Premises, Equipment, and Leases

12 Months Ended

Dec. 31, 2025

Property, Plant and Equipment [Abstract]

Premises, Equipment, and Leases

Premises, Equipment, and Leases

Premises and equipment was comprised of the following at December 31, 2025 and 2024.

Table 8.5.1

PREMISES & EQUIPMENT

(Dollars in millions)	December 31, 2025		December 31, 2024
Land	$	162	$	163
Buildings	575		570
Leasehold improvements	91		88
Furniture, fixtures, and equipment	316		304
Fixed assets held for sale (a)	1		1
Total premises and equipment	1,145		1,126
Less accumulated depreciation and amortization	(601)		(552)
Premises and equipment, net	$	544	$	574

(a) Primarily comprised of land and buildings.

In 2025, FHN recognized $1 million of leased asset impairments, and fixed asset impairments were immaterial. Fixed asset and leased asset impairments were immaterial for 2024 and 2023. Net gains related to the sales of fixed assets were $1 million for 2025, $3 million for 2024, and immaterial for 2023.

First Horizon as Lessee

FHN has operating, financing, and short-term leases for branch locations, corporate offices and certain equipment. Substantially all of these leases are classified as operating leases.

The following table provides details of the classification of FHN's right-of-use assets and lease liabilities included in the Consolidated Balance Sheets.

Table 8.5.2

RIGHT-OF-USE ASSETS & LEASE LIABILITIES

(Dollars in millions)		December 31, 2025		December 31, 2024
Lease right-of-use assets:	Classification
Operating lease right-of-use assets	Other assets	$	321	$	296
Finance lease right-of-use assets	Other assets	2		2
Total lease right-of-use assets		$	323	$	298
Lease liabilities:
Operating lease liabilities	Other liabilities	$	368	$	330
Finance lease liabilities	Other liabilities	2		3
Total lease liabilities		$	370	$	333

The calculated amounts of ROU assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used to determine the present value of the minimum lease payments. The following table details the weighted average remaining lease term and discount rate for FHN's operating and finance leases as of December 31, 2025 and 2024.

Table 8.5.3

REMAINING LEASE TERMS

& DISCOUNT RATES

	December 31, 2025		December 31, 2024
Weighted Average Remaining Lease Terms
Operating leases	11.65 years		11.68 years
Finance leases	8.31 years		8.60 years
Weighted Average Discount Rate
Operating leases	3.69	%	3.19	%
Finance leases	2.00	%	2.16	%

The following table provides a detail of the components of lease expense and other lease information for the years ended December 31, 2025, 2024, and 2023.

Table 8.5.4

LEASE EXPENSE & OTHER INFORMATION

(Dollars in millions)	2025		2024		2023
Lease cost
Operating lease cost	$	46	$	44	$	45
Sublease income	(1)		(1)		(2)
Total lease cost	$	45	$	43	$	43
Other information
(Gain) loss on right-of-use asset impairment - operating leases	$	1	$	—	$	1
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	34		43		46
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases	60		22		11

The following table provides a detail of the maturities of FHN's operating and finance lease liabilities as of December 31, 2025.

Table 8.5.5

LEASE LIABILITY MATURITIES

(Dollars in millions)	December 31, 2025
2026	$	45
2027	49
2028	45
2029	42
2030	37
2031 and thereafter	243
Total lease payments	461
Less lease liability interest	(91)
Total lease liability	$	370

FHN had aggregate undiscounted contractual obligations of less than $1 million for lease arrangements that have not commenced as of December 31, 2025. Payments under these arrangements are expected to occur from 2026 through 2031.

First Horizon as Lessor

As a lessor, FHN engages in the leasing of equipment to commercial clients primarily through direct financing and sales-type leases. Direct financing and sales-type leases are similar to other forms of installment lending in that lessors generally do not retain benefits and risks incidental to ownership of the property subject to leases. Such arrangements are essentially financing transactions that permit lessees to acquire and use property. As lessor, the sum of all minimum lease payments over the lease term and the estimated residual value, less unearned interest income, is recorded as the net investment in the lease on the commencement date and is included in loans and leases in the Consolidated Balance Sheets. Interest income is accrued as earned over the term of the lease based on the net investment in leases. Fees incurred to originate the lease are deferred on the commencement date and recognized as an adjustment of the yield on the lease.

