

	June 30		December 31
(Dollars in thousands)	2020		2019
Commercial:
Commercial, financial, and industrial	$	21,393,893	$	20,051,091
Commercial real estate	4,813,341		4,337,017
Consumer:
Consumer real estate (a)	6,052,393		6,177,139
Credit card & other	449,310		495,864
Loans, net of unearned income	$	32,708,937	$	31,061,111
Allowance for loan losses	537,881		200,307
Total net loans	$	32,171,056	$	30,860,804

The loan portfolio is disaggregated into 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 determined based on the initial measurement attribute (i.e., amortized cost or purchased credit-impaired), risk characteristics of the loan, and FHN’s method for monitoring and assessing credit risk. Commercial loan portfolio segments include commercial, financial and industrial (“C&I”) and commercial real estate ("CRE"). Commercial classes within C&I include general C&I, loans to mortgage companies ("LMC"), the trust preferred loans (“TRUPS”) (i.e. long-term unsecured loans to bank and insurance-related businesses) portfolio and purchased credit-impaired (“PCI”) loans (for periods prior to 2020). Loans to mortgage companies include 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. Commercial classes within CRE include income CRE, residential CRE and PCI loans (for periods prior to 2020). Consumer loan portfolio segments include consumer real estate, and the credit card and other portfolio. Consumer classes include home equity lines of credit (“HELOCs”), real estate (“R/E”) installment and PCI loans (for periods prior to 2020) within the consumer real estate segment and credit card and other.

Credit risk is the risk of loss due to adverse changes in a borrower’s or counterparty’s ability to meet its financial obligations under agreed upon terms. FHN is subject to credit risk in lending, trading, investing, liquidity/funding, and asset management activities although lending activities have the most exposure to credit risk. The nature and amount of credit risk depends on the types of transaction, the structure of those transactions, collateral received, the use of guarantors and the parties involved.

FHN assesses and manages credit risk through a series of policies, processes, measurement systems, and controls. FHN’s credit risk function ensures subject matter experts are providing oversight, support and credit approvals, particularly in the specialty lending areas where industry-specific knowledge is required. Management emphasizes general portfolio servicing such that emerging risks are able to be identified early enough to correct potential deficiencies, prevent further credit deterioration, and mitigate credit losses.

The C&I portfolio is comprised of loans used for general business purposes. Typical products including working capital lines of credit, term loan financing of owner-occupied real estate and fixed assets, and trade credit enhancement through letters of credit. FHN utilizes deal teams comprised of relationship managers (RMs), portfolio managers (PMs), credit analysts and other specialists to identify, mitigate, document, and manage ongoing risk. Their function includes enhanced analytical support during loan origination and servicing, monitoring the financial condition of the borrower, and tracking compliance with loan agreements. FHN strives to identify problem assets early through comprehensive policies and guidelines, targeted portfolio reviews, more frequent servicing on lower rated borrowers, and an emphasis on frequent grading.

To the extent a guarantor/sponsor is used to support a commercial lending decision, FHN analyzes capability to pay, factoring in, among other things, liquidity and direct/indirect cash flows. A strong, legally enforceable guaranty can mitigate the risk of default or loss, justify a less severe rating, and consequently reduce the level of allowance or charge-off that might otherwise be deemed appropriate.

Loans to mortgage companies include 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. Approximately 95 percent of the loans to mortgage companies are collateralized with government guaranteed loans. The loans are of short duration with maturities less than one year.

TRUPS loans are long-term unsecured loans to bank and insurance-related businesses. TRUPS lending was originally extended as a form of “bridge” financing to participants in the pooled trust preferred securitization program offered primarily to smaller banking (generally less than $15 billion in total assets) and insurance institutions through FHN’s fixed income business. Origination of TRUPS lending ceased in early 2008. Individual TRUPS are regraded at least quarterly as part of FHN’s commercial loan review process.

