Cover
Cover - shares | May 06, 2021 | Mar. 31, 2021 |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-15185 | |
Entity Registrant Name | FIRST HORIZON CORP | |
Entity Incorporation, State or Country Code | TN | |
Entity Tax Identification Number | 62-0803242 | |
Entity Address, Address Line One | 165 Madison Avenue | |
Entity Address, City or Town | Memphis, | |
Entity Address, State or Province | TN | |
Entity Address, Postal Zip Code | 38103 | |
City Area Code | 901 | |
Local Phone Number | 523-4444 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 552,374,489 | |
Entity Central Index Key | 0000036966 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Information, Former Legal or Registered Name | FIRST HORIZON NATIONAL CORP | |
$.625 Par Value Common Capital Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | $.625 Par Value Common Capital Stock | |
Trading Symbol | FHN | |
Security Exchange Name | NYSE | |
Depositary Shares, each representing a 1/4,000th interest in a share of Non-Cumulative Perpetual Preferred Stock, Series A | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/4,000th interest ina share of Non-Cumulative Perpetual Preferred Stock, Series A | |
Trading Symbol | FHN PR A | |
Security Exchange Name | NYSE | |
Depositary Shares, each representing a 1/400th interest in a share of Non-Cumulative Perpetual Preferred Stock, Series B | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/400th interest ina share of Non-Cumulative Perpetual Preferred Stock, Series B | |
Trading Symbol | FHN PR B | |
Security Exchange Name | NYSE | |
Depositary Shares, each representing a 1/400th interest in a share of Non-Cumulative Perpetual Preferred Stock, Series C | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/400th interest ina share of Non-Cumulative Perpetual Preferred Stock, Series C | |
Trading Symbol | FHN PR C | |
Security Exchange Name | NYSE | |
Depositary Shares, each representing a 1/400th interest in a share of Non-Cumulative Perpetual Preferred Stock, Series D | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/400th interest ina share of Non-Cumulative Perpetual Preferred Stock, Series D | |
Trading Symbol | FHN PR D | |
Security Exchange Name | NYSE | |
Depositary Shares, each representing a 1/4,000th interest in a share of Non-Cumulative Perpetual Preferred Stock, Series E | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/4,000th interest ina share of Non-Cumulative Perpetual Preferred Stock, Series E | |
Trading Symbol | FHN PR E | |
Security Exchange Name | NYSE | |
Depositary Shares, each representing a 1/4,000th interest in a share of Non-Cumulative Perpetual Preferred Stock, Series F* | Subsequent Event | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/4,000th interest ina share of Non-Cumulative Perpetual Preferred Stock, Series F* | |
Trading Symbol | FHN PR F | |
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and due from banks | $ 1,169 | $ 1,203 |
Interest-bearing deposits with banks | 11,635 | 8,351 |
Federal funds sold and securities purchased under agreements to resell | 520 | 445 |
Trading securities | 1,076 | 1,176 |
Securities available for sale at fair value | 8,351 | 8,047 |
Loans held for sale (including $449 and $405 at fair value, respectively) | 811 | 1,022 |
Loans and leases (including $17 and $16 at fair value, respectively) | 58,600 | 58,232 |
Allowance for loan and lease losses | (914) | (963) |
Net loans and leases | 57,686 | 57,269 |
Premises and equipment | 719 | 759 |
Goodwill | 1,511 | 1,511 |
Other intangible assets | 339 | 354 |
Other assets | 3,696 | 4,072 |
Total assets | 87,513 | 84,209 |
Liabilities | ||
Noninterest-bearing deposits | 25,046 | 22,173 |
Interest-bearing deposits | 48,120 | 47,809 |
Total deposits | 73,166 | 69,982 |
Trading liabilities | 454 | 353 |
Short-term borrowings | 2,203 | 2,198 |
Term borrowings | 1,671 | 1,670 |
Other liabilities | 1,712 | 1,699 |
Total liabilities | 79,206 | 75,902 |
Equity | ||
Preferred stock, Non-cumulative perpetual, no par value; authorized 5,000,000 shares; issued 26,250 shares | 470 | 470 |
Common stock, $0.625 par value; authorized 700,000,000 shares; issued 552,374,489 and 555,030,652 shares, respectively | 345 | 347 |
Capital surplus | 5,036 | 5,074 |
Retained earnings | 2,402 | 2,261 |
Accumulated other comprehensive loss, net | (241) | (140) |
FHN shareholders' equity | 8,012 | 8,012 |
Noncontrolling interest | 295 | 295 |
Total equity | 8,307 | 8,307 |
Total liabilities and equity | $ 87,513 | $ 84,209 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Loans held-for-sale, at fair value | $ 449 | $ 405 |
Loans and leases, at fair value | $ 17 | $ 16 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 26,250 | 26,250 |
Common stock, par value (in dollars per share) | $ 0.625 | $ 0.625 |
Common stock, shares authorized (in shares) | 700,000,000 | 700,000,000 |
Common stock, shares issued (in shares) | 552,374,489 | 555,030,652 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Interest income | ||
Interest and fees on loans and leases | $ 507 | $ 327 |
Interest and fees on loans held for sale | 7 | 7 |
Interest on securities available for sale | 29 | 27 |
Interest on trading securities | 7 | 13 |
Interest on other earning assets | 2 | 4 |
Total interest income | 552 | 378 |
Interest expense | ||
Interest on deposits | 24 | 54 |
Interest on trading liabilities | 1 | 3 |
Interest on short-term borrowings | 1 | 10 |
Interest on term borrowings | 18 | 8 |
Total interest expense | 44 | 75 |
Net interest income | 508 | 303 |
Provision for credit losses | (45) | 154 |
Net interest income after provision for credit losses | 553 | 149 |
Noninterest income | ||
Fixed income | 126 | 96 |
Mortgage banking and title income | 53 | 2 |
Deposit transactions and cash management | 42 | 30 |
Brokerage, management fees and commissions | 20 | 16 |
Trust services and investment management | 12 | 7 |
Bankcard income | 11 | 7 |
Other income | 34 | 16 |
Total noninterest income | 298 | 174 |
Noninterest expense | ||
Personnel expense | 318 | 183 |
Net occupancy expense | 37 | 20 |
Computer software | 28 | 16 |
Legal and professional fees | 14 | 9 |
Operations services | 16 | 12 |
Equipment expense | 11 | 9 |
Amortization of intangible assets | 14 | 5 |
Other expense | 106 | 48 |
Total noninterest expense | 544 | 302 |
Income before income taxes | 307 | 21 |
Income tax expense | 71 | 5 |
Net income | 236 | 16 |
Net income attributable to noncontrolling interest | 3 | 3 |
Net income attributable to controlling interest | 233 | 13 |
Preferred stock dividends | 8 | 1 |
Net income available to common shareholders | $ 225 | $ 12 |
Basic earnings per common share (in dollars per share) | $ 0.41 | $ 0.04 |
Diluted earnings per common share (in dollars per share) | $ 0.40 | $ 0.04 |
Weighted average common shares (in shares) | 552,249 | 311,597 |
Diluted average common shares (in shares) | 557,532 | 313,170 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statements of Comprehensive Income/(loss) | ||
Net income | $ 236 | $ 16 |
Other comprehensive income (loss), net of tax: | ||
Net unrealized gains (losses) on securities available for sale | (103) | 89 |
Net unrealized gains (losses) on cash flow hedges | (2) | 13 |
Net unrealized gains (losses) on pension and other postretirement plans | 4 | 2 |
Other comprehensive income (loss) | (101) | 104 |
Comprehensive income (loss) | 135 | 120 |
Comprehensive income attributable to noncontrolling interest | 3 | 3 |
Comprehensive income attributable to controlling interest | 132 | 117 |
Income tax expense (benefit) of items included in Other comprehensive income: | ||
Net unrealized gains (losses) on securities available for sale | (33) | 29 |
Net unrealized gains (losses) on cash flow hedges | (1) | 4 |
Net unrealized gains (losses) on pension and other postretirement plans | $ 1 | $ 1 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) shares in Thousands, $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Adjusted balance | Preferred Stock | Preferred StockAdjusted balance | Common Stock | Common StockAdjusted balance | Capital Surplus | Capital SurplusAdjusted balance | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Retained EarningsAdjusted balance | Accumulated Other Comprehensive Income/(Loss) | Accumulated Other Comprehensive Income/(Loss)Adjusted balance | [1] | Noncontrolling Interest | Noncontrolling InterestAdjusted balance | ||
Balance, beginning of period (in shares) at Dec. 31, 2019 | 1,000 | 1,000 | 311,469 | 311,469 | |||||||||||||||
Balance, beginning of period at Dec. 31, 2019 | $ 5,076 | $ (96) | $ 4,980 | $ 96 | $ 96 | $ 195 | $ 195 | $ 2,931 | $ 2,931 | $ 1,798 | $ (96) | $ 1,702 | $ (239) | [1] | $ (239) | $ 295 | $ 295 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Net income | 16 | 13 | 3 | ||||||||||||||||
Other comprehensive income (loss) | 104 | 104 | [1] | ||||||||||||||||
Comprehensive income (loss) | 120 | 13 | 104 | [1] | 3 | ||||||||||||||
Cash dividends declared: | |||||||||||||||||||
Preferred stock | (1) | (1) | |||||||||||||||||
Common stock | (48) | (48) | |||||||||||||||||
Common stock repurchased (in shares) | (141) | ||||||||||||||||||
Common stock repurchased | (2) | $ 0 | (2) | ||||||||||||||||
Common stock issued for: | |||||||||||||||||||
Stock options and restricted stock - equity awards (in shares) | 652 | ||||||||||||||||||
Stock options and restricted stock - equity awards | 4 | $ 0 | 4 | ||||||||||||||||
Stock-based compensation expense | 7 | 7 | |||||||||||||||||
Dividends declared - noncontrolling interest of subsidiary preferred stock | (3) | (3) | |||||||||||||||||
Other (in shares) | [2] | (117) | |||||||||||||||||
Other | [2] | (1) | $ 0 | (1) | |||||||||||||||
Balance, ending of period (in shares) at Mar. 31, 2020 | 1,000 | 311,863 | |||||||||||||||||
Balance, end of period at Mar. 31, 2020 | 5,056 | $ 96 | $ 195 | 2,939 | 1,666 | (135) | [1] | 295 | |||||||||||
Balance, beginning of period (in shares) at Dec. 31, 2020 | 26,250 | 555,031 | |||||||||||||||||
Balance, beginning of period at Dec. 31, 2020 | 8,307 | $ 470 | $ 347 | 5,074 | 2,261 | (140) | [3] | 295 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Net income | 236 | 233 | 3 | ||||||||||||||||
Other comprehensive income (loss) | (101) | (101) | [3] | ||||||||||||||||
Comprehensive income (loss) | 135 | 233 | (101) | [3] | 3 | ||||||||||||||
Cash dividends declared: | |||||||||||||||||||
Preferred stock | (8) | (8) | |||||||||||||||||
Common stock | (84) | (84) | |||||||||||||||||
Common stock repurchased (in shares) | [4] | (3,864) | |||||||||||||||||
Common stock repurchased | [4] | (62) | $ (2) | (60) | |||||||||||||||
Common stock issued for: | |||||||||||||||||||
Stock options and restricted stock - equity awards (in shares) | 1,208 | ||||||||||||||||||
Stock options and restricted stock - equity awards | 12 | $ 0 | 12 | ||||||||||||||||
Stock-based compensation expense | 10 | 10 | |||||||||||||||||
Dividends declared - noncontrolling interest of subsidiary preferred stock | (3) | (3) | |||||||||||||||||
Balance, ending of period (in shares) at Mar. 31, 2021 | 26,250 | 552,375 | |||||||||||||||||
Balance, end of period at Mar. 31, 2021 | $ 8,307 | $ 470 | $ 345 | $ 5,036 | $ 2,402 | $ (241) | [3] | $ 295 | |||||||||||
[1] | Due to the nature of the preferred stock issued by FHN and its subsidiaries, all components of Other comprehensive income (loss) have been attributed solely to FHN as the controlling interest holder. | ||||||||||||||||||
[2] | Represents shares canceled in connection with the resolution of remaining Capital Bank Financial Corporation ("CBF") dissenters' appraisal process. | ||||||||||||||||||
[3] | Due to the nature of the preferred stock issued by FHN and its subsidiaries, all components of Other comprehensive income (loss) have been attributed solely to FHN as the controlling interest holder. | ||||||||||||||||||
[4] | Includes $59 million repurchased under share repurchase programs. |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF EQUITY (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2019 | ||
Preferred stock - cash dividends declared per share (in dollars per share) | $ 1,550 | |||
Common stock - cash dividends declared per share (in dollars per share) | $ 0.15 | |||
Common stock repurchased under share repurchase program | $ 62 | [1] | $ 2 | |
First Horizon Share Repurchase Program | ||||
Common stock repurchased under share repurchase program | $ 59 | |||
[1] | Includes $59 million repurchased under share repurchase programs. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating Activities | ||
Net income | $ 236 | $ 16 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Provision for credit losses | (45) | 154 |
Deferred income tax expense (benefit) | (3) | (19) |
Depreciation and amortization of premises and equipment | 16 | 11 |
Amortization of intangible assets | 14 | 5 |
Net other amortization and accretion | (14) | 4 |
Net (increase) decrease in derivatives | 322 | (324) |
Stock-based compensation expense | 10 | 7 |
Net (gains) losses on sale/disposal of fixed assets | 34 | 0 |
Loans held for sale: | ||
Purchases and originations | (943) | (588) |
Gross proceeds from settlements and sales | 683 | 181 |
(Gain) loss due to fair value adjustments and other | (35) | (1) |
Other operating activities, net | 789 | (846) |
Total adjustments | 828 | (1,416) |
Net cash provided by (used in) operating activities | 1,064 | (1,400) |
Investing Activities | ||
Proceeds from sales of securities available for sale | 26 | 9 |
Proceeds from maturities of securities available for sale | 591 | 224 |
Purchases of securities available for sale | (1,065) | (214) |
Proceeds from sales of premises and equipment | 1 | 2 |
Purchases of premises and equipment | (10) | (8) |
Proceeds from BOLI | 1 | 2 |
Net increase in loans and leases | (338) | (2,312) |
Net increase in interest-bearing deposits with banks | (3,284) | (188) |
Other investing activities, net | 6 | 3 |
Net cash used in investing activities | (4,072) | (2,482) |
Common stock: | ||
Stock options exercised | 12 | 4 |
Cash dividends paid | (84) | (44) |
Repurchase of shares | (62) | (2) |
Cancellation of common shares | 0 | (2) |
Cash dividends paid - preferred stock - noncontrolling interest | (3) | (3) |
Cash dividends paid - preferred stock | (8) | (2) |
Net increase in deposits | 3,190 | 1,990 |
Net increase in short-term borrowings | 4 | 1,807 |
Increases (decreases) in restricted and secured term borrowings | 0 | (3) |
Net cash provided by financing activities | 3,049 | 3,745 |
Net increase (decrease) in cash and cash equivalents | 41 | (137) |
Cash and cash equivalents at beginning of period | 1,648 | 1,267 |
Cash and cash equivalents at end of period | 1,689 | 1,130 |
Supplemental Disclosures | ||
Total interest paid | 39 | 84 |
Total taxes paid | 2 | 5 |
Total taxes refunded | 4 | 0 |
Transfer from loans to OREO | 0 | 1 |
Transfer from loans HFS to trading securities | 498 | 398 |
Transfer from loans to loans HFS | $ (3) | $ 0 |
Basis of Presentation and Accou
Basis of Presentation and Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Accounting Policies | Basis of Presentation and Accounting Policies The accompanying unaudited consolidated financial statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and notes necessary for complete financial statements in accordance with GAAP. In the opinion of management, the accompanying unaudited consolidated financial statements contain all significant adjustments, consisting of normal and recurring items, considered necessary for fair presentation. These interim financial statements should be read in conjunction with FHN's audited consolidated financial statements and notes in FHN's Annual Report on Form 10-K for the year ended December 31, 2020. Operating results for the interim period are not necessarily indicative of the results that may be expected for the full year. All significant intercompany balances and transactions have been eliminated in consolidation. Certain amounts reported in prior years have been reclassified to conform to the current period presentation. See the Glossary of Acronyms and Terms included in this Report for terms used herein. Accounting Changes With Extended Transition Periods In March 2020, the FASB issued ASU 2020-04, “Facilitation of the Effects of Reference Rate Reform on Financial Reporting” which provides several optional expedients and exceptions to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The provisions of ASU 2020-04 primarily affect 1) contract modifications (e.g., loans, leases, debt, and derivatives) made in anticipation that a reference rate (e.g., LIBOR) will be discontinued and 2) the application of hedge accounting for existing relationships affected by those modifications. The provisions of ASU 2020-04 are effective upon release and apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by ASU 2020-04 do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. FHN has been identifying contracts affected by reference rate reform and developing modification plans for those contracts. FHN has elected to utilize the optional expedients and exceptions provided by ASU 2020-04 for certain contract modifications. FHN anticipates that it will continue to utilize the expedients and exceptions in situations where they mitigate potential accounting outcomes that do not faithfully represent management’s intent or risk management activities, consistent with the purpose of the standard. In January 2021, the FASB issued ASU 2021-01, "Scope" to expand the scope of ASU 2020-04 to apply to certain contract modifications that were implemented in October 2020 by derivative clearinghouses for the use of Secure Overnight Funding Rate (SOFR) in discounting, margining and price alignment for centrally cleared derivatives, including derivatives utilized in hedging relationships. ASU 2021-01 also applies to derivative contracts affected by the change in discounting convention regardless of whether they are centrally cleared (i.e., bi-lateral contracts can also be modified) and regardless of whether they reference LIBOR. ASU 2021-01 was effective immediately upon issuance with retroactive application permitted. FHN elected to retroactively apply the provisions of ASU 2021-01 because FHN's centrally cleared derivatives were affected by the change in discounting convention and because FHN has other bi-lateral derivative contracts that may be modified to conform to the use of SOFR for discounting. Adoption did not have a significant effect on FHN's reported financial condition or earnings. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures On July 1, 2020, FHN and IBERIABANK Corporation closed their merger-of-equals transaction. FHN issued approximately 243 million shares of FHN common stock, plus three new series of preferred stock (Series B, Series C, and Series D) in a transaction valued at $2.5 billion. At the time of closing, IBKC operated 319 offices in 12 states, mostly in the southern U.S. The merger-of-equals transaction has been accounted for as a business combination. Accordingly, the assets acquired and liabilities assumed are generally presented at their fair values as of the merger date. The determination of fair value requires management to make estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature and subject to change. The following schedule details a preliminary allocation of merger consideration to the valuations of the identifiable tangible and intangible assets acquired and liabilities assumed from IBKC as of July 1, 2020. (Dollars in millions) IBERIABANK Corporation Assets: Cash and due from banks $ 395 Interest-bearing deposits with banks 1,683 Securities available for sale at fair value 3,544 Loans held for sale 320 Loans and leases (a) 25,921 Allowance for loan and lease losses (284) Other intangible assets 240 Premises and equipment 311 OREO 9 Other assets 1,156 Total assets acquired $ 33,295 Liabilities: Deposits $ 28,232 Short-term borrowings 209 Term borrowings 1,200 Other liabilities 618 Total liabilities assumed $ 30,259 Net assets acquired $ 3,036 Consideration paid: Consideration for outstanding common stock $ 2,243 Consideration for equity awards 28 Consideration for preferred stock 231 Total consideration paid $ 2,502 Preliminary purchase accounting gain $ (534) (a) Includes $1.3 billion of initial net investments in sales-type and direct financing leases. In relation to the merger-of-equals transaction, FHN recorded a preliminary $533 million purchase accounting gain in 2020 and an additional $1 million purchase accounting gain during the first quarter of 2021, representing the shortfall of the purchase price under the acquisition accounting value of net assets acquired, net of deferred taxes. The preliminary purchase accounting gain is not taxable. Due to the fact that certain back office functions (including loan processing) have not been integrated, the ongoing evaluation of post-merger activity, and the extended information gathering and management review processes required to properly record acquired assets and liabilities, FHN considers its valuations of IBKC's loans and leases, other assets, tax receivables and payables, other liabilities and acquired contingencies to be provisional as management continues to identify and assess information regarding the nature of these assets and liabilities and reviews the associated valuation assumptions and methodologies. Accordingly, the amounts recorded for current and deferred tax assets and liabilities are also considered provisional as FHN continues to evaluate the nature and extent of permanent and temporary (timing) differences between the book and tax bases of the acquired assets and liabilities assumed. Additionally, the accounting policies of both FHN and IBKC are in the process of being reviewed in detail. Upon completion of such review, conforming adjustments or financial statement reclassification may be determined. All measurement period adjustments made during the first three months of 2021 have been deemed insignificant individually and in the aggregate. FHN will finalize its valuation of the IBKC merger-of-equals transaction within the measurement period (i.e., no later than July 1, 2021). See Note 2, Acquisitions and Divestitures, in the 2020 Annual Report on Form 10-K for the year ended December 31, 2020, for a description of the methods used to determine the fair values of significant assets acquired and liabilities assumed presented above. On July 17, 2020, First Horizon Bank completed its purchase of 30 branches from Truist Bank. As of December 31, 2020, the valuation of the acquired assets and liabilities assumed from the Truist branches acquisition was final. In relation to the acquisition, FHN recorded $78 million in goodwill, representing the excess of acquisition consideration over the estimated fair value of net assets acquired. All goodwill has been attributed to FHN's Regional Banking segment (refer to Note 7 - Intangible Assets for additional information). This goodwill was the result of expected synergies, operational efficiencies and other factors. Expenses related to FHN's merger and integration activities are recorded in FHN's Corporate segment. Total merger and integration expense recognized for the three months ended March 31, 2021 and 2020 are presented in the table below: Three Months Ended (Dollars in millions) 2021 2020 Personnel expense (a) $ 21 $ 1 Legal and professional fees (b) 3 2 Net occupancy expense (c) 3 — Other expense (d) 43 3 Total $ 70 $ 6 Certain previously reported amounts have been reclassified to agree with current presentation. (a) Primarily comprised of fees for severance and retention. (b) Primarily comprised of fees for legal, accounting, and merger consultants. (c) Primarily relates to expenses associated with lease exits. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2021 | |
Marketable Securities [Abstract] | |
Investment Securities | Investment Securities The following tables summarize FHN’s investment securities on March 31, 2021 and December 31, 2020: March 31, 2021 (Dollars in millions) Amortized Gross Gross Fair Securities available for sale: U.S. treasuries $ 610 $ — $ — $ 610 Government agency issued MBS 4,009 68 (39) 4,038 Government agency issued CMO 2,463 19 (41) 2,441 Other U.S. government agencies 733 5 (13) 725 Corporate and other debt 40 — — 40 States and municipalities 467 9 (1) 475 $ 8,322 $ 101 $ (94) 8,329 AFS securities recorded at fair value through earnings: SBA-interest only strips (a) 22 Total securities available for sale (b) $ 8,351 (a) SBA-interest only strips are recorded at elected fair value. See Note 17 - Fair Value of Assets and Liabilities for additional information. (b) Includes $7.0 billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes. December 31, 2020 (Dollars in millions) Amortized Gross Gross Fair Securities available for sale: U.S. treasuries $ 613 $ — $ — $ 613 Government agency issued MBS 3,722 92 (2) 3,812 Government agency issued CMO 2,380 29 (3) 2,406 Other U.S. government agencies 672 12 — 684 Corporate and other debt 40 1 (1) 40 States and municipalities 445 15 — 460 $ 7,872 $ 149 $ (6) 8,015 AFS securities recorded at fair value through earnings: SBA-interest only strips (a) 32 Total securities available for sale (b) $ 8,047 (a) SBA-interest only strips are recorded at elected fair value. See Note 17 - Fair Value of Assets and Liabilities for additional information. (b) Includes $6.4 billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes. The amortized cost and fair value by contractual maturity for the available-for-sale debt securities portfolio on March 31, 2021 is provided below: Available for Sale (Dollars in millions) Amortized Fair Within 1 year $ 758 $ 759 After 1 year through 5 years 146 148 After 5 years through 10 years 345 348 After 10 years 601 617 Subtotal 1,850 1,872 Government agency issued MBS and CMO (a) 6,472 6,479 Total $ 8,322 $ 8,351 (a) Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Gross gains and losses on sales of debt investment securities and cash proceeds from the sale of available-for-sale securities for the three months ended March 31, 2021 and 2020 were insignificant. The following tables provide information on investments within the available-for-sale portfolio that had unrealized losses as of March 31, 2021 and December 31, 2020: As of March 31, 2021 Less than 12 months 12 months or longer Total (Dollars in millions) Fair Unrealized Fair Unrealized Fair Unrealized Government agency issued MBS $ 1,772 $ (39) $ — $ — $ 1,772 $ (39) Government agency issued CMO 1,508 (41) — — 1,508 (41) Other U.S. government agencies 405 (13) — — 405 (13) States and municipalities 82 (1) — — 82 (1) Total $ 3,767 $ (94) $ — $ — $ 3,767 $ (94) As of December 31, 2020 Less than 12 months 12 months or longer Total (Dollars in millions) Fair Unrealized Fair Unrealized Fair Unrealized U.S. treasuries $ 307 $ — $ — $ — $ 307 $ — Government agency issued MBS 426 (2) — — 426 (2) Government agency issued CMO 586 (3) — — 586 (3) Other U.S. government agencies 80 (1) — — 80 (1) States and municipalities 1 — — — 1 — Total $ 1,400 $ (6) $ — $ — $ 1,400 $ (6) FHN has evaluated all AFS debt securities that were in unrealized loss positions in accordance with its accounting policy for recognition of credit losses. No AFS debt securities were determined to have credit losses because the primary cause of the decline in value was attributable to changes in interest rates. Total AIR not included in the fair value or amortized cost basis of AFS debt securities was $24 million and $22 million as of March 31, 2021 and December 31, 2020, respectively. Consistent with FHN's review of the related securities, there were no credit-related write downs of AIR for AFS debt securities during the reporting period. Additionally, for AFS debt securities with unrealized losses, FHN does not intend to sell them and it is more-likely-than-not that FHN will not be required to sell them prior to recovery. Therefore, no write downs of these investments to fair value occurred during the reporting period. The carrying amount of equity investments without a readily determinable fair value was $70 million and $57 million at March 31, 2021 and December 31, 2020, respectively. The year-to-date 2021 and 2020 gross amounts of upward and downward valuation adjustments were not significant. Unrealized gains of $3 million were recognized in the three months ended March 31, 2021 and 2020, respectively, for equity investments with readily determinable fair values. |
Loans and Leases
Loans and Leases | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Loans and Leases | Loans and Leases The loans 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, 2021 and December 31, 2020, excluding accrued interest of $182 million and $180 million, respectively, which is included in Other assets in the Consolidated Balance Sheets. (Dollars in millions) March 31, 2021 December 31, 2020 Commercial: Commercial and industrial (a) (b) $ 28,421 $ 27,700 Loans to mortgage companies 5,530 5,404 Total commercial, financial, and industrial 33,951 33,104 Commercial real estate 12,470 12,275 Consumer: HELOC 2,270 2,420 Real estate installment loans 8,783 9,305 Total consumer real estate 11,053 11,725 Credit card and other 1,126 1,128 Loans and leases $ 58,600 $ 58,232 Allowance for loan and lease losses (914) (963) Net loans and leases $ 57,686 $ 57,269 (a) Includes equipment financing leases of $614 million and $587 million, respectively, as of March 31, 2021 and December 31, 2020. (b) Includes PPP loans fully guaranteed by the SBA of $5.1 billion and $4.1 billion as of March 31, 2021 and December 31, 2020, respectively. Restrictions Loans and leases with carrying values of $38.1 million and $38.6 billion were pledged as collateral for borrowings at March 31, 2021 and December 31, 2020, respectively. Concentrations of Credit Risk Most of the 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, 2021, FHN had loans to mortgage companies of $5.5 billion and loans to finance and insurance companies of $3.1 billion. As a result, 25% 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. As a response to the COVID-19 pandemic, FHN identified a segment of its commercial portfolio that requires a quarterly re- grading process. As borrowers recover, they can be removed from the quarterly re-grading process with credit officer concurrence. 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 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, 2021 and December 31, 2020: March 31, 2021 C&I (Dollars in millions) 2021 2020 2019 2018 2017 Prior to 2017 LMC (a) Revolving Revolving Total Credit Quality Indicator: Pass (PD grades 1 through 12) (c) $ 2,368 $ 7,915 $ 4,572 $ 2,174 $ 1,600 $ 3,038 $ 5,530 $ 5,535 $ 14 $ 32,746 Special Mention (PD grade 13) 5 68 65 51 28 81 — 189 7 494 Substandard, Doubtful, or Loss (PD grades 14,15, and 16) 35 148 80 124 35 94 — 148 47 711 Total C&I loans $ 2,408 $ 8,131 $ 4,717 $ 2,349 $ 1,663 $ 3,213 $ 5,530 $ 5,872 $ 68 $ 33,951 (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. (b) C&I loans converted from revolving to term in 2021 were not material. (c) 2021 and 2020 balances include PPP loans. December 31, 2020 C&I (Dollars in millions) 2020 2019 2018 2017 2016 Prior to 2016 LMC (a) Revolving Revolving Total Credit Quality Indicator: Pass (PD grades 1 through 12) (c) $ 9,060 $ 5,138 $ 2,628 $ 1,748 $ 1,161 $ 2,145 $ 5,404 $ 4,571 $ 60 $ 31,915 Special Mention (PD grade 13) 89 93 70 31 37 64 — 127 1 512 Substandard, Doubtful, or Loss (PD grades 14,15, and 16) 182 77 114 50 42 58 — 95 59 677 Total C&I loans $ 9,331 $ 5,308 $ 2,812 $ 1,829 $ 1,240 $ 2,267 $ 5,404 $ 4,793 $ 120 $ 33,104 (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. (b) $50 million of C&I loans were converted from revolving to term in 2020. (c) 2020 balances include PPP loans. March 31, 2021 CRE (Dollars in millions) 2021 2020 2019 2018 2017 Prior to 2017 Revolving Revolving Total Credit Quality Indicator: Pass (PD grades 1 through 12) $ 514 $ 2,346 $ 3,350 $ 1,612 $ 1,024 $ 2,652 $ 320 $ — $ 11,818 Special Mention (PD grade 13) — 74 38 178 77 109 — — 476 Substandard, Doubtful, or Loss (PD grades 14,15, and 16) — 18 12 21 43 57 25 — 176 Total CRE loans $ 514 $ 2,438 $ 3,400 $ 1,811 $ 1,144 $ 2,818 $ 345 $ — $ 12,470 December 31, 2020 CRE (Dollars in millions) 2020 2019 2018 2017 2016 Prior to 2016 Revolving Revolving Total Credit Quality Indicator: Pass (PD grades 1 through 12) $ 2,477 $ 3,311 $ 1,750 $ 1,140 $ 946 $ 1,800 $ 259 $ 19 $ 11,702 Special Mention (PD grade 13) 48 24 117 75 71 54 — — 389 Substandard, Doubtful, or Loss (PD grades 14,15, and 16) 30 13 21 42 27 33 18 — 184 Total CRE loans $ 2,555 $ 3,348 $ 1,888 $ 1,257 $ 1,044 $ 1,887 $ 277 $ 19 $ 12,275 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, 2021 and December 31, 2020. Within consumer real estate, classes include HELOC and real estate installment. 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 revolving loans converted to term loans. All loans classified in the following tables as revolving loans or revolving loans converted to term loans are HELOCs. Real estate installment loans are originated as a fixed term loan and are classified below in their vintage year. All loans in the following tables classified in a vintage year are real estate installment loans. March 31, 2021 Consumer Real Estate (Dollars in millions) 2021 2020 2019 2018 2017 Prior to 2017 Revolving Revolving Total FICO score 740 or greater $ 131 $ 1,195 $ 1,060 $ 613 $ 529 $ 2,230 $ 1,200 $ 150 $ 7,108 FICO score 720-739 8 163 142 91 69 249 179 27 928 FICO score 700-719 15 129 103 75 72 267 173 31 865 FICO score 660-699 13 121 120 115 69 329 238 53 1,058 FICO score 620-659 1 40 57 31 21 134 83 35 402 FICO score less than 620 108 58 32 41 50 302 56 45 692 Total $ 276 $ 1,706 $ 1,514 $ 966 $ 810 $ 3,511 $ 1,929 $ 341 $ 11,053 (a) $11 million of HELOC loans were converted from revolving to term in 2021. December 31, 2020 Consumer Real Estate (Dollars in millions) 2020 2019 2018 2017 2016 Prior to 2016 Revolving Revolving Loans converted to term loans Total FICO score 740 or greater $ 1,186 $ 1,167 $ 703 $ 610 $ 674 $ 1,719 $ 1,275 $ 159 $ 7,493 FICO score 720-739 157 158 100 77 92 197 186 29 996 FICO score 700-719 122 107 78 76 73 221 177 34 888 FICO score 660-699 130 141 123 75 85 296 264 59 1,173 FICO score 620-659 45 61 37 28 35 127 92 36 461 FICO score less than 620 107 36 52 54 95 261 61 48 714 Total $ 1,747 $ 1,670 $ 1,093 $ 920 $ 1,054 $ 2,821 $ 2,055 $ 365 $ 11,725 The following tables reflect the amortized cost basis by year of origination and refreshed FICO scores for credit card and other loans as of March 31, 2021 and December 31, 2020. March 31, 2021 Credit Card and Other (Dollars in millions) 2021 2020 2019 2018 2017 Prior to 2017 Revolving Revolving Total FICO score 740 or greater $ 13 $ 51 $ 43 $ 53 $ 32 $ 119 $ 279 $ 6 $ 596 FICO score 720-739 2 8 7 6 7 30 36 2 98 FICO score 700-719 3 8 7 8 6 38 35 2 107 FICO score 660-699 2 29 10 14 8 52 41 3 159 FICO score 620-659 1 4 4 6 4 31 19 1 70 FICO score less than 620 11 9 6 7 10 30 21 2 96 Total $ 32 $ 109 $ 77 $ 94 $ 67 $ 300 $ 431 $ 16 $ 1,126 (a) $2 million of other consumer loans were converted from revolving to term in 2021. December 31, 2020 Credit Card and Other (Dollars in millions) 2020 2019 2018 2017 2016 Prior to 2016 Revolving Revolving Loans converted to term loans Total FICO score 740 or greater $ 57 $ 52 $ 59 $ 37 $ 23 $ 116 $ 159 $ 5 $ 508 FICO score 720-739 7 7 9 8 8 27 91 2 159 FICO score 700-719 9 8 9 8 4 38 37 3 116 FICO score 660-699 30 12 15 9 9 48 46 3 172 FICO score 620-659 5 5 7 5 10 24 20 1 77 FICO score less than 620 14 7 8 11 9 26 20 1 96 Total $ 122 $ 91 $ 107 $ 78 $ 63 $ 279 $ 373 $ 15 $ 1,128 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. In accordance with revised Interagency Guidance issued in 2020, FHN is not required to designate loans with deferrals granted in response to COVID-19 as past due because of such deferrals. If a borrower defers payment, this may result in no contractual payments being past due, and as such, loans would not be considered past due during the period of deferral, and as a result, are excluded from loans past due 30-89 days and loans 90+ days past due in the tables below. The following table reflects accruing and non-accruing loans and leases by class on March 31, 2021 and December 31, 2020: March 31, 2021 Accruing Non-Accruing (Dollars in millions) Current 30-89 90+ Total Current 30-89 90+ Total Total Commercial, financial, and industrial: C&I (a) (b) $ 28,251 $ 26 $ — $ 28,277 $ 102 $ 7 $ 35 $ 144 $ 28,421 Loans to mortgage companies 5,530 — — 5,530 — — — — 5,530 Total commercial, financial, and industrial 33,781 26 — 33,807 102 7 35 144 33,951 Commercial real estate: CRE 12,392 11 — 12,403 20 3 44 67 12,470 Consumer real estate: HELOC 2,198 6 9 2,213 43 2 12 57 2,270 Real estate installment loans 8,623 33 4 8,660 72 8 43 123 8,783 Total consumer real estate 10,821 39 13 10,873 115 10 55 180 11,053 Credit card and other: Credit card 273 2 — 275 — — — — 275 Other 845 3 — 848 1 1 1 3 851 Total credit card and other 1,118 5 — 1,123 1 1 1 3 1,126 Total loans and leases $ 58,112 $ 81 $ 13 $ 58,206 $ 238 $ 21 $ 135 $ 394 $ 58,600 (a) $100 million of C&I loans are nonaccrual loans that have been specifically reviewed for impairment with no related allowance. (b) C&I loans include TRUPS loans of $210 million, which is net of an amortizing discount of $18 million. December 31, 2020 Accruing Non-Accruing (Dollars in millions) Current 30-89 90+ Total Current 30-89 90+ Total Total Commercial, financial, and industrial: C&I (a) (b) $ 27,541 $ 15 $ — $ 27,556 $ 88 $ 12 $ 44 $ 144 $ 27,700 Loans to mortgage companies 5,404 — — 5,404 — — — — 5,404 Total commercial, financial, and industrial 32,945 15 — 32,960 88 12 44 144 33,104 Commercial real estate: CRE 12,194 23 — 12,217 10 42 6 58 12,275 Consumer real estate: HELOC 2,336 13 11 2,360 43 3 14 60 2,420 Real estate installment loans 9,138 40 5 9,183 63 9 50 122 9,305 Total consumer real estate 11,474 53 16 11,543 106 12 64 182 11,725 Credit card and other: Credit card 279 3 1 283 — — — — 283 Other 838 6 — 844 1 — 1 2 845 Total credit card and other 1,117 9 1 1,127 1 — 1 2 1,128 Total loans and leases, net of unearned income $ 57,730 $ 100 $ 17 $ 57,847 $ 205 $ 66 $ 115 $ 386 $ 58,232 (a) $101 million of C&I loans are nonaccrual loans that have been specifically reviewed for impairment with no related allowance. (b) C&I loans include TRUPs loans of $210 million, which is net of an amortizing discount of $18 million. 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, 2021 and December 31, 2020 , FHN had commercial loans with amortized cost of approxima tely $247 million and $167 million that was based on the value of underlying collateral. Collateral-dependent C&I and CRE loans totaled $180 million and $67 million, respe ctively, at March 31, 2021. The collateral for these loans generally consists of business assets including land, buildings, equipment and financial assets. During the three months ended March 31, 2021, FHN recognized charge-offs of approximately $13 million on these loans related to reductions in estimated collateral values. Consumer HELOC and real estate installment loa ns with amortized cost based on the value of underlying real estate collateral were approximat ely $9 million and $24 million, respectively, as of March 31, 2021, and $9 million and $26 million, respectively, as of December 31, 2020. Charge-offs during the three months ended March 31, 2021 were not significant for collateral-dependent consumer loans. Troubled Debt Restructurings 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. Extensions and modifications to loans are made in accordance with internal policies and guidelines which conform to regulatory guidance. Each occurrence is unique to the borrower and is evaluated separately. A modification is classified as a TDR if the borrower is experiencing financial difficulty and it is determined that FHN has granted a concession to the borrower. 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. Many aspects of a borrower’s financial situation are assessed when determining whether they are experiencing financial difficulty. Concessions could include extension of the maturity date, reductions of the interest rate (which may make the rate lower than current market for a new loan with similar risk), reduction or forgiveness of accrued interest, or principal forgiveness. The assessments of whether a borrower is experiencing (or is likely to experience) financial difficulty, and whether a concession has been granted, are subjective in nature and management’s judgment is required when determining whether a modification is classified as a TDR. In accordance with regulatory guidance, certain loan modifications that might ordinarily have qualified as TDRs were not accounted for as TDRs and have been excluded from the disclosures below. For loan modifications that were made during the three months ended March 31, 2021 or the year ended December 31, 2020 that met the TDR relief provisions outlined in either the CARES Act, as extended by the CAA, or revised Interagency Guidance, FHN has excluded these modifications from consideration as TDRs, and has excluded loans with these qualifying modifications from designation as TDRs in the information and discussion that follows. On March 31, 2021 and December 31, 2020, FHN had $288 million and $307 million of portfolio loans classified as TDRs, respectively. For TDRs in the loan portfolio, FHN had loan loss reserves of $11 million, or 4% as of March 31, 2021, and $12 million, or 4% as of December 31, 2020. Additionally, $41 million and $42 million of loans held for sale as of March 31, 2021 and December 31, 2020, respectively, were classified as TDRs. The following tables present the end of period balance for loans modified in a TDR during the periods indicated: Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 (Dollars in millions) Number Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial, financial, and industrial: C&I 17 $ 8 $ 8 3 $ 6 $ 4 Commercial real estate: CRE 1 12 10 — — — Consumer real estate: HELOC 12 2 2 8 1 1 Real estate installment loans 9 2 2 10 2 2 Total consumer real estate 21 4 4 18 3 3 Credit card and other 13 — — 24 — — Total TDRs 52 $ 24 $ 22 45 $ 9 $ 7 The following tables present TDRs which re-defaulted during the three months ended March 31, 2021 and 2020, a nd as to which the modification occurred 12 months or less prior to the re-default. For purposes of this disclosure, FHN generally defines payment default as 30 or more days past due. Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 (Dollars in millions) Number Recorded Number Recorded Commercial, financial, and industrial: C&I 7 $ 1 — $ — Commercial real estate: CRE — — — — Consumer real estate: HELOC 1 — 4 1 Real estate installment loans 3 2 5 — Total consumer real estate 4 2 9 1 Credit card and other — — 7 — Total TDRs 11 $ 3 16 $ 1 |
