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

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8-K - FIRST HORIZON CORP	c88116_8k.htm

Exhibit 99.1

FIRST QUARTER 2017

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 financial condition, capital position, and financial results of FHN and its business segments. Non-GAAP measures are reported to FHN’s management and Board of Directors through various internal reports.

Presentation of regulatory measures, some of which follow regulatory definitions rather than GAAP, provides a meaningful base for comparability to other financial institutions subject to the same regulations as FHN. Such measures are used by the various banking regulators in reviewing the performance, stability, and capital adequacy of financial institutions they regulate. 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: common equity tier 1 capital, generally defined as common equity less goodwill, other intangibles, and certain other required regulatory deductions; 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; 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 2017 vs. Fourth Quarter 2016

Consolidated

•

Net income available to common shareholders was $54.0 million, or $.23 per diluted share in first quarter, compared to $53.3 million, or $.23 per diluted share in fourth quarter

•

Net interest income (“NII”) decreased to $189.7 million in first quarter from $195.6 million in fourth quarter; Net Interest Margin (“NIM”) decreased to 2.92 percent in first quarter from 3.00 percent in prior quarter

•

The decrease in NII was driven by lower average balances of loans to mortgage companies, fewer days in first quarter relative to the prior quarter, lower average balances of fixed income trading inventory and run-off of the non-strategic loan portfolios

•

NII was favorably impacted by the positive impact of higher short-term market rates and loan growth within the Regional banking other commercial portfolios

•

The decrease in NIM was primarily due to an increase in average excess cash held at the Fed during first quarter relative to fourth quarter, somewhat offset by higher short-term market rates

•

Noninterest income (including securities gains) was $116.9 million in first quarter compared to $124.1 million in prior quarter

•

The decrease was largely driven by lower fees within the regional banking segment, as well as a decrease in fixed income revenues

•

Noninterest expense decreased to $222.2 million in first quarter from $237.9 million in fourth quarter driven by a net decrease in loss accruals related to legal matters and lower personnel-related expenses, as well as declines in several other expense categories related to continued emphasis on expense discipline

•

Period-end loans were $19.1 billion and $19.6 billion in first and fourth quarter, respectively; average loans decreased 3 percent to $18.8 billion in first quarter

•

Period-end deposits increased to $23.5 billion in first quarter from $22.7 billion in fourth quarter; average deposits increased 2 percent linked quarter to $22.8 billion in first quarter

Regional Banking

•

Pre-tax income was $101.2 million in first quarter compared to $98.5 million in fourth quarter; pre-provision net revenue was $104.3 million and $103.2 million in first and fourth quarters, respectively

•

Period-end loans were $17.5 billion and $17.9 billion in first and fourth quarters, respectively; average loans decreased 3 percent to $17.2 billion in first quarter

•

The decrease in period-end and average loans was primarily driven by a decrease in loans to mortgage companies, somewhat offset by increases in other commercial loan portfolios

•

Period-end deposits increased to $20.5 billion in first quarter from $19.3 billion in fourth quarter; average deposits increased 3 percent to $19.7 billion

•

The increase in period-end and average deposits was primarily driven by a seasonal increase in public funds and an increase in priority savings due to a promotional campaign, somewhat offset by a decrease in insured network deposits

•

NII decreased to $193.4 million in first quarter from $200.7 million in fourth quarter

•

The decrease in NII was largely the result of lower average balances of loans to mortgage companies and fewer days in first quarter relative to the prior quarter, somewhat offset by a higher earnings credit on deposits and higher average balances of other commercial loans

•

Provision expense was $3.1 million in first quarter compared to $4.7 million in the prior quarter reflecting continued strong performance in both the commercial and consumer portfolios

•

Reserves increased $1.9 million from fourth quarter, primarily within the consumer portfolio, while net charge-offs were $1.2 million in first quarter compared to $2.0 million in fourth quarter

•

Noninterest income was $59.0 million in first quarter compared to $63.3 million in fourth quarter

•

The decrease in noninterest income was largely driven by lower deposit fees, which were primarily attributable to lower non-sufficient funds (“NSF”) fees from the combined effects of a seasonable downward trend and a modification of billing practices. Noninterest income was also negatively impacted by lower fee income associated with derivative sales

•

Noninterest expense decreased to $148.1 million in first quarter from $160.9 million in fourth quarter

•

The decrease was driven by a decline in loss accruals related to legal matters, as well as declines in most other expense categories due to continued emphasis on expense discipline

Fixed Income

•

Pre-tax income was $3.3 million in first quarter compared to $5.9 million in fourth quarter

•

NII was $1.2 million in first quarter compared to $2.5 million in fourth quarter

•

The decline in NII was due to lower net inventory positions driven by reduced customer activity

•

Noninterest income decreased to $50.8 million in first quarter from $52.1 million in the prior quarter

•

Fixed income product revenue was $42.7 million in first quarter compared to $43.8 million in fourth quarter

•

Fixed income product average daily revenue (“ADR”) was $689 thousand and $718 thousand in first and fourth quarters, respectively

•

Other product revenue was $8.1 million in first quarter compared to $8.3 million in fourth quarter

•

Noninterest expense remained flat at $48.7 million in first quarter as a decrease in variable compensation expense was offset by the seasonal first quarter FICA reset and an increase in legal fees

FHN PERFORMANCE HIGHLIGHTS (continued)


*First Quarter 2017 vs. Fourth Quarter 2016 (continued)*

Corporate

•

Pre-tax loss was $25.5 million in first quarter compared to pre-tax loss of $27.4 million in prior quarter

•

NII was negative $14.1 million and negative $17.5 million in first and fourth quarter, respectively

•

Estimated effective duration of the securities portfolio was 4.5 years in first quarter compared to 4.8 years in fourth quarter

•

Noninterest income (including net securities gains) was $5.5 million in first quarter compared to $4.7 million in fourth quarter

•

Noninterest expense was $16.9 million in first quarter compared to $14.6 million in prior quarter

Non-Strategic

•

Pre-tax income was $6.5 million in first quarter compared to $4.8 million in fourth quarter

•

NII was $9.3 million and $9.8 million in first and fourth quarter, respectively

•

The provision credit was $4.1 million in first quarter compared to a provision credit of $4.7 million in fourth quarter

•

The level of provision continues to reflect declining balances combined with stable performance within the legacy portfolio

•

Noninterest income was $1.7 million in first quarter compared to $4.0 million in prior quarter

•

Fourth quarter included a $1.5 million gain related to the reversal of a contingency accrual associated with prior sales of MSR

•

Noninterest expense decreased to $8.6 million in first quarter from $13.7 million in fourth quarter driven by a $2.8 million decrease in legal fees and a $2.3 million net decline in loss accruals related to legal matters

Asset Quality

•

Allowance for loan losses decreased to $202.0 million in first quarter from $202.1 million in fourth quarter; the allowance to loans ratio increased 3 bps to 106 basis points in first quarter

•

Reserves for the consumer portfolio decreased $.8 million which was partially offset by a $.7 million increase in commercial portfolio reserves

•

Net recoveries were $.9 million in first quarter compared to $.5 million in fourth quarter

•

Regional bank net charge-offs decreased $.8 million to $1.2 million in first quarter due to improvements in both commercial and consumer portfolios

•

Non-strategic net recoveries decreased $.4 million to $2.1 million in first quarter; the decrease was driven by the consumer real estate portfolio

•

Nonperforming loans (“NPLs”), excluding loans held-for-sale, decreased to $143.4 million in first quarter from $145.6 million in fourth quarter; the decrease was largely driven by the commercial portfolio

•

Nonperforming assets (“NPAs”), excluding loans held-for-sale, were $153.7 million compared to $156.9 million

•

30+ delinquencies as a percentage of total loans increased to 39 basis points in first quarter compared to 34 basis points in fourth quarter; the increase was primarily driven by a few credits within the C&I portfolio, one of which has become current in early second quarter 2017

•

TDRs decreased to $337.2 million in first quarter from $354.5 million in prior quarter

Taxes

•

The effective tax rates for first and fourth quarters were 31.66 percent and 29.37 percent, respectively

•

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

Capital and Liquidity

•

Declared $.09 per common share quarterly dividend in first quarter, aggregating $21.0 million, which was paid on April 3, 2017

•

Declared aggregate preferred quarterly dividend of $1.6 million in first quarter which was paid on April 10, 2017

•

There were no repurchases of shares in first quarter under the current share repurchase program (unrelated to employee stock award programs); $189.7 million remains in the stock purchase authorization first announced in 2014, currently scheduled to expire January 31, 2018

•

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

•

Total equity to total assets (GAAP) of 9.25 percent in first quarter compared to 9.47 percent in prior quarter

•

Tangible common equity to tangible assets (Non-GAAP) of 7.27 percent in first quarter compared to 7.42 percent in prior quarter

•

Common Equity Tier 1 of 10.15 percent in first quarter compared to 9.94 percent in prior quarter

•

Tier 1 of 11.30 percent in first quarter compared to 11.17 percent in prior quarter

•

Total Capital of 12.33 percent in first quarter compared to 12.24 percent in prior quarter

•

Leverage of 9.31 percent in first quarter compared to 9.35 percent in prior quarter

FHN CONSOLIDATED INCOME STATEMENT

Quarterly, Unaudited

																1Q17 Changes vs.
(Dollars in thousands, except per share data)	1Q17			4Q16			3Q16			2Q16			1Q16			4Q16			1Q16

