UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of report (Date of earliest event reported):
July 17, 2015
First Horizon National Corporation
(Exact Name of Registrant as Specified in
Charter)
TN |
001-15185 |
62-0803242 |
(State or other jurisdiction |
(Commission |
(IRS Employer |
of incorporation) |
File Number) |
Identification No.) |
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165 MADISON AVENUE
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38103 |
MEMPHIS, TENNESSEE |
(Zip Code) |
(Address of principal executive office) |
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Registrant’s telephone number, including
area code: (901) 523-4444
(Former name or former address, if changed
from last report)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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o |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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o |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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o |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
ITEM 2.02. Results of Operations
and Financial Condition.
ITEM 7.01. Regulation FD Disclosure.
Furnished as Exhibit 99.1 is a copy of
First Horizon National Corporation Financial Supplement and Investor Slide Presentation for the quarter ended June 30, 2015, which
was released today.
The foregoing information is furnished
pursuant to Item 2.02, “Results of Operations and Financial Condition,” and Item 7.01, “Regulation FD Disclosure.”
The exhibit speaks as of the date thereof and First Horizon National Corporation (“First Horizon”) does not assume any
obligation to update in the future the information therein.
ITEM 9.01.
Financial Statements and Exhibits.
(d) Exhibits
The following exhibit is furnished pursuant
to Items 2.02 and 7.01, is not to be considered “filed” under the Securities Exchange Act of 1934, as amended (“Exchange
Act”), and shall not be incorporated by reference into any of First Horizon’s previous or future filings under the
Securities Act of 1933, as amended, or the Exchange Act.
Exhibit # |
Description
|
99.1 |
First Horizon National Corporation Financial Supplement and Investor
Slide Presentation for the quarter ended June 30, 2015. |
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 hereunto duly authorized.
|
First Horizon National Corporation |
|
(Registrant) |
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|
Date: July 17, 2015 |
By: /s/ William C. Losch III |
|
William C. Losch III |
|
Executive Vice President and Chief Financial Officer |
EXHIBIT INDEX
The following exhibit is furnished pursuant
to Items 2.02 and 7.01, is not to be considered “filed” under the Exchange Act, and shall not be incorporated by reference
into any of First Horizon’s previous or future filings under the Securities Act of 1933, as amended, or the Exchange Act.
Exhibit # |
Description
|
99.1 |
First Horizon National Corporation Financial Supplement and Investor
Slide Presentation for the quarter ended June 30, 2015. |
Exhibit 99.1
SECOND QUARTER 2015
FINANCIAL SUPPLEMENT
If you need further information, please
contact:
Aarti Bowman, Investor Relations
901-523-4017
aagoorha@firsthorizon.com
FHN TABLE OF CONTENTS |
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First Horizon National
Corporation Segment Structure |
3 |
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Performance Highlights |
4 |
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Consolidated Results |
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Income Statement |
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Income Statement |
6 |
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Other Income and Other
Expense |
7 |
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Balance Sheet |
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Period End Balance
Sheet |
8 |
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Average Balance Sheet |
9 |
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Net Interest Income |
10 |
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Average Balance Sheet: Yields and
Rates |
11 |
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Capital Highlights |
12 |
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Business Segment
Detail |
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Segment Highlights |
13 |
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Regional Banking |
14 |
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Fixed Income and Corporate |
15 |
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Non-Strategic |
16 |
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Asset Quality |
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Asset Quality: Consolidated |
17 |
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Asset Quality: Regional
Banking and Corporate |
19 |
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Asset Quality: Non-Strategic |
20 |
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Portfolio Metrics |
21 |
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Non-GAAP to GAAP
Reconciliation |
22 |
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Glossary of Terms |
23 |
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Other Information
This financial supplement contains forward-looking statements involving significant risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward-looking information. Those factors include general economic and financial market conditions, including expectations of and actual timing and amount of interest rate movements including the slope of the yield curve, competition, customer and investor responses to these conditions, ability to execute business plans, geopolitical developments, recent and future legislative and regulatory developments, natural disasters, and items mentioned in this financial supplement and in First Horizon National Corporation’s (“FHN”) most recent press release, as well as critical accounting estimates and other factors described in FHN’s recent filings with the SEC. FHN disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements included herein or therein to reflect future events or developments.
Use of Non-GAAP Measures and Regulatory Measures
that are not GAAP
Certain measures are included in this financial supplement
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.
Presentation of regulatory measures, even those which
are not GAAP, provides a meaningful base for comparability to other financial institutions subject to the same regulations as FHN,
as demonstrated by their use by the various banking regulators in reviewing the 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 financial supplement include: 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; common equity tier 1 capital (for periods after fourth
quarter 2014), generally defined as common equity less goodwill, other intangibles, and certain other required regulatory deductions;
risk weighted assets (“RWA”), which is total assets adjusted for credit risk, used to determine regulatory capital
ratios; and pre-provision net revenue ("PPNR"), calculated by adding the provision/(provision credit) for loan losses
to income before income taxes. The regulatory common equity tier 1 capital used in 2015 and later periods is not the same as the
non-regulatory, non-GAAP tier 1 common capital commonly used prior to 2015; comparisons between the two are not meaningful.
The non-GAAP measures presented in this financial supplement
are return on average tangible common equity (“ROTCE”), tangible common equity ("TCE") to tangible assets
("TA"), tangible book value per common share, and tier 1 common to RWA (for periods prior to first quarter 2015).
Refer to the tabular reconciliation of non-GAAP to
GAAP measures and presentation of the most comparable GAAP items on page 22 of this financial supplement.
FIRST HORIZON NATIONAL CORPORATION SEGMENT STRUCTURE |
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FHN PERFORMANCE HIGHLIGHTS
Second
Quarter 2015 vs. First Quarter 2015
Consolidated
| • | Net
income available to common shareholders was $50.6 million, or $.22 per diluted share
in second quarter, compared to net loss of $76.7 million, or $.33 loss per diluted share
in first quarter |
| • | Net
interest income (“NII”) was $166.6 million in second quarter compared to
$156.9 million in first quarter; net interest margin (“NIM”) increased to
2.92 percent in second quarter from 2.74 percent in prior quarter |
| • | The
increase in NII was primarily driven by several factors mentioned in “Regional
Banking” below |
| • | The
increase in NIM was largely the result of a decrease in average excess cash held at the
Fed during the quarter |
| • | Noninterest
income (including securities gains) was $130.3 million in second quarter compared to
$129.7 million in prior quarter |
| • | Noninterest
expense was $218.4 million in second quarter compared to $376.2 million in first quarter
primarily due to a $162.5 million decline in litigation and regulatory loss accruals |
| • | Period-end
loans were $16.9 billion and $16.7 billion in second quarter and first quarter, respectively;
average loans grew 4 percent to $16.8 billion in second quarter |
| • | Period-end
core deposits increased to $18.3 billion in second quarter from $18.2 billion in prior
quarter; average core deposits increased 2 percent linked quarter to $18.1 billion in
second quarter |
Regional Banking
| • | Pre-tax
income was $70.6 million in second quarter compared to $73.9 million in first quarter;
pre-provision net revenue was $87.7 million and $78.8 million in second and
first quarters, respectively |
| • | Average
loans increased 6 percent, or $812.9 million to $14.3 billion in second quarter primarily
driven by higher balances of commercial loans including loans to mortgage companies and
real estate lending; period-end loans increased 2 percent to $14.5 billion |
| • | Average
core deposits increased 3 percent to $16.8 billion in second quarter from $16.3 billion
in first quarter; period-end core deposits were $16.8 billion in both second and first
quarters |
| • | Increase
in average core deposits was largely driven by the timing of a new product offering in correspondent banking |
| • | NII
was $165.9 million in second quarter compared to $154.4 million in first quarter; NIM
increased slightly to 4.69 percent in second quarter from 4.68 percent in first quarter |
| • | The
increase in NII was largely driven by higher average balances of loans to mortgage companies,
higher commercial loan fees relative to the prior quarter, and more days in second quarter
compared to first quarter |
| • | Provision
expense was $17.1 million compared to $4.9 million in the prior quarter |
| • | Overall,
the portfolios within the regional bank reflected continued strong performance with low
levels of net charge-offs and delinquencies |
| • | The increase in quarterly
provision is due to a number of factors including loan growth, a continued
extension
of the loss emergence period (“LEP”) for commercial loans in the
current
cycle, increased reserves associated with a single larger credit resulting in fraud loss, and was somewhat offset by the
continued
favorable impact
of historically low net charge-off levels |
| |
• |
The
LEP is the average amount of time between a borrower experiencing a loss-causing event and a bank incurring a charge-off |
| • | Noninterest
income increased to $66.0 million in second quarter from $60.2 million in first quarter |
| • | The
increase was driven by higher non-sufficient funds (“NSF”), brokerage, trust,
and bankcard fee income |
| • | Noninterest
expense was $144.2 million in second quarter compared to $135.8 million in prior quarter |
| • | Expense
increase was driven by a number of items including an increase in the provision for unfunded commitments,
larger negative fair value marks associated with foreclosed real estate, and higher personnel expenses relative to the prior quarter |
Fixed Income (formerly Capital Markets)
| • | Pre-tax
income was $9.1 million in second quarter compared to $11.2 million in first quarter |
| • | Fixed
income product revenue was $46.7 million in second quarter down from $53.5 million in
first quarter |
| • | Fixed
income product average daily revenue (“ADR”) was $729 thousand and $877 thousand
in second quarter and first quarter, respectively |
| • | Noninterest
expense was $51.2 million in second quarter compared to $54.7 million in the prior quarter |
| • | Second
quarter decline was driven by lower variable compensation costs and a decrease in FICA |
Corporate
| • | Pre-tax
loss was $27.2 million in second quarter compared to a loss of $24.9 million in prior
quarter |
| • | NII
was negative $17.4 million in second quarter compared to negative $16.1 million in first
quarter |
| • | Estimated
effective duration of the securities portfolio was 3.5 years in second quarter compared
to 2.5 years in first quarter |
| • | Estimated
modified duration of the securities portfolio was 4.2 years in second quarter compared
to 3.6 years in prior quarter |
• | Noninterest
income was $3.9 million in second quarter, down from $5.4 million in first quarter |
| • | Decrease
primarily relates to lower deferred compensation income driven by market conditions;
changes in deferred compensation income are mirrored by changes in deferred compensation
expense |
| • | Noninterest
expense decreased to $13.8 million in second quarter from $14.2 million in first quarter |
FHN PERFORMANCE HIGHLIGHTS (continued)
Second Quarter 2015 vs. First Quarter 2015 (continued)
Non-Strategic
| • | Pre-tax
income was $24.1 million in second quarter compared to pre-tax loss of $154.9 million
in first quarter |
| • | Noninterest
expense decreased to $9.2 million in second quarter from $171.6 million in first quarter |
| • | The
decline was driven by $162.5 million of net loss accruals recognized in first quarter
related to the settlement of potential claims related to FHN’s underwriting and
origination of FHA-insured mortgage loans |
| • | Provision
expense declined $15.2 million to a provision credit of $15.1 million |
| • | The
lower provision was the result of decreased reserves because of sustained levels of low
net charge offs, a continuation of positive delinquency trends, and continued stabilization
of property values |
| • | Noninterest
income was $4.4 million in second quarter, up from $2.5 million in first quarter |
| • | Second
quarter includes a $2.7 million pre-tax gain on the sale of property |
| • | NII
was $13.8 million in second quarter compared to $14.2 million in first quarter |
Asset Quality
| • | Allowance
for loan losses declined to $221.4 million in second quarter from $228.3 million in first
quarter; the allowance to loans ratio was 131 basis points in second quarter compared
to 136 basis points in first quarter |
| • | The
decline in the allowance was primarily driven by a $23.8 million reduction of consumer
real estate reserves which was partially offset by an increase in the allowance associated
with the regional bank’s commercial portfolio |
| • | Net
charge-offs (“NCOs”) were $9.0 million in second quarter compared to $9.1 million
in first quarter; annualized net charge-offs decreased to 21 basis points of average
loans in second quarter from 23 basis points in prior quarter |
| • | Within
the Regional Bank, net charge-offs were $10.3 million in the second quarter compared
to $5.7 million in the first quarter |
| • | The
increase was largely driven by one C&I credit and also higher net charge-offs within the
credit card portfolio as FHN recognized charge-offs on a sub segment
of the portfolio which had previously been reserved for |
| • | Nonperforming
loans (“NPLs”) in the portfolio were $203.1 million in the second quarter compared
to $200.2 million in the first quarter |
| • | Commercial
NPLs increased $8.2 million from the first quarter due to a $7.1 million increase in
the regional bank |
| • | Consumer
NPLs decreased $5.3 million from the first quarter due to a $3.3 million decline in non-strategic
consumer real estate |
| • | Nonperforming
assets (“NPAs”), including loans held-for-sale, increased to $238.5 million
in second quarter from $236.8 million in the prior quarter |
| • | The
increase in NPAs largely corresponded to the increase in NPLs |
| • | Total
30+ delinquencies decreased to $71.4 million in second quarter compared to $78.0 million
in prior quarter |
| • | Consumer
delinquencies declined by $5.8 million and was primarily driven by improvement in permanent
mortgage and consumer real estate |
| • | Troubled
debt restructurings (“TDRs”) decreased to $391.4 million in second quarter
from $395.8 million in prior quarter |
Taxes
| • | The
effective tax rates (“ETR”) for second quarter and first quarter were 28.21
percent and 23.52 percent, respectively. Since pre-tax income is the most important component in determining the ETR, the comparison of the tax rate
from period to period, by itself, will not provide meaningful information unless pre-tax income is fairly consistent. The rates reflect the favorable effect from
permanent benefits. |
| • | Permanent
benefits primarily consist of: proceeds from life insurance, tax-exempt income, utilization
of capital loss carryover, and tax credit investments |
| • | The
expected annual ETR declined during second quarter resulting in $3.4 million of tax expense
to reduce the first quarter tax benefit (associated with FHN’s pre-tax loss)
to the lower rate. This contributed to a higher ETR in second quarter compared to the prior quarter |
| • | Second
quarter tax expense includes $2.8 million of discrete tax expenses that should not affect
the remainder of 2015 |
Capital and Liquidity
| • | Paid
$0.06 per common share quarterly dividend ($14.0 million) on July 1, 2015 |
| • | Paid
aggregate preferred quarterly dividend of $1.6 million on July 10, 2015 |
| • | No
shares were repurchased in second quarter under the $100 million share repurchase program
announced in January 2014 due to restrictions related to the pending acquisition of TrustAtlantic
Financial Corporation |
| • | Cumulative
shares repurchased since the program’s inception are $54.3 million with a volume
weighted average price of $12.79 per share (before $.02 per share broker commission) |
| • | Capital
ratios (regulatory capital ratios based on period-end balances under the Basel
III risk-based capital rules as phased-in) (current quarter is an estimate) |
| • | Tangible
common equity to tangible assets of 7.80 percent in second quarter compared to 7.57 percent
in prior quarter |
| • | Common
Equity Tier 1 of 10.41 percent in second quarter compared to 10.31 percent in prior quarter |
| • | Tier
1 of 11.98 percent in second quarter compared to 11.85 percent in prior quarter |
| • | Total
Capital of 13.95 percent in second quarter compared to 14.08 percent in prior quarter |
| • | Leverage
of 9.86 percent in second quarter compared to 9.59 percent in prior quarter |
FHN CONSOLIDATED INCOME STATEMENT
Quarterly, Unaudited
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2Q15 Changes vs. |
(Dollars in thousands, except per share data) |
2Q15 |
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1Q15 |
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4Q14 |
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3Q14 |
|
2Q14 |
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1Q15 |
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2Q14 |
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Interest income |
$187,030 |
|
$178,068 |
|
$179,448 |
|
$178,858 |
|
$177,359 |
|
5 |
% |
|
5 |
% |
Less: interest expense |
20,390 |
|
21,202 |
|
20,398 |
|
19,317 |
|
20,591 |
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(4 |
)% |
|
(1 |
)% |
Net interest income |
166,640 |
|
156,866 |
|
159,050 |
|
159,541 |
|
156,768 |
|
6 |
% |
|
6 |
% |
Provision for loan losses |
2,000 |
|
5,000 |
|
6,000 |
|
6,000 |
|
5,000 |
|
(60 |
)% |
|
(60 |
)% |
Net interest income after provision for loan losses |
164,640 |
|
151,866 |
|
153,050 |
|
153,541 |
|
151,768 |
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8 |
% |
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8 |
% |
Noninterest income: |
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Fixed income |
56,241 |
|
61,619 |
|
48,486 |
|
47,589 |
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47,680 |
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(9 |
)% |
|
18 |
% |
Deposit transactions and cash management |
28,430 |
|
26,551 |
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29,038 |
|
28,546 |
|
27,911 |
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7 |
% |
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2 |
% |
Brokerage, management fees and commissions |
12,456 |
|
11,399 |
|
11,647 |
|
12,333 |
|
12,843 |
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9 |
% |
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(3 |
)% |
Mortgage banking (a) |
376 |
|
1,584 |
|
1,808 |
|
41,559 |
|
8,861 |
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(76 |
)% |
|
(96 |
)% |
Trust services and investment management |
7,416 |
|
6,698 |
|
6,945 |
|
6,779 |
|
7,309 |
|
11 |
% |
|
1 |
% |
Bankcard income (b) |
5,884 |
|
5,186 |
|
5,737 |
|
5,521 |
|
7,919 |
|
13 |
% |
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(26 |
)% |
Bank-owned life insurance |
3,391 |
|
3,462 |
|
3,503 |
|
3,547 |
|
3,312 |
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(2 |
)% |
|
2 |
% |
Other service charges |
3,043 |
|
2,848 |
|
2,830 |
|
3,064 |
|
3,143 |
|
7 |
% |
|
(3 |
)% |
Insurance commissions |
654 |
|
596 |
|
616 |
|
593 |
|
611 |
|
10 |
% |
|
7 |
% |
Securities gains/(losses), net |
8 |
|
276 |
|
- |
|
(862) |
|
(1,923) |
|
(97 |
)% |
|
NM |
|
Other (c) |
12,402 |
|
9,470 |
|
8,988 |
|
9,146 |
|
9,235 |
|
31 |
% |
|
34 |
% |
Total noninterest income |
130,301 |
|
129,689 |
|
119,598 |
|
157,815 |
|
126,901 |
|
* |
|
|
3 |
% |
Adjusted gross income after provision for loan losses |
294,941 |
|
281,555 |
|
272,648 |
|
311,356 |
|
278,669 |
|
5 |
% |
|
6 |
% |
Noninterest expense: |
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Employee compensation, incentives, and benefits |
127,970 |
|
131,444 |
|
118,529 |
|
120,742 |
|
119,659 |
|
(3 |
)% |
|
7 |
% |
Repurchase and foreclosure provision (d) |
- |
|
- |
|
- |
|
(4,300) |
|
- |
|
NM |
|
|
NM |
|
Legal fees |
4,509 |
|
3,551 |
|
5,633 |
|
4,276 |
|
1,533 |
|
27 |
% |
|
NM |
|
Professional fees |
5,218 |
|
3,706 |
|
6,919 |
|
6,187 |
|
4,618 |
|
41 |
% |
|
13 |
% |
Occupancy |
11,764 |
|
12,218 |
|
12,077 |
|
12,405 |
|
11,944 |
|
(4 |
)% |
|
(2 |
)% |
Computer software |
11,340 |
|
10,942 |
|
10,574 |
|
10,614 |
|
11,087 |
|
4 |
% |
|
2 |
% |
Contract employment and outsourcing |
3,337 |
|
4,584 |
|
4,578 |
|
5,199 |
|
5,318 |
|
(27 |
)% |
|
(37 |
)% |
Operations services |
10,033 |
|
9,337 |
|
8,417 |
|
9,044 |
|
8,804 |
|
7 |
% |
|
14 |
% |
Equipment rentals, depreciation, and maintenance |
7,983 |
|
7,220 |
|
7,523 |
|
7,150 |
|
7,442 |
|
11 |
% |
|
7 |
% |
FDIC premium expense (e) |
4,952 |
|
3,448 |
|
2,881 |
|
3,456 |
|
1,136 |
|
44 |
% |
|
NM |
|
Advertising and public relations |
4,349 |
|
4,733 |
|
4,077 |
|
4,386 |
|
4,312 |
|
(8 |
)% |
|
1 |
% |
Communications and courier |
3,801 |
|
3,876 |
|
4,274 |
|
3,628 |
|
3,948 |
|
(2 |
)% |
|
(4 |
)% |
Foreclosed real estate |
1,329 |
|
(131) |
|
492 |
|
788 |
|
439 |
|
NM |
|
|
NM |
|
Amortization of intangible assets |
1,298 |
|
1,298 |
|
1,225 |
|
982 |
|
981 |
|
* |
|
|
32 |
% |
Other (c) |
20,511 |
|
179,995 |
|
20,110 |
|
59,459 |
|
(18,059) |
|
(89 |
)% |
|
NM |
|
Total noninterest expense |
218,394 |
|
376,221 |
|
207,309 |
|
244,016 |
|
163,162 |
|
(42 |
)% |
|
34 |
% |
Income/(loss) before income taxes |
76,547 |
|
(94,666) |
|
65,339 |
|
67,340 |
|
115,507 |
|
NM |
|
|
(34 |
)% |
Provision/(benefit) for income taxes |
21,590 |
|
(22,261) |
|
13,699 |
|
16,842 |
|
33,578 |
|
NM |
|
|
(36 |
)% |
Net income/(loss) |
54,957 |
|
(72,405) |
|
51,640 |
|
50,498 |
|
81,929 |
|
NM |
|
|
(33 |
)% |
Net income attributable to noncontrolling interest |
2,851 |
|
2,758 |
|
2,980 |
|
2,875 |
|
2,859 |
|
3 |
% |
|
* |
|
Net income/(loss) attributable to controlling interest |
52,106 |
|
(75,163) |
|
48,660 |
|
47,623 |
|
79,070 |
|
NM |
|
|
(34 |
)% |
Preferred stock dividends |
1,550 |
|
1,550 |
|
1,550 |
|
1,550 |
|
1,550 |
|
* |
|
|
* |
|
Net income/(loss) available to common shareholders |
$50,556 |
|
$(76,713) |
|
$47,110 |
|
$46,073 |
|
$77,520 |
|
NM |
|
|
(35 |
)% |
Common Stock Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS |
$0.22 |
|
$(0.33) |
|
$0.20 |
|
$0.20 |
|
$0.33 |
|
NM |
|
|
(33 |
)% |
Basic Shares (thousands) (f) |
232,800 |
|
232,816 |
|
233,693 |
|
235,329 |
|
235,797 |
|
* |
|
|
(1 |
)% |
Diluted EPS |
$0.22 |
|
$(0.33) |
|
$0.20 |
|
$0.19 |
|
$0.33 |
|
NM |
|
|
(33 |
)% |
Diluted shares (thousands) |
234,669 |
|
232,816 |
|
235,448 |
|
236,862 |
|
237,250 |
|
1 |
% |
|
(1 |
)% |
Key Ratios & Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (annualized) (g) |
0.87 |
% |
(1.15) |
% |
0.83 |
% |
0.84 |
% |
1.39 |
% |
|
|
|
|
|
Return on average common equity (annualized) (g) |
9.56 |
% |
(14.04) |
% |
8.27 |
% |
8.16 |
% |
14.35 |
% |
|
|
|
|
|
Return on average tangible common equity (annualized) (g) (h) |
10.41 |
% |
(15.24) |
% |
8.92 |
% |
8.79 |
% |
15.51 |
% |
|
|
|
|
|
Fee income to total revenue (g) |
43.88 |
% |
45.21 |
% |
42.92 |
% |
49.86 |
% |
45.11 |
% |
|
|
|
|
|
Efficiency ratio (g) |
73.55 |
% |
NM |
|
74.40 |
% |
76.68 |
% |
57.13 |
% |
|
|
|
|
|
Full time equivalent employees |
4,212 |
|
4,226 |
|
4,250 |
|
4,193 |
|
4,216 |
|
|
|
|
|
|
Certain previously reported amounts have been reclassified to
agree with current presentation.
