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Loans and Leases | 12 Months Ended
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Dec. 31, 2023
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, 2023 and 2022, excluding accrued interest of $287 million and $226 million, respectively, which is included in other assets in the Consolidated Balance Sheets. Table 8.3.1 LOANS AND LEASES BY PORTFOLIO SEGMENT
|  | December 31,
(Dollars in millions) |  | 2023 |  | 2022
Commercial: |  |  |  |
Commercial and industrial (a) (b) |  | $ | 30,614 |  |  | $ | 29,523 |
Loans to mortgage companies |  | 2,019 |  |  | 2,258 |
Total commercial, financial, and industrial |  | 32,633 |  |  | 31,781 |
Commercial real estate |  | 14,216 |  |  | 13,228 |
Consumer: |  |  |  |
HELOC |  | 2,219 |  |  | 2,028 |
Real estate installment loans |  | 11,431 |  |  | 10,225 |
Total consumer real estate |  | 13,650 |  |  | 12,253 |
Credit card and other (c) |  | 793 |  |  | 840 |
Loans and leases |  | $ | 61,292 |  |  | $ | 58,102 |
Allowance for loan and lease losses |  | (773) |  |  | (685) |
Net loans and leases |  | $ | 60,519 |  |  | $ | 57,417 |
(a)Includes equipment financing leases of $1.2 billion and $1.1 billion as of December 31, 2023 and 2022, respectively. (b)Includes PPP loans fully guaranteed by the SBA of $29 million and $76 million as of December 31, 2023 and 2022, respectively. (c)Includes $180 million and $193 million of commercial credit card balances as of December 31, 2023 and 2022, respectively. Restrictions Loans and leases with carrying values of $46.1 billion and $38.3 billion were pledged as collateral for borrowings at December 31, 2023 and 2022, respectively. 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, 2023, FHN had loans to mortgage companies of $2.0 billion and loans to finance and insurance companies of $4.1 billion. As a result, 18% of the C&I portfolio 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. 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 table provides the amortized cost basis of the commercial loan portfolio by year of origination and credit quality indicator as of December 31, 2023 and 2022: Table 8.3.2 C&I PORTFOLIO
|  | December 31, 2023
(Dollars in millions) |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | Prior to 2019 |  | LMC (a) |  | Revolving Loans |  | Revolving Loans Converted to Term Loans |  | Total
Credit Quality Indicator: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (PD grades 1 through 12) (b) |  | $ | 4,009 |  |  | $ | 5,638 |  |  | $ | 3,507 |  |  | $ | 1,636 |  |  | $ | 1,666 |  |  | $ | 3,449 |  |  | $ | 2,014 |  |  | $ | 9,087 |  |  | $ | 327 |  |  | $ | 31,333 |
Special Mention (PD grade 13) |  | 75 |  |  | 60 |  |  | 64 |  |  | 56 |  |  | 101 |  |  | 57 |  |  | — |  |  | 186 |  |  | — |  |  | 599 |
Substandard, Doubtful, or Loss (PD grades 14,15, and 16) |  | 41 |  |  | 135 |  |  | 94 |  |  | 51 |  |  | 39 |  |  | 100 |  |  | 5 |  |  | 187 |  |  | 49 |  |  | 701 |
Total C&I loans |  | $ | 4,125 |  |  | $ | 5,833 |  |  | $ | 3,665 |  |  | $ | 1,743 |  |  | $ | 1,806 |  |  | $ | 3,606 |  |  | $ | 2,019 |  |  | $ | 9,460 |  |  | $ | 376 |  |  | $ | 32,633 |
|  | December 31, 2022
(Dollars in millions) |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | Prior to 2018 |  | LMC (a) |  | Revolving Loans |  | Revolving Loans Converted to Term Loans |  | Total
Credit Quality Indicator: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (PD grades 1 through 12) (b) |  | $ | 7,456 |  |  | $ | 3,634 |  |  | $ | 1,803 |  |  | $ | 1,912 |  |  | $ | 1,112 |  |  | $ | 3,170 |  |  | $ | 2,258 |  |  | $ | 9,166 |  |  | $ | 371 |  |  | $ | 30,882 |
