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

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8-K - 8-K - FIRST HORIZON CORP	d804264d8k.htm

Exhibit 99.1

LOGO

THIRD 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 and pre-tax pre-provision net revenue (“PPNR”). 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 Third Quarter 2014 Notable Items
Segment	Item	Income Statement	Amount	Comments

• Non-Strategic	Gain on sales of held-for-sale loans	Mortgage banking	$39.7 million	Pre-tax gain on the sales of held-for-sale (“HFS”) mortgage loans

• Non-Strategic	Litigation expense	Litigation and regulatory matters	$(50.0) million	Pre-tax loss accruals related to legal matters

	Insurance proceeds	Litigation and regulatory matters	$15.0 million	Pre-tax recoveries related to agreements reached with insurance companies for expenses FHN previously incurred associated with litigation

			$(35.0) million	Net pre-tax loss accrual related to legal matters

Third Quarter 2014 vs. Second Quarter 2014

Consolidated

•

Net income available to common shareholders was $45.3 million, or $.19 per diluted share in third quarter, compared to $76.8 million, or $.32 per diluted share in prior quarter

•

Net interest income (“NII”) increased to $159.5 million in third quarter from $156.8 million in second quarter; Net interest margin (“NIM”) was flat at 2.97 percent

•

The increase in NII was affected by a number of factors including improved deposit pricing, one more day in third quarter compared to second quarter, and higher loan balances

•

Noninterest income (including securities gains) increased $30.9 million to $157.8 million in third quarter

•

The increase in noninterest income was largely the result of gains associated with the sales of HFS mortgage loans in third quarter

•

Noninterest expense was $246.2 million in third quarter compared to $165.3 million in second quarter primarily due to an increase in litigation loss accruals, partially offset by an expense reversal related to agreements with insurance companies for the recovery of prior litigation losses

•

Second quarter includes a $47.1 million expense reversal related to a recovery associated with the 2011 settlement of the Sentinel litigation matter and related legal expenses

•

Average loans grew to $15.8 billion in third quarter from $15.4 billion in second quarter; period-end loans were $15.8 billion in third and second quarters

Regional Banking

•

Pre-tax income increased to $79.6 million in third quarter from $72.9 million in second quarter; PPNR was $81.8 million and $81.3 million in third and second quarters, respectively

•

Average loans increased 4 percent, or $513.1 million to $12.9 billion in third quarter primarily driven by higher balances of loans to mortgage companies and other commercial loans; period-end loans increased 1 percent to $13.0 billion

•

Average core deposits were $14.6 billion in third quarter compared to $14.8 billion in second quarter; period-end core deposits decreased 2 percent to $14.7 billion

•

NII improved to $153.9 million in third quarter from $148.7 million in second quarter

•

The increase in NII is primarily attributable to lower deposit rates, higher average balances of loans to mortgage companies, and the impact of day variance relative to second quarter

•

Provision for loan losses dropped to $2.2 million in third quarter from $8.4 million in second quarter

•

Provision levels reflect continued favorable trends in the commercial portfolio including favorable grade migration, lower delinquencies, and historically low net charge-off levels; consumer asset quality trends remain relatively stable

•

Noninterest income was $64.2 million in third quarter compared to $66.2 million in second quarter

•

Second quarter includes $2.8 million of Visa volume incentives

•

Noninterest expense was $136.3 million in third quarter compared to $133.6 million in second quarter

Capital Markets

•

Fixed income revenue increased to $41.2 million in third quarter from $40.5 million in second quarter

•

Fixed income average daily revenue (“ADR”) was $644 thousand and $642 thousand in third and second quarters, respectively

•

Noninterest expense was $47.9 million in third quarter compared to $.1 million in the prior quarter

•

Second quarter included a $47.1 million expense reversal recognized as a result of agreements with insurance companies for the recovery of expenses incurred in the Sentinel litigation matter which was settled in 2011

Corporate

•

NII was negative $12.5 million in third quarter compared to negative $10.5 million in the prior quarter

•

Estimated effective duration of the securities portfolio was 3.4 years in third quarter compared to 3.3 years in second quarter

•

Estimated modified duration of the securities portfolio was 3.9 years in third and second quarters

•

Noninterest income was $4.1 million in third quarter compared to $5.2 million in second quarter

•

Decrease primarily relates to lower deferred compensation driven by market conditions; changes in deferred compensation income are mirrored by changes in deferred compensation expense

•

Noninterest expense was $18.8 million in third quarter compared to $15.8 million in the prior quarter

•

Increase primarily related to a $3.2 million negative valuation adjustment associated with derivatives related to prior sales of Visa Class B shares

FHN PERFORMANCE HIGHLIGHTS (continued)

Third Quarter 2014 vs. Second Quarter 2014

Non-Strategic

•

Pre-tax income was $7.8 million in third quarter compared to $11.5 million in second quarter

•

The provision for loan losses was $3.8 million in third quarter compared to a provision credit of $3.4 million in second quarter

•

The third quarter provision reflects an increase in allowance associated with an Insurance TRUP that elected interest deferral and an uptick in consumer delinquencies

•

Noninterest income increased to $39.6 million in third quarter from $7.9 million in the prior quarter

•

Increase primarily driven by the gain on the sales of mortgage loans HFS in third quarter

•

Noninterest expense was $43.2 million in third quarter compared to $15.9 million in second quarter

•

Third quarter increase was driven primarily by a net increase in litigation loss accruals related to legal matters

•

This increase was partially offset by a $4.3 million reversal of repurchase and foreclosure provision as a result of a settlement of certain repurchase claims and a decline in legal fees

Asset Quality

•

Allowance for loan losses declined to $238.6 million in third quarter from $243.6 million in second quarter; the allowance to loans ratio was 151 basis points in third quarter compared to 154 basis points in second quarter

•

The decline in the allowance was driven by a $5.9 million consumer reserve release; the allowance associated with the C&I portfolio increased as a result of an insurance TRUP loan that moved to interest deferral during third quarter

•

Net charge-offs (“NCOs”) were $11.0 million in third quarter compared to $8.6 million in prior quarter; annualized net charge-offs increased to 28 basis points of average loans in third quarter from 22 basis points in prior quarter

•

Net charge-offs within the consumer real estate portfolio increased $5.3 million from prior quarter which more than offset a $2.9 million decline in commercial net charge-offs

•

Commercial net charge-offs were $0 for third quarter

•

Nonperforming loans (“NPLs”) in the portfolio declined to $213.7 million from $231.6 million in second quarter

•

Both commercial and consumer NPLs declined from last quarter; commercial due to return to accrual and consumer due to decline in nonaccruing junior liens

•

Nonperforming C&I loans within the non-strategic segment increased by $9.4 million as a result of an insurance TRUP electing interest deferral in third quarter

•

Nonperforming assets (“NPAs”), including loans held-for-sale, decreased to $256.9 million in third quarter from $339.6 million in prior quarter

•

$61.3 million of the decline was related to the sale of mortgage loans held-for-sale

•

Total 30+ delinquencies improved to $86.3 million in third quarter compared to $92.8 million in prior quarter

•

Commercial delinquencies declined by $16.8 million as a result of payoffs and loans that returned to accrual status in third quarter

•

Consumer delinquencies increased by $10.3 million driven by higher delinquencies within the non-strategic consumer real estate and permanent mortgage portfolios

•

Troubled debt restructurings (“TDRs”) declined to $429.1 million in third quarter from $490.4 million in prior quarter

•

The decline was mainly due to the sale of mortgage loans held-for-sale

Taxes

•

The effective tax rate for third quarter and second quarter were 23.66 percent and 28.37 percent, respectively, and reflect 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 October 1, 2014

•

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

•

Repurchased shares costing $24.0 million in third quarter under the $100 million share repurchase program announced in January 2014

•

Cumulative shares repurchased since the program’s inception are $24.0 million with a volume weighted average price of $12.02 per share (before $.02 per share broker commission)

•

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

•

8.69 percent for tangible common equity to tangible assets

•

14.37 percent for Tier 1

•

16.12 percent for Total Capital

•

11.31 percent for Tier 1 Common

•

11.71 percent for Leverage

FHN CONSOLIDATED INCOME STATEMENT

Quarterly, Unaudited


																3Q14 Changes vs.
(Dollars in thousands, except per share data)	3Q14			2Q14			1Q14			4Q13			3Q13			2Q14			3Q13
Interest income	$	178,858		$	177,359		$	173,584		$	179,053		$	182,610			1	%		(2	)%
Less: interest expense		19,317			20,591			21,225			21,918			23,772			(6	)%		(19	)%

Net interest income		159,541			156,768			152,359			157,135			158,838			2	%		*
Provision for loan losses		6,000			5,000			10,000			15,000			10,000			20	%		(40	)%

Net interest income after provision for loan losses		153,541			151,768			142,359			142,135			148,838			1	%		3	%

Noninterest income:
Capital markets		47,589			47,680			56,840			59,653			64,283			*			(26	)%
Deposit transactions and cash management		28,546			27,911			26,456			29,194			29,279			2	%		(3	)%
Brokerage, management fees and commissions		12,333			12,843			12,276			11,505			10,868			(4	)%		13	%
Mortgage banking (a)		41,559			8,861			19,029			3,853			14,460			NM			NM
Trust services and investment management		6,779			7,309			6,744			6,596			6,649			(7	)%		2	%
Bankcard income (b)		5,521			7,919			4,520			4,998			5,303			(30	)%		4	%
Bank-owned life insurance (c)		3,547			3,312			6,032			3,636			3,560			7	%		*
Other service charges		3,064			3,143			2,845			3,144			3,707			(3	)%		(17	)%
Insurance commissions		593			611			437			960			733			(3	)%		(19	)%
Securities gains/(losses), net (d)		(862	)		(1,923	)		5,657			2,183			(96	)		55	%		NM
Gain/(loss) on divestitures		—			—			—			(4	)		115			NM			NM
Other (e)		9,146			9,235			4,894			9,325			11,614			(1	)%		(21	)%

Total noninterest income		157,815			126,901			145,730			135,043			150,475			24	%		5	%

Adjusted gross income after provision for loan losses		311,356			278,669			288,089			277,178			299,313			12	%		4	%

Noninterest expense:
Employee compensation, incentives, and benefits		120,742			119,659			119,229			127,144			132,213			1	%		(9	)%
Repurchase and foreclosure provision (f)		(4,300	)		—			—			(30,000	)		200,000			NM			NM
Legal and professional fees (g)		10,463			6,151			15,039			15,419			12,704			70	%		(18	)%
Occupancy (h)		12,405			11,944			17,592			12,811			13,147			4	%		(6	)%
Computer software		10,614			11,087			10,656			10,197			10,446			(4	)%		2	%
Contract employment and outsourcing (i)		5,199			5,318			4,325			9,059			9,241			(2	)%		(44	)%
Operations services		9,044			8,804			8,982			9,104			9,199			3	%		(2	)%
Equipment rentals, depreciation, and maintenance		7,150			7,442			7,849			8,431			7,890			(4	)%		(9	)%
FDIC premium expense (j)		3,456			1,136			3,991			4,477			4,631			NM			(25	)%
Advertising and public relations		4,386			4,312			5,908			4,685			5,486			2	%		(20	)%
Communications and courier		3,628			3,948			4,224			4,473			4,517			(8	)%		(20	)%
Foreclosed real estate		788			439			784			1,050			523			79	%		51	%
Amortization of intangible assets		982			981			982			1,128			928			*			6	%
Other (e)		61,629			(15,889	)		20,653			79,119			22,631			NM			NM

Total noninterest expense		246,186			165,332			220,214			257,097			433,556			49	%		(43	)%

Income/(loss) before income taxes		65,170			113,337			67,875			20,081			(134,243	)		(42	)%		NM
Provision/(benefit) for income taxes		15,421			32,157			18,645			(33,813	)		(31,094	)		(52	)%		NM

Income/(loss) from continuing operations		49,749			81,180			49,230			53,894			(103,149	)		(39	)%		NM
Income/(loss) from discontinued operations, net of tax		—			—			—			(6	)		123			NM			NM

Net income/(loss)		49,749			81,180			49,230			53,888			(103,026	)		(39	)%		NM
Net income attributable to noncontrolling interest		2,875			2,859			2,813			2,934			2,875			1	%		*

Net income/(loss) attributable to controlling interest		46,874			78,321			46,417			50,954			(105,901	)		(40	)%		NM
Preferred stock dividends		1,550			1,550			1,550			1,550			1,550			*			*

Net income/(loss) available to common shareholders	$	45,324		$	76,771		$	44,867		$	49,404		$	(107,451	)		(41	)%		NM

Common Stock Data
Diluted EPS	$	0.19		$	0.32		$	0.19		$	0.21		$	(0.45	)		(41	)%		NM
Diluted shares (thousands)		236,862			237,250			237,401			236,753			236,895			*			*

Key Ratios & Other
Return on average assets (annualized) (k)		0.83	%		1.38	%		0.83	%		0.90	%		(1.69	)%
Return on average common equity (annualized) (k)		7.99	%		14.14	%		8.48	%		9.42	%		(20.39	)%
Fee income to total revenue (k)		49.86	%		45.11	%		47.90	%		45.81	%		48.66	%
Efficiency ratio (k)		77.36	%		57.89	%		75.30	%		88.66	%		NM
Full time equivalent employees		4,193			4,216			4,251			4,309			4,338

NM - Not meaningful

*	Amount is less than one percent.

(a)

3Q14 includes a $39.7 million gain on the sales of mortgage loans HFS; 2Q14 includes an $8.2 million positive fair value adjustment to the held-for-sale portfolio; 1Q14 increase reflects the receipt of previously unrecognized servicing fees in conjunction with transfers of servicing in 1Q14; 4Q13 decline due to transfers of servicing.

