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Fair Value Of Assets And Liabilities (Tables)
 3 Months Ended
Mar. 31, 2016
Fair Value Of Assets And Liabilities [Abstract]  
Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis
Recurring Fair Value Measurements
The following table presents the balance of assets and liabilities measured at fair value on a recurring basis as of March 31, 2016:
March 31, 2016
(Dollars in thousands)Level 1  Level 2  Level 3  Total
Trading securities - fixed income:      
U.S. treasuries$-  $63,687  $-  $63,687  
Government agency issued MBS-  427,851  -  427,851  
Government agency issued CMO-  169,254  -  169,254  
Other U.S. government agencies-  201,760  -  201,760  
States and municipalities-  49,745  -  49,745  
Trading loans-21,992-21,992
Corporate and other debt-  284,576  5  284,581  
Equity, mutual funds, and other-  4,599  -  4,599  
Total trading securities - fixed income -  1,223,464  5  1,223,469  
Trading securities - mortgage banking-  -  3,052  3,052
Loans held-for-sale-  -  26,287  26,287  
Securities available-for-sale:      
U.S. treasuries-  100  -  100  
Government agency issued MBS-  1,887,422  -  1,887,422  
Government agency issued CMO-  1,938,221  -  1,938,221  
States and municipalities-  -  1,500  1,500  
Equity, mutual funds, and other25,309  -  -  25,309  
Total securities available-for-sale25,309  3,825,743  1,500  3,852,552  
Other assets:      
Mortgage servicing rights--1,7251,725
Deferred compensation assets29,863  -  -  29,863  
Derivatives, forwards and futures14,025  -  -  14,025  
Derivatives, interest rate contracts -  150,982  -  150,982  
Total other assets43,888  150,982  1,725  196,595  
Total assets$69,197  $5,200,189  $32,569  $5,301,955  
Trading liabilities - fixed income:      
U.S. treasuries$-  $512,799  $-  $512,799  
Government agency issued CMO-17-17
Other U.S. government agencies-  5,037  -  5,037  
Corporate and other debt-  220,800  -  220,800  
Total trading liabilities - fixed income-  738,653  -  738,653  
Other liabilities:  
Derivatives, forwards and futures13,229  -  -  13,229  
Derivatives, interest rate contracts -  128,448  -  128,448  
Derivatives, other-  -  4,6204,620
Total other liabilities13,229128,4484,620146,297
Total liabilities$13,229  $867,101  $4,620  $884,950  

The following table presents the balance of assets and liabilities measured at fair value on a recurring basis as of March 31, 2015:
  March 31, 2015
(Dollars in thousands)Level 1  Level 2  Level 3  Total
Trading securities - fixed income:      
U.S. treasuries$-  $108,199  $-  $108,199
Government agency issued MBS-  547,569  -  547,569
Government agency issued CMO-  312,086  -  312,086
Other U.S. government agencies-  161,317  -  161,317
States and municipalities-  57,181  -  57,181
Corporate and other debt-  339,560  5  339,565
Equity, mutual funds, and other-  1,225  -1,225
Total trading securities - fixed income -  1,527,137  5  1,527,142
Trading securities - mortgage banking-  -  5,321  5,321
Loans held-for-sale-  -  26,700  26,700
Securities available-for-sale:      
U.S. treasuries-  100  -  100
Government agency issued MBS-  762,850  -  762,850
Government agency issued CMO-  2,716,147  -  2,716,147
Other U.S. government agencies-  -  1,691  1,691
States and municipalities-  8,405  1,500  9,905
Equity, mutual funds, and other25,870  -  -  25,870
Total securities available-for-sale25,870  3,487,502  3,191  3,516,563
Other assets:
Mortgage servicing rights-  -  2,342  2,342
Deferred compensation assets26,440  -  -  26,440
Derivatives, forwards and futures6,910  -  -  6,910
Derivatives, interest rate contracts-  140,976  -  140,976
Derivatives, other-267-267
Total other assets33,350  141,243  2,342  176,935
Total assets$59,220  $5,155,882  $37,559  $5,252,661
Trading liabilities - fixed income:      
U.S. treasuries$-  $514,886  $-  $514,886
Government agency issued CMO-1-1
Other U.S. government agencies-17,863-17,863
States and municipalities-1,643-1,643
Corporate and other debt-276,748-276,748
Equity, mutual funds, and other-2,000-2,000
Total trading liabilities - fixed income-  813,141  -  813,141
Other liabilities:
Derivatives, forwards and futures7,828  -  -  7,828
Derivatives, interest rate contracts-  120,440  -  120,440
Derivatives, other-  -  5,005  5,005
Total other liabilities7,828  120,440  5,005  133,273
Total liabilities$7,828  $933,581  $5,005  $946,414
Summary Of Changes In Level 3 Assets And Liabilities Measured At Fair Value
Changes in Recurring Level 3 Fair Value Measurements
The changes in Level 3 assets and liabilities measured at fair value for the three months ended March 31, 2016 and 2015, on a recurring basis are summarized as follows:
Three Months Ended March 31, 2016
SecuritiesMortgage
TradingLoans held-available-servicingNet derivative
(Dollars in thousands)securitiesfor-salefor-salerights, netliabilities
Balance on January 1, 2016$4,377  $27,418  $1,500$1,841$(4,810)
Total net gains/(losses) included in:
Net income147  342  --(109)
Other comprehensive income /(loss)-  -  ---  
Purchases-  148  ---  
Issuances-  -  ---  
Sales-  -  ---  
Settlements(1,467)(1,365)-(116)299  
Net transfers into/(out of) Level 3-  (256) (b)  ---  
Balance on March 31, 2016$3,057  $26,287  $1,500$1,725$(4,620)
Net unrealized gains/(losses) included in net income$(115) (a)  $342 (a)  $-$-$(109) (c)