Interest income	$	218,811		$	219,897		$	206,972		$	197,376		$	193,664			*			13	%
Less: interest expense		29,103			24,346			21,777			21,112			21,590			20	%		35	%
Net interest income		189,708			195,551			185,195			176,264			172,074			(3	)%		10	%
Provision/(provision credit) for loan losses		(1,000	)		—			4,000			4,000			3,000			NM			NM
Net interest income after provision for loan losses		190,708			195,551			181,195			172,264			169,074			(2	)%		13	%
Noninterest income:
Fixed income		50,678			51,923			71,748			77,913			66,977			(2	)%		(24	)%
Deposit transactions and cash management		24,565			27,504			27,221			26,991			26,837			(11	)%		(8	)%
Brokerage, management fees and commissions		11,906			11,003			10,828			10,665			10,415			8	%		14	%
Trust services and investment management		6,653			7,053			6,885			7,224			6,565			(6	)%		1	%
Bankcard income (a)		5,455			6,353			6,260			6,558			5,259			(14	)%		4	%
Bank-owned life insurance		3,247			3,558			3,997			3,743			3,389			(9	)%		(4	)%
Securities gains/(losses), net		44			(132	)		(200	)		99			1,574			NM			(97	)%
Other (b)		14,391			16,815			21,806			12,321			13,289			(14	)%		8	%
Total noninterest income		116,939			124,077			148,545			145,514			134,305			(6	)%		(13	)%
Adjusted gross income after provision for loan losses		307,647			319,628			329,740			317,778			303,379			(4	)%		1	%
Noninterest expense:
Employee compensation, incentives, and benefits		134,932			137,324			145,103			143,370			137,151			(2	)%		(2	)%
Repurchase and foreclosure provision (c)		(238	)		(1,104	)		(218	)		(31,400	)		—			78	%		NM
Legal fees		5,283			6,038			4,750			5,891			4,879			(13	)%		8	%
Professional fees		4,746			4,827			4,859			4,284			5,199			(2	)%		(9	)%
Occupancy		12,340			12,818			12,722			12,736			12,604			(4	)%		(2	)%
Computer software (d)		10,799			11,909			10,400			11,226			11,587			(9	)%		(7	)%
Contract employment and outsourcing		2,958			2,696			2,443			2,497			2,425			10	%		22	%
Operations services		10,875			10,913			10,518			10,521			9,900			*			10	%
Equipment rentals, depreciation, and maintenance		6,351			7,959			6,085			7,182			6,159			(20	)%		3	%
FDIC premium expense		5,739			6,095			5,721			4,848			4,921			(6	)%		17	%
Advertising and public relations (e)		4,601			6,093			6,065			4,481			4,973			(24	)%		(7	)%
Communications and courier		3,800			3,593			3,883			3,039			3,750			6	%		1	%
Amortization of intangible assets		1,232			1,300			1,299			1,299			1,300			(5	)%		(5	)%
Other (b)		18,787			27,436			19,928			46,848			22,079			(32	)%		(15	)%
Total noninterest expense		222,205			237,897			233,558			226,822			226,927			(7	)%		(2	)%
Income before income taxes		85,442			81,731			96,182			90,956			76,452			5	%		12	%
Provision for income taxes		27,054			24,008			28,547			30,016			24,239			13	%		12	%
Net income		58,388			57,723			67,635			60,940			52,213			1	%		12	%
Net income attributable to noncontrolling interest		2,820			2,879			2,883			2,852			2,851			(2	)%		(1	)%
Net income attributable to controlling interest		55,568			54,844			64,752			58,088			49,362			1	%		13	%
Preferred stock dividends		1,550			1,550			1,550			1,550			1,550			*			*
Net income available to common shareholders	$	54,018		$	53,294		$	63,202		$	56,538		$	47,812			1	%		13	%
Common Stock Data
EPS	$	0.23		$	0.23		$	0.27		$	0.24		$	0.20			*			15	%
Basic shares (thousands)		233,076			232,731			231,856			231,573			234,651			*			(1	)%
Diluted EPS	$	0.23		$	0.23		$	0.27		$	0.24		$	0.20			*			15	%
Diluted shares (thousands)		236,855			235,590			234,092			233,576			236,666			1	%		*
Key Ratios & Other
Return on average assets (annualized) (f)		0.82	%		0.80	%		0.97	%		0.91	%		0.79	%
Return on average common equity (“ROE”) (annualized) (f)		9.40	%		9.00	%		10.80	%		10.04	%		8.53	%
Return on average tangible common equity (“ROTCE”) (annualized) (f) (g)		10.33	%		9.89	%		11.90	%		11.10	%		9.44	%
Fee income to total revenue (f)		38.13	%		38.84	%		44.54	%		45.21	%		43.55	%
Efficiency ratio (f)		72.47	%		74.40	%		69.94	%		70.51	%		74.45	%
Full time equivalent employees		4,258			4,248			4,246			4,228			4,241

NM - Not meaningful
* Amount is less than one percent.
(a)	2Q16 increase driven by a significant new relationship.
(b)	Refer to the Other Income and Other Expense table on page 7 for additional information.
(c)	Expense reversals driven by the settlements/recoveries of certain repurchase claims.
(d)	4Q16 expense increase largely driven by investments in a new digital banking platform.
(e)	4Q16 includes $1.1 million related to CRA initiatives; 3Q16 increase related to a promotional branding campaign.
(f)	See Glossary of Terms for definitions of Key Ratios.
(g)	This non-GAAP measure is reconciled to ROE (GAAP) in the Non-GAAP to GAAP reconciliation on page 22 of this financial supplement.

FHN OTHER INCOME AND OTHER EXPENSE

Quarterly, Unaudited

														1Q17 Changes vs.
(Thousands)	1Q17			4Q16		3Q16		2Q16			1Q16			4Q16			1Q16

Other Income
ATM and interchange fees	$	2,778		$	3,047	$	3,081	$	2,879		$	2,958			(9	)%		(6	)%
Electronic banking fees		1,323			1,301		1,398		1,381			1,397			2	%		(5	)%
Letter of credit fees		1,036			946		981		1,115			1,061			10	%		(2	)%
Mortgage banking (a)		1,261			2,820		5,524		598			1,273			(55	)%		(1	)%
Deferred compensation (b)		1,827			863		1,038		795			329			NM			NM
Insurance commissions		883			680		1,262		552			487			30	%		81	%
Other service charges		2,984			3,018		3,004		2,996			2,713			(1	)%		10	%
Other (c)		2,299			4,140		5,518		2,005			3,071			(44	)%		(25	)%
Total	$	14,391		$	16,815	$	21,806	$	12,321		$	13,289			(14	)%		8	%

Other Expense
Litigation and regulatory matters	$	(292	)	$	4,684	$	260	$	26,000		$	(475	)		NM			39	%
Tax credit investments		942			1,024		788		831			706			(8	)%		33	%
Travel and entertainment		2,348			3,240		2,478		2,495			2,062			(28	)%		14	%
Employee training and dues		1,543			1,603		1,360		1,338			1,390			(4	)%		11	%
Customer relations		1,336			1,451		1,442		1,483			1,879			(8	)%		(29	)%
Miscellaneous loan costs		622			628		676		565			717			(1	)%		(13	)%
Supplies		863			1,320		1,158		930			1,026			(35	)%		(16	)%
Foreclosed real estate		204			648		815		(432	)		(258	)		(69	)%		NM
Other insurance and taxes		2,390			1,939		2,625		3,014			3,313			23	%		(28	)%
Other (d)		8,831			10,899		8,326		10,624			11,719			(19	)%		(25	)%
Total	$	18,787		$	27,436	$	19,928	$	46,848		$	22,079			(32	)%		(15	)%

NM - Not meaningful
(a)	4Q16 includes a $1.5 million gain related to the reversal of a contingency accrual associated with prior sales of MSR; 3Q16 includes $4.4 million of gains primarily related to recoveries associated with prior legacy mortgage servicing sales.
(b)	Amounts driven by market conditions and are mirrored by changes in deferred compensation expense which is included in employee compensation expense.
(c)	3Q16 includes a $1.8 million gain on the sales of properties.
(d)	2Q16 includes $2.5 million of negative valuation adjustments associated with derivatives related to prior sales of Visa Class B shares; 1Q16 includes $3.7 million of impairment related to branch closures.

FHN CONSOLIDATED PERIOD-END BALANCE SHEET

Quarterly, Unaudited

																1Q17 Changes vs.
(Thousands)	1Q17			4Q16			3Q16			2Q16			1Q16			4Q16			1Q16

Assets:
Investment securities	$	3,953,632		$	3,957,846		$	4,041,934		$	4,023,576		$	4,028,731			*			(2	)%
Loans held-for-sale		105,456			111,248			155,215			117,976			116,270			(5	)%		(9	)%
Loans, net of unearned income		19,090,074			19,589,520			19,555,787			18,589,337			17,574,994			(3	)%		9	%
Federal funds sold		31,495			50,838			27,097			40,570			34,061			(38	)%		(8	)%
Securities purchased under agreements to resell		835,222			613,682			802,815			881,732			767,483			36	%		9	%
Interest-bearing cash (a)		2,106,597			1,060,034			219,834			321,743			951,920			99	%		NM
Trading securities		1,167,310			897,071			1,320,535			1,162,959			1,226,521			30	%		(5	)%
Total earning assets		27,289,786			26,280,239			26,123,217			25,137,893			24,699,980			4	%		10	%
Cash and due from banks		369,290			373,274			327,639			283,648			280,625			(1	)%		32	%
Fixed income receivables (b)		168,315			57,411			91,997			219,939			114,854			NM			47	%
Goodwill		191,371			191,371			191,371			191,307			191,307			*			*
Other intangible assets, net		19,785			21,017			22,317			23,616			24,915			(6	)%		(21	)%
Premises and equipment, net		290,497			289,385			279,178			279,676			274,347			*			6	%
Real estate acquired by foreclosure		15,144			16,237			18,945			20,053			24,521			(7	)%		(38	)%
Allowance for loan losses		(201,968	)		(202,068	)		(201,557	)		(199,807	)		(204,034	)		*			(1	)%
Derivative assets		98,120			121,654			160,736			196,989			165,007			(19	)%		(41	)%
Other assets		1,378,260			1,406,711			1,435,379			1,387,756			1,392,160			(2	)%		(1	)%
Total assets	$	29,618,600		$	28,555,231		$	28,449,222		$	27,541,070		$	26,963,682			4	%		10	%

Liabilities and Equity:
Deposits:
Savings	$	9,573,628		$	9,428,197		$	8,753,115		$	7,960,182		$	7,921,344			2	%		21	%
Other interest-bearing deposits		6,164,775			5,948,439			5,605,734			5,720,628			5,371,864			4	%		15	%
Time deposits		1,385,818			1,355,133			1,325,079			1,264,635			1,317,431			2	%		5	%
Total interest-bearing deposits		17,124,221			16,731,769			15,683,928			14,945,445			14,610,639			2	%		17	%
Noninterest-bearing deposits		6,355,620			5,940,594			5,890,252			5,684,732			5,717,195			7	%		11	%
Total deposits		23,479,841			22,672,363			21,574,180			20,630,177			20,327,834			4	%		16	%
Federal funds purchased		504,805			414,207			538,284			508,669			588,413			22	%		(14	)%
Securities sold under agreements to repurchase		406,354			453,053			341,998			451,129			425,217			(10	)%		(4	)%
Trading liabilities		848,190			561,848			702,226			789,540			738,653			51	%		15	%
Other short-term borrowings (c)		79,454			83,177			792,736			543,033			96,723			(4	)%		(18	)%
Term borrowings (d)		1,035,036			1,040,656			1,065,651			1,076,943			1,323,749			(1	)%		(22	)%
Fixed income payables (b)		21,116			21,002			68,897			90,400			56,399			1	%		(63	)%
Derivative liabilities		101,347			135,897			144,829			170,619			146,297			(25	)%		(31	)%
Other liabilities		401,997			467,944			475,839			588,636			617,449			(14	)%		(35	)%
Total liabilities		26,878,140			25,850,147			25,704,640			24,849,146			24,320,734			4	%		11	%
Equity:
Common stock		146,177			146,015			145,772			145,012			145,342			*			1	%
Capital surplus		1,391,777			1,386,636			1,376,319			1,362,528			1,371,397			*			1	%
Undivided profits		1,061,409			1,029,032			992,264			945,663			905,595			3	%		17	%
Accumulated other comprehensive loss, net		(249,958	)		(247,654	)		(160,828	)		(152,334	)		(170,441	)		1	%		47	%
Preferred stock		95,624			95,624			95,624			95,624			95,624			*			*
Noncontrolling interest (e)		295,431			295,431			295,431			295,431			295,431			*			*
Total equity		2,740,460			2,705,084			2,744,582			2,691,924			2,642,948			1	%		4	%
Total liabilities and equity	$	29,618,600		$	28,555,231		$	28,449,222		$	27,541,070		$	26,963,682			4	%		10	%

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; 1Q17 increase largely driven by an inflow of customer deposits.
(b)	Period-end balances fluctuate based on the level of pending unsettled trades.
(c)	4Q16 decrease due to repayment of FHLB borrowings as a result of an inflow of deposits; 3Q16 and 2Q16 increase related to higher FHLB borrowings as a result of increased loan demand.
(d)	In 2Q16 $250 million of FTBNA subordinated notes matured.
(e)	Consists of preferred stock of subsidiaries.

