FIRST HORIZON CORP - FORM 8-K - EX-99.1 - FIRST HORIZON NATIONAL CORPORATION FINANCIAL SUPPLEMENT AND INVESTOR SLIDE

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Exhibit 99.1

LOGO

FIRST QUARTER 2012

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
Net Interest Income		12
Average Balance Sheet: Yields and Rates		13
Mortgage Servicing Rights		14

Business Segment Detail
Segment Highlights		15
Regional Banking		16
Capital Markets		17
Corporate		18
Non-Strategic		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 fully taxable equivalent (“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 demonstrated by their use by various banking regulators in reviewing the capital adequacy of financial institutions. 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

LOGO

Regional Banking

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

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

Capital Markets

- Fixed income sales, trading, and strategies for institutional clients in the 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 consumer lending loan portfolios

- Trust preferred loan portfolio

- Legacy mortgage servicing

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


PERFORMANCE HIGHLIGHTS

(First Quarter 2012 vs. Fourth Quarter 2011)

Consolidated

- Net income available to common shareholders was $30.5 million, or $.12 per diluted share, compared to $34.9 million, or $.13 per diluted share in fourth quarter

- Net interest income (“NII”) decreased $6.9 million in first quarter to $171.9 million; The net interest margin (“NIM”) declined to 3.12 percent from 3.23 percent

- The decrease in NII is primarily attributable to a decline in loan balances, overall lower reinvestment rates, and lower cash basis NII

- The decline in NIM is largely driven by excess cash balances held at the Fed due to deposit inflow, lower reinvestment rates, and cash basis NII

- Noninterest income (including security gains) was $202.4 million in first quarter, an increase of $21.2 million from fourth quarter

- Increase primarily driven by higher fixed income revenue within capital markets in first quarter

- Provision expense was $8.0 million in first quarter compared to $10.0 million in fourth quarter

- Noninterest expense increased $10.0 million to $322.0 million in first quarter

- Expenses within the capital markets and regional banking segments increased primarily due to higher personnel costs

- Period-end and average loan balances were $16.0 billion for the first quarter

- The decrease in the loan portfolio is primarily driven by the decline in loans to mortgage companies as well as continued run-off within the non-strategic portfolios

- Average core deposits increased slightly to $15.7 billion in first quarter, period-end increased $623.1 million to $16.2 billion

Regional Banking

- Net interest margin decreased 7 basis points to 5.16%, NII decreased $3.6 million to $146.6 million in first quarter

- Decrease in NII primarily attributable to lower commercial loan balances in first quarter and impact of day variance

- Provision credit was $7.4 million in first quarter compared to $12.7 million in prior quarter

- Reflects continued improvement primarily in the commercial loan portfolio resulting in lower required reserves

- Period-end loans decreased $222.3 million to $11.5 billion primarily due to decline in loans to mortgage companies

- Noninterest income decreased to $59.9 million in first quarter from $64.6 million in fourth quarter

- Deposit fee income decreased primarily due to seasonality in non-sufficient funds (“NSF”) fee structure

- Prior quarter included $2.0 million of Visa volume incentives

- Noninterest expense increased to $139.4 million in first quarter from $136.4 million in prior quarter

- Increase driven primarily by higher personnel costs resulting from elevated pension-related costs, FICA reset, and bonuses

Capital Markets

- Fixed income revenues increased to $98.6 million in first quarter from $80.7 million in fourth quarter

- Fixed income average daily revenue (“ADR”) was $1.6 million in first quarter compared to $1.3 million in fourth quarter

- Elevated fixed income volume driven by strong performance of both depository and nondepository customers

- Noninterest expense increased to $80.3 million in first quarter from $66.7 million in prior quarter

- Variable compensation costs increased consistent with the increase in fixed income ADR

- First quarter personnel costs also negatively impacted by FICA reset

Corporate

- NII was negative $4.7 million in first quarter compared to negative $3.8 million in fourth quarter primarily due to a decline in income from investment securities

- Noninterest income (including securities gains) was $9.3 million in first quarter compared to $9.9 million in prior quarter

- Decline impacted by recognition of $4.0 million of interest related to a tax refund in prior quarter; partially offset by increase in deferred compensation income

- Noninterest expense decreased to $22.5 million in first quarter from $29.2 million in prior quarter

- Fourth quarter included an $8.3 million increase in derivative liabilities associated with prior sales of Visa shares related to the decline in the conversion ratio for Visa Class B shares

- The decline in restructuring costs, primarily severance, was largely offset by an increase in deferred compensation expense

PERFORMANCE HIGHLIGHTS (continued)

(First Quarter 2012 vs. Fourth Quarter 2011)

Non-Strategic

- NII decreased $2.6 million to $24.4 million in first quarter due to contracting loan portfolios

- Provision expense decreased to $15.4 million in first quarter from $22.7 million in prior quarter due to continued stabilization and runoff

- Noninterest income increased to $26.5 million in first quarter from $18.5 million in prior quarter due to a rise in mortgage banking income

- Positive net hedging results increased to $9.1 million from $5.9 million in prior quarter

- Servicing income in first quarter favorably affected by elevated loan liquidations and modifications resulting in recovery of servicing fees

- Noninterest expense increased slightly to $79.8 million in first quarter from $79.6 million in prior quarter

- Provisioning for repurchase and foreclosure losses was $49.3 million in first quarter compared to $45.0 million in fourth quarter

- The repurchase liability for first lien mortgage loans decreased from $165.3 million to $161.2 million in first quarter

- Active pipeline declined to $380.3 million from $383.5 million in prior quarter

- New requests/private mortgage insurance (“MI”) cancellation notices were $228.2 million in first quarter compared to $177.7 million in prior quarter

- Resolutions increased to $250.3 million in first quarter from $240.5 million in prior quarter

- Cumulative average rescission rates ranging between 45 percent and 55 percent with average loss severities ranging between 50 percent and

60 percent

Asset Quality

- Allowance as a percentage of loans ratio decreased to 217 basis points from 234 basis points in prior quarter

- Reflects a $20.4 million net allowance decrease associated with the commercial portfolio and $18.0 million related to the consumer portfolio

- Provision expense declined to $8.0 million during first quarter from $10.0 million in prior quarter

- Annualized net charge-offs decreased to 116 basis points of average loans from 184 basis points in prior quarter

- Net charge-offs were $46.3 million in first quarter compared to $75.3 million in prior quarter

- Commercial net charge-offs decreased $24.3 million to $10.7 million in first quarter

- Prior quarter included a sizeable charge-off associated with one bank-related relationship (trust preferred and bank holding company loan)

- Consumer net charge-offs were $35.6 million in first quarter, a $4.7 million decline from prior quarter

- Nonperforming assets (“NPAs”) increased 1 percent from prior quarter; NPA ratio rose to 266 basis points from 257 basis points

- The increase in consumer NPLs driven by $27.5 million second liens being classified as nonperforming as a result of regulatory guidance issued in first quarter.

- Foreclosed assets declined as disposition activity more than offset new inflow

- Troubled debt restructurings (“TDRs”) were $429.6 million at the end of first quarter compared with $382.2 million prior quarter

- Commercial Portfolio:

- Reserves decreased $20.4 million from prior quarter primarily driven by the C&I portfolio

- Reflects continued aggregate improved risk profile resulting in upgrades

- Overall stabilization within the TRUPs and bank stock portfolio; the lowest tier borrowers remain under duress but are closely monitored

- Consumer Portfolio:

- Reserves decreased $18.0 million in first quarter from $198.4 million in fourth quarter driven by consumer real estate portfolio

- Balances of consumer real estate loans increased within the regional banking segment, more than offsetting runoff from the non-strategic portfolios

- Performance of the home equity portfolio improved in first quarter; 30+ delinquency rates decreased to 148 basis points from 170 basis points in prior quarter

- Reserves for the Permanent Mortgage portfolio increased $7.1 million; Allowance to loans increased to 3.62 percent from 2.55 percent

- The increase in reserves was primarily associated with TDRs

- 30+ delinquencies improved to 2.16 percent from 3.33 percent in prior quarter

Taxes

- First quarter includes approximately $6 million of positive effect from permanent tax credits

- Prior quarter included approximately $15 million in credits which included $6 million associated with audit settlements and statute expirations

Capital and Liquidity

- Paid $0.01 per share dividend April 1, 2012

- Repurchased shares costing $44.5 million in first quarter under the $100 million stock repurchase program

- Repurchased shares costing $44.1 million in prior quarter

- Volume weighted average price for all share repurchases under the stock repurchase program of $8.11 per share (before $.03 per share broker

commission)

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

- 8.70% for tangible common equity to tangible assets

- 14.22% for Tier 1

- 17.67% for Total Capital

- 11.73% for Tier 1 Common


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

		00000000			00000000			00000000			00000000			00000000
(Thousands)	1Q12			4Q11			3Q11			2Q11			1Q11

By Income Statement Impact
Noninterest income
All other income and commissions	$	-		$	-		$	1,200		$	-		$	-
Gain on divestiture		200			-			-			-			-
Noninterest expense
Employee compensation, incentives, and benefits		(152	)		3,760			2,128			7,511			2,253
Occupancy		44			39			1,031			59			795
Legal and professional fees		15			(27	)		-			-			-
All other expense		5			220			74			9,026			13
Total gain/(loss) before income taxes		288			(3,992	)		(2,033	)		(16,596	)		(3,061	)
Income/(loss) from discontinued operations (a)		(96	)		(84	)		8,951			441			(10,514	)
Net impact resulting from restructuring, repositioning, and efficiency initiatives	$	192		$	(4,076	)	$	6,918		$	(16,155	)	$	(13,575	)

(a)	Includes amounts related to Msaver, First Horizon Insurance, and Highland Capital.


CONSOLIDATED SUMMARY RESULTS
Quarterly, Unaudited


																1Q12 Change vs.
(Dollars in thousands, except per share data)	1Q12			4Q11			3Q11			2Q11			1Q11			4Q11		1Q11
Income Statement Highlights
Net interest income	$	171,929		$	178,877		$	176,340		$	172,860		$	172,755			(4)%		*
Noninterest income		202,113			180,993			185,725			187,592			195,537			12%		3%
Securities gains/(losses), net		328			203			35,162			1			798			NM		NM
Total revenue		374,370			360,073			397,227			360,453			369,090			4%		1%
Noninterest expense		321,994			312,036			322,708			344,455			313,796			3%		3%
Provision for loan losses		8,000			10,000			32,000			1,000			1,000			(20)%		NM
Income before income taxes		44,376			38,037			42,519			14,998			54,294			17%		(18)%
Provision/(benefit) for income taxes		10,570			(526	)		8,367			(4,167	)		12,162			NM		(13)%
Income from continuing operations		33,806			38,563			34,152			19,165			42,132			(12)%		(20)%
Income/(loss) from discontinued operations, net of tax		(435	)		(752	)		4,828			3,671			871			42%		NM
Net income		33,371			37,811			38,980			22,836			43,003			(12)%		(22)%
Net income attributable to noncontrolling interest		2,844			2,871			2,875			2,844			2,844			(1)%		*
Net income/(loss) available to common shareholders	$	30,527		$	34,940		$	36,105		$	19,992		$	40,159			(13)%		(24)%
Common Stock Data
Diluted EPS from continuing operations	$	0.12		$	0.13		$	0.12		$	0.06		$	0.15			(8)%		(20)%
Diluted EPS		0.12			0.13			0.14			0.08			0.15			(8)%		(20)%
Diluted shares		255,369			260,372			262,803			262,756			265,556			(2)%		(4)%
Period-end shares outstanding		252,667			257,468			263,619			263,699			263,335			(2)%		(4)%
Cash dividends declared per share	$	0.01		$	0.01		$	0.01		$	0.01		$	0.01
Balance Sheet Highlights (Period-End)
Total loans, net of unearned income (Restricted - $ .2 billion) (a)	$	15,971,330		$	16,397,127		$	16,241,402		$	16,061,646		$	15,972,372			(3)%		*
Total deposits		16,935,170			16,213,009			15,698,255			15,896,027			15,350,967			4%		10%
Total assets (Restricted - $ .2 billion) (a)		25,678,969			24,789,384			25,571,469			25,054,066			24,438,344			4%		5%
Total liabilities (Restricted - $ .2 billion) (a)		23,004,796			22,104,747			22,828,239			22,372,684			21,798,287			4%		6%
Total equity		2,674,173			2,684,637			2,743,230			2,681,382			2,640,057			*		1%
Asset Quality Highlights
Allowance for loan losses (Restricted - $ 10.4 million) (a)	$	346,016		$	384,351		$	449,645		$	524,091		$	589,128			(10)%		(41)%
Allowance / period-end loans		2.17	%		2.34	%		2.77	%		3.26	%		3.69	%
Net charge-offs	$	46,335		$	75,294		$	106,446		$	66,037		$	76,671			(38)%		(40)%
Net charge-offs (annualized) / average loans		1.16	%		1.84	%		2.65	%		1.67	%		1.93	%
Non-performing assets (NPA)	$	527,149		$	521,161		$	582,572		$	747,860		$	818,969			1%		(36)%
NPA % (b)		2.66	%		2.57	%		3.02	%		4.09	%		4.55	%
Key Ratios & Other
Return on average assets (annualized) (c)		0.53	%		0.60	%		0.62	%		0.37	%		0.71	%
Return on average common equity (annualized) (d)		5.15	%		5.69	%		5.90	%		3.36	%		6.82	%
Net interest margin (e) (f)		3.12	%		3.23	%		3.23	%		3.20	%		3.22	%
Fee income to total revenue (g)		54.03	%		50.29	%		51.30	%		52.04	%		53.09	%
Efficiency ratio (h)		86.08	%		86.71	%		89.13	%		95.56	%		85.20	%
Book value per common share	$	9.42		$	9.28		$	9.29		$	9.05		$	8.90
Tangible book value per common share (f)	$	8.78		$	8.66		$	8.68		$	8.43		$	8.21
Adjusted tangible common equity to risk weighted assets (f)		10.79	%		10.73	%		11.09	%		11.05	%		10.84	%
Full time equivalent employees		4,597			4,728			4,748			4,950			5,159			(3)%		(11)%

NM - Not meaningful

* Amount is less than one percent.

(a)	Restricted balances parenthetically presented are as of March 31, 2012.

