Variable Interest Entities (Tables)

3 Months Ended

Mar. 31, 2026

Variable Interest Entities [Abstract]

The following table summarizes the carrying value of assets and liabilities associated with rabbi trusts used for deferred compensation plans which are consolidated by FHN as of March 31, 2026 and December 31, 2025.


CONSOLIDATED VIEs
(Dollars in millions)	March 31, 2026		December 31, 2025
Assets:




Other assets	$	196	$	202


Liabilities:

Other liabilities	$	178	$	176

Schedule of the Impact of Qualifying LIHTC Investments

The following table summarizes the impact to income tax expense on the Consolidated Statements of Income for the three months ended March 31, 2026 and 2025 for investments accounted for under the proportional amortization method. The impact of these investments is included in other operating activities, net in the Consolidated Statements of Cash Flows.


TAX CREDIT IMPACTS ON TAX EXPENSE
	Three Months Ended March 31,
(Dollars in millions)	2026		2025
Income tax expense (benefit):
Amortization of qualifying investments	$	20	$	17
Tax credits	(23)		(20)
Other tax benefits related to qualifying investments	(3)		(2)

Schedule of VIEs not Consolidated by FHN

The following tables summarize FHN’s nonconsolidated VIEs as of March 31, 2026 and December 31, 2025.


NONCONSOLIDATED VIEs AT MARCH 31, 2026
(Dollars in millions)	Maximum Loss Exposure		Liability Recognized		Classification
Type:
Low income housing partnerships	$	713	$	230	(a)
Other tax credit investments (b)	91		74		Other assets
Small issuer trust preferred holdings (c)	166		—		Loans and leases
On-balance sheet trust preferred securitization	25		89		(d)

Holdings of agency mortgage-backed securities (c)	8,224		—		(e)
Commercial loan modifications to borrowers experiencing financial difficulty (f)	391		—		Loans and leases

Proprietary trust preferred issuances (g)	—		167		Term borrowings

(a)Maximum loss exposure represents $483 million of current investments and $230 million of accrued contractual funding commitments. Current investments are recognized in other assets. Accrued funding commitments represent unconditional contractual obligations for future funding events and are recognized in other liabilities. FHN currently expects to be required to fund these accrued commitments by the end of 2026.

(b)Maximum loss exposure represents the value of current investments.

(c)Maximum loss exposure represents the value of current investments. A liability is not recognized as FHN is solely a holder of the trusts’ securities.

(d)Includes $113 million classified as loans and leases and $1 million classified as trading securities, which are offset by $89 million classified as term borrowings.

(e)Includes $702 million classified as trading securities, $1.2 billion classified as securities held to maturity, and $6.3 billion classified as securities available for sale.

(f)Maximum loss exposure represents $390 million of current receivables with $1 million in additional contractual funding commitments on loans related to commercial loan modifications to borrowers experiencing financial difficulty.

(g)No exposure to loss due to nature of FHN's involvement.


NONCONSOLIDATED VIEs AT DECEMBER 31, 2025
(Dollars in millions)	Maximum Loss Exposure		Liability Recognized		Classification
Type:
Low income housing partnerships	$	733	$	260	(a)
Other tax credit investments (b)	92		74		Other assets
Small issuer trust preferred holdings (c)	166		—		Loans and leases
On-balance sheet trust preferred securitization	25		89		(d)

Holdings of agency mortgage-backed securities (c)	8,405		—		(e)
Commercial loan modifications to borrowers experiencing financial difficulty (f)	478		—		Loans and leases

Proprietary trust preferred issuances (g)	—		167		Term borrowings

(a)Maximum loss exposure represents $473 million of current investments and $260 million of accrued contractual funding commitments. Current investments are recognized in other assets. Accrued funding commitments represent unconditional contractual obligations for future funding events and are recognized in other liabilities. FHN currently expects to be required to fund these accrued commitments by the end of 2026.

(b)Maximum loss exposure represents current investments.

(c)Maximum loss exposure represents the value of current investments. A liability is not recognized as FHN is solely a holder of the trusts’ securities.

(d)Includes $113 million classified as loans and leases and $1 million classified as trading securities, which are offset by $89 million classified as term borrowings.

(e)Includes $678 million classified as trading securities, $1.2 billion classified as securities held to maturity, and $6.5 billion classified as securities available for sale.

(f)Maximum loss exposure represents $477 million of current receivables with $1 million in additional contractual funding commitments on loans related to commercial loan modifications to borrowers experiencing financial difficulty.

(g)No exposure to loss due to nature of FHN's involvement.