Investment Securities

6 Months Ended

Jun. 30, 2025

The following tables summarize FHN’s investment securities as of June 30, 2025 and December 31, 2024:


INVESTMENT SECURITIES AT JUNE 30, 2025
	June 30, 2025
(Dollars in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities available for sale:

Government agency issued MBS	$	4,139	$	6	$	(399)	$	3,746
Government agency issued CMO	3,188		4		(260)		2,932
Other U.S. government agencies	1,223		2		(123)		1,102

States and municipalities	376		—		(39)		337
Total securities available for sale (a)	$	8,926	$	12	$	(821)	$	8,117

Securities held to maturity:
Government agency issued MBS	$	782	$	—	$	(92)	$	690
Government agency issued CMO	463		—		(70)		393
Total securities held to maturity (a)	$	1,245	$	—	$	(162)	$	1,083

(a)Includes $7.0 billion of securities available for sale and $1.2 billion of securities held to maturity pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes.


INVESTMENT SECURITIES AT DECEMBER 31, 2024
	December 31, 2024
(Dollars in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities available for sale:

Government agency issued MBS	$	4,223	$	1	$	(522)	$	3,702
Government agency issued CMO	3,079		—		(312)		2,767
Other U.S. government agencies	1,234		—		(161)		1,073

States and municipalities	394		—		(40)		354
Total securities available for sale (a)	$	8,930	$	1	$	(1,035)	$	7,896

Securities held to maturity:
Government agency issued MBS	$	804	$	—	$	(109)	$	695
Government agency issued CMO	466		—		(78)		388
Total securities held to maturity (a)	$	1,270	$	—	$	(187)	$	1,083

(a)Includes $6.9 billion of securities available for sale and $1.3 billion of securities held to maturity pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes.

The amortized cost and fair value by contractual maturity for the debt securities portfolio as of June 30, 2025 is provided below:


DEBT SECURITIES PORTFOLIO MATURITIES
	Held to Maturity				Available for Sale
(Dollars in millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Within 1 year	$	—	$	—	$	15	$	15
After 1 year through 5 years	—		—		93		88
After 5 years through 10 years	—		—		318		293
After 10 years	—		—		1,173		1,043
Subtotal	—		—		1,599		1,439
Government agency issued MBS and CMO (a)	1,245		1,083		7,327		6,678
Total	$	1,245	$	1,083	$	8,926	$	8,117

(a)Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

There were no sales of AFS securities for the three and six months ended June 30, 2025 and 2024.

The following tables provide information on investments within the available-for-sale portfolio that had unrealized losses as of June 30, 2025 and December 31, 2024:

AFS INVESTMENT SECURITIES WITH UNREALIZED LOSSES


	As of June 30, 2025
	Less than 12 months				12 months or longer				Total
(Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses

Government agency issued MBS	$	166	$	(1)	$	2,933	$	(398)	$	3,099	$	(399)
Government agency issued CMO	538		(1)		1,682		(259)		2,220		(260)
Other U.S. government agencies	104		(1)		818		(122)		922		(123)

States and municipalities	76		(1)		241		(38)		317		(39)
Total	$	884	$	(4)	$	5,674	$	(817)	$	6,558	$	(821)


	As of December 31, 2024
	Less than 12 months				12 months or longer				Total
(Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses

Government agency issued MBS	$	663	$	(9)	$	2,992	$	(513)	$	3,655	$	(522)
Government agency issued CMO	675		(2)		1,744		(310)		2,419		(312)
Other U.S. government agencies	210		(6)		863		(155)		1,073		(161)

States and municipalities	66		(1)		256		(39)		322		(40)
Total	$	1,614	$	(18)	$	5,855	$	(1,017)	$	7,469	$	(1,035)

FHN has evaluated all AFS debt securities that were in unrealized loss positions in accordance with its accounting policy for recognition of credit losses. No AFS debt securities were determined to have credit losses. Total AIR not included in the fair value or amortized cost basis of AFS debt securities was $28 million and $29 million as of June 30, 2025 and December 31, 2024, respectively. Consistent with FHN's review of the related securities, there were no credit-related write-downs of AIR for AFS debt securities during the reporting periods. Additionally, for AFS debt securities with unrealized losses, FHN does not intend to sell them, and it is more likely than not that FHN will not be required to sell them prior to recovery. Therefore, no write-downs of these investments to fair value occurred during the reporting periods. There were no transfers to or from AFS or HTM during the three and six months ended June 30, 2025 and 2024.

For HTM securities, an allowance for credit losses is required to absorb estimated lifetime credit losses. Total AIR not included in the fair value or amortized cost basis of HTM debt securities was $3 million as of both June 30, 2025 and December 31, 2024. FHN has assessed the risk of credit loss and has determined that no allowance for credit losses for HTM securities was necessary as of June 30, 2025 and December 31, 2024. The evaluation of credit risk includes consideration of third-party and government guarantees (both explicit and implicit), senior or subordinated status, credit ratings of the issuer, the effects of interest rate changes since purchase and observable market information such as issuer-specific credit spreads.

The carrying amount of equity investments without a readily determinable fair value was $109 million and $96 million at June 30, 2025 and December 31, 2024, respectively. The year-to-date 2025 and 2024 gross amounts of upward and downward valuation adjustments were not significant.

Net unrealized gains of $6 million and $3 million were recognized in the three and six months ended June 30, 2025, respectively, for equity investments with readily determinable fair values. Net unrealized gains of $2 million and $7 million were recognized in the three and six months ended June 30, 2024, respectively, for equity investments with readily determinable fair values.