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Loans and Leases | 12 Months Ended
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Dec. 31, 2021
Receivables [Abstract] |
Loans and Leases | Loans and Leases The loan and lease portfolio is disaggregated into portfolio segments and then further disaggregated into classes for certain disclosures. GAAP defines a portfolio segment as the level at which an entity develops and documents a systematic method for determining its allowance for credit losses. A class is generally a disaggregation of a portfolio segment and is generally determined based on risk characteristics of the loan and FHN’s method for monitoring and assessing credit risk and performance. FHN's loan and lease portfolio segments are commercial and consumer. The classes of loans and leases are: (1) commercial, financial, and industrial, which includes commercial and industrial loans and leases and loans to mortgage companies, (2) commercial real estate, (3) consumer real estate, which includes both real estate installment and home equity lines of credit, and (4) credit card and other. The following table provides the amortized cost basis of loans and leases by portfolio segment and class as of December 31, 2021 and 2020, excluding accrued interest of $134 million and $180 million, respectively, which is included in other assets in the Consolidated Balance Sheets. Table 8.4.1 LOANS AND LEASES BY PORTFOLIO SEGMENT
|  | December 31,
(Dollars in millions) |  | 2021 |  | 2020
Commercial: |  |  |  |
Commercial and industrial (a) (b) |  | $ | 26,550 |  |  | $ | 27,700 |
Loans to mortgage companies |  | 4,518 |  |  | 5,404 |
Total commercial, financial, and industrial |  | 31,068 |  |  | 33,104 |
Commercial real estate |  | 12,109 |  |  | 12,275 |
Consumer: |  |  |  |
HELOC |  | 1,964 |  |  | 2,420 |
Real estate installment loans |  | 8,808 |  |  | 9,305 |
Total consumer real estate |  | 10,772 |  |  | 11,725 |
Credit card and other |  | 910 |  |  | 1,128 |
Loans and leases |  | $ | 54,859 |  |  | $ | 58,232 |
Allowance for loan and lease losses |  | (670) |  |  | (963) |
Net loans and leases |  | $ | 54,189 |  |  | $ | 57,269 |
(a)Includes equipment financing leases of $792 million and $587 million, respectively, as of December 31, 2021 and 2020. (b) Includes PPP loans fully guaranteed by the SBA of $1.0 billion and $4.1 billion as of December 31, 2021 and 2020. Restrictions Loans and leases with carrying values of $36.6 billion and $38.6 billion were pledged as collateral for borrowings at December 31, 2021 and 2020, respectively. At December 31, 2021 and 2020, FHN had pledged $6.9 billion and $7.8 billion of commercial loans to secure potential discount window borrowings from the Federal Reserve Bank, which included all of its first and second lien mortgages, HELOCs, and commercial real estate loans to secure potential borrowings from the FHLB-Cincinnati. Concentrations of Credit Risk Most of the FHN’s business activity is with clients located in the southern United States. FHN’s lending activity is concentrated in its market areas within those states. As of December 31, 2021, FHN had loans to mortgage companies totaling $4.5 billion and loans to finance and insurance companies total $3.5 billion. As a result, 26% of the C&I segment is sensitive to impacts on the financial services industry. Credit Quality Indicators FHN employs a dual grade commercial risk grading methodology to assign an estimate for the probability of default and the loss given default for each commercial loan using factors specific to various industry, portfolio, or product segments that result in a rank ordering of risk and the assignment of grades PD 1 to PD 16. This credit grading system is intended to identify and measure the credit quality of the loan and lease portfolio by analyzing