Variable Interest Entities (Tables)

12 Months Ended

Dec. 31, 2024

Variable Interest Entities [Abstract]

Schedule of VIEs Consolidated by FHN

The following table summarizes the carrying value of assets and liabilities associated with rabbi trusts used for deferred compensation plans which are consolidated by FHN as of December 31, 2024 and 2023.

Table 8.20.1

CONSOLIDATED VIEs

(Dollars in millions)	December 31, 2024		December 31, 2023
Assets:
Other assets	$	195	$	177
Liabilities:
Other liabilities	$	165	$	150

Schedule of the Impact of Qualifying LIHTC Investments

The following table summarizes the impact to income tax expense on the Consolidated Statements of Income for the years ended December 31, 2024, 2023, and 2022 for investments accounted for under the PAM. The impact of these investments is included in other operating activities, net in the Consolidated Statements of Cash Flows.

Table 8.20.2

TAX CREDIT IMPACTS ON TAX EXPENSE

(Dollars in millions)	2024		2023		2022
Income tax expense (benefit):
Amortization of qualifying investments	$	65	$	54	$	44
Tax credits	(70)		(55)		(48)
Other tax benefits related to qualifying investments	(9)		(13)		(12)

Schedule of VIEs not Consolidated by FHN

The following tables summarize FHN’s nonconsolidated VIEs as of December 31, 2024 and 2023.

Table 8.20.3

NONCONSOLIDATED VIEs AT DECEMBER 31, 2024

(Dollars in millions)	Maximum Loss Exposure		Liability Recognized		Classification
Type:
Low income housing partnerships	$	617	$	222	(a)
Other tax credit investments (b)	90		73		Other assets
Small issuer trust preferred holdings (c)	171		—		Loans and leases
On-balance sheet trust preferred securitization	26		88		(d)
Holdings of agency mortgage-backed securities (c)	8,017		—		(e)
Commercial loan modifications to borrowers experiencing financial difficulty (f)	381		—		Loans and leases
Proprietary trust preferred issuances (g)	—		167		Term borrowings

(a)    Maximum loss exposure represents $395 million of current investments and $222 million of accrued contractual funding commitments. Accrued funding commitments represent unconditional contractual obligations for future funding events and are recognized in other liabilities. FHN currently expects to be required to fund substantially all of these accrued commitments by the end of 2026.

(b)    Maximum loss exposure represents the value of current investments.

(c)    Maximum loss exposure represents the value of current investments. A liability is not recognized as FHN is solely a holder of the trusts’ securities.

(d)    Includes $113 million classified as loans and leases and $2 million classified as trading securities, which are offset by $88 million classified as term borrowings.

(e)    Includes $278 million classified as trading securities, $1.3 billion classified as securities held to maturity, and $6.5 billion classified as securities available for sale.

(f)    Maximum loss exposure represents $381 million of current receivables with no additional contractual funding commitments on loans related to commercial loan modifications to borrowers experiencing financial difficulty.

(g)    No exposure to loss due to nature of FHN's involvement.

Table 8.20.4

NONCONSOLIDATED VIEs AT DECEMBER 31, 2023

(Dollars in millions)	Maximum Loss Exposure		Liability Recognized		Classification
Type:
Low income housing partnerships	$	587	$	223	(a)
Other tax credit investments (b)	79		64		Other assets
Small issuer trust preferred holdings (c)	173		—		Loans and leases
On-balance sheet trust preferred securitization	26		88		(d)
Holdings of agency mortgage-backed securities (c)	8,402		—		(e)
Commercial loan modifications to borrowers experiencing financial difficulty (f)	129		—		Loans and leases
Proprietary trust preferred issuances (g)	—		167		Term borrowings

(a)Maximum loss exposure represents $364 million of current investments and $223 million of accrued contractual funding commitments. Accrued funding commitments represent unconditional contractual obligations for future funding events and are recognized in other liabilities. FHN currently expects to be required to fund substantially all of these accrued commitments by the end of 2026.

(b)Maximum loss exposure represents the value of current investments.

(c)Maximum loss exposure represents the value of current investments. A liability is not recognized as FHN is solely a holder of the trusts’ securities.

(d)Includes $113 million classified as loans and leases and $2 million classified as trading securities, which are offset by $88 million classified as term borrowings.

(e)Includes $450 million classified as trading securities, $1.3 billion classified as securities held to maturity, and $6.6 billion classified as securities available for sale.

(f)Maximum loss exposure represents $129 million of current receivables with no additional contractual funding commitments on loans related to commercial loan modifications to borrowers experiencing financial difficulty.

(g)No exposure to loss due to nature of FHN's involvement.