(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


														1Q12 Change vs.
(Thousands)	1Q12			4Q11			3Q11		2Q11			1Q11		4Q11		1Q11

Interest income	$	201,503		$	209,715		$	208,360	$	206,757		$	207,605		(4)%		(3)%
Less: interest expense		29,574			30,838			32,020		33,897			34,850		(4)%		(15)%
Net interest income		171,929			178,877			176,340		172,860			172,755		(4)%		*
Provision for loan losses (a)		8,000			10,000			32,000		1,000			1,000		(20)%		NM
Net interest income after provision for loan losses		163,929			168,877			144,340		171,860			171,755		(3)%		(5)%
Noninterest income:
Capital markets		106,743			87,756			99,557		77,921			90,057		22%		19%
Mortgage banking		23,341			18,008			12,751		32,101			27,726		30%		(16)%
Deposit transactions and cash management (b)		28,741			31,349			35,701		34,726			32,279		(8)%		(11)%
Trust services and investment management		5,808			5,822			6,086		6,684			6,360		*		(9)%
Brokerage management fees and commissions		8,496			7,572			9,576		7,662			8,155		12%		4%
Insurance commissions		568			1,399			739		764			689		(59)%		(18)%
Securities gains/(losses), net (c)		328			203			35,162		1			798		NM		NM
Gain on divestiture		200			-			-		-			-		NM		NM
Other		28,216			29,087			21,315		27,734			30,271		(3)%		(7)%
Total noninterest income		202,441			181,196			220,887		187,593			196,335		12%		3%
Adjusted gross income after provision for loan losses		366,370			350,073			365,227		359,453			368,090		5%		*
Noninterest expense:
Employee compensation, incentives, and benefits		175,458			149,013			153,540		151,160			156,512		18%		12%
Repurchase and foreclosure provision		49,256			45,033			52,791		24,563			37,203		9%		32%
Operations services		9,127			10,601			11,978		13,907			13,861		(14)%		(34)%
Occupancy		12,119			12,168			13,523		13,061			14,861		*		(18)%
Legal and professional fees		6,067			12,708			18,132		20,451			18,352		(52)%		(67)%
FDIC premium expense		6,336			5,504			5,904		8,839			8,055		15%		(21)%
Computer software		9,465			9,507			8,689		8,375			8,085		*		17%
Contract employment and outsourcing (d)		11,115			12,514			14,352		8,142			6,888		(11)%		61%
Equipment rentals, depreciation, and maintenance		7,616			7,748			8,795		8,481			7,890		(2)%		(3)%
Foreclosed real estate		4,170			4,793			4,691		5,803			6,789		(13)%		(39)%
Communications and courier		4,499			4,384			4,428		5,069			5,219		3%		(14)%
Miscellaneous loan costs		1,327			1,354			959		859			1,492		(2)%		(11)%
Amortization of intangible assets		973			1,000			1,004		1,006			1,006		(3)%		(3)%
Other (e)		24,466			35,709			23,922		74,739			27,583		(31)%		(11)%
Total noninterest expense		321,994			312,036			322,708		344,455			313,796		3%		3%
Income before income taxes		44,376			38,037			42,519		14,998			54,294		17%		(18)%
Provision/(benefit) for income taxes		10,570			(526	)		8,367		(4,167	)		12,162		NM		(13)%
Income from continuing operations		33,806			38,563			34,152		19,165			42,132		(12)%		(20)%
Income/(loss) from discontinued operations, net of tax (c)		(435	)		(752	)		4,828		3,671			871		42%		NM
Net income		33,371			37,811			38,980		22,836			43,003		(12)%		(22)%
Net income attributable to noncontrolling interest		2,844			2,871			2,875		2,844			2,844		(1)%		*
Net income available to common shareholders	$	30,527		$	34,940		$	36,105	$	19,992		$	40,159		(13)%		(24)%

NM	- Not meaningful

* Amount is less than one percent.

Certain

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

(a)	3Q11 includes approximately $36 million of losses on sales of nonperforming loans.

(b)	Fees primarily impacted by the Durbin Amendment which became effective in 4Q11 resulting in lower interchange income.

(c)	3Q11 includes a $35.1 million gain associated with the sale of a portion of Visa Class B Shares.

(d)	3Q11 includes transition costs and elevated base subservicing costs in connection with the transition of servicing to a new mortgage servicer.

(e)	4Q11 includes an $8.3 million increase in derivative liabilities associated with prior sales of Visa shares related to the decline in the conversion ratio for Visa Class B shares.


OTHER INCOME AND OTHER EXPENSE
Quarterly, Unaudited


												1Q12 Change vs.
(Thousands)	1Q12		4Q11		3Q11			2Q11		1Q11		4Q11			1Q11

Other Income
Bank owned life insurance	$	4,772	$	4,764	$	5,116		$	4,920	$	4,815		*			(1	)%
Bankcard income (a)		5,615		7,259		5,258			5,151		4,720		(23	)%		19	%
ATM interchange fees (b)		2,556		2,655		3,709			3,791		3,535		(4	)%		(28	)%
Other service charges		3,293		3,541		2,969			2,819		2,853		(7	)%		15	%
Electronic banking fees		1,706		1,546		1,609			1,536		1,534		10	%		11	%
Letter of credit fees		1,334		1,230		1,407			1,869		1,776		8	%		(25	)%
Deferred compensation(c)		3,119		376		(2,093	)		221		979		NM			NM
Gains on extinguishment of debt		-		-		-			-		5,761		NM			NM
Other (d)		5,821		7,716		3,340			7,427		4,298		(25	)%		35	%
Total	$	28,216	$	29,087	$	21,315		$	27,734	$	30,271		(3	)%		(7	)%

Other Expense
Losses from litigation and regulatory matters	$	153	$	694	$	-		$	38,260	$	2,325		NM			NM
Advertising and public relations		4,250		4,965		4,571			3,558		3,790		(14	)%		12	%
Low income housing expense		4,608		5,974		4,712			4,973		4,697		(23	)%		(2	)%
Other insurance and taxes		3,199		3,395		3,352			3,507		3,467		(6	)%		(8	)%
Travel and entertainment		1,864		2,342		2,075			2,137		1,770		(20	)%		5	%
Customer relations		855		1,301		1,185			1,152		1,270		(34	)%		(33	)%
Employee training and dues		1,092		1,172		1,009			1,342		1,247		(7	)%		(12	)%
Supplies		1,033		953		1,092			792		963		8	%		7	%
Bank examination costs		799		1,127		1,138			1,117		1,118		(29	)%		(29	)%
Loan insurance expense		589		676		744			706		781		(13	)%		(25	)%
Federal services fees		321		342		338			291		464		(6	)%		(31	)%
Other (e)		5,703		12,768		3,706			16,904		5,691		(55	)%		*
Total	$	24,466	$	35,709	$	23,922		$	74,739	$	27,583		(31	)%		(11	)%

NM - Not meaningful

* Amount is less than one percent.

Certain

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

(a)	4Q11 includes $2.0 million related to Visa volume incentives.

(b)	Fees primarily impacted by the Durbin Amendment which became effective in 4Q11 resulting in lower interchange income.

(c)	Amounts driven by market conditions and are mirrored by changes in deferred compensation expense which is included in employee compensation expense.

(d)	1Q12 includes $2.3 million associated with resolution of a legal matter. 4Q11 includes $4.0 million of interest related to a tax refund.

(e)	4Q11 includes an $8.3 million increase in derivative liabilities associated with prior sales of Visa shares related to the decline in the conversion ratio for Visa Class B shares.


CONSOLIDATED PERIOD-END BALANCE SHEET
Quarterly, Unaudited


																1Q12 Change vs.
(Thousands)	1Q12			4Q11			3Q11			2Q11			1Q11			4Q11			1Q11

Assets
Investment securities	$	3,296,603		$	3,066,272		$	3,327,846		$	3,230,477		$	3,085,478			8	%		7	%
Loans held-for-sale		431,905			413,897			386,147			397,931			370,487			4	%		17	%
Loans, net of unearned income (Restricted - $ .2 billion) (a)		15,971,330			16,397,127			16,241,402			16,061,646			15,972,372			(3	)%			*
Federal funds sold and securities purchased under agreements to resell		614,705			443,588			719,400			598,000			527,563			39	%		17	%
Interest-bearing cash (b)		761,098			452,856			358,537			263,441			308,636			68	%		NM
Trading securities		1,238,041			988,217			1,227,197			1,196,380			924,854			25	%		34	%
Total earning assets		22,313,682			21,761,957			22,260,529			21,747,875			21,189,390			3	%		5	%
Cash and due from banks (Restricted - $ 1.7 million) (a)		349,604			384,667			339,895			313,416			337,002			(9	)%		4	%
Capital markets receivables		522,001			164,987			521,198			625,243			595,594			NM			(12	)%
Mortgage servicing rights, net		142,956			144,069			150,803			186,958			207,748			(1	)%		(31	)%
Goodwill		134,242			133,659			133,659			135,683			152,080				*		(12	)%
Other intangible assets, net		25,638			26,243			27,243			28,384			31,545			(2	)%		(19	)%
Premises and equipment, net		314,903			321,253			326,667			330,392			320,871			(2	)%		(2	)%
Real estate acquired by foreclosure (c)		78,947			85,244			91,492			92,662			110,127			(7	)%		(28	)%
Allowance for loan losses (Restricted - $ 10.4 million) (a)		(346,016	)		(384,351	)		(449,645	)		(524,091	)		(589,128	)		(10	)%		(41	)%
Other assets (Restricted - $ 4.5 million) (a)		2,143,012			2,151,656			2,169,628			2,117,544			2,083,115				*		3	%
Total assets (Restricted - $ .2 billion) (a)	$	25,678,969		$	24,789,384		$	25,571,469		$	25,054,066		$	24,438,344			4	%		5	%

Liabilities and Equity
Deposits
Savings	$	6,615,289		$	6,624,405		$	6,467,377		$	6,382,963		$	6,296,533				*		5	%
Other interest-bearing deposits		3,500,445			3,193,697			3,096,621			2,784,787			2,679,437			10	%		31	%
Time deposits		1,142,249			1,173,375			1,210,661			1,277,905			1,336,666			(3	)%		(15	)%
Total interest-bearing core deposits		11,257,983			10,991,477			10,774,659			10,445,655			10,312,636			2	%		9	%
Noninterest-bearing deposits		4,969,597			4,613,014			4,412,375			4,937,103			4,480,413			8	%		11	%
Total core deposits (d)		16,227,580			15,604,491			15,187,034			15,382,758			14,793,049			4	%		10	%
Certificates of deposit $100,000 and more		707,590			608,518			511,221			513,269			557,918			16	%		27	%
Total deposits		16,935,170			16,213,009			15,698,255			15,896,027			15,350,967			4	%		10	%
Federal funds purchased and securities sold under agreements to repurchase		1,801,234			1,887,052			2,101,953			2,005,999			2,125,793			(5	)%		(15	)%
Trading liabilities		567,571			347,285			471,120			498,915			384,250			63	%		48	%
Other short-term borrowings		181,570			172,550			621,998			187,902			237,583			5	%		(24	)%
Term borrowings (Restricted - $ .2 billion) (a)		2,340,706			2,481,660			2,509,804			2,502,517			2,514,754			(6	)%		(7	)%
Capital markets payables		361,018			164,708			509,164			464,993			413,334				NM		(13	)%
Other liabilities		817,527			838,483			915,945			816,331			771,606			(2	)%		6	%
Total liabilities (Restricted - $ .2 billion) (a)		23,004,796			22,104,747			22,828,239			22,372,684			21,798,287			4	%		6	%
Equity
Common stock (e)		157,917			160,918			164,762			164,812			164,584			(2	)%		(4	)%
Capital surplus (e)		1,560,343			1,601,346			1,641,878			1,638,423			1,636,623			(3	)%		(5	)%
Undivided profits		785,361			757,364			724,977			691,490			674,064			4	%		17	%
Accumulated other comprehensive loss, net		(124,613	)		(130,156	)		(83,552	)		(108,508	)		(130,379	)		4	%		4	%
Noncontrolling interest (f)		295,165			295,165			295,165			295,165			295,165				*			*
Total equity		2,674,173			2,684,637			2,743,230			2,681,382			2,640,057				*		1	%
Total liabilities and equity	$	25,678,969		$	24,789,384		$	25,571,469		$	25,054,066		$	24,438,344			4	%		5	%

NM - Not meaningful

* Amount is less than one percent.

(a)	Restricted balances parenthetically presented are as of March 31, 2012.

(b)	Includes excess balances held at Fed.

(c)	1Q12 includes $19.8 million of foreclosed assets related to government insured mortgages.

(d)	1Q12 average core deposits were $15.7 billion.

(e)	Decreases in 1Q12 and 4Q11 relate to shares purchased under the share repurchase program.

(f)	Includes preferred stock of subsidiary.


CONSOLIDATED AVERAGE BALANCE SHEET
Quarterly, Unaudited


																1Q12 Change vs.
(Thousands)	1Q12			4Q11			3Q11			2Q11			1Q11			4Q11		1Q11

Assets:
Earning assets:
Loans, net of unearned income:
Commercial, financial, and industrial (C&I)	$	7,709,856		$	7,740,802		$	7,181,058		$	6,867,893		$	6,823,350			*		13%
Income CRE		1,255,713			1,295,079			1,308,059			1,362,459			1,422,837			(3)%		(12)%
Residential CRE		111,823			132,669			169,049			203,721			249,777			(16)%		(55)%
Consumer real estate		5,290,632			5,295,881			5,346,893			5,436,358			5,549,490			*		(5)%
Permanent mortgage		771,187			814,335			985,359			1,009,804			1,064,893			(5)%		(28)%
Credit card and other		279,150			289,189			292,800			299,904			299,861			(3)%		(7)%
Restricted and secured real estate loans		622,931			654,142			681,469			708,966			741,413			(5)%		(16)%
Total loans, net of unearned income (Restricted - $ .2 billion) (a) (b)		16,041,292			16,222,097			15,964,687			15,889,105			16,151,621			(1)%		(1)%
Loans held-for-sale		424,086			399,271			384,108			366,557			353,384			6%		20%
Investment securities:
U.S. treasuries		40,088			42,935			43,812			62,970			82,197			(7)%		(51)%
U.S. government agencies		2,802,651			2,919,690			2,990,375			2,938,623			2,669,852			(4)%		5%
States and municipalities		18,070			17,681			19,365			23,869			26,015			2%		(31)%
Other		224,000			224,530			221,664			220,440			224,565			*		*
Total investment securities		3,084,809			3,204,836			3,275,216			3,245,902			3,002,629			(4)%		3%
Capital markets securities inventory		1,277,372			1,263,427			1,250,249			1,235,642			1,110,584			1%		15%
Mortgage banking trading securities		25,797			26,927			30,320			32,263			34,549			(4)%		(25)%
Other earning assets:
Federal funds sold and securities purchased under agreements to resell		632,972			641,464			660,048			653,984			581,861			(1)%		9%
Interest-bearing cash (c)		821,113			479,621			403,482			381,586			586,411			71%		40%
Total other earning assets		1,454,085			1,121,085			1,063,530			1,035,570			1,168,272			30%		24%
Total earning assets (Restricted - $ .2 billion) (a)		22,307,441			22,237,643			21,968,110			21,805,039			21,821,039			*		2%
Allowance for loan losses (Restricted - $ 21.1 million) (a)		(372,264	)		(424,774	)		(507,478	)		(567,923	)		(644,107	)		(12)%		(42)%
Cash and due from banks (Restricted - $ 1.6 million) (a)		351,760			337,755			346,100			343,162			351,488			4%		*
Capital markets receivables		91,430			108,815			124,192			112,289			124,395			(16)%		(27)%
Premises and equipment, net		317,621			323,569			328,172			324,584			320,485			(2)%		(1)%
Other assets (Restricted - $ 8.6 million) (a)		2,504,385			2,479,298			2,519,020			2,500,864			2,596,870			1%		(4)%
Total assets (Restricted - $ .1 billion) (a)	$	25,200,373		$	25,062,306		$	24,778,116		$	24,518,015		$	24,570,170			1%		3%

Liabilities and equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Other interest-bearing deposits	$	3,246,658		$	2,991,676		$	2,900,808		$	2,673,090		$	2,662,421			9%		22%
Savings		6,690,470			6,559,779			6,479,880			6,320,779			6,184,409			2%		8%
Time deposits		1,155,716			1,190,464			1,244,602			1,315,764			1,360,180			(3)%		(15)%
Total interest-bearing core deposits		11,092,844			10,741,919			10,625,290			10,309,633			10,207,010			3%		9%
Certificates of deposit $100,000 and more		660,256			544,394			507,086			547,262			560,805			21%		18%
Federal funds purchased and securities sold under agreements to repurchase		2,003,566			2,170,222			2,081,379			2,130,832			2,259,138			(8)%		(11)%
Capital markets trading liabilities		614,084			629,019			626,982			620,726			561,429			(2)%		9%
Other short-term borrowings		182,083			362,579			284,163			340,015			172,601			(50)%		5%
Term borrowings (Restricted - $ .2 billion) (a)		2,457,291			2,506,088			2,491,227			2,499,794			2,838,034			(2)%		(13)%
Total interest-bearing liabilities		17,010,124			16,954,221			16,616,127			16,448,262			16,599,017			*		2%
Noninterest-bearing deposits		4,623,457			4,519,590			4,546,876			4,574,342			4,414,758			2%		5%
Capital markets payables		71,180			68,662			102,831			79,463			79,389			4%		(10)%
Other liabilities		814,417			785,356			789,190			735,786			795,176			4%		2%
Equity		2,681,195			2,734,477			2,723,092			2,680,162			2,681,830			(2)%		*
Total liabilities and equity (Restricted - $ .2 billion) (a)	$	25,200,373		$	25,062,306		$	24,778,116		$	24,518,015		$	24,570,170			1%		3%

NM - Not meaningful

* Amount is less than one percent.

