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): April 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.) |
|
|
|
165 MADISON AVENUE |
|
38103 |
MEMPHIS, TENNESSEE |
|
(Zip Code) |
(Address of principal executive office) |
|
|
Registrants 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:
¨ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ |
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 99.2 is a copy of First Horizon National Corporation Investor Slide Presentation for the quarter ended March 31, 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 2.02. Results of Operations and Financial Condition.
ITEM 8.01. Other Events.
Filed as Exhibit 99.1 is a copy of the First Horizon National Corporation Financial Supplement for the quarter ended March 31, 2015, which was released today.
The exhibit speaks as of the date thereof and First Horizon does not assume any obligation to update in the future the information therein.
ITEM 9.01. Financial Statements and Exhibits.
|
|
|
Exhibit # |
|
Description |
|
|
99.1
|
|
First Horizon National Corporation Financial Supplement for the quarter ended March 31, 2015. |
|
|
99.2 |
|
First Horizon National Corporation Investor Slide Presentation for the quarter ended March 31, 2015. |
Exhibit 99.2 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 Horizons previous or future filings under the Securities Act of 1933, as amended, or the Exchange Act.
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) |
|
|
Date: April 17, 2015 |
|
By: /s/ William C. Losch III |
|
|
William C. Losch III |
|
|
Executive Vice President and Chief Financial Officer |
EXHIBIT INDEX
|
|
|
Exhibit # |
|
Description |
|
|
99.1 |
|
First Horizon National Corporation Financial Supplement for the quarter ended March 31, 2015. |
99.2 |
|
First Horizon National Corporation Investor Slide Presentation for the quarter ended March 31, 2015. |
Exhibit 99.2 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 Horizons previous or future filings under the Securities Act of 1933, as amended, or the Exchange Act.
Exhibit 99.1
FIRST 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 |
|
|
|
|
|
|
|
|
|
|
|
Page |
|
|
|
|
|
|
First Horizon National Corporation Segment Structure |
|
|
3 |
|
|
|
|
|
|
Performance Highlights |
|
|
4 |
|
|
|
|
|
|
Consolidated Results |
|
|
|
|
|
|
Income Statement |
|
|
|
|
|
|
Income Statement |
|
|
6 |
|
|
|
Other Income and Other Expense |
|
|
7 |
|
|
|
Balance Sheet |
|
|
|
|
|
|
Period End Balance Sheet |
|
|
8 |
|
|
|
Average Balance Sheet |
|
|
9 |
|
|
|
Net Interest Income |
|
|
10 |
|
|
|
Average Balance Sheet: Yields and Rates |
|
|
11 |
|
|
|
|
|
|
Capital Highlights |
|
|
12 |
|
|
|
|
|
|
Business Segment Detail |
|
|
|
|
|
|
Segment Highlights |
|
|
13 |
|
|
|
Regional Banking |
|
|
14 |
|
|
|
Capital Markets and Corporate |
|
|
15 |
|
|
|
Non-Strategic |
|
|
16 |
|
|
|
|
|
|
Asset Quality |
|
|
|
|
|
|
Asset Quality: Consolidated |
|
|
17 |
|
|
|
Asset Quality: Regional Banking and Corporate |
|
|
19 |
|
|
|
Asset Quality: Non-Strategic |
|
|
20 |
|
|
|
Portfolio Metrics |
|
|
21 |
|
|
|
|
|
|
Non-GAAP to GAAP Reconciliation |
|
|
22 |
|
|
|
|
|
|
Glossary of Terms |
|
|
23 |
|
|
|
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 Corporations
(FHN) most recent press release, as well as critical accounting estimates and other factors described in FHNs 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
Certain ratios are included in this financial supplement that are non-GAAP, meaning they are not presented in accordance with generally
accepted accounting principles (GAAP) in the U.S. FHNs management believes such ratios are relevant to understanding the capital position and results of the Company. The non-GAAP ratios presented in this financial supplement are
tangible common equity (TCE) to tangible assets (TA), tangible book value per common share, tier 1 common to risk weighted assets (RWA) (for periods prior to first quarter 2015), pre-tax pre-provision net revenue
(PPNR), net income available to common shareholders excluding litigation charges, and diluted earnings per share (EPS) excluding litigation charges. These ratios are reported to FHNs management and Board of
Directors through various internal reports. Additionally, disclosure of non-GAAP capital ratios provides a meaningful base for comparability to other financial institutions as demonstrated by their use by the various banking
regulators in reviewing the capital adequacy of financial institutions. Non-GAAP measures are not formally defined by GAAP or codified in currently effective federal banking regulations, and other entities may use calculation methods that
differ from those used by FHN. Tier 1 capital is a regulatory term and is generally defined as the sum of core capital (including common equity and instruments that can not be redeemed at the option of the holder) adjusted for certain items under
risk based capital regulations. Also a regulatory term, risk weighted assets includes total assets adjusted for credit risk and is used to determine regulatory capital ratios. 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.
2
|
|
|
FIRST HORIZON NATIONAL CORPORATION SEGMENT STRUCTURE |
|
|
3
FHN PERFORMANCE HIGHLIGHTS
First Quarter 2015 vs. Fourth Quarter 2014
Consolidated
|
|
Net loss available to common shareholders was $76.7 million, or $.33 loss per diluted share in first quarter, compared to net income of $47.1 million, or $.20 per diluted share in fourth quarter |
|
|
Reached an agreement in principle (AIP) with two federal agencies, the Department of Justice (DOJ) and the Department of Housing and Urban Development Office of Inspector General
(HUD), to settle potential claims related to FHNs underwriting and origination of FHA-insured mortgage loans which resulted in a $162.5 million pre-tax charge to litigation and regulatory matters |
|
|
|
Excluding the litigation charge net income available to common shareholders would have been $41.8 million, or $.18 per diluted share in first quarter |
|
|
Adopted ASU 2014-01, Investments Equity Method and Joint Ventures: Accounting for Investments in Qualified Affordable Housing Projects. ASU 2014-01 allows for both pre-tax effects and related tax
benefits for certain qualified investments in housing projects to be classified within tax expense provided certain technical requirements are met. Historically, such amounts were presented separately within other expense and tax expense. ASU
2014-01 required retrospective application. Accordingly all historical periods presented in this financial supplement have been revised to reflect this adoption |
|
|
Net interest income (NII) was $156.9 million in first quarter compared to $159.1 million in fourth quarter; Net interest margin (NIM) decreased to 2.74 percent in first quarter from 2.86 percent
in prior quarter |
|
|
|
The decline in NIM was primarily driven by an increase in average excess cash held at the Fed during the quarter |
|
|
Noninterest income (including securities gains) was $129.7 million in first quarter compared to $119.6 million in prior quarter |
|
|
|
The increase in noninterest income was largely driven by an increase in capital markets fixed income sales revenue |
|
|
Noninterest expense was $376.2 million in first quarter compared to $207.3 million in fourth quarter primarily due to an increase in litigation and regulatory loss accruals |
|
|
Period-end loans grew 3 percent to $16.7 billion in first quarter; average loans were $16.1 billion and $15.9 billion in first and fourth quarters, respectively |
|
|
Period-end core deposits increased to $18.2 billion in first quarter from $17.6 billion in prior quarter; Average core deposits increased 7 percent linked quarter to $17.8 billion in first quarter |
Regional Banking
|
|
Pre-tax income was $73.9 million in first quarter compared to $78.8 million in fourth quarter; pre-tax, pre-provision net revenue was $78.8 million and $84.3 million in first and fourth quarters, respectively
|
|
|
Average loans increased 3 percent, or $383.6 million to $13.5 billion in first quarter primarily driven by higher balances of commercial loans including loans to mortgage companies and asset based lending; period-end
loans increased 5 percent to $14.2 billion |
|
|
Average core deposits increased 6 percent to $16.3 billion in first quarter from $15.3 billion in fourth quarter; period-end core deposits increased 6 percent linked quarter to $16.8 billion |
|
|
|
Increase in average core deposits was largely driven by timing of commercial customer deposits, a new product offering, and a seasonal increase in public funds |
|
|
|
Increase in period-end core deposits was largely driven by a new product offering which resulted in a shift in funding mix |
|
|
NII was $154.4 million in first quarter compared to $157.6 million in fourth quarter; NIM decreased to 4.68 percent in first quarter from 4.78 percent in fourth quarter |
|
|
|
The decrease in NII was primarily attributable to fewer days in first quarter compared to fourth quarter and lower loan fees relative to the prior quarter, which were somewhat offset by higher commercial loan balances
|
|
|
|
The decline in NIM was largely driven by the continuing impact of low rates and a decrease in commercial loan fees relative to fourth quarter |
|
|
Provision for loan losses was $4.9 million in first quarter compared to $5.6 million in prior quarter |
|
|
Noninterest income was $60.2 million in first quarter compared to $64.3 million in fourth quarter |
|
|
|
Deposit fee income decreased primarily due to seasonality in non-sufficient funds (NSF) fee structure |
|
|
Noninterest expense decreased to $135.8 million in first quarter from $137.5 million in prior quarter |
Capital Markets
|
|
Pre-tax income increased to $11.2 million in first quarter from $6.0 million in fourth quarter |
|
|
Fixed income revenue increased 37 percent to $53.5 million in first quarter from $39.0 million in fourth quarter |
|
|
|
Fixed income average daily revenue (ADR) was $877 thousand in first quarter, up from $630 thousand in fourth quarter |
|
|
Noninterest expense was $54.7 million in first quarter compared to $46.2 million in the prior quarter |
|
|
|
The increase was primarily due to an increase in variable compensation costs and the seasonal first quarter FICA reset |
Corporate
|
|
Pre-tax loss was $24.9 million in first quarter compared to a loss of $27.7 million in prior quarter |
|
|
NII was negative $16.1 million in first quarter compared to negative $18.0 million in fourth quarter |
|
|
|
Estimated effective duration of the securities portfolio was 2.5 years in first quarter compared to 3.0 years in fourth quarter |
|
|
|
Estimated modified duration of the securities portfolio was 3.6 years in first quarter compared to 3.7 years in prior quarter |
|
|
Noninterest income increased to $5.4 million in first quarter from $4.4 million in fourth quarter |
|
|
|
Increase primarily relates to higher deferred compensation income driven by market conditions; changes in deferred compensation income are mirrored by changes in deferred compensation expense |
|
|
Noninterest expense was relatively flat at $14.2 million in first quarter |
4
FHN PERFORMANCE HIGHLIGHTS (continued)
First Quarter 2015 vs. Fourth Quarter 2014 (continued)
Non-Strategic
|
|
Pre-tax loss was $154.9 million in first quarter compared to pre-tax income of $8.3 million in fourth quarter |
|
|
Noninterest expense increased to $171.6 million in first quarter from $9.5 million in fourth quarter |
|
|
|
The increase was driven by $162.5 million of net loss accruals recognized in first quarter related to the AIP entered into to settle potential claims related to FHNs underwriting and origination of FHA-insured
mortgage loans |
|
|
NII was $14.2 million in first quarter compared to $15.9 million in fourth quarter due to continued run-off of the non-strategic loan portfolios |
|
|
Noninterest income was relatively flat at $2.5 million in first quarter |
Asset Quality
|
|
Allowance for loan losses declined to $228.3 million in first quarter from $232.4 million in fourth quarter; the allowance to loans ratio was 136 basis points in first quarter compared to 143 basis points in fourth
quarter |
|
|
|
The decline in the allowance was primarily driven by a $4.2 million reduction of non-strategic consumer real estate reserves |
|
|
Net charge-offs (NCOs) were $9.1 million in first quarter compared to $12.2 million in fourth quarter; annualized net charge-offs decreased to 23 basis points of average loans in first quarter from 30 basis
points in prior quarter |
|
|
|
Total commercial net charge-offs decreased to $1.7 million in the first quarter from $2.9 million in fourth quarter; total consumer net charge-offs decreased $1.8 million from the prior quarter |
|
|
Nonperforming loans (NPLs) in the portfolio declined to $200.2 million in the first quarter from $203.4 million in fourth quarter |
|
|
Nonperforming assets (NPAs), including loans held-for-sale, decreased to $236.8 million in first quarter from $241.5 million in the prior quarter |
|
|
|
Decrease due to declines in both nonperforming loans and foreclosed assets |
|
|
Total 30+ delinquencies increased to $78.0 million in first quarter compared to $75.8 million in prior quarter |
|
|
|
Commercial delinquencies increased by $5.4 million, driven by a $2.7 million increase in regional bank C&I and a $2.5 million increase in regional bank commercial real estate which was driven by one relationship.
The past due commercial real estate relationship is now current. |
|
|
|
Consumer delinquencies declined by $3.2 million and was primarily driven by improvement in consumer real estate which more than offset an increase in permanent mortgage delinquencies |
|
|
Troubled debt restructurings (TDRs) decreased to $395.8 million in first quarter from $411.3 million in prior quarter |
Taxes
|
|
The effective tax rates for first quarter and fourth quarter were 23.52 percent and 20.97 percent, respectively. The rates reflect the favorable effect on the tax rate from permanent benefits. The rates are not
comparable because of the different levels of pre-tax income |
|
|
|
Permanent benefits primarily consist of: life insurance, tax-exempt income, and tax credit investments |
|
|
|
The amortization of qualified tax credit investments is included in the effective tax rate for each period, under ASU 2014-01, which reduces the effective tax rate benefit from the credits |
|
|
|
A reversal of the capital loss and the state NOL deferred tax valuation allowances lowered the rate in fourth quarter. The rate for fourth quarter was also reduced by discrete tax benefits realized during that period.
|
Capital and Liquidity
|
|
Paid $0.06 per common share quarterly dividend on April 1, 2015 |
|
|
Paid preferred quarterly dividend of $1.6 million on April 10, 2015 |
|
|
Repurchased shares costing $15.8 million in first quarter under the $100 million share repurchase program announced in January 2014 |
|
|
|
Cumulative shares repurchased since the programs 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 estimated based on period-end balances under the new Basel III risk-based capital rules as phased in) |
|
|
|
7.57 percent for tangible common equity to tangible assets |
|
|
|
10.26 percent for Common Equity Tier 1 |
|
|
|
11.79 percent for Tier 1 |
|
|
|
14.00 percent for Total Capital |
|
|
|
9.59 percent for Leverage |
5
FHN CONSOLIDATED INCOME STATEMENT
Quarterly, Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q15 Changes vs. |
|
(Dollars in thousands, except per share data) |
|
1Q15 |
|
|
4Q14 |
|
|
3Q14 |
|
|
2Q14 |
|
|
1Q14 |
|
|
4Q14 |
|
|
1Q14 |
|
|
|
|
|
|
|
|
|
Interest income |
|
|
$178,068 |
|
|
|
$179,448 |
|
|
|
$178,858 |
|
|
|
$177,359 |
|
|
|
$173,584 |
|
|
|
(1) |
% |
|
|
3 |
% |
Less: interest expense |
|
|
21,202 |
|
|
|
20,398 |
|
|
|
19,317 |
|
|
|
20,591 |
|
|
|
21,225 |
|
|
|
4 |
% |
|
|
* |
|
Net interest income |
|
|
156,866 |
|
|
|
159,050 |
|
|
|
159,541 |
|
|
|
156,768 |
|
|
|
152,359 |
|
|
|
(1) |
% |
|
|
3 |
% |
Provision for loan losses |
|
|
5,000 |
|
|
|
6,000 |
|
|
|
6,000 |
|
|
|
5,000 |
|
|
|
10,000 |
|
|
|
(17) |
% |
|
|
(50) |
% |
Net interest income after provision for loan losses |
|
|
151,866 |
|
|
|
153,050 |
|
|
|
153,541 |
|
|
|
151,768 |
|
|
|
142,359 |
|
|
|
(1) |
% |
|
|
7 |
% |
