Variable Interest Entities (Tables)

9 Months Ended

Sep. 30, 2012

Variable Interest Entities [Abstract]

The following table summarizes VIEs consolidated by FHN as of September 30, 2012 and 2011:

			2012						2011
			On-Balance Sheet			Rabbi Trusts			On-Balance Sheet			Rabbi Trusts
			Consumer Loan Securitizations			Used for Deferred Compensation Plans			Consumer Loan Securitizations			Used for Deferred Compensation Plans
(Dollars in thousands)			Carrying Value			Carrying Value			Carrying Value			Carrying Value
Assets:
Cash and due from banks				$	624			N/A		$	4,719			N/A
Loans, net of unearned income					121,959			N/A			665,744			N/A
	Less: Allowance for loan losses				4,384			N/A			32,369			N/A
		Total net loans			117,575			N/A			633,375			N/A
Other assets					1,907		$	61,409			13,645		$	60,113
Total assets				$	120,106		$	61,409		$	651,739		$	60,113
Liabilities:
Term borrowings					113,342			N/A			653,120			N/A
Other liabilities					16		$	49,579			66		$	49,911
Total liabilities				$	113,358		$	49,579		$	653,186		$	49,911

Summary Of VIEs Not Consolidated By FHN

The following table summarizes FHN’s nonconsolidated VIEs as of September 30, 2012:

	Maximum		Liability
(Dollars in thousands)	Loss Exposure		Recognized			Classification
Type
Low income housing partnerships (a) (b)	$	57,030		$	-	Other assets
New market tax credit LLCs (b) (c)		20,312			-	Other assets
Small issuer trust preferred holdings (d)		446,045			-	Loans, net of unearned income
On-balance sheet trust preferred securitization		60,662			53,511	(e)
Proprietary trust preferred issuances (f)		N/A			206,186	Term borrowings
Proprietary and agency residential mortgage securitizations		425,741			-	(g)
On-balance sheet consumer loan securitizations		6,654			302,633	(h)
Holdings of agency mortgage-backed securities (d)		3,462,956			-	(i)
Short positions in agency mortgage-backed securities (f)		N/A			13,221	Trading liabilities
Commercial loan troubled debt restructurings (j) (k)		95,681			-	Loans, net of unearned income
Managed discretionary trusts (f)		N/A			N/A	N/A

Maximum loss exposure represents $56.5 million of current investments and $.5 million of contractual funding commitments. Only the current investment amount is included in Other assets.
A liability is not recognized as investments are written down over the life of the related tax credit.
Maximum loss exposure represents current investment balance. Of the initial investment, $15.3 million was funded through loans from community development enterprises.
Maximum loss exposure represents the value of current investments. A liability is not recognized as FHN is solely a holder of the trusts' securities.
Includes $112.5 million classified as Loans, net of unearned income, and $1.7 million classified as Trading securities which are offset by $53.5 million classified as Term borrowings.
No exposure to loss due to the nature of FHN's involvement.
Includes $71.5 million and $34.4 million classified as MSR and $8.4 million and $10.8 million classified as Trading securities related to proprietary and agency residential mortgage securitizations, respectively. Aggregate servicing advances of $300.6 million are classified as Other assets.
Includes $309.3 million classified as Loans, net of unearned income which are offset by $302.6 million classified as Term borrowings.
Includes $636.8 million classified as Trading securities and $2.8 billion classified as Securities available for sale.
Maximum loss exposure represents $94.3 million of current receivables and $1.4 million of contractual funding commitments on loans related to commercial borrowers involved in a troubled debt restructuring.
A liability is not recognized as the loans are the only variable interests held in the troubled commercial borrowers' operations.

The following table summarizes FHN's nonconsolidated VIEs as of September 30, 2011:

	Maximum		Liability
(Dollars in thousands)	Loss Exposure		Recognized		Classification
Type
Low income housing partnerships (a) (b)	$	76,607	$	-	Other assets
Small issuer trust preferred holdings (c)		457,156		-	Loans, net of unearned income
On-balance sheet trust preferred securitization		62,253		51,908	(d)
Proprietary trust preferred issuances (e)		N/A		206,186	Term borrowings
Proprietary and agency residential mortgage securitizations		476,329		-	(f)
Holdings of agency mortgage-backed securities (c)		3,588,871		-	(g)
Short positions in agency mortgage-backed securities (e)		N/A		1,617	Trading liabilities
Commercial loan troubled debt restructurings (h) (i)		98,977		-	Loans, net of unearned income
Managed discretionary trusts (e)		N/A		N/A	N/A

Maximum loss exposure represents $75.1 million of current investments and $1.5 million of contractual funding commitments. Only the current investment amount is included in Other Assets.
A liability is not recognized as investments are written down over the life of the related tax credit.
Maximum loss exposure represents the value of current investments. A liability is not recognized as FHN is solely a holder of the trusts' securities.
Includes $112.5 million classified as Loans, net of unearned income, and $1.7 million classified as Trading securities which are offset by $51.9 million classified as Term borrowings.
No exposure to loss due to the nature of FHN's involvement.
Includes $80.9 million and $50.6 million classified as MSR and $12.2 million and $15.5 million classified as Trading securities related to proprietary and agency residential mortgage securitizations, respectively. Aggregate servicing advances of $317.1 million are classified as Other assets.
Includes $563.7 million classified as Trading securities and $3.0 billion classified as Securities available for sale.
Maximum loss exposure represents $98.4 million of current receivables and $.6 million of contractual funding commitments on loans related to commercial borrowers involved in a troubled debt restructuring.
A liability is not recognized as the loans are the only variable interests held in the troubled commercial borrowers' operations.