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

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8-K - FORM 8-K - FIRST HORIZON CORP	g27695e8vk.htm

Exhibit 99.1

SECOND QUARTER 2011
FINANCIAL SUPPLEMENT

If you need further information, please contact:
Aarti Bowman, Investor Relations
901-523-4017
aagoorha@firsthorizon.com


TABLE OF CONTENTS


		Page


First Horizon National Corporation Segment Structure		3

Performance Highlights		4

Charges for Restructuring, Repositioning, & Efficiency Initiatives		6

Consolidated Results
Income Statement
Summary Results		7
Income Statement		8
Other Income and Other Expense		9
Balance Sheet
Period End Balance Sheet		10
Average Balance Sheet		11
Average Balance Sheet: Yields and Rates		12
Mortgage Servicing Rights		13

Business Segment Detail
Segment Highlights		14
Regional Banking		15
Capital Markets		16
Corporate		17
Non-Strategic		18
Non-Strategic: Servicing		19

Capital Highlights		20

Asset Quality
Asset Quality: Consolidated		21
Rollforwards of Nonperforming Loans and ORE Inventory		23
Asset Quality: Regional Banking and Corporate		24
Asset Quality: Non-Strategic		25
Asset Quality: Portfolio Metrics		26

Glossary of Terms		27

Non-GAAP to GAAP Reconciliation		28

Other Information

This financial supplement contains forward-looking statements involving significant risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward-looking information. Those factors include general economic and financial market conditions, including expectations of and actual timing and amount of interest rate movements including the slope of the yield curve, competition, customer and investor responses to these conditions, ability to execute business plans, geopolitical developments, recent and future legislative and regulatory developments, natural disasters, and items mentioned in this financial supplement and in First Horizon National Corporation’s (FHN) most recent press release, as well as critical accounting estimates and other factors described in FHN’s recent filings with the SEC. FHN disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements included herein or therein to reflect future events or developments.

Use of Non-GAAP Measures

Certain ratios are included in this financial supplement that are non-GAAP, meaning they are not presented in accordance with generally accepted accounting principles (GAAP) in the U.S. FHN’s management believes such ratios are relevant to understanding the capital position and results of the Company. The non-GAAP ratios presented in this Financial Supplement are tangible common equity to tangible assets, tangible book value per common share, tier 1 common to risk weighted assets, adjusted tangible common equity to risk weighted assets, and net interest margin adjusted for FTE. These ratios are reported to FHN’s management and Board of Directors through various internal reports. Additionally, disclosure of non-GAAP capital ratios provides a meaningful base for comparability to other financial institutions as the capital ratios have become an important measure of the capital strength of banks as demonstrated by the inclusion in the stress tests administered by the United States Treasury Department under the Capital Assistance Program. Non-GAAP measures are not formally defined by GAAP or codified in the federal banking regulations, and other entities may use calculation methods that differ from those used by FHN. Tier 1 capital is a regulatory term and is generally defined as the sum of core capital (including common equity and instruments that can not be redeemed at the option of the holder) adjusted for certain items under risk based capital regulations. Also a regulatory term, risk weighted assets includes total assets adjusted for credit risk and is used to determine capital ratios. Refer to the tabular reconciliation of non-GAAP to GAAP measures and presentation of the most comparable GAAP items on page 28 of this financial supplement.


FIRST HORIZON NATIONAL CORPORATION SEGMENT STRUCTURE

Regional Banking

-Traditional lending and deposit taking, investments, financial planning, trust services, asset management, cash management,
and health savings accounts

-Correspondent banking which provides credit, depository, and other banking related services to other financial institutions

-First lien mortgage originations through regional banking channels

Capital Markets

-Fixed income sales, trading, and strategies for institutional clients in U.S. and abroad

-Other capital markets products such as portfolio advisory, derivatives, and loan trading

Corporate

-Executive management, enterprise-wide risk management, corporate finance, corporate communications, low income housing activities, legal functions and funding for the corporation including any impact from balance sheet positioning

-Various charges related to restructuring, repositioning, and efficiency initiatives

Non-Strategic

-Wind-down businesses that include:

-National commercial and consumer lending loan portfolios

-Trust preferred loan portfolio

-Legacy mortgage servicing

-Exited businesses (such as First Horizon Insurance, Inc. (“FHI”) and Highland Capital Management Corporation (“Highland Capital”) and associated restructuring, repositioning, and efficiency charges


PERFORMANCE HIGHLIGHTS

Summary of Second Quarter 2011 Significant Items

(Millions)


Segment	Item	Income Statement	Amount	Comments

Corporate	Restructuring, Repositioning, and Efficiency Initiatives	Noninterest expense: Other	$9.0 million	Pre-tax charge associated with technology-related services contract termination.

Corporate	Restructuring, Repositioning, and Efficiency Initiatives	Employee compensation, incentives, and benefits	$7.5 million	Pre-tax severance-related costs primarily associated with efficiency initiatives within corporate and bank service functions.

Non-Strategic	Divestitures	Discontinued operations, net of tax	$4.2 million	Approximate after-tax gain on sale of FHI and Highland Capital.

(Second Quarter 2011 vs. First Quarter 2011)

Regional Banking

- Net interest margin was relatively flat at 5.24%, net interest income (“NII”) increased slightly to $137.1 million in second quarter

- Slight increase in NII primarily driven by day variance compared to first quarter

- Provision credit was $13.7 million in second quarter compared to $12.4 million in the first quarter

- Decline in provision primarily driven by improved performance of the Income CRE and C&I loan portfolios

- Period-end loans increased $345.8 million primarily driven by corporate lending and loans to mortgage companies

- Noninterest income increased slightly to $68.9 million from $67.4 million in prior quarter

- Deposit fee income increased slightly due to seasonality of NSF fee structure

- Mortgage banking income declined due to soft demand

- Noninterest expense declined $4.2 million to $146.9 million in second quarter

- Decline driven by lower personnel costs, provision for unfunded commitments, and foreclosure-related losses

Capital Markets

- Fixed income revenues decreased to $71.2 million in second quarter from $83.2 million in first quarter

- Fixed income average daily revenue (ADR) was $1.1 million in second quarter, down from $1.3 million in prior quarter

- ADR within range of normalized levels in second quarter

- Noninterest expense decreased to $66.7 million in second quarter from $73.6 million in the prior quarter

- Variable compensation costs decreased due to lower production levels

Corporate

- Noninterest income (including securities gains) decreased to $9.0 million from $12.9 million in prior quarter

- Second quarter includes $3.4 million of interest related to a tax refund; prior quarter included $5.8 million gain on redemption of debt (TRUPs - 8.07%)

- Noninterest expense increased to $36.3 million in second quarter from $20.7 million in prior quarter

- Corporate restructuring charges were $16.6 million in second quarter compared to $3.1 million in prior quarter

- Second quarter includes $9.0 million charge to terminate a technology-related services contract

- Severance and other employee-related restructuring costs increased $5.3 million to $7.5 million in second quarter

- Prior quarter included $3.3 million reversal of the Visa contingent liability


PERFORMANCE HIGHLIGHTS (continued)

(Second Quarter 2011 vs. First Quarter 2011)

Non-Strategic

- Net interest income decreased $2.2 million to $29.8 million in second quarter due to contracting loan portfolios

- Provision expense increased to $14.7 million from $13.4 million

- Noninterest income increased to $33.0 million in second quarter from $27.2 million in prior quarter due to a rise in mortgage banking income

- Positive net hedging results increased to $15.4 million from $12.5 million in the prior quarter

- Noninterest expense decreased to $59.3 million in second quarter from $69.8 million in prior quarter

- Provisioning for repurchase and foreclosure losses was $24.6 million in second quarter compared to $37.2 million in prior quarter

- New requests/PMI cancellation notices were $182.2 million in second quarter, a decline of $38.7 million from prior quarter

- Ending pipeline declined to $450.8 million from $529.3 million in prior quarter

- Cumulative rescission rates averaging between 45% and 55% with average loss severities ranging between 50% and 60%

- Discontinued operations, net of tax includes operating results from FHI

- Closing of FHI and Highland Capital divestitures resulted in after-tax gain of approximately $4.2 million in second quarter

- In first quarter, the agreement to sell FHI triggered a $10.1 million goodwill impairment, offset by $11.1 million favorable tax benefits

Asset Quality

- Allowance as a percentage of loans ratio decreased to 326 basis points from 369 basis points in prior quarter

- Reflects $65.0 million net allowance decrease in second quarter

- Reserve decreased for all loan portfolios

- Provision expense was flat at $1.0 million in second quarter

- Annualized net charge-offs were 167 basis points of average loans, an improvement from 193 basis points in prior quarter

- Net charge-offs were $66.0 million in second quarter compared to $76.7 million in prior quarter

- Improvement in linked-quarter net charge-offs primarily driven by commercial portfolio

- NPAs decreased 9 percent from prior quarter; NPA ratio declined to 409 basis points from 455 basis points

- Commercial NPL’s declined 12 percent; Consumer NPL’s increased primarily due to loan modification activity

- Foreclosed assets declined 16 percent as outflows outpaced inflows in second quarter

- Troubled debt restructurings (“TDRs”) were $376.3 million at the end of second quarter compared with $347.7 million in prior quarter

- Commercial Portfolio:

- Reserve decrease for the C&I portfolio driven by improved borrower financial conditions

- Aggregate improved risk profile primarily due to property stabilization of Income CRE portfolio resulted in $19.3 million reserve decrease

- Consumer Portfolio:

- Performance of the home equity portfolio improved as 30+ delinquency rates declined 20 basis points from prior quarter

- Permanent mortgage portfolio’s performance stabilized; 30+ delinquencies down 147 basis points

Taxes (Operating Results)

- Approximately $7.7 million positive quarterly effect from permanent tax credits

- Tax expense affected by $2.1 million favorable tax audit resolution

Capital and Liquidity

- Paid $0.01 per share dividend July 1, 2011

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

- 9.02% for tangible common equity to tangible assets

- 14.53% for Tier 1

- 18.35% for Total Capital

- 12.01% for Tier 1 Common


CHARGES FOR RESTRUCTURING, REPOSITIONING, & EFFICIENCY INITIATIVES Quarterly, Unaudited


(Thousands)	2Q11			1Q11			4Q10			3Q10			2Q10


By Income Statement Impact
Noninterest income
Mortgage banking	$	-		$	-		$	-		$	-		$	(1,532	)
Noninterest expense
Employee compensation, incentives, and benefits		7,511			2,253			2,225			778			(575	)
Occupancy		59			795			17			39			856
Legal and professional fees		-			-			1			-			14
All other expense (a)		9,026			13			2,801			326			(1,493	)

Total loss before income taxes		(16,596	)		(3,061	)		(5,044	)		(1,143	)		(334	)
Income/(loss) from discontinued operations (b)		441			(10,514	)		(335	)		-			766

Net charges resulting from restructuring, repositioning, and efficiency initiatives	$	(16,155	)	$	(13,575	)	$	(5,379	)	$	(1,143	)	$	432


(a)		Includes $9.0 million charge associated with termination of technology-related services contract.

(b)		Includes amounts related to First Horizon Insurance and Highland Capital.


CONSOLIDATED SUMMARY RESULTS Quarterly, Unaudited



																2Q11 Change vs.
(Dollars in thousands, except per share data)	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10

Income Statement Highlights
Net interest income	$	172,860		$	172,755		$	182,236		$	186,143		$	182,064			*			(5	)%
Noninterest income		188,771			196,744			190,534			246,762			243,862			(4	)%		(23	)%
Securities gains/(losses), net		1			798			15,681			(2,928	)		75		NM			NM

Total revenue		361,632			370,297			388,451			429,977			426,001			(2	)%		(15	)%

Noninterest expense		309,126			315,146			329,729			343,034			337,311			(2	)%		(8	)%
Provision for loan losses		1,000			1,000			45,000			50,000			70,000			*			(99	)%

Income before income taxes		51,506			54,151			13,722			36,943			18,690			(5	)%	NM
Provision/(benefit) for income taxes		9,888			12,108			(6,681	)		3,138			(1,659	)		(18	)%	NM

Income from continuing operations		41,618			42,043			20,403			33,805			20,349			(1	)%	NM
Income/(loss) from discontinued operations, net of tax		3,788			960			(3,095	)		(95	)		129		NM			NM

Net income		45,406			43,003			17,308			33,710			20,478			6	%	NM
Net income attributable to noncontrolling interest		2,844			2,844			2,840			2,875			2,844			*			*

Net income attributable to controlling interest		42,562			40,159			14,468			30,835			17,634			6	%	NM
Preferred stock dividends		-			-			63,154			14,960			14,938		NM			NM

Net income/(loss) available to common shareholders	$	42,562		$	40,159		$	(48,686	)	$	15,875		$	2,696			6	%	NM

Common Stock Data
Diluted EPS from continuing operations	$	0.15		$	0.15		$	(0.19	)	$	0.07		$	0.01			*		NM
Diluted EPS		0.16			0.15			(0.20	)		0.07			0.01			7	%	NM
Diluted shares		262,756			265,556			239,095			238,867			240,968			(1	)%		9	%
Period-end shares outstanding		263,699			263,335			263,366			237,061			236,840			*			11	%
Cash dividends declared per share	$	0.01		$	0.01			N/A			N/A			N/A
Stock dividend rate declared per share		N/A			N/A			1.8122	%		1.6567	%		1.2896	%

Balance Sheet Highlights (Period-End)
Total loans, net of unearned income (Restricted - $.7 billion) (a)	$	16,061,646		$	15,972,372		$	16,782,572		$	17,059,489		$	17,154,050			1	%		(6	)%
Total deposits (Restricted - $.9 million) (a)		15,896,027			15,350,967			15,208,231			14,975,920			15,201,816			4	%		5	%
Total assets (Restricted - $.7 billion) (a)		25,039,936			24,438,344			24,698,952			25,384,181			26,254,226			2	%		(5	)%
Total liabilities (Restricted - $.7 billion) (a)		22,335,984			21,798,287			22,020,947			22,077,293			22,966,993			2	%		(3	)%
Total equity		2,703,952			2,640,057			2,678,005			3,306,888			3,287,233			2	%		(18	)%

