FIRST HORIZON CORP - FORM 8-K - EX-99.1 - FIRST HORIZON NATIONAL CORPORATION FINANCIAL SUPPLEMENT

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Exhibit 99.1

LOGO

THIRD QUARTER 2012

FINANCIAL SUPPLEMENT

If you need further information, please contact:

Aarti Bowman, Investor Relations

901-523-4017

aagoorha@firsthorizon.com

FHN TABLE OF CONTENTS


	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
Net Interest Income		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
Asset Quality: Regional Banking and Corporate		23
Asset Quality: Non-Strategic		24
Rollforwards of Nonperforming Loans and ORE Inventory and Commercial Loans - Portfolio Metrics		25
Consumer Loans - Portfolio Metrics		26

Non-GAAP to GAAP Reconciliation		27

Glossary of Terms		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 demonstrated by their use by the various banking regulators in reviewing the capital adequacy of financial institutions. 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 regulatory capital ratios. Refer to the tabular reconciliation of non-GAAP to GAAP measures and presentation of the most comparable GAAP items on page 27 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

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, tax credit investment 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

FHN PERFORMANCE HIGHLIGHTS

Summary of Third Quarter 2012 Significant Items


Segment	Item	Income Statement	Amount	Comments

Primarily Non Strategic	Loan Loss Provision	Provision for loan losses	$(~30) million	Incremental loan loss provisioning associated with charging down secured loans discharged in bankruptcy to estimate of collateral value less disposition costs

Non Strategic	Legal Settlement	Noninterest Expense: Other	$(6.6) million	Pre-tax loss related to a legal settlement

Corporate & Non Strategic	Restructuring, Repositioning, and Efficiency Initiatives	Primarily Employee compensation, incentives, and benefits	$(2.6) million	Primarily pre-tax severance related costs associated with efficiency initiatives within corporate and bank service functions

(Third Quarter 2012 vs. Second Quarter 2012)

Consolidated

•

Net income available to common shareholders was $25.8 million, or $.10 per diluted share, compared to net loss of $124.8 million, or $.50 loss per diluted share in prior quarter

•

Net interest income (“NII”) increased slightly in third quarter to $173.5 million; net interest margin (“NIM”) decreased to 3.15 percent from 3.16 percent

•

The increase in NII is primarily attributable to an increase in loan balances within the regional bank, partially offset by a decline in loan fees and impact of lower securities and loan reinvestment rates

•

The slight decline in NIM is driven by a decrease in loan fees and lower reinvestment rates which were partially offset by a decline in excess cash held at the Fed

•

Noninterest income (including securities gains) was $163.5 million in third quarter, an increase of $4.6 million from second quarter

•

Increase primarily driven by higher fixed income sales revenue within capital markets in third quarter

•

Provision expense was $40.0 million in third quarter compared to $15.0 million in second quarter

•

Third quarter includes approximately $30 million related to incremental loan loss provisioning associated with implementation of recently issued regulatory guidance (See detailed discussion under Asset Quality)

•

Noninterest expense was $263.2 million in third quarter compared to $527.2 million in second quarter

•

Decrease primarily driven by repurchase and foreclosure provision recognized in second quarter

•

Period-end loans were $16.5 billion for the third quarter compared to $16.2 billion in second quarter; average loan balances were $16.4 billion for third quarter compared to $16.0 billion in second quarter

•

Increase in the loan portfolio is primarily driven by an increase in loans to mortgage companies, partially offset by continued run-off within the non-strategic portfolios

•

Average core deposits decreased to $15.3 billion in third quarter from $15.6 billion in second quarter, period-end increased 1 percent to $15.7 billion

Regional Banking

•

Net interest income increased $2.5 million to $150.4 million in third quarter; NIM decreased to 4.92 percent from 5.13 percent

•

Increase in NII primarily attributable to higher loan balances (loans to mortgage companies and real estate installment loans) partially offset by lower loan fees in third quarter

•

Decline in NIM is driven by lower reinvestment rates and loan fees in third quarter

•

Provision was $4.3 million in third quarter compared to $4.8 million in prior quarter

•

Decrease in commercial reserves largely driven by improvement in CRE portfolios; consumer reserves relatively flat from prior quarter

•

Period-end loans increased $500.2 million to $12.5 billion primarily due to an increase in loans to mortgage companies

•

Noninterest income decreased slightly to $64.0 million in third quarter from $64.8 million in prior quarter

•

Noninterest expense decreased to $141.2 million in third quarter from $142.7 million in second quarter

•

Decrease partially offset by an increase in fair value adjustments on foreclosed property

Capital Markets

•

Fixed income sales revenue increased to $74.2 million in third quarter from $68.2 million in second quarter

•

Fixed income average daily revenue (“ADR”) was $1.2 million in third quarter compared to $1.1 million in second quarter

•

Noninterest expenses increased to $64.6 million in third quarter from $60.9 million in prior quarter

•

Variable compensation costs increased consistent with the increase in fixed income ADR

Corporate

•

NII was negative $5.3 million in third quarter compared to negative $4.7 million in second quarter

•

Noninterest income was $7.9 million in third quarter compared to $3.8 million in prior quarter

•

Increase primarily resulting from higher deferred compensation driven by market conditions; changes in income are mirrored by changes in deferred compensation expense

•

Third quarter includes $.9 million of interest related to a tax refund

•

Noninterest expense increased to $22.0 million in third quarter from $19.8 million in prior quarter

•

Third quarter increase was largely driven by an increase in deferred compensation expense and a $1.5 million impairment charge related to tax credit investments

•

These increases were partially offset by a $1.8 million gain related to clean-up calls for first lien securitizations and a $1.8 million franchise tax adjustment

Non-Strategic

•

NII was relatively flat at $23.6 million in third quarter

•

Provision expense increased to $35.7 million in third quarter from $10.2 million in prior quarter

•

Increase associated with implementation of recently issued regulatory guidance; largely attributable to second liens in the consumer real estate portfolio (home equity lines and loans)

•

Noninterest income (including securities gains) decreased to $10.8 million in third quarter from $15.3 million in prior quarter

•

Mortgage banking income was relatively flat at $8.9 million

•

Second quarter includes a $5.1 million gain on sale of a venture capital investment

FHN PERFORMANCE HIGHLIGHTS (continued)

(Third Quarter 2012 vs. Second Quarter 2012)

Non-Strategic (continued)

•

Noninterest expense decreased $268.4 million in third quarter to $35.4 million

•

No provision for repurchase and foreclosure losses was recognized in third quarter; recognized $250.0 million in second quarter

•

The $250.0 million charge to the repurchase and foreclosure provision in prior quarter reflects a change in estimate of FHN’s repurchase obligations for alleged breaches of reps and warranties related to mortgage loans sold to Fannie and Freddie

•

Reserve levels declined $68.5 million in third quarter to $291.9 million

•

The decline in repurchase reserves reflects charge-offs on resolutions in third quarter

•

Active pipeline increased to $446.3 million from $430.6 million in prior quarter

•

Repurchase/make whole requests were $392.9 million as of the end of the third quarter and primarily relate to requests from Fannie/Freddie

•

Cumulative average rescission rates ranging between 45 percent and 55 percent with cumulative average loss severities ranging between 50 percent and 60 percent

•

Third quarter includes a $6.6 million loss accrual related to a legal settlement compared to a $22.0 million accrual in the prior quarter

Asset Quality

•

Consumer portfolios, primarily consumer real estate, affected by recently issued regulatory guidance related to secured loans discharged in bankruptcy (“discharged bankruptcies”) when loan has not been reaffirmed by the borrower

•

Such loans are charged down to estimated collateral value less disposition costs (net realizable value)

•

Remaining balances reported as nonperforming loans and troubled debt restructurings

•

Guidance applies regardless of payment status

•

Allowance as a percentage of loans ratio decreased to 171 basis points from 198 basis points in prior quarter

•

The allowance decreased by $39.3 million to $281.7 million and period end loan balances increased $338.0 million in third quarter to $16.5 billion

•

Provision expense increased to $40.0 million during third quarter from $15.0 million in prior quarter

•

Approximately $30 million associated with implementation of recently issued regulatory guidance

•

Annualized net charge-offs increased to 192 basis points of average loans from 101 basis points in prior quarter

•

Net charge-offs were $79.3 million in third quarter compared to $40.0 million in prior quarter

•

Third quarter net charge-offs include $40.0 million of charge-offs associated with implementation of recently issued regulatory guidance

•

Nonperforming assets (“NPAs”) decreased 4 percent from prior quarter; NPA ratio declined to 215 basis points from 232 basis points

•

Consumer NPLs (including loans held-for-sale) increased 13 percent to $185.5 million in third quarter; increase largely driven by implementation of recently issued regulatory guidance

•

Approximately 80 percent of the loans placed on NPL as a result of recently issued regulatory guidance are current

•

Commercial NPLs decreased 15 percent to $214.3 million in third quarter

•

A portion of the decline is driven by a large CRE relationship that was returned to accrual status in third quarter

•

Troubled debt restructurings (“TDRs”) were $543.3 million at the end of third quarter compared with $478.1 million prior quarter

•

The increase in third quarter reflects the impact of implementing recently issued regulatory guidance

•

Commercial Portfolio:

•

Reserves decreased $18.3 million from prior quarter primarily driven by the residential CRE portfolio within the regional bank

•

Reserve levels reflect continued aggregate improvement of the portfolio

•

Some upgrades within the TRUPs and bank stock portfolio; three TRUPS came out of deferral totaling $22.0 million (excluding LOCOM)

•

Consumer Portfolio

•

Reserves decreased $21.0 million in third quarter from $168.9 million in second quarter driven by the consumer real estate portfolio within the non-strategic segment

•

$10.0 million of the reserve decrease was associated with charging down discharged bankruptcies to estimated collateral value; reserves no longer required for these loans

•

Balances of consumer real estate loans increased within the regional banking segment and were offset by runoff from the non-strategic portfolios

•

30+ Delinquencies increased 6 percent to $74.1 million in third quarter; somewhat affected by seasonality and staffing within the default servicing function

•

Reserves for the permanent mortgage portfolio decreased $2.9 million; allowance to loans decreased to 3.15 percent from 3.77 percent

•

Period end balances increased $52.5 million to $791.3 million in third quarter due to exercise of cleanup calls

•

30+ Delinquencies increased $11.3 million to $22.3 million in third quarter; increase somewhat affected by seasonality

•

Approximately half of the increase relates to a small number of large balance loans

Taxes

•

Third quarter includes $7.7 million of positive effect from permanent tax credits

•

Permanent credits primarily relate to tax credit investments, life insurance, and tax exempt interest

Capital and Liquidity

•

Paid $0.01 per share dividend October 1, 2012

•

Repurchased shares costing $14.9 million in third quarter under the $200 million stock repurchase program

•

Repurchased shares costing $140.5 million since the program’s inception

•

Volume weighted average price for all share repurchases under the stock repurchase program of $8.38 per share (before $.03 per share broker commission)

•

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

•

8.13% for tangible common equity to tangible assets

•

13.14% for Tier 1

•

15.98% for Total Capital

•

10.68% for Tier 1 Common

FHN CHARGES FOR RESTRUCTURING, REPOSITIONING, & EFFICIENCY INITIATIVES

Quarterly, Unaudited


(Thousands)	3Q12			2Q12			1Q12			4Q11			3Q11
By Income Statement Impact
Noninterest income
Mortgage banking (a)	$	—		$	(2,287	)	$	—		$	—		$	—
All other income and commissions		—			—			—			—			1,200
Gain on divestiture		—			—			200			—			—
Noninterest expense
Employee compensation, incentives, and benefits		2,730			2,191			(152	)		3,760			2,128
Occupancy		41			(219	)		44			39			1,031
Legal and professional fees		—			—			15			(27	)		—
All other expense		—			12			5			220			74

Total gain/(loss) before income taxes		(2,771	)		(4,271	)		288			(3,992	)		(2,033	)
Income/(loss) from discontinued operations (b)		180			485			(96	)		(84	)		8,951

Net impact resulting from restructuring, repositioning, and efficiency initiatives	$	(2,591	)	$	(3,786	)	$	192		$	(4,076	)	$	6,918

(a)	Reflects adjustment due to contingencies associated with prior mortgage servicing sales.

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

FHN CONSOLIDATED SUMMARY RESULTS

Quarterly, Unaudited


																3Q12 Changes vs.
(Dollars in thousands, except per share data)	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11
Income Statement Highlights
Net interest income	$	173,465		$	172,675		$	171,929		$	178,877		$	176,340			*			(2	)%
Noninterest income		163,538			153,842			202,113			180,993			185,725			6	%		(12	)%
Securities gains/(losses), net		—			5,065			328			203			35,162			NM			NM

Total revenue		337,003			331,582			374,370			360,073			397,227			2	%		(15	)%

Noninterest expense		263,169			527,177			321,994			312,036			322,708			(50	)%		(18	)%
Provision for loan losses		40,000			15,000			8,000			10,000			32,000			NM			25	%

Income/(loss) before income taxes		33,834			(210,595	)		44,376			38,037			42,519			NM			(20	)%
Provision/(benefit) for income taxes		5,260			(88,178	)		10,570			(526	)		8,367			NM			(37	)%

Income/(loss) from continuing operations		28,574			(122,417	)		33,806			38,563			34,152			NM			(16	)%
Income/(loss) from discontinued operations, net of tax		108			487			(435	)		(752	)		4,828			(78	)%		(98	)%

Net income/(loss)		28,682			(121,930	)		33,371			37,811			38,980			NM			(26	)%

Net income attributable to noncontrolling interest		2,875			2,844			2,844			2,871			2,875			1	%		*

Net income/(loss) available to common shareholders	$	25,807		$	(124,774	)	$	30,527		$	34,940		$	36,105			NM			(29	)%

Common Stock Data
Diluted EPS from continuing operations	$	0.10		$	(0.50	)	$	0.12		$	0.13		$	0.12			NM			(17	)%
Diluted EPS	$	0.10		$	(0.50	)	$	0.12		$	0.13		$	0.14			NM			(29	)%
Diluted shares (thousands)		248,306			249,104			255,369			260,372			262,803			*			(6	)%
Period-end shares outstanding (thousands)		247,134			248,810			252,667			257,468			263,619			(1	)%		(6	)%
Cash dividends declared per share	$	0.01		$	0.01		$	0.01		$	0.01		$	0.01

Balance Sheet Highlights (Period-End)
Total loans, net of unearned income (Restricted - $ .1 billion) (a)	$	16,523,783		$	16,185,763		$	15,971,330		$	16,397,127		$	16,241,402			2	%		2	%
Total deposits		16,228,111			16,117,443			16,935,170			16,213,009			15,698,255			1	%		3	%
Total assets (Restricted - $ .1 billion) (a)		25,739,830			25,492,955			25,678,969			24,789,384			25,571,469			1	%		1	%
Total liabilities (Restricted - $ .1 billion) (a)		23,207,942			22,978,549			23,004,796			22,104,747			22,828,239			1	%		2	%
Total equity		2,531,888			2,514,406			2,674,173			2,684,637			2,743,230			1	%		(8	)%

Asset Quality Highlights
Allowance for loan losses (Restricted - $ 4.4 million) (a)	$	281,744		$	321,051		$	346,016		$	384,351		$	449,645			(12	)%		(37	)%
Allowance / period-end loans		1.71	%		1.98	%		2.17	%		2.34	%		2.77	%
Net charge-offs (b)	$	79,307		$	39,965		$	46,335		$	75,294		$	106,446			98	%		(25	)%
Net charge-offs (annualized) / average loans (b)		1.92	%		1.01	%		1.16	%		1.84	%		2.65	%
Non-performing assets (NPA)	$	450,391		$	466,873		$	511,320		$	521,161		$	582,572			(4	)%		(23	)%
NPA % (c)		2.15	%		2.32	%		2.56	%		2.57	%		3.02	%

Key Ratios & Other
Return on average assets (annualized) (d)		0.45	%		(1.96	)%		0.53	%		0.60	%		0.62	%
Return on average common equity (annualized) (e)		4.59	%		(21.06	)%		5.15	%		5.69	%		5.90	%
Net interest margin (f)(g)		3.15	%		3.16	%		3.12	%		3.23	%		3.23	%
Fee income to total revenue (h)		48.53	%		47.12	%		54.03	%		50.29	%		51.30	%
Efficiency ratio (i)		78.09	%		161.45	%		86.08	%		86.71	%		89.13	%
Book value per common share	$	9.05		$	8.92		$	9.42		$	9.28		$	9.29
Tangible book value per common share (g)	$	8.41		$	8.28		$	8.78		$	8.66		$	8.68
Adjusted tangible common equity to risk weighted assets (g)		10.03	%		9.97	%		10.88	%		10.80	%		11.09	%
Market capitalization (millions)	$	2,379.9		$	2,152.2		$	2,622.7		$	2,059.7		$	1,571.2
Full time equivalent employees		4,585			4,619			4,629			4,718			4,812			(1	)%		(5	)%

NM - Not meaningful

*	Amount is less than one percent.

