Term Borrowings

12 Months Ended

Dec. 31, 2020

The following table presents information pertaining to term borrowings on December 31,:


(Dollars in millions)	2020		2019
First Horizon Bank:
Subordinated notes (a)
Maturity date – May 1, 2030 - 5.75% on December 31, 2020	$	447	$	—
Other collateralized borrowings - Maturity date – December 22, 2037
0.52% on December 31, 2020 and 2.19% on December 31, 2019 (b)	82		81
Other collateralized borrowings - SBA loans (c)	15		22
First Horizon Corporation:
Senior notes
Maturity date – December 15, 2020 – 3.50% on December 31, 2019 (d)	—		496
Maturity date – May 26, 2023 - 3.55% on December 31, 2020	447		—
Maturity date – May 26, 2025 - 4.00% on December 31, 2020	348		—
Junior subordinated debentures (e)
Maturity date - July 31, 2031 - 3.51% on December 31, 2020	7		—
Maturity date - November 15, 2032 - 3.50% on December 31, 2020	9		—
Maturity date - March 26, 2033 - 3.40% on December 31, 2020	5		—
Maturity date - June 17, 2033 - 3.40% on December 31, 2020	9		—
Maturity date - March 17, 2034 - 3.02% on December 31, 2020	6		—
Maturity date - September 20, 2034 - 2.25% on December 31, 2020	8		—
Maturity date - June 28, 2035 - 1.90% on December 31, 2020 and 3.57% on December 31, 2019	3		3
Maturity date - December 15, 2035 - 1.59% on December 31, 2020 and 3.26% on December 31, 2019	18		18
Maturity date - March 15, 2036 - 1.62% on December 31, 2020 and 3.29% on December 31, 2019	9		9
Maturity date - March 15, 2036 - 1.76% on December 31, 2020 and 3.43% on December 31, 2019	12		12
Maturity date - June 30, 2036 - 1.56% on December 31, 2020 and 3.28% on December 31, 2019	27		26
Maturity date - July 7, 2036 - 1.79% on December 31, 2020 and 3.54% on December 31, 2019	18		18
Maturity date - October 7, 2036 - 1.88% on December 31, 2020	6		—
Maturity date - December 30, 2036 - 1.84% on December 31, 2020	10		—
Maturity date - June 15, 2037 - 1.87% on December 31, 2020 and 3.54% on December 31, 2019	51		51
Maturity date - September 6, 2037 - 1.66% on December 31, 2020 and 3.32% on December 31, 2019	9		9
Maturity date - September 15, 2037 - 1.65% on December 31, 2020	7		—
Maturity date - December 15, 2037 - 2.76% on December 31, 2020	10		—
Maturity date - December 15, 2037 - 2.97% on December 31, 2020	10		—
Maturity date - June 15, 2038 - 3.72% on December 31, 2020	6		—
Notes payable - New market tax credit investments, 7 to 35 year term, 1.27% to 4.95% on December 31, 2020	45		—
FT Real Estate Securities Company, Inc.:
Cumulative preferred stock (f)
Maturity date – March 31, 2031 – 9.50%	46		46






Total	$	1,670	$	791

(a)Qualifies for Tier 2 capital under the risk-based capital guidelines for First Horizon Bank as well as First Horizon Corporation, up to certain limits for minority interest capital instruments.

(b)Secured by trust preferred loans.

(c)Collateralized borrowings associated with SBA loan sales that did not meet sales criteria. The loans have remaining terms of 2 to 24 years. These borrowings had a weighted average interest rate of 3.90% and 3.95% on December 31, 2020 and 2019, respectively.

(d)Early redeemed on November 15, 2020. Changes in the fair value of debt attributable to interest rate risk are hedged. Refer to Note 22 – Derivatives.

(e)Acquired in conjunction with the acquisitions of CBF and merger with IBKC. A portion qualifies for Tier 2 capital under the risk-based capital guidelines.

(f)In 2020, a portion qualifies for Tier 2 capital under the risk-based capital guidelines for both First Horizon Bank and First Horizon Corporation. In 2019, only a portion qualified as Tier 2 capital.

Annual principal repayment requirements as of December 31, 2020 are as follows:


(Dollars in millions)
2021	$	—
2022	—
2023	450
2024	—
2025 and after	1,274

In conjunction with its transactions, FHN obtained junior subordinated debentures, each of which is held by a wholly-owned trust that has issued trust preferred securities to external investors and loaned the funds to FHN as junior subordinated debt. The book value for each issuance represents the purchase accounting fair value as of the closing date less accumulated amortization of the associated discount, as applicable. Through various contractual arrangements FHN assumed a full and unconditional

guarantee for each trust’s obligations with respect to the securities. While the maturity dates are typically 30 years from the original issuance date, FHN has the option to redeem each of the junior subordinated debentures at par on any future interest payment date, which would trigger redemption of the related trust preferred securities. A portion of FHN's junior subordinated notes qualify as Tier 2 capital under the risk-based capital guidelines.