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

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8-K - FIRST HORIZON CORP	c84693_8k.htm

Exhibit 99.1

FIRST QUARTER 2016

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
		Fixed Income 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 forward-looking statements or to publicly announce the result of any revisions to any of the forward-looking statements to reflect future events or developments.

Use of Non-GAAP Measures and Regulatory Measures that are not GAAP

Certain measures are included in this financial supplement that are “non-GAAP,” meaning (under U.S. financial reporting rules) they are not presented in accordance with generally accepted accounting principles (“GAAP”) in the U.S. and also are not codified in U.S. banking regulations currently applicable to FHN. Although other entities may use calculation methods that differ from those used by FHN for non-GAAP measures, FHN’s management believes such measures are relevant to understanding the capital position or financial results of FHN. Non-GAAP measures are reported to FHN’s management and Board of Directors through various internal reports.

Presentation of regulatory measures, even those which are not GAAP, provides a meaningful base for comparability to other financial institutions subject to the same regulations as FHN, as demonstrated by their use by the various banking regulators in reviewing the capital adequacy of financial institutions. Although not GAAP terms, these regulatory measures are not considered “non-GAAP” under U.S. financial reporting rules as long as their presentation conforms to regulatory standards. Regulatory measures used in this financial supplement include: tier 1 capital, generally defined as the sum of core capital (including common equity and instruments that cannot be redeemed at the option of the holder) adjusted for certain items under risk based capital regulations; common equity tier 1 capital, generally defined as common equity less goodwill, other intangibles, and certain other required regulatory deductions; risk weighted assets (“RWA”), which is a measure of total on- and off-balance sheet assets adjusted for credit and market risk, used to determine regulatory capital ratios; and pre-provision net revenue (“PPNR”), calculated by adding the provision/(provision credit) for loan losses to income before income taxes.

The non-GAAP measures presented in this financial supplement are return on average tangible common equity (“ROTCE”), tangible common equity (“TCE”) to tangible assets (“TA”), and tangible book value per common share.

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

FHN PERFORMANCE HIGHLIGHTS

First Quarter 2016 Notable Item

	Segment	Item	Income Statement	Amount	Comments

·	Regional Bank	Branch impairment expense	Noninterest expense: Other	$3.7 million	Pre-tax write-down of the book value of certain branches being exited in the future

First Quarter 2016 vs. Fourth Quarter 2015

Consolidated

Net income available to common shareholders was $47.8 million, or $.20 per diluted share in first quarter, compared to $47.0 million, or $.20 per diluted share in fourth quarter

Net Interest Income (“NII”) increased to $172.1 million in first quarter from $166.7 million in fourth quarter; Net Interest Margin (“NIM”) increased to 2.88 percent in first quarter from 2.82 percent in prior quarter

NII was favorably impacted by the December Fed rate increase, loan growth within the regional bank, and a decline in long-term funding costs associated with lower rates and the pre-funding in October of $500 million of senior notes due in December 2015

Lower trading securities inventory balances, fewer days in first quarter relative to the prior quarter, a decline in the dividend rate of FHN’s holdings of Federal Reserve Stock, and the continuing wind down of the non-strategic loan portfolios negatively impacted NII in first quarter

The increase in NIM was largely the result of the Fed rate increase and the favorable impact of a decline in long-term funding costs

Noninterest income (including securities gains) increased to $134.3 million in first quarter from $132.2 million in prior quarter

The increase was primarily driven by increased Fixed income revenue partially offset by a seasonal decline in deposit fee income

Noninterest expense decreased to $226.9 million in first quarter from $243.7 million in fourth quarter

The decrease was primarily the result of a decline in litigation accruals relative to fourth quarter

Period-end loans were $17.6 billion and $17.7 billion in first quarter and fourth quarter, respectively; average loans increased 2 percent to $17.3 billion in first quarter

Period-end core deposits were $19.8 billion and $19.5 billion in first and fourth quarter, respectively; average core deposits increased 2 percent linked quarter to $19.4 billion in first quarter

Regional Banking

	·	Pre-tax income was $71.5 million in first quarter compared to $78.8 million in fourth quarter; pre-provision net revenue was $86.2 million and $84.7 million in first and fourth quarters, respectively
	·	Average loans increased 3 percent to $15.2 billion in first quarter primarily driven by increases in the commercial loan portfolios; Period-end loans were flat in first quarter at $15.6 billion
	·	Average core deposits increased to $17.6 billion in first quarter from $17.4 billion in fourth quarter; period-end core deposits increased 2 percent to $18.0 billion in first quarter

Increase in average and period-end core deposits was largely driven by a seasonal increase in public funds

NII increased to $172.3 million in first quarter from $169.6 million in fourth quarter; NIM decreased 1 basis point to 4.60 percent in first quarter

The increase in NII was the result of higher average balances of commercial loans coupled with higher earnings credit as a result of an increase in average deposits. The increase in short-term market rates, combined with slower deposit repricing, were also favorable to NII, but were partially offset by the effect of fewer days in the quarter relative to the prior quarter

Provision expense was $14.8 million in first quarter compared to $5.9 million in the prior quarter

First quarter provision was primarily driven by the deterioration of a few credits combined with moderation of commercial upgrades

Noninterest income was $59.3 million in first quarter compared to $62.6 million in fourth quarter

Decrease primarily driven by lower deposit fee income relative to the prior quarter primarily due to seasonality in non-sufficient funds (“NSF”) fee structure

Noninterest expense decreased to $145.4 million in first quarter from $147.6 million in fourth quarter

The expense decline was driven by a number of factors including lower pension and advertising expenses relative to the prior quarter, as well as several small adjustments that negatively impacted fourth quarter expenses, somewhat offset by a $3.1 million increase in impairment expense associated with future branch closures

Fixed Income

Pre-tax income was $11.1 million in first quarter compared to $11.3 million in fourth quarter

Fixed income product revenue was $57.6 million in first quarter up from $52.7 million in prior quarter

Fixed income product average daily revenue (“ADR”) increased to $944 thousand in first quarter from $850 thousand in fourth quarter

Noninterest expense increased to $58.7 million in first quarter from $54.6 million in the prior quarter

The increase was primarily due to an increase in variable compensation costs and the seasonal first quarter FICA reset

Corporate

Pre-tax loss was $22.1 million in first quarter compared to pre-tax loss of $31.4 million in prior quarter

NII was negative $14.4 million and negative $19.2 million in first and fourth quarter, respectively

Estimated effective duration of the securities portfolio was 3.0 years in first quarter compared to 3.8 years in fourth quarter

Estimated modified duration of the securities portfolio was 4.2 years in first quarter compared to 4.5 years in fourth quarter

Noninterest income (including securities gains) was $5.7 million in first quarter compared to $5.5 million in fourth quarter

Noninterest expense was $13.5 million in first quarter compared to $17.7 million in fourth quarter

The expense decline was largely attributable to a $2.8 million impairment of a tax credit investment recognized in fourth quarter and a $2.4 million decline in acquisition costs related to TrustAtlantic, partially offset by an increase in expenses associated with community reinvestment initiatives

FHN PERFORMANCE HIGHLIGHTS (continued)

First Quarter 2016 vs. Fourth Quarter 2015 (continued)

Non-Strategic

Pre-tax income was $16.0 million in first quarter compared to pre-tax loss of $4.5 million in fourth quarter

NII was $11.5 million in first quarter compared to $12.4 million in prior quarter

The non-strategic segment had a provision credit of $11.8 million in first quarter compared to a provision credit of $4.9 million in fourth quarter

The provision continues to reflect improved performance combined with declining balances within the legacy portfolio

Noninterest expense decreased to $9.4 million in first quarter from $23.9 million in prior quarter primarily driven by a $14.7 million net decrease in litigation accruals related to legal matters recognized in fourth quarter

Asset Quality

Allowance for loan losses declined to $204.0 million in first quarter from $210.2 million in fourth quarter; the allowance to loans ratio was 116 basis points in first quarter compared to 119 basis points in fourth quarter

Reserves for the consumer portfolio declined by $13.9 million which more than offset an increase in commercial reserves

Net charge-offs (“NCOs”) were $9.2 million in first quarter compared to $1.6 million in fourth quarter; annualized net charge-offs increased to 21 basis points of average loans in first quarter from 4 basis points in prior quarter

The regional bank had net charge-offs of $9.3 million in first quarter compared to net recoveries of $2.8 million in fourth quarter

4Q15 included a single recovery within C&I of $6.4 million and 1Q16 included $5.7 million of net charge-offs, largely driven by one energy-related credit

Non-strategic had a small net recovery in first quarter compared to $4.4 million of net charge-offs in fourth quarter. Fourth quarter net charge-offs were driven by a loss on the disposition of a TRUP loan

Nonperforming loans (“NPLs”), excluding loans held-for-sale, increased to $193.6 million in the first quarter from $179.1 million in the fourth quarter; a majority of the increase is within regional bank C&I and is driven by a couple of credits

Nonperforming assets (“NPAs”), excluding loans held-for-sale, were $211.0 million compared to $204.1 million; the rise was due to an increase in nonperforming loans partially offset by declines in foreclosed assets

30+ delinquencies as a percentage of total loans was 54 basis points in first quarter compared to 42 basis points in fourth quarter

The linked-quarter increase was primarily driven by regional bank C&I but over half are expected to be favorably resolved in early second quarter

Troubled debt restructurings (“TDRs”) decreased to $365.4 million in first quarter from $367.7 million in prior quarter

Taxes

The effective tax rates (“ETR”) for first and fourth quarters were 31.71 percent and 5.01 percent, respectively. The first and fourth quarter rates were favorably affected by $0.2 million and $3.1 million in discrete items, respectively. The increase in the effective tax rate from fourth quarter was primarily related to higher projected pre-tax income in 2016 relative to the prior year

The rates reflect the favorable effect from permanent benefits. Permanent benefits primarily consist of tax credit investments, life insurance, tax-exempt interest, and the utilization of the capital loss carryover

Capital and Liquidity

Declared $.07 per common share quarterly dividend in first quarter resulting in an aggregate of $16.2 million which was paid on April 1, 2016, an increase of 17 percent over the $.06 per common share declared in fourth quarter

Declared aggregate preferred quarterly dividend of $1.6 million in first quarter which was paid on April 11, 2016

Repurchased shares costing $75.0 million in first quarter; $58.2 million remaining authorization under the current share repurchase program at March 31, 2016

Cumulative shares repurchased since October 2011 are $404.6 million with a volume weighted average price of $10.21 per share (before $.02 per share broker commission)

Capital ratios (regulatory capital ratios calculated under the Basel III risk-based capital rules as phased-in; current quarter is an estimate)

	·	Tangible common equity to tangible assets of 7.61 percent in first quarter compared to 7.82 percent in prior quarter
	·	Common Equity Tier 1 of 10.35 percent in first quarter compared to 10.45 percent in prior quarter
	·	Tier 1 of 11.58 percent in first quarter compared to 11.79 percent in prior quarter
	·	Total Capital of 12.75 percent in first quarter compared to 13.01 percent in prior quarter
	·	Leverage of 9.40 percent in first quarter compared to 9.85 percent in prior quarter

FHN CONSOLIDATED INCOME STATEMENT

Quarterly, Unaudited

																1Q16 Changes vs.
(Dollars in thousands, except per share data)	1Q16			4Q15			3Q15			2Q15			1Q15			4Q15			1Q15

