v3.26.1
Loans and Leases
 3 Months Ended
Mar. 31, 2026
Receivables [Abstract]  
Loans and Leases Loans and Leases
The loan and lease portfolio is disaggregated into portfolio segments and then further disaggregated into classes for certain disclosures. GAAP defines a portfolio segment as the level at which an entity develops and documents a systematic method for determining its allowance for credit losses. A class is generally a disaggregation of a portfolio segment and is generally determined based on risk characteristics of the loan and FHN’s method for monitoring and assessing credit risk and performance. FHN's loan and lease portfolio segments are commercial and consumer. The classes of loans and leases are: (1) commercial, financial, and industrial, which includes
commercial and industrial loans and leases and loans to mortgage companies, (2) commercial real estate, (3) consumer real estate, which includes both real estate installment and home equity lines of credit, and (4) credit card and other.
The following table provides the amortized cost basis of loans and leases by portfolio segment and class as of March 31, 2026 and December 31, 2025, excluding accrued interest of $247 million and $257 million, respectively, which is included in other assets in the Consolidated Balance Sheets.
LOANS AND LEASES BY PORTFOLIO SEGMENT
(Dollars in millions)March 31, 2026December 31, 2025
Commercial:
Commercial and industrial (a)$31,826 $31,202 
Loans to mortgage companies4,641 4,703 
   Total commercial, financial, and industrial 36,467 35,905 
Commercial real estate13,420 13,563 
Consumer:
HELOC2,163 2,164 
Real estate installment loans11,765 11,944 
   Total consumer real estate13,928 14,108 
Credit card and other (b)562 580 
Loans and leases$64,377 $64,156 
Allowance for loan and lease losses(730)(738)
Net loans and leases$63,647 $63,418 
(a)Includes equipment financing leases of $1.5 billion for both March 31, 2026 and December 31, 2025.
(b)Includes $157 million and $143 million of commercial credit card balances as of March 31, 2026 and December 31, 2025, respectively.

Restrictions
Loans and leases with carrying values of $45.6 billion and $45.1 billion were pledged as collateral for borrowings at March 31, 2026 and December 31, 2025, respectively.
Concentrations of Credit Risk
Most of FHN’s business activity is with clients located in the southern United States. FHN’s lending activity is concentrated in its market areas within those states. As of March 31, 2026, FHN had loans to mortgage companies of $4.6 billion and loans to finance and insurance companies of $4.1 billion. As a result, 24% of the C&I portfolio is sensitive to impacts on the financial services industry.
Credit Quality Indicators
FHN employs a dual grade commercial risk grading methodology to assign an estimate for the probability of default and the loss given default for each commercial loan using factors specific to various industry, portfolio, or product segments that result in a rank ordering of risk and the assignment of grades PD 1 to PD 16. This credit grading
system is intended to identify and measure the credit quality of the loan and lease portfolio by analyzing the migration between grading categories. It is also integral to the estimation methodology utilized in determining the ALLL since an allowance is established for pools of commercial loans based on the credit grade assigned. Each PD grade corresponds to an estimated one-year default probability percentage. PD grades are continually evaluated but require a formal scorecard annually.
PD 1 through PD 12 are “pass” grades. PD grades 13-16 correspond to the regulatory-defined categories of special mention (13), substandard (14), doubtful (15), and loss (16). Special mention commercial loans and leases have potential weaknesses that, if left uncorrected, may result in deterioration of FHN's credit position at some future date. Substandard commercial loans and leases have well-defined weaknesses and are characterized by the distinct possibility that FHN will sustain some loss if the deficiencies are not corrected. Doubtful commercial loans and leases have the same weaknesses as substandard loans and leases with the added characteristics that the
probability of loss is high and collection of the full amount is improbable.
The following tables provide the amortized cost basis of the commercial loan portfolio by year of origination and
credit quality indicator as of March 31, 2026 and December 31, 2025.
C&I PORTFOLIO
March 31, 2026
(Dollars in millions)20262025202420232022Prior to 2022LMC (a)Revolving
 Loans		Revolving Loans Converted
to Term Loans		Total
Credit Quality Indicator:
Pass (PD grades 1 through 12)$1,284 $4,441 $4,788 $1,881 $2,536 $5,465 $4,614 $9,642 $239 $34,890 
Special Mention (PD grade 13)2 19 79 61 32 81 27 94 7 402 
Substandard, Doubtful, or Loss (PD grades 14, 15, and 16)13 80 112 108 239 320 — 296 7 1,175 
Total C&I loans$1,299 $4,540 $4,979 $2,050 $2,807 $5,866 $4,641 $10,032 $253 $36,467 
December 31, 2025
(Dollars in millions)20252024202320222021Prior to 2021LMC (a)Revolving
 Loans		Revolving Loans Converted
to Term Loans		Total
Credit Quality Indicator:
Pass (PD grades 1 through 12)$4,492 $5,124 $2,012 $2,706 $1,749 $3,997 $4,703 $9,448 $210 $34,441 
Special Mention (PD grade 13)7 55 42 78 30 61 — 123 6 402 
Substandard, Doubtful, or Loss (PD grades 14, 15, and 16)52 86 92 207 152 182 — 283 8 1,062 
Total C&I loans$4,551 $5,265 $2,146 $2,991 $1,931 $4,240 $4,703 $9,854 $224 $35,905 
(a) LMC includes non-revolving commercial lines of credit to qualified mortgage companies primarily for the temporary warehousing of eligible mortgage loans prior to the borrower's sale of those mortgage loans to third-party investors. The loans are of short duration with maturities less than one year.


