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Business Segment Information
 12 Months Ended
Dec. 31, 2020
Segment Reporting, Measurement Disclosures [Abstract]  
Business Segment Information Business Segment Information
During the fourth quarter of 2020, FHN reorganized its internal management structure and, accordingly, its segment reporting structure. Historically, FHN's reportable business segments were Regional Banking, Fixed Income, Corporate, and Non-strategic. On July 1, 2020, FHN and IBKC closed their merger of equals transaction. This transaction prompted organizational changes to better integrate and execute the combined Company's strategic priorities across all lines of businesses. As a result, FHN revised its reportable segments as described below. Prior period segment information has been reclassified to conform to the current period presentation.

FHN is composed of the following operating segments:

•Regional Banking segment offers financial products and services, including traditional lending and deposit taking, to consumer and commercial clients primarily in the southern U.S. and other selected markets. Regional Banking also provides investment, wealth management, financial planning, trust and asset management services for consumer clients.

•Specialty Banking segment consists of lines of business that deliver product offerings and services with specialized industry knowledge. Specialty Banking’s lines of business include asset-based lending, mortgage warehouse lending, commercial real estate, franchise finance, correspondent banking, equipment finance, mortgage, and title insurance. In addition to traditional lending and deposit taking, Specialty Banking also delivers treasury management solutions, loan syndications, international banking and SBA lending. Additionally, Specialty Banking has
a line of business focused on fixed income securities sales, trading, underwriting, and strategies for institutional clients in the U.S. and abroad, as well as loan sales, portfolio advisory services, and derivative sales.

•Corporate segment consists primarily of corporate support functions including risk management, audit, accounting, finance, executive office, and corporate communications. Shared support services such as human resources, properties, technology, credit risk and bank operations are allocated to the activities of Regional Banking, Specialty Banking and Corporate. Additionally, the Corporate segment includes centralized management of capital and funding to support the business activities of the company including management of wholesale funding, liquidity, and capital management and allocation. The Corporate segment also includes the revenue and expense associated with run-off businesses such as pre-2009 mortgage banking elements, run-off consumer and trust preferred loan portfolios, and other exited businesses.
Periodically, FHN adapts its segments to reflect managerial or strategic changes. FHN may also modify its methodology of allocating expenses and equity among segments which could change historical segment results. Business segment revenue, expense, asset, and equity levels reflect those which are specifically identifiable or which are allocated based on an internal allocation method. Because the allocations are based on internally developed assignments and allocations, to an extent they are subjective. Generally, all assignments and allocations have been consistently applied for all periods presented.
The following tables present financial information for each reportable segment for the years ended December 31:
 
(Dollars in millions)202020192018
Consolidated
Net interest income$1,662 $1,210 $1,220 
Provision for credit losses (a)503 45 8 
Noninterest income1,492 654 723 
Noninterest expense1,718 1,233 1,221 
Income before income taxes933 586 714 
Income tax expense76 134 157 
Net income$857 $452 $557 
Average assets$64,346 $41,744 $40,225 
Depreciation and amortization 46 65 59 
Expenditures for long-lived assets 379 49 38 
(a) Increase in provision for credit losses in 2020 is primarily due to provision related to non-PCD loans acquired in the IBKC merger and Truist branch acquisition and the economic forecast attributable to the COVID-19 pandemic.
 
