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Derivatives (Tables)

3 Months Ended

Mar. 31, 2016

Derivatives Associated With Capital Markets Trading Activities

The following tables summarize FHN’s derivatives associated with fixed income trading activities as of March 31, 2016 and 2015:

	March 31, 2016
(Dollars in thousands)	Notional		Assets			Liabilities
Customer Interest Rate Contracts	$	1,822,343		$	87,287		$	935
Offsetting Upstream Interest Rate Contracts		1,822,343			935			87,287
Option Contracts Purchased		5,000			9			-
Forwards and Futures Purchased		3,673,789			12,939			423
Forwards and Futures Sold		3,925,911			1,086			12,806

	March 31, 2015
(Dollars in thousands)	Notional		Assets			Liabilities
Customer Interest Rate Contracts	$	1,675,215		$	83,797		$	2,241
Offsetting Upstream Interest Rate Contracts		1,675,215			2,241			83,797
Option Contracts Purchased		12,500			60			-
Option Contracts Written		7,500			-			12
Forwards and Futures Purchased		3,181,574			5,805			538
Forwards and Futures Sold		3,511,607			1,105			7,290

Derivatives Associated With Interest Rate Risk Management Activities

The following tables summarize FHN’s derivatives associated with interest rate risk management activities as of and for the three months ended March 31, 2016 and 2015:
		March 31, 2016
(Dollars in thousands)		Notional		Assets			Liabilities			Gains/(Losses)
Customer Interest Rate Contracts Hedging
Hedging Instruments and Hedged Items:
	Customer Interest Rate Contracts (a)	$	831,958		$	39,049	$	232			$	12,559
	Offsetting Upstream Interest Rate Contracts (a)		831,958			232		39,549				(12,559)
Debt Hedging
Hedging Instruments:
	Interest Rate Swaps (b)	$	1,150,000		$	17,852	$	-			$	17,037
Hedged Items:
	Term Borrowings (b)		N/A			N/A	$	1,150,000	(c)		$	(16,745)	(d)

		March 31,2015
(Dollars in thousands)		Notional		Assets			Liabilities			Gains/(Losses)
Customer Interest Rate Contracts Hedging
Hedging Instruments and Hedged Items:
	Customer Interest Rate Contracts (a)	$	682,318		$	30,204	$	307			$	4,243
	Offsetting Upstream Interest Rate Contracts (a)		682,318			307		30,704				(4,243)
Debt Hedging
Hedging Instruments:
	Interest Rate Swaps (b)	$	1,350,000		$	24,368	$	2,677			$	970
Hedged Items:
	Term Borrowings (b)		N/A			N/A	$	1,350,000	(c)		$	(923)	(d)

Gains/losses included in the All 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.

Derivative Associated With Cash Flow Hedges

The following table summarizes FHN’s derivative activities associated with cash flow hedges as of and for the three months ended March 31, 2016.

March 31, 2016

(Dollars in thousands)

Notional

Assets

Liabilities

Gains/(Losses)

Cash Flow Hedges

Hedging Instruments:

Interest Rate Swaps

250,000

5,618

N/A

5,618

(a)

Hedged Items:

Variability in Cash Flows Related to Trust Preferred Loans

N/A

250,000

N/A

Schedule Of Derivative Activities Associated With Trust Preferred Loans

Includes approximately $1 million expected to be reclassified into earnings in the next twelve months.

The following tables summarize FHN’s derivative activities associated with held-to-maturity trust preferred loans as of and for the three months ended March 31, 2016 and 2015:

March 31,2016

(Dollars in thousands)

Notional

Assets

Liabilities

Gains/(Losses)

Loan Portfolio Hedging

Hedging Instruments:

Interest Rate Swaps

6,500

N/A

445

Hedged Items:

Trust Preferred Loans (a)

N/A

6,500

(b)

N/A

(42)

(c)

March 31,2015

(Dollars in thousands)

Notional

Assets

Liabilities

Gains/(Losses)

Loan Portfolio Hedging

Hedging Instruments:

Interest Rate Swaps

6,500

N/A

703

Hedged Items:

Trust Preferred Loans (a)

N/A

6,500

(b)

N/A

(41)

(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 March 31:

								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:
2016 (b)	$	150,973	$	-	$	150,973	$	(9,998)	$	(125,274)	$	15,701
2015 (b)		140,917		-		140,917		(14,053)		(126,820)		44

Included in Derivative assets on the Consolidated Condensed Statements of Condition. As of March 31, 2016 and 2015, $14.0 million and $7.2 million, respectively, of derivative assets (primarily fixed income forward contracts) have been excluded from these tables because they are generally not subject to master netting or similar agreements.
2016 and 2015 are comprised entirely of interest rate derivative 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 March 31:

									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:
2016 (b)	$	128,448	$	-		$	128,448	$	(9,998)	$	(63,738)	$	54,712
2015 (b)		120,429		-			120,429		(14,053)		(82,440)		23,936

Included in Derivative liabilities on the Consolidated Condensed Statements of Condition. As of March 31, 2016 and 2015, $17.8 million and $12.8 million, respectively, of derivative liabilities (primarily fixed income forward contracts) have been excluded from these tables because they are generally not subject to master netting or similar agreements.
2016 and 2015 are comprised entirely of interest rate derivative contracts.