CRE PORTFOLIO
March 31, 2026
(Dollars in millions)20262025202420232022Prior to 2022Revolving
 Loans		Revolving Loans Converted
to Term Loans		Total
Credit Quality Indicator:
Pass (PD grades 1 through 12) $429 $1,480 $975 $1,600 $2,189 $5,128 $305 $61 $12,167 
Special Mention (PD grade 13)— — — 68 92 85 3 — 248 
Substandard, Doubtful, or Loss (PD grades 14, 15, and 16)— 4 13 49 407 500 32 — 1,005 
Total CRE loans$429 $1,484 $988 $1,717 $2,688 $5,713 $340 $61 $13,420 

December 31, 2025
(Dollars in millions)20252024202320222021Prior to 2021Revolving
 Loans		Revolving Loans Converted
to Term Loans		Total
Credit Quality Indicator:
Pass (PD grades 1 through 12)$1,362 $1,011 $1,726 $2,314 $1,873 $3,457 $293 $93 $12,129 
Special Mention (PD grade 13)— — 1 191 92 88 33 — 405 
Substandard, Doubtful, or Loss (PD grades 14, 15, and 16)10 11 9 480 152 321 46 — 1,029 
Total CRE loans$1,372 $1,022 $1,736 $2,985 $2,117 $3,866 $372 $93 $13,563 
The consumer portfolio is comprised primarily of smaller-balance loans which are very similar in nature in that most are standard products and are backed by residential real estate. Because of the similarities of consumer loan types, FHN is able to utilize the FICO score, among other attributes, to assess the credit quality of consumer borrowers. FICO scores are refreshed on a quarterly basis in an attempt to reflect the recent risk profile of the borrowers. Accruing delinquency amounts are indicators of asset quality within the credit card and other consumer portfolio.
The following table reflects the amortized cost basis by year of origination and refreshed FICO scores for consumer
real estate loans as of March 31, 2026 and December 31, 2025. Within consumer real estate, classes include HELOC and real estate installment loans. HELOCs are loans which during their draw period are classified as revolving loans. Once the draw period ends and the loan enters its repayment period, the loan converts to a term loan and is classified as a revolving loan converted to a term loan. All loans classified in the following table as revolving loans or revolving loans converted to term loans are HELOCs. Real estate installment loans are originated as fixed term loans and are classified below in their vintage year. All loans in the following table classified in a vintage year are real estate installment loans.

