XML 68 R40.htm IDEA: XBRL DOCUMENT v3.20.4
Loans and Leases (Tables)
 12 Months Ended
Dec. 31, 2020
Receivables [Abstract]  
Schedule of Loans by Portfolio Segment The following table provides the amortized cost basis of loans and leases by portfolio segment and class as of December 31, 2020 and 2019, excluding accrued interest of $180 million and $85 million, respectively, which is included in Other assets in the Consolidated Balance Sheets.
December 31,
(Dollars in millions)20202019
Commercial:
Commercial and industrial (a) (b)$27,700 $15,640 
Loans to mortgage companies5,404 4,411 
   Total commercial, financial, and industrial33,104 20,051 
Commercial real estate12,275 4,337 
Consumer:
HELOC2,420 1,287 
Real estate installment loans9,305 4,890 
   Total consumer real estate11,725 6,177 
Credit card and other1,128 496 
Loans and leases$58,232 $31,061 
Allowance for loan and lease losses(963)(200)
Total net loans and leases$57,269 $30,861 
(a)December 31, 2020 balance includes equipment financing leases of $587 million.
(b)Includes PPP loans fully guaranteed by the SBA of $4.1 billion as of December 31, 2020.
Financing Receivable Credit Quality Indicators
The following tables provide the amortized cost basis of the commercial loan and lease portfolio by year of origination and credit quality indicator as of December 31, 2020:
C&I
(Dollars in millions)20202019201820172016Prior to 2016LMC (a)Revolving
Loans		Revolving
Loans Converted
to Term Loans (b)		Total
Credit Quality Indicator:
Pass (PD grades 1 through 12) (c)$9,081 $5,145 $2,640 $1,762 $1,161 $2,163 $5,404 $4,575 $62 $31,993 
Special Mention (PD grade 13)89 93 70 31 37 64 — 127 1 512 
Substandard, Doubtful, or Loss (PD grades 14,15, and 16)161 70 102 36 42 40 — 91 57 599 
Total C&I$9,331 $5,308 $2,812 $1,829 $1,240 $2,267 $5,404 $4,793 $120 $33,104 
(a)LMC includes non-revolving commercial lines of credit to qualified mortgage companies primarily for the temporary warehousing of eligible mortgage loans prior to the borrower's sale of those mortgage loans to third party investors. The loans are of short duration with maturities less than one year.
(b)    $50 million of C&I loans were converted from revolving to term in 2020.
(c)    2020 balance includes PPP loans.
CRE
(Dollars in millions)20202019201820172016Prior to 2016Revolving
Loans		Revolving
Loans Converted
to Term Loans		Total
Credit Quality Indicator:
Pass (PD grades 1 through 12)$2,501 $3,311 $1,750 $1,140 $946 $1,800 $277 $19 $11,744 
Special Mention (PD grade 13)48 24 117 75 71 54 — — 389 
Substandard, Doubtful, or Loss (PD grades 14,15, and 16)6 13 21 42 27 33 — — 142 
Total CRE$2,555 $3,348 $1,888 $1,257 $1,044 $1,887 $277 $19 $12,275 

The following tables provide the balances of commercial loan portfolio classes with associated allowance, disaggregated by PD grade as of December 31, 2019:
 
(Dollars in millions)
C&I (a)		Loans to
Mortgage
Companies
CRE		TotalPercentage
of Total		Allowance
for Loan
Losses
PD Grade:
Pass (PD grades 1 through 12) $15,036 $4,411 $4,252 $23,699 98 %$114 
Special Mention (PD grade 13)233 — 34 267 1 8 
Substandard, Doubtful, or Loss (PD grades 14, 15, and 16)263 — 44 307 1 30 
Collectively evaluated for impairment15,532 4,411 4,330 24,273 100 152 
Individually evaluated for impairment82 — 2 84 — 6 
Purchased credit-impaired loans26 — 5 31 — 1 
Total commercial loans$15,640 $4,411 $4,337 $24,388 100 %$159 
(a)C&I includes TRUPS loans, which are presented net of a $19 million valuation allowance.
The following table reflects the amortized cost basis by year of origination and refreshed FICO scores for consumer real estate loans as of December 31, 2020. Within consumer real estate, classes include HELOC and real estate installment. HELOCs are loans which during their draw period are classified as revolving loans. Once the draw period ends and the loan enters its repayment period, the loan converts to a term loan and is classified as revolving loans converted to term loans. All loans classified in the following table as revolving loans or revolving loans converted to term loans are HELOCs. Real estate installment loans are originated as a fixed term loan and are classified below in their vintage year from prior to 2016 to 2020. All loans in the following table classified in a vintage year are real estate installment loans.
Consumer real estate
(Dollars in millions)20202019201820172016Prior to 2016Revolving loansRevolving Loans converted to term loans (a)Total
FICO score 740 or greater$1,186 $1,167 $703 $610 $674 $1,719 $1,275 $159 $7,493 
FICO score 720-739157 158 100 77 92 197 186 29 996 
FICO score 700-719122 107 78 76 73 221 177 34 888 
FICO score 660-699130 141 123 75 85 296 264 59 1,173 
FICO score 620-65945 61 37 28 35 127 92 36 461 
FICO score less than 620107 36 52 54 95 261 61 48 714 
Total$1,747 $1,670 $1,093 $920 $1,054 $2,821 $2,055 $365 $11,725 
(a) $36 million of HELOC loans were converted from revolving to term in 2020.
The following table reflects the amortized cost basis by year of origination and refreshed FICO scores for credit card and other loans as of December 31, 2020.
Credit card and other
(Dollars in millions)20202019201820172016Prior to 2016Revolving loansRevolving Loans converted to term loansTotal
FICO score 740 or greater$57 $52 $59 $37 $23 $116 $159 $5 $508 
FICO score 720-7397 7 9 8 8 27 91 2 159 
FICO score 700-7199 8 9 8 4 38 37 3 116 
FICO score 660-69930 12 15 9 9 48 46 3 172 
FICO score 620-6595 5 7 5 10 24 20 1 77 
FICO score less than 62014 7 8 11 9 26 20 1 96 
Total$122 $91 $107 $78 $63 $279 $373 $15 $1,128 
The following table reflects the percentage of balances outstanding by average refreshed FICO scores, for the HELOC and real estate installment classes of loans as of December 31, 2019 :
 