Allowance for Credit Losses
Allowance for Credit Losses | 3 Months Ended |
Mar. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Allowance for Credit Losses | Allowance for Credit Losses Management's estimate of expected credit losses in the loan and lease portfolios is recorded in the ALLL and the RULC, collectively the ACL. The ALLL and the RULC are reported on the Consolidated Balance Sheets in the Allowance for loan and lease losses and in Other liabilities, respectively. Provision for credit losses related to the loans and leases portfolio and the unfunded lending commitments are reported in the Consolidated Statements of Income as Provision for credit losses. The ACL is maintained at a level management believes to be appropriate to absorb expected lifetime credit losses over the contractual life of the loan and lease portfolio and unfunded lending commitments. The determination of the ACL is based on periodic evaluation of the loan and lease portfolios and unfunded lending commitments considering a number of relevant underling factors, including key assumptions and evaluation of quantitative and qualitative information. In accordance with its accounting policy elections, FHN does not recognize a separate allowance for expected credit losses for AIR and records reversals of AIR as reductions of interest income. FHN reverses previously accrued but uncollected interest when an asset is placed on nonaccrual status. As of March 31, 2021 and December 31, 2020, FHN recognized approximately $1 million in allowance for expected credit losses on COVID-19 deferrals that do not qualify for the election which is not reflected in the table below. AIR and the related allowance for expected credit losses is included as a component of Other assets. The total amount of interest reversals from loans placed on nonaccrual status and the amount of income recognized on nonaccrual loans during the three months ended ended March 31, 2021 and 2020 were not material. Expected credit losses for unfunded commitments are estimated for periods where the commitment is not unconditionally cancellable. The measurement of expected credit losses for unfunded commitments mirrors that of loans and leases with the additional estimate of future draw rates (timing and amount). The following table provides a rollforward of the ALLL and RULC by portfolio type for the three months ended March 31, 2021 and 2020: (Dollars in millions) Commercial, Financial, and Industrial (a) Commercial Real Estate Consumer Real Estate Credit Card and Other Total Allowance for loan and lease losses: Balance as of January 1, 2021 $ 453 $ 242 $ 242 $ 26 $ 963 Charge-offs (16) (3) (1) (3) (23) Recoveries 6 2 6 1 15 Provision (provision credit) for loan and lease losses (1) (8) (25) (6) (41) Balance as of March 31, 2021 $ 442 $ 232 $ 222 $ 18 $ 914 Reserve for remaining unfunded commitments: Balance as of January 1, 2021 $ 65 $ 10 $ 10 $ — $ 85 Provision (provision credit) for remaining unfunded commitments (3) 1 (2) — (4) Balance as of March 31, 2021 $ 62 $ 11 $ 8 $ — $ 81 Allowance for loan losses: Balance as of January 1, 2020, as adjusted (b) $ 142 $ 29 $ 121 $ 15 $ 307 Charge-offs (7) (1) (2) (4) (14) Recoveries 1 1 3 1 6 Provision for loan losses 119 19 — 7 145 Balance as of March 31, 2020 $ 255 $ 48 $ 122 $ 19 $ 444 Reserve for remaining unfunded commitments: Balance as of January 1, 2020, as adjusted (b) $ 21 $ 3 $ 6 $ — $ 30 Provision for remaining unfunded commitments 6 3 — — 9 Balance as of March 31, 2020 $ 27 $ 6 $ 6 $ — $ 39 (a) C&I loans as of March 31, 2021 include $5.1 billion in PPP loans which due to the government guarantee and forgiveness provisions are considered to have no credit risk and therefore have no allowance for loan and lease losses. (b) Balance, as adjusted, reflects the adoption of ASU 2016-13 (CECL) effective January 1, 2020. The difference in the ACL as of March 31, 2021 as compared to December 31, 2020 reflects improvement in the macroeconomic outlook. In developing credit loss estimates for its loan and lease portfolios, FHN selected Moody’s baseline forecast as the primary source for its macroeconomic inputs, which included assumptions that were generally in line with Blue Chip Economic Indicators, including unemployment rates for 2021 and 2022 and GDP growth rates for the same periods, as well as assumptions around further business disruption related to COVID-19 and an unchanged target Fed funds range until mid 2023. As there can be no certainty that actual economic performance will precisely follow any specific macroeconomic forecast, FHN also evaluated other macroeconomic forecasts provided by Moody’s and adjusted the modeled outputs through a qualitative adjustment to account for uncertainties inherent in the macroeconomic forecast process. Additionally, where macroeconomic forecast variables used in the models did not take into effect the impact of federal stimulus and bank-supported payment deferral and forbearance programs on the timing of grade migration and recognition of loss content, management adjusted model outputs qualitatively to account for this assistance. During the year ended December 31, 2020 and the three months ended March 31, 2021, FHN also considered stressed loan portfolios or industries that are most exposed to the effects of the COVID-19 pandemic and added qualitative adjustments, where needed, to account for the risks not captured in modeled results. Management also made qualitative adjustments to reflect estimated recoveries based on a review of prior charge off and recovery levels, for default risk associated with large balances with individual borrowers, for estimated loss amounts not reflected in historical factors due to specific portfolio risk, and for instances where limited data for acquired loans is considered to affect modeled results. |
Mortgage Banking Activity
Mortgage Banking Activity | 3 Months Ended |
Mar. 31, 2021 | |
Mortgage Banking [Abstract] | |
Mortgage Banking Activity | Mortgage Banking Activity On July 1, 2020, as part of the IBKC merger, FHN obtained IBKC's mortgage banking operations which includes origination and servicing of residential first lien mortgages that conform to standards established by GSEs that are major investors in U.S. home mortgages, but can also consist of junior lien loans secured by residential property. These loans are primarily sold to private companies that are unaffiliated with the GSEs on a servicing-released basis. Gains and losses on these mortgage loans are included in Mortgage banking and title income on the Consolidated Statements of Income. Prior to the merger, FHN’s mortgage banking operations were not significant; however, at March 31, 2021, FHN had approximately $53 million of loans that remained from pre-2009 Mortgage Business operations. Activity related to the pre-2009 mortgage loans was primarily limited to payments and write-offs in 2020 and 2021, with no new originations or loan sales, and only an insignificant amount of repurchases. These loans are excluded from the disclosure below. The following table summarizes activity relating to residential mortgage loans held for sale as of the three months ended March 31, 2021 and the year ended December 31, 2020. (Dollars in millions) March 31, 2021 December 31, 2020 Balance at beginning of period $ 409 $ 4 Acquired — 320 Originations and purchases 446 2,499 Sales, net of gains (421) (2,405) Mortgage loans transferred from (to) held for investment 3 (9) Balance at end of period $ 437 $ 409 Mortgage Servicing Rights Effective with the IBKC merger, FHN made an election to record mortgage servicing rights at the lower of cost or market value and amortize over the remaining servicing life of the loans, with consideration given to prepayment assumptions. Mortgage servicing rights are included in Other assets on the Consolidated Balance Sheets. Mortgage servicing rights had the following carrying values as of the periods indicated. March 31, 2021 (Dollars in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Mortgage servicing rights $ 31 $ (4) $ 27 December 31, 2020 (Dollars in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Mortgage servicing rights $ 28 $ (3) $ 25 In addition, there was an insignificant amount of non-mortgage and commercial servicing rights as of March 31, 2021 and December 31, 2020. Total mortgage servicing fees included in Mortgage banking and title income were $1 million for the three months ended March 31, 2021, and were insignificant for the three months ended March 31, 2020. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill On July 1, 2020, FHN completed its merger-of-equals transaction with IBKC. In connection with the merger, FHN recorded a $534 million purchase accounting gain, based on preliminary fair value estimates. On July 17, 2020, FHN completed its purchase of 30 branches from Truist Bank. In relation to the acquisition, FHN recorded $78 million in goodwill, based on fair value estimates. See Note 2 - Acquisitions and Divestitures for additional information regarding these transactions. FHN performed the required annual goodwill impairment test as of October 1, 2020. The annual impairment test did not indicate impairment in any of FHN’s reporting units as of the testing date. Following the testing date, management evaluated the events and circumstances that could indicate that goodwill might be impaired and concluded that a subsequent interim test was not necessary. As further discussed in Note 13 - Business Segment Information, FHN reorganized its management reporting structure during the fourth quarter of 2020 and, accordingly, its segment reporting structure and goodwill reporting units. In connection with the reorganization, management reallocated goodwill to the new reporting units using a relative fair value approach. Accounting estimates and assumptions were made about FHN’s future performance and cash flows, as well as other prevailing market factors (e.g., interest rates, economic trends, etc.) when determining fair value as part of the goodwill impairment test. While management used the best information available to estimate future performance for each reporting unit, future adjustments to management’s projections may be necessary if conditions differ substantially from the assumptions used in making the estimates. The following is a summary of goodwill by reportable segment included in the Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020. (Dollars in millions) Regional Specialty Banking Total December 31, 2019 $ 802 $ 631 $ 1,433 Additions 78 — 78 December 31, 2020 $ 880 $ 631 $ 1,511 December 31, 2020 $ 880 $ 631 $ 1,511 Additions and adjustments — — — March 31, 2021 $ 880 $ 631 $ 1,511 Other intangible assets The following table, which excludes fully amortized intangibles, presents other intangible assets included in the Consolidated Balance Sheets: March 31, 2021 December 31, 2020 (Dollars in millions) Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Core deposit intangibles $ 371 $ (93) $ 278 $ 371 $ (81) $ 290 Customer relationships 37 (9) 28 37 (8) 29 Other (a) 41 (8) 33 41 (6) 35 Total $ 449 $ (110) $ 339 $ 449 $ (95) $ 354 (a) Includes noncompete covenants and purchased credit card intangible assets. Also includes title plant intangible assets and state banking licenses which are not subject to amortization. |
Preferred Stock
Preferred Stock | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Preferred Stock | Preferred Stock The following table presents a summary of FHN's non-cumulative perpetual preferred stock: (Dollars in millions) March 31, 2021 December 31, 2020 Issuance Date Earliest Redemption Date (a) Annual Dividend Rate Dividend Payments Shares Outstanding Liquidation Amount Carrying Amount Carrying Amount Series A 1/31/2013 4/10/2018 6.200 % Quarterly 1,000 $ 100 $ 96 $ 96 Series B 7/2/2020 8/1/2025 6.625 % (b) Semi-annually 8,000 80 77 77 Series C 7/2/2020 5/1/2026 6.600 % (c) Quarterly 5,750 58 59 59 Series D 7/2/2020 5/1/2024 6.100 % (d) Semi-annually 10,000 100 93 93 Series E 5/28/2020 10/10/2025 6.500 % Quarterly 1,500 150 145 145 26,250 $ 488 $ 470 $ 470 (a) Denotes earliest optional redemption date. Earlier redemption is possible, at FHN's election, if certain regulatory capital events occur. (b) Fixed dividend rate will reset on August 1, 2025 to three-month LIBOR plus 4.262%. (c) Fixed dividend rate will reset on May 1, 2026 to three-month LIBOR plus 4.920%. (d) Fixed dividend rate will reset on May 1, 2024 to three-month LIBOR plus 3.859%. Subsidiary Preferred Stock First Horizon Bank has issued 300,000 shares of Class A Non-Cumulative Perpetual Preferred Stock (Class A Preferred Stock) with a liquidation preference of $1,000 per share. Dividends on the Class A Preferred Stock, if declared, accrue and are payable each quarter, in arrears, at a floating rate equal to the greater of the three month LIBOR plus 0.85% or 3.75% per annum. These securities qualify fully as Tier 1 capital for First Horizon Bank, while for FHN they qualify partially as Tier 1 capital and partially as Tier 2 capital. On March 31, 2021 and December 31, 2020, $295 million of Class A Preferred Stock was recognized as Noncontrolling interest on the Consolidated Balance Sheets. |
Components of Other Comprehensi
Components of Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2021 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of Other Comprehensive Income (Loss) | Components of Other Comprehensive Income (Loss) The following table provides the changes in accumulated other comprehensive income (loss) by component, net of tax, for the three months ended March 31, 2021 and 2020: (Dollars in millions) Securities AFS Cash Flow Pension and Total Balance as of January 1, 2021 $ 108 $ 12 $ (260) $ (140) Net unrealized gains (losses) (103) (3) 2 (104) Amounts reclassified from AOCI — 1 2 3 Other comprehensive income (loss) (103) (2) 4 (101) Balance as of March 31, 2021 $ 5 $ 10 $ (256) $ (241) (Dollars in millions) Securities AFS Cash Flow Pension and Total Balance as of January 1, 2020 $ 31 $ 3 $ (273) $ (239) Net unrealized gains (losses) 89 13 — 102 Amounts reclassified from AOCI — — 2 2 Other comprehensive income (loss) 89 13 2 104 Balance as of March 31, 2020 $ 120 $ 16 $ (271) $ (135) Reclassifications from AOCI, and related tax effects, were as follows: (Dollars in millions) Three Months Ended Details about AOCI 2021 2020 Affected line item in the statement where net income is presented Cash flow hedges: Realized (gains) losses on cash flow hedges $ 2 $ — Interest and fees on loans and leases Tax expense (benefit) (1) — Income tax expense 1 — Pension and Postretirement Plans: Amortization of prior service cost and net actuarial (gain) loss 4 3 All other expense Tax expense (benefit) (2) (1) Income tax expense 2 2 Total reclassification from AOCI $ 3 $ 2 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The computations of basic and diluted earnings per common share were as follows: Three Months Ended (Dollars in millions, except per share data; shares in thousands) 2021 2020 Net income $ 236 $ 16 Net income attributable to noncontrolling interest 3 3 Net income attributable to controlling interest 233 13 Preferred stock dividends 8 1 Net income available to common shareholders 225 12 Weighted average common shares outstanding—basic 552,249 311,597 Effect of dilutive securities 5,283 1,573 Weighted average common shares outstanding—diluted 557,532 313,170 Basic earnings per common share $ 0.41 $ 0.04 Diluted earnings per common share $ 0.40 $ 0.04 The following table presents outstanding options and other equity awards that were excluded from the calculation of diluted earnings per share because they were either anti-dilutive (the exercise price was higher than the weighted-average market price for the period) or the performance conditions have not been met: Three Months Ended (Shares in thousands) 2021 2020 Stock options excluded from the calculation of diluted EPS 3,827 3,031 Weighted average exercise price of stock options excluded from the calculation of diluted EPS $ 18.11 $ 18.73 Other equity awards excluded from the calculation of diluted EPS 2,784 4,264 |
Contingencies And Other Disclos
Contingencies And Other Disclosures | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Other Disclosures | Contingencies and Other Disclosures CONTINGENCIES Contingent Liabilities Overview Contingent liabilities arise in the ordinary course of business. Often they are related to lawsuits, arbitration, mediation, and other forms of litigation. Various litigation matters currently are threatened or pending against FHN and its subsidiaries. Also, FHN at times receives requests for information, subpoenas, or other inquiries from federal, state, and local regulators, from other government authorities, and from other parties concerning various matters relating to FHN’s current or former businesses. Certain matters of that sort are pending at most times, and FHN generally cooperates when those matters arise. Pending and threatened litigation matters sometimes are settled by the parties, and sometimes pending matters are resolved in court or before an arbitrator, or are withdrawn. Regardless of the manner of resolution, frequently the most significant changes in status of a matter occur over a short time period, often following a lengthy period of little substantive activity. In view of the inherent difficulty of predicting the outcome of these matters, particularly where the claimants seek very large or indeterminate damages, or where the cases present novel legal theories or involve a large number of parties, or where claims or other actions may be possible but have not been brought, FHN cannot reasonably determine what the eventual outcome of the matters will be, what the timing of the ultimate resolution of these matters may be, or what the eventual loss or impact related to each matter may be. FHN establishes a loss contingency liability for a litigation matter when loss is both probable and reasonably estimable as prescribed by applicable financial accounting guidance. If loss for a matter is probable and a range of possible loss outcomes is the best estimate available, accounting guidance requires a liability to be established at the low end of the range. Based on current knowledge, and after consultation with counsel, management is of the opinion that loss contingencies related to threatened or pending litigation matters should not have a material adverse effect on the consolidated financial condition of FHN, but may be material to FHN’s operating results for any particular reporting period depending, in part, on the results from that period. Material Loss Contingency Matters Summary As used in this Note, except for matters that are reported as having been substantially settled or otherwise substantially resolved, FHN's “material loss contingency matters” generally fall into at least one of the following categories: (i) FHN has determined material loss to be probable and has established a material loss liability in accordance with applicable financial accounting guidance; (ii) FHN has determined material loss to be probable but is not reasonably able to estimate an amount or range of material loss liability; or (iii) FHN has determined that material loss is not probable but is reasonably possible, and the amount or range of that reasonably possible material loss is estimable. As defined in applicable accounting guidance, loss is reasonably possible if there is more than a remote chance of a material loss outcome for FHN. FHN provides contingencies note disclosures for certain pending or threatened litigation matters each quarter, including all matters mentioned in categories (i) or (ii) and, occasionally, certain matters mentioned in category (iii). In addition, in this Note, certain other matters, or groups of matters, are discussed relating to FHN’s pre-2009 mortgage origination and servicing businesses. In all litigation matters discussed in this Note, unless settled or otherwise resolved, FHN believes it has meritorious defenses and intends to pursue those defenses vigorously. FHN reassesses the liability for litigation matters each quarter as the matters progress. At March 31, 2021, the aggregate amount of liabilities established for all such loss contingency matters was $1 million. These liabilities are separate from those discussed under the heading “Mortgage Loan Repurchase and Foreclosure Liability” below. In each material loss contingency matter, except as otherwise noted, there is more than a remote chance that any of the following outcomes will occur: the plaintiff will substantially prevail; the defense will substantially prevail; the plaintiff will prevail in part; or the matter will be settled by the parties. At March 31, 2021, FHN estimates that for all material loss contingency matters, estimable reasonably possible losses in future periods in excess of currently established liabilities could aggregate in a range from zero to less than $1 million. As a result of the general uncertainties discussed above and the specific uncertainties discussed for each matter mentioned below, it is possible that the ultimate future loss experienced by FHN for any particular matter may materially exceed the amount, if any, of currently established liability for that matter. Material Matters A former shareholder of CBF has filed a putative class action suit, Searles v. DeMartini et al , No. 2020-0136 (Del. Chancery), against certain former directors, officers, and shareholders of CBF, alleging, among other things, that defendants breached certain fiduciary duties in connection with CBF's merger with FHN in 2017. Plaintiff claims unspecified damages related to the merger consideration and opportunity loss. FHN is unable to estimate an RPL range for this matter due to significant uncertainties regarding: whether a class will be certified and, if so, the composition of the class; the amount of potential damages that might be awarded, if any; of any such damages amount, the amount that FHN would be obliged to indemnify; whether applicable insurance will be sufficient to cover FHN's exposure; and the outcome of discovery. Exposures from pre-2009 Mortgage Business FHN is contending with indemnification claims related to "other whole loans sold," which were mortgage loans originated by FHN before 2009 and sold outside of an FHN securitization. These claims generally assert that FHN-originated loans contributed to losses in connection with mortgage loans securitized by the buyer of the loans. The claims generally do not include specific deficiencies for specific loans sold by FHN. Instead, the claims generally assert that FHN is liable for a share of the claimant's loss estimated by assessing the totality of the other whole loans sold by FHN to claimant in relation to the totality of the larger number of loans securitized by claimant. FHN is unable to estimate an RPL range for these matters due to significant uncertainties regarding: the number of, and the facts underlying, the loan originations which claimants assert are indemnifiable; the applicability of FHN’s contractual indemnity covenants to those facts and originations; and, in those cases where an indemnity claim may be supported, whether any legal defenses, counterclaims, other counter-positions, or third-party claims might eliminate or reduce claims against FHN or their impact on FHN. FHN also has indemnification claims related to servicing obligations. The most significant is from Nationstar Mortgage LLC, currently doing business as “Mr. Cooper.” Nationstar was the purchaser of FHN’s mortgage servicing obligations and assets in 2013 and 2014 and, was FHN’s subservicer. Nationstar asserts several categories of indemnity obligations in connection with mortgage loans under the subservicing arrangement and under the purchase transaction. This matter currently is not in litigation, but litigation in the future is possible. FHN is unable to estimate an RPL range for this matter due to significant uncertainties regarding: the exact nature of each of Nationstar’s claims and its position in respect of each; the number of, and the facts underlying, the claimed instances of indemnifiable events; the applicability of FHN’s contractual indemnity covenants to those facts and events; and, in those cases where the facts and events might support an indemnity claim, whether any legal defenses, counterclaims, other counter-positions, or third-party claims might eliminate or reduce claims against FHN or their impact on FHN. FHN has additional potential exposures related to its pre-2009 mortgage businesses. A few of those matters have become litigation which FHN currently estimates are immaterial, some are non-litigation claims or threats, some are mere subpoenas or other requests for information, and in some areas FHN has no indication of any active or threatened dispute. Some of those matters might eventually result in settlements, and some might eventually result in adverse litigation outcomes, but none are included in the material loss contingency liabilities mentioned above or in the RPL range mentioned above.. Mortgage Loan Repurchase and Foreclosure Liability FHN’s repurchase and foreclosure liability, primarily related to its pre-2009 mortgage businesses, is comprised of accruals to cover estimated loss content in the active pipeline (consisting of mortgage loan repurchase, make-whole, foreclosure/servicing demands and certain related exposures), estimated future inflows, and estimated loss content related to certain known claims not currently included in the active pipeline. FHN compares the estimated probable incurred losses determined under the applicable loss estimation approaches for the respective periods with current reserve levels. Changes in the estimated required liability levels are recorded as necessary through the repurchase and foreclosure provision. Based on currently available information and experience to date, FHN has evaluated its loan repurchase, make-whole, foreclosure, and certain related exposures and has accrued for losses of $16 million as of March 31, 2021 and December 31, 2020. Accrued liabilities for FHN’s estimate of these obligations are reflected in Other liabilities on the Consolidated Balance Sheets. Charges/expense reversals to increase/decrease the liability are included within Other income on the Consolidated Statements of Income. The estimates are based upon currently available information and fact patterns that exist as of each balance sheet date and could be subject to future changes. Changes to any one of these factors could significantly impact the estimate of FHN’s liability. OTHER DISCLOSURES Indemnification Agreements and Guarantees In the ordinary course of business, FHN enters into indemnification agreements for legal proceedings against its directors and officers and standard representations and warranties for underwriting agreements, merger and acquisition agreements, loan sales, contractual commitments, and various other business transactions or arrangements. The extent of FHN’s obligations under these agreements depends upon the occurrence of future events; therefore, it is not possible to estimate a maximum potential amount of payouts that could be required by such agreements. |
Retirement Plans
Retirement Plans | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits, Description [Abstract] | |
Retirement Plans | Retirement Plans FHN sponsors a noncontributory, qualified defined benefit pension plan to employees hired or re-hired on or before September 1, 2007. Pension benefits are based on years of service, average compensation near retirement or other termination, and estimated social security benefits at age 65. Benefits under the plan are “frozen” so that years of service and compensation changes after 2012 do not affect the benefit owed. Minimum contributions are based upon actuarially determined amounts necessary to fund the total benefit obligation. Decisions to contribute to the plan are based upon pension funding requirements under the Pension Protection Act, the maximum amount deductible under the Internal Revenue Code, the actual performance of plan assets, and trends in the regulatory environment. FHN made no contributions to the qualified pension plan in 2020. Management does not currently anticipate that FHN will make a contribution to the qualified pension plan for the remainder of 2021. FHN also maintains non-qualified plans including a supplemental retirement plan that covers certain employees whose benefits under the qualified pension plan have been limited by tax rules. These other non-qualified plans are unfunded, and contributions to these plans cover all benefits paid under the non-qualified plans. Payments made under the non-qualified plans were $5 million for 2020. FHN anticipates making benefit payments under the non-qualified plans of $5 million in 2021. Service cost is included in Personnel expense in the Consolidated Statements of Income. All other components of net periodic benefit cost are included in Other expense. For more information on FHN's pension plan and other postretirement benefit plans, see Note 18 - Pension, Savings and Other Employee Benefits in FHN's 2020 Annual Report on Form 10-K. The components of net periodic benefit cost for the three months ended March 31 were as follows: Pension Benefits (Dollars in millions) 2021 2020 Components of net periodic benefit cost Interest cost $ 4 $ 6 Expected return on plan assets (4) (6) Amortization of unrecognized: Actuarial (gain) loss 2 3 Other 2 — Net periodic benefit cost $ 4 $ 3 |
Business Segment Information
Business Segment Information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Business Segment Information | Business Segment Information During the fourth quarter of 2020, FHN reorganized its internal management structure and, accordingly, its segment reporting structure. Historically, FHN's reportable business segments were Regional Banking, Fixed Income, Corporate, and Non-strategic. On July 1, 2020, FHN and IBKC closed their merger of equals transaction. This transaction prompted organizational changes to better integrate and execute the combined Company's strategic priorities across all lines of businesses. As a result, FHN revised its reportable segments as described below. Prior period segment information has been reclassified to conform to the current period presentation. FHN is composed of the following operating segments: • Regional Banking segment offers financial products and services, including traditional lending and deposit taking, to consumer and commercial clients primarily in the southern U.S. and other selected markets. Regional Banking also provides investment, wealth management, financial planning, trust and asset management services for consumer clients. • Specialty Banking segment consists of lines of business that deliver product offerings and services with specialized industry knowledge. Specialty Banking’s lines of business include asset-based lending, mortgage warehouse lending, commercial real estate, franchise finance, correspondent banking, equipment finance, mortgage, and title insurance. In addition to traditional lending and deposit taking, Specialty Banking also delivers treasury management solutions, loan syndications, international banking and SBA lending. Additionally, Specialty Banking 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, properties, technology, credit risk and bank operations are allocated to the activities of Regional Banking, Specialty Banking and Corporate. Additionally, the Corporate segment includes centralized management of capital and funding to support the business activities of the company including management of wholesale 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. 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. The following tables reflect financial information for each reportable business segment for the three months ended March 31 2021 and 2020: Three Months Ended March 31, 2021 (Dollars in millions) Regional Banking Specialty Banking Corporate Consolidated Net interest income (expense) $ 426 $ 159 $ (77) $ 508 Provision for credit losses (32) (7) (6) (45) Noninterest income 100 185 13 298 Noninterest expense (a) 272 154 118 544 Income (loss) before income taxes 286 197 (176) 307 Income tax expense (benefit) 66 47 (42) 71 Net income (loss) $ 220 $ 150 $ (134) $ 236 Average assets $ 42,371 $ 21,503 $ 21,527 $ 85,401 (a) Includes $33 million in asset impairments related to IBKC merger integration efforts in the Corporate segment. Three Months Ended March 31, 2020 (Dollars in millions) Regional Banking Specialty Banking Corporate Consolidated Net interest income (expense) $ 194 $ 109 $ — $ 303 Provision for credit losses 98 54 2 154 Noninterest income 73 104 (3) 174 Noninterest expense 173 111 18 302 Income (loss) before income taxes (4) 48 (23) 21 Income tax expense (benefit) (2) 11 (4) 5 Net income (loss) $ (2) $ 37 $ (19) $ 16 Average assets $ 19,044 $ 16,890 $ 7,618 $ 43,552 Certain previously reported amounts have been reclassified to agree with current presentation. The following tables reflect a disaggregation of FHN’s noninterest income by major product line and reportable segment for the three months ended March 31, 2021 and 2020: Three months ended March 31, 2021 (Dollars in millions) Regional Banking Specialty Banking Corporate Consolidated Noninterest income: Fixed income (a) $ 1 $ 125 $ — $ 126 Mortgage banking and title income — 52 1 53 Deposit transactions and cash management 38 3 1 42 Brokerage, management fees and commissions 20 — — 20 Trust services and investment management 12 — — 12 Bankcard income 11 — — 11 Other income (b) 18 5 11 34 Total noninterest income $ 100 $ 185 $ 13 $ 298 (a) Includes $10 million of underwriting, portfolio advisory, and other noninterest income in scope of ASC 606, "Revenue From Contracts With Customers." (b) Includes other service charges, ATM and interchange fees, electronic banking fees, and insurance commissions in scope of ASC 606. Three months ended March 31, 2020 (Dollars in millions) Regional Banking Specialty Banking Corporate Consolidated Noninterest income: Fixed income (a) $ — $ 96 $ — $ 96 Mortgage banking and title income — 2 — 2 Deposit transactions and cash management 26 3 1 30 Brokerage, management fees and commissions 16 — — 16 Trust services and investment management 7 — — 7 Bankcard income 6 1 — 7 Other income (b) 18 2 (4) 16 Total noninterest income $ 73 $ 104 $ (3) $ 174 Certain previously reported amounts have been reclassified to agree with current presentation. (a) Includes $9 million of underwriting, portfolio advisory, and other noninterest income in scope of ASC 606, "Revenue From Contracts With Customers." (b) Includes other service charges, ATM and interchange fees, electronic banking fees, and insurance commissions in scope of ASC 606. |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2021 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Variable Interest Entities FHN makes equity investments in various entities that are considered VIEs, as defined by GAAP. A VIE typically does not have sufficient equity at risk to finance its activities without additional subordinated financial support from other parties. The Company’s variable interest arises from contractual, ownership or other monetary interests in the entity, which change with fluctuations in the fair value of the entity's net assets. FHN consolidates a VIE if FHN is the primary beneficiary of the entity. FHN is the primary beneficiary of a VIE if FHN's variable interest provides it with the power to direct the activities that most significantly impact the VIE and the right to receive benefits (or the obligation to absorb losses) that could potentially be significant to the VIE. To determine whether or not a variable interest held could potentially be significant to the VIE, FHN considers both qualitative and quantitative factors regarding the nature, size and form of its involvement with the VIE. FHN assesses whether or not it is the primary beneficiary of a VIE on an ongoing basis. Consolidated Variable Interest Entities FHN has established certain rabbi trusts related to deferred compensation plans offered to its employees. FHN contributes employee cash compensation deferrals to the trusts and directs the underlying investments made by the trusts. The assets of these trusts are available to FHN’s creditors only in the event that FHN becomes insolvent. These trusts are considered VIEs as there is no equity at risk in the trusts since FHN provided the equity interest to its employees in exchange for services rendered. FHN is considered the primary beneficiary of the rabbi trusts as it has the power to direct the activities that most significantly impact the economic performance of the rabbi trusts through its ability to direct the underlying investments made by the trusts. Additionally, FHN could potentially receive benefits or absorb losses that are significant to the trusts due to its right to receive any asset values in excess of liability payoffs and its obligation to fund any liabilities to employees that are in excess of a rabbi trust’s assets. 