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

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8-K - FORM 8-K - FIRST HORIZON CORP	d522703d8k.htm

Exhibit 99.1

LOGO

FIRST QUARTER 2013

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

Consolidated Results

Income Statement

Summary Results		6

Income Statement		7

Other Income and Other Expense		8

Balance Sheet

Period End Balance Sheet		9

Average Balance Sheet		10

Net Interest Income		11

Average Balance Sheet: Yields and Rates		12

Charges for Restructuring, Repositioning, & Efficiency Initiatives		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		25

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

FHN PERFORMANCE HIGHLIGHTS

(First Quarter 2013 vs. Fourth Quarter 2012)

Consolidated

•

Net income available to common shareholders was $41.0 million, or $.17 per diluted share, compared to $40.7 million, or $.17 per diluted share in prior quarter

•

NII decreased in first quarter to $161.4 million from $170.6 million; NIM decreased to 2.95 percent from 3.09 percent

•

The decrease in NII is primarily attributable to a decline in loan balances (loans to mortgage companies and non-strategic loan portfolios), a decrease in commercial loan fees, a lower yielding securities portfolio, and the impact of day variance

•

The decrease in NIM is driven by excess cash held at the Fed, an increase in the average trading portfolio, declining yields on the investment portfolio, lower commercial loan fees, and a decline in loans to mortgage companies

•

Noninterest income (including securities gains) was $156.4 million in first quarter compared to $146.4 million in fourth quarter

•

Increase largely driven by higher fixed income sales revenue within capital markets in first quarter and fourth quarter negative valuation of an equity investment, partially offset by a first quarter decline in deposit fees

•

Noninterest expense was $240.5 million in first quarter compared to $271.4 million in fourth quarter

•

Decrease primarily driven by severance costs associated with the voluntary separation program (“VSP”) in fourth quarter and a reduction of pension related expenses resulting from the freeze of the pension plans on December 31, 2012

•

Period-end loans were $15.9 billion for the first quarter compared to $16.7 billion in fourth quarter

•

Decrease in the loan portfolio is primarily driven by a decline within the bank in loans to mortgage companies coupled with continued run-off within the non-strategic portfolios

•

Average core deposits declined to $15.7 billion in first quarter from $15.8 billion in fourth quarter, period-end declined 3 percent to $15.7 billion

Regional Banking

•

Net interest income was $145.1 million in first quarter, down from $153.1 million in fourth quarter

•

The decrease in NII is primarily attributable to lower loan balances (loans to mortgage companies), a decline in commercial loan fees, and the impact of day variance

•

The decrease in NIM is largely due to a decrease in loan fees coupled with an increase in lower yielding consumer installment and commercial loan balances

•

Provision credit was $2.5 million in first quarter compared to $1.2 million in prior quarter

•

Noninterest income was $59.1 million in first quarter compared to $64.1 million in fourth quarter

•

Deposit fee income decreased primarily due to seasonality in non-sufficient funds (“NSF”) fees

•

Noninterest expense decreased to $128.7 million in first quarter from $144.1 million in fourth quarter largely driven by a decline in pension related expenses, other personnel expenses due to head count reductions, and seasonally lower advertising costs from sponsorships

Capital Markets

•

Fixed income sales revenue increased to $68.0 million in first quarter from $65.6 million in fourth quarter

•

Fixed income average daily revenue (“ADR”) was $1.1 million in first and fourth quarters

•

Noninterest expenses increased to $61.7 million in first quarter from $57.5 million in prior quarter

•

The expense increase was due to an increase in variable compensation costs and the FICA reset

Corporate

•

NII was negative $7.7 million in first quarter compared to negative $8.2 million in fourth quarter

•

Estimated duration of the securities portfolio was 3.9 years in first quarter compared to 3.4 years in fourth quarter

•

Noninterest income was $7.9 million in first quarter compared to $6.0 million in prior quarter

•

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

•

Noninterest expense decreased to $17.6 million in first quarter from $36.1 million in prior quarter

•

Fourth quarter expense includes $18.3 million of Restructuring, Repositioning and Efficiency Initiatives, primarily severance related costs associated with the VSP

Non-Strategic

•

NII decreased to $20.2 million in first quarter from $21.5 million in fourth quarter due to continued run-off of the loan portfolio

•

Provision expense increased to $17.5 million in first quarter from $16.2 million in prior quarter

•

Noninterest income increased to $12.8 million in first quarter from $3.9 million in fourth quarter

•

First quarter includes a $2.4 million gain from the reversal of a previous LOCOM adjustment associated with a TRUP loan payoff

•

Fourth quarter includes a $4.7 million negative valuation adjustment related to an equity investment

•

Noninterest expense was $32.6 million in first quarter, compared to $33.6 million in the prior quarter

•

First quarter includes a $5.2 million loss accrual related to pending legal matters compared to a $4.3 million loss accrual in fourth quarter

•

The active repurchase pipeline decreased to $258.9 million in first quarter from $333.8 million in fourth quarter

•

The pipeline of repurchase/make whole requests, substantially all of which relate to requests from Fannie/Freddie, were $200.6 million as of the end of the first quarter down from $267.3 million in prior quarter

•

Weighted average base servicing fee for legacy mortgage banking and legacy equity lending (HELOCs and ILs) were 34 basis points and 50 basis points, respectively

FHN PERFORMANCE HIGHLIGHTS (continued)

(First Quarter 2013 vs. Fourth Quarter 2012)

Asset Quality

•

Allowance as a percentage of loans ratio was 167 basis points in first quarter compared to 166 basis points in prior quarter

•

Total reserves decreased to $265.2 million from $277.0 million in fourth quarter

•

Reserve decrease driven by continued stabilization of the commercial portfolio

•

Provision expense was flat at $15.0 million in the first quarter

•

Net charge-offs were $26.7 million in first quarter compared to $19.8 million in prior quarter

•

Annualized net charge-offs increased to 67 basis points of average loans from 48 basis points in prior quarter

•

Prior quarter charge-offs included a favorable adjustment for lower loss estimate for discharged bankruptcies based on loan-level data obtained from new appraisals in the fourth quarter

•

Total 30+ delinquencies were $106.6 million in first quarter compared to $123.1 million in prior quarter

•

Consumer real estate loans in the non-strategic segment was the major contributor to this decline

•

Nonperforming assets (“NPAs”) declined slightly from prior quarter

•

The decline in commercial nonperforming loans (“NPLs”) through payments, charge-offs, resolutions and the sale of a TRUP loan, was more than offset by the increase in the NPLs held-for-sale

•

Foreclosed real estate declined to $32.7 million in first quarter compared to $41.8 million in the prior quarter

•

Troubled debt restructurings (“TDRs”) were $550.9 million at the end of first quarter compared with $550.6 million prior quarter

Taxes

•

First quarter includes $6.2 million of positive effect from permanent tax benefits primarily related to tax credit investments, life insurance, and tax exempt interest

•

Fourth quarter includes $24.6 million of positive effect from permanent tax benefits

•

$17.0 million related to discrete period tax items

•

$7.6 million in permanent tax benefits primarily related to tax credit investments, life insurance, and tax exempt interest

Capital and Liquidity

•

Paid $0.05 per share dividend April 1, 2013

•

Increased stock repurchase program to $300 million; Repurchased shares costing $30.0 million in first quarter

•

Repurchased shares costing $205.1 million since the program’s inception in fourth quarter 2011

•

Volume weighted average price for all share repurchases under the stock repurchase program of $8.81 per share (before $.03 per share broker commission)

•

Issued $100 million (approximately $96 million net of offering costs) of Series A Non-Cumulative Perpetual Preferred Stock; Paid quarterly dividend of $1.2 million on April 10, 2013

•

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

•

8.21 percent for tangible common equity to tangible assets

•

13.50 percent for Tier 1

•

16.03 percent for Total Capital

•

10.59 percent for Tier 1 Common

FHN CONSOLIDATED SUMMARY RESULTS

Quarterly, Unaudited


												1Q13 Changes vs.
(Dollars in thousands, except per share data)	1Q13		4Q12		3Q12		2Q12		1Q12		4Q12		1Q12
Income Statement Highlights
Net interest income		$ 161,382		$ 170,598		$ 173,465		$ 172,675		$ 171,929		(5)%		(6)%
Noninterest income		156,403		151,143		163,538		153,842		202,113		3 %		(23)%
Securities gains/(losses), net		24		(4,700)		-		5,065		328		NM		NM
Total revenue		317,809		317,041		337,003		331,582		374,370		*		(15)%
Noninterest expense		240,540		271,361		263,169		527,177		321,994		(11)%		(25)%
Provision for loan losses		15,000		15,000		40,000		15,000		8,000		*		88 %
Income/(loss) before income taxes		62,269		30,680		33,834		(210,595)		44,376		NM		40 %
Provision/(benefit) for income taxes		17,730		(12,914)		5,260		(88,178)		10,570		NM		68 %
Income/(loss) from continuing operations		44,539		43,594		28,574		(122,417)		33,806		2 %		32 %
Income/(loss) from discontinued operations, net of tax		430		(12)		108		487		(435)		NM		NM
Net income/(loss)		44,969		43,582		28,682		(121,930)		33,371		3 %		35 %
Net income attributable to noncontrolling interest		2,813		2,901		2,875		2,844		2,844		(3)%		(1)%
Net income/(loss) attributable to controlling interest		42,156		40,681		25,807		(124,774)		30,527		4 %		38 %
Preferred stock dividends		1,188		-		-		-		-		NM		NM
Net income/(loss) available to common shareholders		$ 40,968		$ 40,681		$ 25,807		$ (124,774)		$ 30,527		1 %		34 %
Common Stock Data
Diluted EPS from continuing operations		$ 0.17		$ 0.17		$ 0.10		$ (0.50)		$ 0.12		*		42 %
Diluted EPS		$ 0.17		$ 0.17		$ 0.10		$ (0.50)		$ 0.12		*		42 %
Diluted shares (thousands)		242,799		246,132		248,306		249,104		255,369		(1)%		(5)%
Period-end shares outstanding (thousands)		241,225		243,598		247,134		248,810		252,667		(1)%		(5)%
Cash dividends declared per share		$ 0.05		$ 0.01		$ 0.01		$ 0.01		$ 0.01		NM		NM
Balance Sheet Highlights (Period-End)
Total loans, net of unearned income (Restricted - $.1 billion) (a)		$ 15,889,670		$ 16,708,582		$ 16,523,783		$ 16,185,763		$ 15,971,330		(5)%		(1)%
Total deposits		16,204,467		16,629,709		16,228,111		16,117,443		16,935,170		(3)%		(4)%
Total assets (Restricted - $.1 billion) (a)		25,166,427		25,520,140		25,739,830		25,492,955		25,678,969		(1)%		(2)%
Total liabilities (Restricted - $.1 billion) (a)		22,566,700		23,010,934		23,207,942		22,978,549		23,004,796		(2)%		(2)%
Total equity		2,599,727		2,509,206		2,531,888		2,514,406		2,674,173		4 %		(3)%
Asset Quality Highlights
Allowance for loan losses (Restricted - $3.7 million) (a)		$ 265,218		$ 276,963		$ 281,744		$ 321,051		$ 346,016		(4)%		(23)%
Allowance / period-end loans		1.67 %		1.66 %		1.71 %		1.98 %		2.17 %
Net charge-offs		$ 26,745		$ 19,781		$ 79,307		$ 39,965		$ 46,335		35 %		(42)%
Net charge-offs (annualized) / average loans		0.67 %		0.48 %		1.92 %		1.01 %		1.16 %
Non-performing assets (NPA)		$ 418,385		$ 419,369		$ 450,391		$ 466,873		$ 511,320		*		(18)%
NPA % (b)		1.81 %		1.84 %		2.15 %		2.32 %		2.56 %
Key Ratios & Other
Return on average assets (annualized) (c)		0.73 %		0.69 %		0.45 %		(1.96)%		0.53 %
Return on average common equity (annualized) (d)		7.48 %		7.20 %		4.59 %		(21.06)%		5.15 %
Net interest margin (e) (f)		2.95 %		3.09 %		3.15 %		3.16 %		3.12 %
Fee income to total revenue (g)		49.22 %		46.98 %		48.53 %		47.12 %		54.03 %
Efficiency ratio (h)		75.69 %		84.34 %		78.09 %		161.45 %		86.08 %
Book value per common share		$ 9.16		$ 9.09		$ 9.05		$ 8.92		$ 9.42
Tangible book value per common share (f)		$ 8.51		$ 8.44		$ 8.41		$ 8.28		$ 8.78
Adjusted tangible common equity to risk weighted assets (f) (i)		9.88 %		9.93 %		10.03 %		9.97 %		10.88 %
Market capitalization (millions)		$ 2,576.3		$ 2,414.1		$ 2,379.9		$ 2,152.2		$ 2,622.7
Full time equivalent employees		4,381		4,507		4,585		4,619		4,629

NM - Not meaningful

* Amount is less than one percent.

(a)	Restricted balances parenthetically presented are as of March 31, 2013.

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

(c)	Calculated using net income.

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

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

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

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

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

(i)	Current quarter is an estimate.

