FIRST HORIZON CORP - FORM 8-K - EX-99.1 - EX-99.1 EARNINGS RELEASE - October 23, 2020

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EX-99.2 - EX-99 INVESTOR SLIDE PRESENTATION - FIRST HORIZON CORPfhn3q20earningsf.htm
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First Horizon National Corporation



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First Horizon National Corp. Reports Third Quarter Net Income Available to Common of $523 Million
and EPS of $0.95

Results include $269 million pre-tax, or $0.60 per share, of notable items largely related to the IBERIABANK merger

Adjusted net income available to common of $193 million or EPS of $0.35*

Reflects strong fee income and continued expense discipline partially offset by the impact of net interest income headwinds and a CECL reserve build of $13 million

ROCE of 28.49%; Adjusted ROTCE of 13.90%*

Tangible book value per share of $9.92 remained relatively stable

MEMPHIS, Tenn., October 23, 2020 – First Horizon National Corp. (NYSE: FHN or “First Horizon”) today reported third quarter 2020 net income available to common shareholders of $523 million, with earnings per share of $0.95. Third quarter 2020 results reflect the impact of the July 1, 2020, IBERIABANK Corporation merger (“IBKC Merger”) and the July 17, 2020, acquisition of 30 Truist branches ("Branch Acquisition") and include $269 million pre-tax, or $0.60 per share, from notable items largely related to the IBKC Merger. Excluding notable items, adjusted third quarter net income available to common shareholders totaled $193 million, or $0.35 per share.* Reported results prior to third quarter 2020 reflect legacy First Horizon results only.

“We achieved major milestones in third quarter 2020 with the completion of our merger of equals with IBERIABANK and the Truist branch acquisition,” said President and Chief Executive Officer Bryan Jordan. “We also delivered strong results despite continued macroeconomic and interest rate headwinds tied to the pandemic, highlighted by strong execution in our counter-cyclical fee income businesses and continued expense discipline.”

Jordan continued, “I am incredibly proud of the hard work and dedication of our associates as they continue to focus on delivering for our clients, communities and shareholders as we bring our two companies together. Our team has been extraordinarily resilient and focused through this year of great change. The benefits of our more diversified product set, enhanced scale, expanded presence in attractive southern markets and client-centric culture provide a strong framework to continue to deliver a superior client experience with enhanced productivity and synergies. The integration is well underway, and I have even more confidence today than when we announced the merger that we are better together and well positioned to deliver for all of our stakeholders."

Third Quarter 2020 Notable Items
Notable Items
Quarterly, Unaudited
(Millions)3Q202Q203Q19
Summary of Notable Items:
Purchase accounting gain$532 $— $— 
Merger/acquisition non-PCD provision expense(147)— — 
Merger/acquisition expense(101)(14)(9)
Charitable contributions(15)— — 
Other notable expenses— — (22)
Total Notable items$269 $(14)$(31)

*References to "Adjusted" results exclude notable items and are Non-GAAP Financial Measures. Please see page 5 for information on our use of Non-GAAP measures and a reconciliation of these measures to GAAP beginning on page 23.

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First Horizon National Corporation
Third quarter 2020 results include a net $269 million of notable items primarily tied to the IBKC Merger/Branch Acquisition including:
•A $532 million non-taxable merger purchase accounting gain in other noninterest income
•$101 million of merger/acquisition-related expense largely recorded in personnel, outside services and other non interest income including the Louisiana Foundation contribution
•$147 million of provision for loan losses related to non-purchase credit deteriorated (non-PCD) loans
•Results also reflect $15 million of other noninterest expense tied to the donation of Paycheck Protection Plan (PPP) fees to the First Horizon Foundation to assist low- and moderate -income communities.
Excluding the notable items, the IBKC Merger and Branch Acquisition added $225 million of net interest income,$91 million of noninterest income and $170 million of noninterest expense.

Third Quarter 2020 Highlights*
•Net income available to common of $523 million with EPS of $.0.95; Adjusted net income available to common of $193 million, or $0.35 per share excluding merger-related and other notable items*
•Total revenue of $1.4 billion increased $843 million from second quarter 2020 driven by the $532 merger purchase accounting gain and $313 million impact of the IBKC Merger
•Results reflect strength in fixed income and mortgage banking, which helped to mitigate net interest income headwinds and continued COVID-19 impacts on traditional banking businesses
•Expense of $587 million includes $101 million of notable items largely tied to IBKC Merger; Adjusted expense of $471 million reflects the impact of the IBKC Merger and continued expense discipline with the benefit of an additional $8 million of merger cost saves*
•Efficiency ratio improved to 43.31% from 62.74% at June 30, 2020; Adjusted efficiency ratio of 57.26%*
•Provision for credit losses totaled $227 million and included $147 million related to non-purchase credit deteriorated loans included in notable items; Adjusted provision expense of $80 million reflects a $13 million CECL-related reserve build*
•Tangible book value per share of $9.92 remained relatively stable at September 30, 2020
•ROCE of 28.49% with Adjusted ROTCE of 13.90%*; estimated CET 1 of 9.15% and total capital of 10.19%
•Period-end loan-to-deposit ratio of 87%
Strategic Plan Update
•Achieved merger cost saves of approximately $18 million year to date, with $8 million in third quarter 2020; targeting $170 million annualized in 2022
•Merger integration well underway with significant progress across key milestones including finalizing 100% of major tech system decisions, completing HR system conversion, aligning benefit plans and establishing go-to-market and organizational models
•Three-year strategic plan to be finalized in fourth quarter 2020
COVID-19 Update:
•Donated $15 million of fees associated with PPP to assist low- and moderate-income communities
•PPP portfolio of $4.2 billion, providing aid and jobs for more than 500,000 clients' employees
•Loan deferrals, excluding PPP, declined to 2.4% from a peak of 12.8%
•Closely monitoring industries currently impacted by COVID-19 disruptions with deep dive portfolio reviews
•Continue to prioritize health and safety, and remain focused on executing the business continuity plan, proactive client outreach and communication, and risk management
*References to "Adjusted" results exclude notable items and are Non-GAAP Financial Measures. Please see page 5 for information on our use of Non-GAAP measures and a reconciliation of these measures to GAAP beginning on page 23.

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First Horizon National Corporation

SUMMARY RESULTS, Continued
Quarterly, Unaudited
3Q20 change vs.
(In millions, except EPS)3Q202Q203Q192Q203Q19
$/bp%$/bp%
Income Statement
Net interest income$532 $305 $301 $227 74 $231 77 
Noninterest income1
823 206 172 617 NM651 NM
      Total revenue1,355 512 472 843 NM883 NM
Noninterest expense587 321 308 266 83 279 91 
Pre-provision net revenue2
768 191 164 577 NM604 NM
Provision for credit losses3
227 121 14 106 88 213 NM
Income before income taxes541 69 150 472 NM391 NM
Provision for income taxes2 13 36 (11)(85)(34)(94)
Net income539 57 114 482 NM425 NM
Net income attributable to noncontrolling interest3 3 3 — *— *
Net income/(loss) attributable to controlling interest536 54 111 482 NM425 NM
Preferred stock dividends13 2 2 11 NM11 NM
Net income/(loss) available to common shareholders$523 $52 $110 $471 NM$413 NM
Adjusted net income4
$208 $68 $138 $140 NM$70 51 
Adjusted net income/loss available to common shareholders4
$193 $64 $134 $129 NM$59 44 
Common stock information
EPS$0.95 $0.17 $0.35 $0.78 NM$0.60 NM
Adjusted EPS4
$0.35 $0.20 $0.43 $0.15 67 $(0.08)19 
Diluted shares551 313 314 238 76 237 75 
Key performance metrics
Net interest margin2.84 %2.90 %3.21 %(6)bp(37)bp
Efficiency ratio43.31 %62.74 %65.26 %NMNM
Adjusted efficiency ratio4
57.26 %59.95 %58.61 %(269)(135)
Effective income tax rate— %18 %24 %NMNM
Return on average assets2.63 %0.48 %1.08 %215155
Adjusted return on average assets4
1.01 %0.57 %1.31 %44(30)
Return on average common equity (“ROCE")28.49 %4.50 %9.50 %NMNM
Return on average tangible common equity (“ROTCE”)4
37.75 %6.74 %14.49 %NMNM
Adjusted return on average tangible common equity (“ROTCE”)4
13.90 %8.26 %17.73 %564(383)
Noninterest income as a % of total revenue60.72 %40.32 %36.25 %NMNM
Adjusted noninterest income as a % of total revenue4
35.32 %40.32 %36.25 %(500)(93)
Balance Sheet (billions)
Average loans$60 $34 $30 $26 77 $30 NM
Average deposits$67 $38 $32 $30 79 $35 NM
Average assets$82 $48 $42 $34 70 $40 95 
Average common equity$7 $5 $5 $3 56 $3 60 
Asset Quality Highlights
Allowance to loans and leases ratio1.65 %1.64 %0.62 %
Net charge-off ratio0.44 %0.20 %0.19 %
Nonperforming loan and leases ratio0.75 %0.69 %0.55 %
Capital Highlights (current quarter is an estimate)
Common Equity Tier 19.15 %9.25 %9.01 %
Tier 110.19 %10.69 %9.97 %
Total Capital11.97 %12.47 %11.01 %
Leverage8.25 %8.55 %9.05 %
Numbers may not foot due to rounding.
Certain previously reported amounts have been reclassified to agree with current presentation.
See footnote disclosures on page 22.