(b)	2Q14 includes $2.8 million of Visa volume incentives.

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

(d)	3Q14 includes a $1.0 million loss on the sale of an investment; 2Q14 includes a $2.0 million negative fair value adjustment of an investment.

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

(f)	3Q14 expense reversal associated with the settlement of certain repurchase claims.

(g)	2Q14 includes an $8.5 million expense reversal related to agreements with insurance companies for the recovery of Sentinel legal expenses.

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

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

(j)	2Q14 includes the effect of $3.3 million of FDIC premium refunds.

(k)	See Glossary of Terms for definitions of Key Ratios.

FHN OTHER INCOME AND OTHER EXPENSE

Quarterly, Unaudited


														3Q14 Changes vs.
(Thousands)	3Q14			2Q14			1Q14			4Q13		3Q13		2Q14			3Q13
Other Income
ATM and interchange fees	$	2,739		$	2,746		$	2,497		$	2,721	$	2,680		*			2	%
Electronic banking fees		1,560			1,535			1,534			1,535		1,607		2	%		(3	)%
Letter of credit fees		917			1,173			1,663			1,215		1,171		(22	)%		(22	)%
Deferred compensation (a)		(41	)		1,184			657			1,210		2,160		NM			NM
Gain /(loss) on extinguishment of debt (b)		—			—			(4,350	)		—		—		NM			NM
Other		3,971			2,597			2,893			2,644		3,996		53	%		(1	)%

Total	$	9,146		$	9,235		$	4,894		$	9,325	$	11,614		(1	)%		(21	)%

Other Expense
Litigation and regulatory matters (c)	$	35,390		$	(38,200	)	$	90		$	57,355	$	229		NM			NM
Other insurance and taxes		3,909			3,209			3,060			3,261		3,215		22	%		22	%
Tax credit investments		2,481			3,032			2,495			3,063		3,079		(18	)%		(19	)%
Travel and entertainment		2,164			2,645			1,824			2,339		2,400		(18	)%		(10	)%
Employee training and dues		1,194			1,200			866			1,327		1,244		(1	)%		(4	)%
Customer relations		1,406			1,680			1,243			1,179		1,204		(16	)%		17	%
Miscellaneous loan costs		597			839			714			701		1,349		(29	)%		(56	)%
Supplies		779			804			1,116			1,090		950		(3	)%		(18	)%
Other (d)		13,709			8,902			9,245			8,804		8,961		54	%		53	%

Total	$	61,629			(15,889	)	$	20,653		$	79,119	$	22,631		NM			NM

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 loss associated with the collapse of two HELOC securitization trusts.

(c)

3Q14 includes $50.0 million of loss accruals related to legal matters, partially offset by $15.0 million of expense reversals associated with agreements with insurance companies for the recovery of expenses FHN incurred related to litigation losses in previous periods; 2Q14 includes $38.6 million related to the recovery of expenses related to the Sentinel litigation matter which was settled in 2011; 4Q13 includes $57.0 million of net loss accruals related to legal matters.

(d)	3Q14 and 1Q14 include $3.2 million and $2.3 million, respectively, of negative valuation adjustments associated with derivatives related to prior sales of Visa Class B shares.

FHN CONSOLIDATED PERIOD-END BALANCE SHEET

Quarterly, Unaudited


																3Q14 Changes vs.
(Thousands)	3Q14			2Q14			1Q14			4Q13			3Q13			2Q14			3Q13
Assets:
Investment securities	$	3,538,957		$	3,580,821		$	3,575,453		$	3,398,457		$	3,186,943			(1	)%		11	%
Loans held-for-sale (a)		151,915			358,945			361,359			370,152			371,640			(58	)%		(59	)%
Loans, net of unearned income (Restricted - $.1 billion) (b)		15,812,017			15,795,709			15,119,461			15,389,074			15,408,556			*			3	%
Federal funds sold		55,242			51,537			16,555			66,079			52,830			7	%		5	%
Securities purchased under agreements to resell		561,802			624,477			605,276			412,614			576,355			(10	)%		(3	)%
Interest-bearing cash (c)		275,485			255,920			685,540			730,297			184,179			8	%		50	%
Trading securities		1,338,022			1,150,280			1,194,749			801,718			1,343,134			16	%		*

Total earning assets		21,733,440			21,817,689			21,558,393			21,168,391			21,123,637			*			3	%

Cash and due from banks (Restricted - $.3 million) (b)		292,687			417,108			450,270			349,216			395,631			(30	)%		(26	)%
Capital markets receivables (d)		197,507			174,224			51,082			45,255			83,154			13	%		NM
Mortgage servicing rights, net (e)		2,880			3,197			4,687			72,793			116,686			(10	)%		(98	)%
Goodwill		141,943			141,943			141,943			141,943			140,479			*			1	%
Other intangible assets, net		19,044			20,025			21,007			21,988			22,216			(5	)%		(14	)%
Premises and equipment, net		295,833			300,533			299,183			305,244			308,779			(2	)%		(4	)%
Real estate acquired by foreclosure (f)		47,996			57,552			66,035			71,562			71,626			(17	)%		(33	)%
Allowance for loan losses (Restricted - $.8 million) (b)		(238,641	)		(243,628	)		(247,246	)		(253,809	)		(255,710	)		(2	)%		(7	)%
Derivative assets		137,742			162,067			166,465			181,866			215,116			(15	)%		(36	)%
Other assets (Restricted - $.4 million) (b)		1,356,356			1,372,040			1,430,170			1,685,384			1,637,139			(1	)%		(17	)%

Total assets (Restricted - $.1 billion) (b)	$	23,986,787		$	24,222,750		$	23,941,989		$	23,789,833		$	23,858,753			(1	)%		1	%

Liabilities and Equity:
Deposits:
Savings	$	6,371,156		$	6,317,197		$	6,630,142		$	6,732,326		$	6,781,522			1	%		(6	)%
Other interest-bearing deposits		3,955,152			4,014,071			4,071,699			3,859,079			3,494,236			(1	)%		13	%
Time deposits		767,699			808,822			898,223			951,755			997,726			(5	)%		(23	)%

Total interest-bearing core deposits		11,094,007			11,140,090			11,600,064			11,543,160			11,273,484			*			(2	)%
Noninterest-bearing deposits		4,603,826			4,513,800			4,534,245			4,637,839			4,434,746			2	%		4	%

Total core deposits (g)		15,697,833			15,653,890			16,134,309			16,180,999			15,708,230			*			*

Certificates of deposit $100,000 and more		446,938			503,597			538,434			553,957			575,679			(11	)%		(22	)%

Total deposits		16,144,771			16,157,487			16,672,743			16,734,956			16,283,909			*			(1	)%

Federal funds purchased		928,159			947,946			1,135,665			1,042,633			1,062,901			(2	)%		(13	)%
Securities sold under agreements to repurchase		479,384			475,530			411,795			442,789			427,232			1	%		12	%
Trading liabilities		532,234			706,119			667,257			368,348			585,969			(25	)%		(9	)%
Other short-term borrowings (h)		790,080			1,073,250			204,023			181,146			303,686			(26	)%		NM
Term borrowings (Restricted - $.1 billion) (b) (i)		1,491,138			1,501,209			1,507,048			1,739,859			1,771,288			(1	)%		(16	)%
Capital markets payables (d)		329,960			95,299			39,510			21,173			53,784			NM			NM
Derivative liabilities		123,442			138,336			137,863			154,280			165,918			(11	)%		(26	)%
Other liabilities		545,678			501,423			621,948			603,898			770,773			9	%		(29	)%

Total liabilities (Restricted - $.1 billion) (b)		21,364,846			21,596,599			21,397,852			21,289,082			21,425,460			(1	)%		*

Equity:
Common stock		147,030			148,217			147,866			147,731			147,705			(1	)%		*
Capital surplus (j)		1,390,081			1,416,012			1,417,170			1,416,767			1,413,248			(2	)%		(2	)%
Undivided profits		826,610			792,978			728,165			695,207			657,676			4	%		26	%
Accumulated other comprehensive loss, net		(132,835	)		(122,111	)		(140,119	)		(150,009	)		(176,391	)		9	%		(25	)%
Preferred stock		95,624			95,624			95,624			95,624			95,624			*			*
Noncontrolling interest (k)		295,431			295,431			295,431			295,431			295,431			*			*

Total equity		2,621,941			2,626,151			2,544,137			2,500,751			2,433,293			*			8	%

Total liabilities and equity ( Restricted - $.1 billion) (b)	$	23,986,787		$	24,222,750		$	23,941,989		$	23,789,833		$	23,858,753			(1	)%		1	%

NM - Not meaningful

*	Amount is less than one percent.

(a)	3Q14 decrease related to the sale of mortgage loans HFS.

(b)	Restricted balances parenthetically presented are as of September 30, 2014.

(c)	Includes excess balances held at Fed.

(d)	Period-end balances fluctuate based on the level of pending unsettled trades.

(e)	Decreases beginning in 4Q13 reflect transfers associated with an agreement to sell mortgage servicing rights entered into in 3Q13.

(f)	3Q14 includes $12.7 million of foreclosed assets related to government insured mortgages.

(g)	3Q14 average core deposits were $15.4 billion.

(h)	3Q14 and 2Q14 include increased FHLB borrowings as a result of loan growth and deposit fluctuations.

(i)	In 1Q14 FHN resolved the collateralized borrowings for three previously on-balance sheet consumer loan securitizations.

(j)	3Q14 decrease relates to shares purchased under the share repurchase program.

(k)	Consists of preferred stock of subsidiaries.

FHN CONSOLIDATED AVERAGE BALANCE SHEET

Quarterly, Unaudited


																3Q14 Changes vs.
(Thousands)	3Q14			2Q14			1Q14			4Q13			3Q13			2Q14			3Q13
Assets:
Earning assets:
Loans, net of unearned income:
Commercial, financial, and industrial (C&I)	$	8,395,553		$	7,994,788		$	7,639,584		$	7,694,029		$	7,888,297			5	%		6	%
Commercial real estate		1,260,715			1,203,631			1,139,749			1,164,748			1,215,586			5	%		4	%
Consumer real estate		5,173,088			5,230,107			5,305,596			5,400,751			5,502,825			(1	)%		(6	)%
Permanent mortgage		581,876			607,296			637,642			678,938			721,554			(4	)%		(19	)%
Credit card and other		352,133			345,748			336,454			334,887			323,551			2	%		9	%

Total loans, net of unearned income (Restricted - $.1 billion) (a) (b)		15,763,365			15,381,570			15,059,025			15,273,353			15,651,813			2	%		1	%

Loans held-for-sale		318,743			355,822			367,899			368,373			378,263			(10	)%		(16	)%
Investment securities:
U.S. treasuries		26,764			39,995			41,828			39,994			41,303			(33	)%		(35	)%
U.S. government agencies		3,345,739			3,330,598			3,222,642			2,959,355			2,900,838			*			15	%
States and municipalities		17,458			19,430			19,425			15,155			15,246			(10	)%		15	%
Other		184,934			189,449			211,891			229,728			224,213			(2	)%		(18	)%

Total investment securities		3,574,895			3,579,472			3,495,786			3,244,232			3,181,600			*			12	%

Trading securities		1,060,123			1,118,425			1,108,747			1,172,282			1,171,820			(5	)%		(10	)%
Other earning assets:
Federal funds sold		37,274			29,490			21,615			19,471			28,498			26	%		31	%
Securities purchased under agreements to resell		644,022			664,194			622,466			581,798			593,978			(3	)%		8	%
Interest-bearing cash (c)		288,192			363,674			972,537			614,628			537,631			(21	)%		(46	)%

Total other earning assets		969,488			1,057,358			1,616,618			1,215,897			1,160,107			(8	)%		(16	)%

Total earning assets (Restricted - $.1 billion) (a)		21,686,614			21,492,647			21,648,075			21,274,137			21,543,603			1	%		1	%

Allowance for loan losses (Restricted - $.8 million) (a)		(240,433	)		(246,779	)		(249,733	)		(250,074	)		(256,789	)		(3	)%		(6	)%
Cash and due from banks (Restricted - $.6 million) (a)		321,427			308,890			336,543			341,066			351,972			4	%		(9	)%
Capital markets receivables		55,937			46,864			54,654			45,179			82,289			19	%		(32	)%
Premises and equipment, net		297,636			299,899			301,065			307,285			308,199			(1	)%		(3	)%
Derivative assets		154,988			165,684			181,586			201,609			209,878			(6	)%		(26	)%
Other assets (Restricted - $.4 million) (a)		1,528,788			1,584,747			1,643,879			1,926,109			1,942,481			(4	)%		(21	)%

Total assets (Restricted - $.1 billion) (a)	$	23,804,957		$	23,651,952		$	23,916,069		$	23,845,311		$	24,181,633			1	%		(2	)%

Liabilities and equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Savings	$	6,327,556		$	6,427,265		$	6,683,749		$	6,642,159		$	6,957,875			(2	)%		(9	)%
Other interest-bearing deposits		3,697,854			3,779,293			3,830,839			3,520,348			3,494,211			(2	)%		6	%
Time deposits		785,154			859,551			924,025			977,107			1,025,788			(9	)%		(23	)%

Total interest-bearing core deposits		10,810,564			11,066,109			11,438,613			11,139,614			11,477,874			(2	)%		(6	)%
Certificates of deposit $100,000 and more		464,792			512,527			545,845			580,760			594,536			(9	)%		(22	)%
Federal funds purchased		1,028,852			1,080,347			1,161,594			1,236,763			1,119,273			(5	)%		(8	)%
Securities sold under agreements to repurchase		406,219			458,608			454,937			446,894			452,940			(11	)%		(10	)%
Capital markets trading liabilities		621,880			671,930			607,114			567,531			598,195			(7	)%		4	%
Other short-term borrowings (d)		1,093,014			540,389			184,721			219,593			243,195			NM			NM
Term borrowings (Restricted - $.1 billion) (a) (e)		1,499,959			1,505,860			1,702,107			1,764,476			1,792,250			*			(16	)%

Total interest-bearing liabilities		15,925,280			15,835,770			16,094,931			15,955,631			16,278,263			1	%		(2	)%

Noninterest-bearing deposits		4,602,292			4,547,838			4,536,080			4,559,023			4,542,127			1	%		1	%
Capital markets payables		36,762			34,293			33,144			32,896			57,275			7	%		(36	)%
Derivative liabilities		130,997			138,282			152,596			159,575			161,611			(5	)%		(19	)%
Other liabilities		467,406			526,581			563,045			666,312			660,458			(11	)%		(29	)%

Total liabilities (Restricted - $.1 billion) (a)		21,162,737			21,082,764			21,379,796			21,373,437			21,699,734			*			(2	)%

Equity:
Common stock		147,820			148,085			147,751			147,724			149,000			*			(1	)%
Capital surplus (f)		1,408,682			1,416,811			1,417,642			1,414,810			1,418,259			(1	)%		(1	)%
Undivided profits		820,543			744,221			714,988			691,958			715,451			10	%		15	%
Accumulated other comprehensive loss, net		(125,880	)		(130,984	)		(135,163	)		(173,673	)		(191,866	)		(4	)%		(34	)%
Preferred stock		95,624			95,624			95,624			95,624			95,624			*			*
Noncontrolling interest		295,431			295,431			295,431			295,431			295,431			*			*

Total equity		2,642,220			2,569,188			2,536,273			2,471,874			2,481,899			3	%		6	%

Total liabilities and equity ( Restricted - $.1 billion) (a)	$	23,804,957		$	23,651,952		$	23,916,069		$	23,845,311		$	24,181,633			1	%		(2	)%

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 for third quarter 2014.