Asset Quality Highlights
Allowance for loan losses (Restricted - $33.0 million) (a)	$	524,091		$	589,128		$	664,799		$	719,899		$	781,269			(11	)%		(33	)%
Allowance / period-end loans		3.26	%		3.69	%		3.96	%		4.22	%		4.55	%
Net charge-offs	$	66,037		$	76,671		$	100,100		$	111,370		$	132,791			(14	)%		(50	)%
Net charge-offs (annualized) / average loans		1.67	%		1.93	%		2.36	%		2.60	%		3.11	%
Non-performing assets (NPA)	$	747,860		$	818,969		$	836,502		$	919,242		$	899,802			(9	)%		(17	)%
NPA % (b)		4.09	%		4.55	%		4.48	%		5.00	%		4.92	%

Key Ratios & Other
Return on average assets (annualized) (c)		0.74	%		0.71	%		0.27	%		0.52	%		0.32	%
Return on average common equity (annualized) (d)		7.16	%		6.82	%		(8.59	)%		2.86	%		0.49	%
Net interest margin (e) (f)		3.20	%		3.22	%		3.18	%		3.23	%		3.19	%
Fee income to total revenue (g)		52	%		53	%		51	%		57	%		57	%
Efficiency ratio (h)		85.48	%		85.29	%		88.45	%		79.24	%		79.19	%
Book value per common share	$	9.13		$	8.90		$	9.05		$	9.28		$	9.23
Tangible book value per common share (f)	$	8.51		$	8.21		$	8.31		$	8.45		$	8.39
Adjusted tangible common equity to risk weighted assets (f)		11.14	%		10.84	%		10.66	%		9.55	%		9.21	%
Full time equivalent employees		4,950			5,159			5,435			5,506			5,531			(4	)%		(11	)%


NM - Not meaningful

* Amount is less than one percent.

(a)	Restricted balances parenthetically presented are as of June 30, 2011.

(b)	NPAs related to the loan portfolio over period-end loans plus foreclosed real estate and other assets.

(c)	Calculated using net income.

(d)	Calculated using net income available to common shareholders.

(e)	Net interest margin is computed using total net interest income adjusted for FTE.

(f)	Refer to the Non-GAAP to GAAP Reconciliation on page 28 of this financial supplement.

(g)	Ratio excludes securities gains/(losses).

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


CONSOLIDATED INCOME STATEMENT Quarterly, Unaudited


														2Q11 Change vs.
(Thousands)	2Q11		1Q11		4Q10			3Q10			2Q10			1Q11			2Q10


Interest income	$	206,757	$	207,605	$	217,260		$	223,165		$	220,365				*		(6	)%
Less: interest expense		33,897		34,850		35,024			37,022			38,301			(3	)%		(11	)%

Net interest income		172,860		172,755		182,236			186,143			182,064				*		(5	)%
Provision for loan losses		1,000		1,000		45,000			50,000			70,000				*		(99	)%

Net interest income after provision for loan losses		171,860		171,755		137,236			136,143			112,064				*		53	%

Noninterest income:
Capital markets		77,921		90,057		94,573			114,014			100,876			(13	)%		(23	)%
Mortgage banking		32,101		27,726		16,057			53,122			63,301			16	%		(49	)%
Deposit transactions and cash management		35,060		32,637		35,142			34,911			39,018			7	%		(10	)%
Trust services and investment management		6,684		6,360		6,330			6,171			6,850			5	%		(2	)%
Brokerage management fees and commissions		6,139		6,889		5,777			6,427			6,006			(11	)%		2	%
Insurance commissions		835		756		662			780			1,358			10	%		(39	)%
Securities gains/(losses), net		1		798		15,681			(2,928	)		75				NM			NM
Other		30,031		32,319		31,993			31,337			26,453			(7	)%		14	%

Total noninterest income		188,772		197,542		206,215			243,834			243,937			(4	)%		(23	)%

Adjusted gross income after provision for loan losses		360,632		369,297		343,451			379,977			356,001			(2	)%		1	%

Noninterest expense:
Employee compensation, incentives, and benefits (a)		151,880		157,179		165,053			171,437			161,381			(3	)%		(6	)%
Repurchase and foreclosure provision		24,563		37,203		44,223			48,712			56,188			(34	)%		(56	)%
Operations services		13,973		13,928		14,875			14,941			15,310				*		(9	)%
Occupancy (a)		13,110		14,910		13,787			14,267			15,367			(12	)%		(15	)%
Legal and professional fees		20,624		18,558		16,317			14,247			18,083			11	%		14	%
FDIC premium expense		8,839		8,055		9,326			10,123			9,196			10	%		(4	)%
Computer software		8,380		8,090		8,411			7,585			7,337			4	%		14	%
Contract employment		8,177		6,921		7,934			7,443			7,274			18	%		12	%
Equipment rentals, depreciation, and maintenance		8,503		7,916		7,862			7,162			7,572			7	%		12	%
Foreclosed real estate		5,803		6,789		4,178			5,159			5,137			(15	)%		13	%
Communications and courier		5,084		5,247		5,152			5,050			5,835			(3	)%		(13	)%
Miscellaneous loan costs		859		1,492		1,796			1,913			4,546			(42	)%		(81	)%
Amortization of intangible assets		1,032		1,032		1,078			1,078			1,078				*		(4	)%
Other (a)		38,299		27,826		29,737			33,917			23,007			38	%		66	%

Total noninterest expense		309,126		315,146		329,729			343,034			337,311			(2	)%		(8	)%

Income before income taxes		51,506		54,151		13,722			36,943			18,690			(5	)%			NM
Provision/(benefit) for income taxes		9,888		12,108		(6,681	)		3,138			(1,659	)		(18	)%			NM

Income from continuing operations		41,618		42,043		20,403			33,805			20,349			(1	)%			NM
Income/(loss) from discontinued operations, net of tax (a)		3,788		960		(3,095	)		(95	)		129				NM			NM

Net income		45,406		43,003		17,308			33,710			20,478			6	%			NM
Net income attributable to noncontrolling interest		2,844		2,844		2,840			2,875			2,844				*			*

Net income attributable to controlling interest		42,562		40,159		14,468			30,835			17,634			6	%			NM
Preferred stock dividends		-		-		63,154			14,960			14,938				NM			NM

Net income/(loss) available to common shareholders	$	42,562	$	40,159	$	(48,686	)	$	15,875		$	2,696			6	%			NM


NM	- Not meaningful

* Amount is less than one percent.

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

(a)	2Q11 includes a portion of net charges related to Restructuring, Repositioning, & Efficiency Initiatives.


OTHER INCOME AND OTHER EXPENSE Quarterly, Unaudited


												2Q11 Change vs.
(Thousands)	2Q11		1Q11		4Q10		3Q10		2Q10			1Q11			2Q10


Other Income
Bank owned life insurance	$	4,920	$	4,815	$	7,732	$	5,913	$	5,784			2	%		(15	)%
Bankcard income		5,151		4,720		4,977		4,965		5,271			9	%		(2	)%
ATM interchange fees		3,791		3,535		3,748		3,532		3,232			7	%		17	%
Other service charges		2,821		2,854		2,845		2,832		2,382			(1	)%		18	%
Electronic banking fees		1,536		1,534		1,629		1,870		1,887				*		(19	)%
Letter of credit fees		1,869		1,776		1,508		1,544		1,802			5	%		4	%
Deferred compensation		221		979		2,260		1,121		(771	)			NM			NM
Gains on extinguishment of debt		-		5,761		-		-		-				NM			NM
Other		9,722		6,345		7,294		9,560		6,866			53	%		42	%

Total	$	30,031	$	32,319	$	31,993	$	31,337	$	26,453			(7	)%		14	%


Other Expense
Advertising and public relations	$	3,631	$	3,862	$	5,756	$	6,557	$	5,574			(6	)%		(35	)%
Low income housing expense		4,973		4,697		5,886		5,513		5,364			6	%		(7	)%
Other insurance and taxes		3,511		3,475		1,814		2,992		3,589			1	%		(2	)%
Travel and entertainment		2,178		1,801		2,476		2,507		2,627			21	%		(17	)%
Customer relations		1,155		1,270		1,729		1,545		1,838			(9	)%		(37	)%
Employee training and dues		1,350		1,251		1,126		1,120		965			8	%		40	%
Supplies		801		981		1,223		1,126		1,083			(18	)%		(26	)%
Bank examination costs		1,117		1,118		1,147		1,147		1,142				*		(2	)%
Loan insurance expense		706		781		603		903		682			(10	)%		4	%
Federal services fees		291		464		471		520		712			(37	)%		(59	)%
Other (a)		18,586		8,126		7,506		9,987		(569	)			NM			NM

Total	$	38,299	$	27,826	$	29,737	$	33,917	$	23,007			38	%		66	%


NM - Not meaningful

* Amount is less than one percent.

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

(a)	2Q11 includes a portion of net charges related to Restructuring, Repositioning, & Efficiency Initiatives.


CONSOLIDATED PERIOD-END BALANCE SHEET Quarterly, Unaudited



																2Q11 Change vs.
(Thousands)	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10


Assets
Investment securities	$	3,230,477		$	3,085,478		$	3,031,930		$	2,611,460		$	2,489,819			5	%		30	%
Loans held for sale		397,931			370,487			375,289			414,259			505,237			7	%		(21	)%
Loans, net of unearned income (Restricted - $.7 billion) (a)		16,061,646			15,972,372			16,782,572			17,059,489			17,154,050			1	%		(6	)%
Federal funds sold and securities purchased under agreements to resell		598,000			527,563			424,390			602,407			602,910			13	%		(1	)%
Interest bearing cash (b)		263,441			308,636			517,739			266,469			275,148			(15	)%		(4	)%
Trading securities		1,196,380			924,854			769,750			1,214,595			1,806,789			29	%		(34	)%

Total earning assets		21,747,875			21,189,390			21,901,670			22,168,679			22,833,953			3	%		(5	)%

Cash and due from banks (Restricted - $1.8 million) (a)		313,416			337,002			344,384			331,743			364,857			(7	)%		(14	)%
Capital markets receivables		625,243			595,594			146,091			564,879			828,866			5	%		(25	)%
Mortgage servicing rights, net		186,958			207,748			207,319			191,943			201,746			(10	)%		(7	)%
Goodwill		135,683			152,080			162,180			162,180			162,180			(11	)%		(16	)%
Other intangible assets, net		28,384			31,545			32,881			34,263			35,645			(10	)%		(20	)%
Premises and equipment, net		330,392			320,871			322,319			311,947			307,452			3	%		7	%
Real estate acquired by foreclosure (c)		92,662			110,127			125,401			139,359			122,548			(16	)%		(24	)%
Allowance for loan losses (Restricted - $33.0 million) (a)		(524,091	)		(589,128	)		(664,799	)		(719,899	)		(781,269	)		(11	)%		(33	)%
Other assets (Restricted - $13.9 million) (a)		2,103,414			2,083,115			2,121,506			2,199,087			2,178,248				*		(3	)%

Total assets (Restricted - $.7 billion) (a)	$	25,039,936		$	24,438,344		$	24,698,952		$	25,384,181		$	26,254,226			2	%		(5	)%


Liabilities and Equity
Deposits
Savings	$	6,382,963		$	6,296,533		$	6,036,895		$	5,436,451		$	5,385,698			1	%		19	%
Other interest-bearing deposits		2,784,787			2,679,437			2,842,306			3,088,224			3,237,183			4	%		(14	)%
Time deposits		1,277,905			1,336,666			1,390,995			1,473,622			1,545,475			(4	)%		(17	)%

Total interest-bearing core deposits		10,445,655			10,312,636			10,270,196			9,998,297			10,168,356			1	%		3	%
Noninterest-bearing deposits (Restricted - $.9 million) (a)		4,937,103			4,480,413			4,376,285			4,393,107			4,409,505			10	%		12	%

Total core deposits (d)		15,382,758			14,793,049			14,646,481			14,391,404			14,577,861			4	%		6	%

Certificates of deposit $100,000 and more		513,269			557,918			561,750			584,516			623,955			(8	)%		(18	)%

Total deposits (Restricted - $.9 million) (a)		15,896,027			15,350,967			15,208,231			14,975,920			15,201,816			4	%		5	%

Federal funds purchased and securities sold under agreements to repurchase		2,005,999			2,125,793			2,114,908			2,439,542			2,278,890			(6	)%		(12	)%
Trading liabilities		498,915			384,250			361,920			414,666			481,477			30	%		4	%
Other short-term borrowings and commercial paper		187,902			237,583			180,735			193,361			487,449			(21	)%		(61	)%
Term borrowings (Restricted - $.7 billion) (a)		2,502,517			2,514,754			3,228,070			2,805,731			2,926,675				*		(14	)%
Capital markets payables		464,993			413,334			65,506			379,526			754,079			12	%		(38	)%
Other liabilities		779,631			771,606			861,577			868,547			836,607			1	%		(7	)%

Total liabilities (Restricted - $.7 billion) (a)		22,335,984			21,798,287			22,020,947			22,077,293			22,966,993			2	%		(3	)%

Equity
Common stock		164,812			164,584			164,604			145,526			143,021				*		15	%
Capital surplus		1,638,423			1,636,623			1,630,210			1,344,307			1,296,484				*		26	%
Capital surplus common stock warrant - (CPP)		-			-			83,860			83,860			83,860		NM			NM
Undivided profits		714,060			674,064			631,712			737,014			767,769			6	%		(7	)%
Accumulated other comprehensive loss, net		(108,508	)		(130,379	)		(127,546	)		(109,958	)		(105,922	)		(17	)%		2	%
Preferred stock capital surplus - (CPP)		-			-			-			810,974			806,856		NM			NM
Noncontrolling interest (e)		295,165			295,165			295,165			295,165			295,165				*			*

Total equity		2,703,952			2,640,057			2,678,005			3,306,888			3,287,233			2	%		(18	)%

Total liabilities and equity	$	25,039,936		$	24,438,344		$	24,698,952		$	25,384,181		$	26,254,226			2	%		(5	)%

NM - Not meaningful


* Amount is less than one percent.

