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

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EX-99.2 - EXHIBIT 99.2 INVESTOR SLIDES - FIRST HORIZON CORP	fhn1q18earningsv16.htm
8-K - 8-K - FIRST HORIZON CORP	a1q18financialsupplement8-.htm

FIRST QUARTER 2018

FINANCIAL SUPPLEMENT

If you need further information, please contact:

Aarti Bowman, Investor Relations

901-523-4017

aagoorha@firsthorizon.com

FHN TABLE OF CONTENTS




	Page

First Horizon National Corporation Segment Structure	3

Performance Highlights	4

Consolidated Results
Income Statement
Income Statement	6
Other Income and Other Expense	7
Balance Sheet
Period End Balance Sheet	8
Average Balance Sheet	9
Net Interest Income	10
Average Balance Sheet: Yields and Rates	11

Capital Highlights	12

Business Segment Detail
Segment Highlights	13
Regional Banking	14
Fixed Income and Corporate	15
Non-Strategic	16

Asset Quality
Asset Quality: Consolidated	17
Asset Quality: Regional Banking and Corporate	19
Asset Quality: Non-Strategic	20

Non-GAAP to GAAP Reconciliation	21

Glossary of Terms	22

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 earnings release, as well as critical accounting estimates and other factors described in FHN’s recent filings with the SEC. FHN disclaims any obligation to update any such forward-looking statements or to publicly announce the result of any revisions to any of the forward-looking statements to reflect future events or developments.

Use of Non-GAAP Measures and Regulatory Measures that are not GAAP

Certain measures are included in this financial supplement that are “non-GAAP,” meaning (under U.S. financial reporting rules) they are not presented in accordance with generally accepted accounting principles (“GAAP”) in the U.S. and also are not codified in U.S. banking regulations currently applicable to FHN. Although other entities may use calculation methods that differ from those used by FHN for non-GAAP measures, FHN’s management believes such measures are relevant to understanding the financial condition, capital position, and financial results of FHN and its business segments. Non-GAAP measures are reported to FHN’s management and Board of Directors through various internal reports.

Presentation of regulatory measures, some of which follow regulatory definitions rather than GAAP, provides a meaningful base for comparability to other financial institutions subject to the same regulations as FHN. Such measures are used by the various banking regulators in reviewing the performance, stability, and capital adequacy of financial institutions they regulate. Although not GAAP terms, these regulatory measures are not considered “non-GAAP” under U.S. financial reporting rules as long as their presentation conforms to regulatory standards. Regulatory measures used in this financial supplement include: common equity tier 1 capital, generally defined as common equity less goodwill, other intangibles, and certain other required regulatory deductions; tier 1 capital, generally defined as the sum of core capital (including common equity and instruments that cannot be redeemed at the option of the holder) adjusted for certain items under risk based capital regulations; risk weighted assets (“RWA”), which is a measure of total on- and off-balance sheet assets adjusted for credit and market risk, used to determine regulatory capital ratios; and pre-provision net revenue (“PPNR”), calculated by adding the provision/(provision credit) for loan losses to income before income taxes, excluding securities gains/(losses).

The non-GAAP measures presented in this financial supplement are return on average tangible common equity (“ROTCE”), tangible common equity (“TCE”) to tangible assets (“TA”), and tangible book value ("TBV") per common share.

Refer to the tabular reconciliation of non-GAAP to GAAP measures and presentation of the most comparable GAAP items on page 21 of this financial supplement.



FIRST HORIZON NATIONAL CORPORATION SEGMENT STRUCTURE



FHN PERFORMANCE HIGHLIGHTS


Summary of First Quarter 2018 Notable Items
Segment	Item	Income Statement	Amount Favorable/ (Unfavorable)	Comments
Corporate	Acquisition expenses	Noninterest expense: various	$(31.4) million	Pre-tax acquisition-related expenses primarily associated with the Capital Bank Financial Corp. ("CBF") acquisition

Corporate	Property sale	Noninterest income: other	$3.3 million	Pre-tax gain on the sale of a building

First Quarter 2018 vs. Fourth Quarter 2017

Consolidated


•	Net income available to common shareholders was $90.6 million, or $.27 per diluted share in 1Q18 compared to net loss available to common shareholders of $52.8 million, or $.20 loss per diluted share in 4Q17


•	Net interest income (“NII”) increased to $301.2 million in 1Q18 from $242.1 million in 4Q17


•	The increase in NII in 1Q18 was primarily driven by the full quarter impact of loan and deposit growth including accretion associated with the CBF acquisition (compared with one month in 4Q17)


•	NII was also favorably impacted in 1Q18 by higher average balances of other commercial loans, accelerated accretion due to loan pay-offs, and the positive impact of higher interest rates, but was negatively impacted by fewer days in 1Q18 relative to 4Q17 and lower average balances of loans to mortgage companies


•	Net Interest Margin (“NIM”) improved to 3.43 percent in 1Q18 from 3.27 percent in 4Q17


•	The improvement in NIM was also largely the result of deposit and loan growth and accretion associated with the CBF acquisition


•	The provision for loan losses was a credit of $1.0 million in 1Q18 compared to provision expense of $3.0 million in 4Q17


•	Noninterest income (including securities gains) increased to $136.0 million in 1Q18 from $133.2 million in 4Q17


•	Noninterest expense decreased to $313.3 million in 1Q18 from $346.7 million in 4Q17


•	The expense decrease was largely driven by the following items:


•	$30.0 million decrease in loss accruals related to legal matters


•	$15.3 million decrease in acquisition-related expenses associated with the CBF acquisition


•	Lower variable compensation and other personnel-related expenses in 1Q18 compared to 4Q17


•	These expense decreases were somewhat offset by a full quarter of expenses related to the inclusion of Capital Bank in 1Q18 compared with one month of expenses in 4Q17


•	Provision for income taxes decreased to $29.9 million in 1Q18 from $74.0 million in 4Q17


•	1Q18 includes $1.6 million of unfavorable discrete items related to CBF purchase accounting adjustments


•	4Q17 includes the effects of the Tax Cuts and Jobs Act ("The Tax Reform Act") somewhat mitigated by a favorable effective tax rate adjustment associated with the reversal of a capital loss deferred tax valuation allowance

Regional Banking


•	Pre-tax income increased to $167.0 million in 1Q18 from $126.2 million in 4Q17; PPNR was $172.4 million and $135.9 million in 1Q18 and 4Q17, respectively


•	Average loans increased to $25.7 billion in 1Q18 from $21.1 billion in 4Q17; period-end loans decreased 1 percent to $26.0 billion in 1Q18


•	Average deposits increased to $27.1 billion in 1Q18 from $22.4 billion in 4Q17, respectively; period-end deposits remained consistent at $27.7 billion


•	The increase in average loans and deposits was primarily driven by loans and deposits added through the CBF acquisition late in 4Q17


•	NII increased 22 percent to $298.7 million in 1Q18 from $244.0 million in 4Q17 primarily due to the full quarter impact of loan and deposit growth and accretion associated with the CBF acquisition (compared with one month in 4Q17)


•	Provision expense decreased to $5.3 million in 1Q18 from $9.7 million in 4Q17


•	Noninterest income increased 12 percent to $78.9 million in 1Q18 from $70.5 million in 4Q17 largely driven by increases in bankcard fee income, other service charges, and deposit fee income, as well as other increases due to the full quarter impact of CBF activities in 1Q18 compared with one month of CBF activities in 4Q17


•	Noninterest expense was $205.2 million in 1Q18, up 15 percent from $178.6 million in 4Q17


•	1Q18 expense includes a $29.5 million increase in expenses attributable to CBF activities, inclusive of a $12.4 million increase in personnel-related expenses (primarily due to the full quarter impact of CBF activities in 1Q18 compared with one month in 4Q17)

Fixed Income


•	Pre-tax income was $3.5 million in 1Q18 compared to $6.0 million in 4Q17


•	NII increased to $8.5 million in 1Q18 from $5.9 million in 4Q17


•	Noninterest income decreased to $45.6 million in 1Q18 from $55.3 million in 4Q17


•	Fixed income product revenue was $38.0 million in 1Q18 compared to $40.6 million in 4Q17


•	Fixed income product average daily revenue (“ADR”) was $624 thousand and $655 thousand in 1Q18 and 4Q17, respectively


•	Other product revenue was $7.6 million in 1Q18 compared to $14.6 million in 4Q17 due to a decrease in fees from loan sales


•	Noninterest expense was $50.5 million in 1Q18 compared to $55.2 million in 4Q17 driven by a decrease in variable compensation expense somewhat offset by the seasonal first quarter FICA reset



FHN PERFORMANCE HIGHLIGHTS (continued)


First Quarter 2018 vs. Fourth Quarter 2017 (continued)

Corporate


•	Pre-tax loss was $54.8 million in 1Q18 compared to pre-tax loss of $82.9 million in 4Q17


•	NII was negative $13.2 million and negative $15.6 million in 1Q18 and 4Q17, respectively


•	Estimated effective duration of the securities portfolio was 4.5 years in 1Q18 and 3.7 years in 4Q17


•	Noninterest income (including net securities gains) was $9.5 million in 1Q18, up from $6.7 million in 4Q17


•	1Q18 includes a $3.3 million gain on the sale of a building


•	Noninterest expense decreased to $51.1 million in 1Q18 from $74.0 million in 4Q17


•	1Q18 includes a $15.3 million decrease in acquisition-related expenses primarily associated with the CBF acquisition, as well as lower personnel-related expenses relative to 4Q17


•	4Q17 expense also includes a $5.6 million charitable contribution to the First Tennessee Foundation, somewhat offset by $4.3 million of deferred compensation BOLI gains

Non-Strategic


•	Pre-tax income was $9.2 million in 1Q18 compared to pre-tax loss of $23.7 million in 4Q17


•	NII was $7.2 million and $7.8 million in 1Q18 and 4Q17, respectively


•	The provision credit was $6.3 million in 1Q18 compared to a provision credit of $6.7 million in 4Q17


