v3.26.1
Fair Value of Assets and Liabilities (Tables)
 6 Months Ended
Jun. 30, 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 June 30, 2026 and December 31, 2025.
ASSETS & LIABILITIES MEASURED AT FAIR VALUE ON A RECURRING BASIS
June 30, 2026
(Dollars in millions)Level 1Level 2Level 3Total
Trading securities:
Government agency issued MBS$— $146 $— $146 
Government agency issued CMO— 230 — 230 
Other U.S. government agencies— 109 — 109 
States and municipalities— 74 — 74 
Corporate and other debt— 803 — 803 
Equity, mutual funds, and other— 21 — 21 
SBA interest-only strips— — 34 34 
Total trading securities— 1,383 34 1,417 
Loans held for sale (elected fair value)— 74 14 88 
Securities available for sale:
Government agency issued MBS— 3,390 — 3,390 
Government agency issued CMO— 2,706 — 2,706 
Other U.S. government agencies— 1,451 — 1,451 
States and municipalities— 326 — 326 
Total securities available for sale— 7,873 — 7,873 
Other assets:
Deferred compensation mutual funds110 — — 110 
Equity, mutual funds, and other3 — — 3 
Derivatives, forwards and futures7 — — 7 
Derivatives, interest rate contracts— 321 — 321 
Total other assets120 321 — 441 
Total assets$120 $9,651 $48 $9,819 
Trading liabilities:
U.S. treasuries$— $469 $— $469 
Government agency issued CMO— 2 — 2 
Corporate and other debt— 61 — 61 
Equity, mutual funds, and other— 1 — 1 
Total trading liabilities— 533 — 533 
Other liabilities:
Derivatives, forwards and futures7 — — 7 
Derivatives, interest rate contracts— 403 — 403 
Derivatives, other— — 22 22 
Total other liabilities7 403 22 432 
Total liabilities$7 $936 $22 $965 
December 31, 2025
(Dollars in millions)Level 1Level 2Level 3Total
Trading securities:
U.S. treasuries$— $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 on Recurring Basis
The changes in Level 3 assets and liabilities measured at fair value for the three months ended June 30, 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 June 30, 2026
(Dollars in millions)
SBA interest-only strips
Loans held
for sale		Net 
derivative
liabilities
Balance on April 1, 2026$35 $14 $(18)
Total net gains (losses) included in net income(3)— (5)
Settlements— — 1 
Net transfers into (out of) Level 32 (b)— — 
Balance on June 30, 2026$34 $14 $(22)
Net unrealized gains (losses) included in net income$(1)(c)$— (a)$(5)(d)
Three Months Ended June 30, 2025
(Dollars in millions)
SBA interest-only strips
Loans held
for sale		Net 
derivative
liabilities
Balance on April 1, 2025$22 $13 $(18)
Total net gains (losses) included in net income(2)— — 
Sales— (1)— 
Settlements— — 5 
Net transfers into (out of) Level 37 (b)— — 
Balance on June 30, 2025$27 $12 $(13)
Net unrealized gains (losses) included in net income$(1)(c)$— (a)$— (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.
The changes in Level 3 assets and liabilities measured at fair value for the six months ended June 30, 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
Six Months Ended June 30, 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(5)— (5)
Settlements— — 8 
Net transfers into (out of) Level 3(6)(b)— — 
Balance on June 30, 2026$34 $14 $(22)
Net unrealized gains (losses) included in net income$(1)(c)$— (a)$(5)(d)
Six Months Ended June 30, 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(4)— (5)
Sales(3)(5)— 
Settlements— — 7 
Net transfers into (out of) Level 311 (b)1 — 
Balance on June 30, 2025$27 $12 $(13)
Net unrealized gains (losses) included in net income$(2)(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 June 30, 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 June 30, 2026
(Dollars in millions)Level 1Level 2Level 3Total
Loans held for sale—SBAs and USDA$— $392 $— $392 
Loans and leases (a)— — 336 336 
OREO (b)— — 2 2 
Carrying value at December 31, 2025
(Dollars in millions)Level 1Level 2Level 3Total
Loans held for sale—SBAs and USDA$— $233 $— $233 
Loans and leases (a)— — 370 370 
OREO (b)— — 3 3 
(a)Represents carrying value of loans for which adjustments are required to be based on the appraised value of the collateral less estimated costs to sell.
(b)Represents the fair value and related losses of foreclosed properties that were measured subsequent to their initial classification as OREO. Balance excludes OREO related to government-insured mortgages.
Schedule of Gains/(losses) on Nonrecurring Fair Value Measurements
For assets measured on a nonrecurring basis which were still held on the Consolidated Balance Sheets at period end, the following table provides information about the fair value adjustments recorded during the three and six months ended June 30, 2026 and 2025.
