Business Segment Information (Tables)

6 Months Ended

Jun. 30, 2023

Schedule of Segment Financial Information

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 Banking		Specialty Banking		Corporate		Consolidated
Net interest income (expense)	$	612	$	129	$	(111)	$	630
Provision for credit losses	43		10		(3)		50
Noninterest income (a)	108		48		244		400
Noninterest expense (b)	321		88		146		555
Income (loss) before income taxes	356		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 Banking		Specialty Banking		Corporate		Consolidated
Net interest income (expense)	$	465	$	141	$	(64)	$	542
Provision for credit losses	52		(18)		(4)		30
Noninterest income	114		96		(9)		201
Noninterest expense (b)	299		114		75		488
Income (loss) before income taxes	228		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 Banking		Specialty Banking		Corporate		Consolidated
Net interest income (expense)	$	1,198	$	255	$	(135)	$	1,318
Provision for credit losses	85		20		(5)		100
Noninterest income (a)	215		101		255		571
Noninterest expense (b)	641		181		211		1,033
Income (loss) before income taxes	687		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 Banking		Specialty Banking		Corporate		Consolidated
Net interest income (expense)	$	892	$	285	$	(156)	$	1,021
Provision for credit losses	22		(21)		(11)		(10)
Noninterest income	228		201		1		430
Noninterest expense (b)	604		247		131		982
Income (loss) before income taxes	494		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 Banking		Specialty Banking		Corporate		Consolidated
Noninterest income:
Deposit transactions and cash management	$	40	$	3	$	2	$	45
Fixed income (a)	—		31		(1)		30
Brokerage, management fees and commissions	22		—		—		22
Card and digital banking fees	19		—		2		21
Other service charges and fees	8		6		—		14
Trust services and investment management	12		—		—		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 Banking		Specialty Banking		Corporate		Consolidated
Noninterest income:
Deposit transactions and cash management	$	38	$	2	$	2	$	42
Fixed income (a)	—		51		—		51
Brokerage, management fees and commissions	24		—		—		24
Card and digital banking fees	21		—		2		23
Other service charges and fees	9		6		—		15
Trust services and investment management	12		—		—		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 Banking		Specialty Banking		Corporate		Consolidated
Noninterest income:
Deposit transactions and cash management	$	78	$	5	$	4	$	87
Fixed income (a)	—		70		(1)		69
Brokerage, management fees and commissions	44		—		—		44
Card and digital banking fees	36		1		3		40
Other service charges and fees	16		11		—		27
Trust services and investment management	24		—		—		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 Banking		Specialty Banking		Corporate		Consolidated
Noninterest income:
Deposit transactions and cash management	$	77	$	5	$	4	$	86
Fixed income (a)	—		124		—		124
Brokerage, management fees and commissions	48		—		—		48
Card and digital banking fees	38		1		4		43
Other service charges and fees	16		11		1		28
Trust services and investment management	25		—		—		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.