XML 35 R20.htm IDEA: XBRL DOCUMENT v3.25.3
Business Segment Information
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Business Segment Information Business Segment Information
During fourth quarter 2024, FHN reorganized its internal management structure and, accordingly, reclassified its reportable business segments. Prior to the 2024 reclassification, FHN's reportable segments were: (1) Regional Banking, (2) Specialty Banking, and (3) Corporate. As a result of the 2024 reclassification, FHN revised its reportable segments as described below. Segment information for periods prior to fourth quarter 2024 has been reclassified to conform to the current period presentation.
FHN's operating segments are composed of the following:
•Commercial, Consumer & Wealth segment offers financial products and services, including traditional lending and deposit taking, to commercial and consumer clients primarily in the southern U.S. and other selected markets. Commercial, Consumer & Wealth also consists of lines of business that deliver product offerings and services with niche industry knowledge including asset-based lending, commercial real estate, equipment finance/leasing, energy, international banking, healthcare, and transportation and logistics. Additionally, Commercial, Consumer & Wealth provides investment, wealth management, financial planning, trust and asset management services for consumer clients as well as delivering treasury management solutions, loan syndications, and corporate banking services.
•Wholesale segment consists of lines of business that deliver product offerings and services with differentiated industry knowledge. Wholesale’s lines of business include mortgage warehouse lending, franchise finance, correspondent banking, and mortgage. Additionally, Wholesale has a line of business focused on fixed income securities sales, trading, underwriting, and strategies for institutional clients in the U.S. and abroad, as well as loan sales, portfolio advisory services, and derivative sales.
•Corporate segment consists primarily of corporate support functions including risk management, audit, accounting, finance, executive office, and corporate communications. Shared support services such as human resources, marketing, properties, technology, credit risk and bank operations are allocated to the activities of Commercial, Consumer & Wealth, Wholesale, and Corporate. Additionally, the Corporate segment includes centralized management of capital and funding to support the business activities of the company including management of balance sheet funding, liquidity, and capital management and allocation. The Corporate segment also includes the revenue and expense associated with run-off businesses such as pre-2009 mortgage banking
elements, run-off consumer and trust preferred loan portfolios, and other exited businesses.
Basis of Presentation
Results of individual segments are presented based on FHN's internal management reporting practices. There is no comprehensive, authoritative body of guidance for management accounting equivalent to GAAP; therefore, the financial results of FHN's individual segments are not necessarily comparable with similar information for any other company.
Periodically, FHN adapts its segments to reflect managerial or strategic changes. FHN may also modify its methodology of allocating expenses and equity among segments, which could change historical segment results. Business segment revenue, expense, asset, and equity levels reflect those which are specifically identifiable, or which are allocated based on an internal allocation method. Because the allocations are based on internally developed assignments and allocations, to an extent they are subjective. Generally, all assignments and allocations have been consistently applied for all periods presented.
Funds Transfer Pricing
Net interest income in segment results reflects FHN's internal funds transfer pricing methodology which is designed to consider interest rate and liquidity risks. Under this methodology, assets receive a funding charge while liabilities and capital receive a funding credit based on market interest rates, product characteristics, and other factors.
The transfer pricing framework considers the application of funding curves and methodologies consistently across the balance sheet. A residual gain or loss from funds transfer pricing operations is retained within Corporate.
Segment Allocations
Financial results are presented, to the extent practicable, as if each segment operated on a stand-alone basis and include expense allocations for corporate overhead services used by the segments.
FHN has allocated the ALLL and the reserve for unfunded lending commitments based on the loan exposures within each segment’s portfolio.
The Company's Chief Operating Decision Maker ("CODM") is comprised of the chief executive officer and segment leadership.
For both the Commercial, Consumer & Wealth and Wholesale segments, the CODM uses both Pre-Provision Net Revenue ("PPNR") and Pre-Tax Net Income ("PTNI") to evaluate performance and allocate resources. The measure of PPNR focuses on the Company's primary businesses principally by excluding the volatility
associated with credit risk estimates due to the CECL life-of-loan estimation requirement, which is highly sensitive to changes in economic forecasts. PPNR also represents a metric utilized by regulatory agencies in stress testing assessments. PTNI is used to incorporate credit risk estimates for a holistic view of pre-tax results in the evaluation of segment performance.
