Business Segment Information (Tables)

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Schedule of Segment Financial Information

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 Banking		Specialty Banking		Corporate		Consolidated
Net interest income (expense)	$	583	$	135	$	(113)	$	605
Provision for credit losses	104		6		—		110
Noninterest income	109		46		18		173
Noninterest expense (b)	318		89		67		474
Income (loss) before income taxes	270		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 Banking		Specialty Banking		Corporate		Consolidated
Net interest income (expense)	$	518	$	138	$	6	$	662
Provision for credit losses	43		17		—		60
Noninterest income (a)	110		64		39		213
Noninterest expense (b)	303		105		61		469
Income (loss) before income taxes	282		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 Banking		Specialty Banking		Corporate		Consolidated
Net interest income (expense)	$	1,781	$	390	$	(248)	$	1,923
Provision for credit losses	189		26		(5)		210
Noninterest income (a)	325		147		273		745
Noninterest expense (b)	960		270		278		1,508
Income (loss) before income taxes	957		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 Banking		Specialty Banking		Corporate		Consolidated
Net interest income (expense)	$	1,410	$	423	$	(150)	$	1,683
Provision for credit losses	64		(4)		(10)		50
Noninterest income (a)	337		265		40		642
Noninterest expense (b)	906		352		192		1,450
Income (loss) before income taxes	777		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 Banking		Specialty Banking		Corporate		Consolidated
Noninterest income:
Deposit transactions and cash management	$	41	$	3	$	2	$	46
Fixed income (a)	—		28		—		28
Brokerage, management fees and commissions	21		—		—		21
Card and digital banking fees	19		—		1		20
Other service charges and fees	7		7		—		14
Trust services and investment management	12		—		—		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 Banking		Specialty Banking		Corporate		Consolidated
Noninterest income:
Deposit transactions and cash management	$	39	$	2	$	2	$	43
Fixed income (a)	—		46		—		46
Brokerage, management fees and commissions	23		—		—		23
Card and digital banking fees	19		—		2		21
Other service charges and fees	8		5		—		13
Trust services and investment management	11		—		—		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 Banking		Specialty Banking		Corporate		Consolidated
Noninterest income:
Deposit transactions and cash management	$	120	$	7	$	6	$	133
Fixed income (a)	—		98		(1)		97
Brokerage, management fees and commissions	66		—		—		66
Card and digital banking fees	55		1		5		61
Other service charges and fees	23		18		—		41
Trust services and investment management	35		—		—		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 Banking		Specialty Banking		Corporate		Consolidated
Noninterest income:
Deposit transactions and cash management	$	115	$	7	$	7	$	129
Fixed income (a)	—		170		—		170
Brokerage, management fees and commissions	71		—		—		71
Card and digital banking fees	57		2		5		64
Other service charges and fees	24		17		—		41
Trust services and investment management	36		—		—		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.