Special Mention (PD grade 13) |  | 17 |  |  | 56 |  |  | 17 |  |  | 125 |  |  | 8 |  |  | 80 |  |  | — |  |  | 126 |  |  | — |  |  | 429 |
Substandard, Doubtful, or Loss (PD grades 14,15, and 16) |  | 36 |  |  | 48 |  |  | 41 |  |  | 34 |  |  | 25 |  |  | 55 |  |  | — |  |  | 134 |  |  | 97 |  |  | 470 |
Total C&I loans |  | $ | 7,509 |  |  | $ | 3,738 |  |  | $ | 1,861 |  |  | $ | 2,071 |  |  | $ | 1,145 |  |  | $ | 3,305 |  |  | $ | 2,258 |  |  | $ | 9,426 |  |  | $ | 468 |  |  | $ | 31,781 |
(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) Includes PPP loans. Table 8.3.3 CRE PORTFOLIO
|  | December 31, 2023
(Dollars in millions) |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | Prior to 2019 |  | Revolving Loans |  | Revolving Loans Converted to Term Loans |  | Total
Credit Quality Indicator: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (PD grades 1 through 12) |  | $ | 853 |  |  | $ | 3,473 |  |  | $ | 3,518 |  |  | $ | 1,162 |  |  | $ | 1,216 |  |  | $ | 2,853 |  |  | $ | 393 |  |  | $ | 18 |  |  | $ | 13,486 |
Special Mention (PD grade 13) |  | 5 |  |  | 1 |  |  | 129 |  |  | 86 |  |  | 175 |  |  | 82 |  |  | — |  |  | — |  |  | 478 |
Substandard, Doubtful, or Loss (PD grades 14,15, and 16) |  | — |  |  | 2 |  |  | 5 |  |  | 11 |  |  | 175 |  |  | 59 |  |  | — |  |  | — |  |  | 252 |
Total CRE loans |  | $ | 858 |  |  | $ | 3,476 |  |  | $ | 3,652 |  |  | $ | 1,259 |  |  | $ | 1,566 |  |  | $ | 2,994 |  |  | $ | 393 |  |  | $ | 18 |  |  | $ | 14,216 |
|  | December 31, 2022
(Dollars in millions) |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | Prior to 2018 |  | Revolving Loans |  | Revolving Loans Converted to Term Loans |  | Total
Credit Quality Indicator: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (PD grades 1 through 12) |  | $ | 2,637 |  |  | $ | 3,324 |  |  | $ | 1,488 |  |  | $ | 1,855 |  |  | $ | 808 |  |  | $ | 2,565 |  |  | $ | 274 |  |  | $ | 20 |  |  | $ | 12,971 |
Special Mention (PD grade 13) |  | — |  |  | 3 |  |  | 3 |  |  | 37 |  |  | 68 |  |  | 5 |  |  | 1 |  |  | — |  |  | 117 |
Substandard, Doubtful, or Loss (PD grades 14,15, and 16) |  | 1 |  |  | 4 |  |  | 12 |  |  | 50 |  |  | 31 |  |  | 31 |  |  | 11 |  |  | — |  |  | 140 |
Total CRE loans |  | $ | 2,638 |  |  | $ | 3,331 |  |  | $ | 1,503 |  |  | $ | 1,942 |  |  | $ | 907 |  |  | $ | 2,601 |  |  | $ | 286 |  |  | $ | 20 |  |  | $ | 13,228 |
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 table reflects the amortized cost basis by year of origination and refreshed FICO scores for consumer real estate loans as of December 31, 2023 and 2022. 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 a revolving loan converted to a term loan. 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 8.3.4 CONSUMER REAL ESTATE PORTFOLIO
|  | December 31, 2023
(Dollars in millions) |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | Prior to 2019 |  | Revolving Loans |  | Revolving Loans Converted to Term Loans |  | Total
FICO score 740 or greater |  | $ | 1,572 |  |  | $ | 2,099 |  |  | $ | 1,720 |  |  | $ | 730 |  |  | $ | 465 |  |  | $ | 1,332 |  |  | $ | 1,522 |  |  | $ | 50 |  |  | $ | 9,490 |
FICO score 720-739 |  | 205 |  |  | 286 |  |  | 227 |  |  | 107 |  |  | 88 |  |  | 230 |  |  | 192 |  |  | 15 |  |  | 1,350 |
FICO score 700-719 |  | 154 |  |  | 232 |  |  | 193 |  |  | 81 |  |  | 52 |  |  | 224 |  |  | 159 |  |  | 17 |  |  | 1,112 |
FICO score 660-699 |  | 170 |  |  | 198 |  |  | 113 |  |  | 83 |  |  | 53 |  |  | 290 |  |  | 168 |  |  | 18 |  |  | 1,093 |
FICO score 620-659 |  | 11 |  |  | 20 |  |  | 23 |  |  | 22 |  |  | 36 |  |  | 106 |  |  | 36 |  |  | 7 |  |  | 261 |