CONSUMER REAL ESTATE PORTFOLIO
March 31, 2026
(Dollars in millions)20262025202420232022Prior to 2022Revolving LoansRevolving Loans Converted to Term LoansTotal
FICO score 740 or greater$156 $928 $987 $1,398 $2,033 $3,916 $1,508 $69 $10,995 
FICO score 720-73920 97 80 88 112 267 154 12 830 
FICO score 700-71924 69 45 65 85 210 137 11 646 
FICO score 660-69913 84 56 93 113 248 141 22 770 
FICO score 620-6591 27 35 30 26 115 36 9 279 
FICO score less than 620 5 29 30 44 47 189 41 23 408 
Total consumer real estate loans$219 $1,234 $1,233 $1,718 $2,416 $4,945 $2,017 $146 $13,928 
December 31, 2025
(Dollars in millions)20252024202320222021Prior to 2021Revolving LoansRevolving Loans Converted
to Term Loans		Total
FICO score 740 or greater$920 $922 $1,330 $1,830 $1,430 $1,924 $1,551 $75 $9,982 
FICO score 720-739119 139 173 250 193 324 182 17 1,397 
FICO score 700-71994 90 125 202 159 250 134 14 1,068 
FICO score 660-69992 128 145 163 90 268 115 19 1,020 
FICO score 620-6599 11 10 16 18 102 22 5 193 
FICO score less than 620 25 25 20 19 23 306 15 15 448 
Total consumer real estate loans$1,259 $1,315 $1,803 $2,480 $1,913 $3,174 $2,019 $145 $14,108 
The following table reflects the amortized cost basis by year of origination and refreshed FICO scores for credit card and other loans as of March 31, 2026 and December 31, 2025.

CREDIT CARD & OTHER PORTFOLIO
March 31, 2026
(Dollars in millions)20262025202420232022Prior to 2022Revolving LoansRevolving Loans Converted to Term LoansTotal
FICO score 740 or greater$3 $25 $8 $8 $3 $14 $199 $6 $266 
FICO score 720-739— 1 1 — 1 3 22 1 29 
FICO score 700-719— 3 1 1 — 2 25 1 33 
FICO score 660-699— 1 1 1 — 3 24 2 32 
FICO score 620-659— 1 1 — — 1 14 1 18 
FICO score less than 620 3 6 4 4 2 45 119 1 184 
Total credit card and other loans$6 $37 $16 $14 $6 $68 $403 $12 $562 
December 31, 2025
(Dollars in millions)20252024202320222021Prior to 2021Revolving LoansRevolving Loans Converted
to Term Loans		Total
FICO score 740 or greater$25 $8 $8 $3 $2 $8 $197 $6 $257 
FICO score 720-7392 1 1 — — 1 13 1 19 
FICO score 700-7192 1 — 1 — — 12 1 17 
FICO score 660-6991 — — — — 1 6 1 9 
FICO score 620-6591 1 — — — — 7 1 10 
FICO score less than 620 5 4 4 3 2 48 202 — 268 
Total credit card and other loans$36 $15 $13 $7 $4 $58 $437 $10 $580 