*References to "Adjusted" results exclude notable items and are Non-GAAP Financial Measures. Please see page 5 for information on our use of Non-GAAP measures and a reconciliation of these measures to GAAP beginning on page 23.

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First Horizon National Corporation
Net interest income
Net interest income of $532 million increased $227 million from second quarter 2020 driven by the $225 million impact of the IBKC Merger and Branch Acquisition and included a net $44 million benefit, or 20 basis points of net interest margin related to net purchase accounting accretion. Net interest margin of 2.84% compares with 2.90% in the prior quarter, largely reflecting continued headwinds from the low-rate environment. Net interest margin results also included faster prepayment speeds and the impact of excess cash balances.

Loans and leases
Loan and lease balances at September 30, 2020 of $59.7 billion increased $27.0 billion from June 30, 2020, driven by the addition of the IBERIABANK loan portfolio and Branch Acquisition. Period-end results also reflect a $1.6 billion increase in loans to mortgage companies.

Deposits
Deposits of $68.4 billion at September 30, 2020, increased from $37.8 billion at June 30, 2020, driven by the impact of the IBKC Merger and Branch Acquisition. Results also reflect continued higher levels of customer liquidity. Interest bearing deposit costs of 36 basis points improved 2 basis points linked quarter, reflecting lower rates and pricing discipline.

Noninterest income
Noninterest income of $823 million increased $617 million from second quarter 2020 driven by the $623 million impact of the IBKC Merger and Branch Acquisition, which included $532 million of notable items. Adjusted noninterest income of $291 million increased $85 million driven by the addition of IBKC.*

Noninterest expense
Noninterest expense of $587 million increased $266 million from second quarter 2020 driven by the $170 million impact of the IBKC Merger and Branch Acquisition and included $116 million of notable items. Adjusted noninterest expense totaled $471 million in third quarter 2020 and reflected a net $8 million benefit from merger-related cost saves.*

Asset Quality
Net charge-offs of $67 million, or 44 basis points, compared with $17 million, or 20 basis points in second quarter 2020 largely reflecting the impact of the IBKC Merger and losses tied to the energy portfolio.

Nonperforming loans of $447 million compared with $226 million in second quarter 2020, largely reflecting the impact of the IBKC Merger. Third quarter 2020 allowance to nonperforming coverage ratio at 221% compares with 238% from second quarter 2020. Third quarter 2020 nonperforming loans to loans ratio of 75 basis points compared with 69 basis points at second quarter 2020.

The allowance to loan ratio remained relatively stable at 1.65% up from 1.64% in the second quarter.
Provision for credit losses of $227 million increased $106 million from second quarter 2020 driven by a
$147 million notable item impact tied to the non-PCD loan portfolio impact of the IBKC Merger and Branch Acquisition. Adjusted provision for credit losses of $80 million decreased $41 million linked quarter.*

Capital
Estimated CET1 ratio of 9.15% in third quarter 2020 compared with 9.25% in second quarter 2020. There were no share repurchases in third quarter 2020.
Income tax
The effective tax rate of 0.41% in third quarter 2020 compared to 18.40% in the second quarter 2020 largely reflecting the impact of the IBKC Merger purchase accounting gain which is nontaxable. Excluding the impact from the merger, the adjusted tax rate was 23%.*

*References to "Adjusted" results exclude notable items and are Non-GAAP Financial Measures. Please see page 5 for information on our use of Non-GAAP measures and a reconciliation of these measures to GAAP beginning on page 23.

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First Horizon National Corporation
Conference call information
Analysts, investors and interested parties may call toll-free starting at 8:15 a.m. CT on October 23 by dialing 1-888-317-6003 (if calling from the U.S.) or 412-317-6061 (if calling from outside the U.S) and entering access code 4874702. The conference call will begin at 8:30 a.m. CT.

Participants can also opt to listen to the live audio webcast with the accompanying slide presentation at http://ir.fhnc.com/Event.

A replay of the call will be available beginning at noon CT on October 23 until midnight CT on November 6. To listen to the replay, dial 1-877-344-7529 (U.S. callers) or 412-317-0088 (international callers); the access code is 10148078. A replay of the webcast will also be available at http://ir.fhnc.com/Event by midnight CT on October 23 and will be archived on the site for one year.

Forward-Looking Statements

This communication may contain forward-looking information, including guidance, involving significant risks and uncertainties. Forward-looking information is 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 results stated in or suggested by 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; ability to execute business plans; regional, national, and world-wide political developments; recent and future legislative and regulatory developments; inflation or deflation; market (particularly real estate market) and monetary fluctuations; pestilence; man-made or natural disasters; customer, investor and regulatory responses to any of those conditions or events; matters mentioned in this release; critical accounting estimates; FHN’s success in executing its business plans and strategies following its 2020 merger with IBERIABANK Corporation, and managing the risks involved; the potential impacts on FHN’s businesses of the coronavirus COVID-19 pandemic, including negative impacts from quarantines, market declines, and volatility, and changes in customer behavior related to COVID-19; and other factors described in FHN's annual report on Form 10-K, FHN’s other recent filings with the SEC, and FHN’s most recent earnings release and related materials. FHN disclaims any obligation to update any forward-looking statements to reflect future events or developments, or changes in expectations.

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; and 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.
 
*References to "Adjusted" results exclude notable items and are Non-GAAP Financial Measures. Please see page 5 for information on our use of Non-GAAP measures and a reconciliation of these measures to GAAP beginning on page 23.

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First Horizon National Corporation
The non-GAAP measures presented in this earnings release are pre-provision net revenue ("PPNR"), return on average tangible common equity (“ROTCE”), tangible common equity (“TCE”) to tangible assets (“TA”), and tangible book value ("TBV") per common share, and various consolidated and segment results and performance measures and ratios adjusted for notable items.

Refer to the tabular reconciliation of non-GAAP to GAAP measures and presentation of the most comparable GAAP items beginning on page 23.





*References to "Adjusted" results exclude notable items and are Non-GAAP Financial Measures. Please see page 5 for information on our use of Non-GAAP measures and a reconciliation of these measures to GAAP beginning on page 23.

