FIRST HORIZON CORP - FORM 8-K - EX-99.1

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8-K - 8-K - FIRST HORIZON CORP	d283962d8k.htm

Exhibit 99.1

LOGO

FOURTH QUARTER 2011

FINANCIAL SUPPLEMENT

If you need further information, please contact:

Aarti Bowman, Investor Relations

901-523-4017

aagoorha@firsthorizon.com

TABLE OF CONTENTS

LOGO


	Page
First Horizon National Corporation Segment Structure		3

Performance Highlights		4

Charges for Restructuring, Repositioning, & Efficiency Initiatives		6

Consolidated Results
Income Statement
Summary Results		7
Income Statement		8
Other Income and Other Expense		9
Balance Sheet
Period End Balance Sheet		10
Average Balance Sheet		11
Average Balance Sheet: Income and Expense		12
Average Balance Sheet: Yields and Rates		13
Mortgage Servicing Rights		14

Business Segment Detail
Segment Highlights		15
Regional Banking		16
Capital Markets		17
Corporate		18
Non-Strategic		19

Capital Highlights		20

Asset Quality
Asset Quality: Consolidated		21
Rollforwards of Nonperforming Loans and ORE Inventory		23
Asset Quality: Regional Banking and Corporate		24
Asset Quality: Non-Strategic		25
Asset Quality: Portfolio Metrics		26

Glossary of Terms		27

Non-GAAP to GAAP Reconciliation		28

Other Information

This financial supplement contains forward-looking statements involving significant risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward-looking information. Those factors include general economic and financial market conditions, including expectations of and actual timing and amount of interest rate movements including the slope of the yield curve, competition, customer and investor responses to these conditions, ability to execute business plans, geopolitical developments, recent and future legislative and regulatory developments, natural disasters, and items mentioned in this financial supplement and in First Horizon National Corporation’s (FHN) most recent press release, as well as critical accounting estimates and other factors described in FHN’s recent filings with the SEC. FHN disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements included herein or therein to reflect future events or developments.

Use of Non-GAAP Measures

Certain ratios are included in this financial supplement that are non-GAAP, meaning they are not presented in accordance with generally accepted accounting principles (GAAP) in the U.S. FHN’s management believes such ratios are relevant to understanding the capital position and results of the Company. The non-GAAP ratios presented in this financial supplement are tangible common equity to tangible assets, tangible book value per common share, tier 1 common to risk weighted assets, adjusted tangible common equity to risk weighted assets, and net interest margin adjusted for fully taxable equivalent (“FTE”). These ratios are reported to FHN’s management and Board of Directors through various internal reports. Additionally, disclosure of non-GAAP capital ratios provides a meaningful base for comparability to other financial institutions as the capital ratios have become an important measure of the capital strength of banks as demonstrated by the inclusion in the stress tests administered by the United States Treasury Department under the Capital Assistance Program. Non-GAAP measures are not formally defined by GAAP or codified in the federal banking regulations, and other entities may use calculation methods that differ from those used by FHN. Tier 1 capital is a regulatory term and is generally defined as the sum of core capital (including common equity and instruments that can not be redeemed at the option of the holder) adjusted for certain items under risk based capital regulations. Also a regulatory term, risk weighted assets includes total assets adjusted for credit risk and is used to determine capital ratios. Refer to the tabular reconciliation of non-GAAP to GAAP measures and presentation of the most comparable GAAP items on page 28 of this financial supplement.

FIRST HORIZON NATIONAL CORPORATION SEGMENT STRUCTURE

LOGO

Regional Banking

•

Traditional lending and deposit taking, investments, financial planning, trust services, asset management, and cash management

•

Correspondent banking which provides credit, depository, and other banking related services to other financial institutions

•

First lien mortgage originations through regional banking channels

Capital Markets

•

Fixed income sales, trading, and strategies for institutional clients in the U.S. and abroad

•

Other capital markets products such as portfolio advisory, derivatives, and loan trading

Corporate

•

Executive management, enterprise-wide risk management, corporate finance, corporate communications, low income housing activities, legal functions and funding for the corporation including any impact from balance sheet positioning

•

Various charges related to restructuring, repositioning, and efficiency initiatives

Non-Strategic

•

Wind-down businesses that include:

•

National consumer lending loan portfolios

•

Trust preferred loan portfolio

•

Legacy mortgage servicing

•

Exited businesses such as First Horizon Msaver, Inc. (“Msaver”), First Horizon Insurance, Inc. (“FHI”), and Highland Capital Management Corporation (“Highland Capital”) and associated restructuring, repositioning, and efficiency charges

PERFORMANCE HIGHLIGHTS

LOGO

Summary of Fourth Quarter 2011 Significant Items

(Millions)


Segment	Item	Income Statement	Amount	Comments
Corporate	Derivatives Liabilities Adjustment	Noninterest Expense: Other	$8.3 million	Increase in derivative liabilities due to expected decline in conversion ratio of Visa Class B Shares
Corporate	Interest on Tax Refund	Noninterest Income: Other	$4.0 million	Interest related to a tax refund
Corporate	Tax Audit Resolution	Provision/(Benefit) for Income Taxes	($5.9 million)	Reduction in tax expense associated with audit settlements and statute expirations
Corporate & Non-Strategic	Restructuring, Repositioning, and Efficiency Initiatives	Employee compensation, incentives, and benefits	$4.1 million	Primarily pre-tax severance related costs associated with efficiency initiatives within corporate and bank service functions

(Fourth Quarter 2011 vs. Third Quarter 2011)

Consolidated

•

Net income available to common shareholders was $34.9 million, or $.13 per diluted share, compared to $36.1 million, or $.14 per diluted share, in third quarter

•

Net interest income (“NII”) increased $2.5 million during fourth quarter primarily within regional banking due to increased loans to mortgage companies

•

Noninterest income (including security gains) was $181.2 million in fourth quarter, a decrease of $39.7 million from third quarter

•

Primarily driven by securities gains from sale of Visa shares within corporate in third quarter and a decline in fixed income revenue within capital markets in fourth quarter

•

Provision expense was $10.0 million in fourth quarter compared to $32.0 million in the third quarter

•

Prior quarter includes effects of sales of consumer and commercial nonperforming loans

•

Noninterest expense decreased $10.7 million to $312.0 million in fourth quarter

•

The regional banking, capital markets, and non-strategic segments had lower expenses during fourth quarter

•

Expenses within the corporate segment increased primarily due to an increase in the derivative liabilities associated with prior sales of Visa Class B shares

•

Period-end loan balance increased slightly in fourth quarter to $16.4 billion

•

Commercial and consumer loan growth more than offset runoff within the non-strategic portfolio

•

Average core deposits increased from $15.2 billion in third quarter to $15.3 billion in fourth quarter

Regional Banking

•

Net interest margin improved 6 basis points to 5.23%, NII increased $9.5 million to $150.1 million in fourth quarter

•

Increase in NII primarily attributable to higher balances of loans to mortgage companies

•

Provision credit was $12.7 million in fourth quarter compared to a credit of $22.7 million in prior quarter

•

Reflects continued aggregate improvement within the commercial portfolio somewhat offset by higher provision associated with the consumer portfolio

•

Third quarter included $4.3 million of provision expense related to commercial nonperforming loan (“NPL”) sales

•

Period-end loans increased $378.7 million

•

Noninterest income decreased to $64.4 million in fourth quarter from $68.0 million in third quarter

•

Deposit fee income decreased primarily due to the impact of the Durbin Amendment which became effective in fourth quarter resulting in lower interchange income

•

Noninterest expense decreased slightly to $136.4 million in fourth quarter from $137.3 million in prior quarter

•

Decline driven primarily by lower personnel costs

Capital Markets

•

Fixed income revenues decreased to $80.7 million in fourth quarter from $92.6 million in third quarter

•

Fixed income average daily revenue (“ADR”) was $1.3 million in fourth quarter, down from $1.4 million in prior quarter

•

Noninterest expense decreased to $66.7 million in fourth quarter from $77.2 million in prior quarter

•

Variable compensation costs decreased consistent with the decline in fixed income sales revenue

•

Legal fees decreased $4.7 million from third quarter

Corporate

•

NII was negative $3.8 million in fourth quarter compared to negative $.5 million in third quarter primarily due to a decline in income from investment securities

•

Noninterest income (including securities gains) decreased to $10.0 million from $38.1 million in prior quarter

•

Third quarter included $35.1 million of securities gains related to the sale of Visa Class B Shares

•

Fourth quarter included $4.0 million related to interest on a tax refund

•

Deferred compensation income improved due to market conditions and is mirrored by an increase in deferred compensation expense

•

Noninterest expense increased to $29.2 million in fourth quarter from $19.0 million in prior quarter

•

Increase to derivative liabilities in fourth quarter of $8.3 million associated with prior sales of Visa shares related to an expected decline in the conversion ratio for Visa Class B shares

PERFORMANCE HIGHLIGHTS (continued)

LOGO

(Fourth Quarter 2011 vs. Third Quarter 2011)

Non-Strategic

•

NII decreased $3.7 million to $27.0 million in fourth quarter due to contracting loan portfolios

•

Provision expense decreased to $22.7 million in fourth quarter from $54.7 million in prior quarter

•

Prior quarter provision included $31.4 million attributable to the sale of nonperforming loans

•

Noninterest income increased to $18.5 million in fourth quarter from $15.4 million in prior quarter due to a rise in mortgage banking income

•

Positive net hedging results decreased to $5.9 million from $7.0 million in prior quarter

•

Mortgage warehouse valuation adjustments were positive $.3 million in fourth quarter compared to negative $7.1 million in third quarter

•

Fourth quarter improvement due to lower effects of credit marks on delinquent loans and positive effects of interest rate changes

•

Noninterest expense decreased to $79.6 million in fourth quarter from $89.2 million in prior quarter

•

Provisioning for repurchase and foreclosure losses was $45.0 million in fourth quarter compared to $52.8 million in third quarter

•

Liability levels decreased from $169.3 million to $165.3 million in fourth quarter

•

New requests/private mortgage insurance (“MI”) cancellation notices were $177.7 million in fourth quarter, down $22.6 million from prior quarter

•

Active pipeline declined to $383.5 million from $417.9 million in prior quarter

•

Pipeline decrease reflects elevated volumes of resolutions related to MI cancellation notices where coverage was ultimately lost

•

Cumulative rescission rates averaging between 45% and 55% with average loss severities ranging between 50% and 60%

•

Contract employment and outsourcing costs decreased $1.3 million in fourth quarter to $9.9 million

•

Decrease primarily related to one-time costs associated with transition to new subservicer in third quarter

•

In prior quarter, discontinued operations, net of tax included an after-tax gain of $5.7 million related to the Msaver divestiture

Asset Quality

•

Allowance as a percentage of loans ratio decreased to 234 basis points from 277 basis points in prior quarter

•

Reflects a $65.3 million net allowance decrease in fourth quarter; decline primarily relates to the commercial portfolio

•

Provision expense decreased $22.0 million in fourth quarter driven by losses on nonperforming loan sales recognized in third quarter

•

Annualized net charge-offs decreased to 184 basis points of average loans from 265 basis points in prior quarter

•

Net charge-offs were $75.3 million in fourth quarter compared to $106.4 million in prior quarter

•

Prior quarter included $47.6 million of net charge-offs associated with nonperforming loan sales

•

Commercial net charge-offs increased $14.3 million to $34.9 million in fourth quarter

•

The increase is driven by a sizeable charge-off associated with one bank-related relationship (trust preferred and bank holding company loans)

•

Prior quarter included net charge-offs of $7.4 million associated with sales of nonperforming loans

•

Consumer net charge-offs were $40.3 million in fourth quarter; a decline of $45.4 million from prior quarter

•

Third quarter included net charge-offs of $40.2 million associated with a nonperforming mortgage loan bulk sale

•

Nonperforming assets (“NPAs”) decreased 11 percent from prior quarter; NPA ratio declined to 257 basis points from 302 basis points

•

Decline in NPAs primarily driven by improvement in the C&I portfolio and a sizeable charge-off related to a single bank-related credit in fourth quarter

•

Foreclosed assets declined as disposition activity continues and inflow continues to slow

•

Troubled debt restructurings (“TDRs”) were $382.2 million at the end of fourth quarter compared with $331.8 million in prior quarter

•

Commercial Portfolio:

•

Reserves decreased $61.4 million from prior quarter primarily driven by the C&I portfolio

•

Reflects continued aggregate improved risk profile resulting in upgrades within the C&I portfolio

•

Overall stabilization within the TRUPs and bank stock portfolio; the lowest tier borrowers remain under duress but are closely monitored

•

Consumer Portfolio:

•

Performance of the home equity portfolio was relatively stable; 30+ delinquency rates increased to 170 basis points from 161 basis points in prior quarter

•

Slight reserve increase primarily attributable to higher reserves associated with home equity TDRs

•

Allowance for loan loss (“ALLL”) balances for permanent mortgage decreased primarily due to lower balances and improvement in delinquencies

Taxes (Operating Results)

•

Fourth quarter includes approximately $15 million of positive effect from permanent tax credits

•

Includes approximately $6 million reduction in tax expense associated with audit settlements and statute expirations

Capital and Liquidity

•

Paid $0.01 per share dividend January 3, 2012

•

Launched $100 million stock repurchase program; utilized $44 million of program in fourth quarter

•

Current ratios strong (regulatory capital ratios estimated based on period-end balances)

•

9.05% for tangible common equity to tangible assets

•

14.16% for Tier 1

•

17.89% for Total Capital

•

11.70% for Tier 1 Common

CHARGES FOR RESTRUCTURING, REPOSITIONING, & EFFICIENCY INITIATIVES

Quarterly, Unaudited


(Thousands)	4Q11			3Q11			2Q11			1Q11			4Q10
By Income Statement Impact
Noninterest income
All other income and commissions	$	—		$	1,200		$	—		$	—		$	—
Noninterest expense
Employee compensation, incentives, and benefits		3,760			2,128			7,511			2,253			2,225
Occupancy		39			1,031			59			795			17
Legal and professional fees		(27	)		—			—			—			1
All other expense		220			74			9,026			13			2,801

Total loss before income taxes		(3,992	)		(2,033	)		(16,596	)		(3,061	)		(5,044	)
Income/(loss) from discontinued operations (a) (b)		(84	)		8,951			441			(10,514	)		(335	)

Net impact resulting from restructuring, repositioning, and efficiency initiatives	$	(4,076	)	$	6,918		$	(16,155	)	$	(13,575	)	$	(5,379	)

(a)	Includes amounts related to Msaver, First Horizon Insurance, and Highland Capital.

(b)	3Q11 includes a $9.4 million pre-tax gain related to the Msaver divestiture.

