Fair Value of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis

The following tables present the balances of assets and liabilities measured at fair value on a recurring basis as of June 30, 2021 and December 31, 2020:

	June 30, 2021
(Dollars in millions)	Level 1		Level 2		Level 3		Total
Trading securities:
U.S. treasuries	$	—	$	43	$	—	$	43
Government agency issued MBS	—		411		—		411
Government agency issued CMO	—		214		—		214
Other U.S. government agencies	—		130		—		130
States and municipalities	—		18		—		18
Corporate and other debt	—		219		—		219
Total trading securities	—		1,035		—		1,035
Loans held for sale (elected fair value)	—		352		25		377
Securities available for sale:
U.S. treasuries	—		607		—		607
Government agency issued MBS	—		4,167		—		4,167
Government agency issued CMO	—		2,323		—		2,323
Other U.S. government agencies	—		743		—		743
States and municipalities	—		518		—		518
Interest-only strips (elected fair value)	—		—		30		30
Total securities available for sale	—		8,358		30		8,388
Other assets:
Deferred compensation mutual funds	122		—		—		122
Equity, mutual funds, and other	29		—		—		29
Derivatives, forwards and futures	27		—		—		27
Derivatives, interest rate contracts	—		451		—		451
Derivatives, other	—		2		—		2
Total other assets	178		453		—		631
Total assets	$	178	$	10,198	$	55	$	10,431
Trading liabilities:
U.S. treasuries	$	—	$	472	$	—	$	472
Corporate and other debt	—		59		—		59
Total trading liabilities	—		531		—		531
Other liabilities:
Derivatives, forwards and futures	26		—		—		26
Derivatives, interest rate contracts	—		73		—		73
Derivatives, other	—		1		18		19
Total other liabilities	26		74		18		118
Total liabilities	$	26	$	605	$	18	$	649

	December 31, 2020
(Dollars in millions)	Level 1		Level 2		Level 3		Total
Trading securities:
U.S. treasuries	$	—	$	81	$	—	$	81
Government agency issued MBS	—		633		—		633
Government agency issued CMO	—		212		—		212
Other U.S. government agencies	—		62		—		62
States and municipalities	—		7		—		7
Corporate and other debt	—		181		—		181
Total trading securities	—		1,176		—		1,176
Loans held for sale (elected fair value)	—		393		12		405
Loans held for investment (elected fair value)	—		—		16		16
Securities available for sale:
U.S. treasuries	—		613		—		613
Government agency issued MBS	—		3,812		—		3,812
Government agency issued CMO	—		2,406		—		2,406
Other U.S. government agencies	—		684		—		684
States and municipalities	—		460		—		460
Corporate and other debt	—		40		—		40
Interest-only strips (elected fair value)	—		—		32		32
Total securities available for sale	—		8,015		32		8,047
Other assets:
Deferred compensation mutual funds	118		—		—		118
Equity, mutual funds, and other	25		—		—		25
Derivatives, forwards and futures	63		—		—		63
Derivatives, interest rate contracts	—		702		—		702
Derivatives, other	—		4		—		4
Total other assets	206		706		—		912
Total assets	$	206	$	10,290	$	60	$	10,556
Trading liabilities:
U.S. treasuries	$	—	$	307	$	—	$	307
Government agency issued MBS	—		3		—		3
Corporates and other debt	—		43		—		43
Total trading liabilities	—		353		—		353
Other liabilities:
Derivatives, forwards and futures	71		—		—		71
Derivatives, interest rate contracts	—		60		—		60
Derivatives, other	—		4		14		18
Total other liabilities	71		64		14		149
Total liabilities	$	71	$	417	$	14	$	502

Summary Of Changes In Level 3 Assets And Liabilities Measured At Fair Value

The changes in Level 3 assets and liabilities measured at fair value for the three months ended June 30, 2021 and 2020 on a recurring basis are summarized as follows:

	Three Months Ended June 30, 2021
(Dollars in millions)	Interest- only strips- AFS			Loans held for sale			Loans held for investment			Net  derivative liabilities
Balance on April 1, 2021	$	22		$	12		$	17		$	(21)
Total net gains (losses) included in net income	(1)			1			—			—
Purchases	—			5			—			—
Sales	(6)			(10)			—			—
Settlements	—			(1)			—			3
Net transfers into (out of) Level 3	15		(b)	18		(e)	(17)		(e)	—
Balance on June 30, 2021	$	30		$	25		$	—		$	(18)
Net unrealized gains (losses) included in net income	$	(1)	(c)	$	1	(a)	$	—		$	—	(d)

