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Loans and Leases | 3 Months Ended
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Mar. 31, 2025
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 March 31, 2025 and December 31, 2024, excluding accrued interest of $258 million and $271 million, respectively, which is included in other assets in the Consolidated Balance Sheets.
LOANS AND LEASES BY PORTFOLIO SEGMENT |  |
(Dollars in millions) |  | March 31, 2025 |  | December 31, 2024 |  |
Commercial: |  |  |  |  |  |
Commercial and industrial (a) |  | $ | 29,985 |  |  | $ | 29,957 |  |  |
Loans to mortgage companies |  | 3,369 |  |  | 3,471 |  |  |
Total commercial, financial, and industrial |  | 33,354 |  |  | 33,428 |  |  |
Commercial real estate |  | 14,139 |  |  | 14,421 |  |  |
Consumer: |  |  |  |  |  |
HELOC |  | 2,095 |  |  | 2,092 |  |  |
Real estate installment loans |  | 11,994 |  |  | 11,955 |  |  |
Total consumer real estate |  | 14,089 |  |  | 14,047 |  |  |
Credit card and other (b) |  | 633 |  |  | 669 |  |  |
Loans and leases |  | $ | 62,215 |  |  | $ | 62,565 |  |  |
Allowance for loan and lease losses |  | (822) |  |  | (815) |  |  |
Net loans and leases |  | $ | 61,393 |  |  | $ | 61,750 |  |  |
(a)Includes equipment financing leases of $1.5 billion and $1.4 billion for March 31, 2025 and December 31, 2024, respectively. (b)Includes $168 million and $174 million of commercial credit card balances as of March 31, 2025 and December 31, 2024, respectively. Restrictions Loans and leases with carrying values of $45.7 billion and $45.8 billion were pledged as collateral for borrowings at March 31, 2025 and December 31, 2024, respectively. Concentrations of Credit Risk Most of 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 March 31, 2025, FHN had loans to mortgage companies of $3.4 billion and loans to finance and insurance companies of $3.5 billion. As a result, 20% 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 tables provide the amortized cost basis of the commercial loan portfolio by year of origination and credit quality indicator as of March 31, 2025 and December 31, 2024.
C&I PORTFOLIO
|  | March 31, 2025
(Dollars in millions) |  | 2025 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | Prior to 2021 |  | LMC (a) |  | Revolving Loans |  | Revolving Loans Converted to Term Loans |  | Total
Credit Quality Indicator: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (PD grades 1 through 12) |  | $ | 756 |  |  | $ | 5,804 |  |  | $ | 2,525 |  |  | $ | 3,344 |  |  | $ | 2,127 |  |  | $ | 4,674 |  |  | $ | 3,369 |  |  | $ | 8,744 |  |  | $ | 211 |  |  | $ | 31,554 |
Special Mention (PD grade 13) |  | — |  |  | 72 |  |  | 25 |  |  | 82 |  |  | 55 |  |  | 69 |  |  | — |  |  | 193 |  |  | 6 |  |  | 502 |
Substandard, Doubtful, or Loss (PD grades 14,15, and 16) |  | 1 |  |  | 109 |  |  | 160 |  |  | 230 |  |  | 161 |  |  | 241 |  |  | — |  |  | 362 |  |  | 34 |  |  | 1,298 |
Total C&I loans |  | $ | 757 |  |  | $ | 5,985 |  |  | $ | 2,710 |  |  | $ | 3,656 |  |  | $ | 2,343 |  |  | $ | 4,984 |  |  | $ | 3,369 |  |  | $ | 9,299 |  |  | $ | 251 |  |  | $ | 33,354 |
|  | December 31, 2024
(Dollars in millions) |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior to 2020 |  | LMC (a) |  | Revolving Loans |  | Revolving Loans Converted to Term Loans |  | Total
Credit Quality Indicator: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (PD grades 1 through 12) |  | $ | 5,590 |  |  | $ | 2,607 |  |  | $ | 3,649 |  |  | $ | 2,336 |  |  | $ | 1,055 |  |  | $ | 3,853 |  |  | $ | 3,471 |  |  | $ | 8,784 |  |  | $ | 248 |  |  | $ | 31,593 |
Special Mention (PD grade 13) |  | 106 |  |  | 27 |  |  | 78 |  |  | 47 |  |  | 33 |  |  | 57 |  |  | — |  |  | 279 |  |  | 2 |  |  | 629 |
Substandard, Doubtful, or Loss (PD grades 14,15, and 16) |  | 84 |  |  | 184 |  |  | 113 |  |  | 179 |  |  | 33 |  |  | 169 |  |  | — |  |  | 383 |  |  | 61 |  |  | 1,206 |
Total C&I loans |  | $ | 5,780 |  |  | $ | 2,818 |  |  | $ | 3,840 |  |  | $ | 2,562 |  |  | $ | 1,121 |  |  | $ | 4,079 |  |  | $ | 3,471 |  |  | $ | 9,446 |  |  | $ | 311 |  |  | $ | 33,428 |
(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.
