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Loans and Leases
 9 Months Ended
Sep. 30, 2020
Receivables [Abstract]  
Loans and Leases Loans and Leases
The following tables and data as of September 30, 2020 include the loan and lease balances acquired in the IBKC merger and Truist Bank branch acquisition, which were recorded at fair value on their respective transaction closing dates. See Note 2 - Acquisitions and Divestitures for further information.
As discussed in Note 1 - Financial Information, 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.
Loans and leases are disclosed in portfolio segments and classes. A class is generally a disaggregation of a portfolio
segment. In determining classes, FHN considered the loan characteristics and methods it applies in 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: commercial, financial, and industrial ("C&I"), which includes commercial and industrial loans and loans to mortgage companies ("LMC"), commercial real estate ("CRE"), consumer real estate, which includes both real estate ("R/E") installment and home equity lines of credit ("HELOCs"), and credit card and other. The following table provides the amortized cost basis of loans and leases by portfolio segment and class as of September 30, 2020 and December 31, 2019, excluding accrued interest of $177.5 million and $84.6 million, which is included in Other assets in the Consolidated Balance Sheets.
September 30,December 31,
(Dollars in thousands)20202019
Commercial:
Commercial and industrial (a)$28,048,649 $15,640,208 
Loans to mortgage companies5,607,068 4,410,883 
   Total commercial, financial, and industrial 33,655,717 20,051,091 
Commercial real estate12,510,887 4,337,017 
Consumer:
HELOC2,549,837 1,287,441 
R/E installment loans9,778,032 4,889,698 
   Total consumer real estate12,327,869 6,177,139 
Credit card and other1,212,058 495,864 
Loans and leases$59,706,531 $31,061,111 
Allowance for loan and lease losses(988,102)(200,307)
Net loans and leases$58,718,429 $30,860,804 
(a)September 30, 2020 balance includes equipment financing leases of $524.2 million.

In addition to loans issued in the normal course of business, FHN considers overdrafts on customer deposit accounts to be loans and reclassifies these overdrafts as loans in its consolidated balance sheets. At September 30, 2020 and December 31, 2019, overdrafts of $9.0 million and $8.1 million, respectively, had been reclassified to loans.

Loans and leases with carrying values of $39.4 billion and $19.2 billion were pledged as collateral for borrowings at September 30, 2020 and December 31, 2019, respectively.







Portfolio Segment Risk Factors
Commercial Loans and Leases
The C&I portfolio is comprised of loans and leases used for general business purposes. Typical products including working capital lines of credit, term loan financing of owner-occupied real estate and fixed assets, direct financing and sales-type leases, 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. Over 99% of the loans to mortgage companies are collateralized with government guaranteed loans. The loans are of short duration with maturities less than one year.
Commercial Real Estate loans include financings for commercial construction and nonconstruction loans. Income-producing CRE loans and draws on lines and letters of credit are to commercial real estate developers for the construction and mini-permanent financing of income-producing real estate. Residential CRE loans are 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.
Paycheck Protection Program Loans
Included in C&I loans are $4.2 billion of 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 the amount of the loan forgiven by the SBA expected to be paid 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.
Consumer Loans
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 the consumer real estate 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.
FHN performs continuous HELOC account review processes in order to identify higher-risk home equity lines and initiate preventative and corrective actions. The reviews consider a number of account activity patterns and characteristics such as the number of times delinquent within recent periods, changes in credit bureaus score since origination, scored degradation, performance of the first lien, and account utilization. FHN may block future draws on accounts in order to mitigate risk of loss to FHN.
The credit card and other portfolio is primarily comprised of automobile loans, credit card receivables, and other consumer-related credits.
Concentrations
FHN has a concentration of residential real estate loans (21% of total loans). Loans to finance and insurance companies total $3.1 billion (9% of the C&I portfolio, or 5% of the total loans). FHN had loans to mortgage companies totaling $5.6 billion (17% of the C&I segment, or 9% of total loans) as of September 30, 2020. As a result, 26% 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 (“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. 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 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 September 30, 2020:
 C&I
(Dollars in thousands)20202019201820172016Prior to 2016 LMC (a)Revolving
Loans		Revolving
Loans converted
to term loans (b)		Total
Credit Quality Indicator:
Pass (PD grades 1 through 12) (c)$7,795,816 $5,770,378 $3,036,673 $1,917,886 $1,323,236 $2,414,920 $5,607,068 $4,533,240 $60,592 $32,459,809 
Special Mention (PD grade 13)86,675 75,224 53,067 22,692 45,640 80,438 — 123,383 47,364 534,483 
Substandard, Doubtful, or Loss (PD grades 14,15, and 16)107,126 111,716 109,639 50,811 60,082 46,871 — 165,173 10,007 661,425 
Total C&I loans$7,989,617 $5,957,318 $3,199,379 $1,991,389 $1,428,958 $2,542,229 $5,607,068 $4,821,796 $117,963 $33,655,717 
(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.
(b)    $40.0 million of C&I loans were converted from revolving to term in 2020.
(c)    2020 balance includes PPP loans.

