,568

 
9,902

 
4,626,470

Securities held-to-maturity
 
10,000

 

 

 
9,843

 
9,843

Derivative assets (a)
 
81,475

 
28,826

 
52,649

 

 
81,475

Other assets:
 
 
 
 
 
 
 
 
 
 
Tax credit investments
 
163,300

 

 

 
159,452

 
159,452

Deferred compensation mutual funds
 
37,771

 
37,771

 

 

 
37,771

Equity, mutual funds, and other (b)
 
240,780

 
22,248

 

 
218,532

 
240,780

Total other assets
 
441,851

 
60,019

 

 
377,984

 
438,003

Total assets
 
$
36,543,866

 
$
1,366,456

 
$
7,328,793

 
$
27,859,033

 
$
36,554,282

Liabilities:
 
 
 
 
 
 
 
 
 
 
Defined maturity deposits
 
$
4,105,777

 
$

 
$
4,082,822

 
$

 
$
4,082,822

Trading liabilities (a)
 
335,380

 

 
335,380

 

 
335,380

Short-term financial liabilities:
 
 
 
 
 
 
 
 
 
 
Federal funds purchased
 
256,567

 

 
256,567

 

 
256,567

Securities sold under agreements to repurchase
 
762,592

 

 
762,592

 

 
762,592

Other short-term borrowings
 
114,764

 

 
114,764

 

 
114,764

Total short-term financial liabilities
 
1,133,923

 

 
1,133,923

 

 
1,133,923

Term borrowings:
 
 
 
 
 
 
 
 
 
 
Real estate investment trust-preferred
 
46,168

 

 

 
47,000

 
47,000

Term borrowings—new market tax credit investment
 
2,699

 

 

 
2,664

 
2,664

Secured borrowings
 
19,588

 

 

 
19,588

 
19,588

Junior subordinated debentures
 
143,255

 

 

 
134,266

 
134,266

Other long term borrowings
 
959,253

 

 
960,483

 

 
960,483

Total term borrowings
 
1,170,963

 

 
960,483

 
203,518

 
1,164,001

Derivative liabilities (a)
 
133,713

 
30,236

 
71,937

 
31,540

 
133,713

Total liabilities
 
$
6,879,756

 
$
30,236

 
$
6,584,545

 
$
235,058

 
$
6,849,839

 
(a)
Classes are detailed in the recurring and nonrecurring measurement tables.
(b)
Level 1 primarily consists of mutual funds with readily determinable fair value. Level 3 includes restricted investments in FHLB-Cincinnati stock of $87.9 million and FRB stock of $130.7 million.











 
 
December 31, 2017
 
 
Book
Value
 
Fair Value
(Dollars in thousands)
 
 
Level 1
 
Level 2
 
Level 3
 
Total
Assets:
 
 
 
 
 
 
 
 
 
 
Loans, net of unearned income and allowance for loan losses
 
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
 
Commercial, financial and industrial
 
$
15,959,062

 
$

 
$

 
$
15,990,991

 
$
15,990,991

Commercial real estate
 
4,186,268

 

 

 
4,215,367

 
4,215,367

Consumer:
 
 
 
 
 
 
 
 
 
 
Consumer real estate
 
6,330,384

 

 

 
6,320,308

 
6,320,308

Permanent mortgage
 
383,742

 

 

 
388,396

 
388,396

Credit card & other
 
609,918

 

 

 
607,955

 
607,955

Total loans, net of unearned income and allowance for loan losses
 
27,469,374

 

 

 
27,523,017

 
27,523,017

Short-term financial assets:
 
 
 
 
 
 
 
 
 
 
Interest-bearing cash
 
1,185,600

 
1,185,600

 

 

 
1,185,600

Federal funds sold
 
87,364

 

 
87,364

 

 
87,364

Securities purchased under agreements to resell
 
725,609

 

 
725,609

 

 
725,609

Total short-term financial assets
 
1,998,573

 
1,185,600

 
812,973

 

 
1,998,573

Trading securities (a)
 
1,416,345

 

 
1,414,194

 
2,151

 
1,416,345

Loans held-for-sale:
 