(b)	Includes loans on nonaccrual status.

(c)	Includes excess balances held at Fed.

(d)	3Q14 and 2Q14 include increased FHLB borrowings as a result of loan growth and deposit fluctuations.

(e)	In 1Q14 FHN resolved the collateralized borrowings for three previously on-balance sheet consumer loan securitizations.

(f)	3Q14 decrease relates to shares repurchased under the share repurchase program.

FHN CONSOLIDATED NET INTEREST INCOME (a)

Quarterly, Unaudited


																3Q14 Changes vs.
(Thousands)	3Q14			2Q14			1Q14			4Q13			3Q13			2Q14			3Q13
Interest Income:
Loans, net of unearned income (b)	$	146,931		$	144,975		$	140,487		$	147,322		$	151,504			1	%		(3	)%
Loans held-for-sale		3,263			3,209			3,215			3,253			3,058			2	%		7	%
Investment securities:
U.S. treasuries		5			7			5			4			10			(29	)%		(50	)%
U.S. government agencies		21,376			21,530			20,837			19,020			18,537			(1	)%		15	%
States and municipalities		109			97			117			21			21			12	%		NM
Other		1,866			2,103			2,281			2,307			2,355			(11	)%		(21	)%

Total investment securities		23,356			23,737			23,240			21,352			20,923			(2	)%		12	%

Trading securities		7,944			7,839			8,222			8,878			8,828			1	%		(10	)%
Other earning assets:
Federal funds sold		92			73			53			48			73			26	%		26	%
Securities purchased under agreements to resell (c)		(363	)		(218	)		(192	)		(99	)		(171	)		(67	)%		NM
Interest-bearing cash		134			182			546			343			289			(26	)%		(54	)%

Total other earning assets		(137	)		37			407			292			191			NM			NM

Interest income	$	181,357		$	179,797		$	175,571		$	181,097		$	184,504			1	%		(2	)%

Interest Expense:
Interest-bearing deposits:
Savings	$	2,600		$	2,792		$	3,083		$	3,205		$	3,471			(7	)%		(25	)%
Other interest-bearing deposits		754			746			818			772			817			1	%		(8	)%
Time deposits		1,786			2,486			3,062			3,585			4,013			(28	)%		(55	)%

Total interest-bearing core deposits		5,140			6,024			6,963			7,562			8,301			(15	)%		(38	)%
Certificates of deposit $100,000 and more (d)		685			869			1,023			873			1,658			(21	)%		(59	)%
Federal funds purchased		654			683			726			791			716			(4	)%		(9	)%
Securities sold under agreements to repurchase		63			109			118			126			148			(42	)%		(57	)%
Capital markets trading liabilities		3,782			4,087			3,571			3,442			3,632			(7	)%		4	%
Other short-term borrowings		548			403			261			222			239			36	%		NM
Term borrowings		8,445			8,416			8,563			8,902			9,078			*			(7	)%

Interest expense		19,317			20,591			21,225			21,918			23,772			(6	)%		(19	)%

Net interest income - tax equivalent basis		162,040			159,206			154,346			159,179			160,732			2	%		1	%
Fully taxable equivalent adjustment		(2,499	)		(2,438	)		(1,987	)		(2,044	)		(1,894	)		3	%		32	%

Net interest income	$	159,541		$	156,768		$	152,359		$	157,135		$	158,838			2	%		*

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

NM - Not meaningful

*	Amount is less than one percent.

(a)	Net interest income adjusted to a fully taxable equivalent (“FTE”) basis assuming a statutory federal income tax of 35 percent and, where applicable, state income taxes.

(b)	Includes interest on loans in nonaccrual status.

(c)	Driven by negative market rates on reverse repurchase agreements.

(d)	Beginning in 4Q13, includes 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


	3Q14			2Q14			1Q14			4Q13			3Q13
Assets:
Earning assets (a):
Loans, net of unearned income:
Commercial loans		3.51	%		3.59	%		3.60	%		3.66	%		3.69	%
Retail loans		4.01			4.06			4.01			4.07			4.06

Total loans, net of unearned income (b)		3.70			3.78			3.77			3.83			3.85

Loans held-for-sale		4.09			3.61			3.50			3.53			3.23
Investment securities:
U.S. treasuries		0.07			0.07			0.05			0.04			0.09
U.S. government agencies		2.56			2.59			2.59			2.57			2.56
States and municipalities (c)		2.50			1.99			2.41			0.56			0.55
Other		4.04			4.44			4.31			4.02			4.20

Total investment securities		2.61			2.65			2.66			2.63			2.63

Trading securities		3.00			2.80			2.97			3.03			3.01
Other earning assets:
Federal funds sold		0.98			1.00			0.99			0.98			1.01
Securities purchased under agreements to resell (d)		(0.22	)		(0.13	)		(0.13	)		(0.07	)		(0.11	)
Interest-bearing cash		0.19			0.20			0.23			0.22			0.21

Total other earning assets		(0.06	)		0.01			0.10			0.10			0.07

Interest income/total earning assets		3.33	%		3.35	%		3.27	%		3.39	%		3.41	%

Liabilities:
Interest-bearing liabilities:
Interest-bearing deposits:
Savings		0.16	%		0.17	%		0.19	%		0.19	%		0.20	%
Other interest-bearing deposits		0.08			0.08			0.09			0.09			0.09
Time deposits		0.90			1.16			1.34			1.46			1.55

Total interest-bearing core deposits		0.19			0.22			0.25			0.27			0.29
Certificates of deposit $100,000 and more (e)		0.59			0.68			0.76			0.60			1.11
Federal funds purchased		0.25			0.25			0.25			0.25			0.25
Securities sold under agreements to repurchase		0.06			0.10			0.11			0.11			0.13
Capital markets trading liabilities		2.41			2.44			2.39			2.41			2.41
Other short-term borrowings		0.20			0.30			0.57			0.40			0.39
Term borrowings (f)		2.25			2.24			2.01			2.02			2.03

Interest expense/total interest-bearing liabilities		0.48			0.52			0.53			0.55			0.58

Net interest spread		2.85	%		2.83	%		2.74	%		2.84	%		2.83	%
Effect of interest-free sources used to fund earning assets		0.12			0.14			0.14			0.14			0.14

Net interest margin		2.97	%		2.97	%		2.88	%		2.98	%		2.97	%

Yields are adjusted to a FTE basis assuming a statutory federal income tax rate of 35 percent and, where applicable, state income taxes.

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

(b)	Includes loans on nonaccrual status.

(c)	Increase beginning in 1Q14 driven by the yield on an HTM municipal bond.

(d)	Driven by negative market rates on reverse repurchase agreements.

(e)	Beginning in 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


																3Q14 Changes vs.
(Dollars and shares in thousands)	3Q14			2Q14			1Q14			4Q13			3Q13			2Q14			3Q13
Tier 1 capital (a) (b)	$	2,780,367		$	2,751,933		$	2,666,486		$	2,618,976		$	2,555,141			1	%		9	%
Tier 2 capital (a)		338,569			340,279			381,619			444,655			449,100			(1	)%		(25	)%

Total capital (a) (b)	$	3,118,936		$	3,092,212		$	3,048,105		$	3,063,631		$	3,004,241			1	%		4	%

Risk-weighted assets (“RWA”) (a)	$	19,354,200		$	19,400,096		$	18,694,719		$	18,878,594		$	19,236,794			*			1	%
Tier 1 ratio (a)		14.37	%		14.19	%		14.26	%		13.87	%		13.28	%
Tier 2 ratio (a)		1.75	%		1.75	%		2.04	%		2.36	%		2.34	%

Total capital ratio (a)		16.12	%		15.94	%		16.30	%		16.23	%		15.62	%

Tier 1 common to risk-weighted assets (a) (c)		11.31	%		11.14	%		11.10	%		10.75	%		10.21	%
Leverage ratio (a)		11.71	%		11.67	%		11.19	%		11.04	%		10.60	%
Total equity to total assets		10.93	%		10.84	%		10.63	%		10.51	%		10.20	%
Adjusted tangible common equity to risk-weighted assets (“TCE/RWA”) (a) (c) (d)		10.67	%		10.61	%		10.65	%		10.37	%		9.71	%
Tangible common equity/tangible assets
(“TCE/TA”) (c) (e)		8.69	%		8.62	%		8.37	%		8.24	%		7.93	%
Period-end shares outstanding (f)		235,249			237,147			236,586			236,370			236,328			(1	)%		*
Cash dividends declared per common share	$	0.05		$	0.05		$	0.05		$	0.05		$	0.05			*			*
Book value per common share	$	9.48		$	9.42		$	9.10		$	8.93		$	8.64
Tangible book value per common share (c)	$	8.80		$	8.74		$	8.41		$	8.23		$	7.95
Market capitalization (millions)	$	2,888.9		$	2,812.6		$	2,919.5		$	2,753.7		$	2,597.2

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

*	Amount is less than one percent.

(a)	Current quarter is an estimate.

(b)	All quarters presented include $200 million of tier 1 qualifying trust preferred securities. Beginning in 1Q15 a portion of these will begin phasing out.

(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)	3Q14 decrease relates to shares purchased under the share repurchase program.

FHN BUSINESS SEGMENT HIGHLIGHTS

Quarterly, Unaudited


																3Q14 Changes vs.
(Thousands)	3Q14			2Q14			1Q14			4Q13			3Q13			2Q14			3Q13
Regional Banking
Net interest income	$	153,855		$	148,654		$	142,010		$	146,427		$	149,541			3	%		3	%
Noninterest income		64,159			66,226			59,992			62,806			63,883			(3	)%		*

Total revenues		218,014			214,880			202,002			209,233			213,424			1	%		2	%
Provision for loan losses		2,204			8,425			12,990			2,585			5,159			(74	)%		(57	)%
Noninterest expense		136,253			133,564			133,050			139,186			131,961			2	%		3	%

Income before income taxes		79,557			72,891			55,962			67,462			76,304			9	%		4	%
Provision for income taxes		28,422			25,843			19,880			24,049			27,554			10	%		3	%

Net income	$	51,135		$	47,048		$	36,082		$	43,413		$	48,750			9	%		5	%

Capital Markets
Net interest income	$	2,952		$	2,590		$	3,478		$	4,301		$	3,811			14	%		(23	)%
Noninterest income		49,895			47,564			56,758			59,509			64,115			5	%		(22	)%

Total revenues		52,847			50,154			60,236			63,810			67,926			5	%		(22	)%
Noninterest expense (a)		47,910			111			52,594			53,130			57,930			NM			(17	)%

Income before income taxes		4,937			50,043			7,642			10,680			9,996			(90	)%		(51	)%
Provision for income taxes		1,697			19,146			2,845			3,981			3,765			(91	)%		(55	)%

Net income	$	3,240		$	30,897		$	4,797		$	6,699		$	6,231			(90	)%		(48	)%

Corporate
Net interest income/(expense)	$	(12,523	)	$	(10,522	)	$	(9,113	)	$	(10,413	)	$	(11,654	)		(19	)%		(7	)%
Noninterest income		4,139			5,214			13,215			7,831			6,558			(21	)%		(37	)%

Total revenues		(8,384	)		(5,308	)		4,102			(2,582	)		(5,096	)		(58	)%		(65	)%
Noninterest expense		18,783			15,798			19,578			18,770			21,739			19	%		(14	)%

Loss before income taxes		(27,167	)		(21,106	)		(15,476	)		(21,352	)		(26,835	)		(29	)%		(1	)%
Benefit for income taxes		(17,723	)		(17,270	)		(11,766	)		(19,004	)		(16,593	)		(3	)%		(7	)%

Net loss	$	(9,444	)	$	(3,836	)	$	(3,710	)	$	(2,348	)	$	(10,242	)		NM			8	%

Non-Strategic
Net interest income	$	15,257		$	16,046		$	15,984		$	16,820		$	17,140			(5	)%		(11	)%
Noninterest income (b)		39,622			7,897			15,765			4,897			15,919			NM			NM

Total revenues		54,879			23,943			31,749			21,717			33,059			NM			66	%
Provision/(provision credit) for loan losses		3,796			(3,425	)		(2,990	)		12,415			4,841			NM			(22	)%
Noninterest expense (c)		43,240			15,859			14,992			46,011			221,926			NM			(81	)%

Income/(loss) before income taxes		7,843			11,509			19,747			(36,709	)		(193,708	)		(32	)%		NM
Provision/(benefit) for income taxes		3,025			4,438			7,686			(42,839	)		(45,820	)		(32	)%		NM

Income/(loss) from continuing operations		4,818			7,071			12,061			6,130			(147,888	)		(32	)%		NM
Income/(loss) from discontinued operations, net of tax		—			—			—			(6	)		123			NM			NM

Net income/(loss)	$	4,818		$	7,071		$	12,061		$	6,124		$	(147,765	)		(32	)%		NM

Total Consolidated
Net interest income	$	159,541		$	156,768		$	152,359		$	157,135		$	158,838			2	%		*
Noninterest income		157,815			126,901			145,730			135,043			150,475			24	%		5	%

Total revenues		317,356			283,669			298,089			292,178			309,313			12	%		3	%
Provision for loan losses		6,000			5,000			10,000			15,000			10,000			20	%		(40	)%
Noninterest expense		246,186			165,332			220,214			257,097			433,556			49	%		(43	)%

Income/(loss) before income taxes		65,170			113,337			67,875			20,081			(134,243	)		(42	)%		NM
Provision/(benefit) for income taxes		15,421			32,157			18,645			(33,813	)		(31,094	)		(52	)%		NM

Income/(loss) from continuing operations		49,749			81,180			49,230			53,894			(103,149	)		(39	)%		NM
Income/(loss) from discontinued operations, net of tax		—			—			—			(6	)		123			NM			NM

Net income/(loss)	$	49,749		$	81,180		$	49,230		$	53,888		$	(103,026	)		(39	)%		NM

NM - Not meaningful

*	Amount is less than one percent.