•	Noninterest expense decreased to $6.4 million in 1Q18 from $38.9 million in 4Q17


•	4Q17 expense includes $32.0 million of pre-tax loss accruals related to legal matters

Asset Quality


•	Allowance for loan losses decreased to $187.2 million in 1Q18 from $189.6 million in 4Q17; the allowance to loans ratio remained at 69 bps


•	Net charge-offs were $1.4 million in 1Q18 compared to $8.3 million in 4Q17


•	Regional banking net charge-offs were $3.6 million compared to $11.6 million in 4Q17


•	4Q17 was primarily due to a single larger credit within the C&I portfolio as a result of borrower fraud


•	Non-strategic net recoveries were $2.2 million compared to $3.3 million in 4Q17


•	Nonperforming loans (“NPLs”), excluding loans held-for-sale, increased to $132.0 million in 1Q18 from $130.6 million in 4Q17


•	30+ delinquencies decreased $13.1 million to $79.4 million in 1Q18 from $92.5 million in 4Q17


•	The decrease was primarily driven by favorable resolutions across the commercial and consumer portfolios

Taxes


•	The effective tax rates for 1Q18 and 4Q17 were 23.96 percent and 288.93 percent, respectively


•	1Q18 was favorably affected by the decrease in the federal tax rate from 35 percent to 21 percent, non-deductible expenses related to FDIC premium and executive compensation offset a portion of the benefit from the rate decrease


•	1Q18 includes $1.6 million of unfavorable discrete items related to CBF purchase accounting adjustments


•	4Q17 effective rate was negatively impacted by the estimated effects of the Tax Reform Act primarily associated with a decrease in the valuation of the net deferred tax asset balance


•	4Q17 effective rate was favorably impacted by the reversal of a capital loss deferred tax valuation allowance


•	The rates also reflect the favorable net effect from permanent benefits. Permanent benefits primarily consist of tax credit investments, life insurance, and tax-exempt interest. The permanent benefits in 2018 are offset by non-deductibility (under Tax Reform) of a portion of FDIC premiums and executive compensation expenses

Capital and Liquidity


•	Declared $.12 per common share quarterly dividend in 1Q18, aggregating $39.2 million, which was paid on April 2, 2018


•	Declared aggregate preferred quarterly dividend of $1.6 million in 1Q18 which was paid on April 10, 2018


•	There were no repurchases of shares in 1Q18 (other than those related to employee stock award programs). In January 2018, FHN announced board approval of a new $250 million common share purchase program that will expire January 31, 2020, replacing an old program scheduled to expire January 31, 2018


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


•	Total equity to total assets (GAAP) of 11.30 percent in 1Q18 compared to 11.06 percent in 4Q17


•	Tangible common equity to tangible assets (Non-GAAP) of 6.71 percent in 1Q18 compared to 6.57 percent in 4Q17


•	Common Equity Tier 1 of 8.98 percent in 1Q18 compared to 8.88 percent in 4Q17


•	Tier 1 of 9.98 percent in 1Q18 compared to 9.83 percent in 4Q17


•	Total Capital of 11.25 percent in 1Q18 compared to 11.10 percent in 4Q17


•	Leverage of 8.50 percent in 1Q18 compared to 10.31 percent in 4Q17; 1Q18 decrease is driven by an increase in average assets for leverage (ratio denominator) due to the timing of the CBF acquisition late in 4Q17 (full quarter average impact in 1Q18 compared to one month in 4Q17)

FHN CONSOLIDATED INCOME STATEMENT

Quarterly, Unaudited



	(a)															1Q18 Changes vs.
(Dollars in thousands, except per share data)	1Q18			4Q17			3Q17			2Q17			1Q17			4Q17			1Q17

Interest income	$	363,355		$	287,633		$	248,145		$	235,341		$	218,811		26		%	66		%
Less: interest expense	62,182			45,545			38,328			34,640			29,103			37		%	NM
Net interest income	301,173			242,088			209,817			200,701			189,708			24		%	59		%
Provision/(provision credit) for loan losses	(1,000		)	3,000			—			(2,000		)	(1,000		)	NM			*
Net interest income after provision for loan losses	302,173			239,088			209,817			202,701			190,708			26		%	58		%
Noninterest income:
Fixed income	45,506			55,079			55,758			55,110			50,678			(17	)	%	(10	)	%
Deposit transactions and cash management	31,162			30,158			28,011			27,858			24,565			3		%	27		%
Brokerage, management fees and commissions	13,483			12,642			11,937			12,029			11,906			7		%	13		%
Trust services and investment management	7,277			7,116			6,953			7,698			6,653			2		%	9		%
Bankcard income	11,267			8,237			6,170			5,605			5,455			37		%	NM
Bank-owned life insurance	3,993			3,987			3,539			4,351			3,247			*			23		%
Securities gains/(losses), net	86			137			6			405			44			(37	)	%	95		%
Other (b)	23,243			15,834			43			14,617			14,391			47		%	62		%
Total noninterest income	136,017			133,190			112,417			127,673			116,939			2		%	16		%
Adjusted gross income after provision for loan losses	438,190			372,278			322,234			330,374			307,647			18		%	42		%
Noninterest expense:
Employee compensation, incentives, and benefits (c)	171,254			177,312			137,383			138,276			134,494			(3	)	%	27		%
Repurchase and foreclosure provision (d)	(72		)	53			(609		)	(21,733		)	(238		)	NM			70		%
Legal fees	2,345			1,245			2,052			3,496			5,283			88		%	(56	)	%
Professional fees (e)	12,272			26,958			6,566			9,659			4,746			(54	)	%	NM
Occupancy	20,451			15,887			13,619			12,800			12,340			29		%	66		%
Computer software	15,132			13,157			11,993			12,285			10,799			15		%	40		%
Contract employment and outsourcing (f)	4,053			5,979			2,762			3,255			2,958			(32	)	%	37		%
Operations services	15,561			10,619			10,805			11,524			10,875			47		%	43		%
Equipment rentals, depreciation, and maintenance	10,018			9,530			6,626			7,036			6,351			5		%	58		%
FDIC premium expense	8,614			9,090			6,062			5,927			5,739			(5	)	%	50		%
Advertising and public relations	3,599			5,313			5,205			4,095			4,601			(32	)	%	(22	)	%
Communications and courier	8,232			5,379			4,328			4,117			3,800			53		%	NM
Amortization of intangible assets	6,474			3,568			1,964			1,964			1,232			81		%	NM
Other (b)	35,332			62,580			28,113			25,216			19,225			(44	)	%	84		%
Total noninterest expense	313,265			346,670			236,869			217,917			222,205			(10	)	%	41		%
Income before income taxes	124,925			25,608			85,365			112,457			85,442			NM			46		%
Provision for income taxes (g)	29,931			73,989			13,596			17,253			27,054			(60	)	%	11		%
Net income/(loss)	94,994			(48,381		)	71,769			95,204			58,388			NM			63		%
Net income attributable to noncontrolling interest	2,820			2,910			2,883			2,852			2,820			(3	)	%	*
Net income/(loss) attributable to controlling interest	92,174			(51,291		)	68,886			92,352			55,568			NM			66		%
Preferred stock dividends	1,550			1,550			1,550			1,550			1,550			*			*
Net income/(loss) available to common shareholders	$	90,624		$	(52,841	)	$	67,336		$	90,802		$	54,018		NM			68		%
Common Stock Data
EPS	$	0.28		$	(0.20	)	$	0.29		$	0.39		$	0.23		NM			22		%
Basic shares (thousands)	326,489			265,169			233,749			233,482			233,076			23		%	40		%
Diluted EPS	$	0.27		$	(0.20	)	$	0.28		$	0.38		$	0.23		NM			17		%
Diluted shares (thousands)	330,344			265,169			236,340			236,263			236,855			25		%	39		%
Key Ratios & Other
Return on average assets (annualized) (h)	0.95		%	(0.58		)%	0.99		%	1.32		%	0.82		%
Return on average common equity (“ROE”) (annualized) (g)	8.79		%	(6.73		)%	10.79		%	15.26		%	9.40		%
Return on average tangible common equity (“ROTCE”) (annualized) (h) (i)	14.06		%	(8.78		)%	12.17		%	17.30		%	10.33		%
Fee income to total revenue (h)	31.10		%	35.47		%	34.89		%	38.80		%	38.13		%
Efficiency ratio (h)	71.67		%	92.41		%	73.51		%	66.44		%	72.47		%
Average full time equivalent employees	5,835			4,792			4,277			4,328			4,258

Certain previously reported amounts have been revised to reflect the retroactive effect of the adoption of ASU 2017-07 "Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost" effective January 1, 2018.

NM - Not meaningful

* Amount is less than one percent.

(a) 1Q18 includes three months of activity related to the CBF acquisition compared with one month of activity in 4Q17.

(b) Refer to the Other Income and Other Expense table on page 7 for additional information.

(c) 1Q18 and 4Q17 include $3.9 million and $16.8 million, respectively of acquisition-related expenses associated with the CBF acquisition.

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

(e) 1Q18 and 4Q17 include $5.4 million and $20.3 million, respectively of acquisition-related expenses associated with the CBF acquisition; 3Q17 and 2Q17 increases largely driven by acquisition-related expenses primarily associated with the CBF and Coastal acquisitions.

(f) 1Q18 and 4Q17 include $1.4 million and $.9 million, respectively of acquisition-related expenses associated with the CBF acquisition.

(g) 1Q18 includes $1.6 million of unfavorable discrete tax adjustments related to CBF purchase accounting adjustments; 4Q17 increase primarily associated with the effects of the Tax Act; 4Q17, 3Q17 and 2Q17 include the impact of a favorable effective tax rate adjustment associated with the reversal of a capital loss deferred tax valuation allowance.

(h) See Glossary of Terms for definitions of Key Ratios.

(i) This non-GAAP measure is reconciled to ROE (GAAP) in the Non-GAAP to GAAP reconciliation on page 21 of this financial supplement.