NM - Not meaningful
* Amount is less than one percent. |
(a) |
3Q14 includes a $39.7 million gain on the sales of mortgage loans HFS; 2Q14 includes an $8.2 million positive fair value adjustment to the held-for-sale portfolio. |
(b) |
2Q14 includes $2.8 million of Visa volume incentives. |
(c) |
Refer to the Other Income and Other Expense table on page 7 for additional information. |
(d) |
3Q14 expense reversal associated with the settlement of certain repurchase claims. |
(e) |
2Q14 includes the effect of $3.3 million of FDIC premium refunds. |
(f) |
In periods prior to 2Q15, decreases primarily relate to shares purchased under share repurchase programs. |
(g) |
See Glossary of Terms for definitions of Key Ratios. |
(h) |
Refer to the Non-GAAP to GAAP reconciliation on page 22 of this financial supplement. |
FHN OTHER INCOME AND OTHER EXPENSE | |
| | |
| | |
| | |
| | |
| |
Quarterly, Unaudited | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
| |
| | |
| | |
| | |
| | |
| | |
| | |
| |
| |
| | |
| | |
| | |
| | |
| | |
2Q15 Changes vs. |
(Thousands) | |
2Q15 | | |
1Q15 | | |
4Q14 | | |
3Q14 | | |
2Q14 | | |
1Q15 | | |
2Q14 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Other Income | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
ATM and interchange fees | |
$ | 3,025 | | |
$ | 2,761 | | |
$ | 2,961 | | |
$ | 2,739 | | |
$ | 2,746 | | |
| 10 | % | |
| 10 | % |
Electronic banking fees | |
| 1,459 | | |
| 1,428 | | |
| 1,561 | | |
| 1,560 | | |
| 1,535 | | |
| 2 | % | |
| (5 | )% |
Letter of credit fees | |
| 1,532 | | |
| 1,123 | | |
| 1,111 | | |
| 917 | | |
| 1,173 | | |
| 36 | % | |
| 31 | % |
Deferred compensation (a) | |
| (35) | | |
| 1,033 | | |
| 242 | | |
| (41) | | |
| 1,184 | | |
| NM | | |
| NM | |
Gain /(loss) on extinguishment of debt | |
| – | | |
| – | | |
| 184 | | |
| – | | |
| – | | |
| NM | | |
| NM | |
Other (b) | |
| 6,421 | | |
| 3,125 | | |
| 2,929 | | |
| 3,971 | | |
| 2,597 | | |
| NM | | |
| NM | |
Total | |
$ | 12,402 | | |
$ | 9,470 | | |
$ | 8,988 | | |
$ | 9,146 | | |
$ | 9,235 | | |
| 31 | % | |
| 34 | % |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Other Expense | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Litigation and regulatory matters (c) | |
$ | – | | |
$ | 162,500 | | |
$ | – | | |
$ | 35,390 | | |
$ | (38,200) | | |
| NM | | |
| NM | |
Other insurance and taxes | |
| 3,455 | | |
| 3,329 | | |
| 2,722 | | |
| 3,909 | | |
| 3,209 | | |
| 4 | % | |
| 8 | % |
Tax credit investments | |
| 549 | | |
| 395 | | |
| 589 | | |
| 311 | | |
| 862 | | |
| 39 | % | |
| (36 | )% |
Travel and entertainment | |
| 2,632 | | |
| 1,614 | | |
| 2,462 | | |
| 2,164 | | |
| 2,645 | | |
| 63 | % | |
| * | |
Employee training and dues | |
| 1,449 | | |
| 1,132 | | |
| 1,258 | | |
| 1,194 | | |
| 1,200 | | |
| 28 | % | |
| 21 | % |
Customer relations | |
| 1,505 | | |
| 1,314 | | |
| 1,397 | | |
| 1,406 | | |
| 1,680 | | |
| 15 | % | |
| (10 | )% |
Miscellaneous loan costs | |
| 734 | | |
| 361 | | |
| 540 | | |
| 597 | | |
| 839 | | |
| NM | | |
| (13 | )% |
Supplies | |
| 880 | | |
| 927 | | |
| 1,046 | | |
| 779 | | |
| 804 | | |
| (5 | )% | |
| 9 | % |
Other (d) | |
| 9,307 | | |
| 8,423 | | |
| 10,096 | | |
| 13,709 | | |
| 8,902 | | |
| 10 | % | |
| 5 | % |
Total | |
$ | 20,511 | | |
$ | 179,995 | | |
$ | 20,110 | | |
$ | 59,459 | | |
$ | (18,059) | | |
| (89 | )% | |
| NM | |
NM - Not meaningful
* |
Amount is less than one percent |
(a) |
Amounts driven by market conditions and are mirrored by changes in deferred compensation expense which is included in
employee compensation expense. |
(b) |
2Q15 includes a $2.7 million pre-tax gain on sale of property. |
(c) |
1Q15 loss accruals relate to the settlement of potential claims related to FHN’s underwriting and origination of FHA-insured
mortgage loans; 3Q14 includes $50.0 million of loss accruals related to legal matters, partially offset by $15.0 million of expense
reversals associated with agreements with insurance companies for the recovery of expenses FHN incurred related to litigation
losses in previous periods; 2Q14 includes $38.6 million expense recovery related to the Sentinel litigation matter which was settled
in 2011. |
(d) |
3Q14 includes $3.2 million of negative valuation adjustments associated with derivatives related to prior sales of Visa Class
B shares. |
FHN CONSOLIDATED PERIOD-END BALANCE SHEET
Quarterly, Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q15 Changes
vs. |
(Thousands) |
2Q15 |
|
1Q15 |
|
4Q14 |
|
3Q14 |
|
2Q14 |
|
1Q15 |
2Q14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
$3,653,166 |
|
$3,676,630 |
|
$3,560,905 |
|
$3,538,957 |
|
$3,580,821 |
|
(1) |
% |
2 |
% |
|
Loans held-for-sale (a) |
127,196 |
|
133,958 |
|
141,285 |
|
151,915 |
|
358,945 |
|
(5) |
% |
(65) |
% |
|
Loans, net of unearned income |
16,936,772 |
|
16,732,123 |
|
16,230,166 |
|
15,812,017 |
|
15,795,709 |
|
1 |
% |
7 |
% |
|
Federal funds sold |
77,039 |
|
43,052 |
|
63,080 |
|
55,242 |
|
51,537 |
|
79 |
% |
49 |
% |
|
Securities purchased under agreements to resell |
816,991 |
|
831,541 |
|
659,154 |
|
561,802 |
|
624,477 |
|
(2) |
% |
31 |
% |
|
Interest-bearing cash (b) |
344,944 |
|
438,633 |
|
1,621,967 |
|
275,485 |
|
255,920 |
|
(21) |
% |
35 |
% |
|
Trading securities |
1,133,490 |
|
1,532,463 |
|
1,194,391 |
|
1,338,022 |
|
1,150,280 |
|
(26) |
% |
(1) |
% |
|
Total earning assets |
23,089,598 |
|
23,388,400 |
|
23,470,948 |
|
21,733,440 |
|
21,817,689 |
|
(1) |
% |
6 |
% |
|
Cash and due from banks |
274,256 |
|
282,800 |
|
349,171 |
|
292,687 |
|
417,108 |
|
(3) |
% |
(34) |
% |
|
Fixed income receivables (c) |
91,069 |
|
190,662 |
|
42,488 |
|
197,507 |
|
174,224 |
|
(52) |
% |
(48) |
% |
|
Goodwill (d) |
145,932 |
|
145,932 |
|
145,932 |
|
141,943 |
|
141,943 |
|
* |
|
3 |
% |
|
Other intangible assets, net (d) |
26,922 |
|
28,220 |
|
29,518 |
|
19,044 |
|
20,025 |
|
(5) |
% |
34 |
% |
|
Premises and equipment, net (d) (e) |
269,507 |
|
301,069 |
|
302,996 |
|
295,833 |
|
300,533 |
|
(10) |
% |
(10) |
% |
|
Real estate acquired by foreclosure |
40,268 |
|
39,776 |
|
39,922 |
|
47,996 |
|
57,552 |
|
1 |
% |
(30) |
% |
|
Allowance for loan losses |
(221,351) |
|
(228,328) |
|
(232,448) |
|
(238,641) |
|
(243,628) |
|
(3) |
% |
(9) |
% |
|
Derivative assets |
115,230 |
|
148,153 |
|
134,088 |
|
137,742 |
|
162,067 |
|
(22) |
% |
(29) |
% |
|
Other assets |
1,408,336 |
|
1,419,204 |
|
1,385,572 |
|
1,355,046 |
|
1,370,832 |
|
(1) |
% |
3 |
% |
|
Total assets |
$25,239,767 |
|
$25,715,888 |
|
$25,668,187 |
|
$23,982,597 |
|
$24,218,345 |
|
(2) |
% |
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings |
$7,462,642 |
|
$7,428,000 |
|
$7,455,354 |
|
$6,371,156 |
|
$6,317,197 |
|
* |
|
18 |
% |
|
Other interest-bearing deposits |
4,675,742 |
|
4,939,240 |
|
4,140,991 |
|
3,955,152 |
|
4,014,071 |
|
(5) |
% |
16 |
% |
|
Time deposits |
769,132 |
|
792,914 |
|
831,666 |
|
767,699 |
|
808,822 |
|
(3) |
% |
(5) |
% |
|
Total interest-bearing core deposits |
12,907,516 |
|
13,160,154 |
|
12,428,011 |
|
11,094,007 |
|
11,140,090 |
|
(2) |
% |
16 |
% |
|
Noninterest-bearing deposits |
5,366,936 |
|
5,060,897 |
|
5,195,656 |
|
4,603,826 |
|
4,513,800 |
|
6 |
% |
19 |
% |
|
Total core deposits (f) |
18,274,452 |
|
18,221,051 |
|
17,623,667 |
|
15,697,833 |
|
15,653,890 |
|
* |
|
17 |
% |
|
Certificates of deposit $100,000 and more |
400,021 |
|
417,503 |
|
445,272 |
|
446,938 |
|
503,597 |
|
(4) |
% |
(21) |
% |
|
Total deposits |
18,674,473 |
|
18,638,554 |
|
18,068,939 |
|
16,144,771 |
|
16,157,487 |
|
* |
|
16 |
% |
|
Federal funds purchased |
556,862 |
|
703,352 |
|
1,037,052 |
|
928,159 |
|
947,946 |
|
(21) |
% |
(41) |
% |
|
Securities sold under agreements to repurchase |
311,760 |
|
309,297 |
|
562,214 |
|
479,384 |
|
475,530 |
|
1 |
% |
(34) |
% |
|
Trading liabilities |
732,564 |
|
813,141 |
|
594,314 |
|
532,234 |
|
706,119 |
|
(10) |
% |
4 |
% |
|
Other short-term borrowings (g) |
150,350 |
|
158,745 |
|
157,218 |
|
790,080 |
|
1,073,250 |
|
(5) |
% |
(86) |
% |
|
Term borrowings (h) |
1,557,647 |
|
1,573,215 |
|
1,880,105 |
|
1,491,138 |
|
1,501,209 |
|
(1) |
% |
4 |
% |
|
Fixed income payables (c) |
54,301 |
|
91,176 |
|
18,157 |
|
329,960 |
|
95,299 |
|
(40) |
% |
(43) |
% |
|
Derivative liabilities |
109,815 |
|
133,273 |
|
119,239 |
|
123,442 |
|
138,336 |
|
(18) |
% |
(21) |
% |
|
Other liabilities |
574,090 |
|
795,878 |
|
649,359 |
|
551,615 |
|
507,894 |
|
(28) |
% |
13 |
% |
|
Total liabilities |
22,721,862 |
|
23,216,631 |
|
23,086,597 |
|
21,370,783 |
|
21,603,070 |
|
(2) |
% |
5 |
% |
|
Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock (i) |
146,263 |
|
145,937 |
|
146,387 |
|
147,030 |
|
148,217 |
|
* |
|
(1) |
% |
|
Capital surplus (i) |
1,371,712 |
|
1,370,711 |
|
1,380,809 |
|
1,390,081 |
|
1,416,012 |
|
* |
|
(3) |
% |
|
Undivided profits |
797,123 |
|
760,713 |
|
851,585 |
|
816,483 |
|
782,102 |
|
5 |
% |
2 |
% |
|
Accumulated other comprehensive loss, net |
(188,248) |
|
(169,159) |
|
(188,246) |
|
(132,835) |
|
(122,111) |
|
11 |
% |
54 |
% |
|
Preferred stock |
95,624 |
|
95,624 |
|
95,624 |
|
95,624 |
|
95,624 |
|
* |
|
* |
|
|
Noncontrolling interest (j) |
295,431 |
|
295,431 |
|
295,431 |
|
295,431 |
|
295,431 |
|
* |
|
* |
|
|
Total equity |
2,517,905 |
|
2,499,257 |
|
2,581,590 |
|
2,611,814 |
|
2,615,275 |
|
1 |
% |
(4) |
% |
|
Total liabilities and equity |
$25,239,767 |
|
$25,715,888 |
|
$25,668,187 |
|
$23,982,597 |
|
$24,218,345 |
|
(2) |
% |
4 |
% |
|
* Amount is less than one percent. |
(a) |
3Q14 decrease related to the sale of mortgage loans HFS. |
(b) |
Includes excess balances held at Fed. 4Q14 increase driven by inflow of customer deposits and proceeds from the issuance of senior notes. |
(c) |
Period-end balances fluctuate based on the level of pending unsettled trades. |
(d) |
4Q14 increase related to the acquisition of bank branches. |
(e) |
2Q15 decrease related to sale of property. |
(f) |
2Q15 average core deposits were $18.1 billion. |
(g) |
3Q14 and 2Q14 include increased FHLB borrowings as a result of loan growth and deposit fluctuations. |
(h) |
In 1Q15 $304 million of FTBNA subordinated notes matured. In 4Q14 FTBNA issued $400 million of senior bank notes. |
(i) |
In periods prior to 2Q15, decreases primarily relate to shares purchased under share repurchase programs. |
(j) |
Consists of preferred stock of subsidiaries. |
FHN CONSOLIDATED AVERAGE BALANCE SHEET
Quarterly, Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q15 Changes vs. |
(Thousands) |
2Q15 |
|
1Q15 |
|
4Q14 |
|
3Q14 |
|
2Q14 |
|
1Q15 |
|
2Q14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial,
and industrial (C&I) |
$9,675,107 |
|
$8,965,657 |
|
$8,584,065 |
|
$8,395,553 |
|
$7,994,788 |
|
8 |
% |
|
21 |
% |
|
Commercial real estate |
1,371,207 |
|
1,290,246 |
|
1,287,816 |
|
1,260,715 |
|
1,203,631 |
|
6 |
% |
|
14 |
% |
|
Consumer real estate |
4,893,285 |
|
4,988,532 |
|
5,087,104 |
|
5,173,088 |
|
5,230,107 |
|
(2) |
% |
|
(6) |
% |
|
Permanent mortgage |
500,093 |
|
526,616 |
|
552,065 |
|
581,876 |
|
607,296 |
|
(5) |
% |
|
(18) |
% |
|
Credit card
and other |
350,247 |
|
351,503 |
|
357,321 |
|
352,133 |
|
345,748 |
|
* |
|
|
1 |
% |
|
Total loans,
net of unearned income (a) |
16,789,939 |
|
16,122,554 |
|
15,868,371 |
|
15,763,365 |
|
15,381,570 |
|
4 |
% |
|
9 |
% |
|
Loans held-for-sale (b) |
129,519 |
|
138,373 |
|
144,061 |
|
318,743 |
|
355,822 |
|
(6) |
% |
|
(64) |
% |
|
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. treasuries |
100 |
|
100 |
|
100 |
|
26,764 |
|
39,995 |
|
* |
|
|
NM |
|
|
U.S. government agencies |
3,505,033 |
|
3,391,297 |
|
3,363,053 |
|
3,345,739 |
|
3,330,598 |
|
3 |
% |
|
5 |
% |
|
States and municipalities |
14,074 |
|
14,410 |
|
14,493 |
|
17,458 |
|
19,430 |
|
(2) |
% |
|
(28) |
% |
|
Other |
181,749 |
|
181,858 |
|
181,806 |
|
184,934 |
|
189,449 |
|
* |
|
|
(4) |
% |
|
Total investment
securities |
3,700,956 |
|
3,587,665 |
|
3,559,452 |
|
3,574,895 |
|
3,579,472 |
|
3 |
% |
|
3 |
% |
|
Trading securities |
1,363,165 |
|
1,371,514 |
|
1,182,762 |
|
1,060,123 |
|
1,118,425 |
|
(1) |
% |
|
22 |
% |
|
Other earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold |
31,765 |
|
23,710 |
|
26,543 |
|
37,274 |
|
29,490 |
|
34 |
% |
|
8 |
% |
|
Securities purchased under agreements to
resell |
760,338 |
|
777,989 |
|
672,764 |
|
644,022 |
|
664,194 |
|
(2) |
% |
|
14 |
% |
|
Interest-bearing
cash (c) |
465,596 |
|
1,451,826 |
|
1,011,983 |
|
288,192 |
|
363,674 |
|
(68) |
% |
|
28 |
% |
|
Total other
earning assets |
1,257,699 |
|
2,253,525 |
|
1,711,290 |
|
969,488 |
|
1,057,358 |
|
(44) |
% |
|
19 |
% |
|
Total earning assets |
23,241,278 |
|
23,473,631 |
|
22,465,936 |
|
21,686,614 |
|
21,492,647 |
|
(1) |
% |
|
8 |
% |
|
Allowance for loan losses |
(227,765) |
|
(232,655) |
|
(238,850) |
|
(240,433) |
|
(246,779) |
|
(2) |
% |
|
(8) |
% |
|
Cash and due from
banks |
315,730 |
|
342,512 |
|
341,338 |
|
321,427 |
|
308,890 |
|
(8) |
% |
|
2 |
% |
|
Fixed income receivables |
51,913 |
|
48,937 |
|
63,384 |
|
55,937 |
|
46,864 |
|
6 |
% |
|
11 |
% |
|
Premises and equipment, net |
292,874 |
|
301,989 |
|
301,512 |
|
297,636 |
|
299,899 |
|
(3) |
% |
|
(2) |
% |
|
Derivative assets |
138,935 |
|
139,086 |
|
141,146 |
|
154,988 |
|
165,684 |
|
* |
|
|
(16) |
% |
|
Other
assets |
1,601,083 |
|
1,571,104 |
|
1,538,791 |
|
1,526,165 |
|
1,580,093 |
|
2 |
% |
|
1 |
% |
|
Total
assets |
$25,414,048 |
|
$25,644,604 |
|
$24,613,257 |
|
$23,802,334 |
|
$23,647,298 |
|
(1) |
% |
|
7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings |
$7,437,016 |
|
$7,377,045 |
|
$6,929,750 |
|
$6,327,556 |
|
$6,427,265 |
|
1 |
% |
|
16 |
% |
|
Other interest-bearing deposits |
4,741,920 |
|
4,483,907 |
|
3,895,022 |
|
3,697,854 |