(a)	Restricted balances parenthetically presented are quarterly averages as of March 31, 2012.

(b)	Includes loans on nonaccrual status.

(c)	Includes excess balances held at Fed.


CONSOLIDATED NET INTEREST INCOME (a)
Quarterly, Unaudited


																1Q12 Change vs.
(Thousands)	1Q12			4Q11			3Q11			2Q11			1Q11			4Q11		1Q11

Interest Income:
Loans, net of unearned income (b)	$	163,070		$	169,169		$	163,773		$	162,281		$	164,747			(4)%		(1)%
Loans held-for-sale		3,738			3,859			5,126			3,267			3,657			(3)%		2%
Investment securities:
U.S. treasuries		66			67			66			88			119			(1)%		(44)%
U.S. government agencies		23,768			25,262			27,615			28,643			26,513			(6)%		(10)%
States and municipalities		76			99			115			196			208			(23)%		(63)%
Other		2,422			2,264			2,250			2,391			2,423			7%		*
Total investment securities		26,332			27,692			30,046			31,318			29,263			(5)%		(10)%
Capital markets securities inventory		8,934			9,789			10,141			10,479			10,027			(9)%		(11)%
Mortgage banking trading securities		642			675			706			820			889			(5)%		(28)%
Other earning assets:
Federal funds sold and securities purchased under agreements to resell (c)		-			(32	)		(58	)		(93	)		78			NM		NM
Interest-bearing cash		446			213			180			180			330			NM		35%
Total other earning assets		446			181			122			87			408			NM		9%
Interest income	$	203,162		$	211,365		$	209,914		$	208,252		$	208,991			(4)%		(3)%

Interest Expense:
Interest-bearing deposits:
Other interest-bearing deposits	$	1,518		$	1,407		$	1,650		$	1,638		$	1,552			8%		(2)%
Savings		5,619			5,921			6,773			7,018			7,250			(5)%		(22)%
Time deposits		5,916			6,363			7,096			7,783			8,032			(7)%		(26)%
Total interest-bearing core deposits		13,053			13,691			15,519			16,439			16,834			(5)%		(22)%
Certificates of deposit $100,000 and more		2,306			2,166			2,328			2,612			2,710			6%		(15)%
Federal funds purchased and securities sold under agreements to repurchase		1,223			1,269			1,159			1,237			1,324			(4)%		(8)%
Capital markets trading liabilities		2,515			3,363			3,703			4,102			3,791			(25)%		(34)%
Other short-term borrowings		142			171			229			231			216			(17)%		(34)%
Term borrowings		10,335			10,178			9,081			9,274			9,975			2%		4%
Interest expense		29,574			30,838			32,019			33,895			34,850			(4)%		(15)%
Net interest income-tax equivalent basis		173,588			180,527			177,895			174,357			174,141			(4)%		*
Fully taxable equivalent adjustment		(1,659	)		(1,650	)		(1,555	)		(1,497	)		(1,386	)		(1)%		(20)%
Net interest income	$	171,929		$	178,877		$	176,340		$	172,860		$	172,755			(4)%		*

NM - Not meaningful

* Amount is less than one percent.

(a)	Net interest income adjusted to a fully taxable equivalent (“FTE”) basis.

(b)	Includes loans on nonaccrual status.

(c)	4Q11, 3Q11 and 2Q11 driven by negative market rates on reverse repurchase agreements.

CONSOLIDATED AVERAGE BALANCE SHEET: YIELDS AND RATES

Quarterly, Unaudited


(Thousands)	1Q12			4Q11			3Q11			2Q11			1Q11

Assets:
Earning assets (a):
Loans, net of unearned income:
Commercial loans		3.90	%		3.95	%		3.84	%		3.90	%		3.84	%
Retail loans		4.32			4.42			4.37			4.31			4.42
Total loans, net of unearned income (b)		4.08			4.15			4.08			4.09			4.12
Loans held-for-sale		3.53			3.87			5.34			3.57			4.14
Investment securities:
U.S. treasuries		0.66			0.62			0.60			0.56			0.59
U.S. government agencies		3.39			3.46			3.69			3.90			3.97
States and municipalities		1.68			2.23			2.39			3.29			3.19
Other		4.33			4.03			4.06			4.34			4.32
Total investment securities		3.41			3.46			3.67			3.86			3.90
Capital markets securities inventory		2.80			3.10			3.24			3.39			3.61
Mortgage banking trading securities		9.96			10.03			9.31			10.17			10.29
Other earning assets:
Federal funds sold and securities purchased under agreements to resell (c)		-			(0.02	)		(0.03	)		(0.06	)		0.05
Interest-bearing cash		0.22			0.18			0.18			0.19			0.23
Total other earning assets		0.12			0.06			0.05			0.03			0.14
Interest income / total earning assets		3.65	%		3.78	%		3.80	%		3.83	%		3.86	%

Liabilities:
Interest-bearing liabilities:
Interest-bearing deposits:
Other interest-bearing deposits		0.19	%		0.19	%		0.23	%		0.25	%		0.24	%
Savings		0.34			0.36			0.41			0.45			0.48
Time deposits		2.06			2.12			2.26			2.37			2.39
Total interest-bearing core deposits		0.47			0.51			0.58			0.64			0.67
Certificates of deposit $100,000 and more		1.40			1.58			1.82			1.91			1.96
Federal funds purchased and securities sold under agreements to repurchase		0.25			0.23			0.22			0.23			0.24
Capital markets trading liabilities		1.65			2.12			2.34			2.65			2.74
Other short-term borrowings		0.31			0.19			0.32			0.27			0.51
Term borrowings (d)		1.68			1.63			1.46			1.49			1.41
Interest expense / total interest-bearing liabilities		0.70			0.72			0.77			0.83			0.85
Net interest spread		2.95	%		3.06	%		3.03	%		3.00	%		3.01	%
Effect of interest-free sources used to fund earning assets		0.17			0.17			0.20			0.20			0.21
Net interest margin		3.12	%		3.23	%		3.23	%		3.20	%		3.22	%

Yields are adjusted to a fully taxable equivalent (“FTE”) basis. 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)	Earning assets yields are expressed net of unearned income.

(b)	Includes loans on nonaccrual status.

(c)	4Q11, 3Q11 and 2Q11 driven by negative market rates on reverse repurchase agreements.

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


MORTGAGE SERVICING RIGHTS
Quarterly, Unaudited


																1Q12 Change vs.
(Thousands)		1Q12			4Q11			3Q11			2Q11			1Q11			4Q11	1Q11

First Liens
Fair value beginning balance	$	140,724		$	147,431		$	183,530		$	204,257		$	203,812
Reductions due to loan payments		(5,499	)		(3,567	)		(5,286	)		(5,522	)		(7,163	)
Reductions due to exercise of cleanup calls		-			-			-			(195	)		-
Changes in fair value due to:
Changes in valuation model inputs or assumptions (a)		4,459			(3,140	)		(30,813	)		(15,010	)		7,592
Other changes in fair value		(8	)		-			-			-			16
Fair value ending balance	$	139,676		$	140,724		$	147,431		$	183,530		$	204,257			(1)%	(32)%

Second Liens
Fair value beginning balance	$	231		$	241		$	251		$	259		$	262
Reductions due to loan payments		(9	)		(10	)		(10	)		(8	)		(13	)
Changes in fair value due to:
Other changes in fair value		-			-			-			-			10
Fair value ending balance	$	222		$	231		$	241		$	251		$	259			(4)%	(14)%

HELOC
Fair value beginning balance	$	3,114		$	3,131		$	3,177		$	3,232		$	3,245
Reductions due to loan payments		(76	)		(54	)		(59	)		(59	)		(42	)
Changes in fair value due to:
Other changes in fair value		20			37			13			4			29
Fair value ending balance	$	3,058		$	3,114		$	3,131		$	3,177		$	3,232			(2)%	(5)%

Total Consolidated
Fair value beginning balance	$	144,069		$	150,803		$	186,958		$	207,748		$	207,319
Reductions due to loan payments		(5,584	)		(3,631	)		(5,355	)		(5,589	)		(7,218	)
Reductions due to exercise of cleanup calls		-			-			-			(195	)		-
Changes in fair value due to:
Changes in valuation model inputs or assumptions (a)		4,459			(3,140	)		(30,813	)		(15,010	)		7,592
Other changes in fair value		12			37			13			4			55
Fair value ending balance	$	142,956		$	144,069		$	150,803		$	186,958		$	207,748			(1)%	(31)%

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

BUSINESS SEGMENT HIGHLIGHTS

Quarterly, Unaudited


																1Q12 change vs.
(Thousands)		1Q12			4Q11			3Q11			2Q11			1Q11		4Q11	1Q11

Regional Banking
Net interest income	$	146,554		$	150,116		$	140,613		$	136,296		$	134,771		(2)%	9%
Noninterest income		59,901			64,559			68,096			67,853			66,319		(7)%	(10)%
Total revenues		206,455			214,675			208,709			204,149			201,090		(4)%	3%
Provision for loan losses		(7,426	)		(12,655	)		(22,698	)		(13,748	)		(12,404	)	41%	40%
Noninterest expense		139,359			136,428			137,294			143,346			147,794		2%	(6)%
Income before income taxes		74,522			90,902			94,113			74,551			65,700		(18)%	13%
Provision for income taxes		27,199			33,487			34,799			27,349			24,051		(19)%	13%
Net income	$	47,323		$	57,415		$	59,314		$	47,202		$	41,649		(18)%	14%

Capital Markets
Net interest income	$	5,684		$	5,527		$	5,552		$	5,509		$	5,503		3%	3%
Noninterest income		106,775			88,230			99,505			77,925			90,080		21%	19%
Total revenues		112,459			93,757			105,057			83,434			95,583		20%	18%
Noninterest expense (a)		80,302			66,721			77,168			103,383			73,563		20%	9%
Income/(loss) before income taxes		32,157			27,036			27,889			(19,949	)		22,020		19%	46%
Provision/(benefit) for income taxes		12,240			10,302			10,656			(7,756	)		8,406		19%	46%
Net income/(loss)	$	19,917		$	16,734		$	17,233		$	(12,193	)	$	13,614		19%	46%

Corporate
Net interest income/(expense)	$	(4,727	)	$	(3,764	)	$	(494	)	$	412		$	(332	)	(26)%	NM
Noninterest income		9,266			9,865			37,914			8,850			12,708		(6)%	(27)%
Total revenues		4,539			6,101			37,420			9,262			12,376		(26)%	(63)%
Noninterest expense		22,521			29,244			19,011			36,281			20,665		(23)%	9%
Income/(loss) before income taxes		(17,982	)		(23,143	)		18,409			(27,019	)		(8,289	)	22%	NM
Provision/(benefit) for income taxes		(11,805	)		(22,464	)		600			(18,914	)		(10,617	)	47%	(11)%
Net income/(loss)	$	(6,177	)	$	(679	)	$	17,809		$	(8,105	)	$	2,328		NM	NM

Non-Strategic
Net interest income	$	24,418		$	26,998		$	30,669		$	30,643		$	32,813		(10)%	(26)%
Noninterest income		26,499			18,542			15,372			32,965			27,228		43%	(3)%
Total revenues		50,917			45,540			46,041			63,608			60,041		12%	(15)%
Provision for loan losses		15,426			22,655			54,698			14,748			13,404		(32)%	15%
Noninterest expense		79,812			79,643			89,235			61,445			71,774		*	11%
Loss before income taxes		(44,321	)		(56,758	)		(97,892	)		(12,585	)		(25,137	)	22%	(76)%
Benefit for income taxes		(17,064	)		(21,851	)		(37,688	)		(4,846	)		(9,678	)	22%	(76)%
Loss from continuing operations		(27,257	)		(34,907	)		(60,204	)		(7,739	)		(15,459	)	22%	(76)%
Income/(loss) from discontinued operations, net of tax		(435	)		(752	)		4,828			3,671			871		42%	NM
Net loss	$	(27,692	)	$	(35,659	)	$	(55,376	)	$	(4,068	)	$	(14,588	)	22%	(90)%

Total Consolidated
Net interest income	$	171,929		$	178,877		$	176,340		$	172,860		$	172,755		(4)%	*
Noninterest income		202,441			181,196			220,887			187,593			196,335		12%	3%
Total revenues		374,370			360,073			397,227			360,453			369,090		4%	1%
Provision for loan losses		8,000			10,000			32,000			1,000			1,000		(20)%	NM
Noninterest expense		321,994			312,036			322,708			344,455			313,796		3%	3%
Income before income taxes		44,376			38,037			42,519			14,998			54,294		17%	(18)%
Provision/(benefit) for income taxes		10,570			(526	)		8,367			(4,167	)		12,162		NM	(13)%
Income from continuing operations		33,806			38,563			34,152			19,165			42,132		(12)%	(20)%
Income/(loss) from discontinued operations, net of tax		(435	)		(752	)		4,828			3,671			871		42%	NM
Net income	$	33,371		$	37,811		$	38,980		$	22,836		$	43,003		(12)%	(22)%

NM - Not meaningful

*	Amount is less than one percent.