(a)	Restricted balances parenthetically presented are as of September 30, 2012.

(b)	3Q12 includes approximately $40 million of charge-offs associated with the implementation of recently issued regulatory guidance.

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

(d)	Calculated using net income.

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

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

(g)	Refer to the Non-GAAP to GAAP Reconciliation on page 27 of this financial supplement.

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

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

FHN CONSOLIDATED INCOME STATEMENT

Quarterly, Unaudited


														3Q12 Changes vs.
(Thousands)	3Q12		2Q12			1Q12			4Q11			3Q11		2Q12			3Q11
Interest income	$	200,516	$	200,735		$	201,503		$	209,715		$	208,360		*			(4	)%
Less: interest expense		27,051		28,060			29,574			30,838			32,020		(4	)%		(16	)%

Net interest income		173,465		172,675			171,929			178,877			176,340		*			(2	)%
Provision for loan losses (a)		40,000		15,000			8,000			10,000			32,000		NM			25	%

Net interest income after provision for loan losses		133,465		157,675			163,929			168,877			144,340		(15	)%		(8	)%

Noninterest income:
Capital markets		80,773		74,913			106,743			87,756			99,557		8	%		(19	)%
Mortgage banking		10,373		9,889			23,341			18,008			12,751		5	%		(19	)%
Deposit transactions and cash management (b)		30,352		30,123			28,741			31,349			35,701		1	%		(15	)%
Trust services and investment management		6,055		6,477			5,808			5,822			6,086		(7	)%		(1	)%
Brokerage management fees and commissions		8,699		8,759			8,496			7,572			9,576		(1	)%		(9	)%
Insurance commissions		946		830			568			1,399			739		14	%		28	%
Securities gains/(losses), net (c)		—		5,065			328			203			35,162		NM			NM
Gain on divestiture		—		—			200			—			—		NM			NM
Other (d)		26,340		22,851			28,216			29,087			21,315		15	%		24	%

Total noninterest income		163,538		158,907			202,441			181,196			220,887		3	%		(26	)%

Adjusted gross income after provision for loan losses		297,003		316,582			366,370			350,073			365,227		(6	)%		(19	)%

Noninterest expense:
Employee compensation, incentives, and benefits		153,970		149,616			175,458			149,013			153,540		3	%		*
Repurchase and foreclosure provision (e)		—		250,000			49,256			45,033			52,791		NM			NM
Operations services		8,702		9,477			9,127			10,601			11,978		(8	)%		(27	)%
Occupancy		13,059		11,486			12,119			12,168			13,523		14	%		(3	)%
Legal and professional fees		12,295		8,417			6,067			12,708			18,132		46	%		(32	)%
FDIC premium expense		7,532		6,801			6,336			5,504			5,904		11	%		28	%
Computer software		10,260		9,960			9,465			9,507			8,689		3	%		18	%
Contract employment and outsourcing		10,187		10,844			11,115			12,514			14,352		(6	)%		(29	)%
Equipment rentals, depreciation, and maintenance		7,931		7,789			7,616			7,748			8,795		2	%		(10	)%
Foreclosed real estate		2,968		1,908			4,170			4,793			4,691		56	%		(37	)%
Communications and courier		4,722		4,484			4,499			4,384			4,428		5	%		7	%
Miscellaneous loan costs		577		1,298			1,327			1,354			959		(56	)%		(40	)%
Amortization of intangible assets		979		979			973			1,000			1,004		*			(2	)%
Other (d)		29,987		54,118			24,466			35,709			23,922		(45	)%		25	%

Total noninterest expense		263,169		527,177			321,994			312,036			322,708		(50	)%		(18	)%

Income/(loss) before income taxes		33,834		(210,595	)		44,376			38,037			42,519		NM			(20	)%
Provision/(benefit) for income taxes		5,260		(88,178	)		10,570			(526	)		8,367		NM			(37	)%

Income/(loss) from continuing operations		28,574		(122,417	)		33,806			38,563			34,152		NM			(16	)%
Income/(loss) from discontinued operations, net of tax		108		487			(435	)		(752	)		4,828		(78	)%		(98	)%

Net income/(loss)		28,682		(121,930	)		33,371			37,811			38,980		NM			(26	)%

Net income attributable to noncontrolling interest		2,875		2,844			2,844			2,871			2,875		1	%		*

Net income/(loss) available to common shareholders	$	25,807	$	(124,774	)	$	30,527		$	34,940		$	36,105		NM			(29	)%

NM - Not meaningful

*	Amount is less than one percent.

(a)	3Q12 includes approximately $30 million associated with charging down discharged bankruptcies to estimate of collateral value; 3Q11 includes approximately $36 million of losses on sales of nonperforming loans.

(b)	Fees impacted by the Durbin Amendment which became effective in 4Q11 resulting in lower interchange income.

(c)	2Q12 includes a $5.1 million gain on sale of venture capital investment; 3Q11 includes a $35.1 million gain associated with the sale of a portion of Visa Class B Shares.

(d)	Refer to the Other Income and Other Expense table on page 9 for additional information.

(e)	2Q12 includes $250.0 million charge to the repurchase and foreclosure provision primarily related to a revision in estimate based on information received from Fannie Mae.

FHN OTHER INCOME AND OTHER EXPENSE

Quarterly, Unaudited


													3Q12 Changes vs.
(Thousands)	3Q12		2Q12			1Q12		4Q11		3Q11			2Q12			3Q11
Other Income
Bank owned life insurance	$	4,293	$	4,659		$	4,772	$	4,764	$	5,116			(8	)%		(16	)%
Bankcard income (a)		5,298		5,705			5,615		7,259		5,258			(7	)%		1	%
ATM and interchange fees (b)		2,579		2,669			2,556		2,655		3,709			(3	)%		(30	)%
Other service charges		3,263		3,212			3,293		3,541		2,969			2	%		10	%
Electronic banking fees		1,589		1,632			1,706		1,546		1,609			(3	)%		(1	)%
Letter of credit fees		1,072		1,560			1,334		1,230		1,407			(31	)%		(24	)%
Deferred compensation (c)		1,966		(1,020	)		3,119		376		(2,093	)		NM			NM
Other (d)		6,280		4,434			5,821		7,716		3,340			42	%		88	%

Total	$	26,340	$	22,851		$	28,216	$	29,087	$	21,315			15	%		24	%

Other Expense
Losses from litigation and regulatory matters	$	6,760	$	22,100		$	153	$	694	$	—			(69	)%		NM
Advertising and public relations		4,121		3,153			4,250		4,965		4,571			31	%		(10	)%
Tax credit investments (e)		5,635		4,214			4,608		5,974		4,712			34	%		20	%
Other insurance and taxes (f)		1,327		3,130			3,199		3,395		3,352			(58	)%		(60	)%
Travel and entertainment		2,009		2,435			1,864		2,342		2,075			(17	)%		(3	)%
Customer relations		1,027		1,348			855		1,301		1,185			(24	)%		(13	)%
Employee training and dues		1,032		1,230			1,092		1,172		1,009			(16	)%		2	%
Supplies		881		817			1,033		953		1,092			8	%		(19	)%
Bank examination costs		816		800			799		1,127		1,138			2	%		(28	)%
Loan insurance expense		578		636			589		676		744			(9	)%		(22	)%
Federal services fees		323		328			321		342		338			(2	)%		(4	)%
Other (g) (h)		5,478		13,927			5,703		12,768		3,706			(61	)%		48	%

Total	$	29,987	$	54,118		$	24,466	$	35,709	$	23,922			(45	)%		25	%

NM - Not meaningful

*	Amount is less than one percent.

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

(b)	Fees primarily impacted by the Durbin Amendment which became effective in 4Q11 resulting in lower interchange income.

(c)	Amounts driven by market conditions and are mirrored by changes in deferred compensation expense which is included in employee compensation expense.

(d)	1Q12 includes $2.3 million associated with resolution of a legal matter. 4Q11 includes $4.0 million of interest related to a tax refund.

(e)	3Q12 includes a $1.5 million impairment of an investment.

(f)	3Q12 includes a $1.8 million adjustment to franchise taxes.

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

(h)	3Q12 includes a $1.8 million gain related to clean-up calls for first lien securitizations. 2Q12 includes a $3.4 million increase in ancillary expenses associated with legacy mortgage wind-down activities and $2.8 million related to the write-off of unrecoverable servicing advances.

FHN CONSOLIDATED PERIOD-END BALANCE SHEET

Quarterly, Unaudited


																3Q12 Changes vs.
(Thousands)	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11
Assets
Investment securities	$	3,123,629		$	3,264,866		$	3,296,603		$	3,066,272		$	3,327,846			(4	)%		(6	)%
Loans held-for-sale		410,550			424,051			431,905			413,897			386,147			(3	)%		6	%
Loans, net of unearned income (Restricted - $.1 billion) (a) (b)		16,523,783			16,185,763			15,971,330			16,397,127			16,241,402			2	%		2	%
Federal funds sold and securities purchased under agreements to resell		529,688			525,504			614,705			443,588			719,400			1	%		(26	)%
Interest-bearing cash (c)		440,916			484,430			761,098			452,856			358,537			(9	)%		23	%
Trading securities		1,204,366			1,361,717			1,238,041			988,217			1,227,197			(12	)%		(2	)%

Total earning assets		22,232,932			22,246,331			22,313,682			21,761,957			22,260,529			*			*

Cash and due from banks (Restricted - $.6 million) (a)		355,978			330,931			349,604			384,667			339,895			8	%		5	%
Capital markets receivables		791,190			377,496			522,001			164,987			521,198			NM			52	%
Mortgage servicing rights, net		120,537			129,291			142,956			144,069			150,803			(7	)%		(20	)%
Goodwill		134,242			134,242			134,242			133,659			133,659			*			*
Other intangible assets, net		23,679			24,659			25,638			26,243			27,243			(4	)%		(13	)%
Premises and equipment, net		305,346			311,753			314,903			321,253			326,667			(2	)%		(7	)%
Real estate acquired by foreclosure (d)		70,779			69,603			78,947			85,244			91,492			2	%		(23	)%
Allowance for loan losses (Restricted - $4.4 million) (a)		(281,744	)		(321,051	)		(346,016	)		(384,351	)		(449,645	)		(12	)%		(37	)%
Other assets (Restricted - $1.9 million) (a)		1,986,891			2,189,700			2,143,012			2,151,656			2,169,628			(9	)%		(8	)%

Total assets (Restricted - $.1 billion) (a)	$	25,739,830		$	25,492,955		$	25,678,969		$	24,789,384		$	25,571,469			1	%		1	%

Liabilities and Equity
Deposits
Savings	$	6,608,534		$	5,979,874		$	6,615,289		$	6,624,405		$	6,467,377			11	%		2	%
Other interest-bearing deposits		3,468,367			3,565,873			3,500,445			3,193,697			3,096,621			(3	)%		12	%
Time deposits		1,063,380			1,109,163			1,142,249			1,173,375			1,210,661			(4	)%		(12	)%

Total interest-bearing core deposits		11,140,281			10,654,910			11,257,983			10,991,477			10,774,659			5	%		3	%
Noninterest-bearing deposits		4,569,113			4,833,994			4,969,597			4,613,014			4,412,375			(5	)%		4	%

Total core deposits (e)		15,709,394			15,488,904			16,227,580			15,604,491			15,187,034			1	%		3	%

Certificates of deposit $100,000 and more		518,717			628,539			707,590			608,518			511,221			(17	)%		1	%

Total deposits		16,228,111			16,117,443			16,935,170			16,213,009			15,698,255			1	%		3	%

Federal funds purchased and securities sold under agreements to repurchase		1,794,176			1,780,990			1,801,234			1,887,052			2,101,953			1	%		(15	)%
Trading liabilities		516,970			470,631			567,571			347,285			471,120			10	%		10	%
Other short-term borrowings (f)		856,958			1,094,179			181,570			172,550			621,998			(22	)%		38	%
Term borrowings (Restricted - $ .1 billion) (a)		2,263,238			2,294,224			2,340,706			2,481,660			2,509,804			(1	)%		(10	)%
Capital markets payables		574,201			203,548			361,018			164,708			509,164			NM			13	%
Other liabilities		974,288			1,017,534			817,527			838,483			915,945			(4	)%		6	%

Total liabilities (Restricted - $ .1 billion) (a)		23,207,942			22,978,549			23,004,796			22,104,747			22,828,239			1			2	%

Equity
Common stock (g)		154,459			155,506			157,917			160,918			164,762			(1	)%		(6	)%
Capital surplus (g)		1,517,488			1,528,161			1,560,343			1,601,346			1,641,878			(1	)%		(8	)%
Undivided profits		681,460			658,157			785,361			757,364			724,977			4	%		(6	)%
Accumulated other comprehensive loss, net		(116,684	)		(122,583	)		(124,613	)		(130,156	)		(83,552	)		5	%		(40	)%
Noncontrolling interest (h)		295,165			295,165			295,165			295,165			295,165			*			*

Total equity		2,531,888			2,514,406			2,674,173			2,684,637			2,743,230			1	%		(8	)%

Total liabilities and equity	$	25,739,830		$	25,492,955		$	25,678,969		$	24,789,384		$	25,571,469			1	%		1	%

NM - Not meaningful

*	Amount is less than one percent.

(a)	Restricted balances parenthetically presented are as of September 30, 2012.

(b)	3Q12 and 2Q12 increase primarily relates to an increase in loans to mortgage companies.

(c)	Includes excess balances held at Fed.

(d)	3Q12 includes $20.2 million of foreclosed assets related to government insured mortgages.

(e)	3Q12 average core deposits were $15.3 billion.

(f)	3Q12 and 2Q12 include increased FHLB borrowings as a result of deposit fluctuations and an increase in loans to mortgage companies.

(g)	Decrease relates to shares purchased under the share repurchase program.

(h)	Consists of preferred stock of subsidiary.