CRE PORTFOLIO
|  | March 31, 2025
(Dollars in millions) |  | 2025 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | Prior to 2021 |  | Revolving Loans |  | Revolving Loans Converted to Term Loans |  | Total
Credit Quality Indicator: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (PD grades 1 through 12) |  | $ | 160 |  |  | $ | 753 |  |  | $ | 1,391 |  |  | $ | 3,179 |  |  | $ | 2,457 |  |  | $ | 3,990 |  |  | $ | 304 |  |  | $ | 57 |  |  | $ | 12,291 |
Special Mention (PD grade 13) |  | — |  |  | — |  |  | 42 |  |  | 172 |  |  | 267 |  |  | 121 |  |  | 43 |  |  | — |  |  | 645 |
Substandard, Doubtful, or Loss (PD grades 14,15, and 16) |  | — |  |  | 3 |  |  | 33 |  |  | 333 |  |  | 307 |  |  | 521 |  |  | 6 |  |  | — |  |  | 1,203 |
Total CRE loans |  | $ | 160 |  |  | $ | 756 |  |  | $ | 1,466 |  |  | $ | 3,684 |  |  | $ | 3,031 |  |  | $ | 4,632 |  |  | $ | 353 |  |  | $ | 57 |  |  | $ | 14,139 |
|  | December 31, 2024
(Dollars in millions) |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior to 2020 |  | Revolving Loans |  | Revolving Loans Converted to Term Loans |  | Total
Credit Quality Indicator: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (PD grades 1 through 12) |  | $ | 694 |  |  | $ | 1,296 |  |  | $ | 3,282 |  |  | $ | 2,778 |  |  | $ | 894 |  |  | $ | 3,281 |  |  | $ | 340 |  |  | $ | 47 |  |  | $ | 12,612 |
Special Mention (PD grade 13) |  | — |  |  | 42 |  |  | 280 |  |  | 198 |  |  | 37 |  |  | 130 |  |  | — |  |  | 1 |  |  | 688 |
Substandard, Doubtful, or Loss (PD grades 14,15, and 16) |  | 3 |  |  | 31 |  |  | 251 |  |  | 278 |  |  | 116 |  |  | 436 |  |  | 6 |  |  | — |  |  | 1,121 |
Total CRE loans |  | $ | 697 |  |  | $ | 1,369 |  |  | $ | 3,813 |  |  | $ | 3,254 |  |  | $ | 1,047 |  |  | $ | 3,847 |  |  | $ | 346 |  |  | $ | 48 |  |  | $ | 14,421 |
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 March 31, 2025 and December 31, 2024. 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 table classified in a vintage year are real estate installment loans.