the migration between grading categories. It is also integral to the estimation methodology utilized in determining the ALLL since an allowance is established for pools of commercial loans based on the credit grade assigned. Each PD grade corresponds to an estimated one-year default probability percentage. PD grades are continually evaluated, but require a formal scorecard annually. As a response to the COVID-19 pandemic, FHN identified a segment of its commercial portfolio that required a quarterly re-grading process. As borrowers recover, they can be removed from the quarterly re-grading process with credit officer concurrence. PD 1 through PD 12 are “pass” grades. PD grades 13-16 correspond to the regulatory-defined categories of special mention (13), substandard (14), doubtful (15), and loss (16). Special mention commercial loans and leases have potential weaknesses that, if left uncorrected, may result in deterioration of FHN's credit position at some future date. Substandard commercial loans and leases have well-defined weaknesses and are characterized by the distinct possibility that FHN will sustain some loss if the deficiencies are not corrected. Doubtful commercial loans and leases have the same weaknesses as substandard loans and leases with the added characteristics that the probability of loss is high and collection of the full amount is improbable. The following tables provide the amortized cost basis of the commercial loan and lease portfolio by year of origination and credit quality indicator as of December 31, 2021 and 2020: Table 8.4.2a C&I PORTFOLIO AT YE 2021
|  | December 31, 2021
(Dollars in millions) |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | 2017 |  | Prior to 2017 |  | LMC (a) |  | Revolving Loans |  | Revolving Loans Converted to Term Loans (b) |  | Total
Credit Quality Indicator: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (PD grades 1 through 12) (c) |  | $ | 7,372 |  |  | $ | 3,576 |  |  | $ | 3,439 |  |  | $ | 1,455 |  |  | $ | 1,193 |  |  | $ | 2,267 |  |  | $ | 4,518 |  |  | $ | 6,386 |  |  | $ | 13 |  |  | $ | 30,219 |
Special Mention (PD grade 13) |  | 25 |  |  | 39 |  |  | 50 |  |  | 48 |  |  | 36 |  |  | 43 |  |  | — |  |  | 100 |  |  | 4 |  |  | 345 |
Substandard, Doubtful, or Loss (PD grades 14,15, and 16) |  | 24 |  |  | 61 |  |  | 67 |  |  | 103 |  |  | 24 |  |  | 48 |  |  | — |  |  | 129 |  |  | 48 |  |  | 504 |
Total C&I |  | $ | 7,421 |  |  | $ | 3,676 |  |  | $ | 3,556 |  |  | $ | 1,606 |  |  | $ | 1,253 |  |  | $ | 2,358 |  |  | $ | 4,518 |  |  | $ | 6,615 |  |  | $ | 65 |  |  | $ | 31,068 |
(a)LMC includes non-revolving commercial lines of credit to qualified mortgage companies primarily for the temporary warehousing of eligible mortgage loans prior to the borrower's sale of those mortgage loans to third party investors. The loans are of short duration with maturities less than one year. (b) C&I loans converted from revolving to term in 2021 were not material. (c) Includes PPP loans. Table 8.4.2b C&I PORTFOLIO AT YE 2020
|  | December 31, 2020
(Dollars in millions) |  | 2020 |  | 2019 |  | 2018 |  | 2017 |  | 2016 |  | Prior to 2016 |  | LMC (a) |  | Revolving Loans |  | Revolving Loans Converted to Term Loans (b) |  | Total
Credit Quality Indicator: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (PD grades 1 through 12) (c) |  | $ | 9,060 |  |  | $ | 5,138 |  |  | $ | 2,628 |  |  | $ | 1,748 |  |  | $ | 1,161 |  |  | $ | 2,145 |  |  | $ | 5,404 |  |  | $ | 4,571 |  |  | $ | 60 |  |  | $ | 31,915 |
Special Mention (PD grade 13) |  | 89 |  |  | 93 |  |  | 70 |  |  | 31 |  |  | 37 |  |  | 64 |  |  | — |  |  | 127 |  |  | 1 |  |  | 512 |
Substandard, Doubtful, or Loss (PD grades 14,15, and 16) |  | 182 |  |  | 77 |  |  | 114 |  |  | 50 |  |  | 42 |  |  | 58 |  |  | — |  |  | 95 |  |  | 59 |  |  | 677 |
