XML 24 R11.htm IDEA: XBRL DOCUMENT
v3.21.2

Investment Securities | 9 Months Ended
--- | ---
Sep. 30, 2021
Marketable Securities [Abstract] |
Investment Securities | Investment Securities The following tables summarize FHN’s investment securities as of September 30, 2021 and December 31, 2020:
|  | September 30, 2021
(Dollars in millions) |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Securities available for sale: |  |  |  |  |  |  |  |
U.S. treasuries |  | $ | 603 |  |  | $ | — |  |  | $ | — |  |  | $ | 603 |
Government agency issued MBS |  | 4,324 |  |  | 58 |  |  | (37) |  |  | 4,345 |
Government agency issued CMO |  | 2,234 |  |  | 14 |  |  | (31) |  |  | 2,217 |
Other U.S. government agencies |  | 794 |  |  | 6 |  |  | (12) |  |  | 788 |
States and municipalities |  | 516 |  |  | 10 |  |  | (1) |  |  | 525 |
|  | $ | 8,471 |  |  | $ | 88 |  |  | $ | (81) |  |  | 8,478 |
AFS securities recorded at fair value through earnings: |  |  |  |  |  |  |  |
SBA interest-only strips (a) |  |  |  |  |  |  |  | 16 |
Total securities available for sale (b) |  |  |  |  |  |  |  | $ | 8,494 |
Securities held to maturity: |  |  |  |  |  |  |  |
Government agency issued MBS |  | $ | 229 |  |  | $ | — |  |  | $ | (1) |  |  | $ | 228 |
Government agency issued CMO |  | 75 |  |  | — |  |  | — |  |  | 75 |
Total securities held to maturity |  | $ | 304 |  |  | $ | — |  |  | $ | (1) |  |  | $ | 303 |
(a)SBA interest-only strips are recorded at elected fair value. See Note 17 - Fair Value of Assets and Liabilities for additional information. (b)Includes $7.5 billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes.
|  | December 31, 2020
(Dollars in millions) |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Securities available for sale: |  |  |  |  |  |  |  |
U.S. treasuries |  | $ | 613 |  |  | $ | — |  |  | $ | — |  |  | $ | 613 |
Government agency issued MBS |  | 3,722 |  |  | 92 |  |  | (2) |  |  | 3,812 |
Government agency issued CMO |  | 2,380 |  |  | 29 |  |  | (3) |  |  | 2,406 |
Other U.S. government agencies |  | 672 |  |  | 12 |  |  | — |  |  | 684 |
Corporate and other debt |  | 40 |  |  | 1 |  |  | (1) |  |  | 40 |
States and municipalities |  | 445 |  |  | 15 |  |  | — |  |  | 460 |
|  | $ | 7,872 |  |  | $ | 149 |  |  | $ | (6) |  |  | 8,015 |
AFS securities recorded at fair value through earnings: |  |  |  |  |  |  |  |
SBA interest-only strips (a) |  |  |  |  |  |  |  | 32 |
Total securities available for sale (b) |  |  |  |  |  |  |  | $ | 8,047 |
Securities held to maturity: |  |  |  |  |  |  |  |
Corporates and other debt |  | $ | 10 |  |  | $ | — |  |  | $ | — |  |  | $ | 10 |
Total securities held to maturity |  | $ | 10 |  |  | $ | — |  |  | $ | — |  |  | $ | 10 |
(a)SBA interest-only strips are recorded at elected fair value. See Note 17 - Fair Value of Assets and Liabilities for additional information. (b)Includes $6.4 billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes. The amortized cost and fair value by contractual maturity for the debt securities portfolio as of September 30, 2021 is provided below:
| Held to Maturity |  | Available for Sale
(Dollars in millions) | Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
Within 1 year | $ | — |  |  | $ | — |  |  | $ | 654 |  |  | $ | 654 |
After 1 year through 5 years | — |  |  | — |  |  | 152 |  |  | 153 |
After 5 years through 10 years |  |  | — |  |  | 347 |  |  | 355 |
After 10 years | — |  |  | — |  |  | 760 |  |  | 770 |
Subtotal | — |  |  | — |  |  | 1,913 |  |  | 1,932 |
Government agency issued MBS and CMO (a) | 304 |  |  | 303 |  |  | 6,558 |  |  | 6,562 |
Total | $ | 304 |  |  | $ | 303 |  |  | $ | 8,471 |  |  | $ | 8,494 |
