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

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8-K - 8-K - FIRST HORIZON CORP	d711394d8k.htm

Exhibit 99.1

LOGO

FIRST QUARTER 2014

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
Income Statement		6
Other Income and Other Expense		7
Balance Sheet
Period End Balance Sheet		8
Average Balance Sheet		9
Net Interest Income		10
Average Balance Sheet: Yields and Rates		11

Capital Highlights		12

Business Segment Detail
Segment Highlights		13
Regional Banking		14
Capital Markets and Corporate		15
Non-Strategic		16

Asset Quality
Asset Quality: Consolidated		17
Asset Quality: Regional Banking and Corporate		19
Asset Quality: Non-Strategic		20
Portfolio Metrics		21

Non-GAAP to GAAP Reconciliation		22

Glossary of Terms		23

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 (“TCE”) to tangible assets (“TA”), tangible book value per common share, tier 1 common to risk weighted assets (“RWA”), adjusted tangible common equity to risk weighted assets, pre-tax pre-provision net revenue (“PPNR”), and net interest margin using net interest income 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 currently effective 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 22 of this financial supplement.


FIRST HORIZON NATIONAL CORPORATION SEGMENT STRUCTURE

LOGO

FHN PERFORMANCE HIGHLIGHTS

Summary of First Quarter 2014 Significant Items


Segment	Item	Income Statement	Amount	Comments

Non-Strategic	Sale of Mortgage Servicing Rights	Mortgage banking	$20.0 million	Pre-tax income associated with the receipt of previously unrecognized servicing fees in conjunction with servicing sale

Corporate	Investment securities gain	Securities gains/(losses)	$5.6 million	Pre-tax gain related to the sale of a cost method investment

Non-Strategic	On-balance sheet consumer loan securitizations	Gain/(loss) on debt extinguishment & Mortgage banking	$(6.4) million	Net pre-tax loss on the resolution/deconsolidation of three previously consolidated on-balance sheet consumer loan securitizations

Corporate & Non-Strategic	Restructuring, Repositioning, and Efficiency Initiatives	Primarily Occupancy & Employee compensation, incentives, and benefits	$(5.7) million	Primarily pre-tax expense associated with a lease abandonment and severance-related costs associated with efficiency initiatives within corporate and bank service functions

First Quarter 2014 vs. Fourth Quarter 2013

Consolidated

•

Net income available to common shareholders was $44.9 million, or $.19 per diluted share in first quarter, compared to $49.4 million, or $.21 per diluted share in prior quarter

•

NII decreased to $152.4 million in first quarter from $157.1 million in fourth quarter; NIM decreased to 2.88 percent from 2.98 percent in the prior quarter

•

NII was affected by a number of factors including fewer days in first quarter compared to fourth quarter and lower loan balances

•

A linked quarter decline in accretion from acquired loans and elevated excess cash held at the Fed during the quarter negatively affected NIM in first quarter

•

Noninterest income (including securities gains) increased to $145.7 million in first quarter from $135.0 million in fourth quarter

•

The increase was largely driven by additional servicing fees received in conjunction with the servicing sale and securities gains in first quarter

•

Noninterest expense decreased $36.9 million to $220.2 million in first quarter

•

The decline in expense is largely due to litigation accruals recognized in fourth quarter related to legacy businesses combined with lower personnel expenses across various segments

•

Average loans were $15.1 billion in first quarter compared to $15.3 billion in fourth quarter; period-end loans declined 2 percent to $15.1 billion

Regional Banking

•

Pre-tax income was $56.0 million in first quarter compared to $67.5 million in fourth quarter; PPNR was $69.0 million and $70.0 million in first and fourth quarters, respectively

•

Average core deposits increased to $14.9 billion in first quarter from $14.5 billion in fourth quarter; period-end core deposits increased 2 percent to $15.2 billion

•

Period-end loans decreased 1 percent, or $129.6 million to $12.0 billion in first quarter primarily driven by declines in loans to mortgage companies due to a reduction in refinance volume driven by higher rates

•

NII was $142.0 million in first quarter compared to $146.4 million in fourth quarter

•

The decrease in NII is primarily attributable to the impact of day variance relative to fourth quarter, a decline in accretion on acquired loans, and a decline in loans to mortgage companies, partially offset by cash basis interest income

•

Loan loss provision was $13.0 million in first quarter compared to $2.6 million in prior quarter

•

Generally, first quarter provision was affected by further refinement to the credit card reserving process as well as macro-economic factors

•

Noninterest income was $60.0 million in first quarter compared to $62.8 million in fourth quarter

•

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

•

Noninterest expense declined to $133.1 million in first quarter from $139.2 million in the prior quarter

•

Fourth quarter included charges associated with branch closings and higher professional fees

Capital Markets

•

Fixed income revenue decreased to $49.6 million in first quarter from $50.9 million in fourth quarter

•

Fixed income average daily revenue (“ADR”) was $.8 million in first and fourth quarters

•

Noninterest expense decreased to $52.6 million in first quarter from $53.1 million in fourth quarter

•

The expense decrease was primarily due to a decline in variable compensation costs partially offset by FICA reset

Corporate

•

NII was negative $9.1 million in first quarter compared to negative $10.4 million in the prior quarter

•

Estimated effective duration of the securities portfolio was 3.7 years in first quarter compared to 3.8 years in fourth quarter

•

Estimated modified duration of the securities portfolio was 4.0 years in first and fourth quarters

•

Noninterest income increased to $13.2 million in first quarter from $7.8 million in fourth quarter

•

First quarter and fourth quarter include gains of $5.6 million and $3.3 million, respectively, on the sale of cost method investments; Fourth quarter also included $1.1 million other-than-temporary impairment of another investment

•

First quarter fee income also increased due to $2.8 million of BOLI policy benefits received

•

Noninterest expense was $19.6 million in first quarter compared to $18.8 million in the prior quarter

•

Increase driven by a lease abandonment expense and elevated advertising expense related to FHN’s 150 year celebration campaign, partially offset by a decline in personnel expense

FHN PERFORMANCE HIGHLIGHTS (continued)

First Quarter 2014 vs. Fourth Quarter 2013

Non-Strategic

•

Pre-tax income was $19.7 million in first quarter compared to a pre-tax loss of $36.7 million in fourth quarter

•

Provision credit of $3.0 million in first quarter compared to provision expense of $12.4 million in prior quarter

•

Provision credit in first quarter primarily driven by a net reserve decrease related to trust preferred loan (“TRUPs”) sales partially offset by provision associated with the consumer portfolios

•

Noninterest income was $15.8 million in first quarter compared to $4.9 million in fourth quarter

•

Increase primarily due to higher servicing income in first quarter resulting from the receipt of previously unrecognized servicing fees in conjunction with the servicing sale

•

This increase was partially offset by a $4.4 million loss on extinguishment of debt associated with the collapse of 2 HELOC trusts and a $2.0 million loss associated with the deconsolidation of a securitization trust

•

Noninterest expense was $15.0 million in first quarter compared to $46.0 million in the prior quarter

•

Fourth quarter included a $30.0 million reversal of mortgage repurchase and foreclosure provision expense and $57.0 million of net loss accruals related to legal matters

Asset Quality

•

The provision for loan losses declined to $10.0 million in first quarter from $15.0 million in fourth quarter

•

In first quarter, 3 TRUPs (2 relationships) that were on interest deferral within the non-strategic segment were sold which favorably affected NPL and ALLL levels and resulted in $3.1 million in charge-offs

•

The sales contributed to a $23.7 million decline in C&I NPLs

•

Reserves declined $8.4 million and after charge-offs, resulted in net reserve release of $5.3 million

•

Net charge-offs (“NCOs”) were $16.6 million in first quarter compared to $16.9 million in prior quarter

•

Annualized net charge-offs were relatively flat at 45 basis points of average loans

•

A decline in NCOs within regional bank C&I mostly offset charge-offs associated with the TRUPs sales

•

The allowance as a percentage of loans ratio was relatively flat at 164 basis points in first quarter compared to 165 basis points in prior quarter

•

Total reserves decreased to $247.2 million from $253.8 million in fourth quarter

•

The net decline in reserves was driven by a $8.8 million commercial reserve release, partially offset by $2.2 million net reserve increase in the consumer portfolios

•

The consumer allowance increase was largely driven by a reserve build in the regional bank credit card and other portfolio

•

Nonperforming loans (“NPLs”) in the portfolio declined $14.1 million to $240.9 million

•

Total commercial NPLs declined $30.6 million largely driven by the TRUPs sales

•

The decline was partially offset by an increase in nonaccruing junior liens

•

Nonperforming assets (“NPAs”), including loans held-for-sale, decreased to $345.5 million in first quarter from $361.9 million in prior quarter

•

Total 30+ delinquencies were $106.0 million in first quarter compared to $102.6 million in prior quarter

•

The increase in 30+ delinquencies was largely driven by C&I and Income CRE loans within the regional banking segment

•

CRE delinquencies primarily driven by 2 larger purchase credit impaired loans from the Mountain National Bank (“MNB”) acquisition

•

C&I delinquencies primarily driven by 1 credit

•

Permanent mortgage and consumer real estate delinquencies decreased $15.4 million in first quarter which more than offset an uptick in credit card delinquencies

•

Troubled debt restructurings (“TDRs”) were $490.4 million at the end of first quarter compared with $487.9 million in prior quarter

Taxes

•

The effective tax rate for first quarter is 27.47 percent which reflects forecasted taxable income for the year and the favorable effect on the tax rate from permanent benefits

•

Permanent differences primarily consist of: tax credit investments, life insurance, tax-exempt interest, and a decrease in the capital loss deferred tax valuation allowance

Capital and Liquidity

•

Paid $0.05 per common share dividend on April 1, 2014

•

Approved a $100.0 million common share purchase program in January 2014; Terminated the older program, originally announced in 2011

•

Paid preferred quarterly dividend of $1.6 million on April 10, 2014

•

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

•

8.37 percent for tangible common equity to tangible assets

•

14.20 percent for Tier 1

•

16.24 percent for Total Capital

•

11.06 percent for Tier 1 Common

•

11.19 percent for Leverage

FHN CONSOLIDATED INCOME STATEMENT

Quarterly, Unaudited


																1Q14 Changes vs.
(Dollars in thousands, except per share data)	1Q14			4Q13			3Q13			2Q13			1Q13			4Q13			1Q13

Interest income	$	173,584		$	179,053		$	182,610		$	183,991		$	186,399			(3	)%		(7	)%
Less: interest expense		21,225			21,918			23,772			23,972			25,017			(3	)%		(15	)%

Net interest income		152,359			157,135			158,838			160,019			161,382			(3	)%		(6	)%
Provision for loan losses		10,000			15,000			10,000			15,000			15,000			(33	)%		(33	)%

Net interest income after provision for loan losses		142,359			142,135			148,838			145,019			146,382				*		(3	)%