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital markets |
|
|
61,619 |
|
|
|
48,486 |
|
|
|
47,589 |
|
|
|
47,680 |
|
|
|
56,840 |
|
|
|
27 |
% |
|
|
8 |
% |
Deposit transactions and cash management |
|
|
26,551 |
|
|
|
29,038 |
|
|
|
28,546 |
|
|
|
27,911 |
|
|
|
26,456 |
|
|
|
(9) |
% |
|
|
* |
|
Brokerage, management fees and commissions |
|
|
11,399 |
|
|
|
11,647 |
|
|
|
12,333 |
|
|
|
12,843 |
|
|
|
12,276 |
|
|
|
(2) |
% |
|
|
(7) |
% |
Mortgage banking (a) |
|
|
1,584 |
|
|
|
1,808 |
|
|
|
41,559 |
|
|
|
8,861 |
|
|
|
19,029 |
|
|
|
(12) |
% |
|
|
(92) |
% |
Trust services and investment management |
|
|
6,698 |
|
|
|
6,945 |
|
|
|
6,779 |
|
|
|
7,309 |
|
|
|
6,744 |
|
|
|
(4) |
% |
|
|
(1) |
% |
Bankcard income (b) |
|
|
5,186 |
|
|
|
5,737 |
|
|
|
5,521 |
|
|
|
7,919 |
|
|
|
4,520 |
|
|
|
(10) |
% |
|
|
15 |
% |
Bank-owned life insurance (c) |
|
|
3,462 |
|
|
|
3,503 |
|
|
|
3,547 |
|
|
|
3,312 |
|
|
|
6,032 |
|
|
|
(1) |
% |
|
|
(43) |
% |
Other service charges |
|
|
2,848 |
|
|
|
2,830 |
|
|
|
3,064 |
|
|
|
3,143 |
|
|
|
2,845 |
|
|
|
1 |
% |
|
|
* |
|
Insurance commissions |
|
|
596 |
|
|
|
616 |
|
|
|
593 |
|
|
|
611 |
|
|
|
437 |
|
|
|
(3) |
% |
|
|
36 |
% |
Securities gains/(losses), net |
|
|
276 |
|
|
|
- |
|
|
|
(862) |
|
|
|
(1,923) |
|
|
|
5,657 |
|
|
|
NM |
|
|
|
(95) |
% |
Other (d) |
|
|
9,470 |
|
|
|
8,988 |
|
|
|
9,146 |
|
|
|
9,235 |
|
|
|
4,894 |
|
|
|
5 |
% |
|
|
94 |
% |
Total noninterest income |
|
|
129,689 |
|
|
|
119,598 |
|
|
|
157,815 |
|
|
|
126,901 |
|
|
|
145,730 |
|
|
|
8 |
% |
|
|
(11) |
% |
Adjusted gross income after provision for loan losses |
|
|
281,555 |
|
|
|
272,648 |
|
|
|
311,356 |
|
|
|
278,669 |
|
|
|
288,089 |
|
|
|
3 |
% |
|
|
(2) |
% |
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee compensation, incentives, and benefits |
|
|
131,444 |
|
|
|
118,529 |
|
|
|
120,742 |
|
|
|
119,659 |
|
|
|
119,229 |
|
|
|
11 |
% |
|
|
10 |
% |
Repurchase and foreclosure provision (e) |
|
|
- |
|
|
|
- |
|
|
|
(4,300) |
|
|
|
- |
|
|
|
- |
|
|
|
NM |
|
|
|
NM |
|
Legal and professional fees (f) |
|
|
7,257 |
|
|
|
12,552 |
|
|
|
10,463 |
|
|
|
6,151 |
|
|
|
15,039 |
|
|
|
(42) |
% |
|
|
(52) |
% |
Occupancy (g) |
|
|
12,218 |
|
|
|
12,077 |
|
|
|
12,405 |
|
|
|
11,944 |
|
|
|
17,592 |
|
|
|
1 |
% |
|
|
(31) |
% |
Computer software |
|
|
10,942 |
|
|
|
10,574 |
|
|
|
10,614 |
|
|
|
11,087 |
|
|
|
10,656 |
|
|
|
3 |
% |
|
|
3 |
% |
Contract employment and outsourcing |
|
|
4,584 |
|
|
|
4,578 |
|
|
|
5,199 |
|
|
|
5,318 |
|
|
|
4,325 |
|
|
|
* |
|
|
|
6 |
% |
Operations services |
|
|
9,337 |
|
|
|
8,417 |
|
|
|
9,044 |
|
|
|
8,804 |
|
|
|
8,982 |
|
|
|
11 |
% |
|
|
4 |
% |
Equipment rentals, depreciation, and maintenance |
|
|
7,220 |
|
|
|
7,523 |
|
|
|
7,150 |
|
|
|
7,442 |
|
|
|
7,849 |
|
|
|
(4) |
% |
|
|
(8) |
% |
FDIC premium expense (h) |
|
|
3,448 |
|
|
|
2,881 |
|
|
|
3,456 |
|
|
|
1,136 |
|
|
|
3,991 |
|
|
|
20 |
% |
|
|
(14) |
% |
Advertising and public relations |
|
|
4,733 |
|
|
|
4,077 |
|
|
|
4,386 |
|
|
|
4,312 |
|
|
|
5,908 |
|
|
|
16 |
% |
|
|
(20) |
% |
Communications and courier |
|
|
3,876 |
|
|
|
4,274 |
|
|
|
3,628 |
|
|
|
3,948 |
|
|
|
4,224 |
|
|
|
(9) |
% |
|
|
(8) |
% |
Foreclosed real estate |
|
|
(131) |
|
|
|
492 |
|
|
|
788 |
|
|
|
439 |
|
|
|
784 |
|
|
|
NM |
|
|
|
NM |
|
Amortization of intangible assets |
|
|
1,298 |
|
|
|
1,225 |
|
|
|
982 |
|
|
|
981 |
|
|
|
982 |
|
|
|
6 |
% |
|
|
32 |
% |
Other (d) |
|
|
179,995 |
|
|
|
20,110 |
|
|
|
59,459 |
|
|
|
(18,059) |
|
|
|
18,483 |
|
|
|
NM |
|
|
|
NM |
|
Total noninterest expense |
|
|
376,221 |
|
|
|
207,309 |
|
|
|
244,016 |
|
|
|
163,162 |
|
|
|
218,044 |
|
|
|
81 |
% |
|
|
73 |
% |
Income/(loss) before income taxes |
|
|
(94,666) |
|
|
|
65,339 |
|
|
|
67,340 |
|
|
|
115,507 |
|
|
|
70,045 |
|
|
|
NM |
|
|
|
NM |
|
Provision/(benefit) for income taxes |
|
|
(22,261) |
|
|
|
13,699 |
|
|
|
16,842 |
|
|
|
33,578 |
|
|
|
20,066 |
|
|
|
NM |
|
|
|
NM |
|
Net income/(loss) |
|
|
(72,405) |
|
|
|
51,640 |
|
|
|
50,498 |
|
|
|
81,929 |
|
|
|
49,979 |
|
|
|
NM |
|
|
|
NM |
|
Net income attributable to noncontrolling interest |
|
|
2,758 |
|
|
|
2,980 |
|
|
|
2,875 |
|
|
|
2,859 |
|
|
|
2,813 |
|
|
|
(7) |
% |
|
|
(2) |
% |
Net income/(loss) attributable to controlling interest |
|
|
(75,163) |
|
|
|
48,660 |
|
|
|
47,623 |
|
|
|
79,070 |
|
|
|
47,166 |
|
|
|
NM |
|
|
|
NM |
|
Preferred stock dividends |
|
|
1,550 |
|
|
|
1,550 |
|
|
|
1,550 |
|
|
|
1,550 |
|
|
|
1,550 |
|
|
|
* |
|
|
|
* |
|
Net income/(loss) available to common shareholders |
|
|
$(76,713) |
|
|
|
$47,110 |
|
|
|
$46,073 |
|
|
|
$77,520 |
|
|
|
$45,616 |
|
|
|
NM |
|
|
|
NM |
|
Common Stock Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS |
|
|
$(0.33) |
|
|
|
$0.20 |
|
|
|
$0.20 |
|
|
|
$0.33 |
|
|
|
$0.19 |
|
|
|
NM |
|
|
|
NM |
|
Shares (thousands)(i) |
|
|
232,816 |
|
|
|
233,693 |
|
|
|
235,329 |
|
|
|
235,797 |
|
|
|
235,183 |
|
|
|
* |
|
|
|
(1) |
% |
Diluted EPS |
|
|
$(0.33) |
|
|
|
$0.20 |
|
|
|
$0.19 |
|
|
|
$0.33 |
|
|
|
$0.19 |
|
|
|
NM |
|
|
|
NM |
|
Diluted shares (thousands) |
|
|
232,816 |
|
|
|
235,448 |
|
|
|
236,862 |
|
|
|
237,250 |
|
|
|
237,401 |
|
|
|
(1) |
% |
|
|
(2) |
% |
Key Ratios & Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (annualized) (j) |
|
|
(1.15) |
% |
|
|
0.83 |
% |
|
|
0.84 |
% |
|
|
1.39 |
% |
|
|
0.85 |
% |
|
|
|
|
|
|
|
|
Return on average common equity (annualized) (j) |
|
|
(14.04) |
% |
|
|
8.26 |
% |
|
|
8.14 |
% |
|
|
14.30 |
% |
|
|
8.63 |
% |
|
|
|
|
|
|
|
|
Fee income to total revenue (j) |
|
|
45.21 |
% |
|
|
42.92 |
% |
|
|
49.86 |
% |
|
|
45.11 |
% |
|
|
47.90 |
% |
|
|
|
|
|
|
|
|
Efficiency ratio (j) |
|
|
NM |
|
|
|
74.40 |
% |
|
|
76.68 |
% |
|
|
57.13 |
% |
|
|
74.56 |
% |
|
|
|
|
|
|
|
|
Full time equivalent employees |
|
|
4,226 |
|
|
|
4,250 |
|
|
|
4,193 |
|
|
|
4,216 |
|
|
|
4,251 |
|
|
|
|
|
|
|
|
|
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; 1Q14 includes the receipt of previously unrecognized
servicing fees in conjunction with transfers of servicing in 1Q14. |
(b) |
2Q14 includes $2.8 million of Visa volume incentives. |
(c) |
1Q14 includes $2.8 million of policy benefits received. |
(d) |
Refer to the Other Income and Other Expense table on page 7 for additional information. |
(e) |
3Q14 expense reversal associated with the settlement of certain repurchase claims. |
(f) |
2Q14 includes an $8.5 million expense reversal related to agreements with insurance companies for the recovery of Sentinel legal expenses. |
(g) |
1Q14 includes $4.6 million of lease abandonment expense. |
(h) |
2Q14 includes the effect of $3.3 million of FDIC premium refunds. |
(i) |
1Q15, 4Q14 and 3Q14 decreases primarily relate to shares purchased under the share repurchase program. |
(j) |
See Glossary of Terms for definitions of Key Ratios. |
6
FHN OTHER INCOME AND OTHER EXPENSE
Quarterly, Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q15 Changes vs. |
|
(Thousands) |
|
1Q15 |
|
|
4Q14 |
|
|
3Q14 |
|
|
2Q14 |
|
|
1Q14 |
|
|
4Q14 |
|
|
1Q14 |
|
|
|
|
|
|
|
|
|
Other Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATM and interchange fees |
|
|
$2,761 |
|
|
|
$2,961 |
|
|
|
$2,739 |
|
|
|
$2,746 |
|
|
|
$2,497 |
|
|
|
(7) |
% |
|
|
11 |
% |
Electronic banking fees |
|
|
1,428 |
|
|
|
1,561 |
|
|
|
1,560 |
|
|
|
1,535 |
|
|
|
1,534 |
|
|
|
(9) |
% |
|
|
(7) |
% |
Letter of credit fees |
|
|
1,123 |
|
|
|
1,111 |
|
|
|
917 |
|
|
|
1,173 |
|
|
|
1,663 |
|
|
|
1 |
% |
|
|
(32) |
% |
Deferred compensation (a) |
|
|
1,033 |
|
|
|
242 |
|
|
|
(41) |
|
|
|
1,184 |
|
|
|
657 |
|
|
|
NM |
|
|
|
57 |
% |
Gain /(loss) on extinguishment of debt (b) |
|
|
- |
|
|
|
184 |
|
|
|
- |
|
|
|
- |
|
|
|
(4,350) |
|
|
|
NM |
|
|
|
NM |
|
Other |
|
|
3,125 |
|
|
|
2,929 |
|
|
|
3,971 |
|
|
|
2,597 |
|
|
|
2,893 |
|
|
|
7 |
% |
|
|
8 |
% |
Total |
|
|
$9,470 |
|
|
|
$8,988 |
|
|
|
$9,146 |
|
|
|
$9,235 |
|
|
|
$4,894 |
|
|
|
5 |
% |
|
|
94 |
% |
|
|
|
|
|
|
|
|
Other Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Litigation and regulatory matters (c) |
|
|
$162,500 |
|
|
|
$- |
|
|
|
$35,390 |
|
|
|
$(38,200) |
|
|
|
$90 |
|
|
|
NM |
|
|
|
NM |
|
Other insurance and taxes |
|
|
3,329 |
|
|
|
2,722 |
|
|
|
3,909 |
|
|
|
3,209 |
|
|
|
3,060 |
|
|
|
22 |
% |
|
|
9 |
% |
Tax credit investments (d) |
|
|
395 |
|
|
|
589 |
|
|
|
311 |
|
|
|
862 |
|
|
|
325 |
|
|
|
(33) |
% |
|
|
22 |
% |
Travel and entertainment |
|
|
1,614 |
|
|
|
2,462 |
|
|
|
2,164 |
|
|
|
2,645 |
|
|
|
1,824 |
|
|
|
(34) |
% |
|
|
(12) |
% |
Employee training and dues |
|
|
1,132 |
|
|
|
1,258 |
|
|
|
1,194 |
|
|
|
1,200 |
|
|
|
866 |
|
|
|
(10) |
% |
|
|
31 |
% |
Customer relations |
|
|
1,314 |
|
|
|
1,397 |
|
|
|
1,406 |
|
|
|
1,680 |
|
|
|
1,243 |
|
|
|
(6) |
% |
|
|
6 |
% |
Miscellaneous loan costs |
|
|
361 |
|
|
|
540 |
|
|
|
597 |
|
|
|
839 |
|
|
|
714 |
|
|
|
(33) |
% |
|
|
(49) |
% |
Supplies |
|
|
927 |
|
|
|
1,046 |
|
|
|
779 |
|
|
|
804 |
|
|
|
1,116 |
|
|
|
(11) |
% |
|
|
(17) |
% |
Other (e) |
|
|
8,423 |
|
|
|
10,096 |
|
|
|
13,709 |
|
|
|
8,902 |
|
|
|
9,245 |
|
|
|
(17) |
% |
|
|
(9) |
% |
Total |
|
|
$179,995 |
|
|
|
$20,110 |
|
|
|
$59,459 |
|
|
|
$(18,059) |
|
|
|
$18,483 |
|
|
|
NM |
|
|
|
NM |
|
Certain previously reported amounts have been reclassified to agree with current presentation.
NM - Not meaningful
(a) |
Amounts driven by market conditions and are mirrored by changes in deferred compensation expense which is included in employee compensation expense. |
(b) |
1Q14 loss associated with the collapse of two HELOC securitization trusts. |
(c) |
1Q15 loss accruals relate to an AIP to settle potential claims related to FHNs 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) |
Represents new market and historic tax credits and affordable housing projects which do not qualify for accounting changes allowed under ASU 2014-01. All historical periods have been revised. |
(e) |
3Q14 and 1Q14 include $3.2 million and $2.3 million, respectively, of negative valuation adjustments associated with derivatives related to prior sales of Visa Class B shares. |
7
FHN CONSOLIDATED PERIOD-END BALANCE SHEET
Quarterly, Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q15 Changes vs. |
|
(Thousands) |
|
1Q15 |
|
|
4Q14 |
|
|
3Q14 |
|
|
2Q14 |
|
|
1Q14 |
|
|
4Q14 |
|
|
1Q14 |
|
|
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
|
|
$3,676,630 |
|
|
|
$3,560,905 |
|
|
|
$3,538,957 |
|
|
|
$3,580,821 |
|
|
|
$3,575,453 |
|
|
|
3 |
% |
|
|
3 |
% |
Loans held-for-sale (a) |
|
|
133,958 |
|
|
|
141,285 |
|
|
|
151,915 |
|
|
|
358,945 |
|
|
|
361,359 |
|
|
|
(5) |
% |
|
|
(63) |
% |
Loans, net of unearned income |
|
|
16,732,123 |
|
|
|
16,230,166 |
|
|
|
15,812,017 |
|
|
|
15,795,709 |
|
|
|
15,119,461 |
|
|
|
3 |
% |
|
|
11 |
% |
Federal funds sold |
|
|
43,052 |
|
|
|
63,080 |
|
|
|
55,242 |
|
|
|
51,537 |
|
|
|
16,555 |
|
|
|
(32) |
% |
|
|
NM |
|
Securities purchased under agreements to resell |
|
|
831,541 |
|
|
|
659,154 |
|
|
|
561,802 |
|
|
|
624,477 |
|
|
|
605,276 |
|
|
|
26 |
% |
|
|
37 |
% |
Interest-bearing cash (b) |
|
|
438,633 |
|
|
|
1,621,967 |
|
|
|
275,485 |
|
|
|
255,920 |
|
|
|
685,540 |
|
|
|
(73) |
% |
|
|
(36) |
% |
Trading securities |
|
|
1,532,463 |
|
|
|
1,194,391 |
|
|
|
1,338,022 |
|
|
|
1,150,280 |
|
|
|
1,194,749 |
|
|
|
28 |
% |
|
|
28 |
% |
Total earning assets |
|
|
23,388,400 |
|
|
|
23,470,948 |
|
|
|
21,733,440 |
|
|
|
21,817,689 |
|
|
|
21,558,393 |
|
|
|
* |
|
|
|
8 |
% |
Cash and due from banks |
|
|
282,800 |
|
|
|
349,171 |
|
|
|
292,687 |
|
|
|
417,108 |
|
|
|
450,270 |
|
|
|
(19) |
% |
|
|
(37) |
% |
Capital markets receivables (c) |
|
|
190,662 |
|
|
|
42,488 |
|
|
|
197,507 |
|
|
|
174,224 |
|
|
|
51,082 |
|
|
|
NM |
|
|
|
NM |
|
Goodwill (d) |
|
|
145,932 |
|
|
|
145,932 |
|
|
|
141,943 |
|
|
|
141,943 |
|
|
|
141,943 |
|
|
|
* |
|
|
|
3 |
% |
Other intangible assets, net (d) |
|
|
28,220 |
|
|
|
29,518 |
|
|
|
19,044 |
|
|
|
20,025 |
|
|
|
21,007 |
|
|
|
(4) |
% |
|
|
34 |
% |
Premises and equipment, net (d) |
|
|
301,069 |
|
|
|
302,996 |
|
|
|
295,833 |
|
|
|
300,533 |
|
|
|
299,183 |
|
|
|
(1) |
% |
|
|
1 |
% |
Real estate acquired by foreclosure |
|
|
39,776 |
|
|
|
39,922 |
|
|
|
47,996 |
|
|
|
57,552 |
|
|
|
66,035 |
|
|
|
* |
|
|
|
(40) |
% |
Allowance for loan losses |
|
|
(228,328) |
|
|
|
(232,448) |
|
|
|
(238,641) |
|
|
|
(243,628) |
|
|
|
(247,246) |
|
|
|
(2) |
% |
|
|
(8) |
% |
Derivative assets |
|
|
148,153 |
|
|
|
134,088 |
|
|
|
137,742 |
|
|
|
162,067 |
|
|
|
166,465 |
|
|
|
10 |
% |
|
|
(11) |
% |
Other assets |
|
|
1,419,204 |
|
|
|
1,385,572 |
|
|
|
1,358,140 |
|
|
|
1,377,019 |
|
|
|
1,438,984 |
|
|
|
2 |
% |
|
|
(1) |
% |
Total assets |
|
|
$25,715,888 |
|
|
|
$25,668,187 |
|
|
|
$23,985,691 |
|
|
|
$24,224,532 |
|
|
|
$23,946,116 |
|
|
|
* |
|
|
|
7 |
% |
|
|
|
|
|
|
|
|
Liabilities and Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings |
|
|
$7,428,000 |
|
|
|
$7,455,354 |
|
|
|
$6,371,156 |
|
|
|
$6,317,197 |
|
|
|
$6,630,142 |
|
|
|
* |
|
|
|
12 |
% |
Other interest-bearing deposits |
|
|
4,939,240 |
|
|
|
4,140,991 |
|
|
|
3,955,152 |
|
|
|
4,014,071 |
|
|
|
4,071,699 |
|
|
|
19 |
% |
|
|
21 |
% |
Time deposits |
|
|
792,914 |
|
|
|
831,666 |
|
|
|
767,699 |
|
|
|
808,822 |
|
|
|
898,223 |
|
|
|
(5) |
% |
|
|
(12) |
% |
Total interest-bearing core deposits |
|
|
13,160,154 |
|
|
|
12,428,011 |
|
|
|
11,094,007 |
|
|
|
11,140,090 |
|
|
|
11,600,064 |
|
|
|
6 |
% |
|
|
13 |
% |
Noninterest-bearing deposits |
|
|
5,060,897 |
|
|
|
5,195,656 |
|
|
|
4,603,826 |
|
|
|
4,513,800 |
|
|
|
4,534,245 |
|
|
|
(3) |
% |
|
|
12 |
% |
Total core deposits (e) |
|
|
18,221,051 |
|
|
|
17,623,667 |
|
|
|
15,697,833 |
|
|
|
15,653,890 |
|
|
|
16,134,309 |
|
|
|
3 |
% |
|
|
13 |
% |
Certificates of deposit $100,000 and more |
|
|
417,503 |
|
|
|
445,272 |
|
|
|
446,938 |
|
|
|
503,597 |
|
|
|
538,434 |
|
|
|
(6) |
% |
|
|
(22) |
% |
Total deposits |
|
|
18,638,554 |
|
|
|
18,068,939 |
|
|
|
16,144,771 |
|
|
|
16,157,487 |
|
|
|
16,672,743 |
|
|
|
3 |
% |
|
|
12 |
% |
Federal funds purchased |
|
|
703,352 |
|
|
|
1,037,052 |
|
|
|
928,159 |
|
|
|
947,946 |
|
|
|
1,135,665 |
|
|
|
(32) |
% |
|
|
(38) |
% |
Securities sold under agreements to repurchase |
|
|
309,297 |
|
|
|
562,214 |
|
|
|
479,384 |
|
|
|
475,530 |
|
|
|
411,795 |
|
|
|
(45) |
% |
|
|
(25) |
% |
Trading liabilities |
|
|
813,141 |
|
|
|
594,314 |
|
|
|
532,234 |
|
|
|
706,119 |
|
|
|
667,257 |
|
|
|
37 |
% |
|
|
22 |
% |
Other short-term borrowings (f) |
|
|
158,745 |
|
|
|
157,218 |
|
|
|
790,080 |
|
|
|
1,073,250 |
|
|
|
204,023 |
|
|
|
1 |
% |
|
|
(22) |
% |
Term borrowings (g) |
|
|
1,573,215 |
|
|
|
1,880,105 |
|
|
|
1,491,138 |
|
|
|
1,501,209 |
|
|
|
1,507,048 |
|
|
|
(16) |
% |
|
|
4 |
% |
Capital markets payables (c) |
|
|
91,176 |
|
|
|
18,157 |
|
|
|
329,960 |
|
|
|
95,299 |
|
|
|
39,510 |
|
|
|
NM |
|
|
|
NM |
|
Derivative liabilities |
|
|
133,273 |
|
|
|
119,239 |
|
|
|
123,442 |
|
|
|
138,336 |
|
|
|
137,863 |
|
|
|
12 |
% |
|
|
(3) |
% |
Other liabilities |
|
|
795,878 |
|
|
|
649,359 |
|
|
|
551,615 |
|
|
|
507,894 |
|
|
|
628,420 |
|
|
|
23 |
% |
|
|
27 |
% |
Total liabilities |
|
|
23,216,631 |
|
|
|
23,086,597 |
|
|
|
21,370,783 |
|
|
|
21,603,070 |
|
|
|
21,404,324 |
|
|
|
1 |
% |
|
|
8 |
% |
Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock (h) |
|
|
145,937 |
|
|
|
146,387 |
|
|
|
147,030 |
|
|
|
148,217 |
|
|
|
147,866 |
|
|
|
* |
|
|
|
(1) |
% |
Capital surplus (h) |
|
|
1,370,711 |
|
|
|
1,380,809 |
|
|
|
1,390,081 |
|
|
|
1,416,012 |
|
|
|
1,417,170 |
|
|
|
(1) |
% |
|
|
(3) |
% |
Undivided profits |
|
|
760,713 |
|
|
|
851,585 |
|
|
|
819,577 |
|
|
|
788,289 |
|
|
|
725,820 |
|
|
|
(11) |
% |
|
|
5 |
% |
Accumulated other comprehensive loss, net |
|
|
(169,159) |
|
|
|
(188,246) |
|
|
|
(132,835) |
|
|
|
(122,111) |
|
|
|
(140,119) |
|
|
|
(10) |
% |
|
|
21 |
% |
Preferred stock |
|
|
95,624 |
|
|
|
95,624 |
|
|
|
95,624 |
|
|
|
95,624 |
|
|
|
95,624 |
|
|
|
* |
|
|
|
* |
|
Noncontrolling interest (i) |
|
|
295,431 |
|
|
|
295,431 |
|
|
|
295,431 |
|
|
|
295,431 |
|
|
|
295,431 |
|
|
|
* |
|
|
|
* |
|
Total equity |
|
|
2,499,257 |
|
|
|
2,581,590 |
|
|
|
2,614,908 |
|
|
|
2,621,462 |
|
|
|
2,541,792 |
|
|
|
(3) |
% |
|
|
(2) |
% |
Total liabilities and equity |
|
|
$25,715,888 |
|
|
|
$25,668,187 |
|
|
|
$23,985,691 |
|
|
|
$24,224,532 |
|
|
|
$23,946,116 |
|
|
|
* |
|
|
|
7 |
% |
Certain previously reported amounts have been reclassified to agree with current presentation.
