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Allowance for Credit Losses
 12 Months Ended
Dec. 31, 2025
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
Allowance for Credit Losses Allowance for Credit Losses
Management's estimate of expected credit losses in the loan and lease portfolios is recorded in the ALLL and the reserve for unfunded lending commitments, collectively referred to as the Allowance for Credit Losses, or the ACL. See Note 1 - Significant Accounting Policies for further discussion of FHN's ACL methodology.

The ACL is maintained at a level management believes to be appropriate to absorb expected credit losses over the contractual life of the loan and lease portfolio and unfunded lending commitments. The determination of the ACL is based on periodic evaluation of the loan and lease portfolios and unfunded lending commitments considering a number of relevant underlying factors, including key assumptions and evaluation of quantitative and qualitative information.
The expected loan losses are the product of multiplying FHN’s estimates of probability of default ("PD"), loss given default ("LGD"), and individual loan level exposure at default ("EAD"), including amortization and prepayment assumptions, on an undiscounted basis. FHN uses models or assumptions to develop the expected loss forecasts, which incorporate multiple macroeconomic forecasts over a reasonable and supportable forecast period of at most three years. After the reasonable and supportable forecast period, the Company reverts on a straight-line basis to its historical loss averages, evaluated over the historical observation period, for the remaining estimated life of the loans. In order to capture the unique risks of the loan portfolio within the PD, LGD, and prepayment models, FHN segments the portfolio into pools, generally incorporating loan grades for commercial loans. As there can be no certainty that actual economic performance will precisely follow any specific macroeconomic forecast, FHN uses qualitative adjustments where current loan characteristics or current or forecasted economic conditions differ from historical periods.
The evaluation of quantitative and qualitative information is performed through assessments of groups of assets that share similar risk characteristics and certain individual loans and leases that do not share similar risk characteristics with the collective group. As described in Note 3 - Loans and Leases, loans are grouped generally by product type and significant loan portfolios are assessed for credit losses using analytical or statistical models. The quantitative component utilizes economic forecast information as its foundation and is primarily based on analytical models that use known or estimated data as of the balance sheet date and forecasted data over the reasonable and supportable period. The ACL is also affected by qualitative factors that FHN considers to
reflect current judgment of various events and risks that are not measured in the quantitative calculations, including alternative economic forecasts.
In accordance with its accounting policy elections, FHN does not recognize a separate allowance for expected credit losses for AIR and records reversals of AIR as reductions of interest income. FHN reverses previously accrued but uncollected interest when an asset is placed on nonaccrual status. AIR and the related allowance for expected credit losses are included as a component of other assets. The total amount of interest reversals from loans placed on nonaccrual status and the amount of income recognized on nonaccrual loans during the years ended December 31, 2025, 2024, and 2023 were not material.
Expected credit losses for unfunded commitments are estimated for periods where the commitment is not unconditionally cancellable. The measurement of expected credit losses for unfunded commitments mirrors that of loans and leases with the additional estimate of future draw rates (timing and amount).
The decrease in the ACL balance as of December 31, 2025, as compared to December 31, 2024, was largely driven by reductions in criticized and classified loan balances, lower specific reserves in the CRE portfolio, and lower CRE loan balances. In developing credit loss estimates for its loan and lease portfolios, FHN utilized multiple scenarios for its macroeconomic inputs, including a baseline scenario, an upside scenario, and a downside scenario from Moody’s. As of December 31, 2025, among other things, FHN's scenario selection process factored in inflation, interest rates, employment, and real estate prices. FHN selected one scenario as its base case, which was the Moody's baseline scenario. The heaviest weight was placed on this scenario. Smaller weights were placed on the FHN-selected downside scenario and on the FHN-selected upside scenario.
Management also made qualitative adjustments to reflect estimated recoveries based on a review of prior charge-off and recovery levels, for default risk associated with large balances with individual borrowers, for estimated loss amounts not reflected in historical factors due to specific portfolio risk or identified model limitations, and for instances where limited data for acquired loans is considered to affect modeled results.