FHN CONSOLIDATED AVERAGE BALANCE SHEET

Quarterly, Unaudited

																1Q17 Changes vs.
(Thousands)	1Q17			4Q16			3Q16			2Q16			1Q16			4Q16			1Q16

Assets:
Earning assets:
Loans, net of unearned income:
Commercial, financial, and industrial (C&I)	$	11,381,258		$	11,987,562		$	11,281,691		$	10,451,954		$	9,994,084			(5	)%		14	%
Commercial real estate		2,176,355			2,089,314			1,997,121			1,901,592			1,765,435			4	%		23	%
Consumer real estate		4,491,786			4,545,646			4,601,420			4,662,172			4,732,968			(1	)%		(5	)%
Permanent mortgage		415,916			429,914			436,952			435,521			447,800			(3	)%		(7	)%
Credit card and other		348,123			361,311			362,166			360,874			353,661			(4	)%		(2	)%
Total loans, net of unearned income (a)		18,813,438			19,413,747			18,679,350			17,812,113			17,293,948			(3	)%		9	%
Loans held-for-sale		110,726			127,484			132,434			114,859			122,146			(13	)%		(9	)%
Investment securities:
U.S. treasuries		100			100			100			100			100			*			*
U.S. government agencies		3,735,472			3,810,207			3,844,103			3,814,059			3,790,568			(2	)%		(1	)%
States and municipalities		4,350			4,344			4,516			5,830			5,823			*			(25	)%
Corporate bonds		10,000			10,000			10,000			10,000			10,000			*			*
Other		186,670			186,452			186,632			186,812			185,638			*			1	%
Total investment securities		3,936,592			4,011,103			4,045,351			4,016,801			3,992,129			(2	)%		(1	)%
Trading securities		929,545			1,283,407			1,155,776			1,269,909			1,142,215			(28	)%		(19	)%
Other earning assets:
Federal funds sold		17,015			19,323			28,049			20,825			25,454			(12	)%		(33	)%
Securities purchased under agreements to resell		691,469			792,156			808,861			891,973			817,963			(13	)%		(15	)%
Interest-bearing cash (b)		2,117,498			711,485			491,164			475,881			1,009,739			NM			NM
Total other earning assets		2,825,982			1,522,964			1,328,074			1,388,679			1,853,156			86	%		52	%
Total earning assets		26,616,283			26,358,705			25,340,985			24,602,361			24,403,594			1	%		9	%
Allowance for loan losses		(202,618	)		(201,306	)		(200,654	)		(201,622	)		(208,884	)		1	%		(3	)%
Cash and due from banks		367,136			334,168			320,549			310,691			316,467			10	%		16	%
Fixed income receivables		41,688			83,019			75,255			73,029			74,495			(50	)%		(44	)%
Premises and equipment, net		289,202			282,849			278,042			275,206			275,764			2	%		5	%
Derivative assets		84,419			138,451			170,546			147,561			117,815			(39	)%		(28	)%
Other assets		1,609,996			1,640,781			1,624,979			1,621,322			1,639,443			(2	)%		(2	)%
Total assets	$	28,806,106		$	28,636,667		$	27,609,702		$	26,828,548		$	26,618,694			1	%		8	%

Liabilities and equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Savings	$	9,473,424		$	9,202,101		$	8,507,474		$	7,865,977		$	7,898,580			3	%		20	%
Other interest-bearing deposits		5,889,098			5,706,246			5,450,401			5,431,736			5,281,059			3	%		12	%
Time deposits		1,405,242			1,341,052			1,266,765			1,300,709			1,286,320			5	%		9	%
Total interest-bearing deposits		16,767,764			16,249,399			15,224,640			14,598,422			14,465,959			3	%		16	%
Federal funds purchased		552,820			528,266			598,666			600,381			630,143			5	%		(12	)%
Securities sold under agreements to repurchase		419,131			378,837			387,486			490,449			445,964			11	%		(6	)%
Trading liabilities		642,456			745,011			752,270			828,629			758,739			(14	)%		(15	)%
Other short-term borrowings (c)		80,939			243,527			252,048			184,602			112,498			(67	)%		(28	)%
Term borrowings (d)		1,039,719			1,064,206			1,075,039			1,072,393			1,310,370			(2	)%		(21	)%
Total interest-bearing liabilities		19,502,829			19,209,246			18,290,149			17,774,876			17,723,673			2	%		10	%
Noninterest-bearing deposits		6,051,510			6,039,025			5,874,857			5,654,446			5,470,855			*			11	%
Fixed income payables		22,843			63,745			44,600			30,872			53,004			(64	)%		(57	)%
Derivative liabilities		84,928			123,460			146,063			129,260			122,378			(31	)%		(31	)%
Other liabilities		421,328			454,363			535,714			583,606			604,410			(7	)%		(30	)%
Total liabilities		26,083,438			25,889,839			24,891,383			24,173,060			23,974,320			1	%		9	%
Equity:
Common stock		146,098			145,902			145,362			145,226			147,287			*			(1	)%
Capital surplus		1,389,062			1,380,843			1,369,708			1,367,468			1,405,996			1	%		(1	)%
Undivided profits		1,044,388			1,015,742			967,872			924,822			889,209			3	%		17	%
Accumulated other comprehensive loss, net		(247,935	)		(186,714	)		(155,678	)		(173,083	)		(189,173	)		33	%		31	%
Preferred stock		95,624			95,624			95,624			95,624			95,624			*			*
Noncontrolling interest (e)		295,431			295,431			295,431			295,431			295,431			*			*
Total equity		2,722,668			2,746,828			2,718,319			2,655,488			2,644,374			(1	)%		3	%
Total liabilities and equity	$	28,806,106		$	28,636,667		$	27,609,702		$	26,828,548		$	26,618,694			1	%		8	%

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

NM - Not meaningful

* Amount is less than one percent.

(a)	Includes loans on nonaccrual status.
(b)	Includes excess balances held at Fed; 1Q17 increase largely driven by an inflow of customer deposits.
(c)	4Q16, 3Q16 and 2Q16 include higher FHLB borrowings as a result of increased loan demand.
(d)	In 2Q16 $250 million of FTBNA subordinated notes matured.
(e)	Consists of preferred stock of subsidiaries.

FHN CONSOLIDATED NET INTEREST INCOME (a)

Quarterly, Unaudited

																1Q17 Changes vs.
(Thousands)	1Q17			4Q16			3Q16			2Q16			1Q16			4Q16			1Q16

Interest Income:
Loans, net of unearned income (b)	$	183,031		$	187,158		$	176,511		$	165,550		$	160,687			(2	)%		14	%
Loans held-for-sale		1,283			1,602			1,445			1,198			1,261			(20	)%		2	%
Investment securities:
U.S. government agencies		24,221			23,110			22,517			22,801			23,273			5	%		4	%
States and municipalities		101			102			102			106			97			(1	)%		4	%
Corporate bonds		131			131			131			132			131			*			*
Other		1,414			1,479			1,138			1,152			1,201			(4	)%		18	%
Total investment securities		25,867			24,822			23,888			24,191			24,702			4	%		5	%
Trading securities		6,602			8,616			7,110			8,374			8,185			(23	)%		(19	)%
Other earning assets:
Federal funds sold		54			52			70			57			80			4	%		(33	)%
Securities purchased under agreements to resell (c)		590			(186	)		169			322			226			NM			NM
Interest-bearing cash		4,235			1,027			604			574			1,252			NM			NM
Total other earning assets		4,879			893			843			953			1,558			NM			NM
Interest income	$	221,662		$	223,091		$	209,797		$	200,266		$	196,393			(1	)%		13	%

Interest Expense:
Interest-bearing deposits:
Savings	$	9,210		$	6,333		$	4,939		$	4,146		$	4,190			45	%		NM
Other interest-bearing deposits		4,143			2,935			2,592			2,526			2,304			41	%		80	%
Time deposits		2,833			2,728			2,496			2,474			2,323			4	%		22	%
Total interest-bearing deposits		16,186			11,996			10,027			9,146			8,817			35	%		84	%
Federal funds purchased		1,056			731			779			762			797			44	%		32	%
Securities sold under agreements to repurchase		89			47			90			138			59			89	%		51	%
Trading liabilities		3,781			3,848			3,331			3,782			4,039			(2	)%		(6	)%
Other short-term borrowings		247			373			385			303			272			(34	)%		(9	)%
Term borrowings		7,744			7,351			7,165			6,981			7,606			5	%		2	%
Interest expense		29,103			24,346			21,777			21,112			21,590			20	%		35	%
Net interest income - tax equivalent basis		192,559			198,745			188,020			179,154			174,803			(3	)%		10	%
Fully taxable equivalent adjustment		(2,851	)		(3,194	)		(2,825	)		(2,890	)		(2,729	)		11	%		(4	)%
Net interest income	$	189,708		$	195,551		$	185,195		$	176,264		$	172,074			(3	)%		10	%

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

* Amount is less than one percent.

NM - Not meaningful

(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)	4Q16 driven by negative market rates on reverse repurchase agreements.

FHN CONSOLIDATED AVERAGE BALANCE SHEET: YIELDS AND RATES

Quarterly, Unaudited

	1Q17		4Q16		3Q16		2Q16		1Q16

Assets:
Earning assets (a):
Loans, net of unearned income (b):
Commercial loans	3.86	%	3.75	%	3.63	%	3.58	%	3.58	%
Consumer loans	4.13		4.06		4.08		4.08		4.07
Total loans, net of unearned income (c)	3.94		3.84		3.76		3.74		3.73
Loans held-for-sale	4.64		5.03		4.36		4.17		4.13
Investment securities:
U.S. government agencies	2.59		2.43		2.34		2.39		2.46
States and municipalities	9.33		9.39		9.01		7.27		6.70
Corporate bonds	5.25		5.25		5.25		5.25		5.25
Other	3.03		3.17		2.44		2.47		2.59
Total investment securities	2.63		2.48		2.36		2.41		2.48
Trading securities	2.84		2.69		2.46		2.64		2.87
Other earning assets:
Federal funds sold	1.28		1.07		0.99		1.11		1.26
Securities purchased under agreements to resell (d)	0.35		(0.09	)	0.08		0.15		0.11
Interest-bearing cash	0.81		0.57		0.49		0.48		0.50
Total other earning assets	0.70		0.23		0.25		0.28		0.34
Interest income/total earning assets	3.37	%	3.37	%	3.30	%	3.27	%	3.23	%

Liabilities:
Interest-bearing liabilities:
Interest-bearing deposits:
Savings	0.39	%	0.27	%	0.23	%	0.21	%	0.21	%
Other interest-bearing deposits	0.29		0.20		0.19		0.19		0.18
Time deposits	0.82		0.81		0.78		0.77		0.73
Total interest-bearing deposits	0.39		0.29		0.26		0.25		0.25
Federal funds purchased	0.77		0.55		0.52		0.51		0.51
Securities sold under agreements to repurchase	0.09		0.05		0.09		0.11		0.05
Trading liabilities	2.39		2.06		1.76		1.84		2.14
Other short-term borrowings (e)	1.24		0.61		0.61		0.66		0.97
Term borrowings (f)	2.98		2.76		2.67		2.60		2.32
Interest expense/total interest-bearing liabilities	0.60		0.51		0.47		0.48		0.49
Net interest spread	2.77	%	2.86	%	2.83	%	2.79	%	2.74	%
Effect of interest-free sources used to fund earning assets	0.15		0.14		0.13		0.13		0.14
Net interest margin	2.92	%	3.00	%	2.96	%	2.92	%	2.88	%

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)	4Q16 driven by negative market rates on reverse repurchase agreements.
(e)	4Q16, 3Q16 and 2Q16 rates driven by higher FHLB borrowings at a rate lower than other short-term borrowings.
(f)	Rates are expressed net of unamortized debenture cost for term borrowings.