FHN CONSOLIDATED INCOME STATEMENT

Quarterly, Unaudited


												1Q13 Changes vs.
(Thousands)	1Q13		4Q12		3Q12		2Q12		1Q12		4Q12			1Q12

Interest income		$ 186,399		$ 196,199		$ 200,516		$ 200,735		$ 201,503		(5)	%		(7)	%
Less: interest expense		25,017		25,601		27,051		28,060		29,574		(2)	%		(15)	%
Net interest income		161,382		170,598		173,465		172,675		171,929		(5)	%		(6)	%
Provision for loan losses (a)		15,000		15,000		40,000		15,000		8,000		*			88	%
Net interest income after provision for loan losses		146,382		155,598		133,465		157,675		163,929		(6)	%		(11)	%
Noninterest income:
Capital markets (b)		79,163		72,483		80,773		74,913		106,743		9	%		(26)	%
Mortgage banking		9,373		8,287		10,373		9,889		23,341		13	%		(60)	%
Deposit transactions and cash management		27,656		30,952		30,352		30,123		28,741		(11)	%		(4)	%
Trust services and investment management		6,328		5,979		6,055		6,477		5,808		6	%		9	%
Brokerage, management fees and commissions		9,348		8,980		8,699		8,759		8,496		4	%		10	%
Insurance commissions		600		804		946		830		568		(25)	%		6	%
Securities gains/(losses), net (c)		24		(4,700)		-		5,065		328		NM			(93)	%
Gain on divestiture		-		-		-		-		200		NM			NM
Other (d)		23,935		23,658		26,340		22,851		28,216		1	%		(15)	%
Total noninterest income		156,427		146,443		163,538		158,907		202,441		7	%		(23)	%
Adjusted gross income after provision for loan losses		302,809		302,041		297,003		316,582		366,370		*			(17)	%
Noninterest expense:
Employee compensation, incentives, and benefits		139,184		161,813		153,970		149,616		175,458		(14)	%		(21)	%
Repurchase and foreclosure provision (e)		-		-		-		250,000		49,256		NM			NM
Operations services		8,070		8,123		8,702		9,477		9,127		(1)	%		(12)	%
Occupancy		12,822		12,363		13,059		11,486		12,119		4	%		6	%
Legal and professional fees		11,171		11,971		12,295		8,417		6,067		(7)	%		84	%
FDIC premium expense		6,011		7,299		7,532		6,801		6,336		(18)	%		(5)	%
Computer software		10,076		10,333		10,260		9,960		9,465		(2)	%		6	%
Contract employment and outsourcing		9,039		9,052		10,187		10,844		11,115		*			(19)	%
Equipment rentals, depreciation, and maintenance		7,820		7,910		7,931		7,789		7,616		(1)	%		3	%
Foreclosed real estate		1,439		1,995		2,968		1,908		4,170		(28)	%		(65)	%
Communications and courier		4,437		4,613		4,722		4,484		4,499		(4)	%		(1)	%
Miscellaneous loan costs		996		924		577		1,298		1,327		8	%		(25)	%
Amortization of intangible assets		928		979		979		979		973		(5)	%		(5)	%
Other (d)		28,547		33,986		29,987		54,118		24,466		(16)	%		17	%
Total noninterest expense		240,540		271,361		263,169		527,177		321,994		(11)	%		(25)	%
Income/(loss) before income taxes		62,269		30,680		33,834		(210,595)		44,376		NM			40	%
Provision/(benefit) for income taxes (f)		17,730		(12,914)		5,260		(88,178)		10,570		NM			68	%
Income/(loss) from continuing operations		44,539		43,594		28,574		(122,417)		33,806		2	%		32	%
Income/(loss) from discontinued operations, net of tax		430		(12)		108		487		(435)		NM			NM
Net income/(loss)		44,969		43,582		28,682		(121,930)		33,371		3	%		35	%
Net income attributable to noncontrolling interest		2,813		2,901		2,875		2,844		2,844		(3)	%		(1)	%
Net income attributable to controlling interest		42,156		40,681		25,807		(124,774)		30,527		4	%		38	%
Preferred stock dividends		1,188		-		-		-		-		NM			NM
Net income/(loss) available to common shareholders		$ 40,968		$ 40,681		$ 25,807		$ (124,774)		$ 30,527		1	%		34	%

NM - Not meaningful

* Amount is less than one percent.

(a)	3Q12 includes approximately $30 million associated with the implementation of regulatory guidance related to discharged bankruptcies.

(b)	1Q13 includes a $2.4 million gain from a LOCOM reversal associated with a TRUP loan payoff within the non-strategic segment.

(c)	4Q12 includes a $4.7 million negative valuation adjustment related to an equity investment. 2Q12 includes a $5.1 million gain on sale of venture capital investment.

(d)	Refer to the Other Income and Other Expense table on page 8 for additional information.

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

(f)	4Q12 includes $17.0 million in tax benefits related to discrete period tax items.

FHN OTHER INCOME AND OTHER EXPENSE

Quarterly, Unaudited


												1Q13 Changes vs.
(Thousands)	1Q13		4Q12		3Q12		2Q12		1Q12		4Q12		1Q12

Other Income
Bank owned life insurance	$	5,472	$	5,081	$	4,293	$	4,659	$	4,772		8 %		15 %
Bankcard income		4,882		5,766		5,298		5,705		5,615		(15)%		(13)%
ATM and interchange fees		2,384		2,724		2,579		2,669		2,556		(12)%		(7)%
Other service charges		3,086		3,167		3,263		3,212		3,293		(3)%		(6)%
Electronic banking fees		1,562		1,610		1,589		1,632		1,706		(3)%		(8)%
Letter of credit fees		1,499		1,192		1,072		1,560		1,334		26 %		12 %
Deferred compensation (a)		1,593		396		1,966		(1,020)		3,119		NM		(49)%
Other		3,457		3,722		6,280		4,434		5,821		(7)%		(41)%
Total	$	23,935	$	23,658	$	26,340	$	22,851	$	28,216		1 %		(15)%

Other Expense
Litigation and regulatory matters	$	5,170	$	4,300	$	6,760	$	22,100	$	153		20 %		NM
Advertising and public relations		3,947		5,915		4,121		3,153		4,250		(33)%		(7)%
Tax credit investments (b)		2,972		4,198		5,635		4,214		4,608		(29)%		(36)%
Other insurance and taxes (c)		3,046		3,078		1,327		3,130		3,199		(1)%		(5)%
Travel and entertainment		1,848		2,058		2,009		2,435		1,864		(10)%		(1)%
Customer relations		1,278		1,348		1,027		1,348		855		(5)%		49 %
Employee training and dues		1,254		1,171		1,032		1,230		1,092		7 %		15 %
Supplies		1,055		1,021		881		817		1,033		3 %		2 %
Bank examination costs		828		816		816		800		799		1 %		4 %
Loan insurance expense		540		552		578		636		589		(2)%		(8)%
Federal services fees		282		27		323		328		321		NM		(12)%
Other (d)		6,327		9,502		5,478		13,927		5,703		(33)%		11 %
Total	$	28,547	$	33,986	$	29,987	$	54,118	$	24,466		(16)%		17 %

NM - Not meaningful

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

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

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

(d)	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


						1Q13 Changes vs.
(Thousands)	1Q13	4Q12	3Q12	2Q12	1Q12	4Q12	1Q12

Assets:
Investment securities	$ 3,190,219	$ 3,061,808	$ 3,123,629	$ 3,264,866	$ 3,296,603	4 %	(3)%
Loans held-for-sale	390,874	401,937	410,550	424,051	431,905	(3)%	(10)%
Loans, net of unearned income (Restricted - $.1 billion) (a)	15,889,670	16,708,582	16,523,783	16,185,763	15,971,330	(5)%	(1)%
Federal funds sold	33,738	34,492	12,425	44,961	18,732	(2)%	80 %
Securities purchased under agreements to resell	732,696	601,891	517,263	480,543	595,973	22 %	23 %
Interest-bearing cash (b)	431,182	353,373	440,916	484,430	761,098	22 %	(43)%
Trading securities	1,397,746	1,262,720	1,204,366	1,361,717	1,238,041	11 %	13 %
Total earning assets	22,066,125	22,424,803	22,232,932	22,246,331	22,313,682	(2)%	(1)%
Cash and due from banks (Restricted- $.2 million) (a)	275,262	469,879	355,978	330,931	349,604	(41)%	(21)%
Capital markets receivables	533,306	303,893	791,190	377,496	522,001	75 %	2 %
Mortgage servicing rights, net	109,102	114,311	120,537	129,291	142,956	(5)%	(24)%
Goodwill	134,242	134,242	134,242	134,242	134,242	*	*
Other intangible assets, net	21,772	22,700	23,679	24,659	25,638	(4)%	(15)%
Premises and equipment, net	299,740	303,273	305,346	311,753	314,903	(1)%	(5)%
Real estate acquired by foreclosure (c)	54,672	60,690	70,779	69,603	78,947	(10)%	(31)%
Allowance for loan losses (Restricted - $3.7 million) (a)	(265,218)	(276,963)	(281,744)	(321,051)	(346,016)	(4)%	(23)%
Derivative assets	274,332	292,472	334,025	340,810	340,337	(6)%	(19)%
Other assets (Restricted - $1.6 million) (a)	1,663,092	1,670,840	1,652,866	1,848,890	1,802,675	*	(8)%
Total assets (Restricted - $.1 billion) (a)	$ 25,166,427	$ 25,520,140	$ 25,739,830	$ 25,492,955	$ 25,678,969	(1)%	(2)%

Liabilities and Equity:
Deposits:
Savings	$ 6,498,832	$ 6,705,496	$ 6,608,534	$ 5,979,874	$ 6,615,289	(3)%	(2)%
Other interest-bearing deposits	3,740,257	3,798,313	3,468,367	3,565,873	3,500,445	(2)%	7 %
Time deposits	988,375	1,019,938	1,063,380	1,109,163	1,142,249	(3)%	(13)%
Total interest-bearing core deposits	11,227,464	11,523,747	11,140,281	10,654,910	11,257,983	(3)%	*
Noninterest-bearing deposits	4,454,045	4,602,472	4,569,113	4,833,994	4,969,597	(3)%	(10)%
Total core deposits (d)	15,681,509	16,126,219	15,709,394	15,488,904	16,227,580	(3)%	(3)%
Certificates of deposit $100,000 and more	522,958	503,490	518,717	628,539	707,590	4 %	(26)%
Total deposits	16,204,467	16,629,709	16,228,111	16,117,443	16,935,170	(3)%	(4)%
Federal funds purchased	1,361,670	1,351,023	1,350,806	1,417,590	1,487,469	1 %	(8)%
Securities sold under agreements to repurchase	488,010	555,438	443,370	363,400	313,765	(12)%	56 %
Trading liabilities	781,306	564,429	516,970	470,631	567,571	38 %	38 %
Other short-term borrowings (e)	186,898	441,201	856,958	1,094,179	181,570	(58)%	3 %
Term borrowings (Restricted - $.1 billion) (a)	2,197,864	2,226,482	2,263,238	2,294,224	2,340,706	(1)%	(6)%
Capital markets payables	461,333	296,450	574,201	203,548	361,018	56 %	28 %
Derivative liabilities	199,999	202,269	225,084	235,490	234,188	(1)%	(15)%
Other liabilities	685,153	743,933	749,204	782,044	583,339	(8)%	17 %
Total liabilities (Restricted - $.1 billion) (a)	22,566,700	23,010,934	23,207,942	22,978,549	23,004,796	(2)%	(2)%
Equity:
Common stock (f)	150,766	152,249	154,459	155,506	157,917	(1)%	(5)%
Capital surplus (f)	1,461,292	1,488,463	1,517,488	1,528,161	1,560,343	(2)%	(6)%
Undivided profits	748,427	719,672	681,460	658,157	785,361	4 %	(5)%
Accumulated other comprehensive loss, net (g)	(151,639)	(146,343)	(116,684)	(122,583)	(124,613)	4 %	22 %
Preferred stock	95,624	-	-	-	-	NM	NM
Noncontrolling interest (h)	295,257	295,165	295,165	295,165	295,165	*	*
Total equity	2,599,727	2,509,206	2,531,888	2,514,406	2,674,173	4 %	(3)%
Total liabilities and equity	$ 25,166,427	$ 25,520,140	$ 25,739,830	$ 25,492,955	$ 25,678,969	(1)%	(2)%

NM - Not meaningful

* Amount is less than one percent.

(a)	Restricted balances parenthetically presented are as of March 31, 2013.

(b)	Includes excess balances held at Fed.

(c)	1Q13 includes $22.0 million of foreclosed assets related to government insured mortgages.

(d)	1Q13 average core deposits were $15.7 billion.

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

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

(g)	4Q12 change primarily driven by annual benefit plan remeasurement.

(h)	Consists of preferred stock of subsidiary.

FHN CONSOLIDATED AVERAGE BALANCE SHEET

Quarterly, Unaudited


						1Q13 Changes vs.
(Thousands)	1Q13	4Q12	3Q12	2Q12	1Q12	4Q12	1Q12

Assets:
Earning assets:
Loans, net of unearned income:
Commercial, financial, and industrial (C&I)	$ 8,199,249	$ 8,330,961	$ 8,237,939	$ 7,712,551	$ 7,709,856	(2)%	6 %
Income CRE	1,105,669	1,174,127	1,192,905	1,236,016	1,255,713	(6)%	(12)%
Residential CRE	55,798	63,647	79,107	94,531	111,823	(12)%	(50)%
Consumer real estate	5,644,275	5,757,724	5,819,620	5,864,713	5,874,049	(2)%	(4)%
Permanent mortgage	801,000	788,428	805,580	776,440	810,701	2 %	(1)%
Credit card and other	291,221	288,412	277,154	276,017	279,150	1 %	4 %
Total loans, net of unearned income (Restricted - $.1 billion) (a) (b)	16,097,212	16,403,299	16,412,305	15,960,268	16,041,292	(2)%	*
Loans held-for-sale	392,272	403,750	413,625	425,176	424,086	(3)%	(8)%
Investment securities:
U.S. treasuries	44,107	43,909	42,551	42,424	40,088	*	10 %
U.S. government agencies	2,818,958	2,774,175	2,894,104	2,981,090	2,802,651	2 %	1 %
States and municipalities	15,255	17,169	17,970	18,005	18,070	(11)%	(16)%
Other	216,860	222,058	220,324	223,924	224,000	(2)%	(3)%
Total investment securities	3,095,180	3,057,311	3,174,949	3,265,443	3,084,809	1 %	*
Capital markets securities inventory	1,308,969	1,250,423	1,189,852	1,327,596	1,277,372	5 %	2 %
Mortgage banking trading securities	17,486	18,844	20,112	22,841	25,797	(7)%	(32)%
Other earning assets:
Federal funds sold	24,173	24,701	28,229	25,465	12,337	(2)%	96 %
Securities purchased under agreements to resell	754,630	586,258	531,914	606,554	620,635	29 %	22 %
Interest-bearing cash (c)	653,712	522,529	402,378	518,124	821,113	25 %	(20)%
Total other earning assets	1,432,515	1,133,488	962,521	1,150,143	1,454,085	26 %	(1)%
Total earnings assets (Restricted - $.1 billion) (a)	22,343,634	22,267,115	22,173,364	22,151,467	22,307,441	*	*
Allowance for loan losses (Restricted - $4.0 million) (a)	(270,385)	(306,583)	(309,810)	(336,642)	(372,264)	(12)%	(27)%
Cash and due from banks (Restricted - $.7 million) (a)	348,581	349,002	339,098	337,366	351,760	*	(1)%
Capital markets receivables	121,891	114,771	168,806	100,408	91,430	6 %	33 %
Premises and equipment, net	299,846	303,921	306,709	312,313	317,621	(1)%	(6)%
Derivative assets	286,243	317,076	325,917	338,408	359,975	(10)%	(20)%
Other assets (Restricted - $1.7 million) (a)	1,948,417	1,925,664	2,085,670	2,111,315	2,144,410	1 %	(9)%
Total assets (Restricted - $.1 billion) (a)	$ 25,078,227	$ 24,970,966	$ 25,089,754	$ 25,014,635	$ 25,200,373	*	*

Liabilities and equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Savings	$ 6,593,590	$ 6,529,453	$ 6,106,767	$ 6,290,143	$ 6,690,470	1 %	(1)%
Other interest-bearing deposits	3,709,988	3,469,711	3,426,864	3,512,390	3,246,658	7 %	14 %
Time deposits	1,004,887	1,038,672	1,085,368	1,125,738	1,155,716	(3)%	(13)%
Total interest-bearing core deposits	11,308,465	11,037,836	10,618,999	10,928,271	11,092,844	2 %	2 %
Certificates of deposit $100,000 and more	516,785	514,543	570,415	675,688	660,256	*	(22)%
Federal funds purchased	1,479,316	1,538,970	1,448,347	1,523,974	1,681,983	(4)%	(12)%
Securities sold under agreements to repurchase	572,666	457,493	388,208	355,278	321,583	25 %	78 %
Capital markets trading liabilities	779,409	597,402	544,422	602,344	614,084	30 %	27 %
Other short-term borrowings (d)	209,376	272,578	967,303	377,075	182,083	(23)%	15 %
Term borrowings (Restricted - $.1 billion) (a)	2,221,297	2,254,445	2,279,344	2,317,247	2,457,291	(1)%	(10)%
Total interest-bearing liabilities	17,087,314	16,673,267	16,817,038	16,779,877	17,010,124	2 %	*
Noninterest-bearing deposits	4,441,411	4,770,935	4,660,529	4,696,844	4,623,457	(7)%	(4)%
Capital markets payables	91,539	81,941	116,680	73,312	71,180	12 %	29 %
Derivative liabilities	194,892	211,598	220,309	230,440	248,972	(8)%	(22)%
Other liabilities	683,596	689,782	744,871	556,446	565,445	(1)%	21 %
Equity	2,579,475	2,543,443	2,530,327	2,677,716	2,681,195	1 %	(4)%
Total liabilities and equity (Restricted - $.1 billion) (a)	$ 25,078,227	$ 24,970,966	$ 25,089,754	$ 25,014,635	$ 25,200,373	*	*

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

NM - Not meaningful

* Amount is less than one percent.

