XML 36 R20.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Business Segment Information
 6 Months Ended
Jun. 30, 2024
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 commercial and consumer 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, and mortgage. 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. During the first quarter of 2024, FHN made organizational changes in its internal management structure, and accordingly, its segment reporting structure. Prior period segment information has been reclassified to conform to the current period presentation. 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, 2024 and 2023:
SEGMENT FINANCIAL INFORMATION
Three Months Ended June 30, 2024
(Dollars in millions)Regional BankingSpecialty BankingCorporateConsolidated
Net interest income (expense)$522 $158 $(51)$629 
Provision for credit losses57 1 (3)55 
Noninterest income109 64 13 186 
Noninterest expense (a)333 103 64 500 
Income (loss) before income taxes241 118 (99)260 
Income tax expense (benefit)56 29 (29)56 
Net income (loss)$185 $89 $(70)$204 
Average assets$43,519 $24,592 $13,610 $81,721 

Three Months Ended June 30, 2023
(Dollars in millions)Regional BankingSpecialty BankingCorporateConsolidated
Net interest income (expense)$585 $156 $(111)$630 
Provision for credit losses36 18 (4)50 
Noninterest income (b)106 50 244 400 
Noninterest expense (a)313 95 147 555 
Income (loss) before income taxes342 93 (10)425 
Income tax expense (benefit)80 23 (7)96 
Net income (loss)$262 $70 $(3)$329 
Average assets$42,302 $23,329 $16,673 $82,304 
(a)2024 includes $3 million of restructuring costs and an FDIC special assessment of $2 million in the Corporate segment. 2023 includes a $50 million contribution to the First Horizon Foundation, $30 million in merger and integration expenses related to the TD Transaction, and $15 million in Visa derivative valuation expenses in the Corporate segment.
(b)2023 includes a $225 million gain on merger termination in the Corporate segment.
Six Months Ended June 30, 2024
(Dollars in millions)Regional BankingSpecialty BankingCorporateConsolidated
Net interest income (expense)$1,054 $310 $(111)$1,253 
Provision for credit losses86 23 (4)105 
Noninterest income214 137 30 381 
Noninterest expense (a)657 207 151 1,015 
Income (loss) before income taxes525 217 (228)514 
Income tax expense (benefit)122 53 (62)113 
Net income (loss)$403 $164 $(166)$401 
Average assets$43,283 $24,194 $14,005 $81,482 
Six Months Ended June 30, 2023
(Dollars in millions)Regional BankingSpecialty BankingCorporateConsolidated
Net interest income (expense)$1,146 $307 $(135)$1,318 
Provision for credit losses72 33 (5)100 
Noninterest income (b)210 106 255 571 
Noninterest expense (a)626 195 212 1,033 
Income (loss) before income taxes658 185 (87)756 
Income tax expense (benefit)154 45 (28)171 
Net income (loss)$504 $140 $(59)$585 
Average assets$41,800 $22,978 $15,804 $80,582 
(a)2024 includes $9 million in restructuring costs and an FDIC special assessment of $12 million in the Corporate segment. 2023 includes a $50 million contribution to the First Horizon Foundation, $51 million in merger and integration expenses related to the TD Transaction, and $15 million in Visa derivative valuation expenses in the Corporate segment.
(b)2023 includes a $225 million gain on merger termination 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, 2024 and 2023:

NONINTEREST INCOME DETAIL BY SEGMENT
Three Months Ended June 30, 2024
(Dollars in millions)Regional BankingSpecialty BankingCorporateConsolidated
Noninterest income:
Deposit transactions and cash management$39 $3 $2 $44 
Fixed income (a)— 40 — 40 
Brokerage, management fees and commissions25 — — 25 
Card and digital banking fees17 1 2 20 
Other service charges and fees6 8 — 14 
Trust services and investment management12 — — 12 
Mortgage banking income— 10 — 10 
Securities gains (losses), net (b)— — 1 1 
Other income (c)10 2 8 20 
Total noninterest income$109 $64 $13 $186 
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 fees18 1 2 21 
Other service charges and fees6 8 — 14 
Trust services and investment management12 — — 12 
Mortgage banking income— 6 — 6 
Gain on merger termination— — 225 225 
Other income (c)8 1 16 25 
Total noninterest income$106 $50 $244 $400 
(a)2024 and 2023 each includes $9 million 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.
Six Months Ended June 30, 2024
(Dollars in millions)Regional BankingSpecialty BankingCorporateConsolidated
Noninterest income:
Deposit transactions and cash management$78 $6 $4 $88 
Fixed income (a)— 92 — 92 
Brokerage, management fees and commissions49 — — 49 
Card and digital banking fees34 1 3 38 
Other service charges and fees12 15 — 27 
Trust services and investment management24 — — 24 
Mortgage banking income— 19 — 19 
Securities gains (losses), net (b)— — 1 1 
Other income (c)17 4 22 43 
Total noninterest income$214 $137 $30 $381 
Six Months Ended June 30, 2023
(Dollars in millions)Regional BankingSpecialty BankingCorporateConsolidated
Noninterest income:
Deposit transactions and cash management$77 $6 $4 $87 
Fixed income (a)— 70 (1)69 
Brokerage, management fees and commissions44 — — 44 
Card and digital banking fees35 1 4 40 
Other service charges and fees13 14 — 27 
Trust services and investment management24 — — 24 
Mortgage banking income— 11 — 11 
Gain on merger termination— — 225 225 
Securities gains (losses), net (b)— — 1 1 
Other income (c)17 4 22 43 
Total noninterest income$210 $106 $255 $571 
(a)2024 and 2023 includes $20 million and $19 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.