 
 
 
 
 
 
 
 
 
Mortgage loans
 
88,173

 

 
6,902

 
81,271

 
88,173

USDA & SBA loans
 
466,977

 

 
467,227

 
1,510

 
468,737

Other consumer loans
 
144,227

 

 
9,965

 
134,262

 
144,227

Securities available-for-sale (a) (b)
 
5,170,255

 
27,017

 
4,903,115

 
240,123

 
5,170,255

Securities held-to-maturity
 
10,000

 

 

 
9,901

 
9,901

Derivative assets (a)
 
81,634

 
10,161

 
71,473

 

 
81,634

Other assets:
 
 
 
 
 
 
 
 
 
 
Tax credit investments
 
119,317

 

 

 
112,292

 
112,292

Deferred compensation assets
 
39,822

 
39,822

 

 

 
39,822

Total other assets
 
159,139

 
39,822

 

 
112,292

 
152,114

Nonearning assets:
 
 
 
 
 
 
 
 
 
 
Cash & due from banks
 
639,073

 
639,073

 

 

 
639,073

Fixed income receivables
 
68,693

 

 
68,693

 

 
68,693

Accrued interest receivable
 
97,239

 

 
97,239

 

 
97,239

Total nonearning assets
 
805,005

 
639,073

 
165,932

 

 
805,005

Total assets
 
$
37,809,702

 
$
1,901,673

 
$
7,851,781

 
$
28,104,527

 
$
37,857,981

Liabilities:
 
 
 
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
 
 
 
Defined maturity
 
$
3,322,921

 
$

 
$
3,293,650

 
$

 
$
3,293,650

Undefined maturity
 
27,297,441

 

 
27,297,431

 

 
27,297,431

Total deposits
 
30,620,362

 

 
30,591,081

 

 
30,591,081

Trading liabilities (a)
 
638,515

 

 
638,515

 

 
638,515

Short-term financial liabilities:
 
 
 
 
 
 
 
 
 
 
Federal funds purchased
 
399,820

 

 
399,820

 

 
399,820

Securities sold under agreements to repurchase
 
656,602

 

 
656,602

 

 
656,602

Other short-term borrowings
 
2,626,213

 

 
2,626,213

 

 
2,626,213

Total short-term financial liabilities
 
3,682,635

 

 
3,682,635

 

 
3,682,635

Term borrowings:
 
 
 
 
 
 
 
 
 
 
Real estate investment trust-preferred
 
46,100

 

 

 
48,880

 
48,880

Term borrowings—new market tax credit investment
 
18,000

 

 

 
17,930

 
17,930

Secured borrowings
 
18,642

 

 

 
18,305

 
18,305

Junior subordinated debentures

 
187,281

 

 

 
187,281

 
187,281

Other long term borrowings
 
948,074

 

 
966,292

 

 
966,292

Total term borrowings
 
1,218,097

 

 
966,292

 
272,396

 
1,238,688

Derivative liabilities (a)
 
85,061

 
9,535

 
69,881

 
5,645

 
85,061

Other noninterest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
Fixed income payables
 
48,996

 

 
48,996

 

 
48,996

Accrued interest payable
 
16,270

 

 
16,270

 

 
16,270

Total other noninterest-bearing liabilities
 
65,266

 

 
65,266

 

 
65,266

Total liabilities
 
$
36,309,936

 
$
9,535

 
$
36,013,670

 
$
278,041

 
$
36,301,246

(a)
Classes are detailed in the recurring and nonrecurring measurement tables.
(b)
Level 3 includes restricted investments in FHLB-Cincinnati stock of $87.9 million and FRB stock of $134.6 million.
 
 
Contractual Amount
 
Fair Value
(Dollars in thousands)
 
December 31, 2018
 
December 31, 2017
 
December 31, 2018
 
December 31, 2017
Unfunded Commitments:
 
 
 
 
 
 
 
 
Loan commitments
 
$
10,884,975

 
$
10,678,485

 
$
2,551

 
$
2,617

Standby and other commitments
 
446,958

 
420,728

 
5,043

 
4,037