|
3,779,293 |
|
6 |
% |
|
25 |
% |
|
Time deposits |
780,355 |
|
812,749 |
|
830,412 |
|
785,154 |
|
859,551 |
|
(4) |
% |
|
(9) |
% |
|
Total interest-bearing core deposits |
12,959,291 |
|
12,673,701 |
|
11,655,184 |
|
10,810,564 |
|
11,066,109 |
|
2 |
% |
|
17 |
% |
|
Certificates of deposit $100,000 and more |
405,696 |
|
423,480 |
|
451,669 |
|
464,792 |
|
512,527 |
|
(4) |
% |
|
(21) |
% |
|
Federal funds purchased |
649,464 |
|
1,079,531 |
|
1,137,909 |
|
1,028,852 |
|
1,080,347 |
|
(40) |
% |
|
(40) |
% |
|
Securities sold under agreements to repurchase |
339,874 |
|
474,448 |
|
471,712 |
|
406,219 |
|
458,608 |
|
(28) |
% |
|
(26) |
% |
|
Trading liabilities |
713,133 |
|
728,553 |
|
634,375 |
|
621,880 |
|
671,930 |
|
(2) |
% |
|
6 |
% |
|
Other short-term borrowings (d) |
227,650 |
|
165,408 |
|
302,353 |
|
1,093,014 |
|
540,389 |
|
38 |
% |
|
(58) |
% |
|
Term borrowings
(e) |
1,570,953 |
|
1,621,983 |
|
1,664,924 |
|
1,499,959 |
|
1,505,860 |
|
(3) |
% |
|
4 |
% |
|
Total interest-bearing liabilities |
16,866,061 |
|
17,167,104 |
|
16,318,126 |
|
15,925,280 |
|
15,835,770 |
|
(2) |
% |
|
7 |
% |
|
Noninterest-bearing deposits |
5,189,939 |
|
5,098,361 |
|
4,974,748 |
|
4,602,292 |
|
4,547,838 |
|
2 |
% |
|
14 |
% |
|
Fixed income payables |
27,608 |
|
34,800 |
|
40,273 |
|
36,762 |
|
34,293 |
|
(21) |
% |
|
(19) |
% |
|
Derivative liabilities |
123,397 |
|
124,305 |
|
124,530 |
|
130,997 |
|
138,282 |
|
(1) |
% |
|
(11) |
% |
|
Other liabilities |
695,114 |
|
612,513 |
|
503,851 |
|
475,162 |
|
533,053 |
|
13 |
% |
|
30 |
% |
|
Total
liabilities |
22,902,119 |
|
23,037,083 |
|
21,961,528 |
|
21,170,493 |
|
21,089,236 |
|
(1) |
% |
|
9 |
% |
|
Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock (f) |
146,146 |
|
146,225 |
|
146,789 |
|
147,820 |
|
148,085 |
|
* |
|
|
(1) |
% |
|
Capital surplus (f) |
1,370,653 |
|
1,377,178 |
|
1,387,116 |
|
1,408,682 |
|
1,416,811 |
|
* |
|
|
(3) |
% |
|
Undivided profits |
775,881 |
|
868,605 |
|
846,656 |
|
810,164 |
|
733,095 |
|
(11) |
% |
|
6 |
% |
|
Accumulated other comprehensive loss, net |
(171,806) |
|
(175,542) |
|
(119,887) |
|
(125,880) |
|
(130,984) |
|
(2) |
% |
|
31 |
% |
|
Preferred stock |
95,624 |
|
95,624 |
|
95,624 |
|
95,624 |
|
95,624 |
|
* |
|
|
* |
|
|
Noncontrolling
interest (g) |
295,431 |
|
295,431 |
|
295,431 |
|
295,431 |
|
295,431 |
|
* |
|
|
* |
|
|
Total equity |
2,511,929 |
|
2,607,521 |
|
2,651,729 |
|
2,631,841 |
|
2,558,062 |
|
(4) |
% |
|
(2) |
% |
|
Total liabilities
and equity |
$25,414,048 |
|
$25,644,604 |
|
$24,613,257 |
|
$23,802,334 |
|
$23,647,298 |
|
(1) |
% |
|
7 |
% |
|
NM - Not meaningful |
* Amount is less than one percent. |
(a) |
Includes loans on nonaccrual status. |
(b) |
4Q14 decrease related to the sale of mortgage loans HFS in third quarter. |
(c) |
Includes excess balances held at Fed. 1Q15 and 4Q14 increase driven by inflow of customer deposits and proceeds from the issuance of senior notes in fourth quarter. |
(d) |
3Q14 and 2Q14 include increased FHLB borrowings as a result of loan growth and deposit fluctuations. |
(e) |
In 1Q15 $304 million of FTBNA subordinated notes matured. In 4Q14 FTBNA issued $400 million of senior bank notes. |
(f) |
Decreases primarily relate to shares purchased under share repurchase programs. |
(g) |
Consists of preferred stock of subsidiaries. |
FHN CONSOLIDATED NET INTEREST INCOME (a)
Quarterly, Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q15 Changes vs. |
(Thousands) |
2Q15 |
|
1Q15 |
|
4Q14 |
|
3Q14 |
|
2Q14 |
|
1Q15 |
|
2Q14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned income (b) |
$155,565 |
|
$146,192 |
|
$148,078 |
|
$146,931 |
|
$144,975 |
|
6 |
% |
|
7 |
% |
|
Loans held-for-sale |
1,350 |
|
1,491 |
|
1,483 |
|
3,263 |
|
3,209 |
|
(9) |
% |
|
(58) |
% |
|
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. treasuries |
- |
|
- |
|
- |
|
5 |
|
7 |
|
NM |
|
|
NM |
|
|
U.S. government agencies |
21,432 |
|
20,955 |
|
21,317 |
|
21,376 |
|
21,530 |
|
2 |
% |
|
* |
|
|
States and municipalities |
97 |
|
125 |
|
159 |
|
109 |
|
97 |
|
(22) |
% |
|
* |
|
|
Other |
1,853 |
|
1,876 |
|
1,875 |
|
1,866 |
|
2,103 |
|
(1) |
% |
|
(12) |
% |
|
Total investment securities |
23,382 |
|
22,956 |
|
23,351 |
|
23,356 |
|
23,737 |
|
2 |
% |
|
(1) |
% |
|
Trading securities |
9,289 |
|
9,281 |
|
8,701 |
|
7,944 |
|
7,839 |
|
* |
|
|
18 |
% |
|
Other earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold |
79 |
|
57 |
|
69 |
|
92 |
|
73 |
|
39 |
% |
|
8 |
% |
|
Securities purchased under agreements to resell (c) |
(254) |
|
(252) |
|
(217) |
|
(363) |
|
(218) |
|
(1) |
% |
|
(17) |
% |
|
Interest-bearing cash |
267 |
|
874 |
|
611 |
|
134 |
|
182 |
|
(69) |
% |
|
47 |
% |
|
Total other earning assets |
92 |
|
679 |
|
463 |
|
(137) |
|
37 |
|
(86) |
% |
|
NM |
|
|
Interest income |
$189,678 |
|
$180,599 |
|
$182,076 |
|
$181,357 |
|
$179,797 |
|
5 |
% |
|
5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings |
$2,970 |
|
$3,307 |
|
$3,087 |
|
$2,600 |
|
$2,792 |
|
(10) |
% |
|
6 |
% |
|
Other interest-bearing deposits |
1,104 |
|
957 |
|
760 |
|
754 |
|
746 |
|
15 |
% |
|
48 |
% |
|
Time deposits |
1,324 |
|
1,432 |
|
1,742 |
|
1,786 |
|
2,486 |
|
(8) |
% |
|
(47) |
% |
|
Total interest-bearing core deposits |
5,398 |
|
5,696 |
|
5,589 |
|
5,140 |
|
6,024 |
|
(5) |
% |
|
(10) |
% |
|
Certificates of deposit $100,000 and more |
830 |
|
882 |
|
513 |
|
685 |
|
869 |
|
(6) |
% |
|
(4) |
% |
|
Federal funds purchased |
408 |
|
673 |
|
729 |
|
654 |
|
683 |
|
(39) |
% |
|
(40) |
% |
|
Securities sold under agreements to repurchase |
42 |
|
95 |
|
83 |
|
63 |
|
109 |
|
(56) |
% |
|
(61) |
% |
|
Trading liabilities |
3,770 |
|
3,914 |
|
3,950 |
|
3,782 |
|
4,087 |
|
(4) |
% |
|
(8) |
% |
|
Other short-term borrowings |
276 |
|
278 |
|
388 |
|
548 |
|
403 |
|
(1) |
% |
|
(32) |
% |
|
Term borrowings (d) |
9,666 |
|
9,664 |
|
9,146 |
|
8,445 |
|
8,416 |
|
* |
|
|
15 |
% |
|
Interest expense |
20,390 |
|
21,202 |
|
20,398 |
|
19,317 |
|
20,591 |
|
(4) |
% |
|
(1) |
% |
|
Net interest income - tax equivalent basis |
169,288 |
|
159,397 |
|
161,678 |
|
162,040 |
|
159,206 |
|
6 |
% |
|
6 |
% |
|
Fully taxable equivalent adjustment |
(2,648) |
|
(2,531) |
|
(2,628) |
|
(2,499) |
|
(2,438) |
|
(5) |
% |
|
(9) |
% |
|
Net interest income |
$166,640 |
|
$156,866 |
|
$159,050 |
|
$159,541 |
|
$156,768 |
|
6 |
% |
|
6 |
% |
|
NM - Not meaningful |
* Amount is less than one percent. |
(a) |
Net interest income adjusted to a fully taxable equivalent (“FTE”) basis assuming a statutory federal income tax of 35 percent and, where applicable, state income taxes. |
(b) |
Includes interest on loans in nonaccrual status. |
(c) |
Driven by negative market rates on reverse repurchase agreements. |
(d) |
4Q14 increase related to the issuance of $400 million of senior notes. |
FHN CONSOLIDATED AVERAGE BALANCE SHEET: YIELDS AND
RATES
Quarterly, Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q15 |
|
|
1Q15 |
|
|
4Q14 |
|
|
3Q14 |
|
|
2Q14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning assets (a): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned income (b): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans |
3.60 |
% |
|
3.50 |
% |
|
3.55 |
% |
|
3.51 |
% |
|
3.59 |
% |
|
Retail loans |
3.94 |
|
|
3.96 |
|
|
3.97 |
|
|
4.01 |
|
|
4.06 |
|
|
Total loans, net of unearned income (c) |
3.71 |
|
|
3.67 |
|
|
3.71 |
|
|
3.70 |
|
|
3.78 |
|
|
Loans held-for-sale |
4.17 |
|
|
4.31 |
|
|
4.12 |
|
|
4.09 |
|
|
3.61 |
|
|
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. treasuries |
NM |
|
|
NM |
|
|
NM |
|
|
0.07 |
|
|
0.07 |
|
|
U.S. government agencies |
2.45 |
|
|
2.47 |
|
|
2.54 |
|
|
2.56 |
|
|
2.59 |
|
|
States and municipalities |
2.77 |
|
|
3.46 |
|
|
4.38 |
|
|
2.50 |
|
|
1.99 |
|
|
Other |
4.08 |
|
|
4.13 |
|
|
4.13 |
|
|
4.04 |
|
|
4.44 |
|
|
Total investment securities |
2.53 |
|
|
2.56 |
|
|
2.62 |
|
|
2.61 |
|
|
2.65 |
|
|
Trading securities |
2.73 |
|
|
2.71 |
|
|
2.94 |
|
|
3.00 |
|
|
2.80 |
|
|
Other earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold |
1.00 |
|
|
0.97 |
|
|
1.02 |
|
|
0.98 |
|
|
1.00 |
|
|
Securities purchased under agreements to resell (d) |
(0.13) |
|
|
(0.13) |
|
|
(0.13) |
|
|
(0.22) |
|
|
(0.13) |
|
|
Interest-bearing cash |
0.23 |
|
|
0.24 |
|
|
0.24 |
|
|
0.19 |
|
|
0.20 |
|
|
Total other earning assets |
0.03 |
|
|
0.12 |
|
|
0.11 |
|
|
(0.06) |
|
|
0.01 |
|
|
Interest income/total earning assets |
3.27 |
% |
|
3.11 |
% |
|
3.22 |
% |
|
3.33 |
% |
|
3.35 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings |
0.16 |
% |
|
0.18 |
% |
|
0.18 |
% |
|
0.16 |
% |
|
0.17 |
% |
|
Other interest-bearing deposits |
0.09 |
|
|
0.09 |
|
|
0.08 |
|
|
0.08 |
|
|
0.08 |
|
|
Time deposits |
0.68 |
|
|
0.71 |
|
|
0.83 |
|
|
0.90 |
|
|
1.16 |
|
|
Total interest-bearing core deposits |
0.17 |
|
|
0.18 |
|
|
0.19 |
|
|
0.19 |
|
|
0.22 |
|
|
Certificates of deposit $100,000 and more |
0.82 |
|
|
0.84 |
|
|
0.45 |
|
|
0.59 |
|
|
0.68 |
|
|
Federal funds purchased |
0.25 |
|
|
0.25 |
|
|
0.25 |
|
|
0.25 |
|
|
0.25 |
|
|
Securities sold under agreements to repurchase |
0.05 |
|
|
0.08 |
|
|
0.07 |
|
|
0.06 |
|
|
0.10 |
|
|
Trading liabilities |
2.12 |
|
|
2.18 |
|
|
2.47 |
|
|
2.41 |
|
|
2.44 |
|
|
Other short-term borrowings |
0.49 |
|
|
0.68 |
|
|
0.51 |
|
|
0.20 |
|
|
0.30 |
|
|
Term borrowings (e) |
2.47 |
|
|
2.39 |
|
|
2.20 |
|
|
2.25 |
|
|
2.24 |
|
|
Interest expense/total interest-bearing liabilities |
0.48 |
|
|
0.50 |
|
|
0.50 |
|
|
0.48 |
|
|
0.52 |
|
|
Net interest spread |
2.79 |
% |
|
2.61 |
% |
|
2.72 |
% |
|
2.85 |
% |
|
2.83 |
% |
|
Effect of interest-free sources used to fund earning assets |
0.13 |
|
|
0.13 |
|
|
0.14 |
|
|
0.12 |
|
|
0.14 |
|
|
Net interest margin |
2.92 |
% |
|
2.74 |
% |
|
2.86 |
% |
|
2.97 |
% |
|
2.97 |
% |
|
Yields are adjusted to a FTE basis assuming a statutory federal income tax rate of 35 percent and, where applicable, state income taxes. |
NM - Not meaningful |
(a) |
Earning assets yields are expressed net of unearned income. |
(b) |
Includes loan fees and cash basis interest income. |
(c) |
Includes loans on nonaccrual status. |
(d) |
Driven by negative market rates on reverse repurchase agreements. |
(e) |
Rates are expressed net of unamortized debenture cost for term borrowings. |
FHN CAPITAL HIGHLIGHTS
Quarterly, Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q15 Changes vs. |
(Dollars and shares in thousands) |
2Q15 |
|
|
1Q15 |
|
|
4Q14 |
|
|
3Q14 |
|
|
2Q14 |
|
|
1Q15 |
|
2Q14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 capital (a) (c) |
$2,172,769 |
|
|
$2,133,554 |
|
|
N/A |
|
|
N/A |
|
|
N/A |
|
|
2 |
% |
|
NM |
|
|
Tier 1 capital (a) (b) (c) |
2,500,697 |
|
|
$2,452,242 |
|
|
$2,813,503 |
|
|
$2,783,147 |
|
|
$2,751,933 |
|
|
2 |
% |
|
(9) |
% |
|
Total capital (a) (d) |
$2,912,794 |
|
|
$2,912,595 |
|
|
$3,148,336 |
|
|
$3,121,359 |
|
|
$3,092,212 |
|
|
* |
|
|
(6) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk-weighted assets (“RWA”) (a) |
$20,875,200 |
|
|
$20,692,930 |
|
|
$19,452,656 |
|
|
$19,238,109 |
|
|
$19,400,096 |
|
|
1 |
% |
|
8 |
% |
|
Average assets for leverage (a) (c) |
$25,350,017 |
|
|
$25,570,905 |
|
|
$24,625,820 |
|
|
$23,748,667 |
|
|
$23,579,425 |
|
|
(1) |
% |
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 ratio (a) (c) |
10.41 |
% |
|
10.31 |
% |
|
N/A |
|
|
N/A |
|
|
N/A |
|
|
|
|
|
|
|
|
Tier 1 ratio (a) (c) |
11.98 |
% |
|
11.85 |
% |
|
14.46 |
% |
|
14.47 |
% |
|
14.19 |
% |
|
|
|
|
|
|
|
Total capital ratio (a) |
13.95 |
% |
|
14.08 |
% |
|
16.18 |
% |
|
16.22 |
% |
|
15.94 |
% |
|
|
|
|
|
|
|
Leverage ratio (a) (c) |
9.86 |
% |
|
9.59 |
% |
|
11.43 |
% |
|
11.72 |
% |
|
11.67 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 common to risk-weighted assets (c) (e) |
N/A |
|
|
N/A |
|
|
11.43 |
% |
|
11.40 |
% |
|
11.14 |
% |
|
|
|
|
|
|
|
Total equity to total assets |
9.98 |
% |
|
9.72 |
% |
|
10.06 |
% |
|
10.89 |
% |
|
10.80 |
% |
|
|
|
|
|
|
|
Tangible common equity/tangible
assets (“TCE/TA”) (e) |
7.80 |
% |
|
7.57 |
% |
|
7.90 |
% |
|
8.65 |
% |
|
8.57 |
% |
|
|
|
|
|
|
|
Period-end shares outstanding (f) |
234,021 |
|
|
233,499 |
|
|
234,220 |
|
|
235,249 |
|
|
237,147 |
|
|
* |
|
|
(1) |
% |
|
Cash dividends declared per common share |
$0.06 |
|
|
$0.06 |
|
|
$0.05 |
|
|
$0.05 |
|
|
$0.05 |
|
|
* |
|
|
20 |
% |
|
Book value per common share |
$9.09 |
|
|
$9.03 |
|
|
$9.35 |
|
|
$9.44 |
|
|
$9.38 |
|
|
|
|
|
|
|
|
Tangible book value per common share (e) |
$8.35 |
|
|
$8.28 |
|
|
$8.60 |
|
|
$8.76 |
|
|
$8.70 |
|
|
|
|
|
|
|
|
Market capitalization (millions) |
$3,667.1 |
|
|
$3,336.7 |
|
|
$3,180.7 |
|
|
$2,888.9 |
|
|
$2,812.6 |
|
|
|
|
|
|
|
|
Certain previously reported amounts have been reclassified to agree with current presentation. |
NM - Not Meaningful |
* Amount is less than one percent. |
(a) |
Current quarter is an estimate. 2Q15 and 1Q15 reflect revisions to regulatory capital definitions under the Basel III risk-based capital rules as phased-in. |
(b) |
2Q15 and 1Q15 include $50 million of Tier 1 qualifying trust preferred securities. All periods in 2014 include $200 million of Tier 1 qualifying trust preferred securities. |
(c) |
See Glossary of Terms for definition of ratio. |
(d) |
2Q15 and 1Q15 include $150 million of Tier 2 qualifying trust preferred which are excluded from Tier 1 under Basel III. |
(e) |
Refer to the Non-GAAP to GAAP reconciliation on page 22 of this financial supplement. |
(f) |
In periods prior to 2Q15, decreases primarily relate to shares purchased under share repurchase programs. |
FHN BUSINESS SEGMENT HIGHLIGHTS
Quarterly, Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q15 Changes vs. |
(Thousands) |
2Q15 |
|
1Q15 |
|
4Q14 |
|
3Q14 |
|
2Q14 |
|
1Q15 |
|
