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Business Segment Information | 9 Months Ended
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Sep. 30, 2022
Segment Reporting [Abstract] |
Business Segment Information | Business Segment Information FHN's operating segments are composed of the following: •Regional Banking segment offers financial products and services, including traditional lending and deposit taking, to consumer and commercial clients primarily in the southern U.S. and other selected markets. Regional Banking also provides investment, wealth management, financial planning, trust and asset management services for consumer clients. •Specialty Banking segment consists of lines of business that deliver product offerings and services with specialized industry knowledge. Specialty Banking’s lines of business include asset-based lending, mortgage warehouse lending, commercial real estate, franchise finance, correspondent banking, equipment finance, mortgage, and title insurance. In addition to traditional lending and deposit taking, Specialty Banking also delivers treasury management solutions, loan syndications, and international banking. Additionally, Specialty Banking has a line of business focused on fixed income securities sales, trading, underwriting, and strategies for institutional clients in the U.S. and abroad, as well as loan sales, portfolio advisory services, and derivative sales. •Corporate segment consists primarily of corporate support functions including risk management, audit, accounting, finance, executive office, and corporate communications. Shared support services such as human resources, properties, technology, credit risk and bank operations are allocated to the activities of Regional Banking, Specialty Banking and Corporate. Additionally, the Corporate segment includes centralized management of capital and funding to support the business activities of the company including management of wholesale funding, liquidity, and capital management and allocation. The Corporate segment also includes the revenue and expense associated with run-off businesses such as pre-2009 mortgage banking elements, run-off consumer and trust preferred loan portfolios, and other exited businesses. Periodically, FHN adapts its segments to reflect managerial or strategic changes. FHN may also modify its methodology of allocating expenses and equity among segments which could change historical segment results. Business segment revenue, expense, asset, and equity levels reflect those which are specifically identifiable or which are allocated based on an internal allocation method. Because the allocations are based on internally developed assignments and allocations, to an extent they are subjective. Generally, all assignments and allocations have been consistently applied for all periods presented. The following tables present financial information for each reportable business segment for the three and nine months ended September 30, 2022 and 2021:
SEGMENT FINANCIAL INFORMATION
| Three Months Ended September 30, 2022
(Dollars in millions) | Regional Banking |  | Specialty Banking |  | Corporate |  | Consolidated
Net interest income (expense) | $ | 517 |  |  | $ | 138 |  |  | $ | 7 |  |  | $ | 662 |
Provision for credit losses | 43 |  |  | 17 |  |  | — |  |  | 60 |
Noninterest income (a) | 110 |  |  | 64 |  |  | 39 |  |  | 213 |
Noninterest expense (b) | 304 |  |  | 104 |  |  | 61 |  |  | 469 |
Income (loss) before income taxes | 280 |  |  | 81 |  |  | (15) |  |  | 346 |
Income tax expense (benefit) | 65 |  |  | 20 |  |  | (7) |  |  | 78 |
Net income (loss) | $ | 215 |  |  | $ | 61 |  |  | $ | (8) |  |  | $ | 268 |
Average assets | $ | 42,815 |  |  | $ | 19,749 |  |  | $ | 19,986 |  |  | $ | 82,550 |
| Three Months Ended September 30, 2021
(Dollars in millions) | Regional Banking |  | Specialty Banking |  | Corporate |  | Consolidated
Net interest income (expense) | $ | 444 |  |  | $ | 154 |  |  | $ | (106) |  |  | $ | 492 |
Provision for credit losses | (52) |  |  | (33) |  |  | — |  |  | (85) |
Noninterest income | 113 |  |  | 142 |  |  | (8) |  |  | 247 |
Noninterest expense (b) | 292 |  |  | 139 |  |  | 95 |  |  | 526 |
Income (loss) before income taxes | 317 |  |  | 190 |  |  | (209) |  |  | 298 |
Income tax expense (benefit) | 74 |  |  | 46 |  |  | (57) |  |  | 63 |
Net income (loss) | $ | 243 |  |  | $ | 144 |  |  | $ | (152) |  |  | $ | 235 |
Average assets | $ | 40,908 |  |  | $ | 20,505 |  |  | $ | 26,988 |  |  | $ | 88,401 |
(a) 2022 includes a $21 million gain related to the sale of the title insurance business in the Corporate segment. (b) 2022 and 2021 includes $24 million and $46 million, respectively, in merger and integration expenses related to the IBKC merger and Pending TD Merger in the Corporate segment.