Three Months Ended March 31, 2015
SecuritiesMortgage
TradingLoans held-available-servicingNet derivative
(Dollars in thousands)securitiesfor-salefor-salerights, netliabilities
Balance on January 1, 2015$5,642  $27,910  $3,307$2,517  $(5,240)
Total net gains/(losses) included in:
Net income170  1,142--  (57)
Other comprehensive income /(loss)-  -  (14)-  -
Purchases-  854  --  -
Issuances-  -  --  -
Sales-  -  --  -
Settlements(486)(2,490)(102)(175)292
Net transfers into/(out of) Level 3 -  (716) (b)--  -
Balance on March 31, 2015$5,326  $26,700  $3,191$2,342  $(5,005)
Net unrealized gains/(losses) included in net income$171 (a)$1,142 (a)$-$-$(57) (c)
Certain previously reported amounts have been reclassified to agree with current presentation.

  • Primarily included in mortgage banking income on the Consolidated Condensed Statements of Income.
  • Transfers out of recurring loans held-for-sale level 3 balances reflect movements out of loans held-for-sale and into real estate acquired by foreclosure (level 3 nonrecurring).
  • Included in Other expense.
Nonrecurring Fair Value Measurements

Nonrecurring Fair Value Measurements

From time to time, FHN may be required to measure certain other financial assets at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of LOCOM accounting or write-downs of individual assets. For assets measured at fair value on a nonrecurring basis which were still held on the balance sheet at March 31, 2016 and 2015, respectively, the following tables provide the level of valuation assumptions used to determine each adjustment, the related carrying value, and the fair value adjustments recorded during the respective periods.

    Three Months Ended
Carrying value at March 31, 2016March 31, 2016
(Dollars in thousands)  Level 1  Level 2  Level 3  Total   Net gains/(losses)
Loans held-for-sale - first mortgages  $-  $-  $726  $726  $5
Loans, net of unearned income (a)-  -  33,238  33,238  (4,672)
Real estate acquired by foreclosure (b)-  -  17,460  17,460  (536)
Other assets (c)-  -  24,231  24,231  (706)
          $(5,909)

Three Months Ended
Carrying value at March 31, 2015March 31, 2015
(Dollars in thousands)  Level 1  Level 2  Level 3  Total   Net gains/(losses)
Loans held-for-sale - SBAs  $-  $3,211  $-  $3,211  $3
Loans held-for-sale - first mortgages  -  -  858  858  38
Loans, net of unearned income (a)-  -  40,386  40,386  (1,362)
Real estate acquired by foreclosure (b)-  -  29,681  29,681  (376)
Other assets (c)-  -  28,265  28,265  (395)
          $(2,092)
Certain previously reported amounts have been reclassified to agree with current presentation.