FHN CONSOLIDATED AVERAGE BALANCE SHEET

Quarterly, Unaudited


																3Q12 Changes vs.
(Thousands)	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11
Assets:
Earning assets:
Loans, net of unearned income:
Commercial, financial, and industrial (C&I) (a)	$	8,237,939		$	7,712,551		$	7,709,856		$	7,740,802		$	7,181,058			7	%		15	%
Income CRE		1,192,905			1,236,016			1,255,713			1,295,079			1,308,059			(3	)%		(9	)%
Residential CRE		79,107			94,531			111,823			132,669			169,049			(16	)%		(53	)%
Consumer real estate		5,381,577			5,406,435			5,290,632			5,295,881			5,346,893			*			1	%
Permanent mortgage		789,638			755,391			771,187			814,335			985,359			5	%		(20	)%
Credit card and other		277,154			276,017			279,150			289,189			292,800			*			(5	)%
Restricted and secured real estate loans		453,985			479,327			622,931			654,142			681,469			(5	)%		(33	)%

Total loans, net of unearned income (Restricted - $ .1 billion) (b) (c)		16,412,305			15,960,268			16,041,292			16,222,097			15,964,687			3	%		3	%

Loans held-for-sale		413,625			425,176			424,086			399,271			384,108			(3	)%		8	%
Investment securities:
U.S. treasuries		42,551			42,424			40,088			42,935			43,812			*			(3	)%
U.S. government agencies		2,894,104			2,981,090			2,802,651			2,919,690			2,990,375			(3	)%		(3	)%
States and municipalities		17,970			18,005			18,070			17,681			19,365			*			(7	)%
Other		220,324			223,924			224,000			224,530			221,664			(2	)%		(1	)%

Total investment securities		3,174,949			3,265,443			3,084,809			3,204,836			3,275,216			(3	)%		(3	)%

Capital markets securities inventory		1,189,852			1,327,596			1,277,372			1,263,427			1,250,249			(10	)%		(5	)%
Mortgage banking trading securities		20,112			22,841			25,797			26,927			30,320			(12	)%		(34	)%
Other earning assets:
Federal funds sold and securities purchased under agreements to resell		560,143			632,019			632,972			641,464			660,048			(11	)%		(15	)%
Interest-bearing cash (d)		402,378			518,124			821,113			479,621			403,482			(22	)%		*

Total other earning assets		962,521			1,150,143			1,454,085			1,121,085			1,063,530			(16	)%		(9	)%

Total earning assets (Restricted - $ .1 billion) (b)		22,173,364			22,151,467			22,307,441			22,237,643			21,968,110			*			1	%

Allowance for loan losses (Restricted - $ 5.2 million) (b)		(309,810	)		(336,642	)		(372,264	)		(424,774	)		(507,478	)		(8	)%		(39	)%
Cash and due from banks (Restricted - $ .9 million) (b)		339,098			337,366			351,760			337,755			346,100			1	%		(2	)%
Capital markets receivables		168,806			100,408			91,430			108,815			124,192			68	%		36	%
Premises and equipment, net		306,709			312,313			317,621			323,569			328,172			(2	)%		(7	)%
Other assets (Restricted - $ 2.2 million) (b)		2,411,587			2,449,723			2,504,385			2,479,298			2,519,020			(2	)%		(4	)%

Total assets (Restricted - $ .1 billion) (b)	$	25,089,754		$	25,014,635		$	25,200,373		$	25,062,306		$	24,778,116			*			1	%

Liabilities and equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Savings	$	6,106,767		$	6,290,143		$	6,690,470		$	6,559,779		$	6,479,880			(3	)%		(6	)%
Other interest-bearing deposits		3,426,864			3,512,390			3,246,658			2,991,676			2,900,808			(2	)%		18	%
Time deposits		1,085,368			1,125,738			1,155,716			1,190,464			1,244,602			(4	)%		(13	)%

Total interest-bearing core deposits		10,618,999			10,928,271			11,092,844			10,741,919			10,625,290			(3	)%		*
Certificates of deposit $100,000 and more		570,415			675,688			660,256			544,394			507,086			(16	)%		12	%
Federal funds purchased and securities sold under agreements to repurchase		1,836,555			1,879,252			2,003,566			2,170,222			2,081,379			(2	)%		(12	)%
Capital markets trading liabilities		544,422			602,344			614,084			629,019			626,982			(10	)%		(13	)%
Other short-term borrowings (e)		967,303			377,075			182,083			362,579			284,163			NM			NM
Term borrowings (Restricted - $ .1 billion) (b)		2,279,344			2,317,247			2,457,291			2,506,088			2,491,227			(2	)%		(9	)%

Total interest-bearing liabilities		16,817,038			16,779,877			17,010,124			16,954,221			16,616,127			*			1	%

Noninterest-bearing deposits		4,660,529			4,696,844			4,623,457			4,519,590			4,546,876			(1	)%		2	%
Capital markets payables		116,680			73,312			71,180			68,662			102,831			59	%		13	%
Other liabilities		965,180			786,886			814,417			785,356			789,190			23	%		22	%
Equity		2,530,327			2,677,716			2,681,195			2,734,477			2,723,092			(6	)%		(7	)%

Total liabilities and equity (Restricted - $ .1 billion) (b)	$	25,089,754		$	25,014,635		$	25,200,373		$	25,062,306		$	24,778,116			*			1	%

NM - Not meaningful

*	Amount is less than one percent.

(a)	3Q12 increase primarily relates to an increase in loans to mortgage companies.

(b)	Restricted balances parenthetically presented are quarterly averages as of September 30, 2012.

(c)	Includes loans on nonaccrual status.

(d)	Includes excess balances held at Fed.

(e)	2Q12 and 3Q12 include increased FHLB borrowings as a result of deposit fluctuations and an increase in loans to mortgage companies.

FHN CONSOLIDATED NET INTEREST INCOME (a)

Quarterly, Unaudited


																3Q12 Changes vs.
(Thousands)	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11
Interest Income:
Loans, net of unearned income (b)	$	165,368		$	162,698		$	163,070		$	169,169		$	163,774			2	%		1	%
Loans held-for-sale		3,808			3,628			3,738			3,859			5,126			5	%		(26	)%
Investment securities:
U.S. treasuries		11			39			66			67			66			(72	)%		(83	)%
U.S. government agencies		21,759			23,562			23,768			25,262			27,615			(8	)%		(21	)%
States and municipalities		65			63			76			99			116			3	%		(44	)%
Other		2,323			2,324			2,422			2,264			2,249			*			3	%

Total investment securities		24,158			25,988			26,332			27,692			30,046			(7	)%		(20	)%

Capital markets securities inventory		7,998			9,204			8,934			9,789			10,141			(13	)%		(21	)%
Mortgage banking trading securities		569			578			642			675			706			(2	)%		(19	)%
Other earning assets:
Federal funds sold and securities purchased under agreements to resell (c)		165			115			—			(32	)		(58	)		43	%		NM
Interest-bearing cash		202			280			446			213			180			(28	)%		12	%

Total other earning assets		367			395			446			181			122			(7	)%		NM

Interest income	$	202,268		$	202,491		$	203,162		$	211,365		$	209,915			*			(4	)%

Interest Expense:
Interest-bearing deposits:
Savings	$	4,764		$	4,744		$	5,619		$	5,921		$	6,773			*			(30	)%
Other interest-bearing deposits		1,455			1,655			1,518			1,407			1,650			(12	)%		(12	)%
Time deposits		5,169			5,541			5,916			6,363			7,096			(7	)%		(27	)%

Total interest-bearing core deposits		11,388			11,940			13,053			13,691			15,519			(5	)%		(27	)%
Certificates of deposit $100,000 and more		1,975			2,305			2,306			2,166			2,328			(14	)%		(15	)%
Federal funds purchased and securities sold under agreements to repurchase		1,096			1,114			1,223			1,269			1,159			(2	)%		(5	)%
Capital markets trading liabilities		2,556			2,843			2,515			3,363			3,703			(10	)%		(31	)%
Other short-term borrowings		347			36			142			171			230			NM			51	%
Term borrowings		9,689			9,822			10,335			10,178			9,081			(1	)%		7	%

Interest expense		27,051			28,060			29,574			30,838			32,020			(4	)%		(16	)%

Net interest income - tax equivalent basis		175,217			174,431			173,588			180,527			177,895			*			(2	)%
Fully taxable equivalent adjustment		(1,752	)		(1,756	)		(1,659	)		(1,650	)		(1,555	)		*			(13	)%

Net interest income	$	173,465		$	172,675		$	171,929		$	178,877		$	176,340			*			(2	)%

NM - Not meaningful

*	Amount is less than one percent.

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

(b)	Includes loans on nonaccrual status.

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

FHN CONSOLIDATED AVERAGE BALANCE SHEET: YIELDS AND RATES

Quarterly, Unaudited


(Thousands)	3Q12			2Q12			1Q12			4Q11			3Q11
Assets:
Earning assets (a):
Loans, net of unearned income:
Commercial loans		3.81	%		3.92	%		3.90	%		3.95	%		3.84	%
Retail loans		4.30			4.33			4.32			4.42			4.37

Total loans, net of unearned income (b)		4.01			4.09			4.08			4.15			4.08

Loans held-for-sale		3.68			3.41			3.53			3.87			5.34
Investment securities:
U.S. treasuries		0.11			0.37			0.66			0.62			0.60
U.S. government agencies		3.01			3.16			3.39			3.46			3.69
States and municipalities		1.44			1.39			1.68			2.23			2.39
Other		4.22			4.15			4.33			4.03			4.06

Total investment securities		3.04			3.18			3.41			3.46			3.67

Capital markets securities inventory		2.69			2.77			2.80			3.10			3.24
Mortgage banking trading securities		11.31			10.12			9.96			10.03			9.31
Other earning assets:
Federal funds sold and securities purchased under agreements to resell (c)		0.12			0.07			—			(0.02	)		(0.03	)
Interest-bearing cash		0.20			0.22			0.22			0.18			0.18

Total other earning assets		0.15			0.14			0.12			0.06			0.05

Interest income/total earning assets		3.64	%		3.67	%		3.65	%		3.78	%		3.80	%


Liabilities:
Interest-bearing liabilities:
Interest-bearing deposits:
Savings		0.31	%		0.30	%		0.34	%		0.36	%		0.41	%
Other interest-bearing deposits		0.17			0.19			0.19			0.19			0.23
Time deposits		1.89			1.98			2.06			2.12			2.26

Total interest-bearing core deposits		0.43			0.44			0.47			0.51			0.58
Certificates of deposit $100,000 and more		1.38			1.37			1.40			1.58			1.82
Federal funds purchased and securities sold under agreements to repurchase		0.24			0.24			0.25			0.23			0.22
Capital markets trading liabilities		1.87			1.90			1.65			2.12			2.34
Other short-term borrowings		0.14			0.04			0.31			0.19			0.32
Term borrowings (d)		1.70			1.70			1.68			1.63			1.46

Interest expense/total interest-bearing liabilities		0.64			0.67			0.70			0.72			0.77

Net interest spread		3.00	%		3.00	%		2.95	%		3.06	%		3.03	%
Effect of interest-free sources used to fund earning assets		0.15			0.16			0.17			0.17			0.20

Net interest margin		3.15	%		3.16	%		3.12	%		3.23	%		3.23	%

Yields are adjusted to a fully taxable equivalent (“FTE”) basis. Refer to the Non-GAAP to GAAP Reconciliation on page 27 for reconciliation of net interest income (GAAP) to net interest income adjusted for impact of FTE - (non-GAAP).

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

(b)	Includes loans on nonaccrual status.

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

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

FHN MORTGAGE SERVICING RIGHTS

Quarterly, Unaudited


																3Q12 Changes vs.
(Thousands)	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11
First Liens
Fair value beginning balance	$	126,085		$	139,676		$	140,724		$	147,431		$	183,530
Reductions due to loan payments		(6,050	)		(6,665	)		(5,499	)		(3,567	)		(5,286	)
Reductions due to exercise of cleanup calls		(494	)		—			—			—			—
Changes in fair value due to:
Changes in valuation model inputs or assumptions (a)		(2,107	)		(6,855	)		4,459			(3,140	)		(30,813	)
Other changes in fair value		6			(71	)		(8	)		—			—

Fair value ending balance	$	117,440		$	126,085		$	139,676		$	140,724		$	147,431			(7	)%		(20	)%

Second Liens
Fair value beginning balance	$	215		$	222		$	231		$	241		$	251
Reductions due to loan payments		(10	)		(7	)		(9	)		(10	)		(10	)

Fair value ending balance	$	205		$	215		$	222		$	231		$	241			(5	)%		(15	)%

HELOC
Fair value beginning balance	$	2,991		$	3,058		$	3,114		$	3,131		$	3,177
Reductions due to loan payments		(102	)		(79	)		(76	)		(54	)		(59	)
Changes in fair value due to:
Other changes in fair value		3			12			20			37			13

Fair value ending balance	$	2,892		$	2,991		$	3,058		$	3,114		$	3,131			(3	)%		(8	)%

Total Consolidated
Fair value beginning balance	$	129,291		$	142,956		$	144,069		$	150,803		$	186,958
Reductions due to loan payments		(6,162	)		(6,751	)		(5,584	)		(3,631	)		(5,355	)
Reductions due to exercise of cleanup calls		(494	)		—			—			—			—
Changes in fair value due to:
Changes in valuation model inputs or assumptions (a)		(2,107	)		(6,855	)		4,459			(3,140	)		(30,813	)
Other changes in fair value		9			(59	)		12			37			13

Fair value ending balance	$	120,537		$	129,291		$	142,956		$	144,069		$	150,803			(7	)%		(20	)%

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

FHN BUSINESS SEGMENT HIGHLIGHTS

Quarterly, Unaudited


																3Q12 Changes vs.
(Thousands)	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11
Regional Banking
Net interest income	$	150,352		$	147,826		$	146,681		$	150,199		$	140,658			2	%		7	%
Noninterest income		63,954			64,838			59,901			64,559			68,096			(1	)%		(6	)%

Total revenues		214,306			212,664			206,582			214,758			208,754			1	%		3	%
Provision/(provision credit) for loan losses		4,286			4,828			(7,426	)		(12,654	)		(22,698	)		(11	)%		NM
Noninterest expense		141,157			142,704			140,186			136,453			137,208			(1	)%		3	%

Income before income taxes		68,863			65,132			73,822			90,959			94,244			6	%		(27	)%
Provision for income taxes		24,959			23,494			26,929			33,509			34,851			6	%		(28	)%

Net income	$	43,904		$	41,638		$	46,893		$	57,450		$	59,393			5	%		(26	)%

Capital Markets
Net interest income	$	4,759		$	5,613		$	5,684		$	5,527		$	5,552			(15	)%		(14	)%
Noninterest income		80,808			74,964			106,775			88,230			99,505			8	%		(19	)%

Total revenues		85,567			80,577			112,459			93,757			105,057			6	%		(19	)%
Noninterest expense		64,590			60,894			80,288			66,721			77,168			6	%		(16	)%

Income before income taxes		20,977			19,683			32,171			27,036			27,889			7	%		(25	)%
Provision for income taxes		7,899			7,419			12,246			10,302			10,656			6	%		(26	)%

Net income	$	13,078		$	12,264		$	19,925		$	16,734		$	17,233			7	%		(24	)%

Corporate
Net interest income/(expense)	$	(5,294	)	$	(4,732	)	$	(5,334	)	$	(4,366	)	$	(1,080	)		(12	)%		NM
Noninterest income		7,933			3,838			9,266			9,865			37,914			NM			(79	)%

Total revenues		2,639			(894	)		3,932			5,499			36,834			NM			(93	)%
Noninterest expense		22,013			19,770			22,884			29,219			19,099			11	%		15	%

Income/(loss) before income taxes		(19,374	)		(20,664	)		(18,952	)		(23,720	)		17,735			6	%		NM
Provision/(benefit) for income taxes		(13,496	)		(13,314	)		(12,178	)		(22,686	)		340			(1	)%		NM

Net income/(loss)	$	(5,878	)	$	(7,350	)	$	(6,774	)	$	(1,034	)	$	17,395			20	%		NM

Non-Strategic
Net interest income	$	23,648		$	23,968		$	24,898		$	27,517		$	31,210			(1	)%		(24	)%
Noninterest income		10,843			15,267			26,499			18,542			15,372			(29	)%		(29	)%

Total revenues		34,491			39,235			51,397			46,059			46,582			(12	)%		(26	)%
Provision for loan losses		35,714			10,172			15,426			22,654			54,698			NM			(35	)%
Noninterest expense (a)		35,409			303,809			78,636			79,643			89,233			(88	)%		(60	)%

Loss before income taxes		(36,632	)		(274,746	)		(42,665	)		(56,238	)		(97,349	)		87	%		62	%
Benefit for income taxes		(14,102	)		(105,777	)		(16,427	)		(21,651	)		(37,480	)		87	%		62	%

Loss from continuing operations		(22,530	)		(168,969	)		(26,238	)		(34,587	)		(59,869	)		87	%		62	%
Income/(loss) from discontinued operations, net of tax		108			487			(435	)		(752	)		4,828			(78	)%		(98	)%

Net loss	$	(22,422	)	$	(168,482	)	$	(26,673	)	$	(35,339	)	$	(55,041	)		87	%		59	%

Total Consolidated
Net interest income	$	173,465		$	172,675		$	171,929		$	178,877		$	176,340			*			(2	)%
Noninterest income		163,538			158,907			202,441			181,196			220,887			3	%		(26	)%

Total revenues		337,003			331,582			374,370			360,073			397,227			2	%		(15	)%
Provision for loan losses		40,000			15,000			8,000			10,000			32,000			NM			25	%
Noninterest expense		263,169			527,177			321,994			312,036			322,708			(50	)%		(18	)%

Income/(loss) before income taxes		33,834			(210,595	)		44,376			38,037			42,519			NM			(20	)%
Provision/(benefit) for income taxes		5,260			(88,178	)		10,570			(526	)		8,367			NM			(37	)%

Income/(loss) from continuing operations		28,574			(122,417	)		33,806			38,563			34,152			NM			(16	)%
Income/(loss) from discontinued operations, net of tax		108			487			(435	)		(752	)		4,828			(78	)%		(98	)%

Net income/(loss)	$	28,682		$	(121,930	)	$	33,371		$	37,811		$	38,980			NM			(26	)%

NM - Not meaningful

*	Amount is less than one percent.

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

(a)	3Q12 includes no charge to the repurchase and foreclosure provision; 2Q12 includes $250.0 million charge to the repurchase and foreclosure provision primarily related to a revision in estimate based on information received from Fannie Mae.