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

(a)	2Q11 includes $36.7 million associated with a litigation settlement.

REGIONAL BANKING

Quarterly, Unaudited


																1Q12 Change vs.
		1Q12			4Q11			3Q11			2Q11			1Q11		4Q11	1Q11

Income Statement (thousands)
Net interest income	$	146,554		$	150,116		$	140,613		$	136,296		$	134,771		(2)%	9%
Provision for loan losses		(7,426	)		(12,655	)		(22,698	)		(13,748	)		(12,404	)	41%	40%
Noninterest income		59,901			64,559			68,096			67,853			66,319		(7)%	(10)%
Noninterest expense		139,359			136,428			137,294			143,346			147,794		2%	(6)%
Income before income taxes	$	74,522		$	90,902		$	94,113		$	74,551		$	65,700		(18)%	13%

Efficiency ratio (a)		67.50	%		63.55	%		65.78	%		70.22	%		73.50	%

Balance Sheet (millions)
Average loans	$	11,485		$	11,458		$	10,841		$	10,525		$	10,515		*	9%
Average other earning assets		51			56			58			57			70		(9)%	(27)%
Total average earning assets		11,536			11,514			10,899			10,582			10,585		*	9%
Average core deposits		13,991			13,402			13,078			12,736			12,456		4%	12%
Average other deposits		660			544			507			547			561		21%	18%
Total average deposits		14,651			13,946			13,585			13,283			13,017		5%	13%
Total period-end deposits		15,344			14,470			13,729			13,664			13,236		6%	16%
Total period-end assets		12,282			12,535			12,066			11,413			11,045		(2)%	11%
Net interest margin (b)		5.16	%		5.23	%		5.17	%		5.22	%		5.20	%
Loan yield		3.98			4.01			4.01			4.02			4.04
Deposit average yield		0.39			0.41			0.48			0.54			0.57

Noninterest Income Detail (thousands)
NSF / Overdraft fees (c)	$	11,282		$	13,466		$	14,239		$	13,316		$	11,749		(16)%	(4)%
Cash management fees		8,856			9,339			9,206			9,536			9,132		(5)%	(3)%
Debit card income (d)		2,552			2,523			6,826			6,941			6,414		1%	(60)%
Other		5,952			5,906			5,256			4,738			4,777		1%	25%
Total deposit transactions and cash management		28,642			31,234			35,527			34,531			32,072		(8)%	(11)%
Insurance commissions		562			1,392			732			756			679		(60)%	(17)%
Trust services and investment management		5,824			5,837			6,098			6,714			6,354		*	(8)%
Bankcard income (e)		5,457			7,025			5,025			4,912			4,485		(22)%	22%
Mortgage banking		859			1,389			1,121			947			2,591		(38)%	(67)%
Other service charges		3,725			3,369			3,312			3,359			3,526		11%	6%
Miscellaneous revenue (d)		14,832			14,313			16,281			16,634			16,612		4%	(11)%
Total noninterest income	$	59,901		$	64,559		$	68,096		$	67,853		$	66,319		(7)%	(10)%

Key Statistics
Financial center locations		174			176			176			178			178		(1)%	(2)%
Trust assets-total managed assets (millions) (f)	$	3,472		$	3,345		$	3,296		$	3,421		$	4,756		4%	(27)%
First lien mortgage production (millions)	$	51		$	68		$	54		$	51		$	111		(25)%	(54)%

*	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.

(c)	Linked-quarter decline primarily attributable to seasonality in NSF fee structure.

(d)	Fees impacted by the Durbin amendment which became effective in 4Q11.

(e)	4Q11 includes $2.0 million related to Visa volume incentives.

(f)	Decrease in total managed assets due to the divestiture of Highland Capital in 2Q11.

CAPITAL MARKETS

Quarterly, Unaudited


																1Q12 Change vs.
		1Q12			4Q11			3Q11			2Q11			1Q11		4Q11	1Q11

Income Statement (thousands)
Net interest income	$	5,684		$	5,527		$	5,552		$	5,509		$	5,503		3%	3%
Noninterest income:
Fixed income		98,553			80,741			92,624			71,164			83,194		22%	18%
Other		8,222			7,489			6,881			6,761			6,886		10%	19%
Total noninterest income		106,775			88,230			99,505			77,925			90,080		21%	19%
Noninterest expense (a)		80,302			66,721			77,168			103,383			73,563		20%	9%
Income/(loss) before income taxes	$	32,157		$	27,036		$	27,889		$	(19,949	)	$	22,020		19%	46%

Efficiency ratio (b)		71.41	%		71.16	%		73.45	%		NM			76.96	%
Fixed income average daily revenue	$	1,590		$	1,324		$	1,447		$	1,130		$	1,342		20%	18%

Balance Sheet (millions)
Average trading inventory	$	1,277		$	1,263		$	1,250		$	1,236		$	1,111		1%	15%
Average other earning assets		695			686			689			664			579		1%	20%
Total average earning assets		1,972			1,949			1,939			1,900			1,690		1%	17%
Total period-end assets		2,692			1,905			2,782			2,693			2,268		41%	19%
Net interest margin (c)		1.18	%		1.16	%		1.17	%		1.17	%		1.31	%

NM - Not meaningful

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

(a)	2Q11 includes $36.7 million associated with a litigation settlement.

(b)	Noninterest expense divided by total revenue.

(c)	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


																1Q12 Change vs.
		1Q12			4Q11			3Q11			2Q11			1Q11		4Q11	1Q11

Income Statement (thousands)
Net interest income/(expense)	$	(4,727	)	$	(3,764	)	$	(494	)	$	412		$	(332	)	(26)%	NM
Noninterest income		8,938			9,662			2,767			8,848			11,937		(7)%	(25)%
Securities gains, net (a)		328			203			35,147			2			771		62%	(57)%
Noninterest expense (b)		22,521			29,244			19,011			36,281			20,665		(23)%	9%
Income/(loss) before income taxes	$	(17,982	)	$	(23,143	)	$	18,409		$	(27,019	)	$	(8,289	)	22%	NM

Average Balance Sheet (millions)
Average loans	$	137		$	152		$	170		$	154		$	159		(10)%	(14)%
Total earning assets	$	4,022		$	3,815		$	3,812		$	3,747		$	3,710		5%	8%
Net interest margin (c)		(.49	)%		(.36	)%		(.01	)%		.04	%		(.09	)%

NM - Not meaningful

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

(a)	3Q11 includes a $35.1 million gain associated with the sale of a portion of Visa Class B Shares.

(b)	4Q11 includes an $8.3 million increase in derivative liabilities associated with prior sales of Visa shares related to the decline in the conversion ratio for Visa Class B shares.

(c)	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


																1Q12 Change vs.
		1Q12			4Q11			3Q11			2Q11			1Q11		4Q11	1Q11

Income Statement (thousands)
Net interest income	$	24,418		$	26,998		$	30,669		$	30,643		$	32,813		(10)%	(26)%
Noninterest income:
Mortgage warehouse valuation		1,640			265			(7,084	)		1,820			(1,316	)	NM	NM
Service fees		17,202			13,368			16,731			19,248			20,827		29%	(17)%
Change in MSR value-runoff		(5,498	)		(3,567	)		(5,286	)		(5,526	)		(7,164	)	54%	(23)%
Net hedging results		9,065			5,887			7,033			15,416			12,472		54%	(27)%
Other		4,090			2,589			3,963			2,007			2,383		58%	72%
Total noninterest income		26,499			18,542			15,357			32,965			27,202		43%	(3)%
Securities gains/(losses), net		-			-			15			-			26		NM	NM
Noninterest expense:
Repurchase and foreclosure provision		49,256			45,032			52,791			24,563			37,203		9%	32%
Other expenses		30,556			34,611			36,444			36,882			34,571		(12)%	(12)%
Total noninterest expense		79,812			79,643			89,235			61,445			71,774		*	11%
Provision for loan losses		15,426			22,655			54,698			14,748			13,404		(32)%	15%
Loss before income taxes		(44,321	)		(56,758	)		(97,892	)		(12,585	)		(25,137	)	(22)%	76%

Average Balance Sheet (millions)
Loans	$	4,419		$	4,612		$	4,953		$	5,210		$	5,478		(4)%	(19)%
Loans held-for-sale		316			304			302			303			290		4%	9%
Trading securities		26			27			30			32			35		(4)%	(26)%
Mortgage servicing rights		141			149			174			194			208		(5)%	(32)%
Other assets		336			313			423			364			357		7%	(6)%
Total assets		5,238			5,405			5,882			6,103			6,368		(3)%	(18)%
Net interest margin (a)		2.05	%		2.17	%		2.30	%		2.20	%		2.26	%
Efficiency ratio (b)		156.75	%		174.89	%		193.88	%		96.60	%		119.59	%


Mortgage Warehouse-Period-end (millions)
Ending warehouse balance (loans held-for-sale)	$	323		$	310		$	299		$	307		$	293		4%	10%

Key Servicing Metrics (c)
Ending servicing portfolio (millions) (d)	$	21,610		$	22,749		$	24,101		$	25,223		$	26,452		(5)%	(18)%
Average servicing portfolio (millions) (d)		22,184			23,466			24,562			25,666			26,862		(5)%	(17)%
Average number of loans serviced (d)		128,068			134,490			140,270			146,520			152,083		(5)%	(16)%

Portfolio Product Mix (average) (c)
GNMA		3	%		3	%		3	%		3	%		3	%
FNMA/FHLMC		35			35			36			36			36
Private		57			57			57			57			57
Sub-total		95			95			96			96			96
FHN permanent mortgage portfolio and warehouse		5			5			4			4			4
Total		100	%		100	%		100	%		100	%		100	%

Other Portfolio Statistics
Weighted average base servicing fee-legacy mortgage banking (e)		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) (f)	$	293.33		$	295.20		$	223.03		$	135.34		$	121.47

Servicing book value (bps) (g) (h)		68			68			75			79			80

90+ delinquency rate, excluding foreclosures (i)		11.54	%		12.11	%		12.47	%		11.35	%		11.57	%

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).

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

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

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

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

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

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

(i)	Excludes delinquent second liens and HELOCs.

CAPITAL HIGHLIGHTS

Quarterly, Unaudited


																1Q12 Change vs.
(Dollars in thousands, except per share amounts)		1Q12			4Q11			3Q11			2Q11			1Q11		4Q11	1Q11

Tier 1 capital (a) (b)	$	2,834,974		$	2,850,452		$	2,875,113		$	2,818,535		$	2,790,335		(1)%	2%
Tier 2 capital (a)		689,496			751,819			751,227			748,225			868,792		(8)%	(21)%
Total capital (a)	$	3,524,470		$	3,602,271		$	3,626,340		$	3,566,760		$	3,659,127		(2)%	(4)%

Risk weighted assets (“RWA”) (a)	$	19,942,650		$	20,026,412		$	19,910,843		$	19,589,310		$	19,569,006		*	2%
Tier 1 ratio (a)		14.22	%		14.23	%		14.44	%		14.39	%		14.26	%
Tier 2 ratio (a)		3.45	%		3.76	%		3.77	%		3.82	%		4.44	%
Total capital ratio (a)		17.67	%		17.99	%		18.21	%		18.21	%		18.70	%

Tier 1 common ratio (a) (c)		11.73	%		11.76	%		11.95	%		11.86	%		11.73	%
Leverage ratio (a)		11.29			11.41			11.65			11.54			11.39
Total equity to total assets		10.41			10.83			10.73			10.70			10.80
Adjusted tangible common equity to risk weighted assets (“TCE/RWA”) (a) (c) (e)		10.79			10.80			11.09			11.05			10.84
Tangible common equity/tangible assets (“TCE/TA”) (c) (d)		8.70			9.05			9.00			8.93			8.91

*	Amount is less than one percent.

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

(a)	Current quarter is an estimate.

(b)	All quarters presented include $200 million of tier 1 qualifying trust preferred securities.

(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


																1Q12 Changes vs.
(Thousands)		1Q12			4Q11			3Q11			2Q11			1Q11		4Q11		1Q11

Allowance for Loan Losses Walk-Forward
Beginning reserve	$	384,351		$	449,645		$	524,091		$	589,128		$	664,799		(15)%		(42)%
Provision		8,000			10,000			32,000			1,000			1,000		(20)%		NM
Charge-offs		(57,083	)		(85,918	)		(120,655	)		(83,344	)		(87,352	)	(34)%		(35)%
Recoveries		10,748			10,624			14,209			17,307			10,681		1%		1%
Ending balance (Restricted - $10.4 million) (a)	$	346,016		$	384,351		$	449,645		$	524,091		$	589,128		(10)%		(41)%
Reserve for unfunded commitments		5,358			6,945			9,220			12,522			14,371		(23)%		(63)%
Total allowance for loan losses plus reserve for unfunded commitments	$	351,374		$	391,296		$	458,865		$	536,613		$	603,499		(10)%		(42)%

Allowance for Loan Losses
Regional Banking	$	166,115		$	187,791		$	232,269		$	278,693		$	310,470		(12)%		(46)%
Non-Strategic		179,901			196,560			217,376			245,398			278,658		(8)%		(35)%
Corporate (b)		NM			NM			NM			NM			NM		NM		NM
Total allowance for loan losses	$	346,016		$	384,351		$	449,645		$	524,091		$	589,128		(10)%		(41)%

Nonperforming Assets
Regional Banking
Nonperforming loans	$	199,629		$	199,000		$	239,666		$	283,754		$	317,109		*		(37)%
Foreclosed real estate		18,047			16,563			24,943			28,121			33,134		9%		(46)%
Total Regional Banking	$	217,676		$	215,563		$	264,609		$	311,875		$	350,243		1%		(38)%
Non-Strategic
Nonperforming loans - including held for sale (c)	$	268,181		$	253,069		$	262,645		$	384,174		$	406,305		6%		(34)%
Foreclosed real estate		41,085			52,322			55,111			50,671			61,281		(21)%		(33)%
Total Non-Strategic	$	309,266		$	305,391		$	317,756		$	434,845		$	467,586		1%		(34)%
Corporate
Nonperforming loans	$	207		$	207		$	207		$	1,140		$	1,140		*		(82)%
Total nonperforming assets	$	527,149		$	521,161		$	582,572		$	747,860		$	818,969		1%		(36)%

Net Charge-Offs
Regional Banking (d)	$	14,251		$	31,823		$	23,727		$	18,033		$	26,703		(55)%		(47)%
Non-Strategic		32,084			43,471			82,719			48,004			49,968		(26)%		(36)%
Total net charge-offs	$	46,335		$	75,294		$	106,446		$	66,037		$	76,671		(38)%		(40)%

Consolidated Key Ratios (e)
NPL %		2.30	%		2.16	%		2.55	%		3.62	%		3.99	%
NPA %		2.66			2.57			3.02			4.09			4.55
Net charge-offs %		1.16			1.84			2.65			1.67			1.93
Allowance / loans		2.17			2.34			2.77			3.26			3.69
Allowance / NPL		.94x			1.09x			1.09x			0.90x			0.92x
Allowance / NPA		.81x			0.91x			0.91x			0.79x			0.81x
Allowance / charge-offs		1.87x			1.28x			1.06x			1.98x			1.92x

Other
Loans past due 90 days or more (f)	$	97,672		$	106,425		$	102,420		$	108,923		$	125,989		(8	)%	(22	)%
Guaranteed portion (f)		40,007			42,249			39,572			39,613			37,858		(5	)%	6	%
Foreclosed real estate from government insured loans		19,815			16,360			11,438			13,870			15,711		21	%	26	%
Period-end loans, net of unearned income (millions)		15,971			16,397			16,241			16,062			15,972		(3	)%	*
Remaining unfunded commitments (millions)		7,717			7,435			7,418			7,938			8,285		4	%	(7	)%

NM - Not meaningful

* Amount is less than one percent

(a)	Restricted balances parenthetically presented are as of March 31, 2012. See Glossary of Terms for definition of restricted balances.