CRE
(Dollars in thousands)20202019201820172016prior to 2016Revolving
Loans		Revolving
Loans converted
to term loans		Total
Credit Quality Indicator:
Pass (PD grades 1 through 12)2,099,167 3,244,741 1,940,046 1,410,004 1,056,094 2,015,504 300,752 18,836 12,085,144 
Special Mention (PD grade 13)15,089 31,230 97,016 35,573 83,254 45,875 4,065 — 312,102 
Substandard, Doubtful, or Loss (PD grades 14,15, and 16)676 2,481 22,018 41,211 8,180 31,746 7,329 — 113,641 
Total CRE loans2,114,932 3,278,452 2,059,080 1,486,788 1,147,528 2,093,125 312,146 18,836 12,510,887 
The following table provides the balances of commercial loan portfolio classes with associated allowance, disaggregated by PD grade as of December 31, 2019.
 December 31, 2019
(Dollars in thousands)C&ILoans to
Mortgage
Companies		CRETotalPercentage
of Total		Allowance
for Loan
Losses
PD Grade:
Pass (PD grades 1 through 12) (a)$15,035,946 $4,410,883 $4,252,361 $23,699,190 98 %$114,094 
Special Mention (PD grade 13)232,823 — 34,092 266,915 1 8,142 
Substandard, Doubtful, or Loss (PD grades 14,15, and 16)263,076 — 44,026 307,102 1 29,318 
Collectively evaluated for impairment15,531,845 4,410,883 4,330,479 24,273,207 100 151,554 
Individually evaluated for impairment82,438 — 1,563 84,001 — 6,196 
Purchased credit-impaired loans25,925 — 4,975 30,900 — 848 
Total commercial loans$15,640,208 $4,410,883 $4,337,017 $24,388,108 100 %$158,598 
(a) Balances presented net of a $19.1 million valuation allowance.


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 loans as of September 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)20202019201820172016Prior to 2016Revolving
Loans		Revolving
Loans converted
to term loans (a)		Total
FICO score 740 or greater$809,079 $1,242,805 $797,553 $677,865 $746,150 $1,910,304 $1,304,498 $178,921 $7,667,175 
FICO score 720-73996,670 168,223 110,859 81,669 93,933 205,824 204,419 30,342 991,939 
FICO score 700-71984,995 122,293 89,193 84,727 73,587 225,227 181,823 39,361 901,206 
FICO score 660-69988,346 146,789 143,213 88,989 91,062 316,577 263,818 63,156 1,201,950 
FICO score 620-65921,847 73,365 40,104 28,207 36,391 140,682 87,205 39,707 467,508 
FICO score less than 620 357,712 48,100 53,006 61,476 97,995 323,215 99,561 57,026 1,098,091 
Total$1,458,649 $1,801,575 $1,233,928 $1,022,933 $1,139,118 $3,121,829 $2,141,324 $408,513 $12,327,869 
(a) $22.7 million of HELOC loans were converted from revolving to term in 2020.