	Three Months Ended June 30, 2020
(Dollars in millions)	Trading securities			Interest-only-strips-AFS			Loans held for sale			Net  derivative liabilities
Balance on April 1, 2020	$	1		$	23		$	14		$	(21)
Total net gains (losses) included in net income	—			(1)			—			—
Purchases	—			—			—			—
Sales	—			—			—			—
Settlements	—			—			(1)			2
Net transfers into (out of) Level 3	—			3		(b)	—			—
Balance on June 30, 2020	$	1		$	25		$	13		$	(19)
Net unrealized gains (losses) included in net income	$	—	(a)	$	(1)	(c)	$	—	(a)	$	—	(d)

(a)Primarily included in mortgage banking and title income on the Consolidated Statements of Income.

(b)Transfers into interest-only strips - AFS level 3 measured on a recurring basis reflect movements from loans held for sale (Level 2 nonrecurring).

(c)Primarily included in fixed income on the Consolidated Statements of Income.

(d)Included in other expense.

(e)The loans held for investment at fair value option portfolio was transferred to the loans held for sale portfolio on April 1, 2021.

The changes in Level 3 assets and liabilities measured at fair value for the six months ended June 30, 2021 and 2020, on a recurring basis are summarized as follows: 

	Six Months Ended June 30, 2021
(Dollars in millions)	Interest- only strips- AFS			Loans held for sale			Loans held for investment			Net  derivative liabilities
Balance on January 1, 2021	$	32		$	12		$	16		$	(14)
Total net gains (losses) included in net income	4			2			—			(9)
Purchases	—			5			—			—
Sales	(33)			(10)			—			—
Settlements	—			(2)			(2)			5
Net transfers into (out of) Level 3	27		(b)	18		(e)	(14)		(e)	—
Balance on June 30, 2021	$	30		$	25		$	—		$	(18)
Net unrealized gains (losses) included in net income	$	1	(c)	$	2	(a)	$	—		$	(9)	(d)

	Six Months Ended June 30, 2020
(Dollars in millions)	Trading securities			Interest-only-strips-AFS			Loans held for sale			Net  derivative liabilities
Balance on January 1, 2020	$	1		$	19		$	14		$	(23)
Total net gains (losses) included in net income	—			(2)			1			(1)
Purchases	—			5			—			—
Sales	—			(9)			—			—
Settlements	—			—			(2)			5
Net transfers into (out of) Level 3	—			12		(b)	—			—
Balance on June 30, 2020	$	1		$	25		$	13		$	(19)
Net unrealized gains (losses) included in net income	$	—	(a)	$	(2)	(c)	$	1	(a)	$	(1)	(d)

(a)Primarily included in mortgage banking and title income on the Consolidated Statements of Income.

(b)Transfers into interest-only strips - AFS level 3 measured on a recurring basis reflect movements from loans held for sale (Level 2 nonrecurring).

(c)Primarily included in fixed income on the Consolidated Statements of Income.

(d)Included in other expense.

(e)The loans held for investment at fair value option portfolio was transferred to the loans held for sale portfolio on April 1, 2021.

Nonrecurring Fair Value Measurements

For assets measured at fair value on a nonrecurring basis which were still held on the Consolidated Balance Sheets at June 30, 2021, and December 31, 2020, respectively, the following tables provide the level of valuation assumptions used to determine each adjustment and the related carrying value.

	Carrying value at June 30, 2021
(Dollars in millions)	Level 1		Level 2		Level 3		Total
Loans held for sale—SBAs and USDA	$	—	$	532	$	1	$	533
Loans held for sale—first mortgages	—		—		1		1
Loans and leases (a)	—		—		66		66
OREO (b)	—		—		10		10
Other assets (c)	—		—		11		11

	Carrying value at December 31, 2020
(Dollars in millions)	Level 1		Level 2		Level 3		Total
Loans held for sale—SBAs and USDA	$	—	$	508	$	1	$	509
Loans held for sale—first mortgages	—		—		1		1
Loans and leases (a)	—		—		77		77
OREO (b)	—		—		15		15
Other assets (c)	—		—		9		9

(a)Represents carrying value of loans for which adjustments are required to be based on the appraised value of the collateral less estimated costs to sell. Write-downs on these loans are recognized as part of provision for credit losses.

(b)Represents the fair value and related losses of foreclosed properties that were measured subsequent to their initial classification as OREO. Balance excludes OREO related to government insured mortgages.

(c)Represents tax credit investments accounted for under the equity method.

