v3.26.1
Fair Value of Assets and Liabilities (Tables)
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of March 31, 2026 and December 31, 2025.
ASSETS & LIABILITIES MEASURED AT FAIR VALUE ON A RECURRING BASIS
 March 31, 2026
(Dollars in millions)Level 1Level 2Level 3Total
Trading securities:
U.S. treasuries$— $7 $— $7 
Government agency issued MBS— 296 — 296 
Government agency issued CMO— 406 — 406 
Other U.S. government agencies— 317 — 317 
States and municipalities— 35 — 35 
Corporate and other debt— 710 — 710 
Equity, mutual funds, and other— 6 — 6 
SBA interest-only strips— — 35 35 
Total trading securities— 1,777 35 1,812 
Loans held for sale (elected fair value)— 153 14 167 
Securities available for sale:
Government agency issued MBS— 3,525 — 3,525 
Government agency issued CMO— 2,792 — 2,792 
Other U.S. government agencies— 1,500 — 1,500 
States and municipalities— 329 — 329 
Total securities available for sale— 8,146 — 8,146 
Other assets:
Deferred compensation mutual funds106 — — 106 
Equity, mutual funds, and other17 — — 17 
Derivatives, forwards and futures26 — — 26 
Derivatives, interest rate contracts— 310 — 310 
Total other assets149 310 — 459 
Total assets$149 $10,386 $49 $10,584 
Trading liabilities:
U.S. treasuries$— $580 $— $580 
Corporate and other debt— 85 — 85 
Equity, mutual funds, and other— 1 — 1 
Total trading liabilities— 666 — 666 
Other liabilities:
Derivatives, forwards and futures19 — — 19 
Derivatives, interest rate contracts— 377 — 377 
Derivatives, other— — 18 18 
Total other liabilities19 377 18 414 
Total liabilities$19 $1,043 $18 $1,080 
 December 31, 2025
(Dollars in millions)Level 1Level 2Level 3Total
Trading securities:
U.S. treasuries$— $8 $— $8 
Government agency issued MBS— 352 — 352 
Government agency issued CMO— 326 — 326 
Other U.S. government agencies— 157 — 157 
States and municipalities— 86 — 86 
Corporate and other debt— 930 — 930 
SBA interest-only strips— — 45 45 
Total trading securities— 1,859 45 1,904 
Loans held for sale (elected fair value)— 137 14 151 
Securities available for sale:
Government agency issued MBS— 3,641 — 3,641 
Government agency issued CMO— 2,869 — 2,869 
Other U.S. government agencies— 1,317 — 1,317 
States and municipalities— 338 — 338 
Total securities available for sale— 8,165 — 8,165 
Other assets:
Deferred compensation mutual funds110 — — 110 
Equity, mutual funds, and other37 — — 37 
Derivatives, forwards and futures7 — — 7 
Derivatives, interest rate contracts— 320 — 320 
Total other assets154 320 — 474 
Total assets$154 $10,481 $59 $10,694 
Trading liabilities:
U.S. treasuries$— $492 $— $492 
Corporate and other debt— 115 — 115 
Total trading liabilities— 607 — 607 
Other liabilities:
Derivatives, forwards and futures9 — — 9 
Derivatives, interest rate contracts— 368 — 368 
Derivatives, other— — 25 25 
Total other liabilities9 368 25 402 
Total liabilities$9 $975 $25 $1,009 
Schedule of Changes in Level 3 Assets and Liabilities Measured at Fair Value
The changes in Level 3 assets and liabilities measured at fair value for the three months ended March 31, 2026 and 2025 on a recurring basis are summarized as follows.
CHANGES IN LEVEL 3 ASSETS & LIABILITIES MEASURED AT FAIR VALUE ON A RECURRING BASIS
 Three Months Ended March 31, 2026 
(Dollars in millions)
SBA interest-only strips
Loans held
for sale		Net 
derivative
liabilities
Balance on January 1, 2026$45 $14 $(25)
Total net gains (losses) included in net income(2)— — 
Settlements— — 7 
Net transfers into (out of) Level 3(8)(b)— — 
Balance on March 31, 2026$35 $14 $(18)
Net unrealized gains (losses) included in net income$(1)(c)$— (a)$— (d)
 Three Months Ended March 31, 2025 
(Dollars in millions)
SBA interest-only strips
Loans held
for sale		Net 
derivative
liabilities
Balance on January 1, 2025$23  $16 $(15)
Total net gains (losses) included in net income(2) — (5)
Sales(3)(4)— 
Settlements— — 2 
Net transfers into (out of) Level 34 (b)1 — 
Balance on March 31, 2025$22  $13 $(18)
Net unrealized gains (losses) included in net income$(1)(c)$— (a)$(5)(d)
(a)Primarily included in mortgage banking income on the Consolidated Statements of Income.