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, 2021 and December 31, 2020: (Dollars in millions) March 31, 2021 December 31, 2020 Assets: Other assets $ 200 $ 195 Total assets $ 200 $ 195 Liabilities: Other liabilities $ 173 $ 165 Total liabilities $ 173 $ 165 Nonconsolidated Variable Interest Entities Low Income Housing Tax Credit Partnerships. Through designated wholly-owned subsidiaries, First Horizon Bank, makes equity investments as a limited partner in various partnerships that sponsor affordable housing projects utilizing the LIHTC. The purpose of these investments is to achieve a satisfactory return on capital and to support FHN’s community reinvestment initiatives. LIHTC partnerships are managed by unrelated general partners that have the power to direct the activities which most significantly affect the performance of the partnerships. FHN is therefore not the primary beneficiary of any LIHTC partnerships. Accordingly, FHN does not consolidate these VIEs and accounts for these investments in other assets on the Consolidated Balance Sheets. FHN accounts for all qualifying LIHTC investments under the proportional amortization method. Under this method an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance as a component of income tax expense. LIHTC investments that do not qualify for the proportional amortization method are accounted for using the equity method. Expenses associated with these investments were not material for the three months ended March 31, 2021 and 2020. The following table summarizes the impact to Income tax expense on the Consolidated Statements of Income for the three months ended March 31, 2021 and 2020 for LIHTC investments accounted for under the proportional amortization method. Three Months Ended (Dollars in millions) 2021 2020 Income tax expense (benefit): Amortization of qualifying LIHTC investments $ 9 $ 6 Low income housing tax credits (9) (5) Other tax benefits related to qualifying LIHTC investments (3) (3) Other Tax Credit Investments. Through designated subsidiaries, First Horizon Bank periodically makes equity investments as a non-managing member in various LLCs that sponsor community development projects utilizing the NMTC. First Horizon Bank also makes equity investments as a limited partner or non-managing member in entities that receive tax credits from solar and historic tax credits. The purpose of these investments is to achieve a satisfactory return on capital and to support FHN’s community reinvestment initiatives. These entities are considered VIEs as First Horizon Bank's subsidiaries represent the holders of the equity investment at risk, but do not have the ability to direct the activities that most significantly affect the performance of the entities. Small Issuer Trust Preferred Holdings . First Horizon Bank holds variable interests in trusts which have issued mandatorily redeemable preferred capital securities (“trust preferreds”) for smaller banking and insurance enterprises. First Horizon Bank has no voting rights for the trusts’ activities. The trusts’ only assets are junior subordinated debentures of the issuing enterprises. The creditors of the trusts hold no recourse to the assets of First Horizon Bank. Since First Horizon Bank is solely a holder of the trusts’ securities, it has no rights which would give it the power to direct the activities that most significantly impact the trusts’ economic performance and thus it is not considered the primary beneficiary of the trusts. First Horizon Bank has no contractual requirements to provide financial support to the trusts. On-Balance Sheet Trust Preferred Securitization. In 2007, First Horizon Bank executed a securitization of certain small issuer trust preferreds for which the underlying trust meets the definition of a VIE as the holders of the equity investment at risk do not have the power through voting rights, or similar rights, to direct the activities that most significantly impact the entity’s economic performance. Since First Horizon Bank did not retain servicing or other decision making rights, First Horizon Bank is not the primary beneficiary as it does not have the power to direct the activities that most significantly impact the trust’s economic performance. Accordingly, First Horizon Bank has accounted for the funds received through the securitization as a term borrowing in its Consolidated Balance Sheets. First Horizon Bank has no contractual requirements to provide financial support to the trust. Holdings in Agency Mortgage-Backed Securities. FHN holds securities issued by various Agency securitization trusts. Based on their restrictive nature, the trusts meet the definition of a VIE since the holders of the equity investments at risk do not have the power through voting rights, or similar rights, to direct the activities that most significantly impact the entities’ economic performance. FHN could potentially receive benefits or absorb losses that are significant to the trusts based on the nature of the trusts’ activities and the size of FHN’s holdings. However, FHN is solely a holder of the trusts’ securities and does not have the power to direct the activities that most significantly impact the trusts’ economic performance, and is not considered the primary beneficiary of the trusts. FHN has no contractual requirements to provide financial support to the trusts. Commercial Loan Troubled Debt Restructurings. For certain troubled commercial loans, First Horizon Bank restructures the terms of the borrower’s debt in an effort to increase the probability of receipt of amounts contractually due. Following a troubled debt restructuring, the borrower entity typically meets the definition of a VIE as the initial determination of whether an entity is a VIE must be reconsidered as events have proven that the entity’s equity is not sufficient to permit it to finance its activities without additional subordinated financial support or a restructuring of the terms of its financing. As First Horizon Bank does not have the power to direct the activities that most significantly impact such troubled commercial borrowers’ operations, it is not considered the primary beneficiary even in situations where, based on the size of the financing provided, First Horizon Bank is exposed to potentially significant benefits and losses of the borrowing entity. First Horizon Bank has no contractual requirements to provide financial support to the borrowing entities beyond certain funding commitments established upon restructuring of the terms of the debt that allows for preparation of the underlying collateral for sale. Proprietary Trust Preferred Issuances . In conjunction with its acquisitions, FHN acquired junior subordinated debt underlying multiple issuances of trust preferred debt. All of the trusts are considered VIEs because the ownership interests from the capital contributions to these trusts are not considered “at risk” in evaluating whether the holders of the equity investments at risk in the trusts have the ability to direct the activities that most significantly impact the entities’ economic performance. Thus, FHN cannot be the trusts’ primary beneficiary because its ownership interests in the trusts are not considered variable interests as they are not considered “at risk”. Consequently, none of the trusts are consolidated by FHN. The following table summarizes FHN’s nonconsolidated VIEs as of March 31, 2021: (Dollars in millions) Maximum Liability Classification Type Low income housing partnerships $ 345 $ 126 (a) Other tax credit investments (b) 68 42 Other assets Small issuer trust preferred holdings (c) 210 — Loans and leases On-balance sheet trust preferred securitization 32 83 (d) Holdings of agency mortgage-backed securities (c) 7,053 — (e) Commercial loan troubled debt restructurings (f) 169 — Loans and leases Proprietary trust preferred issuances (g) — 287 Term borrowings (a) Maximum loss exposure represents $219 million of current investments and $126 million of accrued contractual funding commitments. Accrued funding commitments represent unconditional contractual obligations for future funding events and are also recognized in Other liabilities. FHN currently expects to be required to fund these accrued commitments by the end of 2024. (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 $112 million classified as Loans and leases and $2 million classified as Trading securities which are offset by $83 million classified as Term borrowings. (e) Includes $0.6 billion classified as Trading securities and $6.5 billion classified as Securities available for sale. (f) Maximum loss exposure represents $166 million of current receivables and $3 million of contractual funding commitments on loans related to commercial borrowers involved in a troubled debt restructuring. (g) No exposure to loss due to nature of FHN's involvement. The following table summarizes FHN’s nonconsolidated VIEs as of December 31, 2020: (Dollars in millions) Maximum Liability Classification Type Low income housing partnerships $ 338 $ 132 (a) Other tax credit investments (b) 64 42 Other assets Small issuer trust preferred holdings (c) 210 — Loans and leases On-balance sheet trust preferred securitization 32 82 (d) Holdings of agency mortgage-backed securities (c) 7,063 — (e) Commercial loan troubled debt restructurings (f) 186 — Loans and leases Proprietary trust preferred issuances (g) — 287 Term borrowings (a) Maximum loss exposure represents $206 million of current investments and $132 million of accrued contractual funding commitments. Accrued funding commitments represent unconditional contractual obligations for future funding events and are also recognized in Other liabilities. FHN currently expects to be required to fund these accrued commitments by the end of 2024. (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 $112 million classified as Loans and leases and $2 million classified as Trading securities which are offset by $82 million classified as Term borrowings. (e) Includes $0.8 billion classified as Trading securities and $6.2 billion classified as Securities available for sale. (f) Maximum loss exposure represents $176 million of current receivables and $10 million of contractual funding commitments on loans related to commercial borrowers involved in a troubled debt restructuring. |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives In the normal course of business, FHN utilizes various financial instruments (including derivative contracts and credit-related agreements) through its fixed income and risk management operations, as part of its risk management strategy and as a means to meet clients’ needs. Derivative instruments are subject to credit and market risks in excess of the amount recorded on the balance sheet as required by GAAP. The contractual or notional amounts of these financial instruments do not necessarily represent the amount of credit or market risk. However, they can be used to measure the extent of involvement in various types of financial instruments. Controls and monitoring procedures for these instruments have been established and are routinely reevaluated. The ALCO controls, coordinates, and monitors the usage and effectiveness of these financial instruments. Credit risk represents the potential loss that may occur if a party to a transaction fails to perform according to the terms of the contract. The measure of credit exposure is the replacement cost of contracts with a positive fair value. FHN manages credit risk by entering into financial instrument transactions through national exchanges, primary dealers or approved counterparties, and by using mutual margining and master netting agreements whenever possible to limit potential exposure. FHN also maintains collateral posting requirements with certain counterparties to limit credit risk. Daily margin posted or received with central clearinghouses is considered a legal settlement of the related derivative contracts which results in a net presentation for each contract in the Consolidated Balance Sheets. Treatment of daily margin as a settlement has no effect on hedge accounting or gains/losses for the applicable derivative contracts. On March 31, 2021 and December 31, 2020, respectively, FHN had $234 million and $280 million of cash receivables and $122 million and $166 million of cash payables related to collateral posting under master netting arrangements, inclusive of collateral posted related to contracts with adjustable collateral posting thresholds and over-collateralized positions, with derivative counterparties. With exchange-traded contracts, the credit risk is limited to the clearinghouse used. For non-exchange traded instruments, credit risk may occur when there is a gain in the fair value of the financial instrument and the counterparty fails to perform according to the terms of the contract and/or when the collateral proves to be of insufficient value. See additional discussion regarding master netting agreements and collateral posting requirements later in this note under the heading “Master Netting and Similar Agreements.” Market risk represents the potential loss due to the decrease in the value of a financial instrument caused primarily by changes in interest rates or the prices of debt instruments. FHN manages market risk by establishing and monitoring limits on the types and degree of risk that may be undertaken. FHN continually measures this risk through the use of models that measure value-at-risk and earnings-at-risk. Derivative Instruments. FHN enters into various derivative contracts both to facilitate client transactions and as a risk management tool. Where contracts have been created for clients, FHN enters into upstream transactions with dealers to offset its risk exposure. Contracts with dealers that require central clearing are novated to a clearing agent who becomes FHN’s counterparty. Derivatives are also used as a risk management tool to hedge FHN’s exposure to changes in interest rates or other defined market risks. Forward contracts are over-the-counter contracts where two parties agree to purchase and sell a specific quantity of a financial instrument at a specified price, with delivery or settlement at a specified date. Futures contracts are exchange-traded contracts where two parties agree to purchase and sell a specific quantity of a financial instrument at a specified price, with delivery or settlement at a specified date. Interest rate option contracts give the purchaser the right, but not the obligation, to buy or sell a specified quantity of a financial instrument, at a specified price, during a specified period of time. Caps and floors are options that are linked to a notional principal amount and an underlying indexed interest rate. Interest rate swaps involve the exchange of interest payments at specified intervals between two parties without the exchange of any underlying principal. Swaptions are options on interest rate swaps that give the purchaser the right, but not the obligation, to enter into an interest rate swap agreement during a specified period of time. Trading Activities FHNF trades U.S. Treasury, U.S. Agency, government-guaranteed loan, mortgage-backed, corporate and municipal fixed income securities, and other securities for distribution to clients. When these securities settle on a delayed basis, they are considered forward contracts. FHNF also enters into interest rate contracts, including caps, swaps, and floors, for its clients. In addition, FHNF enters into futures and option contracts to economically hedge interest rate risk associated with a portion of its securities inventory. These transactions are measured at fair value, with changes in fair value recognized in noninterest income. Related assets and liabilities are recorded on the Consolidated Balance Sheets as derivative assets and derivative liabilities within Other assets and Other liabilities. The FHNF Risk Committee and the Credit Risk Management Committee collaborate to mitigate credit risk related to these transactions. Credit risk is controlled through credit approvals, risk control limits, and ongoing monitoring procedures. Total trading revenues were $115 million and $78 million for the three months ended March 31, 2021 and 2020, respectively. Trading revenues are inclusive of both derivative and non-derivative financial instruments, and are included in Fixed income on the Consolidated Statements of Income. The following tables summarize derivatives associated with FHNF's trading activities as of March 31, 2021 and December 31, 2020: March 31, 2021 (Dollars in millions) Notional Assets Liabilities Customer interest rate contracts $ 3,877 $ 111 $ 60 Offsetting upstream interest rate contracts 3,877 6 13 Option contracts purchased 3 — — Forwards and futures purchased 15,777 12 108 Forwards and futures sold 16,495 119 8 December 31, 2020 (Dollars in millions) Notional Assets Liabilities Customer interest rate contracts $ 3,950 $ 207 $ 7 Offsetting upstream interest rate contracts 3,950 2 17 Forwards and futures purchased 10,795 62 — Forwards and futures sold 11,633 1 65 Interest Rate Risk Management FHN’s ALCO focuses on managing market risk by controlling and limiting earnings volatility attributable to changes in interest rates. Interest rate risk exists to the extent that interest-earning assets and interest-bearing liabilities have different maturity or repricing characteristics. FHN uses derivatives, primarily swaps, that are designed to moderate the impact on earnings as interest rates change. Interest paid or received for swaps utilized by FHN to hedge the fair value of long term debt is recognized as an adjustment of the interest expense of the liabilities whose risk is being managed. FHN’s interest rate risk management policy is to use derivatives to hedge interest rate risk or market value of assets or liabilities, not to speculate. In addition, FHN has entered into certain interest rate swaps and caps as a part of a product offering to commercial clients that includes customer derivatives paired with upstream offsetting market instruments that, when completed, are designed to mitigate interest rate risk. These contracts do not qualify for hedge accounting and are measured at fair value with gains or losses included in current earnings in Noninterest expense on the Consolidated Statements of Income. FHN had designated a derivative transaction in a hedging strategy to manage interest rate risk on $500 million of senior debt prior to its maturity in December 2020. This transaction qualified for hedge accounting using the long-haul method. FHN early redeemed the $500 million senior debt in November 2020. The following tables summarize FHN’s derivatives associated with interest rate risk management activities as of March 31, 2021 and December 31, 2020: March 31, 2021 (Dollars in millions) Notional Assets Liabilities Customer Interest Rate Contracts Hedging Hedging Instruments and Hedged Items: Customer interest rate contracts $ 7,057 $ 255 $ 30 Offsetting upstream interest rate contracts 7,057 4 24 December 31, 2020 (Dollars in millions) Notional Assets Liabilities Customer Interest Rate Contracts Hedging Hedging Instruments and Hedged Items: Customer interest rate contracts $ 6,868 $ 436 $ 1 Offsetting upstream interest rate contracts 6,868 5 35 The following table summarizes gains (losses) on FHN’s derivatives associated with interest rate risk management activities for the three months ended March 31, 2021 and 2020: Three Months Ended 2021 2020 (Dollars in millions) Gains (Losses) Gains (Losses) Customer Interest Rate Contracts Hedging Hedging Instruments and Hedged Items: Customer interest rate contracts (a) $ 214 $ 196 Offsetting upstream interest rate contracts (a) (214) (196) Debt Hedging Hedging Instruments: Interest rate swaps (b) $ — $ 5 Hedged Items: Term borrowings (a) (c) — (4) (a) Gains (losses) included in Other expense within the Consolidated Statements of Income. (b) Gains (losses) included in Interest expense. (c) Represents gains and losses attributable to changes in fair value due to interest rate risk as designated in ASC 815-20 hedging relationships. Cash Flow Hedges Prior to 2021, FHN had pay floating, receive fixed interest rate swaps designed to manage its exposure to the variability in cash flows related to interest payments on debt instruments, which primarily consisted of held-to-maturity trust preferred loans. In conjunction with the IBKC merger, FHN acquired interest rate contracts (floors and collars) which have been re-designated as cash flow hedges. The debt instruments primarily consist of held-to-maturity commercial loans that have variable interest payments based on 1-month LIBOR. In a cash flow hedge, the entire change in the fair value of the interest rate swap included in the assessment of hedge effectiveness is initially recorded in OCI and is subsequently reclassified from OCI to current period earnings (interest income or interest expense) in the same period that the hedged item affects earnings. The following tables summarize FHN’s derivative activities associated with cash flow hedges as of March 31, 2021 and December 31, 2020: March 31, 2021 (Dollars in millions) Notional Assets Liabilities Cash Flow Hedges Hedging Instruments: Interest rate contracts $ 1,250 $ 27 $ — Hedged Items: Variability in cash flows related to debt instruments (primarily loans) N/A $ 1,250 N/A December 31, 2020 (Dollars in millions) Notional Assets Liabilities Cash Flow Hedges Hedging Instruments: Interest rate contracts $ 1,250 $ 32 $ — Hedged Items: Variability in cash flows related to debt instruments (primarily loans) N/A $ 1,250 N/A The following table summarizes gains (losses) on FHN’s derivatives associated with cash flow hedges for the three months ended March 31, 2021 and 2020: Three Months Ended 2021 2020 (Dollars in millions) Gains (Losses) Gains (Losses) Cash Flow Hedges Hedging Instruments: Interest rate contracts (a) $ 8 $ 17 Gain (loss) recognized in Other comprehensive income (loss) (3) 13 Gain (loss) reclassified from AOCI into Interest income 1 — (a) Approximately $25 million of pre-tax gains are expected to be reclassified into earnings in the next twelve months. Other Derivatives As part of the IBKC merger, FHN acquired mortgage banking operations that include the origination and sale of loans into the secondary market. As part of the origination of loans, FHN enters into interest rate lock commitments with borrowers. Additionally, FHN enters into forward sales contracts with buyers for delivery of loans at a future date. Both of these contracts qualify as freestanding derivatives and are recognized at fair value through earnings. The notional and fair values of these contracts are presented in the table below. Balances and activity for periods prior to the IBKC merger were not significant. March 31, 2021 (Dollars in millions) Notional Assets Liabilities Mortgage Banking Hedges Option contracts written $ 702 $ 9 $ 1 Forward contracts purchased 878 14 — December 31, 2020 (Dollars in millions) Notional Assets Liabilities Mortgage Banking Hedges Option contracts written $ 667 $ 20 $ — Forward contracts purchased 725 — 6 The following table summarizes gains (losses) on FHN's derivatives associated with mortgage banking activities for the three month period ended March 31, 2021. Three Months Ended 2021 (Dollars in millions) Gains (Losses) Mortgage Banking Hedges Option contracts written $ (11) Forward contracts purchased 23 In conjunction with the sale of its Visa Class B shares, FHN entered into derivative transactions whereby FHN will make or receive cash payments whenever the conversion ratio of the Visa Class B shares into Visa Class A shares is adjusted. As of March 31, 2021 and December 31, 2020, the derivative liabilities associated with the sales of Visa Class B shares were $20 million and $13 million, respectively. See Note 17 - Fair Value of Assets & Liabilities for discussion of the valuation inputs and processes for these Visa-related derivatives. FHN utilizes cross currency swaps and cross currency interest rate swaps to economically hedge its exposure to foreign currency risk and interest rate risk associated with non-U.S. dollar denominated loans. As of March 31, 2021 and December 31, 2020, these loans were valued at $10 million and $12 million, respectively. The balance sheet amount and the gains/losses associated with these derivatives were not significant. Related to its loan participation/syndication activities, FHN enters into risk participation agreements, under which it assumes exposure for, or receives indemnification for, borrowers’ performance on underlying interest rate derivative contracts. As of March 31, 2021 and December 31, 2020, the notional values of FHN’s risk participations were $237 million and $233 million of derivative assets and $501 million and $464 million of derivative liabilities, respectively. Assuming all underlying third party customers referenced in the swap contracts defaulted at March 31, 2021 and December 31, 2020, the exposure from these agreements would not be material based on the fair value of the underlying swaps. In conjunction with the IBKC merger, FHN obtained certain certificates of deposit with the rate of return based on an equity index which is considered an embedded derivative as a written option that must be separately recognized. The risks of the written option are offset by purchasing an option with terms that mirror the written option, which is also carried at fair value on the Company’s Consolidated Balance Sheets. As of March 31, 2021 and December 31, 2020, FHN had recognized $2 million and $1 million, respectively, of both assets and liabilities associated with these contracts. Master Netting and Similar Agreements FHN uses master netting agreements, mutual margining agreements and collateral posting requirements to minimize credit risk on derivative contracts. Master netting and similar agreements are used when counterparties have multiple derivatives contracts that allow for a “right of setoff,” meaning that a counterparty may net offsetting positions and collateral with the same counterparty under the contract to determine a net receivable or payable. The following discussion provides an overview of these arrangements which may vary due to the derivative type and market in which a derivative transaction is executed. Interest rate derivatives are subject to agreements consistent with standard agreement forms of the ISDA. Currently, all interest rate derivative contracts are entered into as over-the-counter transactions and collateral posting requirements are based on the net asset or liability position with each respective counterparty. For contracts that require central clearing, novation to a counterparty with access to a clearinghouse occurs and initial margin is posted. Cash margin received (posted) that is considered settlements for the derivative contracts is included in the respective derivative asset (liability) value. Cash margin that is considered collateral received (posted) for interest rate derivatives is recognized as a liability (asset) on FHN’s Consolidated Balance Sheets. Interest rate derivatives with clients that are smaller financial institutions typically require posting of collateral by the counterparty to FHN. This collateral is subject to a threshold with daily adjustments based upon changes in the level or fair value of the derivative position. Positions and related collateral can be netted in the event of default. Collateral pledged by a counterparty is typically cash or securities. The securities pledged as collateral are not recognized within FHN’s Consolidated Balance Sheets. Interest rate derivatives associated with lending arrangements share the collateral with the related loan(s). The derivative and loan positions may be netted in the event of default. For disclosure purposes, the entire collateral amount is allocated to the loan. Interest rate derivatives with larger financial institutions entered into prior to required central clearing typically contain provisions whereby the collateral posting thresholds under the agreements adjust based on the credit ratings of both counterparties. If the credit rating of FHN and/or First Horizon Bank is lowered, FHN could be required to post additional collateral with the counterparties. Conversely, if the credit rating of FHN and/or First Horizon Bank is increased, FHN could have collateral released and be required to post less collateral in the future. Also, if a counterparty’s credit ratings were to decrease, FHN and/or First Horizon Bank could require the posting of additional collateral; whereas if a counterparty’s credit ratings were to increase, the counterparty could require the release of excess collateral. Collateral for these arrangements is adjusted daily based on changes in the net fair value position with each counterparty. The net fair value, determined by individual counterparty, of all derivative instruments with adjustable collateral posting thresholds was $85 million of assets and $33 million of liabilities on March 31, 2021, and $200 million of assets and $5 million of liabilities on December 31, 2020. As of March 31, 2021 and December 31, 2020, FHN had received collateral of $248 million and $320 million and posted collateral of $5 million and $34 million, respectively, in the normal course of business related to these agreements. Certain agreements entered into prior to required central clearing also contain accelerated termination provisions, inclusive of the right of offset, if a counterparty’s credit rating falls below a specified level. If a counterparty’s debt rating (including FHN’s and First Horizon Bank’s) were to fall below these minimums, these provisions would be triggered, and the counterparties could terminate the agreements and require immediate settlement of all derivative contracts under the agreements. The net fair value, determined by individual counterparty, of all interest rate derivative instruments with credit-risk-related contingent accelerated termination provisions was $102 million of assets and $40 million of liabilities on March 31, 2021, and $216 million of assets and $17 million of liabilities on December 31, 2020. As of March 31, 2021 and December 31, 2020, FHN had received collateral of $265 million and $343 million and posted collateral of $10 million and $53 million, respectively, in the normal course of business related to these contracts. FHNF buys and sells various types of securities for its clients. When these securities settle on a delayed basis, they are considered forward contracts, and are generally not subject to master netting agreements. For futures and options, FHN transacts through a third party, and the transactions are subject to margin and collateral maintenance requirements. In the event of default, open positions can be offset along with the associated collateral. For this disclosure, FHN considers the impact of master netting and other similar agreements which allow FHN to settle all contracts with a single counterparty on a net basis and to offset the net derivative asset or liability position with the related securities and cash collateral. The application of the collateral cannot reduce the net derivative asset or liability position below zero, and therefore any excess collateral is not reflected in the following tables. The following table provides details of derivative assets and collateral received as presented on the Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020: Gross amounts not offset in the Balance Sheets (Dollars in millions) Gross amounts Gross amounts Net amounts of Derivative Collateral Net amount Derivative assets: March 31, 2021 Interest rate derivative contracts $ 412 $ — $ 412 $ (42) $ (232) $ 138 Forward contracts 131 — 131 (33) (5) 93 $ 543 $ — $ 543 $ (75) $ (237) $ 231 December 31, 2020 Interest rate derivative contracts $ 702 $ — $ 702 $ (7) $ (327) $ 368 Forward contracts 63 — 63 (14) (20) 29 $ 765 $ — $ 765 $ (21) $ (347) $ 397 (a) Included in Other assets on the Consolidated Balance Sheets. As of March 31, 2021 and December 31, 2020, $16 million and $4 million, respectively, of derivative assets have been excluded from these tables because they are generally not subject to master netting or similar agreements. The following table provides details of derivative liabilities and collateral pledged as presented on the Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020: Gross amounts not offset (Dollars in millions) Gross amounts Gross amounts Net amounts of Derivative Collateral Net amount Derivative liabilities: March 31, 2021 Interest rate derivative contracts $ 128 $ — $ 128 $ (42) $ (12) $ 74 Forward contracts 115 — 115 (33) (34) 48 $ 243 $ — $ 243 $ (75) $ (46) $ 122 December 31, 2020 Interest rate derivative contracts $ 60 $ — $ 60 $ (7) $ (31) $ 22 Forward contracts 65 — 65 (14) (51) — $ 125 $ — $ 125 $ (21) $ (82) $ 22 (a) Included in Other liabilities on the Consolidated Balance Sheets. As of March 31, 2021 and December 31, 2020, $21 million and $22 million, respectively, of derivative liabilities (primarily Visa-related derivatives) have been excluded from these tables because they are generally not subject to master netting or similar agreements. |
Master Netting and Similar Agre
Master Netting and Similar Agreements—Repurchase, Reverse Repurchase, and Securities Borrowing Transactions | 3 Months Ended |
Mar. 31, 2021 | |
Offsetting [Abstract] | |
Master Netting and Similar Agreements—Repurchase, Reverse Repurchase, and Securities Borrowing Transactions | Master Netting and Similar Agreements—Repurchase, Reverse Repurchase, and Securities Borrowing Transactions For repurchase, reverse repurchase and securities borrowing transactions, FHN and each counterparty have the ability to offset all open positions and related collateral in the event of default. Due to the nature of these transactions, the value of the collateral for each transaction approximates the value of the corresponding receivable or payable. For repurchase agreements through FHN’s fixed income business (securities purchased under agreements to resell and securities sold under agreements to repurchase), transactions are collateralized by securities and/or government guaranteed loans which are delivered on the settlement date and are maintained throughout the term of the transaction. For FHN’s repurchase agreements through banking activities (securities sold under agreements to repurchase), securities are typically pledged at settlement and not released until maturity. For asset positions, the collateral is not included on FHN’s Consolidated Balance Sheets. For liability positions, securities collateral pledged by FHN is generally represented within FHN’s trading or available-for-sale securities portfolios. For this disclosure, FHN considers the impact of master netting and other similar agreements that allow FHN to settle all contracts with a single counterparty on a net basis and to offset the net asset or liability position with the related securities collateral. The application of the collateral cannot reduce the net asset or liability position below zero, and therefore any excess collateral is not reflected in the tables below. Securities purchased under agreements to resell is included in Federal funds sold and securities purchased under agreements to resell in the Consolidated Balance Sheets. Securities sold under agreements to repurchase is included in Short-term borrowings. The following table provides details of securities purchased under agreements to resell and collateral pledged by counterparties as of March 31, 2021 and December 31, 2020: Gross amounts not offset in the (Dollars in millions) Gross amounts Gross amounts Net amounts of Offsetting Securities collateral Net amount Securities purchased under agreements to resell: March 31, 2021 $ 463 $ — $ 463 $ — $ (461) $ 2 December 31, 2020 380 — 380 — (379) 1 The following table provides details of securities sold under agreements to repurchase and collateral pledged by FHN as of March 31, 2021 and December 31, 2020: Gross amounts not offset in the (Dollars in millions) Gross amounts Gross amounts Net amounts of Offsetting Securities/ Net amount Securities sold under agreements to repurchase: March 31, 2021 $ 1,098 $ — $ 1,098 $ — $ (1,098) $ — December 31, 2020 1,187 — 1,187 — (1,187) — Due to the short duration of securities sold under agreements to repurchase and the nature of collateral involved, the risks associated with these transactions are considered minimal. The following tables provide details, by collateral type, of the remaining contractual maturity of securities sold under agreements to repurchase as of March 31, 2021 and December 31, 2020: March 31, 2021 (Dollars in millions) Overnight and Up to 30 Days Total Securities sold under agreements to repurchase: U.S. treasuries $ 294 $ — $ 294 Government agency issued MBS 584 — 584 Government agency issued CMO 13 — 13 Other U.S. government agencies 82 — 82 Government guaranteed loans (SBA and USDA) 125 — 125 Total securities sold under agreements to repurchase $ 1,098 $ — $ 1,098 December 31, 2020 (Dollars in millions) Overnight and Up to 30 Days Total Securities sold under agreements to repurchase: U.S. treasuries $ 284 $ — $ 284 Government agency issued MBS 616 — 616 Government agency issued CMO 10 — 10 Other U.S. government agencies 151 — 151 Government guaranteed loans (SBA and USDA) 126 — 126 Total securities sold under agreements to repurchase $ 1,187 $ — $ 1,187 |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities FHN groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. This hierarchy requires FHN to maximize the use of observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. Each fair value measurement is placed into the proper level based on the lowest level of significant input. These levels are: • Level 1—Valuation is based upon quoted prices for identical instruments traded in active markets. • Level 2—Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. • Level 3—Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models, and similar techniques. Recurring Fair Value Measurements The following tables present the balances of assets and liabilities measured at fair value on a recurring basis as of March 31, 2021 and December 31, 2020: March 31, 2021 (Dollars in millions) Level 1 Level 2 Level 3 Total Trading securities: U.S. treasuries $ — $ 51 $ — $ 51 Government agency issued MBS — 384 — 384 Government agency issued CMO — 190 — 190 Other U.S. government agencies — 237 — 237 States and municipalities — 10 — 10 Corporate and other debt — 204 — 204 Total trading securities — 1,076 — 1,076 Loans held for sale (elected fair value) — 437 12 449 Loans held for investment (elected fair value) — — 17 17 Securities available for sale: U.S. treasuries — 610 — 610 Government agency issued MBS — 4,038 — 4,038 Government agency issued CMO — 2,441 — 2,441 Other U.S. government agencies — 725 — 725 States and municipalities — 475 — 475 Corporate and other debt — 40 — 40 Interest-only strips (elected fair value) — — 22 22 Total securities available for sale — 8,329 22 8,351 Other assets: Deferred compensation mutual funds 122 — — 122 Equity, mutual funds, and other 25 — — 25 Derivatives, forwards and futures 145 — — 145 Derivatives, interest rate contracts — 414 — 414 Derivatives, other — 2 — 2 Total other assets 292 416 — 708 Total assets $ 292 $ 10,258 $ 51 $ 10,601 Trading liabilities: U.S. treasuries $ — $ 361 $ — $ 361 Other U.S.government agencies — 20 — 20 Government agency issued MBS — 8 — 8 Corporate and other debt — 65 — 65 Total trading liabilities — 454 — 454 Other liabilities: Derivatives, forwards and futures 116 — — 116 Derivatives, interest rate contracts — 128 — 128 Derivatives, other — 2 21 23 Total other liabilities 116 130 21 267 Total liabilities $ 116 $ 584 $ 21 $ 721 December 31, 2020 (Dollars in millions) Level 1 Level 2 Level 3 Total Trading securities: U.S. treasuries $ — $ 81 $ — $ 81 Government agency issued MBS — 633 — 633 Government agency issued CMO — 212 — 212 Other U.S. government agencies — 62 — 62 States and municipalities — 7 — 7 Corporate and other debt — 181 — 181 Total trading securities — 1,176 — 1,176 Loans held for sale (elected fair value) — 393 12 405 Loans held for investment (elected fair value) — — 16 16 Securities available for sale: U.S. treasuries — 613 — 613 Government agency issued MBS — 3,812 — 3,812 Government agency issued CMO — 2,406 — 2,406 Other U.S. government agencies — 684 — 684 States and municipalities — 460 — 460 Corporate and other debt — 40 — 40 Interest-only strips (elected fair value) — — 32 32 Total securities available for sale — 8,015 32 8,047 Other assets: Deferred compensation mutual funds 118 — — 118 Equity, mutual funds, and other 25 — — 25 Derivatives, forwards and futures 63 — — 63 Derivatives, interest rate contracts — 702 — 702 Derivatives, other — 4 — 4 Total other assets 206 706 — 912 Total assets $ 206 $ 10,290 $ 60 $ 10,556 Trading liabilities: U.S. treasuries $ — $ 307 $ — $ 307 Government agency issued MBS — 3 — 3 Corporates and other debt — 43 — 43 Total trading liabilities — 353 — 353 Other liabilities: Derivatives, forwards and futures 71 — — 71 Derivatives, interest rate contracts — 60 — 60 Derivatives, other — 4 14 18 Total other liabilities 71 64 14 149 Total liabilities $ 71 $ 417 $ 14 $ 502 Changes in Recurring Level 3 Fair Value Measurements The changes in Level 3 assets and liabilities measured at fair value for the three months ended March 31, 2021 and 2020 on a recurring basis are summarized as follows: Three Months Ended March 31, 2021 (Dollars in millions) Interest- only strips- AFS Loans held Loans held for investment Net derivative Balance on January 1, 2021 $ 32 $ 12 $ 16 $ (14) Total net gains (losses) included in net income 5 1 — (9) Purchases — — — — Sales (27) — — — Settlements — (1) (2) 2 Net transfers into (out of) Level 3 12 (b) — 3 — Balance on March 31, 2021 $ 22 $ 12 $ 17 $ (21) Net unrealized gains (losses) included in net income $ 2 (c) $ 1 (a) $ — $ (9) (d) Three Months Ended March 31, 2020 (Dollars in millions) Trading Interest-only-strips-AFS Loans held for sale Net derivative Balance on January 1, 2020 $ 1 $ 19 $ 14 $ (23) Total net gains (losses) included in net income — (1) — — Purchases — 5 — — Sales — (8) — — Settlements — — (1) 2 Net transfers into (out of) Level 3 — 8 (b) — — Balance on March 31, 2020 $ 1 $ 23 $ 13 $ (21) Net unrealized gains (losses) included in net income $ — (a) $ (1) (c) $ — (a) $ — (d) (a) Primarily included in mortgage banking and title income on the Consolidated Statements of Income. (b) Transfers into interest-only strips - AFS level 3 measured on a recurring basis reflect movements from loans held for sale (Level 2 nonrecurring). (c) Primarily included in Fixed income on the Consolidated Statements of Income. (d) Included in Other expense. There were no net unrealized gains (losses) for Level 3 assets and liabilities included in other comprehensive income as of March 31, 2021 and 2020. Nonrecurring Fair Value Measurements From time to time, FHN may be required to measure certain other financial assets at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of lower of cost or market (LOCOM) accounting or write-downs of individual assets. For assets measured at fair value on a nonrecurring basis which were still held on the Consolidated Balance Sheets at March 31, 2021, and December 31, 2020, respectively, the following tables provide the level of valuation assumptions used to determine each adjustment and the related carrying value. Carrying value at March 31, 2021 (Dollars in millions) Level 1 Level 2 Level 3 Total Loans held for sale—SBAs and USDA $ — $ 299 $ 1 $ 300 Loans held for sale—first mortgages — — 1 1 Loans and leases (a) — — 69 69 OREO (b) — — 11 11 Other assets (c) — — 11 11 Carrying value at December 31, 2020 (Dollars in millions) Level 1 Level 2 Level 3 Total Loans held for sale—SBAs and USDA $ — $ 508 $ 1 $ 509 Loans held for sale—first mortgages — — 1 1 Loans and leases (a) — — 77 77 OREO (b) — — 15 15 Other assets (c) — — 9 9 (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. (c) Represents tax credit investments accounted for under the equity method. 