NM - Not meaningful
* 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) |
1Q15 average core deposits were $17.8 billion. |
(f) |
3Q14 and 2Q14 include increased FHLB borrowings as a result of loan growth and deposit fluctuations. |
(g) |
In 1Q15 $304 million of FTBNA subordinated notes matured. In 4Q14 FTBNA issued $400 million of senior bank notes. |
(h) |
1Q15, 4Q14 and 3Q14 decreases relate to shares purchased under the share repurchase program. |
(i) |
Consists of preferred stock of subsidiaries. |
8
FHN CONSOLIDATED AVERAGE BALANCE SHEET
Quarterly, Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q15 Changes vs. |
|
(Thousands) |
|
1Q15 |
|
|
4Q14 |
|
|
3Q14 |
|
|
2Q14 |
|
|
1Q14 |
|
|
4Q14 |
|
|
1Q14 |
|
|
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial, and industrial (C&I) |
|
|
$8,965,657 |
|
|
|
$8,584,065 |
|
|
|
$8,395,553 |
|
|
|
$7,994,788 |
|
|
|
$7,639,584 |
|
|
|
4 % |
|
|
|
17 % |
|
Commercial real estate |
|
|
1,290,246 |
|
|
|
1,287,816 |
|
|
|
1,260,715 |
|
|
|
1,203,631 |
|
|
|
1,139,749 |
|
|
|
* |
|
|
|
13 % |
|
Consumer real estate |
|
|
4,988,532 |
|
|
|
5,087,104 |
|
|
|
5,173,088 |
|
|
|
5,230,107 |
|
|
|
5,305,596 |
|
|
|
(2)% |
|
|
|
(6)% |
|
Permanent mortgage |
|
|
526,616 |
|
|
|
552,065 |
|
|
|
581,876 |
|
|
|
607,296 |
|
|
|
637,642 |
|
|
|
(5)% |
|
|
|
(17)% |
|
Credit card and other |
|
|
351,503 |
|
|
|
357,321 |
|
|
|
352,133 |
|
|
|
345,748 |
|
|
|
336,454 |
|
|
|
(2)% |
|
|
|
4 % |
|
Total loans, net of unearned income (a) |
|
|
16,122,554 |
|
|
|
15,868,371 |
|
|
|
15,763,365 |
|
|
|
15,381,570 |
|
|
|
15,059,025 |
|
|
|
2 % |
|
|
|
7 % |
|
Loans held-for-sale (b) |
|
|
138,373 |
|
|
|
144,061 |
|
|
|
318,743 |
|
|
|
355,822 |
|
|
|
367,899 |
|
|
|
(4)% |
|
|
|
(62)% |
|
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. treasuries |
|
|
100 |
|
|
|
100 |
|
|
|
26,764 |
|
|
|
39,995 |
|
|
|
41,828 |
|
|
|
* |
|
|
|
NM |
|
U.S. government agencies |
|
|
3,391,297 |
|
|
|
3,363,053 |
|
|
|
3,345,739 |
|
|
|
3,330,598 |
|
|
|
3,222,642 |
|
|
|
1 % |
|
|
|
5 % |
|
States and municipalities |
|
|
14,410 |
|
|
|
14,493 |
|
|
|
17,458 |
|
|
|
19,430 |
|
|
|
19,425 |
|
|
|
(1)% |
|
|
|
(26)% |
|
Other |
|
|
181,858 |
|
|
|
181,806 |
|
|
|
184,934 |
|
|
|
189,449 |
|
|
|
211,891 |
|
|
|
* |
|
|
|
(14)% |
|
Total investment securities |
|
|
3,587,665 |
|
|
|
3,559,452 |
|
|
|
3,574,895 |
|
|
|
3,579,472 |
|
|
|
3,495,786 |
|
|
|
1 % |
|
|
|
3 % |
|
Trading securities |
|
|
1,371,514 |
|
|
|
1,182,762 |
|
|
|
1,060,123 |
|
|
|
1,118,425 |
|
|
|
1,108,747 |
|
|
|
16 % |
|
|
|
24 % |
|
Other earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold |
|
|
23,710 |
|
|
|
26,543 |
|
|
|
37,274 |
|
|
|
29,490 |
|
|
|
21,615 |
|
|
|
(11)% |
|
|
|
10 % |
|
Securities purchased under agreements to resell |
|
|
777,989 |
|
|
|
672,764 |
|
|
|
644,022 |
|
|
|
664,194 |
|
|
|
622,466 |
|
|
|
16 % |
|
|
|
25 % |
|
Interest-bearing cash (c) |
|
|
1,451,826 |
|
|
|
1,011,983 |
|
|
|
288,192 |
|
|
|
363,674 |
|
|
|
972,537 |
|
|
|
43 % |
|
|
|
49 % |
|
Total other earning assets |
|
|
2,253,525 |
|
|
|
1,711,290 |
|
|
|
969,488 |
|
|
|
1,057,358 |
|
|
|
1,616,618 |
|
|
|
32 % |
|
|
|
39 % |
|
Total earning assets |
|
|
23,473,631 |
|
|
|
22,465,936 |
|
|
|
21,686,614 |
|
|
|
21,492,647 |
|
|
|
21,648,075 |
|
|
|
4 % |
|
|
|
8 % |
|
Allowance for loan losses |
|
|
(232,655) |
|
|
|
(238,850) |
|
|
|
(240,433) |
|
|
|
(246,779) |
|
|
|
(249,733) |
|
|
|
(3)% |
|
|
|
(7)% |
|
Cash and due from banks |
|
|
342,512 |
|
|
|
341,338 |
|
|
|
321,427 |
|
|
|
308,890 |
|
|
|
336,543 |
|
|
|
* |
|
|
|
2 % |
|
Capital markets receivables |
|
|
48,937 |
|
|
|
63,384 |
|
|
|
55,937 |
|
|
|
46,864 |
|
|
|
54,654 |
|
|
|
(23)% |
|
|
|
(10)% |
|
Premises and equipment, net |
|
|
301,989 |
|
|
|
301,512 |
|
|
|
297,636 |
|
|
|
299,899 |
|
|
|
301,065 |
|
|
|
* |
|
|
|
* |
|
Derivative assets |
|
|
139,086 |
|
|
|
141,146 |
|
|
|
154,988 |
|
|
|
165,684 |
|
|
|
181,586 |
|
|
|
(1)% |
|
|
|
(23)% |
|
Other assets |
|
|
1,571,104 |
|
|
|
1,538,612 |
|
|
|
1,525,659 |
|
|
|
1,582,789 |
|
|
|
1,643,095 |
|
|
|
2 % |
|
|
|
(4)% |
|
Total assets |
|
|
$25,644,604 |
|
|
|
$24,613,078 |
|
|
|
$23,801,828 |
|
|
|
$23,649,994 |
|
|
|
$23,915,285 |
|
|
|
4 % |
|
|
|
7 % |
|
|
|
|
|
|
|
|
|
Liabilities and equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings |
|
|
$7,377,045 |
|
|
|
$6,929,750 |
|
|
|
$6,327,556 |
|
|
|
$6,427,265 |
|
|
|
$6,683,749 |
|
|
|
6 % |
|
|
|
10 % |
|
Other interest-bearing deposits |
|
|
4,483,907 |
|
|
|
3,895,022 |
|
|
|
3,697,854 |
|
|
|
3,779,293 |
|
|
|
3,830,839 |
|
|
|
15 % |
|
|
|
17 % |
|
Time deposits |
|
|
812,749 |
|
|
|
830,412 |
|
|
|
785,154 |
|
|
|
859,551 |
|
|
|
924,025 |
|
|
|
(2)% |
|
|
|
(12)% |
|
Total interest-bearing core deposits |
|
|
12,673,701 |
|
|
|
11,655,184 |
|
|
|
10,810,564 |
|
|
|
11,066,109 |
|
|
|
11,438,613 |
|
|
|
9 % |
|
|
|
11 % |
|
Certificates of deposit $100,000 and more |
|
|
423,480 |
|
|
|
451,669 |
|
|
|
464,792 |
|
|
|
512,527 |
|
|
|
545,845 |
|
|
|
(6)% |
|
|
|
(22)% |
|
Federal funds purchased |
|
|
1,079,531 |
|
|
|
1,137,909 |
|
|
|
1,028,852 |
|
|
|
1,080,347 |
|
|
|
1,161,594 |
|
|
|
(5)% |
|
|
|
(7)% |
|
Securities sold under agreements to repurchase |
|
|
474,448 |
|
|
|
471,712 |
|
|
|
406,219 |
|
|
|
458,608 |
|
|
|
454,937 |
|
|
|
1 % |
|
|
|
4 % |
|
Capital markets trading liabilities |
|
|
728,553 |
|
|
|
634,375 |
|
|
|
621,880 |
|
|
|
671,930 |
|
|
|
607,114 |
|
|
|
15 % |
|
|
|
20 % |
|
Other short-term borrowings (d) |
|
|
165,408 |
|
|
|
302,353 |
|
|
|
1,093,014 |
|
|
|
540,389 |
|
|
|
184,721 |
|
|
|
(45)% |
|
|
|
(10)% |
|
Term borrowings (e) |
|
|
1,621,983 |
|
|
|
1,664,924 |
|
|
|
1,499,959 |
|
|
|
1,505,860 |
|
|
|
1,702,107 |
|
|
|
(3)% |
|
|
|
(5)% |
|
Total interest-bearing liabilities |
|
|
17,167,104 |
|
|
|
16,318,126 |
|
|
|
15,925,280 |
|
|
|
15,835,770 |
|
|
|
16,094,931 |
|
|
|
5 % |
|
|
|
7 % |
|
Noninterest-bearing deposits |
|
|
5,098,361 |
|
|
|
4,974,748 |
|
|
|
4,602,292 |
|
|
|
4,547,838 |
|
|
|
4,536,080 |
|
|
|
2 % |
|
|
|
12 % |
|
Capital markets payables |
|
|
34,800 |
|
|
|
40,273 |
|
|
|
36,762 |
|
|
|
34,293 |
|
|
|
33,144 |
|
|
|
(14)% |
|
|
|
5 % |
|
Derivative liabilities |
|
|
124,305 |
|
|
|
124,530 |
|
|
|
130,997 |
|
|
|
138,282 |
|
|
|
152,596 |
|
|
|
* |
|
|
|
(19)% |
|
Other liabilities |
|
|
612,513 |
|
|
|
502,641 |
|
|
|
470,520 |
|
|
|
528,531 |
|
|
|
563,824 |
|
|
|
22 % |
|
|
|
9 % |
|
Total liabilities |
|
|
23,037,083 |
|
|
|
21,960,318 |
|
|
|
21,165,851 |
|
|
|
21,084,714 |
|
|
|
21,380,575 |
|
|
|
5 % |
|
|
|
8 % |
|
Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock (f) |
|
|
146,225 |
|
|
|
146,789 |
|
|
|
147,820 |
|
|
|
148,085 |
|
|
|
147,751 |
|
|
|
* |
|
|
|
(1)% |
|
Capital surplus |
|
|
1,377,178 |
|
|
|
1,387,116 |
|
|
|
1,408,682 |
|
|
|
1,416,811 |
|
|
|
1,417,642 |
|
|
|
(1)% |
|
|
|
(3)% |
|
Undivided profits |
|
|
868,605 |
|
|
|
847,687 |
|
|
|
814,300 |
|
|
|
740,313 |
|
|
|
713,425 |
|
|
|
2 % |
|
|
|
22 % |
|
Accumulated other comprehensive loss, net |
|
|
(175,542) |
|
|
|
(119,887) |
|
|
|
(125,880) |
|
|
|
(130,984) |
|
|
|
(135,163) |
|
|
|
46 % |
|
|
|
30 % |
|
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 |
|
|
2,607,521 |
|
|
|
2,652,760 |
|
|
|
2,635,977 |
|
|
|
2,565,280 |
|
|
|
2,534,710 |
|
|
|
(2)% |
|
|
|
3 % |
|
Total liabilities and equity |
|
|
$25,644,604 |
|
|
|
$24,613,078 |
|
|
|
$23,801,828 |
|
|
|
$23,649,994 |
|
|
|
$23,915,285 |
|
|
|
4 % |
|
|
|
7 % |
|
Certain previously reported amounts have been reclassified to agree with current presentation.
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. In 1Q14 FHN resolved the collateralized borrowings for three previously on-balance sheet consumer loan
securitizations. |
(f) |
1Q15, 4Q14 and 3Q14 decreases relate to shares repurchased under the share repurchase program. |
(g) |
Consists of preferred stock of subsidiaries. |
9
FHN CONSOLIDATED NET INTEREST INCOME (a)
Quarterly, Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q15 Changes vs. |
|
(Thousands) |
|
1Q15 |
|
|
4Q14 |
|
|
3Q14 |
|
|
2Q14 |
|
|
1Q14 |
|
|
4Q14 |
|
|
1Q14 |
|
|
|
|
|
|
|
|
|
Interest Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned income (b) |
|
|
$146,192 |
|
|
|
$148,078 |
|
|
|
$146,931 |
|
|
|
$144,975 |
|
|
|
$140,487 |
|
|
|
(1)% |
|
|
|
4 % |
|
Loans held-for-sale |
|
|
1,491 |
|
|
|
1,483 |
|
|
|
3,263 |
|
|
|
3,209 |
|
|
|
3,215 |
|
|
|
1 % |
|
|
|
(54)% |
|
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. treasuries |
|
|
- |
|
|
|
- |
|
|
|
5 |
|
|
|
7 |
|
|
|
5 |
|
|
|
NM |
|
|
|
NM |
|
U.S. government agencies |
|
|
20,955 |
|
|
|
21,317 |
|
|
|
21,376 |
|
|
|
21,530 |
|
|
|
20,837 |
|
|
|
(2)% |
|
|
|
1 % |
|
States and municipalities |
|
|
125 |
|
|
|
159 |
|
|
|
109 |
|
|
|
97 |
|
|
|
117 |
|
|
|
(21)% |
|
|
|
7 % |
|
Other |
|
|
1,876 |
|
|
|
1,875 |
|
|
|
1,866 |
|
|
|
2,103 |
|
|
|
2,281 |
|
|
|
* |
|
|
|
(18)% |
|
Total investment securities |
|
|
22,956 |
|
|
|
23,351 |
|
|
|
23,356 |
|
|
|
23,737 |
|
|
|
23,240 |
|
|
|
(2)% |
|
|
|
(1)% |
|
Trading securities |
|
|
9,281 |
|
|
|
8,701 |
|
|
|
7,944 |
|
|
|
7,839 |
|
|
|
8,222 |
|
|
|
7 % |
|
|
|
13 % |
|
Other earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold |
|
|
57 |
|
|
|
69 |
|
|
|
92 |
|
|
|
73 |
|
|
|
53 |
|
|
|
(17)% |
|
|
|
8 % |
|
Securities purchased under agreements to resell (c) |
|
|
(252) |
|
|
|
(217) |
|
|
|
(363) |
|
|
|
(218) |
|
|
|
(192) |
|
|
|
(16)% |
|
|
|
(31)% |
|
Interest-bearing cash |
|
|
874 |
|
|
|
611 |
|
|
|
134 |
|
|
|
182 |
|
|
|
546 |
|
|
|
43 % |
|
|
|
60 % |
|
Total other earning assets |
|
|
679 |
|
|
|
463 |
|
|
|
(137) |
|
|
|
37 |
|
|
|
407 |
|
|
|
47 % |
|
|
|
67 % |
|
Interest income |
|
|
$180,599 |
|
|
|
$182,076 |
|
|
|
$181,357 |
|
|
|
$179,797 |
|
|
|
$175,571 |
|
|
|
(1)% |
|
|
|
3 % |
|
|
|
|
|
|
|
|
|
Interest Expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings |
|
|
$3,307 |
|
|
|
$3,087 |
|
|
|
$2,600 |
|
|
|
$2,792 |
|
|
|
$3,083 |
|
|
|
7 % |
|
|
|
7 % |
|
Other interest-bearing deposits |
|
|
957 |
|
|
|
760 |
|
|
|
754 |
|
|
|
746 |
|
|
|
818 |
|
|
|
26 % |
|
|
|
17 % |
|
Time deposits (d) |
|
|
1,432 |
|
|
|
1,742 |
|
|
|
1,786 |
|
|
|
2,486 |
|
|
|
3,062 |
|
|
|
(18)% |
|
|
|
(53)% |
|
Total interest-bearing core deposits |
|
|
5,696 |
|
|
|
5,589 |
|
|
|
5,140 |
|
|
|
6,024 |
|
|
|
6,963 |
|
|
|
2 % |
|
|
|
(18)% |
|
Certificates of deposit $100,000 and more (e) |
|
|
882 |
|
|
|
513 |
|
|
|
685 |
|
|
|
869 |
|
|
|
1,023 |
|
|
|
72 % |
|
|
|
(14)% |
|
Federal funds purchased |
|
|
673 |
|
|
|
729 |
|
|
|
654 |
|
|
|
683 |
|
|
|
726 |
|
|
|
(8)% |
|
|
|
(7)% |
|
Securities sold under agreements to repurchase |
|
|
95 |
|
|
|
83 |
|
|
|
63 |
|
|
|
109 |
|
|
|
118 |
|
|
|
14 % |
|
|
|
(19)% |
|
Capital markets trading liabilities |
|
|
3,914 |
|
|
|
3,950 |
|
|
|
3,782 |
|
|
|
4,087 |
|
|
|
3,571 |
|
|
|
(1)% |
|
|
|
10 % |
|
Other short-term borrowings |
|
|
278 |
|
|
|
388 |
|
|
|
548 |
|
|
|
403 |
|
|
|
261 |
|
|
|
(28)% |
|
|
|
7 % |
|
Term borrowings (f) |
|
|
9,664 |
|
|
|
9,146 |
|
|
|
8,445 |
|
|
|
8,416 |
|
|
|
8,563 |
|
|
|
6 % |
|
|
|
13 % |
|
Interest expense |
|
|
21,202 |
|
|
|
20,398 |
|
|
|
19,317 |
|
|
|
20,591 |
|
|
|
21,225 |
|
|
|
4 % |
|
|
|
* |
|
Net interest income - tax equivalent basis |
|
|
159,397 |
|
|
|
161,678 |
|
|
|
162,040 |
|
|
|
159,206 |
|
|
|
154,346 |
|
|
|
(1)% |
|
|
|
3 % |
|
Fully taxable equivalent adjustment |
|
|
(2,531) |
|
|
|
(2,628) |
|
|
|
(2,499) |
|
|
|
(2,438) |
|
|
|
(1,987) |
|
|
|
4 % |
|
|
|
(27)% |
|
Net interest income |
|
|
$156,866 |
|
|
|
$159,050 |
|
|
|
$159,541 |
|
|
|
$156,768 |
|
|
|
$152,359 |
|
|
|
(1)% |
|
|
|
3 % |
|
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) |
1Q15 includes the effect of amortizing the premium valuation adjustment for acquired time deposits related to branch acquisitions. |
(e) |
Prior to 1Q15 includes the effect of amortizing the premium valuation adjustment for acquired time deposits related to acquisitions. |
(f) |
4Q14 increase related to the issuance of $400 million of senior notes. |
10
FHN CONSOLIDATED AVERAGE BALANCE SHEET: YIELDS AND RATES
Quarterly, Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q15 |
|
|
4Q14 |
|
|
3Q14 |
|
|
2Q14 |
|
|
1Q14 |
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning assets (a): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned income (b): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans |
|
|
3.50 % |
|
|
|
3.55 % |
|
|
|
3.51 % |
|
|
|
3.59 % |
|
|
|
3.60 % |
|
Retail loans |
|
|
3.96 |
|
|
|
3.97 |
|
|
|
4.01 |
|
|
|
4.06 |
|
|
|
4.01 |
|
Total loans, net of unearned income (c) |
|
|
3.67 |
|
|
|
3.71 |
|
|
|
3.70 |
|
|
|
3.78 |
|
|
|
3.77 |
|
Loans held-for-sale |
|
|
4.31 |
|
|
|
4.12 |
|
|
|
4.09 |
|
|
|
3.61 |
|
|
|
3.50 |
|
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. treasuries |
|
|
NM |
|
|
|
NM |
|
|
|
0.07 |
|
|
|
0.07 |
|
|
|
0.05 |
|
U.S. government agencies |
|
|
2.47 |
|
|
|
2.54 |
|
|
|
2.56 |
|
|
|
2.59 |
|
|
|
2.59 |
|
States and municipalities |
|
|
3.46 |
|
|
|
4.38 |
|
|
|
2.50 |
|
|
|
1.99 |
|
|
|
2.41 |
|
Other |
|
|
4.13 |
|
|
|
4.13 |
|
|
|
4.04 |
|
|
|
4.44 |
|
|
|
4.31 |
|
Total investment securities |
|
|
2.56 |
|
|
|
2.62 |
|
|
|
2.61 |
|
|
|
2.65 |
|
|
|
2.66 |
|
Trading securities |
|
|
2.71 |
|
|
|
2.94 |
|
|
|
3.00 |
|
|
|
2.80 |
|
|
|
2.97 |
|
Other earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold |
|
|
0.97 |
|
|
|
1.02 |
|
|
|
0.98 |
|
|
|
1.00 |
|
|
|
0.99 |
|
Securities purchased under agreements to resell (d) |
|
|
(0.13) |
|
|
|
(0.13) |
|
|
|
(0.22) |
|
|
|
(0.13) |
|
|
|
(0.13) |
|
Interest-bearing cash |
|
|
0.24 |
|
|
|
0.24 |
|
|
|
0.19 |
|
|
|
0.20 |
|
|
|
0.23 |
|
Total other earning assets |
|
|
0.12 |
|
|
|
0.11 |
|
|
|
(0.06) |
|
|
|
0.01 |
|
|
|
0.10 |
|
Interest income/total earning assets |
|
|
3.11 % |
|
|
|
3.22 % |
|
|
|
3.33 % |
|
|
|
3.35 % |
|
|
|
3.27 % |
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings |
|
|
0.18 % |
|
|
|
0.18 % |
|
|
|
0.16 % |
|
|
|
0.17 % |
|
|
|
0.19 % |
|
Other interest-bearing deposits |
|
|
0.09 |
|
|
|
0.08 |
|
|
|
0.08 |
|
|
|
0.08 |
|
|
|
0.09 |
|
Time deposits(e) |
|
|
0.71 |
|
|
|
0.83 |
|
|
|
0.90 |
|
|
|
1.16 |
|
|
|
1.34 |
|
Total interest-bearing core deposits |
|
|
0.18 |
|
|
|
0.19 |
|
|
|
0.19 |
|
|
|
0.22 |
|
|
|
0.25 |
|
Certificates of deposit $100,000 and more (f) |
|
|
0.84 |
|
|
|
0.45 |
|
|
|
0.59 |
|
|
|
0.68 |
|
|
|
0.76 |
|
Federal funds purchased |
|
|
0.25 |
|
|
|
0.25 |
|
|
|
0.25 |
|
|
|
0.25 |
|
|
|
0.25 |
|
Securities sold under agreements to repurchase |
|
|
0.08 |
|
|
|
0.07 |
|
|
|
0.06 |
|
|
|
0.10 |
|
|
|
0.11 |
|
Capital markets trading liabilities |
|
|
2.18 |
|
|
|
2.47 |
|
|
|
2.41 |
|
|
|
2.44 |
|
|
|
2.39 |
|
Other short-term borrowings |
|
|
0.68 |
|
|
|
0.51 |
|
|
|
0.20 |
|
|
|
0.30 |
|
|
|
0.57 |
|
Term borrowings (g) |
|
|
2.39 |
|
|
|
2.20 |
|
|
|
2.25 |
|
|
|
2.24 |
|
|
|
2.01 |
|
Interest expense/total interest-bearing liabilities |
|
|
0.50 |
|
|
|
0.50 |
|
|
|
0.48 |
|
|
|
0.52 |
|
|
|
0.53 |
|
Net interest spread |
|
|
2.61 % |
|
|
|
2.72 % |
|
|
|
2.85 % |
|
|
|
2.83 % |
|
|
|
2.74 % |
|
Effect of interest-free sources used to fund earning assets |
|
|
0.13 |
|
|
|
0.14 |
|
|
|
0.12 |
|
|
|
0.14 |
|
|
|
0.14 |
|
Net interest margin |
|
|
2.74 % |
|
|
|
2.86 % |
|
|
|
2.97 % |
|
|
|
2.97 % |
|
|
|
2.88 % |
|
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) |
1Q15 rate includes the effect of amortizing the premium valuation adjustment for acquired time deposits related to branch acquisitions. |
(f) |
Rates prior to 1Q15 include the effect of amortizing the premium valuation adjustment for acquired time deposits related to acquisitions. |
(g) |
Rates are expressed net of unamortized debenture cost for term borrowings. |
11
FHN CAPITAL HIGHLIGHTS
Quarterly, Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q15 Changes vs. |
|
(Dollars and shares in thousands) |
|
1Q15 |
|
|
4Q14 |
|
|
3Q14 |
|
|
2Q14 |
|
|
1Q14 |
|
|
4Q14 |
|
|
1Q14 |
|
|
|
|
|
|
|
|
|
Common equity tier 1 capital (a) (c) |
|
|
2,133,336 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
NM |
|
|
|
NM |
|
Tier 1 capital (a) (b) (c) |
|
|
2,452,075 |
|
|
|
$2,813,503 |
|
|
|
$2,783,147 |
|
|
|
$2,751,933 |
|
|
|
$2,666,486 |
|
|
|
(13)% |
|
|
|
(8)% |
|
|
|
|
|
|
|
|
|
Total capital (a) (d) |
|
|
2,912,360 |
|
|
|
$3,148,336 |
|
|
|
$3,121,359 |
|
|
|
$3,092,212 |
|
|
|
$3,048,105 |
|
|
|
(7)% |
|
|
|
(4)% |
|
Risk-weighted assets (RWA) (a) |
|
|
20,795,400 |
|
|
|
$19,452,656 |
|
|
|
$19,238,109 |
|
|
|
$19,400,096 |
|
|
|
$18,694,719 |
|
|
|
7% |
|
|
|
11% |
|
Average assets for leverage (a) (c) |
|
|
25,569,095 |
|
|
|
$24,625,820 |
|
|
|
$23,748,667 |
|
|
|
$23,579,425 |
|
|
|
$23,828,049 |
|
|
|
4% |
|
|
|
7% |
|
|
|
|
|
|
|
|
|
Common equity tier 1 ratio (a) (c) |
|
|
10.26% |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
|
|
|
|
|
|
Tier 1 ratio (a) (c) |
|
|
11.79% |
|
|
|
14.46 % |
|
|
|
14.47 % |
|
|
|
14.19 % |
|
|
|
14.26 % |
|
|
|
|
|
|
|
|
|
Total capital ratio (a) |
|
|
14.00% |
|
|
|
16.18 % |
|
|
|
16.22 % |
|
|
|
15.94 % |
|
|
|
16.30 % |
|
|
|
|
|
|
|
|
|
Leverage ratio (a) |
|
|
9.59% |
|
|
|
11.43 % |
|
|
|
11.72 % |
|
|
|
11.67 % |
|
|
|
11.19 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 common to risk-weighted assets (c) (e) |
|
|
N/A |
|
|
|
11.43 % |
|
|
|
11.40 % |
|
|
|
11.14 % |
|
|
|
11.10 % |
|
|
|
|
|
|
|
|
|
Total equity to total assets |
|
|
9.72 % |
|
|
|
10.06 % |
|
|
|
10.90 % |
|
|
|
10.82 % |
|
|
|
10.61 % |
|
|
|
|
|
|
|
|
|
Tangible common equity/tangible assets (TCE/TA) (e) |
|
|
7.57 % |
|
|
|
7.90 % |
|
|
|
8.66 % |
|
|
|
8.60 % |
|
|
|
8.36 % |
|
|
|
|
|
|
|
|
|
Period-end shares outstanding (f) |
|
|
233,499 |
|
|
|
234,220 |
|
|
|
235,249 |
|
|
|
237,147 |
|
|
|
236,586 |
|
|
|
* |
|
|
|
(1) % |
|
Cash dividends declared per common share |
|
|
$0.06 |
|
|
|
$0.05 |
|
|
|
$0.05 |
|
|
|
$0.05 |
|
|
|
$0.05 |
|
|
|
20 % |
|
|
|
20 % |
|
Book value per common share |
|
|
$9.03 |
|
|
|
$9.35 |
|
|
|
$9.45 |
|
|
|
$9.41 |
|
|
|
$9.09 |
|
|
|
|
|
|
|
|
|
Tangible book value per common share (e) |
|
|
$8.28 |
|
|
|
$8.60 |
|
|
|
$8.77 |
|
|
|
$8.72 |
|
|
|
$8.40 |
|
|
|
|
|
|
|
|
|
Market capitalization (millions) |
|
|
$3,336.7 |
|
|
|
$3,180.7 |
|
|
|
$2,888.9 |
|
|
|
$2,812.6 |
|
|
|
$2,919.5 |
|
|
|
|
|
|
|
|
|
Certain previously reported amounts have been reclassified to agree with current presentation.