(a)		Restricted balances parenthetically presented are as of June 30, 2011.

(b)		Includes excess balances held at Fed.

(c)		2Q11 includes $13.9 million of foreclosed assets related to government insured mortgages.

(d)		2Q11 average core deposits were $14.9 billion.

(e)		Includes preferred stock of subsidiary.


CONSOLIDATED AVERAGE BALANCE SHEET Quarterly, Unaudited



																2Q11 Change vs.
(Thousands)	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10


Assets:
Earning assets:
Loans, net of unearned income:
Commercial, Financial, and Industrial (C&I)	$	6,867,893		$	6,823,350		$	7,229,808		$	7,017,427		$	6,730,496			1	%		2	%
Income CRE		1,362,459			1,422,837			1,472,182			1,570,928			1,629,964			(4	)%		(16	)%
Residential CRE		203,721			249,777			306,292			361,217			471,569			(18	)%		(57	)%
Consumer real estate		5,436,358			5,549,490			5,706,103			5,872,695			6,013,562			(2	)%		(10	)%
Permanent mortgage		1,009,804			1,064,893			980,383			986,444			1,035,986			(5	)%		(3	)%
Credit card and other		299,904			299,861			318,000			338,987			374,916				*		(20	)%
Restricted real estate loans		708,966			741,413			779,793			818,149			853,568			(4	)%		(17	)%

Total loans, net of unearned income (Restricted - $.7 billion) (a) (b)	$	15,889,105		$	16,151,621		$	16,792,561		$	16,965,847		$	17,110,061			(2	)%		(7	)%

Loans held for sale		366,557			353,384			385,047			481,317			493,225			4	%		(26	)%
Investment securities:
U.S. Treasuries		62,970			82,197			72,375			68,570			77,488			(23	)%		(19	)%
U.S. government agencies		2,938,623			2,669,852			2,418,015			2,198,754			2,223,153			10	%		32	%
States and municipalities		23,869			26,015			38,914			41,756			42,076			(8	)%		(43	)%
Other		220,440			224,565			228,866			244,766			265,918			(2	)%		(17	)%

Total investment securities		3,245,902			3,002,629			2,758,170			2,553,846			2,608,635			8	%		24	%

Capital markets securities inventory		1,235,642			1,110,584			1,118,090			1,338,535			1,085,816			11	%		14	%
Mortgage banking trading securities		32,263			34,549			36,040			37,814			50,423			(7	)%		(36	)%
Other earning assets:
Federal funds sold and securities purchased under agreements to resell		653,984			581,861			553,432			572,078			624,892			12	%		5	%
Interest bearing cash (c)		381,586			586,411			1,312,006			1,095,006			982,410			(35	)%		(61	)%

Total other earning assets		1,035,570			1,168,272			1,865,438			1,667,084			1,607,302			(11	)%		(36	)%

Total earning assets		21,805,039			21,821,039			22,955,346			23,044,443			22,955,462				*		(5	)%

Allowance for loan losses (Restricted - $36.4 million) (a)		(567,923	)		(644,107	)		(717,297	)		(778,326	)		(821,652	)		(12	)%		(31	)%
Cash and due from banks (Restricted - $6.9 million) (a)		343,162			351,488			338,619			363,445			367,796			(2	)%		(7	)%
Capital markets receivables		112,289			124,395			197,294			161,239			127,331			(10	)%		(12	)%
Premises and equipment, net		324,584			320,485			320,341			309,713			307,078			1	%		6	%
Other assets (Restricted - $15.3 million) (a)		2,500,864			2,596,870			2,694,155			2,657,126			2,664,563			(4	)%		(6	)%

Total assets (Restricted - $.7 billion) (a)	$	24,518,015		$	24,570,170		$	25,788,458		$	25,757,640		$	25,600,578				*		(4	)%


Liabilities and equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Other interest-bearing deposits	$	2,673,090		$	2,662,421		$	3,010,572		$	3,008,241		$	3,277,859				*		(18	)%
Savings		6,320,779			6,184,409			5,926,061			5,782,596			5,424,462			2	%		17	%
Time deposits		1,315,764			1,360,180			1,434,238			1,505,267			1,591,048			(3	)%		(17	)%

Total interest-bearing core deposits		10,309,633			10,207,010			10,370,871			10,296,104			10,293,369			1	%			*
Certificates of deposit $100,000 and more		547,262			560,805			558,860			617,560			603,952			(2	)%		(9	)%

Federal funds purchased and securities sold under agreements to repurchase		2,130,832			2,259,138			2,618,819			2,523,719			2,521,758			(6	)%		(16	)%
Capital markets trading liabilities		620,726			561,429			514,992			520,046			565,709			11	%		10	%
Other short-term borrowings and commercial paper		340,015			172,601			207,315			199,588			167,966			97	%	NM
Term borrowings (Restricted - $.7 billion) (a)		2,499,794			2,838,034			2,856,014			2,913,979			2,921,627			(12	)%		(14	)%

Total interest-bearing liabilities		16,448,262			16,599,017			17,126,871			17,070,996			17,074,381			(1	)%		(4	)%

Noninterest-bearing deposits (Restricted - $1.0 million) (a)		4,574,342			4,414,758			4,470,436			4,454,907			4,394,187			4	%		4	%
Capital markets payables		79,463			79,389			98,738			124,008			99,782				*		(20	)%
Other liabilities		735,786			795,176			823,170			799,734			736,822			(7	)%			*
Equity		2,680,162			2,681,830			3,269,243			3,307,995			3,295,406				*		(19	)%


Total liabilities and equity (Restricted - $.7 billion) (a)	$	24,518,015		$	24,570,170		$	25,788,458		$	25,757,640		$	25,600,578				*		(4	)%

NM - Not meaningful


* Amount is less than one percent.

(a)		Restricted balances parenthetically presented are quarterly averages as of June 30, 2011.

(b)		Includes loans on nonaccrual status.

(c)		Includes excess balances held at Fed.

CONSOLIDATED AVERAGE BALANCE SHEET: YIELDS & RATES
Quarterly, Unaudited


(Thousands)	2Q11			1Q11			4Q10			3Q10			2Q10


Assets:
Earning assets:
Loans, net of unearned income (a)		4.09	%		4.12	%		4.16	%		4.15	%		4.07	%
Loans held for sale		3.57			4.14			3.62			3.95			4.51
Investment securities:
U.S. Treasuries		0.56			0.59			0.65			0.68			0.48
U.S. government agencies		3.90			3.97			4.09			4.40			4.77
States and municipalities		3.29			3.19			1.58			1.80			1.08
Other		4.34			4.32			3.96			3.94			3.60

Total investment securities		3.86			3.90			3.96			4.21			4.47

Capital markets securities inventory		3.39			3.61			3.59			4.03			3.86
Mortgage banking trading securities		10.17			10.29			10.02			9.90			8.26
Other earning assets:
Federal funds sold and securities purchased under agreements to resell (b)		(0.06	)		0.05			0.09			0.12			0.12
Interest bearing cash		0.19			0.23			0.24			0.24			0.24

Total other earning assets (c)		0.03			0.14			0.20			0.20			0.20

Total earning assets / interest income		3.83	%		3.86	%		3.79	%		3.87	%		3.85	%


Liabilities:
Interest-bearing liabilities:
Interest-bearing deposits:
Other interest-bearing deposits		0.25	%		0.24	%		0.23	%		0.26	%		0.32	%
Savings		0.45			0.48			0.52			0.55			0.60
Time deposits		2.37			2.39			2.42			2.47			2.49

Total interest-bearing core deposits		0.64			0.67			0.70			0.74			0.80
Certificates of deposit $100,000 and more		1.91			1.96			2.05			2.14			2.27

Federal funds purchased and securities sold under agreements to repurchase		0.23			0.24			0.24			0.24			0.24
Capital markets trading liabilities		2.65			2.74			2.70			3.15			3.58
Other short-term borrowings and commercial paper		0.27			0.51			0.71			0.61			0.63
Term borrowings (d)		1.49			1.41			1.18			1.16			1.02

Total interest-bearing liabilities / interest expense		0.83	%		0.85	%		0.81	%		0.86	%		0.90	%

Net interest spread		3.00	%		3.01	%		2.98	%		3.01	%		2.95	%
Effect of interest-free sources used to fund earning assets		0.20			0.21			0.20			0.22			0.24

Net interest margin		3.20	%		3.22	%		3.18	%		3.23	%		3.19	%

Yields are adjusted to a fully taxable equivalent (“FTE”). Refer to the Non-GAAP to GAAP Reconciliation on page 28 for reconciliation of net interest income (GAAP) to net interest income adjusted for impact of FTE - (non-GAAP).


(a)		Includes loans on nonaccrual status.

(b)		2Q11 is driven by negative market rates on reverse repurchase agreements.

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

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


MORTGAGE SERVICING RIGHTS Quarterly, Unaudited



																2Q11 change vs.
(Thousands)	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10


First Liens
Fair value beginning balance	$	204,257		$	203,812		$	188,397		$	197,953		$	261,083
Reductions due to loan payments		(5,522	)		(7,163	)		(10,160	)		(8,752	)		(7,238	)
Reductions due to sale		-			-			-			-			(24,558	)
Reductions due to exercise of cleanup calls		(195	)		-			(1,110	)		-			-
Changes in fair value due to:
Changes in valuation model inputs or assumptions (a)		(15,010	)		7,592			26,685			385			(31,398	)
Other changes in fair value		-			16			-			(1,189	)		64

Fair value ending balance	$	183,530		$	204,257		$	203,812		$	188,397		$	197,953			(10	)%		(7	)%


Second Liens
Fair value beginning balance	$	259		$	262		$	250		$	242		$	242
Reductions due to loan payments		(8	)		(13	)		(17	)		(8	)		(9	)
Changes in fair value due to:
Other changes in fair value		-			10			29			16			9

Fair value ending balance	$	251		$	259		$	262		$	250		$	242			(3	)%		4	%


HELOC
Fair value beginning balance	$	3,232		$	3,245		$	3,296		$	3,551		$	3,634
Reductions due to loan payments		(59	)		(42	)		(76	)		(514	)		(90	)
Changes in fair value due to:
Other changes in fair value		4			29			25			259			7

Fair value ending balance	$	3,177		$	3,232		$	3,245		$	3,296		$	3,551			(2	)%		(11	)%


Total Consolidated
Fair value beginning balance	$	207,748		$	207,319		$	191,943		$	201,746		$	264,959
Reductions due to loan payments		(5,589	)		(7,218	)		(10,253	)		(9,274	)		(7,337	)
Reductions due to sale		-			-			-			-			(24,558	)
Reductions due to exercise of cleanup calls		(195	)		-			(1,110	)		-			-
Changes in fair value due to:
Changes in valuation model inputs or assumptions (a)		(15,010	)		7,592			26,685			385			(31,398	)
Other changes in fair value		4			55			54			(914	)		80

Fair value ending balance	$	186,958		$	207,748		$	207,319		$	191,943		$	201,746			(10	)%		(7	)%


(a)		Principally reflects changes in discount rates and prepayment speed assumptions, mostly due to changes in interest rates.


BUSINESS SEGMENT HIGHLIGHTS Quarterly, Unaudited


																2Q11 Change vs.
(Thousands)	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10


Regional Banking
Net interest income	$	137,080		$	135,502		$	145,280		$	143,042		$	138,179			1	%		(1	)%
Noninterest income		68,881			67,370			71,829			73,106			74,652			2	%		(8	)%

Total revenues		205,961			202,872			217,109			216,148			212,831			2	%		(3	)%
Provision for loan losses		(13,743	)		(12,400	)		2,009			10,304			27,975			11	%	NM
Noninterest expense		146,892			151,120			153,299			155,578			153,964			(3	)%		(5	)%

Income before income taxes		72,812			64,152			61,801			50,266			30,892			13	%	NM
Provision for income taxes		26,680			23,455			22,363			18,274			11,213			14	%	NM

Net income	$	46,132		$	40,697		$	39,438		$	31,992		$	19,679			13	%	NM


Capital Markets
Net interest income	$	5,564		$	5,576		$	5,877		$	8,584		$	4,824				*		15	%
Noninterest income		77,925			90,080			94,555			114,055			100,975			(13	)%		(23	)%

Total revenues		83,489			95,656			100,432			122,639			105,799			(13	)%		(21	)%
Noninterest expense		66,683			73,563			76,812			79,434			78,066			(9	)%		(15	)%

Income before income taxes		16,806			22,093			23,620			43,205			27,733			(24	)%		(39	)%
Provision for income taxes		6,394			8,434			8,829			16,214			10,384			(24	)%		(38	)%

Net income	$	10,412		$	13,659		$	14,791		$	26,991		$	17,349			(24	)%		(40	)%


Corporate
Net interest income/(expense)	$	445		$	(270	)	$	(2,064	)	$	(2,845	)	$	1,113		NM				(60	)%
Noninterest income		9,007			12,871			26,252			7,943			4,925			(30	)%		83	%

Total revenues		9,452			12,601			24,188			5,098			6,038			(25	)%		57	%
Noninterest expense		36,286			20,671			19,014			19,413			11,833			76	%	NM