(a)	Restricted balances parenthetically presented are quarterly averages as of March 31, 2013.

(b)	Includes loans on nonaccrual status.

(c)	Includes excess balances held at Fed.

(d)	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


												1Q13 Changes vs.
(Thousands)	1Q13		4Q12		3Q12		2Q12		1Q12		4Q12		1Q12

Interest Income:
Loans, net of unearned income (b)		$ 154,955		$ 163,693		$ 165,368		$ 162,698		$ 163,070		(5)%		(5)%
Loans held-for-sale		3,502		3,732		3,808		3,628		3,738		(6)%		(6)%
Investment securities:
U.S. treasuries		8		11		11		39		66		(27)%		(88)%
U.S. government agencies		18,507		19,536		21,759		23,562		23,768		(5)%		(22)%
States and municipalities		23		6		65		63		76		NM		(70)%
Other		2,332		2,495		2,323		2,324		2,422		(7)%		(4)%
Total investment securities		20,870		22,048		24,158		25,988		26,332		(5)%		(21)%
Capital markets securities inventory		7,901		7,565		7,998		9,204		8,934		4 %		(12)%
Mortgage banking trading securities		489		534		569		578		642		(8)%		(24)%
Other earning assets:
Federal funds sold and securities purchased under agreements to resell		105		182		165		115		-		(42)%		NM
Interest-bearing cash		364		287		202		280		446		27 %		(18)%
Total other earning assets		469		469		367		395		446		*		5 %
Interest income		$ 188,186		$ 198,041		$ 202,268		$ 202,491		$ 203,162		(5)%		(7)%

Interest Expense:
Interest-bearing deposits:
Savings		$ 4,397		$ 4,617		$ 4,764		$ 4,744		$ 5,619		(5)%		(22)%
Other interest-bearing deposits		1,145		1,268		1,455		1,655		1,518		(10)%		(25)%
Time deposits		4,217		4,639		5,169		5,541		5,916		(9)%		(29)%
Total interest-bearing core deposits		9,759		10,524		11,388		11,940		13,053		(7)%		(25)%
Certificates of deposit $100,000 and more		1,561		1,725		1,975		2,305		2,306		(10)%		(32)%
Federal funds purchased and securities sold under agreements to repurchase		1,200		1,196		1,096		1,114		1,223		*		(2)%
Capital markets trading liabilities		3,196		2,536		2,556		2,843		2,515		26 %		27 %
Other short-term borrowings		106		132		347		36		142		(20)%		(25)%
Term borrowings		9,195		9,488		9,689		9,822		10,335		(3)%		(11)%
Interest expense		25,017		25,601		27,051		28,060		29,574		(2)%		(15)%
Net interest income - tax equivalent basis		163,169		172,440		175,217		174,431		173,588		(5)%		(6)%
Fully taxable equivalent adjustment		(1,787)		(1,842)		(1,752)		(1,756)		(1,659)		3 %		(8)%
Net interest income		$ 161,382		$ 170,598		$ 173,465		$ 172,675		$ 171,929		(5)%		(6)%

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.

FHN CONSOLIDATED AVERAGE BALANCE SHEET: YIELDS AND RATES

Quarterly, Unaudited


	1Q13			4Q12			3Q12			2Q12			1Q12

Assets:
Earning assets (a):
Loans, net of unearned income:
Commercial loans		3.70	%		3.83	%		3.81	%		3.92	%		3.90	%
Retail loans		4.16			4.18			4.30			4.33			4.32
Total loans, net of unearned income (b)		3.89			3.98			4.01			4.09			4.08
Loans held-for-sale		3.57			3.70			3.68			3.41			3.53
Investment securities:
U.S. treasuries		0.07			0.10			0.11			0.37			0.66
U.S. government agencies		2.63			2.82			3.01			3.16			3.39
States and municipalities		0.59			0.13			1.44			1.39			1.68
Other		4.30			4.49			4.22			4.15			4.33
Total investment securities		2.70			2.88			3.04			3.18			3.41
Capital markets securities inventory		2.41			2.42			2.69			2.77			2.80
Mortgage banking trading securities		11.19			11.34			11.31			10.12			9.96
Other earning assets:
Federal funds sold and securities purchased under agreements to resell		0.05			0.12			0.12			0.07			-
Interest-bearing cash		0.23			0.22			0.20			0.22			0.22
Total other earning assets		0.13			0.16			0.15			0.14			0.12
Interest income/total earning assets		3.40	%		3.55	%		3.64	%		3.67	%		3.65	%

Liabilities:
Interest-bearing liabilities:
Interest-bearing deposits:
Savings		0.27	%		0.28	%		0.31	%		0.30	%		0.34	%
Other interest-bearing deposits		0.13			0.15			0.17			0.19			0.19
Time deposits		1.70			1.78			1.89			1.98			2.06
Total interest-bearing core deposits		0.35			0.38			0.43			0.44			0.47
Certificates of deposit $100,000 and more		1.23			1.33			1.38			1.37			1.40
Federal funds purchased and securities sold under agreements to repurchase		0.24			0.24			0.24			0.24			0.25
Capital markets trading liabilities		1.66			1.69			1.87			1.90			1.65
Other short-term borrowings		0.21			0.19			0.14			0.04			0.31
Term borrowings (c)		1.66			1.69			1.70			1.70			1.68
Interest expense/total interest-bearing liabilities		0.59			0.61			0.64			0.67			0.70
Net interest spread		2.81	%		2.94	%		3.00	%		3.00	%		2.95	%
Effect of interest-free sources used to fund earning assets		0.14			0.15			0.15			0.16			0.17
Net interest margin		2.95	%		3.09	%		3.15	%		3.16	%		3.12	%

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

FHN CHARGES FOR RESTRUCTURING, REPOSITIONING, & EFFICIENCY INITIATIVES

Quarterly, Unaudited


(Thousands)	1Q13		4Q12		3Q12		2Q12		1Q12

By Income Statement Impact
Noninterest income
Mortgage banking (a)		$ -		$ (348)		$ -		$ (2,287)		$ -
Gain on divestiture		-		-		-		-		200
Noninterest expense
Employee compensation, incentives, and benefits (b)		819		18,128		2,730		2,191		(152)
Occupancy		438		180		41		(219)		44
Legal and professional fees		-		-		-		-		15
All other expense		-		17		-		12		5
Total gain/(loss) before income taxes		(1,257)		(18,673)		(2,771)		(4,271)		288
Income/(loss) from discontinued operations (c)		735		-		180		485		(96)
Net impact resulting from restructuring, repositioning, and efficiency initiatives		$ (522)		$ (18,673)		$ (2,591)		$ (3,786)		$ 192

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

(b)	Includes severance associated with the VSP during 1Q13 and 4Q12.

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

FHN MORTGAGE SERVICING RIGHTS

Quarterly, Unaudited


												1Q13 Changes vs.
(Thousands)	1Q13		4Q12		3Q12		2Q12		1Q12		4Q12		1Q12

First Liens
Fair value beginning balance		$ 111,314		$ 117,440		$ 126,085		$ 139,676		$ 140,724
Reductions due to loan payments		(5,374)		(5,592)		(6,050)		(6,665)		(5,499)
Reductions due to exercise of cleanup calls		(495)		-		(494)		-		-
Changes in fair value due to:
Changes in valuation model inputs or assumptions (a)		834		(569)		(2,107)		(6,855)		4,459
Other changes in fair value		(88)		35		6		(71)		(8)
Fair value ending balance		$ 106,191		$ 111,314		$ 117,440		$ 126,085		$ 139,676		(5) %		(24) %

Second Liens
Fair value beginning balance		$ 196		$ 205		$ 215		$ 222		$ 231
Reductions due to loan payments		(48)		(9)		(10)		(7)		(9)
Changes in fair value due to:
Other changes in fair value		45		-		-		-		-
Fair value ending balance		$ 193		$ 196		$ 205		$ 215		$ 222		(2) %		(13) %

HELOC
Fair value beginning balance		$ 2,801		$ 2,892		$ 2,991		$ 3,058		$ 3,114
Reductions due to loan payments		(125)		(91)		(102)		(79)		(76)
Changes in fair value due to:
Other changes in fair value		42		-		3		12		20
Fair value ending balance		$ 2,718		$ 2,801		$ 2,892		$ 2,991		$ 3,058		(3) %		(11) %

Total Consolidated
Fair value beginning balance		$ 114,311		$ 120,537		$ 129,291		$ 142,956		$ 144,069
Reductions due to loan payments		(5,547)		(5,692)		(6,162)		(6,751)		(5,584)
Reductions due to exercise of cleanup calls		(495)		-		(494)		-		-
Changes in fair value due to:
Changes in valuation model inputs or assumptions (a)		834		(569)		(2,107)		(6,855)		4,459
Other changes in fair value		(1)		35		9		(59)		12
Fair value ending balance		$ 109,102		$ 114,311		$ 120,537		$ 129,291		$ 142,956		(5) %		(24) %

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

FHN BUSINESS SEGMENT HIGHLIGHTS

Quarterly, Unaudited


						1Q13 Changes vs.
(Thousands)	1Q13	4Q12	3Q12	2Q12	1Q12	4Q12	1Q12

Regional Banking
Net interest income	$ 145,097	$ 153,070	$ 150,308	$ 147,767	$ 146,636	(5)%	(1)%
Noninterest income	59,144	64,074	64,235	65,037	60,052	(8)%	(2)%
Total revenues	204,241	217,144	214,543	212,804	206,688	(6)%	(1)%
Provision/(provision credit) for loan losses	(2,485)	(1,227)	2,927	4,828	(7,426)	NM	67 %
Noninterest expense	128,713	144,100	141,641	143,378	140,643	(11)%	(8)%
Income before income taxes	78,013	74,271	69,975	64,598	73,471	5 %	6 %
Provision for income taxes	28,352	26,852	25,328	23,251	26,752	6 %	6 %
Net income	$ 49,661	$ 47,419	$ 44,647	$ 41,347	$ 46,719	5 %	6 %

Capital Markets
Net interest income	$ 3,847	$ 4,248	$ 4,753	$ 5,608	$ 5,680	(9)%	(32)%
Noninterest income	76,612	72,432	80,817	74,968	106,775	6 %	(28)%
Total revenues	80,459	76,680	85,570	80,576	112,455	5 %	(28)%
Noninterest expense	61,668	57,541	64,602	60,936	80,306	7 %	(23)%
Income before income taxes	18,791	19,139	20,968	19,640	32,149	(2)%	(42)%
Provision for income taxes	7,123	7,182	7,898	7,403	12,238	(1)%	(42)%
Net income	$ 11,668	$ 11,957	$ 13,070	$ 12,237	$ 19,911	(2)%	(41)%

Corporate
Net interest income/(expense)	$ (7,717)	$ (8,179)	$ (5,268)	$ (4,706)	$ (5,309)	6 %	(45)%
Noninterest income	7,855	6,015	7,904	3,825	9,262	31 %	(15)%
Total revenues	138	(2,164)	2,636	(881)	3,953	NM	(97)%
Noninterest expense (a)	17,587	36,104	21,534	19,138	22,373	(51)%	(21)%
Income/(loss) before income taxes	(17,449)	(38,268)	(18,898)	(20,019)	(18,420)	54 %	5 %
Benefit for income taxes	(11,171)	(37,530)	(13,255)	(13,029)	(11,934)	70 %	6 %
Net loss	$ (6,278)	$ (738)	$ (5,643)	$ (6,990)	$ (6,486)	NM	3 %

Non-Strategic
Net interest income	$ 20,155	$ 21,459	$ 23,672	$ 24,006	$ 24,922	(6)%	(19)%
Noninterest income	12,816	3,922	10,582	15,077	26,352	NM	(51)%
Total revenues	32,971	25,381	34,254	39,083	51,274	30 %	(36)%
Provision for loan losses	17,485	16,227	37,073	10,172	15,426	8 %	13 %
Noninterest expense (b)	32,572	33,616	35,392	303,725	78,672	(3)%	(59)%
Loss before income taxes	(17,086)	(24,462)	(38,211)	(274,814)	(42,824)	30 %	60 %
Benefit for income taxes	(6,574)	(9,418)	(14,711)	(105,803)	(16,486)	30 %	60 %
Loss from continuing operations	(10,512)	(15,044)	(23,500)	(169,011)	(26,338)	30 %	60 %
Income/(loss) from discontinued operations, net of tax	430	(12)	108	487	(435)	NM	NM
Net loss	$ (10,082)	$ (15,056)	$ (23,392)	$ (168,524)	$ (26,773)	33 %	62 %

Total Consolidated
Net interest income	$ 161,382	$ 170,598	$ 173,465	$ 172,675	$ 171,929	(5)%	(6)%
Noninterest income	156,427	146,443	163,538	158,907	202,441	7 %	(23)%
Total revenues	317,809	317,041	337,003	331,582	374,370	*	(15)%
Provision for loan losses	15,000	15,000	40,000	15,000	8,000	*	88 %
Noninterest expense	240,540	271,361	263,169	527,177	321,994	(11)%	(25)%
Income/(loss) before income taxes	62,269	30,680	33,834	(210,595)	44,376	NM	40 %
Provision/(benefit) for income taxes	17,730	(12,914)	5,260	(88,178)	10,570	NM	68 %
Income/(loss) from continuing operations	44,539	43,594	28,574	(122,417)	33,806	2 %	32 %
Income/(loss) from discontinued operations, net of tax	430	(12)	108	487	(435)	NM	NM
Net income/(loss)	$ 44,969	$ 43,582	$ 28,682	$ (121,930)	$ 33,371	3 %	35 %

NM - Not meaningful

* Amount is less than one percent.