FHN REGIONAL BANKING

Quarterly, Unaudited


																3Q12 Changes vs.
	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11
Income Statement (thousands)
Net interest income	$	150,352		$	147,826		$	146,681		$	150,199		$	140,658			2	%		7	%
Provision for loan losses		4,286			4,828			(7,426	)		(12,654	)		(22,698	)		(11	)%		NM
Noninterest income		63,954			64,838			59,901			64,559			68,096			(1	)%		(6	)%
Noninterest expense:
Employee compensation, incentives, and benefits		58,291			58,914			59,087			55,365			57,168			(1	)%		2	%
Other		82,866			83,790			81,099			81,088			80,040			(1	)%		4	%

Total noninterest expense		141,157			142,704			140,186			136,453			137,208			(1	)%		3	%

Income before income taxes	$	68,863		$	65,132		$	73,822		$	90,959		$	94,244			6	%		(27	)%

Efficiency ratio (a)		65.87	%		67.10	%		67.86	%		63.54	%		65.73	%

Balance Sheet (millions)
Average loans	$	12,221		$	11,650		$	11,533		$	11,509		$	10,891			5	%		12	%
Average other earning assets		69			63			51			56			57			10	%		21	%
Total average earning assets		12,290			11,713			11,584			11,565			10,948			5	%		12	%
Average core deposits		14,312			14,413			13,991			13,402			13,078			(1	)%		9	%
Average other deposits		570			676			660			544			507			(16	)%		12	%
Total average deposits		14,882			15,089			14,651			13,946			13,585			(1	)%		10	%
Total period-end deposits		14,789			15,192			15,344			14,470			13,729			(3	)%		8	%
Total period-end assets		13,244			12,757			12,334			12,586			12,116			4	%		9	%

Net interest margin (b)		4.92	%		5.13	%		5.14	%		5.21	%		5.15	%
Loan yield		3.88			3.91			3.95			3.97			3.98
Deposit average yield		0.34			0.36			0.39			0.41			0.48

Noninterest Income Detail (thousands)
NSF / Overdraft fees (c)	$	13,036		$	12,263		$	11,282		$	13,466		$	14,239			6	%		(8	)%
Cash management fees		8,915			9,179			8,856			9,339			9,206			(3	)%		(3	)%
Debit card income		2,670			2,780			2,552			2,523			6,826			(4	)%		(61	)%
Other		5,625			5,799			5,952			5,906			5,256			(3	)%		7	%

Total deposit transactions and cash management		30,246			30,021			28,642			31,234			35,527			1	%		(15	)%
Insurance commissions		943			824			562			1,392			732			14	%		29	%
Trust services and investment management		6,071			6,493			5,824			5,837			6,098			(6	)%		*
Bankcard income (d)		5,052			5,504			5,457			7,025			5,025			(8	)%		1	%
Mortgage banking		1,495			1,092			859			1,389			1,121			37	%		33	%
Other service charges		2,601			2,643			2,770			2,662			2,605			(2	)%		*
Miscellaneous revenue		17,546			18,261			15,787			15,020			16,988			(4	)%		3	%

Total noninterest income	$	63,954		$	64,838		$	59,901		$	64,559		$	68,096			(1	)%		(6	)%

Key Statistics
Financial center locations		173			173			174			176			176			*			(2	)%
Trust assets - total managed assets (millions)	$	3,917		$	3,837		$	3,472		$	3,345		$	3,296			2	%		19	%
First lien mortgage production (millions)	$	78		$	46		$	51		$	68		$	54			70	%		44	%

*	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 27 of this supplement.

(c)	1Q12 decline primarily attributable to seasonality in NSF fee structure.

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

FHN CAPITAL MARKETS

Quarterly, Unaudited


																3Q12 Changes vs.
	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11
Income Statement (thousands)
Net interest income	$	4,759		$	5,613		$	5,684		$	5,527		$	5,552			(15	)%		(14	)%
Noninterest income:
Fixed income		74,197			68,168			98,553			80,741			92,624			9	%		(20	)%
Other		6,611			6,796			8,222			7,489			6,881			(3	)%		(4	)%

Total noninterest income		80,808			74,964			106,775			88,230			99,505			8	%		(19	)%
Noninterest expense		64,590			60,894			80,288			66,721			77,168			6	%		(16	)%

Income before income taxes	$	20,977		$	19,683		$	32,171		$	27,036		$	27,889			7	%		(25	)%

Efficiency ratio (a)		75.48	%		75.57	%		71.39	%		71.16	%		73.45	%
Fixed income average daily revenue	$	1,178		$	1,082		$	1,590		$	1,324		$	1,447			9	%		(19	)%

Balance Sheet (millions)
Average trading inventory	$	1,190		$	1,328		$	1,277		$	1,263		$	1,250			(10	)%		(5	)%
Average other earning assets		576			669			695			686			689			(14	)%		(16	)%
Total average earning assets		1,766			1,997			1,972			1,949			1,939			(12	)%		(9	)%
Total period-end assets		2,847			2,553			2,692			1,905			2,782			12	%		2	%

Net interest margin (b)		1.12	%		1.15	%		1.18	%		1.16	%		1.17	%

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 27 of this supplement.

FHN CORPORATE

Quarterly, Unaudited


																3Q12 Changes vs.
	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11
Income Statement (thousands)
Net interest income/(expense)	$	(5,294	)	$	(4,732	)	$	(5,334	)	$	(4,366	)	$	(1,080	)		(12	)%		NM
Noninterest income (a)		7,933			3,838			8,938			9,662			2,767			NM			NM
Securities gains, net (b)		—			—			328			203			35,147			*			NM
Noninterest expense (c)		22,013			19,770			22,884			29,219			19,099			11	%		15	%

Income/(loss) before income taxes	$	(19,374	)	$	(20,664	)	$	(18,952	)	$	(23,720	)	$	17,735			6	%		NM

Average Balance Sheet (millions)
Average loans	$	183		$	124		$	137		$	152		$	170			48	%		8	%
Total earning assets	$	3,735		$	3,884		$	4,022		$	3,815		$	3,812			(4	)%		(2	)%
Net interest margin (d)		(.54	) %		(.51	)%		(.55	)%		(.42	)%		(.07	)%

NM - Not meaningful

*	Amount is less than one percent.

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

(a)	2Q12 decline primarily driven by lower deferred compensation income due to market conditions and is mirrored by a reduction in deferred compensation expense.

(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 the 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 27 of this supplement.

FHN NON-STRATEGIC

Quarterly, Unaudited


																3Q12 Changes vs.
	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11
Income Statement (thousands)
Net interest income	$	23,648		$	23,968		$	24,898		$	27,517		$	31,210			(1	)%		(24	)%
Noninterest income:
Mortgage warehouse valuation		(3,470	)		626			1,640			265			(7,084	)		NM			51	%
Service fees		13,778			14,984			17,202			13,368			16,731			(8	)%		(18	)%
Change in MSR value - runoff		(6,049	)		(6,665	)		(5,498	)		(3,567	)		(5,286	)		9	%		(14	)%
Net hedging results		4,486			1,833			9,065			5,887			7,033			NM			(36	)%
Other income (a)		2,098			(576	)		4,090			2,589			3,963			NM			(47	)%

Total noninterest income		10,843			10,202			26,499			18,542			15,357			6	%		(29	)%
Securities gains/(losses), net (b)		—			5,065			—			—			15			NM			NM
Noninterest expense:
Repurchase and foreclosure provision (c)		—			250,000			49,256			45,032			52,790			NM			NM
Other expenses (d)		35,409			53,809			29,380			34,611			36,443			(34	)%		(3	)%

Total noninterest expense		35,409			303,809			78,636			79,643			89,233			(88	)%		(60	)%
Provision for loan losses (e)		35,714			10,172			15,426			22,654			54,698			NM			(35	)%

Loss before income taxes	$	(36,632	)	$	(274,746	)	$	(42,665	)	$	(56,238	)	$	(97,349	)		87	%		62	%

Average Balance Sheet (millions)
Loans	$	4,008		$	4,186		$	4,371		$	4,562		$	4,904			(4	)%		(18	)%
Loans held-for-sale		333			330			316			304			302			1	%		10	%
Trading securities		20			23			26			27			30			(13	)%		(33	)%
Mortgage servicing rights		126			137			141			149			174			(8	)%		(28	)%
Other assets		286			304			336			313			422			(6	)%		(32	)%
Total assets		4,773			4,980			5,190			5,355			5,832			(4	)%		(18	)%
Net interest margin (f)		2.15	%		2.11	%		2.11	%		2.24	%		2.36	%
Efficiency ratio (g)		102.66	%		NM			153.00	%		172.92	%		191.62	%

Mortgage Warehouse - Period-end (millions)
Ending warehouse balance (loans held-for-sale)	$	339		$	336		$	323		$	310		$	299			1	%		13	%

Key Servicing Metrics (h)
Ending servicing portfolio (millions) (i)	$	19,149		$	20,331		$	21,610		$	22,749		$	24,101			(6	)%		(21	)%
Average servicing portfolio (millions) (i)		19,728			20,978			22,184			23,466			24,562			(6	)%		(20	)%
Average number of loans serviced (i)		115,987			121,818			128,068			134,490			140,270			(5	)%		(17	)%

Portfolio Product Mix (average) (h)
GNMA (Ginnie)		2	%		3	%		3	%		3	%		3	%
FNMA/FHLMC (Fannie/Freddie)		33			35			35			35			36
Private		59			57			57			57			57

Sub-total		94			95			95			95			96
FHN permanent mortgage portfolio and warehouse		6			5			5			5			4

Total		100	%		100	%		100	%		100	%		100	%

Other Portfolio Statistics
Weighted average base servicing fee - legacy mortgage banking (bps) (j)		34			34			34			34			34
Weighted average base servicing fee - legacy equity lending (HELOCs and ILs) (bps)		50			50			50			50			50
Servicing cost per loan (annualized) (k)	$	289.79		$	279.17		$	293.33		$	295.20		$	223.03
Servicing book value (bps) (l)(m)		68			68			71			68			66
90+ delinquency rate, excluding foreclosures (n)		10.61	%		10.94	%		11.54	%		12.11	%		12.47	%

NM - Not meaningful

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

(a)	2Q12 includes a $2.3 million adjustment made as a result of contingencies related to prior servicing sales.

(b)	2Q12 includes a $5.1 million gain on sale of venture capital investment.

(c)	2Q12 represents $250.0 million charge to the repurchase and foreclosure provision primarily related to a revision in estimate based on new information received from a GSE.

(d)

3Q12 includes $6.6 million related to a legal settlement; 2Q12 includes $22.0 million loss accrual related to pending legal matters, $3.4 million increase in ancillary expenses associated with legacy mortgage wind-down activities, and $2.8 million related to the write-off of unrecoverable servicing advances.

(e)	3Q12 increase largely associated with charging down discharged bankruptcies to estimate of collateral value based on recently issued regulatory guidance.

(f)	Net interest margin is computed using total net interest income adjusted for FTE. Refer to the Non-GAAP to GAAP Reconciliation on page 27 of this supplement.

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

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

(i)	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.

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

(k)	Calculated based on fees charged by subservicer divided by average number of loans serviced during the quarter.

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

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

(n)	Excludes delinquent second liens and HELOCs.

FHN CAPITAL HIGHLIGHTS

Quarterly, Unaudited


																3Q12 Changes vs.
(Dollars in thousands, except per share amounts)	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11
Tier 1 capital (a)(b)	$	2,641,392		$	2,626,688		$	2,841,064		$	2,850,452		$	2,875,113			1	%		(8	)%
Tier 2 capital (a)(b)	$	570,578		$	570,159		$	687,530		$	751,819		$	751,227			*			(24	)%

Total capital (a)(b)	$	3,211,970		$	3,196,847		$	3,528,594		$	3,602,271		$	3,626,340			*			(11	)%

Risk weighted assets (“RWA”) (a)	$	20,095,037		$	20,022,430		$	19,783,405		$	20,026,412		$	19,910,843			*			1	%
Tier 1 ratio (a)		13.14	%		13.12	%		14.36	%		14.23	%		14.44	%
Tier 2 ratio (a)		2.84	%		2.85	%		3.48	%		3.76	%		3.77	%

Total capital ratio (a)		15.98	%		15.97	%		17.84	%		17.99	%		18.21	%

Tier 1 common ratio (a)(c)		10.68	%		10.65	%		11.86	%		11.76	%		11.95	%
Leverage ratio (a)		10.59			10.56			11.31			11.41			11.65
Total equity to total assets		9.84			9.86			10.41			10.83			10.73
Adjusted tangible common equity to risk weighted assets (“TCE/RWA”) (a)(c)(e)		10.03			9.97			10.88			10.80			11.09
Tangible common equity/tangible assets (“TCE/TA”) (c)(d)		8.13			8.13			8.70			9.05			9.00

*	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 27 of this financial supplement.

(d)	Calculated using period-end balances.

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

FHN ASSET QUALITY: CONSOLIDATED

Quarterly, Unaudited


																3Q12 Changes vs.
(Thousands)	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11
Allowance for Loan Losses Walk-Forward
Beginning reserve	$	321,051		$	346,016		$	384,351		$	449,645		$	524,091			(7	)%		(39	)%
Provision (a)		40,000			15,000			8,000			10,000			32,000			NM			25	%
Charge-offs (b)		(87,022	)		(49,728	)		(57,083	)		(85,918	)		(120,655	)		75	%		(28	)%
Recoveries		7,715			9,763			10,748			10,624			14,209			(21	)%		(46	)%

Ending balance (Restricted - $4.4 million) (c)	$	281,744		$	321,051		$	346,016		$	384,351		$	449,645			(12	)%		(37	)%

Reserve for unfunded commitments		4,572			4,434			5,358			6,945			9,220			3	%		(50	)%
Total allowance for loan losses plus reserve for unfunded commitments	$	286,316		$	325,485		$	351,374		$	391,296		$	458,865			(12	)%		(38	)%

Allowance for Loan Losses
Regional Banking	$	142,060		$	156,060		$	166,115		$	187,791		$	232,269			(9	)%		(39	)%
Non-Strategic		139,684			164,991			179,901			196,560			217,376			(15	)%		(36	)%
Corporate (d)		NM			NM			NM			NM			NM			NM			NM

Total allowance for loan losses	$	281,744		$	321,051		$	346,016		$	384,351		$	449,645			(12	)%		(37	)%

Nonperforming Assets
Regional Banking
Nonperforming loans	$	152,477		$	178,650		$	192,560		$	199,000		$	239,666			(15	)%		(36	)%
Foreclosed real estate (e)		16,000			17,334			18,047			16,563			24,943			(8	)%		(36	)%

Total Regional Banking	$	168,477		$	195,984		$	210,607		$	215,563		$	264,609			(14	)%		(36	)%

Non-Strategic
Nonperforming loans - including held for sale (f)	$	244,899		$	239,099		$	259,421		$	253,069		$	262,645			2	%		(7	)%
Foreclosed real estate (e)		34,589			31,583			41,085			52,322			55,111			10	%		(37	)%

Total Non-Strategic	$	279,488		$	270,682		$	300,506		$	305,391		$	317,756			3	%		(12	)%

Corporate
Nonperforming loans	$	2,426		$	207		$	207		$	207		$	207			NM			NM

Total nonperforming assets	$	450,391		$	466,873		$	511,320		$	521,161		$	582,572			(4	)%		(23	)%

Net Charge-Offs
Regional Banking	$	16,927		$	14,883		$	14,251		$	31,823		$	23,727			14	%		(29	)%
Non-Strategic		62,380			25,082			32,084			43,471			82,719			NM			(25	)%

Total net charge-offs (b)	$	79,307		$	39,965		$	46,335		$	75,294		$	106,446			98	%		(25	)%

Consolidated Key Ratios (g)
NPL %		1.85	%		2.03	%		2.20	%		2.16	%		2.55	%
NPA %		2.15			2.32			2.56			2.57			3.02
Net charge-offs % (b)		1.92			1.01			1.16			1.84			2.65
Allowance / loans		1.71			1.98			2.17			2.34			2.77
Allowance / NPL		0.92x			0.98x			0.98x			1.09x			1.09x
Allowance / NPA		0.79x			0.85x			0.84x			0.91x			0.91x
Allowance / charge-offs (b)		0.89x			2.00x			1.86x			1.29x			1.06x

Other
Loans past due 90 days or more (h)		82,953		$	89,214		$	97,672		$	106,425		$	102,420			(7	)%		(19	)%
Guaranteed portion (h)		35,397			38,758			40,007			42,249			39,572			(9	)%		(11	)%
Foreclosed real estate from government insured loans		20,190			20,687			19,815			16,360			11,438			(2	)%		77	%
Period-end loans, net of unearned income (millions)		16,524			16,186			15,971			16,397			16,241			2	%		2	%
Remaining unfunded commitments (millions)		7,891			7,869			7,717			7,435			7,418			*			6	%

NM - Not meaningful

*	Amount is less than one percent

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

(a)	3Q12 includes approximately $30 million of loan loss provision associated with implementation of recently issued regulatory guidance.