(b)Transfers into (out of) Level 3 SBA interest-only strips reflect transfers from (to) SBA loans held for sale, which are Level 2 assets measured on a nonrecurring basis. Refer to the nonrecurring measurement table included in the following section of this Note.
(c)Primarily included in fixed income on the Consolidated Statements of Income.
(d)Included in other expense on the Consolidated Statements of Income.
Schedule of Nonrecurring Fair Value Measurements For assets
measured at fair value on a nonrecurring basis which were still held on the Consolidated Balance Sheets at March 31, 2026 and December 31, 2025, respectively, the following tables provide the level of valuation assumptions used to determine each adjustment and the related carrying value.
LEVEL OF VALUATION ASSUMPTIONS FOR ASSETS MEASURED AT FAIR VALUE ON A NONRECURRING BASIS
 Carrying value at March 31, 2026
(Dollars in millions)Level 1Level 2Level 3Total
Loans held for sale—SBAs and USDA$— $373 $— $373 
Loans and leases (a)— — 363 363 
OREO (b)— — 2 2 
 Carrying value at December 31, 2025
(Dollars in millions)Level 1Level 2Level 3Total
Loans held for sale—SBAs and USDA$— $233 $— $233 
Loans and leases (a)— — 370 370 
OREO (b)— — 3 3 
(a)Represents carrying value of loans for which adjustments are required to be based on the appraised value of the collateral less estimated costs to sell. Write-downs on these loans are recognized as part of provision for credit losses.
(b)Represents the fair value and related losses of foreclosed properties that were measured subsequent to their initial classification as OREO. Balance excludes OREO related to government-insured mortgages.
Schedule of Gains/(losses) on Nonrecurring Fair Value Measurements
For assets measured on a nonrecurring basis which were still held on the Consolidated Balance Sheets at period end, the following table provides information about the fair value adjustments recorded during the three months ended March 31, 2026 and 2025.
FAIR VALUE ADJUSTMENTS ON ASSETS MEASURED ON A NONRECURRING BASIS
Net gains (losses)
Three Months Ended March 31,
(Dollars in millions)20262025
Loans held for sale—SBAs and USDA$(1)$(1)
Loans and leases (a)(19)(23)
$(20)$(24)
(a)Write-downs on these loans are recognized as part of provision for credit losses.
Schedule of Unobservable Inputs Utilized in Determining the Fair Value of Level 3 Recurring and Non-Recurring Measurements
The following table provides information regarding the unobservable inputs utilized in determining the fair value of Level 3 recurring and nonrecurring measurements as of March 31, 2026 and December 31, 2025.
UNOBSERVABLE INPUTS USED IN LEVEL 3 FAIR VALUE MEASUREMENTS
(Dollars in millions)Values Utilized
Level 3 ClassFair Value at March 31, 2026Valuation TechniquesUnobservable InputRangeWeighted Average (c)
Trading securities - SBA interest-only strips$35 Discounted cash flowConstant prepayment rate
16% - 24%
16%
Bond equivalent yield
3% - 12%
12%
Loans held for sale - residential real estate$14 Discounted cash flowPrepayment speeds - First mortgage
2% - 7%
3%
Foreclosure losses
62% - 65%
64%
Loss severity trends - First mortgage
0.0% - 1.5% of UPB
0.5%
Derivative liabilities, other$18 Discounted cash flowVisa covered litigation resolution amount
$3.6 billion - $4.2 billion
$4.0 billion
Probability of resolution scenarios
20% - 30%
25%
   Time until resolution
12 - 42 months
32 months
Loans and leases (a)$363 Appraisals from comparable propertiesMarketability adjustments for specific properties
0% - 25% of appraisal
NM
Other collateral valuationsBorrowing base certificates liquidation adjustment
25% - 50% of gross value
NM
   Financial statements liquidation adjustment
50% - 100% of reported value
NM
Auction appraisals marketability adjustment
0% - 10% of reported value
NM
OREO (b)$2 Appraisals from comparable propertiesAdjustment for value changes since appraisal
0% - 10% of appraisal
NM
 NM - Not meaningful
(a)Represents carrying value of loans for which adjustments are required to be based on the appraised value of the collateral less estimated costs to sell. Write-downs on these loans are recognized as part of provision for credit losses.
(b)Represents the fair value of foreclosed properties that were measured subsequent to their initial classification as OREO. Balance excludes OREO related to government-insured mortgages.
(c)Weighted averages are determined by the relative fair value of the instruments or the relative contribution to an instrument's fair value.