  • Represents carrying value of loans for which adjustments are required to be based on the appraised value of the collateral less estimated costs to sell. Write-downs on these loans are recognized as part of provision for loan losses.
  • Represents the fair value and related losses of foreclosed properties that were measured subsequent to their initial classification as foreclosed assets. Balance excludes foreclosed real estate related to government insured mortgages.
  • Represents tax credit investments accounted for under the equity method.
Schedule Of Unobservable Inputs Utilized In Determining The Fair Value Of Level 3 Recurring And Non-Recurring Measurements
Level 3 Measurements
The following tables provide information regarding the unobservable inputs utilized in determining the fair value of level 3 recurring and non-recurring measurements as of March 31, 2016 and 2015:
(Dollars in Thousands)
Fair Value at
Level 3 ClassMarch 31, 2016Valuation TechniquesUnobservable InputValues Utilized
Trading securities - mortgage$3,052Discounted cash flowPrepayment speeds 24% - 46%
Discount rate47% - 82%
Loans held-for-sale - residential real estate27,013Discounted cash flowPrepayment speeds - First mortgage2% - 20%
Prepayment speeds - HELOC3% - 15%
Foreclosure losses45% - 57%
Loss severity trends - First mortgage10% - 65% of UPB
Loss severity trends - HELOC35% - 100% of UPB
Draw rate - HELOC2% - 12%
Derivative liabilities, other4,620Discounted cash flowVisa covered litigation resolution amount$4.4 billion - $5.2 billion
Probability of resolution scenarios5% - 30%
Time until resolution6 - 36 months
Loans, net of unearned income (a)33,238Appraisals from comparable propertiesMarketability adjustments for specific properties0% - 10% of appraisal
Other collateral valuationsBorrowing base certificates adjustment20% - 50% of gross value
Financial Statements/Auction values adjustment0% - 25% of reported value
Real estate acquired by foreclosure (b)17,460Appraisals from comparable propertiesAdjustment for value changes since appraisal0% - 10% of appraisal
Other assets (c)24,231Discounted cash flowAdjustments to current sales yields for specific properties0% - 15% adjustment to yield
Appraisals from comparable propertiesMarketability adjustments for specific properties0% - 25% of appraisal

  • Represents carrying value of loans for which adjustments are required to be based on the appraised value of the collateral less estimated costs to sell. Write-downs on these loans are recognized as part of provision for loan losses.
  • Represents the fair value of foreclosed properties that were measured subsequent to their initial classification as foreclosed assets. Balance excludes foreclosed real estate related to government insured mortgages.
  • Represents tax credit investments accounted for under the equity method.

(Dollars in Thousands)
Fair Value at
Level 3 ClassMarch 31, 2015Valuation TechniquesUnobservable InputValues Utilized
Trading securities - mortgage$5,321Discounted cash flowPrepayment speeds42% - 46%
Discount rate6% - 55%
Loans held-for-sale - residential real estate27,558Discounted cash flowPrepayment speeds - First mortgage2% - 22%
Prepayment speeds - HELOC5% - 15%
Foreclosure Losses50% - 60%
Loss severity trends - First mortgage10% - 70% of UPB
Loss severity trends - HELOC45% - 100% of UPB
Draw Rate - HELOC5% - 12%
Derivative liabilities, other5,005Discounted cash flowVisa covered litigation resolution amount$4.5 billion - $5.6 billion
Probability of resolution scenarios10% - 25%
Time until resolution6 - 48 months
Loans, net of unearned income (a)40,386Appraisals from comparable propertiesMarketability adjustments for specific properties0% - 10% of appraisal
Other collateral valuationsBorrowing base certificates adjustment20% - 50% of gross value
Financial Statements/Auction Values adjustment0% - 25% of reported value
Real estate acquired by foreclosure (b)29,681Appraisals from comparable propertiesAdjustment for value changes since appraisal0% - 10% of appraisal
Other assets (c)28,265Discounted cash flowAdjustments to current sales yields for specific properties0% - 15% adjustment to yield
Appraisals from comparable propertiesMarketability adjustments for specific properties0% - 25% of appraisal