CONSUMER REAL ESTATE PORTFOLIO
|  | March 31, 2025
(Dollars in millions) |  | 2025 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | Prior to 2021 |  | Revolving Loans |  | Revolving Loans Converted to Term Loans |  | Total
FICO score 740 or greater |  | $ | 220 |  |  | $ | 1,028 |  |  | $ | 1,469 |  |  | $ | 1,974 |  |  | $ | 1,559 |  |  | $ | 2,150 |  |  | $ | 1,433 |  |  | $ | 54 |  |  | $ | 9,887 |
FICO score 720-739 |  | 25 |  |  | 146 |  |  | 192 |  |  | 266 |  |  | 209 |  |  | 364 |  |  | 178 |  |  | 17 |  |  | 1,397 |
FICO score 700-719 |  | 15 |  |  | 98 |  |  | 139 |  |  | 213 |  |  | 172 |  |  | 305 |  |  | 145 |  |  | 18 |  |  | 1,105 |
FICO score 660-699 |  | 28 |  |  | 132 |  |  | 158 |  |  | 181 |  |  | 99 |  |  | 361 |  |  | 147 |  |  | 24 |  |  | 1,130 |
FICO score 620-659 |  | 2 |  |  | 11 |  |  | 10 |  |  | 17 |  |  | 20 |  |  | 140 |  |  | 30 |  |  | 10 |  |  | 240 |
FICO score less than 620 |  | 2 |  |  | 22 |  |  | 19 |  |  | 19 |  |  | 18 |  |  | 211 |  |  | 29 |  |  | 10 |  |  | 330 |
Total consumer real estate loans |  | $ | 292 |  |  | $ | 1,437 |  |  | $ | 1,987 |  |  | $ | 2,670 |  |  | $ | 2,077 |  |  | $ | 3,531 |  |  | $ | 1,962 |  |  | $ | 133 |  |  | $ | 14,089 |
|  | December 31, 2024
(Dollars in millions) |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior to 2020 |  | Revolving Loans |  | Revolving Loans Converted to Term Loans |  | Total
FICO score 740 or greater |  | $ | 1,045 |  |  | $ | 1,493 |  |  | $ | 2,009 |  |  | $ | 1,592 |  |  | $ | 675 |  |  | $ | 1,554 |  |  | $ | 1,430 |  |  | $ | 56 |  |  | $ | 9,854 |
FICO score 720-739 |  | 149 |  |  | 197 |  |  | 270 |  |  | 213 |  |  | 99 |  |  | 271 |  |  | 175 |  |  | 17 |  |  | 1,391 |
FICO score 700-719 |  | 98 |  |  | 140 |  |  | 217 |  |  | 175 |  |  | 72 |  |  | 242 |  |  | 150 |  |  | 18 |  |  | 1,112 |
FICO score 660-699 |  | 133 |  |  | 160 |  |  | 183 |  |  | 100 |  |  | 75 |  |  | 294 |  |  | 146 |  |  | 25 |  |  | 1,116 |
FICO score 620-659 |  | 11 |  |  | 10 |  |  | 17 |  |  | 21 |  |  | 20 |  |  | 122 |  |  | 30 |  |  | 9 |  |  | 240 |
FICO score less than 620 |  | 18 |  |  | 22 |  |  | 19 |  |  | 18 |  |  | 18 |  |  | 203 |  |  | 25 |  |  | 11 |  |  | 334 |
Total consumer real estate loans |  | $ | 1,454 |  |  | $ | 2,022 |  |  | $ | 2,715 |  |  | $ | 2,119 |  |  | $ | 959 |  |  | $ | 2,686 |  |  | $ | 1,956 |  |  | $ | 136 |  |  | $ | 14,047 |
The following table reflects the amortized cost basis by year of origination and refreshed FICO scores for credit card and other loans as of March 31, 2025 and December 31, 2024.
