v3.26.1
Business Segment Information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Business Segment Information Business Segment Information
FHN's operating segments are composed of the following:
•Commercial, Consumer & Wealth segment offers financial products and services, including traditional lending and deposit taking, to commercial and consumer clients primarily in the southern U.S. and other selected markets. Commercial, Consumer & Wealth also consists of lines of business that deliver product offerings and services with niche industry knowledge including asset-based lending, commercial real estate, equipment finance/leasing, energy, international banking, healthcare, and transportation and logistics. Additionally, Commercial, Consumer & Wealth provides investment, wealth management, financial planning, trust and asset management services for consumer clients as well as delivering treasury management solutions, loan syndications, and corporate banking services.
•Wholesale segment consists of lines of business that deliver product offerings and services with differentiated industry knowledge. Wholesale’s lines of business include mortgage warehouse lending, franchise finance, correspondent banking, and mortgage. Additionally, Wholesale has a line of business focused on fixed income securities sales, trading, underwriting, and strategies for institutional clients in the U.S. and abroad, as well as loan sales, portfolio advisory services, and derivative sales.
•Corporate segment consists primarily of corporate support functions including risk management, audit, accounting, finance, executive office, and corporate communications. Shared support services such as human resources, marketing, properties, technology, credit risk and bank operations are allocated to the activities of Commercial, Consumer & Wealth, Wholesale, and Corporate. Additionally, the Corporate segment includes centralized management of capital and funding to support the business activities of the company including management of balance sheet funding, liquidity, and capital management and allocation. The Corporate segment also includes the revenue and expense associated with run-off businesses such as pre-2009 mortgage banking elements, run-off consumer and trust preferred loan portfolios, and other exited businesses.
Basis of Presentation
Results of individual segments are presented based on FHN's internal management reporting practices. There is no comprehensive, authoritative body of guidance for management accounting equivalent to GAAP; therefore, the financial results of FHN's individual segments are not necessarily comparable with similar information for any other company.
Periodically, FHN adapts its segments to reflect managerial or strategic changes. FHN may also modify its methodology of allocating expenses and equity among segments, which could change historical segment results. Business segment revenue, expense, asset, and equity levels reflect those which are specifically identifiable, or which are allocated based on an internal allocation method. Because the allocations are based on internally developed assignments and allocations, to an extent they are subjective. Generally, all assignments and allocations have been consistently applied for all periods presented.
Funds Transfer Pricing
Net interest income in segment results reflects FHN's internal funds transfer pricing methodology which is designed to consider interest rate and liquidity risks. Under this methodology, assets receive a funding charge while liabilities and capital receive a funding credit based on market interest rates, product characteristics, and other factors.
The transfer pricing framework considers the application of funding curves and methodologies consistently across the balance sheet. A residual gain or loss from funds transfer pricing operations is retained within Corporate.
Segment Allocations
Financial results are presented, to the extent practicable, as if each segment operated on a stand-alone basis and include expense allocations for corporate overhead services used by the segments.
FHN has allocated the ALLL and the reserve for unfunded lending commitments based on the loan exposures within each segment’s portfolio.
The Company's Chief Operating Decision Maker ("CODM") is comprised of the chief executive officer and segment leadership.
For both the Commercial, Consumer & Wealth and Wholesale segments, the CODM uses both Pre-Provision Net Revenue ("PPNR") and Pre-Tax Net Income ("PTNI") to evaluate performance and allocate resources. The measure of PPNR focuses on the Company's primary businesses principally by excluding the volatility associated with credit risk estimates due to the CECL life-of-loan estimation requirement, which is highly sensitive to changes in economic forecasts. PPNR also represents a metric utilized by regulatory agencies in stress testing assessments. PTNI is used to incorporate credit risk estimates for a holistic view of pre-tax results in the evaluation of segment performance.
For the Corporate segment, the CODM uses after-tax income to evaluate performance and allocate resources. After-tax income is most relevant for the Corporate segment because of minimal credit risk and inclusion of
the impacts from all consolidated tax matters, which are not allocated, in addition to all other methodologies affecting pre-tax income among reported segments (e.g., FTP and cost allocations).
The following table presents financial information for each reportable business segment for the three and six months ended June 30, 2026 and 2025.
