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Business Segment Information
 12 Months Ended
Dec. 31, 2021
Segment Reporting, Measurement Disclosures [Abstract]  
Business Segment Information Business Segment Information
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 present financial information for each reportable business segment for the years ended December 31:
Tables 8.20.1a-b-c
SEGMENT FINANCIAL INFORMATION
2021
(Dollars in millions)Regional BankingSpecialty BankingCorporateConsolidated
Net interest income (expense)$1,764 $619 $(389)$1,994 
Provision for credit losses(229)(64)(17)(310)
Noninterest income438 597 41 1,076 
Noninterest expense (b)(c)(f)1,151 571 374 2,096 
Income (loss) before income taxes1,280 709 (705)1,284 
Income tax expense (benefit)298 171 (195)274 
Net income (loss)$982 $538 $(510)$1,010 
Average assets$45,445 $20,803 $21,361 $87,609 
Depreciation and amortization(71)(2)101 28 
Expenditures for long-lived assets27 3 7 37 
2020
(Dollars in millions)Regional BankingSpecialty BankingCorporateConsolidated
Net interest income (expense)$1,264 $572 $(174)$1,662 
Provision for credit losses (e)392 116 (5)503 
Noninterest income (a)345 576 571 1,492 
Noninterest expense (b)(c)(d)944 494 280 1,718 
Income (loss) before income taxes273 538 122 933 
Income tax expense (benefit)56 131 (111)76 
Net income (loss)$217 $407 $233 $857 
Average assets$32,782 $19,822 $11,742 $64,346 
Depreciation and amortization(42)4 84 46 
Expenditures for long-lived assets283 6 90 379 
2019
(Dollars in millions)Regional BankingSpecialty BankingCorporateConsolidated
Net interest income (expense)$833 $389 $(12)$1,210 
Provision for credit losses24 37 (16)45 
Noninterest income293 315 46 654 
Noninterest expense (b)(c)(d)(f)678 347 208 1,233 
Income (loss) before income taxes424 320 (158)586 
Income tax expense (benefit)97 79 (42)134 
Net income (loss)$327 $241 $(116)$452 
Average assets$18,236 $15,517 $7,991 $41,744 
Depreciation and amortization22 14 29 65 
Expenditures for long-lived assets29 4 16 49 
(a)    2020 includes a $533 million purchase accounting gain associated with the IBKC merger in the Corporate segment.
(b)    2019 includes restructuring-related costs associated with efficiency initiatives; refer to Note 25 - Restructuring, Repositioning, and Efficiency for additional information. 2021, 2020 and 2019 include merger-related expenses; refer to Note 2 - Acquisitions and Divestitures for additional information.
(c)    2021 and 2020 includes$37 million and $13 million, respectively, in asset impairments related to IBKC merger integration efforts in the Corporate segment. 2019 includes $25 million of asset impairments associated with acquisition, restructuring, and rebranding initiatives.
(d)    2020 and 2019 include $41 million and $11 million, respectively, of contributions to FHN's foundations.
(e)    Increase in provision for credit losses in 2020 is primarily due to the provision related to non-PCD loans acquired in the IBKC merger and Truist branch acquisition and the economic forecast attributable to the COVID-19 pandemic.
(f)    2021 and 2019 include $19 million and $4 million, respectively, in derivative valuation adjustments related to prior sales of Visa Class B shares in the Corporate segment.
The following tables reflect a disaggregation of FHN’s noninterest income by major product line and reportable segment for the years ended December 31, 2021, 2020, and 2019:
Tables 8.20.2a-b-c
NONINTEREST INCOME DETAIL BY SEGMENT
December 31, 2021
(Dollars in millions)Regional BankingSpecialty BankingCorporateConsolidated
Noninterest income:
Fixed income (a)$— $406 $— $406 
Deposit transactions and cash management157 12 6 175 
Mortgage banking and title income— 152 2 154 
Brokerage, management fees and commissions88 — — 88 
Card and digital banking fees67 3 8 78 
Trust services and investment management51 — — 51 
Other service charges and fees23 17 4 44 
Securities gains (losses), net (b)— — 13 13 
Purchase accounting gain— — (1)(1)
Other income (c)52 7 9 68 
     Total noninterest income$438 $597 $41 $1,076 
December 31, 2020
(Dollars in millions)Regional BankingSpecialty BankingCorporateConsolidated
Noninterest income:
Fixed income (a)$1 $422 $— $423 
Deposit transactions and cash management131 11 6 148 
Mortgage banking and title income— 128 1 129 
Brokerage, management fees and commissions66 — — 66 
Card and digital banking fees50 2 8 60 
Trust services and investment management39 — — 39 
Other service charges and fees18 7 1 26 
Securities gains (losses), net (b)— — (6)(6)
Purchase accounting gain— — 533 533 
Other income (c)40 6 28 74 
     Total noninterest income$345 $576 $571 $1,492 
December 31, 2019
(Dollars in millions)Regional BankingSpecialty BankingCorporateConsolidated
Noninterest income:
Fixed income (a)$— $278 $1 $279 
Deposit transactions and cash management114 11 7 132 
Mortgage banking and title income— 8 2 10 
Brokerage, management fees and commissions55 — — 55 
Card and digital banking fees41 2 6 49 
Trust services and investment management30 — — 30 
Other service charges and fees16 5 — 21 
Other income (c)37 11 30 78 
     Total noninterest income$293 $315 $46 $654 
(a)2021, 2020 and 2019, include $44million , $39 million and $34 million, respectively, 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 letter of credit fees and insurance commissions in scope of ASC 606.