CONSOLIDATED SUMMARY RESULTS

Quarterly, Unaudited


(Dollars in thousands, except																4Q11 Change vs.						Twelve months ended					2011 vs.
per share data)	4Q11			3Q11			2Q11			1Q11			4Q10			3Q11			4Q10			2011		2010			2010
Income Statement Highlights
Net interest income	$	178,877		$	176,340		$	172,860		$	172,755		$	182,236			1	%		(2	)%	$	700,832	$	730,838			(4	)%
Noninterest income		180,993			185,725			187,592			195,537			189,483			(3	)%		(4	)%		749,847		921,803			(19	)%
Securities gains/(losses), net		203			35,162			1			798			15,681			NM			NM			36,164		10,922			NM

Total revenue		360,073			397,227			360,453			369,090			387,400			(9	)%		(7	)%		1,486,843		1,663,563			(11	)%

Noninterest expense		312,036			322,708			344,455			313,796			328,294			(3	)%		(5	)%		1,292,995		1,341,810			(4	)%
Provision for loan losses		10,000			32,000			1,000			1,000			45,000			(69	)%		(78	)%		44,000		270,000			(84	)%

Income before income taxes		38,037			42,519			14,998			54,294			14,106			(11	)%		NM			149,848		51,753			NM
Provision/(benefit) for income taxes		(526	)		8,367			(4,167	)		12,162			(6,637	)		NM			NM			15,836		(21,182	)		NM

Income from continuing operations		38,563			34,152			19,165			42,132			20,743			13	%		86	%		134,012		72,935			84	%
Income/(loss) from discontinued operations, net of tax		(752	)		4,828			3,671			871			(3,435	)		NM			78	%		8,618		(11,332	)		NM

Net income		37,811			38,980			22,836			43,003			17,308			(3	)%		NM			142,630		61,603			NM
Net income attributable to noncontrolling interest		2,871			2,875			2,844			2,844			2,840				*		1	%		11,434		11,402				*

Net income attributable to controlling interest		34,940			36,105			19,992			40,159			14,468			(3	)%		NM			131,196		50,201			NM
Preferred stock dividends		—			—			—			—			63,154			NM			NM			—		107,970			NM

Net income/(loss) available to common shareholders	$	34,940		$	36,105		$	19,992		$	40,159		$	(48,686	)		(3	)%		NM		$	131,196	$	(57,769	)		NM

Common Stock Data
Diluted EPS from continuing operations	$	0.13		$	0.12		$	0.06		$	0.15		$	(0.19	)		8	%		NM		$	0.47	$	(0.20	)		NM
Diluted EPS		0.13			0.14			0.08			0.15			(0.20	)		(7	)%		NM			0.50		(0.25	)		NM
Diluted shares		260,372			262,803			262,756			265,556			239,095			(1	)%		9	%		262,861		235,699			12	%
Period-end shares outstanding		257,468			263,619			263,699			263,335			263,366			(2	)%		(2	)%		NM		NM
Cash dividends declared per share	$	0.01		$	0.01		$	0.01		$	0.01			N/A									NM		NM
Stock dividend rate declared per share		N/A			N/A			N/A			N/A			1.8122	%								NM		NM

Balance Sheet Highlights (Period-End)
Total loans, net of unearned income (Restricted—$ .6 billion) (a)	$	16,397,127		$	16,241,402		$	16,061,646		$	15,972,372		$	16,782,572			1	%		(2	)%
Total deposits		16,213,009			15,698,255			15,896,027			15,350,967			15,208,231			3	%		7	%
Total assets (Restricted—$ .6 billion) (a)		24,789,384			25,571,469			25,054,066			24,438,344			24,698,952			(3	)%			*
Total liabilities (Restricted—$ .6 billion) (a)		22,104,747			22,828,239			22,372,684			21,798,287			22,020,947			(3	)%			*
Total equity		2,684,637			2,743,230			2,681,382			2,640,057			2,678,005			(2	)%			*

Asset Quality Highlights
Allowance for loan losses (Restricted—$ 31.8 million) (a)	$	384,351		$	449,645		$	524,091		$	589,128		$	664,799
Allowance / period-end loans		2.34	%		2.77	%		3.26	%		3.69	%		3.96	%
Net charge-offs	$	75,294		$	106,446		$	66,037		$	76,671		$	100,100
Net charge-offs (annualized) / average loans		1.84	%		2.65	%		1.67	%		1.93	%		2.36	%
Non-performing assets (NPA)	$	521,161		$	582,572		$	747,860		$	818,969		$	836,502
NPA % (b)		2.57	%		3.02	%		4.09	%		4.55	%		4.48	%

Key Ratios & Other
Return on average assets (annualized) (c)		0.60	%		0.62	%		0.37	%		0.71	%		0.27	%
Return on average common equity (annualized) (d)		5.69	%		5.90	%		3.36	%		6.82	%		(8.59	)%
Net interest margin (e) (f)		3.23	%		3.23	%		3.20	%		3.22	%		3.18	%
Fee income to total revenue (g)		50.29	%		51.30	%		52.04	%		53.09	%		50.97	%
Efficiency ratio (h)		86.71	%		89.13	%		95.56	%		85.20	%		88.32	%
Book value per common share	$	9.28		$	9.29		$	9.05		$	8.90		$	9.05
Tangible book value per common share (f)	$	8.66		$	8.68		$	8.43		$	8.21		$	8.31
Adjusted tangible common equity to risk weighted assets (f)		10.73	%		11.09	%		11.05	%		10.84	%		10.66	%
Full time equivalent employees		4,728			4,748			4,950			5,159			5,435				*		(13	)%

N/A—Not applicable

NM—Not meaningful

*	Amount is less than one percent.

(a)	Restricted balances parenthetically presented are as of December 31, 2011.

(b)	NPAs related to the loan portfolio over period-end loans plus foreclosed real estate and other assets.

(c)	Calculated using net income.

(d)	Calculated using net income available to common shareholders.

(e)	Net interest margin is computed using total net interest income adjusted for FTE.

(f)	Refer to the Non-GAAP to GAAP Reconciliation on page 28 of this financial supplement.

(g)	Ratio excludes securities gains/(losses).

(h)	Noninterest expense divided by total revenue excluding securities gains/(losses).

CONSOLIDATED INCOME STATEMENT

Quarterly, Unaudited


														4Q11 Change vs.
(Thousands)	4Q11			3Q11		2Q11			1Q11		4Q10			3Q11			4Q10
Interest income	$	209,715		$	208,360	$	206,757		$	207,605	$	217,260			1	%		(3	)%
Less: interest expense		30,838			32,020		33,897			34,850		35,024			(4	)%		(12	)%

Net interest income		178,877			176,340		172,860			172,755		182,236			1	%		(2	)%
Provision for loan losses (a)		10,000			32,000		1,000			1,000		45,000			(69	)%		(78	)%

Net interest income after provision for loan losses		168,877			144,340		171,860			171,755		137,236			17	%		23	%

Noninterest income:
Capital markets		87,756			99,557		77,921			90,057		94,573			(12	)%		(7	)%
Mortgage banking		18,008			12,751		32,101			27,726		16,057			41	%		12	%
Deposit transactions and cash management (b)		31,349			35,701		34,726			32,279		34,875			(12	)%		(10	)%
Trust services and investment management		5,822			6,086		6,684			6,360		6,330			(4	)%		(8	)%
Brokerage management fees and commissions		4,869			5,648		6,134			6,883		5,772			(14	)%		(16	)%
Insurance commissions		1,399			739		764			689		588			89	%		NM
Securities gains/(losses), net (c)		203			35,162		1			798		15,681			NM			NM
Other (d) (e)		31,790			25,243		29,262			31,543		31,288			26	%		2	%

Total noninterest income		181,196			220,887		187,593			196,335		205,164			(18	)%		(12	)%

Adjusted gross income after provision for loan losses		350,073			365,227		359,453			368,090		342,400			(4	)%		2	%

Noninterest expense:
Employee compensation, incentives, and benefits (d)		149,013			153,540		151,160			156,512		164,410			(3	)%		(9	)%
Repurchase and foreclosure provision		45,033			52,791		24,563			37,203		44,223			(15	)%		2	%
Operations services		10,601			11,978		13,907			13,861		14,832			(11	)%		(29	)%
Occupancy (d)		12,168			13,523		13,061			14,861		13,756			(10	)%		(12	)%
Legal and professional fees		12,708			18,132		20,451			18,352		16,086			(30	)%		(21	)%
FDIC premium expense (f)		5,504			5,904		8,839			8,055		9,326			(7	)%		(41	)%
Computer software		9,507			8,689		8,375			8,085		8,406			9	%		13	%
Contract employment and outsourcing (g)		12,514			14,352		8,142			6,888		7,826			(13	)%		60	%
Equipment rentals, depreciation, and maintenance		7,748			8,795		8,481			7,890		7,821			(12	)%		(1	)%
Foreclosed real estate		4,793			4,691		5,803			6,789		4,178			2	%		15	%
Communications and courier		4,384			4,428		5,069			5,219		5,134			(1	)%		(15	)%
Miscellaneous loan costs		1,354			959		859			1,492		1,796			41	%		(25	)%
Amortization of intangible assets		1,000			1,004		1,006			1,006		1,037			*			(4	)%
Other (d) (h) (i)		35,709			23,922		74,739			27,583		29,463			49	%		21	%

Total noninterest expense		312,036			322,708		344,455			313,796		328,294			(3	)%		(5	)%

Income before income taxes		38,037			42,519		14,998			54,294		14,106			(11	)%		NM
Provision/(benefit) for income taxes		(526	)		8,367		(4,167	)		12,162		(6,637	)		NM			NM

Income from continuing operations		38,563			34,152		19,165			42,132		20,743			13	%		86	%
Income/(loss) from discontinued operations, net of tax (d)		(752	)		4,828		3,671			871		(3,435	)		NM			78	%

Net income		37,811			38,980		22,836			43,003		17,308			(3	)%		NM
Net income attributable to noncontrolling interest		2,871			2,875		2,844			2,844		2,840			*			1	%

Net income attributable to controlling interest		34,940			36,105		19,992			40,159		14,468			(3	)%		NM
Preferred stock dividends		—			—		—			—		63,154			NM			NM

Net income/(loss) available to common shareholders	$	34,940		$	36,105	$	19,992		$	40,159	$	(48,686	)		(3	)%		NM

NM—Not meaningful

*	Amount is less than one percent.

Certain previously reported amounts have been reclassified to agree with current presentation.

(a)	3Q11 includes approximately $36 million of losses on sales of nonperforming loans.

(b)	4Q11 decrease primarily due to the impact of the Durbin Amendment which became effective in fourth quarter resulting in lower interchange income.

(c)	3Q11 includes a $35.1 million gain associated with the sale of a portion of Visa Class B Shares.

(d)	4Q11 and 3Q11 includes a portion of net charges related to Restructuring, Repositioning, & Efficiency Initiatives.

(e)	4Q11 includes $4.0 million of interest related to a tax refund.

(f)	3Q11 includes refinement of FDIC premium calculation methodology, which was first implemented in 2Q11.

(g)	3Q11 includes transition costs and elevated base subservicing costs in connection with the transition of servicing to a new mortgage servicer.

(h)	2Q11 includes a $36.7 million loss accrual related to a litigation settlement.

(i)	4Q11 includes an $8.3 million increase in derivative liabilities associated with prior sales of Visa shares related to an expected decline in the conversion ratio for Visa Class B shares.

OTHER INCOME AND OTHER EXPENSE

Quarterly, Unaudited


												4Q11 Change vs.
(Thousands)	4Q11		3Q11			2Q11		1Q11		4Q10		3Q11			4Q10
Other Income
Bank owned life insurance	$	4,764	$	5,116		$	4,920	$	4,815	$	7,732		(7	)%		(38	)%
Bankcard income (a)		7,259		5,258			5,151		4,720		4,977		38	%		46	%
ATM interchange fees (b)		2,655		3,709			3,791		3,535		3,748		(28	)%		(29	)%
Other service charges		3,541		2,969			2,819		2,853		2,844		19	%		25	%
Electronic banking fees		1,546		1,609			1,536		1,534		1,629		(4	)%		(5	)%
Letter of credit fees		1,230		1,407			1,869		1,776		1,508		(13	)%		(18	)%
Deferred compensation		376		(2,093	)		221		979		2,260		NM			(83	)%
Gains on extinguishment of debt		—		—			—		5,761		—		NM			NM
Other (c) (d)		10,419		7,268			8,955		5,570		6,590		43	%		58	%

Total	$	31,790	$	25,243		$	29,262	$	31,543	$	31,288		26	%		2	%

Other Expense
Losses from litigation and regulatory matters	$	2,194	$	—		$	38,260	$	2,325	$	—		NM			NM
Advertising and public relations		4,965		4,571			3,558		3,790		5,687		9	%		(13	)%
Low income housing expense		5,974		4,712			4,973		4,697		5,886		27	%		1	%
Other insurance and taxes		3,395		3,352			3,507		3,467		1,808		1	%		88	%
Travel and entertainment		2,342		2,075			2,137		1,770		2,429		13	%		(4	)%
Customer relations		1,301		1,185			1,152		1,270		1,720		10	%		(24	)%
Employee training and dues		1,172		1,009			1,342		1,247		1,119		16	%		5	%
Supplies		953		1,092			792		963		1,208		(13	)%		(21	)%
Bank examination costs		1,127		1,138			1,117		1,118		1,147		(1	)%		(2	)%
Loan insurance expense		676		744			706		781		603		(9	)%		12	%
Federal services fees		342		338			291		464		471		1	%		(27	)%
Other (c) (e)		11,268		3,706			16,904		5,691		7,385		NM			53	%

Total	$	35,709	$	23,922		$	74,739	$	27,583	$	29,463		49	%		21	%

NM—Not meaningful

*	Amount is less than one percent.

Certain previously reported amounts have been reclassified to agree with current presentation.

(a)	4Q11 includes $2.0 million related to Visa volume incentives.

(b)	4Q11 decrease primarily due to the impact of the Durbin Amendment which became effective in fourth quarter resulting in lower interchange income.

(c)	4Q11 and 3Q11 includes a portion of the net impact of Restructuring, Repositioning, & Efficiency Initiatives.

(d)	4Q11 includes $4.0 million of interest related to a tax refund.

(e)	4Q11 includes an $8.3 million increase in derivative liabilities associated with prior sales of Visa shares related to an expected decline in the conversion ratio for Visa Class B shares.

CONSOLIDATED PERIOD-END BALANCE SHEET

Quarterly, Unaudited


																4Q11 Change vs.
(Thousands)	4Q11			3Q11			2Q11			1Q11			4Q10			3Q11			4Q10
Assets
Investment securities	$	3,066,272		$	3,327,846		$	3,230,477		$	3,085,478		$	3,031,930			(8	)%		1	%
Loans held for sale		413,897			386,147			397,931			370,487			375,289			7	%		10	%
Loans, net of unearned income (Restricted—$ .6 billion) (a)		16,397,127			16,241,402			16,061,646			15,972,372			16,782,572			1	%		(2	)%
Federal funds sold and securities purchased under agreements to resell		443,588			719,400			598,000			527,563			424,390			(38	)%		5	%
Interest bearing cash (b)		452,856			358,537			263,441			308,636			517,739			26	%		(13	)%
Trading securities		988,217			1,227,197			1,196,380			924,854			769,750			(19	)%		28	%

Total earning assets		21,761,957			22,260,529			21,747,875			21,189,390			21,901,670			(2	)%		(1	)%

Cash and due from banks (Restricted—$4.9 million) (a)		384,667			339,895			313,416			337,002			344,384			13	%		12	%
Capital markets receivables		164,987			521,198			625,243			595,594			146,091			(68	)%		13	%
Mortgage servicing rights, net		144,069			150,803			186,958			207,748			207,319			(4	)%		(31	)%
Goodwill		133,659			133,659			135,683			152,080			162,180				*		(18	)%
Other intangible assets, net		26,243			27,243			28,384			31,545			32,881			(4	)%		(20	)%
Premises and equipment, net		321,253			326,667			330,392			320,871			322,319			(2	)%			*
Real estate acquired by foreclosure (c)		85,244			91,492			92,662			110,127			125,401			(7	)%		(32	)%
Allowance for loan losses (Restricted—$ 31.8 million) (a)		(384,351	)		(449,645	)		(524,091	)		(589,128	)		(664,799	)		15	%		42	%
Other assets (Restricted—$ 13.4 million) (a)		2,151,656			2,169,628			2,117,544			2,083,115			2,121,506			(1	)%		1	%

Total assets (Restricted—$.6 billion) (a)	$	24,789,384		$	25,571,469		$	25,054,066		$	24,438,344		$	24,698,952			(3	)%			*

Liabilities and Equity
Deposits
Savings	$	6,624,405		$	6,467,377		$	6,382,963		$	6,296,533		$	6,036,895			2	%		10	%
Other interest-bearing deposits		3,193,697			3,096,621			2,784,787			2,679,437			2,842,306			3	%		12	%
Time deposits		1,173,375			1,210,661			1,277,905			1,336,666			1,390,995			(3	)%		(16	)%

Total interest-bearing core deposits		10,991,477			10,774,659			10,445,655			10,312,636			10,270,196			2	%		7	%
Noninterest-bearing deposits		4,613,014			4,412,375			4,937,103			4,480,413			4,376,285			5	%		5	%

Total core deposits (d)		15,604,491			15,187,034			15,382,758			14,793,049			14,646,481			3	%		7	%

Certificates of deposit $100,000 and more		608,518			511,221			513,269			557,918			561,750			19	%		8	%

Total deposits		16,213,009			15,698,255			15,896,027			15,350,967			15,208,231			3	%		7	%

Federal funds purchased and securities sold under agreements to repurchase		1,887,052			2,101,953			2,005,999			2,125,793			2,114,908			(10	)%		(11	)%
Trading liabilities		347,285			471,120			498,915			384,250			361,920			(26	)%		(4	)%
Other short-term borrowings and commercial paper		172,550			621,998			187,902			237,583			180,735			(72	)%		(5	)%
Term borrowings (Restricted—$ .6 billion) (a)		2,481,660			2,509,804			2,502,517			2,514,754			3,228,070			(1	)%		(23	)%
Capital markets payables		164,708			509,164			464,993			413,334			65,506			(68	)%		NM
Other liabilities (Restricted—$ .1 million) (a)		838,483			915,945			816,331			771,606			861,577			(8	)%		(3	)%

Total liabilities (Restricted—$ .6 billion) (a)		22,104,747			22,828,239			22,372,684			21,798,287			22,020,947			(3	)%			*

Equity
Common stock (e)		160,918			164,762			164,812			164,584			164,604			(2	)%		(2	)%
Capital surplus		1,601,346			1,641,878			1,638,423			1,636,623			1,630,210			(2	)%		(2	)%
Capital surplus common stock warrant—(CPP)		—			—			—			—			83,860			NM			NM
Undivided profits		757,364			724,977			691,490			674,064			631,712			4	%		20	%
Accumulated other comprehensive loss, net		(130,156	)		(83,552	)		(108,508	)		(130,379	)		(127,546	)		(56	)%		(2	)%
Noncontrolling interest (f)		295,165			295,165			295,165			295,165			295,165				*			*

Total equity		2,684,637			2,743,230			2,681,382			2,640,057			2,678,005			(2	)%			*

Total liabilities and equity	$	24,789,384		$	25,571,469		$	25,054,066		$	24,438,344		$	24,698,952			(3	)%			*

NM—Not meaningful

*	Amount is less than one percent.