* |
Amount is less than one percent. |
(a) |
Current quarter is an estimate and reflects revisions to regulatory capital definitions under the new Basel III risk-based capital rules as phased-in. |
(b) |
1Q15 includes $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) |
1Q15 includes $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) |
1Q15, 4Q14 and 3Q14 decreases relate to shares purchased under the share repurchase program. |
12
FHN BUSINESS SEGMENT HIGHLIGHTS
Quarterly, Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q15 Changes vs. |
|
(Thousands) |
|
1Q15 |
|
|
4Q14 |
|
|
3Q14 |
|
|
2Q14 |
|
|
1Q14 |
|
|
4Q14 |
|
|
1Q14 |
|
|
|
|
|
|
|
|
|
Regional Banking |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
$154,409 |
|
|
|
$157,557 |
|
|
|
$153,868 |
|
|
|
$148,675 |
|
|
|
$142,026 |
|
|
|
(2)% |
|
|
|
9% |
|
Noninterest income |
|
|
60,204 |
|
|
|
64,331 |
|
|
|
64,155 |
|
|
|
66,227 |
|
|
|
59,992 |
|
|
|
(6)% |
|
|
|
* |
|
Total revenues |
|
|
214,613 |
|
|
|
221,888 |
|
|
|
218,023 |
|
|
|
214,902 |
|
|
|
202,018 |
|
|
|
(3)% |
|
|
|
6% |
|
Provision for loan losses |
|
|
4,915 |
|
|
|
5,568 |
|
|
|
2,204 |
|
|
|
8,425 |
|
|
|
12,990 |
|
|
|
(12)% |
|
|
|
(62)% |
|
Noninterest expense |
|
|
135,780 |
|
|
|
137,546 |
|
|
|
135,903 |
|
|
|
132,996 |
|
|
|
132,543 |
|
|
|
(1)% |
|
|
|
2% |
|
Income before income taxes |
|
|
73,918 |
|
|
|
78,774 |
|
|
|
79,916 |
|
|
|
73,481 |
|
|
|
56,485 |
|
|
|
(6)% |
|
|
|
31% |
|
Provision for income taxes |
|
|
26,381 |
|
|
|
28,057 |
|
|
|
28,561 |
|
|
|
26,070 |
|
|
|
20,083 |
|
|
|
(6)% |
|
|
|
31% |
|
Net income |
|
|
$47,537 |
|
|
|
$50,717 |
|
|
|
$51,355 |
|
|
|
$47,411 |
|
|
|
$36,402 |
|
|
|
(6)% |
|
|
|
31% |
|
|
|
|
|
|
|
|
|
Capital Markets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
$4,323 |
|
|
|
$3,675 |
|
|
|
$2,950 |
|
|
|
$2,587 |
|
|
|
$3,476 |
|
|
|
18% |
|
|
|
24% |
|
Noninterest income |
|
|
61,565 |
|
|
|
48,506 |
|
|
|
49,896 |
|
|
|
47,564 |
|
|
|
56,759 |
|
|
|
27% |
|
|
|
8% |
|
Total revenues |
|
|
65,888 |
|
|
|
52,181 |
|
|
|
52,846 |
|
|
|
50,151 |
|
|
|
60,235 |
|
|
|
26% |
|
|
|
9% |
|
Noninterest expense (a) |
|
|
54,683 |
|
|
|
46,218 |
|
|
|
47,915 |
|
|
|
116 |
|
|
|
52,598 |
|
|
|
18% |
|
|
|
4% |
|
Income before income taxes |
|
|
11,205 |
|
|
|
5,963 |
|
|
|
4,931 |
|
|
|
50,035 |
|
|
|
7,637 |
|
|
|
88% |
|
|
|
47% |
|
Provision for income taxes |
|
|
4,167 |
|
|
|
2,059 |
|
|
|
1,696 |
|
|
|
19,143 |
|
|
|
2,843 |
|
|
|
NM |
|
|
|
47% |
|
Net income |
|
|
$7,038 |
|
|
|
$3,904 |
|
|
|
$3,235 |
|
|
|
$30,892 |
|
|
|
$4,794 |
|
|
|
80% |
|
|
|
47% |
|
|
|
|
|
|
|
|
|
Corporate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income/(expense) |
|
|
$(16,084) |
|
|
|
$(18,038) |
|
|
|
$(14,246) |
|
|
|
$(11,968) |
|
|
|
$(9,923) |
|
|
|
11% |
|
|
|
(62)% |
|
Noninterest income |
|
|
5,385 |
|
|
|
4,400 |
|
|
|
4,139 |
|
|
|
5,215 |
|
|
|
13,215 |
|
|
|
22% |
|
|
|
(59)% |
|
Total revenues |
|
|
(10,699) |
|
|
|
(13,638) |
|
|
|
(10,107) |
|
|
|
(6,753) |
|
|
|
3,292 |
|
|
|
22% |
|
|
|
NM |
|
Noninterest expense |
|
|
14,169 |
|
|
|
14,017 |
|
|
|
16,511 |
|
|
|
13,532 |
|
|
|
17,327 |
|
|
|
1% |
|
|
|
(18)% |
|
Loss before income taxes |
|
|
(24,868) |
|
|
|
(27,655) |
|
|
|
(26,618) |
|
|
|
(20,285) |
|
|
|
(14,035) |
|
|
|
10% |
|
|
|
(77)% |
|
Benefit for income taxes |
|
|
(11,640) |
|
|
|
(19,601) |
|
|
|
(16,928) |
|
|
|
(16,369) |
|
|
|
(10,628) |
|
|
|
41% |
|
|
|
(10)% |
|
Net loss |
|
|
$(13,228) |
|
|
|
$(8,054) |
|
|
|
$(9,690) |
|
|
|
$(3,916) |
|
|
|
$(3,407) |
|
|
|
(64)% |
|
|
|
NM |
|
|
|
|
|
|
|
|
|
Non-Strategic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
$14,218 |
|
|
|
$15,856 |
|
|
|
$16,969 |
|
|
|
$17,474 |
|
|
|
$16,780 |
|
|
|
(10)% |
|
|
|
(15)% |
|
Noninterest income (b) |
|
|
2,535 |
|
|
|
2,361 |
|
|
|
39,625 |
|
|
|
7,895 |
|
|
|
15,764 |
|
|
|
7% |
|
|
|
(84)% |
|
Total revenues |
|
|
16,753 |
|
|
|
18,217 |
|
|
|
56,594 |
|
|
|
25,369 |
|
|
|
32,544 |
|
|
|
(8)% |
|
|
|
(49)% |
|
Provision/(provision credit) for loan losses |
|
|
85 |
|
|
|
432 |
|
|
|
3,796 |
|
|
|
(3,425) |
|
|
|
(2,990) |
|
|
|
(80)% |
|
|
|
NM |
|
Noninterest expense (c) |
|
|
171,589 |
|
|
|
9,528 |
|
|
|
43,687 |
|
|
|
16,518 |
|
|
|
15,576 |
|
|
|
NM |
|
|
|
NM |
|
Income/(loss) before income taxes |
|
|
(154,921) |
|
|
|
8,257 |
|
|
|
9,111 |
|
|
|
12,276 |
|
|
|
19,958 |
|
|
|
NM |
|
|
|
NM |
|
Provision/(benefit) for income taxes |
|
|
(41,169) |
|
|
|
3,184 |
|
|
|
3,513 |
|
|
|
4,734 |
|
|
|
7,768 |
|
|
|
NM |
|
|
|
NM |
|
Net income/(loss) |
|
|
$(113,752) |
|
|
|
$5,073 |
|
|
|
$5,598 |
|
|
|
$7,542 |
|
|
|
$12,190 |
|
|
|
NM |
|
|
|
NM |
|
|
|
|
|
|
|
|
|
Total Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
$156,866 |
|
|
|
$159,050 |
|
|
|
$159,541 |
|
|
|
$156,768 |
|
|
|
$152,359 |
|
|
|
(1)% |
|
|
|
3% |
|
Noninterest income |
|
|
129,689 |
|
|
|
119,598 |
|
|
|
157,815 |
|
|
|
126,901 |
|
|
|
145,730 |
|
|
|
8% |
|
|
|
(11)% |
|
Total revenues |
|
|
286,555 |
|
|
|
278,648 |
|
|
|
317,356 |
|
|
|
283,669 |
|
|
|
298,089 |
|
|
|
3% |
|
|
|
(4)% |
|
Provision for loan losses |
|
|
5,000 |
|
|
|
6,000 |
|
|
|
6,000 |
|
|
|
5,000 |
|
|
|
10,000 |
|
|
|
(17)% |
|
|
|
(50)% |
|
Noninterest expense |
|
|
376,221 |
|
|
|
207,309 |
|
|
|
244,016 |
|
|
|
163,162 |
|
|
|
218,044 |
|
|
|
81% |
|
|
|
73% |
|
Income/(loss) before income taxes |
|
|
(94,666) |
|
|
|
65,339 |
|
|
|
67,340 |
|
|
|
115,507 |
|
|
|
70,045 |
|
|
|
NM |
|
|
|
NM |
|
Provision/(benefit) for income taxes |
|
|
(22,261) |
|
|
|
13,699 |
|
|
|
16,842 |
|
|
|
33,578 |
|
|
|
20,066 |
|
|
|
NM |
|
|
|
NM |
|
Net income/(loss) |
|
|
$(72,405) |
|
|
|
$51,640 |
|
|
|
$50,498 |
|
|
|
$81,929 |
|
|
|
$49,979 |
|
|
|
NM |
|
|
|
NM |
|
Certain previously reported amounts have been reclassified to agree with current presentation.
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 an AIP to settle potential claims related to FHNs 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. |
13
FHN REGIONAL BANKING
Quarterly, Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q15 Changes vs. |
|
|
|
1Q15 |
|
|
4Q14 |
|
|
3Q14 |
|
|
2Q14 |
|
|
1Q14 |
|
|
4Q14 |
|
|
1Q14 |
|
|
|
|
|
|
|
|
|
Income Statement (thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
$154,409 |
|
|
|
$157,557 |
|
|
|
$153,868 |
|
|
|
$148,675 |
|
|
|
$142,026 |
|
|
|
(2)% |
|
|
|
9% |
|
Provision for loan losses |
|
|
4,915 |
|
|
|
5,568 |
|
|
|
2,204 |
|
|
|
8,425 |
|
|
|
12,990 |
|
|
|
(12)% |
|
|
|
(62)% |
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NSF / Overdraft fees (a) |
|
|
9,144 |
|
|
|
11,619 |
|
|
|
11,425 |
|
|
|
10,636 |
|
|
|
9,156 |
|
|
|
(21)% |
|
|
|
* |
|
Cash management fees |
|
|
8,878 |
|
|
|
8,719 |
|
|
|
8,522 |
|
|
|
8,537 |
|
|
|
8,916 |
|
|
|
2% |
|
|
|
* |
|
Debit card income |
|
|
3,064 |
|
|
|
3,117 |
|
|
|
2,945 |
|
|
|
2,934 |
|
|
|
2,655 |
|
|
|
(2)% |
|
|
|
15% |
|
Other |
|
|
4,537 |
|
|
|
4,655 |
|
|
|
4,705 |
|
|
|
4,850 |
|
|
|
4,864 |
|
|
|
(3)% |
|
|
|
(7)% |
|
Total deposit transactions and cash management |
|
|
25,623 |
|
|
|
28,110 |
|
|
|
27,597 |
|
|
|
26,957 |
|
|
|
25,591 |
|
|
|
(9)% |
|
|
|
* |
|
Brokerage, management fees and commissions |
|
|
11,399 |
|
|
|
11,647 |
|
|
|
12,333 |
|
|
|
12,844 |
|
|
|
12,276 |
|
|
|
(2)% |
|
|
|
(7)% |
|
Trust services and investment management |
|
|
6,713 |
|
|
|
6,960 |
|
|
|
6,794 |
|
|
|
7,325 |
|
|
|
6,760 |
|
|
|
(4)% |
|
|
|
(1)% |
|
Bankcard income (b) |
|
|
4,915 |
|
|
|
5,469 |
|
|
|
5,224 |
|
|
|
7,648 |
|
|
|
4,255 |
|
|
|
(10)% |
|
|
|
16% |
|
Other service charges |
|
|
2,422 |
|
|
|
2,395 |
|
|
|
2,630 |
|
|
|
2,628 |
|
|
|
2,356 |
|
|
|
1% |
|
|
|
3% |
|
Miscellaneous revenue |
|
|
9,132 |
|
|
|
9,750 |
|
|
|
9,577 |
|
|
|
8,825 |
|
|
|
8,754 |
|
|
|
(6)% |
|
|
|
4% |
|
Total noninterest income |
|
|
60,204 |
|
|
|
64,331 |
|
|
|
64,155 |
|
|
|
66,227 |
|
|
|
59,992 |
|
|
|
(6)% |
|
|
|
* |
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee compensation, incentives, and benefits |
|
|
48,272 |
|
|
|
46,175 |
|
|
|
46,259 |
|
|
|
46,055 |
|
|
|
44,945 |
|
|
|
5% |
|
|
|
7% |
|
Other |
|
|
87,508 |
|
|
|
91,371 |
|
|
|
89,644 |
|
|
|
86,941 |
|
|
|
87,598 |
|
|
|
(4)% |
|
|
|
* |
|
Total noninterest expense |
|
|
135,780 |
|
|
|
137,546 |
|
|
|
135,903 |
|
|
|
132,996 |
|
|
|
132,543 |
|
|
|
(1)% |
|
|
|
2% |
|
Income before income taxes |
|
|
$73,918 |
|
|
|
$78,774 |
|
|
|
$79,916 |
|
|
|
$73,481 |
|
|
|
$56,485 |
|
|
|
(6)% |
|
|
|
31% |
|
PPNR (Non-GAAP) (c) |
|
|
78,833 |
|
|
|
84,342 |
|
|
|
82,120 |
|
|
|
81,906 |
|
|
|
69,475 |
|
|
|
(7)% |
|
|
|
13% |
|
Efficiency ratio (d) |
|
|
63.27% |
|
|
|
61.99% |
|
|
|
62.33% |
|
|
|
61.89% |
|
|
|
65.61% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet (millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loans |
|
|
$13,513 |
|
|
|
$13,129 |
|
|
|
$12,886 |
|
|
|
$12,372 |
|
|
|
$11,897 |
|
|
|
3% |
|
|
|
14% |
|
Average other earning assets |
|
|
48 |
|
|
|
52 |
|
|
|
63 |
|
|
|
57 |
|
|
|
50 |
|
|
|
(8)% |
|
|
|
(4)% |
|
Total average earning assets |
|
|
13,561 |
|
|
|
13,181 |
|
|
|
12,949 |
|
|
|
12,429 |
|
|
|
11,947 |
|
|
|
3% |
|
|
|
14% |
|
Average core deposits |
|
|
16,263 |
|
|
|
15,335 |
|
|
|
14,639 |
|
|
|
14,808 |
|
|
|
14,857 |
|
|
|
6% |
|
|
|
9% |
|
Average other deposits |
|
|
423 |
|
|
|
452 |
|
|
|
464 |
|
|
|
513 |
|
|
|
546 |
|
|
|
(6)% |
|
|
|
(23)% |
|
Total average deposits |
|
|
16,686 |
|
|
|
15,787 |
|
|
|
15,103 |
|
|
|
15,321 |
|
|
|
15,403 |
|
|
|
6% |
|
|
|
8% |
|
Total period-end deposits |
|
|
17,240 |
|
|
|
16,373 |
|
|
|
15,119 |
|
|
|
15,418 |
|
|
|
15,723 |
|
|
|
5% |
|
|
|
10% |
|
Total period-end assets |
|
|
14,894 |
|
|
|
14,350 |
|
|
|
13,695 |
|
|
|
13,700 |
|
|
|
12,889 |
|
|
|
4% |
|
|
|
16% |
|
Net interest margin (e) |
|
|
4.68% |
|
|
|
4.78% |
|
|
|
4.74% |
|
|
|
4.82% |
|
|
|
4.84% |
|
|
|
|
|
|
|
|
|
Net interest spread |
|
|
3.37 |
|
|
|
3.36 |
|
|
|
3.41 |
|
|
|
3.46 |
|
|
|
3.41 |
|
|
|
|
|
|
|
|
|
Loan yield |
|
|
3.51 |
|
|
|
3.50 |
|
|
|
3.56 |
|
|
|
3.63 |
|
|
|
3.61 |
|
|
|
|
|
|
|
|
|
Deposit average yield |
|
|
0.14 |
|
|
|
0.14 |
|
|
|
0.15 |
|
|
|
0.17 |
|
|
|
0.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Statistics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial center locations (f) |
|
|
178 |
|
|
|
178 |
|
|
|
172 |
|
|
|
172 |
|
|
|
172 |
|
|
|
* |
|
|
|
3% |
|
Certain previously reported amounts have been reclassified to agree with current presentation.
* Amount is less than one percent.
(a) |
1Q15 and 1Q14 levels primarily attributable to seasonality in NSF fees. |
(b) |
2Q14 includes $2.8 million of Visa volume incentives. |
(c) |
Pre-tax, pre-provision, net revenue is a Non-GAAP number and is calculated by adding the provision/(provision credit) for loan losses (GAAP) to Income before income taxes (GAAP). |
(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. |
14
FHN CAPITAL MARKETS
Quarterly, Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q15 Changes vs. |
|
|
|
1Q15 |
|
|
4Q14 |
|
|
3Q14 |
|
|
2Q14 |
|
|
1Q14 |
|
|
4Q14 |
|
|
1Q14 |
|
|
|
|
|
|
|
|
|
Income Statement (thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
$4,323 |
|
|
|
$3,675 |
|
|
|
$2,950 |
|
|
|
$2,587 |
|
|
|
$3,476 |
|
|
|
18 |
% |
|
|
24 |
% |
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed income |
|
|
53,510 |
|
|
|
39,030 |
|
|
|
41,216 |
|
|
|
40,457 |
|
|
|
49,614 |
|
|
|
37 |
% |
|
|
8 |
% |
Other |
|
|
8,055 |
|
|
|
9,476 |
|
|
|
8,680 |
|
|
|
7,107 |
|
|
|
7,145 |
|
|
|
(15 |
) % |
|
|
13 |
% |
Total noninterest income |
|
|
61,565 |
|
|
|
48,506 |
|
|
|
49,896 |
|
|
|
47,564 |
|
|
|
56,759 |
|
|
|
27 |
% |
|
|
8 |
% |
Noninterest expense (a) |
|
|
54,683 |
|
|
|
46,218 |
|
|
|
47,915 |
|
|
|
116 |
|
|
|
52,598 |
|
|
|
18 |
% |
|
|
4 |
% |
Income before income taxes |
|
|
$11,205 |
|
|
|
$5,963 |
|
|
|
$4,931 |
|
|
|
$50,035 |
|
|
|
$7,637 |
|
|
|
88 |
% |
|
|
47 |
% |
|
|
|
|
|
|
|
|
Efficiency ratio (b) |
|
|
82.99 |
% |
|
|
88.57 |
% |
|
|
90.67 |
% |
|
|
NM |
|
|
|
87.32 |
% |
|
|
|
|
|
|
|
|
Fixed income average daily revenue |
|
|
$877 |
|
|
|
$630 |
|
|
|
$644 |
|
|
|
$642 |
|
|
|
$813 |
|
|
|
39 |
% |
|
|
8 |
% |
Balance Sheet (millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average trading inventory |
|
|
$1,366 |
|
|
|
$1,177 |
|
|
|
$1,054 |
|
|
|
$1,112 |
|
|
|
$1,102 |
|
|
|
16 |
% |
|
|
24 |
% |
Average other earning assets |
|
|
781 |
|
|
|
677 |
|
|
|
648 |
|
|
|
668 |
|
|
|
628 |
|
|
|
15 |
% |
|
|
24 |
% |
Total average earning assets |
|
|
2,147 |
|
|
|
1,854 |
|
|
|
1,702 |
|
|
|
1,780 |
|
|
|
1,730 |
|
|
|
16 |
% |
|
|
24 |
% |
Total period-end assets |
|
|
2,808 |
|
|
|
2,138 |
|
|
|
2,338 |
|
|
|
2,197 |
|
|
|
2,095 |
|
|
|
31 |
% |
|
|
34 |
% |
Net interest margin (c) |
|
|
0.83 |
% |
|
|
0.85 |
% |
|
|
0.75 |
% |
|
|
0.61 |
% |
|
|
0.82 |
% |
|
|
|
|
|
|
|
|
Certain previously reported amounts have been reclassified to agree with current presentation.
