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

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8-K - 3Q17 8-K - FIRST HORIZON CORP	a3q17financialsupplement8-.htm

THIRD 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, excluding securities gains/(losses).

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 ("TBV") 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


Summary of Third Quarter 2017 Notable Items
Segment	Item	Income Statement	Amount Favorable/ (Unfavorable)	Comments
Corporate	Loss on Equity Securities repurchase	Other income: Gain/(loss) on extinguishment of debt	$(14.3) million	Pre-tax loss from the repurchase of equity securities previously included in a financing transaction

Corporate	Acquisition expenses	Noninterest expense: Various	$(8.2) million	Pre-tax acquisition-related expenses primarily associated with the Capital Bank Financial ("CBF") and Coastal Securities, Inc. ("Coastal") acquisitions

Primarily Regional Banking & Non-strategic	Legal matters	Noninterest expense: Litigation and regulatory matters	$(8.2) million	Pre-tax loss accruals related to legal matters

Corporate	Tax adjustments	Provision for income taxes	$13.7 million	Favorable effective tax rate adjustments primarily associated with the reversal of a capital loss deferred tax valuation allowance and certain discrete period items

Third Quarter 2017 vs. Second Quarter 2017

Consolidated


•	Net income available to common shareholders was $67.3 million, or $.28 per diluted share in third quarter compared to $90.8 million, or $.38 per diluted share in second quarter


•	Net interest income (“NII”) increased to $209.8 million in third quarter from $200.7 million in second quarter; Net Interest Margin (“NIM”) increased to 3.19 percent in third quarter from 3.07 percent in prior quarter

•

The increase in NII was due to higher average balances of loans to mortgage companies, loan growth within the Regional Banking other commercial loan portfolios, and higher average balances of loans held-for-sale. Additionally, the positive impact of higher short-term market rates and an additional day in third quarter relative to second quarter favorably impacted NII in third quarter, but was somewhat offset by continuing long-term run-off of the non-strategic loan portfolios


•	The increase in NIM was primarily due to a decrease in average excess cash held at the Fed during third quarter relative to the prior quarter and higher short-term market rates


•	Noninterest income (including securities gains) decreased to $112.4 million in third quarter from $127.7 million in prior quarter


•	The decrease was largely the result of a loss from the repurchase of equity securities previously included in a financing transaction mentioned in the notable items table above


•	Noninterest expense increased to $236.9 million in third quarter from $217.9 million in second quarter


•	The expense increase was primarily due to the favorable impact on second quarter expense of a $21.7 million reversal of repurchase and foreclosure provision as a result of the settlements/recoveries of certain repurchase claims, and to a lesser extent an increase in loss accruals related to legal matters in third quarter


•	A decline in professional fees and personnel expense in third quarter relative to the prior quarter favorably impacted expenses


•	Provision for income taxes was $13.6 million and $17.3 million in the third and second quarters, respectively


•	Both periods reflect the result of a favorable effective tax rate adjustment associated with the reversal of a capital loss deferred tax valuation allowance


•	Period-end loans were $20.2 billion in third quarter and $20.0 billion in second quarter; average loans increased 3 percent to $19.8 billion in third quarter


•	Period-end deposits were $22.1 billion and $22.3 billion in third and second quarter, respectively; average deposits decreased 2 percent linked quarter to $22.1 billion in third quarter


•	The decrease in average deposits was largely the result of an 8 percent decline in market-indexed deposits and a 7 percent decrease in commercial interest deposits; non-interesting bearing deposits increased 2 percent linked-quarter

Regional Banking


•	Pre-tax income increased to $114.7 million in third quarter from $113.8 million in second quarter; pre-provision net revenue was $123.2 million and $113.7 million in third and second quarter, respectively


•	Period-end loans increased to $18.8 billion in third quarter from $18.5 billion in second quarter; average loans increased 4 percent to $18.4 billion in third quarter


•	The increase in period-end loans was due to loan growth within the commercial loan portfolios and consumer real estate installment loans, somewhat offset by a decline in loans to mortgage companies


•	The increase in average loans was primarily driven by increases in loans to mortgage companies and other commercial loans, and to a lesser extent growth in the consumer real estate installment loan portfolio


•	Period-end deposits were $20.1 billion and $20.4 billion in third and second quarter, respectively; average deposits remained consistent at $20.1 billion


•	NII increased to $209.3 million in third quarter from $202.0 million in second quarter


•	The increase in NII was largely due to increases in average loans to mortgage companies and other commercial loans, higher average core deposits, and an additional day in third quarter relative to the prior quarter, somewhat offset by lower loan fees


•	Provision expense was $8.6 million in third quarter compared to $.3 million in the prior quarter primarily as a result of higher reserves associated with individually impaired loans within the C&I portfolio and an increase of commercial loan balances; the increase in reserves was partially offset by the effect of continued lower loss rates


•	Noninterest income was $64.4 million and $64.7 million in third and second quarter, respectively


•	Noninterest expense decreased to $150.5 million in third quarter from $152.7 million in second quarter due in large part to lower personnel expenses, a decrease in the reserve for unfunded commitments, and lower shared corporate costs, somewhat offset by $4.4 million of loss accruals related to legal matters associated with trust services recognized in third quarter



FHN PERFORMANCE HIGHLIGHTS (continued)


Third Quarter 2017 vs. Second Quarter 2017 (continued)

Fixed Income


•	Pre-tax income was $8.7 million in third quarter, up from $6.2 million in second quarter


•	NII increased to $6.0 million in third quarter from $5.0 million in second quarter primarily due to higher average balances of loans held-for-sale


•	Noninterest income increased to $55.8 million in third quarter from $55.2 million in second quarter


•	Fixed income product revenue was $45.0 million in third quarter compared to $45.6 million in second quarter


•	Fixed income product average daily revenue (“ADR”) was $715 thousand and $723 thousand in third and second quarter, respectively


•	Other product revenue increased $1.1 million to $10.8 million in third quarter largely due to increases in fees from loan sales


•	Noninterest expense was $53.1 million in third quarter compared to $54.0 million in second quarter

Corporate


•	Pre-tax loss was $47.4 million in third quarter compared to pre-tax loss of $33.3 million in second quarter


•	NII was negative $14.0 million and negative $15.0 million in third and second quarter, respectively


•	Estimated effective duration of the securities portfolio was 3.8 years in third and second quarter


•	Noninterest income (including net securities gains) was negative $9.5 million in third quarter compared to positive $6.2 million in second quarter


•	Third quarter includes a $14.3 million loss from the repurchase of equity securities previously included in a financing transaction


•	Noninterest expense was $23.9 million in third quarter compared to $24.6 million in second quarter


•	Third quarter expense includes $8.2 million of acquisition-related expenses primarily associated with the CBF and Coastal acquisitions


•	Second quarter expense included $6.4 million of acquisition-related expenses primarily associated with the CBF and Coastal acquisitions and a $3.2 million charitable contribution to the First Tennessee Foundation

Non-Strategic


•	Pre-tax income was $9.4 million in third quarter compared to $25.8 million in second quarter; with the decrease being largely driven by a reversal of prior repurchase provision in the second quarter


•	NII was $8.5 million in third quarter compared to $8.7 million in second quarter


•	The provision credit increased to $8.6 million in third quarter from a provision credit of $2.3 million in second quarter


•	The level of provision continues to reflect declining balances combined with stable performance within the legacy portfolio combined with higher recoveries in third quarter


•	Noninterest expense was $9.4 million in the third quarter compared to negative $13.3 million in second quarter


•	Third quarter expense includes $3.6 million of pre-tax loss accruals related to legal matters


•	Second quarter expense included $21.7 million of reversals of repurchase and foreclosure provision as a result of the settlements/recoveries of certain repurchase claims

Asset Quality


•	Allowance for loan losses decreased to $194.9 million in third quarter from $197.3 million in second quarter; the allowance to loans ratio decreased 2 bps to 97 basis points in third quarter


•	The decrease in reserves was primarily driven by the consumer portfolio within the non-strategic segment which was partially offset by an increase in commercial reserves within the regional bank


•	Net charge-offs were $2.4 million in third quarter compared to $2.7 million in second quarter


•	Regional bank net charge-offs increased $2.7 million to $5.7 million in third quarter primarily due to an increase within the C&I portfolio


•	Non-strategic net recoveries increased to $3.3 million in third quarter from $.3 million in second quarter largely driven by the consumer real estate portfolio


•	Nonperforming loans (“NPLs”), excluding loans held-for-sale, decreased to $125.0 million in third quarter from $129.8 million in second quarter; NPLs within all portfolios decreased with the exception of regional bank consumer real estate which increased $2.8 million


