Business Segment Information (Tables)

6 Months Ended

Jun. 30, 2024

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, 2024 and 2023:


SEGMENT FINANCIAL INFORMATION
	Three Months Ended June 30, 2024
(Dollars in millions)	Regional Banking		Specialty Banking		Corporate		Consolidated
Net interest income (expense)	$	522	$	158	$	(51)	$	629
Provision for credit losses	57		1		(3)		55
Noninterest income	109		64		13		186
Noninterest expense (a)	333		103		64		500
Income (loss) before income taxes	241		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 Banking		Specialty Banking		Corporate		Consolidated
Net interest income (expense)	$	585	$	156	$	(111)	$	630
Provision for credit losses	36		18		(4)		50
Noninterest income (b)	106		50		244		400
Noninterest expense (a)	313		95		147		555
Income (loss) before income taxes	342		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 Banking		Specialty Banking		Corporate		Consolidated
Net interest income (expense)	$	1,054	$	310	$	(111)	$	1,253
Provision for credit losses	86		23		(4)		105
Noninterest income	214		137		30		381
Noninterest expense (a)	657		207		151		1,015
Income (loss) before income taxes	525		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 Banking		Specialty Banking		Corporate		Consolidated
Net interest income (expense)	$	1,146	$	307	$	(135)	$	1,318
Provision for credit losses	72		33		(5)		100
Noninterest income (b)	210		106		255		571
Noninterest expense (a)	626		195		212		1,033
Income (loss) before income taxes	658		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 Banking		Specialty Banking		Corporate		Consolidated
Noninterest income:
Deposit transactions and cash management	$	39	$	3	$	2	$	44
Fixed income (a)	—		40		—		40
Brokerage, management fees and commissions	25		—		—		25
Card and digital banking fees	17		1		2		20
Other service charges and fees	6		8		—		14
Trust services and investment management	12		—		—		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 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	18		1		2		21
Other service charges and fees	6		8		—		14
Trust services and investment management	12		—		—		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 Banking		Specialty Banking		Corporate		Consolidated
Noninterest income:
Deposit transactions and cash management	$	78	$	6	$	4	$	88
Fixed income (a)	—		92		—		92
Brokerage, management fees and commissions	49		—		—		49
Card and digital banking fees	34		1		3		38
Other service charges and fees	12		15		—		27
Trust services and investment management	24		—		—		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 Banking		Specialty Banking		Corporate		Consolidated
Noninterest income:
Deposit transactions and cash management	$	77	$	6	$	4	$	87
Fixed income (a)	—		70		(1)		69
Brokerage, management fees and commissions	44		—		—		44
Card and digital banking fees	35		1		4		40
Other service charges and fees	13		14		—		27
Trust services and investment management	24		—		—		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.