Interest income		$193,664			$187,620			$183,687			$187,030			$178,068			3	%		9	%
Less: interest expense		21,590			20,968			20,125			20,390			21,202			3	%		2	%
Net interest income		172,074			166,652			163,562			166,640			156,866			3	%		10	%
Provision for loan losses		3,000			1,000			1,000			2,000			5,000			NM			(40	)%
Net interest income after provision for loan losses		169,074			165,652			162,562			164,640			151,866			2	%		11	%
Noninterest income:
Fixed income		66,977			61,673			51,804			56,241			61,619			9	%		9	%
Deposit transactions and cash management		26,837			28,951			28,911			28,430			26,551			(7	)%		1	%
Brokerage, management fees and commissions		10,415			11,021			11,620			12,456			11,399			(5	)%		(9	)%
Trust services and investment management		6,565			6,873			6,590			7,416			6,698			(4	)%		(2	)%
Bankcard income		5,259			5,607			5,561			5,884			5,186			(6	)%		1	%
Bank-owned life insurance		3,389			3,738			4,135			3,391			3,462			(9	)%		(2	)%
Other service charges		2,713			2,751			2,968			3,043			2,848			(1	)%		(5	)%
Insurance commissions		487			769			608			654			596			(37	)%		(18	)%
Securities gains/(losses), net		1,574			1,439			(345	)		8			276			9	%		NM
Other (a)		10,089			9,410			13,251			12,778			11,054			7	%		(9	)%
Total noninterest income		134,305			132,232			125,103			130,301			129,689			2	%		4	%
Adjusted gross income after provision for loan losses		303,379			297,884			287,665			294,941			281,555			2	%		8	%
Noninterest expense:
Employee compensation, incentives, and benefits (b)		137,151			136,000			116,219			127,970			131,444			1	%		4	%
Legal fees		4,879			4,601			3,626			4,509			3,551			6	%		37	%
Professional fees		5,199			4,859			5,139			5,218			3,706			7	%		40	%
Occupancy		12,604			13,853			13,282			11,764			12,218			(9	)%		3	%
Computer software		11,587			11,432			11,010			11,340			10,942			1	%		6	%
Contract employment and outsourcing		2,425			3,159			3,414			3,337			4,584			(23	)%		(47	)%
Operations services		9,900			9,761			10,130			10,033			9,337			1	%		6	%
Equipment rentals, depreciation, and maintenance		6,159			8,568			7,093			7,983			7,220			(28	)%		(15	)%
FDIC premium expense		4,921			5,098			4,529			4,952			3,448			(3	)%		43	%
Advertising and public relations		4,973			5,273			4,832			4,349			4,733			(6	)%		5	%
Communications and courier		3,750			4,089			4,054			3,801			3,876			(8	)%		(3	)%
Other insurance and taxes		3,313			2,874			3,283			3,455			3,329			15	%		*
Foreclosed real estate		(258	)		475			431			1,329			(131	)		NM			(97	)%
Amortization of intangible assets		1,300			1,359			1,298			1,298			1,298			(4	)%		*
Other (a)		19,024			32,339			27,096			17,056			176,666			(41	)%		(89	)%
Total noninterest expense		226,927			243,740			215,436			218,394			376,221			(7	)%		(40	)%
Income/(loss) before income taxes		76,452			54,144			72,229			76,547			(94,666	)		41	%		NM
Provision/(benefit) for income taxes		24,239			2,715			8,897			21,590			(22,261	)		NM			NM
Net income/(loss)		52,213			51,429			63,332			54,957			(72,405	)		2	%		NM
Net income attributable to noncontrolling interest		2,851			2,848			2,977			2,851			2,758			*			3	%
Net income/(loss) attributable to controlling interest		49,362			48,581			60,355			52,106			(75,163	)		2	%		NM
Preferred stock dividends		1,550			1,550			1,550			1,550			1,550			*			*
Net income/(loss) available to common shareholders		$47,812			$47,031			$58,805			$50,556			$(76,713	)		2	%		NM
Common Stock Data
EPS		$0.20			$0.20			$0.25			$0.22			$(0.33	)		*			NM
Basic shares (thousands) (c)		234,651			237,983			233,111			232,800			232,816			(1	)%		1	%
Diluted EPS		$0.20			$0.20			$0.25			$0.22			$(0.33	)		*			NM
Diluted shares (thousands) (c)		236,666			240,072			235,058			234,669			232,816			(1	)%		2	%
Key Ratios & Other
Return on average assets (annualized) (d)		0.79	%		0.78	%		0.99	%		0.87	%		(1.15	)%
Return on average common equity (annualized) (d)		8.53	%		8.23	%		10.83	%		9.56	%		(14.04	)%
Return on average tangible common equity (annualized) (d) (e)		9.44	%		9.07	%		11.77	%		10.41	%		(15.24	)%
Fee income to total revenue (d)		43.55	%		43.97	%		43.41	%		43.88	%		45.21	%
Efficiency ratio (d)		74.45	%		81.94	%		74.54	%		73.55	%		NM
Full time equivalent employees		4,241			4,260			4,202			4,212			4,226

Certain previously reported amounts have been reclassified to agree with current presentation.
NM - Not meaningful
* Amount is less than one percent.
(a)	Refer to the Other Income and Other Expense table on page 7 for additional information.
(b)	3Q15 includes $8.3 million of gains associated with an employee benefit plan amendment.
(c)	1Q16 decrease related to shares repurchased under share repurchase programs; 4Q15 increase related to shares issued in connection with the TrustAtlantic acquisition, partially offset by shares purchased under share repurchase programs.
(d)	See Glossary of Terms for definitions of Key Ratios.
(e)	Refer to the Non-GAAP to GAAP reconciliation on page 22 of this financial supplement.

FHN OTHER INCOME AND OTHER EXPENSE

Quarterly, Unaudited

															1Q16 Changes vs.
(Thousands)	1Q16			4Q15			3Q15			2Q15			1Q15		4Q15			1Q15

Other Income
ATM and interchange fees		$2,958			$3,133			$2,998			$3,025			$2,761		(6	)%		7	%
Electronic banking fees		1,397			1,474			1,479			1,459			1,428		(5	)%		(2	)%
Letter of credit fees		1,061			988			978			1,532			1,123		7	%		(6	)%
Mortgage banking		1,273			1,149			761			376			1,584		11	%		(20	)%
Deferred compensation (a)		329			(58	)		(2,309	)		(35	)		1,033		NM			(68	)%
Gain/(loss) on extinguishment of debt (b)		-			(1	)		5,794			-			-		NM			NM
Other (c)		3,071			2,725			3,550			6,421			3,125		13	%		(2	)%
Total		$10,089			$9,410			$13,251			$12,778			$11,054		7	%		(9	)%


Other Expense
Litigation and regulatory matters (d)		$(475	)		$14,185			$10,922			$-			$162,500		NM			NM
Tax credit investments (e)		706			3,199			439			549			395		(78	)%		79	%
Travel and entertainment		2,062			2,893			2,451			2,632			1,614		(29	)%		28	%
Employee training and dues		1,390			1,537			1,272			1,449			1,132		(10	)%		23	%
Customer relations		1,879			1,086			1,477			1,505			1,314		73	%		43	%
Miscellaneous loan costs		717			835			726			734			361		(14	)%		99	%
Supplies		1,026			1,046			974			880			927		(2	)%		11	%
Other (f)		11,719			7,558			8,835			9,307			8,423		55	%		39	%
Total		$19,024			$32,339			$27,096			$17,056			$176,666		(41	)%		(89	)%

Certain previously reported amounts have been reclassified to agree with current presentation.
NM - Not meaningful
(a)	Amounts driven by market conditions and are mirrored by changes in deferred compensation expense which is included in employee compensation expense.
(b)	3Q15 gain related to the extinguishment of $206 million of junior subordinated notes underlying $200 million of trust preferred debt.
(c)	2Q15 includes $2.9 million of pre-tax gains on the sale of properties.
(d)	1Q15 loss accruals relate to the settlement of potential claims related to FHN’s underwriting and origination of FHA-insured mortgage loans.
(e)	4Q15 includes $2.8 million of impairment related to a tax credit investment accounted for under the equity method.
(f)	1Q16 includes $3.7 million of impairment related to future branch closures.

FHN CONSOLIDATED PERIOD-END BALANCE SHEET

Quarterly, Unaudited

																1Q16 Changes vs.
(Thousands)	1Q16			4Q15			3Q15			2Q15			1Q15			4Q15			1Q15

Assets:
Investment securities		$4,028,731			$3,944,166			$3,677,954			$3,653,166			$3,676,630			2	%		10	%
Loans held-for-sale		116,270			126,342			124,308			127,196			133,958			(8	)%		(13	)%
Loans, net of unearned income		17,574,994			17,686,502			16,725,492			16,936,772			16,732,123			(1	)%		5	%
Federal funds sold		34,061			114,479			64,438			77,039			43,052			(70	)%		(21	)%
Securities purchased under agreements to resell		767,483			615,773			793,098			816,991			831,541			25	%		(8	)%
Interest-bearing cash (a)		951,920			602,836			596,689			344,944			438,633			58	%		NM
Trading securities		1,226,521			881,450			1,229,180			1,133,490			1,532,463			39	%		(20	)%
Total earning assets		24,699,980			23,971,548			23,211,159			23,089,598			23,388,400			3	%		6	%
Cash and due from banks		280,625			300,811			256,342			274,256			282,800			(7	)%		(1	)%
Fixed income receivables (b)		114,854			63,660			83,547			91,069			190,662			80	%		(40	)%
Goodwill (c)		191,307			191,307			145,932			145,932			145,932			*			31	%
Other intangible assets, net (c)		24,915			26,215			25,624			26,922			28,220			(5	)%		(12	)%
Premises and equipment, net (d)		274,347			275,619			269,332			269,507			301,069			*			(9	)%
Real estate acquired by foreclosure		24,521			33,063			35,332			40,268			39,776			(26	)%		(38	)%
Allowance for loan losses		(204,034	)		(210,242	)		(210,814	)		(221,351	)		(228,328	)		(3	)%		(11	)%
Derivative assets		165,007			104,365			152,548			115,230			148,153			58	%		11	%
Other assets		1,392,160			1,436,291			1,417,071			1,405,961			1,416,635			(3	)%		(2	)%
Total assets		$26,963,682			$26,192,637			$25,386,073			$25,237,392			$25,713,319			3	%		5	%

Liabilities and Equity:
Deposits:
Savings		$7,921,344			$7,811,191			$7,554,338			$7,462,642			$7,428,000			1	%		7	%
Other interest-bearing deposits		5,371,864			5,388,526			4,885,601			4,675,742			4,939,240			*			9	%
Time deposits		763,897			788,487			743,158			769,132			792,914			(3	)%		(4	)%
Total interest-bearing core deposits		14,057,105			13,988,204			13,183,097			12,907,516			13,160,154			*			7	%
Noninterest-bearing deposits		5,717,195			5,535,885			5,391,385			5,366,936			5,060,897			3	%		13	%
Total core deposits (e)		19,774,300			19,524,089			18,574,482			18,274,452			18,221,051			1	%		9	%
Certificates of deposit $100,000 and more		553,534			443,389			290,738			400,021			417,503			25	%		33	%
Total deposits		20,327,834			19,967,478			18,865,220			18,674,473			18,638,554			2	%		9	%
Federal funds purchased		588,413			464,166			520,992			556,862			703,352			27	%		(16	)%
Securities sold under agreements to repurchase		425,217			338,133			332,329			311,760			309,297			26	%		37	%
Trading liabilities		738,653			566,019			788,563			732,564			813,141			30	%		(9	)%
Other short-term borrowings		96,723			137,861			99,887			150,350			158,745			(30	)%		(39	)%
Term borrowings (f)		1,323,749			1,312,677			1,339,940			1,555,272			1,570,646			1	%		(16	)%
Fixed income payables (b)		56,399			23,072			95,346			54,301			91,176			NM			(38	)%
Derivative liabilities		146,297			108,339			140,965			109,815			133,273			35	%		10	%
Other liabilities		617,449			635,306			622,586			574,090			795,878			(3	)%		(22	)%
Total liabilities		24,320,734			23,553,051			22,805,828			22,719,487			23,214,062			3	%		5	%
Equity:
Common stock (g)		145,342			149,117			146,398			146,263			145,937			(3	)%		*
Capital surplus (g)		1,371,397			1,439,303			1,377,731			1,371,712			1,370,711			(5	)%		*
Undivided profits		905,595			874,303			841,737			797,123			760,713			4	%		19	%
Accumulated other comprehensive loss, net		(170,441	)		(214,192	)		(176,676	)		(188,248	)		(169,159	)		(20	)%		1	%
Preferred stock		95,624			95,624			95,624			95,624			95,624			*			*
Noncontrolling interest (h)		295,431			295,431			295,431			295,431			295,431			*			*
Total equity		2,642,948			2,639,586			2,580,245			2,517,905			2,499,257			*			6	%
Total liabilities and equity		$26,963,682			$26,192,637			$25,386,073			$25,237,392			$25,713,319			3	%		5	%

Certain previously reported amounts have been reclassified to agree with current presentation.
NM - Not meaningful
* Amount is less than one percent.
(a)	Includes excess balances held at Fed.
(b)	Period-end balances fluctuate based on the level of pending unsettled trades.
(c)	4Q15 increase related to TrustAtlantic acquisition.
(d)	2Q15 decrease related to sale of property.
(e)	1Q16 average core deposits were $19.4 billion.
(f)	In 3Q15 FHN called $206 million of junior subordinated notes underlying $200 million of trust preferred debt.
(g)	1Q16 decrease related to shares repurchased under share repurchase programs; 4Q15 increase related to shares issued in connection with the TrustAtlantic acquisition, partially offset by shares purchased under share repurchase programs.
(h)	Consists of preferred stock of subsidiaries.