FHN OTHER INCOME AND OTHER EXPENSE

Quarterly, Unaudited



	(a)												1Q18 Changes vs.
(Thousands)	1Q18		4Q17		3Q17			2Q17		1Q17			4Q17			1Q17

Other Income
ATM and interchange fees	$	3,267	$	3,427	$	3,137		$	3,083	$	2,778		(5	)	%	18		%
Dividend income (b)	2,249		—		—			—		—			NM			NM
Electronic banking fees	1,204		1,171		1,282			1,306		1,323			3		%	(9	)	%
Letter of credit fees	1,249		1,292		1,211			1,122		1,036			(3	)	%	21		%
Mortgage banking	1,770		766		1,354			1,268		1,261			NM			40		%
Deferred compensation (c)	451		1,876		1,128			1,491		1,827			(76	)	%	(75	)	%
Insurance commissions	757		472		567			592		883			60		%	(14	)	%
Other service charges	5,124		3,485		2,954			3,109		2,984			47		%	72		%
Gain/(loss) on extinguishment of debt (d)	—		—		(14,329		)	—		—			NM			NM
Other (e)	7,172		3,345		2,739			2,646		2,299			NM			NM
Total	$	23,243	$	15,834	$	43		$	14,617	$	14,391		47		%	62		%

Other Expense
Litigation and regulatory matters	$	2,134	$	32,114	$	8,162		$	533	$	(292	)	(93	)	%	NM
Tax credit investments	1,137		822		762			942		942			38		%	21		%
Travel and entertainment	2,983		3,154		2,798			3,162		2,348			(5	)	%	27		%
Employee training and dues	1,779		1,357		1,198			1,453		1,543			31		%	15		%
Customer relations	1,063		1,510		1,361			1,543		1,336			(30	)	%	(20	)	%
Miscellaneous loan costs	1,142		673		757			699		622			70		%	84		%
Supplies	1,836		1,222		928			1,093		863			50		%	NM
OREO	108		53		303			446		204			NM			(47	)	%
Other insurance and taxes	2,665		2,457		2,396			2,443		2,390			8		%	12		%
Non-service components of net periodic pension and post retirement cost	504		363		454			851		477			39		%	6		%
Other (f)	19,981		18,855		8,994			12,051		8,792			6		%	NM
Total	$	35,332	$	62,580	$	28,113		$	25,216	$	19,225		(44	)	%	84		%

NM - Not meaningful

(a) 1Q18 includes three months of activity related to the CBF acquisition compared to one month of activity in 4Q17.

(b) Effective 1/1/18 FHN adopted ASU 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities" and began recording dividend income from FRB and FHLB holdings in other income. Prior to 1Q18 these amounts were included in Interest income on the Income Statement.

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

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

(e) 1Q18 includes a $3.3 million gain on the sale of a building.

(f) 1Q18 includes $17.0 million of acquisition-related expenses associated with the CBF acquisition; 4Q17 includes a $5.6 million charitable contribution to the First Tennessee Foundation and $6.2 million of acquisition-related expenses associated with the CBF acquisition; 2Q17 includes a $3.2 million charitable contribution to the First Tennessee Foundation.

FHN CONSOLIDATED PERIOD-END BALANCE SHEET

Quarterly, Unaudited



																1Q18 Changes vs.
(Thousands)	1Q18			4Q17			3Q17			2Q17			1Q17			4Q17			1Q17

Assets:
Investment securities (a)	$	4,836,155		$	5,180,255		$	3,973,138		$	3,959,592		$	3,953,632		(7	)	%	22		%
Loans held-for-sale (b)	770,412			699,377			339,780			432,771			105,456			10		%	NM
Loans, net of unearned income	27,249,793			27,658,929			20,166,091			19,989,319			19,090,074			(1	)	%	43		%
Federal funds sold	62,541			87,364			76,316			34,036			31,495			(28	)	%	99		%
Securities purchased under agreements to resell	910,670			725,609			663,637			657,991			835,222			26		%	9		%
Interest-bearing cash (c)	309,351			1,185,600			604,326			573,666			2,106,597			(74	)	%	(85	)	%
Trading securities	1,759,430			1,416,345			1,469,402			1,315,891			1,167,310			24		%	51		%
Total earning assets	35,898,352			36,953,479			27,292,690			26,963,266			27,289,786			(3	)	%	32		%
Cash and due from banks	459,820			639,073			347,802			387,053			369,290			(28	)	%	25		%
Fixed income receivables (d)	94,036			68,693			68,750			127,724			168,315			37		%	(44	)	%
Goodwill (e)	1,398,501			1,386,853			236,335			236,335			191,371			1		%	NM
Other intangible assets, net (e)	174,415			184,389			43,157			45,121			19,785			(5	)	%	NM
Premises and equipment, net	531,981			532,251			293,393			292,463			290,497			*			83		%
Other real estate owned ("OREO")	35,715			43,382			12,522			11,901			15,144			(18	)	%	NM
Allowance for loan losses	(187,194		)	(189,555		)	(194,867		)	(197,257		)	(201,968		)	(1	)	%	(7	)	%
Derivative assets	114,348			81,634			80,976			91,653			98,120			40		%	17		%
Other assets (a)	1,943,221			1,723,189			1,441,878			1,411,697			1,378,260			13		%	41		%
Total assets	$	40,463,195		$	41,423,388		$	29,622,636		$	29,369,956		$	29,618,600		(2	)	%	37		%

Liabilities and Equity:
Deposits:
Consumer interest	$	12,674,251		$	12,877,955		$	9,164,017		$	9,429,788		$	9,367,537		(2	)	%	35		%
Commercial interest	5,816,992			5,469,868			2,915,446			3,285,931			3,275,599			6		%	78		%
Market-indexed (f)	4,346,862			4,249,536			3,534,546			3,315,045			4,481,085			2		%	(3	)	%
Total interest-bearing deposits	22,838,105			22,597,359			15,614,009			16,030,764			17,124,221			1		%	33		%
Noninterest-bearing deposits	7,980,846			8,023,003			6,485,245			6,302,585			6,355,620			(1	)	%	26		%
Total deposits	30,818,951			30,620,362			22,099,254			22,333,349			23,479,841			1		%	31		%
Federal funds purchased	392,714			399,820			292,650			314,892			504,805			(2	)	%	(22	)	%
Securities sold under agreements to repurchase	672,154			656,602			516,867			743,684			406,354			2		%	65		%
Trading liabilities	827,362			638,515			579,028			555,793			848,190			30		%	(2	)	%
Other short-term borrowings (g)	1,332,141			2,626,213			1,637,419			1,044,658			79,454			(49	)	%	NM
Term borrowings (h)	1,214,967			1,218,097			1,059,507			1,033,329			1,035,036			*			17		%
Fixed income payables (d)	6,167			48,996			44,304			28,571			21,116			(87	)	%	(71	)	%
Derivative liabilities	121,394			85,061			83,146			92,717			101,347			43		%	20		%
Other liabilities	504,817			549,234			426,910			396,075			401,997			(8	)	%	26		%
Total liabilities	35,890,667			36,842,900			26,739,085			26,543,068			26,878,140			(3	)	%	34		%
Equity:
Common stock	204,496			204,211			146,395			146,336			146,177			*			40		%
Capital surplus	3,155,407			3,147,613			1,401,359			1,395,797			1,391,777			*			NM
Undivided profits	1,211,655			1,160,434			1,177,126			1,131,162			1,061,409			4		%	14		%
Accumulated other comprehensive loss, net (i)	(390,085		)	(322,825		)	(232,384		)	(237,462		)	(249,958		)	21		%	56		%
Preferred stock	95,624			95,624			95,624			95,624			95,624			*			*
Noncontrolling interest (j)	295,431			295,431			295,431			295,431			295,431			*			*
Total equity	4,572,528			4,580,488			2,883,551			2,826,888			2,740,460			*			67		%
Total liabilities and equity	$	40,463,195		$	41,423,388		$	29,622,636		$	29,369,956		$	29,618,600		(2	)	%	37		%

Certain previously reported amounts have been reclassified to reflect the early adoption of ASU 2018-02, "Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income" effective December 31, 2017.

NM - Not meaningful

*Amount is less than one percent.

(a) Effective 1/1/18 FHN adopted ASU 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities" which resulted in the reclassification of all equity investments from investment securities to other assets.

(b) 4Q17 increase driven by loans acquired from CBF that have been classified as held-for-sale; 2Q17 increase driven by the Coastal acquisition.

(c) Includes excess balances held at Fed; 4Q17 increase driven by the CBF acquisition; 2Q17 decrease due to loan growth and the Coastal acquisition; 1Q17 level largely driven by an inflow of customer deposits.

(d) Period-end balances fluctuate based on the level of pending unsettled trades.

(e) 4Q17 increase driven by the CBF acquisition; 2Q17 increase driven by the Coastal acquisition.

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

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

(h) 4Q17 increase driven by the CBF acquisition.

(i) 1Q18 increase primarily driven by an increase in unrealized losses on AFS securities.

(j) Consists of preferred stock of subsidiaries.