Nonaccrual and Past Due Loans and Leases
Loans and leases are placed on nonaccrual if it becomes evident that full collection of principal and interest is at risk, impairment has been recognized as a partial charge-off of principal balance due to insufficient collateral value and past due status, or on a case-by-case basis if FHN continues to receive payments but there are other borrower-specific issues. Included in nonaccrual are loans
for which FHN continues to receive payments including residential real estate loans where the borrower has been discharged of personal obligation through bankruptcy.
Past due loans are loans contractually past due as to interest or principal payments, but which have not yet been put on nonaccrual status.
The following table reflects accruing and non-accruing loans and leases by class on March 31, 2026 and December 31, 2025.
ACCRUING & NON-ACCRUING LOANS AND LEASES
March 31, 2026
 AccruingNon-Accruing 
(Dollars in millions)Current30-89
Days
Past Due		90+
Days
Past Due		Total
Accruing		Current30-89
Days
Past Due		90+
Days
Past Due		Total
Non-
Accruing		Total
Loans and Leases
Commercial, financial, and industrial:
C&I (a) $31,577 $30 $1 $31,608 $91 $71 $56 $218 $31,826 
Loans to mortgage companies4,641 — — 4,641 — — — — 4,641 
Total commercial, financial, and industrial36,218 30 1 36,249 91 71 56 218 36,467 
Commercial real estate:
CRE (b)13,167 10 — 13,177 208 — 35 243 13,420 
Consumer real estate:
HELOC (c)2,112 12 1 2,125 20 6 12 38 2,163 
Real estate installment loans (d)11,624 35 — 11,659 40 22 44 106 11,765 
Total consumer real estate13,736 47 1 13,784 60 28 56 144 13,928 
Credit card and other:
Credit card234 3 1 238 — — — — 238 
Other321 2 — 323 1 — — 1 324 
Total credit card and other555 5 1 561 1 — — 1 562 
Total loans and leases$63,676 $92 $3 $63,771 $360 $99 $147 $606 $64,377 
December 31, 2025
 AccruingNon-Accruing 
(Dollars in millions)Current30-89
Days
Past Due		90+
Days
Past Due		Total
Accruing		Current30-89
Days
Past Due		90+
Days
Past Due		Total
Non-
Accruing		Total
Loans and Leases
Commercial, financial, and industrial:
C&I (a) $30,943 $34 $1 $30,978 $120 $35 $69 $224 $31,202 
Loans to mortgage companies4,703 — — 4,703 — — — — 4,703 
Total commercial, financial, and industrial35,646 34 1 35,681 120 35 69 224 35,905 
Commercial real estate:
CRE (b)13,321 3 — 13,324 218 11 10 239 13,563 
Consumer real estate:
HELOC (c)2,115 14 — 2,129 17 7 11 35 2,164 
Real estate installment loans (d)11,806 27 6 11,839 40 9 56 105 11,944 
Total consumer real estate13,921 41 6 13,968 57 16 67 140 14,108 
Credit card and other:
Credit card224 3 1 228 — — — — 228 
Other349 2 — 351 — — 1 1 352 
Total credit card and other573 5 1 579 — — 1 1 580 
Total loans and leases$63,461 $83 $8 $63,552 $395 $62 $147 $604 $64,156 
(a)    $196 million and $211 million of C&I loans are nonaccrual loans that have been specifically reviewed for impairment with no related allowance in 2026 and 2025, respectively.
(b)    $242 million and $238 million of CRE loans are nonaccrual loans that have been specifically reviewed for impairment with no related allowance in 2026 and 2025, respectively.
(c)    $4 million and $3 million of HELOC loans are nonaccrual loans that have been specifically reviewed for impairment with no related allowance in 2026 and 2025, respectively.
(d)    $8 million of real estate installment loans are nonaccrual loans that have been specifically reviewed for impairment with no related allowance in both 2026 and 2025.