Noninterest income:
Capital markets (a)		56,840			59,653			64,283			69,265			79,163			(5	)%		(28	)%
Deposit transactions and cash management		26,456			29,194			29,279			28,254			27,656			(9	)%		(4	)%
Brokerage, management fees and commissions		12,276			11,505			10,868			10,540			9,348			7	%		31	%
Mortgage banking (b)		19,029			3,853			14,460			5,589			9,373			NM			NM
Trust services and investment management		6,744			6,596			6,649			6,950			6,328			2	%		7	%
Bankcard income		4,520			4,998			5,303			5,299			4,882			(10	)%		(7	)%
Bank owned life insurance (c)		6,032			3,636			3,560			3,946			5,472			66	%		10	%
Other service charges		2,845			3,144			3,707			3,503			3,086			(10	)%		(8	)%
Insurance commissions		437			960			733			730			600			(54	)%		(27	)%
Securities gains/(losses), net (d)		5,657			2,183			(96	)		(351	)		24			NM			NM
Gain/(loss) on divestitures		—			(4	)		115			—			—			NM			NM
Other (e)		4,894			9,325			11,614			8,907			10,495			(48	)%		(53	)%

Total noninterest income		145,730			135,043			150,475			142,632			156,427			8	%		(7	)%

Adjusted gross income after provision for loan losses		288,089			277,178			299,313			287,651			302,809			4	%		(5	)%

Noninterest expense:
Employee compensation, incentives, and benefits		119,229			127,144			132,213			130,500			139,184			(6	)%		(14	)%
Repurchase and foreclosure provision		—			(30,000	)		200,000			—			—			NM			NM
Legal and professional fees		15,039			15,419			12,704			14,065			11,171			(2	)%		35	%
Occupancy (f)		17,592			12,811			13,147			11,785			12,822			37	%		37	%
Computer software		10,656			10,197			10,446			9,608			10,076			5	%		6	%
Contract employment and outsourcing (g)		4,325			9,059			9,241			8,581			9,039			(52	)%		(52	)%
Operations services		8,982			9,104			9,199			8,842			8,070			(1	)%		11	%
Equipment rentals, depreciation, and maintenance		7,849			8,431			7,890			7,597			7,820			(7	)%			*
FDIC premium expense		3,991			4,477			4,631			5,037			6,011			(11	)%		(34	)%
Advertising and public relations		5,908			4,685			5,486			4,121			3,947			26	%		50	%
Communications and courier		4,224			4,473			4,517			4,531			4,437			(6	)%		(5	)%
Foreclosed real estate		784			1,050			523			1,287			1,439			(25	)%		(46	)%
Amortization of intangible assets		982			1,128			928			928			928			(13	)%		6	%
Other (e)		20,653			79,119			22,631			20,526			25,596			(74	)%		(19	)%

Total noninterest expense		220,214			257,097			433,556			227,408			240,540			(14	)%		(8	)%

Income/(loss) before income taxes		67,875			20,081			(134,243	)		60,243			62,269			NM			9	%
Provision/(benefit) for income taxes (h)		18,645			(33,813	)		(31,094	)		15,008			17,730			NM			5	%

Income/(loss) from continuing operations		49,230			53,894			(103,149	)		45,235			44,539			(9	)%		11	%
Income/(loss) from discontinued operations, net of tax		—			(6	)		123			1			430			NM			NM

Net income/(loss)		49,230			53,888			(103,026	)		45,236			44,969			(9	)%		9	%
Net income attributable to noncontrolling interest		2,813			2,934			2,875			2,843			2,813			(4	)%			*

Net income/(loss) attributable to controlling interest		46,417			50,954			(105,901	)		42,393			42,156			(9	)%		10	%
Preferred stock dividends		1,550			1,550			1,550			1,550			1,188				*		30	%

Net income/(loss) available to common shareholders	$	44,867		$	49,404		$	(107,451	)	$	40,843		$	40,968			(9	)%		10	%

Common Stock Data
Diluted EPS from continuing operations	$	0.19		$	0.21		$	(0.45	)	$	0.17		$	0.17			(10	)%		12	%
Diluted EPS	$	0.19		$	0.21		$	(0.45	)	$	0.17		$	0.17			(10	)%		12	%
Diluted shares (thousands)		237,401			236,753			236,895			240,891			242,799				*		(2	)%

Key Ratios & Other
Return on average assets (annualized) (i)		0.83	%		0.90	%		(1.69	)%		0.74	%		0.73	%
Return on average common equity (annualized) (i)		8.48			9.42	%		(20.39	)%		7.46	%		7.48	%
Fee income to total revenue (j)		47.90			45.81	%		48.66	%		47.19	%		49.22	%
Efficiency ratio (k)		75.30			88.66	%		NM			75.05	%		75.69	%
Full time equivalent employees		4,251			4,309			4,338			4,296			4,381

NM - Not meaningful

*	Amount is less than one percent.

(a)	1Q14 ADR was $.8 million. 2Q13 and 1Q13 include a gain of $1.0 million and $2.4 million, respectively, from a LOCOM reversal associated with a TRUP loan payoff within the non-strategic segment.

(b)

1Q14 increase reflects the receipt of previously unrecognized servicing fees in conjunction with transfers of servicing in 1Q14, partially offset by a $2.0 million loss on the deconsolidation of a securitization trust; 4Q13 decline due to transfers of servicing; 3Q13 increase in servicing reflects the terms of the agreement to sell servicing, somewhat offset by $2.2 million of estimated costs for obligations associated with the servicing sale.

(c)	1Q14 increase driven by $2.8 million of policy benefits received.

(d)	1Q14 and 4Q13 include gains of $5.6 million and $3.3 million, respectively, on the sale of cost method investments; 4Q13 also includes a $1.1 million other-than-temporary impairment of an investment.

(e)	Refer to the Other Income and Other Expense table on page 7 for additional information.

(f)	1Q14 includes $4.6 million of lease abandonment expense.

(g)	1Q14 decline due to lower subservicing costs associated with the sales of servicing.

(h)	4Q13 includes $7.5 million in tax benefits related to discrete period tax items.

(i)	Return on average assets is calculated using net income. Return on average common equity is calculated using net income available to common shareholders.

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

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

FHN OTHER INCOME AND OTHER EXPENSE

Quarterly, Unaudited


													1Q14 Changes vs.
(Thousands)	1Q14			4Q13		3Q13		2Q13			1Q13		4Q13			1Q13

Other Income
ATM and interchange fees	$	2,497		$	2,721	$	2,680	$	2,627		$	2,384		(8	)%		5	%
Electronic banking fees		1,534			1,535		1,607		1,585			1,562			*		(2	)%
Letter of credit fees		1,663			1,215		1,171		1,196			1,499		37	%		11	%
Deferred compensation (a)		657			1,210		2,160		(278	)		1,593		(46	)%		(59	)%
Gain /(loss) on extinguishment of debt		(4,350	)		—		—		—			—		NM			NM
Other		2,893			2,644		3,996		3,777			3,457		9	%		(16	)%

Total	$	4,894		$	9,325	$	11,614	$	8,907		$	10,495		(48	)%		(53	)%


Other Expense
Litigation and regulatory matters	$	90		$	57,355	$	229	$	900		$	5,170		NM			(98	)%
Other insurance and taxes		3,060			3,261		3,215		3,076			3,046		(6	)%			*
Tax credit investments		2,495			3,063		3,079		2,989			2,972		(19	)%		(16	)%
Travel and entertainment		1,824			2,339		2,400		2,372			1,848		(22	)%		(1	)%
Employee training and dues		866			1,327		1,244		1,229			1,254		(35	)%		(31	)%
Customer relations		1,243			1,179		1,204		1,255			1,278		5	%		(3	)%
Miscellaneous loan costs		714			701		1,349		1,163			996		2	%		(28	)%
Supplies		1,116			1,090		950		705			1,055		2	%		6	%
Other (b)		9,245			8,804		8,961		6,837			7,977		5	%		16	%

Total	$	20,653		$	79,119	$	22,631	$	20,526		$	25,596		(74	)%		(19	)%

NM - Not meaningful

*	Amount is less than one percent.

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

(b)	1Q14 includes a $2.3 million negative valuation adjustment associated with the derivatives related to prior sales of Visa Class B shares.

FHN CONSOLIDATED PERIOD-END BALANCE SHEET

Quarterly, Unaudited


																1Q14 Changes vs.
(Thousands)	1Q14			4Q13			3Q13			2Q13			1Q13			4Q13			1Q13

Assets:
Investment securities	$	3,575,453		$	3,398,457		$	3,186,943		$	3,228,379		$	3,190,219			5	%		12	%
Loans held-for-sale		361,359			370,152			371,640			385,105			390,874			(2	)%		(8	)%
Loans, net of unearned income (Restricted - $.1 billion) (a)		15,119,461			15,389,074			15,408,556			16,197,952			15,889,670			(2	)%		(5	)%
Federal funds sold		16,555			66,079			52,830			52,169			33,738			(75	)%		(51	)%
Securities purchased under agreements to resell		605,276			412,614			576,355			602,126			732,696			47	%		(17	)%
Interest-bearing cash (b)		685,540			730,297			184,179			344,150			431,182			(6	)%		59	%
Trading securities		1,194,749			801,718			1,343,134			1,267,348			1,397,746			49	%		(15	)%

Total earning assets		21,558,393			21,168,391			21,123,637			22,077,229			22,066,125			2	%		(2	)%

Cash and due from banks		450,270			349,216			395,631			382,601			275,262			29	%		64	%
Capital markets receivables		51,082			45,255			83,154			151,660			169,927			13	%		(70	)%
Mortgage servicing rights, net (c)		4,687			72,793			116,686			113,853			109,102			(94	)%		(96	)%
Goodwill (d)		141,943			141,943			140,479			140,479			134,242				*		6	%
Other intangible assets, net		21,007			21,988			22,216			23,144			21,772			(4	)%		(4	)%
Premises and equipment, net		299,183			305,244			308,779			314,764			299,740			(2	)%			*
Real estate acquired by foreclosure (e)		66,035			71,562			71,626			69,901			54,672			(8	)%		21	%
Allowance for loan losses (Restricted - $2.0 million) (a)		(247,246	)		(253,809	)		(255,710	)		(261,934	)		(265,218	)		(3	)%		(7	)%
Derivative assets		166,465			181,866			215,116			235,759			274,332			(8	)%		(39	)%
Other assets (Restricted - $.9 million) (a)		1,430,170			1,685,384			1,637,139			1,605,344			1,663,092			(15	)%		(14	)%

Total assets (Restricted - $.1 billion) (a)	$	23,941,989		$	23,789,833		$	23,858,753		$	24,852,800		$	24,803,048			1	%		(3	)%


Liabilities and Equity:
Deposits:
Savings	$	6,630,142		$	6,732,326		$	6,781,522		$	6,928,447		$	6,498,832			(2	)%		2	%
Other interest-bearing deposits		4,071,699			3,859,079			3,494,236			3,825,235			3,740,257			6	%		9	%
Time deposits		898,223			951,755			997,726			1,051,327			988,375			(6	)%		(9	)%

Total interest-bearing core deposits		11,600,064			11,543,160			11,273,484			11,805,009			11,227,464				*		3	%
Noninterest-bearing deposits		4,534,245			4,637,839			4,434,746			4,603,954			4,454,045			(2	)%		2	%

Total core deposits (f)		16,134,309			16,180,999			15,708,230			16,408,963			15,681,509				*		3	%

Certificates of deposit $100,000 and more		538,434			553,957			575,679			602,921			522,958			(3	)%		3	%

Total deposits		16,672,743			16,734,956			16,283,909			17,011,884			16,204,467				*		3	%