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

(c)	1Q12 includes $100.8 million of loans held for sale.

(d)	Linked quarter decline driven by C&I portfolio as 1Q12 includes recoveries of $4.6 million; 4Q11 includes an $11.7 million charge-off associated with one bank holding company loan.

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

(f)	Includes loans held for sale.

ASSET QUALITY: CONSOLIDATED

Quarterly, Unaudited


																	1Q12 Changes vs.
	1Q12			4Q11			3Q11			2Q11			1Q11			4Q11		1Q11

Key Portfolio Details
C&I
Period-end loans ($ millions)	$	7,705		$	8,015		$	7,706		$	7,180		$	6,808			(4)%		13%
30+ Delinq. % (a)		0.39	%		0.15	%		0.43	%		0.52	%		0.46	%
NPL %		2.00			2.02			2.60			2.96			3.13
Charge-offs % (qtr. annualized) (b)		0.08			1.62			0.70			0.35			0.60
Allowance / loans %		1.55	%		1.63	%		2.37	%		2.87	%		3.24	%
Allowance / charge-offs (b)		19.17	x		1.03	x		3.61	x		8.72	x		5.46	x

Income CRE
Period-end loans ($ millions)	$	1,247		$	1,257		$	1,287		$	1,311		$	1,398			(1)%		(11)%
30+ Delinq. % (a)		0.73	%		0.76	%		1.47	%		1.11	%		1.12	%
NPL %		5.59			5.50			6.27			8.54			10.07
Charge-offs % (qtr. annualized)		2.41			0.44			1.40			1.03			2.26
Allowance / loans %		2.64	%		3.15	%		3.67	%		6.04	%		7.05	%
Allowance / charge-offs		1.09	x		6.91	x		2.56	x		5.63	x		3.11	x

Residential CRE
Period-end loans ($ millions)	$	100		$	121		$	142		$	183		$	221			(17)%		(55)%
30+ Delinq. % (a)		1.06	%		0.72	%		0.61	%		5.14	%		5.08	%
NPL %		43.77			37.87			38.80			38.40			42.19
Charge-offs % (qtr. annualized)		5.70			5.96			8.01			8.19			4.96
Allowance / loans %		13.11	%		13.20	%		12.67	%		11.10	%		11.30	%
Allowance / charge-offs		2.07	x		2.00	x		1.31	x		1.22	x		2.05	x

Consumer Real Estate
Period-end loans ($ millions)	$	5,392		$	5,291		$	5,305		$	5,383		$	5,487			2%		(2)%
30+ Delinq. % (a)		1.48	%		1.70	%		1.61	%		1.52	%		1.73	%
NPL % (f)		1.30			0.67			0.80			0.64			0.69
Charge-offs % (qtr. annualized)		1.99			1.85			2.04			2.34			2.50
Allowance / loans %		2.26	%		2.63	%		2.55	%		2.47	%		2.60	%
Allowance / charge-offs		1.16	x		1.41	x		1.23	x		1.05	x		1.04	x

Permanent Mortgage
Period-end loans ($ millions) (c)	$	751		$	788		$	838		$	1,015		$	1,038			(5)%		(28)%
30+ Delinq. % (a)		2.16	%		3.33	%		5.21	%		4.00	%		5.47	%
NPL % (c)		4.40			4.15			2.87			13.53			12.64
Charge-offs % (qtr. annualized) (d)		2.08			2.74			18.83			3.21			3.34
Allowance / loans %		3.62	%		2.55	%		3.12	%		4.28	%		5.04	%
Allowance / charge-offs		1.70	x		0.90	x		0.14	x		1.34	x		1.49	x

Credit Card and Other
Period-end loans ($ millions)	$	271		$	284		$	299		$	295		$	298			(5)%		(9)%
30+ Delinq. % (a)		1.26	%		1.33	%		1.29	%		1.20	%		1.34	%
NPL %		0.79			0.75			1.69			3.21			5.12
Charge-offs % (qtr. annualized)		2.22			5.60			5.27			5.61			4.43
Allowance / loans %		2.27	%		2.49	%		2.84	%		3.08	%		3.36	%
Allowance / charge-offs		1.00	x		0.43	x		0.55	x		0.54	x		0.76	x

Restricted Real Estate Loans and Secured Borrowings
Period-end loans ($ millions) (e)	$	505		$	641		$	666		$	694		$	722			(21)%		(30)%
30+ Delinq. % (a)		3.41	%		3.15	%		2.98	%		2.85	%		2.94	%
NPL % (f)		1.80			1.04			0.87			0.80			0.75
Charge-offs % (qtr. annualized)		2.52			3.63			4.46			4.76			5.08
Allowance / loans %		5.04	%		4.97	%		4.86	%		4.76	%		5.52	%
Allowance / charge-offs		1.63	x		1.33	x		1.06	x		0.98	x		1.07	x

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

(b)	1Q12 includes recoveries of $4.8 million; 4Q11 includes a $20.6 million charge-off associated with one bank-related relationship (TRUP and bank holding company loan).

(c)	3Q11 includes the impact of the sale of $126 million in book value of nonperforming permanent mortgages.

(d)	3Q11 includes $40.2 million of net charge-offs (“NCO”) recognized due to sale of nonperforming mortgages.

(e)	1Q12 includes $467.0 million of consumer real estate loans and $38.0 million of permanent mortgage loans.

(f)	1Q12 includes a portion of the $27.5 million of second liens classified as NPL as a result of regulatory guidance issued in first quarter.

ROLLFORWARDS OF NONPERFORMING LOANS AND ORE INVENTORY

Unaudited


(Millions)	1Q12			4Q11			3Q11			2Q11			1Q11
NPL Rollforward (a)
Beginning NPLs	$	279		$	341		$	404		$	462		$	486
+ Additions		22			17			36			31			46
+ Principal Increase		1			1			2			2			4
- Resolutions and payments		(19	)		(39	)		(54	)		(66	)		(47	)
- Net Charge-offs		(10	)		(37	)		(22	)		(15	)		(22	)
- Transfer to OREO		(3	)		(3	)		(10	)		(5	)		(3	)
- Upgrade to Accrual		-			(1	)		(15	)		(5	)		(2	)
Ending NPLs	$	270		$	279		$	341		$	404		$	462
(a) Includes Commercial and One-Time Close Portfolios only.

(Millions)	1Q12			4Q11			3Q11			2Q11			1Q11
ORE Inventory Rollforward (b)
Beginning balance	$	68.9		$	80.1		$	78.8		$	94.4		$	110.5
Valuation adjustments		(5.2	)		(4.4	)		(4.3	)		(4.6	)		(5.0	)
Adjusted balance	$	63.7		$	75.7		$	74.5		$	89.8		$	105.5
+ New OREO		10.2			13.9			17.0			17.0			16.1
+ Capitalized expenses		0.2			0.2			0.5			1.0			0.6
Disposals:
- Single transactions		(13.7	)		(20.7	)		(10.2	)		(24.7	)		(27.4	)
- Bulk sales		(1.3	)		(0.2	)		(1.7	)		(4.3	)		-
- Auctions		-			-			-			-			(0.4	)
Ending balance	$	59.1		$	68.9		$	80.1		$	78.8		$	94.4

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

ASSET QUALITY: REGIONAL BANKING

Quarterly, Unaudited


																1Q12 Changes vs.
		1Q12			4Q11			3Q11			2Q11			1Q11		4Q11	1Q11

Total Regional Banking
Period-end loans ($ millions)	$	11,530		$	11,753		$	11,374		$	10,828		$	10,482		(2)%	10%
30+ Delinq. % (a)		0.60	%		0.41	%		0.61	%		0.82	%		0.84	%
NPL %		1.66			1.69			2.11			2.62			3.03
Charge-offs % (qtr. annualized)		0.50			1.10			0.87			0.69			1.03
Allowance / loans %		1.44	%		1.60	%		2.04	%		2.57	%		2.96	%
Allowance / charge-offs		2.91x			1.48x			2.45x			3.86x			2.91x

Key Portfolio Details
C&I
Period-end loans ($ millions)	$	7,160		$	7,465		$	7,139		$	6,600		$	6,223		(4)%	15%
30+ Delinq. % (a)		0.41	%		0.16	%		0.45	%		0.56	%		0.48	%
NPL %		1.12			1.18			1.62			1.99			2.39
Charge-offs % (qtr. annualized) (b)		0.09			1.26			0.73			0.39			0.66
Allowance / loans %		1.29	%		1.36	%		1.95	%		2.43	%		2.77	%
Allowance / charge-offs (b)		14.86x			1.11x			2.87x			6.61x			4.27x

Income CRE
Period-end loans ($ millions)	$	1,204		$	1,208		$	1,235		$	1,245		$	1,278		*	(6)%
30+ Delinq. % (a)		0.76	%		0.43	%		0.63	%		1.17	%		1.23	%
NPL %		5.28			5.08			5.75			7.76			8.04
Charge-offs % (qtr. annualized)		1.88			0.40			1.17			0.91			1.94
Allowance / loans %		2.42	%		2.95	%		3.49	%		5.88	%		6.93	%
Allowance / charge-offs		1.29x			7.03x			2.94x			6.39x			3.59x

Residential CRE
Period-end loans ($ millions)	$	86		$	93		$	103		$	124		$	142		(8)%	(39)%
30+ Delinq. % (a)		1.22	%		0.40	%		0.56	%		6.87	%		7.35	%
NPL %		41.83			40.28			36.74			35.22			36.09
Charge-offs % (qtr. annualized)		6.64			7.38			4.91			7.64			5.61
Allowance / loans %		14.07	%		14.33	%		14.27	%		12.62	%		13.51	%
Allowance / charge-offs		2.02x			1.80x			2.54x			1.55x			2.19x

Consumer Real Estate
Period-end loans ($ millions)	$	2,809		$	2,706		$	2,604		$	2,571		$	2,554		4%	10%
30+ Delinq. % (a)		0.92	%		1.02	%		0.99	%		0.96	%		1.07	%
NPL % (c)		0.71			0.45			0.57			0.48			0.54
Charge-offs % (qtr. annualized)		0.57			0.55			0.61			0.63			1.05
Allowance / loans %		0.94	%		1.15	%		1.09	%		0.88	%		0.91	%
Allowance / charge-offs		1.67x			2.12x			1.79x			1.40x			0.88x

Credit Card, Permanent Mortgage, and Other
Period-end loans ($ millions)	$	271		$	281		$	293		$	288		$	285		(4)%	(5)%
30+ Delinq. % (a)		1.40	%		1.30	%		1.19	%		1.23	%		1.57	%
NPL %		0.03			0.02			0.03			0.12			0.12
Charge-offs % (qtr. annualized)		2.38			3.08			3.52			3.52			2.34
Allowance / loans %		2.20	%		2.27	%		2.40	%		2.41	%		2.51	%
Allowance / charge-offs		0.91x			0.72x			0.69x			0.68x			1.08x

ASSET QUALITY: CORPORATE

Permanent Mortgage
Period-end loans ($ millions)	$	127		$	141		$	161		$	175		$	151		(10)%	(16)%
30+ Delinq. % (a)		1.33	%		0.67	%		0.73	%		2.03	%		1.98	%
NPL %		0.16			0.15			0.13			0.65			0.76
Charge-offs % (qtr. annualized)		NM			NM			NM			NM			NM
Allowance / loans %		NM			NM			NM			NM			NM
Allowance / charge-offs		NM			NM			NM			NM			NM

NM - Not meaningful

* Amount is less than one percent

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

(b) 1Q12 includes recoveries of $4.6 million; 4Q11 includes an $11.7 million charge-off associated with one bank holding company loan.

(c) 1Q12 includes a portion of the $27.5 million of second liens classified as NPL as a result of regulatory guidance issued in first quarter.

ASSET QUALITY: NON-STRATEGIC

Quarterly, Unaudited


																1Q12 Changes vs.
		1Q12			4Q11			3Q11			2Q11			1Q11		4Q11		1Q11

Total Non-Strategic
Period-end loans ($ millions)	$	4,314		$	4,503		$	4,706		$	5,059		$	5,339		(4	)%	(19	)%
30+ Delinq. % (a)		2.00	%		2.52	%		2.87	%		2.27	%		2.69	%
NPL %		3.44			3.44			3.69			5.86			5.97
Charge-offs % (qtr. annualized)		2.92			3.74			6.62			3.70			3.70
Allowance / loans %		4.17	%		4.37	%		4.62	%		4.85	%		5.22	%
Allowance / charge-offs		1.40x			1.13x			0.66x			1.28x			1.39x

Key Portfolio Details
C&I (b)
Period-end loans ($ millions)	$	546		$	549		$	567		$	580		$	585		(1	)%	(7	)%
30+ Delinq. % (a)		0.12	%		-	%		0.18	%		-	%		0.17	%
NPL %		13.58			13.50			14.93			13.99			11.04
Charge-offs % (qtr. annualized) (c)		NM			6.15			0.37			NM			0.01
Allowance / loans %		4.94	%		5.29	%		7.66	%		7.95	%		8.26	%
Allowance / charge-offs		NM			0.84x			20.25x			NM			NM

Income CRE
Period-end loans ($ millions)	$	43		$	49		$	52		$	66		$	120		(12	)%	(64	)%
30+ Delinq. % (a)		-	%		8.84	%		21.51	%		-	%		-	%
NPL %		14.45			15.93			18.80			23.20			31.62
Charge-offs % (qtr. annualized)		15.96			1.29			6.29			2.64			5.44
Allowance / loans %		9.00	%		8.08	%		7.82	%		9.01	%		8.29	%
Allowance / charge-offs		0.51x			6.04x			1.08x			2.30x			1.42x

Residential CRE
Period-end loans ($ millions)	$	13		$	28		$	38		$	59		$	79		(54	)%	(84	)%
30+ Delinq. % (a)		-	%		1.79	%		0.76	%		1.49	%		0.98	%
NPL %		56.20			29.77			44.39			45.06			53.26
Charge-offs % (qtr. annualized)		1.59			1.70			15.10			9.22			3.81
Allowance / loans %		6.96	%		9.40	%		8.33	%		7.90	%		7.28	%
Allowance / charge-offs		2.83x			4.61x			0.41x			0.71x			1.67x

