10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2017

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission File Number 001-15185

First Horizon National Corporation

(Exact name of registrant as specified in its charter)

TN	62-0803242
(State or other jurisdiction incorporation of organization)	(IRS Employer Identification No.)
165 MADISON AVENUE MEMPHIS, TENNESSEE	38103
(Address of principal executive office)	(Zip Code)

(Registrant’s telephone number, including area code) (901) 523-4444

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     ☒  Yes    ☐  No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    ☒  Yes    ☐  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐	Non-accelerated filer	☐
Smaller reporting company	☐	Emerging Growth Company	☐	(Do not check if a smaller reporting company)

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    ☐  Yes     ☒ No

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	Outstanding on March 31, 2017
Common Stock, $.625 par value	233,883,250

Table of Contents

FIRST HORIZON NATIONAL CORPORATION

INDEX

Part I. Financial Information	1
Item 1. Financial Statements	1
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	63
Item 3. Quantitative and Qualitative Disclosures about Market Risk	101
Item 4. Controls and Procedures	101
Part II. Other Information	102
Item 1. Legal Proceedings	102
Item 1A. Risk Factors	102
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	102
Item 3. Defaults Upon Senior Securities	102
Item 4. Mine Safety Disclosures	102
Item 5. Other Information	102
Item 6. Exhibits	103
Signatures	104
Exhibit Index	105
Exhibit 10.1
Exhibit 10.2
Exhibit 10.3
Exhibit 10.4
Exhibit 31(a)
Exhibit 31(b)
Exhibit 32(a)
Exhibit 32(b)

PART I.

FINANCIAL INFORMATION

Item 1. Financial Statements
The Consolidated Condensed Statements of Condition (unaudited)	2
The Consolidated Condensed Statements of Income (unaudited)	3
The Consolidated Condensed Statements of Comprehensive Income (unaudited)	4
The Consolidated Condensed Statements of Equity (unaudited)	5
The Consolidated Condensed Statements of Cash Flows (unaudited)	6
The Notes to the Consolidated Condensed Financial Statements (unaudited)	7
Note 1 Financial Information	7
Note 2 Acquisitions and Divestitures	11
Note 3 Investment Securities	12
Note 4 Loans	14
Note 5 Allowance for Loan Losses	21
Note 6 Intangible Assets	22
Note 7 Other Income and Other Expense	23
Note 8 Components of Other Comprehensive Income/(loss)	24
Note 9 Earnings Per Share	25
Note 10 Contingencies and Other Disclosures	26
Note 11 Pension, Savings, and Other Employee Benefits	32
Note 12 Business Segment Information	33
Note 13 Variable Interest Entities	35
Note 14 Derivatives	40
Note 15 Master Netting and Similar Agreements - Repurchase, Reverse Repurchase, and Securities Borrowing Transactions	47
Note 16 Fair Value of Assets & Liabilities	49

This financial information reflects all adjustments that are, in the opinion of management, necessary for a fair presentation of the financial condition and results of operations for the interim periods presented.

1

CONSOLIDATED CONDENSED STATEMENTS OF CONDITION

	First Horizon National Corporation
	(Unaudited)
	March 31			December 31
(Dollars in thousands, except per share amounts)	2017			2016
Assets:
Cash and due from banks	$	369,290		$	373,274
Federal funds sold		31,495			50,838
Securities purchased under agreements to resell (Note 15)		835,222			613,682
Total cash and cash equivalents		1,236,007			1,037,794
Interest-bearing cash		2,106,597			1,060,034
Trading securities		1,167,310			897,071
Loans held-for-sale (a)		105,456			111,248
Securities available-for-sale (Note 3)		3,939,278			3,943,499
Securities held-to-maturity (Note 3)		14,354			14,347
Loans, net of unearned income (Note 4) (b)		19,090,074			19,589,520
Less: Allowance for loan losses (Note 5)		201,968			202,068
Total net loans		18,888,106			19,387,452
Goodwill (Note 6)		191,371			191,371
Other intangible assets, net (Note 6)		19,785			21,017
Fixed income receivables		168,315			57,411
Premises and equipment, net (March 31, 2017 and December 31, 2016 include $6.2 million and $5.8 million, respectively, classified as held-for-sale)		290,497			289,385
Real estate acquired by foreclosure (c)		15,144			16,237
Derivative assets (Note 14)		98,120			121,654
Other assets		1,378,260			1,406,711
Total assets	$	29,618,600		$	28,555,231
Liabilities and equity:
Deposits:
Savings	$	9,573,628		$	9,428,197
Time deposits		1,385,818			1,355,133
Other interest-bearing deposits		6,164,775			5,948,439
Interest-bearing		17,124,221			16,731,769
Noninterest-bearing		6,355,620			5,940,594
Total deposits		23,479,841			22,672,363
Federal funds purchased		504,805			414,207
Securities sold under agreements to repurchase (Note 15)		406,354			453,053
Trading liabilities		848,190			561,848
Other short-term borrowings		79,454			83,177
Term borrowings		1,035,036			1,040,656
Fixed income payables		21,116			21,002
Derivative liabilities (Note 14)		101,347			135,897
Other liabilities		401,997			467,944
Total liabilities		26,878,140			25,850,147
Equity:
First Horizon National Corporation Shareholders’ Equity:
Preferred stock - Series A, non-cumulative perpetual, no par value, liquidation preference of $100,000 per share - (shares authorized - 1,000; shares issued - 1,000 on March 31, 2017 and December 31, 2016)		95,624			95,624
Common stock - $.625 par value (shares authorized - 400,000,000; shares issued - 233,883,250 on March 31, 2017 and 233,623,686 on December 31, 2016)		146,177			146,015
Capital surplus		1,391,777			1,386,636
Undivided profits		1,061,409			1,029,032
Accumulated other comprehensive loss, net (Note 8)		(249,958	)		(247,654	)
Total First Horizon National Corporation Shareholders’ Equity		2,445,029			2,409,653
Noncontrolling interest		295,431			295,431
Total equity		2,740,460			2,705,084
Total liabilities and equity	$	29,618,600		$	28,555,231

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

See accompanying notes to consolidated condensed financial statements.

(a) March 31, 2017 and December 31, 2016 include $17.5 million and $19.3 million, respectively, of held-for-sale consumer mortgage loans secured by residential real estate in process of foreclosure.

(b) March 31, 2017 and December 31, 2016 include $30.3 million and $28.5 million, respectively, of held-to-maturity consumer mortgage loans secured by residential real estate properties in process of foreclosure.

(c) March 31, 2017 and December 31, 2016 include $7.8 million and $8.1 million, respectively, of foreclosed residential real estate.

2

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

	First Horizon National Corporation
	Three Months Ended March 31
(Dollars and shares in thousands except per share data, unless otherwise noted) (Unaudited)	2017			2016
Interest income:
Interest and fees on loans	$	180,464		$	158,423
Interest on investment securities available-for-sale		25,635			24,474
Interest on investment securities held-to-maturity		197			197
Interest on loans held-for-sale		1,283			1,261
Interest on trading securities		6,353			7,751
Interest on other earning assets		4,879			1,558
Total interest income		218,811			193,664
Interest expense:
Interest on deposits:
Savings		9,210			4,190
Time deposits		2,833			2,323
Other interest-bearing deposits		4,143			2,304
Interest on trading liabilities		3,781			4,039
Interest on short-term borrowings		1,392			1,128
Interest on term borrowings		7,744			7,606
Total interest expense		29,103			21,590
Net interest income		189,708			172,074
Provision/(provision credit) for loan losses		(1,000	)		3,000
Net interest income after provision/(provision credit) for loan losses		190,708			169,074
Noninterest income:
Fixed income		50,678			66,977
Deposit transactions and cash management		24,565			26,837
Brokerage, management fees and commissions		11,906			10,415
Trust services and investment management		6,653			6,565
Bankcard income		5,455			5,259
Bank-owned life insurance		3,247			3,389
Debt securities gains/(losses), net (Note 3 and Note 8)		44			1,654
Equity securities gains/(losses), net (Note 3)		—			(80	)
All other income and commissions (Note 7)		14,391			13,289
Total noninterest income		116,939			134,305
Adjusted gross income after provision/(provision credit) for loan losses		307,647			303,379
Noninterest expense:
Employee compensation, incentives, and benefits		134,932			137,151
Occupancy		12,340			12,604
Operations services		10,875			9,900
Computer software		10,799			11,587
Equipment rentals, depreciation, and maintenance		6,351			6,159
FDIC premium expense		5,739			4,921
Legal fees		5,283			4,879
Professional fees		4,746			5,199
Advertising and public relations		4,601			4,973
Communications and courier		3,800			3,750
Contract employment and outsourcing		2,958			2,425
Amortization of intangible assets		1,232			1,300
Repurchase and foreclosure provision/(provision credit)		(238	)		—
All other expense (Note 7)		18,787			22,079
Total noninterest expense		222,205			226,927
Income/(loss) before income taxes		85,442			76,452
Provision/(benefit) for income taxes		27,054			24,239
Net income/(loss)	$	58,388		$	52,213
Net income attributable to noncontrolling interest		2,820			2,851
Net income/(loss) attributable to controlling interest	$	55,568		$	49,362
Preferred stock dividends		1,550			1,550
Net income/(loss) available to common shareholders	$	54,018		$	47,812
Basic earnings/(loss) per share (Note 9)	$	0.23		$	0.20
Diluted earnings/(loss) per share (Note 9)	$	0.23		$	0.20
Weighted average common shares (Note 9)		233,076			234,651
Diluted average common shares (Note 9)		236,855			236,666
Cash dividends declared per common share	$	0.09		$	0.07

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

See accompanying notes to consolidated condensed financial statements.

3

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

	First Horizon National Corporation
	Three Months Ended March 31
(Dollars in thousands) (Unaudited)	2017			2016
Net income/(loss)	$	58,388		$	52,213
Other comprehensive income/(loss), net of tax:
Net unrealized gains/(losses) on securities available-for-sale		(1,563	)		39,160
Net unrealized gains/(losses) on cash flow hedges		(1,914	)		3,465
Net unrealized gains/(losses) on pension and other postretirement plans		1,173			1,126
Other comprehensive income/(loss)		(2,304	)		43,751
Comprehensive income		56,084			95,964
Comprehensive income attributable to noncontrolling interest		2,820			2,851
Comprehensive income attributable to controlling interest	$	53,264		$	93,113
Income tax expense/(benefit) of items included in Other comprehensive income:
Net unrealized gains/(losses) on securities available for sale	$	(970	)	$	24,337
Net unrealized gains/(losses) on cash flow hedges		(1,187	)		2,153
Net unrealized gains/(losses) on pension and other postretirement plans		727			700

See accompanying notes to consolidated condensed financial statements.

4

CONSOLIDATED CONDENSED STATEMENTS OF EQUITY

	First Horizon National Corporation
	2017									2016
(Dollars in thousands except per share data) (Unaudited)	Controlling Interest			Noncontrolling Interest			Total			Controlling Interest			Noncontrolling Interest			Total
Balance, January 1	$	2,409,653		$	295,431		$	2,705,084		$	2,344,155		$	295,431		$	2,639,586
Net income/(loss)		55,568			2,820			58,388			49,362			2,851			52,213
Other comprehensive income/(loss) (a)		(2,304	)		—			(2,304	)		43,751			—			43,751
Comprehensive income		53,264			2,820			56,084			93,113			2,851			95,964
Cash dividends declared:
Preferred stock ($1,550 per share for the three months ended March 31, 2017 and 2016)		(1,550	)		—			(1,550	)		(1,550	)		—			(1,550	)
Common stock ($.09 and $.07 per share for the three months ended March 31, 2017 and 2016, respectively)		(21,354	)		—			(21,354	)		(16,519	)		—			(16,519	)
Common stock repurchased (b)		(2,016	)		—			(2,016	)		(75,763	)		—			(75,763	)
Common stock issued for:
Stock options and restricted stock - equity awards		2,003			—			2,003			157			—			157
Stock-based compensation expense		5,029			—			5,029			3,941			—			3,941
Dividends declared - noncontrolling interest of subsidiary preferred stock		—			(2,820	)		(2,820	)		—			(2,851	)		(2,851	)
Tax benefit/(benefit reversal) - stock based compensation expense		—			—			—			(17	)		—			(17	)
Balance, March 31	$	2,445,029		$	295,431		$	2,740,460		$	2,347,517		$	295,431		$	2,642,948

See accompanying notes to consolidated condensed financial statements.

(a) Due to the nature of the preferred stock issued by FHN and its subsidiaries, all components of Other comprehensive income/(loss) have been attributed solely to FHN as the controlling interest holder.

(b) 2016 includes $75.0 million repurchased under share repurchase programs.

5

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

	First Horizon National Corporation
	Three Months Ended March 31
(Dollars in thousands) (Unaudited)	2017			2016
Operating Activities
Net income/(loss)	$	58,388		$	52,213
Adjustments to reconcile net income/(loss) to net cash provided/(used) by operating activities:
Provision/(provision credit) for loan losses		(1,000	)		3,000
Provision/(benefit) for deferred income taxes		6,920			4,293
Depreciation and amortization of premises and equipment		8,151			8,122
Amortization of intangible assets		1,232			1,300
Net other amortization and accretion		6,207			4,730
Net (increase)/decrease in derivatives		(16,864	)		(321	)
Repurchase and foreclosure provision/(provision credit)		(238	)		—
(Gains)/losses and write-downs on other real estate, net		156			(162	)
Litigation and regulatory matters		(294	)		(375	)
Stock-based compensation expense		5,029			3,941
Equity securities (gains)/losses, net		(44	)		80
Debt securities (gains)/losses, net		—			(1,654	)
Net (gains)/losses on sale/disposal of fixed assets		36			3,684
Loans held-for-sale:
Purchases and originations		(47,445	)		(148	)
Gross proceeds from settlements and sales		54,046			10,311
(Gain)/loss due to fair value adjustments and other		(809	)		(91	)
Net (increase)/decrease in:
Trading securities		(270,495	)		(346,558	)
Fixed income receivables		(110,904	)		(51,194	)
Interest receivable		1,055			(8,352	)
Other assets		16,873			19,223
Net increase/(decrease) in:
Trading liabilities		286,342			172,634
Fixed income payables		114			33,327
Interest payable		7,360			10,206
Other liabilities		(75,014	)		(29,942	)
Total adjustments		(129,586	)		(163,946	)
Net cash provided/(used) by operating activities		(71,198	)		(111,733	)
Investing Activities
Available-for-sale securities:
Sales		44			961
Maturities		135,046			135,503
Purchases		(135,676	)		(159,066	)
Premises and equipment:
Sales		18			1,356
Purchases		(9,318	)		(11,890	)
Proceeds from sales of other real estate		2,135			10,518
Net (increase)/decrease in:
Loans		499,796			102,654
Interests retained from securitizations classified as trading securities		256			1,487
Interest-bearing cash		(1,046,563	)		(349,084	)
Net cash provided/(used) by investing activities		(554,262	)		(267,561	)
Financing Activities
Common stock:
Stock options exercised		2,045			157
Cash dividends paid		(16,465	)		(14,347	)
Repurchase of shares (a)		(2,016	)		(75,763	)
Cash dividends paid - preferred stock - noncontrolling interest		(2,852	)		(2,820	)
Cash dividends paid - Series A preferred stock		(1,550	)		(1,550	)
Term borrowings:
Payments/maturities		(3,306	)		(6,155	)
Net increase/(decrease) in:
Deposits		807,641			360,685
Short-term borrowings		40,176			170,193
Net cash provided/(used) by financing activities		823,673			430,400
Net increase/(decrease) in cash and cash equivalents		198,213			51,106
Cash and cash equivalents at beginning of period		1,037,794			1,031,063
Cash and cash equivalents at end of period	$	1,236,007		$	1,082,169
Supplemental Disclosures
Total interest paid	$	21,478		$	11,223
Total taxes paid		951			617
Total taxes refunded		8,166			2,281
Transfer from loans to other real estate owned		1,198			1,814

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

See accompanying notes to consolidated condensed financial statements.

(a) 2016 includes $75.0 million repurchased under share repurchase programs.

6

Notes to the Consolidated Condensed Financial Statements (Unaudited)

Note 1 – Financial Information

Basis of Accounting. The unaudited interim consolidated condensed financial statements of First Horizon National Corporation (“FHN”), including its subsidiaries, have been prepared in conformity with accounting principles generally accepted in the United States of America and follow general practices within the industries in which it operates. This preparation requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates and assumptions are based on information available as of the date of the financial statements and could differ from actual results. In the opinion of management, all necessary adjustments have been made for a fair presentation of financial position and results of operations for the periods presented. These adjustments are of a normal recurring nature unless otherwise disclosed in this Quarterly Report on Form 10-Q. The operating results for the interim 2017 period are not necessarily indicative of the results that may be expected going forward. For further information, refer to the audited consolidated financial statements in Exhibit 13 to FHN’s Annual Report on Form 10-K for the year ended December 31, 2016.

Summary of Accounting Changes. Effective January 1, 2017, FHN adopted the provisions of Accounting Standards Update (“ASU”) 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which makes several revisions to equity compensation accounting. Under the new guidance all excess tax benefits and deficiencies that occur when an award vests, is exercised, or expires are recognized in income tax expense as discrete period items. Previously, these transactions were typically recorded directly within equity. Consistent with this change, excess tax benefits and deficiencies are no longer included within estimated proceeds when performing the treasury stock method for calculation of diluted earnings per share. Excess tax benefits are also recognized at the time an award is exercised or vests compared to the previous requirement to delay recognition until the deduction reduces taxes payable. The presentation of excess tax benefits in the statement of cash flows shifted to an operating activity from the prior classification as a financing activity.

ASU 2016-09 also provides an accounting policy election to recognize forfeitures of awards as they occur when estimating stock-based compensation expense rather than the previous requirement to estimate forfeitures from inception. Further, ASU 2016-09 permits employers to use a net-settlement feature to withhold taxes on equity compensation awards up to the maximum statutory tax rate without affecting the equity classification of the award. Under previous guidance, withholding of equity awards in excess of the minimum statutory requirement resulted in liability classification for the entire award. The related cash remittance by the employer for employee taxes is treated as a financing activity in the statement of cash flows. Transition to the new guidance was accomplished through a combination of retrospective (cash flows), cumulative-effect adjustment to equity (forfeitures) and prospective methodologies (tax windfalls and shortfalls). FHN estimates, based on currently enacted tax rates, that adoption of ASU 2016-09 in 2017 will result in an incremental effect on tax provision ranging from $3.0 million of tax benefit to $1.0 million of additional tax provision. The actual effects of adoption in 2017 will primarily depend upon the share price of the FHN’s common stock, which affects the vesting of certain performance awards, probability of exercise of certain stock options and the magnitude of windfalls for all awards upon either vesting or exercise. The effects on earnings per share calculations and election to account for forfeitures as incurred have not been significant.

Effective January 1, 2017, FHN early adopted the provisions of ASU 2016-16, “Intra-Entity Transfers of Assets Other Than Inventory” which requires recognition of the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Therefore, ASU 2016-16 reverses the previous requirement to delay recognition of the tax consequences of these transactions until the associated assets are sold to an outside party. Adoption of ASU 2016-16 did not have a significant effect on FHN.

Accounting Changes Issued but Not Currently Effective

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” ASU 2014-09 does not change revenue recognition for financial assets. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This is accomplished through a five-step recognition framework involving 1) the identification of contracts with customers, 2) identification of performance obligations, 3) determination of the transaction price, 4) allocation of the transaction price to the performance obligations and 5) recognition of revenue as performance obligations are satisfied. Additionally, qualitative and quantitative information is required for disclosure regarding the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In February 2016, the FASB issued ASU 2016-08, “Principal versus Agent Considerations,” which provides additional guidance on whether an entity should recognize revenue on a gross or net basis, based on which party controls the specified good or service before that good or service is transferred to a customer. In April 2016, the FASB issued ASU 2016-10, “Identifying Performance Obligations and Licensing,” which clarifies the original guidance included in ASU 2014-09 for identification of the goods or services provided to customers and enhances the implementation guidance for licensing arrangements. ASU 2016-12, “Narrow-Scope Improvements and Practical Expedients,” was issued in May 2016 to provide additional guidance for the implementation and application of ASU 2014-09. “Technical Corrections and Improvements” ASU 2016-20 was issued in December 2016 and provides further guidance on certain issues. These ASUs are effective in annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is permitted for annual

7

Note 1 – Financial Information (Continued)

reporting periods beginning after December 15, 2016, and associated interim periods. Transition to the new requirements may be made by retroactively revising prior financial statements (with certain practical expedients permitted) or by a cumulative effect through retained earnings. If the latter option is selected, additional disclosures are required for comparability. FHN will not early adopt these ASUs and is evaluating their effects on its revenue recognition practices. Currently, FHN anticipates that it will elect to adopt the provisions of the revenue recognition standards through a cumulative effect to retained earnings with comparability disclosures provided throughout 2018.

In February 2017, the FASB issued ASU 2017-05, “Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets” which clarifies the meaning and application of the term in substance nonfinancial asset in transactions involving both financial and nonfinancial assets. If substantially all of the fair value of the assets that are promised to the counterparty in a contract are concentrated in nonfinancial assets, then all of the financial assets promised to the counterparty are in substance nonfinancial assets within the scope of revenue recognition guidance for nonfinancial assets. ASU 2017-05 also clarifies that an entity should identify each distinct nonfinancial asset or in substance nonfinancial asset promised to a counterparty and derecognize each asset when a counterparty obtains control of it with the amount of revenue recognized based on the allocation guidance provided in ASU 2014-09. ASU 2017-05 also requires an entity to derecognize a distinct nonfinancial asset or distinct in substance nonfinancial asset in a partial sale transaction when it 1) does not have (or ceases to have) a controlling financial interest in the legal entity that holds the asset in accordance with Topic 810 and 2) transfers control of the asset in accordance with the provisions of ASU 2014-09. Once an entity transfers control of a distinct nonfinancial asset or distinct in substance nonfinancial asset, it is required to measure any noncontrolling interest it receives (or retains) at fair value. ASU 2017-05 has the same effective date and transition provisions as ASU 2014-09 and the two standards must be adopted simultaneously although the transition methods may be different. FHN is evaluating the effects of ASU 2017-05 on its revenue recognition practices. Currently, FHN anticipates that it will elect to adopt the provisions of ASU 2017-05 through a cumulative effect to retained earnings with comparability disclosures provided throughout 2018.

In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 makes several revisions to the accounting, presentation and disclosure for financial instruments. Equity investments (except those accounted for under the equity method, those that result in consolidation of the investee, and those held by entities subject to specialized industry accounting which already apply fair value through earnings) are required to be measured at fair value with changes in fair value recognized in net income. This excludes FRB and FHLB stock holdings which are specifically exempted from the provisions of ASU 2016-01. An entity may elect to measure equity investments that do not have readily determinable market values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar instruments from the same issuer. ASU 2016-01 also requires a qualitative impairment review for equity investments without readily determinable fair values, with measurement at fair value required if impairment is determined to exist. For liabilities for which fair value has been elected, ASU 2016-01 revises current accounting to record the portion of fair value changes resulting from instrument-specific credit risk within other comprehensive income rather than earnings. FHN has not elected fair value accounting for any existing financial liabilities. Additionally, ASU 2016-01 clarifies that the need for a valuation allowance on a deferred tax asset related to available-for-sale securities should be assessed in combination with all other deferred tax assets rather than being assessed in isolation. ASU 2016-01 also makes several changes to existing fair value presentation and disclosure requirements, including a provision that all disclosures must use an exit price concept in the determination of fair value. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Transition will be through a cumulative effect adjustment to retained earnings for equity investments with readily determinable fair values. Equity investments without readily determinable fair values, for which the accounting election is made, will have any initial fair value marks recorded through earnings prospectively after adoption.

Upon adoption, FHN will reclassify all equity investments out of available-for-sale securities, leaving only debt securities within this classification. FHN has evaluated the nature of its current equity investments and determined that substantially all qualify for the election available to assets without readily determinable fair values, including its holdings of Visa Class B shares. Accordingly, FHN intends to apply this election and any fair value marks for these investments will be recognized through earnings on a prospective basis subsequent to adoption. FHN continues to evaluate the appropriate characteristics of “similar” instruments as well as related valuation inputs and methodologies for its equity investments without readily determinable fair values. The requirements of ASU 2016-01 related to assessment of deferred tax assets and disclosure of the fair value of financial instruments will not have a significant effect on FHN because its current accounting and disclosure practices conform to the requirements of ASU 2016-01. FHN also continues to evaluate the impact of ASU 2016-01 on other aspects of its current accounting and disclosure practices.

In February 2016, the FASB issued ASU 2016-02, “Leases,” which requires a lessee to recognize in its statement of condition a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. ASU 2016-02 leaves lessor accounting largely unchanged from prior standards. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. All other leases must be classified as financing or operating leases which depends on the relationship of the lessee’s rights to the economic value of the leased asset. For finance leases, interest on the lease liability is recognized separately from amortization

8

Note 1 – Financial Information (Continued)

of the right-of-use asset in earnings, resulting in higher expense in the earlier portion of the lease term. For operating leases, a single lease cost is calculated so that the cost of the lease is allocated over the lease term on a generally straight-line basis.

In transition to ASU 2016-02, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply, which would result in continuing to account for leases that commence before the effective date in accordance with previous requirements (unless the lease is modified) except that lessees are required to recognize a right-of-use asset and a lease liability for all operating leases at each reporting date based on the present value of the remaining minimum rental payments that were tracked and disclosed under previous requirements. ASU 2016-02 also requires expanded qualitative and quantitative disclosures to assess the amount, timing, and uncertainty of cash flows arising from lease arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. FHN is evaluating the impact of ASU 2016-02 on its current accounting and disclosure practices.

In March 2016, the FASB issued ASU 2016-04, “Recognition of Breakage of Certain Prepaid Stored-Value Products,” which indicates that liabilities related to the sale of prepaid stored-value products are considered financial liabilities and should have a breakage estimate applied for estimated unused funds. ASU 2016-04 does not apply to stored-value products that can only be redeemed for cash, are subject to escheatment or are linked to a segregated bank account. ASU 2016-04 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. FHN is evaluating the impact of ASU 2016-04 on its current accounting and disclosure practices.

In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments,” which revises the measurement and recognition of credit losses for assets measured at amortized cost (e.g., held-to-maturity (“HTM”) loans and debt securities) and available-for-sale (“AFS”) debt securities. Under ASU 2016-13, for assets measured at amortized cost, the current expected credit loss (“CECL”) is measured as the difference between amortized cost and the net amount expected to be collected. This represents a departure from existing GAAP as the “incurred loss” methodology for recognizing credit losses delays recognition until it is probable a loss has been incurred. The measurement of current expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Additionally, current disclosures of credit quality indicators in relation to the amortized cost of financing receivables will be further disaggregated by year of origination. ASU 2016-13 leaves the methodology for measuring credit losses on AFS debt securities largely unchanged, with the maximum credit loss representing the difference between amortized cost and fair value. However, such credit losses will be recognized through an allowance for credit losses, which permits recovery of previously recognized credit losses if circumstances change.

ASU 2016-13 also revises the recognition of credit losses for purchased financial assets with a more-than insignificant amount of credit deterioration since origination (“PCD assets”). For PCD assets, the initial allowance for credit losses is added to the purchase price. Only subsequent changes in the allowance for credit losses are recorded as a credit loss expense for PCD assets. Interest income for PCD assets will be recognized based on the effective interest rate, excluding the discount embedded in the purchase price that is attributable to the acquirer’s assessment of credit losses at acquisition. Currently, credit losses for purchased credit-impaired assets are included in the initial basis of the assets with subsequent declines in credit resulting in expense while subsequent improvements in credit are reflected as an increase in the future yield from the assets.

The provisions of ASU 2016-13 will be generally adopted through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in the year of adoption. Prospective implementation is required for debt securities for which an other-than-temporary-impairment (“OTTI”) had been previously recognized. Amounts previously recognized in accumulated other comprehensive income (“AOCI”) as of the date of adoption that relate to improvements in cash flows expected to be collected will continue to be accreted into income over the remaining life of the asset. Recoveries of amounts previously written off relating to improvements in cash flows after the date of adoption will be recorded in earnings when received. A prospective transition approach will be used for existing PCD assets where, upon adoption, the amortized cost basis will be adjusted to reflect the addition of the allowance for credit losses. Thus, an entity will not be required to reassess its purchased financial assets that exist as of the date of adoption to determine whether they would have met at acquisition the new criteria of more-than-insignificant credit deterioration since origination. An entity will accrete the remaining noncredit discount (based on the revised amortized cost basis) into interest income at the effective interest rate at the adoption date.

ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted in fiscal years beginning after December 15, 2018. FHN is still evaluating the impact of ASU 2016-13 on its current accounting and disclosure practices.

In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments,” which clarifies multiple cash flow presentation issues including providing guidance as to classification on the cash flow statement for certain cash receipts and cash payments where diversity in practice exists. ASU 2016-15 is effective for fiscal years beginning after December 15,

9

Note 1 – Financial Information (Continued)

2017, including interim periods within those fiscal years. The provisions of ASU 2016-15 will be applied retroactively and will result in proceeds from bank-owned life insurance (“BOLI”) being classified as an investing activity rather than their prior classification as an operating activity.

In March 2017, the FASB issued ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” which requires the disaggregation of the service cost component from the other components of net benefit cost for pension and postretirement plans. Service cost must be included in the same income statement line item as other compensation-related expenses. All other components of net benefit cost are required to be presented in the income statement separately from the service cost component, with disclosure of the line items where these amounts are recorded. The presentation requirements of ASU 2017-07 must be applied retrospectively and adoption is required for annual periods beginning after December 15, 2017, including interim periods within those annual periods. FHN’s disclosures for pension and postretirement costs provide details of the service cost and all other components for expenses recognized for its applicable benefit plans. These amounts are currently included in Employee compensation, incentives, and benefits expense in the Consolidated Condensed Statements of Income. Upon adoption of ASU 2017-07 FHN will reclassify the expense components other than service cost into All other expense and revise its disclosures accordingly. The amounts to be reclassified are presented in Note 11—Pension, Savings, and Other Employee Benefits in this Quarterly Report on Form 10-Q for the quarter ended March 31, 2017 and in Note 18—Pension, Savings, and Other Employee Benefits in Exhibit 13 to FHN’s Annual Report on Form 10-K for the year ended December 31, 2016.

In March 2017, the FASB issued ASU 2017-08, “Premium Amortization on Purchased Callable Debt Securities” which shortens the amortization period for securities that have explicit, noncontingent call features that are callable at fixed prices and on preset dates. In contrast to the current requirement for premium amortization to extend to the contractual maturity date, ASU 2017-08 requires the premium to be amortized to the earliest call date. ASU 2017-08 does not change the amortization of discounts, which will continue to be amortized to maturity. The new guidance does not apply to debt securities where the prepayment date is not preset or the price is not known in advance, which includes debt securities that qualify for amortization based on estimated prepayment rates. ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 with early adoption permitted. Transition is accomplished through a cumulative-effect adjustment directly to retained earnings as of the beginning of the year of adoption. Based upon the current composition of its debt securities portfolios, FHN does not anticipate a significant effect upon adoption.

10

Note 2 – Acquisitions and Divestitures

On May 4, 2017, FHN and Capital Bank Financial Corp. (“Capital Bank”) announced that they had entered into an agreement and plan of merger. Under the agreement FHN will acquire Capital Bank, which is headquartered in Charlotte, North Carolina, and reported approximately $10 billion of assets at March 31, 2017. At the time of announcement Capital Bank operated 193 branches in North and South Carolina, Tennessee, Florida and Virginia. Collectively, Capital Bank shareholders will receive approximately $411 million in cash plus FHN common shares which are expected to represent approximately 29 percent of FHN’s outstanding common shares immediately after consummation of the merger. The total transaction value, measured at the time of announcement, was approximately $2.2 billion. The agreement calls for two members of Capital Bank’s board of directors to join FHN’s board after closing. The transaction is expected to close in fourth quarter 2017, subject to regulatory approvals, approval by shareholders of FHN and of Capital Bank, and other customary conditions.

On April 3, 2017, FTN Financial acquired substantially all of the assets and assumed substantially all of the liabilities of Coastal Securities, Inc. (“Coastal”), a national leader in the trading, securitization, and analysis of Small Business Administration (“SBA”) loans, for approximately $130 million in cash. Coastal, which was based in Houston, TX, also traded United States Department of Agriculture (“USDA”) loans and fixed income products and provided municipal underwriting and advisory services to its clients. Coastal’s government-guaranteed loan products, combined with FTN Financial’s existing SBA trading activities, have established an additional major product sector for FTN Financial.

On September 16, 2016, FTBNA acquired $537.4 million in unpaid principal balance (“UPB”) of restaurant franchise loans from GE Capital’s Southeast and Southwest regional portfolios. Subsequent to the acquisition the acquired loans were combined with existing FTBNA relationships to establish a franchise finance specialty banking business.

In addition to the transactions mentioned above, FHN acquires or divests assets from time to time in transactions that are considered business combination or divestitures but are not material to FHN individually or in the aggregate.

11

Note 3 – Investment Securities

The following tables summarize FHN’s investment securities on March 31, 2017 and December 31, 2016:

	March 31, 2017
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities available-for-sale:
U.S. treasuries	$	100	$	—	$	—		$	100
Government agency issued mortgage-backed securities (“MBS”)		2,171,843		13,675		(25,596	)		2,159,922
Government agency issued collateralized mortgage obligations (“CMO”)		1,610,857		4,980		(23,526	)		1,592,311
Equity and other (a)		186,948		—		(3	)		186,945
Total securities available-for-sale (b)	$	3,969,748	$	18,655	$	(49,125	)	$	3,939,278
Securities held-to-maturity:
States and municipalities	$	4,354	$	386	$	—		$	4,740
Corporate bonds		10,000		63		—			10,063
Total securities held-to-maturity	$	14,354	$	449	$	—		$	14,803

(a) Includes restricted investments in FHLB-Cincinnati stock of $87.9 million and FRB stock of $68.6 million. The remainder is money market, mutual funds, and cost method investments.

(b) Includes $3.5 billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes.

	December 31, 2016
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities available-for-sale:
U.S. treasuries	$	100	$	—	$	—		$	100
Government agency issued MBS		2,217,593		14,960		(23,866	)		2,208,687
Government agency issued CMO		1,566,986		4,909		(23,937	)		1,547,958
Equity and other (a)		186,756		—		(2	)		186,754
Total securities available-for-sale (b)	$	3,971,435	$	19,869	$	(47,805	)	$	3,943,499
Securities held-to-maturity:
States and municipalities	$	4,347	$	393	$	—		$	4,740
Corporate bonds		10,000		33		—			10,033
Total securities held-to-maturity	$	14,347	$	426	$	—		$	14,773

(a) Includes restricted investments in FHLB-Cincinnati stock of $87.9 million and FRB stock of $68.6 million. The remainder is money market, mutual funds, and cost method investments.

(b) Includes $3.3 billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes.

The amortized cost and fair value by contractual maturity for the available-for-sale and held-to-maturity securities portfolios on March 31, 2017 are provided below:

	Held-to-Maturity				Available-for-Sale
(Dollars in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Within 1 year	$	—	$	—	$	100	$	100
After 1 year; within 5 years		—		—		—		—
After 5 years; within 10 years		10,000		10,063		—		—
After 10 years		4,354		4,740		—		—
Subtotal		14,354		14,803		100		100
Government agency issued MBS and CMO (a)		—		—		3,782,700		3,752,233
Equity and other		—		—		186,948		186,945
Total	$	14,354	$	14,803	$	3,969,748	$	3,939,278

(a) Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

12

Note 3 – Investment Securities (Continued)

The table below provides information on gross gains and gross losses from investment securities for the three months ended March 31:

	Available-for-sale
(Dollars in thousands)	2017		2016
Gross gains on sales of securities	$	44	$	3,837
Gross (losses) on sales of securities		—		(2,263	)
Net gain/(loss) on sales of securities (a)	$	44	$	1,574

(a) Cash proceeds for the three months ended March 31, 2017 were not material. Cash proceeds for the three months ended March 31, 2016 were $1.0 million. 2016 includes a $1.7 million gain from an exchange of approximately $294 million of AFS debt securities.

The following tables provide information on investments within the available-for-sale portfolio that had unrealized losses as of March 31, 2017 and December 31, 2016:

	As of March 31, 2017
	Less than 12 months					12 months or longer					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(Dollars in thousands)	Value		Losses			Value		Losses			Value		Losses
Government agency issued CMO	$	1,068,010	$	(18,525	)	$	111,813	$	(5,001	)	$	1,179,823	$	(23,526	)
Government agency issued MBS		1,846,348		(25,596	)		—		—			1,846,348		(25,596	)
Total debt securities		2,914,358		(44,121	)		111,813		(5,001	)		3,026,171		(49,122	)
Equity		6		(3	)		—		—			6		(3	)
Total temporarily impaired securities	$	2,914,364	$	(44,124	)	$	111,813	$	(5,001	)	$	3,026,177	$	(49,125	)

	As of December 31, 2016
	Less than 12 months					12 months or longer					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(Dollars in thousands)	Value		Losses			Value		Losses			Value		Losses
Government agency issued CMO	$	1,059,471	$	(19,052	)	$	116,527	$	(4,885	)	$	1,175,998	$	(23,937	)
Government agency issued MBS		1,912,126		(23,866	)		—		—			1,912,126		(23,866	)
Total debt securities		2,971,597		(42,918	)		116,527		(4,885	)		3,088,124		(47,803	)
Equity		7		(2	)		—		—			7		(2	)
Total temporarily impaired securities	$	2,971,604	$	(42,920	)	$	116,527	$	(4,885	)	$	3,088,131	$	(47,805	)

FHN has reviewed investment securities that were in unrealized loss positions in accordance with its accounting policy for OTTI and does not consider them other-than-temporarily impaired. For debt securities with unrealized losses, FHN does not intend to sell them and it is more-likely-than-not that FHN will not be required to sell them prior to recovery. The decline in value is primarily attributable to changes in interest rates and not credit losses. For equity securities, FHN has both the ability and intent to hold these securities for the time necessary to recover the amortized cost.

13

Note 4 – Loans

The following table provides the balance of loans by portfolio segment as of March 31, 2017 and December 31, 2016:

	March 31		December 31
(Dollars in thousands)	2017		2016
Commercial:
Commercial, financial, and industrial	$	11,703,996	$	12,148,087
Commercial real estate		2,173,311		2,135,523
Consumer:
Consumer real estate (a)		4,456,811		4,523,752
Permanent mortgage		409,235		423,125
Credit card & other		346,721		359,033
Loans, net of unearned income	$	19,090,074	$	19,589,520
Allowance for loan losses		201,968		202,068
Total net loans	$	18,888,106	$	19,387,452

(a) Balances as of March 31, 2017 and December 31, 2016, include $32.5 million and $35.9 million of restricted real estate loans, respectively. See Note 13—Variable Interest Entities for additional information.

COMPONENTS OF THE LOAN PORTFOLIO

The loan portfolio is disaggregated into segments and then further disaggregated into classes for certain disclosures. GAAP defines a portfolio segment as the level at which an entity develops and documents a systematic method for determining its allowance for credit losses. A class is generally determined based on the initial measurement attribute (i.e., amortized cost or purchased credit-impaired), risk characteristics of the loan, and FHN’s method for monitoring and assessing credit risk. Commercial loan portfolio segments include commercial, financial and industrial (“C&I”) and commercial real estate (“CRE”). Commercial classes within C&I include general C&I, loans to mortgage companies, the trust preferred loans (“TRUPS”) (i.e. long-term unsecured loans to bank and insurance—related businesses) portfolio and purchased credit-impaired (“PCI”) loans. Loans to mortgage companies include commercial lines of credit to qualified mortgage companies primarily for the temporary warehousing of eligible mortgage loans prior to the borrower’s sale of those mortgage loans to third party investors. Commercial classes within CRE include income CRE, residential CRE and PCI loans. Consumer loan portfolio segments include consumer real estate, permanent mortgage, and the credit card and other portfolio. Consumer classes include home equity lines of credit (“HELOCs”), real estate (“R/E”) installment and PCI loans within the consumer real estate segment, permanent mortgage (which is both a segment and a class), and credit card and other.

Concentrations

FHN has a concentration of residential real estate loans (25 percent of total loans), the majority of which is in the consumer real estate segment (23 percent of total loans). Loans to finance and insurance companies total $2.6 billion (22 percent of the C&I portfolio, or 13 percent of the total loans). FHN had loans to mortgage companies totaling $1.5 billion (13 percent of the C&I segment, or 8 percent of total loans) as of March 31, 2017. As a result, 35 percent of the C&I segment is sensitive to impacts on the financial services industry.

Purchased Credit-Impaired Loans

The following table presents a rollforward of the accretable yield for the three months ended March 31, 2017 and 2016:

	Three Months Ended March 31
(Dollars in thousands)	2017			2016
Balance, beginning of period	$	6,871		$	8,542
Accretion		(851	)		(1,151	)
Adjustment for payoffs		(273	)		(1,777	)
Adjustment for charge-offs		—			(663	)
Adjustment for pool excess recovery (a)		(222	)		—
Increase/(decrease) in accretable yield (b)		(295	)		4,007
Other		(32	)		—
Balance, end of period	$	5,198		$	8,958

(a) Represents the removal of accretable difference for the remaining loans in a pool which is now in a recovery state.

(b) Includes changes in the accretable yield due to both transfers from the nonaccretable difference and the impact of changes in the expected timing of the cash flows.

14

Note 4 – Loans (Continued)

At March 31, 2017, the ALLL related to PCI loans was $.6 million compared to $.7 million at December 31, 2016. The loan loss provision amounts related to PCI loans recognized during the three months ended March 31, 2017, and 2016, respectively, were not significant.

The following table reflects the outstanding principal balance and carrying amounts of the acquired PCI loans as of March 31, 2017 and December 31, 2016:

	March 31, 2017				December 31, 2016
(Dollars in thousands)	Carrying value		Unpaid balance		Carrying value		Unpaid balance
Commercial, financial and industrial	$	38,088	$	39,257	$	40,368	$	41,608
Commercial real estate		4,096		5,466		4,763		6,514
Consumer real estate		1,072		1,442		1,172		1,677
Credit card and other		53		64		52		64
Total	$	43,309	$	46,229	$	46,355	$	49,863

Impaired Loans

The following tables provide information at March 31, 2017 and December 31, 2016, by class related to individually impaired loans and consumer TDRs, regardless of accrual status. Recorded investment is defined as the amount of the investment in a loan, before valuation allowance but which does reflect any direct write-down of the investment. For purposes of this disclosure, PCI loans and the TRUPs valuation allowance have been excluded.

							Three Months Ended March 31
	March 31, 2017						2017				2016
			Unpaid				Average		Interest		Average		Interest
	Recorded		Principal		Related		Recorded		Income		Recorded		Income
(Dollars in thousands)	Investment		Balance		Allowance		Investment		Recognized		Investment		Recognized
Impaired loans with no related allowance recorded:
Commercial:
General C&I	$	10,395	$	16,612	$	—	$	10,407	$	—	$	9,224	$	—
Income CRE		—		—		—		—		—		2,468		—
Total	$	10,395	$	16,612	$	—	$	10,407	$	—	$	11,692	$	—
Consumer:
HELOC (a)	$	10,724	$	22,020	$	—	$	11,054	$	—	$	10,921	$	—
R/E installment loans (a)		3,916		4,987		—		3,937		—		4,434		—
Permanent mortgage (a)		5,803		8,607		—		5,557		—		4,436		—
Total	$	20,443	$	35,614	$	—	$	20,548	$	—	$	19,791	$	—
Impaired loans with related allowance recorded:
Commercial:
General C&I	$	31,392	$	31,532	$	2,850	$	32,863	$	215	$	24,921	$	87
TRUPS		3,183		3,700		925		3,196		—		3,323		—
Income CRE		1,803		2,181		61		1,817		14		5,138		20
Residential CRE		1,293		1,761		131		1,293		5		1,397		6
Total	$	37,671	$	39,174	$	3,967	$	39,169	$	234	$	34,779	$	113
Consumer:
HELOC	$	81,438	$	83,888	$	16,641	$	83,075	$	564	$	88,580	$	487
R/E installment loans		50,394		51,317		12,060		51,902		318		59,971		317
Permanent mortgage		82,940		94,755		11,532		85,778		615		95,232		547
Credit card & other		269		269		122		288		2		360		3
Total	$	215,041	$	230,229	$	40,355	$	221,043	$	1,499	$	244,143	$	1,354
Total commercial	$	48,066	$	55,786	$	3,967	$	49,576	$	234	$	46,471	$	113
Total consumer	$	235,484	$	265,843	$	40,355	$	241,591	$	1,499	$	263,934	$	1,354
Total impaired loans	$	283,550	$	321,629	$	44,322	$	291,167	$	1,733	$	310,405	$	1,467

(a) All discharged bankruptcy loans are charged down to an estimate of net realizable value and do not carry any allowance.

15

Note 4 – Loans (Continued)

	December 31, 2016
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
(Dollars in thousands)	Investment		Balance		Allowance		Investment		Recognized
Impaired loans with no related allowance recorded:
Commercial:
General C&I	$	10,419	$	16,636	$	—	$	12,009	$	—
Income CRE		—		—		—		1,543		—
Total	$	10,419	$	16,636	$	—	$	13,552	$	—
Consumer:
HELOC (a)	$	11,383	$	21,662	$	—	$	11,168	$	—
R/E installment loans (a)		3,957		4,992		—		4,255		—
Permanent mortgage (a)		5,311		7,899		—		4,418		—
Total	$	20,651	$	34,553	$	—	$	19,841	$	—
Impaired loans with related allowance recorded:
Commercial:
General C&I	$	34,334	$	34,470	$	3,294	$	30,836	$	902
TRUPS		3,209		3,700		925		3,274		—
Income CRE		1,831		2,209		62		3,757		70
Residential CRE		1,293		1,761		132		1,360		22
Total	$	40,667	$	42,140	$	4,413	$	39,227	$	994
Consumer:
HELOC	$	84,711	$	87,126	$	15,927	$	87,659	$	2,092
R/E installment loans		53,409		54,559		12,875		57,906		1,370
Permanent mortgage		88,615		100,983		12,470		91,838		2,310
Credit card & other		306		306		133		345		13
Total	$	227,041	$	242,974	$	41,405	$	237,748	$	5,785
Total commercial	$	51,086	$	58,776	$	4,413	$	52,779	$	994
Total consumer	$	247,692	$	277,527	$	41,405	$	257,589	$	5,785
Total impaired loans	$	298,778	$	336,303	$	45,818	$	310,368	$	6,779

(a) All discharged bankruptcy loans are charged down to an estimate of net realizable value and do not carry any allowance.

Asset Quality Indicators

FHN employs a dual grade commercial risk grading methodology to assign an estimate for the probability of default (“PD”) and the loss given default (“LGD”) for each commercial loan using factors specific to various industry, portfolio, or product segments that result in a rank ordering of risk and the assignment of grades PD 1 to PD 16. This credit grading system is intended to identify and measure the credit quality of the loan portfolio by analyzing the migration of loans between grading categories. It is also integral to the estimation methodology utilized in determining the allowance for loan losses since an allowance is established for pools of commercial loans based on the credit grade assigned. Each PD grade corresponds to an estimated one-year default probability percentage; a PD 1 has the lowest expected default probability, and probabilities increase as grades progress down the scale. PD 1 through PD 12 are “pass” grades. PD grades 13-16 correspond to the regulatory-defined categories of special mention (13), substandard (14), doubtful (15), and loss (16). Pass loan grades are required to be reassessed annually or earlier whenever there has been a material change in the financial condition of the borrower or risk characteristics of the relationship. All commercial loans over $1 million and certain commercial loans over $500,000 that are graded 13 or worse are reassessed on a quarterly basis. Loan grading discipline is regularly reviewed internally by Credit Assurance Services to determine if the process continues to result in accurate loan grading across the portfolio. FHN may utilize availability of guarantors/sponsors to support lending decisions during the credit underwriting process and when determining the assignment of internal loan grades. LGD grades are assigned based on a scale of 1-12 and represent FHN’s expected recovery based on collateral type in the event a loan defaults. See Note 5 – Allowance for Loan Losses for further discussion on the credit grading system.

16

Note 4 – Loans (Continued)

The following tables provide the balances of commercial loan portfolio classes with associated allowance, disaggregated by PD grade as of March 31, 2017 and December 31, 2016:

	March 31, 2017
(Dollars in thousands)	General C&I		Loans to Mortgage Companies		TRUPS (a)		Income CRE		Residential CRE		Total		Percentage of Total			Allowance for Loan Losses
PD Grade:
1	$	478,025	$	—	$	—	$	610	$	—	$	478,635		3	%	$	78
2		891,450		—		—		11,293		81		902,824		7			442
3		403,403		398,860		—		160,115		—		962,378		7			239
4		998,015		227,257		—		242,069		221		1,467,562		11			879
5		1,269,384		139,434		—		426,147		333		1,835,298		13			7,260
6		1,535,573		521,253		—		368,073		8,072		2,432,971		17			10,600
7		1,479,242		169,444		—		396,654		2,161		2,047,501		15			12,767
8		1,042,772		49,588		—		352,370		4,383		1,449,113		10			24,532
9		641,463		4,643		—		82,734		3,357		732,197		5			14,396
10		344,633		4,499		—		35,489		9,695		394,316		3			8,510
11		228,258		—		—		17,501		5,454		251,213		2			6,289
12		162,238		13,956		—		15,831		2,965		194,990		1			6,862
13		115,844		—		304,236		4,755		128		424,963		3			3,757
14,15,16		197,230		48		—		14,395		1,183		212,856		2			23,177
Collectively evaluated for impairment		9,787,530		1,528,982		304,236		2,128,036		38,033		13,786,817		99			119,788
Individually evaluated for impairment		41,787		—		3,183		1,803		1,293		48,066		1			3,967
Purchased credit-impaired loans		38,278		—		—		4,052		94		42,424		—			240
Total commercial loans	$	9,867,595	$	1,528,982	$	307,419	$	2,133,891	$	39,420	$	13,877,307		100	%	$	123,995

	December 31, 2016
(Dollars in thousands)	General C&I		Loans to Mortgage Companies		TRUPS (a)		Income CRE		Residential CRE		Total		Percentage of Total			Allowance for Loan Losses
PD Grade:
1	$	465,179	$	—	$	—	$	1,078	$	—	$	466,257		3	%	$	77
2		791,183		—		—		11,742		87		803,012		6			403
3		491,386		462,486		—		153,670		—		1,107,542		8			304
4		978,282		332,107		—		222,422		—		1,532,811		11			953
5		1,232,401		275,209		—		365,653		702		1,873,965		13			6,670
6		1,540,519		614,109		—		338,344		9,338		2,502,310		17			10,403
7		1,556,117		317,283		—		352,390		2,579		2,228,369		16			14,010
8		963,359		30,974		—		425,503		2,950		1,422,786		10			25,986
9		611,774		4,299		—		105,277		4,417		725,767		5			13,857
10		355,359		8,663		—		50,484		9,110		423,616		3			8,400
11		238,230		—		—		20,600		6,541		265,371		2			6,556
12		170,531		—		—		15,395		4,168		190,094		1			6,377
13		121,276		—		304,236		6,748		311		432,571		3			4,225
14,15,16		194,572		59		—		16,313		1,659		212,603		1			20,297
Collectively evaluated for impairment		9,710,168		2,045,189		304,236		2,085,619		41,862		14,187,074		99			118,518
Individually evaluated for impairment		44,753		—		3,209		1,831		1,293		51,086		1			4,413
Purchased credit-impaired loans		40,532		—		—		4,583		335		45,450		—			319
Total commercial loans	$	9,795,453	$	2,045,189	$	307,445	$	2,092,033	$	43,490	$	14,283,610		100	%	$	123,250

(a) Balances as of March 31, 2017 and December 31, 2016, presented net of a $25.5 million valuation allowance. Based on the underlying structure of the notes, the highest possible internal grade is “13”.

17

Note 4 – Loans (Continued)

The consumer portfolio is comprised primarily of smaller-balance loans which are very similar in nature in that most are standard products and are backed by residential real estate. Because of the similarities of consumer loan-types, FHN is able to utilize the Fair Isaac Corporation (“FICO”) score, among other attributes, to assess the credit quality of consumer borrowers. FICO scores are refreshed on a quarterly basis in an attempt to reflect the recent risk profile of the borrowers. Accruing delinquency amounts are indicators of asset quality within the credit card and other consumer portfolio.

The following table reflects the percentage of balances outstanding by average, refreshed FICO scores for the HELOC, real estate installment, and permanent mortgage classes of loans as of March 31, 2017 and December 31, 2016:

	March 31, 2017									December 31, 2016
	HELOC			R/E Installment Loans			Permanent Mortgage			HELOC			R/E Installment Loans			Permanent Mortgage
FICO score 740 or greater		57.6	%		70.1	%		45.5	%		56.9	%		70.3	%		45.0	%
FICO score 720-739		8.8			8.0			8.7			8.8			8.3			9.5
FICO score 700-719		8.2			7.2			9.5			8.6			6.8			9.2
FICO score 660-699		12.6			9.0			16.8			13.2			8.4			17.1
FICO score 620-659		5.7			3.0			8.9			5.6			3.5			9.1
FICO score less than 620 (a)		7.1			2.7			10.6			6.9			2.7			10.1
Total		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

(a) For this group, a majority of the loan balances had FICO scores at the time of the origination that exceeded 620 but have since deteriorated as the loans have seasoned.

Nonaccrual and Past Due Loans

The following table reflects accruing and non-accruing loans by class on March 31, 2017:

	Accruing								Non-Accruing
(Dollars in thousands)	Current		30-89 Days Past Due		90+ Days Past Due		Total Accruing		Current		30-89 Days Past Due		90+ Days Past Due		Total Non- Accruing		Total Loans
Commercial (C&I):
General C&I	$	9,781,688	$	20,073	$	101	$	9,801,862	$	14,511	$	113	$	12,831	$	27,455	$	9,829,317
Loans to mortgage companies		1,528,934		—		—		1,528,934		—		—		48		48		1,528,982
TRUPS (a)		304,236		—		—		304,236		—		—		3,183		3,183		307,419
Purchased credit-impaired loans		38,045		8		225		38,278		—		—		—		—		38,278
Total commercial (C&I)		11,652,903		20,081		326		11,673,310		14,511		113		16,062		30,686		11,703,996
Commercial real estate:
Income CRE		2,128,111		128		—		2,128,239		100		—		1,500		1,600		2,129,839
Residential CRE		38,531		—		—		38,531		—		—		795		795		39,326
Purchased credit-impaired loans		3,605		541		—		4,146		—		—		—		—		4,146
Total commercial real estate		2,170,247		669		—		2,170,916		100		—		2,295		2,395		2,173,311
Consumer real estate:
HELOC		1,521,042		16,612		10,247		1,547,901		46,661		4,187		8,345		59,193		1,607,094
R/E installment loans		2,814,663		7,056		4,427		2,826,146		17,477		1,993		2,679		22,149		2,848,295
Purchased credit-impaired loans		1,328		—		94		1,422		—		—		—		—		1,422
Total consumer real estate		4,337,033		23,668		14,768		4,375,469		64,138		6,180		11,024		81,342		4,456,811
Permanent mortgage		369,882		4,802		5,718		380,402		14,166		1,006		13,661		28,833		409,235
Credit card & other:
Credit card		182,129		1,393		1,449		184,971		—		—		—		—		184,971
Other		160,929		482		150		161,561		—		—		136		136		161,697
Purchased credit-impaired loans		53		—		—		53		—		—		—		—		53
Total credit card & other		343,111		1,875		1,599		346,585		—		—		136		136		346,721
Total loans, net of unearned income	$	18,873,176	$	51,095	$	22,411	$	18,946,682	$	92,915	$	7,299	$	43,178	$	143,392	$	19,090,074

(a) TRUPS is presented net of the valuation allowance of $25.5 million.

18

Note 4 – Loans (Continued)

The following table reflects accruing and non-accruing loans by class on December 31, 2016:

	Accruing								Non-Accruing
(Dollars in thousands)	Current		30-89 Days Past Due		90+ Days Past Due		Total Accruing		Current		30-89 Days Past Due		90+ Days Past Due		Total Non- Accruing		Total Loans
Commercial (C&I):
General C&I	$	9,720,231	$	5,199	$	23	$	9,725,453	$	16,106	$	374	$	12,988	$	29,468	$	9,754,921
Loans to mortgage companies		2,041,408		3,722		—		2,045,130		—		—		59		59		2,045,189
TRUPS (a)		304,236		—		—		304,236		—		—		3,209		3,209		307,445
Purchased credit-impaired loans		40,113		185		234		40,532		—		—		—		—		40,532
Total commercial (C&I)		12,105,988		9,106		257		12,115,351		16,106		374		16,256		32,736		12,148,087
Commercial real estate:
Income CRE		2,085,455		14		—		2,085,469		232		460		1,289		1,981		2,087,450
Residential CRE		42,182		178		—		42,360		—		—		795		795		43,155
Purchased credit-impaired loans		4,809		109		—		4,918		—		—		—		—		4,918
Total commercial real estate		2,132,446		301		—		2,132,747		232		460		2,084		2,776		2,135,523
Consumer real estate:
HELOC		1,602,640		17,997		10,859		1,631,496		46,964		4,201		8,922		60,087		1,691,583
R/E installment loans		2,794,866		7,844		5,158		2,807,868		17,989		2,383		2,353		22,725		2,830,593
Purchased credit-impaired loans		1,319		164		93		1,576		—		—		—		—		1,576
Total consumer real estate		4,398,825		26,005		16,110		4,440,940		64,953		6,584		11,275		82,812		4,523,752
Permanent mortgage		385,972		4,544		5,428		395,944		11,867		2,194		13,120		27,181		423,125
Credit card & other:
Credit card		188,573		1,622		1,456		191,651		—		—		—		—		191,651
Other		166,062		992		134		167,188		—		—		142		142		167,330
Purchased credit-impaired loans		52		—		—		52		—		—		—		—		52
Total credit card & other		354,687		2,614		1,590		358,891		—		—		142		142		359,033
Total loans, net of unearned income	$	19,377,918	$	42,570	$	23,385	$	19,443,873	$	93,158	$	9,612	$	42,877	$	145,647	$	19,589,520

(a) TRUPS is presented net of the valuation allowance of $25.5 million.

Troubled Debt Restructurings

As part of FHN’s ongoing risk management practices, FHN attempts to work with borrowers when necessary to extend or modify loan terms to better align with their current ability to repay. Extensions and modifications to loans are made in accordance with internal policies and guidelines which conform to regulatory guidance. Each occurrence is unique to the borrower and is evaluated separately.

A modification is classified as a TDR if the borrower is experiencing financial difficulty and it is determined that FHN has granted a concession to the borrower. FHN may determine that a borrower is experiencing financial difficulty if the borrower is currently in default on any of its debt, or if it is probable that a borrower may default in the foreseeable future. Many aspects of a borrower’s financial situation are assessed when determining whether they are experiencing financial difficulty. Concessions could include extension of the maturity date, reductions of the interest rate (which may make the rate lower than current market for a new loan with similar risk), reduction or forgiveness of accrued interest, or principal forgiveness. The assessments of whether a borrower is experiencing (or is likely to experience) financial difficulty, and whether a concession has been granted, are subjective in nature and management’s judgment is required when determining whether a modification is classified as a TDR.

For all classes within the commercial portfolio segment, TDRs are typically modified through forbearance agreements (generally 6 to 12 months). Forbearance agreements could include reduced interest rates, reduced payments, release of guarantor, or entering into short sale agreements. FHN’s proprietary modification programs for consumer loans are generally structured using parameters of U.S. government-sponsored programs such as the former Home Affordable Modification Program (“HAMP”). Within the HELOC and R/E installment loans classes of the consumer portfolio segment, TDRs are typically modified by reducing the interest rate (in increments of 25 basis points to a minimum of 1 percent for up to 5 years) and a possible maturity date extension to reach an affordable housing debt-to-income ratio. After 5 years, the interest rate generally returns to the original interest rate prior to modification; for certain modifications, the modified interest rate increases 2 percent per year until the original interest rate prior to modification is achieved. Permanent mortgage TDRs are typically modified by reducing the interest rate (in increments of 25 basis points to a minimum of 2 percent for up to 5 years) and a possible maturity date extension to reach an affordable housing debt-to-income ratio. After 5 years, the interest rate steps up 1 percent every year until it reaches the Federal Home Loan Mortgage Corporation Weekly Survey Rate cap. Contractual maturities may be extended to 40 years on permanent mortgages and to 30 years for consumer real estate loans. Within the

19

Note 4 – Loans (Continued)

credit card class of the consumer portfolio segment, TDRs are typically modified through either a short-term credit card hardship program or a longer-term credit card workout program. In the credit card hardship program, borrowers may be granted rate and payment reductions for 6 months to 1 year. In the credit card workout program, customers are granted a rate reduction to 0 percent and term extensions for up to 5 years to pay off the remaining balance.

Despite the absence of a loan modification, the discharge of personal liability through bankruptcy proceedings is considered a concession. As a result, FHN classifies all non-reaffirmed residential real estate loans discharged in Chapter 7 bankruptcy as nonaccruing TDRs.

On March 31, 2017 and December 31, 2016, FHN had $270.0 million and $285.2 million of portfolio loans classified as TDRs, respectively. For TDRs in the loan portfolio, FHN had loan loss reserves of $43.4 million, or 16 percent as of March 31, 2017, and $44.9 million, or 16 percent as of December 31, 2016. Additionally, $67.2 million and $69.3 million of loans held-for-sale as of March 31, 2017 and December 31, 2016, respectively, were classified as TDRs.

The following tables reflect portfolio loans that were classified as TDRs during the three months ended March 31, 2017 and 2016:

	March 31, 2017						March 31, 2016
(Dollars in thousands)	Number		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial (C&I):
General C&I		1	$	27	$	37		1	$	708	$	708
Total commercial (C&I)		1		27		37		1		708		708
Consumer real estate:
HELOC		35		2,589		2,473		99		7,440		7,370
R/E installment loans		14		957		902		15		898		895
Total consumer real estate		49		3,546		3,375		114		8,338		8,265
Permanent mortgage		5		1,310		1,303		—		—		—
Credit card & other		6		21		20		4		19		18
Total troubled debt restructurings		61	$	4,904	$	4,735		119	$	9,065	$	8,991

The following tables present TDRs which re-defaulted during the three months ended March 31, 2017 and 2016, and as to which the modification occurred 12 months or less prior to the re-default. For purposes of this disclosure, FHN generally defines payment default as 30 or more days past due.

	March 31, 2017				March 31, 2016
(Dollars in thousands)	Number		Recorded Investment		Number		Recorded Investment
Commercial (C&I):
General C&I		1	$	5,779		—	$	—
Total commercial (C&I)		1		5,779		—		—
Consumer real estate:
HELOC		4		685		1		36
Total consumer real estate		4		685		1		36
Credit card & other		2		7		—		—
Total troubled debt restructurings		7	$	6,471		1	$	36

20

Note 5 – Allowance for Loan Losses

The ALLL includes the following components: reserves for commercial loans evaluated based on pools of credit graded loans and reserves for pools of smaller-balance homogeneous consumer loans, both determined in accordance with ASC 450-20-50. The reserve factors applied to these pools are an estimate of probable incurred losses based on management’s evaluation of historical net losses from loans with similar characteristics and are subject to qualitative adjustments by management to reflect current events, trends, and conditions (including economic considerations and trends). The current economic conditions and trends, performance of the housing market, unemployment levels, labor participation rate, regulatory guidance, and both positive and negative portfolio segment-specific trends, are examples of additional factors considered by management in determining the ALLL. Additionally, management considers the inherent uncertainty of quantitative models that are driven by historical loss data. Management evaluates the periods of historical losses that are the basis for the loss rates used in the quantitative models and selects historical loss periods that are believed to be the most reflective of losses inherent in the loan portfolio as of the balance sheet date. Management also periodically reviews analysis of the loss emergence period which is the amount of time it takes for a loss to be confirmed (initial charge-off) after a loss event has occurred. FHN performs extensive studies as it relates to the historical loss periods used in the model and the loss emergence period and model assumptions are adjusted accordingly. The ALLL also includes reserves determined in accordance with ASC 310-10-35 for loans determined by management to be individually impaired and an allowance associated with PCI loans. See Note 1 – Summary of Significant Accounting Policies and Note 5 - Allowance for Loan Losses in the Notes to Consolidated Financial Statements on FHN’s Form 10-K for the year ended December 31, 2016, for additional information about the policies and methodologies used in the aforementioned components of the ALLL.

The following table provides a rollforward of the allowance for loan losses by portfolio segment for the three months ended March 31, 2017 and 2016:

(Dollars in thousands)	C&I			Commercial Real Estate			Consumer Real Estate			Permanent Mortgage			Credit Card and Other			Total
Balance as of January 1, 2017	$	89,398		$	33,852		$	50,357		$	16,289		$	12,172		$	202,068
Charge-offs		(600	)		—			(3,849	)		(483	)		(3,481	)		(8,413	)
Recoveries		1,676			221			5,676			903			837			9,313
Provision/(provision credit) for loan losses		2,633			(3,185	)		(2,504	)		(816	)		2,872			(1,000	)
Balance as of March 31, 2017		93,107			30,888			49,680			15,893			12,400			201,968
Allowance - individually evaluated for impairment		3,775			192			28,701			11,532			122			44,322
Allowance - collectively evaluated for impairment		89,142			30,646			20,629			4,361			12,278			157,056
Allowance - purchased credit-impaired loans		190			50			350			—			—			590
Loans, net of unearned as of March 31, 2017:
Individually evaluated for impairment		44,970			3,096			146,472			88,743			269			283,550
Collectively evaluated for impairment		11,620,748			2,166,069			4,308,917			320,492			346,399			18,762,625
Purchased credit-impaired loans		38,278			4,146			1,422			—			53			43,899
Total loans, net of unearned income	$	11,703,996		$	2,173,311		$	4,456,811		$	409,235		$	346,721		$	19,090,074
Balance as of January 1, 2016	$	73,637		$	25,159		$	80,614		$	18,947		$	11,885		$	210,242
Charge-offs		(6,525	)		(642	)		(6,926	)		(112	)		(3,407	)		(17,612	)
Recoveries		780			222			5,735			779			888			8,404
Provision/(provision credit) for loan losses		12,995			887			(12,102	)		(860	)		2,080			3,000
Balance as of March 31, 2016		80,887			25,626			67,321			18,754			11,446			204,034
Allowance - individually evaluated for impairment		9,148			488			31,119			16,975			146			57,876
Allowance - collectively evaluated for impairment		71,615			24,840			35,477			1,779			11,299			145,010
Allowance - purchased credit-impaired loans		124			298			725			—			1			1,148
Loans, net of unearned as of March 31, 2016:
Individually evaluated for impairment		44,465			8,950			162,128			96,874			345			312,762
Collectively evaluated for impairment		10,181,677			1,826,677			4,523,885			345,917			353,822			17,231,978
Purchased credit-impaired loans		13,041			12,942			4,217			—			54			30,254
Total loans, net of unearned income	$	10,239,183		$	1,848,569		$	4,690,230		$	442,791		$	354,221		$	17,574,994

21

Note 6 – Intangible Assets

The following is a summary of other intangible assets included in the Consolidated Condensed Statements of Condition:

	March 31, 2017							December 31, 2016
(Dollars in thousands)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Value		Gross Carrying Amount		Accumulated Amortization			Net Carrying Value
Core deposit intangibles	$	16,850	$	(5,199	)	$	11,651	$	16,850	$	(4,721	)	$	12,129
Customer lists		54,865		(47,053	)		7,812		54,865		(46,302	)		8,563
Other (a)		322		—			322		555		(230	)		325
Total	$	72,037	$	(52,252	)	$	19,785	$	72,270	$	(51,253	)	$	21,017

(a) Balance at March 31, 2017 relates to state banking licenses and are not subject to amortization.

Amortization expense was $1.2 million and $1.3 million for the three months ended March 31, 2017 and 2016, respectively. As of March 31, 2017 the estimated aggregated amortization expense is expected to be:

(Dollars in thousands)
Year	Amortization
Remainder of 2017	$	3,683
2018		4,679
2019		4,453
2020		1,659
2021		1,574
2022		1,450

Gross goodwill, accumulated impairments, and accumulated divestiture related write-offs were determined beginning January 1, 2012, when a change in accounting requirements resulted in goodwill being assessed for impairment rather than being amortized. Gross goodwill of $200.0 million with accumulated impairments and accumulated divestiture-related write-offs of $114.1 million and $85.9 million, respectively, were previously allocated to the non-strategic segment, resulting in $0 net goodwill allocated to the non-strategic segment as of March 31, 2017 and December 31, 2016. The regional banking and fixed income segments do not have any accumulated impairments or divestiture related write-offs. The following is a summary of goodwill by reportable segment included in the Consolidated Condensed Statements of Condition as of March 31, 2017 and December 31, 2016.

(Dollars in thousands)	Regional Banking		Fixed Income		Total
December 31, 2015	$	93,303	$	98,004	$	191,307
Additions		—		—		—
March 31, 2016	$	93,303	$	98,004	$	191,307
December 31, 2016	$	93,367	$	98,004	$	191,371
Additions		—		—		—
March 31, 2017	$	93,367	$	98,004	$	191,371

22

Note 7 – Other Income and Other Expense

Following is detail of All other income and commissions and All other expense as presented in the Consolidated Condensed Statements of Income:

	Three Months Ended March 31
(Dollars in thousands)	2017			2016
All other income and commissions:
Other service charges	$	2,984		$	2,713
ATM interchange fees		2,778			2,958
Deferred compensation		1,827			329
Electronic banking fees		1,323			1,397
Mortgage banking		1,261			1,273
Letter of credit fees		1,036			1,061
Insurance commissions		883			487
Other		2,299			3,071
Total	$	14,391		$	13,289
All other expense:
Other insurance and taxes	$	2,390		$	3,313
Travel and entertainment		2,348			2,062
Employee training and dues		1,543			1,390
Customer relations		1,336			1,879
Tax credit investments		942			706
Supplies		863			1,026
Miscellaneous loan costs		622			717
Foreclosed real estate		204			(258	)
Litigation and regulatory matters		(292	)		(475	)
Other		8,831			11,719
Total	$	18,787		$	22,079

23

Note 8 – Components of Other Comprehensive Income/(loss)

The following table provides the changes in accumulated other comprehensive income/(loss) by component, net of tax, for the three months ended March 31, 2017 and 2016:

(Dollars in thousands)	Securities AFS			Cash Flow Hedges			Pension and Post-retirement Plans			Total
Balance as of January 1, 2017	$	(17,232	)	$	(1,265	)	$	(229,157	)	$	(247,654	)
Net unrealized gains/(losses)		(1,536	)		(1,062	)		—			(2,598	)
Amounts reclassified from AOCI		(27	)		(852	)		1,173			294
Other comprehensive income/(loss)		(1,563	)		(1,914	)		1,173			(2,304	)
Balance as of March 31, 2017	$	(18,795	)	$	(3,179	)	$	(227,984	)	$	(249,958	)
Balance as of January 1, 2016	$	3,394		$	—		$	(217,586	)	$	(214,192	)
Net unrealized gains/(losses)		40,180			3,839			—			44,019
Amounts reclassified from AOCI		(1,020	)		(374	)		1,126			(268	)
Other comprehensive income/(loss)		39,160			3,465			1,126			43,751
Balance as of March 31, 2016	$	42,554		$	3,465		$	(216,460	)	$	(170,441	)

Reclassifications from AOCI, and related tax effects, were as follows:

(Dollars in thousands)	Three Months Ended March 31
Details about AOCI	2017			2016			Affected line item in the statement where net income is presented
Securities AFS:
Realized (gains)/losses on securities AFS	$	(44	)	$	(1,654	)	Debt securities gains/(losses), net
Tax expense/(benefit)		17			634		Provision/(benefit) for income taxes
		(27	)		(1,020	)
Cash flow hedges:
Realized (gains)/losses on cash flow hedges		(1,380	)		(606	)	Interest and fees on loans
Tax expense/(benefit)		528			232		Provision/(benefit) for income taxes
		(852	)		(374	)
Pension and Postretirement Plans:
Amortization of prior service cost and net actuarial gain/(loss)		1,900			1,826		Employee compensation, incentives, and benefits
Tax expense/(benefit)		(727	)		(700	)	Provision/(benefit) for income taxes
		1,173			1,126
Total reclassification from AOCI	$	294		$	(268	)

24

Note 9 – Earnings Per Share

The following table provides reconciliations of net income to net income available to common shareholders and the difference between average basic common shares outstanding and average diluted common shares outstanding:

	Three Months Ended March 31
(Dollars and shares in thousands, except per share data)	2017		2016
Net income/(loss)	$	58,388	$	52,213
Net income attributable to noncontrolling interest		2,820		2,851
Net income/(loss) attributable to controlling interest		55,568		49,362
Preferred stock dividends		1,550		1,550
Net income/(loss) available to common shareholders	$	54,018	$	47,812
Weighted average common shares outstanding—basic		233,076		234,651
Effect of dilutive securities		3,779		2,015
Weighted average common shares outstanding—diluted		236,855		236,666
Net income/(loss) per share available to common shareholders	$	0.23	$	0.20
Diluted income/(loss) per share available to common shareholders	$	0.23	$	0.20

The following table presents outstanding options and other equity awards that were excluded from the calculation of diluted earnings per share because they were either anti-dilutive (the exercise price was higher than the weighted-average market price for the period) or the performance conditions have not been met:

	Three Months Ended March 31
(Shares in thousands)	2017		2016
Stock options excluded from the calculation of diluted EPS		2,453		4,119
Weighted average exercise price of stock options excluded from the calculation of diluted EPS	$	26.08	$	22.45
Other equity awards excluded from the calculation of diluted EPS		99		1,124

25

Note 10 – Contingencies and Other Disclosures

CONTINGENCIES

Contingent Liabilities Overview

Contingent liabilities arise in the ordinary course of business. Often they are related to lawsuits, arbitration, mediation, and other forms of litigation. Various litigation matters are threatened or pending against FHN and its subsidiaries. Also, FHN at times receives requests for information, subpoenas, or other inquiries from federal, state, and local regulators, from other government authorities, and from other parties concerning various matters relating to FHN’s current or former lines of business. Certain matters of that sort are pending at this time, and FHN is cooperating in those matters. Pending and threatened litigation matters sometimes are resolved in court or before an arbitrator, and sometimes are settled by the parties. Regardless of the manner of resolution, frequently the most significant changes in status of a matter occur over a short time period, often following a lengthy period of little substantive activity. In view of the inherent difficulty of predicting the outcome of these matters, particularly where the claimants seek very large or indeterminate damages, or where the cases present novel legal theories or involve a large number of parties, or where claims or other actions may be possible but have not been brought, FHN cannot reasonably determine what the eventual outcome of the matters will be, what the timing of the ultimate resolution of these matters may be, or what the eventual loss or impact related to each matter may be. FHN establishes a loss contingency liability for a litigation matter when loss is both probable and reasonably estimable as prescribed by applicable financial accounting guidance. If loss for a matter is probable and a range of possible loss outcomes is the best estimate available, accounting guidance requires a liability to be established at the low end of the range.

Based on current knowledge, and after consultation with counsel, management is of the opinion that loss contingencies related to threatened or pending litigation matters should not have a material adverse effect on the consolidated financial condition of FHN, but may be material to FHN’s operating results for any particular reporting period depending, in part, on the results from that period.

Material Loss Contingency Matters

Summary

As used in this Note, “material loss contingency matters” generally fall into at least one of the following categories: (i) FHN has determined material loss to be probable and has established a material loss liability in accordance with applicable financial accounting guidance, other than certain matters reported as having been substantially settled or otherwise substantially resolved; (ii) FHN has determined material loss to be probable but is not reasonably able to estimate an amount or range of material loss liability; or (iii) FHN has determined that material loss is not probable but is reasonably possible, and that the amount or range of that reasonably possible material loss is estimable. As defined in applicable accounting guidance, loss is reasonably possible if there is more than a remote chance of a material loss outcome for FHN. Set forth below are disclosures for certain pending or threatened litigation matters, including all matters mentioned in (i) or (ii) and certain matters mentioned in (iii). In addition, certain other matters, or groups of matters, are discussed relating to FHN’s former mortgage origination and servicing businesses. In all litigation matters discussed, unless settled or otherwise resolved, FHN believes it has meritorious defenses and intends to pursue those defenses vigorously.

FHN reassesses the liability for litigation matters each quarter as the matters progress. At March 31, 2017, the aggregate amount of liabilities established for all such loss contingency matters was $1.6 million. These liabilities are separate from those discussed under the heading “Repurchase and Foreclosure Liability” below.

In each material loss contingency matter, except as otherwise noted, there is more than a remote chance that any of the following outcomes will occur: the plaintiff will substantially prevail; the defense will substantially prevail; the plaintiff will prevail in part; or the matter will be settled by the parties. At March 31, 2017, FHN estimates that for all material loss contingency matters, estimable reasonably possible losses in future periods in excess of currently established liabilities could aggregate in a range from zero to approximately $52 million.

As a result of the general uncertainties discussed above and the specific uncertainties discussed for each matter mentioned below, it is possible that the ultimate future loss experienced by FHN for any particular matter may materially exceed the amount, if any, of currently established liability for that matter. That possibility exists both for matters included in the estimated reasonably possible loss (“RPL”) range mentioned above and for matters not included in that range.

Material Matters

FHN, along with multiple co-defendants, is defending lawsuits brought by investors which claim that the offering documents under which certificates relating to First Horizon branded securitizations were sold to them were materially deficient. One of those matters is viewed as material currently: Federal Deposit Insurance Corporation (“FDIC”) as receiver for Colonial Bank, in the U.S. District Court for the Southern District of New York (Case No. 12 Civ. 6166 (LLS)(MHD)). The plaintiff in that suit claims to have purchased

26

Note 10 – Contingencies and Other Disclosures (Continued)

(and later sold) certificates totaling $83.4 million, relating to a number of separate securitizations. Plaintiff demands damages and prejudgment interest, among several remedies sought. The current RPL estimate for this matter is subject to significant uncertainties regarding: the dollar amounts claimed; the potential remedies that might be available or awarded; the outcome of any settlement discussions; the availability of significantly dispositive defenses; and the incomplete status of the discovery process. Additional information concerning FHN’s former mortgage businesses is provided below in “Obligations from Legacy Mortgage Businesses.”

Underwriters are co-defendants in the FDIC-New York matter and have demanded, under provisions in the applicable underwriting agreements, that FHN indemnify them for their expenses and any losses they may incur. In addition, FHN has received indemnity demands from underwriters in certain other suits as to which investors claim to have purchased certificates in FH proprietary securitizations but as to which FHN has not been named a defendant.

For most pending indemnity claims FHN is unable to estimate an RPL range due to significant uncertainties regarding: claims as to which the claimant specifies no dollar amount; the potential remedies that might be available or awarded; the availability of significantly dispositive defenses such as statutes of limitations or repose; the outcome of potentially dispositive early-stage motions such as motions to dismiss; the incomplete status of the discovery process; the lack of a precise statement of damages; and lack of precedent claims. The alleged purchase prices of the certificates subject to pending indemnification claims, excluding the FDIC-New York matter, total $409.9 million.

FHN is defending a suit filed in January 2017 by the successor to a purchaser of other whole loans sold, ResCap Liquidating Trust, which is pending in the U.S District Court for the District of Minnesota (Case No. 17-CV-194). Plaintiff claims that FHN breached representations and warranties made in the loan sales, which occurred over many years, and that FHN is obligated to indemnify plaintiff for certain losses. The suit seeks make-whole and other damages, indemnification, a declaratory judgment, and other remedies. FHN is unable to estimate an RPL range for this matter due to significant uncertainties regarding, among other things: lack of information about the claims made; the prospects for potentially dispositive early-stage motions; the prospects for significantly dispositive defenses; the scope of potential remedies that might be available or awarded; lack of discovery; lack of a precise statement of damages; and lack of precedent claims.

FHN has additional potential exposures related to its former mortgage businesses. A few of those matters have become litigation which FHN currently estimates are immaterial, some are non-litigation claims or threats, some are mere subpoenas or other requests for information, and in some areas FHN has no indication of any active or threatened dispute. Some of those matters might eventually result in loan repurchases or make-whole payments and could be included in the repurchase liability discussed below, and some might eventually result in damages or other litigation-oriented liability, but none are included in the material loss contingency liabilities mentioned above or in the RPL range mentioned above. Additional information concerning such exposures is provided below in “Obligations from Legacy Mortgage Businesses.”

Material Gain Contingency Matter

In second quarter 2015 FHN reached an agreement with DOJ and HUD to settle potential claims related to FHN’s underwriting and origination of loans insured by FHA. Under that agreement FHN paid $212.5 million. FHN believes that certain insurance policies, having an aggregate policy limit of $75 million, provide coverage for FHN’s losses and related costs. The insurers have denied and/or reserved rights to deny coverage. FHN has brought suit against the insurers to enforce the policies under Tennessee law. In connection with this litigation the previously recognized expenses associated with the settled matter may be recouped in part. Under applicable financial accounting guidance FHN has determined that although material gain from this litigation is not probable, there is a reasonably possible (more than remote) chance of a material gain outcome for FHN. FHN cannot determine a probable outcome that may result from this matter because of the uncertainty of the potential outcomes of the legal proceedings and also due to significant uncertainties regarding: legal interpretation of the relevant contracts; potential remedies that might be available or awarded; the ultimate effect of counterclaims asserted by the defendants; and incomplete discovery. Additional information concerning FHN’s former mortgage businesses is provided below in “Obligations from Legacy Mortgage Businesses.”

Obligations from Legacy Mortgage Businesses

Loss contingencies mentioned above under “Material Matters” stem from FHN’s former mortgage origination and servicing businesses. FHN retains potential for further exposure, in addition to the matters mentioned, from those former businesses. The following discussion provides context and other information to enhance an understanding of those matters and exposures.

Overview

Prior to September 2008 FHN originated loans through its legacy mortgage business, primarily first lien home loans, with the intention of selling them. Sales typically were effected either as non-recourse whole-loan sales or through non-recourse proprietary securitizations. Conventional conforming single-family residential mortgage loans were sold predominately to two GSEs: Fannie Mae

27

Note 10 – Contingencies and Other Disclosures (Continued)

and Freddie Mac. Also, federally insured or guaranteed whole loans were pooled, and payments to investors were guaranteed through Ginnie Mae. Many mortgage loan originations, especially nonconforming mortgage loans, were sold to investors, or certificate-holders, predominantly through FH proprietary securitizations but also, to a lesser extent, through other whole loans sold to private non-Agency purchasers. FHN used only one trustee for all of its FH proprietary securitizations. FHN also originated mortgage loans eligible for FHA insurance or VA guaranty. In addition, FHN originated and sold HELOCs and second lien mortgages through other whole loans sold to private purchasers and, to a lesser extent, through FH proprietary securitizations. Currently, only one FH securitization of HELOCs remains outstanding.

For non-recourse loan sales, FHN has exposure for repurchase of loans, make-whole damages, or other related damages, arising from claims that FHN breached its representations and warranties made at closing to the purchasers, including GSEs, other whole loan purchasers, and the trustee of FH proprietary securitizations.

During the time these legacy activities were conducted, FHN frequently sold mortgage loans “with servicing retained.” As a result, FHN accumulated substantial amounts of MSR on its consolidated balance sheet, as well as contractual servicing obligations and related deposits and receivables. FHN conducted a significant servicing business under its First Horizon Home Loans brand.

MI was required by GSE rules for certain of the loans sold to GSEs and was also provided for certain of the loans that were securitized. MI generally was provided for first lien loans sold or securitized having an LTV ratio at origination of greater than 80 percent.

In 2007, market conditions deteriorated to the point where mortgage-backed securitizations no longer could be sold economically; FHN’s last securitization occurred that year. FHN continued selling mortgage loans to GSEs until August 31, 2008, when FHN sold its national mortgage origination and servicing platforms along with a portion of its servicing assets and obligations. FHN contracted to have its remaining servicing obligations sub-serviced. Since the platform sale FHN has sold substantially all remaining servicing assets and obligations.

Certain mortgage-related terms used in this “Contingencies” section are defined in “Mortgage-Related Glossary” at the end of this Overview.

Repurchase and Make-Whole Obligations

Starting in 2009, FHN received a high number of claims either to repurchase loans from the purchaser or to pay the purchaser to “make them whole” for economic losses incurred. These claims have been driven primarily by loan delinquencies. In repurchase or make-whole claims a loan purchaser typically asserts that specified loans violated representations and warranties FHN made when the loans were sold. A significant majority of claims received overall have come from GSEs, and the remainder are from purchasers of other whole loan sales. FHN has not received a loan repurchase or make-whole claim from the FH proprietary securitization trustee.

Generally, FHN reviews each claim and MI cancellation notice individually. FHN’s responses include appeal, provide additional information, deny the claim (rescission), repurchase the loan or remit a make-whole payment, or reflect cancellation of MI.

After several years resolving repurchase and make-whole claims with each GSE on a loan-by-loan basis, in 2013 and 2014 FHN entered into DRAs with the GSEs, resolving at once a large fraction of potential claims. Starting in 2014, the overall number of such claims diminished substantially, primarily as a result of the DRAs. Each DRA resolved obligations associated with loans originated from 2000 to 2008, but certain obligations and loans were excluded. Under each DRA, FHN remains responsible for repurchase obligations related to certain excluded defects (such as title defects and violations of the GSE’s Charter Act) and FHN continues to have loan repurchase or monetary compensation obligations under the DRAs related to private mortgage insurance rescissions, cancellations, and denials (with certain exceptions). FHN also has exposure related to loans where there has been a prior bulk sale of servicing, as well as certain other whole-loan sales. With respect to loans where there has been a prior bulk sale of servicing, FHN is not responsible for MI cancellations and denials to the extent attributable to the acts of the current servicer.

While large portions of repurchase claims from the GSEs were settled with the DRAs, comprehensive settlement of repurchase, make-whole, and indemnity claims with non-Agency claimants is not practical. Such claims that are not resolved by the parties can, and sometimes have, become litigation.

FH Proprietary Securitization Actions

FHN has potential financial exposure from FH proprietary securitizations outside of the repurchase/make-whole process. Several investors in certificates sued FHN and others starting in 2009, and several underwriters or other counterparties have demanded that FHN indemnify and defend them in securitization lawsuits. The pending suits generally assert that disclosures made to investors in the offering and sale of certificates were legally deficient.

28

Note 10 – Contingencies and Other Disclosures (Continued)

Servicing Obligations

FHN’s national servicing business was sold as part of the platform sale in 2008. A significant amount of MSR was sold at that time, and a significant amount was retained. The related servicing activities, including foreclosure and loss mitigation practices, not sold in 2008 were outsourced through a three-year subservicing arrangement (the “2008 subservicing agreement”) with the platform buyer (the “2008 subservicer”). The 2008 subservicing agreement expired in 2011 when FHN entered into a replacement agreement with a new subservicer (the “2011 subservicer”). In fourth quarter 2013, FHN contracted to sell a substantial majority of its remaining servicing obligations and servicing assets (including advances) to the 2011 subservicer. The servicing was transferred to the buyer in stages, and was substantially completed in first quarter 2014. The servicing still retained by FHN continues to be subserviced.

As servicer, FHN had contractual obligations to the owners of the loans (primarily GSEs) and securitization trustees, to handle billing, custodial, and other tasks related to each loan. Each subservicer undertook to perform those obligations on FHN’s behalf during the applicable subservicing period, although FHN legally remained the servicer of record for those loans that were subserviced.

The 2008 subservicer has been subject to a consent decree, and entered into a settlement agreement with regulators related to alleged deficiencies in servicing and foreclosure practices. The 2008 subservicer has made demands of FHN, under the 2008 subservicing agreement, to pay certain resulting costs and damages totaling $43.5 million. FHN disagrees with those demands and has made no payments. This disagreement has the potential to result in litigation and, in any such future litigation, the claim against FHN may be substantial.

A certificate holder has contacted FHN, claiming that it has been damaged from alleged deficiencies in servicing loans held in certain FH proprietary securitization trusts. The holder has sued the FH securitization trustee on related grounds, but has not yet sued FHN. FHN cannot predict how this matter will proceed nor can FHN predict whether this matter ultimately will be material to FHN.

Origination Data

From 2005 through 2008, FHN originated and sold $69.5 billion of mortgage loans to the Agencies. This includes $57.6 billion of loans sold to GSEs and $11.9 billion of loans guaranteed by Ginnie Mae. Although FHN conducted these businesses before 2005, GSE loans originated in 2005 through 2008 account for a substantial majority of all repurchase requests/make-whole claims received since the 2008 platform sale.

From 2005 through 2007, $26.7 billion of mortgage loans were included in FH proprietary securitizations. The last FH securitization occurred in 2007.

Mortgage-Related Glossary

Agencies	the two GSEs and Ginnie Mae	HELOC	home equity line of credit
certificates	securities sold to investors representing interests in mortgage loan securitizations	HUD	Dept. of Housing and Urban Development
DOJ	U.S. Department of Justice	LTV	loan-to-value, a ratio of the loan amount divided by the home value
DRA	definitive resolution agreement with a GSE	MI	private mortgage insurance, insuring against borrower payment default
Fannie Mae, Fannie, FNMA	Federal National Mortgage Association	MSR	mortgage servicing rights
FH proprietary securitization	securitization of mortgages sponsored by FHN under its First Horizon brand	nonconforming loans	loans that did not conform to Agency program requirements
FHA	Federal Housing Administration	other whole loans sold	mortgage loans sold to private, non-Agency purchasers
Freddie Mac, Freddie, FHLMC	Federal Home Loan Mortgage Corporation	2008 platform sale, platform sale, 2008 sale	FHN’s sale of its national mortgage origination and servicing platforms in 2008
Ginnie Mae, Ginnie, GNMA	Government National Mortgage Association	pipeline or active pipeline	pipeline of mortgage repurchase, make-whole, & certain related claims against FHN
GSEs	Fannie Mae and Freddie Mac	VA	Veterans Administration

29

Note 10 – Contingencies and Other Disclosures (Continued)

Repurchase and Foreclosure Liability

The repurchase and foreclosure liability is comprised of reserves to cover estimated loss content in the active pipeline, estimated future inflows, as well as estimated loss content related to certain known claims not currently included in the active pipeline. FHN compares the estimated probable incurred losses determined under the applicable loss estimation approaches for the respective periods with current reserve levels. Changes in the estimated required liability levels are recorded as necessary through the repurchase and foreclosure provision.

Based on currently available information and experience to date, FHN has evaluated its loan repurchase, make-whole, and certain related exposures and has accrued for losses of $65.5 million and $66.0 million as of March 31, 2017 and December 31, 2016, respectively, including a smaller amount related to equity-lending junior lien loan sales. Accrued liabilities for FHN’s estimate of these obligations are reflected in Other liabilities on the Consolidated Condensed Statements of Condition. Charges/expense reversals to increase/decrease the liability are included within Repurchase and foreclosure provision/(provision credit) on the Consolidated Condensed Statements of Income. The estimates are based upon currently available information and fact patterns that exist as of the balance sheet dates and could be subject to future changes. Changes to any one of these factors could significantly impact the estimate of FHN’s liability.

Other FHN Mortgage Exposures

FHN’s FHA and VA program lending was substantial prior to the 2008 platform sale, and has continued at a much lower level since then. As lender, FHN made certain representations and warranties as to the compliance of the loans with program requirements. Over the past several years, most recently in first quarter 2015, FHN occasionally has recognized significant losses associated with settling claims and potential claims by government agencies, and by private parties asserting claims on behalf of agencies, related to these origination activities. At March 31, 2017, FHN had not accrued a liability for any matter related to these government lending programs, and no pending or known threatened matter related to these programs represented a material loss contingency described above.