(Dollars in millions)Values Utilized
Level 3 ClassFair Value at December 31, 2025Valuation TechniquesUnobservable InputRangeWeighted Average (c)
Trading securities - SBA interest-only strips$45 Discounted cash flowConstant prepayment rate
16% - 30%
17%
Bond equivalent yield
4% - 14%
14%
Loans held for sale - residential real estate$14 Discounted cash flowPrepayment speeds - First mortgage
2% - 7%
3%
Foreclosure losses
64% - 65%
64%
Loss severity trends - First mortgage
0.0% - 1.3% of UPB
0.5%
Derivative liabilities, other$25 Discounted cash flowVisa covered litigation resolution amount
$3.7 billion - $4.5 billion
$4.2 billion
Probability of resolution scenarios
10% - 25%
20%
Time until resolution
18 - 48 months
35 months
Loans and leases (a)$370 Appraisals from comparable propertiesMarketability adjustments for specific properties
0% - 25% of appraisal
NM
Other collateral valuationsBorrowing base certificates liquidation adjustment
25% - 50% of gross value
NM
Financial statements liquidation adjustment
50% - 100% of reported value
NM
Auction appraisals marketability adjustment
0% - 10% of reported value
NM
OREO (b)$3 Appraisals from comparable propertiesAdjustment for value changes since appraisal
0% - 10% of appraisal
NM
NM - Not meaningful
(a)Represents carrying value of loans for which adjustments are required to be based on the appraised value of the collateral less estimated costs to sell. Write-downs on these loans are recognized as part of provision for credit losses.
(b)Represents the fair value of foreclosed properties that were measured subsequent to their initial classification as OREO. Balance excludes OREO related to government-insured mortgages.
(c)Weighted averages are determined by the relative fair value of the instruments or the relative contribution to an instrument's fair value.
Schedule of Differences between the Fair Value Carrying Amount of Mortgages Held-for-sale and Aggregate Unpaid Principal Amount
The following table reflects the differences between the fair value carrying amount of residential real estate loans held for sale measured at fair value in accordance with management’s election and the aggregate unpaid principal amount FHN is contractually entitled to receive at maturity.
DIFFERENCES BETWEEN FAIR VALUE CARRYING AMOUNTS AND CONTRACTUAL AMOUNTS OF RESIDENTIAL REAL ESTATE LOANS REPORTED AT FAIR VALUE
 March 31, 2026
(Dollars in millions)Fair value
carrying
amount		Aggregate
unpaid
principal		Fair value carrying amount
less aggregate unpaid
principal
Residential real estate loans held for sale reported at fair value:
Total loans$167 $170 $(3)
Nonaccrual loans7 10 (3)
 December 31, 2025
(Dollars in millions)Fair value
carrying
amount		Aggregate
unpaid
principal		Fair value carrying amount
less aggregate unpaid
principal
Residential real estate loans held for sale reported at fair value:
Total loans$151 $154 $(3)
Nonaccrual loans9 12 (3)
Schedule of Changes In Fair Value of Assets and Liabilities which Fair Value Option Included in Current Period Earnings The following table presents the amounts recognized for the three months ended March 31, 2026 and 2025.
CHANGES IN FAIR VALUE RECOGNIZED IN NET INCOME
 Three Months Ended
March 31,
(Dollars in millions)20262025
Changes in fair value included in net income:
Mortgage banking noninterest income
Loans held for sale$(2)$2 
Schedule of Book Value and Estimated Fair Value of Financial Instruments The following table summarizes the book value and estimated fair value of financial instruments recorded in the Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025
BOOK VALUE AND ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS
March 31, 2026
 Book
Value		Fair Value
(Dollars in millions)Level 1Level 2Level 3Total
Assets:
Loans and leases, net of allowance for loan and lease losses
Commercial:
Commercial, financial, and industrial
$36,114 $— $— $35,861 $35,861 
Commercial real estate13,264 — — 13,211 13,211 
Consumer:
Consumer real estate 13,727 — — 13,518 13,518 
Credit card and other542 — — 543 543 
Total loans and leases, net of allowance for loan and lease losses63,647 — — 63,133 63,133 
Short-term financial assets:
Interest-bearing deposits with banks1,116 1,116 — — 1,116 
Federal funds sold8 — 8 — 8 
Securities purchased under agreements to resell746 — 746 — 746 
Total short-term financial assets1,870 1,116 754 — 1,870 
Trading securities (a)1,812 — 1,777 35 1,812 
Loans held for sale:
Mortgage loans (elected fair value)167 — 153 14 167 
USDA & SBA loans - LOCOM373 — 374 — 374 
Mortgage loans - LOCOM22 — — 22 22 
Total loans held for sale562 — 527 36 563 
Securities available for sale (a)8,146 — 8,146 — 8,146 
Securities held to maturity1,204 — 1,056 — 1,056 
Derivative assets (a)336 26 310 — 336 
Other assets:
Tax credit investments803 — — 739 739 
Deferred compensation mutual funds106 106 — — 106 
Equity, mutual funds, and other (b)330 17 — 313 330 
Total other assets1,239 123 — 1,052 1,175 
Total assets$78,816 $1,265 $12,570 $64,256 $78,091 
Liabilities:
Defined maturity deposits$7,125 $— $7,101 $— $7,101 
Trading liabilities (a)666 — 666 — 666 
Short-term financial liabilities:
Federal funds purchased793 — 793 — 793 
Securities sold under agreements to repurchase1,400 — 1,400 — 1,400 
Other short-term borrowings1,975 — 1,975 — 1,975 
Total short-term financial liabilities4,168 — 4,168 — 4,168 
Term borrowings:
Real estate investment trust-preferred47 — — 47 47 
Notes payable—New Market Tax Credit investments
74 — — 72 72 
Secured borrowings9 — — 9 9 
Junior subordinated debentures153 — — 150 150 
Other long-term borrowings1,035 — 1,040 — 1,040 
Total term borrowings1,318 — 1,040 278 1,318 
Derivative liabilities (a)414 19 377 18 414 
Total liabilities$13,691 $19 $13,352 $296 $13,667 
(a)Classes are detailed in the recurring measurement table.