FHN CAPITAL HIGHLIGHTS

Quarterly, Unaudited

																1Q17 Changes vs.
(Dollars and shares in thousands)	1Q17			4Q16			3Q16			2Q16			1Q16			4Q16			1Q16

Common equity tier 1 capital (a) (b)	$	2,409,219		$	2,377,987		$	2,326,207		$	2,260,722		$	2,226,621			1	%		8	%
Tier 1 capital (a) (b)		2,681,438			2,671,871			2,615,449			2,538,876			2,493,080			*			8	%
Total capital (a)		2,926,985			2,926,010			2,868,437			2,788,558			2,744,189			*			7	%

Risk-weighted assets (“RWA”) (a) (b)		23,735,500			23,914,158			23,716,102			22,503,305			21,559,035			(1	)%		10	%
Average assets for leverage (a) (b)		28,805,448			28,581,251			27,481,309			26,715,209			26,519,986			1	%		9	%

Common equity tier 1 ratio (a) (b)		10.15	%		9.94	%		9.81	%		10.05	%		10.33	%
Tier 1 ratio (a) (b)		11.30			11.17			11.03			11.28			11.56
Total capital ratio (a)		12.33			12.24			12.09			12.39			12.73
Leverage ratio (a) (b)		9.31			9.35			9.52			9.50			9.40

Total equity to total assets		9.25	%		9.47	%		9.65	%		9.77	%		9.80	%
Tangible common equity/tangible assets (“TCE/TA”) (c)		7.27	%		7.42	%		7.58	%		7.63	%		7.61	%
Period-end shares outstanding		233,883			233,624			233,235			232,019			232,547			*			1	%
Cash dividends declared per common share	$	0.09		$	0.07		$	0.07		$	0.07		$	0.07			29	%		29	%
Book value per common share	$	10.05		$	9.90		$	10.09		$	9.92		$	9.68
Tangible book value per common share (c)	$	9.14		$	9.00		$	9.17		$	8.99		$	8.75
Market capitalization (millions)	$	4,326.8		$	4,674.8		$	3,552.2		$	3,197.2		$	3,046.4

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)	See Glossary of Terms for definition.
(c)	TCE/TA and Tangible book value per common share are non-GAAP measures and are reconciled to Total equity to total assets (GAAP) and to Book value per common share (GAAP), respectively, in the Non-GAAP to GAAP reconciliation on page 22 of this financial supplement.

FHN BUSINESS SEGMENT HIGHLIGHTS

Quarterly, Unaudited

																1Q17 Changes vs.
(Thousands)	1Q17			4Q16			3Q16			2Q16			1Q16			4Q16			1Q16

Regional Banking
Net interest income	$	193,389		$	200,716		$	190,508		$	178,318		$	172,312			(4	)%		12	%
Noninterest income		58,976			63,324			65,128			61,275			59,276			(7	)%		(1	)%
Total revenues		252,365			264,040			255,636			239,593			231,588			(4	)%		9	%
Provision for loan losses		3,098			4,692			8,544			10,883			14,767			(34	)%		(79	)%
Noninterest expense (a)		148,065			160,851			145,050			164,524			145,399			(8	)%		2	%
Income before income taxes		101,202			98,497			102,042			64,186			71,422			3	%		42	%
Provision for income taxes		36,623			35,400			37,063			22,372			25,407			3	%		44	%
Net income	$	64,579		$	63,097		$	64,979		$	41,814		$	46,015			2	%		40	%

Fixed Income
Net interest income	$	1,151		$	2,541		$	2,411		$	3,146		$	2,667			(55	)%		(57	)%
Noninterest income		50,822			52,061			72,073			78,083			67,122			(2	)%		(24	)%
Total revenues		51,973			54,602			74,484			81,229			69,789			(5	)%		(26	)%
Noninterest expense		48,685			48,726			59,423			62,802			58,623			*			(17	)%
Income before income taxes		3,288			5,876			15,061			18,427			11,166			(44	)%		(71	)%
Provision for income taxes		1,024			1,875			5,518			6,786			3,892			(45	)%		(74	)%
Net income	$	2,264		$	4,001		$	9,543		$	11,641		$	7,274			(43	)%		(69	)%

Corporate
Net interest income/(expense)	$	(14,100	)	$	(17,500	)	$	(18,193	)	$	(15,847	)	$	(14,363	)		19	%		2	%
Noninterest income		5,476			4,670			5,134			4,909			5,723			17	%		(4	)%
Total revenues		(8,624	)		(12,830	)		(13,059	)		(10,938	)		(8,640	)		33	%		*
Noninterest expense		16,880			14,593			14,929			15,930			13,461			16	%		25	%
Loss before income taxes		(25,504	)		(27,423	)		(27,988	)		(26,868	)		(22,101	)		7	%		(15	)%
Benefit for income taxes		(13,093	)		(15,118	)		(16,772	)		(12,784	)		(11,246	)		13	%		(16	)%
Net income/(loss)	$	(12,411	)	$	(12,305	)	$	(11,216	)	$	(14,084	)	$	(10,855	)		(1	)%		(14	)%

Non-Strategic
Net interest income	$	9,268		$	9,794		$	10,469		$	10,647		$	11,458			(5	)%		(19	)%
Noninterest income (b)		1,665			4,022			6,210			1,247			2,184			(59	)%		(24	)%
Total revenues		10,933			13,816			16,679			11,894			13,642			(21	)%		(20	)%
Provision/(provision credit) for loan losses		(4,098	)		(4,692	)		(4,544	)		(6,883	)		(11,767	)		13	%		65	%
Noninterest expense (c)		8,575			13,727			14,156			(16,434	)		9,444			(38	)%		(9	)%
Income/(loss) before income taxes		6,456			4,781			7,067			35,211			15,965			35	%		(60	)%
Provision/(benefit) for income taxes		2,500			1,851			2,738			13,642			6,186			35	%		(60	)%
Net income/(loss)	$	3,956		$	2,930		$	4,329		$	21,569		$	9,779			35	%		(60	)%

Total Consolidated
Net interest income	$	189,708		$	195,551		$	185,195		$	176,264		$	172,074			(3	)%		10	%
Noninterest income		116,939			124,077			148,545			145,514			134,305			(6	)%		(13	)%
Total revenues		306,647			319,628			333,740			321,778			306,379			(4	)%		*
Provision/(provision credit) for loan losses		(1,000	)		—			4,000			4,000			3,000			NM			NM
Noninterest expense		222,205			237,897			233,558			226,822			226,927			(7	)%		(2	)%
Income before income taxes		85,442			81,731			96,182			90,956			76,452			5	%		12	%
Provision for income taxes		27,054			24,008			28,547			30,016			24,239			13	%		12	%
Net income	$	58,388		$	57,723		$	67,635		$	60,940		$	52,213			1	%		12	%

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

NM - Not meaningful

* Amount is less than one percent.

(a)	4Q16 includes $2.7 million of loss accruals related to legal matters; 3Q16 includes a $4.3 million reversal of loss accruals related to legal matters; 2Q16 includes $22.0 million of loss accruals related to legal matters.
(b)	4Q16 includes a $1.5 million gain related to the reversal of a contingency accrual associated with prior sales of MSR; 3Q16 includes $4.4 million of gains primarily related to recoveries associated with prior legacy mortgage servicing sales.
(c)	4Q16 includes $2.0 million of loss accruals related to legal matters; 3Q16 includes $4.5 million of loss accruals related to legal matters; 2Q16 includes a $31.4 million reversal of repurchase and foreclosure provision as a result of the settlements/recoveries of certain repurchase claims, somewhat offset by $4.0 million of loss accruals related to legal matters.

FHN REGIONAL BANKING

Quarterly, Unaudited

																1Q17 Changes vs.
	1Q17			4Q16			3Q16			2Q16			1Q16			4Q16			1Q16

Income Statement (thousands)
Net interest income	$	193,389		$	200,716		$	190,508		$	178,318		$	172,312			(4	)%		12	%
Provision for loan losses		3,098			4,692			8,544			10,883			14,767			(34	)%		(79	)%
Noninterest income:
NSF / Overdraft fees (a)		6,316			9,707			10,076			8,905			9,576			(35	)%		(34	)%
Cash management fees		9,196			8,659			7,947			8,612			8,760			6	%		5	%
Debit card income		3,407			3,516			3,496			3,464			3,221			(3	)%		6	%
Other		4,327			4,291			4,215			4,466			4,288			1	%		1	%
Total deposit transactions and cash management		23,246			26,173			25,734			25,447			25,845			(11	)%		(10	)%
Brokerage, management fees and commissions		11,906			11,003			10,828			10,665			10,415			8	%		14	%
Trust services and investment management		6,680			7,056			6,900			7,239			6,569			(5	)%		2	%
Bankcard income (b)		5,342			6,230			6,151			6,432			5,132			(14	)%		4	%
Other service charges		2,618			2,596			2,591			2,579			2,318			1	%		13	%
Miscellaneous revenue (c)		9,184			10,266			12,924			8,913			8,997			(11	)%		2	%
Total noninterest income		58,976			63,324			65,128			61,275			59,276			(7	)%		(1	)%
Noninterest expense:
Employee compensation, incentives, and benefits		57,990			58,627			56,440			53,413			52,173			(1	)%		11	%
Other (d)		90,075			102,224			88,610			111,111			93,226			(12	)%		(3	)%
Total noninterest expense		148,065			160,851			145,050			164,524			145,399			(8	)%		2	%
Income before income taxes	$	101,202		$	98,497		$	102,042		$	64,186		$	71,422			3	%		42	%
PPNR (e)		104,300			103,189			110,586			75,069			86,189			1	%		21	%
Efficiency ratio (f)		58.67	%		60.92	%		56.74	%		68.67	%		62.78	%

Balance Sheet (millions)
Average loans	$	17,199		$	17,692		$	16,844		$	15,859		$	15,224			(3	)%		13	%
Average other earning assets		34			37			46			42			47			(8	)%		(28	)%
Total average earning assets		17,233			17,729			16,890			15,901			15,271			(3	)%		13	%
Total average deposits		19,660			19,022			18,604			18,367			18,053			3	%		9	%
Total period-end deposits		20,541			19,348			18,742			18,674			18,534			6	%		11	%
Total period-end assets		18,329			18,771			18,562			17,434			16,280			(2	)%		13	%
Net interest margin (g)		4.61	%		4.57	%		4.55	%		4.57	%		4.60	%
Net interest spread		3.57			3.52			3.46			3.44			3.42
Loan yield		3.78			3.68			3.61			3.59			3.57
Deposit average rate		0.21			0.16			0.15			0.15			0.15

Key Statistics
Financial center locations		162			162			162			162			174			*			(7	)%

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

* Amount is less than one percent.

(a)	Variability is driven by changes in consumer behavior and seasonality; 1Q17 decrease driven by seasonality and a modification of billing practices.
(b)	2Q16 increase driven by a significant new relationship.
(c)	3Q16 includes a $1.8 million gain on the sales of properties.
(d)	4Q16 includes $2.7 million of loss accruals related to legal matters; 3Q16 includes a reversal of loss accruals related to legal matters of $4.3 million; 2Q16 includes $22.0 million of loss accruals related to legal matters; 1Q16 includes $3.7 million of impairment related to branch closures.
(e)	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.
(f)	Noninterest expense divided by total revenue.
(g)	Net interest margin is computed using total net interest income adjusted for FTE assuming a statutory federal income tax rate of 35 percent and, where applicable, state income taxes.