Consumer Real Estate
Period-end loans ($ millions) (d)	$	2,583		$	2,586		$	2,701		$	2,812		$	2,933		*		(12	)%
30+ Delinq. % (a)		2.09	%		2.41	%		2.21	%		2.03	%		2.30	%
NPL % (h)		1.37			0.90			1.03			0.80			0.82
Charge-offs % (qtr. annualized)		3.53			3.15			3.38			3.86			3.74
Allowance / loans %		3.69	%		4.19	%		3.95	%		3.91	%		4.08	%
Allowance / charge-offs		1.07x			1.29x			1.14x			0.99x			1.08x

Permanent Mortgage
Period-end loans ($ millions) (e)	$	604		$	628		$	657		$	818		$	864		(4	)%	(30	)%
30+ Delinq. % (a)		2.25	%		3.95	%		6.35	%		4.46	%		6.09	%
NPL % (d)		5.43			5.17			3.61			16.64			15.04
Charge-offs % (qtr. annualized) (f)		2.59			3.46			23.31			3.88			4.05
Allowance / loans %		4.45	%		3.17	%		3.94	%		5.24	%		5.99	%
Allowance / charge-offs		1.68x			0.89x			0.14x			1.33x			1.48x

Other Consumer
Period-end loans ($ millions)	$	20		$	22		$	25		$	30		$	36		(9	)%	(44	)%
30+ Delinq. % (a)		3.04	%		2.85	%		4.32	%		2.07	%		1.92	%
NPL %		10.39			9.83			20.12			31.24			42.03
Charge-offs % (qtr. annualized)		NM			30.70			19.63			19.98			18.01
Allowance / loans %		2.68	%		3.98	%		6.98	%		9.27	%		9.53	%
Allowance / charge-offs		NM			0.12x			0.32x			0.41x			0.53x

Restricted Real Estate Loans and Secured Borrowings
Period-end loans ($ millions) (g)	$	505		$	641		$	666		$	694		$	722		(21	)%	(30	)%
30+ Delinq. % (a)		3.41	%		3.15	%		2.98	%		2.85	%		2.94	%
NPL % (h)		1.80			1.04			0.87			0.80			0.75
Charge-offs % (qtr. annualized)		2.52			3.63			4.46			4.76			5.08
Allowance / loans %		5.04	%		4.97	%		4.86	%		4.76	%		5.52	%
Allowance / charge-offs		1.63x			1.33x			1.06x			0.98x			1.07x

NM - Not meaningful

* 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 trust preferred loan portfolio and other exited businesses.

(c)	4Q11 includes an $8.9 million charge-off associated with one TRUP loan.

(d)	1Q12 runoff offset by reclassification of loans from “restricted real estate loans” due to FHN’s exercise of cleanup calls related to prior securitizations. This resulted in collapse of the securitization trusts and payoff of the associated borrowings.

(e)	3Q11 includes the impact of the sale of $126 million in book value of nonperforming permanent mortgages.

(f)	3Q11 includes $40.2 million of net charge-offs (“NCO”) recognized due to sale of nonperforming mortgages.

(g)	1Q12 includes $467.0 million of consumer real estate loans and $38.0 million of permanent mortgage loans.

(h)	1Q12 includes a portion of the $27.5 million of second liens classified as NPL as a result of regulatory guidance issued in first quarter.

ASSET QUALITY: PORTFOLIO METRICS

Unaudited

C&I Portfolio: $7.7 Billion (48.2% of Total Loans)


	% OS
General Corporate, Commercial, and Business Banking Loans		79%
Loans to Mortgage Companies		14%
Trust Preferred Loans		5%
Bank Holding Company Loans		2%

Income CRE Portfolio: $1.2 Billion (7.8% of Total Loans)


Top 10 States as of March 31, 2012	% NPL	% OS
Tennessee	4.17%	59%
Georgia	7.07%	7%
North Carolina	12.59%	6%
Florida	14.90%	5%
Mississippi	12.55%	4%
South Carolina	-%	4%
Kentucky	-%	3%
Texas	2.74%	3%
West Virginia	-%	2%
Virginia	0.77%	1%

Consumer Real Estate (primarily Home Equity) Portfolio: $5.9 Billion (36.7% of Total Loans) (a)


Origination LTV and FICO for Portfolio as of March 31, 2012	Loan-to-Value
(excludes whole loan insurance)		<=80%	80% - 90%	>90%
FICO score greater than or equal to 740		33%	16%	7%
FICO score 720-739		6%	4%	2%
FICO score 700-719		6%	4%	2%
FICO score 660-699		7%	4%	3%
FICO score 620-659		2%	1%	1%
FICO score less than 620		1%	-%	1%


Consumer Real Estate Portfolio Detail:
		Origination Characteristics						NCO’s %
Vintage	Balance ($ B)	W/A Age (mo.)	CLTV	FICO	% Broker (b)	% TN	% 1st lien	QTD
pre-2003	$0.2	124	76%	716	16%	45%	33%	1.16%
2003	$0.4	105	75%	729	16%	32%	39%	0.94%
2004	$0.7	92	79%	725	28%	22%	27%	1.83%
2005	$1.0	80	81%	730	19%	17%	16%	3.23%
2006	$0.8	69	78%	734	6%	23%	17%	3.52%
2007	$0.9	57	80%	739	15%	26%	19%	3.96%
2008	$0.4	46	75%	748	8%	73%	51%	0.77%
2009	$0.3	34	72%	753	-%	87%	58%	0.16%
2010	$0.4	20	80%	750	-%	92%	73%	0.03%
2011	$0.6	8	77%	760	-%	90%	86%	-%
2012	$0.2	1	74%	764	-%	90%	92%	-%
Total	$5.9	61	78%	739 (c)	12%	44%	38%	2.05%

(a) Consumer Real Estate portfolio includes $467.0 million of restricted real estate loans and secured borrowings.

(b) Correspondent and Wholesale.

Permanent Mortgage Portfolio: $0.8 Billion (4.9% of Total Loans) (a) (b) (c)


Top 10 States as of March 31, 2012	Del. %		% OS
California		3.74%		25%
Texas		7.09%		9%
Washington		2.33%		8%
Virginia		4.76%		6%
Maryland		2.25%		4%
Arizona		5.29%		4%
Oregon		2.25%		4%
North Carolina		3.11%		3%
Florida		10.36%		3%
Tennessee		4.38%		3%

(a) Permanent Mortgage portfolio includes $38.0 million of restricted real estate loans.

(b) Documentation type: 69% full doc; 26% stated; 5% 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.

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.

Restricted Real Estate Loans and Secured Borrowings: Restricted loans are 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. Line item also includes loans from non consolidated variable interest entities that did not quality for sale treatment. Such loans secure borrowings that are classified as term borrowings.

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)	1Q12			4Q11			3Q11			2Q11			1Q11
Tangible Common Equity (Non-GAAP)
(A) Total equity (GAAP)	$	2,674,173		$	2,684,637		$	2,743,230		$	2,681,382		$	2,640,057
Less: Noncontrolling interest (a)		295,165			295,165			295,165			295,165			295,165
(B) Total common equity	$	2,379,008		$	2,389,472		$	2,448,065		$	2,386,217		$	2,344,892
Less: Intangible assets (GAAP) (b)		159,880			159,902			160,902			164,067			183,625
(C) Tangible common equity (Non-GAAP)	$	2,219,128		$	2,229,570		$	2,287,163		$	2,222,150		$	2,161,267
Less: Unrealized gains on AFS securities, net of tax		67,077			67,069			79,358			58,068			39,338
(D) Adjusted tangible common equity (Non-GAAP) (c)	$	2,152,051		$	2,162,501		$	2,207,805		$	2,164,082		$	2,121,929

Tangible Assets (Non-GAAP)
(E) Total assets (GAAP)	$	25,678,969		$	24,789,384		$	25,571,469		$	25,054,066		$	24,438,344
Less: Intangible assets (GAAP) (b)		159,880			159,902			160,902			164,067			183,625
(F) Tangible assets (Non-GAAP)	$	25,519,089		$	24,629,482		$	25,410,567		$	24,889,999		$	24,254,719

Period-end Shares Outstanding
(G) Period-end shares outstanding		252,667			257,468			263,619			263,699			263,335

Tier 1 Common (Non-GAAP)
(H) Tier 1 capital (d) (e)	$	2,834,974		$	2,850,452		$	2,875,113		$	2,818,535		$	2,790,335
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			200,000			200,000
(I) Tier 1 common (Non-GAAP)	$	2,340,158		$	2,355,636		$	2,380,297		$	2,323,719		$	2,295,519

Risk Weighted Assets
(J) Risk weighted assets (d) (e)	$	19,942,650		$	20,026,412		$	19,910,843		$	19,589,310		$	19,569,006

Ratios
(C)/(F) Tangible common equity to tangible assets (“TCE/TA”) (Non-GAAP)		8.70	%		9.05	%		9.00	%		8.93	%		8.91	%
(A)/(E) Total equity to total assets (GAAP)		10.41	%		10.83	%		10.73	%		10.70	%		10.80	%
(C)/(G) Tangible book value per common share (Non-GAAP)	$	8.78		$	8.66		$	8.68		$	8.43		$	8.21
(B)/(G) Book value per common share (GAAP)	$	9.42		$	9.28		$	9.29		$	9.05		$	8.90
(I)/(J) Tier 1 common ratio (Non-GAAP) (d)		11.73	%		11.76	%		11.95	%		11.86	%		11.73	%
(H)/(E) Tier 1 capital to total assets (GAAP) (d)		11.04	%		11.50	%		11.24	%		11.25	%		11.42	%
(D)/(J) Adjusted tangible common equity to risk weighted assets (“TCE/RWA”) (Non-GAAP) (c) (d)		10.79	%		10.80	%		11.09	%		11.05	%		10.84	%

Net interest income adjusted for impact of fully taxable equivalent (“FTE”) (Non-GAAP)
Regional Banking
Net interest income (GAAP)	$	146,554		$	150,116		$	140,613		$	136,296		$	134,771
FTE adjustment		1,493			1,510			1,434			1,353			1,243
Net interest income adjusted for impact of FTE (Non-GAAP)	$	148,047		$	151,626		$	142,047		$	137,649		$	136,014

Capital Markets
Net interest income (GAAP)	$	5,684		$	5,527		$	5,552		$	5,509		$	5,503
FTE adjustment		140			106			81			76			72
Net interest income adjusted for impact of FTE (Non-GAAP)	$	5,824		$	5,633		$	5,633		$	5,585		$	5,575

Corporate
Net interest income (GAAP)	$	(4,727	)	$	(3,764	)	$	(494	)	$	412		$	(332	)
FTE adjustment		26			34			40			68			71
Net interest income adjusted for impact of FTE (Non-GAAP)	$	(4,701	)	$	(3,730	)	$	(454	)	$	480		$	(261	)

Non-Strategic
Net interest income (GAAP)	$	24,418		$	26,998		$	30,669		$	30,643		$	32,813
FTE adjustment		-			-			-			-			-
Net interest income adjusted for impact of FTE (Non-GAAP)	$	24,418		$	26,998		$	30,669		$	30,643		$	32,813

Total Consolidated
Net interest income (GAAP)	$	171,929		$	178,877		$	176,340		$	172,860		$	172,755
FTE adjustment		1,659			1,650			1,555			1,497			1,386
Net interest income adjusted for impact of FTE (Non-GAAP)	$	173,588		$	180,527		$	177,895		$	174,357		$	174,141

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.

First Horizon National Corporation

First Quarter 2012 Earnings

April 19, 2012

Portions of this presentation use non-GAAP financial information. Each of those portions is so noted, and a

reconciliation

that

non-GAAP

information

comparable

GAAP

information

provided

footnote

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

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

detail

the

most

current

10-Q

and

10-K.

FHN

disclaims

any

obligation

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.

Successful Execution:

1Q12 Accomplishments

Optimize

Business Mix for

Profitability &

Returns

Improve

Productivity

& Efficiency

Executing $139mm of cost saves in Core Businesses

Regional Banking expenses down 6%

Regional Banking revenue per FTE of $65k, up 13% from $58k

Tier 1 ratio at 14.2%, down 4bps

Tier 1 Common flat at 11.7%

TCE/TA at 8.7%

Repurchased $89mm of common stock since October 2011

10.9 million shares at a volume weighted average price of $8.11 per share

Core Businesses’

pre-tax income at $89mm, up 12%

Core Businesses’

pre-tax pre-provision income at $81mm, up 21%

Regional Banking average loans up 9%

Regional Banking average deposits up 13%

Capital Markets’

remained strong due to our unique business model and extensive

distribution network

Fixed income average daily revenues at $1.6mm

Non-Strategic average loans decreased 19%

Net charge-offs declined 40%

Nonperforming loans down 35%

Deploy Capital

In Disciplined

Manner

Core Businesses include Regional Banking, Capital Markets, and Corporate segments.

Core Businesses pre-tax and pre-tax, pre-provision income are non-GAAP numbers and reconciliations are provided on slide 6 and in the appendix, respectively.

Tier 1 and Tier 1 Common: current quarter is estimate; Tier 1 Common and TCE, & TA are non-GAAP numbers, and a reconciliation is provided in the appendix.

Does not include $0.03 broker commission paid.

All data is 1Q12 compared to 1Q11 unless otherwise noted. ¹

FINANCIAL RESULTS

Consolidated Financial Results

Net income available to common shareholders of

$31mm, with diluted EPS of $0.12

Total revenues up 4% at $374mm

Regional Banking revenues down 4%

NII down 2% from lower loan volume

Fee income declined 7% from seasonal impact of

lower NSF fees

Capital Markets revenues up 20%

Fixed income ADR up 20%

Total expenses up 3% at $322mm

Regional Banking expenses up 2% driven by higher

benefits and pension costs

Capital Markets expenses up 20% due to higher

variable compensation from increased revenues

Non-Strategic expenses flat linked quarter

$49mm of mortgage repurchase expense

vs $45mm

Total provision at $8mm

Net charge-offs at $46mm, down 38%

All data is 1Q12 compared to 4Q11 unless otherwise noted.

Linked Quarter Comparison

NII

$173

$179

$172

Noninterest income

$196

$181

$202

Securities gains / (losses), net

Total revenue

$369

$360

$374

Noninterest expense

$314

$312

$322

Provision

$10

Pre-tax income

$54

$38

$44

Taxes

$12

($1)

$11

Continuing operations

$42

$39

$34

Discontinued operations

($1)

($0)

Net income

$43

$38

$33

Net income attributable to

noncontrolling interest

Net income available

to common shareholders

$40

$35

$31

Diluted shares

266

260

255

Diluted EPS from continuing

operations

$0.15

$0.13

$0.12

Diluted EPS

$0.15

$0.13

$0.12

1Q12

(in millions, except per share)

4Q11

1Q11

Core businesses include Regional Banking, Capital Markets, and Corporate segments. Core Businesses pre-tax income is a non-GAAP number and a reconciliation is provided on slide 6.