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

(a)	4Q12 includes $18.3 million related to Restructuring, Repositioning, and Efficiency initiatives, primarily severance related costs associated with the VSP.

(b)	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


											1Q13 Changes vs.
	1Q13		4Q12		3Q12		2Q12		1Q12		4Q12	1Q12

Income Statement (thousands)
Net interest income	$ 145,097		$ 153,070		$ 150,308		$ 147,767		$ 146,636		(5)%	(1)%
Provision/(provision credit) for loan losses	(2,485)		(1,227)		2,927		4,828		(7,426)		NM	67 %
Noninterest income:
NSF / Overdraft fees (a)	$ 10,031		$ 13,586		$ 13,038		$ 12,265		$ 11,284		(26)%	(11)%
Cash management fees	9,330		9,092		8,915		9,179		8,856		3 %	5 %
Debit card income	2,534		2,437		2,670		2,780		2,552		4 %	(1)%
Other	4,909		4,912		4,770		4,925		5,135		*	(4)%
Total deposit transactions and cash management	26,804		30,027		29,393		29,149		27,827		(11)%	(4)%
Brokerage, management fees and commissions	9,348		8,979		8,700		8,758		8,496		4 %	10 %
Trust services and investment management	6,343		5,995		6,071		6,493		5,824		6 %	9 %
Bankcard income	4,691		5,556		5,029		5,504		5,457		(16)%	(14)%
Other service charges	2,873		2,951		3,060		3,021		3,086		(3)%	(7)%
Miscellaneous revenue	9,085		10,566		11,982		12,112		9,362		(14)%	(3)%
Total noninterest income	$ 59,144		$ 64,074		$ 64,235		$ 65,037		$ 60,052		(8)%	(2)%
Noninterest expense:
Employee compensation, incentives, and benefits	50,590		51,014		50,526		50,957		51,080		(1)%	(1)%
Other (b)	78,123		93,086		91,115		92,421		89,563		(16)%	(13)%
Total noninterest expense	128,713		144,100		141,641		143,378		140,643		(11)%	(8)%
Income before income taxes	$ 78,013		$ 74,271		$ 69,975		$ 64,598		$ 73,471		5 %	6 %
Efficiency ratio (c)	63.02	%	66.36	%	66.02	%	67.38	%	68.05	%

Balance Sheet (millions)
Average loans	$ 12,237		$ 12,397		$ 12,221		$ 11,650		$ 11,533		(1)%	6 %
Average other earning assets	53		58		69		63		51		(9)%	4 %
Total average earning assets	12,290		12,455		12,290		11,713		11,584		(1)%	6 %
Average core deposits	14,560		14,445		14,295		14,396		13,974		1 %	4 %
Average other deposits	517		515		570		676		660		*	(22)%
Total average deposits	15,077		14,960		14,865		15,072		14,634		1 %	3 %
Total period-end deposits	15,225		15,142		14,783		15,183		15,338		1 %	(1)%
Total period-end assets	12,844		13,754		13,246		12,758		12,334		(7)%	4 %
Net interest margin (d)	4.84	%	4.94	%	4.92	%	5.13	%	5.14	%
Net interest spread	3.46		3.53		3.54		3.55		3.56
Loan yield	3.75		3.83		3.88		3.91		3.95
Deposit average yield	0.29		0.30		0.34		0.36		0.39

Key Statistics
Financial center locations	171		171		173		173		174		*	(2)%
Trust assets - total managed assets (millions)	$ 3,920		$ 3,948		$ 3,917		$ 3,837		$ 3,472		(1)%	13 %

NM - Not meaningful

* Amount is less than one percent.

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

(a)	1Q13 decline primarily attributable to seasonality in NSF fees.

(b)	1Q13 decrease largely attributable to a decline in allocated Pension expense resulting from the freeze of the pension plans on December 31, 2012.

(c)	Noninterest expense divided by total revenue.

(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 CAPITAL MARKETS

Quarterly, Unaudited


											1Q13 Changes vs.
	1Q13		4Q12		3Q12		2Q12		1Q12		4Q12	1Q12

Income Statement (thousands)
Net interest income	$ 3,847		$ 4,248		$ 4,753		$ 5,608		$ 5,680		(9)%	(32)%
Noninterest income:
Fixed income	67,953		65,560		74,488		68,399		99,112		4 %	(31)%
Other	8,659		6,872		6,329		6,569		7,663		26 %	13 %
Total noninterest income	76,612		72,432		80,817		74,968		106,775		6 %	(28)%
Noninterest expense	61,668		57,541		64,602		60,936		80,306		7 %	(23)%
Income before income taxes	$ 18,791		$ 19,139		$ 20,968		$ 19,640		$ 32,149		(2)%	(42)%

Efficiency ratio (a)	76.65	%	75.04	%	75.50	%	75.63	%	71.41	%
Fixed income average daily revenue	$ 1,133		$ 1,093		$ 1,182		$ 1,086		$ 1,599		4 %	(29)%

Balance Sheet (millions)
Average trading inventory	$ 1,309		$ 1,250		$ 1,190		$ 1,328		$ 1,277		5 %	3 %
Average other earning assets	770		618		576		669		695		25 %	11 %
Total average earning assets	2,079		1,868		1,766		1,997		1,972		11 %	5 %
Total period-end assets	2,956		2,466		2,848		2,554		2,693		20 %	10 %
Net interest margin (b)	0.75	%	0.95	%	1.12	%	1.15	%	1.18	%

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


											1Q13 Changes vs.
	1Q13		4Q12		3Q12		2Q12		1Q12		4Q12	1Q12

Income Statement (thousands)
Net interest income/(expense)	$ (7,717)		$ (8,179)		$ (5,268)		$ (4,706)		$ (5,309)		6 %	(45)%
Noninterest income	7,825		6,015		7,904		3,825		8,934		30 %	(12)%
Securities gains, net	30		-		-		-		328		NM	(91)%
Noninterest expense (a)	17,587		36,104		21,534		19,138		22,373		(51)%	(21)%
Loss before income taxes	$ (17,449)		$ (38,268)		$ (18,898)		$ (20,019)		$ (18,420)		54 %	5 %

Average Balance Sheet (millions)
Average loans	$ 226		$ 189		$ 183		$ 124		$ 137		20 %	65 %
Total earning assets	$ 3,959		$ 3,751		$ 3,735		$ 3,884		$ 4,021		6 %	(2)%
Net interest margin (b)	(.83)	%	(.85)	%	(.54)	%	(.50)	%	(.55)	%

NM - Not meaningful

(a)	4Q12 includes $18.3 million related to Restructuring, Repositioning, and Efficiency initiatives, primarily severance related costs associated with the VSP.

(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 NON-STRATEGIC

Quarterly, Unaudited


											1Q13 Changes vs.
	1Q13		4Q12		3Q12		2Q12		1Q12		4Q12	1Q12

Income Statement (thousands)
Net interest income	$ 20,155		$ 21,459		$ 23,672		$ 24,006		$ 24,922		(6)%	(19)%
Noninterest income:
Mortgage warehouse valuation	259		(1,850)		(3,470)		626		1,640		NM	(84)%
Service fees	12,145		12,967		13,778		14,984		17,202		(6)%	(29)%
Change in MSR value - runoff	(5,375)		(5,592)		(6,049)		(6,665)		(5,498)		4 %	2 %
Net hedging results	1,982		2,097		4,486		1,833		9,065		(5)%	(78)%
Miscellaneous revenue (a)	3,811		1,000		1,837		(766)		3,943		NM	(3)%
Total noninterest income	12,822		8,622		10,582		10,012		26,352		49 %	(51)%
Securities gains/(losses), net (b)	(6)		(4,700)		-		5,065		-		NM	NM
Noninterest expense:
Repurchase and foreclosure provision (c)	-		-		-		250,000		49,256		NM	NM
Other expenses (d)	32,572		33,616		35,392		53,725		29,416		(3)%	11 %
Total noninterest expense	32,572		33,616		35,392		303,725		78,672		(3)%	(59)%
Provision for loan losses (e)	17,485		16,227		37,073		10,172		15,426		8 %	13 %
Loss before income taxes	$ (17,086)		$ (24,462)		$ (38,211)		$ (274,814)		$ (42,824)		30 %	60 %

Average Balance Sheet (millions)
Loans	$ 3,634		$ 3,817		$ 4,008		$ 4,186		$ 4,371		(5)%	(17)%
Loans held-for-sale	354		344		333		330		316		3 %	12 %
Trading securities	17		19		20		23		26		(11)%	(35)%
Mortgage servicing rights	113		118		126		137		141		(4)%	(20)%
Other assets	257		266		286		304		336		(3)%	(24)%
Total assets	4,375		4,564		4,773		4,980		5,190		(4)%	(16)%
Net interest margin (f)	2.02	%	2.04	%	2.16	%	2.11	%	2.11	%
Efficiency ratio (g)	98.77	%	111.75	%	103.32	%	NM		153.43	%

Mortgage Warehouse - Period-end (millions)
Ending warehouse balance (loans held-for-sale)	$ 362		$ 353		$ 339		$ 336		$ 323		3 %	12 %

Key Servicing Metrics (h)
Ending servicing portfolio (millions) (i)	$ 17,055		$ 18,071		$ 19,149		$ 20,331		$ 21,610		(6)%	(21)%
Average servicing portfolio (millions) (i)	17,797		18,607		19,728		20,978		22,184		(4)%	(20)%
Average number of loans serviced (i)	104,874		110,175		115,987		121,818		128,068		(5)%	(18)%

Portfolio Product Mix (average)
GNMA (Ginnie)	2	%	2	%	2	%	3	%	3	%
FNMA/FHLMC (Fannie/Freddie)	31		32		33		35		35
Private	60		59		59		57		57
Sub-total	93		93		94		95		95
FHN permanent mortgage portfolio and warehouse	7		7		6		5		5
Total	100	%	100	%	100	%	100	%	100	%

Other Portfolio Statistics
Servicing cost per loan (annualized) (j)	$ 294.41		$ 279.08		$ 288.21		$ 280.71		$ 294.94
Servicing book value (bps) (k) (l)	69		68		68		68		71
90+ delinquency rate, excluding foreclosures (m)	11.20	%	10.89	%	10.61	%	10.94	%	11.54	%

NM - Not meaningful

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

(a)	1Q13 includes a $2.4 million gain from a LOCOM reversal associated with a TRUP loan payoff; 2Q12 includes a $2.3 million negative adjustment made as a result of contingencies related to prior servicing sales.

(b)	4Q12 includes a $4.7 million negative valuation adjustment related to an equity investment. 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 Fannie Mae.

(d)	2Q12 includes a $22.0 million loss accrual related to pending legal matters.

(e)	3Q12 increase largely associated with the implementation of regulatory guidance related to discharged bankruptcies.

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

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

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

(m)	Excludes delinquent second liens and HELOCs.

FHN CAPITAL HIGHLIGHTS

Quarterly, Unaudited


											1Q13 Changes vs.
(Dollars in thousands, except per share amounts)	1Q13		4Q12		3Q12		2Q12		1Q12		4Q12	1Q12

Tier 1 capital (a) (b)	$ 2,738,559		$ 2,640,776		$ 2,641,392		$ 2,626,688		$ 2,841,064		4 %	(4)%
Tier 2 capital (a)	$ 511,916		$ 571,232		$ 570,429		$ 570,159		$ 687,530		(10)%	(26)%
Total capital (a) (b)	$ 3,250,475		$ 3,212,008		$ 3,211,821		$ 3,196,847		$ 3,528,594		1 %	(8)%

Risk weighted assets (“RWA”) (a)	$ 20,278,500		$ 20,153,430		$ 20,082,979		$ 20,022,430		$ 19,783,405		1 %	3 %
Tier 1 ratio (a)	13.50	%	13.10	%	13.15	%	13.12	%	14.36	%
Tier 2 ratio (a)	2.53	%	2.84	%	2.84	%	2.85	%	3.48	%
Total capital ratio (a)	16.03	%	15.94	%	15.99	%	15.97	%	17.84	%

Tier 1 common ratio to risk weighted assets (a) (c)	10.59	%	10.65	%	10.69	%	10.65	%	11.86	%
Leverage ratio (a)	10.97		10.63		10.58		10.56		11.31
Total equity to total assets	10.33		9.83		9.84		9.86		10.41
Adjusted tangible common equity to risk weighted assets (“TCE/RWA”) (a) (c) (d)	9.88		9.93		10.03		9.97		10.88
Tangible common equity/tangible assets (“TCE/TA”) (c) (e)	8.21		8.11		8.13		8.13		8.70

* 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)	See Glossary of Terms for definition of ratios.

(e)	Calculated using period-end balances.

