Business Segment Information

3 Months Ended

Mar. 31, 2016

Business Segment Information [Abstract]

Business Segment Information

Note 12 – Business Segment Information

FHN has four business segments: regional banking, fixed income, corporate, and non-strategic. The regional banking segment offers financial products and services, including traditional lending and deposit taking, to retail and commercial customersin Tennessee and other selected 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 fixed income 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 ofunallocated 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, gains on the extinguishment of debt, and acquisition-related costs. 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.

Periodically, FHN adapts its segments to reflect managerial or strategic changes. FHN may also modify its methodology of allocating expenses and equity 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 an internal allocation method. Because the allocations are based on internally developed assignments and allocations, to an extent they are 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 the three months ended March 31:

		Three Months Ended
		March 31
(Dollars in thousands)	2016		2015
Consolidated
Net interest income	$	172,074	$	156,866
Provision for loan losses		3,000		5,000
Noninterest income		134,305		129,689
Noninterest expense		226,927		376,221
Income/(loss) before income taxes		76,452		(94,666)
Provision/(benefit) for income taxes		24,239		(22,261)
Net income/(loss)	$	52,213	$	(72,405)
Average assets	$	26,618,694	$	25,641,934
Certain previously reported amounts have been reclassified to agree with current presentation.

	Three Months Ended
	March 31
(Dollars in thousands)	2016		2015
Regional Banking
Net interest income	$	172,326	$	154,412
Provision/(provision credit) for loan losses		14,767		4,915
Noninterest income		59,275		60,180
Noninterest expense		145,355		135,444
Income/(loss) before income taxes		71,479		74,233
Provision/(benefit) for income taxes		25,429		26,504
Net income/(loss)	$	46,050	$	47,729
Average assets	$	15,944,097	$	14,225,092

Fixed Income
Net interest income	$	2,664	$	4,319
Noninterest income		67,122		61,564
Noninterest expense		58,668		54,741
Income/(loss) before income taxes		11,118		11,142
Provision/(benefit) for income taxes		3,874		4,143
Net income/(loss)	$	7,244	$	6,999
Average assets	$	2,270,144	$	2,447,259

Corporate
Net interest income/(expense)	$	(14,374)	$	(16,080)
Noninterest income		5,723		5,385
Noninterest expense		13,477		14,362
Income/(loss) before income taxes		(22,128)		(25,057)
Provision/(benefit) for income taxes		(11,257)		(11,714)
Net income/(loss)	$	(10,871)	$	(13,343)
Average assets	$	6,362,533	$	6,412,346

Non-Strategic
Net interest income	$	11,458	$	14,215
Provision/(provision credit) for loan losses		(11,767)		85
Noninterest income		2,185		2,560
Noninterest expense		9,427		171,674
Income/(loss) before income taxes		15,983		(154,984)
Provision/(benefit) for income taxes		6,193		(41,194)
Net income/(loss)	$	9,790	$	(113,790)
Average assets	$	2,041,920	$	2,557,237
Certain previously reported amounts have been reclassified to agree with current presentation.