Income/(loss) before income taxes		(26,834	)		(8,070	)		5,174			(14,315	)		(5,795	)	NM			NM
Benefit for income taxes		(18,843	)		(10,532	)		(8,907	)		(15,444	)		(10,392	)		79	%		81	%

Net income/(loss)	$	(7,991	)	$	2,462		$	14,081		$	1,129		$	4,597		NM			NM


Non-Strategic
Net interest income	$	29,771		$	31,947		$	33,143		$	37,362		$	37,948			(7	)%		(22	)%
Noninterest income		32,959			27,221			13,579			48,730			63,385			21	%		(48	)%

Total revenues		62,730			59,168			46,722			86,092			101,333			6	%		(38	)%
Provision for loan losses		14,743			13,400			42,991			39,696			42,025			10	%		(65	)%
Noninterest expense		59,265			69,792			80,604			88,609			93,448			(15	)%		(37	)%

Loss before income taxes		(11,278	)		(24,024	)		(76,873	)		(42,213	)		(34,140	)		(53	)%		(67	)%
Benefit for income taxes		(4,343	)		(9,249	)		(28,966	)		(15,906	)		(12,864	)		(53	)%		(66	)%

Loss from continuing operations		(6,935	)		(14,775	)		(47,907	)		(26,307	)		(21,276	)		(53	)%		(67	)%
Income/(loss) from discontinued operations, net of tax		3,788			960			(3,095	)		(95	)		129		NM			NM

Net loss	$	(3,147	)	$	(13,815	)	$	(51,002	)	$	(26,402	)	$	(21,147	)		(77	)%		(85	)%


Total Consolidated
Net interest income	$	172,860		$	172,755		$	182,236		$	186,143		$	182,064				*		(5	)%
Noninterest income		188,772			197,542			206,215			243,834			243,937			(4	)%		(23	)%

Total revenues		361,632			370,297			388,451			429,977			426,001			(2	)%		(15	)%
Provision for loan losses		1,000			1,000			45,000			50,000			70,000				*		(99	)%
Noninterest expense		309,126			315,146			329,729			343,034			337,311			(2	)%		(8	)%

Income before income taxes		51,506			54,151			13,722			36,943			18,690			(5	)%	NM
Provision/(benefit) for income taxes		9,888			12,108			(6,681	)		3,138			(1,659	)		(18	)%	NM

Income from continuing operations		41,618			42,043			20,403			33,805			20,349			(1	)%	NM
Income/(loss) from discontinued operations, net of tax		3,788			960			(3,095	)		(95	)		129		NM			NM

Net income	$	45,406		$	43,003		$	17,308		$	33,710		$	20,478			6	%	NM


NM - Not meaningful

* Amount is less than one percent.

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


REGIONAL BANKING Quarterly, Unaudited


																2Q11 Change vs.
(Thousands)	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10


Income Statement
Net interest income	$	137,080		$	135,502		$	145,280		$	143,042		$	138,179			1	%		(1	)%
Provision for loan losses		(13,743	)		(12,400	)		2,009			10,304			27,975			11	%	NM
Noninterest income		68,881			67,370			71,829			73,106			74,652			2	%		(8	)%
Noninterest expense		146,892			151,120			153,299			155,578			153,964			(3	)%		(5	)%

Income before income taxes	$	72,812		$	64,152		$	61,801		$	50,266		$	30,892			13	%	NM


Efficiency ratio (a)		71.32	%		74.48	%		70.61	%		71.98	%		72.34	%



Balance Sheet (millions)
Average loans	$	10,528		$	10,516		$	10,994		$	10,863		$	10,648			*			(1	)%
Average other earning assets		58			71			103			201			205			(18	)%		(72	)%
Total average earning assets		10,586			10,587			11,097			11,064			10,853			*			(2	)%
Average core deposits		12,907			12,619			12,629			12,353			12,530			2	%		3	%
Average other deposits		548			561			560			605			591			(2	)%		(7	)%
Total average deposits		13,455			13,180			13,189			12,958			13,121			2	%		3	%
Total period end deposits		13,837			13,405			13,239			12,911			13,047			3	%		6	%
Total period end assets		11,426			11,072			11,644			11,815			11,620			3	%		(2	)%

Net interest margin (b)		5.24	%		5.23	%		5.23	%		5.16	%		5.12	%
Loan yield		4.02			4.04			4.07			4.12			4.05
Deposit average yield		0.54			0.57			0.60			0.65			0.69



Noninterest Income Detail (thousands)
NSF / Overdraft fees	$	13,339		$	11,772		$	13,734		$	14,120		$	17,825			13	%		(25	)%
Cash management fees		9,536			9,132			10,148			9,509			9,945			4	%		(4	)%
Debit card income		7,292			6,780			6,685			6,781			6,788			8	%		7	%
Other		4,699			4,747			4,361			4,241			4,214			(1	)%		12	%

Total deposit transactions and cash management		34,866			32,431			34,928			34,651			38,772			8	%		(10	)%
Insurance commissions		827			746			652			770			1,348			11	%		(39	)%
Trust services and investment management		6,714			6,354			6,312			6,218			6,841			6	%		(2	)%
Bankcard income		4,759			4,322			4,564			4,537			4,813			10	%		(1	)%
Mortgage banking		947			2,591			5,736			3,997			3,645			(63	)%		(74	)%
Other service charges		3,367			3,532			3,510			3,510			3,171			(5	)%		6	%
Miscellaneous revenue		17,401			17,394			16,127			19,423			16,062			*			8	%

Total noninterest income	$	68,881		$	67,370		$	71,829		$	73,106		$	74,652			2	%		(8	)%


Key Statistics
Financial center locations		178			178			183			182			182			*			(2	)%
Trust assets - total managed assets (millions)	$	3,421		$	4,756		$	4,955		$	4,892		$	4,920			(28	)%		(30	)%
First lien mortgage production (millions)	$	51		$	111		$	262		$	225		$	176			(54	)%		(71	)%


NM - Not meaningful

* Amount is less than one percent.

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

(a) Noninterest expense divided by total revenue.

(b) Net interest margin is computed using total net interest income adjusted for FTE. Refer to the Non-GAAP to GAAP Reconciliation on page 28 of this supplement.


CAPITAL MARKETS Quarterly, Unaudited


																2Q11 Change vs.
(Thousands)	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10


Income Statement
Net interest income	$	5,564		$	5,576		$	5,877		$	8,584		$	4,824				*		15	%
Noninterest income:
Fixed income		71,164			83,194			86,106			106,908			91,849			(14	)%		(23	)%
Other		6,761			6,886			8,449			7,147			9,126			(2	)%		(26	)%

Total noninterest income		77,925			90,080			94,555			114,055			100,975			(13	)%		(23	)%
Noninterest expense		66,683			73,563			76,812			79,434			78,066			(9	)%		(15	)%

Income before income taxes	$	16,806		$	22,093		$	23,620		$	43,205		$	27,733			(24	)%		(39	)%


Efficiency ratio (a)		79.87	%		76.91	%		76.48	%		64.77	%		73.79	%
Fixed income average daily revenue	$	1,130		$	1,342		$	1,389		$	1,670		$	1,458			(16	)%		(22	)%


Balance Sheet (millions)
Average trading inventory	$	1,236		$	1,111		$	1,118		$	1,339		$	1,086			11	%		14	%
Average other earning assets		664			579			541			553			607			15	%		9	%
Average total earning assets		1,900			1,690			1,659			1,892			1,693			12	%		12	%
Total period end assets		2,693			2,256			1,529			2,637			3,414			19	%		(21	)%

Net interest margin (b)		1.18	%		1.32	%		1.44	%		1.84	%		1.15	%


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

(a)		Noninterest expense divided by total revenue.

(b)		Net interest margin is computed using total net interest income adjusted for FTE. Refer to the Non-GAAP to GAAP Reconciliation on page 28 of this supplement.


CORPORATE Quarterly, Unaudited


																2Q11 Change vs.
(Thousands)	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10


Income Statement
Net interest income/(expense)	$	445		$	(270	)	$	(2,064	)	$	(2,845	)	$	1,113		NM				(60	)%
Noninterest income		9,006			12,100			10,718			7,943			4,926			(26	)%		83	%
Securities gains/(losses), net		1			771			15,534			-			(1	)	NM			NM
Noninterest expense		36,286			20,671			19,014			19,413			11,833			76	%	NM

Income/(loss) before income taxes	$	(26,834	)	$	(8,070	)	$	5,174		$	(14,315	)	$	(5,795	)	NM			NM


Average Balance Sheet (millions)
Average loans (a)	$	151		$	159		$	35			-			-			(5	)%	NM
Total earning assets	$	3,747		$	3,712		$	4,051		$	3,572		$	3,502			1	%		7	%
Net interest margin (b)		0.06	%		(.09	)%		(.16	)%		(.27	)%		.12	%


NM - Not meaningful

* Amount is less than one percent.

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

(a)		2Q11 period-balance is $175 million. First lien mortgage loans were recognized in 2Q11 and 4Q10 through the exercise of cleanup calls for certain proprietary first lien securitization trusts.

(b)		Net interest margin is computed using total net interest income adjusted for FTE. Refer to the Non-GAAP to GAAP Reconciliation on page 28 of this supplement.


NON-STRATEGIC Quarterly, Unaudited



																2Q11 Change vs.
(Thousands)	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10


Income Statement
Net interest income	$	29,771		$	31,947		$	33,143		$	37,362		$	37,948			(7	)%		(22	)%
Noninterest income		32,959			27,195			13,432			51,657			63,310			21	%		(48	)%
Securities gains/(losses), net		-			26			147			(2,927	)		75		NM			NM
Noninterest expense:
Repurchase and foreclosure provision		24,563			37,203			44,223			48,714			56,186			(34	)%		(56	)%
Other expenses		34,702			32,589			36,381			39,895			37,262			6	%		(7	)%

Total noninterest expense		59,265			69,792			80,604			88,609			93,448			(15	)%		(37	)%
Provision for loan losses		14,743			13,400			42,991			39,696			42,025			10	%		(65	)%

Loss before income taxes	$	(11,278	)	$	(24,024	)	$	(76,873	)	$	(42,213	)	$	(34,140	)		(53	)%		(67	)%


Average Balance Sheet (millions)
Loans	$	5,206		$	5,474		$	5,760		$	6,101		$	6,461			(5	)%		(19	)%
Loans held for sale		303			290			299			304			312			4	%		(3	)%
Trading securities		32			35			36			38			50			(9	)%		(36	)%
Mortgage servicing rights		194			208			192			195			242			(7	)%		(20	)%
Other assets		356			348			339			321			280			2	%		27	%
Total assets		6,091			6,355			6,626			6,959			7,345			(4	)%		(17	)%
Escrow balances		313			351			520			564			565			(11	)%		(45	)%
Net interest margin (a)		2.14	%		2.20	%		2.15	%		2.28	%		2.20	%
Efficiency ratio (b)		94.48	%		118.01	%		173.06	%		99.54	%		92.29	%


Mortgage warehouse (millions)
Ending warehouse balance (loans held for sale)	$	307		$	293		$	290		$	303		$	306			5	%			*


NM - Not meaningful

* Amount is less than one percent.

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

(a)		Net interest margin is computed using total net interest income adjusted for FTE. Refer to the Non-GAAP to GAAP Reconciliation on page 28 of this supplement.

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


NON-STRATEGIC: MORTGAGE SERVICING Quarterly, Unaudited


																2Q11 Change vs.
(Thousands)	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10


Servicing Income
Service fees	$	19,248		$	20,827		$	17,119		$	21,351		$	25,977			(8	)%		(26	)%
Change in MSR value - runoff		(5,526	)		(7,164	)		(10,160	)		(8,752	)		(7,238	)		(23	)%		(24	)%
Hedging results		15,416			12,472			7,026			31,824			44,099			24	%		(65	)%

Total servicing income	$	29,138		$	26,135		$	13,985		$	44,423		$	62,838			11	%		(54	)%


Key Servicing Metrics (millions) (a)
Beginning servicing portfolio	$	26,452		$	27,787		$	29,787		$	31,973		$	39,045
Additions to portfolio, net of REO transfers		(394	)		(301	)		(332	)		(409	)		(440	)
Prepayments		(638	)		(836	)		(1,448	)		(1,231	)		(978	)
Amortization		(197	)		(198	)		(220	)		(230	)		(243	)
Bulk sale		-			-			-			(316	)		(5,411	)
Ending servicing portfolio (b)	$	25,223		$	26,452		$	27,787		$	29,787		$	31,973			(5	)%		(21	)%

Average servicing portfolio (b)	$	25,666		$	26,862		$	28,418		$	30,523		$	34,252			(4	)%		(25	)%
Average number of loans serviced (b)		146,520			152,083			158,743			170,931			193,795			(4	)%		(24	)%


Portfolio Product Mix (Average) (a)
GNMA		3	%		3	%		3	%		3	%		2	%
FNMA/FHLMC		36	%		36	%		36	%		37	%		40	%
Private		57	%		57	%		57	%		56	%		54	%

Sub-Total		96	%		96	%		96	%		96	%		96	%
Warehouse		4	%		4	%		4	%		4	%		4	%

Total		100	%		100	%		100	%		100	%		100	%


Other Portfolio Statistics
Weighted average base servicing fee - legacy mortgage banking (c)		34			34			34			34			34
Weighted average base servicing fee - legacy equity lending (HELOCs and ILs)		50			50			50			50			50

Servicing cost per loan (annualized) (d)	$	135.34		$	121.47		$	124.84		$	97.68		$	91.06

Average mortgage trading securities	$	32		$	35		$	36		$	38		$	50
Average MSR (millions)		194			208			192			195			242
Servicing book value (bps) (e) (f)		88			80			72			69			76

90+ Delinquency rate, excluding foreclosures (g)		11.35	%		11.57	%		11.46	%		10.93	%		10.49	%

Change in MSR asset / average servicing asset		22	%		5	%		(8	)%		43	%		66	%
Run-off rate (annualized)		13	%		15	%		22	%		18	%		13	%

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



(a)		Includes servicing of first liens, second liens, and HELOCs.