FHN CONSOLIDATED AVERAGE BALANCE SHEET

Quarterly, Unaudited

																1Q16 Changes vs.
(Thousands)	1Q16			4Q15			3Q15			2Q15			1Q15			4Q15			1Q15

Assets:
Earning assets:
Loans, net of unearned income:
Commercial, financial, and industrial (C&I)		$9,994,084			$9,720,115			$9,539,650			$9,675,107			$8,965,657			3	%		11	%
Commercial real estate		1,765,435			1,612,730			1,425,528			1,371,207			1,290,246			9	%		37	%
Consumer real estate		4,732,968			4,798,067			4,838,984			4,893,285			4,988,532			(1	)%		(5	)%
Permanent mortgage		447,800			455,299			475,684			500,093			526,616			(2	)%		(15	)%
Credit card and other		353,661			356,948			353,148			350,247			351,503			(1	)%		1	%
Total loans, net of unearned income (a)		17,293,948			16,943,159			16,632,994			16,789,939			16,122,554			2	%		7	%
Loans held-for-sale		122,146			122,046			126,072			129,519			138,373			*			(12	)%
Investment securities:
U.S. treasuries		100			100			100			100			100			*			*
U.S. government agencies		3,790,568			3,619,334			3,482,658			3,505,033			3,391,297			5	%		12	%
States and municipalities		5,823			8,881			13,673			14,074			14,410			(34	)%		(60	)%
Corporate bonds		10,000			1,522			-			-			-			NM			NM
Other		185,638			188,813			181,817			181,749			181,858			(2	)%		2	%
Total investment securities		3,992,129			3,818,650			3,678,248			3,700,956			3,587,665			5	%		11	%
Trading securities		1,142,215			1,307,102			1,137,877			1,363,165			1,371,514			(13	)%		(17	)%
Other earning assets:
Federal funds sold		25,454			19,832			35,191			31,765			23,710			28	%		7	%
Securities purchased under agreements to resell		817,963			804,000			762,744			760,338			777,989			2	%		5	%
Interest-bearing cash (b)		1,009,739			913,432			806,648			465,596			1,451,826			11	%		(30	)%
Total other earning assets		1,853,156			1,737,264			1,604,583			1,257,699			2,253,525			7	%		(18	)%
Total earning assets		24,403,594			23,928,221			23,179,774			23,241,278			23,473,631			2	%		4	%
Allowance for loan losses		(208,884	)		(208,804	)		(216,833	)		(227,765	)		(232,655	)		*			(10	)%
Cash and due from banks		316,467			320,147			308,409			315,730			342,512			(1	)%		(8	)%
Fixed income receivables		74,495			91,510			59,470			51,913			48,937			(19	)%		52	%
Premises and equipment, net (c)		275,764			273,365			268,061			292,874			301,989			1	%		(9	)%
Derivative assets		117,815			131,479			113,927			138,935			139,086			(10	)%		(15	)%
Other assets		1,639,443			1,639,256			1,600,095			1,598,613			1,568,434			*			5	%
Total assets		$26,618,694			$26,175,174			$25,312,903			$25,411,578			$25,641,934			2	%		4	%

Liabilities and equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Savings		$7,898,580			$7,589,314			$7,578,288			$7,437,016			$7,377,045			4	%		7	%
Other interest-bearing deposits		5,281,059			4,956,451			4,806,813			4,741,920			4,483,907			7	%		18	%
Time deposits		774,345			798,661			756,397			780,355			812,749			(3	)%		(5	)%
Total interest-bearing core deposits		13,953,984			13,344,426			13,141,498			12,959,291			12,673,701			5	%		10	%
Certificates of deposit $100,000 and more		511,975			389,682			354,376			405,696			423,480			31	%		21	%
Federal funds purchased		630,143			569,603			529,156			649,464			1,079,531			11	%		(42	)%
Securities sold under agreements to repurchase		445,964			337,893			330,114			339,874			474,448			32	%		(6	)%
Trading liabilities		758,739			768,721			722,031			713,133			728,553			(1	)%		4	%
Other short-term borrowings		112,498			128,740			138,698			227,650			165,408			(13	)%		(32	)%
Term borrowings (d)		1,310,370			1,583,213			1,459,315			1,568,483			1,619,313			(17	)%		(19	)%
Total interest-bearing liabilities		17,723,673			17,122,278			16,675,188			16,863,591			17,164,434			4	%		3	%
Noninterest-bearing deposits		5,470,855			5,627,935			5,392,294			5,189,939			5,098,361			(3	)%		7	%
Fixed income payables		53,004			52,034			26,220			27,608			34,800			2	%		52	%
Derivative liabilities		122,378			120,728			105,644			123,397			124,305			1	%		(2	)%
Other liabilities		604,410			592,624			568,013			695,114			612,513			2	%		(1	)%
Total liabilities		23,974,320			23,515,599			22,767,359			22,899,649			23,034,413			2	%		4	%
Equity:
Common stock (e)		147,287			149,401			146,324			146,146			146,225			(1	)%		1	%
Capital surplus (e)		1,405,996			1,443,988			1,374,195			1,370,653			1,377,178			(3	)%		2	%
Undivided profits		889,209			860,778			818,909			775,881			868,605			3	%		2	%
Accumulated other comprehensive loss, net		(189,173	)		(185,647	)		(184,939	)		(171,806	)		(175,542	)		2	%		8	%
Preferred stock		95,624			95,624			95,624			95,624			95,624			*			*
Noncontrolling interest (f)		295,431			295,431			295,431			295,431			295,431			*			*
Total equity		2,644,374			2,659,575			2,545,544			2,511,929			2,607,521			(1	)%		1	%
Total liabilities and equity		$26,618,694			$26,175,174			$25,312,903			$25,411,578			$25,641,934			2	%		4	%

Certain previously reported amounts have been reclassified to agree with current presentation.
* Amount is less than one percent.
(a)	Includes loans on nonaccrual status.
(b)	Includes excess balances held at Fed. 1Q15 driven by inflow of customer deposits and proceeds from the issuance of senior notes.
(c)	2Q15 and 3Q15 decreases related to sale of property in second quarter.
(d)	In 3Q15 FHN called $206 million of junior subordinated notes underlying $200 million of trust preferred debt.
(e)	1Q16 and 2Q15 decreases relate to shares repurchased under share repurchase programs; 4Q15 increase related to shares issued in connection with the TrustAtlantic acquisition, partially offset by shares purchased under share repurchase programs.
(f)	Consists of preferred stock of subsidiaries.

FHN CONSOLIDATED NET INTEREST INCOME (a)

Quarterly, Unaudited

																1Q16 Changes vs.
(Thousands)	1Q16			4Q15			3Q15			2Q15			1Q15			4Q15			1Q15

Interest Income:
Loans, net of unearned income (b)		$160,687			$154,959			$152,795			$155,565			$146,192			4	%		10	%
Loans held-for-sale		1,261			1,305			1,311			1,350			1,491			(3	)%		(15	)%
Investment securities:
U.S. government agencies		23,273			22,349			21,366			21,432			20,955			4	%		11	%
States and municipalities		97			129			97			97			125			(25	)%		(22	)%
Corporate bonds		131			19			-			-			-			NM			NM
Other		1,201			1,906			1,864			1,853			1,876			(37	)%		(36	)%
Total investment securities		24,702			24,403			23,327			23,382			22,956			1	%		8	%
Trading securities		8,185			9,360			8,476			9,289			9,281			(13	)%		(12	)%
Other earning assets:
Federal funds sold		80			56			88			79			57			43	%		40	%
Securities purchased under agreements to resell (c)		226			(277	)		(112	)		(254	)		(252	)		NM			NM
Interest-bearing cash		1,252			636			490			267			874			97	%		43	%
Total other earning assets		1,558			415			466			92			679			NM			NM
Interest income		$196,393			$190,442			$186,375			$189,678			$180,599			3	%		9	%

Interest Expense:
Interest-bearing deposits:
Savings		$4,190			$2,930			$2,785			$2,970			$3,307			43	%		27	%
Other interest-bearing deposits		2,304			1,312			1,118			1,104			957			76	%		NM
Time deposits		1,112			1,200			1,230			1,324			1,432			(7	)%		(22	)%
Total interest-bearing core deposits		7,606			5,442			5,133			5,398			5,696			40	%		34	%
Certificates of deposit $100,000 and more		1,211			1,013			756			830			882			20	%		37	%
Federal funds purchased		797			428			338			408			673			86	%		18	%
Securities sold under agreements to repurchase		59			46			32			42			95			28	%		(38	)%
Trading liabilities		4,039			4,034			4,258			3,770			3,914			*			3	%
Other short-term borrowings		272			262			294			276			278			4	%		(2	)%
Term borrowings		7,606			9,743			9,314			9,666			9,664			(22	)%		(21	)%
Interest expense		21,590			20,968			20,125			20,390			21,202			3	%		2	%
Net interest income - tax equivalent basis		174,803			169,474			166,250			169,288			159,397			3	%		10	%
Fully taxable equivalent adjustment		(2,729	)		(2,822	)		(2,688	)		(2,648	)		(2,531	)		3	%		(8	)%
Net interest income		$172,074			$166,652			$163,562			$166,640			$156,866			3	%		10	%

Certain previously reported amounts have 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)	Amounts in 2015 driven by negative market rates on reverse repurchase agreements.

FHN CONSOLIDATED AVERAGE BALANCE SHEET: YIELDS AND RATES

Quarterly, Unaudited


	1Q16		4Q15		3Q15		2Q15		1Q15

Assets:
Earning assets (a):
Loans, net of unearned income (b):
Commercial loans	3.58	%	3.46	%	3.50	%	3.60	%	3.50	%
Retail loans	4.07		3.98		3.94		3.94		3.96
Total loans, net of unearned income (c)	3.73		3.63		3.65		3.71		3.67
Loans held-for-sale	4.13		4.28		4.16		4.17		4.31
Investment securities:
U.S. government agencies	2.46		2.47		2.45		2.45		2.47
States and municipalities	6.70		5.81		2.84		2.77		3.46
Corporate bonds	5.25		4.98		-		-		-
Other	2.59		4.04		4.10		4.08		4.13
Total investment securities	2.48		2.56		2.54		2.53		2.56
Trading securities	2.87		2.86		2.98		2.73		2.71
Other earning assets:
Federal funds sold	1.26		1.12		1.00		1.00		0.97
Securities purchased under agreements to resell (d)	0.11		(0.14	)	(0.06	)	(0.13	)	(0.13	)
Interest-bearing cash	0.50		0.28		0.24		0.23		0.24
Total other earning assets	0.34		0.09		0.12		0.03		0.12
Interest income/total earning assets	3.23	%	3.17	%	3.20	%	3.27	%	3.11	%

Liabilities:
Interest-bearing liabilities:
Interest-bearing deposits:
Savings	0.21	%	0.15	%	0.15	%	0.16	%	0.18	%
Other interest-bearing deposits	0.18		0.10		0.09		0.09		0.09
Time deposits	0.58		0.60		0.65		0.68		0.71
Total interest-bearing core deposits	0.22		0.16		0.15		0.17		0.18
Certificates of deposit $100,000 and more	0.95		1.03		0.85		0.82		0.84
Federal funds purchased	0.51		0.30		0.25		0.25		0.25
Securities sold under agreements to repurchase	0.05		0.05		0.04		0.05		0.08
Trading liabilities	2.14		2.08		2.34		2.12		2.18
Other short-term borrowings	0.97		0.81		0.84		0.49		0.68
Term borrowings (e)	2.32		2.46		2.55		2.47		2.39
Interest expense/total interest-bearing liabilities	0.49		0.49		0.48		0.48		0.50
Net interest spread	2.74	%	2.68	%	2.72	%	2.79	%	2.61	%
Effect of interest-free sources used to fund earning assets	0.14		0.14		0.13		0.13		0.13
Net interest margin	2.88	%	2.82	%	2.85	%	2.92	%	2.74	%

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

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 loan fees and cash basis interest income.
(c)	Includes loans on nonaccrual status.
(d)	Amounts in 2015 driven by negative market rates on reverse repurchase agreements.
(e)	Rates are expressed net of unamortized debenture cost for term borrowings.