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First Horizon National Corporation
FHN CONSOLIDATED INCOME STATEMENT
Quarterly, Unaudited
     3Q20 change vs.
(In millions, except per share data)3Q202Q201Q204Q193Q192Q203Q19
$ %$ %
Interest income$598 $347 $378 $404 $407 $251 72 $191 47 
Interest expense 66 41 76 93 107 25 61 (41)(38)
Net interest income532 305 303 311 301 227 74 231 77 
Noninterest income:
Fixed income111 112 96 81 78 (1)(1)33 42 
Mortgage banking and title66 4 2 4 2 62 NM64 NM
Brokerage, trust, and insurance30 22 23 22 22 8 36 8 36 
Service charges and fees50 35 36 39 40 15 43 10 25 
Card and digital banking fees17 12 12 14 13 5 42 4 31 
Deferred compensation income4 8 (10)3 — (4)(50)4 NM
Other noninterest income1
546 12 15 20 17 534 NM529 NM
Total noninterest income823 206 175 183 172 617 NM651 NM
Total revenue1,355 512 478 495 472 843 NM883 NM
Noninterest expense:
Personnel expenses:
Salaries and benefits201 111 113 112 111 90 81 90 81 
Incentives and commissions126 79 81 63 55 47 59 71 NM
Deferred compensation expense3 9 (10)4 1 (6)(67)2 NM
Total personnel expenses329 200 183 179 167 129 65 162 97 
Occupancy and equipment77 46 44 44 42 31 67 35 83 
Outside services78 38 38 54 47 40 NM31 66 
Amortization of intangible assets15 5 5 6 6 10 NM9 NM
Other noninterest expense89 31 31 45 46 58 NM43 93 
Total noninterest expense587 321 302 328 308 266 83 279 91 
Pre-provision net revenue2
768 191 175 166 164 577 NM604 NM
Provision for credit losses3
227 121 154 9 14 106 88 213 NM
Income before income taxes541 69 21 157 150 472 NM391 NM
Provision for income taxes2 13 5 36 36 (11)(85)(34)(94)
Net income539 57 16 121 114 482 NM425 NM
Net income attributable to noncontrolling interest3 3 3 3 3 — *— *
Net income attributable to controlling interest536 54 14 118 111 482 NM425 NM
Preferred stock dividends13 2 2 2 2 11 NM11 NM
Net income available to common shareholders$523 $52 $12 $117 $110 $471 NM$413 NM
Common Share Data
EPS$0.95 $0.17 $0.04 $0.38 $0.35 $0.78 NM$0.60 NM
Basic shares550 312 312 311 312 238 76 238 76 
Diluted EPS$0.95 $0.17 $0.04 $0.37 $0.35 $0.78 NM$0.60 NM
Diluted shares551 313 313 313 314 238 76 237 75 
Effective tax rate— %18 %22 %23 %24 %
Numbers may not foot due to rounding.
Certain previously reported amounts have been reclassified to agree with current presentation.
See footnote disclosures on page 22.
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First Horizon National Corporation

FHN ADJUSTED4 FINANCIAL DATA - SEE NOTABLE ITEMS ON PAGE 9
Quarterly, Unaudited
     3Q20 change vs.
(In millions, except per share data)3Q202Q201Q204Q193Q192Q203Q19
$%$%
Adjusted noninterest income:
Fixed income$111 $112 $96 $81 $78 $(1)(1)$33 42 
Mortgage banking and title66 4 2 4 2 62 NM64 NM
Brokerage, trust, and insurance30 22 23 22 22 8 36 8 36 
Service charges and fees50 35 36 39 40 15 43 10 25 
Card and digital banking fees17 12 12 14 13 5 42 4 31 
Deferred compensation income4 8 (10)3 — (4)(50)4 NM
Adjusted other noninterest income14 12 15 20 17 2 17 (3)(18)
Adjusted total noninterest income$291 $206 $175 $183 $172 $85 41 $119 69 
Adjusted noninterest expense:
Adjusted personnel expenses:
Adjusted salaries and benefits$200 $107 $112 $107 $109 $93 87 $91 83 
Adjusted Incentives and commissions91 79 81 63 59 12 15 32 54 
Deferred compensation expense3 9 (10)4 1 (6)(67)2 NM
Adjusted total personnel expenses294 195 182 174 168 99 51 126 75 
Adjusted occupancy and equipment73 46 44 44 42 27 59 31 74 
Adjusted outside services46 33 37 36 35 13 39 11 31 
Adjusted amortization of intangible assets14 5 5 6 6 9 NM8 NM
Adjusted other noninterest expense45 27 28 31 25 18 67 20 80 
Adjusted total noninterest expense$471 $307 $296 $291 $277 $164 53 $194 70 
Adjusted pre-provision net revenue4
$352 $205 $181 $203 $196 $147 72 $156 80 
Adjusted provision for credit losses3
$80 $121 $154 $9 $14 $(41)(34)$66 NM
Adjusted net income available to common shareholders$193 $64 $17 $147 $134 $129 NM$59 44 
Adjusted Common Share Data
Adjusted diluted EPS$0.35 $0.20 $0.05 $0.47 $0.43 $0.15 75 $(0.08)(19)
Diluted shares551 313 313 313 314 238 76 237 75 
Adjusted effective tax rate23 %18 %22 %22 %24 %
Numbers may not foot due to rounding.
Certain previously reported amounts have been reclassified to agree with current presentation.
See footnote disclosures on page 22.

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First Horizon National Corporation

NOTABLE ITEMS
Quarterly, Unaudited
     
(In millions)3Q202Q201Q204Q193Q19
Noninterest income:
Other noninterest income$(532)$— $— $— $— 
Total noninterest income$(532)$— $— $— $— 
Noninterest expense:
Personnel expenses:
Salaries and benefits$(1)$(5)$(1)$(4)$(3)
Incentives and commissions(34)— — — 4 
Deferred compensation expense— — — — — 
Total personnel expenses(35)(5)(1)(4)1 
Occupancy and equipment(4)— — — — 
Outside services(32)(5)(2)(18)(12)
Amortization of intangible assets(1)— — — — 
Other noninterest expense(44)(4)(3)(15)(21)
Total noninterest expense$(116)$(14)$(6)$(37)$(31)
Provision for credit losses$(147)$— $— $— $— 
Income before income taxes$(269)$14 $6 $37 $31 
Provision for income taxes61 3 1 7 7 
Net income/(loss) available to common shareholders$(331)$12 $5 $30 $24 


(Millions)3Q202Q201Q204Q193Q19
Summary of Notable Items:
Purchase accounting gain$532 $— $— $— $— 
Merger/acquisition non-PCD provision expense(147)— — — — 
Merger/acquisition expense*(101)(14)(6)(16)(9)
Charitable contributions(15)— — (11)— 
Other notable expenses— — — (10)(22)
Total notable items$269 $(14)$(6)$(37)$(31)
Numbers may not foot due to rounding
•3Q20 includes $20 million of charitable contributions to establish the First Horizon Louisiana Foundation.
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First Horizon National Corporation


