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Loans and Leases
 6 Months Ended
Jun. 30, 2025
Receivables [Abstract]  
Loans and Leases Loans and Leases
The loan and lease portfolio is disaggregated into portfolio segments and then further disaggregated into classes for certain disclosures. GAAP defines a portfolio segment as the level at which an entity develops and documents a systematic method for determining its allowance for credit losses. A class is generally a disaggregation of a portfolio segment and is generally determined based on risk characteristics of the loan and FHN’s method for monitoring and assessing credit risk and performance. FHN's loan and lease portfolio segments are commercial and consumer. The classes of loans and leases are: (1) commercial, financial, and industrial, which includes
commercial and industrial loans and leases and loans to mortgage companies, (2) commercial real estate, (3) consumer real estate, which includes both real estate installment and home equity lines of credit, and (4) credit card and other.
The following table provides the amortized cost basis of loans and leases by portfolio segment and class as of June 30, 2025 and December 31, 2024, excluding accrued interest of $260 million and $271 million, respectively, which is included in other assets in the Consolidated Balance Sheets.
LOANS AND LEASES BY PORTFOLIO SEGMENT
(Dollars in millions)June 30, 2025December 31, 2024
Commercial:
Commercial and industrial (a)$30,301 $29,957 
Loans to mortgage companies4,058 3,471 
   Total commercial, financial, and industrial 34,359 33,428 
Commercial real estate13,936 14,421 
Consumer:
HELOC2,128 2,092 
Real estate installment loans12,240 11,955 
   Total consumer real estate14,368 14,047 
Credit card and other (b)597 669 
Loans and leases$63,260 $62,565 
Allowance for loan and lease losses(814)(815)
Net loans and leases$62,446 $61,750 
(a)Includes equipment financing leases of $1.4 billion for both June 30, 2025 and December 31, 2024.
(b)Includes $162 million and $174 million of commercial credit card balances as of June 30, 2025 and December 31, 2024, respectively.

Restrictions
Loans and leases with carrying values of $45.5 billion and $45.8 billion were pledged as collateral for borrowings at June 30, 2025 and December 31, 2024, respectively.
Concentrations of Credit Risk
Most of FHN’s business activity is with clients located in the southern United States. FHN’s lending activity is concentrated in its market areas within those states. As of June 30, 2025, FHN had loans to mortgage companies of $4.1 billion and loans to finance and insurance companies of $3.7 billion. As a result, 23% of the C&I portfolio is sensitive to impacts on the financial services industry.
Credit Quality Indicators
FHN employs a dual grade commercial risk grading methodology to assign an estimate for the probability of default and the loss given default for each commercial loan using factors specific to various industry, portfolio, or product segments that result in a rank ordering of risk and the assignment of grades PD 1 to PD 16. This credit grading
system is intended to identify and measure the credit quality of the loan and lease portfolio by analyzing the migration between grading categories. It is also integral to the estimation methodology utilized in determining the ALLL since an allowance is established for pools of commercial loans based on the credit grade assigned. Each PD grade corresponds to an estimated one-year default probability percentage. PD grades are continually evaluated but require a formal scorecard annually.
PD 1 through PD 12 are “pass” grades. PD grades 13-16 correspond to the regulatory-defined categories of special mention (13), substandard (14), doubtful (15), and loss (16). Special mention commercial loans and leases have potential weaknesses that, if left uncorrected, may result in deterioration of FHN's credit position at some future date. Substandard commercial loans and leases have well-defined weaknesses and are characterized by the distinct possibility that FHN will sustain some loss if the deficiencies are not corrected. Doubtful commercial loans and leases have the same weaknesses as substandard loans and leases with the added characteristics that the
probability of loss is high and collection of the full amount is improbable.
The following tables provide the amortized cost basis of the commercial loan portfolio by year of origination and
credit quality indicator as of June 30, 2025 and December 31, 2024.
C&I PORTFOLIO
June 30, 2025
(Dollars in millions)20252024202320222021Prior to 2021LMC (a)Revolving
 Loans		Revolving
Loans Converted
to Term Loans		Total
Credit Quality Indicator:
Pass (PD grades 1 through 12)$1,850 $5,466 $2,337 $3,171 $1,993 $4,444 $4,056 $8,972 $185 $32,474 
Special Mention (PD grade 13)1 112 59 85 38 86 2 193 14 590 
Substandard, Doubtful, or Loss (PD grades 14,15, and 16)13 103 154 250 161 237 — 349 28 1,295 
Total C&I loans$1,864 $5,681 $2,550 $3,506 $2,192 $4,767 $4,058 $9,514 $227 $34,359 
December 31, 2024
(Dollars in millions)20242023202220212020Prior to 2020LMC (a)Revolving
 Loans		Revolving
Loans Converted
to Term Loans		Total
Credit Quality Indicator:
Pass (PD grades 1 through 12)$5,590 $2,607 $3,649 $2,336 $1,055 $3,853 $3,471 $8,784 $248 $31,593 
Special Mention (PD grade 13)106 27 78 47 33 57 — 279 2 629 
Substandard, Doubtful, or Loss (PD grades 14,15, and 16)84 184 113 179 33 169 — 383 61 1,206 
Total C&I loans$5,780 $2,818 $3,840 $2,562 $1,121 $4,079 $3,471 $9,446 $311 $33,428 
(a) LMC includes non-revolving commercial lines of credit to qualified mortgage companies primarily for the temporary warehousing of eligible mortgage loans prior to the borrower's sale of those mortgage loans to third-party investors. The loans are of short duration with maturities less than one year.