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, 2021 and 2020: Net gains (losses) (Dollars in millions) 2021 2020 Loans held for sale—SBAs and USDA $ (1) $ (1) Loans and leases (a) (7) (5) $ (8) $ (6) (a) Write-downs on these loans are recognized as part of provision for credit losses. For the three months ended March 31, 2021, FHN recognized $33 million of fixed asset impairments and $3 million of impairments for lease assets primarily related to continuing acquisition integration efforts associated with reduction of leased office space and branch optimization. These amounts were primarily recognized in the Corporate segment. For the three months ended March 31, 2020, FHN recognized an insignificant amount of impairment. Lease asset impairments recognized represent the reduction in value of the right-of-use assets associated with leases that are being exited in advance of the contractual lease expiration. Impairments are measured using a discounted cash flow methodology, which is considered a Level 3 valuation. Impairments of long-lived tangible assets reflect locations where the associated land and building are either owned or leased. The fair values of owned sites were determined using estimated sales prices from appraisals and broker opinions less estimated costs to sell with adjustments upon final disposition. The fair values of owned assets in leased sites (e.g., leasehold improvements) were determined using a discounted cash flow approach, based on the revised estimated useful lives of the related assets. Both measurement methodologies are considered Level 3 valuations. Impairment adjustments recognized upon disposition of a location are considered Level 2 valuations. Level 3 Measurements The following tables provide information regarding the unobservable inputs utilized in determining the fair value of Level 3 recurring and non-recurring measurements as of March 31, 2021 and December 31, 2020: (Dollars in millions) Values Utilized Level 3 Class Fair Value at March 31, 2021 Valuation Techniques Unobservable Input Range Weighted Average (d) Available for sale securities SBA-interest only strips $ 22 Discounted cash flow Constant prepayment rate 12% 12% Bond equivalent yield 10% - 13% 11% Loans held for sale - residential real estate $ 13 Discounted cash flow Prepayment speeds - First mortgage 4% - 13% 5% Foreclosure losses 57% - 65% 62% Loss severity trends - First mortgage 9% - 17% of UPB 12% Loans held for sale - unguaranteed interest in SBA loans $ 1 Discounted cash flow Constant prepayment rate 8% - 12% 10% Bond equivalent yield 8% 8% Loans held for investment $ 17 Discounted cash flow Constant prepayment rate 0% - 46% 31% Constant default rate 0% - 15% 1% Loss severity trends 0% - 93% 7% Derivative liabilities, other $ 21 Discounted cash flow Visa covered litigation resolution amount $5.4 billion - $6.0 billion $5.8 billion Probability of resolution scenarios 10% - 50% 16% Time until resolution 12 - 36 months 26 months Loans and leases (a) $ 69 Appraisals from comparable properties Marketability adjustments for specific properties 0% - 10% of appraisal NM Other collateral valuations Borrowing base certificates adjustment 20% - 50% of gross value NM Financial Statements/Auction values adjustment 0% - 25% of reported value NM OREO (b) $ 11 Appraisals from comparable properties Adjustment for value changes since appraisal 0% - 10% of appraisal NM Other assets (c) $ 11 Discounted cash flow Adjustments to current sales yields for specific properties 0% - 15% adjustment to yield NM Appraisals from comparable properties Marketability adjustments for specific properties 0% - 25% 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) Represents tax credit investments accounted for under the equity method. (d) 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 Class Fair Value at December 31, 2020 Valuation Techniques Unobservable Input Range Weighted Average (d) Available for sale securities SBA-interest only strips $ 32 Discounted cash flow Constant prepayment rate 12% 12% Bond equivalent yield 15% - 17% 15% Loans held for sale - residential real estate $ 13 Discounted cash flow Prepayment speeds - First mortgage 5% - 15% 5% Foreclosure losses 59% - 70% 63% Loss severity trends - First mortgage 3% - 19% of UPB 12% Loans held for sale - unguaranteed interest in SBA loans $ 1 Discounted cash flow Constant prepayment rate 8% - 12% 10% Bond equivalent yield 7% - 8% 7% Loans held for investment $ 16 Discounted cash flow Constant prepayment rate 0% - 26% 11% Constant default rate 0% - 14% 1% Loss severity trends 0% - 100% 11% Derivative liabilities, other $ 14 Discounted cash flow Visa covered litigation resolution amount $5.4 billion - $6.0 billion $5.8 billion Probability of resolution scenarios 10% - 50% 16% Time until resolution 3 - 27 months 19 months Loans and leases (a) $ 77 Appraisals from comparable properties Marketability adjustments for specific properties 0% - 10% of appraisal NM Other collateral valuations Borrowing base certificates adjustment 20% - 50% of gross value NM Financial Statements/Auction values adjustment 0% - 25% of reported value NM OREO (b) $ 15 Appraisals from comparable properties Adjustment for value changes since appraisal 0% - 10% of appraisal NM Other assets (c) $ 9 Discounted cash flow Adjustments to current sales yields for specific properties 0% - 15% adjustment to yield NM Appraisals from comparable properties Marketability adjustments for specific properties 0% - 25% 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) Represents tax credit investments accounted for under the equity method. (d) Weighted averages are determined by the relative fair value of the instruments or the relative contribution to an instrument's fair value. Securities AFS . Increases (decreases) in estimated prepayment rates and bond equivalent yields negatively (positively) affect the value of SBA interest only strips. Management additionally considers whether the loans underlying related SBA-interest only strips are delinquent, in default or prepaying, and adjusts the fair value down 20 - 100% depending on the length of time in default. Loans held for sale. Foreclosure losses and prepayment rates are significant unobservable inputs used in the fair value measurement of FHN’s residential real estate loans held for sale. Loss severity trends are also assessed to evaluate the reasonableness of fair value estimates resulting from discounted cash flows methodologies as well as to estimate fair value for newly repurchased loans and loans that are near foreclosure. Significant increases (decreases) in any of these inputs in isolation would result in significantly lower (higher) fair value measurements. All observable and unobservable inputs are re-assessed quarterly. Increases (decreases) in estimated prepayment rates and bond equivalent yields negatively (positively) affect the value of unguaranteed interests in SBA loans. Unguaranteed interest in SBA loans held for sale are carried at less than the outstanding balance due to credit risk estimates. Credit risk adjustments may be reduced if prepayment is likely or as consistent payment history is realized. Management also considers other factors such as delinquency or default and adjusts the fair value accordingly. Loans held for investment. Constant prepayment rate, constant default rate and loss severity trends are significant unobservable inputs used in the fair value measurement of loans held for investment. Increases (decreases) in each of these inputs in isolation result in negative (positive) effects on the valuation of the associated loans. Derivative liabilities. In conjunction with the sales of its Visa Class B shares, FHN and the purchasers entered into derivative transactions whereby FHN will make, or receive, cash payments whenever the conversion ratio of the Visa Class B shares into Visa Class A shares is adjusted. FHN uses a discounted cash flow methodology in order to estimate the fair value of FHN’s derivative liabilities associated with its prior sales of Visa Class B shares. The methodology includes estimation of both the resolution amount for Visa’s Covered Litigation matters as well as the length of time until the resolution occurs. Significant increases (decreases) in either of these inputs in isolation would result in significantly higher (lower) fair value measurements for the derivative liabilities. Additionally, FHN performs a probability weighted multiple resolution scenario to calculate the estimated fair value of these derivative liabilities. Assignment of higher (lower) probabilities to the larger potential resolution scenarios would result in an increase (decrease) in the estimated fair value of the derivative liabilities. Since this estimation process requires application of judgment in developing significant unobservable inputs used to determine the possible outcomes and the probability weighting assigned to each scenario, these derivatives have been classified within Level 3 in fair value measurements disclosures. Loans and leases and Other Real Estate Owned. Collateral-dependent loans and OREO are primarily valued using appraisals based on sales of comparable properties in the same or similar markets. Other collateral (receivables, inventory, equipment, etc.) is valued through borrowing base certificates, financial statements and/or auction valuations. These valuations are discounted based on the quality of reporting, knowledge of the marketability/collectability of the collateral and historical disposition rates. Other assets – tax credit investments. The estimated fair value of tax credit investments accounted for under the equity method is generally determined in relation to the yield (i.e., future tax credits to be received) an acquirer of these investments would expect in relation to the yields experienced on current new issue and/or secondary market transactions. Thus, as tax credits are recognized, the future yield to a market participant is reduced, resulting in consistent impairment of the individual investments. Individual investments are reviewed for impairment quarterly, which may include the consideration of additional marketability discounts related to specific investments which typically includes consideration of the underlying property’s appraised value. Fair Value Option FHN has elected the fair value option on a prospective basis for substantially all types of mortgage loans originated for sale purposes except for mortgage origination operations which utilize the platform acquired from CBF. FHN determined that the election reduces certain timing differences and better matches changes in the value of such loans with changes in the value of derivatives and forward delivery commitments used as economic hedges for these assets at the time of election. Repurchased loans relating to mortgage banking operations conducted prior to the IBKC merger are recognized within loans held for sale at fair value at the time of repurchase, which includes consideration of the credit status of the loans and the estimated liquidation value. FHN has elected to continue recognition of these loans at fair value in periods subsequent to reacquisition. Due to the credit-distressed nature of the vast majority of repurchased loans and the related loss severities experienced upon repurchase, FHN believes that the fair value election provides a more timely recognition of changes in value for these loans that occur subsequent to repurchase. Absent the fair value election, these loans would be subject to valuation at the LOCOM value, which would prevent subsequent values from exceeding the initial fair value, determined at the time of repurchase, but would require recognition of subsequent declines in value. Thus, the fair value election provides for a more timely recognition of any potential future recoveries in asset values while not affecting the requirement to recognize subsequent declines in value. FHN also has a portion of mortgage loans held for investment for which the fair value option was elected upon origination and which continue to be accounted for at fair value. The following tables reflect the differences between the fair value carrying amount of residential real estate loans held for sale and held for investment measured at fair value in accordance with management’s election and the aggregate unpaid principal amount FHN is contractually entitled to receive at maturity. March 31, 2021 (Dollars in millions) Fair value Aggregate Fair value carrying amount Residential real estate loans held for sale reported at fair value: Total loans $ 449 $ 445 $ 4 Nonaccrual loans 2 5 (3) Loans held for investment reported at fair value: Total loans $ 17 $ 17 $ — Nonaccrual loans 1 1 — December 31, 2020 (Dollars in millions) Fair value Aggregate Fair value carrying amount Residential real estate loans held for sale reported at fair value: Total loans $ 405 $ 442 $ (37) Nonaccrual loans 2 5 (3) Loans held for investment reported at fair value: Total loans $ 16 $ 17 $ (1) Nonaccrual loans 1 1 — Assets and liabilities accounted for under the fair value election are initially measured at fair value with subsequent changes in fair value recognized in earnings. Such changes in the fair value of assets and liabilities for which FHN elected the fair value option are included in current period earnings with classification in the income statement line item reflected in the following table: Three Months Ended (Dollars in millions) 2021 2020 Changes in fair value included in net income: Mortgage banking noninterest income Loans held for sale $ (9) $ — For the three months ended March 31, 2021 and 2020, the amount for residential real estate loans held for sale included an insignificant amount of gains in pretax earnings that is attributable to changes in instrument-specific credit risk. The portion of the fair value adjustments related to credit risk was determined based on estimated default rates and estimated loss severities. Interest income on residential real estate loans held for sale measured at fair value is calculated based on the note rate of the loan and is recorded in the interest income section of the Consolidated Statements of Income as interest on loans held for sale. FHN has elected to account for retained interest-only strips from guaranteed SBA loans recorded in available-for-sale securities at fair value through earnings. Since these securities are subject to the risk that prepayments may result in FHN not recovering all or a portion of its recorded investment, the fair value election results in a more timely recognition of the effects of estimated prepayments through earnings rather than being recognized through other comprehensive income with periodic review for other-than-temporary impairment. Gains or losses are recognized through fixed income revenues and are presented in the recurring measurements table. Determination of Fair Value Fair values are based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following describes the assumptions and methodologies used to estimate the fair value of financial instruments recorded at fair value in the Consolidated Balance Sheets and for estimating the fair value of financial instruments for which fair value is disclosed. Short-term financial assets. Federal funds sold, securities purchased under agreements to resell, and interest bearing deposits with other financial institutions and the Federal Reserve are carried at historical cost. The carrying amount is a reasonable estimate of fair value because of the relatively short time between the origination of the instrument and its expected realization. Trading securities and trading liabilities. Trading securities and trading liabilities are recognized at fair value through current earnings. Trading inventory held for broker-dealer operations is included in trading securities and trading liabilities. Broker-dealer long positions are valued at bid price in the bid-ask spread. Short positions are valued at the ask price. Inventory positions are valued using observable inputs including current market transactions, benchmark yields, credit spreads, and consensus prepayment speeds. Trading loans are valued using observable inputs including current market transactions, swap rates, mortgage rates, and consensus prepayment speeds. Securities available for sale. Valuations of available-for-sale securities are performed using observable inputs obtained from market transactions in similar securities. Typical inputs include benchmark yields, consensus prepayment speeds, and credit spreads. Trades from similar securities and broker quotes are used to support these valuations. Interest only strips are valued at elected fair value based on an income approach using an internal valuation model. The internal valuation model includes assumptions regarding projections of future cash flows, prepayment rates, default rates and interest only strip terms. These securities bear the risk of loan prepayment or default that may result in FHN not recovering all or a portion of its recorded investment. When appropriate, valuations are adjusted for various factors including default or prepayment status of the underlying SBA loans. Because of the inherent uncertainty of valuation, those estimated values may be higher or lower than the values that would have been used had a ready market for the securities existed, and may change in the near term. Loans held for sale. FHN determines the fair value of loans held for sale using either current transaction prices or discounted cash flow models. Fair values are determined using current transaction prices and/or values on similar assets when available, including committed bids for specific loans or loan portfolios. Uncommitted bids may be adjusted based on other available market information. Fair value of residential real estate loans held for sale determined using a discounted cash flow model incorporates both observable and unobservable inputs. Inputs in the discounted cash flow model include current mortgage rates for similar products, estimated prepayment rates, foreclosure losses, and various loan performance measures (delinquency, LTV, credit score). Adjustments for delinquency and other differences in loan characteristics are typically reflected in the model’s discount rates. Loss severity trends and the value of underlying collateral are also considered in assessing the appropriate fair value for severely delinquent loans and loans in foreclosure. The valuation of HELOCs also incorporates estimated cancellation rates for loans expected to become delinquent. Non-mortgage consumer loans held for sale are valued using committed bids for specific loans or loan portfolios or current market pricing for similar assets with adjustments for differences in credit standing (delinquency, historical default rates for similar loans), yield, collateral values and prepayment rates. If pricing for similar assets is not available, a discounted cash flow methodology is utilized, which incorporates all of these factors into an estimate of investor required yield for the discount rate. FHN utilizes quoted market prices of similar instruments or broker and dealer quotations to value the SBA and USDA guaranteed loans. FHN values SBA-unguaranteed interests in loans held for sale based on individual loan characteristics, such as industry type and pay history which generally follows an income approach. Furthermore, these valuations are adjusted for changes in prepayment estimates and are reduced due to restrictions on trading. The fair value of other non-residential real estate loans held for sale is approximated by their carrying values based on current transaction values. Mortgage loans held for investment at fair value option. The fair value of mortgage loans held for investment at fair value option is determined by a third party using a discounted cash flow model using various assumptions about future loan performance (constant prepayment rate, constant default rate and loss severity trends) and market discount rates. Loans held for investment. The fair values of mortgage loans are estimated using an exit price methodology that is based on present values using the interest rate that would be charged for a similar loan to a borrower with similar risk, weighted for varying maturity dates and adjusted for a liquidity discount based on the estimated time period to complete a sale transaction with a market participant. Other loans and leases are valued based on present values using the interest rate that would be charged for a similar instrument to a borrower with similar risk, applicable to each category of instruments, and adjusted for a liquidity discount based on the estimated time period to complete a sale transaction with a market participant. For loans measured using the estimated fair value of collateral less costs to sell, fair value is estimated using appraisals of the collateral. Collateral values are monitored and additional write-downs are recognized if it is determined that the estimated collateral values have declined further. Estimated costs to sell are based on current amounts of disposal costs for similar assets. Carrying value is considered to reflect fair value for these loans. Derivative assets and liabilities . The fair value for forwards and futures contracts is based on current transactions involving identical securities. Futures contracts are exchange-traded and thus have no credit risk factor assigned as the risk of non-performance is limited to the clearinghouse used. Valuations of other derivatives (primarily interest rate contracts) are based on inputs observed in active markets for similar instruments. Typically inputs include benchmark yields, option volatility and option skew. Starting in October 2020, centrally cleared derivatives are discounted using SOFR as required by clearinghouses. In measuring the fair value of these derivative assets and liabilities, FHN has elected to consider credit risk based on the net exposure to individual counterparties. Credit risk is mitigated for these instruments through the use of mutual margining and master netting agreements as well as collateral posting requirements. For derivative contracts with daily cash margin requirements that are considered settlements, the daily margin amount is netted within derivative assets or liabilities. Any remaining credit risk related to interest rate derivatives is considered in determining fair value through evaluation of additional factors such as client loan grades and debt ratings. Foreign currency related derivatives also utilize observable exchange rates in the determination of fair value. The determination of fair value for FHN’s derivative liabilities associated with its prior sales of Visa Class B shares are classified within Level 3 in the fair value measurements disclosure as previously discussed in the unobservable inputs discussion. The fair value of risk participations is determined in reference to the fair value of the related derivative contract between the borrower and the lead bank in the participation structure, which is determined consistent with the valuation process discussed above. This value is adjusted for the pro rata portion of the reference derivative’s notional value and an assessment of credit risk for the referenced borrower. OREO. OREO primarily consists of properties that have been acquire |
Other Events
Other Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Other Events | Other EventsIssuance of Series F Preferred StockOn May 3, 2021, FHN issued 1,500 shares having an aggregate liquidation preference of $150 million of Series F Non-Cumulative Perpetual Preferred Stock for net proceeds of approximately $146 million. Dividends on the Series F Preferred Stock, if declared, accrue and are payable quarterly, in arrears, at a rate of 4.70% per annum. For the issuance, FHN issued depositary shares, each of which represents a fractional ownership interest in a share of FHN's preferred stock. |
Basis of Presentation and Acc_2
Basis of Presentation and Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Accounting | The accompanying unaudited consolidated financial statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and notes necessary for complete financial statements in accordance with GAAP. In the opinion of management, the accompanying unaudited consolidated financial statements contain all significant adjustments, consisting of normal and recurring items, considered necessary for fair presentation. These interim financial statements should be read in conjunction with FHN's audited consolidated financial statements and notes in FHN's Annual Report on Form 10-K for the year ended December 31, 2020. Operating results for the interim period are not necessarily indicative of the results that may be expected for the full year. All significant intercompany balances and transactions have been eliminated in consolidation. Certain amounts reported in prior years have been reclassified to conform to the current period presentation. See the Glossary of Acronyms and Terms included in this Report for terms used herein. |
Accounting Changes With Extended Transition Periods | Accounting Changes With Extended Transition Periods In March 2020, the FASB issued ASU 2020-04, “Facilitation of the Effects of Reference Rate Reform on Financial Reporting” which provides several optional expedients and exceptions to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The provisions of ASU 2020-04 primarily affect 1) contract modifications (e.g., loans, leases, debt, and derivatives) made in anticipation that a reference rate (e.g., LIBOR) will be discontinued and 2) the application of hedge accounting for existing relationships affected by those modifications. The provisions of ASU 2020-04 are effective upon release and apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by ASU 2020-04 do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. FHN has been identifying contracts affected by reference rate reform and developing modification plans for those contracts. FHN has elected to utilize the optional expedients and exceptions provided by ASU 2020-04 for certain contract modifications. FHN anticipates that it will continue to utilize the expedients and exceptions in situations where they mitigate potential accounting outcomes that do not faithfully represent management’s intent or risk management activities, consistent with the purpose of the standard. In January 2021, the FASB issued ASU 2021-01, "Scope" to expand the scope of ASU 2020-04 to apply to certain contract modifications that were implemented in October 2020 by derivative clearinghouses for the use of Secure Overnight Funding Rate (SOFR) in discounting, margining and price alignment for centrally cleared derivatives, including derivatives utilized in hedging relationships. ASU 2021-01 also applies to derivative contracts affected by the change in discounting convention regardless of whether they are centrally cleared (i.e., bi-lateral contracts can also be modified) and regardless of whether they reference LIBOR. ASU 2021-01 was effective immediately upon issuance with retroactive application permitted. FHN elected to retroactively apply the provisions of ASU 2021-01 because FHN's centrally cleared derivatives were affected by the change in discounting convention and because FHN has other bi-lateral derivative contracts that may be modified to conform to the use of SOFR for discounting. Adoption did not have a significant effect on FHN's reported financial condition or earnings. |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The following schedule details a preliminary allocation of merger consideration to the valuations of the identifiable tangible and intangible assets acquired and liabilities assumed from IBKC as of July 1, 2020. (Dollars in millions) IBERIABANK Corporation Assets: Cash and due from banks $ 395 Interest-bearing deposits with banks 1,683 Securities available for sale at fair value 3,544 Loans held for sale 320 Loans and leases (a) 25,921 Allowance for loan and lease losses (284) Other intangible assets 240 Premises and equipment 311 OREO 9 Other assets 1,156 Total assets acquired $ 33,295 Liabilities: Deposits $ 28,232 Short-term borrowings 209 Term borrowings 1,200 Other liabilities 618 Total liabilities assumed $ 30,259 Net assets acquired $ 3,036 Consideration paid: Consideration for outstanding common stock $ 2,243 Consideration for equity awards 28 Consideration for preferred stock 231 Total consideration paid $ 2,502 Preliminary purchase accounting gain $ (534) (a) Includes $1.3 billion of initial net investments in sales-type and direct financing leases. |
Schedule of Merger and Integration Expense | Total merger and integration expense recognized for the three months ended March 31, 2021 and 2020 are presented in the table below: Three Months Ended (Dollars in millions) 2021 2020 Personnel expense (a) $ 21 $ 1 Legal and professional fees (b) 3 2 Net occupancy expense (c) 3 — Other expense (d) 43 3 Total $ 70 $ 6 Certain previously reported amounts have been reclassified to agree with current presentation. (a) Primarily comprised of fees for severance and retention. (b) Primarily comprised of fees for legal, accounting, and merger consultants. (c) Primarily relates to expenses associated with lease exits. |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Marketable Securities [Abstract] | |
Schedule of FHN's Investment Securities | The following tables summarize FHN’s investment securities on March 31, 2021 and December 31, 2020: March 31, 2021 (Dollars in millions) Amortized Gross Gross Fair Securities available for sale: U.S. treasuries $ 610 $ — $ — $ 610 Government agency issued MBS 4,009 68 (39) 4,038 Government agency issued CMO 2,463 19 (41) 2,441 Other U.S. government agencies 733 5 (13) 725 Corporate and other debt 40 — — 40 States and municipalities 467 9 (1) 475 $ 8,322 $ 101 $ (94) 8,329 AFS securities recorded at fair value through earnings: SBA-interest only strips (a) 22 Total securities available for sale (b) $ 8,351 (a) SBA-interest only strips are recorded at elected fair value. See Note 17 - Fair Value of Assets and Liabilities for additional information. (b) Includes $7.0 billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes. December 31, 2020 (Dollars in millions) Amortized Gross Gross Fair Securities available for sale: U.S. treasuries $ 613 $ — $ — $ 613 Government agency issued MBS 3,722 92 (2) 3,812 Government agency issued CMO 2,380 29 (3) 2,406 Other U.S. government agencies 672 12 — 684 Corporate and other debt 40 1 (1) 40 States and municipalities 445 15 — 460 $ 7,872 $ 149 $ (6) 8,015 AFS securities recorded at fair value through earnings: SBA-interest only strips (a) 32 Total securities available for sale (b) $ 8,047 (a) SBA-interest only strips are recorded at elected fair value. See Note 17 - Fair Value of Assets and Liabilities for additional information. (b) Includes $6.4 billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes. |
Schedule of Amortized Cost And Fair Value By Contractual Maturity | The amortized cost and fair value by contractual maturity for the available-for-sale debt securities portfolio on March 31, 2021 is provided below: Available for Sale (Dollars in millions) Amortized Fair Within 1 year $ 758 $ 759 After 1 year through 5 years 146 148 After 5 years through 10 years 345 348 After 10 years 601 617 Subtotal 1,850 1,872 Government agency issued MBS and CMO (a) 6,472 6,479 Total $ 8,322 $ 8,351 (a) Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. |
Schedule of Investments Within The Available For Sale Portfolio That Had Unrealized Losses | The following tables provide information on investments within the available-for-sale portfolio that had unrealized losses as of March 31, 2021 and December 31, 2020: As of March 31, 2021 Less than 12 months 12 months or longer Total (Dollars in millions) Fair Unrealized Fair Unrealized Fair Unrealized Government agency issued MBS $ 1,772 $ (39) $ — $ — $ 1,772 $ (39) Government agency issued CMO 1,508 (41) — — 1,508 (41) Other U.S. government agencies 405 (13) — — 405 (13) States and municipalities 82 (1) — — 82 (1) Total $ 3,767 $ (94) $ — $ — $ 3,767 $ (94) As of December 31, 2020 Less than 12 months 12 months or longer Total (Dollars in millions) Fair Unrealized Fair Unrealized Fair Unrealized U.S. treasuries $ 307 $ — $ — $ — $ 307 $ — Government agency issued MBS 426 (2) — — 426 (2) Government agency issued CMO 586 (3) — — 586 (3) Other U.S. government agencies 80 (1) — — 80 (1) States and municipalities 1 — — — 1 — Total $ 1,400 $ (6) $ — $ — $ 1,400 $ (6) |
Loans and Leases (Tables)
Loans and Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Schedule Of Loans By Portfolio Segment | The following table provides the amortized cost basis of loans and leases by portfolio segment and class as of March 31, 2021 and December 31, 2020, excluding accrued interest of $182 million and $180 million, respectively, which is included in Other assets in the Consolidated Balance Sheets. (Dollars in millions) March 31, 2021 December 31, 2020 Commercial: Commercial and industrial (a) (b) $ 28,421 $ 27,700 Loans to mortgage companies 5,530 5,404 Total commercial, financial, and industrial 33,951 33,104 Commercial real estate 12,470 12,275 Consumer: HELOC 2,270 2,420 Real estate installment loans 8,783 9,305 Total consumer real estate 11,053 11,725 Credit card and other 1,126 1,128 Loans and leases $ 58,600 $ 58,232 Allowance for loan and lease losses (914) (963) Net loans and leases $ 57,686 $ 57,269 (a) Includes equipment financing leases of $614 million and $587 million, respectively, as of March 31, 2021 and December 31, 2020. (b) Includes PPP loans fully guaranteed by the SBA of $5.1 billion and $4.1 billion as of March 31, 2021 and December 31, 2020, respectively. |
Financing Receivable Credit Quality Indicators | 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, 2021 and December 31, 2020: March 31, 2021 C&I (Dollars in millions) 2021 2020 2019 2018 2017 Prior to 2017 LMC (a) Revolving Revolving Total Credit Quality Indicator: Pass (PD grades 1 through 12) (c) $ 2,368 $ 7,915 $ 4,572 $ 2,174 $ 1,600 $ 3,038 $ 5,530 $ 5,535 $ 14 $ 32,746 Special Mention (PD grade 13) 5 68 65 51 28 81 — 189 7 494 Substandard, Doubtful, or Loss (PD grades 14,15, and 16) 35 148 80 124 35 94 — 148 47 711 Total C&I loans $ 2,408 $ 8,131 $ 4,717 $ 2,349 $ 1,663 $ 3,213 $ 5,530 $ 5,872 $ 68 $ 33,951 (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. (b) C&I loans converted from revolving to term in 2021 were not material. (c) 2021 and 2020 balances include PPP loans. December 31, 2020 C&I (Dollars in millions) 2020 2019 2018 2017 2016 Prior to 2016 LMC (a) Revolving Revolving Total Credit Quality Indicator: Pass (PD grades 1 through 12) (c) $ 9,060 $ 5,138 $ 2,628 $ 1,748 $ 1,161 $ 2,145 $ 5,404 $ 4,571 $ 60 $ 31,915 Special Mention (PD grade 13) 89 93 70 31 37 64 — 127 1 512 Substandard, Doubtful, or Loss (PD grades 14,15, and 16) 182 77 114 50 42 58 — 95 59 677 Total C&I loans $ 9,331 $ 5,308 $ 2,812 $ 1,829 $ 1,240 $ 2,267 $ 5,404 $ 4,793 $ 120 $ 33,104 (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. (b) $50 million of C&I loans were converted from revolving to term in 2020. (c) 2020 balances include PPP loans. March 31, 2021 CRE (Dollars in millions) 2021 2020 2019 2018 2017 Prior to 2017 Revolving Revolving Total Credit Quality Indicator: Pass (PD grades 1 through 12) $ 514 $ 2,346 $ 3,350 $ 1,612 $ 1,024 $ 2,652 $ 320 $ — $ 11,818 Special Mention (PD grade 13) — 74 38 178 77 109 — — 476 Substandard, Doubtful, or Loss (PD grades 14,15, and 16) — 18 12 21 43 57 25 — 176 Total CRE loans $ 514 $ 2,438 $ 3,400 $ 1,811 $ 1,144 $ 2,818 $ 345 $ — $ 12,470 December 31, 2020 CRE (Dollars in millions) 2020 2019 2018 2017 2016 Prior to 2016 Revolving Revolving Total Credit Quality Indicator: Pass (PD grades 1 through 12) $ 2,477 $ 3,311 $ 1,750 $ 1,140 $ 946 $ 1,800 $ 259 $ 19 $ 11,702 Special Mention (PD grade 13) 48 24 117 75 71 54 — — 389 Substandard, Doubtful, or Loss (PD grades 14,15, and 16) 30 13 21 42 27 33 18 — 184 Total CRE loans $ 2,555 $ 3,348 $ 1,888 $ 1,257 $ 1,044 $ 1,887 $ 277 $ 19 $ 12,275 March 31, 2021 Consumer Real Estate (Dollars in millions) 2021 2020 2019 2018 2017 Prior to 2017 Revolving Revolving Total FICO score 740 or greater $ 131 $ 1,195 $ 1,060 $ 613 $ 529 $ 2,230 $ 1,200 $ 150 $ 7,108 FICO score 720-739 8 163 142 91 69 249 179 27 928 FICO score 700-719 15 129 103 75 72 267 173 31 865 FICO score 660-699 13 121 120 115 69 329 238 53 1,058 FICO score 620-659 1 40 57 31 21 134 83 35 402 FICO score less than 620 108 58 32 41 50 302 56 45 692 Total $ 276 $ 1,706 $ 1,514 $ 966 $ 810 $ 3,511 $ 1,929 $ 341 $ 11,053 (a) $11 million of HELOC loans were converted from revolving to term in 2021. December 31, 2020 Consumer Real Estate (Dollars in millions) 2020 2019 2018 2017 2016 Prior to 2016 Revolving Revolving Loans converted to term loans Total FICO score 740 or greater $ 1,186 $ 1,167 $ 703 $ 610 $ 674 $ 1,719 $ 1,275 $ 159 $ 7,493 FICO score 720-739 157 158 100 77 92 197 186 29 996 FICO score 700-719 122 107 78 76 73 221 177 34 888 FICO score 660-699 130 141 123 75 85 296 264 59 1,173 FICO score 620-659 45 61 37 28 35 127 92 36 461 FICO score less than 620 107 36 52 54 95 261 61 48 714 Total $ 1,747 $ 1,670 $ 1,093 $ 920 $ 1,054 $ 2,821 $ 2,055 $ 365 $ 11,725 The following tables reflect the amortized cost basis by year of origination and refreshed FICO scores for credit card and other loans as of March 31, 2021 and December 31, 2020. March 31, 2021 Credit Card and Other (Dollars in millions) 2021 2020 2019 2018 2017 Prior to 2017 Revolving Revolving Total FICO score 740 or greater $ 13 $ 51 $ 43 $ 53 $ 32 $ 119 $ 279 $ 6 $ 596 FICO score 720-739 2 8 7 6 7 30 36 2 98 FICO score 700-719 3 8 7 8 6 38 35 2 107 FICO score 660-699 2 29 10 14 8 52 41 3 159 FICO score 620-659 1 4 4 6 4 31 19 1 70 FICO score less than 620 11 9 6 7 10 30 21 2 96 Total $ 32 $ 109 $ 77 $ 94 $ 67 $ 300 $ 431 $ 16 $ 1,126 (a) $2 million of other consumer loans were converted from revolving to term in 2021. December 31, 2020 Credit Card and Other (Dollars in millions) 2020 2019 2018 2017 2016 Prior to 2016 Revolving Revolving Loans converted to term loans Total FICO score 740 or greater $ 57 $ 52 $ 59 $ 37 $ 23 $ 116 $ 159 $ 5 $ 508 FICO score 720-739 7 7 9 8 8 27 91 2 159 FICO score 700-719 9 8 9 8 4 38 37 3 116 FICO score 660-699 30 12 15 9 9 48 46 3 172 FICO score 620-659 5 5 7 5 10 24 20 1 77 FICO score less than 620 14 7 8 11 9 26 20 1 96 Total $ 122 $ 91 $ 107 $ 78 $ 63 $ 279 $ 373 $ 15 $ 1,128 |