Federal funds purchased		1,135,665			1,042,633			1,062,901			1,142,749			1,361,670			9	%		(17	)%
Securities sold under agreements to repurchase		411,795			442,789			427,232			433,761			488,010			(7	)%		(16	)%
Trading liabilities		667,257			368,348			585,969			596,869			781,306			81	%		(15	)%
Other short-term borrowings		204,023			181,146			303,686			446,909			186,898			13	%		9	%
Term borrowings (Restricted - $.1 billion) (a) (g)		1,507,048			1,739,859			1,771,288			1,800,255			2,197,864			(13	)%		(31	)%
Capital markets payables		39,510			21,173			53,784			90,231			97,954			87	%		(60	)%
Derivative liabilities		137,863			154,280			165,918			198,489			199,999			(11	)%		(31	)%
Other liabilities		621,948			603,898			770,773			585,245			685,153			3	%		(9	)%

Total liabilities (Restricted - $.1 billion) (a)		21,397,852			21,289,082			21,425,460			22,306,392			22,203,321			1	%		(4	)%

Equity:
Common stock		147,866			147,731			147,705			150,347			150,766				*		(2	)%
Capital surplus (h)		1,417,170			1,416,767			1,413,248			1,416,563			1,461,292				*		(3	)%
Undivided profits		728,165			695,207			657,676			777,108			748,427			5	%		(3	)%
Accumulated other comprehensive loss, net		(140,119	)		(150,009	)		(176,391	)		(188,665	)		(151,639	)		(7	)%		(8	)%
Preferred stock		95,624			95,624			95,624			95,624			95,624				*			*
Noncontrolling interest (i)		295,431			295,431			295,431			295,431			295,257				*			*

Total equity		2,544,137			2,500,751			2,433,293			2,546,408			2,599,727			2	%		(2	)%

Total liabilities and equity	$	23,941,989		$	23,789,833		$	23,858,753		$	24,852,800		$	24,803,048			1	%		(3	)%

*	Amount is less than one percent.

(a)	Restricted balances parenthetically presented are as of March 31, 2014.

(b)	Includes excess balances held at Fed.

(c)	Decreases in 1Q14 and 4Q13 reflect transfers associated with an agreement to sell mortgage servicing rights entered into in 3Q13.

(d)	2Q13 increase driven by the MNB acquisition.

(e)	1Q14 includes $23.1 million of foreclosed assets related to government insured mortgages.

(f)	1Q14 average core deposits were $16.0 billion.

(g)	In 2Q13 $350.0 million of subordinated notes matured. In 1Q14 FHN resolved the collateralized borrowings for three previously on-balance sheet consumer loan securitizations.

(h)	2Q13 decrease related to $40.0 million prepaid share repurchase agreement. The shares were delivered to FHN in 3Q13.

(i)	Consists of preferred stock of subsidiaries.

FHN CONSOLIDATED AVERAGE BALANCE SHEET

Quarterly, Unaudited


																1Q14 Changes vs.
(Thousands)	1Q14			4Q13			3Q13			2Q13			1Q13			4Q13			1Q13

Assets:
Earning assets:
Loans, net of unearned income:
Commercial, financial, and industrial (C&I)	$	7,639,584		$	7,694,029		$	7,888,297		$	8,121,219		$	8,199,249			(1	)%		(7	)%
Commercial real estate		1,139,749			1,164,748			1,215,586			1,134,268			1,161,467			(2	)%		(2	)%
Consumer real estate		5,305,596			5,400,751			5,502,825			5,561,689			5,644,275			(2	)%		(6	)%
Permanent mortgage		637,642			678,938			721,554			771,253			801,000			(6	)%		(20	)%
Credit card and other		336,454			334,887			323,551			304,561			291,221				*		16	%

Total loans, net of unearned income (Restricted - $.1 billion) (a) (b)		15,059,025			15,273,353			15,651,813			15,892,990			16,097,212			(1	)%		(6	)%

Loans held-for-sale		367,899			368,373			378,263			389,273			392,272				*		(6	)%
Investment securities:
U.S. treasuries		41,828			39,994			41,303			40,815			44,107			5	%		(5	)%
U.S. government agencies		3,222,642			2,959,355			2,900,838			2,924,012			2,818,958			9	%		14	%
States and municipalities		19,425			15,155			15,246			15,390			15,255			28	%		27	%
Other		211,891			229,728			224,213			218,701			216,860			(8	)%		(2	)%

Total investment securities		3,495,786			3,244,232			3,181,600			3,198,918			3,095,180			8	%		13	%

Capital markets securities inventory		1,101,798			1,159,570			1,156,262			1,310,044			1,308,969			(5	)%		(16	)%
Mortgage banking trading securities		6,949			12,712			15,558			16,398			17,486			(45	)%		(60	)%
Other earning assets:
Federal funds sold		21,615			19,471			28,498			26,698			24,173			11	%		(11	)%
Securities purchased under agreements to resell		622,466			581,798			593,978			705,129			754,630			7	%		(18	)%
Interest-bearing cash (c)		972,537			614,628			537,631			401,236			653,712			58	%		49	%

Total other earning assets		1,616,618			1,215,897			1,160,107			1,133,063			1,432,515			33	%		13	%

Total earnings assets (Restricted - $.1 billion) (a)		21,648,075			21,274,137			21,543,603			21,940,686			22,343,634			2	%		(3	)%

Allowance for loan losses (Restricted - $3.2 million) (a)		(249,733	)		(250,074	)		(256,789	)		(260,944	)		(270,385	)			*		(8	)%
Cash and due from banks (Restricted - $1.4 million) (a)		336,543			341,066			351,972			342,053			348,581			(1	)%		(3	)%
Capital markets receivables		54,654			45,179			82,289			97,851			88,211			21	%		(38	)%
Premises and equipment, net		301,065			307,285			308,199			302,263			299,846			(2	)%			*
Derivative assets		181,586			201,609			209,878			257,181			286,243			(10	)%		(37	)%
Other assets (Restricted - $1.4 million) (a)		1,643,879			1,926,109			1,942,481			1,903,728			1,948,417			(15	)%		(16	)%

Total assets (Restricted - $.1 billion) (a)	$	23,916,069		$	23,845,311		$	24,181,633		$	24,582,818		$	25,044,547				*		(5	)%


Liabilities and equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Savings	$	6,683,749		$	6,642,159		$	6,957,875		$	6,516,889		$	6,593,590			1	%		1	%
Other interest-bearing deposits		3,830,839			3,520,348			3,494,211			3,645,674			3,709,988			9	%		3	%
Time deposits		924,025			977,107			1,025,788			998,762			1,004,887			(5	)%		(8	)%

Total interest-bearing core deposits		11,438,613			11,139,614			11,477,874			11,161,325			11,308,465			3	%		1	%
Certificates of deposit $100,000 and more		545,845			580,760			594,536			542,244			516,785			(6	)%		6	%
Federal funds purchased		1,161,594			1,236,763			1,119,273			1,224,070			1,479,316			(6	)%		(21	)%
Securities sold under agreements to repurchase		454,937			446,894			452,940			480,960			572,666			2	%		(21	)%
Capital markets trading liabilities		607,114			567,531			598,195			718,309			779,409			7	%		(22	)%
Other short-term borrowings		184,721			219,593			243,195			525,493			209,376			(16	)%		(12	)%
Term borrowings (Restricted - $.1 billion) (a) (d)		1,702,107			1,764,476			1,792,250			2,007,372			2,221,297			(4	)%		(23	)%

Total interest-bearing liabilities		16,094,931			15,955,631			16,278,263			16,659,773			17,087,314			1	%		(6	)%

Noninterest-bearing deposits		4,536,080			4,559,023			4,542,127			4,493,440			4,441,411			(1	)%		2	%
Capital markets payables		33,144			32,896			57,275			58,435			57,859			1	%		(43	)%
Derivative liabilities		152,596			159,575			161,611			184,192			194,892			(4	)%		(22	)%
Other liabilities		563,045			666,312			660,458			598,854			683,596			(15	)%		(18	)%

Total liabilities (Restricted - $.1 billion) (a)		21,379,796			21,373,437			21,699,734			21,994,694			22,465,072				*		(5	)%

Equity:
Common stock		147,751			147,724			149,000			150,468			151,613				*		(3	)%
Capital surplus		1,417,642			1,414,810			1,418,259			1,430,998			1,476,797				*		(4	)%
Undivided profits		714,988			691,958			715,451			771,953			742,070			3	%		(4	)%
Accumulated other comprehensive loss, net		(135,163	)		(173,673	)		(191,866	)		(156,178	)		(150,093	)		(22	)%		(10	)%
Preferred stock		95,624			95,624			95,624			95,624			63,831				*		50	%
Noncontrolling interest		295,431			295,431			295,431			295,259			295,257				*			*

Total equity		2,536,273			2,471,874			2,481,899			2,588,124			2,579,475			3	%		(2	)%

Total liabilities and equity	$	23,916,069		$	23,845,311		$	24,181,633		$	24,582,818		$	25,044,547				*		(5	)%

*	Amount is less than one percent.

(a)	Restricted balances parenthetically presented are quarterly averages as of March 31, 2014.

(b)	Includes loans on nonaccrual status.

(c)	Includes excess balances held at Fed.

(d)	In 2Q13 $350.0 million of subordinated notes matured.

FHN CONSOLIDATED NET INTEREST INCOME (a)

Quarterly, Unaudited


																1Q14 Changes vs.
(Thousands)	1Q14			4Q13			3Q13			2Q13			1Q13			4Q13			1Q13

Interest Income:
Loans, net of unearned income (b)	$	140,487		$	147,322		$	151,504		$	153,070		$	154,955			(5	)%		(9	)%
Loans held-for-sale		3,215			3,253			3,058			3,169			3,502			(1	)%		(8	)%
Investment securities:
U.S. treasuries		5			4			10			11			8			25	%		(38	)%
U.S. government agencies		20,837			19,020			18,537			18,321			18,507			10	%		13	%
States and municipalities		117			21			21			25			23			NM			NM
Other		2,281			2,307			2,355			2,315			2,332			(1	)%		(2	)%

Total investment securities		23,240			21,352			20,923			20,672			20,870			9	%		11	%

Capital markets securities inventory		8,063			8,631			8,425			8,467			7,901			(7	)%		2	%
Mortgage banking trading securities		159			247			403			452			489			(36	)%		(67	)%
Other earning assets:
Federal funds sold		53			48			73			66			61			10	%		(13	)%
Securities purchased under agreements to resell (c)		(192	)		(99	)		(171	)		(189	)		44			(94	)%		NM
Interest-bearing cash		546			343			289			197			364			59	%		50	%

Total other earning assets		407			292			191			74			469			39	%		(13	)%

Interest income	$	175,571		$	181,097		$	184,504		$	185,904		$	188,186			(3	)%		(7	)%


Interest Expense:
Interest-bearing deposits:
Savings	$	3,083		$	3,205		$	3,471		$	3,689		$	4,397			(4	)%		(30	)%
Other interest-bearing deposits		818			772			817			1,013			1,145			6	%		(29	)%
Time deposits		3,062			3,585			4,013			4,064			4,217			(15	)%		(27	)%

Total interest-bearing core deposits		6,963			7,562			8,301			8,766			9,759			(8	)%		(29	)%
Certificates of deposit $100,000 and more (d)		1,023			873			1,658			1,550			1,561			17	%		(34	)%
Federal funds purchased		726			791			716			777			932			(8	)%		(22	)%
Securities sold under agreements to repurchase		118			126			148			134			268			(6	)%		(56	)%
Capital markets trading liabilities		3,571			3,442			3,632			3,354			3,196			4	%		12	%
Other short-term borrowings		261			222			239			245			106			18	%		NM
Term borrowings		8,563			8,902			9,078			9,146			9,195			(4	)%		(7	)%

Interest expense		21,225			21,918			23,772			23,972			25,017			(3	)%		(15	)%

Net interest income - tax equivalent basis		154,346			159,179			160,732			161,932			163,169			(3	)%		(5	)%
Fully taxable equivalent adjustment		(1,987	)		(2,044	)		(1,894	)		(1,913	)		(1,787	)		3	%		(11	)%

Net interest income	$	152,359		$	157,135		$	158,838		$	160,019		$	161,382			(3	)%		(6	)%

NM - Not meaningful

(a)	Net interest income adjusted to a FTE basis.