Commercial Real Estate loans include financings for commercial construction and nonconstruction loans. The income-producing CRE class contains loans and draws on lines and letters of credit to commercial real estate developers for the construction and mini-permanent financing of income-producing real estate. The residential CRE class includes loans to residential builders and developers for the purpose of constructing single-family homes, condominiums, and town homes and on a limited basis, for developing residential subdivisions. Active residential CRE lending is primarily focused in certain core markets with nearly all new originations made to “strategic” clients. FHN considers a “strategic” residential CRE borrower as a homebuilder who demonstrates the

ability to withstand cyclical downturns, maintains active development and investment activities providing for regular financing opportunities, and is fundamentally sound as evidenced by a prudent loan structure, appropriate covenants and recourse, and capable and willing sponsors in markets with positive homebuilding and economic dynamics. The credit administration and ongoing monitoring of these portfolios consists of multiple internal control processes including stressing a borrower’s or project’s financial capacity utilizing numerous attributes such as interest rates, vacancy, and discount rates. Key information captured from the various portfolios is aggregated and utilized to assist with the assessment and adequacy of the ALLL and to steer portfolio management strategies.

Included in commercial loans are $2.1 billion of C&I loans made under the Paycheck Protection Program ("PPP Loans") of the Small Business Administration ("SBA"). PPP Loans have been extended to businesses in response to the economic effects of the COVID-19 pandemic. PPP Loans are fully government guaranteed with the SBA making prepayments through a provision whereby partial or complete forgiveness is granted based on the nature and extent of each borrower's expenditures in relation to program requirements for payroll-related and other types of expenses. PPP Loans have maximum terms ranging from two to five years, with SBA prepayments expected to occur in the latter half of 2020 and the first half of 2021. Amounts not forgiven by the SBA will amortize over the applicable remaining loan term. Due to the government guarantee and forgiveness provisions, PPP Loans are considered to have no credit risk and receive no risk weighting for capital calculations.

The consumer real estate portfolio is primarily comprised of home equity lines and installment loans within FHN’s regional banking segment and jumbo mortgages and one-time-close (“OTC”) completed construction loans in FHN’s non-strategic segment that were originated through pre-2009 mortgage businesses. The corporate segment also includes loans that were previously included in off-balance sheet proprietary securitization trusts that were brought back into the loan portfolios at fair value through the execution of cleanup calls due to the relatively small balances left in the securitization and should continue to run-off. Generally performance of this portfolio is affected by life events that affect borrowers’ finances, the level of unemployment, and home prices. FHN obtains first lien performance information from third parties and through loss mitigation activities.

As discussed in Note 1 - Summary of Significant Accounting Policies, the ALLL estimation process was revised on January 1, 2020 to reflect the adoption of ASU 2016-13. All information contained in the following disclosures reflects the application of requirements from the adoption of ASU 2016-13 for periods after 2019. Information for periods prior to 2020 has been retained with the content consistent with prior disclosures.

FHN has a concentration of residential real estate loans (19 percent of total loans). Loans to finance and insurance companies total $2.5 billion (12 percent of the C&I portfolio, or 8 percent of the total loans). FHN had loans to mortgage companies totaling $4.0 billion (19 percent of the C&I segment, or 12 percent of total loans) as of June 30, 2020. As a result, 31 percent of the C&I segment is sensitive to impacts on the financial services industry.

FHN employs a dual grade commercial risk grading methodology to assign an estimate for the probability of default (“PD”) and the loss given default (“LGD”) 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 portfolio by analyzing the migration of loans between grading categories. PD grades assigned through FHN’s risk rating process are used as a loan level input to inform probability of default forecasts under certain macroeconomic scenarios. Each PD grade corresponds to an estimated one-year default probability percentage; a PD 1 has the lowest expected default probability, and probabilities increase as grades progress down the scale. 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).

Pass loan grades are required to be reassessed annually or earlier whenever there has been a material change in the financial condition of the borrower or risk characteristics of the relationship. All commercial loans over $1 million and certain commercial loans over $500,000 that are graded 13 or worse are reassessed on a quarterly basis. Loan grading discipline is regularly reviewed internally by Credit Assurance Services to determine if the process continues to result in accurate loan grading across the portfolio. FHN may utilize availability of guarantors/sponsors to support lending decisions during the credit underwriting process and when determining the assignment of internal loan grades. LGD grades are assigned based on a scale of 1-12 and represent FHN’s expected recovery based on collateral type in the event a loan defaults. See Note 5 – Allowance for Loan Losses for further discussion on the credit grading system.



