Derivatives (Tables)

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives Associated With Fixed Income Trading Activities

The following tables summarize derivatives associated with FHNF's trading activities as of December 31, 2021 and 2020:

Table 8.22.1a-b

DERIVATIVES ASSOCIATED WITH TRADING

	December 31, 2021
(Dollars in millions)	Notional		Assets		Liabilities
Customer interest rate contracts	$	3,587	$	84	$	41
Offsetting upstream interest rate contracts	3,587		4		8
Option contracts purchased	13		—		—
Forwards and futures purchased	4,430		2		9
Forwards and futures sold	5,044		10		2

	December 31, 2020
(Dollars in millions)	Notional		Assets		Liabilities
Customer interest rate contracts	$	3,950	$	207	$	7
Offsetting upstream interest rate contracts	3,950		2		17
Forwards and futures purchased	10,795		62		—
Forwards and futures sold	11,633		1		65

Derivatives Associated With Interest Rate Risk Management Activities

The following tables summarize FHN’s derivatives associated with interest rate risk management activities as of December 31, 2021 and 2020:

Table 8.22.2a-b

DERIVATIVES ASSOCIATED WITH INTEREST RATE RISK MANAGEMENT

	December 31, 2021
(Dollars in millions)	Notional		Assets		Liabilities
Customer Interest Rate Contracts Hedging
Hedging Instruments and Hedged Items:
Customer interest rate contracts	$	8,037	$	202	$	29
Offsetting upstream interest rate contracts	8,037		4		15

	December 31, 2020
(Dollars in millions)	Notional		Assets		Liabilities
Customer Interest Rate Contracts Hedging
Hedging Instruments and Hedged Items:
Customer interest rate contracts	$	6,868	$	436	$	1
Offsetting upstream interest rate contracts	6,868		5		35

Gains/(Losses) on Derivatives Associated with Interest Rate Risk Management Activities

The following table summarizes gains (losses) on FHN’s derivatives associated with interest rate risk management activities for the years ended December 31, 2021, 2020, and 2019:

Table 8.22.3

DERIVATIVE GAINS (LOSSES) ASSOCIATED WITH INTEREST RATE RISK MANAGEMENT

	Year Ended December 31,
	2021		2020		2019
(Dollars in millions)	Gains (Losses)		Gains (Losses)		Gains (Losses)
Customer Interest Rate Contracts Hedging
Hedging Instruments and Hedged Items:
Customer interest rate contracts (a)	$	(268)	$	357	$	92
Offsetting upstream interest rate contracts (a)	268		(357)		(92)
Debt Hedging
Hedging Instruments:
Interest rate swaps (b)	$	—	$	2	$	13
Hedged Items:
Term borrowings (a) (c)	—		(2)		(13)

(a)Gains (losses) included in other expense within the Consolidated Statements of Income.

(b)Gains (losses) included in interest expense.

(c)Represents gains and losses attributable to changes in fair value due to interest rate risk as designated in ASC 815-20 hedging relationships.

Derivative Associated With Cash Flow Hedges

The following tables summarize FHN’s derivative activities associated with cash flow hedges as of December 31, 2021 and 2020:

Table 8.22.4a-b

DERIVATIVES ASSOCIATED WITH CASH FLOW HEDGES

	December 31, 2021
(Dollars in millions)	Notional		Assets		Liabilities
Cash Flow Hedges
Hedging Instruments:
Interest rate contracts	$	1,100	$	13	$	—
Hedged Items:
Variability in cash flows related to debt instruments (primarily loans)	N/A		$	1,100	N/A

	December 31, 2020
(Dollars in millions)	Notional		Assets		Liabilities
Cash Flow Hedges
Hedging Instruments:
Interest rate contracts	$	1,250	$	32	$	—
Hedged Items:
Variability in cash flows related to debt instruments (primarily loans)	N/A		$	1,250	N/A

Gains/(Losses) on Derivatives Associated with Cash Flow Hedges

The following table summarizes gains (losses) on FHN’s derivatives associated with cash flow hedges for the years ended December 31, 2021, 2020, and 2019:

Table 8.22.5

DERIVATIVE GAINS (LOSSES) ASSOCIATED WITH CASH FLOW HEDGES

	Year Ended December 31,
	2021		2020		2019
(Dollars in millions)	Gains (Losses)		Gains (Losses)		Gains (Losses)
Cash Flow Hedges
Hedging Instruments:
Interest rate contracts (a)	$	29	$	3	$	21
Gain (loss) recognized in other comprehensive income (loss)	(3)		15		11
Gain (loss) reclassified from AOCI into interest income	(7)		(6)		4

(a)Approximately $15 million of pre-tax gains are expected to be reclassified into earnings in the next twelve months.

Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The notional and fair values of these contracts are presented in the table below. Balances and activity for periods prior to the IBKC merger were not significant.

Table 8.22.6a-b

DERIVATIVES ASSOCIATED WITH MORTGAGE BANKING HEDGES

	December 31, 2021
(Dollars in millions)	Notional		Assets		Liabilities
Mortgage Banking Hedges
Option contracts written	$	241	$	4	$	—
Forward contracts written	404		—		—

	December 31, 2020
(Dollars in millions)	Notional		Assets		Liabilities
Mortgage Banking Hedges
Option contracts written	$	667	$	20	$	—
Forward contracts written	725		—		6

The following table summarizes gains (losses) on FHN's derivatives associated with mortgage banking activities for the years ended December 31, 2021 and 2020:

Table 8.22.7

DERIVATIVE GAINS (LOSSES) ASSOCIATED WITH MORTGAGE BANKING HEDGES

	Year Ended December 31,
	2021		2020
(Dollars in millions)	Gains (Losses)		Gains (Losses)
Mortgage Banking Hedges
Option contracts written	$	15	$	15
Forward contracts written	11		(37)

Derivative Assets And Collateral Received

The following table provides details of derivative assets and collateral received as presented on the Consolidated Balance Sheets as of December 31, 2021 and 2020:

Table 8.22.8

DERIVATIVE ASSETS & COLLATERAL RECEIVED

							Gross amounts not offset in the Balance Sheets
(Dollars in millions)	Gross amounts of recognized assets		Gross amounts offset in the Balance Sheets		Net amounts of assets presented in the Balance Sheets (a)		Derivative liabilities available for offset		Collateral received		Net amount
Derivative assets:
December 31, 2021
Interest rate derivative contracts	$	311	$	—	$	311	$	(32)	$	(181)	$	98
Forward contracts	12		—		12		(4)		(3)		5
	$	323	$	—	$	323	$	(36)	$	(184)	$	103
December 31, 2020
Interest rate derivative contracts	$	702	$	—	$	702	$	(7)	$	(327)	$	368
Forward contracts	63		—		63		(14)		(20)		29
	$	765	$	—	$	765	$	(21)	$	(347)	$	397

(a)Included in other assets on the Consolidated Balance Sheets. As of December 31, 2021 and 2020, $2 million and $4 million, respectively, of derivative assets have been excluded from these tables because they are generally not subject to master netting or similar agreements.

Derivative Liabilities and Collateral Pledged

The following table provides details of derivative liabilities and collateral pledged as presented on the Consolidated Balance Sheets as of December 31, 2021 and 2020:

Table 8.22.9

DERIVATIVE LIABILITIES & COLLATERAL PLEDGED

							Gross amounts not offset  in the Balance Sheets
(Dollars in millions)	Gross amounts of recognized liabilities		Gross  amounts offset in the Balance Sheets		Net amounts of liabilities presented in the Balance Sheets (a)		Derivative assets available for offset		Collateral pledged		Net amount
Derivative liabilities:
December 31, 2021
Interest rate derivative contracts	$	93	$	—	$	93	$	(32)	$	(38)	$	23
Forward contracts	10		—		10		(4)		(1)		5
	$	103	$	—	$	103	$	(36)	$	(39)	$	28
December 31, 2020
Interest rate derivative contracts	$	60	$	—	$	60	$	(7)	$	(31)	$	22
Forward contracts	65		—		65		(14)		(51)		—
	$	125	$	—	$	125	$	(21)	$	(82)	$	22

(a)Included in other liabilities on the Consolidated Balance Sheets. As of December 31, 2021 and 2020, $24 million and $22 million, respectively, of derivative liabilities (primarily Visa-related derivatives) have been excluded from these tables because they are generally not subject to master netting or similar agreements.