2Q14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional Banking |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$165,908 |
|
$154,409 |
|
$157,557 |
|
$153,868 |
|
$148,675 |
|
7 |
% |
|
12 |
% |
|
|
Noninterest income |
65,989 |
|
60,204 |
|
64,331 |
|
64,155 |
|
66,227 |
|
10 |
% |
|
* |
|
|
|
Total revenues |
231,897 |
|
214,613 |
|
221,888 |
|
218,023 |
|
214,902 |
|
8 |
% |
|
8 |
% |
|
|
Provision for loan losses |
17,078 |
|
4,915 |
|
5,568 |
|
2,204 |
|
8,425 |
|
NM |
|
|
NM |
|
|
|
Noninterest expense |
144,203 |
|
135,780 |
|
137,546 |
|
135,903 |
|
132,996 |
|
6 |
% |
|
8 |
% |
|
|
Income before income taxes |
70,616 |
|
73,918 |
|
78,774 |
|
79,916 |
|
73,481 |
|
(4) |
% |
|
(4) |
% |
|
|
Provision for income taxes |
24,996 |
|
26,381 |
|
28,057 |
|
28,561 |
|
26,070 |
|
(5) |
% |
|
(4) |
% |
|
|
Net income |
$45,620 |
|
$47,537 |
|
$50,717 |
|
$51,355 |
|
$47,411 |
|
(4) |
% |
|
(4) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$4,297 |
|
$4,323 |
|
$3,675 |
|
$2,950 |
|
$2,587 |
|
(1) |
% |
|
66 |
% |
|
|
Noninterest income |
56,001 |
|
61,565 |
|
48,506 |
|
49,896 |
|
47,564 |
|
(9) |
% |
|
18 |
% |
|
|
Total revenues |
60,298 |
|
65,888 |
|
52,181 |
|
52,846 |
|
50,151 |
|
(8) |
% |
|
20 |
% |
|
|
Noninterest expense (a) |
51,214 |
|
54,683 |
|
46,218 |
|
47,915 |
|
116 |
|
(6) |
% |
|
NM |
|
|
|
Income before income taxes |
9,084 |
|
11,205 |
|
5,963 |
|
4,931 |
|
50,035 |
|
(19) |
% |
|
(82) |
% |
|
|
Provision for income taxes |
3,171 |
|
4,167 |
|
2,059 |
|
1,696 |
|
19,143 |
|
(24) |
% |
|
(83) |
% |
|
|
Net
income |
$5,913 |
|
$7,038 |
|
$3,904 |
|
$3,235 |
|
$30,892 |
|
(16) |
% |
|
(81) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income/(expense) |
$(17,376) |
|
$(16,084) |
|
$(18,038) |
|
$(14,246) |
|
$(11,968) |
|
(8) |
% |
|
(45) |
% |
|
|
Noninterest income |
3,901 |
|
5,385 |
|
4,400 |
|
4,139 |
|
5,215 |
|
(28) |
% |
|
(25) |
% |
|
|
Total revenues |
(13,475) |
|
(10,699) |
|
(13,638) |
|
(10,107) |
|
(6,753) |
|
(26) |
% |
|
NM |
|
|
|
Noninterest expense |
13,770 |
|
14,169 |
|
14,017 |
|
16,511 |
|
13,532 |
|
(3) |
% |
|
2 |
% |
|
|
Loss before income taxes |
(27,245) |
|
(24,868) |
|
(27,655) |
|
(26,618) |
|
(20,285) |
|
(10) |
% |
|
(34) |
% |
|
|
Benefit for income taxes |
(15,882) |
|
(11,640) |
|
(19,601) |
|
(16,928) |
|
(16,369) |
|
(36) |
% |
|
3 |
% |
|
|
Net
loss |
$(11,363) |
|
$(13,228) |
|
$(8,054) |
|
$(9,690) |
|
$(3,916) |
|
14 |
% |
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Strategic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$13,811 |
|
$14,218 |
|
$15,856 |
|
$16,969 |
|
$17,474 |
|
(3) |
% |
|
(21) |
% |
|
|
Noninterest income (b) |
4,410 |
|
2,535 |
|
2,361 |
|
39,625 |
|
7,895 |
|
74 |
% |
|
(44) |
% |
|
|
Total revenues |
18,221 |
|
16,753 |
|
18,217 |
|
56,594 |
|
25,369 |
|
9 |
% |
|
(28) |
% |
|
|
Provision/(provision credit) for loan losses |
(15,078) |
|
85 |
|
432 |
|
3,796 |
|
(3,425) |
|
NM |
|
|
NM |
|
|
|
Noninterest expense (c) |
9,207 |
|
171,589 |
|
9,528 |
|
43,687 |
|
16,518 |
|
(95) |
% |
|
(44) |
% |
|
|
Income/(loss) before income taxes |
24,092 |
|
(154,921) |
|
8,257 |
|
9,111 |
|
12,276 |
|
NM |
|
|
96 |
% |
|
|
Provision/(benefit) for income taxes |
9,305 |
|
(41,169) |
|
3,184 |
|
3,513 |
|
4,734 |
|
NM |
|
|
97 |
% |
|
|
Net
income/(loss) |
$14,787 |
|
$(113,752) |
|
$5,073 |
|
$5,598 |
|
$7,542 |
|
NM |
|
|
96 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$166,640 |
|
$156,866 |
|
$159,050 |
|
$159,541 |
|
$156,768 |
|
6 |
% |
|
6 |
% |
|
|
Noninterest income |
130,301 |
|
129,689 |
|
119,598 |
|
157,815 |
|
126,901 |
|
* |
|
|
3 |
% |
|
|
Total revenues |
296,941 |
|
286,555 |
|
278,648 |
|
317,356 |
|
283,669 |
|
4 |
% |
|
5 |
% |
|
|
Provision for loan losses |
2,000 |
|
5,000 |
|
6,000 |
|
6,000 |
|
5,000 |
|
(60) |
% |
|
(60) |
% |
|
|
Noninterest expense |
218,394 |
|
376,221 |
|
207,309 |
|
244,016 |
|
163,162 |
|
(42) |
% |
|
34 |
% |
|
|
Income/(loss) before income taxes |
76,547 |
|
(94,666) |
|
65,339 |
|
67,340 |
|
115,507 |
|
NM |
|
|
(34) |
% |
|
|
Provision/(benefit) for income taxes |
21,590 |
|
(22,261) |
|
13,699 |
|
16,842 |
|
33,578 |
|
NM |
|
|
(36) |
% |
|
|
Net
income/(loss) |
$54,957 |
|
$(72,405) |
|
$51,640 |
|
$50,498 |
|
$81,929 |
|
NM |
|
|
(33) |
% |
|
|
NM - Not meaningful |
* Amount is less than one percent. |
(a) |
2Q14 includes $47.1 million related to agreements with insurance companies for the recovery of expenses FHN incurred in connection with the Sentinel litigation matter which was settled in 2011. |
(b) |
3Q14 includes $39.7 million of gains on the sales of HFS mortgage loans. |
(c) |
1Q15 includes $162.5 million of loss accruals related to the settlement of potential claims related to FHN’s underwriting and origination of FHA-insured mortgage loans; 3Q14 includes $50.0 million of loss accruals related to legal matters, partially offset by $15.0 million of expense reversals related to agreements with insurance companies for the recovery of expenses FHN incurred related to litigation losses in previous periods. |
FHN REGIONAL BANKING
Quarterly, Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q15 Changes vs. |
|
2Q15 |
|
|
1Q15 |
|
|
4Q14 |
|
|
3Q14 |
|
|
2Q14 |
|
|
1Q15 |
|
2Q14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Statement (thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$165,908 |
|
|
$154,409 |
|
|
$157,557 |
|
|
$153,868 |
|
|
$148,675 |
|
|
7 |
% |
|
12 |
% |
|
Provision for loan losses |
17,078 |
|
|
4,915 |
|
|
5,568 |
|
|
2,204 |
|
|
8,425 |
|
|
NM |
|
|
NM |
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NSF / Overdraft fees (a) |
10,664 |
|
|
9,144 |
|
|
11,619 |
|
|
11,425 |
|
|
10,636 |
|
|
17 |
% |
|
* |
|
|
Cash management fees |
8,884 |
|
|
8,878 |
|
|
8,719 |
|
|
8,522 |
|
|
8,537 |
|
|
* |
|
|
4 |
% |
|
Debit card income |
3,327 |
|
|
3,064 |
|
|
3,117 |
|
|
2,945 |
|
|
2,934 |
|
|
9 |
% |
|
13 |
% |
|
Other |
4,538 |
|
|
4,537 |
|
|
4,655 |
|
|
4,705 |
|
|
4,850 |
|
|
* |
|
|
(6) |
% |
|
Total deposit transactions and cash management |
27,413 |
|
|
25,623 |
|
|
28,110 |
|
|
27,597 |
|
|
26,957 |
|
|
7 |
% |
|
2 |
% |
|
Brokerage, management fees and commissions |
12,456 |
|
|
11,399 |
|
|
11,647 |
|
|
12,333 |
|
|
12,844 |
|
|
9 |
% |
|
(3) |
% |
|
Trust services and investment management |
7,432 |
|
|
6,713 |
|
|
6,960 |
|
|
6,794 |
|
|
7,325 |
|
|
11 |
% |
|
1 |
% |
|
Bankcard income (b) |
5,562 |
|
|
4,915 |
|
|
5,469 |
|
|
5,224 |
|
|
7,648 |
|
|
13 |
% |
|
(27) |
% |
|
Other service charges |
2,637 |
|
|
2,422 |
|
|
2,395 |
|
|
2,630 |
|
|
2,628 |
|
|
9 |
% |
|
* |
|
|
Miscellaneous revenue |
10,489 |
|
|
9,132 |
|
|
9,750 |
|
|
9,577 |
|
|
8,825 |
|
|
15 |
% |
|
19 |
% |
|
Total noninterest income |
65,989 |
|
|
60,204 |
|
|
64,331 |
|
|
64,155 |
|
|
66,227 |
|
|
10 |
% |
|
* |
|
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee compensation, incentives, and benefits |
49,692 |
|
|
48,272 |
|
|
46,175 |
|
|
46,259 |
|
|
46,055 |
|
|
3 |
% |
|
8 |
% |
|
Other |
94,511 |
|
|
87,508 |
|
|
91,371 |
|
|
89,644 |
|
|
86,941 |
|
|
8 |
% |
|
9 |
% |
|
Total noninterest expense |
144,203 |
|
|
135,780 |
|
|
137,546 |
|
|
135,903 |
|
|
132,996 |
|
|
6 |
% |
|
8 |
% |
|
Income before income taxes |
$70,616 |
|
|
$73,918 |
|
|
$78,774 |
|
|
$79,916 |
|
|
$73,481 |
|
|
(4) |
% |
|
(4) |
% |
|
PPNR (c) |
87,694 |
|
|
78,833 |
|
|
84,342 |
|
|
82,120 |
|
|
81,906 |
|
|
11 |
% |
|
7 |
% |
|
Efficiency ratio (d) |
62.18 |
% |
|
63.27 |
% |
|
61.99 |
% |
|
62.33 |
% |
|
61.89 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet (millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loans |
$14,326 |
|
|
$13,513 |
|
|
$13,129 |
|
|
$12,886 |
|
|
$12,372 |
|
|
6 |
% |
|
16 |
% |
|
Average other earning assets |
55 |
|
|
48 |
|
|
52 |
|
|
63 |
|
|
57 |
|
|
15 |
% |
|
(4) |
% |
|
Total average earning assets |
14,381 |
|
|
13,561 |
|
|
13,181 |
|
|
12,949 |
|
|
12,429 |
|
|
6 |
% |
|
16 |
% |
|
Average core deposits |
16,752 |
|
|
16,263 |
|
|
15,335 |
|
|
14,639 |
|
|
14,808 |
|
|
3 |
% |
|
13 |
% |
|
Average other deposits |
406 |
|
|
423 |
|
|
452 |
|
|
464 |
|
|
513 |
|
|
(4) |
% |
|
(21) |
% |
|
Total average deposits |
17,158 |
|
|
16,686 |
|
|
15,787 |
|
|
15,103 |
|
|
15,321 |
|
|
3 |
% |
|
12 |
% |
|
Total period-end deposits |
17,226 |
|
|
17,240 |
|
|
16,373 |
|
|
15,119 |
|
|
15,418 |
|
|
* |
|
|
12 |
% |
|
Total period-end assets |
15,264 |
|
|
14,894 |
|
|
14,350 |
|
|
13,695 |
|
|
13,700 |
|
|
2 |
% |
|
11 |
% |
|
Net interest margin (e) |
4.69 |
% |
|
4.68 |
% |
|
4.78 |
% |
|
4.74 |
% |
|
4.82 |
% |
|
|
|
|
|
|
|
Net interest spread |
3.35 |
|
|
3.37 |
|
|
3.36 |
|
|
3.41 |
|
|
3.46 |
|
|
|
|
|
|
|
|
Loan yield |
3.48 |
|
|
3.51 |
|
|
3.50 |
|
|
3.56 |
|
|
3.63 |
|
|
|
|
|
|
|
|
Deposit average yield |
0.13 |
|
|
0.14 |
|
|
0.14 |
|
|
0.15 |
|
|
0.17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Statistics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial center locations (f) |
175 |
|
|
178 |
|
|
178 |
|
|
172 |
|
|
172 |
|
|
(2) |
% |
|
2 |
% |
|
NM - Not meaningful |
* Amount is less than one percent. |
(a) |
1Q15 levels primarily attributable to seasonality in NSF fees. |
(b) |
2Q14 includes $2.8 million of Visa volume incentives. |
(c) |
Pre-provision net revenue is not a GAAP number but is used in regulatory stress test reporting. The
presentation of PPNR in this Financial Supplement follows the regulatory definition. |
(d) |
Noninterest expense divided by total revenue. |
(e) |
Net interest margin is computed using total net interest income adjusted for FTE assuming a statutory federal income tax rate of 35 percent and, where applicable, state income taxes. |
(f) |
4Q14 increase related to the acquisition of bank branches. |
FHN FIXED INCOME
Quarterly, Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q15 Changes vs. |
|
2Q15 |
|
|
1Q15 |
|
|
4Q14 |
|
|
3Q14 |
|
|
2Q14 |
|
|
1Q15 |
|
2Q14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Statement (thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$4,297 |
|
|
$4,323 |
|
|
$3,675 |
|
|
$2,950 |
|
|
$2,587 |
|
|
(1) |
% |
|
66 |
% |
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed income product revenue |
46,685 |
|
|
53,510 |
|
|
39,030 |
|
|
41,216 |
|
|
40,457 |
|
|
(13) |
% |
|
15 |
% |
|
Other |
9,316 |
|
|
8,055 |
|
|
9,476 |
|
|
8,680 |
|
|
7,107 |
|
|
16 |
% |
|
31 |
% |
|
Total noninterest income |
56,001 |
|
|
61,565 |
|
|
48,506 |
|
|
49,896 |
|
|
47,564 |
|
|
(9) |
% |
|
18 |
% |
|
Noninterest expense (a) |
51,214 |
|
|
54,683 |
|
|
46,218 |
|
|
47,915 |
|
|
116 |
|
|
(6) |
% |
|
NM |
|
|
Income before income taxes |
$9,084 |
|
|
$11,205 |
|
|
$5,963 |
|
|
$4,931 |
|
|
$50,035 |
|
|
(19) |
% |
|
(82) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (b) |
84.93 |
% |
|
82.99 |
% |
|
88.57 |
% |
|
90.67 |
% |
|
NM |
|
|
|
|
|
|
|
|
Fixed income product average daily revenue |
$729 |
|
|
$877 |
|
|
$630 |
|
|
$644 |
|
|
$642 |
|
|
(17) |
% |
|
14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet (millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average trading inventory |
$1,358 |
|
|
$1,366 |
|
|
$1,177 |
|
|
$1,054 |
|
|
$1,112 |
|
|
(1) |
% |
|
22 |
% |
|
Average other earning assets |
761 |
|
|
781 |
|
|
677 |
|
|
648 |
|
|
668 |
|
|
(3) |
% |
|
14 |
% |
|
Total average earning assets |
2,119 |
|
|
2,147 |
|
|
1,854 |
|
|
1,702 |
|
|
1,780 |
|
|
(1) |
% |
|
19 |
% |
|
Total period-end assets |
2,273 |
|
|
2,808 |
|
|
2,138 |
|
|
2,338 |
|
|
2,197 |
|
|
(19) |
% |
|
3 |
% |
|
Net interest margin (c) |
0.87 |
% |
|
0.83 |
% |
|
0.85 |
% |
|
0.75 |
% |
|
0.61 |
% |
|
|
|
|
|
|
|
NM - Not meaningful |
(a) |
2Q14 includes $47.1 million related to agreements with insurance companies for the recovery of expenses FHN incurred in connection with the Sentinel litigation matter which was settled in 2011. |
(b) |
Noninterest expense divided by total revenue. |
(c) |
Net interest margin is computed 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 CORPORATE
Quarterly, Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q15 Changes vs. |
|
2Q15 |
|
|
1Q15 |
|
|
4Q14 |
|
|
3Q14 |
|
|
2Q14 |
|
|
1Q15 |
|
2Q14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Statement (thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income/(expense) |
$(17,376) |
|
|
$(16,084) |
|
|
$(18,038) |
|
|
$(14,246) |
|
|
$(11,968) |
|
|
(8) |
% |
|
(45) |
% |
|
Noninterest income excluding securities gains/(losses) |
3,893 |
|
|
5,109 |
|
|
4,400 |
|
|
4,005 |
|
|
5,139 |
|
|
(24) |
% |
|
(24) |
% |
|
Securities gains/(losses), net |
8 |
|
|
276 |
|
|
- |
|
|
134 |
|
|
76 |
|
|
(97) |
% |
|
(89) |
% |
|
Noninterest expense |
13,770 |
|
|
14,169 |
|
|
14,017 |
|
|
16,511 |
|
|
13,532 |
|
|
(3) |
% |
|
2 |
% |
|
Loss before income taxes |
$(27,245) |
|
|
$(24,868) |
|
|
$(27,655) |
|
|
$(26,618) |
|
|
$(20,285) |
|
|
(10) |
% |
|
(34) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balance Sheet (millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loans |
$128 |
|
|
$138 |
|
|
$148 |
|
|
$153 |
|
|
$159 |
|
|
(7) |
% |
|
(19) |
% |
|
Total earning assets |
$4,282 |
|
|
$5,162 |
|
|
$4,703 |
|
|
$3,999 |
|
|
$4,082 |
|
|
(17) |
% |
|
5 |
% |
|
Net interest margin (a) |
(1.63) |
% |
|
(1.28) |
% |
|
(1.40) |
% |
|
(1.25) |
% |
|
(1.04) |
% |
|
|
|
|
|
|
|
(a) |
Net interest margin is computed 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 NON-STRATEGIC
Quarterly, Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q15 Changes vs. |
|
2Q15 |
|
1Q15 |
|
4Q14 |
|
3Q14 |
|
2Q14 |
|
1Q15 |
|
2Q14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Statement (thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$13,811 |
|
$14,218 |
|
$15,856 |
|
$16,969 |
|
$17,474 |
|
(3) |
% |
|
(21) |