FHN CONSOLIDATED AVERAGE BALANCE SHEET

Quarterly, Unaudited



	(a)															1Q18 Changes vs.
(Thousands)	1Q18			4Q17			3Q17			2Q17			1Q17			4Q17			1Q17

Assets:
Earning assets:
Loans, net of unearned income:
Commercial, financial, and industrial (C&I)	$	15,535,621		$	13,756,024		$	12,474,188		$	11,830,942		$	11,381,258		13		%	37		%
Commercial real estate	4,230,217			2,892,949			2,211,831			2,175,733			2,176,355			46		%	94		%
Consumer real estate	6,302,365			5,029,588			4,398,550			4,431,591			4,491,786			25		%	40		%
Permanent mortgage	389,732			400,991			405,287			408,202			415,916			(3	)	%	(6	)	%
Credit card and other	594,130			439,057			354,807			355,123			348,123			35		%	71		%
Total loans, net of unearned income (b)	27,052,065			22,518,609			19,844,663			19,201,591			18,813,438			20		%	44		%
Loans held-for-sale (c)	726,978			504,577			540,121			320,698			110,726			44		%	NM
Investment securities:
U.S. treasuries	98			99			109			100			100			(1	)	%	(2	)	%
U.S. government agencies	4,792,709			4,042,844			3,762,180			3,755,818			3,735,472			19		%	28		%
States and municipalities	51			182			—			—			4,350			(72	)	%	(99	)	%
Corporate bonds	65,634			29,904			10,000			10,000			10,000			NM			NM
Other (d)	5,153			203,395			188,361			188,229			186,670			(97	)	%	(97	)	%
Total investment securities	4,863,645			4,276,424			3,960,650			3,954,147			3,936,592			14		%	24		%
Trading securities	1,711,776			1,439,152			1,125,033			1,283,212			929,545			19		%	84		%
Other earning assets:
Federal funds sold	27,797			24,980			29,852			36,936			17,015			11		%	63		%
Securities purchased under agreements to resell	881,429			818,887			664,208			833,253			691,469			8		%	27		%
Interest-bearing cash (e)	482,060			459,868			392,274			970,853			2,117,498			5		%	(77	)	%
Total other earning assets	1,391,286			1,303,735			1,086,334			1,841,042			2,825,982			7		%	(51	)	%
Total earning assets	35,745,750			30,042,497			26,556,801			26,600,690			26,616,283			19		%	34		%
Allowance for loan losses	(190,420		)	(194,859		)	(196,631		)	(200,534		)	(202,618		)	(2	)	%	(6	)	%
Cash and due from banks	563,555			437,604			355,626			350,832			367,136			29		%	54		%
Fixed income receivables	61,757			79,162			54,286			64,779			41,688			(22	)	%	48		%
Premises and equipment, net	537,359			367,196			293,286			291,769			289,202			46		%	86		%
Derivative assets	79,292			68,692			74,453			74,974			84,419			15		%	(6	)	%
Other assets (d)	3,553,431			2,305,962			1,737,006			1,693,840			1,609,996			54		%	NM
Total assets	$	40,350,724		$	33,106,254		$	28,874,827		$	28,876,350		$	28,806,106		22		%	40		%

Liabilities and equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Consumer interest	$	12,586,843		$	10,279,937		$	9,244,021		$	9,330,990		$	9,003,550		22		%	40		%
Commercial interest	5,540,090			3,684,643			2,876,398			3,086,139			3,097,922			50		%	79		%
Market-indexed (f)	4,238,128			3,958,224			3,523,450			3,809,281			4,666,292			7		%	(9	)	%
Total interest-bearing deposits	22,365,061			17,922,804			15,643,869			16,226,410			16,767,764			25		%	33		%
Federal funds purchased	464,300			425,900			376,150			435,854			552,820			9		%	(16	)	%
Securities sold under agreements to repurchase	756,487			595,275			680,366			616,837			419,131			27		%	80		%
Trading liabilities	822,815			741,063			597,269			762,667			642,456			11		%	28		%
Other short-term borrowings (g)	1,698,490			1,246,087			655,599			221,472			80,939			36		%	NM
Term borrowings	1,219,916			1,121,268			1,112,735			1,034,020			1,039,719			9		%	17		%
Total interest-bearing liabilities	27,327,069			22,052,397			19,065,988			19,297,260			19,502,829			24		%	40		%
Noninterest-bearing deposits	7,843,239			6,972,912			6,411,160			6,280,472			6,051,510			12		%	30		%
Fixed income payables	27,913			53,401			28,455			36,083			22,843			(48	)	%	22		%
Derivative liabilities	72,157			65,843			80,916			85,119			84,928			10		%	(15	)	%
Other liabilities	506,430			455,536			421,551			399,247			421,328			11		%	20		%
Total liabilities	35,776,808			29,600,089			26,008,070			26,098,181			26,083,438			21		%	37		%
Equity:
Common stock	204,332			165,991			146,354			146,246			146,098			23		%	40		%
Capital surplus	3,151,931			1,993,908			1,397,883			1,392,718			1,389,062			58		%	NM
Undivided profits	1,192,462			1,194,840			1,159,451			1,085,326			1,044,388			*			14		%
Accumulated other comprehensive loss, net (h)	(365,864		)	(239,629		)	(227,986		)	(237,176		)	(247,935		)	53		%	48		%
Preferred stock	95,624			95,624			95,624			95,624			95,624			*			*
Noncontrolling interest (i)	295,431			295,431			295,431			295,431			295,431			*			*
Total equity	4,573,916			3,506,165			2,866,757			2,778,169			2,722,668			30		%	68		%
Total liabilities and equity	$	40,350,724		$	33,106,254		$	28,874,827		$	28,876,350		$	28,806,106		22		%	40		%

NM - Not meaningful

*Amount is less than one percent.

(a) 1Q18 includes the average impact of three months of balances related to the CBF acquisition compared to one month in 4Q17.

(b) Includes loans on nonaccrual status.

(d) Effective 1/1/18 FHN adopted ASU 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities" which resulted in the reclassification of all equity investments from investment securities to other assets.

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

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

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

(h) 1Q18 increase reflects the early adoption of ASU 2018-02, "Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income," and an increase in unrealized losses on AFS securities.

(i) Consists of preferred stock of subsidiaries.

FHN CONSOLIDATED NET INTEREST INCOME (a)

Quarterly, Unaudited



	(b)															1Q18 Changes vs.
(Thousands)	1Q18			4Q17			3Q17			2Q17			1Q17			4Q17			1Q17

Interest Income:
Loans, net of unearned income (c)	$	301,411		$	242,950		$	207,845		$	195,162		$	183,031		24		%	65		%
Loans held-for-sale	12,144			6,601			6,123			3,510			1,283			84		%	NM
Investment securities:
U.S. government agencies	31,870			25,911			23,844			24,122			24,221			23		%	32		%
States and municipalities	—			3			—			—			101			NM			NM
Corporate bonds	745			355			131			132			131			NM			NM
Other (d)	363			2,015			1,731			1,535			1,414			(82	)	%	(74	)	%
Total investment securities	32,978			28,284			25,706			25,789			25,867			17		%	27		%
Trading securities	14,537			11,285			8,604			9,846			6,602			29		%	NM
Other earning assets:
Federal funds sold	145			113			131			146			54			28		%	NM
Securities purchased under agreements to resell	2,503			1,652			1,476			1,442			590			52		%	NM
Interest-bearing cash	1,684			1,484			1,226			2,456			4,235			13		%	(60	)	%
Total other earning assets	4,332			3,249			2,833			4,044			4,879			33		%	(11	)	%
Interest income	$	365,402		$	292,369		$	251,111		$	238,351		$	221,662		25		%	65		%

Interest Expense:
Interest-bearing deposits:
Consumer interest	$	7,534		$	4,977		$	5,032		$	5,448		$	3,852		51		%	96		%
Commercial interest	12,127			7,220			4,970			4,797			3,927			68		%	NM
Market-indexed (e)	15,372			12,272			10,266			8,941			8,407			25		%	83		%
Total interest-bearing deposits	35,033			24,469			20,268			19,186			16,186			43		%	NM
Federal funds purchased	1,738			1,387			1,173			1,106			1,056			25		%	65		%
Securities sold under agreements to repurchase	1,901			1,175			1,815			1,081			89			62		%	NM
Trading liabilities	5,124			4,186			3,298			4,203			3,781			22		%	36		%
Other short-term borrowings	6,403			4,145			2,012			716			247			54		%	NM
Term borrowings	11,983			10,183			9,762			8,348			7,744			18		%	55		%
Interest expense	62,182			45,545			38,328			34,640			29,103			37		%	NM
Net interest income - tax equivalent basis	303,220			246,824			212,783			203,711			192,559			23		%	57		%
Fully taxable equivalent adjustment	(2,047		)	(4,736		)	(2,966		)	(3,010		)	(2,851		)	57		%	28		%
Net interest income	$	301,173		$	242,088		$	209,817		$	200,701		$	189,708		24		%	59		%

NM - Not meaningful

(a) Net interest income adjusted to a fully taxable equivalent (“FTE”) basis assuming a statutory federal income tax of 21 percent and, where applicable, state income taxes.

(b) 1Q18 includes three months of activity related to the CBF acquisition compared to one month of activity in 4Q17.

(d) 1Q18 decrease driven by the adoption of ASU 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities" which resulted in the reclassification of interest and dividend income on equity securities to noninterest income on a prospective basis. The remaining balance is primarily comprised of interest earned on SBA IO strips.