•	30+ delinquencies as a percentage of total loans increased to 38 basis points in third quarter compared to 27 basis points in second quarter


•	Increase was primarily driven by 2 relationships within the regional bank C&I portfolio, one of which is purchased credit-impaired


•	30+ delinquencies within the consumer portfolio improved driven by regional bank consumer real estate and non-strategic permanent mortgage portfolios

Taxes


•	The effective tax rates for third and second quarters were 15.93 percent and 15.34 percent, respectively


•	Third and second quarter effective rates were favorably impacted by the reversal of a capital loss deferred tax valuation allowance


•	The rates also 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 third quarter, aggregating $21.0 million, which was paid on October 2, 2017


•	Declared aggregate preferred quarterly dividend of $1.6 million in third quarter which was paid on October 10, 2017


•	There were no repurchases of shares in third 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 9.73 percent in third quarter compared to 9.63 percent in prior quarter


•	Tangible common equity to tangible assets (Non-GAAP) of 7.54 percent in third quarter compared to 7.41 percent in prior quarter


•	Common Equity Tier 1 of 10.03 percent in third quarter compared to 9.85 percent in prior quarter


•	Tier 1 of 11.19 percent in third quarter compared to 10.99 percent in prior quarter


•	Total Capital of 12.16 percent in third quarter compared to 11.98 percent in prior quarter


•	Leverage of 9.60 percent in third quarter compared to 9.38 percent in prior quarter

FHN CONSOLIDATED INCOME STATEMENT

Quarterly, Unaudited



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

Interest income	$	248,145		$	235,341		$	218,811		$	219,897		$	206,972		5		%	20		%
Less: interest expense	38,328			34,640			29,103			24,346			21,777			11		%	76		%
Net interest income	209,817			200,701			189,708			195,551			185,195			5		%	13		%
Provision/(provision credit) for loan losses	—			(2,000		)	(1,000		)	—			4,000			NM			NM
Net interest income after provision for loan losses	209,817			202,701			190,708			195,551			181,195			4		%	16		%
Noninterest income:
Fixed income	55,758			55,110			50,678			51,923			71,748			1		%	(22	)	%
Deposit transactions and cash management	28,011			27,858			24,565			27,504			27,221			1		%	3		%
Brokerage, management fees and commissions	11,937			12,029			11,906			11,003			10,828			(1	)	%	10		%
Trust services and investment management	6,953			7,698			6,653			7,053			6,885			(10	)	%	1		%
Bankcard income	6,170			5,605			5,455			6,353			6,260			10		%	(1	)	%
Bank-owned life insurance	3,539			4,351			3,247			3,558			3,997			(19	)	%	(11	)	%
Securities gains/(losses), net	6			405			44			(132		)	(200		)	(99	)	%	NM
Other (a)	43			14,617			14,391			16,815			21,806			NM			NM
Total noninterest income	112,417			127,673			116,939			124,077			148,545			(12	)	%	(24	)	%
Adjusted gross income after provision for loan losses	322,234			330,374			307,647			319,628			329,740			(2	)	%	(2	)	%
Noninterest expense:
Employee compensation, incentives, and benefits	137,798			139,088			134,932			137,324			145,103			(1	)	%	(5	)	%
Repurchase and foreclosure provision (b)	(609		)	(21,733		)	(238		)	(1,104		)	(218		)	97		%	NM
Legal fees	2,052			3,496			5,283			6,038			4,750			(41	)	%	(57	)	%
Professional fees (c)	6,566			9,659			4,746			4,827			4,859			(32	)	%	35		%
Occupancy	13,619			12,800			12,340			12,818			12,722			6		%	7		%
Computer software	11,993			12,285			10,799			11,909			10,400			(2	)	%	15		%
Contract employment and outsourcing	2,762			3,255			2,958			2,696			2,443			(15	)	%	13		%
Operations services	10,805			11,524			10,875			10,913			10,518			(6	)	%	3		%
Equipment rentals, depreciation, and maintenance	6,626			7,036			6,351			7,959			6,085			(6	)	%	9		%
FDIC premium expense	6,062			5,927			5,739			6,095			5,721			2		%	6		%
Advertising and public relations (d)	5,205			4,095			4,601			6,093			6,065			27		%	(14	)	%
Communications and courier	4,328			4,117			3,800			3,593			3,883			5		%	11		%
Amortization of intangible assets	1,964			1,964			1,232			1,300			1,299			*			51		%
Other (a)	27,698			24,404			18,787			27,436			19,928			13		%	39		%
Total noninterest expense	236,869			217,917			222,205			237,897			233,558			9		%	1		%
Income before income taxes	85,365			112,457			85,442			81,731			96,182			(24	)	%	(11	)	%
Provision for income taxes (e)	13,596			17,253			27,054			24,008			28,547			(21	)	%	(52	)	%
Net income	71,769			95,204			58,388			57,723			67,635			(25	)	%	6		%
Net income attributable to noncontrolling interest	2,883			2,852			2,820			2,879			2,883			1		%	*
Net income attributable to controlling interest	68,886			92,352			55,568			54,844			64,752			(25	)	%	6		%
Preferred stock dividends	1,550			1,550			1,550			1,550			1,550			*			*
Net income available to common shareholders	$	67,336		$	90,802		$	54,018		$	53,294		$	63,202		(26	)	%	7		%
Common Stock Data
EPS	$	0.29		$	0.39		$	0.23		$	0.23		$	0.27		(26	)	%	7		%
Basic shares (thousands)	233,749			233,482			233,076			232,731			231,856			*			1		%
Diluted EPS	$	0.28		$	0.38		$	0.23		$	0.23		$	0.27		(26	)	%	4		%
Diluted shares (thousands)	236,340			236,263			236,855			235,590			234,092			*			1		%
Key Ratios & Other
Return on average assets (annualized) (f)	0.99		%	1.32		%	0.82		%	0.80		%	0.97		%
Return on average common equity (“ROE”) (annualized) (f)	10.79		%	15.26		%	9.40		%	9.00		%	10.80		%
Return on average tangible common equity (“ROTCE”)(annualized) (f) (g)	12.17		%	17.30		%	10.33		%	9.89		%	11.90		%
Fee income to total revenue (f)	34.89		%	38.80		%	38.13		%	38.84		%	44.54		%
Efficiency ratio (f)	73.51		%	66.44		%	72.47		%	74.40		%	69.94		%
Full time equivalent employees	4,277			4,328			4,258			4,248			4,246

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) Expense reversals driven by the settlements/recoveries of certain repurchase claims.

(c) 3Q17 and 2Q17 increases largely driven by acquisition-related expenses primarily associated with the CBF and Coastal acquisitions.

(d) 4Q16 includes $1.1 million related to CRA initiatives; 3Q16 includes amounts related to a promotional branding campaign.

(e) 3Q17 and 2Q17 decreases primarily associated with a favorable effective tax rate adjustment associated with the reversal of a capital loss deferred tax valuation allowance.

(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



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

Other Income
ATM and interchange fees	$	3,137		$	3,083	$	2,778		$	3,047	$	3,081	2		%	2		%
Electronic banking fees	1,282			1,306		1,323			1,301		1,398		(2	)	%	(8	)	%
Letter of credit fees	1,211			1,122		1,036			946		981		8		%	23		%
Mortgage banking (a)	1,354			1,268		1,261			2,820		5,524		7		%	(75	)	%
Deferred compensation (b)	1,128			1,491		1,827			863		1,038		(24	)	%	9		%
Insurance commissions	567			592		883			680		1,262		(4	)	%	(55	)	%
Other service charges	2,954			3,109		2,984			3,018		3,004		(5	)	%	(2	)	%
Gain/(loss) on extinguishment of debt (c)	(14,329		)	—		—			—		—		NM			NM
Other (d)	2,739			2,646		2,299			4,140		5,518		4		%	(50	)	%
Total	$	43		$	14,617	$	14,391		$	16,815	$	21,806	NM			NM

Other Expense
Litigation and regulatory matters	$	8,162		$	533	$	(292	)	$	4,684	$	260	NM			NM
Tax credit investments	762			942		942			1,024		788		(19	)	%	(3	)	%
Travel and entertainment	2,798			3,162		2,348			3,240		2,478		(12	)	%	13		%
Employee training and dues	1,198			1,453		1,543			1,603		1,360		(18	)	%	(12	)	%
Customer relations	1,361			1,543		1,336			1,451		1,442		(12	)	%	(6	)	%
Miscellaneous loan costs	757			699		622			628		676		8		%	12		%
Supplies	928			1,093		863			1,320		1,158		(15	)	%	(20	)	%
Foreclosed real estate	303			446		204			648		815		(32	)	%	(63	)	%
Other insurance and taxes	2,396			2,443		2,390			1,939		2,625		(2	)	%	(9	)	%
Other (e)	9,033			12,090		8,831			10,899		8,326		(25	)	%	8		%
Total	$	27,698		$	24,404	$	18,787		$	27,436	$	19,928	13		%	39		%

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) 3Q17 includes a $14.3 million loss from the repurchase of equity securities previously included in a financing transaction.

