Investment Securities (Tables)

12 Months Ended

Dec. 31, 2019

The following tables summarize FHN’s investment securities on December 31, 2019 and 2018:



	December 31, 2019
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities available-for-sale:
U.S. treasuries	$	100	$	—	$	—		$	100
Government agency issued mortgage-backed securities (“MBS”)	2,316,381		34,692		(2,556		)	2,348,517
Government agency issued collateralized mortgage obligations (“CMO”)	1,667,773		9,916		(7,197		)	1,670,492
Other U.S. government agencies	303,463		3,750		(1,121		)	306,092
Corporates and other debt	40,054		486		—			40,540
State and municipalities	57,232		3,324		(30		)	60,526
	$	4,385,003	$	52,168	$	(10,904	)	4,426,267
AFS securities recorded at fair value through earnings:
SBA-interest only strips (a)								19,136
Total securities available-for-sale (b)								$	4,445,403
Securities held-to-maturity:
Corporates and other debt	$	10,000	$	1	$	—		$	10,001
Total securities held-to-maturity	$	10,000	$	1	$	—		$	10,001


(a)	SBA-interest only strips are recorded at elected fair value. See Note 24 - Fair Value of Assets and Liabilities for additional information.


(b)	Includes $3.8 billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes.



	December 31, 2018
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities available-for-sale:
U.S. treasuries	$	100	$	—	$	(2	)	$	98
Government agency issued MBS	2,473,687		4,819		(58,400		)	2,420,106
Government agency issued CMO	2,006,488		888		(48,681		)	1,958,695
Other U.S. government agencies	149,050		809		(73		)	149,786
Corporates and other debt	55,383		388		(461		)	55,310
State and municipalities	32,473		314		(214		)	32,573
	$	4,717,181	$	7,218	$	(107,831	)	4,616,568
AFS securities recorded at fair value through earnings:
SBA-interest only strips (a)								9,902
Total securities available-for-sale (b)								$	4,626,470
Securities held-to-maturity:
Corporates and other debt	$	10,000	$	—	$	(157	)	$	9,843
Total securities held-to-maturity	$	10,000	$	—	$	(157	)	$	9,843


(a)	SBA-interest only strips are recorded at elected fair value. See Note 24 - Fair Value of Assets and Liabilities for additional information.


(b)	Includes $3.8 billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes.

Schedule of Amortized Cost And Fair Value By Contractual Maturity

The amortized cost and fair value by contractual maturity for the available-for-sale and held-to-maturity debt securities portfolios on December 31, 2019 are provided below:



	Held-to-Maturity				Available-for-Sale
(Dollars in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Within 1 year	$	—	$	—	$	35,022	$	35,211
After 1 year; within 5 years	—		—		209,003		213,108
After 5 years; within 10 years	10,000		10,001		755		3,332
After 10 years	—		—		156,069		174,743
Subtotal	10,000		10,001		400,849		426,394
Government agency issued MBS and CMO (a)	—		—		3,984,154		4,019,009
Total	$	10,000	$	10,001	$	4,385,003	$	4,445,403

(a)

Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

Schedule of Gross Gains And Losses On Sale From Available For Sale Portfolio

The table below provides information on gross gains and gross losses from debt investment securities for the years ended December 31: Equity securities are included in 2017.



	Available-for-Sale
(Dollars in thousands)	2019			2018		2017
Gross gains on sales of securities	$	—		$	52	$	2,514
Gross (losses) on sales of securities	(267		)	—		(1,922		)
Net gain/(loss) on sales of securities (a) (b)	(267		)	52		592


(a)	Cash proceeds from the sale of available-for-sale securities during 2019 were $191.7 million and were not material in 2018. Cash proceeds from sales during 2017 were $937.0 million.


(b)	2017 includes a $.4 million gain associated with the call of a $4.4 million held-to-maturity municipal bond.

Schedule of Investments Within The Available For Sale Portfolio That Had Unrealized Losses

The following tables provide information on investments within the available-for-sale portfolio that had unrealized losses as of December 31, 2019 and 2018:



	As of December 31, 2019
	Less than 12 months					12 months or longer					Total
(Dollars in thousands)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. treasuries	$	—	$	—		$	100	$	—		$	100	$	—
Government agency issued MBS	174,983		(495		)	192,755		(2,061		)	367,738		(2,556		)
Government agency issued CMO	378,815		(1,970		)	361,124		(5,227		)	739,939		(7,197		)
Other U.S. government agencies	98,471		(1,121		)	—		—			98,471		(1,121		)
States and municipalities	3,551		(30		)	—		—			3,551		(30		)
Total temporarily impaired securities	$	655,820	$	(3,616	)	$	553,979	$	(7,288	)	$	1,209,799	$	(10,904	)



	As of December 31, 2018
	Less than 12 months							12 months or longer						Total
(Dollars in thousands)	Fair Value			Unrealized Losses				Fair Value			Unrealized Losses			Fair Value		Unrealized Losses
U.S. treasuries	$	—		$	—			$	98		$	(2	)	$	98	$	(2	)
Government agency issued MBS	597,008			(12,335		)		1,537,106			(46,065		)	2,134,114		(58,400		)
Government agency issued CMO	290,863			(2,860		)		1,560,420			(45,821		)	1,851,283		(48,681		)
Other U.S. government agencies	29,776			(73		)		—			—			29,776		(73		)
Corporates and other debt	25,114			(344		)		15,008			(117		)	40,122		(461		)
States and municipalities	17,292			(214		)		—			—			17,292		(214		)
Total temporarily impaired securities	$	960,053	—	$	(15,826	)	—	$	3,112,632	—	$	(92,005	)	$	4,072,685	$	(107,831	)