FHN CAPITAL HIGHLIGHTS

Quarterly, Unaudited

											1Q16 Changes vs.
(Dollars and shares in thousands)	1Q16		4Q15		3Q15		2Q15		1Q15		4Q15		1Q15

Common equity tier 1 capital (a) (c)	$2,226,581		$2,278,580		$2,226,189		$2,172,768		$2,133,554		(2	)%	4	%
Tier 1 capital (a) (b) (c)	$2,492,859		$2,572,141		$2,516,194		$2,500,612		$2,452,297		(3	)%	2	%
Total capital (a) (d)	$2,743,933		$2,836,715		$2,781,354		$2,922,582		$2,912,671		(3	)%	(6	)%

Risk-weighted assets (“RWA”) (a) (c)	$21,520,235		$21,812,015		$20,783,031		$20,869,862		$20,707,078		(1	)%	4	%
Average assets for leverage (a) (c)	$26,519,234		$26,109,449		$25,280,856		$25,347,048		$25,570,905		2	%	4	%

Common equity tier 1 ratio (a) (c)	10.35	%	10.45	%	10.71	%	10.41	%	10.30	%
Tier 1 ratio (a) (c)	11.58	%	11.79	%	12.11	%	11.98	%	11.84	%
Total capital ratio (a)	12.75	%	13.01	%	13.38	%	14.00	%	14.07	%
Leverage ratio (a) (c)	9.40	%	9.85	%	9.95	%	9.87	%	9.59	%

Total equity to total assets	9.80	%	10.08	%	10.16	%	9.98	%	9.72	%
Tangible common equity/tangible assets (“TCE/TA”) (e)	7.61	%	7.82	%	8.00	%	7.80	%	7.57	%
Period-end shares outstanding (f)	232,547		238,587		234,237		234,021		233,499		(3	)%	*
Cash dividends declared per common share	$0.07		$0.06		$0.06		$0.06		$0.06		17	%	17	%
Book value per common share	$9.68		$9.42		$9.35		$9.09		$9.03
Tangible book value per common share (e)	$8.75		$8.51		$8.61		$8.35		$8.28
Market capitalization (millions)	$3,046.4		$3,464.3		$3,321.5		$3,667.1		$3,336.7

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)	FHN’s outstanding trust preferred securities were redeemed in 3Q15. 2Q15 and 1Q15 include $50 million of Tier 1 qualifying trust preferred securities.
(c)	See Glossary of Terms for definition.
(d)	FHN’s outstanding trust preferred securities were redeemed in 3Q15. 2Q15 and 1Q15 include $150 million of Tier 2 qualifying trust preferred securities.
(e)	Refer to the Non-GAAP to GAAP reconciliation on page 22 of this financial supplement.
(f)	1Q16 decrease related to shares purchased under share repurchase programs; 4Q15 increase related to shares issued in connection with the TrustAtlantic acquisition, partially offset by shares purchased under share repurchase programs.

FHN BUSINESS SEGMENT HIGHLIGHTS

Quarterly, Unaudited

											1Q16 Changes vs.
(Thousands)	1Q16		4Q15		3Q15		2Q15		1Q15		4Q15		1Q15

Regional Banking
Net interest income	$172,326		$169,599		$165,257		$165,908		$154,412		2	%	12	%
Noninterest income	59,275		62,639		62,754		65,977		60,180		(5	)%	(2	)%
Total revenues	231,601		232,238		228,011		231,885		214,592		*		8	%
Provision for loan losses	14,767		5,856		6,696		17,078		4,915		NM		NM
Noninterest expense	145,355		147,581		135,626		144,000		135,444		(2	)%	7	%
Income before income taxes	71,479		78,801		85,689		70,807		74,233		(9	)%	(4	)%
Provision for income taxes	25,429		28,114		30,859		25,069		26,504		(10	)%	(4	)%
Net income	$46,050		$50,687		$54,830		$45,738		$47,729		(9	)%	(4	)%

Fixed Income
Net interest income	$2,664		$3,903		$3,007		$4,295		$4,319		(32	)%	(38	)%
Noninterest income	67,122		61,991		51,757		56,001		61,564		8	%	9	%
Total revenues	69,786		65,894		54,764		60,296		65,883		6	%	6	%
Noninterest expense (a)	58,668		54,608		59,846		51,254		54,741		7	%	7	%
Income/(loss) before income taxes	11,118		11,286		(5,082	)	9,042		11,142		(1	)%	*
Provision/(benefit) for income taxes	3,874		3,971		(2,383	)	3,155		4,143		(2	)%	(6	)%
Net income/(loss)	$7,244		$7,315		$(2,699	)	$5,887		$6,999		(1	)%	4	%

Corporate
Net interest income/(expense)	$(14,374	)	$(19,226	)	$(19,031	)	$(17,370	)	$(16,080	)	25	%	11	%
Noninterest income	5,723		5,485		8,559		3,901		5,385		4	%	6	%
Total revenues	(8,651	)	(13,741	)	(10,472	)	(13,469	)	(10,695	)	37	%	19	%
Noninterest expense	13,477		17,695		11,764		14,019		14,362		(24	)%	(6	)%
Loss before income taxes	(22,128	)	(31,436	)	(22,236	)	(27,488	)	(25,057	)	30	%	12	%
Benefit for income taxes	(11,257	)	(27,622	)	(24,932	)	(15,976	)	(11,714	)	59	%	4	%
Net income/(loss)	$(10,871	)	$(3,814	)	$2,696		$(11,512	)	$(13,343	)	NM		19	%

Non-Strategic
Net interest income	$11,458		$12,376		$14,329		$13,807		$14,215		(7	)%	(19	)%
Noninterest income	2,185		2,117		2,033		4,422		2,560		3	%	(15	)%
Total revenues	13,643		14,493		16,362		18,229		16,775		(6	)%	(19	)%
Provision/(provision credit) for loan losses	(11,767	)	(4,856	)	(5,696	)	(15,078	)	85		NM		NM
Noninterest expense (b)	9,427		23,856		8,200		9,121		171,674		(60	)%	(95	)%
Income/(loss) before income taxes	15,983		(4,507	)	13,858		24,186		(154,984	)	NM		NM
Provision/(benefit) for income taxes	6,193		(1,748	)	5,353		9,342		(41,194	)	NM		NM
Net income/(loss)	$9,790		$(2,759	)	$8,505		$14,844		$(113,790	)	NM		NM

Total Consolidated
Net interest income	$172,074		$166,652		$163,562		$166,640		$156,866		3	%	10	%
Noninterest income	134,305		132,232		125,103		130,301		129,689		2	%	4	%
Total revenues	306,379		298,884		288,665		296,941		286,555		3	%	7	%
Provision for loan losses	3,000		1,000		1,000		2,000		5,000		NM		(40	)%
Noninterest expense	226,927		243,740		215,436		218,394		376,221		(7	)%	(40	)%
Income/(loss) before income taxes	76,452		54,144		72,229		76,547		(94,666	)	41	%	NM
Provision/(benefit) for income taxes	24,239		2,715		8,897		21,590		(22,261	)	NM		NM
Net income/(loss)	$52,213		$51,429		$63,332		$54,957		$(72,405	)	2	%	NM

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

NM - Not meaningful

* Amount is less than one percent.

(a)	3Q15 includes an $11.6 million charge to litigation and regulatory matters related to the resolution of a legal matter.
(b)	4Q15 includes $14.2 million of loss accruals related to legal matters; 1Q15 includes $162.5 million of loss accruals related to the settlement of potential claims related to FHN’s underwriting and origination of FHA-insured mortgage loans.

FHN REGIONAL BANKING

Quarterly, Unaudited

											1Q16 Changes vs.
	1Q16		4Q15		3Q15		2Q15		1Q15		4Q15		1Q15

Income Statement (thousands)
Net interest income	$172,326		$169,599		$165,257		$165,908		$154,412		2	%	12	%
Provision for loan losses	14,767		5,856		6,696		17,078		4,915		NM		NM
Noninterest income:
NSF / Overdraft fees (a)	9,576		11,630		11,678		10,664		9,144		(18	)%	5	%
Cash management fees	8,760		8,637		8,482		8,884		8,878		1	%	(1	)%
Debit card income	3,221		3,302		3,313		3,323		3,060		(2	)%	5	%
Other	4,288		4,382		4,398		4,538		4,537		(2	)%	(5	)%
Total deposit transactions and cash management	25,845		27,951		27,871		27,409		25,619		(8	)%	1	%
Brokerage, management fees and commissions	10,415		11,021		11,620		12,456		11,399		(5	)%	(9	)%
Trust services and investment management	6,569		6,889		6,605		7,432		6,713		(5	)%	(2	)%
Bankcard income	5,132		5,423		5,257		5,587		4,977		(5	)%	3	%
Other service charges	2,318		2,358		2,562		2,637		2,422		(2	)%	(4	)%
Miscellaneous revenue	8,996		8,997		8,839		10,456		9,050		*		(1	)%
Total noninterest income	59,275		62,639		62,754		65,977		60,180		(5	)%	(2	)%
Noninterest expense:
Employee compensation, incentives, and benefits	52,173		51,554		49,249		49,865		48,282		1	%	8	%
Other (b)	93,182		96,027		86,377		94,135		87,162		(3	)%	7	%
Total noninterest expense	145,355		147,581		135,626		144,000		135,444		(2	)%	7	%
Income before income taxes	$71,479		$78,801		$85,689		$70,807		$74,233		(9	)%	(4	)%
PPNR (c)	86,246		84,657		92,385		87,885		79,148		2	%	9	%
Efficiency ratio (d)	62.76	%	63.55	%	59.48	%	62.10	%	63.12	%

Balance Sheet (millions)
Average loans	$15,224		$14,760		$14,312		$14,326		$13,513		3	%	13	%
Average other earning assets	47		42		58		55		48		12	%	(2	)%
Total average earning assets	15,271		14,802		14,370		14,381		13,561		3	%	13	%
Average core deposits	17,592		17,351		16,976		16,752		16,263		1	%	8	%
Average other deposits	461		338		354		406		423		36	%	9	%
Total average deposits	18,053		17,689		17,330		17,158		16,686		2	%	8	%
Total period-end deposits	18,534		18,077		17,287		17,226		17,240		3	%	8	%
Total period-end assets	16,280		16,397		15,166		15,266		14,896		(1	)%	9	%
Net interest margin (e)	4.60	%	4.61	%	4.63	%	4.69	%	4.68	%
Net interest spread	3.42		3.36		3.33		3.35		3.37
Loan yield	3.57		3.48		3.45		3.48		3.51
Deposit average rate	0.15		0.12		0.12		0.13		0.14

Key Statistics
Financial center locations	174		177		174		175		178		(2	)%	(2	)%

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

NM - Not meaningful

* Amount is less than one percent.

(a)	1Q16 and 1Q15 levels primarily attributable to seasonality in NSF fees.
(b)	3Q15 decrease primarily driven by lower allocated personnel expenses due in large part to gains recognized in third quarter related to an employee benefit plan amendment.
(c)	Pre-provision net revenue is not a GAAP number but is used in regulatory stress test reporting. The presentation of PPNR in this Financial Supplement follows the regulatory definition.
(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 FIXED INCOME

Quarterly, Unaudited

											1Q16 Changes vs.
	1Q16		4Q15		3Q15		2Q15		1Q15		4Q15		1Q15

Income Statement (thousands)
Net interest income	$2,664		$3,903		$3,007		$4,295		$4,319		(32	)%	(38	)%
Noninterest income:
Fixed income product revenue	57,583		52,713		42,969		46,685		53,510		9	%	8	%
Other	9,539		9,278		8,788		9,316		8,054		3	%	18	%
Total noninterest income	67,122		61,991		51,757		56,001		61,564		8	%	9	%
Noninterest expense (a)	58,668		54,608		59,846		51,254		54,741		7	%	7	%
Income/(loss) before income taxes	$11,118		$11,286		$(5,082	)	$9,042		$11,142		(1	)%	*

Efficiency ratio (b)	84.07	%	82.87		NM		85.00	%	83.09	%
Fixed income product average daily revenue	$944		$850		$671		$729		$877		11	%	8	%

Balance Sheet (millions)
Average trading inventory	$1,138		$1,303		$1,133		$1,358		$1,366		(13	)%	(17	)%
Average other earning assets	822		805		763		761		781		2	%	5	%
Total average earning assets	1,960		2,108		1,896		2,119		2,147		(7	)%	(9	)%
Total period-end assets	2,362		1,779		2,362		2,273		2,809		33	%	(16	)%
Net interest margin (c)	0.63	%	0.82	%	0.73	%	0.87	%	0.83	%

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

NM - Not meaningful

* Amount is less than one percent.