Gains/(losses) on Nonrecurring Fair Value Measurements

For assets measured on a nonrecurring basis which were still held on the Consolidated Balance Sheets at period end, the following table provides information about the fair value adjustments recorded during the three and six months ended June 30, 2021 and 2020:

	Net gains (losses) Three Months Ended June 30,				Net gains (losses) Six Months Ended June 30,
(Dollars in millions)	2021		2020		2021		2020
Loans held for sale—SBAs and USDA	$	(2)	$	(1)	$	(2)	$	(2)
Loans and leases (a)	(1)		(1)		(3)		(6)
OREO (b)	(1)		—		(1)		—
Other assets (c)	—		(1)		—		(1)
	$	(4)	$	(3)	$	(6)	$	(9)

(a)Write-downs on these loans are recognized as part of provision for credit losses.

(b)Represents the fair value and related losses of foreclosed properties that were measured subsequent to their initial classification as OREO. Balance excludes OREO related to government insured mortgages.

(c)Represents tax credit investments accounted for under the equity method.

Schedule Of Unobservable Inputs Utilized In Determining The Fair Value Of Level 3 Recurring And Non-Recurring Measurements

The following tables provide information regarding the unobservable inputs utilized in determining the fair value of Level 3 recurring and non-recurring measurements as of June 30, 2021 and December 31, 2020:

(Dollars in millions)					Values Utilized
Level 3 Class	Fair Value at June 30, 2021		Valuation Techniques	Unobservable Input	Range	Weighted Average (d)
Available for sale securities SBA - interest only strips	$	30	Discounted cash flow	Constant prepayment rate	11% - 12%	11%
				Bond equivalent yield	11% - 13%	11%
Loans held for sale - residential real estate	$	26	Discounted cash flow	Prepayment speeds - First mortgage	4% - 13%	5%
				Foreclosure losses	46% - 65%	64%
				Loss severity trends - First mortgage	2% - 16% of UPB	10%
Loans held for sale - unguaranteed interest in SBA loans	$	1	Discounted cash flow	Constant prepayment rate	8% - 12%	10%
				Bond equivalent yield	15% - 16%	15%
Derivative liabilities, other	$	18	Discounted cash flow	Visa covered litigation resolution amount	$5.4 billion - $6.0 billion	$5.8 billion
				Probability of resolution scenarios	10% - 50%	16%
				Time until resolution	9 - 33 months	24 months
Loans and leases (a)	$	66	Appraisals from comparable properties	Marketability adjustments for specific properties	0% - 10% of appraisal	NM
			Other collateral valuations	Borrowing base certificates adjustment	20% - 50% of gross value	NM
				Financial Statements/Auction values adjustment	0% - 25% of reported value	NM
OREO (b)	$	10	Appraisals from comparable properties	Adjustment for value changes since appraisal	0% - 10% of appraisal	NM
Other assets (c)	$	11	Discounted cash flow	Adjustments to current sales yields for specific properties	0% - 15% adjustment to yield	NM
			Appraisals from comparable properties	Marketability adjustments for specific properties	0% - 25% of appraisal	NM

 NM - Not meaningful

(a)Represents carrying value of loans for which adjustments are required to be based on the appraised value of the collateral less estimated costs to sell. Write-downs on these loans are recognized as part of provision for credit losses.

(b)Represents the fair value of foreclosed properties that were measured subsequent to their initial classification as OREO. Balance excludes OREO related to government insured mortgages.

(c)Represents tax credit investments accounted for under the equity method.

(d)Weighted averages are determined by the relative fair value of the instruments or the relative contribution to an instrument's fair value.

(Dollars in millions)					Values Utilized
Level 3 Class	Fair Value at December 31, 2020		Valuation Techniques	Unobservable Input	Range	Weighted Average (d)
Available for sale securities SBA - interest only strips	$	32	Discounted cash flow	Constant prepayment rate	12%	12%
				Bond equivalent yield	15% - 17%	15%
Loans held for sale - residential real estate	$	13	Discounted cash flow	Prepayment speeds - First mortgage	5% - 15%	5%
				Foreclosure losses	59% - 70%	63%
				Loss severity trends - First mortgage	3% - 19% of UPB	12%
Loans held for sale - unguaranteed interest in SBA loans	$	1	Discounted cash flow	Constant prepayment rate	8% - 12%	10%
				Bond equivalent yield	7% - 8%	7%
Loans held for investment	$	16	Discounted cash flow	Constant prepayment rate	0% - 26%	11%
				Constant default rate	0% - 14%	1%
				Loss severity trends	0% - 100%	11%
Derivative liabilities, other	$	14	Discounted cash flow	Visa covered litigation resolution amount	$5.4 billion - $6.0 billion	$5.8 billion
				Probability of resolution scenarios	10% - 50%	16%
				Time until resolution	3 - 27 months	19 months
Loans and leases (a)	$	77	Appraisals from comparable properties	Marketability adjustments for specific properties	0% - 10% of appraisal	NM
			Other collateral valuations	Borrowing base certificates adjustment	20% - 50% of gross value	NM
				Financial Statements/Auction values adjustment	0% - 25% of reported value	NM
OREO (b)	$	15	Appraisals from comparable properties	Adjustment for value changes since appraisal	0% - 10% of appraisal	NM
Other assets (c)	$	9	Discounted cash flow	Adjustments to current sales yields for specific properties	0% - 15% adjustment to yield	NM
			Appraisals from comparable properties	Marketability adjustments for specific properties	0% - 25% of appraisal	NM