FICO score less than 620 |  | 18 |  |  | 19 |  |  | 15 |  |  | 20 |  |  | 12 |  |  | 225 |  |  | 24 |  |  | 11 |  |  | 344 |
Total |  | $ | 2,130 |  |  | $ | 2,854 |  |  | $ | 2,291 |  |  | $ | 1,043 |  |  | $ | 706 |  |  | $ | 2,407 |  |  | $ | 2,101 |  |  | $ | 118 |  |  | $ | 13,650 |
|  | December 31, 2022
(Dollars in millions) |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | Prior to 2018 |  | Revolving Loans |  | Revolving Loans Converted to Term Loans |  | Total
FICO score 740 or greater |  | $ | 2,154 |  |  | $ | 1,847 |  |  | $ | 819 |  |  | $ | 523 |  |  | $ | 278 |  |  | $ | 1,294 |  |  | $ | 1,297 |  |  | $ | 63 |  |  | $ | 8,275 |
FICO score 720-739 |  | 292 |  |  | 246 |  |  | 116 |  |  | 98 |  |  | 34 |  |  | 238 |  |  | 183 |  |  | 18 |  |  | 1,225 |
FICO score 700-719 |  | 242 |  |  | 206 |  |  | 93 |  |  | 55 |  |  | 35 |  |  | 226 |  |  | 142 |  |  | 22 |  |  | 1,021 |
FICO score 660-699 |  | 214 |  |  | 137 |  |  | 90 |  |  | 55 |  |  | 62 |  |  | 278 |  |  | 192 |  |  | 23 |  |  | 1,051 |
FICO score 620-659 |  | 21 |  |  | 24 |  |  | 25 |  |  | 41 |  |  | 20 |  |  | 105 |  |  | 47 |  |  | 9 |  |  | 292 |
FICO score less than 620 |  | 15 |  |  | 19 |  |  | 32 |  |  | 12 |  |  | 23 |  |  | 256 |  |  | 16 |  |  | 16 |  |  | 389 |
Total |  | $ | 2,938 |  |  | $ | 2,479 |  |  | $ | 1,175 |  |  | $ | 784 |  |  | $ | 452 |  |  | $ | 2,397 |  |  | $ | 1,877 |  |  | $ | 151 |  |  | $ | 12,253 |
The following table reflects the amortized cost basis by year of origination and refreshed FICO scores for credit card and other loans as of December 31, 2023 and 2022. Table 8.3.5 CREDIT CARD & OTHER PORTFOLIO
|  | December 31, 2023
(Dollars in millions) |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | Prior to 2019 |  | Revolving Loans |  | Revolving Loans Converted to Term Loans |  | Total
FICO score 740 or greater |  | $ | 52 |  |  | $ | 26 |  |  | $ | 10 |  |  | $ | 5 |  |  | $ | 3 |  |  | $ | 27 |  |  | $ | 207 |  |  | $ | 5 |  |  | $ | 335 |
FICO score 720-739 |  | 5 |  |  | 3 |  |  | 1 |  |  | 1 |  |  | 1 |  |  | 5 |  |  | 24 |  |  | 1 |  |  | 41 |
FICO score 700-719 |  | 5 |  |  | 4 |  |  | 1 |  |  | 1 |  |  | 1 |  |  | 4 |  |  | 25 |  |  | 1 |  |  | 42 |
FICO score 660-699 |  | 4 |  |  | 3 |  |  | 1 |  |  | 1 |  |  | 1 |  |  | 8 |  |  | 23 |  |  | — |  |  | 41 |
FICO score 620-659 |  | 2 |  |  | 1 |  |  | 1 |  |  | — |  |  | — |  |  | 3 |  |  | 7 |  |  | — |  |  | 14 |
FICO score less than 620 |  | 12 |  |  | 9 |  |  | 6 |  |  | 8 |  |  | 13 |  |  | 103 |  |  | 168 |  |  | 1 |  |  | 320 |
Total |  | $ | 80 |  |  | $ | 46 |  |  | $ | 20 |  |  | $ | 16 |  |  | $ | 19 |  |  | $ | 150 |  |  | $ | 454 |  |  | $ | 8 |  |  | $ | 793 |
|  | December 31, 2022
(Dollars in millions) |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | Prior to 2018 |  | Revolving Loans |  | Revolving Loans Converted to Term Loans |  | Total
FICO score 740 or greater |  | $ | 36 |  |  | $ | 14 |  |  | $ | 10 |  |  | $ | 10 |  |  | $ | 4 |  |  | $ | 25 |  |  | $ | 291 |  |  | $ | 6 |  |  | $ | 396 |
FICO score 720-739 |  | 3 |  |  | 2 |  |  | 2 |  |  | 1 |  |  | — |  |  | 4 |  |  | 30 |  |  | 1 |  |  | 43 |
FICO score 700-719 |  | 3 |  |  | 3 |  |  | 1 |  |  | 1 |  |  | — |  |  | 4 |  |  | 33 |  |  | 1 |  |  | 46 |
FICO score 660-699 |  | 3 |  |  | 2 |  |  | 1 |  |  | 1 |  |  | 2 |  |  | 7 |  |  | 30 |  |  | 1 |  |  | 47 |
FICO score 620-659 |  | 1 |  |  | 3 |  |  | 1 |  |  | — |  |  | — |  |  | 3 |  |  | 18 |  |  | — |  |  | 26 |
FICO score less than 620 |  | 7 |  |  | 6 |  |  | 6 |  |  | 10 |  |  | 7 |  |  | 71 |  |  | 174 |  |  | 1 |  |  | 282 |
