Investment Securities

The following table summarizes FHN’s investment securities as of March 31, 2026 and December 31, 2025.


INVESTMENT SECURITIES
	March 31, 2026
(Dollars in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities available for sale:

Government agency issued MBS	$	3,852	$	4	$	(331)	$	3,525
Government agency issued CMO	3,026		4		(238)		2,792
Other U.S. government agencies	1,603		3		(106)		1,500

States and municipalities	360		1		(32)		329
Total securities available for sale (a)	$	8,841	$	12	$	(707)	$	8,146

Securities held to maturity:
Government agency issued MBS	$	749	$	—	$	(78)	$	671
Government agency issued CMO	455		—		(70)		385
Total securities held to maturity (a)	$	1,204	$	—	$	(148)	$	1,056


	December 31, 2025
(Dollars in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities available for sale:

Government agency issued MBS	$	3,964	$	9	$	(332)	$	3,641
Government agency issued CMO	3,092		6		(229)		2,869
Other U.S. government agencies	1,424		2		(109)		1,317

States and municipalities	361		2		(25)		338
Total securities available for sale (a)	$	8,841	$	19	$	(695)	$	8,165

Securities held to maturity:
Government agency issued MBS	$	758	$	—	$	(76)	$	682
Government agency issued CMO	458		—		(67)		391
Total securities held to maturity (a)	$	1,216	$	—	$	(143)	$	1,073

(a)Includes $7.3 billion and $7.2 billion of securities available for sale as of March 31, 2026 and December 31, 2025, respectively and $1.1 billion of securities held to maturity as of both March 31, 2026 and December 31, 2025 pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes.

The amortized cost and fair value by contractual maturity for the debt securities portfolio as of March 31, 2026 is provided below.


DEBT SECURITIES PORTFOLIO MATURITIES
	Held to Maturity				Available for Sale
(Dollars in millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Within 1 year	$	—	$	—	$	16	$	16
After 1 year through 5 years	—		—		139		127
After 5 years through 10 years	—		—		705		682
After 10 years	—		—		1,103		1,004
Subtotal	—		—		1,963		1,829
Government agency issued MBS and CMO (a)	1,204		1,056		6,878		6,317
Total	$	1,204	$	1,056	$	8,841	$	8,146

(a)Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

There were no sales of AFS securities for the three months ended March 31, 2026 and 2025.

The following table provides information on investments within the available-for-sale portfolio that had unrealized losses as of March 31, 2026 and December 31, 2025.

AFS INVESTMENT SECURITIES WITH UNREALIZED LOSSES


	As of March 31, 2026
	Less than 12 months				12 months or longer				Total
(Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses

Government agency issued MBS	$	359	$	(2)	$	2,700	$	(329)	$	3,059	$	(331)
Government agency issued CMO	556		(1)		1,623		(237)		2,179		(238)
Other U.S. government agencies	328		(1)		771		(105)		1,099		(106)

States and municipalities	61		(1)		211		(31)		272		(32)
Total	$	1,304	$	(5)	$	5,305	$	(702)	$	6,609	$	(707)


	As of December 31, 2025
	Less than 12 months				12 months or longer				Total
(Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses

Government agency issued MBS	$	190	$	(1)	$	2,791	$	(331)	$	2,981	$	(332)
Government agency issued CMO	353		—		1,706		(229)		2,059		(229)
Other U.S. government agencies	281		(1)		796		(108)		1,077		(109)

States and municipalities	1		—		236		(25)		237		(25)
Total	$	825	$	(2)	$	5,529	$	(693)	$	6,354	$	(695)

FHN has evaluated all AFS debt securities that were in unrealized loss positions in accordance with its accounting policy for recognition of credit losses. No AFS debt securities were determined to have credit losses. Total AIR not included in the fair value or amortized cost basis of AFS debt securities was $26 million and $28 million as of March 31, 2026 and December 31, 2025, respectively. Consistent with FHN's review of the related securities, there were no credit-related write-downs of AIR for AFS debt securities during the reporting periods. Additionally, for AFS debt securities with unrealized losses, FHN does not intend to sell them, and it is more likely than not that FHN will not be required to sell them prior to recovery. Therefore, no write-downs of these investments to fair value occurred during the reporting periods. There were no transfers to or from AFS or HTM during the three months ended March 31, 2026 and 2025.

For HTM securities, an allowance for credit losses is required to absorb estimated lifetime credit losses. Total AIR not included in the fair value or amortized cost basis of HTM debt securities was $3 million as of both March 31, 2026 and December 31, 2025. FHN has assessed the risk of credit loss and has determined that no allowance for credit losses for HTM securities was necessary as of March 31, 2026 and December 31, 2025. The evaluation of credit risk includes consideration of third-party and government guarantees (both explicit and implicit), senior or subordinated status, credit ratings of the issuer, the effects of interest rate changes since purchase and observable market information such as issuer-specific credit spreads.

The carrying amount of equity investments without a readily determinable fair value was $122 million and $119 million at March 31, 2026 and December 31, 2025, respectively. The year-to-date 2026 and 2025 gross amounts of upward and downward valuation adjustments were not significant.

For equity investments with readily determinable fair values, net unrealized losses of less than $1 million and $2 million were recognized in the three months ended March 31, 2026 and 2025, respectively.