Variable Interest Entities (Tables)

6 Months Ended

Jun. 30, 2015

Variable Interest Entities [Abstract]

The following table summarizes VIEs consolidated by FHN as of June 30, 2015 and 2014:

			June 30, 2015						June 30, 2014
			On-Balance Sheet Consumer Loan Securitization			Rabbi Trusts Used for Deferred Compensation Plans			On-Balance Sheet Consumer Loan Securitization			Rabbi Trusts Used for Deferred Compensation Plans
			On-Balance Sheet Consumer Loan Securitization			Rabbi Trusts Used for Deferred Compensation Plans			On-Balance Sheet Consumer Loan Securitization			Rabbi Trusts Used for Deferred Compensation Plans
(Dollars in thousands)			Carrying Value			Carrying Value			Carrying Value			Carrying Value
Assets:
Cash and due from banks				$	1,382			N/A		$	-			N/A
Loans, net of unearned income					66,444			N/A			84,381			N/A
	Less: Allowance for loan losses				214			N/A			725			N/A
		Total net loans			66,230			N/A			83,656			N/A
Other assets					184		$	69,077			410		$	66,360
Total assets				$	67,796		$	69,077		$	84,066		$	66,360
Liabilities:
Term borrowings				$	55,679			N/A		$	74,103			N/A
Other liabilities					3		$	51,861			4		$	50,816
Total liabilities				$	55,682		$	51,861		$	74,107		$	50,816

Summary of the Impact of Qualifying LIHTC Investments

LIHTC investments that do not qualify for the proportional amortization method as defined in ASU 2014-01 and discussed in Note 1 are accounted for using the equity method. Expenses associated with these investments were not material for the three and six months ended June 30, 2015 and 2014. The following table summarizes the impact to the Provision/(benefit) for income taxes on the Consolidated Condensed Statements of Income for the three and six month periods ending June 30, 2015 and 2014 for LIHTC investments accounted for under the proportional amortization method.

		Three Months Ended				Six Months Ended
		June 30				June 30
(Dollars in thousands)		2015		2014		2015		2014
Provision/(benefit) for income taxes:
Amortization of qualifying LIHTC investments	$	2,180	$	2,470	$	4,360	$	4,940
Low income housing tax credits		(2,363)		(2,463)		(4,726)		(4,925)
Other tax benefits related to qualifying LIHTC investments		(755)		(1,864)		(1,599)		(3,719)

Summary Of VIEs Not Consolidated By FHN

The following table summarizes FHN’s nonconsolidated VIEs as of June 30, 2015:

	Maximum		Liability
(Dollars in thousands)	Loss Exposure		Recognized			Classification
Type
Low income housing partnerships	$	68,405		$	11,976	(a)
Other Tax Credit Investments (b) (c)		21,690			-	Other assets
Small issuer trust preferred holdings (d)		344,321			-	Loans, net of unearned income
On-balance sheet trust preferred securitization		50,506			63,686	(e)
Proprietary trust preferred issuances (f)		N/A			206,186	Term borrowings
Proprietary and agency residential mortgage securitizations		24,664			-	(g)
Holdings of agency mortgage-backed securities (d)		3,929,684			-	(h)
Short positions in agency mortgage-backed securities (f)		N/A			1,486	Trading liabilities
Commercial loan troubled debt restructurings (i) (j)		36,047			-	Loans, net of unearned income
Managed discretionary trusts (f)		N/A			N/A	N/A

Maximum loss exposure represents $56.4 million of current investments and $12.0 million of accrued contractual funding commitments. Accrued funding commitments represent unconditional contractual obligations for future funding events, and are also recognized in Other Liabilities. FHN currently expects to be required to fund these accrued commitments by the end of 2016.
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 $63.7 million classified as Term borrowings.
No exposure to loss due to the nature of FHN’s involvement.
Includes $.6 million classified as MSR related to proprietary and agency residential mortgage securitizations and $4.9 million classified as Trading securities related to proprietary residential mortgage securitizations. Aggregate servicing advances of $19.1 million are classified as Other assets.
Includes $473.8 million classified as Trading securities and $3.5 billion classified as Securities available-for-sale.
Maximum loss exposure represents $30.9 million of current receivables and $5.1 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 June 30, 2014:

	Maximum		Liability
(Dollars in thousands)	Loss Exposure		Recognized		Classification
Type
Low income housing partnerships	$	60,134	$	6,471	(a)
Other Tax Credit Investments (b) (c)		22,359		-	Other assets
Small issuer trust preferred holdings (d)		364,942		-	Loans, net of unearned income
On-balance sheet trust preferred securitization		52,682		61,491	(e)
Proprietary trust preferred issuances (f)		N/A		206,186	Term borrowings
Proprietary and agency residential mortgage securitizations		35,118		-	(g)
Holdings of agency mortgage-backed securities (d)		3,703,941		-	(h)
Short positions in agency mortgage-backed securities (f)		N/A		1,092	Trading liabilities
Commercial loan troubled debt restructurings (i) (j)		57,157		-	Loans, net of unearned income
Managed discretionary trusts (f)		N/A		N/A	N/A

Certain previously reported amounts have been revised to reflect the retroactive effect of the adoption of ASU 2014-01, “Equity Method and Joint Ventures: Accounting for Investments in Qualified Affordable Housing Projects.” See Note 1—Financial Information for additional information.

Maximum loss exposure represents $53.7 million of current investments and $6.5 million of accrued contractual funding commitments. Accrued funding commitments represent unconditional contractual obligations for future funding events, and are also recognized in Other Liabilities. FHN currently expects to be required to fund these accrued commitments by the end of 2016.
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 $61.5 million classified as Term borrowings.
No exposure to loss due to the nature of FHN’s involvement.
Includes $1.1 million classified as MSR related to proprietary and agency residential mortgage securitizations and $6.4 million classified as Trading securities related to proprietary and agency residential mortgage securitizations. Aggregate servicing advances of $27.6 million are classified as Other assets.
Includes $371.7 million classified as Trading securities and $3.3 billion classified as Securities available-for-sale.
Maximum loss exposure represents $54.0 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.