Total |  | $ | 53 |  |  | $ | 30 |  |  | $ | 21 |  |  | $ | 23 |  |  | $ | 13 |  |  | $ | 114 |  |  | $ | 576 |  |  | $ | 10 |  |  | $ | 840 |
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. The following table reflects accruing and non-accruing loans and leases by class on December 31, 2023 and 2022: Table 8.3.6 ACCRUING & NON-ACCRUING LOANS & LEASES
|  | December 31, 2023
|  | 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 and Leases
Commercial, financial, and industrial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
C&I (a) |  | $ | 30,403 |  |  | $ | 31 |  |  | $ | 1 |  |  | $ | 30,435 |  |  | $ | 108 |  |  | $ | 18 |  |  | $ | 53 |  |  | $ | 179 |  |  | $ | 30,614 |
Loans to mortgage companies |  | 2,013 |  |  | 1 |  |  | — |  |  | 2,014 |  |  | 5 |  |  | — |  |  | — |  |  | 5 |  |  | 2,019 |
Total commercial, financial, and industrial |  | 32,416 |  |  | 32 |  |  | 1 |  |  | 32,449 |  |  | 113 |  |  | 18 |  |  | 53 |  |  | 184 |  |  | 32,633 |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
CRE (b) |  | 14,072 |  |  | 8 |  |  | — |  |  | 14,080 |  |  | 41 |  |  | — |  |  | 95 |  |  | 136 |  |  | 14,216 |
Consumer real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
HELOC (c) |  | 2,158 |  |  | 11 |  |  | 4 |  |  | 2,173 |  |  | 30 |  |  | 6 |  |  | 10 |  |  | 46 |  |  | 2,219 |
Real estate installment loans (d) |  | 11,295 |  |  | 29 |  |  | 13 |  |  | 11,337 |  |  | 43 |  |  | 6 |  |  | 45 |  |  | 94 |  |  | 11,431 |
Total consumer real estate |  | 13,453 |  |  | 40 |  |  | 17 |  |  | 13,510 |  |  | 73 |  |  | 12 |  |  | 55 |  |  | 140 |  |  | 13,650 |
Credit card and other: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit card |  | 271 |  |  | 3 |  |  | 3 |  |  | 277 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 277 |
Other |  | 512 |  |  | 2 |  |  | — |  |  | 514 |  |  | 1 |  |  | — |  |  | 1 |  |  | 2 |  |  | 516 |
Total credit card and other |  | 783 |  |  | 5 |  |  | 3 |  |  | 791 |  |  | 1 |  |  | — |  |  | 1 |  |  | 2 |  |  | 793 |
Total loans and leases |  | $ | 60,724 |  |  | $ | 85 |  |  | $ | 21 |  |  | $ | 60,830 |  |  | $ | 228 |  |  | $ | 30 |  |  | $ | 204 |  |  | $ | 462 |  |  | $ | 61,292 |
|  | December 31, 2022
|  | 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 and Leases
Commercial, financial, and industrial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
C&I (a) |  | $ | 29,309 |  |  | $ | 50 |  |  | $ | 11 |  |  | $ | 29,370 |  |  | $ | 64 |  |  | $ | 10 |  |  | $ | 79 |  |  | $ | 153 |  |  | $ | 29,523 |
Loans to mortgage companies |  | 2,258 |  |  | — |  |  | — |  |  | 2,258 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2,258 |
Total commercial, financial, and industrial |  | 31,567 |  |  | 50 |  |  | 11 |  |  | 31,628 |  |  | 64 |  |  | 10 |  |  | 79 |  |  | 153 |  |  | 31,781 |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
CRE (b) |  | 13,208 |  |  | 11 |  |  | — |  |  | 13,219 |  |  | 7 |  |  | — |  |  | 2 |  |  | 9 |  |  | 13,228 |
Consumer real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
HELOC (c) |  | 1,967 |  |  | 12 |  |  | 5 |  |  | 1,984 |  |  | 32 |  |  | 4 |  |  | 8 |  |  | 44 |  |  | 2,028 |
Real estate installment loans (d) |  | 10,079 |  |  | 25 |  |  | 13 |  |  | 10,117 |  |  | 56 |  |  | 5 |  |  | 47 |  |  | 108 |  |  | 10,225 |
Total consumer real estate |  | 12,046 |  |  | 37 |  |  | 18 |  |  | 12,101 |  |  | 88 |  |  | 9 |  |  | 55 |  |  | 152 |  |  | 12,253 |
Credit card and other: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit card |  | 287 |  |  | 5 |  |  | 4 |  |  | 296 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 296 |
Other |  | 540 |  |  | 2 |  |  | — |  |  | 542 |  |  | 1 |  |  | — |  |  | 1 |  |  | 2 |  |  | 544 |
