Variable Interest Entities (Tables)

9 Months Ended

Sep. 30, 2014

Variable Interest Entities [Abstract]

The following table summarizes VIEs consolidated by FHN as of September 30, 2014 and 2013:

			September 30, 2014						September 30, 2013
			On-Balance Sheet Consumer Loan Securitizations			Rabbi Trusts Used for Deferred Compensation Plans			On-Balance Sheet Consumer Loan Securitizations			Rabbi Trusts Used for Deferred Compensation Plans
			On-Balance Sheet Consumer Loan Securitizations			Rabbi Trusts Used for Deferred Compensation Plans			On-Balance Sheet Consumer Loan Securitizations			Rabbi Trusts Used for Deferred Compensation Plans
(Dollars in thousands)			Carrying Value			Carrying Value			Carrying Value			Carrying Value
Assets:
Cash and due from banks				$	300			N/A		$	1,494			N/A
Loans, net of unearned income					81,111			N/A			104,052			N/A
	Less: Allowance for loan losses				812			N/A			3,217			N/A
		Total net loans			80,299			N/A			100,835			N/A
Other assets					438		$	66,290			1,435		$	63,238
Total assets				$	81,037		$	66,290		$	103,764		$	63,238
Liabilities:
Term borrowings				$	70,720			N/A		$	93,700			N/A
Other liabilities					4		$	50,477			19		$	49,469
Total liabilities				$	70,724		$	50,477		$	93,719		$	49,469

Summary Of VIEs Not Consolidated By FHN

The following table summarizes FHN’s nonconsolidated VIEs as of September 30, 2014:

	Maximum		Liability
(Dollars in thousands)	Loss Exposure		Recognized			Classification
Type
Low income housing partnerships (a) (b)	$	49,317		$	-	Other assets
New market tax credit LLCs (b) (c)		21,929			-	Other assets
Small issuer trust preferred holdings (d)		364,912			-	Loans, net of unearned income
On-balance sheet trust preferred securitization		52,320			61,853	(e)
Proprietary trust preferred issuances (f)		N/A			206,186	Term borrowings
Proprietary and agency residential mortgage securitizations		26,973			-	(g)
Holdings of agency mortgage-backed securities (d)		3,843,125			-	(h)
Commercial loan troubled debt restructurings (i) (j)		55,539			-	Loans, net of unearned income
Managed discretionary trusts (f)		N/A			N/A	N/A

Maximum loss exposure represents $43.5 million of current investments and $5.9 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, $18.0 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 $61.9 million classified as Term borrowings.
No exposure to loss due to the nature of FHN’s involvement.
Includes $.7 million and $.2 million classified as MSR related to proprietary and agency residential mortgage securitizations, respectively, and $6.1 million classified as Trading securities related to proprietary residential mortgage securitizations. Aggregate servicing advances of $19.9 million are classified as Other assets.
Includes $502.6 million classified as Trading securities and $3.3 billion classified as Securities available-for-sale.
Maximum loss exposure represents $52.4 million of current receivables and $3.1 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, 2013:

	Maximum		Liability
(Dollars in thousands)	Loss Exposure		Recognized		Classification
Type
Low income housing partnerships (a) (b)	$	53,123	$	-	Other assets
New market tax credit LLCs (b) (c)		23,014		-	Other assets
Small issuer trust preferred holdings (d)		402,307		-	Loans, net of unearned income
On-balance sheet trust preferred securitization		54,314		59,860	(e)
Proprietary trust preferred issuances (f)		N/A		206,186	Term borrowings
Proprietary and agency residential mortgage securitizations		409,429		-	(g)
On-balance sheet consumer loan securitizations		21,084		235,874	(h)
Holdings of agency mortgage-backed securities (d)		3,398,870		-	(i)
Short positions in agency mortgage-backed securities (f)		N/A		1,545	Trading liabilities
Commercial loan troubled debt restructurings (j) (k)		73,127		-	Loans, net of unearned income
Managed discretionary trusts (f)		N/A		N/A	N/A

Maximum loss exposure represents $46.1 million of current investments and $7.0 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, $18.0 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 $59.9 million classified as Term borrowings.
No exposure to loss due to the nature of FHN’s involvement.
Includes $72.9 million and $31.8 million classified as MSR and $7.3 million and $8.4 million classified as Trading securities related to proprietary and agency residential mortgage securitizations, respectively. Aggregate servicing advances of $289.1 million are classified as Other assets.
Includes $257.0 million classified as Loans, net of unearned income which are offset by $235.9 million classified as Term borrowings.
Includes $498.3 million classified as Trading securities and $2.9 billion classified as Securities available-for-sale.
Maximum loss exposure represents $70.2 million of current receivables and $2.9 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.

Schedule Of Cash Flows Related To Loan Sales And Securitizations [Table Text Block]


For the three and nine months ended September 30, 2013, cash flows received and paid related to loan sales and securitizations where FHN had continuing involvement were as follows:
	Three Months Ended		Nine Months Ended
	Three Months Ended		Nine Months Ended
(Dollars in thousands)	September 30, 2013		September 30, 2013
Proceeds from initial sales	$	-	$	10,843
Servicing fees retained (a)		11,261		36,542
Purchases of GNMA guaranteed mortgages		17,797		88,652
Purchases of previously transferred financial assets (b) (c)		41,916		266,266
Other cash flows received on retained interests		1,260		4,088

Included servicing fees on MSR associated with loan sales and purchased MSR.
Included repurchases of delinquent and performing loans, foreclosed assets, and make-whole payments for economic losses incurred by purchaser. Also included buyouts from GSEs in order to facilitate foreclosures.
Nine months ended September 30, 2013, included $74.7 million of cash paid related to clean-up calls exercised by FHN.

Schedule Of Principal Amount Of Delinquent Loans, And Net Credit Losses

The principal amount of loans transferred through loan sales and securitizations and other loans managed with them in which FHN had continuing involvement, the principal amount of delinquent loans, and the net credit losses during the three and nine months ended September 30, 2013 are as follows:

Principal Amount of Residential Real Estate Loans (a) (b) (c)

Net Credit Losses (c)

Three Months Ended

Nine Months Ended

(Dollars in thousands)

September 30, 2013

Total loans managed or transferred

13,016,536

47,832

185,443

Amounts represent real estate residential loans in FHN’s portfolio, held-for-sale, and loans that have been transferred in proprietary securitizations and whole loan sales in which FHN had a retained interest other than servicing rights. Also included $4.4 billion of loans transferred to GSEs with any type of retained interest other than servicing rights.
Includes $.7 billion where the principal amount is 90 days or more past due or nonaccrual. Included in this amount was $41.9 million of GNMA guaranteed mortgages.
No delinquency or net credit loss data is provided for the loans transferred to FNMA or FHLMC because these agencies retain credit risk. See Note 11 - Contingencies and Other Disclosures for discussion related to repurchase obligations for loans transferred to GSEs or private investors.