Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

FHN performed the required annual goodwill impairment test as of October 1, 2024. The annual impairment test did not indicate impairment in any of FHN’s reporting units as of the testing date. Following the testing date, management evaluated the events and circumstances that could indicate that goodwill might be impaired and concluded that it is not more likely than not that goodwill was impaired. If there are any triggering events between annual evaluations, management will evaluate whether an interim impairment analysis is warranted.

Accounting estimates and assumptions were made about FHN’s future performance and cash flows, as well as other prevailing market factors (e.g., interest rates, economic trends, etc.) when determining fair value as part of the goodwill impairment test. While management used the best information available to estimate future performance for each reporting unit, future adjustments to management’s projections may be necessary if conditions differ substantially from the assumptions used in making the estimates.

As further discussed in Note 19 - Business Segment Information, FHN reorganized its management reporting structure during the fourth quarter of 2024 and, accordingly, its segment reporting structure and reporting units used in the assessment of goodwill impairment. In

connection with the reorganization, goodwill was reallocated to segments and reporting units.

The following is a summary of goodwill by reportable segment included in the Consolidated Balance Sheets as of December 31, 2024.

Table 8.6.1

GOODWILL


(Dollars in millions)	Commercial, Consumer & Wealth		Wholesale		Total
December 31, 2021	$	1,217	$	294	$	1,511
Additions	—		—		—
December 31, 2022	$	1,217	$	294	$	1,511
Additions	—		—		—
Divestitures (a)	—		(1)		(1)
December 31, 2023	$	1,217	$	293	$	1,510
Additions	—		—		—
December 31, 2024	$	1,217	$	293	$	1,510

(a)Reduction in goodwill is related to the divestiture of FHN Financial Main Street Advisors assets in December 2023.

Other intangible assets

The following table, which excludes fully amortized intangibles, presents other intangible assets included in the Consolidated Balance Sheets.

Table 8.6.2

OTHER INTANGIBLE ASSETS


	December 31, 2024						December 31, 2023
(Dollars in millions)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Value		Gross Carrying Amount		Accumulated Amortization		Net Carrying Value
Core deposit intangibles	$	356	$	(233)	$	123	$	368	$	(208)	$	160
Client relationships	32		(18)		14		32		(16)		16
Other (a)	27		(21)		6		27		(17)		10
Total	$	415	$	(272)	$	143	$	427	$	(241)	$	186

(a)Includes non-compete covenants and purchased credit card intangible assets. Also includes state banking licenses which are not subject to amortization.

Amortization expense was $44 million, $47 million, and $51 million for the years ended December 31, 2024, 2023 and 2022, respectively. The following table shows the aggregated amortization expense estimated, as of December 31, 2024, for the next five years.

Table 8.6.3

ESTIMATED AMORTIZATION EXPENSE


(Dollars in millions)
2025	$	38
2026	33
2027	29
2028	17
2029	15