(d) 3Q16 includes a $1.8 million gain on the sales of properties.

(e) 2Q17 includes a $3.2 million charitable contribution to the First Tennessee Foundation.

FHN CONSOLIDATED PERIOD-END BALANCE SHEET

Quarterly, Unaudited



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

Assets:
Investment securities	$	3,973,138		$	3,959,592		$	3,953,632		$	3,957,846		$	4,041,934		*			(2	)	%
Loans held-for-sale (a)	339,780			432,771			105,456			111,248			155,215			(21	)	%	NM
Loans, net of unearned income	20,166,091			19,989,319			19,090,074			19,589,520			19,555,787			1		%	3		%
Federal funds sold	76,316			34,036			31,495			50,838			27,097			NM			NM
Securities purchased under agreements to resell	663,637			657,991			835,222			613,682			802,815			1		%	(17	)	%
Interest-bearing cash (b)	604,326			573,666			2,106,597			1,060,034			219,834			5		%	NM
Trading securities	1,469,402			1,315,891			1,167,310			897,071			1,320,535			12		%	11		%
Total earning assets	27,292,690			26,963,266			27,289,786			26,280,239			26,123,217			1		%	4		%
Cash and due from banks	347,802			387,053			369,290			373,274			327,639			(10	)	%	6		%
Fixed income receivables (c)	68,750			127,724			168,315			57,411			91,997			(46	)	%	(25	)	%
Goodwill (a)	236,335			236,335			191,371			191,371			191,371			*			23		%
Other intangible assets, net (a)	43,157			45,121			19,785			21,017			22,317			(4	)	%	93		%
Premises and equipment, net	293,393			292,463			290,497			289,385			279,178			*			5		%
Other real estate owned ("OREO")	12,522			11,901			15,144			16,237			18,945			5		%	(34	)	%
Allowance for loan losses	(194,867		)	(197,257		)	(201,968		)	(202,068		)	(201,557		)	(1	)	%	(3	)	%
Derivative assets	80,976			91,653			98,120			121,654			160,736			(12	)	%	(50	)	%
Other assets	1,441,878			1,411,697			1,378,260			1,406,711			1,435,379			2		%	*
Total assets	$	29,622,636		$	29,369,956		$	29,618,600		$	28,555,231		$	28,449,222		1		%	4		%

Liabilities and Equity:
Deposits:
Consumer interest	$	9,164,017		$	9,429,788		$	9,367,537		$	8,943,616		$	8,577,214		(3	)	%	7		%
Commercial interest	2,915,446			3,285,931			3,275,599			2,943,545			2,743,474			(11	)	%	6		%
Market-indexed (d)	3,534,546			3,315,045			4,481,085			4,844,608			4,363,240			7		%	(19	)	%
Total interest-bearing deposits	15,614,009			16,030,764			17,124,221			16,731,769			15,683,928			(3	)	%	*
Noninterest-bearing deposits	6,485,245			6,302,585			6,355,620			5,940,594			5,890,252			3		%	10		%
Total deposits	22,099,254			22,333,349			23,479,841			22,672,363			21,574,180			(1	)	%	2		%
Federal funds purchased	292,650			314,892			504,805			414,207			538,284			(7	)	%	(46	)	%
Securities sold under agreements to repurchase	516,867			743,684			406,354			453,053			341,998			(30	)	%	51		%
Trading liabilities	579,028			555,793			848,190			561,848			702,226			4		%	(18	)	%
Other short-term borrowings (e)	1,637,419			1,044,658			79,454			83,177			792,736			57		%	NM
Term borrowings	1,059,507			1,033,329			1,035,036			1,040,656			1,065,651			3		%	(1	)	%
Fixed income payables (c)	44,304			28,571			21,116			21,002			68,897			55		%	(36	)	%
Derivative liabilities	83,146			92,717			101,347			135,897			144,829			(10	)	%	(43	)	%
Other liabilities	426,910			396,075			401,997			467,944			475,839			8		%	(10	)	%
Total liabilities	26,739,085			26,543,068			26,878,140			25,850,147			25,704,640			1		%	4		%
Equity:
Common stock	146,395			146,336			146,177			146,015			145,772			*			*
Capital surplus	1,401,359			1,395,797			1,391,777			1,386,636			1,376,319			*			2		%
Undivided profits	1,177,126			1,131,162			1,061,409			1,029,032			992,264			4		%	19		%
Accumulated other comprehensive loss, net	(232,384		)	(237,462		)	(249,958		)	(247,654		)	(160,828		)	(2	)	%	44		%
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	2,883,551			2,826,888			2,740,460			2,705,084			2,744,582			2		%	5		%
Total liabilities and equity	$	29,622,636		$	29,369,956		$	29,618,600		$	28,555,231		$	28,449,222		1		%	4		%

NM - Not meaningful

*Amount is less than one percent.

(a) 2Q17 increase driven by the Coastal acquisition.

(b) Includes excess balances held at Fed; 1Q17 increase largely driven by an inflow of customer deposits; 2Q17 decrease due to loan growth and the Coastal acquisition.

(d) Market-indexed deposits are tied to an index not administered by FHN and are comprised of insured network deposits, correspondent banking deposits, and trust/sweep deposits.

(e) Balance fluctuates largely based on the level of FHLB borrowings as a result of loan demand and deposit levels.

(f) Consists of preferred stock of subsidiaries.

FHN CONSOLIDATED AVERAGE BALANCE SHEET

Quarterly, Unaudited



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

Assets:
Earning assets:
Loans, net of unearned income:
Commercial, financial, and industrial (C&I)	$	12,474,188		$	11,830,942		$	11,381,258		$	11,987,562		$	11,281,691		5		%	11		%
Commercial real estate	2,211,831			2,175,733			2,176,355			2,089,314			1,997,121			2		%	11		%
Consumer real estate	4,398,550			4,431,591			4,491,786			4,545,646			4,601,420			(1	)	%	(4	)	%
Permanent mortgage	405,287			408,202			415,916			429,914			436,952			(1	)	%	(7	)	%
Credit card and other	354,807			355,123			348,123			361,311			362,166			*			(2	)	%
Total loans, net of unearned income (a)	19,844,663			19,201,591			18,813,438			19,413,747			18,679,350			3		%	6		%
Loans held-for-sale (b)	540,121			320,698			110,726			127,484			132,434			68		%	NM
Investment securities:
U.S. treasuries	109			100			100			100			100			9		%	9		%
U.S. government agencies	3,762,180			3,755,818			3,735,472			3,810,207			3,844,103			*			(2	)	%
States and municipalities	—			—			4,350			4,344			4,516			NM			NM
Corporate bonds	10,000			10,000			10,000			10,000			10,000			*			*
Other	188,361			188,229			186,670			186,452			186,632			*			1		%
Total investment securities	3,960,650			3,954,147			3,936,592			4,011,103			4,045,351			*			(2	)	%
Trading securities	1,125,033			1,283,212			929,545			1,283,407			1,155,776			(12	)	%	(3	)	%
Other earning assets:
Federal funds sold	29,852			36,936			17,015			19,323			28,049			(19	)	%	6		%
Securities purchased under agreements to resell	664,208			833,253			691,469			792,156			808,861			(20	)	%	(18	)	%
Interest-bearing cash (c)	392,274			970,853			2,117,498			711,485			491,164			(60	)	%	(20	)	%
Total other earning assets	1,086,334			1,841,042			2,825,982			1,522,964			1,328,074			(41	)	%	(18	)	%
Total earning assets	26,556,801			26,600,690			26,616,283			26,358,705			25,340,985			*			5		%
Allowance for loan losses	(196,631		)	(200,534		)	(202,618		)	(201,306		)	(200,654		)	(2	)	%	(2	)	%
Cash and due from banks	355,626			350,832			367,136			334,168			320,549			1		%	11		%
Fixed income receivables	54,286			64,779			41,688			83,019			75,255			(16	)	%	(28	)	%
Premises and equipment, net	293,286			291,769			289,202			282,849			278,042			1		%	5		%
Derivative assets	74,453			74,974			84,419			138,451			170,546			(1	)	%	(56	)	%
Other assets	1,737,006			1,693,840			1,609,996			1,640,781			1,624,979			3		%	7		%
Total assets	$	28,874,827		$	28,876,350		$	28,806,106		$	28,636,667		$	27,609,702		*			5		%