(a)	2Q14 includes $47.1 million related to agreements with insurance companies for the recovery of expenses FHN incurred in connection with the Sentinel litigation matter which was settled in 2011.

(b)	3Q14 includes $39.7 million of gains on the sales of HFS mortgage loans.

(c)

3Q14 includes $50.0 million of loss accruals related to legal matters, partially offset by $15.0 million of expense reversals related to agreements with insurance companies for the recovery of expenses FHN incurred related to litigation losses in previous periods; 4Q13 includes $57.0 million of net loss accruals related to legal matters, partially offset by a $30.0 million expense reversal related to the resolution of certain legacy and representation and warranty mortgage loan repurchase obligations to a government sponsored entity; 3Q13 includes a $200.0 million expense stemming from the resolution of certain legacy representation and warranty mortgage loan repurchase obligations to a government sponsored entity.

FHN REGIONAL BANKING

Quarterly, Unaudited


																3Q14 Changes vs.
	3Q14			2Q14			1Q14			4Q13			3Q13			2Q14			3Q13
Income Statement (thousands)
Net interest income	$	153,855		$	148,654		$	142,010		$	146,427		$	149,541			3	%		3	%
Provision for loan losses		2,204			8,425			12,990			2,585			5,159			(74	)%		(57	)%
Noninterest income:
NSF / Overdraft fees (a)		11,425			10,636			9,156			11,411			11,660			7	%		(2	)%
Cash management fees		8,522			8,537			8,916			9,063			8,760			*			(3	)%
Debit card income		2,945			2,934			2,655			2,739			2,782			*			6	%
Other		4,705			4,850			4,864			5,112			5,126			(3	)%		(8	)%

Total deposit transactions and cash management		27,597			26,957			25,591			28,325			28,328			2	%		(3	)%
Brokerage, management fees and commissions		12,333			12,844			12,276			11,505			10,868			(4	)%		13	%
Trust services and investment management		6,794			7,325			6,760			6,612			6,665			(7	)%		2	%
Bankcard income (b)		5,346			7,740			4,365			4,815			5,089			(31	)%		5	%
Other service charges		2,802			2,848			2,559			2,873			3,451			(2	)%		(19	)%
Miscellaneous revenue		9,287			8,512			8,441			8,676			9,482			9	%		(2	)%

Total noninterest income		64,159			66,226			59,992			62,806			63,883			(3	)%		*

Noninterest expense:
Employee compensation, incentives, and benefits		51,991			51,870			50,318			50,921			51,656			*			1	%
Other		84,262			81,694			82,732			88,265			80,305			3	%		5	%

Total noninterest expense		136,253			133,564			133,050			139,186			131,961			2	%		3	%

Income before income taxes	$	79,557		$	72,891		$	55,962		$	67,462		$	76,304			9	%		4	%

PPNR (Non-GAAP) (c)	$	81,761		$	81,316		$	68,952		$	70,047		$	81,463			1	%		*

Efficiency ratio (d)		62.50	%		62.16	%		65.87	%		66.52	%		61.83	%

Balance Sheet (millions)
Average loans	$	12,886		$	12,372		$	11,897		$	11,972		$	12,184			4	%		6	%
Average other earning assets		63			57			50			43			54			11	%		17	%
Total average earning assets		12,949			12,429			11,947			12,015			12,238			4	%		6	%
Average core deposits		14,638			14,809			14,857			14,466			14,484			(1	)%		1	%
Average other deposits		465			512			546			581			595			(9	)%		(22	)%
Total average deposits		15,103			15,321			15,403			15,047			15,079			(1	)%		*
Total period-end deposits		15,120			15,418			15,723			15,480			14,862			(2	)%		2	%
Total period-end assets		13,697			13,702			12,891			13,019			12,909			*			6	%

Net interest margin (e)		4.79	%		4.87	%		4.88	%		4.90	%		4.91	%
Net interest spread		3.41			3.46			3.41			3.50			3.49
Loan yield		3.56			3.63			3.61			3.71			3.74
Deposit average yield		0.15			0.17			0.20			0.21			0.25

Key Statistics
Financial center locations		172			172			172			172			182			*			(5	)%

*	Amount is less than one percent.

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

(b)	2Q14 includes $2.8 million of Visa volume incentives.

(c)	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).

(d)	Noninterest expense divided by total revenue.

(e)	Net interest margin is computed using total net interest income adjusted for FTE assuming a statutory federal income tax rate of 35 percent and, where applicable, state income taxes.

FHN CAPITAL MARKETS

Quarterly, Unaudited


																3Q14 Changes vs.
	3Q14			2Q14			1Q14			4Q13			3Q13			2Q14			3Q13
Income Statement (thousands)
Net interest income	$	2,952		$	2,590		$	3,478		$	4,301		$	3,811			14	%		(23	)%
Noninterest income:
Fixed income		41,216			40,457			49,614			50,937			54,428			2	%		(24	)%
Other		8,679			7,107			7,144			8,572			9,687			22	%		(10	)%

Total noninterest income		49,895			47,564			56,758			59,509			64,115			5	%		(22	)%
Noninterest expense (a)		47,910			111			52,594			53,130			57,930			NM			(17	)%

Income before income taxes	$	4,937		$	50,043		$	7,642		$	10,680		$	9,996			(90	)%		(51	)%

Efficiency ratio (b)		90.66	%		NM			87.31	%		83.26	%		85.28	%
Fixed income average daily revenue	$	644		$	642		$	813		$	822		$	850			*			(24	)%

Balance Sheet (millions)
Average trading inventory	$	1,054		$	1,112		$	1,102		$	1,160		$	1,156			(5	)%		(9	)%
Average other earning assets		648			668			628			588			604			(3	)%		7	%
Total average earning assets		1,702			1,780			1,730			1,748			1,760			(4	)%		(3	)%
Total period-end assets		2,338			2,197			2,094			1,511			2,275			6	%		3	%

Net interest margin (c)		0.75	%		0.61	%		0.82	%		1.02	%		0.89	%

NM - Not meaningful

*	Amount is less than one percent.

(a)	2Q14 includes $47.1 million related to agreements with insurance companies for the recovery of expenses FHN incurred in connection with the Sentinel litigation matter which was settled in 2011.

(b)	Noninterest expense divided by total revenue.

(c)	Net interest margin is computed using total net interest income adjusted for FTE assuming a statutory federal income tax rate of 35 percent and, where applicable, state income taxes.

FHN CORPORATE

Quarterly, Unaudited


																3Q14 Changes vs.
	3Q14			2Q14			1Q14			4Q13			3Q13			2Q14			3Q13
Income Statement (thousands)
Net interest income/(expense)	$	(12,523	)	$	(10,522	)	$	(9,113	)	$	(10,413	)	$	(11,654	)		(19	)%		(7	)%
Noninterest income excluding securities gains/(losses)		4,005			5,138			7,558			5,649			6,690			(22	)%		(40	)%
Securities gains/(losses), net (a)		134			76			5,657			2,182			(132	)		76	%		NM
Noninterest expense		18,783			15,798			19,578			18,770			21,739			19	%		(14	)%

Loss before income taxes	$	(27,167	)	$	(21,106	)	$	(15,476	)	$	(21,352	)	$	(26,835	)		(29	)%		(1	)%

Average Balance Sheet (millions)
Average loans	$	153		$	159		$	169		$	182		$	196			(4	)%		(22	)%
Total earning assets	$	3,999		$	4,082		$	4,617		$	4,026		$	3,900			(2	)%		3	%
Net interest margin (b)		(1.22	)%		(1.04	)%		(0.83	)%		(1.00	)%		(1.16	)%

NM - Not meaningful

(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 assuming a statutory federal income tax rate of 35 percent and, where applicable, state income taxes.

FHN NON-STRATEGIC

Quarterly, Unaudited


																3Q14 Changes vs.
	3Q14			2Q14			1Q14			4Q13			3Q13			2Q14			3Q13
Income Statement (thousands)
Net interest income	$	15,257		$	16,046		$	15,984		$	16,820		$	17,140			(5	)%		(11	)%
Noninterest income:
Mortgage warehouse valuation (a)		41,287			8,213			1,045			(720	)		(1,441	)		NM			NM
Miscellaneous revenue (b)		(670	)		1,684			14,720			5,617			17,360			NM			NM

Total noninterest income excluding securities gains/(losses)		40,617			9,897			15,765			4,897			15,919			NM			NM
Securities gains/(losses), net (c)		(995	)		(2,000	)		—			—			—			50	%		NM
Noninterest expense:
Repurchase and foreclosure provision (d)		(4,300	)		—			—			(30,000	)		200,000			NM			NM
Other expenses (e)		47,540			15,859			14,992			76,011			21,926			NM			NM

Total noninterest expense		43,240			15,859			14,992			46,011			221,926			NM			(81	)%
Provision/(provision credit) for loan losses		3,796			(3,425	)		(2,990	)		12,415			4,841			NM			(22	)%

Income/(loss) before income taxes	$	7,843		$	11,509		$	19,747		$	(36,709	)	$	(193,708	)		(32	)%		NM

Average Balance Sheet (millions)
Loans	$	2,724		$	2,851		$	2,993		$	3,119		$	3,272			(4	)%		(17	)%
Loans held-for-sale (f)		298			335			344			343			349			(11	)%		(15	)%
Trading securities		6			7			7			13			16			(14	)%		(63	)%
Allowance for loan losses		(111	)		(117	)		(126	)		(129	)		(131	)		(5	)%		(15	)%
Other assets		78			102			186			471			481			(24	)%		(84	)%
Total assets		2,995			3,178			3,404			3,817			3,987			(6	)%		(25	)%
Net interest margin (g)		2.00	%		2.01	%		1.92	%		1.93	%		1.88	%
Efficiency ratio (h)		77.39	%		61.13	%		47.22	%		NM			NM

Mortgage Warehouse - Period-end (millions)
Ending warehouse balance (loans held-for-sale) (f)	$	120		$	330		$	332		$	336		$	346			(64	)%		(65	)%

Key Servicing Metric
Ending servicing portfolio (millions) (i) (j)	$	1,090		$	1,456		$	1,679		$	9,943		$	15,033			(25	)%		(93	)%

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

NM - Not meaningful

(a)	3Q14 includes $39.7 million in gains on the sale of HFS mortgage loans; 2Q14 fair value adjustments reflect new information on market pricing for similar assets primarily related to the non-performing portion of the held-for-sale portfolio.

(b)	1Q14 increase reflects the receipt of previously unrecognized servicing fees in conjunction with transfers of servicing in 1Q14; 3Q13 increase reflects the effect of the terms of the agreement to sell servicing.

(c)	3Q14 includes a $1.0 million loss on the sale of an investment; 2Q14 includes a $2.0 million negative fair value adjustment of an investment.

(d)	3Q14 expense reversal associated with the settlement of certain repurchase claims.

(e)

3Q14 includes $50.0 million of loss accruals related to legal matters, partially offset by $15.0 million of expense reversals associated with agreements with insurance companies for the recovery of expenses FHN incurred related to litigation losses in previous periods; 4Q13 includes $57.0 million of net loss accruals related to legal matters.

(f)	3Q14 decrease related to the sale of mortgage loans HFS late in the quarter.

(g)	Net interest margin is computed using total net interest income adjusted for FTE assuming a statutory federal income tax rate of 35 percent and, where applicable, state income taxes.

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

(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.