Numbers may not add to total due to rounding.

First Quarter 2012 Segment Highlights

Numbers may not add to total due to rounding.

Pre-tax earnings, Revenue, and Expense are in millions.

Revenue includes securities gain / losses.

1Q12 Drivers / Impacts

1Q12 Revenue

1Q12 Expense

Pre-Tax Earnings ($mm)

Linked Quarter

Change

$mm / Percent

Regional

Banking

Capital

Markets

Corporate

Non-Strategic

$206

$139

$112

$80

$23

$51

$80

Core Business

(subtotal)

Total

$323

$242

$374

$322

$(8) / (4)%

$19 / 20%

$(2) / (26)%

$5 / 12%

$9 / 3%

$14 / 4%

$3 / 2%

$14 / 20%

$(7) / (23)%

$10 / 4%

$0 / 0%

$10 / 3%

4Q11

$91

$27

$(23)

$95

$(57)

$38

1Q11

$66

$22

$(8)

$79

$(25)

$54

Fixed income average daily revenue of

$1.6mm in 1Q12 vs $1.3mm in 4Q11

Expenses up from increased variable

compensation due to higher revenues

NII down 2% primarily due to lower loan

volume. Fee income down 7% from lower

NSF fees

Provision credit in 1Q12 of $7.4mm vs

provision credit of $12.7mm in 4Q11

1Q12

$75

$32

$(18)

$89

$(44)

$44

Increase to derivative liabilities in 4Q11 of

$8.3mm

Servicing fees of $17.2mm in 1Q12 vs

$13.4mm in 4Q11. Hedging results of

$9.1mm in 1Q12 vs $5.9mm in 4Q11

Loan loss provision of $15.4mm in 1Q12 vs

$22.7mm in 4Q11. Repurchase provision of

$49mm in 1Q12 vs $45mm in 4Q11

Successful Execution: Balance Sheet and NIM

1Q12 total average loans at $16B, down 1%

Regional Banking loans flat

Non-Strategic loans decreased 4%

Average core deposits up 3%

Deposit cost of 47bps vs 51bps

All data is 1Q12 compared to 4Q11 unless otherwise noted. Numbers/percentages may not add due to rounding.

Spread is loan yield minus deposit cost.

Core

Businesses

NIM

non-GAAP

number

relating

the

three

core

businesssegments:

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.

NIM Walkforward

Yields and Rates

500bps

100

200

300

400

1Q11

2Q11

3Q11

4Q11

1Q12

Spread¹

Deposit Cost

Loan Yield

Net Interest Margin By Segment

1Q11

4Q11

1Q12

Regional Banking

5.20%

5.23%

5.16%

Capital Markets

1.31%

1.16%

1.18%

Corporate

-0.09%

-0.36%

-0.49%

Core Businesses

3.56%

3.54%

3.42%

Non-Strategic

2.26%

2.17%

2.05%

First Horizon

3.22%

3.23%

3.12%

345

350

365

361

3.23%

5bps

3bps

2bps

1bp

3.12%

3.0%

3.1%

3.2%

3.3%

Higher

Fed

Balances

Lower

Fixed

Interest

Collected

Nonaccruals

Other

Yields on

Rate Loans

1Q12

4Q11

Successful Execution:

Driving More Value from the Balance Sheet

Average Regional Bank Commercial Loan Pipeline

Regional Bank Commercial Loans Funded

$540mm

Regional Bank Average Commercial Loan Spread

Significant focus to enhance profitability of

balance sheet

Loan pipeline remains solid

Areas of demand include C&I, Corporate, and CRE

Growth in loans to mortgage companies and asset-

based lending

Competitive conditions on pricing and structure are

challenging

Pricing credit for attractive returns on capital

New Loans

2.0%

2.5%

3.0%

3.5%

4.0%

Commercial Loan Portfolio

Paid Off Loans

Peers¹

$500mm

$100

$200

$300

$400

1Q11

4Q11

1Q12

$440

$460

$480

$500

$520

1Q11

4Q11

1Q12

Numbers/percentages may not add due to rounding.

Source: S&P Bilateral Market Trends for newly originated credits. First quarter data is not available at this time. Analysis reflects LIBOR-based facilities over $1mm, and excludes Commercial Real

Improving Productivity and Efficiency

Environmental Costs Remain Elevated

$139mm identified in cost savings, in addition to expected reduction in Non-Strategic expenses over the long-term

$116mm annualized impact in 1Q12 run rate

Divested non-core businesses, reducing expense by ~$15mm since 2010

Executing

ongoing

efficiency

initiatives,

targeted

largely

completed

the

end

2012

Near-term offsets from technology investments, pension related expenses, elevated environmental costs from

foreclosure and mortgage repurchase provision

Targeting ~$1B level of consolidated expenses by the end of 2013,

a 25-30% or ~$350mm reduction from the 2010 level

Regional Banking and Corporate Expenses

$190mm

Numbers/percentages may not add due to rounding.

Environmental costs include foreclosures.

$174

Deferred

Compensation

Environmental¹

Investments

Pension

Efficiencies

$26

$162

$130

$150

$170

1Q10

1Q12

Mortgage Repurchase-Related

Expenses Remain Manageable

Mortgage Repurchase Reserve

Pipeline of requests declined to $380mm in 1Q12,

down 1% linked quarter and 28% from 1Q11

New GSE requests increased by $56mm linked quarter

GSEs recycling through older vintages

Increased level of make-wholes, reflecting more

requests for loss reimbursement on liquidations vs

delinquent loans

Mortgage insurer-related requests down $93mm from

1Q11 and down $21mm linked quarter

Resolutions up 4% linked quarter

1Q12 cumulative rescission rates continue to average

in the 45-55% range; average loss severity remains in

the 50-60% range

Sold origination and servicing platform in August 2008

New GSE Repurchase

Requests by Vintage

Total Pipeline by Vintage¹

Total Pipeline of

Repurchase Requests²

$600mm

($ in millions)

1Q11

2Q11

3Q11

4Q11

1Q12

Beginning Balance

Net Realized Losses

Provision

Ending Balance

$183

$169

$165

$(37)

$(39)

$(53)

$(49)

$(53)

$37

$25

$53

$45

$49

$183

$169

$165

$161

1Q12.

Numbers

may

not

add

due

rounding.

Requests

reflect

pipeline

each

respective

quarter

end.

$200mm

3/31/12.

Based

UPB.

The

pipeline

represents

active

investor

claims

and

mortgage

insurance

(MI)

cancellations

under

review,

both

which

could

occur

the

same

loan.

Excludes

cancellation

notices

that

have

been

reviewed

and

coverage

has

been

lost.

For

purposes

estimating

loss,

cancellation

notices

where

coverage

has

been

lost

are

contemplated.

Successful Execution:

Asset Quality Trends Continue to Improve

1Q12 net charge-offs of $46mm

NCOs down 38% linked quarter and 40% since 1Q11

Regional Bank NCOs down $12mm or 47% from 1Q11

Non-Strategic NCOs down $18mm or 36% since 1Q11

Reserves for loan losses decreased $38mm linked quarter to $346mm or 2.17% of period end loans

Reserves and Net Charge-Offs

Data as of 3/31/12, unless otherwise noted.

Numbers may not add due to rounding.

($ mm)

3Q11

4Q11

1Q12

Beginning NPLs

$404

$341

$279

+ Additions

$36

$17

$22

+ Principal Increase

- Resolutions/Payments

($54)

($39)

($19)

- Net Charge-Offs

($22)

($37)

($10)

- Transfer to ORE

($10)

($3)

- Upgrade to Accrual

($15)

($1)

Ending NPLs

$341

$279

$270

Successful Execution:

Non-Performing Assets Stable

Non-Performing Assets

NPAs up $6mm or 1% linked quarter, and down 36%

or $292mm year over year

Increase in NPAs driven by $27.5mm second liens

being classified as nonperforming as a result of

regulatory guidance issued in 1Q12

NPA % at 2.66% vs 4.55% in 1Q11

NPL levels up 3% linked quarter and down 35%

year over year

NPL % at 2.30% vs 3.99% in 1Q11

ORE balances declined from continued disposition

activity

NPL Activity from Commercial and OTC

ORE Activity

Numbers may not add due to rounding.

4Q11 net charge-offs include a $21mm loss from one bank-related relationship of a TRUP and bank holding company loan.

ORE excludes foreclosed real estate from government insured loans.

($ mm)

3Q11

4Q11

1Q12

Beginning ORE

$79

$80

$69

Valuation Adjustments

($4)

($5)

Adjusted Balance

$75

$76

$64

+ New ORE

$17

$14

$10

+ Capitalized Expenses

- Dispositions:

($12)

($21)

($15)

Single Transactions

($10)

($21)

($14)

Auctions

Bulk Sales

(2)

(0)

(1)

Ending ORE

$80

$69

$59

$1.4B

(1)%

(14)%

(9)%

(2)%

(11)%

(14)%

(9)%

(22)%

$0.0

$0.2

$0.4

$0.6

$0.8

$1.0

$1.2

ORE

New 2nd Lien NPLs

NPLs

Building Long-Term Earnings Power:

FHNC Bonefish –

Long-Term Targets

1Q12 Consolidated

1Q12 Core¹

Long-Term Targets

ROTCE

5.15%

15 -

20%

ROA

0.53%

1.23%

1.25 -

1.45%

NIM

3.12%

3.42%

3.50 -

4.00%

Tier 1 Common

11.7%

8.0 –

9.0%

NCO / Average Loans

1.16%

0.49%

0.30 -

0.70%

Fee Income / Revenue

54%

40 -

50%

Efficiency Ratio

86%

75%

60 -

65%

Equity / Assets

Return on Assets

1.25% - 1.45%

Risk Adjusted Margin

Return on Tangible

Common Equity

15% - 20%

Total Assets

Earning Assets

Pre-tax Income

Tax Rate

Efficiency Ratio

60% - 65%

Annualized Net Charge-Offs

0.30% - 0.70%

Net Interest Margin

3.50% - 4.00%

Tier 1 Common

8% - 9%

% Fee Income

40% - 50%

Core Businesses include Regional Banking, Capital Markets, and Corporate segment. Certain core data is non-GAAP and a reconciliation is provided in the appendix.

ROTCE, ROA, NIM, and NCO / Average Loans are annualized.

Tier 1 Common: current quarter is estimate and is a non-GAAP number, and a reconciliation is provided in the appendix.

FHN Strategic Priorities

Building a Foundation for Long-Term Earnings Power

Improve Profitability and Returns

Replace runoff, low margin, Non-Strategic assets with higher margin, Regional Banking assets

FTN Financial fixed income platform provides strong fee income and higher returns on capital

Continue efficiency and productivity efforts

Focus on Differentiated Customer Service

Emphasis on being easy to do business with

Simplify and streamline processes

Deploy Capital Smartly

Maintain appropriate levels for future banking environment

Continue to deploy capital with a disciplined approach

APPENDIX

Liquidity, Capital, and Reserves

Wholesale Funding

Capital Ratios

Numbers may not add to total due to rounding.

Source: SNL. Peer median includes top 50 publicly traded U.S. banks by total asset size at 4Q11. TCE/RWA is not adjusted for unrealized gains on AFS securities.

1Q12

Total

Capital,

Tier

and

Tier

Common

ratios

are

estimates.

Tier

Common,

and

TCE/TA

are

non-GAAP

numbers,

and

reconciliation

provided

the

end

the

appendix.

Excluding Securities Sold Repos, Trading Liabilities, and sub-debt and other collateralized borrowings of $2.7B.

Period End ($B)

3Q11

4Q11

1Q12

Fed Funds Purchased

$1.6

$1.5

Senior Debt

$0.5

Insured Network Deposits

$1.8

$1.7

$1.6

Borrowing From FHLB

$0.4

$0.0

Other

$0.2

$0.1

$0.2

Total

$4.5

$3.8

$3.7

3Q11

4Q11

1Q12

4Q11 Peer

Median

Total Capital

18.2%

18.0%

17.7%

15.6%

Tier 1 Capital

14.4%

14.2%

12.8%

TCE/TA

9.0%

9.1%

8.7%

8.0%

TCE/RWA

11.5%

11.1%

11.2%

12.0%

11.8%

11.7%

11.2%

2.05%

2.17%

1.44%

4.17%

Reserves vs. Peers

Tier 1 Common Ratio

10%

11%

12%

3Q11

4Q11

1Q12

4Q11 Peer

Median

4Q11 Peer Median

FHN Consolidated

FHN Regional Bank

FHN Non-Strategic

1Q12 Credit Quality Summary by Portfolio

As of 3/31/12.

Numbers may not add to total due to rounding.

Commercial

(C&I & Other)

Income

CRE

Residential

CRE

HE &

HELOC

Other

Permanent

Mortgage

Commercial

(C&I & Other)

Income

CRE

Residential

CRE

HE &

HELOC

Permanent

Mortgage

Other

Total

Period End Loans

$7,160

$1,204

$86

$2,809

$271

$127

$546

$43

$13

$2,583

$604

$526

$15,971

30+ Delinquency

0.41%

0.76%

1.22%

0.92%

1.40%

1.33%

0.12%

0.00%

2.09%

2.25%

3.40%

0.98%

Dollars

$29

$26

$54

$14

$18

$157

NPL %

1.12%

5.28%

41.83%

0.71%

0.03%

13.58%

14.45%

56.20%

1.37%

5.43%

2.13%

2.30%

Dollars

$80

$64

$36

$20

$74

$36

$33

$11

$367

Net

Charge-offs

0.09%

1.88%

6.64%

0.57%

2.38%

15.96%

1.59%

3.53%

2.59%

2.38%

1.16%

Dollars

$22

$46

Allowance

$93

$29

$12

$26

$27

$95

$27

$26

$346

Allowance / Loans %

1.29%

2.42%

14.07%

0.94%

2.20%

4.94%

9.00%

6.96%

3.69%

4.45%

4.95%

2.17%

Allowance / Charge-offs

14.86x

1.29x

2.02x

1.67x

0.91x

0.51x

2.83x

1.07x

1.68x

1.71x

1.87x

(1) Credit Card, Permanent Mortgage, and Other

(2) Restricted and Secured Consumer Real Estate Loans, OTC and Other Consumer.

(3) Net Charge-Offs are quarterly annualized

(NM) Not meaningful

(4) Exercised clean-up calls on jumbo securitizations in 2Q11 and 4Q10, which are now on balance sheet in the Corporate segment

($ in millions)

Regional Bank

Non-Strategic

Corporate

C&I Portfolio

Consolidated C&I Portfolio

C&I Loan Composition

C&I: Period End Loans to Mortgage Companies

Numbers may not add to total due to rounding.

Data as of 1Q12.

TRUPs loan balance net of LOCOM of $34.2mm.