  • Represents carrying value of loans for which adjustments are required to be based on the appraised value of the collateral less estimated costs to sell. Write-downs on these loans are recognized as part of provision for loan losses.
  • Represents the fair value of foreclosed properties that were measured subsequent to their initial classification as foreclosed assets. Balance excludes foreclosed real estate related to government insured mortgages.
  • Represents tax credit investments accounted for under the equity method.
Summary Of Differences Between The Fair Value Carrying Amount Of Mortgages Held-For-Sale And Aggregate Unpaid Principal Amount
The following tables reflect the differences between the fair value carrying amount of residential real estate loans held-for-sale measured at fair value in accordance with management’s election and the aggregate unpaid principal amount FHN is contractually entitled to receive at maturity.
March 31, 2016
(Dollars in thousands)Fair value carrying amountAggregate unpaid principalFair value carrying amount less aggregate unpaid principal
Residential real estate loans held-for-sale reported at fair value:    
Total loans$26,287  $40,197  $(13,910)
Nonaccrual loans7,365  14,364  (6,999)
Loans 90 days or more past due and still accruing227  309  (82)
March 31, 2015
(Dollars in thousands)Fair value carrying amountAggregate unpaid principalFair value carrying amount less aggregate unpaid principal
Residential real estate loans held-for-sale reported at fair value:    
Total loans$26,700  $40,762  $(14,062)
Nonaccrual loans6,780  13,023  (6,243)
Loans 90 days or more past due and still accruing1,343  1,686  (343)
Changes In Fair Value Of Assets And Liabilities Which Fair Value Option Included In Current Period Earnings
Assets and liabilities accounted for under the fair value election are initially measured at fair value with subsequent changes in fair value recognized in earnings. Such changes in the fair value of assets and liabilities for which FHN elected the fair value option are included in current period earnings with classification in the income statement line item reflected in the following table:
Three Months Ended
March 31
(Dollars in thousands)20162015
Changes in fair value included in net income:
Mortgage banking noninterest income
Loans held-for-sale$342$1,142
Summary Of Book Value And Estimated Fair Value Of Financial Instruments

The following tables summarize the book value and estimated fair value of financial instruments recorded in the Consolidated Condensed Statements of Condition as well as unfunded loan commitments and stand by and other commitments as of March 31, 2016 and 2015.

  March 31, 2016
BookFair Value
(Dollars in thousands)  Value  Level 1  Level 2  Level 3  Total
Assets:          
Loans, net of unearned income and allowance for loan losses          
Commercial:          
Commercial, financial and industrial  $10,158,296  $-  $-  $10,051,987  $10,051,987  
Commercial real estate  1,822,943  -  -  1,797,610  1,797,610
Retail:          
Consumer real estate 4,622,909  -  -  4,512,005  4,512,005  
Permanent mortgage 424,037  -  -  392,985  392,985  
Credit card & other  342,775  -  -  344,736  344,736  
Total loans, net of unearned income and allowance for loan losses  17,370,960  -  -  17,099,323  17,099,323  
Short-term financial assets:          
Interest-bearing cash  951,920  951,920  -  -  951,920  
Federal funds sold  34,061  -  34,061  -  34,061  
Securities purchased under agreements to resell  767,483  -  767,483  -  767,483  
Total short-term financial assets1,753,464951,920801,544-1,753,464
Trading securities (a)1,226,521  -  1,223,464  3,057  1,226,521  
Loans held-for-sale 116,270  -  -  116,270  116,270  
Securities available-for-sale (a) (b)4,014,405  25,309  3,825,743  163,353  4,014,405  
Securities held-to-maturity14,326  -  -  15,021  15,021  
Derivative assets (a)165,007  14,025  150,982  -  165,007
  
Other assets:  
Tax credit investments  88,670--81,67281,672  
Deferred compensation assets29,86329,863--29,863
Total other assets  118,533  29,863  -  81,672  111,535
Nonearning assets:    
Cash & due from banks  280,625  280,625  -  -  280,625  
Fixed income receivables  114,854  -  114,854  -  114,854  
Accrued interest receivable  70,849  -  70,849  -  70,849  
Total nonearning assets  466,328  280,625  185,703  -  466,328
Total assets  $25,245,814  $1,301,742  $6,187,436  $17,478,696  $24,967,874
          
Liabilities:    
Deposits:    
Defined maturity$1,317,431  $-  $1,326,095  $-  $1,326,095  
Undefined maturity19,010,403-19,010,403-19,010,403
Total deposits20,327,834  -20,336,498-20,336,498  
Trading liabilities (a)738,653  -  738,653  -  738,653
Short-term financial liabilities:    
Federal funds purchased588,413-588,413-588,413
Securities sold under agreements to repurchase  425,217  -  425,217  -  425,217  
Other short-term borrowings96,723-96,723-96,723
Total short-term financial liabilities  1,110,353  -  1,110,353  -  1,110,353
Term borrowings:    
Real estate investment trust-preferred  45,981  -  -  49,350  49,350  
Term borrowings - new market tax credit investment  18,000  -  -  18,234  18,234  
Borrowings secured by residential real estate34,914--30,13130,131
Other long term borrowings1,224,854-1,199,592-1,199,592
Total term borrowings1,323,749  -  1,199,592  97,715  1,297,307  
Derivative liabilities (a)146,297  13,229  128,448  4,620  146,297
  
Other noninterest-bearing liabilities:    
Fixed income payables  56,399  -  56,399  -  56,399  
Accrued interest payable  25,077  -  25,077  -  25,077  
Total other noninterest-bearing liabilities81,476  -  81,476  -81,476
Total liabilities$23,728,362  $13,229  $23,595,020  $102,335$23,710,584

  • Classes are detailed in the recurring and nonrecurring measurement tables.
  • Level 3 includes restricted investments in FHLB-Cincinnati stock of $87.9 million and FRB stock of $68.6 million.

