Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

Schedule of Components of Consolidated Statements of Income and Equity

The aggregate amount of income taxes included in the Consolidated Statements of Income and the Consolidated Statements of Changes in Equity for the years ended December 31 were as follows.

Table 8.14.1

INCOME TAX EXPENSE

(Dollars in millions)	2025		2024		2023
Consolidated Statements of Income:
Income tax expense	$	282	$	211	$	212
Consolidated Statements of Changes in Equity:
Income tax expense (benefit) related to:
Net unrealized gains (losses) on securities available for sale	88		17		44
Net unrealized gains (losses) on cash flow hedges	17		(5)		15
Net unrealized gains (losses) on pension and other postretirement plans	(1)		7		(1)
Total	$	386	$	230	$	270

Schedule of Income (Loss) from Continuing Operations before Income Tax Expense (Benefit)

All income (loss) from continuing operations before income tax expense (benefit) is domestic.

Table 8.14.2

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAX EXPENSE (BENEFIT)

(Dollars in millions)	2025		2024		2023
United States	$	1,280	$	1,005	$	1,128

Schedule of Components of Income Tax Expense/(Benefit)

The components of income tax expense (benefit) for the years ended December 31 were as follows.

Table 8.14.3

INCOME TAX EXPENSE COMPONENTS

(Dollars in millions)	2025		2024		2023
Current:
Federal	$	201	$	204	$	140
State	32		24		28
	233		228		168
Deferred:
Federal	44		(14)		37
State	5		(3)		7
	49		(17)		44
Total:
Federal	245		190		177
State	37		21		35
Total income tax expense (benefit)	$	282	$	211	$	212

Schedule of Computation of Income Tax Expense Differed from the Amounts Computed by Applying Statutory Federal Income Tax Rate to Income/(Loss) from Continuing Operations Before Income Taxes

A reconciliation of expected income tax expense (benefit) at the federal statutory rate of 21% for 2025, 2024, and 2023, respectively, to total income tax expense follows.

Table 8.14.4

RECONCILIATION FROM STATUTORY RATES

	2025				2024				2023
(Dollars in millions)	Amount		Percent		Amount		Percent		Amount		Percent
U.S. federal statutory income tax rate	$	269	21.0	%	$	211	21.0	%	$	237	21.0	%
Domestic federal
Tax credits
LIHTC credits and benefits, net of amortization	(17)		(1.2)		(13)		(1.3)		(15)		(1.3)
Other tax credits	(1)		(0.1)		(1)		(0.1)		(5)		(0.5)
Nontaxable and nondeductible items
Tax-exempt interest	(10)		(0.8)		(12)		(1.1)		(12)		(1.0)
FDIC premium	10		0.8		12		1.1		11		1.0
Other nontaxable and nondeductible items	3		0.2		1		0.1		(1)		(0.1)
Termination of BOLI policies	—		—		—		—		21		1.9
Other	(3)		(0.2)		(5)		(0.5)		(8)		(0.7)
Domestic state and local income taxes, net of federal effect (a)	32		2.5		20		2.0		34		3.0
Changes in unrecognized tax benefits	(1)		(0.1)		(2)		(0.2)		(50)		(4.5)
Reported income tax (benefit) expense and ETR	$	282	22.1	%	$	211	21.0	%	$	212	18.8	%

(a)In 2025, state and local income taxes in Tennessee, Florida, and California comprise the majority of the tax effect in this category. In 2024 and 2023, state and local income taxes in Tennessee and Florida comprise the majority of the tax effect in this category.

Schedule of Net DTA Balances Related to Income Tax Carryforwards

As of December 31, 2025, FHN had net deferred tax asset balances related to federal and state income tax carryforwards of $36 million and $4 million, respectively, which will expire at various dates as follows.

Table 8.14.5

TAX CARRYFORWARD DTA EXPIRATION DATES

(Dollars in millions)	Expiration Dates	Net Deferred Tax Asset Balance
Losses - federal	2028 - 2035	$	25
Credits - federal	2045	11
Net operating losses - states	2026 - 2035	2
Net operating losses - states	2036 - 2041	1
Credits - states	2030	1

Schedule of Deferred Tax Assets and Liabilities

Temporary differences which gave rise to deferred tax assets and deferred tax liabilities on December 31, 2025 and 2024 were as follows.

Table 8.14.6

COMPONENTS OF DTAs & DTLs

(Dollars in millions)	2025		2024
Deferred tax assets:
Securities available for sale and financial instruments (a)	$	180	$	284
Loan valuations and loss reserves	179		152
Employee benefits	121		119
Lease liability	91		82
Depreciation and amortization	19		54
Federal carryforwards	36		29
State carryforwards	4		3
Other	42		45
Gross deferred tax assets	$	672	$	768
Deferred tax liabilities:
Leasing	$	398	$	363
ROU lease asset	80		73
Other intangible assets	67		71
Other	35		34
Gross deferred tax liabilities	580		541
Net deferred tax assets	$	92	$	227

(a)    Tax effects of unrealized gains and losses are tracked on a portfolio basis.

Schedule of Rollforward of Unrecognized Tax Benefits

The rollforward of unrecognized tax benefits is shown in the following table.

Table 8.14.7

ROLLFORWARD OF UNRECOGNIZED TAX BENEFITS

(Dollars in millions)
Balance at December 31, 2023	$	15
Increases related to prior year tax positions	2
Increases related to current year tax positions	3
Lapse of statutes	(7)
Balance at December 31, 2024	$	13
Increases related to prior year tax positions	1
Increases related to current year tax positions	4
Settlements	(3)
Lapse of statutes	(3)
Balance at December 31, 2025	$	12

Schedule of Income Taxes Paid, Net of Refunds Received

The following table presents income taxes paid, net of refunds received, by jurisdiction for the years ended December 31, 2025, 2024, and 2023.

Table 8.14.8

INCOME TAXES PAID (NET OF REFUNDS RECEIVED)

(Dollars in millions)	2025		2024		2023
U.S. federal	$	31	$	74	$	56
U.S. state and local:
California	6		*		*
North Carolina	4		*		*
Tennessee	3		*		15
New York State	3		*		*
Florida	*		*		6
Other	13		25		27
Total	$	60	$	99	$	104

*Jurisdiction below the threshold for the period presented.