FHN’s portfolio of direct financing and sales-type leases contains terms of 3 to 23 years, some of which contain options to extend the lease for various periods of time and/or to purchase the equipment subject to the lease at various points in time. These direct financing and sales-type leases typically include a payment structure set at lease inception and do not provide any additional services. Expenses associated with the leased equipment, such as maintenance and insurance, are paid by the lessee directly to third parties. The lease agreement typically contains an option for the purchase of the leased property by the lessee at the end of the lease term at either the property’s residual value or a specified price. In all cases, FHN expects to sell or re-lease the equipment at the end of the lease term. Due to the nature and structure of FHN’s

direct financing and sales-type leases, there is no selling profit or loss on these transactions.

The components of the Company’s net investment in leases as of December 31, 2025 and 2024 were as follows.

Table 8.5.6

LEASE NET INVESTMENTS

(Dollars in millions)	December 31, 2025		December 31, 2024
Lease receivable	$	1,371	$	1,300
Unearned income	(315)		(279)
Guaranteed residual	164		166
Unguaranteed residual	250		228
Total net investment	$	1,470	$	1,415

Interest income for direct financing or sales-type leases totaled $73 million, $64 million, and $50 million for the years ended December 31, 2025, 2024, and 2023, respectively. There was no profit or loss recognized at the commencement date for direct financing or sales-type leases for the years ended December 31, 2025, 2024, and 2023.

Maturities of the Company's lease receivables as of December 31, 2025 were as follows.

Table 8.5.7

LEASE RECEIVABLE MATURITIES

(Dollars in millions)	December 31, 2025
2026	$	188
2027	165
2028	158
2029	117
2030	165
2031 and thereafter	578
Total future minimum lease payments	$	1,371

Premises, Equipment, and Leases

Premises, Equipment, and Leases

Premises and equipment was comprised of the following at December 31, 2025 and 2024.

Table 8.5.1

PREMISES & EQUIPMENT

(Dollars in millions)	December 31, 2025		December 31, 2024
Land	$	162	$	163
Buildings	575		570
Leasehold improvements	91		88
Furniture, fixtures, and equipment	316		304
Fixed assets held for sale (a)	1		1
Total premises and equipment	1,145		1,126
Less accumulated depreciation and amortization	(601)		(552)
Premises and equipment, net	$	544	$	574

(a) Primarily comprised of land and buildings.

In 2025, FHN recognized $1 million of leased asset impairments, and fixed asset impairments were immaterial. Fixed asset and leased asset impairments were immaterial for 2024 and 2023. Net gains related to the sales of fixed assets were $1 million for 2025, $3 million for 2024, and immaterial for 2023.

First Horizon as Lessee

FHN has operating, financing, and short-term leases for branch locations, corporate offices and certain equipment. Substantially all of these leases are classified as operating leases.

The following table provides details of the classification of FHN's right-of-use assets and lease liabilities included in the Consolidated Balance Sheets.

Table 8.5.2

RIGHT-OF-USE ASSETS & LEASE LIABILITIES

(Dollars in millions)		December 31, 2025		December 31, 2024
Lease right-of-use assets:	Classification
Operating lease right-of-use assets	Other assets	$	321	$	296
Finance lease right-of-use assets	Other assets	2		2
Total lease right-of-use assets		$	323	$	298
Lease liabilities:
Operating lease liabilities	Other liabilities	$	368	$	330
Finance lease liabilities	Other liabilities	2		3
Total lease liabilities		$	370	$	333

The calculated amounts of ROU assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used to determine the present value of the minimum lease payments. The following table details the weighted average remaining lease term and discount rate for FHN's operating and finance leases as of December 31, 2025 and 2024.

Table 8.5.3

REMAINING LEASE TERMS

& DISCOUNT RATES

	December 31, 2025		December 31, 2024
Weighted Average Remaining Lease Terms
Operating leases	11.65 years		11.68 years
Finance leases	8.31 years		8.60 years
Weighted Average Discount Rate
Operating leases	3.69	%	3.19	%
Finance leases	2.00	%	2.16	%

The following table provides a detail of the components of lease expense and other lease information for the years ended December 31, 2025, 2024, and 2023.