	C&I
(Dollars in thousands)	2020		2019		2018		2017		2016		prior to 2016 (a)		LMC (b)		Revolving Loans		Revolving Loans converted to term loans (c)		Total
PD Grade:
1 (d)	$	2,078,712	$	99,978	$	121,167	$	75,521	$	106,700	$	108,574	$	—	$	83,309	$	56	$	2,674,017
2	56,810		223,191		100,816		79,318		168,838		90,484		—		95,035		126		814,618
3	42,983		153,671		49,176		89,945		30,381		97,338		741,382		125,470		3,490		1,333,836
4	261,626		335,130		145,047		122,185		129,859		142,129		685,876		259,379		10,653		2,091,884
5	304,710		496,565		220,632		145,650		96,325		163,676		700,944		384,874		12,654		2,526,030
6	360,649		714,704		246,607		195,634		53,597		155,755		1,198,775		667,570		558		3,593,849
7	309,088		723,728		339,953		145,385		100,069		171,016		552,192		598,772		48,291		2,988,494
8	343,391		593,106		194,030		175,289		36,044		96,204		93,900		379,261		7,110		1,918,335
9	171,524		293,768		89,519		66,927		65,539		75,753		25,198		283,883		10,670		1,082,781
10	96,735		171,901		85,644		60,721		50,429		54,729		15,325		227,301		5,082		767,867
11	53,872		82,677		74,977		58,964		70,190		38,059		—		148,656		3,233		530,628
12	51,861		33,083		52,013		47,162		20,214		29,674		6,999		95,943		477		337,426
13	39,047		57,585		10,231		15,916		51,816		45,984		—		114,971		498		336,048
14,15,16	10,898		23,808		39,008		29,306		40,627		13,194		—		98,165		2,548		257,554
Collectively evaluated for impairment	4,181,906		4,002,895		1,768,820		1,307,923		1,020,628		1,282,569		4,020,591		3,562,589		105,446		21,253,367
Individually evaluated for impairment	21,146		6,613		12,454		21,995		1,909		22,114		—		50,319		3,976		140,526
Total C&I loans	$	4,203,052	$	4,009,508	$	1,781,274	$	1,329,918	$	1,022,537	$	1,304,683	$	4,020,591	$	3,612,908	$	109,422	$	21,393,893



	Income CRE
(Dollars in thousands)	2020		2019		2018		2017		2016		prior to 2016		Revolving Loans		Revolving Loans converted to term loans		Total
PD Grade:
1	$	21,886	$	—	$	392	$	106	$	158	$	1,190	$	—	$	—	$	23,732
2	7,798		30,919		405		216		617		3,145		—		—		43,100
3	97,338		212,413		75,483		34,863		42,468		25,511		78,004		181		566,261
4	90,915		292,657		100,058		130,549		94,836		45,975		839		238		756,067
5	320,904		279,229		138,520		152,573		112,018		45,048		37,306		6,224		1,091,822
6	264,892		215,714		125,075		107,697		33,716		119,742		37,800		7,930		912,566
7	164,896		293,784		121,601		64,796		20,076		24,648		40,187		1,224		731,212
8	23,028		93,700		55,579		11,850		28,382		50,403		6,845		128		269,915
9	35,357		36,942		25,157		22,936		2,219		19,126		280		—		142,017
10	23,623		8,323		7,323		2,803		9,125		17,320		—		—		68,517
11	6,936		21,414		6,890		7,347		3,862		19,638		—		1,330		67,417
12	2,962		14,437		2,383		905		652		13,476		64		228		35,107
13	525		455		771		16,185		—		570		328		—		18,834
14,15,16	515		10,808		45		19,065		128		3,882		7,553		—		41,996
Collectively evaluated for impairment	1,061,575		1,510,795		659,682		571,891		348,257		389,674		209,206		17,483		4,768,563
Individually evaluated for impairment	—		—		—		—		—		160		—		—		160
Total CRE-IP	$	1,061,575	$	1,510,795	$	659,682	$	571,891	$	348,257	$	389,834	$	209,206	$	17,483	$	4,768,723



	Residential CRE
(Dollars in thousands)	2020		2019		2018		2017		2016		prior to 2016		Revolving Loans		Revolving Loans converted to term loans		Total
PD Grade:
1	$	—	$	—	$	—	$	—	$	—	$	20	$	—	$	—	$	20
2	—		—		—		—		—		—		—		—		—
3	—		151		268		482		—		95		—		—		996
4	—		722		—		—		—		106		—		—		828
5	93		—		—		—		76		12		—		—		181
6	14,512		106		43		333		30		234		—		—		15,258
7	348		470		2,904		1,776		—		241		13		—		5,752
8	467		24		443		—		6		89		100		—		1,129
9	325		520		262		—		490		76		—		—		1,673
10	179		960		277		—		—		6		—		—		1,422
11	4,093		8,660		218		156		—		50		—		—		13,177
12	154		1,530		44		—		—		538		—		—		2,266
13	1,310		—		—		—		—		132		—		—		1,442
14,15,16	171		264		—		—		—		39		—		—		474
Collectively evaluated for impairment	21,652		13,407		4,459		2,747		602		1,638		113		—		44,618
Individually evaluated for impairment	—		—		—		—		—		—		—		—		—
Total CRE-RES	$	21,652	$	13,407	$	4,459	$	2,747	$	602	$	1,638	$	113	$	—	$	44,618



