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.