Liabilities and equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Consumer interest	$	9,244,021		$	9,330,990		$	9,003,550		$	8,641,507		$	8,550,172		(1	)	%	8		%
Commercial interest	2,876,398			3,086,139			3,097,922			2,819,980			2,780,360			(7	)	%	3		%
Market-indexed (d)	3,523,450			3,809,281			4,666,292			4,787,912			3,894,108			(8	)	%	(10	)	%
Total interest-bearing deposits	15,643,869			16,226,410			16,767,764			16,249,399			15,224,640			(4	)	%	3		%
Federal funds purchased	376,150			435,854			552,820			528,266			598,666			(14	)	%	(37	)	%
Securities sold under agreements to repurchase	680,366			616,837			419,131			378,837			387,486			10		%	76		%
Trading liabilities	597,269			762,667			642,456			745,011			752,270			(22	)	%	(21	)	%
Other short-term borrowings (e)	655,599			221,472			80,939			243,527			252,048			NM			NM
Term borrowings	1,112,735			1,034,020			1,039,719			1,064,206			1,075,039			8		%	4		%
Total interest-bearing liabilities	19,065,988			19,297,260			19,502,829			19,209,246			18,290,149			(1	)	%	4		%
Noninterest-bearing deposits	6,411,160			6,280,472			6,051,510			6,039,025			5,874,857			2		%	9		%
Fixed income payables	28,455			36,083			22,843			63,745			44,600			(21	)	%	(36	)	%
Derivative liabilities	80,916			85,119			84,928			123,460			146,063			(5	)	%	(45	)	%
Other liabilities	421,551			399,247			421,328			454,363			535,714			6		%	(21	)	%
Total liabilities	26,008,070			26,098,181			26,083,438			25,889,839			24,891,383			*			4		%
Equity:
Common stock	146,354			146,246			146,098			145,902			145,362			*			1		%
Capital surplus	1,397,883			1,392,718			1,389,062			1,380,843			1,369,708			*			2		%
Undivided profits	1,159,451			1,085,326			1,044,388			1,015,742			967,872			7		%	20		%
Accumulated other comprehensive loss, net	(227,986		)	(237,176		)	(247,935		)	(186,714		)	(155,678		)	(4	)	%	46		%
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	2,866,757			2,778,169			2,722,668			2,746,828			2,718,319			3		%	5		%
Total liabilities and equity	$	28,874,827		$	28,876,350		$	28,806,106		$	28,636,667		$	27,609,702		*			5		%

NM - Not meaningful

*Amount is less than one percent.

(a) Includes loans on nonaccrual status.

(b) 2Q17 increase driven by the Coastal acquisition.

(c) Includes excess balances held at Fed; 1Q17 increase largely driven by an inflow of customer deposits; 3Q17 and 2Q17 decreases due to loan growth and the Coastal acquisition.

(d) Market-indexed deposits are tied to an index not administered by FHN and are comprised of insured network deposits, correspondent banking deposits, and trust/sweep deposits.

(e) Balance fluctuates largely based on the level of FHLB borrowings as a result of loan demand and deposit levels.

(f) Consists of preferred stock of subsidiaries.

FHN CONSOLIDATED NET INTEREST INCOME (a)

Quarterly, Unaudited



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

Interest Income:
Loans, net of unearned income (b)	$	207,845		$	195,162		$	183,031		$	187,158		$	176,511		6		%	18		%
Loans held-for-sale	6,123			3,510			1,283			1,602			1,445			74		%	NM
Investment securities:
U.S. government agencies	23,844			24,122			24,221			23,110			22,517			(1	)	%	6		%
States and municipalities	—			—			101			102			102			NM			NM
Corporate bonds	131			132			131			131			131			(1	)	%	*
Other	1,731			1,535			1,414			1,479			1,138			13		%	52		%
Total investment securities	25,706			25,789			25,867			24,822			23,888			*			8		%
Trading securities	8,604			9,846			6,602			8,616			7,110			(13	)	%	21		%
Other earning assets:
Federal funds sold	131			146			54			52			70			(10	)	%	87		%
Securities purchased under agreements to resell (c)	1,476			1,442			590			(186		)	169			2		%	NM
Interest-bearing cash	1,226			2,456			4,235			1,027			604			(50	)	%	NM
Total other earning assets	2,833			4,044			4,879			893			843			(30	)	%	NM
Interest income	$	251,111		$	238,351		$	221,662		$	223,091		$	209,797		5		%	20		%

Interest Expense:
Interest-bearing deposits:
Consumer interest	$	5,032		$	5,448		$	3,852		$	2,926		$	2,871		(8	)	%	75		%
Commercial interest	4,970			4,797			3,927			3,102			2,732			4		%	82		%
Market-indexed (d)	10,266			8,941			8,407			5,968			4,424			15		%	NM
Total interest-bearing deposits	20,268			19,186			16,186			11,996			10,027			6		%	NM
Federal funds purchased	1,173			1,106			1,056			731			779			6		%	51		%
Securities sold under agreements to repurchase	1,815			1,081			89			47			90			68		%	NM
Trading liabilities	3,298			4,203			3,781			3,848			3,331			(22	)	%	(1	)	%
Other short-term borrowings	2,012			716			247			373			385			NM			NM
Term borrowings	9,762			8,348			7,744			7,351			7,165			17		%	36		%
Interest expense	38,328			34,640			29,103			24,346			21,777			11		%	76		%
Net interest income - tax equivalent basis	212,783			203,711			192,559			198,745			188,020			4		%	13		%
Fully taxable equivalent adjustment	(2,966		)	(3,010		)	(2,851		)	(3,194		)	(2,825		)	1		%	(5	)	%
Net interest income	$	209,817		$	200,701		$	189,708		$	195,551		$	185,195		5		%	13		%

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.

(d) Market-indexed deposits are tied to an index not administered by FHN and are comprised of insured network deposits, correspondent banking deposits, and trust/sweep deposits.

FHN CONSOLIDATED AVERAGE BALANCE SHEET: YIELDS AND RATES

Quarterly, Unaudited



	3Q17		2Q17		1Q17		4Q16			3Q16

Assets:
Earning assets (a)
Loans, net of unearned income (b)
Commercial loans	4.13	%	4.03	%	3.86	%	3.75		%	3.63	%
Consumer loans	4.23		4.21		4.13		4.06			4.08
Total loans, net of unearned income (c)	4.16		4.08		3.94		3.84			3.76
Loans held-for-sale	4.53		4.38		4.64		5.03			4.36
Investment securities:
U.S. government agencies	2.54		2.57		2.59		2.43			2.34
States and municipalities	—		—		9.33		9.39			9.01
Corporate bonds	5.25		5.25		5.25		5.25			5.25
Other	3.67		3.26		3.03		3.17			2.44
Total investment securities	2.60		2.61		2.63		2.48			2.36
Trading securities	3.06		3.07		2.84		2.69			2.46
Other earning assets:
Federal funds sold	1.75		1.58		1.28		1.07			0.99
Securities purchased under agreements to resell (d)	0.88		0.69		0.35		(0.09	)		0.08
Interest-bearing cash	1.24		1.02		0.81		0.57			0.49
Total other earning assets	1.03		0.88		0.70		0.23			0.25
Interest income/total earning assets	3.76	%	3.59	%	3.37	%	3.37		%	3.30	%
Liabilities:
Interest-bearing liabilities:
Interest-bearing deposits:
Consumer interest	0.22	%	0.23	%	0.17	%	0.13		%	0.13	%
Commercial interest	0.69		0.62		0.51		0.44			0.39
Market-indexed (e)	1.16		0.94		0.73		0.50			0.45
Total interest-bearing deposits	0.51		0.47		0.39		0.29			0.26
Federal funds purchased	1.24		1.02		0.77		0.55			0.52
Securities sold under agreements to repurchase	1.06		0.70		0.09		0.05			0.09
Trading liabilities	2.19		2.21		2.39		2.06			1.76
Other short-term borrowings	1.22		1.30		1.24		0.61			0.61
Term borrowings (f)	3.51		3.23		2.98		2.76			2.67
Interest expense/total interest-bearing liabilities	0.80		0.72		0.60		0.51			0.47
Net interest spread	2.96	%	2.87	%	2.77	%	2.86		%	2.83	%
Effect of interest-free sources used to fund earning assets	0.23		0.20		0.15		0.14			0.13
Net interest margin	3.19	%	3.07	%	2.92	%	3.00		%	2.96	%

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

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

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

(b) Includes loan fees and cash basis interest income.