% |
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage warehouse valuation (a) |
270 |
|
1,228 |
|
1,240 |
|
41,287 |
|
8,213 |
|
(78) |
% |
|
(97) |
% |
Miscellaneous revenue (b) |
4,140 |
|
1,307 |
|
1,121 |
|
(667) |
|
1,682 |
|
NM |
|
|
NM |
|
Total noninterest income excluding securities gains/(losses) |
4,410 |
|
2,535 |
|
2,361 |
|
40,620 |
|
9,895 |
|
74 |
% |
|
(55) |
% |
Securities gains/(losses), net |
- |
|
- |
|
- |
|
(995) |
|
(2,000) |
|
NM |
|
|
NM |
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repurchase and foreclosure provision (c) |
- |
|
- |
|
- |
|
(4,300) |
|
- |
|
NM |
|
|
NM |
|
Other expenses (d) |
9,207 |
|
171,589 |
|
9,528 |
|
47,987 |
|
16,518 |
|
(95) |
% |
|
(44) |
% |
Total noninterest expense |
9,207 |
|
171,589 |
|
9,528 |
|
43,687 |
|
16,518 |
|
(95) |
% |
|
(44) |
% |
Provision/(provision credit) for loan losses |
(15,078) |
|
85 |
|
432 |
|
3,796 |
|
(3,425) |
|
NM |
|
|
NM |
|
Income/(loss) before income taxes |
$24,092 |
|
$(154,921) |
|
$8,257 |
|
$9,111 |
|
$12,276 |
|
NM |
|
|
96 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balance Sheet (millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
$2,337 |
|
$2,472 |
|
$2,592 |
|
$2,724 |
|
$2,851 |
|
(5) |
% |
|
(18) |
% |
Loans held-for-sale (e) |
115 |
|
120 |
|
125 |
|
298 |
|
335 |
|
(4) |
% |
|
(66) |
% |
Trading securities |
5 |
|
5 |
|
6 |
|
6 |
|
7 |
|
* |
|
|
(29) |
% |
Allowance for loan losses |
(99) |
|
(105) |
|
(110) |
|
(111) |
|
(117) |
|
(6) |
% |
|
(15) |
% |
Other assets |
51 |
|
63 |
|
72 |
|
78 |
|
102 |
|
(19) |
% |
|
(50) |
% |
Total assets |
2,409 |
|
2,555 |
|
2,685 |
|
2,995 |
|
3,178 |
|
(6) |
% |
|
(24) |
% |
Net interest margin (f) |
2.25 |
% |
2.19 |
% |
2.32 |
% |
2.23 |
% |
2.18 |
% |
|
|
|
|
|
Efficiency ratio (g) |
50.53 |
% |
NM |
|
52.30 |
% |
75.86 |
% |
60.35 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage Warehouse - Period-end (millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending warehouse balance (loans held-for-sale) (e) |
$106 |
|
$108 |
|
$115 |
|
$120 |
|
$330 |
|
(2) |
% |
|
(68) |
% |
Key Servicing Metric |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending servicing portfolio (millions) (h) |
$922 |
|
$966 |
|
$1,013 |
|
$1,090 |
|
$1,456 |
|
(5) |
% |
|
(37) |
% |
NM - Not meaningful |
* Amount is less than one percent. |
(a) |
3Q14 includes $39.7 million of gains on the sale of HFS mortgage loans; 2Q14 fair value adjustments reflect new information on market pricing for similar assets primarily related to the non-performing portion of the held-for-sale portfolio. |
(b) |
2Q15 includes a $2.7 million pre-tax gain on sale of property. |
(c) |
3Q14 expense reversal associated with the settlement of certain repurchase claims. |
(d) |
1Q15 includes $162.5 million of loss accruals related to the settlement of potential claims related to FHN’s underwriting and origination of FHA-insured mortgage loans; 3Q14 includes $50.0 million of loss accruals related to legal matters, partially offset by $15.0 million of expense reversals associated with agreements with insurance companies for the recovery of expenses FHN incurred related to litigation losses in previous periods. |
(e) |
4Q14 and 3Q14 decreases relate to the sale of mortgage loans HFS late in third quarter. |
(f) |
Net interest margin is computed using total net interest income adjusted for FTE assuming a statutory federal income tax rate of 35 percent and, where applicable, state income taxes. |
(g) |
Noninterest expense divided by total revenue excluding securities gains/(losses). |
(h) |
Includes mortgage loans serviced from FHN’s legacy mortgage banking business, legacy equity lending serviced for others, and mortgage loans in portfolio and warehouse. |
FHN ASSET QUALITY: CONSOLIDATED
Quarterly, Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q15 Changes vs. |
(Thousands) |
2Q15 |
|
|
1Q15 |
|
|
4Q14 |
|
|
3Q14 |
|
|
2Q14 |
|
|
1Q15 |
|
2Q14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for Loan Losses Walk-Forward |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning reserve |
$228,328 |
|
|
$232,448 |
|
|
$238,641 |
|
|
$243,628 |
|
|
$247,246 |
|
|
(2) |
% |
|
(8) |
% |
|
Provision |
2,000 |
|
|
5,000 |
|
|
6,000 |
|
|
6,000 |
|
|
5,000 |
|
|
(60) |
% |
|
(60) |
% |
|
Charge-offs |
(19,434) |
|
|
(17,999) |
|
|
(23,306) |
|
|
(23,684) |
|
|
(18,764) |
|
|
8 |
% |
|
4 |
% |
|
Recoveries |
10,457 |
|
|
8,879 |
|
|
11,113 |
|
|
12,697 |
|
|
10,146 |
|
|
18 |
% |
|
3 |
% |
|
Ending balance |
$221,351 |
|
|
$228,328 |
|
|
$232,448 |
|
|
$238,641 |
|
|
$243,628 |
|
|
(3) |
% |
|
(9) |
% |
|
Reserve for unfunded commitments |
5,561 |
|
|
4,135 |
|
|
4,770 |
|
|
2,313 |
|
|
2,209 |
|
|
34 |
% |
|
NM |
|
|
Total allowance for loan losses plus reserve for unfunded commitments |
$226,912 |
|
|
$232,463 |
|
|
$237,218 |
|
|
$240,954 |
|
|
$245,837 |
|
|
(2) |
% |
|
(8) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for Loan Losses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional Banking |
$132,741 |
|
|
$125,982 |
|
|
$126,812 |
|
|
$127,873 |
|
|
$131,801 |
|
|
5 |
% |
|
1 |
% |
|
Non-Strategic |
88,610 |
|
|
102,346 |
|
|
105,636 |
|
|
110,768 |
|
|
111,827 |
|
|
(13) |
% |
|
(21) |
% |
|
Corporate (a) |
NM |
|
|
NM |
|
|
NM |
|
|
NM |
|
|
NM |
|
|
NM |
|
|
NM |
|
|
Total allowance for loan losses |
$221,351 |
|
|
$228,328 |
|
|
$232,448 |
|
|
$238,641 |
|
|
$243,628 |
|
|
(3) |
% |
|
(9) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional Banking |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans |
$69,094 |
|
|
$63,620 |
|
|
$64,654 |
|
|
$70,805 |
|
|
$89,191 |
|
|
9 |
% |
|
(23) |
% |
|
Foreclosed real estate (b) |
19,230 |
|
|
19,704 |
|
|
20,451 |
|
|
25,404 |
|
|
26,598 |
|
|
(2) |
% |
|
(28) |
% |
|
Total Regional Banking |
$88,324 |
|
|
$83,324 |
|
|
$85,105 |
|
|
$96,209 |
|
|
$115,789 |
|
|
6 |
% |
|
(24) |
% |
|
Non-Strategic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans |
$130,894 |
|
|
$133,804 |
|
|
$135,740 |
|
|
$139,038 |
|
|
$138,789 |
|
|
(2) |
% |
|
(6) |
% |
|
Nonperforming loans held-for-sale after fair value adjustments (c) |
6,372 |
|
|
6,888 |
|
|
7,643 |
|
|
7,931 |
|
|
69,184 |
|
|
(7) |
% |
|
(91) |
% |
|
Foreclosed real estate (b) |
9,879 |
|
|
9,977 |
|
|
9,979 |
|
|
9,857 |
|
|
12,183 |
|
|
(1) |
% |
|
(19) |
% |
|
Total Non-Strategic |
$147,145 |
|
|
$150,669 |
|
|
$153,362 |
|
|
$156,826 |
|
|
$220,156 |
|
|
(2) |
% |
|
(33) |
% |
|
Corporate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans |
$3,079 |
|
|
$2,805 |
|
|
$3,045 |
|
|
$3,903 |
|
|
$3,636 |
|
|
10 |
% |
|
(15) |
% |
|
Total nonperforming assets |
$238,548 |
|
|
$236,798 |
|
|
$241,512 |
|
|
$256,938 |
|
|
$339,581 |
|
|
1 |
% |
|
(30) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Charge-Offs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional Banking |
$10,318 |
|
|
$5,745 |
|
|
$6,629 |
|
|
$6,132 |
|
|
$4,858 |
|
|
80 |
% |
|
NM |
|
|
Non-Strategic |
(1,341) |
|
|
3,375 |
|
|
5,564 |
|
|
4,855 |
|
|
3,760 |
|
|
NM |
|
|
NM |
|
|
Total net charge-offs |
$8,977 |
|
|
$9,120 |
|
|
$12,193 |
|
|
$10,987 |
|
|
$8,618 |
|
|
(2) |
% |
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Key Ratios (d) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NPL % |
1.20 |
% |
|
1.20 |
% |
|
1.25 |
% |
|
1.35 |
% |
|
1.47 |
% |
|
|
|
|
|
|
|
NPA % |
1.37 |
|
|
1.37 |
|
|
1.44 |
|
|
1.57 |
|
|
1.71 |
|
|
|
|
|
|
|
|
Net charge-offs % |
0.21 |
|
|
0.23 |
|
|
0.30 |
|
|
0.28 |
|
|
0.22 |
|
|
|
|
|
|
|
|
Allowance / loans |
1.31 |
|
|
1.36 |
|
|
1.43 |
|
|
1.51 |
|
|
1.54 |
|
|
|
|
|
|
|
|
Allowance / NPL |
1.09 |
x |
|
1.14 |
x |
|
1.14 |
x |
|
1.12 |
x |
|
1.05 |
x |
|
|
|
|
|
|
|
Allowance / NPA |
0.95 |
x |
|
0.99 |
x |
|
0.99 |
x |
|
0.96 |
x |
|
0.90 |
x |
|
|
|
|
|
|
|
Allowance / net charge-offs |
6.15 |
x |
|
6.17 |
x |
|
4.81 |
x |
|
5.47 |
x |
|
7.05 |
x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans past due 90 days or more (e) |
$39,077 |
|
|
$46,889 |
|
|
$50,699 |
|
|
$57,786 |
|
|
$68,369 |
|
|
(17) |
% |
|
(43) |
% |
|
Guaranteed portion (e) |
16,221 |
|
|
18,552 |
|
|
24,036 |
|
|
27,020 |
|
|
32,782 |
|
|
(13) |
% |
|
(51) |
% |
|
Foreclosed real estate from government insured loans |
11,159 |
|
|
10,096 |
|
|
9,492 |
|
|
12,735 |
|
|
18,771 |
|
|
11 |
% |
|
(41) |
% |
|
Period-end loans, net of unearned income (millions) |
16,937 |
|
|
16,732 |
|
|
16,230 |
|
|
15,812 |
|
|
15,796 |
|
|
1 |
% |
|
7 |
% |
|
NM - Not meaningful |
* Amount is less than one percent. |
(a) |
The valuation adjustment taken upon exercise of clean-up calls included expected losses. |
(b) |
Excludes foreclosed real estate from government-insured mortgages. |
(c) |
3Q14 decrease is related to the sale of held-for-sale mortgage loans. |
(d) |
See Glossary of Terms for definitions of Consolidated Key Ratios. |
(e) |
Includes loans held-for-sale. |
FHN ASSET QUALITY: CONSOLIDATED
Quarterly, Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q15 Changes vs. |
|
2Q15 |
|
|
1Q15 |
|
|
4Q14 |
|
|
3Q14 |
|
|
2Q14 |
|
1Q15 |
|
2Q14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Portfolio Details |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
C&I |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans ($ millions) |
$9,833 |
|
|
$9,638 |
|
|
$9,007 |
|
|
$8,477 |
|
|
$8,403 |
|
2 |
% |
|
17 |
% |
30+ Delinq. % (a) |
0.08 |
% |
|
0.07 |
% |
|
0.05 |
% |
|
0.10 |
% |
|
0.19 |
% |
|
|
|
|
|
NPL % |
0.44 |
|
|
0.35 |
|
|
0.36 |
|
|
0.49 |
|
|
0.58 |
|
|
|
|
|
|
Charge-offs % (qtr. annualized) |
0.17 |
|
|
0.07 |
|
|
0.19 |
|
|
NM |
|
|
0.20 |
|
|
|
|
|
|
Allowance / loans % |
0.80 |
% |
|
0.70 |
% |
|
0.74 |
% |
|
0.82 |
% |
|
0.82 |
% |
|
|
|
|
|
Allowance / charge-offs |
4.85 |
x |
|
10.41 |
x |
|
4.05 |
x |
|
NM |
|
|
4.35 |
x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real Estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans ($ millions) |
$1,401 |
|
|
$1,321 |
|
|
$1,278 |
|
|
$1,278 |
|
|
$1,232 |
|
6 |
% |
|
14 |
% |
30+ Delinq. % (a) |
0.23 |
% |
|
0.33 |
% |
|
0.14 |
% |
|
0.33 |
% |
|
1.10 |
% |
|
|
|
|
|
NPL % |
0.84 |
|
|
1.01 |
|
|
1.20 |
|
|
1.11 |
|
|
1.14 |
|
|
|
|
|
|
Charge-offs % (qtr. annualized) |
0.22 |
|
|
0.03 |
|
|
NM |
|
|
0.47 |
|
|
NM |
|
|
|
|
|
|
Allowance / loans % |
1.53 |
% |
|
1.34 |
% |
|
1.45 |
% |
|
1.21 |
% |
|
1.28 |
% |
|
|
|
|
|
Allowance / charge-offs |
7.29 |
x |
|
45.37 |
x |
|
NM |
|
|
2.64 |
x |
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Real Estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans ($ millions) |
$4,870 |
|
|
$4,923 |
|
|
$5,048 |
|
|
$5,131 |
|
|
$5,219 |
|
(1) |
% |
|
(7) |
% |
30+ Delinq. % (a) |
0.94 |
% |
|
0.98 |
% |
|
1.10 |
% |
|
1.04 |
% |
|
0.93 |
% |
|
|
|
|
|
NPL % |
2.35 |
|
|
2.43 |
|
|
2.39 |
|
|
2.41 |
|
|
2.51 |
|
|
|
|
|
|
Charge-offs % (qtr. annualized) |
NM |
|
|
0.31 |
|
|
0.38 |
|
|
0.60 |
|
|
0.20 |
|
|
|
|
|
|
Allowance / loans % |
1.75 |
% |
|
2.22 |
% |
|
2.24 |
% |
|
2.31 |
% |
|
2.26 |
% |
|
|
|
|
|
Allowance / charge-offs |
NM |
|
|
7.06 |
x |
|
5.85 |
x |
|
3.83 |
x |
|
11.30 |
x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Permanent Mortgage |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans ($ millions) |
$488 |
|
|
$512 |
|
|
$539 |
|
|
$573 |
|
|
$594 |
|
(5) |
% |
|
(18) |
% |
30+ Delinq. % (a) |
2.26 |
% |
|
2.76 |
% |
|
1.72 |
% |
|
2.73 |
% |
|
1.71 |
% |
|
|
|
|
|
NPL % |
6.66 |
|
|
6.43 |
|
|
6.32 |
|
|
5.93 |
|
|
6.23 |
|
|
|
|
|
|
Charge-offs % (qtr. annualized) |
0.11 |
|
|
0.44 |
|
|
1.00 |
|
|
0.25 |
|
|
0.12 |
|
|
|
|
|
|
Allowance / loans % |
4.59 |
% |
|
3.94 |
% |
|
3.55 |
% |
|
3.53 |
% |
|
3.99 |
% |
|
|
|
|
|
Allowance / charge-offs |
40.53 |
x |
|
8.79 |
x |
|
3.46 |
x |
|
14.17 |
x |
|
31.85 |
x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit Card and Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans ($ millions) |
$346 |
|
|
$338 |
|
|
$358 |
|
|
$353 |
|
|
$348 |
|
2 |
% |
|
(1) |
% |
30+ Delinq. % (a) |
1.09 |
% |
|
1.20 |
% |
|
1.42 |
% |
|
1.44 |
% |
|
1.39 |
% |
|
|
|
|
|
NPL % |
0.22 |
|
|
0.22 |
|
|
0.21 |
|
|
0.20 |
|
|
0.39 |
|
|
|
|
|
|
Charge-offs % (qtr. annualized) |
5.73 |
|
|
3.51 |
|
|
3.33 |
|
|
3.19 |
|
|
3.35 |
|
|
|
|
|
|
Allowance / loans % |
3.84 |
% |
|
4.01 |
% |
|
4.11 |
% |
|
4.17 |
% |
|
5.01 |
% |
|
|
|
|
|
Allowance / charge-offs |
0.66 |
x |
|
1.10 |
x |
|
1.24 |
x |
|
1.31 |
x |
|
1.51 |
x |
|
|
|
|
|
NM - Not meaningful |
Certain previously reported amounts have been reclassified to agree with current presentation. |
(a) |
30+ Delinquency % includes all accounts delinquent more than one month and still accruing interest. |
FHN ASSET QUALITY: REGIONAL BANKING
Quarterly, Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q15 Changes vs. |
|
2Q15 |
|
|
1Q15 |
|
|
4Q14 |
|
|
3Q14 |
|
|
2Q14 |
|
|
1Q15 |
|
2Q14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Regional Banking |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans ($ millions) |
$14,556 |
|
|
$14,200 |
|
|
$13,568 |
|
|
$13,002 |
|
|
$12,853 |
|
|
3 |
% |
|
13 |
% |
|
30+ Delinq. % (a) |
0.21 |
% |
|
0.24 |
% |
|
0.22 |
% |
|
0.29 |
% |
|
0.43 |
% |
|
|
|
|
|
|
|
NPL % |
0.47 |
|
|
0.45 |
|
|
0.48 |
|
|
0.54 |
|
|
0.69 |
|
|
|
|
|
|
|
|
Charge-offs % (qtr. annualized) |
0.29 |
|
|
0.17 |
|
|
0.20 |
|
|
0.19 |
|
|
0.16 |
|
|
|
|
|
|
|
|
Allowance / loans % |
0.91 |
% |
|
0.89 |
% |
|
0.93 |
% |
|
0.98 |
% |
|
1.03 |
% |
|
|
|
|
|
|
|
Allowance / charge-offs |
3.21 |
x |
|
5.41 |
x |
|
4.82 |
x |
|
5.26 |
x |
|
6.76 |
x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Portfolio Details |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
C&I |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans ($ millions) |
$9,398 |
|
|
$9,185 |
|
|
$8,553 |
|
|