     3Q20 change vs.
FINANCIAL RATIOS3Q202Q201Q204Q193Q192Q203Q19
Net interest margin2.84 %2.90 %3.16 %3.26 %3.21 %(2)(12)
Return on average assets2.63 %.48 %.15 %1.12 %1.08 %NMNM
Adjusted return on average assets4
1.01 %.57 %.19 %1.40 %1.31 %77(23)
Return on average common equity (“ROCE”)28.49 %4.50 %1.05 %9.97 %9.50 %NMNM
Return on average tangible common equity (“ROTCE”)4
37.75 %6.74 %1.59 %15.03 %14.49 %NMNM
Adjusted return on average tangible common equity (“ROTCE”)4
13.90 %8.26 %2.19 %18.88 %17.73 %68(22)
Noninterest income as a % of total revenue60.72 %40.32 %36.59 %37.05 %36.25 %5168
Adjusted noninterest income as a % of total revenue4
35.32 %40.32 %36.59 %37.05 %36.25 %(12)(3)
Efficiency ratio43.31 %62.74 %63.26 %66.35 %65.26 %(31)(34)
Adjusted efficiency ratio4
57.26 %59.95 %62.05 %58.88 %58.61 %(4)(2)
CAPITAL - PERIOD END (PRELIMINARY)
CET1 capital ratio9.15 %9.25 %8.54 %9.20 %9.01 %(1)2
Tier 1 capital ratio10.19 %10.69 %9.52 %10.15 %9.97 %(5)2
Total capital ratio11.97 %12.47 %10.78 %11.22 %11.01 %(4)9
Tier 1 leverage ratio8.25 %8.55 %9.00 %9.04 %9.05 %(4)(9)
Risk-weighted assets (“RWA”) (millions)$65 $37 $40 $37 $37 7676
Total equity to total assets 9.81 %10.71 %10.71 %11.72 %11.43 %(8)(14)
Tangible common equity/tangible assets (“TCE/TA”)4
6.78 %6.63 %6.81 %7.48 %7.20 %2(6)
Period-end shares outstanding (millions)555 312 312 311 311 7878
Cash dividends declared per common share$0.15 $0.15 $0.15 $0.14 $0.14 *7
Book value per common share$13.30 $14.96 $14.96 $15.04 $14.80 (11)(10)
Tangible book value per common share4
$9.92 $9.99 $9.96 $10.02 $9.76 (1)2
SELECTED BALANCE SHEET DATA
Loans-to-deposit ratio (period-end balances)87.28 %86.62 %96.97 %95.78 %97.86 %1(11)
Loans-to-deposit ratio (average balances)89.59 %90.52 %92.83 %93.68 %92.73 %(1)(3)
Full-time equivalent associates8,121 5,006 4,969 5,005 5,116 6259
Certain previously reported amounts have been reclassified to agree with current presentation.
See footnote disclosures on page 22..
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First Horizon National Corporation
FHN CONSOLIDATED PERIOD-END BALANCE SHEET
Quarterly, Unaudited 
     3Q20 change vs.
(In millions)3Q202Q201Q204Q193Q192Q203Q19
$%$%
Assets:      
Loans and leases:
Commercial, financial, and industrial (C&I)$33,656 $21,394 $22,124 $20,051 $20,294 $12,262 57 $13,362 66 
Commercial real estate12,511 4,813 4,640 4,337 4,229 7,698 NM8,282 NM
Consumer real estate12,328 6,052 6,119 6,177 6,245 6,276 NM6,083 97 
Credit card and other1,212 449 495 496 493 763 NM719 NM
Loans and leases, net of unearned income59,707 32,709 33,378 31,061 31,261 26,998 83 28,446 91 
Loans held for sale1,051 746 596 594 555 305 41 496 89 
Investment securities7,996 5,476 4,545 4,445 4,416 2,520 46 3,580 81 
Trading securities1,386 1,116 1,878 1,346 1,395 270 24 (9)(1)
Interest-bearing deposits with banks5,443 3,136 671 482 364 2,307 74 5,079 NM
Federal funds sold and securities purchased under agreements to resell593 415 592 633 746 178 43 (153)(21)
Total interest earning assets76,176 43,598 41,659 38,562 38,737 32,578 75 37,439 97 
Cash and due from banks1,075 604 538 634 750 471 78 325 43 
Goodwill and other intangible assets, net1,876 1,552 1,558 1,563 1,569 324 21 307 20 
Premises and equipment, net756 448 448 455 452 308 69 304 67 
Allowance for loan and lease losses5
(988)(538)(444)(200)(193)(450)(84)(795)NM
Other assets4,135 2,980 3,439 2,297 2,403 1,155 39 1,732 72 
Total assets$83,030 $48,645 $47,197 $43,311 $43,718 $34,385 71 $39,312 90 
Liabilities and Shareholders' Equity:
Deposits:
Savings$26,573 $13,532 $13,860 $11,665 $11,489 $13,041 96 $15,084 NM
Time deposits5,526 2,656 3,058 3,618 4,176 2,870 NM1,350 32 
Other interest-bearing deposits14,925 9,784 8,561 8,717 8,011 5,141 53 6,914 86 
Total interest-bearing deposits47,025 25,972 25,480 24,001 23,676 21,053 81 23,349 99 
Trading liabilities477 233 453 506 720 244 NM(243)(34)
Short-term borrowings2,142 2,392 5,325 3,518 3,948 (250)(10)(1,806)(46)
Term borrowings2,162 2,032 793 791 1,195 130 6 967 81 
Total interest-bearing liabilities51,805 30,628 32,050 28,816 29,539 21,177 69 22,266 75 
Noninterest-bearing deposits21,384 11,788 8,940 8,429 8,269 9,596 81 13,115 NM
Other liabilities1,696 1,020 1,152 990 914 676 66 782 86 
Total liabilities74,885 43,436 42,142 38,235 38,722 31,449 72 36,163 93 
Shareholders' Equity:
Preferred stocks470 240 96 96 96 230 96 374 NM
Common stocks347 195 195 195 194 152 78 153 79 
Capital surplus5,061 2,941 2,939 2,931 2,925 2,120 72 2,136 73 
Retained earnings5
2,111 1,672 1,667 1,798 1,726 439 26 385 22 
Accumulated other comprehensive loss, net(140)(135)(136)(240)(241)(5)(4)101 42 
Combined shareholders' equity7,849 4,913 4,760 4,781 4,701 2,936 60 3,148 67 
Noncontrolling interest295 295 295 295 295 — *— *
Total shareholders' equity8,144 5,208 5,056 5,076 4,996 2,936 56 3,148 63 
Total liabilities and shareholders' equity$83,030 $48,645 $47,197 $43,311 $43,718 $34,385 71 $39,312 90 
Numbers may not foot due to rounding.
Certain previously reported amounts have been reclassified to agree with current presentation.
See footnote disclosures on page 22.
11
First Horizon National Corporation
FHN CONSOLIDATED AVERAGE BALANCE SHEET
Quarterly, Unaudited 
     3Q20 change vs.
(In millions)3Q202Q201Q204Q193Q192Q203Q19
$%$%
Assets:      
Loans and leases:      
Commercial, financial, and industrial (C&I)$34,051 $22,694 $19,470 $19,740 $18,966 $11,357 50 $15,085 80 
Commercial real estate12,414 4,710 4,422 4,264 4,269 7,704 NM8,145 NM
Consumer real estate12,444 6,087 6,134 6,194 6,283 6,357 NM6,161 98 
Credit card and other1,209 476 498 509 498 733 NM711 NM
Loans and leases, net of unearned income60,118 33,968 30,524 30,706 30,016 26,150 77 30,102 NM
Loans held-for-sale985 731 590 582 455 254 35 530 NM
Investment securities8,580 4,531 4,457 4,438 4,398 4,049 89 4,182 95 
Trading securities1,194 1,420 1,831 1,264 1,391 (226)(16)(197)(14)
Interest-bearing deposits with banks3,616 1,620 548 586 546 1,996 NM3,070 NM
Federal funds sold and securities purchased under agreements to resell500 422 827 656 572 78 18 (72)(13)
Total interest earning assets74,992 42,692 38,778 38,232 37,379 32,300 76 37,613 NM
Cash and due from banks1,028 562 610 610 596 466 83 432 72 
Goodwill and other intangibles assets, net1,794 1,555 1,560 1,566 1,572 239 15 222 14 
Premises and equipment, net747 452 451 451 452 295 65 295 65 
Allowances for loan and lease losses5
(980)(476)(354)(196)(197)(504)NM(783)NM
Other assets4,103 3,150 2,507 2,223 2,139 953 30 1,964 92 
Total assets$81,683 $47,934 $43,552 $42,886 $41,941 $33,749 70 $39,742 95 
Liabilities and shareholders' equity:
Deposits:
Savings$25,648 $14,118 $12,117 $11,580 $11,696 $11,530 82 $13,952 NM
Time deposits5,783 2,836 3,357 3,934 4,330 2,947 NM1,453 34 
Other interest-bearing deposits14,771 9,256 8,743 8,721 8,110 5,515 60 6,661 82 
Total interest-bearing deposits46,202 26,211 24,216 24,235 24,136 19,991 76 22,066 91 
Trading liabilities360 352 751 586 501 8 2 (141)(28)
Short-term borrowings2,469 2,603 3,211 2,709 2,145 (134)(5)324 15 
Term borrowings2,172 1,426 791 928 1,186 746 52 986 83 
Total interest-bearing liabilities51,202 30,593 28,967 28,458 27,967 20,609 67 23,235 83 
Noninterest-bearing deposits20,904 11,316 8,666 8,543 8,236 9,588 85 12,668 NM
Other liabilities1,505 908 915 845 775 597 66 730 94 
Total liabilities73,611 42,816 38,550 37,846 36,979 30,795 72 36,632 99 
Shareholders' Equity:
Preferred stock468 150 96 96 96 318 NM372 NM
Common stock 345 195 195 195 195 150 77 150 77 
Capital surplus5,041 2,941 2,935 2,928 2,934 2,100 71 2,107 72 
Retained earnings5
2,025 1,672 1,687 1,766 1,695 353 21 330 19 
Accumulated other comprehensive loss, net(103)(135)(206)(240)(253)32 24 150 59 
Combined shareholders' equity7,777 4,822 4,707 4,744 4,667 2,955 61 3,110 67 
Noncontrolling interest295 295 295 295 295 — *— *
Total shareholders' equity8,072 5,118 5,002 5,040 4,962 2,954 58 3,110 63 
Total liabilities and shareholders' equity$81,683 $47,934 $43,552 $42,886 $41,941 $33,749 70 $39,742 95 
Numbers may not foot due to rounding.
Certain previously reported amounts have been reclassified to agree with current presentation.
See footnote disclosures on page 22.
12
First Horizon National Corporation
FHN CONSOLIDATED NET INTEREST INCOME
Quarterly, Unaudited 
    3Q20 change vs.
(In millions)3Q202Q201Q204Q193Q192Q20 3Q19
$%$%
Interest Income:     
Loans and leases, net of unearned income:
Commercial$419 $243 $257 $280 $281 $176 72$138 49
Consumer141 65 71 76 78 76 NM63 81
Loans and leases, net of unearned income560 308 329 356 358 252 82202 56
Loans held-for-sale8 7 7 7 6 1 142 33
Investment securities25 25 28 29 29 — *(4)(14)
Trading securities6 9 13 10 11 (3)(33)(5)(45)
Interest-bearing deposits with banks1 — 2 2 3 1 NM(2)(67)
Federal funds sold and securities purchased under agreements— — 2 3 3 — NM(3)NM
Interest income$601 $349 $381 $407 $409 $252 72$192 47
Interest Expense:
Interest-bearing deposits:
Savings$25 $13 $26 $30 $37 $12 92$(12)(32)
Time deposits10 9 14 19 22 1 11(12)(55)
Other interest-bearing deposits7 3 14 18 19 4 NM(12)(63)
Total interest-bearing deposits42 25 54 67 79 17 68(37)(47)
Trading liabilities1 1 3 3 3 — *(2)(67)
Short-term borrowings1 1 10 12 12 — *(11)(92)
Term borrowings22 14 8 10 14 8 578 57
Interest expense66 41 76 93 107 25 61(41)(38)
Net interest income - tax equivalent basis535 308 305 314 302 227 74233 77
Fully taxable equivalent adjustment(3)(3)(2)(2)(2)— *(1)(50)
Net interest income$532 $305 $303 $311 $301 $227 74$231 77
Net interest income adjusted to a fully taxable equivalent (“FTE”) basis assuming a statutory federal income tax of 21 percent and, where applicable, state income taxes.
Numbers may not foot due to rounding.
Certain previously reported amounts have been reclassified to agree with current presentation.
See footnote disclosures on page 22.