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

FHN CONSOLIDATED AVERAGE BALANCE SHEET: YIELDS AND RATES

Quarterly, Unaudited



	1Q18		4Q17		3Q17		2Q17		1Q17

Assets:
Earning assets (a)
Loans, net of unearned income (b)
Commercial loans	4.53	%	4.27	%	4.13	%	4.03	%	3.86	%
Consumer loans	4.48		4.33		4.23		4.21		4.13
Total loans, net of unearned income (c)	4.51		4.28		4.16		4.08		3.94
Loans held-for-sale	6.68		5.23		4.53		4.38		4.64
Investment securities:
U.S. government agencies	2.66		2.56		2.54		2.57		2.59
States and municipalities	3.37		7.04		—		—		9.33
Corporate bonds	4.54		4.74		5.25		5.25		5.25
Other (d)	27.65		3.96		3.67		3.26		3.03
Total investment securities	2.71		2.65		2.60		2.61		2.63
Trading securities	3.40		3.14		3.06		3.07		2.84
Other earning assets:
Federal funds sold	2.11		1.79		1.75		1.58		1.28
Securities purchased under agreements to resell	1.15		0.80		0.88		0.69		0.35
Interest-bearing cash	1.42		1.28		1.24		1.02		0.81
Total other earning assets	1.26		0.99		1.03		0.88		0.70
Interest income/total earning assets	4.13	%	3.87	%	3.76	%	3.59	%	3.37	%
Liabilities:
Interest-bearing liabilities:
Interest-bearing deposits:
Consumer interest	0.24	%	0.19	%	0.22	%	0.23	%	0.17	%
Commercial interest	0.89		0.78		0.69		0.62		0.51
Market-indexed (e)	1.47		1.23		1.16		0.94		0.73
Total interest-bearing deposits	0.64		0.54		0.51		0.47		0.39
Federal funds purchased	1.52		1.29		1.24		1.02		0.77
Securities sold under agreements to repurchase	1.02		0.78		1.06		0.70		0.09
Trading liabilities	2.53		2.24		2.19		2.21		2.39
Other short-term borrowings	1.53		1.32		1.22		1.30		1.24
Term borrowings (f)	3.93		3.63		3.51		3.23		2.98
Interest expense/total interest-bearing liabilities	0.92		0.82		0.80		0.72		0.60
Net interest spread	3.21	%	3.05	%	2.96	%	2.87	%	2.77	%
Effect of interest-free sources used to fund earning assets	0.22		0.22		0.23		0.20		0.15
Net interest margin	3.43	%	3.27	%	3.19	%	3.07	%	2.92	%

Yields are adjusted to a FTE basis assuming a statutory federal income tax rate of 21 percent and, where applicable, state income taxes.

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

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

(d) 1Q18 increase driven by the adoption of ASU 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities" which resulted in the reclassification of interest and dividend income on equity securities to noninterest income on a prospective basis. The remaining balance is primarily comprised of higher-yielding SBA IO strips.

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

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

FHN CAPITAL HIGHLIGHTS

Quarterly, Unaudited



																1Q18 Changes vs.
(Dollars and shares in thousands)	1Q18			4Q17			3Q17			2Q17			1Q17			4Q17		1Q17

Common equity tier 1 capital (a) (b)	$	2,991,223		$	2,962,155		$	2,477,210		$	2,418,578		$	2,409,219		1	%	24	%
Tier 1 capital (a) (b)	3,324,632			3,281,478			2,764,780			2,699,698			2,680,869			1	%	24	%
Total capital (a)	3,746,363			3,703,754			3,005,198			2,942,948			2,926,292			1	%	28	%

Risk-weighted assets (“RWA”) (a) (b)	33,299,500			33,373,877			24,678,030			24,566,487			23,623,224			*		41	%
Average assets for leverage (a) (b) (c)	39,126,765			31,824,751			28,793,816			28,793,889			28,805,253			23	%	36	%

Common equity tier 1 ratio (a) (b)	8.98		%	8.88		%	10.04		%	9.85		%	10.20		%
Tier 1 ratio (a) (b)	9.98		%	9.83		%	11.20		%	10.99		%	11.35		%
Total capital ratio (a)	11.25		%	11.10		%	12.18		%	11.98		%	12.39		%
Leverage ratio (a) (b) (d)	8.50		%	10.31		%	9.60		%	9.38		%	9.31		%

Total equity to total assets	11.30		%	11.06		%	9.73		%	9.63		%	9.25		%
Tangible common equity/tangible assets (“TCE/TA”) (e)	6.71		%	6.57		%	7.54		%	7.41		%	7.27		%
Period-end shares outstanding	327,194			326,736			234,231			234,135			233,883			*		40	%
Cash dividends declared per common share	$	0.12		$	0.09		$	0.09		$	0.09		$	0.09		33	%	33	%
Book value per common share	$	12.78		$	12.82		$	10.64		$	10.40		$	10.05
Tangible book value per common share (e)	$	7.97		$	8.01		$	9.45		$	9.20		$	9.14
Market capitalization (millions)	$	6,161.1		$	6,531.5		$	4,485.5		$	4,078.6		$	4,326.8

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

* Amount is less than one percent.

(a) Current quarter is an estimate.

(b) See Glossary of Terms for definition.

(c) 1Q18 increase driven by the average impact of three months of balances related to the CBF acquisition compared to one month in 4Q17.

(d) 1Q18 decrease is driven by an increase in average assets for leverage (ratio denominator) due to the timing of the CBF acquisition late in 4Q17 (full quarter average impact in 1Q18 compared to one month in 4Q17).

(e) TCE/TA and Tangible book value per common share are non-GAAP measures and are reconciled to Total equity to total assets (GAAP) and to Book value per common share (GAAP), respectively, in the Non-GAAP to GAAP reconciliation on page 21 of this financial supplement.

FHN BUSINESS SEGMENT HIGHLIGHTS

Quarterly, Unaudited



																1Q18 Changes vs.
(Thousands)	1Q18			4Q17			3Q17			2Q17			1Q17			4Q17			1Q17

Regional Banking
Net interest income	$	298,699		$	244,021		$	208,975		$	201,658		$	193,082		22		%	55		%
Noninterest income	78,853			70,526			64,370			64,740			58,978			12		%	34		%
Total revenues	377,552			314,547			273,345			266,398			252,060			20		%	50		%
Provision for loan losses	5,312			9,737			8,552			260			3,098			(45	)	%	71		%
Noninterest expense (a)	205,201			178,605			150,445			152,637			148,050			15		%	39		%
Income before income taxes	167,039			126,205			114,348			113,501			100,912			32		%	66		%
Provision for income taxes	39,362			43,899			41,143			41,015			36,476			(10	)	%	8		%
Net income	$	127,677		$	82,306		$	73,205		$	72,486		$	64,436		55		%	98		%

Fixed Income
Net interest income	$	8,463		$	5,906		$	5,985		$	4,985		$	1,156		43		%	NM
Noninterest income	45,605			55,250			55,803			55,207			50,823			(17	)	%	(10	)	%
Total revenues	54,068			61,156			61,788			60,192			51,979			(12	)	%	4		%
Noninterest expense	50,544			55,151			53,136			54,022			48,707			(8	)	%	4		%
Income before income taxes	3,524			6,005			8,652			6,170			3,272			(41	)	%	8		%
Provision for income taxes	742			1,971			2,970			1,941			1,018			(62	)	%	(27	)	%
Net income	$	2,782		$	4,034		$	5,682		$	4,229		$	2,254		(31	)	%	23		%

Corporate
Net interest income/(expense)	$	(13,190	)	$	(15,593	)	$	(13,646	)	$	(14,637	)	$	(13,771	)	15		%	4		%
Noninterest income (b)	9,479			6,711			(9,476		)	6,219			5,476			41		%	73		%
Total revenues	(3,711		)	(8,882		)	(23,122		)	(8,418		)	(8,295		)	58		%	55		%
Noninterest expense (c)	51,116			73,991			23,926			24,566			16,874			(31	)	%	NM
Loss before income taxes	(54,827		)	(82,873		)	(47,048		)	(32,984		)	(25,169		)	34		%	NM
Provision/ (benefit) for income taxes (d)	(12,444		)	37,202			(34,120		)	(35,574		)	(12,929		)	NM			4		%
Net income/(loss)	$	(42,383	)	$	(120,075	)	$	(12,928	)	$	2,590		$	(12,240	)	65		%	NM

Non-Strategic
Net interest income	$	7,201		$	7,754		$	8,503		$	8,695		$	9,241		(7	)	%	(22	)	%
Noninterest income	2,080			703			1,720			1,507			1,662			NM			25		%
Total revenues	9,281			8,457			10,223			10,202			10,903			10		%	(15	)	%
Provision/(provision credit) for loan losses	(6,312		)	(6,737		)	(8,552		)	(2,260		)	(4,098		)	6		%	(54	)	%
Noninterest expense (e)	6,404			38,923			9,362			(13,308		)	8,574			(84	)	%	(25	)	%
Income/(loss) before income taxes	9,189			(23,729		)	9,413			25,770			6,427			NM			43		%
Provision/(benefit) for income taxes	2,271			(9,083		)	3,603			9,871			2,489			NM			(9	)	%
Net income/(loss)	$	6,918		$	(14,646	)	$	5,810		$	15,899		$	3,938		NM			76		%

Total Consolidated
Net interest income	$	301,173		$	242,088		$	209,817		$	200,701		$	189,708		24		%	59		%
Noninterest income	136,017			133,190			112,417			127,673			116,939			2		%	16		%
Total revenues	437,190			375,278			322,234			328,374			306,647			16		%	43		%
Provision/(provision credit) for loan losses	(1,000		)	3,000			—			(2,000		)	(1,000		)	NM			*
Noninterest expense	313,265			346,670			236,869			217,917			222,205			(10	)	%	41		%
Income before income taxes	124,925			25,608			85,365			112,457			85,442			NM			46		%
Provision for income taxes	29,931			73,989			13,596			17,253			27,054			(60	)	%	11		%
Net income/(loss)	$	94,994		$	(48,381	)	$	71,769		$	95,204		$	58,388		NM			63		%

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

NM - Not meaningful

* Amount is less than one percent.


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


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


(c)	1Q18 and 4Q17 include $31.4 million and $46.7 million, respectively of acquisition-related expenses primarily associated with the CBF acquisition; 3Q17 and 2Q17 include $8.2 million and $6.4 million, respectively of acquisition-related expenses primarily associated with the CBF and Coastal acquisitions.


(d)	4Q17 increase primarily associated with the effects of the Tax Act; 4Q17, 3Q17 and 2Q17 include the impact of a favorable effective tax rate adjustment associated with the reversal of a capital loss deferred tax valuation allowance.


(e)	4Q17 includes $32.0 million of loss accruals related to legal matters; 3Q17 includes $3.6 million of loss accruals related to legal matters; 2Q17 includes a $21.7 million reversal of repurchase and foreclosure provision as a result of the settlements/ recoveries of certain repurchase claims.