(a)	Restricted balances parenthetically presented are as of December 31, 2011.

(b)	Includes excess balances held at Fed.

(c)	4Q11 includes $16.4 million of foreclosed assets related to government insured mortgages.

(d)	4Q11 average core deposits were $15.3 billion.

(e)	4Q11 decrease relates to shares purchased under the share repurchase program.

(f)	Includes preferred stock of subsidiary.

CONSOLIDATED AVERAGE BALANCE SHEET

Quarterly, Unaudited


																4Q11 Change vs.
(Thousands)	4Q11			3Q11			2Q11			1Q11			4Q10			3Q11			4Q10
Assets:
Earning assets:
Loans, net of unearned income:
Commercial, financial, and industrial (C&I)	$	7,740,802		$	7,181,058		$	6,867,893		$	6,823,350		$	7,229,808			8	%		7	%
Income CRE		1,295,079			1,308,059			1,362,459			1,422,837			1,472,182			(1	)%		(12	)%
Residential CRE		132,669			169,049			203,721			249,777			306,292			(22	)%		(57	)%
Consumer real estate		5,295,881			5,346,893			5,436,358			5,549,490			5,706,103			(1	)%		(7	)%
Permanent mortgage		814,335			985,359			1,009,804			1,064,893			980,383			(17	)%		(17	)%
Credit card and other		289,189			292,800			299,904			299,861			318,000			(1	)%		(9	)%
Restricted real estate loans		654,142			681,469			708,966			741,413			779,793			(4	)%		(16	)%

Total loans, net of unearned income (Restricted—$ .7 billion) (a) (b)	$	16,222,097		$	15,964,687		$	15,889,105		$	16,151,621		$	16,792,561			2	%		(3	)%

Loans held for sale		399,271			384,108			366,557			353,384			385,047			4	%		4	%
Investment securities:
U.S. Treasuries		42,935			43,812			62,970			82,197			72,375			(2	)%		(41	)%
U.S. Government agencies		2,919,690			2,990,375			2,938,623			2,669,852			2,418,015			(2	)%		21	%
States and municipalities		17,681			19,365			23,869			26,015			38,914			(9	)%		(55	)%
Other		224,530			221,664			220,440			224,565			228,866			1	%		(2	)%

Total investment securities		3,204,836			3,275,216			3,245,902			3,002,629			2,758,170			(2	)%		16	%

Capital markets securities inventory		1,263,427			1,250,249			1,235,642			1,110,584			1,118,090			1	%		13	%
Mortgage banking trading securities		26,927			30,320			32,263			34,549			36,040			(11	)%		(25	)%
Other earning assets:
Federal funds sold and securities purchased under agreements to resell		641,464			660,048			653,984			581,861			553,432			(3	)%		16	%
Interest bearing cash (c)		479,621			403,482			381,586			586,411			1,312,006			19	%		(63	)%

Total other earning assets		1,121,085			1,063,530			1,035,570			1,168,272			1,865,438			5	%		(40	)%

Total earning assets (Restricted—$ .7 billion) (a)		22,237,643			21,968,110			21,805,039			21,821,039			22,955,346			1	%		(3	)%

Allowance for loan losses (Restricted—$ 32.1 million) (a)		(424,774	)		(507,478	)		(567,923	)		(644,107	)		(717,297	)		16	%		41	%
Cash and due from banks (Restricted—$ 8.3 million) (a)		337,755			346,100			343,162			351,488			338,619			(2	)%			*
Capital markets receivables		108,815			124,192			112,289			124,395			197,294			(12	)%		(45	)%
Premises and equipment, net		323,569			328,172			324,584			320,485			320,341			(1	)%		1	%
Other assets (Restricted—$ 13.5 million) (a)		2,479,298			2,519,020			2,500,864			2,596,870			2,694,155			(2	)%		(8	)%

Total assets (Restricted—$ .6 billion) (a)	$	25,062,306		$	24,778,116		$	24,518,015		$	24,570,170		$	25,788,458			1	%		(3	)%

Liabilities and equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Other interest-bearing deposits	$	2,991,676		$	2,900,808		$	2,673,090		$	2,662,421		$	3,010,572			3	%		(1	)%
Savings		6,559,779			6,479,880			6,320,779			6,184,409			5,926,061			1	%		11	%
Time deposits		1,190,464			1,244,602			1,315,764			1,360,180			1,434,238			(4	)%		(17	)%

Total interest-bearing core deposits		10,741,919			10,625,290			10,309,633			10,207,010			10,370,871			1	%		4	%
Certificates of deposit $100,000 and more		544,394			507,086			547,262			560,805			558,860			7	%		(3	)%

Federal funds purchased and securities sold under agreements to repurchase		2,170,222			2,081,379			2,130,832			2,259,138			2,618,819			4	%		(17	)%
Capital markets trading liabilities		629,019			626,982			620,726			561,429			514,992				*		22	%
Other short-term borrowings and commercial paper		362,579			284,163			340,015			172,601			207,315			28	%		75	%
Term borrowings (Restricted—$ .6 billion) (a)		2,506,088			2,491,227			2,499,794			2,838,034			2,856,014			1	%		(12	)%

Total interest-bearing liabilities		16,954,221			16,616,127			16,448,262			16,599,017			17,126,871			2	%		(1	)%

Noninterest-bearing deposits		4,519,590			4,546,876			4,574,342			4,414,758			4,470,436			(1	)%		1	%
Capital markets payables		68,662			102,831			79,463			79,389			98,738			(33	)%		(30	)%
Other liabilities		785,356			789,190			735,786			795,176			823,170				*		(5	)%
Equity		2,734,477			2,723,092			2,680,162			2,681,830			3,269,243				*		(16	)%

Total liabilities and equity (Restricted—$ .6 billion) (a)	$	25,062,306		$	24,778,116		$	24,518,015		$	24,570,170		$	25,788,458			1	%		(3	)%

NM—Not meaningful

*	Amount is less than one percent.

(a)	Restricted balances parenthetically presented are quarterly averages as of December 31, 2011.

(b)	Includes loans on nonaccrual status.

(c)	Includes excess balances held at Fed.

CONSOLIDATED NET INTEREST INCOME (a)

Quarterly, Unaudited


																4Q11 Change vs.
(Thousands)	4Q11			3Q11			2Q11			1Q11			4Q10			3Q11			4Q10
Interest Income:
Loans, net of unearned income (b)	$	169,169		$	163,773		$	162,281		$	164,747		$	175,650			3	%		(4	)%
Loans held for sale		3,859			5,126			3,267			3,657			3,487			(25	)%		11	%
Investment securities:
U.S. Treasuries		67			66			88			119			119			2	%		(44	)%
U.S. Government agencies		25,262			27,615			28,643			26,513			24,753			(9	)%		2	%
States and municipalities		99			115			196			208			154			(14	)%		(36	)%
Other		2,264			2,250			2,391			2,423			2,267			1	%			*

Total investment securities		27,692			30,046			31,318			29,263			27,293			(8	)%		1	%

Capital markets securities inventory		9,789			10,141			10,479			10,027			10,039			(3	)%		(2	)%
Mortgage banking trading securities		675			706			820			889			903			(4	)%		(25	)%
Other earning assets:
Federal funds sold and securities purchased under agreements to resell (c)		(32	)		(58	)		(93	)		78			130			45	%		NM
Interest bearing cash		213			180			180			330			806			18	%		(74	)%

Total other earning assets		181			122			87			408			936			48	%		(81	)%

Interest income	$	211,365		$	209,914		$	208,252		$	208,991		$	218,308			1	%		(3	)%

Interest Expense:
Interest-bearing deposits:
Other interest-bearing deposits	$	1,407		$	1,650		$	1,638		$	1,552		$	1,715			(15	)%		(18	)%
Savings		5,921			6,773			7,018			7,250			7,821			(13	)%		(24	)%
Time deposits		6,363			7,096			7,783			8,032			8,759			(10	)%		(27	)%

Total interest-bearing core deposits		13,691			15,519			16,439			16,834			18,295			(12	)%		(25	)%
Certificates of deposit $100,000 and more		2,166			2,328			2,612			2,710			2,894			(7	)%		(25	)%

Federal funds purchased and securities sold under agreements to repurchase		1,269			1,159			1,237			1,324			1,569			9	%		(19	)%
Capital markets trading liabilities		3,363			3,703			4,102			3,791			3,504			(9	)%		(4	)%
Other short-term borrowings and commercial paper		171			229			231			216			370			(25	)%		(54	)%
Term borrowings		10,178			9,081			9,274			9,975			8,392			12	%		21	%

Interest expense		30,838			32,019			33,895			34,850			35,024			(4	)%		(12	)%

Net interest income—tax equivalent basis		180,527			177,895			174,357			174,141			183,284			1	%		(2	)%
Fully taxable equivalent adjustment		(1,650	)		(1,555	)		(1,497	)		(1,386	)		(1,048	)		(6	)%		(57	)%

Net interest income	$	178,877		$	176,340		$	172,860		$	172,755		$	182,236			1	%		(2	)%

NM—Not meaningful

*	Amount is less than one percent.

Certain previously reported amounts have been reclassified to agree with current presentation.

(a)	Net interest income adjusted to a fully taxable equivalent (“FTE”) basis.

(b)	Includes loans on nonaccrual status.

(c)	4Q11, 3Q11, and 2Q11 driven by negative market rates on reverse repurchase agreements.

CONSOLIDATED AVERAGE BALANCE SHEET: YIELDS AND RATES

Quarterly, Unaudited


(Thousands)	4Q11			3Q11			2Q11			1Q11			4Q10
Assets:
Earning assets:
Loans, net of unearned income:
Commercial loans		3.95	%		3.84	%		3.90	%		3.84	%		3.99	%
Retail loans		4.42			4.37			4.31			4.42			4.36

Total loans, net of unearned income (a)		4.15			4.08			4.09			4.12			4.16

Loans held for sale		3.87			5.34			3.57			4.14			3.62
Investment securities:
U.S. Treasuries		0.62			0.60			0.56			0.59			0.65
U.S. Government agencies		3.46			3.69			3.90			3.97			4.09
States and municipalities		2.23			2.39			3.29			3.19			1.58
Other		4.03			4.06			4.34			4.32			3.96

Total investment securities		3.46			3.67			3.86			3.90			3.96

Capital markets securities inventory		3.10			3.24			3.39			3.61			3.59
Mortgage banking trading securities		10.03			9.31			10.17			10.29			10.02
Other earning assets:
Federal funds sold and securities purchased under agreements to resell (b)		(0.02	)		(0.03	)		(0.06	)		0.05			0.09
Interest bearing cash		0.18			0.18			0.19			0.23			0.24

Total other earning assets (c)		0.06			0.05			0.03			0.14			0.20

Interest income / total earning assets		3.78	%		3.80	%		3.83	%		3.86	%		3.79	%

Liabilities:
Interest-bearing liabilities:
Interest-bearing deposits:
Other interest-bearing deposits		0.19	%		0.23	%		0.25	%		0.24	%		0.23	%
Savings		0.36			0.41			0.45			0.48			0.52
Time deposits		2.12			2.26			2.37			2.39			2.42

Total interest-bearing core deposits		0.51			0.58			0.64			0.67			0.70
Certificates of deposit $100,000 and more		1.58			1.82			1.91			1.96			2.05

Federal funds purchased and securities sold under agreements to repurchase		0.23			0.22			0.23			0.24			0.24
Capital markets trading liabilities		2.12			2.34			2.65			2.74			2.70
Other short-term borrowings and commercial paper		0.19			0.32			0.27			0.51			0.71
Term borrowings (d)		1.63			1.46			1.49			1.41			1.18

Interest expense / total interest-bearing liabilities		0.72			0.77			0.83			0.85			0.81

Net interest spread		3.06	%		3.03	%		3.00	%		3.01	%		2.98	%
Effect of interest-free sources used to fund earning assets		0.17			0.20			0.20			0.21			0.20

Net interest margin		3.23	%		3.23	%		3.20	%		3.22	%		3.18	%

Yields are adjusted to a fully taxable equivalent (“FTE”) basis. Refer to the Non-GAAP to GAAP Reconciliation on page 28 for reconciliation of net interest income (GAAP) to net interest income adjusted for impact of FTE—(non-GAAP).

(a)	Includes loans on nonaccrual status.

(b)	4Q11, 3Q11, and 2Q11 driven by negative market rates on reverse repurchase agreements.

(c)	Earning assets yields are expressed net of unearned income.

(d)	Rates are expressed net of unamortized debenture cost for term borrowings.

MORTGAGE SERVICING RIGHTS

Quarterly, Unaudited


																4Q11 Change vs.
(Thousands)	4Q11			3Q11			2Q11			1Q11			4Q10			3Q11			4Q10
First Liens
Fair value beginning balance	$	147,431		$	183,530		$	204,257		$	203,812		$	188,397
Reductions due to loan payments		(3,567	)		(5,286	)		(5,522	)		(7,163	)		(10,160	)
Reductions due to sale		—			—			—			—			—
Reductions due to exercise of cleanup calls		—			—			(195	)		—			(1,110	)
Changes in fair value due to:
Changes in valuation model inputs or assumptions (a)		(3,140	)		(30,813	)		(15,010	)		7,592			26,685
Other changes in fair value		—			—			—			16			—

Fair value ending balance	$	140,724		$	147,431		$	183,530		$	204,257		$	203,812			(5	)%		(31	)%

Second Liens
Fair value beginning balance	$	241		$	251		$	259		$	262		$	250
Reductions due to loan payments		(10	)		(10	)		(8	)		(13	)		(17	)
Changes in fair value due to:
Other changes in fair value		—			—			—			10			29

Fair value ending balance	$	231		$	241		$	251		$	259		$	262			(4	)%		(12	)%

HELOC
Fair value beginning balance	$	3,131		$	3,177		$	3,232		$	3,245		$	3,296
Reductions due to loan payments		(54	)		(59	)		(59	)		(42	)		(76	)
Changes in fair value due to:
Other changes in fair value		37			13			4			29			25

Fair value ending balance	$	3,114		$	3,131		$	3,177		$	3,232		$	3,245			(1	)%		(4	)%

Total Consolidated
Fair value beginning balance	$	150,803		$	186,958		$	207,748		$	207,319		$	191,943
Reductions due to loan payments		(3,631	)		(5,355	)		(5,589	)		(7,218	)		(10,253	)
Reductions due to exercise of cleanup calls		—			—			(195	)		—			(1,110	)
Changes in fair value due to:
Changes in valuation model inputs or assumptions (a)		(3,140	)		(30,813	)		(15,010	)		7,592			26,685
Other changes in fair value		37			13			4			55			54

Fair value ending balance	$	144,069		$	150,803		$	186,958		$	207,748		$	207,319			(4	)%		(31	)%

(a)	Principally reflects changes in discount rates and prepayment speed assumptions, mostly due to changes in interest rates.