At March 31, 2017, FHN had not accrued a liability for exposure for repurchase of first-lien loans related to FH proprietary securitizations arising from claims from the trustee that FHN breached its representations and warranties in FH proprietary securitizations at closing. FHN’s trustee is a defendant in lawsuits in which the plaintiffs have asserted that the trustee has duties to review loans and otherwise to act against FHN outside of the duties specified in the applicable trust documents; FHN is not a defendant and is not able to assess what, if any, exposure FHN may have as a result of them.

FHN is defending, directly or as indemnitor, certain pending lawsuits brought by purchasers of certificates in FH proprietary securitizations or their assignees. FHN believes a new lawsuit based on federal securities claims that offering disclosures were deficient cannot be brought at this time due to the running of applicable limitation periods, but other investor claims, based on other legal theories, might still be possible. Due to sales of MSR starting in 2008, FHN has limited visibility into current loan information such as principal payoffs, refinance activity, delinquency trends, and loan modification activity.

Many non-GSE purchasers of whole loans from FHN included those loans in their own securitizations. Regarding such other whole loans sold, FHN made representations and warranties concerning the loans and provided indemnity covenants to the purchaser/securitizer. Typically the purchaser/securitizer assigned key contractual rights against FHN to the securitization trustee. As mentioned above, repurchase, make-whole, indemnity, and other monetary claims related to specific loans are included in the active pipeline and repurchase reserve. In addition, currently the following categories of actions are pending which involve FHN and other whole loans sold: (i) FHN has received indemnification requests from purchasers of loans or their assignees in cases where FHN is not a defendant; (ii) FHN has received subpoenas seeking loan reviews in cases where FHN is not a defendant; (iii) FHN has received repurchase demands from purchasers or their assignees; and (iv) FHN is a defendant in legal actions involving FHN-originated other whole loans sold, including one of the material matters mentioned above. At March 31, 2017, FHN’s repurchase and foreclosure liability considered certain known exposures from other whole loans sold.

Certain government entities have subpoenaed information from FHN and others. These entities include the FDIC (on behalf of certain failed banks) and the FHLBs of San Francisco, Atlanta, and Seattle, among others. These entities purport to act on behalf of several purchasers of FH proprietary securitizations, and of non-FH securitizations which included other whole loans sold. Collectively, the subpoenas seek information concerning: a number of FH proprietary securitizations and/or underlying loan originations; and originations of certain other whole loans sold which, in many cases, were included by the purchaser in its own securitizations. Some subpoenas fail to identify the specific investments made or loans at issue. Moreover, FHN has limited information regarding at least some of the loans under review. Unless and until a review (if related to specific loans) becomes an identifiable repurchase claim, the associated loans are not considered part of the active pipeline.

30

Note 10 – Contingencies and Other Disclosures (Continued)

OTHER DISCLOSURES

Visa Matters

FHN is a member of the Visa USA network. In October 2007, the Visa organization of affiliated entities completed a series of global restructuring transactions to combine its affiliated operating companies, including Visa USA, under a single holding company, Visa Inc. (“Visa”). Upon completion of the reorganization, the members of the Visa USA network remained contingently liable for certain Visa litigation matters (the “Covered Litigation”). Based on its proportionate membership share of Visa USA, FHN recognized a contingent liability in fourth quarter 2007 related to this contingent obligation. In March 2008, Visa completed its initial public offering (“IPO”) and funded an escrow account from its IPO proceeds to be used to make payments related to the Visa litigation matters. FHN received approximately 2.4 million Class B shares in conjunction with Visa’s IPO.

Conversion of these shares into Class A shares of Visa is prohibited until the final resolution of the covered litigation. In conjunction with the prior sales of Visa Class B shares in December 2010 and September 2011, FHN and the purchasers entered into derivative transactions whereby FHN will make, or receive, cash payments whenever the conversion ratio of the Visa Class B shares into Visa Class A shares is adjusted. The conversion ratio is adjusted when Visa deposits funds into the escrow account to cover certain litigation. As of March 31, 2017 and December 31, 2016, the derivative liabilities were $6.0 million and $6.2 million, respectively.

In July 2012, Visa and MasterCard announced a joint settlement (the “Settlement”) related to the Payment Card Interchange matter, one of the Covered Litigation matters. Based on the amount of the Settlement attributable to Visa and an assessment of FHN’s contingent liability accrued for Visa litigation matters, the Settlement did not have a material impact on FHN. The Settlement was vacated upon appeal in June 2016. Accordingly, the outcome of this matter remains uncertain. Additionally, other Covered Litigation matters are also pending judicial resolution, including new matters filed by class members who opted out of the Settlement. So long as any Covered Litigation matter remains pending, FHN’s ability to transfer its Visa holdings is restricted, with limited exceptions.

FHN now holds approximately 1.1 million Visa Class B shares. FHN’s Visa shares are not considered to be marketable and therefore are included in the Consolidated Condensed Statements of Condition at their historical cost of $0. As of March 31, 2017, the conversion ratio is 165 percent reflecting a Visa stock split in March 2015, and the contingent liability is $.8 million. Future funding of the escrow would dilute this conversion ratio by an amount that is not determinable at present. Based on the closing price on March 31, 2017, assuming conversion into Class A shares at the current conversion ratio, FHN’s Visa holdings would have a value of approximately $163 million. Recognition of this value is dependent upon the final resolution of the remainder of Visa’s Covered Litigation matters without further reduction of the conversion ratio.

Indemnification Agreements and Guarantees

In the ordinary course of business, FHN enters into indemnification agreements for legal proceedings against its directors and officers and standard representations and warranties for underwriting agreements, merger and acquisition agreements, loan sales, contractual commitments, and various other business transactions or arrangements. The extent of FHN’s obligations under these agreements depends upon the occurrence of future events; therefore, it is not possible to estimate a maximum potential amount of payouts that could be required with such agreements.

31

Note 11 – Pension, Savings, and Other Employee Benefits

Pension plan. FHN sponsors a noncontributory, qualified defined benefit pension plan to employees hired or re-hired on or before September 1, 2007. Pension benefits are based on years of service, average compensation near retirement or other termination, and estimated social security benefits at age 65. Benefits under the plan are “frozen” so that years of service and compensation changes after 2012 do not affect the benefit owed. Minimum contributions are based upon actuarially determined amounts necessary to fund the total benefit obligation. Decisions to contribute to the plan are based upon pension funding requirements under the Pension Protection Act, the maximum amount deductible under the Internal Revenue Code, the actual performance of plan assets, and trends in the regulatory environment. FHN contributed $165 million to the qualified pension plan in third quarter 2016. The contribution had no effect on FHN’s 2016 Consolidated Statements of Income. FHN did not make any contributions to the qualified pension plan in the first quarter of 2017. Management does not currently anticipate that FHN will make a contribution to the qualified pension plan for the remainder of 2017.

FHN also maintains non-qualified plans including a supplemental retirement plan that covers certain employees whose benefits under the qualified pension plan have been limited by tax rules. These other non-qualified plans are unfunded, and contributions to these plans cover all benefits paid under the non-qualified plans. Payments made under the non-qualified plans were $5.1 million for 2016. FHN anticipates making benefit payments under the non-qualified plans of $5.0 million in 2017.

Savings plan. FHN provides all qualifying full-time employees with the opportunity to participate in the FHN tax qualified 401(k) savings plan. The qualified plan allows employees to defer receipt of earned salary, up to tax law limits, on a tax-advantaged basis. Accounts, which are held in trust, may be invested in a wide range of mutual funds and in FHN common stock. Up to tax law limits, FHN provides a 100 percent match for the first 6 percent of salary deferred, with company matching contributions invested according to a participant’s current investment elections. Through a non-qualified savings restoration plan, FHN provides a restorative benefit to certain highly-compensated employees who participate in the savings plan and whose contribution elections are capped by tax limitations.

Other employee benefits. FHN provides postretirement life insurance benefits to certain employees and also provides postretirement medical insurance benefits to retirement-eligible employees. The postretirement medical plan is contributory with FHN contributing a fixed amount for certain participants. FHN’s postretirement benefits include certain prescription drug benefits.

The components of net periodic benefit cost for the three months ended March 31 are as follows:

	Pension Benefits						Other Benefits
(Dollars in thousands)	2017			2016			2017			2016
Components of net periodic benefit cost
Service cost	$	9		$	10		$	27		$	28
Interest cost		7,379			7,882			326			317
Expected return on plan assets		(8,891	)		(9,773	)		(237	)		(229	)
Amortization of unrecognized:
Prior service cost/(credit)		13			49			24			43
Actuarial (gain)/loss		2,380			2,068			(142	)		(233	)
Net periodic benefit cost/(credit)	$	890		$	236		$	(2	)	$	(74	)

32

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 consumer and commercial customers in Tennessee and other selected markets. Regional banking also 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 securities sales, trading, and strategies for institutional clients in the U.S. and abroad, as well as loan sales, portfolio advisory services, and derivative sales. The corporate segment consists of unallocated 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, derivative valuation adjustments related to prior sales of Visa Class B shares, 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. Business segment revenue, expense, asset, and equity 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 average assets for each segment for the three months ended March 31:

	Three Months Ended March 31
(Dollars in thousands)	2017			2016
Consolidated
Net interest income	$	189,708		$	172,074
Provision/(provision credit) for loan losses		(1,000	)		3,000
Noninterest income		116,939			134,305
Noninterest expense		222,205			226,927
Income/(loss) before income taxes		85,442			76,452
Provision/(benefit) for income taxes		27,054			24,239
Net income/(loss)	$	58,388		$	52,213
Average assets	$	28,806,106		$	26,618,694

33

Note 12 – Business Segment Information (Continued)

	Three Months Ended March 31
(Dollars in thousands)	2017			2016
Regional Banking
Net interest income	$	193,389		$	172,312
Provision/(provision credit) for loan losses		3,098			14,767
Noninterest income		58,976			59,276
Noninterest expense		148,065			145,399
Income/(loss) before income taxes		101,202			71,422
Provision/(benefit) for income taxes		36,623			25,407
Net income/(loss)	$	64,579		$	46,015
Average assets	$	17,955,319		$	15,945,192
Fixed Income
Net interest income	$	1,151		$	2,667
Noninterest income		50,822			67,122
Noninterest expense		48,685			58,623
Income/(loss) before income taxes		3,288			11,166
Provision/(benefit) for income taxes		1,024			3,892
Net income/(loss)	$	2,264		$	7,274
Average assets	$	1,875,708		$	2,269,678
Corporate
Net interest income/(expense)	$	(14,100	)	$	(14,363	)
Noninterest income		5,476			5,723
Noninterest expense		16,880			13,461
Income/(loss) before income taxes		(25,504	)		(22,101	)
Provision/(benefit) for income taxes		(13,093	)		(11,246	)
Net income/(loss)	$	(12,411	)	$	(10,855	)
Average assets	$	7,359,015		$	6,362,224
Non-Strategic
Net interest income	$	9,268		$	11,458
Provision/(provision credit) for loan losses		(4,098	)		(11,767	)
Noninterest income		1,665			2,184
Noninterest expense		8,575			9,444
Income/(loss) before income taxes		6,456			15,965
Provision/(benefit) for income taxes		2,500			6,186
Net income/(loss)	$	3,956		$	9,779
Average assets	$	1,616,064		$	2,041,600

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

34

Note 13 – Variable Interest Entities

ASC 810 defines a VIE as a legal entity where (a) the equity investors, as a group, lack sufficient equity at risk for the entity to finance its activities without additional subordinated financial support, (b) the equity investors, as a group, lack either, (1) the power through voting rights, or similar rights, to direct the activities of an entity that most significantly impact the entity’s economic performance, (2) the obligation to absorb the expected losses of the entity, or (3) the right to receive the expected residual returns of the entity, or (c) the entity is structured with non-substantive voting rights. A variable interest is a contractual ownership or other interest that fluctuates with changes in the fair value of the VIE’s net assets exclusive of variable interests. Under ASC 810, as amended, a primary beneficiary is required to consolidate a VIE when it has a variable interest in a VIE that provides it with a controlling financial interest. For such purposes, the determination of whether a controlling financial interest exists is based on whether a single party has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant.

Consolidated Variable Interest Entities

FHN holds variable interests in a proprietary HELOC securitization trust it established as a source of liquidity for consumer lending operations. Based on its restrictive nature, the trust is considered a VIE as the holders of equity at risk do not have the power through voting rights or similar rights to direct the activities that most significantly impact the trust’s economic performance. The retention of MSR and a residual interest results in FHN potentially absorbing losses or receiving benefits that are significant to the trust. FHN is considered the primary beneficiary, as it is assumed to have the power, as Master Servicer, to most significantly impact the activities of the VIE. Consolidation of the trust results in the recognition of the trust proceeds as restricted borrowings since the cash flows on the securitized loans can only be used to settle the obligations due to the holders of trust securities. Through first quarter 2016 the trust experienced a rapid amortization period and FHN was obligated to provide subordinated funding. During the period, cash payments from borrowers were accumulated to repay outstanding debt securities while FHN continued to make advances to borrowers when they drew on their lines of credit. FHN then transferred the newly generated receivables into the securitization trust. FHN is reimbursed for these advances only after other parties in the securitization have received all of the cash flows to which they are entitled. If loan losses requiring draws on the related monoline insurers’ policies (which protect bondholders in the securitization) exceed a certain level, FHN may not receive reimbursement for all of the funds advanced to borrowers, as the senior bondholders and the monoline insurers typically have priority for repayment. Amounts funded from monoline insurance policies are considered restricted term borrowings in FHN’s Consolidated Condensed Statements of Condition. Except for recourse due to breaches of representations and warranties made by FHN in connection with the sale of the loans to the trust, the creditors of the trust hold no recourse to the assets of FHN.

FHN has established certain rabbi trusts related to deferred compensation plans offered to its employees. FHN contributes employee cash compensation deferrals to the trusts and directs the underlying investments made by the trusts. The assets of these trusts are available to FHN’s creditors only in the event that FHN becomes insolvent. These trusts are considered VIEs as there is no equity at risk in the trusts since FHN provided the equity interest to its employees in exchange for services rendered. FHN is considered the primary beneficiary of the rabbi trusts as it has the power to direct the activities that most significantly impact the economic performance of the rabbi trusts through its ability to direct the underlying investments made by the trusts. Additionally, FHN could potentially receive benefits or absorb losses that are significant to the trusts due to its right to receive any asset values in excess of liability payoffs and its obligation to fund any liabilities to employees that are in excess of a rabbi trust’s assets.

35

Note 13 – Variable Interest Entities (Continued)

The following table summarizes VIEs consolidated by FHN as of March 31, 2017 and December 31, 2016:

	March 31, 2017				December 31, 2016
	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	$	—		N/A	$	—		N/A
Loans, net of unearned income		32,486		N/A		35,873		N/A
Less: Allowance for loan losses		244		N/A		587		N/A
Total net loans		32,242		N/A		35,286		N/A
Other assets		150	$	76,149		283	$	74,160
Total assets	$	32,392	$	76,149	$	35,569	$	74,160
Liabilities:
Term borrowings	$	19,819		N/A	$	23,126		N/A
Other liabilities		3	$	57,559		3	$	54,746
Total liabilities	$	19,822	$	57,559	$	23,129	$	54,746

Nonconsolidated Variable Interest Entities

Low Income Housing Partnerships. First Tennessee Housing Corporation (“FTHC”), a wholly-owned subsidiary of FTBNA, makes equity investments as a limited partner in various partnerships that sponsor affordable housing projects utilizing the Low Income Housing Tax Credit (“LIHTC”) pursuant to Section 42 of the Internal Revenue Code. The purpose of these investments is to achieve a satisfactory return on capital and to support FHN’s community reinvestment initiatives. The activities of the limited partnerships include the identification, development, and operation of multi-family housing units that are leased to qualifying residential tenants generally within FHN’s primary geographic region. LIHTC partnerships are considered VIEs as FTHC, the holder of the equity investment at risk, does not have the ability to direct the activities that most significantly affect the performance of the entity through voting rights or similar rights. FTHC could absorb losses that are significant to the LIHTC partnerships as it has a risk of loss for its capital contributions and funding commitments to each partnership. The general partners are considered the primary beneficiaries as managerial functions give them the power to direct the activities that most significantly impact the entities’ economic performance and the managing members are exposed to all losses beyond FTHC’s initial capital contributions and funding commitments.

FHN accounts for all qualifying LIHTC investments under the proportional amortization method. Under this method an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense/(benefit). LIHTC investments that do not qualify for the proportional amortization method are accounted for using the equity method. Expenses associated with these investments were not significant for the three months ended March 17, 2017 and 2016. The following table summarizes the impact to the Provision/(benefit) for income taxes on the Consolidated Condensed Statements of Income for the three months ended March 31, 2017, and 2016 for LIHTC investments accounted for under the proportional amortization method.

(Dollars in thousands)	Three Months Ended March 31, 2017			Three Months Ended March 31, 2016
Provision/(benefit) for income taxes:
Amortization of qualifying LIHTC investments	$	2,278		$	2,298
Low income housing tax credits		(2,400	)		(2,523	)
Other tax benefits related to qualifying LIHTC investments		(919	)		(1,110	)

36

Note 13 – Variable Interest Entities (Continued)

Other Tax Credit Investments. First Tennessee New Markets Corporation (“FTNMC”), a wholly-owned subsidiary of FTBNA, makes equity investments through wholly-owned subsidiaries as a non-managing member in various limited liability companies (“LLCs”) that sponsor community development projects utilizing the New Market Tax Credit (“NMTC”) pursuant to Section 45 of the Internal Revenue Code. The purpose of these investments is to achieve a satisfactory return on capital and to support FHN’s community reinvestment initiatives. The activities of the LLCs include providing investment capital for low-income communities within FHN’s primary geographic region. A portion of the funding of FTNMC’s investment in a NMTC LLC is obtained via a loan from an unrelated third-party that is typically a community development enterprise. The NMTC LLCs are considered VIEs as FTNMC, the holder of the equity investment at risk, does not have the ability to direct the activities that most significantly affect the performance of the entity through voting rights or similar rights. While FTNMC could absorb losses that are significant to the NMTC LLCs as it has a risk of loss for its initial capital contributions, the managing members are considered the primary beneficiaries as managerial functions give them the power to direct the activities that most significantly impact the NMTC LLCs’ economic performance and the managing members are exposed to all losses beyond FTNMC’s initial capital contributions.

FTHC also makes equity investments as a limited partner or non-managing member in entities that receive Historic Tax Credits pursuant to Section 47 of the Internal Revenue Code. The purpose of these entities is the rehabilitation of historic buildings with the tax credits provided to incent private investment in the historic cores of cities and towns. These entities are considered VIEs as FTHC, the holder of the equity investment at risk, does not have the ability to direct the activities that most significantly affect the performance of the entity through voting rights or similar rights. FTHC could absorb losses that are significant to the entities as it has a risk of loss for its capital contributions and funding commitments to each partnership. The managing members are considered the primary beneficiaries as managerial functions give them the power to direct the activities that most significantly impact the entities’ economic performance and the managing members are exposed to all losses beyond FTHC’s initial capital contributions and funding commitments.

Small Issuer Trust Preferred Holdings. FTBNA holds variable interests in trusts which have issued mandatorily redeemable preferred capital securities (“trust preferreds”) for smaller banking and insurance enterprises. FTBNA has no voting rights for the trusts’ activities. The trusts’ only assets are junior subordinated debentures of the issuing enterprises. The creditors of the trusts hold no recourse to the assets of FTBNA. These trusts meet the definition of a VIE as the holders of the equity investment at risk do not have the power through voting rights, or similar rights, to direct the activities that most significantly impact the trusts’ economic performance. Based on the nature of the trusts’ activities and the size of FTBNA’s holdings, FTBNA could potentially receive benefits or absorb losses that are significant to the trusts regardless of whether a majority of a trust’s securities are held by FTBNA. However, since FTBNA is solely a holder of the trusts’ securities, it has no rights which would give it the power to direct the activities that most significantly impact the trusts’ economic performance and thus it is not considered the primary beneficiary of the trusts. FTBNA has no contractual requirements to provide financial support to the trusts.

On-Balance Sheet Trust Preferred Securitization. In 2007, FTBNA executed a securitization of certain small issuer trust preferreds for which the underlying trust meets the definition of a VIE as the holders of the equity investment at risk do not have the power through voting rights, or similar rights, to direct the activities that most significantly impact the entity’s economic performance. FTBNA could potentially receive benefits or absorb losses that are significant to the trust based on the size and priority of the interests it retained in the securities issued by the trust. However, since FTBNA did not retain servicing or other decision making rights, FTBNA is not the primary beneficiary as it does not have the power to direct the activities that most significantly impact the trust’s economic performance. Accordingly, FTBNA has accounted for the funds received through the securitization as a term borrowing in its Consolidated Condensed Statements of Condition. FTBNA has no contractual requirements to provide financial support to the trust.

Proprietary Residential Mortgage Securitizations. FHN holds variable interests (primarily principal-only strips) in proprietary residential mortgage securitization trusts it established prior to 2008 as a source of liquidity for its mortgage banking operations. Prior to fourth quarter 2016 these interests included MSR and interest-only strips. Except for recourse due to breaches of representations and warranties made by FHN in connection with the sale of the loans to the trusts, the creditors of the trusts hold no recourse to the assets of FHN. Additionally, FHN has no contractual requirements to provide financial support to the trusts. Based on their restrictive nature, the trusts are considered VIEs as the holders of equity at risk do not have the power through voting rights, or similar rights, to direct the activities that most significantly impact the trusts’ economic performance. While it held MSR, FHN was assumed to have the power as servicer to most significantly impact the activities of such VIEs. However, in situations where FHN did not have the ability to participate in significant portions of a securitization trust’s cash flows, FHN was not considered the primary beneficiary of the trust. Therefore, these trusts were not consolidated by FHN.

37

Note 13 – Variable Interest Entities (Continued)

Holdings & Short Positions in Agency Mortgage-Backed Securities. FHN holds securities issued by various Agency securitization trusts. Based on their restrictive nature, the trusts meet the definition of a VIE since the holders of the equity investments at risk do not have the power through voting rights, or similar rights, to direct the activities that most significantly impact the entities’ economic performance. FHN could potentially receive benefits or absorb losses that are significant to the trusts based on the nature of the trusts’ activities and the size of FHN’s holdings. However, FHN is solely a holder of the trusts’ securities and does not have the power to direct the activities that most significantly impact the trusts’ economic performance, and is not considered the primary beneficiary of the trusts. FHN has no contractual requirements to provide financial support to the trusts.

Commercial Loan Troubled Debt Restructurings. For certain troubled commercial loans, FTBNA restructures the terms of the borrower’s debt in an effort to increase the probability of receipt of amounts contractually due. Following a troubled debt restructuring, the borrower entity typically meets the definition of a VIE as the initial determination of whether an entity is a VIE must be reconsidered as events have proven that the entity’s equity is not sufficient to permit it to finance its activities without additional subordinated financial support or a restructuring of the terms of its financing. As FTBNA does not have the power to direct the activities that most significantly impact such troubled commercial borrowers’ operations, it is not considered the primary beneficiary even in situations where, based on the size of the financing provided, FTBNA is exposed to potentially significant benefits and losses of the borrowing entity. FTBNA has no contractual requirements to provide financial support to the borrowing entities beyond certain funding commitments established upon restructuring of the terms of the debt that allows for preparation of the underlying collateral for sale.

Sale Leaseback Transaction. FTB has entered into an agreement with a single asset leasing entity for the sale and leaseback of an office building. In conjunction with this transaction, FTB loaned funds to a related party of the buyer that were used for the purchase price of the building. FTB also entered into a construction loan agreement with the single asset entity for renovation of the building. Since this transaction did not qualify as a sale, it is being accounted for using the deposit method which creates a net asset or liability for all cash flows between FTB and the buyer. The buyer-lessor in this transaction meets the definition of a VIE as it does not have sufficient equity at risk since FTB is providing the funding for the purchase and renovation. A related party of the buyer-lessor has the power to direct the activities that most significantly impact the operations and could potentially receive benefits or absorb losses that are significant to the transactions, making it the primary beneficiary. Therefore, FTB does not consolidate the leasing entity.

38

Note 13 – Variable Interest Entities (Continued)

The following table summarizes FHN’s nonconsolidated VIEs as of March 31, 2017:

(Dollars in thousands)	Maximum Loss Exposure		Liability Recognized		Classification
Type
Low income housing partnerships	$	71,114	$	14,749		(a)
Other tax credit investments (b) (c)		21,210		—		Other assets
Small issuer trust preferred holdings (d)		332,959		—		Loans, net of unearned income
On-balance sheet trust preferred securitization		49,361		64,812		(e)
Proprietary residential mortgage securitizations		2,330		—		Trading securities
Holdings of agency mortgage-backed securities (d)		4,289,239		—		(f)
Commercial loan troubled debt restructurings (g)		35,295		—		Loans, net of unearned income
Sale-leaseback transaction		14,827		—		(h)

(a) Maximum loss exposure represents $56.4 million of current investments and $14.7 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 2017.

(b) A liability is not recognized as investments are written down over the life of the related tax credit.

(c) Maximum loss exposure represents current investment balance. Of the initial investment, $18.0 million was funded through loans from community development enterprises.

(d) Maximum loss exposure represents the value of current investments. A liability is not recognized as FHN is solely a holder of the trusts’ securities.

(e) Includes $112.5 million classified as Loans, net of unearned income, and $1.7 million classified as Trading securities which are offset by $64.8 million classified as Term borrowings.

(f) Includes $.5 billion classified as Trading securities and $3.8 billion classified as Securities available-for-sale.

(g) Maximum loss exposure represents $34.5 million of current receivables and $.8 million of contractual funding commitments on loans related to commercial borrowers involved in a troubled debt restructuring.

(h) Maximum loss exposure represents the current loan balance plus additional funding commitments less amounts received from the buyer-lessor.

The following table summarizes FHN’s nonconsolidated VIEs as of December 31, 2016:

(Dollars in thousands)	Maximum Loss Exposure		Liability Recognized		Classification
Type
Low income housing partnerships	$	73,582	$	17,398	(a)
Other tax credit investments (b) (c)		21,898		—	Other assets
Small issuer trust preferred holdings (d)		332,985		—	Loans, net of unearned income
On-balance sheet trust preferred securitization		49,361		64,812	(e)
Proprietary residential mortgage securitizations		2,568		—	Trading securities
Holdings of agency mortgage-backed securities (d)		4,163,313		—	(f)
Commercial loan troubled debt restructurings (g)		42,696		—	Loans, net of unearned income
Sale-leaseback transaction		11,827		—	(h)

(a) Maximum loss exposure represents $56.2 million of current investments and $17.4 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 2017.

(b) A liability is not recognized as investments are written down over the life of the related tax credit.

(c) Maximum loss exposure represents current investment balance. Of the initial investment, $18.0 million was funded through loans from community development enterprises.

(d) Maximum loss exposure represents the value of current investments. A liability is not recognized as FHN is solely a holder of the trusts’ securities.

(e) Includes $112.5 million classified as Loans, net of unearned income, and $1.7 million classified as Trading securities which are offset by $64.8 million classified as Term borrowings.

(f) Includes $.4 billion classified as Trading securities and $3.8 billion classified as Securities available-for-sale.

(g) Maximum loss exposure represents $37.5 million of current receivables and $5.2 million of contractual funding commitments on loans related to commercial borrowers involved in a troubled debt restructuring.

(h) Maximum loss exposure represents the current loan balance plus additional funding commitments less amounts received from the buyer-lessor.

39

Note 14 – Derivatives

In the normal course of business, FHN utilizes various financial instruments (including derivative contracts and credit-related agreements) through its fixed income and risk management operations, as part of its risk management strategy and as a means to meet customers’ needs. Derivative instruments are subject to credit and market risks in excess of the amount recorded on the balance sheet as required by GAAP. The contractual or notional amounts of these financial instruments do not necessarily represent the amount of credit or market risk. However, they can be used to measure the extent of involvement in various types of financial instruments. Controls and monitoring procedures for these instruments have been established and are routinely reevaluated. The Asset/Liability Committee (“ALCO”) controls, coordinates, and monitors the usage and effectiveness of these financial instruments.

Credit risk represents the potential loss that may occur if a party to a transaction fails to perform according to the terms of the contract. The measure of credit exposure is the replacement cost of contracts with a positive fair value. FHN manages credit risk by entering into financial instrument transactions through national exchanges, primary dealers or approved counterparties, and by using mutual margining and master netting agreements whenever possible to limit potential exposure. FHN also maintains collateral posting requirements with certain counterparties to limit credit risk. Commencing in first quarter 2017, a central clearinghouse revised the treatment of daily margin posted or received from collateral to legal settlements of the related derivative contracts. This change resulted in a reduction in derivative assets and liabilities and corresponding reductions in collateral posted and received as these amounts are now presented net by contract in the Consolidated Condensed Statements of Condition. This change has no effect on hedge accounting or gains/losses for the applicable derivative contracts. On March 31, 2017 and December 31, 2016, respectively, FHN had $41.9 million and $47.8 million of cash receivables and $29.4 million and $32.8 million of cash payables related to collateral posting under master netting arrangements, inclusive of collateral posted related to contracts with adjustable collateral posting thresholds and over-collateralized positions, with derivative counterparties. With exchange-traded contracts, the credit risk is limited to the clearinghouse used. For non-exchange traded instruments, credit risk may occur when there is a gain in the fair value of the financial instrument and the counterparty fails to perform according to the terms of the contract and/or when the collateral proves to be of insufficient value. See additional discussion regarding master netting agreements and collateral posting requirements later in this note under the heading “Master Netting and Similar Agreements.” Market risk represents the potential loss due to the decrease in the value of a financial instrument caused primarily by changes in interest rates or the prices of debt instruments. FHN manages market risk by establishing and monitoring limits on the types and degree of risk that may be undertaken. FHN continually measures this risk through the use of models that measure value-at-risk and earnings-at-risk.

Derivative Instruments. FHN enters into various derivative contracts both in a dealer capacity to facilitate customer transactions and as a risk management tool. Where contracts have been created for customers, FHN enters into upstream transactions with dealers to offset its risk exposure. Contracts with dealers that require central clearing are novated to a clearing agent who becomes FHN’s counterparty. Derivatives are also used as a risk management tool to hedge FHN’s exposure to changes in interest rates or other defined market risks.

Forward contracts are over-the-counter contracts where two parties agree to purchase and sell a specific quantity of a financial instrument at a specified price, with delivery or settlement at a specified date. Futures contracts are exchange-traded contracts where two parties agree to purchase and sell a specific quantity of a financial instrument at a specified price, with delivery or settlement at a specified date. Interest rate option contracts give the purchaser the right, but not the obligation, to buy or sell a specified quantity of a financial instrument, at a specified price, during a specified period of time. Caps and floors are options that are linked to a notional principal amount and an underlying indexed interest rate. Interest rate swaps involve the exchange of interest payments at specified intervals between two parties without the exchange of any underlying principal. Swaptions are options on interest rate swaps that give the purchaser the right, but not the obligation, to enter into an interest rate swap agreement during a specified period of time.

Trading Activities

FHN’s fixed income segment trades U.S. Treasury, U.S. Agency, mortgage-backed, corporate and municipal fixed income securities, and other securities for distribution to customers. When these securities settle on a delayed basis, they are considered forward contracts. Fixed income also enters into interest rate contracts, including caps, swaps, and floors, for its customers. In addition, fixed income enters into futures and option contracts to economically hedge interest rate risk associated with a portion of its securities inventory. These transactions are measured at fair value, with changes in fair value recognized currently in fixed income noninterest income. Related assets and liabilities are recorded on the Consolidated Condensed Statements of Condition as Derivative assets and Derivative liabilities. The FTN Financial Risk Committee and the Credit Risk Management Committee collaborate to mitigate credit risk related to these transactions. Credit risk is controlled through credit approvals, risk control limits, and ongoing monitoring procedures. Total trading revenues were $42.7 million and $57.6 million for the three months ended March 31, 2017 and 2016, respectively. Trading revenues are inclusive of both derivative and non-derivative financial instruments, and are included in fixed income noninterest income.

40

Note 14 – Derivatives (Continued)

The following tables summarize FHN’s derivatives associated with fixed income trading activities as of March 31, 2017 and December 31, 2016:

	March 31, 2017
(Dollars in thousands)	Notional		Assets		Liabilities
Customer Interest Rate Contracts	$	1,743,855	$	34,060	$	15,510
Offsetting Upstream Interest Rate Contracts		1,743,855		15,258		31,677
Option Contracts Purchased		60,000		86		—
Forwards and Futures Purchased		3,804,024		11,817		5,230
Forwards and Futures Sold		3,817,997		5,410		13,135

	December 31, 2016
(Dollars in thousands)	Notional		Assets		Liabilities
Customer Interest Rate Contracts	$	1,697,992	$	39,495	$	14,996
Offsetting Upstream Interest Rate Contracts		1,697,992		14,996		39,495
Option Contracts Purchased		17,500		63		—
Option Contracts Written		5,000		—		8
Forwards and Futures Purchased		2,916,750		6,257		26,659
Forwards and Futures Sold		3,085,396		27,330		6,615

Interest Rate Risk Management

FHN’s ALCO focuses on managing market risk by controlling and limiting earnings volatility attributable to changes in interest rates. Interest rate risk exists to the extent that interest-earning assets and interest-bearing liabilities have different maturity or repricing characteristics. FHN uses derivatives, primarily swaps, that are designed to moderate the impact on earnings as interest rates change. Interest paid or received for swaps utilized by FHN to hedge the fair value of long term debt is recognized as an adjustment of the interest expense of the liabilities whose risk is being managed. FHN’s interest rate risk management policy is to use derivatives to hedge interest rate risk or market value of assets or liabilities, not to speculate. In addition, FHN has entered into certain interest rate swaps and caps as a part of a product offering to commercial customers that includes customer derivatives paired with upstream offsetting market instruments that, when completed, are designed to mitigate interest rate risk. These contracts do not qualify for hedge accounting and are measured at fair value with gains or losses included in current earnings in Noninterest expense on the Consolidated Condensed Statements of Income.

FHN has designated a derivative transaction in a hedging strategy to manage interest rate risk on $400.0 million of senior debt issued by FTBNA which matures in December 2019. This qualifies for hedge accounting under ASC 815-20 using the long-haul method. FHN entered into a pay floating, receive fixed interest rate swap to hedge the interest rate risk of the senior debt. The balance sheet impact of this swap was $.3 million and $1.6 million in Derivative assets as of March 31, 2017 and December 31, 2016, respectively. There was an insignificant level of ineffectiveness related to this hedge.

FHN has designated a derivative transaction in a hedging strategy to manage interest rate risk on $500.0 million of senior debt which matures in December 2020. This qualifies for hedge accounting under ASC 815-20 using the long-haul method. FHN entered into a pay floating, receive fixed interest rate swap to hedge the interest rate risk of the senior debt. The balance sheet impact of this swap was $.5 million in Derivative assets as of March 31, 2017 and $7.3 million in Derivative liabilities as of December 31, 2016. There was an insignificant level of ineffectiveness related to this hedge.

41

Note 14 – Derivatives (Continued)

The following tables summarize FHN’s derivatives associated with interest rate risk management activities as of March 31, 2017 and December 31, 2016:

	March 31, 2017
(Dollars in thousands)	Notional		Assets		Liabilities
Customer Interest Rate Contracts Hedging
Hedging Instruments and Hedged Items:
Customer Interest Rate Contracts	$	1,450,711	$	15,401	$	15,388
Offsetting Upstream Interest Rate Contracts		1,450,711		14,053		14,277
Debt Hedging
Hedging Instruments:
Interest Rate Swaps	$	900,000	$	749		N/A
Hedged Items:
Term Borrowings		N/A		N/A	$	900,000	(a)

	December 31, 2016
(Dollars in thousands)	Notional		Assets		Liabilities
Customer Interest Rate Contracts Hedging
Hedging Instruments and Hedged Items:
Customer Interest Rate Contracts	$	1,357,920	$	17,566	$	14,277
Offsetting Upstream Interest Rate Contracts		1,357,920		14,277		18,066
Debt Hedging
Hedging Instruments:
Interest Rate Swaps	$	900,000	$	1,628	$	7,276
Hedged Items:
Term Borrowings		N/A		N/A	$	900,000	(a)

(a) Represents par value of term borrowings being hedged.

The following table summarizes gains/(losses) on FHN’s derivatives associated with interest rate risk management activities for the three months ended March 31, 2017 and 2016:

	March 31, 2017			March 31, 2016
(Dollars in thousands)	Gains/(Losses)			Gains/(Losses)
Customer Interest Rate Contracts Hedging
Hedging Instruments and Hedged Items:
Customer Interest Rate Contracts (a)	$	(3,276	)	$	12,559
Offsetting Upstream Interest Rate Contracts (a)		3,276			(12,559	)
Debt Hedging
Hedging Instruments:
Interest Rate Swaps (a)	$	(2,800	)	$	17,037
Hedged Items:
Term Borrowings (a) (b)		2,733			(16,745	)

(a) Gains/losses included in the All other expense section of the Consolidated Condensed Statements of Income.

(b) Represents gains and losses attributable to changes in fair value due to interest rate risk as designated in ASC 815-20 hedging relationships.

In first quarter 2016, FHN entered into a pay floating, receive fixed interest rate swap in a hedging strategy to manage its exposure to the variability in cash flows related to the interest payments for the following five years on $250 million principal of debt instruments, which primarily consist of held-to-maturity trust preferred loans that have variable interest payments based on 3-month LIBOR. In first quarter 2017, FHN initiated cash flow hedges of $650 million notional amount that have durations between three and seven years. The debt instruments primarily consist of held-to-maturity commercial loans that have variable interest payments based on 1-month LIBOR. These qualify for hedge accounting as cash flow hedges under ASC 815-20. Changes in the fair value of these derivatives are recorded as a component of AOCI, to the extent that the hedging relationships are effective. Amounts are reclassified from AOCI to earnings as the hedged cash flows affect earnings. FTB measures the ineffectiveness using the Hypothetical Derivative Method. AOCI is adjusted to an amount that reflects the lesser of either the cumulative change in fair value of the swaps or the cumulative change in the fair value of the hypothetical derivative instruments. To the extent that any ineffectiveness exists in the hedge relationships, the amounts are recorded in current period earnings. Interest paid or received for these swaps is recognized as an adjustment to interest income of the assets whose cash flows are being hedged.

42

Note 14 – Derivatives (Continued)

The following tables summarize FHN’s derivative activities associated with cash flow hedges as of March 31, 2017 and December 31, 2016:

	March 31, 2017
(Dollars in thousands)	Notional		Assets		Liabilities
Cash Flow Hedges
Hedging Instruments:
Interest Rate Swaps	$	900,000	$	1,286		N/A
Hedged Items:
Variability in Cash Flows Related to Debt Instruments (Primarily Loans)		N/A	$	900,000		N/A

	December 31, 2016
(Dollars in thousands)	Notional		Assets		Liabilities
Cash Flow Hedges
Hedging Instruments:
Interest Rate Swaps	$	250,000		N/A	$	2,045
Hedged Items:
Variability in Cash Flows Related to Debt Instruments (Primarily Loans)		N/A	$	250,000		N/A

The following table summarizes gains/(losses) on FHN’s derivatives associated with cash flow hedges for the three months ended March 31, 2017 and 2016:

	March 31, 2017			March 31, 2016
(Dollars in thousands)	Gains/(Losses)			Gains/(Losses)
Cash Flow Hedges
Hedging Instruments:
Interest Rate Swaps (a) (b)	$	(3,101	)	$	5,618
Hedged Items:
Variability in Cash Flows Related to Debt Instruments (Primarily Loans)		N/A			N/A

(a) Amount represents the pre-tax gains/(losses) included within AOCI.

(b) Includes approximately $1.5 million of losses expected to be reclassified into earnings in the next twelve months.

FHN hedges held-to-maturity trust preferred loans which have an initial fixed rate term before conversion to a floating rate. FHN has entered into pay fixed, receive floating interest rate swaps to hedge the interest rate risk associated with this initial term. Interest paid or received for these swaps is recognized as an adjustment of the interest income of the assets whose risk is being hedged. Basis adjustments remaining at the end of the hedge term are being amortized as an adjustment to interest income over the remaining life of the loans. Gains or losses are included in Other income and commissions on the Consolidated Condensed Statements of Income. These hedges expire in third quarter 2017.

43

Note 14 – Derivatives (Continued)

The following tables summarize FHN’s derivative activities associated with held-to-maturity trust preferred loans as of March 31, 2017 and December 31, 2016:

	March 31, 2017
(Dollars in thousands)	Notional		Assets			Liabilities
Loan Portfolio Hedging
Hedging Instruments:
Interest Rate Swaps	$	6,500		N/A		$	134
Hedged Items:
Trust Preferred Loans (a)		N/A	$	6,500	(b)		N/A

	December 31, 2016
(Dollars in thousands)	Notional		Assets			Liabilities
Loan Portfolio Hedging
Hedging Instruments:
Interest Rate Swaps	$	6,500		N/A		$	208
Hedged Items:
Trust Preferred Loans (a)		N/A	$	6,500	(b)		N/A

(a) Assets included in the Loans, net of unearned income section of the Consolidated Condensed Statements of Condition.

(b) Represents principal balance being hedged.

The following table summarizes gains/(losses) on FHN’s derivatives associated with held-to-maturity trust preferred loans for the three months ended March 31, 2017 and 2016:

	March 31, 2017			March 31, 2016
(Dollars in thousands)	Gains/(Losses)			Gains/(Losses)
Loan Portfolio Hedging
Hedging Instruments:
Interest Rate Swaps	$	74		$	43
Hedged Items:
Trust Preferred Loans (a)	$	(74	)	$	(42	)

(a) Represents gains and losses attributable to changes in fair value due to interest rate risk as designated in ASC 815-20 hedging relationships.

Other Derivatives

In conjunction with the sales of a portion of its Visa Class B shares, FHN and the purchaser entered into derivative transactions whereby FHN will make or receive cash payments whenever the conversion ratio of the Visa Class B shares into Visa Class A shares is adjusted. As of March 31, 2017 and December 31, 2016, the derivative liabilities associated with the sales of Visa Class B shares were $6.0 million and $6.2 million, respectively. See the Visa Matters section of Note 10 – Contingencies and Other Disclosures for more information regarding FHN’s Visa shares.

FHN utilizes cross currency swaps and cross currency interest rate swaps to economically hedge its exposure to foreign currency risk and interest rate risk associated with non-U.S. dollar denominated loans. As of March 31, 2017 and December 31, 2016, these loans were valued at $1.9 million and $3.8 million, respectively. The balance sheet amount and the gains/losses associated with these derivatives were not significant.

Master Netting and Similar Agreements

As previously discussed, FHN uses master netting agreements, mutual margining agreements and collateral posting requirements to minimize credit risk on derivative contracts. Master netting and similar agreements are used when counterparties have multiple derivatives contracts that allow for a “right of setoff,” meaning that a counterparty may net offsetting positions and collateral with the same counterparty under the contract to determine a net receivable or payable. The following discussion provides an overview of these arrangements which may vary due to the derivative type and market in which a derivative transaction is executed.

Interest rate derivatives are subject to agreements consistent with standard agreement forms of the International Swap and Derivatives Association (“ISDA”). Currently, all interest rate derivative contracts are entered into as over-the-counter transactions and collateral posting requirements are based on the net asset or liability position with each respective counterparty. For contracts that require central clearing, novation to a counterparty with access to a clearinghouse occurs and margin is posted. Cash margin received (posted) that is considered settlements for the derivative contracts is included in the respective derivative asset (liability) value. Cash margin that is considered collateral received (posted) for interest rate derivatives is recognized as a liability (asset) on FHN’s Consolidated Condensed Statements of Condition.

44

Note 14 – Derivatives (Continued)

Interest rate derivatives with customers that are smaller financial institutions typically require posting of collateral by the counterparty to FHN. This collateral is subject to a threshold with daily adjustments based upon changes in the level or fair value of the derivative position. Positions and related collateral can be netted in the event of default. Collateral pledged by a counterparty is typically cash or securities. The securities pledged as collateral are not recognized within FHN’s Consolidated Condensed Statements of Condition. Interest rate derivatives associated with lending arrangements share the collateral with the related loan(s). The derivative and loan positions may be netted in the event of default. For disclosure purposes, the entire collateral amount is allocated to the loan.

Interest rate derivatives with larger financial institutions entered into prior to required central clearing typically contain provisions whereby the collateral posting thresholds under the agreements adjust based on the credit ratings of both counterparties. If the credit rating of FHN and/or FTBNA is lowered, FHN could be required to post additional collateral with the counterparties. Conversely, if the credit rating of FHN and/or FTBNA is increased, FHN could have collateral released and be required to post less collateral in the future. Also, if a counterparty’s credit ratings were to decrease, FHN and/or FTBNA could require the posting of additional collateral; whereas if a counterparty’s credit ratings were to increase, the counterparty could require the release of excess collateral. Collateral for these arrangements is adjusted daily based on changes in the net fair value position with each counterparty.

The net fair value, determined by individual counterparty, of all derivative instruments with adjustable collateral posting thresholds was $31.3 million of assets and $44.1 million of liabilities on March 31, 2017, and $35.9 million of assets and $49.0 million of liabilities on December 31, 2016. As of March 31, 2017 and December 31, 2016, FHN had received collateral of $121.2 million and $137.6 million and posted collateral of $33.0 million and $39.3 million, respectively, in the normal course of business related to these agreements.

Certain agreements entered into prior to required central clearing also contain accelerated termination provisions, inclusive of the right of offset, if a counterparty’s credit rating falls below a specified level. If a counterparty’s debt rating (including FHN’s and FTBNA’s) were to fall below these minimums, these provisions would be triggered, and the counterparties could terminate the agreements and require immediate settlement of all derivative contracts under the agreements. The net fair value, determined by individual counterparty, of all derivative instruments with credit-risk-related contingent accelerated termination provisions was $30.7 million of assets and $19.2 million of liabilities on March 31, 2017, and $35.9 million of assets and $19.6 million of liabilities on December 31, 2016. As of March 31, 2017 and December 31, 2016, FHN had received collateral of $120.6 million and $137.5 million and posted collateral of $10.0 million and $12.9 million, respectively, in the normal course of business related to these contracts.

FHN’s fixed income segment buys and sells various types of securities for its customers. When these securities settle on a delayed basis, they are considered forward contracts, and are generally not subject to master netting agreements. For futures and options, FHN transacts through a third party, and the transactions are subject to margin and collateral maintenance requirements. In the event of default, open positions can be offset along with the associated collateral.

For this disclosure, FHN considers the impact of master netting and other similar agreements which allow FHN to settle all contracts with a single counterparty on a net basis and to offset the net derivative asset or liability position with the related securities and cash collateral. The application of the collateral cannot reduce the net derivative asset or liability position below zero, and therefore any excess collateral is not reflected in the following tables.

The following table provides details of derivative assets and collateral received as presented on the Consolidated Condensed Statements of Condition as of March 31, 2017 and December 31, 2016:

							Gross amounts not offset in the Statements of Condition
(Dollars in thousands)	Gross amounts of recognized assets		Gross amounts offset in the Statements of Condition		Net amounts of assets presented in the Statements of Condition (a)		Derivative liabilities available for offset			Collateral Received			Net amount
Derivative assets:
March 31, 2017 (b)	$	80,807	$	—	$	80,807	$	(18,674	)	$	(46,189	)	$	15,944
December 31, 2016 (b)		87,962		—		87,962		(25,953	)		(52,888	)		9,121

(a) Included in Derivative assets on the Consolidated Condensed Statements of Condition. As of March 31, 2017 and December 31, 2016, $17.3 million and $33.7 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.

(b) Amounts are comprised entirely of interest rate derivative contracts.

45

Note 14 – Derivatives (Continued)

The following table provides details of derivative liabilities and collateral pledged as presented on the Consolidated Condensed Statements of Condition as of March 31, 2017 and December 31, 2016:

							Gross amounts not offset in the Statements of Condition
(Dollars in thousands)	Gross amounts of recognized liabilities		Gross amounts offset in the Statements of Condition		Net amounts of liabilities presented in the Statements of Condition (a)		Derivative assets available for offset			Collateral pledged			Net amount
Derivative liabilities:
March 31, 2017 (b)	$	76,986	$	—	$	76,986	$	(18,674	)	$	(55,378	)	$	2,934
December 31, 2016 (b)		96,363		—		96,363		(25,953	)		(60,746	)		9,664

(a) Included in Derivative liabilities on the Consolidated Condensed Statements of Condition. As of March 31, 2017 and December 31, 2016, $24.4 million and $39.5 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.

(b) Amounts are comprised entirely of interest rate derivative contracts.

46

Note 15 – Master Netting and Similar Agreements—Repurchase, Reverse Repurchase, and Securities Borrowing Transactions

For repurchase, reverse repurchase and securities borrowing transactions, FHN and each counterparty have the ability to offset all open positions and related collateral in the event of default. Due to the nature of these transactions, the value of the collateral for each transaction approximates the value of the corresponding receivable or payable. For repurchase agreements through FHN’s fixed income business (Securities purchased under agreements to resell and Securities sold under agreements to repurchase), transactions are collateralized by securities which are delivered on the settlement date and are maintained throughout the term of the transaction. For FHN’s repurchase agreements through banking activities (Securities sold under agreements to repurchase), securities are typically pledged at settlement and not released until maturity. For asset positions, the collateral is not included on FHN’s Consolidated Condensed Statements of Condition. For liability positions, securities collateral pledged by FHN is generally represented within FHN’s trading or available-for-sale securities portfolios.

For this disclosure, FHN considers the impact of master netting and other similar agreements that allow FHN to settle all contracts with a single counterparty on a net basis and to offset the net asset or liability position with the related securities collateral. The application of the collateral cannot reduce the net asset or liability position below zero, and therefore any excess collateral is not reflected in the tables below.

The following table provides details of Securities purchased under agreements to resell as presented on the Consolidated Condensed Statements of Condition and collateral pledged by counterparties as of March 31, 2017 and December 31, 2016:

							Gross amounts not offset in the Statements of Condition
(Dollars in thousands)	Gross amounts of recognized assets		Gross amounts offset in the Statements of Condition		Net amounts of assets presented in the Statements of Condition		Offsetting securities sold under agreements to repurchase			Securities collateral (not recognized on FHN’s Statements of Condition)			Net amount
Securities purchased under agreements to resell:
March 31, 2017	$	835,222	$	—	$	835,222	$	(150	)	$	(828,596	)	$	6,476
December 31, 2016		613,682		—		613,682		(1,628	)		(603,813	)		8,241

The following table provides details of Securities sold under agreements to repurchase as presented on the Consolidated Condensed Statements of Condition and collateral pledged by FHN as of March 31, 2017 and December 31, 2016:

							Gross amounts not offset in the Statements of Condition
(Dollars in thousands)	Gross amounts of recognized liabilities		Gross amounts offset in the Statements of Condition		Net amounts of liabilities presented in the Statements of Condition		Offsetting securities purchased under agreements to resell			Securities Collateral			Net amount
Securities sold under agreements to repurchase:
March 31, 2017	$	406,354	$	—	$	406,354	$	(150	)	$	(406,185	)	$	19
December 31, 2016		453,053		—		453,053		(1,628	)		(451,414	)		11

47

Note 15 – Master Netting and Similar Agreements—Repurchase, Reverse Repurchase, and Securities Borrowing Transactions (Continued)

Due to the short duration of Securities sold under agreements to repurchase and the nature of collateral involved, the risks associated with these transactions are considered minimal. The following tables provide details, by collateral type, of the remaining contractual maturity of Securities sold under agreements to repurchase as of March 31, 2017 and December 31, 2016:

	March 31, 2017
(Dollars in thousands)	Overnight and Continuous		Up to 30 Days		Total
Securities sold under agreements to repurchase:
U.S. treasuries	$	19,344	$	—	$	19,344
Government agency issued MBS		345,156		—		345,156
Government agency issued CMO		29,383		12,471		41,854
Total Securities sold under agreements to repurchase	$	393,883	$	12,471	$	406,354
	December 31, 2016
(Dollars in thousands)	Overnight and Continuous		Up to 30 Days		Total
Securities sold under agreements to repurchase:
U.S. treasuries	$	14,864	$	—	$	14,864
Government agency issued MBS		421,771		—		421,771
Government agency issued CMO		—		16,418		16,418
Total Securities sold under agreements to repurchase	$	436,635	$	16,418	$	453,053

48

Note 16 – Fair Value of Assets & Liabilities

FHN groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. This hierarchy requires FHN to maximize the use of observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. Each fair value measurement is placed into the proper level based on the lowest level of significant input. These levels are:

• Level 1—Valuation is based upon quoted prices for identical instruments traded in active markets.

• Level 2—Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market.

• Level 3—Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models, and similar techniques.

Transfers between fair value levels are recognized at the end of the fiscal quarter in which the associated change in inputs occurs.

49

Note 16 – Fair Value of Assets & Liabilities (Continued)

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, 2017:

	March 31, 2017
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Trading securities—fixed income:
U.S. treasuries	$	—	$	107,264	$	—	$	107,264
Government agency issued MBS		—		323,058		—		323,058
Government agency issued CMO		—		213,949		—		213,949
Other U.S. government agencies		—		88,613		—		88,613
States and municipalities		—		83,872		—		83,872
Corporate and other debt		—		346,743		5		346,748
Equity, mutual funds, and other		—		1,476		—		1,476
Total trading securities—fixed income		—		1,164,975		5		1,164,980
Trading securities—mortgage banking		—		—		2,330		2,330
Loans held-for-sale		—		1,224		21,221		22,445
Securities available-for-sale:
U.S. treasuries		—		100		—		100
Government agency issued MBS		—		2,159,922		—		2,159,922
Government agency issued CMO		—		1,592,311		—		1,592,311
Equity, mutual funds, and other		25,221		—		—		25,221
Total securities available-for-sale		25,221		3,752,333		—		3,777,554
Other assets:
Deferred compensation assets		34,109		—		—		34,109
Derivatives, forwards and futures		17,227		—		—		17,227
Derivatives, interest rate contracts		—		80,893		—		80,893
Total other assets		51,336		80,893		—		132,229
Total assets	$	76,557	$	4,999,425	$	23,556	$	5,099,538
Trading liabilities—fixed income:
U.S. treasuries	$	—	$	657,059	$	—	$	657,059
States and municipalities		—		11,048		—		11,048
Corporate and other debt		—		180,083		—		180,083
Total trading liabilities—fixed income		—		848,190		—		848,190
Other liabilities:
Derivatives, forwards and futures		18,365		—		—		18,365
Derivatives, interest rate contracts		—		76,986		—		76,986
Derivatives, other		—		46		5,950		5,996
Total other liabilities		18,365		77,032		5,950		101,347
Total liabilities	$	18,365	$	925,222	$	5,950	$	949,537

50

Note 16 – Fair Value of Assets & Liabilities (Continued)

The following table presents the balance of assets and liabilities measured at fair value on a recurring basis as of December 31, 2016:

	December 31, 2016
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Trading securities—fixed income:
U.S. treasuries	$	—	$	146,988	$	—	$	146,988
Government agency issued MBS		—		256,611		—		256,611
Government agency issued CMO		—		150,058		—		150,058
Other U.S. government agencies		—		52,314		—		52,314
States and municipalities		—		60,351		—		60,351
Corporate and other debt		—		227,934		5		227,939
Equity, mutual funds, and other		—		242		—		242
Total trading securities—fixed income		—		894,498		5		894,503
Trading securities—mortgage banking		—		—		2,568		2,568
Loans held-for-sale		—		2,345		21,924		24,269
Securities available-for-sale:
U.S. treasuries		—		100		—		100
Government agency issued MBS		—		2,208,687		—		2,208,687
Government agency issued CMO		—		1,547,958		—		1,547,958
Equity, mutual funds, and other		25,249		—		—		25,249
Total securities available-for-sale		25,249		3,756,745		—		3,781,994
Other assets:
Mortgage servicing rights		—		—		985		985
Deferred compensation assets		32,840		—		—		32,840
Derivatives, forwards and futures		33,587		—		—		33,587
Derivatives, interest rate contracts		—		88,025		—		88,025
Derivatives, other		—		42		—		42
Total other assets		66,427		88,067		985		155,479
Total assets	$	91,676	$	4,741,655	$	25,482	$	4,858,813
Trading liabilities—fixed income:
U.S. treasuries	$	—	$	381,229	$	—	$	381,229
Other U.S. government agencies		—		844		—		844
Corporate and other debt		—		179,775		—		179,775
Total trading liabilities—fixed income		—		561,848		—		561,848
Other liabilities:
Derivatives, forwards and futures		33,274		—		—		33,274
Derivatives, interest rate contracts		—		96,371		—		96,371
Derivatives, other		—		7		6,245		6,252
Total other liabilities		33,274		96,378		6,245		135,897
Total liabilities	$	33,274	$	658,226	$	6,245	$	697,745

51

Note 16 – Fair Value of Assets & Liabilities (Continued)

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, 2017 and 2016, on a recurring basis are summarized as follows:

	Three Months Ended March 31, 2017
(Dollars in thousands)	Trading securities			Loans held- for-sale			Net derivative liabilities
Balance on January 1, 2017	$	2,573		$	21,924		$	(6,245	)
Total net gains/(losses) included in:
Net income		17			922			(1	)
Purchases		—			32			—
Settlements		(255	)		(1,574	)		296
Net transfers into/(out of) Level 3		—			(83	)(b)		—
Balance on March 31, 2017	$	2,335		$	21,221		$	(5,950	)
Net unrealized gains/(losses) included in net income	$	(27	)(a)	$	922	(a)	$	(1	)(c)

	Three Months Ended March 31, 2016
(Dollars in thousands)	Trading securities			Loans held- for-sale			Securities available- for-sale		Mortgage servicing rights, net			Net derivative liabilities
Balance on January 1, 2016	$	4,377		$	27,418		$	1,500	$	1,841		$	(4,810	)
Total net gains/(losses) included in:
Net income		147			342			—		—			(109	)
Purchases		—			148			—		—			—
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)

(a) Primarily included in mortgage banking income on the Consolidated Condensed Statements of Income.

(b) Transfers out of loans held-for-sale level 3 measured on a recurring basis generally reflect movements into real estate acquired by foreclosure (level 3 nonrecurring).

(c) Included in Other expense.

52

Note 16 – Fair Value of Assets & Liabilities (Continued)

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 lower of cost or market (“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, 2017, and December 31, 2016, respectively, the following tables provide the level of valuation assumptions used to determine each adjustment and the related carrying value.

	Carrying value at March 31, 2017
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Loans held-for-sale—SBAs	$	—	$	3,476	$	—	$	3,476
Loans held-for-sale—first mortgages		—		—		606		606
Loans, net of unearned income (a)		—		—		30,838		30,838
Real estate acquired by foreclosure (b)		—		—		10,259		10,259
Other assets (c)		—		—		28,667		28,667

	Carrying value at December 31, 2016
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Loans held-for-sale—SBAs	$	—	$	4,286	$	—	$	4,286
Loans held-for-sale—first mortgages		—		—		638		638
Loans, net of unearned income (a)		—		—		31,070		31,070
Real estate acquired by foreclosure (b)		—		—		11,235		11,235
Other assets (c)		—		—		29,609		29,609

(a) 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.

(b) 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.

(c) Represents tax credit investments accounted for under the equity method.

For assets measured on a nonrecurring basis which were still held on the consolidated balance sheet at period end, the following table provides information about the fair value adjustments recorded during the three months ended March 31, 2017 and 2016:

	Net gains/(losses)
	Three months ended March 31,
(Dollars in thousands)	2017			2016
Loans held-for-sale—SBAs	$	(33	)	$	—
Loans held-for-sale—first mortgages		3			5
Loans, net of unearned income (a)		484			(4,672	)
Real estate acquired by foreclosure (b)		(445	)		(536	)
Other assets (c)		(942	)		(706	)
	$	(933	)	$	(5,909	)

(a) Write-downs on these loans are recognized as part of provision for loan losses.

(b) Represents 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.

(c) Represents tax credit investments accounted for under the equity method.

In first quarter 2016, FHN’s Regional Banking segment recognized $3.7 million of impairments on long-lived assets associated with efforts to more efficiently utilize its bank branch locations. The affected branch locations represented a mixture of owned and leased sites. The fair values of owned sites were determined using estimated sales prices from appraisals less estimated costs to sell. The fair values of leased sites were determined using a discounted cash flow approach, based on the revised estimated useful lives of the related assets. Both measurement methodologies are considered Level 3 valuations.

53

Note 16 – Fair Value of Assets & Liabilities (Continued)

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, 2017 and December 31, 2016:

(Dollars in Thousands)
Level 3 Class	Fair Value at March 31, 2017		Valuation Techniques	Unobservable Input	Values Utilized
Loans held-for-sale - residential real estate		21,827	Discounted cash flow	Prepayment speeds - First mortgage	2% - 12%
				Prepayment speeds - HELOC	3% - 15%
				Foreclosure losses	50% - 70%
				Loss severity trends - First mortgage	5% - 50% of UPB
				Loss severity trends - HELOC	15% - 100% of UPB
Derivative liabilities, other		5,950	Discounted cash flow	Visa covered litigation resolution amount	$4.4 billion - $5.2 billion
				Probability of resolution scenarios	10% - 30%
				Time until resolution	21 - 51 months
Loans, net of unearned income (a)		30,838	Appraisals from comparable properties	Marketability adjustments for specific properties	0% - 10% of appraisal
			Other collateral valuations	Borrowing base certificates adjustment	20% - 50% of gross value
				Financial Statements/Auction values adjustment	0% - 25% of reported value
Real estate acquired by foreclosure (b)		10,259	Appraisals from comparable properties	Adjustment for value changes since appraisal	0% - 10% of appraisal
Other assets (c)		28,667	Discounted cash flow	Adjustments to current sales yields for specific properties	0% - 15% adjustment to yield
			Appraisals from comparable properties	Marketability adjustments for specific properties	0% - 25% of appraisal

(a) 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.

(b) 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.

(c) Represents tax credit investments accounted for under the equity method.

54

Note 16 – Fair Value of Assets & Liabilities (Continued)

(Dollars in Thousands)
Level 3 Class	Fair Value at December 31, 2016		Valuation Techniques	Unobservable Input	Values Utilized
Loans held-for-sale - residential real estate		22,562	Discounted cash flow	Prepayment speeds - First mortgage	2% - 13%
				Prepayment speeds - HELOC	3% - 15%
				Foreclosure Losses	50% - 70%
				Loss severity trends - First mortgage	5% - 50% of UPB
				Loss severity trends - HELOC	15% - 100% of UPB
Derivative liabilities, other		6,245	Discounted cash flow	Visa covered litigation resolution amount	$4.4 billion - $5.2 billion
				Probability of resolution scenarios	10% - 30%
				Time until resolution	24 - 54 months
Loans, net of unearned income (a)		31,070	Appraisals from comparable properties	Marketability adjustments for specific properties	0% - 10% of appraisal
			Other collateral valuations	Borrowing base certificates adjustment	20% - 50% of gross value
				Financial Statements/Auction values adjustment	0% - 25% of reported value
Real estate acquired by foreclosure (b)		11,235	Appraisals from comparable properties	Adjustment for value changes since appraisal	0% - 10% of appraisal
Other assets (c)		29,609	Discounted cash flow	Adjustments to current sales yields for specific properties	0% - 15% adjustment to yield
			Appraisals from comparable properties	Marketability adjustments for specific properties	0% - 25% of appraisal

(a) 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.

(b) 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.

(c) Represents tax credit investments accounted for under the equity method.

Loans held-for-sale. Foreclosure losses and prepayment rates are significant unobservable inputs used in the fair value measurement of FHN’s residential real estate loans held-for-sale. Loss severity trends are also assessed to evaluate the reasonableness of fair value estimates resulting from discounted cash flows methodologies as well as to estimate fair value for newly repurchased loans and loans that are near foreclosure. Significant increases (decreases) in any of these inputs in isolation would result in significantly lower (higher) fair value measurements. All observable and unobservable inputs are re-assessed quarterly. Fair value measurements are reviewed at least quarterly by FHN’s Corporate Accounting Department.

Derivative liabilities. In conjunction with the sales of portions of its Visa Class B shares, FHN and the purchaser entered into derivative transactions whereby FHN will make, or receive, cash payments whenever the conversion ratio of the Visa Class B shares into Visa Class A shares is adjusted. FHN uses a discounted cash flow methodology in order to estimate the fair value of FHN’s derivative liabilities associated with its prior sales of Visa Class B shares. The methodology includes estimation of both the resolution amount for Visa’s Covered Litigation matters as well as the length of time until the resolution occurs. Significant increases (decreases) in either of these inputs in isolation would result in significantly higher (lower) fair value measurements for the derivative liabilities. Additionally, FHN performs a probability weighted multiple resolution scenario to calculate the estimated fair value of these derivative liabilities. Assignment of higher (lower) probabilities to the larger potential resolution scenarios would result in an increase (decrease) in the estimated fair value of the derivative liabilities. Since this estimation process requires application of judgment in developing significant unobservable inputs used to determine the possible outcomes and the probability weighting assigned to each scenario, these derivatives have been classified within Level 3 in fair value measurements disclosures. The valuation inputs and process are discussed with senior and executive management when significant events affecting the estimate of fair value occur. Inputs are compared to information obtained from the public issuances and filings of Visa, Inc. as well as public information released by other participants in the applicable litigation matters.

55

Note 16 – Fair Value of Assets & Liabilities (Continued)

Loans, net of unearned income and Real estate acquired by foreclosure. Collateral-dependent loans and Real estate acquired by foreclosure are primarily valued using appraisals based on sales of comparable properties in the same or similar markets. Multiple appraisal firms are utilized to ensure that estimated values are consistent between firms. This process occurs within FHN’s Credit Risk Management (commercial) and Default Servicing functions (primarily consumer). The Credit Risk Management Committee reviews dispositions and additions of foreclosed assets annually. Back testing is performed during the year through comparison to ultimate disposition values. Other collateral (receivables, inventory, equipment, etc.) is valued through borrowing base certificates, financial statements and/or auction valuations. These valuations are discounted based on the quality of reporting, knowledge of the marketability/collectability of the collateral and historical disposition rates.

Other assets – tax credit investments. The estimated fair value of tax credit investments accounted for under the equity method is generally determined in relation to the yield (i.e., future tax credits to be received) an acquirer of these investments would expect in relation to the yields experienced on current new issue and/or secondary market transactions. Thus, as tax credits are recognized, the future yield to a market participant is reduced, resulting in consistent impairment of the individual investments. Individual investments are reviewed for impairment quarterly, which may include the consideration of additional marketability discounts related to specific investments which typically includes consideration of the underlying property’s appraised value. Unusual valuation adjustments and the associated triggering events are discussed with senior and executive management when appropriate. A portfolio review is conducted annually, with the assistance of a third party, to assess the reasonableness of current valuations.

Fair Value Option

FHN has elected the fair value option on a prospective basis for almost all types of mortgage loans originated for sale purposes under the Financial Instruments Topic (“ASC 825”). FHN determined that the election reduces certain timing differences and better matches changes in the value of such loans with changes in the value of derivatives and forward delivery commitments used as economic hedges for these assets at the time of election.

Repurchased loans are recognized within loans held-for-sale at fair value at the time of repurchase, which includes consideration of the credit status of the loans and the estimated liquidation value. FHN has elected to continue recognition of these loans at fair value in periods subsequent to reacquisition. Due to the credit-distressed nature of the vast majority of repurchased loans and the related loss severities experienced upon repurchase, FHN believes that the fair value election provides a more timely recognition of changes in value for these loans that occur subsequent to repurchase. Absent the fair value election, these loans would be subject to valuation at the LOCOM value, which would prevent subsequent values from exceeding the initial fair value, determined at the time of repurchase, but would require recognition of subsequent declines in value. Thus, the fair value election provides for a more timely recognition of any potential future recoveries in asset values while not affecting the requirement to recognize subsequent declines in value.

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, 2017
(Dollars in thousands)	Fair value carrying amount		Aggregate unpaid principal		Fair value carrying amount less aggregate unpaid principal
Residential real estate loans held-for-sale reported at fair value:
Total loans	$	22,444	$	32,427	$	(9,983	)
Nonaccrual loans		6,689		12,305		(5,616	)
Loans 90 days or more past due and still accruing		120		158		(38	)
	December 31, 2016
(Dollars in thousands)	Fair value carrying amount		Aggregate unpaid principal		Fair value carrying amount less aggregate unpaid principal
Residential real estate loans held-for-sale reported at fair value:
Total loans	$	24,269	$	35,262	$	(10,993	)
Nonaccrual loans		6,775		12,910		(6,135	)
Loans 90 days or more past due and still accruing		211		331		(120	)

56

Note 16 – Fair Value of Assets & Liabilities (Continued)

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)	2017		2016
Changes in fair value included in net income:
Mortgage banking noninterest income
Loans held-for-sale	$	922	$	342

For the three months ended March 31, 2017, and 2016, the amounts for residential real estate loans held-for-sale include gains of $.2 million and $.1 million, respectively, in pretax earnings that are attributable to changes in instrument-specific credit risk. The portion of the fair value adjustments related to credit risk was determined based on estimated default rates and estimated loss severities. Interest income on residential real estate loans held-for-sale measured at fair value is calculated based on the note rate of the loan and is recorded in the interest income section of the Consolidated Condensed Statements of Income as interest on loans held-for-sale.

Determination of Fair Value

In accordance with ASC 820-10-35, fair values are based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following describes the assumptions and methodologies used to estimate the fair value of financial instruments recorded at fair value in the Consolidated Condensed Statements of Condition and for estimating the fair value of financial instruments for which fair value is disclosed under ASC 825-10-50.

Short-term financial assets. Federal funds sold, securities purchased under agreements to resell, and interest bearing deposits with other financial institutions and the Federal Reserve are carried at historical cost. The carrying amount is a reasonable estimate of fair value because of the relatively short time between the origination of the instrument and its expected realization.

Trading securities and trading liabilities. Trading securities and trading liabilities are recognized at fair value through current earnings. Trading inventory held for broker-dealer operations is included in trading securities and trading liabilities. Broker-dealer long positions are valued at bid price in the bid-ask spread. Short positions are valued at the ask price. Inventory positions are valued using observable inputs including current market transactions, LIBOR and U.S. treasury curves, credit spreads, and consensus prepayment speeds. Trading loans are valued using observable inputs including current market transactions, swap rates, mortgage rates, and consensus prepayment speeds.

Trading securities also include retained interests in prior securitizations that qualify as financial assets, which include primarily principal-only strips. FHN uses inputs including yield curves, credit spreads, and prepayment speeds to determine the fair value of principal-only strips.

Securities available-for-sale. Securities available-for-sale includes the investment portfolio accounted for as available-for-sale under ASC 320-10-25, federal bank stock holdings, and short-term investments in mutual funds. Valuations of available-for-sale securities are performed using observable inputs obtained from market transactions in similar securities. Typical inputs include LIBOR and U.S. treasury curves, consensus prepayment estimates, and credit spreads. When available, broker quotes are used to support these valuations.

Investments in the stock of the Federal Reserve Bank and Federal Home Loan Banks are recognized at historical cost in the Consolidated Condensed Statements of Condition which is considered to approximate fair value. Short-term investments in mutual funds are measured at the funds’ reported closing net asset values. Investments in equity securities are valued using quoted market prices when available. Cost method investments are valued at historical cost less any recorded impairment due to the illiquid nature of these investments.

Securities held-to-maturity. Securities held-to-maturity reflects debt securities for which management has the positive intent and ability to hold to maturity. To the extent possible, valuations of held-to-maturity securities are performed using observable inputs obtained from market transactions in similar securities. Typical inputs include LIBOR and U.S. treasury curves and credit spreads. Debt securities with limited trading activity are valued using a discounted cash flow model that incorporates a combination of observable and unobservable inputs. Primary observable inputs include contractual cash flows, the treasury curve and credit spreads from similar instruments. Significant unobservable inputs include estimated credit spreads for individual issuers and instruments as well as prepayment speeds, as applicable.

57

Note 16 – Fair Value of Assets & Liabilities (Continued)

Loans held-for-sale. Residential real estate loans held-for-sale are valued using current transaction prices and/or values on similar assets when available, including committed bids for specific loans or loan portfolios. Uncommitted bids may be adjusted based on other available market information. For all other loans FHN determines the fair value of residential real estate loans held-for-sale using a discounted cash flow model which incorporates both observable and unobservable inputs. Inputs include current mortgage rates for similar products, estimated prepayment rates, foreclosure losses, and various loan performance measures (delinquency, LTV, credit score). Adjustments for delinquency and other differences in loan characteristics are typically reflected in the model’s discount rates. Loss severity trends and the value of underlying collateral are also considered in assessing the appropriate fair value for severely delinquent loans and loans in foreclosure. The valuation of HELOCs also incorporates estimated cancellation rates for loans expected to become delinquent.

Loans held-for-sale also include loans made by the Small Business Administration (“SBA”), which are accounted for at LOCOM. The fair value of SBA loans is determined using an expected cash flow model that utilizes observable inputs such as the spread between LIBOR and prime rates, consensus prepayment speeds, and the treasury curve. The fair value of other non-residential real estate loans held-for-sale is approximated by their carrying values based on current transaction values.

Loans, net of unearned income. Loans, net of unearned income are recognized at the amount of funds advanced, less charge-offs and an estimation of credit risk represented by the allowance for loan losses. The fair value estimates for disclosure purposes differentiate loans based on their financial characteristics, such as product classification, vintage, loan category, pricing features, and remaining maturity.

The fair value of floating rate loans is estimated through comparison to recent market activity in loans of similar product types, with adjustments made for differences in loan characteristics. In situations where market pricing inputs are not available, fair value is considered to approximate book value due to the monthly repricing for commercial and consumer loans, with the exception of floating rate 1-4 family residential mortgage loans which reprice annually and will lag movements in market rates. The fair value for floating rate 1-4 family mortgage loans is calculated by discounting future cash flows to their present value. Future cash flows are discounted to their present value by using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same time period. Prepayment assumptions based on historical prepayment speeds and industry speeds for similar loans have been applied to the floating rate 1-4 family residential mortgage portfolio.

The fair value of fixed rate loans is estimated through comparison to recent market activity in loans of similar product types, with adjustments made for differences in loan characteristics. In situations where market pricing inputs are not available, fair value is estimated by discounting future cash flows to their present value. Future cash flows are discounted to their present value by using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same time period. Prepayment assumptions based on historical prepayment speeds and industry speeds for similar loans have been applied to the fixed rate mortgage and installment loan portfolios.

For all loan portfolio classes, adjustments are made to reflect liquidity or illiquidity of the market. Such adjustments reflect discounts that FHN believes are consistent with what a market participant would consider in determining fair value given current market conditions.

Individually impaired loans are measured using either a discounted cash flow methodology or the estimated fair value of the underlying collateral less costs to sell, if the loan is considered collateral-dependent. In accordance with accounting standards, the discounted cash flow analysis utilizes the loan’s effective interest rate for discounting expected cash flow amounts. Thus, this analysis is not considered a fair value measurement in accordance with ASC 820. However, the results of this methodology are considered to approximate fair value for the applicable loans. Expected cash flows are derived from internally-developed inputs primarily reflecting expected default rates on contractual cash flows. For loans measured using the estimated fair value of collateral less costs to sell, fair value is estimated using appraisals of the collateral. Collateral values are monitored and additional write-downs are recognized if it is determined that the estimated collateral values have declined further. Estimated costs to sell are based on current amounts of disposal costs for similar assets. Carrying value is considered to reflect fair value for these loans.

Derivative assets and liabilities. The fair value for forwards and futures contracts is based on current transactions involving identical securities. Futures contracts are exchange-traded and thus have no credit risk factor assigned as the risk of non-performance is limited to the clearinghouse used.

Valuations of other derivatives (primarily interest rate related swaps) are based on inputs observed in active markets for similar instruments. Typical inputs include the LIBOR curve, Overnight Indexed Swap (“OIS”) curve, option volatility, and option skew. In measuring the fair value of these derivative assets and liabilities, FHN has elected to consider credit risk based on the net exposure to individual counterparties. Credit risk is mitigated for these instruments through the use of mutual margining and master netting agreements as well as collateral posting requirements. For derivative contracts with daily cash margin requirements that are considered settlements, the daily margin amount is netted within derivative assets or liabilities. Any remaining credit risk related to interest rate derivatives is considered in determining fair value through evaluation of additional factors such as customer loan grades and debt

58

Note 16 – Fair Value of Assets & Liabilities (Continued)

ratings. Foreign currency related derivatives also utilize observable exchange rates in the determination of fair value. The determination of fair value for FHN’s derivative liabilities associated with its prior sales of Visa Class B shares are classified within Level 3 in the fair value measurements disclosure as previously discussed in the unobservable inputs discussion.

Real estate acquired by foreclosure. Real estate acquired by foreclosure primarily consists of properties that have been acquired in satisfaction of debt. These properties are carried at the lower of the outstanding loan amount or estimated fair value less estimated costs to sell the real estate. Estimated fair value is determined using appraised values with subsequent adjustments for deterioration in values that are not reflected in the most recent appraisal.

Nonearning assets. For disclosure purposes, nonearning financial assets include cash and due from banks, accrued interest receivable, and fixed income receivables. Due to the short-term nature of cash and due from banks, accrued interest receivable, and fixed income receivables, the fair value is approximated by the book value.

Other assets. For disclosure purposes, other assets consist of tax credit investments and deferred compensation assets that are considered financial assets. Tax credit investments accounted for under the equity method are written down to estimated fair value quarterly based on the estimated value of the associated tax credits which incorporates estimates of required yield for hypothetical investors. The fair value of all other tax credit investments is estimated using recent transaction information with adjustments for differences in individual investments. Deferred compensation assets are recognized at fair value, which is based on quoted prices in active markets.

Defined maturity deposits. The fair value of these deposits is estimated by discounting future cash flows to their present value. Future cash flows are discounted by using the current market rates of similar instruments applicable to the remaining maturity. For disclosure purposes, defined maturity deposits include all time deposits.

Undefined maturity deposits. In accordance with ASC 825, the fair value of these deposits is approximated by the book value. For the purpose of this disclosure, undefined maturity deposits include demand deposits, checking interest accounts, savings accounts, and money market accounts.

Short-term financial liabilities. The fair value of federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings are approximated by the book value. The carrying amount is a reasonable estimate of fair value because of the relatively short time between the origination of the instrument and its expected realization.

Term borrowings. The fair value of term borrowings is based on quoted market prices or dealer quotes for the identical liability when traded as an asset. When pricing information for the identical liability is not available, relevant prices for similar debt instruments are used with adjustments being made to the prices obtained for differences in characteristics of the debt instruments. If no relevant pricing information is available, the fair value is approximated by the present value of the contractual cash flows discounted by the investor’s yield which considers FHN’s and FTBNA’s debt ratings.

Other noninterest-bearing liabilities. For disclosure purposes, other noninterest-bearing financial liabilities include accrued interest payable and fixed income payables. Due to the short-term nature of these liabilities, the book value is considered to approximate fair value.

Loan commitments. Fair values of these commitments are based on fees charged to enter into similar agreements taking into account the remaining terms of the agreements and the counterparties’ credit standing.

Other commitments. Fair values of these commitments are based on fees charged to enter into similar agreements.

The following fair value estimates are determined as of a specific point in time utilizing various assumptions and estimates. The use of assumptions and various valuation techniques, as well as the absence of secondary markets for certain financial instruments, reduces the comparability of fair value disclosures between financial institutions. Due to market illiquidity, the fair values for loans, net of unearned income, loans held-for-sale, and term borrowings as of March 31, 2017 and December 31, 2016, involve the use of significant internally-developed pricing assumptions for certain components of these line items. The assumptions and valuations utilized for this disclosure are considered to reflect inputs that market participants would use in transactions involving these instruments as of the measurement date. The valuations of legacy assets, particularly consumer loans within the non-strategic segment and TRUP loans, are influenced by changes in economic conditions since origination and risk perceptions of the financial sector. These considerations affect the estimate of a potential acquirer’s cost of capital and cash flow volatility assumptions from these assets and the resulting fair value measurements may depart significantly from FHN’s internal estimates of the intrinsic value of these assets.

Assets and liabilities that are not financial instruments have not been included in the following table such as the value of long-term relationships with deposit and trust customers, premises and equipment, goodwill and other intangibles, deferred taxes, and certain other assets and other liabilities. Additionally, these measurements are solely for financial instruments as of the measurement date and do not consider the earnings potential of our various business lines. Accordingly, the total of the fair value amounts does not represent, and should not be construed to represent, the underlying value of FHN.

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Note 16 – Fair Value of Assets & Liabilities (Continued)

The following table summarizes the book value and estimated fair value of financial instruments recorded in the Consolidated Condensed Statements of Condition as of March 31, 2017:

	March 31, 2017
	Book		Fair 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	$	11,610,889	$	—	$	—	$	11,520,970	$	11,520,970
Commercial real estate		2,142,423		—		—		2,112,591		2,112,591
Consumer:
Consumer real estate		4,407,131		—		—		4,325,035		4,325,035
Permanent mortgage		393,342		—		—		393,859		393,859
Credit card & other		334,321		—		—		334,868		334,868
Total loans, net of unearned income and allowance for loan losses		18,888,106		—		—		18,687,323		18,687,323
Short-term financial assets:
Interest-bearing cash		2,106,597		2,106,597		—		—		2,106,597
Federal funds sold		31,495		—		31,495		—		31,495
Securities purchased under agreements to resell		835,222		—		835,222		—		835,222
Total short-term financial assets		2,973,314		2,106,597		866,717		—		2,973,314
Trading securities (a)		1,167,310		—		1,164,975		2,335		1,167,310
Loans held-for-sale		105,456		—		4,700		100,756		105,456
Securities available-for-sale (a) (b)		3,939,278		25,221		3,752,333		161,724		3,939,278
Securities held-to-maturity		14,354		—		—		14,803		14,803
Derivative assets (a)		98,120		17,227		80,893		—		98,120
Other assets:
Tax credit investments		96,824		—		—		94,884		94,884
Deferred compensation assets		34,109		34,109		—		—		34,109
Total other assets		130,933		34,109		—		94,884		128,993
Nonearning assets:
Cash & due from banks		369,290		369,290		—		—		369,290
Fixed income receivables		168,315		—		168,315		—		168,315
Accrued interest receivable		61,832		—		61,832		—		61,832
Total nonearning assets		599,437		369,290		230,147		—		599,437
Total assets	$	27,916,308	$	2,552,444	$	6,099,765	$	19,061,825	$	27,714,034
Liabilities:
Deposits:
Defined maturity	$	1,385,818	$	—	$	1,391,170	$	—	$	1,391,170
Undefined maturity		22,094,023		—		22,094,023		—		22,094,023
Total deposits		23,479,841		—		23,485,193		—		23,485,193
Trading liabilities (a)		848,190		—		848,190		—		848,190
Short-term financial liabilities:
Federal funds purchased		504,805		—		504,805		—		504,805
Securities sold under agreements to repurchase		406,354		—		406,354		—		406,354
Other short-term borrowings		79,454		—		79,454		—		79,454
Total short-term financial liabilities		990,613		—		990,613		—		990,613
Term borrowings:
Real estate investment trust-preferred		46,049		—		—		49,350		49,350
Term borrowings—new market tax credit investment		18,000		—		—		17,934		17,934
Borrowings secured by residential real estate		19,819		—		—		18,828		18,828
Other long term borrowings		951,168		—		967,792		—		967,792
Total term borrowings		1,035,036		—		967,792		86,112		1,053,904
Derivative liabilities (a)		101,347		18,365		77,032		5,950		101,347
Other noninterest-bearing liabilities:
Fixed income payables		21,116		—		21,116		—		21,116
Accrued interest payable		17,696		—		17,696		—		17,696
Total other noninterest-bearing liabilities		38,812		—		38,812		—		38,812
Total liabilities	$	26,493,839	$	18,365	$	26,407,632	$	92,062	$	26,518,059

(a) Classes are detailed in the recurring and nonrecurring measurement tables.

(b) Level 3 includes restricted investments in FHLB-Cincinnati stock of $87.9 million and FRB stock of $68.6 million.

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Note 16 – Fair Value of Assets & Liabilities (Continued)

The following table summarizes the book value and estimated fair value of financial instruments recorded in the Consolidated Statements of Condition as of December 31, 2016:

	December 31, 2016
	Book		Fair 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	$	12,058,689	$	—	$	—	$	11,918,374	$	11,918,374
Commercial real estate		2,101,671		—		—		2,078,306		2,078,306
Consumer:
Consumer real estate		4,473,395		—		—		4,385,669		4,385,669
Permanent mortgage		406,836		—		—		404,930		404,930
Credit card & other		346,861		—		—		347,577		347,577
Total loans, net of unearned income and allowance for loan losses		19,387,452		—		—		19,134,856		19,134,856
Short-term financial assets:
Interest-bearing cash		1,060,034		1,060,034		—		—		1,060,034
Federal funds sold		50,838		—		50,838		—		50,838
Securities purchased under agreements to resell		613,682		—		613,682		—		613,682
Total short-term financial assets		1,724,554		1,060,034		664,520		—		1,724,554
Trading securities (a)		897,071		—		894,498		2,573		897,071
Loans held-for-sale		111,248		—		6,631		104,617		111,248
Securities available-for-sale (a) (b)		3,943,499		25,249		3,756,745		161,505		3,943,499
Securities held-to-maturity		14,347		—		—		14,773		14,773
Derivative assets (a)		121,654		33,587		88,067		—		121,654
Other assets:
Tax credit investments		100,105		—		—		98,400		98,400
Deferred compensation assets		32,840		32,840		—		—		32,840
Total other assets		132,945		32,840		—		98,400		131,240
Nonearning assets:
Cash & due from banks		373,274		373,274		—		—		373,274
Fixed income receivables		57,411		—		57,411		—		57,411
Accrued interest receivable		62,887		—		62,887		—		62,887
Total nonearning assets		493,572		373,274		120,298		—		493,572
Total assets	$	26,826,342	$	1,524,984	$	5,530,759	$	19,516,724	$	26,572,467
Liabilities:
Deposits:
Defined maturity	$	1,355,133	$	—	$	1,361,104	$	—	$	1,361,104
Undefined maturity		21,317,230		—		21,317,230		—		21,317,230
Total deposits		22,672,363		—		22,678,334		—		22,678,334
Trading liabilities (a)		561,848		—		561,848		—		561,848
Short-term financial liabilities:
Federal funds purchased		414,207		—		414,207		—		414,207
Securities sold under agreements to repurchase		453,053		—		453,053		—		453,053
Other short-term borrowings		83,177		—		83,177		—		83,177
Total short-term financial liabilities		950,437		—		950,437		—		950,437
Term borrowings:
Real estate investment trust-preferred		46,032		—		—		49,350		49,350
Term borrowings—new market tax credit investment		18,000		—		—		17,918		17,918
Borrowings secured by residential real estate		23,126		—		—		21,969		21,969
Other long term borrowings		953,498		—		965,066		—		965,066
Total term borrowings		1,040,656		—		965,066		89,237		1,054,303
Derivative liabilities (a)		135,897		33,274		96,378		6,245		135,897
Other noninterest-bearing liabilities:
Fixed income payables		21,002		—		21,002		—		21,002
Accrued interest payable		10,336		—		10,336		—		10,336
Total other noninterest-bearing liabilities		31,338		—		31,338		—		31,338
Total liabilities	$	25,392,539	$	33,274	$	25,283,401	$	95,482	$	25,412,157

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

(a) Classes are detailed in the recurring and nonrecurring measurement tables.

(b) Level 3 includes restricted investments in FHLB-Cincinnati stock of $87.9 million and FRB stock of $68.6 million.

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Note 16 – Fair Value of Assets & Liabilities (Continued)

The following table presents the contractual amount and fair value of unfunded loan commitments and standby and other commitments as of March 31, 2017 and December 31, 2016:

	Contractual Amount				Fair Value
(Dollars in thousands)	March 31, 2017		December 31, 2016		March 31, 2017		December 31, 2016
Unfunded Commitments:
Loan commitments	$	9,430,508	$	8,744,649	$	2,612	$	2,924
Standby and other commitments		273,029		277,549		4,230		4,037

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

General Information	64
Forward-Looking Statements	65
Financial Summary	65
Statement of Condition Review	72
Capital	74
Asset Quality	77
Risk Management	91
Repurchase Obligations, Off-Balance Sheet Arrangements, and Other Contractual Obligations	95
Market Uncertainties and Prospective Trends	99
Critical Accounting Policies	100

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FIRST HORIZON NATIONAL CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS

GENERAL INFORMATION

First Horizon National Corporation (“FHN”) began as a community bank chartered in 1864 and as of March 31, 2017, was one of the 40 largest publicly traded banking organizations in the United States in terms of asset size.

FHN’s two major brands—First Tennessee and FTN Financial—provide customers with a broad range of products and services. First Tennessee provides consumer and commercial banking services throughout Tennessee and other selected markets and is the largest bank headquartered in the state of Tennessee. FTN Financial (“FTNF”) is an industry leader in fixed income sales, trading, and strategies for institutional clients in the U.S. and abroad.

FHN is composed of the following operating segments:

• Regional banking offers financial products and services including traditional lending and deposit-taking to consumer and commercial customers in Tennessee and other selected markets. Regional banking provides investments, financial planning, trust services and asset management, along with credit card and cash management services. Additionally, the regional banking segment includes correspondent banking which provides credit, depository, and other banking-related services to other financial institutions nationally.

• Fixed income provides financial services for depository and non-depository institutions through the sale and distribution of fixed income securities, loan sales, portfolio advisory services, and derivative sales.

• Corporate consists of unallocated corporate expenses, expense on subordinated debt issuances, bank-owned life insurance (“BOLI”), 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, derivative valuation adjustments related to prior sales of Visa Class B shares, and acquisition-related costs.

• Non-strategic includes exited businesses and wind-down national consumer lending activities, other discontinued products, and loan portfolios and service lines.

On May 4, 2017, FHN and Capital Bank Financial Corp. (“Capital Bank”) announced that they had entered into an agreement and plan of merger under which FHN will acquire Capital Bank, which is headquartered in Charlotte, North Carolina. Capital Bank reported approximately $10 billion of assets at March 31, 2017. The transaction is expected to close in fourth quarter 2017, subject to regulatory approvals, approval by shareholders of FHN and of Capital Bank, and other customary conditions.

On April 3, 2017, FTN Financial acquired substantially all of the assets and assumed substantially all of the liabilities of Coastal Securities, Inc. (“Coastal”), a national leader in the trading, securitization, and analysis of Small Business Administration (“SBA”) loans, for approximately $130 million in cash. Coastal, which was based in Houston, TX, also traded United States Department of Agriculture (“USDA”) loans and fixed income products and provided municipal underwriting and advisory services to its clients. Coastal’s government-guaranteed loan products, combined with FTN Financial’s existing SBA trading activities, have established an additional major product sector for FTN Financial.

On September 16, 2016, FTBNA acquired $537.4 million of UPB in restaurant franchise loans from GE Capital. The acquired loans were combined with existing FTBNA relationships to establish a franchise finance specialty banking business.

Refer to Note 2 – Acquisitions and Divestitures in this report and in Exhibit 13 to FHN’s Annual Report on Form 10-K for the year ended December 31, 2016 for additional information.