(j)	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


																3Q14 Changes vs.
(Thousands)	3Q14			2Q14			1Q14			4Q13			3Q13			2Q14			3Q13
Allowance for Loan Losses Walk-Forward
Beginning reserve	$	243,628		$	247,246		$	253,809		$	255,710		$	261,934			(1	)%		(7	)%
Provision		6,000			5,000			10,000			15,000			10,000			20	%		(40	)%
Charge-offs		(23,684	)		(18,764	)		(24,692	)		(29,000	)		(26,046	)		26	%		(9	)%
Recoveries		12,697			10,146			8,129			12,099			9,822			25	%		29	%

Ending balance (Restricted - $.8 million) (a)	$	238,641		$	243,628		$	247,246		$	253,809		$	255,710			(2	)%		(7	)%

Reserve for unfunded commitments		2,313			2,209			2,882			3,017			2,956			5	%		(22	)%
Total allowance for loan losses plus reserve for unfunded commitments	$	240,954		$	245,837		$	250,128		$	256,826		$	258,666			(2	)%		(7	)%

Allowance for Loan Losses
Regional Banking	$	127,873		$	131,801		$	128,234		$	121,027		$	125,440			(3	)%		2	%
Non-Strategic		110,768			111,827			119,012			132,782			130,270			(1	)%		(15	)%
Corporate (b)		NM			NM			NM			NM			NM			NM			NM

Total allowance for loan losses	$	238,641		$	243,628		$	247,246		$	253,809		$	255,710			(2	)%		(7	)%

Nonperforming Assets
Regional Banking
Nonperforming loans	$	70,805		$	89,191		$	83,275		$	87,324		$	118,507			(21	)%		(40	)%
Foreclosed real estate (c)		25,404			26,598			27,705			28,806			33,594			(4	)%		(24	)%

Total Regional Banking	$	96,209		$	115,789		$	110,980		$	116,130		$	152,101			(17	)%		(37	)%

Non-Strategic
Nonperforming loans (d)	$	139,038		$	138,789		$	153,972		$	163,104		$	164,534			*			(15	)%
Nonperforming loans held-for-sale after fair value adjustments (e)		7,931			69,184			61,631			61,139			65,972			(89	)%		(88	)%
Foreclosed real estate (c)		9,857			12,183			15,265			16,947			16,437			(19	)%		(40	)%

Total Non-Strategic	$	156,826		$	220,156		$	230,868		$	241,190		$	246,943			(29	)%		(36	)%

Corporate
Nonperforming loans	$	3,903		$	3,636		$	3,672		$	4,598		$	5,001			7	%		(22	)%

Total nonperforming assets	$	256,938		$	339,581		$	345,520		$	361,918		$	404,045			(24	)%		(36	)%

Net Charge-Offs
Regional Banking	$	6,132		$	4,858		$	5,783		$	6,997		$	4,347			26	%		41	%
Non-Strategic		4,855			3,760			10,780			9,904			11,877			29	%		(59	)%

Total net charge-offs	$	10,987		$	8,618		$	16,563		$	16,901		$	16,224			27	%		(32	)%

Consolidated Key Ratios (f)
NPL %		1.35	%		1.47	%		1.59	%		1.66	%		1.87	%
NPA %		1.57			1.71			1.87			1.95			2.19
Net charge-offs %		0.28			0.22			0.45			0.44			0.41
Allowance / loans		1.51			1.54			1.64			1.65			1.66
Allowance / NPL		1.12	x		1.05	x		1.03	x		1.00	x		0.89	x
Allowance / NPA		0.96	x		0.90	x		0.87	x		0.84	x		0.76	x
Allowance / charge-offs		5.47	x		7.05	x		3.68	x		3.79	x		3.97	x

Other
Loans past due 90 days or more (g)		57,786		$	68,369		$	63,747		$	69,863		$	75,109			(15	)%		(23	)%
Guaranteed portion (g)		27,020			32,782			35,063			35,260			37,509			(18	)%		(28	)%
Foreclosed real estate from government insured loans		12,735			18,771			23,065			25,809			21,596			(32	)%		(41	)%
Period-end loans, net of unearned income (millions)		15,812			15,796			15,119			15,389			15,409			*			3	%

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 September 30, 2014.

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

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

(d)	2Q14 decrease is primarily related to a TRUPS sale.

(e)	3Q14 decrease is related to the sale of held-for-sale mortgage loans.

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

(g)	Includes loans held-for-sale.

FHN ASSET QUALITY: CONSOLIDATED

Quarterly, Unaudited


																3Q14 Changes vs.
	3Q14			2Q14			1Q14			4Q13			3Q13			2Q14			3Q13
Key Portfolio Details
C&I
Period-end loans ($ millions)	$	8,477		$	8,403		$	7,753		$	7,924		$	7,747			1	%		9	%

30+ Delinq. % (a)		0.10	%		0.19	%		0.27	%		0.13	%		0.11	%
NPL %		0.49			0.58			0.68			1.01			1.33
Charge-offs % (qtr. annualized)		NM			0.20			0.22			0.21			0.08

Allowance / loans %		0.82	%		0.82	%		0.94	%		1.09	%		1.18	%
Allowance / charge-offs		NM			4.35	x		4.27	x		5.33	x		14.16	x

Commercial Real Estate
Period-end loans ($ millions)	$	1,278		$	1,232		$	1,152		$	1,133		$	1,174			4	%		9	%

30+ Delinq. % (a)		0.33	%		1.10	%		1.61	%		0.90	%		0.60	%
NPL %		1.11			1.14			1.30			1.60			2.13
Charge-offs % (qtr. annualized)		0.47			NM			0.12			NM			NM

Allowance / loans %		1.21	%		1.28	%		1.35	%		0.94	%		0.94	%
Allowance / charge-offs		2.64	x		NM			10.97	x		NM			NM

Consumer Real Estate
Period-end loans ($ millions)	$	5,131		$	5,219		$	5,258		$	5,333		$	5,458			(2	)%		(6	)%

30+ Delinq. % (a)		1.04	%		0.93	%		1.01	%		1.13	%		1.05	%
NPL %		2.41			2.51			2.51			2.20			2.23
Charge-offs % (qtr. annualized)		0.60			0.20			0.56			0.62			0.87

Allowance / loans %		2.31	%		2.26	%		2.35	%		2.38	%		2.21	%
Allowance / charge-offs		3.83	x		11.30	x		4.17	x		3.79	x		2.54	x

Permanent Mortgage
Period-end loans ($ millions)	$	573		$	594		$	622		$	662		$	698			(4	)%		(18	)%

30+ Delinq. % (a)		2.73	%		1.71	%		1.44	%		2.62	%		2.48	%
NPL %		5.93			6.23			6.46			5.76			5.30
Charge-offs % (qtr. annualized)		0.25			0.12			1.04			1.46			0.29

Allowance / loans %		3.53	%		3.99	%		3.62	%		3.40	%		3.66	%
Allowance / charge-offs		14.17	x		31.85	x		3.39	x		2.27	x		12.26	x

Credit Card and Other
Period-end loans ($ millions)	$	353		$	348		$	334		$	337		$	332			1	%		6	%

30+ Delinq. % (a)		1.44	%		1.39	%		1.30	%		1.35	%		1.11	%
NPL %		0.20			0.39			0.42			0.42			0.42
Charge-offs % (qtr. annualized)		3.19			3.35			3.71			3.05			2.61

Allowance / loans %		4.17	%		5.01	%		3.91	%		2.22	%		2.09	%
Allowance / charge-offs		1.31	x		1.51	x		1.05	x		0.73	x		0.82	x

NM - Not meaningful

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

FHN ASSET QUALITY: REGIONAL BANKING

Quarterly, Unaudited


																3Q14 Changes vs.
	3Q14			2Q14			1Q14			4Q13			3Q13			2Q14			3Q13
Total Regional Banking
Period-end loans ($ millions)	$	13,002		$	12,853		$	12,042		$	12,167		$	12,039			1	%		8	%

30+ Delinq. % (a)		0.29	%		0.43	%		0.52	%		0.38	%		0.35	%
NPL %		0.54			0.69			0.69			0.72			0.98
Charge-offs % (qtr. annualized)		0.19			0.16			0.20			0.23			0.14

Allowance / loans %		0.98	%		1.03	%		1.06	%		0.99	%		1.04	%
Allowance / charge-offs		5.26	x		6.76	x		5.47	x		4.36	x		7.27	x

Key Portfolio Details
C&I
Period-end loans ($ millions)	$	8,022		$	7,947		$	7,287		$	7,431		$	7,254			1	%		11	%

30+ Delinq. % (a)		0.09	%		0.20	%		0.26	%		0.14	%		0.12	%
NPL % (b)		0.37			0.57			0.55			0.59			0.92
Charge-offs % (qtr. annualized)		NM			0.09			0.07			0.24			0.07

Allowance / loans %		0.81	%		0.84	%		0.93	%		0.97	%		1.06	%
Allowance / charge-offs		NM			10.12	x		13.74	x		4.24	x		15.09	x

Commercial Real Estate
Period-end loans ($ millions)	$	1,274		$	1,226		$	1,145		$	1,124		$	1,164			4	%		9	%

30+ Delinq. % (a) (c)		0.33	%		1.10	%		1.62	%		0.91	%		0.61	%
NPL %		1.04			1.06			1.05			1.35			1.87
Charge-offs % (qtr. annualized)		0.49			NM			0.10			NM			NM

Allowance / loans %		1.18	%		1.25	%		1.31	%		0.88	%		0.88	%
Allowance / charge-offs		2.46	x		NM			13.38	x		NM			NM

Consumer Real Estate
Period-end loans ($ millions)	$	3,356		$	3,334		$	3,280		$	3,278		$	3,291			1	%		2	%

30+ Delinq. % (a)		0.61	%		0.64	%		0.62	%		0.65	%		0.66	%
NPL %		0.83			0.90			0.92			0.85			0.90
Charge-offs % (qtr. annualized)		0.39			0.18			0.18			0.12			0.14

Allowance / loans %		0.99	%		0.97	%		0.99	%		0.96	%		0.95	%
Allowance / charge-offs		2.55	x		5.32	x		5.42	x		7.72	x		6.84	x

Credit Card, Permanent Mortgage, and Other
Period-end loans ($ millions)	$	351		$	346		$	330		$	334		$	330			1	%		6	%

30+ Delinq. % (a)		1.49	%		1.43	%		1.38	%		1.55	%		1.29	%
NPL %		0.15			0.14			0.27			0.16			0.20
Charge-offs % (qtr. annualized)		3.01			3.05			3.43			2.92			2.52

Allowance / loans %		4.07	%		4.98	%		3.91	%		2.21	%		2.04	%
Allowance / charge-offs		1.36	x		1.64	x		1.13	x		0.76	x		0.83	x

ASSET QUALITY: CORPORATE

Permanent Mortgage
Period-end loans ($ millions)	$	147		$	155		$	164		$	175		$	185			(5	)%		(21	)%

30+ Delinq. % (a)		2.24	%		1.91	%		1.83	%		2.34	%		2.05	%
NPL %		2.65			2.34			2.24			2.63			2.70
Charge-offs % (qtr. annualized)		NM			NM			NM			NM			NM

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

NM - Not meaningful

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

(b)	3Q14 decrease is primarily related to loans returning to accrual.

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

FHN ASSET QUALITY: NON-STRATEGIC

Quarterly, Unaudited


																3Q14 Changes vs.
	3Q14			2Q14			1Q14			4Q13			3Q13			2Q14			3Q13
Total Non-Strategic
Period-end loans ($ millions)	$	2,663		$	2,788		$	2,913		$	3,047		$	3,185			(4	)%		(16	)%

30+ Delinq. % (a)		1.73	%		1.24	%		1.38	%		1.70	%		1.53	%
NPL % (b)		5.22			4.98			5.28			5.35			5.17
Charge-offs % (qtr. annualized)		0.71			0.53			1.46			1.26			1.44

Allowance / loans %		4.16	%		4.01	%		4.08	%		4.36	%		4.09	%
Allowance / charge-offs		5.75	x		7.41	x		2.72	x		3.38	x		2.76	x

Key Portfolio Details C&I
Period-end loans ($ millions)	$	456		$	456		$	466		$	492		$	493			*			(8	)%

30+ Delinq. % (a)		0.23	%		0.02	%		0.43	%		0.06	%		0.04	%
NPL % (b)		2.64			0.58			2.64			7.33			7.36
Charge-offs % (qtr. annualized)		NM			1.99			2.48			NM			0.27

Allowance / loans %		1.01	%		0.38	%		1.02	%		2.87	%		2.89	%
Allowance / charge-offs		NM			0.19	x		0.39	x		NM			10.61	x

Commercial Real Estate
Period-end loans ($ millions)	$	5		$	5		$	7		$	9		$	10			*			(50	)%

30+ Delinq. % (a)		—	%		—	%		—	%		—	%		—	%
NPL %		20.01			19.34			40.93			32.30			32.16
Charge-offs % (qtr. annualized)		NM			NM			3.46			3.72			1.74

Allowance / loans %		9.36	%		9.41	%		7.43	%		7.98	%		7.55	%
Allowance / charge-offs		NM			NM			1.80	x		2.00	x		2.93	x

Consumer Real Estate
Period-end loans ($ millions)	$	1,775		$	1,885		$	1,978		$	2,055		$	2,167			(6	)%		(18	)%

30+ Delinq. % (a)		1.84	%		1.45	%		1.65	%		1.89	%		1.64	%
NPL %		5.40			5.35			5.14			4.36			4.26
Charge-offs % (qtr. annualized)		0.98			0.23			1.17			1.39			1.93

Allowance / loans %		4.79	%		4.54	%		4.60	%		4.64	%		4.13	%
Allowance / charge-offs		4.76	x		19.65	x		3.86	x		3.25	x		2.08	x

Permanent Mortgage
Period-end loans ($ millions)	$	415		$	427		$	446		$	475		$	499			(3	)%		(17	)%

30+ Delinq. % (a)		2.88	%		1.59	%		1.21	%		2.59	%		2.55	%
NPL %		7.13			7.71			7.99			6.96			6.28
Charge-offs % (qtr. annualized)		0.29			0.15			1.46			2.04			0.41

Allowance / loans %		4.84	%		5.52	%		5.00	%		4.68	%		5.07	%
Allowance / charge-offs		16.57	x		35.18	x		3.36	x		2.25	x		12.14	x

Other Consumer
Period-end loans ($ millions)	$	12		$	15		$	16		$	16		$	16			(20	)%		(25	)%

30+ Delinq. % (a)		2.24	%		1.79	%		1.95	%		2.33	%		1.63	%
NPL %		5.38			9.16			9.03			8.66			8.53
Charge-offs % (qtr. annualized)		6.74			7.81			6.83			3.35			2.12

Allowance / loans %		4.48	%		2.94	%		2.12	%		2.25	%		3.06	%
Allowance / charge-offs		0.63	x		0.36	x		0.30	x		0.66	x		1.41	x

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)	3Q14 increase related to interest deferral elected by an insurance TRUPS; 2Q14 and 1Q14 NPL decrease related to TRUPS sales.