BUSINESS SEGMENT HIGHLIGHTS

Quarterly, Unaudited


																Twelve months ended						4Q11 change vs.						2011 vs.
(Thousands)	4Q11			3Q11			2Q11			1Q11			4Q10			2011			2010			3Q11			4Q10			2010
Regional Banking
Net interest income	$	150,119		$	140,612		$	136,304		$	134,773		$	144,492		$	561,808		$	557,200			7	%		4	%		1	%
Noninterest income		64,421			67,952			67,697			66,157			70,774			266,227			285,981			(5	)%		(9	)%		(7	)%

Total revenues		214,540			208,564			204,001			200,930			215,266			828,035			843,181			3	%			*		(2	)%
Provision for loan losses		(12,655	)		(22,698	)		(13,748	)		(12,404	)		2,002			(61,505	)		92,297			44	%		NM			NM
Noninterest expense		136,430			137,294			143,345			147,793			150,053			564,862			605,948			(1	)%		(9	)%		(7	)%

Income before income taxes		90,765			93,968			74,404			65,541			63,211			324,678			144,936			(3	)%		44	%		NM
Provision for income taxes		33,436			34,744			27,291			23,990			22,894			119,461			52,275			(4	)%		46	%		NM

Net income	$	57,329		$	59,224		$	47,113		$	41,551		$	40,317		$	205,217		$	92,661			(3	)%		42	%		NM

Capital Markets
Net interest income	$	5,526		$	5,552		$	5,509		$	5,503		$	5,877		$	22,090		$	21,649				*		(6	)%		2	%
Noninterest income		88,229			99,505			77,925			90,080			94,555			355,739			424,170			(11	)%		(7	)%		(16	)%

Total revenues		93,755			105,057			83,434			95,583			100,432			377,829			445,819			(11	)%		(7	)%		(15	)%
Noninterest expense (a)		66,721			77,168			103,383			73,563			76,812			320,835			318,188			(14	)%		(13	)%		1	%

Income/(loss) before income taxes		27,034			27,889			(19,949	)		22,020			23,620			56,994			127,631			(3	)%		14	%		(55	)%
Provision/(benefit) for income taxes		10,301			10,657			(7,756	)		8,406			8,829			21,608			47,809			(3	)%		17	%		(55	)%

Net income/(loss)	$	16,733		$	17,232		$	(12,193	)	$	13,614		$	14,791		$	35,386		$	79,822			(3	)%		13	%		(56	)%

Corporate
Net interest income/(expense)	$	(3,766	)	$	(493	)	$	404		$	(334	)	$	(2,091	)	$	(4,189	)	$	1,654			NM			(80	)%		NM
Noninterest income		10,003			38,058			9,007			12,871			26,252			69,939			64,027			(74	)%		(62	)%		9	%

Total revenues		6,237			37,565			9,411			12,537			24,161			65,750			65,681			(83	)%		(74	)%			*
Noninterest expense		29,242			19,013			36,288			20,672			19,014			105,215			70,749			54	%		54	%		49	%

Income/(loss) before income taxes		(23,005	)		18,552			(26,877	)		(8,135	)		5,147			(39,465	)		(5,068	)		NM			NM			NM
Provision/(benefit) for income taxes		(22,412	)		654			(18,859	)		(10,558	)		(9,018	)		(51,175	)		(39,973	)		NM			NM			(28	)%

Net income/(loss)	$	(593	)	$	17,898		$	(8,018	)	$	2,423		$	14,165		$	11,710		$	34,905			NM			NM			(66	)%

Non-Strategic
Net interest income	$	26,998		$	30,669		$	30,643		$	32,813		$	33,958		$	121,123		$	150,335			(12	)%		(20	)%		(19	)%
Noninterest income		18,543			15,372			32,964			27,227			13,583			94,106			158,547			21	%		37	%		(41	)%

Total revenues		45,541			46,041			63,607			60,040			47,541			215,229			308,882			(1	)%		(4	)%		(30	)%
Provision for loan losses		22,655			54,698			14,748			13,404			42,998			105,505			177,703			(59	)%		(47	)%		(41	)%
Noninterest expense		79,643			89,233			61,439			71,768			82,415			302,083			346,925			(11	)%		(3	)%		(13	)%

Loss before income taxes		(56,757	)		(97,890	)		(12,580	)		(25,132	)		(77,872	)		(192,359	)		(215,746	)		42	%		27	%		11	%
Benefit for income taxes		(21,851	)		(37,688	)		(4,843	)		(9,676	)		(29,342	)		(74,058	)		(81,293	)		42	%		26	%		9	%

Loss from continuing operations		(34,906	)		(60,202	)		(7,737	)		(15,456	)		(48,530	)		(118,301	)		(134,453	)		42	%		28	%		12	%
Income/(loss) from discontinued operations, net of tax		(752	)		4,828			3,671			871			(3,435	)		8,618			(11,332	)		NM			78	%		NM

Net loss	$	(35,658	)	$	(55,374	)	$	(4,066	)	$	(14,585	)	$	(51,965	)	$	(109,683	)	$	(145,785	)		36	%		31	%		25	%

Total Consolidated
Net interest income	$	178,877		$	176,340		$	172,860		$	172,755		$	182,236		$	700,832		$	730,838			1	%		(2	)%		(4	)%
Noninterest income		181,196			220,887			187,593			196,335			205,164			786,011			932,725			(18	)%		(12	)%		(16	)%

Total revenues		360,073			397,227			360,453			369,090			387,400			1,486,843			1,663,563			(9	)%		(7	)%		(11	)%
Provision for loan losses		10,000			32,000			1,000			1,000			45,000			44,000			270,000			(69	)%		(78	)%		(84	)%
Noninterest expense		312,036			322,708			344,455			313,796			328,294			1,292,995			1,341,810			(3	)%		(5	)%		(4	)%

Income before income taxes		38,037			42,519			14,998			54,294			14,106			149,848			51,753			(11	)%		NM			NM
Provision/(benefit) for income taxes		(526	)		8,367			(4,167	)		12,162			(6,637	)		15,836			(21,182	)		NM			92	%		NM

Income from continuing operations		38,563			34,152			19,165			42,132			20,743			134,012			72,935			13	%		86	%		84	%
Income/(loss) from discontinued operations, net of tax		(752	)		4,828			3,671			871			(3,435	)		8,618			(11,332	)		NM			78	%		NM

Net income	$	37,811		$	38,980		$	22,836		$	43,003		$	17,308		$	142,630		$	61,603			(3	)%		NM			NM

NM—Not meaningful

*	Amount is less than one percent.

Certain previously reported amounts have been reclassified to agree with current presentation.

(a)	2Q11 includes a $36.7 million loss accrual related to a litigation settlement.

REGIONAL BANKING

Quarterly, Unaudited


																4Q11 Change vs.
	4Q11			3Q11			2Q11			1Q11			4Q10			3Q11			4Q10
Income Statement (thousands)
Net interest income	$	150,119		$	140,612		$	136,304		$	134,773		$	144,492			7	%		4	%
Provision for loan losses		(12,655	)		(22,698	)		(13,748	)		(12,404	)		2,002			44	%		NM
Noninterest income		64,421			67,952			67,697			66,157			70,774			(5	)%		(9	)%
Noninterest expense		136,430			137,294			143,345			147,793			150,053			(1	)%		(9	)%

Income before income taxes	$	90,765		$	93,968		$	74,404		$	65,541		$	63,211			(3	)%		44	%

Efficiency ratio (a)		63.59	%		65.83	%		70.27	%		73.55	%		69.71	%

Balance Sheet (millions)
Average loans	$	11,458		$	10,841		$	10,525		$	10,515		$	10,994			6	%		4	%
Average other earning assets		56			58			57			70			103			(3	)%		(46	)%
Total average earning assets		11,514			10,899			10,582			10,585			11,097			6	%		4	%
Average core deposits		13,402			13,078			12,736			12,456			12,489			2	%		7	%
Average other deposits		544			507			547			561			560			7	%		(3	)%
Total average deposits		13,946			13,585			13,283			13,017			13,049			3	%		7	%
Total period end deposits		14,470			13,729			13,664			13,236			13,094			5	%		11	%
Total period end assets		12,535			12,066			11,413			11,045			11,636			4	%		8	%

Net interest margin (b)		5.23	%		5.17	%		5.22	%		5.20	%		5.20	%
Loan yield		4.01			4.01			4.02			4.04			4.07
Deposit average yield		0.41			0.48			0.54			0.57			0.60

Noninterest Income Detail (thousands)
NSF / Overdraft fees	$	13,466		$	14,239		$	13,316		$	11,749		$	13,678			(5	)%		(2	)%
Cash management fees		9,339			9,206			9,536			9,132			10,148			1	%		(8	)%
Debit card income (c)		2,523			6,826			6,941			6,414			6,414			(63	)%		(61	)%
Other		5,906			5,256			4,738			4,777			4,421			12	%		34	%

Total deposit transactions and cash management		31,234			35,527			34,531			32,072			34,661			(12	)%		(10	)%
Insurance commissions		1,392			732			756			679			579			90	%		NM
Trust services and investment management		5,837			6,098			6,714			6,354			6,312			(4	)%		(8	)%
Bankcard income (d)		6,905			4,882			4,759			4,322			4,564			41	%		51	%
Mortgage banking		1,389			1,121			947			2,591			5,736			24	%		(76	)%
Other service charges		3,369			3,312			3,359			3,526			3,506			2	%		(4	)%
Miscellaneous revenue (c)		14,295			16,280			16,631			16,613			15,416			(12	)%		(7	)%

Total noninterest income	$	64,421		$	67,952		$	67,697		$	66,157		$	70,774			(5	)%		(9	)%

Key Statistics
Financial center locations (thousands)		176			176			178			178			183			*			(4	)%
Trust assets—total managed assets (millions) (e)	$	3,345		$	3,296		$	3,421		$	4,756		$	4,955			1	%		(32	)%
First lien mortgage production (millions)	$	68		$	54		$	51		$	111		$	262			26	%		(74	)%

NM—Not meaningful

*	Amount is less than one percent.

Certain previously reported amounts have been reclassified to agree with current presentation.

(a)	Noninterest expense divided by total revenue.

(b)	Net interest margin is computed using total net interest income adjusted for FTE. Refer to the Non-GAAP to GAAP Reconciliation on page 28 of this supplement.

(c)	4Q11 decrease primarily due to the impact of the Durbin Amendment which became effective in fourth quarter resulting in lower interchange income.

(d)	4Q11 includes $2.0 million related to Visa volume incentives.

(e)	Decrease in total managed assets due to the divestiture of Highland Capital in 2Q11.

CAPITAL MARKETS

Quarterly, Unaudited


																4Q11 Change vs.
	4Q11			3Q11			2Q11			1Q11			4Q10			3Q11			4Q10
Income Statement (thousands)
Net interest income	$	5,526		$	5,552		$	5,509		$	5,503		$	5,877				*		(6	)%
Noninterest income:
Fixed income		80,741			92,624			71,164			83,194			86,106			(13	)%		(6	)%
Other		7,488			6,881			6,761			6,886			8,449			9	%		(11	)%

Total noninterest income		88,229			99,505			77,925			90,080			94,555			(11	)%		(7	)%
Noninterest expense ^(a)		66,721			77,168			103,383			73,563			76,812			(14	)%		(13	)%

Income/(loss) before income taxes	$	27,034		$	27,889		$	(19,949	)	$	22,020		$	23,620			(3	)%		14	%

Efficiency ratio ^(b)		71.17	%		73.45	%		NM			76.96	%		76.48	%
Fixed income average daily revenue	$	1,324		$	1,447		$	1,130		$	1,342		$	1,389			(9	)%		(5	)%

Balance Sheet (millions)
Average trading inventory	$	1,263		$	1,250		$	1,236		$	1,111		$	1,118			1	%		13	%
Average other earning assets		686			689			664			579			541				*		27	%
Total average earning assets		1,949			1,939			1,900			1,690			1,659			1	%		17	%
Total period end assets		1,905			2,782			2,693			2,268			1,529			(32	)%		25	%

Net interest margin ^(c)		1.16	%		1.17	%		1.17	%		1.31	%		1.44	%

NM—Not meaningful

*	Amount is less than one percent.

Certain previously reported amounts have been reclassified to agree with current presentation.

(a)	2Q11 includes a $36.7 million loss accrual related to a litigation settlement.

(b)	Noninterest expense divided by total revenue.

(c)	Net interest margin is computed using total net interest income adjusted for FTE. Refer to the Non-GAAP to GAAP Reconciliation on page 28 of this supplement.

CORPORATE

Quarterly, Unaudited


																4Q11 Change vs.
	4Q11			3Q11			2Q11			1Q11			4Q10			3Q11			4Q10
Income Statement (thousands)
Net interest income/(expense)	$	(3,766	)	$	(493	)	$	404		$	(334	)	$	(2,091	)		NM			(80	)%
Noninterest income (a)		9,800			2,911			9,005			12,100			10,718			NM			(9	)%
Securities gains, net (b)		203			35,147			2			771			15,534			NM			NM
Noninterest expense (c)		29,242			19,013			36,288			20,672			19,014			54	%		54	%

Income/(loss) before income taxes	$	(23,005	)	$	18,552		$	(26,877	)	$	(8,135	)	$	5,147			NM			NM

Average Balance Sheet (millions)
Average loans	$	152		$	170		$	154		$	159		$	35			(11	)%		NM
Total earning assets	$	3,815		$	3,812		$	3,747		$	3,710		$	4,048				*		(6	)%
Net interest margin (d)		(.36	)%		(.01	)%		.04	%		(.09	)%		(.17	)%

NM—Not meaningful

*	Amount is less than one percent.

Certain previously reported amounts have been reclassified to agree with current presentation.

(a)	4Q11 includes $4.0 million of interest related to a tax refund.

(b)	3Q11 includes a $35.1 million gain associated with the sale of a portion of Visa Class B Shares.

(c)	4Q11 includes an $8.3 million increase in derivative liabilities associated with prior sales of Visa shares related to an expected decline in the conversion ratio for Visa Class B shares.

(d)	Net interest margin is computed using total net interest income adjusted for FTE. Refer to the Non-GAAP to GAAP Reconciliation on page 28 of this supplement.

NON-STRATEGIC

Quarterly, Unaudited


																4Q11 Change vs.
	4Q11			3Q11			2Q11			1Q11			4Q10			3Q11			4Q10
Income Statement (thousands)
Net interest income	$	26,998		$	30,669		$	30,643		$	32,813		$	33,958			(12	)%		(20	)%
Noninterest income:
Mortgage warehouse valuation		265			(7,084	)		1,820			(1,316	)		(4,084	)		NM			NM
Service fees		13,368			16,731			19,248			20,827			17,119			(20	)%		(22	)%
Change in MSR value—runoff		(3,567	)		(5,286	)		(5,526	)		(7,164	)		(10,160	)		33	%		65	%
Hedging results		5,887			7,033			15,416			12,472			7,026			(16	)%		(16	)%
Other		2,590			3,963			2,006			2,382			3,535			(35	)%		27	%

Total noninterest income		18,543			15,357			32,964			27,201			13,436			21	%		38	%
Securities gains/(losses), net		—			15			—			26			147			NM			NM
Noninterest expense:
Repurchase and foreclosure provision		45,032			52,791			24,563			37,203			44,223			(15	)%		2	%
Other expenses		34,611			36,442			36,876			34,565			38,192			(5	)%		(9	)%

Total noninterest expense		79,643			89,233			61,439			71,768			82,415			(11	)%		(3	)%
Provision for loan losses		22,655			54,698			14,748			13,404			42,998			(59	)%		(47	)%

Loss before income taxes	$	(56,757	)	$	(97,890	)	$	(12,580	)	$	(25,132	)	$	(77,872	)		(42	)%		(27	)%

Average Balance Sheet (millions)
Loans	$	4,612		$	4,953		$	5,210		$	5,478		$	5,764			(7	)%		(20	)%
Loans held for sale		304			302			303			290			299			1	%		2	%
Trading securities		27			30			32			35			36			(10	)%		(25	)%
Mortgage servicing rights		149			174			194			208			192			(14	)%		(22	)%
Other assets		314			423			364			357			347			(26	)%		(10	)%
Total assets		5,406			5,882			6,103			6,368			6,638			(8	)%		(19	)%
Escrow balances		98			338			484			514			660			(71	)%		(85	)%
Net interest margin ^(a)		2.17	%		2.30	%		2.20	%		2.26	%		2.20	%
Efficiency ratio ^(b)		174.88	%		193.87	%		96.59	%		119.59	%		173.89	%

Mortgage Warehouse—Period-end (millions)
Ending warehouse balance (loans held for sale)	$	310		$	299		$	307		$	293		$	290			4	%		7	%

Key Servicing Metrics (millions) ^(c)
Ending servicing portfolio ^(d)	$	22,749		$	24,101		$	25,223		$	26,452		$	27,787			(6	)%		(18	)%
Average servicing portfolio ^(d)		23,466			24,562			25,666			26,862			28,418			(4	)%		(17	)%
Average number of loans serviced ^(d)		134,490			140,270			146,520			152,083			158,743			(4	)%		(15	)%

Portfolio Product Mix (average) ^(c)
GNMA		3	%		3	%		3	%		3	%		3	%
FNMA/FHLMC		35			36			36			36			36
Private		57			57			57			57			57

Sub-total		95			96			96			96			96
FHN permanent mortgage portfolio and warehouse		5			4			4			4			4

Total		100	%		100	%		100	%		100	%		100	%

Other Portfolio Statistics
Weighted average base servicing fee—legacy mortgage banking ^(e)		34			34			34			34			34
Weighted average base servicing fee—legacy equity lending (HELOCs and ILs)		50			50			50			50			50
Servicing cost per loan (annualized)^(f)	$	295.20		$	223.03		$	135.34		$	121.47		$	124.84
Servicing book value (bps) ^{(g) (h)}		68			75			79			80			72
90+ delinquency rate, excluding foreclosures ⁽ⁱ⁾		12.11	%		12.47	%		11.35	%		11.57	%		11.46	%

NM—Not meaningful

*	Amount is less than one percent.

