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Business Segment Information (Tables) | 9 Months Ended
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Sep. 30, 2024
Segment Reporting [Abstract] |
Schedule of Segment Financial Information | The following tables present financial information for each reportable business segment for the three and nine months ended September 30, 2024 and 2023:
SEGMENT FINANCIAL INFORMATION
| Three Months Ended September 30, 2024
(Dollars in millions) | Regional Banking |  | Specialty Banking |  | Corporate |  | Consolidated
Net interest income (expense) | $ | 517 |  |  | $ | 166 |  |  | $ | (56) |  |  | $ | 627 |
Provision for credit losses | 33 |  |  | 3 |  |  | (1) |  |  | 35 |
Noninterest income | 114 |  |  | 67 |  |  | 19 |  |  | 200 |
Noninterest expense (a) | 329 |  |  | 104 |  |  | 78 |  |  | 511 |
Income (loss) before income taxes | 269 |  |  | 126 |  |  | (114) |  |  | 281 |
Income tax expense (benefit) | 63 |  |  | 31 |  |  | (36) |  |  | 58 |
Net income (loss) | $ | 206 |  |  | $ | 95 |  |  | $ | (78) |  |  | $ | 223 |
Average assets | $ | 43,425 |  |  | $ | 24,945 |  |  | $ | 13,996 |  |  | $ | 82,366 |
| Three Months Ended September 30, 2023
(Dollars in millions) | Regional Banking |  | Specialty Banking |  | Corporate |  | Consolidated
Net interest income (expense) | $ | 558 |  |  | $ | 160 |  |  | $ | (113) |  |  | $ | 605 |
Provision for credit losses | 113 |  |  | 2 |  |  | (5) |  |  | 110 |
Noninterest income | 106 |  |  | 49 |  |  | 18 |  |  | 173 |
Noninterest expense (a) | 310 |  |  | 96 |  |  | 68 |  |  | 474 |
Income (loss) before income taxes | 241 |  |  | 111 |  |  | (158) |  |  | 194 |
Income tax expense (benefit) (b) | 56 |  |  | 27 |  |  | (31) |  |  | 52 |
Net income (loss) | $ | 185 |  |  | $ | 84 |  |  | $ | (127) |  |  | $ | 142 |
Average assets | $ | 43,249 |  |  | $ | 24,084 |  |  | $ | 15,887 |  |  | $ | 83,220 |
(a)2024 includes $15 million in derivative valuation adjustments related to prior Visa Class B share sales, $2 million of restructuring costs, and a $2 million FDIC special assessment expense credit in the Corporate segment. 2023 includes $10 million of restructuring costs in the Corporate segment. (b)2023 includes $24 million in expense related to the surrender of bank-owned life insurance policies and an $11 million benefit from merger-related tax items in the Corporate segment.
| Nine Months Ended September 30, 2024 |  |  |  |  |  |  |
(Dollars in millions) | Regional Banking |  | Specialty Banking |  | Corporate |  | Consolidated |  |  |  |  |  |  |
Net interest income (expense) | $ | 1,572 |  |  | $ | 476 |  |  | $ | (167) |  |  | $ | 1,881 |  |  |  |  |  |  |  |
Provision for credit losses | 119 |  |  | 26 |  |  | (5) |  |  | 140 |  |  |  |  |  |  |  |
Noninterest income | 328 |  |  | 203 |  |  | 50 |  |  | 581 |  |  |  |  |  |  |  |
Noninterest expense (a) | 986 |  |  | 311 |  |  | 230 |  |  | 1,527 |  |  |  |  |  |  |  |
Income (loss) before income taxes | 795 |  |  | 342 |  |  | (342) |  |  | 795 |  |  |  |  |  |  |  |
Income tax expense (benefit) | 185 |  |  | 83 |  |  | (97) |  |  | 171 |  |  |  |  |  |  |  |
Net income (loss) | $ | 610 |  |  | $ | 259 |  |  | $ | (245) |  |  | $ | 624 |  |  |  |  |  |  |  |
Average assets | $ | 43,344 |  |  | $ | 24,432 |  |  | $ | 14,003 |  |  | $ | 81,779 |  |  |  |  |  |  |  |
| Nine Months Ended September 30, 2023 |  |  |  |  |  |  |
(Dollars in millions) | Regional Banking |  | Specialty Banking |  | Corporate |  | Consolidated |  |  |  |  |  |  |
Net interest income (expense) | $ | 1,705 |  |  | $ | 467 |  |  | $ | (249) |  |  | $ | 1,923 |  |  |  |  |  |  |  |
Provision for credit losses | 184 |  |  | 35 |  |  | (9) |  |  | 210 |  |  |  |  |  |  |  |
Noninterest income (b) | 316 |  |  | 156 |  |  | 273 |  |  | 745 |  |  |  |  |  |  |  |
Noninterest expense (a) | 937 |  |  | 292 |  |  | 279 |  |  | 1,508 |  |  |  |  |  |  |  |
Income (loss) before income taxes | 900 |  |  | 296 |  |  | (246) |  |  | 950 |  |  |  |  |  |  |  |
Income tax expense (benefit) (c) | 210 |  |  | 72 |  |  | (59) |  |  | 223 |  |  |  |  |  |  |  |
Net income (loss) | $ | 690 |  |  | $ | 224 |  |  | $ | (187) |  |  | $ | 727 |  |  |  |  |  |  |  |
Average assets | $ | 42,285 |  |  | $ | 23,353 |  |  | $ | 15,833 |  |  | $ | 81,471 |  |  |  |  |  |  |  |