Total credit card and other |  | 827 |  |  | 7 |  |  | 4 |  |  | 838 |  |  | 1 |  |  | — |  |  | 1 |  |  | 2 |  |  | 840 |
Total loans and leases |  | $ | 57,648 |  |  | $ | 105 |  |  | $ | 33 |  |  | $ | 57,786 |  |  | $ | 160 |  |  | $ | 19 |  |  | $ | 137 |  |  | $ | 316 |  |  | $ | 58,102 |
(a) $178 million and $147 million of C&I loans are nonaccrual loans that have been specifically reviewed for impairment with no related allowance in 2023 and 2022, respectively. (b) $129 million and $5 million of CRE loans are nonaccrual loans that have been specifically reviewed for impairment with no related allowance for 2023 and 2022, respectively. (c) $4 million and $5 million of HELOC loans are nonaccrual loans that have been specifically reviewed for impairment with no related allowance for 2023 and 2022, respectively. (d) $10 million and $7 million of real estate installment loans are nonaccrual loans that have been specifically reviewed for impairment with no related allowance for 2023 and 2022, respectively. 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, 2023 and 2022, FHN had commercial loans with amortized cost of approximately $250 million and $124 million, respectively, that were based on the value of underlying collateral. Collateral-dependent C&I and CRE loans totaled $117 million and $133 million, respectively, at December 31, 2023. The collateral for these loans generally consists of business assets including land, buildings, equipment and financial assets. During the years ended December 31, 2023 and 2022, FHN recognized total charge-offs of approximately $144 million and $10 million, respectively, on these loans related to reductions in estimated collateral values. Consumer HELOC and real estate installment loans with amortized cost based on the value of underlying real estate collateral were approximately $6 million and $27 million, respectively, as of December 31, 2023, and $7 million and $26 million, respectively, as of December 31, 2022. Charge-offs were $1 million for collateral-dependent consumer loans during the year ended December 31, 2023, and $2 million during the year ended December 31, 2022. Loan Modifications to Troubled Borrowers 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. Modifications could include extension of the maturity date, reductions of the interest rate, reduction or forgiveness of accrued interest, or principal forgiveness. Combinations of these modifications may also be made for individual loans. Extensions and modifications to loans are made in accordance with internal policies and guidelines which conform to regulatory guidance. Principal reductions may be made in limited circumstances, typically for specific commercial loan workouts, and in the event of borrower bankruptcy. Each occurrence is unique to the borrower and is evaluated separately. Troubled loans are considered those in which the borrower is experiencing financial difficulty. The assessment of whether a borrower is experiencing financial difficulty can be subjective in nature and management’s judgment may be required in making this determination. 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 absent a modification. Many aspects of a borrower’s financial situation are assessed when determining whether they are experiencing financial difficulty. Troubled commercial loans are typically modified through forbearance agreements which could include reduced interest rates, reduced payments, term extension, or entering into short sale agreements. Principal reductions may occur in specific circumstances. Modifications for troubled consumer loans are generally structured using parameters of