The following table provides a rollforward of the ALLL and the reserve for unfunded lending commitments by portfolio type for December 31, 2025, 2024, and 2023.
Table 8.4.1
ROLLFORWARD OF ALLL & RESERVE FOR UNFUNDED LENDING COMMITMENTS
(Dollars in millions)Commercial, Financial, and IndustrialCommercial
Real Estate		Consumer
Real Estate		Credit Card
and Other		Total
Allowance for loan and lease losses:
Balance as of January 1, 2025$345 $227 $221 $22 $815 
Charge-offs (126)(15)(5)(20)(166)
Recoveries32 3 6 5 46 
Provision for loan and lease losses 84 (38)(16)13 43 
Balance as of December 31, 2025335 177 206 20 738 
Reserve for remaining unfunded commitments:
Balance as of January 1, 2025$57 $11 $11 $— $79 
Provision for unfunded lending commitments24 — (2)— 22 
Balance as of December 31, 202581 11 9 — 101 
Allowance for credit losses as of December 31, 2025$416 $188 $215 $20 $839 
Allowance for loan and lease losses:
Balance as of January 1, 2024$339 $172 $233 $29 $773 
Charge-offs (77)(56)(3)(21)(157)
Recoveries 30 1 9 5 45 
Provision for loan and lease losses 53 110 (18)9 154 
Balance as of December 31, 2024345 227 221 22 815 
Reserve for remaining unfunded commitments:
Balance as of January 1, 2024$49 $22 $12 $— $83 
Provision for unfunded lending commitments8 (11)(1)— (4)
Balance as of December 31, 202457 11 11 — 79 
Allowance for credit losses as of December 31, 2024$402 $238 $232 $22 $894 
Allowance for loan and lease losses
Balance as of January 1, 2023$308 $146 $200 $31 $685 
Adoption of ASU 2022-02 1 — (7)— (6)
Charge-offs (a)(156)(17)(4)(22)(199)
Recoveries 14 2 9 4 29 
Provision for loan and lease losses 172 41 35 16 264 
Balance as of December 31, 2023339 172 233 29 773 
Reserve for remaining unfunded commitments:
Balance as of January 1, 2023$55 $22 $10 $— $87 
Provision for unfunded lending commitments(6)— 2 — (4)
Balance as of December 31, 202349 22 12 — 83 
Allowance for credit losses as of December 31, 2023$388 $194 $245 $29 $856 
(a)    Charge-offs in the C&I portfolio in 2023 include $72 million from a single credit from a company in bankruptcy.
The following table represents gross charge-offs by year of origination for the years ended December 31, 2025, 2024, and 2023.
Table 8.4.2
GROSS CHARGE-OFFS
(Dollars in millions)20252024202320222021Prior to 2021Revolving LoansTotal
C&I$3 $5 $13 $22 $30 $39 $14 $126 
CRE— — — 9 — 6 — 15 
Consumer real estate— — 2 1 — 2 — 5 
Credit card and other7 — 1 1 2 1 8 20 
Total$10 $5 $16 $33 $32 $48 $22 $166 
(Dollars in millions)20242023202220212020Prior to 2020Revolving LoansTotal
C&I$1 $16 $15 $23 $3 $15 $4 $77 
CRE— — 5 — 17 34 — 56 
Consumer real estate— 1 — — — 2 — 3 
Credit card and other8 1 1 — — 2 9 21 
Total$9 $18 $21 $23 $20 $53 $13 $157 
(Dollars in millions)20232022202120202019Prior to 2019Revolving LoansTotal
C&I$1 $17 $82 $5 $10 $34 $7 $156 
CRE— — — — 2 15 — 17 
Consumer real estate— 1 — — — 3 — 4 
Credit card and other12 1 — — — 2 7 22 
Total$13 $19 $82 $5 $12 $54 $14 $199