The following table reflects the amortized cost basis by year of origination and refreshed FICO scores for credit card and other loans as of September 30, 2020.
 Credit Card and Other
(Dollars in  thousands)20202019201820172016Prior to 2016Revolving
Loans		Revolving
Loans converted
to term loans (a)		Total
FICO score 740 or greater$45,014 $60,629 $67,379 $44,445 $27,990 $129,793 $143,754 $5,263 $524,267 
FICO score 720-7396,617 8,673 10,856 9,913 9,051 29,740 90,623 1,630 167,103 
FICO score 700-7196,172 9,215 9,903 8,635 4,567 42,102 41,039 1,731 123,364 
FICO score 660-69927,173 14,206 16,352 11,032 10,600 53,772 54,963 3,737 191,835 
FICO score 620-6593,526 5,559 7,990 5,761 12,823 29,168 19,492 1,406 85,725 
FICO score less than 620 22,715 7,406 16,024 10,876 9,432 28,960 22,835 1,516 119,764 
Total$111,217 $105,688 $128,504 $90,662 $74,463 $313,535 $372,706 $15,283 $1,212,058 
(a) $5.3 million of other consumer loans were converted from revolving to term in 2020.
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)HELOCR/E Installment Loans (b)
FICO score 740 or greater62.0 %71.9 %
FICO score 720-7398.6 8.3 
FICO score 700-7197.6 6.3 
FICO score 660-69910.8 8.1 
FICO score 620-6594.7 2.8 
FICO score less than 620 (a)6.3 2.6 
Total100.0 %100.0 %
(a)    For this group, a majority of the loan balances had FICO scores at the time of the origination that exceeded 620 but have since deteriorated as the loans have seasoned.

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 September 30, 2020:
 AccruingNon-Accruing 
(Dollars in thousands)Current30-89
Days
Past Due		90+
Days
Past Due		Total
Accruing		Current30-89
Days
Past Due		90+
Days
Past Due		Total
Non-
Accruing		Total
Loans
Commercial, financial, and industrial:
C&I (a) (b)$27,815,798 $19,892 $149 $27,835,839 $126,674 $25,327 $60,809 $212,810 $28,048,649 
Loans to mortgage companies5,607,068 — — 5,607,068 — — — — 5,607,068 
Total commercial and industrial33,422,866 19,892 149 33,442,907 126,674 25,327 60,809 212,810 33,655,717 
Commercial real estate:
CRE12,444,693 15,133 — 12,459,826 42,517 2,531 6,013 51,061 12,510,887 
Consumer real estate:
HELOC2,467,907 11,884 6,892 2,486,683 47,101 4,628 11,425 63,154 2,549,837 
R/E installment loans9,631,513 22,922 6,663 9,661,098 54,606 3,394 58,934 116,934 9,778,032 
Total consumer real estate12,099,420 34,806 13,555 12,147,781 101,707 8,022 70,359 180,088 12,327,869 
Credit card and other:
Credit card267,880 1,513 789 270,182 242 38 49 329 270,511 
Other936,179 2,698 122 938,999 963 682 903 2,548 941,547 
Total credit card and other1,204,059 4,211 911 1,209,181 1,205 720 952 2,877 1,212,058 
Total loans and leases, net of unearned income$59,171,038 $74,042 $14,615 $59,259,695 $272,103 $36,600 $138,133 $446,836 $59,706,531 

