Business Segment Information

3 Months Ended

Mar. 31, 2013

Business Segment Information [Abstract]

Business Segment Information

Note 11 – Business Segment Information

FHN has four business segments: regional banking, capital markets, corporate, and non-strategic. The regional banking segment offers financial products and services, including traditional lending and deposit taking, to retail and commercial customerslargely in Tennessee and surrounding markets. Regional banking provides investments, financial planning, trust services and asset management, 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. The capital markets segment consists of fixed income sales, trading, and strategies for institutional clients in the U.S. and abroad, as well as loan sales, portfolio advisory, 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, and various charges related to restructuring, repositioning, and efficiency initiatives. 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 along with the associated restructuring, repositioning, and efficiency charges.

Periodically, FHN adapts its segments to reflect managerial or strategic changes. FHN may also modify its methodology of allocating expenses among segments which could change historical segment results. Total revenue, expense, and asset levels reflect those which are specifically identifiable or which are allocated based on internal allocation method.Because the allocations are based on internally developed assignments and allocations they are to an extent 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 assets for each segment forthree months endedMarch 31:

		Three Months Ended
		March 31
(Dollars in thousands)	2013		2012
Consolidated
Net interest income	$	161,382	$	171,929
Provision for loan losses		15,000		8,000
Noninterest income		156,427		202,441
Noninterest expense		240,540		321,994
Income/(loss) before income taxes		62,269		44,376
Provision/(benefit) for income taxes		17,730		10,570
Income/(loss) from continuing operations		44,539		33,806
Income/(loss) from discontinued operations, net of tax		430		(435)
Net income/(loss)	$	44,969	$	33,371
Average assets	$	25,078,227	$	25,200,373

	Three Months Ended
	March 31
(Dollars in thousands)	2013		2012
Regional Banking
Net interest income	$	145,097	$	146,636
Provision/(provision credit) for loan losses		(2,485)		(7,426)
Noninterest income		59,144		60,052
Noninterest expense		128,713		140,643
Income/(loss) before income taxes		78,013		73,471
Provision/(benefit) for income taxes		28,352		26,752
Net income/(loss)	$	49,661	$	46,719
Average assets	$	12,956,515	$	12,231,651

Capital Markets
Net interest income	$	3,847	$	5,680
Noninterest income		76,612		106,775
Noninterest expense		61,668		80,306
Income/(loss) before income taxes		18,791		32,149
Provision/(benefit) for income taxes		7,123		12,238
Net income/(loss)	$	11,668	$	19,911
Average assets	$	2,492,129	$	2,351,599

Corporate
Net interest income/(expense)	$	(7,717)	$	(5,309)
Noninterest income		7,855		9,262
Noninterest expense		17,587		22,373
Income/(loss) before income taxes		(17,449)		(18,420)
Provision/(benefit) for income taxes		(11,171)		(11,934)
Net income/(loss)	$	(6,278)	$	(6,486)
Average assets	$	5,254,397	$	5,427,352

Non-Strategic
Net interest income	$	20,155	$	24,922
Provision for loan losses		17,485		15,426
Noninterest income		12,816		26,352
Noninterest expense		32,572		78,672
Income/(loss) before income taxes		(17,086)		(42,824)
Provision/(benefit) for income taxes		(6,574)		(16,486)
Income/(loss) from continuing operations		(10,512)		(26,338)
Income/(loss) from discontinued operations, net of tax		430		(435)
Net income/(loss)	$	(10,082)	$	(26,773)
Average assets	$	4,375,186	$	5,189,771

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