FHN FIXED INCOME

Quarterly, Unaudited

																1Q17 Changes vs.
	1Q17			4Q16			3Q16			2Q16			1Q16			4Q16			1Q16

Income Statement (thousands)
Net interest income	$	1,151		$	2,541		$	2,411		$	3,146		$	2,667			(55	)%		(57	)%
Noninterest income:
Fixed income product revenue		42,727			43,794			59,003			69,279			57,583			(2	)%		(26	)%
Other (a)		8,095			8,267			13,070			8,804			9,539			(2	)%		(15	)%
Total noninterest income		50,822			52,061			72,073			78,083			67,122			(2	)%		(24	)%
Noninterest expense		48,685			48,726			59,423			62,802			58,623			*			(17	)%
Income before income taxes	$	3,288		$	5,876		$	15,061		$	18,427		$	11,166			(44	)%		(71	)%

Efficiency ratio (b)		93.67	%		89.24	%		79.78	%		77.31	%		84.00	%
Fixed income product average daily revenue	$	689		$	718		$	922		$	1,082		$	944			(4	)%		(27	)%

Balance Sheet (millions)
Average trading inventory	$	927		$	1,281		$	1,153		$	1,267		$	1,138			(28	)%		(19	)%
Average other earning assets		703			818			831			893			822			(14	)%		(14	)%
Total average earning assets		1,630			2,099			1,984			2,160			1,960			(22	)%		(17	)%
Total period-end assets		2,395			1,817			2,516			2,540			2,361			32	%		1	%
Net interest margin (c)		0.33	%		0.57	%		0.55	%		0.64	%		0.63	%

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

*	Amount is less than one percent.
(a)	3Q16 increase driven by higher fees from loan and derivative sales.
(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

																1Q17 Changes vs.
	1Q17			4Q16			3Q16			2Q16			1Q16			4Q16			1Q16

Income Statement (thousands)
Net interest income/(expense)	$	(14,100	)	$	(17,500	)	$	(18,193	)	$	(15,847	)	$	(14,363	)		19	%		2	%
Noninterest income excluding securities gains/(losses)		5,432			4,802			5,335			4,810			4,149			13	%		31	%
Securities gains/(losses), net		44			(132	)		(201	)		99			1,574			NM			(97	)%
Noninterest expense (a)		16,880			14,593			14,929			15,930			13,461			16	%		25	%
Loss before income taxes	$	(25,504	)	$	(27,423	)	$	(27,988	)	$	(26,868	)	$	(22,101	)		7	%		(15	)%

Average Balance Sheet (millions)
Average loans	$	80		$	86		$	91		$	96		$	103			(7	)%		(22	)%
Total earning assets	$	6,122		$	4,795		$	4,617		$	4,576		$	5,093			28	%		20	%
Net interest margin (b)		(0.96	)%		(1.44	)%		(1.55	)%		(1.40	)%		(1.14	)%

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

NM - Not meaningful

(a)	2Q16 includes $2.5 million of negative valuation adjustments associated with derivatives related to prior sales of Visa Class B shares.
(b)	Net interest margin is computed using total net interest income adjusted for FTE assuming a statutory federal income tax rate of 35 percent and, where applicable, state income taxes.

FHN NON-STRATEGIC

Quarterly, Unaudited

																1Q17 Changes vs.
	1Q17			4Q16			3Q16			2Q16			1Q16			4Q16			1Q16

Income Statement (thousands)
Net interest income	$	9,268		$	9,794		$	10,469		$	10,647		$	11,458			(5	)%		(19	)%
Provision/(provision credit) for loan losses		(4,098	)		(4,692	)		(4,544	)		(6,883	)		(11,767	)		13	%		65	%
Noninterest income (a)		1,665			4,022			6,210			1,247			2,184			(59	)%		(24	)%
Noninterest expense (b)		8,575			13,727			14,156			(16,434	)		9,444			(38	)%		(9	)%
Income/(loss) before income taxes	$	6,456		$	4,781		$	7,067		$	35,211		$	15,965			35	%		(60	)%

Average Balance Sheet (millions)
Loans	$	1,535		$	1,636		$	1,744		$	1,856		$	1,967			(6	)%		(22	)%
Loans held-for-sale		93			96			100			103			106			(3	)%		(12	)%
Trading securities		2			3			3			3			4			(33	)%		(50	)%
Allowance for loan losses		(48	)		(50	)		(53	)		(59	)		(69	)		(4	)%		(30	)%
Other assets		34			37			47			46			34			(8	)%		*
Total assets		1,616			1,722			1,841			1,949			2,042			(6	)%		(21	)%
Net interest margin (c)		2.29	%		2.25	%		2.26	%		2.17	%		2.21	%
Efficiency ratio (d)		78.43	%		99.36	%		84.87	%		NM			69.23	%

Certain previously reported amounts have been reclassified to agree with current presentation.
NM - Not meaningful
* Amount is less than one percent.
(a)	4Q16 includes a $1.5 million gain related to the reversal of a contingency accrual associated with prior sales of MSR; 3Q16 includes $4.4 million of gains primarily related to recoveries associated with prior legacy mortgage servicing sales.
(b)	4Q16 includes $2.0 million of loss accruals related to legal matters; 3Q16 includes $4.5 million of loss accruals related to legal matters; 2Q16 includes a $31.4 million reversal of repurchase and foreclosure provision as a result of the settlements/recoveries of certain repurchase claims, somewhat offset by $4.0 million of loss accruals related to legal matters.
(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

																1Q17 Changes vs.
(Dollars in thousands)	1Q17			4Q16			3Q16			2Q16			1Q16			4Q16			1Q16

Allowance for Loan Losses Walk-Forward
Beginning reserve	$	202,068		$	201,557		$	199,807		$	204,034		$	210,242			*			(4	)%
Provision/(provision credit) for loan losses		(1,000	)		—			4,000			4,000			3,000			NM			NM
Charge-offs		(8,413	)		(11,369	)		(10,362	)		(18,296	)		(17,612	)		(26	)%		(52	)%
Recoveries		9,313			11,880			8,112			10,069			8,404			(22	)%		11	%
Ending balance	$	201,968		$	202,068		$	201,557		$	199,807		$	204,034			*			(1	)%
Reserve for unfunded commitments		5,284			5,312			4,802			5,351			5,495			(1	)%		(4	)%
Total allowance for loan losses plus reserve for unfunded commitments	$	207,252		$	207,380		$	206,359		$	205,158		$	209,529			*			(1	)%

Allowance for Loan Losses
Regional Banking	$	155,968		$	154,082		$	151,397		$	146,351		$	143,088			1	%		9	%
Non-Strategic		46,000			47,986			50,160			53,456			60,946			(4	)%		(25	)%
Total allowance for loan losses	$	201,968		$	202,068		$	201,557		$	199,807		$	204,034			*			(1	)%

Nonperforming Assets
Regional Banking
Nonperforming loans	$	49,462		$	50,653		$	50,267		$	60,754		$	72,323			(2	)%		(32	)%
Foreclosed real estate (a)		4,422			5,081			5,811			7,031			11,045			(13	)%		(60	)%
Total Regional Banking	$	53,884		$	55,734		$	56,078		$	67,785		$	83,368			(3	)%		(35	)%
Non-Strategic
Nonperforming loans	$	92,409		$	93,808		$	100,572		$	114,947		$	120,335			(1	)%		(23	)%
Nonperforming loans held-for-sale after fair value adjustments		7,633			7,741			7,791			8,195			8,568			(1	)%		(11	)%
Foreclosed real estate (a)		5,837			6,154			7,867			7,119			6,415			(5	)%		(9	)%
Total Non-Strategic	$	105,879		$	107,703		$	116,230		$	130,261		$	135,318			(2	)%		(22	)%
Corporate
Nonperforming loans	$	1,521		$	1,186		$	1,211		$	896		$	927			28	%		64	%
Total nonperforming assets (a)	$	161,284		$	164,623		$	173,519		$	198,942		$	219,613			(2	)%		(27	)%

Net Charge-Offs
Regional Banking	$	1,211		$	2,007		$	3,499		$	7,620		$	9,265			(40	)%		(87	)%
Non-Strategic		(2,111	)		(2,518	)		(1,249	)		607			(57	)		16	%		NM
Total net charge-offs/(recoveries)	$	(900	)	$	(511	)	$	2,250		$	8,227		$	9,208			(76	)%		NM

Consolidated Key Ratios (b)
30+ Delinq. % (c)		0.39	%		0.34	%		0.32	%		0.32	%		0.54	%
NPL %		0.75			0.74			0.78			0.95			1.10
NPA %		0.80			0.80			0.85			1.03			1.20
Net charge-offs %		NM			NM			0.05			0.19			0.21
Allowance / loans %		1.06			1.03			1.03			1.07			1.16
Allowance / NPL		1.41	x		1.39	x		1.33	x		1.13	x		1.05	x
Allowance / NPA		1.31	x		1.29	x		1.22	x		1.05	x		0.97	x
Allowance / net charge-offs		NM			NM			22.51	x		6.04	x		5.51	x

Other
Loans past due 90 days or more (d)	$	37,156		$	38,299		$	36,562		$	34,175		$	36,958			(3	)%		1	%
Guaranteed portion (d)		14,569			14,664			13,645			13,822			16,279			(1	)%		(11	)%
Period-end loans, net of unearned income (millions)		19,090			19,590			19,556			18,589			17,575			(3	)%		9	%

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)	30+ Delinquency % includes all accounts delinquent more than one month and still accruing interest.
(d)	Includes loans held-for-sale.

FHN ASSET QUALITY: CONSOLIDATED

Quarterly, Unaudited

																1Q17 Changes vs.
	1Q17			4Q16			3Q16			2Q16			1Q16			4Q16			1Q16

Key Portfolio Details
C&I
Period-end loans ($ millions)	$	11,704		$	12,148		$	12,118		$	11,179		$	10,239			(4	)%		14	%
30+ Delinq. % (a) (b) (c)		0.17	%		0.08	%		0.05	%		0.04	%		0.37	%
NPL %		0.26			0.27			0.25			0.27			0.38
Charge-offs % (qtr. annualized)		NM			NM			0.04			0.24			0.23
Allowance / loans %		0.80	%		0.74	%		0.72	%		0.72	%		0.79	%
Allowance / charge-offs		NM			NM			17.23	x		3.21	x		3.50	x

Commercial Real Estate
Period-end loans ($ millions)	$	2,173		$	2,136		$	2,066		$	1,969		$	1,849			2	%		18	%
30+ Delinq. % (a)		0.03	%		0.01	%		0.18	%		0.15	%		0.18	%
NPL %		0.11			0.13			0.17			0.40			0.51
Charge-offs % (qtr. annualized)		NM			0.09			NM			NM			0.10
Allowance / loans %		1.42	%		1.59	%		1.57	%		1.54	%		1.39	%
Allowance / charge-offs		NM			17.56	x		NM			NM			15.16	x

Consumer Real Estate
Period-end loans ($ millions)	$	4,457		$	4,524		$	4,578		$	4,641		$	4,690			(1	)%		(5	)%
30+ Delinq. % (a)		0.86	%		0.93	%		0.86	%		0.80	%		0.82	%
NPL %		1.83			1.83			1.95			2.31			2.43
Charge-offs % (qtr. annualized)		NM			NM			NM			0.04			0.10
Allowance / loans %		1.11	%		1.11	%		1.16	%		1.27	%		1.44	%
Allowance / charge-offs		NM			NM			NM			29.40	x		14.06	x

Permanent Mortgage
Period-end loans ($ millions)	$	409		$	423		$	436		$	439		$	443			(3	)%		(8	)%
30+ Delinq. % (a)		2.57	%		2.36	%		2.46	%		2.21	%		2.50	%
NPL %		7.05			6.42			6.67			6.97			6.83
Charge-offs % (qtr. annualized)		NM			NM			0.12			NM			NM
Allowance / loans %		3.88	%		3.85	%		3.80	%		4.01	%		4.24	%
Allowance / charge-offs		NM			NM			31.11	x		NM			NM

Credit Card and Other
Period-end loans ($ millions)	$	347		$	359		$	358		$	361		$	354			(3	)%		(2	)%
30+ Delinq. % (a)		1.00	%		1.17	%		1.04	%		1.19	%		1.13	%
NPL %		0.04			0.04			0.04			0.20			0.38
Charge-offs % (qtr. annualized)		3.08			3.25			2.95			2.73			2.86
Allowance / loans %		3.58	%		3.39	%		3.48	%		3.30	%		3.23	%
Allowance / charge-offs		1.16	x		1.04	x		1.17	x		1.21	x		1.13	x

NM - Not meaningful
(a)	30+ Delinquency % includes all accounts delinquent more than one month and still accruing interest.
(b)	1Q16 ratio was driven by regional bank C&I but over half were favorably resolved in early second quarter 2016.
(c)	1Q17 increase was primarily driven by a few credits within the C&I portfolio, one of which has become current in early second quarter 2017.