For the Corporate segment, the CODM uses after-tax income to evaluate performance and allocate resources.
After-tax income is most relevant for the Corporate segment because of minimal credit risk and inclusion of the impacts from all consolidated tax matters, which are not allocated, in addition to all other methodologies affecting pre-tax income among reported segments (e.g., FTP and cost allocations).
The following tables present financial information for each reportable business segment for the three and nine months ended September 30, 2025 and 2024.
SEGMENT FINANCIAL INFORMATION
Three Months Ended September 30, 2025
(Dollars in millions)Commercial, Consumer & WealthWholesaleCorporateConsolidated
Interest income$855 $142 $80 $1,077 
Interest expense300 27 76 403 
Funds transfer pricing105 (55)(50)— 
Net interest income (expense)660 60 (46)674 
Noninterest income117 73 25 215 
Total revenues777 133 (21)889 
Noninterest expense (a)365 83 102 550 
Pre-provision net revenue (b)412 50 (123)339 
Provision for credit losses2 (1)(6)(5)
Income (loss) before income taxes410 51 (117)344 
Income tax expense (benefit)98 12 (32)78 
Net income (loss)$312 $39 $(85)$266 
Average assets$58,827 $9,356 $13,866 $82,049 
Depreciation and amortization(5)2 9 6 
Expenditures for long-lived assets5 — 1 6 
Three Months Ended September 30, 2024
(Dollars in millions)Commercial, Consumer & WealthWholesaleCorporateConsolidated
Interest income$905 $141 $73 $1,119 
Interest expense372 31 89 492 
Funds transfer pricing101 (58)(43)— 
Net interest income (expense)634 52 (59)627 
Noninterest income119 56 25 200 
Total revenues753 108 (34)827 
Noninterest expense (a)352 75 84 511 
Pre-provision net revenue (b)401 33 (118)316 
Provision for credit losses42 (7)— 35 
Income (loss) before income taxes359 40 (118)281 
Income tax expense (benefit)85 10 (37)58 
Net income (loss)$274 $30 $(81)$223 
Average assets$59,503 $8,440 $14,423 $82,366 
Depreciation and amortization15 2 14 31 
Expenditures for long-lived assets4 — 3 7 
(a)2025 includes $10 million in derivative valuation adjustments related to prior Visa Class B share sales and an FDIC special assessment expense credit of $2 million in the Corporate segment. 2024 includes $15 million in derivative valuation adjustments related to prior Visa Class B share sales, $2 million of restructuring costs, and a $2 million FDIC special assessment expense credit in the Corporate segment.
(b)Pre-provision net revenue is a non-GAAP measure and is reconciled to income (loss) before income taxes (GAAP) in this table.