13
First Horizon National Corporation
FHN CONSOLIDATED AVERAGE BALANCE SHEET: YIELDS AND RATES
Quarterly, Unaudited 
 3Q202Q201Q204Q193Q19
Assets:    
Earning assets:    
Loans and leases, net of unearned income:    
Commercial 3.59 %3.56 %4.33 %4.63 %4.78 %
Consumer4.11 4.00 4.33 4.51 4.55 
Loans and leases, net of unearned income 3.70 3.65 4.33 4.60 4.73 
Loans held-for-sale3.36 3.61 4.67 4.85 5.33 
Investment securities1.21 2.22 2.50 2.60 2.62 
Trading securities2.08 2.48 2.91 3.01 3.06 
Interest-bearing deposits with banks0.09 0.09 1.13 1.60 1.96 
Federal funds sold and securities purchased under agreements to resell0.04 (0.06)1.13 1.52 2.04 
Interest income/total earning assets3.19 %3.29 %3.94 %4.22 %4.35 %
Liabilities:
Interest-bearing liabilities:
Interest-bearing deposits:
Savings0.38 %0.36 %0.87 %1.04 %1.26 %
Time deposits0.72 1.45 1.80 2.06 2.15 
Other interest-bearing deposits0.20 0.13 0.65 0.81 0.94 
Total interest-bearing deposits0.36 0.38 0.90 1.10 1.29 
Trading liabilities0.77 1.11 1.76 2.02 2.33 
Short-term borrowings0.27 0.22 1.24 1.74 2.13 
Term borrowings 3.98 3.96 4.01 4.52 4.64 
Interest expense/total interest-bearing liabilities0.51 0.54 1.05 1.29 1.52 
Net interest spread2.68 %2.75 %2.89 %2.93 %2.83 %
Effect of interest-free sources used to fund earning assets0.16 0.15 0.27 0.33 0.38 
Net interest margin2.84 %2.90 %3.16 %3.26 %3.21 %
Total loan yield3.70 %3.65 %4.33 %4.60 %4.73 %
Total deposit cost0.25 %0.27 %0.67 %0.82 %0.96 %
Total funding cost0.36 %0.40 %0.81 %1.00 %1.17 %
Yields are adjusted to a FTE basis assuming a statutory federal income tax rate of 21 percent and, where applicable, state income taxes.
Earning assets yields are expressed net of unearned income.
Loan yields include loan fees, cash basis interest income, and loans on nonaccrual status.
Certain previously reported amounts have been reclassified to agree with current presentation.
See footnote disclosures on page 22.

14
First Horizon National Corporation
FHN CONSOLIDATED NONPERFORMING LOANS AND LEASES ("NPL")
Quarterly, Unaudited 
As of 3Q20 change vs.
(In millions, except ratio data)3Q202Q201Q204Q193Q192Q203Q19
$%$%
Nonperforming loans and leases
Commercial, financial, and industrial (C&I)$213 $127 $96 $74 $77 $85 67$136 NM
Commercial real estate51 2 2 2 2 49 NM49 NM
Consumer real estate180 96 91 86 94 84 8787 93
Credit card and other3 — — — — 3 NM3 NM
Total nonperforming loans and leases$447 $226 $190 $162 $172 $221 98$274 NM
Asset Quality Ratio
Nonperforming loans and leases to loans and leases
Commercial, financial, and industrial (C&I)0.63 %0.60 %0.43 %0.37 %0.38 %
Commercial real estate0.41%0.04 %0.05 %0.04 %0.05 %
Consumer real estate1.46 %1.59 %1.49 %1.39 %1.50 %
Credit card and other0.24%0.06 %0.07 %0.07 %0.07 %
Total nonperforming loans and leases to loans and leases0.75%0.69%0.57%0.52%0.55%
Numbers may not foot due to rounding.
15
First Horizon National Corporation

FHN CONSOLIDATED LOANS AND LEASES 90 DAYS OR MORE PAST DUE AND ACCRUING
Quarterly, Unaudited
As of3Q20 change vs.
(In millions)3Q202Q201Q204Q193Q192Q203Q19
$%$%
Loans and leases 90 days or more past due and accruing
Commercial, financial, and industrial (C&I)$— $— $— $2 $2 $— (48)$(2)(93)
Commercial real estate— — — — — — NM— NM
Consumer real estate14 13 12 18 18 1 6(4)(23)
Credit card and other1 1 2 2 1 (1)(35)— (33)
Total loans and leases 90 days or more past due and accruing$15 $14 $14 $22 $21 $— 1$(6)(31)
Numbers may not foot due to rounding.
16
First Horizon National Corporation

FHN CONSOLIDATED NET CHARGE-OFFS
Quarterly, Unaudited
As of3Q20 change vs.
(In millions, except ratio data)3Q202Q201Q204Q193Q192Q203Q19
Charge-off, Recoveries and Related Ratios$%$%
Gross Charge-offs
Commercial, financial, and industrial (C&I)$69 $18 $7 $5 $19 $51 NM$51 NM
Commercial real estate4 — 1 — — 3 NM3 NM
Consumer real estate2 2 2 2 1 — (7)— 25
Credit card and other4 3 4 4 4 1 31— (10)
Total gross charge-offs$78 $23 $13 $12 $24 $55 NM$54 NM
Gross Recoveries
Commercial, financial, and industrial (C&I)$(3)$(1)$(1)$(2)$(3)$(2)NM$— 1
Commercial real estate(2)— (1)— — (2)NM(2)NM
Consumer real estate(5)(4)(4)(6)(5)(1)(33)— (5)
Credit card and other(1)(1)(1)(1)(1)— 8— 21
Total gross recoveries$(12)$(6)$(6)$(9)$(10)$(5)(87)$(2)(21)
Net Charge-offs (Recoveries)
Commercial, financial, and industrial (C&I)$66 $17 $6 $3 $15 $49 NM$51 NM
Commercial real estate1 — — — — 1 NM1 NM
Consumer real estate(3)(2)(1)(3)(4)(1)(72)— 3
Credit card and other3 2 3 3 3 1 58— (5)
Total net charge-offs$67 $17 $7 $3 $15 $50 NM$52 NM
Annualized Net Charge-off (Recovery) Rates
Commercial, financial, and industrial (C&I)0.77 %0.30 %0.12 %0.07 %0.32 %
Commercial real estate0.04 %(0.01)%— %(0.01)%0.02 %
Consumer real estate(0.11)%(0.13)%(0.08)%(0.21)%(0.23)%
Credit card and other0.83 %1.35 %2.12 %2.29 %2.11 %
Total loans and leases0.44 %0.20 %0.10 %0.04 %0.19 %
Numbers may not foot due to rounding.
17
First Horizon National Corporation