 HELOCRE Installment
Loans
FICO score 740 or greater62 %72 %
FICO score 720-7398 8 
FICO score 700-7198 6 
FICO score 660-69911 8 
FICO score 620-6595 3 
FICO score less than 620 (a)6 3 
Total100 %100 %
(a)For this group, a majority of the loan balances had FICO scores at the time of the origination that exceeded 620 but have since deteriorated as the loans have seasoned.
Accruing and Non-Accruing Loans by Class
The following table reflects accruing and non-accruing loans and leases by class on December 31, 2020:
 AccruingNon-Accruing 
(Dollars in millions)Current30-89
Days
Past Due		90+
Days
Past Due		Total
Accruing		Current30-89
Days
Past Due		90+
Days
Past Due		Total
Non-
Accruing		Total
Loans
Commercial, financial, and industrial:
C&I (a) (b) $27,541 $15 $— $27,556 $88 $12 $44 $144 $27,700 
Loans to mortgage companies5,404 — — 5,404 — — — — 5,404 
Total commercial, financial, and industrial32,945 15 — 32,960 88 12 44 144 33,104 
Commercial real estate:
CRE12,194 23 — 12,217 10 42 6 58 12,275 
Consumer real estate:
HELOC2,336 13 11 2,360 43 3 14 60 2,420 
RE installment loans9,138 40 5 9,183 63 9 50 122 9,305 
Total consumer real estate11,474 53 16 11,543 106 12 64 182 11,725 
Credit card and other:
Credit card279 3 1 283 — — — — 283 
Other838 6 — 844 1 — 1 2 845 
Total credit card and other1,117 9 1 1,127 1 — 1 2 1,128 
Total loans and leases$57,730 $100 $17 $57,847 $205 $66 $115 $386 $58,232 

(a) $101 million of C&I loans are nonaccrual loans that have been specifically reviewed for impairment with no related allowance.
(b) C&I loans include TRUPs loans of $210 million, which is net of an amortizing discount of $18 million.
The following table reflects accruing and non-accruing loans by class on December 31, 2019:
 AccruingNon-Accruing 
(Dollars in millions)Current30-89
Days
Past Due		90+
Days
Past Due		Total
Accruing		Current30-89
Days
Past Due		90+
Days
Past Due		Total
Non-
Accruing		Total
Loans
Commercial, financial, and industrial:
C&I (a)$15,533 $7 $— $15,540 $36 $14 $24 $74 $15,614 
Loans to mortgage companies4,411 — — 4,411 — — — — 4,411 
Purchased credit-impaired loans24 — 2 26 — — — — 26 
Total commercial, financial, and industrial 19,968 7 2 19,977 36 14 24 74 20,051 
Commercial real estate:
Total commercial real estate4,329 1 — 4,330 — 1 1 2 4,332 
Purchased credit-impaired loans5 — — 5 — — — — 5 
Total commercial real estate4,334 1 — 4,335 — 1 1 2 4,337 
Consumer real estate:
HELOC1,217 9 6 1,232 43 4 8 55 1,287 
RE installment loans4,812 13 9 4,834 21 1 9 31 4,865 
Purchased credit-impaired loans19 3 3 25 — — — — 25 
Total consumer real estate6,048 25 18 6,091 64 5 17 86 6,177 
Credit card and other:
Credit card199 1 1 201 — — — — 201 
Other292 2 1 294 — — — — 294 
Purchased credit-impaired loans— — — — — — — — 1 
Total credit card and other491 3 2 496 — — — — 496 
Total loans$30,841 $36 $22 $30,899 $100 $20 $42 $162 $31,061 
Certain previously reported amounts have been reclassified to agree with current presentation.
(a)     C&I loans include $218 million in TRUPs loans, which are presented net of a valuation allowance of $19 million.
Schedule of Troubled Debt Restructurings Occurring During the Year
The following tables present the end of period balance for loans modified in a TDR during the years ended December 31, 2020 and 2019:
 20202019
(Dollars in millions)NumberPre-Modification
Outstanding
Recorded Investment		Post-Modification
Outstanding
Recorded Investment		NumberPre-Modification
Outstanding
Recorded Investment		Post-Modification
Outstanding
Recorded Investment
Commercial, financial, and industrial:
C&I112 $195 $188 4 $14 $14 
Commercial real estate:
CRE19 15 15 — — — 
Consumer real estate:
HELOC64 5 5 74 8 8 
RE installment loans117 20 19 104 12 12 
Total consumer real estate181 25 24 178 20 20 
Credit card and other56 1 1 85 1 1 
Total TDRs368 $236 $228 267 $35 $35 
The following tables present TDRs which re-defaulted during 2020 and 2019, and as to which the modification occurred 12 months or less prior to the re-default. For purposes of this disclosure, FHN generally defines payment default as 30 or more days past due.
 20202019
(Dollars in millions)NumberRecorded
Investment		NumberRecorded
Investment
Commercial, financial, and industrial:
C&I9 $1 — $— 
Consumer real estate:
HELOC8 — 7 1 
RE installment loans18 1 4 — 
Total consumer real estate26 1 11 1 
Credit card and other24 — 32 — 
Total TDRs59 $2 43 $1 
Financing Receivable, Purchased with Credit Deterioration, Amount at Purchase Price
For PCD loans acquired or purchased during 2020, a reconciliation of the unpaid principal balance, contractual cash flow owed to FHN at acquisition date, and purchase price is presented in the following table.

(Dollars in millions)C&ICREConsumer Real EstateCredit Card and OtherTotal
Par value (UPB)$4,075 $6,435 $2,394 $193 $13,097 
Allowance for loan and lease losses (138)(100)(44)(5)(287)
(Discount) premium(64)3 (32)— (93)
Purchase price$3,873 $6,338 $2,318 $188 $12,717 
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Accretable Yield Movement Schedule Rollforward The following table presents a rollforward of the accretable yield for the year ended December 31, 2019 and 2018:
 Year Ended December 31,
(Dollars in millions)20192018
Balance, beginning of period$13 $16 
Accretion(6)(10)
Adjustment for payoffs(2)(4)
Adjustment for charge-offs(1)(1)
Increase in accretable yield (a)6 13 
Other— (1)
Balance, end of period$10 $13 
 

(a)Includes changes in the accretable yield due to both transfers from the nonaccretable difference and the impact of changes in the expected timing of the cash flows.
Schedule of Acquired Purchase Credit Impaired Loans by Portfolio Segment
The following table reflects the outstanding principal balance and carrying amounts of the acquired PCI loans as of December 31, 2019:
 December 31, 2019
(Dollars in millions)Carrying valueUnpaid balance
Commercial, financial and industrial$25 $26 
Commercial real estate5 5 
Consumer real estate23 26 
Credit card and other1 1 
Total$54 $58 
Information by Class Related to Individually Impaired Loans The following tables provide additional disclosures previously required by ASC Topic 310 related to FHN's December 31, 2019 balances. Information on impaired loans at December 31, 2019 was as follows:
 December 31, 2019
(Dollars in millions)Recorded
Investment		Unpaid
Principal
Balance		Related
Allowance		Average Recorded
Investment		Interest
Income
Recognized
Impaired loans with no related allowance recorded:
Commercial:
C&I$53 $64 $— $61 $1 
Loans to mortgage companies— — — 9 — 
CRE1 1 — 2 — 
Total$54 $65 $— $72 $1 
Consumer:
HELOC (a)$5 $10 $— $7 $— 
RE installment loans (a)7 10 — 8 — 
Total$12 $20 $— $15 $— 
Impaired loans with related allowance recorded:
Commercial:
C&I$30 $32 $6 $17 $— 
Consumer:
HELOC$56 $59 $7 $61 $2 
RE installment loans94 104 13 104 3 
Credit card and other1 1 — 1 — 
Total$151 $164 $20 $166 $5 
Total commercial$84 $97 $6 $89 $1 
Total consumer$163 $184 $20 $181 $5 
Total impaired loans$247 $281 $26 $270 $6 
(a)All discharged bankruptcy loans are charged down to an estimate of net realizable value and do not carry any allowance.