(b)	Includes interest on loans in nonaccrual status.

(c)	1Q14, 4Q13, 3Q13 and 2Q13 driven by negative market rates on reverse repurchase agreements.

(d)	1Q14 and 4Q13 include the effect of amortizing the valuation adjustment for acquired time deposits related to the MNB acquisition.

FHN CONSOLIDATED AVERAGE BALANCE SHEET: YIELDS AND RATES

Quarterly, Unaudited


	1Q14			4Q13			3Q13			2Q13			1Q13

Assets:
Earning assets (a):
Loans, net of unearned income:
Commercial loans		3.60	%		3.66	%		3.69	%		3.68	%		3.70	%
Retail loans		4.01			4.07			4.06			4.12			4.16

Total loans, net of unearned income (b)		3.77			3.83			3.85			3.86			3.89

Loans held-for-sale		3.50			3.53			3.23			3.26			3.57
Investment securities:
U.S. treasuries		0.05			0.04			0.09			0.11			0.07
U.S. government agencies		2.59			2.57			2.56			2.51			2.63
States and municipalities (c)		2.41			0.56			0.55			0.65			0.59
Other		4.31			4.02			4.20			4.23			4.30

Total investment securities		2.66			2.63			2.63			2.58			2.70

Capital markets securities inventory		2.93			2.98			2.91			2.59			2.41
Mortgage banking trading securities		9.16			7.79			10.36			11.02			11.19
Other earning assets:
Federal funds sold		0.99			0.98			1.01			0.99			1.02
Securities purchased under agreements to resell (d)		(0.13	)		(0.07	)		(0.11	)		(0.11	)		0.02
Interest-bearing cash		0.23			0.22			0.21			0.20			0.23

Total other earning assets		0.10			0.10			0.07			0.03			0.13

Interest income/total earning assets		3.27	%		3.39	%		3.41	%		3.40	%		3.40	%


Liabilities:
Interest-bearing liabilities:
Interest-bearing deposits:
Savings		0.19	%		0.19	%		0.20	%		0.23	%		0.27	%
Other interest-bearing deposits		0.09			0.09			0.09			0.11			0.13
Time deposits		1.34			1.46			1.55			1.63			1.70

Total interest-bearing core deposits		0.25			0.27			0.29			0.32			0.35
Certificates of deposit $100,000 and more (e)		0.76			0.60			1.11			1.15			1.23
Federal funds purchased		0.25			0.25			0.25			0.25			0.26
Securities sold under agreements to repurchase		0.11			0.11			0.13			0.11			0.19
Capital markets trading liabilities		2.39			2.41			2.41			1.87			1.66
Other short-term borrowings		0.57			0.40			0.39			0.19			0.21
Term borrowings (f)		2.01			2.02			2.03			1.82			1.66

Interest expense/total interest-bearing liabilities		0.53			0.55			0.58			0.58			0.59

Net interest spread		2.74	%		2.84	%		2.83	%		2.82	%		2.81	%
Effect of interest-free sources used to fund earning assets		0.14			0.14			0.14			0.14			0.14

Net interest margin		2.88	%		2.98	%		2.97	%		2.96	%		2.95	%

Yields are adjusted to a FTE basis. Refer to the Non-GAAP to GAAP Reconciliation on page 22 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)	1Q14 increase driven by the yield on an HTM municipal bond.

(d)	1Q14, 4Q13, 3Q13 and 2Q13 driven by negative market rates on reverse repurchase agreements.

(e)	1Q14 and 4Q13 rate includes the effect of amortizing the valuation adjustment for acquired time deposits related to the MNB acquisition.

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

FHN CAPITAL HIGHLIGHTS

Quarterly, Unaudited


																1Q14 Changes vs.
(Thousands)	1Q14			4Q13			3Q13			2Q13			1Q13			4Q13			1Q13

Tier 1 capital (a) (b)	$	2,666,485		$	2,618,976		$	2,555,140		$	2,712,398		$	2,738,558			2	%		(3	)%
Tier 2 capital (a)		382,472			444,655			449,100			463,735			510,847			(14	)%		(25	)%

Total capital (a) (b)	$	3,048,957		$	3,063,631		$	3,004,240		$	3,176,133		$	3,249,405				*		(6	)%


Risk weighted assets (“RWA”) (a)	$	18,773,300		$	18,878,594		$	19,236,793		$	20,419,119		$	20,192,003			(1	)%		(7	)%
Tier 1 ratio (a)		14.20	%		13.87	%		13.28	%		13.28	%		13.56	%
Tier 2 ratio (a)		2.04	%		2.36	%		2.34	%		2.27	%		2.53	%

Total capital ratio (a)		16.24	%		16.23	%		15.62	%		15.55	%		16.09	%


Tier 1 common ratio to risk weighted assets (a) (c)		11.06	%		10.75	%		10.21	%		10.39	%		10.64	%
Leverage ratio (a)		11.19	%		11.04	%		10.60	%		11.07	%		10.97	%
Total equity to total assets		10.63	%		10.51	%		10.20	%		10.25	%		10.48	%
Adjusted tangible common equity to risk weighted assets (“TCE/RWA”) (a) (c) (d)		10.61	%		10.37	%		9.71	%		9.71	%		9.93	%
Tangible common equity/tangible assets (“TCE/TA”) (c) (e)		8.37	%		8.24	%		7.93	%		8.07	%		8.33	%
Period-end shares outstanding (thousands)		236,586			236,370			236,328			240,555			241,225				*		(2	)%
Cash dividends declared per share	$	0.05		$	0.05		$	0.05		$	0.05		$	0.05				*			*
Book value per common share (f)	$	9.10		$	8.93		$	8.64		$	8.96		$	9.16
Tangible book value per common share (c) (f)	$	8.41		$	8.23		$	7.95		$	8.28		$	8.51
Market capitalization (millions)	$	2,919.5		$	2,753.7		$	2,597.2		$	2,694.2		$	2,576.3

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 22 of this financial supplement.

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

(e)	Calculated using period-end balances.

(f)	2Q13 decrease due to $40 million prepaid share repurchase agreement, shares were delivered in 3Q13.

FHN BUSINESS SEGMENT HIGHLIGHTS

Quarterly, Unaudited


																1Q14 Changes vs.
(Thousands)	1Q14			4Q13			3Q13			2Q13			1Q13			4Q13			1Q13

Regional Banking
Net interest income	$	142,010		$	146,427		$	149,541		$	148,220		$	147,120			(3	)%		(3	)%
Noninterest income		59,992			62,806			63,883			61,885			59,144			(4	)%		1	%

Total revenues		202,002			209,233			213,424			210,105			206,264			(3	)%		(2	)%
Provision/(provision credit) for loan losses		12,990			2,585			5,159			13,201			(2,485	)		NM			NM
Noninterest expense		133,050			139,186			131,961			129,584			131,077			(4	)%		2	%

Income before income taxes		55,962			67,462			76,304			67,320			77,672			(17	)%		(28	)%
Provision for income taxes		19,880			24,049			27,554			24,146			28,221			(17	)%		(30	)%

Net income	$	36,082		$	43,413		$	48,750		$	43,174		$	49,451			(17	)%		(27	)%


Capital Markets
Net interest income	$	3,478		$	4,301		$	3,811		$	4,097		$	3,968			(19	)%		(12	)%
Noninterest income		56,758			59,509			64,115			68,199			76,612			(5	)%		(26	)%

Total revenues		60,236			63,810			67,926			72,296			80,580			(6	)%		(25	)%
Noninterest expense		52,594			53,130			57,930			59,822			61,533			(1	)%		(15	)%

Income before income taxes		7,642			10,680			9,996			12,474			19,047			(28	)%		(60	)%
Provision for income taxes		2,845			3,981			3,765			4,651			7,222			(29	)%		(61	)%

Net income	$	4,797		$	6,699		$	6,231		$	7,823		$	11,825			(28	)%		(59	)%


Corporate
Net interest income/(expense)	$	(9,113	)	$	(10,413	)	$	(11,654	)	$	(11,182	)	$	(10,059	)		12	%		9	%
Noninterest income		13,215			7,831			6,558			3,811			7,855			69	%		68	%

Total revenues		4,102			(2,582	)		(5,096	)		(7,371	)		(2,204	)		NM			NM
Noninterest expense		19,578			18,770			21,739			17,141			17,613			4	%		11	%

Loss before income taxes		(15,476	)		(21,352	)		(26,835	)		(24,512	)		(19,817	)		28	%		22	%
Benefit for income taxes		(11,766	)		(19,004	)		(16,593	)		(15,698	)		(12,083	)		38	%		3	%

Net loss	$	(3,710	)	$	(2,348	)	$	(10,242	)	$	(8,814	)	$	(7,734	)		(58	)%		52	%


Non-Strategic
Net interest income	$	15,984		$	16,820		$	17,140		$	18,884		$	20,353			(5	)%		(21	)%
Noninterest income		15,765			4,897			15,919			8,737			12,816			NM			23	%

Total revenues		31,749			21,717			33,059			27,621			33,169			46	%		(4	)%
Provision/(provision credit) for loan losses		(2,990	)		12,415			4,841			1,799			17,485			NM			NM
Noninterest expense		14,992			46,011			221,926			20,861			30,317			(67	)%		(51	)%

Income/(loss) before income taxes		19,747			(36,709	)		(193,708	)		4,961			(14,633	)		NM			NM
Provision/(benefit) for income taxes		7,686			(42,839	)		(45,820	)		1,909			(5,630	)		NM			NM

Income/(loss) from continuing operations		12,061			6,130			(147,888	)		3,052			(9,003	)		97	%		NM
Income/(loss) from discontinued operations, net of tax		—			(6	)		123			1			430			NM			NM

Net income/(loss)	$	12,061		$	6,124		$	(147,765	)	$	3,053		$	(8,573	)		97	%		NM


Total Consolidated
Net interest income	$	152,359		$	157,135		$	158,838		$	160,019		$	161,382			(3	)%		(6	)%
Noninterest income		145,730			135,043			150,475			142,632			156,427			8	%		(7	)%

Total revenues		298,089			292,178			309,313			302,651			317,809			2	%		(6	)%
Provision for loan losses		10,000			15,000			10,000			15,000			15,000			(33	)%		(33	)%
Noninterest expense		220,214			257,097			433,556			227,408			240,540			(14	)%		(8	)%