FHN ASSET QUALITY: REGIONAL BANKING

Quarterly, Unaudited

																1Q17 Changes vs.
	1Q17			4Q16			3Q16			2Q16			1Q16			4Q16			1Q16

Total Regional Banking
Period-end loans ($ millions)	$	17,537		$	17,935		$	17,789		$	16,703		$	15,570			(2	)%		13	%
30+ Delinq. % (a)		0.24	%		0.18	%		0.17	%		0.16	%		0.39	%
NPL %		0.28			0.28			0.28			0.36			0.46
Charge-offs % (qtr. annualized)		0.03			0.05			0.08			0.19			0.24
Allowance / loans %		0.89	%		0.86	%		0.85	%		0.88	%		0.92	%
Allowance / charge-offs		31.75	x		19.30	x		10.88	x		4.78	x		3.84	x

Key Portfolio Details
C&I
Period-end loans ($ millions)	$	11,284		$	11,728		$	11,698		$	10,759		$	9,818			(4	)%		15	%
30+ Delinq. % (a) (b) (c)		0.18	%		0.08	%		0.05	%		0.04	%		0.37	%
NPL %		0.24			0.24			0.22			0.24			0.36
Charge-offs % (qtr. annualized)		NM			NM			0.05			0.25			0.24
Allowance / loans %		0.81	%		0.75	%		0.73	%		0.74	%		0.81	%
Allowance / charge-offs		NM			NM			16.76	x		3.23	x		3.48	x

Commercial Real Estate
Period-end loans ($ millions)	$	2,173		$	2,136		$	2,066		$	1,969		$	1,849			2	%		18	%
30+ Delinq. % (a)		0.03	%		0.01	%		0.18	%		0.15	%		0.18	%
NPL %		0.11			0.13			0.17			0.40			0.51
Charge-offs % (qtr. annualized)		NM			0.11			NM			NM			0.10
Allowance / loans %		1.42	%		1.59	%		1.57	%		1.54	%		1.39	%
Allowance / charge-offs		NM			14.28	x		NM			NM			14.23	x

Consumer Real Estate
Period-end loans ($ millions)	$	3,655		$	3,643		$	3,608		$	3,577		$	3,531			*			4	%
30+ Delinq. % (a)		0.48	%		0.49	%		0.46	%		0.40	%		0.46	%
NPL %		0.55			0.52			0.57			0.73			0.76
Charge-offs % (qtr. annualized)		NM			—			0.01			NM			0.06
Allowance / loans %		0.53	%		0.52	%		0.56	%		0.68	%		0.75	%
Allowance / charge-offs		NM			NM			57.14	x		NM			11.78	x

Credit Card, Permanent Mortgage, and Other
Period-end loans ($ millions)	$	425		$	428		$	417		$	398		$	372			(1	)%		14	%
30+ Delinq. % (a)		0.90	%		1.08	%		0.97	%		1.16	%		1.18	%
NPL %		0.09			0.09			0.10			0.10			0.28
Charge-offs % (qtr. annualized)		2.55			2.79			2.64			2.54			2.82
Allowance / loans %		3.36	%		3.09	%		3.19	%		3.07	%		3.06	%
Allowance / charge-offs		1.33	x		1.12	x		1.23	x		1.25	x		1.10	x

ASSET QUALITY: CORPORATE

Permanent Mortgage
Period-end loans ($ millions)	$	67		$	71		$	79		$	85		$	92			(6	)%		(27	)%
30+ Delinq. % (a)		4.25	%		4.37	%		4.37	%		4.92	%		3.66	%
NPL %		2.25			1.66			1.54			1.06			1.00
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 ratio were favorably resolved in early second quarter 2016.
(c)	1Q17 increase was primarily driven by a few credits within the C&I portfolio, one of which has become current in early second quarter 2017.

FHN ASSET QUALITY: NON-STRATEGIC

Quarterly, Unaudited

																1Q17 Changes vs.
	1Q17			4Q16			3Q16			2Q16			1Q16			4Q16			1Q16

Total Non-Strategic
Period-end loans ($ millions)	$	1,486		$	1,584		$	1,688		$	1,801		$	1,913			(6	)%		(22	)%
30+ Delinq. % (a)		1.89	%		1.94	%		1.76	%		1.56	%		1.59	%
NPL %		6.22			5.92			5.96			6.38			6.29
Charge-offs % (qtr. annualized)		NM			NM			NM			0.13			NM
Allowance / loans %		3.10	%		3.03	%		2.97	%		2.97	%		3.19	%
Allowance / charge-offs		NM			NM			NM			21.90	x		NM

Key Portfolio Details
Commercial
Period-end loans ($ millions)	$	420		$	420		$	420		$	420		$	421			*			*
30+ Delinq. % (a)		—	%		—	%		—	%		—	%		0.23	%
NPL %		0.97			0.98			0.99			1.00			0.83
Charge-offs % (qtr. annualized)		NM			NM			NM			NM			0.03
Allowance / loans %		0.35	%		0.33	%		0.33	%		0.33	%		0.34	%
Allowance / charge-offs		NM			NM			NM			NM			10.11	x

Consumer Real Estate
Period-end loans ($ millions)	$	802		$	881		$	970		$	1,064		$	1,160			(9	)%		(31	)%
30+ Delinq. % (a)		2.60	%		2.76	%		2.34	%		2.16	%		1.91	%
NPL %		7.65			7.26			7.09			7.59			7.52
Charge-offs % (qtr. annualized)		NM			NM			NM			0.26			0.21
Allowance / loans %		3.80	%		3.56	%		3.40	%		3.27	%		3.51	%
Allowance / charge-offs		NM			NM			NM			12.14	x		16.09	x

Permanent Mortgage
Period-end loans ($ millions)	$	258		$	275		$	290		$	308		$	322			(6	)%		(20	)%
30+ Delinq. % (a)		2.78	%		2.29	%		2.36	%		1.66	%		2.22	%
NPL %		10.45			9.32			9.48			9.51			8.95
Charge-offs % (qtr. annualized)		NM			NM			0.18			NM			NM
Allowance / loans %		5.45	%		5.49	%		5.36	%		5.53	%		5.70	%
Allowance / charge-offs		NM			NM			29.16	x		NM			NM

Other Consumer
Period-end loans ($ millions)	$	6		$	8		$	8		$	9		$	10			(25	)%		(40	)%
30+ Delinq. % (a)		1.84	%		1.73	%		1.62	%		1.06	%		1.23	%
NPL %		1.90			1.82			1.83			7.98			7.70
Charge-offs % (qtr. annualized)		NM			NM			NM			1.15			NM
Allowance / loans %		0.08	%		2.26	%		2.50	%		2.83	%		4.63	%
Allowance / charge-offs		NM			NM			NM			2.41	x		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.

FHN: PORTFOLIO METRICS
Unaudited


C&I Portfolio: $11.7 Billion (61.3% of Total Loans) as of March 31, 2017
	% OS
General Corporate, Commercial, and Business Banking Loans	81	%
Loans to Mortgage Companies	13	%
Trust Preferred Loans	3	%
Bank Holding Company Loans	3	%

Consumer Real Estate (primarily Home Equity) Portfolio: $4.5 Billion (23.3% of Total Loans)

Origination LTV and FICO for Portfolio as of March 31, 2017	Loan-to-Value
(excludes whole loan insurance)	<=60%			>60% - <=80%			>80% - 90%			>90%
FICO score greater than or equal to 740		11	%		24	%		16	%		13	%
FICO score 720-739		1	%		4	%		4	%		3	%
FICO score 700-719		1	%		3	%		3	%		2	%
FICO score 660-699		1	%		4	%		3	%		2	%
FICO score 620-659		—	%		1	%		1	%		1	%
FICO score less than 620		—	%		1	%		—	%		1	%

Origination LTV and FICO for Portfolio - Regional Bank as of March 31, 2017	Loan-to-Value
(excludes whole loan insurance)	<=60%			>60% - <=80%			>80% - 90%			>90%
FICO score greater than or equal to 740		11	%		25	%		17	%		15	%
FICO score 720-739		1	%		4	%		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		—	%		—	%		—	%		—	%

Origination LTV and FICO for Portfolio - Non-Strategic as of March 31, 2017	Loan-to-Value
(excludes whole loan insurance)	<=60%			>60% - <=80%			>80% - 90%			>90%
FICO score greater than or equal to 740		8	%		19	%		15	%		5	%
FICO score 720-739		2	%		5	%		6	%		2	%
FICO score 700-719		2	%		6	%		6	%		2	%
FICO score 660-699		2	%		5	%		5	%		4	%
FICO score 620-659		—	%		1	%		2	%		1	%
FICO score less than 620		—	%		—	%		—	%		2	%

Consumer Real Estate Portfolio Detail:

			Origination Characteristics
Vintage	Balances ($B)		W/A Age (mo.)		CLTV			FICO			% TN			% 1st lien
pre-2008	$	1.0		135		80	%		726			21	%		21	%
2008	$	0.2		106		75	%		744			74	%		51	%
2009	$	0.1		94		72	%		745			86	%		59	%
2010	$	0.1		80		78	%		752			92	%		71	%
2011	$	0.2		68		76	%		758			89	%		85	%
2012	$	0.5		57		77	%		764			89	%		92	%
2013	$	0.4		46		78	%		755			86	%		86	%
2014	$	0.4		33		82	%		757			86	%		90	%
2015	$	0.6		20		80	%		758			81	%		88	%
2016	$	0.8		8		80	%		761			84	%		90	%
2017	$	0.2		2		81	%		758			75	%		91	%
Total	$	4.5		60		79	%		750	(a)		70	%		71	%

(a)	750 average portfolio origination FICO; 748 weighted average portfolio FICO (refreshed).