For the purpose of this management’s discussion and analysis (“MD&A”), earning assets have been expressed as averages, unless otherwise noted, and loans have been disclosed net of unearned income. The following financial discussion should be read with the accompanying audited Consolidated Condensed Financial Statements and Notes in this report. Additional information including the 2016 financial statements, notes, and MD&A is provided in Exhibit 13 to FHN’s Annual Report on Form 10-K for the year ended December 31, 2016.

Non-GAAP Measures

Certain measures are included in the narrative and tables in this MD&A that are “non-GAAP”, meaning (under U.S. financial reporting rules) they are not presented in accordance with generally accepted accounting principles (“GAAP”) in the U.S. and also are not codified in U.S. banking regulations currently applicable to FHN. Although other entities may use calculation methods that differ from those used by FHN for non-GAAP measures, FHN’s management believes such measures are relevant to understanding the capital position or financial results of FHN. Non-GAAP measures are reported to FHN’s management and Board of Directors through various internal reports.

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Presentation of regulatory measures, even those which are not GAAP, provide a meaningful base for comparability to other financial institutions subject to the same regulations as FHN, as demonstrated by their use by banking regulators in reviewing capital adequacy of financial institutions. Although not GAAP terms, these regulatory measures are not considered “non-GAAP” under U.S. financial reporting rules as long as their presentation conforms to regulatory standards. Regulatory measures used in this MD&A include: common equity tier 1 capital, generally defined as common equity less goodwill, other intangibles, and certain other required regulatory deductions; tier 1 capital, generally defined as the sum of core capital (including common equity and instruments that cannot be redeemed at the option of the holder) adjusted for certain items under risk based capital regulations; and risk-weighted assets (“RWA”), which is a measure of total on- and off-balance sheet assets adjusted for credit and market risk, used to determine regulatory capital ratios.

The non-GAAP measure presented in this filing is return on average tangible common equity (“ROTCE”). Refer to table 23 for a reconciliation of the non-GAAP to GAAP measure and presentation of the most comparable GAAP item.

FORWARD-LOOKING STATEMENTS

This MD&A contains forward-looking statements with respect to FHN’s beliefs, plans, goals, expectations, and estimates. Forward-looking statements are statements that are not a representation of historical information but instead pertain to future operations, strategies, financial results, or other developments. The words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “should,” “is likely,” “will,” “going forward,” and other expressions that indicate future events and trends identify forward-looking statements.

Forward-looking statements are necessarily based upon estimates and assumptions that are inherently subject to significant business, operational, economic and competitive uncertainties and contingencies, many of which are beyond FHN’s control, and many of which, with respect to future business decisions and actions (including acquisitions and divestitures), are subject to change. Examples of uncertainties and contingencies include, among other important factors: global, general and local economic and business conditions, including economic recession or depression; the stability or volatility of values and activity in the residential housing and commercial real estate markets; potential requirements for FHN to repurchase, or compensate for losses from, previously sold or securitized mortgages or securities based on such mortgages; potential claims alleging mortgage servicing failures, individually, on a class basis, or as master servicer of securitized loans; potential claims relating to participation in government programs, especially lending or other financial services programs; expectations of and actual timing and amount of interest rate movements, including the slope and shape of the yield curve, which can have a significant impact on a financial services institution; market and monetary fluctuations, including fluctuations in mortgage markets; inflation or deflation; customer, investor, competitor, regulatory, and legislative responses to any or all of these conditions; the financial condition of borrowers and other counterparties; competition within and outside the financial services industry; geopolitical developments including possible terrorist activity; natural disasters; effectiveness and cost-efficiency of FHN’s hedging practices; technological changes; fraud, theft, or other incursions through conventional, electronic, or other means affecting FHN directly or affecting its customers, business counterparties or competitors; demand for FHN’s product offerings; new products and services in the industries in which FHN operates; the increasing use of new technologies to interact with customers and others; and critical accounting estimates. Other factors are those inherent in originating, selling, servicing, and holding loans and loan-based assets, including prepayment risks, pricing concessions, fluctuation in U.S. housing and other real estate prices, fluctuation of collateral values, and changes in customer profiles. Additionally, the actions of the Securities and Exchange Commission (“SEC”), the Financial Accounting Standards Board (“FASB”), the Office of the Comptroller of the Currency (“OCC”), the Board of Governors of the Federal Reserve System (“Federal Reserve” or “Fed”), the Federal Deposit Insurance Corporation (“FDIC”), the Financial Industry Regulatory Authority (“FINRA”), the U.S. Department of the Treasury (“U.S. Treasury”), the Municipal Securities Rulemaking Board (“MSRB”), the Consumer Financial Protection Bureau (“CFPB”), the Financial Stability Oversight Council (“Council”), the Public Company Accounting Oversight Board (“PCAOB”), and other regulators and agencies; pending, threatened, or possible future regulatory, administrative, and judicial outcomes, actions, and proceedings; current or future Executive orders; changes in laws and regulations applicable to FHN; and FHN’s success in executing its business plans and strategies and managing the risks involved in the foregoing, could cause actual results to differ, perhaps materially, from those contemplated by the forward-looking statements.

FHN assumes no obligation to update or revise any forward-looking statements that are made in this Quarterly Report of which this MD&A is a part or otherwise from time to time. Actual results could differ and expectations could change, possibly materially, because of one or more factors, including those presented in this Forward-Looking Statements section, in other sections of this MD&A, in other parts of and exhibits to this Quarterly Report on Form 10-Q for the period ended March 31, 2017, and in documents incorporated into this Quarterly Report.

FINANCIAL SUMMARY

For first quarter 2017, FHN reported net income available to common shareholders of $54.0 million, or $.23 per diluted share, compared to net income available to common shareholders of $47.8 million, or $.20 per diluted share, in first quarter 2016. Results improved in first quarter 2017 relative to the prior year due to an increase in net interest income (“NII”) and a decline in expenses but was somewhat muted by lower noninterest income.

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Total revenue was $306.6 million in first quarter 2017 compared to $306.4 million in first quarter 2016 as an increase in NII was largely offset by lower fixed income product revenue.

Noninterest expense was $222.2 million in first quarter 2017, down 2 percent from $226.9 million in first quarter 2016. The decline in expenses was due in large part to higher expenses in the prior year resulting from a $3.7 million impairment charge recognized in first quarter 2016 associated with efforts to more efficiently utilize bank branch locations and lower personnel-related expenses in first quarter 2017 compared to a year ago.

On a consolidated basis, credit quality remained strong in first quarter 2017, with non-performing loans, net charge-offs, delinquencies, and the allowance for loan losses all decreasing relative to the prior year. The provision for loan losses was a provision credit of $1.0 million in first quarter 2017 compared to provision expense of $3.0 million in first quarter 2016.

Return on average common equity (“ROE”) and ROTCE improved in first quarter 2017 to 9.40 percent and 10.33 percent, respectively from 8.53 percent and 9.44 percent, respectively in first quarter 2016. Return on average assets (“ROA”) was .82 percent in first quarter 2017 compared to .79 percent in first quarter 2016. Common equity tier 1, Tier 1, Total capital, and Leverage ratios were 10.20 percent, 11.35 percent, 12.39 percent, and 9.31 percent, respectively, in first quarter 2017 compared to 10.33 percent, 11.56 percent, 12.73 percent and 9.40 percent, respectively, in first quarter 2016. Average assets increased 8 percent to $28.8 billion in first quarter 2017 from $26.6 billion in first quarter 2016. Average loans increased 9 percent to $18.8 billion and average deposits increased 14 percent to $22.8 billion for the three months ended March 31, 2017 relative to the prior year. Average Shareholders’ equity increased to $2.7 billion in first quarter 2017 from $2.6 billion in first quarter 2016.

BUSINESS LINE REVIEW

Regional Banking

Pre-tax income within the regional banking segment increased 42 percent to $101.2 million in first quarter 2017 from $71.4 million in first quarter 2016. The increase in pre-tax income was primarily driven by higher net interest income coupled with lower loan loss provisioning.

Total revenue increased 9 percent, or $20.8 million, to $252.4 million in first quarter 2017, from $231.6 million in first quarter 2016, driven by an increase in NII. The increase in NII was largely due to higher average balances of commercial loans and a higher earnings credit on deposits. Noninterest income was $59.0 million and $59.3 million in first quarter 2017 and 2016, respectively. The decrease in noninterest income was primarily driven by a decline in fees from deposit transactions and cash management, but was partially offset by an increase in brokerage, management fees, and commission income from the Bank’s wealth management group. The decrease in fees from deposit transactions and cash management was primarily due to lower non-sufficient funds (“NSF”)/overdraft fees in first quarter 2017 driven by changes in consumer behavior and a modification of billing practices. The increase in brokerage, management fees, and commission income was primarily driven by increases in advisory and annuity income as a result of higher transaction volume and favorable market conditions.

Provision expense was $3.1 million in first quarter 2017 compared to $14.8 million in first quarter 2016. The net decrease in provision in first quarter 2017 compared to the prior year reflects continued strong performance in both the commercial and consumer portfolios relative to a year ago and historically low net charge-offs which continued to drive lower loss rates. First quarter 2017 net charge-offs were $1.2 million compared to $9.3 million a year ago.

Noninterest expense was $148.1 million and $145.4 million in first quarter 2017 and 2016, respectively. The increase in noninterest expense was primarily due to an increase in personnel-related expenses in first quarter 2017 relative to first quarter 2016, and to a lesser extent, increases in operations services and FDIC premium expenses. These increases were somewhat offset by $3.7 million of fixed asset impairment charges recognized in the prior year associated with efforts to more efficiently utilize bank branch locations and a recovery from a vendor recognized in first quarter 2017 related to a previous overbilling. The increase in personnel expense was largely driven by expenses associated with strategic hires in expansion markets and specialty areas, as well as higher incentive expense associated with loan/deposit growth and retention initiatives. The increase in operations services expense was primarily related to an increase in third party fees associated with FHN’s online digital banking platform and the increase in FDIC premium expense was due in large part to balance sheet growth.

Fixed Income

Pre-tax income in the fixed income segment was $3.3 million in first quarter 2017 compared to $11.2 million in first quarter 2016. NII decreased $1.5 million from $2.7 million in first quarter 2016 to $1.2 million in first quarter 2017. The decline in NII was due to lower net inventory positions driven by reduced customer activity. Fixed income product revenue decreased 26 percent to $42.7 million in first quarter 2017 from $57.6 million in first quarter 2016, as average daily revenue (“ADR”) declined to $689 thousand in first quarter 2017 from $944 thousand in first quarter 2016 reflecting lower activity due to rate increases and relatively low levels of market volatility. Other product revenue decreased $1.4 million from $9.5 million in first quarter 2016 to $8.1 million in first quarter 2017, primarily driven by lower fees from portfolio advisory services and loan and derivative sales. Noninterest expense decreased 17

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percent, or $9.9 million, to $48.7 million in first quarter 2017 from $58.6 million in first quarter 2016. The expense decline during first quarter 2017 was primarily the result of lower variable compensation associated with the decrease in fixed income product revenue in first quarter 2017, somewhat offset by an increase in legal fees.

Corporate

The pre-tax loss for the corporate segment was $25.5 million in first quarter 2017 compared to $22.1 million in first quarter 2016. Net interest expense was $14.1 million and $14.4 million, respectively in first quarter 2017 and 2016. Noninterest income (including securities gain/losses) was $5.5 million in first quarter 2017, down from $5.7 million in first quarter 2016. The decrease in noninterest income was the result of a $1.7 million gain from an exchange of approximately $294 million of available-for-sale (“AFS”) debt securities recognized in 2016, the impact of which was somewhat offset by an increase in deferred compensation income in first quarter 2017 compared to the prior year. Deferred compensation income fluctuates with changes in the market value of the underlying investments and is mirrored by changes in deferred compensation expense which is included in personnel expense. Noninterest expense increased to $16.9 million in first quarter 2017 from $13.5 million in first quarter 2016, due in part to higher deferred compensation expense and a loss related to cash flow derivatives.

Non-Strategic

The non-strategic segment had pre-tax income of $6.5 million in first quarter 2017 compared to $16.0 million in first quarter 2016. The decline in results was driven by a lower loan loss provision credit in first quarter 2017 relative to the prior year, coupled with a decline in revenues. Total revenue was $10.9 million in first quarter 2017 down from $13.6 million in first quarter 2016. NII declined 19 percent to $9.3 million in first quarter 2017, consistent with the run-off of the non-strategic loan portfolios. Noninterest income (including securities gains/losses) decreased to $1.7 million in first quarter 2017 from $2.2 million in first quarter 2016.

The provision for loan losses within the non-strategic segment was a provision credit of $4.1 million in first quarter 2017 compared to a provision credit of $11.8 million in the prior year. Overall, the non-strategic segment continued to reflect stable performance combined with lower loan balances as reserves declined by $2.0 million from December 31, 2016, to $46.0 million as of March 31, 2017. Losses remain historically low as the non-strategic segment had net recoveries of $2.1 million in first quarter 2017 versus net recoveries of $.1 million a year ago.

Noninterest expense was $8.6 million in first quarter 2017 compared to $9.4 million in first quarter 2016. Generally, most expense categories declined given the continued wind-down of the legacy businesses.

INCOME STATEMENT REVIEW

Total consolidated revenue was $306.6 million in first quarter 2017 compared to $306.4 million in first quarter 2016, as an increase in NII was partially offset by a decrease in fixed income product revenue. Total expenses decreased 2 percent to $222.2 million in first quarter 2017 from $226.9 million in first quarter 2016. The expense decrease was largely the result of a $3.7 million impairment charge recognized in first quarter 2016 associated with efforts to more efficiently utilize bank branch locations and lower personnel-related expenses in first quarter 2017 relative to the prior year.

NET INTEREST INCOME

Net interest income increased 10 percent, or $17.6 million, to $189.7 million in first quarter 2017 from $172.1 million in first quarter 2016. The increase in NII was primarily the result of loan growth within Regional Banking and the favorable impact of higher interest rates on loans. To a lesser extent, lower long-term funding costs due to lower average balances of debt and an increase in loan fees relative to first quarter 2016 also positively impacted NII. These increases were partially offset by the continued run-off the non-strategic loan portfolios, the negative impact of fewer days in the quarter relative to first quarter 2016, a decrease in interest income associated with payments received on non-performing loans recognized on a cash basis, and lower average balances of trading securities. Average earning assets were $26.6 billion in first quarter 2017 compared to $24.4 billion in first quarter 2016. The 9 percent increase in average earning assets in first quarter 2017 was primarily driven by loan growth within the regional bank and higher average balances of excess cash held at the Federal Reserve (“Fed”). These increases were somewhat offset by continued run-off of the non-strategic loan portfolios, a decline in average fixed income trading securities and a decrease in securities purchased under agreements to resell.

For purposes of computing yields and the net interest margin, FHN adjusts net interest income to reflect tax exempt income on an equivalent pre-tax basis which provides comparability of net interest income arising from both taxable and tax-exempt sources. The consolidated net interest margin improved to 2.92 percent in first quarter 2017 from 2.88 percent in first quarter 2016. The net interest spread was 2.77 percent in first quarter 2017, up 3 basis points from 2.74 percent in first quarter 2016. The favorable impact of higher interest rates on loans, lower average balances of trading securities, and lower long-term funding costs all contributed to the increase in NIM, but were somewhat offset by an increase in average excess cash held at the Fed.

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Table 1—Net Interest Margin

	Three Months Ended March 31
	2017			2016
Assets:
Earning assets:
Loans, net of unearned income:
Commercial loans		3.86	%		3.58	%
Consumer loans		4.13			4.07
Total loans, net of unearned income		3.94			3.73
Loans held-for-sale		4.64			4.13
Investment securities:
U.S. treasuries		0.98			0.98
U.S. government agencies		2.59			2.46
States and municipalities (a)		9.33			6.70
Corporate bonds		5.25			5.25
Other		3.03			2.59
Total investment securities		2.63			2.48
Trading securities		2.84			2.87
Other earning assets:
Federal funds sold		1.28			1.26
Securities purchased under agreements to resell		0.35			0.11
Interest bearing cash		0.81			0.50
Total other earning assets		0.70			0.34
Interest income / total earning assets		3.37	%		3.23	%
Liabilities:
Interest-bearing liabilities:
Interest-bearing deposits:
Savings		0.39	%		0.21	%
Other interest-bearing deposits		0.29			0.18
Time deposits		0.82			0.73
Total interest-bearing deposits		0.39			0.25
Federal funds purchased		0.77			0.51
Securities sold under agreements to repurchase		0.09			0.05
Fixed income trading liabilities		2.39			2.14
Other short-term borrowings		1.24			0.97
Term borrowings		2.98			2.32
Interest expense / total interest-bearing liabilities		0.60			0.49
Net interest spread		2.77	%		2.74	%
Effect of interest-free sources used to fund earning assets		0.15			0.14
Net interest margin (b)		2.92	%		2.88	%

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

(a) 2017 increase driven by the maturity of a lower-yielding municipal bond.

(b) Calculated using total net interest income adjusted for FTE assuming a statutory federal income tax rate of 35 percent and, where applicable, state income taxes.

FHN’s net interest margin is primarily impacted by balance sheet factors such as interest-bearing cash levels, deposit balances, trading inventory levels, commercial loan volume, as well as loan fees, cash basis income, and changes in short-term interest rates. FHN’s balance sheet is positioned to benefit primarily from a rise in short-term interest rates. For 2017, an increase in NIM will depend on the levels of interest-bearing cash (higher balances typically compress margin), extent of Fed interest rate increases, commercial loan balances, particularly in specialty loan portfolios, as well as levels of trading inventory balances (higher balances also typically compress margin).

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PROVISION FOR LOAN LOSSES

The provision for loan losses is the charge to earnings that management determines to be necessary to maintain the ALLL at a sufficient level reflecting management’s estimate of probable incurred losses in the loan portfolio. The provision for loan losses was a credit of $1.0 million in first quarter 2017 compared to a provision expense of $3.0 million in first quarter 2016. During first quarter 2017, FHN experienced continued overall improvement in the loan portfolio as evidenced by the consolidated net recovery of $.9 million. The ALLL decreased $.1 million from year-end to $202.0 million as of March 31, 2017. For additional information about the provision for loan losses refer to the Regional Banking and Non-Strategic sections of the Business Line Review section in this MD&A. For additional information about general asset quality trends refer to Asset Quality—Trend Analysis of First Quarter 2017 in this MD&A.

NONINTEREST INCOME

Noninterest income (including securities gains/(losses)) was $116.9 million in first quarter 2017 compared to $134.3 million in first quarter 2016. In first quarter 2017 noninterest income was 38 percent of total revenue compared to 44 percent of total revenues in first quarter 2016. The decrease in noninterest income in first quarter 2017 relative to a year ago was primarily driven by lower fixed income product revenue.

Fixed Income Noninterest Income

Fixed income noninterest income was $50.7 million in first quarter 2017, down 24 percent from $67.0 million in first quarter 2016, reflecting lower activity due to rate increases and relatively low levels of market volatility. Revenue from other products decreased 15 percent to $8.0 million in first quarter 2017 from $9.4 million in first quarter 2016, largely driven by lower fees from portfolio advisory services and loan and derivative sales. The following table summarizes FHN’s fixed income noninterest income for the three months ended March 31, 2017 and 2016.

Table 2—Fixed Income Noninterest Income

	Three Months Ended March 31				Percent Change
(Dollars in thousands)	2017		2016
Noninterest income:
Fixed income	$	42,727	$	57,583		(26	)%
Other product revenue		7,951		9,394		(15	)%
Total fixed income noninterest income	$	50,678	$	66,977		(24	)%

Deposit Transactions and Cash Management

Fees from deposit transactions and cash management activities were $24.6 million in first quarter 2017, down $2.3 million from $26.8 million in first quarter 2016. The decrease was primarily the result of lower NSF/overdraft fees in first quarter 2017 driven by changes in consumer behavior and a modification of billing practices.

Brokerage, Management Fees and Commissions

Noninterest income from brokerage, management fees and commissions was $11.9 million in first quarter 2017, up 14 percent from $10.4 million in first quarter 2016. The increase was primarily driven by higher advisory and annuity income as a result of increased transaction volume and favorable market conditions.

Securities Gains/(Losses)

In first quarter 2016, FHN recognized net securities gains of $1.6 million, which was primarily the result of a $1.7 million gain on an exchange of approximately $294 million of AFS debt securities. Net securities gains were not material in first quarter 2017.

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Other Noninterest Income

Other income includes revenues from other service charges, ATM and interchange fees, revenue related to deferred compensation plans (which are mirrored by changes in noninterest expense), electronic banking fees, mortgage banking (primarily within the non-strategic segment), letter of credit fees, insurance commissions, and various other fees.

Revenue from all other income and commissions increased to $14.4 million in first quarter 2017 from $13.3 million in first quarter 2016. The increase in all other income and commissions was primarily due to an increase in deferred compensation income. Deferred compensation income fluctuates with changes in the market value of the underlying investments and is mirrored by changes in deferred compensation expense which is included in personnel expense. The following table provides detail regarding FHN’s other income.

Table 3—Other Income

	Three Months Ended March 31				Percent Change
(Dollars in thousands)	2017		2016
Other income:
Other service charges	$	2,984	$	2,713		10	%
ATM interchange fees		2,778		2,958		(6	)%
Deferred compensation (a)		1,827		329		NM
Electronic banking fees		1,323		1,397		(5	)%
Mortgage banking		1,261		1,273		(1	)%
Letter of credit fees		1,036		1,061		(2	)%
Insurance commissions		883		487		81	%
Other		2,299		3,071		(25	)%
Total	$	14,391	$	13,289		8	%

NM – Not meaningful

(a) Deferred compensation market value adjustments are mirrored by changes in deferred compensation expense which is included in employee compensation, incentives, and benefits expense.

NONINTEREST EXPENSE

Total noninterest expense decreased 2 percent, or $4.7 million, to $222.2 million in first quarter 2017 from $226.9 million in first quarter 2016. The decrease in noninterest expense was due in large part to a $3.7 million fixed asset impairment charge recognized in first quarter 2016 associated with efforts to more efficiently utilize bank branch locations and lower personnel-related expenses in 2017 compared to a year ago.

Employee Compensation, Incentives, and Benefits

Employee compensation, incentives, and benefits (personnel expense), the largest component of noninterest expense, decreased 2 percent, or $2.2 million, to $134.9 million in first quarter 2017 from $137.2 million in first quarter 2016. The decrease in personnel expense was driven by a decrease in variable compensation associated with lower fixed income product sales revenue within FHN’s fixed income operating segment relative to first quarter 2016. This decrease was partially offset by an increase in personnel expenses associated with strategic hires in expansion markets and specialty areas, as well as higher incentive expense associated with loan/deposit growth and retention initiatives within the regional banking segment in first quarter 2017. Additionally, deferred compensation expense increased in first quarter 2017, relative to first quarter 2016, further offsetting the decline in personnel expense.

Operations Services

Operations services expense increased 10 percent to $10.9 million in first quarter 2017 from $9.9 million in first quarter 2016, primarily related to an increase in third party fees associated with FHN’s online digital banking platform.

FDIC Premium Expense

FDIC premium expense was $5.7 million in first quarter 2017, compared to $4.9 million in first quarter 2016. The increase in FDIC premium expense was due in large part to balance sheet growth.

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Other Noninterest Expense

Other expense includes other insurance and tax expense, travel and entertainment expenses, costs associated with employee training and dues, customer relations expenses, tax credit investments expenses, supplies, miscellaneous loan costs, expenses associated with foreclosed properties, losses from litigation and regulatory matters, and various other expenses.

All other expenses decreased 15 percent to $18.8 million in first quarter 2017 from $22.1 million in first quarter 2016. The decrease was primarily driven by a $3.7 million fixed asset impairment charge recognized in first quarter 2016 associated with efforts to more efficiently utilize bank branch locations. Additionally, other insurance and taxes decreased from $3.3 million in first quarter 2016 to $2.4 million in first quarter 2017 primarily driven by favorable adjustments to franchise taxes related to community reinvestment efforts. A recovery from a vendor recognized in first quarter 2017 related to a previous overbilling also favorably impacted expense in 2017, but was offset by a loss related to cash flow derivatives.

Table 4—Other Expense

	Three Months Ended March 31						Percent Change
(Dollars in thousands)	2017			2016
Other expense:
Other insurance and taxes	$	2,390		$	3,313			(28	)%
Travel and entertainment		2,348			2,062			14	%
Employee training and dues		1,543			1,390			11	%
Customer relations		1,336			1,879			(29	)%
Tax credit investments		942			706			33	%
Supplies		863			1,026			(16	)%
Miscellaneous loan costs		622			717			(13	)%
Foreclosed real estate		204			(258	)		NM
Litigation and regulatory matters		(292	)		(475	)		39	%
Other		8,831			11,719			(25	)%
Total	$	18,787		$	22,079			(15	)%

NM – Not meaningful

INCOME TAXES

FHN recorded an income tax provision of $27.1 million in first quarter 2017, compared to $24.2 million in first quarter 2016. The effective tax rate for the quarters ended March 31, 2017 and 2016 was approximately 32 percent. FHN’s effective tax rate is favorably affected by recurring items such as bank-owned life insurance, tax-exempt income, and credits and other tax benefits from affordable housing investments. The company’s effective tax rate also may be affected by items that may occur in any given period but are not consistent from period to period, such as changes in the deferred tax asset valuation allowance and changes in unrecognized tax benefits.

A deferred tax asset (“DTA”) or deferred tax liability (“DTL”) is recognized for the tax consequences of temporary differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The tax consequence is calculated by applying enacted statutory tax rates, applicable to future years, to these temporary differences. As of March 31, 2017, FHN’s gross DTA (net of a valuation allowance) and gross DTL were $290.2 million and $96.1 million, respectively, resulting in a net DTA of $194.1 million at March 31, 2017, compared with a net DTA of $227.8 million at March 31, 2016. The reduction in the DTA since the first quarter of 2016 is primarily the result of increased funding of FHN’s pension plan and a reduction in loss reserves.

As of March 31, 2017, FHN had deferred tax asset balances related to federal and state income tax carryforwards of $114.8 million and $19.4 million, respectively, which will expire at various dates.

As of March 31, 2017 and 2016, FHN established a valuation allowance of $40.4 million and $40.5 million, respectively, against its federal capital loss carryforwards. FHN’s DTA after valuation allowance was $290.2 million and $347.9 million as of March 31, 2017 and 2016, respectively. Based on current analysis, FHN believes that its ability to realize the remaining DTA is more likely than not. FHN monitors its DTA and the need for a valuation allowance on a quarterly basis. A significant adverse change in FHN’s taxable earnings outlook could result in the need for further valuation allowances. In the event FHN is able to determine that the deferred tax assets are realizable in the future in excess of their net recorded amount, FHN would make an adjustment to the valuation allowance, which would reduce the provision for income taxes.

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Tax reform, including the reduction of the corporate tax rate, will be on the legislative agenda for later this year. A rate reduction if enacted will have a net beneficial effect to FHN over the long-term, however, certain deductions may be eliminated or reduced as a part of tax reform which could reduce the beneficial effect of the rate reduction. Additionally, a rate reduction would result in the impairment of a portion of the deferred tax asset, as mentioned above, in the quarter that it is signed into law by the President. The actual impacts are subject to significant uncertainties including whether, and to what extent, rate reductions or broader tax reform can actually be executed and if executed, the timing.

STATEMENT OF CONDITION REVIEW

Total period-end assets were $29.6 billion on March 31, 2017, up 4 percent from $28.6 billion on December 31, 2016. Average assets increased to $28.8 billion in first quarter 2017 from $28.6 billion in fourth quarter 2016. The increase in average assets compared to fourth quarter 2016 was largely attributable to higher balances of interest bearing cash, somewhat offset by net decreases in the loan portfolios and trading securities. The increase in period-end assets relative to December 31, 2016 was also primarily driven by higher balances of interest bearing cash. Additionally, increases in trading securities and securities purchased under agreements to resell also contributed to the increase in assets on a period-end basis, but were somewhat offset by net decreases in loan balances.

Total period-end liabilities were $26.9 billion on March 31, 2017, a 4 percent increase from $25.9 billion on December 31, 2016. Average liabilities increased 1 percent to $26.1 billion first quarter 2017, from $25.9 billion in fourth quarter 2016. The increase in average liabilities was largely due to an increase in deposits, somewhat offset by lower Other short-term borrowings and a decline in trading liabilities relative to fourth quarter 2016.

EARNING ASSETS

Earning assets consist of loans, investment securities, other earning assets such as trading securities, interest-bearing cash, and loans HFS. Average earning assets increased to $26.6 billion in first quarter 2017 from $26.4 billion in fourth quarter 2016. A more detailed discussion of the major line items follows.

Loans

Period-end loans decreased 3 percent to $19.1 billion as of March 31, 2017 from $19.6 billion on December 31, 2016, but were up 9 percent from $17.6 billion as of March 31, 2016. Average loans for first quarter 2017 were $18.8 billion compared to $19.4 billion for fourth quarter 2016 and $17.3 billion for first quarter 2016. The decrease in average and period-end loan balances from fourth quarter 2016 was primarily due to a decrease in loans to mortgage companies, somewhat offset by increases in other commercial loan portfolios within the regional banking segment. To a much smaller extent, run-off of consumer loan portfolios within the non-strategic segment also contributed to the decline in period-end and average loans relative to fourth quarter 2016. The increase in average and period-end loan balances from first quarter 2016 was primarily driven by organic growth within the regional bank’s commercial portfolios and loans added through the purchase of franchise finance loans in third quarter 2016, partially offset by run-off of consumer loan portfolios within the non-strategic segment.

Table 5—Average Loans

	Quarter Ended March 31, 2017					Quarter Ended December 31, 2016
(Dollars in thousands)	Amount		Percent of total			Amount		Percent of total			Growth Rate
Commercial:
Commercial, financial, and industrial	$	11,381,258		60	%	$	11,987,561		62	%		(5	)%
Commercial real estate		2,176,355		12			2,089,314		11			4	%
Total commercial		13,557,613		72			14,076,875		73			(4	)%
Consumer:
Consumer real estate (a)		4,491,786		24			4,545,647		23			(1	)%
Permanent mortgage		415,916		2			429,914		2			(3	)%
Credit card, OTC and other		348,123		2			361,311		2			(4	)%
Total consumer		5,255,825		28			5,336,872		27			(2	)%
Total loans, net of unearned income	$	18,813,438		100	%	$	19,413,747		100	%		(3	)%

(a) Balance as of March 31, 2017 and December 31, 2016, includes $34.3 million and $37.2 million of restricted and secured real estate loans, respectively.

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C&I loans are the largest component of the commercial portfolio comprising 84 percent and 85 percent of average commercial loans in first quarter 2017 and fourth quarter 2016, respectively. C&I loans decreased 5 percent, or $.6 billion, from fourth quarter 2016 due to lower balances of loans to mortgage companies, partially offset by net loan growth within several of the regional bank’s portfolios including franchise finance, correspondent banking, private client, and energy. Commercial real estate loans increased 4 percent to $2.2 billion in first quarter 2017 because of growth in expansion markets, increased funding under existing commitments, and an increased focus on funded term debt products.

Average consumer loans declined 2 percent, or $.1 billion, from fourth quarter 2016 to $5.3 billion in first quarter 2017. The consumer real estate portfolio (home equity lines and installment loans) declined $53.9 million, to $4.5 billion, as the continued wind-down of portfolios within the non-strategic segment outpaced a $48.3 million increase in real estate installment loans from new originations within the regional banking segment. The permanent mortgage portfolio declined $14.0 million to $415.9 million in first quarter 2017 driven by run-off of legacy assets within the non-strategic segment offset by some growth in mortgage loans within regional banking, primarily related to FHN’s CRA initiatives. Credit Card and Other decreased $13.2 million to $348.1 million in first quarter 2017.

Investment Securities

FHN’s investment portfolio consists principally of debt securities including government agency issued mortgage-backed securities (“MBS”) and government agency issued collateralized mortgage obligations (“CMO”), substantially all of which are classified as available-for-sale (“AFS”). FHN utilizes the securities portfolio as a source of income, liquidity and collateral for repurchase agreements, for public funds, and as a tool for managing risk of interest rate movements. Investment securities were $4.0 billion on March 31, 2017 and December 31, 2016. Average investment securities were $3.9 billion in first quarter 2017 and $4.0 billion in fourth quarter 2016, representing 15 percent of average earning assets in first quarter 2017 and fourth quarter 2016.

Loans Held-for-Sale

Loans HFS consists of the mortgage warehouse (primarily repurchased government-guaranteed loans), small business, student, and home equity loans. On March 31, 2017 and December 31, 2016, loans HFS were $105.5 million and $111.2 million, respectively. The average balance of loans HFS decreased to $110.7 million in first quarter 2017 from $127.5 million in fourth quarter 2016, largely driven by a decrease in small business loans, and to a lesser extent a smaller mortgage warehouse.

Other Earning Assets

Other earning assets include trading securities, securities purchased under agreements to resell, federal funds sold (“FFS”), and interest-bearing deposits with the Fed and other financial institutions. Other earning assets averaged $3.8 billion in first quarter 2017, up from $2.8 billion in fourth quarter 2016. The increase in other earning assets was driven by higher levels of interest bearing cash largely driven by an inflow of customer deposits, but was somewhat offset by lower balances of trading securities and securities purchased under agreements to resell (“asset repos”). Fixed income’s trading inventory fluctuates daily based on customer demand. Asset repos are used in fixed income trading activity and generally fluctuate with the level of fixed income trading liabilities (short-positions) as securities collateral from asset repo transactions are used to fulfill trades. Other earning assets were $4.1 billion and $2.6 billion on March 31, 2017 and December 31, 2016, respectively. The increase in other earning assets on a period-end basis was primarily due to an increase in interest-bearing cash, and to a lesser extent an increase in trading inventory and asset repos.

Non-earning assets

Period-end non-earning assets were $2.3 billion on March 31, 2017 and December 31, 2016.

Deposits

Average deposits were $22.8 billion during first quarter 2017, up 2 percent from $22.3 billion during fourth quarter 2016 and 14 percent from $19.9 billion in first quarter 2016. The increase in average deposits from fourth quarter 2016 was primarily driven by a seasonal increase in public funds and an increase in priority savings, slightly offset by FHN’s decision to decrease deposit balances in a third party network deposit sweep program. The increase in average deposits from first quarter 2016 was largely the result of an increase in deposits in a third party network deposit sweep program and an increase in commercial customer deposits. The third party deposits program is an FDIC-insured deposit sweep program where financial institutions can receive unsecured deposits for the long-term (several years) and in larger-dollar increments and is used to support loan growth. Period-end deposits were $23.5 billion on March 31, 2017, up 4 percent and 16 percent, respectively, from $22.7 billion on December 31, 2016 and $20.3 billion on March 31, 2016, and were driven by the same factors that affected average balances.

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Short-Term Borrowings

Average short-term borrowings (federal funds purchased (“FFP”), securities sold under agreements to repurchase, trading liabilities, and other short-term borrowings) averaged $1.7 billion in first quarter 2017, down from $1.9 billion in fourth quarter 2016. The decrease between first quarter 2017 and fourth quarter 2016 was largely the result of declines in other short-term borrowings (primarily FHLB borrowings) and borrowings correlated with lower fixed income inventory levels in first quarter 2017 relative to the prior quarter. In prior periods FHN used FHLB borrowings as an additional source of wholesale funding to support loan growth; however, in first quarter 2017 deposit levels were sufficient to meet loan demand. These declines in other short-term borrowings and trading liabilities were somewhat offset by increases in securities sold under agreements to repurchase and FFP. Average FFP fluctuates depending on the amount of excess funding of FHN’s correspondent bank customers. Period-end short-term borrowings increased to $1.8 billion on March 31, 2017 from $1.5 billion on December 31, 2016, primarily driven by increases in trading liabilities and FFP.

Term Borrowings

Term borrowings include senior and subordinated borrowings with original maturities greater than one year. Term borrowings were $1.0 billion on March 31, 2017 and December 31, 2016. Average term borrowings decreased $24.5 million in first quarter 2017 to $1.0 billion.

Other Liabilities

Period-end other liabilities decreased to $.5 billion on March 31, 2017 from $.6 billion on December 31, 2016.

CAPITAL

Management’s objectives are to provide capital sufficient to cover the risks inherent in FHN’s businesses, to maintain excess capital to well-capitalized standards, and to assure ready access to the capital markets. Period-end equity increased $35.4 million from December 31, 2016 to $2.7 billion on March 31, 2017. The increase in equity from December 31, 2016 was primarily due to net income recognized in first quarter 2017, partially offset by common and preferred dividends paid. Average equity decreased $24.2 million to $2.7 billion in first quarter 2017 from fourth quarter 2016, as a decrease in accumulated other comprehensive income more than offset the impact of net income less dividends paid on equity recognized in first quarter on an average basis. The decline in average accumulated other comprehensive income was the result of unrealized losses recognized on the AFS securities portfolio, as well as an increase of net actuarial losses for pension and post retirement plans.

In January 2014, FHN’s board of directors approved a share repurchase program which enables FHN to repurchase its common stock in the open market or in privately negotiated transactions, subject to certain conditions. In July 2015 and April 2016 the board increased and extended that program. The current program authorizes total purchases of up to $350 million and expires on January 31, 2018. During first quarter 2017, FHN did not repurchase any common shares under the program. In first quarter 2016 FHN repurchased $75.0 million of common shares under the program. Total purchases under this program through March 31, 2017 were $160.3 million. FHN does not anticipate repurchasing any shares under this authorization through the closing of the Capital Bank acquisition.

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The following tables provide a reconciliation of Shareholders’ equity from the Consolidated Condensed Statements of Condition to Common Equity Tier 1, Tier 1 and Total Regulatory Capital as well as certain selected capital ratios:

Table 6—Regulatory Capital and Ratios

(Dollars in thousands)	March 31, 2017			December 31, 2016
Shareholders’ equity	$	2,445,029		$	2,409,653
FHN non-cumulative perpetual preferred		(95,624	)		(95,624	)
Common equity	$	2,349,405		$	2,314,029
Regulatory adjustments:
Disallowed goodwill and other intangibles		(167,813	)		(165,292	)
Net unrealized (gains)/losses on securities available for sale		18,795			17,232
Net unrealized (gains)/losses on pension and other postretirement plans		227,984			229,157
Net unrealized (gains)/losses on cash flow hedges		3,179			1,265
Disallowed deferred tax assets		(21,840	)		(18,027	)
Other deductions from common equity tier 1		(491	)		(377	)
Common equity tier 1	$	2,409,219		$	2,377,987
FHN non-cumulative perpetual preferred		95,624			95,624
Qualifying noncontrolling interest—FTBNA preferred stock		240,878			256,811
Other deductions from tier 1		(64,852	)		(58,551	)
Tier 1 capital	$	2,680,869		$	2,671,871
Tier 2 capital		245,423			254,139
Total regulatory capital	$	2,926,292		$	2,926,010
Risk-Weighted Assets
First Horizon National Corporation	$	23,623,224		$	23,914,158
First Tennessee Bank National Association		23,079,533			23,447,251
Average Assets for Leverage
First Horizon National Corporation		28,805,253			28,581,251
First Tennessee Bank National Association		27,922,937			27,710,158

	March 31, 2017					December 31, 2016
	Ratio			Amount		Ratio			Amount
Common Equity Tier 1
First Horizon National Corporation		10.20	%	$	2,409,219		9.94	%	$	2,377,987
First Tennessee Bank National Association		10.03			2,315,487		9.80			2,298,080
Tier 1
First Horizon National Corporation		11.35			2,680,869		11.17			2,671,871
First Tennessee Bank National Association		11.02			2,543,418		10.83			2,538,382
Total
First Horizon National Corporation		12.39			2,926,292		12.24			2,926,010
First Tennessee Bank National Association		11.95			2,757,163		11.78			2,762,271
Tier 1 Leverage
First Horizon National Corporation		9.31			2,680,869		9.35			2,671,871
First Tennessee Bank National Association		9.11			2,543,418		9.16			2,538,382

Banking regulators define minimum capital ratios for bank holding companies and their bank subsidiaries. Based on the capital rules and definitions prescribed by the banking regulators, should any depository institution’s capital ratios decline below predetermined levels, it would become subject to a series of increasingly restrictive regulatory actions. The system categorizes a depository institution’s capital position into one of five categories ranging from well-capitalized to critically under-capitalized. For an institution the size of FHN to qualify as well-capitalized, Common Equity Tier 1, Tier 1 Capital, Total Capital, and Leverage capital ratios must be at least 6.5 percent, 8 percent, 10 percent, and 5 percent, respectively. As of March 31, 2017, FHN and FTBNA had sufficient capital to qualify as a well-capitalized institution. Regulatory capital ratios generally increased in first quarter 2017 relative to fourth quarter 2016 due primarily to the impact of net income less dividends and decreases in risk-weighted assets as a result of a net decline in period end loans, partially offset by the phased-in implementation of the Basel III regulations. During 2017, capital ratios are expected to remain above well-capitalized standards.

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Pursuant to board authority, FHN may repurchase shares of its common stock from time to time and will evaluate the level of capital and take action designed to generate or use capital, as appropriate, for the interests of the shareholders, subject to legal and regulatory restrictions. FHN’s board has not authorized a preferred stock purchase program. The following tables provide information related to securities repurchased by FHN during first quarter 2017:

Table 7—Issuer Purchases of Common Stock

Compensation Plan-Related Repurchase Authority:

(Volume in thousands, except per share data)	Total number of shares purchased		Average price paid per share		Total number of shares purchased as part of publicly announced programs		Maximum number of shares that may yet be purchased under the programs
2017
January 1 to January 31		28	$	19.71		28		28,223
February 1 to February 28		16	$	19.89		16		25,697
March 1 to March 31		57	$	20.11		57		25,640
Total		101	$	19.96		101

Compensation Plan Programs:

• A consolidated compensation plan share purchase program was announced on August 6, 2004. This program consolidated into a single share purchase program all of the previously authorized compensation plan share programs as well as the renewal of the authorization to purchase shares for use in connection with two compensation plans for which the share purchase authority had expired. The total amount authorized under this consolidated compensation plan share purchase program, inclusive of a program amendment on April 24, 2006, is 29.6 million shares calculated before adjusting for stock dividends distributed through January 1, 2011. The authorization has been reduced for that portion which relates to compensation plans for which no options remain outstanding. The shares may be purchased over the option exercise period of the various compensation plans on or before December 31, 2023. On March 31, 2017, the maximum number of shares that may be purchased under the program was 25.6 million shares. Purchases may be made in the open market or through privately negotiated transactions and are subject to market conditions, accumulation of excess equity, prudent capital management, and legal and regulatory restrictions. Management currently does not anticipate purchasing a material number of shares under this authority during 2017.

Other Repurchase Authority:

(Dollar values and volume in thousands, except per share data)	Total number of shares purchased		Average price paid per share		Total number of shares purchased as part of publicly announced programs		Maximum approximate dollar value that may yet be purchased under the programs
2017
January 1 to January 31		—		N/A		—	$	189,690
February 1 to February 28		—		N/A		—	$	189,690
March 1 to March 31		—		N/A		—	$	189,690
Total		—		N/A		—

N/A—Not applicable

Other Programs:

• On January 22, 2014, FHN announced a $100 million share purchase authority with an expiration date of January 31, 2016. On July 21, 2015, FHN announced a $100 million increase in that authority along with an extension of the expiration date to January 31, 2017, and on April 26, 2016, FHN announced a $150 million increase and further extension to January 31, 2018. As of March 31, 2017, $160.3 million in purchases had been made under this authority at an average price per share of $12.86, $12.84 excluding commissions. Purchases may be made in the open market or through privately negotiated transactions and are subject to market conditions, accumulation of excess equity, prudent capital management, and legal and regulatory restrictions.

76

ASSET QUALITY

Loan Portfolio Composition

FHN groups its loans into portfolio segments based on internal classifications reflecting the manner in which the ALLL is established and how credit risk is measured, monitored, and reported. From time to time, and if conditions are such that certain subsegments are uniquely affected by economic or market conditions or are experiencing greater deterioration than other components of the loan portfolio, management may determine the ALLL at a more granular level. Commercial loans are composed of commercial, financial, and industrial (“C&I”) and commercial real estate (“CRE”). Consumer loans are composed of consumer real estate; permanent mortgage; and credit card and other. FHN has a concentration of residential real estate loans (25 percent of total loans), the majority of which is in the consumer real estate portfolio (23 percent of total loans). Industry concentrations are discussed under the heading C&I below.

Consolidated key asset quality metrics for each of these portfolios can be found in Table 15 – Asset Quality by Portfolio. Credit underwriting guidelines are outlined in Exhibit 13 to FHN’s Annual Report on Form 10-K for the year ended December 31, 2016, in the Loan Portfolio Composition discussion in the Asset Quality Section beginning on page 26 and continuing to page 46. FHN’s credit underwriting guidelines and loan product offerings as of March 31, 2017, are generally consistent with those reported and disclosed in the Company’s Form 10-K for the year ended December 31, 2016.

COMMERCIAL LOAN PORTFOLIOS

C&I

The C&I portfolio was $11.7 billion on March 31, 2017, and is comprised of loans used for general business purposes and primarily composed of relationship customers in Tennessee and other selected markets. Typical products include working capital lines of credit, term loan financing of owner-occupied real estate and fixed assets, and trade credit enhancement through letters of credit.

The following table provides the composition of the C&I portfolio by industry as of March 31, 2017, and December 31, 2016. For purposes of this disclosure, industries are determined based on the North American Industry Classification System (“NAICS”) industry codes used by Federal statistical agencies in classifying business establishments for the collection, analysis, and publication of statistical data related to the U.S. business economy.

Table 8—C&I Loan Portfolio by Industry

	March 31, 2017					December 31, 2016
(Dollars in thousands)	Amount		Percent			Amount		Percent
Industry:
Finance & insurance	$	2,575,736		22	%	$	2,573,713		21	%
Loans to mortgage companies		1,528,982		13			2,045,189		17
Accommodation & food service		965,690		8			987,973		8
Health care & social assistance		900,171		8			893,629		7
Wholesale trade		827,416		7			826,226		7
Manufacturing		813,459		7			762,947		6
Real estate rental & leasing (a)		811,214		7			769,457		6
Public administration		563,420		5			565,119		5
Transportation & warehousing		560,409		5			578,586		5
Other (education, arts, entertainment, etc) (b)		2,157,499		18			2,145,248		18
Total C&I loan portfolio	$	11,703,996		100	%	$	12,148,087		100	%

(a) Leasing, rental of real estate, equipment, and goods.

(b) Industries in this category each comprise less than 5 percent for 2017.

Industry Concentrations

Loan concentrations are considered to exist for a financial institution when there are loans to numerous borrowers engaged in similar activities that would cause them to be similarly impacted by economic or other conditions. 35 percent of FHN’s C&I portfolio (Finance and insurance plus Loans to mortgage companies) could be affected by items that uniquely impact the financial services industry. Except “Finance and Insurance” and “Loans to Mortgage Companies”, as discussed below, on March 31, 2017, FHN did not have any other concentrations of C&I loans in any single industry of 10 percent or more of total loans.

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Finance and Insurance

The finance and insurance component represents 22 percent of the C&I portfolio and includes TRUPS (i.e., long-term unsecured loans to bank and insurance-related businesses), loans to bank holding companies, and asset-based lending to consumer finance companies. As of March 31, 2017, asset-based lending to consumer finance companies represents approximately $1.0 billion of the finance and insurance component.

TRUPS lending was originally extended as a form of “bridge” financing to participants in the pooled trust preferred securitization program offered primarily to smaller banking (generally less than $15 billion in total assets) and insurance institutions through FHN’s fixed income business. Origination of TRUPS lending ceased in early 2008. Individual TRUPS are re-graded at least quarterly as part of FHN’s commercial loan review process. The terms of these loans generally include a scheduled 30 year balloon payoff and include an option to defer interest for up to 20 consecutive quarters. As of March 31, 2017, and December 31, 2016, one TRUP relationship was on interest deferral.

As of March 31, 2017, the unpaid principal balance (“UPB”) of trust preferred loans totaled $333.0 million ($206.7 million of bank TRUPS and $126.3 million of insurance TRUPS) with the UPB of other bank-related loans totaling $296.8 million. Inclusive of a valuation allowance on TRUPS of $25.5 million, total reserves (ALLL plus the valuation allowance) for TRUPS and other bank-related loans were $26.7 million or 4 percent of outstanding UPB.

Loans to Mortgage Companies

The balance of loans to mortgage companies was 13 percent of the C&I portfolio as of March 31, 2017, as compared to 17 percent of the C&I portfolio as of December 31, 2016, and 15 percent of the C&I portfolio as of March 31, 2016, and includes balances related to both home purchase and refinance activity. This portfolio class, which generally fluctuates with mortgage rates and seasonal factors, includes commercial lines of credit to qualified mortgage companies primarily for the temporary warehousing of eligible mortgage loans prior to the borrower’s sale of those mortgage loans to third party investors. Generally, lending to mortgage lenders increases when there is a decline in mortgage rates and decreases when rates rise.

C&I Asset Quality Trends

Overall, nearly all of the C&I portfolio trends remain strong in 2017, continuing in line with recent historical performance. The C&I ALLL increased $3.7 million from December 31, 2016, to $93.1 million as of March 31, 2017. The allowance as a percentage of period-end loans increased to .80 percent as of March 31, 2017, from .74 percent as of December 31, 2016. Nonperforming C&I loans decreased $2.1 million from December 31, 2016, to $30.7 million on March 31, 2017. The nonperforming loan (“NPL”) ratio decreased 1 basis point from December 31, 2016, to .26 percent of C&I loans as of March 31, 2017. The 30+ delinquency ratio increased to .17 percent as of March 31, 2017, from .08 percent as of December 31, 2016. The increase was primarily driven by a few credits, one of which has become current in early second quarter 2017. First quarter 2017 experienced net recoveries of $1.1 million compared to $1.6 million of net recoveries in fourth quarter 2016 and $5.7 million of net charge-offs in first quarter 2016. The following table shows C&I asset quality trends by segment.

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Table 9—C&I Asset Quality Trends by Segment

	2017
	Three months ended
(Dollars in thousands)	Regional Bank			Non-Strategic			Consolidated
Allowance for loan losses as of January 1	$	88,010		$	1,388		$	89,398
Charge-offs		(600	)		—			(600	)
Recoveries		1,670			6			1,676
Provision/(provision credit) for loan losses		2,545			88			2,633
Allowance for loan losses as of March 31	$	91,625			1,482			93,107
Net charge-offs % (qtr. annualized)		NM			NM			NM
Allowance / charge-offs		NM			NM			NM
	As of March 31
Period-end loans	$	11,284,258		$	419,738		$	11,703,996
Nonperforming loans		26,625			4,061			30,686
Troubled debt restructurings		31,392			—			31,392
30+ Delinq. % (a)		0.18	%		—	%		0.17	%
NPL %		0.24			0.97			0.26
Allowance / loans %		0.81			0.35			0.80
	2016
	Three months ended
(Dollars in thousands)	Regional Bank			Non-Strategic			Consolidated
Allowance for loan losses as of January 1	$	72,213		$	1,424		$	73,637
Charge-offs		(6,442	)		(83	)		(6,525	)
Recoveries		759			21			780
Provision/(provision credit) for loan losses		12,941			54			12,995
Allowance for loan losses as of March 31	$	79,471		$	1,416		$	80,887
Net charge-offs % (qtr. annualized)		0.24	%		0.06	%		0.23	%
Allowance / charge-offs		3.48	x		5.65	x		3.50	x
	As of December 31
Period-end loans	$	11,728,160		$	419,927		$	12,148,087
Nonperforming loans		28,619			4,117			32,736
Troubled debt restructurings		34,334			—			34,334
30+ Delinq. % (a)		0.08	%		—	%		0.08	%
NPL %		0.24			0.98			0.27
Allowance / loans %		0.75			0.33			0.74

NM—Not meaningful

Loans are expressed net of unearned income.

(a) 30+ Delinquency % includes all accounts delinquent more than one month and still accruing interest.

79

Commercial Real Estate

The CRE portfolio was $2.2 billion on March 31, 2017. The CRE portfolio includes both financings for commercial construction and nonconstruction loans. This portfolio is segregated between the income-producing CRE class which contains loans, draws on lines and letters of credit to commercial real estate developers for the construction and mini-permanent financing of income-producing real estate, and the residential CRE class. Subcategories of income CRE consist of multi-family (32 percent), retail (23 percent), office (16 percent), hospitality (13 percent), industrial (11 percent), and other (5 percent).

The residential CRE class includes loans to residential builders and developers for the purpose of constructing single-family homes, condominiums, and town homes. Active residential CRE lending has been minimal with nearly all new originations limited to tactical advances to facilitate workout strategies with existing clients and selected new transactions with “strategic” clients. FHN considers a “strategic” residential CRE borrower as a homebuilder within the regional banking footprint who remained profitable during the most recent down cycle.

CRE Asset Quality Trends

The CRE portfolio had continued stable performance as of March 31, 2017, with nonperforming loans down $.4 million from December 31, 2016, net recoveries in first quarter 2017, and minimal past due activity. The allowance decreased $3.0 million from December 31, 2016, to $30.9 million as of March 31, 2017. Allowance as a percentage of loans decreased 17 basis points from December 31, 2016, to 1.42 percent as of March 31, 2017. Nonperforming loans as a percentage of total CRE loans improved 2 basis points from year-end to .11 percent as of March 31, 2017. Accruing delinquencies as a percentage of period-end loans increased 2 basis points from year-end to .03 percent as of March 31, 2017. FHN recognized net recoveries of $.2 million in first quarter 2017 compared to net charge-offs of $.4 million in first quarter 2016. The following table shows commercial real estate asset quality trends by segment.

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Table 10—Commercial Real Estate Asset Quality Trends by Segment

	2017
	Three months ended
(Dollars in thousands)	Regional Bank			Non-Strategic			Consolidated
Allowance for loan losses as of January 1	$	33,852		$	—		$	33,852
Charge-offs		—			—			—
Recoveries		195			26			221
Provision/(provision credit) for loan losses		(3,159	)		(26	)		(3,185	)
Allowance for loan losses as of March 31	$	30,888			—			30,888
Net charge-offs % (qtr. annualized)		NM			NM			NM
Allowance / charge-offs		NM			NM			NM
	As of March 31
Period-end loans	$	2,173,311		$	—		$	2,173,311
Nonperforming loans		2,395			—			2,395
Troubled debt restructurings		3,096			—			3,096
30+ Delinq. % (a)		0.03	%		—	%		0.03	%
NPL %		0.11			—			0.11
Allowance / loans %		1.42			—			1.42
	2016
	Three months ended
(Dollars in thousands)	Regional Bank			Non-Strategic			Consolidated
Allowance for loan losses as of January 1	$	25,159			—		$	25,159
Charge-offs		(642	)		—			(642	)
Recoveries		194			28			222
Provision/(provision credit) for loan losses		915			(28	)		887
Allowance for loan losses as of March 31	$	25,626			—		$	25,626
Net charge-offs % (qtr. annualized)		0.10	%		NM			0.10	%
Allowance / charge-offs		14.23	x		NM			15.16	x
	As of December 31
Period-end loans	$	2,135,523		$	—		$	2,135,523
Nonperforming loans		2,776			—			2,776
Troubled debt restructurings		3,124			—			3,124
30+ Delinq. % (a)		0.01	%		—	%		0.01	%
NPL %		0.13			—			0.13
Allowance / loans %		1.59			—			1.59

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

NM—Not meaningful

Loans are expressed net of unearned income.

(a) 30+ Delinquency % includes all accounts delinquent more than one month and still accruing interest.

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CONSUMER LOAN PORTFOLIOS

Consumer Real Estate

The consumer real estate portfolio was $4.5 billion on March 31, 2017, and is primarily composed of home equity lines and installment loans including restricted balances (loans consolidated under ASC 810). The largest geographical concentrations of balances as of March 31, 2017, are in Tennessee (70 percent) and California (5 percent) with no other state representing more than 3 percent of the portfolio. As of March 31, 2017, approximately 71 percent of the consumer real estate portfolio was in a first lien position. At origination, weighted average FICO score of this portfolio was 750 and refreshed FICO scores averaged 748 as of March 31, 2017, as compared to 750 and 747, respectively, as of December 31, 2016. Generally, performance of this portfolio is affected by life events that affect borrowers’ finances, the level of unemployment, and home prices.

Home equity lines of credit (“HELOCs”) comprise $1.6 billion of the consumer real estate portfolio as of March 31, 2017. FHN’s HELOCs typically have a 5 or 10 year draw period followed by a 10 or 20 year repayment period, respectively. During the draw period, a borrower is able to draw on the line and is only required to make interest payments. The line is automatically frozen if a borrower becomes 45 days or more past due on payments. Once the draw period has concluded, the line is closed and the borrower is required to make both principal and interest payments monthly until the loan matures. The principal payment generally is fully amortizing, but payment amounts will adjust when variable rates reset to reflect changes in the prime rate.

As of March 31, 2017, and December 31, 2016, approximately 63 percent of FHN’s HELOCs are in the draw period. Based on when draw periods are scheduled to end per the line agreement, it is expected that $502.5 million, or 50 percent of HELOCs currently in the draw period, will have entered the repayment period during the next 60 months. Delinquencies and charge-off rates for HELOCs that have entered the repayment period are initially higher than HELOCs still in the draw period because of the increased minimum payment requirement; however, after some seasoning, performance of these loans usually begins to stabilize. The home equity lines of the consumer real estate portfolio are being monitored closely for those nearing the end of the draw period and borrowers are initially being contacted at least 24 months before the repayment period begins to remind the customer of the terms of their agreement and to inform them of options. The following table shows the HELOCs currently in the draw period and expected timing of conversion to the repayment period.

Table 11—HELOC Draw To Repayment Schedule

	March 31, 2017					December 31, 2016
(Dollars in thousands)	Repayment Amount		Percent			Repayment Amount		Percent
Months remaining in draw period:
0-12	$	200,551		20	%	$	212,665		20	%
13-24		102,435		10			127,662		12
25-36		63,096		6			73,331		7
37-48		63,953		7			68,768		6
49-60		72,505		7			68,792		7
>60		504,152		50			514,126		48
Total	$	1,006,692		100	%	$	1,065,344		100	%

Consumer Real Estate Asset Quality Trends

Overall, performance of the consumer real estate portfolio remained strong in first quarter 2017. Specifically, the regional bank’s asset quality metrics were relatively stable from a year ago, with the exception of NPLs as a percentage of loans which increased 3 basis points from year-end to .55 percent as of March 31, 2017. The non-strategic segment is a run-off portfolio and while the absolute dollars of delinquencies and nonaccruals as well as the 30+ accruing delinquencies ratio improved from year-end, nonperforming loans ratios deteriorated and may become more skewed as the portfolio shrinks and some of the stronger borrowers payoff or refinance elsewhere. The ALLL decreased slightly from December 31, 2016, to $49.7 million as of March 31, 2017, with the majority of the decline attributable to the non-strategic segment. The allowance as a percentage of loans remained at 1.11 percent as of March 31, 2017, compared to year-end. The balance of nonperforming loans declined $1.5 million to $81.3 million on March 31, 2017. Loans delinquent 30 or more days and still accruing declined from $42.1 million as of December 31, 2016, to $38.4 million as of March 31, 2017. The portfolio realized net recoveries of $1.8 million in first quarter 2017 compared to net recoveries of $2.2 million in fourth quarter 2016 and net charge-offs of $1.2 million in first quarter 2016. The following table shows consumer real estate asset quality trends by segment.

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Table 12—Consumer Real Estate Asset Quality Trends by Segment

	2017
	Three months ended
(Dollars in thousands)	Regional Bank			Non-Strategic			Consolidated
Allowance for loan losses as of January 1	$	19,010		$	31,347		$	50,357
Charge-offs		(732	)		(3,117	)		(3,849	)
Recoveries		903			4,773			5,676
Provision/(provision credit) for loan losses		23			(2,527	)		(2,504	)
Allowance for loan losses as of March 31	$	19,204			30,476			49,680
Net charge-offs % (qtr. annualized)		NM			NM			NM
Allowance / charge-offs		NM			NM			NM
	As of March 31
Period-end loans	$	3,655,301		$	801,510		$	4,456,811
Nonperforming loans		20,054			61,288			81,342
Troubled debt restructurings		45,790			100,682			146,472
30+ Delinq. % (a)		0.48	%		2.60	%		0.86	%
NPL %		0.55			7.65			1.83
Allowance / loans %		0.53			3.80			1.11
	2016
	Three months ended
(Dollars in thousands)	Regional Bank			Non-Strategic			Consolidated
Allowance for loan losses as of January 1	$	29,108		$	51,506		$	80,614
Charge-offs		(1,563	)		(5,363	)		(6,926	)
Recoveries		1,001			4,734			5,735
Provision/(provision credit) for loan losses		(1,944	)		(10,158	)		(12,102	)
Allowance for loan losses as of March 31	$	26,602		$	40,719		$	67,321
Net charge-offs % (qtr. annualized)		0.06	%		0.21	%		0.10	%
Allowance / charge-offs		11.78	x		16.09	x		14.06	x
	As of December 31
Period-end loans	$	3,642,894		$	880,858		$	4,523,752
Nonperforming loans		18,865			63,947			82,812
Troubled debt restructurings		47,478			105,982			153,460
30+ Delinq. % (a)		0.49	%		2.76	%		0.93	%
NPL %		0.52			7.26			1.83
Allowance / loans %		0.52			3.56			1.11

NM—Not meaningful

Loans are expressed net of unearned income.

(a) 30+ Delinquency % includes all accounts delinquent more than one month and still accruing interest.

83

Permanent Mortgage

The permanent mortgage portfolio was $.4 billion on March 31, 2017. This portfolio is primarily composed of jumbo mortgages and one-time-close (“OTC”) completed construction loans in the non-strategic segment that were originated through legacy businesses. The regional banking segment primarily includes recently acquired mortgage loans associated with FHN’s CRA initiatives. The corporate segment includes loans that were previously included in off-balance sheet proprietary securitization trusts. These loans were brought back into the loan portfolios at fair value through the execution of cleanup calls due to the relatively small balances left in the securitization and should continue to run-off. Approximately 20 percent of loan balances as of March 31, 2017, are in California, but the remainder of the portfolio is somewhat geographically diverse. Non-strategic and corporate segment run-off contributed to a majority of the $13.9 million net decrease in permanent mortgage period-end balances from December 31, 2016, to March 31, 2017.

The permanent mortgage portfolios within the non-strategic and corporate segments are run-off portfolios. As a result, asset quality metrics may become skewed as the portfolio shrinks and some of the stronger borrowers payoff or refinance elsewhere. The ALLL decreased $.4 million as of March 31, 2017, from $16.3 million as of December 31, 2016. TDR reserves (which are estimates of losses for the expected life of the loan) comprise 73 percent of the ALLL for the permanent mortgage portfolio as of March 31, 2017. Consolidated accruing delinquencies as a percentage of total loans increased 21 basis points from year-end to 2.57 percent as of March 31, 2017. Nonperforming loans increased $1.7 million to $28.8 million as of March 31, 2017. The portfolio realized net recoveries of $.4 million in first quarter 2017 compared to net recoveries of $.7 million in first quarter 2016. The following table shows permanent mortgage asset quality trends by segment.

84

Table 13—Permanent Mortgage Asset Quality Trends by Segment

	2017
	Three months ended
(Dollars in thousands)	Regional Bank			Corporate (a)			Non-Strategic			Consolidated
Allowance for loan losses as of January 1	$	1,215			N/A		$	15,074		$	16,289
Charge-offs		—			N/A			(483	)		(483	)
Recoveries		—			N/A			903			903
Provision/(provision credit) for loan losses		642			N/A			(1,458	)		(816	)
Allowance for loan losses as of March 31	$	1,857			N/A		$	14,036		$	15,893
Net charge-offs % (qtr. annualized)		—	%		N/A			NM			NM
Allowance / charge-offs		NM			N/A			NM			NM
	As of March 31
Period-end loans	$	84,197		$	67,490		$	257,548		$	409,235
Nonperforming loans		388			1,521			26,924			28,833
Troubled debt restructurings		956			4,277			83,510			88,743
30+ Delinq. % (b)		0.58	%		4.25	%		2.78	%		2.57	%
NPL %		0.46			2.25			10.45			7.05
Allowance / loans %		2.21			N/A			5.45			3.88
	2016
	Three months ended
(Dollars in thousands)	Regional Bank			Corporate (a)			Non-Strategic			Consolidated
Allowance for loan losses as of January 1	$	140			N/A		$	18,807		$	18,947
Charge-offs		—			N/A			(112	)		(112	)
Recoveries		—			N/A			779			779
Provision/(provision credit) for loan losses		243			N/A			(1,103	)		(860	)
Allowance for loan losses as of March 31	$	383			N/A		$	18,371		$	18,754
Net charge-offs % (qtr. annualized)		—	%		N/A			NM			NM
Allowance / charge-offs		NM			N/A			NM			NM
	As of December 31
Period-end loans	$	76,973		$	71,380		$	274,772		$	423,125
Nonperforming loans		393			1,186			25,602			27,181
Troubled debt restructurings		878			3,792			89,256			93,926
30+ Delinq. % (b)		0.72	%		4.37	%		2.29	%		2.36	%
NPL %		0.51			1.66			9.32			6.42
Allowance / loans %		1.58			N/A			5.49			3.85

NM—Not meaningful

Loans are expressed net of unearned income.

(a) An allowance has not been established for these loans as the valuation adjustment taken upon exercise of clean-up calls included expected losses.

(b) 30+ Delinquency % includes all accounts delinquent more than one month and still accruing interest.

Credit Card and Other

The credit card and other portfolio, which is primarily within the regional banking segment, was $.3 billion as of March 31, 2017, and primarily includes credit card receivables, other consumer-related credits, and automobile loans. The allowance increased to $12.4 million as of March 31, 2017, from $12.2 million as of December 31, 2016. Loans 30 days or more delinquent and accruing as a percentage of loans decreased 17 basis points from December 31, 2016, to 1.00 percent as of March 31, 2017. In first quarter 2017, FHN recognized $2.6 million of net charge-offs in the credit card and other portfolio, compared to $2.5 million in first quarter 2016. The following table shows credit card and other asset quality trends by segment.

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Table 14—Credit Card and Other Asset Quality Trends by Segment

	2017
	Three months ended
(Dollars in thousands)	Regional Bank			Non-Strategic			Consolidated
Allowance for loan losses as of January 1	$	11,995		$	177		$	12,172
Charge-offs		(3,442	)		(39	)		(3,481	)
Recoveries		794			43			837
Provision/(provision credit) for loan losses		3,047			(175	)		2,872
Allowance for loan losses as of March 31	$	12,394			6			12,400
Net charge-offs % (qtr. annualized)		3.15	%		NM			3.08	%
Allowance / charge-offs		1.15	x		NM			1.16	x
	As of March 31
Period-end loans	$	339,560		$	7,161		$	346,721
Nonperforming loans		—			136			136
Troubled debt restructurings		244			25			269
30+ Delinq. % (a)		0.98	%		1.84	%		1.00	%
NPL %		—			1.90			0.04
Allowance / loans %		3.65			0.08			3.58
	2016
	Three months ended
(Dollars in thousands)	Regional Bank			Non-Strategic			Consolidated
Allowance for loan losses as of January 1	$	10,966		$	919		$	11,885
Charge-offs		(3,354	)		(53	)		(3,407	)
Recoveries		781			107			888
Provision/(provision credit) for loan losses		2,612			(532	)		2,080
Allowance for loan losses as of March 31	$	11,005		$	441		$	11,446
Net charge-offs % (qtr. annualized)		3.01	%		NM			2.86	%
Allowance / charge-offs		1.06	x		NM			1.13	x
	As of December 31
Period-end loans	$	351,198		$	7,835		$	359,033
Nonperforming loans		—			142			142
Troubled debt restructurings		274			32			306
30+ Delinq. % (a)		1.16	%		1.73	%		1.17	%
NPL %		—			1.82			0.04
Allowance / loans %		3.42			2.26			3.39

NM—Not meaningful

Loans are expressed net of unearned income.

(a) 30+ Delinquency % includes all accounts delinquent more than one month and still accruing interest.

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The following table provides additional asset quality data by loan portfolio:

Table 15—Asset Quality by Portfolio

	March 31			December 31
	2017			2016
Key Portfolio Details
C&I
Period-end loans ($ millions)	$	11,704		$	12,148
30+ Delinq. % (a) (b)		0.17	%		0.08	%
NPL %		0.26			0.27
Charge-offs % (qtr. annualized)		NM			NM
Allowance / loans %		0.80	%		0.74	%
Allowance / charge-offs		NM			NM
Commercial Real Estate
Period-end loans ($ millions)	$	2,173		$	2,136
30+ Delinq. % (a)		0.03	%		0.01	%
NPL %		0.11			0.13
Charge-offs % (qtr. annualized)		NM			0.09
Allowance / loans %		1.42	%		1.59	%
Allowance / charge-offs		NM			17.56	x
Consumer Real Estate
Period-end loans ($ millions)	$	4,457		$	4,524
30+ Delinq. % (a)		0.86	%		0.93	%
NPL %		1.83			1.83
Charge-offs % (qtr. annualized)		NM			NM
Allowance / loans %		1.11	%		1.11	%
Allowance / charge-offs		NM			NM
Permanent Mortgage
Period-end loans ($ millions)	$	409		$	423
30+ Delinq. % (a)		2.57	%		2.36	%
NPL %		7.05			6.42
Charge-offs % (qtr. annualized)		NM			NM
Allowance / loans %		3.88	%		3.85	%
Allowance / charge-offs		NM			NM
Credit Card and Other
Period-end loans ($ millions)	$	347		$	359
30+ Delinq. % (a)		1.00	%		1.17	%
NPL %		0.04			0.04
Charge-offs % (qtr. annualized)		3.08			3.25
Allowance / loans %		3.58	%		3.39	%
Allowance / charge-offs		1.16	x		1.04	x

NM – Not meaningful

Loans are expressed net of unearned income.

(a) 30+ Delinquency % includes all accounts delinquent more than one month and still accruing interest.

(b) 1Q17 increase was primarily driven by a few credits within the C&I portfolio, one of which has become current in early second quarter 2017.

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Allowance for Loan Losses

Management’s policy is to maintain the ALLL at a level sufficient to absorb estimated probable incurred losses in the loan portfolio. The total allowance for loan losses decreased to $202.0 million on March 31, 2017, from $202.1 million on December 31, 2016. The ALLL as of March 31, 2017, reflects strong asset quality with the consumer real estate portfolio continuing to stabilize, historically low levels of net charge-offs, and declining non-strategic balances. The ratio of allowance for loan losses to total loans, net of unearned income, increased to 1.06 percent on March 31, 2017, from 1.03 percent on December 31, 2016.

The provision for loan losses is the charge to earnings necessary to maintain the ALLL at a sufficient level reflecting management’s estimate of probable incurred losses in the loan portfolio. The provision for loan losses was a credit of $1.0 million in first quarter 2017 compared to $3.0 million in first quarter 2016.

FHN expects asset quality trends to remain relatively stable for the near term if the slow growth of the economy continues. The C&I portfolio is expected to continue to show stable trends but short-term variability (both positive and negative) is possible primarily due to the size of the credits within this portfolio. The CRE portfolio metrics should be relatively consistent as FHN expects stable property values over the near term; however, oversupply of any CRE product type, changes in the lending environment, or economic uncertainty could result in decreased property values (which could happen abruptly). The remaining non-strategic consumer real estate and permanent mortgage portfolios should continue to steadily wind down. Asset quality metrics within non-strategic may become skewed as the portfolio continues to shrink. Continued stabilization in performance of the consumer real estate portfolio assumes an ongoing economic recovery as consumer delinquency and loss rates are correlated with unemployment trends and strength of the housing market.

Consolidated Net Charge-offs

Overall, net charge-offs continue to be at historical lows. First quarter 2017 experienced net recoveries of $.9 million compared to $9.2 million of net charge-offs in first quarter 2016.

The commercial portfolio experienced $1.3 million of net recoveries in first quarter 2017 compared to net charge-offs of $6.2 million in first quarter 2016. In addition, the consumer real estate portfolio experienced net recoveries of $1.8 million in first quarter 2017 compared to $1.2 million in net charge-offs during first quarter 2016. Permanent mortgage and credit card and other remained relatively flat compared to a year ago.

Nonperforming Assets

Nonperforming loans are loans placed on nonaccrual if it becomes evident that full collection of principal and interest is at risk, impairment has been recognized as a partial charge-off of principal balance due to insufficient collateral value and past due status, or on a case-by-case basis if FHN continues to receive payments, but there are other borrower-specific issues. Included in nonaccruals are loans in which FHN continues to receive payments, including residential real estate loans where the borrower has been discharged of personal obligation through bankruptcy and second liens, regardless of delinquency status, behind first liens that are 90 or more days past due, are bankruptcies, or are TDRs. These, along with foreclosed real estate, excluding foreclosed real estate from government insured mortgages, represent nonperforming assets (“NPAs”).

Total nonperforming assets (including NPLs HFS) decreased to $161.3 million on March 31, 2017, from $164.6 million on December 31, 2016. The nonperforming assets ratio (nonperforming assets excluding NPLs HFS to total period-end loans plus foreclosed real estate and other assets) remained flat at .80 percent as of March 31, 2017, compared to December 31, 2016. Portfolio nonperforming loans declined $2.3 million from December 31, 2016, to $143.4 million on March 31, 2017. The decline in nonperforming loans was primarily driven by a decrease within the commercial portfolio. This decrease was largely driven by payoffs within the C&I portfolio.

The ratio of the ALLL to NPLs in the loan portfolio was 1.41 times as of March 31, 2017, compared to 1.39 times as of December 31, 2016. Certain nonperforming loans in both the commercial and consumer portfolios are deemed collateral-dependent and are charged down to an estimate of collateral value less costs to sell. Because loss content has been recognized through a partial charge-off, typically reserves are not recorded.

Table 16 provides an activity rollforward of foreclosed real estate balances for March 31, 2017 and 2016. The balance of foreclosed real estate, exclusive of inventory from government insured mortgages, decreased to $10.3 million as of March 31, 2017, from $17.5 million as of March 31, 2016, as FHN has executed sales of existing foreclosed assets and continued efforts to avoid foreclosures by restructuring loans and working with borrowers. Additionally, property values have stabilized which also affect the balance of foreclosed real estate.

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Table 16—Rollforward of Foreclosed Real Estate

	Three Months Ended
	March 31
(Dollars in thousands)	2017			2016
Beginning balance	$	11,235		$	24,977
Valuation adjustments		(445	)		(536	)
New foreclosed property		1,105			732
Disposals:
Single transactions		(1,636	)		(7,713	)
Ending balance, March 31 (a)	$	10,259		$	17,460

(a) Excludes foreclosed real estate and receivables related to government insured mortgages of $6.5 million and $7.8 million as of March 31, 2017 and 2016, respectively.

The following table provides consolidated asset quality information for the three months ended March 31, 2017 and 2016, and as of March 31, 2017, and December 31, 2016:

Table 17—Asset Quality Information

	Three Months Ended March 31
(Dollars in thousands)	2017			2016
Allowance for loan losses:
Beginning balance on January 1	$	202,068		$	210,242
Provision/(provision credit) for loan losses		(1,000	)		3,000
Charge-offs		(8,413	)		(17,612	)
Recoveries		9,313			8,404
Ending balance on March 31	$	201,968		$	204,034
Reserve for remaining unfunded commitments		5,284			5,495
Total allowance for loan losses and reserve for unfunded commitments	$	207,252		$	209,529
Key ratios
Allowance / net charge-offs (a)		NM			5.51	x
Net charge-offs % (b)		NM			0.21	%
	As of March 31			As of December 31
Nonperforming Assets by Segment	2017			2016
Regional Banking:
Nonperforming loans (c)	$	49,462		$	50,653
Foreclosed real estate (d)		4,422			5,081
Total Regional Banking		53,884			55,734
Non-Strategic:
Nonperforming loans (c)		92,409			93,808
Nonperforming loans held-for-sale net of fair value adjustment (c)		7,633			7,741
Foreclosed real estate (d)		5,837			6,154
Total Non-Strategic		105,879			107,703
Corporate:
Nonperforming loans (c)		1,521			1,186
Total Corporate		1,521			1,186
Total nonperforming assets (c) (d)	$	161,284		$	164,623

NM – Not meaningful.

(a) Ratio is total allowance divided by annualized net charge-offs.

(b) Ratio is annualized net charge-offs divided by quarterly average loans, net of unearned income.

(c) Excludes loans that are 90 or more days past due and still accruing interest.

(d) Excludes foreclosed real estate from government-insured mortgages.

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Table 17—Asset Quality Information (Continued)

	As of March 31			As of December 31
	2017			2016
Loans and commitments:
Total period-end loans, net of unearned income	$	19,090,074		$	19,589,520
Potential problem assets (a)		311,859			290,354
Loans 30 to 89 days past due		51,095			42,570
Loans 90 days past due (b) (c)		22,411			23,385
Loans held-for-sale 30 to 89 days past due		3,414			6,462
Loans held-for-sale 30 to 89 days past due—guaranteed portion (d)		3,322			6,248
Loans held-for-sale 90 days past due (c)		14,637			14,868
Loans held-for-sale 90 days past due—guaranteed portion (c) (d)		14,565			14,657
Remaining unfunded commitments	$	9,430,508		$	8,744,649
Key ratios
Allowance / loans %		1.06	%		1.03	%
Allowance / NPL		1.41	x		1.39	x
NPA % (e)		0.80	%		0.80	%
NPL %		0.75	%		0.74	%

(a) Includes past due loans.

(b) Excludes loans classified as held-for-sale.

(c) Amounts are not included in nonperforming/nonaccrual loans.

(d) Guaranteed loans include FHA, VA, and GNMA loans repurchased through the GNMA buyout program.

(e) Ratio is non-performing assets related to the loan portfolio to total loans plus foreclosed real estate and other assets.

Past Due Loans and Potential Problem Assets

Past due loans are loans contractually past due as to interest or principal payments, but which have not yet been put on nonaccrual status. Loans in the portfolio that are 90 days or more past due and still accruing were $22.4 million on March 31, 2017, compared to $23.4 million on December 31, 2016. Loans 30 to 89 days past due increased to $51.1 million on March 31, 2017, from $42.6 million on December 31, 2016. The increase was largely driven by a few credits within the C&I portfolio, some of which have become current in early second quarter 2017.

Potential problem assets represent those assets where information about possible credit problems of borrowers has caused management to have serious doubts about the borrower’s ability to comply with present repayment terms and includes loans past due 90 days or more and still accruing. This definition is believed to be substantially consistent with the standards established by the OCC for loans classified as substandard. Potential problem assets in the loan portfolio were $311.9 million on March 31, 2017, $290.4 million on December 31, 2016, and $266.5 million on March 31, 2016. The linked-quarter and year-over-year increase in potential problem assets was due to an increase in classified commercial loans driven by a few credits. The current expectation of losses from potential problem assets has been included in management’s analysis for assessing the adequacy of the allowance for loan losses.

Troubled Debt Restructuring and Loan Modifications

As part of FHN’s ongoing risk management practices, FHN attempts to work with borrowers when appropriate to extend or modify loan terms to better align with their current ability to repay. Extensions and modifications to loans are made in accordance with internal policies and guidelines which conform to regulatory guidance. Each occurrence is unique to the borrower and is evaluated separately. In a situation where an economic concession has been granted to a borrower that is experiencing financial difficulty, FHN identifies and reports that loan as a Troubled Debt Restructuring (“TDR”). See Note 4 – Loans for further discussion regarding TDRs and loan modifications.

On March 31, 2017 and December 31, 2016, FHN had $270.0 million and $285.2 million portfolio loans classified as TDRs, respectively. For TDRs in the loan portfolio, FHN had loan loss reserves of $43.4 million and $44.9 million, or 16 percent of TDR balances, as of March 31, 2017 and December 31, 2016, respectively. Additionally, FHN had $67.2 million and $69.3 million of HFS loans classified as TDRs as of March 31, 2017 and December 31, 2016, respectively. Total held-to-maturity TDRs decreased by $15.2 million with the majority of the decline attributable to consumer real estate and permanent mortgage loans. Generally, the volume of new TDRs, particularly within the consumer real estate and permanent mortgage portfolios, has substantially declined.

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The following table provides a summary of TDRs for the periods ended March 31, 2017 and December 31, 2016:

Table 18—Troubled Debt Restructurings

	As of		As of
(Dollars in thousands)	March 31, 2017		December 31, 2016
Held-to-maturity:
Permanent mortgage:
Current	$	66,090	$	73,500
Delinquent		4,267		2,751
Non-accrual (a)		18,386		17,675
Total permanent mortgage		88,743		93,926
Consumer real estate:
Current		96,098		100,383
Delinquent		3,482		4,618
Non-accrual (b)		46,892		48,459
Total consumer real estate		146,472		153,460
Credit card and other:
Current		250		288
Delinquent		19		18
Non-accrual		—		—
Total credit card and other		269		306
Commercial loans:
Current		20,295		21,887
Delinquent		—		—
Non-accrual		14,193		15,571
Total commercial loans		34,488		37,458
Total held-to-maturity	$	269,972	$	285,150
Held-for-sale:
Current	$	47,801	$	46,625
Delinquent		13,548		16,436
Non-accrual		5,872		6,283
Total held-for-sale		67,221		69,344
Total troubled debt restructurings	$	337,193	$	354,494

(a) Balances as of March 31, 2017 and December 31, 2016, include $5.8 million and $5.3 million, respectively, of discharged bankruptcies.

(b) Balances as of March 31, 2017 and December 31, 2016, include $14.6 million and $15.3 million, respectively, of discharged bankruptcies.

RISK MANAGEMENT

Except as discussed below, there have been no significant changes to FHN’s risk management practices as described under “Risk Management” beginning on page 47 of Exhibit 13 to FHN’s Annual Report on Form 10-K for the year ended December 31, 2016.

MARKET RISK MANAGEMENT

Except as discussed below, there have been no significant changes to FHN’s market risk management practices as described under “Market Risk Management” beginning on page 48 of Exhibit 13 to FHN’s Annual Report on Form 10-K for the year ended December 31, 2016.

Value-at-Risk (“VaR”) and Stress Testing

VaR is a statistical risk measure used to estimate the potential loss in value from adverse market movements over an assumed fixed holding period within a stated confidence level. FHN employs a model to compute daily VaR measures for its trading securities inventory. FHN computes VaR using historical simulation with a 1-year lookback period at a 99 percent confidence level and 1-day and 10-day time horizons. Additionally, FHN computes a Stressed VaR (“SVaR”) measure. The SVaR computation uses the same model but with model inputs reflecting historical data from a continuous 12-month period that reflects a period of significant financial stress appropriate for our trading securities portfolio.

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A summary of FHN’s VaR and SVaR measures for 1-day and 10-day time horizons is as follows:

Table 19—VaR and SVaR Measures

	Three Months Ended March 31, 2017						As of March 31, 2017
(Dollars in thousands)	Mean		High		Low
1-day
VaR	$	1,057	$	1,714	$	779	$	1,620
SVaR		3,043		4,504		1,775		3,543
10-day
VaR		2,847		5,712		1,759		4,203
SVaR		9,400		13,285		4,916		13,285
	Three Months Ended March 31, 2016						As of March 31, 2016
(Dollars in thousands)	Mean		High		Low
1-day
VaR	$	725	$	1,411	$	393	$	699
SVaR		2,984		5,789		1,748		4,493
10-day
VaR		1,729		4,058		751		2,604
SVaR		9,752		15,252		3,263		12,632
	Year Ended December 31, 2016						As of December 31, 2016
(Dollars in thousands)	Mean		High		Low
1-day
VaR	$	821	$	1,745	$	393	$	932
SVaR		3,643		5,789		1,748		2,830
10-day
VaR		2,088		5,852		751		2,136
SVaR		11,671		18,483		3,263		6,443

FHN’s overall VaR measure includes both interest rate risk and credit spread risk. Separate measures of these component risks are as follows:

Table 20—Schedule of Risks Included in VaR

	As of March 31, 2017				As of March 31, 2016				As of December 31, 2016
(Dollars in Thousands)	1-day		10-day		1-day		10-day		1-day		10-day
Interest rate risk	$	1,730	$	4,990	$	755	$	854	$	917	$	1,771
Credit spread risk		1,156		1,753		556		1,842		537		1,391

INTEREST RATE RISK MANAGEMENT

Except as disclosed below, there have been no significant changes to FHN’s interest rate risk management practices as described under “Interest Rate Risk Management” beginning on page 50 of Exhibit 13 to FHN’s Annual Report on Form 10-K for the year ended December 31, 2016.

Net Interest Income Simulation Analysis

The information provided in this section, including the discussion regarding the outcomes of simulation analysis and rate shock analysis, is forward-looking. Actual results, if the assumed scenarios were to occur, could differ because of interest rate movements, the ability of management to execute its business plans, and other factors, including those presented in the Forward-Looking Statements section of this MD&A.

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Management uses a simulation model to measure interest rate risk and to formulate strategies to improve balance sheet positioning, earnings, or both, within FHN’s interest rate risk, liquidity, and capital guidelines. Interest rate exposure is measured by forecasting 12 months of NII under various interest rate scenarios and comparing the percentage change in NII for each scenario to a base case scenario where interest rates remain unchanged. Assumptions are made regarding future balance sheet composition, interest rate movements, and loan and deposit pricing. In addition, assumptions are made about the magnitude of asset prepayments and earlier than anticipated deposit withdrawals. The results of these scenarios help FHN develop strategies for managing exposure to interest rate risk. While management believes the assumptions used and scenarios selected in its simulations are reasonable, simulation modeling provides only an estimate, not a precise calculation, of exposure to any given change in interest rates.

Based on a static balance sheet as of March 31, 2017, net interest income exposure over the next 12 months assuming a rate shock of plus 25 basis points, 50 basis points, 100 basis points, and 200 basis points is estimated to have a favorable variance of 1.1 percent, 2.3 percent, 4.6 percent, and 8.6 percent, respectively of base net interest income. A steepening yield curve scenario where long-term rates increase by 50 basis points and short-term rates are static, results in a favorable variance in net interest income of 0.9 percent of base net interest income. A flattening yield curve scenario where long-term rates decrease by 50 basis points and short-term rates are static, results in an unfavorable variance in net interest income of 1.2 percent of base net interest income. A rate shock of minus 25 basis points results in an unfavorable variance in net interest income of 2.5 percent of base net interest income. These hypothetical scenarios are used to create a risk measurement framework, and do not necessarily represent management’s current view of future interest rates or market developments. Any scenarios that indicate a change in net interest income of 3 percent or more from base net interest income are reported to the Board quarterly.

CAPITAL MANAGEMENT AND ADEQUACY

There have been no significant changes to FHN’s capital management practices as described under “Capital Management and Adequacy” on page 51 of Exhibit 13 to FHN’s Annual Report on Form 10-K for the year ended December 31, 2016.

OPERATIONAL RISK MANAGEMENT

There have been no significant changes to FHN’s operational risk management practices as described under “Operational Risk Management” on page 52 of Exhibit 13 to FHN’s Annual Report on Form 10-K for the year ended December 31, 2016.

COMPLIANCE RISK MANAGEMENT

There have been no significant changes to FHN’s compliance risk management practices as described under “Compliance Risk Management” on page 52 of Exhibit 13 to FHN’s Annual Report on Form 10-K for the year ended December 31, 2016.

CREDIT RISK MANAGEMENT

There have been no significant changes to FHN’s credit risk management practices as described under “Credit Risk Management” beginning on page 52 of Exhibit 13 to FHN’s Annual Report on Form 10-K for the year ended December 31, 2016.

LIQUIDITY RISK MANAGEMENT

ALCO also focuses on liquidity management: the funding of assets with liabilities of appropriate duration, while mitigating the risk of unexpected cash needs. ALCO and the Board of Directors have adopted a Liquidity Policy. The objective of the Liquidity Policy is to ensure that FHN meets its cash and collateral obligations promptly, in a cost-effective manner and with the highest degree of reliability. The maintenance of adequate levels of asset and liability liquidity should provide FHN with the ability to meet both expected and unexpected cash and collateral needs. Key liquidity ratios, asset liquidity levels and the amount available from funding sources are reported to ALCO on a regular basis. FHN’s Liquidity Policy establishes liquidity limits that are deemed appropriate for FHN’s risk profile.

In accordance with the Liquidity Policy, ALCO manages FHN’s exposure to liquidity risk through a dynamic, real time forecasting methodology. Base liquidity forecasts are reviewed by ALCO and are updated as financial conditions dictate. In addition to the baseline liquidity reports, robust stress testing of assumptions and funds availability are periodically reviewed. FHN maintains a contingency funding plan that may be executed, should unexpected difficulties arise in accessing funding that affects FHN, the industry as a whole, or both. Subject to market conditions and compliance with applicable regulatory requirements from time to time, funds are available from a number of sources including the available-for-sale securities portfolio, dealer and commercial customer repurchase agreements, access to the overnight and term Federal Funds markets, incremental borrowing capacity at the FHLB ($3.1 billion was available at March 31, 2017), brokered deposits, loan sales, syndications, and access to the Federal Reserve Banks.

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Core deposits are a significant source of funding and have historically been a stable source of liquidity for banks. Generally, core deposits represent funding from a financial institutions’ customer base which provide inexpensive, predictable pricing. The Federal Deposit Insurance Corporation insures these deposits to the extent authorized by law. Generally, these limits are $250 thousand per account owner for interest bearing and non-interest bearing accounts. The ratio of total loans, excluding loans HFS and restricted real estate loans, to core deposits was 97 percent on March 31, 2017 compared to 105 percent on December 31, 2016.

FHN also may use unsecured short-term borrowings as a source of liquidity. Currently, the largest concentration of unsecured borrowings is federal funds purchased from bank correspondent customers. These funds are considered to be substantially more stable than funds purchased in the national broker markets for federal funds due to the long, historical, and reciprocal nature of banking services provided by FHN to these correspondent banks. The remainder of FHN’s wholesale short-term borrowings is securities sold under agreements to repurchase transactions accounted for as secured borrowings with Regional Banking’s business customers or Fixed Income’s broker dealer counterparties.

Both FHN and FTBNA may access the debt markets in order to provide funding through the issuance of senior or subordinated unsecured debt subject to market conditions and compliance with applicable regulatory requirements. In 2014, FTBNA issued $400 million of fixed rate senior notes due in December 2019. In October 2015, FHN issued $500 million of fixed rate senior notes due in December 2020.

Both FHN and FTBNA have the ability to generate liquidity by issuing preferred equity, and (for FHN) by issuing common equity, subject to market conditions and compliance with applicable regulatory requirements. In January 2013, FHN issued $100 million of Non-Cumulative Perpetual Preferred Stock, Series A. As of March 31, 2017, FTBNA and subsidiaries had outstanding preferred shares of $295.4 million, which are reflected as noncontrolling interest on the Consolidated Condensed Statements of Condition.

Parent company liquidity is primarily provided by cash flows stemming from dividends and interest payments collected from subsidiaries. These sources of cash represent the primary sources of funds to pay cash dividends to shareholders and principal and interest to debt holders of FHN. The amount paid to the parent company through FTBNA common dividends is managed as part of FHN’s overall cash management process, subject to applicable regulatory restrictions. Certain regulatory restrictions exist regarding the ability of FTBNA to transfer funds to FHN in the form of cash, common dividends, loans, or advances. At any given time, the pertinent portions of those regulatory restrictions allow FTBNA to declare preferred or common dividends without prior regulatory approval in an aggregate amount equal to FTBNA’s retained net income for the two most recent completed years plus the current year to date. For any period, FTBNA’s ‘retained net income’ generally is equal to FTBNA’s regulatory net income reduced by the preferred and common dividends declared by FTBNA. Excess dividends in either of the two most recent completed years may be offset with available retained net income in the two years immediately preceding it. Applying the applicable rules, FTBNA’s total amount available for dividends was negative $109.4 million as of March 31, 2017 compared to negative $132.5 million as of December 31, 2016. Consequently, FTBNA could not pay common dividends to its sole common stockholder, FHN, or to its preferred shareholders without prior regulatory approval. FTBNA applied for and received approval from the OCC to declare and pay common dividends to FHN in first and second quarter 2017 in the amounts of $40 million and $50 million, respectively, and in the amount of $250 million in 2016. FTBNA declared and paid preferred dividends in first quarter 2017 and each quarter of 2016, with OCC approval as necessary. Additionally, FTBNA declared preferred dividends in second quarter 2017, with OCC approval.