Accruing And Non-Accruing Loans By Class | The following table reflects accruing and non-accruing loans and leases by class on March 31, 2021 and December 31, 2020: March 31, 2021 Accruing Non-Accruing (Dollars in millions) Current 30-89 90+ Total Current 30-89 90+ Total Total Commercial, financial, and industrial: C&I (a) (b) $ 28,251 $ 26 $ — $ 28,277 $ 102 $ 7 $ 35 $ 144 $ 28,421 Loans to mortgage companies 5,530 — — 5,530 — — — — 5,530 Total commercial, financial, and industrial 33,781 26 — 33,807 102 7 35 144 33,951 Commercial real estate: CRE 12,392 11 — 12,403 20 3 44 67 12,470 Consumer real estate: HELOC 2,198 6 9 2,213 43 2 12 57 2,270 Real estate installment loans 8,623 33 4 8,660 72 8 43 123 8,783 Total consumer real estate 10,821 39 13 10,873 115 10 55 180 11,053 Credit card and other: Credit card 273 2 — 275 — — — — 275 Other 845 3 — 848 1 1 1 3 851 Total credit card and other 1,118 5 — 1,123 1 1 1 3 1,126 Total loans and leases $ 58,112 $ 81 $ 13 $ 58,206 $ 238 $ 21 $ 135 $ 394 $ 58,600 (a) $100 million of C&I loans are nonaccrual loans that have been specifically reviewed for impairment with no related allowance. (b) C&I loans include TRUPS loans of $210 million, which is net of an amortizing discount of $18 million. December 31, 2020 Accruing Non-Accruing (Dollars in millions) Current 30-89 90+ Total Current 30-89 90+ Total Total Commercial, financial, and industrial: C&I (a) (b) $ 27,541 $ 15 $ — $ 27,556 $ 88 $ 12 $ 44 $ 144 $ 27,700 Loans to mortgage companies 5,404 — — 5,404 — — — — 5,404 Total commercial, financial, and industrial 32,945 15 — 32,960 88 12 44 144 33,104 Commercial real estate: CRE 12,194 23 — 12,217 10 42 6 58 12,275 Consumer real estate: HELOC 2,336 13 11 2,360 43 3 14 60 2,420 Real estate installment loans 9,138 40 5 9,183 63 9 50 122 9,305 Total consumer real estate 11,474 53 16 11,543 106 12 64 182 11,725 Credit card and other: Credit card 279 3 1 283 — — — — 283 Other 838 6 — 844 1 — 1 2 845 Total credit card and other 1,117 9 1 1,127 1 — 1 2 1,128 Total loans and leases, net of unearned income $ 57,730 $ 100 $ 17 $ 57,847 $ 205 $ 66 $ 115 $ 386 $ 58,232 (a) $101 million of C&I loans are nonaccrual loans that have been specifically reviewed for impairment with no related allowance. (b) C&I loans include TRUPs loans of $210 million, which is net of an amortizing discount of $18 million. |
Schedule Of Troubled Debt Restructurings Occurring During The Year | The following tables present the end of period balance for loans modified in a TDR during the periods indicated: Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 (Dollars in millions) Number Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial, financial, and industrial: C&I 17 $ 8 $ 8 3 $ 6 $ 4 Commercial real estate: CRE 1 12 10 — — — Consumer real estate: HELOC 12 2 2 8 1 1 Real estate installment loans 9 2 2 10 2 2 Total consumer real estate 21 4 4 18 3 3 Credit card and other 13 — — 24 — — Total TDRs 52 $ 24 $ 22 45 $ 9 $ 7 |
Schedule Of Troubled Debt Restructurings Within The Previous 12 Months | The following tables present TDRs which re-defaulted during the three months ended March 31, 2021 and 2020, a nd as to which the modification occurred 12 months or less prior to the re-default. For purposes of this disclosure, FHN generally defines payment default as 30 or more days past due. Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 (Dollars in millions) Number Recorded Number Recorded Commercial, financial, and industrial: C&I 7 $ 1 — $ — Commercial real estate: CRE — — — — Consumer real estate: HELOC 1 — 4 1 Real estate installment loans 3 2 5 — Total consumer real estate 4 2 9 1 Credit card and other — — 7 — Total TDRs 11 $ 3 16 $ 1 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Rollforward Of The Allowance For Loan Losses By Portfolio Segment | The following table provides a rollforward of the ALLL and RULC by portfolio type for the three months ended March 31, 2021 and 2020: (Dollars in millions) Commercial, Financial, and Industrial (a) Commercial Real Estate Consumer Real Estate Credit Card and Other Total Allowance for loan and lease losses: Balance as of January 1, 2021 $ 453 $ 242 $ 242 $ 26 $ 963 Charge-offs (16) (3) (1) (3) (23) Recoveries 6 2 6 1 15 Provision (provision credit) for loan and lease losses (1) (8) (25) (6) (41) Balance as of March 31, 2021 $ 442 $ 232 $ 222 $ 18 $ 914 Reserve for remaining unfunded commitments: Balance as of January 1, 2021 $ 65 $ 10 $ 10 $ — $ 85 Provision (provision credit) for remaining unfunded commitments (3) 1 (2) — (4) Balance as of March 31, 2021 $ 62 $ 11 $ 8 $ — $ 81 Allowance for loan losses: Balance as of January 1, 2020, as adjusted (b) $ 142 $ 29 $ 121 $ 15 $ 307 Charge-offs (7) (1) (2) (4) (14) Recoveries 1 1 3 1 6 Provision for loan losses 119 19 — 7 145 Balance as of March 31, 2020 $ 255 $ 48 $ 122 $ 19 $ 444 Reserve for remaining unfunded commitments: Balance as of January 1, 2020, as adjusted (b) $ 21 $ 3 $ 6 $ — $ 30 Provision for remaining unfunded commitments 6 3 — — 9 Balance as of March 31, 2020 $ 27 $ 6 $ 6 $ — $ 39 (a) C&I loans as of March 31, 2021 include $5.1 billion in PPP loans which due to the government guarantee and forgiveness provisions are considered to have no credit risk and therefore have no allowance for loan and lease losses. |
Mortgage Banking Activity (Tabl
Mortgage Banking Activity (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Mortgage Banking [Abstract] | |
Schedule of Residential Mortgage Loans Held For Sale | The following table summarizes activity relating to residential mortgage loans held for sale as of the three months ended March 31, 2021 and the year ended December 31, 2020. (Dollars in millions) March 31, 2021 December 31, 2020 Balance at beginning of period $ 409 $ 4 Acquired — 320 Originations and purchases 446 2,499 Sales, net of gains (421) (2,405) Mortgage loans transferred from (to) held for investment 3 (9) Balance at end of period $ 437 $ 409 |
Schedule of Mortgage Servicing Rights | Mortgage servicing rights had the following carrying values as of the periods indicated. March 31, 2021 (Dollars in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Mortgage servicing rights $ 31 $ (4) $ 27 December 31, 2020 (Dollars in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Mortgage servicing rights $ 28 $ (3) $ 25 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary Of Gross Goodwill And Accumulated Impairment Losses And Write-Offs Detailed By Reportable Segments | The following is a summary of goodwill by reportable segment included in the Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020. (Dollars in millions) Regional Specialty Banking Total December 31, 2019 $ 802 $ 631 $ 1,433 Additions 78 — 78 December 31, 2020 $ 880 $ 631 $ 1,511 December 31, 2020 $ 880 $ 631 $ 1,511 Additions and adjustments — — — March 31, 2021 $ 880 $ 631 $ 1,511 |
Summary Of Intangible Assets and Accumulated Amortization Included In The Consolidated Statements of Condition | The following table, which excludes fully amortized intangibles, presents other intangible assets included in the Consolidated Balance Sheets: March 31, 2021 December 31, 2020 (Dollars in millions) Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Core deposit intangibles $ 371 $ (93) $ 278 $ 371 $ (81) $ 290 Customer relationships 37 (9) 28 37 (8) 29 Other (a) 41 (8) 33 41 (6) 35 Total $ 449 $ (110) $ 339 $ 449 $ (95) $ 354 (a) Includes noncompete covenants and purchased credit card intangible assets. Also includes title plant intangible assets and state banking licenses which are not subject to amortization. |
Preferred Stock (Tables)
Preferred Stock (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Schedule of Stock by Class | The following table presents a summary of FHN's non-cumulative perpetual preferred stock: (Dollars in millions) March 31, 2021 December 31, 2020 Issuance Date Earliest Redemption Date (a) Annual Dividend Rate Dividend Payments Shares Outstanding Liquidation Amount Carrying Amount Carrying Amount Series A 1/31/2013 4/10/2018 6.200 % Quarterly 1,000 $ 100 $ 96 $ 96 Series B 7/2/2020 8/1/2025 6.625 % (b) Semi-annually 8,000 80 77 77 Series C 7/2/2020 5/1/2026 6.600 % (c) Quarterly 5,750 58 59 59 Series D 7/2/2020 5/1/2024 6.100 % (d) Semi-annually 10,000 100 93 93 Series E 5/28/2020 10/10/2025 6.500 % Quarterly 1,500 150 145 145 26,250 $ 488 $ 470 $ 470 (a) Denotes earliest optional redemption date. Earlier redemption is possible, at FHN's election, if certain regulatory capital events occur. (b) Fixed dividend rate will reset on August 1, 2025 to three-month LIBOR plus 4.262%. (c) Fixed dividend rate will reset on May 1, 2026 to three-month LIBOR plus 4.920%. (d) Fixed dividend rate will reset on May 1, 2024 to three-month LIBOR plus 3.859%. |
Components of Other Comprehen_2
Components of Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income/(Loss) | The following table provides the changes in accumulated other comprehensive income (loss) by component, net of tax, for the three months ended March 31, 2021 and 2020: (Dollars in millions) Securities AFS Cash Flow Pension and Total Balance as of January 1, 2021 $ 108 $ 12 $ (260) $ (140) Net unrealized gains (losses) (103) (3) 2 (104) Amounts reclassified from AOCI — 1 2 3 Other comprehensive income (loss) (103) (2) 4 (101) Balance as of March 31, 2021 $ 5 $ 10 $ (256) $ (241) (Dollars in millions) Securities AFS Cash Flow Pension and Total Balance as of January 1, 2020 $ 31 $ 3 $ (273) $ (239) Net unrealized gains (losses) 89 13 — 102 Amounts reclassified from AOCI — — 2 2 Other comprehensive income (loss) 89 13 2 104 Balance as of March 31, 2020 $ 120 $ 16 $ (271) $ (135) |
Reclassification Out Of Accumulated Other Comprehensive Income | Reclassifications from AOCI, and related tax effects, were as follows: (Dollars in millions) Three Months Ended Details about AOCI 2021 2020 Affected line item in the statement where net income is presented Cash flow hedges: Realized (gains) losses on cash flow hedges $ 2 $ — Interest and fees on loans and leases Tax expense (benefit) (1) — Income tax expense 1 — Pension and Postretirement Plans: Amortization of prior service cost and net actuarial (gain) loss 4 3 All other expense Tax expense (benefit) (2) (1) Income tax expense 2 2 Total reclassification from AOCI $ 3 $ 2 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation Of Earnings/(Loss) Per Common And Diluted Share | The computations of basic and diluted earnings per common share were as follows: Three Months Ended (Dollars in millions, except per share data; shares in thousands) 2021 2020 Net income $ 236 $ 16 Net income attributable to noncontrolling interest 3 3 Net income attributable to controlling interest 233 13 Preferred stock dividends 8 1 Net income available to common shareholders 225 12 Weighted average common shares outstanding—basic 552,249 311,597 Effect of dilutive securities 5,283 1,573 Weighted average common shares outstanding—diluted 557,532 313,170 Basic earnings per common share $ 0.41 $ 0.04 Diluted earnings per common share $ 0.40 $ 0.04 |
Schedule of Anti-Dilutive Options and Awards | The following table presents outstanding options and other equity awards that were excluded from the calculation of diluted earnings per share because they were either anti-dilutive (the exercise price was higher than the weighted-average market price for the period) or the performance conditions have not been met: Three Months Ended (Shares in thousands) 2021 2020 Stock options excluded from the calculation of diluted EPS 3,827 3,031 Weighted average exercise price of stock options excluded from the calculation of diluted EPS $ 18.11 $ 18.73 Other equity awards excluded from the calculation of diluted EPS 2,784 4,264 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits, Description [Abstract] | |
Schedule of Components of Net Periodic Benefit Cost | The components of net periodic benefit cost for the three months ended March 31 were as follows: Pension Benefits (Dollars in millions) 2021 2020 Components of net periodic benefit cost Interest cost $ 4 $ 6 Expected return on plan assets (4) (6) Amortization of unrecognized: Actuarial (gain) loss 2 3 Other 2 — Net periodic benefit cost $ 4 $ 3 |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Amounts Of Consolidated Revenue, Expense, Tax And Assets | The following tables reflect financial information for each reportable business segment for the three months ended March 31 2021 and 2020: Three Months Ended March 31, 2021 (Dollars in millions) Regional Banking Specialty Banking Corporate Consolidated Net interest income (expense) $ 426 $ 159 $ (77) $ 508 Provision for credit losses (32) (7) (6) (45) Noninterest income 100 185 13 298 Noninterest expense (a) 272 154 118 544 Income (loss) before income taxes 286 197 (176) 307 Income tax expense (benefit) 66 47 (42) 71 Net income (loss) $ 220 $ 150 $ (134) $ 236 Average assets $ 42,371 $ 21,503 $ 21,527 $ 85,401 (a) Includes $33 million in asset impairments related to IBKC merger integration efforts in the Corporate segment. Three Months Ended March 31, 2020 (Dollars in millions) Regional Banking Specialty Banking Corporate Consolidated Net interest income (expense) $ 194 $ 109 $ — $ 303 Provision for credit losses 98 54 2 154 Noninterest income 73 104 (3) 174 Noninterest expense 173 111 18 302 Income (loss) before income taxes (4) 48 (23) 21 Income tax expense (benefit) (2) 11 (4) 5 Net income (loss) $ (2) $ 37 $ (19) $ 16 Average assets $ 19,044 $ 16,890 $ 7,618 $ 43,552 Certain previously reported amounts have been reclassified to agree with current presentation. The following tables reflect a disaggregation of FHN’s noninterest income by major product line and reportable segment for the three months ended March 31, 2021 and 2020: Three months ended March 31, 2021 (Dollars in millions) Regional Banking Specialty Banking Corporate Consolidated Noninterest income: Fixed income (a) $ 1 $ 125 $ — $ 126 Mortgage banking and title income — 52 1 53 Deposit transactions and cash management 38 3 1 42 Brokerage, management fees and commissions 20 — — 20 Trust services and investment management 12 — — 12 Bankcard income 11 — — 11 Other income (b) 18 5 11 34 Total noninterest income $ 100 $ 185 $ 13 $ 298 (a) Includes $10 million of underwriting, portfolio advisory, and other noninterest income in scope of ASC 606, "Revenue From Contracts With Customers." (b) Includes other service charges, ATM and interchange fees, electronic banking fees, and insurance commissions in scope of ASC 606. Three months ended March 31, 2020 (Dollars in millions) Regional Banking Specialty Banking Corporate Consolidated Noninterest income: Fixed income (a) $ — $ 96 $ — $ 96 Mortgage banking and title income — 2 — 2 Deposit transactions and cash management 26 3 1 30 Brokerage, management fees and commissions 16 — — 16 Trust services and investment management 7 — — 7 Bankcard income 6 1 — 7 Other income (b) 18 2 (4) 16 Total noninterest income $ 73 $ 104 $ (3) $ 174 Certain previously reported amounts have been reclassified to agree with current presentation. (a) Includes $9 million of underwriting, portfolio advisory, and other noninterest income in scope of ASC 606, "Revenue From Contracts With Customers." (b) Includes other service charges, ATM and interchange fees, electronic banking fees, and insurance commissions in scope of ASC 606. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Variable Interest Entities [Abstract] | |
Summary Of VIEs Consolidated By FHN | 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, 2021 and December 31, 2020: (Dollars in millions) March 31, 2021 December 31, 2020 Assets: Other assets $ 200 $ 195 Total assets $ 200 $ 195 Liabilities: Other liabilities $ 173 $ 165 Total liabilities $ 173 $ 165 |
Summary 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, 2021 and 2020 for LIHTC investments accounted for under the proportional amortization method. Three Months Ended (Dollars in millions) 2021 2020 Income tax expense (benefit): Amortization of qualifying LIHTC investments $ 9 $ 6 Low income housing tax credits (9) (5) Other tax benefits related to qualifying LIHTC investments (3) (3) |
Summary Of VIEs Not Consolidated By FHN | The following table summarizes FHN’s nonconsolidated VIEs as of March 31, 2021: (Dollars in millions) Maximum Liability Classification Type Low income housing partnerships $ 345 $ 126 (a) Other tax credit investments (b) 68 42 Other assets Small issuer trust preferred holdings (c) 210 — Loans and leases On-balance sheet trust preferred securitization 32 83 (d) Holdings of agency mortgage-backed securities (c) 7,053 — (e) Commercial loan troubled debt restructurings (f) 169 — Loans and leases Proprietary trust preferred issuances (g) — 287 Term borrowings (a) Maximum loss exposure represents $219 million of current investments and $126 million of accrued contractual funding commitments. Accrued funding commitments represent unconditional contractual obligations for future funding events and are also recognized in Other liabilities. FHN currently expects to be required to fund these accrued commitments by the end of 2024. (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 $112 million classified as Loans and leases and $2 million classified as Trading securities which are offset by $83 million classified as Term borrowings. (e) Includes $0.6 billion classified as Trading securities and $6.5 billion classified as Securities available for sale. (f) Maximum loss exposure represents $166 million of current receivables and $3 million of contractual funding commitments on loans related to commercial borrowers involved in a troubled debt restructuring. (g) No exposure to loss due to nature of FHN's involvement. The following table summarizes FHN’s nonconsolidated VIEs as of December 31, 2020: (Dollars in millions) Maximum Liability Classification Type Low income housing partnerships $ 338 $ 132 (a) Other tax credit investments (b) 64 42 Other assets Small issuer trust preferred holdings (c) 210 — Loans and leases On-balance sheet trust preferred securitization 32 82 (d) Holdings of agency mortgage-backed securities (c) 7,063 — (e) Commercial loan troubled debt restructurings (f) 186 — Loans and leases Proprietary trust preferred issuances (g) — 287 Term borrowings (a) Maximum loss exposure represents $206 million of current investments and $132 million of accrued contractual funding commitments. Accrued funding commitments represent unconditional contractual obligations for future funding events and are also recognized in Other liabilities. FHN currently expects to be required to fund these accrued commitments by the end of 2024. (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 $112 million classified as Loans and leases and $2 million classified as Trading securities which are offset by $82 million classified as Term borrowings. (e) Includes $0.8 billion classified as Trading securities and $6.2 billion classified as Securities available for sale. (f) Maximum loss exposure represents $176 million of current receivables and $10 million of contractual funding commitments on loans related to commercial borrowers involved in a troubled debt restructuring. |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives Associated With Fixed Income Trading Activities | The following tables summarize derivatives associated with FHNF's trading activities as of March 31, 2021 and December 31, 2020: March 31, 2021 (Dollars in millions) Notional Assets Liabilities Customer interest rate contracts $ 3,877 $ 111 $ 60 Offsetting upstream interest rate contracts 3,877 6 13 Option contracts purchased 3 — — Forwards and futures purchased 15,777 12 108 Forwards and futures sold 16,495 119 8 December 31, 2020 (Dollars in millions) Notional Assets Liabilities Customer interest rate contracts $ 3,950 $ 207 $ 7 Offsetting upstream interest rate contracts 3,950 2 17 Forwards and futures purchased 10,795 62 — Forwards and futures sold 11,633 1 65 |
Derivatives Associated With Interest Rate Risk Management Activities | The following tables summarize FHN’s derivatives associated with interest rate risk management activities as of March 31, 2021 and December 31, 2020: March 31, 2021 (Dollars in millions) Notional Assets Liabilities Customer Interest Rate Contracts Hedging Hedging Instruments and Hedged Items: Customer interest rate contracts $ 7,057 $ 255 $ 30 Offsetting upstream interest rate contracts 7,057 4 24 December 31, 2020 (Dollars in millions) Notional Assets Liabilities Customer Interest Rate Contracts Hedging Hedging Instruments and Hedged Items: Customer interest rate contracts $ 6,868 $ 436 $ 1 Offsetting upstream interest rate contracts 6,868 5 35 |
Gains/(Losses) on Derivatives Associated with Interest Rate Risk Management Activities | The following table summarizes gains (losses) on FHN’s derivatives associated with interest rate risk management activities for the three months ended March 31, 2021 and 2020: Three Months Ended 2021 2020 (Dollars in millions) Gains (Losses) Gains (Losses) Customer Interest Rate Contracts Hedging Hedging Instruments and Hedged Items: Customer interest rate contracts (a) $ 214 $ 196 Offsetting upstream interest rate contracts (a) (214) (196) Debt Hedging Hedging Instruments: Interest rate swaps (b) $ — $ 5 Hedged Items: Term borrowings (a) (c) — (4) (a) Gains (losses) included in Other expense within the Consolidated Statements of Income. (b) Gains (losses) included in Interest expense. (c) Represents gains and losses attributable to changes in fair value due to interest rate risk as designated in ASC 815-20 hedging relationships. |
Derivative Associated With Cash Flow Hedges | The following tables summarize FHN’s derivative activities associated with cash flow hedges as of March 31, 2021 and December 31, 2020: March 31, 2021 (Dollars in millions) Notional Assets Liabilities Cash Flow Hedges Hedging Instruments: Interest rate contracts $ 1,250 $ 27 $ — Hedged Items: Variability in cash flows related to debt instruments (primarily loans) N/A $ 1,250 N/A December 31, 2020 (Dollars in millions) Notional Assets Liabilities Cash Flow Hedges Hedging Instruments: Interest rate contracts $ 1,250 $ 32 $ — Hedged Items: Variability in cash flows related to debt instruments (primarily loans) N/A $ 1,250 N/A |
Gains/(Losses) on Derivatives Associated with Cash Flow Hedges | The following table summarizes gains (losses) on FHN’s derivatives associated with cash flow hedges for the three months ended March 31, 2021 and 2020: Three Months Ended 2021 2020 (Dollars in millions) Gains (Losses) Gains (Losses) Cash Flow Hedges Hedging Instruments: Interest rate contracts (a) $ 8 $ 17 Gain (loss) recognized in Other comprehensive income (loss) (3) 13 Gain (loss) reclassified from AOCI into Interest income 1 — (a) Approximately $25 million of pre-tax gains are expected to be reclassified into earnings in the next twelve months. |
Schedule of Fair Value Derivative Instruments, Statements of Financial Performance and Financial Position, Location | The notional and fair values of these contracts are presented in the table below. Balances and activity for periods prior to the IBKC merger were not significant. March 31, 2021 (Dollars in millions) Notional Assets Liabilities Mortgage Banking Hedges Option contracts written $ 702 $ 9 $ 1 Forward contracts purchased 878 14 — December 31, 2020 (Dollars in millions) Notional Assets Liabilities Mortgage Banking Hedges Option contracts written $ 667 $ 20 $ — Forward contracts purchased 725 — 6 The following table summarizes gains (losses) on FHN's derivatives associated with mortgage banking activities for the three month period ended March 31, 2021. Three Months Ended 2021 (Dollars in millions) Gains (Losses) Mortgage Banking Hedges Option contracts written $ (11) Forward contracts purchased 23 |
Derivative Assets And Collateral Received | The following table provides details of derivative assets and collateral received as presented on the Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020: Gross amounts not offset in the Balance Sheets (Dollars in millions) Gross amounts Gross amounts Net amounts of Derivative Collateral Net amount Derivative assets: March 31, 2021 Interest rate derivative contracts $ 412 $ — $ 412 $ (42) $ (232) $ 138 Forward contracts 131 — 131 (33) (5) 93 $ 543 $ — $ 543 $ (75) $ (237) $ 231 December 31, 2020 Interest rate derivative contracts $ 702 $ — $ 702 $ (7) $ (327) $ 368 Forward contracts 63 — 63 (14) (20) 29 $ 765 $ — $ 765 $ (21) $ (347) $ 397 (a) Included in Other assets on the Consolidated Balance Sheets. As of March 31, 2021 and December 31, 2020, $16 million and $4 million, respectively, of derivative assets have been excluded from these tables because they are generally not subject to master netting or similar agreements. |
Derivative Liabilities and Collateral Pledged | The following table provides details of derivative liabilities and collateral pledged as presented on the Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020: Gross amounts not offset (Dollars in millions) Gross amounts Gross amounts Net amounts of Derivative Collateral Net amount Derivative liabilities: March 31, 2021 Interest rate derivative contracts $ 128 $ — $ 128 $ (42) $ (12) $ 74 Forward contracts 115 — 115 (33) (34) 48 $ 243 $ — $ 243 $ (75) $ (46) $ 122 December 31, 2020 Interest rate derivative contracts $ 60 $ — $ 60 $ (7) $ (31) $ 22 Forward contracts 65 — 65 (14) (51) — $ 125 $ — $ 125 $ (21) $ (82) $ 22 (a) Included in Other liabilities on the Consolidated Balance Sheets. As of March 31, 2021 and December 31, 2020, $21 million and $22 million, respectively, of derivative liabilities (primarily Visa-related derivatives) have been excluded from these tables because they are generally not subject to master netting or similar agreements. |
Master Netting and Similar Ag_2
Master Netting and Similar Agreements—Repurchase, Reverse Repurchase, and Securities Borrowing Transactions (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Offsetting [Abstract] | |
Securities Purchased Under Agreements To Resell And Collateral Pledged By Counterparties | The following table provides details of securities purchased under agreements to resell and collateral pledged by counterparties as of March 31, 2021 and December 31, 2020: Gross amounts not offset in the (Dollars in millions) Gross amounts Gross amounts Net amounts of Offsetting Securities collateral Net amount Securities purchased under agreements to resell: March 31, 2021 $ 463 $ — $ 463 $ — $ (461) $ 2 December 31, 2020 380 — 380 — (379) 1 |
Securities Sold Under Agreements To Repurchase And Collateral Pledged By Company | The following table provides details of securities sold under agreements to repurchase and collateral pledged by FHN as of March 31, 2021 and December 31, 2020: Gross amounts not offset in the (Dollars in millions) Gross amounts Gross amounts Net amounts of Offsetting Securities/ Net amount Securities sold under agreements to repurchase: March 31, 2021 $ 1,098 $ — $ 1,098 $ — $ (1,098) $ — December 31, 2020 1,187 — 1,187 — (1,187) — |
Schedule of the Remaining Contractual Maturity by Collateral Type of Securities Sold Under Agreements To Repurchase | The following tables provide details, by collateral type, of the remaining contractual maturity of securities sold under agreements to repurchase as of March 31, 2021 and December 31, 2020: March 31, 2021 (Dollars in millions) Overnight and Up to 30 Days Total Securities sold under agreements to repurchase: U.S. treasuries $ 294 $ — $ 294 Government agency issued MBS 584 — 584 Government agency issued CMO 13 — 13 Other U.S. government agencies 82 — 82 Government guaranteed loans (SBA and USDA) 125 — 125 Total securities sold under agreements to repurchase $ 1,098 $ — $ 1,098 December 31, 2020 (Dollars in millions) Overnight and Up to 30 Days Total Securities sold under agreements to repurchase: U.S. treasuries $ 284 $ — $ 284 Government agency issued MBS 616 — 616 Government agency issued CMO 10 — 10 Other U.S. government agencies 151 — 151 Government guaranteed loans (SBA and USDA) 126 — 126 Total securities sold under agreements to repurchase $ 1,187 $ — $ 1,187 |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis | The following tables present the balances of assets and liabilities measured at fair value on a recurring basis as of March 31, 2021 and December 31, 2020: March 31, 2021 (Dollars in millions) Level 1 Level 2 Level 3 Total Trading securities: U.S. treasuries $ — $ 51 $ — $ 51 Government agency issued MBS — 384 — 384 Government agency issued CMO — 190 — 190 Other U.S. government agencies — 237 — 237 States and municipalities — 10 — 10 Corporate and other debt — 204 — 204 Total trading securities — 1,076 — 1,076 Loans held for sale (elected fair value) — 437 12 449 Loans held for investment (elected fair value) — — 17 17 Securities available for sale: U.S. treasuries — 610 — 610 Government agency issued MBS — 4,038 — 4,038 Government agency issued CMO — 2,441 — 2,441 Other U.S. government agencies — 725 — 725 States and municipalities — 475 — 475 Corporate and other debt — 40 — 40 Interest-only strips (elected fair value) — — 22 22 Total securities available for sale — 8,329 22 8,351 Other assets: Deferred compensation mutual funds 122 — — 122 Equity, mutual funds, and other 25 — — 25 Derivatives, forwards and futures 145 — — 145 Derivatives, interest rate contracts — 414 — 414 Derivatives, other — 2 — 2 Total other assets 292 416 — 708 Total assets $ 292 $ 10,258 $ 51 $ 10,601 Trading liabilities: U.S. treasuries $ — $ 361 $ — $ 361 Other U.S.government agencies — 20 — 20 Government agency issued MBS — 8 — 8 Corporate and other debt — 65 — 65 Total trading liabilities — 454 — 454 Other liabilities: Derivatives, forwards and futures 116 — — 116 Derivatives, interest rate contracts — 128 — 128 Derivatives, other — 2 21 23 Total other liabilities 116 130 21 267 Total liabilities $ 116 $ 584 $ 21 $ 721 December 31, 2020 (Dollars in millions) Level 1 Level 2 Level 3 Total Trading securities: U.S. treasuries $ — $ 81 $ — $ 81 Government agency issued MBS — 633 — 633 Government agency issued CMO — 212 — 212 Other U.S. government agencies — 62 — 62 States and municipalities — 7 — 7 Corporate and other debt — 181 — 181 Total trading securities — 1,176 — 1,176 Loans held for sale (elected fair value) — 393 12 405 Loans held for investment (elected fair value) — — 16 16 Securities available for sale: U.S. treasuries — 613 — 613 Government agency issued MBS — 3,812 — 3,812 Government agency issued CMO — 2,406 — 2,406 Other U.S. government agencies — 684 — 684 States and municipalities — 460 — 460 Corporate and other debt — 40 — 40 Interest-only strips (elected fair value) — — 32 32 Total securities available for sale — 8,015 32 8,047 Other assets: Deferred compensation mutual funds 118 — — 118 Equity, mutual funds, and other 25 — — 25 Derivatives, forwards and futures 63 — — 63 Derivatives, interest rate contracts — 702 — 702 Derivatives, other — 4 — 4 Total other assets 206 706 — 912 Total assets $ 206 $ 10,290 $ 60 $ 10,556 Trading liabilities: U.S. treasuries $ — $ 307 $ — $ 307 Government agency issued MBS — 3 — 3 Corporates and other debt — 43 — 43 Total trading liabilities — 353 — 353 Other liabilities: Derivatives, forwards and futures 71 — — 71 Derivatives, interest rate contracts — 60 — 60 Derivatives, other — 4 14 18 Total other liabilities 71 64 14 149 Total liabilities $ 71 $ 417 $ 14 $ 502 |
Summary 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, 2021 and 2020 on a recurring basis are summarized as follows: Three Months Ended March 31, 2021 (Dollars in millions) Interest- only strips- AFS Loans held Loans held for investment Net derivative Balance on January 1, 2021 $ 32 $ 12 $ 16 $ (14) Total net gains (losses) included in net income 5 1 — (9) Purchases — — — — Sales (27) — — — Settlements — (1) (2) 2 Net transfers into (out of) Level 3 12 (b) — 3 — Balance on March 31, 2021 $ 22 $ 12 $ 17 $ (21) Net unrealized gains (losses) included in net income $ 2 (c) $ 1 (a) $ — $ (9) (d) Three Months Ended March 31, 2020 (Dollars in millions) Trading Interest-only-strips-AFS Loans held for sale Net derivative Balance on January 1, 2020 $ 1 $ 19 $ 14 $ (23) Total net gains (losses) included in net income — (1) — — Purchases — 5 — — Sales — (8) — — Settlements — — (1) 2 Net transfers into (out of) Level 3 — 8 (b) — — Balance on March 31, 2020 $ 1 $ 23 $ 13 $ (21) Net unrealized gains (losses) included in net income $ — (a) $ (1) (c) $ — (a) $ — (d) (a) Primarily included in mortgage banking and title income on the Consolidated Statements of Income. (b) Transfers into interest-only strips - AFS level 3 measured on a recurring basis reflect movements from loans held for sale (Level 2 nonrecurring). (c) Primarily included in Fixed income on the Consolidated Statements of Income. |
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, 2021, and December 31, 2020, respectively, the following tables provide the level of valuation assumptions used to determine each adjustment and the related carrying value. Carrying value at March 31, 2021 (Dollars in millions) Level 1 Level 2 Level 3 Total Loans held for sale—SBAs and USDA $ — $ 299 $ 1 $ 300 Loans held for sale—first mortgages — — 1 1 Loans and leases (a) — — 69 69 OREO (b) — — 11 11 Other assets (c) — — 11 11 Carrying value at December 31, 2020 (Dollars in millions) Level 1 Level 2 Level 3 Total Loans held for sale—SBAs and USDA $ — $ 508 $ 1 $ 509 Loans held for sale—first mortgages — — 1 1 Loans and leases (a) — — 77 77 OREO (b) — — 15 15 Other assets (c) — — 9 9 (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. (c) Represents tax credit investments accounted for under the equity method. |
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, 2021 and 2020: Net gains (losses) (Dollars in millions) 2021 2020 Loans held for sale—SBAs and USDA $ (1) $ (1) Loans and leases (a) (7) (5) $ (8) $ (6) (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 tables provide information regarding the unobservable inputs utilized in determining the fair value of Level 3 recurring and non-recurring measurements as of March 31, 2021 and December 31, 2020: (Dollars in millions) Values Utilized Level 3 Class Fair Value at March 31, 2021 Valuation Techniques Unobservable Input Range Weighted Average (d) Available for sale securities SBA-interest only strips $ 22 Discounted cash flow Constant prepayment rate 12% 12% Bond equivalent yield 10% - 13% 11% Loans held for sale - residential real estate $ 13 Discounted cash flow Prepayment speeds - First mortgage 4% - 13% 5% Foreclosure losses 57% - 65% 62% Loss severity trends - First mortgage 9% - 17% of UPB 12% Loans held for sale - unguaranteed interest in SBA loans $ 1 Discounted cash flow Constant prepayment rate 8% - 12% 10% Bond equivalent yield 8% 8% Loans held for investment $ 17 Discounted cash flow Constant prepayment rate 0% - 46% 31% Constant default rate 0% - 15% 1% Loss severity trends 0% - 93% 7% Derivative liabilities, other $ 21 Discounted cash flow Visa covered litigation resolution amount $5.4 billion - $6.0 billion $5.8 billion Probability of resolution scenarios 10% - 50% 16% Time until resolution 12 - 36 months 26 months Loans and leases (a) $ 69 Appraisals from comparable properties Marketability adjustments for specific properties 0% - 10% of appraisal NM Other collateral valuations Borrowing base certificates adjustment 20% - 50% of gross value NM Financial Statements/Auction values adjustment 0% - 25% of reported value NM OREO (b) $ 11 Appraisals from comparable properties Adjustment for value changes since appraisal 0% - 10% of appraisal NM Other assets (c) $ 11 Discounted cash flow Adjustments to current sales yields for specific properties 0% - 15% adjustment to yield NM Appraisals from comparable properties Marketability adjustments for specific properties 0% - 25% 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) Represents tax credit investments accounted for under the equity method. (d) 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 Class Fair Value at December 31, 2020 Valuation Techniques Unobservable Input Range Weighted Average (d) Available for sale securities SBA-interest only strips $ 32 Discounted cash flow Constant prepayment rate 12% 12% Bond equivalent yield 15% - 17% 15% Loans held for sale - residential real estate $ 13 Discounted cash flow Prepayment speeds - First mortgage 5% - 15% 5% Foreclosure losses 59% - 70% 63% Loss severity trends - First mortgage 3% - 19% of UPB 12% Loans held for sale - unguaranteed interest in SBA loans $ 1 Discounted cash flow Constant prepayment rate 8% - 12% 10% Bond equivalent yield 7% - 8% 7% Loans held for investment $ 16 Discounted cash flow Constant prepayment rate 0% - 26% 11% Constant default rate 0% - 14% 1% Loss severity trends 0% - 100% 11% Derivative liabilities, other $ 14 Discounted cash flow Visa covered litigation resolution amount $5.4 billion - $6.0 billion $5.8 billion Probability of resolution scenarios 10% - 50% 16% Time until resolution 3 - 27 months 19 months Loans and leases (a) $ 77 Appraisals from comparable properties Marketability adjustments for specific properties 0% - 10% of appraisal NM Other collateral valuations Borrowing base certificates adjustment 20% - 50% of gross value NM Financial Statements/Auction values adjustment 0% - 25% of reported value NM OREO (b) $ 15 Appraisals from comparable properties Adjustment for value changes since appraisal 0% - 10% of appraisal NM Other assets (c) $ 9 Discounted cash flow Adjustments to current sales yields for specific properties 0% - 15% adjustment to yield NM Appraisals from comparable properties Marketability adjustments for specific properties 0% - 25% 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) Represents tax credit investments accounted for under the equity method. (d) Weighted averages are determined by the relative fair value of the instruments or the relative contribution to an instrument's fair value. |
Summary Of Differences Between The Fair Value Carrying Amount Of Mortgages Held-For-Sale And Aggregate Unpaid Principal Amount | The following tables reflect the differences between the fair value carrying amount of residential real estate loans held for sale and held for investment measured at fair value in accordance with management’s election and the aggregate unpaid principal amount FHN is contractually entitled to receive at maturity. March 31, 2021 (Dollars in millions) Fair value Aggregate Fair value carrying amount Residential real estate loans held for sale reported at fair value: Total loans $ 449 $ 445 $ 4 Nonaccrual loans 2 5 (3) Loans held for investment reported at fair value: Total loans $ 17 $ 17 $ — Nonaccrual loans 1 1 — December 31, 2020 (Dollars in millions) Fair value Aggregate Fair value carrying amount Residential real estate loans held for sale reported at fair value: Total loans $ 405 $ 442 $ (37) Nonaccrual loans 2 5 (3) Loans held for investment reported at fair value: Total loans $ 16 $ 17 $ (1) Nonaccrual loans 1 1 — |