(a)	3Q15 includes an $11.6 million charge to litigation and regulatory matters related to the resolution of a legal matter.
(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

											1Q16 Changes vs.
	1Q16		4Q15		3Q15		2Q15		1Q15		4Q15		1Q15

Income Statement (thousands)
Net interest income/(expense)	$(14,374)		$(19,226	)	$(19,031	)	$(17,370	)	$(16,080	)	25	%	11	%
Noninterest income excluding securities gains/(losses) (a)	4,149		4,046		8,904		3,893		5,109		3	%	(19	)%
Securities gains/(losses), net	1,574		1,439		(345	)	8		276		9	%	NM
Noninterest expense (b)	13,477		17,695		11,764		14,019		14,362		(24	)%	(6	)%
Loss before income taxes	$(22,128	)	$(31,436	)	$(22,236	)	$(27,488	)	$(25,057	)	30	%	12	%

Average Balance Sheet (millions)
Average loans	$103		$110		$120		$128		$138		(6	)%	(25	)%
Total earning assets	$5,093		$4,830		$4,592		$4,282		$5,162		5	%	(1	)%
Net interest margin (c)	(1.19	)%	(1.56	)%	(1.63	)%	(1.63	)%	(1.28	)%

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

NM - Not meaningful

(a)	3Q15 includes a $5.8 million gain related to the extinguishment of debt.
(b)	4Q15 includes $2.8 million of impairment related to a tax credit investment accounted for under the equity method and $2.7 million of costs related to the TrustAtlantic acquisition.
(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 NON-STRATEGIC

Quarterly, Unaudited

											1Q16 Changes vs.
	1Q16		4Q15		3Q15		2Q15		1Q15		4Q15		1Q15

Income Statement (thousands)
Net interest income	$11,458		$12,376		$14,329		$13,807		$14,215		(7	)%	(19	)%
Provision/(provision credit) for loan losses	(11,767	)	(4,856	)	(5,696	)	(15,078	)	85		NM		NM
Noninterest income (a)	2,185		2,117		2,033		4,422		2,560		3	%	(15	)%
Noninterest expense (b)	9,427		23,856		8,200		9,121		171,674		(60	)%	(95	)%
Income/(loss) before income taxes	$15,983		$(4,507	)	$13,858		$24,186		$(154,984	)	NM		NM

Average Balance Sheet (millions)
Loans	$1,967		$2,073		$2,201		$2,337		$2,472		(5	)%	(20	)%
Loans held-for-sale	106		109		113		115		120		(3	)%	(12	)%
Trading securities	4		5		5		5		5		(20	)%	(20	)%
Allowance for loan losses	(69	)	(76	)	(87	)	(99	)	(105	)	(9	)%	(34	)%
Other assets	34		13		16		53		65		NM		(48	)%
Total assets	2,042		2,124		2,248		2,411		2,557		(4	)%	(20	)%
Net interest margin (c)	2.33	%	2.25	%	2.46	%	2.25	%	2.19	%
Efficiency ratio (d)	69.10	%	NM		50.12	%	50.04	%	NM

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

NM - Not meaningful

(a)	2Q15 includes a $2.7 million pre-tax gain on sale of property.
(b)	4Q15 includes $14.2 million of loss accruals related to legal matters; 1Q15 includes $162.5 million of loss accruals related to the settlement of potential claims related to FHN’s underwriting and origination of FHA-insured mortgage loans.
(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.
(d)	Noninterest expense divided by total revenue excluding securities gains/(losses).

FHN ASSET QUALITY: CONSOLIDATED

Quarterly, Unaudited

											1Q16 Changes vs.
(Thousands)	1Q16		4Q15		3Q15		2Q15		1Q15		4Q15		1Q15

Allowance for Loan Losses Walk-Forward
Beginning reserve	$210,242		$210,814		$221,351		$228,328		$232,448		*		(10	)%
Provision	3,000		1,000		1,000		2,000		5,000		NM		(40	)%
Charge-offs	(17,612	)	(16,614	)	(21,810	)	(19,434	)	(17,999	)	6	%	(2	)%
Recoveries	8,404		15,042		10,273		10,457		8,879		(44	)%	(5	)%
Ending balance	$204,034		$210,242		$210,814		$221,351		$228,328		(3	)%	(11	)%
Reserve for unfunded commitments	5,495		5,926		6,231		5,561		4,135		(7	)%	33	%
Total allowance for loan losses plus reserve for unfunded commitments	$209,529		$216,168		$217,045		$226,912		$232,463		(3	)%	(10	)%

Allowance for Loan Losses
Regional Banking	$143,088		$137,586		$128,942		$132,741		$125,982		4	%	14	%
Non-Strategic	60,946		72,656		81,872		88,610		102,346		(16	)%	(40	)%
Total allowance for loan losses	$204,034		$210,242		$210,814		$221,351		$228,328		(3	)%	(11	)%

Nonperforming Assets
Regional Banking
Nonperforming loans	$72,323		$56,475		$50,986		$69,094		$63,620		28	%	14	%
Foreclosed real estate (a)	11,045		16,298		17,042		19,230		19,704		(32	)%	(44	)%
Total Regional Banking	$83,368		$72,773		$68,028		$88,324		$83,324		15	%	*
Non-Strategic
Nonperforming loans	$120,335		$120,946		$129,951		$130,894		$133,804		(1	)%	(10	)%
Nonperforming loans held-for-sale after fair value adjustments	7,508		7,846		7,347		6,372		6,888		(4	)%	9	%
Foreclosed real estate (a)	6,415		8,679		8,830		9,879		9,977		(26	)%	(36	)%
Total Non-Strategic	$134,258		$137,471		$146,128		$147,145		$150,669		(2	)%	(11	)%
Corporate
Nonperforming loans	$927		$1,677		$3,043		$3,079		$2,805		(45	)%	(67	)%
Total nonperforming assets	$218,553		$211,921		$217,199		$238,548		$236,798		3	%	(8	)%

Net Charge-Offs
Regional Banking	$9,265		$(2,787	)	$10,495		$10,318		$5,745		NM		61	%
Non-Strategic	(57	)	4,359		1,042		(1,341	)	3,375		NM		NM
Total net charge-offs	$9,208		$1,572		$11,537		$8,977		$9,120		NM		1	%

Consolidated Key Ratios (b)
NPL %	1.10	%	1.01	%	1.10	%	1.20	%	1.20	%
NPA %	1.20		1.15		1.25		1.37		1.37
Net charge-offs %	0.21		0.04		0.28		0.21		0.23
Allowance / loans %	1.16		1.19		1.26		1.31		1.36
Allowance / NPL	1.05	x	1.17	x	1.15	x	1.09	x	1.14	x
Allowance / NPA	0.97	x	1.03	x	1.00	x	0.95	x	0.99	x
Allowance / net charge-offs	5.51	x	NM		4.61	x	6.15	x	6.17	x

Other
Loans past due 90 days or more (c)	$36,958		$40,591		$38,455		$39,077		$46,889		(9	)%	(21	)%
Guaranteed portion (c)	16,279		16,631		16,856		16,221		18,552		(2	)%	(12	)%
Foreclosed real estate from government insured loans	7,061		8,086		9,460		11,159		10,096		(13	)%	(30	)%
Period-end loans, net of unearned income (millions)	17,575		17,687		16,725		16,937		16,732		(1	)%	5	%

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

NM - Not meaningful

* Amount is less than one percent.

(a)	Excludes foreclosed real estate from government-insured mortgages.
(b)	See Glossary of Terms for definitions of Consolidated Key Ratios.
(c)	Includes loans held-for-sale.

FHN ASSET QUALITY: CONSOLIDATED
Quarterly, Unaudited

											1Q16 Changes vs.
	1Q16		4Q15		3Q15		2Q15		1Q15		4Q15		1Q15

Key Portfolio Details
C&I
Period-end loans ($ millions)	$10,239		$10,436		$9,610		$9,833		$9,638		(2	)%	6	%
30+ Delinq. % (a) (b)	0.37	%	0.08	%	0.09	%	0.08	%	0.07	%
NPL %	0.38		0.25		0.31		0.44		0.35
Charge-offs % (qtr. annualized)	0.23		NM		0.26		0.17		0.07
Allowance / loans %	0.79	%	0.71	%	0.74	%	0.80	%	0.70	%
Allowance / charge-offs	3.50	x	NM		2.83	x	4.85	x	10.41	x

Commercial Real Estate
Period-end loans ($ millions)	$1,849		$1,675		$1,488		$1,401		$1,321		10	%	40	%
30+ Delinq. % (a) (c)	0.18	%	0.27	%	0.43	%	0.23	%	0.33	%
NPL %	0.51		0.52		0.54		0.84		1.01
Charge-offs % (qtr. annualized)	0.10		0.29		NM		0.22		0.03
Allowance / loans %	1.39	%	1.50	%	1.70	%	1.53	%	1.34	%
Allowance / charge-offs	15.16	x	5.39	x	NM		7.29	x	45.37	x

Consumer Real Estate
Period-end loans ($ millions)	$4,690		$4,767		$4,814		$4,870		$4,923		(2	)%	(5	)%
30+ Delinq. % (a)	0.82	%	1.00	%	0.92	%	0.94	%	0.98	%
NPL %	2.43		2.33		2.32		2.35		2.43
Charge-offs % (qtr. annualized)	0.10		0.09		0.18		NM		0.31
Allowance / loans %	1.44	%	1.69	%	1.71	%	1.75	%	2.22	%
Allowance / charge-offs	14.06	x	NM		9.41	x	NM		7.06	x

Permanent Mortgage
Period-end loans ($ millions)	$443		$454		$464		$488		$512		(2	)%	(13	)%
30+ Delinq. % (a)	2.50	%	2.11	%	2.01	%	2.26	%	2.76	%
NPL %	6.83		6.97		7.30		6.66		6.43
Charge-offs % (qtr. annualized)	NM		NM		0.67		0.11		0.44
Allowance / loans %	4.24	%	4.17	%	4.33	%	4.59	%	3.94	%
Allowance / charge-offs	NM		NM		6.25	x	40.53	x	8.79	x

Credit Card and Other
Period-end loans ($ millions)	$354		$355		$349		$346		$338		*		5	%
30+ Delinq. % (a)	1.13	%	1.08	%	1.19	%	1.09	%	1.20	%
NPL %	0.38		0.38		0.21		0.22		0.22
Charge-offs % (qtr. annualized)	2.86		2.56		2.79		5.73		3.51
Allowance / loans %	3.23	%	3.35	%	3.28	%	3.84	%	4.01	%
Allowance / charge-offs	1.13	x	1.30	x	1.16	x	0.66	x	1.10	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)	1Q16 increase was driven by regional bank C&I but over half are expected to be favorably resolved in early second quarter.
(c)	3Q15 increase was due to 2 purchased credit impaired loans from the 2013 MNB acquisition.

FHN ASSET QUALITY: REGIONAL BANKING
Quarterly, Unaudited

											1Q16 Changes vs.
	1Q16		4Q15		3Q15		2Q15		1Q15		4Q15		1Q15

Total Regional Banking
Period-end loans ($ millions)	$15,570		$15,571		$14,483		$14,556		$14,200		*		10	%
30+ Delinq. % (a)	0.39	%	0.23	%	0.25	%	0.21	%	0.24	%
NPL %	0.46		0.36		0.35		0.47		0.45
Charge-offs % (qtr. annualized)	0.24		NM		0.29		0.29		0.17
Allowance / loans %	0.92	%	0.88	%	0.89	%	0.91	%	0.89	%
Allowance / charge-offs	3.84	x	NM		3.10	x	3.21	x	5.41	x

Key Portfolio Details
C&I
Period-end loans ($ millions)	$9,818		$10,015		$9,178		$9,398		$9,185		(2)	%	7	%
30+ Delinq. % (a) (b)	0.37	%	0.08	%	0.10	%	0.08	%	0.07	%
NPL %	0.36		0.23		0.18		0.32		0.24
Charge-offs % (qtr. annualized)	0.24		NM		0.33		0.18		0.08
Allowance / loans %	0.81	%	0.72	%	0.72	%	0.78	%	0.68	%
Allowance / charge-offs	3.48	x	NM		2.21	x	4.48	x	9.42	x

Commercial Real Estate
Period-end loans ($ millions)	$1,849		$1,675		$1,488		$1,400		$1,320		10	%	40	%
30+ Delinq. % (a) (c)	0.18	%	0.27	%	0.43	%	0.23	%	0.32	%
NPL %	0.51		0.52		0.54		0.84		1.00
Charge-offs % (qtr. annualized)	0.10		0.31		NM		0.22		0.03
Allowance / loans %	1.39	%	1.50	%	1.70	%	1.53	%	1.33	%
Allowance / charge-offs	14.23	x	4.99	x	NM		7.22	x	52.33	x

Consumer Real Estate
Period-end loans ($ millions)	$3,531		$3,515		$3,469		$3,413		$3,358		*		5	%
30+ Delinq. % (a)	0.46	%	0.52	%	0.48	%	0.47	%	0.55	%
NPL %	0.76		0.68		0.75		0.78		0.84
Charge-offs % (qtr. annualized)	0.06		0.11		0.11		0.08		0.15
Allowance / loans %	0.75	%	0.83	%	0.79	%	0.73	%	0.97	%
Allowance / charge-offs	11.78	x	7.68	x	7.62	x	9.73	x	6.45	x

Credit Card, Permanent Mortgage, and Other
Period-end loans ($ millions)	$372		$366		$348		$345		$337		2	%	10	%
30+ Delinq. % (a)	1.18	%	1.13	%	1.33	%	1.18	%	1.29	%
NPL %	0.28		0.29		0.14		0.14		0.15
Charge-offs % (qtr. annualized) (d)	2.82		2.40		2.49		5.57		3.22
Allowance / loans %	3.06	%	3.04	%	3.00	%	3.72	%	3.88	%
Allowance / charge-offs	1.10	x	1.29	x	1.19	x	0.66	x	1.16	x

ASSET QUALITY: CORPORATE

Permanent Mortgage
Period-end loans ($ millions)	$92		$97		$107		$113		$123		(5)	%	(25)	%
30+ Delinq. % (a)	3.66	%	2.92	%	2.95	%	2.51	%	3.41	%
NPL %	1.00		1.72		2.85		2.72		2.29
Charge-offs % (qtr. annualized)	NM		NM		NM		NM		NM
Allowance / loans %	NM		NM		NM		NM		NM
Allowance / charge-offs	NM		NM		NM		NM		NM

NM - Not meaningful

* Amount is less than one percent.