Total C&I |  | $ | 9,331 |  |  | $ | 5,308 |  |  | $ | 2,812 |  |  | $ | 1,829 |  |  | $ | 1,240 |  |  | $ | 2,267 |  |  | $ | 5,404 |  |  | $ | 4,793 |  |  | $ | 120 |  |  | $ | 33,104 |
(a)LMC includes non-revolving commercial lines of credit to qualified mortgage companies primarily for the temporary warehousing of eligible mortgage loans prior to the borrower's sale of those mortgage loans to third party investors. The loans are of short duration with maturities less than one year. (b) $50 million of C&I loans were converted from revolving to term in 2020. (c) Includes PPP loans. Table 8.4.2c CRE PORTFOLIO AT YE 2021
|  | December 31, 2021
(Dollars in millions) |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | 2017 |  | Prior to 2017 |  | Revolving Loans |  | Revolving Loans Converted to Term Loans |  | Total
Credit Quality Indicator: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (PD grades 1 through 12) |  | $ | 3,441 |  |  | $ | 2,065 |  |  | $ | 2,514 |  |  | $ | 929 |  |  | $ | 691 |  |  | $ | 1,822 |  |  | $ | 204 |  |  | $ | — |  |  | $ | 11,666 |
Special Mention (PD grade 13) |  | 4 |  |  | 26 |  |  | 52 |  |  | 125 |  |  | 20 |  |  | 65 |  |  | — |  |  | — |  |  | 292 |
Substandard, Doubtful, or Loss (PD grades 14,15, and 16) |  | 47 |  |  | — |  |  | 24 |  |  | 3 |  |  | 33 |  |  | 32 |  |  | 12 |  |  | — |  |  | 151 |
Total CRE |  | $ | 3,492 |  |  | $ | 2,091 |  |  | $ | 2,590 |  |  | $ | 1,057 |  |  | $ | 744 |  |  | $ | 1,919 |  |  | $ | 216 |  |  | $ | — |  |  | $ | 12,109 |
Table 8.4.2d CRE PORTFOLIO AT YE 2020
|  | December 31, 2020
(Dollars in millions) |  | 2020 |  | 2019 |  | 2018 |  | 2017 |  | 2016 |  | Prior to 2016 |  | Revolving Loans |  | Revolving Loans Converted to Term Loans |  | Total
Credit Quality Indicator: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (PD grades 1 through 12) |  | $ | 2,477 |  |  | $ | 3,311 |  |  | $ | 1,750 |  |  | $ | 1,140 |  |  | $ | 946 |  |  | $ | 1,800 |  |  | $ | 259 |  |  | $ | 19 |  |  | $ | 11,702 |
Special Mention (PD grade 13) |  | 48 |  |  | 24 |  |  | 117 |  |  | 75 |  |  | 71 |  |  | 54 |  |  | — |  |  | — |  |  | 389 |
Substandard, Doubtful, or Loss (PD grades 14,15, and 16) |  | 30 |  |  | 13 |  |  | 21 |  |  | 42 |  |  | 27 |  |  | 33 |  |  | 18 |  |  | — |  |  | 184 |
Total CRE |  | $ | 2,555 |  |  | $ | 3,348 |  |  | $ | 1,888 |  |  | $ | 1,257 |  |  | $ | 1,044 |  |  | $ | 1,887 |  |  | $ | 277 |  |  | $ | 19 |  |  | $ | 12,275 |
The consumer portfolio is comprised primarily of smaller-balance loans which are very similar in nature in that most are standard products and are backed by residential real estate. Because of the similarities of consumer loan types, FHN is able to utilize the FICO score, among other attributes, to assess the credit quality of consumer borrowers. FICO scores are refreshed on a quarterly basis in an attempt to reflect the recent risk profile of the borrowers. Accruing delinquency amounts are indicators of asset quality within the credit card and other consumer portfolio. The following tables reflect the amortized cost basis by year of origination and refreshed FICO scores for consumer real estate loans as of December 31, 2021 and 2020. Within consumer real estate, classes include HELOC and real estate installment loans. HELOCs are loans which during their draw period are classified as revolving loans. Once the draw period ends and the loan enters its repayment period, the loan converts to a term loan and is classified as revolving loans converted to term loans. All loans classified in the following table as revolving loans or revolving loans converted to term loans are HELOCs. Real estate installment loans are originated as fixed term loans and are classified below in their vintage year. All loans in the following tables classified in a vintage year are real estate installment loans. Table 8.4.3a CONSUMER REAL ESTATE PORTFOLIO AT YE 2021