(b)	3Q12 includes approximately $40 million of charge-offs associated with implementation of recently issued regulatory guidance.

(c)	Restricted balances parenthetically presented are as of September 30, 2012. See Glossary of Terms for definition of restricted balances.

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

(e)	Excludes foreclosed real estate from government-insured mortgages.

(f)	3Q12 includes $94.3 million of loans held for sale before $47.3 million of negative fair value adjustments.

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

(h)	Includes loans held for sale.

FHN ASSET QUALITY: CONSOLIDATED

Quarterly, Unaudited


																3Q12 Changes vs.
	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11
Key Portfolio Details C&I
Period-end loans ($ millions)	$	8,466		$	7,982		$	7,705		$	8,015		$	7,706			6	%		10	%

30+ Delinq. % (a)		0.30	%		0.29	%		0.39	%		0.15	%		0.43	%
NPL %		1.78			1.97			2.00			2.02			2.60
Charge-offs % (qtr. annualized) (b)		0.25			0.42			0.08			1.62			0.70

Allowance / loans %		1.26	%		1.39	%		1.55	%		1.63	%		2.37	%
Allowance / charge-offs (b)		5.17	x		3.44	x		19.06	x		1.04	x		3.64	x

Income CRE
Period-end loans ($ millions)	$	1,162		$	1,225		$	1,247		$	1,257		$	1,287			(5	)%		(10	)%

30+ Delinq. % (a)		0.21	%		0.53	%		0.73	%		0.76	%		1.47	%
NPL %		4.04			4.67			5.59			5.50			6.27
Charge-offs % (qtr. annualized)		0.79			0.52			2.41			0.44			1.40

Allowance / loans %		1.94	%		2.39	%		2.64	%		3.15	%		3.67	%
Allowance / charge-offs		2.40	x		4.53	x		1.09	x		6.97	x		2.58	x

Residential CRE
Period-end loans ($ millions)	$	69		$	89		$	100		$	121		$	142			(22	)%		(51	)%

30+ Delinq. % (a)		1.19	%		6.69	%		1.06	%		0.72	%		0.61	%
NPL % (c)		24.46			43.53			43.77			37.87			38.80
Charge-offs % (qtr. annualized)		4.29			5.74			5.70			5.96			8.01

Allowance / loans % (c)		7.00	%		13.69	%		13.11	%		13.20	%		12.67	%
Allowance / charge-offs		1.42	x		2.25	x		2.06	x		2.02	x		1.33	x

Consumer Real Estate
Period-end loans ($ millions)	$	5,319		$	5,408		$	5,392		$	5,291		$	5,305			(2	)%		*

30+ Delinq. % (a)		1.39	%		1.29	%		1.42	%		1.70	%		1.61	%
NPL % (d)		0.93			0.65			0.72			0.67			0.80
Charge-offs % (qtr. annualized) (e)		4.09			1.49			1.99			1.85			2.04

Allowance / loans %		1.90	%		2.12	%		2.26	%		2.63	%		2.55	%
Allowance / charge-offs (e)		0.46	x		1.42	x		1.15	x		1.42	x		1.24	x

Permanent Mortgage
Period-end loans ($ millions) (f)	$	791		$	739		$	751		$	788		$	838			7	%		(6	)%

30+ Delinq. % (a)		2.82	%		1.49	%		2.16	%		3.33	%		5.21	%
NPL %		4.21			4.35			4.47			4.15			2.87
Charge-offs % (qtr. annualized) (g)		1.09			1.36			2.08			2.74			18.83

Allowance / loans %		3.15	%		3.77	%		3.62	%		2.55	%		3.12	%
Allowance / charge-offs		2.91	x		2.71	x		1.70	x		0.90	x		0.14	x

Credit Card and Other
Period-end loans ($ millions)	$	286		$	279		$	271		$	284		$	299			3	%		(4	)%

30+ Delinq. % (a)		1.43	%		1.28	%		1.26	%		1.33	%		1.29	%
NPL %		0.64			0.74			0.79			0.75			1.69
Charge-offs % (qtr. annualized)		3.37			3.82			2.22			5.60			5.27

Allowance / loans %		2.22	%		2.27	%		2.27	%		2.49	%		2.84	%
Allowance / charge-offs		0.68	x		0.60	x		0.99	x		0.44	x		0.55	x

Restricted Real Estate Loans and Secured Borrowings
Period-end loans ($ millions) (h)	$	431		$	464		$	505		$	641		$	666			(7	)%		(35	)%

30+ Delinq. % (a)		2.35	%		2.74	%		2.71	%		3.15	%		2.98	%
NPL %		1.51			1.27			1.80			1.04			0.87
Charge-offs % (qtr. annualized) (i)		9.73			3.15			2.52			3.63			4.46

Allowance / loans %		3.54	%		4.37	%		5.04	%		4.97	%		4.86	%
Allowance / charge-offs (i)		0.35	x		1.34	x		1.62	x		1.34	x		1.07	x

*	Amount is less than one percent

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

(b)	1Q12 includes recoveries of $4.8 million; 4Q11 includes a $20.6 million charge-off associated with one bank-related relationship (TRUP and bank holding company loan).

(c)	The decline is primarily driven by a large relationship that was upgraded to accrual status in 3Q12.

(d)	3Q12 includes $15.5 million nonperforming loans associated with implementation of the recently issued regulatory guidance.

(e)	3Q12 includes $31.7 million of the charge-offs associated with implementation of recently issued regulatory guidance.

(f)	3Q12 increase relates to exercise of cleanup calls.

(g)	3Q11 includes $40.2 million of NCO recognized due to sale of nonperforming mortgages.

(h)	3Q12 includes $417.0 million of consumer real estate loans and $14.2 million of permanent mortgage loans.

(i)	3Q12 includes $6.2 million charge-offs associated with implementation of the recently issued regulatory guidance.

FHN ASSET QUALITY: REGIONAL BANKING

Quarterly, Unaudited


																3Q12 Changes vs.
	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11
Total Regional Banking
Period-end loans ($ millions)	$	12,462		$	11,962		$	11,582		$	11,804		$	11,424			4	%		9	%

30+ Delinq. % (a)		0.45	%		0.51	%		0.59	%		0.41	%		0.61	%
NPL %		1.22			1.49			1.66			1.69			2.10
Charge-offs % (qtr. annualized)		0.55			0.51			0.50			1.10			0.86

Allowance / loans %		1.14	%		1.30	%		1.43	%		1.59	%		2.03	%
Allowance / charge-offs		2.11	x		2.61	x		2.90	x		1.49	x		2.47	x

Key Portfolio Details C&I
Period-end loans ($ millions)	$	7,929		$	7,441		$	7,160		$	7,465		$	7,139			7	%		11	%

30+ Delinq. % (a)		0.32	%		0.31	%		0.41	%		0.16	%		0.45	%
NPL %		0.97			1.11			1.12			1.18			1.62
Charge-offs % (qtr. annualized) (b)		0.29			0.45			0.09			1.26			0.73

Allowance / loans %		1.05	%		1.14	%		1.29	%		1.36	%		1.95	%
Allowance / charge-offs (b)		3.71	x		2.64	x		14.78	x		1.12	x		2.89	x

Income CRE
Period-end loans ($ millions)	$	1,141		$	1,183		$	1,204		$	1,208		$	1,235			(4	)%		(8	)%

30+ Delinq. % (a)		0.21	%		0.55	%		0.76	%		0.43	%		0.63	%
NPL %		3.78			4.34			5.28			5.08			5.75
Charge-offs % (qtr. annualized)		0.83			0.53			1.88			0.40			1.17

Allowance / loans %		1.81	%		2.14	%		2.42	%		2.95	%		3.49	%
Allowance / charge-offs		2.12	x		3.99	x		1.28	x		7.08	x		2.96	x

Residential CRE
Period-end loans ($ millions)	$	61		$	79		$	86		$	93		$	103			(23	)%		(41	)%

30+ Delinq. % (a)		1.34	%		7.53	%		1.22	%		0.40	%		0.56	%
NPL % (c)		19.08			40.77			41.83			40.28			36.74
Charge-offs % (qtr. annualized)		5.07			2.26			6.64			7.38			4.91

Allowance / loans % (c)		7.32	%		14.72	%		14.07	%		14.33	%		14.27	%
Allowance / charge-offs		1.26	x		6.24	x		2.01	x		1.82	x		2.56	x

Consumer Real Estate
Period-end loans ($ millions)	$	3,047		$	2,981		$	2,861		$	2,757		$	2,654			2	%		15	%

30+ Delinq. % (a)		0.75	%		0.76	%		0.86	%		1.00	%		0.97	%
NPL % (e)		0.63			0.39			0.45			0.44			0.56
Charge-offs % (qtr. annualized) (f)		0.78			0.38			0.56			0.54			0.60

Allowance / loans %		0.91	%		0.94	%		0.92	%		1.13	%		1.07	%
Allowance / charge-offs (f)		1.18	x		2.48	x		1.66	x		2.13	x		1.81	x

Credit Card, Permanent Mortgage, and Other
Period-end loans ($ millions)	$	284		$	278		$	271		$	281		$	293			2	%		(3	)%

30+ Delinq. % (a)		1.40	%		1.32	%		1.40	%		1.30	%		1.19	%
NPL %		0.37			0.15			0.03			0.02			0.03
Charge-offs % (qtr. annualized)		2.92			2.99			2.38			3.08			3.52

Allowance / loans %		2.13	%		2.26	%		2.20	%		2.27	%		2.40	%
Allowance / charge-offs		0.75	x		0.76	x		0.91	x		0.73	x		0.70	x


ASSET QUALITY: CORPORATE

Permanent Mortgage
Period-end loans ($ millions) (d)	$	201		$	119		$	127		$	141		$	161			69	%		25	%

30+ Delinq. % (a)		2.12	%		0.49	%		1.33	%		0.67	%		0.73	%
NPL % (e)		1.21			0.17			0.16			0.15			0.13
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

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

(b)	1Q12 includes recoveries of $4.6 million; 4Q11 includes an $11.7 million charge-off associated with one bank holding company loan.

(c)	The decline is primarily driven by a large relationship that was upgraded to accrual status in 3Q12.

(d)	3Q12 increase relates to exercise of cleanup calls.

(e)	3Q12 increase is associated with implementation of the recently issued regulatory guidance.

(f)	3Q12 includes $2.4 million of the charge-offs associated with implementation of recently issued regulatory guidance.

FHN ASSET QUALITY: NON-STRATEGIC

Quarterly, Unaudited


																3Q12 Changes vs.
	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11
Total Non-Strategic
Period-end loans ($ millions)	$	3,861		$	4,105		$	4,262		$	4,452		$	4,656			(6	)%		(17	)%

30+ Delinq. % (a)		2.06	%		1.72	%		1.89	%		2.53	%		2.90	%
NPL %		3.90			3.64			3.72			3.48			3.73
Charge-offs % (qtr. annualized)		6.19			2.41			2.95			3.78			6.69

Allowance / loans %		3.62	%		4.02	%		4.22	%		4.41	%		4.67	%
Allowance / charge-offs		0.56x			1.64x			1.39x			1.14x			0.66x

Key Portfolio Details
C&I
Period-end loans ($ millions)	$	537		$	541		$	546		$	549		$	567			(1	)%		(5	)%

30+ Delinq. % (a)		*			—	%		0.12	%		—	%		0.18	%
NPL %		13.65			13.77			13.58			13.50			14.93
Charge-offs % (qtr. annualized)		NM			*			NM			6.15			0.37

Allowance / loans %		4.37	%		4.78	%		4.94	%		5.29	%		7.66	%
Allowance / charge-offs		NM			NM			NM			0.84x			20.42x

Income CRE
Period-end loans ($ millions)	$	20		$	42		$	43		$	49		$	52			(52	)%		(62	)%

30+ Delinq. % (a)		—	%		—	%		—	%		8.84	%		21.51	%
NPL %		18.84			14.07			14.45			15.93			18.80
Charge-offs % (qtr. annualized)		NM			0.30			15.96			1.29			6.29

Allowance / loans %		9.64	%		9.51	%		9.00	%		8.08	%		7.82	%
Allowance / charge-offs		NM			31.70x			0.50x			6.09x			1.09x

Residential CRE
Period-end loans ($ millions)	$	8		$	10		$	13		$	28		$	38			(20	)%		(79	)%

30+ Delinq. % (a)		0.07	%		—	%		—	%		1.79	%		0.76	%
NPL %		65.97			65.64			56.20			29.77			44.39
Charge-offs % (qtr. annualized)		NM			30.43			1.59			1.70			15.10

Allowance / loans %		4.58	%		5.40	%		6.96	%		9.40	%		8.33	%
Allowance / charge-offs		NM			0.15x			2.82x			4.65x			0.41x

Consumer Real Estate
Period-end loans ($ millions)	$	2,272		$	2,427		$	2,531		$	2,535		$	2,651			(6	)%		(14	)%

30+ Delinq. % (a)		2.26	%		1.95	%		2.06	%		2.46	%		2.26	%
NPL % (d)		1.33			0.96			1.04			0.92			1.05
Charge-offs % (qtr. annualized) (e)		8.30			2.81			3.60			3.21			3.44

Allowance / loans %		3.23	%		3.56	%		3.77	%		4.27	%		4.02	%
Allowance / charge-offs (e)		0.37x			1.24x			1.06x			1.30x			1.14x

Permanent Mortgage
Period-end loans ($ millions)	$	574		$	602		$	604		$	628		$	657			(5	)%		(13	)%

30+ Delinq. % (a)		3.05	%		1.61	%		2.25	%		3.95	%		6.35	%
NPL % (f)		5.20			5.28			5.51			5.17			3.61
Charge-offs % (qtr. annualized) (b) (g)		1.46			1.67			2.59			3.46			23.31

Allowance / loans %		4.32	%		4.56	%		4.45	%		3.17	%		3.94	%
Allowance / charge-offs (g)		2.89x			2.68x			1.67x			0.90x			0.14x

Other Consumer
Period-end loans ($ millions)	$	19		$	19		$	21		$	22		$	25			*			(24	)%

30+ Delinq. % (a)		3.59	%		3.52	%		3.04	%		2.85	%		4.32	%
NPL %		9.41			9.32			10.39			9.83			20.12
Charge-offs % (qtr. annualized)		6.92			11.66			NM			30.70			19.63

Allowance / loans %		2.37	%		2.13	%		2.68	%		3.98	%		6.98	%
Allowance / charge-offs		0.35x			0.18x			NM			0.12x			0.33x

Restricted Real Estate Loans and Secured Borrowings
Period-end loans ($ millions) (c)	$	431		$	464		$	505		$	641		$	666			(7	)%		(35	)%

30+ Delinq. % (a)		2.35	%		2.74	%		2.71	%		3.15	%		2.98	%
NPL %		1.51			1.27			1.80			1.04			0.87
Charge-offs % (qtr. annualized) (h)		9.73			3.15			2.52			3.63			4.46

Allowance / loans %		3.54	%		4.37	%		5.04	%		4.97	%		4.86	%
Allowance / charge-offs (h)		0.35x			1.34x			1.62x			1.34x			1.07x

NM - Not meaningful

*	Amount is less than one percent

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

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

(c)	3Q12 includes $417.0 million of consumer real estate loans and $14.2 million of permanent mortgage loans.

(d)	3Q12 includes $7.9 million nonperforming loans associated with implementation of the recently issued regulatory guidance.

(e)	3Q12 includes $29.3 million of the charge-offs associated with implementation of recently issued regulatory guidance.

(f)	3Q12 includes $7.0 million nonperforming loans associated with implementation of the recently issued regulatory guidance.

(g)	3Q12 includes $2.1 million of the charge-offs associated with implementation of recently issued regulatory guidance.

(h)	3Q12 includes $6.2 million of the charge-offs associated with implementation of recently issued regulatory guidance.

FHN ROLLFORWARDS OF NONPERFORMING LOANS AND ORE INVENTORY

Unaudited


(Millions)	3Q12			2Q12			1Q12			4Q11			3Q11
NPL Rollforward (a)
Beginning NPLs	$	255		$	270		$	279		$	341		$	404
+ Additions		5			21			22			17			36
+ Principal increase		—			1			1			1			2
- Resolutions and payments		(18	)		(20	)		(19	)		(39	)		(54	)
- Net charge-offs		(8	)		(12	)		(10	)		(37	)		(22	)
- Transfer to ORE		(2	)		(1	)		(3	)		(3	)		(10	)
- Upgrade to accrual		(16	)		(4	)		—			(1	)		(15	)

Ending NPLs	$	216		$	255		$	270		$	279		$	341

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


(Millions)	3Q12			2Q12			1Q12			4Q11			3Q11
ORE Inventory Rollforward (a)
Beginning balance	$	48.9		$	59.1		$	68.9		$	80.1		$	78.8
Valuation adjustments		(2.7	)		(2.1	)		(3.1	)		(3.5	)		(4.3	)

Adjusted balance		46.2			57.0			65.8			76.6			74.5
+ New ORE		11.9			6.0			8.1			13.0			17.0
+ Capitalized expenses		0.2			0.2			0.2			0.2			0.5
Disposals:
- Single transactions		(7.7	)		(12.6	)		(13.7	)		(20.7	)		(10.2	)
- Bulk sales		—			(1.7	)		(1.3	)		(0.2	)		(1.7	)

Ending balance	$	50.6		$	48.9		$	59.1		$	68.9		$	80.1

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

(a)	ORE excludes foreclosed assets related to government insured mortgages.