Nine Months Ended September 30, 2025
(Dollars in millions)Commercial, Consumer & WealthWholesaleCorporateConsolidated
Interest income$2,494 $406 $235 $3,135 
Interest expense886 81 222 1,189 
Funds transfer pricing308 (157)(151)— 
Net interest income (expense)1,916 168 (138)1,946 
Noninterest income340 187 58 585 
Total revenues2,256 355 (80)2,531 
Noninterest expense (a)1,063 235 231 1,529 
Pre-provision net revenue (b)1,193 120 (311)1,002 
Provision for credit losses52 9 4 65 
Income (loss) before income taxes1,141 111 (315)937 
Income tax expense (benefit)271 27 (93)205 
Net income (loss)$870 $84 $(222)$732 
Average assets$58,760 $9,056 $13,845 $81,661 
Depreciation and amortization12 6 29 47 
Expenditures for long-lived assets15 1 7 23 
Nine Months Ended September 30, 2024
(Dollars in millions)Commercial, Consumer & WealthWholesaleCorporateConsolidated
Interest income$2,681 $386 $217 $3,284 
Interest expense1,075 96 232 1,403 
Funds transfer pricing291 (151)(140)— 
Net interest income (expense)1,897 139 (155)1,881 
Noninterest income345 172 64 581 
Total revenues2,242 311 (91)2,462 
Noninterest expense (a)1,056 223 248 1,527 
Pre-provision net revenue (b)1,186 88 (339)935 
Provision for credit losses143 1 (4)140 
Income (loss) before income taxes1,043 87 (335)795 
Income tax expense (benefit)246 21 (96)171 
Net income (loss)$797 $66 $(239)$624 
Average assets$59,503 $7,871 $14,405 $81,779 
Depreciation and amortization33 6 43 82 
Expenditures for long-lived assets15 1 12 28 
(a)2025 includes $15 million in derivative valuation adjustments related to prior Visa Class B share sales, a $4 million expense credit related to an accrual release in deferred compensation, and an FDIC special assessment expense credit of $2 million in the Corporate segment. 2024 includes $15 million in derivative valuation adjustments related to prior Visa Class B share sales, $10 million in restructuring costs, and a net FDIC special assessment of $10 million in the Corporate segment.
(b)Pre-provision net revenue is a non-GAAP measure and is reconciled to income (loss) before income taxes (GAAP) in this table.
The following tables reflect a disaggregation of FHN’s noninterest income by major product line and reportable segment for the three and nine months ended September 30, 2025 and 2024.

NONINTEREST INCOME DETAIL BY SEGMENT
Three Months Ended September 30, 2025
(Dollars in millions)Commercial, Consumer & WealthWholesaleCorporateConsolidated
Noninterest income:
Fixed income (a)$— $57 $— $57 
Deposit transactions and cash management40 1 2 43 
Brokerage, management fees and commissions26 — — 26 
Card and digital banking fees16 — 3 19 
Other service charges and fees14 — — 14 
Trust services and investment management13 — — 13 
Mortgage banking income— 15 — 15 
Other income (c)8 — 20 28 
Total noninterest income$117 $73 $25 $215 
Three Months Ended September 30, 2024
(Dollars in millions)Commercial, Consumer & WealthWholesaleCorporateConsolidated
Noninterest income:
Fixed income (a)$— $47 $— $47 
Deposit transactions and cash management42 1 2 45 
Brokerage, management fees and commissions27 — — 27 
Card and digital banking fees16 — 3 19 
Other service charges and fees13 — — 13 
Trust services and investment management12 — — 12 
Mortgage banking income— 8 1 9 
Securities gains (losses), net (b)— — 1 1 
Other income (c)9 — 18 27 
Total noninterest income$119 $56 $25 $200 
(a)2025 and 2024 include $14 million and $11 million, respectively, of underwriting, portfolio advisory, and other noninterest income in scope of ASC 606, "Revenue from Contracts with Customers."
(b)Represents noninterest income excluded from the scope of ASC 606. Amount is presented for informational purposes to reconcile total noninterest income.
(c)Includes letter of credit fees and insurance commissions in scope of ASC 606.
Nine Months Ended September 30, 2025
(Dollars in millions)Commercial, Consumer & WealthWholesaleCorporateConsolidated
Noninterest income:
Fixed income (a)$— $149 $— $149 
Deposit transactions and cash management116 2 7 125 
Brokerage, management fees and commissions77 — — 77 
Card and digital banking fees48 — 7 55 
Other service charges and fees38 2 — 40 
Trust services and investment management37 — 1 38 
Mortgage banking income1 32 — 33 
Securities gains (losses), net (b)— — 1 1 
Other income (c)23 2 42 67 
Total noninterest income$340 $187 $58 $585 
Nine Months Ended September 30, 2024
(Dollars in millions)Commercial, Consumer & WealthWholesaleCorporateConsolidated
Noninterest income:
Fixed income (a)$— $138 $— $138 
Deposit transactions and cash management124 3 7 134 
Brokerage, management fees and commissions76 — — 76 
Card and digital banking fees50 — 8 58 
Other service charges and fees37 3 — 40 
Trust services and investment management35 — 1 36 
Mortgage banking income1 26 1 28 
Securities gains (losses), net (b)— — 2 2 
Other income (c)22 2 45 69 
Total noninterest income$345 $172 $64 $581 
(a)2025 and 2024 include $32 million and $31 million, respectively, of underwriting, portfolio advisory, and other noninterest income in scope of ASC 606, "Revenue from Contracts with Customers."
