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Loans and Leases
 12 Months Ended
Dec. 31, 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 December 31, 2025 and 2024, excluding accrued interest of $257 million and $271 million, respectively, which is included in other assets in the Consolidated Balance Sheets.
Table 8.3.1
LOANS AND LEASES BY PORTFOLIO SEGMENT
December 31,
(Dollars in millions)20252024
Commercial:
Commercial and industrial (a)$31,202 $29,957 
Loans to mortgage companies4,703 3,471 
   Total commercial, financial, and industrial35,905 33,428 
Commercial real estate13,563 14,421 
Consumer:
HELOC2,164 2,092 
Real estate installment loans11,944 11,955 
   Total consumer real estate14,108 14,047 
Credit card and other (b)580 669 
Loans and leases$64,156 $62,565 
Allowance for loan and lease losses(738)(815)
Net loans and leases$63,418 $61,750 
(a)Includes equipment financing leases of $1.5 billion and $1.4 billion as of December 31, 2025 and 2024, respectively.
(b)Includes $143 million and $174 million of commercial credit card balances as of December 31, 2025 and 2024, respectively.

Restrictions
Loans and leases with carrying values of $45.1 billion and $45.8 billion were pledged as collateral for borrowings as of December 31, 2025 and 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 December 31, 2025, FHN had loans to mortgage companies of $4.7 billion and loans to finance and insurance companies of $4.1 billion. As a result, 25% 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 December 31, 2025 and 2024.
Table 8.3.2
C&I PORTFOLIO
December 31, 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) $4,492 $5,124 $2,012 $2,706 $1,749 $3,997 $4,703 $9,448 $210 $34,441 
Special Mention (PD grade 13)7 55 42 78 30 61 — 123 6 402 
Substandard, Doubtful, or Loss (PD grades 14,15, and 16)52 86 92 207 152 182 — 283 8 1,062 
Total C&I loans$4,551 $5,265 $2,146 $2,991 $1,931 $4,240 $4,703 $9,854 $224 $35,905 

December 31, 2024
(Dollars in millions)20242023202220212020Prior to 2020LMC (a)Revolving LoansRevolving Loans Converted to Term LoansTotal
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 of less than one year.

Table 8.3.3
CRE PORTFOLIO
December 31, 2025
(Dollars in millions)20252024202320222021Prior to 2021Revolving
 Loans		Revolving
Loans Converted
to Term Loans		Total
Credit Quality Indicator:
Pass (PD grades 1 through 12)$1,362 $1,011 $1,726 $2,314 $1,873 $3,457 $293 $93 $12,129 
Special Mention (PD grade 13)— — 1 191 92 88 33 — 405 
Substandard, Doubtful, or Loss (PD grades 14,15, and 16)10 11 9 480 152 321 46 — 1,029 
Total CRE loans$1,372 $1,022 $1,736 $2,985 $2,117 $3,866 $372 $93 $13,563 
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 December 31, 2025 and 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 tables classified in a vintage year are real estate installment loans.