Payment of a dividend to shareholders of FHN is dependent on several factors which are considered by the Board. These factors include FHN’s current and prospective capital, liquidity, and other needs, applicable regulatory restrictions, and also availability of funds to FHN through a dividend from FTBNA. Additionally, the Federal Reserve and the OCC generally require insured banks and bank holding companies to pay cash dividends only out of current operating earnings. Consequently, the decision of whether FHN will pay future dividends and the amount of dividends will be affected by current operating results. FHN paid a cash dividend of $.09 per common share on April 3, 2017, and in April 2017 the Board approved a $.09 per common share cash dividend payable on July 3, 2017, to shareholders of record on June 9, 2017. FHN paid a cash dividend of $1,550.00 per preferred share on April 10, 2017, and in April 2017 the Board approved a $1,550.00 per preferred share cash dividend payable on July 10, 2017, to shareholders of record on June 23, 2017.

CASH FLOWS

The Consolidated Condensed Statements of Cash Flows provide information on cash flows from operating, investing, and financing activities for the three months ended March 31, 2017 and 2016. The level of cash and cash equivalents increased $198.2 million during first quarter 2017 compared to an increase of $51.1 million in first quarter 2016, as cash provided by financing activities more than offset cash used by investing and operating activities during both periods.

Net cash provided by financing activities was $823.7 million in first quarter 2017, largely driven by an increase in deposits as a result of a seasonal increase in public funds and an increase in priority savings. Net cash used by investing activities was $554.3 million in first quarter 2017. A $1.0 billion increase in interest bearing cash negatively impacted cash flows in first quarter 2017, but was somewhat offset by a $.5 billion decrease in loans, primarily due to a seasonal decrease in loans to mortgage companies. Net cash used

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by operating activities was $71.2 million in first quarter 2017. Operating cash decreased in first quarter 2017 primarily due to net cash outflows of $94.9 million related to fixed income trading activities and $58.1 million related to operating assets and liabilities, but were somewhat offset by favorably driven cash-related net income items.

Net cash provided by financing activities was $430.4 million in first quarter 2016. Financing cash inflows in 2016 were positively affected by a $360.7 million increase in deposits and a $170.2 million increase in short-term borrowings, but were somewhat offset by share repurchases during the quarter. Net cash used by investing activities was $267.6 million in first quarter 2016. In 2016, a $349.1 million increase in interest-bearing cash and a $22.6 million net decrease in cash associated with the AFS securities portfolio negatively affected cash provided by investing activities, but was partially mitigated by a $102.7 million decrease in loans. Net cash used by operating activities was $111.7 million in first quarter 2016. Operating cash decreased in first quarter 2016 primarily driven by net cash outflows of $191.8 million related to net fixed income trading activities.

REPURCHASE OBLIGATIONS, OFF-BALANCE SHEET ARRANGEMENTS, AND OTHER CONTRACTUAL OBLIGATIONS

Obligations from Legacy Mortgage Businesses

Overview

Prior to September 2008 FHN originated loans through its legacy mortgage business, primarily first lien home loans, with the intention of selling them. Sales typically were effected either as non-recourse whole loan sales or through non-recourse proprietary securitizations. Conventional conforming single-family residential mortgage loans were sold predominately to two GSEs: Fannie Mae and Freddie Mac. Also, federally insured or guaranteed whole loans were pooled, and payments to investors were guaranteed through Ginnie Mae. Many mortgage loan originations, especially nonconforming mortgage loans, were sold to investors, or certificate-holders, predominantly through FH proprietary securitizations but also, to a lesser extent, through other whole loans sold to private non-Agency purchasers. FHN used only one trustee for all of its FH proprietary securitizations. FHN also originated mortgage loans eligible for FHA insurance or VA guaranty. In addition, FHN originated and sold HELOCs and second lien mortgages through other whole loans sold to private purchasers and, to a lesser extent, through FH proprietary securitizations. Currently, only one FH securitization of HELOCs remains outstanding.

For non-recourse loan sales, FHN has exposure for repurchase of loans, make-whole damages, or other related damages, arising from claims that FHN breached its representations and warranties made at closing to the purchasers, including GSEs, other whole loan purchasers, and the trustee of FH proprietary securitizations.

During the time these legacy activities were conducted, FHN frequently sold mortgage loans “with servicing retained.” As a result, FHN accumulated substantial amounts of MSR on its balance sheet, as well as contractual servicing obligations and related deposits and receivables. FHN conducted a significant servicing business under its First Horizon Home Loans brand.

MI was required by GSE rules for certain of the loans sold to GSEs and was also provided for certain of the loans that were securitized. MI generally was provided for first lien loans sold or securitized having an LTV ratio at origination of greater than 80 percent.

In 2007, market conditions deteriorated to the point where mortgage-backed securitizations could no longer be sold economically; FHN’s last securitization occurred that year. FHN continued selling mortgage loans to GSEs until August 31, 2008, when FHN sold its national mortgage origination and servicing platforms along with a portion of its servicing assets and obligations. FHN then contracted to have its remaining servicing obligations sub-serviced. Since the platform sale FHN has sold substantially all remaining servicing assets and obligations in several transactions, concluding in 2014.

Certain mortgage-related terms used in this section are defined in “Mortgage-Related Glossary” below.

Repurchase and Make-Whole Obligations

Starting in 2009 FHN received a high number of claims either to repurchase loans from the purchaser or to pay the purchaser to “make them whole” for economic losses incurred. These claims have been driven primarily by loan delinquencies. In repurchase or make-whole claims a loan purchaser typically asserts that specified loans violated representations and warranties FHN made when the loans were sold. A significant majority of claims received overall have come from GSEs, and the remainder are from purchasers of other whole loan sales. FHN has not received a loan repurchase or make-whole claim from the FH proprietary securitization trustee.

Generally, FHN reviews each claim and MI cancellation notice individually. FHN’s responses include appeal, provide additional information, deny the claim (rescission), repurchase the loan or remit a make-whole payment, or reflect cancellation of MI.

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After several years resolving repurchase and make-whole claims with each GSE on a loan-by-loan basis, in 2013 and 2014 FHN entered into DRAs with the GSEs, resolving a large fraction of potential claims. Starting in 2014 the overall number of such claims diminished substantially, primarily as a result of the DRAs. Each DRA resolved obligations associated with loans originated from 2000 to 2008, but certain obligations and loans were excluded. Under each DRA, FHN remains responsible for repurchase obligations related to certain excluded defects (such as title defects and violations of the GSE’s Charter Act) and FHN continues to have loan repurchase or monetary compensation obligations under the DRAs related to private mortgage insurance rescissions, cancellations, and denials (with certain exceptions). FHN also has exposure related to loans where there has been a prior bulk sale of servicing, as well as certain other whole-loan sales. With respect to loans where there has been a prior bulk sale of servicing, FHN is not responsible for MI cancellations and denials to the extent attributable to the acts of the current servicer.

While large portions of repurchase claims from the GSEs were settled with the DRAs, comprehensive settlement of repurchase, make-whole, and indemnity claims with non-Agency claimants is not practical. Such claims that are not resolved by the parties can, and sometimes have, become litigation.

FH Proprietary Securitization Actions

FHN has potential financial exposure from FH proprietary securitizations outside of the repurchase/make-whole process. Several investors in certificates sued FHN and others starting in 2009, and several underwriters or other counterparties have demanded that FHN indemnify and defend them in securitization lawsuits. The pending suits generally assert that disclosures made to investors in the offering and sale of certificates were legally deficient. A number of those matters have settled or otherwise been resolved. See Note 10 – Contingencies and Other Disclosures for a discussion of certain actions pending against FHN in relation to FH proprietary securitizations.

Servicing Obligations

FHN’s national servicing business was sold as part of the platform sale in 2008. A significant amount of MSR was sold at that time, and a significant amount was retained. The related servicing activities, including foreclosure and loss mitigation practices, not sold in 2008 were outsourced through a three-year subservicing arrangement (the “2008 subservicing agreement”) with the platform buyer (the “2008 subservicer”). The 2008 subservicing agreement expired in 2011 when FHN entered into a replacement agreement with a new subservicer (the “2011 subservicer”). In fourth quarter 2013, FHN contracted to sell a substantial majority of its remaining servicing obligations and servicing assets (including advances) to the 2011 subservicer. The servicing was transferred to the buyer in stages, and was substantially completed in first quarter 2014. The servicing still retained by FHN continues to be subserviced.

As servicer, FHN had contractual obligations to the owners of the loans (primarily GSEs) and securitization trustees to handle billing, custodial, and other tasks related to each loan. Each subservicer undertook to perform those obligations on FHN’s behalf during the applicable subservicing period, although FHN legally remained the servicer of record for those loans that were subserviced.

The 2008 subservicer has been subject to a consent decree, and entered into a settlement agreement, with regulators related to alleged deficiencies in servicing and foreclosure practices. The 2008 subservicer has made demands of FHN, under the 2008 subservicing agreement, to pay certain resulting costs and damages totaling $43.5 million. FHN disagrees with those demands and has made no payments. This disagreement has the potential to result in litigation and, in any such future litigation, the claim against FHN may be substantial.

A certificate holder has contacted FHN, claiming that it has been damaged from alleged deficiencies in servicing loans held in certain FH proprietary securitization trusts. The holder has sued the FH securitization trustee on related grounds, but has not yet sued FHN. FHN cannot predict how this matter will proceed nor can FHN predict whether this matter ultimately will be material to FHN.

Origination Data

From 2005 through 2008, FHN originated and sold $69.5 billion of mortgage loans to the Agencies. This includes $57.6 billion of loans sold to GSEs and $11.9 billion of loans guaranteed by Ginnie Mae. Although FHN conducted these businesses before 2005, GSE loans originated in 2005 through 2008 account for a substantial majority of all repurchase requests/make-whole claims received since the 2008 platform sale.

From 2005 through 2007, $26.7 billion of mortgage loans were included in FH proprietary securitizations. The last FH securitization occurred in 2007. On March 31, 2017, the remaining UPB of loans held in FH proprietary securitizations was $3.7 billion, comprised of $2.7 billion of Alt-A loans and $1.0 billion of Jumbo loans.

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Mortgage-Related Glossary

Agencies	the two GSEs and Ginnie Mae	HELOC	home equity line of credit
certificates	securities sold to investors representing interests in mortgage loan securitizations	HUD	Dept. of Housing and Urban Development
DOJ	U.S. Department of Justice	LTV	loan-to-value, a ratio of the loan amount divided by the home value
DRA	definitive resolution agreement with a GSE	MI	private mortgage insurance, insuring against borrower payment default
Fannie Mae, Fannie, FNMA	Federal National Mortgage Association	MSR	mortgage servicing rights
FH proprietary securitization	securitization of mortgages sponsored by FHN under its First Horizon brand	nonconforming loans	loans that did not conform to Agency program requirements
FHA	Federal Housing Administration	other whole loans sold	mortgage loans sold to private, non-Agency purchasers
Freddie Mac, Freddie, FHLMC	Federal Home Loan Mortgage Corporation	2008 platform sale, platform sale, 2008 sale	FHN’s sale of its national mortgage origination and servicing platforms in 2008
Ginnie Mae, Ginnie, GNMA	Government National Mortgage Association	pipeline or active pipeline	pipeline of mortgage repurchase, make-whole, & certain related claims against FHN
GSEs	Fannie Mae and Freddie Mac	VA	Veterans Administration

Active Pipeline

FHN accumulates the amount of repurchase requests, make-whole claims, and certain other related claims into the “active pipeline.” The active pipeline includes the amount of claims for loan repurchase, make-whole payments, loans as to which MI has been canceled, and information requests from purchasers of loans originated and sold through FHN’s legacy mortgage banking business. MI was required for certain of the loans sold to GSEs or that were securitized. Although unresolved MI cancellation notices are not formal repurchase requests, FHN includes those loans in the active pipeline. Additionally, FHN is responsible for covering losses for purchasers to the extent there is a shortfall in MI insurance coverage (MI curtailment). Generally, the amount of a loan subject to a repurchase/make-whole claim, or with open MI issues, remains in the active pipeline throughout the resolution process with a claimant. During the last several years the active pipeline has steadily decreased, due in part to settlements and other resolutions, but also due to significant reductions in inflows. On March 31, 2017, the active pipeline was $49.4 million, down from $51.7 million on December 31, 2016.

The following table provides the number and unpaid principal amount of loans in the active repurchase request pipeline, including related unresolved MI notices and other requests as of March 31, 2017 and December 31, 2016:

Table 21—Active Pipeline

	March 31, 2017				December 31, 2016
(Dollars in thousands)	Number		Amount		Number		Amount
Repurchase/make whole requests:
Agencies		18	$	3,466		23	$	4,196
Non-Agency whole loan-related		126		19,252		126		19,214
MI		135		21,637		147		23,171
Other requests (a)		37		5,045		37		5,122
Total		316	$	49,400		333	$	51,703

(a) Other requests typically include requests for additional information from both GSE and non-GSE purchasers.

On March 31, 2017, Agencies accounted for approximately 57 percent of the total active pipeline, inclusive of MI cancellation notices, MI curtailments, and all other claims. MI curtailment requests, the largest portion of the active pipeline, are intended only to cover the shortfall in MI insurance proceeds. As a result FHN’s loss from MI curtailments as a percentage of UPB generally is significantly lower than that of a repurchase or make-whole claim. At March 31, 2017, the active pipeline contained no loan repurchase or make-whole requests from the FH proprietary securitization trustee related to first lien mortgage loans based on claims related to breaches of representations and warranties related to origination.

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Repurchase Accrual Methodology

Over the past several years FHN’s approach for determining the adequacy of the repurchase and foreclosure reserve has evolved, sometimes substantially, based on changes in information available. Repurchase/make-whole rates vary based on purchaser, vintage, and claim type. For those loans repurchased or covered by a make-whole payment, cumulative average loss severities range between 50 and 60 percent of the UPB.

Repurchase Accrual Approach

Repurchase/Make-whole and Damages obligations and estimates for probable incurred losses associated with loan populations excluded from the DRAs are significant components of FHN’s remaining repurchase liability as of March 31, 2017. Other components of that liability primarily relate to other whole loans sold, MI rescissions, and loans included in bulk servicing sales effected prior to the DRAs.

In determining the loss content of GSE loans subject to repurchase requests excluded from the DRAs (primarily loans included in bulk sales), FHN applies a vintage level estimate of loss to all loans sold to the GSEs that were not included in the settlements and which have not had a prior repurchase resolution. First, pre-payment, default, and claim rate estimates are applied by vintage to estimate the aggregate claims expected but not yet resolved. Historical loss factors for each sale vintage and repurchase rates are then applied to estimate total loss content. Loss content related to other whole loan sales is estimated by applying the historical average repurchase and loss severity rates to the current UPB in the active pipeline to calculate estimated losses attributable to the current pipeline. FHN then uses an internal model to calculate loss content by applying historical average repurchase and loss severity rates to historical average inflows. For purposes of estimating loss content, FHN also considers MI cancellations. When assessing loss content related to loans where MI has been cancelled, FHN applies historical loss factors (including repurchase rates and loss severity ratios) to the total unresolved MI cancellations in the active pipeline, as well as applying these factors to historical average inflows to estimate loss content. Additionally, FHN identifies estimated losses related to MI curtailment requests. Management also evaluates the nature of claims from purchasers and/or servicers of loans sold to determine if qualitative adjustments are appropriate.

Repurchase and Foreclosure Liability

The repurchase and foreclosure liability is comprised of reserves to cover estimated loss content in the active pipeline, as well as estimated loss content related to certain known claims not currently included in the active pipeline. FHN compares the estimated probable incurred losses determined under the applicable loss estimation approaches described above for the respective periods with current reserve levels. Changes in the estimated required liability levels are recorded as necessary through the repurchase and foreclosure provision.

The following table provides a rollforward of the legacy mortgage repurchase liability for the three months ended March 31, 2017 and 2016:

Table 22—Reserves for Repurchase and Foreclosure Losses

	Three Months Ended March 31
(Dollars in thousands)	2017			2016
Legacy Mortgage
Beginning balance	$	65,309		$	114,947
Provision/(provision credit) for repurchase and foreclosure losses		(238	)		—
Net realized losses		(294	)		(627	)
Balance on March 31	$	64,777		$	114,320

Other FHN Mortgage Exposures

FHN’s FHA and VA program lending was substantial prior to the 2008 platform sale, and has continued at a much lower level since then. As lender, FHN made certain representations and warranties as to the compliance of the loans with program requirements. Over the past several years, most recently in first quarter 2015, FHN occasionally has recognized significant losses associated with settling claims and potential claims by government agencies, and by private parties asserting claims on behalf of agencies, related to these origination activities. At March 31, 2017, FHN had not accrued a liability for any matter related to these government lending programs, and no pending or known threatened matter related to these programs represented a material loss contingency described in Note 10 – Contingencies and Other Disclosures.

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At March 31, 2017, FHN had not accrued a liability for exposure for repurchase of first-lien loans related to FH proprietary securitizations arising from claims from the trustee that FHN breached its representations and warranties in FH proprietary securitizations at closing. FHN’s trustee is a defendant in lawsuits in which the plaintiffs have asserted that the trustee has duties to review loans and otherwise to act against loan originators and loan servicers, including FHN, outside of the duties specified in the applicable trust documents; FHN is not a defendant and is not able to assess what, if any, exposure FHN may have as a result of them.

FHN is defending, directly or as indemnitor, certain pending lawsuits brought by purchasers of certificates in FH proprietary securitizations or their assignees. FHN believes a new lawsuit based on federal securities claims that offering disclosures were deficient cannot be brought at this time due to the running of applicable limitation periods, but other investor claims, based on other legal theories, might still be possible. Due to the sales of MSR from 2008 through 2014, FHN has limited visibility into current loan information such as principal payoffs, refinance activity, delinquency trends, and loan modification activity.

Many non-GSE purchasers of whole loans from FHN included those loans in their own securitizations. Regarding such other whole loans sold, FHN made representations and warranties concerning the loans and provided indemnity covenants to the purchaser/securitizer. Typically the purchaser/securitizer assigned key contractual rights against FHN to the securitization trustee. As mentioned above, repurchase, make-whole, indemnity, and other monetary claims related to specific loans are included in the active pipeline and repurchase reserve. In addition, currently the following categories of actions are pending which involve FHN and other whole loans sold: (i) FHN has received indemnification requests from purchasers of loans or their assignees in cases where FHN is not a defendant; (ii) FHN has received subpoenas seeking loan reviews in cases where FHN is not a defendant; (iii) FHN has received repurchase demands from purchasers or their assignees; and (iv) FHN is a defendant in legal actions involving FHN-originated other whole loans sold. At March 31, 2017, FHN’s repurchase and foreclosure liability included certain known exposures from other whole loans sold.

Certain government entities have subpoenaed information from FHN and others. These entities include the FDIC (on behalf of certain failed banks) and the FHLBs of San Francisco, Atlanta, and Seattle, among others. These entities purport to act on behalf of several purchasers of FH proprietary securitizations, and of non-FH securitizations which included other whole loans sold. Collectively, the subpoenas seek information concerning: a number of FH proprietary securitizations and/or underlying loan originations; and originations of certain other whole loans sold which, in many cases, were included by the purchaser in its own securitizations. Some subpoenas fail to identify the specific investments made or loans at issue. Moreover, FHN has limited information regarding at least some of the loans under review. Unless and until a review (if related to specific loans) becomes an identifiable repurchase claim, the associated loans are not considered part of the active pipeline.

MARKET UNCERTAINTIES AND PROSPECTIVE TRENDS

FHN’s future results could be affected both positively and negatively by several known trends. Key among those are FHN’s strategic initiatives, changes in the U.S. economy and outlook, government actions affecting interest rates, and potential changes in federal policies. In addition, legacy matters in the non-strategic segment are likely to continue to impact FHN’s quarterly results in ways which are both difficult to predict and unrelated to current operations.

FHN has prioritized expense discipline to include reducing or controlling certain expenses and investing in revenue-producing activities and critical infrastructure. FHN has committed to organic growth through key hires, targeted incentives, and other traditional means. FHN has actively pursued acquisition opportunities while maintaining a disciplined approach to valuations; to date all which closed have been moderate in size. FHN has been and remains amenable to a much more impactful acquisition, including a merger of equals, if an appropriate opportunity can be found.

Performance by FHN, and the entire U.S. financial services industry, is affected considerably by the overall health of the U.S. economy. The most recent recession ended in 2009. Growth during the economic expansion since 2009 has been muted, compared to earlier recoveries, and somewhat inconsistent from one quarter to the next. Though the economic expansion is 8 years old, currently the U.S. economy does not appear to be weakening or falling back into recession. A continuation of the current expansion would support, rather than hinder, future loan and other financial activity growth by our customers.

The Federal Reserve has raised short term interest rates modestly in the past two years, and has signaled a willingness in 2017 to accelerate a transition to a more conventional interest rate environment, depending mainly upon economic data and trends. If the Fed in fact raises rates somewhat more quickly than in the past two years (because economic data shows continued or accelerated growth, for example), FHN’s net interest margin in the future is likely to continue 2016’s improving trend. A steep yield curve should also bolster activity within FHN’s Fixed Income business. However, if the data shows a risk of lower growth or recession, interest rates may stall or even fall, which would adversely impact FHN’s net interest margin. Falling and/or volatile interest rates, however, should enhance activity within FHN’s fixed income business. Also, if Fed actions cause long-term rates to rise slower than short-term rates, then the yield curve would flatten which would adversely impact FHN’s net interest margin.

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FHN cannot predict the timing, resolution and effects of potential new legislation. The legislative actions which currently seem the most likely to be impactful to FHN include corporate tax reform, general regulatory reform, and financial regulatory reform, all of which can affect the overall economy and FHN customers.

Lastly, while FHN has made significant progress in resolving matters from the legacy mortgage business, several matters remain unresolved. The timing or financial impact of resolution of these matters, most of which are in litigation, cannot be predicted with accuracy. Accordingly, the non-strategic segment is expected to occasionally and unexpectedly impact FHN’s overall quarterly results negatively or positively with reserve accruals or releases. Also, although new legacy matters of significance arise at a much slower pace than in years past and some formerly common legal claims no longer can be made due to the passage of time, potential for new legacy matters remains.

Foreclosure Practices

All lenders are affected by the heightened regulation of servicing, foreclosure, and loss mitigation practices, at both federal and state levels, implemented since 2009. In addition, FHN retains exposure for potential deficiencies in servicing related to its legacy servicing business and subservicing arrangements. Further details regarding these legacy matters are provided in “Obligations from Legacy Mortgage Businesses – Overview – Servicing Obligations” under “Repurchase Obligations, Off-Balance Sheet Arrangements, and Other Contractual Obligations.”

CRITICAL ACCOUNTING POLICIES

There have been no significant changes to FHN’s critical accounting policies as described in “Critical Accounting Policies” beginning on page 64 of Exhibit 13 to FHN’s Annual Report on Form 10-K for the year ended December 31, 2016.

ACCOUNTING CHANGES ISSUED BUT NOT CURRENTLY EFFECTIVE

Refer to Note 1 – Financial Information for a detail of accounting standards that have been issued but are not currently effective.

NON-GAAP INFORMATION

The following table provides a reconciliation of non-GAAP items presented in this MD&A to the most comparable GAAP presentation:

Table 23—Non-GAAP to GAAP Reconciliation

	Three Months Ended March 31
(Dollars in thousands)	2017			2016
Average Tangible Common Equity (Non-GAAP)
Average total equity (GAAP)	$	2,722,668		$	2,644,374
Less: Average noncontrolling interest (a)		295,431			295,431
Less: Average preferred stock (a)		95,624			95,624
(A) Total average common equity	$	2,331,613		$	2,253,319
Less: Average intangible assets (GAAP) (b)		211,757			216,855
(B) Average Tangible Common Equity (Non-GAAP)	$	2,119,856		$	2,036,464
Net Income Available to Common Shareholders
(C) Net income available to common shareholders (annualized) (GAAP)	$	219,073		$	192,299
Ratios
(C)/(A) Return on average common equity (“ROE”) (GAAP) (c)		9.40	%		8.53	%
(C)/(B) Return on average tangible common equity (“ROTCE”) (Non-GAAP) (d)		10.33			9.44

(a) Included in Total equity on the Consolidated Condensed Statements of Condition.

(b) Includes Goodwill and other intangible assets, net of amortization.

(c) Ratio is annualized net income available to common shareholders to average common equity.

(d) Ratio is annualized net income available to common shareholders to average tangible common equity.

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Item 3. Quantitative and Qualitative Disclosures about Market Risk

The information called for by this item is contained in

(a) Management’s Discussion and Analysis of Financial Condition and Results of Operations included as Item 2 of Part I of this report, including in particular the section entitled “Risk Management” beginning on page 91 of this report and the subsections entitled “Market Risk Management” beginning on page 91 and “Interest Rate Risk Management” beginning on page 92 of this report, and

(b) Note 14 to the Consolidated Condensed Financial Statements appearing on pages 40-46 of this report,

all of which materials are incorporated herein by reference. For additional information concerning market risk and our management of it, refer to: Management’s Discussion and Analysis of Financial Condition and Results of Operations appearing in Exhibit 13 to FHN’s Annual Report on Form 10-K for the year ended December 31, 2016, including in particular the section entitled “Risk Management” beginning on page 47 of that Report and the subsections entitled “Market Risk Management” beginning on page 48 and “Interest Rate Risk Management” appearing on pages 50-51 of that Report; and Note 22 to the Consolidated Financial Statements appearing on pages 153-158 of Exhibit 13 to FHN’s Annual Report on Form 10-K for the year ended December 31, 2016.

Item 4. Controls and Procedures

(a) Evaluation of Disclosure Controls and Procedures. FHN’s management, with the participation of FHN’s chief executive officer and chief financial officer, has evaluated the effectiveness of FHN’s disclosure controls and procedures (as defined in Exchange Act Rule 13a-15(e)) as of the end of the period covered by this quarterly report. Based on that evaluation, the chief executive officer and the chief financial officer have concluded that FHN’s disclosure controls and procedures were effective as of the end of the period covered by this report.

(b) Changes in Internal Control over Financial Reporting. There have not been any changes in FHN’s internal control over financial reporting during FHN’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, FHN’s internal control over financial reporting.

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Part II.

OTHER INFORMATION

Item 1 Legal Proceedings

The “Contingencies” section of Note 10 to the Consolidated Condensed Financial Statements beginning on page 26 of this Report is incorporated into this Item by reference.

Item 1A Risk Factors

Not applicable

Item 2 Unregistered Sales of Equity Securities and Use of Proceeds

(a) & (b) Not Applicable

(c) Table 7 captioned “Issuer Purchases of Common Stock,” including the explanatory notes, which material is included in Item 2 of Part I of this report under the heading “First Horizon National Corporation Management’s Discussion and Analysis of Financial Condition and Results of Operations,” beginning on page 76 of this report, is incorporated herein by reference.

Items 3, 4, and 5

Not applicable

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Item 6. Exhibits

(a) Exhibits

Exhibits marked * represent management contracts or compensatory plans or arrangements required to be identified as such and filed as exhibits.

Exhibits marked ** are “furnished” pursuant to 18 U.S.C. Section 1350 and are not “filed” as part of this Report or as a separate disclosure document.

Exhibits marked *** contain or consist of interactive data file information which is unaudited and unreviewed.

In many agreements filed as exhibits, each party makes representations and warranties to other parties. Those representations and warranties are made only to and for the benefit of those other parties in the context of a business contract. Such representations and warranties may be partially or fully waived by such parties, or not enforced by such parties, in their discretion. No such representation or warranty may be relied upon by any other person for any purpose.

Exhibit	Description
2.1	Agreement and Plan of Merger, dated as of May 3, 2017, by and among First Horizon National Corporation, Capital Bank Financial Corp., and Firestone Sub, Inc., incorporated by reference to Exhibit 2.1 to First Horizon’s Current Report on Form 8-K filed May 5, 2017.
4	FHN agrees to furnish to the Securities and Exchange Commission upon request a copy of each instrument defining the rights of the holders of the senior and subordinated long-term debt of FHN and its consolidated subsidiaries.
10.1*	Form of Grant Notice for Executive Performance Stock Units [2017]
10.2*	Form of Grant Notice for Executive Stock Options [2017]
10.3*	Form of Grant Notice for Executive Restricted Stock Units [2017]
10.4*	Sections of Director Policy pertaining to compensation
10.5	Form of Company Support Agreement, incorporated by reference to Exhibit 10.1 to First Horizon’s Current Report on Form 8-K filed May 5, 2017.
31(a)	Rule 13a-14(a) Certifications of CEO (pursuant to Section 302 of the Sarbanes-Oxley Act of 2002)
31(b)	Rule 13a-14(a) Certifications of CFO (pursuant to Section 302 of the Sarbanes-Oxley Act of 2002)
32(a)**	18 USC 1350 Certifications of CEO (pursuant to Section 906 of the Sarbanes-Oxley Act of 2002)
32(b)**	18 USC 1350 Certifications of CFO (pursuant to Section 906 of the Sarbanes-Oxley Act of 2002)
101***	The following financial information from First Horizon National Corporation’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017, formatted in XBRL: (i) Consolidated Condensed Statements of Condition at March 31, 2017 and December 31, 2016; (ii) Consolidated Condensed Statements of Income for the Three Months Ended March 31, 2017 and 2016; (iii) Consolidated Condensed Statements of Comprehensive Income for the Three Months Ended March 31, 2017 and 2016; (iv) Consolidated Condensed Statements of Equity for the Three Months Ended March 31, 2017 and 2016; (v) Consolidated Condensed Statements of Cash Flows for the Three Months Ended March 31, 2017 and 2016; (vi) Notes to Consolidated Condensed Financial Statements.
101.INS***	XBRL Instance Document
101.SCH***	XBRL Taxonomy Extension Schema
101.CAL***	XBRL Taxonomy Extension Calculation Linkbase
101.LAB***	XBRL Taxonomy Extension Label Linkbase
101.PRE***	XBRL Taxonomy Extension Presentation Linkbase
101.DEF***	XBRL Taxonomy Extension Definition Linkbase

103

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	FIRST HORIZON NATIONAL CORPORATION (Registrant)
DATE: May 8, 2017	By:	/s/ William C. Losch III
	Name:	William C. Losch III
	Title:	Executive Vice President and Chief Financial Officer
		(Duly Authorized Officer and Principal Financial Officer)

104

EXHIBIT INDEX

Exhibits marked * represent management contracts or compensatory plans or arrangements required to be identified as such and filed as exhibits.

Exhibits marked ** are “furnished” pursuant to 18 U.S.C. Section 1350 and are not “filed” as part of this Report or as a separate disclosure document.

Exhibits marked *** contain or consist of interactive data file information which is unaudited and unreviewed.

In many agreements filed as exhibits, each party makes representations and warranties to other parties. Those representations and warranties are made only to and for the benefit of those other parties in the context of a business contract. Such representations and warranties may be partially or fully waived by such parties, or not enforced by such parties, in their discretion. No such representation or warranty may be relied upon by any other person for any purpose.

Exhibit	Description
2.1	Agreement and Plan of Merger, dated as of May 3, 2017, by and among First Horizon National Corporation, Capital Bank Financial Corp., and Firestone Sub, Inc., incorporated by reference to Exhibit 2.1 to First Horizon’s Current Report on Form 8-K filed May 5, 2017.
4	FHN agrees to furnish to the Securities and Exchange Commission upon request a copy of each instrument defining the rights of the holders of the senior and subordinated long-term debt of FHN and its consolidated subsidiaries.
10.1*	Form of Grant Notice for Executive Performance Stock Units [2017]
10.2*	Form of Grant Notice for Executive Stock Options [2017]
10.3*	Form of Grant Notice for Executive Restricted Stock Units [2017]
10.4*	Sections of Director Policy pertaining to compensation
10.5	Form of Company Support Agreement, incorporated by reference to Exhibit 10.1 to First Horizon’s Current Report on Form 8-K filed May 5, 2017.
31(a)	Rule 13a-14(a) Certifications of CEO (pursuant to Section 302 of the Sarbanes-Oxley Act of 2002)
31(b)	Rule 13a-14(a) Certifications of CFO (pursuant to Section 302 of the Sarbanes-Oxley Act of 2002)
32(a)**	18 USC 1350 Certifications of CEO (pursuant to Section 906 of the Sarbanes-Oxley Act of 2002)
32(b)**	18 USC 1350 Certifications of CFO (pursuant to Section 906 of the Sarbanes-Oxley Act of 2002)
101***	The following financial information from First Horizon National Corporation’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017, formatted in XBRL: (i) Consolidated Condensed Statements of Condition at March 31, 2017 and December 31, 2016; (ii) Consolidated Condensed Statements of Income for the Three Months Ended March 31, 2017 and 2016; (iii) Consolidated Condensed Statements of Comprehensive Income for the Three Months Ended March 31, 2017 and 2016; (iv) Consolidated Condensed Statements of Equity for the Three Months Ended March 31, 2017 and 2016; (v) Consolidated Condensed Statements of Cash Flows for the Three Months Ended March 31, 2017 and 2016; (vi) Notes to Consolidated Condensed Financial Statements.
101.INS***	XBRL Instance Document
101.SCH***	XBRL Taxonomy Extension Schema
101.CAL***	XBRL Taxonomy Extension Calculation Linkbase
101.LAB***	XBRL Taxonomy Extension Label Linkbase
101.PRE***	XBRL Taxonomy Extension Presentation Linkbase
101.DEF***	XBRL Taxonomy Extension Definition Linkbase

105

EX-10.1

Exhibit 10.1

GRANT NOTICE

Performance Stock Units—Core ROE Rank

[Participant Name]

You have been granted Performance Stock Units (PSUs) of First Horizon National Corporation (FHNC):

GRANT DATE:	, 2017	GOVERNING PLAN:	Equity Compensation Plan
TARGET NUMBER OF PSUS GRANTED:		PERFORMANCE PERIOD:	Three-year period 2017 thru 2019
VESTING DATE OF PSUS:	May 12, 2020 if performance goals are met	PAYMENT DATE OF PSUS:	May 12, 2022

This award of PSUs is granted under Section 10 of the Governing Plan, and is governed by the terms and conditions of that Plan and by policies, practices, and procedures (“Procedures”) of the Compensation Committee (that administers the Plan) that are in effect during the performance and vesting periods. Also, this award is subject to the terms and restrictions of FHNC’s stock ownership guidelines and Compensation Recovery Policy (“Policy”) as in effect during the vesting period. Amendments to any of those documents after the Grant Date may apply to this award.

PSUs that have not been forfeited prior to the Vesting Date will satisfy the performance requirement of this award based on the extent to which the performance goal is achieved during the Performance Period, all as set forth in Exhibit A to this Notice. Performance for this award in Exhibit A is based on FHNC’s ranking of core average annual return on equity (“CROE rank”) relative to peers’ average annual return on equity in the Performance Period. The target number of PSUs granted is the number that may be paid if CROE rank is achieved at the mid-level in Exhibit A; higher rank may result in a higher amount paid (up to 150% of target); a lesser number may be paid if a lesser rank is achieved; and, all PSUs will forfeit if the minimum CROE rank in Exhibit A is not achieved. The Committee will make appropriate adjustments of FHNC accounting numbers so that results are comparable across periods and will make final determinations of performance achievement and any final adjustments, all as provided or permitted by Committee action and the Governing Plan. PSUs that do not vest as a result of a failure to achieve performance goals as determined by the Committee automatically are forfeited.

This award also is subject to possible reduction or forfeiture in advance of vesting in accordance with the Governing Plan, the Procedures, and the Policy. As of the Grant Date, the Procedures provide (among other things) that: (a) forfeiture generally will occur immediately upon termination of employment—you must remain continuously employed by FHNC or one of its subsidiaries through the close of business on the Vesting Date; but (b) if your termination of employment occurs because of your death, permanent disability, or approved retirement (normal or early), the PSUs generally will be forfeited pro-rata in proportion to the part of the Performance Period during which you are not employed. The Committee or its delegate will document death or determine whether disability or retirement status has been achieved and apply pro-rationing. PSUs may be suspended pending any such determinations and approvals. In any of those cases in (b), the non-forfeited PSUs will vest or not vest based on achievement of performance goals over the entire Performance Period.

Normal retirement occurs at or after age 65 with at least 5 years of service, and early retirement occurs at or after age 55 with at least 15 years of service. In the case of retirement: retirement treatment must be approved by the Committee; the Committee may impose conditions to receiving such treatment; and the Committee may deviate from pro-rationing treatment. The Committee’s general requirements to approve retirement are described in the Procedures.

Other forfeiture provisions apply to this award. Currently the Governing Plan and Policy provide for forfeiture of this award or recovery of amounts paid if you engage in certain types of misconduct or if performance data is materially false or misleading and you are substantially responsible for its accuracy. This award is subject to forfeiture or recovery to the extent required by applicable capital conservation rules or other regulatory requirements. Also, this award will be forfeited, whether or not it is vested or paid, if during the restriction period applicable to this award: (1) you are terminated for Cause as defined in the Governing Plan; or (2) you, either on your own behalf or on behalf of any other person or entity, in any manner directly or indirectly solicit, hire, or encourage any person who is then an employee or customer of FHNC or any and all of its subsidiaries or affiliates to leave the employment of, or to end, diminish, or move any of his, her, or its accounts or relationships with, FHNC or any and all of its subsidiaries or affiliates. The restriction period for this award begins on the Grant Date and ends on the second anniversary of the Vesting Date. By accepting this PSU award, you acknowledge that FHNC may reduce or offset other amounts owed to you, including but not limited to wages, bonuses, or commissions owed, among other things, to satisfy any repayment obligation.

PSUs are not shares of stock, have no voting rights, and are not transferable. Each PSU that vests and is paid will result in one share of FHNC common stock being issued to you, subject to withholding for taxes, as provided below. Subject to provisions of the Governing Plan, the Committee may choose to pay all or a portion of vested PSUs in cash, based on the fair market value of FHNC common stock on the Vesting Date. PSUs will accrue cash dividend equivalents to the extent cash dividends are paid on common shares prior to the Payment Date. From the Grant Date until the Payment Date, dividend equivalents accumulate (without interest) as if each PSU were an outstanding share. To the extent that PSUs are paid, the accumulated dividend equivalents associated with those PSUs (accrued through the Payment Date) will be paid in cash as provided below. Dividend equivalents associated with forfeited PSUs likewise are forfeited. Stock splits and stock dividends will result in a proportionate adjustment to the number of PSUs as provided in the Plan and Procedures. If within two years after vesting FHNC discovers an error in any amount vested or paid which, had it been known, would have resulted in a change in the amount of 5% or more: if the error favored FHNC, FHNC will pay you (on the Payment Date) the difference in shares, subject to applicable taxes; or, if the error favored you, FHNC will reduce your shares and dividend equivalents by an amount equal to the pre-tax difference.

This award is not fully vested until the performance and service requirements both are fulfilled. Performance vesting will occur when the Committee makes a final determination of the extent (measured as a percentage of target) to which the performance goal of this award is achieved during the Performance Period, as provided above and in Exhibit A. Service vesting—fulfillment of the requirement that you remain continuously employed with FHNC—will occur on the Vesting Date.

Vesting may be accelerated by the Committee as provided in the Governing Plan. If vesting has fully occurred or is accelerated, payment may be accelerated by the Committee. You have no right to any acceleration of vesting or payment by action of the Committee.

Payment of this award will occur on the Payment Date, after a two-year mandatory Deferral Period. During the Deferral Period FHNC will retain the vested units and all dividend equivalents, without interest, until the Payment Date. During the Deferral Period neither this award nor any rights associated with it may be transferred in any manner other than by will or the laws of intestacy.

If a Change in Control occurs and you experience a Qualifying Termination (all as defined in the Plan), then vesting and payment will be accelerated as provided in the Plan. The amount paid at vesting will be, without pro-rationing: (a) the Target number of PSUs, if the Change in Control occurs before the end of the Performance Period or the Committee is unable, for any other reason, to fairly determine performance results; or (b) the greater of the Target number of PSUs or the number determined by the Committee based on actual performance results, if the Change in Control occurs after the end of the Performance Period. In the case of (b), payment may be reasonably delayed to allow the Committee to obtain information necessary to determine actual performance results.

If a Change in Control (as defined in the Plan) occurs before the end of the Performance Period and there is no Qualifying Termination, then this award may be modified, converted, or canceled by the Committee or otherwise without your consent. The Committee is permitted to exercise discretion in a Change in Control situation in different ways for different persons, and in different ways for different awards; however, in all cases the Committee will seek in good faith to avoid any significant diminishment or enlargement of value measured at the time of the Change in Control. The following provisions apply in the two Change in Control scenarios presented, (A) and (B), and illustrate the Committee’s power in other situations. In these scenarios the “Deal Value” of an FHNC common share is, as applicable, the dollar value per FHNC share paid to FHNC shareholders in the Change in Control transaction or the dollar value per FHNC share of the consideration received by FHNC shareholders in the Change in Control transaction, measured at the time the Change in Control is consummated.

(A) If a Change in Control occurs before the end of the Performance Period, the Committee may cancel this award in exchange for its pro-rated target value at that time, with pro-rationing based on the portion of the Performance Period occurring prior to the Change in Control. If so cancelled, the performance goal would be waived with performance presumed at 100% of target, and all vesting and payment would be accelerated. In that case the pro-rated number of FHNC shares would be paid or credited (subject to withholding taxes) to you shortly or immediately before consummation of the Change in Control transaction so that your award shares will be outstanding at the time of consummation or, alternatively, payment will be made to you in cash at the Deal Value of the pro-rated award shares.

(B) If a Change in Control occurs before the end of the Performance Period, if FHNC shares cease to be publicly traded as a result of the Change in Control, and if vesting of this award is not accelerated prior to cessation of public trading, then in that case FHNC agrees to do at least one of the following, in all cases as determined by the Committee in its discretion: (i) convert the FHNC shares covered by this award into shares of the acquiring or surviving company based on the conversion or exchange rate provided in the Change in Control transaction, and modify the performance goal so as provide you with an opportunity to achieve performance based on CROE rank of the surviving or acquiring company or some other appropriate performance measure based on return-on-equity; or (ii) presume satisfaction of the performance goal at 100% of target, and convert the FHNC shares which would have been paid at 100% (target) performance into either (1) a dollar amount equal to the Deal Value of those shares, which dollar amount would not accrue interest, or (2) a number of share units of the acquiring or surviving company based on the conversion or exchange rate provided in the Change in Control transaction. In either case, this award would continue to require service through the Vesting Date, and would be paid on the Payment Date.

The discretion provided to the Committee in the foregoing provisions is subordinate to any requirement of the Plan applicable to this award. If, before or after the Grant Date, you and FHNC enter into a written contract explicitly providing for the treatment of this award in connection with your termination or a Change in Control, the provisions of this award are subordinate to those explicit contractual provisions.

Vesting and payment each are taxable events for you. Your withholding and other taxes will depend upon FHNC’s stock value on the Vesting and Payment Dates, and the amount of dividends and equivalents paid to you. As of the Grant Date, the Committee’s Procedures provide that: at vesting you are required to pay FHNC withholding taxes that are due, and you agree that FHNC may withhold the appropriate amounts from salary and other cash compensation otherwise payable to you; and, at payment, FHNC will withhold shares and cash in the amount necessary to cover your withholding taxes at that time. However, the Procedures may be changed at any time. You are not permitted to make any election in accordance with Section 83(b) of the Internal Revenue Code of 1986, as amended, to include in your gross income for federal income tax purposes the value of the PSUs this year. If you make a Section 83(b) election, this award will forfeit. FHNC reserves the right to defer payment of PSUs if that payment would result in a loss of tax deductibility.

Questions about your PSU award?

Important information concerning the Governing Plan and this PSU award is contained in a prospectus. Copies of the current prospectus (including all applicable supplements) are delivered separately, and you may request a copy of the Plan or prospectus at any time. If you have questions about your award or need a copy of the Governing Plan, the related prospectus, or the current Procedures, please contact Fidelity Investment’s Executive Relationship Officer at                     . For all your personal stock incentive information, you may view your award and other information on Fidelity’s website at                     .

EX-10.2

Exhibit 10.2

GRANT NOTICE

Executive Stock Option

[Participant Name]

You have been granted an option to purchase shares of First Horizon National Corporation (“FHNC”) common stock:

GRANT DATE:	, 2017	GOVERNING PLAN:	Equity Compensation Plan
NUMBER OF SHARES GRANTED:		OPTION EXPIRATION DATE:	March 2, 2024
OPTION PRICE PER SHARE:	$	VESTING DATES (25% EACH DATE):	March 2, 2018 thru 2021

This stock option award is granted under the Governing Plan specified above, and is governed by the terms and conditions of that Plan. It is also governed by policies, practices, and procedures (“Procedures”) of the Compensation Committee (that administers the Plan) and by the terms and restrictions of FHNC’s stock ownership guidelines and Compensation Recovery Policy (“Policy”), as in effect during the term of this award. Amendments to any of those documents after the Grant Date may apply to this award.

This award is subject to possible reduction, early termination, and forfeiture, even if vested, in accordance with the Governing Plan, Procedures, and Policy, and a forfeiture of profit following exercise may occur in certain circumstances as provided in the Plan (in particular, in Section 6), the Policy, the Procedures, and this Grant Notice. As of the Grant Date, the Procedures provide (among other things) that:

(a) forfeiture generally will occur immediately upon termination of employment—you must remain continuously employed by FHNC or one of its subsidiaries through the close of business on the applicable exercise date; HOWEVER—

(b) if your termination of employment occurs because of your death, permanent disability, or normal retirement (age 65 or later with at least 5 years of service), this award will continue to vest in accordance with the schedule set forth above and will terminate upon the earliest to occur of (i) the Expiration Date set forth above, (ii) the third anniversary of your termination of employment, or (iii) the occurrence of a forfeiture event other than termination of employment;

(c) if your termination of employment occurs because of your early retirement (age 55 or later with at least 15 years of service), the then-unvested portion of your award will be forfeited immediately but the then-vested portion will continue to be exercisable as provided in clause (b) as if you had normally retired; and

(d) if your employment is terminated by us involuntarily other than for Cause, the then-unvested portion of your award will be forfeited immediately but the then-vested portion will remain outstanding and will terminate upon the earliest to occur of (i) the Expiration Date set forth above, (ii) the 90^th day following your termination of employment, or (iii) the occurrence of a forfeiture event other than termination of employment.

Other forfeiture provisions apply to this award. Currently the Governing Plan and Policy provide for forfeiture of this award or recovery of exercised shares or proceeds if you engage in certain types of misconduct. This award is subject to forfeiture or recovery to the extent required by applicable capital conservation rules or other regulatory requirements. Also, this award will be forfeited, or if already exercised you must pay in cash to FHNC the gross pre-tax value reported to the IRS measured at exercise, if during the restriction period applicable to this award: (1) you are terminated for Cause as defined in the Governing Plan; or (2) you, either on your own behalf or on behalf of any other person or entity, in any manner directly or indirectly solicit, hire, or encourage any person who is then an employee or customer of FHNC or any and all of its subsidiaries or affiliates to leave the employment of, or to end, diminish, or move any of his, her, or its accounts or relationships with, FHNC or any and all of its subsidiaries or affiliates. The restriction period for this award begins on the Grant Date and ends, for any portion exercised, on the second anniversary of the exercise date. By accepting this stock option award, you acknowledge that FHNC may reduce or offset other amounts owed to you, including but not limited to wages, bonuses, or commissions owed, among other things, to satisfy any repayment obligation.

Vesting may be accelerated as provided in the Governing Plan. If a Change in Control (as defined in that Plan) occurs, if FHNC does not survive that event as a company whose stock is publicly traded, and if vesting of this award is not accelerated prior to cessation of public trading, then this award will be modified or canceled without your consent. In that case FHNC agrees to take action that either will (in effect) substitute for this award a new equity-based award (which need not be a stock option and need not be payable in stock), or will cancel this award in exchange for its immediate spread value at that time, in any case based on the transaction value of FHNC shares and in all cases as determined by the Committee in its discretion. The Committee is permitted to exercise its discretion in a Change in Control situation in different ways for different persons, and in different ways for different awards; however, in all cases the Committee will seek in good faith to avoid any significant diminishment or enlargement of value measured at the time of the Change in Control based on the transaction value of FHNC shares.

This option award is nonqualified, so that your exercise of this option is taxable. Your withholding and other taxes will depend principally upon the extent to which FHNC’s stock value exceeds the option price (i.e., the spread) on the exercise date.

QUESTIONS ABOUT YOUR STOCK OPTION AWARD?

Important information concerning the Governing Plan and this award is contained in a prospectus. Copies of the current prospectus (including all applicable supplements) are delivered separately, and you may request a copy of the Plan or prospectus at any time. If you have questions about your award or need a copy of the Governing Plan, the related prospectus, or the current Procedures, please contact Fidelity Investment’s Executive Relationship Officer at                     . For all your personal stock incentive information, you may view your award and other information on Fidelity’s website at                     .

EX-10.3

Exhibit 10.3

GRANT NOTICE

Executive RSUs

[Recipient Name]

You have been granted an award of restricted stock units (“RSUs”) of First Horizon National Corporation (“FHNC”):

AMOUNT OF AWARD:	Restricted Stock Units	GRANT DATE:	, 2017
GOVERNING PLAN:	Equity Compensation Plan	VESTING DATE:	March 2, 2020

This award of RSUs is granted under the Governing Plan specified above, and is governed by the terms and conditions of that Plan and by policies, practices, and procedures (“Procedures”) of the Compensation Committee (that administers the Plan) that are in effect from time to time during the vesting period. Also, this award is subject to the terms and restrictions of FHNC’s Compensation Recovery Policy (“Policy”) as in effect during the vesting period. Amendments to any of those documents after the Grant Date may apply to this award.

This award is subject to possible reduction or forfeiture in advance of vesting in accordance with the Governing Plan, the Procedures, and the Policy. As of the Grant Date, the Procedures provide (among other things) that: (a) forfeiture generally will occur immediately upon termination of employment—you must remain continuously employed by FHNC or one of its subsidiaries through the close of business on the Vesting Date; but (b) if your termination of employment occurs because of your death, permanent disability, or approved retirement (normal or early), the RSUs generally will be forfeited pro-rata in proportion to the part of the vesting period during which you are not employed. The Committee or its delegate will document death or determine whether disability or retirement status has been achieved and apply pro-rationing. RSUs may be suspended pending any such determinations and approvals. In any of those cases in (b), vesting of the non-forfeited RSUs will accelerate unless, in the case of approved retirement, the Committee determines otherwise.

Normal retirement occurs at or after age 65 with at least 5 years of service, and early retirement occurs at or after age 55 with at least 15 years of service. In the case of retirement: retirement treatment must be approved by the Committee; the Committee may impose conditions to receiving such treatment; and the Committee may deviate from pro-rationing. The Committee’s general requirements to approve retirement are described in the Procedures.

Other forfeiture provisions apply to this RSU award. Currently the Governing Plan and Policy provide for forfeiture of this award or recovery of amounts paid if you engage in certain types of misconduct. This award is subject to forfeiture or recovery to the extent required by applicable capital conservation rules or other regulatory requirements. Also, this award will be forfeited, or if already vested you must pay in cash to FHNC the gross pre-tax value of this award measured at vesting, if during the restriction period applicable to this award: (1) you are terminated for Cause as defined in the Governing Plan; or (2) you, either on your own behalf or on behalf of any other person or entity, in any manner directly or indirectly solicit, hire, or encourage any person who is then an employee or customer of FHNC or any and all of its subsidiaries or affiliates to leave the employment of, or to end, diminish, or move any of his, her, or its accounts or relationships with, FHNC or any and all of its subsidiaries or affiliates. The restriction period for this award begins on the Grant Date and ends on the second anniversary of the Vesting Date. By accepting this RSU award, you acknowledge that FHNC may reduce or offset other amounts owed to you, including but not limited to wages, bonuses, or commissions owed, among other things, to satisfy any repayment obligation.

The Committee reserves the right, in its sole discretion, to waive forfeiture or accelerate vesting in whole or part. You have no right to any waiver or acceleration. If a request for a waiver were granted, only the units not covered by the waiver would forfeit.

RSUs are not shares of stock, have no voting rights, and are not transferable. Each RSU that vests will result in one share of FHNC common stock being issued to you, subject to withholding for taxes. Subject to provisions of the Governing Plan, the Committee may choose to pay all or a portion of vested RSUs in cash, based on the fair market value of FHNC common stock on the Vesting Date.

Your RSUs will accrue cash dividend equivalents to the extent cash dividends are paid on common shares prior to vesting. From the Grant Date until the Vesting Date, dividend equivalents accumulate (without interest) as if each RSU were an outstanding share. To the extent that RSUs vest, the accumulated dividend equivalents associated with vested RSUs will be paid in cash shortly after vesting. Dividend equivalents associated with forfeited RSUs likewise are forfeited. Stock splits and stock dividends will result in a proportionate adjustment to the number of RSUs as provided in the Plan and Procedures.

Vesting is a taxable event for you. Your withholding and other taxes will depend upon FHNC’s stock value on the Vesting Date and the amount of dividend equivalents paid to you. As of the Grant Date, the Committee’s Procedures provide that FHNC will withhold shares and cash at vesting in the amount necessary to cover your withholding taxes; however, the Procedures may be changed at any time. You are not permitted to make any election in accordance with Section 83(b) of the Internal Revenue Code of 1986, as amended, to include in your gross income for federal income tax purposes the value of this award this year. If you make a Section 83(b) election, this award will forfeit.

QUESTIONS ABOUT YOUR RSU AWARD?

Important information concerning the Governing Plan and this RSU award is contained in a prospectus. Copies of the current prospectus (including all applicable supplements) are delivered separately, and you may request a copy of the Governing Plan or prospectus at any time. If you have questions about your RSU award or need a copy of the Governing Plan, related prospectus, or current Procedures, please contact Fidelity Investment’s Executive Relationship Officer at                     . For all your personal stock incentive information, you may view your award and other information on Fidelity’s website at                             .

EX-10.4

Exhibit 10.4

SECTIONS OF DIRECTOR POLICY

PERTAINING TO COMPENSATION

(As amended April 24, 2017)

This exhibit sets forth excerpts from the Director Policy of First Horizon National Corporation of all sections in that Policy pertaining to compensation of directors. Other sections of the Policy have been omitted.

II. IMPLEMENTATION

* * * * *

Compensation

General. In addition to the other compensation set forth in this section, outside directors on the FHNC Board will receive the compensation set forth in the table below for their service as a director.

Base Retainer—$130,000 total:	$	65,000 cash annually
	$	65,000 RSUs annually
Additional retainers:		Annual cash amounts:
Lead director		$25,000
Outside Chairman of the Board*		$125,000
Chair of Audit Committee		$32,000
Chair of Executive & Risk Committee		$28,000
Chair of Compensation Committee		$17,500
Chair of other committees **		$10,000
Non-chair service on Audit Committee		$8,000
Non-chair service on Executive & Risk Committee		$8,000

* The Board may determine to pay this additional retainer in whole or part in RSUs. If there is an outside Chairman, the Chairman’s additional retainer is to be paid in lieu of all committee-related additional retainer amounts other than for service on the Executive & Risk Committee.

** No extra compensation is paid to an Audit Committee member for Trust Audit Committee service.

No extra compensation is paid for meeting attendance, special meetings, or special committee service unless approved by the Board. Outside directors are not separately compensated for FTB Board or FTB committee service. Inside directors will receive no compensation for Board or committee membership or chair status. The total of each director’s cash base retainer and additional retainer amounts (“total cash compensation”) will be calculated after the organization meeting of the Board following the annual meeting of shareholders based on committee assignments and lead director status established or continued at that Board meeting. Each director’s total cash compensation will be divided into four equal installments and paid quarterly in advance during the pay year. Directors are permitted to elect to defer cash compensation into an interest-accruing account of the First Horizon National Corporation Non-Qualified Deferred Compensation Plan or any other duly adopted deferral plan, now existing or hereafter approved. As used in this section of this Policy, a “calendar year” consists of the twelve months January through December while a “pay year” consists of the last three quarters of a calendar year plus the first quarter of the next year.

RSU Awards. The dollar amount of the RSU portion of each director’s base retainer will be converted into an award of restricted stock units (“RSUs”) granted under FHNC’s Equity Compensation Plan or any duly adopted successor plan. An RSU represents the right to receive a share of FHNC/ common stock at vesting as provided below. RSU awards for each pay year are to be granted annually in advance promptly after the organization meeting of the Board following the annual meeting of shareholders. The number of RSUs to be granted for the pay year will be determined as provided below under “Administration.” RSUs granted to directors: generally will vest on April 2 of the calendar year following grant; will earn dividend equivalents that will cumulate without interest and be paid in cash at vesting; and will carry no voting or other rights associated with actual stock. Payment of units will be deferred for two years after vesting; dividends will continue to accrue during the deferral period. When the deferral period ends, shares and cash (for dividend equivalents) will be delivered reasonably promptly (but no more than four weeks) thereafter, and may be delivered electronically, through an administrative vendor, or otherwise as is administratively convenient. Each director is responsible for any income or other taxes associated with RSUs.

RSUs and Termination of Service. If a director ceases to serve on the Board for any reason, then all unvested RSUs will be forfeited unless the departure is due to one of these exceptions: death, disability, acceptance of a Bylaw tender, normal shareholder action, or change in control. In cases involving one of those exceptions: forfeiture will be avoided and vesting of RSUs will be accelerated to the date of departure. In addition, in connection with retirement a director may request the Board to waive forfeiture caused by that departure in whole or part. For purposes of non-employee director equity-based awards: “disability” means total and permanent disability; and “fair market value” and “change in control” have the meanings given in the plan under which the award was granted. A “Bylaw tender” by a director is a tender of resignation required by Section 7.1(b) of FHNC’s Bylaws (or any successor section) associated with the director leaving his or her principal outside position; and, an “acceptance” of a Bylaw tender means the acceptance by the Board of such a tender of resignation. A director would leave the Board by “normal shareholder action” if he or she stands for re-election at the annual or other meeting of shareholders and either is voted out of office directly or fails to receive a majority of the votes cast and as a result is required to tender his or her resignation which is accepted by the Board. “Normal shareholder action” does not include removal from the Board for misconduct or other cause. Although the Board may act as it deems appropriate, traditionally for non-employee directors “retirement” means any termination, not caused by death or disability, after the attainment of age 65 or ten years of service as a director of FHNC.

Timing Matters. No director who is not standing for re-election at the next annual meeting is entitled to any compensation pertaining to the second quarter of the final calendar year he or she is in office, except that RSUs vesting on April 2 of that quarter shall not be disturbed by this sentence.

No continuing director is entitled to any compensation pertaining to a pay year unless and until: (a) he or she has been re-elected at the annual meeting of shareholders occurring during that pay year and has not resigned pursuant to a Bylaw tender; or (b) if the regular Board meeting of the first quarter of a pay year (the second quarter of the calendar year) begins prior to the annual meeting, he or she attends and participates as a director in that regular Board meeting.

If a new non-employee director first is elected to the Board after the annual meeting of shareholders, his or her compensation will be pro-rated and generally will begin with that quarter during which he or she first attends, and participates as a director in, a regular quarterly Board meeting. For example, a new non-employee director who is first elected in October, who attends the regular Board meeting for the fourth calendar quarter, and who participates in that meeting as a director, would receive compensation pro-rated for the remainder of the pay year, or 50% of a full pay year. Such compensation would include total cash compensation paid quarterly and a part-year award of RSUs. Cash compensation for the remainder of the pay year will be determined based on the new director’s initial committee assignments.

Assignment Change. If a non-employee director’s committee, lead director, or chair assignments are changed after the organization board meeting in the first quarter of a pay year (in this paragraph, an “assignment change”), then the quarterly payments of total cash compensation for that director for the remainder of the pay year will be adjusted up or down as follows. Management will re-calculate the director’s total cash compensation for the pay year on a blended basis, based on the quarters during which the original assignment was effective and the quarters during which the new assignment will be effective, to arrive at a new blended total cash compensation amount for the pay year. Management then will subtract from that total the cash payments (or deferrals) made to date for that pay year. The difference will be paid to the director in equal installments over the remaining quarters of the pay year. If assignment changes are made more than once for a particular director during a pay year, management shall apply the principles of this paragraph as equitably as possible to avoid an unfair windfall or shortfall.

RSU Administration. The number of RSUs granted shortly after the annual meeting will be determined by dividing the annual dollar amount of the RSU retainer by the average accounting value of FHNC’s common stock measured during the period of five consecutive trading days ending on the trading day immediately preceding the organization meeting of the Board for the pay year. However, that five-day period will be delayed to the minimum extent possible if any part of it precedes or includes the day first-quarter earnings are announced so that the entire five-day pricing period for the grant falls after the day of the announcement. The accounting value will be the average fair market discounted, using the discount used in preparing the Company’s financial statements, for the two-year mandatory payment deferral; no discount will be applied for any risk of failure to vest. The formal grant date will be determined by management for administrative necessity and expedience consistent with the provisions of this Policy. For an award of part-year RSUs to a director elected after the annual meeting, the foregoing principles will be applied using the later election date and earnings announcement date.

The RSU awards are to be implemented by management without further action by the Board. However, in a particular case or circumstance, the Board may change or make specific exceptions to any equity award otherwise called for above. The Board may waive any forfeiture in whole or part in its discretion, subject to any conditions the Board may choose to impose. Directors may receive such other awards under the Company’s Equity Compensation Plan, or any duly adopted successor plan, as may be approved by the Board. Perquisites and other benefits for non-employee directors are to be provided or paid as approved by the Board.

In no event will the number of share-settled RSUs granted in any year exceed the share limits on non-employee director grants imposed by the Equity Compensation Plan as in effect at the time of the organization meeting of the Board. To the extent a grant were to exceed that limit, the excess RSUs will be granted as provided above but will be paid entirely in cash based on the average closing price of the Company’s common stock during the five consecutive trading days ending on the trading day immediately preceding the scheduled payment date.

Regional Board Service. To improve the directors’ knowledge and understanding of FHNC and FTB and their markets, customers, and officers, and to enhance each director’s service as a director of FHNC, FHNC’s non-employee directors are encouraged to become, where practicable, members of one of FTB’s Regional Boards. A director who becomes a member of a Regional Board shall not be compensated as a member of the Regional Board but shall receive attendance fees for attendance at Regional Board meetings (at the same rate as is paid for other Regional Board members, not to exceed $500 per meeting) as part of his or her FHNC director compensation. Such director shall report back to the FHNC Board regarding his or her attendance at Regional Board meetings. Membership by an FHNC director on a Regional Board is deemed by FHNC’s Board of Directors to be part of the FHNC director’s service as a director of FHNC.

* * * * *

Retirement

Directors of FHNC or FTB shall be retired from the Board of Directors in accordance with the applicable provisions of the Bylaws of FHNC or FTB as in effect on the date hereof and as they may be amended from time to time.

Other

This policy shall be implemented by the Chairman of the Board in cooperation with the Nominating and Corporate Governance Committee of the Board of Directors of FHNC and FTB. The Chairman of the Board may adopt appropriate interpretations and procedures to assist in implementation of this Policy.

III. DELEGATION OF AUTHORITY

The Chairman of the Board and the Nominating and Corporate Governance Committee severally are delegated the authority to make exceptions to any provision of this Policy except the provisions dealing with compensation, retirement, and any matter required by the Charter or Bylaws of FHNC or FTB, or by any law, regulation or listing standard, to be acted upon only by the Board. Any exception to this policy shall be reported to the Board at its next regularly scheduled meeting.

EX-31.(A)

Exhibit 31(a)

FIRST HORIZON NATIONAL CORPORATION

RULE 13a – 14(a) CERTIFICATIONS OF CEO

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

(QUARTERLY REPORT)

CERTIFICATIONS

I, D. Bryan Jordan, certify that:

1. I have reviewed this quarterly report on Form 10-Q of First Horizon National Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 8, 2017

/s/ D. Bryan Jordan

D. Bryan Jordan

Chairman of the Board, President and Chief Executive Officer

EX-31.(B)

Exhibit 31(b)

FIRST HORIZON NATIONAL CORPORATION

RULE 13a – 14(a) CERTIFICATIONS OF CFO

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

(QUARTERLY REPORT)

CERTIFICATIONS

I, William C. Losch III, certify that:

1. I have reviewed this quarterly report on Form 10-Q of First Horizon National Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 8, 2017

/s/ William C. Losch III

William C. Losch III

Executive Vice President and Chief Financial Officer

EX-32.(A)

Exhibit 32(a)

CERTIFICATION OF PERIODIC REPORT

18 USC 1350 CERTIFICATIONS OF CEO

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002,

As Codified at 18 U.S.C. Section 1350

I, the undersigned D. Bryan Jordan, Chairman of the Board, President and Chief Executive Officer of First Horizon National Corporation (“Corporation”), hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, as follows:

1. The Corporation’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017, (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934.

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

Dated: May 8, 2017

/s/ D. Bryan Jordan

D. Bryan Jordan

Chairman of the Board, President and Chief Executive Officer

EX-32.(B)

Exhibit 32(b)

CERTIFICATION OF PERIODIC REPORT

18 USC 1350 CERTIFICATIONS OF CFO

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002,

As Codified at 18 U.S.C. Section 1350

I, the undersigned William C. Losch III, Executive Vice President and Chief Financial Officer of First Horizon National Corporation (“Corporation”), hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, as follows:

1. The Corporation’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017, (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934.

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

Dated: May 8, 2017

/s/ William C. Losch III

William C. Losch III

Executive Vice President and Chief Financial Officer

XML

Document And Entity Information	3 Months Ended
	Mar. 31, 2017 shares
Document And Entity Information [Abstract]
Entity Registrant Name	FIRST HORIZON NATIONAL CORP
Entity Central Index Key	0000036966
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Amendment Flag	false
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	233,883,250
Trading Symbol	FHN

XML

Consolidated Statements Of Condition - USD ($) $ in Thousands		Mar. 31, 2017		Dec. 31, 2016
Assets:
Cash and due from banks		$ 369,290		$ 373,274
Federal funds sold		31,495		50,838
Securities purchased under agreements to resell (Note 15)		835,222		613,682
Total cash and cash equivalents		1,236,007		1,037,794
Interest-bearing cash		2,106,597		1,060,034
Trading securities		1,167,310		897,071
Loans held-for-sale	[1]	105,456		111,248
Securities available-for-sale (Note 3)		3,939,278	[2]	3,943,499	[3]
Securities held-to-maturity (Note 3)		14,354		14,347
Loans, net of unearned income (Note 4)	[4]	19,090,074		19,589,520
Less: Allowance for loan losses (Note 5)		201,968		202,068
Total net loans		18,888,106		19,387,452
Goodwill (Note 6)		191,371		191,371
Other intangible assets, net (Note 6)		19,785		21,017
Fixed income receivables		168,315		57,411
Premises and equipment, net (March 31, 2017 and December 31, 2016 include $6.2 million and $5.8 million, respectively, classified as held-for-sale)		290,497		289,385
Real estate acquired by foreclosure	[5]	15,144		16,237
Derivative assets (Note 14)		98,120		121,654
Other assets		1,378,260		1,406,711
Total assets		29,618,600		28,555,231
Deposits:
Savings		9,573,628		9,428,197
Time deposits		1,385,818		1,355,133
Other interest-bearing deposits		6,164,775		5,948,439
Interest-bearing		17,124,221		16,731,769
Noninterest-bearing		6,355,620		5,940,594
Total deposits		23,479,841		22,672,363
Federal funds purchased		504,805		414,207
Securities sold under agreements to repurchase (Note 15)		406,354		453,053
Trading liabilities		848,190		561,848
Other short-term borrowings		79,454		83,177
Term borrowings		1,035,036		1,040,656
Fixed income payables		21,116		21,002
Derivative liabilities (Note 14)		101,347		135,897
Other liabilities		401,997		467,944
Total liabilities		26,878,140		25,850,147
First Horizon National Corporation Shareholders' Equity:
Preferred stock - Series A, non-cumulative perpetual, no par value, liquidation preference of $100,000 per share - (shares authorized - 1,000; shares issued - 1,000 on March 31, 2017 and December 31, 2016)		95,624		95,624
Common stock - $.625 par value (shares authorized - 400,000,000; shares issued - 233,883,250 on March 31, 2017 and 233,623,686 on December 31, 2016)		146,177		146,015
Capital surplus		1,391,777		1,386,636
Undivided profits		1,061,409		1,029,032
Accumulated other comprehensive loss, net (Note 8)		(249,958)		(247,654)
Total First Horizon National Corporation Shareholders' Equity		2,445,029		2,409,653
Noncontrolling interest		295,431		295,431
Total equity		2,740,460		2,705,084
Total liabilities and equity		$ 29,618,600		$ 28,555,231

[1] March 31, 2017 an d December 31, 2016 include $17.5 million and $19.3 million, respectively, of held-for-sale consumer mortgage loans secured by residential real estate in process of foreclosure.

[2] Includes $ 3 . 5 billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes.

[3] Includes $ 3.3 billion of securities pledged to secure public deposits, securities sold under agreements to repu rchase, and for other purposes .

[4] March 31, 2017 and December 31, 2016 include $30.3 million and $28.5 million, respectively, of held-to-maturity consumer mortgage loans se cured by residential real estate properties in process of foreclosure.

[5] March 31, 2017 and December 31, 2016 include $ 7.8 million and $8.1 million, respectively, of foreclosed residential real estate.

XML

Consolidated Statements of Condition (Parenthetical) - USD ($) $ in Thousands		Mar. 31, 2017	Dec. 31, 2016
Real estate acquired by foreclosure	[1]	$ 15,144	$ 16,237
Common stock, par value		$ 0.625	$ 0.625
Common stock, shares authorized		400,000,000	400,000,000
Common stock, shares issued		233,883,250	233,623,686
Preferred stock, no par value		$ 0	$ 0
Preferred Stock Liquidation Preference Value		$ 100,000	$ 100,000
Preferred stock, shares authorized		1,000	1,000
Preferred stock, shares issued		1,000	1,000
Premises and Equipment classified as held-for-sale		$ 6,200	$ 5,800
Residential Real Estate [Member]
Mortgage Loans In Process Of Foreclosure Amount		30,300	28,500
Real estate acquired by foreclosure		7,800	8,100
Residential Real Estate [Member] | Loans Held For Sale [Member]
Mortgage Loans In Process Of Foreclosure Amount		$ 17,500	$ 19,300

[1] March 31, 2017 and December 31, 2016 include $ 7.8 million and $8.1 million, respectively, of foreclosed residential real estate.

XML

Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Interest income:
Interest and fees on loans	$ 180,464	$ 158,423
Interest on investment securities available-for-sale	25,635	24,474
Interest on investment securities held-to-maturity	197	197
Interest on loans held-for-sale	1,283	1,261
Interest on trading securities	6,353	7,751
Interest on other earning assets	4,879	1,558
Total interest income	218,811	193,664
Interest on deposits:
Savings	9,210	4,190
Time deposits	2,833	2,323
Other interest-bearing deposits	4,143	2,304
Interest on trading liabilities	3,781	4,039
Interest on short-term borrowings	1,392	1,128
Interest on term borrowings	7,744	7,606
Total interest expense	29,103	21,590
Net interest income	189,708	172,074
Provision/(provision credit) for loan losses	(1,000)	3,000
Net interest income after provision/(provision credit) for loan losses	190,708	169,074
Noninterest income:
Fixed income	50,678	66,977
Deposit transactions and cash management	24,565	26,837
Brokerage, management fees and commissions	11,906	10,415
Trust services and investment management	6,653	6,565
Bankcard income	5,455	5,259
Bank-owned life insurance	3,247	3,389
Debt secutities gains/(losses), net (Note 3 and Note 8)	44	1,654
Equity securities gains/(losses), net (Note 3)	0	(80)
All other income and commissions (Note 7)	14,391	13,289
Total noninterest income	116,939	134,305
Adjusted gross income after provision/(provision credit) for loan losses	307,647	303,379
Noninterest expense:
Employee compensation, incentives, and benefits	134,932	137,151
Occupancy	12,340	12,604
Operations services	10,875	9,900
Computer software	10,799	11,587
Equipment rentals, depreciation, and maintenance	6,351	6,159
FDIC premium expense	5,739	4,921
Legal fees	5,283	4,879
Professional fees	4,746	5,199
Advertising and public relations	4,601	4,973
Communications and courier	3,800	3,750
Contract employment and outsourcing	2,958	2,425
Amortization of intangible assets	1,232	1,300
Repurchase and foreclosure provision/(provision credit)	(238)	0
All other expense (Note 7)	18,787	22,079
Total noninterest expense	222,205	226,927
Income/(loss) before income taxes	85,442	76,452
Provision/(benefit) for income taxes	27,054	24,239
Net income/(loss)	58,388	52,213
Net income attributable to noncontrolling interest	2,820	2,851
Net income/(loss) attributable to controlling interest	55,568	49,362
Preferred stock dividends	1,550	1,550
Net income/(loss) available to common shareholders	$ 54,018	$ 47,812
Basic earnings/(loss) per share (Note 9)	$ 0.23	$ 0.2
Diluted earnings/(loss) per share (Note 9)	$ 0.23	$ 0.2
Weighted average common shares (Note 9)	233,076	234,651
Diluted average common shares (Note 9)	236,855	236,666
Cash dividends declared per common share	$ 0.09	$ 0.07

XML

Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Statements of Comprehensive Income/(loss)
Net income/(loss)		$ 58,388	$ 52,213
Other comprehensive income/(loss), net of tax:
Net unrealized gains/(losses) on securities available-for-sale		(1,563)	39,160
Net unrealized gains/(losses) on cash flow hedges		(1,914)	3,465
Net unrealized gains/(losses) on pension and other postretirement plans		1,173	1,126
Other comprehensive income/(loss)	[1]	(2,304)	43,751
Comprehensive income		56,084	95,964
Comprehensive income attributable to noncontrolling interest		2,820	2,851
Comprehensive income attributable to controlling interest		53,264	93,113
Income tax expense/(benefit) of items included in Other comprehensive income:
Net unrealized gains/(losses) on securities available-for-sale		(970)	24,337
Net unrealized gains/(losses) on cash flow hedges		(1,187)	2,153
Net unrealized gains/(losses) on pension and other postretirement plans		$ 727	$ 700

[1] Due to the nature of the preferred stock issued by FHN and its subsidiaries, all components of Other comprehensive income/(loss) have been attributed solely to FHN as the controlling interest holder.

XML

Consolidated Statements of Equity-Q - USD ($) $ in Thousands		Total	Noncontrolling Interest	Controlling Member
Balance, at Dec. 31, 2015		$ 2,639,586	$ 295,431	$ 2,344,155
Net income/(loss)		52,213	2,851	49,362
Other comprehensive income/(loss)	[1]	43,751	0	43,751
Comprehensive income		95,964	2,851	93,113
Cash dividends declared:
Preferred stock ($1,550 per share for the three months ended March 31, 2017 and 2016)		(1,550)	0	(1,550)
Common stock ($.09 and $.07 per share for the three months ended March 31, 2017 and 2016, respectively)		(16,519)	0	(16,519)
Common stock repurchased	[2]	(75,763)	0	(75,763)
Common stock issued for:
Stock options and restricted stock-equity awards		157	0	157
Stock-based compensation expense		3,941	0	3,941
Dividends declared-noncontrolling interest of subsidiary preferred stock		(2,851)	(2,851)	0
Tax benefit/(benefit reversal)-stock based compensation expense		(17)	0	(17)
Balance, at Mar. 31, 2016		2,642,948	295,431	2,347,517
Balance, at Dec. 31, 2016		2,705,084	295,431	2,409,653
Net income/(loss)		58,388	2,820	55,568
Other comprehensive income/(loss)	[1]	(2,304)	0	(2,304)
Comprehensive income		56,084	2,820	53,264
Cash dividends declared:
Preferred stock ($1,550 per share for the three months ended March 31, 2017 and 2016)		(1,550)	0	(1,550)
Common stock ($.09 and $.07 per share for the three months ended March 31, 2017 and 2016, respectively)		(21,354)	0	(21,354)
Common stock repurchased	[2]	(2,016)	0	(2,016)
Common stock issued for:
Stock options and restricted stock-equity awards		2,003	0	2,003
Stock-based compensation expense		5,029	0	5,029
Dividends declared-noncontrolling interest of subsidiary preferred stock		(2,820)	(2,820)	0
Tax benefit/(benefit reversal)-stock based compensation expense		0	0	0
Balance, at Mar. 31, 2017		$ 2,740,460	$ 295,431	$ 2,445,029

[1] Due to the nature of the preferred stock issued by FHN and its subsidiaries, all components of Other comprehensive income/(loss) have been attributed solely to FHN as the controlling interest holder.

[2] 2016 includes $75.0 million repurchased under share repurchase program

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Consolidated Statements Of Equity (Parenthetical)-Q - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Common stock - cash dividends declared per share		$ 0.09	$ 0.07
Common stock repurchased	[1]	$ 2,016	$ 75,763
Preferred Stock Dividends Per Share Declared		$ 1,550	$ 1,550
Stock Repurchase Authorization [Member]
Common stock repurchased		$ 0	$ 75,000

[1] 2016 includes $75.0 million repurchased under share repurchase program

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Consolidated Statements Of Cash Flow - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Operating Activities
Net income/(loss)		$ 58,388	$ 52,213
Adjustments to reconcile net income/(loss) to net cash provided/(used) by operating activities:
Provision/(provision credit) for loan losses		(1,000)	3,000
Provision/(benefit) for deferred income taxes		6,920	4,293
Depreciation and amortization of premises and equipment		8,151	8,122
Amortization of intangible assets		1,232	1,300
Net other amortization and accretion		6,207	4,730
Net (increase)/decrease in derivatives		(16,864)	(321)
Repurchase and foreclosure provision/(provision credit)		(238)	0
(Gains)/losses and write-downs on other real estate, net		156	(162)
Litigation and regulatory matters		(294)	(375)
Stock-based compensation expense		5,029	3,941
Equity securities (gains)/losses, net		(44)	80
Debt securities (gains)/losses, net		0	(1,654)
Net (gains)/losses on sale/disposal of fixed assets		36	3,684
Loans held-for-sale:
Purchases and originations		(47,445)	(148)
Gross proceeds from settlements and sales		54,046	10,311
(Gain)/loss due to fair value adjustments and other		(809)	(91)
Net (increase)/decrease in:
Trading securities		(270,495)	(346,558)
Fixed income receivables		(110,904)	(51,194)
Interest receivable		1,055	(8,352)
Other assets		16,873	19,223
Net increase/(decrease) in:
Trading liabilities		286,342	172,634
Fixed income payables		114	33,327
Interest payable		7,360	10,206
Other liabilities		(75,014)	(29,942)
Total adjustments		(129,586)	(163,946)
Net cash provided/(used) by operating activities		(71,198)	(111,733)
Available-for-sale securities:
Sales		44	961
Maturities		135,046	135,503
Purchases		(135,676)	(159,066)
Premises and equipment:
Sales		18	1,356
Purchases		(9,318)	(11,890)
Proceeds from sale of other real estate		2,135	10,518
Net (increase)/decrease in:
Loans		499,796	102,654
Interests retained from securitizations classified as trading securities		256	1,487
Interest-bearing cash		(1,046,563)	(349,084)
Net cash provided/(used) by investing activities		(554,262)	(267,561)
Common stock:
Stock options exercised		2,045	157
Cash dividends paid		(16,465)	(14,347)
Repurchase of shares	[1]	(2,016)	(75,763)
Cash dividends paid - preferred stock - noncontrolling interest		(2,852)	(2,820)
Cash dividends paid - Series A preferred stock		(1,550)	(1,550)
Term borrowings:
Payments/maturities		(3,306)	(6,155)
Net increase/(decrease) in:
Deposits		807,641	360,685
Short-term borrowings		40,176	170,193
Net cash provided/(used) by financing activities		823,673	430,400
Net increase/(decrease) in cash and cash equivalents		198,213	51,106
Cash and cash equivalents at beginning of period		1,037,794	1,031,063
Cash and cash equivalents at end of period		1,236,007	1,082,169
Supplemental Disclosures
Total interest paid		21,478	11,223
Total taxes paid		951	617
Total taxes refunded		8,166	2,281
Transfer from loans to other real estate owned		$ 1,198	$ 1,814

[1] 2016 include s $ 75.0 million repurchased under share repurchase programs.

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Consolidated Statements Of Cash Flow (Parenthetical) $ in Thousands	3 Months Ended
	Mar. 31, 2016 USD ($)
Shares repurchased under the share repurchase program, value	$ 75,763	[1]
Stock Repurchase Authorization
Shares repurchased under the share repurchase program, value	$ 75,000

[1] 2016 include s $ 75.0 million repurchased under share repurchase programs.

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Financial Information

3 Months Ended

Mar. 31, 2017

Financial Information [Abstract]

Financial Information

Notes to the Consolidated Condensed Financial Statements (Unaudited)

Note 1 – Financial Information

Basis of Accounting.The unaudited interim consolidated condensed financial statements of First Horizon National Corporation (“FHN”), including its subsidiaries, have been prepared in conformity with accounting principles generally accepted in the United States of America and follow general practices within the industries in which it operates. This preparation requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates and assumptions are based on information available as of the date of the financial statements and could differ from actual results. In the opinion of management, all necessary adjustments have been made for a fair presentation of financial position and results of operations for the periods presented. These adjustments are of a normal recurring nature unless otherwise disclosed in this Quarterly Report on Form 10-Q. The operating results for the interim 2017 period are not necessarily indicative of the results that may be expected going forward. For further information, refer to the audited consolidated financial statements in Exhibit 13 to FHN’s Annual Report on Form 10-K for the year ended December 31, 2016.

Summary of Accounting Changes.Effective January 1, 2017, FHN adopted the provisions of Accounting Standards Update (“ASU”) 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which makes several revisions to equity compensation accounting. Under the new guidance all excess tax benefits and deficiencies that occur when an award vests, is exercised, or expires are recognized in income tax expense as discrete period items. Previously, these transactions were typically recorded directly within equity. Consistent with this change, excess tax benefits and deficiencies are no longer included within estimated proceeds when performing the treasury stock method for calculation of diluted earnings per share. Excess tax benefits are also recognized at the time an award is exercised or vests compared to the previous requirement to delay recognition until the deduction reduces taxes payable. The presentation of excess tax benefits in the statement of cash flows shifted to an operating activity from the prior classification as a financing activity.

ASU 2016-09 also provides an accounting policy election to recognize forfeitures of awards as they occur when estimating stock-based compensation expense rather than the previous requirement to estimate forfeitures from inception. Further, ASU 2016-09 permits employers to use a net-settlement feature to withhold taxes on equity compensation awards up to the maximum statutory tax rate without affecting the equity classification of the award. Under previous guidance, withholding of equity awards in excess of the minimum statutory requirement resulted in liability classification for the entire award. The related cash remittance by the employer for employee taxes is treated as a financing activity in the statement of cash flows. Transition to the new guidance was accomplished through a combination of retrospective (cash flows), cumulative-effect adjustment to equity (forfeitures) and prospective methodologies (tax windfalls and shortfalls). FHN estimates, based on currently enacted tax rates, that adoption of ASU 2016-09 in 2017 will result in an incremental effect on tax provision ranging from $3.0 million of tax benefit to $1.0 million of additional tax provision. The actual effects of adoption in 2017 will primarily depend upon the share price of the FHN’s common stock, which affects the vesting of certain performance awards, probability of exercise of certain stock options and the magnitude of windfalls for all awards upon either vesting or exercise. The effects on earnings per share calculations and election to account for forfeitures as incurred have not been significant.

Effective January 1, 2017, FHN early adopted the provisions of ASU 2016-16, “Intra-Entity Transfers of Assets Other Than Inventory” which requires recognition of the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Therefore, ASU 2016-16 reverses the previous requirement to delay recognition of the tax consequences of these transactions until the associated assets are sold to an outside party. Adoption of ASU 2016-16 did not have a significant effect on FHN.

Accounting Changes Issued but Not Currently Effective

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” ASU 2014-09 does not change revenue recognition for financial assets. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This is accomplished through a five-step recognition framework involving 1) the identification of contracts with customers, 2) identification of performance obligations, 3) determination of the transaction price, 4) allocation of the transaction price to the performance obligations and 5) recognition of revenue as performance obligations are satisfied. Additionally, qualitative and quantitative information is required for disclosure regarding the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In February 2016, the FASB issued ASU 2016-08, “Principal versus Agent Considerations,” which provides additional guidance on whether an entity should recognize revenue on a gross or net basis, based on which party controls the specified good or service before that good or service is transferred to a customer. In April 2016, the FASB issued ASU 2016-10, “Identifying Performance Obligations and Licensing,” which clarifies the original guidance included in ASU 2014-09 for identification of the goods or services provided to customers and enhances the implementation guidance for licensing arrangements.ASU 2016-12, “Narrow-Scope Improvements and Practical Expedients,” was issued in May 2016 to provide additional guidance for the implementation and application of ASU 2014-09. “Technical Corrections and Improvements” ASU 2016-20 was issued in December 2016 and provides further guidance on certain issues. These ASUs are effective in annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is permitted for annual reporting periods beginning after December 15, 2016, and associated interim periods. Transition to the new requirements may be made by retroactively revising prior financial statements (with certain practical expedients permitted) or by a cumulative effect through retained earnings. If the latter option is selected, additional disclosures are required for comparability. FHN will not early adopt these ASUs and is evaluating their effects on its revenue recognition practices. Currently, FHN anticipates that it will elect to adopt the provisions of the revenue recognition standards through a cumulative effect to retained earnings with comparability disclosures provided throughout 2018.

In February 2017, the FASB issued ASU 2017-05, “Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets” which clarifies the meaning and application of the term in substance nonfinancial asset in transactions involving both financial and nonfinancial assets. If substantially all of the fair value of the assets that are promised to the counterparty in a contract are concentrated in nonfinancial assets, then all of the financial assets promised to the counterparty are in substance nonfinancial assets within the scope of revenue recognition guidance for nonfinancial assets.ASU 2017-05 also clarifies that an entity should identify each distinct nonfinancial asset or in substance nonfinancial asset promised to a counterparty and derecognize each asset when a counterparty obtains control of it with the amount of revenue recognized based on the allocation guidance provided in ASU 2014-09. ASU 2017-05 also requires an entity to derecognize a distinct nonfinancial asset or distinct insubstance nonfinancial asset in a partial sale transaction when it 1) does not have (or ceases to have) a controlling financial interest in the legal entity that holds the asset in accordance with Topic 810 and 2) transfers control of the asset in accordance with the provisions of ASU 2014-09.Once an entity transfers control of a distinct nonfinancial asset or distinct in substance nonfinancial asset, it is required to measure any noncontrolling interest it receives (or retains) at fair value.ASU 2017-05 has the same effective date and transition provisions as ASU 2014-09 and the two standards must be adopted simultaneously although the transition methods may be different.FHN is evaluating the effects of ASU 2017-05 on its revenue recognition practices.Currently, FHN anticipates that it will elect to adopt the provisions of ASU 2017-05 through a cumulative effect to retained earnings with comparability disclosures provided throughout 2018.

In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 makes several revisions to the accounting, presentation and disclosure for financial instruments. Equity investments (except those accounted for under the equity method, those that result in consolidation of the investee, and those held by entities subject to specialized industry accounting which already apply fair value through earnings) are required to be measured at fair value with changes in fair value recognized in net income. This excludes FRB and FHLB stock holdings which are specifically exempted from the provisions of ASU 2016-01. An entity may elect to measure equity investments that do not have readily determinable market values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar instruments from the same issuer. ASU 2016-01 also requires a qualitative impairment review for equity investments without readily determinable fair values, with measurement at fair value required if impairment is determined to exist. For liabilities for which fair value has been elected, ASU 2016-01 revises current accounting to record the portion of fair value changes resulting from instrument-specific credit risk within other comprehensive income rather than earnings. FHN has not elected fair value accounting for any existing financial liabilities. Additionally, ASU 2016-01 clarifies that the need for a valuation allowance on a deferred tax asset related to available-for-sale securities should be assessed in combination with all other deferred tax assets rather than being assessed in isolation. ASU 2016-01 also makes several changes to existing fair value presentation and disclosure requirements, including a provision that all disclosures must use an exit price concept in the determination of fair value. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Transition will be through a cumulative effect adjustment to retained earnings for equity investments with readily determinable fair values. Equity investments without readily determinable fair values, for which the accounting election is made, will have any initial fair value marks recorded through earnings prospectively after adoption.

Upon adoption, FHN will reclassify all equity investments out of available-for-sale securities, leaving only debt securities within this classification. FHN has evaluated the nature of its current equity investments and determined that substantially all qualify for the election available to assets without readily determinable fair values, including its holdings of Visa Class B shares. Accordingly, FHN intends to apply this election and any fair value marks for these investments will be recognized through earnings on a prospective basis subsequent to adoption. FHN continues to evaluate the appropriate characteristics of “similar” instruments as well as related valuation inputs and methodologies for its equity investments without readily determinable fair values. The requirements of ASU 2016-01 related to assessment of deferred tax assets and disclosure of the fair value of financial instruments will not have a significant effect on FHN because its current accounting and disclosure practices conform to the requirements of ASU 2016-01. FHN also continues to evaluate the impact of ASU 2016-01 on other aspects of its current accounting and disclosure practices.

In February 2016, the FASB issued ASU 2016-02, “Leases,” which requires a lessee to recognize in its statement of condition a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. ASU 2016-02 leaves lessor accounting largely unchanged from prior standards. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. All other leases must be classified as financing or operating leases which depends on the relationship of the lessee’s rights to the economic value of the leased asset. For finance leases, interest on the lease liability is recognized separately from amortization of the right-of-use asset in earnings, resulting in higher expense in the earlier portion of the lease term. For operating leases, a single lease cost is calculated so that the cost of the lease is allocated over the lease term on a generally straight-line basis.

In transition to ASU 2016-02, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply, which would result in continuing to account for leases that commence before the effective date in accordance with previous requirements (unless the lease is modified) except that lessees are required to recognize a right-of-use asset and a lease liability for all operating leases at each reporting date based on the present value of the remaining minimum rental payments that were tracked and disclosed under previous requirements. ASU 2016-02 also requires expanded qualitative and quantitative disclosures to assess the amount, timing, and uncertainty of cash flows arising from lease arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. FHN is evaluating the impact of ASU 2016-02 on its current accounting and disclosure practices.

In March 2016, the FASB issued ASU 2016-04, “Recognition of Breakage of Certain Prepaid Stored-Value Products,” which indicates that liabilities related to the sale of prepaid stored-value products are considered financial liabilities and should have a breakage estimate applied for estimated unused funds. ASU 2016-04 does not apply to stored-value products that can only be redeemed for cash, are subject to escheatment or are linked to a segregated bank account. ASU 2016-04 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. FHN is evaluating the impact of ASU 2016-04 on its current accounting and disclosure practices.