(b)Represents noninterest income excluded from the scope of ASC 606. Amount is presented for informational purposes to reconcile total noninterest income.
(c)Includes letter of credit fees and insurance commissions in scope of ASC 606.
The following tables present a disaggregation of FHN's noninterest expense by major product line and reportable segment for the three and nine months ended September 30, 2025 and 2024.

NONINTEREST EXPENSE DETAIL BY SEGMENT
Three Months Ended September 30, 2025
(Dollars in millions)Commercial, Consumer & WealthWholesaleCorporateConsolidated
Noninterest expense:
Personnel expense$136 $56 $104 $296 
Net occupancy expense20 2 14 36 
Computer software8 2 24 34 
Operations services5 6 13 24 
Legal and professional fees5 1 18 24 
Deposit insurance expense— — 11 11 
Advertising and public relations2 — 10 12 
Equipment expense2 — 8 10 
Amortization of intangible assets9 — — 9 
Contract employment and outsourcing1 1 9 11 
Communications and delivery2 1 5 8 
Contributions— — 23 23 
Other expense14 6 32 52 
Cost allocations161 8 (169)— 
Total noninterest expense$365 $83 $102 $550 
Three Months Ended September 30, 2024
(Dollars in millions)Commercial, Consumer & WealthWholesaleCorporateConsolidated
Noninterest expense:
Personnel expense$133 $50 $99 $282 
Net occupancy expense19 2 12 33 
Computer software8 1 21 30 
Operations services4 5 16 25 
Legal and professional fees3 1 11 15 
Deposit insurance expense— — 11 11 
Advertising and public relations2 — 12 14 
Equipment expense3 — 7 10 
Amortization of intangible assets10 — 1 11 
Contract employment and outsourcing1 1 10 12 
Communications and delivery3 1 4 8 
Contributions— — 4 4 
Other expense16 6 34 56 
Cost allocations150 8 (158)— 
Total noninterest expense$352 $75 $84 $511 
Nine Months Ended September 30, 2025
(Dollars in millions)Commercial, Consumer & WealthWholesaleCorporateConsolidated
Noninterest expense:
Personnel expense$403 $159 $294 $856 
Net occupancy expense59 7 39 105 
Computer software23 5 72 100 
Operations services13 17 41 71 
Legal and professional fees12 2 40 54 
Deposit insurance expense— — 36 36 
Advertising and public relations5 — 31 36 
Equipment expense8 1 23 32 
Amortization of intangible assets26 1 2 29 
Contract employment and outsourcing3 3 21 27 
Communications and delivery7 3 15 25 
Contributions1 — 24 25 
Other expense46 17 70 133 
Cost allocations457 20 (477)— 
Total noninterest expense$1,063 $235 $231 $1,529 

Nine Months Ended September 30, 2024
(Dollars in millions)Commercial, Consumer & WealthWholesaleCorporateConsolidated
Noninterest expense:
Personnel expense$405 $148 $309 $862 
Net occupancy expense56 7 32 95 
Computer software24 4 61 89 
Operations services13 16 40 69 
Legal and professional fees8 2 37 47 
Deposit insurance expense— — 51 51 
Advertising and public relations6 — 31 37 
Equipment expense9 1 22 32 
Amortization of intangible assets29 1 3 33 
Contract employment and outsourcing3 3 34 40 
Communications and delivery8 2 14 24 
Contributions1 — 5 6 
Other expense58 17 67 142 
Cost allocations436 22 (458)— 
Total noninterest expense$1,056 $223 $248 $1,527