|  | December 31, 2021
(Dollars in millions) |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | 2017 |  | Prior to 2017 |  | Revolving loans |  | Revolving Loans converted to term loans (a) |  | Total
FICO score 740 or greater |  | $ | 1,594 |  |  | $ | 1,156 |  |  | $ | 825 |  |  | $ | 473 |  |  | $ | 394 |  |  | $ | 1,335 |  |  | $ | 1,086 |  |  | $ | 115 |  |  | $ | 6,978 |
FICO score 720-739 |  | 236 |  |  | 171 |  |  | 109 |  |  | 61 |  |  | 44 |  |  | 209 |  |  | 162 |  |  | 21 |  |  | 1,013 |
FICO score 700-719 |  | 143 |  |  | 112 |  |  | 81 |  |  | 68 |  |  | 45 |  |  | 153 |  |  | 141 |  |  | 23 |  |  | 766 |
FICO score 660-699 |  | 164 |  |  | 131 |  |  | 120 |  |  | 106 |  |  | 44 |  |  | 246 |  |  | 204 |  |  | 44 |  |  | 1,059 |
FICO score 620-659 |  | 42 |  |  | 36 |  |  | 55 |  |  | 23 |  |  | 13 |  |  | 118 |  |  | 66 |  |  | 27 |  |  | 380 |
FICO score less than 620 |  | 26 |  |  | 84 |  |  | 42 |  |  | 32 |  |  | 45 |  |  | 272 |  |  | 42 |  |  | 33 |  |  | 576 |
Total |  | $ | 2,205 |  |  | $ | 1,690 |  |  | $ | 1,232 |  |  | $ | 763 |  |  | $ | 585 |  |  | $ | 2,333 |  |  | $ | 1,701 |  |  | $ | 263 |  |  | $ | 10,772 |
(a) $43 million of HELOC loans were converted from revolving to term in 2021. Table 8.4.3b CONSUMER REAL ESTATE PORTFOLIO AT YE 2020
|  | December 31, 2020
(Dollars in millions) |  | 2020 |  | 2019 |  | 2018 |  | 2017 |  | 2016 |  | Prior to 2016 |  | Revolving loans |  | Revolving Loans converted to term loans (a) |  | Total
FICO score 740 or greater |  | $ | 1,186 |  |  | $ | 1,167 |  |  | $ | 703 |  |  | $ | 610 |  |  | $ | 674 |  |  | $ | 1,719 |  |  | $ | 1,275 |  |  | $ | 159 |  |  | $ | 7,493 |
FICO score 720-739 |  | 157 |  |  | 158 |  |  | 100 |  |  | 77 |  |  | 92 |  |  | 197 |  |  | 186 |  |  | 29 |  |  | 996 |
FICO score 700-719 |  | 122 |  |  | 107 |  |  | 78 |  |  | 76 |  |  | 73 |  |  | 221 |  |  | 177 |  |  | 34 |  |  | 888 |
FICO score 660-699 |  | 130 |  |  | 141 |  |  | 123 |  |  | 75 |  |  | 85 |  |  | 296 |  |  | 264 |  |  | 59 |  |  | 1,173 |
FICO score 620-659 |  | 45 |  |  | 61 |  |  | 37 |  |  | 28 |  |  | 35 |  |  | 127 |  |  | 92 |  |  | 36 |  |  | 461 |
FICO score less than 620 |  | 107 |  |  | 36 |  |  | 52 |  |  | 54 |  |  | 95 |  |  | 261 |  |  | 61 |  |  | 48 |  |  | 714 |
Total |  | $ | 1,747 |  |  | $ | 1,670 |  |  | $ | 1,093 |  |  | $ | 920 |  |  | $ | 1,054 |  |  | $ | 2,821 |  |  | $ | 2,055 |  |  | $ | 365 |  |  | $ | 11,725 |
(a) $36 million of HELOC loans were converted from revolving to term in 2020. The following tables reflect the amortized cost basis by year of origination and refreshed FICO scores for credit card and other loans as of December 31, 2021 and 2020. Table 8.4.4a CREDIT CARD & OTHER PORTFOLIO AT YE 2021
|  | December 31, 2021
(Dollars in millions) |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | 2017 |  | Prior to 2017 |  | Revolving loans |  | Revolving Loans converted to term loans |  | Total
FICO score 740 or greater |  | $ | 56 |  |  | $ | 35 |  |  | $ | 29 |  |  | $ | 23 |  |  | $ | 13 |  |  | $ | 56 |  |  | $ | 200 |  |  | $ | 11 |  |  | $ | 423 |
FICO score 720-739 |  | 14 |  |  | 5 |  |  | 4 |  |  | 3 |  |  | 4 |  |  | 17 |  |  | 46 |  |  | 3 |  |  | 96 |
FICO score 700-719 |  | 8 |  |  | 5 |  |  | 4 |  |  | 4 |  |  | 3 |  |  | 17 |  |  | 42 |  |  | 1 |  |  | 84 |
FICO score 660-699 |  | 25 |  |  | 6 |  |  | 5 |  |  | 6 |  |  | 4 |  |  | 31 |  |  | 98 |  |  | 2 |  |  | 177 |
FICO score 620-659 |  | 4 |  |  | 3 |  |  | 2 |  |  | 4 |  |  | 3 |  |  | 18 |  |  | 22 |  |  | 1 |  |  | 57 |
FICO score less than 620 |  | 24 |  |  | 3 |  |  | 3 |  |  | 4 |  |  | 4 |  |  | 16 |  |  | 18 |  |  | 1 |  |  | 73 |