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

(e) Market-indexed deposits are tied to an index not administered by FHN and are comprised of insured network deposits, correspondent banking deposits, and trust/sweep deposits.

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

FHN CAPITAL HIGHLIGHTS

Quarterly, Unaudited



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

Common equity tier 1 capital (a) (b)	$	2,477,210		$	2,418,578		$	2,409,219		$	2,377,987		$	2,326,207		2	%	6	%
Tier 1 capital (a) (b)	2,764,951			2,699,698			2,680,869			2,671,871			2,615,449			2	%	6	%
Total capital (a)	3,005,407			2,942,948			2,926,292			2,926,010			2,868,437			2	%	5	%

Risk-weighted assets (“RWA”) (a) (b)	24,705,400			24,566,487			23,623,224			23,914,158			23,716,102			1	%	4	%
Average assets for leverage (a) (b)	28,793,818			28,793,889			28,805,253			28,581,251			27,481,309			*		5	%

Common equity tier 1 ratio (a) (b)	10.03		%	9.85		%	10.20		%	9.94		%	9.81		%
Tier 1 ratio (a) (b)	11.19		%	10.99		%	11.35		%	11.17		%	11.03		%
Total capital ratio (a)	12.16		%	11.98		%	12.39		%	12.24		%	12.09		%
Leverage ratio (a) (b)	9.60		%	9.38		%	9.31		%	9.35		%	9.52		%

Total equity to total assets	9.73		%	9.63		%	9.25		%	9.47		%	9.65		%
Tangible common equity/tangible assets (“TCE/TA”) (c)	7.54		%	7.41		%	7.27		%	7.42		%	7.58		%
Period-end shares outstanding	234,231			234,135			233,883			233,624			233,235			*		*
Cash dividends declared per common share	$	0.09		$	0.09		$	0.09		$	0.07		$	0.07		*		29	%
Book value per common share	$	10.64		$	10.40		$	10.05		$	9.90		$	10.09
Tangible book value per common share (c)	$	9.45		$	9.20		$	9.14		$	9.00		$	9.17
Market capitalization (millions)	$	4,485.5		$	4,078.6		$	4,326.8		$	4,674.8		$	3,552.2

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

* Amount is less than one percent.

(a) Current quarter is an estimate.

(b) 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



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

Regional Banking
Net interest income	$	209,319		$	201,972		$	193,389		$	200,717		$	190,508		4		%	10		%
Noninterest income	64,369			64,737			58,976			63,324			65,128			(1	)	%	(1	)	%
Total revenues	273,688			266,709			252,365			264,041			255,636			3		%	7		%
Provision for loan losses	8,552			260			3,098			4,692			8,544			NM			*
Noninterest expense (a)	150,464			152,647			148,064			160,851			145,050			(1	)	%	4		%
Income before income taxes	114,672			113,802			101,203			98,498			102,042			1		%	12		%
Provision for income taxes	41,267			41,131			36,588			35,364			37,027			*			11		%
Net income	$	73,405		$	72,671		$	64,615		$	63,134		$	65,015		1		%	13		%

Fixed Income
Net interest income	$	5,979		$	4,979		$	1,151		$	2,541		$	2,411		20		%	NM
Noninterest income	55,802			55,205			50,822			52,061			72,073			1		%	(23	)	%
Total revenues	61,781			60,184			51,973			54,602			74,484			3		%	(17	)	%
Noninterest expense	53,105			54,001			48,685			48,726			59,423			(2	)	%	(11	)	%
Income before income taxes	8,676			6,183			3,288			5,876			15,061			40		%	(42	)	%
Provision for income taxes	2,979			1,946			1,024			1,875			5,518			53		%	(46	)	%
Net income	$	5,697		$	4,237		$	2,264		$	4,001		$	9,543		34		%	(40	)	%

Corporate
Net interest income/(expense)	$	(13,990	)	$	(14,970	)	$	(14,100	)	$	(17,501	)	$	(18,193	)	7		%	23		%
Noninterest income (b)	(9,477		)	6,218			5,476			4,670			5,134			NM			NM
Total revenues	(23,467		)	(8,752		)	(8,624		)	(12,831		)	(13,059		)	NM			(80	)	%
Noninterest expense (c)	23,935			24,575			16,880			14,593			14,929			(3	)	%	60		%
Loss before income taxes	(47,402		)	(33,327		)	(25,504		)	(27,424		)	(27,988		)	(42	)	%	(69	)	%
Benefit for income taxes (d)	(34,255		)	(35,706		)	(13,058		)	(15,082		)	(16,736		)	4		%	NM
Net income/(loss)	$	(13,147	)	$	2,379		$	(12,446	)	$	(12,342	)	$	(11,252	)	NM			(17	)	%

Non-Strategic
Net interest income	$	8,509		$	8,720		$	9,268		$	9,794		$	10,469		(2	)	%	(19	)	%
Noninterest income (e)	1,723			1,513			1,665			4,022			6,210			14		%	(72	)	%
Total revenues	10,232			10,233			10,933			13,816			16,679			*			(39	)	%
Provision/(provision credit) for loan losses	(8,552		)	(2,260		)	(4,098		)	(4,692		)	(4,544		)	NM			(88	)	%
Noninterest expense (f)	9,365			(13,306		)	8,576			13,727			14,156			NM			(34	)	%
Income/(loss) before income taxes	9,419			25,799			6,455			4,781			7,067			(63	)	%	33		%
Provision/(benefit) for income taxes	3,605			9,882			2,500			1,851			2,738			(64	)	%	32		%
Net income/(loss)	$	5,814		$	15,917		$	3,955		$	2,930		$	4,329		(63	)	%	34		%

Total Consolidated
Net interest income	$	209,817		$	200,701		$	189,708		$	195,551		$	185,195		5		%	13		%
Noninterest income	112,417			127,673			116,939			124,077			148,545			(12	)	%	(24	)	%
Total revenues	322,234			328,374			306,647			319,628			333,740			(2	)	%	(3	)	%
Provision/(provision credit) for loan losses	—			(2,000		)	(1,000		)	—			4,000			NM			NM
Noninterest expense	236,869			217,917			222,205			237,897			233,558			9		%	1		%
Income before income taxes	85,365			112,457			85,442			81,731			96,182			(24	)	%	(11	)	%
Provision for income taxes	13,596			17,253			27,054			24,008			28,547			(21	)	%	(52	)	%
Net income	$	71,769		$	95,204		$	58,388		$	57,723		$	67,635		(25	)	%	6		%

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

NM - Not meaningful

* Amount is less than one percent.


(a)	3Q17 includes $4.4 million of loss accruals related to legal matters; 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.


(b)	3Q17 includes a $14.3 million loss from the repurchase of equity securities previously included in a financing transaction.


(c)	3Q17 includes $8.2 million of acquisition-related expenses primarily associated with the CBF and Coastal acquisitions; 2Q17 includes $6.4 million of acquisition-related expenses primarily associated with the CBF and Coastal acquisitions and a $3.2 million charitable contribution to the First Tennessee Foundation.


(d)	3Q17 and 2Q17 decreases primarily associated with a favorable effective tax rate adjustment associated with the reversal of a capital loss deferred tax valuation allowance.


(e)	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.


(f)	3Q17 includes $3.6 million of loss accruals related to legal matters; 2Q17 includes a $21.7 million reversal of repurchase and foreclosure provision as a result of the settlements/ recoveries of certain repurchase claims; 4Q16 includes $2.0 million of loss accruals related to legal matters; 3Q16 includes $4.5 million of loss accruals related to legal matters.

