Derivatives (Tables)

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives Associated With Fixed Income Trading Activities

The following tables summarize FHN’s derivatives associated with fixed income trading activities as of December 31, 2019 and 2018:

	December 31, 2019
(Dollars in thousands)	Notional		Assets		Liabilities
Customer Interest Rate Contracts	$	2,697,522	$	65,768	$	6,858
Offsetting Upstream Interest Rate Contracts	2,697,522		2,583		3,994
Option Contracts Purchased	40,000		131		—
Forwards and Futures Purchased	9,217,350		17,029		3,187
Forwards and Futures Sold	9,403,112		3,611		16,620

	December 31, 2018
(Dollars in thousands)	Notional		Assets		Liabilities
Customer Interest Rate Contracts	$	2,271,448	$	18,744	$	27,768
Offsetting Upstream Interest Rate Contracts	2,271,448		4,014		9,041
Option Contracts Purchased	20,000		25		—
Forwards and Futures Purchased	4,684,177		28,304		181
Forwards and Futures Sold	4,967,454		522		30,055

Derivatives Associated With Interest Rate Risk Management Activities

The following tables summarize FHN’s derivatives associated with interest rate risk management activities as of December 31, 2019 and 2018:

	December 31, 2019
(Dollars in thousands)	Notional		Assets		Liabilities
Customer Interest Rate Contracts Hedging
Hedging Instruments and Hedged Items:
Customer Interest Rate Contracts	$	3,044,067	$	90,394	$	3,515
Offsetting Upstream Interest Rate Contracts	3,044,067		3,537		9,735
Debt Hedging
Hedging Instruments:
Interest Rate Swaps	$	500,000	N/A		$	69
Hedged Items:
Term Borrowings:
Par	N/A		N/A		$	500,000
Cumulative fair value hedging adjustments	N/A		N/A		(1,604		)
Unamortized premium/(discount) and issuance costs	N/A		N/A		(740		)
Total carrying value	N/A		N/A		$	497,656

	December 31, 2018
(Dollars in thousands)	Notional		Assets		Liabilities
Customer Interest Rate Contracts Hedging
Hedging Instruments and Hedged Items:
Customer Interest Rate Contracts	$	2,029,162	$	20,262	$	25,880
Offsetting Upstream Interest Rate Contracts	2,029,162		8,154		9,153
Debt Hedging
Hedging Instruments:
Interest Rate Swaps	$	900,000	$	127	$	6
Hedged Items:
Term Borrowings:
Par	N/A		N/A		$	900,000
Cumulative fair value hedging adjustments	N/A		N/A		(15,094		)
Unamortized premium/(discount) and issuance costs	N/A		N/A		(2,295		)
Total carrying value	N/A		N/A		$	882,611

Gains/(Losses) on Derivatives Associated with Interest Rate Risk Management Activities

The following table summarizes gains/(losses) on FHN’s derivatives associated with interest rate risk management activities for the years ended December 31, 2019, 2018, and 2017:

	Year Ended December 31
	2019			2018			2017
(Dollars in thousands)	Gains/(Losses)			Gains/(Losses)			Gains/(Losses)
Customer Interest Rate Contracts Hedging
Hedging Instruments and Hedged Items:
Customer Interest Rate Contracts (a)	$	92,497		$	1,779		(10,703		)
Offsetting Upstream Interest Rate Contracts (a)	(92,497		)	(1,779		)	10,699
Debt Hedging
Hedging Instruments:
Interest Rate Swaps (b)	$	13,240		$	(1,648	)	$	(7,766	)
Hedged Items:
Term Borrowings (a) (c)	(13,234		)	1,622			7,582

(a) Gains/losses included in All other expense within the Consolidated Statements of Income.

(b) Gains/losses included in the Interest expense for 2019 and 2018, and All other expense for 2017 within the Consolidated Statement of Income.

