Business Segment Information (Tables)

3 Months Ended

Mar. 31, 2023

Schedule of Segment Financial Information

The following tables present financial information for each reportable business segment for the three months ended March 31, 2023 and 2022:


SEGMENT FINANCIAL INFORMATION
	Three Months Ended March 31, 2023
(Dollars in millions)	Regional Banking		Specialty Banking		Corporate		Consolidated
Net interest income (expense)	$	586	$	126	$	(24)	$	688
Provision for credit losses	41		10		(1)		50
Noninterest income	107		53		11		171
Noninterest expense (a)	322		91		65		478
Income (loss) before income taxes	330		78		(77)		331
Income tax expense (benefit)	78		19		(21)		76
Net income (loss)	$	252	$	59	$	(56)	$	255
Average assets	$	44,487	$	19,436	$	14,918	$	78,841


	Three Months Ended March 31, 2022
(Dollars in millions)	Regional Banking		Specialty Banking		Corporate		Consolidated
Net interest income (expense)	$	427	$	144	$	(92)	$	479
Provision for credit losses	(30)		(3)		(7)		(40)
Noninterest income	114		105		10		229
Noninterest expense (a)	306		132		55		493
Income (loss) before income taxes	265		120		(130)		255
Income tax expense (benefit)	62		29		(34)		57
Net income (loss)	$	203	$	91	$	(96)	$	198
Average assets	$	40,544	$	20,246	$	27,797	$	88,587

(a) 2023 includes $21 million in merger and integration expenses related to the TD Transaction and 2022 includes $37 million in merger and integration expenses related to the IBKC merger and TD Transaction in the Corporate segment.

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, 2023 and 2022:


NONINTEREST INCOME DETAIL BY SEGMENT
	Three months ended March 31, 2023
(Dollars in millions)	Regional Banking		Specialty Banking		Corporate		Consolidated
Noninterest income:
Deposit transactions and cash management	$	38	$	2	$	2	$	42
Fixed income (a)	—		39		—		39
Brokerage, management fees and commissions	22		—		—		22
Card and digital banking fees	17		1		2		20
Other service charges and fees	8		5		—		13
Trust services and investment management	11		—		—		11


Mortgage banking and title income	—		5		—		5
Other income (c)	11		1		7		19
Total noninterest income	$	107	$	53	$	11	$	171



	Three months ended March 31, 2022
(Dollars in millions)	Regional Banking		Specialty Banking		Corporate		Consolidated
Noninterest income:
Deposit transactions and cash management	$	39	$	3	$	2	$	44
Fixed income (a)	—		73		—		73
Brokerage, management fees and commissions	24		—		—		24
Card and digital banking fees	17		1		2		20
Other service charges and fees	8		5		—		13
Trust services and investment management	13		—		—		13
Mortgage banking and title income	—		22		—		22
Securities gains (losses), net (b)	—		—		6		6


Other income (c)	13		1		—		14
Total noninterest income	$	114	$	105	$	10	$	229

(a)2023 and 2022 includes $10 million of underwriting, portfolio advisory, and other noninterest income in scope of ASC 606, "Revenue From Contracts With Customers."

(b)Represents noninterest income excluded from the scope of ASC 606. Amount is presented for informational purposes to reconcile total noninterest income.

(c)Includes letter of credit fees and insurance commissions in scope of ASC 606.