FHN ASSET QUALITY: CONSOLIDATED

Quarterly, Unaudited


											1Q13 Changes vs.
(Thousands)	1Q13		4Q12		3Q12		2Q12		1Q12		4Q12	1Q12

Allowance for Loan Losses Walk-Forward
Beginning reserve	$ 276,963		$ 281,744		$ 321,051		$ 346,016		$ 384,351		(2)%	(28)%
Provision (a)	15,000		15,000		40,000		15,000		8,000		*	88 %
Charge-offs (b) (c)	(36,100)		(31,177)		(87,022)		(49,728	)	(57,083	)	16 %	(37)%
Recoveries	9,355		11,396		7,715		9,763		10,748		(18)%	(13)%
Ending balance (Restricted - $3.7 million) (d)	$ 265,218		$ 276,963		$ 281,744		$ 321,051		$ 346,016		(4)%	(23)%
Reserve for unfunded commitments	3,439		4,145		4,572		4,434		5,358		(17)%	(36)%
Total allowance for loan losses plus reserve for unfunded commitments	$ 268,657		$ 281,108		$ 286,316		$ 325,485		$ 351,374		(4)%	(24)%

Allowance for Loan Losses
Regional Banking	$ 120,161		$ 128,210		$ 142,060		$ 156,060		$ 166,115		(6)%	(28)%
Non-Strategic	145,057		148,753		139,684		164,991		179,901		(2)%	(19)%
Corporate (e)	NM		NM		NM		NM		NM		NM	NM
Total allowance for loan losses	$ 265,218		$ 276,963		$ 281,744		$ 321,051		$ 346,016		(4)%	(23)%

Nonperforming Assets
Regional Banking
Nonperforming loans	$ 124,824		$ 131,834		$ 152,477		$ 178,650		$ 192,560		(5)%	(35)%
Foreclosed real estate (f)	13,142		13,726		16,000		17,334		18,047		(4)%	(27)%
Total Regional Banking	$ 137,966		$ 145,560		$ 168,477		$ 195,984		$ 210,607		(5)%	(34)%
Non-Strategic
Nonperforming loans	$ 129,240		$ 133,286		$ 150,635		$ 149,564		$ 158,580		(3)%	(19)%
Nonperforming loans held-for-sale before fair value adjustments (g)	129,730		110,567		94,265		89,535		100,841		17 %	29 %
Foreclosed real estate (f)	19,513		28,041		34,589		31,583		41,085		(30)%	(53)%
Total Non-Strategic	$ 278,483		$ 271,894		$ 279,489		$ 270,682		$ 300,506		2 %	(7)%
Corporate
Nonperforming loans	$ 1,936		$ 1,915		$ 2,426		$ 207		$ 207		1 %	NM
Total nonperforming assets	$ 418,385		$ 419,369		$ 450,392		$ 466,873		$ 511,320		*	(18)%

Net Charge-Offs
Regional Banking	$ 5,564		$ 12,623		$ 16,927		$ 14,883		$ 14,251		(56)%	(61)%
Non-Strategic	21,181		7,158		62,380		25,082		32,084		NM	(34)%
Total net charge-offs (b) (c)	$ 26,745		$ 19,781		$ 79,307		$ 39,965		$ 46,335		35 %	(42)%

Consolidated Key Ratios (h)
NPL %	1.61	%	1.60	%	1.85	%	2.03	%	2.20	%
NPA %	1.81		1.84		2.15		2.32		2.56
Net charge-offs % (b) (c)	0.67		0.48		1.92		1.01		1.16
Allowance / loans	1.67		1.66		1.71		1.98		2.17
Allowance / NPL	1.04	x	1.04	x	0.92	x	0.98	x	0.98	x
Allowance / NPA	0.92	x	0.90	x	0.79	x	0.85	x	0.84	x
Allowance / charge-offs (b) (c)	2.45	x	3.52	x	0.89	x	2.00	x	1.86	x

Other
Loans past due 90 days or more (i)	$ 87,177		$ 86,017		$ 82,953		$ 89,214		$ 97,672		1 %	(11)%
Guaranteed portion (i)	40,117		36,633		35,397		38,758		40,007		10 %	*
Foreclosed real estate from government insured loans	22,017		18,923		20,190		20,687		19,815		16 %	11 %
Period-end loans, net of unearned income (millions)	15,890		16,709		16,524		16,186		15,971		(5)%	(1)%
Remaining unfunded commitments (millions)	8,487		7,993		7,891		7,869		7,717		6 %	10 %

NM - Not meaningful

* Amount is less than one percent

(a)	3Q12 includes approximately $30 million of loan loss provision associated with the implementation of regulatory guidance related to discharged bankruptcies.

(b)	4Q12 charge-offs reflect lower loss estimate for discharged bankruptcies based on the loan-level data obtained from new appraisals in fourth quarter.

(c)	3Q12 includes approximately $40 million of charge-offs associated with the implementation of regulatory guidance related to discharged bankruptcies.

(d)	Restricted balances parenthetically presented are as of March 31, 2013. See Glossary of Terms for definition of restricted balances.

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

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

(g)	The average negative fair value mark taken in 1Q13 was approximately 53% of unpaid principal balance.

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

(i)	Includes loans held for sale.

FHN ASSET QUALITY: CONSOLIDATED

Quarterly, Unaudited


											1Q13 Changes vs.
	1Q13		4Q12		3Q12		2Q12		1Q12		4Q12	1Q12

Key Portfolio Details
C&I
Period-end loans ($ millions)	$ 8,091		$ 8,797		$ 8,466		$ 7,982		$ 7,705		(8)%	5%
30+ Delinq. % (a)	0.17	%	0.22	%	0.30	%	0.29	%	0.39	%
NPL %	1.40		1.39		1.78		1.97		2.00
Charge-offs % (qtr. annualized) (b)	0.10		0.24		0.25		0.42		0.08
Allowance / loans %	1.06	%	1.09	%	1.26	%	1.39	%	1.55	%
Allowance / charge-offs (b)	10.94	x	4.84	x	5.17	x	3.44	x	19.06	x

Income CRE
Period-end loans ($ millions)	$ 1,063		$ 1,110		$ 1,162		$ 1,225		$ 1,247		(4)%	(15)%
30+ Delinq. % (a)	0.44	%	0.41	%	0.21	%	0.53	%	0.73	%
NPL %	2.53		2.97		4.04		4.67		5.59
Charge-offs % (qtr. annualized)	0.37		0.30		0.79		0.52		2.41
Allowance / loans %	1.11	%	1.43	%	1.94	%	2.39	%	2.64	%
Allowance / charge-offs	2.88	x	4.48	x	2.40	x	4.53	x	1.09	x

Residential CRE
Period-end loans ($ millions)	$ 54		$ 58		$ 69		$ 89		$ 100		(7)%	(46)%
30+ Delinq. % (a)	-	%	-	%	1.19	%	6.69	%	1.06	%
NPL % (c)	21.98		21.63		24.46		43.53		43.77
Charge-offs % (qtr. annualized)	NM		NM		4.29		5.74		5.70
Allowance / loans % (c)	6.36	%	7.01	%	7.00	%	13.69	%	13.11	%
Allowance / charge-offs	NM		NM		1.42	x	2.25	x	2.06	x

Consumer Real Estate
Period-end loans ($ millions) (Restricted and secured real estate - $386.4 million) (d)	$ 5,590		$ 5,689		$ 5,735		$ 5,855		$ 5,859		(2)%	(5)%
30+ Delinq. % (a)	1.21	%	1.36	%	1.46	%	1.39	%	1.52	%
NPL % (e)	1.21		1.13		0.96		0.70		0.77
Charge-offs % (qtr. annualized) (f) (g)	1.33		0.68		4.54		1.64		2.05
Allowance / loans %	2.35	%	2.27	%	2.02	%	2.28	%	2.42	%
Allowance / charge-offs (f) (g)	1.75	x	3.31	x	0.44	x	1.38	x	1.17	x

Permanent Mortgage
Period-end loans ($ millions) (Restricted and secured real estate - $13.0 million) (d) (h)	$ 793		$ 766		$ 806		$ 756		$ 789		4 %	1 %
30+ Delinq. % (a)	2.16	%	2.28	%	2.86	%	1.64	%	2.20	%
NPL %	4.37		4.27		4.22		4.26		4.65
Charge-offs % (qtr. annualized)	1.64		0.95		1.06		1.26		2.04
Allowance / loans %	3.21	%	3.26	%	3.17	%	3.85	%	4.13	%
Allowance / charge-offs	1.93	x	3.32	x	2.98	x	2.99	x	1.97	x

Credit Card and Other
Period-end loans ($ millions)	$ 299		$ 289		$ 286		$ 279		$ 271		3%	10%
30+ Delinq. % (a)	1.25	%	1.45	%	1.43	%	1.28	%	1.26	%
NPL %	0.57		0.59		0.64		0.74		0.79
Charge-offs % (qtr. annualized)	3.25		4.00		3.37		3.82		2.22
Allowance / loans %	2.38	%	2.39	%	2.22	%	2.27	%	2.27	%
Allowance / charge-offs	0.75	x	0.60	x	0.68	x	0.60	x	0.99	x

NM - Not meaningful

* Amount is less than one percent

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

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

(b)	1Q12 includes recoveries of $4.8 million.

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

(d)	Restricted and secured loan balances parenthetically presented are as of March 31, 2013.

(e)	NPL levels affected by the implementation of regulatory guidance related to discharged bankruptcies in 3Q12.

(f)	4Q12 charge-offs reflect favorable adjustment for lower loss estimate for discharged bankruptcies based on the loan-level data obtained from new appraisals in fourth quarter.

(g)	3Q12 includes the impact of charge-offs associated with the implementation of regulatory guidance related to discharged bankruptcies.

(h)	1Q13 and 3Q12 increases relate to exercise of cleanup calls.

FHN ASSET QUALITY: REGIONAL BANKING

Quarterly, Unaudited


											1Q13 Changes vs.
	1Q13		4Q12		3Q12		2Q12		1Q12		4Q12	1Q12

Total Regional Banking
Period-end loans ($ millions)	$ 12,127		$ 12,819		$ 12,462		$ 11,962		$ 11,582		(5)%	5 %
30+ Delinq. % (a)	0.36	%	0.38	%	0.45	%	0.51	%	0.59	%
NPL %	1.03		1.03		1.22		1.49		1.66
Charge-offs % (qtr. annualized)	0.18		0.41		0.55		0.51		0.50
Allowance / loans %	0.99	%	1.00	%	1.14	%	1.30	%	1.43	%
Allowance / charge-offs	5.32	x	2.55	x	2.11	x	2.61	x	2.90	x

Key Portfolio Details
C&I
Period-end loans ($ millions)	$ 7,580		$ 8,262		$ 7,929		$ 7,441		$ 7,160		(8)%	6 %
30+ Delinq. % (a)	0.17	%	0.23	%	0.32	%	0.31	%	0.41	%
NPL %	0.89		0.85		0.97		1.11		1.12
Charge-offs % (qtr. annualized) (b)	0.10		0.26		0.29		0.45		0.09
Allowance / loans %	0.92	%	0.95	%	1.05	%	1.14	%	1.29	%
Allowance / charge-offs (b)	8.71		3.87	x	3.71	x	2.64	x	14.78	x

Income CRE
Period-end loans ($ millions)	$ 1,048		$ 1,095		$ 1,141		$ 1,183		$ 1,204		(4)%	(13)%
30+ Delinq. % (a)	0.45	%	0.41	%	0.21	%	0.55	%	0.76	%
NPL %	2.32		2.78		3.78		4.34		5.28
Charge-offs % (qtr. annualized)	0.40		0.37		0.83		0.53		1.88
Allowance / loans %	1.00	%	1.33	%	1.81	%	2.14	%	2.42	%
Allowance / charge-offs	2.42	x	3.38	x	2.12	x	3.99	x	1.28	x

Residential CRE
Period-end loans ($ millions)	$ 50		$ 53		$ 61		$ 79		$ 86		(6)%	(42)%
30+ Delinq. % (a)	-	%	-	%	1.34	%	7.53	%	1.22	%
NPL % (c)	17.66		17.59		19.08		40.77		41.83
Charge-offs % (qtr. annualized)	NM		NM		5.07		2.26		6.64
Allowance / loans % (c)	6.64	%	7.19	%	7.32	%	14.72	%	14.07	%
Allowance / charge-offs	NM		NM		1.26	x	6.24	x	2.01	x

Consumer Real Estate
Period-end loans ($ millions)	$ 3,152		$ 3,121		$ 3,047		$ 2,981		$ 2,861		1 %	10 %
30+ Delinq. % (a)	0.68	%	0.65	%	0.75	%	0.76	%	0.86	%
NPL % (d)	0.74		0.67		0.63		0.39		0.45
Charge-offs % (qtr. annualized) (e)	0.07		0.51		0.78		0.38		0.56
Allowance / loans %	0.96	%	0.81	%	0.91	%	0.94	%	0.92	%
Allowance / charge-offs (e)	13.36	x	1.59	x	1.18	x	2.48	x	1.66	x

Credit Card, Permanent Mortgage, and Other
Period-end loans ($ millions)	$ 297		$ 288		$ 284		$ 278		$ 271		3 %	10 %
30+ Delinq. % (a)	1.40	%	1.45	%	1.40	%	1.32	%	1.40	%
NPL %	0.34		0.35		0.37		0.15		0.03
Charge-offs % (qtr. annualized)	2.94		3.42		2.92		2.99		2.38
Allowance / loans %	2.26	%	2.21	%	2.13	%	2.26	%	2.20	%
Allowance / charge-offs	0.79	x	0.65	x	0.75	x	0.76	x	0.91	x

ASSET QUALITY: CORPORATE

Permanent Mortgage
Period-end loans ($ millions) (f)	$ 229		$ 180		$ 201		$ 119		$ 127		27 %	80 %
30+ Delinq. % (a)	2.55	%	1.83	%	2.12	%	0.49	%	1.33	%
NPL % (d)	0.84		1.06		1.21		0.17		0.16
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

* 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 $4.6 million.

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

(d)	NPL levels affected by the implementation of regulatory guidance related to discharged bankruptcies in 3Q12.

(e)	3Q12 includes the impact of charge-offs associated with the implementation of regulatory guidance related to discharged bankruptcies.

(f)	1Q13 and 3Q12 increases relate to exercise of cleanup calls.