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q15 Changes vs. |
|
|
|
1Q15 |
|
|
4Q14 |
|
|
3Q14 |
|
|
2Q14 |
|
|
1Q14 |
|
|
4Q14 |
|
|
1Q14 |
|
|
|
|
|
|
|
|
|
Income Statement (thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income/(expense) |
|
|
$(16,084) |
|
|
|
$(18,038) |
|
|
|
$(14,246) |
|
|
|
$(11,968) |
|
|
|
$(9,923) |
|
|
|
11% |
|
|
|
(62)% |
|
Noninterest income excluding securities gains/(losses) |
|
|
5,109 |
|
|
|
4,400 |
|
|
|
4,005 |
|
|
|
5,139 |
|
|
|
7,558 |
|
|
|
16% |
|
|
|
(32)% |
|
Securities gains/(losses), net (a) |
|
|
276 |
|
|
|
- |
|
|
|
134 |
|
|
|
76 |
|
|
|
5,657 |
|
|
|
NM |
|
|
|
(95)% |
|
Noninterest expense |
|
|
14,169 |
|
|
|
14,017 |
|
|
|
16,511 |
|
|
|
13,532 |
|
|
|
17,327 |
|
|
|
1% |
|
|
|
(18)% |
|
Loss before income taxes |
|
|
$(24,868) |
|
|
|
$(27,655) |
|
|
|
$(26,618) |
|
|
|
$(20,285) |
|
|
|
$(14,035) |
|
|
|
10% |
|
|
|
(77)% |
|
|
|
|
|
|
|
|
|
Average Balance Sheet (millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loans |
|
|
$138 |
|
|
|
$148 |
|
|
|
$153 |
|
|
|
$159 |
|
|
|
$169 |
|
|
|
(7)% |
|
|
|
(18)% |
|
Total earning assets |
|
|
$5,162 |
|
|
|
$4,703 |
|
|
|
$3,999 |
|
|
|
$4,082 |
|
|
|
$4,617 |
|
|
|
10% |
|
|
|
12% |
|
Net interest margin (b) |
|
|
(1.28)% |
|
|
|
(1.40)% |
|
|
|
(1.25)% |
|
|
|
(1.04)% |
|
|
|
(0.81)% |
|
|
|
|
|
|
|
|
|
Certain previously reported amounts have been reclassified to agree with current presentation.
NM - Not meaningful
(a) |
1Q14 includes a gain of $5.6 million on the sale of cost method investments. |
(b) |
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. |
15
FHN NON-STRATEGIC
Quarterly, Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q15 Changes vs. |
|
|
|
1Q15 |
|
|
4Q14 |
|
|
3Q14 |
|
|
2Q14 |
|
|
1Q14 |
|
|
4Q14 |
|
|
1Q14 |
|
|
|
|
|
|
|
|
|
Income Statement (thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
$14,218 |
|
|
|
$15,856 |
|
|
|
$16,969 |
|
|
|
$17,474 |
|
|
|
$16,780 |
|
|
|
(10)% |
|
|
|
(15)% |
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage warehouse valuation (a) |
|
|
1,228 |
|
|
|
1,240 |
|
|
|
41,287 |
|
|
|
8,213 |
|
|
|
1,045 |
|
|
|
(1)% |
|
|
|
18 % |
|
Miscellaneous revenue (b) |
|
|
1,307 |
|
|
|
1,121 |
|
|
|
(667) |
|
|
|
1,682 |
|
|
|
14,719 |
|
|
|
17 % |
|
|
|
(91)% |
|
Total noninterest income excluding securities gains/(losses) |
|
|
2,535 |
|
|
|
2,361 |
|
|
|
40,620 |
|
|
|
9,895 |
|
|
|
15,764 |
|
|
|
7 % |
|
|
|
(84)% |
|
Securities gains/(losses), net |
|
|
- |
|
|
|
- |
|
|
|
(995) |
|
|
|
(2,000) |
|
|
|
- |
|
|
|
NM |
|
|
|
NM |
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repurchase and foreclosure provision (c) |
|
|
- |
|
|
|
- |
|
|
|
(4,300) |
|
|
|
- |
|
|
|
- |
|
|
|
NM |
|
|
|
NM |
|
Other expenses (d) |
|
|
171,589 |
|
|
|
9,528 |
|
|
|
47,987 |
|
|
|
16,518 |
|
|
|
15,576 |
|
|
|
NM |
|
|
|
NM |
|
Total noninterest expense |
|
|
171,589 |
|
|
|
9,528 |
|
|
|
43,687 |
|
|
|
16,518 |
|
|
|
15,576 |
|
|
|
NM |
|
|
|
NM |
|
Provision/(provision credit) for loan losses |
|
|
85 |
|
|
|
432 |
|
|
|
3,796 |
|
|
|
(3,425) |
|
|
|
(2,990) |
|
|
|
(80)% |
|
|
|
NM |
|
Income/(loss) before income taxes |
|
|
$(154,921) |
|
|
|
$8,257 |
|
|
|
$9,111 |
|
|
|
$12,276 |
|
|
|
$19,958 |
|
|
|
NM |
|
|
|
NM |
|
|
|
|
|
|
|
|
|
Average Balance Sheet (millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
|
$2,472 |
|
|
|
$2,592 |
|
|
|
$2,724 |
|
|
|
$2,851 |
|
|
|
$2,993 |
|
|
|
(5)% |
|
|
|
(17)% |
|
Loans held-for-sale (e) |
|
|
120 |
|
|
|
125 |
|
|
|
298 |
|
|
|
335 |
|
|
|
344 |
|
|
|
(4)% |
|
|
|
(65)% |
|
Trading securities |
|
|
5 |
|
|
|
6 |
|
|
|
6 |
|
|
|
7 |
|
|
|
7 |
|
|
|
(17)% |
|
|
|
(29)% |
|
Allowance for loan losses |
|
|
(105) |
|
|
|
(110) |
|
|
|
(111) |
|
|
|
(117) |
|
|
|
(126) |
|
|
|
(5)% |
|
|
|
(17)% |
|
Other assets |
|
|
63 |
|
|
|
72 |
|
|
|
78 |
|
|
|
102 |
|
|
|
186 |
|
|
|
(13)% |
|
|
|
(66)% |
|
Total assets |
|
|
2,555 |
|
|
|
2,685 |
|
|
|
2,995 |
|
|
|
3,178 |
|
|
|
3,404 |
|
|
|
(5)% |
|
|
|
(25)% |
|
Net interest margin (f) |
|
|
2.19 % |
|
|
|
2.32 % |
|
|
|
2.23 % |
|
|
|
2.18 % |
|
|
|
2.01 % |
|
|
|
|
|
|
|
|
|
Efficiency ratio (g) |
|
|
NM |
|
|
|
52.30 % |
|
|
|
75.86 % |
|
|
|
60.35 % |
|
|
|
47.86 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage Warehouse - Period-end (millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending warehouse balance (loans held-for-sale) (e) |
|
|
$108 |
|
|
|
$115 |
|
|
|
$120 |
|
|
|
$330 |
|
|
|
$332 |
|
|
|
(6)% |
|
|
|
(67)% |
|
Key Servicing Metric |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending servicing portfolio (millions) (h) |
|
|
$966 |
|
|
|
$1,013 |
|
|
|
$1,090 |
|
|
|
$1,456 |
|
|
|
$1,679 |
|
|
|
(5)% |
|
|
|
(42)% |
|
Certain previously reported amounts have been reclassified to agree with current presentation.
NM - Not meaningful
(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) |
1Q14 includes the receipt of previously unrecognized servicing fees in conjunction with transfers of servicing in 1Q14. |
(c) |
3Q14 expense reversal associated with the settlement of certain repurchase claims. |
(d) |
1Q15 includes $162.5 million of loss accruals related to an AIP to settle potential claims related to FHNs 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 FHNs legacy mortgage banking business, legacy equity lending serviced for others, and mortgage loans in portfolio and warehouse. |
16
FHN ASSET QUALITY: CONSOLIDATED
Quarterly, Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q15 Changes vs. |
|
(Thousands) |
|
1Q15 |
|
|
4Q14 |
|
|
3Q14 |
|
|
2Q14 |
|
|
1Q14 |
|
|
4Q14 |
|
|
1Q14 |
|
|
|
|
|
|
|
|
|
Allowance for Loan Losses Walk-Forward |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning reserve |
|
|
$232,448 |
|
|
|
$238,641 |
|
|
|
$243,628 |
|
|
|
$247,246 |
|
|
|
$253,809 |
|
|
|
(3)% |
|
|
|
(8)% |
|
Provision |
|
|
5,000 |
|
|
|
6,000 |
|
|
|
6,000 |
|
|
|
5,000 |
|
|
|
10,000 |
|
|
|
(17)% |
|
|
|
(50)% |
|
Charge-offs |
|
|
(17,999) |
|
|
|
(23,306) |
|
|
|
(23,684) |
|
|
|
(18,764) |
|
|
|
(24,692) |
|
|
|
(23)% |
|
|
|
(27)% |
|
Recoveries |
|
|
8,879 |
|
|
|
11,113 |
|
|
|
12,697 |
|
|
|
10,146 |
|
|
|
8,129 |
|
|
|
(20)% |
|
|
|
9% |
|
Ending balance |
|
|
$228,328 |
|
|
|
$232,448 |
|
|
|
$238,641 |
|
|
|
$243,628 |
|
|
|
$247,246 |
|
|
|
(2)% |
|
|
|
(8)% |
|
Reserve for unfunded commitments |
|
|
4,135 |
|
|
|
4,770 |
|
|
|
2,313 |
|
|
|
2,209 |
|
|
|
2,882 |
|
|
|
(13)% |
|
|
|
43% |
|
Total allowance for loan losses plus reserve for unfunded commitments |
|
|
$232,463 |
|
|
|
$237,218 |
|
|
|
$240,954 |
|
|
|
$245,837 |
|
|
|
$250,128 |
|
|
|
(2)% |
|
|
|
(7)% |
|
|
|
|
|
|
|
|
|
Allowance for Loan Losses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional Banking |
|
|
$125,982 |
|
|
|
$126,812 |
|
|
|
$127,873 |
|
|
|
$131,801 |
|
|
|
$128,234 |
|
|
|
(1)% |
|
|
|
(2)% |
|
Non-Strategic |
|
|
102,346 |
|
|
|
105,636 |
|
|
|
110,768 |
|
|
|
111,827 |
|
|
|
119,012 |
|
|
|
(3)% |
|
|
|
(14)% |
|
Corporate (a) |
|
|
NM |
|
|
|
NM |
|
|
|
NM |
|
|
|
NM |
|
|
|
NM |
|
|
|
NM |
|
|
|
NM |
|
Total allowance for loan losses |
|
|
$228,328 |
|
|
|
$232,448 |
|
|
|
$238,641 |
|
|
|
$243,628 |
|
|
|
$247,246 |
|
|
|
(2)% |
|
|
|
(8)% |
|
|
|
|
|
|
|
|
|
Nonperforming Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional Banking |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans |
|
|
$63,620 |
|
|
|
$64,654 |
|
|
|
$70,805 |
|
|
|
$89,191 |
|
|
|
$83,275 |
|
|
|
(2)% |
|
|
|
(24)% |
|
Foreclosed real estate (b) |
|
|
19,704 |
|
|
|
20,451 |
|
|
|
25,404 |
|
|
|
26,598 |
|
|
|
27,705 |
|
|
|
(4)% |
|
|
|
(29)% |
|
Total Regional Banking |
|
|
$83,324 |
|
|
|
$85,105 |
|
|
|
$96,209 |
|
|
|
$115,789 |
|
|
|
$110,980 |
|
|
|
(2)% |
|
|
|
(25)% |
|
Non-Strategic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans (c) |
|
|
$133,804 |
|
|
|
$135,740 |
|
|
|
$139,038 |
|
|
|
$138,789 |
|
|
|
$153,972 |
|
|
|
(1)% |
|
|
|
(13)% |
|
Nonperforming loans held-for-sale after fair value adjustments (d) |
|
|
6,888 |
|
|
|
7,643 |
|
|
|
7,931 |
|
|
|
69,184 |
|
|
|
61,631 |
|
|
|
(10)% |
|
|
|
(89)% |
|
Foreclosed real estate (b) |
|
|
9,977 |
|
|
|
9,979 |
|
|
|
9,857 |
|
|
|
12,183 |
|
|
|
15,265 |
|
|
|
* |
|
|
|
(35)% |
|
Total Non-Strategic |
|
|
$150,669 |
|
|
|
$153,362 |
|
|
|
$156,826 |
|
|
|
$220,156 |
|
|
|
$230,868 |
|
|
|
(2)% |
|
|
|
(35)% |
|
Corporate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans |
|
|
$2,805 |
|
|
|
$3,045 |
|
|
|
$3,903 |
|
|
|
$3,636 |
|
|
|
$3,672 |
|
|
|
(8)% |
|
|
|
(24)% |
|
Total nonperforming assets |
|
|
$236,798 |
|
|
|
$241,512 |
|
|
|
$256,938 |
|
|
|
$339,581 |
|
|
|
$345,520 |
|
|
|
(2)% |
|
|
|
(31)% |
|
|
|
|
|
|
|
|
|
Net Charge-Offs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional Banking |
|
|
$5,745 |
|
|
|
$6,629 |
|
|
|
$6,132 |
|
|
|
$4,858 |
|
|
|
$5,783 |
|
|
|
(13)% |
|
|
|
(1)% |
|
Non-Strategic |
|
|
3,375 |
|
|
|
5,564 |
|
|
|
4,855 |
|
|
|
3,760 |
|
|
|
10,780 |
|
|
|
(39)% |
|
|
|
(69)% |
|
Total net charge-offs |
|
|
$9,120 |
|
|
|
$12,193 |
|
|
|
$10,987 |
|
|
|
$8,618 |
|
|
|
$16,563 |
|
|
|
(25)% |
|
|
|
(45)% |
|
|
|
|
|
|
|
|
|
Consolidated Key Ratios (e) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NPL % |
|
|
1.20 % |
|
|
|
1.25 % |
|
|
|
1.35 % |
|
|
|
1.47 % |
|
|
|
1.59 % |
|
|
|
|
|
|
|
|
|
NPA % |
|
|
1.37 |
|
|
|
1.44 |
|
|
|
1.57 |
|
|
|
1.71 |
|
|
|
1.87 |
|
|
|
|
|
|
|
|
|
Net charge-offs % |
|
|
0.23 |
|
|
|
0.30 |
|
|
|
0.28 |
|
|
|
0.22 |
|
|
|
0.45 |
|
|
|
|
|
|
|
|
|
Allowance / loans |
|
|
1.36 |
|
|
|
1.43 |
|
|
|
1.51 |
|
|
|
1.54 |
|
|
|
1.64 |
|
|
|
|
|
|
|
|
|
Allowance / NPL |
|
|
1.14 |
x |
|
|
1.14 |
x |
|
|
1.12 |
x |
|
|
1.05 |
x |
|
|
1.03 |
x |
|
|
|
|
|
|
|
|
Allowance / NPA |
|
|
0.99 |
x |
|
|
0.99 |
x |
|
|
0.96 |
x |
|
|
0.90 |
x |
|
|
0.87 |
x |
|
|
|
|
|
|
|
|
Allowance / charge-offs |
|
|
6.17 |
x |
|
|
4.81 |
x |
|
|
5.47 |
x |
|
|
7.05 |
x |
|
|
3.68 |
x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans past due 90 days or more (f) |
|
|
$46,889 |
|
|
|
$50,699 |
|
|
|
$57,786 |
|
|
|
$68,369 |
|
|
|
$63,747 |
|
|
|
(8)% |
|
|
|
(26)% |
|
Guaranteed portion (f) |
|
|
18,552 |
|
|
|
24,036 |
|
|
|
27,020 |
|
|
|
32,782 |
|
|
|
35,063 |
|
|
|
(23)% |
|
|
|
(47)% |
|
Foreclosed real estate from government insured loans |
|
|
10,096 |
|
|
|
9,492 |
|
|
|
12,735 |
|
|
|
18,771 |
|
|
|
23,065 |
|
|
|
6% |
|
|
|
(56)% |
|
Period-end loans, net of unearned income (millions) |
|
|
16,732 |
|
|
|
16,230 |
|
|
|
15,812 |
|
|
|
15,796 |
|
|
|
15,119 |
|
|
|
3% |
|
|
|
11% |
|
NM - Not meaningful
* Amount
is less than one percent.