Total |  | $ | 131 |  |  | $ | 57 |  |  | $ | 47 |  |  | $ | 44 |  |  | $ | 31 |  |  | $ | 155 |  |  | $ | 426 |  |  | $ | 19 |  |  | $ | 910 |
(a) $9 million of other consumer loans were converted from revolving to term in 2021. Table 8.4.4b CREDIT CARD & OTHER PORTFOLIO AT YE 2020
|  | December 31, 2020
(Dollars in millions) |  | 2020 |  | 2019 |  | 2018 |  | 2017 |  | 2016 |  | Prior to 2016 |  | Revolving loans |  | Revolving Loans converted to term loans |  | Total
FICO score 740 or greater |  | $ | 57 |  |  | $ | 52 |  |  | $ | 59 |  |  | $ | 37 |  |  | $ | 23 |  |  | $ | 116 |  |  | $ | 159 |  |  | $ | 5 |  |  | $ | 508 |
FICO score 720-739 |  | 7 |  |  | 7 |  |  | 9 |  |  | 8 |  |  | 8 |  |  | 27 |  |  | 91 |  |  | 2 |  |  | 159 |
FICO score 700-719 |  | 9 |  |  | 8 |  |  | 9 |  |  | 8 |  |  | 4 |  |  | 38 |  |  | 37 |  |  | 3 |  |  | 116 |
FICO score 660-699 |  | 30 |  |  | 12 |  |  | 15 |  |  | 9 |  |  | 9 |  |  | 48 |  |  | 46 |  |  | 3 |  |  | 172 |
FICO score 620-659 |  | 5 |  |  | 5 |  |  | 7 |  |  | 5 |  |  | 10 |  |  | 24 |  |  | 20 |  |  | 1 |  |  | 77 |
FICO score less than 620 |  | 14 |  |  | 7 |  |  | 8 |  |  | 11 |  |  | 9 |  |  | 26 |  |  | 20 |  |  | 1 |  |  | 96 |
Total |  | $ | 122 |  |  | $ | 91 |  |  | $ | 107 |  |  | $ | 78 |  |  | $ | 63 |  |  | $ | 279 |  |  | $ | 373 |  |  | $ | 15 |  |  | $ | 1,128 |
Nonaccrual and Past Due Loans and Leases Loans and leases are placed on nonaccrual if it becomes evident that full collection of principal and interest is at risk, impairment has been recognized as a partial charge-off of principal balance due to insufficient collateral value and past due status, or on a case-by-case basis if FHN continues to receive payments but there are other borrower-specific issues. Included in nonaccrual are loans for which FHN continues to receive payments including residential real estate loans where the borrower has been discharged of personal obligation through bankruptcy. Past due loans are loans contractually past due as to interest or principal payments, but which have not yet been put on nonaccrual status. In accordance with revised Interagency Guidance issued in 2020, FHN is not required to designate loans with deferrals granted in response to COVID-19 as past due because of such deferrals. If a borrower defers payment, this may result in no contractual payments being past due, and as such, loans would not be considered past due during the period of deferral, and as a result, are excluded from loans past due 30-89 days and loans 90+ days past due in the table below. When qualifying COVID-19 deferral periods end, the related loans are subject to past due reporting. The following tables reflect accruing and non-accruing loans and leases by class on December 31, 2021 and 2020: Table 8.4.5a ACCRUING & NON-ACCRUING LOANS & LEASES AT YE 2021
|  | December 31, 2021
|  | Accruing |  | Non-Accruing |  |
(Dollars in millions) |  | Current |  | 30-89 Days Past Due |  | 90+ Days Past Due |  | Total Accruing |  | Current |  | 30-89 Days Past Due |  | 90+ Days Past Due |  | Total Non- Accruing |  | Total Loans
Commercial, financial, and industrial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
C&I (a) |  | $ | 26,367 |  |  | $ | 53 |  |  | $ | 5 |  |  | $ | 26,425 |  |  | $ | 97 |  |  | $ | 1 |  |  | $ | 27 |  |  | $ | 125 |  |  | $ | 26,550 |
Loans to mortgage companies |  | 4,518 |  |  | — |  |  | — |  |  | 4,518 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 4,518 |
Total commercial, financial, and industrial |  | 30,885 |  |  | 53 |  |  | 5 |  |  | 30,943 |  |  | 97 |  |  | 1 |  |  | 27 |  |  | 125 |  |  | 31,068 |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
CRE (b) |  | 12,087 |  |  | 13 |  |  | — |  |  | 12,100 |  |  | 6 |  |  | 1 |  |  | 2 |  |  | 9 |  |  | 12,109 |
Consumer real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