Changes In Fair Value Of Assets And Liabilities Which Fair Value Option Included In Current Period Earnings | Assets and liabilities accounted for under the fair value election are initially measured at fair value with subsequent changes in fair value recognized in earnings. Such changes in the fair value of assets and liabilities for which FHN elected the fair value option are included in current period earnings with classification in the income statement line item reflected in the following table: Three Months Ended (Dollars in millions) 2021 2020 Changes in fair value included in net income: Mortgage banking noninterest income Loans held for sale $ (9) $ — |
Summary Of Book Value And Estimated Fair Value Of Financial Instruments | The following tables summarize the book value and estimated fair value of financial instruments recorded in the Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020: March 31, 2021 Book Fair Value (Dollars in millions) Level 1 Level 2 Level 3 Total Assets: Loans and leases, net of allowance for loan and lease losses Commercial: Commercial, financial and industrial $ 33,509 $ — $ — $ 33,249 $ 33,249 Commercial real estate 12,238 — — 12,265 12,265 Consumer: Consumer real estate 10,831 — — 11,283 11,283 Credit card and other 1,108 — — 1,134 1,134 Total loans and leases, net of allowance for loan and lease losses 57,686 — — 57,931 57,931 Short-term financial assets: Interest-bearing deposits with banks 11,635 11,635 — — 11,635 Federal funds sold 463 — 463 — 463 Securities purchased under agreements to resell 57 — 57 — 57 Total short-term financial assets 12,155 11,635 520 — 12,155 Trading securities (a) 1,076 — 1,076 — 1,076 Loans held for sale: Mortgage loans (elected fair value) (a) 449 — 437 12 449 USDA & SBA loans - LOCOM 300 — 299 1 300 Other loans - LOCOM 4 — 4 — 4 Mortgage loans - LOCOM 58 — — 58 58 Total loans held for sale 811 — 740 71 811 Securities available for sale (a) 8,351 — 8,329 22 8,351 Derivative assets (a) 561 145 416 — 561 Other assets: Tax credit investments 410 — — 400 400 Deferred compensation mutual funds 122 122 — — 122 Equity, mutual funds, and other (b) 262 25 — 237 262 Total other assets 794 147 — 637 784 Total assets $ 81,434 $ 11,927 $ 11,081 $ 58,661 $ 81,669 Liabilities: Defined maturity deposits $ 4,653 $ — $ 4,664 $ — $ 4,664 Trading liabilities (a) 454 — 454 — 454 Short-term financial liabilities: Federal funds purchased 982 — 982 — 982 Securities sold under agreements to repurchase 1,098 — 1,098 — 1,098 Other short-term borrowings 122 — 122 — 122 Total short-term financial liabilities 2,202 — 2,202 — 2,202 Term borrowings: Real estate investment trust-preferred 46 — — 47 47 Term borrowings—new market tax credit investment 45 — — 45 45 Secured borrowings 15 — — 15 15 Junior subordinated debentures 239 — — 237 237 Other long term borrowings 1,326 — 1,462 — 1,462 Total term borrowings 1,671 — 1,462 344 1,806 Derivative liabilities (a) 265 116 130 21 267 Total liabilities $ 9,245 $ 116 $ 8,912 $ 365 $ 9,393 (a) Classes are detailed in the recurring and nonrecurring measurement tables. (b) Level 1 primarily consists of mutual funds with readily determinable fair values. Level 3 includes restricted investments in FHLB-Cincinnati stock of $34 million and FRB stock of $202 million. December 31, 2020 Book Fair Value (Dollars in millions) Level 1 Level 2 Level 3 Total Assets: Loans and leases and allowance for loan and lease losses Commercial: Commercial, financial and industrial $ 32,651 $ — $ — $ 32,582 $ 32,582 Commercial real estate 12,033 — — 12,079 12,079 Consumer: Consumer real estate 11,483 — — 11,903 11,903 Credit card and other 1,102 — — 1,131 1,131 Total loans and leases, net of allowance for loan and lease losses 57,269 — — 57,695 57,695 Short-term financial assets: Interest-bearing deposits with banks 8,351 8,351 — — 8,351 Federal funds sold 65 — 65 — 65 Securities purchased under agreements to resell 380 — 380 — 380 Total short-term financial assets 8,796 8,351 445 — 8,796 Trading securities (a) 1,176 — 1,176 — 1,176 Loans held for sale: Mortgage loans (elected fair value) (a) 405 — 393 12 405 USDA & SBA loans - LOCOM 509 — 511 1 512 Other loans - LOCOM 31 — 31 — 31 Mortgage loans - LOCOM 77 — — 77 77 Total loans held for sale 1,022 — 935 90 1,025 Securities available for sale (a) 8,047 — 8,015 32 8,047 Derivative assets (a) 770 63 706 — 769 Other assets: Tax credit investments 400 — — 371 371 Deferred compensation mutual funds 118 118 — — 118 Equity, mutual funds, and other (b) 288 25 — 263 288 Total other assets 806 143 — 634 777 Total assets $ 77,886 $ 8,557 $ 11,277 $ 58,451 $ 78,285 Liabilities: Defined maturity deposits $ 5,070 $ — $ 5,083 $ — $ 5,083 Trading liabilities (a) 353 — 353 — 353 Short-term financial liabilities: Federal funds purchased 845 — 845 — 845 Securities sold under agreements to repurchase 1,187 — 1,187 — 1,187 Other short-term borrowings 166 — 166 — 166 Total short-term financial liabilities 2,198 — 2,198 — 2,198 Term borrowings: Real estate investment trust-preferred 46 — — 47 47 Term borrowings—new market tax credit investment 45 — — 45 45 Secured borrowings 15 — — 15 15 Junior subordinated debentures 238 — — 223 223 Other long term borrowings 1,326 — 1,455 — 1,455 Total term borrowings 1,670 — 1,455 330 1,785 Derivative liabilities (a) 149 71 64 14 149 Total liabilities $ 9,440 $ 71 $ 9,153 $ 344 $ 9,568 (a) Classes are detailed in the recurring and nonrecurring measurement tables. (b) Level 1 primarily consists of mutual funds with readily determinable fair values. Level 3 includes restricted investments in FHLB-Cincinnati stock of $61 million and FRB stock of $202 million. The following table presents the contractual amount and fair value of unfunded loan commitments and standby and other commitments as of March 31, 2021 and December 31, 2020: Contractual Amount Fair Value (Dollars in millions) March 31, 2021 December 31, 2020 March 31, 2021 December 31, 2020 Unfunded Commitments: Loan commitments $ 20,881 $ 20,796 $ 1 $ 2 Standby and other commitments 720 751 6 6 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Narrative (Details) $ in Millions | Jul. 01, 2020USD ($)statenumberNewPreferredStockSeriesofficeshares | Mar. 31, 2021USD ($)shares | Dec. 31, 2020USD ($)shares | Jul. 17, 2020branch | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Business Acquisition [Line Items] | ||||||
Number of common stock issued | shares | 243,000,000 | 552,374,489 | 555,030,652 | |||
Number of new series of preferred stock | numberNewPreferredStockSeries | 3 | |||||
Goodwill | $ 1,511 | $ 1,511 | $ 1,511 | $ 1,433 | ||
IBERIABANK (IBKC) | ||||||
Business Acquisition [Line Items] | ||||||
Purchase accounting gain | $ 534 | 1 | 533 | |||
Goodwill | (534) | |||||
Truist Bank Branches | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 78 | $ 78 | ||||
Number of bank branches | branch | 30 | |||||
IBERIABANK (IBKC) | ||||||
Business Acquisition [Line Items] | ||||||
Equity interest issued, value assigned | $ 2,500 | |||||
Number of offices | office | 319 | |||||
Number of states | state | 12 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Purchase Price Allocation (Details) - USD ($) $ in Millions | Jul. 01, 2020 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Consideration paid: | |||||
Goodwill | $ 1,511 | $ 1,511 | $ 1,511 | $ 1,433 | |
IBERIABANK (IBKC) | |||||
Assets: | |||||
Cash and due from banks | $ 395 | ||||
Interest-bearing deposits with banks | 1,683 | ||||
Securities available for sale at fair value | 3,544 | ||||
Loans held for sale | 320 | ||||
Loans and leases (a) | 25,921 | ||||
Allowance for loan and lease losses | (284) | ||||
Other intangible assets | 240 | ||||
Premises and equipment | 311 | ||||
OREO | 9 | ||||
Other assets | 1,156 | ||||
Total assets acquired | 33,295 | ||||
Liabilities: | |||||
Deposits | 28,232 | ||||
Short-term borrowings | 209 | ||||
Term borrowings | 1,200 | ||||
Other liabilities | 618 | ||||
Total liabilities assumed | 30,259 | ||||
Net assets acquired | 3,036 | ||||
Consideration paid: | |||||
Total consideration paid | 2,502 | ||||
Goodwill | (534) | ||||
IBERIABANK (IBKC) | Equity awards | |||||
Consideration paid: | |||||
Consideration for outstanding common stock | 28 | ||||
IBERIABANK (IBKC) | Commercial | Sales-Type And Direct Financing Leases | |||||
Assets: | |||||
Loans and leases (a) | 1,300 | ||||
IBERIABANK (IBKC) | Common Stock | |||||
Consideration paid: | |||||
Consideration for outstanding common stock | 2,243 | ||||
IBERIABANK (IBKC) | Preferred Stock | |||||
Consideration paid: | |||||
Consideration for outstanding common stock | $ 231 |
Acquisitions and Divestitures_3
Acquisitions and Divestitures - Merger and Integration Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Business Acquisition [Line Items] | ||
Merger and integration expense | $ 70 | $ 6 |
Personal expense | ||
Business Acquisition [Line Items] | ||
Merger and integration expense | 21 | 1 |
Legal and professional fees | ||
Business Acquisition [Line Items] | ||
Merger and integration expense | 3 | 2 |
Net occupancy expense | ||
Business Acquisition [Line Items] | ||
Merger and integration expense | 3 | 0 |
Other expense | ||
Business Acquisition [Line Items] | ||
Merger and integration expense | $ 43 | $ 3 |
Investment Securities - Schedul
Investment Securities - Schedule of Amortized Cost, Unrealized Gains/(Losses) and Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 8,322 | |
Securities available for sale at fair value | 8,351 | $ 8,047 |
Securities pledged as collateral | 7,000 | 6,400 |
U.S. treasuries | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 610 | 613 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Securities available for sale at fair value | 610 | 613 |
Government agency issued MBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4,009 | 3,722 |
Gross Unrealized Gains | 68 | 92 |
Gross Unrealized Losses | (39) | (2) |
Securities available for sale at fair value | 4,038 | 3,812 |
Government agency issued CMO | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,463 | 2,380 |
Gross Unrealized Gains | 19 | 29 |
Gross Unrealized Losses | (41) | (3) |
Securities available for sale at fair value | 2,441 | 2,406 |
Other U.S. government agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 733 | 672 |
Gross Unrealized Gains | 5 | 12 |
Gross Unrealized Losses | (13) | 0 |
Securities available for sale at fair value | 725 | 684 |
Corporate and other debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 40 | 40 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Losses | 0 | (1) |
Securities available for sale at fair value | 40 | 40 |
States and municipalities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 467 | 445 |
Gross Unrealized Gains | 9 | 15 |
Gross Unrealized Losses | (1) | 0 |
Securities available for sale at fair value | 475 | 460 |
Securities available-for-sale, excluding interest only strip: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 8,322 | 7,872 |
Gross Unrealized Gains | 101 | 149 |
Gross Unrealized Losses | (94) | (6) |
Securities available for sale at fair value | 8,329 | 8,015 |
Interest- only strips- AFS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities available for sale at fair value | $ 22 | $ 32 |
Investment Securities - Sched_2
Investment Securities - Schedule Of Amortized Cost And Fair Value By Contractual Maturity (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Available-for-Sale, Amortized Cost | ||
Within 1 year | $ 758 | |
After 1 year through 5 years | 146 | |
After 5 years through 10 years | 345 | |
After 10 years | 601 | |
Subtotal | 1,850 | |
Government agency issued MBS and CMO | 6,472 | |
Securities available for sale, amortized cost | 8,322 | |
Available-for-Sale, Fair Value | ||
Within 1 year | 759 | |
After 1 year through 5 years | 148 | |
After 5 years through 10 years | 348 | |
After 10 years | 617 | |
Subtotal | 1,872 | |
Government agency issued MBS and CMO | 6,479 | |
Securities available-for-sale | $ 8,351 | $ 8,047 |
Investment Securities - Sched_3
Investment Securities - Schedule Of Investments Within The Available For Sale Portfolio That Had Unrealized Losses (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Schedule of Investments [Line Items] | ||
Less than 12 months | $ 3,767 | $ 1,400 |
12 months or longer | 0 | 0 |
Total fair value | 3,767 | 1,400 |
Unrealized Losses | ||
Less than 12 months | (94) | (6) |
12 months or longer | 0 | 0 |
Total unrealized losses | (94) | (6) |
U.S. treasuries | ||
Schedule of Investments [Line Items] | ||
Less than 12 months | 307 | |
12 months or longer | 0 | |
Total fair value | 307 | |
Unrealized Losses | ||
Less than 12 months | 0 | |
12 months or longer | 0 | |
Total unrealized losses | 0 | |
Government agency issued MBS | ||
Schedule of Investments [Line Items] | ||
Less than 12 months | 1,772 | 426 |
12 months or longer | 0 | 0 |
Total fair value | 1,772 | 426 |
Unrealized Losses | ||
Less than 12 months | (39) | (2) |
12 months or longer | 0 | 0 |
Total unrealized losses | (39) | (2) |
Government agency issued CMO | ||
Schedule of Investments [Line Items] | ||
Less than 12 months | 1,508 | 586 |
12 months or longer | 0 | 0 |
Total fair value | 1,508 | 586 |
Unrealized Losses | ||
Less than 12 months | (41) | (3) |
12 months or longer | 0 | 0 |
Total unrealized losses | (41) | (3) |
Other U.S. government agencies | ||
Schedule of Investments [Line Items] | ||
Less than 12 months | 405 | 80 |
12 months or longer | 0 | 0 |
Total fair value | 405 | 80 |
Unrealized Losses | ||
Less than 12 months | (13) | (1) |
12 months or longer | 0 | 0 |
Total unrealized losses | (13) | (1) |
States and municipalities | ||
Schedule of Investments [Line Items] | ||
Less than 12 months | 82 | 1 |
12 months or longer | 0 | 0 |
Total fair value | 82 | 1 |
Unrealized Losses | ||
Less than 12 months | (1) | 0 |
12 months or longer | 0 | 0 |
Total unrealized losses | $ (1) | $ 0 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Marketable Securities [Abstract] | |||
Available-for-sale, accrued interest, after allowance for credit loss | $ 24 | $ 22 | |
Carrying amount of equity investments without a readily determinable fair value | 70 | $ 57 | |
Unrealized gain for equity investments with readily determinable fair values | $ 3 | $ 3 |
Loans and Leases - Narrative (D
Loans and Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accrued interest | $ 182 | $ 180 | ||
Net loans and leases | 57,686 | 57,269 | ||
Loans and leases | 58,600 | 58,232 | ||
Troubled debt restructurings loans | 288 | 307 | ||
Allowance for loan and lease losses | 914 | 963 | $ 444 | $ 307 |
C&I | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Collateral for secured borrowings | 247 | 167 | ||
Allowance for credit loss, writeoff, collateral | 13 | |||
Allowance For TDRs To Recorded Investment Of TDRs | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan and lease losses | $ 11 | $ 12 | ||
Ratio of the allowance for loan losses to loans | 4.00% | 4.00% | ||
Loans Held For Sale, Residential Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Troubled debt restructurings loans | $ 41 | $ 42 | ||
Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases | 33,951 | 33,104 | ||
Commercial | Commercial and industrial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases | 33,951 | 33,104 | ||
Allowance for loan and lease losses | 442 | 453 | 255 | 142 |
Commercial | Commercial and industrial | Finance And Insurance Companies | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases | 3,100 | |||
Commercial | Commercial and industrial | Loans to mortgage companies | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases | $ 5,530 | 5,404 | ||
Percentage contributed | 25.00% | |||
Commercial | Commercial and industrial | C&I | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases | $ 28,421 | 27,700 | ||
Collateral for secured borrowings | 180 | |||
Commercial | Loans to mortgage companies | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases | 5,530 | 5,404 | ||
Commercial | Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases | 12,470 | 12,275 | ||
Allowance for loan and lease losses | 232 | 242 | 48 | 29 |
Commercial | Commercial real estate | CRE | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases | 12,470 | 12,275 | ||
Collateral for secured borrowings | 67 | |||
Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases | 11,053 | 11,725 | ||
Consumer | Consumer Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases | 11,053 | 11,725 | ||
Allowance for loan and lease losses | 222 | 242 | $ 122 | $ 121 |
Consumer | Consumer Real Estate | HELOC | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases | 2,270 | 2,420 | ||
Collateral for secured borrowings | 9 | 9 | ||
Consumer | Consumer Real Estate | R/E Installment Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases | 8,783 | 9,305 | ||
Collateral for secured borrowings | 24 | 26 | ||
Asset Pledged as Collateral | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Net loans and leases | $ 38.1 | $ 38,600 |
Loans and Leases - Schedule Of
Loans and Leases - Schedule Of Loans By Portfolio Segment (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases | $ 58,600 | $ 58,232 | ||
Allowance for loan and lease losses | (914) | (963) | $ (444) | $ (307) |
Net loans and leases | 57,686 | 57,269 | ||
Equipment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Property, plant, and equipment and finance lease right-of-use asset | 614 | 587 | ||
Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases | 33,951 | 33,104 | ||
Commercial | Commercial and Industrial, Excluding Loans to Mortgage Companies | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases | 28,421 | 27,700 | ||
Commercial | Loans to mortgage companies | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases | 5,530 | 5,404 | ||
Commercial | Commercial and industrial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases | 33,951 | 33,104 | ||
Allowance for loan and lease losses | (442) | (453) | (255) | (142) |
Commercial | Commercial and industrial | Paycheck Protection Plan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases | 5,100 | 4,100 | ||
Commercial | Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases | 12,470 | 12,275 | ||
Allowance for loan and lease losses | (232) | (242) | (48) | (29) |
Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases | 11,053 | 11,725 | ||
Consumer | HELOC | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases | 2,270 | 2,420 | ||
Consumer | Real estate installment loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases | 8,783 | 9,305 | ||
Consumer | Credit Card and Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases | 1,126 | 1,128 | ||
Allowance for loan and lease losses | $ (18) | $ (26) | $ (19) | $ (15) |
Loans and Leases - Balances Of
Loans and Leases - Balances Of Commercial Loan Portfolio Classes, Disaggregated By PD Grade (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Mar. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, net of unearned income | $ 58,232 | $ 58,600 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, net of unearned income | 33,104 | 33,951 |
Commercial and industrial | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 9,331 | 2,408 |
Financing receivable, originated year two | 5,308 | 8,131 |
Financing receivable, originated year three | 2,812 | 4,717 |
Financing receivable, originated year four | 1,829 | 2,349 |
Financing receivable, originated year five | 1,240 | 1,663 |
Financing receivable, originated prior to year five | 2,267 | 3,213 |
LMC, Non-Revolving Loans | 5,404 | 5,530 |
Revolving Loans | 4,793 | 5,872 |
Revolving Loans converted to term loans | 120 | 68 |
Total loans, net of unearned income | 33,104 | 33,951 |
Revolving loans converted to term loan during period | 50 | |
Commercial and industrial | PD Grade 1 -12 | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 9,060 | 2,368 |
Financing receivable, originated year two | 5,138 | 7,915 |
Financing receivable, originated year three | 2,628 | 4,572 |
Financing receivable, originated year four | 1,748 | 2,174 |
Financing receivable, originated year five | 1,161 | 1,600 |
Financing receivable, originated prior to year five | 2,145 | 3,038 |
LMC, Non-Revolving Loans | 5,404 | 5,530 |
Revolving Loans | 4,571 | 5,535 |
Revolving Loans converted to term loans | 60 | 14 |
Total loans, net of unearned income | 31,915 | 32,746 |
Commercial and industrial | PD Grade 13 | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 89 | 5 |
Financing receivable, originated year two | 93 | 68 |
Financing receivable, originated year three | 70 | 65 |
Financing receivable, originated year four | 31 | 51 |
Financing receivable, originated year five | 37 | 28 |
Financing receivable, originated prior to year five | 64 | 81 |
LMC, Non-Revolving Loans | 0 | 0 |
Revolving Loans | 127 | 189 |
Revolving Loans converted to term loans | 1 | 7 |
Total loans, net of unearned income | 512 | 494 |
Commercial and industrial | PD Grade 14 15 16 | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 182 | 35 |
Financing receivable, originated year two | 77 | 148 |
Financing receivable, originated year three | 114 | 80 |
Financing receivable, originated year four | 50 | 124 |
Financing receivable, originated year five | 42 | 35 |
Financing receivable, originated prior to year five | 58 | 94 |
LMC, Non-Revolving Loans | 0 | 0 |
Revolving Loans | 95 | 148 |
Revolving Loans converted to term loans | 59 | 47 |
Total loans, net of unearned income | 677 | 711 |
Commercial real estate | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, net of unearned income | 12,275 | 12,470 |
Commercial real estate | CRE | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 2,555 | 514 |
Financing receivable, originated year two | 3,348 | 2,438 |
Financing receivable, originated year three | 1,888 | 3,400 |
Financing receivable, originated year four | 1,257 | 1,811 |
Financing receivable, originated year five | 1,044 | 1,144 |
Financing receivable, originated prior to year five | 1,887 | 2,818 |
Revolving Loans | 277 | 345 |
Revolving Loans converted to term loans | 19 | 0 |
Total loans, net of unearned income | 12,275 | 12,470 |
Commercial real estate | PD Grade 1 -12 | CRE | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 2,477 | 514 |
Financing receivable, originated year two | 3,311 | 2,346 |
Financing receivable, originated year three | 1,750 | 3,350 |
Financing receivable, originated year four | 1,140 | 1,612 |
Financing receivable, originated year five | 946 | 1,024 |
Financing receivable, originated prior to year five | 1,800 | 2,652 |
Revolving Loans | 259 | 320 |
Revolving Loans converted to term loans | 19 | 0 |
Total loans, net of unearned income | 11,702 | 11,818 |
Commercial real estate | PD Grade 13 | CRE | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 48 | 0 |
Financing receivable, originated year two | 24 | 74 |
Financing receivable, originated year three | 117 | 38 |
Financing receivable, originated year four | 75 | 178 |
Financing receivable, originated year five | 71 | 77 |
Financing receivable, originated prior to year five | 54 | 109 |
Revolving Loans | 0 | 0 |
Revolving Loans converted to term loans | 0 | 0 |
Total loans, net of unearned income | 389 | 476 |
Commercial real estate | PD Grade 14 15 16 | CRE | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 30 | 0 |
Financing receivable, originated year two | 13 | 18 |
Financing receivable, originated year three | 21 | 12 |
Financing receivable, originated year four | 42 | 21 |
Financing receivable, originated year five | 27 | 43 |
Financing receivable, originated prior to year five | 33 | 57 |
Revolving Loans | 18 | 25 |
Revolving Loans converted to term loans | 0 | 0 |
Total loans, net of unearned income | $ 184 | $ 176 |
Loans and Leases - Loans by FIC
Loans and Leases - Loans by FICO Score (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, net of unearned income | $ 58,600 | $ 58,232 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, net of unearned income | 11,053 | 11,725 |
Consumer | Consumer real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 276 | 1,747 |
Financing receivable, originated year two | 1,706 | 1,670 |
Financing receivable, originated year three | 1,514 | 1,093 |
Financing receivable, originated year four | 966 | 920 |
Financing receivable, originated year five | 810 | 1,054 |
Financing receivable, originated prior to year five | 3,511 | 2,821 |
Revolving loans | 1,929 | 2,055 |
Revolving Loans converted to term loans | 341 | 365 |
Total loans, net of unearned income | 11,053 | 11,725 |
Consumer | Consumer real estate | FICO score 740 or greater | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 131 | 1,186 |
Financing receivable, originated year two | 1,195 | 1,167 |
Financing receivable, originated year three | 1,060 | 703 |
Financing receivable, originated year four | 613 | 610 |
Financing receivable, originated year five | 529 | 674 |
Financing receivable, originated prior to year five | 2,230 | 1,719 |
Revolving loans | 1,200 | 1,275 |
Revolving Loans converted to term loans | 150 | 159 |
Total loans, net of unearned income | 7,108 | 7,493 |
Consumer | Consumer real estate | FICO score 720-739 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 8 | 157 |
Financing receivable, originated year two | 163 | 158 |
Financing receivable, originated year three | 142 | 100 |
Financing receivable, originated year four | 91 | 77 |
Financing receivable, originated year five | 69 | 92 |
Financing receivable, originated prior to year five | 249 | 197 |
Revolving loans | 179 | 186 |
Revolving Loans converted to term loans | 27 | 29 |
Total loans, net of unearned income | 928 | 996 |
Consumer | Consumer real estate | FICO score 700-719 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 15 | 122 |
Financing receivable, originated year two | 129 | 107 |
Financing receivable, originated year three | 103 | 78 |
Financing receivable, originated year four | 75 | 76 |
Financing receivable, originated year five | 72 | 73 |
Financing receivable, originated prior to year five | 267 | 221 |
Revolving loans | 173 | 177 |
Revolving Loans converted to term loans | 31 | 34 |
Total loans, net of unearned income | 865 | 888 |
Consumer | Consumer real estate | FICO score 660-699 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 13 | 130 |
Financing receivable, originated year two | 121 | 141 |
Financing receivable, originated year three | 120 | 123 |
Financing receivable, originated year four | 115 | 75 |
Financing receivable, originated year five | 69 | 85 |
Financing receivable, originated prior to year five | 329 | 296 |
Revolving loans | 238 | 264 |
Revolving Loans converted to term loans | 53 | 59 |
Total loans, net of unearned income | 1,058 | 1,173 |
Consumer | Consumer real estate | FICO score 620-659 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 1 | 45 |
Financing receivable, originated year two | 40 | 61 |
Financing receivable, originated year three | 57 | 37 |
Financing receivable, originated year four | 31 | 28 |
Financing receivable, originated year five | 21 | 35 |
Financing receivable, originated prior to year five | 134 | 127 |
Revolving loans | 83 | 92 |
Revolving Loans converted to term loans | 35 | 36 |
Total loans, net of unearned income | 402 | 461 |
Consumer | Consumer real estate | FICO score less than 620 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 108 | 107 |
Financing receivable, originated year two | 58 | 36 |
Financing receivable, originated year three | 32 | 52 |
Financing receivable, originated year four | 41 | 54 |
Financing receivable, originated year five | 50 | 95 |
Financing receivable, originated prior to year five | 302 | 261 |
Revolving loans | 56 | 61 |
Revolving Loans converted to term loans | 45 | 48 |
Total loans, net of unearned income | 692 | 714 |
Consumer | Credit Card and Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 32 | 122 |
Financing receivable, originated year two | 109 | 91 |
Financing receivable, originated year three | 77 | 107 |
Financing receivable, originated year four | 94 | 78 |
Financing receivable, originated year five | 67 | 63 |
Financing receivable, originated prior to year five | 300 | 279 |
Revolving loans | 431 | 373 |
Revolving Loans converted to term loans | 16 | 15 |
Total loans, net of unearned income | 1,126 | 1,128 |
Consumer | Credit Card and Other | FICO score 740 or greater | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 13 | 57 |
Financing receivable, originated year two | 51 | 52 |
Financing receivable, originated year three | 43 | 59 |
Financing receivable, originated year four | 53 | 37 |
Financing receivable, originated year five | 32 | 23 |
Financing receivable, originated prior to year five | 119 | 116 |
Revolving loans | 279 | 159 |
Revolving Loans converted to term loans | 6 | 5 |
Total loans, net of unearned income | 596 | 508 |
Consumer | Credit Card and Other | FICO score 720-739 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 2 | 7 |
Financing receivable, originated year two | 8 | 7 |
Financing receivable, originated year three | 7 | 9 |
Financing receivable, originated year four | 6 | 8 |
Financing receivable, originated year five | 7 | 8 |
Financing receivable, originated prior to year five | 30 | 27 |
Revolving loans | 36 | 91 |
Revolving Loans converted to term loans | 2 | 2 |
Total loans, net of unearned income | 98 | 159 |
Consumer | Credit Card and Other | FICO score 700-719 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 3 | 9 |
Financing receivable, originated year two | 8 | 8 |
Financing receivable, originated year three | 7 | 9 |
Financing receivable, originated year four | 8 | 8 |
Financing receivable, originated year five | 6 | 4 |
Financing receivable, originated prior to year five | 38 | 38 |
Revolving loans | 35 | 37 |
Revolving Loans converted to term loans | 2 | 3 |
Total loans, net of unearned income | 107 | 116 |
Consumer | Credit Card and Other | FICO score 660-699 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 2 | 30 |
Financing receivable, originated year two | 29 | 12 |
Financing receivable, originated year three | 10 | 15 |
Financing receivable, originated year four | 14 | 9 |
Financing receivable, originated year five | 8 | 9 |
Financing receivable, originated prior to year five | 52 | 48 |
Revolving loans | 41 | 46 |
Revolving Loans converted to term loans | 3 | 3 |
Total loans, net of unearned income | 159 | 172 |
Consumer | Credit Card and Other | FICO score 620-659 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 1 | 5 |
Financing receivable, originated year two | 4 | 5 |
Financing receivable, originated year three | 4 | 7 |
Financing receivable, originated year four | 6 | 5 |
Financing receivable, originated year five | 4 | 10 |
Financing receivable, originated prior to year five | 31 | 24 |
Revolving loans | 19 | 20 |
Revolving Loans converted to term loans | 1 | 1 |
Total loans, net of unearned income | 70 | 77 |
Consumer | Credit Card and Other | FICO score less than 620 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, originated year one | 11 | 14 |
Financing receivable, originated year two | 9 | 7 |
Financing receivable, originated year three | 6 | 8 |
Financing receivable, originated year four | 7 | 11 |
Financing receivable, originated year five | 10 | 9 |
Financing receivable, originated prior to year five | 30 | 26 |
Revolving loans | 21 | 20 |
Revolving Loans converted to term loans | 2 | 1 |
Total loans, net of unearned income | 96 | 96 |
HELOC | Consumer | Consumer real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Revolving Loans converted to term loans | 11 | |
Total loans, net of unearned income | 2,270 | $ 2,420 |
Credit Card And Other, Other Consumer Loans | Consumer | Credit Card and Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Revolving Loans converted to term loans | $ 2 |
Loans and Leases - Accruing And
Loans and Leases - Accruing And Non-Accruing Loans By Class (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Current, Accruing | $ 58,112 | $ 57,730 | ||
Total Accruing | 58,206 | 57,847 | ||
Current, Non-Accruing | 238 | 205 | ||
Total Non-Accruing | 394 | 386 | ||
Total loans, net of unearned income | 58,600 | 58,232 | ||
Allowance for loan and lease losses | 914 | 963 | $ 444 | $ 307 |
30-89 Days Past Due | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due, Accruing | 81 | 100 | ||
Past Due, Non-Accruing | 21 | 66 | ||
90+ Days Past Due | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due, Accruing | 13 | 17 | ||
Past Due, Non-Accruing | 135 | 115 | ||
Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans, net of unearned income | 33,951 | 33,104 | ||
Commercial | Commercial and industrial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Current, Accruing | 33,781 | 32,945 | ||
Total Accruing | 33,807 | 32,960 | ||
Current, Non-Accruing | 102 | 88 | ||
Total Non-Accruing | 144 | 144 | ||
Total loans, net of unearned income | 33,951 | 33,104 | ||
Allowance for loan and lease losses | 442 | 453 | 255 | 142 |
Commercial | Commercial and industrial | 30-89 Days Past Due | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due, Accruing | 26 | 15 | ||
Past Due, Non-Accruing | 7 | 12 | ||
Commercial | Commercial and industrial | 90+ Days Past Due | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due, Accruing | 0 | 0 | ||
Past Due, Non-Accruing | 35 | 44 | ||
Commercial | Commercial and industrial | C&I | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Current, Accruing | 28,251 | 27,541 | ||
Total Accruing | 28,277 | 27,556 | ||
Current, Non-Accruing | 102 | 88 | ||
Total Non-Accruing | 144 | 144 | ||
Total loans, net of unearned income | 28,421 | 27,700 | ||
Nonaccrual, no allowance | 100 | 101 | ||
Commercial | Commercial and industrial | C&I | 30-89 Days Past Due | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due, Accruing | 26 | 15 | ||
Past Due, Non-Accruing | 7 | 12 | ||
Commercial | Commercial and industrial | C&I | 90+ Days Past Due | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due, Accruing | 0 | 0 | ||
Past Due, Non-Accruing | 35 | 44 | ||
Commercial | Commercial and industrial | Loans to mortgage companies | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Current, Accruing | 5,530 | 5,404 | ||
Total Accruing | 5,530 | 5,404 | ||
Current, Non-Accruing | 0 | 0 | ||
Total Non-Accruing | 0 | 0 | ||
Total loans, net of unearned income | 5,530 | 5,404 | ||
Commercial | Commercial and industrial | Loans to mortgage companies | 30-89 Days Past Due | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due, Accruing | 0 | 0 | ||
Past Due, Non-Accruing | 0 | 0 | ||
Commercial | Commercial and industrial | Loans to mortgage companies | 90+ Days Past Due | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due, Accruing | 0 | 0 | ||
Past Due, Non-Accruing | 0 | 0 | ||
Commercial | Commercial and industrial | TRUPS | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans, net of unearned income | 210 | 210 | ||
Allowance for loan and lease losses | 18 | 18 | ||
Commercial | Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans, net of unearned income | 12,470 | 12,275 | ||
Allowance for loan and lease losses | 232 | 242 | 48 | 29 |
Commercial | Commercial real estate | CRE | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Current, Accruing | 12,194 | |||
Total Accruing | 12,217 | |||
Current, Non-Accruing | 10 | |||
Total Non-Accruing | 58 | |||
Total loans, net of unearned income | 12,470 | 12,275 | ||
Commercial | Commercial real estate | CRE | 30-89 Days Past Due | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due, Accruing | 23 | |||
Past Due, Non-Accruing | 42 | |||
Commercial | Commercial real estate | CRE | 90+ Days Past Due | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due, Accruing | 0 | |||
Past Due, Non-Accruing | 6 | |||
Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans, net of unearned income | 11,053 | 11,725 | ||
Consumer | Consumer Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Current, Accruing | 10,821 | 11,474 | ||
Total Accruing | 10,873 | 11,543 | ||
Current, Non-Accruing | 115 | 106 | ||
Total Non-Accruing | 180 | 182 | ||
Total loans, net of unearned income | 11,053 | 11,725 | ||
Allowance for loan and lease losses | 222 | 242 | 122 | 121 |
Consumer | Consumer Real Estate | 30-89 Days Past Due | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due, Accruing | 39 | 53 | ||
Past Due, Non-Accruing | 10 | 12 | ||
Consumer | Consumer Real Estate | 90+ Days Past Due | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due, Accruing | 13 | 16 | ||
Past Due, Non-Accruing | 55 | 64 | ||
Consumer | Consumer Real Estate | HELOC | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Current, Accruing | 2,198 | 2,336 | ||
Total Accruing | 2,213 | 2,360 | ||
Current, Non-Accruing | 43 | 43 | ||
Total Non-Accruing | 57 | 60 | ||
Total loans, net of unearned income | 2,270 | 2,420 | ||
Consumer | Consumer Real Estate | HELOC | 30-89 Days Past Due | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due, Accruing | 6 | 13 | ||
Past Due, Non-Accruing | 2 | 3 | ||
Consumer | Consumer Real Estate | HELOC | 90+ Days Past Due | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due, Accruing | 9 | 11 | ||
Past Due, Non-Accruing | 12 | 14 | ||
Consumer | Consumer Real Estate | R/E Installment Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Current, Accruing | 8,623 | 9,138 | ||
Total Accruing | 8,660 | 9,183 | ||
Current, Non-Accruing | 72 | 63 | ||
Total Non-Accruing | 123 | 122 | ||
Total loans, net of unearned income | 8,783 | 9,305 | ||
Consumer | Consumer Real Estate | R/E Installment Loans | 30-89 Days Past Due | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due, Accruing | 33 | 40 | ||
Past Due, Non-Accruing | 8 | 9 | ||
Consumer | Consumer Real Estate | R/E Installment Loans | 90+ Days Past Due | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due, Accruing | 4 | 5 | ||
Past Due, Non-Accruing | 43 | 50 | ||
Consumer | Credit Card and Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Current, Accruing | 1,118 | 1,117 | ||
Total Accruing | 1,123 | 1,127 | ||
Current, Non-Accruing | 1 | 1 | ||
Total Non-Accruing | 3 | 2 | ||
Total loans, net of unearned income | 1,126 | 1,128 | ||
Allowance for loan and lease losses | 18 | 26 | $ 19 | $ 15 |
Consumer | Credit Card and Other | 30-89 Days Past Due | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due, Accruing | 5 | 9 | ||
Past Due, Non-Accruing | 1 | 0 | ||
Consumer | Credit Card and Other | 90+ Days Past Due | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due, Accruing | 0 | 1 | ||
Past Due, Non-Accruing | 1 | 1 | ||
Consumer | Credit Card and Other | Credit Card | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Current, Accruing | 273 | 279 | ||
Total Accruing | 275 | 283 | ||
Current, Non-Accruing | 0 | 0 | ||
Total Non-Accruing | 0 | 0 | ||
Total loans, net of unearned income | 275 | 283 | ||
Consumer | Credit Card and Other | Credit Card | 30-89 Days Past Due | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due, Accruing | 2 | 3 | ||
Past Due, Non-Accruing | 0 | 0 | ||
Consumer | Credit Card and Other | Credit Card | 90+ Days Past Due | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due, Accruing | 0 | 1 | ||
Past Due, Non-Accruing | 0 | 0 | ||
Consumer | Credit Card and Other | Other Consumer Loans Class | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Current, Accruing | 845 | 838 | ||
Total Accruing | 848 | 844 | ||
Current, Non-Accruing | 1 | 1 | ||
Total Non-Accruing | 3 | 2 | ||
Total loans, net of unearned income | 851 | 845 | ||
Consumer | Credit Card and Other | Other Consumer Loans Class | 30-89 Days Past Due | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due, Accruing | 3 | 6 | ||
Past Due, Non-Accruing | 1 | 0 | ||
Consumer | Credit Card and Other | Other Consumer Loans Class | 90+ Days Past Due | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due, Accruing | 0 | 0 | ||
Past Due, Non-Accruing | 1 | $ 1 | ||
Commercial real estate | Commercial real estate | CRE | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Current, Accruing | 12,392 | |||
Total Accruing | 12,403 | |||
Current, Non-Accruing | 20 | |||
Total Non-Accruing | 67 | |||
Total loans, net of unearned income | 12,470 | |||
Commercial real estate | Commercial real estate | CRE | 30-89 Days Past Due | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due, Accruing | 11 | |||
Past Due, Non-Accruing | 3 | |||
Commercial real estate | Commercial real estate | CRE | 90+ Days Past Due | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due, Accruing | 0 | |||
Past Due, Non-Accruing | $ 44 |
Loans and Leases - Schedule O_2