(b)		Includes loans serviced from FHN’s legacy mortgage banking business, legacy equity lending, and FHN’s portfolio loans. Excludes UPB of loans transferred that did not qualify for sales treatment.

(c)		Includes weighted average fee of servicing assets and excess interest.

(d)		Calculated based on fees charged by subservicer divided by average number of loans serviced during the quarter.

(e)		Includes average MSR and mortgage trading securities divided by total average servicing portfolio.

(f)		For purposes of this calculation, average MSR excludes servicing transferred that did not qualify for sales treatment due to certain recourse provisions.

(g)		Excludes delinquency of second liens and HELOCs.


CAPITAL HIGHLIGHTS Quarterly, Unaudited


																2Q11 Change vs.
(Dollars in thousands, except per share amounts)	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10


Tier 1 capital (a) (b)	$	2,853,306		$	2,790,335		$	2,812,471		$	3,526,115		$	3,499,759			2	%		(18	)%
Tier 2 capital (a)		748,750			868,792			937,115			940,784			947,841			(14	)%		(21	)%

Total capital (a)	$	3,602,056		$	3,659,127		$	3,749,586		$	4,466,899		$	4,447,600			(2	)%		(19	)%


Risk weighted assets (a)	$	19,632,480		$	19,569,006		$	20,102,775		$	20,332,364		$	20,837,537				*		(6	)%
Tier 1 ratio (a)		14.53	%		14.26	%		13.99	%		17.34	%		16.80	%
Tier 2 ratio (a)		3.82	%		4.44	%		4.66	%		4.63	%		4.54	%

Total capital ratio (a)		18.35	%		18.70	%		18.65	%		21.97	%		21.34	%


Tier 1 common ratio (a) (c)		12.01	%		11.73	%		11.53	%		10.43	%		10.07	%
Leverage ratio (a)		11.67	%		11.39	%		10.96	%		13.76	%		13.74	%
Shareholders’ equity/assets ratio (d)		10.80	%		10.80	%		10.84	%		13.03	%		12.52	%
Adjusted tangible common equity/RWA (a) (c) (e)		11.14	%		10.84	%		10.66	%		9.55	%		9.21	%
Tangible common equity/tangible assets (c) (d)		9.02	%		8.91	%		8.93	%		7.96	%		7.63	%
Tangible book value per common share (c) (d)	$	8.51		$	8.21		$	8.31		$	8.45		$	8.39
Book value per common share (d)	$	9.13		$	8.90		$	9.05		$	9.28		$	9.23

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



(a)		Current quarter is an estimate.

(b)		2Q11, 1Q11, and 4Q10 include $200 million of tier 1 qualifying trust preferred securities; prior quarters included $300 million.

(c)		Refer to the Non-GAAP to GAAP Reconciliation on page 28 of this financial supplement.

(d)		Calculated using period-end balances.

(e)		See Glossary of Terms for definition of ratios.


ASSET QUALITY: CONSOLIDATED Quarterly, Unaudited


																2Q11 Change vs.
(Thousands)	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10


Allowance for Loan Losses Walk-Forward
Beginning reserve	$	589,128		$	664,799		$	719,899		$	781,269		$	844,060			(11	)%		(30	)%
Provision		1,000			1,000			45,000			50,000			70,000				*		(99	)%
Charge-offs		(83,344	)		(87,352	)		(110,797	)		(125,801	)		(145,988	)		(5	)%		(43	)%
Recoveries		17,307			10,681			10,697			14,431			13,197			62	%		31	%

Ending balance (Restricted - $33.0 million) (a)	$	524,091		$	589,128		$	664,799		$	719,899		$	781,269			(11	)%		(33	)%

Reserve for unfunded commitments		12,522			14,371			14,253			13,838			16,077			(13	)%		(22	)%
Total allowance for loan losses plus reserve for unfunded commitments	$	536,613		$	603,499		$	679,052		$	733,737		$	797,346			(11	)%		(33	)%


Allowance for Loan Losses
Regional Banking	$	278,693		$	310,470		$	349,572		$	382,246		$	411,537			(10	)%		(32	)%
Non-Strategic		245,398			278,658			315,227			337,653			369,732			(12	)%		(34	)%
Corporate (b)	NM			NM			NM				N/A			N/A		NM			NM

Total allowance for loan losses	$	524,091		$	589,128		$	664,799		$	719,899		$	781,269			(11	)%		(33	)%


Non-Performing Assets
Regional Banking
Nonperforming loans	$	283,754		$	317,109		$	326,986		$	358,176		$	321,394			(11	)%		(12	)%
Foreclosed real estate		28,121			33,134			30,138			38,771			28,412			(15	)%		(1	)%

Total Regional Banking		311,875		$	350,243		$	357,124		$	396,947		$	349,806			(11	)%		(11	)%

Non-Strategic
Nonperforming loans - including held for sale (c)	$	384,174		$	406,305		$	398,422		$	437,595		$	469,136			(5	)%		(18	)%
Foreclosed real estate		50,671			61,281			80,398			84,700			80,860			(17	)%		(37	)%

Total Non-Strategic		434,845		$	467,586		$	478,820		$	522,295		$	549,996			(7	)%		(21	)%

Corporate
Nonperforming loans	$	1,140		$	1,140		$	558			N/A			N/A				*	NM

Total nonperforming assets	$	747,860		$	818,969		$	836,502		$	919,242		$	899,802			(9	)%		(17	)%


Net Charge-Offs
Regional Banking	$	18,033		$	26,703		$	34,683		$	39,595		$	37,359			(32	)%		(52	)%
Non-Strategic		48,004			49,968			65,417			71,775			95,432			(4	)%		(50	)%

Total net charge-offs	$	66,037		$	76,671		$	100,100		$	111,370		$	132,791			(14	)%		(50	)%


Consolidated Key Ratios (d)
NPL %		3.62	%		3.99	%		3.85	%		4.31	%		4.31	%
NPA %		4.09			4.55			4.48			5.00			4.92
Net charge-offs %		1.67			1.93			2.36			2.60			3.11
Allowance / loans		3.26			3.69			3.96			4.22			4.55
Allowance / NPL		0.90	x		0.92	x		1.03	x		0.98	x		1.06	x
Allowance / NPA		0.79	x		0.81	x		0.88	x		0.84	x		0.92	x
Allowance / charge-offs		1.98	x		1.92	x		1.66	x		1.62	x		1.47	x


Other
Loans past due 90 days or more (e)	$	108,923		$	125,989		$	128,653		$	155,532		$	144,840			(14	)%		(25	)%
Guaranteed portion (e)		39,613			37,858			39,883			38,397			35,809			5	%		11	%
Foreclosed real estate from government insured loans		13,870			15,711			14,865			15,888			13,276			(12	)%		4	%
Period-end loans, net of unearned income (millions)		16,062			15,972			16,783			17,059			17,154			1	%		(6	)%
Remaining unfunded commitments (millions)		7,938			8,285			7,905			8,071			8,148			(4	)%		(3	)%


N/A - Not applicable

NM - Not meaningful

* Amount is less than one percent.

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

(a)		Restricted balances parenthetically presented are as of June 30, 2011. See Glossary of Terms for definition of restricted balances.

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

(c)		2Q11 includes $87.7 million of loans held for sale.

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

(e)		Includes loans held for sale.


ASSET QUALITY: CONSOLIDATED Quarterly, Unaudited


																2Q11 Change vs.
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10


Key Portfolio Details
C&I
Period-end loans ($ millions)	$	7,180		$	6,808		$	7,338		$	7,337		$	7,004			5	%		3	%

30+ Delinq. % (a)		0.52	%		0.46	%		0.36	%		0.68	%		1.02	%
NPL %		2.96			3.13			2.92			3.34			2.93
Charge-offs % (qtr. annualized)		0.35			0.60			0.79			1.33			1.17

Allowance / loans %		2.87	%		3.24	%		3.26	%		3.54	%		3.96	%
Allowance / charge-offs		8.72	x		5.46	x		4.17	x		2.76	x		3.54	x


Income CRE
Period-end loans ($ millions)	$	1,311		$	1,398		$	1,407		$	1,519		$	1,610			(6	)%		(19	)%

30+ Delinq. % (a)		1.11	%		1.12	%		1.20	%		2.04	%		1.31	%
NPL %		8.54			10.07			10.06			10.13			9.78
Charge-offs % (qtr. annualized)		1.03			2.26			3.63			1.94			3.05

Allowance / loans %		6.04	%		7.05	%		8.87	%		9.46	%		9.00	%
Allowance / charge-offs		5.63	x		3.11	x		2.31	x		4.68	x		2.93	x


Residential CRE
Period-end loans ($ millions)	$	183		$	221		$	264		$	324		$	397			(17	)%		(54	)%

30+ Delinq. % (a)		5.14	%		5.08	%		3.19	%		0.93	%		2.49	%
NPL %		38.40			42.19			42.04			46.45			44.52
Charge-offs % (qtr. annualized)		8.19			4.96			6.54			5.03			18.01

Allowance / loans %		11.10	%		11.30	%		11.51	%		11.99	%		13.47	%
Allowance / charge-offs		1.22	x		2.05	x		1.50	x		2.12	x		0.63	x


Consumer Real Estate
Period-end loans ($ millions)	$	5,383		$	5,487		$	5,618		$	5,788		$	5,936			(2	)%		(9	)%

30+ Delinq. % (a)		1.53	%		1.73	%		2.30	%		2.33	%		2.19	%
NPL %		0.64			0.69			0.58			0.46			0.35
Charge-offs % (qtr. annualized)		2.34			2.50			2.94			3.09			2.70

Allowance / loans %		2.47	%		2.60	%		2.67	%		2.64	%		2.74	%
Allowance / charge-offs		1.05	x		1.04	x		0.89	x		0.84	x		1.01	x


Permanent Mortgage
Period-end loans ($ millions) (b)	$	1,015		$	1,038		$	1,087		$	969		$	1,019			(2	)%			*

30+ Delinq. % (a)		4.00	%		5.47	%		5.16	%		5.43	%		4.95	%
NPL %		13.53			12.64			11.27			12.76			12.17
Charge-offs % (qtr. annualized)		3.21			3.34			3.58			5.60			5.86

Allowance / loans %		4.28	%		5.04	%		5.49	%		6.08	%		6.89	%
Allowance / charge-offs		1.34	x		1.49	x		1.68	x		1.06	x		1.16	x


Credit Card and Other (c)
Period-end loans ($ millions)	$	295		$	298		$	312		$	326		$	355			(1	)%		(17	)%

30+ Delinq. % (a)		1.20	%		1.34	%		1.43	%		1.90	%		1.32	%
NPL %		3.21			5.12			6.18			9.31			15.05
Charge-offs % (qtr. annualized)		5.61			4.43			6.00			4.77			11.57

Allowance / loans %		3.08	%		3.36	%		4.13	%		5.49	%		6.42	%
Allowance / charge-offs		0.54	x		0.76	x		0.67	x		1.10	x		0.53	x


Restricted Real Estate Loans
Period-end loans ($ millions) (d)	$	694		$	722		$	757		$	797		$	834			(4	)%		(17	)%

30+ Delinq. % (a)		2.77	%		2.94	%		3.44	%		3.73	%		3.52	%
NPL %		0.80			0.75			0.82			0.67			0.23
Charge-offs % (qtr. annualized)		4.76			5.08			5.71			5.75			6.24

Allowance / loans %		4.76	%		5.52	%		6.26	%		6.01	%		6.01	%
Allowance / charge-offs		0.98	x		1.07	x		1.06	x		1.01	x		0.94	x


* Amount is less than one percent

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

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

(b)		Includes first lien mortgage loans recognized in 2Q11 and 4Q10 through the exercise of cleanup calls for certain proprietary first lien securitization trusts reported in the Corporate segment.

(c)		Select remaining OTC amounts: PE loans: $9.3 million; NPL: 100%; Allowance: $1.9 million; 2Q11 Net Charge-offs: $1.3 million.

(d)		2Q11 includes $649.2 million of consumer real estate loans and $44.9 million of permanent mortgage loans.


ROLLFORWARDS OF NONPERFORMING LOANS AND ORE INVENTORY
Unaudited


(Millions)	2Q11			1Q11			4Q10			3Q10			2Q10

NPL Rollforward (a)
Beginning NPLs	$	462		$	486		$	580		$	593		$	739
+ Additions		31			46			54			98			96
+ Principal Increase		2			4			3			7			19
- Resolutions and payments		(66	)		(47	)		(97	)		(46	)		(161	)
- Net Charge-Offs		(15	)		(22	)		(34	)		(37	)		(60	)
- Transfer to OREO		(5	)		(3	)		(14	)		(35	)		(39	)
- Upgrade to Accrual		(5	)		(2	)		(6	)		-			(1	)

Ending NPLs	$	404		$	462		$	486		$	580		$	593


(a)		Includes Commercial and One-Time Close Portfolios only.


(Millions)	2Q11			1Q11			4Q10			3Q10			2Q10

ORE Inventory Rollforward (b)
Beginning balance	$	94.4		$	110.5		$	123.4		$	109.3		$	113.0
Valuation adjustments		(4.6	)		(5.0	)		(4.2	)		(4.6	)		(3.4	)

Adjusted balance	$	89.8		$	105.5		$	119.2		$	104.7		$	109.6
+ New OREO		17.0			16.1			29.4			50.6			53.4
+ Capitalized expenses		1.0			0.6			1.0			0.7			0.9
Disposals:
- Single transactions		(24.7	)		(27.4	)		(39.0	)		(31.1	)		(52.6	)
- Bulk sales		(4.3	)		-			(0.1	)		(1.5	)		(2.0	)
- Auctions		-			(0.4	)		-			-			-

Ending balance	$	78.8		$	94.4		$	110.5		$	123.4		$	109.3


(b)		OREO excludes foreclosed assets related to government insured mortgages.