	December 31, 2019
(Dollars in thousands)	General C&I		Loans to Mortgage Companies		TRUPS (a)		Income CRE		Residential CRE		Total		Percentage of Total		Allowance for Loan Losses
PD Grade:
1	$	696,040	$	—	$	—	$	1,848	$	—	$	697,888	3	%	$	69
2	767,048		—		—		48,906		38		815,992		4		165
3	743,123		877,210		3,314		474,067		806		2,098,520		9		274
4	1,237,772		692,971		46,375		680,223		477		2,657,818		11		738
5	1,986,761		670,402		72,512		993,628		1,700		3,725,003		15		8,265
6	2,511,290		1,410,387		27,263		717,062		17,027		4,683,029		19		12,054
7	2,708,707		509,616		18,378		641,345		30,925		3,908,971		16		20,409
8	1,743,364		136,771		—		269,407		16,699		2,166,241		9		22,514
9	1,101,873		77,139		31,909		169,586		13,007		1,393,514		6		17,484
10	563,635		21,229		18,536		59,592		2,153		665,145		3		10,197
11	495,140		—		—		81,682		2,302		579,124		2		13,454
12	262,906		15,158		—		28,807		1,074		307,945		1		8,471
13	232,823		—		—		32,966		1,126		266,915		1		8,142
14,15,16	263,076		—		—		43,400		626		307,102		1		29,318
Collectively evaluated for impairment	15,313,558		4,410,883		218,287		4,242,519		87,960		24,273,207		100		151,554
Individually evaluated for impairment	82,438		—		—		1,563		—		84,001		—		6,196
Purchased credit-impaired loans	25,925		—		—		4,155		820		30,900		—		848
Total commercial loans	$	15,421,921	$	4,410,883	$	218,287	$	4,248,237	$	88,780	$	24,388,108	100	%	$	158,598

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 Fair Isaac Corporation (“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 as of June 30, 2020. Within consumer real estate, classes include home equity line of credit ("HELOC") and real estate installment. 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 revolving loans converted to term loans. 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 a fixed term loan and are classified below in their vintage year from prior to 2016 to 2020. All loans in the following table classified in a vintage year are real estate installment loans.



	Consumer Real Estate
(Dollars in thousands)	2020		2019		2018		2017		2016		Prior to 2016		Revolving Loans		Revolving Loans converted to term loans (a)		Total
FICO score 740 or greater	$	394,137	$	576,132	$	410,188	$	420,822	$	527,019	$	1,255,357	$	626,844	$	135,436	$	4,345,935
FICO score 720-739	43,808		67,904		26,383		37,259		48,677		132,407		76,045		28,913		461,396
FICO score 700-719	31,459		66,155		28,201		26,164		45,038		110,244		54,941		29,613		391,815
FICO score 660-699	41,314		51,096		33,382		32,745		36,625		153,335		76,593		44,067		469,157
FICO score 620-659	12,524		17,140		10,922		12,789		13,178		70,067		24,185		29,940		190,745
FICO score less than 620	2,180		11,168		5,832		9,227		14,456		79,599		25,526		45,357		193,345
Total	$	525,422	$	789,595	$	514,908	$	539,006	$	684,993	$	1,801,009	$	884,134	$	313,326	$	6,052,393