CREDIT CARD & OTHER PORTFOLIO
|  | March 31, 2025
(Dollars in millions) |  | 2025 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | Prior to 2021 |  | Revolving Loans |  | Revolving Loans Converted to Term Loans |  | Total
FICO score 740 or greater |  | $ | 7 |  |  | $ | 17 |  |  | $ | 18 |  |  | $ | 7 |  |  | $ | 4 |  |  | $ | 18 |  |  | $ | 190 |  |  | $ | 13 |  |  | $ | 274 |
FICO score 720-739 |  | 1 |  |  | 7 |  |  | 2 |  |  | 1 |  |  | — |  |  | 3 |  |  | 21 |  |  | 2 |  |  | 37 |
FICO score 700-719 |  | — |  |  | 1 |  |  | 1 |  |  | 1 |  |  | — |  |  | 2 |  |  | 12 |  |  | — |  |  | 17 |
FICO score 660-699 |  | 1 |  |  | 1 |  |  | 1 |  |  | 1 |  |  | — |  |  | 2 |  |  | 15 |  |  | 1 |  |  | 22 |
FICO score 620-659 |  | — |  |  | 1 |  |  | 1 |  |  | — |  |  | — |  |  | 1 |  |  | 8 |  |  | — |  |  | 11 |
FICO score less than 620 |  | 1 |  |  | 7 |  |  | 7 |  |  | 5 |  |  | 3 |  |  | 71 |  |  | 177 |  |  | 1 |  |  | 272 |
Total credit card and other loans |  | $ | 10 |  |  | $ | 34 |  |  | $ | 30 |  |  | $ | 15 |  |  | $ | 7 |  |  | $ | 97 |  |  | $ | 423 |  |  | $ | 17 |  |  | $ | 633 |
|  | December 31, 2024
(Dollars in millions) |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior to 2020 |  | Revolving Loans |  | Revolving Loans Converted to Term Loans |  | Total
FICO score 740 or greater |  | $ | 21 |  |  | $ | 22 |  |  | $ | 10 |  |  | $ | 4 |  |  | $ | 2 |  |  | $ | 19 |  |  | $ | 197 |  |  | $ | 8 |  |  | $ | 283 |
FICO score 720-739 |  | 7 |  |  | 3 |  |  | 1 |  |  | 1 |  |  | — |  |  | 3 |  |  | 20 |  |  | 2 |  |  | 37 |
FICO score 700-719 |  | 1 |  |  | 2 |  |  | 2 |  |  | — |  |  | — |  |  | 2 |  |  | 14 |  |  | — |  |  | 21 |
FICO score 660-699 |  | 1 |  |  | 2 |  |  | 1 |  |  | — |  |  | — |  |  | 3 |  |  | 15 |  |  | 4 |  |  | 26 |
FICO score 620-659 |  | 2 |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | 9 |  |  | — |  |  | 13 |
FICO score less than 620 |  | 8 |  |  | 8 |  |  | 5 |  |  | 4 |  |  | 4 |  |  | 78 |  |  | 181 |  |  | 1 |  |  | 289 |
Total credit card and other loans |  | $ | 40 |  |  | $ | 38 |  |  | $ | 19 |  |  | $ | 9 |  |  | $ | 6 |  |  | $ | 106 |  |  | $ | 436 |  |  | $ | 15 |  |  | $ | 669 |
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 March 31, 2025 and December 31, 2024.
ACCRUING & NON-ACCRUING LOANS AND LEASES
|  | March 31, 2025
|  | 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) |  | $ | 29,764 |  |  | $ | 25 |  |  | $ | 1 |  |  | $ | 29,790 |  |  | $ | 116 |  |  | $ | 12 |  |  | $ | 67 |  |  | $ | 195 |  |  | $ | 29,985 |
Loans to mortgage companies |  | 3,366 |  |  | 3 |  |  | — |  |  | 3,369 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,369 |
Total commercial, financial, and industrial |  | 33,130 |  |  | 28 |  |  | 1 |  |  | 33,159 |  |  | 116 |  |  | 12 |  |  | 67 |  |  | 195 |  |  | 33,354 |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
CRE (b) |  | 13,846 |  |  | 9 |  |  | — |  |  | 13,855 |  |  | 216 |  |  | 24 |  |  | 44 |  |  | 284 |  |  | 14,139 |
Consumer real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
HELOC (c) |  | 2,050 |  |  | 11 |  |  | 3 |  |  | 2,064 |  |  | 18 |  |  | 3 |  |  | 10 |  |  | 31 |  |  | 2,095 |
Real estate installment loans (d) |  | 11,850 |  |  | 42 |  |  | 4 |  |  | 11,896 |  |  | 30 |  |  | 14 |  |  | 54 |  |  | 98 |  |  | 11,994 |
Total consumer real estate |  | 13,900 |  |  | 53 |  |  | 7 |  |  | 13,960 |  |  | 48 |  |  | 17 |  |  | 64 |  |  | 129 |  |  | 14,089 |
Credit card and other: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit card |  | 249 |  |  | 4 |  |  | — |  |  | 253 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 253 |
Other |  | 376 |  |  | 3 |  |  | — |  |  | 379 |  |  | — |  |  | 1 |  |  | — |  |  | 1 |  |  | 380 |
Total credit card and other |  | 625 |  |  | 7 |  |  | — |  |  | 632 |  |  | — |  |  | 1 |  |  | — |  |  | 1 |  |  | 633 |
