Business Segment Information (Tables)

9 Months Ended

Sep. 30, 2022

Schedule of Segment Financial Information

The following tables present financial information for each reportable business segment for the three and nine months ended September 30, 2022 and 2021:


SEGMENT FINANCIAL INFORMATION
	Three Months Ended September 30, 2022
(Dollars in millions)	Regional Banking		Specialty Banking		Corporate		Consolidated
Net interest income (expense)	$	517	$	138	$	7	$	662
Provision for credit losses	43		17		—		60
Noninterest income (a)	110		64		39		213
Noninterest expense (b)	304		104		61		469
Income (loss) before income taxes	280		81		(15)		346
Income tax expense (benefit)	65		20		(7)		78
Net income (loss)	$	215	$	61	$	(8)	$	268
Average assets	$	42,815	$	19,749	$	19,986	$	82,550


	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	113		142		(8)		247
Noninterest expense (b)	292		139		95		526
Income (loss) before income taxes	317		190		(209)		298
Income tax expense (benefit)	74		46		(57)		63
Net income (loss)	$	243	$	144	$	(152)	$	235
Average assets	$	40,908	$	20,505	$	26,988	$	88,401

(a) 2022 includes a $21 million gain related to the sale of the title insurance business in the Corporate segment.

(b) 2022 and 2021 includes $24 million and $46 million, respectively, in merger and integration expenses related to the IBKC merger and Pending TD Merger in the Corporate segment.



	Nine Months Ended September 30, 2022
(Dollars in millions)	Regional Banking		Specialty Banking		Corporate		Consolidated
Net interest income (expense)	$	1,410	$	424	$	(151)	$	1,683
Provision for credit losses	64		(4)		(10)		50
Noninterest income (a)	337		265		40		642
Noninterest expense (b)	911		349		190		1,450
Income (loss) before income taxes	772		344		(291)		825
Income tax expense (benefit)	181		84		(82)		183
Net income (loss)	$	591	$	260	$	(209)	$	642
Average assets	$	41,779	$	20,071	$	23,949	$	85,799



	Nine Months Ended September 30, 2021
(Dollars in millions)	Regional Banking		Specialty Banking		Corporate		Consolidated
Net interest income (expense)	$	1,319	$	466	$	(289)	$	1,496
Provision for credit losses	(169)		(60)		(16)		(245)
Noninterest income	323		477		29		829
Noninterest expense (b)	837		441		289		1,567
Income (loss) before income taxes	974		562		(533)		1,003
Income tax expense (benefit)	228		136		(142)		222
Net income (loss)	$	746	$	426	$	(391)	$	781
Average assets	$	41,931	$	20,717	$	24,483	$	87,131

(a) 2022 includes a $21 million gain related to the sale of the title insurance business in the Corporate segment.

(b) 2022 and 2021 includes $99 million and $148 million, respectively, in merger and integration expenses related to the IBKC merger and Pending TD Merger in the Corporate segment.

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, 2022 and 2021:


NONINTEREST INCOME DETAIL BY SEGMENT
	Three months ended September 30, 2022
(Dollars in millions)	Regional Banking		Specialty Banking		Corporate		Consolidated
Noninterest income:
Fixed income (a)	$	—	$	46	$	—	$	46
Deposit transactions and cash management	39		2		2		43
Brokerage, management fees and commissions	23		—		—		23
Mortgage banking and title income	—		9		—		9
Card and digital banking fees	19		—		2		21
Other service charges and fees	8		5		—		13
Trust services and investment management	11		—		—		11
Securities gains (losses), net (b)	—		—		12		12
Deferred compensation income	—		—		(3)		(3)
Other income (c)	10		2		26		38
Total noninterest income	$	110	$	64	$	39	$	213



	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	40		3		1		44
Brokerage, management fees and commissions	24		—		—		24
Mortgage banking and title income	—		34		—		34
Card and digital banking fees	18		1		2		21
Other service charges and fees	6		5		1		12
Trust services and investment management	13		—		—		13
Securities gains (losses), net (b)	—		—		1		1
Deferred compensation income	—		—		3		3
Loss on debt extinguishment	—		—		(23)		(23)
Other income (c)	12		3		7		22
Total noninterest income	$	113	$	142	$	(8)	$	247

(a)2022 and 2021 includes $13 million and $12 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.



	Nine Months Ended September 30, 2022
(Dollars in millions)	Regional Banking		Specialty Banking		Corporate		Consolidated
Noninterest income:
Fixed income (a)	$	—	$	170	$	—	$	170
Deposit transactions and cash management	115		7		7		129
Brokerage, management fees and commissions	71		—		—		71
Mortgage banking and title income	—		65		—		65
Card and digital banking fees	57		2		5		64
Other service charges and fees	24		17		—		41
Trust services and investment management	36		—		—		36
Securities gains (losses), net (b)	—		—		18		18
Deferred compensation income	—		—		(24)		(24)
Other income (c)	34		4		34		72
Total noninterest income	$	337	$	265	$	40	$	642



	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
Brokerage, management fees and commissions	65		—		—		65
Mortgage banking and title income	—		124		2		126
Card and digital banking fees	51		2		6		59
Other service charges and fees	18		12		2		32
Trust services and investment management	39		—		—		39
Securities gains (losses), net (b)	—		—		12		12
Deferred compensation income	—		—		12		12
Loss on debt extinguishment	—		—		(23)		(23)
Other income (c)	32		8		13		53
Total noninterest income	$	323	$	477	$	29	$	829

(a)2022 and 2021 includes $33 million and $35 million for 2022 and 2021, 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