	Other Consumer
(Dollars in thousands)	2020		2019		2018		2017		2016		Prior to 2016		Revolving Loans		Revolving Loans converted to term loans (a)		Total
FICO score 740 or greater	$	16,160	$	36,450	$	21,476	$	10,499	$	3,988	$	14,774	$	173,832	$	4,401	$	281,580
FICO score 720-739	3,238		5,226		2,784		1,615		747		1,844		27,603		1,319		44,376
FICO score 700-719	2,168		4,246		2,542		1,521		706		1,980		19,983		1,052		34,198
FICO score 660-699	3,654		6,546		3,149		2,172		1,423		2,737		27,534		1,581		48,796
FICO score 620-659	1,269		2,386		1,576		891		836		1,813		10,759		963		20,493
FICO score less than 620	333		1,059		1,044		522		2,311		3,167		10,037		1,394		19,867
Total	$	26,822	$	55,913	$	32,571	$	17,220	$	10,011	$	26,315	$	269,748	$	10,710	$	449,310

The following table reflects the percentage of balances outstanding by average, refreshed FICO scores for the HELOC and real estate installment classes of loans as of December 31, 2019.



	December 31, 2019
(Dollars in thousands)	HELOC		R/E Installment Loans (b)
FICO score 740 or greater	62.0	%	71.9	%
FICO score 720-739	8.6		8.3
FICO score 700-719	7.6		6.3
FICO score 660-699	10.8		8.1
FICO score 620-659	4.7		2.8
FICO score less than 620 (a)	6.3		2.6
Total	100.0	%	100.0	%

Nonperforming loans are loans 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 nonaccruals are loans that FHN

continues to receive payments including residential real estate loans where the borrower has been discharged of personal obligation through bankruptcy, and second liens, regardless of delinquency status, behind first liens that are 90 or more days past due, are bankruptcies, or are TDRs. Past due loans are loans contractually past due as to interest or principal payments, but which have not yet been put on nonaccrual status.



	Accruing								Non-Accruing
(Dollars in thousands)	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
Commercial (C&I):
General C&I (a)	$	17,031,822	$	4,671	$	287	$	17,036,780	$	79,022	$	254	$	48,069	$	127,345	$	17,164,125
Loans to mortgage companies	4,019,766		825		—		4,020,591		—		—		—		—		4,020,591
TRUPS (b)	209,177		—		—		209,177		—		—		—		—		209,177
Total commercial (C&I)	21,260,765		5,496		287		21,266,548		79,022		254		48,069		127,345		21,393,893
Commercial real estate:
Income CRE	4,766,561		95		—		4,766,656		797		—		1,270		2,067		4,768,723
Residential CRE	44,618		—		—		44,618		—		—		—		—		44,618
Total commercial real estate	4,811,179		95		—		4,811,274		797		—		1,270		2,067		4,813,341
Consumer real estate:
HELOC	1,136,288		5,736		6,800		1,148,824		41,608		1,720		5,308		48,636		1,197,460
R/E installment loans	4,787,467		13,778		6,000		4,807,245		31,786		2,077		13,825		47,688		4,854,933
Total consumer real estate	5,923,755		19,514		12,800		5,956,069		73,394		3,797		19,133		96,324		6,052,393
Credit card & other:
Credit card	164,527		1,520		1,297		167,344		—		—		—		—		167,344
Other	281,066		531		114		281,711		86		77		92		255		281,966
Total credit card & other	445,593		2,051		1,411		449,055		86		77		92		255		449,310
Total loans, net of unearned income	$	32,441,292	$	27,156	$	14,498	$	32,482,946	$	153,299	$	4,128	$	68,564	$	225,991	$	32,708,937

The following table reflects accruing and non-accruing loans by class on December 31, 2019:



	Accruing								Non-Accruing
(Dollars in thousands)	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
Commercial (C&I):
General C&I	$	15,314,292	$	7,155	$	237	$	15,321,684	$	36,564	$	14,385	$	23,363	$	74,312	$	15,395,996
Loans to mortgage companies	4,410,883		—		—		4,410,883		—		—		—		—		4,410,883
TRUPS (a)	218,287		—		—		218,287		—		—		—		—		218,287
Purchased credit-impaired loans	23,840		287		1,798		25,925		—		—		—		—		25,925
Total commercial (C&I)	19,967,302		7,442		2,035		19,976,779		36,564		14,385		23,363		74,312		20,051,091
Commercial real estate:
Income CRE	4,242,044		679		—		4,242,723		—		19		1,340		1,359		4,244,082
Residential CRE	87,487		7		—		87,494		—		466		—		466		87,960
Purchased credit-impaired loans	4,752		128		95		4,975		—		—		—		—		4,975
Total commercial real estate	4,334,283		814		95		4,335,192		—		485		1,340		1,825		4,337,017
Consumer real estate:
HELOC	1,217,344		9,156		5,669		1,232,169		43,007		4,227		7,472		54,706		1,286,875
R/E installment loans (b)	4,812,446		12,894		9,170		4,834,510		20,710		1,076		9,202		30,988		4,865,498
Purchased credit-impaired loans	18,720		2,770		3,276		24,766		—		—		—		—		24,766
Total consumer real estate	6,048,510		24,820		18,115		6,091,445		63,717		5,303		16,674		85,694		6,177,139
Credit card & other:
Credit card	198,917		1,076		1,178		201,171		—		—		—		—		201,171
Other	291,700		1,802		337		293,839		101		44		189		334		294,173
Purchased credit-impaired loans	323		98		99		520		—		—		—		—		520
Total credit card & other	490,940		2,976		1,614		495,530		101		44		189		334		495,864
Total loans, net of unearned income	$	30,841,035	$	36,052	$	21,859	$	30,898,946	$	100,382	$	20,217	$	41,566	$	162,165	$	31,061,111