(Dollars in millions)202020192018
Regional Banking
Net interest income$1,307 $773 $815 
Provision for credit losses392 24 4 
Noninterest income343 289 264 
Noninterest expense900 626 707 
Income before income taxes358 412 368 
Income tax expense77 94 82 
Net income$281 $318 $286 
Average assets$31,802 $18,252 $17,263 
Depreciation and amortization(46)22 18 
Expenditures for long-lived assets283 29 36 
Specialty Banking
Net interest income$583 $444 $417 
Provision for loan losses117 37 15 
Noninterest income576 318 210 
Noninterest expense491 351 302 
Income before income taxes551 374 310 
Income tax expense134 93 76 
Net income$417 $281 $234 
Average assets$19,713 $15,508 $14,420 
Depreciation and amortization3 14 19 
Expenditures for long-lived assets6 4 2 
Corporate
Net interest expense$(228)$(7)$(12)
Provision credit for loan losses(6)(16)(11)
Noninterest income (a)573 47 249 
Noninterest expense (b)(c)(d)327 256 212 
Income (loss) before income taxes24 (200)36 
Income tax benefit(135)(53)(1)
Net income (loss)$159 $(147)$37 
Average assets$12,831 $7,984 $8,542 
Depreciation and amortization89 29 22 
Expenditures for long-lived assets90 16 — 
Certain previously reported amounts have been reclassified to agree with current presentation.
(a)    2020 includes $533 million purchase accounting gain associated with the IBKC merger; 2018 includes a $213 million pre-tax gain from the sale of Visa Class B shares.
(b)    2019 includes restructuring-related costs associated with efficiency initiatives; refer to Note 25 - Restructuring, Repositioning, and Efficiency for additional information. 2020, 2019 and 2018 include merger-related expenses; refer to Note 2 - Acquisitions and Divestitures for additional information.
(c)    2019 includes $21 million of asset impairments, professional fees, and other client-contact and technology-related expenses associated with rebranding initiatives.
(d)    2020 and 2019 include $41 million and $11 million, respectively of contributions to FHN's foundations.
The following tables reflect a disaggregation of FHN’s noninterest income by major product line and reportable segment for the years ended December 31, 2020, 2019, and 2018:
December 31, 2020
(Dollars in millions)Regional BankingSpecialty BankingCorporateConsolidated
Noninterest income:
Fixed income (a)$1 $422 $— $423 
Deposit transactions and cash management131 11 6 148 
Mortgage banking and title income— 128 1 129 
Brokerage, management fees and commissions66 — — 66 
Trust services and investment management39 — — 39 
Bankcard income34 2 1 37 
Securities gains (losses), net (b)— — (6)(6)
Purchase accounting gain— — 533 533 
Other income (c)72 13 38 123 
     Total noninterest income$343 $576 $573 $1,492 
December 31, 2019
(Dollars in millions)Regional BankingSpecialty BankingCorporateConsolidated
Noninterest income:
Fixed income (a)$— $278 $1 $279 
Deposit transactions and cash management114 11 7 132 
Mortgage banking and title income— 8 2 10 
Brokerage, management fees and commissions55 — — 55 
Trust services and investment management30 — — 30 
Bankcard income26 2 — 28 
Other income (c)64 19 37 120 
     Total noninterest income$289 $318 $47 $654 
December 31, 2018
(Dollars in millions)Regional BankingSpecialty BankingCorporateConsolidated
Noninterest income:
Fixed income (a)$— $164 $4 $168 
Deposit transactions and cash management110 17 6 133 
Mortgage banking and title income— 8 3 11 
Brokerage, management fees and commissions55 — — 55 
Trust services and investment management30 — — 30 
Bankcard income28 1 — 29 
Securities gains (losses), net (b)— — 213 213 
Other income (c)41 20 23 84 
     Total noninterest income$264 $210 $249 $723 
Certain previously reported amounts have been reclassified to agree with current presentation.
(a)For years ended 2020, 2019 and 2018, includes $39 million, $34 million and $29 million, respectively, of underwriting, portfolio advisory, and other noninterest income in scope of ASC 606, "Revenue From Contracts With Customers." 2019 and 2018 include $1 million and $4 million, respectively, of gains from the reversal of a previous valuation adjustment due to sales and payoffs of TRUPS loans excluded from the scope of ASC 606 in the Corporate segment.
(b)Represents noninterest income excluded from the scope of ASC 606. Amount is presented for informational purposes to reconcile total non-interest income. 2018 includes a pre-tax gain of $213 million from the sale of FHN's remaining holdings of Visa Class B shares.
(c)Includes other service charges, ATM and interchange fees, electronic banking fees, and insurance commissions in scope of ASC 606.