Table 8.5.4

LEASE EXPENSE & OTHER INFORMATION

(Dollars in millions)	2025		2024		2023
Lease cost
Operating lease cost	$	46	$	44	$	45
Sublease income	(1)		(1)		(2)
Total lease cost	$	45	$	43	$	43
Other information
(Gain) loss on right-of-use asset impairment - operating leases	$	1	$	—	$	1
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	34		43		46
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases	60		22		11

The following table provides a detail of the maturities of FHN's operating and finance lease liabilities as of December 31, 2025.

Table 8.5.5

LEASE LIABILITY MATURITIES

(Dollars in millions)	December 31, 2025
2026	$	45
2027	49
2028	45
2029	42
2030	37
2031 and thereafter	243
Total lease payments	461
Less lease liability interest	(91)
Total lease liability	$	370

FHN had aggregate undiscounted contractual obligations of less than $1 million for lease arrangements that have not commenced as of December 31, 2025. Payments under these arrangements are expected to occur from 2026 through 2031.

First Horizon as Lessor

As a lessor, FHN engages in the leasing of equipment to commercial clients primarily through direct financing and sales-type leases. Direct financing and sales-type leases are similar to other forms of installment lending in that lessors generally do not retain benefits and risks incidental to ownership of the property subject to leases. Such arrangements are essentially financing transactions that permit lessees to acquire and use property. As lessor, the sum of all minimum lease payments over the lease term and the estimated residual value, less unearned interest income, is recorded as the net investment in the lease on the commencement date and is included in loans and leases in the Consolidated Balance Sheets. Interest income is accrued as earned over the term of the lease based on the net investment in leases. Fees incurred to originate the lease are deferred on the commencement date and recognized as an adjustment of the yield on the lease.

FHN’s portfolio of direct financing and sales-type leases contains terms of 3 to 23 years, some of which contain options to extend the lease for various periods of time and/or to purchase the equipment subject to the lease at various points in time. These direct financing and sales-type leases typically include a payment structure set at lease inception and do not provide any additional services. Expenses associated with the leased equipment, such as maintenance and insurance, are paid by the lessee directly to third parties. The lease agreement typically contains an option for the purchase of the leased property by the lessee at the end of the lease term at either the property’s residual value or a specified price. In all cases, FHN expects to sell or re-lease the equipment at the end of the lease term. Due to the nature and structure of FHN’s

direct financing and sales-type leases, there is no selling profit or loss on these transactions.

The components of the Company’s net investment in leases as of December 31, 2025 and 2024 were as follows.

Table 8.5.6

LEASE NET INVESTMENTS

(Dollars in millions)	December 31, 2025		December 31, 2024
Lease receivable	$	1,371	$	1,300
Unearned income	(315)		(279)
Guaranteed residual	164		166
Unguaranteed residual	250		228
Total net investment	$	1,470	$	1,415

Interest income for direct financing or sales-type leases totaled $73 million, $64 million, and $50 million for the years ended December 31, 2025, 2024, and 2023, respectively. There was no profit or loss recognized at the commencement date for direct financing or sales-type leases for the years ended December 31, 2025, 2024, and 2023.

Maturities of the Company's lease receivables as of December 31, 2025 were as follows.

Table 8.5.7

LEASE RECEIVABLE MATURITIES

(Dollars in millions)	December 31, 2025
2026	$	188
2027	165
2028	158
2029	117
2030	165
2031 and thereafter	578
Total future minimum lease payments	$	1,371

Premises, Equipment, and Leases

Premises, Equipment, and Leases

Premises and equipment was comprised of the following at December 31, 2025 and 2024.

Table 8.5.1

PREMISES & EQUIPMENT

(Dollars in millions)	December 31, 2025		December 31, 2024
Land	$	162	$	163
Buildings	575		570
Leasehold improvements	91		88
Furniture, fixtures, and equipment	316		304
Fixed assets held for sale (a)	1		1
Total premises and equipment	1,145		1,126
Less accumulated depreciation and amortization	(601)		(552)
Premises and equipment, net	$	544	$	574

(a) Primarily comprised of land and buildings.