CRE PORTFOLIO
June 30, 2025
(Dollars in millions)20252024202320222021Prior to 2021Revolving
 Loans		Revolving
Loans Converted
to Term Loans		Total
Credit Quality Indicator:
Pass (PD grades 1 through 12) $348 $856 $1,570 $2,832 $2,274 $3,864 $344 $90 $12,178 
Special Mention (PD grade 13)— — 8 198 286 129 43 — 664 
Substandard, Doubtful, or Loss (PD grades 14,15, and 16)3 4 48 381 172 480 6 — 1,094 
Total CRE loans$351 $860 $1,626 $3,411 $2,732 $4,473 $393 $90 $13,936 

December 31, 2024
(Dollars in millions)20242023202220212020Prior to 2020Revolving
 Loans		Revolving
Loans Converted
to Term Loans		Total
Credit Quality Indicator:
Pass (PD grades 1 through 12)$694 $1,296 $3,282 $2,778 $894 $3,281 $340 $47 $12,612 
Special Mention (PD grade 13)— 42 280 198 37 130 — 1 688 
Substandard, Doubtful, or Loss (PD grades 14,15, and 16)3 31 251 278 116 436 6 — 1,121 
Total CRE loans$697 $1,369 $3,813 $3,254 $1,047 $3,847 $346 $48 $14,421 
The consumer portfolio is comprised primarily of smaller-balance loans which are very similar in nature in that most are standard products and are backed by residential real estate. Because of the similarities of consumer loan types, FHN is able to utilize the FICO score, among other attributes, to assess the credit quality of consumer borrowers. FICO scores are refreshed on a quarterly basis in an attempt to reflect the recent risk profile of the borrowers. Accruing delinquency amounts are indicators of asset quality within the credit card and other consumer portfolio.
The following table reflects the amortized cost basis by year of origination and refreshed FICO scores for consumer
real estate loans as of June 30, 2025 and December 31, 2024. Within consumer real estate, classes include HELOC and real estate installment loans. HELOCs are loans which during their draw period are classified as revolving loans. Once the draw period ends and the loan enters its repayment period, the loan converts to a term loan and is classified as a revolving loan converted to a term loan. All loans classified in the following table as revolving loans or revolving loans converted to term loans are HELOCs. Real estate installment loans are originated as fixed term loans and are classified below in their vintage year. All loans in the following table classified in a vintage year are real estate installment loans.

CONSUMER REAL ESTATE PORTFOLIO
June 30, 2025
(Dollars in millions)20252024202320222021Prior to 2021Revolving
 Loans		Revolving
Loans Converted
to Term Loans		Total
FICO score 740 or greater$636 $996 $1,436 $1,931 $1,512 $2,054 $1,526 $65 $10,156 
FICO score 720-73970 142 189 263 202 346 174 17 1,403 
FICO score 700-71960 98 137 209 167 267 129 14 1,081 
FICO score 660-69970 132 153 172 95 305 114 19 1,060 
FICO score 620-6594 10 10 17 19 111 22 6 199 
FICO score less than 620 12 23 18 18 23 333 27 15 469 
Total consumer real estate loans$852 $1,401 $1,943 $2,610 $2,018 $3,416 $1,992 $136 $14,368 
December 31, 2024
(Dollars in millions)20242023202220212020Prior to 2020Revolving
 Loans		Revolving
Loans Converted
to Term Loans		Total
FICO score 740 or greater$1,045 $1,493 $2,009 $1,592 $675 $1,554 $1,430 $56 $9,854 
FICO score 720-739149 197 270 213 99 271 175 17 1,391 
FICO score 700-71998 140 217 175 72 242 150 18 1,112 
FICO score 660-699133 160 183 100 75 294 146 25 1,116 
FICO score 620-65911 10 17 21 20 122 30 9 240 
FICO score less than 620 18 22 19 18 18 203 25 11 334 
Total consumer real estate loans$1,454 $2,022 $2,715 $2,119 $959 $2,686 $1,956 $136 $14,047 
The following table reflects the amortized cost basis by year of origination and refreshed FICO scores for credit card and other loans as of June 30, 2025 and December 31, 2024.