HELOC (c) |  | 1,906 |  |  | 7 |  |  | 6 |  |  | 1,919 |  |  | 34 |  |  | 2 |  |  | 9 |  |  | 45 |  |  | 1,964 |
Real estate installment loans (d) |  | 8,658 |  |  | 30 |  |  | 27 |  |  | 8,715 |  |  | 44 |  |  | 3 |  |  | 46 |  |  | 93 |  |  | 8,808 |
Total consumer real estate |  | 10,564 |  |  | 37 |  |  | 33 |  |  | 10,634 |  |  | 78 |  |  | 5 |  |  | 55 |  |  | 138 |  |  | 10,772 |
Credit card and other: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit card |  | 292 |  |  | 2 |  |  | 2 |  |  | 296 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 296 |
Other |  | 608 |  |  | 3 |  |  | — |  |  | 611 |  |  | 1 |  |  | — |  |  | 2 |  |  | 3 |  |  | 614 |
Total credit card and other |  | 900 |  |  | 5 |  |  | 2 |  |  | 907 |  |  | 1 |  |  | — |  |  | 2 |  |  | 3 |  |  | 910 |
Total loans and leases |  | $ | 54,436 |  |  | $ | 108 |  |  | $ | 40 |  |  | $ | 54,584 |  |  | $ | 182 |  |  | $ | 7 |  |  | $ | 86 |  |  | $ | 275 |  |  | $ | 54,859 |
(a) $99 million of C&I loans are nonaccrual loans that have been specifically reviewed for impairment with no related allowance. (b) $5 million of CRE loans are nonaccrual loans that have been specifically reviewed for impairment with no related allowance. (c) $7 million of HELOC loans are nonaccrual loans that have been specifically reviewed for impairment with no related allowance. (d) $50 million of real estate installment loans are nonaccrual loans that have been specifically reviewed for impairment with no related allowance. Table 8.4.5b ACCRUING & NON-ACCRUING LOANS & LEASES AT YE 2020
|  | December 31, 2020
|  | Accruing |  | Non-Accruing |  |
(Dollars in millions) |  | Current |  | 30-89 Days Past Due |  | 90+ Days Past Due |  | Total Accruing |  | Current |  | 30-89 Days Past Due |  | 90+ Days Past Due |  | Total Non- Accruing |  | Total Loans
Commercial, financial, and industrial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
C&I (a) |  | $ | 27,541 |  |  | $ | 15 |  |  | $ | — |  |  | $ | 27,556 |  |  | $ | 88 |  |  | $ | 12 |  |  | $ | 44 |  |  | $ | 144 |  |  | $ | 27,700 |
Loans to mortgage companies |  | 5,404 |  |  | — |  |  | — |  |  | 5,404 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 5,404 |
Total commercial, financial, and industrial |  | 32,945 |  |  | 15 |  |  | — |  |  | 32,960 |  |  | 88 |  |  | 12 |  |  | 44 |  |  | 144 |  |  | 33,104 |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
CRE (b) |  | 12,194 |  |  | 23 |  |  | — |  |  | 12,217 |  |  | 10 |  |  | 42 |  |  | 6 |  |  | 58 |  |  | 12,275 |
Consumer real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
HELOC |  | 2,336 |  |  | 13 |  |  | 11 |  |  | 2,360 |  |  | 43 |  |  | 3 |  |  | 14 |  |  | 60 |  |  | 2,420 |
Real estate installment loans |  | 9,138 |  |  | 40 |  |  | 5 |  |  | 9,183 |  |  | 63 |  |  | 9 |  |  | 50 |  |  | 122 |  |  | 9,305 |
Total consumer real estate |  | 11,474 |  |  | 53 |  |  | 16 |  |  | 11,543 |  |  | 106 |  |  | 12 |  |  | 64 |  |  | 182 |  |  | 11,725 |
Credit card and other: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit card |  | 279 |  |  | 3 |  |  | 1 |  |  | 283 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 283 |
Other |  | 838 |  |  | 6 |  |  | — |  |  | 844 |  |  | 1 |  |  | — |  |  | 1 |  |  | 2 |  |  | 845 |
Total credit card and other |  | 1,117 |  |  | 9 |  |  | 1 |  |  | 1,127 |  |  | 1 |  |  | — |  |  | 1 |  |  | 2 |  |  | 1,128 |
Total loans and leases |  | $ | 57,730 |  |  | $ | 100 |  |  | $ | 17 |  |  | $ | 57,847 |  |  | $ | 205 |  |  | $ | 66 |  |  | $ | 115 |  |  | $ | 386 |  |  | $ | 58,232 |