Income/(loss) before income taxes		67,875			20,081			(134,243	)		60,243			62,269			NM			9	%
Provision/(benefit) for income taxes		18,645			(33,813	)		(31,094	)		15,008			17,730			NM			5	%

Income/(loss) from continuing operations		49,230			53,894			(103,149	)		45,235			44,539			(9	)%		11	%
Income/(loss) from discontinued operations, net of tax		—			(6	)		123			1			430			NM			NM

Net income/(loss)	$	49,230		$	53,888		$	(103,026	)	$	45,236		$	44,969			(9	)%		9	%

NM - Not meaningful

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

FHN REGIONAL BANKING

Quarterly, Unaudited


																1Q14 Changes vs.
	1Q14			4Q13			3Q13			2Q13			1Q13			4Q13			1Q13

Income Statement (thousands)
Net interest income	$	142,010		$	146,427		$	149,541		$	148,220		$	147,120			(3	)%		(3	)%
Provision/(provision credit) for loan losses		12,990			2,585			5,159			13,201			(2,485	)		NM			NM
Noninterest income:
NSF / Overdraft fees (a)		9,156			11,411			11,660			10,250			10,031			(20	)%		(9	)%
Cash management fees		8,916			9,063			8,760			9,133			9,330			(2	)%		(4	)%
Debit card income		2,655			2,739			2,782			2,695			2,534			(3	)%		5	%
Other		4,864			5,112			5,126			5,183			4,909			(5	)%		(1	)%

Total deposit transactions and cash management		25,591			28,325			28,328			27,261			26,804			(10	)%		(5	)%
Brokerage, management fees and commissions		12,276			11,505			10,868			10,540			9,348			7	%		31	%
Trust services and investment management		6,760			6,612			6,665			6,966			6,343			2	%		7	%
Bankcard income		4,365			4,815			5,089			5,054			4,691			(9	)%		(7	)%
Other service charges		2,559			2,873			3,451			3,255			2,873			(11	)%		(11	)%
Miscellaneous revenue		8,441			8,676			9,482			8,809			9,085			(3	)%		(7	)%

Total noninterest income		59,992			62,806			63,883			61,885			59,144			(4	)%		1	%

Noninterest expense:
Employee compensation, incentives, and benefits		50,318			50,921			51,656			50,438			50,386			(1	)%			*
Other		82,732			88,265			80,305			79,146			80,691			(6	)%		3	%

Total noninterest expense		133,050			139,186			131,961			129,584			131,077			(4	)%		2	%

Income before income taxes	$	55,962		$	67,462		$	76,304		$	67,320		$	77,672			(17	)%		(28	)%

PPNR (Non-GAAP) (b)	$	68,952		$	70,047		$	81,463		$	80,521		$	75,187			(2	)%		(8	)%

Efficiency ratio (c)		65.87	%		66.52	%		61.83	%		61.68	%		63.55	%


Balance Sheet (millions)
Average loans	$	11,897		$	11,972		$	12,184		$	12,225		$	12,237			(1	)%		(3	)%
Average other earning assets		50			43			54			53			53			16	%		(6	)%
Total average earning assets		11,947			12,015			12,238			12,278			12,290			(1	)%		(3	)%
Average core deposits		14,857			14,466			14,484			14,624			14,560			3	%		2	%
Average other deposits		546			581			595			542			517			(6	)%		6	%
Total average deposits		15,403			15,047			15,079			15,166			15,077			2	%		2	%
Total period-end deposits		15,723			15,480			14,862			15,562			15,225			2	%		3	%
Total period-end assets		12,891			13,019			12,909			13,496			12,845			(1	)%			*

Net interest margin (d)		4.88	%		4.90	%		4.91	%		4.90	%		4.90	%
Net interest spread		3.41			3.50			3.49			3.46			3.46
Loan yield		3.61			3.71			3.74			3.72			3.75
Deposit average yield		0.20			0.21			0.25			0.26			0.29


Key Statistics
Financial center locations		172			172			182			183			171				*		1	%

NM - Not meaningful.

*	Amount is less than one percent.

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

(a)	1Q14 decline primarily attributable to seasonality in NSF fees.

(b)	Pre-tax, pre-provision, net revenue is a Non-GAAP number and is calculated by adding the provision/(provision credit) for loan losses (GAAP) to Income before income taxes (GAAP).

(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 22 of this supplement.

FHN CAPITAL MARKETS

Quarterly, Unaudited


																1Q14 Changes vs.
	1Q14			4Q13			3Q13			2Q13			1Q13			4Q13			1Q13

Income Statement (thousands)
Net interest income	$	3,478		$	4,301		$	3,811		$	4,097		$	3,968			(19	)%		(12	)%
Noninterest income:
Fixed income		49,614			50,937			54,428			58,535			67,953			(3	)%		(27	)%
Other		7,144			8,572			9,687			9,664			8,659			(17	)%		(17	)%

Total noninterest income		56,758			59,509			64,115			68,199			76,612			(5	)%		(26	)%
Noninterest expense		52,594			53,130			57,930			59,822			61,533			(1	)%		(15	)%

Income before income taxes	$	7,642		$	10,680		$	9,996		$	12,474		$	19,047			(28	)%		(60	)%


Efficiency ratio (a)		87.31	%		83.26	%		85.28	%		82.75	%		76.36	%
Fixed income average daily revenue	$	813		$	822		$	850		$	915		$	1,133			(1	)%		(28	)%


Balance Sheet (millions)
Average trading inventory	$	1,102		$	1,160		$	1,156		$	1,310		$	1,309			(5	)%		(16	)%
Average other earning assets		628			588			604			714			770			7	%		(18	)%
Total average earning assets		1,730			1,748			1,760			2,024			2,079			(1	)%		(17	)%
Total period-end assets		2,094			1,511			2,275			2,299			2,592			39	%		(19	)%

Net interest margin (b)		0.82	%		1.02	%		0.89	%		0.84	%		0.78	%

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 22 of this supplement.

FHN CORPORATE

Quarterly, Unaudited


																1Q14 Changes vs.
	1Q14			4Q13			3Q13			2Q13			1Q13			4Q13			1Q13

Income Statement (thousands)
Net interest income/(expense)	$	(9,113	)	$	(10,413	)	$	(11,654	)	$	(11,182	)	$	(10,059	)		12	%		9	%
Noninterest income excluding securities gains/(losses)		7,558			5,649			6,690			4,174			7,825			34	%		(3	)%
Securities gains/(losses), net (a)		5,657			2,182			(132	)		(363	)		30			NM			NM
Noninterest expense		19,578			18,770			21,739			17,141			17,613			4	%		11	%

Loss before income taxes	$	(15,476	)	$	(21,352	)	$	(26,835	)	$	(24,512	)	$	(19,817	)		28	%		22	%


Average Balance Sheet (millions)
Average loans	$	169		$	182		$	196		$	217		$	226			(7	)%		(25	)%
Total earning assets	$	4,617		$	4,026		$	3,900		$	3,802		$	3,959			15	%		17	%
Net interest margin (b)		(0.83	)%		(1.00	)%		(1.16	)%		(1.19	)%		(1.07	)%

NM - Not meaningful

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

(a)	1Q14 and 4Q13 include gains of $5.6 million and $3.3 million, respectively, on the sale of cost method investments; 4Q13 also includes a $1.1 million other-than-temporary impairment of an investment.

(b)	Net interest margin is computed using total net interest income adjusted for FTE. Refer to the Non-GAAP Reconciliation on page 22 of this supplement.

FHN NON-STRATEGIC

Quarterly, Unaudited


																1Q14 Changes vs.
	1Q14			4Q13			3Q13			2Q13			1Q13			4Q13			1Q13

Income Statement (thousands)
Net interest income	$	15,984		$	16,820		$	17,140		$	18,884		$	20,353			(5	)%		(21	)%
Noninterest income excluding securities gains/(losses) (a)		15,765			4,897			15,919			8,733			12,822			NM			23	%
Securities gains/(losses), net		—			—			—			4			(6	)		NM			NM
Noninterest expense:
Repurchase and foreclosure provision		—			(30,000	)		200,000			—			—			NM			NM
Other expenses (b)		14,992			76,011			21,926			20,861			30,317			(80	)%		(51	)%

Total noninterest expense		14,992			46,011			221,926			20,861			30,317			(67	)%		(51	)%
Provision/(provision credit) for loan losses		(2,990	)		12,415			4,841			1,799			17,485			NM			NM

Income/(loss) before income taxes	$	19,747		$	(36,709	)	$	(193,708	)	$	4,961		$	(14,633	)		NM			NM


Average Balance Sheet (millions)
Loans	$	2,993		$	3,119		$	3,272		$	3,451		$	3,634			(4	)%		(18	)%
Loans held-for-sale		344			343			349			360			354				*		(3	)%
Trading securities		7			13			16			16			17			(46	)%		(59	)%
Other assets		60			342			350			340			370			(82	)%		(84	)%
Total assets		3,404			3,817			3,987			4,167			4,375			(11	)%		(22	)%
Net interest margin (c)		1.92	%		1.93	%		1.88	%		1.97	%		2.04	%
Efficiency ratio (d)		47.22	%		NM			NM			75.54	%		91.39	%


Mortgage Warehouse - Period-end (millions)
Ending warehouse balance (loans held-for-sale)	$	332		$	336		$	346		$	358		$	362			(1	)%		(8	)%


Ending servicing portfolio (millions) (e) (f)	$	1,679		$	9,943		$	15,033		$	16,025		$	17,055			(83	)%		(90	)%

NM - Not meaningful

*	Amount is less than one percent.

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

(a)

1Q14 increase reflects the receipt of previously unrecognized servicing fees in conjunction with transfers of servicing in 1Q14, partially offset by a $2.0 million loss on the deconsolidation of a securitization trust; 3Q13 increase reflects the effect of the terms of the agreement to sell servicing, somewhat offset by a $2.2 million negative adjustment made as a result of estimated costs for obligations associated with the agreement to sell servicing; 2Q13 and 1Q13 include a gain of $1.0 million and $2.4 million, respectively, from a LOCOM reversal associated with a TRUP loan payoff.

(b)	4Q13 includes $57.0 million net loss accruals related to legal matters.

(c)	Net interest margin is computed using total net interest income adjusted for FTE. Refer to the Non-GAAP to GAAP Reconciliation on page 22 of this supplement.

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

(e)	Includes mortgage loans serviced from FHN’s legacy mortgage banking business, legacy equity lending serviced for others, and mortgage loans in portfolio and warehouse.

(f)	In 3Q13 FHN signed a definitive agreement to sell substantially all remaining legacy mortgage servicing; transfers of servicing began in fourth quarter.