FHN NON-GAAP TO GAAP RECONCILIATION

Quarterly, Unaudited


(Dollars and shares in thousands, except per share data)		1Q17			4Q16			3Q16			2Q16			1Q16
Tangible Common Equity (Non-GAAP)
(A) Total equity (GAAP)	$	2,740,460		$	2,705,084		$	2,744,582		$	2,691,924		$	2,642,948
Less: Noncontrolling interest (a)		295,431			295,431			295,431			295,431			295,431
Less: Preferred stock (a)		95,624			95,624			95,624			95,624			95,624
(B) Total common equity	$	2,349,405		$	2,314,029		$	2,353,527		$	2,300,869		$	2,251,893
Less: Intangible assets (GAAP) (b)		211,156			212,388			213,688			214,923			216,222
(C) Tangible common equity (Non-GAAP)	$	2,138,249		$	2,101,641		$	2,139,839		$	2,085,946		$	2,035,671

Tangible Assets (Non-GAAP)
(D) Total assets (GAAP)	$	29,618,600		$	28,555,231		$	28,449,222		$	27,541,070		$	26,963,682
Less: Intangible assets (GAAP) (b)		211,156			212,388			213,688			214,923			216,222
(E) Tangible assets (Non-GAAP)	$	29,407,444		$	28,342,843		$	28,235,534		$	27,326,147		$	26,747,460

Average Tangible Common Equity (Non-GAAP)
(F) Average total equity (GAAP)	$	2,722,668		$	2,746,828		$	2,718,319		$	2,655,488		$	2,644,374
Less: Average noncontrolling interest (a)		295,431			295,431			295,431			295,431			295,431
Less: Average preferred stock (a)		95,624			95,624			95,624			95,624			95,624
(G) Total average common equity	$	2,331,613		$	2,355,773		$	2,327,264		$	2,264,433		$	2,253,319
Less: Average intangible assets (GAAP) (b)		211,757			213,019			214,260			215,556			216,855
(H) Average tangible common equity (Non-GAAP)	$	2,119,856		$	2,142,754		$	2,113,004		$	2,048,877		$	2,036,464

Annualized Net Income Available to Common Shareholders
(I) Net income available to common shareholders (annualized) (GAAP)	$	219,073		$	212,017		$	251,434		$	227,395		$	192,299

Period-end Shares Outstanding
(J) Period-end shares outstanding		233,883			233,624			233,235			232,019			232,547

Ratios
(I)/(G) Return on average common equity (“ROE”) (GAAP)		9.40	%		9.00	%		10.80	%		10.04	%		8.53	%
(I)/(H) Return on average tangible common equity (“ROTCE”) (Non-GAAP)		10.33	%		9.89	%		11.90	%		11.10	%		9.44	%
(A)/(D) Total equity to total assets (GAAP)		9.25	%		9.47	%		9.65	%		9.77	%		9.80	%
(C)/(E) Tangible common equity to tangible assets (“TCE/TA”) (Non-GAAP)		7.27	%		7.42	%		7.58	%		7.63	%		7.61	%
(B)/(J) Book value per common share (GAAP)	$	10.05		$	9.90		$	10.09		$	9.92		$	9.68
(C)/(J) Tangible book value per common share (Non-GAAP)	$	9.14		$	9.00		$	9.17		$	8.99		$	8.75

(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 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 2017 Earnings April 13, 2017

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 1Q17 Accomplishments All comparisons are 1Q16 vs 1Q17 unless otherwise noted. 1 ROA and ROTCE are annualized numbers. ROTCE is Non - GAAP and is reconciled to ROE in the appendix. Segment revenue, expense, asset and equity levels reflect those which are specifically identifiable or which are allocated ba se d on an internal allocation method. 2 Current quarter is an estimate. Diluted EPS $0.23 ROA 1 0.82% CET1 2 10.2% ROTCE 1 10.3% ▪ Efficiency ratio improvement of 198 bps to 72.5% ▪ Regional Banking efficiency ratio at 58.7% or 411 bps improvement ▪ Revenue stable, while expenses declined 2% ▪ Regional Banking revenue up 9% vs expense increase of 2% Moving Toward Bonefish Profitability Targets Capital Deployment ▪ Net income available to common shareholders up 13%, diluted EPS up 15% ▪ ROTCE 1 at 10.3%, up 89 bps ▪ Regional Banking ROA 1 at 1.46% and ROE 1 of 23% ▪ Net interest income growth of 10% ▪ Average loans up 9% and average deposits up 14% ▪ Regional Banking average loan growth of 13% ▪ Fixed income product average daily revenue of $689k ▪ Coastal Securities acquisition closed on April 3, 2017 ▪ Increased quarterly common dividend 29% Positive Operating Leverage

FINANCIAL RESULTS 4

1Q17 Consolidated Financial Results 5 Net Interest Income Fee Income Expense $ in millions Financial Results 1Q17 $190 Loan Loss Provision $117 $222 $(1) $54 1Q17 vs +10% - 13% - 2% NM +13% 4Q16 $196 $124 $238 $0 $53 1Q16 $172 $134 $227 $3 $48 4Q16 - 3% - 6% - 7% NM +1% 1Q16 Actuals ▪ Diluted EPS of $0.23 in 1Q17, steady LQ and up 15% YOY ▪ Continued strong balance sheet growth and meaningful positive operating leverage in the Regional Bank ▪ Fixed Income revenue muted, but remains a substantial source of fee income ▪ Continued excellent credit quality ▪ Pretax income up 5% LQ and up 12% YOY ▪ Revenue down 4% LQ, flat YOY ▪ NII YOY increase due to higher short - term rates and loan growth, LQ decrease from lower balances of loans to mortgage companies and fewer days in 1Q17 ▪ Expense down LQ and YOY from continued expense discipline ▪ Loan loss provision credit reflects overall stability in loan portfolio and continued run - off of non - strategic loans Net Income Available to Common Shareholders (NIAC) Numbers may not add to total due to rounding. NM - Not Meaningful. * - less than 1%. LQ – Linked Quarter. YOY – Year over Year. $85 +12% $82 $76 +5% Pretax Income $18.8 +9% $19.4 $17.3 - 3% Average Loans ($B) $22.8 +14% $22.3 $19.9 +2% Average Deposits ($B) Total Revenue $307 * $320 $306 - 4% $0.23 +15% $0.23 $0.20 * EPS

6 Net Interest Income Sensitivity Impact 2 Consolidated Net Interest Income and Net Interest Margin Positive Year - over - Year Balance Sheet Trends ▪ NII up $18mm or 10% YOY, down 3% LQ ▪ NIM at 2.92%, up 4 bps YOY, down 8 bps LQ ▪ NIM decrease LQ largely related to deposit growth and excess cash held to fund Coastal Securities acquisition ▪ Average loans up 9% YOY and down 3% LQ ▪ Floating rate loans comprise 67% of loan portfolio ▪ Further moderated asset sensitivity via additional receive - fixed portfolio loan swaps NIM Stability and Loan Growth Drive NII Increase NII and NIM Linked - Quarter Change Drivers Numbers may not add to total due to rounding. LQ – Linked Quarter. YOY - Year over Year. 1 Other includes the impact of lower Fixed Income inventories. 2 NII sensitivity analysis uses FHN’s balance sheet as of 1Q17. Bps impact assumes increase in Fed Funds rate. $157 $167 $164 $167 $172 $176 $185 $196 $190 2.50% 2.75% 3.00% 3.25% $100 $125 $150 $175 $200 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 NII (left axis) NIM (right axis) $200mm NII +21% ($ in millions) NII NIM 4Q16 $195.6 3.00% Rates/ Asset Sensitivity +$5.7 +9bps Higher Cash Balances +$0.1 - 16 bps Lower Loans to Mortgage Companies - $8.9 - 3bps Higher Commercial Loan Volume +$2.3 - 1bp Fewer Days in 1Q - $3.2 - Other 1 - $1.8 +3bps 1Q17 $189.7 2.92% +1.1% +$9mm +2.3% +$18mm +4.6% +$36mm 0% 1% 2% 3% 4% 5% +25bps +50bps +100bps

Regional Banking Financial Results Strong Year - over - Year Balance Sheet, NII and PPNR Growth 7 Net Interest Income Fee Income Expense $ in millions Financial Results 1Q17 $193 $59 $148 1Q17 vs +12% * +2% 4Q16 $201 $63 $161 1Q16 $172 $59 $145 4Q16 - 4% - 7% - 8% 1Q16 Actuals Numbers may not add to total due to rounding. LQ – Linked Quarter. YOY - Year over Year. * - less than 1%. 1 Pre - provision net revenue is not a GAAP number but is used in regulatory stress test reporting. The presentation of PPNR follows the regulatory definition. Net Income $65 $63 $46 +40% +2% Average Loans ($B) Average Deposits ($B) $17.2 $17.7 $15.2 +13% - 3% $19.7 $19.0 $18.1 +9% +3% Loan Loss Provision $3 - 79% $5 $15 - 34% PPNR 1 $104 $103 $86 +21% +1% Pre - Tax Income $101 $98 $71 +42% +3% Total Revenue $252 +9% $264 $232 - 4% ▪ PPNR up 1% LQ and up 21% YOY ▪ Efficiency ratio of 58.7% in 1Q17; improvement of 225 bps LQ and 411 bps YOY ▪ Total revenue up 9% YOY, down 4% LQ ▪ YOY NII growth driven by increase in short - term rates and higher commercial loans, LQ decrease due to lower loans to mortgage companies ▪ Average loans up 13% YOY from higher commercial loans, down 3% LQ ▪ Average deposits up 9% YOY and up 3% LQ ▪ Loan loss provision reflects overall strength and stability in asset quality ▪ Net charge - offs of $1mm in 1Q17 vs $9mm in 1Q16 and $2mm in 4Q16

8 Profitable Growth Opportunities: Regional Banking Regional Banking Average Loan Growth by Lending Area Numbers may not add to total due to rounding. LQ – Linked Quarter. YOY - Year over Year. 1 Other includes Retail, Business Banking and the following specialty banking areas: Corporate, Correspondent, Energy, Franchis e F inance and Healthcare. $17.7 $17.2 $16.3 $16.5 $16.8 $17.0 $17.3 $17.5 $17.8 $18.0 4Q16 Loans to Mortgage Companies Other¹ ABL PC/WM CRE Commercial 1Q17 $18.0B $(901)mm $(9)mm $37mm $100mm $134mm $146mm ▪ Regional Banking average loan growth of 13% YOY and decline of 3% LQ ▪ Excluding Loans to Mortgage Companies, average loans up 14% YOY and 3% LQ ▪ Loans to Mortgage Companies average balance at $1.3B in 1Q17 vs $2.2B in 4Q16 and $1.2B in 1Q16 ▪ Continued strong loan growth in specialty banking areas and growth markets ▪ CRE up 7% and ABL up 2% LQ ▪ Middle TN up 4% and Houston up 10% LQ 1Q17 Average Regional Bank Commercial Loans Healthcare 3% Correspondent 3% Energy 1% Specialty Banking Areas Commercial Real Estate 16% Loans to Mortgage Companies 10% Franchise Finance 6% Commercial 35% Asset Based Lending 12% Corporate 7%

Fixed Income - FTN Financial Solid Fee Income Contribution 9 Fixed Income Revenue and Expense $0 $500 $1,000 $1,500 $0 $25 $50 $75 $100 1Q16 2Q16 3Q16 4Q16 1Q17 Revenue Expense Column1 ADR Left Axis: Right Axis: $100mm 1Q17 Daily Fixed Income Product Revenue 0 5 10 15 20 25 < $250 $250 - $500k $500 - $750K $750k - $1mm $1mm - $1.25mm $1.25mm+ Number of Days 1Q17 4Q16 ▪ Fixed income product average daily revenue (ADR) at $689k in 1Q17 vs $718k in 4Q16 ▪ Fixed income ADR performance reflects lower activity due to rate increases and relatively low levels of volatility ▪ Focused on investing in extensive fixed income distribution platform: ▪ Acquisition of Coastal Securities in 2Q17 substantially expands government guaranteed loan (“GGL”) products (SBA and USDA loans and securities) and contributes to municipal products growth strategy ▪ Strategic hires to increase market share $ in millions, except ADR Actuals 1Q17 vs Financial Results 1Q17 4Q16 1Q16 4Q16 1Q16 NII $1 $3 $3 - 55% - 57% Fee Income $51 $52 $67 - 2% - 24% Expense $49 $49 $59 * - 17% Pretax Income $3 $6 $11 - 44% - 71% Net Income $2 $4 $7 - 43% - 69% ADR $689k $718k $944k - 4% - 27% * - Less than 1%.