ASSET QUALITY: REGIONAL BANKING Quarterly, Unaudited


																2Q11 Change vs.
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10


Total Regional Banking
Period-end loans ($ millions)	$	10,832		$	10,486		$	11,040		$	11,147		$	10,902			3	%		(1	)%

30+ Delinq. % (a)		0.82	%		0.84	%		0.85	%		1.03	%		1.17	%
NPL %		2.62			3.02			2.96			3.21			2.95
Charge-offs % (qtr. annualized)		0.69			1.03			1.25			1.45			1.41

Allowance / loans %		2.57	%		2.96	%		3.17	%		3.43	%		3.78	%
Allowance / charge-offs		3.86x			2.91x			2.52x			2.41x			2.75x


Key Portfolio Details
C&I
Period-end loans ($ millions)	$	6,604		$	6,227		$	6,750		$	6,745		$	6,406			6	%		3	%

30+ Delinq. % (a)		0.56	%		0.48	%		0.40	%		0.55	%		1.11	%
NPL %		1.98			2.39			2.36			2.70			2.10
Charge-offs % (qtr. annualized)		0.39			0.66			0.83			1.46			1.27

Allowance / loans %		2.43	%		2.77	%		2.80	%		3.07	%		3.57	%
Allowance / charge-offs		6.61x			4.27x			3.40x			2.20x			2.95x


Income CRE
Period-end loans ($ millions)	$	1,245		$	1,278		$	1,271		$	1,358		$	1,434			(3	)%		(13	)%

30+ Delinq. % (a)		1.17	%		1.23	%		1.06	%		2.00	%		1.14	%
NPL %		7.76			8.04			7.62			7.30			7.33
Charge-offs % (qtr. annualized)		0.91			1.94			2.28			1.62			1.65

Allowance / loans %		5.88	%		6.93	%		8.53	%		8.76	%		8.26	%
Allowance / charge-offs		6.39x			3.59x			3.56x			5.20x			5.04x


Residential CRE
Period-end loans ($ millions)	$	124		$	142		$	169		$	193		$	220			(13	)%		(44	)%

30+ Delinq. % (a)		6.87	%		7.35	%		4.98	%		1.48	%		1.47	%
NPL %		35.22			36.09			34.98			37.02			35.49
Charge-offs % (qtr. annualized)		7.64			5.61			9.11			5.46			9.95

Allowance / loans %		12.62	%		13.51	%		13.15	%		13.47	%		15.40	%
Allowance / charge-offs		1.55x			2.19x			1.29x			2.27x			1.41x


Consumer Real Estate
Period-end loans ($ millions)	$	2,571		$	2,554		$	2,555		$	2,553		$	2,537			1	%		1	%

30+ Delinq. % (a)		0.96	%		1.07	%		1.58	%		1.61	%		1.28	%
NPL %		0.48			0.54			0.46			0.21			0.13
Charge-offs % (qtr. annualized)		0.63			1.05			0.90			0.76			0.54

Allowance / loans %		0.88	%		0.91	%		0.87	%		0.82	%		0.83	%
Allowance / charge-offs		1.40x			0.88x			0.96x			1.08x			1.54x


Credit Card, Permanent Mortgage, and Other
Period-end loans ($ millions)	$	288		$	285		$	295		$	299		$	305			1	%		(6	)%

30+ Delinq. % (a)		1.23	%		1.57	%		1.65	%		1.97	%		1.48	%
NPL %		0.12			0.12			0.05			0.06			0.09
Charge-offs % (qtr. annualized)		3.52			2.34			4.13			3.40			3.57

Allowance / loans %		2.41	%		2.51	%		2.67	%		3.15	%		3.14	%
Allowance / charge-offs		0.68x			1.08x			0.64x			0.91x			0.88x

ASSET QUALITY: CORPORATE

Permanent Mortgage

Period-end loans ($ millions) (b)

175

151

168

N/A

30+ Delinq. % (a)

2.03

1.98

2.46

N/A

NPL %

0.65

0.76

0.33

N/A

Charge-offs % (qtr. annualized)

N/A

Allowance / loans % (c)

N/A

Allowance / charge-offs

N/A


NM - Not meaningful

N/A - Not applicable

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

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

(b)		Period-end balance increase for 2Q11 due to exercise of cleanup call for additional proprietary first lien securitization trust.

(c)		The valuation adjustments taken upon exercise of clean-up calls include expected losses.


ASSET QUALITY: NON-STRATEGIC Quarterly, Unaudited


																2Q11 Change vs.
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10


Total Non-Strategic Lending
Period-end loans ($ millions)	$	5,055		$	5,336		$	5,575		$	5,913		$	6,252			(5	)%		(19	)%

30+ Delinq. % (a)		2.27	%		2.69	%		3.05	%		3.27	%		3.03	%
NPL %		5.87			5.98			5.73			6.38			6.69
Charge-offs % (qtr. annualized)		3.70			3.70			4.51			4.67			5.92

Allowance / loans %		4.85	%		5.22	%		5.65	%		5.71	%		5.91	%
Allowance / charge-offs		1.28x			1.39x			1.20x			1.18x			0.97x


Key Portfolio Details
C&I (b)
Period-end loans ($ millions)	$	576		$	582		$	588		$	592		$	598			(1	)%		(4	)%

30+ Delinq. % (a)		—	%		0.17	%		—	%		2.14	%		0.08	%
NPL %		14.08			11.11			9.33			10.63			11.77
Charge-offs % (qtr. annualized)	NM				0.01			0.30			—			0.15

Allowance / loans %		8.00	%		8.31	%		8.62	%		8.91	%		8.09	%
Allowance / charge-offs	NM			NM				28.34x		NM				53.49x


Income CRE
Period-end loans ($ millions)	$	66		$	120		$	136		$	161		$	176			(45	)%		(62	)%

30+ Delinq. % (a)		—	%		—	%		2.55	%		2.31	%		2.66	%
NPL %		23.20			31.62			32.84			33.97			29.72
Charge-offs % (qtr. annualized)		2.64			5.44			15.60			4.57			13.20

Allowance / loans %		9.01	%		8.29	%		11.96	%		15.31	%		15.01	%
Allowance / charge-offs		2.30x			1.42x			0.69x			3.16x			1.02x


Residential CRE
Period-end loans ($ millions)	$	59		$	79		$	95		$	131		$	177			(25	)%		(67	)%

30+ Delinq. % (a)		1.49	%		0.98	%		—	%		0.13	%		3.74	%
NPL %		45.06			53.26			54.60			60.36			55.73
Charge-offs % (qtr. annualized)		9.22			3.81			2.51			4.44			26.57

Allowance / loans %		7.90	%		7.28	%		8.59	%		9.80	%		11.07	%
Allowance / charge-offs		0.71x			1.67x			2.71x			1.87x			0.32x


Consumer Real Estate
Period-end loans ($ millions)	$	2,812		$	2,933		$	3,062		$	3,235		$	3,398			(4	)%		(17	)%

30+ Delinq. % (a)		2.06	%		2.30	%		2.90	%		2.91	%		2.87	%
NPL %		0.80			0.82			0.68			0.65			0.52
Charge-offs % (qtr. annualized)		3.86			3.74			4.60			4.85			4.27

Allowance / loans %		3.91	%		4.08	%		4.18	%		4.08	%		4.17	%
Allowance / charge-offs		0.99x			1.08x			0.88x			0.81x			0.96x


Permanent Mortgage
Period-end loans ($ millions)	$	818		$	864		$	894		$	944		$	993			(5	)%		(18	)%

30+ Delinq. % (a)		4.46	%		6.09	%		5.66	%		5.50	%		4.98	%
NPL %		16.64			15.04			13.62			13.08			12.46
Charge-offs % (qtr. annualized)		3.88			4.05			3.82			5.79			6.01

Allowance / loans %		5.24	%		5.99	%		6.62	%		6.21	%		7.01	%
Allowance / charge-offs		1.33x			1.48x			1.67x			1.04x			1.15x


Other Consumer (c)
Period-end loans ($ millions)	$	30		$	36		$	41		$	52		$	76			(17	)%		(61	)%

30+ Delinq. % (a)		2.07	%		1.92	%		2.19	%		2.02	%		1.50	%
NPL %		31.24			42.03			46.75			58.04			70.47
Charge-offs % (qtr. annualized)		19.98			18.01			15.00			8.81			33.57

Allowance / loans %		9.27	%		9.53	%		13.13	%		16.92	%		18.24	%
Allowance / charge-offs		0.41x			0.53x			0.79x			1.58x			0.43x


Restricted Real Estate Loans
Period-end loans ($ millions) (d)	$	694		$	722		$	757		$	797		$	834			(4	)%		(17	)%

30+ Delinq. % (a)		2.77	%		2.94	%		3.44	%		3.73	%		3.52	%
NPL %		0.80			0.75			0.82			0.67			0.23
Charge-offs % (qtr. annualized)		4.76			5.08			5.71			5.75			6.24

Allowance / loans %		4.76	%		5.52	%		6.26	%		6.01	%		6.01	%
Allowance / charge-offs		0.98x			1.07x			1.06x			1.01x			0.94x


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

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

(b)		Includes trust preferred loan portfolio and other exited businesses.

(c)		Select remaining OTC amounts: PE loans: $9.3 million; NPL: 100%; Allowance: $1.9 million; 2Q11 Net charge-offs: $1.3 million.

(d)		2Q11 includes $649.2 million of consumer real estate loans and $44.9 million of permanent mortgage loans.


ASSET QUALITY: PORTFOLIO METRICS Unaudited

C&I Portfolio: $7.2 Billion (44.7% of Total Loans)


	% OS

General Corporate, Commercial, and Business Banking Loans		82.3	%
Mortgage Warehouse Line Balances		8.1	%
Trust Preferred Loans		6.5	%
Bank Holding Company Lending		3.1	%

Income CRE Portfolio: $1.3 Billion (8.2% of Total Loans)


Top 10 States as of June 30, 2011	% NPL			% OS

Tennessee		6.1	%		54.1	%
North Carolina		13.8	%		7.8	%
Georgia		1.6	%		7.1	%
Florida		29.6	%		5.3	%
Mississippi		11.9	%		4.3	%
Texas		25.0	%		4.1	%
South Carolina		2.2	%		3.9	%
West Virginia		-	%		2.3	%
Indiana		-	%		2.1	%
Kentucky		-	%		1.3	%

Consumer Real Estate (primarily Home Equity) Portfolio: $6.0 Billion (37.6% of Total Loans) (a)


Origination LTV and FICO for Portfolio as of June 30, 2011	Loan-to-Value
(excludes whole loan insurance)	<=80%			80% - 90%			>90%

FICO score greater than or equal to 740		31.9	%		15.2	%		6.2	%
FICO score 720-739		6.6	%		4.4	%		2.0	%
FICO score 700-719		6.6	%		4.0	%		2.1	%
FICO score 660-699		7.4	%		3.9	%		3.1	%
FICO score 620-659		2.3	%		1.2	%		1.2	%
FICO score less than 620		0.8	%		0.3	%		0.7	%

Consumer Real Estate Portfolio Detail:


				Origination Characteristics															NCO’s %
Vintage	Balance %			CLTV			FICO			% Broker (b)			% TN			% 1st lien			QTD

pre-2003		5	%		76	%		717			15	%		47	%		34	%		0.65	%
2003		8	%		75	%		729			16	%		33	%		40	%		0.87	%
2004		12	%		79	%		726			28	%		22	%		27	%		1.80	%
2005		18	%		80	%		731			19	%		18	%		16	%		5.35	%
2006		15	%		77	%		735			6	%		24	%		18	%		3.64	%
2007		18	%		79	%		740			14	%		27	%		19	%		3.43	%
2008		8	%		75	%		749			8	%		73	%		52	%		2.54	%
2009		5	%		72	%		754			-	%		87	%		59	%		0.65	%
2010		7	%		79	%		752			-	%		92	%		73	%		-	%
2011		4	%		81	%		756			-	%		92	%		81	%		-	%
Total		100	%		78	%		737	(c)		13	%		39	%		33	%		2.70	%


(a)		Consumer Real Estate portfolio includes $649.2 million of restricted real estate loans.

(b)		Correspondent and Wholesale.

(c)		737 average portfolio origination FICO; 728 weighted average portfolio FICO (refreshed).

Permanent Mortgage Portfolio: $1.1 Billion (6.6% of Total Loans) (a) (b) (c)


Top 10 States as of June 30, 2011	Del. %			% OS

California		16.7	%		23.0	%
Texas		17.8	%		9.5	%
Washington		16.9	%		7.5	%
Virginia		6.4	%		5.5	%
Arizona		35.7	%		4.6	%
Oregon		31.7	%		4.0	%
Maryland		10.2	%		4.0	%
Florida		45.1	%		3.9	%
Utah		28.2	%		3.6	%
North Carolina		13.6	%		3.1	%


(a)		Permanent Mortgage portfolio includes $44.9 million of restricted real estate loans.

(b)		Documentation type: 63% full doc; 31% stated; 6% other.

(c)		Product type: 67% jumbo; 18% Alt A; 15% other.


GLOSSARY OF TERMS

Adjusted Tangible Equity/RWA: Shareholders’ equity excluding intangible assets and unrealized gains/losses on available for sale securities and cash flow hedges divided by risk weighted assets.

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

Individually Impaired Loans: Commercial loans over $1 million that are not expected to pay all contractually due principal and interest and consumer loans that have experienced a troubled debt restructuring and are individually evaluated for impairment. The estimated loss on these loans is determined using a discounted cash flow (“DCF”) methodology or the estimated fair value of the underlying collateral less costs to sell, if the loan is considered collateral dependent. In accordance with accounting requirements, DCF loans are discounted using the applicable note rate, and typically reserves are maintained for DCF loans. Collateral dependent loans are generally charged off to the estimate of collateral value less cost to sell leaving no associated reserve.