FHN ASSET QUALITY: CONSOLIDATED

Quarterly, Unaudited


																1Q14 Changes vs.
(Thousands)	1Q14			4Q13			3Q13			2Q13			1Q13			4Q13			1Q13
Allowance for Loan Losses Walk-Forward
Beginning reserve	$	253,809		$	255,710		$	261,934		$	265,218		$	276,963			(1	)%		(8	)%
Provision		10,000			15,000			10,000			15,000			15,000			(33	)%		(33	)%
Charge-offs		(24,692	)		(29,000	)		(26,046	)		(30,272	)		(36,100	)		(15	)%		(32	)%
Recoveries		8,129			12,099			9,822			11,988			9,355			(33	)%		(13	)%

Ending balance (Restricted - $2.0 million) (a)	$	247,246		$	253,809		$	255,710		$	261,934		$	265,218			(3	)%		(7	)%

Reserve for unfunded commitments		2,882			3,017			2,956			2,976			3,439			(4	)%		(16	)%
Total allowance for loan losses plus reserve for unfunded commitments	$	250,128		$	256,826		$	258,666		$	264,910		$	268,657			(3	)%		(7	)%


Allowance for Loan Losses
Regional Banking	$	128,234		$	121,027		$	125,440		$	124,627		$	120,161			6	%		7	%
Non-Strategic		119,012			132,782			130,270			137,307			145,057			(10	)%		(18	)%
Corporate (b)		NM			NM			NM			NM			NM			NM			NM

Total allowance for loan losses	$	247,246		$	253,809		$	255,710		$	261,934		$	265,218			(3	)%		(7	)%


Nonperforming Assets
Regional Banking
Nonperforming loans	$	83,275		$	87,324		$	118,507		$	135,902		$	124,824			(5	)%		(33	)%
Foreclosed real estate (c) (d)		27,705			28,806			33,594			34,561			13,142			(4	)%		NM

Total Regional Banking	$	110,980		$	116,130		$	152,101		$	170,463		$	137,966			(4	)%		(20	)%

Non-Strategic
Nonperforming loans	$	153,972		$	163,104		$	164,534		$	173,705		$	129,240			(6	)%		19	%
Nonperforming loans held-for-sale after fair value adjustments		61,631			61,139			65,972			67,077			60,623			1	%		2	%
Foreclosed real estate (c)		15,265			16,947			16,437			16,781			19,513			(10	)%		(22	)%

Total Non-Strategic	$	230,868		$	241,190		$	246,943		$	257,563		$	209,376			(4	)%		10	%

Corporate
Nonperforming loans	$	3,672		$	4,598		$	5,001		$	4,526		$	1,936			(20	)%		90	%

Total nonperforming assets (e)	$	345,520		$	361,918		$	404,045		$	432,552		$	349,278			(5	)%		(1	)%


Net Charge-Offs
Regional Banking	$	5,783		$	6,997		$	4,347		$	8,735		$	5,564			(17	)%		4	%
Non-Strategic		10,780			9,904			11,877			9,549			21,181			9	%		(49	)%

Total net charge-offs	$	16,563		$	16,901		$	16,224		$	18,284		$	26,745			(2	)%		(38	)%


Consolidated Key Ratios (f)
NPL % (e)		1.59	%		1.66	%		1.87	%		1.94	%		1.61	%
NPA % (d) (e)		1.87			1.95			2.19			2.25			1.81
Net charge-offs %		0.45			0.44			0.41			0.46			0.67
Allowance / loans		1.64			1.65			1.66			1.62			1.67
Allowance / NPL		1.03x			1.00x			0.89x			0.83x			1.04x
Allowance / NPA		0.87x			0.84x			0.76x			0.72x			0.92x
Allowance / charge-offs		3.68x			3.79x			3.97x			3.57x			2.45x


Other
Loans past due 90 days or more (g)	$	60,734		$	69,863		$	75,109		$	65,367		$	77,568			(13	)%		(22	)%
Guaranteed portion (g)		35,063			35,260			37,509			33,483			35,051			(1	)%			*
Foreclosed real estate from government insured loans		23,065			25,809			21,596			18,560			22,017			(11	)%		5	%
Period-end loans, net of unearned income (millions)		15,119			15,389			15,409			16,198			15,890			(2	)%		(5	)%
Remaining unfunded commitments (millions)		8,238			8,191			8,184			7,645			7,727			1	%		7	%

NM - Not meaningful

*	Amount is less than one percent.

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

(a)	Restricted balances parenthetically presented are as of March 31, 2014.

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

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

(d)	2Q13 increase primarily relates to acquired foreclosed real estate from the MNB acquisition.

(e)	2Q13 increase primarily relates to second liens placed on nonaccrual based on third party data obtained on the performance status of non-FHN serviced first liens.

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

(g)	Includes loans held-for-sale.

FHN ASSET QUALITY: CONSOLIDATED

Quarterly, Unaudited


																1Q14 Changes vs.
	1Q14			4Q13			3Q13			2Q13			1Q13			4Q13			1Q13

Key Portfolio Details
C&I
Period-end loans ($ millions)	$	7,753		$	7,924		$	7,747		$	8,368		$	8,091			(2	)%		(4	)%

30+ Delinq. % (a)		0.27	%		0.13	%		0.11	%		0.13	%		0.17	%
NPL %		0.68			1.01			1.33			1.45			1.40
Charge-offs % (qtr. annualized)		0.22			0.21			0.08			0.14			0.10

Allowance / loans %		0.94	%		1.09	%		1.18	%		1.12	%		1.06	%
Allowance / charge-offs		4.27x			5.33x			14.16x			8.34x			10.94x


Commercial Real Estate
Period-end loans ($ millions) (b)	$	1,152		$	1,133		$	1,174		$	1,219		$	1,117			2	%		3	%

30+ Delinq. % (a)		1.61	%		0.90	%		0.60	%		0.54	%		0.42	%
NPL %		1.30			1.60			2.13			2.74			3.46
Charge-offs % (qtr. annualized)		0.12			NM			NM			NM			0.26

Allowance / loans % (c)		1.35	%		0.94	%		0.94	%		1.14	%		1.36	%
Allowance / charge-offs		10.97x			NM			NM			NM			5.08x


Consumer Real Estate
Period-end loans ($ millions)	$	5,258		$	5,333		$	5,458		$	5,549		$	5,590			(1	)%		(6	)%

30+ Delinq. % (a)		1.01	%		1.13	%		1.05	%		1.10	%		1.21	%
NPL % (d)		2.51			2.20			2.23			2.15			1.21
Charge-offs % (qtr. annualized)		0.56			0.62			0.87			0.96			1.33

Allowance / loans %		2.35	%		2.38	%		2.21	%		2.18	%		2.35	%
Allowance / charge-offs		4.17x			3.79x			2.54x			2.26x			1.75x


Permanent Mortgage
Period-end loans ($ millions)	$	622		$	662		$	698		$	746		$	793			(6	)%		(22	)%

30+ Delinq. % (a)		1.44	%		2.62	%		2.48	%		2.51	%		2.16	%
NPL %		6.46			5.76			5.30			5.14			4.37
Charge-offs % (qtr. annualized)		1.04			1.46			0.29			0.62			1.64

Allowance / loans %		3.62	%		3.40	%		3.66	%		3.63	%		3.21	%
Allowance / charge-offs		3.39x			2.27x			12.26x			5.64x			1.93x


Credit Card and Other
Period-end loans ($ millions)	$	334		$	337		$	332		$	316		$	299			(1	)%		12	%

30+ Delinq. % (a)		1.30	%		1.35	%		1.11	%		1.00	%		1.25	%
NPL %		0.42			0.42			0.42			0.54			0.57
Charge-offs % (qtr. annualized)		3.71			3.05			2.61			2.22			3.25

Allowance / loans %		3.91	%		2.22	%		2.09	%		2.07	%		2.38	%
Allowance / charge-offs		1.05x			0.73x			0.82x			0.97x			0.75x

NM - Not meaningful

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

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

(b)	2Q13 increase is related to MNB acquisition.

(c)	2Q13 decline is related to MNB loans that were acquired at fair value with no allowance at acquisition.

(d)	NPL levels affected by the impact of placing second liens on nonaccrual based on third party data obtained on the performance status of non-FHN serviced first liens beginning in 2Q13.

FHN ASSET QUALITY: REGIONAL BANKING

Quarterly, Unaudited


																1Q14 Changes vs.
	1Q14			4Q13			3Q13			2Q13			1Q13			4Q13			1Q13

Total Regional Banking
Period-end loans ($ millions)	$	12,042		$	12,167		$	12,039		$	12,634		$	12,127			(1	)%		(1	)%

30+ Delinq. % (a)		0.52	%		0.38	%		0.35	%		0.31	%		0.36	%
NPL %		0.69			0.72			0.98			1.08			1.03
Charge-offs % (qtr. annualized)		0.20			0.23			0.14			0.29			0.18

Allowance / loans %		1.06	%		0.99	%		1.04	%		0.99	%		0.99	%
Allowance / charge-offs		5.47x			4.36x			7.27x			3.56x			5.32x


Key Portfolio Details
C&I
Period-end loans ($ millions)	$	7,287		$	7,431		$	7,254		$	7,865		$	7,580			(2	)%		(4	)%

30+ Delinq. % (a)		0.26	%		0.14	%		0.12	%		0.13	%		0.17	%
NPL %		0.55			0.59			0.92			0.96			0.89
Charge-offs % (qtr. annualized)		0.07			0.24			0.07			0.27			0.10

Allowance / loans %		0.93	%		0.97	%		1.06	%		0.99	%		0.92	%
Allowance / charge-offs		13.74x			4.24x			15.09x			3.81x			8.71x


Commercial Real Estate
Period-end loans ($ millions) (b)	$	1,145		$	1,124		$	1,164		$	1,202		$	1,098			2	%		4	%

30+ Delinq. % (a) (c)		1.62	%		0.91	%		0.61	%		0.55	%		0.43	%
NPL %		1.05			1.35			1.87			2.38			3.01
Charge-offs % (qtr. annualized)		0.10			NM			NM			NM			0.34

Allowance / loans % (d)		1.31	%		0.88	%		0.88	%		1.03	%		1.25	%
Allowance / charge-offs		13.38x			NM			NM			NM			3.59x


Consumer Real Estate
Period-end loans ($ millions)	$	3,280		$	3,278		$	3,291		$	3,253		$	3,152				*		4	%

30+ Delinq. % (a)		0.62	%		0.65	%		0.66	%		0.58	%		0.68	%
NPL % (e)		0.92			0.85			0.90			0.97			0.74
Charge-offs % (qtr. annualized)		0.18			0.12			0.14			0.31			0.07

Allowance / loans %		0.99	%		0.96	%		0.95	%		0.87	%		0.96	%
Allowance / charge-offs		5.42x			7.72x			6.84x			2.85x			13.36x


Credit Card, Permanent Mortgage, and Other
Period-end loans ($ millions)	$	330		$	334		$	330		$	314		$	297			(1	)%		11	%

30+ Delinq. % (a)		1.38	%		1.55	%		1.29	%		1.14	%		1.40	%
NPL %		0.27			0.16			0.20			0.20			0.34
Charge-offs % (qtr. annualized)		3.43			2.92			2.52			2.03			2.94

Allowance / loans %		3.91	%		2.21	%		2.04	%		2.02	%		2.26	%
Allowance / charge-offs		1.13x			0.76x			0.83x			1.03x			0.79x


ASSET QUALITY: CORPORATE

Permanent Mortgage
Period-end loans ($ millions)	$	164		$	175		$	185		$	205		$	229			(6	)%		(28	)%

30+ Delinq. % (a)		1.83	%		2.34	%		2.05	%		1.83	%		2.55	%
NPL %		2.24			2.63			2.70			2.21			0.84
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.

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)	2Q13 increase is related to MNB acquisition.

(c)	1Q14 increase is primarily driven by 2 purchase credit impaired loans acquired from MNB.

