Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Schedule of Components of Consolidated Statements of Income and Equity

The aggregate amount of income taxes included in the Consolidated Statements of Income and the Consolidated Statements of Changes in Equity for the years ended December 31 were as follows.

Table 8.14.1

INCOME TAX EXPENSE

(Dollars in millions)	2024		2023		2022
Consolidated Statements of Income:
Income tax expense	$	211	$	212	$	247
Consolidated Statements of Changes in Equity:
Income tax expense (benefit) related to:
Net unrealized gains (losses) on pension and other postretirement plans	7		(1)		(5)
Net unrealized gains (losses) on securities available for sale	17		44		(302)
Net unrealized gains (losses) on cash flow hedges	(5)		15		(42)
Total	$	230	$	270	$	(102)

Schedule of Components of Income Tax Expense/(Benefit)

The components of income tax expense (benefit) for the years ended December 31, were as follows.

Table 8.14.2

INCOME TAX EXPENSE COMPONENTS

(Dollars in millions)	2024		2023		2022
Current:
Federal	$	204	$	140	$	123
State	24		28		33
Deferred:
Federal	(14)		37		87
State	(3)		7		4
Total	$	211	$	212	$	247

Schedule of Computation of Income Tax Expense Differed from the Amounts Computed by Applying Statutory Federal Income Tax Rate to Income/(Loss) from Continuing Operations Before Income Taxes

A reconciliation of expected income tax expense (benefit) at the federal statutory rate of 21% for 2024, 2023, and 2022, respectively, to total income tax expense follows.

Table 8.14.3

RECONCILIATION FROM STATUTORY RATES

(Dollars in millions)	2024			2023			2022
Federal income tax rate	21		%	21		%	21		%
Tax computed at statutory rate	$	211		$	237		$	243
Increase (decrease) resulting from:
State income taxes, net of federal income tax benefit	20			34			31
BOLI	(5)			(6)			(4)
Tax-exempt interest	(12)			(12)			(10)
FDIC premium	12			11			7
Non-deductible expenses	8			9			4
LIHTC credits and benefits, net of amortization	(13)			(15)			(16)
Other tax credits	(1)			(5)			(4)
Other changes in unrecognized tax benefits	(2)			(50)			(2)
Termination of BOLI policies	—			21			—
Other	(7)			(12)			(2)
Total	$	211		$	212		$	247

Schedule of Net DTA Balances Related to Income Tax Carryforwards

As of December 31, 2024, FHN had net deferred tax asset balances related to federal and state income tax carryforwards of $29 million and $3 million, respectively, which will expire at various dates as follows.

Table 8.14.4

TAX CARRYFORWARD DTA EXPIRATION DATES

(Dollars in millions)	Expiration Dates	Net Deferred Tax Asset Balance
Losses - federal	2028 - 2035	$	29
Net operating losses - states	2025 - 2034	2
Net operating losses - states	2035 - 2041	1

Schedule of Deferred Tax Assets and Liabilities

Temporary differences which gave rise to deferred tax assets and deferred tax liabilities on December 31, 2024 and 2023 were as follows.

Table 8.14.5

COMPONENTS OF DTAs & DTLs

(Dollars in millions)	2024		2023
Deferred tax assets:
Securities available for sale and financial instruments (a)	$	284	$	296
Loan valuations and loss reserves	152		107
Employee benefits	119		128
Lease liability	82		85
Depreciation and amortization	54		37
Accrued expenses	20		21
Federal loss carryforwards	29		32
State loss carryforwards	3		3
Other	25		28
Gross deferred tax assets	768		737
Deferred tax liabilities:
Leasing	$	363	$	316
ROU lease asset	73		76
Other intangible assets	71		75
Prepaid expenses	23		20
Equity investments	2		31
Other	9		4
Gross deferred tax liabilities	541		522
Net deferred tax assets	$	227	$	215

(a)    Tax effects of unrealized gains and losses are tracked on a security-by-security basis.

Schedule of Rollforward of Unrecognized Tax Benefits

The rollforward of unrecognized tax benefits is shown in the following table.

Table 8.14.6

ROLLFORWARD OF UNRECOGNIZED TAX BENEFITS

(Dollars in millions)
Balance at December 31, 2022	$	89
Increases related to prior year tax positions	1
Increases related to current year tax positions	2
Settlements	(76)
Lapse of statutes	(1)
Balance at December 31, 2023	$	15
Increases related to prior year tax positions	2
Increases related to current year tax positions	3
Lapse of statutes	(7)
Balance at December 31, 2024	$	13