Collateral-Dependent Loans
Collateral-dependent loans are defined as loans for which repayment is expected to be derived substantially through the operation or sale of the collateral and where the borrower is experiencing financial difficulty. At a minimum,
the estimated value of the collateral for each loan equals the current book value.
As of March 31, 2026 and December 31, 2025, FHN had commercial loans with amortized cost of approximately $383 million and $400 million, respectively, that were based on the value of underlying collateral. Collateral-
dependent C&I and CRE loans totaled $140 million and $243 million, respectively, at March 31, 2026. The collateral for these loans generally consists of business assets including land, buildings, equipment, and financial assets. During the three months ended March 31, 2026, FHN recognized charge-offs of $19 million on these loans related to reductions in estimated collateral values.
Consumer HELOC and real estate installment loans with amortized cost based on the value of underlying real estate collateral were approximately $5 million and $44 million, respectively, as of March 31, 2026 and $5 million and $46 million, respectively, as of December 31, 2025. Charge-offs relating to collateral-dependent consumer loans were insignificant for the three months ended March 31, 2026 and March 31, 2025.
Loan Modifications to Troubled Borrowers
As part of FHN’s ongoing risk management practices, FHN attempts to work with borrowers when necessary to extend or modify loan terms to better align with their current ability to repay. Modifications could include extension of the maturity date, reductions of the interest rate, reduction or forgiveness of accrued interest, or principal forgiveness. Combinations of these modifications may also be made for individual loans. Extensions and modifications to loans are made in accordance with internal policies and guidelines which conform to regulatory guidance. Principal reductions may be made in limited circumstances, typically for specific commercial loan workouts, and in the event of borrower bankruptcy. Each occurrence is unique to the borrower and is evaluated separately.
Troubled loans are considered those in which the borrower is experiencing financial difficulty. The assessment of whether a borrower is experiencing financial difficulty can be subjective in nature and management’s judgment may be required in making this determination. FHN may determine that a borrower is experiencing financial
difficulty if the borrower is currently in default on any of its debt, or if it is probable that a borrower may default in the foreseeable future absent a modification. Many aspects of a borrower’s financial situation are assessed when determining whether they are experiencing financial difficulty.
Troubled commercial loans are typically modified through forbearance agreements which could include reduced interest rates, reduced payments, term extension, or entering into short sale agreements. Principal reductions may occur in specific circumstances.
Modifications for troubled consumer loans are generally structured using parameters of U.S. government-sponsored programs. For HELOC and real estate installment loans, troubled loans are typically modified by an interest rate reduction and a possible maturity date extension to reach an affordable housing expense-to-income ratio. Despite the absence of a loan modification by FHN, the discharge of personal liability through bankruptcy proceedings is considered a court-imposed modification.
For the credit card portfolio, troubled loan modifications are typically effected through either a short-term credit card hardship program or a longer-term credit card workout program. In the credit card hardship program, borrowers may be granted rate and payment reductions for six months to one year. In the credit card workout program, borrowers are granted a rate reduction to 0% and a term extension for up to five years.
Modifications to Borrowers Experiencing Financial Difficulty
The following table presents the amortized cost basis at the end of the reporting period of loans modified to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of modification made as of March 31, 2026 and March 31, 2025.
LOAN MODIFICATIONS TO BORROWERS EXPERIENCING FINANCIAL DIFFICULTY
Amortized Cost
(Dollars in millions)Interest Rate ReductionTerm ExtensionPrincipal Forgiven/Payment DeferredCombination (a)Total% of Total Class
As of March 31, 2026
C&I$— $40 $— $— $40 0.11 %
CRE— 4 — — 4 0.03 
Consumer real estate— — 1 — 1 0.01 
Total$— $44 $1 $— $45 0.07 %
As of March 31, 2025
C&I$— $78 $— $— $78 0.23 %
CRE— 29 — — 29 0.21 
Total$— $107 $— $— $107 0.17 %
(a) Combination modifications consist primarily of loans modified with both an interest rate reduction and a term extension.

The following table describes the financial effect of the loan modifications made to borrowers experiencing financial difficulty.

FINANCIAL EFFECT OF LOAN MODIFICATIONS TO BORROWERS EXPERIENCING FINANCIAL DIFFICULTY (a)
Combination
(Dollars in millions)Weighted-average Interest Rate ReductionWeighted-average Term Extension (in years)Amount of Principal Forgiven/Payment DeferredWeighted-average Interest Rate ReductionWeighted-average Term Extension (in years)
As of March 31, 2026
C&I— %1.27$— — %0
CRE— 1.52— — 0
Consumer real estate— 0.00— — 0
As of March 31, 2025
C&I— %1.00$— — %0
CRE— 1.60— — 0
(a) Certain disclosures related to financial effects of modifications do not include those deemed to be immaterial.

Loan modifications to borrowers experiencing financial difficulty that had a payment default during the period and were modified in the 12 months before default totaled $2 million and $1 million for the three months ended March 31, 2026 and March 31, 2025, respectively. FHN
closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts.


The following table depicts the performance of loans that have been modified in the last 12 months.
PERFORMANCE OF LOANS THAT HAVE BEEN MODIFIED IN THE LAST 12 MONTHS
March 31, 2026
(Dollars in millions)Current30-89 Days Past Due90+ Days Past DueNon-AccruingTotal
C&I$107 $1 $— $32 $140 
CRE125 — — 125 250 
Consumer Real Estate1 — — 3 4 
Total$233 $1 $— $160 $394 
March 31, 2025
(Dollars in millions)Current30-89 Days Past Due90+ Days Past DueNon-AccruingTotal
C&I$133 $— $— $16 $149 
CRE178 — — 69 247 
Consumer Real Estate2 — — 1 3 
Total$313 $— $— $86 $399