(a) |
The valuation adjustment taken upon exercise of clean-up calls included expected losses. |
(b) |
Excludes foreclosed real estate from government-insured mortgages. |
(c) |
2Q14 decrease is primarily related to a TRUPS sale. |
(d) |
3Q14 decrease is related to the sale of held-for-sale mortgage loans. |
(e) |
See Glossary of Terms for definitions of Consolidated Key Ratios. |
(f) |
Includes loans held-for-sale. |
17
FHN ASSET QUALITY: CONSOLIDATED
Quarterly, Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q15 Changes vs. |
|
|
|
1Q15 |
|
|
4Q14 |
|
|
3Q14 |
|
|
2Q14 |
|
|
1Q14 |
|
|
4Q14 |
|
|
1Q14 |
|
|
|
|
|
|
|
|
|
Key Portfolio Details |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
C&I |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans ($ millions) |
|
|
$9,638 |
|
|
|
$9,007 |
|
|
|
$8,477 |
|
|
|
$8,403 |
|
|
|
$7,753 |
|
|
|
7% |
|
|
|
24% |
|
30+ Delinq. % (a) |
|
|
0.07 |
% |
|
|
0.05 |
% |
|
|
0.10 |
% |
|
|
0.19 |
% |
|
|
0.27 |
% |
|
|
|
|
|
|
|
|
NPL % |
|
|
0.35 |
|
|
|
0.36 |
|
|
|
0.49 |
|
|
|
0.58 |
|
|
|
0.68 |
|
|
|
|
|
|
|
|
|
Charge-offs % (qtr. annualized) |
|
|
0.07 |
|
|
|
0.19 |
|
|
|
NM |
|
|
|
0.20 |
|
|
|
0.22 |
|
|
|
|
|
|
|
|
|
Allowance / loans % |
|
|
0.70 |
% |
|
|
0.74 |
% |
|
|
0.82 |
% |
|
|
0.82 |
% |
|
|
0.94 |
% |
|
|
|
|
|
|
|
|
Allowance / charge-offs |
|
|
10.41 |
x |
|
|
4.05 |
x |
|
|
NM |
|
|
|
4.35 |
x |
|
|
4.27 |
x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real Estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans ($ millions) |
|
|
$1,321 |
|
|
|
$1,278 |
|
|
|
$1,278 |
|
|
|
$1,232 |
|
|
|
$1,152 |
|
|
|
3% |
|
|
|
15% |
|
30+ Delinq. % (a) |
|
|
0.33 |
% |
|
|
0.14 |
% |
|
|
0.33 |
% |
|
|
1.10 |
% |
|
|
1.61 |
% |
|
|
|
|
|
|
|
|
NPL % |
|
|
1.01 |
|
|
|
1.20 |
|
|
|
1.11 |
|
|
|
1.14 |
|
|
|
1.30 |
|
|
|
|
|
|
|
|
|
Charge-offs % (qtr. annualized) |
|
|
0.03 |
|
|
|
NM |
|
|
|
0.47 |
|
|
|
NM |
|
|
|
0.12 |
|
|
|
|
|
|
|
|
|
Allowance / loans % |
|
|
1.34 |
% |
|
|
1.45 |
% |
|
|
1.21 |
% |
|
|
1.28 |
% |
|
|
1.35 |
% |
|
|
|
|
|
|
|
|
Allowance / charge-offs |
|
|
45.39 |
x |
|
|
NM |
|
|
|
2.64 |
x |
|
|
NM |
|
|
|
10.97 |
x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Real Estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans ($ millions) |
|
|
$4,923 |
|
|
|
$5,048 |
|
|
|
$5,131 |
|
|
|
$5,219 |
|
|
|
$5,258 |
|
|
|
(2)% |
|
|
|
(6)% |
|
30+ Delinq. % (a) |
|
|
0.98 |
% |
|
|
1.10 |
% |
|
|
1.04 |
% |
|
|
0.93 |
% |
|
|
1.01 |
% |
|
|
|
|
|
|
|
|
NPL % |
|
|
2.43 |
|
|
|
2.39 |
|
|
|
2.41 |
|
|
|
2.51 |
|
|
|
2.51 |
|
|
|
|
|
|
|
|
|
Charge-offs % (qtr. annualized) |
|
|
0.31 |
|
|
|
0.38 |
|
|
|
0.60 |
|
|
|
0.20 |
|
|
|
0.56 |
|
|
|
|
|
|
|
|
|
Allowance / loans % |
|
|
2.22 |
% |
|
|
2.24 |
% |
|
|
2.31 |
% |
|
|
2.26 |
% |
|
|
2.35 |
% |
|
|
|
|
|
|
|
|
Allowance / charge-offs |
|
|
7.06 |
x |
|
|
5.85 |
x |
|
|
3.83 |
x |
|
|
11.30 |
x |
|
|
4.17 |
x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Permanent Mortgage |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans ($ millions) |
|
|
$512 |
|
|
|
$539 |
|
|
|
$573 |
|
|
|
$594 |
|
|
|
$622 |
|
|
|
(5)% |
|
|
|
(18)% |
|
30+ Delinq. % (a) |
|
|
2.76 |
% |
|
|
1.72 |
% |
|
|
2.73 |
% |
|
|
1.71 |
% |
|
|
1.44 |
% |
|
|
|
|
|
|
|
|
NPL % |
|
|
6.43 |
|
|
|
6.32 |
|
|
|
5.93 |
|
|
|
6.23 |
|
|
|
6.46 |
|
|
|
|
|
|
|
|
|
Charge-offs % (qtr. annualized) |
|
|
0.44 |
|
|
|
1.00 |
|
|
|
0.25 |
|
|
|
0.12 |
|
|
|
1.04 |
|
|
|
|
|
|
|
|
|
Allowance / loans % |
|
|
3.94 |
% |
|
|
3.55 |
% |
|
|
3.53 |
% |
|
|
3.99 |
% |
|
|
3.62 |
% |
|
|
|
|
|
|
|
|
Allowance / charge-offs |
|
|
8.80 |
x |
|
|
3.46 |
x |
|
|
14.17 |
x |
|
|
31.85 |
x |
|
|
3.39 |
x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit Card and Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans ($ millions) |
|
|
$338 |
|
|
|
$358 |
|
|
|
$353 |
|
|
|
$348 |
|
|
|
$334 |
|
|
|
(6)% |
|
|
|
1% |
|
30+ Delinq. % (a) |
|
|
1.20 |
% |
|
|
1.42 |
% |
|
|
1.44 |
% |
|
|
1.39 |
% |
|
|
1.30 |
% |
|
|
|
|
|
|
|
|
NPL % |
|
|
0.22 |
|
|
|
0.21 |
|
|
|
0.20 |
|
|
|
0.39 |
|
|
|
0.42 |
|
|
|
|
|
|
|
|
|
Charge-offs % (qtr. annualized) |
|
|
3.51 |
|
|
|
3.33 |
|
|
|
3.19 |
|
|
|
3.35 |
|
|
|
3.71 |
|
|
|
|
|
|
|
|
|
Allowance / loans % |
|
|
4.01 |
% |
|
|
4.11 |
% |
|
|
4.17 |
% |
|
|
5.01 |
% |
|
|
3.91 |
% |
|
|
|
|
|
|
|
|
Allowance / charge-offs |
|
|
1.10 |
x |
|
|
1.24 |
x |
|
|
1.31 |
x |
|
|
1.51 |
x |
|
|
1.05 |
x |
|
|
|
|
|
|
|
|
NM - Not meaningful
(a) |
30+ Delinquency % includes all accounts delinquent more than one month and still accruing interest. |
18
FHN ASSET QUALITY: REGIONAL BANKING
Quarterly, Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q15 Changes vs. |
|
|
|
1Q15 |
|
|
4Q14 |
|
|
3Q14 |
|
|
2Q14 |
|
|
1Q14 |
|
|
4Q14 |
|
|
1Q14 |
|
Total Regional Banking |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans ($ millions) |
|
|
$14,200 |
|
|
|
$13,568 |
|
|
|
$13,002 |
|
|
|
$12,853 |
|
|
|
$12,042 |
|
|
|
5 % |
|
|
|
18 |
% |
30+ Delinq. % (a) |
|
|
0.24 |
% |
|
|
0.22 |
% |
|
|
0.29 |
% |
|
|
0.43 |
% |
|
|
0.52 |
% |
|
|
|
|
|
|
|
|
NPL % |
|
|
0.45 |
|
|
|
0.48 |
|
|
|
0.54 |
|
|
|
0.69 |
|
|
|
0.69 |
|
|
|
|
|
|
|
|
|
Charge-offs % (qtr. annualized) |
|
|
0.17 |
|
|
|
0.20 |
|
|
|
0.19 |
|
|
|
0.16 |
|
|
|
0.20 |
|
|
|
|
|
|
|
|
|
Allowance / loans % |
|
|
0.89 |
% |
|
|
0.93 |
% |
|
|
0.98 |
% |
|
|
1.03 |
% |
|
|
1.06 |
% |
|
|
|
|
|
|
|
|
Allowance / charge-offs |
|
|
5.41 |
x |
|
|
4.82 |
x |
|
|
5.26 |
x |
|
|
6.76 |
x |
|
|
5.47 |
x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Portfolio Details |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
C&I |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans ($ millions) |
|
|
$9,185 |
|
|
|
$8,553 |
|
|
|
$8,022 |
|
|
|
$7,947 |
|
|
|
$7,287 |
|
|
|
7 |
% |
|
|
26 |
% |
30+ Delinq. % (a) |
|
|
0.07 |
% |
|
|
0.05 |
% |
|
|
0.09 |
% |
|
|
0.20 |
% |
|
|
0.26% |
|
|
|
|
|
|
|
|
|
NPL % |
|
|
0.24 |
|
|
|
0.24 |
|
|
|
0.37 |
|
|
|
0.57 |
|
|
|
0.55 |
|
|
|
|
|
|
|
|
|
Charge-offs % (qtr. annualized) |
|
|
0.08 |
|
|
|
0.21 |
|
|
|
NM |
|
|
|
0.09 |
|
|
|
0.07 |
|
|
|
|
|
|
|
|
|
Allowance / loans % |
|
|
0.68 |
% |
|
|
0.72 |
% |
|
|
0.81 |
% |
|
|
0.84 |
% |
|
|
0.93 |
% |
|
|
|
|
|
|
|
|
Allowance / charge-offs |
|
|
9.42 |
x |
|
|
3.62 |
x |
|
|
NM |
|
|
|
10.12 |
x |
|
|
13.74 |
x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real Estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans ($ millions) |
|
|
$1,320 |
|
|
|
$1,273 |
|
|
|
$1,274 |
|
|
|
$1,226 |
|
|
|
$1,145 |
|
|
|
4 |
% |
|
|
15 |
% |
30+ Delinq. % (a) (b) |
|
|
0.32 |
% |
|
|
0.14 |
% |
|
|
0.33 |
% |
|
|
1.10 |
% |
|
|
1.62 |
% |
|
|
|
|
|
|
|
|
NPL % |
|
|
1.00 |
|
|
|
1.14 |
|
|
|
1.04 |
|
|
|
1.06 |
|
|
|
1.05 |
|
|
|
|
|
|
|
|
|
Charge-offs % (qtr. annualized) |
|
|
0.03 |
|
|
|
NM |
|
|
|
0.49 |
|
|
|
NM |
|
|
|
0.10 |
|
|
|
|
|
|
|
|
|
Allowance / loans % |
|
|
1.33 |
% |
|
|
1.43 |
% |
|
|
1.18 |
% |
|
|
1.25 |
% |
|
|
1.31 |
% |
|
|
|
|
|
|
|
|
Allowance / charge-offs |
|
|
52.33 |
x |
|
|
NM |
|
|
|
2.46 |
x |
|
|
NM |
|
|
|
13.38 |
x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Real Estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans ($ millions) |
|
|
$3,358 |
|
|
|
$3,385 |
|
|
|
$3,356 |
|
|
|
$3,334 |
|
|
|
$3,280 |
|
|
|
(1) |
% |
|
|
2 |
% |
30+ Delinq. % (a) |
|
|
0.55 |
% |
|
|
0.57 |
% |
|
|
0.61 |
% |
|
|
0.64 |
% |
|
|
0.62 |
% |
|
|
|
|
|
|
|
|
NPL % |
|
|
0.84 |
|
|
|
0.86 |
|
|
|
0.83 |
|
|
|
0.90 |
|
|
|
0.92 |
|
|
|
|
|
|
|
|
|
Charge-offs % (qtr. annualized) |
|
|
0.15 |
|
|
|
0.11 |
|
|
|
0.39 |
|
|
|
0.18 |
|
|
|
0.18 |
|
|
|
|
|
|
|
|
|
Allowance / loans % |
|
|
0.97 |
% |
|
|
0.95 |
% |
|
|
0.99 |
% |
|
|
0.97 |
% |
|
|
0.99 |
% |
|
|
|
|
|
|
|
|
Allowance / charge-offs |
|
|
6.45 |
x |
|
|
8.55 |
x |
|
|
2.55 |
x |
|
|
5.32 |
x |
|
|
5.42 |
x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit Card, Permanent Mortgage, and Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans ($ millions) |
|
|
$337 |
|
|
|
$357 |
|
|
|
$351 |
|
|
|
$346 |
|
|
|
$330 |
|
|
|
(6) |
% |
|
|
2 |
% |
30+ Delinq. % (a) |
|
|
1.29 |
% |
|
|
1.51 |
% |
|
|
1.49 |
% |
|
|
1.43 |
% |
|
|
1.38 |
% |
|
|
|
|
|
|
|
|
NPL % |
|
|
0.15 |
|
|
|
0.14 |
|
|
|
0.15 |
|
|
|
0.14 |
|
|
|
0.27 |
|
|
|
|
|
|
|
|
|
Charge-offs % (qtr. annualized) |
|
|
3.22 |
|
|
|
3.00 |
|
|
|
3.01 |
|
|
|
3.05 |
|
|
|
3.43 |
|
|
|
|
|
|
|
|
|
Allowance / loans % |
|
|
3.88 |
% |
|
|
4.06 |
% |
|
|
4.07 |
% |
|
|
4.98 |
% |
|
|
3.91 |
% |
|
|
|
|
|
|
|
|
Allowance / charge-offs |
|
|
1.16 |
x |
|
|
1.36 |
x |
|
|
1.36 |
x |
|
|
1.64 |
x |
|
|
1.13 |
x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY: CORPORATE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Permanent Mortgage |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans ($ millions) |
|
|
$123 |
|
|
|
$136 |
|
|
|
$147 |
|
|
|
$155 |
|
|
|
$164 |
|
|
|
(10) |
% |
|
|
(25) |
% |
30+ Delinq. % (a) |
|
|
3.41 |
% |
|
|
2.32 |
% |
|
|
2.24 |
% |
|
|
1.91 |
% |
|
|
1.83 |
% |
|
|
|
|
|
|
|
|
NPL % |
|
|
2.29 |
|
|
|
2.25 |
|
|
|
2.65 |
|
|
|
2.34 |
|
|
|
2.24 |
|
|
|
|
|
|
|
|
|
Charge-offs % (qtr. annualized) |
|
|
NM |
|
|
|
NM |
|
|
|
NM |
|
|
|
NM |
|
|
|
NM |
|
|
|
|
|
|
|
|
|
Allowance / loans % |
|
|
NM |
|
|
|
NM |
|
|
|
NM |
|
|
|
NM |
|
|
|
NM |
|
|
|
|
|
|
|
|
|
Allowance / charge-offs |
|
|
NM |
|
|
|
NM |
|
|
|
NM |
|
|
|
NM |
|
|
|
NM |
|
|
|
|
|
|
|
|
|
NM - Not meaningful
(a) |
30+ Delinquency % includes all accounts delinquent more than one month and still accruing interest. |
(b) |
1Q15 increase was primarily driven by one relationship |
19
FHN ASSET QUALITY: NON-STRATEGIC
Quarterly, Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q15 Changes vs. |
|
|
1Q15 |
|
|
4Q14 |
|
|
3Q14 |
|
|
2Q14 |
|
|
1Q14 |
|
|
4Q14 |
|
|
1Q14 |
|
|
|
|
|
|
|
|
Total Non-Strategic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans ($ millions) |
|
|
$2,409 |
|
|
|
$2,527 |
|
|
|
$2,663 |
|
|
|
$2,788 |
|
|
|
$2,913 |
|
|
|
(5)% |
|
|
(17)% |
30+ Delinq. % (a) |
|
|
1.67 |
% |
|
|
1.67 |
% |
|
|
1.73 |
% |
|
|
1.24 |
% |
|
|
1.38 |
% |
|
|
|
|
|
|
NPL % (b) |
|
|
5.55 |
|
|
|
5.37 |
|
|
|
5.22 |
|
|
|
4.98 |
|
|
|
5.28 |
|
|
|
|
|
|
|
Charge-offs % (qtr. annualized) |
|
|
0.55 |
|
|
|
0.85 |
|
|
|
0.71 |
|
|
|
0.53 |
|
|
|
1.46 |
|
|
|
|
|
|
|
Allowance / loans % |
|
|
4.25 |
% |
|
|
4.18 |
% |
|
|
4.16 |
% |
|
|
4.01 |
% |
|
|
4.08 |
% |
|
|
|
|
|
|
Allowance / charge-offs |
|
|
7.48 |
x |
|
|
4.79 |
x |
|
|
5.75 |
x |
|
|
7.41 |
x |
|
|
2.72 |
x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Portfolio Details |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
C&I |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans ($ millions) |
|
|
$453 |
|
|
|
$454 |
|
|
|
$456 |
|
|
|
$456 |
|
|
|
$466 |
|
|
|
* |
|
|
(3)% |
30+ Delinq. % (a) |
|
|
0.08 |
% |
|
|
0.05 |
% |
|
|
0.23 |
% |
|
|
0.02 |
% |
|
|
0.43 |
% |
|
|
|
|
|
|
NPL % (b) |
|
|
2.68 |
|
|
|
2.64 |
|
|
|
2.64 |
|
|
|
0.58 |
|
|
|
2.64 |
|
|
|
|
|
|
|
Charge-offs % (qtr. annualized) |
|
|
NM |
|
|
|
NM |
|
|
|
NM |
|
|
|
1.99 |
|
|
|
2.48 |
|
|
|
|
|
|
|
Allowance / loans % |
|
|
1.09 |
% |
|
|
1.10 |
% |
|
|
1.01 |
% |
|
|
0.38 |
% |
|
|
1.02 |
% |
|
|
|
|
|
|
Allowance / charge-offs |
|
|
NM |
|
|
|
NM |
|
|
|
NM |
|
|
|
0.19 |
x |
|
|
0.39 |
x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real Estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans ($ millions) |
|
|
$1 |
|
|
|
$5 |
|
|
|
$5 |
|
|
|
$5 |
|
|
|
$7 |
|
|
|
(80)% |
|
|
(86)% |
30+ Delinq. % (a) |
|
|
14.87 |
% |
|
|
- |
% |
|
|
- |
% |
|
|
- |
% |
|
|
- |
% |
|
|
|
|
|
|
NPL % |
|
|
18.31 |
|
|
|
17.47 |
|
|
|
20.01 |
|
|
|
19.34 |
|
|
|
40.93 |
|
|
|
|
|
|
|
Charge-offs % (qtr. annualized) |
|
|
2.64 |
|
|
|
6.91 |
|
|
|
NM |
|
|
|
NM |
|
|
|
3.46 |
|
|
|
|
|
|
|
Allowance / loans % |
|
|
8.22 |
% |
|
|
9.25 |
% |
|
|
9.36 |
% |
|
|
9.41 |
% |
|
|
7.43 |
% |
|
|
|
|
|
|
Allowance / charge-offs |
|
|
1.06 |
x |
|
|
1.27 |
x |
|
|
NM |
|
|
|
NM |
|
|
|
1.80 |
x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Real Estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans ($ millions) |
|
|
$1,565 |
|
|
|
$1,663 |
|
|
|
$1,775 |
|
|
|
$1,885 |
|
|
|
$1,978 |
|
|
|
(6)% |
|
|
(21)% |
30+ Delinq. % (a) |
|
|
1.92 |
% |
|
|
2.17 |
% |
|
|
1.84 |
% |
|
|
1.45 |
% |
|
|
1.65 |
% |
|
|
|
|
|
|
NPL % |
|
|
5.83 |
|
|
|
5.51 |
|
|
|
5.40 |
|
|
|
5.35 |
|
|
|
5.14 |
|
|
|
|
|
|
|
Charge-offs % (qtr. annualized) |
|
|
0.64 |
|
|
|
0.91 |
|
|
|
0.98 |
|
|
|
0.23 |
|
|
|
1.17 |
|
|
|
|
|
|
|
Allowance / loans % |
|
|
4.90 |
% |
|
|
4.86 |
% |
|
|
4.79 |
% |
|
|
4.54 |
% |
|
|
4.60 |
% |
|
|
|
|
|
|
Allowance / charge-offs |
|
|
7.36 |
x |
|
|
5.19 |
x |
|
|
4.76 |
x |
|
|
19.65 |
x |
|
|
3.86 |
x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Permanent Mortgage |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans ($ millions) |
|
|
$379 |
|
|
|
$393 |
|
|
|
$415 |
|
|
|
$427 |
|
|
|
$446 |
|
|
|
(4)% |
|
|
(15)% |
30+ Delinq. % (a) |
|
|
2.50 |
% |
|
|
1.40 |
% |
|
|
2.88 |
% |
|
|
1.59 |
% |
|
|
1.21 |
% |
|
|
|
|
|
|
NPL % |
|
|
7.82 |
|
|
|
7.78 |
|
|
|
7.13 |
|
|
|
7.71 |
|
|
|
7.99 |
|
|
|
|
|
|
|
Charge-offs % (qtr. annualized) |
|
|
0.59 |
|
|
|
1.44 |
|
|
|
0.29 |
|
|
|
0.15 |
|
|
|
1.46 |
|
|
|
|
|
|
|
Allowance / loans % |
|
|
5.32 |
% |
|
|
4.83 |
% |
|
|
4.84 |
% |
|
|
5.52 |
% |
|
|
5.00 |
% |
|
|
|
|
|
|
Allowance / charge-offs |
|
|
8.82 |
x |
|
|
3.30 |
x |
|
|
16.57 |
x |
|
|
35.18 |
x |
|
|
3.36 |
x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans ($ millions) |
|
|
$11 |
|
|
|
$12 |
|
|
|
$12 |
|
|
|
$15 |
|
|
|
$16 |
|
|
|
(8)% |
|
|
(31)% |
30+ Delinq. % (a) |
|
|
1.40 |
% |
|
|
2.48 |
% |
|
|
2.24 |
% |
|
|
1.79 |
% |
|
|
1.95 |
% |
|
|
|
|
|
|
NPL % |
|
|
6.66 |
|
|
|
6.22 |
|
|
|
5.38 |
|
|
|
9.16 |
|
|
|
9.03 |
|
|
|
|
|
|
|
Charge-offs % (qtr. annualized) |
|
|
9.24 |
|
|
|
8.21 |
|
|
|
6.74 |
|
|
|
7.81 |
|
|
|
6.83 |
|
|
|
|
|
|
|
Allowance / loans % |
|
|
4.69 |
% |
|
|
3.43 |
% |
|
|
4.48 |
% |
|
|
2.94 |
% |
|
|
2.12 |
% |
|
|
|
|
|
|
Allowance / charge-offs |
|
|
0.49 |
x |
|
|
0.41 |
x |
|
|
0.63 |
x |
|
|
0.36 |
x |
|
|
0.30 |
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; 2Q14 NPL decrease related to TRUPS sales. |
20
FHN: PORTFOLIO METRICS
Unaudited
|
|
|
|
|
|
|
C&I Portfolio: $9.6 Billion (57.6% of Total Loans) as of March 31, 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 (29.4% of Total Loans)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Origination LTV and FICO for Portfolio as of March 31, 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 |
% |
|
|
|
9% |
|
FICO score 720-739 |
|
|
|
2% |
|
|
|
|
4 |
% |
|
|
|
4 |
% |
|
|
|
3% |
|
FICO score 700-719 |
|
|
|
1% |
|
|
|
|
3 |
% |
|
|
|
4 |
% |
|
|
|
2% |
|
FICO score 660-699 |
|
|
|
1% |
|
|
|
|
4 |
% |
|
|
|
3 |
% |
|
|
|
3% |
|
FICO score 620-659 |
|
|
|
1% |
|
|
|
|
1 |
% |
|
|
|
1 |
% |
|
|
|
1% |
|
FICO score less than 620 |
|
|
|
-% |
|
|
|
|
1 |
% |
|
|
|
- |
% |
|
|
|
1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Origination LTV and FICO for Portfolio - Regional Bank as of March 31, 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 |
% |
|
|
|
11 |
% |
FICO score 720-739 |
|
|
|
1 |
% |
|
|
|
4 |
% |
|
|
|
4 |
% |
|
|
|
3 |
% |
FICO score 700-719 |
|
|
|
1 |
% |
|
|
|
3 |
% |
|
|
|
2 |
% |
|
|
|
2 |
% |
FICO score 660-699 |
|
|
|
1 |
% |
|
|
|
3 |
% |
|
|
|
3 |
% |
|
|
|
2 |
% |
FICO score 620-659 |
|
|
|
1 |
% |
|
|
|
1 |
% |
|
|
|
1 |
% |
|
|
|
1 |
% |
FICO score less than 620 |
|
|
|
- |
% |
|
|
|
1 |
% |
|
|
|
- |
% |
|
|
|
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Origination LTV and FICO for Portfolio - Non-Strategic as of March 31, 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 |
% |
|
|
|
6 |
% |
|
|
|
6 |
% |
|
|
|
2 |
% |
FICO score 660-699 |
|
|
|
2 |
% |
|
|
|
5 |
% |
|
|
|
4 |
% |
|
|
|
3 |
% |
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 |
|
158 |
|
78% |
|
702 |
|
42% |
|
30% |
2003 |
|
$0.1 |
|
141 |
|
77% |
|
718 |
|
30% |
|
36% |
2004 |
|
$0.3 |
|
128 |
|
80% |
|
720 |
|
19% |
|
27% |
2005 |
|
$0.5 |
|
116 |
|
81% |
|
728 |
|
16% |
|
16% |
2006 |
|
$0.5 |
|
105 |
|
79% |
|
732 |
|
22% |
|
18% |
2007 |
|
$0.5 |
|
93 |
|
81% |
|
737 |
|
26% |
|
19% |
2008 |
|
$0.2 |
|
82 |
|
75% |
|
745 |
|
72% |
|
50% |
2009 |
|
$0.1 |
|
70 |
|
72% |
|
748 |
|
87% |
|
57% |
2010 |
|
$0.2 |
|
56 |
|
80% |
|
750 |
|
91% |
|
73% |
2011 |
|
$0.4 |
|
44 |
|
77% |
|
759 |
|
89% |
|
86% |
2012 |
|
$0.7 |
|
33 |
|
77% |
|
763 |
|
90% |
|
91% |
2013 |
|
$0.6 |
|
22 |
|
78% |
|
756 |
|
86% |
|
85% |
2014 |
|
$0.6 |
|
9 |
|
81% |
|
757 |
|
86% |
|
89% |
2015 |
|
$0.1 |
|
1 |
|
77% |
|
757 |
|
86% |
|
91% |
Total |
|
$4.9 |
|
66 |
|
79% |
|
745 |
|
60% |
|
57% |
(a) |
745 average portfolio origination FICO; 739 weighted average portfolio FICO (refreshed). |
21
FHN NON-GAAP TO GAAP RECONCILIATION
Quarterly, Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars and shares in thousands, except per share data) |
|
1Q15 |
|
|
4Q14 |
|
|
3Q14 |
|
|
2Q14 |
|
|
1Q14 |
|
Tangible Common Equity (Non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A) Total equity (GAAP) |
|
|
$2,499,257 |
|
|
|
$2,581,590 |
|
|
|
$2,614,908 |
|
|
|
$2,621,462 |
|
|
|
$2,541,792 |
|
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 |
|
|
$2,108,202 |
|
|
|
$2,190,535 |
|
|
|
$2,223,853 |
|
|
|
$2,230,407 |
|
|
|
$2,150,737 |
|
Less: Intangible assets (GAAP) (b) |
|
|
174,152 |
|
|
|
175,450 |
|
|
|
160,987 |
|
|
|
161,968 |
|
|
|
162,950 |
|
(C) Tangible common equity (Non-GAAP) |
|
|
$1,934,050 |
|
|
|
$2,015,085 |
|
|
|
$2,062,866 |
|
|
|
$2,068,439 |
|
|
|
$1,987,787 |
|
|
|
|
|
|
|
Tangible Assets (Non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(D) Total assets (GAAP) |
|
|
$25,715,888 |
|
|
|
$25,668,187 |
|
|
|
$23,985,691 |
|
|
|
$24,224,532 |
|
|
|
$23,946,116 |
|
Less: Intangible assets (GAAP) (b) |
|
|
174,152 |
|
|
|
175,450 |
|
|
|
160,987 |
|
|
|
161,968 |
|
|
|
162,950 |
|
(E) Tangible assets (Non-GAAP) |
|
|
$25,541,736 |
|
|
|
$25,492,737 |
|
|
|
$23,824,704 |
|
|
|
$24,062,564 |
|
|
|
$23,783,166 |
|
|
|
|
|
|
|
Period-end Shares Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(F) Period-end shares outstanding |
|
|
233,499 |
|
|
|
234,220 |
|
|
|
235,249 |
|
|
|
237,147 |
|
|
|
236,586 |
|
|
|
|
|
|
|
Tier 1 Common (Non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(G) Tier 1 capital (c) (d) |
|
|
$2,452,075 |
|
|
|
$2,813,503 |
|
|
|
$2,783,147 |
|
|
|
$2,751,933 |
|
|
|
$2,666,486 |
|
Less: Noncontrolling interest - FTBNA preferred stock (a) (e) |
|
|
N/A |
|
|
|
294,816 |
|
|
|
294,816 |
|
|
|
294,816 |
|
|
|
294,816 |
|
Less: Preferred Stock |
|
|
N/A |
|
|
|
95,624 |
|
|
|
95,624 |
|
|
|
95,624 |
|
|
|
95,624 |
|
Less: Trust preferred (f) |
|
|
N/A |
|
|
|
200,000 |
|
|
|
200,000 |
|
|
|
200,000 |
|
|
|
200,000 |
|
(H) Tier 1 common (Non-GAAP) |
|
|
N/A |
|
|
|
$2,223,063 |
|
|
|
$2,192,707 |
|
|
|
$2,161,493 |
|
|
|
$2,076,046 |
|
|
|
|
|
|
|
Risk Weighted Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(I) Risk weighted assets (c) (d) |
|
|
$20,795,400 |
|
|
|
$19,452,656 |
|
|
|
$19,238,109 |
|
|
|
$19,400,096 |
|
|
|
$18,694,719 |
|
|
|
|
|
|
|
Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(C)/(E) Tangible common equity to tangible assets (TCE/TA) (Non-GAAP) |
|
|
7.57 |
% |
|
|
7.90 |
% |
|
|
8.66 |
% |
|
|
8.60 |
% |
|
|
8.36 % |
|
(A)/(D) Total equity to total assets (GAAP) |
|
|
9.72 |
% |
|
|
10.06 |
% |
|
|
10.90 |
% |
|
|
10.82 |
% |
|
|
10.61 % |
|
(C)/(F) Tangible book value per common share (Non-GAAP) |
|
|
$8.28 |
|
|
|
$8.60 |
|
|
|
$8.77 |
|
|
|
$8.72 |
|
|
|
$8.40 |
|
(B)/(F) Book value per common share (GAAP) |
|
|
$9.03 |
|
|
|
$9.35 |
|
|
|
$9.45 |
|
|
|
$9.41 |
|
|
|
$9.09 |
|
(H)/(I) Tier 1 common to risk weighted assets (Non-GAAP) (c) |
|
|
N/A |
|
|
|
11.43 |
% |
|
|
11.40 |
% |
|
|
11.14 |
% |
|
|
11.10 % |
|
(G)/(D) Tier 1 capital to total assets (GAAP) (c) |
|
|
9.54 |
% |
|
|
10.96 |
% |
|
|
11.60 |
% |
|
|
11.36 |
% |
|
|
11.14 % |
|
|
|
|
|
|
|
Net Income Available to Common Shareholders Excluding Litigation Charges
(Non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income/(loss) before income taxes (GAAP) |
|
|
$(94,666) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Litigation and regulatory matters expense (GAAP) |
|
|
(162,500) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income/(loss) before income taxes (Non-GAAP) |
|
|
67,834 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted provision/(benefit) for income taxes (Non-GAAP) (g) |
|
|
21,754 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income/(loss) (Non-GAAP) |
|
|
46,080 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to noncontrolling interest (GAAP) |
|
|
2,758 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock dividends (GAAP) |
|
|
1,550 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income/(loss) available to common shareholders (Non-GAAP) |
|
|
$41,772 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted shares (thousands) (Non-GAAP) (h) |
|
|
235,120 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted EPS (Non-GAAP) |
|
|
$0.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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) |
Current quarter is an estimate and reflects revisions to regulatory capital definitions under the new Basel III risk-based capital rules as phased-in. |
(d) |
Defined by and calculated in conformity with bank regulations. |
(e) |
Represents FTBNA preferred stock included in noncontrolling interest. |
(f) |
Included in Term borrowings on the Consolidated Balance Sheet. |
(g) |
Calculated using an effective tax rate of 32.07 percent. |
(h) |
Because FHN recognized a net loss available to common shareholders in first quarter 2015, potentially issuable shares are excluded from diluted shares because they are antidilutive. Excluding the litigation charge, FHN
would have recognized net income available to common shareholders. As a result, adjusted shares are presented in order to include the dilute impact of potentially issuable shares. |
22
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 companys 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, capital markets, and
corporate as FHNs 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 companys 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 borrowers 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 creditors
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.