$8,022 |
|
|
$7,947 |
|
|
2 |
% |
|
18 |
% |
|
30+ Delinq. % (a) |
0.08 |
% |
|
0.07 |
% |
|
0.05 |
% |
|
0.09 |
% |
|
0.20 |
% |
|
|
|
|
|
|
|
NPL % |
0.32 |
|
|
0.24 |
|
|
0.24 |
|
|
0.37 |
|
|
0.57 |
|
|
|
|
|
|
|
|
Charge-offs % (qtr. annualized) |
0.18 |
|
|
0.08 |
|
|
0.21 |
|
|
NM |
|
|
0.09 |
|
|
|
|
|
|
|
|
Allowance / loans % |
0.78 |
% |
|
0.68 |
% |
|
0.72 |
% |
|
0.81 |
% |
|
0.84 |
% |
|
|
|
|
|
|
|
Allowance / charge-offs |
4.48 |
x |
|
9.42 |
x |
|
3.62 |
x |
|
NM |
|
|
10.12 |
x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real Estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans ($ millions) |
$1,400 |
|
|
$1,320 |
|
|
$1,273 |
|
|
$1,274 |
|
|
$1,226 |
|
|
6 |
% |
|
14 |
% |
|
30+ Delinq. % (a) (b) |
0.23 |
% |
|
0.32 |
% |
|
0.14 |
% |
|
0.33 |
% |
|
1.10 |
% |
|
|
|
|
|
|
|
NPL % |
0.84 |
|
|
1.00 |
|
|
1.14 |
|
|
1.04 |
|
|
1.06 |
|
|
|
|
|
|
|
|
Charge-offs % (qtr. annualized) |
0.22 |
|
|
0.03 |
|
|
NM |
|
|
0.49 |
|
|
NM |
|
|
|
|
|
|
|
|
Allowance / loans % |
1.53 |
% |
|
1.33 |
% |
|
1.43 |
% |
|
1.18 |
% |
|
1.25 |
% |
|
|
|
|
|
|
|
Allowance / charge-offs |
7.22 |
x |
|
52.33 |
x |
|
NM |
|
|
2.46 |
x |
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Real Estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans ($ millions) |
$3,413 |
|
|
$3,358 |
|
|
$3,385 |
|
|
$3,356 |
|
|
$3,334 |
|
|
2 |
% |
|
2 |
% |
|
30+ Delinq. % (a) |
0.47 |
% |
|
0.55 |
% |
|
0.57 |
% |
|
0.61 |
% |
|
0.64 |
% |
|
|
|
|
|
|
|
NPL % |
0.78 |
|
|
0.84 |
|
|
0.86 |
|
|
0.83 |
|
|
0.90 |
|
|
|
|
|
|
|
|
Charge-offs % (qtr. annualized) |
0.08 |
|
|
0.15 |
|
|
0.11 |
|
|
0.39 |
|
|
0.18 |
|
|
|
|
|
|
|
|
Allowance / loans % |
0.73 |
% |
|
0.97 |
% |
|
0.95 |
% |
|
0.99 |
% |
|
0.97 |
% |
|
|
|
|
|
|
|
Allowance / charge-offs |
9.73 |
x |
|
6.45 |
x |
|
8.55 |
x |
|
2.55 |
x |
|
5.32 |
x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit Card, Permanent Mortgage, and Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans ($ millions) |
$345 |
|
|
$337 |
|
|
$357 |
|
|
$351 |
|
|
$346 |
|
|
2 |
% |
|
* |
|
|
30+ Delinq. % (a) |
1.18 |
% |
|
1.29 |
% |
|
1.51 |
% |
|
1.49 |
% |
|
1.43 |
% |
|
|
|
|
|
|
|
NPL % |
0.14 |
|
|
0.15 |
|
|
0.14 |
|
|
0.15 |
|
|
0.14 |
|
|
|
|
|
|
|
|
Charge-offs % (qtr. annualized)(c) |
5.57 |
|
|
3.22 |
|
|
3.00 |
|
|
3.01 |
|
|
3.05 |
|
|
|
|
|
|
|
|
Allowance / loans % |
3.72 |
% |
|
3.88 |
% |
|
4.06 |
% |
|
4.07 |
% |
|
4.98 |
% |
|
|
|
|
|
|
|
Allowance / charge-offs |
0.66 |
x |
|
1.16 |
x |
|
1.36 |
x |
|
1.36 |
x |
|
1.64 |
x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY: CORPORATE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Permanent Mortgage |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans ($ millions) |
$113 |
|
|
$123 |
|
|
$136 |
|
|
$147 |
|
|
$155 |
|
|
(8) |
% |
|
(27) |
% |
|
30+ Delinq. % (a) |
2.51 |
% |
|
3.41 |
% |
|
2.32 |
% |
|
2.24 |
% |
|
1.91 |
% |
|
|
|
|
|
|
|
NPL % |
2.72 |
|
|
2.29 |
|
|
2.25 |
|
|
2.65 |
|
|
2.34 |
|
|
|
|
|
|
|
|
Charge-offs % (qtr. annualized) |
NM |
|
|
NM |
|
|
NM |
|
|
NM |
|
|
NM |
|
|
|
|
|
|
|
|
Allowance / loans % |
NM |
|
|
NM |
|
|
NM |
|
|
NM |
|
|
NM |
|
|
|
|
|
|
|
|
Allowance / charge-offs |
NM |
|
|
NM |
|
|
NM |
|
|
NM |
|
|
NM |
|
|
|
|
|
|
|
|
NM - Not meaningful |
(a) |
30+ Delinquency % includes all accounts delinquent more than one month and still accruing interest. |
(b) |
1Q15 increase was primarily driven by one relationship. |
(c) |
2Q15 increase was primarily driven by charge-offs in a sub segment of the credit card portfolio which had previously been reserved for. |
FHN ASSET QUALITY: NON-STRATEGIC
Quarterly, Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q15 Changes vs. |
|
2Q15 |
|
|
1Q15 |
|
|
4Q14 |
|
|
3Q14 |
|
|
2Q14 |
|
|
1Q15 |
|
2Q14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Non-Strategic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans ($ millions) |
$2,268 |
|
|
$2,409 |
|
|
$2,527 |
|
|
$2,663 |
|
|
$2,788 |
|
|
(6) |
% |
|
(19) |
% |
|
30+ Delinq. % (a) |
1.67 |
% |
|
1.67 |
% |
|
1.67 |
% |
|
1.73 |
% |
|
1.24 |
% |
|
|
|
|
|
|
|
NPL % (b) |
5.77 |
|
|
5.55 |
|
|
5.37 |
|
|
5.22 |
|
|
4.98 |
|
|
|
|
|
|
|
|
Charge-offs % (qtr. annualized) |
NM |
|
|
0.55 |
|
|
0.85 |
|
|
0.71 |
|
|
0.53 |
|
|
|
|
|
|
|
|
Allowance / loans % |
3.91 |
% |
|
4.25 |
% |
|
4.18 |
% |
|
4.16 |
% |
|
4.01 |
% |
|
|
|
|
|
|
|
Allowance / charge-offs |
NM |
|
|
7.48 |
x |
|
4.79 |
x |
|
5.75 |
x |
|
7.41 |
x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Portfolio Details |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
C&I |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans ($ millions) |
$434 |
|
|
$453 |
|
|
$454 |
|
|
$456 |
|
|
$456 |
|
|
(4) |
% |
|
(5) |
% |
|
30+ Delinq. % (a) |
0.02 |
% |
|
0.08 |
% |
|
0.05 |
% |
|
0.23 |
% |
|
0.02 |
% |
|
|
|
|
|
|
|
NPL % (b) |
3.07 |
|
|
2.68 |
|
|
2.64 |
|
|
2.64 |
|
|
0.58 |
|
|
|
|
|
|
|
|
Charge-offs % (qtr. annualized) |
NM |
|
|
NM |
|
|
NM |
|
|
NM |
|
|
1.99 |
|
|
|
|
|
|
|
|
Allowance / loans % |
1.23 |
% |
|
1.09 |
% |
|
1.10 |
% |
|
1.01 |
% |
|
0.38 |
% |
|
|
|
|
|
|
|
Allowance / charge-offs |
NM |
|
|
NM |
|
|
NM |
|
|
NM |
|
|
0.19 |
x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real Estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans ($ millions) |
$- |
|
|
$1 |
|
|
$5 |
|
|
$5 |
|
|
$5 |
|
|
(100) |
% |
|
(100) |
% |
|
30+ Delinq. % (a) |
- |
% |
|
14.87 |
% |
|
- |
% |
|
- |
% |
|
- |
% |
|
|
|
|
|
|
|
NPL % |
- |
|
|
18.31 |
|
|
17.47 |
|
|
20.01 |
|
|
19.34 |
|
|
|
|
|
|
|
|
Charge-offs % (qtr. annualized) |
NM |
|
|
2.64 |
|
|
6.91 |
|
|
NM |
|
|
NM |
|
|
|
|
|
|
|
|
Allowance / loans % |
7.36 |
% |
|
8.22 |
% |
|
9.25 |
% |
|
9.36 |
% |
|
9.41 |
% |
|
|
|
|
|
|
|
Allowance / charge-offs |
NM |
|
|
1.06 |
x |
|
1.27 |
x |
|
NM |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Real Estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans ($ millions) |
$1,458 |
|
|
$1,565 |
|
|
$1,663 |
|
|
$1,775 |
|
|
$1,885 |
|
|
(7) |
% |
|
(23) |
% |
|
30+ Delinq. % (a) |
2.06 |
% |
|
1.92 |
% |
|
2.17 |
% |
|
1.84 |
% |
|
1.45 |
% |
|
|
|
|
|
|
|
NPL % |
6.03 |
|
|
5.83 |
|
|
5.51 |
|
|
5.40 |
|
|
5.35 |
|
|
|
|
|
|
|
|
Charge-offs % (qtr. annualized) |
NM |
|
|
0.64 |
|
|
0.91 |
|
|
0.98 |
|
|
0.23 |
|
|
|
|
|
|
|
|
Allowance / loans % |
4.14 |
% |
|
4.90 |
% |
|
4.86 |
% |
|
4.79 |
% |
|
4.54 |
% |
|
|
|
|
|
|
|
Allowance / charge-offs |
NM |
|
|
7.36 |
x |
|
5.19 |
x |
|
4.76 |
x |
|
19.65 |
x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Permanent Mortgage |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans ($ millions) |
$365 |
|
|
$379 |
|
|
$393 |
|
|
$415 |
|
|
$427 |
|
|
(4) |
% |
|
(15) |
% |
|
30+ Delinq. % (a) |
2.12 |
% |
|
2.50 |
% |
|
1.40 |
% |
|
2.88 |
% |
|
1.59 |
% |
|
|
|
|
|
|
|
NPL % |
7.92 |
|
|
7.82 |
|
|
7.78 |
|
|
7.13 |
|
|
7.71 |
|
|
|
|
|
|
|
|
Charge-offs % (qtr. annualized) |
0.14 |
|
|
0.59 |
|
|
1.44 |
|
|
0.29 |
|
|
0.15 |
|
|
|
|
|
|
|
|
Allowance / loans % |
6.11 |
% |
|
5.32 |
% |
|
4.83 |
% |
|
4.84 |
% |
|
5.52 |
% |
|
|
|
|
|
|
|
Allowance / charge-offs |
44.22 |
x |
|
8.82 |
x |
|
3.30 |
x |
|
16.57 |
x |
|
35.18 |
x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans ($ millions) |
$11 |
|
|
$11 |
|
|
$12 |
|
|
$12 |
|
|
$15 |
|
|
|
* |
|
(27) |
% |
|
30+ Delinq. % (a) |
1.31 |
% |
|
1.40 |
% |
|
2.48 |
% |
|
2.24 |
% |
|
1.79 |
% |
|
|
|
|
|
|
|
NPL % |
6.86 |
|
|
6.66 |
|
|
6.22 |
|
|
5.38 |
|
|
9.16 |
|
|
|
|
|
|
|
|
Charge-offs % (qtr. annualized) |
5.97 |
|
|
9.24 |
|
|
8.21 |
|
|
6.74 |
|
|
7.81 |
|
|
|
|
|
|
|
|
Allowance / loans % |
4.95 |
% |
|
4.69 |
% |
|
3.43 |
% |
|
4.48 |
% |
|
2.94 |
% |
|
|
|
|
|
|
|
Allowance / charge-offs |
0.81 |
x |
|
0.49 |
x |
|
0.41 |
x |
|
0.63 |
x |
|
0.36 |
x |
|
|
|
|
|
|
|
NM - Not meaningful |
* Amount is less than one percent. |
(a) 30+ Delinquency % includes all accounts delinquent more than one month and still accruing interest. |
(b) 3Q14 increase related to interest deferral elected by an insurance TRUPS. |
|
|
FHN: PORTFOLIO METRICS
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
C&I Portfolio: $9.8 Billion (58.1% of Total Loans) as of June 30, 2015 |
|
|
|
|
|
|
|
|
|
|
% OS |
|
General Corporate, Commercial, and Business Banking Loans |
|
|
|
|
78% |
|
Loans to Mortgage Companies |
|
|
|
|
17% |
|
Trust Preferred Loans |
|
|
|
|
4% |
|
Bank Holding Company Loans |
|
|
|
|
1% |
|
Consumer Real Estate (primarily Home Equity) Portfolio: $4.9
Billion (28.8% of Total Loans)
Origination LTV and FICO for Portfolio as of June 30, 2015 |
Loan-to-Value |
|
(excludes whole loan insurance) |
<=60% |
>60% - <=80% |
>80% - 90% |
|
>90% |
|
FICO score greater than or equal to 740 |
11% |
|
23% |
|
17% |
|
10% |
|
FICO score 720-739 |
1% |
|
4% |
|
4% |
|
3% |
|
FICO score 700-719 |
1% |
|
4% |
|
4% |
|
2% |
|
FICO score 660-699 |
1% |
|
4% |
|
3% |
|
3% |
|
FICO score 620-659 |
1% |
|
1% |
|
1% |
|
1% |
|
FICO score less than 620 |
-% |
|
-% |
|
-% |
|
1% |
|
Origination LTV and FICO for Portfolio - Regional Bank as of June 30, 2015 |
Loan-to-Value |
|
(excludes whole loan insurance) |
<=60% |
>60% - <=80% |
>80% - 90% |
|
>90% |
|
FICO score greater than or equal to 740 |
12% |
|
24% |
|
18% |
|
12% |
|
FICO score 720-739 |
1% |
|
4% |
|
4% |
|
3% |
|
FICO score 700-719 |
1% |
|
3% |
|
3% |
|
2% |
|
FICO score 660-699 |
1% |
|
3% |
|
3% |
|
2% |
|
FICO score 620-659 |
1% |
|
1% |
|
1% |
|
0% |
|
FICO score less than 620 |
-% |
|
-% |
|
-% |
|
1% |
|
Origination LTV and FICO for Portfolio - Non-Strategic as of June 30, 2015 |
Loan-to-Value |
|
(excludes whole loan insurance) |
<=60% |
>60% - <=80% |
>80% - 90% |
|
>90% |
|
FICO score greater than or equal to 740 |
8% |
|
21% |
|
15% |
|
5% |
|
FICO score 720-739 |
2% |
|
6% |
|
6% |
|
2% |
|
FICO score 700-719 |
2% |
|
5% |
|
6% |
|
2% |
|
FICO score 660-699 |
2% |
|
5% |
|
4% |
|
4% |
|
FICO score 620-659 |
-% |
|
1% |
|
1% |
|
1% |
|
FICO score less than 620 |
-% |
|
-% |
|
-% |
|
2% |
|
Consumer Real Estate Portfolio Detail: |
|
|
|
|
|
|
|
|
|
Origination Characteristics |
|
Vintage |
Balances ($B) |
|
W/A Age (mo.) |
|
CLTV |
|
FICO |
% TN |
|
% 1st lien |
|
pre-2003 |
$0.1 |
|
161 |
|
78% |
|
702 |
41% |
|
30% |
|
2003 |
$0.1 |
|
144 |
|
77% |
|
718 |
30% |
|
36% |
|
2004 |
$0.3 |
|
131 |
|
80% |
|
720 |
19% |
|
28% |
|
2005 |
$0.5 |
|
119 |
|
81% |
|
727 |
15% |
|
15% |
|
2006 |
$0.4 |
|
108 |
|
78% |
|
732 |
21% |
|
17% |
|
2007 |
$0.5 |
|
96 |
|
81% |
|
737 |
26% |
|
19% |
|
2008 |
$0.2 |
|
85 |
|
75% |
|
745 |
72% |
|
50% |
|
2009 |
$0.1 |
|
73 |
|
72% |
|
749 |
86% |
|
57% |
|
2010 |
$0.2 |
|
59 |
|
79% |
|
752 |
93% |
|
71% |
|
2011 |
$0.3 |
|
47 |
|
77% |
|
760 |
89% |
|
86% |
|
2012 |
$0.7 |
|
36 |
|
77% |
|
763 |
89% |
|
91% |
|
2013 |
$0.6 |
|
24 |
|
78% |
|
756 |
86% |
|
85% |
|
2014 |
$0.6 |
|
12 |
|
81% |
|
757 |
86% |
|
89% |
|
2015 |
$0.3 |
|
3 |
|
80% |
|
758 |
83% |
|
91% |
|
Total |
$4.9 |
|
65 |
|
79% |
|
746 (a) |
61% |
|
59% |
|
|
|
(a) |
746 average portfolio origination FICO; 741 weighted average portfolio FICO (refreshed). |
FHN NON-GAAP TO GAAP RECONCILIATION
Quarterly, Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars and shares in thousands, except per share data) |
2Q15 |
|
|
1Q15 |
|
|
4Q14 |
|
|
3Q14 |
|
|
2Q14 |
|
Tangible Common Equity (Non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A) Total equity (GAAP) |
$2,517,905 |
|
|
$2,499,257 |
|
|
$2,581,590 |
|
|
$2,611,814 |
|
|
$2,615,275 |
|
Less: Noncontrolling interest (a) |
295,431 |
|
|
295,431 |
|
|
295,431 |
|
|
295,431 |
|
|
295,431 |
|
Less: Preferred stock |
95,624 |
|
|
95,624 |
|
|
95,624 |
|
|
95,624 |
|
|
95,624 |
|
(B) Total common equity |
$2,126,850 |
|
|
$2,108,202 |
|
|
$2,190,535 |
|
|
$2,220,759 |
|
|
$2,224,220 |
|
Less: Intangible assets (GAAP) (b) |
172,854 |
|
|
174,152 |
|
|
175,450 |
|
|
160,987 |
|
|
161,968 |
|
(C) Tangible common equity (Non-GAAP) |
$1,953,996 |
|
|
$1,934,050 |
|
|
$2,015,085 |
|
|
$2,059,772 |
|
|
$2,062,252 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Assets (Non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(D) Total assets (GAAP) |
$25,239,767 |
|
|
$25,715,888 |
|
|
$25,668,187 |
|
|
$23,982,597 |
|
|
$24,218,345 |
|
Less: Intangible assets (GAAP) (b) |
172,854 |
|
|
174,152 |
|
|
175,450 |
|
|
160,987 |
|
|
161,968 |
|
(E) Tangible assets (Non-GAAP) |
$25,066,913 |
|
|
$25,541,736 |
|
|
$25,492,737 |
|
|
$23,821,610 |
|
|
$24,056,377 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Tangible Common Equity (Non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(F) Average total equity (GAAP) |
$2,511,929 |
|
|
$2,607,521 |
|
|
$2,651,729 |
|
|
$2,631,841 |
|
|
$2,558,062 |
|
Less: Average noncontrolling interest (a) |
295,431 |
|
|
295,431 |
|
|
295,431 |
|
|
295,431 |
|
|
295,431 |
|
Less: Average preferred stock |
95,624 |
|
|
95,624 |
|
|
95,624 |
|
|
95,624 |
|
|
95,624 |
|
(G) Total average common equity |
$2,120,874 |
|
|
$2,216,466 |
|
|
$2,260,674 |
|
|
$2,240,786 |
|
|
$2,167,007 |
|
Less: Average intangible assets (GAAP) (b) |
173,486 |
|
|
174,787 |
|
|
165,769 |
|
|
161,467 |
|
|
162,447 |
|
(H) Average tangible common equity (Non-GAAP) |
$1,947,388 |
|
|
$2,041,679 |
|
|
$2,094,905 |
|
|
$2,079,319 |
|
|
$2,004,560 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized Net Income/(Loss) Available to Common Shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(I) Net income/(loss) available to common shareholders (annualized) |
$202,780 |
|
|
$(311,114) |
|
|
$186,904 |
|
|
$182,790 |
|
|
$310,932 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end Shares Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(J) Period-end shares outstanding |
234,021 |
|
|
233,499 |
|
|
234,220 |
|
|
235,249 |
|
|
