Derivatives (Tables)

12 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivatives Associated With Fixed Income Trading Activities

The following table summarizes derivatives associated with FHNF's trading activities as of December 31, 2023 and 2022:

Table 8.21.1

DERIVATIVES ASSOCIATED WITH TRADING

	December 31, 2023
(Dollars in millions)	Notional		Assets		Liabilities
Customer interest rate contracts	$	4,067	$	22	$	197
Offsetting upstream interest rate contracts	4,273		135		23
Forwards and futures purchased	777		9		—
Forwards and futures sold	912		—		9

	December 31, 2022
(Dollars in millions)	Notional		Assets		Liabilities
Customer interest rate contracts	$	3,076	$	3	$	270
Offsetting upstream interest rate contracts	3,076		91		6
Option contracts purchased	40		—		—
Forwards and futures purchased	1,127		5		2
Forwards and futures sold	1,256		4		5

Schedule of Derivatives Associated With Interest Rate Risk Management Activities

The following table summarizes FHN’s derivatives associated with interest rate risk management activities as of December 31, 2023 and 2022:

Table 8.21.2

DERIVATIVES ASSOCIATED WITH INTEREST RATE RISK MANAGEMENT

	December 31, 2023
(Dollars in millions)	Notional		Assets		Liabilities
Customer Interest Rate Contracts Hedging
Hedging Instruments and Hedged Items:
Customer interest rate contracts	$	8,375	$	21	$	392
Offsetting upstream interest rate contracts	8,375		389		22

	December 31, 2022
(Dollars in millions)	Notional		Assets		Liabilities
Customer Interest Rate Contracts Hedging
Hedging Instruments and Hedged Items:
Customer interest rate contracts	$	8,377	$	3	$	570
Offsetting upstream interest rate contracts	8,377		351		5

Schedule of Gains/(Losses) on Derivatives Associated with Interest Rate Risk Management Activities

The following table summarizes gains (losses) on FHN’s derivatives associated with interest rate risk management activities for the years ended December 31, 2023, 2022, and 2021:

Table 8.21.3

DERIVATIVE GAINS (LOSSES) ASSOCIATED WITH INTEREST RATE RISK MANAGEMENT

	Year Ended December 31,
	2023		2022		2021
(Dollars in millions)	Gains (Losses)		Gains (Losses)		Gains (Losses)
Customer Interest Rate Contracts Hedging
Hedging Instruments and Hedged Items:
Customer interest rate contracts (a)	$	195	$	(744)	$	(268)
Offsetting upstream interest rate contracts (a)	(195)		744		268

(a)Gains (losses) included in other expense within the Consolidated Statements of Income.

Schedule of Derivative Associated With Cash Flow Hedges

The following tables summarize FHN’s derivative activities associated with cash flow hedges as of December 31, 2023 and 2022:

Table 8.21.4

DERIVATIVES ASSOCIATED WITH CASH FLOW HEDGES

	December 31, 2023
(Dollars in millions)	Notional		Assets		Liabilities
Cash Flow Hedges
Hedging Instruments:
Interest rate contracts	$	5,200	$	—	$	32
Hedged Items:
Variability in cash flows related to debt instruments (primarily loans)	N/A		$	5,200	N/A

	December 31, 2022
(Dollars in millions)	Notional		Assets		Liabilities
Cash Flow Hedges
Hedging Instruments:
Interest rate contracts	$	5,350	$	—	$	71
Hedged Items:
Variability in cash flows related to debt instruments (primarily loans)	N/A		$	5,350	N/A

Schedule of Gains/(Losses) on Derivatives Associated with Cash Flow Hedges

The following table summarizes gains (losses) on FHN’s derivatives associated with cash flow hedges for the years ended December 31, 2023, 2022, and 2021:

Table 8.21.5

DERIVATIVE GAINS (LOSSES) ASSOCIATED WITH CASH FLOW HEDGES

	Year Ended December 31,
	2023		2022		2021
(Dollars in millions)	Gains (Losses)		Gains (Losses)		Gains (Losses)
Cash Flow Hedges
Hedging Instruments:
Interest rate contracts (a)	$	45	$	195	$	29
Gain (loss) recognized in other comprehensive income (loss)	52		15		(3)
Gain (loss) reclassified from AOCI into interest income	47		(129)		(7)

(a)Approximately $9 million of pre-tax losses are expected to be reclassified into earnings in the next twelve months.

Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The notional and fair values of these contracts are presented in the table below.

Table 8.21.6

DERIVATIVES ASSOCIATED WITH MORTGAGE BANKING HEDGES

	December 31, 2023
(Dollars in millions)	Notional		Assets		Liabilities
Mortgage Banking Hedges
Option contracts written	$	55	$	1	$	—
Forward contracts written	93		—		1

	December 31, 2022
(Dollars in millions)	Notional		Assets		Liabilities
Mortgage Banking Hedges
Option contracts written	$	35	$	—	$	—
Forward contracts written	61		—		—

The following table summarizes gains (losses) on FHN's derivatives associated with mortgage banking activities for the years ended December 31, 2023 and 2022:

Table 8.21.7

DERIVATIVE GAINS (LOSSES) ASSOCIATED WITH MORTGAGE BANKING HEDGES

	Year Ended December 31,
	2023		2022		2021
(Dollars in millions)	Gains (Losses)		Gains (Losses)		Gains (Losses)
Mortgage Banking Hedges
Option contracts written	$	—	$	3	$	15
Forward contracts written	1		32		11

Schedule of Derivative Assets And Collateral Received

The following table provides details of derivative assets and collateral received as presented on the Consolidated Balance Sheets as of December 31, 2023 and 2022:

Table 8.21.8

DERIVATIVE ASSETS & COLLATERAL RECEIVED

							Gross amounts not offset in the Balance Sheets
(Dollars in millions)	Gross amounts of recognized assets		Gross amounts offset in the Balance Sheets		Net amounts of assets presented in the Balance Sheets (a)		Derivative liabilities available for offset		Collateral received		Net amount
Derivative assets:
December 31, 2023
Interest rate derivative contracts	$	567	$	—	$	567	$	(75)	$	(486)	$	6
Forward contracts	9		—		9		(4)		(3)		2
	$	576	$	—	$	576	$	(79)	$	(489)	$	8
December 31, 2022
Interest rate derivative contracts	$	449	$	—	$	449	$	(58)	$	(378)	$	13
Forward contracts	9		—		9		(6)		(2)		1
	$	458	$	—	$	458	$	(64)	$	(380)	$	14

(a)Included in other assets on the Consolidated Balance Sheets. As of December 31, 2023 and 2022, $1 million and $2 million, respectively, of derivative assets have been excluded from these tables because they are generally not subject to master netting or similar agreements.

Schedule of Derivative Liabilities and Collateral Pledged

The following table provides details of derivative liabilities and collateral pledged as presented on the Consolidated Balance Sheets as of December 31, 2023 and 2022:

Table 8.21.9

DERIVATIVE LIABILITIES & COLLATERAL PLEDGED

							Gross amounts not offset  in the Balance Sheets
(Dollars in millions)	Gross amounts of recognized liabilities		Gross  amounts offset in the Balance Sheets		Net amounts of liabilities presented in the Balance Sheets (a)		Derivative assets available for offset		Collateral pledged		Net amount
Derivative liabilities:
December 31, 2023
Interest rate derivative contracts	$	666	$	—	$	666	$	(75)	$	(164)	$	427
Forward contracts	9		—		9		(4)		(5)		—
	$	675	$	—	$	675	$	(79)	$	(169)	$	427
December 31, 2022
Interest rate derivative contracts	$	921	$	—	$	921	$	(58)	$	(175)	$	688
Forward contracts	8		—		8		(6)		(1)		1
	$	929	$	—	$	929	$	(64)	$	(176)	$	689

(a)Included in other liabilities on the Consolidated Balance Sheets. As of December 31, 2023 and 2022, $24 million and $29 million, respectively, of derivative liabilities (primarily Visa-related derivatives) have been excluded from these tables because they are generally not subject to master netting or similar agreements.