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Derivatives (Tables)

9 Months Ended

Sep. 30, 2013

Derivatives Associated With Legacy Mortgage Servicing Activities

The following table summarizes FHN’s derivatives associated with legacy mortgage servicing activities for the three and nine months ended September 30, 2013 and 2012:
										Gains/(Losses)
										Three Months Ended			Nine Months Ended
(Dollars in thousands)		Notional		Assets			Liabilities			September 30, 2013			September 30, 2013
Retained Interests Hedging
Hedging Instruments:
	Forwards and Futures	$	-		$	-		$	-		$	159		$	(3,047)
	Interest Rate Swaps and Swaptions	$	-		$	-		$	-		$	1,305		$	(4,275)
Hedged Items:
	Mortgage Servicing Rights		N/A		$	114,318			N/A		$	9,844		$	20,174
	Other Retained Interests		N/A		$	15,714			N/A		$	1,628		$	3,422

										Gains/(Losses)
										Three Months Ended			Nine Months Ended
(Dollars in thousands)		Notional		Assets			Liabilities			September 30, 2012			September 30, 2012
Retained Interests Hedging
Hedging Instruments:
	Forwards and Futures	$	20,000		$	542		$	-		$	207		$	9,839
	Interest Rate Swaps and Swaptions	$	1,837,600		$	6,693		$	4,282		$	4,580		$	5,498
Hedged Items:
	Mortgage Servicing Rights		N/A		$	117,522			N/A		$	(1,279)		$	(379)
	Other Retained Interests		N/A		$	19,201			N/A		$	978		$	425

Derivatives Associated With Capital Markets Trading Activities

The following table summarizes FHN’s derivatives associated with capital markets trading activities as of September 30, 2013 and 2012:

	September 30, 2013
(Dollars in thousands)	Notional		Assets			Liabilities
Customer Interest Rate Contracts	$	1,742,060		$	88,154		$	6,880
Offsetting Upstream Interest Rate Contracts		1,742,060			6,880			88,154
Forwards and Futures Purchased		1,664,813			208			9,296
Forwards and Futures Sold		2,038,677			16,669			474

	September 30, 2012
(Dollars in thousands)	Notional		Assets			Liabilities
Customer Interest Rate Contracts	$	1,439,306		$	137,958		$	923
Offsetting Upstream Interest Rate Contracts		1,439,306			923			137,958
Option Contracts Purchased		5,000			1			-
Forwards and Futures Purchased		4,361,583			1,173			10,662
Forwards and Futures Sold		4,706,866			13,147			1,762

Derivatives Associated With Interest Rate Risk Management Activities

The following tables summarize FHN’s derivatives associated with interest rate risk management activities for the three and nine months ended September 30, 2013 and 2012:

										Gains/(Losses)
		September 30, 2013								Three Months Ended				Nine Months Ended
(Dollars in thousands)		Notional		Assets			Liabilities			September 30, 2013				September 30, 2013
Customer Interest Rate Contracts Hedging
Hedging Instruments and Hedged Items:
	Customer Interest Rate Contracts (a)	$	801,260		$	34,703	$	2,452			$	(1,464)			$	(22,673)
	Offsetting Upstream Interest Rate Contracts (a)	$	817,901		$	2,453	$	35,203			$	1,465			$	23,374
Debt Hedging
Hedging Instruments:
	Interest Rate Swaps (b)	$	1,254,000		$	66,049	$	19,622			$	(6,430)			$	(48,777)
Hedged Items:
	Term Borrowings (b)		N/A			N/A	$	1,254,000	(c)		$	6,430	(d)		$	48,777	(d)

										Gains/(Losses)
		September 30, 2012								Three Months Ended				Nine Months Ended
(Dollars in thousands)		Notional		Assets			Liabilities			September 30, 2012				September 30, 2012
Customer Interest Rate Contracts Hedging
Hedging Instruments and Hedged Items:
	Customer Interest Rate Contracts (a)	$	975,213		$	61,984	$	362			$	(3,971)			$	(7,554)
	Offsetting Upstream Interest Rate Contracts (a)	$	975,213		$	362	$	63,384			$	4,071			$	8,254
Debt Hedging
Hedging Instruments:
	Interest Rate Swaps (b)	$	1,604,000		$	111,240	$	-			$	(2,481)			$	(15,642)
Hedged Items:
	Term Borrowings (b)		N/A			N/A	$	1,604,000	(c)		$	2,481	(d)		$	15,642	(d)

Gains/losses included in the Other expense section of the Consolidated Condensed Statements of Income.
Gains/losses included in the All other income and commissions section of the Consolidated Condensed Statements of Income.
Represents par value of term borrowings being hedged.
Represents gains and losses attributable to changes in fair value due to interest rate risk as designated in ASC 815-20 hedging relationships.