(a)	30+ Delinquency % includes all accounts delinquent more than one month and still accruing interest.
(b)	Over half of the loans driving the 1Q16 increase are expected to be favorably resolved in early second quarter.
(c)	3Q15 increase was due to 2 purchased credit impaired loans from the 2013 MNB acquisition.
(d)	2Q15 increase was primarily driven by charge-offs in a sub segment of the credit card portfolio which had previously been reserved for.

FHN ASSET QUALITY: NON-STRATEGIC
Quarterly, Unaudited

											1Q16 Changes vs.
	1Q16		4Q15		3Q15		2Q15		1Q15		4Q15		1Q15

Total Non-Strategic
Period-end loans ($ millions)	$1,913		$2,018		$2,135		$2,268		$2,409		(5)	%	(21)	%
30+ Delinq. % (a)	1.59	%	1.77	%	1.57	%	1.67	%	1.67	%
NPL %	6.29		5.99		6.08		5.77		5.55
Charge-offs % (qtr. annualized)	NM		0.83		0.19		NM		0.55
Allowance / loans %	3.19	%	3.60	%	3.83	%	3.91	%	4.25	%
Allowance / charge-offs	NM		4.20	x	19.80	x	NM		7.48	x

Key Portfolio Details
Commercial
Period-end loans ($ millions)	$421		$422		$432		$435		$454		*		(7)	%
30+ Delinq. % (a)	0.23	%	0.02	%	0.02	%	0.02	%	0.10	%
NPL %	0.83		0.83		3.08		3.07		2.70
Charge-offs % (qtr. annualized)	0.03		3.87		NM		NM		NM
Allowance / loans %	0.34	%	0.34	%	1.35	%	1.24	%	1.10	%
Allowance / charge-offs	10.11	x	0.09	x	NM		NM		NM

Consumer Real Estate
Period-end loans ($ millions)	$1,160		$1,251		$1,345		$1,458		$1,565		(7)	%	(26)	%
30+ Delinq. % (a)	1.91	%	2.34	%	2.07	%	2.06	%	1.92	%
NPL %	7.52		6.97		6.36		6.03		5.83
Charge-offs % (qtr. annualized)	0.21		0.04		0.37		NM		0.64
Allowance / loans %	3.51	%	4.12	%	4.09	%	4.14	%	4.90	%
Allowance / charge-offs	16.09	x	NM		10.67	x	NM		7.36	x

Permanent Mortgage
Period-end loans ($ millions)	$322		$336		$348		$365		$379		(4)	%	(15)	%
30+ Delinq. % (a)	2.22	%	1.88	%	1.58	%	2.12	%	2.50	%
NPL %	8.95		8.80		8.71		7.92		7.82
Charge-offs % (qtr. annualized)	NM		NM		0.90		0.14		0.59
Allowance / loans %	5.70	%	5.61	%	5.75	%	6.11	%	5.32	%
Allowance / charge-offs	NM		NM		6.23	x	44.22	x	8.82	x

Other Consumer
Period-end loans ($ millions)	$10		$9		$10		$10		$11		11	%	(9)	%
30+ Delinq. % (a)	1.23	%	1.47	%	1.77	%	1.31	%	1.40	%
NPL %	7.70		7.28		7.09		6.86		6.66
Charge-offs % (qtr. annualized)	NM		5.37		10.22		5.97		9.24
Allowance / loans %	4.63	%	9.07	%	10.34	%	4.95	%	4.69	%
Allowance / charge-offs	NM		1.67	x	0.98	x	0.81	x	0.49	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.

FHN: PORTFOLIO METRICS
Unaudited


C&I Portfolio: $10.2 Billion (58.3% of Total Loans) as of March 31, 2016
		% OS
	General Corporate, Commercial, and Business Banking Loans		80%
	Loans to Mortgage Companies		15%
	Trust Preferred Loans		3%
	Bank Holding Company Loans		2%


Consumer Real Estate (primarily Home Equity) Portfolio: $4.7 Billion (26.7% of Total Loans)

Origination LTV and FICO for Portfolio as of March 31, 2016		Loan-to-Value
(excludes whole loan insurance)		<=60%	>60% - <=80%		>80% - 90%	>90%
	FICO score greater than or equal to 740	11%		23%	17%	11%
	FICO score 720-739	1%		4%	4%	3%
	FICO score 700-719	1%		3%	3%	2%
	FICO score 660-699	1%		4%	3%	3%
	FICO score 620-659	1%		1%	1%	1%
	FICO score less than 620	-%		1%	-%	1%


Origination LTV and FICO for Portfolio - Regional Bank as of March 31, 2016		Loan-to-Value
(excludes whole loan insurance)		<=60%	>60% - <=80%		>80% - 90%	>90%
	FICO score greater than or equal to 740	12%		24%	18%	13%
	FICO score 720-739	1%		3%	3%	3%
	FICO score 700-719	1%		3%	2%	2%
	FICO score 660-699	1%		3%	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 March 31, 2016		Loan-to-Value
(excludes whole loan insurance)		<=60%	>60% - <=80%		>80% - 90%	>90%
	FICO score greater than or equal to 740	8%		20%	15%	5%
	FICO score 720-739	2%		6%	6%	2%
	FICO score 700-719	2%		6%	6%	2%
	FICO score 660-699	2%		5%	4%	4%
	FICO score 620-659	-%		1%	2%	1%
	FICO score less than 620	-%		-%	-%	1%

Consumer Real Estate Portfolio Detail:
			Origination Characteristics
	Vintage	Balances ($B)	W/A Age (mo.)	CLTV	FICO	% TN	% 1st lien
	pre-2003	$-	170	77%	703	40%	29%
	2003	$0.1	153	77%	716	29%	35%
	2004	$0.2	140	80%	718	18%	28%
	2005	$0.4	128	82%	725	15%	16%
	2006	$0.4	117	79%	730	21%	18%
	2007	$0.4	105	81%	737	26%	19%
	2008	$0.2	94	75%	745	73%	51%
	2009	$0.1	82	72%	747	86%	58%
	2010	$0.2	68	79%	751	92%	72%
	2011	$0.3	56	77%	760	88%	86%
	2012	$0.6	45	77%	764	90%	91%
	2013	$0.5	33	78%	755	86%	85%
	2014	$0.5	21	82%	757	86%	89%
	2015	$0.7	9	80%	758	82%	87%
	2016	$0.1	1	79%	763	84%	87%
	Total	$4.7	64	79%	748(a)	65%	64%
(a)	748 average portfolio origination FICO; 744 weighted average portfolio FICO (refreshed).

FHN NON-GAAP TO GAAP RECONCILIATION
Quarterly, Unaudited


(Dollars and shares in thousands, except per share data)	1Q16		4Q15		3Q15		2Q15		1Q15
Tangible Common Equity (Non-GAAP)
(A) Total equity (GAAP)	$2,642,948		$2,639,586		$2,580,245		$2,517,905		$2,499,257
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	$2,251,893		$2,248,531		$2,189,190		$2,126,850		$2,108,202
Less: Intangible assets (GAAP) (b)	216,222		217,522		171,556		172,854		174,152
(C) Tangible common equity (Non-GAAP)	$2,035,671		$2,031,009		$2,017,634		$1,953,996		$1,934,050

Tangible Assets (Non-GAAP)
(D) Total assets (GAAP)	$26,963,682		$26,192,637		$25,386,073		$25,237,392		$25,713,319
Less: Intangible assets (GAAP) (b)	216,222		217,522		171,556		172,854		174,152
(E) Tangible assets (Non-GAAP)	$26,747,460		$25,975,115		$25,214,517		$25,064,538		$25,539,167

Average Tangible Common Equity (Non-GAAP)
(F) Average total equity (GAAP)	$2,644,374		$2,659,575		$2,545,544		$2,511,929		$2,607,521
Less: Average noncontrolling interest (a)	295,431		295,431		295,431		295,431		295,431
Less: Average preferred stock	95,624		95,624		95,624		95,624		95,624
(G) Total average common equity	$2,253,319		$2,268,520		$2,154,489		$2,120,874		$2,216,466
Less: Average intangible assets (GAAP) (b)	216,855		211,757		172,191		173,486		174,787
(H) Average tangible common equity (Non-GAAP)	$2,036,464		$2,056,763		$1,982,298		$1,947,388		$2,041,679

Annualized Net Income/(Loss) Available to Common Shareholders
(I) Net income/(loss) available to common shareholders (annualized)	$192,299		$186,590		$233,302		$202,780		$(311,114	)

Period-end Shares Outstanding
(J) Period-end shares outstanding	232,547		238,587		234,237		234,021		233,499

Ratios
(I)/(H) Return on average tangible common equity (“ROTCE”) (Non-GAAP)	9.44	%	9.07	%	11.77	%	10.41	%	(15.24	)%
(I)/(G) Return on common equity (GAAP)	8.53	%	8.23	%	10.83	%	9.56	%	(14.04	)%
(C)/(E) Tangible common equity to tangible assets (“TCE/TA”) (Non-GAAP)	7.61	%	7.82	%	8.00	%	7.80	%	7.57	%
(A)/(D) Total equity to total assets (GAAP)	9.80	%	10.08	%	10.16	%	9.98	%	9.72	%
(C)/(J) Tangible book value per common share (Non-GAAP)	$8.75		$8.51		$8.61		$8.35		$8.28
(B)/(J) Book value per common share (GAAP)	$9.68		$9.42		$9.35		$9.09		$9.03
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.

FHN GLOSSARY OF TERMS

Average Assets for Leverage: The amount of assets a company uses to calculate the leverage ratio, which includes average total assets less disallowed portions of goodwill, other intangibles, and deferred tax assets, as well as certain other regulatory adjustments made to tier 1 capital.

Common Equity Tier 1 Ratio: Ratio consisting of common equity adjusted for certain unrealized gains/(losses) on available-for-sale securities, less disallowed portions of goodwill, other intangibles, and deferred tax assets as well as certain other regulatory deductions divided by risk-weighted assets.

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

Fully Taxable Equivalent (“FTE”): Reflects the amount of tax-exempt income adjusted to a level that would yield the same after-tax income had that income been subject to taxation.

Risk-Weighted Assets: A regulatory risk-based calculation that takes into account the broad differences in risks among a banking organization’s assets and off-balance sheet financial instruments.

Tier 1 Capital Ratio: Ratio consisting of shareholders’ equity adjusted for certain unrealized gains/(losses) on available-for-sale securities, plus qualifying portions of noncontrolling interests, less disallowed portions of goodwill, other intangible assets, and deferred tax assets as well as certain other regulatory deductions divided by risk-weighted assets.

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.

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

Leverage Ratio: Ratio is tier 1 capital to average assets for leverage.