FHN: PORTFOLIO METRICS

Unaudited

C&I Portfolio: $8.5 Billion (53.6% of Total Loans) as of September 30, 2014


	% OS
General Corporate, Commercial, and Business Banking Loans		84	%
Loans to Mortgage Companies		11	%
Trust Preferred Loans		4	%
Bank Holding Company Loans		1	%

Consumer Real Estate (primarily Home Equity) Portfolio: $5.1 Billion (32.4% of Total Loans)


Origination LTV and FICO for Portfolio as of September 30, 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	%		9	%
FICO score 720-739		2	%		4	%		4	%		2	%
FICO score 700-719		1	%		4	%		3	%		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 September 30, 2014	Loan-to-Value
(excludes whole loan insurance)	<=60%			>60% - <=80%			>80% - 90%			>90%
FICO score greater than or equal to 740		12	%		24	%		18	%		11	%
FICO score 720-739		1	%		4	%		3	%		3	%
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	%


Origination LTV and FICO for Portfolio - Non-Strategic as of September 30, 2014	Loan-to-Value
(excludes whole loan insurance)	<=60%			>60% - <=80%			>80% -90%			>90%
FICO score greater than or equal to 740		8	%		21	%		15	%		5	%
FICO score 720-739		2	%		6	%		6	%		2	%
FICO score 700-719		2	%		5	%		7	%		2	%
FICO score 660-699		2	%		5	%		4	%		3	%
FICO score 620-659		—	%		1	%		1	%		1	%
FICO score less than 620		—	%		—	%		—	%		2	%

Consumer Real Estate Portfolio Detail:


			Origination Characteristics
Vintage	Balances ($B)		W/A Age (mo.)		CLTV			FICO			% TN			% 1st lien
pre-2003	$	0.1		153		78	%		703			43	%		31	%
2003	$	0.2		135		76	%		719			30	%		37	%
2004	$	0.4		122		80	%		721			19	%		27	%
2005	$	0.6		110		81	%		728			16	%		16	%
2006	$	0.5		99		78	%		732			21	%		17	%
2007	$	0.6		87		81	%		737			26	%		19	%
2008	$	0.3		76		75	%		745			72	%		50	%
2009	$	0.1		64		72	%		749			87	%		57	%
2010	$	0.2		50		80	%		751			92	%		73	%
2011	$	0.4		38		77	%		759			90	%		86	%
2012	$	0.7		27		77	%		763			89	%		91	%
2013	$	0.6		16		77	%		756			86	%		85	%
2014	$	0.4		4		81	%		757			86	%		89	%
Total	$	5.1		65		78	%		743	(a)		58	%		54	%

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

FHN NON-GAAP TO GAAP RECONCILIATION

Quarterly, Unaudited


(Dollars and shares in thousands, except per share data)	3Q14			2Q14			1Q14			4Q13			3Q13
Tangible Common Equity (Non-GAAP)
(A) Total equity (GAAP)	$	2,621,941		$	2,626,151		$	2,544,137		$	2,500,751		$	2,433,293
Less: Noncontrolling interest (a)		295,431			295,431			295,431			295,431			295,431
Less: Preferred stock		95,624			95,624			95,624			95,624			95,624

(B) Total common equity	$	2,230,886		$	2,235,096		$	2,153,082		$	2,109,696		$	2,042,238
Less: Intangible assets (GAAP) (b)		160,987			161,968			162,950			163,931			162,695

(C) Tangible common equity (Non-GAAP)	$	2,069,899		$	2,073,128		$	1,990,132		$	1,945,765		$	1,879,543
Less: Unrealized gains/(losses) on AFS securities, net of tax		4,308			15,596			(1,762	)		(11,241	)		11,153

(D) Adjusted tangible common equity (Non-GAAP) (c)	$	2,065,591		$	2,057,532		$	1,991,894		$	1,957,006		$	1,868,390

Tangible Assets (Non-GAAP)
(E) Total assets (GAAP)	$	23,986,787		$	24,222,750		$	23,941,989		$	23,789,833		$	23,858,753
Less: Intangible assets (GAAP) (b)		160,987			161,968			162,950			163,931			162,695

(F) Tangible assets (Non-GAAP)	$	23,825,800		$	24,060,782		$	23,779,039		$	23,625,902		$	23,696,058

Period-end Shares Outstanding
(G) Period-end shares outstanding		235,249			237,147			236,586			236,370			236,328

Tier 1 Common (Non-GAAP)
(H) Tier 1 capital (d) (e)	$	2,780,367		$	2,751,933		$	2,666,486		$	2,618,976		$	2,555,141
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)	$	2,189,927		$	2,161,493		$	2,076,046		$	2,028,536		$	1,964,701

Risk Weighted Assets
(J) Risk weighted assets (d) (e)	$	19,354,200		$	19,400,096		$	18,694,719		$	18,878,594		$	19,236,794

Ratios
(C)/(F) Tangible common equity to tangible assets (“TCE/TA”) (Non-GAAP)		8.69	%		8.62	%		8.37	%		8.24	%		7.93	%
(A)/(E) Total equity to total assets (GAAP)		10.93	%		10.84	%		10.63	%		10.51	%		10.20	%
(C)/(G) Tangible book value per common share (Non-GAAP)	$	8.80		$	8.74		$	8.41		$	8.23		$	7.95
(B)/(G) Book value per common share (GAAP)	$	9.48		$	9.42		$	9.10		$	8.93		$	8.64
(I)/(J) Tier 1 common to risk weighted assets (Non-GAAP) (d)		11.31	%		11.14	%		11.10	%		10.75	%		10.21	%
(H)/(E) Tier 1 capital to total assets (GAAP) (d)		11.59	%		11.36	%		11.14	%		11.01	%		10.71	%
(D)/(J) Adjusted tangible common equity to risk weighted assets (“TCE/RWA”) (Non-GAAP) (c) (d)		10.67	%		10.61	%		10.65	%		10.37	%		9.71	%

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 (“TCE/RWA”): Common equity excluding intangible assets and unrealized gains/losses on available-for-sale securities divided by risk weighted assets.

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

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.

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.

Key Ratios

Return on Average Assets: Ratio is annualized net income to average total assets.

Return on Average Common Equity: Ratio is annualized net income available to common shareholders to average common equity.

Fee Income to Total Revenue: Ratio is fee income excluding securities gains/(losses) to total revenue excluding securities gains/(losses).

Efficiency Ratio: Ratio is noninterest expense to total revenue excluding securities gains/(losses).

Asset Quality - Consolidated Key Ratios

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

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

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

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

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

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

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

First Horizon National Corporation

Third Quarter 2014 Earnings

October 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 by or reference cautionary statements.

A number of factors could cause actual results to differ materially

from those in the forward-looking information.

These factors are outlined in our recent earnings and other press

releases

and

detail

the

most

current

10-Q

and

10-K.

FHN

disclaims

any

obligation

update

any

such

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

or therein to reflect future events or developments.

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

Executing Profitable Growth Opportunities

Rationalizing Expenses

Non-Strategic Average Loan Run-Off

Regional Bank Areas of Loan Growth

Year Over Year

Solid progress toward achieving long-term bonefish

profitability

Repurchased $24mm or 2 million common shares in 3Q14;

$287mm or 30 million total shares repurchased with VWAP at

$9.42 since October 2011

Consolidated and Regional Banking average loan growth of

1% and 6% year over year, respectively

Capitalizing on profitable growth opportunities in CRE, ABL,

Mid-Atlantic, and Middle Tennessee

CRE portfolio comprises 8% of average total loan

portfolio

Expenses down 8% year over year

Markets:

Lending Areas:

Middle TN

Mid-Atlantic

CRE

ABL

Commercial

PC/WM

10%

29%

13%

31%

Average Regional Banking loan growth from 3Q13 to 3Q14.

3Q14 excludes the impact of a +$4mm mortgage repurchase provision recovery and a net -$35mm in accrued legal expense.

3Q13 excludes -$200mm mortgage repurchase provision expense. This is a non-GAAP number.

$180

$200

$220

$240mm

3Q13

3Q14

$2.0

$2.5

$3.0

$3.5B

3Q13

3Q14

-8%

-17%

Core Businesses Relative Positioning

Balance Sheet Positioned to Benefit from Rising Rates

Returns

Key

Bonefish

Metrics

ROTCE

ROA

Capital ratios remain ~200-300bps

above normalized Bonefish Tier 1

Common capital levels

Capital assigned by risk-adjusted assets

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 63%

Significant latent income embedded in

balance sheet

A 200bps rise in rates would have

improved NII by ~$63mm annually

and added ~35bps to Core NIM

FHN

Peers

8.89%

10.54%

0.86%

0.89%

3.13%

3.39%

0.19%

0.18%

45%

30%

77%

65%

All non-GAAP numbers reconciled in the appendix. ¹Core Businesses include Regional Banking, Capital Markets, and Corporate. All Core data is Non-GAAP.

ROTCE, ROA, NIM, and NCOs are annualized. ROTCE is Non-GAAP.

All else equal, a 200bps rate shock results in ~$63mm increase in Core Businesses annual NII (see slide 13), as Non-Strategic is interest rate neutral.

Peer data is asset weighted as of 2Q14. Peers defined in appendix.

FINANCIAL RESULTS

3Q14 Consolidated Financial Results

Net Interest Income

Fee Income

Expense

EPS

$ in millions, except EPS

Financial Results

3Q14

$160

Net Income Available to Common Shareholders

Loan Loss Provision

$158

$246

$45

$0.19

3Q14 vs

+$1

+$7

-$187

-$4

+$153

+$0.64

2Q14

$157

$127

$165

$77

$0.32

3Q13

$159

$150

$434

$10

($107)

-$0.45

2Q14

+$3

+$31

+$81

+$1

-$31

-$0.13

3Q13

Actuals

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

Total average loans up 2% linked quarter and total average deposits relatively stable

Stable net interest margin of 2.97% linked quarter and NII up due to strong loan growth in Regional Bank

Fee income positively impacted by gains on sales of held-for-sale mortgage loans

Loan loss provision of $6mm with NCOs of $11mm in 3Q14 vs $5mm of provision and $9mm of NCOs in 2Q14

Expense

down

year

over

year

Tier

Common

11.3%

Numbers may not add to total due to rounding. All non-GAAP numbers reconciled in the appendix.

3Q13 excludes -$200mm mortgage repurchase provision expense. These numbers are non-GAAP.

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

3Q14 excludes the impact of a +$4mm mortgage repurchase provision recovery and a net -$35mm in accrued legal expense.

3Q14 Notable Items

Impact to EPS

Gains on sales of held-for-sale

loans in non-strategic portfolio

+$25mm

After-Tax Amount

+$0.11

Loss accruals related to legal

matters

-$32mm

-$0.13

Notable Item

Pre-Tax Amount

+$40mm

-$50mm

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

Litigation expense recovery

+$10mm

+$0.04

+$15mm

Refer to financial supplement for other notable items.

After-tax impact assumes a tax rate of ~37%.

3Q14 Segment Highlights

Numbers

may

not

add

total

due

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 and $1.6mm of preferred stock dividends in each quarter.

Drivers and Impacts

Net Income

$ in millions,

except EPS

3Q14

Per Share

Impact

Regional

Banking

Capital

Markets

Corporate

Core

Businesses

Non-

Strategic

Total

2Q14

$47

$31

$(8)

$70

$77

3Q13

$49

$(15)

$40

$(148)

$(107)

3Q14

$51

$(14)

$41

$45

$0.22

$0.01

$(0.06)

$0.17

$0.02

$0.19

Fixed income ADR of $644k in 3Q14 vs $642k in 2Q14

Linked quarter increase in expense driven by a 2Q14 $47mm expense

reversal associated with the Sentinel lawsuit settled in 2011

3Q14 includes +$40mm gain on sales of held-for-sale mortgage loans, net

-$35mm accruals related to legal matters, +$4mm mortgage repurchase

provision recovery

2Q14 included +$8mm of valuation adjustment to held-for-sale loans

3Q13 included -$200mm mortgage repurchase provision

Loan loss provision of $4mm in 3Q14 vs 2Q14 credit of -$3mm

Pre-tax income is up 9% linked quarter and 4% year over year

3Q14 provision of $2mm vs 2Q14 provision of $8mm

Average loans up 4% linked quarter

Expense up linked quarter, primarily due to Visa-related derivative

expense of $3mm in 3Q14

Segment EPS impacts are non-GAAP numbers and reconciled in the table. EPS impacts are calculated using the 3Q14 net income column divided by the 237mm diluted shares outstanding.