Loans and Leases - Schedule Of Troubled Debt Restructurings Occurring During The Year (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2021USD ($)loan | Mar. 31, 2020USD ($)loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number | loan | 52 | 45 |
Pre-Modification Outstanding Recorded Investment | $ 24 | $ 9 |
Post-Modification Outstanding Recorded Investment | $ 22 | $ 7 |
Consumer | Consumer Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number | loan | 21 | 18 |
Pre-Modification Outstanding Recorded Investment | $ 4 | $ 3 |
Post-Modification Outstanding Recorded Investment | $ 4 | $ 3 |
Consumer | Credit Card and Other | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number | loan | 13 | 24 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 |
C&I | Commercial | Commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number | loan | 17 | 3 |
Pre-Modification Outstanding Recorded Investment | $ 8 | $ 6 |
Post-Modification Outstanding Recorded Investment | $ 8 | $ 4 |
CRE | Commercial | Consumer Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number | loan | 1 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 12 | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 10 | $ 0 |
HELOC | Consumer | Consumer Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number | loan | 12 | 8 |
Pre-Modification Outstanding Recorded Investment | $ 2 | $ 1 |
Post-Modification Outstanding Recorded Investment | $ 2 | $ 1 |
R/E Installment Loans | Consumer | Consumer Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number | loan | 9 | 10 |
Pre-Modification Outstanding Recorded Investment | $ 2 | $ 2 |
Post-Modification Outstanding Recorded Investment | $ 2 | $ 2 |
Loans and Leases - Schedule O_3
Loans and Leases - Schedule Of Troubled Debt Restructurings Within The Previous 12 Months (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2021USD ($)loan | Mar. 31, 2020USD ($)loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number | loan | 11 | 16 |
Recorded Investment | $ | $ 3 | $ 1 |
Consumer | Consumer Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number | loan | 4 | 9 |
Recorded Investment | $ | $ 2 | $ 1 |
Consumer | Credit Card and Other | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number | loan | 0 | 7 |
Recorded Investment | $ | $ 0 | $ 0 |
C&I | Commercial | Commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number | loan | 7 | 0 |
Recorded Investment | $ | $ 1 | $ 0 |
CRE | Commercial | Consumer Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number | loan | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 |
HELOC | Consumer | Consumer Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number | loan | 1 | 4 |
Recorded Investment | $ | $ 0 | $ 1 |
R/E Installment Loans | Consumer | Consumer Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number | loan | 3 | 5 |
Recorded Investment | $ | $ 2 | $ 0 |
Allowance for Credit Losses - N
Allowance for Credit Losses - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan and lease losses | $ 914 | $ 963 | $ 444 | $ 307 |
COVID-19 Deferrals | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan and lease losses | $ 1 | $ 1 |
Allowance for Credit Losses (De
Allowance for Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | $ 963 | $ 307 | |
Charge-offs | (23) | (14) | |
Recoveries | 15 | 6 | |
Provision for credit losses | (45) | 154 | |
Ending Balance | 914 | 444 | |
Loans and leases | 58,600 | $ 58,232 | |
Funded commitment | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Provision for credit losses | (41) | 145 | |
Unfunded commitment | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 85 | 30 | |
Provision for credit losses | (4) | 9 | |
Ending Balance | 81 | 39 | |
Commercial | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Loans and leases | 33,951 | 33,104 | |
Commercial | Commercial and industrial | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 453 | 142 | |
Charge-offs | (16) | (7) | |
Recoveries | 6 | 1 | |
Ending Balance | 442 | 255 | |
Loans and leases | 33,951 | 33,104 | |
Commercial | Commercial and industrial | Paycheck Protection Plan | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Loans and leases | 5,100 | 4,100 | |
Commercial | Commercial and industrial | Funded commitment | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Provision for credit losses | (1) | 119 | |
Commercial | Commercial and industrial | Unfunded commitment | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 65 | 21 | |
Provision for credit losses | (3) | 6 | |
Ending Balance | 62 | 27 | |
Commercial | Commercial Real Estate | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 242 | 29 | |
Charge-offs | (3) | (1) | |
Recoveries | 2 | 1 | |
Ending Balance | 232 | 48 | |
Loans and leases | 12,470 | 12,275 | |
Commercial | Commercial Real Estate | Funded commitment | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Provision for credit losses | (8) | 19 | |
Commercial | Commercial Real Estate | Unfunded commitment | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 10 | 3 | |
Provision for credit losses | 1 | 3 | |
Ending Balance | 11 | 6 | |
Consumer | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Loans and leases | 11,053 | 11,725 | |
Consumer | Consumer Real Estate | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 242 | 121 | |
Charge-offs | (1) | (2) | |
Recoveries | 6 | 3 | |
Ending Balance | 222 | 122 | |
Loans and leases | 11,053 | 11,725 | |
Consumer | Consumer Real Estate | Funded commitment | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Provision for credit losses | (25) | 0 | |
Consumer | Consumer Real Estate | Unfunded commitment | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 10 | 6 | |
Provision for credit losses | (2) | 0 | |
Ending Balance | 8 | 6 | |
Consumer | Credit Card and Other | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 26 | 15 | |
Charge-offs | (3) | (4) | |
Recoveries | 1 | 1 | |
Ending Balance | 18 | 19 | |
Loans and leases | 1,126 | $ 1,128 | |
Consumer | Credit Card and Other | Funded commitment | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Provision for credit losses | (6) | 7 | |
Consumer | Credit Card and Other | Unfunded commitment | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 0 | 0 | |
Provision for credit losses | 0 | 0 | |
Ending Balance | $ 0 | $ 0 |
Mortgage Banking Activity - Nar
Mortgage Banking Activity - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Mortgage Banking [Line Items] | |||
Net loans and leases | $ 57,686 | $ 57,269 | |
Mortgage banking and title income | 53 | $ 2 | |
First Horizon Bank | |||
Mortgage Banking [Line Items] | |||
Net loans and leases | 53 | ||
Mortgage banking and title income | |||
Mortgage Banking [Line Items] | |||
Mortgage banking and title income | $ 1 |
Mortgage Banking Activity - Res
Mortgage Banking Activity - Residential Mortgage Loans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | ||
Balance at beginning of period | $ 1,022 | |
Acquired | 0 | $ 320 |
Originations and purchases | 446 | 2,499 |
Sales, net of gains | (421) | (2,405) |
Mortgage loans transferred from (to) held for investment | 3 | (9) |
Balance at end of period | 811 | |
Mortgage loans | ||
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | ||
Balance at beginning of period | 409 | 4 |
Balance at end of period | $ 437 | $ 409 |
Mortgage Banking Activity - MSR
Mortgage Banking Activity - MSR Carrying Amount and Accumulated Amortization (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Mortgage Banking [Line Items] | |||
Gross Carrying Amount | $ 31 | $ 28 | |
Accumulated Amortization | (4) | (3) | |
Net Carrying Amount | 27 | $ 25 | |
Mortgage banking and title income | 53 | $ 2 | |
Mortgage banking and title income | |||
Mortgage Banking [Line Items] | |||
Mortgage banking and title income | $ 1 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Narrative (Details) $ in Millions | Jul. 01, 2020USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Jul. 17, 2020branch | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Goodwill [Line Items] | ||||||
Goodwill | $ 1,511 | $ 1,511 | $ 1,511 | $ 1,433 | ||
Truist Bank Branches | ||||||
Goodwill [Line Items] | ||||||
Number of bank branches | branch | 30 | |||||
Goodwill | 78 | 78 | ||||
IBERIABANK (IBKC) | ||||||
Goodwill [Line Items] | ||||||
Purchase accounting gain | $ 534 | $ 1 | $ 533 | |||
Goodwill | $ (534) |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Summary Of Gross Goodwill And Accumulated Impairment Losses And Write-Offs Detailed By Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Goodwill [Roll Forward] | ||
Goodwill, Beginning balance | $ 1,511 | $ 1,433 |
Additions and adjustments | 0 | 78 |
Goodwill, Ending balance | 1,511 | 1,511 |
Regional Banking | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning balance | 880 | 802 |
Additions and adjustments | 0 | 78 |
Goodwill, Ending balance | 880 | 880 |
Specialty Banking | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning balance | 631 | 631 |
Additions and adjustments | 0 | 0 |
Goodwill, Ending balance | $ 631 | $ 631 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Summary Of Intangible Assets and Accumulated Amortization Included In The Consolidated Statements of Condition (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 449 | $ 449 |
Accumulated Amortization | (110) | (95) |
Net Carrying Value | 339 | 354 |
Core deposit intangibles | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount | 371 | 371 |
Accumulated Amortization | (93) | (81) |
Net Carrying Value | 278 | 290 |
Customer relationships | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount | 37 | 37 |
Accumulated Amortization | (9) | (8) |
Net Carrying Value | 28 | 29 |
Other | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount | 41 | 41 |
Accumulated Amortization | (8) | (6) |
Net Carrying Value | $ 33 | $ 35 |
Preferred Stock - Non-Cumulativ
Preferred Stock - Non-Cumulative Perpetual Preferred Stock (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Class of Stock [Line Items] | ||
Shares Outstanding, preferred (in shares) | 26,250 | |
Liquidation Amount | $ 488 | |
Carrying Amount | $ 470 | $ 470 |
Beginning on or after August 1, 2025 | LIBOR | ||
Class of Stock [Line Items] | ||
Basis spread on variable rate | 4.262% | |
Beginning on or after May 1, 2026 | LIBOR | ||
Class of Stock [Line Items] | ||
Basis spread on variable rate | 4.92% | |
Beginning on or after May 1, 2024 | LIBOR | ||
Class of Stock [Line Items] | ||
Basis spread on variable rate | 3.859% | |
Series A | ||
Class of Stock [Line Items] | ||
Annual Dividend Rate | 6.20% | |
Shares Outstanding, preferred (in shares) | 1,000 | |
Liquidation Amount | $ 100 | |
Carrying Amount | $ 96 | 96 |
Series B | ||
Class of Stock [Line Items] | ||
Annual Dividend Rate | 6.625% | |
Shares Outstanding, preferred (in shares) | 8,000 | |
Liquidation Amount | $ 80 | |
Carrying Amount | $ 77 | 77 |
Series C | ||
Class of Stock [Line Items] | ||
Annual Dividend Rate | 6.60% | |
Shares Outstanding, preferred (in shares) | 5,750 | |
Liquidation Amount | $ 58 | |
Carrying Amount | $ 59 | 59 |
Series D | ||
Class of Stock [Line Items] | ||
Annual Dividend Rate | 6.10% | |
Shares Outstanding, preferred (in shares) | 10,000 | |
Liquidation Amount | $ 100 | |
Carrying Amount | $ 93 | 93 |
Series E | ||
Class of Stock [Line Items] | ||
Annual Dividend Rate | 6.50% | |
Shares Outstanding, preferred (in shares) | 1,500 | |
Liquidation Amount | $ 150 | |
Carrying Amount | $ 145 | $ 145 |
Preferred Stock - Narrative (De
Preferred Stock - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Class of Stock [Line Items] | ||
Preferred stock, shares issued (in shares) | 26,250 | 26,250 |
Noncontrolling interest | $ 295 | $ 295 |
Preferred Class A | ||
Class of Stock [Line Items] | ||
Preferred stock, shares issued (in shares) | 300,000 | |
Preferred stock, liquidation preference per share (in dollars per share) | $ 1,000 | |
Annual Dividend Rate | 3.75% | |
Noncontrolling interest | $ 295 | $ 295 |
Preferred Class A | LIBOR | ||
Class of Stock [Line Items] | ||
Basis spread on variable rate | 0.85% |
Components of Other Comprehen_3
Components of Other Comprehensive Income (Loss) - Schedule of Changes in AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance, beginning of period | $ 8,307 | $ 5,076 |
Net unrealized gains (losses) | (104) | 102 |
Amounts reclassified from AOCI | 3 | 2 |
Other comprehensive income (loss) | (101) | 104 |
Balance, end of period | 8,307 | 5,056 |
Securities AFS | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance, beginning of period | 108 | 31 |
Net unrealized gains (losses) | (103) | 89 |
Amounts reclassified from AOCI | 0 | 0 |
Other comprehensive income (loss) | (103) | 89 |
Balance, end of period | 5 | 120 |
Cash Flow Hedges | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance, beginning of period | 12 | 3 |
Net unrealized gains (losses) | (3) | 13 |
Amounts reclassified from AOCI | 1 | 0 |
Other comprehensive income (loss) | (2) | 13 |
Balance, end of period | 10 | 16 |
Pension and Post-retirement Plans | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance, beginning of period | (260) | (273) |
Net unrealized gains (losses) | 2 | 0 |
Amounts reclassified from AOCI | 2 | 2 |
Other comprehensive income (loss) | 4 | 2 |
Balance, end of period | (256) | (271) |
Total | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance, beginning of period | (140) | (239) |
Balance, end of period | $ (241) | $ (135) |
Components of Other Comprehen_4
Components of Other Comprehensive Income (Loss) - Schedule of Reclassification from AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Interest and fees on loans and leases | $ 507 | $ 327 |
All other expense | 106 | 48 |
Income tax expense | 71 | 5 |
Amounts reclassified from AOCI | (236) | (16) |
Reclassification out of Accumulated Other Comprehensive Income | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts reclassified from AOCI | 3 | 2 |
Reclassification out of Accumulated Other Comprehensive Income | Cash Flow Hedges | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Interest and fees on loans and leases | 2 | 0 |
Income tax expense | (1) | 0 |
Amounts reclassified from AOCI | 1 | 0 |
Reclassification out of Accumulated Other Comprehensive Income | Pension and Post-retirement Plans | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
All other expense | 4 | 3 |
Income tax expense | (2) | (1) |
Amounts reclassified from AOCI | $ 2 | $ 2 |
Earnings Per Share - Schedule O
Earnings Per Share - Schedule Of Reconciliation Of Net Income/(Loss) to Net Income/(Loss) Available to Common Shareholders (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Net income | $ 236 | $ 16 |
Net income attributable to noncontrolling interest | 3 | 3 |
Net income attributable to controlling interest | 233 | 13 |
Preferred stock dividends | 8 | 1 |
Net income available to common shareholders | $ 225 | $ 12 |
Weighted average common shares outstanding - basic (in shares) | 552,249 | 311,597 |
Effect of dilutive securities (in shares) | 5,283 | 1,573 |
Weighted average common shares outstanding - diluted (in shares) | 557,532 | 313,170 |
Basic earnings per common share (in dollars per share) | $ 0.41 | $ 0.04 |
Diluted earnings per common share (in dollars per share) | $ 0.40 | $ 0.04 |
Earnings Per Share - Schedule_2
Earnings Per Share - Schedule Of Anti-Dilutive Options and Awards (Details) - $ / shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Weighted average exercise price of stock options excluded from the calculation of diluted EPS (in dollars per share) | $ 18.11 | $ 18.73 |
Employee Stock Option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock options and other awards excluded from the calculation of diluted EPS (in shares) | 3,827 | 3,031 |
Other Equity Awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock options and other awards excluded from the calculation of diluted EPS (in shares) | 2,784 | 4,264 |
Contingencies And Other Discl_2
Contingencies And Other Disclosures (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Loss Contingencies [Line Items] | ||
Estimated litigation liability | $ 1,000,000 | |
Accrued losses on loan repurchase exposure | 16,000,000 | $ 16,000,000 |
Minimum | ||
Loss Contingencies [Line Items] | ||
Estimated litigation liability | 0 | |
Maximum | ||
Loss Contingencies [Line Items] | ||
Estimated litigation liability | $ 1,000,000 |
Retirement Plans - Narrative (D
Retirement Plans - Narrative (Details) - Nonqualified Plan - Pension Benefits - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Mar. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan contribution | $ 5 | |
Defined benefit plan, expected contributions by employer remainder of year | $ 5 |
Retirement Plans - Schedule Of
Retirement Plans - Schedule Of Components Of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Other | $ 2 | $ 0 |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | 4 | 6 |
Expected return on plan assets | (4) | (6) |
Actuarial (gain) loss | 2 | 3 |
Net periodic benefit cost | $ 4 | $ 3 |
Business Segment Information -
Business Segment Information - Amounts of Consolidated Revenue, Expense, Tax and Assets by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Net interest income (expense) | $ 508 | $ 303 |
Provision for credit losses | (45) | 154 |
Noninterest income | 298 | 174 |
Noninterest expense (a) | 544 | 302 |
Income (loss) before income taxes | 307 | 21 |
Income tax expense | 71 | 5 |
Net income | 236 | 16 |
Average assets | 85,401 | 43,552 |
Regional Banking | ||
Disaggregation of Revenue [Line Items] | ||
Net interest income (expense) | 426 | 194 |
Provision for credit losses | (32) | 98 |
Noninterest income | 100 | 73 |
Noninterest expense (a) | 272 | 173 |
Income (loss) before income taxes | 286 | (4) |
Income tax expense | 66 | (2) |
Net income | 220 | (2) |
Average assets | 42,371 | 19,044 |
Specialty Banking | ||
Disaggregation of Revenue [Line Items] | ||
Net interest income (expense) | 159 | 109 |
Provision for credit losses | (7) | 54 |
Noninterest income | 185 | 104 |
Noninterest expense (a) | 154 | 111 |
Income (loss) before income taxes | 197 | 48 |
Income tax expense | 47 | 11 |
Net income | 150 | 37 |
Average assets | 21,503 | 16,890 |
Corporate | ||
Disaggregation of Revenue [Line Items] | ||
Net interest income (expense) | (77) | 0 |
Provision for credit losses | (6) | 2 |
Noninterest income | 13 | (3) |
Noninterest expense (a) | 118 | 18 |
Income (loss) before income taxes | (176) | (23) |
Income tax expense | (42) | (4) |
Net income | (134) | (19) |
Average assets | 21,527 | $ 7,618 |
Asset impairment charges | $ 33 |
Business Segment Information _2
Business Segment Information - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Fixed income | $ 126 | $ 96 |
Mortgage banking and title income | 53 | 2 |
Deposit transactions and cash management | 42 | 30 |
Brokerage, management fees and commissions | 20 | 16 |
Trust services and investment management | 12 | 7 |
Bankcard income | 11 | 7 |
Other income | 34 | 16 |
Total noninterest income | 298 | 174 |
Regional Banking | ||
Disaggregation of Revenue [Line Items] | ||
Fixed income | 1 | 0 |
Mortgage banking and title income | 0 | 0 |
Deposit transactions and cash management | 38 | 26 |
Brokerage, management fees and commissions | 20 | 16 |
Trust services and investment management | 12 | 7 |
Bankcard income | 11 | 6 |
Other income | 18 | 18 |
Total noninterest income | 100 | 73 |
Specialty Banking | ||
Disaggregation of Revenue [Line Items] | ||
Fixed income | 125 | 96 |
Mortgage banking and title income | 52 | 2 |
Deposit transactions and cash management | 3 | 3 |
Brokerage, management fees and commissions | 0 | 0 |
Trust services and investment management | 0 | 0 |
Bankcard income | 0 | 1 |
Other income | 5 | 2 |
Total noninterest income | 185 | 104 |
Corporate | ||
Disaggregation of Revenue [Line Items] | ||
Fixed income | 0 | 0 |
Mortgage banking and title income | 1 | 0 |
Deposit transactions and cash management | 1 | 1 |
Brokerage, management fees and commissions | 0 | 0 |
Trust services and investment management | 0 | 0 |
Bankcard income | 0 | 0 |
Other income | 11 | (4) |
Total noninterest income | 13 | (3) |
Underwriting, portfolio advisory, and other noninterest income | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | $ 10 | $ 9 |
Variable Interest Entities - Su
Variable Interest Entities - Summary Of VIE Consolidated By FHN (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Other assets | $ 3,696 | $ 4,072 |
Total assets | 87,513 | 84,209 |
Liabilities: | ||
Other liabilities | 1,712 | 1,699 |
Total liabilities | 79,206 | 75,902 |
Rabbi Trusts used for Deferred Compensation Plans | ||
Assets | ||
Other assets | 200 | 195 |
Total assets | 200 | 195 |
Liabilities: | ||
Other liabilities | 173 | 165 |
Total liabilities | $ 173 | $ 165 |
Variable Interest Entities - _2
Variable Interest Entities - Summary of the Impact of Qualifying LIHTC Investments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Low income housing tax credits | ||
Variable Interest Entity [Line Items] | ||
Amortization of qualifying LIHTC investments | $ 9 | $ 6 |
Affordable Housing Tax Credits And Other Tax Benefits | (9) | (5) |
Other tax benefits related to qualifying LIHTC investments | ||
Variable Interest Entity [Line Items] | ||
Affordable Housing Tax Credits And Other Tax Benefits | $ (3) | $ (3) |
Variable Interest Entities - _3
Variable Interest Entities - Summary Of VIE Not Consolidated By FHN (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Variable Interest Entity [Line Items] | ||
Total liabilities | $ 79,206 | $ 75,902 |
Loans and leases | 58,600 | 58,232 |
Trading securities | 1,076 | 1,176 |
Term borrowings | 1,671 | 1,670 |
Securities available-for-sale | 8,351 | 8,047 |
Low income housing partnerships | ||
Variable Interest Entity [Line Items] | ||
Maximum Loss Exposure | 345 | 338 |
Maximum loss exposure, contractual funding commitments | 126 | 132 |
Low income housing partnerships | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Total liabilities | 126 | 132 |
Low income housing partnerships | Other Assets | ||
Variable Interest Entity [Line Items] | ||
Maximum loss exposure, current investments | 219 | 206 |
Other tax credit investments | ||
Variable Interest Entity [Line Items] | ||
Maximum Loss Exposure | 68 | 64 |
Other tax credit investments | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Total liabilities | 42 | 42 |
Small issuer trust preferred holdings | ||
Variable Interest Entity [Line Items] | ||
Maximum Loss Exposure | 210 | 210 |
Small issuer trust preferred holdings | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Total liabilities | 0 | 0 |
On-balance sheet trust preferred securitization | ||
Variable Interest Entity [Line Items] | ||
Maximum Loss Exposure | 32 | 32 |
Loans and leases | 112 | 112 |
Trading securities | 2 | 2 |
Term borrowings | 83 | 82 |
On-balance sheet trust preferred securitization | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Total liabilities | 83 | 82 |
Holdings of agency mortgage-backed securities | ||
Variable Interest Entity [Line Items] | ||
Maximum Loss Exposure | 7,053 | 7,063 |
Trading securities | 600 | 800 |
Securities available-for-sale | 6,500 | 6,200 |
Holdings of agency mortgage-backed securities | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Total liabilities | 0 | 0 |
Commercial loan troubled debt restructurings | ||
Variable Interest Entity [Line Items] | ||
Maximum Loss Exposure | 169 | 186 |
Maximum loss exposure, contractual funding commitments | 3 | 10 |
Loans and leases | 166 | 176 |
Commercial loan troubled debt restructurings | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Total liabilities | 0 | 0 |
Proprietary trust preferred issuances | ||
Variable Interest Entity [Line Items] | ||
Maximum Loss Exposure | 0 | 0 |
Proprietary trust preferred issuances | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Total liabilities | $ 287 | $ 287 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Nov. 30, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Collateral cash payables | $ 237 | $ 347 | ||
Total trading revenues | 115 | $ 78 | ||
Hedged amount of foreign currency denominated loans | 10 | 12 | ||
Derivative assets | 543 | 765 | ||
Derivative liability | 243 | 125 | ||
Visa Class B Shares | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative liabilities related to sale | 20 | 13 | ||
Additional Derivative Agreements | Derivative Instruments With Adjustable Collateral Posting Thresholds | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net fair value of derivative assets with adjustable posting thresholds | 85 | 200 | ||
Net fair value of derivative liabilities with adjustable posting thresholds | 33 | 5 | ||
Collateral received | 248 | 320 | ||
Securities posted collateral | 5 | 34 | ||
Additional Derivative Agreements | Derivative Instruments With Accelerated Termination Provisions | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net fair value of derivative assets with adjustable posting thresholds | 102 | 216 | ||
Net fair value of derivative liabilities with adjustable posting thresholds | 40 | 17 | ||
Collateral received | 265 | 343 | ||
Securities posted collateral | 10 | 53 | ||
Counterparties | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Collateral cash receivables | 234 | 280 | ||
Collateral cash payables | 122 | 166 | ||
Senior Subordinated Notes | Senior Debt Maturing In December 2020 | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Term borrowings | $ 500 | |||
Early repayment of senior debt | $ 500 | |||
Derivatives, interest rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Collateral cash payables | 232 | 327 | ||
Derivative assets | 412 | 702 | ||
Derivative liability | 128 | 60 | ||
Derivatives, interest rate contracts | Cash Flow Hedge | Hedged Items | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Variability in cash flows related to debt instruments (primarily loans) | 1,250 | 1,250 | ||
Credit Risk Contract | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative asset, notional amount | 237 | 233 | ||
Derivative liability, notional amount | 501 | 464 | ||
Embedded Derivative Financial Instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative assets | 2 | 1 | ||
Derivative liability | $ 2 | $ 1 |
Derivatives - Derivatives Assoc
Derivatives - Derivatives Associated with Fixed Income Trading Activities (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Customer interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional | $ 3,877 | $ 3,950 |
Assets | 111 | 207 |
Liabilities | 60 | 7 |
Offsetting upstream interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional | 3,877 | 3,950 |
Assets | 6 | 2 |
Liabilities | 13 | 17 |
Option contracts purchased | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional | 3 | |
Assets | 0 | |
Liabilities | 0 | |
Forwards and futures purchased | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional | 15,777 | 10,795 |
Assets | 12 | 62 |
Liabilities | 108 | 0 |
Forwards and futures sold | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional | 16,495 | 11,633 |
Assets | 119 | 1 |
Liabilities | $ 8 | $ 65 |
Derivatives - Derivatives Ass_2
Derivatives - Derivatives Associated With Interest Rate Risk Management Activities (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Customer interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional | $ 3,877 | $ 3,950 |
Assets | 111 | 207 |
Liabilities | 60 | 7 |
Offsetting upstream interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional | 3,877 | 3,950 |
Assets | 6 | 2 |
Liabilities | 13 | 17 |
Customer Interest Rate Contracts Hedging | Hedging Instruments And Hedged Items | Customer interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional | 7,057 | 6,868 |
Assets | 255 | 436 |
Liabilities | 30 | 1 |
Customer Interest Rate Contracts Hedging | Hedging Instruments And Hedged Items | Offsetting upstream interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional | 7,057 | 6,868 |
Assets | 4 | 5 |
Liabilities | $ 24 | $ 35 |
Derivatives - Gains_(Losses) on
Derivatives - Gains/(Losses) on Derivatives Associated with Interest Rate Risk Management Activities (Details) - Hedging Instruments And Hedged Items - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Customer Interest Rate Contracts Hedging | Customer interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) related to interest rate derivatives | $ 214 | $ 196 |
Customer Interest Rate Contracts Hedging | Offsetting upstream interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) related to interest rate derivatives | (214) | (196) |
Debt Hedging | Interest Rate Swap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) related to interest rate derivatives | 0 | 5 |
Debt Hedging | Term Borrowings | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains/(Losses) related to term borrowings | $ 0 | $ (4) |
Derivatives - Derivatives Ass_3
Derivatives - Derivatives Associated With Cash Flow Hedges (Details) - Cash Flow Hedge - Hedging Instruments And Hedged Items - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Interest Rate Contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Variability in cash flows related to debt instruments (primarily loans) | $ 1,250 | $ 1,250 |
Interest Rate Swap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional | 1,250 | 1,250 |
Assets | 27 | 32 |
Liabilities | $ 0 | $ 0 |
Derivatives - Gains_(Losses) _2
Derivatives - Gains/(Losses) on Derivatives Associated with Cash Flow Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain/(loss) expected to be reclassified to earnings in the next twelve months | $ 25 | |
Hedging Instruments And Hedged Items | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss), cash flow hedges | (3) | $ 13 |
Gain (loss) reclassified from AOCI into Interest income | 1 | 0 |
Hedging Instruments And Hedged Items | Interest Rate Swap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss), cash flow hedges | $ 8 | $ 17 |
Derivatives - Notional and Fair
Derivatives - Notional and Fair Value of Mortgage Banking Hedges (Details) - Mortgage Banking Hedges - Hedged Items - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Option contracts written | ||
Derivative [Line Items] | ||
Notional | $ 702 | $ 667 |
Assets | 9 | 20 |
Liabilities | 1 | 0 |
Forward contracts purchased | ||
Derivative [Line Items] | ||
Notional | 878 | 725 |
Assets | 14 | 0 |
Liabilities | $ 0 | $ 6 |
Derivatives - Gains_(Losses) _3
Derivatives - Gains/(Losses) on Derivatives Associated with Mortgage Banking Hedges (Details) - Mortgage Banking Hedges - Hedged Items $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Option contracts written | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Gain (loss) on derivative instruments | $ (11) |
Forward contracts purchased | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Gain (loss) on derivative instruments | $ 23 |
Derivatives - Derivative Assets
Derivatives - Derivative Assets and Collateral Received (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Gross amounts of recognized assets | $ 543 | $ 765 |
Derivative liabilities available for offset | 0 | 0 |
Net amount | 543 | 765 |
Derivative liabilities available for offset | (75) | (21) |
Collateral received | (237) | (347) |
Net amount | 231 | 397 |
Derivative assets not subject to master netting agreements | 16 | 4 |
Derivatives, interest rate contracts | ||
Derivative [Line Items] | ||
Gross amounts of recognized assets | 412 | 702 |
Derivative liabilities available for offset | 0 | 0 |
Net amount | 412 | 702 |
Derivative liabilities available for offset | (42) | (7) |
Collateral received | (232) | (327) |
Net amount | 138 | 368 |
Forward contracts | ||
Derivative [Line Items] | ||
Gross amounts of recognized assets | 131 | 63 |
Derivative liabilities available for offset | 0 | 0 |
Net amount | 131 | 63 |
Derivative liabilities available for offset | (33) | (14) |
Collateral received | (5) | (20) |
Net amount | $ 93 | $ 29 |
Derivatives - Derivative Liabil
Derivatives - Derivative Liabilities and Collateral Pledged (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Gross amounts of recognized liabilities | $ 243 | $ 125 |
Derivative assets available for offset | 0 | 0 |
Derivative liability | 243 | 125 |
Derivative assets available for offset | (75) | (21) |
Collateral pledged | (46) | (82) |
Net amount | 122 | 22 |
Derivative liabilities not subject to master netting agreements | 21 | 22 |
Derivatives, interest rate contracts | ||
Derivative [Line Items] | ||
Gross amounts of recognized liabilities | 128 | 60 |
Derivative assets available for offset | 0 | 0 |
Derivative liability | 128 | 60 |
Derivative assets available for offset | (42) | (7) |
Collateral pledged | (12) | (31) |
Net amount | 74 | 22 |
Forward contracts | ||
Derivative [Line Items] | ||
Gross amounts of recognized liabilities | 115 | 65 |
Derivative assets available for offset | 0 | 0 |
Derivative liability | 115 | 65 |
Derivative assets available for offset | (33) | (14) |
Collateral pledged | (34) | (51) |
Net amount | $ 48 | $ 0 |
Master Netting and Similar Ag_3
Master Netting and Similar Agreements—Repurchase, Reverse Repurchase, and Securities Borrowing Transactions - Securities Purchased Under Agreements To Resell And Collateral Pledged By Counterparties (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Securities Purchased under Agreements to Resell [Abstract] | ||
Gross amounts of recognized assets | $ 463 | $ 380 |
Gross amounts offset in the Balance Sheets | 0 | 0 |
Net amounts of assets presented in the Balance Sheets | 463 | 380 |
Offsetting securities sold under agreements to repurchase | 0 | 0 |
Securities collateral (not recognized on FHN’s Balance Sheets) | (461) | (379) |
Net amount | $ 2 | $ 1 |
Master Netting and Similar Ag_4
Master Netting and Similar Agreements—Repurchase, Reverse Repurchase, and Securities Borrowing Transactions - Securities Sold Under Agreements To Repurchase And Collateral Pledged By Company (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Securities Sold under Agreements to Repurchase [Abstract] | ||
Gross amounts of recognized liabilities | $ 1,098 | $ 1,187 |
Gross amounts offset in the Balance Sheets | 0 | 0 |
Net amounts of liabilities presented in the Balance Sheets | 1,098 | 1,187 |
Offsetting securities purchased under agreements to resell | 0 | 0 |
Securities/ government guaranteed loans collateral | (1,098) | (1,187) |
Net amount | $ 0 | $ 0 |
Master Netting and Similar Ag_5
Master Netting and Similar Agreements—Repurchase, Reverse Repurchase, and Securities Borrowing Transactions - Schedule of the Remaining Contractual Maturity by Collateral Type of Securities Sold Under Agreements To Repurchase (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | $ 1,098 | $ 1,187 |
Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 1,098 | 1,187 |
Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 0 | 0 |
U.S. treasuries | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 294 | 284 |
U.S. treasuries | Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 294 | 284 |
U.S. treasuries | Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 0 | 0 |
Government agency issued MBS | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 584 | 616 |
Government agency issued MBS | Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 584 | 616 |
Government agency issued MBS | Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 0 | 0 |
Government agency issued CMO | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 13 | 10 |
Government agency issued CMO | Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 13 | 10 |
Government agency issued CMO | Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 0 | 0 |
Other U.S. government agencies | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 82 | 151 |
Other U.S. government agencies | Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 82 | 151 |
Other U.S. government agencies | Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 0 | 0 |
Government guaranteed loans (SBA and USDA) | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 125 | 126 |
Government guaranteed loans (SBA and USDA) | Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 125 | 126 |
Government guaranteed loans (SBA and USDA) | Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | $ 0 | $ 0 |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities - Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | $ 1,076 | $ 1,176 |
Loans held-for-sale | 449 | 405 |
Loans held for investment | 17 | 16 |
Securities available-for-sale | 8,351 | 8,047 |
Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Loans held-for-sale | 449 | 405 |
Loans held for investment | 17 | 16 |
Securities available-for-sale | 8,351 | 8,047 |
Total other assets | 708 | 912 |
Total assets | 10,601 | 10,556 |
Total other liabilities | 267 | 149 |
Total liabilities | 721 | 502 |
Level 1 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Loans held-for-sale | 0 | 0 |
Loans held for investment | 0 | 0 |
Securities available-for-sale | 0 | 0 |
Total other assets | 292 | 206 |
Total assets | 292 | 206 |
Total other liabilities | 116 | 71 |
Total liabilities | 116 | 71 |
Level 2 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Loans held-for-sale | 437 | 393 |
Loans held for investment | 0 | 0 |
Securities available-for-sale | 8,329 | 8,015 |
Total other assets | 416 | 706 |
Total assets | 10,258 | 10,290 |
Total other liabilities | 130 | 64 |
Total liabilities | 584 | 417 |
Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Loans held-for-sale | 12 | 12 |
Loans held for investment | 17 | 16 |
Securities available-for-sale | 22 | 32 |
Total other assets | 0 | 0 |
Total assets | 51 | 60 |
Total other liabilities | 21 | 14 |
Total liabilities | 21 | 14 |
Deferred compensation mutual funds | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total other assets | 122 | 118 |
Deferred compensation mutual funds | Level 1 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total other assets | 122 | 118 |
Deferred compensation mutual funds | Level 2 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total other assets | 0 | 0 |
Deferred compensation mutual funds | Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total other assets | 0 | 0 |
Equity, mutual funds, and other | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total other assets | 25 | 25 |
Equity, mutual funds, and other | Level 1 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total other assets | 25 | 25 |
Equity, mutual funds, and other | Level 2 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total other assets | 0 | 0 |
Equity, mutual funds, and other | Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total other assets | 0 | 0 |
Derivatives, forwards and futures | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total other assets | 145 | 63 |
Total other liabilities | 116 | 71 |
Derivatives, forwards and futures | Level 1 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total other assets | 145 | 63 |
Total other liabilities | 116 | 71 |
Derivatives, forwards and futures | Level 2 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total other assets | 0 | 0 |
Total other liabilities | 0 | 0 |
Derivatives, forwards and futures | Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total other assets | 0 | 0 |
Total other liabilities | 0 | 0 |
Derivatives, interest rate contracts | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total other assets | 414 | 702 |
Total other liabilities | 128 | 60 |
Derivatives, interest rate contracts | Level 1 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total other assets | 0 | 0 |
Total other liabilities | 0 | 0 |
Derivatives, interest rate contracts | Level 2 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total other assets | 414 | 702 |
Total other liabilities | 128 | 60 |
Derivatives, interest rate contracts | Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total other assets | 0 | 0 |
Total other liabilities | 0 | 0 |
Derivatives, other | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total other assets | 2 | 4 |
Total other liabilities | 23 | 18 |
Derivatives, other | Level 1 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total other assets | 0 | 0 |
Total other liabilities | 0 | 0 |
Derivatives, other | Level 2 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total other assets | 2 | 4 |
