Derivatives (Tables)

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivatives Associated With Fixed Income Trading Activities

The following table summarizes derivatives associated with FHNF's trading activities as of March 31, 2024 and December 31, 2023:

DERIVATIVES ASSOCIATED WITH TRADING
	March 31, 2024
(Dollars in millions)	Notional		Assets		Liabilities
Customer interest rate contracts	$	4,173	$	9	$	232
Offsetting upstream interest rate contracts	4,380		166		10
Forwards and futures purchased	1,629		4		1
Forwards and futures sold	1,576		1		3

 

	December 31, 2023
(Dollars in millions)	Notional		Assets		Liabilities
Customer interest rate contracts	$	4,067	$	22	$	197
Offsetting upstream interest rate contracts	4,273		135		23
Forwards and futures purchased	777		9		—
Forwards and futures sold	912		—		9

Schedule of Derivatives Associated With Interest Rate Risk Management Activities

The following table summarizes FHN’s derivatives associated with interest rate risk management activities as of March 31, 2024 and December 31, 2023:

DERIVATIVES ASSOCIATED WITH INTEREST RATE RISK MANAGEMENT
	March 31, 2024
(Dollars in millions)	Notional		Assets		Liabilities
Customer Interest Rate Contracts Hedging
Hedging Instruments and Hedged Items:
Customer interest rate contracts	$	8,290	$	7	$	465
Offsetting upstream interest rate contracts	8,290		462		8

	December 31, 2023
(Dollars in millions)	Notional		Assets		Liabilities
Customer Interest Rate Contracts Hedging
Hedging Instruments and Hedged Items:
Customer interest rate contracts	$	8,375	$	21	$	392
Offsetting upstream interest rate contracts	8,375		389		22

Schedule of 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 three months ended March 31, 2024 and 2023:

DERIVATIVE GAINS (LOSSES) ASSOCIATED WITH INTEREST RATE RISK MANAGEMENT
	Three Months Ended March 31,
	2024		2023
(Dollars in millions)	Gains (Losses)		Gains (Losses)
Customer Interest Rate Contracts Hedging
Hedging Instruments and Hedged Items:
Customer interest rate contracts (a)	$	(86)	$	160
Offsetting upstream interest rate contracts (a)	86		(160)

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

Schedule of Derivative Associated With Cash Flow Hedges

The following tables summarize FHN’s derivative activities associated with cash flow hedges as of March 31, 2024 and December 31, 2023:

DERIVATIVES ASSOCIATED WITH CASH FLOW HEDGES
	March 31, 2024
(Dollars in millions)	Notional		Assets		Liabilities
Cash Flow Hedges
Hedging Instruments:
Interest rate contracts	$	5,000	$	—	$	76
Hedged Items:
Variability in cash flows related to debt instruments (primarily loans)	N/A		$	5,000	N/A

	December 31, 2023
(Dollars in millions)	Notional		Assets		Liabilities
Cash Flow Hedges
Hedging Instruments:
Interest rate contracts	$	5,200	$	—	$	32
Hedged Items:
Variability in cash flows related to debt instruments (primarily loans)	N/A		$	5,200	N/A

Schedule of 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 three months ended March 31, 2024 and 2023:

DERIVATIVE GAINS (LOSSES) ASSOCIATED WITH CASH FLOW HEDGES
	Three Months Ended March 31,
	2024		2023
(Dollars in millions)	Gains (Losses)		Gains (Losses)
Cash Flow Hedges
Hedging Instruments:
Interest rate contracts (a)	$	(39)	$	53
Gain (loss) recognized in other comprehensive income (loss)	(43)		33
Gain (loss) reclassified from AOCI into interest income	13		11

(a)Approximately $20 million of pre-tax losses are expected to be reclassified into earnings in the next twelve months.

Schedule of Derivatives Gains/Losses Associated With Mortgage Banking Hedges

The notional and fair values of these contracts are presented in the table below.

DERIVATIVES ASSOCIATED WITH MORTGAGE BANKING HEDGES
	March 31, 2024
(Dollars in millions)	Notional		Assets		Liabilities
Mortgage Banking Hedges
Option contracts written	$	102	$	2	$	—
Forward contracts written	158		—		1

	December 31, 2023
(Dollars in millions)	Notional		Assets		Liabilities
Mortgage Banking Hedges
Option contracts written	$	55	$	1	$	—
Forward contracts written	93		—		1

The following table summarizes gains (losses) on FHN's derivatives associated with mortgage banking activities for the three months ended March 31, 2024 and 2023:

DERIVATIVE GAINS (LOSSES) ASSOCIATED WITH MORTGAGE BANKING HEDGES
	Three Months Ended March 31,
	2024		2023
(Dollars in millions)	Gains (Losses)		Gains (Losses)
Mortgage Banking Hedges
Option contracts written	$	(1)	$	(1)
Forward contracts written	—		(1)

Schedule of 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 March 31, 2024 and December 31, 2023:

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:
March 31, 2024
Interest rate derivative contracts	$	645	$	—	$	645	$	(76)	$	(553)	$	16
Forward contracts	5		—		5		(2)		—		3
	$	650	$	—	$	650	$	(78)	$	(553)	$	19
December 31, 2023
Interest rate derivative contracts	$	567	$	—	$	567	$	(75)	$	(486)	$	6
Forward contracts	9		—		9		(4)		(3)		2
	$	576	$	—	$	576	$	(79)	$	(489)	$	8

(a)Included in other assets on the Consolidated Balance Sheets. As of March 31, 2024 and December 31, 2023, $1 million and $1 million, respectively, of derivative assets have been excluded from these tables because they are generally not subject to master netting or similar agreements.

Schedule of 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 March 31, 2024 and December 31, 2023:

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:
March 31, 2024
Interest rate derivative contracts	$	791	$	—	$	791	$	(76)	$	(38)	$	677
Forward contracts	4		—		4		(2)		(1)		1
	$	795	$	—	$	795	$	(78)	$	(39)	$	678
December 31, 2023
Interest rate derivative contracts	$	666	$	—	$	666	$	(75)	$	(164)	$	427
Forward contracts	9		—		9		(4)		(5)		—
	$	675	$	—	$	675	$	(79)	$	(169)	$	427

(a)Included in other liabilities on the Consolidated Balance Sheets. As of March 31, 2024 and December 31, 2023, $21 million and $24 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.