(a) $125.7 million of C&I loans are nonaccrual loans that have been specifically reviewed for impairment with no related allowance.
(b) C&I loans include $209.4 million in TRUPs loans, which are presented net of an amortizing discount of $18.2 million.
The following table reflects accruing and non-accruing loans by class on December 31, 2019:
 AccruingNon-Accruing 
(Dollars in thousands)Current30-89
Days
Past Due		90+
Days
Past Due		Total
Accruing		Current30-89
Days
Past Due		90+
Days
Past Due		Total
Non-
Accruing		Total
Loans
Commercial, financial, and industrial:
C&I (a)$15,532,579 $7,155 $237 $15,539,971 $36,564 $14,385 $23,363 $74,312 $15,614,283 
Loans to mortgage companies4,410,883 — — 4,410,883 — — — — 4,410,883 
Purchased credit-impaired loans23,840 287 1,798 25,925 — — — — 25,925 
Total commercial and industrial19,967,302 7,442 2,035 19,976,779 36,564 14,385 23,363 74,312 20,051,091 
Commercial real estate:
CRE4,329,531 686 — 4,330,217 — 485 1,340 1,825 4,332,042 
Purchased credit-impaired loans4,752 128 95 4,975 — — — — 4,975 
Total commercial real estate4,334,283 814 95 4,335,192 — 485 1,340 1,825 4,337,017 
Consumer real estate:
HELOC1,217,344 9,156 5,669 1,232,169 43,007 4,227 7,472 54,706 1,286,875 
R/E installment loans4,812,446 12,894 9,170 4,834,510 20,710 1,076 9,202 30,988 4,865,498 
Purchased credit-impaired loans18,720 2,770 3,276 24,766 — — — — 24,766 
Total consumer real estate6,048,510 24,820 18,115 6,091,445 63,717 5,303 16,674 85,694 6,177,139 
Credit card and other:
Credit card198,917 1,076 1,178 201,171 — — — — 201,171 
Other291,700 1,802 337 293,839 101 44 189 334 294,173 
Purchased credit-impaired loans323 98 99 520 — — — — 520 
Total credit card and other490,940 2,976 1,614 495,530 101 44 189 334 495,864 
Total loans and leases, 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 
Certain previously reported amounts have been reclassified to agree with current presentation.
(a)     C&I loans include $218.3 million in TRUPs loans, which are presented net of an amortizing discount of $19.1 million.

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 September 30, 2020, FHN had C&I loans with amortized cost of approximately $247.7 million that was based on the value of underlying collateral. The collateral for these loans generally consists of business assets including land, buildings, equipment and financial assets.
During the three and nine months ended September 30, 2020, respectively, FHN recognized charge-offs of approximately $18.1 million and $31.1 million on these loans related to reductions in estimated collateral values.

Consumer HELOC and installment loans with amortized cost based on the value of underlying real estate collateral were approximately $9.7 million and $26.2 million, respectively, as of September 30, 2020. Charge-offs during the three and nine months ended September 30, 2020 were not significant for either portfolio segment.