(c)

Represents gains and losses attributable to changes in fair value due to interest rate risk as designated in ASC 815-20 hedging relationships.

Derivative Associated With Cash Flow Hedges

The following tables summarize FHN’s derivative activities associated with cash flow hedges as of December 31, 2019 and 2018:

	December 31, 2019
(Dollars in thousands)	Notional		Assets		Liabilities
Cash Flow Hedges
Hedging Instruments:
Interest Rate Swaps	$	900,000	N/A		$	241
Hedged Items:
Variability in Cash Flows Related to Debt Instruments (Primarily Loans)	N/A		$	900,000	N/A

	December 31, 2018
(Dollars in thousands)	Notional		Assets		Liabilities
Cash Flow Hedges
Hedging Instruments:
Interest Rate Swaps	$	900,000	$	888	$	5
Hedged Items:
Variability in Cash Flows Related to Debt Instruments (Primarily Loans)	N/A		$	900,000	N/A

Gains/(Losses) on Derivatives Associated with Cash Flow Hedges

The following table summarizes gains/(losses) on FHN’s derivatives associated with cash flow hedges for the years ended December 31, 2019, 2018, and 2017:

	Year Ended December 31
	2019		2018			2017
(Dollars in thousands)	Gains/(Losses)		Gains/(Losses)			Gains/(Losses)
Cash Flow Hedges
Hedging Instruments:
Interest Rate Swaps (a)	$	20,625	$	(5,502	)	$	(8,264	)
Gain/(loss) recognized in Other comprehensive income/(loss)	11,234		(6,284		)	(2,156		)
Gain/(loss) reclassified from AOCI into Interest income	4,105		2,142			(2,945		)

 

(a)

Approximately $1.0 million of cumulative gains are expected to be reclassified into earnings in the next twelve months.

Derivative Assets And Collateral Received

The following table provides details of derivative assets and collateral received as presented on the Consolidated Statements of Condition as of December 31, 2019 and 2018:

							Gross amounts not offset in the Statements of Condition
(Dollars in thousands)	Gross amounts of recognized assets		Gross amounts offset in the Statements of Condition		Net amounts of assets presented in the Statements of Condition (a)		Derivative liabilities available for offset			Collateral Received			Net amount
Derivative assets:
December 31, 2019 (b)	$	162,344	$	—	$	162,344	$	(5,604	)	$	(143,334	)	$	13,406
December 31, 2018 (b)	52,562		—		52,562		(12,745		)	(39,637		)	180

(a) Included in Derivative assets on the Consolidated Statements of Condition. As of December 31, 2019 and 2018, $20.8 million and $28.9 million, respectively, of derivative assets (primarily fixed income forward contracts) have been excluded from these tables because they are generally not subject to master netting or similar agreements.

(b)

Amounts are comprised entirely of interest rate derivative contracts.

Derivative Liabilities and Collateral Pledged

The following table provides details of derivative liabilities and collateral pledged as presented on the Consolidated Statements of Condition as of December 31, 2019 and 2018:

							Gross amounts not offset in the Statements of Condition
(Dollars in thousands)	Gross amounts of recognized liabilities		Gross amounts offset in the Statements of Condition		Net amounts of liabilities presented in the Statements of Condition (a)		Derivative assets available for offset			Collateral pledged			Net amount
Derivative liabilities:
December 31, 2019 (b)	$	24,431	$	—	$	24,431	$	(5,604	)	$	(18,689	)	$	138
December 31, 2018 (b)	71,853		—		71,853		(12,745		)	(54,773		)	4,335

 

(a) Included in Derivative liabilities on the Consolidated Statements of Condition. As of December 31, 2019 and 2018, $43.0 million and $61.9 million, respectively, of derivative liabilities (primarily Visa-related derivatives and fixed income forward contracts) have been excluded from these tables because they are generally not subject to master netting or similar agreements.

(b)

Amounts are comprised entirely of interest rate derivative contracts.