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Business Segment Information | 12 Months Ended
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Dec. 31, 2023
Segment Reporting, Measurement Disclosures [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 commercial and consumer 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 (prior to July 2022) 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 table presents financial information for each reportable business segment for the years ended December 31: Table 8.19.1 SEGMENT FINANCIAL INFORMATION
|  | 2023
(Dollars in millions) |  | Regional Banking |  | Specialty Banking |  | Corporate |  | Consolidated
Net interest income (expense) |  | $ | 2,354 |  |  | $ | 518 |  |  | $ | (332) |  |  | $ | 2,540 |
Provision for credit losses |  | 224 |  |  | 50 |  |  | (14) |  |  | 260 |
Noninterest income (a) |  | 433 |  |  | 209 |  |  | 285 |  |  | 927 |
Noninterest expense (b)(c)(e) |  | 1,301 |  |  | 364 |  |  | 414 |  |  | 2,079 |
Income (loss) before income taxes |  | 1,262 |  |  | 313 |  |  | (447) |  |  | 1,128 |
Income tax expense (benefit) (f) |  | 296 |  |  | 76 |  |  | (160) |  |  | 212 |
Net income (loss) |  | $ | 966 |  |  | $ | 237 |  |  | $ | (287) |  |  | $ | 916 |
Average assets |  | $ | 45,858 |  |  | $ | 20,161 |  |  | $ | 15,664 |  |  | $ | 81,683 |
Depreciation and amortization |  | 60 |  |  | — |  |  | 42 |  |  | 102 |
Expenditures for long-lived assets |  | 29 |  |  | 4 |  |  | 1 |  |  | 34 |
|  | 2022
(Dollars in millions) |  | Regional Banking |  | Specialty Banking |  | Corporate |  | Consolidated
Net interest income (expense) |  | $ | 1,954 |  |  | $ | 557 |  |  | $ | (119) |  |  | $ | 2,392 |
Provision for credit losses |  | 94 |  |  | 14 |  |  | (13) |  |  | 95 |
Noninterest income (a) |  | 443 |  |  | 312 |  |  | 60 |  |  | 815 |
Noninterest expense (b)(e) |  | 1,226 |  |  | 446 |  |  | 281 |  |  | 1,953 |
Income (loss) before income taxes |  | 1,077 |  |  | 409 |  |  | (327) |  |  | 1,159 |
Income tax expense (benefit) |  | 253 |  |  | 99 |  |  | (105) |  |  | 247 |
Net income (loss) |  | $ | 824 |  |  | $ | 310 |  |  | $ | (222) |  |  | $ | 912 |
Average assets |  | $ | 42,297 |  |  | $ | 19,965 |  |  | $ | 21,955 |  |  | $ | 84,217 |
Depreciation and amortization |  | 24 |  |  | 2 |  |  | 59 |  |  | 85 |
Expenditures for long-lived assets |  | 18 |  |  | 12 |  |  | (6) |  |  | 24 |
|  | 2021
(Dollars in millions) |  | Regional Banking |  | Specialty Banking |  | Corporate |  | Consolidated
Net interest income (expense) |  | $ | 1,764 |  |  | $ | 620 |  |  | $ | (390) |  |  | $ | 1,994 |
Provision (benefit) for credit losses |  | (229) |  |  | (64) |  |  | (17) |  |  | (310) |
Noninterest income (a) |  | 438 |  |  | 597 |  |  | 41 |  |  | 1,076 |
Noninterest expense (b)(d)(e) |  | 1,136 |  |  | 573 |  |  | 387 |  |  | 2,096 |
Income (loss) before income taxes |  | 1,295 |  |  | 708 |  |  | (719) |  |  | 1,284 |
Income tax expense (benefit) |  | 303 |  |  | 172 |  |  | (201) |  |  | 274 |
Net income (loss) |  | $ | 992 |  |  | $ | 536 |  |  | $ | (518) |  |  | $ | 1,010 |
Average assets |  | $ | 41,527 |  |  | $ | 20,789 |  |  | $ | 25,293 |  |  | $ | 87,609 |
Depreciation and amortization |  | (57) |  |  | 4 |  |  | 98 |  |  | 45 |
Expenditures for long-lived assets |  | 27 |  |  | 3 |  |  | 7 |  |  | 37 |
(a)2023 includes a $225 million gain on merger termination and a $6 million loss on equities valuation adjustments in the Corporate segment and a $7 million gain on a small FHN Financial asset disposition in the Specialty Banking segment. 2022 includes a $12 million gain on sale of mortgage servicing rights in the Specialty Banking segment and a $22 million gain related to the sale of the title insurance business, a $10 million gain on equity securities and a $6 million gain related to a fintech investment in the Corporate segment. 2021 includes a loss of $26 million related to TRUPS redemption in the Corporate segment. (b)2023 includes $51 million in merger and integration planning expenses related to the TD Transaction in the Corporate Segment. 