Business Segment Information

9 Months Ended

Sep. 30, 2021

Segment Reporting, Measurement Disclosures [Abstract]

FHN's operating segments are composed of the following:

•Regional Banking segment offers financial products and services, including traditional lending and deposit taking, to consumer and commercial clients primarily in the southern U.S. and other selected markets. Regional Banking also provides investment, wealth management, financial planning, trust and asset management services for consumer clients.

•Specialty Banking segment consists of lines of business that deliver product offerings and services with specialized industry knowledge. Specialty Banking’s lines of business include asset-based lending, mortgage warehouse lending, commercial real estate, franchise finance, correspondent banking, equipment finance, mortgage, and title insurance. In addition to traditional lending and deposit taking, Specialty Banking also delivers treasury management solutions, loan syndications, and international banking. Additionally, Specialty Banking has a line of business focused on 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.

•Corporate segment consists primarily of corporate support functions including risk management, audit, accounting, finance, executive office, and corporate communications. Shared support services such as human resources, properties, technology, credit risk and bank operations are allocated to the activities of Regional Banking, Specialty Banking and Corporate. Additionally, the Corporate segment includes centralized management of capital and funding to support the business activities of the company including management of wholesale funding, liquidity, and capital management and allocation. The Corporate segment also includes the revenue and expense associated with run-off businesses such as pre-2009 mortgage banking elements, run-off consumer and trust preferred loan portfolios, and other exited businesses.

Periodically, FHN adapts its segments to reflect managerial or strategic changes. During 2020, FHN reorganized its internal management structure and, accordingly, its segment reporting structure. Historically, FHN's reportable business segments were Regional Banking, Fixed Income, Corporate,

and Non-strategic. The closing of the FHN and IBKC merger-of-equals transaction prompted organizational changes to better integrate and execute the combined Company's strategic priorities across all lines of businesses. As a result, segment information for 2020 has been reclassified to conform to the current period presentation.

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 tables reflect financial information for each reportable business segment for the three and nine months ended September 30, 2021 and 2020:


	Three Months Ended September 30, 2021
(Dollars in millions)	Regional Banking		Specialty Banking		Corporate		Consolidated
Net interest income (expense)	$	444	$	154	$	(106)	$	492
Provision for credit losses	(52)		(33)		—		(85)
Noninterest income	112		142		(7)		247
Noninterest expense	301		141		84		526
Income (loss) before income taxes	307		188		(197)		298
Income tax expense (benefit)	72		45		(54)		63
Net income (loss)	$	235	$	143	$	(143)	$	235
Average assets	$	40,722	$	20,460	$	27,219	$	88,401

	Three Months Ended September 30, 2020
(Dollars in millions)	Regional Banking		Specialty Banking		Corporate		Consolidated
Net interest income (expense)	$	448	$	161	$	(77)	$	532
Provision for credit losses	194		34		(1)		227
Noninterest income	97		181		545		823
Noninterest expense	301		138		148		587
Income (loss) before income taxes	50		170		321		541
Income tax expense (benefit)	9		41		(48)		2
Net income (loss)	$	41	$	129	$	369	$	539
Average assets	$	43,703	$	21,693	$	16,287	$	81,683


	Nine Months Ended September 30, 2021
(Dollars in millions)	Regional Banking		Specialty Banking		Corporate		Consolidated
Net interest income (expense)	$	1,314	$	464	$	(282)	$	1,496
Provision for credit losses	(172)		(61)		(12)		(245)
Noninterest income	320		476		33		829
Noninterest expense (a)	851		441		275		1,567
Income (loss) before income taxes	955		560		(512)		1,003
Income tax expense (benefit)	223		135		(136)		222
Net income (loss)	$	732	$	425	$	(376)	$	781
Average assets	$	41,757	$	20,669	$	24,705	$	87,131
(a) Includes $35 million in asset impairments related to IBKC merger integration efforts in the Corporate segment.


	Nine Months Ended September 30, 2020
(Dollars in millions)	Regional Banking		Specialty Banking		Corporate		Consolidated
Net interest income (expense)	$	853	$	400	$	(113)	$	1,140
Provision for credit losses	394		106		2		502
Noninterest income	239		410		555		1,204
Noninterest expense	639		359		212		1,210
Income (loss) before income taxes	59		345		228		632
Income tax expense (benefit)	7		84		(71)		20
Net income (loss)	$	52	$	261	$	299	$	612
Average assets	$	27,962	$	18,885	$	10,963	$	57,810

The following tables reflect a disaggregation of FHN’s noninterest income by major product line and reportable segment for the three and nine months ended September 30, 2021 and 2020:


	Three months ended September 30, 2021
(Dollars in millions)	Regional Banking		Specialty Banking		Corporate		Consolidated
Noninterest income:
Fixed income (a)	$	—	$	96	$	—	$	96
Deposit transactions and cash management	39		3		2		44
Mortgage banking and title income	—		33		1		34
Brokerage, management fees and commissions	24		—		—		24
Bankcard income	14		1		—		15
Trust services and investment management	13		—		—		13
Securities gains (losses), net (b)	—		—		1		1
Loss on debt extinguishment	—		—		(23)		(23)
Other income (c)	22		9		12		43
Total noninterest income	$	112	$	142	$	(7)	$	247

(a)Includes $12 million of underwriting, portfolio advisory, and other noninterest income in scope of 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, 2020
(Dollars in millions)	Regional Banking		Specialty Banking		Corporate		Consolidated
Noninterest income:
Fixed income (a)	$	—	$	111	$	—	$	111
Mortgage banking and title income	—		66		—		66
Deposit transactions and cash management	38		2		2		42
Brokerage, management fees and commissions	18		—		—		18
Trust services and investment management	12		—		—		12
Bankcard income	10		—		—		10
Securities gains (losses), net (b)	—		—		(1)		(1)
Purchase accounting gain	—		—		532		532
Other income (c)	19		2		12		33
Total noninterest income	$	97	$	181	$	545	$	823

(a)Includes $10 million of underwriting, portfolio advisory, and other noninterest income in scope of 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.


	Nine Months Ended September 30, 2021
(Dollars in millions)	Regional Banking		Specialty Banking		Corporate		Consolidated
Noninterest income:
Fixed income (a)	$	1	$	323	$	—	$	324
Deposit transactions and cash management	117		8		5		130
Mortgage banking and title income	—		124		2		126
Brokerage, management fees and commissions	65		—		—		65
Bankcard income	37		2		1		40
Trust services and investment management	39		—		—		39
Securities gains (losses), net (b)	—		—		12		12
Purchase accounting gain	—		—		(1)		(1)
Loss on debt extinguishment	—		—		(23)		(23)
Other income (c)	61		19		37		117
Total noninterest income	$	320	$	476	$	33	$	829

(a)Includes $35 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.


	Nine Months Ended September 30, 2020
(Dollars in millions)	Regional Banking		Specialty Banking		Corporate		Consolidated
Noninterest income:
Fixed income (a)	$	1	$	318	$	—	$	319
Deposit transactions and cash management	91		8		4		103
Mortgage banking and title income	—		71		1		72
Brokerage, management fees and commissions	47		—		—		47
Trust services and investment management	27		—		—		27
Bankcard income	23		1		—		24
Securities gains (losses), net (b)	—		—		(2)		(2)
Purchase accounting gain	—		—		532		532
Other income (c)	50		12		20		82
Total noninterest income	$	239	$	410	$	555	$	1,204

(a)Includes $29 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.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

+ Details