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Business Segment Information
 12 Months Ended
Dec. 31, 2022
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 table presents financial information for each reportable business segment for the years ended December 31:
Table 8.19.1
SEGMENT FINANCIAL INFORMATION
2022
(Dollars in millions)Regional BankingSpecialty BankingCorporateConsolidated
Net interest income (expense)$1,954 $557 $(119)$2,392 
Provision for credit losses94 14 (13)95 
Noninterest income (a)444 311 60 815 
Noninterest expense (b)(f)1,234 440 279 1,953 
Income (loss) before income taxes1,070 414 (325)1,159 
Income tax expense (benefit)251 101 (105)247 
Net income (loss)$819 $313 $(220)$912 
Average assets$42,295 $19,967 $21,955 $84,217 
Depreciation and amortization11 (7)60 64 
Expenditures for long-lived assets18 12 (6)24 
2021
(Dollars in millions)Regional BankingSpecialty BankingCorporateConsolidated
Net interest income (expense)$1,764 $620 $(390)$1,994 
Provision for credit losses (229)(64)(17)(310)
Noninterest income 438 597 41 1,076 
Noninterest expense (b)(c)(f)1,139 571 386 2,096 
Income (loss) before income taxes1,292 710 (718)1,284 
Income tax expense (benefit)303 171 (200)274 
Net income (loss)$989 $539 $(518)$1,010 
Average assets$41,527 $20,789 $25,293 $87,609 
Depreciation and amortization(67)(3)98 28 
Expenditures for long-lived assets27 3 7 37 
2020
(Dollars in millions)Regional BankingSpecialty BankingCorporateConsolidated
Net interest income (expense)$1,287 $576 $(201)$1,662 
Provision for credit losses (e)392 116 (5)503 
Noninterest income (a)345 576 571 1,492 
Noninterest expense (b)(c)(d)903 498 317 1,718 
Income (loss) before income taxes337 538 58 933 
Income tax expense (benefit)73 131 (128)76 
Net income (loss)$264 $407 $186 $857 
Average assets$31,890 $19,809 $12,647 $64,346 
Depreciation and amortization(39)3 82 46 
Expenditures for long-lived assets283 6 90 379 
(a)    2022 includes a $22 million gain related to the sale of the title insurance business in the Corporate segment. 2020 includes a $533 million purchase accounting gain associated with the IBKC merger in the Corporate segment.
(b)    2022, 2021, and 2020 include $136 million, $187 million and $155 million, respectively, in merger and integration expenses related to the IBKC merger and Pending TD Merger in the Corporate segment.
(c)    2021 and 2020 includes $37 million and $13 million, respectively, in asset impairments related to IBKC merger integration efforts in the Corporate segment.
(d)    2020 includes $41 million of contributions to FHN's foundations.
(e)    The provision for credit losses in 2020 was impacted by 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)    2022 and 2021 include $22 million and $19 million, respectively, in derivative valuation adjustments related to prior sales of Visa Class B shares in the Corporate segment.
The following table presents a disaggregation of FHN’s noninterest income by major product line and reportable segment for the years ended December 31, 2022, 2021, and 2020:
Table 8.19.2
NONINTEREST INCOME DETAIL BY SEGMENT
December 31, 2022
(Dollars in millions)Regional BankingSpecialty BankingCorporateConsolidated
Noninterest income:
Fixed income (a)$— $205 $— $205 
Deposit transactions and cash management153 10 8 171 
Brokerage, management fees and commissions92 — — 92 
Card and digital banking fees75 2 7 84 
Mortgage banking and title income— 68 — 68 
Other service charges and fees32 22 — 54 
Trust services and investment management48 — — 48 
Securities gains (losses), net (b)— — 18 18 
Other income (c)44 4 27 75 
     Total noninterest income$444 $311 $60 $815 
December 31, 2021
(Dollars in millions)Regional BankingSpecialty BankingCorporateConsolidated
Noninterest income:
Fixed income (a)$— $406 $— $406 
Deposit transactions and cash management157 12 6 175 
Brokerage, management fees and commissions88 — — 88 
Card and digital banking fees67 3 8 78 
Mortgage banking and title income— 152 2 154 
Other service charges and fees23 17 4 44 
Trust services and investment management51 — — 51 
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 
Brokerage, management fees and commissions66 — — 66 
Card and digital banking fees50 2 8 60 
Mortgage banking and title income— 128 1 129 
Other service charges and fees18 7 1 26 
Trust services and investment management39 — — 39 
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 
(a)2022, 2021 and 2020, include $43 million, $44 million, and $39 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.