Lower of Cost or Market (LOCOM): A method of accounting for certain assets by recording them at the lower of their historical cost or their current market value.

Reg E Opt-In: The 2010 requirement by Federal Reserve Board Regulation E that consumer customers of banks must elect, or opt-in, to continue to be eligible for fee-based overdraft protection services regarding debit card and ATM transactions. Consumer customers who do not opt-in cannot be charged fees for such services and will not receive such services.

Restricted Balances: Assets of a consolidated variable interest entity that can be used only to settle obligations of the consolidated variable interest entity and liabilities of a consolidated variable interest entity for which creditors (or beneficial interest holders) do not have recourse to the general credit of the primary beneficiary.

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.

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 to loans excluding insured loans: Ratio is allowance for loan losses to total period end loans excluding insured 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.


NON-GAAP TO GAAP RECONCILIATION Quarterly, Unaudited


(Thousands)	2Q11			1Q11			4Q10			3Q10			2Q10

Tangible Common Equity (Non-GAAP)
(A) Total equity (GAAP)	$	2,703,952		$	2,640,057		$	2,678,005		$	3,306,888		$	3,287,233
Less: Preferred stock capital surplus - CPP		-			-			-			810,974		$	806,856
Less: Noncontrolling interest (a)		295,165			295,165			295,165			295,165		$	295,165

(B) Total common equity	$	2,408,787		$	2,344,892		$	2,382,840		$	2,200,749		$	2,185,212
Less: Intangible assets (GAAP) (b)		164,067			183,625			195,061			196,443		$	197,825

(C) Tangible common equity (Non-GAAP)	$	2,244,720		$	2,161,267		$	2,187,779		$	2,004,306		$	1,987,387
Less: Unrealized gains on AFS securities, net of tax		58,068			39,338			45,366			61,836		$	68,189

(D) Adjusted tangible common equity (Non-GAAP) (c)	$	2,186,652		$	2,121,929		$	2,142,413		$	1,942,470		$	1,919,198


Tangible Assets (Non-GAAP)
(E) Total assets (GAAP)	$	25,039,936		$	24,438,344		$	24,698,952		$	25,384,181		$	26,254,226
Less: Intangible assets (GAAP) (b)	$	164,067		$	183,625		$	195,061		$	196,443		$	197,825

(F) Tangible assets (Non-GAAP)	$	24,875,869		$	24,254,719		$	24,503,891		$	25,187,738		$	26,056,401


Period-end Shares Outstanding
(G) Period-end shares outstanding		263,699			263,335			263,366			237,061			236,840


Tier 1 Common (Non-GAAP)
(H) Tier 1 capital (d) (e)	$	2,853,306		$	2,790,335		$	2,812,471		$	3,526,115		$	3,499,759
Less: Preferred stock capital surplus - CPP		-			-			-			810,974		$	806,856
Less: Noncontrolling interest - FTBNA preferred stock (a) (f)		294,816			294,816			294,816			294,816		$	294,816
Less: Trust preferred (g)		200,000			200,000			200,000			300,000		$	300,000

(I) Tier 1 common (Non-GAAP)	$	2,358,490		$	2,295,519		$	2,317,655		$	2,120,325		$	2,098,087


Risk Weighted Assets
(J) Risk weighted assets (d) (e)	$	19,632,480		$	19,569,006		$	20,102,775		$	20,332,364		$	20,837,537


Ratios
(C)/(F) Tangible common equity to tangible assets (TCE/TA) (Non-GAAP)		9.02	%		8.91	%		8.93	%		7.96	%		7.63	%
(A)/(E) Total equity to total assets (GAAP)		10.80	%		10.80	%		10.84	%		13.03	%		12.52	%
(C)/(G) Tangible book value per common share (Non-GAAP)	$	8.51		$	8.21		$	8.31		$	8.45		$	8.39
(B)/(G) Book value per common share (GAAP)	$	9.13		$	8.90		$	9.05		$	9.28		$	9.23
(I)/(J) Tier 1 common ratio (Non-GAAP) (d)		12.01	%		11.73	%		11.53	%		10.43	%		10.07	%
(H)/(E) Tier 1 capital to total assets (GAAP) (d)		11.40	%		11.42	%		11.39	%		13.89	%		13.33	%
(D)/(J) Adjusted tangible common equity to risk weighted assets (TCE/RWA) (Non-GAAP) (c) (d)		11.14	%		10.84	%		10.66	%		9.55	%		9.21	%


Net interest income adjusted for impact of FTE (Non-GAAP)
Regional Banking
Net interest income (GAAP)	$	137,080		$	135,502		$	145,280		$	143,042		$	138,179
Fully taxable equivalent (“FTE”) adjustment		1,353			1,243			924			666			427

Net interest income adjusted for impact of FTE (Non-GAAP)	$	138,433		$	136,745		$	146,204		$	143,708		$	138,606


Capital Markets
Net interest income (GAAP)	$	5,564		$	5,576		$	5,877		$	8,584		$	4,824
Fully taxable equivalent (“FTE”) adjustment		76			72			71			66			66

Net interest income adjusted for impact of FTE (Non-GAAP)	$	5,640		$	5,648		$	5,948		$	8,650		$	4,890


Corporate
Net interest income (GAAP)	$	445		$	(270	)	$	(2,064	)	$	(2,845	)	$	1,113
Fully taxable equivalent (“FTE”) adjustment		68			71			53			59			35

Net interest income adjusted for impact of FTE (Non-GAAP)	$	513			(199	)		(2,011	)		(2,786	)	$	1,148


Non-Strategic
Net interest income (GAAP)	$	29,771		$	31,947		$	33,143		$	37,362		$	37,948
Fully taxable equivalent (“FTE”) adjustment		-			-			-			-			-

Net interest income adjusted for impact of FTE (Non-GAAP)	$	29,771		$	31,947		$	33,143		$	37,362		$	37,948


Total Consolidated
Net interest income (GAAP)	$	172,860		$	172,755		$	182,236		$	186,143		$	182,064
Fully taxable equivalent (“FTE”) adjustment		1,497			1,386			1,048			791			528

Net interest income adjusted for impact of FTE (Non-GAAP)	$	174,357		$	174,141		$	183,284		$	186,934		$	182,592

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


(a)		Included in total equity on the consolidated balance sheet.

(b)		Includes goodwill and other intangible assets, net of amortization.

(c)		See Glossary of Terms for definition of ratio.

(d)		Current quarter is an estimate.

(e)		Defined by and calculated in conformity with bank regulations.

(f)		Represents FTBNA preferred stock included in noncontrolling interest.

(g)		Included in term borrowings on the consolidated balance sheet.

1 First Horizon National Corporation Second Quarter 2011 Earnings July 15, 2011

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

3 Optimize business mix for profitability and returns Replace runoff, low margin, Non-Strategic assets with higher margin, Regional Banking assets Focused on improving profitability in all lines of business Capital Markets continues to be strong contributor Improve productivity and efficiency Replace revenue impacted by regulation Reduce wind-down and environmental expenses Business process optimization, organization and infrastructure simplification Manage excess capital smartly Maintain appropriate levels for future banking environment Disciplined approach to deploying capital Successful Execution: FHN Strategic Priorities Building a Foundation for Long-Term Earnings Power

4 Successful Execution: Controlling What We Can Control Driving Value From Balance Sheet Strong Capital Position Optimize Business Mix For Profitability and Returns Manage Capital1 All data is 2Q11 compared to 1Q11 unless otherwise noted. 1Tier 1, Tier 1 Common, TCE+Reserves/Risk Weighted Assets: current quarter is estimate; Tier 1 Common, TCE, & TA, TCE+Reserves/Risk Weighted Assets are non-GAAP numbers, and a reconciliation is provided in the appendix. Tier 1 ratio at 14.5% Tier 1 Common at 12.0% TCE + Reserves at 14.1% TCE/TA at 9.0% Period end Regional Bank loans up 3% New Commercial loan spreads up 19bps year over year, flat linked quarter New Commercial loans funded up 67% year over year Period end Non-Strategic loans declined 5% Focus on Expense Control Improve Productivity and Efficiency Consolidated expenses down $6mm or 2% to $309mm; Includes $16.6mm of restructuring, repositioning & efficiency charges Mortgage repurchase provision expense decreased 34% Realigned market organizational structure Simplified lines of businesses Executing $110mm of cost saves in core businesses

5 Financial Results

6 Consolidated Financial Results Net income available to common shareholders of $43mm, diluted EPS of $0.16 Net income from continuing operations of $42mm Core Businesses1 pre-tax income of $63mm; Consolidated pre-tax income of $52mm Provision at $1mm Provision flat to 1Q11 Net charge-offs of $66mm, down 14% linked quarter and down 50% from 2Q10 $65mm reserve decrease, declined for the eighth consecutive quarter Total revenues at $362mm, down 2% from 1Q11 Consolidated NII stable; Core Business1 NII up Period end loans up 1%, average core deposits up 4% since 1Q11 Regional Banking revenues up 2% linked quarter Capital Markets revenues down 13% from 1Q11 Net hedging results at $15.4mm, up from $12.5mm in 1Q11 Consolidated expenses at $309mm in 2Q11, down 2% linked quarter and 8% year over year Regional Banking expenses declined 3% since 1Q11 Non-Strategic expenses decreased 15% since 1Q11 $25mm of mortgage repurchase expense vs. $37mm in 1Q11 $16.6mm of restructuring, repositioning and efficiency charges in the Corporate segment in 2Q11 vs. $3.1mm in 1Q11 1Core businesses include Regional Banking, Capital Markets, and Corporate segment. Numbers may not add to total due to rounding.

7 Regional Banking Capital Markets Corporate Non-Strategic Second Quarter 2011 Segment Highlights 2Q11 Drivers / Impacts Repurchase provision of $25mm in 2Q11 vs. $37mm in 1Q11 $206 $(147) 2Q11 Revenue 2Q11 Expense $83 $(67) $9 $(36) $63 $(59) Core Business (subtotal) Total $299 $(250) $362 $(309) 1Q11 Pre-Tax Earnings ($mm) 2Q11 Average fixed income daily revenue of $1.1mm in 2Q11 vs. $1.3mm in 1Q11 Net hedging results of $15.4mm in 2Q11 vs. $12.5mm 1Q11 Provision credit in 2Q11 of $13.7mm vs. provision credit of $12.4mm in 1Q11 Numbers may not add to total due to rounding. Pre-tax earnings, Revenue, and Expense are in millions. Revenue includes securities gain / losses. Linked Quarter Change $mm / Percent $3 / 2% $(12) / (13)% $(3) / (25)% $4 / 6% $(12) / (4)% $(9) / (2)% $(4) / (3)% $(7) / (9)% $16 / 76% $5 / 2% $(11) / (15)% $(6) / (2)% 2Q11 included $3.4mm interest related to tax refund; 1Q11 included $5.8mm gain related to TRUPs redemption 2Q11 included $16.6mm in restructuring charges vs $3.1mm in 1Q11. 1Q11 also included $3.3mm benefit related to Visa litigation Expenses declined from lower variable compensation $31 $28 $(6) $53 $(34) $19 NII up 1% due to shorter day count in 1Q11 and increased loan fees in 2Q11. Fee income up 2% linked quarter from seasonally lower NSF fees in 1Q11 2Q10 $73 $17 $(27) $63 $(11) $52

8 Successful Execution: Balance Sheet and NIM Period end total assets at $25.0B in 2Q11 Period end Regional Banking loans increased $345mm or 3% from 1Q11, including $199mm growth in loans to mortgage companies Period end Non-Strategic loans decreased $281mm or 5% from 1Q11 Consolidated average core deposits rose 2% linked quarter, 1% year over year Consolidated NIM down 2bps linked quarter to 3.20% Core businesses NIM1 at 3.57%, down 1bp linked quarter Numbers/percentages may not add due to rounding 1Core businesses NIM is a non-GAAP number relating to the three core business segments: Regional Banking, Capital Markets, and Corporate. Net interest margin is computed using total net interest income adjusted for FTE. Refer to the non-GAAP to GAAP reconciliations in the appendix. Adverse Impact from Commercial Non-Accruals 15bps Net Interest Margin by Segment1

Current loan composition in Regional Bank reflects desirable mix for consolidated balance sheet Trends in loan pipeline shifting towards more attractive mix with an emphasis on C&I loans (Corporate and Asset Based Lending; industries in pipeline include medical, manufacturing and government); opportunities in CRE Regional Bank Commercial Loan Pipeline Regional Bank Commercial Loans Funded 67% $1.6B $1.0B 77% 2Q11 Regional Bank Loan Balances Regional Bank New Commercial Loan Spreads 380bps Significant focus to enhance profitability of balance sheet Competitive conditions and market still challenging but improving Pricing credit for attractive returns on capital C&I CRE Successful Execution: Driving More Value from the Balance Sheet 9 Other 4%

10 Successful Execution: Improving Productivity and Efficiency $110mm Identified in Cost Savings Goal of 60%-65% Efficiency Ratio Core Business Expenses1 Non-Strategic Expenses $600mm $100mm Capital Markets Regional Bank Corporate $110mm identified in cost savings, in addition to expected continued reduction in Non-Strategic expenses $50mm annualized impact in 2Q11 run rate Additional $60mm of actions in execution, targeted to be largely completed by the end of 2011 FTE decline of 4% linked quarter, 11% YOY Near-term offsets from technology investments and elevated environmental costs Targeting 20-25% reduction from the level of 2010 consolidated expenses by the end of 2013 $504 $476 1Charges for restructuring, repositioning, and efficiency initiatives of $0.6mm in 1H10 and $19.7mm in 1H11 excluded from the core business totals. 24% 6%