In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments,” which revises the measurement and recognition of credit losses for assets measured at amortized cost (e.g., held-to-maturity (“HTM”) loans and debt securities) and available-for-sale (“AFS”) debt securities. Under ASU 2016-13, for assets measured at amortized cost, the current expected credit loss (“CECL”) is measured as the difference between amortized cost and the net amount expected to be collected. This represents a departure from existing GAAP as the “incurred loss” methodology for recognizing credit losses delays recognition until it is probable a loss has been incurred. The measurement of current expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Additionally, current disclosures of credit quality indicators in relation to the amortized cost of financing receivables will be further disaggregated by year of origination. ASU 2016-13 leaves the methodology for measuring credit losses on AFS debt securities largely unchanged, with the maximum credit loss representing the difference between amortized cost and fair value. However, such credit losses will be recognized through an allowance for credit losses, which permits recovery of previously recognized credit losses if circumstances change.

ASU 2016-13 also revises the recognition of credit losses for purchased financial assets with a more-than insignificant amount of credit deterioration since origination (“PCD assets”). For PCD assets, the initial allowance for credit losses is added to the purchase price. Only subsequent changes in the allowance for credit losses are recorded as a credit loss expense for PCD assets. Interest income for PCD assets will be recognized based on the effective interest rate, excluding the discount embedded in the purchase price that is attributable to the acquirer’s assessment of credit losses at acquisition. Currently, credit losses for purchased credit-impaired assets are included in the initial basis of the assets with subsequent declines in credit resulting in expense while subsequent improvements in credit are reflected as an increase in the future yield from the assets.

The provisions of ASU 2016-13 will be generally adopted through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in the year of adoption. Prospective implementation is required for debt securities for which an other-than-temporary-impairment (“OTTI”) had been previously recognized. Amounts previously recognized in accumulated other comprehensive income (“AOCI”) as of the date of adoption that relate to improvements in cash flows expected to be collected will continue to be accreted into income over the remaining life of the asset. Recoveries of amounts previously written off relating to improvements in cash flows after the date of adoption will be recorded in earnings when received. A prospective transition approach will be used for existing PCD assets where, upon adoption, the amortized cost basis will be adjusted to reflect the addition of the allowance for credit losses. Thus, an entity will not be required to reassess its purchased financial assets that exist as of the date of adoption to determine whether they would have met at acquisition the new criteria of more-than-insignificant credit deterioration since origination. An entity will accrete the remaining noncredit discount (based on the revised amortized cost basis) into interest income at the effective interest rate at the adoption date.

ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted in fiscal years beginning after December 15, 2018. FHN is still evaluating the impact of ASU 2016-13 on its current accounting and disclosure practices.

In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments,” which clarifies multiple cash flow presentation issues including providing guidance as to classification on the cash flow statement for certain cash receipts and cash payments where diversity in practice exists. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The provisions of ASU 2016-15 will be applied retroactively and will result in proceeds from bank-owned life insurance (“BOLI”) being classified as an investing activity rather than their prior classification as an operating activity.

In March 2017, the FASB issued ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” which requires the disaggregation of the service cost component from the other components of net benefit cost for pension and postretirement plans.Service cost must be included in the same income statement line item as other compensation-related expenses. All other components of net benefit cost are required to be presented in the income statement separately from the service cost component, with disclosure of the line items where these amounts are recorded.The presentation requirements of ASU 2017-07 must be applied retrospectively and adoption is required for annual periods beginning after December 15, 2017, including interim periods within those annual periods. FHN’s disclosures for pension and postretirement costs provide details of the service cost and all other components for expenses recognized for its applicable benefit plans. These amounts are currently included in Employee compensation, incentives, and benefits expense in the Consolidated Condensed Statements of Income.Upon adoption of ASU 2017-07 FHN will reclassify the expense components other than service cost into All other expense and revise its disclosures accordingly.The amounts to be reclassified are presented in Note 11 - Pension, Savings, and Other Employee Benefits in this Quarterly Report on Form 10-Q for the quarter ended March 31, 2017 and in Note 18 - Pension, Savings, and Other Employee Benefits in Exhibit 13 to FHN’s Annual Report on Form 10-K for the year ended December 31, 2016.

In March 2017, the FASB issued ASU 2017-08, “Premium Amortization on PurchasedCallable Debt Securities” which shortens the amortization period for securities that have explicit, noncontingent call features that are callable at fixed prices and on preset dates. In contrast to the current requirement for premium amortization to extend to the contractual maturity date, ASU 2017-08 requires the premium to be amortized to the earliest call date. ASU 2017-08 does not change the amortization of discounts, which will continue to be amortized to maturity. The new guidance does not apply to debt securities where the prepayment date is not preset or the price is not known in advance, which includes debt securities that qualify for amortization based on estimated prepayment rates.ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 with early adoption permitted. Transition is accomplished through a cumulative-effect adjustment directly to retained earnings as of the beginning of the year of adoption. Based upon the current composition of its debt securities portfolios, FHN does not anticipate a significant effect upon adoption.

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Acquisitions and Divestitures

3 Months Ended

Mar. 31, 2017

Acquisitions and Divestitures [Abstract]

Acquisitions and Divestitures

Note 2 – Acquisitions and Divestitures

On May 4, 2017, FHN and Capital Bank Financial Corp. (“Capital Bank”) announced that they had entered into an agreement andplan of merger. Under the agreement FHN will acquire Capital Bank, which is headquartered in Charlotte, North Carolina, andreported approximately $10 billion of assets at March 31, 2017. At the time of announcement Capital Bank operated 193 branches inNorth and South Carolina, Tennessee, Florida and Virginia. Collectively, Capital Bank shareholders will receive approximately $411million in cash plus FHN common shares which are expected to represent approximately 29 percent of FHN's outstanding common sharesimmediately after consummation of the merger. The total transaction value, measured at the time of announcement, wasapproximately $2.2 billion. The agreement calls for two members of Capital Bank's board of directors to join FHN's board afterclosing. The transaction is expected to close in fourth quarter 2017, subject to regulatory approvals, approval by shareholders of FHNand of Capital Bank, and other customary conditions.

On April 3, 2017, FTN Financial acquired substantially all of the assets and assumed substantially all of the liabilities of Coastal Securities, Inc. (“Coastal”), a national leader in the trading, securitization, and analysis of Small Business Administration (“SBA”) loans, for approximately $130 million in cash. Coastal, which was based in Houston, TX, also traded United States Department of Agriculture (“USDA”) loans and fixed income products and provided municipal underwriting and advisory services to its clients. Coastal’s government-guaranteed loan products, combined with FTN Financial’s existing SBA trading activities, have established an additional major product sector for FTN Financial.

On September 16, 2016, FTBNA acquired $537.4 million in unpaid principal balance (“UPB”) of restaurant franchise loans from GE Capital’s Southeast and Southwest regional portfolios. Subsequent to the acquisition the acquired loans were combined with existing FTBNA relationships to establish a franchise finance specialty banking business.

In addition to the transactions mentioned above, FHN acquires or divests assets from time to time in transactions that are considered business combination or divestitures but are not material to FHN individually or in the aggregate.

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Investment Securities

3 Months Ended

Mar. 31, 2017

Investment Securities [Abstract]

Investment Securities

Note 3 – Investment Securities

The following tables summarize FHN’s investment securities on March 31, 2017 and December 31, 2016:
	March 31, 2017
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
(Dollars in thousands)	Cost		Gains		Losses		Value
Securities available-for-sale:
U.S. treasuries	$	100	$	-	$	-	$	100
Government agency issued mortgage-backed securities ("MBS")		2,171,843		13,675		(25,596)		2,159,922
Government agency issued collateralized mortgage obligations ("CMO")		1,610,857		4,980		(23,526)		1,592,311
Equity and other (a)		186,948		-		(3)		186,945
Total securities available-for-sale (b)	$	3,969,748	$	18,655	$	(49,125)	$	3,939,278
Securities held-to-maturity:
States and municipalities	$	4,354	$	386	$	-	$	4,740
Corporate bonds		10,000		63		-		10,063
Total securities held-to-maturity	$	14,354	$	449	$	-	$	14,803

• Includes restricted investments in FHLB-Cincinnati stock of $87.9million and FRB stock of $68.6million. The remainder is money market, mutual funds, and cost method investments.
• Includes $3.5billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes.

	December 31, 2016
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
(Dollars in thousands)	Cost		Gains		Losses		Value
Securities available-for-sale:
U.S. treasuries	$	100	$	-	$	-	$	100
Government agency issued MBS		2,217,593		14,960		(23,866)		2,208,687
Government agency issued CMO		1,566,986		4,909		(23,937)		1,547,958
Equity and other (a)		186,756		-		(2)		186,754
Total securities available-for-sale (b)	$	3,971,435	$	19,869	$	(47,805)	$	3,943,499
Securities held-to-maturity:
States and municipalities	$	4,347	$	393	$	-	$	4,740
Corporate bonds		10,000		33		-		10,033
Total securities held-to-maturity	$	14,347	$	426	$	-	$	14,773

• Includes restricted investments in FHLB-Cincinnati stock of $87.9 million and FRB stock of $68.6million. The remainder is money market, mutual funds, and cost method investments.
• Includes $3.3 billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes.

The amortized cost and fair value by contractual maturity for the available-for-sale and held-to-maturity securities portfolios on March 31, 2017 are provided below:
		Held-to-Maturity				Available-for-Sale
		Amortized		Fair		Amortized		Fair
(Dollars in thousands)		Cost		Value		Cost		Value
Within 1 year		$	-	$	-	$	100	$	100
After 1 year; within 5 years			-		-		-		-
After 5 years; within 10 years			10,000		10,063		-		-
After 10 years			4,354		4,740		-		-
	Subtotal		14,354		14,803		100		100
Government agency issued MBS and CMO (a)			-		-		3,782,700		3,752,233
Equity and other			-		-		186,948		186,945
Total		$	14,354	$	14,803	$	3,969,748	$	3,939,278

Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

The table below provides information on gross gains and gross losses from investment securities for the three months ended March 31:
	Available-for-sale
(Dollars in thousands)	2017		2016
Gross gains on sales of securities	$	44	$	3,837
Gross (losses) on sales of securities		-		(2,263)
Net gain/(loss) on sales of securities (a)	$	44	$	1,574

Cash proceeds for the three months ended March 31, 2017 were not material. Cash proceeds for the three months ended March 31, 2016 were $1.0 million. 2016 includes a $1.7 million gain from an exchange of approximately $294 million of AFS debt securities.

The following tables provide information on investments within the available-for-sale portfolio that had unrealized losses as of March 31, 2017 and December 31, 2016:
	As of March 31, 2017
	Less than 12 months				12 months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Losses		Value		Losses		Value		Losses
Government agency issued CMO	$	1,068,010	$	(18,525)	$	111,813	$	(5,001)	$	1,179,823	$	(23,526)
Government agency issued MBS		1,846,348		(25,596)		-		-		1,846,348		(25,596)
Total debt securities		2,914,358		(44,121)		111,813		(5,001)		3,026,171		(49,122)
Equity		6		(3)		-		-		6		(3)
Total temporarily impaired securities	$	2,914,364	$	(44,124)	$	111,813	$	(5,001)	$	3,026,177	$	(49,125)

	As of December 31, 2016
	Less than 12 months				12 months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Losses		Value		Losses		Value		Losses
Government agency issued CMO	$	1,059,471	$	(19,052)	$	116,527	$	(4,885)	$	1,175,998	$	(23,937)
Government agency issued MBS		1,912,126		(23,866)		-		-		1,912,126		(23,866)
Total debt securities		2,971,597		(42,918)		116,527		(4,885)		3,088,124		(47,803)
Equity		7		(2)		-		-		7		(2)
Total temporarily impaired securities	$	2,971,604	$	(42,920)	$	116,527	$	(4,885)	$	3,088,131	$	(47,805)

FHN has reviewed investment securities that were in unrealized loss positions in accordance with its accounting policy for OTTI and does not consider them other-than-temporarily impaired. For debt securities with unrealized losses, FHN does not intend to sell them and it is more-likely-than-not that FHN will not be required to sell them prior to recovery. The decline in value is primarily attributable to changes in interest rates and not credit losses. For equity securities, FHN has both the ability and intent to hold these securities for the time necessary to recover the amortized cost.

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Loans

3 Months Ended

Mar. 31, 2017

Loans [Abstract]

Loans

Note 4 – Loans

The following table provides the balance of loans by portfolio segment as of March 31, 2017 and December 31, 2016:
		March 31		December 31
(Dollars in thousands)		2017		2016
Commercial:
	Commercial, financial, and industrial	$	11,703,996	$	12,148,087
	Commercial real estate		2,173,311		2,135,523
Consumer:
	Consumer real estate (a)		4,456,811		4,523,752
	Permanent mortgage		409,235		423,125
	Credit card & other		346,721		359,033
Loans, net of unearned income		$	19,090,074	$	19,589,520
Allowance for loan losses			201,968		202,068
Total net loans		$	18,888,106	$	19,387,452

Balances as of March 31, 2017 and December 31, 2016, include $32.5 million and $35.9 million of restricted real estate loans, respectively. See Note 13 - Variable Interest Entities for additional information.

COMPONENTS OF THE LOAN PORTFOLIO

The loan portfolio is disaggregated into segments and then further disaggregated into classes for certain disclosures. GAAP defines a portfolio segment as the level at which an entity develops and documents a systematic method for determining its allowance for credit losses. A class is generally determined based on the initial measurement attribute (i.e., amortized cost or purchased credit-impaired), risk characteristics of the loan, and FHN’s method for monitoring and assessing credit risk. Commercial loan portfolio segments include commercial, financial and industrial ("C&I") and commercial real estate("CRE"). Commercial classes within C&I include general C&I, loans to mortgage companies, the trust preferred loans ("TRUPS") (i.e. long-term unsecured loans to bank and insurance - related businesses) portfolio and purchased credit-impaired (“PCI”) loans. Loans to mortgage companies include commercial lines of credit to qualified mortgage companies primarily for the temporary warehousing of eligible mortgage loans prior to the borrower’s sale of those mortgage loans to third party investors. Commercial classes within CRE include income CRE, residential CRE and PCI loans. Consumer loan portfolio segments include consumer real estate, permanent mortgage, and the credit card and other portfolio. Consumer classes include home equity lines of credit (“HELOCs”), real estate ("R/E") installment and PCI loans within the consumer real estate segment, permanent mortgage (which is both a segment and a class), and credit card and other.

Concentrations

FHN has a concentration of residential real estate loans (25 percent of total loans), the majority of which is in the consumer real estate segment (23 percent of total loans). Loans to finance and insurance companies total $2.6 billion (22 percent of the C&I portfolio, or 13 percent of the total loans). FHN had loans to mortgage companies totaling $1.5 billion (13 percent of the C&I segment, or 8 percent of total loans) as of March 31, 2017. As a result, 35 percent of the C&I segment is sensitive to impacts on the financial services industry.

Purchased Credit-Impaired Loans

The following table presents a rollforward of the accretable yield for the three months ended March 31, 2017 and 2016:
		Three Months Ended
		March 31
(Dollars in thousands)		2017		2016
Balance, beginning of period	$	6,871	$	8,542
Accretion		(851)		(1,151)
Adjustment for payoffs		(273)		(1,777)
Adjustment for charge-offs		-		(663)
Adjustment for pool excess recovery (a)		(222)		-
Increase/(decrease) in accretable yield (b)		(295)		4,007
Other		(32)		-
Balance, end of period	$	5,198	$	8,958

• Represents the removal of accretable difference for the remaining loans in a pool which is now in a recovery state.
• Includes changes in the accretable yield due to both transfers from the nonaccretable difference and the impact of changes in the expected timing of the cash flows.

At March 31, 2017, the ALLL related to PCI loans was $.6 million compared to $.7 million at December 31, 2016. The loan loss provision amounts related to PCI loans recognized during the three months ended March 31, 2017, and 2016, respectively, were not significant.

The following table reflects the outstanding principal balance and carrying amounts of the acquired PCI loans as of March 31, 2017 and December 31, 2016:
	March 31, 2017				December 31, 2016
(Dollars in thousands)	Carrying value		Unpaid balance		Carrying value		Unpaid balance
Commercial, financial and industrial	$	38,088	$	39,257	$	40,368	$	41,608
Commercial real estate		4,096		5,466		4,763		6,514
Consumer real estate		1,072		1,442		1,172		1,677
Credit card and other		53		64		52		64
Total	$	43,309	$	46,229	$	46,355	$	49,863

Impaired Loans

The following tables provide information at March 31, 2017 and December 31, 2016, by class related to individually impaired loans and consumer TDRs, regardless of accrual status. Recorded investment is defined as the amount of the investment in a loan, before valuation allowance but which does reflect any direct write-down of the investment. For purposes of this disclosure, PCI loans and the TRUPs valuation allowance have been excluded.
								Three Months Ended March 31
		March 31, 2017
								2017				2016
				Unpaid				Average		Interest		Average		Interest
		Recorded		Principal		Related		Recorded		Income		Recorded		Income
(Dollars in thousands)		Investment		Balance		Allowance		Investment		Recognized		Investment		Recognized
Impaired loans with no related allowance recorded:
Commercial:
	General C&I	$	10,395	$	16,612	$	-	$	10,407	$	-	$	9,224	$	-
	Income CRE		-		-		-		-		-		2,468		-
	Total	$	10,395	$	16,612	$	-	$	10,407	$	-	$	11,692	$	-
Consumer:
	HELOC (a)	$	10,724	$	22,020	$	-	$	11,054	$	-	$	10,921	$	-
	R/E installment loans (a)		3,916		4,987		-		3,937		-		4,434		-
	Permanent mortgage (a)		5,803		8,607		-		5,557		-		4,436		-
	Total	$	20,443	$	35,614	$	-	$	20,548	$	-	$	19,791	$	-
Impaired loans with related allowance recorded:
Commercial:
	General C&I	$	31,392	$	31,532	$	2,850	$	32,863	$	215	$	24,921	$	87
	TRUPS		3,183		3,700		925		3,196		-		3,323		-
	Income CRE		1,803		2,181		61		1,817		14		5,138		20
	Residential CRE		1,293		1,761		131		1,293		5		1,397		6
	Total	$	37,671	$	39,174	$	3,967	$	39,169	$	234	$	34,779	$	113
Consumer:
	HELOC	$	81,438	$	83,888	$	16,641	$	83,075	$	564	$	88,580	$	487
	R/E installment loans		50,394		51,317		12,060		51,902		318		59,971		317
	Permanent mortgage		82,940		94,755		11,532		85,778		615		95,232		547
	Credit card & other		269		269		122		288		2		360		3
	Total	$	215,041	$	230,229	$	40,355	$	221,043	$	1,499	$	244,143	$	1,354
Total commercial		$	48,066	$	55,786	$	3,967	$	49,576	$	234	$	46,471	$	113
Total consumer		$	235,484	$	265,843	$	40,355	$	241,591	$	1,499	$	263,934	$	1,354
Total impaired loans		$	283,550	$	321,629	$	44,322	$	291,167	$	1,733	$	310,405	$	1,467

All discharged bankruptcy loans are charged down to an estimate of net realizable value and do not carry any allowance.

		December 31, 2016
				Unpaid				Average			Interest
		Recorded		Principal		Related		Recorded			Income
(Dollars in thousands)		Investment		Balance		Allowance			Investment		Recognized
Impaired loans with no related allowance recorded:
Commercial:
	General C&I	$	10,419	$	16,636	$	-		$	12,009	$	-
	Income CRE		-		-		-			1,543		-
	Total	$	10,419	$	16,636	$	-		$	13,552	$	-
Consumer:
	HELOC (a)	$	11,383	$	21,662	$	-		$	11,168	$	-
	R/E installment loans (a)		3,957		4,992		-			4,255		-
	Permanent mortgage (a)		5,311		7,899		-			4,418		-
	Total	$	20,651	$	34,553	$	-		$	19,841	$	-
Impaired loans with related allowance recorded:
Commercial:
	General C&I	$	34,334	$	34,470	$	3,294		$	30,836	$	902
	TRUPS		3,209		3,700		925			3,274		-
	Income CRE		1,831		2,209		62			3,757		70
	Residential CRE		1,293		1,761		132			1,360		22
	Total	$	40,667	$	42,140	$	4,413		$	39,227	$	994
Consumer:
	HELOC	$	84,711	$	87,126	$	15,927		$	87,659	$	2,092
	R/E installment loans		53,409		54,559		12,875			57,906		1,370
	Permanent mortgage		88,615		100,983		12,470			91,838		2,310
	Credit card & other		306		306		133			345		13
	Total	$	227,041	$	242,974	$	41,405		$	237,748	$	5,785
Total commercial		$	51,086	$	58,776	$	4,413		$	52,779	$	994
Total consumer		$	247,692	$	277,527	$	41,405		$	257,589	$	5,785
Total impaired loans		$	298,778	$	336,303	$	45,818		$	310,368	$	6,779

All discharged bankruptcy loans are charged down to an estimate of net realizable value and do not carry any allowance.

Asset Quality Indicators

FHN employs a dual grade commercial risk grading methodology to assign an estimate for theprobability of default ("PD") and the loss given default ("LGD") for each commercial loan using factors specific to various industry, portfolio, or product segments that result in a rank ordering of risk and the assignment of grades PD 1 to PD 16. This credit grading system is intended to identify and measure the credit quality of the loan portfolio by analyzing the migration of loans between grading categories. It is also integral to the estimation methodology utilized in determining the allowance for loan losses since an allowance is established for pools of commercial loans based on the credit grade assigned.Each PD grade corresponds to an estimated one-year default probability percentage; a PD 1 has the lowest expected default probability, and probabilities increase as grades progress down the scale. PD 1 through PD 12 are “pass” grades. PD grades 13-16 correspond to the regulatory-defined categories of special mention (13), substandard (14), doubtful (15), and loss (16). Pass loan grades are required to be reassessed annually or earlier whenever there has been a material change in the financial condition of the borrower or risk characteristics of the relationship. All commercial loans over $1 million and certain commercial loans over $500,000 that are graded 13 or worse are reassessed on a quarterly basis. Loan grading discipline is regularly reviewed internally by Credit Assurance Services to determine if the process continues to result in accurate loan grading across the portfolio. FHN may utilize availability of guarantors/sponsors to support lending decisions during the credit underwriting process and when determining the assignment of internal loan grades. LGD grades are assigned based on a scale of 1-12 and represent FHN’s expected recovery based on collateral type in the event a loan defaults. See Note 5 – Allowance for Loan Losses for further discussion on the credit grading system.

The following tables provide the balances of commercial loan portfolio classes with associated allowance, disaggregated by PD grade as of March 31, 2017 and December 31, 2016:
	March 31, 2017
			Loans to												Allowance
	General		Mortgage				Income		Residential				Percentage		for Loan
(Dollars in thousands)	C&I		Companies		TRUPS (a)		CRE		CRE		Total		of Total		Losses
PD Grade:
1	$	478,025	$	-	$	-	$	610	$	-	$	478,635	3	%	$	78
2		891,450		-		-		11,293		81		902,824	7			442
3		403,403		398,860		-		160,115		-		962,378	7			239
4		998,015		227,257		-		242,069		221		1,467,562	11			879
5		1,269,384		139,434		-		426,147		333		1,835,298	13			7,260
6		1,535,573		521,253		-		368,073		8,072		2,432,971	17			10,600
7		1,479,242		169,444		-		396,654		2,161		2,047,501	15			12,767
8		1,042,772		49,588		-		352,370		4,383		1,449,113	10			24,532
9		641,463		4,643		-		82,734		3,357		732,197	5			14,396
10		344,633		4,499		-		35,489		9,695		394,316	3			8,510
11		228,258		-		-		17,501		5,454		251,213	2			6,289
12		162,238		13,956		-		15,831		2,965		194,990	1			6,862
13		115,844		-		304,236		4,755		128		424,963	3			3,757
14,15,16		197,230		48		-		14,395		1,183		212,856	2			23,177
Collectively evaluated for impairment		9,787,530		1,528,982		304,236		2,128,036		38,033		13,786,817	99			119,788
Individually evaluated for impairment		41,787		-		3,183		1,803		1,293		48,066	1			3,967
Purchased credit-impaired loans		38,278		-		-		4,052		94		42,424	-			240
Total commercial loans	$	9,867,595	$	1,528,982	$	307,419	$	2,133,891	$	39,420	$	13,877,307	100	%	$	123,995

	December 31, 2016
			Loans to												Allowance
	General		Mortgage				Income		Residential				Percentage		for Loan
(Dollars in thousands)	C&I		Companies		TRUPS (a)		CRE		CRE		Total		of Total		Losses
PD Grade:
1	$	465,179	$	-	$	-	$	1,078	$	-	$	466,257	3	%	$	77
2		791,183		-		-		11,742		87		803,012	6			403
3		491,386		462,486		-		153,670		-		1,107,542	8			304
4		978,282		332,107		-		222,422		-		1,532,811	11			953
5		1,232,401		275,209		-		365,653		702		1,873,965	13			6,670
6		1,540,519		614,109		-		338,344		9,338		2,502,310	17			10,403
7		1,556,117		317,283		-		352,390		2,579		2,228,369	16			14,010
8		963,359		30,974		-		425,503		2,950		1,422,786	10			25,986
9		611,774		4,299		-		105,277		4,417		725,767	5			13,857
10		355,359		8,663		-		50,484		9,110		423,616	3			8,400
11		238,230		-		-		20,600		6,541		265,371	2			6,556
12		170,531		-		-		15,395		4,168		190,094	1			6,377
13		121,276		-		304,236		6,748		311		432,571	3			4,225
14,15,16		194,572		59		-		16,313		1,659		212,603	1			20,297
Collectively evaluated for impairment		9,710,168		2,045,189		304,236		2,085,619		41,862		14,187,074	99			118,518
Individually evaluated for impairment		44,753		-		3,209		1,831		1,293		51,086	1			4,413
Purchased credit-impaired loans		40,532		-		-		4,583		335		45,450	-			319
Total commercial loans	$	9,795,453	$	2,045,189	$	307,445	$	2,092,033	$	43,490	$	14,283,610	100	%	$	123,250

Balances as of March 31, 2017 and December 31, 2016, presented net of a $25.5 million valuation allowance. Based on the underlying structure of the notes, the highest possible internal grade is "13".

The consumer portfolio is comprised primarily of smaller-balance loans which are very similar in nature in that most are standard products and are backed by residential real estate. Because of the similarities of consumer loan-types, FHN is able to utilize the Fair Isaac Corporation (“FICO”) score, among other attributes, to assess the credit quality of consumer borrowers. FICO scores are refreshed on a quarterly basis in an attempt to reflect the recent risk profile of the borrowers. Accruing delinquency amounts are indicators of asset quality within the credit card and other consumer portfolio.

The following table reflects the percentage of balances outstanding by average, refreshed FICO scores for the HELOC, real estate installment, and permanent mortgage classes of loans as of March 31, 2017 and December 31, 2016:
	March 31, 2017						December 31, 2016
	HELOC		R/E Installment Loans		Permanent Mortgage		HELOC		R/E Installment Loans		Permanent Mortgage
FICO score 740 or greater	57.6	%	70.1	%	45.5	%	56.9	%	70.3	%	45.0	%
FICO score 720-739	8.8		8.0		8.7		8.8		8.3		9.5
FICO score 700-719	8.2		7.2		9.5		8.6		6.8		9.2
FICO score 660-699	12.6		9.0		16.8		13.2		8.4		17.1
FICO score 620-659	5.7		3.0		8.9		5.6		3.5		9.1
FICO score less than 620 (a)	7.1		2.7		10.6		6.9		2.7		10.1
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

For this group, a majority of the loan balances had FICO scores at the time of the origination that exceeded 620 but have since deteriorated as the loans have seasoned.

Nonaccrual and Past Due Loans

The following table reflects accruing and non-accruing loans by class on March 31, 2017:
	Accruing								Non-Accruing
			30-89		90+						30-89		90+		Total
			Days		Days		Total				Days		Days		Non-		Total
(Dollars in thousands)	Current		Past Due		Past Due		Accruing		Current		Past Due		Past Due		Accruing		Loans
Commercial (C&I):
General C&I	$	9,781,688	$	20,073	$	101	$	9,801,862	$	14,511	$	113	$	12,831	$	27,455	$	9,829,317
Loans to mortgage companies		1,528,934		-		-		1,528,934		-		-		48		48		1,528,982
TRUPS (a)		304,236		-		-		304,236		-		-		3,183		3,183		307,419
Purchased credit-impaired loans		38,045		8		225		38,278		-		-		-		-		38,278
Total commercial (C&I)		11,652,903		20,081		326		11,673,310		14,511		113		16,062		30,686		11,703,996
Commercial real estate:
Income CRE		2,128,111		128		-		2,128,239		100		-		1,500		1,600		2,129,839
Residential CRE		38,531		-		-		38,531		-		-		795		795		39,326
Purchased credit-impaired loans		3,605		541		-		4,146		-		-		-		-		4,146
Total commercial real estate		2,170,247		669		-		2,170,916		100		-		2,295		2,395		2,173,311
Consumer real estate:
HELOC		1,521,042		16,612		10,247		1,547,901		46,661		4,187		8,345		59,193		1,607,094
R/E installment loans		2,814,663		7,056		4,427		2,826,146		17,477		1,993		2,679		22,149		2,848,295
Purchased credit-impaired loans		1,328		-		94		1,422		-		-		-		-		1,422
Total consumer real estate		4,337,033		23,668		14,768		4,375,469		64,138		6,180		11,024		81,342		4,456,811
Permanent mortgage		369,882		4,802		5,718		380,402		14,166		1,006		13,661		28,833		409,235
Credit card & other:
Credit card		182,129		1,393		1,449		184,971		-		-		-		-		184,971
Other		160,929		482		150		161,561		-		-		136		136		161,697
Purchased credit-impaired loans		53		-		-		53		-		-		-		-		53
Total credit card & other		343,111		1,875		1,599		346,585		-		-		136		136		346,721
Total loans, net of unearned income	$	18,873,176	$	51,095	$	22,411	$	18,946,682	$	92,915	$	7,299	$	43,178	$	143,392	$	19,090,074

TRUPS is presented net of the valuation allowanceof $25.5 million.

The following table reflects accruing and non-accruing loans by class on December 31, 2016:
	Accruing								Non-Accruing
			30-89		90+						30-89		90+		Total
			Days		Days		Total				Days		Days		Non-		Total
(Dollars in thousands)	Current		Past Due		Past Due		Accruing		Current		Past Due		Past Due		Accruing		Loans
Commercial (C&I):
General C&I	$	9,720,231	$	5,199	$	23	$	9,725,453	$	16,106	$	374	$	12,988	$	29,468	$	9,754,921
Loans to mortgage companies		2,041,408		3,722		-		2,045,130		-		-		59		59		2,045,189
TRUPS (a)		304,236		-		-		304,236		-		-		3,209		3,209		307,445
Purchased credit-impaired loans		40,113		185		234		40,532		-		-		-		-		40,532
Total commercial (C&I)		12,105,988		9,106		257		12,115,351		16,106		374		16,256		32,736		12,148,087
Commercial real estate:
Income CRE		2,085,455		14		-		2,085,469		232		460		1,289		1,981		2,087,450
Residential CRE		42,182		178		-		42,360		-		-		795		795		43,155
Purchased credit-impaired loans		4,809		109		-		4,918		-		-		-		-		4,918
Total commercial real estate		2,132,446		301		-		2,132,747		232		460		2,084		2,776		2,135,523
Consumer real estate:
HELOC		1,602,640		17,997		10,859		1,631,496		46,964		4,201		8,922		60,087		1,691,583
R/E installment loans		2,794,866		7,844		5,158		2,807,868		17,989		2,383		2,353		22,725		2,830,593
Purchased credit-impaired loans		1,319		164		93		1,576		-		-		-		-		1,576
Total consumer real estate		4,398,825		26,005		16,110		4,440,940		64,953		6,584		11,275		82,812		4,523,752
Permanent mortgage		385,972		4,544		5,428		395,944		11,867		2,194		13,120		27,181		423,125
Credit card & other:
Credit card		188,573		1,622		1,456		191,651		-		-		-		-		191,651
Other		166,062		992		134		167,188		-		-		142		142		167,330
Purchased credit-impaired loans		52		-		-		52		-		-		-		-		52
Total credit card & other		354,687		2,614		1,590		358,891		-		-		142		142		359,033
Total loans, net of unearned income	$	19,377,918	$	42,570	$	23,385	$	19,443,873	$	93,158	$	9,612	$	42,877	$	145,647	$	19,589,520

TRUPS is presented net of the valuation allowance of $25.5 million.

Troubled Debt Restructurings

As part of FHN’s ongoing risk management practices, FHN attempts to work with borrowers when necessary to extend or modify loan terms to better align with their current ability to repay. Extensions and modifications to loans are made in accordance with internal policies and guidelines which conform to regulatory guidance. Each occurrence is unique to the borrower and is evaluated separately.

A modification is classified as a TDR if the borrower is experiencing financial difficulty and it is determined that FHN has granted a concession to the borrower. FHN may determine that a borrower is experiencing financial difficulty if the borrower is currently in default on any of its debt, or if it is probable that a borrower may default in the foreseeable future. Many aspects of a borrower’s financial situation are assessed when determining whether they are experiencing financial difficulty. Concessions could include extension of the maturity date, reductions of the interest rate (which may make the rate lower than current market for a new loan with similar risk), reduction or forgiveness of accrued interest, or principal forgiveness. The assessments of whether a borrower is experiencing (or is likely to experience) financial difficulty, and whether a concession has been granted, are subjective in nature and management’s judgment is required when determining whether a modification is classified as a TDR.

For all classes within the commercial portfolio segment, TDRs are typically modified through forbearance agreements (generally 6 to 12 months). Forbearance agreements could include reduced interest rates, reduced payments, release of guarantor, or entering into short sale agreements. FHN’s proprietary modification programs for consumer loans are generally structured using parameters of U.S. government-sponsored programs such as the former Home Affordable Modification Program (“HAMP”). Within the HELOC and R/E installment loans classes of the consumer portfolio segment, TDRs are typically modified by reducing the interest rate (in increments of 25 basis points to a minimum of 1 percent for up to 5 years) and a possible maturity date extension to reach an affordable housing debt-to-income ratio. After 5 years, the interest rate generally returns to the original interest rate prior to modification; for certain modifications, the modified interest rate increases 2 percent per year until the original interest rate prior to modification is achieved. Permanent mortgage TDRs are typically modified by reducing the interest rate (in increments of 25 basis points to a minimum of 2 percent forup to 5 years) and a possible maturity date extension to reach an affordable housing debt-to-income ratio. After 5 years, the interest rate steps up 1 percent every year until it reaches the Federal Home Loan Mortgage Corporation Weekly Survey Rate cap. Contractual maturities may be extended to 40 years on permanent mortgages and to 30 years for consumer real estate loans. Within the credit card class of the consumer portfolio segment, TDRs are typically modified through either a short-term credit card hardship program or a longer-term credit card workout program. In the credit card hardship program, borrowers may be granted rate and payment reductions for 6 months to 1 year. In the credit card workout program, customers are granted a rate reduction to 0 percent and term extensions for up to 5 years to pay off the remaining balance.

Despite the absence of a loan modification, the discharge of personal liability through bankruptcy proceedings is considered a concession. As a result, FHN classifies all non-reaffirmed residential real estate loans discharged in Chapter 7 bankruptcy as nonaccruing TDRs.

On March 31, 2017 and December 31, 2016, FHN had $270.0 million and $285.2 million of portfolio loans classified as TDRs, respectively. For TDRs in the loan portfolio, FHN had loan loss reserves of $43.4 million, or 16 percent as of March 31, 2017,and $44.9 million, or16 percent as of December 31, 2016. Additionally, $67.2 million and $69.3 million of loans held-for-sale as of March 31, 2017 and December 31, 2016, respectively, were classified as TDRs.

The following tables reflect portfolio loans that were classified as TDRs during the three months ended March 31, 2017 and 2016:
		March 31, 2017					March 31, 2016
			Pre-Modification		Post-Modification			Pre-Modification		Post-Modification
			Outstanding		Outstanding			Outstanding		Outstanding
(Dollars in thousands)		Number	Recorded Investment		Recorded Investment		Number	Recorded Investment		Recorded Investment
Commercial (C&I):
General C&I		1	$	27	$	37	1	$	708	$	708
	Total commercial (C&I)	1		27		37	1		708		708
Consumer real estate:
HELOC		35		2,589		2,473	99		7,440		7,370
R/E installment loans		14		957		902	15		898		895
	Total consumer real estate	49		3,546		3,375	114		8,338		8,265
Permanent mortgage		5		1,310		1,303	-		-		-
Credit card & other		6		21		20	4		19		18
Total troubled debt restructurings		61	$	4,904	$	4,735	119	$	9,065	$	8,991

The following tables present TDRs which re-defaulted during the three months ended March 31, 2017 and 2016, and as to which the modification occurred 12 months or less prior to the re-default. For purposes of this disclosure, FHN generally defines payment default as 30 or more days past due.
		March 31, 2017			March 31, 2016
			Recorded			Recorded
(Dollars in thousands)		Number	Investment		Number	Investment
Commercial (C&I):
General C&I		1	$	5,779	-	$	-
	Total commercial (C&I)	1		5,779	-		-
Consumer real estate:
HELOC		4		685	1		36
	Total consumer real estate	4		685	1		36
Credit card & other		2		7	-		-
Total troubled debt restructurings		7	$	6,471	1	$	36

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Allowance for Loan Losses

3 Months Ended

Mar. 31, 2017

Loans [Abstract]

Allowance

Note 5 - Allowance for Loan Losses

The ALLLincludes the following components: reserves for commercial loans evaluated based on pools of credit graded loans and reserves for pools of smaller-balance homogeneous consumer loans, both determined in accordance with ASC 450-20-50. The reserve factors applied to these pools are an estimate of probable incurred losses based on management’s evaluation of historical net losses from loans with similar characteristics and are subject to qualitative adjustments by management to reflect current events, trends, and conditions (including economic considerations and trends). The current economic conditions and trends, performance of the housing market, unemployment levels, labor participation rate, regulatory guidance, and both positive and negative portfolio segment-specific trends, are examples of additional factors considered by management in determining the ALLL. Additionally, management considers the inherent uncertainty of quantitative models that are driven by historical loss data. Management evaluates the periods of historical losses that are the basis for the loss rates used in the quantitative models and selects historical loss periods that are believed to be the most reflective of losses inherent in the loan portfolio as of the balance sheet date. Management also periodically reviews analysis of the loss emergence period which is the amount of time it takes for a loss to be confirmed (initial charge-off) after a loss event has occurred. FHN performs extensive studies as it relates to the historical loss periods used in the model and the loss emergence period and model assumptions are adjusted accordingly. The ALLL also includes reserves determined in accordance with ASC 310-10-35 for loans determined by management to be individually impaired and an allowance associated with PCI loans. See Note 1 – Summary of Significant Accounting Policies and Note 5 - Allowance for Loan Losses in the Notes to Consolidated Financial Statements on FHN’s Form 10-K for the year ended December 31, 2016, for additional information about the policies and methodologies used in the aforementioned components of the ALLL.

The following table provides a rollforward of the allowance for loan losses by portfolio segment for the three months ended March 31, 2017 and 2016:
				Commercial		Consumer		Permanent		Credit Card
(Dollars in thousands)		C&I		Real Estate		Real Estate		Mortgage		and Other		Total
Balance as of January 1, 2017		$	89,398	$	33,852	$	50,357	$	16,289	$	12,172	$	202,068
Charge-offs			(600)		-		(3,849)		(483)		(3,481)		(8,413)
Recoveries			1,676		221		5,676		903		837		9,313
Provision/(provision credit) for loan losses			2,633		(3,185)		(2,504)		(816)		2,872		(1,000)
Balance as of March 31, 2017			93,107		30,888		49,680		15,893		12,400		201,968
Allowance - individually evaluated for impairment			3,775		192		28,701		11,532		122		44,322
Allowance - collectively evaluated for impairment			89,142		30,646		20,629		4,361		12,278		157,056
Allowance - purchased credit-impaired loans			190		50		350		-		-		590
Loans, net of unearned as of March 31, 2017:
	Individually evaluated for impairment		44,970		3,096		146,472		88,743		269		283,550
	Collectively evaluated for impairment		11,620,748		2,166,069		4,308,917		320,492		346,399		18,762,625
	Purchased credit-impaired loans		38,278		4,146		1,422		-		53		43,899
Total loans, net of unearned income		$	11,703,996	$	2,173,311	$	4,456,811	$	409,235	$	346,721	$	19,090,074
Balance as of January 1, 2016		$	73,637	$	25,159	$	80,614	$	18,947	$	11,885	$	210,242
Charge-offs			(6,525)		(642)		(6,926)		(112)		(3,407)		(17,612)
Recoveries			780		222		5,735		779		888		8,404
Provision/(provision credit) for loan losses			12,995		887		(12,102)		(860)		2,080		3,000
Balance as of March 31, 2016			80,887		25,626		67,321		18,754		11,446		204,034
Allowance - individually evaluated for impairment			9,148		488		31,119		16,975		146		57,876
Allowance - collectively evaluated for impairment			71,615		24,840		35,477		1,779		11,299		145,010
Allowance - purchased credit-impaired loans			124		298		725		-		1		1,148
Loans, net of unearned as of March 31, 2016:
	Individually evaluated for impairment		44,465		8,950		162,128		96,874		345		312,762
	Collectively evaluated for impairment		10,181,677		1,826,677		4,523,885		345,917		353,822		17,231,978
	Purchased credit-impaired loans		13,041		12,942		4,217		-		54		30,254
Total loans, net of unearned income		$	10,239,183	$	1,848,569	$	4,690,230	$	442,791	$	354,221	$	17,574,994

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Intangible Assets

3 Months Ended

Mar. 31, 2017

Goodwill And Intangible Assets Disclosure [Abstract]

Intangible Assets

Note 6 – Intangible Assets

The following is a summary of other intangible assets included in the Consolidated Condensed Statements of Condition:
	March 31, 2017						December 31, 2016
(Dollars in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Value		Gross Carrying Amount		Accumulated Amortization		Net Carrying Value
Core deposit intangibles	$	16,850	$	(5,199)	$	11,651	$	16,850	$	(4,721)	$	12,129
Customer lists		54,865		(47,053)		7,812		54,865		(46,302)		8,563
Other (a)		322		-		322		555		(230)		325
Total	$	72,037	$	(52,252)	$	19,785	$	72,270	$	(51,253)	$	21,017

Balance at March 31, 2017 relates to state banking licenses and are not subject to amortization.

Amortization expense was $1.2 million and $1.3 million for the three months ended March 31, 2017 and 2016, respectively. As of March 31, 2017 the estimated aggregated amortization expense is expected to be

(Dollars in thousands)
Year	Amortization
Remainder of 2017		$	3,683
2018			4,679
2019			4,453
2020			1,659
2021			1,574
2022			1,450

Gross goodwill, accumulated impairments, and accumulated divestiture related write-offs were determined beginning January 1, 2012, when a change in accounting requirements resulted in goodwill being assessed for impairment rather than being amortized. Gross goodwill of $200.0 million with accumulated impairments and accumulated divestiture-related write-offs of $114.1 million and $85.9 million, respectively, were previously allocated to the non-strategic segment, resulting in $0 net goodwill allocated to the non-strategic segment as of March 31, 2017 and December 31, 2016. The regional banking and fixed income segments do not have any accumulated impairments or divestiture related write-offs. The following is a summary of goodwill by reportable segment included in the Consolidated Condensed Statements of Condition as of March 31, 2017 and December 31, 2016.

		Regional		Fixed
(Dollars in thousands)		Banking		Income		Total
December 31, 2015		$	93,303	$	98,004	$	191,307
	Additions		-		-		-
March 31, 2016		$	93,303	$	98,004	$	191,307
December 31, 2016		$	93,367	$	98,004	$	191,371
	Additions		-		-		-
March 31, 2017		$	93,367	$	98,004	$	191,371

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Other Income And Other Expense

3 Months Ended

Mar. 31, 2017

Other Income And Other Expense [Abstract]

Other Income And Other Expense

Note 7 – Other Income and Other Expense

Following is detail of All other income and commissions and All other expense as presented in the Consolidated Condensed Statements of Income:
	Three Months Ended
	March 31
(Dollars in thousands)	2017		2016
All other income and commissions:
Other service charges	$	2,984	$	2,713
ATM interchange fees		2,778		2,958
Deferred compensation		1,827		329
Electronic banking fees		1,323		1,397
Mortgage banking		1,261		1,273
Letter of credit fees		1,036		1,061
Insurance commissions		883		487
Other		2,299		3,071
Total	$	14,391	$	13,289
All other expense:
Other insurance and taxes	$	2,390	$	3,313
Travel and entertainment		2,348		2,062
Employee training and dues		1,543		1,390
Customer relations		1,336		1,879
Tax credit investments		942		706
Supplies		863		1,026
Miscellaneous loan costs		622		717
Foreclosed real estate		204		(258)
Litigation and regulatory matters		(292)		(475)
Other		8,831		11,719
Total	$	18,787	$	22,079

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Components of Other Comprehensive Income/(Loss)

3 Months Ended

Mar. 31, 2017

Disclosure Text Block [Abstract]

Components of Other Comprehensive Income/(Loss) [Text Block]

Note 8 – Components of Other Comprehensive Income/(loss)

The following table provides the changes in accumulated other comprehensive income/(loss) by component, net of tax, for the three months ended March 31, 2017 and 2016:
(Dollars in thousands)		Securities AFS			Cash Flow Hedges	Pension and Post-retirement Plans		Total
Balance as of January 1, 2017		$	(17,232)	$	(1,265)	$	(229,157)	$	(247,654)
	Net unrealized gains/(losses)		(1,536)		(1,062)		-		(2,598)
	Amounts reclassified from AOCI		(27)		(852)		1,173		294
	Other comprehensive income/(loss)		(1,563)		(1,914)		1,173		(2,304)
Balance as of March 31, 2017		$	(18,795)	$	(3,179)	$	(227,984)	$	(249,958)
Balance as of January 1, 2016		$	3,394	$	-	$	(217,586)	$	(214,192)
	Net unrealized gains/(losses)		40,180		3,839		-		44,019
	Amounts reclassified from AOCI		(1,020)		(374)		1,126		(268)
	Other comprehensive income/(loss)		39,160		3,465		1,126		43,751
Balance as of March 31, 2016		$	42,554	$	3,465	$	(216,460)	$	(170,441)

Reclassifications from AOCI, and related tax effects, were as follows:
(Dollars in thousands)		Three Months Ended March 31
Details about AOCI		2017		2016		Affected line item in the statement where net income is presented
Securities AFS:
	Realized (gains)/losses on securities AFS	$	(44)	$	(1,654)	Debt securities gains/(losses), net
	Tax expense/(benefit)		17		634	Provision/(benefit) for income taxes
			(27)		(1,020)
Cash flow hedges:
	Realized (gains)/losses on cash flow hedges		(1,380)		(606)	Interest and fees on loans
	Tax expense/(benefit)		528		232	Provision/(benefit) for income taxes
			(852)		(374)
Pension and Postretirement Plans:
	Amortization of prior service cost and net actuarial gain/(loss)		1,900		1,826	Employee compensation, incentives, and benefits
	Tax expense/(benefit)		(727)		(700)	Provision/(benefit) for income taxes
			1,173		1,126
Total reclassification from AOCI		$	294	$	(268)

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Earnings Per Share

3 Months Ended

Mar. 31, 2017

Earnings Per Share [Abstract]

Earnings Per Share

Note 9 – Earnings Per Share

The following table provides reconciliations of net income to net income available to common shareholders and the difference between average basic common shares outstanding and average diluted common shares outstanding:
	Three Months Ended
	March 31
(Dollars and shares in thousands, except per share data)	2017		2016
Net income/(loss)	$	58,388	$	52,213
Net income attributable to noncontrolling interest		2,820		2,851
Net income/(loss) attributable to controlling interest		55,568		49,362
Preferred stock dividends		1,550		1,550
Net income/(loss) available to common shareholders	$	54,018	$	47,812
Weighted average common shares outstanding - basic		233,076		234,651
Effect of dilutive securities		3,779		2,015
Weighted average common shares outstanding - diluted		236,855		236,666
Net income/(loss) per share available to common shareholders	$	0.23	$	0.20
Diluted income/(loss) per share available to common shareholders	$	0.23	$	0.20

The following table presents outstanding options and other equity awards that were excluded from the calculation of diluted earnings per share because they were either anti-dilutive (the exercise price was higher than the weighted-average market price for the period) or the performance conditions have not been met:
	Three Months Ended
	March 31
(Shares in thousands)	2017		2016
Stock options excluded from the calculation of diluted EPS		2,453		4,119
Weighted average exercise price of stock options excluded from the calculation of diluted EPS	$	26.08	$	22.45
Other equity awards excluded from the calculation of diluted EPS		99		1,124

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Contingencies And Other Disclosures

3 Months Ended

Mar. 31, 2017

Commitments And Contingencies Disclosure Abstract

Contingencies And Other Disclosures

Note 10 – Contingencies and Other Disclosures

CONTINGENCIES

Contingent Liabilities Overview

Contingent liabilities arise in the ordinary course of business. Often they are related to lawsuits, arbitration, mediation, and other forms of litigation. Various litigation matters are threatened or pending against FHN and its subsidiaries. Also, FHN at times receives requests for information, subpoenas, or other inquiries from federal, state, and local regulators, from other government authorities, and from other parties concerning various matters relating to FHN’s current or former lines of business. Certain matters of that sort are pending at this time, and FHN is cooperating in those matters. Pending and threatened litigation matters sometimes are resolved in court or before an arbitrator, and sometimes are settled by the parties. Regardless of the manner of resolution, frequently the most significant changes in status of a matter occur over a short time period, often following a lengthy period of little substantive activity. In view of the inherent difficulty of predicting the outcome of these matters, particularly where the claimants seek very large or indeterminate damages, or where the cases present novel legal theories or involve a large number of parties, or where claims or other actions may be possible but have not been brought, FHN cannot reasonably determine what the eventual outcome of the matters will be, what the timing of the ultimate resolution of these matters may be, or what the eventual loss or impact related to each matter may be. FHN establishes a loss contingency liability for a litigation matter when loss is both probable and reasonably estimable as prescribed by applicable financial accounting guidance. If loss for a matter is probable and a range of possible loss outcomes is the best estimate available, accounting guidance requires a liability to be established at the low end of the range.

Based on current knowledge, and after consultation with counsel, management is of the opinion that loss contingencies related to threatened or pending litigation matters should not have a material adverse effect on the consolidated financial condition of FHN, but may be material to FHN’s operating results for any particular reporting period depending, in part, on the results from that period.

Material Loss Contingency Matters

Summary

As used in this Note, "material loss contingency matters" generally fall into at least one of the following categories: (i) FHN has determined material loss to be probable and has established a material loss liability in accordance with applicable financial accounting guidance, other than certain matters reported as having been substantially settled or otherwise substantially resolved; (ii) FHN has determined material loss to be probable but is not reasonably able to estimate an amount or range of material loss liability; or (iii) FHN has determined that material loss is not probable but is reasonably possible, and that the amount or range of that reasonably possible material loss is estimable. As defined in applicable accounting guidance, loss is reasonably possible if there is more than a remote chance of a material loss outcome for FHN. Set forth below are disclosures for certain pending or threatened litigation matters, including all matters mentioned in (i) or (ii) and certain matters mentioned in (iii). In addition, certain other matters, or groups of matters, are discussed relating to FHN's former mortgage origination and servicing businesses. In all litigation matters discussed, unless settled or otherwise resolved, FHN believes it has meritorious defenses and intends to pursue those defenses vigorously.

FHN reassesses the liability for litigation matters each quarter as the matters progress. At March 31, 2017, the aggregate amount of liabilities established for all such loss contingency matters was $1.6 million. These liabilities are separate from those discussed under the heading "Repurchase and Foreclosure Liability" below.

In each material loss contingency matter, except as otherwise noted, there is more than a remote chance that any of the following outcomes will occur: the plaintiff will substantially prevail; the defense will substantially prevail; the plaintiff will prevail in part; or the matter will be settled by the parties. At March 31, 2017, FHN estimates that for all material loss contingency matters, estimable reasonably possible losses in future periods in excess of currently established liabilities could aggregate in a range from zero to approximately $52million.

As a result of the general uncertainties discussed above and the specific uncertainties discussed for each matter mentioned below, it is possible that the ultimate future loss experienced by FHN for any particular matter may materially exceed the amount, if any, of currently established liability for that matter. That possibility exists both for matters included in the estimated reasonably possible loss (“RPL”) range mentioned above and for matters not included in that range.

Material Matters

FHN, along with multiple co-defendants, is defending lawsuits brought by investors which claim that the offering documents under which certificates relating to First Horizon branded securitizations were sold to them were materially deficient. One of those matters is viewed as material currently: Federal Deposit Insurance Corporation ("FDIC") as receiver for Colonial Bank, in the U.S. District Court for the Southern District of New York (Case No. 12 Civ. 6166 (LLS)(MHD)). The plaintiff in that suit claims to have purchased (and later sold) certificates totaling $83.4 million, relating to a number of separate securitizations. Plaintiff demands damages and prejudgment interest, among several remedies sought. The current RPL estimate for this matter is subject to significant uncertainties regarding: the dollar amounts claimed; the potential remedies that might be available or awarded; the outcome of any settlement discussions; the availability of significantly dispositive defenses; and the incomplete status of the discovery process. Additional information concerning FHN’s former mortgage businesses is provided below in “Obligations from Legacy Mortgage Businesses.”

Underwriters are co-defendants in the FDIC-New York matter and have demanded, under provisions in the applicable underwriting agreements, that FHN indemnify them for their expenses and any losses they may incur. In addition, FHN has received indemnity demands from underwriters in certain other suits as to which investors claim to have purchased certificates in FH proprietary securitizations but as to which FHN has not been named a defendant.

For most pending indemnity claims FHN is unable to estimate an RPL range due to significant uncertainties regarding: claims as to which the claimant specifies no dollar amount; the potential remedies that might be available or awarded; the availability of significantly dispositive defenses such as statutes of limitations or repose; the outcome of potentially dispositive early-stage motions such as motions to dismiss; the incomplete status of the discovery process; the lack of a precise statement of damages; and lack of precedent claims. The alleged purchase prices of the certificates subject to pending indemnification claims, excluding the FDIC-New York matter, total $409.9million.

FHN is defending a suit filed in January 2017 by the successor to a purchaser of other whole loans sold, ResCap Liquidating Trust, which is pending in the U.S District Court for the District of Minnesota (Case No. 17-CV-194). Plaintiff claims that FHN breached representations and warranties made in the loan sales, which occurred over many years, and that FHN is obligated to indemnify plaintiff for certain losses. The suit seeks make-whole and other damages, indemnification, a declaratory judgment, and other remedies. FHN is unable to estimate an RPL range for this matter due to significant uncertainties regarding, among other things: lack of information about the claims made; the prospects for potentially dispositive early-stage motions; the prospects for significantly dispositive defenses; the scope of potential remedies that might be available or awarded; lack of discovery; lack of a precise statement of damages; and lack of precedent claims.

FHN has additional potential exposures related to its former mortgage businesses. A few of those matters have become litigation which FHN currently estimates are immaterial, some are non-litigation claims or threats, some are mere subpoenas or other requests for information, and in some areas FHN has no indication of any active or threatened dispute. Some of those matters might eventually result in loan repurchases or make-whole payments and could be included in the repurchase liability discussed below, and some might eventually result in damages or other litigation-oriented liability, but none are included in the material loss contingency liabilities mentioned above or in the RPL range mentioned above. Additional information concerning such exposures is provided below in “Obligations from Legacy Mortgage Businesses.”

Material Gain Contingency Matter

In second quarter 2015 FHN reached an agreement with DOJ and HUD to settle potential claims related to FHN’s underwriting and origination of loans insured by FHA. Under that agreement FHN paid $212.5million. FHN believes that certain insurance policies, having an aggregate policy limit of $75 million, provide coverage for FHN’s losses and related costs. The insurers have denied and/or reserved rights to deny coverage. FHN has brought suit against the insurers to enforce the policies under Tennessee law. In connection with this litigation the previously recognized expenses associated with the settled matter may be recouped in part. Under applicable financial accounting guidance FHN has determined that although material gain from this litigation is not probable, there is a reasonably possible (more than remote) chance of a material gain outcome for FHN. FHN cannot determine a probable outcome that may result from this matter because of the uncertainty of the potential outcomes of the legal proceedings and also due to significant uncertainties regarding: legal interpretation of the relevant contracts; potential remedies that might be available or awarded; the ultimate effect of counterclaims asserted by the defendants; and incomplete discovery. Additional information concerning FHN’s former mortgage businesses is provided below in “Obligations from Legacy Mortgage Businesses.”

Obligations from Legacy Mortgage Businesses

Loss contingencies mentioned above under “Material Matters” stem from FHN’s former mortgage origination and servicing businesses. FHN retains potential for further exposure, in addition to the matters mentioned, from those former businesses. The following discussion provides context and other information to enhance an understanding of those matters and exposures.

Overview

Prior to September 2008 FHN originated loans through its legacy mortgage business, primarily first lien home loans, with the intention of selling them. Sales typically were effected either as non-recourse whole-loan sales or through non-recourse proprietary securitizations. Conventional conforming single-family residential mortgage loans were sold predominately to two GSEs: Fannie Mae and Freddie Mac. Also, federally insured or guaranteed whole loans were pooled, and payments to investors were guaranteed through Ginnie Mae. Many mortgage loan originations, especially nonconforming mortgage loans, were sold to investors, or certificate-holders, predominantly through FH proprietary securitizations but also, to a lesser extent, through other whole loans sold to private non-Agency purchasers. FHN used only one trustee for all of its FH proprietary securitizations. FHN also originated mortgage loans eligible for FHA insurance or VA guaranty. In addition, FHN originated and sold HELOCs and second lien mortgages through other whole loans sold to private purchasers and, to a lesser extent, through FH proprietary securitizations. Currently, only one FH securitization of HELOCs remains outstanding.

For non-recourse loan sales, FHN has exposure for repurchase of loans, make-whole damages, or other related damages, arising from claims that FHN breached its representations and warranties made at closing to the purchasers, including GSEs, other whole loan purchasers, and the trustee of FH proprietary securitizations.

During the time these legacy activities were conducted, FHN frequently sold mortgage loans “with servicing retained.” As a result, FHN accumulated substantial amounts of MSR on its consolidated balance sheet, as well as contractual servicing obligations and related deposits and receivables. FHN conducted a significant servicing business under its First Horizon Home Loans brand.

MI was required by GSE rules for certain of the loans sold to GSEs and was also provided for certain of the loans that were securitized. MI generally was provided for first lien loans sold or securitized having an LTV ratio at origination of greater than 80 percent.

In 2007, market conditions deteriorated to the point where mortgage-backed securitizations no longer could be sold economically; FHN’s last securitization occurred that year. FHN continued selling mortgage loans to GSEs until August 31, 2008, when FHN sold its national mortgage origination and servicing platforms along with a portion of its servicing assets and obligations. FHN contracted to have its remaining servicing obligations sub-serviced. Since the platform sale FHN has sold substantially all remaining servicing assets and obligations.

Certain mortgage-related terms used in this “Contingencies” section are defined in “Mortgage-Related Glossary” at the end of this Overview.

Repurchase and Make-Whole Obligations

Starting in 2009, FHN received a high number of claims either to repurchase loans from the purchaser or to pay the purchaser to “make them whole” for economic losses incurred. These claims have been driven primarily by loan delinquencies. In repurchase or make-whole claims a loan purchaser typically asserts that specified loans violated representations and warranties FHN made when the loans were sold. A significant majority of claims received overall have come from GSEs, and the remainder are from purchasers of other whole loan sales. FHN has not received a loan repurchase or make-whole claim from the FH proprietary securitization trustee.

Generally, FHN reviews each claim and MI cancellation notice individually. FHN’s responses include appeal, provide additional information, deny the claim (rescission), repurchase the loan or remit a make-whole payment, or reflect cancellation of MI.

After several years resolving repurchase and make-whole claims with each GSE on a loan-by-loan basis, in 2013 and 2014 FHN entered into DRAs with the GSEs, resolving at once a large fraction of potential claims. Starting in 2014, the overall number of such claims diminished substantially, primarily as a result of the DRAs. Each DRA resolved obligations associated with loans originated from 2000 to 2008, but certain obligations and loans were excluded. Under each DRA, FHN remains responsible for repurchase obligations related to certain excluded defects (such as title defects and violations of the GSE's Charter Act) and FHN continues to have loan repurchase or monetary compensation obligations under the DRAs related to private mortgage insurance rescissions, cancellations, and denials (with certain exceptions). FHN also has exposure related to loans where there has been a prior bulk sale of servicing, as well as certain other whole-loan sales. With respect to loans where there has been a prior bulk sale of servicing, FHN is not responsible for MI cancellations and denials to the extent attributable to the acts of the current servicer.

While large portions of repurchase claims from the GSEs were settled with the DRAs, comprehensive settlement of repurchase, make-whole, and indemnity claims with non-Agency claimants is not practical. Such claims that are not resolved by the parties can, and sometimes have, become litigation.

FH Proprietary Securitization Actions

FHN has potential financial exposure from FH proprietary securitizations outside of the repurchase/make-whole process. Several investors in certificates sued FHN and others starting in 2009, and several underwriters or other counterparties have demanded that FHN indemnify and defend them in securitization lawsuits. The pending suits generally assert that disclosures made to investors in the offering and sale of certificates were legally deficient.

Servicing Obligations

FHN’s national servicing business was sold as part of the platform sale in 2008. A significant amount of MSR was sold at that time, and a significant amount was retained. The related servicing activities, including foreclosure and loss mitigation practices, not sold in 2008 were outsourced through a three-year subservicing arrangement (the “2008 subservicing agreement”) with the platform buyer (the “2008 subservicer”). The 2008 subservicing agreement expired in 2011 when FHN entered into a replacement agreement with a new subservicer (the “2011 subservicer”). In fourth quarter 2013, FHN contracted to sell a substantial majority of its remaining servicing obligations and servicing assets (including advances) to the 2011 subservicer. The servicing was transferred to the buyer in stages, and was substantially completed in first quarter 2014. The servicing still retained by FHN continues to be subserviced.

As servicer, FHN had contractual obligations to the owners of the loans (primarily GSEs) and securitization trustees, to handle billing, custodial, and other tasks related to each loan. Each subservicer undertook to perform those obligations on FHN’s behalf during the applicable subservicing period, although FHN legally remained the servicer of record for those loans that were subserviced.

The 2008 subservicer has been subject to a consent decree, and entered into a settlement agreement with regulators related to alleged deficiencies in servicing and foreclosure practices. The 2008 subservicer has made demands of FHN, under the 2008 subservicing agreement, to pay certain resulting costs and damages totaling $43.5million. FHN disagrees with those demands and has made no payments. This disagreement has the potential to result in litigation and, in any such future litigation, the claim against FHN may be substantial.

A certificate holder has contacted FHN, claiming that it has been damaged from alleged deficiencies in servicing loans held in certain FH proprietary securitization trusts. The holder has sued the FH securitization trustee on related grounds, but has not yet sued FHN. FHN cannot predict how this matter will proceed nor can FHN predict whether this matter ultimately will be material to FHN.

Origination Data

From 2005 through 2008, FHN originated and sold $69.5 billion of mortgage loans to the Agencies. This includes $57.6 billion of loans sold to GSEs and $11.9 billion of loans guaranteed by Ginnie Mae. Although FHN conducted these businesses before 2005, GSE loans originated in 2005 through 2008 account for a substantial majority of all repurchase requests/make-whole claims received since the 2008 platform sale.

From 2005 through 2007, $26.7billion of mortgage loans were included in FH proprietary securitizations. The last FH securitization occurred in 2007.

Mortgage-Related Glossary
Agencies	the two GSEs and Ginnie Mae	HELOC	home equity line of credit
certificates	securities sold to investors representing interests in mortgage loan securitizations	HUD	Dept. of Housing and Urban Development
DOJ	U.S. Department of Justice	LTV	loan-to-value, a ratio of the loan amount divided by the home value
DRA	definitive resolution agreement with a GSE	MI	private mortgage insurance, insuring against borrower payment default
Fannie Mae, Fannie, FNMA	Federal National Mortgage Association	MSR	mortgage servicing rights
FH proprietary securitization	securitization of mortgages sponsored by FHN under its First Horizon brand	nonconforming loans	loans that did not conform to Agency program requirements
FHA	Federal Housing Administration	other whole loans sold	mortgage loans sold to private, non-Agency purchasers
Freddie Mac, Freddie, FHLMC	Federal Home Loan Mortgage Corporation	2008 platform sale, platform sale, 2008 sale	FHN's sale of its national mortgage origination and servicing platforms in 2008
Ginnie Mae, Ginnie, GNMA	Government National Mortgage Association	pipeline or active pipeline	pipeline of mortgage repurchase, make-whole, & certain related claims against FHN
GSEs	Fannie Mae and Freddie Mac	VA	Veterans Administration

Repurchase and Foreclosure Liability

The repurchase and foreclosure liability is comprised of reserves to cover estimated loss content in the active pipeline, estimated future inflows, as well as estimated loss content related to certain known claims not currently included in the active pipeline. FHN compares the estimated probable incurred losses determined under the applicable loss estimation approaches for the respective periods with current reserve levels. Changes in the estimated required liability levels are recorded as necessary through the repurchase and foreclosure provision.

Based on currently available information and experience to date, FHN has evaluated its loan repurchase, make-whole, and certain related exposuresand has accrued for losses of $65.5 million and $66.0million as of March 31, 2017 and December 31, 2016, respectively, including a smaller amount related to equity-lending junior lien loan sales. Accrued liabilities for FHN’s estimate of these obligations are reflected in Other liabilities on the Consolidated Condensed Statements of Condition. Charges/expense reversals to increase/decrease the liability are included within Repurchase and foreclosure provision/(provision credit) on the Consolidated Condensed Statements of Income.The estimatesare based upon currently available information and fact patterns that exist as of the balance sheet dates and could be subject to future changes.Changes to any one of these factors could significantly impact the estimate of FHN's liability.

Other FHN Mortgage Exposures

FHN’s FHA and VA program lending was substantial prior to the 2008 platform sale, and has continued at a much lower level since then. As lender, FHN made certain representations and warranties as to the compliance of the loans with program requirements. Over the past several years, most recently in first quarter 2015, FHN occasionally has recognized significant losses associated with settling claims and potential claims by government agencies, and by private parties asserting claims on behalf of agencies, related to these origination activities. At March 31, 2017, FHN had not accrued a liability for any matter related to these government lending programs, and no pending or known threatened matter related to these programs represented a material loss contingency described above.

At March 31, 2017, FHN had not accrued a liability for exposure for repurchase of first-lien loans related to FH proprietary securitizations arising from claims from the trustee that FHN breached its representations and warranties in FH proprietary securitizations at closing. FHN’s trustee is a defendant in lawsuits in which the plaintiffs have asserted that the trustee has duties to review loans and otherwise to act against FHN outside of the duties specified in the applicable trust documents; FHN is not a defendant and is not able to assess what, if any, exposure FHN may have as a result of them.

FHN is defending, directly or as indemnitor, certain pending lawsuits brought by purchasers of certificates in FH proprietary securitizations or their assignees. FHN believes a new lawsuit based on federal securities claims that offering disclosures were deficient cannot be brought at this time due to the running of applicable limitation periods, but other investor claims, based on other legal theories, might still be possible. Due to sales of MSR starting in 2008, FHN has limited visibility into current loan information such as principal payoffs, refinance activity, delinquency trends, and loan modification activity.

Many non-GSE purchasers of whole loans from FHN included those loans in their own securitizations. Regarding such other whole loans sold, FHN made representations and warranties concerning the loans and provided indemnity covenants to the purchaser/securitizer. Typically the purchaser/securitizer assigned key contractual rights against FHN to the securitization trustee. As mentioned above, repurchase, make-whole, indemnity, and other monetary claims related to specific loans are included in the active pipeline and repurchase reserve. In addition, currently the following categories of actions are pending which involve FHN and other whole loans sold: (i) FHN has received indemnification requests from purchasers of loans or their assignees in cases where FHN is not a defendant; (ii) FHN has received subpoenas seeking loan reviews in cases where FHN is not a defendant; (iii) FHN has received repurchase demands from purchasers or their assignees; and (iv) FHN is a defendant in legal actions involving FHN-originated other whole loans sold, including one of the material matters mentioned above. At March 31, 2017, FHN’s repurchase and foreclosure liability considered certain known exposures from other whole loans sold.

Certain government entities have subpoenaed information from FHN and others. These entities include the FDIC (on behalf of certain failed banks) and the FHLBs of San Francisco, Atlanta, and Seattle, among others. These entities purport to act on behalf of several purchasers of FH proprietary securitizations, and of non-FH securitizations which included other whole loans sold. Collectively, the subpoenas seek information concerning: a number of FH proprietary securitizations and/or underlying loan originations; and originations of certain other whole loans sold which, in many cases, were included by the purchaser in its own securitizations. Some subpoenas fail to identify the specific investments made or loans at issue. Moreover, FHN has limited information regarding at least some of the loans under review. Unless and until a review (if related to specific loans) becomes an identifiable repurchase claim, the associated loans are not considered part of the active pipeline.

OTHER DISCLOSURES

Visa Matters

FHN is a member of the Visa USA network. In October 2007, the Visa organization of affiliated entities completed a series of global restructuring transactions to combine its affiliated operating companies, including Visa USA, under a single holding company, Visa Inc. (“Visa”). Upon completion of the reorganization, the members of the Visa USA network remained contingently liable for certain Visa litigation matters (the "Covered Litigation"). Based on its proportionate membership share of Visa USA, FHN recognized a contingent liability in fourth quarter 2007 related to this contingent obligation. In March 2008, Visa completed its initial public offering (“IPO”) and funded an escrow account from its IPO proceeds to be used to make payments related to the Visa litigation matters. FHN received approximately 2.4 million Class B shares in conjunction with Visa’s IPO.

Conversion of these shares into Class A shares of Visa is prohibited until the final resolution of the covered litigation. In conjunction with the prior sales of Visa Class B shares in December 2010 and September 2011, FHN and the purchasers entered into derivative transactions whereby FHN will make, or receive, cash payments whenever the conversion ratio of the Visa Class B shares into Visa Class A shares is adjusted. The conversion ratio is adjusted when Visa deposits funds into the escrow account to cover certain litigation. As of March 31, 2017 and December 31, 2016, the derivative liabilities were $6.0 million and $6.2 million, respectively.

In July 2012, Visa and MasterCard announced a joint settlement (the "Settlement") related to the Payment Card Interchange matter, one of the Covered Litigation matters. Based on the amount of the Settlement attributable to Visa and an assessment of FHN's contingent liability accrued for Visa litigation matters, the Settlement did not have a material impact on FHN. The Settlement was vacated upon appeal in June 2016.Accordingly, the outcome of this matter remains uncertain. Additionally, other Covered Litigation matters are also pending judicial resolution, including new matters filed by class members who opted out of the Settlement. So long as any Covered Litigation matter remains pending, FHN's ability to transfer its Visa holdings is restricted, with limited exceptions.

FHN now holds approximately 1.1 million Visa Class B shares.FHN’s Visa shares are not considered to be marketable and therefore are included in the Consolidated Condensed Statements of Condition at their historical cost of $0. As of March 31, 2017, the conversion ratio is 165 percent reflecting a Visa stock split in March 2015, and the contingent liability is $.8 million. Future funding of the escrow would dilute this conversion ratio by an amount that is not determinable at present. Based on the closing price on March 31, 2017, assuming conversion into Class A shares at the current conversion ratio, FHN’s Visa holdings would have a value of approximately $163 million. Recognition of this value is dependent upon the final resolution of the remainder of Visa’s Covered Litigation matters without further reduction of the conversion ratio.

Indemnification Agreements and Guarantees

In the ordinary course of business, FHN enters into indemnification agreements for legal proceedings against its directors and officers and standard representations and warranties for underwriting agreements, merger and acquisition agreements, loan sales, contractual commitments, and various other business transactions or arrangements. The extent of FHN’s obligations under these agreements depends upon the occurrence of future events; therefore, it is not possible to estimate a maximum potential amount of payouts that could be required with such agreements.

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Pension, Savings, And Other Employee Benefits

3 Months Ended

Mar. 31, 2017

Pension, Savings, And Other Employee Benefits [Abstract]

Pension, Savings, And Other Employee Benefits

Note 11 – Pension, Savings, and Other Employee Benefits

Pension plan. FHN sponsors a noncontributory, qualified defined benefit pension plan to employees hired or re-hired on or before September 1, 2007. Pension benefits are based on years of service, average compensation near retirement or other termination, and estimated social security benefits at age 65. Benefits under the plan are “frozen” so that years of service and compensation changes after 2012 do not affect the benefit owed. Minimum contributions are based upon actuarially determined amounts necessary to fund the total benefit obligation. Decisions to contribute to the plan are based upon pension funding requirements under the Pension Protection Act, the maximum amount deductible under the Internal Revenue Code, the actual performance of plan assets, and trends in the regulatory environment. FHN contributed $165 million to the qualified pension plan in third quarter 2016. The contribution had no effect on FHN’s 2016 Consolidated Statements of Income. FHN did not make any contributions to the qualified pension plan in the first quarter of 2017. Management does not currently anticipate that FHN will make a contribution to the qualified pension plan for the remainder of 2017.

FHN also maintains non-qualified plans including a supplemental retirement plan that covers certain employees whose benefits under the qualified pension plan have been limited by tax rules. These other non-qualified plans are unfunded, and contributions to these plans cover all benefits paid under the non-qualified plans. Payments made under the non-qualified plans were $5.1 million for 2016. FHN anticipates making benefit payments under the non-qualified plans of $5.0 million in 2017.

Savings plan. FHN provides all qualifying full-time employees with the opportunity to participate in the FHN tax qualified 401(k) savings plan. The qualified plan allows employees to defer receipt of earned salary, up to tax law limits, on a tax-advantaged basis. Accounts, which are held in trust, may be invested in a wide range of mutual funds and in FHN common stock. Up to tax law limits, FHN provides a 100 percent match for the first 6 percent of salary deferred, with company matching contributions invested according to a participant’s current investment elections. Through a non-qualified savings restoration plan, FHN provides a restorative benefit to certain highly-compensated employees who participate in the savings plan and whose contribution elections are capped by tax limitations.

Other employee benefits. FHN provides postretirement life insurance benefits to certain employees and also provides postretirement medical insurance benefits to retirement-eligible employees. The postretirement medical plan is contributory with FHN contributing a fixed amount for certain participants. FHN’s postretirement benefits include certain prescription drug benefits.

The components of net periodic benefit cost for the three months ended March 31 are as follows:
		Pension Benefits				Other Benefits
(Dollars in thousands)		2017		2016		2017		2016
Components of net periodic benefit cost
Service cost		$	9	$	10	$	27	$	28
Interest cost			7,379		7,882		326		317
Expected return on plan assets			(8,891)		(9,773)		(237)		(229)
Amortization of unrecognized:
	Prior service cost/(credit)		13		49		24		43
	Actuarial (gain)/loss		2,380		2,068		(142)		(233)
Net periodic benefit cost/(credit)		$	890	$	236	$	(2)	$	(74)

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Business Segment Information

3 Months Ended

Mar. 31, 2017

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 consumer and commercial customersin Tennessee and other selected markets. Regional banking also 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 securities sales, trading, and strategies for institutional clients in the U.S. and abroad, as well as loan sales, portfolio advisory services, 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,derivative valuation adjustments related to prior sales of Visa Class B shares, 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. Business segment revenue, expense, asset, and equity 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 average assets for each segment for the three months ended March 31:

		Three Months Ended
		March 31
(Dollars in thousands)	2017		2016
Consolidated
Net interest income	$	189,708	$	172,074
Provision/(provision credit) for loan losses		(1,000)		3,000
Noninterest income		116,939		134,305
Noninterest expense		222,205		226,927
Income/(loss) before income taxes		85,442		76,452
Provision/(benefit) for income taxes		27,054		24,239
Net income/(loss)	$	58,388	$	52,213
Average assets	$	28,806,106	$	26,618,694

	Three Months Ended
	March 31
(Dollars in thousands)	2017		2016
Regional Banking
Net interest income	$	193,389	$	172,312
Provision/(provision credit) for loan losses		3,098		14,767
Noninterest income		58,976		59,276
Noninterest expense		148,065		145,399
Income/(loss) before income taxes		101,202		71,422
Provision/(benefit) for income taxes		36,623		25,407
Net income/(loss)	$	64,579	$	46,015
Average assets	$	17,955,319	$	15,945,192

Fixed Income
Net interest income	$	1,151	$	2,667
Noninterest income		50,822		67,122
Noninterest expense		48,685		58,623
Income/(loss) before income taxes		3,288		11,166
Provision/(benefit) for income taxes		1,024		3,892
Net income/(loss)	$	2,264	$	7,274
Average assets	$	1,875,708	$	2,269,678

Corporate
Net interest income/(expense)	$	(14,100)	$	(14,363)
Noninterest income		5,476		5,723
Noninterest expense		16,880		13,461
Income/(loss) before income taxes		(25,504)		(22,101)
Provision/(benefit) for income taxes		(13,093)		(11,246)
Net income/(loss)	$	(12,411)	$	(10,855)
Average assets	$	7,359,015	$	6,362,224

Non-Strategic
Net interest income	$	9,268	$	11,458
Provision/(provision credit) for loan losses		(4,098)		(11,767)
Noninterest income		1,665		2,184
Noninterest expense		8,575		9,444
Income/(loss) before income taxes		6,456		15,965
Provision/(benefit) for income taxes		2,500		6,186
Net income/(loss)	$	3,956	$	9,779
Average assets	$	1,616,064	$	2,041,600
Certain previously reported amounts have been reclassified to agree with current presentation.

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Variable Interest Entities

3 Months Ended

Mar. 31, 2017

Variable Interest Entities [Abstract]

Variable Interest Entities

Note 13 – Variable Interest Entities

ASC 810 defines a VIE as a legal entity where (a) the equity investors, as a group, lack sufficient equity at risk for the entity to finance its activities without additional subordinated financial support, (b) the equity investors, as a group, lack either, (1) the power through voting rights, or similar rights, to direct the activities of an entity that most significantly impact the entity’s economic performance, (2) the obligation to absorb the expected losses of the entity, or (3) the right to receive the expected residual returns of the entity, or (c) the entity is structured with non-substantive voting rights. A variable interest is a contractual ownership or other interest that fluctuates with changes in the fair value of the VIE’s net assets exclusive of variable interests. Under ASC 810, as amended, a primary beneficiary is required to consolidate a VIE when it has a variable interest in a VIE that provides it with a controlling financial interest. For such purposes, the determination of whether a controlling financial interest exists is based on whether a single party has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant.

Consolidated Variable Interest Entities

FHN holds variable interests in a proprietary HELOC securitization trust it established as a source of liquidity for consumer lending operations. Based on its restrictive nature, the trust is considered a VIE as the holders of equity at risk do not have the power through voting rights or similar rights to direct the activities that most significantly impact the trust’s economic performance. The retention of MSR and a residual interest results in FHN potentially absorbing losses or receiving benefits that are significant to the trust. FHN is considered the primary beneficiary, as it is assumed to have the power, as Master Servicer, to most significantly impact the activities of the VIE. Consolidation of the trust results in the recognition of the trust proceeds as restricted borrowings since the cash flows on the securitized loans can only be used to settle the obligations due to the holders of trust securities. Through first quarter 2016 the trust experienced a rapid amortization period and FHN was obligated to provide subordinated funding. During the period, cash payments from borrowers were accumulated to repay outstanding debt securities while FHN continued to make advances to borrowers when they drew on their lines of credit. FHN then transferred the newly generated receivables into the securitization trust. FHN is reimbursed for these advances only after other parties in the securitization have received all of the cash flows to which they are entitled. If loan losses requiring draws on the related monoline insurers’ policies(which protect bondholders in the securitization) exceed a certain level, FHN may not receive reimbursement for all of the funds advanced to borrowers, as the senior bondholders and the monoline insurers typically have priority for repayment. Amounts funded from monoline insurance policies are considered restricted term borrowings in FHN’s Consolidated Condensed Statements of Condition. Except for recourse due to breaches of representations and warranties made by FHN in connection with the sale of the loans to the trust, the creditors of the trust hold no recourse to the assets of FHN.

FHN has established certain rabbi trusts related to deferred compensation plans offered to its employees. FHN contributes employee cash compensation deferrals to the trusts and directs the underlying investments made by the trusts. The assets of these trusts are available to FHN’s creditors only in the event that FHN becomes insolvent. These trusts are considered VIEs as there is no equity at risk in the trusts since FHN provided the equity interest to its employees in exchange for services rendered. FHN is considered the primary beneficiary of the rabbi trusts as it has the power to direct the activities that most significantly impact the economic performance of the rabbi trusts through its ability to direct the underlying investments made by the trusts. Additionally, FHN could potentially receive benefits or absorb losses that are significant to the trusts due to its right to receive any asset values in excess of liability payoffs and its obligation to fund any liabilities to employees that are in excess of a rabbi trust’s assets.

The following table summarizes VIEs consolidated by FHN as of March 31, 2017 and December 31, 2016:
			March 31, 2017						December 31, 2016
			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				$	-			N/A		$	-			N/A
Loans, net of unearned income					32,486			N/A			35,873			N/A
	Less: Allowance for loan losses				244			N/A			587			N/A
		Total net loans			32,242			N/A			35,286			N/A
Other assets					150		$	76,149			283		$	74,160
Total assets				$	32,392		$	76,149		$	35,569		$	74,160
Liabilities:
Term borrowings				$	19,819			N/A		$	23,126			N/A
Other liabilities					3		$	57,559			3		$	54,746
Total liabilities				$	19,822		$	57,559		$	23,129		$	54,746

Nonconsolidated Variable Interest Entities

Low Income Housing Partnerships. First Tennessee Housing Corporation (“FTHC”), a wholly-owned subsidiary of FTBNA, makes equity investments as a limited partner in various partnerships that sponsor affordable housing projects utilizing the Low Income Housing Tax Credit (“LIHTC”) pursuant to Section 42 of the Internal Revenue Code. The purpose of these investments is to achieve a satisfactory return on capital and to support FHN’s community reinvestment initiatives. The activities of the limited partnerships include the identification, development, and operation of multi-family housing units that are leased to qualifying residential tenants generally within FHN’s primary geographic region. LIHTC partnerships are considered VIEs as FTHC, the holder of the equity investment at risk, does not have the ability to direct the activities that most significantly affect the performance of the entity through voting rights or similar rights. FTHC could absorb losses that are significant to the LIHTC partnerships as it has a risk of loss for its capital contributions and funding commitments to each partnership. The general partners are considered the primary beneficiaries as managerial functions give them the power to direct the activities that most significantly impact the entities’ economic performance and the managing members are exposed to all losses beyond FTHC’s initial capital contributions and funding commitments.

FHN accounts for all qualifying LIHTC investments under the proportional amortization method. Under this method an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense/(benefit). LIHTC investments that do not qualify for the proportional amortization method are accounted for using the equity method. Expenses associated with these investments were not significant for the three months ended March 17, 2017 and 2016. The following table summarizes the impact to the Provision/(benefit) for income taxes on the Consolidated Condensed Statements of Income for the three months endedMarch 31, 2017, and 2016 for LIHTC investments accounted for under the proportional amortization method.

	Three Months Ended			Three Months Ended
(Dollars in thousands)	March 31, 2017		March 31, 2016
Provision/(benefit) for income taxes:
Amortization of qualifying LIHTC investments	$	2,278		$	2,298
Low income housing tax credits		(2,400)			(2,523)
Other tax benefits related to qualifying LIHTC investments		(919)			(1,110)

Other Tax Credit Investments. First Tennessee New Markets Corporation (“FTNMC”), a wholly-owned subsidiary of FTBNA, makes equity investments through wholly-owned subsidiaries as a non-managing member in various limited liability companies (“LLCs”) that sponsor community development projects utilizing the New Market Tax Credit (“NMTC”) pursuant to Section 45 of the Internal Revenue Code. The purpose of these investments is to achieve a satisfactory return on capital and to support FHN’s community reinvestment initiatives. The activities of the LLCs include providing investment capital for low-income communities within FHN’s primary geographic region. A portion of the funding of FTNMC’s investment in a NMTC LLC is obtained via a loan from an unrelated third-party that is typically a community development enterprise. The NMTC LLCs are considered VIEs as FTNMC, the holder of the equity investment at risk, does not have the ability to direct the activities that most significantly affect the performance of the entity through voting rights or similar rights. While FTNMC could absorb losses that are significant to the NMTC LLCs as it has a risk of loss for its initial capital contributions, the managing members are considered the primary beneficiaries as managerial functions give them the power to direct the activities that most significantly impact the NMTC LLCs’ economic performance and the managing members are exposed to all losses beyond FTNMC’s initial capital contributions.

FTHC also makes equity investments as a limited partner or non-managing member in entities that receive Historic Tax Credits pursuant to Section 47 of the Internal Revenue Code. The purpose of these entities is the rehabilitation of historic buildings with the tax credits provided to incent private investment in the historic cores of cities and towns. These entities are considered VIEs as FTHC, the holder of the equity investment at risk, does not have the ability to direct the activities that most significantly affect the performance of the entity through voting rights or similar rights. FTHC could absorb losses that are significant to the entities as it has a risk of loss for its capital contributions and funding commitments to each partnership. The managing members are considered the primary beneficiaries as managerial functions give them the power to direct the activities that most significantly impact the entities’ economic performance and the managing members are exposed to all losses beyond FTHC’s initial capital contributions and funding commitments.

Small Issuer Trust Preferred Holdings. FTBNA holds variable interests in trusts which have issued mandatorily redeemable preferred capital securities (“trust preferreds”) for smaller banking and insurance enterprises. FTBNA has no voting rights for the trusts’ activities. The trusts’ only assets are junior subordinated debentures of the issuing enterprises. The creditors of the trusts hold no recourse to the assets of FTBNA. These trusts meet the definition of a VIE as the holders of the equity investment at risk do not have the power through voting rights, or similar rights, to direct the activities that most significantly impact the trusts’ economic performance. Based on the nature of the trusts’ activities and the size of FTBNA’s holdings, FTBNA could potentially receive benefits or absorb losses that are significant to the trusts regardless of whether a majority of a trust’s securities are held by FTBNA. However, since FTBNA is solely a holder of the trusts’ securities, it has no rights which would give it the power to direct the activities that most significantly impact the trusts’ economic performance and thus it is not considered the primary beneficiary of the trusts. FTBNA has no contractual requirements to provide financial support to the trusts.

On-Balance Sheet Trust Preferred Securitization. In 2007, FTBNA executed a securitization of certain small issuer trust preferreds for which the underlying trust meets the definition of a VIE as the holders of the equity investment at risk do not have the power through voting rights, or similar rights, to direct the activities that most significantly impact the entity’s economic performance. FTBNA could potentially receive benefits or absorb losses that are significant to the trust based on the size and priority of the interests it retained in the securities issued by the trust. However, since FTBNA did not retain servicing or other decision making rights, FTBNA is not the primary beneficiary as it does not have the power to direct the activities that most significantly impact the trust’s economic performance. Accordingly, FTBNA has accounted for the funds received through the securitization as a term borrowing in its Consolidated Condensed Statements of Condition. FTBNA has no contractual requirements to provide financial support to the trust.

Proprietary Residential Mortgage Securitizations. FHN holds variable interests (primarily principal-only strips) in proprietary residential mortgage securitization trusts it established prior to 2008 as a source of liquidity for its mortgage banking operations. Prior to fourth quarter 2016 these interests included MSR and interest-only strips. Except for recourse due to breaches of representations and warranties made by FHN in connection with the sale of the loans to the trusts, the creditors of the trusts hold no recourse to the assets of FHN. Additionally, FHN has no contractual requirements to provide financial support to the trusts. Based on their restrictive nature, the trusts are considered VIEs as the holders of equity at risk do not have the power through voting rights, or similar rights, to direct the activities that most significantly impact the trusts’ economic performance. While it held MSR, FHN was assumed to have the power as servicer to most significantly impact the activities of such VIEs. However, in situations where FHN did not have the ability to participate in significant portions of a securitization trust’s cash flows, FHN was not considered the primary beneficiary of the trust. Therefore, these trusts were not consolidated by FHN.

Holdings & Short Positions in Agency Mortgage-Backed Securities. FHN holds securities issued by various Agency securitization trusts. Based on their restrictive nature, the trusts meet the definition of a VIE since the holders of the equity investments at risk do not have the power through voting rights, or similar rights, to direct the activities that most significantly impact the entities’ economic performance. FHN could potentially receive benefits or absorb losses that are significant to the trusts based on the nature of the trusts’ activities and the size of FHN’s holdings. However, FHN is solely a holder of the trusts’ securities and does not have the power to direct the activities that most significantly impact the trusts’ economic performance, and is not considered the primary beneficiary of the trusts. FHN has no contractual requirements to provide financial support to the trusts.

Commercial Loan Troubled Debt Restructurings. For certain troubled commercial loans, FTBNA restructures the terms of the borrower’s debt in an effort to increase the probability of receipt of amounts contractually due. Following a troubled debt restructuring, the borrower entity typically meets the definition of a VIE as the initial determination of whether an entity is a VIE must be reconsidered as events have proven that the entity’s equity is not sufficient to permit it to finance its activities without additional subordinated financial support or a restructuring of the terms of its financing. As FTBNA does not have the power to direct the activities that most significantly impact such troubled commercial borrowers’ operations, it is not considered the primary beneficiary even in situations where, based on the size of the financing provided, FTBNA is exposed to potentially significant benefits and losses of the borrowing entity. FTBNA has no contractual requirements to provide financial support to the borrowing entities beyond certain funding commitments established upon restructuring of the terms of the debt that allows for preparation of the underlying collateral for sale.

Sale Leaseback Transaction. FTB has entered into an agreement with a single asset leasing entity for the sale and leaseback of an office building. In conjunction with this transaction, FTB loaned funds to a related party of the buyer that were used for the purchase price of the building. FTB also entered into a construction loan agreement with the single asset entity for renovation of the building. Since this transaction did not qualify as a sale, it is being accounted for using the deposit method which creates a net asset or liability for all cash flows between FTB and the buyer. The buyer-lessor in this transaction meets the definition of a VIE as it does not have sufficient equity at risk since FTB is providing the funding for the purchase and renovation. A related party of the buyer-lessor has the power to direct the activities that most significantly impact the operations and could potentially receive benefits or absorb losses that are significant to the transactions, making it the primary beneficiary. Therefore, FTB does not consolidate the leasing entity.

The following table summarizes FHN’s nonconsolidated VIEs as of March 31, 2017:
	Maximum		Liability
(Dollars in thousands)	Loss Exposure		Recognized			Classification
Type
Low income housing partnerships	$	71,114		$	14,749	(a)
Other tax credit investments (b) (c)		21,210			-	Other assets
Small issuer trust preferred holdings (d)		332,959			-	Loans, net of unearned income
On-balance sheet trust preferred securitization		49,361			64,812	(e)
Proprietary residential mortgage securitizations		2,330			-	Trading securities
Holdings of agency mortgage-backed securities (d)		4,289,239			-	(f)
Commercial loan troubled debt restructurings (g)		35,295			-	Loans, net of unearned income
Sale-leaseback transaction		14,827			-	(h)

• Maximum loss exposure represents $56.4 million of current investments and $14.7 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 2017.
• 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, $18.0million 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 $64.8 million classified as Term borrowings.
• Includes $.5 billion classified as Trading securities and $3.8 billion classified as Securities available-for-sale.
• Maximum loss exposure represents $34.5 million of current receivables and $.8 million of contractual funding commitments on loans related to commercial borrowers involved in a troubled debt restructuring.
• Maximum loss exposure represents the current loan balance plus additional funding commitments less amounts received from the buyer-lessor.