FHN REGIONAL BANKING

Quarterly, Unaudited



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

Income Statement (thousands)
Net interest income	$	209,319		$	201,972		$	193,389		$	200,717		$	190,508		4		%	10		%
Provision for loan losses	8,552			260			3,098			4,692			8,544			NM			*
Noninterest income:
NSF / Overdraft fees (a)	9,888			8,726			6,316			9,707			10,076			13		%	(2	)	%
Cash management fees	8,923			9,641			9,196			8,659			7,947			(7	)	%	12		%
Debit card income	3,638			3,658			3,407			3,516			3,496			(1	)	%	4		%
Other	4,189			4,424			4,327			4,291			4,215			(5	)	%	(1	)	%
Total deposit transactions and cash management	26,638			26,449			23,246			26,173			25,734			1		%	4		%
Brokerage, management fees and commissions	11,936			12,029			11,906			11,003			10,828			(1	)	%	10		%
Trust services and investment management	6,968			7,713			6,680			7,056			6,900			(10	)	%	1		%
Bankcard income	6,057			5,495			5,342			6,230			6,151			10		%	(2	)	%
Other service charges	2,603			2,722			2,618			2,596			2,591			(4	)	%	*
Miscellaneous revenue (b) (c)	10,167			10,329			9,184			10,266			12,924			(2	)	%	(21	)	%
Total noninterest income	64,369			64,737			58,976			63,324			65,128			(1	)	%	(1	)	%
Noninterest expense:
Employee compensation, incentives, and benefits	56,387			58,487			57,990			58,627			56,440			(4	)	%	*
Other (d)	94,077			94,160			90,074			102,224			88,610			*			6		%
Total noninterest expense	150,464			152,647			148,064			160,851			145,050			(1	)	%	4		%
Income before income taxes	$	114,672		$	113,802		$	101,203		$	98,498		$	102,042		1		%	12		%
PPNR (e)	123,224			113,676			104,301			103,190			110,586			8		%	11		%
Efficiency ratio (f)	54.98		%	57.32		%	58.67		%	60.92		%	56.74		%

Balance Sheet (millions)
Average loans	$	18,402		$	17,679		$	17,199		$	17,692		$	16,844		4		%	9		%
Average other earning assets	44			50			34			37			46			(12	)	%	(4	)	%
Total average earning assets	18,446			17,729			17,233			17,729			16,890			4		%	9		%
Total average deposits	20,075			20,139			19,660			19,022			18,604			*			8		%
Total period-end deposits	20,084			20,425			20,541			19,348			18,742			(2	)	%	7		%
Total period-end assets	19,600			19,333			18,329			18,771			18,562			1		%	6		%
Net interest margin (g)	4.56		%	4.63		%	4.61		%	4.57		%	4.55		%
Net interest spread	3.72			3.62			3.57			3.52			3.46
Loan yield	4.00			3.88			3.78			3.68			3.61
Deposit average rate	0.28			0.26			0.21			0.16			0.15

Key Statistics
Financial center locations	163			163			162			162			162			*			1		%

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

NM - Not meaningful

* 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)	3Q16 includes a $1.8 million gain on the sales of properties.


(c)	2Q17 includes $386 thousand of securities gains/(losses).


(d)	3Q17 includes $4.4 million of loss accruals related to legal matters; 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.


(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 excluding securities gains/(losses).


(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



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

Income Statement (thousands)
Net interest income (a)	$	5,979		$	4,979		$	1,151		$	2,541		$	2,411		20		%	NM
Noninterest income:
Fixed income product revenue	45,020			45,555			42,727			43,794			59,003			(1	)	%	(24	)	%
Other (b)	10,782			9,650			8,095			8,267			13,070			12		%	(18	)	%
Total noninterest income	55,802			55,205			50,822			52,061			72,073			1		%	(23	)	%
Noninterest expense	53,105			54,001			48,685			48,726			59,423			(2	)	%	(11	)	%
Income before income taxes	$	8,676		$	6,183		$	3,288		$	5,876		$	15,061		40		%	(42	)	%

Efficiency ratio (c)	85.96		%	89.73		%	93.67		%	89.24		%	79.78		%
Fixed income product average daily revenue	$	715		$	723		$	689		$	718		$	922		(1	)	%	(22	)	%

Balance Sheet (millions)
Average trading inventory (a)	$	1,122		$	1,281		$	927		$	1,281		$	1,153		(12	)	%	(3	)	%
Average loans held-for-sale (a)	443			220			7			20			22			NM			NM
Average other earning assets	690			851			696			798			809			(19	)	%	(15	)	%
Total average earning assets	2,255			2,352			1,630			2,099			1,984			(4	)	%	14		%
Total period-end assets	2,751			2,745			2,395			1,817			2,516			*			9		%
Net interest margin (d)	1.12		%	0.92		%	0.33		%	0.57		%	0.55		%

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

NM - Not meaningful

* Amount is less than one percent

(a) 2Q17 increase driven by the Coastal acquisition.

(b) 3Q16 includes higher fees from loan and derivative sales.

(d) 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



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

Income Statement (thousands)
Net interest income/(expense)	$	(13,990	)	$	(14,970	)	$	(14,100	)	$	(17,501	)	$	(18,193	)	7		%	23		%
Noninterest income excluding securities gains/(losses) (a)	(9,483		)	6,199			5,432			4,802			5,335			NM			NM
Securities gains/(losses), net	6			19			44			(132		)	(201		)	(68	)	%	NM
Noninterest expense (b)	23,935			24,575			16,880			14,593			14,929			(3	)	%	60		%
Loss before income taxes	$	(47,402	)	$	(33,327	)	$	(25,504	)	$	(27,424	)	$	(27,988	)	(42	)	%	(69	)	%

Average Balance Sheet (millions)
Average investment securities	$	3,959		$	3,950		$	3,931		$	4,007		$	4,041		*			(2	)	%
Total earning assets	$	4,408		$	4,983		$	6,122		$	4,795		$	4,617		(12	)	%	(5	)	%

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

NM - Not Meaningful

* Amount is less than one percent.

(a) 3Q17 includes a $14.3 million loss from the repurchase of equity securities previously included in a financing transaction.

(b) 3Q17 includes $8.2 million of acquisition-related expenses primarily associated with the CBF and Coastal acquisitions; 2Q17 increase primarily driven by $6.4 million of acquisition-related expenses primarily associated with the CBF and Coastal acquisitions and a $3.2 million charitable contribution to the First Tennessee Foundation, somewhat offset by $2.2 million of deferred compensation BOLI gains.

FHN NON-STRATEGIC

Quarterly, Unaudited



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

Income Statement (thousands)
Net interest income	$	8,509			$	8,720			$	9,268			$	9,794			$	10,469			(2	)	%	(19	)	%
Provision/(provision credit) for loan losses	(8,552		)		(2,260		)		(4,098		)		(4,692		)		(4,544		)		NM			(88	)	%
Noninterest income (a)	1,723				1,513				1,665				4,022				6,210				14		%	(72	)	%
Noninterest expense (b)	9,365				(13,306		)		8,576				13,727				14,156				NM			(34	)	%
Income/(loss) before income taxes	$	9,419			$	25,799			$	6,455			$	4,781			$	7,067			(63	)	%	33		%

Average Balance Sheet (millions)
Loans	$	1,358			$	1,441			$	1,535			$	1,636			$	1,744			(6	)	%	(22	)	%
Other assets	73				80				81				86				97				(9	)	%	(25	)	%
Total assets	1,431				1,521				1,616				1,722				1,841				(6	)	%	(22	)	%
Net interest margin (c)	2.34			%	2.27			%	2.29			%	2.25			%	2.26			%
Efficiency ratio (d)	91.53			%	NM				78.44			%	99.36			%	84.87			%

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

NM - Not meaningful

(b) 3Q17 includes $3.6 million of loss accrual related to legal matters; 2Q17 includes a $21.7 million reversal of repurchase and foreclosure provision as a result of the settlements/ recoveries of certain repurchase claims; 4Q16 includes $2.0 million of loss accruals related to legal matters; 3Q16 includes $4.5 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



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

Allowance for Loan Losses Walk-Forward
Beginning reserve	$	197,257			$	201,968			$	202,068			$	201,557			$	199,807			(2)%	(1)%
Provision/(provision credit) for loan losses	—				(2,000			)	(1,000			)	—				4,000				NM	NM
Charge-offs	(10,670			)	(9,830			)	(8,413			)	(11,369			)	(10,362			)	(9)%	(3)%
Recoveries	8,280				7,119				9,313				11,880				8,112				16%	2%
Ending balance	$	194,867			$	197,257			$	201,968			$	202,068			$	201,557			(1)%	(3)%
Reserve for unfunded commitments	4,372				5,554				5,284				5,312				4,802				(21)%	(9)%
Total allowance for loan losses plus reserve for unfunded commitments	$	199,239			$	202,811			$	207,252			$	207,380			$	206,359			(2)%	(3)%

Allowance for Loan Losses
Regional Banking	$	156,021			$	153,208			$	155,968			$	154,082			$	151,397			2%	3%
Non-Strategic	38,846				44,049				46,000				47,986				50,160				(12)%	(23)%
Total allowance for loan losses	$	194,867			$	197,257			$	201,968			$	202,068			$	201,557			(1)%	(3)%