COMMERCIAL LOANS: PORTFOLIO METRICS

Unaudited


C&I Portfolio: $8.5 Billion (51.2% of Total Loans)	% OS
General Corporate, Commercial, and Business Banking Loans		74	%
Loans to Mortgage Companies		19	%
Trust Preferred Loans		5	%
Bank Holding Company Loans		2	%

Income CRE Portfolio: $1.2 Billion (7.0% of Total Loans)


Top 10 States as of September 30, 2012	% NPL			% OS
Tennessee		3.20	%		59	%
North Carolina		9.61	%		7	%
Georgia		7.40	%		6	%
Florida		5.72	%		5	%
Mississippi		15.80	%		4	%
Alabama		—	%		3	%
West Virginia		—	%		3	%
South Carolina		—	%		3	%
Texas		3.85	%		2	%
Virginia		—	%		2	%

FHN CONSUMER LOANS: PORTFOLIO METRICS

Unaudited

Consumer Real Estate (primarily Home Equity) Portfolio: $5.7 Billion (34.7% of Total Loans) (a)


Origination LTV and FICO for Portfolio as of September 30, 2012	Loan-to-Value
(excludes whole loan insurance)	<=60%			60% - <=80%			80% - 90%			>90%
FICO score greater than or equal to 740		11	%		22	%		16	%		8	%
FICO score 720-739		2	%		4	%		4	%		2	%
FICO score 700-719		1	%		4	%		4	%		2	%
FICO score 660-699		2	%		5	%		3	%		3	%
FICO score 620-659		—	%		1	%		1	%		1	%
FICO score less than 620		—	%		1	%		—	%		2	%


Origination LTV and FICO for Portfolio - Regional Banking as of September 30, 2012	Loan-to-Value
(excludes whole loan insurance)	<=60%			60% - <=80%			80% - 90%			>90%
FICO score greater than or equal to 740		13	%		23	%		17	%		9	%
FICO score 720-739		1	%		4	%		3	%		2	%
FICO score 700-719		1	%		3	%		2	%		2	%
FICO score 660-699		2	%		4	%		3	%		3	%
FICO score 620-659		1	%		2	%		1	%		1	%
FICO score less than 620		1	%		1	%		1	%		1	%


Origination LTV and FICO for Portfolio - Non-Strategic as of September 30, 2012	Loan-to-Value
(excludes whole loan insurance)	<=60%			60% - <=80%			80% - 90%			>90%
FICO score greater than or equal to 740		8	%		21	%		14	%		6	%
FICO score 720-739		2	%		5	%		5	%		2	%
FICO score 700-719		2	%		5	%		5	%		3	%
FICO score 660-699		2	%		5	%		4	%		4	%
FICO score 620-659		—	%		1	%		1	%		2	%
FICO score less than 620		—	%		—	%		—	%		2	%

Consumer Real Estate Portfolio Detail:


				Origination Characteristics																	NCO’s % (d)
Vintage		Balance ($ B)		W/A Age (mo.)		CLTV			FICO			% Broker (b)			% TN			% 1st lien			QTD
	pre-2003	$	0.3		130		77	%		712			10	%		24	%		18	%		1.07	%
	2003	$	0.4		111		75	%		729			17	%		32	%		38	%		2.51	%
	2004	$	0.6		98		79	%		725			30	%		22	%		27	%		6.20	%
	2005	$	0.8		86		81	%		730			20	%		18	%		17	%		9.43	%
	2006	$	0.6		75		78	%		733			7	%		25	%		19	%		9.89	%
	2007	$	0.8		63		80	%		738			15	%		25	%		18	%		7.40	%
	2008	$	0.4		52		75	%		746			8	%		72	%		50	%		1.89	%
	2009	$	0.2		40		72	%		751			—	%		87	%		59	%		—	%
	2010	$	0.3		26		80	%		750			—	%		91	%		73	%		0.59	%
	2011	$	0.6		14		77	%		760			—	%		90	%		86	%		—	%
	2012	$	0.7		5		76	%		764			—	%		89	%		91	%		0.01	%
	Total	$	5.7		61		78	%		741	(c)		11	%		48	%		42	%		4.54	%

(a)	For purposes of this disclosure, consumer real estate portfolio includes $417.0 million of restricted real estate loans and secured borrowings.

(b)	Correspondent and Wholesale.

(c)	741 average portfolio origination FICO; 732 weighted average portfolio FICO (refreshed).

(d)	NCO % affected by implementation of recently issued regulatory guidance.

Permanent Mortgage Portfolio: $0.8 Billion (4.9% of Total Loans) (a)(b)(c)


	Loan-to-Value
	<= 60%			60% - <=80%			80% - 90%			>90%
Origination LTV for Portfolio as of September 30, 2012:		19	%		71	%		5	%		5	%


Top 10 States as of September 30, 2012:	Del. %			% OS
California		0.69	%		24	%
Texas		5.13	%		9	%
Washington		6.80	%		8	%
Virginia		1.49	%		6	%
Maryland		0.73	%		5	%
Arizona		2.33	%		4	%
North Carolina		9.36	%		4	%
Oregon		16.62	%		4	%
Tennessee		4.13	%		3	%
Florida		13.06	%		3	%

(a)	For purposes of this disclosure, permanent mortgage portfolio includes $14.2 million of restricted real estate loans.

(b)	Documentation type: 72% full doc; 24% stated; 4% other.

(c)	Product type: 71% jumbo; 12% Alt A; 17% other.

FHN NON-GAAP TO GAAP RECONCILIATION

Quarterly, Unaudited


(Thousands)	3Q12			2Q12			1Q12			4Q11			3Q11
Tangible Common Equity (Non-GAAP)
(A) Total equity (GAAP)	$	2,531,888		$	2,514,406		$	2,674,173		$	2,684,637		$	2,743,230
Less: Noncontrolling interest (a)		295,165			295,165			295,165			295,165			295,165

(B) Total common equity	$	2,236,723		$	2,219,241		$	2,379,008		$	2,389,472		$	2,448,065
Less: Intangible assets (GAAP) (b)		157,921			158,901			159,880			159,902			160,902

(C) Tangible common equity (Non-GAAP)	$	2,078,802		$	2,060,340		$	2,219,128		$	2,229,570		$	2,287,163
Less: Unrealized gains on AFS securities, net of tax		63,923			63,679			67,077			67,069			79,358

(D) Adjusted tangible common equity (Non-GAAP) (c)	$	2,014,879		$	1,996,661		$	2,152,051		$	2,162,501		$	2,207,805

Tangible Assets (Non-GAAP)
(E) Total assets (GAAP)	$	25,739,830		$	25,492,955		$	25,678,969		$	24,789,384		$	25,571,469
Less: Intangible assets (GAAP) (b)		157,921			158,901			159,880			159,902			160,902

(F) Tangible assets (Non-GAAP)	$	25,581,909		$	25,334,054		$	25,519,089		$	24,629,482		$	25,410,567

Period-end Shares Outstanding
(G) Period-end shares outstanding		247,134			248,810			252,667			257,468			263,619

Tier 1 Common (Non-GAAP)
(H) Tier 1 capital (d)(e)	$	2,641,392		$	2,626,688		$	2,841,064		$	2,850,452		$	2,875,113
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)	$	2,146,576		$	2,131,872		$	2,346,248		$	2,355,636		$	2,380,297

Risk Weighted Assets
(J) Risk weighted assets (d)(e)	$	20,095,037		$	20,022,430		$	19,783,405		$	20,026,412		$	19,910,843

Ratios
(C)/(F) Tangible common equity to tangible assets (“TCE/TA”) (Non-GAAP)		8.13	%		8.13	%		8.70	%		9.05	%		9.00	%
(A)/(E) Total equity to total assets (GAAP)		9.84	%		9.86	%		10.41	%		10.83	%		10.73	%
(C)/(G) Tangible book value per common share (Non-GAAP)	$	8.41		$	8.28		$	8.78		$	8.66		$	8.68
(B)/(G) Book value per common share (GAAP)	$	9.05		$	8.92		$	9.42		$	9.28		$	9.29
(I)/(J) Tier 1 common ratio (Non-GAAP) (d)		10.68	%		10.65	%		11.86	%		11.76	%		11.95	%
(H)/(E) Tier 1 capital to total assets (GAAP) (d)		10.26	%		10.30	%		11.06	%		11.50	%		11.24	%
(D)/(J) Adjusted tangible common equity to risk weighted assets (Non-GAAP)
(“TCE/RWA”) (c)(d)		10.03	%		9.97	%		10.88	%		10.80	%		11.09	%

Net interest income adjusted for impact of fully taxable equivalent (“FTE”) (Non-GAAP)
Regional Banking
Net interest income (GAAP)	$	150,352		$	147,826		$	146,681		$	150,199		$	140,658
FTE adjustment		1,555			1,580			1,493			1,510			1,434

Net interest income adjusted for impact of FTE (Non-GAAP)	$	151,907		$	149,406		$	148,174		$	151,709		$	142,092

Capital Markets
Net interest income (GAAP)	$	4,759		$	5,613		$	5,684		$	5,527		$	5,552
FTE adjustment		175			160			140			106			81

Net interest income adjusted for impact of FTE (Non-GAAP)	$	4,934		$	5,773		$	5,824		$	5,633		$	5,633

Corporate
Net interest income (GAAP)	$	(5,294	)	$	(4,732	)	$	(5,334	)	$	(4,366	)	$	(1,080	)
FTE adjustment		22			16			26			34			40

Net interest income adjusted for impact of FTE (Non-GAAP)	$	(5,272	)	$	(4,716	)	$	(5,308	)	$	(4,332	)	$	(1,040	)

Non-Strategic
Net interest income (GAAP)	$	23,648		$	23,968		$	24,898		$	27,517		$	31,210
FTE adjustment		—			—			—			—			—

Net interest income adjusted for impact of FTE (Non-GAAP)	$	23,648		$	23,968		$	24,898		$	27,517		$	31,210

Total Consolidated
Net interest income (GAAP)	$	173,465		$	172,675		$	171,929		$	178,877		$	176,340
FTE adjustment		1,752			1,756			1,659			1,650			1,555

Net interest income adjusted for impact of FTE (Non-GAAP)	$	175,217		$	174,431		$	173,588		$	180,527		$	177,895

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.

FHN GLOSSARY OF TERMS

Adjusted Tangible Equity/RWA: Common shareholders’ equity excluding intangible assets and unrealized gains/losses on available-for-sale securities 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.

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 Real Estate Loans and Secured Borrowings: Restricted loans are 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. Line item also includes loans from nonconsolidated variable interest entities that did not qualify for sale treatment. Such loans secure borrowings that are classified as term borrowings.

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 / 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.

First Horizon National Corporation

Third Quarter 2012 Earnings

October 19, 2012

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

reconciliation of that non-GAAP information to comparable GAAP information is provided in a footnote or in 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 in more detail in the most current 10-Q and 10-K. 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.

Successful Execution:

3Q12 Accomplishments

Optimize

Business Mix for

Profitability &

Returns

Improve

Productivity

& Efficiency

Mortgage repurchase provision of $0

Existing

reserve,

which

includes

the

2Q12

addition

$250mm,

still

expected

cover

losses

from

Fannie

and

Freddie

from

pending

and

projected

repurchase

requests

Executing $189mm of cost saves in Core Businesses³

Consolidated expenses down 18%

Regional Banking revenue per FTE of $69k, up 8% from $64k

Tier 1 ratio at 13.1%

Tier 1 Common at 10.7%

TCE/TA at 8.1%

Repurchased $140mm of common stock since October 2011

16.7 million shares at a volume weighted average price of $8.38 per share

Net income available to common of $26mm and diluted EPS of $0.10

Provision of $40mm includes $30mm of incremental loan loss provision related to

recently

issued

regulatory

guidance

with

after

tax

EPS

impact

$0.07

Regional Banking pre-tax pre-provision net revenue at $73mm, up 2%

Regional Banking average loans up 12% and average core deposits up 9%

Grew deposits by 1.7% vs the market rate of 1.4%

Middle Tennessee deposits grew over 6x the market rate

Capital Markets fixed income average daily revenues at $1.2mm

Non-Strategic average loans decreased 18%

Net charge-offs declined 25%; 3Q12 includes $40mm of charge-offs related to recently

issued regulatory guidance

Nonperforming assets down 23%

Deploy Capital

In Disciplined

Manner

All data is 3Q12 compared to 3Q11 unless otherwise noted. ¹Pre-tax pre-provision net revenue and EPS impact are non-GAAP numbers,

and a reconciliation is provided on slide 7 and in the appendix, respectively. ²FDIC data as of 6/30/12. ³Core Businesses include Regional Banking, Capital Markets, and Corporate segments.

Tier 1 and Tier 1 Common: current quarter is estimate; Tier 1 Common and TCE, & TA are non-GAAP numbers, and a reconciliation is provided in the appendix.

Does not include $0.03 broker commission paid.

FINANCIAL RESULTS

Consolidated Financial Results

Core Businesses’

pre-tax income at $70mm, up 10%¹

Net income available to common shareholders of

$26mm, with diluted EPS of $0.10

Total revenues at $337mm, increased 3% excluding

securities gains

Regional Banking revenues up 1% from higher NII

Capital Markets revenues up 6% from increased

fixed income sales

Total noninterest expense down 18% year over year

Total provision at $40mm

$30mm of incremental loan loss provisioning

associated with charging down discharged

bankruptcies to estimated collateral value²

Net charge-offs at $79mm, $40mm related to

incremental charge-offs associated with

bankruptcies²

After tax EPS impact of $0.07²

Total average loans at $16.4B, up 3%

Regional Banking total average loans up 5%

Non-Strategic total average loans down 4%

Net interest margin at 3.15%, down 1bp

Linked Quarter Comparison

2Q12

3Q11

Income Statement

($ in millions)

Net interest income

$173

$176

(2)%

Noninterest income

$164

$154

$186

(12)%

Securities gains/(losses), net

$35

Total revenue

$337

$332

$397

(15)%

Noninterest expense

$263

$527

$323

(50)%

(18)%

Pre-tax, pre-provision

net revenue

$74

($196)

$75

(1)%

Provision

$40

$15

$32

25%

Pre-tax income / (loss)

$34

($211)

$43

(20)%

Taxes

($88)

(37)%

Continuing operations

$29

($122)

$34

(16)%

Net income / (loss)

$29

($122)

$39

(26)%

Net income / (loss) available

to common shareholders

$26

($125)

$36

(29)%

Common Stock Data

Diluted shares

(in millions)

248

249

263

(0)%

(6)%

Diluted EPS from

continuing ops

$0.10

($0.50)

$0.12

(17)%

Diluted EPS

$0.10

($0.50)

$0.14

(29)%

Balance Sheet

($ in billions)

Total average loans

$16.4

$16.0

Total average deposits

$15.8

$16.3

$15.7

(3)%

NIM

3.15%

3.16%

3.23%

2Q12

3Q11

3Q12

3Q12 vs

Significant Items Negatively Impacting 3Q12 EPS

Significant Item

After

Tax

EPS

Impact

Incremental loan loss provisioning associated with

charging down discharged bankruptcies to

estimated collateral value¹

$(30.0)mm

Pre-Tax Amount

$(0.07)

Incremental provision related to recently issued guidance.

After tax EPS impact is non-GAAP and a reconciliation is provided in the appendix.

Loss related to litigation settlement

$(6.6)mm

$(0.02)

Net impact from restructuring, repositioning and

efficiency initiatives

$(2.6)mm

$(0.01)

Strength in Core Businesses:

Regional Banking

Pre-tax pre-provision net revenue up 5% to $73mm

Total revenues up 1%

Net interest income up 2% from higher loan

balances

Fee income down 1% due to a decline in trust

services and investment management and bank

card income

Deposit transaction fees up 1% due to an increase

in NSF/OD fees

Expenses down 1% from a decrease in compensation

costs

Total average loans up 5%

Commercial loans up 6%

Consumer loans up 3%

Linked Quarter Comparison

Numbers may not add to total due to rounding.