FHN CONSOLIDATED ALLOWANCE FOR LOAN AND LEASE LOSSES AND RESERVE FOR UNFUNDED COMMITMENTS
Quarterly, Unaudited
As of3Q20 Changes vs.
(In millions, except ratio data)3Q202Q201Q204Q193Q192Q203Q19
Summary of Changes in the Components of the Allowance For Credit Losses$%$%
Allowance for loan and lease losses - beginning$538 $444 $200 $193 $193 $93 21$345 NM
Cumulative effect of change in accounting principle:
Commercial, financial, and industrial (C&I)— — 19 — — — NM— NM
Commercial real estate— — (7)— — — NM— NM
Consumer real estate— — 93 — — — NM— NM
Credit card and other— — 2 — — — NM— NM
Total cumulative effect of change in accounting principles— — 106 — — — NM— NM
Allowance for loan and lease losses - beginning, adjusted$538 $444 $307 $193 $193 $93 21$345 NM
Acquired purchased credit deteriorated allowance for loan and lease losses:
Commercial, financial, and industrial (C&I)138 — — — — 138 NM138 NM
Commercial real estate100 — — — — 100 NM100 NM
Consumer real estate44 — — — — 44 NM44 NM
Credit card and other5 — — — — 5 NM5 NM
Total acquired purchased credit deteriorated allowance for loan and lease losses287 — — — — 287 NM287 NM
Charge-offs:
Commercial, financial, and industrial (C&I)(69)(18)(7)(5)(19)(51)NM(51)NM
Commercial real estate(4)— (1)— — (3)NM(3)NM
Consumer real estate(2)(2)(2)(2)(1)— 7— (25)
Credit card and other(4)(3)(4)(4)(4)(1)(31)— 10
Total charge-offs(78)(23)(13)(12)(24)(55)NM(54)NM
Recoveries:
Commercial, financial, and industrial (C&I)3 1 1 2 3 2 NM— (1)
Commercial real estate2 — 1 — — 2 NM2 NM
Consumer real estate5 4 4 6 5 1 33— 5
Credit card and other1 1 1 1 1 — (8)— (21)
Total Recoveries12 6 6 9 10 5 872 21
Provision for loan and lease losses:
Commercial, financial, and industrial (C&I)*99 81 119 12 13 18 2286 NM
Commercial real estate*52 10 19 — 3 42 NM49 NM
Consumer real estate*74 19 — (6)(4)55 NM78 NM
Credit card and other*5 — 7 3 3 5 NM2 62
Total provision for loan and lease losses*:
230 110 145 10 15 120 NM215 NM
Allowance for loan and lease losses - ending$988 $538 $444 $200 $193 $450 84$795 NM
Reserve for unfunded commitments - beginning$50 $39 $6 $7 $8 $11 28$43 NM
Cumulative effect of change in accounting principle— — 24 — — — NM— NM
Acquired reserve for unfunded commitments41 — — — — 41 NM41 NM
Provision for unfunded commitments(3)11 9 (1)(1)(14)NM(2)NM
Reserve for unfunded commitments - ending$89 $50 $39 $6 $7 $38 76$82 NM
Total allowance for credit losses- ending$1,077 $588 $484 $206 $200 $488 83$877 NM
Numbers may not foot due to rounding. * 3Q20 includes $30 million, $44 million, $70 million, and $3 million recognized within the C&I, Commercial real estate, Consumer real estate, and Credit card and other loan and leases portfolios, respectively, of provision expense associated with the recognition of Non-PCD provision related to mergers/acquisitions.
18
First Horizon National Corporation

FHN CONSOLIDATED ASSET QUALITY RATIOS - ALLOWANCE FOR LOAN AND LEASE LOSSES
Quarterly, Unaudited
As of
3Q202Q201Q204Q193Q19
Allowance for loans and lease losses to loans and leases
Commercial, financial, and industrial (C&I)1.45 %1.49 %1.15 %0.61 %0.56 %
Commercial real estate1.66 %1.19 %1.03 %0.83 %0.84 %
Consumer real estate2.15 %2.38 %2.01 %0.46 %0.49 %
Credit card and other2.11 %4.03 %3.91 %2.68 %2.58 %
Total allowance for loans and lease losses to loans and leases1.65 %1.64 %1.33 %0.64 %0.62 %
Allowance for loans and lease losses to nonperforming loans and leases
Commercial, financial, and industrial (C&I)230 %250 %265 %165 %149 %
Commercial real estate407 %2,771 %2,175 %1,979 %1,839 %
Consumer real estate147 %149 %135 %33 %33 %
Credit card and other890 %7,114 %5,368 %3,975 %3,691 %
Total allowance for loans and lease losses to nonperforming loans and leases221 %238 %234 %124 %112 %
Allowance for loans and lease losses to net charge offs
Commercial, financial, and industrial (C&I)186 %463 %1,088 %925 %187 %
Commercial real estate4,031 %(15,040)%143,661 %(11,151)%4,770 %
Consumer real estate(1,919)%(1,770)%(2,456)%(214)%(216)%
Credit card and other255 %282 %183 %114 %121 %
Total allowance for loans and lease losses to net charge offs373 %805 %1,533 %1,776 %333 %
19
First Horizon National Corporation
FHN REGIONAL BANKING
Quarterly, Unaudited 
     3Q20 change vs.
 3Q202Q201Q204Q193Q192Q203Q19
$/bp%$/bp%
Income Statement (millions)      
Net interest income$584 $350 $300 $311 $302 $234 67 $282 93 
Noninterest income172 79 82 90 86 93 NM86 NM
Total revenue756 429 382 400 388 327 76 368 95 
Noninterest expense374 192 203 203 194 182 95 180 93 
Pre-provision net revenue2
383 236 179 197 194 147 62 189 97 
Provision for credit losses3
227 120 155 14 20 107 89 207 NM
Income before income tax expense155 117 25 183 175 38 32 (20)(11)
Income tax expense35 27 4 43 42 8 30 (7)(17)
Net income$121 $90 $20 $140 $133 $31 34 $(12)(9)
Average Balances (billions)
Total loans and leases$59.11 $33.11 $29.61 $29.73 $28.97 $26.00 79 $30.14 NM
Interest-earning assets59.45 33.16 29.66 29.78 29.01 26.29 79 30.44 NM 
Total assets64.38 35.74 32.18 32.46 31.63 28.64 80 32.75 NM 
Total deposits63.47 33.79 30.58 30.42 30.05 29.68 88 33.42 NM 
Key Metrics
Net interest margin6
3.92 %4.27 %4.09 %4.17 %4.16 %(35)(8)(24)(6)
Efficiency ratio 49.40 44.87 53.06 50.70 49.94 453 10 (54)(1)
Loans-to-deposits ratio (period-end balances)0.91 0.93 1.06 0.98 1.01 (2)(2)(10)(10)
Loans-to-deposits ratio (average-end balances)0.93 0.98 0.97 0.98 0.96 (5)(5)(3)(3)
Return on average assets (annualized)0.75 1.02 0.26 1.71 1.67 (27)(26)(92)(55)
Return on allocated equity7
14.74 11.64 2.72 18.14 17.52 310 27 (278)(16)
Financial center locations493 269 269 269 270 224 83 223 83 
Numbers may not add to total due to rounding.
Certain previously reported amounts have been reclassified to agree with current presentation.
See footnote disclosures on page 22.
20
First Horizon National Corporation
FHN FIXED INCOME
Quarterly, Unaudited
     3Q20 change vs.
 3Q202Q201Q204Q193Q192Q203Q19
$/bp%$/bp%
Income Statement (millions)      
Net interest income$12 $14 $11 $7 $5 $(2)(14)$7 NM
Noninterest income111 113 96 81 78 (2)(2)33 42 
Total revenue122 127 107 88 83 (5)(4)39 47 
Noninterest expense67 83 81 62 68 (16)(19)(1)(1)
Income before income tax expense55 44 26 26 16 11 25 39 NM
Income tax expense13 11 6 6 4 2 18 9 NM
Net income$42 $33 $19 $20 $12 $9 27 $30 NM
Average Balance Sheet (billions)
Interest earning assets$2.34 $2.63 $3.27 $2.57 $2.47 $(0.29)(11)$(0.13)(5)
Total assets3.00 3.26 3.76 2.99 2.88 (0.26)(8)0.12 4 
Key Metrics
Fixed income product average daily revenue (thousands)$1,545 $1,592 $1,264 $1,061 $994 (47)(3)551 55 
Net interest margin6
2.00 %2.07 %1.36 %1.15 %0.88 %(7)(3)112 NM
Efficiency ratio 55.05 65.49 76.02 70.23 81.31 (1,044)(16)(2,626)(32)
Return on average assets5.51 4.08 2.08 2.65 1.63 143 35 388 NM
Return on allocated equity7
82.03 65.97 37.19 39.91 23.60 1,606 24 5,843 NM