10 Improving Productivity & Efficiency 4Q16 – 1Q17 Consolidated Noninterest Expense by Item 4Q16 – 1Q17 Consolidated Noninterest Expense by Segment $238 $222 $200 $210 $220 $230 $240 4Q16 FHN Regional Banking Non- Strategic Fixed Income Corp. 1Q17 FHN $238 $222 $200 $210 $220 $230 $240 4Q16 FHN Litig./ Reg. Comp. Advert. /PR Software Legal Other¹ 1Q17 FHN $240mm $(12.8) $(5.2) $(0.04) $2.3 $(5.0) $(2.4) $(1.5) $(5.0) $(1.1) $(0.8) $240mm ▪ Focused on positive operating leverage ▪ Continued expense discipline across the organization ▪ Expense down LQ due to decrease in legal accruals, lower compensation and other expense items ▪ Ongoing investments in strategic hires in specialty banking areas, growth markets and technology ▪ Financial center count down 7% YOY with added emphasis on digital banking 1 Other includes declines in depreciation, travel & entertainment, supplies and other. Refer to the 1Q17 financial supplement f or additional detail.

11 Allowance to Loans Ratio by Segment 1.16% 1.07% 1.03% 1.03% 1.06% 0.92% 0.88% 0.85% 0.86% 0.89% 3.19% 2.97% 2.97% 3.03% 3.10% 0.0% 1.0% 2.0% 3.0% 4.0% 1Q16 2Q16 3Q16 4Q16 1Q17 Consolidated Regional Banking Non-Strategic Net Charge - Offs Asset Quality Stable Credit Trends Reflect Strong Underwriting Discipline -0.15% 0.00% 0.15% 0.30% -$5 $0 $5 $10 1Q16 2Q16 3Q16 4Q16 1Q17 NCOs $ Provision $ NCO %¹ $10mm ▪ Net recoveries of ~$1mm in 1Q17 vs net recoveries of ~$1mm in 4Q16 and net charge - offs of $9mm in 1Q16 ▪ Non - performing assets down 27% YOY and down 2% LQ ▪ 30+ delinquencies as a percentage of total loans at 0.39% on a consolidated basis and 0.24% in the Regional Bank ▪ Allowance to loan ratio up 3 bps LQ ▪ Non - Strategic loans comprise 8% of total average loans at 1Q17, down from 11% a year ago Numbers may not add to total due to rounding. LQ – Linked Quarter. YOY - Year over Year. 1 Net charge - off % is annualized. ($ in mm) 1Q16 2Q16 3Q16 4Q16 1Q17 Provision/ (Credit) $3 $4 $4 - $(1) Charge - offs $18 $18 $10 $11 $8 Recoveries $(8) $(10) $(8) $(12) $(9) Net Charge - Offs/ (Recoveries) $9 $8 $2 $(1) $(1) Asset Quality Highlights Net recoveries in 4Q16 and 1Q17

12 1Q17 Consolidated Long - Term Targets ROTCE 1 10.3% 15.0%+ ROA 1 0.82% 1.10 - 1.30% CET1 2 10.2% 8.0 - 9.0% NIM 1 2.92% 3.25 - 3.50% NCO / Average Loans 1 NM 0.20 - 0.60% Fee Income / Revenue 38% 40 - 50% Efficiency Ratio 72% 60 - 65% NM – Not Meaningful. 1 ROTCE, ROA, NIM, and NCO / Average Loans are annualized. ROTCE is a Non - GAAP number and 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 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 ▪ Maintain P ositive Operating Leverage ▪ Non - Strategic W ind - Down ▪ Infrastructure Reductions ▪ Branch Network Rationalization ▪ Utilize EP Tools to Enhance Customer/Product Profitability ▪ Sales Productivity and Process Improvements ▪ Continued Strong Underwriting and Pricing Discipline ▪ Dividends ▪ Share Buybacks ▪ M&A ▪ Fixed Income Platform Capacity ▪ Acquisition of Coastal Securities ▪ ADR at $1.0 - $1.5mm ▪ Leverage Specialty Areas ▪ Franchise Finance ▪ Specialty Healthcare ▪ Music ▪ Mid - Atlantic ▪ Middle TN ▪ Houston ▪ Latent Income Embedded in Asset - Sensitive Balance Sheet ▪ Strong Deposit Franchise ▪ Fed Funds Rate Increases Capture Interest Rate Opportunities More Controllable Less Controllable Other Potential Drivers ▪ Corporate Ta x Reform ▪ Economic Growth ▪ Regulatory Reform Building Blocks Provide Path to Bonefish Targets Building a Foundation for Long - Term Earnings Power

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 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 1Q 2Q 3Q 4Q 2016 Pre - Tax Amount Branch Impairment $(3.7)mm $(26.0)mm Litigation Accrual 1 Valuation Adjustment for Derivatives Related to Prior Sales of Visa Class B Shares Mortgage Repurchase Reserve Release $(2.5)mm $31.4mm $4.4mm Gain Primarily Related to Recoveries Associated with Prior Mortgage Servicing Sales Litigation Accrual 2 Litigation Accrual Reversal 3 $(4.5)mm $4.3mm Litigation Accrual 1 $(4.7)mm 2017 Pre - Tax Amount Refer to the financial supplement for further variance trend analysis. 1 Pre - tax loss associated with legal matters in the Regional Banking segment ($22.0mm in 2Q16 and $2.7mm in 4Q16) and Non - Strategi c segment ($4.0mm in 2Q16 and $2.0mm in 4Q16). 2 Pre - tax loss associated with legal matters in the Non - Strategic segment. 3 Pre - tax expense reversal associated with legal matters in the Regional Banking segment. None -

1Q17 Segment Highlights 17 Drivers and Impacts Net Income 1 $ in millions, except EPS 1Q17 Per Share Impact 2 Regional Banking Fixed Income Corporate 1 Non - Strategic Total 1 4Q16 $63 $4 $(17) $3 $53 1Q16 $46 $7 $(15) $10 $48 1Q17 $65 $2 $(17) $4 $54 $0.27 $0.01 $(0.07) $0.02 $0.23 ▪ Fixed income product ADR of $689k in 1Q17 vs $718k in 4Q16 ▪ Expense flat linked quarter due to lower variable compensation offset by FICA reset and increased legal fees ▪ Loan loss provision credit of $4mm in 1Q17 vs $5mm credit in 4Q16 ▪ 4Q16 includes $2.0mm legal accrual expense ▪ NII up 12% YOY and down 4% LQ ▪ Average loans up 13% YOY and down 3% LQ ▪ Expenses up 2% YOY and down 8% LQ ▪ 1Q16 includes $3.7mm branch impairment expense ▪ 4Q16 includes $2.7mm legal accrual expense ▪ Loan loss provision of $3mm in 1Q17 vs $5mm in 4Q16 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, reconciled to total EPS in the table. EPS impacts are calculated using 1Q17 segment net income divided by the 237 million average diluted shares outstanding.

18 1Q17 Credit Quality Summary by Portfolio Numbers may not add to total due to rounding. NM - Not meaningful. 1 Credit card, Permanent Mortgage, and Other. 2 Credit card, OTC, and Other Consumer. 3 Non - performing loan % excludes held - for - sale loans. 4 Net charge - offs are annualized. 5 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 $11,284 $2,173 $3,655 $425$17,537 $67 $420 $802 $258 $6 $19,090 30+ Delinquency 0.18% 0.03% 0.48% 0.90% 0.24% 4.25% - 2.60% 2.78% 1.84% 0.39% Dollars $20 $1 $18 $4 $42 $3 - $21 $7 $0 $74 NPL 3 % 0.24% 0.11% 0.55% 0.09% 0.28% 2.25% 0.97% 7.65% 10.45% 1.90% 0.75% Dollars $27 $2 $20 $0 $49 $2 $4 $61 $27 $0 $143 Net Charge-offs 4 % NM NM NM 2.55% 0.03% NM NM NM NM NM NM Dollars ($1) ($0) ($0) $3 $1 NM ($0) ($2) ($0) ($0) ($1) Allowance $92 $31 $19 $14 $156 NM $1 $30 $14 $0 $202 Allowance / Loans % 0.81% 1.42% 0.53% 3.36% 0.89% NM 0.35% 3.80% 5.45% 0.08% 1.06% Allowance / Charge-offs NM NM NM 1.33x 31.75x NM NM NM NM NM NM Commercial (C&I & Other) FHNC Consol Regional Banking Corporate 5 Non-Strategic

19 Select C&I and CRE Portfolio Metrics Numbers may not add to total due to rounding. ▪ $11.7B C&I portfolio , diversified by industry ▪ $2.2B CRE portfolio, diversified by geography and product type, comprising 11% of period - end consolidated loans ▪ Commercial (C&I and CRE) had net recoveries of $1.3mm for the quarter ▪ Gross charge - offs were $0.6mm with recoveries of $1.9mm $1.5 $2.2 $2.5 $2.0 $1.5 $1.2 $1.6 $2.2 $2.2 $1.3 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 1Q16 2Q16 3Q16 4Q16 1Q17 Period End Average C&I: Loans to Mortgage Companies CRE: Loan Type CRE: Collateral Type CRE: Geographic Distribution Retail 23% TN 28% NC 20% GA 13% Construction 24% Land 1% Mini - Perm/ Non - Construction 75% Industrial 11% Hospitality 13% Multi - Family 32% Other 18% TX 9% $2.5B Office 16% Land 1% SC 6%

20 Consumer Portfolio Overview $1.0 $0.6 $0.0 $0.5 $1.0 In Draw In Repayment HELOC Draw vs Repayment Balances Percent of Home Equity Portfolio: Months Left in Draw Period 20% 10% 6% 6% 7% 50% 0% 10% 20% 30% 40% 50% 0-12 13-24 25-36 37-48 49-60 >60 Home Equity Portfolio Characteristics 31.7% 32.7% 32.0% 35.1% 38.2% 30.0% 35.0% 40.0% $0.0 $0.4 $0.8 $1.2 1Q16 2Q16 3Q16 4Q16 1Q17 Period End Balance Constant Pre-Payment Rate (Right Axis) Non - Strategic Consumer Real Estate Run - Off $1.2B $1.0B Numbers may not add to total due to rounding. ($ in millions) 1Q16 2Q16 3Q16 4Q16 1Q17 Beginning Balance $115 $114 $67 $67 $65 Net Realized Losses $(1) $(16) $(0) $(1) $(0) Provision $0 $(31) $(0) $(1) $(0) Ending Balance $114 $67 $67 $65 $65 Mortgage Repurchase Reserve First Second Total Balance ($B) $3.2 $1.3 $4.5 Original FICO 756 737 750 Refreshed FICO 756 726 748 Original CLTV 78% 81% 79% Full Doc 96% 78% 91% Owner Occupied 96% 94% 96% HELOCS ($B) $0.6 $1.1 $1.6 Weighted Average HELOC Utilization 43% 50% 48%

Reconciliation to GAAP Financials 21 Slides in this presentation use non - GAAP information of return on tangible common equity. 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. ($ in millions) YOY Return on Tangible Common Equity (ROTCE) 1Q17 1Q16 Change Average Total Equity (GAAP) $2,723 $2,644 Less: Average Noncontrolling Interest (GAAP) $295 $295 Less: Preferred Stock (GAAP) $96 $96 Average Common Equity (GAAP) (a) $2,332 $2,253 Less: Average Intangible Assets (GAAP) $212 $217 Average Tangible Common Equity (Non-GAAP) (b) $2,120 $2,036 Annualized Net Income Available to Common (GAAP) (c) $219 $192 Return on Average Common Equity (ROE) (GAAP) (c/a) 9.4% 8.5% 0.86% Return on Average Tangible Common Equity (ROTCE) (Non-GAAP) (c/b) 10.3% 9.4% 0.89%

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