Nonperforming Assets
Regional Banking
Nonperforming loans	$	40,610			$	43,012			$	49,462			$	50,653			$	50,267			(6)%	(19)%
OREO (a)	2,848				3,266				4,422				5,081				5,811				(13)%	(51)%
Total Regional Banking	$	43,458			$	46,278			$	53,884			$	55,734			$	56,078			(6)%	(23)%
Non-Strategic
Nonperforming loans	$	82,203			$	84,959			$	92,409			$	93,808			$	100,572			(3)%	(18)%
Nonperforming loans held-for-sale after fair value adjustments	7,314				7,321				7,633				7,741				7,791				*	(6)%
OREO (a)	5,029				3,772				5,837				6,154				7,867				33%	(36)%
Total Non-Strategic	$	94,546			$	96,052			$	105,879			$	107,703			$	116,230			(2)%	(19)%
Corporate
Nonperforming loans	$	2,173			$	1,819			$	1,521			$	1,186			$	1,211			19%	79%
Total nonperforming assets (a)	$	140,177			$	144,149			$	161,284			$	164,623			$	173,519			(3)%	(19)%

Net Charge-Offs
Regional Banking	$	5,739			$	3,020			$	1,211			$	2,007			$	3,499			90%	64%
Non-Strategic	(3,349			)	(309			)	(2,111			)	(2,518			)	(1,249			)	NM	NM
Total net charge-offs/(recoveries)	$	2,390			$	2,711			$	(900		)	$	(511		)	$	2,250			(12)%	6%

Consolidated Key Ratios (b)
30+ Delinq. % (c)	0.38		%		0.27		%		0.39		%		0.34		%		0.32		%
NPL %	0.62				0.65				0.75				0.74				0.78
NPA %	0.66				0.68				0.80				0.80				0.85
Net charge-offs %	0.05				0.06				NM				NM				0.05
Allowance / loans %	0.97				0.99				1.06				1.03				1.03
Allowance / NPL	1.56		x		1.52		x		1.41		x		1.39		x		1.33		x
Allowance / NPA	1.47		x		1.44		x		1.31		x		1.29		x		1.22		x
Allowance / net charge-offs	20.55		x		18.14		x		NM				NM				22.51		x

Other
Loans past due 90 days or more and still accruing (d)	$	41,025			$	37,809			$	37,156			$	38,299			$	36,562			9%	12%
Guaranteed portion (d)	10,046				15,276				14,569				14,664				13,645				(34)%	(26)%
Period-end loans, net of unearned income (millions)	20,166				19,989				19,090				19,590				19,556				1%	3%

NM - Not meaningful

* Amount is less than one percent.

(a) Excludes OREO from government-insured mortgages.

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

(d) Includes loans held-for-sale.

FHN ASSET QUALITY: CONSOLIDATED

Quarterly, Unaudited



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

Key Portfolio Details
C&I
Period-end loans ($ millions)	$	12,792		$	12,598		$	11,704		$	12,148		$	12,118		2%	6%
30+ Delinq. % (a) (b) (c)	0.27		%	0.03		%	0.17		%	0.08		%	0.05		%
NPL %	0.15			0.20			0.26			0.27			0.25
Charge-offs % (qtr. annualized)	0.10			0.04			NM			NM			0.04
Allowance / loans %	0.77		%	0.73		%	0.80		%	0.74		%	0.72		%
Allowance / net charge-offs	7.97		x	18.21		x	NM			NM			17.23		x

Commercial Real Estate
Period-end loans ($ millions)	$	2,251		$	2,212		$	2,173		$	2,136		$	2,066		2%	9%
30+ Delinq. % (a)	0.02		%	0.01		%	0.03		%	0.01		%	0.18		%
NPL %	0.07			0.07			0.11			0.13			0.17
Charge-offs % (qtr. annualized)	NM			NM			NM			0.09			NM
Allowance / loans %	1.32		%	1.38		%	1.42		%	1.59		%	1.57		%
Allowance / net charge-offs	NM			NM			NM			17.56		x	NM

Consumer Real Estate
Period-end loans ($ millions)	$	4,370		$	4,417		$	4,457		$	4,524		$	4,578		(1)%	(5)%
30+ Delinq. % (a)	0.74		%	0.81		%	0.86		%	0.93		%	0.86		%
NPL %	1.76			1.70			1.83			1.83			1.95
Charge-offs % (qtr. annualized)	NM			NM			NM			NM			NM
Allowance / loans %	0.94		%	1.04		%	1.11		%	1.11		%	1.16		%
Allowance / net charge-offs	NM			NM			NM			NM			NM

Permanent Mortgage
Period-end loans ($ millions)	$	403		$	408		$	409		$	423		$	436		(1)%	(8)%
30+ Delinq. % (a)	1.51		%	2.57		%	2.57		%	2.36		%	2.46		%
NPL %	6.81			6.81			7.05			6.42			6.67
Charge-offs % (qtr. annualized)	NM			0.35			NM			NM			0.12
Allowance / loans %	3.90		%	4.02		%	3.88		%	3.85		%	3.80		%
Allowance / net charge-offs	NM			11.52		x	NM			NM			31.11		x

Credit Card and Other
Period-end loans ($ millions)	$	350		$	354		$	347		$	359		$	358		(1)%	(2)%
30+ Delinq. % (a)	0.89		%	0.92		%	1.00		%	1.17		%	1.04		%
NPL %	0.04			0.04			0.04			0.04			0.04
Charge-offs % (qtr. annualized)	2.80			2.71			3.08			3.25			2.95
Allowance / loans %	2.95		%	3.38		%	3.58		%	3.39		%	3.48		%
Allowance / net charge-offs	1.04		x	1.24		x	1.16		x	1.04		x	1.17		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) 1Q17 increase was primarily driven by a few credits within the C&I portfolio, all of which were favorably resolved in second quarter 2017.

FHN ASSET QUALITY: REGIONAL BANKING

Quarterly, Unaudited



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

Total Regional Banking
Period-end loans ($ millions)	$	18,788		$	18,529		$	17,537		$	17,935		$	17,789		1%	6%
30+ Delinq. % (a)	0.28		%	0.13		%	0.24		%	0.18		%	0.17		%
NPL %	0.22			0.23			0.28			0.28			0.28
Charge-offs % (qtr. annualized)	0.12			0.07			0.03			0.05			0.08
Allowance / loans %	0.83		%	0.83		%	0.89		%	0.86		%	0.85		%
Allowance / net charge-offs	6.85		x	12.65		x	31.75		x	19.30		x	10.88		x

Key Portfolio Details
C&I
Period-end loans ($ millions)	$	12,373		$	12,178		$	11,284		$	11,728		$	11,698		2%	6%
30+ Delinq. % (a) (b) (c)	0.28		%	0.03		%	0.18		%	0.08		%	0.05		%
NPL %	0.13			0.17			0.24			0.24			0.22
Charge-offs % (qtr. annualized)	0.10			0.04			NM			NM			0.05
Allowance / loans %	0.78		%	0.75		%	0.81		%	0.75		%	0.73		%
Allowance / net charge-offs	7.83		x	17.85		x	NM			NM			16.76		x

Commercial Real Estate
Period-end loans ($ millions)	$	2,251		$	2,212		$	2,173		$	2,136		$	2,066		2%	9%
30+ Delinq. % (a)	0.02		%	0.01		%	0.03		%	0.01		%	0.18		%
NPL %	0.07			0.07			0.11			0.13			0.17
Charge-offs % (qtr. annualized)	NM			NM			NM			0.11			NM
Allowance / loans %	1.32		%	1.38		%	1.42		%	1.59		%	1.57		%
Allowance / net charge-offs	NM			NM			NM			14.28		x	NM

Consumer Real Estate
Period-end loans ($ millions)	$	3,714		$	3,695		$	3,655		$	3,643		$	3,608		1%	3%
30+ Delinq. % (a)	0.38		%	0.46		%	0.48		%	0.49		%	0.46		%
NPL %	0.61			0.54			0.55			0.52			0.57
Charge-offs % (qtr. annualized)	0.04			NM			NM			—			0.01
Allowance / loans %	0.46		%	0.48		%	0.53		%	0.52		%	0.56		%
Allowance / net charge-offs	11.04		x	NM			NM			NM			57.14		x

Credit Card, Permanent Mortgage, and Other
Period-end loans ($ millions)	$	450		$	444		$	425		$	428		$	417		1%	8%
30+ Delinq. % (a)	0.85		%	0.81		%	0.90		%	1.08		%	0.97		%
NPL %	0.10			0.09			0.09			0.09			0.10
Charge-offs % (qtr. annualized)	2.19			2.21			2.55			2.79			2.64
Allowance / loans %	2.79		%	3.13		%	3.36		%	3.09		%	3.19		%
Allowance / net charge-offs	1.27		x	1.44		x	1.33		x	1.12		x	1.23		x

ASSET QUALITY: CORPORATE

Permanent Mortgage
Period-end loans ($ millions)	$	58		$	63		$	67		$	71		$	79		(8)%	(27)%
30+ Delinq. % (a)	4.22		%	6.52		%	4.25		%	4.37		%	4.37		%
NPL %	3.75			2.90			2.25			1.66			1.54
Charge-offs % (qtr. annualized)	NM			NM			NM			NM			NM
Allowance / loans %	NM			NM			NM			NM			NM
Allowance / net charge-offs	NM			NM			NM			NM			NM

NM - Not meaningful

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

(b) 1Q17 increase was primarily driven by a few credits within the C&I portfolio, all of which were favorably resolved in second quarter 2017.

