Variable Interest Entities (Tables)

3 Months Ended

Mar. 31, 2017

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
			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


	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)

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, $18.0 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 $.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.