FHN REGIONAL BANKING

Quarterly, Unaudited



																1Q18 Changes vs.
	1Q18			4Q17			3Q17			2Q17			1Q17			4Q17			1Q17

Income Statement (thousands)
Net interest income	$	298,699		$	244,021		$	208,975		$	201,658		$	193,082		22		%	55	%
Provision for loan losses	5,312			9,737			8,552			260			3,098			(45	)	%	71	%
Noninterest income:
NSF / Overdraft fees (a)	8,629			10,101			9,878			8,717			6,309			(15	)	%	37	%
Cash management fees	9,285			9,396			8,923			9,641			9,196			(1	)	%	1	%
Debit card income	3,588			3,685			3,635			3,655			3,405			(3	)	%	5	%
Other	8,416			5,694			4,185			4,421			4,324			48		%	95	%
Total deposit transactions and cash management	29,918			28,876			26,621			26,434			23,234			4		%	29	%
Brokerage, management fees and commissions	13,483			12,642			11,936			12,029			11,906			7		%	13	%
Trust services and investment management	7,292			7,131			6,968			7,713			6,680			2		%	9	%
Bankcard income	11,115			8,125			6,057			5,495			5,342			37		%	NM
Other service charges	4,636			3,109			2,613			2,740			2,632			49		%	76	%
Miscellaneous revenue (b)	12,409			10,643			10,175			10,329			9,184			17		%	35	%
Total noninterest income	78,853			70,526			64,370			64,740			58,978			12		%	34	%
Noninterest expense:
Employee compensation, incentives, and benefits	89,406			74,561			59,337			61,561			60,988			20		%	47	%
Other (c)	115,795			104,044			91,108			91,076			87,062			11		%	33	%
Total noninterest expense	205,201			178,605			150,445			152,637			148,050			15		%	39	%
Income before income taxes	$	167,039		$	126,205		$	114,348		$	113,501		$	100,912		32		%	66	%
PPNR (d)	172,351			135,942			122,900			113,375			104,010			27		%	66	%
Efficiency ratio (e)	54.35		%	56.78		%	55.04		%	57.38		%	58.74		%

Balance Sheet (millions)
Average loans	$	25,748		$	21,147		$	18,402		$	17,679		$	17,199		22		%	50	%
Average other earning assets	190			86			44			50			35			NM			NM
Total average earning assets	25,938			21,233			18,446			17,729			17,234			22		%	51	%
Total average deposits	27,120			22,382			20,066			20,131			19,652			21		%	38	%
Total period-end deposits	27,653			27,538			20,076			20,416			20,532			*			35	%
Total period-end assets	28,668			29,035			19,600			19,333			18,329			(1	)	%	56	%
Net interest margin (f)	4.70		%	4.64		%	4.55		%	4.62		%	4.60		%
Net interest spread	4.05			3.86			3.72			3.62			3.57
Loan average yield	4.41			4.15			4.00			3.88			3.78
Deposit average rate	0.36			0.29			0.28			0.26			0.21

Key Statistics
Financial center locations	345			347			163			163			162			(1	)	%	NM

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

NM - Not meaningful

* Amount is less than one percent


(a)	Variability is driven by changes in consumer behavior and seasonality.


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


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


(d)	Pre-provision net revenue is not a GAAP number but is used in regulatory stress test reporting. The presentation of PPNR in this Financial Supplement follows the regulatory definition.


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


(f)	Net interest margin is computed using total net interest income adjusted for FTE assuming a statutory federal income tax rate of 21 percent and, where applicable, state income taxes.

FHN FIXED INCOME

Quarterly, Unaudited



																1Q18 Changes vs.
	1Q18			4Q17			3Q17			2Q17			1Q17			4Q17			1Q17

Income Statement (thousands)
Net interest income (a)	$	8,463		$	5,906		$	5,985		$	4,985		$	1,156		43		%	NM
Noninterest income:
Fixed income product revenue	38,047			40,608			45,020			45,555			42,727			(6	)	%	(11	)	%
Other	7,558			14,642			10,783			9,652			8,096			(48	)	%	(7	)	%
Total noninterest income	45,605			55,250			55,803			55,207			50,823			(17	)	%	(10	)	%
Noninterest expense	50,544			55,151			53,136			54,022			48,707			(8	)	%	4		%
Income before income taxes	$	3,524		$	6,005		$	8,652		$	6,170		$	3,272		(41	)	%	8		%

Efficiency ratio (b)	93.48		%	90.18		%	86.00		%	89.75		%	93.71		%
Fixed income product average daily revenue	$	624		$	655		$	715		$	723		$	689		(5	)	%	(9	)	%

Balance Sheet (millions)
Average trading inventory (a)	$	1,710		$	1,437		$	1,122		$	1,281		$	927		19		%	84		%
Average loans held-for-sale (a)	487			363			443			220			7			34		%	NM
Average other earning assets	933			850			690			851			696			10		%	34		%
Total average earning assets	3,130			2,650			2,255			2,352			1,630			18		%	92		%
Total period-end assets	3,655			2,989			2,751			2,745			2,395			22		%	53		%
Net interest margin (c)	1.09		%	0.94		%	1.13		%	0.92		%	0.33		%

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

NM - Not meaningful

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

(b) Noninterest expense divided by total revenue.

(c) Net interest margin is computed using total net interest income adjusted for FTE assuming a statutory federal income tax rate of 21 percent and, where

applicable, state income taxes.

FHN CORPORATE

Quarterly, Unaudited



																1Q18 Changes vs.
	1Q18			4Q17			3Q17			2Q17			1Q17			4Q17			1Q17

Income Statement (thousands)
Net interest income/(expense)	$	(13,190	)	$	(15,593	)	$	(13,646	)	$	(14,637	)	$	(13,771	)	15		%	4		%
Noninterest income excluding securities gains/(losses) (a)	9,393			6,574			(9,482		)	6,200			5,432			43		%	73		%
Securities gains/(losses), net	86			137			6			19			44			(37	)	%	95		%
Noninterest expense (b)	51,116			73,991			23,926			24,566			16,874			(31	)	%	NM
Loss before income taxes	$	(54,827	)	$	(82,873	)	$	(47,048	)	$	(32,984	)	$	(25,169	)	34		%	NM

Average Balance Sheet (millions)
Average investment securities	$	4,859		$	4,273		$	3,959		$	3,950		$	3,931		14		%	24		%
Total earning assets	$	5,382		$	4,792		$	4,408		$	4,983		$	6,121		12		%	(12	)	%

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

NM - Not Meaningful

(a) 1Q18 includes a $3.3 million gain on the sale of a building; 4Q17 includes a $1.3 million gain related to BOLI policy benefits; 3Q17 includes a $14.3 million loss from the repurchase of equity securities previously included in a financing transaction.

(b) 1Q18 includes $31.4 million of acquisition-related expenses primarily associated with the CBF acquisition; 4Q17 includes $46.7 million of acquisition-related expenses primarily associated with the CBF acquisition and a $5.6 million charitable contribution to the First Tennessee Foundation, somewhat offset by $4.3 million of deferred compensation BOLI gains;3Q17 includes $8.2 million of acquisition-related expenses primarily associated with the CBF and Coastal acquisitions; 2Q17 includes $6.4 million of acquisition-related expenses primarily associated with the CBF and Coastal acquisitions and a $3.2 million charitable contribution to the First Tennessee Foundation, somewhat offset by $2.2 million of deferred compensation BOLI gains.

FHN NON-STRATEGIC

Quarterly, Unaudited



																					1Q18 Changes vs.
	1Q18				4Q17				3Q17				2Q17				1Q17				4Q17			1Q17

Income Statement (thousands)
Net interest income	$	7,201			$	7,754			$	8,503			$	8,695			$	9,241			(7	)	%	(22	)	%
Provision/(provision credit) for loan losses	(6,312		)		(6,737		)		(8,552		)		(2,260		)		(4,098		)		6		%	(54	)	%
Noninterest income	2,080				703				1,720				1,507				1,662				NM			25		%
Noninterest expense (a)	6,404				38,923				9,362				(13,308		)		8,574				(84	)	%	(25	)	%
Income/(loss) before income taxes	$	9,189			$	(23,729	)		$	9,413			$	25,770			$	6,427			NM			43		%

Average Balance Sheet (millions)
Loans	$	1,213			$	1,282			$	1,358			$	1,441			$	1,535			(5	)	%	(21	)	%
Other assets	71				73				73				81				81				(3	)	%	(12	)	%
Total assets	1,284				1,355				1,431				1,522				1,616				(5	)	%	(21	)	%
Net interest margin (b)	2.24			%	2.26			%	2.34			%	2.27			%	2.28			%
Efficiency ratio (c)	69.00			%	NM				91.58			%	NM				78.64			%

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

NM - Not meaningful

(a) 4Q17 includes $32.0 million of loss accruals related to legal matters;3Q17 includes $3.6 million of loss accrual related to legal matters; 2Q17 includes a $21.7 million reversal of repurchase and foreclosure provision as a result of the settlements/ recoveries of certain repurchase claims.

(b) Net interest margin is computed using total net interest income adjusted for FTE assuming a statutory federal income tax rate of 21 percent and, where applicable, state income taxes.

