Business Segment Information

9 Months Ended

Sep. 30, 2013

Business Segment Information [Abstract]

Business Segment Information

Note 12 – 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 nationally. 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, acquisition-related costs, 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 for thethree and nine months endedSeptember 30:

	Three Months Ended				Nine Months Ended
	September 30				September 30
(Dollars in thousands)	2013		2012		2013		2012
Consolidated
Net interest income	$	158,838	$	173,465	$	480,239	$	518,069
Provision for loan losses		10,000		40,000		40,000		63,000
Noninterest income		150,475		163,538		449,534		524,886
Noninterest expense		433,556		263,169		901,504		1,112,340
Income/(loss) before income taxes		(134,243)		33,834		(11,731)		(132,385)
Provision/(benefit) for income taxes		(31,094)		5,260		1,644		(72,348)
Income/(loss) from continuing operations		(103,149)		28,574		(13,375)		(60,037)
Income/(loss) from discontinued operations, net of tax		123		108		554		160
Net income/(loss)	$	(103,026)	$	28,682	$	(12,821)	$	(59,877)
Average assets	$	24,192,606	$	25,089,754	$	24,619,958	$	25,101,544

	Three Months Ended				Nine Months Ended
	September 30				September 30
(Dollars in thousands)	2013		2012		2013		2012
Regional Banking
Net interest income	$	148,511	$	151,136	$	441,903	$	447,248
Provision/(provision credit) for loan losses		5,159		2,927		15,875		329
Noninterest income		63,884		64,235		184,928		189,324
Noninterest expense		131,438		141,576		390,723		425,480
Income/(loss) before income taxes		75,798		70,868		220,233		210,763
Provision/(benefit) for income taxes		27,359		25,727		79,510		76,509
Net income/(loss)	$	48,439	$	45,141	$	140,723	$	134,254
Average assets	$	12,922,737	$	12,935,133	$	12,939,436	$	12,509,334

Capital Markets
Net interest income	$	3,756	$	4,753	$	11,687	$	16,041
Noninterest income		64,115		80,817		208,926		262,560
Noninterest expense		58,036		64,602		179,631		205,844
Income/(loss) before income taxes		9,835		20,968		40,982		72,757
Provision/(benefit) for income taxes		3,703		7,899		15,432		27,540
Net income/(loss)	$	6,132	$	13,069	$	25,550	$	45,217
Average assets	$	2,116,415	$	2,232,047	$	2,342,728	$	2,322,656

Corporate
Net interest income/(expense)	$	(10,333)	$	(6,096)	$	(28,917)	$	(17,820)
Noninterest income		6,558		7,904		18,224		20,991
Noninterest expense		21,584		21,538		56,239		63,058
Income/(loss) before income taxes		(25,359)		(19,730)		(66,932)		(59,887)
Provision/(benefit) for income taxes		(16,024)		(13,632)		(42,743)		(39,332)
Net income/(loss)	$	(9,335)	$	(6,098)	$	(24,189)	$	(20,555)
Average assets	$	5,166,039	$	5,149,235	$	5,162,727	$	5,289,352

Non-Strategic
Net interest income	$	16,904	$	23,672	$	55,566	$	72,600
Provision for loan losses		4,841		37,073		24,125		62,671
Noninterest income		15,918		10,582		37,456		52,011
Noninterest expense		222,498		35,453		274,911		417,958
Income/(loss) before income taxes		(194,517)		(38,272)		(206,014)		(356,018)
Provision/(benefit) for income taxes		(46,132)		(14,734)		(50,555)		(137,065)
Income/(loss) from continuing operations		(148,385)		(23,538)		(155,459)		(218,953)
Income/(loss) from discontinued operations, net of tax		123		108		554		160
Net income/(loss)	$	(148,262)	$	(23,430)	$	(154,905)	$	(218,793)
Average assets	$	3,987,415	$	4,773,339	$	4,175,067	$	4,980,202

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