In 2025, FHN recognized $1 million of leased asset impairments, and fixed asset impairments were immaterial. Fixed asset and leased asset impairments were immaterial for 2024 and 2023. Net gains related to the sales of fixed assets were $1 million for 2025, $3 million for 2024, and immaterial for 2023.

First Horizon as Lessee

FHN has operating, financing, and short-term leases for branch locations, corporate offices and certain equipment. Substantially all of these leases are classified as operating leases.

The following table provides details of the classification of FHN's right-of-use assets and lease liabilities included in the Consolidated Balance Sheets.

Table 8.5.2

RIGHT-OF-USE ASSETS & LEASE LIABILITIES

(Dollars in millions)		December 31, 2025		December 31, 2024
Lease right-of-use assets:	Classification
Operating lease right-of-use assets	Other assets	$	321	$	296
Finance lease right-of-use assets	Other assets	2		2
Total lease right-of-use assets		$	323	$	298
Lease liabilities:
Operating lease liabilities	Other liabilities	$	368	$	330
Finance lease liabilities	Other liabilities	2		3
Total lease liabilities		$	370	$	333

The calculated amounts of ROU assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used to determine the present value of the minimum lease payments. The following table details the weighted average remaining lease term and discount rate for FHN's operating and finance leases as of December 31, 2025 and 2024.

Table 8.5.3

REMAINING LEASE TERMS

& DISCOUNT RATES

	December 31, 2025		December 31, 2024
Weighted Average Remaining Lease Terms
Operating leases	11.65 years		11.68 years
Finance leases	8.31 years		8.60 years
Weighted Average Discount Rate
Operating leases	3.69	%	3.19	%
Finance leases	2.00	%	2.16	%

The following table provides a detail of the components of lease expense and other lease information for the years ended December 31, 2025, 2024, and 2023.

Table 8.5.4

LEASE EXPENSE & OTHER INFORMATION

(Dollars in millions)	2025		2024		2023
Lease cost
Operating lease cost	$	46	$	44	$	45
Sublease income	(1)		(1)		(2)
Total lease cost	$	45	$	43	$	43
Other information
(Gain) loss on right-of-use asset impairment - operating leases	$	1	$	—	$	1
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	34		43		46
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases	60		22		11

The following table provides a detail of the maturities of FHN's operating and finance lease liabilities as of December 31, 2025.

Table 8.5.5

LEASE LIABILITY MATURITIES

(Dollars in millions)	December 31, 2025
2026	$	45
2027	49
2028	45
2029	42
2030	37
2031 and thereafter	243
Total lease payments	461
Less lease liability interest	(91)
Total lease liability	$	370

FHN had aggregate undiscounted contractual obligations of less than $1 million for lease arrangements that have not commenced as of December 31, 2025. Payments under these arrangements are expected to occur from 2026 through 2031.

First Horizon as Lessor

As a lessor, FHN engages in the leasing of equipment to commercial clients primarily through direct financing and sales-type leases. Direct financing and sales-type leases are similar to other forms of installment lending in that lessors generally do not retain benefits and risks incidental to ownership of the property subject to leases. Such arrangements are essentially financing transactions that permit lessees to acquire and use property. As lessor, the sum of all minimum lease payments over the lease term and the estimated residual value, less unearned interest income, is recorded as the net investment in the lease on the commencement date and is included in loans and leases in the Consolidated Balance Sheets. Interest income is accrued as earned over the term of the lease based on the net investment in leases. Fees incurred to originate the lease are deferred on the commencement date and recognized as an adjustment of the yield on the lease.

FHN’s portfolio of direct financing and sales-type leases contains terms of 3 to 23 years, some of which contain options to extend the lease for various periods of time and/or to purchase the equipment subject to the lease at various points in time. These direct financing and sales-type leases typically include a payment structure set at lease inception and do not provide any additional services. Expenses associated with the leased equipment, such as maintenance and insurance, are paid by the lessee directly to third parties. The lease agreement typically contains an option for the purchase of the leased property by the lessee at the end of the lease term at either the property’s residual value or a specified price. In all cases, FHN expects to sell or re-lease the equipment at the end of the lease term. Due to the nature and structure of FHN’s

direct financing and sales-type leases, there is no selling profit or loss on these transactions.

The components of the Company’s net investment in leases as of December 31, 2025 and 2024 were as follows.