(a) $101 million of C&I loans are nonaccrual loans that have been specifically reviewed for impairment with no related allowance. Collateral-Dependent Loans Collateral-dependent loans are defined as loans for which repayment is expected to be derived substantially through the operation or sale of the collateral and where the borrower is experiencing financial difficulty. At a minimum, the estimated value of the collateral for each loan equals the current book value. As of December 31, 2021 and 2020, FHN had commercial loans with amortized cost of approximately $120 million and $167 million, respectively, that were based on the value of underlying collateral. Collateral-dependent C&I and CRE loans totaled $115 million and $5 million, respectively, at December 31, 2021. The collateral for these loans generally consists of business assets including land, buildings, equipment and financial assets. During the years ended December 31, 2021 and 2020, FHN recognized total charge-offs of approximately $26 million and $36 million, respectively, on these loans related to reductions in estimated collateral values. Consumer HELOC and installment loans with amortized cost based on the value of underlying real estate collateral were approximately $7 million and $20 million, respectively, as of December 31, 2021, and $9 million and $26 million, respectively, as of December 31, 2020. Charge-offs on collateral-dependent consumer loans were $1 million during the year ended December 31, 2021, and were not significant during the year ended December 31, 2020. Troubled Debt Restructurings As part of FHN’s ongoing risk management practices, FHN attempts to work with borrowers when necessary to extend or modify loan terms to better align with their current ability to repay. Extensions and modifications to loans are made in accordance with internal policies and guidelines which conform to regulatory guidance. Each occurrence is unique to the borrower and is evaluated separately. A modification is classified as a TDR if the borrower is experiencing financial difficulty and it is determined that FHN has granted a concession to the borrower. FHN may determine that a borrower is experiencing financial difficulty if the borrower is currently in default on any of its debt, or if it is probable that a borrower may default in the foreseeable future. Many aspects of a borrower’s financial situation are assessed when determining whether they are experiencing financial difficulty. Concessions could include extension of the maturity date, reductions of the interest rate (which may make the rate lower than current market for a new loan with similar risk), reduction or forgiveness of accrued interest, or principal forgiveness. The assessments of whether a borrower is experiencing (or is likely to experience) financial difficulty, and whether a concession has been granted, are subjective in nature and management’s judgment is required when determining whether a modification is classified as a TDR. In accordance with regulatory guidance, loans were not accounted for as TDRs and have been excluded from the disclosures below. For loan modifications that were made during the years ended December 31, 2021 and 2020 that met the TDR relief provisions outlined in either the CARES Act, as extended by the CAA, or revised Interagency Guidance, FHN has excluded these modifications from consideration as TDRs, and has excluded loans with these qualifying modifications from designation as a TDR in the information and discussion that follows. See Note 1 - Significant Accounting Policies for further discussion regarding TDRs and loan modifications. For all classes within the commercial portfolio segment, TDRs are typically modified through forbearance agreements (generally 6 to 12 months). Forbearance agreements could include reduced interest rates, reduced payments, release of guarantor, or entering into short sale agreements. FHN’s proprietary modification programs for consumer loans are generally structured using parameters of U.S. government-sponsored programs such as the former Home Affordable