XML 41 R21.htm IDEA: XBRL DOCUMENT v3.21.1
Business Segment Information
 3 Months Ended
Mar. 31, 2021
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 reflect financial information for each reportable business segment for the three months ended March 31 2021 and 2020:
Three Months Ended March 31, 2021
(Dollars in millions)Regional BankingSpecialty BankingCorporateConsolidated
Net interest income (expense)$426 $159 $(77)$508 
Provision for credit losses(32)(7)(6)(45)
Noninterest income100 185 13 298 
Noninterest expense (a)272 154 118 544 
Income (loss) before income taxes286 197 (176)307 
Income tax expense (benefit)66 47 (42)71 
Net income (loss)$220 $150 $(134)$236 
Average assets$42,371 $21,503 $21,527 $85,401 
(a) Includes $33 million in asset impairments related to IBKC merger integration efforts in the Corporate segment.
Three Months Ended March 31, 2020
(Dollars in millions)Regional BankingSpecialty BankingCorporateConsolidated
Net interest income (expense)$194 $109 $— $303 
Provision for credit losses98 54 2 154 
Noninterest income73 104 (3)174 
Noninterest expense173 111 18 302 
Income (loss) before income taxes(4)48 (23)21 
Income tax expense (benefit)(2)11 (4)5 
Net income (loss)$(2)$37 $(19)$16 
Average assets$19,044 $16,890 $7,618 $43,552 
Certain previously reported amounts have been reclassified to agree with current presentation.

The following tables reflect a disaggregation of FHN’s noninterest income by major product line and reportable segment for the three months ended March 31, 2021 and 2020:
Three months ended March 31, 2021
(Dollars in millions)Regional BankingSpecialty BankingCorporateConsolidated
Noninterest income:
Fixed income (a)$1 $125 $— $126 
Mortgage banking and title income— 52 1 53 
Deposit transactions and cash management38 3 1 42 
Brokerage, management fees and commissions20 — — 20 
Trust services and investment management12 — — 12 
Bankcard income11 — — 11 
Other income (b)18 5 11 34 
Total noninterest income$100 $185 $13 $298 
(a)Includes $10 million of underwriting, portfolio advisory, and other noninterest income in scope of ASC 606, "Revenue From Contracts With Customers."
(b)Includes other service charges, ATM and interchange fees, electronic banking fees, and insurance commissions in scope of ASC 606.
Three months ended March 31, 2020
(Dollars in millions)Regional BankingSpecialty BankingCorporateConsolidated
Noninterest income:
Fixed income (a)$— $96 $— $96 
Mortgage banking and title income— 2 — 2 
Deposit transactions and cash management26 3 1 30 
Brokerage, management fees and commissions16 — — 16 
Trust services and investment management7 — — 7 
Bankcard income6 1 — 7 
Other income (b)18 2 (4)16 
Total noninterest income$73 $104 $(3)$174 
Certain previously reported amounts have been reclassified to agree with current presentation.

(a)Includes $9 million of underwriting, portfolio advisory, and other noninterest income in scope of ASC 606, "Revenue From Contracts With Customers."
(b)Includes other service charges, ATM and interchange fees, electronic banking fees, and insurance commissions in scope of ASC 606.