Variable Interest Entities (Tables)

12 Months Ended

Dec. 31, 2023

Variable Interest Entities [Abstract]

Schedule of VIEs Consolidated By FHN

The following table summarizes the carrying value of assets and liabilities associated with rabbi trusts used for deferred compensation plans which are consolidated by FHN as of December 31, 2023 and 2022:

Table 8.20.1

CONSOLIDATED VIEs

(Dollars in millions)	December 31, 2023		December 31, 2022
Assets:
Other assets	$	177	$	181
Liabilities:
Other liabilities	$	150	$	150

Schedule of the Impact of Qualifying LIHTC Investments

The following table summarizes the impact to income tax expense on the Consolidated Statements of Income for the years ended December 31, 2023, 2022 and 2021 for LIHTC investments accounted for under the proportional amortization method.

Table 8.20.2

LIHTC IMPACTS ON TAX EXPENSE

(Dollars in millions)	2023		2022		2021
Income tax expense (benefit):
Amortization of qualifying LIHTC investments	$	54	$	44	$	26
Low income housing tax credits	(55)		(48)		(32)
Other tax benefits related to qualifying LIHTC investments	(13)		(12)		(7)

Schedule of VIEs Not Consolidated By FHN

The following tables summarize FHN’s nonconsolidated VIEs as of December 31, 2023 and 2022:

Table 8.20.3

NONCONSOLIDATED VIEs AT DECEMBER 31, 2023

(Dollars in millions)	Maximum Loss Exposure		Liability Recognized		Classification
Type:
Low income housing partnerships	$	587	$	223	(a)
Other tax credit investments (b)	79		64		Other assets
Small issuer trust preferred holdings (c)	173		—		Loans and leases
On-balance sheet trust preferred securitization	26		88		(d)
Holdings of agency mortgage-backed securities (c)	8,402		—		(e)
Commercial loan modifications to borrowers experiencing financial difficulty (f)	129		—		Loans and leases
Proprietary trust preferred issuances (g)	—		167		Term borrowings

(a)    Maximum loss exposure represents $364 million of current investments and $223 million of accrued contractual funding commitments. Accrued funding commitments represent unconditional contractual obligations for future funding events and are recognized in other liabilities. FHN currently expects to be required to fund these accrued commitments by the end of 2024.

(b)    Maximum loss exposure represents the value of current investments.

(c)    Maximum loss exposure represents the value of current investments. A liability is not recognized as FHN is solely a holder of the trusts’ securities.

(d)    Includes $113 million classified as loans and leases and $2 million classified as trading securities, which are offset by $88 million classified as term borrowings.

(e)    Includes $450 million classified as trading securities, $1.3 billion classified as securities held to maturity, and $6.6 billion classified as securities available for sale.

(f)    Maximum loss exposure represents $129 million of current receivables with no additional contractual funding commitments on loans related to commercial loan modifications to borrowers experiencing financial difficulty.

(g)    No exposure to loss due to nature of FHN's involvement.

Table 8.20.4

NONCONSOLIDATED VIEs AT DECEMBER 31, 2022

(Dollars in millions)	Maximum Loss Exposure		Liability Recognized		Classification
Type:
Low income housing partnerships	$	463	$	154	(a)
Other tax credit investments (b)	85		67		Other assets
Small issuer trust preferred holdings (c)	171		—		Loans and leases
On-balance sheet trust preferred securitization	27		87		(d)
Holdings of agency mortgage-backed securities (c)	8,652		—		(e)
Commercial loan troubled debt restructurings (f)	53		—		Loans and leases
Proprietary trust preferred issuances (g)	—		167		Term borrowings

(a)Maximum loss exposure represents $309 million of current investments and $154 million of accrued contractual funding commitments. Accrued funding commitments represent unconditional contractual obligations for future funding events and are recognized in other liabilities. FHN currently expects to be required to fund these accrued commitments by the end of 2024.

(b)Maximum loss exposure represents the value of current investments.

(c)Maximum loss exposure represents the value of current investments. A liability is not recognized as FHN is solely a holder of the trusts’ securities.

(d)Includes $112 million classified as loans and leases and $2 million classified as trading securities, which are offset by $87 million classified as term borrowings.

(e)Includes $205 million classified as trading securities, $1.4 billion classified as securities held to maturity, and $7.1 billion classified as securities available for sale.

(f)Maximum loss exposure represents $53 million of current receivables with no additional contractual funding commitments on loans related to commercial borrowers involved in a troubled debt restructuring.

(g)No exposure to loss due to nature of FHN's involvement.