237,147 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 Common (Non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(K) Tier 1 capital (c) |
(f) |
|
|
(f) |
|
|
$2,813,503 |
|
|
$2,783,147 |
|
|
$2,751,933 |
|
Less: Noncontrolling interest - FTBNA preferred stock (d) |
(f) |
|
|
(f) |
|
|
294,816 |
|
|
294,816 |
|
|
294,816 |
|
Less: Preferred Stock |
(f) |
|
|
(f) |
|
|
95,624 |
|
|
95,624 |
|
|
95,624 |
|
Less: Trust preferred (e) |
(f) |
|
|
(f) |
|
|
200,000 |
|
|
200,000 |
|
|
200,000 |
|
(L) Tier 1 common (Non-GAAP) |
(f) |
|
|
(f) |
|
|
$2,223,063 |
|
|
$2,192,707 |
|
|
$2,161,493 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Weighted Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(M) Risk weighted assets (c) |
(f) |
|
|
(f) |
|
|
$19,452,656 |
|
|
$19,238,109 |
|
|
$19,400,096 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(I)/(H) Return on average tangible common equity (“ROTCE”) (Non-GAAP) |
10.41 |
% |
|
(15.24) |
% |
|
8.92 |
% |
|
8.79 |
% |
|
15.51 |
% |
(I)/(G) Return on common equity (GAAP) |
9.56 |
% |
|
(14.04) |
% |
|
8.27 |
% |
|
8.16 |
% |
|
14.35 |
% |
(C)/(E) Tangible common equity to tangible assets (“TCE/TA”) (Non-GAAP) |
7.80 |
% |
|
7.57 |
% |
|
7.90 |
% |
|
8.65 |
% |
|
8.57 |
% |
(A)/(D) Total equity to total assets (GAAP) |
9.98 |
% |
|
9.72 |
% |
|
10.06 |
% |
|
10.89 |
% |
|
10.80 |
% |
(C)/(J) Tangible book value per common share (Non-GAAP) |
$8.35 |
|
|
$8.28 |
|
|
$8.60 |
|
|
$8.76 |
|
|
$8.70 |
|
(B)/(J) Book value per common share (GAAP) |
$9.09 |
|
|
$9.03 |
|
|
$9.35 |
|
|
$9.44 |
|
|
$9.38 |
|
(L)/(M) Tier 1 common to risk weighted assets (Non-GAAP) |
(f) |
|
|
(f) |
|
|
11.43 |
% |
|
11.40 |
% |
|
11.14 |
% |
(K)/(D) Tier 1 capital to total assets (GAAP) |
(f) |
|
|
(f) |
|
|
10.96 |
% |
|
11.60 |
% |
|
11.36 |
% |
Certain previously reported amounts have been reclassified to agree with current presentation. |
(a) |
Included in Total equity on the Consolidated Balance Sheet. |
(b) |
Includes goodwill and other intangible assets, net of amortization. |
(c) |
Defined by and calculated in conformity with bank regulations. |
(d) |
Represents FTBNA preferred stock included in noncontrolling interest. |
(e) |
Included in Term borrowings on the Consolidated Balance Sheet. |
(f) |
In periods prior to 1Q15, these measures were used to reconcile non-GAAP to GAAP information. |
FHN GLOSSARY OF TERMS
Average Assets for Leverage: The amount of assets
a company uses to calculate the leverage ratio, which includes average total assets less disallowed portions of goodwill, other
intangibles, and deferred tax assets, as well as certain other regulatory adjustments made to tier 1 capital.
Common Equity Tier 1: A measure of a company’s
capital position under U.S. Basel III capital rules first applicable to FHN in 2015, which includes common equity less goodwill,
other intangibles and certain other required regulatory deductions as defined in those rules. Common Equity Tier 1 capital under
U.S. Basel III in 2015 is not the same as the non-regulatory Tier 1 Common capital commonly used prior to 2015; comparisons between
the two are not meaningful.
Core Businesses: Management considers regional
banking, fixed income, and corporate as FHN’s core businesses. Non-strategic has significant legacy assets and operations
that are being wound down.
Fully Taxable Equivalent (“FTE”): Reflects
the amount of tax-exempt income adjusted to a level that would yield the same after-tax income had that income been subject to
taxation.
Tier 1 Capital Ratio: Ratio consisting of shareholders’
equity adjusted for certain unrealized gains/(losses) on available-for-sale securities, reduced by goodwill, certain other intangible
assets, the disallowable portion of mortgage servicing rights and other disallowed assets divided by risk-adjusted assets. The
components of Tier 1 capital, including the risk-adjustment of assets, changed significantly for FHN beginning in 2015 so that
comparisons of a Tier 1 capital ratio after 2014 with a ratio prior to 2015 may not be meaningful.
Tier 1 Common: A measure of a company’s
capital position associated with U.S. capital rules applicable to FHN prior to 2015, which includes Tier 1 capital as then defined
less preferred stock amounts.
Troubled Debt Restructuring (“TDR”):
A restructuring of debt whereby a creditor for economic or legal reasons related to the borrower’s financial difficulties
grants a concession to the borrower that it would not otherwise consider. Such concession is granted in an attempt to protect as
much of the creditor’s investment as possible by increasing the probability of repayment.
Key Ratios
Return on Average Assets: Ratio is annualized
net income to average total assets.
Return on Average Common Equity: Ratio is annualized
net income available to common shareholders to average common equity.
Return on Average Tangible Common Equity: Ratio
is annualized net income available to common shareholders to average tangible common equity.
Fee Income to Total Revenue: Ratio is fee income
excluding securities gains/(losses) to total revenue excluding securities gains/(losses).
Efficiency Ratio: Ratio is noninterest expense
to total revenue excluding securities gains/(losses).
Leverage Ratio: Ratio is tier 1 capital to average
assets for leverage.
Asset Quality - Consolidated Key Ratios
NPL %: Ratio is nonperforming loans in the loan
portfolio to total period-end loans.
NPA %: Ratio is nonperforming assets related
to the loan portfolio to total period-end loans plus foreclosed real estate and other assets.
Net charge-offs %: Ratio is annualized net charge-offs
to total average loans.
Allowance / loans: Ratio is allowance for loan
losses to total period-end loans.
Allowance / NPL: Ratio is allowance for loan
losses to nonperforming loans in the loan portfolio.
Allowance / NPA: Ratio is allowance for loan
losses to nonperforming assets related to the loan portfolio.
Allowance / charge-offs: Ratio is allowance
for loan losses to annualized net charge-offs.
First Horizon National Corporation Second Quarter 2015 Earnings July 17, 2015
2 ▪ Portions of this presentation use non - GAAP financial information. Each of those portions is so noted, and a reconciliation of that non - GAAP information to comparable GAAP information is provided in a footnote or in the appendix at the end of this presentation. ▪ This presentation contains forward - looking statements, which may include guidance, involving significant risks and uncertainties which will be identified by words such as “ believe”,“expect”,“anticipate”,“intend”,“estimate ”, “ should”,“is likely”,“will”,“going forward” and other expressions that indicate future events and trends and may be followed by or reference cautionary statements. A number of factors could cause actual results to differ materially from those in the forward - looking information. These factors are outlined in our recent earnings and other press releases and in more detail in the most current 10 - Q and 10 - K. FHN disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward - looking statements included herein or therein to reflect future events or developments.
Building Franchise Value Executing “Blue Chip” Priorities ▪ Being easy to do business with ▪ Providing differentiated customer service ▪ Using the Bonefish to drive profitability 3
4 Numbers may not add to total due to rounding. All Non - GAAP numbers are reconciled in the appendix. 1 ROTCE is Non - GAAP. 2 Consolidated PPNR excludes a ~$47mm insurance recovery in 2Q14. This number is Non - GAAP. Second Quarter 2015 Accomplishments 2Q14 - 2Q15 Regional Bank Loan Growth 2Q15 Average Regional Bank Commercial Loans 21% 13% 12% 11% 18% 6% 5% 3% West TN Loans to Mortgage Companies 115% ▪ Earnings per share at $0.22 ▪ ROTCE at 10.4% 1 ▪ NIM up 18 bps linked quarter; NII up 6% linked quarter and year over year ▪ Consolidated revenues up 5% year over year ▪ Consolidated 2 and Regional Bank Pre - Provision Net Revenue (PPNR) up 4% and 7% year over year ▪ Regional Bank average loan growth of 16% year over year ▪ Regional Bank average core deposits up 13% year over year ▪ Revenue per FTE in Regional Bank up 8% year over year ▪ Fixed income product average daily revenue at $729,000 vs $642,000 a year ago ▪ DFAST results disclosed in 2Q15; capital position remains strong Corporate 9% CRE 13% ABL 15% Loans to Mortgage Companies 16% Commercial 34% Healthcare 3% Correspondent 2% East TN Middle TN Mid - Atlantic Commercial PC/WM ABL CRE Markets: Lending Areas: Energy 1% Specialty Lending Areas
FINANCIAL RESULTS 5
+10% 2Q15 Consolidated Financial Results 6 Net Interest Income Fee Income Expense NIAC Excluding Litigation Charge/Insurance Recovery 1 $ in millions, except EPS Financial Results 2Q15 $167 Loan Loss Provision $130 $218 $2 $51 $0.22 2Q15 vs +6% +3% +34% - 60% - 35% - 33% 1Q15 $157 $130 $376 $5 $(77) $(0.33) 2Q14 $157 $127 $163 $5 $78 $0.33 1Q15 +6% * - 42% - 60% NM NM 2Q14 Actuals ▪ Adjusted PPNR 2 up 8% linked quarter and 4% year over year ▪ Revenue up 4% linked quarter and 5% year over year ▪ Net interest income up 6% linked quarter and year over year ▪ Total average loans up 4% linked quarter and 9% year over year ▪ Total average core deposits up 2% linked quarter and 16% year over year ▪ Loan loss provision of $2mm with NCOs of $9mm in 2Q15 vs $5mm of provision and $9mm of NCOs in 1Q15 ▪ Common Equity Tier 1 (CET1) of 10.4% 3 Net Income Available to Common Shareholders (NIAC) Expense Excluding Litigation Charge/Insurance Recovery 1 $218 EPS $51 EPS Excluding Litigation Charge/Insurance Recovery 1 $0.22 Adjusted Financial Results $47 $0.20 $214 $42 $0.18 $210 +4% +7% +2% +21% +22% Numbers may not add to total due to rounding. * Amount is less than one percent. All Non - GAAP numbers are reconciled in the appe ndix. 1 Expense , NIAC and EPS excluding litigation charge/insurance recovery are Non - GAAP numbers. 2 PPNR excludes the ~$163mm in legal matters in 1Q15 and ~$ 47mm insurance recovery in 2Q14. These are Non - GAAP numbers. 3 2Q15 Common Equity Tier 1 is an estimate.
2Q15 Segment Highlights 7 Drivers and Impacts Net Income 1 $ in millions, except EPS 2Q15 Per Share Impact 2 Regional Banking Fixed Income Corporate 1 Non - Strategic Total 1 1Q15 $48 $7 $(18) $(114) $(77) 2Q14 $47 $31 $(8) $8 $78 2Q15 $46 $6 $(16) $15 $51 $0.20 $0.03 $(0.07) $0.06 $0.22 ▪ Fixed income product ADR of $729k in 2Q15 vs $877k in 1Q15 ▪ Expenses down 6% linked quarter ▪ 2Q14 includes the impact of a $47mm expense reversal associated with a lawsuit from 2011 ▪ 1Q15 included $163mm expense related to legal matters ▪ 2Q15 included $2.7mm pre - tax gain on sale of property ▪ 2Q15 loan loss provision of $(15)mm vs $0.1mm in 1Q15 ▪ Average loans up 16% year over year and 6% linked quarter ▪ PPNR up 7% year over year and 11% linked quarter ▪ NII up 12% year over year and 7% linked quarter ▪ 2Q15 loan loss provision of $17mm vs $5mm in 1Q15 ▪ Impacted by lengthening of loss emergence period and loan growth Numbers may not add to total due to rounding. 1 Corporate and Consolidated show net income available to common, which reflects $3mm of noncontrolling interest and $1.6mm of pre ferred stock dividends in each quarter. 2 Segment EPS impacts are Non - GAAP numbers and reconciled in the table. EPS impacts are calculated using the 2Q15 net income colum n divided by the 235 million diluted shares outstanding.
Regional Banking Financial Results Solid Revenue Growth 8 Net Interest Income Fee Income Expense $ in millions Financial Results 2Q15 $166 Loan Loss Provision Pre - Provision Net Revenue $66 $144 $88 $17 2Q15 vs +12% * +8% +7% NM 1Q15 $154 $60 $136 $79 $5 2Q14 $149 $66 $133 $82 $8 1Q15 +7% +10% +6% +11% NM 2Q14 Actuals ▪ Revenues up 8% linked quarter and year over year ▪ NII up 7% linked quarter and 12% year over year ▪ Fee income up 10% linked quarter primarily due to seasonal rebound and higher activity in deposit transactions, trust and brokerage fees ▪ Average loans increased 6% linked quarter and 16% year over year ▪ Average core deposits up 3% linked quarter and up 13% year over year ▪ Loan loss provision up due to loan growth, an extension of the loss emergence period and reserve associated with single exposure ▪ Efficiency ratio improvement of 109 bps linked quarter ▪ Expenses up 6% linked quarter, primarily related to personnel incentive compensation adjustments ▪ 2Q15 net charge - offs of $10mm, or annualized 0.29% of average loans Numbers may not add to total due to rounding. * Amount is less than 1%. Net Income $46 $48 $47 - 4% - 4% Total Average Loans ($B) Total Average Deposits ($B) $14 $14 $12 +16% +6% $17 $17 $15 +12% +3%
$3.39B $3.42B $0.76B $0.75B $1.88B $1.96B $2.11B $2.05B $1.04B $1.61B $1.24B $1.31B $1.44B $1.47B $1.66B $1.76B 1Q15 2Q15 $0 $3 $6 $9 $12 $15 9 Profitable Growth Opportunities: Regional Banking Double Digit Loan Growth Year over Year Regional Banking Loan Growth by Lending Area 1 ▪ Regional Banking average loan growth of 16% year over year and 6% linked quarter ▪ Continued growth in specialty lending areas ▪ Asset - based lending growth driven by consumer finance and factoring ▪ Private Client/Wealth Management increase from adding RMs in growth markets ▪ Commercial real estate increases across markets in multi - family, hospitality, retail and other property types such as student housing and assisted living facilities as well as funding up of commitments ▪ Loans to mortgage companies increase includes strong purchase and refi activity +6% $15B 5% 4% 2% Loans to Mortgage Companies PC/WM CRE Regional Bank Areas of Linked Quarter Loan Growth 1 Commercial Business PC/WM Retail Loans to Mortgage Cos CRE ABL Other Specialty ABL 55% 1 Average Regional Banking loan growth from 1Q15 to 2Q15.