FHN ASSET QUALITY: CONSOLIDATED

Quarterly, Unaudited



																					1Q18 Changes vs.
(Dollars in thousands)	1Q18				4Q17				3Q17				2Q17				1Q17				4Q17	1Q17

Allowance for Loan Losses Walk-Forward
Beginning reserve	$	189,555			$	194,867			$	197,257			$	201,968			$	202,068			(3)%	(6)%
Provision/(provision credit) for loan losses	(1,000			)	3,000				—				(2,000			)	(1,000			)	NM	*
Charge-offs	(8,348			)	(17,481			)	(10,670			)	(9,830			)	(8,413			)	52%	1%
Recoveries	6,987				9,169				8,280				7,119				9,313				(24)%	(25)%
Ending balance	$	187,194			$	189,555			$	194,867			$	197,257			$	201,968			(1)%	(7)%
Reserve for unfunded commitments	4,613				5,079				4,372				5,554				5,284				(9)%	(13)%
Total allowance for loan losses plus reserve for unfunded commitments	$	191,807			$	194,634			$	199,239			$	202,811			$	207,252			(1)%	(7)%

Allowance for Loan Losses
Regional Banking	$	155,873			$	154,111			$	156,021			$	153,208			$	155,968			1%	*
Non-Strategic	31,321				35,444				38,846				44,049				46,000				(12)%	(32)%
Total allowance for loan losses	$	187,194			$	189,555			$	194,867			$	197,257			$	201,968			(1)%	(7)%

Nonperforming Assets
Regional Banking
Nonperforming loans	$	57,767			$	52,659			$	40,610			$	43,012			$	49,462			10%	17%
OREO (a)	27,806				34,844				2,848				3,266				4,422				(20)%	NM
Total Regional Banking	$	85,573			$	87,503			$	43,458			$	46,278			$	53,884			(2)%	59%
Non-Strategic
Nonperforming loans	$	72,124			$	75,803			$	82,203			$	84,959			$	92,409			(5)%	(22)%
Nonperforming loans held-for-sale after fair value adjustments	8,258				6,971				7,314				7,321				7,633				18%	8%
OREO (a)	4,569				4,722				5,029				3,772				5,837				(3)%	(22)%
Total Non-Strategic	$	84,951			$	87,496			$	94,546			$	96,052			$	105,879			(3)%	(20)%
Corporate
Nonperforming loans	$	2,140			$	2,157			$	2,173			$	1,819			$	1,521			(1)%	41%
Total nonperforming assets (a)	$	172,664			$	177,156			$	140,177			$	144,149			$	161,284			(3)%	7%

Net Charge-Offs
Regional Banking	$	3,550			$	11,647			$	5,739			$	3,020			$	1,211			(70)%	NM
Non-Strategic	(2,189			)	(3,335			)	(3,349			)	(309			)	(2,111			)	34%	(4)%
Total net charge-offs/(recoveries)	$	1,361			$	8,312			$	2,390			$	2,711			$	(900		)	(84)%	NM

Consolidated Key Ratios (b) (c)
30+ Delinq. % (d)	0.29		%		0.33		%		0.38		%		0.27		%		0.39		%
NPL %	0.48				0.47				0.62				0.65				0.75
NPA %	0.60				0.61				0.66				0.68				0.80
Net charge-offs %	0.02				0.15				0.05				0.06				NM
Allowance / loans % (e)	0.69				0.69				0.97				0.99				1.06
Allowance / NPL	1.42		x		1.45		x		1.56		x		1.52		x		1.41		x
Allowance / NPA	1.14		x		1.11		x		1.47		x		1.44		x		1.31		x
Allowance / net charge-offs	33.90		x		5.75		x		20.55		x		18.14		x		NM

Other
Loans past due 90 days or more and still accruing (f)	$	52,700			$	48,047			$	41,025			$	37,809			$	37,156			10%	42%
Guaranteed portion (f)	9,076				9,454				10,046				15,276				14,569				(4)%	(38)%
Period-end loans, net of unearned income (millions)	27,250				27,659				20,166				19,989				19,090				(1)%	43%

NM - Not meaningful

* Amount is less than one percent.

(a) Excludes OREO from government-insured mortgages.

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

(c) 4Q17 Asset Quality ratios were impacted by the addition of approximately $7.4 billion in loans as a result of the Capital Bank acquisition.

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

(e) The 4Q17 decrease in allowance to loans reflects the addition of loans acquired from Capital Bank at fair value which includes an estimate of life of loan credit losses.

(f) Includes loans held-for-sale.

FHN ASSET QUALITY: CONSOLIDATED

Quarterly, Unaudited



																1Q18 Changes vs.
	1Q18			4Q17			3Q17			2Q17			1Q17			4Q17	1Q17

Key Portfolio Details
C&I
Period-end loans ($ millions)	$	15,828		$	16,057		$	12,792		$	12,598		$	11,704		(1)%	35%
30+ Delinq. % (a) (b)	0.16		%	0.19		%	0.27		%	0.03		%	0.17		%
NPL %	0.18			0.19			0.15			0.20			0.26
Charge-offs % (qtr. annualized)	0.02			0.28			0.10			0.04			NM
Allowance / loans %	0.63		%	0.61		%	0.77		%	0.73		%	0.80		%
Allowance / net charge-offs	37.88		x	2.53		x	7.97		x	18.21		x	NM

Commercial Real Estate
Period-end loans ($ millions)	$	4,234		$	4,215		$	2,251		$	2,212		$	2,173		*	95%
30+ Delinq. % (a)	0.08		%	0.11		%	0.02		%	0.01		%	0.03		%
NPL %	0.02			0.03			0.07			0.07			0.11
Charge-offs % (qtr. annualized)	NM			NM			NM			NM			NM
Allowance / loans %	0.69		%	0.67		%	1.32		%	1.38		%	1.42		%
Allowance / net charge-offs	NM			NM			NM			NM			NM

Consumer Real Estate
Period-end loans ($ millions)	$	6,247		$	6,368		$	4,370		$	4,417		$	4,457		(2)%	40%
30+ Delinq. % (a)	0.57		%	0.65		%	0.74		%	0.81		%	0.86		%
NPL %	1.22			1.12			1.76			1.70			1.83
Charge-offs % (qtr. annualized)	NM			NM			NM			NM			NM
Allowance / loans %	0.52		%	0.59		%	0.94		%	1.04		%	1.11		%
Allowance / net charge-offs	NM			NM			NM			NM			NM

Permanent Mortgage
Period-end loans ($ millions)	$	380		$	399		$	403		$	408		$	409		(5)%	(7)%
30+ Delinq. % (a)	2.63		%	1.85		%	1.51		%	2.57		%	2.57		%
NPL %	6.65			6.61			6.81			6.81			7.05
Charge-offs % (qtr. annualized)	0.10			0.10			NM			0.35			NM
Allowance / loans %	4.07		%	3.90		%	3.90		%	4.02		%	3.88		%
Allowance / net charge-offs	40.18		x	37.67		x	NM			11.52		x	NM

Credit Card and Other
Period-end loans ($ millions)	$	561		$	620		$	350		$	354		$	347		(10)%	62%
30+ Delinq. % (a)	0.98		%	1.24		%	0.89		%	0.92		%	1.00		%
NPL %	0.18			0.03			0.04			0.04			0.04
Charge-offs % (qtr. annualized)	2.15			2.30			2.80			2.71			3.08
Allowance / loans %	1.73		%	1.61		%	2.95		%	3.38		%	3.58		%
Allowance / net charge-offs	0.76		x	0.99		x	1.04		x	1.24		x	1.16		x

NM - Not meaningful

* Amount is less than one percent.

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

(b) 3Q17 increase in delinquencies driven by 2 larger relationships, one of which is a purchased credit-impaired loan.

FHN ASSET QUALITY: REGIONAL BANKING

Quarterly, Unaudited



																1Q18 Changes vs.
	1Q18			4Q17			3Q17			2Q17			1Q17			4Q17	1Q17

Total Regional Banking
Period-end loans ($ millions)	$	26,020		$	26,359		$	18,788		$	18,529		$	17,537		(1)%	48%
30+ Delinq. % (a)	0.21		%	0.26		%	0.28		%	0.13		%	0.24		%
NPL %	0.22			0.20			0.22			0.23			0.28
Charge-offs % (qtr. annualized)	0.06			0.22			0.12			0.07			0.03
Allowance / loans %	0.60		%	0.58		%	0.83		%	0.83		%	0.89		%
Allowance / net charge-offs	10.82		x	3.34		x	6.85		x	12.65		x	31.75		x

Key Portfolio Details
C&I
Period-end loans ($ millions)	$	15,410		$	15,639		$	12,373		$	12,178		$	11,284		(1)%	37%
30+ Delinq. % (a) (b)	0.16		%	0.20		%	0.28		%	0.03		%	0.18		%
NPL %	0.16			0.18			0.13			0.17			0.24
Charge-offs % (qtr. annualized)	0.02			0.29			0.10			0.04			NM
Allowance / loans %	0.64		%	0.62		%	0.78		%	0.75		%	0.81		%
Allowance / net charge-offs	37.18		x	2.49		x	7.83		x	17.85		x	NM

Commercial Real Estate
Period-end loans ($ millions)	$	4,234		$	4,215		$	2,251		$	2,212		$	2,173		*	95%
30+ Delinq. % (a)	0.08		%	0.11		%	0.02		%	0.01		%	0.03		%
NPL %	0.02			0.03			0.07			0.07			0.11
Charge-offs % (qtr. annualized)	NM			NM			NM			NM			NM
Allowance / loans %	0.69		%	0.67		%	1.32		%	1.38		%	1.42		%
Allowance / net charge-offs	NM			NM			NM			NM			NM

Consumer Real Estate
Period-end loans ($ millions)	$	5,707		$	5,774		$	3,714		$	3,695		$	3,655		(1)%	56%
30+ Delinq. % (a)	0.38		%	0.40		%	0.38		%	0.46		%	0.48		%
NPL %	0.53			0.39			0.61			0.54			0.55
Charge-offs % (qtr. annualized)	NM			NM			0.04			NM			NM
Allowance / loans %	0.27		%	0.28		%	0.46		%	0.48		%	0.53		%
Allowance / net charge-offs	NM			NM			11.04		x	NM			NM

Credit Card, Permanent Mortgage, and Other
Period-end loans ($ millions)	$	669		$	731		$	450		$	444		$	425		(8)%	57%
30+ Delinq. % (a)	0.88		%	1.10		%	0.85		%	0.81		%	0.90		%
NPL %	0.22			0.07			0.10			0.09			0.09
Charge-offs % (qtr. annualized)	1.93			1.83			2.19			2.21			2.55
Allowance / loans %	1.82		%	1.70		%	2.79		%	3.13		%	3.36		%
Allowance / net charge-offs	0.90		x	1.25		x	1.27		x	1.44		x	1.33		x

ASSET QUALITY: CORPORATE

Permanent Mortgage
Period-end loans ($ millions)	$	49		$	53		$	58		$	63		$	67		(8)%	(27)%
30+ Delinq. % (a)	5.51		%	3.98		%	4.22		%	6.52		%	4.25		%
NPL %	4.41			4.03			3.75			2.90			2.25
Charge-offs % (qtr. annualized)	NM			NM			NM			NM			NM
Allowance / loans %	NM			NM			NM			NM			NM
Allowance / net charge-offs	NM			NM			NM			NM			NM

NM - Not meaningful

* Amount is less than one percent.