CREDIT CARD & OTHER PORTFOLIO
June 30, 2025
(Dollars in millions)20252024202320222021Prior to 2021Revolving
 Loans		Revolving
Loans Converted
to Term Loans 		Total
FICO score 740 or greater$16 $13 $12 $5 $3 $15 $184 $9 $257 
FICO score 720-7392 1 1 1 — 2 17 3 27 
FICO score 700-7192 1 1 1 — 2 17 — 24 
FICO score 660-6991 1 1 — — 2 15 1 21 
FICO score 620-659— 1 1 — — 1 8 — 11 
FICO score less than 620 3 6 6 4 3 59 175 1 257 
Total credit card and other loans$24 $23 $22 $11 $6 $81 $416 $14 $597 
December 31, 2024
(Dollars in millions)20242023202220212020Prior to 2020Revolving
 Loans		Revolving
Loans Converted
to Term Loans		Total
FICO score 740 or greater$21 $22 $10 $4 $2 $19 $197 $8 $283 
FICO score 720-7397 3 1 1 — 3 20 2 37 
FICO score 700-7191 2 2 — — 2 14 — 21 
FICO score 660-6991 2 1 — — 3 15 4 26 
FICO score 620-6592 1 — — — 1 9 — 13 
FICO score less than 620 8 8 5 4 4 78 181 1 289 
Total credit card and other loans$40 $38 $19 $9 $6 $106 $436 $15 $669 

Nonaccrual and Past Due Loans and Leases
Loans and leases are placed on nonaccrual if it becomes evident that full collection of principal and interest is at risk, impairment has been recognized as a partial charge-off of principal balance due to insufficient collateral value and past due status, or on a case-by-case basis if FHN continues to receive payments but there are other borrower-specific issues. Included in nonaccrual are loans
for which FHN continues to receive payments including residential real estate loans where the borrower has been discharged of personal obligation through bankruptcy.
Past due loans are loans contractually past due as to interest or principal payments, but which have not yet been put on nonaccrual status.
The following table reflects accruing and non-accruing loans and leases by class on June 30, 2025 and December 31, 2024.
ACCRUING & NON-ACCRUING LOANS AND LEASES
June 30, 2025
 AccruingNon-Accruing 
(Dollars in millions)Current30-89
Days
Past Due		90+
Days
Past Due		Total
Accruing		Current30-89
Days
Past Due		90+
Days
Past Due		Total
Non-
Accruing		Total
Loans and Leases
Commercial, financial, and industrial:
C&I (a) $30,025 $50 $1 $30,076 $166 $4 $55 $225 $30,301 
Loans to mortgage companies4,058 — — 4,058 — — — — 4,058 
Total commercial, financial, and industrial34,083 50 1 34,134 166 4 55 225 34,359 
Commercial real estate:
CRE (b)13,674 26 — 13,700 124 95 17 236 13,936 
Consumer real estate:
HELOC (c)2,084 12 3 2,099 18 4 7 29 2,128 
Real estate installment loans (d)12,112 23 3 12,138 34 19 49 102 12,240 
Total consumer real estate14,196 35 6 14,237 52 23 56 131 14,368 
Credit card and other:
Credit card245 1 1 247 — — — — 247 
Other347 2 — 349 — — 1 1 350 
Total credit card and other592 3 1 596 — — 1 1 597 
Total loans and leases$62,545 $114 $8 $62,667 $342 $122 $129 $593 $63,260 
December 31, 2024
 AccruingNon-Accruing 
(Dollars in millions)Current30-89
Days
Past Due		90+
Days
Past Due		Total
Accruing		Current30-89
Days
Past Due		90+
Days
Past Due		Total
Non-
Accruing		Total
Loans and Leases
Commercial, financial, and industrial:
C&I (a) $29,751 $32 $1 $29,784 $101 $26 $46 $173 $29,957 
Loans to mortgage companies3,471 — — 3,471 — — — — 3,471 
Total commercial, financial, and industrial33,222 32 1 33,255 101 26 46 173 33,428 
Commercial real estate:
CRE (b)14,124 3 — 14,127 221 10 63 294 14,421 
Consumer real estate:
HELOC (c)2,045 11 2 2,058 19 4 11 34 2,092 
Real estate installment loans (d)11,800 39 17 11,856 31 10 58 99 11,955 
Total consumer real estate13,845 50 19 13,914 50 14 69 133 14,047 
Credit card and other:
Credit card262 2 1 265 — — — — 265 
Other400 2 — 402 — 1 1 2 404 
Total credit card and other662 4 1 667 — 1 1 2 669 
Total loans and leases$61,853 $89 $21 $61,963 $372 $51 $179 $602 $62,565 
(a)    $207 million and $172 million of C&I loans are nonaccrual loans that have been specifically reviewed for impairment with no related allowance in 2025 and 2024, respectively.
(b)    $228 million and $287 million of CRE loans are nonaccrual loans that have been specifically reviewed for impairment with no related allowance in 2025 and 2024, respectively.
(c)    $3 million of HELOC loans are nonaccrual loans that have been specifically reviewed for impairment with no related allowance in both 2025 and 2024.
(d)    $12 million and $9 million of real estate installment loans are nonaccrual loans that have been specifically reviewed for impairment with no related allowance in 2025 and 2024, respectively.