(d)	2Q13 decline is related to MNB loans that were acquired at fair value with no allowance at acquisition.

(e)	NPL levels affected by the impact of placing second liens on nonaccrual based on third party data obtained on the performance status of non-FHN serviced first liens beginning in 2Q13.

FHN ASSET QUALITY: NON-STRATEGIC

Quarterly, Unaudited


																1Q14 Changes vs.
	1Q14			4Q13			3Q13			2Q13			1Q13			4Q13			1Q13

Total Non-Strategic
Period-end loans ($ millions)	$	2,913		$	3,047		$	3,185		$	3,359		$	3,534			(4	)%		(18	)%

30+ Delinq. % (a)		1.38	%		1.70	%		1.53	%		1.70	%		1.62	%
NPL % (b)		5.28			5.35			5.17			5.17			3.66
Charge-offs % (qtr. annualized)		1.46			1.26			1.44			1.11			2.36

Allowance / loans %		4.08	%		4.36	%		4.09	%		4.09	%		4.10	%
Allowance / charge-offs		2.72x			3.38x			2.76x			3.58x			1.69x


Key Portfolio Details
C&I
Period-end loans ($ millions)	$	466		$	492		$	493		$	503		$	512			(5	)%		(9	)%

30+ Delinq. % (a)		0.43	%		0.06	%		0.04	%		0.04	%		0.08	%
NPL % (c)		2.64			7.33			7.36			9.13			8.95
Charge-offs % (qtr. annualized)		2.48			NM			0.27			NM			NM

Allowance / loans %		1.02	%		2.87	%		2.89	%		3.14	%		3.24	%
Allowance / charge-offs		0.39x			NM			10.61x			NM			NM


Commercial Real Estate
Period-end loans ($ millions)	$	7		$	9		$	10		$	16		$	19			(22	)%		(63	)%

30+ Delinq. % (a)		—	%		—	%		—	%		—	%		—	%
NPL %		40.93			32.30			32.16			29.38			29.86
Charge-offs % (qtr. annualized)		3.46			3.72			1.74			NM			NM

Allowance / loans %		7.43	%		7.98	%		7.55	%		9.56	%		7.58	%
Allowance / charge-offs		1.80x			2.00x			2.93x			NM			NM


Consumer Real Estate
Period-end loans ($ millions)	$	1,978		$	2,055		$	2,167		$	2,297		$	2,438			(4	)%		(19	)%

30+ Delinq. % (a)		1.65	%		1.89	%		1.64	%		1.84	%		1.89	%
NPL % (b)		5.14			4.36			4.26			3.84			1.83
Charge-offs % (qtr. annualized)		1.17			1.39			1.93			1.84			2.90

Allowance / loans %		4.60	%		4.64	%		4.13	%		4.03	%		4.15	%
Allowance / charge-offs		3.86x			3.25x			2.08x			2.12x			1.39x


Permanent Mortgage
Period-end loans ($ millions)	$	446		$	475		$	499		$	527		$	548			(6	)%		(19	)%

30+ Delinq. % (a)		1.21	%		2.59	%		2.55	%		2.70	%		1.91	%
NPL %		7.99			6.96			6.28			6.31			5.78
Charge-offs % (qtr. annualized)		1.46			2.04			0.41			0.89			2.35

Allowance / loans %		5.00	%		4.68	%		5.07	%		5.10	%		4.62	%
Allowance / charge-offs		3.36x			2.25x			12.14x			5.58x			1.93x


Other Consumer
Period-end loans ($ millions)	$	16		$	16		$	16		$	16		$	17				*		(6	)%

30+ Delinq. % (a)		1.95	%		2.33	%		1.63	%		1.99	%		2.26	%
NPL %		9.03			8.66			8.53			10.02			9.61
Charge-offs % (qtr. annualized)		6.83			3.35			2.12			3.72			5.44

Allowance / loans %		2.12	%		2.25	%		3.06	%		2.85	%		2.78	%
Allowance / charge-offs		0.30x			0.66x			1.41x			0.75x			0.50x

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)	NPL levels affected by the impact of placing second liens on nonaccrual based on third party data obtained on the performance status of non-FHN serviced first liens beginning in 2Q13.

(c)	1Q14 NPL decrease related to TRUPs sale.

FHN: PORTFOLIO METRICS

Unaudited

C&I Portfolio: $7.8 Billion (51.3% of Total Loans) as of March 31, 2014


	% OS
General Corporate, Commercial, and Business Banking Loans		86	%
Loans to Mortgage Companies		9	%
Trust Preferred Loans		4	%
Bank Holding Company Loans		1	%

Consumer Real Estate (primarily Home Equity) Portfolio: $5.3 Billion (34.8% of Total Loans)


Origination LTV and FICO for Portfolio as of March 31, 2014	Loan-to-Value
(excludes whole loan insurance)	<=60%			>60% - <=80%			>80% - 90%			>90%
FICO score greater than or equal to 740		11	%		23	%		17	%		8	%
FICO score 720-739		2	%		4	%		4	%		2	%
FICO score 700-719		1	%		4	%		4	%		2	%
FICO score 660-699		2	%		4	%		4	%		3	%
FICO score 620-659		—	%		1	%		1	%		1	%
FICO score less than 620		—	%		1	%		—	%		1	%


Origination LTV and FICO for Portfolio - Regional Bank as of March 31, 2014	Loan-to-Value
(excludes whole loan insurance)	<=60%			>60% - <=80%			>80% - 90%			>90%
FICO score greater than or equal to 740		13	%		24	%		18	%		10	%
FICO score 720-739		1	%		4	%		3	%		2	%
FICO score 700-719		1	%		3	%		2	%		2	%
FICO score 660-699		1	%		4	%		3	%		2	%
FICO score 620-659		1	%		1	%		1	%		1	%
FICO score less than 620		—	%		1	%		1	%		1	%


Origination LTV and FICO for Portfolio - Non-Strategic as of March 31, 2014	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	%		6	%		2	%
FICO score 700-719		2	%		6	%		6	%		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		147		78	%		704			43	%		32	%
2003	$	0.2		129		76	%		720			31	%		38	%
2004	$	0.4		116		80	%		723			21	%		27	%
2005	$	0.7		104		81	%		729			17	%		16	%
2006	$	0.6		93		78	%		732			21	%		17	%
2007	$	0.7		81		80	%		736			26	%		19	%
2008	$	0.3		70		75	%		745			72	%		50	%
2009	$	0.2		58		72	%		749			87	%		57	%
2010	$	0.2		44		81	%		750			92	%		73	%
2011	$	0.4		32		77	%		760			89	%		86	%
2012	$	0.8		21		76	%		763			89	%		91	%
2013	$	0.6		10		77	%		758			86	%		84	%
2014	$	0.1		1		79	%		756			89	%		84	%
Total	$	5.3		64		78	%		743	(a)		55	%		51	%

(a)	743 average portfolio origination FICO; 736 weighted average portfolio FICO (refreshed).

FHN NON-GAAP TO GAAP RECONCILIATION

Quarterly, Unaudited


(Thousands)	1Q14			4Q13			3Q13			2Q13			1Q13
Tangible Common Equity (Non-GAAP)
(A) Total equity (GAAP)	$	2,544,137		$	2,500,751		$	2,433,293		$	2,546,408		$	2,599,727
Less: Noncontrolling interest (a)		295,431			295,431			295,431			295,431			295,257
Less: Preferred stock		95,624			95,624			95,624			95,624			95,624

(B) Total common equity	$	2,153,082		$	2,109,696		$	2,042,238		$	2,155,353		$	2,208,846
Less: Intangible assets (GAAP) (b)		162,950			163,931			162,695			163,623			156,014

(C) Tangible common equity (Non-GAAP)	$	1,990,132		$	1,945,765		$	1,879,543		$	1,991,730		$	2,052,832
Less: Unrealized gains/(losses) on AFS securities, net of tax		(1,762	)		(11,241	)		11,153			9,439			48,591

(D) Adjusted tangible common equity (Non-GAAP) (c)	$	1,991,894		$	1,957,006		$	1,868,390		$	1,982,291		$	2,004,241


Tangible Assets (Non-GAAP)
(E) Total assets (GAAP)	$	23,941,989		$	23,789,833		$	23,858,753		$	24,852,800		$	24,803,048
Less: Intangible assets (GAAP) (b)		162,950			163,931			162,695			163,623			156,014

(F) Tangible assets (Non-GAAP)	$	23,779,039		$	23,625,902		$	23,696,058		$	24,689,177		$	24,647,034


Period-end Shares Outstanding
(G) Period-end shares outstanding		236,586			236,370			236,328			240,555			241,225


Tier 1 Common (Non-GAAP)
(H) Tier 1 capital (d) (e)	$	2,666,485		$	2,618,976		$	2,555,140		$	2,712,398		$	2,738,558
Less: Noncontrolling interest - FTBNA preferred stock (a) (f)		294,816			294,816			294,816			294,816			294,816
Less: Preferred Stock		95,624			95,624			95,624			95,624			95,624
Less: Trust preferred (g)		200,000			200,000			200,000			200,000			200,000

(I) Tier 1 common (Non-GAAP)	$	2,076,045		$	2,028,536		$	1,964,700		$	2,121,958		$	2,148,118


Risk Weighted Assets
(J) Risk weighted assets (d) (e)	$	18,773,300		$	18,878,594		$	19,236,793		$	20,419,119		$	20,192,003


Ratios
(C)/(F) Tangible common equity to tangible assets (“TCE/TA”) (Non-GAAP)		8.37	%		8.24	%		7.93	%		8.07	%		8.33	%
(A)/(E) Total equity to total assets (GAAP)		10.63	%		10.51	%		10.20	%		10.25	%		10.48	%
(C)/(G) Tangible book value per common share (Non-GAAP)	$	8.41		$	8.23		$	7.95		$	8.28		$	8.51
(B)/(G) Book value per common share (GAAP)	$	9.10		$	8.93		$	8.64		$	8.96		$	9.16
(I)/(J) Tier 1 common to risk weighted assets (Non-GAAP) (d)		11.06	%		10.75	%		10.21	%		10.39	%		10.64	%
(H)/(E) Tier 1 capital to total assets (GAAP) (d)		11.14	%		11.01	%		10.71	%		10.91	%		11.04	%
(D)/(J) Adjusted tangible common equity to risk weighted assets (“TCE/RWA”) (Non-GAAP) (c) (d)		10.61	%		10.37	%		9.71	%		9.71	%		9.93	%


Net interest income adjusted for impact of fully taxable equivalent (“FTE”) (Non-GAAP)
Regional Banking
Net interest income (GAAP)	$	142,010		$	146,427		$	149,541		$	148,220		$	147,120
FTE adjustment		1,830			1,909			1,806			1,756			1,670

Net interest income adjusted for impact of FTE (Non-GAAP)	$	143,840		$	148,336		$	151,347		$	149,976		$	148,790


Capital Markets
Net interest income (GAAP)	$	3,478		$	4,301		$	3,811		$	4,097		$	3,968
FTE adjustment		117			128			81			149			109

Net interest income adjusted for impact of FTE (Non-GAAP)	$	3,595		$	4,429		$	3,892		$	4,246		$	4,077


Corporate
Net interest income (GAAP)	$	(9,113	)	$	(10,413	)	$	(11,654	)	$	(11,182	)	$	(10,059	)
FTE adjustment		40			7			7			8			8

Net interest income adjusted for impact of FTE (Non-GAAP)	$	(9,073	)	$	(10,406	)	$	(11,647	)	$	(11,174	)	$	(10,051	)


Non-Strategic
Net interest income (GAAP)	$	15,984		$	16,820		$	17,140		$	18,884		$	20,353
FTE adjustment		—			—			—			—			—

Net interest income adjusted for impact of FTE (Non-GAAP)	$	15,984		$	16,820		$	17,140		$	18,884		$	20,353


Total Consolidated
Net interest income (GAAP)	$	152,359		$	157,135		$	158,838		$	160,019		$	161,382
FTE adjustment		1,987			2,044			1,894			1,913			1,787

Net interest income adjusted for impact of FTE (Non-GAAP)	$	154,346		$	159,179		$	160,732		$	161,932		$	163,169

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.