| Nine Months Ended September 30, 2022
(Dollars in millions) | Regional Banking |  | Specialty Banking |  | Corporate |  | Consolidated
Net interest income (expense) | $ | 1,410 |  |  | $ | 424 |  |  | $ | (151) |  |  | $ | 1,683 |
Provision for credit losses | 64 |  |  | (4) |  |  | (10) |  |  | 50 |
Noninterest income (a) | 337 |  |  | 265 |  |  | 40 |  |  | 642 |
Noninterest expense (b) | 911 |  |  | 349 |  |  | 190 |  |  | 1,450 |
Income (loss) before income taxes | 772 |  |  | 344 |  |  | (291) |  |  | 825 |
Income tax expense (benefit) | 181 |  |  | 84 |  |  | (82) |  |  | 183 |
Net income (loss) | $ | 591 |  |  | $ | 260 |  |  | $ | (209) |  |  | $ | 642 |
Average assets | $ | 41,779 |  |  | $ | 20,071 |  |  | $ | 23,949 |  |  | $ | 85,799 |
| Nine Months Ended September 30, 2021
(Dollars in millions) | Regional Banking |  | Specialty Banking |  | Corporate |  | Consolidated
Net interest income (expense) | $ | 1,319 |  |  | $ | 466 |  |  | $ | (289) |  |  | $ | 1,496 |
Provision for credit losses | (169) |  |  | (60) |  |  | (16) |  |  | (245) |
Noninterest income | 323 |  |  | 477 |  |  | 29 |  |  | 829 |
Noninterest expense (b) | 837 |  |  | 441 |  |  | 289 |  |  | 1,567 |
Income (loss) before income taxes | 974 |  |  | 562 |  |  | (533) |  |  | 1,003 |
Income tax expense (benefit) | 228 |  |  | 136 |  |  | (142) |  |  | 222 |
Net income (loss) | $ | 746 |  |  | $ | 426 |  |  | $ | (391) |  |  | $ | 781 |
Average assets | $ | 41,931 |  |  | $ | 20,717 |  |  | $ | 24,483 |  |  | $ | 87,131 |
(a) 2022 includes a $21 million gain related to the sale of the title insurance business in the Corporate segment. (b) 2022 and 2021 includes $99 million and $148 million, respectively, in merger and integration expenses related to the IBKC merger and Pending TD Merger in the Corporate segment. The following tables reflect a disaggregation of FHN’s noninterest income by major product line and reportable segment for the three and nine months ended September 30, 2022 and 2021:
NONINTEREST INCOME DETAIL BY SEGMENT
| Three months ended September 30, 2022
(Dollars in millions) | Regional Banking |  | Specialty Banking |  | Corporate |  | Consolidated
Noninterest income: |  |  |  |  |  |  |
Fixed income (a) | $ | — |  |  | $ | 46 |  |  | $ | — |  |  | $ | 46 |
Deposit transactions and cash management | 39 |  |  | 2 |  |  | 2 |  |  | 43 |
Brokerage, management fees and commissions | 23 |  |  | — |  |  | — |  |  | 23 |
Mortgage banking and title income | — |  |  | 9 |  |  | — |  |  | 9 |
Card and digital banking fees | 19 |  |  | — |  |  | 2 |  |  | 21 |
Other service charges and fees | 8 |  |  | 5 |  |  | — |  |  | 13 |
Trust services and investment management | 11 |  |  | — |  |  | — |  |  | 11 |
Securities gains (losses), net (b) | — |  |  | — |  |  | 12 |  |  | 12 |
Deferred compensation income | — |  |  | — |  |  | (3) |  |  | (3) |
Other income (c) | 10 |  |  | 2 |  |  | 26 |  |  | 38 |
Total noninterest income | $ | 110 |  |  | $ | 64 |  |  | $ | 39 |  |  | $ | 213 |
| Three months ended September 30, 2021
(Dollars in millions) | Regional Banking |  | Specialty Banking |  | Corporate |  | Consolidated
Noninterest income: |  |  |  |  |  |  |
Fixed income (a) | $ | — |  |  | $ | 96 |  |  | $ | — |  |  | $ | 96 |
Deposit transactions and cash management | 40 |  |  | 3 |  |  | 1 |  |  | 44 |
Brokerage, management fees and commissions | 24 |  |  | — |  |  | — |  |  | 24 |
Mortgage banking and title income | — |  |  | 34 |  |  | — |  |  | 34 |
Card and digital banking fees | 18 |  |  | 1 |  |  | 2 |  |  | 21 |
Other service charges and fees | 6 |  |  | 5 |  |  | 1 |  |  | 12 |
Trust services and investment management | 13 |  |  | — |  |  | — |  |  | 13 |
Securities gains (losses), net (b) | — |  |  | — |  |  | 1 |  |  | 1 |
Deferred compensation income | — |  |  | — |  |  | 3 |  |  | 3 |
Loss on debt extinguishment | — |  |  | — |  |  | (23) |  |  | (23) |
Other income (c) | 12 |  |  | 3 |  |  | 7 |  |  | 22 |
Total noninterest income | $ | 113 |  |  | $ | 142 |  |  | $ | (8) |  |  | $ | 247 |
(a)2022 and 2021 includes $13 million and $12 million, respectively, of underwriting, portfolio advisory, and other noninterest income in scope of ASC 606, "Revenue From Contracts With Customers." (b)Represents noninterest income excluded from the scope of ASC 606. Amount is presented for informational purposes to reconcile total noninterest income. (c)Includes letter of credit fees and insurance commissions in scope of ASC 606.