U.S. government-sponsored programs. For HELOC and real estate installment loans, troubled loans are typically modified by an interest rate reduction and a possible maturity date extension to reach an affordable housing debt-to-income ratio. Despite the absence of a loan modification by FHN, the discharge of personal liability through bankruptcy proceedings is considered a court-imposed modification. For the credit card portfolio, troubled loan modifications are typically enacted 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 six months to one year. In the credit card workout program, borrowers are granted a rate reduction to 0% and a term extension for up to five years. Modifications to Borrowers Experiencing Financial Difficulty For periods subsequent to December 31, 2022, information regarding loans modified when a borrower is experiencing financial difficulty are included in the tables below. The following tables present the amortized cost basis at the end of the reporting period of loans modified to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of modification made, as well as the financial effect of the modifications made as of December 31, 2023: Table 8.3.7 LOAN MODIFICATIONS TO BORROWERS EXPERIENCING FINANCIAL DIFFICULTY
|  | December 31, 2023
|  | Interest Rate Reduction
(Dollars in millions) |  | Balance |  | % of Total Class |  | Financial Effect
Consumer real estate |  | $ | 2 |  |  | — | % |  | Reduced weighted-average contractual interest rate from 8.60% to 5.00%
Credit card and other (a) |  | — |  |  | — |  |  | Reduced weighted-average contractual interest rate from 11.20% to 0.00%
Total |  | $ | 2 |  |  | — | % |  |
|  | December 31, 2023
|  | Term Extension
(Dollars in millions) |  | Balance |  | % of Total Class |  | Financial Effect |
C&I |  | $ | 90 |  |  | 0.3 | % |  | Added a weighted-average 1 year to the life of loans, which reduced monthly payment amounts for the borrowers |
CRE |  | 40 |  |  | 0.3 |  |  | Added a weighted-average 0.8 year to the life of loans, which reduced monthly payment amounts for the borrowers |
Consumer real estate |  | 2 |  |  | — |  |  | Added a weighted-average 12 years to the life of loans, which reduced monthly payment amounts for the borrowers |
Total |  | $ | 132 |  |  | 0.2 | % |  |  |
|  | December 31, 2023
|  | Principal Forgiveness
(Dollars in millions) |  | Balance |  | % of Total Class |  | Financial Effect |
Consumer real estate |  | $ | 2 |  |  | — | % |  | $1.3 million of the principal of consumer loans was legally discharged in bankruptcy during the period and the borrowers have not re-affirmed the debt as of period end |
Total |  | $ | 2 |  |  | — | % |  |  |
|  | December 31, 2023
|  | Payment Deferrals
(Dollars in millions) |  | Balance |  | % of Total Class |  | Financial Effect |
Consumer real estate |  | $ | 3 |  |  | — | % |  | Payment deferral for 11 months, with a balloon payment at the end of the term |
Total |  | $ | 3 |  |  | — | % |  |  |
|  | December 31, 2023
|  | Combination - Term Extension and Interest Rate Reduction
(Dollars in millions) |  | Balance |  | % of Total Class |  | Financial Effect |
C&I (a) |  | $ | — |  |  | — | % |  | Added a weighted-average 1.2 years to the life of loans and reduced weighted-average contractual interest rate from 13.00% to 11.50% |
Consumer real estate |  | 6 |  |  | — |  |  | Added a weighted-average 14.3 years to the life of loans and reduced weighted-average contractual interest rate from 5.00% to 4.70% |
Total |  | $ | 6 |  |  | — | % |  |  |
|  | December 31, 2023
|  | Combination - Term Extension, Interest Rate Reduction, and Interest Forgiveness
