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Business Segment Information
 12 Months Ended
Dec. 31, 2025
Segment Reporting, Measurement Disclosures [Abstract]  
Business Segment Information Business Segment Information
During 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 prior periods 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 table presents financial information for each reportable business segment for the years ended December 31.
Table 8.19.1
SEGMENT FINANCIAL INFORMATION
2025
(Dollars in millions)Commercial, Consumer & WealthWholesaleCorporateConsolidated
Interest income$3,317 $555 $314 $4,186 
Interest expense1,156 107 301 1,564 
Funds transfer pricing408 (215)(193)— 
Net interest income (expense)2,569 233 (180)2,622 
Noninterest income464 256 77 797 
Total revenues3,033 489 (103)3,419 
Noninterest expense (c)(d)1,443 320 311 2,074 
Pre-provision net revenue (f)1,590 169 (414)1,345 
Provision for credit losses50 12 3 65 
Income (loss) before income taxes1,540 157 (417)1,280 
Income tax expense (benefit)367 37 (122)282 
Net income (loss)$1,173 $120 $(295)$998 
Average assets$58,820 $9,360 $13,839 $82,019 
Depreciation and amortization19 7 38 64 
Expenditures for long-lived assets18 1 9 28 
2024
(Dollars in millions)Commercial, Consumer & WealthWholesaleCorporateConsolidated
Interest income$3,538 $525 $289 $4,352 
Interest expense1,413 125 303 1,841 
Funds transfer pricing406 (206)(200)— 
Net interest income (expense)2,531 194 (214)2,511 
Noninterest income (a)461 230 (12)679 
Total revenues2,992 424 (226)3,190 
Noninterest expense (c)(d)1,417 299 319 2,035 
Pre-provision net revenue (f)1,575 125 (545)1,155 
Provision for credit losses158 3 (11)150 
Income (loss) before income taxes1,417 122 (534)1,005 
Income tax expense (benefit)334 29 (152)211 
Net income (loss)$1,083 $93 $(382)$794 
Average assets$59,398 $8,120 $14,304 $81,822 
Depreciation and amortization38 6 57 101 
Expenditures for long-lived assets26 1 18 45 
2023
(Dollars in millions)Commercial, Consumer & WealthWholesaleCorporateConsolidated
Interest income$3,286 $478 $336 $4,100 
Interest expense1,115 100 345 1,560 
Funds transfer pricing312 (201)(111)— 
Net interest income (expense)2,483 177 (120)2,540 
Noninterest income (a)448 174 305 927 
Total revenues2,931 351 185 3,467 
Noninterest expense (b)(c)(d)1,372 277 430 2,079 
Pre-provision net revenue (f)1,559 74 (245)1,388 
Provision for credit losses260 15 (15)260 
Income (loss) before income taxes1,299 59 (230)1,128 
Income tax expense (benefit) (e)305 14 (107)212 
Net income (loss)$994 $45 $(123)$916 
Average assets$58,109 $7,581 $15,993 $81,683 
Depreciation and amortization34 7 61 102 
Expenditures for long-lived assets16 1 17 34 
(a)2024 includes a $91 million loss on securities following the restructuring of a portion of the AFS securities portfolio. 2023 includes a $225 million gain on merger termination and a $6 million loss on equities valuation adjustments in the Corporate segment and a $9 million gain on an FHN Financial asset disposition in the Wholesale segment.
(b)2023 includes $51 million in merger and integration expenses related to the TD Transaction in the Corporate Segment.
(c)2025 includes an FDIC special assessment expense credit of $9 million and a $4 million expense credit related to an accrual release in deferred compensation in the Corporate segment. 2024 includes $14 million of restructuring costs and an FDIC special assessment of $9 million in the Corporate segment. 2023 includes $10 million of restructuring costs, an FDIC special assessment of $68 million, and a $50 million contribution to the First Horizon Foundation in the Corporate segment.
(d)2025, 2024, and 2023 include $25 million, $15 million, and $15 million, respectively, in derivative valuation adjustments related to prior Visa Class B share sales in the Corporate segment.
(e)2023 includes $24 million in expense related to the surrender of bank-owned life insurance policies and a $59 million benefit from merger-related tax items in the Corporate segment.
(f)Pre-provision net revenue is a non-GAAP measure and is reconciled to income (loss) before income taxes (GAAP) in this table.