Troubled Debt Restructurings
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. Extensions and modifications to loans are made in accordance with internal policies and guidelines which conform to regulatory guidance. Each
occurrence is unique to the borrower and is evaluated separately.
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 a new loan with similar risk), reduction or forgiveness of accrued interest, or principal forgiveness. The assessments of whether a borrower is experiencing (or is likely to experience) financial difficulty, and whether a concession has been granted, are subjective in nature and management’s judgment is required when determining whether a modification is classified as a TDR. In accordance with regulatory guidance, loans that were
modified during the three and nine months ended September 30, 2020 whose modifications met criteria outlined in either the CARES Act or revised intreragency statement were not accounted for as a TDR and have been excluded from the disclosures below.
On September 30, 2020 and December 31, 2019, FHN had $321.4 and $206.3 million of portfolio loans classified as TDRs, respectively. For TDRs in the loan portfolio, FHN had loan loss reserves of $12.6 million, or 4% as of September 30, 2020, and $19.7 million, or 10% as of December 31, 2019. Additionally, $44.1 million and $51.1 million of loans held for sale as of September 30, 2020 and December 31, 2019, respectively, were classified as TDRs.
The following tables present the end of period balance for loans modified in a TDR during the periods indicated:
 Three Months Ended September 30, 2020Nine Months Ended September 30, 2020
(Dollars in thousands)NumberPre-Modification
Outstanding
Recorded Investment		Post-Modification
Outstanding
Recorded Investment		NumberPre-Modification
Outstanding
Recorded Investment		Post-Modification
Outstanding
Recorded Investment
Commercial, financial, and industrial:
C&I83 $130,281 $119,591 87 $140,857 $128,723 
Total commercial and industrial83 130,281 119,591 87 140,857 128,723 
Commercial real estate:
 CRE14 11,848 11,825 14 11,848 11,825 
Total commercial real estate14 11,848 11,825 14 11,848 11,825 
Consumer real estate:
HELOC35 2,623 2,584 47 3,687 3,626 
R/E installment loans44 6,075 6,022 94 15,379 15,260 
Total consumer real estate79 8,698 8,606 141 19,066 18,886 
Credit card and other10 80 76 50 334 313 
Total troubled debt restructurings186 $150,907 $140,098 292 $172,105 $159,747 
 Three Months Ended September 30, 2019Nine Months Ended September 30, 2019
(Dollars in thousands)NumberPre-Modification
Outstanding
Recorded Investment		Post-Modification
Outstanding
Recorded Investment		NumberPre-Modification
Outstanding
Recorded Investment		Post-Modification
Outstanding
Recorded Investment
Commercial, financial, and industrial:
C&I1 $62 $59 4 $14,179 $14,101 
Total commercial and industrial1 62 59 4 14,179 14,101 
Consumer real estate:
HELOC13 1,638 1,631 57 7,013 6,950 
R/E installment loans16 1,771 1,854 82 10,730 10,790 
Total consumer real estate29 3,409 3,485 139 17,743 17,740 
Credit card and other35 134 126 68 317 300 
Total troubled debt restructurings65 $3,605 $3,670 211 $32,239 $32,141 
The following tables present TDRs which re-defaulted during the three and nine months ended September 30, 2020 and 2019, and as to which the modification occurred 12 months or less prior to the re-default. For purposes of this disclosure, FHN generally defines payment default as 30 or more days past due.
 Three Months Ended September 30, 2020Nine Months Ended September 30, 2020
(Dollars in thousands)NumberRecorded
Investment		NumberRecorded
Investment
Commercial (C&I):
General C&I— $— — $— 
Total commercial (C&I)— — — — 
Consumer real estate:
HELOC1 32 8 34 
R/E installment loans6 839 16 841 
Total consumer real estate7 871 24 875 
Credit card & other7 24 21 24 
Total troubled debt restructurings14 $895 45 $899 

 Three Months Ended September 30, 2019Nine Months Ended September 30, 2019
(Dollars in thousands)NumberRecorded
Investment		NumberRecorded
Investment
Commercial (C&I):
General C&I— $— — $— 
Total commercial (C&I)— — — — 
Consumer real estate:
HELOC2 99 4 198 
R/E installment loans1 7 2 45 
Total consumer real estate3 106 6 243 
Credit card & other8 45 23 77 
Total troubled debt restructurings11 $151 29 $320 

Loans Acquired with Deteriorated Credit Quality

Upon FHN's adoption of CECL, purchased credit deteriorated ("PCD") loans are recorded at an initial amortized cost, which is the sum of the purchase price and the estimated credit losses recorded in the ALLL. Subsequent to this initial recognition, PCD loans are accounted for under the same methodology as non-PCD loans.
As discussed in Note 2, on July 1, 2020, FHN and IBKC closed their merger-of-equals transaction. On July 17, 2020, First Horizon Bank completed its purchase of 30 branches from Truist Bank. In connection with these transactions, FHN acquired approximately $25.9 billion in loans from IBKC and purchased approximately $423.4 million of branch loans from Truist Bank. For PCD loans acquired or purchased during the third quarter of 2020, a reconciliation of the unpaid principal balance, contractual cash flow owed to FHN at acquisition date, and purchase price is presented in the following table.