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

(b) 3Q17 increase in delinquencies driven by 2 larger relationships, one of which is a purchased credit-impaired loan.

FHN ASSET QUALITY: NON-STRATEGIC

Quarterly, Unaudited



																1Q18 Changes vs.
	1Q18			4Q17			3Q17			2Q17			1Q17			4Q17	1Q17

Total Non-Strategic
Period-end loans ($ millions)	$	1,181		$	1,247		$	1,320		$	1,397		$	1,486		(5)%	(21)%
30+ Delinq. % (a)	1.80		%	1.85		%	1.62		%	1.79		%	1.89		%
NPL %	6.10			6.08			6.23			6.08			6.22
Charge-offs % (qtr. annualized)	NM			NM			NM			NM			NM
Allowance / loans %	2.65		%	2.84		%	2.94		%	3.15		%	3.10		%
Allowance / net charge-offs	NM			NM			NM			NM			NM

Key Portfolio Details
Commercial
Period-end loans ($ millions)	$	418		$	418		$	419		$	420		$	420		*	*
30+ Delinq. % (a)	—		%	—		%	—		%	—		%	—		%
NPL %	0.72			0.73			0.74			0.95			0.97
Charge-offs % (qtr. annualized)	—			NM			NM			NM			NM
Allowance / loans %	0.30		%	0.33		%	0.32		%	0.34		%	0.35		%
Allowance / net charge-offs	NM			NM			NM			NM			NM

Consumer Real Estate
Period-end loans ($ millions)	$	540		$	594		$	656		$	722		$	802		(9)%	(33)%
30+ Delinq. % (a)	2.64		%	3.06		%	2.80		%	2.62		%	2.60		%
NPL %	8.59			8.23			8.26			7.64			7.65
Charge-offs % (qtr. annualized)	NM			NM			NM			NM			NM
Allowance / loans %	3.17		%	3.53		%	3.66		%	3.90		%	3.80		%
Allowance / net charge-offs	NM			NM			NM			NM			NM

Permanent Mortgage
Period-end loans ($ millions)	$	217		$	229		$	239		$	249		$	258		(5)%	(16)%
30+ Delinq. % (a)	3.16		%	2.12		%	1.20		%	2.38		%	2.78		%
NPL %	10.43			10.40			10.39			10.30			10.45
Charge-offs % (qtr. annualized)	0.17			0.18			NM			0.56			NM
Allowance / loans %	5.93		%	5.70		%	5.62		%	5.80		%	5.45		%
Allowance / net charge-offs	33.55		x	31.54		x	NM			10.13		x	NM

Other Consumer
Period-end loans ($ millions)	$	6		$	6		$	6		$	6		$	6		*	*
30+ Delinq. % (a)	1.61		%	0.95		%	1.44		%	1.95		%	1.84		%
NPL %	—			1.89			1.92			1.93			1.90
Charge-offs % (qtr. annualized)	NM			1.90			1.14			NM			NM
Allowance / loans %	1.28		%	1.36		%	0.69		%	0.35		%	0.08		%
Allowance / net charge-offs	NM			0.71		x	0.60		x	NM			NM

NM - Not meaningful

* Amount is less than one percent.

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

FHN NON-GAAP TO GAAP RECONCILIATION

Quarterly, Unaudited



(Dollars and shares in thousands, except per share data)	1Q18			4Q17				3Q17			2Q17			1Q17

Tangible Common Equity (Non-GAAP)
(A) Total equity (GAAP)	$	4,571,918		$	4,580,488			$	2,883,551		$	2,826,888		$	2,740,460
Less: Noncontrolling interest (a)	295,431			295,431				295,431			295,431			295,431
Less: Preferred stock (a)	95,624			95,624				95,624			95,624			95,624
(B) Total common equity	$	4,180,863		$	4,189,433			$	2,492,496		$	2,435,833		$	2,349,405
Less: Intangible assets (GAAP) (b)	1,572,916			1,571,242				279,492			281,456			211,156
(C) Tangible common equity (Non-GAAP)	$	2,607,947		$	2,618,191			$	2,213,004		$	2,154,377		$	2,138,249

Tangible Assets (Non-GAAP)
(D) Total assets (GAAP)	$	40,462,585		$	41,423,388			$	29,622,636		$	29,369,956		$	29,618,600
Less: Intangible assets (GAAP) (b)	1,572,916			1,571,242				279,492			281,456			211,156
(E) Tangible assets (Non-GAAP)	$	38,889,669		$	39,852,146			$	29,343,144		$	29,088,500		$	29,407,444

Average Tangible Common Equity (Non-GAAP)
(F) Average total equity (GAAP)	$	4,573,706		$	3,506,165			$	2,866,757		$	2,778,169		$	2,722,668
Less: Average noncontrolling interest (a)	295,431			295,431				295,431			295,431			295,431
Less: Average preferred stock (a)	95,624			95,624				95,624			95,624			95,624
(G) Total average common equity	$	4,182,651		$	3,115,110			$	2,475,702		$	2,387,114		$	2,331,613
Less: Average intangible assets (GAAP) (b)	1,568,029			726,958				280,575			281,326			211,757
(H) Average tangible common equity (Non-GAAP)	$	2,614,622		$	2,388,152			$	2,195,127		$	2,105,788		$	2,119,856

Annualized Net Income/(loss) Available to Common Shareholders
(I) Net income /(loss) available to common shareholders (annualized) (GAAP)	$	367,531		$	(209,641	)		$	267,148		$	364,206		$	219,073

Period-end Shares Outstanding
(J) Period-end shares outstanding	327,194			326,736				234,231			234,135			233,883

Ratios
(I)/(G) Return on average common equity (“ROE”) (GAAP)	8.79		%	(6.73		)	%	10.79		%	15.26		%	9.40		%
(I)/(H) Return on average tangible common equity (“ROTCE”) (Non-GAAP)	14.06		%	(8.78		)	%	12.17		%	17.30		%	10.33		%
(A)/(D) Total equity to total assets (GAAP)	11.30		%	11.06			%	9.73		%	9.63		%	9.25		%
(C)/(E) Tangible common equity to tangible assets (“TCE/TA”) (Non-GAAP)	6.71		%	6.57			%	7.54		%	7.41		%	7.27		%
(B)/(J) Book value per common share (GAAP)	$	12.78		$	12.82			$	10.64		$	10.40		$	10.05
(C)/(J) Tangible book value per common share (Non-GAAP)	$	7.97		$	8.01			$	9.45		$	9.20		$	9.14

(a) Included in Total equity on the Consolidated Balance Sheet.

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

FHN GLOSSARY OF TERMS

Average Assets for Leverage: The amount of assets a company uses to calculate the leverage ratio, which includes average total assets less disallowed portions of goodwill, other intangibles, and deferred tax assets, as well as certain other regulatory adjustments made to tier 1 capital.

Common Equity Tier 1 Ratio: Ratio consisting of common equity adjusted for certain unrealized gains/(losses) on available-for-sale securities, less disallowed portions of goodwill, other intangibles, and deferred tax assets as well as certain other regulatory deductions divided by risk-weighted assets.

Core Businesses: Management considers regional banking, fixed income, and corporate as FHN’s core businesses. Non-strategic has legacy assets and operations that are being wound down.

Fully Taxable Equivalent (“FTE”): Reflects the amount of tax-exempt income adjusted to a level that would yield the same after-tax income had that income been subject to taxation.

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

Risk-Weighted Assets: A regulatory risk-based calculation that takes into account the broad differences in risks among a banking organization’s assets and off-balance sheet financial instruments.

Tier 1 Capital Ratio: Ratio consisting of shareholders’ equity adjusted for certain unrealized gains/(losses) on available-for-sale securities, plus qualifying portions of noncontrolling interests, less disallowed portions of goodwill, other intangible assets, and deferred tax assets as well as certain other regulatory deductions divided by risk-weighted assets.

Troubled Debt Restructuring (“TDR”): A restructuring of debt whereby a creditor for economic or legal reasons related to the borrower’s financial difficulties grants a concession to the borrower that it would not otherwise consider. Such concession is granted in an attempt to protect as much of the creditor’s investment as possible by increasing the probability of repayment.

Key Ratios

Return on Average Assets: Ratio is annualized net income to average total assets.

Return on Average Common Equity: Ratio is annualized net income available to common shareholders to average common equity.

Return on Average Tangible Common Equity: Ratio is annualized net income available to common shareholders to average tangible common equity.

Fee Income to Total Revenue: Ratio is fee income excluding securities gains/(losses) to total revenue excluding securities gains/(losses).

Efficiency Ratio: Ratio is noninterest expense to total revenue excluding securities gains/(losses).

Leverage Ratio: Ratio is tier 1 capital to average assets for leverage.

Asset Quality - Consolidated Key Ratios

NPL %: Ratio is nonperforming loans in the loan portfolio to total period-end loans.

NPA %: Ratio is nonperforming assets related to the loan portfolio to total period-end loans plus foreclosed real estate and other assets.

Net charge-offs %: Ratio is annualized net charge-offs to total average loans.

Allowance / loans: Ratio is allowance for loan losses to total period-end loans.

Allowance / NPL: Ratio is allowance for loan losses to nonperforming loans in the loan portfolio.

Allowance / NPA: Ratio is allowance for loan losses to nonperforming assets related to the loan portfolio.

Allowance / charge-offs: Ratio is allowance for loan losses to annualized net charge-offs.

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