| Nine Months Ended September 30, 2022
(Dollars in millions) | Regional Banking |  | Specialty Banking |  | Corporate |  | Consolidated
Noninterest income: |  |  |  |  |  |  |
Fixed income (a) | $ | — |  |  | $ | 170 |  |  | $ | — |  |  | $ | 170 |
Deposit transactions and cash management | 115 |  |  | 7 |  |  | 7 |  |  | 129 |
Brokerage, management fees and commissions | 71 |  |  | — |  |  | — |  |  | 71 |
Mortgage banking and title income | — |  |  | 65 |  |  | — |  |  | 65 |
Card and digital banking fees | 57 |  |  | 2 |  |  | 5 |  |  | 64 |
Other service charges and fees | 24 |  |  | 17 |  |  | — |  |  | 41 |
Trust services and investment management | 36 |  |  | — |  |  | — |  |  | 36 |
Securities gains (losses), net (b) | — |  |  | — |  |  | 18 |  |  | 18 |
Deferred compensation income | — |  |  | — |  |  | (24) |  |  | (24) |
Other income (c) | 34 |  |  | 4 |  |  | 34 |  |  | 72 |
Total noninterest income | $ | 337 |  |  | $ | 265 |  |  | $ | 40 |  |  | $ | 642 |
| Nine Months Ended September 30, 2021
(Dollars in millions) | Regional Banking |  | Specialty Banking |  | Corporate |  | Consolidated
Noninterest income: |  |  |  |  |  |  |
Fixed income (a) | $ | 1 |  |  | $ | 323 |  |  | $ | — |  |  | $ | 324 |
Deposit transactions and cash management | 117 |  |  | 8 |  |  | 5 |  |  | 130 |
Brokerage, management fees and commissions | 65 |  |  | — |  |  | — |  |  | 65 |
Mortgage banking and title income | — |  |  | 124 |  |  | 2 |  |  | 126 |
Card and digital banking fees | 51 |  |  | 2 |  |  | 6 |  |  | 59 |
Other service charges and fees | 18 |  |  | 12 |  |  | 2 |  |  | 32 |
Trust services and investment management | 39 |  |  | — |  |  | — |  |  | 39 |
Securities gains (losses), net (b) | — |  |  | — |  |  | 12 |  |  | 12 |
Deferred compensation income | — |  |  | — |  |  | 12 |  |  | 12 |
Loss on debt extinguishment | — |  |  | — |  |  | (23) |  |  | (23) |
Other income (c) | 32 |  |  | 8 |  |  | 13 |  |  | 53 |
Total noninterest income | $ | 323 |  |  | $ | 477 |  |  | $ | 29 |  |  | $ | 829 |
(a)2022 and 2021 includes $33 million and $35 million for 2022 and 2021, respectively, of underwriting, portfolio advisory, and other noninterest income in scope of ASC 606, "Revenue From Contracts With Customers." (b)Represents noninterest income excluded from the scope of ASC 606. Amount is presented for informational purposes to reconcile total noninterest income. (c)Includes letter of credit fees and insurance commissions in scope of ASC 606.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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