The following table summarizes FHN's nonconsolidated VIEs as of December 31, 2016:
	Maximum		Liability
(Dollars in thousands)	Loss  Exposure		Recognized		Classification
Type
Low income housing partnerships	$	73,582	$	17,398	(a)
Other tax credit investments (b) (c)		21,898		-	Other assets
Small issuer trust preferred holdings (d)		332,985		-	Loans, net of unearned income
On-balance sheet trust preferred securitization		49,361		64,812	(e)
Proprietary residential mortgage securitizations		2,568		-	Trading securities
Holdings of agency mortgage-backed securities (d)		4,163,313		-	(f)
Commercial loan troubled debt restructurings (g)		42,696		-	Loans, net of unearned income
Sale-leaseback transaction		11,827		-	(h)

• Maximum loss exposure represents $56.2 million of current investments and $17.4 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 2017.
• 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 $64.8 million classified as Term borrowings.
• Includes $.4 billion classified as Trading securities and $3.8 billion classified as Securities available-for-sale.
• Maximum loss exposure represents $37.5 million of current receivables and $5.2 million of contractual funding commitments on loans related to commercial borrowers involved in a troubled debt restructuring.
• Maximum loss exposure represents the current loan balance plus additional funding commitments less amounts received from the buyer-lessor.

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Derivatives

3 Months Ended

Mar. 31, 2017

Derivatives [Abstract]

Derivatives

Note 14 – Derivatives

In the normal course of business, FHN utilizes various financial instruments (including derivative contracts and credit-related agreements) through its fixed income and risk management operations, as part of its risk management strategy and as a means to meet customers’ needs. Derivative instruments are subject to credit and market risks in excess of the amount recorded on the balance sheet as required by GAAP. The contractual or notional amounts of these financial instruments do not necessarily represent the amount of credit or market risk. However, they can be used to measure the extent of involvement in various types of financial instruments. Controls and monitoring procedures for these instruments have been established and are routinely reevaluated. The Asset/Liability Committee (“ALCO”) controls, coordinates, and monitors the usage and effectiveness of these financial instruments.

Credit risk represents the potential loss that may occur if a party to a transaction fails to perform according to the terms of the contract. The measure of credit exposure is the replacement cost of contracts with a positive fair value. FHN manages credit risk by entering into financial instrument transactions through national exchanges, primary dealers or approved counterparties, and by using mutual margining and master netting agreements whenever possible to limit potential exposure. FHN also maintains collateral posting requirements with certain counterparties to limit credit risk. Commencing in first quarter 2017, a central clearinghouse revised the treatment of daily margin posted or received from collateral to legal settlements of the related derivative contracts. This change resulted in a reduction in derivative assets and liabilities and corresponding reductions in collateral posted and received as these amounts are now presented net by contract in the Consolidated Condensed Statements of Condition. This change has no effect on hedge accounting or gains/losses for the applicable derivative contracts. On March 31, 2017 and December 31, 2016, respectively, FHN had $41.9 million and $47.8 million of cash receivables and $29.4 million and $32.8 million of cash payables related to collateral posting under master netting arrangements, inclusive of collateral posted related to contracts with adjustable collateral posting thresholds and over-collateralized positions, with derivative counterparties. With exchange-traded contracts, the credit risk is limited to the clearinghouse used. For non-exchange traded instruments, credit risk may occur when there is a gain in the fair value of the financial instrument and the counterparty fails to perform according to the terms of the contract and/or when the collateral proves to be of insufficient value. See additional discussion regarding master netting agreements and collateral posting requirements later in this note under the heading “Master Netting and Similar Agreements.” Market risk represents the potential loss due to the decrease in the value of a financial instrument caused primarily by changes in interest rates or the prices of debt instruments. FHN manages market risk by establishing and monitoring limits on the types and degree of risk that may be undertaken. FHN continually measures this risk through the use of models that measure value-at-risk and earnings-at-risk.

Derivative Instruments. FHN enters into various derivative contracts both in a dealer capacity to facilitate customer transactions and as a risk management tool. Where contracts have been created for customers, FHN enters into upstream transactions with dealers to offset its risk exposure. Contracts with dealers that require central clearing are novated to a clearing agent who becomes FHN's counterparty. Derivatives are also used as a risk management tool to hedge FHN’s exposure to changes in interest rates or other defined market risks.

Forward contracts are over-the-counter contracts where two parties agree to purchase and sell a specific quantity of a financial instrument at a specified price, with delivery or settlement at a specified date. Futures contracts are exchange-traded contracts where two parties agree to purchase and sell a specific quantity of a financial instrument at a specified price, with delivery or settlement at a specified date. Interest rate option contracts give the purchaser the right, but not the obligation, to buy or sell a specified quantity of a financial instrument, at a specified price, during a specified period of time. Caps and floors are options that are linked to a notional principal amount and an underlying indexed interest rate. Interest rate swaps involve the exchange of interest payments at specified intervals between two parties without the exchange of any underlying principal. Swaptions are options on interest rate swaps that give the purchaser the right, but not the obligation, to enter into an interest rate swap agreement during a specified period of time.

Trading Activities

FHN’s fixed incomesegment trades U.S. Treasury, U.S. Agency, mortgage-backed, corporate and municipal fixed income securities, and other securities for distribution to customers. When these securities settle on a delayed basis, they are considered forward contracts. Fixed income also enters into interest rate contracts, including caps, swaps, and floors, for its customers. In addition, fixed income enters into futures and option contracts to economically hedge interest rate risk associated with a portion of its securities inventory. These transactions are measured at fair value, with changes in fair value recognized currently in fixed income noninterest income. Related assets and liabilities are recorded on the Consolidated Condensed Statements of Condition as Derivative assets and Derivativeliabilities. The FTN Financial Risk Committee and the Credit Risk Management Committee collaborate to mitigate credit risk related to these transactions. Credit risk is controlled through credit approvals, risk control limits, and ongoing monitoring procedures. Total trading revenues were $42.7 million and $57.6 million for the three months ended March 31, 2017 and 2016, respectively. Trading revenues are inclusive of both derivative and non-derivative financial instruments, and are included in fixed income noninterest income.

The following tables summarize FHN’s derivatives associated with fixed income trading activities as of March 31, 2017 and December 31, 2016:
	March 31, 2017
(Dollars in thousands)	Notional		Assets			Liabilities
Customer Interest Rate Contracts	$	1,743,855		$	34,060		$	15,510
Offsetting Upstream Interest Rate Contracts		1,743,855			15,258			31,677
Option Contracts Purchased		60,000			86			-
Forwards and Futures Purchased		3,804,024			11,817			5,230
Forwards and Futures Sold		3,817,997			5,410			13,135

	December 31, 2016
(Dollars in thousands)	Notional		Assets			Liabilities
Customer Interest Rate Contracts	$	1,697,992		$	39,495		$	14,996
Offsetting Upstream Interest Rate Contracts		1,697,992			14,996			39,495
Option Contracts Purchased		17,500			63			-
Option Contracts Written		5,000			-			8
Forwards and Futures Purchased		2,916,750			6,257			26,659
Forwards and Futures Sold		3,085,396			27,330			6,615

Interest Rate Risk Management

FHN’s ALCO focuses on managing market risk by controlling and limiting earnings volatility attributable to changes in interest rates. Interest rate risk exists to the extent that interest-earning assets and interest-bearing liabilities have different maturity or repricing characteristics. FHN uses derivatives, primarily swaps, that are designed to moderate the impact on earnings as interest rates change. Interest paid or received for swaps utilized by FHN to hedge the fair value of long term debt is recognized as an adjustment of the interest expense of the liabilities whose risk is being managed. FHN’s interest rate risk management policy is to use derivatives to hedge interest rate risk or market value of assets or liabilities, not to speculate. In addition, FHN has entered into certain interest rate swaps and caps as a part of a product offering to commercial customers that includes customer derivatives paired with upstream offsetting market instruments that, when completed, are designed to mitigate interest rate risk. These contracts do not qualify for hedge accounting and are measured at fair value with gains or losses included in current earnings in Noninterest expense on the Consolidated Condensed Statements of Income.

FHN has designated a derivative transaction in a hedging strategy to manage interest rate risk on $400.0million of senior debt issued by FTBNA which matures in December 2019. This qualifies for hedge accounting under ASC 815-20 using the long-haul method. FHN entered into a pay floating, receive fixed interest rate swap to hedge the interest rate risk of the senior debt. The balance sheet impact of this swap was $.3 million and $1.6 million in Derivative assets as of March 31, 2017 and December 31, 2016, respectively. There was an insignificant level of ineffectiveness related to this hedge.

FHN has designated a derivative transaction in a hedging strategy to manage interest rate risk on $500.0 million of senior debt which matures in December 2020. This qualifies for hedge accounting under ASC 815-20 using the long-haul method. FHN entered into a pay floating, receive fixed interest rate swap to hedge the interest rate risk of the senior debt. The balance sheet impact of this swap was $.5 million in Derivative assets as of March 31, 2017 and $7.3 million in Derivative liabilities as of December 31, 2016. There was an insignificant level of ineffectiveness related to this hedge.

The following tables summarize FHN’s derivatives associated with interest rate risk management activities as of March 31, 2017 and December 31, 2016:
		March 31, 2017
(Dollars in thousands)		Notional		Assets			Liabilities
Customer Interest Rate Contracts Hedging
Hedging Instruments and Hedged Items:
	Customer Interest Rate Contracts	$	1,450,711		$	15,401	$	15,388
	Offsetting Upstream Interest Rate Contracts		1,450,711			14,053		14,277
Debt Hedging
Hedging Instruments:
	Interest Rate Swaps	$	900,000		$	749		N/A
Hedged Items:
	Term Borrowings		N/A			N/A	$	900,000	(a)

		December 31, 2016
(Dollars in thousands)		Notional		Assets			Liabilities
Customer Interest Rate Contracts Hedging
Hedging Instruments and Hedged Items:
	Customer Interest Rate Contracts	$	1,357,920		$	17,566	$	14,277
	Offsetting Upstream Interest Rate Contracts		1,357,920			14,277		18,066
Debt Hedging
Hedging Instruments:
	Interest Rate Swaps	$	900,000		$	1,628	$	7,276
Hedged Items:
	Term Borrowings		N/A			N/A	$	900,000	(a)

Represents par value of term borrowings being hedged.

The following table summarizes gains/(losses) on FHN's derivatives associated with interest rate risk management activities for the three months ended March 31, 2017 and 2016:
		March 31, 2017			March 31, 2016
(Dollars in thousands)		Gains/(Losses)			Gains/(Losses)
Customer Interest Rate Contracts Hedging
Hedging Instruments and Hedged Items:
	Customer Interest Rate Contracts (a)	$	(3,276)	$	12,559
	Offsetting Upstream Interest Rate Contracts (a)		3,276		(12,559)
Debt Hedging
Hedging Instruments:
	Interest Rate Swaps (a)	$	(2,800)	$	17,037
Hedged Items:
	Term Borrowings (a) (b)		2,733		(16,745)

• Gains/losses included in the All other expense section of the Consolidated Condensed Statements of Income.
• Represents gains and losses attributable to changes in fair value due to interest rate risk as designated in ASC 815-20 hedging relationships.

In first quarter 2016, FHN entered into a pay floating, receive fixed interest rate swap in a hedging strategy to manage its exposure to the variability in cash flows related to the interest payments for the following five years on $250 million principal of debt instruments, which primarily consist of held-to-maturity trust preferred loans that have variable interest payments based on 3-month LIBOR. In first quarter 2017, FHN initiated cash flow hedges of $650 million notional amount that have durations between three and seven years. The debt instruments primarily consist of held-to-maturity commercial loans that have variable interest payments based on 1-month LIBOR. These qualify for hedge accounting as cash flow hedges under ASC 815-20. Changes in the fair value of these derivatives are recorded as a component of AOCI, to the extent that the hedging relationships are effective. Amounts are reclassified from AOCI to earnings as the hedged cash flows affect earnings. FTB measures the ineffectiveness using the Hypothetical Derivative Method. AOCI is adjusted to an amount that reflects the lesser of either the cumulative change in fair value of the swaps or the cumulative change in the fair value of the hypothetical derivative instruments.To the extent that any ineffectiveness exists in the hedge relationships, the amounts are recorded in current period earnings. Interest paid or received for these swaps is recognized as an adjustment to interest income of the assets whose cash flows are being hedged.

The following tables summarize FHN’s derivative activities associated with cash flow hedges as of March 31, 2017 and December 31, 2016:
		March 31, 2017
(Dollars in thousands)		Notional		Assets			Liabilities
Cash Flow Hedges
Hedging Instruments:
	Interest Rate Swaps	$	900,000		$	1,286		N/A
Hedged Items:
	Variability in Cash Flows Related to Debt Instruments (Primarily Loans)		N/A		$	900,000		N/A

		December 31, 2016
(Dollars in thousands)		Notional		Assets			Liabilities
Cash Flow Hedges
Hedging Instruments:
	Interest Rate Swaps	$	250,000			N/A	$	2,045
Hedged Items:
	Variability in Cash Flows Related to Debt Instruments (Primarily Loans)		N/A		$	250,000		N/A

The following table summarizes gains/(losses) on FHN's derivatives associated with cash flow hedges for the three months ended March 31, 2017 and 2016:
		March 31, 2017			March 31, 2016
(Dollars in thousands)		Gains/(Losses)			Gains/(Losses)
Cash Flow Hedges
Hedging Instruments:
	Interest Rate Swaps (a) (b)	$	(3,101)	$	5,618
Hedged Items:
	Variability in Cash Flows Related to Debt Instruments (Primarily Loans)		N/A		N/A

• Amount represents the pre-tax gains/(losses) included within AOCI.
• Includes approximately $1.5 million of losses expected to be reclassified into earnings in the next twelve months.

FHN hedges held-to-maturity trust preferred loans which have an initial fixed rate term before conversion to a floating rate. FHN has entered into pay fixed, receive floating interest rate swaps to hedge the interest rate risk associated with this initial term. Interest paid or received for these swaps isrecognized as an adjustment of the interest income of the assets whose risk is being hedged. Basis adjustments remaining at the end of the hedge term are being amortized as an adjustment to interest income over the remaining life of the loans. Gains or losses are included in Other income and commissions on the Consolidated Condensed Statements of Income. These hedges expire in third quarter 2017.

The following tables summarize FHN’s derivative activities associated with held-to-maturity trust preferred loans as of March 31, 2017 and December 31, 2016:
		March 31,2017
(Dollars in thousands)		Notional			Assets				Liabilities
Loan Portfolio Hedging
Hedging Instruments:
	Interest Rate Swaps		$	6,500			N/A			$	134
Hedged Items:
	Trust Preferred Loans (a)			N/A		$	6,500	(b)			N/A

		December 31, 2016
(Dollars in thousands)		Notional			Assets				Liabilities
Loan Portfolio Hedging
Hedging Instruments:
	Interest Rate Swaps		$	6,500			N/A			$	208
Hedged Items:
	Trust Preferred Loans (a)			N/A		$	6,500	(b)			N/A

• Assets included in the Loans, net of unearned income section of the Consolidated Condensed Statements of Condition.
• Represents principal balance being hedged.

The following table summarizes gains/(losses) on FHN's derivatives associated with held-to-maturity trust preferred loans for the three months ended March 31, 2017 and 2016:
		March 31, 2017			March 31, 2016
(Dollars in thousands)		Gains/(Losses)			Gains/(Losses)
Loan Portfolio Hedging
Hedging Instruments:
	Interest Rate Swaps	$	74	$	43
Hedged Items:
	Trust Preferred Loans (a)	$	(74)	$	(42)

Represents gains and losses attributable to changes in fair value due to interest rate risk as designated in ASC 815-20 hedging relationships.

Other Derivatives

In conjunction with the sales of a portion of its Visa Class B shares, FHN and the purchaser entered into derivative transactions whereby FHN will make or receive cash payments whenever the conversion ratio of the Visa Class B shares into Visa Class A shares is adjusted. As of March 31, 2017and December 31, 2016, the derivative liabilities associated with the sales of Visa Class B shares were $6.0 million and $6.2 million, respectively. See the Visa Matters section ofNote 10 – Contingencies and Other Disclosures for more information regarding FHN’s Visa shares.

FHN utilizes cross currency swaps and cross currency interest rate swaps to economically hedge its exposure to foreign currency risk and interest rate risk associated with non-U.S. dollar denominated loans. As of March 31, 2017 and December 31, 2016, these loans were valued at $1.9 million and $3.8 million, respectively. The balance sheet amount and the gains/losses associated with these derivatives were not significant.

Master Netting and Similar Agreements

As previously discussed, FHN uses master netting agreements, mutual margining agreements and collateral posting requirements to minimize credit risk on derivative contracts. Master netting and similar agreements are used when counterparties have multiple derivatives contracts that allow for a “right of setoff,” meaning that a counterparty may net offsetting positions and collateral with the same counterparty under the contract to determine a net receivable or payable. The following discussion provides an overview of these arrangements which may vary due to the derivative type and market in which a derivative transaction is executed.

Interest rate derivatives are subject to agreements consistent with standard agreement forms of the International Swap and Derivatives Association (“ISDA”).Currently, all interest rate derivative contracts are entered into as over-the-counter transactions and collateral posting requirements are based on the net asset or liability position with each respective counterparty. For contracts that require central clearing, novation to a counterparty with access to a clearinghouse occurs and margin is posted.Cash margin received (posted) that is considered settlements for the derivative contracts is included in the respective derivative asset (liability) value. Cash margin that is considered collateral received (posted) for interest rate derivatives is recognized as a liability (asset) on FHN’s Consolidated Condensed Statements of Condition.

Interest rate derivatives with customers that are smaller financial institutions typically require posting of collateral by the counterparty to FHN. This collateral is subject to a threshold with daily adjustments based upon changes in the level or fair value of the derivative position. Positions and related collateral can be netted in the event of default. Collateral pledged by a counterparty is typically cash or securities. The securities pledged as collateral are not recognized within FHN's Consolidated Condensed Statements of Condition. Interest rate derivatives associated with lending arrangements share the collateral with the related loan(s). The derivative and loan positions may be netted in the event of default.For disclosure purposes, the entire collateral amount is allocated to the loan.

Interest rate derivatives with larger financial institutions entered into prior to required central clearing typically contain provisions whereby the collateral posting thresholds under the agreements adjust based on the credit ratings of both counterparties. If the credit rating of FHN and/or FTBNA is lowered, FHN could be required to post additional collateral with the counterparties. Conversely, if the credit rating of FHN and/or FTBNA is increased, FHN could have collateral released and be required to post less collateral in the future. Also, if a counterparty's credit ratings were to decrease, FHN and/or FTBNA could require the posting of additional collateral; whereas if a counterparty's credit ratings were to increase, the counterparty could require the release of excess collateral. Collateral for these arrangements is adjusted daily based on changes in the net fair value position with each counterparty.

The net fair value, determined by individual counterparty, of all derivative instruments with adjustable collateral posting thresholds was $31.3million of assets and $44.1million of liabilities on March 31,2017, and $35.9 million of assets and $49.0million of liabilities on December 31, 2016. As of March 31, 2017 and December 31, 2016, FHN had received collateral of $121.2 million and $137.6 million and posted collateral of $33.0 million and $39.3 million, respectively, in the normal course of business related to these agreements.

Certain agreements entered into prior to required central clearing also contain accelerated termination provisions, inclusive of the right of offset, if a counterparty’s credit rating falls below a specified level. If a counterparty's debt rating (including FHN's and FTBNA’s) were to fall below these minimums, these provisions would be triggered, and the counterparties could terminate the agreements and require immediate settlement of all derivative contracts under the agreements. The net fair value, determined by individual counterparty, of all derivative instruments with credit-risk-related contingent accelerated termination provisions was $30.7 million of assets and $19.2 million of liabilities on March 31, 2017, and $35.9 million of assets and $19.6 million of liabilities on December 31, 2016. As of March 31, 2017 and December 31, 2016, FHN had received collateral of $120.6 million and $137.5 million and posted collateral of $10.0 million and $12.9 million, respectively, in the normal course of business related to these contracts.

FHN’s fixed income segment buys and sells various types of securities for its customers. When these securities settle on a delayed basis, they are considered forward contracts, and are generally not subject to master netting agreements. For futures and options, FHN transacts through a third party, and the transactions are subject to margin and collateral maintenance requirements.In the event of default, open positions can be offset along with the associated collateral.

For this disclosure, FHN considers the impact of master netting and other similar agreements which allow FHN to settle all contracts with a single counterparty on a net basis and to offset the net derivative asset or liability position with the related securities and cash collateral. The application of the collateral cannot reduce the net derivative asset or liability position below zero, and therefore any excess collateral is not reflected in the following tables.

The following table provides details of derivative assets and collateral received as presented on the Consolidated Condensed Statements of Condition as of March 31, 2017 and December 31, 2016:
								Gross amounts not offset in the
								Statements of Condition
			Gross amounts		Net amounts of		Derivative
	Gross amounts		offset in the		assets presented		liabilities
	of recognized		Statements of		in the Statements		available for		Collateral
(Dollars in thousands)	assets		Condition		of Condition (a)		offset		Received		Net amount
Derivative assets:
March 31, 2017 (b)	$	80,807	$	-	$	80,807	$	(18,674)	$	(46,189)	$	15,944
December 31, 2016 (b)		87,962		-		87,962		(25,953)		(52,888)		9,121

• Included in Derivative assets on the Consolidated Condensed Statements of Condition. As of March 31, 2017 and December 31, 2016, $17.3 million and $33.7 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.
• Amountsare comprised entirely of interest rate derivative contracts.

The following table provides details of derivative liabilities and collateral pledged as presented on the Consolidated Condensed Statements of Condition as of March 31, 2017 and December 31, 2016:
									Gross amounts not offset in the
									Statements of Condition
			Gross amounts			Net amounts of
	Gross amounts		offset in the		liabilities presented			Derivative
	of recognized		Statements of			in the Statements		assets available		Collateral
(Dollars in thousands)	liabilities		Condition			of Condition (a)		for offset		pledged		Net amount
Derivative liabilities:
March 31, 2017 (b)	$	76,986	$	-		$	76,986	$	(18,674)	$	(55,378)	$	2,934
December 31, 2016 (b)		96,363		-			96,363		(25,953)		(60,746)		9,664

• Included in Derivative liabilities on the Consolidated Condensed Statements of Condition. As ofMarch 31,2017 and December 31, 2016, $24.4 million and $39.5 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.
• Amounts are comprised entirely of interest rate derivative contracts.

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Master Netting And Similar Agreements

3 Months Ended

Mar. 31, 2017

Master Netting Agreements And Similar Arrangements [Abstract]

Master Netting Agreements And Similar Arrangements

Note 15 –Master Netting and Similar Agreements - Repurchase, Reverse Repurchase, and Securities Borrowing Transactions

For repurchase, reverse repurchase and securities borrowing transactions, FHN and each counterparty have the ability to offset all open positions and related collateral in the event of default.Due to the nature of these transactions, the value of the collateral for each transaction approximates the value of the corresponding receivable or payable. For repurchase agreements through FHN’s fixed income business (Securities purchased under agreements to resell and Securities sold under agreements to repurchase), transactions are collateralized by securities which are delivered on the settlement date and are maintained throughout the term of the transaction. For FHN’s repurchase agreements through banking activities (Securities sold under agreements to repurchase), securities are typically pledged at settlement and not released until maturity. For asset positions, the collateral is not included on FHN’s Consolidated Condensed Statements of Condition. For liability positions, securities collateral pledged by FHN isgenerally represented within FHN’s trading or available-for-sale securities portfolios.

For this disclosure, FHN considers the impact of master netting and other similar agreements that allow FHN to settle all contracts with a single counterparty on a net basis and to offset the net asset or liability position with the related securities collateral. The application of the collateral cannot reduce the net asset or liability position below zero, and therefore any excess collateral is not reflected in the tables below.

The following table provides details of Securities purchased under agreements to resell as presented on the Consolidated Condensed Statements of Condition and collateral pledged by counterparties as of March 31, 2017 and December 31, 2016:

								Gross amounts not offset in the
								Statements of Condition
			Gross amounts		Net amounts of		Offsetting		Securities collateral
	Gross amounts		offset in the		assets presented		securities sold		(not recognized on
	of recognized		Statements of		in the Statements		under agreements		FHN's Statements
(Dollars in thousands)	assets		Condition		of Condition		to repurchase		of Condition)		Net amount
Securities purchased under agreements to resell:
March 31, 2017	$	835,222	$	-	$	835,222	$	(150)	$	(828,596)	$	6,476
December 31, 2016		613,682		-		613,682		(1,628)		(603,813)		8,241

The following table provides details of Securities sold under agreements to repurchase as presented on the Consolidated Condensed Statements of Condition and collateral pledged by FHN as of March 31, 2017 and December 31, 2016:

								Gross amounts not offset in the
								Statements of Condition
			Gross amounts		Net amounts of		Offsetting
	Gross amounts		offset in the		liabilities presented		securities
	of recognized		Statements of		in the Statements		purchased under		Securities
(Dollars in thousands)	liabilities		Condition		of Condition		agreements to resell		Collateral		Net amount
Securities sold under agreements to repurchase:
March 31, 2017	$	406,354	$	-	$	406,354	$	(150)	$	(406,185)	$	19
December 31, 2016		453,053		-		453,053		(1,628)		(451,414)		11

Due to the short duration of Securities sold under agreements to repurchase and the nature of collateral involved, the risks associated with these transactions are considered minimal. The following tables provide details, by collateral type, of the remaining contractual maturity of Securities sold under agreements to repurchase as of March 31, 2017 and December 31, 2016:
	March 31, 2017
	Overnight and
(Dollars in thousands)	Continuous		Up to 30 Days		Total
Securities sold under agreements to repurchase:
U.S. treasuries	$	19,344	$	-	$	19,344
Government agency issued MBS		345,156		-		345,156
Government agency issued CMO		29,383		12,471		41,854
Total Securities sold under agreements to repurchase	$	393,883	$	12,471	$	406,354
	December 31, 2016
	Overnight and
(Dollars in thousands)	Continuous		Up to 30 Days		Total
Securities sold under agreements to repurchase:
U.S. treasuries	$	14,864	$	-	$	14,864
Government agency issued MBS		421,771		-		421,771
Government agency issued CMO		-		16,418		16,418
Total Securities sold under agreements to repurchase	$	436,635	$	16,418	$	453,053

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Fair Value Of Assets And Liabilities

3 Months Ended

Mar. 31, 2017

Fair Value Disclosures [Abstract]

Fair Value Of Assets And Liabilities

Note 16 – Fair Value of Assets & Liabilities

FHN groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. This hierarchy requires FHN to maximize the use of observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. Each fair value measurement is placed into the proper level based on the lowest level of significant input. These levels are:

• Level 1 - Valuation is based upon quoted prices for identical instruments traded in active markets.
• Level 2 - Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market.
• Level 3 - Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models, and similar techniques.

Transfers between fair value levels are recognized at the end of the fiscal quarter in which the associated change in inputs occurs.

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, 2017:
			March 31, 2017
(Dollars in thousands)			Level 1		Level 2		Level 3		Total
Trading securities - fixed income:
	U.S. treasuries		$	-	$	107,264	$	-	$	107,264
	Government agency issued MBS			-		323,058		-		323,058
	Government agency issued CMO			-		213,949		-		213,949
	Other U.S. government agencies			-		88,613		-		88,613
	States and municipalities			-		83,872		-		83,872
	Corporate and other debt			-		346,743		5		346,748
	Equity, mutual funds, and other			-		1,476		-		1,476
		Total trading securities - fixed income		-		1,164,975		5		1,164,980
Trading securities - mortgage banking				-		-		2,330		2,330
Loans held-for-sale				-		1,224		21,221		22,445
Securities available-for-sale:
	U.S. treasuries			-		100		-		100
	Government agency issued MBS			-		2,159,922		-		2,159,922
	Government agency issued CMO			-		1,592,311		-		1,592,311
	Equity, mutual funds, and other			25,221		-		-		25,221
		Total securities available-for-sale		25,221		3,752,333		-		3,777,554
Other assets:
	Deferred compensation assets			34,109		-		-		34,109
	Derivatives, forwards and futures			17,227		-		-		17,227
	Derivatives, interest rate contracts			-		80,893		-		80,893
		Total other assets		51,336		80,893		-		132,229
		Total assets	$	76,557	$	4,999,425	$	23,556	$	5,099,538
Trading liabilities - fixed income:
	U.S. treasuries		$	-	$	657,059	$	-	$	657,059
	States and municipalities			-		11,048		-		11,048
	Corporate and other debt			-		180,083		-		180,083
		Total trading liabilities - fixed income		-		848,190		-		848,190
Other liabilities:
	Derivatives, forwards and futures			18,365		-		-		18,365
	Derivatives, interest rate contracts			-		76,986		-		76,986
	Derivatives, other			-		46		5,950		5,996
		Total other liabilities		18,365		77,032		5,950		101,347
		Total liabilities	$	18,365	$	925,222	$	5,950	$	949,537

The following table presents the balance of assets and liabilities measured at fair value on a recurring basis as of December 31, 2016:
			December 31, 2016
(Dollars in thousands)			Level 1		Level 2		Level 3		Total
Trading securities - fixed income:
	U.S. treasuries		$	-	$	146,988	$	-	$	146,988
	Government agency issued MBS			-		256,611		-		256,611
	Government agency issued CMO			-		150,058		-		150,058
	Other U.S. government agencies			-		52,314		-		52,314
	States and municipalities			-		60,351		-		60,351
	Corporate and other debt			-		227,934		5		227,939
	Equity, mutual funds, and other			-		242		-		242
		Total trading securities - fixed income		-		894,498		5		894,503
Trading securities - mortgage banking				-		-		2,568		2,568
Loans held-for-sale				-		2,345		21,924		24,269
Securities available-for-sale:
	U.S. treasuries			-		100		-		100
	Government agency issued MBS			-		2,208,687		-		2,208,687
	Government agency issued CMO			-		1,547,958		-		1,547,958
	Equity, mutual funds, and other			25,249		-		-		25,249
		Total securities available-for-sale		25,249		3,756,745		-		3,781,994
Other assets:
	Mortgage servicing rights			-		-		985		985
	Deferred compensation assets			32,840		-		-		32,840
	Derivatives, forwards and futures			33,587		-		-		33,587
	Derivatives, interest rate contracts			-		88,025		-		88,025
	Derivatives, other			-		42		-		42
		Total other assets		66,427		88,067		985		155,479
		Total assets	$	91,676	$	4,741,655	$	25,482	$	4,858,813
Trading liabilities - fixed income:
	U.S. treasuries		$	-	$	381,229	$	-	$	381,229
	Other U.S. government agencies			-		844		-		844
	Corporate and other debt			-		179,775		-		179,775
		Total trading liabilities - fixed income		-		561,848		-		561,848
Other liabilities:
	Derivatives, forwards and futures			33,274		-		-		33,274
	Derivatives, interest rate contracts			-		96,371		-		96,371
	Derivatives, other			-		7		6,245		6,252
		Total other liabilities		33,274		96,378		6,245		135,897
		Total liabilities	$	33,274	$	658,226	$	6,245	$	697,745

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, 2017 and 2016, on a recurring basis are summarized as follows:
			Three Months Ended March 31, 2017
			Trading			Loans held-				Net derivative
(Dollars in thousands)			securities			for-sale				liabilities
Balance on January 1, 2017			$	2,573			$	21,924			$	(6,245)
	Total net gains/(losses) included in:
		Net income		17				922				(1)
	Purchases			-				32				-
	Settlements			(255)				(1,574)				296
	Net transfers into/(out of) Level 3			-				(83)	(b)			-
Balance on March 31, 2017			$	2,335			$	21,221			$	(5,950)
Net unrealized gains/(losses) included in net income			$	(27)	(a)		$	922	(a)		$	(1)	(c)

			Three Months Ended March 31, 2016
										Securities			Mortgage
			Trading			Loans held-				available-			servicing			Net derivative
(Dollars in thousands)			securities			for-sale				for-sale			rights, net			liabilities
Balance on January 1, 2016			$	4,377			$	27,418			$	1,500		$	1,841		$	(4,810)
	Total net gains/(losses) included in:
		Net income		147				342				-			-			(109)
	Purchases			-				148				-			-			-
	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)

• Primarily included in mortgage banking income on the Consolidated Condensed Statements of Income.
• Transfers out of loans held-for-sale level 3 measured on a recurring basis generally reflect movements into real estate acquired by foreclosure (level 3 nonrecurring).
• Included in Other expense.

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 lower of cost or market (“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, 2017, and December 31, 2016, respectively, the following tables provide the level of valuation assumptions used to determine each adjustment and the related carrying value.

	Carrying value at March 31, 2017
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Loans held-for-sale - SBAs	$	-	$	3,476	$	-	$	3,476
Loans held-for-sale - first mortgages		-		-		606		606
Loans, net of unearned income (a)		-		-		30,838		30,838
Real estate acquired by foreclosure (b)		-		-		10,259		10,259
Other assets (c)		-		-		28,667		28,667

	Carrying value at December 31, 2016
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Loans held-for-sale - SBAs	$	-	$	4,286	$	-	$	4,286
Loans held-for-sale - first mortgages		-		-		638		638
Loans, net of unearned income (a)		-		-		31,070		31,070
Real estate acquired by foreclosure (b)		-		-		11,235		11,235
Other assets (c)		-		-		29,609		29,609

• 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.
• Represents the fair valueof 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.

For assets measured on a nonrecurring basis which were still held on the consolidated balance sheet at period end, the following table provides information about the fair value adjustments recorded during the three months ended March 31, 2017 and 2016:
	Net gains/(losses)
	Three months ended March 31,
(Dollars in thousands)	2017		2016
Loans held-for-sale - SBAs	$	(33)	$	-
Loans held-for-sale - first mortgages		3		5
Loans, net of unearned income (a)		484		(4,672)
Real estate acquired by foreclosure (b)		(445)		(536)
Other assets (c)		(942)		(706)
	$	(933)	$	(5,909)

• Write-downs on these loans are recognized as part of provision for loan losses.
• Represents 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.

In first quarter 2016, FHN’s Regional Banking segment recognized $3.7 million of impairments on long-lived assets associated with efforts to more efficiently utilize its bank branch locations. The affected branch locations represented a mixture of owned and leased sites. The fair values of owned sites were determined using estimated sales prices from appraisals less estimated costs to sell. The fair values of leased sites were determined using a discounted cash flow approach, based on the revised estimated useful lives of the related assets. Both measurement methodologies are considered Level 3 valuations.

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, 2017 and December 31, 2016:
(Dollars in Thousands)
	Fair Value at
Level 3 Class	March 31, 2017		Valuation Techniques	Unobservable Input	Values Utilized
Loans held-for-sale - residential real estate		21,827	Discounted cash flow	Prepayment speeds - First mortgage	2% - 12%
				Prepayment speeds - HELOC	3% - 15%
				Foreclosure losses	50% - 70%
				Loss severity trends - First mortgage	5% - 50% of UPB
				Loss severity trends - HELOC	15% - 100% of UPB
Derivative liabilities, other		5,950	Discounted cash flow	Visa covered litigation resolution amount	$4.4 billion - $5.2 billion
				Probability of resolution scenarios	10% - 30%
				Time until resolution	21 - 51 months
Loans, net of unearned income (a)		30,838	Appraisals from comparable properties	Marketability adjustments for specific properties	0% - 10% of appraisal
			Other collateral valuations	Borrowing base certificates adjustment	20% - 50% of gross value
				Financial Statements/Auction values adjustment	0% - 25% of reported value
Real estate acquired by foreclosure (b)		10,259	Appraisals from comparable properties	Adjustment for value changes since appraisal	0% - 10% of appraisal
Other assets (c)		28,667	Discounted cash flow	Adjustments to current sales yields for specific properties	0% - 15% adjustment to yield
			Appraisals from comparable properties	Marketability adjustments for specific properties	0% - 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 Class	December 31, 2016		Valuation Techniques	Unobservable Input	Values Utilized
Loans held-for-sale - residential real estate		22,562	Discounted cash flow	Prepayment speeds - First mortgage	2% - 13%
				Prepayment speeds - HELOC	3% - 15%
				Foreclosure Losses	50% - 70%
				Loss severity trends - First mortgage	5% - 50% of UPB
				Loss severity trends - HELOC	15% - 100% of UPB
Derivative liabilities, other		6,245	Discounted cash flow	Visa covered litigation resolution amount	$4.4 billion - $5.2 billion
				Probability of resolution scenarios	10% - 30%
				Time until resolution	24 - 54 months
Loans, net of unearned income (a)		31,070	Appraisals from comparable properties	Marketability adjustments for specific properties	0% - 10% of appraisal
			Other collateral valuations	Borrowing base certificates adjustment	20% - 50% of gross value
				Financial Statements/Auction values adjustment	0% - 25% of reported value
Real estate acquired by foreclosure (b)		11,235	Appraisals from comparable properties	Adjustment for value changes since appraisal	0% - 10% of appraisal
Other assets (c)		29,609	Discounted cash flow	Adjustments to current sales yields for specific properties	0% - 15% adjustment to yield
			Appraisals from comparable properties	Marketability adjustments for specific properties	0% - 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.

Loans held-for-sale. Foreclosure losses and prepayment rates are significant unobservable inputs used in the fair value measurement of FHN’s residential real estate loans held-for-sale. Loss severity trends are also assessed to evaluate the reasonableness of fair value estimates resulting from discounted cash flows methodologies as well as to estimate fair value for newly repurchased loansand loans that are near foreclosure. Significant increases (decreases) in any of these inputs in isolation would result in significantly lower (higher) fair value measurements.All observable and unobservable inputs are re-assessed quarterly. Fair value measurements are reviewed at least quarterly by FHN’s Corporate Accounting Department.

Derivative liabilities.In conjunction with the sales of portions of its Visa Class B shares, FHN and the purchaser entered into derivative transactions whereby FHN will make, or receive, cash payments whenever the conversion ratio of the Visa Class B shares into Visa Class A shares is adjusted. FHN uses a discounted cash flow methodology in order to estimate the fair value of FHN’s derivative liabilities associated with its prior sales of Visa Class B shares. The methodology includes estimation of both the resolution amount for Visa’s Covered Litigation matters as well as the length of time until the resolution occurs. Significant increases (decreases) in either of these inputs in isolation would result in significantly higher (lower) fair value measurements for the derivative liabilities. Additionally, FHN performs a probability weighted multiple resolution scenario to calculate the estimated fair value of these derivative liabilities. Assignment of higher (lower) probabilities to the larger potential resolution scenarios would result in an increase (decrease) in the estimated fair value of the derivative liabilities. Since this estimation process requires application of judgment in developing significant unobservable inputs used to determine the possible outcomes and the probability weighting assigned to each scenario, these derivatives have been classified within Level 3 in fair value measurements disclosures. The valuation inputs and process are discussed with senior and executive management when significant events affecting the estimate of fair value occur. Inputs are compared to information obtained from the public issuances and filings of Visa, Inc. as well as public information released by other participants in the applicable litigation matters.

Loans, net of unearned income and Real estate acquired by foreclosure. Collateral-dependent loans and Real estate acquired by foreclosure are primarily valued using appraisals based on sales of comparable properties in the same or similar markets. Multiple appraisal firms are utilized to ensure that estimated values are consistent between firms. This process occurs within FHN’s Credit Risk Management (commercial) and Default Servicing functions (primarily consumer). The Credit Risk Management Committee reviews dispositions and additions of foreclosed assets annually. Back testing is performed during the year through comparison to ultimate disposition values. Other collateral (receivables, inventory, equipment, etc.) is valued through borrowing base certificates, financial statements and/or auction valuations. These valuations are discounted based on the quality of reporting, knowledge of the marketability/collectability of the collateral and historical disposition rates.

Other assets – tax credit investments.The estimated fair value of tax credit investments accounted for under the equity method is generally determined in relation to the yield (i.e., future tax credits to be received) an acquirer of these investments would expect in relation to the yields experienced on current new issue and/or secondary market transactions. Thus, as tax credits are recognized, the future yield to a market participant is reduced, resulting in consistent impairment of the individual investments. Individual investments are reviewed for impairment quarterly, which may include the consideration of additional marketability discounts related to specific investments which typically includes consideration of the underlying property’s appraised value. Unusual valuation adjustments and the associated triggering events are discussed with senior and executive management when appropriate. A portfolio review is conducted annually, with the assistance of a third party, to assess the reasonableness of current valuations.

Fair Value Option

FHN has elected the fair value option on a prospective basis for almost all types of mortgage loans originated for sale purposes under the Financial Instruments Topic (“ASC 825”). FHN determined that the election reduces certain timing differences and better matches changes in the value of such loans with changes in the value of derivatives and forward delivery commitments used as economic hedges for these assets at the time of election.

Repurchased loans are recognized within loans held-for-sale at fair value at the time of repurchase, which includes consideration of the credit status of the loans and the estimated liquidation value. FHN has elected to continue recognition of these loans at fair value in periods subsequent to reacquisition. Due to the credit-distressed nature of the vast majority of repurchased loans and the related loss severities experienced upon repurchase, FHN believes that the fair value election provides a more timely recognition of changes in value for these loans that occur subsequent to repurchase. Absent the fair value election, these loans would be subject to valuation at the LOCOM value, which would prevent subsequent values from exceeding the initial fair value, determined at the time of repurchase, but would require recognition of subsequent declines in value. Thus, the fair value election provides for a more timely recognition of any potential future recoveries in asset values while not affecting the requirement to recognize subsequent declines in value.

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, 2017
(Dollars in thousands)		Fair value carrying amount		Aggregate unpaid principal		Fair value carrying amount less aggregate unpaid principal
Residential real estate loans held-for-sale reported at fair value:
	Total loans	$	22,444	$	32,427		$	(9,983)
	Nonaccrual loans		6,689		12,305			(5,616)
	Loans 90 days or more past due and still accruing		120		158			(38)
		December 31, 2016
(Dollars in thousands)		Fair value carrying amount		Aggregate unpaid principal		Fair value carrying amount less aggregate unpaid principal
Residential real estate loans held-for-sale reported at fair value:
	Total loans	$	24,269	$	35,262		$	(10,993)
	Nonaccrual loans		6,775		12,910			(6,135)
	Loans 90 days or more past due and still accruing		211		331			(120)

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)			2017		2016
Changes in fair value included in net income:
	Mortgage banking noninterest income
		Loans held-for-sale	$	922	$	342

For the three months ended March 31, 2017, and 2016, the amounts for residential real estate loans held-for-sale include gains of $.2 million and $.1 million, respectively, in pretax earnings that are attributable to changes in instrument-specific credit risk. The portion of the fair value adjustments related to credit risk was determined based on estimated default rates and estimated loss severities. Interest income on residential real estate loans held-for-sale measured at fair value is calculated based on the note rate of the loan and is recorded in the interest income section of the Consolidated Condensed Statements of Income as interest on loans held-for-sale.

Determination of Fair Value

In accordance with ASC 820-10-35, fair values are based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following describes the assumptions and methodologies used to estimate the fair value of financial instruments recorded at fair value in the Consolidated Condensed Statements of Condition and for estimating the fair value of financial instruments for which fair value is disclosed under ASC 825-10-50.

Short-term financial assets. Federal funds sold, securities purchased under agreements to resell, and interest bearing deposits with other financial institutions and the Federal Reserve are carried at historical cost. The carrying amount is a reasonable estimate of fair value because of the relatively short time between the origination of the instrument and its expected realization.

Trading securities and trading liabilities. Trading securities and trading liabilities are recognized at fair value through current earnings. Trading inventory held for broker-dealer operations is included in trading securities and trading liabilities. Broker-dealer long positions are valued at bid price in the bid-ask spread. Short positions are valued at the ask price. Inventory positions are valued using observable inputs including current market transactions, LIBOR and U.S. treasury curves, credit spreads, and consensus prepayment speeds. Trading loans are valued using observable inputs including current market transactions, swap rates, mortgage rates, and consensus prepayment speeds.

Trading securities also include retained interests in prior securitizations that qualify as financial assets, which include primarily principal-only strips. FHN uses inputs including yield curves, credit spreads, and prepayment speeds to determine the fair value of principal-only strips.

Securities available-for-sale. Securities available-for-sale includes the investment portfolio accounted for as available-for-sale under ASC 320-10-25, federal bank stock holdings, and short-term investments in mutual funds. Valuations of available-for-sale securities are performed using observable inputs obtained from market transactions in similar securities. Typical inputs include LIBOR and U.S. treasury curves, consensus prepayment estimates, and credit spreads. When available, broker quotes are used to support these valuations.

Investments in the stock of the Federal Reserve Bank and Federal Home Loan Banks are recognized at historical cost in the Consolidated Condensed Statements of Condition which is considered to approximate fair value. Short-term investments in mutual funds are measured at the funds’ reported closing net asset values. Investments in equity securities are valued using quoted market prices when available. Cost method investments are valued at historical cost less any recorded impairment due to the illiquid nature of these investments.

Securities held-to-maturity. Securities held-to-maturity reflects debt securities for which management has the positive intent and ability to hold to maturity. To the extent possible, valuations of held-to-maturity securities are performed using observable inputs obtained from market transactions in similar securities. Typical inputs include LIBOR and U.S. treasury curves and credit spreads. Debt securities with limited trading activity are valued using a discounted cash flow model that incorporates a combination of observable and unobservable inputs. Primary observable inputs include contractual cash flows, the treasury curve and credit spreads from similar instruments. Significant unobservable inputs include estimated credit spreads for individual issuers and instruments as well as prepayment speeds, as applicable.

Loans held-for-sale. Residential real estate loans held-for-sale are valued using current transaction prices and/or values on similar assets when available, including committed bids for specific loans or loan portfolios. Uncommitted bids may be adjusted based on other available market information. For all other loans FHN determines the fair value of residential real estate loans held-for-sale using a discounted cash flow model which incorporates both observable and unobservable inputs. Inputs include current mortgage rates for similar products, estimated prepayment rates, foreclosure losses, and various loan performance measures (delinquency, LTV, credit score). Adjustments for delinquency and other differences in loan characteristics are typically reflected in the model’s discount rates. Loss severity trends and the value of underlying collateral are also considered in assessing the appropriate fair value for severely delinquent loans and loans in foreclosure. The valuation of HELOCs also incorporates estimated cancellation rates for loans expected to become delinquent.

Loans held-for-sale also include loans made by the Small Business Administration (“SBA”), which are accounted for at LOCOM. The fair value of SBA loans is determined using an expected cash flow model that utilizes observable inputs such as the spread between LIBOR and prime rates, consensus prepayment speeds, and the treasury curve. The fair value of other non-residential real estate loans held-for-sale is approximated by their carrying values based on current transaction values.

Loans, net of unearned income. Loans, net of unearned income are recognized at the amount of funds advanced, less charge-offs and an estimation of credit risk represented by the allowance for loan losses. The fair value estimates for disclosure purposes differentiate loans based on their financial characteristics, such as product classification, vintage, loan category, pricing features, and remaining maturity.

The fair value of floating rate loans is estimated through comparison to recent market activity in loans of similar product types, with adjustments made for differences in loan characteristics. In situations where market pricing inputs are not available, fair value is considered to approximate book value due to the monthly repricing for commercial and consumer loans, with the exception of floating rate 1-4 family residential mortgage loans which reprice annually and will lag movements in market rates. The fair value for floating rate 1-4 family mortgage loans is calculated by discounting future cash flows to their present value. Future cash flows are discounted to their present value by using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same time period. Prepayment assumptions based on historical prepayment speeds and industry speeds for similar loans have been applied to the floating rate 1-4 family residential mortgage portfolio.

The fair value of fixed rate loans is estimated through comparison to recent market activity in loans of similar product types, with adjustments made for differences in loan characteristics. In situations where market pricing inputs are not available, fair value is estimated by discounting future cash flows to their present value. Future cash flows are discounted to their present value by using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same time period. Prepayment assumptions based on historical prepayment speeds and industry speeds for similar loans have been applied to the fixed rate mortgage and installment loan portfolios.

For all loan portfolio classes, adjustments are made to reflect liquidity or illiquidity of the market. Such adjustments reflect discounts that FHN believes are consistent with what a market participant would consider in determining fair value given current market conditions.

Individually impaired loans are measured using either a discounted cash flow methodology or the estimated fair value of the underlying collateral less costs to sell, if the loan is considered collateral-dependent. In accordance with accounting standards, the discounted cash flow analysis utilizes the loan’s effective interest rate for discounting expected cash flow amounts. Thus, this analysis is not considered a fair value measurement in accordance with ASC 820. However, the results of this methodology are considered to approximate fair value for the applicable loans. Expected cash flows are derived from internally-developed inputs primarily reflecting expected default rates on contractual cash flows. For loans measured using the estimated fair value of collateral less costs to sell, fair value is estimated using appraisals of the collateral. Collateral values are monitored and additional write-downs are recognized if it is determined that the estimated collateral values have declined further. Estimated costs to sell are based on current amounts of disposal costs for similar assets. Carrying value is considered to reflect fair value for these loans.

Derivative assets and liabilities. The fair value for forwards and futures contracts is based on current transactions involving identical securities. Futures contracts are exchange-traded and thus have no credit risk factor assigned as the risk of non-performance is limited to the clearinghouse used.

Valuations of other derivatives (primarily interest rate related swaps) are based on inputs observed in active markets for similar instruments. Typical inputs include the LIBOR curve, Overnight Indexed Swap ("OIS") curve, option volatility, and option skew. In measuring the fair value of these derivative assets and liabilities, FHN has elected to consider credit risk based on the net exposure to individual counterparties. Credit risk is mitigated for these instruments through the use of mutual margining and master netting agreements as well as collateral posting requirements. For derivative contracts with daily cash margin requirements that are considered settlements, the daily margin amount is netted within derivative assets or liabilities. Any remaining credit risk related to interest rate derivatives is considered in determining fair value through evaluation of additional factors such as customer loan grades and debt ratings. Foreign currency related derivatives also utilize observable exchange rates in the determination of fair value. The determination of fair value for FHN’s derivative liabilities associated with its prior sales of Visa Class B shares are classified within Level 3 in the fair value measurements disclosure as previously discussed in the unobservable inputs discussion.

Real estate acquired by foreclosure. Real estate acquired by foreclosure primarily consists of properties that have been acquired in satisfaction of debt. These properties are carried at the lower of the outstanding loan amount or estimated fair value less estimated costs to sell the real estate. Estimated fair value is determined using appraised values with subsequent adjustments for deterioration in values that are not reflected in the most recent appraisal.

Nonearning assets. For disclosure purposes, nonearning financial assets include cash and due from banks, accrued interest receivable, and fixed income receivables. Due to the short-term nature of cash and due from banks, accrued interest receivable, and fixed income receivables, the fair value is approximated by the book value.

Other assets. For disclosure purposes, other assets consist of tax credit investments and deferred compensation assets that are considered financial assets. Tax credit investments accounted for under the equity method are written down to estimated fair value quarterly based on the estimated value of the associated tax credits which incorporates estimates of required yield for hypothetical investors. The fair value of all other tax credit investments is estimated using recent transaction information with adjustments for differences in individual investments. Deferred compensation assets are recognized at fair value, which is based on quoted prices in active markets.

Defined maturity deposits. The fair value of these deposits is estimated by discounting future cash flows to their present value. Future cash flows are discounted by using the current market rates of similar instruments applicable to the remaining maturity. For disclosure purposes, defined maturity deposits include all time deposits.

Undefined maturity deposits. In accordance with ASC 825, the fair value of these deposits is approximated by the book value. For the purpose of this disclosure, undefined maturity deposits include demand deposits, checking interest accounts, savings accounts, and money market accounts.

Short-term financial liabilities. The fair value of federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings are approximated by the book value. The carrying amount is a reasonable estimate of fair value because of the relatively short time between the origination of the instrument and its expected realization.

Term borrowings. The fair value of term borrowings is based on quoted market prices or dealer quotes for the identical liability when traded as an asset. When pricing information for the identical liability is not available, relevant prices for similar debt instruments are used with adjustments being made to the prices obtained for differences in characteristics of the debt instruments. If no relevant pricing information is available, the fair value is approximated by the present value of the contractual cash flows discounted by the investor’s yield which considers FHN’s and FTBNA’s debt ratings.

Other noninterest-bearing liabilities. For disclosure purposes, other noninterest-bearing financial liabilities include accrued interest payable and fixed income payables. Due to the short-term nature of these liabilities, the book value is considered to approximate fair value.

Loan commitments. Fair values of these commitments are based on fees charged to enter into similar agreements taking into account the remaining terms of the agreements and the counterparties’ credit standing.

Other commitments. Fair values of these commitments are based on fees charged to enter into similar agreements.

The following fair value estimates are determined as of a specific point in time utilizing various assumptions and estimates. The use of assumptions and various valuation techniques, as well as the absence of secondary markets for certain financial instruments, reduces the comparability of fair value disclosures between financial institutions. Due to market illiquidity, the fair values for loans, net of unearned income, loans held-for-sale, and term borrowings as of March 31, 2017 and December 31, 2016, involve the use of significant internally-developed pricing assumptions for certain components of these line items. The assumptions and valuations utilized for this disclosure are considered to reflect inputs that market participants would use in transactions involving these instruments as of the measurement date. The valuations of legacy assets, particularly consumer loans within the non-strategic segment and TRUP loans, are influenced by changes in economic conditions since origination and risk perceptions of the financial sector. These considerations affect the estimate of a potential acquirer’s cost of capital and cash flow volatility assumptions from these assets and the resulting fair value measurements may depart significantly from FHN’s internal estimates of the intrinsic value of these assets.

Assets and liabilities that are not financial instruments have not been included in the following table such as the value of long-term relationships with deposit and trust customers, premises and equipment, goodwill and other intangibles, deferred taxes, and certain other assets and other liabilities. Additionally, these measurements are solely for financial instruments as of the measurement date and do not consider the earnings potential of our various business lines. Accordingly, the total of the fair value amounts does not represent, and should not be construed to represent, the underlying value of FHN.

The following table summarizes the book value and estimated fair value of financial instruments recorded in the Consolidated Condensed Statements of Condition as of March 31, 2017:
			March 31, 2017
			Book		Fair 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	$	11,610,889	$	-	$	-	$	11,520,970	$	11,520,970
		Commercial real estate		2,142,423		-		-		2,112,591		2,112,591
	Consumer:
		Consumer real estate		4,407,131		-		-		4,325,035		4,325,035
		Permanent mortgage		393,342		-		-		393,859		393,859
		Credit card & other		334,321		-		-		334,868		334,868
Total loans, net of unearned income and allowance for loan losses				18,888,106		-		-		18,687,323		18,687,323
Short-term financial assets:
	Interest-bearing cash			2,106,597		2,106,597		-		-		2,106,597
	Federal funds sold			31,495		-		31,495		-		31,495
	Securities purchased under agreements to resell			835,222		-		835,222		-		835,222
Total short-term financial assets				2,973,314		2,106,597		866,717		-		2,973,314
Trading securities (a)				1,167,310		-		1,164,975		2,335		1,167,310
Loans held-for-sale				105,456		-		4,700		100,756		105,456
Securities available-for-sale (a) (b)				3,939,278		25,221		3,752,333		161,724		3,939,278
Securities held-to-maturity				14,354		-		-		14,803		14,803
Derivative assets (a)				98,120		17,227		80,893		-		98,120
Other assets:
	Tax credit investments			96,824		-		-		94,884		94,884
	Deferred compensation assets			34,109		34,109		-		-		34,109
Total other assets				130,933		34,109		-		94,884		128,993
Nonearning assets:
	Cash & due from banks			369,290		369,290		-		-		369,290
	Fixed income receivables			168,315		-		168,315		-		168,315
	Accrued interest receivable			61,832		-		61,832		-		61,832
Total nonearning assets				599,437		369,290		230,147		-		599,437
Total assets			$	27,916,308	$	2,552,444	$	6,099,765	$	19,061,825	$	27,714,034
Liabilities:
Deposits:
	Defined maturity		$	1,385,818	$	-	$	1,391,170	$	-	$	1,391,170
	Undefined maturity			22,094,023		-		22,094,023		-		22,094,023
Total deposits				23,479,841		-		23,485,193		-		23,485,193
Trading liabilities (a)				848,190		-		848,190		-		848,190
Short-term financial liabilities:
	Federal funds purchased			504,805		-		504,805		-		504,805
	Securities sold under agreements to repurchase			406,354		-		406,354		-		406,354
	Other short-term borrowings			79,454		-		79,454		-		79,454
Total short-term financial liabilities				990,613		-		990,613		-		990,613
Term borrowings:
	Real estate investment trust-preferred			46,049		-		-		49,350		49,350
	Term borrowings - new market tax credit investment			18,000		-		-		17,934		17,934
	Borrowings secured by residential real estate			19,819		-		-		18,828		18,828
	Other long term borrowings			951,168		-		967,792		-		967,792
Total term borrowings				1,035,036		-		967,792		86,112		1,053,904
Derivative liabilities (a)				101,347		18,365		77,032		5,950		101,347
Other noninterest-bearing liabilities:
	Fixed income payables			21,116		-		21,116		-		21,116
	Accrued interest payable			17,696		-		17,696		-		17,696
Total other noninterest-bearing liabilities				38,812		-		38,812		-		38,812
Total liabilities			$	26,493,839	$	18,365	$	26,407,632	$	92,062	$	26,518,059

• 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.

The following table summarizes the book value and estimated fair value of financial instruments recorded in the Consolidated Statements of Condition as of December 31, 2016:
			December 31, 2016
			Book		Fair 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	$	12,058,689	$	-	$	-	$	11,918,374	$	11,918,374
		Commercial real estate		2,101,671		-		-		2,078,306		2,078,306
	Consumer:
		Consumer real estate		4,473,395		-		-		4,385,669		4,385,669
		Permanent mortgage		406,836		-		-		404,930		404,930
		Credit card & other		346,861		-		-		347,577		347,577
Total loans, net of unearned income and allowance for loan losses				19,387,452		-		-		19,134,856		19,134,856
Short-term financial assets:
	Interest-bearing cash			1,060,034		1,060,034		-		-		1,060,034
	Federal funds sold			50,838		-		50,838		-		50,838
	Securities purchased under agreements to resell			613,682		-		613,682		-		613,682
Total short-term financial assets				1,724,554		1,060,034		664,520		-		1,724,554
Trading securities (a)				897,071		-		894,498		2,573		897,071
Loans held-for-sale				111,248		-		6,631		104,617		111,248
Securities available-for-sale (a) (b)				3,943,499		25,249		3,756,745		161,505		3,943,499
Securities held-to-maturity				14,347		-		-		14,773		14,773
Derivative assets (a)				121,654		33,587		88,067		-		121,654
Other assets:
	Tax credit investments			100,105		-		-		98,400		98,400
	Deferred compensation assets			32,840		32,840		-		-		32,840
Total other assets				132,945		32,840		-		98,400		131,240
Nonearning assets:
	Cash & due from banks			373,274		373,274		-		-		373,274
	Fixed income receivables			57,411		-		57,411		-		57,411
	Accrued interest receivable			62,887		-		62,887		-		62,887
Total nonearning assets				493,572		373,274		120,298		-		493,572
Total assets			$	26,826,342	$	1,524,984	$	5,530,759	$	19,516,724	$	26,572,467
Liabilities:
Deposits:
	Defined maturity		$	1,355,133	$	-	$	1,361,104	$	-	$	1,361,104
	Undefined maturity			21,317,230		-		21,317,230		-		21,317,230
Total deposits				22,672,363		-		22,678,334		-		22,678,334
Trading liabilities (a)				561,848		-		561,848		-		561,848
Short-term financial liabilities:
	Federal funds purchased			414,207		-		414,207		-		414,207
	Securities sold under agreements to repurchase			453,053		-		453,053		-		453,053
	Other short-term borrowings			83,177		-		83,177		-		83,177
Total short-term financial liabilities				950,437		-		950,437		-		950,437
Term borrowings:
	Real estate investment trust-preferred			46,032		-		-		49,350		49,350
	Term borrowings - new market tax credit investment			18,000		-		-		17,918		17,918
	Borrowings secured by residential real estate			23,126		-		-		21,969		21,969
	Other long term borrowings			953,498		-		965,066		-		965,066
Total term borrowings				1,040,656		-		965,066		89,237		1,054,303
Derivative liabilities (a)				135,897		33,274		96,378		6,245		135,897
Other noninterest-bearing liabilities:
	Fixed income payables			21,002		-		21,002		-		21,002
	Accrued interest payable			10,336		-		10,336		-		10,336
Total other noninterest-bearing liabilities				31,338		-		31,338		-		31,338
Total liabilities			$	25,392,539	$	33,274	$	25,283,401	$	95,482	$	25,412,157

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 $68.6 million.

The following table presents the contractual amount and fair value of unfunded loan commitments and standby and other commitments as of March 31, 2017 and December 31, 2016:
	Contractual Amount				Fair Value
(Dollars in thousands)	March 31, 2017		December 31, 2016		March 31, 2017		December 31, 2016
Unfunded Commitments:
Loan commitments	$	9,430,508	$	8,744,649	$	2,612	$	2,924
Standby and other commitments		273,029		277,549		4,230		4,037

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Financial Information (Policy)

3 Months Ended

Mar. 31, 2017

Financial Information [Abstract]

Basis Of Accounting

Basis of Accounting.The unaudited interim consolidated condensed financial statements of First Horizon National Corporation (“FHN”), including its subsidiaries, have been prepared in conformity with accounting principles generally accepted in the United States of America and follow general practices within the industries in which it operates. This preparation requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates and assumptions are based on information available as of the date of the financial statements and could differ from actual results. In the opinion of management, all necessary adjustments have been made for a fair presentation of financial position and results of operations for the periods presented. These adjustments are of a normal recurring nature unless otherwise disclosed in this Quarterly Report on Form 10-Q. The operating results for the interim 2017 period are not necessarily indicative of the results that may be expected going forward. For further information, refer to the audited consolidated financial statements in Exhibit 13 to FHN’s Annual Report on Form 10-K for the year ended December 31, 2016.

Summary of Accounting Changes

Summary of Accounting Changes.Effective January 1, 2017, FHN adopted the provisions of Accounting Standards Update (“ASU”) 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which makes several revisions to equity compensation accounting. Under the new guidance all excess tax benefits and deficiencies that occur when an award vests, is exercised, or expires are recognized in income tax expense as discrete period items. Previously, these transactions were typically recorded directly within equity. Consistent with this change, excess tax benefits and deficiencies are no longer included within estimated proceeds when performing the treasury stock method for calculation of diluted earnings per share. Excess tax benefits are also recognized at the time an award is exercised or vests compared to the previous requirement to delay recognition until the deduction reduces taxes payable. The presentation of excess tax benefits in the statement of cash flows shifted to an operating activity from the prior classification as a financing activity.

ASU 2016-09 also provides an accounting policy election to recognize forfeitures of awards as they occur when estimating stock-based compensation expense rather than the previous requirement to estimate forfeitures from inception. Further, ASU 2016-09 permits employers to use a net-settlement feature to withhold taxes on equity compensation awards up to the maximum statutory tax rate without affecting the equity classification of the award. Under previous guidance, withholding of equity awards in excess of the minimum statutory requirement resulted in liability classification for the entire award. The related cash remittance by the employer for employee taxes is treated as a financing activity in the statement of cash flows. Transition to the new guidance was accomplished through a combination of retrospective (cash flows), cumulative-effect adjustment to equity (forfeitures) and prospective methodologies (tax windfalls and shortfalls). FHN estimates, based on currently enacted tax rates, that adoption of ASU 2016-09 in 2017 will result in an incremental effect on tax provision ranging from $3.0 million of tax benefit to $1.0 million of additional tax provision. The actual effects of adoption in 2017 will primarily depend upon the share price of the FHN’s common stock, which affects the vesting of certain performance awards, probability of exercise of certain stock options and the magnitude of windfalls for all awards upon either vesting or exercise. The effects on earnings per share calculations and election to account for forfeitures as incurred have not been significant.

Effective January 1, 2017, FHN early adopted the provisions of ASU 2016-16, “Intra-Entity Transfers of Assets Other Than Inventory” which requires recognition of the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Therefore, ASU 2016-16 reverses the previous requirement to delay recognition of the tax consequences of these transactions until the associated assets are sold to an outside party. Adoption of ASU 2016-16 did not have a significant effect on FHN.

Accounting Changes Issued but Not Currently Effective

Accounting Changes Issued but Not Currently Effective

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” ASU 2014-09 does not change revenue recognition for financial assets. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This is accomplished through a five-step recognition framework involving 1) the identification of contracts with customers, 2) identification of performance obligations, 3) determination of the transaction price, 4) allocation of the transaction price to the performance obligations and 5) recognition of revenue as performance obligations are satisfied. Additionally, qualitative and quantitative information is required for disclosure regarding the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In February 2016, the FASB issued ASU 2016-08, “Principal versus Agent Considerations,” which provides additional guidance on whether an entity should recognize revenue on a gross or net basis, based on which party controls the specified good or service before that good or service is transferred to a customer. In April 2016, the FASB issued ASU 2016-10, “Identifying Performance Obligations and Licensing,” which clarifies the original guidance included in ASU 2014-09 for identification of the goods or services provided to customers and enhances the implementation guidance for licensing arrangements.ASU 2016-12, “Narrow-Scope Improvements and Practical Expedients,” was issued in May 2016 to provide additional guidance for the implementation and application of ASU 2014-09. “Technical Corrections and Improvements” ASU 2016-20 was issued in December 2016 and provides further guidance on certain issues. These ASUs are effective in annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is permitted for annual reporting periods beginning after December 15, 2016, and associated interim periods. Transition to the new requirements may be made by retroactively revising prior financial statements (with certain practical expedients permitted) or by a cumulative effect through retained earnings. If the latter option is selected, additional disclosures are required for comparability. FHN will not early adopt these ASUs and is evaluating their effects on its revenue recognition practices. Currently, FHN anticipates that it will elect to adopt the provisions of the revenue recognition standards through a cumulative effect to retained earnings with comparability disclosures provided throughout 2018.

In February 2017, the FASB issued ASU 2017-05, “Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets” which clarifies the meaning and application of the term in substance nonfinancial asset in transactions involving both financial and nonfinancial assets. If substantially all of the fair value of the assets that are promised to the counterparty in a contract are concentrated in nonfinancial assets, then all of the financial assets promised to the counterparty are in substance nonfinancial assets within the scope of revenue recognition guidance for nonfinancial assets.ASU 2017-05 also clarifies that an entity should identify each distinct nonfinancial asset or in substance nonfinancial asset promised to a counterparty and derecognize each asset when a counterparty obtains control of it with the amount of revenue recognized based on the allocation guidance provided in ASU 2014-09. ASU 2017-05 also requires an entity to derecognize a distinct nonfinancial asset or distinct insubstance nonfinancial asset in a partial sale transaction when it 1) does not have (or ceases to have) a controlling financial interest in the legal entity that holds the asset in accordance with Topic 810 and 2) transfers control of the asset in accordance with the provisions of ASU 2014-09.Once an entity transfers control of a distinct nonfinancial asset or distinct in substance nonfinancial asset, it is required to measure any noncontrolling interest it receives (or retains) at fair value.ASU 2017-05 has the same effective date and transition provisions as ASU 2014-09 and the two standards must be adopted simultaneously although the transition methods may be different.FHN is evaluating the effects of ASU 2017-05 on its revenue recognition practices.Currently, FHN anticipates that it will elect to adopt the provisions of ASU 2017-05 through a cumulative effect to retained earnings with comparability disclosures provided throughout 2018.

In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 makes several revisions to the accounting, presentation and disclosure for financial instruments. Equity investments (except those accounted for under the equity method, those that result in consolidation of the investee, and those held by entities subject to specialized industry accounting which already apply fair value through earnings) are required to be measured at fair value with changes in fair value recognized in net income. This excludes FRB and FHLB stock holdings which are specifically exempted from the provisions of ASU 2016-01. An entity may elect to measure equity investments that do not have readily determinable market values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar instruments from the same issuer. ASU 2016-01 also requires a qualitative impairment review for equity investments without readily determinable fair values, with measurement at fair value required if impairment is determined to exist. For liabilities for which fair value has been elected, ASU 2016-01 revises current accounting to record the portion of fair value changes resulting from instrument-specific credit risk within other comprehensive income rather than earnings. FHN has not elected fair value accounting for any existing financial liabilities. Additionally, ASU 2016-01 clarifies that the need for a valuation allowance on a deferred tax asset related to available-for-sale securities should be assessed in combination with all other deferred tax assets rather than being assessed in isolation. ASU 2016-01 also makes several changes to existing fair value presentation and disclosure requirements, including a provision that all disclosures must use an exit price concept in the determination of fair value. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Transition will be through a cumulative effect adjustment to retained earnings for equity investments with readily determinable fair values. Equity investments without readily determinable fair values, for which the accounting election is made, will have any initial fair value marks recorded through earnings prospectively after adoption.

Upon adoption, FHN will reclassify all equity investments out of available-for-sale securities, leaving only debt securities within this classification. FHN has evaluated the nature of its current equity investments and determined that substantially all qualify for the election available to assets without readily determinable fair values, including its holdings of Visa Class B shares. Accordingly, FHN intends to apply this election and any fair value marks for these investments will be recognized through earnings on a prospective basis subsequent to adoption. FHN continues to evaluate the appropriate characteristics of “similar” instruments as well as related valuation inputs and methodologies for its equity investments without readily determinable fair values. The requirements of ASU 2016-01 related to assessment of deferred tax assets and disclosure of the fair value of financial instruments will not have a significant effect on FHN because its current accounting and disclosure practices conform to the requirements of ASU 2016-01. FHN also continues to evaluate the impact of ASU 2016-01 on other aspects of its current accounting and disclosure practices.

In February 2016, the FASB issued ASU 2016-02, “Leases,” which requires a lessee to recognize in its statement of condition a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. ASU 2016-02 leaves lessor accounting largely unchanged from prior standards. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. All other leases must be classified as financing or operating leases which depends on the relationship of the lessee’s rights to the economic value of the leased asset. For finance leases, interest on the lease liability is recognized separately from amortization of the right-of-use asset in earnings, resulting in higher expense in the earlier portion of the lease term. For operating leases, a single lease cost is calculated so that the cost of the lease is allocated over the lease term on a generally straight-line basis.

In transition to ASU 2016-02, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply, which would result in continuing to account for leases that commence before the effective date in accordance with previous requirements (unless the lease is modified) except that lessees are required to recognize a right-of-use asset and a lease liability for all operating leases at each reporting date based on the present value of the remaining minimum rental payments that were tracked and disclosed under previous requirements. ASU 2016-02 also requires expanded qualitative and quantitative disclosures to assess the amount, timing, and uncertainty of cash flows arising from lease arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. FHN is evaluating the impact of ASU 2016-02 on its current accounting and disclosure practices.

In March 2016, the FASB issued ASU 2016-04, “Recognition of Breakage of Certain Prepaid Stored-Value Products,” which indicates that liabilities related to the sale of prepaid stored-value products are considered financial liabilities and should have a breakage estimate applied for estimated unused funds. ASU 2016-04 does not apply to stored-value products that can only be redeemed for cash, are subject to escheatment or are linked to a segregated bank account. ASU 2016-04 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. FHN is evaluating the impact of ASU 2016-04 on its current accounting and disclosure practices.

In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments,” which revises the measurement and recognition of credit losses for assets measured at amortized cost (e.g., held-to-maturity (“HTM”) loans and debt securities) and available-for-sale (“AFS”) debt securities. Under ASU 2016-13, for assets measured at amortized cost, the current expected credit loss (“CECL”) is measured as the difference between amortized cost and the net amount expected to be collected. This represents a departure from existing GAAP as the “incurred loss” methodology for recognizing credit losses delays recognition until it is probable a loss has been incurred. The measurement of current expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Additionally, current disclosures of credit quality indicators in relation to the amortized cost of financing receivables will be further disaggregated by year of origination. ASU 2016-13 leaves the methodology for measuring credit losses on AFS debt securities largely unchanged, with the maximum credit loss representing the difference between amortized cost and fair value. However, such credit losses will be recognized through an allowance for credit losses, which permits recovery of previously recognized credit losses if circumstances change.

ASU 2016-13 also revises the recognition of credit losses for purchased financial assets with a more-than insignificant amount of credit deterioration since origination (“PCD assets”). For PCD assets, the initial allowance for credit losses is added to the purchase price. Only subsequent changes in the allowance for credit losses are recorded as a credit loss expense for PCD assets. Interest income for PCD assets will be recognized based on the effective interest rate, excluding the discount embedded in the purchase price that is attributable to the acquirer’s assessment of credit losses at acquisition. Currently, credit losses for purchased credit-impaired assets are included in the initial basis of the assets with subsequent declines in credit resulting in expense while subsequent improvements in credit are reflected as an increase in the future yield from the assets.

The provisions of ASU 2016-13 will be generally adopted through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in the year of adoption. Prospective implementation is required for debt securities for which an other-than-temporary-impairment (“OTTI”) had been previously recognized. Amounts previously recognized in accumulated other comprehensive income (“AOCI”) as of the date of adoption that relate to improvements in cash flows expected to be collected will continue to be accreted into income over the remaining life of the asset. Recoveries of amounts previously written off relating to improvements in cash flows after the date of adoption will be recorded in earnings when received. A prospective transition approach will be used for existing PCD assets where, upon adoption, the amortized cost basis will be adjusted to reflect the addition of the allowance for credit losses. Thus, an entity will not be required to reassess its purchased financial assets that exist as of the date of adoption to determine whether they would have met at acquisition the new criteria of more-than-insignificant credit deterioration since origination. An entity will accrete the remaining noncredit discount (based on the revised amortized cost basis) into interest income at the effective interest rate at the adoption date.

ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted in fiscal years beginning after December 15, 2018. FHN is still evaluating the impact of ASU 2016-13 on its current accounting and disclosure practices.

In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments,” which clarifies multiple cash flow presentation issues including providing guidance as to classification on the cash flow statement for certain cash receipts and cash payments where diversity in practice exists. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The provisions of ASU 2016-15 will be applied retroactively and will result in proceeds from bank-owned life insurance (“BOLI”) being classified as an investing activity rather than their prior classification as an operating activity.

In March 2017, the FASB issued ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” which requires the disaggregation of the service cost component from the other components of net benefit cost for pension and postretirement plans.Service cost must be included in the same income statement line item as other compensation-related expenses. All other components of net benefit cost are required to be presented in the income statement separately from the service cost component, with disclosure of the line items where these amounts are recorded.The presentation requirements of ASU 2017-07 must be applied retrospectively and adoption is required for annual periods beginning after December 15, 2017, including interim periods within those annual periods. FHN’s disclosures for pension and postretirement costs provide details of the service cost and all other components for expenses recognized for its applicable benefit plans. These amounts are currently included in Employee compensation, incentives, and benefits expense in the Consolidated Condensed Statements of Income.Upon adoption of ASU 2017-07 FHN will reclassify the expense components other than service cost into All other expense and revise its disclosures accordingly.The amounts to be reclassified are presented in Note 11 - Pension, Savings, and Other Employee Benefits in this Quarterly Report on Form 10-Q for the quarter ended March 31, 2017 and in Note 18 - Pension, Savings, and Other Employee Benefits in Exhibit 13 to FHN’s Annual Report on Form 10-K for the year ended December 31, 2016.

In March 2017, the FASB issued ASU 2017-08, “Premium Amortization on PurchasedCallable Debt Securities” which shortens the amortization period for securities that have explicit, noncontingent call features that are callable at fixed prices and on preset dates. In contrast to the current requirement for premium amortization to extend to the contractual maturity date, ASU 2017-08 requires the premium to be amortized to the earliest call date. ASU 2017-08 does not change the amortization of discounts, which will continue to be amortized to maturity. The new guidance does not apply to debt securities where the prepayment date is not preset or the price is not known in advance, which includes debt securities that qualify for amortization based on estimated prepayment rates.ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 with early adoption permitted. Transition is accomplished through a cumulative-effect adjustment directly to retained earnings as of the beginning of the year of adoption. Based upon the current composition of its debt securities portfolios, FHN does not anticipate a significant effect upon adoption.

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Investment Securities (Tables)

3 Months Ended

Mar. 31, 2017

Investment Securities [Abstract]

Schedule Of FHN's Investment Securities

The following tables summarize FHN’s investment securities on March 31, 2017 and December 31, 2016:
	March 31, 2017
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
(Dollars in thousands)	Cost		Gains		Losses		Value
Securities available-for-sale:
U.S. treasuries	$	100	$	-	$	-	$	100
Government agency issued mortgage-backed securities ("MBS")		2,171,843		13,675		(25,596)		2,159,922
Government agency issued collateralized mortgage obligations ("CMO")		1,610,857		4,980		(23,526)		1,592,311
Equity and other (a)		186,948		-		(3)		186,945
Total securities available-for-sale (b)	$	3,969,748	$	18,655	$	(49,125)	$	3,939,278
Securities held-to-maturity:
States and municipalities	$	4,354	$	386	$	-	$	4,740
Corporate bonds		10,000		63		-		10,063
Total securities held-to-maturity	$	14,354	$	449	$	-	$	14,803

• Includes restricted investments in FHLB-Cincinnati stock of $87.9million and FRB stock of $68.6million. The remainder is money market, mutual funds, and cost method investments.
• Includes $3.5billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes.

	December 31, 2016
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
(Dollars in thousands)	Cost		Gains		Losses		Value
Securities available-for-sale:
U.S. treasuries	$	100	$	-	$	-	$	100
Government agency issued MBS		2,217,593		14,960		(23,866)		2,208,687
Government agency issued CMO		1,566,986		4,909		(23,937)		1,547,958
Equity and other (a)		186,756		-		(2)		186,754
Total securities available-for-sale (b)	$	3,971,435	$	19,869	$	(47,805)	$	3,943,499
Securities held-to-maturity:
States and municipalities	$	4,347	$	393	$	-	$	4,740
Corporate bonds		10,000		33		-		10,033
Total securities held-to-maturity	$	14,347	$	426	$	-	$	14,773

• Includes restricted investments in FHLB-Cincinnati stock of $87.9 million and FRB stock of $68.6million. The remainder is money market, mutual funds, and cost method investments.
• Includes $3.3 billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes.

Schedule Of Amortized Cost And Fair Value By Contractual Maturity

The amortized cost and fair value by contractual maturity for the available-for-sale and held-to-maturity securities portfolios on March 31, 2017 are provided below:
		Held-to-Maturity				Available-for-Sale
		Amortized		Fair		Amortized		Fair
(Dollars in thousands)		Cost		Value		Cost		Value
Within 1 year		$	-	$	-	$	100	$	100
After 1 year; within 5 years			-		-		-		-
After 5 years; within 10 years			10,000		10,063		-		-
After 10 years			4,354		4,740		-		-
	Subtotal		14,354		14,803		100		100
Government agency issued MBS and CMO (a)			-		-		3,782,700		3,752,233
Equity and other			-		-		186,948		186,945
Total		$	14,354	$	14,803	$	3,969,748	$	3,939,278

Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

Schedule Of Gross Gains And Losses On Sale From Available For Sale Portfolio

The table below provides information on gross gains and gross losses from investment securities for the three months ended March 31:
	Available-for-sale
(Dollars in thousands)	2017		2016
Gross gains on sales of securities	$	44	$	3,837
Gross (losses) on sales of securities		-		(2,263)
Net gain/(loss) on sales of securities (a)	$	44	$	1,574

Cash proceeds for the three months ended March 31, 2017 were not material. Cash proceeds for the three months ended March 31, 2016 were $1.0 million. 2016 includes a $1.7 million gain from an exchange of approximately $294 million of AFS debt securities.

Schedule Of Investments Within The Available For Sale Portfolio That Had Unrealized Losses

The following tables provide information on investments within the available-for-sale portfolio that had unrealized losses as of March 31, 2017 and December 31, 2016:
	As of March 31, 2017
	Less than 12 months				12 months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Losses		Value		Losses		Value		Losses
Government agency issued CMO	$	1,068,010	$	(18,525)	$	111,813	$	(5,001)	$	1,179,823	$	(23,526)
Government agency issued MBS		1,846,348		(25,596)		-		-		1,846,348		(25,596)
Total debt securities		2,914,358		(44,121)		111,813		(5,001)		3,026,171		(49,122)
Equity		6		(3)		-		-		6		(3)
Total temporarily impaired securities	$	2,914,364	$	(44,124)	$	111,813	$	(5,001)	$	3,026,177	$	(49,125)

	As of December 31, 2016
	Less than 12 months				12 months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Losses		Value		Losses		Value		Losses
Government agency issued CMO	$	1,059,471	$	(19,052)	$	116,527	$	(4,885)	$	1,175,998	$	(23,937)
Government agency issued MBS		1,912,126		(23,866)		-		-		1,912,126		(23,866)
Total debt securities		2,971,597		(42,918)		116,527		(4,885)		3,088,124		(47,803)
Equity		7		(2)		-		-		7		(2)
Total temporarily impaired securities	$	2,971,604	$	(42,920)	$	116,527	$	(4,885)	$	3,088,131	$	(47,805)

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Loans (Tables)

3 Months Ended

Mar. 31, 2017

Loans [Abstract]

Schedule Of Loans By Portfolio Segment

The following table provides the balance of loans by portfolio segment as of March 31, 2017 and December 31, 2016:
		March 31		December 31
(Dollars in thousands)		2017		2016
Commercial:
	Commercial, financial, and industrial	$	11,703,996	$	12,148,087
	Commercial real estate		2,173,311		2,135,523
Consumer:
	Consumer real estate (a)		4,456,811		4,523,752
	Permanent mortgage		409,235		423,125
	Credit card & other		346,721		359,033
Loans, net of unearned income		$	19,090,074	$	19,589,520
Allowance for loan losses			201,968		202,068
Total net loans		$	18,888,106	$	19,387,452

Balances as of March 31, 2017 and December 31, 2016, include $32.5 million and $35.9 million of restricted real estate loans, respectively. See Note 13 - Variable Interest Entities for additional information.

Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Accretable Yield Movement Schedule Rollforward [Table Text Block]

The following table presents a rollforward of the accretable yield for the three months ended March 31, 2017 and 2016:
		Three Months Ended
		March 31
(Dollars in thousands)		2017		2016
Balance, beginning of period	$	6,871	$	8,542
Accretion		(851)		(1,151)
Adjustment for payoffs		(273)		(1,777)
Adjustment for charge-offs		-		(663)
Adjustment for pool excess recovery (a)		(222)		-
Increase/(decrease) in accretable yield (b)		(295)		4,007
Other		(32)		-
Balance, end of period	$	5,198	$	8,958

• Represents the removal of accretable difference for the remaining loans in a pool which is now in a recovery state.
• Includes changes in the accretable yield due to both transfers from the nonaccretable difference and the impact of changes in the expected timing of the cash flows.

Schedule Of Acquired Purchase Credit Impaired Loans By Portfolio Segment [Table Text Block]

The following table reflects the outstanding principal balance and carrying amounts of the acquired PCI loans as of March 31, 2017 and December 31, 2016:
	March 31, 2017				December 31, 2016
(Dollars in thousands)	Carrying value		Unpaid balance		Carrying value		Unpaid balance
Commercial, financial and industrial	$	38,088	$	39,257	$	40,368	$	41,608
Commercial real estate		4,096		5,466		4,763		6,514
Consumer real estate		1,072		1,442		1,172		1,677
Credit card and other		53		64		52		64
Total	$	43,309	$	46,229	$	46,355	$	49,863

Information By Class Related To Individually Impaired Loans

The following tables provide information at March 31, 2017 and December 31, 2016, by class related to individually impaired loans and consumer TDRs, regardless of accrual status. Recorded investment is defined as the amount of the investment in a loan, before valuation allowance but which does reflect any direct write-down of the investment. For purposes of this disclosure, PCI loans and the TRUPs valuation allowance have been excluded.
								Three Months Ended March 31
		March 31, 2017
								2017				2016
				Unpaid				Average		Interest		Average		Interest
		Recorded		Principal		Related		Recorded		Income		Recorded		Income
(Dollars in thousands)		Investment		Balance		Allowance		Investment		Recognized		Investment		Recognized
Impaired loans with no related allowance recorded:
Commercial:
	General C&I	$	10,395	$	16,612	$	-	$	10,407	$	-	$	9,224	$	-
	Income CRE		-		-		-		-		-		2,468		-
	Total	$	10,395	$	16,612	$	-	$	10,407	$	-	$	11,692	$	-
Consumer:
	HELOC (a)	$	10,724	$	22,020	$	-	$	11,054	$	-	$	10,921	$	-
	R/E installment loans (a)		3,916		4,987		-		3,937		-		4,434		-
	Permanent mortgage (a)		5,803		8,607		-		5,557		-		4,436		-
	Total	$	20,443	$	35,614	$	-	$	20,548	$	-	$	19,791	$	-
Impaired loans with related allowance recorded:
Commercial:
	General C&I	$	31,392	$	31,532	$	2,850	$	32,863	$	215	$	24,921	$	87
	TRUPS		3,183		3,700		925		3,196		-		3,323		-
	Income CRE		1,803		2,181		61		1,817		14		5,138		20
	Residential CRE		1,293		1,761		131		1,293		5		1,397		6
	Total	$	37,671	$	39,174	$	3,967	$	39,169	$	234	$	34,779	$	113
Consumer:
	HELOC	$	81,438	$	83,888	$	16,641	$	83,075	$	564	$	88,580	$	487
	R/E installment loans		50,394		51,317		12,060		51,902		318		59,971		317
	Permanent mortgage		82,940		94,755		11,532		85,778		615		95,232		547
	Credit card & other		269		269		122		288		2		360		3
	Total	$	215,041	$	230,229	$	40,355	$	221,043	$	1,499	$	244,143	$	1,354
Total commercial		$	48,066	$	55,786	$	3,967	$	49,576	$	234	$	46,471	$	113
Total consumer		$	235,484	$	265,843	$	40,355	$	241,591	$	1,499	$	263,934	$	1,354
Total impaired loans		$	283,550	$	321,629	$	44,322	$	291,167	$	1,733	$	310,405	$	1,467

All discharged bankruptcy loans are charged down to an estimate of net realizable value and do not carry any allowance.

		December 31, 2016
				Unpaid				Average			Interest
		Recorded		Principal		Related		Recorded			Income
(Dollars in thousands)		Investment		Balance		Allowance			Investment		Recognized
Impaired loans with no related allowance recorded:
Commercial:
	General C&I	$	10,419	$	16,636	$	-		$	12,009	$	-
	Income CRE		-		-		-			1,543		-
	Total	$	10,419	$	16,636	$	-		$	13,552	$	-
Consumer:
	HELOC (a)	$	11,383	$	21,662	$	-		$	11,168	$	-
	R/E installment loans (a)		3,957		4,992		-			4,255		-
	Permanent mortgage (a)		5,311		7,899		-			4,418		-
	Total	$	20,651	$	34,553	$	-		$	19,841	$	-
Impaired loans with related allowance recorded:
Commercial:
	General C&I	$	34,334	$	34,470	$	3,294		$	30,836	$	902
	TRUPS		3,209		3,700		925			3,274		-
	Income CRE		1,831		2,209		62			3,757		70
	Residential CRE		1,293		1,761		132			1,360		22
	Total	$	40,667	$	42,140	$	4,413		$	39,227	$	994
Consumer:
	HELOC	$	84,711	$	87,126	$	15,927		$	87,659	$	2,092
	R/E installment loans		53,409		54,559		12,875			57,906		1,370
	Permanent mortgage		88,615		100,983		12,470			91,838		2,310
	Credit card & other		306		306		133			345		13
	Total	$	227,041	$	242,974	$	41,405		$	237,748	$	5,785
Total commercial		$	51,086	$	58,776	$	4,413		$	52,779	$	994
Total consumer		$	247,692	$	277,527	$	41,405		$	257,589	$	5,785
Total impaired loans		$	298,778	$	336,303	$	45,818		$	310,368	$	6,779

All discharged bankruptcy loans are charged down to an estimate of net realizable value and do not carry any allowance.

Balances Of Commercial Loan Portfolio Classes, Disaggregated By PD Grade

The following tables provide the balances of commercial loan portfolio classes with associated allowance, disaggregated by PD grade as of March 31, 2017 and December 31, 2016:
	March 31, 2017
			Loans to												Allowance
	General		Mortgage				Income		Residential				Percentage		for Loan
(Dollars in thousands)	C&I		Companies		TRUPS (a)		CRE		CRE		Total		of Total		Losses
PD Grade:
1	$	478,025	$	-	$	-	$	610	$	-	$	478,635	3	%	$	78
2		891,450		-		-		11,293		81		902,824	7			442
3		403,403		398,860		-		160,115		-		962,378	7			239
4		998,015		227,257		-		242,069		221		1,467,562	11			879
5		1,269,384		139,434		-		426,147		333		1,835,298	13			7,260
6		1,535,573		521,253		-		368,073		8,072		2,432,971	17			10,600
7		1,479,242		169,444		-		396,654		2,161		2,047,501	15			12,767
8		1,042,772		49,588		-		352,370		4,383		1,449,113	10			24,532
9		641,463		4,643		-		82,734		3,357		732,197	5			14,396
10		344,633		4,499		-		35,489		9,695		394,316	3			8,510
11		228,258		-		-		17,501		5,454		251,213	2			6,289
12		162,238		13,956		-		15,831		2,965		194,990	1			6,862
13		115,844		-		304,236		4,755		128		424,963	3			3,757
14,15,16		197,230		48		-		14,395		1,183		212,856	2			23,177
Collectively evaluated for impairment		9,787,530		1,528,982		304,236		2,128,036		38,033		13,786,817	99			119,788
Individually evaluated for impairment		41,787		-		3,183		1,803		1,293		48,066	1			3,967
Purchased credit-impaired loans		38,278		-		-		4,052		94		42,424	-			240
Total commercial loans	$	9,867,595	$	1,528,982	$	307,419	$	2,133,891	$	39,420	$	13,877,307	100	%	$	123,995

	December 31, 2016
			Loans to												Allowance
	General		Mortgage				Income		Residential				Percentage		for Loan
(Dollars in thousands)	C&I		Companies		TRUPS (a)		CRE		CRE		Total		of Total		Losses
PD Grade:
1	$	465,179	$	-	$	-	$	1,078	$	-	$	466,257	3	%	$	77
2		791,183		-		-		11,742		87		803,012	6			403
3		491,386		462,486		-		153,670		-		1,107,542	8			304
4		978,282		332,107		-		222,422		-		1,532,811	11			953
5		1,232,401		275,209		-		365,653		702		1,873,965	13			6,670
6		1,540,519		614,109		-		338,344		9,338		2,502,310	17			10,403
7		1,556,117		317,283		-		352,390		2,579		2,228,369	16			14,010
8		963,359		30,974		-		425,503		2,950		1,422,786	10			25,986
9		611,774		4,299		-		105,277		4,417		725,767	5			13,857
10		355,359		8,663		-		50,484		9,110		423,616	3			8,400
11		238,230		-		-		20,600		6,541		265,371	2			6,556
12		170,531		-		-		15,395		4,168		190,094	1			6,377
13		121,276		-		304,236		6,748		311		432,571	3			4,225
14,15,16		194,572		59		-		16,313		1,659		212,603	1			20,297
Collectively evaluated for impairment		9,710,168		2,045,189		304,236		2,085,619		41,862		14,187,074	99			118,518
Individually evaluated for impairment		44,753		-		3,209		1,831		1,293		51,086	1			4,413
Purchased credit-impaired loans		40,532		-		-		4,583		335		45,450	-			319
Total commercial loans	$	9,795,453	$	2,045,189	$	307,445	$	2,092,033	$	43,490	$	14,283,610	100	%	$	123,250

Balances as of March 31, 2017 and December 31, 2016, presented net of a $25.5 million valuation allowance. Based on the underlying structure of the notes, the highest possible internal grade is "13".