Modification Program. Within the HELOC and real estate installment loans classes of the consumer portfolio segment, TDRs are typically modified by reducing the interest rate (in increments of 25 basis points to a minimum of 1% for up to 5 years) and a possible maturity date extension to reach an affordable housing debt-to-income ratio. After 5 years, the interest rate generally returns to the original interest rate prior to modification; for certain modifications, the modified interest rate increases 2% per year until the original interest rate prior to modification is achieved. Mortgage TDRs are typically modified by reducing the interest rate (in increments of 25 basis points to a minimum of 2% for up to 5 years) and a possible maturity date extension to reach an affordable housing debt-to-income ratio. After 5 years, the interest rate steps up 1% every year until it reaches the Federal Home Loan Mortgage Corporation Weekly Survey Rate cap. Contractual maturities may be extended to 40 years on permanent mortgages and to 30 years for consumer real estate loans. Within the credit card class of the consumer portfolio segment, TDRs are typically modified through either a short-term credit card hardship program or a longer-term credit card workout program. In the credit card hardship program, borrowers may be granted rate and payment reductions for 6 months to 1 year. In the credit card workout program, clients are granted a rate reduction to 0% and term extensions for up to 5 years to pay off the remaining balance. Despite the absence of a loan modification, the discharge of personal liability through bankruptcy proceedings is considered a concession. As a result, FHN classifies all non-reaffirmed residential real estate loans discharged in Chapter 7 bankruptcy as nonaccruing TDRs. On December 31, 2021 and 2020, FHN had $206 million and $307 million of portfolio loans classified as TDRs, respectively. Additionally, $35 million and $42 million of loans held for sale as of December 31, 2021 and 2020, respectively, were classified as TDRs. The following table presents the end of period balance for loans modified in a TDR during the years ended December 31, 2021 and 2020: Table 8.4.6 LOANS MODIFIED IN A TDR
|  | 2021 |  | 2020
(Dollars in millions) |  | Number |  | Pre-Modification Outstanding Recorded Investment |  | Post-Modification Outstanding Recorded Investment |  | Number |  | Pre-Modification Outstanding Recorded Investment |  | Post-Modification Outstanding Recorded Investment
C&I |  | 32 |  |  | $ | 37 |  |  | $ | 34 |  |  | 112 |  |  | $ | 195 |  |  | $ | 188 |
CRE |  | 1 |  |  | 12 |  |  | 10 |  |  | 19 |  |  | 15 |  |  | 15 |
HELOC |  | 25 |  |  | 3 |  |  | 3 |  |  | 64 |  |  | 5 |  |  | 5 |
Real estate installment loans |  | 87 |  |  | 14 |  |  | 14 |  |  | 117 |  |  | 20 |  |  | 19 |
Credit card and other |  | 51 |  |  | — |  |  | — |  |  | 56 |  |  | 1 |  |  | 1 |
Total TDRs |  | 196 |  |  | $ | 66 |  |  | $ | 61 |  |  | 368 |  |  | $ | 236 |  |  | $ | 228 |
The following table presents TDRs which re-defaulted during 2021 and 2020, and as to which the modification occurred 12 months or less prior to the re-default. For purposes of this disclosure, FHN generally defines payment default as 30 or more days past due. Table 8.4.7 LOANS MODIFIED IN A TDR THAT RE-DEFAULTED
|  | 2021 |  | 2020
(Dollars in millions) |  | Number |  | Recorded Investment |  | Number |  | Recorded Investment
C&I |  | 18 |  |  | $ | 5 |  |  | 9 |  |  | $ | 1 |
CRE |  | 6 |  |  | 19 |  |  | — |  |  | — |
HELOC |  | 1 |  |  | — |  |  | 8 |  |  | — |
Real estate installment loans |  | 9 |  |  | 5 |  |  | 18 |  |  | 1 |
Credit card and other |  | 4 |  |  | — |  |  | 24 |  |  | — |
Total TDRs |  | 38 |  |  | $ | 29 |  |  | 59 |  |  | $ | 2 |

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