Schedule Of Derivative Activities Associated With Trust Preferred Loans

The following tables summarize FHN’s derivative activities associated with held-to-maturity trust preferred loans for the three and nine months ended September 30, 2013 and 2012:

Gains/(Losses)

September 30, 2013

Three Months Ended

Nine Months Ended

(Dollars in thousands)

Notional

Assets

Liabilities

September 30, 2013

Loan Portfolio Hedging

Hedging Instruments:

Interest Rate Swaps

6,500

N/A

1,091

951

Hedged Items:

Trust Preferred Loans (a)

N/A

6,500

(b)

N/A

(25)

(c)

(946)

(c)


												Gains/(Losses)
		September 30, 2012										Three Months Ended				Nine Months Ended
(Dollars in thousands)		Notional			Assets				Liabilities			September 30, 2012				September 30, 2012
Loan Portfolio Hedging
Hedging Instruments:
	Interest Rate Swaps		$	128,750			N/A			$	3,411		$	1,625			$	5,398
Hedged Items:
	Trust Preferred Loans (a)			N/A		$	128,750	(b)			N/A		$	(1,601)	(c)		$	(5,356)	(c)

Assets included in the Loans, net of unearned income section of the Consolidated Condensed Statements of Condition.
Represents principal balance being hedged.
Represents gains and losses attributable to changes in fair value due to interest rate risk as designated in ASC 815-20 hedging relationships.

Derivative Assets And Collateral Received

The following table provides a detail of derivative assets and collateral received as presented on the Consolidated Condensed Statements of Condition as of September 30:

								Gross amounts not offset in the
								Statement of Condition
			Gross amounts		Net amounts of		Derivative
	Gross amounts		offset in the		assets presented		liabilities
	of recognized		Statement of		in the Statement		available for		Collateral
(Dollars in thousands)	assets		Condition		of Condition (a)		offset		Received		Net amount
Derivative assets:
2013 (b)	$	198,238	$	-	$	198,238	$	(36,770)	$	(161,468)	$	-
2012 (b)		319,702		-		319,702		(20,218)		(273,730)		25,754

Included in Derivative Assets on the Consolidated Condensed Statements of Condition. As of September 30, 2013 and 2012, $16.9 million and $14.3 million, respectively, of derivative assets (primarily capital markets forward contracts) have been excluded from these tables because they are generally not subject to master netting or similar agreements.
2013 is comprised entirely of interest rate derivative contracts. 2012 includes $319.2 million of interest rate derivative contracts and $.5 million of forwards and futures contracts.

Derivative Liabilities and Collateral Pledged

The following table provides a detail of derivative liabilities and collateral pledged as presented on the Consolidated Condensed Statements of Condition as of September 30:

									Gross amounts not offset in the
									Statement of Condition
			Gross amounts			Net amounts of
	Gross amounts		offset in the		liabilities presented			Derivative
	of recognized		Statement of			in the Statement		assets available		Collateral
(Dollars in thousands)	liabilities		Condition			of Condition (a)		for offset		pledged		Net amount
Derivative liabilities:
2013 (b)	$	153,403	$	-		$	153,403	$	(36,770)	$	(109,079)	$	7,554
2012 (b)		210,320		-			210,320		(20,218)		(185,230)		4,872

Included in Derivative Liabilities on the Consolidated Condensed Statements of Condition. As of September 30, 2013 and 2012, $12.5 million and $14.8 million, respectively, of derivative liabilities (primarily capital markets forward contracts) have been excluded from these tables because they are generally not subject to master netting or similar agreements.
2013 and 2012 includes $153.4 million and $210.3 million, respectively, of interest rate derivative contracts.