FHN ASSET QUALITY: NON-STRATEGIC

Quarterly, Unaudited


											1Q13 Changes vs.
	1Q13		4Q12		3Q12		2Q12		1Q12		4Q12		1Q12

Total Non-Strategic
Period-end loans ($ millions)	$ 3,534		$ 3,710		$ 3,861		$ 4,105		$ 4,262		(5)	%	(17)%
30+ Delinq. % (a)	1.62	%	1.92	%	2.06	%	1.72	%	1.89	%
NPL %	3.66		3.59		3.90		3.64		3.72
Charge-offs % (qtr. annualized)	2.36		0.75		6.19		2.41		2.95
Allowance / loans %	4.10	%	4.01	%	3.62	%	4.02	%	4.22	%
Allowance / charge-offs	1.69	x	5.22x		0.56x		1.64x		1.39x

Key Portfolio Details
C&I
Period-end loans ($ millions)	$ 512		$ 535		$ 537		$ 541		$ 546		(4)	%	(6)%
30+ Delinq. % (a)	0.08	%	-	%	*		-	%	0.12	%
NPL %	8.95		9.82		13.65		13.77		13.58
Charge-offs % (qtr. annualized)	NM		NM		NM		*		NM
Allowance / loans %	3.24	%	3.37	%	4.37	%	4.78	%	4.94	%
Allowance / charge-offs	NM		NM		NM		NM		NM

Income CRE
Period-end loans ($ millions)	$ 15		$ 15		$ 20		$ 42		$ 43		*		(65)%
30+ Delinq. % (a)	-	%	-	%	-	%	-	%	-	%
NPL %	17.34		17.16		18.84		14.07		14.45
Charge-offs % (qtr. annualized)	NM		NM		NM		0.30		15.96
Allowance / loans %	8.84	%	9.02	%	9.64	%	9.51	%	9.00	%
Allowance / charge-offs	NM		NM		NM		31.70x		0.50x

Residential CRE
Period-end loans ($ millions)	$ 4		$ 5		$ 8		$ 10		$ 13		(20)	%	(69)%
30+ Delinq. % (a)	-	%	-	%	0.07	%	-	%	-	%
NPL %	80.40		63.63		65.97		65.64		56.20
Charge-offs % (qtr. annualized)	NM		NM		NM		30.43		1.59
Allowance / loans %	2.49	%	5.13	%	4.58	%	5.40	%	6.96	%
Allowance / charge-offs	NM		NM		NM		0.15x		2.82x

Consumer Real Estate
Period-end loans ($ millions) (Restricted and secured real estate - $386.4 million) (b)	$ 2,438		$ 2,568		$ 2,689		$ 2,874		$ 2,998		(5)	%	(19)%
30+ Delinq. % (a)	1.89	%	2.23	%	2.26	%	2.04	%	2.16	%
NPL % (c)	1.83		1.69		1.34		1.01		1.07
Charge-offs % (qtr. annualized) (d) (e)	2.90		0.86		8.58		2.90		3.41
Allowance / loans %	4.15	%	4.04	%	3.28	%	3.67	%	3.85	%
Allowance / charge-offs (d) (e)	1.39	x	4.51x		0.37x		1.24x		1.10x

Permanent Mortgage
Period-end loans ($ millions) (Restricted and secured real estate - $13.0 million) (b)	$ 548		$ 569		$ 588		$ 619		$ 642		(4)	%	(15)%
30+ Delinq. % (a)	1.91	%	2.40	%	3.09	%	1.79	%	2.29	%
NPL %	5.78		5.23		5.20		5.14		5.67
Charge-offs % (qtr. annualized)	2.35		1.29		1.42		1.54		2.51
Allowance / loans %	4.62	%	4.36	%	4.32	%	4.64	%	5.02	%
Allowance / charge-offs	1.93x		3.30x		2.96x		2.95x		1.95x

Other Consumer
Period-end loans ($ millions)	$ 17		$ 18		$ 19		$ 19		$ 20		(6)	%	(15)%
30+ Delinq. % (a)	2.26	%	2.82	%	3.59	%	3.52	%	3.04	%
NPL %	9.61		9.23		9.41		9.32		10.39
Charge-offs % (qtr. annualized)	5.44		9.49		6.92		11.66		NM
Allowance / loans %	2.78	%	3.64	%	2.37	%	2.13	%	2.68	%
Allowance / charge-offs	0.50	x	0.38x		0.35x		0.18x		NM

NM - Not meaningful

* Amount is less than one percent

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

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

(b)	Restricted and secured loan balances parenthetically presented are as of March 31, 2013.

(c)	NPL levels affected by the implementation of regulatory guidance related to discharged bankruptcies in 3Q12.

(d)	4Q12 charge-offs reflect favorable adjustment for lower loss estimate for discharged bankruptcies based on the loan-level data obtained from new appraisals in fourth quarter.

(e)	3Q12 includes the impact of charge-offs associated with the implementation of regulatory guidance related to discharged bankruptcies.

FHN ROLLFORWARDS OF NONPERFORMING LOANS AND ORE INVENTORY

Unaudited


(Millions)	1Q13		4Q12		3Q12		2Q12		1Q12
Commercial NPL Rollforward
Beginning NPLs		$ 168		$ 214		$ 253		$ 268		$ 277
+ Additions		9		10		5		21		23
+ Principal increase		-		-		-		1		1
- Resolutions and payments		(22)		(29)		(18)		(20)		(19)
- Net charge-offs		(2)		(5)		(8)		(12)		(11)
- Transfer to ORE		(1)		-		(2)		(1)		(3)
- Upgrade to accrual		-		(22)		(16)		(4)		-
Ending NPLs		$ 152		$ 168		$ 214		$ 253		$ 268
Certain previously reported amounts have been reclassified to agree with current presentation.
(Millions)	1Q13		4Q12		3Q12		2Q12		1Q12
ORE Inventory Rollforward (a)
Beginning balance		$ 41.8		$ 50.6		$ 48.9		$ 59.1		$ 68.9
Valuation adjustments		(1.0)		(1.5)		(2.7)		(2.1)		(3.1)
Adjusted balance		40.8		49.1		46.2		57.0		65.8
+ New ORE		1.2		7.5		11.9		6.0		8.1
+ Capitalized expenses		-		0.1		0.2		0.2		0.2
Disposals:
- Single transactions		(9.3)		(13.6)		(7.7)		(12.6)		(13.7)
- Bulk sales		-		(1.3)		-		(1.7)		(1.3)
Ending balance		$ 32.7		$ 41.8		$ 50.6		$ 48.9		$ 59.1

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

FHN: PORTFOLIO METRICS

Unaudited


C&I Portfolio: $8.1 Billion (50.9% of Total Loans) as of March 31, 2013	% OS
General Corporate, Commercial, and Business Banking Loans		80%
Loans to Mortgage Companies		14%
Trust Preferred Loans		5%
Bank Holding Company Loans		1%

Consumer Real Estate (primarily Home Equity) Portfolio: $5.6 Billion (35.2% of Total Loans)


Origination LTV and FICO for Portfolio as of March 31, 2013	Loan-to-Value

(excludes whole loan insurance)	<=60%	60% - <=80%	80% - 90%	>90%
FICO score greater than or equal to 740	11%	23%	16%	7%
FICO score 720-739	2%	4%	4%	2%
FICO score 700-719	1%	4%	4%	2%
FICO score 660-699	2%	5%	4%	3%
FICO score 620-659	-%	1%	1%	1%
FICO score less than 620	-%	1%	-%	1%


Origination LTV and FICO for Portfolio - Regional Banking as of March 31, 2013	Loan-to-Value

(excludes whole loan insurance)	<=60%	60% - <=80%	80% - 90%	>90%
FICO score greater than or equal to 740	13%	24%	18%	9%
FICO score 720-739	1%	4%	3%	2%
FICO score 700-719	1%	3%	2%	2%
FICO score 660-699	2%	4%	3%	2%
FICO score 620-659	1%	1%	1%	1%
FICO score less than 620	1%	1%	1%	1%


Origination LTV and FICO for Portfolio - Non-Strategic as of March 31, 2013	Loan-to-Value

(excludes whole loan insurance)	<=60%	60% - <=80%	80% - 90%	>90%
FICO score greater than or equal to 740	8%	22%	15%	5%
FICO score 720-739	2%	6%	5%	2%
FICO score 700-719	2%	6%	5%	2%
FICO score 660-699	2%	5%	4%	3%
FICO score 620-659	-%	1%	1%	1%
FICO score less than 620	-%	-%	-%	1%

Consumer Real Estate Portfolio Detail:


		Origination Characteristics

Vintage	Balances ($B)	W/A Age (mo.)	CLTV	FICO	% TN	% 1st lien
pre-2003	$ 0.1	136	77%	708	43%	32%
2003	$ 0.3	117	75%	728	32%	38%
2004	$ 0.5	104	79%	724	21%	27%
2005	$ 0.8	92	81%	729	17%	16%
2006	$ 0.6	81	78%	733	22%	17%
2007	$ 0.8	69	80%	738	25%	18%
2008	$ 0.4	58	76%	746	71%	50%
2009	$ 0.2	46	72%	750	87%	58%
2010	$ 0.3	32	80%	750	92%	74%
2011	$ 0.5	20	77%	760	90%	86%
2012	$ 0.9	9	76%	763	89%	91%
2013	$ 0.2	1	75%	760	89%	91%
Total	$ 5.6	62	78%	742 (a)	51%	46%
(a) 742 average portfolio origination FICO; 733 weighted average portfolio FICO (refreshed).

Permanent Mortgage Portfolio: $0.8 Billion (5.0% of Total Loans) (a) (b)


	Loan-to-Value
	<= 60%	60% - <=80%	80% - 90%	>90%

Origination LTV for Portfolio as of March 31, 2013 :	19%	71%	5%	5%
(a) Documentation type: 72% full doc; 23 stated; 5% other.
(b) Product type: 73% jumbo; 11% Alt A; 16% other.

FHN NON-GAAP TO GAAP RECONCILIATION

Quarterly, Unaudited


(Thousands)	1Q13			4Q12			3Q12			2Q12			1Q12
Tangible Common Equity (Non-GAAP)
(A) Total equity (GAAP)		$ 2,599,727			$ 2,509,206			$ 2,531,888			$ 2,514,406			$ 2,674,173
Less: Noncontrolling interest (a)		295,257			295,165			295,165			295,165			295,165
Less: Preferred stock		95,624			-			-			-			-
(B) Total common equity		$ 2,208,846			$ 2,214,041			$ 2,236,723			$ 2,219,241			$ 2,379,008
Less: Intangible assets (GAAP) (b)		156,014			156,942			157,921			158,901			159,880
(C) Tangible common equity (Non-GAAP)		$ 2,052,832			$ 2,057,099			$ 2,078,802			$ 2,060,340			$ 2,219,128
Less: Unrealized gains on AFS securities, net of tax		48,591			55,250			63,923			63,679			67,077
(D) Adjusted tangible common equity (Non-GAAP) (c)		$ 2,004,241			$ 2,001,849			$ 2,014,879			$ 1,996,661			$ 2,152,051

Tangible Assets (Non-GAAP)
(E) Total assets (GAAP)		$ 25,166,427			$ 25,520,140			$ 25,739,830			$ 25,492,955			$ 25,678,969
Less: Intangible assets (GAAP) (b)		156,014			156,942			157,921			158,901			159,880
(F) Tangible assets (Non-GAAP)		$ 25,010,413			$ 25,363,198			$ 25,581,909			$ 25,334,054			$ 25,519,089

Period-end Shares Outstanding
(G) Period-end shares outstanding		241,225			243,598			247,134			248,810			252,667

Tier 1 Common (Non-GAAP)
(H) Tier 1 capital (d) (e)		$ 2,738,559			$ 2,640,776			$ 2,641,392			$ 2,626,688			$ 2,841,064
Less: Noncontrolling interest - FTBNA preferred stock (a) (f)		294,816			294,816			294,816			294,816			294,816
Less: Preferred Stock		95,624			-			-			-			-
Less: Trust preferred (g)		200,000			200,000			200,000			200,000			200,000
(I) Tier 1 common (Non-GAAP)		$ 2,148,119			$ 2,145,960			$ 2,146,576			$ 2,131,872			$ 2,346,248

Risk Weighted Assets
(J) Risk weighted assets (d) (e)		$ 20,278,500			$ 20,153,430			$ 20,082,979			$ 20,022,430			$ 19,783,405

Ratios
(C)/(F) Tangible common equity to tangible assets (“TCE/TA”) (Non-GAAP)		8.21	%		8.11	%		8.13	%		8.13	%		8.70 %
(A)/(E) Total equity to total assets (GAAP)		10.33	%		9.83	%		9.84	%		9.86	%		10.41 %
(C)/(G) Tangible book value per common share (Non-GAAP)		$ 8.51			$ 8.44			$ 8.41			$ 8.28			$ 8.78
(B)/(G) Book value per common share (GAAP)		$ 9.16			$ 9.09			$ 9.05			$ 8.92			$ 9.42
(I)/(J) Tier 1 common to risk weighted assets (Non-GAAP) (d)		10.59	%		10.65	%		10.69	%		10.65	%		11.86 %
(H)/(E) Tier 1 capital to total assets (GAAP) (d)		10.88	%		10.35	%		10.26	%		10.30	%		11.06 %
(D)/(J) Adjusted tangible common equity to risk weighted assets (“TCE/RWA”) (Non-GAAP) (c) (d)		9.88	%		9.93	%		10.03	%		9.97	%		10.88 %

Net interest income adjusted for impact of fully taxable equivalent (“FTE”) (Non-GAAP)
Regional Banking
Net interest income (GAAP)		$ 145,097			$ 153,070			$ 150,308			$ 147,767			$ 146,636
FTE adjustment		1,670			1,645			1,555			1,580			1,493
Net interest income adjusted for impact of FTE (Non-GAAP)		$ 146,767			$ 154,715			$ 151,863			$ 149,347			$ 148,129

Capital Markets
Net interest income (GAAP)		$ 3,847			$ 4,248			$ 4,753			$ 5,608			$ 5,680
FTE adjustment		109			186			175			160			140
Net interest income adjusted for impact of FTE (Non-GAAP)		$ 3,956			$ 4,434			$ 4,928			$ 5,768			$ 5,820

Corporate
Net interest income (GAAP)		$ (7,717)			$ (8,179)			$ (5,268)			$ (4,706)			$ (5,309)
FTE adjustment		8			11			22			16			26
Net interest income adjusted for impact of FTE (Non-GAAP)		$ (7,709)			$ (8,168)			$ (5,246)			$ (4,690)			$ (5,283)

Non-Strategic
Net interest income (GAAP)		$ 20,155			$ 21,459			$ 23,672			$ 24,006			$ 24,922
FTE adjustment		-			-			-			-			-
Net interest income adjusted for impact of FTE (Non-GAAP)		$ 20,155			$ 21,459			$ 23,672			$ 24,006			$ 24,922

Total Consolidated
Net interest income (GAAP)		$ 161,382			$ 170,598			$ 173,465			$ 172,675			$ 171,929
FTE adjustment		1,787			1,842			1,752			1,756			1,659
Net interest income adjusted for impact of FTE (Non-GAAP)		$ 163,169			$ 172,440			$ 175,217			$ 174,431			$ 173,588

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 Common Equity to Risk Weighted Assets: Common equity excluding intangible assets and unrealized gains/losses on available-for-sale securities divided by risk weighted assets.

Core Businesses: 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.

Discharged Bankruptcies: Residential real estate secured loans where the borrower has been discharged from personal liability through bankruptcy proceedings. Such loans that have not been reaffirmed by the borrower are charged down to estimated collateral value less disposition costs (net realizable value) and are reported as nonaccuring TDRs.

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: Restricted loans that are assets of a consolidated variable interest entity that can be used only to settle obligations of the consolidated variable interest entity.

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.

Voluntary Separation Program (“VSP”): A program launched in October 2012 applicable to selected employees primarily in functions not managing customer relations. Selected employees could elect to participate depending on length of service and salary. Costs associated with the VSP are included in restructuring and recorded in Employee compensation, incentives, and benefits on the Consolidated Statements of Income.