Total loans and leases |  | $ | 61,501 |  |  | $ | 97 |  |  | $ | 8 |  |  | $ | 61,606 |  |  | $ | 380 |  |  | $ | 54 |  |  | $ | 175 |  |  | $ | 609 |  |  | $ | 62,215 |
|  | December 31, 2024
|  | 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) |  | $ | 29,751 |  |  | $ | 32 |  |  | $ | 1 |  |  | $ | 29,784 |  |  | $ | 101 |  |  | $ | 26 |  |  | $ | 46 |  |  | $ | 173 |  |  | $ | 29,957 |
Loans to mortgage companies |  | 3,471 |  |  | — |  |  | — |  |  | 3,471 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,471 |
Total commercial, financial, and industrial |  | 33,222 |  |  | 32 |  |  | 1 |  |  | 33,255 |  |  | 101 |  |  | 26 |  |  | 46 |  |  | 173 |  |  | 33,428 |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
CRE (b) |  | 14,124 |  |  | 3 |  |  | — |  |  | 14,127 |  |  | 221 |  |  | 10 |  |  | 63 |  |  | 294 |  |  | 14,421 |
Consumer real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
HELOC (c) |  | 2,045 |  |  | 11 |  |  | 2 |  |  | 2,058 |  |  | 19 |  |  | 4 |  |  | 11 |  |  | 34 |  |  | 2,092 |
Real estate installment loans (d) |  | 11,800 |  |  | 39 |  |  | 17 |  |  | 11,856 |  |  | 31 |  |  | 10 |  |  | 58 |  |  | 99 |  |  | 11,955 |
Total consumer real estate |  | 13,845 |  |  | 50 |  |  | 19 |  |  | 13,914 |  |  | 50 |  |  | 14 |  |  | 69 |  |  | 133 |  |  | 14,047 |
Credit card and other: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit card |  | 262 |  |  | 2 |  |  | 1 |  |  | 265 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 265 |
Other |  | 400 |  |  | 2 |  |  | — |  |  | 402 |  |  | — |  |  | 1 |  |  | 1 |  |  | 2 |  |  | 404 |
Total credit card and other |  | 662 |  |  | 4 |  |  | 1 |  |  | 667 |  |  | — |  |  | 1 |  |  | 1 |  |  | 2 |  |  | 669 |
Total loans and leases |  | $ | 61,853 |  |  | $ | 89 |  |  | $ | 21 |  |  | $ | 61,963 |  |  | $ | 372 |  |  | $ | 51 |  |  | $ | 179 |  |  | $ | 602 |  |  | $ | 62,565 |
(a) $185 million and $172 million of C&I loans are nonaccrual loans that have been specifically reviewed for impairment with no related allowance in 2025 and 2024, respectively. (b) $278 million and $287 million of CRE loans are nonaccrual loans that have been specifically reviewed for impairment with no related allowance in 2025 and 2024, respectively. (c) $3 million of HELOC loans are nonaccrual loans that have been specifically reviewed for impairment with no related allowance in both 2025 and 2024. (d) $8 million and $9 million of real estate installment loans are nonaccrual loans that have been specifically reviewed for impairment with no related allowance in 2025 and 2024, 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 March 31, 2025 and December 31, 2024, FHN had commercial loans with amortized cost of approximately $356 million and $352 million, respectively, that were based on the value of underlying collateral. Collateral-dependent C&I and CRE loans totaled $122 million and $234 million, respectively, at March 31, 2025. The collateral for these loans generally consists of business assets including land, buildings, equipment, and financial assets. During the three months ended March 31, 2025, FHN recognized charge-offs of $24 million 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 $38 million, respectively, as of March 31, 2025 and $6 million and $36 million, respectively, as of December 31, 2024. Charge-offs relating to collateral-dependent consumer loans were not significant for the three months ended March 31, 2025 and March 31, 2024. 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 expense-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 effected 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 The following table presents 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 March 31, 2025. LOAN MODIFICATIONS TO BORROWERS EXPERIENCING FINANCIAL DIFFICULTY
