Investment Securities (Tables)

9 Months Ended

Sep. 30, 2021

The following tables summarize FHN’s investment securities as of September 30, 2021 and December 31, 2020:


	September 30, 2021
(Dollars in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities available for sale:
U.S. treasuries	$	603	$	—	$	—	$	603
Government agency issued MBS	4,324		58		(37)		4,345
Government agency issued CMO	2,234		14		(31)		2,217
Other U.S. government agencies	794		6		(12)		788

States and municipalities	516		10		(1)		525
	$	8,471	$	88	$	(81)	8,478
AFS securities recorded at fair value through earnings:
SBA interest-only strips (a)							16
Total securities available for sale (b)							$	8,494

Securities held to maturity:
Government agency issued MBS	$	229	$	—	$	(1)	$	228
Government agency issued CMO	75		—		—		75
Total securities held to maturity	$	304	$	—	$	(1)	$	303

(a)SBA interest-only strips are recorded at elected fair value. See Note 17 - Fair Value of Assets and Liabilities for additional information.

(b)Includes $7.5 billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes.


	December 31, 2020
(Dollars in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities available for sale:
U.S. treasuries	$	613	$	—	$	—	$	613
Government agency issued MBS	3,722		92		(2)		3,812
Government agency issued CMO	2,380		29		(3)		2,406
Other U.S. government agencies	672		12		—		684
Corporate and other debt	40		1		(1)		40
States and municipalities	445		15		—		460
	$	7,872	$	149	$	(6)	8,015
AFS securities recorded at fair value through earnings:
SBA interest-only strips (a)							32
Total securities available for sale (b)							$	8,047

Securities held to maturity:
Corporates and other debt	$	10	$	—	$	—	$	10
Total securities held to maturity	$	10	$	—	$	—	$	10

(a)SBA interest-only strips are recorded at elected fair value. See Note 17 - Fair Value of Assets and Liabilities for additional information.

(b)Includes $6.4 billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes.

Schedule of Amortized Cost And Fair Value By Contractual Maturity

The amortized cost and fair value by contractual maturity for the debt securities portfolio as of September 30, 2021 is provided below:


	Held to Maturity				Available for Sale
(Dollars in millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Within 1 year	$	—	$	—	$	654	$	654
After 1 year through 5 years	—		—		152		153
After 5 years through 10 years			—		347		355
After 10 years	—		—		760		770
Subtotal	—		—		1,913		1,932
Government agency issued MBS and CMO (a)	304		303		6,558		6,562
Total	$	304	$	303	$	8,471	$	8,494

(a)Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

Schedule of Investments Within The Available For Sale Portfolio That Had Unrealized Losses

The following tables provide information on investments within the available-for-sale portfolio that had unrealized losses as of September 30, 2021 and December 31, 2020:


	As of September 30, 2021
	Less than 12 months				12 months or longer				Total
(Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses

Government agency issued MBS	$	2,101	$	(33)	$	99	$	(4)	$	2,200	$	(37)
Government agency issued CMO	1,243		(25)		179		(6)		1,422		(31)
Other U.S. government agencies	495		(12)		—		—		495		(12)

States and municipalities	107		(1)		—		—		107		(1)
Total	$	3,946	$	(71)	$	278	$	(10)	$	4,224	$	(81)


	As of December 31, 2020
	Less than 12 months				12 months or longer				Total
(Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. treasuries	$	307	$	—	$	—	$	—	$	307	$	—
Government agency issued MBS	426		(2)		—		—		426		(2)
Government agency issued CMO	586		(3)		—		—		586		(3)
Other U.S. government agencies	80		(1)		—		—		80		(1)

States and municipalities	1		—		—		—		1		—
Total	$	1,400	$	(6)	$	—	$	—	$	1,400	$	(6)