FHN has four business segments: regional banking, fixed income, corporate, and non-strategic. The regional banking segment offers financial products and services, including traditional lending and deposit taking, to consumer and commercial customers in the southern and southeastern U.S. and other selected markets. Regional banking also provides investments, wealth management, financial planning, trust services and asset management, mortgage banking, title, credit card, and cash management services. Additionally, the regional banking segment includes correspondent banking which provides credit, depository, and other banking related services to other financial institutions nationally. The fixed income segment consists of fixed income securities sales, trading, underwriting, and strategies for institutional clients in the U.S. and abroad, as well as loan sales, portfolio advisory services, and derivative sales. The corporate segment consists of unallocated corporate expenses, expense on subordinated debt issuances, bank-owned life insurance, unallocated interest income associated with excess equity, net impact of raising incremental capital, revenue and expense associated with deferred compensation plans, funds management, tax credit investment activities, derivative

valuation adjustments related to prior sales of Visa Class B shares, gain (loss) on extinguishment of debt, acquisition- and integration-related costs, expenses associated with rebranding initiatives, and various charges related to restructuring, repositioning, and efficiency efforts. The non-strategic segment consists of run-off consumer lending activities, pre-2009 mortgage banking elements, and the associated ancillary revenues and expenses related to these businesses. Non-strategic also includes the wind-down trust preferred loan portfolio and exited businesses.

Periodically, FHN adapts its segments to reflect managerial or strategic changes. FHN may also modify its methodology of allocating expenses and equity among segments which could change historical segment results. Business segment revenue, expense, asset, and equity levels reflect those which are specifically identifiable or which are allocated based on an internal allocation method. Because the allocations are based on internally developed assignments and allocations, to an extent they are subjective. Generally, all assignments and allocations have been consistently applied for all periods presented.

The following table reflects the amounts of consolidated revenue, expense, tax, and average assets for each segment for the three and nine months ended September 30:


	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands)	2020		2019		2020		2019
Consolidated
Net interest income	$	532,365	$	300,676	$	1,140,511	$	898,794
Provision for credit losses (a)	227,000		14,366		502,388		36,273
Noninterest income	822,923		171,735		1,203,948		470,773
Noninterest expense	587,040		308,306		1,210,139		904,883
Income before income taxes	541,248		149,739		631,932		428,411
Provision for income taxes	2,210		35,796		19,757		97,321
Net income	$	539,038	$	113,943	$	612,175	$	331,090
Average assets	$	81,683,111	$	41,940,901	$	57,810,478	$	41,359,574

(a)Increase in provision expense for the three and nine months ended September 30, 2020 is primarily due to provision related to non-PCD loans acquired in the IBKC merger and Truist branch acquisition and the economic forecast attributable to the COVID-19 pandemic.


	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands)	2020		2019		2020		2019
Regional Banking
Net interest income	$	583,907	$	302,467	$	1,233,654	$	885,932
Provision for credit losses	227,326		19,839		501,453		50,967
Noninterest income	172,457		85,930		333,669		240,555
Noninterest expense	373,680		193,956		768,870		586,697
Income before income taxes	155,358		174,602		297,000		488,823
Provision for income taxes	34,744		41,795		65,497		115,266
Net income	$	120,614	$	132,807	$	231,503	$	373,557
Average assets	$	64,371,210	$	31,632,768	$	44,170,906	$	30,231,372
Fixed Income
Net interest income	$	11,632	$	5,309	$	36,088	$	18,809
Noninterest income	110,783		77,808		319,741		197,238
Noninterest expense	67,395		67,582		231,488		173,656
Income before income taxes	55,020		15,535		124,341		42,391
Provision for income taxes	13,456		3,707		30,236		10,001
Net income	$	41,564	$	11,828	$	94,105	$	32,390
Average assets	$	3,002,282	$	2,882,478	$	3,341,255	$	2,952,925
Corporate
Net interest income (expense)	$	(69,187)	$	(13,252)	$	(145,847)	$	(28,136)
Noninterest income	539,668		7,359		548,891		30,112
Noninterest expense	142,894		42,297		199,461		139,052
Income (loss) before income taxes	327,587		(48,190)		203,583		(137,076)
Provision (benefit) for income taxes	(46,785)		(11,632)		(77,690)		(36,416)
Net income (loss)	$	374,372	$	(36,558)	$	281,273	$	(100,660)
Average assets	$	13,595,544	$	6,434,633	$	9,527,471	$	7,098,500
Non-Strategic
Net interest income	$	6,013	$	6,152	$	16,616	$	22,189
Provision/(provision credit) for loan losses	(326)		(5,473)		935		(14,694)
Noninterest income	15		638		1,647		2,868
Noninterest expense	3,071		4,471		10,320		5,478
Income before income taxes	3,283		7,792		7,008		34,273
Provision for income taxes	795		1,926		1,714		8,470
Net income	$	2,488	$	5,866	$	5,294	$	25,803
Average assets	$	714,075	$	991,022	$	770,846	$	1,076,777

Certain previously reported amounts have been reclassified to agree with current presentation.