FHN CORPORATE
Quarterly, Unaudited
 3Q20 change vs.
 3Q202Q201Q204Q193Q192Q203Q19
$%$%
Income Statement (millions)
Net interest income/(expense)$(69)$(63)$(13)$(13)$(13)$(6)(10)$(56)NM
Noninterest income1
540 13 (4)11 7 527 NM533 NM
Total revenues470 (50)(17)(1)(6)520 NM476 NM
Noninterest expense143 42 14 58 42 101 NM101 NM
Income/(loss) before income taxes328 (93)(31)(60)(48)421 NM376 NM
Income tax expense (benefit)(47)(25)(6)(15)(12)(22)(88)(35)NM
Net income/(loss)$374 $(68)$(25)$(44)$(37)$442 NM$411 NM
Average Balance Sheet (billions)    
Interest bearing assets12.47 6.12 5.01 4.98 4.92 $6.35 NM$7.55 NM
Total assets13.60 8.16 6.78 6.53 6.43 5.44 67 7.17 NM
Numbers may not foot due to rounding. Certain previously reported amounts have been reclassified to agree with current presentation. See footnote disclosures on page 22.
21
First Horizon National Corporation
FHN NON-STRATEGIC
Quarterly, Unaudited
     3Q20 change vs.
 3Q202Q201Q204Q193Q192Q203Q19
$/bp%$/bp%
Income Statement (millions)      
Net interest income$6 $6 $5 $6 $6 $— *$— *
Noninterest income— 1 1 1 1 (1)NM(1)NM
Total revenue6 6 6 7 7 — *(1)(14)
Noninterest expense3 3 4 5 4 — *(1)(25)
Pre-provision net revenue2
3 3 2 2 2 — *1 50 
Provision for credit losses3
— 2 — (5)(5)(2)NM5 NM
Income before income tax expense3 1 2 8 8 2 NM(5)(63)
Income tax expense1 — 1 2 2 1 NM(1)(50)
Net income$2 $1 $2 $6 $6 $1 NM$(4)(67)
Average Balance Sheet (billions)
Total assets0.71 0.77 0.83 0.91 0.99 $(0.06)(8)$(0.28)(28)
Key Statistics
Net interest margin6
3.22 %2.83 %2.41 %2.67 %2.47 %39 14 75 30 
Efficiency ratio50.95 53.62 65.26 66.85 65.85 (267)(5)(15)(23)
Return on average assets1.39 0.50 0.89 2.51 2.35 89 NM(1)(41)
Return on allocated equity7
28.75 9.38 15.00 37.00 32.08 1,937 NM(3)(10)
Numbers may not foot due to rounding
Certain previously reported amounts have been reclassified to agree with current presentation.

FOOTNOTES
1 3Q20 includes a $532 million purchase accounting gain from FHN's merger with IBERIABANK.
2 Pre-provision net revenue is a non-GAAP measure and is reconciled to income before income taxes (GAAP) in the table.
3 Beginning in 3Q20 FHN began recording credit expense on unfunded commitments as a component of provision for credit losses. Prior period amounts have been reclassified from other noninterest expense.
4 Represents a non-GAAP measure and is reconciled to the nearest GAAP measure in the non-GAAP to GAAP reconciliations beginning on page 23.
5 Effective 1/1/2020 FHN adopted ASU 2016-13, "Measurement of Credit Losses on Financial Instruments," (CECL) which resulted in an increase to the Allowance for loan and lease losses of $106 million and a net decrease to retained earnings of $96 million.
6 Net interest margin is computed using total NII adjusted for FTE assuming a statutory federal income tax rate of 21 percent, and, where applicable state taxes.
7 Segment equity is allocated based on an internal allocation methodology.








22
First Horizon National Corporation
FHN NON-GAAP TO GAAP RECONCILIATION
Quarterly, Unaudited
(In millions, except per share data)3Q202Q204Q194Q193Q19
Tangible Common Equity (Non-GAAP)    
(A) Total equity (GAAP)$8,144 $5,208 $5,056 $5,076 $4,996 
Less: Noncontrolling interest (a)295 295 295 295 295 
Less: Preferred stock (a)470 240 96 96 96 
(B) Total common equity$7,378 $4,673 $4,665 $4,685 $4,605 
Less: Intangible assets (GAAP) (b)1,876 1,552 1,558 1,563 1,569 
(C) Tangible common equity (Non-GAAP)$5,502 $3,120 $3,107 $3,122 $3,036 
Tangible Assets (Non-GAAP) 
(D) Total assets (GAAP)$83,030 $48,645 $47,197 $43,311 $43,718 
Less: Intangible assets (GAAP) (b)1,876 1,552 1,558 1,563 1,569 
(E) Tangible assets (Non-GAAP)$81,154 $47,092 $45,640 $41,748 $42,148 
Period-end Shares Outstanding     
(F) Period-end shares outstanding555 312 312 311 311 
Ratios
(A)/(D) Total equity to total assets (GAAP)9.81 %10.71 %10.71 %11.72 %11.43 %
(C)/(E) Tangible common equity to tangible assets (“TCE/TA”) (Non-GAAP)6.78 %6.63 %6.81 %7.48 %7.20 %
(B)/(F) Book value per common share (GAAP)$13.30 $14.96 $14.96 $15.04 $14.80 
(C)/(F) Tangible book value per common share (Non-GAAP)$9.92 $9.99 $9.96 $10.02 $9.76 
(a)     Included in Total equity on the Consolidated Balance Sheet.
(b)     Includes goodwill and other intangible assets, net of amortization.
Numbers may not foot due to rounding.