SEGMENT FINANCIAL INFORMATION
Three Months Ended June 30, 2026
(Dollars in millions)Commercial, Consumer & WealthWholesaleCorporateConsolidated
Interest income$807 $148 $75 $1,030 
Interest expense230 23 101 354 
Funds transfer pricing77 (58)(19)— 
Net interest income (expense)654 67 (45)676 
Noninterest income123 58 30 211 
Total revenues777 125 (15)887 
Noninterest expense (a)376 79 77 532 
Pre-provision net revenue (b)401 46 (92)355 
Provision (benefit) for credit losses1 23 (9)15 
Income (loss) before income taxes400 23 (83)340 
Income tax expense (benefit)96 5 (35)66 
Net income (loss)$304 $18 $(48)$274 
Average assets$59,991 $10,544 $13,562 $84,097 
Depreciation and amortization10 1 9 20 
Expenditures for long-lived assets7 — 12 19 
Three Months Ended June 30, 2025
(Dollars in millions)Commercial, Consumer & WealthWholesaleCorporateConsolidated
Interest income$826 $140 $78 $1,044 
Interest expense295 26 82 403 
Funds transfer pricing112 (56)(56)— 
Net interest income (expense)643 58 (60)641 
Noninterest income113 53 23 189 
Total revenues756 111 (37)830 
Noninterest expense (a)355 75 61 491 
Pre-provision net revenue (b)401 36 (98)339 
Provision (benefit) for credit losses13 6 11 30 
Income (loss) before income taxes388 30 (109)309 
Income tax expense (benefit)92 7 (35)64 
Net income (loss)$296 $23 $(74)$245 
Average assets$58,737 $9,308 $13,913 $81,958 
Depreciation and amortization7 2 11 20 
Expenditures for long-lived assets5 — 2 7 
(a)2026 includes $5 million in derivative valuation adjustments related to prior Visa Class B share sales in the Corporate segment. 2025 includes an FDIC special assessment expense credit of $1 million and a $4 million expense credit related to an accrual release in deferred compensation in the Corporate segment.
(b)Pre-provision net revenue is a non-GAAP measure and is reconciled to income (loss) before income taxes (GAAP) in this table.
Six Months Ended June 30, 2026
(Dollars in millions)Commercial, Consumer & WealthWholesaleCorporateConsolidated
Interest income$1,594 $285 $156 $2,035 
Interest expense461 48 182 691 
Funds transfer pricing171 (108)(63)— 
Net interest income (expense)1,304 129 (89)1,344 
Noninterest income242 122 41 405 
Total revenues1,546 251 (48)1,749 
Noninterest expense (a)744 162 130 1,036 
Pre-provision net revenue (b)802 89 (178)713 
Provision (benefit) for credit losses9 32 (11)30 
Income (loss) before income taxes793 57 (167)683 
Income tax expense (benefit)190 13 (61)142 
Net income (loss)$603 $44 $(106)$541 
Average assets$59,496 $10,304 $13,774 $83,574 
Depreciation and amortization22 2 17 41 
Expenditures for long-lived assets14 — 14 28 
Six Months Ended June 30, 2025
(Dollars in millions)Commercial, Consumer & WealthWholesaleCorporateConsolidated
Interest income$1,639 $264 $155 $2,058 
Interest expense585 55 146 786 
Funds transfer pricing222 (102)(120)— 
Net interest income (expense)1,276 107 (111)1,272 
Noninterest income223 113 34 370 
Total revenues1,499 220 (77)1,642 
Noninterest expense (a)699 150 129 978 
Pre-provision net revenue (b)800 70 (206)664 
Provision (benefit) for credit losses51 9 10 70 
Income (loss) before income taxes749 61 (216)594 
Income tax expense (benefit)178 15 (66)127 
Net income (loss)$571 $46 $(150)$467 
Average assets$58,727 $8,903 $13,834 $81,464 
Depreciation and amortization17 4 20 41 
Expenditures for long-lived assets10 1 5 16 
(a)2026 includes $5 million in derivative valuation adjustments related to prior Visa Class B share sales in the Corporate segment. 2025 includes a $4 million expense credit related to an accrual release in deferred compensation, and $5 million in derivative valuation adjustments related to prior Visa Class B share sales in the Corporate segment.
(b)Pre-provision net revenue is a non-GAAP measure and is reconciled to income (loss) before income taxes (GAAP) in this table.
The following tables present a disaggregation of FHN’s noninterest income by major product line and reportable segment for the three and six months ended June 30, 2026 and 2025.

NONINTEREST INCOME DETAIL BY SEGMENT
Three Months Ended June 30, 2026
(Dollars in millions)Commercial, Consumer & WealthWholesaleCorporateConsolidated
Noninterest income:
Fixed income (a)$— $46 $— $46 
Deposit transactions and cash management40 1 2 43 
Brokerage, management fees and commissions31 — — 31 
Card and digital banking fees16 — 2 18 
Other service charges and fees15 — — 15 
Deferred compensation income— — 15 15 
Trust services and investment management13 — 1 14 
Mortgage banking income— 9 — 9 
Other income (b)8 2 10 20 
Total noninterest income$123 $58 $30 $211 
Three Months Ended June 30, 2025
(Dollars in millions)Commercial, Consumer & WealthWholesaleCorporateConsolidated
Noninterest income:
Fixed income (a)$— $42 $— $42 
Deposit transactions and cash management39 — 2 41 
Brokerage, management fees and commissions26 — — 26 
Card and digital banking fees16 — 3 19 
Other service charges and fees13 1 — 14 
Deferred compensation income — — 8 8 
Trust services and investment management12 — 1 13 
Mortgage banking income— 10 — 10 
Other income (b)7 — 9 16 
Total noninterest income$113 $53 $23 $189 
(a)2026 and 2025 include $11 million and $9 million, respectively, of underwriting, portfolio advisory, and other noninterest income in scope of ASC 606, "Revenue from Contracts with Customers."