All data is 3Q12 compared to 2Q12 unless otherwise noted.

Pre-tax pre-provision net revenue is a non-GAAP number and is reconciled to pre-tax income in the table.

ROA, NIM, and NCO / Average Loans are annualized.

2Q12

3Q11

Income

Statement

millions)

Net interest income

$150

$148

$141

NSF/overdraft fees

$13

$12

$14

(8)%

Cash mgmt fees

(3)%

Debit card income

(4)%

(61)%

Other

$39

$41

$38

(3)%

Noninterest income

$64

$65

$68

(1)%

(6)%

Total revenues

$214

$213

$209

Noninterest expense

$141

$143

$137

(1)%

Pre-tax pre-provision

net revenue

$73

$70

$72

Loan loss provision

($23)

(11)%

Pre-tax income

$69

$65

$94

(27)%

Taxes

$25

$23

$35

(28)%

Net income

$44

$42

$59

(26)%

Balance

Sheet

billions)

Total average loans

$12.2

$11.7

$10.9

12%

Total average deposits

$14.9

$15.1

$13.6

(1)%

10%

Loan yield

3.88%

3.91%

3.98%

Deposit rate

0.34%

0.36%

0.48%

Bonefish Ratios

ROA

1.4%

2.1%

NIM

4.92%

5.13%

5.15%

NCOs / average loans

0.55%

0.51%

0.86%

Fee income / revenue

30%

33%

Efficiency ratio

66%

67%

66%

Regional Banking

3Q12

2Q12

3Q11

3Q12 vs

Significant focus to enhance profitability of balance

sheet, with spread up 4bps year-over-year and

relatively stable linked quarter

Loan pipeline remains solid

Areas of demand include loans to mortgage companies,

asset-based lending, CRE and consumer installment

loans

Competitive conditions on pricing and structure are

challenging

Pricing credit for attractive returns on capital

Strength in Core Businesses:

Regional Banking Balance Sheet

Regional Banking Yields and Rates

Numbers/percentages may not add due to rounding.

Spread is loan yield minus deposit rate.

Regional Banking Commercial Loan

Pipeline & Fundings

Regional Banking Total Average Loans & Deposits

Strength in Core Businesses:

Capital Markets

Pre-tax income up 7%

Total revenues up 6%

Fixed income ADR of $1.2mm vs $1.1mm

Solid 3Q12 performance within normalized range

of expectations

Revenues being driven more heavily by depository

customers vs non-depositories

Non-depository demand is somewhat muted due

to low interest rate levels

Expenses up 6% due to higher variable compensation

from increased revenues

Linked Quarter Comparison

Numbers may not add to total due to rounding.

All data is 3Q12 compared to 2Q12 unless otherwise noted.

ROA is annualized.

2Q12

3Q11

Income Statement

Net interest income

(15)%

(14)%

Noninterest income

$81

$75

$100

(19)%

Total revenues

$86

$81

$105

(19)%

Noninterest expense

$65

$61

$77

(16)%

Pre-tax income

$21

$20

$28

(25)%

Taxes

$11

(26)%

Net income

$13

$12

$17

(24)%

Fixed income

average daily revenue

$1.2

$1.1

$1.4

(19)%

Bonefish Ratios

ROA

2.3%

2.1%

2.9%

Efficiency ratio

75%

76%

73%

Capital Markets

3Q12

2Q12

3Q11

3Q12 vs

($ in millions)

Improving Productivity and Efficiency,

Expect Lower Environmental Costs

Targeting

~$1B

annualized

level

consolidated

expenses

the

end

2012,

a 25-30% or ~$350mm reduction from the 2010 level

Total Noninterest Expense

$350mm

Numbers/percentages may not add due to rounding.

18%

$139mm of identified cost savings in 2012, in addition to expected reduction in future Non-Strategic expenses

over the long-term

Now

targeting

additional

$50mm

efficiencies

executed

year-end

2013

Of the $139mm, $130mm annualized impact in 3Q12 run rate; remainder expected to be largely completed by the

end of 2012

Near-term offsets from technology investments and pension related expenses

$323

$263

$150

$200

$250

$300

3Q11

3Q12

Agency Mortgage Repurchase-Related Expenses

Mortgage Repurchase Reserve

($ in millions)

Beginning Balance

Net Realized Losses

Provision

Ending Balance

2Q12

$161

$(51)

$250

$360

3Q12

$360

$(68)

$292

3Q11

$169

$(53)

$53

$169

4Q11

$169

$(49)

$45

$165

1Q12

$165

$(53)

$49

$161

Realized Losses through 3Q12

Remaining Reserve at 9/30/12

Cumulative Total Losses plus Reserve

3Q12 Provision

Total GSE Loans Sold 2005-08

Aggregate Expected Loss Ratio

~$458mm

$292mm

~$750mm

$0mm

$57.6B

1.3%

GSE Loans Sold

Pipeline of requests at $446mm in 3Q12 up due to

continued backlog of requests from GSEs

Total

Pipeline

Repurchase

Requests¹

3Q12 mortgage repurchase provision expense of $0

Received update in September from Fannie and still

expect future repurchase provision to be immaterial

Cumulative average rescission rate of 45-55%

Average loss severity of 50-60%

Sold mortgage origination platform in August 2008

Data as of 3Q12. Numbers may not add due to rounding.

Based

UPB.

The

pipeline

represents

active

investor

claims

and

mortgage

insurance

(MI)

cancellations

under

review,

both

which

could

occur

the

same

loan.

Excludes

cancellation

notes

that

have

been

reviewed

and

coverage

has

been

lost.

cancellations

that

are

resulted

lost

coverage

included

management’s

assessment

the

adequacy

repurchase

reserves.

Net Charge-Offs (NCOs)

Reserve Decrease

Successful Execution:

Asset Quality Trends Continue to Improve

Net charge-offs at $79mm, $40mm related to incremental charge-offs associated with bankruptcies.

NCOs down 25% from 3Q11

Regional Banking NCOs down $7mm year over year, with $2mm of 3Q12 NCOs related to the recently issued

regulatory guidance

Non-Strategic NCOs down $20mm vs 3Q11, with $38mm of 3Q12 NCOs related to the recently issued regulatory

guidance

Reserves for loan losses decreased $39mm linked quarter to $282mm or 1.71% of period end loans

Reserves and Net Charge-Offs

Numbers may not add due to rounding.

Data as of 3Q12, unless otherwise noted.

3Q11 had $48mm of charge-offs related to loan sales. 3Q12 has $40mm of charge-offs related to bankruptcies per recently issued guidance.

$150mm

Incremental

$40

$48

$58

$75

$46

$40

$39

$(74)

$(65)

$(38)

$(25)

$(39)

0.0%

1.0%

2.0%

3.0%

4.0%

-$100

-$50

$50

$100

3Q11

4Q11

1Q12

2Q12

3Q12

Reserve % of Loans (right axis)

2.77%

2.34%

2.17%

1.98%

1.71%

Net Charge-Off Impact from Recently Issued Guidance

Portfolio Loan Characteristics

of Affected Consumer Loans¹

Total Net Charge-Offs and Provision

Home equity includes HELOC & IL. Excludes loans HFS.

Home

Equity

Perm

Mortgage

Total

UPB

$60mm

$12mm

$72mm

% Current &

<60 Day Delinquent

91%

100%

93%

% >60 Day Delinquent

Charge-offs

$38mm

$2mm

$40mm

Recently issued regulatory guidance requiring banks to charge off current and early stage delinquency post-Chapter

7 bankruptcy consumer loans to the value of the underlying collateral

$72mm of UPB of consumer loans affected

80% of unpaid balances are currently performing loans

Expect recoveries in future quarters given level of currently performing loans that were charged down

60% of customers who have been in bankruptcy for more than 2 years have made at least 24 months of

consecutive payments

$30mm of incremental provision

$40mm of incremental charge-offs

$33mm of the $40mm of charge-offs are related to current loans

($ in millions)

1Q12

2Q12

3Q12

Beginning ORE

$69

$59

$49

Valuation Adjustments

($3)

($2)

($3)

Adjusted Balance

$66

$57

$46

+ New ORE

$12

+ Capitalized Expenses

- Dispositions:

($15)

($14)

($8)

Single Transactions

($14)

($13)

($8)

Bulk Sales

($1)

Ending ORE

$59

$49

$51

($ in millions)

1Q12

2Q12

3Q12

Beginning NPLs

$279

$270

$255

+ Additions

$22

$21

+ Principal Increase

- Resolutions/Payments

($19)

($20)

($18)

- Net Charge-Offs

($10)

($12)

($8)

- Transfer to ORE

($3)

($1)

($2)

- Upgrade to Accrual

($4)

($16)

Ending NPLs

$270

$255

$216

Successful Execution:

Non-Performing Assets Decline

Non-Performing Assets

NPAs down $16mm or 4% linked quarter and down 23%

or $132mm year over year to $450mm

$31mm of 3Q12 NPAs were related to the recently

issued regulatory guidance

NPA % at 2.15% in 3Q12 vs 3.02% in 3Q11

NPL levels down 4% linked quarter and down 20% year

over year

Commercial NPLs declined 15% linked quarter and

down 36% year over year

NPL % at 1.85% vs 2.55% in 3Q11

Commercial NPL inflows decreased while upgrades to

accrual and resolutions/payments increased

NPL Activity from Commercial and OTC

ORE Activity¹

Numbers may not add due to rounding.

ORE excludes foreclosed real estate from government insured loans.

Building Long-Term Earnings Power:

FHNC Bonefish –

Long-Term Targets

3Q12 Consolidated

3Q12 Core¹

Long-Term Targets

ROTCE²

4.94%

11.79%

15 -

20%

ROA²

0.45%

1.00%

1.25 -

1.45%

NIM²

3.15%

3.40%

3.50 -

4.00%

Tier 1 Common³

10.7%

8.0 –

9.0%

NCO / Average Loans²

1.92%

0.54%

0.30 -

0.70%

Fee Income / Revenue

49%

51%

40 -

50%

Efficiency Ratio

78%

75%

60 -

65%

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

ROTCE, ROA, NIM, and NCO / Average Loans are annualized. ROTCE is a non-GAAP number, and a reconciliation is provided in the appendix.

Tier 1 Common: current quarter is an estimate and a non-GAAP number, and a reconciliation is provided in the appendix.

FHN Is Well Positioned For Long-Term Earnings Power

Building a Foundation for Long-Term Earnings Power

FHN is successfully executing on key priorities:

Controlling what we can control

Differentiated core businesses

Expense leverage from efficiency initiatives

Managing mortgage repurchase risk

Improving asset quality

Capital flexibility

APPENDIX

4.8%¹

5.5%

6.3%

1.0%

0.6%

1.0%

17.2%

2.5%

1.6%

2.7%

First Horizon Growing Deposits

Faster Than Overall Footprint Market

FDIC Deposit Market Share

Source: FDIC. Data as of June 30, 2012.

Numbers and percentages may not add to total due to rounding.

Market

FHN Market Share

2012 FHN Deposits

YOY Deposit Growth

2012

2011

FHN

Overall Market

Midsouth (West Tennessee)

$7.1B

31.8%

33.7%

East Tennessee

$2.9B

21.5%

21.6%

Middle Tennessee

$2.8B

7.6%

6.6%

Southeast Tennessee

$2.2B

25.2%

24.1%

Northeast Tennessee

$1.2B

23.5%

21.7%

Total FHN Footprint

$16.3B

18.7%

1.7%

1.4%

Excluding ~$700mm of planned reduction in excess wholesale funding, the Midsouth growth rate is +4.6%

Capital Management

Tier 1 Common of 10.7% currently under Basel I

Estimated NPR impact expected to be mostly offset by improvements and run-off, resulting in a theoretical Tier 1

Common of 11.0% under Basel III at year end 2014

Expected improvements include assumptions on retained earnings, run-off of non-strategic portfolios, balance sheet

positioning, and credit quality

Illustration of Potential Basel III Impacts on Tier 1 Common

10.7%

(2.5%)

1.8%

0.4%

0.3%

0.2%

0.1%

11.0%

7.5%

8.0%

8.5%

9.0%

9.5%

10.0%

10.5%

11.0%

11.5%

3Q12

Tier 1

Common

Estimated

Basel III

Impact

Retained

Net Income³

Reduce

Unfunded

Commitments

Non-Strategic

Run-Off

Other

NPA

Reduction

Theoretical

4Q14

Tier 1

Common

3Q12 Credit Quality Summary by Portfolio

Numbers may not add to total due to rounding.

Data as of 3Q12.

($ in millions)

Income

CRE

Residential

CRE

HE &

HELOC

Other

Total

Permanent

Mortgage

Commercial

(C&I & Other)

Income

CRE

Residential

CRE

HE &

HELOC

Permanent

Mortgage

Other

Total

Period End Loans

$7,929

$1,141

$61

$3,047

$284

$12,462

$201

$537

$20

$2,272

$574

$450

$16,524

30+ Delinquency

0.32%

0.21%

1.34%

0.75%

1.40%

0.45%

2.12%

0.00%

0.07%

2.26%

3.05%

2.40%

0.84%

Dollars

$26

$23

$56

$51

$18

$11

$139

NPL %

0.97%

3.78%

19.08%

0.63%

0.37%

1.22%

1.21%

13.65%

18.84%

65.97%

1.33%

5.20%

1.84%

1.85%

Dollars

$77

$43

$12

$19

$152

$73

$30

$306

Net Charge-offs

0.29%

0.83%

5.07%

0.78%

2.92%

0.55%

8.30%

1.46%

9.62%

1.92%

Dollars

$17

$49

$11

$79

Allowance

$83

$21

$28

$142

$23

$73

$25

$16

$282

Allowance / Loans %

1.05%

1.81%

7.32%

0.91%

2.13%

1.14%

4.37%

9.64%

4.58%

3.23%

4.32%

3.49%

1.71%

Allowance / Charge-offs

3.71x

2.12x

1.26x

1.18x

0.75x

2.11x

0.37x

2.89x

0.35x

0.89x

(1) Credit Card, Permanent Mortgage, and Other

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

(3) Net Charge-Offs are annualized

(NM) Not meaningful

(4) Exercised clean-up calls on jumbo securitizations in 3Q12, 2Q11 and 4Q10, which are now on balance sheet in the Corporate segment

Regional Banking

Non-Strategic

Corporate

Commercial

(C&I & Other)

C&I Portfolio

Consolidated C&I Portfolio

C&I Loan Composition

4Q11 charge-offs included $21mm charge-off from one

bank-related relationship

C&I: Period End Loans to Mortgage Companies

Data as of 3Q12.

Numbers may not add to total due to rounding.

TRUPs loan balance net of LOCOM of $34.2mm.

$8.5B portfolio, diversified by industry, managed

primarily in Regional Banking

Includes loans to mortgage companies (included

within correspondent banking) of $1.6B in 3Q12 vs

$1.3B in 2Q12

Net charge-offs down $3mm linked quarter

C&I consolidated reserves of 1.26% at 9/30/12

C&I Portfolio: TRUPs and Bank-Related Loans

3Q12

($ in millions)

TRUPs & Bank-Related Loans

Total C&I Portfolio

Period End Balances

$587

$8,466

Reserves

$58

$107

Reserve Coverage

9.95%

1.26%

NPL %

15.07%

1.78%

NCO %

0.61%

0.25%

TRUPS and Bank-Related Loan Coverage

$587mm balances in TRUPs and bank-related loans

$290mm whole-loan TRUPs to banks

$156mm whole-loan TRUPs to insurance companies

$141mm

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

Seven

TRUPs

totaling

$53mm

deferral

9/30/12,

down

from

ten

TRUPS

totaling

$75mm

deferral

6/30/12

Data as of 3Q12. Numbers may not add to total due to rounding.

The three TRUPs off deferral remain on nonaccrual status. Amounts exclude LOCOM.

Reserve coverage includes $34.2mm of LOCOM on TRUPs.

NCO percentages are annualized.

Income CRE Portfolio

Performance

Period end balances of $1.2B

98% 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 up $1mm linked quarter to $2mm

Reserves of 1.94% at 9/30/12

Continued improvement and stabilization

Loan Type

NPLs By Product Type²

Collateral Type

Numbers may not add to total due to rounding. Data as of 3Q12.

Net charge-offs are annualized.

NPLs as a percentage of each portfolio.

“Other”

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

Land

Other³

Office

Multi-Family

Retail

Industrial

Hospitality

27.6%

12.4%

4.2%

1.2%

1.1%

0.9%

0.0%

Home Equity: Performance and Characteristics

Portfolio Characteristics

Geographic Distribution

30+ Delinquency: Key Drivers

Data as of 3Q12.