Loans by FICO Score, Consumer

The following table reflects the percentage of balances outstanding by average, refreshed FICO scores for the HELOC, real estate installment, and permanent mortgage classes of loans as of March 31, 2017 and December 31, 2016:
	March 31, 2017						December 31, 2016
	HELOC		R/E Installment Loans		Permanent Mortgage		HELOC		R/E Installment Loans		Permanent Mortgage
FICO score 740 or greater	57.6	%	70.1	%	45.5	%	56.9	%	70.3	%	45.0	%
FICO score 720-739	8.8		8.0		8.7		8.8		8.3		9.5
FICO score 700-719	8.2		7.2		9.5		8.6		6.8		9.2
FICO score 660-699	12.6		9.0		16.8		13.2		8.4		17.1
FICO score 620-659	5.7		3.0		8.9		5.6		3.5		9.1
FICO score less than 620 (a)	7.1		2.7		10.6		6.9		2.7		10.1
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

For this group, a majority of the loan balances had FICO scores at the time of the origination that exceeded 620 but have since deteriorated as the loans have seasoned.

Accruing And Non-Accruing Loans By Class

The following table reflects accruing and non-accruing loans by class on March 31, 2017:
	Accruing								Non-Accruing
			30-89		90+						30-89		90+		Total
			Days		Days		Total				Days		Days		Non-		Total
(Dollars in thousands)	Current		Past Due		Past Due		Accruing		Current		Past Due		Past Due		Accruing		Loans
Commercial (C&I):
General C&I	$	9,781,688	$	20,073	$	101	$	9,801,862	$	14,511	$	113	$	12,831	$	27,455	$	9,829,317
Loans to mortgage companies		1,528,934		-		-		1,528,934		-		-		48		48		1,528,982
TRUPS (a)		304,236		-		-		304,236		-		-		3,183		3,183		307,419
Purchased credit-impaired loans		38,045		8		225		38,278		-		-		-		-		38,278
Total commercial (C&I)		11,652,903		20,081		326		11,673,310		14,511		113		16,062		30,686		11,703,996
Commercial real estate:
Income CRE		2,128,111		128		-		2,128,239		100		-		1,500		1,600		2,129,839
Residential CRE		38,531		-		-		38,531		-		-		795		795		39,326
Purchased credit-impaired loans		3,605		541		-		4,146		-		-		-		-		4,146
Total commercial real estate		2,170,247		669		-		2,170,916		100		-		2,295		2,395		2,173,311
Consumer real estate:
HELOC		1,521,042		16,612		10,247		1,547,901		46,661		4,187		8,345		59,193		1,607,094
R/E installment loans		2,814,663		7,056		4,427		2,826,146		17,477		1,993		2,679		22,149		2,848,295
Purchased credit-impaired loans		1,328		-		94		1,422		-		-		-		-		1,422
Total consumer real estate		4,337,033		23,668		14,768		4,375,469		64,138		6,180		11,024		81,342		4,456,811
Permanent mortgage		369,882		4,802		5,718		380,402		14,166		1,006		13,661		28,833		409,235
Credit card & other:
Credit card		182,129		1,393		1,449		184,971		-		-		-		-		184,971
Other		160,929		482		150		161,561		-		-		136		136		161,697
Purchased credit-impaired loans		53		-		-		53		-		-		-		-		53
Total credit card & other		343,111		1,875		1,599		346,585		-		-		136		136		346,721
Total loans, net of unearned income	$	18,873,176	$	51,095	$	22,411	$	18,946,682	$	92,915	$	7,299	$	43,178	$	143,392	$	19,090,074

TRUPS is presented net of the valuation allowanceof $25.5 million.

The following table reflects accruing and non-accruing loans by class on December 31, 2016:
	Accruing								Non-Accruing
			30-89		90+						30-89		90+		Total
			Days		Days		Total				Days		Days		Non-		Total
(Dollars in thousands)	Current		Past Due		Past Due		Accruing		Current		Past Due		Past Due		Accruing		Loans
Commercial (C&I):
General C&I	$	9,720,231	$	5,199	$	23	$	9,725,453	$	16,106	$	374	$	12,988	$	29,468	$	9,754,921
Loans to mortgage companies		2,041,408		3,722		-		2,045,130		-		-		59		59		2,045,189
TRUPS (a)		304,236		-		-		304,236		-		-		3,209		3,209		307,445
Purchased credit-impaired loans		40,113		185		234		40,532		-		-		-		-		40,532
Total commercial (C&I)		12,105,988		9,106		257		12,115,351		16,106		374		16,256		32,736		12,148,087
Commercial real estate:
Income CRE		2,085,455		14		-		2,085,469		232		460		1,289		1,981		2,087,450
Residential CRE		42,182		178		-		42,360		-		-		795		795		43,155
Purchased credit-impaired loans		4,809		109		-		4,918		-		-		-		-		4,918
Total commercial real estate		2,132,446		301		-		2,132,747		232		460		2,084		2,776		2,135,523
Consumer real estate:
HELOC		1,602,640		17,997		10,859		1,631,496		46,964		4,201		8,922		60,087		1,691,583
R/E installment loans		2,794,866		7,844		5,158		2,807,868		17,989		2,383		2,353		22,725		2,830,593
Purchased credit-impaired loans		1,319		164		93		1,576		-		-		-		-		1,576
Total consumer real estate		4,398,825		26,005		16,110		4,440,940		64,953		6,584		11,275		82,812		4,523,752
Permanent mortgage		385,972		4,544		5,428		395,944		11,867		2,194		13,120		27,181		423,125
Credit card & other:
Credit card		188,573		1,622		1,456		191,651		-		-		-		-		191,651
Other		166,062		992		134		167,188		-		-		142		142		167,330
Purchased credit-impaired loans		52		-		-		52		-		-		-		-		52
Total credit card & other		354,687		2,614		1,590		358,891		-		-		142		142		359,033
Total loans, net of unearned income	$	19,377,918	$	42,570	$	23,385	$	19,443,873	$	93,158	$	9,612	$	42,877	$	145,647	$	19,589,520

TRUPS is presented net of the valuation allowance of $25.5 million.

Schedule Of Troubled Debt Restructurings Occurring During The Year

The following tables reflect portfolio loans that were classified as TDRs during the three months ended March 31, 2017 and 2016:
		March 31, 2017					March 31, 2016
			Pre-Modification		Post-Modification			Pre-Modification		Post-Modification
			Outstanding		Outstanding			Outstanding		Outstanding
(Dollars in thousands)		Number	Recorded Investment		Recorded Investment		Number	Recorded Investment		Recorded Investment
Commercial (C&I):
General C&I		1	$	27	$	37	1	$	708	$	708
	Total commercial (C&I)	1		27		37	1		708		708
Consumer real estate:
HELOC		35		2,589		2,473	99		7,440		7,370
R/E installment loans		14		957		902	15		898		895
	Total consumer real estate	49		3,546		3,375	114		8,338		8,265
Permanent mortgage		5		1,310		1,303	-		-		-
Credit card & other		6		21		20	4		19		18
Total troubled debt restructurings		61	$	4,904	$	4,735	119	$	9,065	$	8,991

Schedule Of Troubled Debt Restructurings Within The Previous 12 Months

The following tables present TDRs which re-defaulted during the three months ended March 31, 2017 and 2016, and as to which the modification occurred 12 months or less prior to the re-default. For purposes of this disclosure, FHN generally defines payment default as 30 or more days past due.
		March 31, 2017			March 31, 2016
			Recorded			Recorded
(Dollars in thousands)		Number	Investment		Number	Investment
Commercial (C&I):
General C&I		1	$	5,779	-	$	-
	Total commercial (C&I)	1		5,779	-		-
Consumer real estate:
HELOC		4		685	1		36
	Total consumer real estate	4		685	1		36
Credit card & other		2		7	-		-
Total troubled debt restructurings		7	$	6,471	1	$	36

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Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2017

Loans [Abstract]

Rollforward Of The Allowance For Loan Losses By Portfolio Segment

The following table provides a rollforward of the allowance for loan losses by portfolio segment for the three months ended March 31, 2017 and 2016:
				Commercial		Consumer		Permanent		Credit Card
(Dollars in thousands)		C&I		Real Estate		Real Estate		Mortgage		and Other		Total
Balance as of January 1, 2017		$	89,398	$	33,852	$	50,357	$	16,289	$	12,172	$	202,068
Charge-offs			(600)		-		(3,849)		(483)		(3,481)		(8,413)
Recoveries			1,676		221		5,676		903		837		9,313
Provision/(provision credit) for loan losses			2,633		(3,185)		(2,504)		(816)		2,872		(1,000)
Balance as of March 31, 2017			93,107		30,888		49,680		15,893		12,400		201,968
Allowance - individually evaluated for impairment			3,775		192		28,701		11,532		122		44,322
Allowance - collectively evaluated for impairment			89,142		30,646		20,629		4,361		12,278		157,056
Allowance - purchased credit-impaired loans			190		50		350		-		-		590
Loans, net of unearned as of March 31, 2017:
	Individually evaluated for impairment		44,970		3,096		146,472		88,743		269		283,550
	Collectively evaluated for impairment		11,620,748		2,166,069		4,308,917		320,492		346,399		18,762,625
	Purchased credit-impaired loans		38,278		4,146		1,422		-		53		43,899
Total loans, net of unearned income		$	11,703,996	$	2,173,311	$	4,456,811	$	409,235	$	346,721	$	19,090,074
Balance as of January 1, 2016		$	73,637	$	25,159	$	80,614	$	18,947	$	11,885	$	210,242
Charge-offs			(6,525)		(642)		(6,926)		(112)		(3,407)		(17,612)
Recoveries			780		222		5,735		779		888		8,404
Provision/(provision credit) for loan losses			12,995		887		(12,102)		(860)		2,080		3,000
Balance as of March 31, 2016			80,887		25,626		67,321		18,754		11,446		204,034
Allowance - individually evaluated for impairment			9,148		488		31,119		16,975		146		57,876
Allowance - collectively evaluated for impairment			71,615		24,840		35,477		1,779		11,299		145,010
Allowance - purchased credit-impaired loans			124		298		725		-		1		1,148
Loans, net of unearned as of March 31, 2016:
	Individually evaluated for impairment		44,465		8,950		162,128		96,874		345		312,762
	Collectively evaluated for impairment		10,181,677		1,826,677		4,523,885		345,917		353,822		17,231,978
	Purchased credit-impaired loans		13,041		12,942		4,217		-		54		30,254
Total loans, net of unearned income		$	10,239,183	$	1,848,569	$	4,690,230	$	442,791	$	354,221	$	17,574,994

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Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2017

Goodwill And Intangible Assets Disclosure [Abstract]

Summary Of Intangible Assets and Accumulated Amortization Included In The Consolidated Statements of Condition

The following is a summary of other intangible assets included in the Consolidated Condensed Statements of Condition:
	March 31, 2017						December 31, 2016
(Dollars in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Value		Gross Carrying Amount		Accumulated Amortization		Net Carrying Value
Core deposit intangibles	$	16,850	$	(5,199)	$	11,651	$	16,850	$	(4,721)	$	12,129
Customer lists		54,865		(47,053)		7,812		54,865		(46,302)		8,563
Other (a)		322		-		322		555		(230)		325
Total	$	72,037	$	(52,252)	$	19,785	$	72,270	$	(51,253)	$	21,017

Balance at March 31, 2017 relates to state banking licenses and are not subject to amortization.

Schedule of Estimated Aggregate Amortization Expense for Intangible Assets

(Dollars in thousands)
Year	Amortization
Remainder of 2017		$	3,683
2018			4,679
2019			4,453
2020			1,659
2021			1,574
2022			1,450

Summary Of Gross Goodwill And Accumulated Impairment Losses And Write-Offs Detailed By Reportable Segments

The following is a summary of goodwill by reportable segment included in the Consolidated Condensed Statements of Condition as of March 31, 2017 and December 31, 2016.

		Regional		Fixed
(Dollars in thousands)		Banking		Income		Total
December 31, 2015		$	93,303	$	98,004	$	191,307
	Additions		-		-		-
March 31, 2016		$	93,303	$	98,004	$	191,307
December 31, 2016		$	93,367	$	98,004	$	191,371
	Additions		-		-		-
March 31, 2017		$	93,367	$	98,004	$	191,371

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Other Income And Other Expense (Tables)

3 Months Ended

Mar. 31, 2017

Other Income And Other Expense [Abstract]

Other Income And Other Expense

Following is detail of All other income and commissions and All other expense as presented in the Consolidated Condensed Statements of Income:
	Three Months Ended
	March 31
(Dollars in thousands)	2017		2016
All other income and commissions:
Other service charges	$	2,984	$	2,713
ATM interchange fees		2,778		2,958
Deferred compensation		1,827		329
Electronic banking fees		1,323		1,397
Mortgage banking		1,261		1,273
Letter of credit fees		1,036		1,061
Insurance commissions		883		487
Other		2,299		3,071
Total	$	14,391	$	13,289
All other expense:
Other insurance and taxes	$	2,390	$	3,313
Travel and entertainment		2,348		2,062
Employee training and dues		1,543		1,390
Customer relations		1,336		1,879
Tax credit investments		942		706
Supplies		863		1,026
Miscellaneous loan costs		622		717
Foreclosed real estate		204		(258)
Litigation and regulatory matters		(292)		(475)
Other		8,831		11,719
Total	$	18,787	$	22,079

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Components of Other Comprehensive Income/(Loss) (Tables)

3 Months Ended

Mar. 31, 2017

Table Text Block Supplement [Abstract]

Accumulated Other Comprehensive Income/(Loss)

The following table provides the changes in accumulated other comprehensive income/(loss) by component, net of tax, for the three months ended March 31, 2017 and 2016:
(Dollars in thousands)		Securities AFS			Cash Flow Hedges	Pension and Post-retirement Plans		Total
Balance as of January 1, 2017		$	(17,232)	$	(1,265)	$	(229,157)	$	(247,654)
	Net unrealized gains/(losses)		(1,536)		(1,062)		-		(2,598)
	Amounts reclassified from AOCI		(27)		(852)		1,173		294
	Other comprehensive income/(loss)		(1,563)		(1,914)		1,173		(2,304)
Balance as of March 31, 2017		$	(18,795)	$	(3,179)	$	(227,984)	$	(249,958)
Balance as of January 1, 2016		$	3,394	$	-	$	(217,586)	$	(214,192)
	Net unrealized gains/(losses)		40,180		3,839		-		44,019
	Amounts reclassified from AOCI		(1,020)		(374)		1,126		(268)
	Other comprehensive income/(loss)		39,160		3,465		1,126		43,751
Balance as of March 31, 2016		$	42,554	$	3,465	$	(216,460)	$	(170,441)

Reclassification Out Of Accumulated Other Comprehensive Income [Table Text Block]

Reclassifications from AOCI, and related tax effects, were as follows:
(Dollars in thousands)		Three Months Ended March 31
Details about AOCI		2017		2016		Affected line item in the statement where net income is presented
Securities AFS:
	Realized (gains)/losses on securities AFS	$	(44)	$	(1,654)	Debt securities gains/(losses), net
	Tax expense/(benefit)		17		634	Provision/(benefit) for income taxes
			(27)		(1,020)
Cash flow hedges:
	Realized (gains)/losses on cash flow hedges		(1,380)		(606)	Interest and fees on loans
	Tax expense/(benefit)		528		232	Provision/(benefit) for income taxes
			(852)		(374)
Pension and Postretirement Plans:
	Amortization of prior service cost and net actuarial gain/(loss)		1,900		1,826	Employee compensation, incentives, and benefits
	Tax expense/(benefit)		(727)		(700)	Provision/(benefit) for income taxes
			1,173		1,126
Total reclassification from AOCI		$	294	$	(268)

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2017

Earnings Per Share [Abstract]

Schedule Of Reconciliation Of Earnings/(Loss) Per Common And Diluted Share

The following table provides reconciliations of net income to net income available to common shareholders and the difference between average basic common shares outstanding and average diluted common shares outstanding:
	Three Months Ended
	March 31
(Dollars and shares in thousands, except per share data)	2017		2016
Net income/(loss)	$	58,388	$	52,213
Net income attributable to noncontrolling interest		2,820		2,851
Net income/(loss) attributable to controlling interest		55,568		49,362
Preferred stock dividends		1,550		1,550
Net income/(loss) available to common shareholders	$	54,018	$	47,812
Weighted average common shares outstanding - basic		233,076		234,651
Effect of dilutive securities		3,779		2,015
Weighted average common shares outstanding - diluted		236,855		236,666
Net income/(loss) per share available to common shareholders	$	0.23	$	0.20
Diluted income/(loss) per share available to common shareholders	$	0.23	$	0.20

Schedule Of Anti-Dilutive Options and Awards

The following table presents outstanding options and other equity awards that were excluded from the calculation of diluted earnings per share because they were either anti-dilutive (the exercise price was higher than the weighted-average market price for the period) or the performance conditions have not been met:
	Three Months Ended
	March 31
(Shares in thousands)	2017		2016
Stock options excluded from the calculation of diluted EPS		2,453		4,119
Weighted average exercise price of stock options excluded from the calculation of diluted EPS	$	26.08	$	22.45
Other equity awards excluded from the calculation of diluted EPS		99		1,124

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Pension, Savings, And Other Employee Benefits (Tables)

3 Months Ended

Mar. 31, 2017

Pension, Savings, And Other Employee Benefits [Abstract]

Schedule Of Components Of Net Periodic Benefit Cost

The components of net periodic benefit cost for the three months ended March 31 are as follows:
		Pension Benefits				Other Benefits
(Dollars in thousands)		2017		2016		2017		2016
Components of net periodic benefit cost
Service cost		$	9	$	10	$	27	$	28
Interest cost			7,379		7,882		326		317
Expected return on plan assets			(8,891)		(9,773)		(237)		(229)
Amortization of unrecognized:
	Prior service cost/(credit)		13		49		24		43
	Actuarial (gain)/loss		2,380		2,068		(142)		(233)
Net periodic benefit cost/(credit)		$	890	$	236	$	(2)	$	(74)

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Business Segment Information (Tables)

3 Months Ended

Mar. 31, 2017

Business Segment Information [Abstract]

Amounts Of Consolidated Revenue, Expense, Tax And Assets

		Three Months Ended
		March 31
(Dollars in thousands)	2017		2016
Consolidated
Net interest income	$	189,708	$	172,074
Provision/(provision credit) for loan losses		(1,000)		3,000
Noninterest income		116,939		134,305
Noninterest expense		222,205		226,927
Income/(loss) before income taxes		85,442		76,452
Provision/(benefit) for income taxes		27,054		24,239
Net income/(loss)	$	58,388	$	52,213
Average assets	$	28,806,106	$	26,618,694

	Three Months Ended
	March 31
(Dollars in thousands)	2017		2016
Regional Banking
Net interest income	$	193,389	$	172,312
Provision/(provision credit) for loan losses		3,098		14,767
Noninterest income		58,976		59,276
Noninterest expense		148,065		145,399
Income/(loss) before income taxes		101,202		71,422
Provision/(benefit) for income taxes		36,623		25,407
Net income/(loss)	$	64,579	$	46,015
Average assets	$	17,955,319	$	15,945,192

Fixed Income
Net interest income	$	1,151	$	2,667
Noninterest income		50,822		67,122
Noninterest expense		48,685		58,623
Income/(loss) before income taxes		3,288		11,166
Provision/(benefit) for income taxes		1,024		3,892
Net income/(loss)	$	2,264	$	7,274
Average assets	$	1,875,708	$	2,269,678

Corporate
Net interest income/(expense)	$	(14,100)	$	(14,363)
Noninterest income		5,476		5,723
Noninterest expense		16,880		13,461
Income/(loss) before income taxes		(25,504)		(22,101)
Provision/(benefit) for income taxes		(13,093)		(11,246)
Net income/(loss)	$	(12,411)	$	(10,855)
Average assets	$	7,359,015	$	6,362,224

Non-Strategic
Net interest income	$	9,268	$	11,458
Provision/(provision credit) for loan losses		(4,098)		(11,767)
Noninterest income		1,665		2,184
Noninterest expense		8,575		9,444
Income/(loss) before income taxes		6,456		15,965
Provision/(benefit) for income taxes		2,500		6,186
Net income/(loss)	$	3,956	$	9,779
Average assets	$	1,616,064	$	2,041,600
Certain previously reported amounts have been reclassified to agree with current presentation.

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Variable Interest Entities (Tables)

3 Months Ended

Mar. 31, 2017

Variable Interest Entities [Abstract]

Summary Of VIEs Consolidated By FHN

The following table summarizes VIEs consolidated by FHN as of March 31, 2017 and December 31, 2016:
			March 31, 2017						December 31, 2016
			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				$	-			N/A		$	-			N/A
Loans, net of unearned income					32,486			N/A			35,873			N/A
	Less: Allowance for loan losses				244			N/A			587			N/A
		Total net loans			32,242			N/A			35,286			N/A
Other assets					150		$	76,149			283		$	74,160
Total assets				$	32,392		$	76,149		$	35,569		$	74,160
Liabilities:
Term borrowings				$	19,819			N/A		$	23,126			N/A
Other liabilities					3		$	57,559			3		$	54,746
Total liabilities				$	19,822		$	57,559		$	23,129		$	54,746

Summary of the Impact of Qualifying LIHTC Investments

	Three Months Ended			Three Months Ended
(Dollars in thousands)	March 31, 2017		March 31, 2016
Provision/(benefit) for income taxes:
Amortization of qualifying LIHTC investments	$	2,278		$	2,298
Low income housing tax credits		(2,400)			(2,523)
Other tax benefits related to qualifying LIHTC investments		(919)			(1,110)

Summary Of VIEs Not Consolidated By FHN

The following table summarizes FHN’s nonconsolidated VIEs as of March 31, 2017:
	Maximum		Liability
(Dollars in thousands)	Loss Exposure		Recognized			Classification
Type
Low income housing partnerships	$	71,114		$	14,749	(a)
Other tax credit investments (b) (c)		21,210			-	Other assets
Small issuer trust preferred holdings (d)		332,959			-	Loans, net of unearned income
On-balance sheet trust preferred securitization		49,361			64,812	(e)
Proprietary residential mortgage securitizations		2,330			-	Trading securities
Holdings of agency mortgage-backed securities (d)		4,289,239			-	(f)
Commercial loan troubled debt restructurings (g)		35,295			-	Loans, net of unearned income
Sale-leaseback transaction		14,827			-	(h)

• Maximum loss exposure represents $56.4 million of current investments and $14.7 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 2017.
• 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, $18.0million 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 $64.8 million classified as Term borrowings.
• Includes $.5 billion classified as Trading securities and $3.8 billion classified as Securities available-for-sale.
• Maximum loss exposure represents $34.5 million of current receivables and $.8 million of contractual funding commitments on loans related to commercial borrowers involved in a troubled debt restructuring.
• Maximum loss exposure represents the current loan balance plus additional funding commitments less amounts received from the buyer-lessor.

The following table summarizes FHN's nonconsolidated VIEs as of December 31, 2016:
	Maximum		Liability
(Dollars in thousands)	Loss  Exposure		Recognized		Classification
Type
Low income housing partnerships	$	73,582	$	17,398	(a)
Other tax credit investments (b) (c)		21,898		-	Other assets
Small issuer trust preferred holdings (d)		332,985		-	Loans, net of unearned income
On-balance sheet trust preferred securitization		49,361		64,812	(e)
Proprietary residential mortgage securitizations		2,568		-	Trading securities
Holdings of agency mortgage-backed securities (d)		4,163,313		-	(f)
Commercial loan troubled debt restructurings (g)		42,696		-	Loans, net of unearned income
Sale-leaseback transaction		11,827		-	(h)

• Maximum loss exposure represents $56.2 million of current investments and $17.4 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 2017.
• 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 $64.8 million classified as Term borrowings.
• Includes $.4 billion classified as Trading securities and $3.8 billion classified as Securities available-for-sale.
• Maximum loss exposure represents $37.5 million of current receivables and $5.2 million of contractual funding commitments on loans related to commercial borrowers involved in a troubled debt restructuring.
• Maximum loss exposure represents the current loan balance plus additional funding commitments less amounts received from the buyer-lessor.

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Derivatives (Tables)

3 Months Ended

Mar. 31, 2017

Derivatives [Abstract]

Derivatives Associated With Fixed Income Trading Activities

The following tables summarize FHN’s derivatives associated with fixed income trading activities as of March 31, 2017 and December 31, 2016:
	March 31, 2017
(Dollars in thousands)	Notional		Assets			Liabilities
Customer Interest Rate Contracts	$	1,743,855		$	34,060		$	15,510
Offsetting Upstream Interest Rate Contracts		1,743,855			15,258			31,677
Option Contracts Purchased		60,000			86			-
Forwards and Futures Purchased		3,804,024			11,817			5,230
Forwards and Futures Sold		3,817,997			5,410			13,135

	December 31, 2016
(Dollars in thousands)	Notional		Assets			Liabilities
Customer Interest Rate Contracts	$	1,697,992		$	39,495		$	14,996
Offsetting Upstream Interest Rate Contracts		1,697,992			14,996			39,495
Option Contracts Purchased		17,500			63			-
Option Contracts Written		5,000			-			8
Forwards and Futures Purchased		2,916,750			6,257			26,659
Forwards and Futures Sold		3,085,396			27,330			6,615

Derivatives Associated With Interest Rate Risk Management Activities

The following tables summarize FHN’s derivatives associated with interest rate risk management activities as of March 31, 2017 and December 31, 2016:
		March 31, 2017
(Dollars in thousands)		Notional		Assets			Liabilities
Customer Interest Rate Contracts Hedging
Hedging Instruments and Hedged Items:
	Customer Interest Rate Contracts	$	1,450,711		$	15,401	$	15,388
	Offsetting Upstream Interest Rate Contracts		1,450,711			14,053		14,277
Debt Hedging
Hedging Instruments:
	Interest Rate Swaps	$	900,000		$	749		N/A
Hedged Items:
	Term Borrowings		N/A			N/A	$	900,000	(a)

		December 31, 2016
(Dollars in thousands)		Notional		Assets			Liabilities
Customer Interest Rate Contracts Hedging
Hedging Instruments and Hedged Items:
	Customer Interest Rate Contracts	$	1,357,920		$	17,566	$	14,277
	Offsetting Upstream Interest Rate Contracts		1,357,920			14,277		18,066
Debt Hedging
Hedging Instruments:
	Interest Rate Swaps	$	900,000		$	1,628	$	7,276
Hedged Items:
	Term Borrowings		N/A			N/A	$	900,000	(a)

Represents par value of term borrowings being hedged.

Gains/(Losses) on Derivatives Associated with Interest Rate Risk Management Activities

The following table summarizes gains/(losses) on FHN's derivatives associated with interest rate risk management activities for the three months ended March 31, 2017 and 2016:
		March 31, 2017			March 31, 2016
(Dollars in thousands)		Gains/(Losses)			Gains/(Losses)
Customer Interest Rate Contracts Hedging
Hedging Instruments and Hedged Items:
	Customer Interest Rate Contracts (a)	$	(3,276)	$	12,559
	Offsetting Upstream Interest Rate Contracts (a)		3,276		(12,559)
Debt Hedging
Hedging Instruments:
	Interest Rate Swaps (a)	$	(2,800)	$	17,037
Hedged Items:
	Term Borrowings (a) (b)		2,733		(16,745)

• Gains/losses included in the All other expense section of the Consolidated Condensed Statements of Income.
• 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 tables summarize FHN’s derivative activities associated with cash flow hedges as of March 31, 2017 and December 31, 2016:
		March 31, 2017
(Dollars in thousands)		Notional		Assets			Liabilities
Cash Flow Hedges
Hedging Instruments:
	Interest Rate Swaps	$	900,000		$	1,286		N/A
Hedged Items:
	Variability in Cash Flows Related to Debt Instruments (Primarily Loans)		N/A		$	900,000		N/A

		December 31, 2016
(Dollars in thousands)		Notional		Assets			Liabilities
Cash Flow Hedges
Hedging Instruments:
	Interest Rate Swaps	$	250,000			N/A	$	2,045
Hedged Items:
	Variability in Cash Flows Related to Debt Instruments (Primarily Loans)		N/A		$	250,000		N/A

Gains/(Losses) on Derivatives Associated with Cash Flow Hedges

The following table summarizes gains/(losses) on FHN's derivatives associated with cash flow hedges for the three months ended March 31, 2017 and 2016:
		March 31, 2017			March 31, 2016
(Dollars in thousands)		Gains/(Losses)			Gains/(Losses)
Cash Flow Hedges
Hedging Instruments:
	Interest Rate Swaps (a) (b)	$	(3,101)	$	5,618
Hedged Items:
	Variability in Cash Flows Related to Debt Instruments (Primarily Loans)		N/A		N/A

• Amount represents the pre-tax gains/(losses) included within AOCI.
• Includes approximately $1.5 million of losses expected to be reclassified into earnings in the next twelve months.

Schedule Of Derivative Activities Associated With Trust Preferred Loans

The following tables summarize FHN’s derivative activities associated with held-to-maturity trust preferred loans as of March 31, 2017 and December 31, 2016:
		March 31,2017
(Dollars in thousands)		Notional			Assets				Liabilities
Loan Portfolio Hedging
Hedging Instruments:
	Interest Rate Swaps		$	6,500			N/A			$	134
Hedged Items:
	Trust Preferred Loans (a)			N/A		$	6,500	(b)			N/A

		December 31, 2016
(Dollars in thousands)		Notional			Assets				Liabilities
Loan Portfolio Hedging
Hedging Instruments:
	Interest Rate Swaps		$	6,500			N/A			$	208
Hedged Items:
	Trust Preferred Loans (a)			N/A		$	6,500	(b)			N/A

• Assets included in the Loans, net of unearned income section of the Consolidated Condensed Statements of Condition.
• Represents principal balance being hedged.

Gains/(Losses) on Derivatives Associated with Trust Preferred Loans

The following table summarizes gains/(losses) on FHN's derivatives associated with held-to-maturity trust preferred loans for the three months ended March 31, 2017 and 2016:
		March 31, 2017			March 31, 2016
(Dollars in thousands)		Gains/(Losses)			Gains/(Losses)
Loan Portfolio Hedging
Hedging Instruments:
	Interest Rate Swaps	$	74	$	43
Hedged Items:
	Trust Preferred Loans (a)	$	(74)	$	(42)

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 details of derivative assets and collateral received as presented on the Consolidated Condensed Statements of Condition as of March 31, 2017 and December 31, 2016:
								Gross amounts not offset in the
								Statements of Condition
			Gross amounts		Net amounts of		Derivative
	Gross amounts		offset in the		assets presented		liabilities
	of recognized		Statements of		in the Statements		available for		Collateral
(Dollars in thousands)	assets		Condition		of Condition (a)		offset		Received		Net amount
Derivative assets:
March 31, 2017 (b)	$	80,807	$	-	$	80,807	$	(18,674)	$	(46,189)	$	15,944
December 31, 2016 (b)		87,962		-		87,962		(25,953)		(52,888)		9,121

• Included in Derivative assets on the Consolidated Condensed Statements of Condition. As of March 31, 2017 and December 31, 2016, $17.3 million and $33.7 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.
• Amountsare comprised entirely of interest rate derivative contracts.

Derivative Liabilities and Collateral Pledged

The following table provides details of derivative liabilities and collateral pledged as presented on the Consolidated Condensed Statements of Condition as of March 31, 2017 and December 31, 2016:
									Gross amounts not offset in the
									Statements of Condition
			Gross amounts			Net amounts of
	Gross amounts		offset in the		liabilities presented			Derivative
	of recognized		Statements of			in the Statements		assets available		Collateral
(Dollars in thousands)	liabilities		Condition			of Condition (a)		for offset		pledged		Net amount
Derivative liabilities:
March 31, 2017 (b)	$	76,986	$	-		$	76,986	$	(18,674)	$	(55,378)	$	2,934
December 31, 2016 (b)		96,363		-			96,363		(25,953)		(60,746)		9,664

• Included in Derivative liabilities on the Consolidated Condensed Statements of Condition. As ofMarch 31,2017 and December 31, 2016, $24.4 million and $39.5 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.
• Amounts are comprised entirely of interest rate derivative contracts.

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Master Netting And Similar Agreements (Tables)

3 Months Ended

Mar. 31, 2017

Master Netting And Similar Agreements [Abstract]

Securities Purchased Under Agreements To Resell And Collateral Pledged By Counterparties [Table Text Block]

The following table provides details of Securities purchased under agreements to resell as presented on the Consolidated Condensed Statements of Condition and collateral pledged by counterparties as of March 31, 2017 and December 31, 2016:

								Gross amounts not offset in the
								Statements of Condition
			Gross amounts		Net amounts of		Offsetting		Securities collateral
	Gross amounts		offset in the		assets presented		securities sold		(not recognized on
	of recognized		Statements of		in the Statements		under agreements		FHN's Statements
(Dollars in thousands)	assets		Condition		of Condition		to repurchase		of Condition)		Net amount
Securities purchased under agreements to resell:
March 31, 2017	$	835,222	$	-	$	835,222	$	(150)	$	(828,596)	$	6,476
December 31, 2016		613,682		-		613,682		(1,628)		(603,813)		8,241

Securities Sold Under Agreements To Repurchase And Collateral Pledged By Company [Table Text Block]

The following table provides details of Securities sold under agreements to repurchase as presented on the Consolidated Condensed Statements of Condition and collateral pledged by FHN as of March 31, 2017 and December 31, 2016:

								Gross amounts not offset in the
								Statements of Condition
			Gross amounts		Net amounts of		Offsetting
	Gross amounts		offset in the		liabilities presented		securities
	of recognized		Statements of		in the Statements		purchased under		Securities
(Dollars in thousands)	liabilities		Condition		of Condition		agreements to resell		Collateral		Net amount
Securities sold under agreements to repurchase:
March 31, 2017	$	406,354	$	-	$	406,354	$	(150)	$	(406,185)	$	19
December 31, 2016		453,053		-		453,053		(1,628)		(451,414)		11

Schedule of the Remaining Contractual Maturity by Collateral Type of Securities Sold Under Agreements To Repurchase

Due to the short duration of Securities sold under agreements to repurchase and the nature of collateral involved, the risks associated with these transactions are considered minimal. The following tables provide details, by collateral type, of the remaining contractual maturity of Securities sold under agreements to repurchase as of March 31, 2017 and December 31, 2016:
	March 31, 2017
	Overnight and
(Dollars in thousands)	Continuous		Up to 30 Days		Total
Securities sold under agreements to repurchase:
U.S. treasuries	$	19,344	$	-	$	19,344
Government agency issued MBS		345,156		-		345,156
Government agency issued CMO		29,383		12,471		41,854
Total Securities sold under agreements to repurchase	$	393,883	$	12,471	$	406,354
	December 31, 2016
	Overnight and
(Dollars in thousands)	Continuous		Up to 30 Days		Total
Securities sold under agreements to repurchase:
U.S. treasuries	$	14,864	$	-	$	14,864
Government agency issued MBS		421,771		-		421,771
Government agency issued CMO		-		16,418		16,418
Total Securities sold under agreements to repurchase	$	436,635	$	16,418	$	453,053

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Fair Value Of Assets And Liabilities (Tables)

3 Months Ended

Mar. 31, 2017

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, 2017:
			March 31, 2017
(Dollars in thousands)			Level 1		Level 2		Level 3		Total
Trading securities - fixed income:
	U.S. treasuries		$	-	$	107,264	$	-	$	107,264
	Government agency issued MBS			-		323,058		-		323,058
	Government agency issued CMO			-		213,949		-		213,949
	Other U.S. government agencies			-		88,613		-		88,613
	States and municipalities			-		83,872		-		83,872
	Corporate and other debt			-		346,743		5		346,748
	Equity, mutual funds, and other			-		1,476		-		1,476
		Total trading securities - fixed income		-		1,164,975		5		1,164,980
Trading securities - mortgage banking				-		-		2,330		2,330
Loans held-for-sale				-		1,224		21,221		22,445
Securities available-for-sale:
	U.S. treasuries			-		100		-		100
	Government agency issued MBS			-		2,159,922		-		2,159,922
	Government agency issued CMO			-		1,592,311		-		1,592,311
	Equity, mutual funds, and other			25,221		-		-		25,221
		Total securities available-for-sale		25,221		3,752,333		-		3,777,554
Other assets:
	Deferred compensation assets			34,109		-		-		34,109
	Derivatives, forwards and futures			17,227		-		-		17,227
	Derivatives, interest rate contracts			-		80,893		-		80,893
		Total other assets		51,336		80,893		-		132,229
		Total assets	$	76,557	$	4,999,425	$	23,556	$	5,099,538
Trading liabilities - fixed income:
	U.S. treasuries		$	-	$	657,059	$	-	$	657,059
	States and municipalities			-		11,048		-		11,048
	Corporate and other debt			-		180,083		-		180,083
		Total trading liabilities - fixed income		-		848,190		-		848,190
Other liabilities:
	Derivatives, forwards and futures			18,365		-		-		18,365
	Derivatives, interest rate contracts			-		76,986		-		76,986
	Derivatives, other			-		46		5,950		5,996
		Total other liabilities		18,365		77,032		5,950		101,347
		Total liabilities	$	18,365	$	925,222	$	5,950	$	949,537

The following table presents the balance of assets and liabilities measured at fair value on a recurring basis as of December 31, 2016:
			December 31, 2016
(Dollars in thousands)			Level 1		Level 2		Level 3		Total
Trading securities - fixed income:
	U.S. treasuries		$	-	$	146,988	$	-	$	146,988
	Government agency issued MBS			-		256,611		-		256,611
	Government agency issued CMO			-		150,058		-		150,058
	Other U.S. government agencies			-		52,314		-		52,314
	States and municipalities			-		60,351		-		60,351
	Corporate and other debt			-		227,934		5		227,939
	Equity, mutual funds, and other			-		242		-		242
		Total trading securities - fixed income		-		894,498		5		894,503
Trading securities - mortgage banking				-		-		2,568		2,568
Loans held-for-sale				-		2,345		21,924		24,269
Securities available-for-sale:
	U.S. treasuries			-		100		-		100
	Government agency issued MBS			-		2,208,687		-		2,208,687
	Government agency issued CMO			-		1,547,958		-		1,547,958
	Equity, mutual funds, and other			25,249		-		-		25,249
		Total securities available-for-sale		25,249		3,756,745		-		3,781,994
Other assets:
	Mortgage servicing rights			-		-		985		985
	Deferred compensation assets			32,840		-		-		32,840
	Derivatives, forwards and futures			33,587		-		-		33,587
	Derivatives, interest rate contracts			-		88,025		-		88,025
	Derivatives, other			-		42		-		42
		Total other assets		66,427		88,067		985		155,479
		Total assets	$	91,676	$	4,741,655	$	25,482	$	4,858,813
Trading liabilities - fixed income:
	U.S. treasuries		$	-	$	381,229	$	-	$	381,229
	Other U.S. government agencies			-		844		-		844
	Corporate and other debt			-		179,775		-		179,775
		Total trading liabilities - fixed income		-		561,848		-		561,848
Other liabilities:
	Derivatives, forwards and futures			33,274		-		-		33,274
	Derivatives, interest rate contracts			-		96,371		-		96,371
	Derivatives, other			-		7		6,245		6,252
		Total other liabilities		33,274		96,378		6,245		135,897
		Total liabilities	$	33,274	$	658,226	$	6,245	$	697,745

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, 2017 and 2016, on a recurring basis are summarized as follows:
			Three Months Ended March 31, 2017
			Trading			Loans held-				Net derivative
(Dollars in thousands)			securities			for-sale				liabilities
Balance on January 1, 2017			$	2,573			$	21,924			$	(6,245)
	Total net gains/(losses) included in:
		Net income		17				922				(1)
	Purchases			-				32				-
	Settlements			(255)				(1,574)				296
	Net transfers into/(out of) Level 3			-				(83)	(b)			-
Balance on March 31, 2017			$	2,335			$	21,221			$	(5,950)
Net unrealized gains/(losses) included in net income			$	(27)	(a)		$	922	(a)		$	(1)	(c)

			Three Months Ended March 31, 2016
										Securities			Mortgage
			Trading			Loans held-				available-			servicing			Net derivative
(Dollars in thousands)			securities			for-sale				for-sale			rights, net			liabilities
Balance on January 1, 2016			$	4,377			$	27,418			$	1,500		$	1,841		$	(4,810)
	Total net gains/(losses) included in:
		Net income		147				342				-			-			(109)
	Purchases			-				148				-			-			-
	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)

• Primarily included in mortgage banking income on the Consolidated Condensed Statements of Income.
• Transfers out of loans held-for-sale level 3 measured on a recurring basis generally reflect movements 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 lower of cost or market (“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, 2017, and December 31, 2016, respectively, the following tables provide the level of valuation assumptions used to determine each adjustment and the related carrying value.

	Carrying value at March 31, 2017
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Loans held-for-sale - SBAs	$	-	$	3,476	$	-	$	3,476
Loans held-for-sale - first mortgages		-		-		606		606
Loans, net of unearned income (a)		-		-		30,838		30,838
Real estate acquired by foreclosure (b)		-		-		10,259		10,259
Other assets (c)		-		-		28,667		28,667

	Carrying value at December 31, 2016
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Loans held-for-sale - SBAs	$	-	$	4,286	$	-	$	4,286
Loans held-for-sale - first mortgages		-		-		638		638
Loans, net of unearned income (a)		-		-		31,070		31,070
Real estate acquired by foreclosure (b)		-		-		11,235		11,235
Other assets (c)		-		-		29,609		29,609

• 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.
• Represents the fair valueof 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.

Gains/(losses) on Noncurring Fair Value Measurements

For assets measured on a nonrecurring basis which were still held on the consolidated balance sheet at period end, the following table provides information about the fair value adjustments recorded during the three months ended March 31, 2017 and 2016:
	Net gains/(losses)
	Three months ended March 31,
(Dollars in thousands)	2017		2016
Loans held-for-sale - SBAs	$	(33)	$	-
Loans held-for-sale - first mortgages		3		5
Loans, net of unearned income (a)		484		(4,672)
Real estate acquired by foreclosure (b)		(445)		(536)
Other assets (c)		(942)		(706)
	$	(933)	$	(5,909)

• Write-downs on these loans are recognized as part of provision for loan losses.
• Represents 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, 2017 and December 31, 2016:
(Dollars in Thousands)
	Fair Value at
Level 3 Class	March 31, 2017		Valuation Techniques	Unobservable Input	Values Utilized
Loans held-for-sale - residential real estate		21,827	Discounted cash flow	Prepayment speeds - First mortgage	2% - 12%
				Prepayment speeds - HELOC	3% - 15%
				Foreclosure losses	50% - 70%
				Loss severity trends - First mortgage	5% - 50% of UPB
				Loss severity trends - HELOC	15% - 100% of UPB
Derivative liabilities, other		5,950	Discounted cash flow	Visa covered litigation resolution amount	$4.4 billion - $5.2 billion
				Probability of resolution scenarios	10% - 30%
				Time until resolution	21 - 51 months
Loans, net of unearned income (a)		30,838	Appraisals from comparable properties	Marketability adjustments for specific properties	0% - 10% of appraisal
			Other collateral valuations	Borrowing base certificates adjustment	20% - 50% of gross value
				Financial Statements/Auction values adjustment	0% - 25% of reported value
Real estate acquired by foreclosure (b)		10,259	Appraisals from comparable properties	Adjustment for value changes since appraisal	0% - 10% of appraisal
Other assets (c)		28,667	Discounted cash flow	Adjustments to current sales yields for specific properties	0% - 15% adjustment to yield
			Appraisals from comparable properties	Marketability adjustments for specific properties	0% - 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 Class	December 31, 2016		Valuation Techniques	Unobservable Input	Values Utilized
Loans held-for-sale - residential real estate		22,562	Discounted cash flow	Prepayment speeds - First mortgage	2% - 13%
				Prepayment speeds - HELOC	3% - 15%
				Foreclosure Losses	50% - 70%
				Loss severity trends - First mortgage	5% - 50% of UPB
				Loss severity trends - HELOC	15% - 100% of UPB
Derivative liabilities, other		6,245	Discounted cash flow	Visa covered litigation resolution amount	$4.4 billion - $5.2 billion
				Probability of resolution scenarios	10% - 30%
				Time until resolution	24 - 54 months
Loans, net of unearned income (a)		31,070	Appraisals from comparable properties	Marketability adjustments for specific properties	0% - 10% of appraisal
			Other collateral valuations	Borrowing base certificates adjustment	20% - 50% of gross value
				Financial Statements/Auction values adjustment	0% - 25% of reported value
Real estate acquired by foreclosure (b)		11,235	Appraisals from comparable properties	Adjustment for value changes since appraisal	0% - 10% of appraisal
Other assets (c)		29,609	Discounted cash flow	Adjustments to current sales yields for specific properties	0% - 15% adjustment to yield
			Appraisals from comparable properties	Marketability adjustments for specific properties	0% - 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, 2017
(Dollars in thousands)		Fair value carrying amount		Aggregate unpaid principal		Fair value carrying amount less aggregate unpaid principal
Residential real estate loans held-for-sale reported at fair value:
	Total loans	$	22,444	$	32,427		$	(9,983)
	Nonaccrual loans		6,689		12,305			(5,616)
	Loans 90 days or more past due and still accruing		120		158			(38)
		December 31, 2016
(Dollars in thousands)		Fair value carrying amount		Aggregate unpaid principal		Fair value carrying amount less aggregate unpaid principal
Residential real estate loans held-for-sale reported at fair value:
	Total loans	$	24,269	$	35,262		$	(10,993)
	Nonaccrual loans		6,775		12,910			(6,135)
	Loans 90 days or more past due and still accruing		211		331			(120)

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)			2017		2016
Changes in fair value included in net income:
	Mortgage banking noninterest income
		Loans held-for-sale	$	922	$	342

Summary Of Book Value And Estimated Fair Value Of Financial Instruments

The following table summarizes the book value and estimated fair value of financial instruments recorded in the Consolidated Condensed Statements of Condition as of March 31, 2017:
			March 31, 2017
			Book		Fair 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	$	11,610,889	$	-	$	-	$	11,520,970	$	11,520,970
		Commercial real estate		2,142,423		-		-		2,112,591		2,112,591
	Consumer:
		Consumer real estate		4,407,131		-		-		4,325,035		4,325,035
		Permanent mortgage		393,342		-		-		393,859		393,859
		Credit card & other		334,321		-		-		334,868		334,868
Total loans, net of unearned income and allowance for loan losses				18,888,106		-		-		18,687,323		18,687,323
Short-term financial assets:
	Interest-bearing cash			2,106,597		2,106,597		-		-		2,106,597
	Federal funds sold			31,495		-		31,495		-		31,495
	Securities purchased under agreements to resell			835,222		-		835,222		-		835,222
Total short-term financial assets				2,973,314		2,106,597		866,717		-		2,973,314
Trading securities (a)				1,167,310		-		1,164,975		2,335		1,167,310
Loans held-for-sale				105,456		-		4,700		100,756		105,456
Securities available-for-sale (a) (b)				3,939,278		25,221		3,752,333		161,724		3,939,278
Securities held-to-maturity				14,354		-		-		14,803		14,803
Derivative assets (a)				98,120		17,227		80,893		-		98,120
Other assets:
	Tax credit investments			96,824		-		-		94,884		94,884
	Deferred compensation assets			34,109		34,109		-		-		34,109
Total other assets				130,933		34,109		-		94,884		128,993
Nonearning assets:
	Cash & due from banks			369,290		369,290		-		-		369,290
	Fixed income receivables			168,315		-		168,315		-		168,315
	Accrued interest receivable			61,832		-		61,832		-		61,832
Total nonearning assets				599,437		369,290		230,147		-		599,437
Total assets			$	27,916,308	$	2,552,444	$	6,099,765	$	19,061,825	$	27,714,034
Liabilities:
Deposits:
	Defined maturity		$	1,385,818	$	-	$	1,391,170	$	-	$	1,391,170
	Undefined maturity			22,094,023		-		22,094,023		-		22,094,023
Total deposits				23,479,841		-		23,485,193		-		23,485,193
Trading liabilities (a)				848,190		-		848,190		-		848,190
Short-term financial liabilities:
	Federal funds purchased			504,805		-		504,805		-		504,805
	Securities sold under agreements to repurchase			406,354		-		406,354		-		406,354
	Other short-term borrowings			79,454		-		79,454		-		79,454
Total short-term financial liabilities				990,613		-		990,613		-		990,613
Term borrowings:
	Real estate investment trust-preferred			46,049		-		-		49,350		49,350
	Term borrowings - new market tax credit investment			18,000		-		-		17,934		17,934
	Borrowings secured by residential real estate			19,819		-		-		18,828		18,828
	Other long term borrowings			951,168		-		967,792		-		967,792
Total term borrowings				1,035,036		-		967,792		86,112		1,053,904
Derivative liabilities (a)				101,347		18,365		77,032		5,950		101,347
Other noninterest-bearing liabilities:
	Fixed income payables			21,116		-		21,116		-		21,116
	Accrued interest payable			17,696		-		17,696		-		17,696
Total other noninterest-bearing liabilities				38,812		-		38,812		-		38,812
Total liabilities			$	26,493,839	$	18,365	$	26,407,632	$	92,062	$	26,518,059

• 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.

The following table summarizes the book value and estimated fair value of financial instruments recorded in the Consolidated Statements of Condition as of December 31, 2016:
			December 31, 2016
			Book		Fair 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	$	12,058,689	$	-	$	-	$	11,918,374	$	11,918,374
		Commercial real estate		2,101,671		-		-		2,078,306		2,078,306
	Consumer:
		Consumer real estate		4,473,395		-		-		4,385,669		4,385,669
		Permanent mortgage		406,836		-		-		404,930		404,930
		Credit card & other		346,861		-		-		347,577		347,577
Total loans, net of unearned income and allowance for loan losses				19,387,452		-		-		19,134,856		19,134,856
Short-term financial assets:
	Interest-bearing cash			1,060,034		1,060,034		-		-		1,060,034
	Federal funds sold			50,838		-		50,838		-		50,838
	Securities purchased under agreements to resell			613,682		-		613,682		-		613,682
Total short-term financial assets				1,724,554		1,060,034		664,520		-		1,724,554
Trading securities (a)				897,071		-		894,498		2,573		897,071
Loans held-for-sale				111,248		-		6,631		104,617		111,248
Securities available-for-sale (a) (b)				3,943,499		25,249		3,756,745		161,505		3,943,499
Securities held-to-maturity				14,347		-		-		14,773		14,773
Derivative assets (a)				121,654		33,587		88,067		-		121,654
Other assets:
	Tax credit investments			100,105		-		-		98,400		98,400
	Deferred compensation assets			32,840		32,840		-		-		32,840
Total other assets				132,945		32,840		-		98,400		131,240
Nonearning assets:
	Cash & due from banks			373,274		373,274		-		-		373,274
	Fixed income receivables			57,411		-		57,411		-		57,411
	Accrued interest receivable			62,887		-		62,887		-		62,887
Total nonearning assets				493,572		373,274		120,298		-		493,572
Total assets			$	26,826,342	$	1,524,984	$	5,530,759	$	19,516,724	$	26,572,467
Liabilities:
Deposits:
	Defined maturity		$	1,355,133	$	-	$	1,361,104	$	-	$	1,361,104
	Undefined maturity			21,317,230		-		21,317,230		-		21,317,230
Total deposits				22,672,363		-		22,678,334		-		22,678,334
Trading liabilities (a)				561,848		-		561,848		-		561,848
Short-term financial liabilities:
	Federal funds purchased			414,207		-		414,207		-		414,207
	Securities sold under agreements to repurchase			453,053		-		453,053		-		453,053
	Other short-term borrowings			83,177		-		83,177		-		83,177
Total short-term financial liabilities				950,437		-		950,437		-		950,437
Term borrowings:
	Real estate investment trust-preferred			46,032		-		-		49,350		49,350
	Term borrowings - new market tax credit investment			18,000		-		-		17,918		17,918
	Borrowings secured by residential real estate			23,126		-		-		21,969		21,969
	Other long term borrowings			953,498		-		965,066		-		965,066
Total term borrowings				1,040,656		-		965,066		89,237		1,054,303
Derivative liabilities (a)				135,897		33,274		96,378		6,245		135,897
Other noninterest-bearing liabilities:
	Fixed income payables			21,002		-		21,002		-		21,002
	Accrued interest payable			10,336		-		10,336		-		10,336
Total other noninterest-bearing liabilities				31,338		-		31,338		-		31,338
Total liabilities			$	25,392,539	$	33,274	$	25,283,401	$	95,482	$	25,412,157

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 $68.6 million.

The following table presents the contractual amount and fair value of unfunded loan commitments and standby and other commitments as of March 31, 2017 and December 31, 2016:
	Contractual Amount				Fair Value
(Dollars in thousands)	March 31, 2017		December 31, 2016		March 31, 2017		December 31, 2016
Unfunded Commitments:
Loan commitments	$	9,430,508	$	8,744,649	$	2,612	$	2,924
Standby and other commitments		273,029		277,549		4,230		4,037

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Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Income tax benefit	$ 27,054	$ 24,239
Accounting Standards Update 201609 [Member] | Minimum [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Income tax benefit	1,000
Accounting Standards Update 201609 [Member] | Maximum [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Income tax benefit	$ 3,000

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Acquisitions and Divestitures (Narrative) (Details) $ in Thousands	3 Months Ended	4 Months Ended
	Apr. 03, 2017 USD ($)	May 04, 2017 USD ($) number	Mar. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Sep. 16, 2016 USD ($)
Business Acquisition [Line Items]
Total assets			$ 29,618,600	$ 28,555,231
Capital Bank Financial Corp [Member]
Business Acquisition [Line Items]
Total assets			$ 10,000,000
Number Of Bank Branches | number		193
Expected cash payment to acquire business, gross		$ 411,000
Estimated Percent Of Common Shares Held By Aquired Entity After Merger		29.00%
Aggregate Transaction Value		$ 2,200,000
Coastal Securities
Business Acquisition [Line Items]
Expected cash payment to acquire business, gross	$ 130,000
As Acquired [Member] | GE Capital Member [Member]
Business Acquisition [Line Items]
Loans acquired					$ 537,400

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Investment Securities (Schedule Of FHN's Investment Securities) (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2017		Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Securities available for sale, Amortized Cost	$ 3,969,748	[1]	$ 3,971,435	[2]
Securities available for sale, Gross Unrealized Gains	18,655	[1]	19,869	[2]
Securities available for sale, Gross Unrealized Losses	(49,125)	[1]	(47,805)	[2]
Securities available for sale, Fair Value	3,939,278	[1]	3,943,499	[2]
Pledged available for sale securities	3,500,000		3,300,000
Schedule Of Held To Maturity Securities [Line Items]
Securities held to maturity, Amortized cost	14,354		14,347
Securities held to maturity, Gross Unrealized Gains	449		426
Securities held to maturity, Gross Unrealized Losses	0		0
Securities held to maturity, Fair Value	14,803		14,773
FRB [Member]
Schedule of Available-for-sale Securities [Line Items]
Restricted investments	68,600		68,600
FHLB-Cincinnati Stock [Member]
Schedule of Available-for-sale Securities [Line Items]
Restricted investments	87,900		87,900
U.S. treasuries
Schedule of Available-for-sale Securities [Line Items]
Securities available for sale, Amortized Cost	100		100
Securities available for sale, Gross Unrealized Gains	0		0
Securities available for sale, Gross Unrealized Losses	0		0
Securities available for sale, Fair Value	100		100
Government Agency Issued Mortgage-Backed Securities ("MBS")
Schedule of Available-for-sale Securities [Line Items]
Securities available for sale, Amortized Cost	2,171,843		2,217,593
Securities available for sale, Gross Unrealized Gains	13,675		14,960
Securities available for sale, Gross Unrealized Losses	(25,596)		(23,866)
Securities available for sale, Fair Value	2,159,922		2,208,687
Government Agency Issued Collateralized Mortgage Obligations ("CMO")
Schedule of Available-for-sale Securities [Line Items]
Securities available for sale, Amortized Cost	1,610,857		1,566,986
Securities available for sale, Gross Unrealized Gains	4,980		4,909
Securities available for sale, Gross Unrealized Losses	(23,526)		(23,937)
Securities available for sale, Fair Value	1,592,311		1,547,958
Equity and other
Schedule of Available-for-sale Securities [Line Items]
Securities available for sale, Amortized Cost	186,948	[3]	186,756	[4]
Securities available for sale, Gross Unrealized Gains	0	[3]	0	[4]
Securities available for sale, Gross Unrealized Losses	(3)	[3]	(2)	[4]
Securities available for sale, Fair Value	186,945	[3]	186,754	[4]
Schedule Of Held To Maturity Securities [Line Items]
Securities held to maturity, Amortized cost	0
Securities held to maturity, Fair Value	0
States And Municipalities
Schedule Of Held To Maturity Securities [Line Items]
Securities held to maturity, Amortized cost	4,354		4,347
Securities held to maturity, Gross Unrealized Gains	386		393
Securities held to maturity, Gross Unrealized Losses	0		0
Securities held to maturity, Fair Value	4,740		4,740
Corporate Bonds
Schedule Of Held To Maturity Securities [Line Items]
Securities held to maturity, Amortized cost	10,000		10,000
Securities held to maturity, Gross Unrealized Gains	63		33
Securities held to maturity, Gross Unrealized Losses	0		0
Securities held to maturity, Fair Value	$ 10,063		$ 10,033

[1] Includes $ 3 . 5 billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes.

[2] Includes $ 3.3 billion of securities pledged to secure public deposits, securities sold under agreements to repu rchase, and for other purposes .

[3] Includes restricted investments in FHLB-Cincinnati stock of $ 87 . 9 million and FRB stock of $ 68.6 million . The remainder is money market, mutual funds, and cost method investments.

[4] Includes restricted investments in FHLB-Cincinnati stock of $ 87.9 million and FRB stock of $ 68.6 million. The remainder is money market , mutual funds, and cost method investments.

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Investment Securities (Schedule Of Amortized Cost And Fair Value By Contractual Maturity) (Details) - USD ($) $ in Thousands		Mar. 31, 2017		Dec. 31, 2016
Schedule of Investments [Line Items]
Within 1 year, Amortized Cost		$ 100
After 1 year; within 5 years, Amortized Cost		0
After 5 years; within 10 years, Amortized Cost		0
After 10 years, Amortized Cost		0
Subtotal, Amortized Cost		100
Within 1 year, Fair Value		100
After 1 year; within 5 years, Fair Value		0
After 5 years; within 10 years, Fair Value		0
After 10 years, Fair Value		0
Subtotal, Fair Value		100
Securities available for sale, Amortized Cost		3,969,748	[1]	$ 3,971,435	[2]
Securities available for sale, Fair Value		3,939,278	[1]	3,943,499	[2]
HTM, Within 1 year, Amortized Cost		0
HTM, After 1 year; within 5 years, Amortized Cost		0
HTM, After 5 years; within 10 years, Amortized Cost		10,000
HTM, After 10 years, Amortized Cost		4,354
HTM Subtotal, Amortized Cost		14,354
HTM, Within 1 year, Fair Value		0
HTM, After 1 year; within 5 years, Fair Value		0
HTM, After 5 years; within 10 years, Fair Value		10,063
HTM, After 10 years, Fair Value		4,740
HTM Subtotal, Fair Value		14,803
Securities held to maturity, Amortized cost		14,354		14,347
Securities held to maturity, Fair Value		14,803		14,773
Government Agency Issued MBS And CMO
Schedule of Investments [Line Items]
Securities available for sale, Amortized Cost	[3]	3,782,700
Securities available for sale, Fair Value	[3]	3,752,233
Securities held to maturity, Amortized cost	[3]	0
Securities held to maturity, Fair Value	[3]	0
Equity and other
Schedule of Investments [Line Items]
Securities available for sale, Amortized Cost		186,948	[4]	186,756	[5]
Securities available for sale, Fair Value		186,945	[4]	$ 186,754	[5]
Securities held to maturity, Amortized cost		0
Securities held to maturity, Fair Value		$ 0

[1] Includes $ 3 . 5 billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes.

[2] Includes $ 3.3 billion of securities pledged to secure public deposits, securities sold under agreements to repu rchase, and for other purposes .

[3] Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

[4] Includes restricted investments in FHLB-Cincinnati stock of $ 87 . 9 million and FRB stock of $ 68.6 million . The remainder is money market, mutual funds, and cost method investments.

[5] Includes restricted investments in FHLB-Cincinnati stock of $ 87.9 million and FRB stock of $ 68.6 million. The remainder is money market , mutual funds, and cost method investments.

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Investment Securities (Schedule Of Realized Gross Gains And Losses On Sale From Available For Sale Portfolio) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017		Mar. 31, 2016	Dec. 31, 2016	[2]
Schedule of Investments [Line Items]
Gross gains on sales of securities	$ 44		$ 3,837
Gross (losses) on sales of securities	0		(2,263)
Net gain/(loss) on sales of securities	44		$ 1,574
Available For Sale Securities	$ 3,939,278	[1]		$ 3,943,499

[1] Includes $ 3 . 5 billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes.

[2] Includes $ 3.3 billion of securities pledged to secure public deposits, securities sold under agreements to repu rchase, and for other purposes .

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Investment Securities (Schedule Of Investments Within The Available For Sale Portfolio That Had Unrealized Losses) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Schedule of Investments [Line Items]
Less than 12 months, Fair Value	$ 2,914,364	$ 2,971,604
Less than 12 months, Unrealized Losses	(44,124)	(42,920)
12 months or longer, Fair Value	111,813	116,527
12 months or longer, Unrealized Losses	(5,001)	(4,885)
Total Fair Value	3,026,177	3,088,131
Total Unrealized Losses	(49,125)	(47,805)
Government Agency Issued Collateralized Mortgage Obligations ("CMO")
Schedule of Investments [Line Items]
Less than 12 months, Fair Value	1,068,010	1,059,471
Less than 12 months, Unrealized Losses	(18,525)	(19,052)
12 months or longer, Fair Value	111,813	116,527
12 months or longer, Unrealized Losses	(5,001)	(4,885)
Total Fair Value	1,179,823	1,175,998
Total Unrealized Losses	(23,526)	(23,937)
Government Agency Issued Mortgage-Backed Securities ("MBS")
Schedule of Investments [Line Items]
Less than 12 months, Fair Value	1,846,348	1,912,126
Less than 12 months, Unrealized Losses	(25,596)	(23,866)
12 months or longer, Fair Value	0	0
12 months or longer, Unrealized Losses	0	0
Total Fair Value	1,846,348	1,912,126
Total Unrealized Losses	(25,596)	(23,866)
Total debt securities
Schedule of Investments [Line Items]
Less than 12 months, Fair Value	2,914,358	2,971,597
Less than 12 months, Unrealized Losses	(44,121)	(42,918)
12 months or longer, Fair Value	111,813	116,527
12 months or longer, Unrealized Losses	(5,001)	(4,885)
Total Fair Value	3,026,171	3,088,124
Total Unrealized Losses	(49,122)	(47,803)
Equity
Schedule of Investments [Line Items]
Less than 12 months, Fair Value	6	7
Less than 12 months, Unrealized Losses	(3)	(2)
12 months or longer, Fair Value	0	0
12 months or longer, Unrealized Losses	0	0
Total Fair Value	6	7
Total Unrealized Losses	$ (3)	$ (2)

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Loans (Narrative) (Details)	3 Months Ended			12 Months Ended
	Mar. 31, 2017 USD ($) number		Mar. 31, 2016 USD ($)	Dec. 31, 2016 USD ($)		Sep. 16, 2016 USD ($)	Dec. 31, 2015 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Troubled debt restructurings loans	$ 270,000,000			$ 285,200,000
Allowance for loan losses	201,968,000		$ 204,034,000	202,068,000			$ 210,242,000
Average balance of impaired loans	291,167,000		310,405,000	310,368,000
Interest income recognized on impaired loan	1,733,000		1,467,000	6,779,000
Loans, net of unearned income	19,090,074,000	[1]	17,574,994,000	19,589,520,000	[1]
Provision for loan losses	(1,000,000)		3,000,000
Allowance - purchased credit impaired loans	590,000		1,148,000	700,000
Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	123,995,000			123,250,000
Commercial loans	13,877,307,000			14,283,610,000
Allowance - purchased credit impaired loans	240,000			319,000
As Acquired | GE Capital Member
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans acquired						$ 537,400,000
Permanent Mortgage Portfolio Segment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	$ 15,893,000		18,754,000	16,289,000			18,947,000
TDR, reduction of interest rate by increment, basis points	0.25%
TDRS Maturities	40 years
Loans, net of unearned income	$ 409,235,000		442,791,000	423,125,000
Modified interest rate increase	1.00%
Provision for loan losses	$ (816,000)		(860,000)
Allowance - purchased credit impaired loans	0		0
Loans Held-For-Sale
Accounts, Notes, Loans and Financing Receivable [Line Items]
Troubled debt restructurings loans	$ 67,200,000			69,300,000
Residential Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk, percentage	25.00%
Consumer Real Estate Portfolio Segment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk, percentage	23.00%
Allowance for loan losses	$ 49,680,000		67,321,000	50,357,000			80,614,000
TDRS Maturities	30 years
Loans, net of unearned income	$ 4,456,811,000	[2]	4,690,230,000	4,523,752,000	[2]
Provision for loan losses	(2,504,000)		(12,102,000)
Allowance - purchased credit impaired loans	350,000		725,000
Allowance For TDRs To Recorded Investment Of TDRs
Accounts, Notes, Loans and Financing Receivable [Line Items]
Troubled debt restructurings loans	$ 43,400,000			$ 44,900,000
Ratio of the allowance for loan losses to loans	16.00%			16.00%
Loans To Mortgage Companies
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income	$ 1,528,982,000			$ 2,045,189,000
Loans To Mortgage Companies | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage contributed in total loan	8.00%
Percentage of commercial & industrial loan portfolio	13.00%
Commercial loans	$ 1,528,982,000			2,045,189,000
Credit Card & Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	12,400,000		11,446,000	12,172,000			$ 11,885,000
Loans, net of unearned income	346,721,000		354,221,000	359,033,000
Provision for loan losses	2,872,000		2,080,000
Allowance - purchased credit impaired loans	$ 0		$ 1,000
Credit Card
Accounts, Notes, Loans and Financing Receivable [Line Items]
Credit card workout program, granted rate reduction	0.00%
Loans, net of unearned income	$ 184,971,000			191,651,000
Heloc And Real Estate Installment Classes
Accounts, Notes, Loans and Financing Receivable [Line Items]
TDR, reduction of interest rate by increment, basis points	0.25%
Modified interest rate increase	2.00%
Restricted And Secured Consumer Real Estate Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income	$ 32,500,000			35,900,000
Finance And Insurance Companies | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage contributed in total loan	13.00%
Percentage of commercial & industrial loan portfolio	22.00%
Commercial loans	$ 2,600,000,000
Finance Insurance And Loans To Mortgage Companies | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of commercial & industrial loan portfolio	35.00%
Maximum | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Forbearance agreements time period	12 months
Maximum | Permanent Mortgage Portfolio Segment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Modified interest rate time period	5 years
Maximum | Credit Card
Accounts, Notes, Loans and Financing Receivable [Line Items]
Payment reductions, time period	1 year
Credit card workout program, term extension	5 years
Maximum | Heloc And Real Estate Installment Classes
Accounts, Notes, Loans and Financing Receivable [Line Items]
Modified interest rate time period	5 years
Minimum | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Forbearance agreements time period	6 months
Minimum | Permanent Mortgage Portfolio Segment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Modified interest rate	2.00%
Modified interest rate time period	5 years
Minimum | Credit Card
Accounts, Notes, Loans and Financing Receivable [Line Items]
Payment reductions, time period	6 months
Minimum | Heloc And Real Estate Installment Classes
Accounts, Notes, Loans and Financing Receivable [Line Items]
Modified interest rate	1.00%
Modified interest rate time period	5 years
Pass | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan grades | number	12
Pass | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan grades | number	1
Special Mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan grades | number	13
Special Mention | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan grades | number	13
Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan grades | number	14
Doubtful
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan grades | number	15
Loss
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan grades | number	16
Loss | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan grades | number	16
PD Grade 1
Accounts, Notes, Loans and Financing Receivable [Line Items]
Lowest expected default probability | number	1
PD Grade 1 | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	$ 78,000			77,000
PD Grade 12 | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	6,862,000			6,377,000
PD Grade 13 | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	3,757,000			$ 4,225,000
PD Grade 13 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loans	$ 500,000
LGD Grade 1 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan grades | number	1
LGD Grade 12 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan grades | number	12
Loan Reassessed | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loans	$ 1,000,000

[1] March 31, 2017 and December 31, 2016 include $30.3 million and $28.5 million, respectively, of held-to-maturity consumer mortgage loans se cured by residential real estate properties in process of foreclosure.

[2] Balances as of March 3 1 , 201 7 and December 31, 201 6 , include $ 32 . 5 million and $ 35 . 9 million of restricted real estate loans, respectively. See Note 13 - Variable Interest Entities for additional information.

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Loans (Schedule Of Loans By Portfolio Segment) (Details) - USD ($) $ in Thousands	Mar. 31, 2017		Dec. 31, 2016		Mar. 31, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income	$ 19,090,074	[1]	$ 19,589,520	[1]	$ 17,574,994
Allowance for loan losses	201,968		202,068		204,034	$ 210,242
Total net loans	18,888,106		19,387,452
Commercial Financial And Industrial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income	11,703,996		12,148,087		10,239,183
Allowance for loan losses	93,107		89,398		80,887	73,637
Commercial Real Estate Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income	2,173,311		2,135,523		1,848,569
Allowance for loan losses	30,888		33,852		25,626	25,159
Consumer Real Estate Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income	4,456,811	[2]	4,523,752	[2]	4,690,230
Allowance for loan losses	49,680		50,357		67,321	80,614
Permanent Mortgage Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income	409,235		423,125		442,791
Allowance for loan losses	15,893		16,289		18,754	18,947
Credit Card And Other Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income	346,721		359,033		354,221
Allowance for loan losses	12,400		12,172		$ 11,446	$ 11,885
Restricted And Secured Consumer Real Estate Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income	$ 32,500		$ 35,900

[1] March 31, 2017 and December 31, 2016 include $30.3 million and $28.5 million, respectively, of held-to-maturity consumer mortgage loans se cured by residential real estate properties in process of foreclosure.

[2] Balances as of March 3 1 , 201 7 and December 31, 201 6 , include $ 32 . 5 million and $ 35 . 9 million of restricted real estate loans, respectively. See Note 13 - Variable Interest Entities for additional information.

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Loans (Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Accretable Yield Movement Schedule Rollforward) (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Loans [Abstract]
Balance, beginning of period		$ 6,871	$ 8,542
Accretion		(851)	(1,151)
Adjustment for payoffs		(273)	(1,777)
Adjustment for charge-offs		0	(663)
Adjustment for pool excess recovery	[1]	(222)	0
Increase in accretable yield	[2]	(295)	4,007
Other		(32)	0
Balance, end of period		$ 5,198	$ 8,958

[1] Represents the removal of accretable difference for the remaining loans in a pool which is now in a recovery state.

[2] Includes changes in the accretable yield due to both transfers from the nonaccretable difference and the impact of changes in the expected timing of the cash flows.

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Loans (Schedule Of Acquired Purchase Credit Impaired Loans By Portfolio Segment) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying value	$ 43,309	$ 46,355
Unpaid balance	46,229	49,863
Commercial Financial And Industrial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying value	38,088	40,368
Unpaid balance	39,257	41,608
Commercial Real Estate Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying value	4,096	4,763
Unpaid balance	5,466	6,514
Consumer Real Estate Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying value	1,072	1,172
Unpaid balance	1,442	1,677
Credit Card And Other Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying value	53	52
Unpaid balance	$ 64	$ 64

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Loans (Information By Class Related To Individually Impaired Loans) (Details) - USD ($) $ in Thousands		3 Months Ended		12 Months Ended
		Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment		$ 283,550		$ 298,778
Unpaid Principal Balance		321,629		336,303
Related Allowance		44,322		45,818
Average Recorded Investment		291,167	$ 310,405	310,368
Interest Income Recognized		1,733	1,467	6,779
Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment		48,066		51,086
Unpaid Principal Balance		55,786		58,776
Related Allowance		3,967		4,413
Average Recorded Investment		49,576	46,471	52,779
Interest Income Recognized		234	113	994
Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment		235,484		247,692
Unpaid Principal Balance		265,843		277,527
Related Allowance		40,355		41,405
Average Recorded Investment		241,591	263,934	257,589
Interest Income Recognized		1,499	1,354	5,785
Impaired Loans With No Related Allowance Recorded [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment		10,395		10,419
Unpaid Principal Balance		16,612		16,636
Related Allowance		0		0
Average Recorded Investment		10,407	11,692	13,552
Interest Income Recognized		0	0	0
Impaired Loans With No Related Allowance Recorded [Member] | Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment		20,443		20,651
Unpaid Principal Balance		35,614		34,553
Related Allowance		0		0
Average Recorded Investment		20,548	19,791	19,841
Interest Income Recognized		0	0	0
Impaired Loans With Related Allowance Recorded [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment		37,671		40,667
Unpaid Principal Balance		39,174		42,140
Related Allowance		3,967		4,413
Average Recorded Investment		39,169	34,779	39,227
Interest Income Recognized		234	113	994
Impaired Loans With Related Allowance Recorded [Member] | Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment		215,041		227,041
Unpaid Principal Balance		230,229		242,974
Related Allowance		40,355		41,405
Average Recorded Investment		221,043	244,143	237,748
Interest Income Recognized		1,499	1,354	5,785
General C I [Member] | Impaired Loans With No Related Allowance Recorded [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment		10,395		10,419
Unpaid Principal Balance		16,612		16,636
Related Allowance		0		0
Average Recorded Investment		10,407	9,224	12,009
Interest Income Recognized		0	0	0
General C I [Member] | Impaired Loans With Related Allowance Recorded [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment		31,392		34,334
Unpaid Principal Balance		31,532		34,470
Related Allowance		2,850		3,294
Average Recorded Investment		32,863	24,921	30,836
Interest Income Recognized		215	87	902
TRUPs [Member] | Impaired Loans With Related Allowance Recorded [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment		3,183		3,209
Unpaid Principal Balance		3,700		3,700
Related Allowance		925		925
Average Recorded Investment		3,196	3,323	3,274
Interest Income Recognized		0	0	0
Income C R E [Member] | Impaired Loans With No Related Allowance Recorded [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment		0		0
Unpaid Principal Balance		0		0
Related Allowance		0		0
Average Recorded Investment		0	2,468	1,543
Interest Income Recognized		0	0	0
Income C R E [Member] | Impaired Loans With Related Allowance Recorded [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment		1,803		1,831
Unpaid Principal Balance		2,181		2,209
Related Allowance		61		62
Average Recorded Investment		1,817	5,138	3,757
Interest Income Recognized		14	20	70
Residential C R E [Member] | Impaired Loans With Related Allowance Recorded [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment		1,293		1,293
Unpaid Principal Balance		1,761		1,761
Related Allowance		131		132
Average Recorded Investment		1,293	1,397	1,360
Interest Income Recognized		5	6	22
Home Equity [Member] | Impaired Loans With No Related Allowance Recorded [Member] | Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment	[1]	10,724		11,383
Unpaid Principal Balance	[1]	22,020		21,662
Related Allowance	[1]	0		0
Average Recorded Investment	[1]	11,054	10,921	11,168
Interest Income Recognized	[1]	0	0	0
Home Equity [Member] | Impaired Loans With Related Allowance Recorded [Member] | Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment		81,438		84,711
Unpaid Principal Balance		83,888		87,126
Related Allowance		16,641		15,927
Average Recorded Investment		83,075	88,580	87,659
Interest Income Recognized		564	487	2,092
R E Installment Loans [Member] | Impaired Loans With No Related Allowance Recorded [Member] | Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment	[1]	3,916		3,957
Unpaid Principal Balance	[1]	4,987		4,992
Related Allowance	[1]	0		0
Average Recorded Investment	[1]	3,937	4,434	4,255
Interest Income Recognized	[1]	0	0	0
R E Installment Loans [Member] | Impaired Loans With Related Allowance Recorded [Member] | Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment		50,394		53,409
Unpaid Principal Balance		51,317		54,559
Related Allowance		12,060		12,875
Average Recorded Investment		51,902	59,971	57,906
Interest Income Recognized		318	317	1,370
Permanent Mortgage Portfolio Segment [Member] | Impaired Loans With No Related Allowance Recorded [Member] | Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment	[1]	5,803		5,311
Unpaid Principal Balance	[1]	8,607		7,899
Related Allowance	[1]	0		0
Average Recorded Investment	[1]	5,557	4,436	4,418
Interest Income Recognized	[1]	0	0	0
Permanent Mortgage Portfolio Segment [Member] | Impaired Loans With Related Allowance Recorded [Member] | Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment		82,940		88,615
Unpaid Principal Balance		94,755		100,983
Related Allowance		11,532		12,470
Average Recorded Investment		85,778	95,232	91,838
Interest Income Recognized		615	547	2,310
Credit Card Other [Member] | Impaired Loans With Related Allowance Recorded [Member] | Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment		269		306
Unpaid Principal Balance		269		306
Related Allowance		122		133
Average Recorded Investment		288	360	345
Interest Income Recognized		$ 2	$ 3	$ 13

[1] All discharged bankruptcy loans are charged down to an estimate of net realizable value and do not carry any allowance.

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Loans (Balances Of Commercial Loan Portfolio Classes, Disaggregated By PD Grade) (Details) $ in Thousands		Mar. 31, 2017 USD ($) number	Dec. 31, 2016 USD ($) number	Mar. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses		$ 201,968	$ 202,068	$ 204,034	$ 210,242
Total loans collectively evaluated for impairment		18,762,625		17,231,978
Total loans individually evaluated for impairment		283,550		312,762
Allowance - collectively evaluated for impairment		157,056		145,010
Allowance - individually evaluated for impairment		44,322		57,876
Allowance - purchased credit impaired loans		590	$ 700	1,148
Purchase credit impaired loans - recorded investment		$ 43,899		$ 30,254
Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percent of total commercial loans		100.00%	100.00%
Allowance for loan losses		$ 123,995	$ 123,250
Total loans collectively evaluated for impairment		13,786,817	14,187,074
Total loans individually evaluated for impairment		48,066	51,086
Total commercial loans		13,877,307	14,283,610
Allowance - collectively evaluated for impairment		119,788	118,518
Allowance - individually evaluated for impairment		3,967	4,413
Allowance - purchased credit impaired loans		$ 240	$ 319
Percent of loan collectively evaluated for impairment		99.00%	99.00%
Percent of loan individually evaluated for impairment		1.00%	1.00%
Purchase credit impaired loans - recorded investment		$ 42,424	$ 45,450
Percent of loan purchased-credit impaired		0.00%	0.00%
General C I [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans collectively evaluated for impairment		$ 9,787,530	$ 9,710,168
Total loans individually evaluated for impairment		41,787	44,753
Total commercial loans		9,867,595	9,795,453
Purchase credit impaired loans - recorded investment		38,278	40,532
Loans To Mortgage Companies [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans collectively evaluated for impairment		1,528,982	2,045,189
Total loans individually evaluated for impairment		0	0
Total commercial loans		1,528,982	2,045,189
Purchase credit impaired loans - recorded investment		0	0
TRUPs [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans collectively evaluated for impairment	[1]	304,236	304,236
Total loans individually evaluated for impairment	[1]	3,183	3,209
Total commercial loans	[1]	307,419	307,445
Valuation allowance		$ 25,500	$ 25,500
Highest internal grade | number		13	13
Purchase credit impaired loans - recorded investment	[1]	$ 0	$ 0
Income C R E [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans collectively evaluated for impairment		2,128,036	2,085,619
Total loans individually evaluated for impairment		1,803	1,831
Total commercial loans		2,133,891	2,092,033
Purchase credit impaired loans - recorded investment		4,052	4,583
Residential C R E [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans collectively evaluated for impairment		38,033	41,862
Total loans individually evaluated for impairment		1,293	1,293
Total commercial loans		39,420	43,490
Purchase credit impaired loans - recorded investment		94	335
Commercial Loan P D Grade One [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		$ 478,635	$ 466,257
Percent of total commercial loans		3.00%	3.00%
Allowance for loan losses		$ 78	$ 77
Commercial Loan P D Grade One [Member] | General C I [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		478,025	465,179
Commercial Loan P D Grade One [Member] | Loans To Mortgage Companies [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		0	0
Commercial Loan P D Grade One [Member] | TRUPs [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade	[1]	0	0
Commercial Loan P D Grade One [Member] | Income C R E [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		610	1,078
Commercial Loan P D Grade One [Member] | Residential C R E [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		0	0
Commercial Loan P D Grade Two [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		$ 902,824	$ 803,012
Percent of total commercial loans		7.00%	6.00%
Allowance for loan losses		$ 442	$ 403
Commercial Loan P D Grade Two [Member] | General C I [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		891,450	791,183
Commercial Loan P D Grade Two [Member] | Loans To Mortgage Companies [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		0	0
Commercial Loan P D Grade Two [Member] | TRUPs [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade	[1]	0	0
Commercial Loan P D Grade Two [Member] | Income C R E [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		11,293	11,742
Commercial Loan P D Grade Two [Member] | Residential C R E [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		81	87
Commercial Loan P D Grade Three [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		$ 962,378	$ 1,107,542
Percent of total commercial loans		7.00%	8.00%
Allowance for loan losses		$ 239	$ 304
Commercial Loan P D Grade Three [Member] | General C I [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		403,403	491,386
Commercial Loan P D Grade Three [Member] | Loans To Mortgage Companies [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		398,860	462,486
Commercial Loan P D Grade Three [Member] | TRUPs [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade	[1]	0	0
Commercial Loan P D Grade Three [Member] | Income C R E [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		160,115	153,670
Commercial Loan P D Grade Three [Member] | Residential C R E [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		0	0
Commercial Loan P D Grade Four [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		$ 1,467,562	$ 1,532,811
Percent of total commercial loans		11.00%	11.00%
Allowance for loan losses		$ 879	$ 953
Commercial Loan P D Grade Four [Member] | General C I [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		998,015	978,282
Commercial Loan P D Grade Four [Member] | Loans To Mortgage Companies [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		227,257	332,107
Commercial Loan P D Grade Four [Member] | TRUPs [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade	[1]	0	0
Commercial Loan P D Grade Four [Member] | Income C R E [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		242,069	222,422
Commercial Loan P D Grade Four [Member] | Residential C R E [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		221	0
Commercial Loan P D Grade Five [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		$ 1,835,298	$ 1,873,965
Percent of total commercial loans		13.00%	13.00%
Allowance for loan losses		$ 7,260	$ 6,670
Commercial Loan P D Grade Five [Member] | General C I [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		1,269,384	1,232,401
Commercial Loan P D Grade Five [Member] | Loans To Mortgage Companies [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		139,434	275,209
Commercial Loan P D Grade Five [Member] | TRUPs [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade	[1]	0	0
Commercial Loan P D Grade Five [Member] | Income C R E [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		426,147	365,653
Commercial Loan P D Grade Five [Member] | Residential C R E [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		333	702
Commercial Loan P D Grade Six [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		$ 2,432,971	$ 2,502,310
Percent of total commercial loans		17.00%	17.00%
Allowance for loan losses		$ 10,600	$ 10,403
Commercial Loan P D Grade Six [Member] | General C I [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		1,535,573	1,540,519
Commercial Loan P D Grade Six [Member] | Loans To Mortgage Companies [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		521,253	614,109
Commercial Loan P D Grade Six [Member] | TRUPs [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade	[1]	0	0
Commercial Loan P D Grade Six [Member] | Income C R E [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		368,073	338,344
Commercial Loan P D Grade Six [Member] | Residential C R E [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		8,072	9,338
Commercial Loan P D Grade Seven [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		$ 2,047,501	$ 2,228,369
Percent of total commercial loans		15.00%	16.00%
Allowance for loan losses		$ 12,767	$ 14,010
Commercial Loan P D Grade Seven [Member] | General C I [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		1,479,242	1,556,117
Commercial Loan P D Grade Seven [Member] | Loans To Mortgage Companies [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		169,444	317,283
Commercial Loan P D Grade Seven [Member] | TRUPs [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade	[1]	0	0
Commercial Loan P D Grade Seven [Member] | Income C R E [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		396,654	352,390
Commercial Loan P D Grade Seven [Member] | Residential C R E [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		2,161	2,579
Commercial Loan P D Grade Eight [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		$ 1,449,113	$ 1,422,786
Percent of total commercial loans		10.00%	10.00%
Allowance for loan losses		$ 24,532	$ 25,986
Commercial Loan P D Grade Eight [Member] | General C I [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		1,042,772	963,359
Commercial Loan P D Grade Eight [Member] | Loans To Mortgage Companies [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		49,588	30,974
Commercial Loan P D Grade Eight [Member] | TRUPs [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade	[1]	0	0
Commercial Loan P D Grade Eight [Member] | Income C R E [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		352,370	425,503
Commercial Loan P D Grade Eight [Member] | Residential C R E [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		4,383	2,950
Commercial Loan P D Grade Nine [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		$ 732,197	$ 725,767
Percent of total commercial loans		5.00%	5.00%
Allowance for loan losses		$ 14,396	$ 13,857
Commercial Loan P D Grade Nine [Member] | General C I [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		641,463	611,774
Commercial Loan P D Grade Nine [Member] | Loans To Mortgage Companies [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		4,643	4,299
Commercial Loan P D Grade Nine [Member] | TRUPs [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade	[1]	0	0
Commercial Loan P D Grade Nine [Member] | Income C R E [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		82,734	105,277
Commercial Loan P D Grade Nine [Member] | Residential C R E [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		3,357	4,417
Commercial Loan P D Grade Ten [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		$ 394,316	$ 423,616
Percent of total commercial loans		3.00%	3.00%
Allowance for loan losses		$ 8,510	$ 8,400
Commercial Loan P D Grade Ten [Member] | General C I [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		344,633	355,359
Commercial Loan P D Grade Ten [Member] | Loans To Mortgage Companies [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		4,499	8,663
Commercial Loan P D Grade Ten [Member] | TRUPs [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade	[1]	0	0
Commercial Loan P D Grade Ten [Member] | Income C R E [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		35,489	50,484
Commercial Loan P D Grade Ten [Member] | Residential C R E [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		9,695	9,110
Commercial Loan P D Grade Eleven [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		$ 251,213	$ 265,371
Percent of total commercial loans		2.00%	2.00%
Allowance for loan losses		$ 6,289	$ 6,556
Commercial Loan P D Grade Eleven [Member] | General C I [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		228,258	238,230
Commercial Loan P D Grade Eleven [Member] | Loans To Mortgage Companies [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		0	0
Commercial Loan P D Grade Eleven [Member] | TRUPs [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade	[1]	0	0
Commercial Loan P D Grade Eleven [Member] | Income C R E [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		17,501	20,600
Commercial Loan P D Grade Eleven [Member] | Residential C R E [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		5,454	6,541
Commercial Loan P D Grade Twelve [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		$ 194,990	$ 190,094
Percent of total commercial loans		1.00%	1.00%
Allowance for loan losses		$ 6,862	$ 6,377
Commercial Loan P D Grade Twelve [Member] | General C I [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		162,238	170,531
Commercial Loan P D Grade Twelve [Member] | Loans To Mortgage Companies [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		13,956	0
Commercial Loan P D Grade Twelve [Member] | TRUPs [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade	[1]	0	0
Commercial Loan P D Grade Twelve [Member] | Income C R E [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		15,831	15,395
Commercial Loan P D Grade Twelve [Member] | Residential C R E [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		2,965	4,168
Commercial Loan P D Grade Thirteen [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		$ 424,963	$ 432,571
Percent of total commercial loans		3.00%	3.00%
Allowance for loan losses		$ 3,757	$ 4,225
Commercial Loan P D Grade Thirteen [Member] | General C I [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		115,844	121,276
Commercial Loan P D Grade Thirteen [Member] | Loans To Mortgage Companies [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		0	0
Commercial Loan P D Grade Thirteen [Member] | TRUPs [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade	[1]	304,236	304,236
Commercial Loan P D Grade Thirteen [Member] | Income C R E [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		4,755	6,748
Commercial Loan P D Grade Thirteen [Member] | Residential C R E [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		128	311
Commercial Loan P D Grade Fourteen Fifteen Sixteen [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		$ 212,856	$ 212,603
Percent of total commercial loans		2.00%	1.00%
Allowance for loan losses		$ 23,177	$ 20,297
Commercial Loan P D Grade Fourteen Fifteen Sixteen [Member] | General C I [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		197,230	194,572
Commercial Loan P D Grade Fourteen Fifteen Sixteen [Member] | Loans To Mortgage Companies [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		48	59
Commercial Loan P D Grade Fourteen Fifteen Sixteen [Member] | TRUPs [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade	[1]	0	0
Commercial Loan P D Grade Fourteen Fifteen Sixteen [Member] | Income C R E [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		14,395	16,313
Commercial Loan P D Grade Fourteen Fifteen Sixteen [Member] | Residential C R E [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		$ 1,183	$ 1,659

[1] Balances as of March 31 , 2017 and December 31, 2016 , presented net of a $ 25.5 million valuation allowance . Based on the underlying structure of the notes , the highest possible internal grade is " 13 ".

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Loans (Loans by FICO Score, Consumer) (Details)		Mar. 31, 2017	Dec. 31, 2016
HELOC [Member] | FICO score 740 or greater
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average refreshed FICO score percentage		57.60%	56.90%
HELOC [Member] | FICO score 720-739
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average refreshed FICO score percentage		8.80%	8.80%
HELOC [Member] | FICO score 700-719
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average refreshed FICO score percentage		8.20%	8.60%
HELOC [Member] | FICO score 660-699
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average refreshed FICO score percentage		12.60%	13.20%
HELOC [Member] | FICO score 620-659
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average refreshed FICO score percentage		5.70%	5.60%
HELOC [Member] | FICO score less than 620
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average refreshed FICO score percentage	[1]	7.10%	6.90%
HELOC [Member] | Total
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average refreshed FICO score percentage		100.00%	100.00%
R/E Installment Loans [Member] | FICO score 740 or greater
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average refreshed FICO score percentage		70.10%	70.30%
R/E Installment Loans [Member] | FICO score 720-739
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average refreshed FICO score percentage		8.00%	8.30%
R/E Installment Loans [Member] | FICO score 700-719
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average refreshed FICO score percentage		7.20%	6.80%
R/E Installment Loans [Member] | FICO score 660-699
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average refreshed FICO score percentage		9.00%	8.40%
R/E Installment Loans [Member] | FICO score 620-659
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average refreshed FICO score percentage		3.00%	3.50%
R/E Installment Loans [Member] | FICO score less than 620
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average refreshed FICO score percentage	[1]	2.70%	2.70%
R/E Installment Loans [Member] | Total
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average refreshed FICO score percentage		100.00%	100.00%
Permanent Mortgage Portfolio Segment | FICO score 740 or greater
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average refreshed FICO score percentage		45.50%	45.00%
Permanent Mortgage Portfolio Segment | FICO score 720-739
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average refreshed FICO score percentage		8.70%	9.50%
Permanent Mortgage Portfolio Segment | FICO score 700-719
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average refreshed FICO score percentage		9.50%	9.20%
Permanent Mortgage Portfolio Segment | FICO score 660-699
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average refreshed FICO score percentage		16.80%	17.10%
Permanent Mortgage Portfolio Segment | FICO score 620-659
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average refreshed FICO score percentage		8.90%	9.10%
Permanent Mortgage Portfolio Segment | FICO score less than 620
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average refreshed FICO score percentage	[1]	10.60%	10.10%
Permanent Mortgage Portfolio Segment | Total
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average refreshed FICO score percentage		100.00%	100.00%

[1] For this group, a majority of the loan balances had FICO scores at the time of the origination that exceeded 620 but have since deteriorated as the loans have seasoned .