NM - Not meaningful

(a)Represents carrying value of loans for which adjustments are required to be based on the appraised value of the collateral less estimated costs to sell. Write-downs on these loans are recognized as part of provision for credit losses.

(b)Represents the fair value of foreclosed properties that were measured subsequent to their initial classification as OREO. Balance excludes OREO related to government insured mortgages.

(c)Represents tax credit investments accounted for under the equity method.

(d)Weighted averages are determined by the relative fair value of the instruments or the relative contribution to an instrument's fair value.

Summary Of Differences Between The Fair Value Carrying Amount Of Mortgages Held-For-Sale And Aggregate Unpaid Principal Amount

The following tables reflect the differences between the fair value carrying amount of residential real estate loans held for sale and held for investment measured at fair value in accordance with management’s election and the aggregate unpaid principal amount FHN is contractually entitled to receive at maturity.

	June 30, 2021
(Dollars in millions)	Fair value carrying amount		Aggregate unpaid principal		Fair value carrying amount less aggregate unpaid principal
Residential real estate loans held for sale reported at fair value:
Total loans	$	377	$	382	$	(5)
Nonaccrual loans	5		7		(2)
Loans 90 days or more past due and still accruing	2		2		—
	December 31, 2020
(Dollars in millions)	Fair value carrying amount		Aggregate unpaid principal		Fair value carrying amount less aggregate unpaid principal
Residential real estate loans held for sale reported at fair value:
Total loans	$	405	$	442	$	(37)
Nonaccrual loans	2		5		(3)
Loans held for investment reported at fair value:
Total loans	16		17		(1)
Nonaccrual loans	1		1		—

Changes In Fair Value Of Assets And Liabilities Which Fair Value Option Included In Current Period Earnings

Assets and liabilities accounted for under the fair value election are initially measured at fair value with subsequent changes in fair value recognized in earnings. Such changes in the fair value of assets and liabilities for which FHN elected the fair value option are included in current period earnings with classification in the income statement line item reflected in the following table:

	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions)	2021		2020		2021		2020
Changes in fair value included in net income:
Mortgage banking noninterest income
Loans held for sale	$	4	$	—	$	(5)	$	1

Summary Of Book Value And Estimated Fair Value Of Financial Instruments

The following tables summarize the book value and estimated fair value of financial instruments recorded in the Consolidated Balance Sheets as of June 30, 2021 and December 31, 2020:

	June 30, 2021
	Book Value		Fair Value
(Dollars in millions)			Level 1		Level 2		Level 3		Total
Assets:
Loans and leases, net of allowance for loan and lease losses
Commercial:
Commercial, financial and industrial	$	32,143	$	—	$	—	$	31,935	$	31,935
Commercial real estate	12,082		—		—		12,108		12,108
Consumer:
Consumer real estate	10,662		—		—		11,190		11,190
Credit card and other	985		—		—		1,009		1,009
Total loans and leases, net of allowance for loan and lease losses	55,872		—		—		56,242		56,242
Short-term financial assets:
Interest-bearing deposits with banks	13,451		13,451		—		—		13,451
Federal funds sold	51		—		51		—		51
Securities purchased under agreements to resell	571		—		571		—		571
Total short-term financial assets	14,073		13,451		622		—		14,073
Trading securities (a)	1,035		—		1,035		—		1,035
Loans held for sale:
Mortgage loans (elected fair value) (a)	377		—		352		25		377
USDA & SBA loans - LOCOM	533		—		535		1		536
Other loans - LOCOM	4		—		4		—		4
Mortgage loans - LOCOM	59		—		—		59		59
Total loans held for sale	973		—		891		85		976
Securities available for sale (a)	8,388		—		8,358		30		8,388
Derivative assets (a)	480		27		453		—		480
Other assets:
Tax credit investments	419		—		—		404		404
Deferred compensation mutual funds	122		122		—		—		122
Equity, mutual funds, and other (b)	264		29		—		235		264
Total other assets	805		151		—		639		790
Total assets	$	81,626	$	13,629	$	11,359	$	56,996	$	81,984
Liabilities:
Defined maturity deposits	$	4,304	$	—	$	4,311	$	—	$	4,311
Trading liabilities (a)	531		—		531		—		531
Short-term financial liabilities:
Federal funds purchased	777		—		777		—		777
Securities sold under agreements to repurchase	1,350		—		1,350		—		1,350
Other short-term borrowings	119		—		119		—		119
Total short-term financial liabilities	2,246		—		2,246		—		2,246
Term borrowings:
Real estate investment trust-preferred	46		—		—		47		47
Term borrowings—new market tax credit investment	45		—		—		45		45
Secured borrowings	15		—		—		15		15
Junior subordinated debentures	240		—		—		237		237
Other long term borrowings	1,326		—		1,476		—		1,476
Total term borrowings	1,672		—		1,476		344		1,820
Derivative liabilities (a)	118		26		74		18		118
Total liabilities	$	8,871	$	26	$	8,638	$	362	$	9,026

