Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Goodwill

FHN performed the required annual goodwill impairment test as of October 1, 2023. The annual qualitative impairment test did not indicate impairment in any of FHN’s reporting units as of the testing date. Following the testing date, management evaluated the events and circumstances that could indicate that goodwill might be impaired and concluded that it is not more likely than not that goodwill was impaired. If there are any triggering events between annual periods, management will evaluate whether an impairment analysis is warranted.

Accounting estimates and assumptions were made about FHN’s future performance and cash flows, as well as other prevailing market factors (e.g., interest rates, economic trends, etc.) when determining fair value as part of the goodwill impairment test. While management used the best information available to estimate future performance for each reporting unit, future adjustments to management’s projections may be necessary if conditions differ substantially from the assumptions used in making the estimates.

The following is a summary of goodwill by reportable segment included in the Consolidated Balance Sheets as of December 31, 2023:

Table 8.6.1

GOODWILL

(Dollars in millions)	Regional Banking		Specialty Banking		Total
December 31, 2020	$	880	$	631	$	1,511
Additions	—		—		—
December 31, 2021	$	880	$	631	$	1,511
Additions	—		—		—
December 31, 2022	$	880	$	631	$	1,511
Additions	—		—		—
Divestitures (a)	—		(1)		(1)
December 31, 2023	$	880	$	630	$	1,510

(a) Reduction in goodwill is related to the divestiture of FHN Financial Main Street Advisors assets in December 2023.

Other intangible assets

The following table, which excludes fully amortized intangibles, presents other intangible assets included in the Consolidated Balance Sheets:

Table 8.6.2

OTHER INTANGIBLE ASSETS

	December 31, 2023						December 31, 2022
(Dollars in millions)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Value		Gross Carrying Amount		Accumulated Amortization		Net Carrying Value
Core deposit intangibles	$	368	$	(208)	$	160	$	371	$	(171)	$	200
Client relationships	32		(16)		16		32		(13)		19
Other (a)	27		(17)		10		27		(12)		15
Total	$	427	$	(241)	$	186	$	430	$	(196)	$	234

(a)Includes non-compete covenants and purchased credit card intangible assets. Also includes state banking licenses which are not subject to amortization.

Amortization expense was $47 million, $51 million, and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively. The following table shows the aggregated amortization expense estimated, as of December 31, 2023, for the next five years:

Table 8.6.3

ESTIMATED AMORTIZATION EXPENSE

(Dollars in millions)
2024	$	44
2025	38
2026	33
2027	29
2028	17