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).
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.
23
|
First Horizon
National Corporation First Quarter 2015 Earnings
April 17, 2015
Exhibit 99.2 |
|
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
All
Non-GAAP
numbers
are
reconciled
in
the
appendix.
1
Regional
Banking
pre-tax
pre-provision
net
revenue
is
a
Non-GAAP
number.
2
EPS
and
expenses
excluding
litigation
charge
are
Non-GAAP
numbers.
3
Revenue
excluding
positive
impact
of
mortgage
servicing
sale
was
$278mm
in
1Q14
and
excludes
$20mm
of
previously
unrecognized
servicing
fees
associated
with
the
MSR
sale.
This
number
is
Non-GAAP.
Regional Bank Pre-Tax, Pre-Provision Net Revenue (PPNR) up 13% year over
year
1
Regional Bank average loan growth of 14% year over year
Regional Bank average core deposits up 9% year over year
Capital markets
pre-tax income increased ~50% year over year
EPS,
excluding
litigation
charge,
at
$0.18
2
First Quarter 2015 Accomplishments
Core Business
Strength
Improving
Productivity
& Efficiency
Deploying Capital
Prudently
Reached an agreement in principle with DOJ/HUD to settle potential claims
on FHA loans
Improved Regional Bank efficiency ratio 234 bps year over year
Revenues, excluding positive impact of mortgage servicing sale, up 3% year
over year
3
Expenses,
excluding
litigation
charge,
declined
2%
year
over
year
2
Repurchased $16 million or 1 million common shares in 1Q15
TrustAtlantic acquisition progressing |
|
1Q15 Consolidated
Financial Results 6
Net Interest Income
Fee Income
Expense
NIAC
Excluding
Litigation
Charge
(Non-GAAP)
1
$ in millions, except EPS
Financial Results
1Q15
$157
Loan Loss Provision
$130
$376
$5
$(77)
$(0.33)
1Q15 vs
+$5
-$16
+$158
-$5
-$122
-$0.52
4Q14
$159
$120
$207
$6
$47
$0.20
1Q14
$152
$146
$218
$10
$46
$0.19
4Q14
-$2
+$10
+$169
-$1
-$124
-$0.53
1Q14
Actuals
Revenue,
excluding
positive
impact
of
mortgage
servicing
sale,
up
3%
linked
quarter
and
year
over
year
2
Expense,
excluding
litigation
charge,
up
3%
linked
quarter
and
down
2%
year
over
year
1
Total average loans up 2% linked quarter and 7% year over year
Total average core deposits up 7% linked quarter and 11% year over year
Net interest income slightly down linked quarter due to fewer days in 1Q15 but up 3% year over
year Loan
loss
provision
of
$5mm
with
NCOs
of
$9mm
in
1Q15
vs
$6mm
of
provision
and
$12mm
of
NCOs
in
4Q14
Common
Equity
Tier
1
(CET1)
of
10.3%
3
Net Income Available to Common Shareholders (NIAC)
Expense
Excluding
Litigation
Charge
(Non-GAAP)
1
$214
EPS
$42
EPS
Excluding
Litigation
Charge
(Non-GAAP)
1
$0.18
Adjusted Financial Results
$46
$0.19
$207
$47
$0.20
$218
-$4
-$4
-$0.01
+$7
-$5
-$0.02
EPS
excluding
DOJ/HUD
settlement
is
based
on
diluted
share
count
of
235mm
FHN
would
have
reported
assuming
net
income
available
to
common
instead
of
net
loss
available
to
common.
Numbers
may
not
add
to
total
due
to
rounding.
1
Expense,
NIAC
and
EPS
excluding
litigation
charge
are
Non-GAAP
numbers
and
a
reconciliation
is
provided
in
the
appendix.
3
1Q15
Common
Equity
Tier
1
is
an
estimate.
This
number
is
Non-GAAP.
2
Revenue
excluding
positive
impact
of
mortgage
servicing
sale
was
$278mm
in
1Q14
and
excludes
$20mm
of
previously
unrecognized
servicing
fees
associated
with
the
MSR
sale. |
|
1Q15 Segment
Highlights 7
1
Corporate and Consolidated show net income available to common, which reflects $3mm of
noncontrolling interest and $1.6mm of preferred stock dividends in each quarter. 2
Segment
EPS
impacts
are
Non-GAAP
numbers
and
reconciled
in
the
table.
EPS
impacts
are
calculated
using
the
1Q15
net
income
column
divided
by
the
233
million
diluted
shares
outstanding.
3
Regional Banking pre-tax pre-provision net revenue is a Non-GAAP number and a
reconciliation is provided in the appendix. Drivers and Impacts
Net Income
$ in millions,
except EPS
1Q15
Per Share
Impact
Regional
Banking
Capital
Markets
Corporate
Non-
Strategic
Total
4Q14
$51
$4
$(13)
$5
$47
1Q14
$36
$5
$(8)
$12
$46
1Q15
$48
$7
$(18)
$(114)
$(77)
$0.20
$0.03
$(0.07)
$(0.49)
$(0.33)
Fixed income ADR of $877k in 1Q15 vs $630k in 4Q14
Expenses up 18% linked quarter and 4% year over year, primarily due to
variable compensation
1Q15 included $163mm expense related to legal matters
Loan loss provision of $0.1mm in 1Q15 vs $0.4mm in 4Q14 and credit of
$3mm in 1Q14
PPNR up 13% year over year
NII up 9% year over year, but down 2% linked quarter primarily due to
day count
Average loans up 3% linked quarter and 14% year over year
1Q15 provision of $5mm vs 4Q14 provision of $6mm
Tax benefit of $12mm in 1Q15 vs $20mm in 4Q14
Security gains of $0.3 in 1Q15 vs $6mm in 1Q14
Numbers may not add to total due to rounding.
1
2
3
1
1 |
|
Regional Banking
Financial Results 8
Net Interest Income
Fee Income
Expense
$ in millions
Financial Results
1Q15
$154
Loan Loss Provision
Pre-Provision Net Revenue
1
$60
$136
$79
$5
1Q15 vs
+$12
$0
+$3
+$9
-$8
4Q14
$158
$64
$138
$84
$6
1Q14
$142
$60
$133
$69
$13
4Q14
-$3
-$4
-$2
-$6
-$1
1Q14
Actuals
PPNR and net income up 13% and 31%, respectively, year over year, but down linked quarter
largely due to seasonal factors
Average loans increased 3% linked quarter and 14% year over year
Average core deposits up 6% linked quarter and up 9% year over year
Revenues down 3% linked quarter, but up 6% year over year
NII down 2% from fewer days in quarter, but up 9% year over year
Fee income down 6% linked quarter largely due to seasonal decline in deposit, brokerage and
trust fees Efficiency ratio improvement of 234
bps
year over year
1Q15 net charge-offs of $6mm,
or annualized 0.17%
of average loans, compared to $7mm, or annualized
0.20%, in 4Q14
Numbers may not add to total due to rounding.
Net Income
$48
$51
$36
+11
-$3
1
Regional Banking pre-tax pre-provision net revenue is a Non-GAAP number and a
reconciliation is provided in the appendix. |
|
9
1
Average Regional Banking loan growth from 4Q14 to 1Q15.
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 14% year
over year and 3% linked quarter
Commercial loans up 15% year over year and 4%
linked quarter
Commercial loan utilization rate up ~300bps
linked quarter
Continued growth in specialty lending areas
Asset-based lending growth due to funding of
commitments
Loans to mortgage companies increase driven by
higher refi activity
+3%
Loans to Mortgage Companies
Commercial
Asset-Based Lending
Regional
Bank
Areas
of
Linked
Quarter
Loan
Growth
1
Commercial
Business
PC/WM
Retail
Loans to
Mortgage Cos
CRE
ABL
Other
Specialty
$3.26B
$3.39B
$0.76B
$0.76B
$1.86B
$1.88B
$2.13B
$2.11B
$0.93B
$1.04B
$1.24B
$1.24B
$1.37B
$1.44B
$1.58B
$1.66B
4Q14
1Q15
$0
$2
$4
$6
$8
$10
$12
$14B
12%
5%
4% |
|
10
FTN Financial Capital Markets
Capital Markets
Distribution Platform Demonstrates Strength
$750mm
Capital Markets Revenue and Expense
Fixed income average daily revenue at $877k in 1Q15, up
~40% linked quarter
Increased flows due to higher rate volatility
Expenses up linked quarter due to higher variable
compensation and seasonal FICA expense in 1Q15
Focused on investing in extensive fixed income distribution
platform:
Expansion of municipal products platform
Continued development of public finance capability
Numbers may not add to total due to rounding.
$3mm
Left Axis:
Right Axis:
NII
Fee Income
$ in millions, except ADR
Financial Results
1Q15
$4
Pre-Tax Income
$62
$11
1Q15 vs
+$1
+$5
+$4
4Q14
$4
$49
$6
1Q14
$3
$57
$8
4Q14
+$1
+$13
+$5
1Q14
Actuals
Expense
$55
+$2
$46
$53
+$8
Average Daily Revenue (ADR)
$877k
$630k
$813k
+$64k
+$247k
$0
$1
$2
$0
$250
$500
Revenue
Expense
ADR
2
1Q15 annualized.
These are Non-GAAP numbers and a reconciliation is provided in the appendix.
1
2011 excludes $36.7mm of expense associated with the Sentinel settlement. 2014 excludes the
$47mm recovery of the Sentinel settlement expense and legal fees. |
|
11
Numbers may not add to total due to rounding.
1
NII sensitivity analysis uses FHNs balance sheet as of 1Q15 and is Non-GAAP. Long
End +50bps assumes yield curve spreads widen ~50bps. Long end -50bps assumes yield curve spreads compress
~50bps. 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.
Net Interest Income Sensitivity Impact
1
NII and Net Interest Margin
Balance Sheet Positioned to Benefit from Rising Rates
Average core deposits up 7% linked quarter, 11% YOY
Regional Banking average deposit rate paid of 14bps in
1Q15 and 4Q14
Floating rate loans comprise 66% of loan portfolio vs
fixed rate loans at 34%
Attractive and stable low-cost funding mix in Regional
Banking with 58% DDA and interest checking deposits
Average Deposit Growth
15%
1Q15
$157
2.74%
NII and NIM Change Drivers
NII
NIM
($ in millions)
4Q14
$159
2.86%
Deposit Growth/Higher Fed Balances
Loan Fees & Cash Basis Income/Other
Commercial Loan Yields
Reduction of Non-Strategic Loans
Pre-Funding
of
Debt
Maturity
Increased Commercial Loan Volumes
+4%
+6%
+9%
+14%
Linked Quarter:
Year Over Year:
Consumer
Consumer
Commercial
Commercial
Fewer Days in Quarter
-$0.8
-5bp
-1bp
-$0.5
-1bp
$0.5
-$1.2
-6bp
1bp
$1.9
-
-
-$2.1
-
-1.7%
-$11mm
+1.5%
+$9mm
+6.3%
+$40mm
+12.2%
+$78mm
Long End
-50bps
Long End
+50bps
+100bps
+200bps
-3%
0%
3%
6%
9%
12% |
|
12
Delivering Efficiencies
Expenses down 2% year over year
Annualized noninterest expense declined 22% since 2012
Ongoing efficiency opportunities:
Continued wind-down of Non-Strategic segment (decreased legal/professional fees,
credit, and repurchase expense)
Streamline end-to-end processes
Reduce corporate real estate footprint
Right-size branch network as consumer usage shifts to FHNs expanded digital banking
platforms All
Non-GAAP
numbers
are
reconciled
in
the
appendix.
1
Expenses
excluding
litigation
charge
is
a
Non-GAAP
number.
2
1Q12 excludes ~$49mm in mortgage repurchase provision. 1Q13 excludes ~$5mm in litigation
expense. 1Q14 excludes ~$0.1mm in litigation expense, and 1Q15 excludes ~$163mm in
litigation expense. These are Non-GAAP numbers . 3
Non-Strategic excludes ~$0.1mm and ~$163mm in litigation expense in 2014 and 2015
respectively. These are Non-GAAP numbers. Annualized Noninterest Expense
-22%
Noninterest Expense Trends by Segment 1Q14-1Q15
Regional Banking
Capital Markets
Corporate
Non-Strategic
$1,090mm
$941mm
$872mm
$855mm
1Q12
1Q13
1Q14
1Q15
-41%
-
18%
4%
2%
Annualized
Annualized
Annualized
Annualized
3
2
1
2 |
|
13
Non-Performing Assets
Net Charge-Offs
Asset Quality Trends
Continued Improvement in Credit Trends
Reserves
Net charge-offs of $9mm in 1Q15, compared to
$12mm in 4Q14 and $17mm in 1Q14
Annualized net charge-off ratio improvement of 7
bps to 0.23% from 4Q14
NPL levels at $207mm, down 2% linked quarter and
32% year over year
Commercial
NPLs
down
2%
linked
quarter
and
30% year over year
Numbers may not add to total due to rounding.
1
Net charge-off % is annualized.
$0
$100
$200
$300
1Q14
2Q14
3Q14
4Q14
1Q15
NPLs
NPLs Held for Sale
ORE
1.00%
1.25%
1.50%
1.75%
2.00%
$200
$220
$240
1Q14
2Q14
3Q14
4Q14
1Q15
Reserves $
Reserves / Loans %
0.00%
0.13%
0.25%
0.38%
0.50%
$0
$5
$10
$15
1Q14
2Q14
3Q14
4Q14
1Q15
NCOs $
Provision $
NCO %¹
$400mm
$260mm
$20mm |
|
Tier 1 Common to
Common Equity Tier 1: Remain Well Capitalized
14
Numbers
may
not
add
to
total
due
to
rounding
1
4Q14
Tier
1
Common
is
a
Non-GAAP
number
and
a
reconciliation
is
provided
in
the
appendix.
2
1Q15
Common
Equity
Tier
1
is
an
estimate.
4Q14
Tier 1
Common
1
1Q15
Common
Equity
Net Retained
Income
Excluding
After-tax
DOJ/HUD
Settlement
Phase-in of
Basel III
11.4%
-10bp
-60bp
10.3%
+10bp
DOJ/HUD
Settlement
Transition
to
Common
Equity
Tier
1
(CET1)
from
Tier
1
Common
due
to
phase-in
of
Basel
III
Utilizing excess capital via earning asset growth
Strong capital ratios provide continued flexibility
RWA Increase
from Earning
Asset Growth /
Other
-50bp
Tier 1
2
0%
2%
4%
6%
8%
10%
12% |
|
15
1Q15
Consolidated
Core Businesses
4
Long-Term Targets
ROTCE
1,2
8.30%
8.99%
15.0
20.0%
ROA
1,2
0.73%
0.73%
1.25 -
1.45%
NIM
2.74%
2.81%
3.50 -
4.00%
CET1 (Consolidated) &
Allocated CET1 (Core)
10.3%
9.7%
8.0
9.0%
NCO / Average Loans
0.23%
0.17%
0.30 -
0.70%
Fee Income / Revenue
45%
47%
40 -
50%
Efficiency Ratio
75%
76%
60 -
65%
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%
1
3
1
2
2
Consolidated ROTCE, ROA and Efficiency Ratio are adjusted for litigation expense and are
Non-GAAP numbers. 3
Common Equity Tier 1 (CET1): Current quarter is an estimate. Allocated CET1 refers to implied
CET1 of ~9.7% in core businesses. 4
Core Businesses include Regional Banking, Capital Markets, and Corporate segments. Core data
is Non-GAAP. All Non-GAAP numbers are reconciled in the appendix. ¹ROTCE, ROA, NIM, and NCO / Average Loans are annualized. |
|
16
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
Wind-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 Income
Embedded in
Asset-Sensitive
Balance Sheet
Specialty
Lending
Mid-Atlantic
Middle TN
Houston
Wealth /
Investments
Municipals
(FTN
Financial)
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. 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
Capital
Markets
Activity |
|
17
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 |
|
Notable
Items 19
Impact to EPS²
Previously Unrecognized Servicing Fees
Associated with the MSR Sale
$12.3mm
After-Tax Amount¹
$0.05
Securities Gain on an Equity Investment
$3.4mm
$0.01
Notable Item
Pre-Tax Amount
$20.0mm
$5.6mm
Refer to financial supplements for other notable items.
1
After-tax
impact
assumes
a
tax
rate
of
~38.6%
in
1Q14,
~33.3%
in
2Q14,
~37%
in
3Q14,
and
~23.6%
in
1Q15,.
2
EPS impact calculated by dividing the after-tax impact by the 237mm diluted shares
outstanding in 1Q14-3Q14. 3
EPS impact of agreement in principle with DOJ/HUD is reconciled in the appendix.