Asset Quality - Consolidated Key Ratios

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

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

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

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

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

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

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

First Horizon National Corporation First Quarter 2016 Earnings April 15, 2016

2 ▪ Portions of this presentation use non - GAAP financial information. Each of those portions is so noted, and a reconciliation of that non - GAAP information to comparable GAAP information is provided in a footnote or in the appendix at the end of this presentation. ▪ This presentation contains forward - looking statements, which may include guidance, involving significant risks and uncertainties which will be identified by words such as “ believe”,“expect”,“anticipate”,“intend”,“estimate ”, “ should”,“is likely”,“will”,“going forward” and other expressions that indicate future events and trends and may be followed by or reference cautionary statements. A number of factors could cause actual results to differ materially from those in the forward - looking statements. These factors are outlined in our recent earnings and other press releases and in more detail in the most current 10 - Q and 10 - K. FHN disclaims any obligation to update any such forward - looking statements or to publicly announce the result of any revisions to any of the forward - looking statements to reflect future events or developments.

3 First Quarter 2016 Accomplishments Strength in Core Businesses Focus on Positive Operating Leverage Capital Deployment Regional Bank: ▪ Pre - Provision Net Revenue up 9% ▪ Average loan growth of 13%, led by increases in specialty lending areas ▪ Average core deposits up 8% Fixed Income: ▪ Average daily revenue at $944k, up 8% ▪ Return on assets at 1.3% 1 ▪ Return on equity at 21% 1 ▪ Repurchased $75mm or 6mm shares in 1Q16 ▪ 1Q16 VWAP of $12.32 3 ▪ Increased dividend by 17% in 1Q16 All comparisons are year over year. 1 ROA and ROE are annualized numbers. 2 Adjusted expense is a Non - GAAP number and excludes ~$163mm in litigation and acquisition expense from the $376mm reported in 1Q1 5 and ~$4mm in impairment and acquisition expense from the $227mm reported in 1Q16. 3 Includes $0.02 commission per share. Share repurchase program has $58mm authorization remaining. ▪ Consolidated revenues increased 7%, while adjusted expense 2 rose 5% ▪ Higher variable compensation related to an increase in fixed income revenue ▪ Strategic investments in people, technology, and growth markets ▪ Consolidated net interest income up 10% and net interest margin up 14bps ▪ Consolidated average loans up 7% and average deposits increased 10% ▪ Right sizing branch network with 1Q16 impairment of $3.7mm which should reduce run - rate by ~$4 - 5mm annually ▪ Revenue per FTE in Regional Bank up 6%

FINANCIAL RESULTS 4

$19.4 +18% 1Q16 Consolidated Financial Results 5 Net Interest Income Fee Income Expense $ in millions Financial Results 1Q16 $172 Loan Loss Provision $134 $227 $3 $48 1Q16 vs +10% +4% - 40% - 40% NM 4Q15 $167 $132 $244 $1 $47 1Q15 $157 $130 $376 $5 $(77) 4Q15 +3% +2% - 7% NM +2% 1Q15 Actuals ▪ Net interest income improvement driven by an increase in Fed Funds rate and higher commercial loan balances ▪ Fee income up, largely driven by increase in fixed income ADR ▪ Effective tax rate of 32% in 1Q16 vs 5% in 4Q15 ▪ Total average loans up YOY and LQ due to growth in specialty lending areas ▪ Average core deposits up YOY from TrustAtlantic acquisition and up LQ due to seasonal inflow of public fund deposits Net Income Available to Common Shareholders Numbers may not add to total due to rounding. LQ – Linked Quarter. YOY - Year over Year. * Amount is less than 1%. NM – Not Meaningful. 1 Adjusted Expense, Adjusted Pre - Tax Income, and Adjusted Net Income Available to Common Shareholders are Non - GAAP numbers and are reconciled in the appendix. Total Average Loans ($B) Total Average Core Deposits ($B) Adjusted Net Income Available to Common Shareholders 1 $17.3 Adjusted Expense 1 $51 $223 +7% +9% +21% +5% $16.9 $19.0 $51 $224 $16.1 $17.8 $42 $213 +2% +2% * * Adjusted Pre - Tax Income 1 $80 $74 $68 +9% Pre - Tax Income $76 NM $54 $(95) +41%

1Q16 Segment Highlights 6 Drivers and Impacts Net Income 1 $ in millions, except EPS 1Q16 Per Share Impact 2 Regional Banking Fixed Income Corporate 1 Non - Strategic Total 1 4Q15 $51 $7 $(8) $(3) $47 1Q15 $48 $7 $(18) $(114) $(77) 1Q16 $46 $7 $(15) $10 $48 $0.19 $0.03 $(0.06) $0.04 $0.20 ▪ Fixed income product ADR of $944k in 1Q16 vs $850k in 4Q15 ▪ Expenses up from higher variable compensation and seasonal FICA reset ▪ Loan loss provision of $(12)mm in 1Q16 vs $(5)mm in 4Q15 ▪ 4Q15 includes litigation expense of $14.2mm vs. $162.5mm in 1Q15 ▪ Non - Strategic average loans declined 5% LQ and 20% YOY to $2.0B ▪ NII up 12% YOY and 2% LQ ▪ Average loans up 13% YOY and 3% LQ ▪ Expenses down 2% LQ ▪ 1Q16 expense includes $3.7mm branch impairment ▪ Loan loss provision $15mm in 1Q16 vs $6mm in 4Q15 Numbers may not add to total due to rounding. LQ – Linked Quarter. YOY - Year over Year. 1 Corporate and total show net income available to common, which reflects $3mm of noncontrolling interest and $1.6mm of preferr ed stock dividends in each quarter. 2 Segment EPS impacts are Non - GAAP numbers and are reconciled in the table. EPS impacts are calculated using the 1Q16 net income c olumn divided by the 237 million diluted shares outstanding. ▪ 1Q16 includes $1.7mm gain on sales of securities vs $1.8mm in 4Q15 ▪ 4Q15 includes $2.8mm of impairment related to a tax credit investment and $2.7mm of acquisition costs related to TrustAtlantic

Regional Banking Financial Results Strong Year over Year Balance Sheet and NII Growth 7 Net Interest Income Fee Income Expense $ in millions Financial Results 1Q16 $172 Loan Loss Provision $59 $145 $15 1Q16 vs +12% - 2% +7% NM 4Q15 $170 $63 $148 $6 1Q15 $154 $60 $135 $5 4Q15 +2% - 5% - 2% NM 1Q15 Actuals ▪ Revenues up YOY, flat LQ ▪ NII up YOY, LQ driven by an increase in Fed Funds rate and higher commercial loan balances ▪ Fee income LQ decrease primarily driven by seasonally lower deposit fees ▪ Expenses decreased 2% LQ largely due to lower pension and advertising expenses, somewhat offset by branch impairment expense and FICA reset ▪ Average loans increased YOY and LQ ▪ Continued strong growth in specialty lending areas such as asset - based lending, commercial real estate and loans to mortgage companies ▪ Average core deposits up YOY from TrustAtlantic acquisition and up LQ due to seasonal inflow of public fund deposits ▪ Loan loss provision increase driven by moderation of upgrades vs downgrades in commercial loan portfolio Numbers may not add to total due to rounding. LQ – Linked Quarter. YOY - Year over Year. NM – Not Meaningful. Net Income $46 $51 $48 - 4% - 9% Total Average Loans ($B) Average Core Deposits ($B) $15.2 $14.8 $13.5 +13% +3% $17.6 $17.4 $16.3 +8% +1% Pre - Provision Net Revenue $86 +9% $85 $79 +2%

$3.38B $3.50B $3.65B $0.76B $0.89B $0.89B $1.88B $2.09B $2.16B $1.24B $1.58B $1.71B $2.11B $2.03B $2.02B $1.44B $1.55B $1.60B $1.44B $1.70B $1.79B $1.04B $1.21B $1.24B 1Q15 4Q15 1Q16 $0 $3 $6 $9 $12 $15 8 Profitable Growth Opportunities: Regional Banking Regional Banking Average Loans by Lending Area ▪ Regional Banking average loan growth of 13% YOY and 3% LQ ▪ Average Commercial loans up 16% YOY and 4% LQ ▪ Continued strong loans in specialty lending areas ▪ CRE up $0.5B YOY and $0.1B LQ, reflects continued funding up of commitments across broad based property types and geographies ▪ CRE YOY growth includes loans from TrustAtlantic acquisition ▪ Energy comprises 1% of commercial portfolio $15B Commercial Business PC/WM CRE Retail ABL Loans to Mtg Cos Other Specialty 1Q16 Average Regional Bank Commercial Loans Corporate 9% ABL 15% CRE 16% Commercial 33% Healthcare 3% Correspondent 3% Energy 1% Specialty Lending Areas Loans to Mortgage Companies 12% +13% LQ – Linked Quarter. YOY - Year over Year.

Fixed Income - FTN Financial Solid Financial Results in Challenging Market Conditions 1Q16 Daily Fixed Income Product Revenue ▪ Fixed income product average daily revenue (ADR) at $944k in 1Q16, up 11% LQ and up 8% YOY ▪ Fixed income ADR increase driven by higher market volatility, decline in rates and strength and expansion of distribution platform ▪ Expenses up from higher variable compensation and seasonal FICA reset ▪ ROA at 1.3% and ROE at 21% in 1Q16 1 ▪ Focused on investing in extensive fixed income distribution platform: ▪ Strategic hires to increase market share ▪ Expansion of municipal products platform ▪ Continued development of public finance capability 5% 25% 31% 26% 13% 0 5 10 15 20 $250 - $500k $500 - $750K $750k - $1mm $1mm - $1.25mm $1.25mm+ Number of Days LQ – Linked Quarter. YOY - Year over Year. NM – Not Meaningful. 1 ROA and ROE are annualized numbers. ~40% of days $1mm+ NII Fee Income $ in millions, except ADR Financial Results 1 Q16 $3 Net Income $67 $7 1 Q16 vs - 38% +9% +4% 4Q15 $4 $62 $7 1 Q15 $4 $62 $7 4Q15 - 32 % +8% - 1% 1 Q15 Actuals Expense $59 +7% $55 $55 +7 % ADR $944k $850k $877k +8% +11% Pretax Income $11 NM $11 $11 - 1 % 9

10 Net Interest Income Sensitivity Impact 1 Consolidated Net Interest Income and Net Interest Margin Strong NII Growth and Margin Expansion +1.0% $7mm +2.4% +$17mm 0% 1% 2% 3% 4% 5% +25bps +50bps ▪ NII up $15mm or 10% YOY ▪ NIM at 2.88%, up 6 bps LQ and up 14 bps YOY ▪ Loan growth of 15% from 1Q14 to 1Q16 ▪ Average core deposits up 2% LQ and 9% YOY ▪ Attractive and stable low - cost funding mix in Regional Banking with 59% DDA and interest checking deposits ▪ Regional Banking net interest spread up 6 bps LQ and 5 bps YOY ▪ Floating rate loans comprise 67% of loan portfolio vs fixed rate loans at 33% NIM Stability and Loan Growth Drive NII Increase NII and NIM Linked - Quarter Change Drivers LQ – Linked Quarter. YOY - Year over Year. Numbers may not add to total due to rounding. 1 NII sensitivity analysis uses FHN’s balance sheet as of 1Q16. Bps impact assumes increase in Fed Funds rate. 1Q16 $172.1 2.88% 4Q15 $166.7 2.82% Fed Rate Increase Loan Fees / Cash Basis - $0.7 - 1bp Fed Stock Dividend Decrease Decrease in Long - term Debt +4bp Increase in Securities Portfolio +$0.9 - 1bp Higher Fed Balances - $0.7 +$2.3 +6bp - 1bp - +$3.3 - 1bp NII NIM ($ in millions) $152 $157 $160 $159 $157 $167 $164 $167 $172 2.50% 2.75% 3.00% 3.25% $100 $125 $150 $175 $200 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 NII (left axis) NIM (right axis) $200mm NII +13% Other +$0.2 -