Certain previously reported amounts have been reclassified to agree with current presentation.

(a)	Net interest margin is computed using total net interest income adjusted for FTE. Refer to the Non-GAAP to GAAP Reconciliation on page 28 of this supplement.

(b)	Noninterest expense divided by total revenue excluding securities gains/(losses).

(c)	Includes servicing of first liens, second liens, and HELOCs.

(d)	Includes mortgage loans serviced from FHN’s legacy mortgage banking business, legacy equity lending serviced for others, and mortgage loans in portfolio and warehouse. Excludes UPB of loans transferred that did not qualify for sales treatment.

(e)	Includes weighted average fee of servicing assets and excess interest.

(f)	Calculated based on fees charged by subservicer divided by average number of loans serviced during the quarter. Base subservicing costs increased driven by transfer to new subservicer.

(g)	Includes average MSR and mortgage trading securities divided by total average servicing portfolio.

(h)	For purposes of this calculation, average MSR excludes servicing transferred that did not qualify for sales treatment due to certain recourse provisions.

(i)	Excludes delinquency of second liens and HELOCs.

CAPITAL HIGHLIGHTS

Quarterly, Unaudited


																4Q11 Change vs.
(Dollars in thousands, except per share amounts)	4Q11			3Q11			2Q11			1Q11			4Q10			3Q11			4Q10
Tier 1 capital ^{(a) (b)}	$	2,854,120		$	2,875,113		$	2,818,535		$	2,790,335		$	2,812,471			(1	)%		1	%
Tier 2 capital ^(a)		753,474			751,227			748,225			868,792			937,115				*		(20	)%

Total capital ^(a)	$	3,607,594		$	3,626,340		$	3,566,760		$	3,659,127		$	3,749,586			(1	)%		(4	)%

Risk weighted assets (“RWA”)^(a)	$	20,160,440		$	19,910,843		$	19,589,310		$	19,569,006		$	20,102,775			1	%			*
Tier 1 ratio ^(a)		14.16	%		14.44	%		14.39	%		14.26	%		13.99	%
Tier 2 ratio ^(a)		3.73	%		3.77	%		3.82	%		4.44	%		4.66	%

Total capital ratio ^(a)		17.89	%		18.21	%		18.21	%		18.70	%		18.65	%

Tier 1 common ratio ^{(a) (c)}		11.70	%		11.95	%		11.86	%		11.73	%		11.53	%
Leverage ratio ^(a)		11.43			11.65			11.54			11.39			10.96
Shareholders’ equity/assets ratio ^(d)		10.83			10.73			10.70			10.80			10.84
Adjusted tangible common equity to risk weighted assets (“TCE/RWA”) ^{(a) (c) (e)}		10.73			11.09			11.05			10.84			10.66
Tangible common equity/tangible assets (“TCE/TA”) ^{(c) (d)}		9.05			9.00			8.93			8.91			8.93

*	Amount is less than one percent.

Certain previously reported amounts have been reclassified to agree with current presentation.

(a)	Current quarter is an estimate.

(b)	All quarters presented include $200 million of tier 1 qualifying trust preferred securities.

(c)	Refer to the Non-GAAP to GAAP Reconciliation on page 28 of this financial supplement.

(d)	Calculated using period-end balances.

(e)	See Glossary of Terms for definition of ratios.

ASSET QUALITY: CONSOLIDATED

Quarterly, Unaudited


																4Q11 Changes vs.
(Thousands)	4Q11			3Q11			2Q11			1Q11			4Q10			3Q11			4Q10
Allowance for Loan Losses Walk-Forward
Beginning reserve	$	449,645		$	524,091		$	589,128		$	664,799		$	719,899			(14	)%		(38	)%
Provision		10,000			32,000			1,000			1,000			45,000			(69	)%		(78	)%
Charge-offs		(85,918	)		(120,655	)		(83,344	)		(87,352	)		(110,797	)		29	%		22	%
Recoveries		10,624			14,209			17,307			10,681			10,697			(25	)%		(1	)%

Ending balance (Restricted—$31.8 million) (a)	$	384,351		$	449,645		$	524,091		$	589,128		$	664,799			(15	)%		(42	)%

Reserve for unfunded commitments		6,945			9,220			12,522			14,371			14,253			(25	)%		(51	)%
Total allowance for loan losses plus reserve for unfunded commitments	$	391,296		$	458,865		$	536,613		$	603,499		$	679,052			(15	)%		(42	)%

Allowance for Loan Losses
Regional Banking	$	187,791		$	232,269		$	278,693		$	310,470		$	349,572			(19	)%		(46	)%
Non-Strategic		196,560			217,376			245,398			278,658			315,227			(10	)%		(38	)%
Corporate (b)		NM			NM			NM			NM			NM			NM			NM

Total allowance for loan losses	$	384,351		$	449,645		$	524,091		$	589,128		$	664,799			(15	)%		(42	)%

Nonperforming Assets
Regional Banking
Nonperforming loans	$	199,000		$	239,666		$	283,754		$	317,109		$	326,986			(17	)%		(39	)%
Foreclosed real estate		16,563			24,943			28,121			33,134			30,138			(34	)%		(45	)%

Total Regional Banking	$	215,563		$	264,609		$	311,875		$	350,243		$	357,124			(19	)%		(40	)%

Non-Strategic
Nonperforming loans - including held for sale (c)	$	253,069		$	262,645		$	384,174		$	406,305		$	398,422			(4	)%		(36	)%
Foreclosed real estate		52,322			55,111			50,671			61,281			80,398			(5	)%		(35	)%

Total Non-Strategic	$	305,391		$	317,756		$	434,845		$	467,586		$	478,820			(4	)%		(36	)%

Corporate
Nonperforming loans	$	207		$	207		$	1,140		$	1,140		$	558				*		(63	)%

Total nonperforming assets	$	521,161		$	582,572		$	747,860		$	818,969		$	836,502			(11	)%		(38	)%

Net Charge-Offs
Regional Banking	$	31,823		$	23,727		$	18,033		$	26,703		$	34,683			34	%		(8	)%
Non-Strategic		43,471			82,719			48,004			49,968			65,417			(47	)%		(34	)%

Total net charge-offs	$	75,294		$	106,446		$	66,037		$	76,671		$	100,100			(29	)%		(25	)%

Consolidated Key Ratios (d)
NPL %		2.16	%		2.55	%		3.62	%		3.99	%		3.85	%
NPA %		2.57			3.02			4.09			4.55			4.48
Net charge-offs %		1.84			2.65			1.67			1.93			2.36
Allowance / loans		2.34			2.77			3.26			3.69			3.96
Allowance / NPL		1.09	x		1.09	x		0.90	x		0.92	x		1.03	x
Allowance / NPA		0.91	x		0.91	x		0.79	x		0.81	x		0.88	x
Allowance / charge-offs		1.28	x		1.06	x		1.98	x		1.92	x		1.66	x

Other
Loans past due 90 days or more (e)	$	106,425		$	102,420		$	108,923		$	125,989		$	128,653			4	%		(17	)%
Guaranteed portion (e)		42,249			39,572			39,613			37,858			39,883			7	%		6	%
Foreclosed real estate from government insured loans		16,360			11,438			13,870			15,711			14,865			43	%		10	%
Period-end loans, net of unearned income (millions)		16,397			16,241			16,062			15,972			16,783			1	%		(2	)%
Remaining unfunded commitments (millions)		7,435			7,418			7,938			8,285			7,905				*		(6	)%

NM—Not meaningful

*	Amount is less than one percent

Certain previously reported amounts have been reclassified to agree with current presentation.

(a)	Restricted balances parenthetically presented are as of December 31, 2011. See Glossary of Terms for definition of restricted balances.

(b)	The valuation adjustment taken upon exercise of clean-up calls include expected losses.

(c)	4Q11 includes $98.2 million of loans held for sale.

(d)	See Glossary of Terms for definitions of Consolidated Key Ratios.

(e)	Includes loans held for sale.

ASSET QUALITY: CONSOLIDATED

Quarterly, Unaudited


																4Q11 Changes vs.
	4Q11			3Q11			2Q11			1Q11			4Q10			3Q11			4Q10
Key Portfolio Details
C&I
Period-end loans ($ millions)	$	8,015		$	7,706		$	7,180		$	6,808		$	7,338			4	%		9	%

30+ Delinq. % (a)		0.15	%		0.43	%		0.52	%		0.46	%		0.36	%
NPL %		2.02			2.60			2.96			3.13			2.92
Charge-offs % (qtr. annualized) (b)		1.62			0.70			0.35			0.60			0.79

Allowance / loans %		1.63	%		2.37	%		2.87	%		3.24	%		3.26	%
Allowance / charge-offs		1.03	x		3.61	x		8.72	x		5.46	x		4.17	x

Income CRE
Period-end loans ($ millions)	$	1,257		$	1,287		$	1,311		$	1,398		$	1,407			(2	)%		(11	)%

30+ Delinq. % (a)		0.76	%		1.47	%		1.11	%		1.12	%		1.20	%
NPL %		5.50			6.27			8.54			10.07			10.06
Charge-offs % (qtr. annualized)		0.44			1.40			1.03			2.26			3.63

Allowance / loans %		3.15	%		3.67	%		6.04	%		7.05	%		8.87	%
Allowance / charge-offs		6.91	x		2.56	x		5.63	x		3.11	x		2.31	x

Residential CRE
Period-end loans ($ millions)	$	121		$	142		$	183		$	221		$	264			(15	)%		(54	)%

30+ Delinq. % (a)		0.72	%		0.61	%		5.14	%		5.08	%		3.19	%
NPL %		37.87			38.80			38.40			42.19			42.04
Charge-offs % (qtr. annualized)		5.96			8.01			8.19			4.96			6.54

Allowance / loans %		13.20	%		12.67	%		11.10	%		11.30	%		11.51	%
Allowance / charge-offs		2.00	x		1.31	x		1.22	x		2.05	x		1.50	x

Consumer Real Estate
Period-end loans ($ millions)	$	5,291		$	5,305		$	5,383		$	5,487		$	5,618			*			(6	)%

30+ Delinq. % (a)		1.70	%		1.61	%		1.52	%		1.73	%		2.07	%
NPL %		0.67			0.80			0.64			0.69			0.58
Charge-offs % (qtr. annualized)		1.85			2.04			2.34			2.50			2.94

Allowance / loans %		2.63	%		2.55	%		2.47	%		2.60	%		2.67	%
Allowance / charge-offs		1.41	x		1.23	x		1.05	x		1.04	x		0.89	x

Permanent Mortgage
Period-end loans ($ millions) (c)	$	788		$	838		$	1,015		$	1,038		$	1,087			(6	)%		(28	)%

30+ Delinq. % (a)		3.33	%		5.21	%		4.00	%		5.47	%		5.16	%
NPL % (c)		4.15			2.87			13.53			12.64			11.27
Charge-offs % (qtr. annualized) (d)		2.74			18.83			3.21			3.34			3.58

Allowance / loans %		2.55	%		3.12	%		4.28	%		5.04	%		5.49	%
Allowance / charge-offs		0.90	x		0.14	x		1.34	x		1.49	x		1.68	x

Credit Card and Other
Period-end loans ($ millions)	$	284		$	299		$	295		$	298		$	312			(5	)%		(9	)%

30+ Delinq. % (a)		1.33	%		1.29	%		1.20	%		1.34	%		1.43	%
NPL %		0.75			1.69			3.21			5.12			6.18
Charge-offs % (qtr. annualized)		5.60			5.27			5.61			4.43			6.00

Allowance / loans %		2.49	%		2.84	%		3.08	%		3.36	%		4.13	%
Allowance / charge-offs		0.43	x		0.55	x		0.54	x		0.76	x		0.67	x

Restricted Real Estate Loans
Period-end loans ($ millions) (e)	$	641		$	666		$	694		$	722		$	757			(4	)%		(15	)%

30+ Delinq. % (a)		3.15	%		2.98	%		2.85	%		2.94	%		3.12	%
NPL %		1.04			0.87			0.80			0.75			0.82
Charge-offs % (qtr. annualized)		3.63			4.46			4.76			5.08			5.71

Allowance / loans %		4.97	%		4.86	%		4.76	%		5.52	%		6.26	%
Allowance / charge-offs		1.33	x		1.06	x		0.98	x		1.07	x		1.06	x

*	Amount is less than one percent

Certain previously reported amounts have been reclassified to agree with current presentation.

(a)	30+ Delinquency % includes all accounts delinquent more than one month and still accruing interest.

(b)	4Q11 includes a $20.6 million charge-off associated with one bank-related relationship (TRUP and bank holding company loans).

(c)	3Q11 includes the impact of the sale of $126 million in book value of nonperforming permanent mortgages.

(d)	3Q11 includes $40.2 million of net charge-offs (“NCO”) recognized due to sale of nonperforming mortgages.

(e)	4Q11 includes $600.2 million of consumer real estate loans and $40.6 million of permanent mortgage loans.

ROLLFORWARDS OF NONPERFORMING LOANS AND ORE INVENTORY

Unaudited


(Millions)	4Q11			3Q11			2Q11			1Q11			4Q10
NPL Rollforward (a)
Beginning NPLs	$	341		$	404		$	462		$	486		$	580
+ Additions		17			36			31			46			54
+ Principal Increase		1			2			2			4			3
- Resolutions and payments		(39	)		(54	)		(66	)		(47	)		(97	)
- Net Charge-Offs		(37	)		(22	)		(15	)		(22	)		(34	)
- Transfer to OREO		(3	)		(10	)		(5	)		(3	)		(14	)
- Upgrade to Accrual		(1	)		(15	)		(5	)		(2	)		(6	)

Ending NPLs		$279			$341			$404			$462			$486


(a) Includes Commercial and One-Time Close Portfolios only.

(Millions)	4Q11			3Q11			2Q11			1Q11			4Q10
ORE Inventory Rollforward (b)
Beginning balance	$	80.1		$	78.8		$	94.4		$	110.5		$	123.4
Valuation adjustments		(4.4	)		(4.3	)		(4.6	)		(5.0	)		(4.2	)

Adjusted balance	$	75.7		$	74.5		$	89.8		$	105.5		$	119.2
+ New OREO		13.9			17.0			17.0			16.1			29.4
+ Capitalized expenses		0.2			0.5			1.0			0.6			1.0
Disposals:
- Single transactions		(20.7	)		(10.2	)		(24.7	)		(27.4	)		(39.0	)
- Bulk sales		(0.2	)		(1.7	)		(4.3	)		—			(0.1	)
- Auctions		—			—			—			(0.4	)		—

Ending balance	$	68.9		$	80.1		$	78.8		$	94.4		$	110.5

(b)	OREO excludes foreclosed assets related to government insured mortgages.