Regional Banking Financial Results

Net Interest Income

Fee Income

Expense

$ in millions

Financial Results

3Q14

$154

Net Income

Loan Loss Provision

$64

$136

$51

3Q14 vs

+$4

+$0

+$4

-$3

+$2

2Q14

$149

$66

$134

$47

3Q13

$150

$64

$132

$49

2Q14

+$5

-$2

+$3

-$6

+$4

3Q13

Actuals

Average loans increased 4% linked quarter

Solid loan growth in Loans to Mortgage Companies, CRE, ABL, Mid-Atlantic, and Middle TN

Revenues up 1% linked quarter

NII up 3% from higher loan balances and lower deposit costs

Fee income down slightly linked quarter; solid year-over-year gains in trust, brokerage and bankcard fees

Fees from deposit transactions up 2% linked quarter, but slightly down year over year

Expenses up 2% linked quarter due to investments in technology upgrades and professional fees

3Q14 net charge-offs of $6mm, or annualized 0.19% of average loans, compared to $5mm in 2Q14

Numbers may not add to total due to rounding.

Average Regional Banking loan growth from 2Q14 to 3Q14.

Commercial and Private Client & Wealth Management loans are originated within the geographical markets.

Profitable Growth Opportunities: Regional Banking

Broad Product Offerings with Focus on

Specialty Lending Provide Growth Opportunities

Regional Banking Linked Quarter Loan Growth

Regional Banking average loan growth of 6% year

over year and 4% linked quarter

CRE increase driven by customers funding up

commitments, opportunities in the REIT sector and

growth in Mid-Atlantic, Middle TN and Southeast

markets

Pricing and underwriting remain competitive

Regional

Bank

Areas

Linked

Quarter

Loan

Growth

Commercial

Business Banking

Private Client / Wealth Management

Retail

Specialty Lending

+4%

$14B

Markets:

27%

$3.1B

$3.2B

$0.8B

$1.7B

$1.8B

$2.1B

$4.5B

$4.8B

2Q14

3Q14

$10

$12

Mid-Atlantic

Middle TN

Loans to Mortgage Companies

CRE

Commercial

Lending Areas:

PC/WM

16%

Capital Markets

Capital Markets Provides a Unique Business Model

$800mm

Capital Markets Revenue and Expense

Fixed income average daily revenue at $644k in 3Q14

Lower levels of fixed income ADR due to market

conditions

Expense increase driven by a $47mm expense reversal

in 2Q14 associated with the Sentinel lawsuit, which

was settled in 2011

Focused on investing in extensive fixed income

distribution platform:

Expansion of municipal products platform

Continued development of public finance capability

Fixed income business model highly adaptable to

various market conditions

Numbers may not add to total due to rounding.

2011 excludes $36.7mm of expense associated with the Sentinel settlement. 1Q14-3Q14 is annualized and excludes the $47mm recovery of the Sentinel settlement expense and legal fees.

These are non-GAAP numbers and are reconciled in the appendix.

$3mm

Left Axis:

Right Axis:

NII

Fee Income

Expense: Sentinel Expense Reversal

$ in millions, except ADR

Financial Results

3Q14

Pre-Tax Income

$50

3Q14 vs

-$1

-$14

+$0

-$5

2Q14

$48

-$47

$50

3Q13

$64

$10

2Q14

+$0

+$2

+$47

-$45

3Q13

Actuals

Expense: All Other Expense

$48

-$10

$47

$58

+$1

Average Daily Revenue (ADR)

$644k

$642k

$850k

-$206k

+$2k

$200

$400

$600

Revenue

Expense

ADR

Net Interest Income Sensitivity Impact²

NII and Net Interest Margin

Balance Sheet Positioned to Benefit from Rising Rates

NIM was flat linked quarter at 2.97% in 3Q14

NIM likely to decline to ~2.90% range, primarily due to:

Seasonal inflows of deposits

Additional deposits related to the branch acquistion¹

Excess cash balances at the Fed

Regional Banking average deposit rate paid of 15bps in 3Q14 vs 17bps in 2Q14

Attractive and stable low-cost funding mix in Regional Banking with 55% DDA and interest checking deposits

Floating rate loans comprise 65% vs fixed rate loans at 35% of loan portfolio

Consolidated Net Interest Margin

2.95%

2.96%

2.97%

2.98%

2.88%

2.97%

2.6%

2.7%

2.8%

2.9%

3.0%

3.1%

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

3Q14

-1.3%

-$8mm

+1.2%

+$7mm

+4.9%

+$31mm

+10.0%

+$63mm

-3%

12%

Long End

-50bps

Long End

+50bps

+100bps

+200bps

Numbers may not add to total due to rounding. Anticipated close October 2014. Estimated deposit balances of ~$440mm as of 10/16/14.

Analysis uses FHN’s balance sheet as of 2Q14 and is non-GAAP. Long End +50bps assumes yield curve spreads widen ~50bps. Long end -50bps 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.

Continued Efficiencies

Execution Capabilities Demonstrated

Annualized

noninterest

expense

declined

20%

from

3Q11

Ongoing efficiency opportunities:

Continued wind-down of Non-Strategic segment (decreased legal, credit, and repurchase expense)

Streamline end-to-end credit delivery process

Reduce corporate real estate footprint

Right-size branch network as consumer usage shifts to FHN’s expanded digital banking platforms

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

3Q11 excludes -$53mm mortgage repurchase provision. 3Q12 excludes -$7mm legal expense. 3Q13 excludes -$200mm mortgage repurchase provision.

3Q14 excludes the impact of a +$4mm mortgage repurchase provision recovery and a net -$35mm in accrued legal expense. These are non-GAAP numbers and a reconciliation is provided in the appendix.

Peer data is for 2011, 2012, 2013, and 1H2014 annualized. Peers defined in appendix.

Annualized Noninterest Expense

Noninterest Expense Trends Since 2011

Non-Performing Assets

Net Charge-Offs

Asset Quality Trends

Continued Improvement in Credit Trends

Reserves

$280mm

$20mm

Net charge-offs of $11mm, compared to $9mm in

2Q14 and $16mm in 3Q13

NPL levels at $222mm, down 26% linked quarter and

37% year over year

Commercial NPLs down 11% linked quarter and

56% year over year

Numbers may not add due to rounding.

Net charge-off % is annualized.

0.0%

0.3%

0.6%

0.9%

1.2%

$10

$15

3Q13

4Q13

1Q14

2Q14

3Q14

NCOs $

Provision $

NCO %¹

$100

$200

$300

$400

3Q13

4Q13

1Q14

2Q14

3Q14

NPLs

NPLs Held for Sale

ORE

$500mm

1.0%

1.2%

1.4%

1.6%

1.8%

2.0%

$180

$200

$220

$240

$260

3Q13

4Q13

1Q14

2Q14

3Q14

Reserves $

Reserves

Loans

3Q14

Consolidated

Core Businesses

Long-Term Targets

ROTCE

8.60%

8.89%

15.0 –

20.0%

ROA

0.83%

0.86%

1.25 -

1.45%

NIM

2.97%

3.13%

3.50 -

4.00%

Tier 1 Common

11.3%

8.0 –

9.0%

NCO / Average Loans

0.28%

0.19%

0.30 -

0.70%

Fee Income / Revenue

50%

45%

40 -

50%

Efficiency Ratio

77%

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.

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.

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

Building Long-Term Earnings Power: Bonefish Targets

Focused on Growing Our Company Selectively and Profitably While Positioning

Our Balance Sheet for Sustainable, Higher Returns in the Long Term

Closing the Gap to Bonefish Targets

Building a Foundation for Long-Term Earnings Power

Current

ROTCE

Rise in

Interest

Rates

Target

Bonefish

ROTCE

Growth

Opportunities

Economic

Profit

Improvement

Optimize/

Redeploy

Capital

Continued

Efficiencies

Non-Strategic

wind-down

Infrastructure

reductions

Resource

allocation to

profitable

businesses

Product

profitability

Process

Improvements

Branch

Network

Rationalization

Business Mix

Shift

Dividends

buybacks

M&A

Latent

income

embedded

in asset-

sensitive

balance

sheet

Specialty

lending

Mid-Atlantic

Middle TN

Houston

Wealth /

Investments

Municipals

(FTN

Financial)

Rise in interest rates represents cumulative growth rate in net interest income over a 3 year strategic time horizon.

Chart illustrates a quantified path to long-term goals; it contains no forecasts. ROTCE ranges updated from prior presentation to reflect updated tax rate.

0.5% to 1.0%

1.0% to 1.5%

1.0% to 2.5%

3.00% to 3.75%

ADR at

$1.0-$1.5mm

Increased

Capital

Markets

Activity

Building a Foundation for Attractive Long-Term Earnings Power

Proven execution capabilities

Unique size, scope, and strengths

Focused

efficiency,

productivity,

economic

profitability,

and

growth

opportunities

Organizational alignment on the path to achieving long-term bonefish profitability

Breadth and depth of talent that will be able to profitably run and grow the company

Successfully Executing on Key Priorities

FHN Is Well Positioned For Attractive Long-Term Earnings Power

APPENDIX

3Q14 Credit Quality Summary by Portfolio

($ in millions)

CRE

HE &

HELOC

Other

Total

Permanent

Mortgage

Commercial

(C&I & Other)

CRE

HE &

HELOC

Permanent

Mortgage

Other

Period End Loans

$8,022

$1,274

$3,356

$351

$13,002

$147

$456

$1,775

$415

$12

30+ Delinquency

0.09%

0.33%

0.61%

1.49%

0.29%

2.24%

0.23%

0.00%

1.84%

2.88%

2.24%

Dollars

$21

$37

$33

$12

NPL %

0.37%

1.04%

0.83%

0.15%

0.54%

2.65%

2.64%

20.01%

5.40%

7.13%

5.38%

Dollars

$29

$13

$28

$71

$12

$96

$30

Net Charge-offs

0.49%

0.39%

3.01%

0.19%

0.98%

0.29%

6.74%

Dollars

-$1

Allowance

$65

$15

$33

$14

$128

$85

$20

Allowance / Loans %

0.81%

1.18%

0.99%

4.07%

0.98%

1.01%

9.36%

4.79%

4.84%

4.48%

Allowance / Charge-offs

2.46x

2.55x

1.36x

5.26x

4.76x

16.57x

0.63x

Regional Banking

Corporate

Non-Strategic

Commercial

(C&I & Other)

Numbers may not add to total due to rounding. Data as of 3Q14. NM: Not meaningful.

Credit card, Permanent Mortgage, and Other. ²Credit 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 CRE Portfolio Detail

$2.0B

$8.5B C&I portfolio, diversified by industry, managed

primarily in Regional Banking

$1.3B CRE portfolio, comprising 8% of period-end total

loans

Commercial (C&I and CRE) net charge-offs were zero for

the quarter

Charge-offs were $5mm with recoveries of $5mm

Data as of 3Q14. Numbers may not add to total due to rounding.

CRE: Loan Type

CRE: Collateral Type

C&I: Loans to Mortgage Companies

Land 5%

Construction

26%

Mini-

Perm/Non-

Construction

69%

Retail

21%

Multi-Family

32%

Office

15%

Industrial

12%

Land

Other

Hospitality

$0.0

$0.4

$0.8

3Q13

4Q13

1Q14

2Q14

3Q14

Period End

Average

Home Equity Overview

Data as of 3Q14. Numbers may not add to total due to rounding.

$2.5B

HELOC Draw vs Repayment Balances

Percent of Portfolio: Months Left in Draw Period

Portfolio Characteristics

Geographic Distribution

First

Second

Total

Balance

$2.8B

$2.3B

$5.1B

Original FICO

752

735

743

Refreshed FICO

752

723

736

Original CLTV

76%

81%

78%

Full Doc

92%

74%

83%

Owner Occupied

92%

95%

94%

HELOCs

$0.7B

$1.9B

$2.6B

Weighted Average

HELOC Utilization

47%

58%

55%

20%

16%

18%

10%

30%

10%

15%

20%

25%

30%

35%

0-12

13-24

25-36

37-48

49-60

>60

$1.9

$0.7

$0.0

$0.5

$1.0

$1.5

$2.0

In Draw

In Repayment

Core

Banking

Customers

58%

Other

28%

Wind-down of Non-Strategic on track with reduced balances and stable credit quality

Positive marks on loan sales of $315mm UPB

Recognized a valuation gain of ~$8mm in 2Q14 and ~$40mm in 3Q14

Non-Strategic comprised less than 18% of total average loans in 3Q14, down from 21% in 3Q13

Non-Strategic Revenue Components

Non-Strategic loan

portfolio includes

floating rate loans

of 72% vs fixed

rate loans of 28%

Primarily gains on

sales of held-for-sale

mortgage loans

3Q14

Total

Revenue:

$55mm

Non-Strategic Consumer Real Estate Run-Off

$2.5B

Non-Strategic Update

Data as of 3Q14. Numbers may not add to total due to rounding.

18%

19%

21%

16%

17%

18%

19%

20%

21%

22%

$0.0

$0.5

$1.0

$1.5

$2.0

3Q13

4Q13

1Q14

2Q14

3Q14

Period End Balance

Constant Pre-Payment Rate (Right Axis)

NII

$15

Fee

Income

$40

Agency & Non-Agency Update

Repurchase Resolution Agreements with Both GSEs

Total

Pipeline

Repurchase

Requests

Mortgage Repurchase Reserve

($ in millions)

Beginning Balance

Net Realized Losses

Ending Balance

Provision

4Q13

$294

$(98)

$165

$(30)

1Q14

$165

$(20)

$145

2Q14

$145

$(4)

$141

3Q13

$123

$(29)

$294

$200

Other Whole Loan Sales and Non-Agency

Represent 38% of all active repurchase/make whole

requests in 3Q14 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

Non-Agency HUD/FHA Investigation

HUD and US DOJ are investigating FHA insurance claims on

insured loans originated by FHN; initial period covers 1/1/06

through

3/31/12

From 1/1/06 through 8/31/08 FHN originated ~48,000 loans

with original UPB of ~$8.2B

FHA originations declined substantially after FHN’s mortgage

business divestiture on 8/31/08

HUD has reviewed a small sample of loans from the covered

period, and its investigation remains incomplete

HUD and DOJ could seek up to treble and special damages under

the False Claims Act and other laws

Discussions are expected to continue, FHN does not have the

ability now to estimate a range of reasonably possible losses

3Q14

$141

$(13)

$126

$(4)

Loan Sales

$200

$400

$600mm

3Q13

4Q13

1Q14

2Q14

3Q14

GSE New Requests

Other New Requests

Resolved

Pipeline

Numbers may not add to total due to rounding. Data as of 3Q14. ¹Based 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. 4Q13, 1Q14, 2Q14, and 3Q14 resolutions include $128mm, $14mm, $6.5mm, and $12mm in other claims,

respectively, that pose no risk to the repurchase reserve but require formal acknowledgment with Fannie. ²FHA insurance claims made after 3/31/12 will be added to investigation.