FHN ASSET QUALITY: NON-STRATEGIC

Quarterly, Unaudited



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

Total Non-Strategic
Period-end loans ($ millions)	$	1,320		$	1,397		$	1,486		$	1,584		$	1,688		(6)%	(22)%
30+ Delinq. % (a)	1.62		%	1.79		%	1.89		%	1.94		%	1.76		%
NPL %	6.23			6.08			6.22			5.92			5.96
Charge-offs % (qtr. annualized)	NM			NM			NM			NM			NM
Allowance / loans %	2.94		%	3.15		%	3.10		%	3.03		%	2.97		%
Allowance / net charge-offs	NM			NM			NM			NM			NM

Key Portfolio Details
Commercial
Period-end loans ($ millions)	$	419		$	420		$	420		$	420		$	420		*	*
30+ Delinq. % (a)	—		%	—		%	—		%	—		%	—		%
NPL %	0.74			0.95			0.97			0.98			0.99
Charge-offs % (qtr. annualized)	NM			NM			NM			NM			NM
Allowance / loans %	0.32		%	0.34		%	0.35		%	0.33		%	0.33		%
Allowance / net charge-offs	NM			NM			NM			NM			NM

Consumer Real Estate
Period-end loans ($ millions)	$	656		$	722		$	802		$	881		$	970		(9)%	(32)%
30+ Delinq. % (a)	2.80		%	2.62		%	2.60		%	2.76		%	2.34		%
NPL %	8.26			7.64			7.65			7.26			7.09
Charge-offs % (qtr. annualized)	NM			NM			NM			NM			NM
Allowance / loans %	3.66		%	3.90		%	3.80		%	3.56		%	3.40		%
Allowance / net charge-offs	NM			NM			NM			NM			NM

Permanent Mortgage
Period-end loans ($ millions)	$	239		$	249		$	258		$	275		$	290		(4)%	(18)%
30+ Delinq. % (a)	1.20		%	2.38		%	2.78		%	2.29		%	2.36		%
NPL %	10.39			10.30			10.45			9.32			9.48
Charge-offs % (qtr. annualized)	NM			0.56			NM			NM			0.18
Allowance / loans %	5.62		%	5.80		%	5.45		%	5.49		%	5.36		%
Allowance / net charge-offs	NM			10.13		x	NM			NM			29.16		x

Other Consumer
Period-end loans ($ millions)	$	6		$	6		$	6		$	8		$	8		*	(25)%
30+ Delinq. % (a)	1.44		%	1.95		%	1.84		%	1.73		%	1.62		%
NPL %	1.92			1.93			1.90			1.82			1.83
Charge-offs % (qtr. annualized)	1.14			NM			NM			NM			NM
Allowance / loans %	0.69		%	0.35		%	0.08		%	2.26		%	2.50		%
Allowance / net charge-offs	0.60		x	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.



FHN: PORTFOLIO METRICS
Unaudited


C&I Portfolio: $12.8 Billion (63.4% of Total Loans) as of September 30, 2017
	% OS
General Corporate, Commercial, and Business Banking Loans	80%
Loans to Mortgage Companies	15%
Bank Holding Company Loans	3%
Trust Preferred Loans	2%

Consumer Real Estate (primarily Home Equity) Portfolio: $4.4 Billion (21.7% of Total Loans)



Origination LTV and FICO for Portfolio as of September 30, 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	%	15	%
FICO score 720-739	1	%	4	%	4	%	3	%
FICO score 700-719	1	%	3	%	3	%	2	%
FICO score 660-699	1	%	3	%	3	%	2	%
FICO score 620-659	—	%	1	%	1	%	1	%
FICO score less than 620	—	%	—	%	—	%	1	%



Origination LTV and FICO for Portfolio - Regional Bank as of September 30, 2017	Loan-to-Value
(excludes whole loan insurance)	<=60%		>60% - <=80%		>80% - 90%		>90%
FICO score greater than or equal to 740	11	%	25	%	16	%	17	%
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	%	—	%
FICO score less than 620	—	%	—	%	—	%	1	%



Origination LTV and FICO for Portfolio - Non-Strategic as of September 30, 2017	Loan-to-Value
(excludes whole loan insurance)	<=60%		>60% - <=80%		>80% - 90%		>90%
FICO score greater than or equal to 740	8	%	18	%	15	%	5	%
FICO score 720-739	2	%	6	%	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	$0.8	141	80%	724		20%	21%
2008	0.2	112	75%	746		74%	51%
2009	0.1	100	72%	744		85%	61%
2010	0.1	86	77%	753		92%	72%
2011	0.2	74	76%	758		89%	85%
2012	0.4	63	77%	763		89%	92%
2013	0.4	52	78%	754		85%	87%
2014	0.4	39	82%	757		86%	90%
2015	0.6	26	80%	758		81%	89%
2016	0.7	14	80%	760		84%	90%
2017	0.5	4	83%	759		80%	89%
Total	$4.4	58	79%	751	(a)	72%	74%

(a) 751 average portfolio origination FICO; 749 weighted average portfolio FICO (refreshed).

FHN NON-GAAP TO GAAP RECONCILIATION

Quarterly, Unaudited



(Dollars and shares in thousands, except per share data)	3Q17			2Q17			1Q17			4Q16			3Q16

Tangible Common Equity (Non-GAAP)
(A) Total equity (GAAP)	$	2,883,551		$	2,826,888		$	2,740,460		$	2,705,084		$	2,744,582
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	$	2,492,496		$	2,435,833		$	2,349,405		$	2,314,029		$	2,353,527
Less: Intangible assets (GAAP) (b)	279,492			281,456			211,156			212,388			213,688
(C) Tangible common equity (Non-GAAP)	$	2,213,004		$	2,154,377		$	2,138,249		$	2,101,641		$	2,139,839

Tangible Assets (Non-GAAP)
(D) Total assets (GAAP)	$	29,622,636		$	29,369,956		$	29,618,600		$	28,555,231		$	28,449,222
Less: Intangible assets (GAAP) (b)	279,492			281,456			211,156			212,388			213,688
(E) Tangible assets (Non-GAAP)	$	29,343,144		$	29,088,500		$	29,407,444		$	28,342,843		$	28,235,534

Average Tangible Common Equity (Non-GAAP)
(F) Average total equity (GAAP)	$	2,866,757		$	2,778,169		$	2,722,668		$	2,746,828		$	2,718,319
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	$	2,475,702		$	2,387,114		$	2,331,613		$	2,355,773		$	2,327,264
Less: Average intangible assets (GAAP) (b)	280,575			281,326			211,757			213,019			214,260
(H) Average tangible common equity (Non-GAAP)	$	2,195,127		$	2,105,788		$	2,119,856		$	2,142,754		$	2,113,004

Annualized Net Income Available to Common Shareholders
(I) Net income available to common shareholders (annualized) (GAAP)	$	267,148		$	364,206		$	219,073		$	212,017		$	251,434

Period-end Shares Outstanding
(J) Period-end shares outstanding	234,231			234,135			233,883			233,624			233,235

Ratios
(I)/(G) Return on average common equity (“ROE”) (GAAP)	10.79		%	15.26		%	9.40		%	9.00		%	10.80		%
(I)/(H) Return on average tangible common equity (“ROTCE”) (Non-GAAP)	12.17		%	17.30		%	10.33		%	9.89		%	11.90		%
(A)/(D) Total equity to total assets (GAAP)	9.73		%	9.63		%	9.25		%	9.47		%	9.65		%
(C)/(E) Tangible common equity to tangible assets (“TCE/TA”) (Non-GAAP)	7.54		%	7.41		%	7.27		%	7.42		%	7.58		%
(B)/(J) Book value per common share (GAAP)	$	10.64		$	10.40		$	10.05		$	9.90		$	10.09
(C)/(J) Tangible book value per common share (Non-GAAP)	$	9.45		$	9.20		$	9.14		$	9.00		$	9.17

(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.

Market-Indexed Deposits: Deposits with pricing tied to an index not administered by FHN. For FHN these are comprised of insured network deposits, correspondent banking deposits, and trust/sweep deposits.

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.

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