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Business Segment Information
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Business Segment Information Business Segment Information
FHN's operating segments are composed of the following:
•Regional Banking segment offers financial products and services, including traditional lending and deposit taking, to commercial and consumer 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 (prior to July 2022). In addition to traditional lending and deposit taking, Specialty Banking also delivers treasury management solutions, loan syndications, and international banking. 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 business segment for the three and nine months ended September 30, 2023 and 2022:
SEGMENT FINANCIAL INFORMATION
Three Months Ended September 30, 2023
(Dollars in millions)Regional BankingSpecialty BankingCorporateConsolidated
Net interest income (expense)$583 $135 $(113)$605 
Provision for credit losses104 6 — 110 
Noninterest income109 46 18 173 
Noninterest expense (b)318 89 67 474 
Income (loss) before income taxes270 86 (162)194 
Income tax expense (benefit) (c)63 21 (32)52 
Net income (loss)$207 $65 $(130)$142 
Average assets$46,657 $20,687 $15,876 $83,220 

Three Months Ended September 30, 2022
(Dollars in millions)Regional BankingSpecialty BankingCorporateConsolidated
Net interest income (expense)$518 $138 $6 $662 
Provision for credit losses43 17 — 60 
Noninterest income (a)110 64 39 213 
Noninterest expense (b)303 105 61 469 
Income (loss) before income taxes282 80 (16)346 
Income tax expense (benefit)66 19 (7)78 
Net income (loss)$216 $61 $(9)$268 
Average assets$42,820 $19,745 $19,986 $82,551 
(a)2022 includes a $21 million gain related to the sale of the title insurance business and a $10 million gain on equity securities in the Corporate segment.
(b)2023 includes $10 million of restructuring costs in the Corporate segment. 2022 includes $24 million in merger and integration expenses related to the IBKC merger and TD Transaction in the Corporate segment.
(c)2023 includes $24 million in expense related to the surrender of bank owned life insurance policies and an $11 million benefit from merger-related tax items in the Corporate segment.
Nine Months Ended September 30, 2023
(Dollars in millions)Regional BankingSpecialty BankingCorporateConsolidated
Net interest income (expense)$1,781 $390 $(248)$1,923 
Provision for credit losses189 26 (5)210 
Noninterest income (a)325 147 273 745 
Noninterest expense (b)960 270 278 1,508 
Income (loss) before income taxes957 241 (248)950 
Income tax expense (benefit) (c)224 58 (59)223 
Net income (loss)$733 $183 $(189)$727 
Average assets$45,594 $20,054 $15,823 $81,471 
Nine Months Ended September 30, 2022
(Dollars in millions)Regional BankingSpecialty BankingCorporateConsolidated
Net interest income (expense)$1,410 $423 $(150)$1,683 
Provision for credit losses64 (4)(10)50 
Noninterest income (a)337 265 40 642 
Noninterest expense (b)906 352 192 1,450 
Income (loss) before income taxes777 340 (292)825 
Income tax expense (benefit)182 83 (82)183 
Net income (loss)$595 $257 $(210)$642 
Average assets$41,779 $20,073 $23,947 $85,799 
(a)2023 includes a $225 million gain on merger termination in the Corporate segment. 2022 includes a $12 million gain on sale of mortgage servicing rights in the Specialty Banking segment and a $21 million gain related to the sale of the title insurance business, a $10 million gain on equity securities and a $6 million gain related to a fintech investment in the Corporate segment.
(b)2023 includes $10 million of restructuring costs, a $50 million contribution to the First Horizon Foundation, $15 million in derivative valuation adjustments related to prior Visa Class-B share sales and $51 million in merger and integration planning expenses related to the TD Transaction in the Corporate segment. 2022 includes $99 million in merger and integration expenses related to the IBKC merger and TD Transaction and $12 million in derivative valuation adjustments related to prior Visa Class-B share sales in the Corporate segment.
(c)2023 includes $24 million in expense related to the surrender of bank owned life insurance policies and an $11 million benefit from merger-related tax items 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 and nine months ended September 30, 2023 and 2022:

NONINTEREST INCOME DETAIL BY SEGMENT
Three months ended September 30, 2023
(Dollars in millions)Regional BankingSpecialty BankingCorporateConsolidated
Noninterest income:
Deposit transactions and cash management$41 $3 $2 $46 
Fixed income (a)— 28 — 28 
Brokerage, management fees and commissions21 — — 21 
Card and digital banking fees19 — 1 20 
Other service charges and fees7 7 — 14 
Trust services and investment management12 — — 12 
Mortgage banking and title income— 7 — 7 
Other income (c)9 1 15 25 
Total noninterest income$109 $46 $18 $173 
Three months ended September 30, 2022
(Dollars in millions)Regional BankingSpecialty BankingCorporateConsolidated
Noninterest income:
Deposit transactions and cash management$39 $2 $2 $43 
Fixed income (a)— 46 — 46 
Brokerage, management fees and commissions23 — — 23 
Card and digital banking fees19 — 2 21 
Other service charges and fees8 5 — 13 
Trust services and investment management11 — — 11 
Mortgage banking and title income— 9 — 9 
Deferred compensation income — — (3)(3)
Securities gains (losses), net (b)— — 12 12 
Other income (c)10 2 26 38 
Total noninterest income$110 $64 $39 $213 
(a)2023 and 2022 includes $13 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.
Nine months ended September 30, 2023
(Dollars in millions)Regional BankingSpecialty BankingCorporateConsolidated
Noninterest income:
Deposit transactions and cash management$120 $7 $6 $133 
Fixed income (a)— 98 (1)97 
Brokerage, management fees and commissions66 — — 66 
Card and digital banking fees55 1 5 61 
Other service charges and fees23 18 — 41 
Trust services and investment management35 — — 35 
Mortgage banking and title income— 18 — 18 
Deferred compensation income— — 11 11 
Gain on merger termination— — 225 225 
Securities gains (losses), net (b)— — 1 1 
Other income (c)26 5 26 57 
Total noninterest income$325 $147 $273 $745 
Nine months ended September 30, 2022
(Dollars in millions)Regional BankingSpecialty BankingCorporateConsolidated
Noninterest income:
Deposit transactions and cash management$115 $7 $7 $129 
Fixed income (a)— 170 — 170 
Brokerage, management fees and commissions71 — — 71 
Card and digital banking fees57 2 5 64 
Other service charges and fees24 17 — 41 
Trust services and investment management36 — — 36 
Mortgage banking and title income— 65 — 65 
Deferred compensation income— — (24)(24)
Securities gains (losses), net (b)— — 18 18 
Other income (c)34 4 34 72 
Total noninterest income$337 $265 $40 $642 
(a)2023 and 2022 includes $32 million and $33 million, respectively, 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.