The following tables reflect a disaggregation of FHN’s noninterest income by major product line and reportable segment for the three months ended September 30, 2020 and 2019:


	Three months ended September 30, 2020
(Dollars in thousands)	Regional Banking		Fixed Income		Corporate		Non-Strategic		Consolidated
Fixed income (a)	380		110,563		—		—		110,943
Mortgage banking and title income	65,569		—		23		(89)		65,503
Deposit transactions and cash management	40,500		—		1,528		28		42,056
Brokerage, management fees and commissions	19,595		—		(1,704)		—		17,891
Trust services and investment management	14,599		—		(2,858)		—		11,741
Bankcard income	10,150		—		277		30		10,457
Securities gains (losses), net (b)	—		—		(1,170)		—		(1,170)
Purchase accounting gain	—		—		532,150		—		532,150
Other income (c)	21,664		220		11,422		46		33,352
Total noninterest income	$	172,457	$	110,783	$	539,668	$	15	$	822,923

(a)Includes $9.9 million of underwriting, portfolio advisory, and other noninterest income in scope of Accounting Standards Codification ("ASC") 606, "Revenue From Contracts With Customers."

(b)Represents noninterest income excluded from the scope of ASC 606. Amount is presented for informational purposes to reconcile total noninterest income.

(c)Includes other service charges, ATM and interchange fees, electronic banking fees, and insurance commissions in scope of ASC 606.


	Three months ended September 30, 2019
(Dollars in thousands)	Regional Banking		Fixed Income		Corporate		Non- Strategic		Consolidated

Fixed income (a)	57		77,588		—		—		77,645
Mortgage banking and title income	1,643		—		—		376		2,019
Deposit transactions and cash management	32,624		—		1,721		34		34,379
Brokerage, management fees and commissions	14,157		—		—		—		14,157
Trust services and investment management	7,190		—		(27)		—		7,163
Bankcard income	7,030		11		63		(87)		7,017
Securities gains (losses), net (b)	—		—		97		—		97

Other income (c)	23,229		209		5,505		315		29,258
Total noninterest income	$	85,930	$	77,808	$	7,359	$	638	$	171,735

Certain previously reported amounts have been reclassified to agree with current presentation.

(a)Includes $9.2 million of underwriting, portfolio advisory, and other noninterest income in scope of Accounting Standards

Codification ("ASC") 606, "Revenue From Contracts With Customers."

(b)Represents noninterest income excluded from the scope of ASC 606. Amount is presented for informational purposes to reconcile

total noninterest income.

(c)Includes other service charges, ATM and interchange fees, electronic banking fees, and insurance commissions in scope of ASC

606.

The following tables reflect a disaggregation of FHN’s noninterest income by major product line and reportable segment for the nine months ended September 30, 2020 and 2019:


	Nine Months Ended September 30, 2020
(Dollars in thousands)	Regional Banking		Fixed Income		Corporate		Non-Strategic		Consolidated
Fixed income (a)	582		318,417		—		—		318,999
Deposit transactions and cash management	98,906		—		4,131		96		103,133
Mortgage banking and title income	71,168		—		23		881		72,072
Brokerage, management fees and commissions	48,799		—		(1,703)		—		47,096
Trust services and investment management	29,562		—		(2,893)		—		26,669
Bankcard income	23,853		—		421		88		24,362
Securities gains (losses), net (b)	—		—		(2,638)		—		(2,638)
Purchase accounting gain	—		—		532,150		—		532,150
Other income (c)(d)	60,799		1,324		19,400		582		82,105
Total noninterest income	$	333,669	$	319,741	$	548,891	$	1,647	$	1,203,948

(a)Includes $28.6 million of underwriting, portfolio advisory, and other noninterest income in scope of Accounting Standards Codification ("ASC") 606, "Revenue From Contracts With Customers."

(b)Represents noninterest income excluded from the scope of ASC 606. Amount is presented for informational purposes to reconcile total noninterest income.

(c)Includes other service charges, ATM and interchange fees, electronic banking fees, and insurance commissions in scope of ASC 606.

(d)Corporate balance includes negative deferred compensation income driven by equity market valuations.


	Nine Months Ended September 30, 2019
(Dollars in thousands)	Regional Banking		Fixed Income		Corporate		Non- Strategic		Consolidated

Fixed income (a)	120		196,582		—		1,106		197,808
Mortgage banking and title income	5,119		—		—		1,358		6,477
Deposit transactions and cash management	93,316		4		4,956		98		98,374
Brokerage, management fees and commissions	40,910		—		—		—		40,910
Trust services and investment management	22,148		—		(71)		—		22,077
Bankcard income	20,670		11		185		(542)		20,324
Securities gains (losses), net (b)	—		—		177		—		177
Purchase accounting gain	—		—		—		—		—
Other income (c)(d)	58,272		641		24,865		848		84,626
Total noninterest income	$	240,555	$	197,238	$	30,112	$	2,868	$	470,773

Certain previously reported amounts have been reclassified to agree with current presentation.

(a)Includes $23.6 million of underwriting, portfolio advisory, and other noninterest income in scope of Accounting Standards

Codification ("ASC") 606, "Revenue From Contracts With Customers."

(b)Represents noninterest income excluded from the scope of ASC 606. Amount is presented for informational purposes to reconcile

total noninterest income.

(c)Includes other service charges, ATM and interchange fees, electronic banking fees, and insurance commissions in scope of ASC

606.