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.

Purchase Credit Impaired (“PCI”) Loans: Acquired loans that have experienced deterioration of credit quality between origination and the time of acquisition and for which the timely collection of the interest and principal is no longer reasonably assured.

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.

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 2014 Earnings

April 17, 2014

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

reconciliation

that

non-GAAP

information

comparable

GAAP

information

provided

footnote

the

appendix at the end of this presentation.

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

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

“should”,“is

likely”,“will”,“going

forward”

and

other

expressions

that

indicate

future

events

and

trends

and

may

followed

reference

cautionary

statements.

number

factors

could

cause

actual

results

differ

materially

from those in the forward-looking information.

These factors are outlined in our recent earnings and other press

releases

and

detail

the

most

current

10-Q

and

10-K.

FHN

disclaims

any

obligation

update

any

such

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

or therein to reflect future events or developments.

Building Franchise Value

Executing “Blue Chip”

Priorities

Being easy to do business with

Providing differentiated customer service

Using the bonefish to drive profitability

Building Franchise Value

Efficiency, Productivity, Economic Profitability,

and Growth Opportunities On Track

Rationalizing Expenses

-8%

Organizational alignment on the path to achieving

long-term bonefish profitability

Exceeded the goal of less than $900mm of annualized

expenses

Demonstrated loan growth in CRE, ABL, Mid-Atlantic,

Middle Tennessee, and East Tennessee

Profitable growth opportunities in Specialty Lending,

Middle Tennessee, and Mid-Atlantic markets

Non-Strategic average loans now comprise less than

20% of the total loan portfolio

Non-Strategic Average Loan Run-Off

-18%

Average Regional Banking loans. Growth is from 1Q13 to 1Q14.

Private Client & Wealth Management loans are originated within the geographical markets listed above.

East Tennessee includes loans from the MNB acquisition.

Regional Bank Areas of Loan Growth Since 1Q13

*Specialty Lending Areas

Asset Based Lending*

11%

Mid-Atlantic

Middle TN

East TN

Private Client / Wealth Mgmt

CRE*

12%

Core Businesses Relative Positioning

Core Businesses Continue to Deliver Solid Results

Balance Sheet Positioned to Benefit from Rising Rates

TTM

Returns

Key TTM

Bonefish

Metrics

ROTCE

ROA

Capital ratios remain ~200-300bps

above normalized Bonefish Tier 1

Common capital levels

NIM

NCO %

Fee Income %

Efficiency Ratio

Better than long-term bonefish

targets

FTN Financial significant differentiator

vs peers

In line with long-term bonefish

targets

Regional Banking efficiency ratio of 64%

Core Businesses expenses down $6mm

or 3% linked quarter

Significant latent income embedded in

balance sheet

A 200bps rise in rates would have

improved NII by ~$66mm annually

and added ~38bps to Core NIM

FINANCIAL RESULTS

1Q14 Consolidated Financial Results

NII

Fee Income

Expense

EPS

$ in millions, except EPS

Financial Results

1Q14

$152

Net Income Available to Common Shareholders

Loan Loss Provision

$146

$220

$10

$45

$0.19

1Q14 vs

-$9

-$11

-$20

-$5

+$4

+$0.02

4Q13

$157

$135

$257

$15

$49

$0.21

1Q13

$161

$156

$241

$15

$41

$0.17

4Q13

-$5

+$11

-$37

-$5

-$0.02

1Q13

Actuals

Net income available to common of $45mm, with EPS of $0.19

Net interest margin of 2.88%

Loan loss provision of $10mm with net charge-offs of $17mm

Annualized expenses below $900mm goal

Tier 1 Common of 11.1%

Total average loans at $15B

Total average deposits of $17B

Numbers may not add to total due to rounding.

All non-GAAP numbers are reconciled in the appendix.

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

First Quarter 2014 Significant Items

Impact to EPS

Previously Unrecognized

Servicing Fees Associated

with the MSR Sale

$12.3mm

After-Tax Amount

$0.05

Securities Gain on an

Equity Investment

$3.4mm

$0.01

Significant Item

Pre-Tax Amount

$20.0mm

Lease Abandonment &

Other Restructuring Charges

$(3.5)mm

$(0.01)

$(5.7)mm

Net Impact from

Resolution / Collapse of

On-Balance Sheet

Consumer Securitizations

$(3.9)mm

$(0.02)

$(6.4)mm

$5.6mm

Numbers may not add to total due to rounding.

After-tax impact assumes a statutory tax rate of 38.6%.

EPS impact calculated by dividing the after-tax impact by the 237mm diluted shares outstanding.

1Q14 Segment Highlights

Drivers and Impacts

Net Income

$ in millions,

except EPS

Regional

Banking

Capital

Markets

Corporate

Core

Businesses

Non-

Strategic

Total

4Q13

$43

$(7)

$43

$49

1Q13

$49

$12

$(12)

$50

$(9)

$41

1Q14

$36

$(8)

$33

$12

$45

$0.15

$0.02

$(0.03)

$0.14

$0.05

$0.19

Fixed income ADR of $813k in 1Q14 vs $822k in 4Q13

Linked quarter decrease in expense from lower variable

compensation, partially offset by FICA reset

Includes $20mm gain from unrecognized servicing fees in 1Q14

Loan loss provision credit of $(3)mm in 1Q14 vs $12mm in 4Q13

Zero mortgage repurchase provision in 1Q14; 4Q13 included a

$30mm repurchase reserve reversal and $57mm of net loss

accruals related to legal matters

Pre-provision

net

revenue³

relatively

flat

linked

quarter

expense reductions offset revenue declines

1Q14 provision was affected by further refinement to the credit

card reserving process as well as macroeconomic factors

Fee income up $5mm linked quarter, including a $5.6mm

investment gain in 1Q14

Expense includes a ~$5mm lease abandonment charge

4Q13

tax

expense

was

favorably

affected

the

pattern

quarterly earnings in 2013 and $7.5mm in discrete items

1Q14

Per Share

Impact

Regional Banking Financial Results

NII

Fee Income

Expense

$ in millions

Financial Results

1Q14

$142

Net Income

Loan Loss Provision

$60

$133

$13

$36

1Q14 vs

-$5

+$1

+$2

+$15

-$13

4Q13

$146

$63

$139

$43

1Q13

$147

$59

$131

-$2

$49

4Q13

-$4

-$3

-$6

+$10

-$7

1Q13

Actuals

Average core deposits grew 3% linked quarter

Average

loans

relatively

steady

linked

quarter,

despite

loans

mortgage

companies

declining

24%

Solid loan growth in CRE, ABL, Mid-Atlantic, Middle Tennessee, and East Tennessee

Pre-provision

net

revenue

relatively

flat

linked

quarter

expense

reduction

offsets

revenue

declines

Fee income linked quarter decline driven by seasonally lower deposit transaction fees, somewhat offset by an

increase in brokerage and trust fees

Expenses in 4Q13 included charges associated with branch closings and higher professional fees

1Q14 provision was affected by further refinement to the credit card reserving process as well as

macroeconomic factors

Numbers may not add to total due to rounding.

Regional Banking pre-provision net revenue is non-GAAP and reconciled in the appendix.

Profitable Growth Opportunities: Regional Banking

Broad Product Offerings with Focus on

Specialty Lending Provide Growth Opportunities

Regional Banking Average Loans by Lending Area

Linked quarter highlights:

ABL grew 6%

Middle Tennessee market grew 1%

CRE loans up 3%

Private Client / Wealth Management loans up 1%

Regional

Bank

Areas

Loan

Growth

Since

1Q13

*Specialty Lending Areas

Asset Based Lending*

11%

Mid-Atlantic

Middle TN

East TN

Private

Client

Wealth

Mgmt

CRE*

12%

$4.9

$4.1

$2.9

$0.6

$0.8

$1.6

$1.7

$2.1

$3.6

$1.2

1Q13

1Q14

$10

Commercial

Private Client / Wealth Management

Business Banking

Retail

Specialty Lending (includes:

Loans to Mortgage Companies)

$12B

Capital Markets

Capital Markets Provides a Unique Business Model

with Solid Returns and A Broad Customer Base

Fixed Income Average Daily Revenue

Fixed income average daily revenue at $813k in 1Q14

Expense decline associated with lower variable

compensation, partially offset by seasonal payroll taxes

Focused on investing in extensive fixed income

distribution platform:

Strategic hiring of sales and trading resources

Expansion of municipal products platform, including

development of public finance capability

Lower levels of fixed income ADR due to market

conditions

NII

Fee Income

Expense

$ in millions, except ADR

Financial Results

1Q14

Average Daily Revenue (ADR)

Net Income

$57

$53

$813k

1Q14 vs

-$0

-$20

-$9

-$7

-$320k

4Q13

$60

$53

$822k

1Q13

$77

$62

$12

$1,133k

4Q13

-$1

-$3

-$1

-$2

-$9k

1Q13

Actuals

Numbers may not add to total due to rounding.

Normalized ADR range

of $1.0-1.5mm

NIM linked quarter decline due to lower loan balances,

continued pressure on commercial loan yields, higher

Fed balances, and a decrease in NII related to lower

day count

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

in 2014

Key assumptions:

Rates stay at current levels

Continued modest loan yield declines

Earning assets relatively stable

Regional Banking average deposit rate paid of 20bps in

1Q14 vs 29bps in 1Q13

Attractive and stable low-cost funding mix in Regional

Banking with 54% DDA and interest checking deposits

Selectively pursuing fixed-rate lending in relationship-

oriented opportunities

Floating rate loans comprise 64% vs

fixed rate loans at 36%

Net Interest Income Sensitivity Impact

NII and Net Interest Margin

Balance Sheet Positioned to Benefit from Rising Rates

Net Interest Margin

3.09%

2.95%

2.96%

2.97%

2.98%

2.88%

2.6%

2.7%

2.8%

2.9%

3.0%

3.1%

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

-1.4%

-$8mm

+1.2%

+$7mm

+5.5%

+$34mm

+10.8%

+$66mm

-3%

12%

Long End

-50bps

Long End

+50bps

+100bps

+200bps

NIM could fluctuate based on excess cash Fed

balances, Capital Markets inventory, and balances in

loans to mortgage companies

Annualized Noninterest Expense

Continued Efficiencies

Execution Capabilities Demonstrated

Performance vs Peers Meaningfully Differentiated

Annualized

noninterest

expense

declined

30%

from

1Q11

reflecting

broad-based

improvement

most

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