XML 26 R10.htm IDEA: XBRL DOCUMENT
v3.24.2.u1

Investment Securities | 6 Months Ended
--- | ---
Jun. 30, 2024
Marketable Securities [Abstract] |
Investment Securities | Investment Securities The following tables summarize FHN’s investment securities as of June 30, 2024 and December 31, 2023:
INVESTMENT SECURITIES AT JUNE 30, 2024
|  | June 30, 2024
(Dollars in millions) |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Securities available for sale: |  |  |  |  |  |  |  |
Government agency issued MBS |  | $ | 4,852 |  |  | $ | 1 |  |  | $ | (622) |  |  | $ | 4,231 |
Government agency issued CMO |  | 2,374 |  |  | — |  |  | (354) |  |  | 2,020 |
Other U.S. government agencies |  | 1,282 |  |  | — |  |  | (164) |  |  | 1,118 |
States and municipalities |  | 608 |  |  | 1 |  |  | (54) |  |  | 555 |
Total securities available for sale (a) |  | $ | 9,116 |  |  | $ | 2 |  |  | $ | (1,194) |  |  | $ | 7,924 |
Securities held to maturity: |  |  |  |  |  |  |  |
Government agency issued MBS |  | $ | 828 |  |  | $ | — |  |  | $ | (113) |  |  | $ | 715 |
Government agency issued CMO |  | 469 |  |  | — |  |  | (76) |  |  | 393 |
Total securities held to maturity (a) |  | $ | 1,297 |  |  | $ | — |  |  | $ | (189) |  |  | $ | 1,108 |
(a)Includes $6.9 billion of securities available for sale and $1.3 billion of securities held to maturity pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes.
INVESTMENT SECURITIES AT DECEMBER 31, 2023
|  | December 31, 2023
(Dollars in millions) |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Securities available for sale: |  |  |  |  |  |  |  |
Government agency issued MBS |  | $ | 5,061 |  |  | $ | 2 |  |  | $ | (579) |  |  | $ | 4,484 |
Government agency issued CMO |  | 2,487 |  |  | — |  |  | (341) |  |  | 2,146 |
Other U.S. government agencies |  | 1,321 |  |  | 2 |  |  | (151) |  |  | 1,172 |
States and municipalities |  | 627 |  |  | 3 |  |  | (41) |  |  | 589 |
Total securities available for sale (a) |  | $ | 9,496 |  |  | $ | 7 |  |  | $ | (1,112) |  |  | $ | 8,391 |
Securities held to maturity: |  |  |  |  |  |  |  |
Government agency issued MBS |  | $ | 852 |  |  | $ | — |  |  | $ | (96) |  |  | $ | 756 |
Government agency issued CMO |  | 471 |  |  | — |  |  | (66) |  |  | 405 |
Total securities held to maturity (a) |  | $ | 1,323 |  |  | $ | — |  |  | $ | (162) |  |  | $ | 1,161 |
(a)Includes $7.6 billion of securities available for sale and $1.3 billion of securities held to maturity 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 June 30, 2024 is provided below:
DEBT SECURITIES PORTFOLIO MATURITIES |
| Held to Maturity |  | Available for Sale |
(Dollars in millions) | Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value |
Within 1 year | $ | — |  |  | $ | — |  |  | $ | 44 |  |  | $ | 44 |  |
After 1 year through 5 years | — |  |  | — |  |  | 137 |  |  | 127 |  |
After 5 years through 10 years | — |  |  | — |  |  | 369 |  |  | 332 |  |
After 10 years | — |  |  | — |  |  | 1,340 |  |  | 1,170 |  |
Subtotal | — |  |  | — |  |  | 1,890 |  |  | 1,673 |  |
Government agency issued MBS and CMO (a) | 1,297 |  |  | 1,108 |  |  | 7,226 |  |  | 6,251 |  |
Total | $ | 1,297 |  |  | $ | 1,108 |  |  | $ | 9,116 |  |  | $ | 7,924 |  |
(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. There were no sales of AFS securities for the three and six months ended June 30, 2024 and 2023. The following tables provide information on investments within the available-for-sale portfolio that had unrealized losses as of June 30, 2024 and December 31, 2023: AFS INVESTMENT SECURITIES WITH UNREALIZED LOSSES
|  | As of June 30, 2024
|  | 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 |  | $ | 83 |  |  | $ | (1) |  |  | $ | 4,102 |  |  | $ | (621) |  |  | $ | 4,185 |  |  | $ | (622) |
Government agency issued CMO |  | 28 |  |  | — |  |  | 1,992 |  |  | (354) |  |  | 2,020 |  |  | (354) |
Other U.S. government agencies |  | 104 |  |  | (1) |  |  | 971 |  |  | (164) |  |  | 1,075 |  |  | (165) |
States and municipalities |  | 33 |  |  | (1) |  |  | 452 |  |  | (52) |  |  | 485 |  |  | (53) |
Total |  | $ | 248 |  |  | $ | (3) |  |  | $ | 7,517 |  |  | $ | (1,191) |  |  | $ | 7,765 |  |  | $ | (1,194) |
|  | As of December 31, 2023
|  | 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 |  | $ | 140 |  |  | $ | (2) |  |  | $ | 4,231 |  |  | $ | (577) |  |  | $ | 4,371 |  |  | $ | (579) |
Government agency issued CMO |  | 32 |  |  | — |  |  | 2,098 |  |  | (341) |  |  | 2,130 |  |  | (341) |
Other U.S. government agencies |  | 114 |  |  | (2) |  |  | 905 |  |  | (149) |  |  | 1,019 |  |  | (151) |
States and municipalities |  | 14 |  |  | — |  |  | 465 |  |  | (41) |  |  | 479 |  |  | (41) |
Total |  | $ | 300 |  |  | $ | (4) |  |  | $ | 7,699 |  |  | $ | (1,108) |  |  | $ | 7,999 |  |  | $ | (1,112) |
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. Total AIR not included in the fair value or amortized cost basis of AFS debt securities was $31 million and $32 million as of June 30, 2024 and December 31, 2023, 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 periods. 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 periods. There were no transfers to or from AFS or HTM during the three and six month periods ended June 30, 2024 and 2023. For HTM securities, an allowance for credit losses is required to absorb estimated lifetime credit losses. Total AIR not included in the fair value or amortized cost basis of HTM debt securities was $3 million as of both June 30, 2024 and December 31, 2023. FHN has assessed the risk of credit loss and has determined that no allowance for credit losses for HTM securities was necessary as of June 30, 2024 and December 31, 2023. The evaluation of credit risk includes consideration of third-party and government guarantees (both explicit and implicit), senior or subordinated status, credit ratings of the issuer, the effects of interest rate changes since purchase and observable market information such as issuer-specific credit spreads. The carrying amount of equity investments without a readily determinable fair value was $92 million and $89 million at June 30, 2024 and December 31, 2023, respectively. The year-to-date 2024 and 2023 gross amounts of upward and downward valuation adjustments were not significant. Unrealized gains of $2 million and $7 million were recognized in the three and six months ended June 30, 2024, respectively, for equity investments with readily determinable fair values. Unrealized gains of $4 million and $6 million were recognized in the three and six months ended June 30, 2023, 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://www.xbrl.org/2009/role/commonPracticeRef -Topic 940 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/940-320/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph b -Publisher SEC Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/320/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 320 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481800/320-10-50-10 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6B -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6B Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6B -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6B Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 942 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/942-320/tableOfContent + 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