A modification is classified as a TDR if the borrower is experiencing financial difficulty and it is determined that FHN has granted a concession to the borrower. 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. Many aspects of a borrower’s financial situation are assessed when determining whether they are experiencing financial difficulty. Concessions could include extension of the maturity date, reductions of the interest rate (which may make the rate lower than current market

For all classes within the commercial portfolio segment, TDRs are typically modified through forbearance agreements (generally 6 to 12 months). Forbearance agreements could include reduced interest rates, reduced payments, release of guarantor, or entering into short sale agreements. FHN’s proprietary modification programs for consumer loans are generally structured using parameters of U.S. government-sponsored programs such as the former Home Affordable Modification Program (“HAMP”). Within the HELOC and R/E installment loans classes of the consumer portfolio segment, TDRs are typically modified by reducing the interest rate (in increments of 25 basis

points to a minimum of 1 percent for up to 5 years) and a possible maturity date extension to reach an affordable housing debt-to-income ratio. After 5 years, the interest rate generally returns to the original interest rate prior to modification; for certain modifications, the modified interest rate increases 2 percent per year until the original interest rate prior to modification is achieved. Prior to 2020, Consumer real estate mortgage TDRs (previously classified as permanent mortgage) were typically modified by reducing the interest rate (in increments of 25 basis points to a minimum of 2 percent for up to 5 years) and a possible maturity date extension to reach an affordable housing debt-to-income ratio. After 5 years, the interest rate stepped up 1 percent every year until it reached the Federal Home Loan Mortgage Corporation Weekly Survey Rate cap. Contractual maturities may be extended to 40 years for consumer real estate loans. Within the credit card class of the consumer portfolio segment, TDRs are typically modified through either a short-term credit card hardship program or a longer-term credit card workout program. In

On June 30, 2020 and December 31, 2019, FHN had $192.6 million and $206.3 million of portfolio loans classified as TDRs, respectively. For TDRs in the loan portfolio, FHN had loan loss reserves of $13.6 million, or 7 percent as of June 30, 2020, and $19.7 million, or 10 percent as of December 31, 2019. Additionally, $45.1 million and $51.1 million of loans held-for-sale as of June 30, 2020 and December 31, 2019, respectively, were classified as TDRs.



	Three Months Ended June 30, 2020					Six Months Ended June 30, 2020
(Dollars in thousands)	Number	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial (C&I):
General C&I	1	$	4,649	$	4,699	4	$	10,576	$	9,132
Total commercial (C&I)	1	4,649		4,699		4	10,576		9,132
Consumer real estate:
HELOC	4	152		151		12	1,064		1,042
R/E installment loans	40	7,793		7,741		50	9,304		9,238
Total consumer real estate	44	7,945		7,892		62	10,368		10,280
Credit card & other	16	96		91		40	254		237
Total troubled debt restructurings	61	$	12,690	$	12,682	106	$	21,198	$	19,649



	Three Months Ended June 30, 2019					Six Months Ended June 30, 2019
(Dollars in thousands)	Number	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial (C&I):
General C&I	1	$	222	$	222	3	$	14,117	$	14,042
Total commercial (C&I)	1	222		222		3	14,117		14,042
Consumer real estate:
HELOC	25	3,271		3,235		44	5,375		5,319
R/E installment loans	19	1,534		1,523		66	8,959		8,936
Total consumer real estate	44	4,805		4,758		110	14,334		14,255
Credit card & other	18	109		103		33	183		174
Total troubled debt restructurings	63	$	5,136	$	5,083	146	$	28,634	$	28,471