(Dollars in millions) |  | Balance |  | % of Total Class |  | Financial Effect |
C&I |  | $ | 2 |  |  | — | % |  | Added a weighted-average 3.7 years to the life of loans, reduced weighted-average contractual interest rate from 11.25% to 7.50% and provided less than $1 million in interest forgiveness |
Total |  | $ | 2 |  |  | — | % |  |  |
|  | December 31, 2023
|  | Combination - Term Extension, Interest Rate Reduction, and Interest Deferrals
(Dollars in millions) |  | Balance |  | % of Total Class |  | Financial Effect |
CRE |  | $ | 15 |  |  | 0.1 | % |  | Added a weighted-average 1 year to the life of loans, reduced weighted-average contractual interest rate from 8.65% to 8.00% and provided less than $1 million in deferred interest |
Total |  | $ | 15 |  |  | — | % |  |  |
(a) Balance less than $1 million. The balance of loan modifications to borrowers experiencing financial difficulty that had a payment default during the period totaled $28 million as of December 31, 2023. FHN closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table depicts the performance of loans that have been modified in the last 12 months: Table 8.3.8
PERFORMANCE OF LOANS THAT HAVE BEEN MODIFIED IN THE LAST 12 MONTHS
|  | December 31, 2023
(Dollars in millions) |  | Current |  | 30-89 Days Past Due |  | 90+ Days Past Due |  |  | Non-Accruing
C&I |  | $ | 70 |  |  | $ | — |  |  | $ | — |  |  |  | $ | 22 |
CRE |  | 8 |  |  | — |  |  | — |  |  |  | 47 |
Consumer real estate |  | 4 |  |  | — |  |  | — |  |  |  | 11 |
Credit card and other |  | — |  |  | — |  |  | — |  |  |  | — |
Total |  | $ | 82 |  |  | $ | — |  |  | $ | — |  |  |  | $ | 80 |
Troubled Debt Restructurings Prior to January 1, 2023, a modification was classified as a TDR if the borrower was experiencing financial difficulty and it was determined that FHN granted a concession to the borrower. Concessions represented modifications that FHN would not otherwise consider if a borrower had not been experiencing financial difficulty. Evaluation of whether a concession was granted, was subjective in nature and management’s judgment was required in making the determination of whether a modification was classified as a TDR. All non-reaffirmed residential real estate loans discharged in Chapter 7 bankruptcy were considered concessions and classified as nonaccruing TDRs. On December 31, 2022, FHN had $180 million of portfolio loans classified as TDRs. Additionally, $30 million of loans held for sale as of December 31, 2022 were classified as TDRs. The following table presents the end of period balance for loans modified in a TDR during the year ended December 31, 2022: Table 8.3.9 LOANS MODIFIED IN A TDR
|  |  | Year Ended December 31, 2022
(Dollars in millions) |  |  | Number |  | Pre-Modification Outstanding Recorded Investment |  | Post-Modification Outstanding Recorded Investment
C&I |  |  | 6 |  |  | $ | 30 |  |  | $ | 24 |
CRE |  |  | 1 |  |  | 1 |  |  | 1 |
HELOC |  |  | 98 |  |  | 7 |  |  | 7 |
Real estate installment loans |  |  | 181 |  |  | 41 |  |  | 41 |
Credit card and other |  |  | 81 |  |  | 12 |  |  | 12 |
Total TDRs |  |  | 367 |  |  | $ | 91 |  |  | $ | 85 |
The following table presents TDRs which re-defaulted during 2022, 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 8.3.10 LOANS MODIFIED IN A TDR THAT RE-DEFAULTED
|  |  | Year Ended December 31, 2022
(Dollars in millions) |  |  | Number |  | Recorded Investment
C&I |  |  | 5 |  |  | $ | — |
CRE |  |  | — |  |  | — |
HELOC |  |  | 22 |  |  | 1 |
Real estate installment loans |  |  | 54 |  |  | 15 |
Credit card and other |  |  | 17 |  |  | — |
Total TDRs |  |  | 98 |  |  | $ | 16 |

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