The following table presents a disaggregation of FHN’s noninterest income by major product line and reportable segment for the years ended December 31, 2025, 2024, and 2023.
Table 8.19.2
NONINTEREST INCOME DETAIL BY SEGMENT
December 31, 2025
(Dollars in millions)Commercial, Consumer & WealthWholesaleCorporateConsolidated
Noninterest income:
Fixed income (a)$— $206 $— $206 
Deposit transactions and cash management158 3 8 169 
Brokerage, management fees and commissions105 — — 105 
Card and digital banking fees64 — 10 74 
Other service charges and fees57 3 — 60 
Trust services and investment management50 — 1 51 
Mortgage banking income
1 41 1 43 
Securities gains (losses), net (b)— — 1 1 
Other income (c)29 3 56 88 
     Total noninterest income$464 $256 $77 $797 
December 31, 2024
(Dollars in millions)Commercial, Consumer & WealthWholesaleCorporateConsolidated
Noninterest income:
Fixed income (a)$— $187 $— $187 
Deposit transactions and cash management163 4 9 176 
Brokerage, management fees and commissions101 — — 101 
Card and digital banking fees67 — 10 77 
Other service charges and fees48 2 1 51 
Trust services and investment management47 — 1 48 
Mortgage banking income
1 33 1 35 
Securities gains (losses), net (b)— — (89)(89)
Other income (c)34 4 55 93 
     Total noninterest income$461 $230 $(12)$679 
December 31, 2023
(Dollars in millions)Commercial, Consumer & WealthWholesaleCorporateConsolidated
Noninterest income:
Fixed income (a)$— $134 $(1)$133 
Deposit transactions and cash management165 4 10 179 
Brokerage, management fees and commissions90 — — 90 
Card and digital banking fees67 — 10 77 
Other service charges and fees51 3 — 54 
Trust services and investment management46 — 1 47 
Mortgage banking income
1 21 1 23 
Gain on merger termination— — 225 225 
Securities gains (losses), net (b)— — (4)(4)
Other income (c)28 12 63 103 
     Total noninterest income$448 $174 $305 $927 
(a)2025, 2024, and 2023 include $40 million, $42 million, and $42 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 table presents a disaggregation of FHN’s noninterest expense by major product line and reportable segment for the years ended December 31, 2025, 2024, and 2023.
Table 8.19.3
NONINTEREST EXPENSE DETAIL BY SEGMENT
December 31, 2025
(Dollars in millions)Commercial, Consumer & WealthWholesaleCorporateConsolidated
Noninterest expense:
Personnel expense$542 $214 $403 $1,159 
Net occupancy expense77 9 53 139 
Computer software32 7 99 138 
Operations services17 23 56 96 
Legal and professional fees17 4 65 86 
Advertising and public relations7 1 46 54 
Deposit insurance expense— — 42 42 
Contract employment and outsourcing5 4 29 38 
Amortization of intangible assets35 1 2 38 
Contributions1 — 25 26 
Other expense80 27 151 258 
Cost allocations630 30 (660)— 
Total noninterest expense$1,443 $320 $311 $2,074 
December 31, 2024
(Dollars in millions)Commercial, Consumer & WealthWholesaleCorporateConsolidated
Noninterest expense:
Personnel expense$539 $196 $402 $1,137 
Net occupancy expense76 9 45 130 
Computer software32 5 84 121 
Operations services17 22 55 94 
Legal and professional fees11 3 50 64 
Advertising and public relations7 1 40 48 
Deposit insurance expense— — 64 64 
Contract employment and outsourcing5 3 43 51 
Amortization of intangible assets39 2 3 44 
Contributions2 — 16 18 
Other expense96 27 141 264 
Cost allocations593 31 (624)— 
Total noninterest expense$1,417 $299 $319 $2,035 
December 31, 2023
(Dollars in millions)Commercial, Consumer & WealthWholesaleCorporateConsolidated
Noninterest expense:
Personnel expense$526 $178 $396 $1,100 
Net occupancy expense72 9 42 123 
Computer software29 5 77 111 
Operations services19 25 43 87 
Legal and professional fees10 3 36 49 
Advertising and public relations7 1 63 71 
Deposit insurance expense— — 122 122 
Contract employment and outsourcing6 4 39 49 
Amortization of intangible assets42 2 3 47 
Contributions2 — 59 61 
Other expense94 27 138 259 
Cost allocations565 23 (588)— 
Total noninterest expense$1,372 $277 $430 $2,079