(b)Includes letter of credit fees and insurance commissions in scope of ASC 606.
Six Months Ended June 30, 2026
(Dollars in millions)Commercial, Consumer & WealthWholesaleCorporateConsolidated
Noninterest income:
Fixed income (a)$— $99 $— $99 
Deposit transactions and cash management80 2 4 86 
Brokerage, management fees and commissions60 — — 60 
Card and digital banking fees31 — 5 36 
Other service charges and fees30 1 — 31 
Deferred compensation income— — 12 12 
Trust services and investment management26 — 1 27 
Mortgage banking income— 18 — 18 
Other income (b)15 2 19 36 
Total noninterest income$242 $122 $41 $405 
Six Months Ended June 30, 2025
(Dollars in millions)Commercial, Consumer & WealthWholesaleCorporateConsolidated
Noninterest income:
Fixed income (a)$— $91 $— $91 
Deposit transactions and cash management76 1 4 81 
Brokerage, management fees and commissions52 — — 52 
Card and digital banking fees32 — 5 37 
Other service charges and fees25 1 — 26 
Deferred compensation income— — 5 5 
Trust services and investment management24 — 1 25 
Mortgage banking income— 18 — 18 
Other income (b)14 2 19 35 
Total noninterest income$223 $113 $34 $370 
(a)2026 and 2025 include $22 million and $18 million, respectively, of underwriting, portfolio advisory, and other noninterest income in scope of ASC 606, "Revenue from Contracts with Customers."
(b)Includes letter of credit fees and insurance commissions in scope of ASC 606.
The following tables present a disaggregation of FHN's noninterest expense by reportable segment for the three and six months ended June 30, 2026 and 2025.

NONINTEREST EXPENSE DETAIL BY SEGMENT
Three Months Ended June 30, 2026
(Dollars in millions)Commercial, Consumer & WealthWholesaleCorporateConsolidated
Noninterest expense:
Personnel expense$142 $52 $110 $304 
Computer software9 2 29 40 
Net occupancy expense19 2 15 36 
Operations services4 6 16 26 
Legal and professional fees3 1 14 18 
Advertising and public relations— — 17 17 
Deposit insurance expense— — 12 12 
Equipment expense3 — 8 11 
Amortization of intangible assets8 — — 8 
Other expense16 9 35 60 
Cost allocations172 7 (179)— 
Total noninterest expense$376 $79 $77 $532 
Three Months Ended June 30, 2025
(Dollars in millions)Commercial, Consumer & WealthWholesaleCorporateConsolidated
Noninterest expense:
Personnel expense$133 $52 $97 $282 
Computer software8 2 24 34 
Net occupancy expense20 2 12 34 
Operations services4 6 13 23 
Legal and professional fees3 1 13 17 
Advertising and public relations2 — 12 14 
Deposit insurance expense— — 12 12 
Equipment expense3 — 8 11 
Amortization of intangible assets9 — 1 10 
Other expense18 7 29 54 
Cost allocations155 5 (160)— 
Total noninterest expense$355 $75 $61 $491 
Six Months Ended June 30, 2026
(Dollars in millions)Commercial, Consumer & WealthWholesaleCorporateConsolidated
Noninterest expense:
Personnel expense$284 $108 $201 $593 
Computer software17 4 56 77 
Net occupancy expense38 4 29 71 
Operations services8 12 32 52 
Legal and professional fees7 2 25 34 
Advertising and public relations1 — 26 27 
Deposit insurance expense— — 25 25 
Equipment expense6 1 15 22 
Amortization of intangible assets16 — — 16 
Other expense31 16 72 119 
Cost allocations336 15 (351)— 
Total noninterest expense$744 $162 $130 $1,036 

Six Months Ended June 30, 2025
(Dollars in millions)Commercial, Consumer & WealthWholesaleCorporateConsolidated
Noninterest expense:
Personnel expense$268 $103 $190 $561 
Computer software15 3 48 66 
Net occupancy expense41 4 24 69 
Operations services8 11 27 46 
Legal and professional fees6 2 23 31 
Advertising and public relations3 — 21 24 
Deposit insurance expense— — 25 25 
Equipment expense5 1 16 22 
Amortization of intangible assets17 1 2 20 
Other expense39 13 62 114 
Cost allocations297 12 (309)— 
Total noninterest expense$699 $150 $129 $978