ASSET QUALITY: REGIONAL BANKING

Quarterly, Unaudited


																4Q11 Changes vs.
	4Q11			3Q11			2Q11			1Q11			4Q10			3Q11			4Q10
Total Regional Banking
Period-end loans ($ millions)	$	11,753		$	11,374		$	10,828		$	10,482		$	11,036			3	%		6	%

30+ Delinq. % (a)		0.41	%		0.61	%		0.82	%		0.84	%		0.80	%
NPL %		1.69			2.11			2.62			3.03			2.96
Charge-offs % (qtr. annualized)		1.10			0.87			0.69			1.03			1.25

Allowance / loans %		1.60	%		2.04	%		2.57	%		2.96	%		3.17	%
Allowance / charge-offs		1.48	x		2.45	x		3.86	x		2.91	x		2.52	x

Key Portfolio Details
C&I
Period-end loans ($ millions)	$	7,465		$	7,139		$	6,600		$	6,223		$	6,746			5	%		11	%

30+ Delinq. % (a)		0.16	%		0.45	%		0.56	%		0.48	%		0.40	%
NPL %		1.18			1.62			1.99			2.39			2.36
Charge-offs % (qtr. annualized) (b)		1.26			0.73			0.39			0.66			0.83

Allowance / loans %		1.36	%		1.95	%		2.43	%		2.77	%		2.80	%
Allowance / charge-offs		1.11	x		2.87	x		6.61	x		4.27	x		3.40	x

Income CRE
Period-end loans ($ millions)	$	1,208		$	1,235		$	1,245		$	1,278		$	1,271			(2	)%		(5	)%

30+ Delinq. % (a)		0.43	%		0.63	%		1.17	%		1.23	%		1.06	%
NPL %		5.08			5.75			7.76			8.04			7.62
Charge-offs % (qtr. annualized)		0.40			1.17			0.91			1.94			2.28

Allowance / loans %		2.95	%		3.49	%		5.88	%		6.93	%		8.53	%
Allowance / charge-offs		7.03	x		2.94	x		6.39	x		3.59	x		3.56	x

Residential CRE
Period-end loans ($ millions)	$	93		$	103		$	124		$	142		$	169			(10	)%		(45	)%

30+ Delinq. % (a)		0.40	%		0.56	%		6.87	%		7.35	%		4.98	%
NPL %		40.28			36.74			35.22			36.09			34.98
Charge-offs % (qtr. annualized)		7.38			4.91			7.64			5.61			9.11

Allowance / loans %		14.33	%		14.27	%		12.62	%		13.51	%		13.15	%
Allowance / charge-offs		1.80	x		2.54	x		1.55	x		2.19	x		1.29	x

Consumer Real Estate
Period-end loans ($ millions)	$	2,706		$	2,604		$	2,571		$	2,554		$	2,555			4	%		6	%

30+ Delinq. % (a)		1.02	%		0.99	%		0.96	%		1.07	%		1.37	%
NPL %		0.45			0.57			0.48			0.54			0.46
Charge-offs % (qtr. annualized)		0.55			0.61			0.63			1.05			0.90

Allowance / loans %		1.15	%		1.09	%		0.88	%		0.91	%		0.87	%
Allowance / charge-offs		2.12	x		1.79	x		1.40	x		0.88	x		0.96	x

Credit Card, Permanent Mortgage, and Other
Period-end loans ($ millions)	$	281		$	293		$	288		$	285		$	295			(4	)%		(5	)%

30+ Delinq. % (a)		1.13	%		1.19	%		1.23	%		1.57	%		1.65	%
NPL %		0.02			0.03			0.12			0.12			0.05
Charge-offs % (qtr. annualized)		3.08			3.52			3.52			2.34			4.13

Allowance / loans %		2.27	%		2.40	%		2.41	%		2.51	%		2.67	%
Allowance / charge-offs		0.72	x		0.69	x		0.68	x		1.08	x		0.64	x

ASSET QUALITY: CORPORATE
Permanent Mortgage
Period-end loans ($ millions)	$	141		$	161		$	175		$	151		$	168			(12	)%		(16	)%

30+ Delinq. % (a)		0.67	%		0.73	%		2.03	%		1.98	%		2.46	%
NPL %		0.15			0.13			0.65			0.76			0.33
Charge-offs % (qtr. annualized)		NM			NM			NM			NM			NM

Allowance / loans %		NM			NM			NM			NM			NM
Allowance / charge-offs		NM			NM			NM			NM			NM

NM—Not meaningful

Certain previously reported amounts have been reclassified to agree with current presentation.

(a)	30+ Delinquency % includes all accounts delinquent more than one month and still accruing interest.

(b)	4Q11 includes a $11.7 million charge-off associated with one bank holding company loan.

ASSET QUALITY: NON-STRATEGIC

Quarterly, Unaudited


																4Q11 Changes vs.
	4Q11			3Q11			2Q11			1Q11			4Q10			3Q11			4Q10
Total Non-Strategic Lending
Period-end loans ($ millions)	$	4,503		$	4,706		$	5,059		$	5,339		$	5,578			(4	)%		(19	)%

30+ Delinq. % (a)		2.52	%		2.87	%		2.27	%		2.69	%		2.87	%
NPL %		3.44			3.69			5.86			5.97			5.72
Charge-offs % (qtr. annualized)		3.74			6.62			3.70			3.70			4.50

Allowance / loans %		4.37	%		4.62	%		4.85	%		5.22	%		5.65	%
Allowance / charge-offs		1.13	x		0.66	x		1.28	x		1.39	x		1.20	x

Key Portfolio Details
C&I (b)
Period-end loans ($ millions)	$	549		$	567		$	580		$	585		$	592			(3	)%		(7	)%

30+ Delinq. % (a)		—	%		0.18	%		—	%		0.17	%		—	%
NPL %		13.50			14.93			13.99			11.04			9.27
Charge-offs % (qtr. annualized) (c)		6.15			0.37			NM			0.01			0.30

Allowance / loans %		5.29	%		7.66	%		7.95	%		8.26	%		8.56	%
Allowance / charge-offs		0.84	x		20.25	x		NM			NM			28.34	x

Income CRE
Period-end loans ($ millions)	$	49		$	52		$	66		$	120		$	136			(6	)%		(64	)%

30+ Delinq. % (a)		8.84	%		21.51	%		—	%		—	%		2.55	%
NPL %		15.93			18.80			23.20			31.62			32.84
Charge-offs % (qtr. annualized)		1.29			6.29			2.64			5.44			15.60

Allowance / loans %		8.08	%		7.82	%		9.01	%		8.29	%		11.96	%
Allowance / charge-offs		6.04	x		1.08	x		2.30	x		1.42	x		0.69	x

Residential CRE
Period-end loans ($ millions)	$	28		$	38		$	59		$	79		$	95			(26	)%		(71	)%

30+ Delinq. % (a)		1.79	%		0.76	%		1.49	%		0.98	%		—	%
NPL %		29.77			44.39			45.06			53.26			54.60
Charge-offs % (qtr. annualized)		1.70			15.10			9.22			3.81			2.51

Allowance / loans %		9.40	%		8.33	%		7.90	%		7.28	%		8.59	%
Allowance / charge-offs		4.61	x		0.41	x		0.71	x		1.67	x		2.71	x

Consumer Real Estate
Period-end loans ($ millions)	$	2,586		$	2,701		$	2,812		$	2,933		$	3,063			(4	)%		(16	)%

30+ Delinq. % (a)		2.41	%		2.21	%		2.03	%		2.30	%		2.65	%
NPL %		0.90			1.03			0.80			0.82			0.68
Charge-offs % (qtr. annualized)		3.15			3.38			3.86			3.74			4.60

Allowance / loans %		4.19	%		3.95	%		3.91	%		4.08	%		4.18	%
Allowance / charge-offs		1.29	x		1.14	x		0.99	x		1.08	x		0.88	x

Permanent Mortgage
Period-end loans ($ millions) (d)	$	628		$	657		$	818		$	864		$	894			(4	)%		(30	)%

30+ Delinq. % (a)		3.95	%		6.35	%		4.46	%		6.09	%		5.66	%
NPL % (d)		5.17			3.61			16.64			15.04			13.62
Charge-offs % (qtr. annualized) (e)		3.46			23.31			3.88			4.05			3.82

Allowance / loans %		3.17	%		3.94	%		5.24	%		5.99	%		6.62	%
Allowance / charge-offs		0.89	x		0.14	x		1.33	x		1.48	x		1.67	x

Other Consumer
Period-end loans ($ millions)	$	22		$	25		$	30		$	36		$	41			(12	)%		(46	)%

30+ Delinq. % (a)		5.08	%		4.32	%		2.07	%		1.92	%		2.19	%
NPL %		9.83			20.12			31.24			42.03			46.75
Charge-offs % (qtr. annualized)		30.70			19.63			19.98			18.01			15.00

Allowance / loans %		3.98	%		6.98	%		9.27	%		9.53	%		13.13	%
Allowance / charge-offs		0.12	x		0.32	x		0.41	x		0.53	x		0.79	x

Restricted Real Estate Loans
Period-end loans ($ millions) (f)	$	641		$	666		$	694		$	722		$	757			(4	)%		(15	)%

30+ Delinq. % (a)		3.15	%		2.98	%		2.85	%		2.94	%		3.12	%
NPL %		1.04			0.87			0.80			0.75			0.82
Charge-offs % (qtr. annualized)		3.63			4.46			4.76			5.08			5.71

Allowance / loans %		4.97	%		4.86	%		4.76	%		5.52	%		6.26	%
Allowance / charge-offs		1.33	x		1.06	x		0.98	x		1.07	x		1.06	x

NM—Not meaningful

Certain previously reported amounts have been reclassified to agree with current presentation.

(a)	30+ Delinquency % includes all accounts delinquent more than one month and still accruing interest.

(b)	Includes trust preferred loan portfolio and other exited businesses.

(c)	4Q11 includes a $8.9 million charge-off associated with one TRUP loan.

(d)	3Q11 includes the impact of the sale of $126 million in book value of nonperforming permanent mortgages.

(e)	3Q11 includes $40.2 million of net charge-offs (“NCO”) recognized due to sale of nonperforming mortgages.

(f)	4Q11 includes $600.2 million of consumer real estate loans and $40.6 million of permanent mortgage loans.

ASSET QUALITY: PORTFOLIO METRICS

Unaudited

C&I Portfolio: $8.0 Billion (48.9% of Total Loans)


	% OS
General Corporate, Commercial, and Business Banking Loans		76	%
Mortgage Warehouse Line Balances		17	%
Trust Preferred Loans		5	%
Bank Holding Company Lending		2	%

Income CRE Portfolio: $1.3 Billion (7.7% of Total Loans)


Top 10 States as of December 31, 2011	% NPL			% OS
Tennessee		3.90	%		59	%
Georgia		2.26	%		7	%
North Carolina		12.50	%		6	%
Florida		19.57	%		5	%
Mississippi		12.32	%		4	%
South Carolina		—	%		4	%
Texas		3.73	%		3	%
West Virginia		—	%		2	%
Kentucky		—	%		2	%
Virginia		0.81	%		1	%

Consumer Real Estate (primarily Home Equity) Portfolio: $5.9 Billion (35.9% of Total Loans) (a)


Origination LTV and FICO for Portfolio as of December 31, 2011	Loan-to-Value
(excludes whole loan insurance)	<=80%			80% - 90%			>90%
FICO score greater than or equal to 740		33	%		15	%		7	%
FICO score 720-739		7	%		4	%		2	%
FICO score 700-719		6	%		4	%		2	%
FICO score 660-699		7	%		4	%		3	%
FICO score 620-659		2	%		1	%		1	%
FICO score less than 620		1	%		—	%		1	%

Consumer Real Estate Portfolio Detail:


		Origination Characteristics								NCO’s %
Vintage	Balance ($ B)	W/A Age (mo.)	CLTV	FICO			% Broker (b)	% TN	% 1st lien	QTD
pre-2003	$0.2	121	76%		716		16%	45%	33%	0.80%
2003	$0.4	102	75%		729		16%	33%	39%	0.75%
2004	$0.7	89	79%		725		28%	22%	27%	1.15%
2005	$1.0	77	81%		730		19%	18%	16%	3.24%
2006	$0.8	66	78%		734		6%	23%	17%	4.15%
2007	$1.0	54	80%		739		15%	27%	19%	3.24%
2008	$0.5	43	75%		748		8%	73%	51%	0.89%
2009	$0.3	31	72%		753		— %	88%	58%	0.35%
2010	$0.4	17	80%		751		— %	92%	73%	0.01%
2011	$0.6	5	77%		760		— %	90%	86%	— %
Total	$5.9	61	78%		738	(c)	12%	42%	36%	2.05%

(a)	Consumer Real Estate portfolio includes $600.2 million of restricted real estate loans.

(b)	Correspondent and Wholesale.

(c)	738 average portfolio origination FICO; 729 weighted average portfolio FICO (refreshed).

Permanent Mortgage Portfolio: $0.8 Billion (5.1% of Total Loans) (a) (b) (c)


Top 10 States as of December 31, 2011	Del. %			% OS
California		7.66	%		24	%
Texas		10.52	%		8	%
Washington		7.12	%		8	%
Virginia		2.25	%		5	%
Maryland		10.92	%		4	%
Arizona		15.27	%		4	%
Florida		36.80	%		4	%
Oregon		14.76	%		4	%
Utah		10.79	%		3	%
North Carolina		10.84	%		3	%

(a)	Permanent Mortgage portfolio includes $40.6 million of restricted real estate loans.

(b)	Documentation type: 69% full doc; 26% stated; 5% other.

(c)	Product type: 71% jumbo; 13% Alt A; 16% other.

GLOSSARY OF TERMS

LOGO

Adjusted Tangible Equity/RWA: Shareholders’ equity excluding intangible assets and unrealized gains/losses on available for sale securities and cash flow hedges divided by risk weighted assets.

Core Business Segments: Management treats regional banking, capital markets, and corporate as FHN’s core businesses. Non-strategic has significant legacy assets and operations that are being wound down.

Individually Impaired Loans: Commercial loans over $1 million that are not expected to pay all contractually due principal and interest and consumer loans that have experienced a troubled debt restructuring and are individually evaluated for impairment. The estimated loss on these loans is determined using a discounted cash flow (“DCF”) methodology or the estimated fair value of the underlying collateral less costs to sell, if the loan is considered collateral dependent. In accordance with accounting requirements, DCF loans are discounted using the applicable note rate, and typically reserves are maintained for DCF loans. Collateral dependent loans are generally charged off to the estimate of collateral value less cost to sell leaving no associated reserve.

Lower of Cost or Market (“LOCOM”): A method of accounting for certain assets by recording them at the lower of their historical cost or their current market value.

Restricted Balances: Assets of a consolidated variable interest entity that can be used only to settle obligations of the consolidated variable interest entity and liabilities of a consolidated variable interest entity for which creditors (or beneficial interest holders) do not have recourse to the general credit of the primary beneficiary.

Troubled Debt Restructuring (“TDR”): A restructuring of debt whereby a creditor for economic or legal reasons related to the borrower’s financial difficulties grants a concession to the borrower that it would not otherwise consider. Such concession is granted in an attempt to protect as much of the creditor’s investment as possible by increasing the probability of repayment.

Asset Quality—Consolidated Key Ratios

NPL %: Ratio is nonperforming loans in the loan portfolio to total period-end loans.

NPA %: Ratio is nonperforming assets related to the loan portfolio to total period-end loans plus foreclosed real estate and other assets.

Net charge-offs %: Ratio is annualized net charge-offs to total average loans.

Allowance / loans: Ratio is allowance for loan losses to total period-end loans.

Allowance to loans excluding insured loans: Ratio is allowance for loan losses to total period-end loans excluding insured loans.

Allowance / NPL: Ratio is allowance for loan losses to nonperforming loans in the loan portfolio.

Allowance / NPA: Ratio is allowance for loan losses to nonperforming assets related to the loan portfolio.

Allowance / charge-offs: Ratio is allowance for loan losses to annualized net charge-offs.