Table 8.5.6

LEASE NET INVESTMENTS

(Dollars in millions)	December 31, 2025		December 31, 2024
Lease receivable	$	1,371	$	1,300
Unearned income	(315)		(279)
Guaranteed residual	164		166
Unguaranteed residual	250		228
Total net investment	$	1,470	$	1,415

Interest income for direct financing or sales-type leases totaled $73 million, $64 million, and $50 million for the years ended December 31, 2025, 2024, and 2023, respectively. There was no profit or loss recognized at the commencement date for direct financing or sales-type leases for the years ended December 31, 2025, 2024, and 2023.

Maturities of the Company's lease receivables as of December 31, 2025 were as follows.

Table 8.5.7

LEASE RECEIVABLE MATURITIES

(Dollars in millions)	December 31, 2025
2026	$	188
2027	165
2028	158
2029	117
2030	165
2031 and thereafter	578
Total future minimum lease payments	$	1,371

Premises, Equipment, and Leases

Premises, Equipment, and Leases

Premises and equipment was comprised of the following at December 31, 2025 and 2024.

Table 8.5.1

PREMISES & EQUIPMENT

(Dollars in millions)	December 31, 2025		December 31, 2024
Land	$	162	$	163
Buildings	575		570
Leasehold improvements	91		88
Furniture, fixtures, and equipment	316		304
Fixed assets held for sale (a)	1		1
Total premises and equipment	1,145		1,126
Less accumulated depreciation and amortization	(601)		(552)
Premises and equipment, net	$	544	$	574

(a) Primarily comprised of land and buildings.

In 2025, FHN recognized $1 million of leased asset impairments, and fixed asset impairments were immaterial. Fixed asset and leased asset impairments were immaterial for 2024 and 2023. Net gains related to the sales of fixed assets were $1 million for 2025, $3 million for 2024, and immaterial for 2023.

First Horizon as Lessee

FHN has operating, financing, and short-term leases for branch locations, corporate offices and certain equipment. Substantially all of these leases are classified as operating leases.

The following table provides details of the classification of FHN's right-of-use assets and lease liabilities included in the Consolidated Balance Sheets.

Table 8.5.2

RIGHT-OF-USE ASSETS & LEASE LIABILITIES

(Dollars in millions)		December 31, 2025		December 31, 2024
Lease right-of-use assets:	Classification
Operating lease right-of-use assets	Other assets	$	321	$	296
Finance lease right-of-use assets	Other assets	2		2
Total lease right-of-use assets		$	323	$	298
Lease liabilities:
Operating lease liabilities	Other liabilities	$	368	$	330
Finance lease liabilities	Other liabilities	2		3
Total lease liabilities		$	370	$	333

The calculated amounts of ROU assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used to determine the present value of the minimum lease payments. The following table details the weighted average remaining lease term and discount rate for FHN's operating and finance leases as of December 31, 2025 and 2024.

Table 8.5.3

REMAINING LEASE TERMS

& DISCOUNT RATES

	December 31, 2025		December 31, 2024
Weighted Average Remaining Lease Terms
Operating leases	11.65 years		11.68 years
Finance leases	8.31 years		8.60 years
Weighted Average Discount Rate
Operating leases	3.69	%	3.19	%
Finance leases	2.00	%	2.16	%

The following table provides a detail of the components of lease expense and other lease information for the years ended December 31, 2025, 2024, and 2023.

Table 8.5.4

LEASE EXPENSE & OTHER INFORMATION

(Dollars in millions)	2025		2024		2023
Lease cost
Operating lease cost	$	46	$	44	$	45
Sublease income	(1)		(1)		(2)
Total lease cost	$	45	$	43	$	43
Other information
(Gain) loss on right-of-use asset impairment - operating leases	$	1	$	—	$	1
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	34		43		46
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases	60		22		11

The following table provides a detail of the maturities of FHN's operating and finance lease liabilities as of December 31, 2025.

Table 8.5.5

LEASE LIABILITY MATURITIES

(Dollars in millions)	December 31, 2025
2026	$	45
2027	49
2028	45
2029	42
2030	37
2031 and thereafter	243
Total lease payments	461
Less lease liability interest	(91)
Total lease liability	$	370

FHN had aggregate undiscounted contractual obligations of less than $1 million for lease arrangements that have not commenced as of December 31, 2025. Payments under these arrangements are expected to occur from 2026 through 2031.

