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Business Segment Information
 6 Months Ended
Jun. 30, 2023
Segment Reporting [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. 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 three and six months ended June 30, 2023 and 2022:
SEGMENT FINANCIAL INFORMATION
Three Months Ended June 30, 2023
(Dollars in millions)Regional BankingSpecialty BankingCorporateConsolidated
Net interest income (expense)$612 $129 $(111)$630 
Provision for credit losses43 10 (3)50 
Noninterest income (a)108 48 244 400 
Noninterest expense (b)321 88 146 555 
Income (loss) before income taxes356 79 (10)425 
Income tax expense (benefit)84 19 (7)96 
Net income (loss)$272 $60 $(3)$329 
Average assets$45,615 $20,024 $16,665 $82,304 

Three Months Ended June 30, 2022
(Dollars in millions)Regional BankingSpecialty BankingCorporateConsolidated
Net interest income (expense)$465 $141 $(64)$542 
Provision for credit losses52 (18)(4)30 
Noninterest income114 96 (9)201 
Noninterest expense (b)299 114 75 488 
Income (loss) before income taxes228 141 (144)225 
Income tax expense (benefit)53 35 (40)48 
Net income (loss)$175 $106 $(104)$177 
Average assets$41,943 $20,237 $24,146 $86,326 
(a)     2023 includes a $225 million gain on merger termination in the Corporate segment.
(b)     2023 includes a $50 million contribution to the First Horizon Foundation and $30 million in merger and integration planning expenses related to the TD Transaction in the Corporate segment. 2022 includes $38 million in merger and integration expenses related to the IBKC merger and TD Transaction in the Corporate segment.
Six Months Ended June 30, 2023
(Dollars in millions)Regional BankingSpecialty BankingCorporateConsolidated
Net interest income (expense)$1,198 $255 $(135)$1,318 
Provision for credit losses85 20 (5)100 
Noninterest income (a)215 101 255 571 
Noninterest expense (b)641 181 211 1,033 
Income (loss) before income taxes687 155 (86)756 
Income tax expense (benefit)161 38 (28)171 
Net income (loss)$526 $117 $(58)$585 
Average assets$45,054 $19,732 $15,796 $80,582 
Six Months Ended June 30, 2022
(Dollars in millions)Regional BankingSpecialty BankingCorporateConsolidated
Net interest income (expense)$892 $285 $(156)$1,021 
Provision for credit losses22 (21)(11)(10)
Noninterest income228 201 1 430 
Noninterest expense (b)604 247 131 982 
Income (loss) before income taxes494 260 (275)479 
Income tax expense (benefit)116 63 (74)105 
Net income (loss)$378 $197 $(201)$374 
Average assets$41,249 $20,240 $25,961 $87,450 
(a)     2023 includes a $225 million gain on merger termination in the Corporate segment.
(b)     2023 includes a $50 million contribution to the First Horizon Foundation and $51 million in merger and integration planning expenses related to the TD Transaction in the Corporate segment. 2022 includes $75 million in merger and integration expenses related to the IBKC merger and TD Transaction 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 six months ended June 30, 2023 and 2022:

NONINTEREST INCOME DETAIL BY SEGMENT
Three months ended June 30, 2023
(Dollars in millions)Regional BankingSpecialty BankingCorporateConsolidated
Noninterest income:
Deposit transactions and cash management$40 $3 $2 $45 
Fixed income (a)— 31 (1)30 
Brokerage, management fees and commissions22 — — 22 
Card and digital banking fees19 — 2 21 
Other service charges and fees8 6 — 14 
Trust services and investment management12 — — 12 
Mortgage banking and title income— 6 — 6 
Deferred compensation income— — 8 8 
Gain on merger termination — — 225 225 
Other income (b)7 2 8 17 
Total noninterest income$108 $48 $244 $400 
Three months ended June 30, 2022
(Dollars in millions)Regional BankingSpecialty BankingCorporateConsolidated
Noninterest income:
Deposit transactions and cash management$38 $2 $2 $42 
Fixed income (a)— 51 — 51 
Brokerage, management fees and commissions24 — — 24 
Card and digital banking fees21 — 2 23 
Other service charges and fees9 6 — 15 
Trust services and investment management12 — — 12 
Mortgage banking and title income— 34 — 34 
Deferred compensation income — — (17)(17)
Other income (b)10 3 4 17 
Total noninterest income$114 $96 $(9)$201 
(a)2023 and 2022 includes $9 million and $10 million, respectively, of underwriting, portfolio advisory, and other noninterest income in scope of ASC 606, "Revenue From Contracts With Customers."
(b)Includes letter of credit fees and insurance commissions in scope of ASC 606.
Six months ended June 30, 2023
(Dollars in millions)Regional BankingSpecialty BankingCorporateConsolidated
Noninterest income:
Deposit transactions and cash management$78 $5 $4 $87 
Fixed income (a)— 70 (1)69 
Brokerage, management fees and commissions44 — — 44 
Card and digital banking fees36 1 3 40 
Other service charges and fees16 11 — 27 
Trust services and investment management24 — — 24 
Mortgage banking and title income— 11 — 11 
Deferred compensation income— — 11 11 
Gain on merger termination— — 225 225 
Securities gains (losses), net (b)— — 1 1 
Other income (c)17 3 12 32 
Total noninterest income$215 $101 $255 $571 
Six months ended June 30, 2022
(Dollars in millions)Regional BankingSpecialty BankingCorporateConsolidated
Noninterest income:
Deposit transactions and cash management$77 $5 $4 $86 
Fixed income (a)— 124 — 124 
Brokerage, management fees and commissions48 — — 48 
Card and digital banking fees38 1 4 43 
Other service charges and fees16 11 1 28 
Trust services and investment management25 — — 25 
Mortgage banking and title income— 56 — 56 
Deferred compensation income— — (21)(21)
Securities gains (losses), net (b)— — 6 6 
Other income (c)24 4 7 35 
Total noninterest income$228 $201 $1 $430 
(a)2023 and 2022 includes $19 million and $21 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.