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

First Quarter 2013 Earnings

April 19, 2013

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:

1Q13 Accomplishments

Optimize

Business Mix for

Profitability &

Returns

Improve

Productivity

& Efficiency

Mortgage repurchase provision of $0 in the past 3 quarters

No change in outlook for future loss content

Consolidated expenses declined 25%

Efficiency ratio improved to 76% from 86%

Executing $50mm of cost saves in 2013; annualized target of $925mm to $950mm of total

expenses by year end 2013

Regional Banking revenue per FTE up 2% to $83k

Tier 1 ratio at 13.5%

Tier 1 Common at 10.6%

TCE/TA at 8.2%

Repurchased $30mm or 2.8 million common shares in 1Q13, resulting in $205mm or 23.2

million total shares repurchased since October 2011

Volume weighted average price per share of $10.57 in 1Q13 and $8.81 since October 2011

Core Businesses’

ROTCE at 12.5% and ROA at 1.08%

Regional Banking pre-provision net revenue at $76mm, up 14%

Regional Banking average loans up 6% and average core deposits up 4%

Consolidated average loans flat, despite Non-Strategic run-off of 17%

Capital Markets’

fixed income average daily revenues at $1.13mm

Net charge-offs declined 42%

Nonperforming assets down 18%

Deploy Capital

In Disciplined

Manner

All data is 1Q13 compared to 1Q12 unless otherwise noted. All non-GAAP numbers are reconciled in the appendix.

Core Businesses include the Regional Banking, Capital Markets, and Corporate segments. Core ROTCE and ROA are annualized. Core ROTCE and ROA are non-GAAP numbers.

Pre-tax pre-provision net revenue is a non-GAAP number. ³Tier 1 and Tier 1 Common: current quarter is estimate; Tier 1 Common, TCE, and TA are non-GAAP numbers.

Does not include an average $0.02 per share broker commission paid in 1Q13 and an average $0.03 per share broker commission paid since October 2011.

Current Relative Positioning:

Core Businesses’

Key Profitability Drivers

Returns

Key

Bonefish

Metrics

ROTCE

ROA

Capital ratios remain above

normalized Bonefish capital levels

NIM

NCO %

Fee Income %

Efficiency Ratio

Significant latent income embedded

in balance sheet

A 200bps

rise

rates

would

have

improved

NII

~$70mm

annually

Better than long-term Bonefish

targets

Capital Markets significant

differentiator vs peers

In line with long-term Bonefish

targets

Core efficiency ratio of 73% improved

from 82% in 4Q12

A 200bps rise in rates would have

resulted

efficiency

ratio

69%

FHN In Line/Favorable

Peer

Median

FHN Unfavorable

FHN data as of 1Q13, unless otherwise noted. All non-GAAP numbers are reconciled in the appendix.

Core Businesses include Regional Banking, Capital Markets, and Corporate. All core data is non-GAAP.

ROTCE, ROA, NIM, and NCO / Average Loans are annualized. ROTCE is a non-GAAP number. ³Peers defined in appendix as of 4Q12.

All else equal, a 200bps

rate shock results in ~$70mm increase in Core Businesses’ annual NII (as shown on slide 8), as Non-Strategic is interest rate neutral. Core estimates are non-GAAP.

FINANCIAL RESULTS

Consolidated Financial Results

Net income available to common shareholders up 1%

to $41mm, with diluted EPS of $0.17

Pre-tax,

pre-provision

net

revenue

69%

Revenue

flat

while

expense

down

11%

Efficiency

ratio

improved

from

84%

76%

Total provision stable at $15mm

Net

charge-offs

$27mm

Regional

Banking

NCOs

$6mm

18bps

Total average loans down 2%

Loans

mortgage

companies

down

from

record high

Non-Strategic loans down 5%

Numbers and percentages may not add to total due to rounding. All data is 1Q13 compared to 4Q12 unless otherwise noted.

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

Net charge off % is annualized.

NM –

Not meaningful. *Amount is less than 1%.

Linked Quarter Comparison

4Q12

1Q12

Net interest income

$161

$171

$172

(5)%

(6)%

Noninterest income

$156

$146

$202

(23)%

Total revenue

$318

$317

$374

(15)%

Noninterest expense

$241

$271

$322

(11)%

(25)%

PPNR

$77

$46

$52

69%

48%

Provision

$15

88%

Pre-tax income

$62

$31

$44

40%

Taxes

$18

($13)

$11

68%

Net income

$45

$44

$33

35%

Net income available

to common shareholders

$41

$31

34%

Diluted shares

(in millions)

243

246

255

(1)%

(5)%

Diluted EPS

$0.17

$0.12

42%

Total average loans

$16.1

$16.4

$16.0

(2)%

Total average deposits

$16.3

$16.4

(1)%

Income Statement

($ in millions)

Common Stock Data

Balance Sheet

billions)

4Q12

1Q12

1Q13

1Q13 vs

1Q13 Segment Highlights

Drivers and Impacts

Revenue

Expense

Net Income¹

1Q13

Change

1Q12

4Q12

$204

$129

$80

$62

$18

$33

$285

$208

$318

$241

-$13

-$7

-$15

-$19

-$30

-$1

-$31

Regional

Banking

$47

Capital

Markets

$12

$20

Corporate

$(4)

$(9)

Core

Businesses

$56

$57

Non-

Strategic

$(15)

$(27)

Total

$50

$12

$(10)

$51

$(10)

$41

$31

Mortgage repurchase provision expense of $0

Fixed income ADR at $1.13mm in 1Q13 vs

$1.09mm in 4Q12

1Q13: $2.4mm loan pay off related gain

4Q12: $(4.7)mm valuation adjustment

Decrease driven by realization of efficiency

initiatives and lower pension, salary &

seasonal advertising expense

Higher from increased variable compensation

& FICA reset in 1Q13

Lower NII from reduction in loan balances

and seasonal decrease in fees in 1Q13

Decrease in restructuring charges in 1Q13

compared to 4Q12

$ in millions

$mm

1Q13

Per Share

Impact

$0.20

$0.05

$(0.04)

$0.21

$(0.04)

$0.17

-6%

30%

-2%

-11%

-51%

-13%

-3%

-11%

Numbers may not add to total due to rounding. Core Businesses include the Regional Banking, Capital Markets, and Corporate segments.

Corporate, Core Businesses, and Consolidated show net income available to common, which reflects $3mm of noncontrolling interest in each quarter and $1mm of preferred stock dividends in 1Q13.

Segment EPS impacts are non-GAAP numbers and reconciled in the table. EPS impacts are calculated using the 1Q13 net income column divided by the 243mm diluted common shares outstanding.

Revenue and expense are as of 1Q13. Revenue includes securities gain / losses.

LQ: Linked quarter; 1Q13 compared to 4Q12.

Net Interest Income and Net Interest Margin Drivers

Consolidated Yields and Rates

Net

Interest

Income

Sensitivity

Impact

2013 NIM Outlook

Lower Loan Yields Primarily Due To Lower

Loans to Mortgage Companies Balances

-$4.5

-5bps

1Q13

$161.4

2.95%

NII and NIM Change Drivers

NII

NIM

($ in millions)

4Q12

$170.6

3.09%

Seasonal Decrease in Loan Fees

-$1.5

-3bps

Lower Reinvestment Rates

in Securities Portfolio

-$1.0

-2bps

$0.2

Lower Deposit Costs

1bps

Higher Customer-Driven Balances at Fed

-2bps

Capital Markets’

Inventory

-$0.4

-3bps

Fewer Day Count

-$2.0

Continued modest loan yield declines

Lower reinvestment rates in securities portfolios

Decline somewhat offset by deposit costs

Earning assets relatively stable

Current NIM expectations in the ~2.85%-2.95% range

No expected material actions to reduce asset sensitivity

364

361

365

359

360

354

180

270

360

4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

Spread¹

Deposit Rate

Loan Yield

450bps

Numbers may not add to total due to rounding.

Spread is loan yield minus deposit rate.

Data is as of 1Q13 and is non-GAAP. Long End +50 assumes yield curve spreads widen ~50bps. Long end -50 assumes yield curve spreads compress ~50bps.

Bps impact assumes increase in Fed Funds rate. Non-Strategic is interest rate neutral, thus nearly all the sensitivity impact would be allocated to the Core Businesses.

Building strong balance sheet

Total average deposits increase reflects inflow from

commercial customers

Average loans relatively steady

Strength in asset based lending and consumer loans

Low utilization rates

Competitive lending environment

Pipeline up 33% linked quarter and 10% from 1Q12

Strength in Core Businesses:

Regional Banking Balance Sheet

Numbers/percentages may not add due to rounding.

Regional Banking Commercial Loan

Pipeline & Fundings

Regional Banking Total Average Loans & Deposits

$1.2B

$16B

Regional Banking Average Loans

Consumer

CRE

C&I ( Loans to Mortgage Companies)

$15B

$10

$12

$14

1Q12

4Q12

1Q13

Total Average Deposits

Total Average Loans

$0.0

$0.2

$0.4

$0.6

$0.8

$1.0

1Q12

4Q12

1Q13

Pipeline

Funded

$12

1Q12

4Q12

1Q13

Agency Mortgage Repurchase-Related Expenses

Total

Pipeline

Repurchase

Requests

Received third update of data in February from Fannie

and still expect future repurchase provision to be

immaterial

1Q13 mortgage repurchase provision expense of $0

Pipeline declined 22% linked quarter, and down 32%

year over year to $259mm

New requests up 10% linked quarter reflecting

anticipated acceleration of requests; total expected

aggregate requests remain unchanged

Sold mortgage origination platform in August 2008

Key Assumptions

Assumption

1Q13

Metrics

Rescission Rates

45% -

55%

60%

No material change from Fannie in the scope of their loans

selected for repurchase/make-whole review

Loss Severity

50% -

60%

55%

Mortgage Repurchase Reserve

($ in millions)

2Q12

3Q12

4Q12

1Q13

1Q12

Beginning Balance

$161

$360

$292

$232

$165

Net Realized Losses

$(51)

$(68)

$(60)

$(48)

$(53)

Ending Balance

$360

$292

$232

$184

$161

Provision

$250

$49

Fannie / Freddie Mix

73% / 27%

87% / 13%

Data as of 1Q13. Numbers may not add due to rounding.

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.

Improving Productivity and Efficiency

Numbers/percentages may not add due to rounding.

Total noninterest expense declined 11% linked quarter and 25% year over year

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

over the long-term

Efficiency ratio improved to 76% from 86% in 1Q12

Targeting an incremental $50mm of cost saves to be executed by year end 2013

Restructuring charges of $19mm in 4Q12 should provide ~$20mm in annual cost saves

On-going benefit of lower pension-related expenses compared to the elevated level in 2012

Goal of ~$925mm of annualized run-rate of expenses by year end 2013

Annualized Consolidated Noninterest Expense

Non-Performing Assets

1Q13 net charge-offs of $27mm compared to

$46mm in 1Q12

Regional Banking NCOs down $9mm or 61%

Non-Strategic NCOs down $11mm or 34%

4Q12 charge-offs included a favorable adjustment

for lower loss estimate for discharged bankruptcies

Reserves for loan losses decreased $81mm year over

year to $265mm

$1.0B

(4)%

(7)%

(9)%

(2)%

(11)%

(9)%

(0)%

(9)%

(22)%

(2)%

Reserves and Net Charge-Offs

$80mm

$40

1Q12

2Q12

3Q12

4Q12

1Q13

Successful Execution:

Asset Quality Trends Continue to Improve

NPAs at $418mm, down 18% or $93mm from 1Q12

NPA % at 1.81% vs 2.56%

NPL levels down 15% vs 1Q12

NPL % at 1.61% vs 2.20%

NPLs up $8mm linked quarter

$46

$40

$39

$20

$27

$(38)

$(25)

$(39)

$(5)

$(12)

2.17%

1.98%

1.71%

1.66%

1.67%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

-$60

-$40

-$20

$20

$40

$60

Net Charge-Offs

Reserve Decrease

Reserve % of Loans

$0.0

$0.2

$0.4

$0.6

$0.8

ORE

NPLs

Numbers may not add due to rounding.

All data is 1Q13 compared to 1Q12 unless otherwise noted.

3Q12 had $40mm of charge-offs related to discharged bankruptcies per regulatory guidance.

Incremental Charge-offs Associated with Bankruptcies

Building Long-Term Earnings Power:

FHNC Bonefish –

Long-Term Targets

1Q13 Consolidated

1Q13 Core

Long-Term Targets

ROTCE

8.05%

12.55%

15.00 –

20.00%

ROA

0.73%

1.08%

1.25 -

1.45%

NIM

2.95%

3.15%

3.50 -

4.00%

Tier 1 Common

10.59%

8.00 –

9.00%

NCO / Average Loans

0.67%

0.18%

0.30 -

0.70%

Fee Income / Revenue

49%

50%

40 -

50%

Efficiency Ratio

76%

73%

60 -

65%

Equity / Assets

Return on Assets

1.25% - 1.45%

Risk Adjusted Margin

Return on Tangible

Common Equity

15% - 20%

Total Assets

Earning Assets

Pre-tax Income

Tax Rate

Efficiency Ratio

60% - 65%

Annualized Net Charge-Offs

0.30% - 0.70%

Net Interest Margin

3.50% - 4.00%

Tier 1 Common

8% - 9%

% Fee Income

40% - 50%

All non-GAAP numbers are reconciled in the appendix.

Core Businesses include Regional Banking, Capital Markets, and Corporate segment. Core data is non-GAAP.

ROTCE, ROA, NIM, and NCO / Average Loans are annualized. ROTCE is a non-GAAP number,.

Tier 1 Common: current quarter is an estimate and a non-GAAP number.

FHN Is Well Positioned For Long-Term Earnings Power

Building a Foundation for Long-Term Earnings Power

FHN is successfully executing on key priorities:

Building foundation for strong balance sheet

Reducing risk profile

Optimizing business mix

Maintaining asset sensitivity for long-term

Expanding and deepening customer relationships

Improving productivity & efficiency

Smartly managing capital

Controlling what we can control in challenging environment

APPENDIX

1Q13 Credit Quality Summary by Portfolio

($ 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

$7,580

$1,048

$50

$3,152

$297

$12,127

$229

$512

$15

$2,438

$548

$18

$15,890

30+ Delinquency

0.17%

0.45%

0.00%

0.68%

1.40%

0.36%

2.55%

0.08%

0.00%

1.89%

1.91%

2.26%

0.67%

Dollars

$13

$21

$43

$46

$10

$107

NPL %

0.89%

2.32%

17.66%

0.74%

0.34%

1.03%

0.84%

8.95%

17.34%

80.40%

1.83%

5.78%

9.61%

1.61%

Dollars

$67

$24

$23

$125

$46

$45

$32

$256

Net

Charge-offs

0.10%

0.40%

0.07%

2.94%

0.18%

2.90%

2.35%

5.44%

0.67%

Dollars

$18

$27

Allowance

$70

$10

$30

$120

$17

$101

$25

$265

Allowance / Loans %

0.92%

1.00%

6.64%

0.96%

2.26%

0.99%

3.24%

8.84%

2.49%

4.15%

4.62%

2.78%

1.67%

Allowance / Charge-offs

8.71x

2.42x

13.36x

0.79x

5.32x

1.39x

1.93x

0.50x

2.45x

Regional Banking

Non-Strategic

Corporate

Commercial

(C&I & Other)

Numbers may not add to total due to rounding. Data as of 1Q13. NM: Not meaningful.