FAIR VALUE ADJUSTMENTS ON ASSETS MEASURED ON A NONRECURRING BASIS
Net gains (losses)
Three Months Ended June 30,		Net gains (losses)
Six Months Ended June 30,
(Dollars in millions)2026202520262025
Loans held for sale—SBAs and USDA$(1)$— $(1)$— 
Loans and leases (a)(32)(16)(45)(33)
$(33)$(16)$(46)$(33)
(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 June 30, 2026 and December 31, 2025.
UNOBSERVABLE INPUTS USED IN LEVEL 3 FAIR VALUE MEASUREMENTS
(Dollars in millions)Values Utilized
Level 3 ClassFair Value at June 30, 2026Valuation TechniquesUnobservable InputRangeWeighted Average (c)
Trading securities - SBA interest-only strips$34 Discounted cash flowConstant prepayment rate
16% - 24%
16%
Bond equivalent yield
5% - 13%
13%
Loans held for sale - residential real estate$14 Discounted cash flowPrepayment speeds - First mortgage
2% - 7%
3%
Foreclosure losses
59% - 76%
66%
Loss severity trends - First mortgage
0.0% - 0.6% of UPB
0.2%
Derivative liabilities, other$22 Discounted cash flowVisa Covered Litigation resolution amount
$1.4 billion - $2.4 billion
$2.1 billion
Probability of resolution scenarios
5% - 25%
19%
Time until resolution
12 - 36 months
28 months
Loans and leases (a)$336 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
June 30, 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$88 $92 $(4)
Nonaccrual loans7 11 (4)
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 $(3)
Nonaccrual loans9 12 (3)
Schedule of Changes In Fair Value of Assets and Liabilities which Fair Value Option Included in Current Period Earnings The following table presents the amounts recognized for the three and six months ended June 30, 2026 and 2025.
CHANGES IN FAIR VALUE RECOGNIZED IN NET INCOME
Three Months Ended
June 30,		Six Months Ended
June 30,
(Dollars in millions)2026202520262025
Changes in fair value included in net income:
Mortgage banking noninterest income
Loans held for sale$— $— $(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 June 30, 2026 and December 31, 2025
BOOK VALUE AND ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS
June 30, 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
$36,946 $— $— $36,765 $36,765 
Commercial real estate13,445 — — 13,434 13,434 
Consumer:
Consumer real estate 13,679 — — 13,319 13,319 
Credit card and other551 — — 550 550 
Total loans and leases, net of allowance for loan and lease losses64,621 — — 64,068 64,068 
Short-term financial assets:
Interest-bearing deposits with banks1,158 1,158 — — 1,158 
Federal funds sold85 — 85 — 85 
Securities purchased under agreements to resell509 — 509 — 509 
Total short-term financial assets1,752 1,158 594 — 1,752 
Trading securities (a)1,417 — 1,383 34 1,417 
Loans held for sale:
Mortgage loans (elected fair value)88 — 74 14 88 
USDA & SBA loans - LOCOM392 — 393 — 393 
Mortgage loans - LOCOM21 — — 21 21 
Total loans held for sale501 — 467 35 502 
Securities available for sale (a)7,873 — 7,873 — 7,873 
Securities held to maturity1,189 — 1,038 — 1,038 
Derivative assets (a)328 7 321 — 328 
Other assets:
Tax credit investments820 — — 763 763 
Deferred compensation mutual funds110 110 — — 110 
Equity, mutual funds, and other (b)299 3 — 296 299 
Total other assets1,229 113 — 1,059 1,172 
Total assets$78,910 $1,278 $11,676 $65,196 $78,150 
Liabilities:
Defined maturity deposits$10,018 $— $9,988 $— $9,988 
Trading liabilities (a)533 — 533 — 533 
Short-term financial liabilities:
Federal funds purchased828 — 828 — 828 
Securities sold under agreements to repurchase1,333 — 1,333 — 1,333 
Other short-term borrowings842 — 842 — 842 
Total short-term financial liabilities3,003 — 3,003 — 3,003 
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 borrowings1,038 — 1,042 — 1,042 
Total term borrowings1,321 — 1,042 278 1,320 
Derivative liabilities (a)432 7 403 22 432 
Total liabilities$15,307 $7 $14,969 $300 $15,276 
(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 $93 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 June 30, 2026 and December 31, 2025.
UNFUNDED COMMITMENTS
Contractual AmountFair Value
(Dollars in millions)June 30, 2026December 31, 2025June 30, 2026December 31, 2025
Unfunded Commitments:
Loan commitments$23,217 $21,676 $1 $1 
Standby and other commitments822 804 9 10