Collateral-Dependent Loans
Collateral-dependent loans are defined as loans for which repayment is expected to be derived substantially through the operation or sale of the collateral and where the borrower is experiencing financial difficulty. At a minimum, the estimated value of the collateral for each loan equals the current book value.
As of June 30, 2025 and December 31, 2024, FHN had commercial loans with amortized cost of approximately $397 million and $352 million, respectively, that were based on the value of underlying collateral. Collateral-dependent C&I and CRE loans totaled $164 million and $233 million, respectively, at June 30, 2025. The collateral for these loans generally consists of business assets
including land, buildings, equipment, and financial assets. During the three and six months ended June 30, 2025, FHN recognized charge-offs of $13 million and $37 million, respectively, on these loans related to reductions in estimated collateral values.
Consumer HELOC and real estate installment loans with amortized cost based on the value of underlying real estate collateral were approximately $5 million and $42 million, respectively, as of June 30, 2025 and $6 million and $36 million, respectively, as of December 31, 2024. Charge-offs relating to collateral-dependent consumer loans were $1 million for both the six months ended June 30, 2025 and June 30, 2024.
Loan Modifications to Troubled Borrowers
As part of FHN’s ongoing risk management practices, FHN attempts to work with borrowers when necessary to extend or modify loan terms to better align with their current ability to repay. Modifications could include extension of the maturity date, reductions of the interest rate, reduction or forgiveness of accrued interest, or principal forgiveness. Combinations of these modifications may also be made for individual loans. Extensions and modifications to loans are made in accordance with internal policies and guidelines which conform to regulatory guidance. Principal reductions may be made in limited circumstances, typically for specific commercial loan workouts, and in the event of borrower bankruptcy. Each occurrence is unique to the borrower and is evaluated separately.
Troubled loans are considered those in which the borrower is experiencing financial difficulty. The assessment of whether a borrower is experiencing financial difficulty can be subjective in nature and management’s judgment may be required in making this determination. FHN may determine that a borrower is experiencing financial difficulty if the borrower is currently in default on any of its debt, or if it is probable that a borrower may default in the
foreseeable future absent a modification. Many aspects of a borrower’s financial situation are assessed when determining whether they are experiencing financial difficulty.
Troubled commercial loans are typically modified through forbearance agreements which could include reduced interest rates, reduced payments, term extension, or entering into short sale agreements. Principal reductions may occur in specific circumstances.
Modifications for troubled consumer loans are generally structured using parameters of U.S. government-sponsored programs. For HELOC and real estate installment loans, troubled loans are typically modified by an interest rate reduction and a possible maturity date extension to reach an affordable housing expense-to-income ratio. Despite the absence of a loan modification by FHN, the discharge of personal liability through bankruptcy proceedings is considered a court-imposed modification.
For the credit card portfolio, troubled loan modifications are typically effected through either a short-term credit card hardship program or a longer-term credit card workout program. In the credit card hardship program, borrowers may be granted rate and payment reductions for six months to one year. In the credit card workout program, borrowers are granted a rate reduction to 0% and a term extension for up to five years.
Modifications to Borrowers Experiencing Financial Difficulty
The following table presents the amortized cost basis at the end of the reporting period of loans modified to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of modification made, as well as the financial effect of the modifications made as of June 30, 2025.