$7.7B portfolio, diversified by industry, managed in

Regional Banking

Includes loans to mortgage companies (included

within correspondent banking) of $1.1B in 1Q12 vs

$1.4B in 4Q11

Net charge-offs down $30mm linked quarter

C&I consolidated reserves of 1.55% at 3/31/12

C&I Portfolio: TRUPS & Bank-Related Loans

1Q12

TRUPs & Bank-Related Loans

Total C&I Portfolio

PE Balances ($mm)

$600

$7,705

Reserves ($mm)

$65

$120

Reserve Coverage

10.85%

1.55%

NPL %

15.19%

2.00%

NCO %

0.12%

0.08%

TRUPS and Bank-Related Loan Coverage

$600mm balances in TRUPS and bank-related loans

$291mm whole-loan TRUPs to banks

$156mm whole-loan TRUPs to insurance companies

$153mm

loans

bank

holding

companies

and

loans

secured

bank

stock

Significant focus is directed at this portfolio

TRUPs and bank holding company loans are re-graded quarterly

Average TRUP size of $9mm

Ten TRUPs on deferral at 3/31/12

Data as of 1Q12.

Reserve coverage includes $34.2mm of LOCOM on TRUPs.

NCO% is QTD Annualized. Numbers may not add to total due to rounding.

Income CRE Portfolio

Performance

Balances of $1.2B at 3/31/12

97% 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 up $6mm linked quarter to $8mm

Reserves of 2.6% at 3/31/12

Continued improvement and stabilization

Loan Type

NPLs By Product Type

Collateral Type

Numbers may not add to total due to rounding. Data as of 1Q12.

As of 3/31/12; NPLs as a percentage of each portfolio.

“Other”

includes Non-Owner Occupied Single Family Residential and Multi-Use Projects.

Land

Other

Office

Multi-Family

Retail

Industrial

Hospitality

34.0%

14.6%

5.9%

1.3%

1.0%

0.0%

Home Equity: Performance and Characteristics

Portfolio Characteristics

Geographic Distribution

30+ Delinquency: Key Drivers

FICO Score-Origination

Lien Position

Channel

54%

% of portfolio

13%

12%

14%

88%

12%

% of portfolio

38%

62%

% of portfolio

First

Second

Total

Balance

$2.2B

$3.6B

$5.9B

Original FICO

744

736

739

Refreshed FICO

742

722

729

Original CLTV

73%

81%

78%

Full Doc

85%

71%

76%

Owner Occupied

89%

96%

93%

HELOCs

$0.8B

$2.8B

$3.6B

Weighted Average

HELOC Utilization

51%

62%

59%

Data as of 1Q12. Numbers/Percentages may not add due to rounding.

All

charts

and

graphs

include

$467.0mm

restricted

and

secured

consumer

real

estate

loans.

Consumer Real Estate Portfolio

30+ Delinquency: Non-Strategic vs. Regional

Net Charge-Offs

Non-Strategic Portfolio Run-Off

Industry¹

= 6.63%

$4B

$60mm

$43

$40

$35

$31

$30

Source: McDash industry data as of January 2012.

All charts and graphs include $467.0mm of restricted and secured

consumer real estate loans.

Mortgage Repurchases:

Origination and Loan Characteristics

GSE and Pipeline

GSE Originations

~$70B of GSE originations from 2005 to 2008

Received

~$1.5B

GSE-related

repurchase

requests

to date, or 2.1% of originations

Represent 99% of all active repurchase/make whole

requests in pipeline at 3/31/12

Pipeline of requests declined to $380mm in 1Q12,

down 28% from 1Q11

$287mm of GSE-related repurchase claims

$54mm of mortgage insurer-related cancellations

$3mm of non-GSE whole loan-related claims

$36mm of other non-repurchase requests

Other Whole Loan Sales/Non-GSE

Represent 1% of all active repurchase/make whole

requests in 1Q12 pipeline

Repurchase requests to date largely driven by MI

cancellations

Loans

were

bundled

with

other

companies’

loans

and

securitized by the purchasers

A trustee has commenced a legal action seeking

repurchase of FHN loans

Two purchasers have requested indemnity related to

four securitizations

$25B

Requests include MI cancellation notices

GSEs account for 99 percent of all actual repurchase/make-whole requests in the pipeline as of 3/31/12 and 91 percent of the active pipeline inclusive of PMI cancellation notices and all other claims

Mortgage Repurchases:

First Horizon Branded Private Securitizations

FHN Alt-A Securitizations

$10B

$5B

~$47B of FHN securitizations from 2000 to 2007

~$33B of FHN securitizations from 2004 to 2007

9 FHN securitizations of jumbo loans called in 2Q11

and 4Q10

102 active first lien FHN mortgage securitizations,

comprised of 46 Jumbo and 56 Alt-A

Outstanding UPB of ~$11B

63% Alt-A

37% Jumbo Loans

FHN private securitizations consisted of 60% Alt-A,

40% Jumbo, and no Subprime

Average FHN securitization size at origination of

$325mm was much smaller than the industry average

of $858mm

2004-2007 FHN Private Mortgage Securitizations

FHN Jumbo Securitizations

Data source: LoanPerformance, CPRCDR, Intex, PolyPaths, Bloomberg with company analysis. FHN has not verified data accuracy. Excludes inactive deals. Data as of Feb 2012 with March remits.

Supplemental private securitization data provided on FHN’s website at ir.fhnc.com.

²Aggregate original UPB of $3.8B. Upon recognition by FHN called loans are no longer subject to repurchase risk.

First Horizon Branded Private Mortgage Securitizations:

Risk Remains Manageable

FHN Private Securitization Repurchase Risk

Different than GSE Risk

FHN Private Mortgage Securitization Facts

FHN private securitizations consisted of 60% Alt-A,

40% Jumbo, and no Subprime

Average FHN securitization size at origination of

$325mm was much smaller than the industry average

of $858mm

Five FHN securitization-related lawsuits outstanding

No repurchase requests related to first lien FHN

securitizations

68% of current UPB dollar-weighted 2004-2007 FHN

private securitizations are outperforming industry

cohort on cumulative loss

87% of current UPB dollar-weighted 2004-2007 FHN

private securitizations are outperforming industry

cohort on 60D+ delinquencies

100% of active FHN securitization deals are older

than 4 years

90% are older than 5 years

All deals will reach 5 years in age by year end 2012

Data source: LoanPerformance, CPRCDR, Intex, PolyPaths, Bloomberg with company analysis. FHN has not verified data accuracy. Excludes inactive deals. Data as of February 2012 with March remits.

Two suits are from 2H10 and the other 2, including a suit by FHFA, are from 3Q11. In a fifth suit, FHN is not a defendant, but has received contractual indemnity claims from an underwriter defendant.

Resolution

Representations

Access

Voting Rights

Generally, reps and warranties

are not as comprehensive as

GSE whole-loan reps and

warranties

No specific representation and

warranty on third-party fraud

in the origination

Difficult for most non-

governmental investors to

access loan files

Significant upfront cost with

unknown returns; must

indemnify trustee

Generally requires a

coordinated investor effort to

compel trustees to investigate

and pursue repurchase claims

Investor interests are not

necessarily aligned

Longer resolution

process expected

Longer timeline may decrease

probability of successful claims

First Horizon Branded Private Mortgage Securitizations:

Delinquencies and Cumulative Losses

Jumbo 60+ Day Delinquencies

Alt-A 60+ Day Delinquencies

Jumbo Cumulative Losses

Alt-A Cumulative Losses

Data as of February 2012. March Remits.

Data source: LoanPerformance, CPRCDR, Intex, PolyPaths, Bloomberg with company analysis. FHN has not verified the data accuracy.

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.

12%

11%

Vintage Remaining Balance / Total 2004-2007 Current Jumbo and Alt-A Balance

29%

20%

11%

12%

Vintage Original Balance / Total 2004-2007 Original Jumbo and Alt-A Balance

27%

18%

FHN

Industry

FHFA Litigation Certificate Breakdown

FHFA Litigation Securitizations

$874mm*

*The original balance related to the FHFA lawsuit is $874mm, plus an additional $9mm of cost over par, totaling $883mm

Numbers

and

percentages

may

not

add

total

due

rounding.

Data

source:

March

2012

Trustee

Reports

and

the

FHFA

lawsuit

filed

9/2/11.

April

2007,

the

GSEs

purchased

the

remaining

$161mm

UPB

the

FHAMS

2005-AA12

IIA1

tranche,

reported

the

FHFA

lawsuit.

This

tranche

had

origination

balance

$213mm.

60D+

Delinquent

defined

delinquency

status

days

and

also

bankruptcies,

foreclosures

and

REO

such

status

for

days

more.

($ in Millions)

Alt-A Deal

FHFA-Related

Tranche

Original

UPB

Paid

Off

Current

UPB

Performing

UPB

60D+

Delinq

Cumulative

Loss

FHAMS 2005-AA9

IIA1

$214

$118

$89

$74

$15

FHAMS 2005-AA10

IA1

$140

$80

$56

$47

FHAMS 2005-AA11

IA1

$129

$67

$53

$45

FHAMS 2005-AA12

IIA1

$161

$69

$82

$67

$15

$10

FHAMS 2006-AA1

IA1

$230

$133

$84

$67

$18

$12

FHFA Total

$874

$466

$364

$300

$64

$43

$1.0B

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.

($ in 000s)

1Q12

4Q11

3Q11

2Q11

1Q11

Regional Banking

Net interest income (GAAP)

$146,554

$150,116

$140,613

$136,296

$134,771

FTE adjustment

1,493

1,510

1,434

1,353

1,243

Net interest income adjusted for impact of FTE (Non-GAAP)

$148,047

$151,626

$142,047

$137,649

$136,014

Capital Markets

Net interest income (GAAP)

$5,684

$5,527

$5,552

$5,509

$5,503

FTE adjustment

140

106

Net interest income adjusted for impact of FTE (Non-GAAP)

$5,824

$5,633

$5,585

$5,575

Corporate

Net interest income (GAAP)

($4,727)

($3,764)

($494)

$412

($332)

FTE adjustment

Net interest income adjusted for impact of FTE (Non-GAAP)

($4,701)

($3,730)

($454)

$480

($261)

Non-Strategic

Net interest income (GAAP)

$24,418

$26,998

$30,669

$30,643

$32,813

FTE adjustment

Net interest income adjusted for impact of FTE (Non-GAAP)

$24,418

$26,998

$30,669

$30,643

$32,813

Total Consolidated

Net interest income (GAAP)

$171,929

$178,877

$176,340

$172,860

$172,755

FTE adjustment

1,659

1,650

1,555

1,497

1,386

Net interest income adjusted for impact of FTE (Non-GAAP)

$173,588

$180,527

$177,895

$174,357

$174,141

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

those

measures.

That

information

not

presented

according

generally accepted accounting principles (GAAP), and is reconciled to GAAP information below.

Includes goodwill and other intangible assets, net of amortization.

Current quarter is an estimate.

Numbers may not add to total due to rounding.

($ in millions)

1Q12

4Q11

3Q11

2Q11

1Q11

Tangible Common Equity (Non-GAAP)

Total equity (GAAP)

$2,674.2

$2,684.6

$2,743.2

$2,681.4

$2,640.1

Less: Noncontrolling interest

295.2

Total common equity

2,379.0

2,389.5

2,448.1

2,386.2

2,344.9

Less: Intangible assets (GAAP)

159.9

160.9

164.1

183.6

Tangible common equity (Non-GAAP)

2,219.1

2,229.6

2,287.2

2,222.2

2,161.3

Less: Unrealized gains on AFS securities, net of tax

67.1

79.4

58.1

39.3

Adjusted tangible common equity (Non-GAAP)

2,152.1

2,162.5

2,207.8

2,164.1

2,121.9

Tangible Assets (Non-GAAP)

Total assets (GAAP)

$25,679.0

$24,789.4

$25,571.5

$25,054.1

$24,438.3

Less: Intangible assets (GAAP)

159.9

160.9

164.1

183.6

Tangible assets (Non-GAAP)

25,519.1

24,629.5

25,410.6

24,890.0

24,254.7

Tier 1 Common (Non-GAAP)

Tier 1 capital

$2,835.0

$2,850.5

$2,875.1

$2,818.5

$2,790.3

Less: Noncontrolling interest -

FTBNA Preferred Stock

294.8

Less: Trust preferred

200.0

Tier 1 common (Non-GAAP)

2,340.2

2,355.6

2,380.3

2,323.7

2,295.5

Risk Weighted Assets

Risk weighted assets

$19,942.7

$20,026.4

$19,910.8

$19,589.3

$19,569.0

Ratios

Tangible common equity to tangible assets (TCE/TA) (Non-GAAP)

8.70%

9.05%

9.00%

8.93%

8.91%

Total equity to total assets (GAAP)

10.41%

10.83%

10.73%

10.70%

10.80%

Tier 1 common ratio (Non-GAAP)

11.73%

11.76%

11.95%

11.86%

11.73%

Tier 1 capital to total assets (GAAP)

11.04%

11.50%

11.24%

11.25%

11.42%

Tangible common equity to risk weighted assets (TCE/RWA) (Non-GAAP)

11.13%

11.49%

11.34%

11.04%

Tangible common equity plus reserves to risk weighted assets (Non-GAAP)

12.86%

13.05%

13.75%

14.02%

14.05%

Total equity plus reserves to total assets (GAAP)

11.76%

12.38%

12.49%

12.79%

13.21%

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

those

measures.

That

information

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.

ROA and Net Charge-offs / Average loans are annualized.

1Q12

Return

on Assets

Net Interest

Margin

Net Charge-Offs/

Average Loans

Fee Income /

Total Revenue

Efficiency

Ratio

Regional Bank (GAAP)

1.56%

5.16%

0.50%

29%

68%

Capital Markets (GAAP)

3.41%

1.18%

0.00%

95%

71%

Corporate (GAAP)

-0.46%

-0.49%

206%

535%

Core (Non-GAAP)

1.23%

3.42%

0.49%

54%

75%

Non-Strategic (GAAP)

-2.13%

2.05%

2.90%

52%

157%

Consolidated (GAAP)

0.53%

3.12%

1.16%

54%

86%

Regional Banking

1Q12

4Q11

1Q11

Total Revenue ($000)

$206,455

$214,675

$201,090

FTEs

3,160

3,258

3,470

Revenue Per FTE ($000)

$65

$66

$58

1Q12

4Q11

1Q11

Regional Bank Pre-Tax Income (GAAP)

$75

$91

$66

Regional Bank Provision (GAAP)

-$7

-$13

-$12

Capital Markets Pre-Tax Income (GAAP)

$32

$27

$22

Corporate Pre-Tax Income (GAAP)

-$18

-$23

-$8

Core Pre-Tax Pre-Provision Income(Non-GAAP)

$81

$82

$67

Non-Strategic Pre-Tax Income (GAAP)

-$44

-$57

-$25

Non-Strategic Provision (GAAP)

$15

$23

$13

Consolidated (GAAP)

$52

$48

$55

Pre-Tax Pre-Provision Income

millions)

FIRST HORIZON CORP - FORM 8-K - EX-99.1 - FIRST HORIZON NATIONAL CORPORATION FINANCIAL SUPPLEMENT AND INVESTOR SLIDE - April 19, 2012

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