NON-GAAP TO GAAP RECONCILIATION

Quarterly, Unaudited


(Thousands)	4Q11			3Q11			2Q11			1Q11			4Q10
Tangible Common Equity (Non-GAAP)
(A) Total equity (GAAP)	$	2,684,637		$	2,743,230		$	2,681,382		$	2,640,057		$	2,678,005
Less: Noncontrolling interest ^(a)		295,165			295,165			295,165			295,165			295,165

(B) Total common equity	$	2,389,472		$	2,448,065		$	2,386,217		$	2,344,892		$	2,382,840
Less: Intangible assets (GAAP) ^(b)		159,902			160,902			164,067			183,625			195,061

(C) Tangible common equity (Non-GAAP)	$	2,229,570		$	2,287,163		$	2,222,150		$	2,161,267		$	2,187,779
Less: Unrealized gains on AFS securities, net of tax		67,069			79,358			58,068			39,338			45,366
(D) Adjusted tangible common equity (Non-GAAP) ^(c)	$	2,162,501		$	2,207,805		$	2,164,082		$	2,121,929		$	2,142,413

Tangible Assets (Non-GAAP)
(E) Total assets (GAAP)	$	24,789,384		$	25,571,469		$	25,054,066		$	24,438,344		$	24,698,952
Less: Intangible assets (GAAP) ^(b)		159,902			160,902			164,067			183,625			195,061

(F) Tangible assets (Non-GAAP)	$	24,629,482		$	25,410,567		$	24,889,999		$	24,254,719		$	24,503,891

Period-end Shares Outstanding
(G) Period-end shares outstanding		257,468			263,619			263,699			263,335			263,366

Tier 1 Common (Non-GAAP)
(H) Tier 1 capital ^{(d) (e)}	$	2,854,120		$	2,875,113		$	2,818,535		$	2,790,335		$	2,812,471
Less: Noncontrolling interest—FTBNA preferred stock ^{(a) (f)}		294,816			294,816			294,816			294,816			294,816
Less: Trust preferred ^(g)		200,000			200,000			200,000			200,000			200,000

(I) Tier 1 common (Non-GAAP)	$	2,359,304		$	2,380,297		$	2,323,719		$	2,295,519		$	2,317,655

Risk Weighted Assets
(J) Risk weighted assets ^{(d) (e)}	$	20,160,440		$	19,910,843		$	19,589,310		$	19,569,006		$	20,102,775

Ratios
(C)/(F) Tangible common equity to tangible assets (“TCE/TA”) (Non-GAAP)		9.05	%		9.00	%		8.93	%		8.91	%		8.93	%
(A)/(E) Total equity to total assets (GAAP)		10.83	%		10.73	%		10.70	%		10.80	%		10.84	%
(C)/(G) Tangible book value per common share (Non-GAAP)	$	8.66		$	8.68		$	8.43		$	8.21		$	8.31
(B)/(G) Book value per common share (GAAP)	$	9.28		$	9.29		$	9.05		$	8.90		$	9.05
(I)/(J) Tier 1 common ratio (Non-GAAP) ^(d)		11.70	%		11.95	%		11.86	%		11.73	%		11.53	%
(H)/(E) Tier 1 capital to total assets (GAAP) ^(d)		11.51	%		11.24	%		11.25	%		11.42	%		11.39	%
(D)/(J) Adjusted tangible common equity to risk weighted assets (“TCE/RWA”) (Non-GAAP) ^{(c) (d)}		10.73	%		11.09	%		11.05	%		10.84	%		10.66	%

Net interest income adjusted for impact of fully taxable equivalent (“FTE”) (Non-GAAP)
Regional Banking
Net interest income (GAAP)	$	150,119		$	140,612		$	136,304		$	134,773		$	144,492
FTE adjustment		1,510			1,434			1,353			1,243			924

Net interest income adjusted for impact of FTE (Non-GAAP)	$	151,629		$	142,046		$	137,657		$	136,016		$	145,416

Capital Markets
Net interest income (GAAP)	$	5,526		$	5,552		$	5,509		$	5,503		$	5,877
FTE adjustment		106			81			76			72			71

Net interest income adjusted for impact of FTE (Non-GAAP)	$	5,632		$	5,633		$	5,585		$	5,575		$	5,948

Corporate
Net interest income (GAAP)	$	(3,766	)	$	(493	)	$	404		$	(334	)	$	(2,091	)
FTE adjustment		34			40			68			71			53

Net interest income adjusted for impact of FTE (Non-GAAP)	$	(3,732	)	$	(453	)	$	472		$	(263	)	$	(2,038	)

Non-Strategic
Net interest income (GAAP)	$	26,998		$	30,669		$	30,643		$	32,813		$	33,958
FTE adjustment		—			—			—			—			—

Net interest income adjusted for impact of FTE (Non-GAAP)	$	26,998		$	30,669		$	30,643		$	32,813		$	33,958

Total Consolidated
Net interest income (GAAP)	$	178,877		$	176,340		$	172,860		$	172,755		$	182,236
FTE adjustment		1,650			1,555			1,497			1,386			1,048

Net interest income adjusted for impact of FTE (Non-GAAP)	$	180,527		$	177,895		$	174,357		$	174,141		$	183,284

Certain previously reported amounts have been reclassified to agree with current presentation.

(a)	Included in total equity on the consolidated balance sheet.

(b)	Includes goodwill and other intangible assets, net of amortization.

(c)	See Glossary of Terms for definition of ratio.

(d)	Current quarter is an estimate.

(e)	Defined by and calculated in conformity with bank regulations.

(f)	Represents FTBNA preferred stock included in noncontrolling interest.

(g)	Included in term borrowings on the consolidated balance sheet.

First Horizon National Corporation

Fourth Quarter 2011 Earnings

January 20, 2012

Exhibit 99.1PPT

Portions of this presentation use non-GAAP financial information. Each of those portions is so noted, and a

reconciliation

that

non-GAAP

information

comparable

GAAP

information

provided

footnote

the

appendix at the end of this presentation.

This presentation contains forward-looking statements, which may include guidance, involving significant risks and

uncertainties which will be identified by words such as “believe”,“expect”,“anticipate”,“intend”,“estimate”,

“should”,“is likely”,“will”,“going forward”

and other expressions that indicate future events and trends and may be

followed by or reference cautionary statements.

A number of factors could cause actual results to differ materially

from those in the forward-looking information.

These factors are outlined in our recent earnings and other press

releases

and

detail

the

most

current

10-Q

and

10-K.

FHN

disclaims

any

obligation

update

any

such

factors or to publicly announce the result of any revisions to any of the forward-looking statements included herein

or therein to reflect future events or developments.

Successful Execution:

2011 Accomplishments

Optimize

Business Mix for

Profitability &

Returns

Improve

Productivity

& Efficiency

All

data

full

year

2011

compared

full

year

2010

unless

otherwise

noted.

Core

Businesses

include

Regional

Banking,

Capital

Markets,

and

Corporate

segments.

Tier

and

Tier

Common:

consolidated

ratios

and

current

quarter

estimate;

Tier

Common

and

TCE,

are

consolidated

ratios

and

non-GAAP

numbers,

and

reconciliation

provided

the

appendix.

Source:Fed

H.8

data.

Executing $139mm of cost saves in Core Businesses

Regional bank expenses down 7%

Regional Bank revenue per FTE of $255k, up 7% from $239k in 2010

Mortgage repurchase provision expense down $30mm to $160mm vs 190mm in 2010,

including a linked quarter decline of $8mm or 15%

Mortgage repurchase pipeline at $384mm vs $534mm in 4Q10

Tier 1 ratio at 14.2%, up 17bps

Tier 1 Common at 11.7%, up 17bps

TCE/TA at 9.1%, up 12bps

Repurchased $44mm of common stock in 4Q11

Volume weighted average price of $7.10 per share

Core

Businesses’

pre-tax

income

$342mm

2011,

$75mm

from

2010

Regional

Banking

period

end

loans

6%,

compared

industry

Regional bank average loan yields at 4.02%

Regional Banking average deposits up 5%

Average rate paid on deposits at 50bps

Capital Markets’

fixed income average daily revenues remain strong due to our unique

business model and extensive distribution network

Non-Strategic average loans decreased 20% from 2010

NPL decline of 38%

Deploy Capital

In Disciplined

Manner

Solid Pre-Tax Income in Core Business Segments

FHN Pre-Tax Income By Business Segment

Numbers/percentages may not add due to rounding.

All data is full year 2011 compared to full year 2010 unless otherwise noted.

Capital Markets pre-tax income included $36.7mm of litigation expense in 2Q11.

Core Businesses include Regional Banking, Capital Markets, and Corporate segments.

$350mm

Core Businesses’

2011 pre-tax income grew 28% from 2010

Regional Banking showed continued improvement in profitability

Provision credit of $62mm in 2011 vs provision expense of $92mm in 2010

Pre-tax pre-provision up 11% to $263mm from $237mm in 2010

Capital markets pre-tax income declined $71mm due to normalizing market conditions and a $37mm litigation

expense in 2Q11

Non-Strategic provided less of a drag in 2011

Loan loss provision declined 41% to $106mm

Sale of ~$150mm of primarily nonperforming loans in 3Q11

Mortgage repurchase provision decreased 16% to $160mm

Mortgage repurchase pipeline down 28% from 12/31/10

Non-Strategic

Regional Banking

$145

$325

Capital Markets¹

$128

$57

Corporate

($5)

($39)

Core Businesses²

$267

$342

Non-Strategic

($216)

($192)

Consolidated FHN

$52

$150

Pre-Tax Income

($ in millions)

2010

2011

FINANCIAL RESULTS

Consolidated Financial Results

Net income available to common shareholders of

$35mm, diluted EPS of $0.13, in 4Q11

Core Businesses

pre-tax income of $95mm

Total revenues, excluding securities gains, stable

at $360mm

Regional Banking revenues up 3%

Regional Bank NII up 7% primarily due to

higher loan volume

Capital Markets revenues down 11%

Total expenses at $312mm, down 3%

Regional Banking expenses down 1%

Capital Markets expenses declined 14%

Non-Strategic expenses down 11%

$45mm of mortgage repurchase

expense vs $53mm

Charges for restructuring, repositioning & efficiency

initiatives of $4mm vs $2mm

Total provision at $10mm

Net charge-offs at $75mm

Net charge-offs down 29% linked quarter and 25%

from 4Q10

All data is 4Q11 compared to 3Q11 unless otherwise noted.

Numbers may not add to total due to rounding.

Core

businesses

include

Regional

Banking,

Capital

Markets,

and

Corporate

segments.

Core

Businesses’

pre-tax

income

non-GAAP

number

and

reconciled

slide 4.

Fourth Quarter 2011 Segment Highlights

Numbers may not add to total due to rounding.

Pre-tax earnings, Revenue, and Expense are in millions.

Revenue includes securities gain / losses.

4Q11 Drivers / Impacts

4Q11 Revenue

4Q11 Expense

Pre-Tax Earnings ($mm)

4Q11

Linked Quarter

Change

$mm / Percent

4Q10

3Q11

Regional

Banking

Capital

Markets

Corporate

Non-Strategic

$215

$136

$94

$67

$29

$46

$80

Core Business

(subtotal)

Total

$315

$232

$360

$312

$6 / 3%

$(11) / (11)%

$(31) / (83)%

$(0) / (1)%

$(37) / (10)%

$(37) / (9)%

$(1) / (1)%

$(10) / (14)%

$10 / 54%

$(1) / (0)%

$(10) / (11)%

$(11) / (3)%

$91

$27

$(23)

$95

$(57)

$38

$94

$28

$19

$140

$(98)

$43

$63

$24

$92

$(78)

$14

Loan loss provision of $23mm in 4Q11 vs

$55mm in 3Q11. Repurchase provision of

$45mm in 4Q11 vs $53mm in 3Q11

Fixed income average daily revenue of

$1.3mm in 4Q11 vs $1.4mm in 3Q11

Mortgage warehouse valuation adjustments

of $0.3mm in 4Q11 vs $(7.1)mm in 3Q11

Provision credit in 4Q11 of $13mm vs

provision credit of $23mm in 3Q11

4Q11 included $4mm from interest related to

a tax refund. 3Q11 included $35mm of

securities gain from sale of Visa stock

Lower expenses from lower variable

compensation and decline in legal expense

NII up 7% primarily due to loan volume. Fee

income down 5% linked quarter from Durbin

impact

Increase to derivative liabilities in 4Q11 of

$8.3mm. 4Q11 included restructuring costs

of $4.0mm vs $2.0mm in 3Q11

Successful Execution: Balance Sheet and NIM

Regional Bank Average Commercial Loan Spread

4Q11 period end total assets at $25B

4Q11 total period end loans at $16B, up 1% vs 3Q11

Period end Regional Banking loans increased $379mm

or 3% from 3Q11

Period end Non-Strategic loans decreased $203mm or

4% from 3Q11

2011 total average loans at $16.1B, down 6% vs 2010

Average Regional Banking loans flat to 2010, compared

to industry decline of 5%

Regional bank loan yields at 4.01% in 4Q11 vs

4.07% at 4Q10

Average Non-Strategic loans decreased 20% from 2010

Average core deposits rose 1% linked quarter and 2% from

2010 to 2011

Average core deposit rate of 51bps in 4Q11 vs 70 bps in 4Q10

Adverse Impact from Commercial Non-Accruals

Net Interest Margin by Segment

Numbers/percentages

may

not

add

due

rounding.

Core

Businesses

NIM

non-GAAP

number

relating

the

three

core

business

segments:

Regional

Banking,

Capital

Markets,

and

Corporate.

Net

interestmargin

computed

using

total

net

interest

income

adjusted

for

FTE.

Refer

the

non-GAAP

GAAP

reconciliations

the

appendix.

Source:Fed

H.8

data.

Source:

S&P

Bilateral

Market

Trends

for

newly

originated

credits.

Fourth

quarter

data

not

available

this

time.

Analysis

reflects

LIBOR-based

facilities

over

$1mm,

and

excludes

Commercial

Real

Estate

credits.

Figures

are

weighted

outstandings

and

not

include

the

incremental

revenue

earned

from

rate

floors.

2011

Standard

Poors,

Division

the

McGraw-Hill

Companies.

10bps

NIM

3Q11

4Q11

FY2011

FY2010

Regional Banking

5.17%

5.23%

5.21%

5.09%

Capital Markets

1.17%

1.16%

1.20%

1.30%

Corporate

-0.01%

-0.36%

-0.11%

0.05%

Core Businesses

3.52%

3.54%

3.60%

Non-Strategic

2.30%

2.17%

2.24%

2.23%

First Horizon

3.23%

3.22%

3.20%

Successful Execution:

Driving More Value from the Balance Sheet

4Q11 Regional Bank Loan Balances

Regional Bank Commercial Loan Yields

Regional Bank Commercial Loan Commitments

Regional Bank Commercial Loans Funded

$3.5B

$1.8B

C&I

CRE

21%

$139mm identified in cost savings, in addition to expected reduction in Non-Strategic expenses over the long-term

$112mm annualized impact in 4Q11 run rate

Additional

$27mm

actions

execution,

targeted

largely

completed

the

end

2012

Near-term offsets from technology investments and elevated environmental costs

Targeting ~$1B level of consolidated expenses by the end of 2013, a 25-30% reduction from the 2010 level

Improving Productivity and Efficiency

Environmental Costs Remain Elevated

$139mm Identified in Cost Savings: 2011 -

2012

Non-Strategic Expenses

Regional Bank Expenses

$350mm

$620mm

13%

Mortgage Repurchase-Related

Expenses Remain Manageable

Mortgage Repurchase Reserve

Pipeline of requests declined to $384mm in 4Q11, down

8% linked quarter and 28% from 4Q10

Total new requests down $86mm and new GSE

repurchase requests down $5mm from 4Q10

Total new requests down $23mm and new GSE

repurchase requests up $7mm linked quarter

Resolutions up 2% linked quarter

4Q11 cumulative rescission rates continue to average

in the 45-55% range; average loss severity remains in

the 50-60% range

Currently, there are no repurchase requests from

private first lien mortgage securitizations

Sold origination and servicing platform in August 2008

New GSE Repurchase Requests

by Vintage

Total Pipeline by Vintage

Total Pipeline of

Repurchase Requests

4Q11.

Numbersmay

not

add

due

rounding.

Requests

reflect

pipeline

each

respective

quarter

end.

12/31/11.

Based

UPB.

The

pipeline

represents

active

investor

claims

and

mortgage

insurance

(MI)

cancellations

under

review,

both

which

could

occur

the

same

loan.

Excludes

cancellation

notices

that

have

been

reviewed

and

coverage

has

been

lost.

For

purposes

estimating

loss,

cancellation

notices

where

coverage

has

been

lost

are

contemplated.

$150mm

$600mm

($ in mm)

4Q10

1Q11

2Q11

3Q11

4Q11

Beginning Balance

175

183

169

Net Realized Losses

(36)

(37)

(39)

(53)

(49)

Provision

Ending Balance

183

169

165

Successful Execution:

Asset Quality Trends Continue to Improve

4Q11 net charge-offs of $75mm

Includes a $21mm loss from one bank-related relationship of a TRUP and bank holding company loan (fully

reserved)

NCOs down 29% linked quarter and 25% since 4Q10

3Q11 included $48mm of NCOs associated with nonperforming loan sales

Regional Bank NCOs down $3mm or 8% from 4Q10

Non-Strategic NCOs down $22mm or 34% since 4Q10

Reserves for loan losses decreased $65mm linked quarter to $384mm or 2.34% of period end loans

Reserves and Net Charge-Offs

Data as of 12/31/11, unless otherwise noted. Numbers may not add

due to rounding.

$125mm

$48

Loan Sales NCOs

($ mm)

2Q11

3Q11

4Q11

Beginning ORE

$94

$79

$80

Valuation Adjustments

($5)

($4)

Adjusted Balance

$90

$75

$76

+ New ORE

$17

$14

+ Capitalized Expenses

- Dispositions:

($29)

($12)

($21)

Single Transactions

($25)

($10)

($21)

Auctions

Bulk Sales

(4)

(2)

(0)

Ending ORE

$79

$80

$69

($ mm)

2Q11

3Q11

4Q11

Beginning NPLs

$462

$404

$341

+ Additions

$31

$36

$17

+ Principal Increase

- Resolutions/Payments

($66)

($54)

($39)

- Net Charge-Offs

($15)

($22)

($37)

- Transfer to ORE

($5)

($10)

($3)

- Upgrade to Accrual

($5)

($15)

($1)

Ending NPLs

$404

$341

$279

Successful Execution:

Non-Performing Assets Decline

Non-Performing Assets

NPAs down $61mm or 11% linked quarter, and down

38% or $315mm year over year

NPA % at 2.57% vs 4.48% in 4Q10

NPL levels down 10% from 3Q11, down 38%

since 4Q10

Decreased due to lower inflows

NPL % at 2.16% vs 3.85% in 4Q10

ORE balances declined from continued disposition

activity

NPL Activity from Commercial and OTC

ORE Activity

Numbers may not add due to rounding.

