Variable Interest Entities (Tables)

12 Months Ended

Dec. 31, 2020

Variable Interest Entities [Abstract]

Summary Of VIEs Consolidated By FHN

The following table summarizes the carrying value of assets and liabilities associated with rabbi trusts used for deferred compensation plans which are consolidated by FHN as of December 31, 2020 and 2019:

	December 31, 2020			December 31, 2019
(Dollars in millions)
Assets:
Other assets		$	164		$	92
Total assets		$	164		$	92
Liabilities:
Other liabilities		$	142		$	71
Total liabilities		$	142		$	71

Summary of the Impact of Qualifying LIHTC Investments

The following table summarizes the impact to Income tax expense on the Consolidated Statements of Income for the years ended December 31, 2020, 2019 and 2018 for LIHTC investments accounted for under the proportional amortization method.

(Dollars in millions)	2020		2019		2018
Income tax expense (benefit):
Amortization of qualifying LIHTC investments	$	23	$	15	$	11
Low income housing tax credits	(22)		(14)		(10)
Other tax benefits related to qualifying LIHTC investments	(10)		(6)		(7)

Summary Of VIEs Not Consolidated By FHN

The following table summarizes FHN’s nonconsolidated VIEs as of December 31, 2020:

(Dollars in millions)	Maximum Loss Exposure		Liability Recognized		Classification
Type:
Low income housing partnerships	$	338	$	132	(a)
Other tax credit investments (b)	64		42		Other assets
Small issuer trust preferred holdings (c)	210		—		Loans and leases
On-balance sheet trust preferred securitization	32		82		(d)
Holdings of agency mortgage-backed securities (c)	7,063		—		(e)
Commercial loan troubled debt restructurings (f)	186		—		Loans and leases
Proprietary trust preferred issuances (g)	—		287		Term borrowings

(a) Maximum loss exposure represents $206 million of current investments and $132 million of accrued contractual funding commitments. Accrued funding commitments represent unconditional contractual obligations for future funding events, and are recognized in Other liabilities. FHN currently expects to be required to fund these accrued commitments by the end of 2024.

(b) Maximum loss exposure represents the value of current investments.

(c) Maximum loss exposure represents the value of current investments. A liability is not recognized as FHN is solely a holder of the trusts’ securities.

(d) Includes $112 million classified as Loans and leases, and $2 million classified as Trading securities which are offset by $82 million classified as Term borrowings.

(e) Includes $0.8 billion classified as Trading securities and $6.2 billion classified as Securities available for sale.

(f) Maximum loss exposure represents $176 million of current receivables and $10 million of contractual funding commitments on loans related to commercial borrowers involved in a troubled debt restructuring.

(g) No exposure to loss due to nature of FHN's involvement.

The following table summarizes FHN’s nonconsolidated VIEs as of December 31, 2019:

(Dollars in millions)	Maximum Loss Exposure		Liability Recognized		Classification
Type:
Low income housing partnerships	$	238	$	136	(a)
Other tax credit investments (b) (c)	6		—		Other assets
Small issuer trust preferred holdings (d)	238		—		Loans and leases
On-balance sheet trust preferred securitization	33		81		(e)
Proprietary residential mortgage securitizations	1		—		Trading securities
Holdings of agency mortgage-backed securities (d)	4,538		—		(f)
Commercial loan troubled debt restructurings (g)	45		—		Loans and leases
Sale-leaseback transaction	18		—		(h)
Proprietary trust preferred issuances (i)	—		167		Term borrowings

(a)Maximum loss exposure represents $101 million of current investments and $137 million of accrued contractual funding commitments. Accrued funding commitments represent unconditional contractual obligations for future funding events, and are also recognized in Other liabilities.

(b)A liability is not recognized as investments are written down over the life of the related tax credit.

(c)Maximum loss exposure represents current investment balance. As of December 31, 2019, there were no investments funded through loans from community development enterprises.

(d)Maximum loss exposure represents the value of current investments. A liability is not recognized as FHN is solely a holder of the trusts’ securities.

(e)Includes $112 million classified as Loans and leases and $2 million classified as Trading securities, which are offset by $81 million classified as Term borrowings.

(f)Includes $0.5 billion classified as Trading securities and $4.0 billion classified as Securities available for sale.

(g)Maximum loss exposure represents $43 million of current receivables and $2 million of contractual funding commitments on loans related to commercial borrowers involved in a troubled debt restructuring.

(h)Maximum loss exposure represents the current loan balance plus additional funding commitments less amounts received from the buyer-lessor.

(i)No exposure to loss due to nature of FHN's involvement.