Lease Abandonment & Other Restructuring
Charges
($3.5)mm
$(0.01)
$(5.7)mm
Held-for-Sale (Primarily NPL) Portfolio Valuation
Adjustment
$5.5mm
$0.02
$8.2mm
Net Impact from Resolution/ Collapse of On-
Balance Sheet Consumer Securitizations
($3.9)mm
$(0.02)
$(6.4)mm
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
$(35.0)mm
$(22.0)mm
$(0.09)
Net Loss Accruals Related to Legal Matters
None
Agreement in principle with DOJ/HUD to settle
potential claims on FHA loans
$(162.5)mm
$(124.1)mm
$(0.51)³ |
|
20
1Q15 Credit Quality Summary by Portfolio
Numbers
may
not
add
to
total
due
to
rounding.
Data
as
of
1Q15.
NM:
Not
meaningful.
($ 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
$9,185
$1,320
$3,358
$337
$14,200
$123
$453
$1
$1,565
$379
$11
$16,732
30+ Delinquency
0.07%
0.32%
0.55%
1.29%
0.24%
3.41%
0.08%
14.87%
1.92%
2.50%
1.40%
0.47%
Dollars
$7
$4
$18
$4
$34
$4
$0
$0
$30
$9
$0
$78
NPL %
0.24%
1.00%
0.84%
0.15%
0.45%
2.29%
2.68%
18.31%
5.83%
7.82%
6.66%
1.20%
Dollars
$22
$13
$28
$0
$64
$3
$12
$0
$91
$30
$1
$200
Net Charge-offs
3
%
0.08%
0.03%
0.15%
3.22%
0.17%
NM
NM
2.64%
0.64%
0.59%
9.24%
0.23%
Dollars
$2
$0
$1
$3
$6
NM
$0
$0
$3
$1
$0
$9
Allowance
$63
$18
$33
$13
$126
NM
$5
$0
$77
$20
$1
$228
Allowance / Loans %
0.68%
1.33%
0.97%
3.88%
0.89%
NM
1.09%
8.22%
4.90%
5.32%
4.69%
1.36%
Allowance / Charge-offs
9.42x
52.33x
6.45x
1.16x
5.41x
NM
NM
1.06x
7.36x
8.82x
0.49x
6.17x
Regional Banking
Corporate
4
Non-Strategic
Commercial
(C&I & Other)
1
Creditcard,
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. |
|
21
C&I and CRE Portfolio Detail
$9.6B C&I portfolio, diversified by industry, managed
primarily in Regional Banking
$1.3B CRE portfolio, comprising 8% of period-end
consolidated loans
Commercial (C&I and CRE) net charge-offs were $2mm
for the quarter
Charge-offs were $4.3mm with recoveries of
$2.6mm
Data as of 1Q15. Numbers may not add to total due to rounding.
CRE: Loan Type
CRE: Collateral Type
C&I: Loans to Mortgage Companies
Construction
29%
Land
4%
Mini-
Perm/Non-
Construction
66%
Retail
25%
Multi-Family
31%
Office
14%
Industrial
11%
Land
4%
Other
6%
Hospitality
8%
$0.0
$0.4
$0.8
$1.2
$1.6
1Q14
2Q14
3Q14
4Q14
1Q15
Period End
Average |
|
22
Consumer Portfolio Overview
Data as of 1Q15. Numbers may not add to total due to rounding.
HELOC Draw vs
Repayment Balances
Percent of Home Equity Portfolio:
Months Left in Draw Period
Home Equity Portfolio Characteristics
Home Equity Geographic Distribution
Non-Strategic Consumer
Real Estate Run-Off
First
Second
Total
Balance
$2.8B
$2.1B
$4.9B
Original FICO
753
735
745
Refreshed FICO
752
723
739
Original CLTV
77%
81%
79%
Full Doc
93%
74%
85%
Owner Occupied
93%
95%
94%
HELOCs
$0.7B
$1.7B
$2.4B
Weighted Average
HELOC Utilization
47%
56%
54%
22%
15%
17%
8%
5%
32%
0%
5%
10%
15%
20%
25%
30%
35%
0-12
13-24
25-36
37-48
49-60
>60
$1.7
$0.7
$0.0
$0.5
$1.0
$1.5
In Draw
In
Repayment
19%
19%
21%
25%
28%
15%
18%
21%
24%
27%
30%
$0.0
$0.5
$1.0
$1.5
$2.0
1Q14
2Q14
3Q14
4Q14
1Q15
Period End Balance
Constant Pre-Payment Rate (Right Axis)
Core
Banking
Customers
TN
60%
CA
8%
VA
3%
GA
3%
Other
26%
$2.0B
$2.5B |
|
23
Agency & Non-Agency Update
Repurchase Resolution Agreements with Both GSEs
Data
as
of
1Q15.
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
which
could occur on the same loan. Excludes MI cancellation notices that have been reviewed and
coverage has been lost. MI cancellations that have resulted in lost coverage are included in managements
assessment
of
the
adequacy
of
repurchase
reserves.
1Q14,
2Q14,
3Q14,
4Q14,
and
1Q15
resolutions
include
$13.7mm,
$6.5mm,
$4.8mm,
$4.2mm,
and
$5.0mm
in
other
claims,
respectively,
that
pose
no risk to the repurchase reserve but require formal acknowledgment with Fannie.
Total
Pipeline
of
Repurchase
Requests
1
$300mm
Mortgage Repurchase Reserve
($ in millions)
Beginning Balance
Net Realized Losses
Ending Balance
Provision
2Q14
$145
$(4)
$141
$0
3Q14
$141
$(13)
$125
$(4)
4Q14
$125
$(6)
$119
$0
1Q14
$165
$(20)
$145
$0
Other Whole Loan Sales and Non-Agency
Represent 48% of all active repurchase/make whole
requests in 1Q15 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
1Q15
$119
$(3)
$116
$0
Loan Sales
$0
$2
$0
$0
$0
$0
$150
1Q14
2Q14
3Q14
4Q14
1Q15
GSE New Requests
Other New Requests
Resolved
Pipeline |
|
FH Proprietary
Securitizations Litigation Certificate Breakdown
24
$627mm
FHAMS 2005-FA10
($ in millions)
Deal
FHASI 2007-AR2
1
(Schwab)
Senior
$50.0
$33.4
$14.3
$12.6
$1.7
$2.3
FHAMS 2006-FA6
(FDIC Alabama)
Senior
$11.1
$3.4
$6.2
$5.1
$1.1
$1.5
FHAMS 2006-FA6
(FDIC Alabama)
Senior
$15.2
$5.1
$8.9
$7.2
$1.7
$1.3
FHAMS 2006-FA7
(FDIC Alabama)
Senior
$20.7
$6.7
$11.4
$9.4
$2.0
$2.6
FHAMS 2007-FA4
1
(FDIC Alabama)
Senior
$14.4
$4.1
$8.3
$6.7
$1.6
$1.9
FHAMS 2007-FA1
(FDIC New York)
Senior
$44.5
$15.1
$23.2
$18.9
$4.3
$6.2
FHAMS 2007-FA2
(FDIC New York)
Senior
$34.9
$12.5
$17.9
$14.4
$3.5
$4.5
FHAMS 2005-FA8
(FHLB Indemnification)
Senior
$100.0
$79.6
$19.9
$17.7
$2.2
$0.5
FHAMS 2007-FA3
(MetLife Indemnification)
Senior
$103.0
$61.6
$33.0
$27.1
$5.9
$8.5
2
(Royal Park Indemnification)
Senior
$100.0
$66.3
$29.6
$26.1
$3.5
$4.1
FHAMS 2006-FA2
1
(Royal Park Indemnification)
Senior
$30.0
$23.5
$5.3
$4.5
$0.8
$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
$63.4
$30.5
$25.3
$5.1
$7.6
Total
$627.5
$374.7
$208.4
$175.1
$33.3
$44.4
Cumulative
Loss
Certificate
Original
UPB
Paid
Off
Current
UPB
Performing
UPB
60D+
Delinquent
Paid Off
60%
Performing UPB
28%
60D+ Delinquent
³
5%
Cumulative Loss 7%
Numbers and percentages may not add to total due to rounding. Data source: March 2015 Trustee
Reports.
Table excludes three FHAMS certificates at issue in the Tennessee CRS matter as to which FHN
is not a defendant but indemnity recently has been demanded.
1
The complainants only purchased a portion of these tranches. Original UPB estimated based on
the purchase price stated in the complaints. All other metrics prorated based on the ratio of
purchase price to the total original UPB of the entire tranche. ²Royal Park is asking for indemnification on $100mm of the $190mm tranche as stated in
the indemnification request. ³60D+
Delinquent defined as a delinquency status of 60 days or more and also bankruptcies,
foreclosures and REO in such status for 60 days or more. |
|
Reconciliation to
GAAP Financials 25
Slides in this presentation use non-GAAP information of risk weighted assets, tangible
common equity, net income, non-controlling interest,
average
common
equity,
intangibles,
and
various
ratios
using
those
measures.
That
information
is
not
presented
according
to
generally
accepted
accounting
principles
(GAAP)
and
is
reconciled
to
GAAP
information
below.
Numbers may not add to total due to rounding.
1
Core Businesses include the Regional Banking, Capital Markets, and Corporate segments.
($ in millions)
1Q15
Core Businesses Return On Tangible Common Equity
(Segment equity based on internal risk-based methodology)
Corporate Average Equity (GAAP)
$1,145
Less: Corporate Non-Controlling Interest (GAAP)
$295
Less: Corporate Preferred Stock (GAAP)
$96
Corporate Average Common Equity (GAAP)
$754
Regional Banking Average Common Equity (GAAP)
$936
Capital Markets Average Common Equity (GAAP)
$156
Core
Businesses
Average
Common
Equity
(Non-GAAP)
1
$1,846
Non-Strategic Average Common Equity (GAAP)
$371
FHN Average Common Equity (GAAP)
$2,216
Regional Banking Average Intangible Assets (GAAP)
$62
Capital Markets Average Intangible Assets (GAAP)
$113
Coporate Average Intangible Assets (GAAP)
$0
Core
Businesses
Average
Intangible
Assets
(Non-GAAP)
1
$175
Non-Strategic Average Intangible Assets (GAAP)
$0
FHN Average Intangible Assets (GAAP)
$175
FHN Average Common Equity (GAAP)
$2,216
Less: FHN Average Intangible Assets (GAAP)
$175
FHN Average Tangible Common Equity (Non-GAAP)
$2,042
Core
Businesses
Average
Common
Equity
(Non-GAAP)
1
$1,846
Less: Core Businesses Average Intangible Assets (Non-GAAP)
$175
Core Businesses Average Tangible Common Equity (Non-GAAP)
$1,671
Core Businesses Net Income Available to Common
Corporate Net Income (GAAP)
-$13
Less: Corporate Non-Controlling Interest (GAAP)
$3
Less: Corporate Preferred Stock Dividends (GAAP)
$2
Corporate Net Income Available to Common (GAAP)
-$18
Regional Banking Net Income Available to Common (GAAP)
$48
Capital Markets Net Income Available to Common (GAAP)
$7
Core Businesses Net Income Available to Common (Non-GAAP)
$37
Non-Strategic Net Income Available to Common (GAAP)
-$114
FHN Net Income Available to Common (GAAP)
-$77
Core Businesses Return on Tangible Common Equity
FHN Annualized Return on Average Common Equity (Non-GAAP)
-15.24%
Core Businesses Annualized Return on Average Common Equity (Non-GAAP)
8.99%
1
1
1
1
1
1
1 |
|
Reconciliation to
GAAP Financials 26
Numbers may not add to total due to rounding.
1
Core Businesses include the Regional Banking, Capital Markets, and Corporate segments.
2
All else equal, a 200bps rate shock results in ~$78mm increase in Core Businesses annual NII
(see slide 11), as Non-Strategic is interest rate neutral. Slides in this
presentation use non-GAAP information of expense, revenue, repurchase provision, and various ratios using one or
more of those measures. That information is not presented according to generally accepted
accounting principles (GAAP) and is reconciled to GAAP information below.
Net Interest Margin
($ in millions)
1Q15
4Q14
3Q14
2Q14
1Q14
Regional Banking Net Interest Income (GAAP)
$154
$158
$154
$149
$142
Regional Banking FTE Adjustment
$2
$2
$2
$2
$2
Regional Banking Net Interest Income Adjusted for Impact of FTE (Non-GAAP)
$157
$160
$156
$151
$144
Capital Markets Net Interest Income (GAAP)
$4
$4
$3
$3
$3
Capital Markets FTE Adjustment
$0
$0
$0
$0
$0
Capital Markets Net Interest Income Adjusted for Impact of FTE (Non-GAAP)
$5
$4
$3
$3
$4
Corporate Net Interest Income (GAAP)
-$16
-$18
-$14
-$12
-$10
Corporate FTE Adjustment
$0
$0
$0
$0
$0
Corporate Net Interest Income Adjusted for Impact of FTE (Non-GAAP)
-$16
-$18
-$14
-$12
-$10
Core Businesses Net Interest Income (Non-GAAP)
1
$143
$143
$143
$139
$136
Core Businesses FTE Adjustment (Non-GAAP)
1
$3
$3
$2
$2
$2
Core Businesses Net Interest Income Adjusted for Impact of FTE (Non-GAAP)
$145
$146
$145
$142
$138
Non-Strategic Net Interest Income (GAAP)
$14
$16
$17
$17
$17
Non-Strategic FTE Adjustment
$0
$0
$0
$0
$0
Non-Strategic Net Interest Income Adjusted for Impact of FTE (Non-GAAP)
$14
$16
$17
$17
$17
Consolidated Net Interest Income (GAAP)
$157
$159
$160
$157
$152
Consolidated FTE Adjustment
$3
$3
$2
$2
$2
Consolidated Net Interest Income Adjusted for Impact of FTE (Non-GAAP)
$159
$162
$162
$159
$154
Average Earning Assets
1Q15
Regional Banking Earning Assets (GAAP)
$13,561
Capital Markets Earning Assets (GAAP)
$2,147
Corporate Earning Assets (GAAP)
$5,162
Core Businesses Earning Assets (Non-GAAP)
$20,870
Non-Strategic Earning Assets (GAAP)
$2,604
Consolidated Earning Assets (GAAP)
$23,474
Core Businesses NIM with 200bps Rate Shock
1
1Q15
Annualized Core Businesses Net Interest Income Adjusted for Impact of FTE (Non-GAAP)
a
$589
Core Businesses Average Earning Assets (Non-GAAP)
b
$20,870
Core Businesses NIM (Non-GAAP)
a/b
2.81%
Core Businesses Additional Annual NII from a 200bps Rate Shock (Non-GAAP)
c
$78
Core Businesses NIM with 200bps Rate Shock (Non-GAAP)
(a+c)/b
3.19%
Annualized Consolidated Net Interest Income Adjusted for Impact of FTE (Non-GAAP)
d
$646
Consolidated Average Earning Assets (GAAP)
e
$23,474
Consolidated NIM (GAAP)
d/e
2.74%
Consolidated Additional Annual NII from a 200bps Rate Shock (Non-GAAP)
f
$78
Consolidated NIM with 200bps Rate Shock (Non-GAAP)
(d+f)/e
3.09%
²
²
1
1 |
|
Reconciliation to
GAAP Financials 27
Numbers may not add to total due to rounding.
1
Includes goodwill and other intangible assets, net of
amortization.
2
Current quarter is an
estimate.
Slides in this presentation use non-GAAP information of expense, revenue, repurchase
provision, and various ratios using one or more of those measures. That information is
not presented according to generally accepted accounting principles (GAAP) and is
reconciled to GAAP information below.
($ in millions)
1Q15
4Q14
3Q14
2Q14
1Q14
Tangible Common Equity (Non-GAAP)
Total Equity (GAAP)
$2,499
$2,582
$2,615
$2,621
$2,542
Less: Noncontrolling Interest
$295
$295
$295
$295
$295
Less: Preferred Stock
$96
$96
$96
$96
$96
Total Common Equity
$2,108
$2,191
$2,224
$2,230
$2,151
$174
$175
$161
$162
$163
Tangible Common Equity (Non-GAAP)
$1,934
$2,015
$2,063
$2,068
$1,988
Tangible Assets (Non-GAAP)
Total Assets (GAAP)
$25,716
$25,668
$23,986
$24,225
$23,946
$174
$175
$161
$162
$163
Tangible Assets (Non-GAAP)
$25,542
$25,493
$23,825
$24,063
$23,783
Tier 1 Common (Non-GAAP)
Tier 1 Capital
$2,452
$2,814
$2,783
$2,752
$2,666
Less:
Noncontrolling
Interest
-
FTBNA
Preferred
Stock
N/A
$295
$295
$295
$295
Less: Preferred Stock
N/A
$96
$96
$96
$96
Less: Trust Preferred
N/A
$200
$200
$200
$200
Tier 1 Common (Non-GAAP)
N/A
$2,223
$2,193
$2,161
$2,076
Risk Weighted Assets
Risk Weighted Assets
$20,795
$19,453
$19,238
$19,400
$18,695
Ratios
Tangible Common Equity to Tangible Assets (TCE/TA) (Non-GAAP)
7.57%
7.90%
8.66%
8.60%
8.36%
Total Equity to Total Assets (GAAP)
9.72%
10.06%
10.90%
10.82%
10.61%
Tier 1 Common to Risk Weighted Assets (Non-GAAP)
N/A
11.43%
11.40%
11.14%
11.10%
Tier 1 Capital to Total Assets (GAAP)
9.54%
10.96%
11.60%
11.36%
11.14%
Less: Intangible Assets (GAAP)
Less: Intangible Assets (GAAP)
1
1
2
2
2
2
2 |
|
28
Slides in this presentation use non-GAAP information of expense, revenue, repurchase
provision, and various ratios using one or more of those measures. That information is
not presented according to generally accepted accounting principles (GAAP) and is
reconciled to GAAP information below.
Numbers may not add to total due to rounding.
1
Core Businesses include the Regional Banking, Capital Markets, and Corporate segments.
2
ROA and Net Charge-offs / Average loans are annualized for 1Q15.
Reconciliation to GAAP Financials
($ in millions)
Net Interest Available to Common/EPS Excluding Litigation Charge
1Q15
-$95
$163
$68
$22
$46
$3
$2
$42
235
$0.18
Impact to EPS of Litigation Charge
Earnings Per Share (GAAP)
-$0.33
Less: Earnings Per Share Excluding Litigation Charge (Non-GAAP)
$0.18
Impact to EPS of Litigation Charge (Non-GAAP)
-$0.51
Adjusted Annualized Net Income Available to Common Shareholders Excluding Litigation Charge
(Non-GAAP) $169
FHN Average Tangible Common Equity (GAAP)
$2,042
Consolidated Return on Average Tangible Common Equity Excluding Litigation Charge
(Non-GAAP) 8.30%
$187
Average Total Assets (GAAP)
$25,645
Consolidated Return on Assets Excluding Litigation Charge (Non-GAAP)
0.73%
Consolidated Efficiency Ratio Excluding Litigation Charge
Adjusted Consolidated Noninterest Expense (Non-GAAP)
$214
Total Revenue Excluding Securities Gains (GAAP)
$286
Consolidated Efficiency Ratio Excluding Litigation Charge (Non-GAAP)
75%
Return
on Assets²
Net Interest
Margin
Regional Banking (GAAP)
1.35%
4.68%
Capital Markets (GAAP)
1.17%
0.83%
Corporate (GAAP)
-0.84%
-1.28%
Core Businesses (Non-GAAP)¹
0.73%
2.81%
Non-Strategic (GAAP)
-18.05%
2.19%
Consolidated (GAAP)
-1.15%
2.74%
Adjusted Annualized Consolidated Net Income Excluding Litigation Charge (Non-GAAP)
Less: Preferred Stock Dividends (GAAP)
Assumed Diluted Shares with Net Income Instead of Net Loss (Non-GAAP)
Consolidated Return on Assets Excluding Litigation Charge
Consolidated Return on Average Tangible Common Equity Excluding Litigation Charge
Key Ratios Excluding Litigation Charge
Earnings Per Share Excluding Litigation Charge (Non-GAAP)
Net Income Available to Common Shareholders Excluding Litigation Charge (Non-GAAP)
Consolidated Pre-tax Loss (GAAP)
Plus: Litigation Charge (GAAP)
Adjusted Consolidated Pre-tax Income (Non-GAAP)
Less: Adjusted Tax Using Estimated Tax Rate of ~32% (Non-GAAP)
Less: Net Income Attributable to Noncontrolling Interest (GAAP)
Adjusted Net Income Excluding Litigation Charge (Non-GAAP)
0.55%
15%
NM
0.23%
45%
NM
Net Charge-Offs/
Average Loans²
Fee Income /
Total Revenue
Efficiency
Ratio
0.17%
28%
63%
0.00%
93%
83%
NM
NM
NM
0.17%
47%
76% |
|
29
Slides in this presentation use non-GAAP information of expense, revenue, repurchase
provision, and various ratios using one or more of those measures. That information is
not presented according to generally accepted accounting principles (GAAP) and is
reconciled to GAAP information below.
Numbers may not add to total due to rounding.
Reconciliation to GAAP Financials
($ in millions)
1Q15
4Q14
1Q14
Regional Banking Pre-Provision Net Revenue
$215
$222
$202
$136
$138
$133
$79
$84
$69
1Q15 Changes vs
Adjusted Consolidated Noninterest Expense
1Q15
1Q14
1Q13
1Q12
1Q14
1Q12
$376
$218
$241
$322
73%
17%
$0
$0
$0
$49
$163
$0
$5
$0
$214
$218
$235
$273
-2%
-22%
$855
$872
$941
$1,090
2014
2011
Capital Markets Noninterest Expense (GAAP)
$147
$321
Sentinel Noninterest Expense/(Recovery) (GAAP)
($47)
$37
Adjusted Capital Markets Noninterest Expense (Non-GAAP)
$194
$284
1Q15
1Q14
Change
$172
$16
$0
$0
$163
$0
$9
$15
-41%
Adjusted Capital Markets Noninterest Expense
Adjusted Annualized Noninterest Expense (Non-GAAP)
Regional Banking Total Revenue (GAAP)
Regional Banking Total Expense (GAAP)
Regional Banking Pre-Provision Net Revenue (Non-GAAP)
Consolidated Noninterest Expense (GAAP)
Less: Repurchase and Foreclosure Provision (GAAP)
Adjusted Non-Strategic
Adjusted Non-Strategic Noninterest Expense (Non-GAAP)
Less: Repurchase and Foreclosure Provision (GAAP)
Less: Litigation Charge (GAAP)
Less: Litigation Charge (GAAP)
Adjusted Consolidated Noninterest Expense (Non-GAAP)
Non-Strategic Noninterest Expense (GAAP) |
First Horizon (NYSE:FHN)
Historical Stock Chart
From May 2024 to Jun 2024
First Horizon (NYSE:FHN)
Historical Stock Chart
From Jun 2023 to Jun 2024