10 $0 $1 $2 $3 $0 $250 $500 $750 2008 2009 2010 2011¹ 2012 2013 2014¹ 2015² Revenue Expense Column1 ADR Fixed Income - FTN Financial Financial Results $750mm Fixed Income Product Revenue and Expense ▪ Fixed income product average daily revenue (ADR) at $729k in 2Q15 ▪ 1H15 ADR up over prior year across all products (agencies, mortgages, corporates & municipals) ▪ Largest increase over prior year was in municipals, driven in part by strategic focus on municipal product Numbers may not add to total due to rounding. 1 2011 and 2014 exclude ~$37mm of expense associated with a legal settlement and the impact of a ~$47mm insurance recovery from the ~$321mm and ~$147mm in expense reported in those periods. These are Non - GAAP numbers. 2 1H15 annualized. 3 2Q14 noninterest expense includes the impact of a ~$47mm insurance recovery. $3mm Left Axis: Right Axis: NII Fee Income $ in millions, except ADR Financial Results 2Q15 $4 Net Income $56 $6 2 Q15 vs +66% +18% - 81% 1Q15 $4 $62 $7 2 Q14 $3 $48 $31 1Q15 - 1% - 9% - 16% 2 Q14 Actuals Expense 3 $51 NM $55 $0 - 6% ADR $729k $877k $642k +14% - 17%
11 Net Interest Income Sensitivity Impact 1 NII and Net Interest Margin Balance Sheet Positioned to Benefit from Rising Rates +2.5% $16mm +3.8% +$25mm +6.2% +$40mm +11.3% +$73mm 0% 3% 6% 9% 12% +25bps +50bps +100bps +200bps ▪ NIM up 18 bps linked quarter to 2.92% ▪ NII up $10mm or 6% linked quarter ▪ Average core deposits up 2% linked quarter, 16% YOY ▪ Regional Banking average deposit rate paid of 13bps in 2Q15 vs 14 bps in 1Q15 ▪ Floating rate loans comprise 68% of loan portfolio vs fixed rate loans at 32% ▪ Attractive and stable low - cost funding mix in Regional Banking with 58% DDA and interest checking deposits Average Deposit Growth 12% 2Q15 $167 2.92% NII and NIM Change Drivers NII NIM ($ in millions) 1Q15 $157 2.74% Interest Bearing Cash/Fed Funds Sold Loan Fees & Cash Basis Income More Days in Quarter Commercial Loan Yields Commercial Loan Volume +7% +3% Linked Quarter: Year Over Year: Consumer Commercial Commercial Other $3.5 6bp - 2bp $6.8 3bp $1.1 - $1.1 11bp - - - $0.5 - +23% Numbers may not add to total due to rounding. 1 NII sensitivity analysis uses FHN’s balance sheet as of 2Q15. Bps impact assumes increase in Fed Funds rate. Non - Strategic is interest rate neutral, thus nearly all the sensitivity impact would be allocated to the Core Businesses. Consumer 0%
Improving Productivity and Efficiency ▪ Continuing wind - down of Non - Strategic segment ▪ Legal expenses down 27% in 1H15 vs 1H14 ▪ Streamlining end - to - end processes ▪ Committed savings of ~$4mm from IT and loan operations by end of 2015 ▪ Reducing corporate real estate footprint ▪ Decreased square footage per FTE by 24% from 2014 to 2015 ▪ Sold non - strategic property for $2.7mm gain in 2Q15 ▪ Right - sizing branch network as consumer usage shifts to FHN’s expanded digital banking platforms ▪ Reduced financial centers by 3 branches from 1Q15 to 2Q15 Investing in Future Growth Executing Efficiency Opportunities ▪ Continuing investments in growth markets such as Mid - Atlantic, Nashville, Houston ▪ Build out of Houston market includes 5 strategic hires over the last year ▪ Investing in technology and digital platforms ▪ Compensation plan enhancements in revenue producing areas 12
13 Non - Performing Assets $0 $100 $200 $300 $400 2Q14 3Q14 4Q14 1Q15 2Q15 NPLs NPLs Held for Sale ORE $400mm Net Charge - Offs Asset Quality Trends Stable to Improving Credit Trends Reserves 1.00% 1.25% 1.50% 1.75% 2.00% $200 $220 $240 $260 2Q14 3Q14 4Q14 1Q15 2Q15 Reserves $ Reserves / Loans % $260mm 0.00% 0.13% 0.25% 0.38% 0.50% $0 $5 $10 $15 2Q14 3Q14 4Q14 1Q15 2Q15 NCOs $ Provision $ NCO %¹ $15mm ▪ Net charge - offs of $9mm in 2Q15, steady with 1Q15 and 2Q14 ▪ Annualized net charge - off ratio improvement of 2 bps to 0.21% from 1Q15 ▪ NPL levels at $209mm, down 30% year over year ▪ Commercial NPLs down 11% year over year ▪ Non - strategic loans declined 5% linked quarter, down 18% year over year Numbers may not add to total due to rounding. 1 Net charge - off % is annualized.
14 2Q15 Consolidated Long - Term Targets ROTCE 1 10.4% 15.0 – 20.0% ROA 1 0.87% 1.25 - 1.45% NIM 1 2.92% 3.50 - 4.00% CET1 10.4% 8.0 – 9.0% NCO / Average Loans 1 0.21% 0.30 - 0.70% Fee Income / Revenue 44% 40 - 50% Efficiency Ratio 74% 60 - 65% 1 ROTCE, ROA, NIM, and NCO / Average Loans are annualized. ROTCE is a Non - GAAP number and reconciled in the appendix. Building Long - Term Earnings Power: Bonefish Targets Focused on Growing Our Company Selectively and Profitably While Positioning Our Balance Sheet for Sustainable, Higher Returns in the Long Term Annualized Net Charge-Offs 0.30% - 0.70% % Fee Income 40% - 50% Efficiency Ratio 60% - 65% Return on Tangible Common Equity 15% - 20% Equity / Assets Risk Adjusted Margin Total Assets Earning Assets Pre-tax Income Tax Rate Common Equity Tier 1 8% - 9% Return on Assets 1.25% - 1.45% Net Interest Margin 3.50% - 4.00%
15 Closing the Gap to Bonefish Targets Building a Foundation for Long - Term Earnings Power Current ROTCE / EPS Rise in Interest Rates 1 Target Bonefish ROTCE / EPS Growth Opportunities Economic Profit Improvement Optimize/ Redeploy Capital Continued Efficiencies ▪ Non - Strategic W ind - Down ▪ Infrastructure Reductions ▪ Established Market Profitability / Growth ▪ Product/ Relationship Profitability Improvement ▪ Sales Productivity Improvement ▪ Process Improvements ▪ Branch Network Rationalization ▪ Dividends ▪ Share Buybacks ▪ M&A ▪ Latent I ncome E mbedded in Asset - Sensitive B alance S heet ▪ Specialty Lending ▪ Mid - Atlantic ▪ Middle TN ▪ Houston ▪ Wealth / Investments ▪ Municipals (FTN Financial) 0.5% to 1.0% 1.0 % to 1.5% 1 .0% to 1.5% 1.0 % to 1 .5 % 1.0% to 2.5% 3.0 % to 3.8 % ▪ Latent Income Embedded in Fixed Income Platform Capacity ▪ ADR at $ 1.0 - $1.5mm Increased Fixed Income Activity 1 Rise in interest rates represents cumulative growth rate in net interest income over a 3 - year strategic time horizon. Chart illustrates a quantified path to long - term goals; it contains no forecasts.
16 Building a Foundation for Attractive Long - Term Earnings Power ▪ Proven execution capabilities ▪ Unique size, scope, and strengths ▪ Focused on efficiency, productivity, economic profitability, and growth opportunities ▪ Organizational alignment on the path to achieving long - term bonefish profitability ▪ Breadth and depth of talent that will be able to profitably run and grow the company Successfully Executing on Key Priorities FHN is Well Positioned for Attractive Long - Term Earnings Power
APPENDIX 17
Notable Items 18 Impact to EPS 2 After - Tax Amount 1 Notable Item Pre - Tax Amount Held - for - Sale (Primarily NPL) Portfolio Valuation Adjustment $5.5mm $0.02 $8.2mm Litigation Expense Recovery $31.4mm $0.13 $47.1mm Gains on Sales of Held - for - Sale Loans in Non - Strategic Portfolio $25.2mm $0.11 $39.7mm Loss Accruals Related to Legal Matters $(31.5)mm $(0.13) $(50.0)mm Litigation Expense Recovery $9.5mm $0.04 $15.0mm 3Q14 4Q14 $(35.0)mm $(22.0)mm $(0.09) Net Loss Accruals Related to Legal Matters 1Q15 None 2Q15 Agreement in principle with DOJ/HUD to settle potential claims on FHA loans $(162.5)mm $(124.1)mm $(0.51) 2Q14 None Refer to the financial supplement for further variance trend analysis. 1 After - tax impact assumes a tax rate of ~33% in 2Q14, ~37% in 3Q14, and ~24% in 1Q15,. 2 EPS impact calculated by dividing the after - tax impact by the 237mm diluted shares outstanding in 2Q14 and 3Q14. 1Q15 EPS impact is calculated by dividing the after - tax impact by the 235mm diluted shares FHN would have reported assuming net income available to common instead of net loss available to common .
19 2Q15 Credit Quality Summary by Portfolio Numbers may not add to total due to rounding. Data as of 2Q15. NM: Not meaningful. 1 Credit card, Permanent Mortgage, and Other. 2 Credit card, OTC, and Other Consumer. 3 Net charge - offs are annualized. 4 Exercised clean - up calls on jumbo securitizations in 1Q13, 3Q12, 2Q11, and 4Q10, which are now on balance sheet in the Corporate segment. ($ in millions) CRE HE & HELOC Other 1 Total Permanent Mortgage Commercial (C&I & Other) CRE HE & HELOC Permanent Mortgage Other 2 Total Period End Loans $9,398 $1,400 $3,413 $345 $14,556 $113 $434 $0 $1,458 $365 $11 $16,937 30+ Delinquency 0.08% 0.23% 0.47% 1.18% 0.21% 2.51% 0.02% NM 2.06% 2.12% 1.31% 0.42% Dollars $8 $3 $16 $4 $31 $3 $0 $0 $30 $8 $0 $71 NPL % 0.32% 0.84% 0.78% 0.14% 0.47% 2.72% 3.07% NM 6.03% 7.92% 6.86% 1.20% Dollars $30 $12 $27 $0 $69 $3 $13 $0 $88 $29 $1 $203 Net Charge-offs 3 % 0.18% 0.22% 0.08% 5.57% 0.29% NM NM NM NM 0.14% 5.97% 0.21% Dollars $4 $1 $1 $5 $10 NM $0 $0 -$2 $0 $0 $9 Allowance $73 $21 $25 $13 $133 NM $5 $0 $60 $22 $1 $221 Allowance / Loans % 0.78% 1.53% 0.73% 3.72% 0.91% NM 1.23% 7.36% 4.14% 6.11% 4.95% 1.31% Allowance / Charge-offs 4.48x 7.22x 9.73x 0.66x 3.21x NM NM NM NM 44.22x 0.81x 6.15x Regional Banking Corporate 4 Non-Strategic Commercial (C&I & Other)
Construction 33% Land 3% Mini - Perm/Non - Construction 64% 20 C&I and CRE Portfolio Detail $1.1 $1.0 $1.2 $1.6 $1.8 $0.7 $0.9 $0.9 $1.0 $1.6 $0.0 $0.5 $1.0 $1.5 $2.0 2Q14 3Q14 4Q14 1Q15 2Q15 Period End Average ▪ $9.8B C&I portfolio , diversified by industry, managed primarily in Regional Banking ▪ $1.4B CRE portfolio, comprising 8% of period - end consolidated loans ▪ Commercial (C&I and CRE) net charge - offs were $5mm for the quarter ▪ Charge - offs were $5.9mm with recoveries of $1.1mm Retail 24% Multi - Family 32% Office 13% Hospitality 11% Industrial 11% CRE: Loan Type CRE: Collateral Type C&I: Loans to Mortgage Companies Data as of 2 Q15. Numbers may not add to total due to rounding. $2.0B
21 Core Banking Customers TN 61% CA 8% VA 3% GA 3% Other 25% Consumer Portfolio Overview $1.6 $0.7 $0.0 $0.5 $1.0 $1.5 $2.0 In Draw In Repayment HELOC Draw vs Repayment Balances Percent of Home Equity Portfolio: Months Left in Draw Period 21% 17% 15% 8% 5% 34% 0% 5% 10% 15% 20% 25% 30% 35% 40% 0-12 13-24 25-36 37-48 49-60 >60 Home Equity Portfolio Characteristics Home Equity Geographic Distribution 19% 21% 25% 28% 27% 15% 18% 21% 24% 27% 30% $0.0 $0.5 $1.0 $1.5 $2.0 2Q14 3Q14 4Q14 1Q15 2Q15 Period End Balance Constant Pre-Payment Rate (Right Axis) Non - Strategic Consumer Real Estate Run - Off $2.0B $2.0B First Second Total Balance $2.9B $2.0B $4.9B Original FICO 753 736 746 Refreshed FICO 753 724 741 Original CLTV 77% 81% 79% Full Doc 93% 74% 85% Owner Occupied 94% 95% 94% HELOCs $0.6B $1.6B $2.3B Weighted Average HELOC Utilization 46% 56% 54% Data as of 2Q15. Numbers may not add to total due to rounding.
$0 $150 $300 2Q14 3Q14 4Q14 1Q15 2Q15 GSE New Requests Other New Requests Resolved Pipeline 22 Agency & Non - Agency Update Repurchase Resolution Agreements with Both GSEs Total Pipeline of Repurchase Requests 1 $300mm Mortgage Repurchase Reserve Other Whole Loan Sales and Non - Agency ▪ Represent 51% of all active repurchase/make whole requests in 2Q15 pipeline ▪ Some non - Agency FHN loans were bundled with other companies’ loans and securitized by the purchasers ▪ A trustee for a bundler has commenced a legal action seeking repurchase of FHN loans ▪ Certain purchasers have requested indemnity related to FHN loans included in their securitizations ▪ Loan file review process regarding certain bundled FHN loans has been initiated ▪ Net Realized Losses of $0 in 2Q15 due to ~$3mm in mortgage insurance rescission recoveries ($ in millions) 2Q143Q144Q141Q152Q15 Beginning Balance $145 $141 $125 $119 $116 Net Realized Losses $(4) $(13) $(6) $(3) $0 Provision $0 $(4) $0 $0 $0 Loan Sales $0 $2 $0 $0 $0 Ending Balance $141 $125 $119 $116 $116 Data as of 2Q15. Numbers may not add to total due to rounding. 1 Based on UPB. The pipeline represents active investor claims and mortgage insurance (MI) cancellations under review, both of whi ch could occur on the same loan. Excludes MI cancellation notices that have been reviewed and coverage has been lost. MI cancell ati ons that have resulted in lost coverage are included in management’s assessment of the adequacy of repurchase reserves. 2Q14, 3Q14, 4Q14, 1Q15, and 2Q15 pipeline includes $6.5mm, $4.8mm, $4.2mm, $5 .0mm and $1.3mm in other claims, respectively, that pose no risk to the repurchase reserve but require formal acknowledgment with Fannie.
FH Proprietary Securitizations Litigation Certificate Breakdown Paid Off 65% Performing UPB 24% 60D+ Delinquent ³ 4% Cumulative Loss 7% 23 $806mm ($ in millions) Deal FHASI 2007-AR2 1 (Schwab) Senior $50.0 $33.6 $14.0 $12.7 $1.4 $2.4 FHAMS 2006-FA6 (FDIC Alabama) Senior $11.1 $3.7 $5.9 $5.0 $0.9 $1.5 FHAMS 2006-FA6 (FDIC Alabama) Senior $15.2 $5.3 $8.6 $7.0 $1.6 $1.3 FHAMS 2006-FA6 (TN Retirement Indemnification) Senior $46.2 $40.4 $4.6 $3.8 $0.8 $1.1 FHAMS 2006-FA7 (FDIC Alabama) Senior $20.7 $7.0 $10.8 $9.0 $1.8 $2.8 FHAMS 2007-FA4 1 (FDIC Alabama) Senior $14.4 $4.4 $7.9 $6.5 $1.4 $2.1 FHAMS 2007-FA1 (FDIC New York) Senior $44.5 $15.6 $22.2 $18.5 $3.8 $6.6 FHAMS 2007-FA2 (FDIC New York) Senior $34.9 $13.0 $17.2 $14.2 $2.9 $4.7 FHAMS 2005-FA8 (FHLB Indemnification) Senior $100.0 $80.5 $18.7 $16.8 $2.0 $0.7 FHAMS 2007-FA3 (MetLife Indemnification) Senior $103.0 $62.4 $31.7 $25.9 $5.8 $8.8 FHAMS 2005-FA10 2 (Royal Park Indemnification) Senior $100.0 $68.1 $27.6 $24.2 $3.4 $4.4 FHAMS 2006-FA2 1 (Royal Park Indemnification) Senior $30.0 $23.7 $5.1 $4.3 $0.7 $1.2 FHAMS 2005-FA9 (Integra REC Indemnification) Junior $2.3 $0.1 $0.0 $0.0 $0.0 $2.2 FHAMS 2006-FA8 (Integra REC Indemnification) Senior $101.5 $64.2 $29.6 $25.4 $4.1 $7.8 FHAMS 2006-FA8 (TN Retirement Indemnification) Senior $100.0 $77.8 $17.6 $15.1 $2.5 $4.7 FHASI 2006-AA8 (TN Retirement Indemnification) Senior $32.5 $23.1 $7.6 $5.8 $1.8 $1.9 Total $806.2 $523.0 $229.1 $194.2 $34.8 $54.2 Cumulative Loss Certificate Original UPB Paid Off Current UPB Performing UPB 60D+ Delinquent Numbers and percentages may not add to total due to rounding. Data source: June 2015 Trustee Reports. 1 The complainants only purchased a portion of these tranches. Original UPB estimated based on the purchase price stated in the co mplaints. All other metrics prorated based on the ratio of purchase price to the total original UPB of the entire tranche. 2 Royal Park is asking for indemnification on $100mm of the $190mm tranche as stated in the indemnification request. 3 60D+ Delinquent defined as a delinquency status of 60 days or more and also bankruptcies, foreclosures and REO in such status for 60 days or more.
Reconciliation to GAAP Financials 24 Slides in this presentation use non - GAAP information of return on tangible common equity, as well as expenses, pre - provision net revenue, and net income excluding certain charges/recoveries and various ratios using those measures. That information is not presented according to generally accepted accounting principles (GAAP ) and is reconciled to GAAP information below. Numbers may not add to total due to rounding. 1 Tax rates/assumed tax rates of ~28% in 2Q15, ~32% in 1Q15, and ~25% in 2Q14. ($ in millions) 2Q15 Changes vs Adjusted Consolidated Noninterest Expense 2Q15 1Q15 2Q14 1Q15 2Q14 Consolidated Noninterest Expense (GAAP) $218 $376 $163 -42% 34% Less Litigation Charge/Insurance Recovery (GAAP) $163 -$47 Adjusted Consolidated Noninterest Expense (Non-GAAP) $218 $214 $210 2% 4% Adjusted Consolidated PPNR Consolidated PPNR (GAAP) $79 -$90 $122 NM -36% Plus: 1Q15 Litigation Expense (GAAP) $163 Less: 2Q14 Insurance Recovery (GAAP) $47 Adjusted Consolidated PPNR (Non-GAAP) $79 $73 $75 8% 4% Net Income Available to Common/EPS Excluding Litigation Charge/Insurance Recovery Consolidated Pre-tax Income/Loss (GAAP) $77 -$95 $116 Plus: Litigation Charge/Insurance Recovery (GAAP) $163 -$47 Adjusted Consolidated Pre-tax Income (Non-GAAP) $77 $68 $68 $22 $22 $17 $55 $46 $52 $3 $3 $3 $2 $2 $2 Adjusted Net Income Available to Common Shareholders (Non-GAAP) $51 $42 $47 Diluted Shares/Assumed Diluted Shares with Net Income Instead of Net Loss (Non-GAAP) 235 235 237 $0.22 $0.18 $0.20 22% 10% Return On Tangible Common Equity Average Total Equity (GAAP) $2,512 Less: Average Noncontrolling Interest (GAAP) $295 Less: Preferred Stock (GAAP) $96 Average Common Equity (GAAP) $2,121 Less: Average Intangible Assets (GAAP) $173 Average Tangible Common Equity (Non-GAAP) $1,947 Net Income Available to Common (GAAP) $51 Annualized Return on Average Tangible Common Equity (Non-GAAP) 10.4% Less: Net Income Attributable to Noncontrolling Interest (GAAP) Less: Preferred Stock Dividends (GAAP) Less: Adjusted Tax 1 (Non-GAAP) Adjusted Net Income Excluding Litigation Charge/Insurance Recovery (Non-GAAP) Earnings Per Share Excluding Litigation Charge (Non-GAAP)
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