Credit card, Permanent Mortgage, and Other.

Credit card, OTC, and Other Consumer.

Net charge-offs are annualized.

Exercised clean-up calls on jumbo securitizations in 1Q13, 3Q12, 2Q11, and 4Q10, which are now on balance sheet in the Corporate segment.

C&I and Income CRE Portfolio Detail

C&I: TRUPs and Bank-Related Loans

C&I: Period End Loans to Mortgage Companies

Data as of 1Q13. Numbers may not add to total due to rounding.

Reserve coverage includes $30.9mm of LOCOM on TRUPs.

Net of LOCOM.

Net charge off ratios are annualized.

$2.0B

$8.1B portfolio, diversified by industry, managed

primarily in Regional Banking

Net charge-offs down 61% linked quarter to $2mm

C&I consolidated reserves of 1.06% at 3/31/13

$515mm balances in TRUPs and bank-related loans

Two TRUP loan payoffs and one TRUP loan sale

occurred in 1Q13

$262mm whole-loan TRUPs to banks

$156mm whole-loan TRUPs to insurance companies

$97mm loans to bank holding companies and loans

secured by bank stock

Reserve coverage of 9.33%

Six TRUPs totaling $46mm on deferral at 3/31/13

C&I: Overview

Income CRE: Asset Quality

$1.1

$1.3

$1.6

$1.8

$1.1

$0.0

$0.4

$0.8

$1.2

$1.6

1Q12

2Q12

3Q12

4Q12

1Q13

5.59%

4.67%

4.04%

2.97%

2.53%

1Q12

2Q12

3Q12

4Q12

1Q13

30+ Delinquencies

Net Charge-Offs

NPLs / Total Loans

Home Equity: Performance and Characteristics

Portfolio Characteristics

Geographic Distribution

30+ Delinquency: Key Drivers

Data as of 1Q13.

Numbers and percentages may not add due to rounding.

FICO Score-Origination

Lien Position

Channel

57%

% of portfolio

13%

11%

13%

88%

12%

% of portfolio

46%

54%

% of portfolio

First

Second

Total

Balance

$2.6B

$3.0B

$5.6B

Original FICO

750

735

742

Refreshed FICO

748

721

733

Original CLTV

74%

81%

78%

Full Doc

88%

72%

79%

Owner Occupied

91%

96%

94%

HELOCs

$0.8B

$2.4B

$3.1B

Weighted Average

HELOC Utilization

49%

60%

58%

Core

Banking

Customers

51%

11%

Other

33%

0.82%

1.87%

2.48%

5.69%

>=740

720-

739

700-

719

660-

699

<660

1.39%

3.06%

Retail

Wholesale

1.07%

2.04%

1st Lien

2nd Lien

Consumer Real Estate Portfolio

30+ Delinquency

Net Charge-Offs

Non-Strategic Portfolio Run-Off

Source: McDash industry data as of January 2013.

3Q12 includes $38mm of charge-offs related to regulatory guidance on discharged bankruptcies.

4Q12 charge-offs include a favorable adjustment for lower loss estimate for discharged bankruptcies based on loan-level data obtained from new appraisals in 4Q12.

Industry

6.50%

$4B

$66

$18

$30

$24

$75mm

$10

18%

15%

16%

19%

20%

10%

15%

20%

25%

1Q12

2Q12

3Q12

4Q12

1Q13

Period End Balance

Constant Pre-Payment Rate (Right Axis)

$25

$50

1Q12

2Q12

3Q12

4Q12

1Q13

Regional Banking

Non-Strategic

0.68%

1.89%

1Q12

2Q12

3Q12

4Q12

1Q13

Regional Banking

Non-Strategic

Mortgage Repurchases:

Origination and Loan Characteristics

Agency and Pipeline

~$70B of Agency originations from 2005 to 2008

Received ~$2.2B

of Agency-related repurchase

requests to date or 3.2% of originations

Represent 98.5% of all active repurchase/make whole

requests in pipeline at 3/31/13

Pipeline of requests at $259mm in 1Q13 down 22%

from $334mm in 4Q12

$198mm of Agency-related repurchase claims

$30mm of mortgage insurer-related cancellations

$3mm of non-Agency whole loan-related claims

$28mm of other non-repurchase requests

Other Whole Loan Sales/Non-Agency

Represent 1.5% of all active repurchase/make whole

requests in 1Q13 pipeline

Some non-Agency FHN loans were bundled with other

companies’

loans and securitized by the purchasers

A trustee for a bundler has commenced a legal

action seeking repurchase of FHN loans

Certain purchasers have requested indemnity related

to FHN loans included in their securitizations

Loan file review process regarding certain bundled

FHN loans has been initiated

Total Pipeline by Vintage

$500mm

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

Realized Losses through 1Q13

Remaining Reserve at 3/31/13

Cumulative Total Losses plus Reserve

GSE Aggregate Expected Loss Ratio

Originations: 2005-2008

Amount

$39.6B

$18.0B

$57.6B

$11.9B

$69.5B

$2.2B / 3.2%

$2.1B

45 -

55%

50 -

60%

~$566mm

$184mm

~$750mm

1.3%

Data as of 1Q13.

Requests include MI cancellation notices.

Agencies account for 98.5% of all actual repurchase/make-whole requests in the pipeline as of 1Q13 and 91.7% of the active pipeline inclusive of PMI cancellation notices and all other claims.

Requests reflect pipeline as of each respective quarter end.

Private Label Securitization Exposure Manageable

Originated and securitized $27B of First Horizon

branded private label mortgages from 2005-2007

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

100% of active PLS are older than 5 years, with

91% older than 6 years

Strong relative performance vs industry cohorts

No subprime securitizations

Smaller average securitization size

Origination Mix

FHN

Industry

Securitization

Performance

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

Key Points

All data refers to the active 2005-2007 FHN branded private securitizations, unless otherwise noted. Data as of March 2013 with February remits.

Source for all data, except where noted, is LoanPerformance, CPRCDR, Intex, PolyPaths, Bloomberg with company analysis. Cohort (Industry) = Loans of similar type/vintage relevant reference group.

Industry source: KDS Global. Includes all deals from 2005-2007.

Performance determined by comparing 60D+ and Cumulative Loss ratios at the deal level. 60D+ balances are current UPB. Cumulative loss balances are original UPB.

FHFA Litigation Securitizations

FHFA Litigation Certificate Breakdown

$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

$122

$82

$72

$10

FHAMS 2005-AA10

IA1

$140

$81

$53

$46

FHAMS 2005-AA11

IA1

$129

$69

$49

$43

$11

FHAMS 2005-AA12

IIA1

$161

$73

$75

$62

$13

FHAMS 2006-AA1

IA1

$230

$139

$73

$63

$10

$18

FHFA Total

$874

$485

$332

$287

$45

$57

Numbers and percentages may not add to total due to rounding. Data source: March 2013 Trustee Reports and the FHFA lawsuit filed on 9/2/11.

In April 2007, the GSEs purchased the remaining $161mm of UPB in the FHAMS 2005-AA12 IIA1 tranche, as reported in the FHFA lawsuit. This tranche had an origination balance of $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.

Non-FHFA Litigation Securitizations

Non-FHFA Litigation Certificate Breakdown

Numbers & percentages may not add to total due to rounding. Data source: March 2013 Trustee Reports. ¹FHLB Chicago purchased only $85mm of the $131mm tranche as stated in the complaint.

²The complainants only purchased a portion of these tranches. Original UPB estimated based on the purchase price stated in the complaints.

All other metrics prorated based on the ratio of purchase price to the total original UPB of the entire tranche.

³60D+ 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.

Royal Park is asking for indemnification on $100mm of the $190mm tranche as stated in the indemnification request.

($ in millions)

Deal

FHASI 2006-AR1

(FHLB Chicago)

Senior

$85.1

$54.7

$30.4

$28.0

$2.4

$0.0

FHASI 2005-AR5

(Schwab)

Senior

$30.0

$18.6

$11.4

$10.7

$0.7

FHASI 2007-AR2

(Schwab)

Senior

$50.0

$30.9

$17.2

$14.1

$3.1

$1.9

FHASI 2006-3

(Western-Southern)

Junior

$9.9

$0.5

$3.9

$3.6

$0.3

$5.5

FHASI 2007-5

(Western-Southern)

Junior

$7.1

$0.2

$0.0

$6.9

FHAMS 2007-FA4

(Western-Southern)

Senior

$5.1

$0.2

$0.0

$4.8

FHAMS 2006-FA6

(FDIC Alabama)

Senior

$11.1

$2.0

$8.8

$6.3

$2.5

$0.3

FHAMS 2006-FA6

(FDIC Alabama)

Senior

$15.2

$2.6

$12.1

$9.6

$2.5

$0.5

FHAMS 2006-FA7

(FDIC Alabama)

Senior

$20.7

$4.2

$14.9

$12.0

$2.9

$1.6

FHAMS 2007-FA4

(FDIC Alabama)

Senior

$14.4

$2.4

$10.9

$8.3

$2.6

$1.1

FHAMS 2007-FA1

(FDIC New York)

Senior

$44.5

$10.1

$31.1

$23.3

$7.8

$3.3

FHAMS 2007-FA2

(FDIC New York)

Senior

$34.9

$9.2

$22.8

$17.5

$5.3

$2.9

FHAMS 2005-FA8

(FHLB Indemnification)

Senior

$100.0

$71.3

$28.7

$24.3

$4.4

$0.0

FHAMS 2007-FA3

(MetLife Indemnification)

Senior

$103.0

$54.0

$45.3

$33.9

$11.4

$3.8

FHAMS 2005-FA10

(Royal Park Indemnification)

Senior

$100.0

$56.8

$41.2

$34.2

$6.9

$2.0

FHAMS 2006-FA2

(Royal Park Indemnification)

Senior

$30.0

$21.8

$7.4

$6.0

$1.4

$0.9

Total

$660.9

$339.4

$285.9

$231.7

$54.2

$35.5

Cumulative

Loss

Certificate

Original

UPB

Paid

Off

Current

UPB

Performing

UPB

60D+

Delinquent

$0.0

$661mm

Reconciliation to GAAP Financials

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

expense, revenue, charge-offs & various ratios using one or more of those measures. That information is not presented according

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

Numbers may not add to total due to rounding.

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

1Q13

Return

on Assets

Net Interest

Margin

Net Charge-Offs/

Average Loans

Fee Income /

Total Revenue

Efficiency

Ratio

Regional Banking (GAAP)

1.55%

4.84%

0.18%

27%

63%

Capital Markets (GAAP)

1.90%

0.75%

0.0%

95%

77%

Corporate (GAAP)

-0.48%

-0.83%

Core Businesses (Non-GAAP)

1.08%

3.15%

0.18%

50%

73%

Non-Strategic (GAAP)

-0.93%

2.02%

2.36%

39%

99%

Consolidated (GAAP)

0.73%

2.95%

0.67%

49%

76%

($ in millions)

1Q13

4Q12

1Q12

Regional Banking Net interest income (GAAP)

$145.1

$153.1

$146.6

Regional Banking FTE adjustment

$1.7

$1.6

$1.5

Regional Banking Net interest income adjusted for impact of FTE

(Non-GAAP)

$146.8

$154.7

$148.1

Capital Markets Net interest income (GAAP)

$3.8

$4.2

$5.7

Capital Markets FTE adjustment

$0.1

$0.2

$0.1

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

$4.0

$4.4

$5.8

Corporate Net interest income (GAAP)

($7.7)

($8.2)

($5.3)

Corporate FTE adjustment

$0.0

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

($7.7)

($8.2)

($5.3)

Non-Strategic Net interest income (GAAP)

$20.2

$21.5

$24.9

Non-Strategic FTE adjustment

$0.0

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

$20.2

$21.5

$24.9

Consolidated Net interest income (GAAP)

$161.4

$170.6

$171.9

Consolidated FTE adjustment

$1.8

$1.7

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

$163.2

$172.4

$173.6

Core Businesses Net interest income (Non-GAAP)

$141.2

$149.1

$147.0

Core Businesses FTE adjustment (Non-GAAP)

$1.8

$1.7

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

$143.0

$151.0

$148.7

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)

1Q13

4Q12

1Q12

Tangible Common Equity (Non-GAAP)

Total equity (GAAP)

$2,599.7

$2,509.2

$2,674.2

Less: Noncontrolling interest

$295.3

$295.2

Less: Preferred stock

$95.6

$0.0

Total common equity

2,208.8

2,214.0

2,379.0

Less: intangible assets (GAAP)

156.0

156.9

159.9

Tangible common equity (Non-GAAP)

2,052.8

2,057.1

2,219.1

Less: unrealized gains on AFS securities, net of tax

48.6

55.3

67.1

Adjusted tangible common equity (Non-GAAP)

2,004.2

2,001.8

2,152.1

Tangible Assets (Non-GAAP)

Total assets (GAAP)

$25,166.4

$25,520.1

$25,679.0

Less: intangible assets (GAAP)

156.0

156.9

159.9

Tangible assets (Non-GAAP)

25,010.4

25,363.2

25,519.1

Tier 1 Common (Non-GAAP)

Tier 1 capital

$2,738.6

$2,640.8

$2,841.1

294.8

Less: Preferred stock

95.6

Less: trust preferred

200.0

Tier 1 common (Non-GAAP)

2,148.1

2,146.0

2,346.2

Risk Weighted Assets

Risk weighted assets

$20,278.5

$20,153.4

$19,783.4

Ratios

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

8.21%

8.11%

8.70%

Total equity to total assets (GAAP)

10.33%

9.83%

10.41%

Tier 1 common ratio to risk weighted assets (Non-GAAP)

10.59%

10.65%

11.86%

Tier 1 capital to total assets (GAAP)

10.88%

10.35%

11.06%

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

10.12%

10.21%

11.22%

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

11.43%

11.58%

12.97%

Total equity plus reserves to total assets (GAAP)

11.38%

10.92%

11.76%

Less: noncontrolling interest - FTBNA preferred stock

Reconciliation to GAAP Financials

Slides in this presentation use non-GAAP information of tangible common equity, net income, risk weighted assets, FTEs, revenue,

expense, and various ratios using 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.

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 estimated 1Q13 Tier 1 Common ratio of 10.59% to the Non-Strategic risk weighted assets.

Peer group includes UBSI, ONB, TRMK, IBKC, BXS,

UMBF, BOH, VLY, FULT, WTFC, TCB, SUSQ, HBHC,

WBS, CBSH, CFR, ASBC, SNV, BOKF, FNFG

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