Total other liabilities | 2 | 4 |
Derivatives, other | Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total other assets | 0 | 0 |
Total other liabilities | 21 | 14 |
U.S. treasuries | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available-for-sale | 610 | 613 |
U.S. treasuries | Level 1 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available-for-sale | 0 | 0 |
U.S. treasuries | Level 2 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available-for-sale | 610 | 613 |
U.S. treasuries | Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available-for-sale | 0 | 0 |
Government agency issued MBS | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available-for-sale | 4,038 | 3,812 |
Government agency issued MBS | Level 1 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available-for-sale | 0 | 0 |
Government agency issued MBS | Level 2 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available-for-sale | 4,038 | 3,812 |
Government agency issued MBS | Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available-for-sale | 0 | 0 |
Government agency issued CMO | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available-for-sale | 2,441 | 2,406 |
Government agency issued CMO | Level 1 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available-for-sale | 0 | 0 |
Government agency issued CMO | Level 2 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available-for-sale | 2,441 | 2,406 |
Government agency issued CMO | Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available-for-sale | 0 | 0 |
Other U.S. government agencies | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available-for-sale | 725 | 684 |
Other U.S. government agencies | Level 1 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available-for-sale | 0 | 0 |
Other U.S. government agencies | Level 2 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available-for-sale | 725 | 684 |
Other U.S. government agencies | Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available-for-sale | 0 | 0 |
States and municipalities | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available-for-sale | 475 | 460 |
States and municipalities | Level 1 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available-for-sale | 0 | 0 |
States and municipalities | Level 2 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available-for-sale | 475 | 460 |
States and municipalities | Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available-for-sale | 0 | 0 |
Corporate and other debt | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available-for-sale | 40 | 40 |
Corporate and other debt | Level 1 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available-for-sale | 0 | 0 |
Corporate and other debt | Level 2 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available-for-sale | 40 | 40 |
Corporate and other debt | Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available-for-sale | 0 | 0 |
Interest- only strips- AFS | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available-for-sale | 22 | 32 |
Interest- only strips- AFS | Level 1 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available-for-sale | 0 | 0 |
Interest- only strips- AFS | Level 2 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available-for-sale | 0 | 0 |
Interest- only strips- AFS | Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Securities available-for-sale | 22 | 32 |
Specialty Banking | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 1,076 | 1,176 |
Total trading liabilities - fixed income | 454 | 353 |
Specialty Banking | Level 1 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 0 | 0 |
Total trading liabilities - fixed income | 0 | 0 |
Specialty Banking | Level 2 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 1,076 | 1,176 |
Total trading liabilities - fixed income | 454 | 353 |
Specialty Banking | Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 0 | 0 |
Total trading liabilities - fixed income | 0 | 0 |
Specialty Banking | U.S. treasuries | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 51 | 81 |
Total trading liabilities - fixed income | 361 | 307 |
Specialty Banking | U.S. treasuries | Level 1 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 0 | 0 |
Total trading liabilities - fixed income | 0 | 0 |
Specialty Banking | U.S. treasuries | Level 2 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 51 | 81 |
Total trading liabilities - fixed income | 361 | 307 |
Specialty Banking | U.S. treasuries | Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 0 | 0 |
Total trading liabilities - fixed income | 0 | 0 |
Specialty Banking | Government agency issued MBS | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 384 | 633 |
Total trading liabilities - fixed income | 8 | 3 |
Specialty Banking | Government agency issued MBS | Level 1 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 0 | 0 |
Total trading liabilities - fixed income | 0 | 0 |
Specialty Banking | Government agency issued MBS | Level 2 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 384 | 633 |
Total trading liabilities - fixed income | 8 | 3 |
Specialty Banking | Government agency issued MBS | Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 0 | 0 |
Total trading liabilities - fixed income | 0 | 0 |
Specialty Banking | Government agency issued CMO | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 190 | 212 |
Specialty Banking | Government agency issued CMO | Level 1 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 0 | 0 |
Specialty Banking | Government agency issued CMO | Level 2 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 190 | 212 |
Specialty Banking | Government agency issued CMO | Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 0 | 0 |
Specialty Banking | Other U.S. government agencies | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 237 | 62 |
Total trading liabilities - fixed income | 20 | |
Specialty Banking | Other U.S. government agencies | Level 1 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 0 | 0 |
Total trading liabilities - fixed income | 0 | |
Specialty Banking | Other U.S. government agencies | Level 2 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 237 | 62 |
Total trading liabilities - fixed income | 20 | |
Specialty Banking | Other U.S. government agencies | Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 0 | 0 |
Total trading liabilities - fixed income | 0 | |
Specialty Banking | States and municipalities | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 10 | 7 |
Specialty Banking | States and municipalities | Level 1 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 0 | 0 |
Specialty Banking | States and municipalities | Level 2 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 10 | 7 |
Specialty Banking | States and municipalities | Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 0 | 0 |
Specialty Banking | Corporate and other debt | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 204 | 181 |
Total trading liabilities - fixed income | 65 | 43 |
Specialty Banking | Corporate and other debt | Level 1 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 0 | 0 |
Total trading liabilities - fixed income | 0 | 0 |
Specialty Banking | Corporate and other debt | Level 2 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 204 | 181 |
Total trading liabilities - fixed income | 65 | 43 |
Specialty Banking | Corporate and other debt | Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Trading securities | 0 | 0 |
Total trading liabilities - fixed income | $ 0 | $ 0 |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities - Summary Of Changes In Level 3 Assets And Liabilities Measured At Fair Value (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Fair value, asset (liability), unrealized gain (loss), OCI | $ 0 | |
Level 3 | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance | $ (14,000,000) | (23,000,000) |
Total net gains (losses) included in net income | (9,000,000) | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements | 2,000,000 | 2,000,000 |
Net transfers into (out of) Level 3 | 0 | 0 |
Ending balance | (21,000,000) | (21,000,000) |
Net unrealized gains (losses) included in net income | (9,000,000) | 0 |
Fair value, asset (liability), unrealized gain (loss), OCI | 0 | |
Trading securities | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 1,000,000 | |
Total net gains (losses) included in net income | 0 | |
Purchases | 0 | |
Sales | 0 | |
Settlements | 0 | |
Net transfers into (out of) Level 3 | 0 | |
Ending balance | 1,000,000 | |
Net unrealized gains (losses) included in net income | 0 | |
Interest- only strips- AFS | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 32,000,000 | 19,000,000 |
Total net gains (losses) included in net income | 5,000,000 | (1,000,000) |
Purchases | 0 | 5,000,000 |
Sales | (27,000,000) | (8,000,000) |
Settlements | 0 | 0 |
Net transfers into (out of) Level 3 | 12,000,000 | 8,000,000 |
Ending balance | 22,000,000 | 23,000,000 |
Net unrealized gains (losses) included in net income | 2,000,000 | (1,000,000) |
Loans held for sale | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 12,000,000 | 14,000,000 |
Total net gains (losses) included in net income | 1,000,000 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements | (1,000,000) | (1,000,000) |
Net transfers into (out of) Level 3 | 0 | 0 |
Ending balance | 12,000,000 | 13,000,000 |
Net unrealized gains (losses) included in net income | 1,000,000 | $ 0 |
Loans held for investment | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 16,000,000 | |
Total net gains (losses) included in net income | 0 | |
Purchases | 0 | |
Sales | 0 | |
Settlements | (2,000,000) | |
Net transfers into (out of) Level 3 | 3,000,000 | |
Ending balance | 17,000,000 | |
Net unrealized gains (losses) included in net income | $ 0 |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities - Nonrecurring Fair Value Measurements (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale | $ 449 | $ 405 |
Loans and leases | 58,600 | 58,232 |
Non Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans and leases | 69 | 77 |
OREO | 11 | 15 |
Other assets | 11 | 9 |
Non Recurring | First Mortgages | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale | 1 | 1 |
Non Recurring | Small Business Administration And USDA | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale | 300 | 509 |
Non Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans and leases | 0 | 0 |
OREO | 0 | 0 |
Other assets | 0 | 0 |
Non Recurring | Level 1 | First Mortgages | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale | 0 | 0 |
Non Recurring | Level 1 | Small Business Administration And USDA | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale | 0 | 0 |
Non Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans and leases | 0 | 0 |
OREO | 0 | 0 |
Other assets | 0 | 0 |
Non Recurring | Level 2 | First Mortgages | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale | 0 | 0 |
Non Recurring | Level 2 | Small Business Administration And USDA | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale | 299 | 508 |
Non Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans and leases | 69 | 77 |
OREO | 11 | 15 |
Other assets | 11 | 9 |
Non Recurring | Level 3 | First Mortgages | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale | 1 | 1 |
Non Recurring | Level 3 | Small Business Administration And USDA | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale | $ 1 | $ 1 |
Fair Value of Assets and Liab_6
Fair Value of Assets and Liabilities - Gains/(losses) on Nonrecurring Fair Value Measurements (Details) - Non Recurring - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net gains/(losses), Loans, net of unearned income | $ (7) | $ (5) |
Gain (loss) on financial assets measured on non-recurring basis | (8) | (6) |
SBAs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net gains/(losses), Loans held for sale | $ (1) | $ (1) |
Fair Value of Assets and Liab_7
Fair Value of Assets and Liabilities - Narrative (Details) - Corporate $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Segment Reporting Information [Line Items] | |
Fixed asset impairments | $ 33 |
Asset impairment charges | 33 |
Disposition of Acquired Properties | 2019 Business Optimization | |
Segment Reporting Information [Line Items] | |
Asset impairment charges | $ 3 |
Fair Value of Assets and Liab_8
Fair Value of Assets and Liabilities - Schedule Of Unobservable Inputs Utilized In Determining The Fair Value Of Level 3 Recurring And Non-Recurring Measurements (Details) $ in Millions | Mar. 31, 2021USD ($)month | Dec. 31, 2020USD ($)month |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | $ 8,351 | $ 8,047 |
Loans held-for-sale | 449 | 405 |
Derivative liability | 243 | 125 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 21 | 14 |
Loans net of unearned income | 69 | 77 |
OREO, fair value | 11 | 15 |
Loans held for sale | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment | 17 | 16 |
Other Assets | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other assets | $ 11 | $ 9 |
Constant prepayment rate | Minimum | Discounted cash flow | Loans held for sale | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-investment, measurement input | 0 | 0 |
Constant prepayment rate | Maximum | Discounted cash flow | Loans held for sale | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-investment, measurement input | 0.46 | 0.26 |
Constant prepayment rate | Weighted Average | Discounted cash flow | Loans held for sale | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-investment, measurement input | 31 | 0.11 |
Foreclosure losses | Minimum | Discounted cash flow | Loans Held For Sale, Residential Real Estate | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale, measurement input | 0.57 | 59 |
Foreclosure losses | Maximum | Discounted cash flow | Loans Held For Sale, Residential Real Estate | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale, measurement input | 0.65 | 70 |
Foreclosure losses | Weighted Average | Discounted cash flow | Loans Held For Sale, Residential Real Estate | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale, measurement input | 0.62 | 0.63 |
Constant default rate | Minimum | Discounted cash flow | Loans held for sale | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-investment, measurement input | 0 | 0 |
Constant default rate | Maximum | Discounted cash flow | Loans held for sale | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-investment, measurement input | 0.15 | 0.14 |
Constant default rate | Weighted Average | Discounted cash flow | Loans held for sale | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-investment, measurement input | 1 | 0.01 |
Loss severity | Minimum | Discounted cash flow | Loans held for sale | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-investment, measurement input | 0 | 0 |
Loss severity | Maximum | Discounted cash flow | Loans held for sale | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-investment, measurement input | 0.93 | 1 |
Loss severity | Weighted Average | Discounted cash flow | Loans held for sale | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-investment, measurement input | 7 | 0.11 |
Visa covered litigation resolution amount | Minimum | Discounted cash flow | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability, measurement input, value | $ 5,400 | $ 5,400 |
Visa covered litigation resolution amount | Maximum | Discounted cash flow | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability, measurement input, value | 6,000 | 6,000 |
Visa covered litigation resolution amount | Weighted Average | Discounted cash flow | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability, measurement input, value | $ 5,800 | $ 5,800 |
Probability of resolution scenarios | Minimum | Discounted cash flow | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability, measurement input | 0.10 | 10 |
Probability of resolution scenarios | Maximum | Discounted cash flow | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability, measurement input | 0.50 | 50 |
Probability of resolution scenarios | Weighted Average | Discounted cash flow | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability, measurement input | 0.16 | 0.16 |
Time until resolution | Minimum | Discounted cash flow | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability, measurement input | month | 12 | 3 |
Time until resolution | Maximum | Discounted cash flow | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability, measurement input | month | 36 | 27 |
Time until resolution | Weighted Average | Discounted cash flow | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability, measurement input | month | 26 | 19 |
Marketability adjustments for specific properties | Minimum | Appraisals from comparable properties | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans net of unearned income, measurement input | 0 | 0 |
Marketability adjustments for specific properties | Minimum | Appraisals from comparable properties | Other Assets | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other assets, measurement input | 0 | 0 |
Marketability adjustments for specific properties | Maximum | Appraisals from comparable properties | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans net of unearned income, measurement input | 0.10 | 10 |
Marketability adjustments for specific properties | Maximum | Appraisals from comparable properties | Other Assets | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other assets, measurement input | 0.25 | 25 |
Borrowing base certificates adjustment | Minimum | Other collateral valuations | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans net of unearned income, measurement input | 0.20 | 20 |
Borrowing base certificates adjustment | Maximum | Other collateral valuations | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans net of unearned income, measurement input | 0.50 | 50 |
Financial Statements/Auction values adjustment | Minimum | Other collateral valuations | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans net of unearned income, measurement input | 0 | 0 |
Financial Statements/Auction values adjustment | Maximum | Other collateral valuations | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans net of unearned income, measurement input | 0.25 | 25 |
Adjustment for value changes since appraisal | Minimum | Appraisals from comparable properties | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
OREO measurement input | 0 | 0 |
Adjustment for value changes since appraisal | Maximum | Appraisals from comparable properties | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
OREO measurement input | 0.10 | 10 |
Adjustments to current sales yields for specific properties | Minimum | Discounted cash flow | Other Assets | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other assets, measurement input | 0 | 0 |
Adjustments to current sales yields for specific properties | Maximum | Discounted cash flow | Other Assets | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other assets, measurement input | 0.15 | 15 |
Residential Real Estate | Loans Held For Sale, Residential Real Estate | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale | $ 13 | $ 13 |
First Mortgages | Prepayment Speeds | Minimum | Discounted cash flow | Loans Held For Sale, Residential Real Estate | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale, measurement input | 0.04 | 5 |
First Mortgages | Prepayment Speeds | Maximum | Discounted cash flow | Loans Held For Sale, Residential Real Estate | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale, measurement input | 0.13 | 15 |
First Mortgages | Prepayment Speeds | Weighted Average | Discounted cash flow | Loans Held For Sale, Residential Real Estate | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale, measurement input | 0.05 | 0.05 |
First Mortgages | Loss severity | Minimum | Discounted cash flow | Loans Held For Sale, Residential Real Estate | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale, measurement input | 0.09 | 3 |
First Mortgages | Loss severity | Maximum | Discounted cash flow | Loans Held For Sale, Residential Real Estate | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale, measurement input | 0.17 | 19 |
First Mortgages | Loss severity | Weighted Average | Discounted cash flow | Loans Held For Sale, Residential Real Estate | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale, measurement input | 0.12 | 0.12 |
Interest- only strips- AFS | Available-for-sale Securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | $ 22 | $ 32 |
Interest- only strips- AFS | Constant prepayment rate | Discounted cash flow | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale, measurement input | 0.12 | 0.12 |
Interest- only strips- AFS | Constant prepayment rate | Weighted Average | Discounted cash flow | Available-for-sale Securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale, measurement input | 0.12 | 0.12 |
Interest- only strips- AFS | Bond equivalent yield | Minimum | Discounted cash flow | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale, measurement input | 0.10 | 0.15 |
Interest- only strips- AFS | Bond equivalent yield | Maximum | Discounted cash flow | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale, measurement input | 0.13 | 0.17 |
Interest- only strips- AFS | Bond equivalent yield | Weighted Average | Discounted cash flow | Available-for-sale Securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale, measurement input | 0.11 | 0.15 |
SBAs | Loans Held For Sale - SBA | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale | $ 1 | $ 1 |
SBAs | Constant prepayment rate | Minimum | Discounted cash flow | Loans Held For Sale - SBA | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale, measurement input | 0.08 | 8 |
SBAs | Constant prepayment rate | Maximum | Discounted cash flow | Loans Held For Sale - SBA | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale, measurement input | 0.12 | 12 |
SBAs | Constant prepayment rate | Weighted Average | Discounted cash flow | Loans Held For Sale - SBA | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale, measurement input | 0.10 | 0.10 |
SBAs | Bond equivalent yield | Discounted cash flow | Loans Held For Sale - SBA | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale, measurement input | 0.08 | |
SBAs | Bond equivalent yield | Minimum | Discounted cash flow | Loans Held For Sale - SBA | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale, measurement input | 7 | |
SBAs | Bond equivalent yield | Maximum | Discounted cash flow | Loans Held For Sale - SBA | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale, measurement input | 8 | |
SBAs | Bond equivalent yield | Weighted Average | Discounted cash flow | Loans Held For Sale - SBA | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-sale, measurement input | 0.08 | 0.07 |
Fair Value of Assets and Liab_9
Fair Value of Assets and Liabilities - Summary Of Differences Between The Fair Value Carrying Amount Of Mortgages Held-For-Sale And Aggregate Unpaid Principal Amount (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Loans held-for-sale | $ 449 | $ 405 |
Loans held for investment | 17 | 16 |
Fair value carrying amount less aggregate unpaid principal - Total loans | 0 | (1) |
Nonaccrual loans | 1 | 1 |
Fair value carrying amount less aggregate unpaid principal - Nonaccrual loans | 0 | 0 |
Held for sale | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Loans held-for-sale | 449 | 405 |
Fair value carrying amount less aggregate unpaid principal - Total loans | 4 | (37) |
Nonaccrual loans | 2 | 2 |
Fair value carrying amount less aggregate unpaid principal - Nonaccrual loans | (3) | (3) |
Aggregate unpaid principal | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Loans held for investment | 17 | 17 |
Nonaccrual loans | 1 | 1 |
Aggregate unpaid principal | Held for sale | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Loans held-for-sale | 445 | 442 |
Nonaccrual loans | $ 5 | $ 5 |
Fair Value of Assets and Lia_10
Fair Value of Assets and Liabilities - Changes In Fair Value Of Assets And Liabilities Which Fair Value Option Included In Current Period Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Mortgage Banking Noninterest Income | Loans held for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Changes in fair value included in net income | $ (9) | $ 0 |
Fair Value of Assets and Lia_11
Fair Value of Assets and Liabilities - Summary Of Book Value And Estimated Fair Value Of Financial Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total loans, net of unearned income and allowance for loan losses | $ 57,686 | $ 57,269 |
Short-term financial assets: | ||
Interest-bearing deposits with banks | 11,635 | 8,351 |
Securities purchased under agreements to resell | 463 | 380 |
Trading securities | 1,076 | 1,176 |
Loans held for sale | 811 | 1,022 |
Securities available-for-sale | 8,351 | 8,047 |
Derivative assets | 543 | 765 |
Other assets: | ||
Total assets | 87,513 | 84,209 |
Liabilities: | ||
Trading Liabilities | 454 | 353 |
Short-term financial liabilities: | ||
Securities sold under agreements to repurchase | 1,098 | 1,187 |
Term borrowings: | ||
Other long term borrowings | 1,671 | 1,670 |
Gross amounts of recognized liabilities | 243 | 125 |
Total liabilities | 79,206 | 75,902 |
Fair Value, Inputs, Level 3 | FHLB-Cincinnati Stock | ||
Term borrowings: | ||
Restricted investments | 34 | 61 |
Fair Value, Inputs, Level 3 | FRB Stock | ||
Term borrowings: | ||
Restricted investments | 202 | 202 |
Reported Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total loans, net of unearned income and allowance for loan losses | 57,686 | 57,269 |
Short-term financial assets: | ||
Interest-bearing deposits with banks | 11,635 | 8,351 |
Federal funds sold and securities purchased under agreements to resell | 463 | 65 |
Securities purchased under agreements to resell | 57 | 380 |
Total short-term financial assets | 12,155 | 8,796 |
Trading securities | 1,076 | 1,176 |
Loans held for sale | 811 | 1,022 |
Securities available-for-sale | 8,351 | 8,047 |
Derivative assets | 561 | 770 |
Other assets: | ||
Tax credit investments | 410 | 400 |
Deferred compensation assets | 122 | 118 |
Equity, mutual funds, and other | 262 | 288 |
Total other assets | 794 | 806 |
Total assets | 81,434 | 77,886 |
Liabilities: | ||
Defined maturity | 4,653 | 5,070 |
Trading Liabilities | 454 | 353 |
Short-term financial liabilities: | ||
Federal funds purchased | 982 | 845 |
Securities sold under agreements to repurchase | 1,098 | 1,187 |
Other short-term borrowings | 122 | 166 |
Short Term Financial Liabilities | 2,202 | 2,198 |
Term borrowings: | ||
Real estate investment trust-preferred | 46 | 46 |
Term borrowings—new market tax credit investment | 45 | 45 |
Secured borrowings | 15 | 15 |
Junior subordinated debentures | 239 | 238 |
Other long term borrowings | 1,326 | 1,326 |
Total term borrowings | 1,671 | 1,670 |
Gross amounts of recognized liabilities | 265 | 149 |
Total liabilities | 9,245 | 9,440 |
Reported Value Measurement | Commercial, financial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total loans, net of unearned income and allowance for loan losses | 33,509 | 32,651 |
Reported Value Measurement | Commercial Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total loans, net of unearned income and allowance for loan losses | 12,238 | 12,033 |
Reported Value Measurement | Consumer Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total loans, net of unearned income and allowance for loan losses | 10,831 | 11,483 |
Reported Value Measurement | Credit Card and Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total loans, net of unearned income and allowance for loan losses | 1,108 | 1,102 |
Reported Value Measurement | Mortgage loans (elected fair value) | ||
Short-term financial assets: | ||
Loans held for sale | 449 | 405 |
Reported Value Measurement | Government guaranteed loans (SBA and USDA) | ||
Short-term financial assets: | ||
Loans held for sale | 300 | 509 |
Reported Value Measurement | Other consumer loans- LOCOM | ||
Short-term financial assets: | ||
Loans held for sale | 4 | 31 |
Reported Value Measurement | Mortgage loans - LOCOM | ||
Short-term financial assets: | ||
Loans held for sale | 58 | 77 |
Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total loans, net of unearned income and allowance for loan losses | 57,931 | 57,695 |
Short-term financial assets: | ||
Interest-bearing deposits with banks | 11,635 | 8,351 |
Federal funds sold and securities purchased under agreements to resell | 463 | 65 |
Securities purchased under agreements to resell | 57 | 380 |
Total short-term financial assets | 12,155 | 8,796 |
Trading securities | 1,076 | 1,176 |
Loans held for sale | 811 | 1,025 |
Securities available-for-sale | 8,351 | 8,047 |
Derivative assets | 561 | 769 |
Other assets: | ||
Tax credit investments | 400 | 371 |
Deferred compensation assets | 122 | 118 |
Equity, mutual funds, and other | 262 | 288 |
Total other assets | 784 | 777 |
Total assets | 81,669 | 78,285 |
Liabilities: | ||
Defined maturity | 4,664 | 5,083 |
Trading Liabilities | 454 | 353 |
Short-term financial liabilities: | ||
Federal funds purchased | 982 | 845 |
Securities sold under agreements to repurchase | 1,098 | 1,187 |
Other short-term borrowings | 122 | 166 |
Short Term Financial Liabilities | 2,202 | 2,198 |
Term borrowings: | ||
Real estate investment trust-preferred | 47 | 47 |
Term borrowings—new market tax credit investment | 45 | 45 |
Secured borrowings | 15 | 15 |
Junior subordinated debentures | 237 | 223 |
Other long term borrowings | 1,462 | 1,455 |
Total term borrowings | 1,806 | 1,785 |
Gross amounts of recognized liabilities | 267 | 149 |
Total liabilities | 9,393 | 9,568 |
Unfunded Commitments: | ||
Loan commitments | 1 | 2 |
Standby and other commitments | 6 | 6 |
Estimate of Fair Value Measurement | Commercial, financial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total loans, net of unearned income and allowance for loan losses | 33,249 | 32,582 |
Estimate of Fair Value Measurement | Commercial Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total loans, net of unearned income and allowance for loan losses | 12,265 | 12,079 |
Estimate of Fair Value Measurement | Consumer Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total loans, net of unearned income and allowance for loan losses | 11,283 | 11,903 |
Estimate of Fair Value Measurement | Credit Card and Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total loans, net of unearned income and allowance for loan losses | 1,134 | 1,131 |
Estimate of Fair Value Measurement | Mortgage loans (elected fair value) | ||
Short-term financial assets: | ||
Loans held for sale | 449 | 405 |
Estimate of Fair Value Measurement | Government guaranteed loans (SBA and USDA) | ||
Short-term financial assets: | ||
Loans held for sale | 300 | 512 |
Estimate of Fair Value Measurement | Other consumer loans- LOCOM | ||
Short-term financial assets: | ||
Loans held for sale | 4 | 31 |
Estimate of Fair Value Measurement | Mortgage loans - LOCOM | ||
Short-term financial assets: | ||
Loans held for sale | 58 | 77 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total loans, net of unearned income and allowance for loan losses | 0 | 0 |
Short-term financial assets: | ||
Interest-bearing deposits with banks | 11,635 | 8,351 |
Federal funds sold and securities purchased under agreements to resell | 0 | 0 |
Securities purchased under agreements to resell | 0 | 0 |
Total short-term financial assets | 11,635 | 8,351 |
Trading securities | 0 | 0 |
Loans held for sale | 0 | 0 |
Securities available-for-sale | 0 | 0 |
Derivative assets | 145 | 63 |
Other assets: | ||
Tax credit investments | 0 | 0 |
Deferred compensation assets | 122 | 118 |
Equity, mutual funds, and other | 25 | 25 |
Total other assets | 147 | 143 |
Total assets | 11,927 | 8,557 |
Liabilities: | ||
Defined maturity | 0 | 0 |
Trading Liabilities | 0 | 0 |
Short-term financial liabilities: | ||
Federal funds purchased | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
Other short-term borrowings | 0 | 0 |
Short Term Financial Liabilities | 0 | 0 |
Term borrowings: | ||
Real estate investment trust-preferred | 0 | 0 |
Term borrowings—new market tax credit investment | 0 | 0 |
Secured borrowings | 0 | 0 |
Junior subordinated debentures | 0 | 0 |
Other long term borrowings | 0 | 0 |
Total term borrowings | 0 | 0 |
Gross amounts of recognized liabilities | 116 | 71 |
Total liabilities | 116 | 71 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 1 | Commercial, financial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total loans, net of unearned income and allowance for loan losses | 0 | 0 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 1 | Commercial Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total loans, net of unearned income and allowance for loan losses | 0 | 0 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 1 | Consumer Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total loans, net of unearned income and allowance for loan losses | 0 | 0 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 1 | Credit Card and Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total loans, net of unearned income and allowance for loan losses | 0 | 0 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 1 | Mortgage loans (elected fair value) | ||
Short-term financial assets: | ||
Loans held for sale | 0 | 0 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 1 | Government guaranteed loans (SBA and USDA) | ||
Short-term financial assets: | ||
Loans held for sale | 0 | 0 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 1 | Other consumer loans- LOCOM | ||
Short-term financial assets: | ||
Loans held for sale | 0 | 0 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 1 | Mortgage loans - LOCOM | ||
Short-term financial assets: | ||
Loans held for sale | 0 | 0 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total loans, net of unearned income and allowance for loan losses | 0 | 0 |
Short-term financial assets: | ||
Interest-bearing deposits with banks | 0 | 0 |
Federal funds sold and securities purchased under agreements to resell | 463 | 65 |
Securities purchased under agreements to resell | 57 | 380 |
Total short-term financial assets | 520 | 445 |
Trading securities | 1,076 | 1,176 |
Loans held for sale | 740 | 935 |
Securities available-for-sale | 8,329 | 8,015 |
Derivative assets | 416 | 706 |
Other assets: | ||
Tax credit investments | 0 | 0 |
Deferred compensation assets | 0 | 0 |
Equity, mutual funds, and other | 0 | 0 |
Total other assets | 0 | 0 |
Total assets | 11,081 | 11,277 |
Liabilities: | ||
Defined maturity | 4,664 | 5,083 |
Trading Liabilities | 454 | 353 |
Short-term financial liabilities: | ||
Federal funds purchased | 982 | 845 |
Securities sold under agreements to repurchase | 1,098 | 1,187 |
Other short-term borrowings | 122 | 166 |
Short Term Financial Liabilities | 2,202 | 2,198 |
Term borrowings: | ||
Real estate investment trust-preferred | 0 | 0 |
Term borrowings—new market tax credit investment | 0 | 0 |
Secured borrowings | 0 | 0 |
Junior subordinated debentures | 0 | 0 |
Other long term borrowings | 1,462 | 1,455 |
Total term borrowings | 1,462 | 1,455 |
Gross amounts of recognized liabilities | 130 | 64 |
Total liabilities | 8,912 | 9,153 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 2 | Commercial, financial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total loans, net of unearned income and allowance for loan losses | 0 | 0 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 2 | Commercial Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total loans, net of unearned income and allowance for loan losses | 0 | 0 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 2 | Consumer Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total loans, net of unearned income and allowance for loan losses | 0 | 0 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 2 | Credit Card and Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total loans, net of unearned income and allowance for loan losses | 0 | 0 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 2 | Mortgage loans (elected fair value) | ||
Short-term financial assets: | ||
Loans held for sale | 437 | 393 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 2 | Government guaranteed loans (SBA and USDA) | ||
Short-term financial assets: | ||
Loans held for sale | 299 | 511 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 2 | Other consumer loans- LOCOM | ||
Short-term financial assets: | ||
Loans held for sale | 4 | 31 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 2 | Mortgage loans - LOCOM | ||
Short-term financial assets: | ||
Loans held for sale | 0 | 0 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total loans, net of unearned income and allowance for loan losses | 57,931 | 57,695 |
Short-term financial assets: | ||
Interest-bearing deposits with banks | 0 | 0 |
Federal funds sold and securities purchased under agreements to resell | 0 | 0 |
Securities purchased under agreements to resell | 0 | 0 |
Total short-term financial assets | 0 | 0 |
Trading securities | 0 | 0 |
Loans held for sale | 71 | 90 |
Securities available-for-sale | 22 | 32 |
Derivative assets | 0 | 0 |
Other assets: | ||
Tax credit investments | 400 | 371 |
Deferred compensation assets | 0 | 0 |
Equity, mutual funds, and other | 237 | 263 |
Total other assets | 637 | 634 |
Total assets | 58,661 | 58,451 |
Liabilities: | ||
Defined maturity | 0 | 0 |
Trading Liabilities | 0 | 0 |
Short-term financial liabilities: | ||
Federal funds purchased | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
Other short-term borrowings | 0 | 0 |
Short Term Financial Liabilities | 0 | 0 |
Term borrowings: | ||
Real estate investment trust-preferred | 47 | 47 |
Term borrowings—new market tax credit investment | 45 | 45 |
Secured borrowings | 15 | 15 |
Junior subordinated debentures | 237 | 223 |
Other long term borrowings | 0 | 0 |
Total term borrowings | 344 | 330 |
Gross amounts of recognized liabilities | 21 | 14 |
Total liabilities | 365 | 344 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 3 | Commercial, financial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total loans, net of unearned income and allowance for loan losses | 33,249 | 32,582 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 3 | Commercial Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total loans, net of unearned income and allowance for loan losses | 12,265 | 12,079 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 3 | Consumer Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total loans, net of unearned income and allowance for loan losses | 11,283 | 11,903 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 3 | Credit Card and Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total loans, net of unearned income and allowance for loan losses | 1,134 | 1,131 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 3 | Mortgage loans (elected fair value) | ||
Short-term financial assets: | ||
Loans held for sale | 12 | 12 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 3 | Government guaranteed loans (SBA and USDA) | ||
Short-term financial assets: | ||
Loans held for sale | 1 | 1 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 3 | Other consumer loans- LOCOM | ||
Short-term financial assets: | ||
Loans held for sale | 0 | 0 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 3 | Mortgage loans - LOCOM | ||
Short-term financial assets: | ||
Loans held for sale | 58 | 77 |
Contractual Amount | ||
Unfunded Commitments: | ||
Loan commitments | 20,881 | 20,796 |
Standby and other commitments | $ 720 | $ 751 |
Other Events - Narrative (Detai
Other Events - Narrative (Details) - USD ($) $ in Millions | May 03, 2021 | Mar. 31, 2021 |
Subsequent Event [Line Items] | ||
Liquidation amount | $ 488 | |
Subsequent Event | Series F Preferred Stock | ||
Subsequent Event [Line Items] | ||
Preferred stock issuance (in shares) | 1,500 | |
Liquidation amount | $ 150 | |
Preferred stock issuance | $ 146 | |
Annual dividend rate | 4.70% |
Uncategorized Items - fhn-20210
Label | Element | Value |
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | us-gaap:AccountingStandardsUpdate201613Member |