(b)Level 1 primarily consists of mutual funds with readily determinable fair values. Level 3 includes restricted investments in FHLB-Cincinnati stock of $110 million and FRB stock of $203 million.
 December 31, 2025
 Book
Value		Fair Value
(Dollars in millions)Level 1Level 2Level 3Total
Assets:
Loans and leases, net of allowance for loan and lease losses
Commercial:
Commercial, financial, and industrial
$35,570 $— $— $35,401 $35,401 
Commercial real estate13,386 — — 13,289 13,289 
Consumer:
Consumer real estate 13,902 — — 13,707 13,707 
Credit card and other560 — — 558 558 
Total loans and leases, net of allowance for loan and lease losses63,418 — — 62,955 62,955 
Short-term financial assets:
Interest-bearing deposits with banks1,125 1,125 — — 1,125 
Federal funds sold21 — 21 — 21 
Securities purchased under agreements to resell613 — 613 — 613 
Total short-term financial assets1,759 1,125 634 — 1,759 
Trading securities (a)1,904 — 1,859 45 1,904 
Loans held for sale:
Mortgage loans (elected fair value)151 — 137 14 151 
USDA & SBA loans - LOCOM233 — 233 — 233 
Mortgage loans - LOCOM22 — — 22 22 
Total loans held for sale406 — 370 36 406 
Securities available for sale (a) 8,165 — 8,165 — 8,165 
Securities held to maturity1,216 — 1,073 — 1,073 
Derivative assets (a)327 7 320 — 327 
Other assets:
Tax credit investments824 — — 758 758 
Deferred compensation mutual funds110 110 — — 110 
Equity, mutual funds, and other (b)281 37 — 244 281 
Total other assets1,215 147 — 1,002 1,149 
Total assets$78,410 $1,279 $12,421 $64,038 $77,738 
Liabilities:
Defined maturity deposits$6,485 $— $6,466 $— $6,466 
Trading liabilities (a)607 — 607 — 607 
Short-term financial liabilities:
Federal funds purchased1,039 — 1,039 — 1,039 
Securities sold under agreements to repurchase1,973 — 1,973 — 1,973 
Other short-term borrowings242 — 242 — 242 
Total short-term financial liabilities3,254 — 3,254 — 3,254 
Term borrowings:
Real estate investment trust-preferred47 — — 47 47 
Notes payable—New Market Tax Credit investments
74 — — 73 73 
Secured borrowings12 — — 12 12 
Junior subordinated debentures153 — — 150 150 
Other long-term borrowings1,035 — 1,058 — 1,058 
Total term borrowings1,321 — 1,058 282 1,340 
Derivative liabilities (a)402 9 368 25 402 
Total liabilities$12,069 $9 $11,753 $307 $12,069 
(a)Classes are detailed in the recurring measurement table.
(b)Level 1 primarily consists of mutual funds with readily determinable fair values. Level 3 includes restricted investments in FHLB-Cincinnati stock of $41 million and FRB stock of $203 million.
The following table presents the contractual amount and fair value of unfunded loan commitments and standby and other commitments as of March 31, 2026 and December 31, 2025.
UNFUNDED COMMITMENTS
 Contractual AmountFair Value
(Dollars in millions)March 31, 2026December 31, 2025March 31, 2026December 31, 2025
Unfunded Commitments:
Loan commitments$22,063 $21,676 $1 $1 
Standby and other commitments783 804 9 10