First Horizon as Lessor

As a lessor, FHN engages in the leasing of equipment to commercial clients primarily through direct financing and sales-type leases. Direct financing and sales-type leases are similar to other forms of installment lending in that lessors generally do not retain benefits and risks incidental to ownership of the property subject to leases. Such arrangements are essentially financing transactions that permit lessees to acquire and use property. As lessor, the sum of all minimum lease payments over the lease term and the estimated residual value, less unearned interest income, is recorded as the net investment in the lease on the commencement date and is included in loans and leases in the Consolidated Balance Sheets. Interest income is accrued as earned over the term of the lease based on the net investment in leases. Fees incurred to originate the lease are deferred on the commencement date and recognized as an adjustment of the yield on the lease.

FHN’s portfolio of direct financing and sales-type leases contains terms of 3 to 23 years, some of which contain options to extend the lease for various periods of time and/or to purchase the equipment subject to the lease at various points in time. These direct financing and sales-type leases typically include a payment structure set at lease inception and do not provide any additional services. Expenses associated with the leased equipment, such as maintenance and insurance, are paid by the lessee directly to third parties. The lease agreement typically contains an option for the purchase of the leased property by the lessee at the end of the lease term at either the property’s residual value or a specified price. In all cases, FHN expects to sell or re-lease the equipment at the end of the lease term. Due to the nature and structure of FHN’s

direct financing and sales-type leases, there is no selling profit or loss on these transactions.

The components of the Company’s net investment in leases as of December 31, 2025 and 2024 were as follows.

Table 8.5.6

LEASE NET INVESTMENTS

(Dollars in millions)	December 31, 2025		December 31, 2024
Lease receivable	$	1,371	$	1,300
Unearned income	(315)		(279)
Guaranteed residual	164		166
Unguaranteed residual	250		228
Total net investment	$	1,470	$	1,415

Interest income for direct financing or sales-type leases totaled $73 million, $64 million, and $50 million for the years ended December 31, 2025, 2024, and 2023, respectively. There was no profit or loss recognized at the commencement date for direct financing or sales-type leases for the years ended December 31, 2025, 2024, and 2023.

Maturities of the Company's lease receivables as of December 31, 2025 were as follows.

Table 8.5.7

LEASE RECEIVABLE MATURITIES

(Dollars in millions)	December 31, 2025
2026	$	188
2027	165
2028	158
2029	117
2030	165
2031 and thereafter	578
Total future minimum lease payments	$	1,371

Premises, Equipment, and Leases

Premises, Equipment, and Leases

Premises and equipment was comprised of the following at December 31, 2025 and 2024.

Table 8.5.1

PREMISES & EQUIPMENT

(Dollars in millions)	December 31, 2025		December 31, 2024
Land	$	162	$	163
Buildings	575		570
Leasehold improvements	91		88
Furniture, fixtures, and equipment	316		304
Fixed assets held for sale (a)	1		1
Total premises and equipment	1,145		1,126
Less accumulated depreciation and amortization	(601)		(552)
Premises and equipment, net	$	544	$	574

(a) Primarily comprised of land and buildings.

In 2025, FHN recognized $1 million of leased asset impairments, and fixed asset impairments were immaterial. Fixed asset and leased asset impairments were immaterial for 2024 and 2023. Net gains related to the sales of fixed assets were $1 million for 2025, $3 million for 2024, and immaterial for 2023.

First Horizon as Lessee

FHN has operating, financing, and short-term leases for branch locations, corporate offices and certain equipment. Substantially all of these leases are classified as operating leases.

The following table provides details of the classification of FHN's right-of-use assets and lease liabilities included in the Consolidated Balance Sheets.

Table 8.5.2

RIGHT-OF-USE ASSETS & LEASE LIABILITIES

(Dollars in millions)		December 31, 2025		December 31, 2024
Lease right-of-use assets:	Classification
Operating lease right-of-use assets	Other assets	$	321	$	296
Finance lease right-of-use assets	Other assets	2		2
Total lease right-of-use assets		$	323	$	298
Lease liabilities:
Operating lease liabilities	Other liabilities	$	368	$	330
Finance lease liabilities	Other liabilities	2		3
Total lease liabilities		$	370	$	333

The calculated amounts of ROU assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used to determine the present value of the minimum lease payments. The following table details the weighted average remaining lease term and discount rate for FHN's operating and finance leases as of December 31, 2025 and 2024.