LOAN MODIFICATIONS TO BORROWERS EXPERIENCING FINANCIAL DIFFICULTY
Interest Rate Reduction
June 30, 2025June 30, 2024
(Dollars in millions)Balance% of Total Class Financial EffectBalance% of Total ClassFinancial Effect
CRE$47 0.3 %
Reduced weighted-average contractual interest rate from 7.61% to 6.96%
$— — %N/A
Consumer real estate (a)— — 
Reduced weighted-average contractual interest rate from 11.10% to 6.58%
— — 
Reduced weighted-average contractual interest rate from 9.87% to 6.52%
Credit card and other (a)— — 
Reduced weighted-average contractual interest rate from 17.36% to 0.00%
— — 
Reduced weighted-average contractual interest rate from 5.77% to 4.41%
Total$47 0.1 %$— — %
(a) Balance less than $1 million.
Term Extension
June 30, 2025June 30, 2024
(Dollars in millions)Balance% of Total ClassFinancial EffectBalance% of Total ClassFinancial Effect
C&I$122 0.4 %
Added a weighted-average 1.1 years to the life of loans, which reduced monthly payment amounts for the borrowers
$95 0.3 %
Added a weighted-average 1.2 years to the life of loans, which reduced monthly payment amounts for the borrowers
CRE124 0.9 
Added a weighted-average 1.3 years to the life of loans, which reduced monthly payment amounts for the borrowers
28 0.2 
Added a weighted-average 2.4 years to the life of loans, which reduced monthly payment amounts for the borrowers
Consumer real estate (a)— — N/A— — 
Added a weighted-average 22 years to the life of loans, which reduced monthly payment amounts for the borrowers
Total$246 0.4 %$123 0.2 %
(a) Balance less than $1 million.
Principal Forgiveness
June 30, 2025June 30, 2024
(Dollars in millions)Balance% of Total Class Financial EffectBalance% of Total ClassFinancial Effect
Consumer real estate (a)$— — %
Less than $1 million of the principal of loans was legally discharged in bankruptcy during the period and the borrowers have not reaffirmed the debt as of period end
$— — %
Less than $1 million of the principal of loans was legally discharged in bankruptcy during the period and the borrowers have not reaffirmed the debt as of period end
Total$— — %$— — %
(a) Balance less than $1 million.

Combination - Term Extension and Interest Rate Reduction
June 30, 2025June 30, 2024
(Dollars in millions)Balance% of Total Class Financial EffectBalance% of Total ClassFinancial Effect
C&I (a)$— — %
Added a weighted-average 1.2 years to the life of loans and reduced weighted-average contractual interest rate from 9.19% to 8.17%
$— — %N/A
CRE33 0.2 
Added a weighted-average 2.0 years to the life of loans and reduced weighted-average contractual interest rate from 7.78% to 6.82%
— — N/A
Consumer real estate1 — 
Added a weighted-average 11.2 years to the life of loans and reduced weighted-average contractual interest rate from 8.43% to 4.35%
3 — 
Added a weighted-average 10.8 years to the life of loans and reduced weighted-average contractual interest rate from 8.39% to 3.67%
Total$34 0.1 %$3 — %
(a) Balance less than $1 million.
Loan modifications to borrowers experiencing financial difficulty that had a payment default during the period and were modified in the 12 months before default totaled $1 million and $8 million for the six months ended June 30, 2025 and June 30, 2024, respectively. FHN closely monitors the performance of the loans that are modified to
borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts.
The following table depicts the performance of loans that have been modified in the last 12 months.
PERFORMANCE OF LOANS THAT HAVE BEEN MODIFIED IN THE LAST 12 MONTHS
June 30, 2025
(Dollars in millions)Current30-89 Days Past Due90+ Days Past DueNon-Accruing
C&I$127 $8 $— $27 
CRE247 — — 148 
Consumer Real Estate1 — — 1 
Total$375 $8 $— $176