Numbers and percentages may not add due to rounding.

All

charts

and

graphs

include

$417.0mm

restricted

and

secured

consumer

real

estate

loans.

FICO Score-Origination

Lien Position

Channel

56%

% of portfolio

13%

11%

13%

87%

13%

% of portfolio

42%

58%

% of portfolio

First

Second

Total

Balance

$2.5B

$3.2B

$5.7B

Original FICO

748

736

741

Refreshed FICO

745

722

731

Original CLTV

74%

81%

78%

Full Doc

87%

73%

79%

Owner Occupied

90%

92%

91%

HELOCs

$0.8B

$2.5B

$3.3B

Weighted Average

HELOC Utilization

50%

61%

59%

Core

Banking

Customers

47%

12%

Other

35%

0.93%

2.20%

2.37%

3.10%

5.57%

>=740

720-

739

700-

719

660-

699

<660

1.65%

3.21%

Retail

Wholesale

1.22%

2.31%

1st Lien

2nd Lien

Consumer Real Estate Portfolio

30+ Delinquency

Net Charge-Offs

Non-Strategic Portfolio Run-Off

Source: McDash industry data as of July 2012.

All

charts

and

graphs

include

$417.0mm

restricted

and

secured

consumer

real

estate

loans.

Industry¹

6.74%

$4B

$24

$66

$35

$31

$30

$75mm

Includes $38mm of charge-offs

related to recently issued guidance

on discharged bankruptcies

0.75%

2.26%

3Q11

4Q11

1Q12

2Q12

3Q12

Regional Banking

Non-Strategic

14%

15%

18%

15%

16%

10%

15%

20%

3Q11

4Q11

1Q12

2Q12

3Q12

PE Balance

Restricted and Secured Balances

Constant Pre-Payment Rate (Right Axis)

$25

$50

3Q11

4Q11

1Q12

2Q12

3Q12

Regional Banking

Non-Strategic

Restricted

Mortgage Repurchases:

Origination and Loan Characteristics

Agency and Pipeline

Agency Originations

~$70B of Agency originations from 2005 to 2008

Received ~$2.0B¹ of Agency-related repurchase

requests to date or 2.9% of originations

Represent 99.4% of all active repurchase/make whole

requests in pipeline at 9/30/12

Pipeline of requests at $446mm in 3Q12 up 3% from

$431mm in 2Q12

$391mm of Agency-related repurchase claims

$39mm of mortgage insurer-related cancellations

$2mm of non-Agency whole loan-related claims

$14mm of other non-repurchase requests

Requests include MI cancellation notices.

Agencies account for 99.4% of all actual repurchase/make-whole requests in the pipeline as of 3Q12 and 94.2% of the active pipeline inclusive of PMI cancellation notices and all other claims.

Other Whole Loan Sales/Non-Agency

Represent 0.6% of all active repurchase/make whole

requests in 3Q12 pipeline

Loans

were

bundled

with

other

companies’

loans

and

securitized by the purchasers

A trustee has commenced a legal action seeking

repurchase of FHN loans

Certain purchasers of FHN loans have requested

indemnity related to securitizations

Certain parties have initiated loan file reviews

New Agency Repurchase Requests by Vintage

Total Pipeline by Vintage²

Mortgage Repurchase-Related Expenses

Fannie

Freddie

Total GSE Loans Sold

Ginnie Loans Sold

Total Agency Loans Sold

Total Demands (Request Rate)

Resolved

Cumulative Average Rescission Rate

Average Loss Severity

Originations: 2005-2008

Amount

$39.6B

$18.0B

$57.6B

$11.9B

$69.5B

$2.0B / 2.9%

$1.6B

45 -

55%

50 -

60%

Numbers may not add due to rounding. Data as of 3Q12.

Based on UPB. The pipeline represents active investor claims and

mortgage insurance (MI) cancellations under review, both of which could occur on the same loan.

Excludes MI cancellation notices that have been reviewed and coverage has been lost.

MI cancellations that have resulted in lost coverage are included in management’s assessment of the adequacy of repurchase reserves. ²Requests reflect pipeline as of each respective quarter end.

First Horizon Branded Private Label Securitizations

From 2005-2007, FHN originated and securitized $27B

of private label mortgages; no securitizations after 2007

If any private label securitization (PLS) losses occur,

they should be significantly less than the GSE experience

More limited reps and warranties

Statutes of limitations do not apply to GSE

experience

First Horizon branded PLS should experience less loss

than the typical industry PLS

Strong relative performance vs the industry

No subprime

Smaller average securitizations size

Origination Mix

FHN

Industry¹

Securitization Performance²

Repurchase Risk Differs For Private Label vs GSEs

Most private label reps and warranties are not as

comprehensive as GSE whole-loan reps and warranties

More difficult for most non-agency investors to access

loan files

Generally requires a coordinated investor effort to

compel trustees to investigate and pursue repurchase

claims

Investor interests are not necessarily aligned

Trustee may initiate loan review and repurchase

process on its own

60 Day+ Delinquencies

Cumulative Loss

Outperforming Industry Cohort

Underperforming Industry Cohort

Average

Deal Size:

$342mm

$891mm

First Horizon Branded Private Mortgage Securitizations:

Risk Remains Manageable

Data source: LoanPerformance, CPRCDR, Intex, PolyPaths, Bloomberg with company analysis. FHN has not verified data accuracy. Excludes inactive deals. Data as of August 2012 with Sept. remits.

Includes

suits

where

FHN

defendant

well

certain

suits

where

FHN

has

not

been

sued

but

has

received

contractual

indemnity

claims

from

underwriter

defendants.

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

Supplemental private securitization data provided on FHN’s website at ir.fhnc.com.

99% of active FHN 2005-2007 securitization deals are

older than 5 years

The remaining deal will reach 5 years in age by

year end 2012

Nine

FHN

securitization-related

lawsuits

outstanding

No repurchase requests related to first lien FHN

securitizations

FHN

2005-2007

Securitizations

Industry

FHN Alt-A Securitizations

FHN Jumbo Securitizations

First Horizon Branded Private Mortgage Securitizations:

Delinquencies and Cumulative Losses

Jumbo 60+ Day Delinquencies

Alt-A 60+ Day Delinquencies

Jumbo Cumulative Losses

Alt-A Cumulative Losses

Numbers and percentages may not add to total due to rounding. Data as of August 2012 with September 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.

Supplemental private securitization data provided on FHN’s website at ir.fhnc.com.

13%

12%

Vintage Remaining Balance / Total 2005-2007 Current Jumbo and Alt-A Balances

34%

22%

10%

15%

11%

Vintage Original Balance / Total 2005-2007 Original Jumbo and Alt-A Balances

34%

23%

FHN

Industry¹

12%

18%

2005

2006

2007

14%

21%

28%

35%

2005

2006

2007

12%

16%

20%

2005

2006

2007

2005

2006

2007

FHFA Litigation Securitizations

FHFA Litigation Certificate Breakdown

Numbers and percentages may not add to total due to rounding. Data source: September 2012 Trustee Reports and the FHFA lawsuit filed on 9/2/11.

April

2007,

the

GSEs

purchased

the

remaining

$161mm

UPB

the

FHAMS

2005-AA12

IIA1

tranche,

reported

the

FHFA

lawsuit.

This

tranche

had

origination

balance

$213mm.

60D+ Delinquent defined as a delinquency status of 60 days or more and also bankruptcies, foreclosures and REO in such status for 60 days or more.

$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+

Delinquent

Cumulative

Loss

FHAMS 2005-AA9

IIA1

$214

$120

$85

$72

$13

FHAMS 2005-AA10

IA1

$140

$80

$55

$47

FHAMS 2005-AA11

IA1

$129

$69

$50

$44

$10

FHAMS 2005-AA12¹

IIA1

$161

$71

$78

$64

$13

$12

FHAMS 2006-AA1

IA1

$230

$136

$79

$65

$14

$16

FHFA Total

$874

$476

$346

$292

$54

$51

Paid Off 54%

Performing UPB 33%

60D+ Delinquent²

Cumulative Loss 6%

$0.0

$0.2

$0.4

$0.6

$0.8

Reconciliation to GAAP Financials

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

margin,

net

charge-offs,

fee

income,

revenue,

expense

various

ratios

using

one

those

measures.

That

information

not presented according to generally accepted accounting principles (GAAP) & is reconciled to GAAP information below.

($ in millions)

3Q12

2Q12

1Q12

4Q11

3Q11

Regional Banking

Net interest income (GAAP)

$150.4

$147.8

$146.7

$150.2

$140.7

FTE adjustment

$1.6

$1.5

$1.4

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

$151.9

$149.4

$148.2

$151.7

$142.1

Capital Markets

Net interest income (GAAP)

$4.8

$5.6

$5.7

$5.5

$5.6

FTE adjustment

$0.2

$0.1

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

$4.9

$5.8

$5.6

Corporate

Net interest income (GAAP)

($5.3)

($4.7)

($5.3)

($4.4)

($1.1)

FTE adjustment

$0.0

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

($5.3)

($4.7)

($5.3)

($4.3)

($1.0)

Non-Strategic

Net interest income (GAAP)

$23.6

$24.0

$24.9

$27.5

$31.2

FTE adjustment

$0.0

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

$23.6

$24.0

$24.9

$27.5

$31.2

Total Consolidated

Net interest income (GAAP)

$173.5

$172.7

$171.9

$178.9

$176.3

FTE adjustment

$1.8

$1.7

$1.6

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

$175.2

$174.4

$173.6

$180.5

$177.9

3Q12

Return

on Assets¹

Net Interest

Margin

Net Charge-Offs/

Average Loans¹

Fee Income /

Total Revenue

Efficiency

Ratio

Regional Banking (GAAP)

1.35%

4.92%

0.55%

30%

66%

Capital Markets (GAAP)

2.33%

1.12%

0.0%

94%

75%

Corporate (GAAP)

-0.45%

-0.54%

Core Businesses (Non-GAAP)

1.00%

3.40%

0.54%

50%

75%

Non-Strategic (GAAP)

-1.87%

2.15%

6.19%

31%

103%

Consolidated (GAAP)

0.45%

3.15%

1.92%

49%

78%

Numbers may not add to total due to rounding.

ROTCE, ROA and Net Charge-offs / Average loans are annualized.

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 or more of those measures. That information is 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.

Includes goodwill and other intangible assets, net of amortization.

Current quarter is an estimate.

($ in millions)

3Q12

2Q12

1Q12

4Q11

3Q11

Tangible Common Equity (Non-GAAP)

Total equity (GAAP)

$2,531.9

$2,514.4

$2,674.2

$2,684.6

$2,743.2

Less: noncontrolling interest

295.2

Total common equity

2,236.7

2,219.2

2,379.0

2,389.5

2,448.1

Less: intangible assets (GAAP)

157.9

158.9

159.9

160.9

Tangible common equity (Non-GAAP)

2,078.8

2,060.3

2,219.1

2,229.6

2,287.2

Less: unrealized gains on AFS securities, net of tax

63.9

63.7

67.1

79.4

Adjusted tangible common equity (Non-GAAP)

2,014.9

1,996.7

2,152.1

2,162.5

2,207.8

Tangible Assets (Non-GAAP)

Total assets (GAAP)

$25,739.8

$25,493.0

$25,679.0

$24,789.4

$25,571.5

Less: intangible assets (GAAP)¹

157.9

158.9

159.9

160.9

Tangible assets (Non-GAAP)

25,581.9

25,334.1

25,519.1

24,629.5

25,410.6

Tier 1 Common (Non-GAAP)

Tier 1 capital²

$2,641.4

$2,626.7

$2,841.1

$2,850.5

$2,875.1

Less:

noncontrolling

interest

FTBNA

preferred

stock

294.8

Less: trust preferred

200.0

Tier 1 common (Non-GAAP)

2,146.6

2,131.9

2,346.2

2,355.6

2,380.3

Risk Weighted Assets

Risk weighted assets

$20,095.0

$20,022.4

$19,783.4

$20,026.4

$19,910.8

Ratios

Tangible common equity to tangible assets (TCE/TA) (Non-GAAP)

8.13%

8.70%

9.05%

9.00%

Total equity to total assets (GAAP)

9.84%

9.86%

10.41%

10.83%

10.73%

Tier 1 common ratio (Non-GAAP)²

10.68%

10.65%

11.86%

11.76%

11.95%

Tier 1 capital to total assets (GAAP)

10.26%

10.30%

11.06%

11.50%

11.24%

Tangible common equity to risk weighted assets (TCE/RWA) (Non-GAAP)

10.34%

10.29%

11.22%

11.13%

11.49%

Tangible common equity plus reserves to risk weighted assets (Non-GAAP)

11.75%

11.89%

12.97%

13.05%

13.75%

Total equity plus reserves to total assets (GAAP)

10.93%

11.12%

11.76%

12.38%

12.49%

Reconciliation to GAAP Financials

Slides in this presentation use non-GAAP information of EPS, diluted shares, net income, revenue, FTEs, and pre-tax income &

various

ratios

using

one

those

measures.

That

information

not

presented

according

generally

accepted

accounting principles (GAAP) & reconciled to GAAP information below.

Numbers may not add to total due to rounding.

3Q12 Per Share Impact (Non-GAAP)

(In millions, except per share data)

Incremental

Provision

Litigation

Reserve

Net Impact from Restructuring,

Repositioning and

Efficiency Initiatives

Certain Charges

($30)

($7)

($3)

Tax Benefit (38.40%)

$12

After-Tax Impact

($18)

($4)

($2)

Diluted Shares (GAAP)

248

Per Share Impact of Certain Charges (Non-GAAP)

($0.07)

($0.02)

($0.01)

Diluted EPS (GAAP)

(In millions, except per share data)

Net Income Available to Common

Diluted Shares

Diluted Earnings Per Share

3Q12

$26

248

$0.10

Regional Banking Revenue Per FTE

000s)

3Q12

2Q12

3Q11

Total Revenue

$214,306

$212,664

$208,754

FTEs

3,122

3,245

3,279

Revenue Per FTE

$69

$66

$64

3Q12

2Q12

3Q11

Regional Banking Pre-Tax Income (GAAP)

$69

$65

$94

Capital Markets Pre-Tax Income (GAAP)

$21

$20

$28

Corporate Pre-Tax Income / (Loss) (GAAP)

-$19

-$21

$18

Core Businesses Pre-Tax Income (Non-GAAP)

$70

$64

$140

Non-Strategic Pre-Tax Income / (Loss) (GAAP)

-$37

-$275

-$97

Consolidated Pre-Tax Income / (Loss) (GAAP)

$34

-$211

$43

Pre-Tax Income

($ in millions)

Reconciliation to GAAP Financials

Slides in this presentation use non-GAAP information of tangible common equity, net income, and various ratios using this

measures. That information is 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.

Estimated by applying risk based capital regulations to period end assets.

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

Applies the consolidated Tier 1 Common ratio of 10.68% to the Non-Strategic risk weighted assets.

Return on Tangible Common Equity

($ in millions)

3Q12

Average Common Equity (GAAP)

$2,235

Intangibles (GAAP)

$158

Tangible Common Equity (Non-GAAP)

$2,077

Net Income Available to Common Shareholders (GAAP)

$26

Annualized Return on Tangible Common Equity (Non-GAAP)

4.94%

Return On Tangible Common Equity

($ in millions)

3Q12

Total FHN Risk Weighted Assets Estimate

(Regulatory GAAP)

$20,095

Less: Non-Strategic Risk Weighted Assets Estimate

(Regulatory Non-GAAP)

$4,209

Total Core Businesses

Risk Weighted Assets Estimate (Non-GAAP)

$15,886

Total FHN Tangible Common Equity (Non-GAAP)

$2,077

Less: Non-Strategic Allocated Tangible Common Equity at 10.68%

(Non-GAAP)

$450

Total Core Businesses

Tangible Common Equity (Non-GAAP)

$1,627

FHN Net Income to Common (GAAP)

$26

Core Businesses

Net Income to Common (Non-GAAP)

$48

FHN Return on Tangible Common Equity (Non-GAAP)

4.94%

Core Businesses

Return on Tangible Common Equity (Non-GAAP)

11.79%

Core Businesses Net Income Available to Common

3Q12

Corporate Net Income (GAAP)

($6)

Less: Corporate Non-controlling Interest (GAAP)

Corporate Net Income Available to Common (Non-GAAP)

($9)

Regional Banking Net Income (GAAP)

$44

Capital Markets Net Income (GAAP)

$13

Core Businesses

Net Income Available to Common (Non-GAAP)

$48

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