Table 8.5.3

REMAINING LEASE TERMS

& DISCOUNT RATES

	December 31, 2025		December 31, 2024
Weighted Average Remaining Lease Terms
Operating leases	11.65 years		11.68 years
Finance leases	8.31 years		8.60 years
Weighted Average Discount Rate
Operating leases	3.69	%	3.19	%
Finance leases	2.00	%	2.16	%

The following table provides a detail of the components of lease expense and other lease information for the years ended December 31, 2025, 2024, and 2023.

Table 8.5.4

LEASE EXPENSE & OTHER INFORMATION

(Dollars in millions)	2025		2024		2023
Lease cost
Operating lease cost	$	46	$	44	$	45
Sublease income	(1)		(1)		(2)
Total lease cost	$	45	$	43	$	43
Other information
(Gain) loss on right-of-use asset impairment - operating leases	$	1	$	—	$	1
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	34		43		46
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases	60		22		11

The following table provides a detail of the maturities of FHN's operating and finance lease liabilities as of December 31, 2025.

Table 8.5.5

LEASE LIABILITY MATURITIES

(Dollars in millions)	December 31, 2025
2026	$	45
2027	49
2028	45
2029	42
2030	37
2031 and thereafter	243
Total lease payments	461
Less lease liability interest	(91)
Total lease liability	$	370

FHN had aggregate undiscounted contractual obligations of less than $1 million for lease arrangements that have not commenced as of December 31, 2025. Payments under these arrangements are expected to occur from 2026 through 2031.

First Horizon as Lessor

As a lessor, FHN engages in the leasing of equipment to commercial clients primarily through direct financing and sales-type leases. Direct financing and sales-type leases are similar to other forms of installment lending in that lessors generally do not retain benefits and risks incidental to ownership of the property subject to leases. Such arrangements are essentially financing transactions that permit lessees to acquire and use property. As lessor, the sum of all minimum lease payments over the lease term and the estimated residual value, less unearned interest income, is recorded as the net investment in the lease on the commencement date and is included in loans and leases in the Consolidated Balance Sheets. Interest income is accrued as earned over the term of the lease based on the net investment in leases. Fees incurred to originate the lease are deferred on the commencement date and recognized as an adjustment of the yield on the lease.

FHN’s portfolio of direct financing and sales-type leases contains terms of 3 to 23 years, some of which contain options to extend the lease for various periods of time and/or to purchase the equipment subject to the lease at various points in time. These direct financing and sales-type leases typically include a payment structure set at lease inception and do not provide any additional services. Expenses associated with the leased equipment, such as maintenance and insurance, are paid by the lessee directly to third parties. The lease agreement typically contains an option for the purchase of the leased property by the lessee at the end of the lease term at either the property’s residual value or a specified price. In all cases, FHN expects to sell or re-lease the equipment at the end of the lease term. Due to the nature and structure of FHN’s

direct financing and sales-type leases, there is no selling profit or loss on these transactions.

The components of the Company’s net investment in leases as of December 31, 2025 and 2024 were as follows.

Table 8.5.6

LEASE NET INVESTMENTS

(Dollars in millions)	December 31, 2025		December 31, 2024
Lease receivable	$	1,371	$	1,300
Unearned income	(315)		(279)
Guaranteed residual	164		166
Unguaranteed residual	250		228
Total net investment	$	1,470	$	1,415

Interest income for direct financing or sales-type leases totaled $73 million, $64 million, and $50 million for the years ended December 31, 2025, 2024, and 2023, respectively. There was no profit or loss recognized at the commencement date for direct financing or sales-type leases for the years ended December 31, 2025, 2024, and 2023.

Maturities of the Company's lease receivables as of December 31, 2025 were as follows.

Table 8.5.7

LEASE RECEIVABLE MATURITIES

(Dollars in millions)	December 31, 2025
2026	$	188
2027	165
2028	158
2029	117
2030	165
2031 and thereafter	578
Total future minimum lease payments	$	1,371