	Three Months Ended June 30, 2020			Six Months Ended June 30, 2020
(Dollars in thousands)	Number	Recorded Investment		Number	Recorded Investment
Commercial (C&I):
General C&I	—	$	—	—	$	—
Total commercial (C&I)	—	—		—	—
Consumer real estate:
HELOC	3	882		7	1,842
R/E installment loans	5	1,351		10	1,695
Total consumer real estate	8	2,233		17	3,537
Credit card & other	7	29		14	60
Total troubled debt restructurings	15	$	2,262	31	$	3,597



	Three Months Ended June 30, 2019			Six Months Ended June 30, 2019
(Dollars in thousands)	Number	Recorded Investment		Number	Recorded Investment
Commercial (C&I):
General C&I	—	$	—	—	$	—
Total commercial (C&I)	—	—		—	—
Consumer real estate:
HELOC	1	66		2	99
R/E installment loans	1	38		1	38
Total consumer real estate	2	104		3	137
Credit card & other	7	14		15	32
Total troubled debt restructurings	9	$	118	18	$	169

The following table presents a rollforward of the accretable yield for the year ended December 31, 2019:



	Year Ended
(Dollars in thousands)	2019
Balance, beginning of period	$	13,375
Accretion	(5,792		)
Adjustment for payoffs	(2,438		)
Adjustment for charge-offs	(479		)
Adjustment for pool excess recovery (a)	—
Increase in accretable yield (b)	5,513
Disposals	(4		)
Other	(367		)
Balance, end of period	$	9,808

The following tables provide information at December 31, 2019 by class related to individually impaired loans and consumer TDRs, regardless of accrual status. Recorded investment is defined as the amount of the investment in a loan, excluding any valuation allowance but including any direct write-down of the investment. For purposes of this disclosure, TRUPS valuation allowance has been excluded.



	December 31, 2019
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance
Impaired loans with no related allowance recorded:
Commercial:
General C&I	$	52,672	$	63,602	$	—
Income CRE	1,563		1,563		—
Total	$	54,235	$	65,165	$	—
Consumer:
HELOC (a)	$	4,940	$	10,438	$	—
R/E installment loans (a)	7,593		10,054		—
Total	$	12,533	$	20,492	$	—
Impaired loans with related allowance recorded:
Commercial:
General C&I	$	29,766	$	31,536	$	6,196
TRUPS	—		—		—
Income CRE	—		—		—
Total	$	29,766	$	31,536	$	6,196
Consumer:
HELOC	$	55,522	$	59,122	$	7,016
R/E installment loans	94,191		104,121		12,282
Credit card & other	653		653		422
Total	$	150,366	$	163,896	$	19,720
Total commercial	$	84,001	$	96,701	$	6,196
Total consumer	$	162,899	$	184,388	$	19,720
Total impaired loans	$	246,900	$	281,089	$	25,916



	Three Months Ended June 30					Six Months Ended June 30
		2019				2019
(Dollars in thousands)		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Impaired loans with no related allowance recorded:
Commercial:
General C&I		$	67,337	$	178	$	61,552	$	357
Loans to mortgage companies		18,628		—		9,314		—
Income CRE		1,481		13		1,518		27
Residential CRE		—		—		—		—
Total		$	87,446	$	191	$	72,384	$	384
Consumer:
HELOC (a)		$	6,462	$	—	$	7,030	$	—
R/E installment loans (a)		8,910		—		8,773		—
Total		$	15,372	$	—	$	15,803	$	—
Impaired loans with related allowance recorded:
Commercial:
General C&I		$	10,760	$	—	$	9,026	$	—
TRUPS		2,806		—		2,835		—
Income CRE		347		—		357		9
Residential CRE		—		—		—		—
Total		$	13,913	$	—	$	12,218	$	9
Consumer:
HELOC		$	62,623	$	504	$	63,819	$	1,026
R/E installment loans		107,892		815		107,975		1,637
Credit card & other		692		4		691		9
Total		$	171,207	$	1,323	$	172,485	$	2,672
Total commercial		$	101,359	$	191	$	84,602	$	393
Total consumer		$	186,579	$	1,323	$	188,288	$	2,672
Total impaired loans		$	287,938	$	1,514	$	272,890	$	3,065