Table 8.3.4
CONSUMER REAL ESTATE PORTFOLIO
December 31, 2025
(Dollars in millions)20252024202320222021Prior to 2021Revolving LoansRevolving Loans Converted to Term Loans Total
FICO score 740 or greater$920 $922 $1,330 $1,830 $1,430 $1,924 $1,551 $75 $9,982 
FICO score 720-739119 139 173 250 193 324 182 17 1,397 
FICO score 700-71994 90 125 202 159 250 134 14 1,068 
FICO score 660-69992 128 145 163 90 268 115 19 1,020 
FICO score 620-6599 11 10 16 18 102 22 5 193 
FICO score less than 62025 25 20 19 23 306 15 15 448 
Total consumer real estate loans$1,259 $1,315 $1,803 $2,480 $1,913 $3,174 $2,019 $145 $14,108 
December 31, 2024
(Dollars in millions)20242023202220212020Prior to 2020Revolving LoansRevolving Loans Converted to Term LoansTotal
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 62018 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 December 31, 2025 and 2024.
Table 8.3.5
CREDIT CARD & OTHER PORTFOLIO
December 31, 2025
(Dollars in millions)20252024202320222021Prior to 2021Revolving LoansRevolving Loans Converted to Term LoansTotal
FICO score 740 or greater$25 $8 $8 $3 $2 $8 $197 $6 $257 
FICO score 720-7392 1 1 — — 1 13 1 19 
FICO score 700-7192 1 — 1 — — 12 1 17 
FICO score 660-6991 — — — — 1 6 1 9 
FICO score 620-6591 1 — — — — 7 1 10 
FICO score less than 6205 4 4 3 2 48 202 — 268 
Total credit card and other loans$36 $15 $13 $7 $4 $58 $437 $10 $580 
December 31, 2024
(Dollars in millions)20242023202220212020Prior to 2020Revolving LoansRevolving Loans Converted to Term LoansTotal
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 6208 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 December 31, 2025 and 2024.
Table 8.3.6
ACCRUING & NON-ACCRUING LOANS & LEASES
December 31, 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) $30,943 $34 $1 $30,978 $120 $35 $69 $224 $31,202 
Loans to mortgage companies4,703 — — 4,703 — — — — 4,703 
Total commercial, financial, and industrial35,646 34 1 35,681 120 35 69 224 35,905 
Commercial real estate:
CRE (b)13,321 3 — 13,324 218 11 10 239 13,563 
Consumer real estate:
HELOC (c)2,115 14 — 2,129 17 7 11 35 2,164 
Real estate installment loans (d)11,806 27 6 11,839 40 9 56 105 11,944 
Total consumer real estate13,921 41 6 13,968 57 16 67 140 14,108 
Credit card and other:
Credit card224 3 1 228 — — — — 228 
Other349 2 — 351 — — 1 1 352 
Total credit card and other573 5 1 579 — — 1 1 580 
Total loans and leases$63,461 $83 $8 $63,552 $395 $62 $147 $604 $64,156 
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)    $211 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)    $238 million and $287 million of CRE loans are nonaccrual loans that have been specifically reviewed for impairment with no related allowance for 2025 and 2024, respectively.
(c)    $3 million of HELOC loans are nonaccrual loans that have been specifically reviewed for impairment with no related allowance for both 2025 and 2024.
(d)    $8 million and $9 million of real estate installment loans are nonaccrual loans that have been specifically reviewed for impairment with no related allowance for 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 December 31, 2025 and 2024, FHN had commercial loans with amortized cost of approximately $400 million and $352 million, respectively, that were based on the value of underlying collateral. Collateral-dependent C&I and CRE loans totaled $160 million and $240 million, respectively, as of December 31, 2025. The collateral for these loans generally consists of business assets including land, buildings, equipment, and financial assets. During the years ended December 31, 2025 and 2024, FHN recognized charge-offs of $66 million and $75 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 $46 million, respectively, as of December 31, 2025, and $6 million and $36 million, respectively, as of December 31, 2024. Charge-offs were $3 million and $2 million for collateral-dependent consumer loans during the years ended December 31, 2025 and 2024, respectively.
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 of December 31, 2025, 2024, and 2023.
Table 8.3.7
LOAN MODIFICATIONS TO BORROWERS EXPERIENCING FINANCIAL DIFFICULTY
Amortized Cost
Interest Rate ReductionTerm ExtensionPrincipal Forgiven/Payment DeferredCombination (a)Total% of Total Class
(Dollars in millions)
As of December 31, 2025
C&I$— $188 $— $7 $195 0.54 %
CRE45 191 — 47 283 2.09 
Consumer real estate — — 1 2 3 0.02 
Total$45 $379 $1 $56 $481 0.75 %
As of December 31, 2024
C&I$— $132 $— $8 $140 0.42 %
CRE— 180 — 61 241 1.67 
Consumer real estate — — — 3 3 0.02 
Total$— $312 $— $72 $384 0.60 %
As of December 31, 2023
C&I$— $90 $— $2 $92 0.28 %
CRE— 40 — 15 55 0.39 
Consumer real estate2 2 5 6 15 0.11 
Total$2 $132 $5 $23 $162 0.26 %
(a) Combination modifications consist primarily of loans modified with both an interest rate reduction and a term extension.

The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty.

Table 8.3.8
FINANCIAL EFFECT OF MODIFICATIONS TO BORROWERS EXPERIENCING FINANCIAL DIFFICULTY (a)
Combination
(Dollars in millions)Weighted-average Interest Rate ReductionWeighted-average Term Extension (in years)Amount of Principal Forgiven/Payment DeferredWeighted-average Interest Rate ReductionWeighted-average Term Extension (in years)
As of December 31, 2025
C&I— %1.05$— 1.23 %1.20
CRE0.68 1.43— 0.90 2.33
As of December 31, 2024
C&I— %1.29$— 0.50 %0.76
CRE— 1.25— 0.35 2.03
As of December 31, 2023
C&I— %1.00$— 3.88 %3.85
CRE— 0.80— 0.72 1.12
Consumer real estate3.60 12.001.3 1.09 12.38
(a) Certain disclosures related to financial effects of modifications do not include those deemed to be immaterial.
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 $16 million, $19 million, and $28 million for the years ended December 31, 2025, 2024, and 2023, 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 as of December 31, 2025, 2024, and 2023.

Table 8.3.9
PERFORMANCE OF LOANS THAT HAVE BEEN MODIFIED IN THE LAST 12 MONTHS
December 31, 2025
(Dollars in millions)Current30-89 Days Past Due90+ Days Past DueNon-AccruingTotal
C&I$133 $7 $— $55 $195 
CRE155 — — 128 283
Consumer real estate1 — — 2 3
Total$289 $7 $— $185 $481 
December 31, 2024
(Dollars in millions)Current30-89 Days Past Due90+ Days Past DueNon-AccruingTotal
C&I$116 $— $— $24 $140 
CRE195 — — 46 241
Consumer real estate2 — — 1 3
Total$313 $— $— $71 $384 
December 31, 2023
(Dollars in millions)Current30-89 Days Past Due90+ Days Past DueNon-AccruingTotal
C&I$70 $— $— $22 $92 
CRE8 — — 47 55
Consumer real estate4 — — 11 15
Total$82 $— $— $80 $162