2022 and 2021 include $136 million and $187 million, respectively, in merger and integration expenses related to the IBKC merger and TD Transaction in the Corporate segment. (c)2023 includes $10 million of restructuring costs, an FDIC special assessment of $68 million, and a $50 million contribution to the First Horizon Foundation in the Corporate segment. (d)2021 includes $37 million in asset impairments related to IBKC merger integration efforts in the Corporate segment. (e)2023, 2022 and 2021 include $15 million, $22 million and $19 million, respectively, in derivative valuation adjustments related to prior Visa Class-B share sales in the Corporate segment. (f)2023 includes $24 million in expense related to the surrender of bank owned life insurance policies and a $59 million benefit from merger-related tax items in the Corporate segment. The following table presents a disaggregation of FHN’s noninterest income by major product line and reportable segment for the years ended December 31, 2023, 2022, and 2021: Table 8.19.2 NONINTEREST INCOME DETAIL BY SEGMENT
|  | December 31, 2023
(Dollars in millions) |  | Regional Banking |  | Specialty Banking |  | Corporate |  | Consolidated
Noninterest income: |  |  |  |  |  |  |  |
Deposit transactions and cash management |  | $ | 161 |  |  | $ | 10 |  |  | $ | 8 |  |  | $ | 179 |
Fixed income (a) |  | — |  |  | 133 |  |  | — |  |  | 133 |
Brokerage, management fees and commissions |  | 90 |  |  | — |  |  | — |  |  | 90 |
Card and digital banking fees |  | 68 |  |  | 2 |  |  | 7 |  |  | 77 |
Other service charges and fees |  | 30 |  |  | 24 |  |  | — |  |  | 54 |
Trust services and investment management |  | 47 |  |  | — |  |  | — |  |  | 47 |
Mortgage banking and title income |  | — |  |  | 23 |  |  | — |  |  | 23 |
Gain on merger termination |  | — |  |  | — |  |  | 225 |  |  | 225 |
Securities gains (losses), net (b) |  | — |  |  | — |  |  | (4) |  |  | (4) |
Other income (c) |  | 37 |  |  | 17 |  |  | 49 |  |  | 103 |
Total noninterest income |  | $ | 433 |  |  | $ | 209 |  |  | $ | 285 |  |  | $ | 927 |
|  | December 31, 2022
(Dollars in millions) |  | Regional Banking |  | Specialty Banking |  | Corporate |  | Consolidated
Noninterest income: |  |  |  |  |  |  |  |
Deposit transactions and cash management |  | $ | 153 |  |  | $ | 9 |  |  | $ | 9 |  |  | $ | 171 |
Fixed income (a) |  | — |  |  | 205 |  |  | — |  |  | 205 |
Brokerage, management fees and commissions |  | 92 |  |  | — |  |  | — |  |  | 92 |
Card and digital banking fees |  | 75 |  |  | 2 |  |  | 7 |  |  | 84 |
Other service charges and fees |  | 32 |  |  | 22 |  |  | — |  |  | 54 |
Trust services and investment management |  | 48 |  |  | — |  |  | — |  |  | 48 |
Mortgage banking and title income |  | — |  |  | 68 |  |  | — |  |  | 68 |
Securities gains (losses), net (b) |  | — |  |  | — |  |  | 18 |  |  | 18 |
Other income (c) |  | 43 |  |  | 6 |  |  | 26 |  |  | 75 |
Total noninterest income |  | $ | 443 |  |  | $ | 312 |  |  | $ | 60 |  |  | $ | 815 |
|  | December 31, 2021
(Dollars in millions) |  | Regional Banking |  | Specialty Banking |  | Corporate |  | Consolidated
Noninterest income: |  |  |  |  |  |  |  |
Deposit transactions and cash management |  | $ | 157 |  |  | $ | 12 |  |  | $ | 6 |  |  | $ | 175 |
Fixed income (a) |  | — |  |  | 406 |  |  | — |  |  | 406 |
Brokerage, management fees and commissions |  | 88 |  |  | — |  |  | — |  |  | 88 |
Card and digital banking fees |  | 67 |  |  | 3 |  |  | 8 |  |  | 78 |
Other service charges and fees |  | 23 |  |  | 17 |  |  | 4 |  |  | 44 |
Trust services and investment management |  | 51 |  |  | — |  |  | — |  |  | 51 |
Mortgage banking and title income |  | — |  |  | 152 |  |  | 2 |  |  | 154 |
Securities gains (losses), net (b) |  | — |  |  | — |  |  | 13 |  |  | 13 |
Other income (c) |  | 52 |  |  | 7 |  |  | 8 |  |  | 67 |
Total noninterest income |  | $ | 438 |  |  | $ | 597 |  |  | $ | 41 |  |  | $ | 1,076 |
(a)2023, 2022 and 2021, include $42 million, $43 million, and $44 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.

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