FH Proprietary Securitizations Litigation

Certificate Breakdown

$554mm

Paid Off

57%

Performing UPB

31%

60D+ Delinquent

Cumulative Loss 6%

($ in millions)

Deal

FHASI 2005-AR5

(Schwab)

Senior

$30.0

$19.3

$10.7

$10.0

$0.7

FHASI 2007-AR2

(Schwab)

Senior

$50.0

$32.6

$15.1

$13.5

$1.6

$2.3

FHAMS 2006-FA6

(FDIC Alabama)

Senior

$11.1

$3.0

$6.9

$5.7

$1.2

FHAMS 2006-FA6

(FDIC Alabama)

Senior

$15.2

$4.6

$9.5

$7.7

$1.8

$1.2

FHAMS 2006-FA7

(FDIC Alabama)

Senior

$20.7

$6.3

$12.0

$10.0

$2.0

$2.4

FHAMS 2007-FA4

(FDIC Alabama)

Senior

$14.4

$3.5

$9.1

$7.4

$1.8

$1.7

FHAMS 2007-FA1

(FDIC New York)

Senior

$44.5

$13.2

$25.7

$20.9

$4.8

$5.5

FHAMS 2007-FA2

(FDIC New York)

Senior

$34.9

$11.5

$19.1

$15.6

$3.5

$4.3

FHAMS 2005-FA8

(FHLB Indemnification)

Senior

$100.0

$77.5

$22.3

$19.1

$3.2

$0.3

FHAMS 2007-FA3

(MetLife Indemnification)

Senior

$103.0

$59.5

$35.7

$29.6

$6.1

$7.9

FHAMS 2005-FA10

(Royal Park Indemnification)

Senior

$100.0

$64.2

$32.5

$27.2

$5.2

$3.4

FHAMS 2006-FA2

(Royal Park Indemnification)

Senior

$30.0

$23.1

$5.8

$4.9

$0.9

$1.1

Total

$553.7

$318.3

$204.3

$171.4

$32.8

$31.2

Cumulative

Loss

Certificate

Original

UPB

Paid

Off

Current

UPB

Performing

UPB

60D+

Delinquent

$0.0

Numbers and percentages may not add to total due to rounding. Data source: September 2014 Trustee Reports. ¹The 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. ²Royal Park is asking for

indemnification on $100mm of the $190mm tranche as stated in the indemnification request. ³60D+ Delinquent defined as a delinquency status of 60 days or more and also bankruptcies, foreclosures

LLC case in the Circuit Court for the City of Richmond (No. CL14-399). FHN does not know which certificate(s) the plaintiff allegedly purchased in whole or part.

and REO in such status for 60 days or more.

Excluded from this table is FHAMS 2005-FA9, which is the subject of an indemnification claim related to the Commonwealth of Virginia ex rel. Integra REC

Reconciliation to GAAP Financials

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

interest,

average

common

equity,

intangibles,

and

various

ratios

using

those

measures.

That

information

not

presented

according

generally

accepted

accounting

principles

(GAAP)

and

reconciled

GAAP

information

below.

Numbers may not add to total due to rounding.

3Q14 FHN consolidated and all quarters for Non-Strategic estimated by applying risk based capital regulations to period end assets.

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

Calculated by multiplying the quarterly consolidated Tier 1 Common ratio to the Non-Strategic risk weighted assets estimate. The 3Q14 Tier 1 Common ratio is an estimate.

Peer group includes UBSI, ONB, TRMK, IBKC, BXS, UMBF, BOH, VLY, FULT, FCNCA, WTFC, TCB, SUSQ, HBHC, WBS, CBSH, CFR,

ASBC, SNV, BOKF, FNFG. Peer data is as of 2Q14.

($ in millions)

3Q14

2Q14

1Q14

4Q13

Core Businesses Return On Tangible Common Equity

Total

FHN

Risk

Weighted

Assets

(Regulatory

GAAP)

$19,354

$19,400

$18,695

$18,879

Less:

Non-Strategic

Risk

Weighted

Assets

Estimate

(Regulatory

Non-GAAP)

$2,490

$2,719

$2,848

$3,268

Total Core Businesses Risk Weighted Assets Estimate (Non-GAAP)

$16,865

$16,681

$15,847

$15,610

Total FHN Average Tangible Common Equity (Non-GAAP)

$2,090

$2,016

$1,982

$1,919

Less:

Non-Strategic

Allocated

Tangible

Common

Equity

the

Tier

Common

Ratio

(Non-GAAP)

$282

$303

$316

$351

Total Core Businesses Average Tangible Common Equity (Non-GAAP)

$1,808

$1,712

$1,666

$1,567

FHN Net Income Available to Common (GAAP)

$45

$77

$45

$49

Core Businesses Net Income Available to Common (Non-GAAP)

$41

$70

$33

$43

FHN Annualized Return on Tangible Common Equity (Non-GAAP)

8.60%

15.28%

9.18%

10.22%

Core Businesses Annualized Return on Tangible Common Equity (Non-GAAP)

8.89%

16.33%

7.99%

10.96%

Core Businesses Net Income Available to Common

Corporate Net Income (GAAP)

-$9

-$4

-$2

Less: Corporate Non-Controlling Interest (GAAP)

Less: Corporate Preferred Stock Dividends (GAAP)

Corporate Net Income Available to Common (GAAP)

-$14

-$8

-$7

Regional Banking Net Income (GAAP)

$51

$47

$36

$43

Capital Markets Net Income (GAAP)

$31

Core

Businesses

Net

Income

Available

Common

(Non-GAAP)

$41

$70

$33

$43

Reconciliation to GAAP Financials

Slides in this presentation use non-GAAP information of net interest income, FTE adjustments, earning assets, and 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.

All else equal, a 200bps rate shock results in ~$63mm increase in Core Businesses annual NII (see slide 13), as Non-Strategic is interest rate neutral.

Net Interest Margin

3Q14

2Q14

1Q14

4Q13

3Q13

Regional Banking Net interest income (GAAP)

$154

$149

$142

$146

$150

Regional Banking FTE adjustment

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

$156

$151

$144

$148

$151

Capital Markets Net interest income (GAAP)

Capital Markets FTE adjustment

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

Corporate Net interest income (GAAP)

-$13

-$11

-$9

-$10

-$12

Corporate FTE adjustment

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

-$12

-$11

-$9

-$10

-$12

Core Businesses Net interest income (Non-GAAP)

$144

$141

$136

$140

$142

Core Businesses FTE adjustment (Non-GAAP)

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

$147

$143

$138

$142

$144

Non-Strategic Net interest income (GAAP)

$15

$16

$17

Non-Strategic FTE adjustment

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

$15

$16

$17

Consolidated Net interest income (GAAP)

$160

$157

$152

$157

$159

Consolidated FTE adjustment

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

$162

$159

$154

$159

$161

Average Earning Assets

3Q14

Regional Banking Earning Assets (GAAP)

$12,949

Capital Markets Earning Assets (GAAP)

$1,702

Corporate Earning Assets (GAAP)

$3,999

Core Businesses Earning Assets (Non-GAAP)¹

$18,649

Non-Strategic Earning Assets (GAAP)

$3,037

Consolidated Earning Assets (GAAP)

$21,687

Core Businesses NIM with 200bps Rate Shock

3Q14

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

$582

Core Businesses Average Earning Assets (Non-GAAP)

$18,649

Core Businesses NIM (Non-GAAP)

a/b

3.13%

Core Businesses Additional Annual NII from a 200bps Rate Shock (Non-GAAP)²

$63

Core Businesses NIM with 200bps Rate Shock (Non-GAAP)

(a+c)/b

3.46%

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

$643

Consolidated Average Earning Assets (GAAP)

$21,687

Consolidated NIM (GAAP)

d/e

2.97%

Consolidated Additional Annual NII from a 200bps Rate Shock (Non-GAAP)²

$63

Consolidated NIM with 200bps Rate Shock (Non-GAAP)

(d+f)/e

3.25%

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

Numbers may not add to total due to rounding.

($ in millions)

Reconciliation to GAAP Financials

Slides in this presentation use non-GAAP information of equity, assets, tier 1 capital, risk weighted assets, and various ratios using

one

those

measures.

That

information

not

presented

according

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.

Average of quarters 4Q13-3Q14.

($ in millions)

3Q14

2Q14

1Q14

4Q13

3Q13

Average

Tangible Common Equity (Non-GAAP)

Total equity (GAAP)

$2,622

$2,626

$2,544

$2,501

$2,433

Less: Noncontrolling interest

$295

Less: Preferred stock

$96

Total common equity

$2,231

$2,235

$2,153

$2,110

$2,042

Less: intangible assets (GAAP)

$161

$162

$163

$164

$163

Tangible common equity (Non-GAAP)

$2,070

$2,073

$1,990

$1,946

$1,880

Less: unrealized gains on AFS securities, net of tax

$16

-$2

-$11

$11

Adjusted tangible common equity (Non-GAAP)

$2,066

$2,058

$1,992

$1,957

$1,868

Tangible Assets (Non-GAAP)

Total assets (GAAP)

$23,987

$24,223

$23,942

$23,790

$23,859

Less: intangible assets (GAAP)

$161

$162

$163

$164

$163

Tangible assets (Non-GAAP)

$23,826

$24,061

$23,779

$23,626

$23,696

Tier 1 Common (Non-GAAP)

Tier 1 capital²

$2,780

$2,752

$2,666

$2,619

$2,555

Less:

noncontrolling

interest

FTBNA

preferred

stock

$295

Less: Preferred stock

$96

Less: trust preferred

$200

Tier 1 common (Non-GAAP)²

$2,190

$2,161

$2,076

$2,029

$1,965

Risk Weighted Assets

Risk weighted assets²

$19,354

$19,400

$18,695

$18,879

$19,237

Ratios

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

8.69%

8.62%

8.37%

8.24%

7.93%

8.48%

Total equity to total assets (GAAP)

10.93%

10.84%

10.63%

10.51%

10.20%

10.73%

Tier 1 common ratio to risk weighted assets (Non-GAAP)²

11.31%

11.14%

11.10%

10.75%

10.21%

11.08%

Tier 1 capital to total assets (GAAP)²

11.59%

11.36%

11.14%

11.01%

10.71%

11.27%

Tangible common equity to risk weighted assets (TCE/RWA) (Non-GAAP)²

10.69%

10.65%

10.31%

9.77%

10.58%

Tangible common equity plus reserves to risk weighted assets (Non-GAAP)²

11.93%

11.94%

11.97%

11.65%

11.10%

11.87%

Total equity plus reserves to total assets (GAAP)

11.93%

11.85%

11.66%

11.58%

11.27%

11.75%

Slides in this presentation use non-GAAP information of expense, revenue, repurchase provision, 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.

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

Reconciliation to GAAP Financials

($ in millions)

3Q14

2Q14

3Q13

Regional Banking Pre-Provison Net Revenue

Regional Banking Total Revenue (GAAP)

$218

$215

$213

Regional Banking Total Expense (GAAP)

$136

$134

$132

Regional Banking Pre-Provision Net Revenue (Non-GAAP)

$82

$81

Core Businesses Expense

Regional Banking Expense (GAAP)

$136

$134

$132

Capital Markets Expense (GAAP)

$48

$58

Corporate Expense (GAAP)

$19

$16

$22

Core Businesses' Expense¹ (Non-GAAP)

$203

$149

$212

Non-Strategic Expense (GAAP)

$43

$16

$222

Consolidated Expense (GAAP)

$246

$165

$434

Adjusted Capital Markets Expense

Capital Markets Noninterest Expense (GAAP)

$48

$58

Less: Sentinel Expense Recovery (GAAP)

$47

Adjusted Capital Markets Noninterest Expense (Non-GAAP)

$48

$47

$58

2014

2011

$101

$321

($47)

$37

$148

$284

$197

$284

Adjusted Consolidated Noninterest Expense

3Q14

3Q13

3Q12

3Q11

3Q13

3Q11

Consolidated Noninterest Expense (GAAP)

$246

$434

$263

$323

-43%

-24%

Less: Mortgage Repurchase Provision (GAAP)

($4)

$200

$53

Less: Legal Expense Accrual (GAAP)

$35

Adjusted Consolidated Noninterest expense (Non-GAAP)

$215

$234

$256

$270

-8%

-20%

Adjusted Annualized Noninterest Expense (Non-GAAP)

$860

$934

$1,026

$1,080

3Q14 Changes vs

Adjusted Capital Markets Annualized Noninterest Expense

Capital Markets Noninterest Expense (GAAP)

Sentinel Noninterest Expense/(Recovery) (GAAP)

Adjusted Capital Markets Noninterest Expense (Non-GAAP)

Adjusted Annualized Capital Markets Noninterest Expense (Non-GAAP)

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