23
First Horizon National Corporation
FHN NON-GAAP TO GAAP RECONCILIATION
Quarterly, Unaudited
3Q202Q201Q204Q193Q19
(In millions, except per share data)GAAPNotable ItemsNon-GAAPGAAPNotable ItemsNon-GAAPGAAPNotable ItemsNon-GAAPGAAPNotable ItemsNon-GAAPGAAPNotable ItemsNon-GAAP
Interest income$598 $— $598 $347 $— $347 $378 $— $378 $404 $— $404 $407 $— $407 
Interest expense66 — 66 41 — 41 76 — 76 93 — 93 107 — 107 
Net interest income532 — 532 305 — 305 303 — 303 311 — 311 301 — 301 
Noninterest income:
Fixed income111 — 111 112 — 112 96 — 96 81 — 81 78 — 78 
Mortgage banking and title66 — 66 4 — 4 2 — 2 4 — 4 2 — 2 
Brokerage, trust, and insurance30 — 30 22 — 22 23 — 23 22 — 22 22 — 22 
Service charges and fees50 — 50 35 — 35 36 — 36 39 — 39 40 — 40 
Card and digital banking fees17 — 17 12 — 12 12 — 12 14 — 14 13 — 13 
Deferred compensation income4 — 4 8 — 8 (10)— (10)3 — 3 — — — 
Other noninterest income546 (532)14 12 — 12 15 — 15 20 — 20 17 — 17 
Total noninterest income823 (532)291 206 — 206 175 — 175 183 — 183 172 — 172 
Total revenue1,355 (532)823 512 — 512 478 — 478 495 — 495 472 — 472 
Noninterest expense:
Personnel expenses:
Salaries and benefits201 (1)200 111 (5)107 113 (1)112 112 (4)107 111 (3)109 
Incentives and commissions126 (34)91 79 — 79 81 — 81 63 — 63 55 4 59 
Deferred compensation expense3 — 3 9 — 9 (10)— (10)4 — 4 1 — 1 
Total personnel expenses329 (35)294 200 (5)195 183 (1)182 179 (4)174 167 1 168 
Occupancy and equipment77 (4)73 46 — 46 44 — 44 44 — 44 42 — 42 
Outside services78 (32)46 38 (5)33 38 (2)37 54 (18)36 47 (12)35 
Amortization of intangible assets15 (1)14 5 — 5 5 — 5 6 — 6 6 — 6 
Other noninterest expense89 (44)45 31 (4)27 31 (3)28 45 (15)31 46 (21)25 
Total noninterest expense587 (116)471 321 (14)307 302 (6)296 328 (37)291 308 (31)277 
Pre-provision net revenue768 (416)352 191 14 205 175 6 181 166 37 203 164 31 196 
Provision for credit losses227 (147)80 121 — 121 154 — 154 9 — 9 14 — 14 
Income before income taxes541 (269)272 69 14 84 21 6 27 157 37 194 150 31 181 
Provision for income taxes2 61 63 13 3 15 5 1 6 36 7 43 36 7 43 
Net income539 (331)208 57 12 68 16 5 21 121 30 151 114 24 138 
Net income attributable to noncontrolling interest3 — 3 3 — 3 3 — 3 3 — 3 3 — 3 
Net income attributable to controlling interest536 (331)205 54 12 66 14 5 18 118 30 148 111 24 136 
Preferred stock dividends13 — 13 2 — 2 2 — 2 2 — 2 2 — 2 
Net income available to common shareholders$523 $(331)$193 $52 $12 $64 $12 $5 $17 $117 $30 $147 $110 $24 $134 
Common Stock Data
EPS$0.95 $(0.60)$0.35 $0.17 $0.04 $0.21 $0.04 $0.01 $0.05 $0.38 $0.10 $0.47 $0.35 $0.08 $0.43 
Basic shares550 550 312 312 312 312 311 311 312 312 
Diluted EPS$0.95 $(0.60)$0.35 $0.17 $0.04 $0.20 $0.04 $0.01 $0.05 $0.37 $0.10 $0.47 $0.35 $0.08 $0.43 
Diluted shares551 551 313 313 313 313 313 313 314 314 
Amounts adjusted for notable items as detailed on page 9.
Numbers may not foot due to rounding.
24
First Horizon National Corporation
FHN NON-GAAP TO GAAP RECONCILIATION
Quarterly, Unaudited
(In millions, except per share data)3Q202Q201Q204Q193Q19
Adjusted Diluted EPS
Net income available to common ("NIAC") (GAAP)a$523 $52 $12 $117 $110 
Plus Tax effected notable items (Non-GAAP) (a)$(331)$12 $5 $30 $24 
Adjusted NIAC (Non-GAAP)b$192 $64 $17 $147 $134 
Diluted Shares (GAAP)c551 313 313 313 314 
Diluted EPS (GAAP)a/c$0.95 $0.17 $0.04 $0.37 $0.35 
Adjusted diluted EPS (Non-GAAP)b/c$0.35 $0.20 $0.05 $0.47 $0.43 
Adjusted Net Income ("NI") and Adjusted Return on Assets ("ROA")
Net Income ("NI") (GAAP)$539 $57 $16 $121 $114 
Plus Tax effected notable items (Non-GAAP) (a)$(331)$12 $5 $30 $24 
Adjusted NI (Non-GAAP)$208 $68 $21 $151 $138 
NI (annualized) (GAAP)d$2,144 $228 $66 $481 $452 
Adjusted NI (annualized) (Non-GAAP)e$828 $275 $84 $600 $549 
Average assets (GAAP)f$81,683 $47,934 $43,552 $42,886 $41,941 
ROA (GAAP)d/f2.63 %0.48 %0.15 %1.12 %1.08 %
Adjusted ROA (Non-GAAP)e/f1.01 %0.57 %0.19 %1.40 %1.31 %
Return on Average Common Equity ("ROCE")/ Return on Average Tangible Common Equity ("ROTCE")/ Adjusted ROTCE
NIAC (annualized) (GAAP)g$2,082 $210 $49 $463 $434 
Adjusted NIAC (annualized) (Non-GAAP)h$765 $257 $67 $582 $532 
Average Common Equity (GAAP)i$7,309 $4,673 $4,611 $4,649 $4,571 
Intangible Assets (GAAP) (b)$1,794 $1,555 $1,560 $1,566 $1,572 
Average Tangible Common Equity (Non-GAAP)j$5,515 $3,117 $3,051 $3,083 $2,999 
ROCE (GAAP)g/i28.49 %4.50 %1.05 %9.97 %9.50 %
ROTCE (Non-GAAP)g/j37.75 %6.74 %1.59 %15.03 %14.49 %
Adjusted ROTCE (Non-GAAP)h/j13.90 %8.26 %2.19 %18.88 %17.73 %
(a) Amounts adjusted for notable items as detailed on page 9.
(b)     Includes goodwill and other intangible assets, net of amortization.
Numbers may not foot due to rounding.

25
First Horizon National Corporation
FHN NON-GAAP TO GAAP RECONCILIATION
Quarterly, Unaudited
(Millions, except per share data)3Q202Q201Q204Q193Q19
Adjusted Noninterest Income as a % of Total Revenue
Noninterest income (GAAP)k$823 $206 $175 $183 $172 
Plus notable items (GAAP) (a)$(532)$— $— $— $— 
Adjusted noninterest income (Non-GAAP)l$291 $206 $175 $183 $172 
Revenue (GAAP)m$1,355 $512 $478 $495 $472 
Plus notable items (GAAP) (a)$(532)$— $— $— $— 
Adjusted revenue (Non-GAAP)n$823 $512 $478 $495 $472 
Noninterest income as a % of total revenue (GAAP)k/m60.72 %40.32 %36.59 %37.05 %36.35 %
Adjusted noninterest income as a % of total revenue (Non-GAAP)l/n35.32 %40.32 %36.59 %37.05 %36.35 %
Adjusted Efficiency Ratio
Noninterest expense (GAAP)o$587 $321 $302 $328 $308 
Plus notable items (GAAP) (a)$(116)$(14)$(6)$(37)$(31)
Adjusted noninterest expense (Non-GAAP)p$471 $307 $296 $291 $277 
Revenue excluding securities gains/losses (GAAP)q$1,357 $512 $478 $495 $472 
Plus notable items (GAAP) (a)$(532)$— $— $— $— 
Adjusted revenue excluding securities gains/losses (Non-GAAP)r$825 $512 $478 $495 $472 
Efficiency ratio (GAAP)o/q43.31 %62.74 %63.26 %66.35 %65.26 %
Adjusted efficiency ratio (Non-GAAP)p/r57.26 %59.95 %62.05 %58.88 %58.61 %
(a) Amounts adjusted for notable items as detailed on page 9.
(b)     Includes goodwill and other intangible assets, net of amortization.
Numbers may not foot due to rounding.
26
First Horizon National Corporation

FHN GLOSSARY OF TERMS

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.
 
Current Expected Credit Loss (“CECL”): New accounting standard that focuses on estimation of expected losses over the life of the loans which is measured by the difference between amortized cost and the net amount expected to be collected.

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.
 
Non-Purchased Credit Deteriorated (“Non-PCD”) Financial Assets: Acquired individual financial assets (or acquired groups of financial assets with similar risk characteristics) that, as of the date of acquisition, do not have a more-than-insignificant deterioration in credit quality since origination, as determined by an acquirer’s assessment.

Purchased Credit Deteriorated (“PCD”) Financial Assets: Acquired individual financial assets (or acquired groups of financial assets with similar risk characteristics) that, as of the date of acquisition, have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by an acquirer’s assessment.

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.


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.
 
Noninterest Income as a Percentage of Total Revenue: Ratio is noninterest income to total revenue.
 
Efficiency Ratio: Ratio is noninterest expense to total revenue.
 
Leverage Ratio: Ratio is tier 1 capital to average assets for leverage.

Asset Quality - Consolidated Key Ratios

Nonperforming loans and leases ("NPL") %: Ratio is nonaccruing loans and leases in the loan portfolio to total period-end loans and leases.
 
Net charge-offs %: Ratio is annualized net charge-offs to total average loans and leases.
 
Allowance / loans and leases: Ratio is allowance for loan and lease losses to total period-end loans and leases.
 
Allowance / Nonperforming loans and leases: Ratio is allowance for loan and lease losses to nonperforming loans and leases in the loan portfolio.
 
Allowance / charge-offs: Ratio is allowance for loan and lease losses to annualized net charge-offs.

27

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