11 Numbers may not add due to rounding. 1Requests reflect pipeline as of each respective quarter end. 2As of 6/30/11. Based on UPB. The pipeline represents active investor claims and mortgage insurance (MI) cancellations under review, both of which could occur on the same loan. Excludes MI cancellation notices that have been reviewed and coverage has been lost. For purposes of estimating loss, MI cancellation notices where coverage has been lost are contemplated. Mortgage Repurchase Reserve $150mm New GSE Repurchase Requests by Vintage1 Total Pipeline by Vintage1 Total Pipeline of Repurchase Requests2 $600mm Mortgage Repurchase-Related Expenses Decline for Fourth Consecutive Quarter Pipeline of investor requests at $451mm for 2Q112 $271mm of GSE-related claims $121mm of mortgage insurer-related claims $9mm of private whole loan-related claims $50mm of other non-repurchase requests Currently, no repurchase requests from private securitizations, no additional lawsuits other than those reported in October 2010 Resolutions up 10% linked quarter, up 37% vs 4Q10 New requests down 18% linked quarter, down 28% vs 4Q10 Rescission rates have improved but still within 45- 55% range; severity stable at 50-60% Sold mortgage origination platform in August 2008 ($ in mm) 2Q10 3Q10 4Q10 1Q11 2Q11 Beginning Balance $126 $162 $175 $183 $183 Net Realized Loss ($20) ($36) ($36) ($37) ($39) Provision $56 $49 $44 $37 $25 Ending Balance $162 $175 $183 $183 $169 $600mm

12 Private Securitizations Numbers may not add to total due to rounding. Data as of 5/30/11. June Remits. Data source: First American Core Logic Loan Performance Database/Company Analysis. FHN has not verified the accuracy of this data. 1Origination data represents total originations of active deals. 2Defined as the Countrywide private securitizations from 2004-2007. 3Paid off refers to balances no longer outstanding. Total 2004-2007 Original UPB1 $418B $33B FHN originated $33B of private securitizations, consisting of 60% Alt-A, 40% Jumbo, and no subprime from 2004-2007 FHN has received no repurchase requests from these securitizations FHN securitizations have generally performed favorably overall to industry cohort benchmarks Reps and warranties are generally more limited than for GSEs Origination Type of Total 2004-2007 Original UPB1

13 $150mm Successful Execution: Asset Quality Trends Continue to Improve Reserves and Net Charge-Offs Reserves vs. Peers2 Data as of 6/30/11, unless otherwise noted. 2Source: SNL. Peer Median includes top 50 publicly traded U.S. banks by total asset size as of 1Q11. Numbers may not add due to rounding. Net charge-offs down 14% from 1Q11, down 50% since 2Q10 2Q11 net charge-offs declined $11mm from 1Q11 to $66mm or 1.67% (annualized) of average loans Regional Bank net charge-offs down $9mm or 32% linked quarter, down $19mm or 52% year over year Non-Strategic net charge-offs declined $2mm or 4% linked quarter, down $47mm or 50% year over year Reserves for loan losses decreased $65mm linked quarter to $524mm or 3.26% of period end loans Reserve decrease due to improving credit trends, lower loan balances from run-off, paydowns, charge-offs $133 $111 $100 $77 $66

14 Successful Execution: Non-Performing Assets Continue to Decline NPAs down $71mm or 9% linked quarter, down $504mm or 40% from the peak in 1Q09 Improvement driven by lower inflow and higher resolutions Lower NPL inflows in 2Q11 reflect continued portfolio stability NPL levels down 8% from 1Q11, down 15% since 2Q10 ORE balances declined from continued disposition activity ORE Activity2 NPLs Activity1 Numbers may not add due to rounding. 1Includes Commercial and One-Time Close Portfolios only. 2ORE excludes foreclosed real estate from government insured loans. Non-Performing Assets ORE Activity2 (1)% (14)% (9)% (2)% (2)% (1)% (14)% $1.4B 2% (9)%

15 Building Long-Term Earnings Power: FHNC Bonefish - Long-Term Targets 2Q11 Consolidated 2Q11 Core1 Long-Term Targets ROA 0.74% 1.06% 1.25 - 1.45% NIM 3.20% 3.57% 3.50 - 4.00% NCO / Average Loans2 1.67% 0.68% 0.30 - 0.70% Fee Income as % of Revenue 52% 52% 40 - 50% Efficiency Ratio 85% 84% 60 - 65% 1Core businesses include Regional Banking, Capital Markets, and Corporate segment. Certain core data is non-GAAP and a reconciliation is provided in the appendix. 2ROA and NCO / Average Loans are annualized.

16 Optimize business mix for profitability and returns Replace runoff, low margin, Non-Strategic assets with higher margin, Regional Banking assets Focused on improving profitability in all lines of business Capital Markets continues to be strong contributor Improve productivity and efficiency Replace revenue impacted by regulation Reduce wind-down and environmental expenses Business process optimization, organization and infrastructure simplification Manage excess capital smartly Maintain appropriate levels for future banking environment Disciplined approach to deploying capital Successful Execution: FHN Strategic Priorities Building a Foundation for Long-Term Earnings Power

17 Appendix

18 Liquidity and Capital Remain Strong Average core deposits in the Regional Bank up 2% linked quarter and 3% since 2Q10 to $12.9B Numbers may not add to total due to rounding. 1Source: SNL. Peer median includes top 50 publicly traded U.S. banks by total asset size at 1Q11. TCE/RWA is not adjusted for unrealized gains on AFS securities and is a non-GAAP number, and a reconciliation is provided at the end of the appendix. Tier 1 Common and TCE/TA are non-GAAP numbers, and a reconciliation is provided at the end of the appendix. 2Excluding Securities Sold Repos, Trading Liabilities, and sub-debt and other collateralized borrowings of $3.2B. 2Q11 Capital & Liquidity Actions Tier 1 Common Ratio1 Wholesale Funding2 - P/E Balances ($B) Capital Ratios1

19 Centralizing and streamlining consumer and business loan origination support Reducing span of control in support functions to align with benchmarks Consolidating back office functions Automating manual processes with upgraded technology Consolidating IT applications and systems Investing more than $100mm in technology from 2009 to year end 2011 Reducing telecommunications costs Optimizing marketing spend Renegotiating vendor contracts Managing demand Successful Execution: Improving Productivity and Efficiency Streamlining Regional Bank structure Optimizing commercial/business staffing coverage Closing lower value financial centers Aligning branch staffing with customer demand Centralizing mortgage origination Divesting low margin businesses Procurement Spend Reduction Business Model Optimization Business Process Simplification Technology Infrastructure Rationalization

20 Credit Quality Summary by Portfolio As of 6/30/11; numbers may not add to total due to rounding.

21 Income CRE Portfolio Construction 10% Land 10% Mini-Perm/ Construction 80% Other 10% Land 10% Industrial 14% Hospitality 11% Retail 21% Multi-Family 18% Office 16% Performance Collateral Type1 Loan Type1 Numbers may not add to total due to rounding. 1As of 6/30/11; NPLs as a percentage of each portfolio. 2"Other" includes Non-Owner Occupied Single Family Residential and Multi-Use Projects. Balances of $1.3B at 6/30/11 95% managed in Regional Banking with relationship- oriented customers Proactively managing problem projects and maturities to regulatory standards Do not capitalize interest and do not fund interest on distressed properties Net charge-offs down 56% or $4.4mm linked quarter to $3.5mm Reserves of 6.0% at 6/30/11 Likely to remain at stressed performance levels in 2011 with some moderation

22 C&I Portfolio All Other C&I 80% TRUPs 6% Consolidated C&I Portfolio C&I Loan Composition Bank Related Loans 3% Other Correspondent Banking 11% NPLs/Total Loans of 1.53% without TRUPs and Bank Related loans $7.2B portfolio, diversified by industry, managed in Regional Bank Includes loans to mortgage warehouse companies (correspondent banking) of $384mm in 1Q11 vs. $583mm in 2Q11 Net charge-offs down $4mm linked quarter C&I consolidated reserves of 2.87% at 6/30/11 Numbers/percentages may not add due to rounding.

23 C&I Portfolio: TRUPS & Bank-Related Loans 2Q11 TRUPs & Bank-Related Loans C&I w/o TRUPs & Bank-Related Loans Total C&I Portfolio PE Balances ($mm) $686 $6,494 $7,180 Reserves ($mm) $1151 $127 $206 Reserve Coverage 16.77%1 1.95% 2.87% NPL % 16.47% 1.53% 2.96% NCO %2 1.42% 0.23% 0.35% TRUPS and Bank-Related Loan Coverage 1Reserve coverage includes $35.6mm of LOCOM on TRUPs. 2NCO% is QTD Annualized. Numbers may not add to total due to rounding. $686mm balances in TRUPS and bank-related loans $301mm whole-loan TRUPs to banks $164mm whole-loan TRUPs to insurance companies $135mm loans to bank holding companies $86mm other loans secured by bank stock Average TRUP size of $9mm Significant focus is directed at this portfolio TRUPs and bank holding company loans are re-graded quarterly Ten TRUPs on deferral at 6/30/11

24 Home Equity: Performance and Characteristics Portfolio Characteristics Geographic Distribution 30+ Delinquency: Key Drivers Core Banking Customers TN 39% Other 41% CA 14% FL 3% 3% GA Numbers/Percentages may not add due to rounding. All charts and graphs include $649.2mm of restricted consumer real estate loans. 52% % of portfolio 13% 13% 15% 8% 87% 13% % of portfolio 33% 67% % of portfolio FICO Score-Origination Channel Lien Position

25 Consumer Real Estate Portfolio 30+ Delinquency: Non-Strategic vs. Regional Net Charge-Offs Vintage Mix Non-Strategic Portfolio Run-Off2 1Source: McDash industry data as of May 2011. 2Channeling changed beginning March 2010 to be consistent with Accounting Segments. All charts and graphs include $649.2mm of restricted real estate loans. $6B Industry1 = 6.76% $60mm $53 $43 $40 $51 $57

26 Mortgage Repurchases: Origination and Loan Characteristics ~$70B of originations from 2005 to 2008 Received ~$1.1B1 of GSE-related repurchase requests to date, or 1.6% of originations Represent 97% of all active repurchase/make whole requests in pipeline at 6/30/112 Private Securitizations3 ~$47B of originations from 2000 to 2007 9 securitizations of jumbo loans called in 2Q11 and 4Q104 112 active securitizations, reflected in current UPB 54 first lien Jumbo securitizations 58 first lien Alt-A securitizations Currently, no repurchase requests related to private securitizations; along with other originators, we are named in three lawsuits by securities purchasers Outstanding UPB of ~$13B 59% Alt-A 41% Jumbo Loans Whole Loan Sales/ Non-GSE Represent 3% of all active repurchase/make whole requests in 2Q11 pipeline GSE Originations GSEs Private Securitizations/Whole Loan Sales/Non-GSE $25B 1Requests include MI cancellation notices. 2GSEs account for 97 percent of all actual repurchase/make-whole requests in the pipeline as of 6/30/11 and 83 percent of the active pipeline inclusive of PMI cancellation notices and all other claims. 3Supplemental private securitization data provided on FHN's website at ir.fhnc.com. 4Aggregate original UPB of $3.8B. Upon recognition by FHN called loans are no longer subject to repurchase risk. 5Data source: First American Core Logic Loan Performance Database/Company Analysis. FHN has not verified the accuracy of this data. Jumbo original balances exclude inactive deals. Jumbo and Alt-A5 $10B $5B

27 Private Label Repurchase Risk Different than GSE Risk Resolution Representation General reps and warranties are not as comprehensive as GSE reps and warranties No specific representation and warranty on fraud in the origination Access Voting Rights Difficult for most investors to access loan files Significant up front cost with unknown returns; must indemnify trustee Generally requires a coordinated investor effort (25% of the "voting rights") to compel trustees to investigate and pursue repurchase claims Investor interests are not necessarily aligned Longer resolution process Longer timeline may decrease probability of successful claims

28 Private Securitizations: Delinquencies and Cumulative Losses Jumbo 60+ Day Delinquencies Alt-A Cumulative Losses Alt-A 60+ Day Delinquencies Jumbo Cumulative Losses FHN Industry1 6% 13% 8% 12% Vintage Remaining Balance / Total 2004-2007 Current Jumbo and Alt-A Balance 6% 28% 19% 8% 11% 12% 8% 9% Vintage Original Balance / Total 2004-2007 Original Jumbo and Alt-A Balance 8% 27% 18% 7% Data as of 5/30/11. June Remits. Data source: First American Core Logic Loan Performance Database/Company Analysis. FHN has not verified the accuracy of this data. Cohort (Industry) = Loans of similar type/vintage relevant reference group. Numbers may not add to total due to rounding. Supplemental private securitization data provided on FHN's website at ir.fhnc.com.

29 Reconciliation to GAAP Financials Slides in this presentation use non-GAAP information of net interest income adjusted for impact of FTE. That information is not presented according to generally accepted accounting principles (GAAP), and is reconciled to GAAP information below.

30 Reconciliation to GAAP Financials Slides in this presentation use non-GAAP information of tangible assets, tangible common equity, tier 1 common capital, and various ratios using one or more of those measures. That information is not presented according to generally accepted accounting principles (GAAP), and is reconciled to GAAP information below. 1Includes goodwill and other intangible assets, net of amortization. 2Current quarter is an estimate. Numbers may not add to total due to rounding.

31 Reconciliation to GAAP Financials Slides in this presentation use non-GAAP information of net interest income, assets, net interest margin, net charge- offs, fee income, revenue, expense and various ratios using one or more of those measures. That information is not presented according to generally accepted accounting principles (GAAP), and is reconciled to GAAP information below. Numbers may not add to total due to rounding. 1ROA and Net Charge-offs / Average loans are annualized.

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