  March 31, 2015
BookFair Value
(Dollars in thousands)  Value  Level 1  Level 2  Level 3  Total
Assets:          
Loans, net of unearned income and allowance for loan losses          
Commercial:          
Commercial, financial and industrial$9,570,703  $-  $-  $9,523,767  $9,523,767  
Commercial real estate  1,303,232  -  -  1,285,775  1,285,775
Retail:          
Consumer real estate4,813,572  -  -  4,640,351  4,640,351  
Permanent mortgage491,522  -  -  458,133  458,133  
Credit card & other  324,766  -  -  326,506  326,506  
Total loans, net of unearned income and allowance for loan losses16,503,795  -  -  16,234,532  16,234,532  
Short-term financial assets:          
Interest-bearing cash  438,633  438,633  -  -  438,633  
Federal funds sold43,052-43,052-43,052
Securities purchased under agreements to resell  831,541  -  831,541  -  831,541  
Total short-term financial assets  1,313,226  438,633  874,593  -  1,313,226  
Trading securities (a)1,532,463  -  1,527,137  5,326  1,532,463  
Loans held-for-sale (a)133,958  -  3,211  130,747  133,958  
Securities available-for-sale (a) (b)3,672,331  25,870  3,487,502  158,959  3,672,331  
Securities held-to-maturity4,299--5,4515,451
Derivative assets (a)148,153  6,910  141,243  -  148,153  
Other assets:          
Tax credit investments  80,331  -  -  62,768  62,768  
Deferred compensation assets  26,440  26,440  -  -  26,440  
Total other assets  106,771  26,440  -  62,768  89,208  
Nonearning assets:          
Cash & due from banks  282,800  282,800  -  -  282,800  
Fixed income receivables  190,662  -  190,662  -  190,662  
Accrued interest receivable  72,716  -  72,716  -  72,716  
Total nonearning assets  546,178  282,800  263,378  -  546,178  
Total assets$23,961,174  $780,653  $6,297,064  $16,597,783  $23,675,500  
          
Liabilities:          
Deposits:          
Defined maturity  $1,210,417  $-  $1,216,398  $-  $1,216,398  
Undefined maturity  17,428,137  -  17,428,137  -  17,428,137  
Total deposits  18,638,554  -  18,644,535  -  18,644,535  
Trading liabilities (a)813,141  -  813,141  -  813,141  
Short-term financial liabilities:          
Federal funds purchased703,352-703,352-703,352
Securities sold under agreements to repurchase  309,297  -  309,297  -  309,297  
Other short-term borrowings  158,745  -  158,745  -  158,745  
Total short-term financial liabilities  1,171,394  -  1,171,394  -  1,171,394  
Term borrowings:          
Real estate investment trust-preferred  45,913  -  -  49,350  49,350  
Term borrowings - new market tax credit investment  18,000  -  -  18,208  18,208  
Borrowings secured by residential real estate  60,914  -  -  52,568  52,568  
Other long term borrowings  1,445,819  -  1,426,924  -  1,426,924  
Total term borrowings1,570,646-1,426,924120,1261,547,050
Derivative liabilities (a)133,273  7,828  120,440  5,005  133,273  
Other noninterest-bearing liabilities:          
Fixed income payables  91,176  -  91,176  -  91,176  
Accrued interest payable  31,745  -  31,745  -  31,745  
Total other noninterest-bearing liabilities  122,921  -  122,921  -  122,921  
Total liabilities  $22,449,929  $7,828  $22,299,355  $125,131  $22,432,314  

Certain previously reported amounts have been reclassified to agree with current presentation.

  • Classes are detailed in the recurring and nonrecurring measurement tables.
  • Level 3 includes restricted investments in FHLB-Cincinnati stock of $87.9 million and FRB stock of $66.0 million.

Contractual AmountFair Value
(Dollars in thousands)March 31, 2016March 31, 2015March 31, 2016March 31, 2015
Unfunded Commitments:  
Loan commitments$8,042,286  $7,073,470$2,279  $2,439
Standby and other commitments273,666  374,1733,885  5,229