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Loans (Accruing And Non-Accruing Loans By Class) (Details) - USD ($) $ in Thousands	Mar. 31, 2017		Dec. 31, 2016		Mar. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income	$ 19,090,074	[1]	$ 19,589,520	[1]	$ 17,574,994
Commercial Financial And Industrial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income	11,703,996		12,148,087		10,239,183
Consumer Real Estate Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income	4,456,811	[2]	4,523,752	[2]	4,690,230
Commercial Real Estate Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income	2,173,311		2,135,523		1,848,569
Permanent Mortgage Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income	409,235		423,125		442,791
Credit Card And Other Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income	346,721		359,033		$ 354,221
General C I [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income	9,829,317		9,754,921
Loans To Mortgage Companies [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income	1,528,982		2,045,189
TRUPs [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income	307,419	[3]	307,445	[4]
Income C R E [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income	2,129,839		2,087,450
Residential C R E [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income	39,326		43,155
Home Equity [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income	1,607,094		1,691,583
R E Installment Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income	2,848,295		2,830,593
Credit Card
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income	184,971		191,651
Other Consumer Loans Class
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income	161,697		167,330
C&I Purchase Credit Impaired Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income	38,278		40,532
CRE Purchase Credit Impaired Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income	4,146		4,918
RE Installment Purchase Credit Impaired Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income	1,422		1,576
Other Purchased Credit Impaired Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income	53		52
Accruing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	18,873,176		19,377,918
Total Accruing	18,946,682		19,443,873
Accruing | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	51,095		42,570
Accruing | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	22,411		23,385
Accruing | Commercial Financial And Industrial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	11,652,903		12,105,988
Total Accruing	11,673,310		12,115,351
Accruing | Commercial Financial And Industrial Portfolio Segment [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	20,081		9,106
Accruing | Commercial Financial And Industrial Portfolio Segment [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	326		257
Accruing | Consumer Real Estate Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	4,337,033		4,398,825
Total Accruing	4,375,469		4,440,940
Accruing | Consumer Real Estate Portfolio Segment [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	23,668		26,005
Accruing | Consumer Real Estate Portfolio Segment [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	14,768		16,110
Accruing | Commercial Real Estate Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	2,170,247		2,132,446
Total Accruing	2,170,916		2,132,747
Accruing | Commercial Real Estate Portfolio Segment [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	669		301
Accruing | Commercial Real Estate Portfolio Segment [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	0		0
Accruing | Permanent Mortgage Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	369,882		385,972
Total Accruing	380,402		395,944
Accruing | Permanent Mortgage Portfolio Segment [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	4,802		4,544
Accruing | Permanent Mortgage Portfolio Segment [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	5,718		5,428
Accruing | Credit Card And Other Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	343,111		354,687
Total Accruing	346,585		358,891
Accruing | Credit Card And Other Portfolio Segment [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	1,875		2,614
Accruing | Credit Card And Other Portfolio Segment [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	1,599		1,590
Accruing | General C I [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	9,781,688		9,720,231
Total Accruing	9,801,862		9,725,453
Accruing | General C I [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	20,073		5,199
Accruing | General C I [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	101		23
Accruing | Loans To Mortgage Companies [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	1,528,934		2,041,408
Total Accruing	1,528,934		2,045,130
Accruing | Loans To Mortgage Companies [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	0		3,722
Accruing | Loans To Mortgage Companies [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	0		0
Accruing | TRUPs [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	304,236	[3]	304,236	[4]
Total Accruing	304,236	[3]	304,236	[4]
Accruing | TRUPs [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	0	[3]	0	[4]
Accruing | TRUPs [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	0	[3]	0	[4]
Accruing | Income C R E [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	2,128,111		2,085,455
Total Accruing	2,128,239		2,085,469
Accruing | Income C R E [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	128		14
Accruing | Income C R E [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	0		0
Accruing | Residential C R E [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	38,531		42,182
Total Accruing	38,531		42,360
Accruing | Residential C R E [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	0		178
Accruing | Residential C R E [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	0		0
Accruing | Home Equity [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	1,521,042		1,602,640
Total Accruing	1,547,901		1,631,496
Accruing | Home Equity [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	16,612		17,997
Accruing | Home Equity [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	10,247		10,859
Accruing | R E Installment Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	2,814,663		2,794,866
Total Accruing	2,826,146		2,807,868
Accruing | R E Installment Loans [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	7,056		7,844
Accruing | R E Installment Loans [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	4,427		5,158
Accruing | Credit Card
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	182,129		188,573
Total Accruing	184,971		191,651
Accruing | Credit Card | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	1,393		1,622
Accruing | Credit Card | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	1,449		1,456
Accruing | Other Consumer Loans Class
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	160,929		166,062
Total Accruing	161,561		167,188
Accruing | Other Consumer Loans Class | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	482		992
Accruing | Other Consumer Loans Class | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	150		134
Accruing | C&I Purchase Credit Impaired Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	38,045		40,113
Total Accruing	38,278		40,532
Accruing | C&I Purchase Credit Impaired Loans | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	8		185
Accruing | C&I Purchase Credit Impaired Loans | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	225		234
Accruing | CRE Purchase Credit Impaired Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	3,605		4,809
Total Accruing	4,146		4,918
Accruing | CRE Purchase Credit Impaired Loans | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	541		109
Accruing | CRE Purchase Credit Impaired Loans | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	0		0
Accruing | RE Installment Purchase Credit Impaired Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	1,328		1,319
Total Accruing	1,422		1,576
Accruing | RE Installment Purchase Credit Impaired Loans | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	0		164
Accruing | RE Installment Purchase Credit Impaired Loans | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	94		93
Accruing | Other Purchased Credit Impaired Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	53		52
Total Accruing	53		52
Accruing | Other Purchased Credit Impaired Loans | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	0		0
Accruing | Other Purchased Credit Impaired Loans | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	0		0
Non-Accruing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	92,915		93,158
Total Non-Accruing	143,392		145,647
Non-Accruing | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	7,299		9,612
Non-Accruing | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	43,178		42,877
Non-Accruing | Commercial Financial And Industrial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	14,511		16,106
Total Non-Accruing	30,686		32,736
Non-Accruing | Commercial Financial And Industrial Portfolio Segment [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	113		374
Non-Accruing | Commercial Financial And Industrial Portfolio Segment [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	16,062		16,256
Non-Accruing | Consumer Real Estate Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	64,138		64,953
Total Non-Accruing	81,342		82,812
Non-Accruing | Consumer Real Estate Portfolio Segment [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	6,180		6,584
Non-Accruing | Consumer Real Estate Portfolio Segment [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	11,024		11,275
Non-Accruing | Commercial Real Estate Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	100		232
Total Non-Accruing	2,395		2,776
Non-Accruing | Commercial Real Estate Portfolio Segment [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	0		460
Non-Accruing | Commercial Real Estate Portfolio Segment [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	2,295		2,084
Non-Accruing | Permanent Mortgage Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	14,166		11,867
Total Non-Accruing	28,833		27,181
Non-Accruing | Permanent Mortgage Portfolio Segment [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	1,006		2,194
Non-Accruing | Permanent Mortgage Portfolio Segment [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	13,661		13,120
Non-Accruing | Credit Card And Other Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	0		0
Total Non-Accruing	136		142
Non-Accruing | Credit Card And Other Portfolio Segment [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	0		0
Non-Accruing | Credit Card And Other Portfolio Segment [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	136		142
Non-Accruing | General C I [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	14,511		16,106
Total Non-Accruing	27,455		29,468
Non-Accruing | General C I [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	113		374
Non-Accruing | General C I [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	12,831		12,988
Non-Accruing | Loans To Mortgage Companies [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	0		0
Total Non-Accruing	48		59
Non-Accruing | Loans To Mortgage Companies [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	0		0
Non-Accruing | Loans To Mortgage Companies [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	48		59
Non-Accruing | TRUPs [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	0	[3]	0	[4]
Total Non-Accruing	3,183	[3]	3,209	[4]
Non-Accruing | TRUPs [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	0	[3]	0	[4]
Non-Accruing | TRUPs [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	3,183	[3]	3,209	[4]
Non-Accruing | Income C R E [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	100		232
Total Non-Accruing	1,600		1,981
Non-Accruing | Income C R E [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	0		460
Non-Accruing | Income C R E [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	1,500		1,289
Non-Accruing | Residential C R E [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	0		0
Total Non-Accruing	795		795
Non-Accruing | Residential C R E [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	0		0
Non-Accruing | Residential C R E [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	795		795
Non-Accruing | Home Equity [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	46,661		46,964
Total Non-Accruing	59,193		60,087
Non-Accruing | Home Equity [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	4,187		4,201
Non-Accruing | Home Equity [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	8,345		8,922
Non-Accruing | R E Installment Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	17,477		17,989
Total Non-Accruing	22,149		22,725
Non-Accruing | R E Installment Loans [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	1,993		2,383
Non-Accruing | R E Installment Loans [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	2,679		2,353
Non-Accruing | Credit Card
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	0		0
Total Non-Accruing	0		0
Non-Accruing | Credit Card | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	0		0
Non-Accruing | Credit Card | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	0		0
Non-Accruing | Other Consumer Loans Class
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	0		0
Total Non-Accruing	136		142
Non-Accruing | Other Consumer Loans Class | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	0		0
Non-Accruing | Other Consumer Loans Class | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	136		142
Non-Accruing | C&I Purchase Credit Impaired Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	0		0
Total Non-Accruing	0		0
Non-Accruing | C&I Purchase Credit Impaired Loans | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	0		0
Non-Accruing | C&I Purchase Credit Impaired Loans | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	0		0
Non-Accruing | CRE Purchase Credit Impaired Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	0		0
Total Non-Accruing	0		0
Non-Accruing | CRE Purchase Credit Impaired Loans | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	0		0
Non-Accruing | CRE Purchase Credit Impaired Loans | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	0		0
Non-Accruing | RE Installment Purchase Credit Impaired Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	0		0
Total Non-Accruing	0		0
Non-Accruing | RE Installment Purchase Credit Impaired Loans | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	0		0
Non-Accruing | RE Installment Purchase Credit Impaired Loans | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	0		0
Non-Accruing | Other Purchased Credit Impaired Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	0		0
Total Non-Accruing	0		0
Non-Accruing | Other Purchased Credit Impaired Loans | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	0		0
Non-Accruing | Other Purchased Credit Impaired Loans | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due	$ 0		$ 0

[1] March 31, 2017 and December 31, 2016 include $30.3 million and $28.5 million, respectively, of held-to-maturity consumer mortgage loans se cured by residential real estate properties in process of foreclosure.

[2] Balances as of March 3 1 , 201 7 and December 31, 201 6 , include $ 32 . 5 million and $ 35 . 9 million of restricted real estate loans, respectively. See Note 13 - Variable Interest Entities for additional information.

[3] TRUPS is presented net of the valuation allowance of $25.5 million .

[4] TRUPS is presented net of the valuation allowance of $25.5 million.

XML

Loans (Schedule Of Troubled Debt Restructurings Occurring During The Year) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017 USD ($) number	Mar. 31, 2016 USD ($) number
General C I [Member]
Financing Receivable, Modifications [Line Items]
Number | number	1	1
Pre-Modification Outstanding Recorded Investment	$ 27	$ 708
Post-Modification Outstanding Recorded Investment	$ 37	$ 708
Commercial Financial And Industrial Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
Number | number	1	1
Pre-Modification Outstanding Recorded Investment	$ 27	$ 708
Post-Modification Outstanding Recorded Investment	$ 37	$ 708
Home Equity [Member]
Financing Receivable, Modifications [Line Items]
Number | number	35	99
Pre-Modification Outstanding Recorded Investment	$ 2,589	$ 7,440
Post-Modification Outstanding Recorded Investment	$ 2,473	$ 7,370
R E Installment Loans [Member]
Financing Receivable, Modifications [Line Items]
Number | number	14	15
Pre-Modification Outstanding Recorded Investment	$ 957	$ 898
Post-Modification Outstanding Recorded Investment	$ 902	$ 895
Consumer Real Estate Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
Number | number	49	114
Pre-Modification Outstanding Recorded Investment	$ 3,546	$ 8,338
Post-Modification Outstanding Recorded Investment	$ 3,375	$ 8,265
Permanent Mortgage Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
Number | number	5	0
Pre-Modification Outstanding Recorded Investment	$ 1,310	$ 0
Post-Modification Outstanding Recorded Investment	$ 1,303	$ 0
Credit Card And Other Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
Number | number	6	4
Pre-Modification Outstanding Recorded Investment	$ 21	$ 19
Post-Modification Outstanding Recorded Investment	$ 20	$ 18
Troubled Debt Restructurings [Member]
Financing Receivable, Modifications [Line Items]
Number | number	61	119
Pre-Modification Outstanding Recorded Investment	$ 4,904	$ 9,065
Post-Modification Outstanding Recorded Investment	$ 4,735	$ 8,991

XML

Loans (Schedule Of Troubled Debt Restructurings Within The Previous 12 Months) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017 USD ($) number	Mar. 31, 2016 USD ($) number
General C I [Member]
Financing Receivable, Modifications [Line Items]
Number | number	1	0
Recorded Investment | $	$ 5,779	$ 0
Home Equity [Member]
Financing Receivable, Modifications [Line Items]
Number | number	4	1
Recorded Investment | $	$ 685	$ 36
Commercial Financial And Industrial Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
Number | number	1	0
Recorded Investment | $	$ 5,779	$ 0
Consumer Real Estate Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
Number | number	4	1
Recorded Investment | $	$ 685	$ 36
Credit Card And Other Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
Number | number	2	0
Recorded Investment | $	$ 7	$ 0
Troubled Debt Restructurings That Subsequently Defaulted [Member]
Financing Receivable, Modifications [Line Items]
Number | number	7	1
Recorded Investment | $	$ 6,471	$ 36

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Allowance For Loan Losses (Rollforward Of The Allowance For Loan Losses By Portfolio Segment) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017		Mar. 31, 2016	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance	$ 202,068		$ 210,242
Charge-offs	(8,413)		(17,612)
Recoveries	9,313		8,404
Provision for loan losses	(1,000)		3,000
Ending Balance	201,968		204,034
Allowance - individually evaluated for impairment	44,322		57,876
Allowance - collectively evaluated for impairment	157,056		145,010
Allowance - purchased credit impaired loans	590		1,148	$ 700
Individually evaluated for impairment	283,550		312,762
Collectively evaluated for impairment	18,762,625		17,231,978
Purchase credit impaired loans - recorded investment	43,899		30,254
Loans, net of unearned income	19,090,074	[1]	17,574,994	19,589,520	[1]
Commercial Financial And Industrial Portfolio Segment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance	89,398		73,637
Charge-offs	(600)		(6,525)
Recoveries	1,676		780
Provision for loan losses	2,633		12,995
Ending Balance	93,107		80,887
Allowance - individually evaluated for impairment	3,775		9,148
Allowance - collectively evaluated for impairment	89,142		71,615
Allowance - purchased credit impaired loans	190		124
Individually evaluated for impairment	44,970		44,465
Collectively evaluated for impairment	11,620,748		10,181,677
Purchase credit impaired loans - recorded investment	38,278		13,041
Loans, net of unearned income	11,703,996		10,239,183	12,148,087
Commercial Real Estate Portfolio Segment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance	33,852		25,159
Charge-offs	0		(642)
Recoveries	221		222
Provision for loan losses	(3,185)		887
Ending Balance	30,888		25,626
Allowance - individually evaluated for impairment	192		488
Allowance - collectively evaluated for impairment	30,646		24,840
Allowance - purchased credit impaired loans	50		298
Individually evaluated for impairment	3,096		8,950
Collectively evaluated for impairment	2,166,069		1,826,677
Purchase credit impaired loans - recorded investment	4,146		12,942
Loans, net of unearned income	2,173,311		1,848,569	2,135,523
Consumer Real Estate Portfolio Segment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance	50,357		80,614
Charge-offs	(3,849)		(6,926)
Recoveries	5,676		5,735
Provision for loan losses	(2,504)		(12,102)
Ending Balance	49,680		67,321
Allowance - individually evaluated for impairment	28,701		31,119
Allowance - collectively evaluated for impairment	20,629		35,477
Allowance - purchased credit impaired loans	350		725
Individually evaluated for impairment	146,472		162,128
Collectively evaluated for impairment	4,308,917		4,523,885
Purchase credit impaired loans - recorded investment	1,422		4,217
Loans, net of unearned income	4,456,811	[2]	4,690,230	4,523,752	[2]
Permanent Mortgage Portfolio Segment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance	16,289		18,947
Charge-offs	(483)		(112)
Recoveries	903		779
Provision for loan losses	(816)		(860)
Ending Balance	15,893		18,754
Allowance - individually evaluated for impairment	11,532		16,975
Allowance - collectively evaluated for impairment	4,361		1,779
Allowance - purchased credit impaired loans	0		0
Individually evaluated for impairment	88,743		96,874
Collectively evaluated for impairment	320,492		345,917
Purchase credit impaired loans - recorded investment	0		0
Loans, net of unearned income	409,235		442,791	423,125
Credit Card & Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance	12,172		11,885
Charge-offs	(3,481)		(3,407)
Recoveries	837		888
Provision for loan losses	2,872		2,080
Ending Balance	12,400		11,446
Allowance - individually evaluated for impairment	122		146
Allowance - collectively evaluated for impairment	12,278		11,299
Allowance - purchased credit impaired loans	0		1
Individually evaluated for impairment	269		345
Collectively evaluated for impairment	346,399		353,822
Purchase credit impaired loans - recorded investment	53		54
Loans, net of unearned income	$ 346,721		$ 354,221	$ 359,033

[1] March 31, 2017 and December 31, 2016 include $30.3 million and $28.5 million, respectively, of held-to-maturity consumer mortgage loans se cured by residential real estate properties in process of foreclosure.

[2] Balances as of March 3 1 , 201 7 and December 31, 201 6 , include $ 32 . 5 million and $ 35 . 9 million of restricted real estate loans, respectively. See Note 13 - Variable Interest Entities for additional information.

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Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2015
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization expense	$ 1,200	$ 1,300
Goodwill [Line Items]
Goodwill	191,371	$ 191,307	$ 191,371	$ 191,307
Non Strategic [Member]
Goodwill [Line Items]
Gross goodwill	200,000		200,000
Accumulated impairments	114,100		114,100
Accumulated divestiture related write-offs	85,900		85,900
Goodwill	$ 0		$ 0

XML

Intangible Assets (Schedule Of Estimated Aggregate Amortization Expense for Intangible Assets) (Details) $ in Thousands	Mar. 31, 2017 USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
Remainder of 2017	$ 3,683
2018	4,679
2019	4,453
2020	1,659
2021	1,574
2022	$ 1,450

XML

Intangible Assets (Summary Of Intangible Assets and Accumulated Amortization Included In The Consolidated Statements of Condition) (Details) - USD ($) $ in Thousands		Mar. 31, 2017	Dec. 31, 2016
Intangible Assets [Line Items]
Gross Carrying Amount		$ 72,037	$ 72,270
Accumulated Amortization		(52,252)	(51,253)
Net Carrying Value		19,785	21,017
Core deposit intangibles
Intangible Assets [Line Items]
Gross Carrying Amount		16,850	16,850
Accumulated Amortization		(5,199)	(4,721)
Net Carrying Value		11,651	12,129
Customer lists
Intangible Assets [Line Items]
Gross Carrying Amount		54,865	54,865
Accumulated Amortization		(47,053)	(46,302)
Net Carrying Value		7,812	8,563
Other
Intangible Assets [Line Items]
Gross Carrying Amount	[1]	322	555
Accumulated Amortization	[1]	0	(230)
Net Carrying Value	[1]	$ 322	$ 325

[1] Balance at March 31, 2017 relates to state banking licenses and are not subject to amortization .

XML

Intangible Assets (Summary Of Gross Goodwill And Accumulated Impairment Losses And Write-Offs Detailed By Reportable Segments) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Goodwill [Line Items]
Goodwill, Beginning balance	$ 191,371	$ 191,307
Additions	0	0
Goodwill, Ending balance	191,371	191,307
Regional Banking [Member]
Goodwill [Line Items]
Goodwill, Beginning balance	93,367	93,303
Additions	0	0
Goodwill, Ending balance	93,367	93,303
Fixed Income [Member]
Goodwill [Line Items]
Goodwill, Beginning balance	98,004	98,004
Additions	0	0
Goodwill, Ending balance	$ 98,004	$ 98,004

XML

Other Income And Other Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
All other income and commissions:
Other service charges	$ 2,984	$ 2,713
ATM interchange fees	2,778	2,958
Deferred compensation	1,827	329
Electronic banking fees	1,323	1,397
Mortgage banking	1,261	1,273
Letter of credit fees	1,036	1,061
Insurance commissions	883	487
Other	2,299	3,071
Total	14,391	13,289
All other expense:
Other insurance and taxes	2,390	3,313
Travel and entertainment	2,348	2,062
Employee training and dues	1,543	1,390
Customer relations	1,336	1,879
Tax credit investments	942	706
Supplies	863	1,026
Miscellaneous loan costs	622	717
Foreclosed real estate	204	(258)
Litigation and regulatory matters	(292)	(475)
Other	8,831	11,719
Total	$ 18,787	$ 22,079

XML

Components of Other Comprehensive Income/(loss) (Schedule of Changes in AOCI) (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance		$ (247,654)	$ (214,192)
Net unrealized gains/(losses)		(2,598)	44,019
Amounts reclassifed from AOCI		294	(268)
Other comprehensive income/(loss)	[1]	(2,304)	43,751
Ending Balance		(249,958)	(170,441)
Securities AFS
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance		(17,232)	3,394
Net unrealized gains/(losses)		(1,536)	40,180
Amounts reclassifed from AOCI		(27)	(1,020)
Other comprehensive income/(loss)		(1,563)	39,160
Ending Balance		(18,795)	42,554
Cash Flow Hedges
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance		(1,265)	0
Net unrealized gains/(losses)		(1,062)	3,839
Amounts reclassifed from AOCI		(852)	(374)
Other comprehensive income/(loss)		(1,914)	3,465
Ending Balance		(3,179)	3,465
Pension and Postretirement Plans
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance		(229,157)	(217,586)
Net unrealized gains/(losses)		0	0
Amounts reclassifed from AOCI		1,173	1,126
Other comprehensive income/(loss)		1,173	1,126
Ending Balance		$ (227,984)	$ (216,460)

[1] Due to the nature of the preferred stock issued by FHN and its subsidiaries, all components of Other comprehensive income/(loss) have been attributed solely to FHN as the controlling interest holder.

XML

Components of Other Comprehensive Income/(loss) (Schedule of Reclassification from AOCI) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Accumulated Other Comprehensive Income Loss [Line Items]
Amounts reclassifed from AOCI	$ 294	$ (268)
Securities AFS
Accumulated Other Comprehensive Income Loss [Line Items]
Realized gains/(losses)	(44)	(1,654)
Tax expense/(benefit)	17	634
Amounts reclassifed from AOCI	(27)	(1,020)
Cash Flow Hedges
Accumulated Other Comprehensive Income Loss [Line Items]
Realized gains/(losses)	(1,380)	(606)
Tax expense/(benefit)	528	232
Amounts reclassifed from AOCI	(852)	(374)
Pension and Postretirement Plans
Accumulated Other Comprehensive Income Loss [Line Items]
Realized gains/(losses)	1,900	1,826
Tax expense/(benefit)	(727)	(700)
Amounts reclassifed from AOCI	$ 1,173	$ 1,126

XML

Earnings Per Share (Schedule Of Reconciliation Of Net Income/(Loss) to Net Income/(Loss) Available to Common Shareholders) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Earnings Per Share [Abstract]
Net income/(loss)	$ 58,388	$ 52,213
Net income attributable to noncontrolling interest	2,820	2,851
Net income/(loss) attributable to controlling interest	55,568	49,362
Preferred stock dividends	1,550	1,550
Net income/(loss) available to common shareholders	$ 54,018	$ 47,812
Weighted average common shares outstanding - basic	233,076	234,651
Effect of dilutive securities	3,779	2,015
Weighted average common shares outstanding - diluted	236,855	236,666
Net income/(loss) per share available to common shareholders	$ 0.23	$ 0.2
Diluted income/(loss) per share available to common shareholders	$ 0.23	$ 0.2

XML

Earnings Per Share (Schedule Of Anti-Dilutive Options and Awards) (Details) - $ / shares shares in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Earnings Per Share [Abstract]
Stock options excluded from the calculation of diluted EPS	2,453	4,119
Weighted average exercise price of stock options excluded from the calculation of diluted EPS	$ 26.08	$ 22.45
Other equity awards excluded from the calculation of diluted EPS	99	1,124

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Contingencies And Other Disclosures (Narrative I) (Details) shares in Millions	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2017 USD ($) number shares	Jun. 30, 2015 USD ($)	Dec. 31, 2008 USD ($)	Dec. 31, 2007 USD ($)	Dec. 31, 2016 USD ($)	Mar. 31, 2008 shares
Loss Contingencies [Line Items]
Estimated Litigation Liability	$ 1,600,000
Number of GSEs to which conventional conforming single-family mortgage loans were predominately sold to | number	2
Loan-to-value ratio at origination	80.00%
Accrued losses on loan repurchase exposure	$ 65,500,000				$ 66,000,000
Mortgage loans originated and sold to agencies			$ 69,500,000,000
Loans sold to GSEs			57,600,000,000
Loans Guaranteed By Ginnie Mae			$ 11,900,000,000
Loans included in FH proprietary securitizations				$ 26,700,000,000
Fha Insured [Member]
Loss Contingencies [Line Items]
Amount Of Insurance Recoveries Company Is Pursuing	75,000,000
Litigation Settlement Expense		$ 212,500,000
Mortgage Securitization Litigation [Member]
Loss Contingencies [Line Items]
Investment in proprietary securitizations subject to lawsuits	83,400,000
Investment in proprietary securitizations subject to indemnifications	$ 409,900,000
Visa Class B Shares [Member]
Loss Contingencies [Line Items]
Number of Visa Class B shares | shares	1.1					2.4
Estimated conversion ratio	165.00%
Contingent liability	$ 800,000
Derivative liability	6,000,000				$ 6,200,000
Historical cost	0
Value of holdings of Visa Class B Shares if converted into Class A shares at the current conversion ratio	163,000,000
Subservicer expenditure reimbursement amount disputed
Loss Contingencies [Line Items]
Actual damages sought by plaintiff	43,500,000
Minimum
Loss Contingencies [Line Items]
Estimated reasonably possible losses in excess of currently established liabilities	0
Maximum
Loss Contingencies [Line Items]
Estimated reasonably possible losses in excess of currently established liabilities	$ 52,000,000

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Pension, Savings, And Other Employee Benefits (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended			12 Months Ended
	Mar. 31, 2017	Sep. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Defined Benefit Plan Disclosure [Line Items]
Estimated social security benefits age	65 years
Contributions to qualified plans	$ 0	$ 165,000	$ 0
Non-Qualified Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Contributions to qualified plans					$ 5,100
Expected pension contribution				$ 5,000
Savings Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Employer investment in qualified defined contribution plan	100.00%		100.00%
Maximum percent of employee pre-tax contributions that may be matched by the Company	6.00%		6.00%

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Pension, Savings, And Other Employee Benefits (Schedule Of Components Of Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Pension Plans Defined Benefit [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 9	$ 10
Interest cost	7,379	7,882
Expected return on plan assets	(8,891)	(9,773)
Amortization of unrecognized, Prior service cost/(credit)	13	49
Amortization of unrecognized, Actuarial (gain)/loss	2,380	2,068
Net periodic benefit cost/(credit)	890	236
Other Postretirement Benefit Plans Defined Benefit [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	27	28
Interest cost	326	317
Expected return on plan assets	(237)	(229)
Amortization of unrecognized, Prior service cost/(credit)	24	43
Amortization of unrecognized, Actuarial (gain)/loss	(142)	(233)
Net periodic benefit cost/(credit)	$ (2)	$ (74)

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Business Segment Information (Amounts Of Consolidated Revenue, Expense, Tax And Assets) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Segment Reporting Information [Line Items]
Net interest income	$ 189,708	$ 172,074
Provision/(provision credit) for loan losses	(1,000)	3,000
Noninterest income	116,939	134,305
Noninterest expense	222,205	226,927
Income/(loss) before income taxes	85,442	76,452
Provision/(benefit) for income taxes	27,054	24,239
Net income/(loss)	58,388	52,213
Average assets	28,806,106	26,618,694
Regional Banking [Member]
Segment Reporting Information [Line Items]
Net interest income	193,389	172,312
Provision/(provision credit) for loan losses	3,098	14,767
Noninterest income	58,976	59,276
Noninterest expense	148,065	145,399
Income/(loss) before income taxes	101,202	71,422
Provision/(benefit) for income taxes	36,623	25,407
Net income/(loss)	64,579	46,015
Average assets	17,955,319	15,945,192
Fixed Income [Member]
Segment Reporting Information [Line Items]
Net interest income	1,151	2,667
Noninterest income	50,822	67,122
Noninterest expense	48,685	58,623
Income/(loss) before income taxes	3,288	11,166
Provision/(benefit) for income taxes	1,024	3,892
Net income/(loss)	2,264	7,274
Average assets	1,875,708	2,269,678
Corporate [Member]
Segment Reporting Information [Line Items]
Net interest income	(14,100)	(14,363)
Noninterest income	5,476	5,723
Noninterest expense	16,880	13,461
Income/(loss) before income taxes	(25,504)	(22,101)
Provision/(benefit) for income taxes	(13,093)	(11,246)
Net income/(loss)	(12,411)	(10,855)
Average assets	7,359,015	6,362,224
Non Strategic [Member]
Segment Reporting Information [Line Items]
Net interest income	9,268	11,458
Provision/(provision credit) for loan losses	(4,098)	(11,767)
Noninterest income	1,665	2,184
Noninterest expense	8,575	9,444
Income/(loss) before income taxes	6,456	15,965
Provision/(benefit) for income taxes	2,500	6,186
Net income/(loss)	3,956	9,779
Average assets	$ 1,616,064	$ 2,041,600

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Variable Interest Entities (Summary Of VIE Consolidated By FHN) (Details) - USD ($) $ in Thousands	Mar. 31, 2017		Dec. 31, 2016		Mar. 31, 2016	Dec. 31, 2015
Assets:
Cash and due from banks	$ 369,290		$ 373,274
Loans, net of unearned income	19,090,074	[1]	19,589,520	[1]	$ 17,574,994
Allowance for loan losses	201,968		202,068		$ 204,034	$ 210,242
Total net loans	18,888,106		19,387,452
Other assets	1,378,260		1,406,711
Total assets	29,618,600		28,555,231
Liabilities:
Term borrowings	1,035,036		1,040,656
Other liabilities	401,997		467,944
Total liabilities	26,878,140		25,850,147
On Balance Sheet Consumer Loan Securitizations [Member]
Assets:
Cash and due from banks	0		0
Loans, net of unearned income	32,486		35,873
Allowance for loan losses	244		587
Total net loans	32,242		35,286
Other assets	150		283
Total assets	32,392		35,569
Liabilities:
Term borrowings	19,819		23,126
Other liabilities	3		3
Total liabilities	19,822		23,129
Rabbi Trusts Used For Deferred Compensation Plans [Member]
Assets:
Other assets	76,149		74,160
Total assets	76,149		74,160
Liabilities:
Other liabilities	57,559		54,746
Total liabilities	$ 57,559		$ 54,746

[1] March 31, 2017 and December 31, 2016 include $30.3 million and $28.5 million, respectively, of held-to-maturity consumer mortgage loans se cured by residential real estate properties in process of foreclosure.

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Variable Interest Entities (Summary of the Impact of Qualifying LIHTC Investments) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Low income housing tax credits [Member]
Variable Interest Entity [Line Items]
Amortization of qualifying LIHTC investments	$ 2,278	$ 2,298
Affordable Housing Tax Credits and Other Tax Benefits	(2,400)	(2,523)
Other tax benefits related to qualifying LIHTC investments [Member]
Variable Interest Entity [Line Items]
Affordable Housing Tax Credits and Other Tax Benefits	$ (919)	$ (1,110)

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Variable Interest Entities (Summary Of VIE Not Consolidated By FHN) (Details) - USD ($) $ in Thousands		Mar. 31, 2017		Dec. 31, 2016		Mar. 31, 2016
Variable Interest Entity [Line Items]
Loans, net of unearned income		$ 19,090,074	[1]	$ 19,589,520	[1]	$ 17,574,994
Term borrowings		1,035,036		1,040,656
Trading securities		1,167,310		897,071
Securities available for sale, Fair Value		3,939,278	[2]	3,943,499	[3]
Low Income Housing Partnerships [Member]
Variable Interest Entity [Line Items]
Maximum Loss Exposure		71,114	[4]	73,582	[5]
Maximum loss exposure, contractual funding commitments		14,700		17,400
Liability Recognized		14,749	[4]	17,398	[5]
Low Income Housing Partnerships [Member] | Other Assets [Member]
Variable Interest Entity [Line Items]
Maximum loss exposure, current investments		56,400		56,200
Other Tax Credit Investments [Member]
Variable Interest Entity [Line Items]
Maximum Loss Exposure	[6],[7]	21,210		21,898
Liability Recognized	[6],[7]	0		0
Other Tax Credit Investments [Member] | Other Assets [Member]
Variable Interest Entity [Line Items]
Maximum loss exposure, current investments		18,000		18,000
Small Issuer Trust Preferred Holdings [Member]
Variable Interest Entity [Line Items]
Maximum Loss Exposure	[8]	332,959		332,985
Liability Recognized	[8]	0		0
On Balance Sheet Trust Preferred Securitization [Member]
Variable Interest Entity [Line Items]
Maximum Loss Exposure		49,361	[9]	49,361	[10]
Liability Recognized		64,812	[9]	64,812	[10]
Loans, net of unearned income		112,500		112,500
Term borrowings		64,800		64,800
Trading securities		1,700		1,700
Proprietary & Agency Residential Mortgage Securitizations [Member]
Variable Interest Entity [Line Items]
Maximum Loss Exposure		2,330		2,568
Liability Recognized		0		0
Holdings Of Agency Mortgage Backed Securities [Member]
Variable Interest Entity [Line Items]
Maximum Loss Exposure	[8]	4,289,239	[11]	4,163,313	[12]
Liability Recognized	[8]	0	[11]	0	[12]
Trading securities		500,000		400,000
Securities available for sale, Fair Value		3,800,000		3,800,000
Commercial Loan Troubled Debt Restructurings [Member]
Variable Interest Entity [Line Items]
Maximum Loss Exposure		35,295	[13]	42,696	[14]
Maximum loss exposure, contractual funding commitments		800		5,200
Liability Recognized		0	[13]	0	[14]
Loans, net of unearned income		34,500		37,500
Sale Leaseback Transaction [Member]
Variable Interest Entity [Line Items]
Maximum Loss Exposure		14,827	[15]	11,827	[16]
Liability Recognized		$ 0	[15]	$ 0	[16]

[1] March 31, 2017 and December 31, 2016 include $30.3 million and $28.5 million, respectively, of held-to-maturity consumer mortgage loans se cured by residential real estate properties in process of foreclosure.

[2] Includes $ 3 . 5 billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes.

[3] Includes $ 3.3 billion of securities pledged to secure public deposits, securities sold under agreements to repu rchase, and for other purposes .

[4] Maximum loss exposure represents $ 56 . 4 million of current investments and $ 14 . 7 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 2017 .

[5] Maximum loss exposure represents $ 56.2 million of current investments and $ 17.4 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 2017 .

[6] A lia bility is not recognized as investments are written down over the life of the related tax credit

[7] Maximum loss exposure represe nts current investment balance. Of the initial investment, $ 18 . 0 million was funded through loans from community development enterprises

[8] Maximum loss exposure represents the value of current investments. A liability is not recognized as FHN is solely a ho lder of the trusts’ securities.

[9] Includes $ 112 . 5 million classified as Loans, net of unearned income, and $ 1 . 7 million classified as Trading securities which are offset by $ 64.8 million classified as Term borrowings.

[10] Includes $ 112.5 million classified as Loans, net of unearned income, and $ 1.7 million classified as Trading securities which are offset by $ 64 . 8 million classified as Term borrowings.

[11] Includes $ .5 b illion classified as Trading securities and $ 3 . 8 billion cla ssified as Securities available-for- sale.

[12] Includes $ . 4 b illion classified as Tradi ng securities and $ 3 . 8 billion cla ssified as Securities available-for- sale.

[13] Ma ximum loss exposure represents $ 34.5 million of current receivables and $ .8 million of contractual funding commitments on loans related to commercial borrowers involved in a troubled debt restructuring

[14] Maximum loss exposure represents $ 37.5 million of current receivables and $ 5.2 million of contractual funding commitments on loans related to commercial borrowers involved in a tro ubled debt restructuring .

[15] Maximum loss exposure represents the current loan balance plus additional funding commitments less amounts received from the buyer-lessor.

[16] Maximum loss exposure represents the current loan balance plus additional funding commitments less amounts received from the buyer-lessor .

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Derivatives (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Derivative Instruments, Gain (Loss) [Line Items]
Collateral cash receivables	$ 41,900		$ 47,800
Collateral cash payables	29,400		32,800
Total trading revenues	42,700	$ 57,600
Other Long-term Debt	1,035,036		1,040,656
Hedged amount of foreign currency denominated loans	$ 1,900		3,800
Cash flow hedge length of time		5 years
Maximum [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Cash flow hedge length of time	7 years
Minimum [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Cash flow hedge length of time	3 years
Cash Flow Hedge | Hedged Items [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Variability in Cash Flows Related to Debt Instruments (Primarily Loans)	$ 650,000	$ 250,000
Visa Class B Shares [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative liabilities related to sale	6,000		6,200
Long Term Debt Hedged With Fair Value Interest Rate Derivatives Using Long Haul Method [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Net fair value of interest rate derivatives hedging	500
Net fair value of interest rate derivatives hedging subordinated debt			7,300
Other Long-term Debt	500,000		500,000
Long Term Debt Hedged With Fair Value Interest Rate Derivatives Using Long Haul Method [Member] | First Tennessee Bank National Association [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Net fair value of interest rate derivatives hedging	300		1,600
Other Long-term Debt	400,000		400,000
Additional Derivative Agreements [Member] | Derivative Instruments With Accelerated Termination Provisions [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Collateral received	120,600		137,500
Securities posted collateral	10,000		12,900
Net fair value of derivative assets with adjustable posting thresholds	30,700		35,900
Net fair value of derivative liabilities with adjustable posting thresholds	19,200		19,600
Additional Derivative Agreements [Member] | Derivative Instruments With Adjustable Collateral Posting Thresholds [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Collateral received	121,200		137,600
Securities posted collateral	33,000		39,300
Net fair value of derivative assets with adjustable posting thresholds	31,300		35,900
Net fair value of derivative liabilities with adjustable posting thresholds	44,100		49,000
Interest Rate Contract [Member] | Cash Flow Hedge | Hedged Items [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Variability in Cash Flows Related to Debt Instruments (Primarily Loans)	$ 900,000		$ 250,000

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Derivatives (Derivatives Associated with Fixed Income Trading Activities) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Customer Interest Rate Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional	$ 1,743,855	$ 1,697,992
Assets	34,060	39,495
Liabilities	15,510	14,996
Offsetting Upstream Interest Rate Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional	1,743,855	1,697,992
Assets	15,258	14,996
Liabilities	31,677	39,495
Put Option [Member] | ShortMember
Derivative Instruments, Gain (Loss) [Line Items]
Notional		5,000
Assets		0
Liabilities		8
Put Option [Member] | LongMember
Derivative Instruments, Gain (Loss) [Line Items]
Notional	60,000	17,500
Assets	86	63
Liabilities	0	0
Forwards And Futures Purchased [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional	3,804,024	2,916,750
Assets	11,817	6,257
Liabilities	5,230	26,659
Forwards And Futures Sold [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional	3,817,997	3,085,396
Assets	5,410	27,330
Liabilities	$ 13,135	$ 6,615

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Derivatives (Derivatives Associated With Interest Rate Risk Management Activities) (Details) - USD ($) $ in Thousands		Mar. 31, 2017	Dec. 31, 2016
Derivative Instruments, Gain (Loss) [Line Items]
Term borrowings		$ 1,035,036	$ 1,040,656
Customer Interest Rate Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional		1,743,855	1,697,992
Assets		34,060	39,495
Liabilities		15,510	14,996
Offsetting Upstream Interest Rate Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional		1,743,855	1,697,992
Assets		15,258	14,996
Liabilities		31,677	39,495
Customer Interest Rate Contracts Hedging [Member] | Hedging Instruments And Hedged Items [Member] | Customer Interest Rate Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional		1,450,711	1,357,920
Assets		15,401	17,566
Liabilities		15,388	14,277
Customer Interest Rate Contracts Hedging [Member] | Hedging Instruments And Hedged Items [Member] | Offsetting Upstream Interest Rate Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional		1,450,711	1,357,920
Assets		14,053	14,277
Liabilities		14,277	18,066
Debt Hedging [Member] | Hedging Instruments [Member] | Interest Rate Swap [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional		900,000	900,000
Assets		749	1,628
Liabilities			7,276
Debt Hedging [Member] | Hedged Items [Member] | Term Borrowings [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Term borrowings	[1]	$ 900,000	$ 900,000

[1] Represents par value of term borrowings being hedged.

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Derivatives (Gains/(Losses) on Derivatives Associated with Interest Rate Risk Management Activities) (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Customer Interest Rate Contracts Hedging [Member] | Hedging Instruments And Hedged Items [Member] | Customer Interest Rate Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains/(Losses) Related to Interest Rate Derivatives	[1]	$ (3,276)	$ 12,559
Customer Interest Rate Contracts Hedging [Member] | Hedging Instruments And Hedged Items [Member] | Offsetting Upstream Interest Rate Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains/(Losses) Related to Interest Rate Derivatives	[1]	3,276	(12,559)
Debt Hedging [Member] | Hedging Instruments [Member] | Interest Rate Swaps [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains/(Losses) Related to Interest Rate Derivatives	[1]	(2,800)	17,037
Debt Hedging [Member] | Hedged Items [Member] | Term Borrowings [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains/(Losses) related to term borrowings	[1],[2]	$ 2,733	$ (16,745)

[1] Gains/losses included in the All other expense section of the Consolidated Condensed Statements of Income.

[2] Represents gains and losses attributable to changes in fair value due to interest rate risk as designated in ASC 815-20 hedging relationships

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Derivatives (Derivatives Associated With Cash Flow Hedges) (Details) - Cash Flow Hedge - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016
Hedging Instruments [Member] | Interest Rate Swap [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional	$ 900,000	$ 250,000
Assets	1,286
Liabilities		2,045
Hedged Items [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Variability in Cash Flows Related to Debt Instruments (Primarily Loans)	650,000		$ 250,000
Hedged Items [Member] | Interest Rate Contract [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Variability in Cash Flows Related to Debt Instruments (Primarily Loans)	$ 900,000	$ 250,000

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Derivatives (Gains/(Losses) on Derivatives Associated with Cash Flow Hedges) (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Derivative Instruments, Gain (Loss) [Line Items]
Gain/Loss expected to be reclassified to earnings in the next twelve months		$ 1,500
Cash Flow Hedge | Hedging Instruments [Member] | Interest Rate Swaps [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains/(Losses)	[1],[2]	$ (3,101)	$ 5,618

[1] Includes approximately $ 1.5 million of losses expected to be reclassified into earnings in the next twelve months

[2] Amount represents the pre-tax gains/(losses) included within AOCI

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Derivatives (Schedule Of Derivative Activities Associated With Trust Preferred Loans) (Details) - USD ($) $ in Thousands		Mar. 31, 2017		Dec. 31, 2016		Mar. 31, 2016
Derivative Instruments, Gain (Loss) [Line Items]
Loans, net of unearned income		$ 19,090,074	[1]	$ 19,589,520	[1]	$ 17,574,994
Loan Portfolio Hedging [Member] | Hedging Instruments [Member] | Interest Rate Swap [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional		6,500		6,500
Liabilities		134		208
Loan Portfolio Hedging [Member] | Hedged Items [Member] | Trust Preferred Loans [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Loans, net of unearned income	[2],[3]	$ 6,500		$ 6,500

[1] March 31, 2017 and December 31, 2016 include $30.3 million and $28.5 million, respectively, of held-to-maturity consumer mortgage loans se cured by residential real estate properties in process of foreclosure.

[2] Represents principal balance being hedged.

[3] Assets included in the Loans, net of unearned income section of the Consolidated Condensed Statements of Condition.

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Derivatives (Gains/(Losses) on Derivatives Associated with Trust Preferred Loans) (Details) - Loan Portfolio Hedging [Member] - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Hedging Instruments [Member] | Interest Rate Swap [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains/(Losses) Related to Interest Rate Derivatives		$ 74	$ 43
Hedged Items [Member] | Trust Preferred Loans [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains/(Losses) Related to Changes in Fair Value Attributable to Interest Rate Risk	[1]	$ (74)	$ (42)

[1] Represents gains and losses attributable to changes in fair value due to interest rate risk as designated in ASC 815-20 hedging relationships

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Derivative Assets And Collateral Received (Details) - USD ($) $ in Thousands		Mar. 31, 2017	Dec. 31, 2016
Derivative [Line Items]
Gross amounts of recognized assets		$ 98,120	$ 121,654
Derivative Assets not subject to master netting agreements		17,300	33,700
Derivatives, Interest Rate Contracts | Subject to Master Netting Agreements
Derivative [Line Items]
Gross amounts of recognized assets	[1]	80,807	87,962
Gross amounts offset in the Statement of Condition	[1]	0	0
Net amounts of assets presented in the Statement of Condition	[1],[2]	80,807	87,962
Derivative liabilities available for offset	[1]	(18,674)	(25,953)
Collateral Received	[1]	(46,189)	(52,888)
Net amount	[1]	$ 15,944	$ 9,121

[1] Amounts are comprised entirely of interest rate derivative contracts.

[2] In cluded in Derivative assets on the Consolidated Condensed Statements of Condition. As of March 31 , 2017 and December 31, 2016, $ 17 . 3 million and $ 33.7 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.

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Derivative Liabilities and Collateral Pledged (Details) - USD ($) $ in Thousands		Mar. 31, 2017	Dec. 31, 2016
Derivative [Line Items]
Gross amounts of recognized liabilities		$ 101,347	$ 135,897
Derivative Liabilities not subject to master netting agreements		24,400	39,500
Derivatives, Interest Rate Contracts | Subject to Master Netting Agreements
Derivative [Line Items]
Gross amounts of recognized liabilities	[1]	76,986	96,363
Gross amounts offset in the Statement of Condition	[1]	0	0
Net amounts of liabilities presented in the Statement of Condition	[1],[2]	76,986	96,363
Derivative assets available for offset	[1]	(18,674)	(25,953)
Collateral pledged	[1]	(55,378)	(60,746)
Net amount	[1]	$ 2,934	$ 9,664

[1] Amounts are comprised entirely of interest rate derivative contracts.

[2] In cluded in Derivative l iabilities on the Consolidated Condensed Statements of Condition. As of March 31 , 2017 and December 31, 2016, $ 24 . 4 million and $ 39.5 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.

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Securities Purchased Under Agreements To Resell And Collateral Pledged By Counterparties (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Securities Purchased under Agreements to Resell [Abstract]
Gross amounts of recognized assets	$ 835,222	$ 613,682
Gross amounts offset in the Statement of Condition	0	0
Net amounts of assets presented in the Statement of Condition	835,222	613,682
Offsetting securities sold under agreements to repurchase	(150)	(1,628)
Securities collateral (not recognized on FHN's Statement of Condition)	(828,596)	(603,813)
Net amount	$ 6,476	$ 8,241

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Securities Sold Under Agreements To Repurchase And Collateral Pledged By Company (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Securities Sold Under Agreements To Repurchase [Abstract]
Gross amounts of recognized liabilities	$ 406,354	$ 453,053
Gross amounts offset in the statement of Condition	0	0
Net amounts of liabilities presented in the Statement of Condition	406,354	453,053
Offsetting securities purchased under agreements to resell	(150)	(1,628)
Securities Collateral	(406,185)	(451,414)
Net amount	$ 19	$ 11

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Schedule of the Remaining Contractual Maturity by Collateral Type of Securities Sold Under Agreements To Repurchase (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	$ 406,354	$ 453,053
U.S. treasuries
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	19,344	14,864
Government agency issued MBS
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	345,156	421,771
Government agency issued CMO
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	41,854	16,418
Overnight and Continuous
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	393,883	436,635
Overnight and Continuous | U.S. treasuries
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	19,344	14,864
Overnight and Continuous | Government agency issued MBS
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	345,156	421,771
Overnight and Continuous | Government agency issued CMO
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	29,383	0
Up to 30 Days
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	12,471	16,418
Up to 30 Days | U.S. treasuries
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	0	0
Up to 30 Days | Government agency issued MBS
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	0	0
Up to 30 Days | Government agency issued CMO
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	$ 12,471	$ 16,418

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Fair Value Of Assets And Liabilities (Narrative) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2017 USD ($) number	Mar. 31, 2016 USD ($)
Fair Value Of Assets And Liabilities [Abstract]
Gain/(loss) on instrument specific credit risk	$ 0.2	$ 0.1
Number of levels assets and liabilities are grouped in | number	3
Long-lived asset impairment		$ 3.7

XML

Fair Value Of Assets And Liabilities (Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Thousands	Mar. 31, 2017		Dec. 31, 2016
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	$ 1,167,310		$ 897,071
Loans held-for-sale	22,445		24,269
Securities available for sale, Fair Value	3,939,278	[1]	3,943,499	[2]
Total other assets	132,229		155,479
Total assets	5,099,538		4,858,813
Total other liabilities	101,347		135,897
Total liabilities	949,537		697,745
Recurring
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, Fair Value	3,777,554		3,781,994
Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Loans held-for-sale	0		0
Securities available for sale, Fair Value	25,221		25,249
Total other assets	51,336		66,427
Total assets	76,557		91,676
Total other liabilities	18,365		33,274
Total liabilities	18,365		33,274
Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Loans held-for-sale	1,224		2,345
Securities available for sale, Fair Value	3,752,333		3,756,745
Total other assets	80,893		88,067
Total assets	4,999,425		4,741,655
Total other liabilities	77,032		96,378
Total liabilities	925,222		658,226
Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Loans held-for-sale	21,221		21,924
Securities available for sale, Fair Value	0		0
Total other assets	0		985
Total assets	23,556		25,482
Total other liabilities	5,950		6,245
Total liabilities	5,950		6,245
Deferred Compensation Assets
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other assets	34,109		32,840
Deferred Compensation Assets | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other assets	34,109		32,840
Deferred Compensation Assets | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other assets	0		0
Deferred Compensation Assets | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other assets	0		0
Mortgage Servicing Rights, Net [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other assets			985
Mortgage Servicing Rights, Net [Member] | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other assets			0
Mortgage Servicing Rights, Net [Member] | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other assets			0
Mortgage Servicing Rights, Net [Member] | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other assets			985
Derivatives, Forwards And Futures
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other assets	17,227		33,587
Total other liabilities	18,365		33,274
Derivatives, Forwards And Futures | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other assets	17,227		33,587
Total other liabilities	18,365		33,274
Derivatives, Forwards And Futures | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other assets	0		0
Total other liabilities	0		0
Derivatives, Forwards And Futures | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other assets	0		0
Total other liabilities	0		0
Derivatives, Interest Rate Contracts
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other assets	80,893		88,025
Total other liabilities	76,986		96,371
Derivatives, Interest Rate Contracts | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other assets	0		0
Total other liabilities	0		0
Derivatives, Interest Rate Contracts | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other assets	80,893		88,025
Total other liabilities	76,986		96,371
Derivatives, Interest Rate Contracts | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other assets	0		0
Total other liabilities	0		0
Derivatives, Other
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other assets			42
Total other liabilities	5,996		6,252
Derivatives, Other | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other assets			0
Total other liabilities	0		0
Derivatives, Other | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other assets			42
Total other liabilities	46		7
Derivatives, Other | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other assets			0
Total other liabilities	5,950		6,245
U.S. treasuries
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, Fair Value	100		100
U.S. treasuries | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, Fair Value	0		0
U.S. treasuries | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, Fair Value	100		100
U.S. treasuries | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, Fair Value	0		0
Government Agency Issued Mortgage-Backed Securities ("MBS")
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, Fair Value	2,159,922		2,208,687
Government Agency Issued Mortgage-Backed Securities ("MBS") | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, Fair Value	0		0
Government Agency Issued Mortgage-Backed Securities ("MBS") | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, Fair Value	2,159,922		2,208,687
Government Agency Issued Mortgage-Backed Securities ("MBS") | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, Fair Value	0		0
Government Agency Issued Collateralized Mortgage Obligations ("CMO")
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, Fair Value	1,592,311		1,547,958
Government Agency Issued Collateralized Mortgage Obligations ("CMO") | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, Fair Value	0		0
Government Agency Issued Collateralized Mortgage Obligations ("CMO") | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, Fair Value	1,592,311		1,547,958
Government Agency Issued Collateralized Mortgage Obligations ("CMO") | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, Fair Value	0		0
Equity, Mutual Funds, And Other
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, Fair Value	25,221		25,249
Equity, Mutual Funds, And Other | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, Fair Value	25,221		25,249
Equity, Mutual Funds, And Other | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, Fair Value	0		0
Equity, Mutual Funds, And Other | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, Fair Value	0		0
Fixed Income
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	1,164,980		894,503
Total trading liabilities - fixed income	848,190		561,848
Fixed Income | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	0		0
Total trading liabilities - fixed income	0		0
Fixed Income | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	1,164,975		894,498
Total trading liabilities - fixed income	848,190		561,848
Fixed Income | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	5		5
Total trading liabilities - fixed income	0		0
Fixed Income | U.S. treasuries
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	107,264		146,988
Total trading liabilities - fixed income	657,059		381,229
Fixed Income | U.S. treasuries | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	0		0
Total trading liabilities - fixed income	0		0
Fixed Income | U.S. treasuries | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	107,264		146,988
Total trading liabilities - fixed income	657,059		381,229
Fixed Income | U.S. treasuries | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	0		0
Total trading liabilities - fixed income	0		0
Fixed Income | Government Agency Issued Mortgage-Backed Securities ("MBS")
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	323,058		256,611
Fixed Income | Government Agency Issued Mortgage-Backed Securities ("MBS") | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	0		0
Fixed Income | Government Agency Issued Mortgage-Backed Securities ("MBS") | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	323,058		256,611
Fixed Income | Government Agency Issued Mortgage-Backed Securities ("MBS") | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	0		0
Fixed Income | Government Agency Issued Collateralized Mortgage Obligations ("CMO")
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	213,949		150,058
Fixed Income | Government Agency Issued Collateralized Mortgage Obligations ("CMO") | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	0		0
Fixed Income | Government Agency Issued Collateralized Mortgage Obligations ("CMO") | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	213,949		150,058
Fixed Income | Government Agency Issued Collateralized Mortgage Obligations ("CMO") | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	0		0
Fixed Income | Other U.S. Government Agencies
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	88,613		52,314
Total trading liabilities - fixed income			844
Fixed Income | Other U.S. Government Agencies | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	0		0
Total trading liabilities - fixed income			0
Fixed Income | Other U.S. Government Agencies | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	88,613		52,314
Total trading liabilities - fixed income			844
Fixed Income | Other U.S. Government Agencies | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	0		0
Total trading liabilities - fixed income			0
Fixed Income | States And Municipalities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	83,872		60,351
Total trading liabilities - fixed income	11,048
Fixed Income | States And Municipalities | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	0		0
Total trading liabilities - fixed income	0
Fixed Income | States And Municipalities | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	83,872		60,351
Total trading liabilities - fixed income	11,048
Fixed Income | States And Municipalities | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	0		0
Total trading liabilities - fixed income	0
Fixed Income | Corporate And Other Debt
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	346,748		227,939
Total trading liabilities - fixed income	180,083		179,775
Fixed Income | Corporate And Other Debt | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	0		0
Total trading liabilities - fixed income	0		0
Fixed Income | Corporate And Other Debt | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	346,743		227,934
Total trading liabilities - fixed income	180,083		179,775
Fixed Income | Corporate And Other Debt | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	5		5
Total trading liabilities - fixed income	0		0
Fixed Income | Equity, Mutual Funds, And Other
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	1,476		242
Fixed Income | Equity, Mutual Funds, And Other | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	0		0
Fixed Income | Equity, Mutual Funds, And Other | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	1,476		242
Fixed Income | Equity, Mutual Funds, And Other | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	0		0
Mortgage Banking
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	2,330		2,568
Mortgage Banking | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	0		0
Mortgage Banking | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	0		0
Mortgage Banking | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	$ 2,330		$ 2,568

[1] Includes $ 3 . 5 billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes.

[2] Includes $ 3.3 billion of securities pledged to secure public deposits, securities sold under agreements to repu rchase, and for other purposes .

XML

Fair Value Of Assets And Liabilities (Summary Of Changes In Level 3 Assets And Liabilities Measured At Fair Value) (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Trading Account Assets [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance		$ 2,573	$ 4,377
Net income		17	147
Purchases, assets		0	0
Settlements, assets		(255)	(1,467)
Net transfers into/(out of) Level 3, assets		0	0
Ending Balance		2,335	3,057
Net unrealized gains/(losses) included in net income	[1]	(27)	(115)
Loans Held For Sale [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance		21,924	27,418
Net income		922	342
Purchases, assets		32	148
Settlements, assets		(1,574)	(1,365)
Net transfers into/(out of) Level 3, assets	[2]	(83)	(256)
Ending Balance		21,221	26,287
Net unrealized gains/(losses) included in net income	[1]	922	342
AFS Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance			1,500
Net income			0
Purchases, assets			0
Settlements, assets			0
Net transfers into/(out of) Level 3, assets			0
Ending Balance			1,500
Net unrealized gains/(losses) included in net income			0
Mortgage Servicing Rights Net [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance			1,841
Net income			0
Purchases, assets			0
Settlements, assets			(116)
Net transfers into/(out of) Level 3, assets			0
Ending Balance			1,725
Net unrealized gains/(losses) included in net income			0
Net Derivative Liabilities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance		(6,245)	(4,810)
Net income		(1)	(109)
Purchases, liabilities		0	0
Settlements, liabilities		296	299
Net transfers in/(out) level 3, liabilities		0	0
Ending Balance		(5,950)	(4,620)
Net unrealized gains/(losses) included in other expense	[3]	$ (1)	$ (109)

[1] Primarily included in mortgage banking income on the Consolidated Condensed Statements of Income.

[2] Transfers out of loans held-for-sale level 3 measured on a recurring basis generally r eflect movements into real estate acquired by foreclosure (level 3 nonrecurring).

[3] Included in Other expense.

XML

Fair Value Of Assets And Liabilities (Nonrecurring Fair Value Measurements) (Details) - USD ($) $ in Thousands		Mar. 31, 2017		Dec. 31, 2016		Mar. 31, 2016
Fair Value Of Assets And Liabilities [Line Items]
Loans held-for-sale		$ 22,445		$ 24,269
Loans, net of unearned income		19,090,074	[1]	19,589,520	[1]	$ 17,574,994
Real estate acquired by foreclosure	[2]	15,144		16,237
Other assets		132,229		155,479
Non Recurring
Fair Value Of Assets And Liabilities [Line Items]
Loans, net of unearned income	[3]	30,838		31,070
Real estate acquired by foreclosure	[4]	10,259		11,235
Other assets	[5]	28,667		29,609
Level 1
Fair Value Of Assets And Liabilities [Line Items]
Loans held-for-sale		0		0
Other assets		51,336		66,427
Level 1 | Non Recurring
Fair Value Of Assets And Liabilities [Line Items]
Loans, net of unearned income	[3]	0		0
Real estate acquired by foreclosure	[4]	0		0
Other assets	[5]	0		0
Level 2
Fair Value Of Assets And Liabilities [Line Items]
Loans held-for-sale		1,224		2,345
Other assets		80,893		88,067
Level 2 | Non Recurring
Fair Value Of Assets And Liabilities [Line Items]
Loans, net of unearned income	[3]	0		0
Real estate acquired by foreclosure	[4]	0		0
Other assets	[5]	0		0
Level 3
Fair Value Of Assets And Liabilities [Line Items]
Loans held-for-sale		21,221		21,924
Other assets		0		985
Level 3 | Non Recurring
Fair Value Of Assets And Liabilities [Line Items]
Loans, net of unearned income	[3]	30,838		31,070
Real estate acquired by foreclosure	[4]	10,259		11,235
Other assets	[5]	28,667		29,609
First Mortgages | Non Recurring
Fair Value Of Assets And Liabilities [Line Items]
Loans held-for-sale		606		638
First Mortgages | Level 1 | Non Recurring
Fair Value Of Assets And Liabilities [Line Items]
Loans held-for-sale		0		0
First Mortgages | Level 2 | Non Recurring
Fair Value Of Assets And Liabilities [Line Items]
Loans held-for-sale		0		0
First Mortgages | Level 3 | Non Recurring
Fair Value Of Assets And Liabilities [Line Items]
Loans held-for-sale		606		638
SBAs [Member] | Non Recurring
Fair Value Of Assets And Liabilities [Line Items]
Loans held-for-sale		3,476		4,286
SBAs [Member] | Level 1 | Non Recurring
Fair Value Of Assets And Liabilities [Line Items]
Loans held-for-sale		0		0
SBAs [Member] | Level 2 | Non Recurring
Fair Value Of Assets And Liabilities [Line Items]
Loans held-for-sale		3,476		4,286
SBAs [Member] | Level 3 | Non Recurring
Fair Value Of Assets And Liabilities [Line Items]
Loans held-for-sale		$ 0		$ 0

[1] March 31, 2017 and December 31, 2016 include $30.3 million and $28.5 million, respectively, of held-to-maturity consumer mortgage loans se cured by residential real estate properties in process of foreclosure.

[2] March 31, 2017 and December 31, 2016 include $ 7.8 million and $8.1 million, respectively, of foreclosed residential real estate.

[3] 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.

[4] 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.

[5] Represents tax credit investments accounted for under the equity method .

XML

Fair Value Of Assets And Liabilities (Gains/(losses) on Noncurring Fair Value Measurements) (Details) - Non Recurring - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Fair Value Of Assets And Liabilities [Line Items]
Net gains/(losses), Loans, net of unearned income	[1]	$ 484	$ (4,672)
Net gains/(losses), Real estate acquired by foreclosure	[2]	(445)	(536)
Net gains/(losses), Other assets	[3]	(942)	(706)
Gain (loss) on financial assets measured on non-recurring basis		(933)	(5,909)
First Mortgages
Fair Value Of Assets And Liabilities [Line Items]
Net gains/(losses), Loans held for sale		3	5
SBAs [Member]
Fair Value Of Assets And Liabilities [Line Items]
Net gains/(losses), Loans held for sale		$ (33)	$ 0

[1] Write-downs on these loans are recognized as part of provision for loan losses.

[2] Represents 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.

[3] Represents tax credit investments accounted for under the equity method .

XML

Fair Value Of Assets And Liabilities (Schedule Of Unobservable Inputs Utilized In Determining The Fair Value Of Level 3 Recurring And Non-Recurring Measurements) (Details) - USD ($) $ in Thousands		3 Months Ended	12 Months Ended
		Mar. 31, 2017	Dec. 31, 2016
Fair Value Inputs Assets Quantitative Information [Line Items]
Loans held-for-sale		$ 22,445	$ 24,269
Other Liabilities, Fair Value Disclosure		101,347	135,897
Real estate acquired by foreclosure	[1]	15,144	16,237
Other assets		132,229	155,479
Residential Real Estate
Fair Value Inputs Assets Quantitative Information [Line Items]
Real estate acquired by foreclosure		7,800	8,100
Non Recurring
Fair Value Inputs Assets Quantitative Information [Line Items]
Real estate acquired by foreclosure	[2]	10,259	11,235
Other assets	[3]	28,667	29,609
Non Recurring | First Mortgages
Fair Value Inputs Assets Quantitative Information [Line Items]
Loans held-for-sale		606	638
Derivatives, Other
Fair Value Inputs Assets Quantitative Information [Line Items]
Other Liabilities, Fair Value Disclosure		5,996	6,252
Other assets			42
Level 3
Fair Value Inputs Assets Quantitative Information [Line Items]
Loans held-for-sale		21,221	21,924
Other Liabilities, Fair Value Disclosure		5,950	6,245
Other assets		0	985
Level 3 | Residential Real Estate
Fair Value Inputs Assets Quantitative Information [Line Items]
Loans held-for-sale		21,827	22,562
Level 3 | Non Recurring
Fair Value Inputs Assets Quantitative Information [Line Items]
Loans, net of unearned income	[4]	30,838	31,070
Real estate acquired by foreclosure	[2]	10,259	11,235
Other assets	[3]	28,667	29,609
Level 3 | Non Recurring | First Mortgages
Fair Value Inputs Assets Quantitative Information [Line Items]
Loans held-for-sale		606	638
Level 3 | Derivatives, Other
Fair Value Inputs Assets Quantitative Information [Line Items]
Other Liabilities, Fair Value Disclosure		5,950	6,245
Other assets			0
Other Assets | Level 3 | Non Recurring
Fair Value Inputs Assets Quantitative Information [Line Items]
Other assets	[3]	$ 28,667	$ 29,609
Discounted Cash Flow | Loans Held-For-Sale | Level 3 | Residential Real Estate
Fair Value Inputs Assets Quantitative Information [Line Items]
Valuation Techniques		Discounted cash flow	Discounted cash flow
Discounted Cash Flow | Derivative Liabilities, Other | Level 3
Fair Value Inputs Assets Quantitative Information [Line Items]
Valuation Techniques		Discounted cash flow	Discounted cash flow
Discounted Cash Flow | Other Assets | Level 3
Fair Value Inputs Assets Quantitative Information [Line Items]
Valuation Techniques		Discounted cash flow	Discounted cash flow
Appraisals From Comparable Properties | Loans, Net Of Unearned Income | Level 3
Fair Value Inputs Assets Quantitative Information [Line Items]
Valuation Techniques		Appraisals from comparable properties	Appraisals from comparable properties
Appraisals From Comparable Properties | Real Estate Acquired By Foreclosure | Level 3
Fair Value Inputs Assets Quantitative Information [Line Items]
Valuation Techniques		Appraisals from comparable properties	Appraisals from comparable properties
Appraisals From Comparable Properties | Other Assets | Level 3
Fair Value Inputs Assets Quantitative Information [Line Items]
Valuation Techniques		Appraisals from comparable properties	Appraisals from comparable properties
Other Collateral Valuations | Loans, Net Of Unearned Income | Level 3
Fair Value Inputs Assets Quantitative Information [Line Items]
Valuation Techniques		Other collateral valuations	Other collateral valuations
Maximum | Discounted Cash Flow | Derivative Liabilities, Other | Level 3 | Derivatives, Other
Fair Value Inputs Assets Quantitative Information [Line Items]
Visa covered litigation resolution amount		$ 5,200,000	$ 5,200,000
Maximum | Discounted Cash Flow | 2% - 12% Values Utilized | Loans Held-For-Sale | Level 3 | Residential Real Estate | First Mortgages
Fair Value Inputs Assets Quantitative Information [Line Items]
Prepayment Speeds		12.00%
Maximum | Discounted Cash Flow | 2% - 13% Values Utilized | Loans Held-For-Sale | Level 3 | Residential Real Estate | First Mortgages
Fair Value Inputs Assets Quantitative Information [Line Items]
Prepayment Speeds			13.00%
Maximum | Discounted Cash Flow | 3% - 15% Values Utilized | Loans Held-For-Sale | Level 3 | Residential Real Estate | Home Equity
Fair Value Inputs Assets Quantitative Information [Line Items]
Prepayment Speeds		15.00%	15.00%
Maximum | Discounted Cash Flow | 50% - 70% Values Utilized | Loans Held-For-Sale | Level 3 | Residential Real Estate
Fair Value Inputs Assets Quantitative Information [Line Items]
Foreclosure losses		70.00%	70.00%
Maximum | Discounted Cash Flow | 5% - 50% Of UPB | Loans Held-For-Sale | Level 3 | Residential Real Estate | First Mortgages
Fair Value Inputs Assets Quantitative Information [Line Items]
Loss severity trends		50.00%	50.00%
Maximum | Discounted Cash Flow | 15% - 100% Of UPB | Loans Held-For-Sale | Level 3 | Residential Real Estate | Home Equity
Fair Value Inputs Assets Quantitative Information [Line Items]
Loss severity trends		100.00%	100.00%
Maximum | Discounted Cash Flow | 10% - 30% Values Utilized | Derivative Liabilities, Other | Level 3 | Derivatives, Other
Fair Value Inputs Assets Quantitative Information [Line Items]
Probability of resolution scenarios		30.00%	30.00%
Maximum | Discounted Cash Flow | 21 - 51 Months | Derivative Liabilities, Other | Level 3 | Derivatives, Other
Fair Value Inputs Assets Quantitative Information [Line Items]
Time until resolution		51 months
Maximum | Discounted Cash Flow | 24 - 54 Months | Derivative Liabilities, Other | Level 3 | Derivatives, Other
Fair Value Inputs Assets Quantitative Information [Line Items]
Time until resolution			54 months
Maximum | Discounted Cash Flow | 0% - 15% Adjustment to Yield | Other Assets | Level 3
Fair Value Inputs Assets Quantitative Information [Line Items]
Adjustments to current sales yields for specific properties		15.00%	15.00%
Maximum | Appraisals From Comparable Properties | 0% - 10% of Appraisal | Loans, Net Of Unearned Income | Level 3
Fair Value Inputs Assets Quantitative Information [Line Items]
Marketability adjustments for specific properties		10.00%	10.00%
Maximum | Appraisals From Comparable Properties | 0% - 10% of Appraisal | Real Estate Acquired By Foreclosure | Level 3
Fair Value Inputs Assets Quantitative Information [Line Items]
Adjustment for value changes since appraisal		10.00%	10.00%
Maximum | Appraisals From Comparable Properties | 0% - 25% Of Appraisal | Other Assets | Level 3
Fair Value Inputs Assets Quantitative Information [Line Items]
Marketability adjustments for specific properties		25.00%	25.00%
Maximum | Other Collateral Valuations | 20% - 50% Of Gross Value | Loans, Net Of Unearned Income | Level 3
Fair Value Inputs Assets Quantitative Information [Line Items]
Borrowing base certificates adjustment		50.00%	50.00%
Maximum | Other Collateral Valuations | 0% - 25% Of Reported Value | Loans, Net Of Unearned Income | Level 3
Fair Value Inputs Assets Quantitative Information [Line Items]
Financial statements/auction values adjustment		25.00%	25.00%
Minimum | Discounted Cash Flow | Derivative Liabilities, Other | Level 3 | Derivatives, Other
Fair Value Inputs Assets Quantitative Information [Line Items]
Visa covered litigation resolution amount		$ 4,400,000	$ 4,400,000
Minimum | Discounted Cash Flow | 2% - 12% Values Utilized | Loans Held-For-Sale | Level 3 | Residential Real Estate | First Mortgages
Fair Value Inputs Assets Quantitative Information [Line Items]
Prepayment Speeds		2.00%
Minimum | Discounted Cash Flow | 2% - 13% Values Utilized | Loans Held-For-Sale | Level 3 | Residential Real Estate | First Mortgages
Fair Value Inputs Assets Quantitative Information [Line Items]
Prepayment Speeds			2.00%
Minimum | Discounted Cash Flow | 3% - 15% Values Utilized | Loans Held-For-Sale | Level 3 | Residential Real Estate | Home Equity
Fair Value Inputs Assets Quantitative Information [Line Items]
Prepayment Speeds		3.00%	3.00%
Minimum | Discounted Cash Flow | 50% - 70% Values Utilized | Loans Held-For-Sale | Level 3 | Residential Real Estate
Fair Value Inputs Assets Quantitative Information [Line Items]
Foreclosure losses		50.00%	50.00%
Minimum | Discounted Cash Flow | 5% - 50% Of UPB | Loans Held-For-Sale | Level 3 | Residential Real Estate | First Mortgages
Fair Value Inputs Assets Quantitative Information [Line Items]
Loss severity trends		5.00%	5.00%
Minimum | Discounted Cash Flow | 15% - 100% Of UPB | Loans Held-For-Sale | Level 3 | Residential Real Estate | Home Equity
Fair Value Inputs Assets Quantitative Information [Line Items]
Loss severity trends		15.00%	15.00%
Minimum | Discounted Cash Flow | 10% - 30% Values Utilized | Derivative Liabilities, Other | Level 3 | Derivatives, Other
Fair Value Inputs Assets Quantitative Information [Line Items]
Probability of resolution scenarios		10.00%	10.00%
Minimum | Discounted Cash Flow | 21 - 51 Months | Derivative Liabilities, Other | Level 3 | Derivatives, Other
Fair Value Inputs Assets Quantitative Information [Line Items]
Time until resolution		21 months
Minimum | Discounted Cash Flow | 24 - 54 Months | Derivative Liabilities, Other | Level 3 | Derivatives, Other
Fair Value Inputs Assets Quantitative Information [Line Items]
Time until resolution			24 months
Minimum | Discounted Cash Flow | 0% - 15% Adjustment to Yield | Other Assets | Level 3
Fair Value Inputs Assets Quantitative Information [Line Items]
Adjustments to current sales yields for specific properties		0.00%	0.00%
Minimum | Appraisals From Comparable Properties | 0% - 10% of Appraisal | Loans, Net Of Unearned Income | Level 3
Fair Value Inputs Assets Quantitative Information [Line Items]
Marketability adjustments for specific properties		0.00%	0.00%
Minimum | Appraisals From Comparable Properties | 0% - 10% of Appraisal | Real Estate Acquired By Foreclosure | Level 3
Fair Value Inputs Assets Quantitative Information [Line Items]
Adjustment for value changes since appraisal		0.00%	0.00%
Minimum | Appraisals From Comparable Properties | 0% - 25% Of Appraisal | Other Assets | Level 3
Fair Value Inputs Assets Quantitative Information [Line Items]
Marketability adjustments for specific properties		0.00%	0.00%
Minimum | Other Collateral Valuations | 20% - 50% Of Gross Value | Loans, Net Of Unearned Income | Level 3
Fair Value Inputs Assets Quantitative Information [Line Items]
Borrowing base certificates adjustment		20.00%	20.00%
Minimum | Other Collateral Valuations | 0% - 25% Of Reported Value | Loans, Net Of Unearned Income | Level 3
Fair Value Inputs Assets Quantitative Information [Line Items]
Financial statements/auction values adjustment		0.00%	0.00%

[1] March 31, 2017 and December 31, 2016 include $ 7.8 million and $8.1 million, respectively, of foreclosed residential real estate.

[2] 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.

[3] Represents tax credit investments accounted for under the equity method .

[4] 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.

XML

Fair Value Of Assets And Liabilities (Summary Of Differences Between The Fair Value Carrying Amount Of Mortgages Held-For-Sale And Aggregate Unpaid Principal Amount) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Loans held-for-sale	$ 22,445	$ 24,269
Fair Value Carrying Amount
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Loans held-for-sale	22,444	24,269
Nonaccrual loans	6,689	6,775
Loans 90 days or more past due and still accruing	120	211
Aggregate Unpaid Principal
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Loans held-for-sale	32,427	35,262
Nonaccrual loans	12,305	12,910
Loans 90 days or more past due and still accruing	158	331
Fair Value Carrying Amount Less Aggregate Unpaid Principal
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Loans held-for-sale	(9,983)	(10,993)
Nonaccrual loans	(5,616)	(6,135)
Loans 90 days or more past due and still accruing	$ (38)	$ (120)

XML

Fair Value Of Assets And Liabilities (Changes In Fair Value Of Assets And Liabilities Which Fair Value Option Included In Current Period Earnings) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Mortgage Banking Noninterest Income | Loans Held-For-Sale
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value included in net income	$ 922	$ 342

XML

Fair Value Of Assets And Liabilities (Summary Of Book Value And Estimated Fair Value Of Financial Instruments) (Details) - USD ($) $ in Thousands		Mar. 31, 2017		Dec. 31, 2016
Assets:
Total loans, net of unearned income and allowance for loan losses		$ 18,888,106		$ 19,387,452
Short-term financial assets:
Interest-bearing cash		2,106,597		1,060,034
Federal funds sold		31,495		50,838
Securities purchased under agreements to resell		835,222		613,682
Trading securities		1,167,310		897,071
Loans held-for-sale	[1]	105,456		111,248
Securities available-for-sale		3,939,278	[2]	3,943,499	[3]
Securities held-to-maturity		14,354		14,347
Derivative assets		98,120		121,654
Other assets:
Total other assets		132,229		155,479
Nonearning assets:
Cash and due from banks		369,290		373,274
Fixed income receivables		168,315		57,411
Total assets		29,618,600		28,555,231
Deposits:
Total deposits		23,479,841		22,672,363
Trading liabilities		848,190		561,848
Short-term financial liabilities:
Federal Funds Purchased		504,805		414,207
Securities sold under agreements to repurchase		406,354		453,053
Other short-term borrowings		79,454		83,177
Term borrowings:
Total term borrowings		1,035,036		1,040,656
Derivative liabilities		101,347		135,897
Other noninterest-bearing liabilities:
Fixed income payables		21,116		21,002
Total liabilities		26,878,140		25,850,147
Fair Value Inputs Level1 [Member]
Short-term financial assets:
Securities available-for-sale		25,221		25,249
Other assets:
Total other assets		51,336		66,427
Fair Value Inputs Level2 [Member]
Short-term financial assets:
Securities available-for-sale		3,752,333		3,756,745
Other assets:
Total other assets		80,893		88,067
Fair Value Inputs Level3 [Member]
Short-term financial assets:
Securities available-for-sale		0		0
Other assets:
Total other assets		0		985
Fair Value Inputs Level3 [Member] | FHLB-Cincinnati Stock [Member]
Other noninterest-bearing liabilities:
Restricted investments		87,900		87,900
Fair Value Inputs Level3 [Member] | FRB Stock [Member]
Other noninterest-bearing liabilities:
Restricted investments		68,600		68,600
Carrying Reported Amount Fair Value Disclosure [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		18,888,106		19,387,452
Short-term financial assets:
Interest-bearing cash		2,106,597		1,060,034
Federal funds sold		31,495		50,838
Securities purchased under agreements to resell		835,222		613,682
Total short-term financial assets		2,973,314		1,724,554
Trading securities	[4]	1,167,310		897,071
Loans held-for-sale		105,456		111,248
Securities available-for-sale	[4]	3,939,278	[5]	3,943,499	[6]
Securities held-to-maturity		14,354		14,347
Derivative assets	[4]	98,120		121,654
Other assets:
Tax credit investments		96,824		100,105
Deferred compensation assets		34,109		32,840
Total other assets		130,933		132,945
Nonearning assets:
Cash and due from banks		369,290		373,274
Fixed income receivables		168,315		57,411
Accrued interest receivable		61,832		62,887
Total nonearning assets		599,437		493,572
Total assets		27,916,308		26,826,342
Deposits:
Defined maturity		1,385,818		1,355,133
Undefined maturity		22,094,023		21,317,230
Total deposits		23,479,841		22,672,363
Trading liabilities	[4]	848,190		561,848
Short-term financial liabilities:
Federal Funds Purchased		504,805		414,207
Securities sold under agreements to repurchase		406,354		453,053
Other short-term borrowings		79,454		83,177
Total short-term financial liabilities		990,613		950,437
Term borrowings:
Real estate investment trust-preferred		46,049		46,032
Term borrowings - new market tax credit investment		18,000		18,000
Borrowings secured by residential real estate		19,819		23,126
Other long term borrowings		951,168		953,498
Total term borrowings		1,035,036		1,040,656
Derivative liabilities	[4]	101,347		135,897
Other noninterest-bearing liabilities:
Fixed income payables		21,116		21,002
Accrued interest payable		17,696		10,336
Total other noninterest-bearing liabilities		38,812		31,338
Total liabilities		26,493,839		25,392,539
Carrying Reported Amount Fair Value Disclosure [Member] | Commercial Financial And Industrial Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		11,610,889		12,058,689
Carrying Reported Amount Fair Value Disclosure [Member] | Commercial Real Estate Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		2,142,423		2,101,671
Carrying Reported Amount Fair Value Disclosure [Member] | Consumer Real Estate Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		4,407,131		4,473,395
Carrying Reported Amount Fair Value Disclosure [Member] | Permanent Mortgage Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		393,342		406,836
Carrying Reported Amount Fair Value Disclosure [Member] | Credit Card And Other Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		334,321		346,861
Estimate Of Fair Value Fair Value Disclosure [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		18,687,323		19,134,856
Short-term financial assets:
Interest-bearing cash		2,106,597		1,060,034
Federal funds sold		31,495		50,838
Securities purchased under agreements to resell		835,222		613,682
Total short-term financial assets		2,973,314		1,724,554
Trading securities	[4]	1,167,310		897,071
Loans held-for-sale		105,456		111,248
Securities available-for-sale	[4]	3,939,278	[5]	3,943,499	[6]
Securities held-to-maturity		14,803		14,773
Derivative assets	[4]	98,120		121,654
Other assets:
Tax credit investments		94,884		98,400
Deferred compensation assets		34,109		32,840
Total other assets		128,993		131,240
Nonearning assets:
Cash and due from banks		369,290		373,274
Fixed income receivables		168,315		57,411
Accrued interest receivable		61,832		62,887
Total nonearning assets		599,437		493,572
Total assets		27,714,034		26,572,467
Deposits:
Defined maturity		1,391,170		1,361,104
Undefined maturity		22,094,023		21,317,230
Total deposits		23,485,193		22,678,334
Trading liabilities	[4]	848,190		561,848
Short-term financial liabilities:
Federal Funds Purchased		504,805		414,207
Securities sold under agreements to repurchase		406,354		453,053
Other short-term borrowings		79,454		83,177
Total short-term financial liabilities		990,613		950,437
Term borrowings:
Real estate investment trust-preferred		49,350		49,350
Term borrowings - new market tax credit investment		17,934		17,918
Borrowings secured by residential real estate		18,828		21,969
Other long term borrowings		967,792		965,066
Total term borrowings		1,053,904		1,054,303
Derivative liabilities	[4]	101,347		135,897
Other noninterest-bearing liabilities:
Fixed income payables		21,116		21,002
Accrued interest payable		17,696		10,336
Total other noninterest-bearing liabilities		38,812		31,338
Total liabilities		26,518,059		25,412,157
Loan commitments		2,612		2,924
Standby and other commitments		4,230		4,037
Estimate Of Fair Value Fair Value Disclosure [Member] | Commercial Financial And Industrial Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		11,520,970		11,918,374
Estimate Of Fair Value Fair Value Disclosure [Member] | Commercial Real Estate Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		2,112,591		2,078,306
Estimate Of Fair Value Fair Value Disclosure [Member] | Consumer Real Estate Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		4,325,035		4,385,669
Estimate Of Fair Value Fair Value Disclosure [Member] | Permanent Mortgage Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		393,859		404,930
Estimate Of Fair Value Fair Value Disclosure [Member] | Credit Card And Other Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		334,868		347,577
Estimate Of Fair Value Fair Value Disclosure [Member] | Fair Value Inputs Level1 [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		0		0
Short-term financial assets:
Interest-bearing cash		2,106,597		1,060,034
Federal funds sold		0		0
Securities purchased under agreements to resell		0		0
Total short-term financial assets		2,106,597		1,060,034
Trading securities	[4]	0		0
Loans held-for-sale		0		0
Securities available-for-sale	[4]	25,221	[5]	25,249	[6]
Securities held-to-maturity		0		0
Derivative assets	[4]	17,227		33,587
Other assets:
Tax credit investments		0		0
Deferred compensation assets		34,109		32,840
Total other assets		34,109		32,840
Nonearning assets:
Cash and due from banks		369,290		373,274
Fixed income receivables		0		0
Accrued interest receivable		0		0
Total nonearning assets		369,290		373,274
Total assets		2,552,444		1,524,984
Deposits:
Defined maturity		0		0
Undefined maturity		0		0
Total deposits		0		0
Trading liabilities	[4]	0		0
Short-term financial liabilities:
Federal Funds Purchased		0		0
Securities sold under agreements to repurchase		0		0
Other short-term borrowings		0		0
Total short-term financial liabilities		0		0
Term borrowings:
Real estate investment trust-preferred		0		0
Term borrowings - new market tax credit investment		0		0
Borrowings secured by residential real estate		0		0
Other long term borrowings		0		0
Total term borrowings		0		0
Derivative liabilities	[4]	18,365		33,274
Other noninterest-bearing liabilities:
Fixed income payables		0		0
Accrued interest payable		0		0
Total other noninterest-bearing liabilities		0		0
Total liabilities		18,365		33,274
Estimate Of Fair Value Fair Value Disclosure [Member] | Fair Value Inputs Level1 [Member] | Commercial Financial And Industrial Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		0		0
Estimate Of Fair Value Fair Value Disclosure [Member] | Fair Value Inputs Level1 [Member] | Commercial Real Estate Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		0		0
Estimate Of Fair Value Fair Value Disclosure [Member] | Fair Value Inputs Level1 [Member] | Consumer Real Estate Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		0		0
Estimate Of Fair Value Fair Value Disclosure [Member] | Fair Value Inputs Level1 [Member] | Permanent Mortgage Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		0		0
Estimate Of Fair Value Fair Value Disclosure [Member] | Fair Value Inputs Level1 [Member] | Credit Card And Other Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		0		0
Estimate Of Fair Value Fair Value Disclosure [Member] | Fair Value Inputs Level2 [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		0		0
Short-term financial assets:
Interest-bearing cash		0		0
Federal funds sold		31,495		50,838
Securities purchased under agreements to resell		835,222		613,682
Total short-term financial assets		866,717		664,520
Trading securities	[4]	1,164,975		894,498
Loans held-for-sale		4,700		6,631
Securities available-for-sale	[4]	3,752,333	[5]	3,756,745	[6]
Securities held-to-maturity		0		0
Derivative assets	[4]	80,893		88,067
Other assets:
Tax credit investments		0		0
Deferred compensation assets		0		0
Total other assets		0		0
Nonearning assets:
Cash and due from banks		0		0
Fixed income receivables		168,315		57,411
Accrued interest receivable		61,832		62,887
Total nonearning assets		230,147		120,298
Total assets		6,099,765		5,530,759
Deposits:
Defined maturity		1,391,170		1,361,104
Undefined maturity		22,094,023		21,317,230
Total deposits		23,485,193		22,678,334
Trading liabilities	[4]	848,190		561,848
Short-term financial liabilities:
Federal Funds Purchased		504,805		414,207
Securities sold under agreements to repurchase		406,354		453,053
Other short-term borrowings		79,454		83,177
Total short-term financial liabilities		990,613		950,437
Term borrowings:
Real estate investment trust-preferred		0		0
Term borrowings - new market tax credit investment		0		0
Borrowings secured by residential real estate		0		0
Other long term borrowings		967,792		965,066
Total term borrowings		967,792		965,066
Derivative liabilities	[4]	77,032		96,378
Other noninterest-bearing liabilities:
Fixed income payables		21,116		21,002
Accrued interest payable		17,696		10,336
Total other noninterest-bearing liabilities		38,812		31,338
Total liabilities		26,407,632		25,283,401
Estimate Of Fair Value Fair Value Disclosure [Member] | Fair Value Inputs Level2 [Member] | Commercial Financial And Industrial Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		0		0
Estimate Of Fair Value Fair Value Disclosure [Member] | Fair Value Inputs Level2 [Member] | Commercial Real Estate Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		0		0
Estimate Of Fair Value Fair Value Disclosure [Member] | Fair Value Inputs Level2 [Member] | Consumer Real Estate Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		0		0
Estimate Of Fair Value Fair Value Disclosure [Member] | Fair Value Inputs Level2 [Member] | Permanent Mortgage Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		0		0
Estimate Of Fair Value Fair Value Disclosure [Member] | Fair Value Inputs Level2 [Member] | Credit Card And Other Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		0		0
Estimate Of Fair Value Fair Value Disclosure [Member] | Fair Value Inputs Level3 [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		18,687,323		19,134,856
Short-term financial assets:
Interest-bearing cash		0		0
Federal funds sold		0		0
Securities purchased under agreements to resell		0		0
Total short-term financial assets		0		0
Trading securities	[4]	2,335		2,573
Loans held-for-sale		100,756	[4]	104,617
Securities available-for-sale	[4]	161,724	[5]	161,505	[6]
Securities held-to-maturity		14,803		14,773
Derivative assets	[4]	0		0
Other assets:
Tax credit investments		94,884		98,400
Deferred compensation assets		0		0
Total other assets		94,884		98,400
Nonearning assets:
Cash and due from banks		0		0
Fixed income receivables		0		0
Accrued interest receivable		0		0
Total nonearning assets		0		0
Total assets		19,061,825		19,516,724
Deposits:
Defined maturity		0		0
Undefined maturity		0		0
Total deposits		0		0
Trading liabilities	[4]	0		0
Short-term financial liabilities:
Federal Funds Purchased		0		0
Securities sold under agreements to repurchase		0		0
Other short-term borrowings		0		0
Total short-term financial liabilities		0		0
Term borrowings:
Real estate investment trust-preferred		49,350		49,350
Term borrowings - new market tax credit investment		17,934		17,918
Borrowings secured by residential real estate		18,828		21,969
Other long term borrowings		0		0
Total term borrowings		86,112		89,237
Derivative liabilities	[4]	5,950		6,245
Other noninterest-bearing liabilities:
Fixed income payables		0		0
Accrued interest payable		0		0
Total other noninterest-bearing liabilities		0		0
Total liabilities		92,062		95,482
Estimate Of Fair Value Fair Value Disclosure [Member] | Fair Value Inputs Level3 [Member] | Commercial Financial And Industrial Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		11,520,970		11,918,374
Estimate Of Fair Value Fair Value Disclosure [Member] | Fair Value Inputs Level3 [Member] | Commercial Real Estate Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		2,112,591		2,078,306
Estimate Of Fair Value Fair Value Disclosure [Member] | Fair Value Inputs Level3 [Member] | Consumer Real Estate Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		4,325,035		4,385,669
Estimate Of Fair Value Fair Value Disclosure [Member] | Fair Value Inputs Level3 [Member] | Permanent Mortgage Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		393,859		404,930
Estimate Of Fair Value Fair Value Disclosure [Member] | Fair Value Inputs Level3 [Member] | Credit Card And Other Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		334,868		347,577
Contractual Amount [Member]
Other noninterest-bearing liabilities:
Loan commitments		9,430,508		8,744,649
Standby and other commitments		$ 273,029		$ 277,549

[1] March 31, 2017 an d December 31, 2016 include $17.5 million and $19.3 million, respectively, of held-for-sale consumer mortgage loans secured by residential real estate in process of foreclosure.

[2] Includes $ 3 . 5 billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes.

[3] Includes $ 3.3 billion of securities pledged to secure public deposits, securities sold under agreements to repu rchase, and for other purposes .

[4] Classes are detailed in the recurring and nonrecurring measurement tables.

[5] Level 3 includes restricted investments in FHLB-Cincinnati stock of $ 87.9 million and FRB stock of $ 68.6 million .

[6] Level 3 includes restricted investments in FHLB-Cincinnati stock of $ 87.9 million and FRB stock of $ 68.6 million.