Three Months Ended September 30, 2020
(Dollars in thousands)C&ICREConsumer Real EstateCredit Card and OtherTotal
Par value (UPB)$4,074,927 $6,435,556 $2,393,677 $192,980 $13,097,140 
Allowance for Loan Losses (a)(137,702)(100,123)(44,141)(4,845)(286,811)
(Discount) Premium(64,328)3,485 (31,764)(3)(92,610)
Purchase Price$3,872,897 $6,338,918 $2,317,772 $188,132 $12,717,719 

Purchased Credit-Impaired Loans

Before the adoption of CECL on January 1, 2020, FHN applied the guidance in ASC 310-30 to loans that were identified as PCI loans at the acquisition date. 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 
(a)     Represents the removal of accretable difference for the remaining loans in a pool which is now in a recovery state.
(b)     Includes changes in the accretable yield due to both transfers from the nonaccretable difference and the impact of changes in the expected timing of the cash flows.

At December 31, 2019, the ALLL related to PCI loans was $2.0 million. Net charge-offs related to PCI loans during 2019 were $5.8 million. The loan loss provision expense related to PCI loans during 2019 was $1.3 million.

The following table reflects the outstanding principal balance and carrying amounts of the acquired PCI loans as of December 31, 2019:
 December 31, 2019
(Dollars in thousands)Carrying valueUnpaid balance
Commercial, financial and industrial$24,973 $25,938 
Commercial real estate5,078 5,466 
Consumer real estate23,681 26,245 
Credit card and other489 567 
Total$54,221 $58,216 
Impaired Loans
The following tables provide additional disclosures previously required by ASC Topic 310 related to FHN's December 31, 2019 balances. Information on impaired loans at December 31, 2019 was as follows:
 December 31, 2019
(Dollars in thousands)Recorded
Investment		Unpaid
Principal
Balance		Related
Allowance
Impaired loans with no related allowance recorded:
Commercial:
C&I$52,672 $63,602 $— 
CRE1,563 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:
C&I$29,766 $31,536 $6,196 
CRE— — — 
Total$29,766 $31,536 $6,196 
Consumer:
HELOC$55,522 $59,122 $7,016 
R/E installment loans94,191 104,121 12,282 
Credit card & other653 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 
(a)All discharged bankruptcy loans are charged down to an estimate of net realizable value and do not carry any allowance.
Three Months Ended September 30,Nine Months Ended September 30
 20192019
(Dollars in thousands)Average
Recorded
Investment		Interest
Income
Recognized		Average
Recorded
Investment		Interest
Income
Recognized
Impaired loans with no related allowance recorded:
Commercial:
   C&I$64,558 $173 $62,553 $530 
Loans to mortgage companies18,628 — 12,419 — 
   CRE1,690 3 1,576 30 
   Total$84,876 $176 $76,548 $560 
Consumer:
   HELOC (a)$6,495 $— $6,852 $— 
   R/E installment loans (a)8,147 — 8,564 — 
   Total$14,642 $— $15,416 $— 
Impaired loans with related allowance recorded:
Commercial:
   C&I$14,620 $4 $10,892 $4 
   TRUPS2,750 — 2,806 — 
   CRE169 — 294 9 
   Total$17,539 $4 $13,992 $13 
Consumer:
   HELOC$60,312 $449 $62,650 $1,475 
   R/E installment loans102,576 787 106,175 2,424 
   Credit card & other710 4 697 13 
   Total$163,598 $1,240 $169,522 $3,912 
Total commercial$102,415 $180 $90,540 $573 
Total consumer$178,240 $1,240 $184,938 $3,912 
Total impaired loans$280,655 $1,420 $275,478 $4,485 
(a)All discharged bankruptcy loans are charged down to an estimate of net realizable value and do not carry any allowance.