| Interest Rate Reduction
| March 31, 2025 |  | March 31, 2024
(Dollars in millions) | Balance |  | % of Total Class |  | Financial Effect |  | Balance |  | % of Total Class |  | Financial Effect
Consumer real estate (a) | $ | — |  |  | — | % |  | Reduced weighted-average contractual interest rate from 9.35% to 3.00% |  | $ | — |  |  | — | % |  | Reduced weighted-average contractual interest rate from 9.95% to 6.75%
Credit card and other (a) | — |  |  | — |  |  | N/A |  | — |  |  | — |  |  | Reduced weighted-average contractual interest rate from 20.50% to 0.00%
Total | $ | — |  |  | — | % |  |  |  | $ | — |  |  | — | % |  |
(a) Balance less than $1 million. |  |  |  |  |  |
| Term Extension
| March 31, 2025 |  | March 31, 2024
(Dollars in millions) | Balance |  | % of Total Class |  | Financial Effect |  | Balance |  | % of Total Class |  | Financial Effect
C&I | $ | 78 |  |  | 0.2 | % |  | Added a weighted-average 1.0 year to the life of loans, which reduced monthly payment amounts for the borrowers |  | $ | 64 |  |  | 0.2 | % |  | Added a weighted-average 1.4 years to the life of loans, which reduced monthly payment amounts for the borrowers
CRE | 29 |  |  | 0.2 |  |  | Added a weighted-average 1.6 years to the life of loans, which reduced monthly payment amounts for the borrowers |  | 19 |  |  | 0.1 |  |  | Added a weighted-average 0.8 years to the life of loans, which reduced monthly payment amounts for the borrowers
Total | $ | 107 |  |  | 0.2 | % |  |  |  | $ | 83 |  |  | 0.1 | % |  |
| Principal Forgiveness |  |  |
| March 31, 2025 |  | March 31, 2024 |  |
(Dollars in millions) | Balance |  | % of Total Class |  | Financial Effect |  | Balance |  | % of Total Class |  | Financial Effect |  |  |  |
Consumer real estate (a) | $ | — |  |  | — | % |  | Less than $1 million of the principal of loans was legally discharged in bankruptcy during the period and the borrowers have not reaffirmed the debt as of period end |  | $ | — |  |  | — | % |  | Less than $1 million of the principal of loans was legally discharged in bankruptcy during the period and the borrowers have not reaffirmed the debt as of period end |  |  |
Total | $ | — |  |  | — | % |  |  |  | $ | — |  |  | — | % |  |  |  |  |
(a) Balance less than $1 million. |  |  |  |  |  |  |  |  |  |
| Combination - Term Extension and Interest Rate Reduction
| March 31, 2025 |  | March 31, 2024
(Dollars in millions) | Balance |  | % of Total Class |  | Financial Effect |  | 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 9.00% to 8.00% |  | $ | — |  |  | — | % |  | N/A
Consumer real estate (a) | — |  |  | — |  |  | Added a weighted-average 11.4 years to the life of loans and reduced weighted-average contractual interest rate from 8.88% to 3.16% |  | 1 |  |  | — |  |  | Added a weighted-average 18.8 years to the life of loans and reduced weighted-average contractual interest rate from 6.43% to 3.69%
Total | $ | — |  |  | — | % |  |  |  | $ | 1 |  |  | — | % |  |
(a) Balance less than $1 million. |  |  |  |  |  |  |  |  |  |
Loan modifications to borrowers experiencing financial difficulty that had a payment default during the period and were modified in the 12 months before default totaled $1 million for the three months ended March 31, 2025 and March 31, 2024. 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.
PERFORMANCE OF LOANS THAT HAVE BEEN MODIFIED IN THE LAST 12 MONTHS
|  | March 31, 2025
(Dollars in millions) |  | Current |  | 30-89 Days Past Due |  | 90+ Days Past Due |  |  | Non-Accruing
C&I |  | $ | 133 |  |  | $ | — |  |  | $ | — |  |  |  | $ | 16 |
CRE |  | 178 |  |  | — |  |  | — |  |  |  | 69 |
Consumer Real Estate |  | 2 |  |  | — |  |  | — |  |  |  | 1 |
Total |  | $ | 313 |  |  | $ | — |  |  | $ | — |  |  |  | $ | 86 |

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