Does not include Consumer loan sales in 3Q11. 4Q11 net charge-offs include a $21mm loss from one bank-related relationship of a TRUP and bank holding company loan.

ORE excludes foreclosed real estate from government insured loans.

(1)%

(14)%

(9)%

(2)%

(11)%

(1)%

(14)%

$1.4B

(9)%

(22)%

Building Long-Term Earnings Power:

FHNC Bonefish –

Long-Term Targets

Core Businesses include Regional Banking, Capital Markets, and Corporate segment. Certain core data are non-GAAP and a reconciliation is provided in the appendix.

2011Y Consolidated

2011Y Core¹

Long-Term Targets

ROTCE

5.88%

15 -

20%

ROA

0.58%

1.34%

1.25 -

1.45%

NIM

3.22%

3.54%

3.50 -

4.00%

Tier 1 Common

11.7%

8.0 –

9.0%

NCO / Average Loans

2.02%

0.91%

0.30 -

0.70%

Fee Income as % of Revenue

50%

52%

40 -

50%

Efficiency Ratio

89%

80%

60 -

65%

Equity / Assets

Return on Assets

1.25% - 1.45%

Risk Adjusted Margin

Return on Tangible

Common Equity

15% - 20%

Total Assets

Earning Assets

Pre-tax Income

Tax Rate

Efficiency Ratio

60% - 65%

Annualized Net Charge-Offs

0.30% - 0.70%

Net Interest Margin

3.50% - 4.00%

Tier 1 Common

8% - 9%

% Fee Income

40% - 50%

Successful Execution: FHN Strategic Priorities

Building a Foundation for Long-Term Earnings Power

Improve Profitability and Returns

Replace runoff, low margin, Non-Strategic assets with higher margin, Regional Banking assets

Continue efficiency and productivity efforts

Focus on Differentiated Customer Service

Emphasis on convenience, relationships, and technology

Simplify and streamline processes

Deploy Capital Smartly

Maintain appropriate levels for future banking environment

Continue to deploy capital with a disciplined approach

APPENDIX

Liquidity, Capital, and Reserves

Tier 1 Common Ratio

Wholesale Funding

Capital Ratios

Numbers

may

not

add

total

due

rounding

Source:

SNL.

Peer

median

includes

top

publicly

traded

U.S.

banks

total

assetsize

3Q11.

TCE/RWA

not

adjusted

for

unrealized

gains

AFS

securities,

Tier

Common,

and

TCE/TA

are

non-GAAP

numbers,

and

reconciliation

provided

the

end

the

appendix.

Excluding

Securities

Sold

Repos,

Trading

Liabilities,

and

sub-debt

and

other

collateralized

borrowings

$2.7B.

Reserves vs. Peers

Period End ($B)

2Q11

3Q11

4Q11

Fed Funds Purchased

$1.3

$1.6

$1.5

Senior Debt

$0.5

Insured Network Deposits

$1.7

$1.8

$1.7

Borrowing From FHLB

$0.0

$0.4

$0.0

Other

$0.2

$0.1

Total

$3.7

$4.5

$3.9

2Q11

3Q11

4Q11

3Q11 Peer

Median

Total Capital

18.2%

17.9%

15.6%

Tier 1 Capital

14.4%

14.2%

13.0%

TCE/TA

8.9%

9.0%

9.1%

7.9%

TCE/RWA

11.3%

11.5%

11.1%

4Q11 Credit Quality Summary by Portfolio

As of 12/31/11; numbers may not add to total due to rounding.

Period End

Commercial

(C&I & Other)

Income

CRE

Residential

CRE

HE &

HELOC

Other1

Permanent

Mortgage

Commercial

(C&I & Other)

Income

CRE

Residential

CRE

HE &

HELOC

Permanent

Mortgage

Other

Total

End Loans

$7,465

$1,208

$93

$2,706

$281

$141

$549

$49

$28

$2,586

$628

$663

$16,397

30+ Delinquency

0.16%

0.43%

0.40%

1.02%

1.13%

0.67%

0.00%

8.84%

1.79%

2.41%

3.95%

3.21%

0.99%

Dollars

$12

$28

$62

$25

$21

$163

NPL %

1.18%

5.08%

40.28%

0.45%

0.02%

0.15%

13.50%

15.93%

29.77%

0.90%

5.17%

1.33%

2.16%

Dollars

$88

$61

$38

$12

$74

$23

$32

$354

Net Charge-offs

1.26%

0.40%

7.38%

0.55%

3.08%

6.15%

1.29%

1.70%

3.15%

3.46%

4.59%

1.84%

Dollars

$23

$21

$75

Allowance

$101

$36

$13

$31

$29

$108

$20

$33

$384

Allowance / Loans %

1.36%

2.95%

14.33%

1.15%

2.27%

5.29%

8.08%

9.40%

4.19%

3.17%

4.93%

2.34%

Allowance / Charge-offs

1.11x

7.03x

1.80x

2.12x

0.72x

0.84x

6.04x

4.61x

1.29x

0.89x

1.04x

1.28x

(1) Credit Card, Permanent Mortgage, and Other

(2) Restricted Consumer Real Estate Loans, OTC, and Other Consumer

(3) Net Charge-Offs are quarterly annualized

(NM) Not meaningful

(4) Exercised clean-up calls on jumbo securitizations in 2Q11 and 4Q10, which are now on balance sheet in the Corporate segment

($ in millions)

Regional Bank

Non-Strategic

Corporate

Income CRE Portfolio

Performance

Balances of $1.3B at 12/31/11

96% managed in Regional Banking with relationship-

oriented customers

Proactively managing problem projects and maturities

to regulatory standards

Do not capitalize interest and do not fund interest on

distressed properties

Net charge-offs down $3mm or 69% linked quarter to

$1mm

Reserves of 3.2% at 12/31/11

Continued improvement and stabilization

Loan Type

NPLs By Product Type

Collateral Type

Numbers may not add to total due to rounding. Data as of 4Q11.

As of 12/31/11; NPLs as a percentage of each portfolio.

“Other”

includes Non-Owner Occupied Single Family Residential and Multi-Use Projects.

Land

Other

Office

Multi-Family

Retail

Industrial

Hospitality

33.8%

12.7%

4.6%

1.4%

1.2%

0.0%

C&I Portfolio

Consolidated C&I Portfolio

C&I Loan Composition

3Q11 NCOs included $48mm of NCOs associated with

nonperforming loan sales. 4Q11 charge-offs included

$21mm charge-off from one bank-related relationship

C&I Portfolio: Loans to Mortgage Companies

Numbers may not add to total due to rounding. Data as of 4Q11.

$1.6B

$8.0B portfolio, diversified by industry, managed in

Regional Bank

Includes loans to mortgage companies

(correspondent banking) of $1.4B in 4Q11 vs

$1.1B in 3Q11

Net charge-offs up $19mm linked quarter

Includes a $21mm loss from one bank-related

relationship:

TRUP charge-off of $8.9mm in Non-Strategic

Bank holding company charge-off of $11.7mm

in Regional Banking

C&I consolidated reserves of 1.63% at 12/31/11

C&I Portfolio: TRUPS & Bank-Related Loans

4Q11

TRUPs & Bank-

Related Loans

C&I w/o TRUPs &

Bank-Related Loans

Total C&I Portfolio

PE Balances ($mm)

$609

$7,406

$8,015

Reserves ($mm)

$66

$99

$130

Reserve Coverage

10.85%

1.33%

1.63%

NPL %

14.85%

0.97%

2.02%

NCO %

15.24%

0.41%

1.62%

TRUPS and Bank-Related Loan Coverage

$609mm balances in TRUPS and bank-related loans

$291mm whole-loan TRUPs to banks

$156mm whole-loan TRUPs to insurance companies

$162mm

loans

bank

holding

companies

and

loans

secured

bank

stock

Significant focus is directed at this portfolio

TRUPs and bank holding company loans are re-graded quarterly

Average TRUP size of $9mm

Eight TRUPs are investment grade

Ten TRUPs on deferral at 12/31/11

Data as of 4Q11.

Reserve coverage includes $34.2mm of LOCOM on TRUPs.

NCO% is QTD Annualized. Numbers may not add to total due to rounding.

Home Equity: Performance and Characteristics

Portfolio Characteristics

Geographic Distribution

30+ Delinquency: Key Drivers

Data as of 4Q11. Numbers/Percentages may not add due to rounding.

All charts and graphs include $600.2mm of restricted consumer real estate loans.

FICO Score-Origination

Lien Position

Channel

53%

% of portfolio

13%

12%

14%

88%

12%

% of portfolio

36%

64%

% of portfolio

First

Second

Total

Balance

$2.1B

$3.8B

$5.9B

Original FICO

742

736

738

Refreshed FICO

740

724

729

Original CLTV

73%

81%

78%

Full Doc

83%

71%

76%

Owner Occupied

88%

96%

93%

HELOCs

$0.8B

$2.9B

$3.7B

Weighted Average

HELOC Utilization

52%

62%

60%

Consumer Real Estate Portfolio

30+ Delinquency: Non-Strategic vs. Regional

Net Charge-Offs

Non-Strategic Portfolio Run-Off

Source: McDash industry data as of October 2011.

Channeling changed beginning March 2010 to be consistent with Accounting Segments.

All charts and graphs include $600.2mm of restricted real estate loans.

Industry

= 6.40%

$4B

$60mm

$44

$40

$35

$31

$54

Mortgage Repurchases:

Origination and Loan Characteristics

GSE

GSE Originations

~$70B of originations from 2005 to 2008

Received ~$1.3B¹

of GSE-related repurchase requests

to date, or 1.8% of originations

Represent 99% of all active repurchase/make whole

requests in pipeline at 12/31/11

Pipeline of requests declined to $384mm in 4Q11,

down 8% from 4Q10

$261mm of GSE-related claims

$75mm of mortgage insurer-related cancellations

$ 3mm of private whole loan-related claims

$44mm of other non-repurchase requests

Jumbo and Alt-A

Whole Loan Sales/Non-GSE

Represent 1% of all active repurchase/make whole

requests in 4Q11 pipeline

~$47B of originations from 2000 to 2007

9 securitizations of jumbo loans called in 2Q11 and

4Q10

Outstanding UPB of the 2004 –

2007 securitizations

of ~$12B

63% Alt-A

37% Jumbo Loans

Private Mortgage Securitizations³

Private Mortgage Securitizations:

Private Securitization Risk Remains Manageable

2004-2007 Private Mortgage Securitizations

Private Loan Repurchase Risk

Different than GSE Risk

~$33B of originations from 2004 to 2007

102 active mortgage securitizations with a current UPB

of ~$12B

46 Jumbo and 56 Alt-A first lien securitizations

FHN originated 60% Alt-A, 40% Jumbo, and no

Subprime private securitizations

At origination, FHN’s average securitization size was

$325mm

Industry average securitization size of $858mm

Private Mortgage Securitization Facts

No private first lien mortgage securitization loan

repurchase requests

Four private securitization-related lawsuits outstanding

67% of current UPB dollar-weighted 2004-2007 private

securitizations are outperforming industry cohort on

cumulative loss

79% of current UPB dollar-weighted 2004-2007 private

securitizations are outperforming industry cohort on

60D+ delinquencies

Data source: LoanPerformance, CPRCDR, Intex, PolyPaths, Bloomberg with company analysis. FHN has not verified data accuracy. Excludes inactive deals. Data as of Nov 2011 with Dec remits.

Two lawsuits are from 2H10 and the other two, including a suit by FHFA, are from 3Q11. A fifth suit, filed in 2010, has been withdrawn as to FHN.

Resolution

Representations

Access

Voting Rights

Generally, reps and warranties

are not as comprehensive as

GSE whole-loan reps and

warranties

No specific representation and

warranty on third-party fraud

in the origination

Difficult for most non-

governmental investors to

access loan files

Significant upfront cost with

unknown returns; must

indemnify trustee

Generally requires a

coordinated investor effort to

compel trustees to investigate

and pursue repurchase claims

Investor interests are not

necessarily aligned

Longer resolution

process expected

Longer timeline may decrease

probability of successful claims

Private Mortgage Securitizations:

Delinquencies and Cumulative Losses

Jumbo 60+ Day Delinquencies

Alt-A 60+ Day Delinquencies

Jumbo Cumulative Losses

Alt-A Cumulative Losses

Data as of November 2011. December Remits.

Data source: LoanPerformance, CPRCDR, Intex, PolyPaths, Bloomberg with company analysis. FHN has not verified the data accuracy.

Cohort (Industry) = Loans of similar type/vintage relevant reference group

Numbers may not add to total due to rounding. Supplemental private securitization data provided on FHN’s website at ir.fhnc.com.

12%

11%

Vintage Remaining Balance / Total 2004-2007 Current Jumbo and Alt-A Balance

29%

19%

11%

12%

Vintage Original Balance / Total 2004-2007 Original Jumbo and Alt-A Balance

27%

18%

FHN

Industry

FHFA Litigation Certificate Breakdown

FHFA Litigation Securitizations

$1.0B

$874mm*

*The original balance related to the FHFA lawsuit is $874mm, plus an additional $9mm of cost over par, totaling $883mm

($ in Millions)

Alt-A Deal

FHFA-Related

Tranche

Original

UPB

Paid

Off

Current

UPB

Performing

UPB

60D+

Delinq

Cumulative

Loss

FHAMS 2005-AA9

IIA1

$214

$117

$90

$74

$16

FHAMS 2005-AA10

IA1

$140

$80

$57

$47

$10

FHAMS 2005-AA11

IA1

$129

$66

$54

$45

FHAMS 2005-AA12

IIA1

$161

$68

$83

$67

$16

FHAMS 2006-AA1

IA1

$230

$133

$87

$66

$20

$11

FHFA Total

$874

$464

$371

$299

$71

$39

Reconciliation to GAAP Financials

Slides in this presentation use non-GAAP information of net interest income adjusted for impact of FTE. That

information is not presented according to generally accepted accounting principles (GAAP), and is reconciled to GAAP

information below.

($ in 000s)

4Q11

3Q11

2Q11

Regional Banking

Net interest income (GAAP)

$150,119

$140,612

$136,304

FTE adjustment

1,510

1,434

1,353

Net interest income adjusted for impact of FTE (Non-GAAP)

$151,629

$142,046

$137,657

Capital Markets

Net interest income (GAAP)

$5,526

$5,552

$5,509

FTE adjustment

106

Net interest income adjusted for impact of FTE (Non-GAAP)

$5,632

$5,633

$5,585

Corporate

Net interest income (GAAP)

($3,766)

($493)

$404

FTE adjustment

Net interest income adjusted for impact of FTE (Non-GAAP)

($3,732)

($453)

$472

Non-Strategic

Net interest income (GAAP)

$26,998

$30,669

$30,643

FTE adjustment

Net interest income adjusted for impact of FTE (Non-GAAP)

$26,998

$30,669

$30,643

Total Consolidated

Net interest income (GAAP)

$178,877

$176,340

$172,860

FTE adjustment

1,650

1,555

1,497

Net interest income adjusted for impact of FTE (Non-GAAP)

$180,527

$177,895

$174,357

Reconciliation to GAAP Financials

Slides in this presentation use non-GAAP information of tangible assets, tangible common equity, tier 1 common

capital,

and

various

ratios

using

one

those

measures.

That

information

not

presented

according

generally accepted accounting principles (GAAP), and is reconciled to GAAP information below.

Includes goodwill and other intangible assets, net of amortization.

Current quarter is an estimate.

Numbers may not add to total due to rounding.

Reconciliation to GAAP Financials

Slides in this presentation use non-GAAP information of net interest income, assets, net interest margin, net charge-

offs,

fee

income,

revenue,

expense

and

various

ratios

using

one

those

measures.

That

information

not

presented according to generally accepted accounting principles (GAAP), and is reconciled to GAAP information below.

Numbers may not add to total due to rounding.

Regional Banking

2011

2010

Total Revenue ($000)

$828,035

$843,181

FTEs

3,252

3,535

Revenue Per FTE ($000)

$255

$239

2011

Return

on Assets

Net Interest

Margin

Net Charge-Offs/

Average Loans

Fee Income /

Total Revenue

Efficiency

Ratio

Regional Bank (GAAP)

1.80%

5.21%

0.93%

32%

68%

Capital Markets (GAAP)

1.57%

1.20%

0.00%

94%

85%

Corporate (GAAP)

0.23%

-0.11%

0.00%

55%

355%

Core (Non-GAAP)

1.34%

3.54%

0.91%

52%

80%

Non-Strategic (GAAP)

-1.85%

2.24%

4.43%

43%

140%

Consolidated (GAAP)

0.58%

3.22%

2.02%

50%

89%

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