(a)Classes are detailed in the recurring and nonrecurring measurement tables.

(b)Level 1 primarily consists of mutual funds with readily determinable fair values. Level 3 includes restricted investments in FHLB-Cincinnati stock of $32 million and FRB stock of $203 million.

	December 31, 2020
	Book Value		Fair Value
(Dollars in millions)			Level 1		Level 2		Level 3		Total
Assets:
Loans and leases and allowance for loan and lease losses
Commercial:
Commercial, financial and industrial	$	32,651	$	—	$	—	$	32,582	$	32,582
Commercial real estate	12,033		—		—		12,079		12,079
Consumer:
Consumer real estate	11,483		—		—		11,903		11,903
Credit card and other	1,102		—		—		1,131		1,131
Total loans and leases, net of allowance for loan and lease losses	57,269		—		—		57,695		57,695
Short-term financial assets:
Interest-bearing deposits with banks	8,351		8,351		—		—		8,351
Federal funds sold	65		—		65		—		65
Securities purchased under agreements to resell	380		—		380		—		380
Total short-term financial assets	8,796		8,351		445		—		8,796
Trading securities (a)	1,176		—		1,176		—		1,176
Loans held for sale:
Mortgage loans (elected fair value) (a)	405		—		393		12		405
USDA & SBA loans - LOCOM	509		—		511		1		512
Other loans - LOCOM	31		—		31		—		31
Mortgage loans - LOCOM	77		—		—		77		77
Total loans held for sale	1,022		—		935		90		1,025
Securities available for sale (a)	8,047		—		8,015		32		8,047
Derivative assets (a)	769		63		706		—		769
Other assets:
Tax credit investments	400		—		—		371		371
Deferred compensation mutual funds	118		118		—		—		118
Equity, mutual funds, and other (b)	288		25		—		263		288
Total other assets	806		143		—		634		777
Total assets	$	77,885	$	8,557	$	11,277	$	58,451	$	78,285
Liabilities:
Defined maturity deposits	$	5,070	$	—	$	5,083	$	—	$	5,083
Trading liabilities (a)	353		—		353		—		353
Short-term financial liabilities:
Federal funds purchased	845		—		845		—		845
Securities sold under agreements to repurchase	1,187		—		1,187		—		1,187
Other short-term borrowings	166		—		166		—		166
Total short-term financial liabilities	2,198		—		2,198		—		2,198
Term borrowings:
Real estate investment trust-preferred	46		—		—		47		47
Term borrowings—new market tax credit investment	45		—		—		45		45
Secured borrowings	15		—		—		15		15
Junior subordinated debentures	238		—		—		223		223
Other long term borrowings	1,326		—		1,455		—		1,455
Total term borrowings	1,670		—		1,455		330		1,785
Derivative liabilities (a)	149		71		64		14		149
Total liabilities	$	9,440	$	71	$	9,153	$	344	$	9,568

(a)Classes are detailed in the recurring and nonrecurring measurement tables.

(b)Level 1 primarily consists of mutual funds with readily determinable fair values. Level 3 includes restricted investments in FHLB-Cincinnati stock of $61 million and FRB stock of $202 million.

The following table presents the contractual amount and fair value of unfunded loan commitments and standby and other commitments as of June 30, 2021 and December 31, 2020:

	Contractual Amount				Fair Value
(Dollars in millions)	June 30, 2021		December 31, 2020		June 30, 2021		December 31, 2020
Unfunded Commitments:
Loan commitments	$	22,497	$	20,796	$	1	$	2
Standby and other commitments	789		751		8		6