(a)2024 includes $15 million in derivative valuation adjustments related to prior Visa Class B share sales, $10 million in restructuring costs and a net FDIC special assessment of $10 million in the Corporate segment. 2023 includes $10 million of restructuring costs, a $50 million contribution to the First Horizon Foundation, $15 million in derivative valuation adjustments related to prior Visa Class B share sales and $51 million in merger and integration expenses related to the TD Transaction in the Corporate segment. (b)2023 includes a $225 million gain on merger termination in the Corporate segment. (c)2023 includes $24 million in expense related to the surrender of bank-owned life insurance policies and an $11 million benefit from merger-related tax items 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, 2024 and 2023:
NONINTEREST INCOME DETAIL BY SEGMENT
| Three Months Ended September 30, 2024
(Dollars in millions) | Regional Banking |  | Specialty Banking |  | Corporate |  | Consolidated
Noninterest income: |  |  |  |  |  |  |
Fixed income (a) | $ | — |  |  | $ | 47 |  |  | $ | — |  |  | $ | 47 |
Deposit transactions and cash management | 40 |  |  | 3 |  |  | 2 |  |  | 45 |
Brokerage, management fees and commissions | 27 |  |  | — |  |  | — |  |  | 27 |
Card and digital banking fees | 17 |  |  | — |  |  | 2 |  |  | 19 |
Other service charges and fees | 6 |  |  | 7 |  |  | — |  |  | 13 |
Trust services and investment management | 12 |  |  | — |  |  | — |  |  | 12 |
Mortgage banking income | — |  |  | 8 |  |  | 1 |  |  | 9 |
Securities gains (losses), net (b) | — |  |  | — |  |  | 1 |  |  | 1 |
Other income (c) | 12 |  |  | 2 |  |  | 13 |  |  | 27 |
Total noninterest income | $ | 114 |  |  | $ | 67 |  |  | $ | 19 |  |  | $ | 200 |
| Three Months Ended September 30, 2023
(Dollars in millions) | Regional Banking |  | Specialty Banking |  | Corporate |  | Consolidated
Noninterest income: |  |  |  |  |  |  |
Fixed income (a) | $ | — |  |  | $ | 28 |  |  | $ | — |  |  | $ | 28 |
Deposit transactions and cash management | 41 |  |  | 3 |  |  | 2 |  |  | 46 |
Brokerage, management fees and commissions | 21 |  |  | — |  |  | — |  |  | 21 |
Card and digital banking fees | 18 |  |  | 1 |  |  | 1 |  |  | 20 |
Other service charges and fees | 6 |  |  | 8 |  |  | — |  |  | 14 |
Trust services and investment management | 12 |  |  | — |  |  | — |  |  | 12 |
Mortgage banking income | — |  |  | 7 |  |  | — |  |  | 7 |
Other income (c) | 8 |  |  | 2 |  |  | 15 |  |  | 25 |
Total noninterest income | $ | 106 |  |  | $ | 49 |  |  | $ | 18 |  |  | $ | 173 |
(a)2024 and 2023 include $11 million and $13 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, 2024
(Dollars in millions) | Regional Banking |  | Specialty Banking |  | Corporate |  | Consolidated
Noninterest income: |  |  |  |  |  |  |
Fixed income (a) | $ | — |  |  | $ | 138 |  |  | $ | — |  |  | $ | 138 |
Deposit transactions and cash management | 119 |  |  | 9 |  |  | 6 |  |  | 134 |
Brokerage, management fees and commissions | 76 |  |  | — |  |  | — |  |  | 76 |
Card and digital banking fees | 51 |  |  | 2 |  |  | 5 |  |  | 58 |
Other service charges and fees | 18 |  |  | 22 |  |  | — |  |  | 40 |
Trust services and investment management | 36 |  |  | — |  |  | — |  |  | 36 |
Mortgage banking income | — |  |  | 27 |  |  | 1 |  |  | 28 |
Securities gains (losses), net (b) | — |  |  | — |  |  | 2 |  |  | 2 |
Other income (c) | 28 |  |  | 5 |  |  | 36 |  |  | 69 |
Total noninterest income | $ | 328 |  |  | $ | 203 |  |  | $ | 50 |  |  | $ | 581 |
| Nine Months Ended September 30, 2023
(Dollars in millions) | Regional Banking |  | Specialty Banking |  | Corporate |  | Consolidated
Noninterest income: |  |  |  |  |  |  |
Fixed income (a) | $ | — |  |  | $ | 98 |  |  | $ | (1) |  |  | $ | 97 |
Deposit transactions and cash management | 118 |  |  | 9 |  |  | 6 |  |  | 133 |
Brokerage, management fees and commissions | 66 |  |  | — |  |  | — |  |  | 66 |
Card and digital banking fees | 54 |  |  | 2 |  |  | 5 |  |  | 61 |
Other service charges and fees | 18 |  |  | 23 |  |  | — |  |  | 41 |
Trust services and investment management | 35 |  |  | — |  |  | — |  |  | 35 |
Mortgage banking income | — |  |  | 18 |  |  | — |  |  | 18 |
Gain on merger termination | — |  |  | — |  |  | 225 |  |  | 225 |
Securities gains (losses), net (b) | — |  |  | — |  |  | 1 |  |  | 1 |
Other income (c) | 25 |  |  | 6 |  |  | 37 |  |  | 68 |
Total noninterest income | $ | 316 |  |  | $ | 156 |  |  | $ | 273 |  |  | $ | 745 |
(a)2024 and 2023 include $31 million and $32 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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- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-25 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-22 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-30 + Details
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