Term Borrowings

12 Months Ended

Dec. 31, 2023

Term borrowings include senior and subordinated borrowings with original maturities greater than one year. The following table presents information pertaining to term borrowings as of December 31, 2023 and 2022:

Table 8.10.1

TERM BORROWINGS


(Dollars in millions)	2023		2022
First Horizon Bank:
Subordinated notes (a)
Maturity date – May 1, 2030 - 5.75%	$	448	$	448
Other collateralized borrowings - Maturity date – December 22, 2037
5.95% on December 31, 2023 and 5.07% on December 31, 2022 (b)	88		87
Other collateralized borrowings - SBA loans (c)	3		3
First Horizon Corporation:
Senior notes

Maturity date – May 26, 2023 - 3.55%	—		450
Maturity date – May 26, 2025 - 4.00%	349		349
Junior subordinated debentures (d)






Maturity date - June 28, 2035 - 7.33% on December 31, 2023 and 6.45% on December 31, 2022	3		3
Maturity date - December 15, 2035 - 7.02% on December 31, 2023 and 6.14% on December 31, 2022	18		18
Maturity date - March 15, 2036 - 7.05% on December 31, 2023 and 6.17% on December 31, 2022	9		9
Maturity date - March 15, 2036 - 7.19% on December 31, 2023 and 6.31% on December 31, 2022	12		12
Maturity date - June 30, 2036 - 6.91% on December 31, 2023 and 6.05% on December 31, 2022	28		27
Maturity date - July 7, 2036 - 7.21% on December 31, 2023 and 5.63% on December 31, 2022	19		18


Maturity date - June 15, 2037 - 7.30% on December 31, 2023 and 6.42% on December 31, 2022	52		52
Maturity date - September 6, 2037 - 7.05% on December 31, 2023 and 6.16% on December 31, 2022	9		9




Notes payable - New market tax credit investments; 7 to 35 year term, 0.93% to 4.95%	65		66
FT Real Estate Securities Company, Inc.:
Cumulative preferred stock (e)
Maturity date – March 31, 2031 – 9.50%	47		46






Total	$	1,150	$	1,597

(a)Qualifies for Tier 2 capital under the risk-based capital guidelines for First Horizon Bank as well as First Horizon Corporation up to certain limits for minority interest capital instruments.

(b)Secured by trust preferred loans.

(c)Collateralized borrowings associated with SBA loan sales that did not meet sales criteria. The loans have remaining terms of 2 to 25 years. These borrowings had a weighted average interest rate of 4.81% and 5.13% on December 31, 2023 and 2022, respectively.

(d)Acquired in conjunction with the acquisition of CBF. A portion qualifies for Tier 2 capital under the risk-based capital guidelines.

(e)Qualifies for Tier 2 capital under the risk-based capital guidelines for both First Horizon Bank and First Horizon Corporation up to certain limits for minority interest capital instruments.

Annual principal repayment requirements as of December 31, 2023 are as follows:

Table 8.10.2

ANNUAL PRINCIPAL REPAYMENT SCHEDULE


(Dollars in millions)
2024	$	6
2025	350
2026	—
2027	—
2028 and after	812

In conjunction with its acquisition of CBF, FHN obtained junior subordinated debentures, each of which is held by a wholly-owned trust that has issued trust preferred securities to external investors and loaned the funds to FHN as junior subordinated debt. The book value for each

issuance represents the purchase accounting fair value as of the closing date less accumulated amortization of the associated discount, as applicable. Through various contractual arrangements, FHN assumed a full and unconditional guarantee for each trust’s obligations with respect to the securities. While the maturity dates are typically 30 years from the original issuance date, FHN has the option to redeem each of the junior subordinated debentures at par on any future interest payment date, which would trigger redemption of the related trust preferred securities. During 2021, FHN redeemed $94 million of legacy IBKC junior subordinated debt underlying multiple issuances of trust preferred securities. The redemption resulted in a loss on debt extinguishment of $26 million. A portion of FHN's remaining junior subordinated notes qualifies as Tier 2 capital under the risk-based capital guidelines.