Term Borrowings

12 Months Ended

Dec. 31, 2019

The following table presents information pertaining to Term Borrowings reported on FHN’s Consolidated Statements of Condition on December 31:



(Dollars in thousands)	2019		2018
First Horizon Bank:
Senior capital notes (a)
Maturity date – December 1, 2019 – 2.95%	$	—	$	395,872
Other collateralized borrowings – Maturity date – December 22, 2037
2.19% on December 31, 2019 and 3.09% on December 31, 2018 (b)	80,908		76,642
Other collateralized borrowings - SBA loans (c)	21,975		16,607
First Horizon National Corporation:
Senior capital notes (a)
Maturity date – December 15, 2020 – 3.50%	497,656		486,739
Junior subordinated debentures (d)
Maturity date - June 28, 2035 - 3.57% on December 31, 2019 and 4.47% on December 31, 2018	2,752		2,730
Maturity date - December 15, 2035 - 3.26% on December 31, 2019 and 4.16% on December 31, 2018	17,642		17,456
Maturity date - March 15, 2036 - 3.29% on December 31, 2019 and 4.19% on December 31, 2018	8,847		8,757
Maturity date - March 15, 2036 - 3.43% on December 31, 2019 and 4.33% on December 31, 2018	11,692		11,587
Maturity date - June 30, 2036 - 3.28% on December 31, 2019 and 4.12% on December 31, 2018	26,217		25,931
Maturity date - July 7, 2036 - 3.54% on December 31, 2019 and 3.99% on December 31, 2018	17,964		17,803
Maturity date - June 15, 2037 - 3.54% on December 31, 2019 and 4.44% on December 31, 2018	50,681		50,278
Maturity date - September 6, 2037 - 3.32% on December 31, 2019 and 4.17% on December 31, 2018	8,798		8,713
FT Real Estate Securities Company, Inc.:
Cumulative preferred stock (e)
Maturity date – March 31, 2031 – 9.50%	46,236		46,168
First Horizon ABS Trusts:
Other collateralized borrowings (f) (g)
Maturity date – October 25, 2034
2.66% on December 31, 2018	—		2,981
First Tennessee New Markets Corporation Investments:
Maturity date – August 08, 2036 – 2.38% (f)	—		2,699
Total	$	791,368	$	1,170,963


(a)	Changes in the fair value of debt attributable to interest rate risk are hedged. First Horizon Bank early redeemed the senior debt on November 1, 2019. Refer to Note 22 – Derivatives.


(b)	Secured by trust preferred loans.


(c)	Collateralized borrowings associated with SBA loan sales that did not meet sales criteria. The loans have remaining terms of 3 to 25 years. These borrowings had a weighted average interest rate of 3.95 percent on December 31, 2019 and 2018, respectively.


(d)	Acquired in conjunction with the acquisition of CBF. A portion qualifies for Tier 2 capital under the risk-based capital guidelines.


(e)	A portion qualifies for Tier 2 capital under the risk-based capital guidelines.


(f)	Debt retired during 2019. See Note 21- Variable Interest Entities for additional information.


(g)	On December 31, 2018, borrowings secured by $16.2 million of residential real estate loans.

Annual principal repayment requirements as of December 31, 2019 are as follows:



(Dollars in thousands)
2020	$	500,000
2021	—
2022	236
2023	—
2024	—
2025 and after	316,661

In conjunction with the acquisition of CBF, FHN acquired junior subordinated debentures with aggregate par values of $212.4 million. Each of these issuances is held by a wholly owned trust that has issued trust preferred securities to external investors and loaned the funds to FHN, as successor to CBF, as junior subordinated debt. The book value for each issuance represents the purchase accounting fair value as of the closing date less accumulated amortization of the associated discount, as applicable. Through various contractual arrangements FHN assumed a full and unconditional guarantee for each trust’s obligations with respect to the securities. While the maturity dates are typically 30 years from the original issuance date, FHN has the option to redeem each of the junior subordinated debentures at par on any future interest payment date, which would trigger redemption of the related trust preferred securities. The junior subordinated debentures are included in the Consolidated Statements of Condition in Term borrowings. A portion of FHN's junior subordinated notes qualify as Tier 2 capital under the risk-based capital guidelines. FHN retired $45.4 million of this debt and the related trust preferred securities in 2018.