11 Allowance to Loans Ratio by Segment 1.36% 1.31% 1.26% 1.19% 1.16% 0.89% 0.91% 0.89% 0.88% 0.92% 4.25% 3.91% 3.83% 3.60% 3.19% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 1Q15 2Q15 3Q15 4Q15 1Q16 Consolidated Regional Banking Non-Strategic Net Charge - Offs Asset Quality Trends 0.00% 0.13% 0.25% 0.38% 0.50% $0 $5 $10 $15 1Q15 2Q15 3Q15 4Q15 1Q16 NCOs $ Provision $ NCO %¹ $15mm ▪ Net charge - offs of $9mm in 1Q16 vs $2mm in 4Q15 ▪ 4Q15 included a single recovery of $6mm in C&I; 1Q16 charge - offs were largely driven by one energy - related credit of $6mm ▪ Non - Performing Assets at $219mm in 1Q16 vs $212mm in 4Q15 ▪ Increase due to an uptick in non - performing loans primarily from a couple of C&I credits, partially offset by declines in foreclosed assets ▪ 30+ delinquencies as a percentage of total loans at 54 bps in 1Q16 vs 42 bps in 4Q15 ▪ Increase largely within Regional Bank C&I portfolio, with half of these expected to be resolved favorably in early 2Q16 Numbers may not add to total due to rounding. LQ – Linked Quarter. YOY - Year over Year. 1 Net charge - off % is annualized. ($ in mm) 1Q15 2Q15 3Q15 4Q15 1Q16 Provision $5 $2 $1 $1 $3 Charge - offs $(18) $(19) $(22) $(17) $(18) Recovery $9 $10 $10 $15 $8 Asset Quality Highlights

12 1Q16 Consolidated Long - Term Targets ROTCE 1 9.4% 15.0%+ ROA 1 0.79% 1.10 – 1.30% CET1 2 10.4% 8.0 – 9.0% NIM 1 2.88% 3.25 – 3.50% NCO / Average Loans 1 0.21% 0.20 - 0.60% Fee Income / Revenue 44% 40 - 50% Efficiency Ratio 74% 60 - 65% 1 ROTCE, ROA, NIM, and NCO / Average Loans are annualized. ROTCE is a Non - GAAP number and is reconciled in the appendix 2 Current quarter is an estimate. 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 Risk Adjusted Margin Total Assets Earning Assets Pre-tax Income Tax Rate Annualized Net Charge-Offs 0.20% - 0.60% % Fee Income 40% - 50% Efficiency Ratio 60% - 65% Return on Tangible Common Equity 15%+ Equity / Assets Common Equity Tier 1 8% - 9% Return on Assets 1.10% - 1.30% Net Interest Margin 3.25% - 3.50%

13 Building Blocks Provide Path to Bonefish Targets Building a Foundation for Long - Term Earnings Power Chart illustrates a quantified path to long - term goals; it contains no forecasts. Current Return/ Earnings Power Increased Fixed Income Activity Target Bonefish Return/ Earnings Power Growth Opportunities Economic Profit Improvement Optimize/ Redeploy Capital Continued Efficiencies ▪ Non - Strategic W ind - Down ▪ Infrastructure Reductions ▪ Established Market Profitability / Growth ▪ Product/ Relationship Profitability Improvement ▪ Sales Productivity Improvement ▪ Process Improvements ▪ Branch Network Rationalization ▪ Dividends ▪ Share Buybacks ▪ M&A ▪ Latent Income Embedded in Fixed Income Platform Capacity ▪ ADR at $ 1.0 - $1.5mm ▪ Specialty Lending ▪ Mid - Atlantic ▪ Middle TN ▪ Houston ▪ Wealth / Investments ▪ Municipals (FTN Financial) ▪ Latent Income Embedded in Asset - Sensitive Balance Sheet ▪ Strong Deposit Franchise Capture Interest Rate Opportunities More Controllable Less Controllable

14 Building a Foundation for Attractive Long - Term Earnings Power ▪ Proven execution capabilities ▪ Unique size, scope, and strengths ▪ Focused on 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 15

Notable Items 16 2015 Notable Item Pre - Tax Amount Employee Benefit Plan Amendment $8.3mm Retirement of Trust Preferred Debt $5.8mm 1Q 2Q Settlement with DOJ/HUD $(162.5)mm 3Q Refer to the financial supplement for further variance trend analysis. 1 TrustAtlantic acquisition expense amounts were not denoted as notable in 1Q15, 2Q15, and 3Q15 earnings presentations. 2 Pre - tax loss associated with resolution of a legal matter in the Fixed Income segment. 3 Pre - tax loss associated with a legal matter in the Non - Strategic segment. 4 After - tax impact assumes an annual tax rate of ~39% in 2015 and ~32% for 1Q16. 5 EPS impact calculated by dividing the after - tax impact by the 236mm diluted shares outstanding in 2015 and 237mm diluted shares outstanding in 1Q16. Litigation Expense 2 $(11.6)mm Discrete Tax Benefit / Capital Loss Carryover N/A 4Q Litigation Accrual 3 $(14.2)mm Impairment Related to Tax Credit Investment $(2.8)mm $(2.7)mm TrustAtlantic Acquisition Expenses Discrete Tax Benefits N/A 2016 Notable Item Pre - Tax Amount Total Pre - Tax Effect of Notable Items After - Tax Impact of Notable Items 4 EPS Impact of Notable Items 5 Total Pre - Tax Effect of Notable Items After - Tax Impact of Notable Items 4 EPS Impact of Notable Items 5 $(182.0)mm $(111.4)mm $(0.47) $(4.0)mm $(2.8)mm $(0.01) $(0.6)mm TrustAtlantic Acquisition Expenses 1 $(1.1)mm TrustAtlantic Acquisition Expenses 1 $(0.6)mm TrustAtlantic Acquisition Expenses 1 Branch Impairment $(3.7)mm $(0.3)mm TrustAtlantic Acquisition Expenses

17 1Q16 Credit Quality Summary by Portfolio Numbers may not add to total due to rounding. Data as of 1Q16. NM - Not meaningful. 1 Credit card, Permanent Mortgage, and Other. 2 Credit card, OTC, and Other Consumer. 3 Net charge - offs are annualized. 4 Exercised clean - up calls on jumbo securitizations in 1Q13, 3Q12, 2Q11, and 4Q10, which are now on balance sheet in the Corporate segment. ($ in millions) CRE HE & HELOC Other 1 Total Permanent Mortgage Commercial (C&I & Other) HE & HELOC Permanent Mortgage Other 2 Total Period End Loans $9,818 $1,849 $3,531 $372 $15,570 $92 $421 $1,160 $322 $10 $17,575 30+ Delinquency 0.37% 0.18% 0.46% 1.18% 0.39% 3.66% 0.23% 1.91% 2.22% 1.23% 0.00% Dollars $36 $3 $16 $4 $60 $3 $1 $22 $7 $0 $94 NPL % 0.36% 0.51% 0.76% 0.28% 0.46% 1.00% 0.83% 7.52% 8.95% 7.70% 1.10% Dollars $35 $9 $27 $1 $72 $1 $3 $87 $29 $1 $194 Net Charge-offs 3 % 0.24% 0.10% 0.06% 2.82% 0.24% NM 0.03% 0.21% NM NM 0.21% Dollars $6 $0 $1 $3 $9 NM $0 $1 -$1 $0 $9 Allowance $79 $26 $27 $11 $143 NM $1 $41 $18 $0 $204 Allowance / Loans % 0.81% 1.39% 0.75% 3.06% 0.92% NM 0.34% 3.51% 5.70% 4.63% 1.16% Allowance / Charge-offs 3.48x 14.23x 11.78x 1.10x 3.84x NM NM 16.09x NM NM 5.51x Commercial (C&I & Other) FHNC Consol Regional Banking Corporate 4 Non-Strategic

18 Select C&I and CRE Portfolio Metrics Data as of 1Q16. Numbers may not add to total due to rounding. ▪ $10.2B C&I portfolio , diversified by industry ▪ $1.8B CRE portfolio, diversified by geography, comprising 11% of period - end consolidated loans ▪ Commercial (C&I and CRE) net charge - offs were $6.2mm for the quarter ▪ Gross charge - offs were $7.2mm with recoveries of $1.0mm $1.6 $1.8 $1.4 $1.7 $1.5 $1.0 $1.6 $1.4 $1.2 $1.2 $0.0 $0.5 $1.0 $1.5 $2.0 1Q15 2Q15 3Q15 4Q15 1Q16 Period End Average C&I: Loans to Mortgage Companies CRE: Loan Type CRE: Collateral Type CRE: Geographic Distribution Multi - Family 25% Office 14% TN 32% NC 19% GA 13% Other 14% Construction 25% Mini - Perm/ Non - Construction 72% Industrial 14% Hospitality 13% Retail 26% MS 6% SC 7%

19 Core Banking Customers TN 65% CA 7% VA 3% NC 3% GA 3% Other 20% Consumer Portfolio Overview $1.3 $0.7 $0.0 $0.5 $1.0 $1.5 $2.0 In Draw In Repayment HELOC Draw vs Repayment Balances Percent of Home Equity Portfolio: Months Left in Draw Period 16% 20% 10% 6% 6% 42% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 0-12 13-24 25-36 37-48 49-60 >60 Home Equity Portfolio Characteristics Home Equity Geographic Distribution 28% 27% 28% 29% 32% 15% 20% 25% 30% 35% $0.0 $0.5 $1.0 $1.5 $2.0 1Q15 2Q15 3Q15 4Q15 1Q16 Period End Balance Constant Pre-Payment Rate (Right Axis) Non - Strategic Consumer Real Estate Run - Off $2.0B $2.0B Data as of 1Q16. Numbers may not add to total due to rounding. First Second Total Balance $3.0B $1.7B $4.7B Original FICO 754 736 748 Refreshed FICO 755 715 744 Original CLTV 78% 81% 79% Full Doc 95% 76% 88% Owner Occupied 95% 94% 95% HELOCs $0.6B $1.4B $2.0B Weighted Average HELOC Utilization 45% 54% 52%

($ in millions) 1Q15 2Q15 3Q15 4Q15 1Q16 Beginning Balance $119 $116 $117 $115 $115 Net Realized Losses $(3) $0 $(2) $(0) $(1) Provision $0 $0 $0 $0 $0 Ending Balance $116 $117 $115 $115 $114 $0 $100 $200 1Q15 2Q15 3Q15 4Q15 1Q16 GSE New Requests Other New Requests Resolved Pipeline 20 Agency & Non - Agency Update Repurchase Resolution Agreements with Both GSEs Total Pipeline of Repurchase Requests 1 $200mm Mortgage Repurchase Reserve Other Whole Loan Sales and Non - Agency ▪ Represent 44% of all active repurchase/make whole requests in 1Q16 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 Data as of 1Q16. Numbers may not add to total due to rounding. 1 Based on UPB. The pipeline represents active investor claims and mortgage insurance (MI) cancellations under review, both of whi ch could occur on the same loan. Excludes MI cancellation notices that have been reviewed and coverage has been lost. MI cancell ati ons that have resulted in lost coverage are included in management’s assessment of the adequacy of repurchase reserves. 1Q15, 2Q15, 3Q15, 4Q15 and 1Q16 pipeline includes $5.0mm, $1.3mm, $12.2mm, $1 6.1mm and $15.8mm in other claims, respectively, that pose no risk to the repurchase reserve but require formal acknowledgment with Fannie. Net realized losses of $0 in 2Q15 due to ~$3mm in mortgage insurance rescission recoveries. Numbers may not add to total due to rounding.

Reconciliation to GAAP Financials 21 Slides in this presentation use non - GAAP information of return on tangible common equity, adjusted expense and adjusted net income available to common. 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. 1 Notable items have been adjusted using incremental tax rates of 32% in 1Q16 and 1Q15. 4Q15 notable items adjusted at incremen tal rate of 39%. Adjusted taxes in 4Q15 also include an $8 million effective tax rate differential. ($ in millions) Return on Tangible Common Equity 1Q16 Average Total Equity (GAAP) $2,644 Less: Average Noncontrolling Interest (GAAP) $295 Less: Preferred Stock (GAAP) $96 Average Common Equity (GAAP) $2,253 Less: Average Intangible Assets (GAAP) $217 Average Tangible Common Equity (Non-GAAP) $2,036 Net Income Available to Common (GAAP) $48 Annualized Return on Average Tangible Common Equity (Non-GAAP) 9.4% Adjusted Net Income Available to Common Shareholders 1Q16 4Q15 1Q15 Consolidated Pre-Tax Income/Loss (GAAP) $76 $54 -$95 Plus: Notable Items (GAAP) $4 $20 $163 Adjusted Consolidated Pre-tax Income (Non-GAAP) $80 $74 $68 Less: Adjusted Tax 1 (Non-GAAP) $26 $19 $22 Less: Net Income Attributable to Noncontrolling Interest (GAAP) $3 $3 $3 Less: Preferred Stock Dividends (GAAP) $2 $2 $2 Adjusted Net Income Available to Common Shareholders (Non-GAAP) $51 $51 $42 YOY Adjusted Noninterest Expense 1Q16 4Q15 1Q15 Change Total Noninterest Expense (GAAP) $227 $244 $376 -40% Less: Notable Items (Non-GAAP) $4 $20 $163 Adjusted Noninterest Expense (Non-GAAP) $223 $224 $213 5%

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