(a)Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Gross gains and losses on sales of AFS securities for the three and nine months ended September 30, 2021 and 2020 were insignificant. Cash proceeds from sales of AFS securities were $35 million and $68 million for the three and nine months ended September 30, 2021, respectively. Cash proceeds from sales of AFS securities for the three and nine months ended September 30, 2020 were $240 million and $249 million, respectively. The following tables provide information on investments within the available-for-sale portfolio that had unrealized losses as of September 30, 2021 and December 31, 2020:
|  | As of September 30, 2021
|  | Less than 12 months |  | 12 months or longer |  | Total
(Dollars in millions) |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Government agency issued MBS |  | $ | 2,101 |  |  | $ | (33) |  |  | $ | 99 |  |  | $ | (4) |  |  | $ | 2,200 |  |  | $ | (37) |
Government agency issued CMO |  | 1,243 |  |  | (25) |  |  | 179 |  |  | (6) |  |  | 1,422 |  |  | (31) |
Other U.S. government agencies |  | 495 |  |  | (12) |  |  | — |  |  | — |  |  | 495 |  |  | (12) |
States and municipalities |  | 107 |  |  | (1) |  |  | — |  |  | — |  |  | 107 |  |  | (1) |
Total |  | $ | 3,946 |  |  | $ | (71) |  |  | $ | 278 |  |  | $ | (10) |  |  | $ | 4,224 |  |  | $ | (81) |
|  | As of December 31, 2020
|  | Less than 12 months |  | 12 months or longer |  | Total
(Dollars in millions) |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
U.S. treasuries |  | $ | 307 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 307 |  |  | $ | — |
Government agency issued MBS |  | 426 |  |  | (2) |  |  | — |  |  | — |  |  | 426 |  |  | (2) |
Government agency issued CMO |  | 586 |  |  | (3) |  |  | — |  |  | — |  |  | 586 |  |  | (3) |
Other U.S. government agencies |  | 80 |  |  | (1) |  |  | — |  |  | — |  |  | 80 |  |  | (1) |
States and municipalities |  | 1 |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | — |
Total |  | $ | 1,400 |  |  | $ | (6) |  |  | $ | — |  |  | $ | — |  |  | $ | 1,400 |  |  | $ | (6) |
FHN has evaluated all AFS debt securities that were in unrealized loss positions in accordance with its accounting policy for recognition of credit losses. No AFS debt securities were determined to have credit losses because the primary cause of the decline in value was attributable to changes in interest rates. Total AIR not included in the fair value or amortized cost basis of AFS debt securities was $23 million and $22 million as of September 30, 2021 and December 31, 2020, respectively. Consistent with FHN's review of the related securities, there were no credit-related write downs of AIR for AFS debt securities during the reporting period. Additionally, for AFS debt securities with unrealized losses, FHN does not intend to sell them and it is more-likely-than-not that FHN will not be required to sell them prior to recovery. Therefore, no write downs of these investments to fair value occurred during the reporting period. For HTM securities, an allowance for credit losses is required to absorb estimated lifetime credit losses. FHN has assessed the risk of credit loss and has determined that no allowance for credit losses for HTM securities was necessary as of September 30, 2021 and December 31, 2020. The carrying amount of equity investments without a readily determinable fair value was $73 million and $57 million at September 30, 2021 and December 31, 2020, respectively. The year-to-date 2021 and 2020 gross amounts of upward and downward valuation adjustments were not significant. Unrealized gains of $1 million were recognized in the three months ended September 30, 2021 and 2020. Unrealized gains of $7 million were recognized for the nine months ended September 30, 2021, and unrealized losses of $4 million were recognized for the nine months ended September 30, 2020, respectively, for equity investments with readily determinable fair values.

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_MarketableSecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration