National Commerce Financial (NCF) 425 Business combination disclosure

Filed by National Commerce Financial Corporation

Pursuant to Rule 425 under the Securities Act of

1933, as amended and deemed filed under Rule

14a-12 under the Securities Exchange Act of 1934,

as amended

Subject Company: National Commerce Financial Corporation

Commission File Number: 333-116112

ON JULY 15, 2004, NATIONAL COMMERCE FINANCIAL CORPORATION ISSUED THE FOLLOWING PRESS RELEASE RELATED TO ITS RESULTS OF OPERATIONS FOR ITS SECOND FISCAL QUARTER OF 2004:

One Commerce Square

Memphis, TN 38150

NEWS RELEASE

For Immediate Release

Investor Relations Contact:

Tim Schools

901.523.3087

Media Contact:

Eileen Sarro

901.523.3605

National Commerce Financial Reports Second Quarter Earnings

Financial Highlights

• Operating revenues increased 22.8 percent annualized versus 1Q04

• Period-end total portfolio loans increased 23.2 percent

• Period-end non-interest-bearing deposits increased 23.2 percent

• Operating non-interest revenues increased 53.2 percent

• Net interest margin stable at 3.83 percent

• Cash operating efficiency ratio improved to 46.68 percent from 48.08 percent in 1Q04

• Net charge-off ratio improved to .23 percent annualized

MEMPHIS, Tennessee, (July 15, 2004) — National Commerce Financial Corporation (NYSE: NCF) today announced that second quarter 2004 net income, including merger expenses of $7.7 million after-tax or $.04 per diluted share related to NCF’s previously-announced merger with SunTrust Banks, Inc.

(NYSE: STI), was $85.1 million or $.41 per diluted share, compared to $71.5 million or $.35 per diluted share in the second quarter of 2003 and $90.2 million or $.44 per diluted share in the first quarter of 2004.

“I am very pleased with the strength and quality of National Commerce’s second quarter results,” said William R. Reed Jr., president and chief executive officer of NCF. “Operating revenue growth was strong, led by terrific loan and fee income growth, replacing first quarter’s unusually high level of investment securities gains. Expenses were down in personnel and most other major categories, allowing our cash operating efficiency ratio to improve to 46.68 percent. Asset quality remains best in class and our balance sheet is well positioned to benefit from an expected slow rise in rates.”

“Importantly, our earnings per share were negatively impacted by an approximate 2.8 million increase in diluted shares outstanding, as a significantly higher share price resulting from the recently announced merger with SunTrust increased stock option activity and halted our normal share repurchase program,” Reed added. “This increase negatively impacted our reported earnings by approximately one penny per share. As the economy continues to improve, the investments we are making in our existing markets as well as our newest de novo initiatives will provide continued momentum throughout 2004 and into 2005.”

For the first six months of 2004, net income, including the previously mentioned NCF/SunTrust merger-related expenses, was $175.3 million or $.85 per diluted share, compared to $135.6 million or $.66 per diluted share during the same period of 2003.

OPERATING REVENUES

Operating revenues increased 6.9 percent over the second quarter of 2003 and 22.8 percent annualized on a sequential-quarter basis. The increase from first quarter 2004 was the result of a 6.0 percent annualized rise in taxable equivalent net interest income and a 53.2 percent annualized increase in operating non-interest revenues. Taxable equivalent net interest income benefited from an 8.8 percent annualized increase in average earning assets, driven by a 16.0 percent increase in average total portfolio loans. The Company continues to reduce the size of the investment securities portfolio as strong loan growth continues. Loan production during the second quarter accelerated as period-end total portfolio loan growth increased 23.2 percent annualized over first quarter end. Growth continues to be diversified across all geographies and product categories.

Period-end Total Portfolio Loans

($ in thousands)	2Q04	1Q04	2Q03	3-Month Annualized Growth %		12-Month Growth %
Commercial	7,977,373	7,700,252	7,289,501	14.4	%	9.4	%
Consumer	5,993,764	5,502,198	4,911,810	35.7	%	22.0	%
Other	220,133	216,117	210,135	7.4	%	4.8	%
Total NCF	14,191,270	13,418,567	12,411,446	23.2	%	14.3	%
First Market	651,317	606,802	533,268	29.3	%	22.1	%

The sequential quarter increase in operating non-interest revenues was attributable to double-digit annualized growth in service charges on deposits, other service charges, mortgage banking, and broker/dealer. During the quarter, the Company realized a gain of $3.3 million, before related incentives of approximately $.7 million, on the sale of mortgage servicing rights that the Company historically sells on a flow basis but had chosen to hold beginning in the third quarter of 2003 due to unusually low market values. The Company has resumed quarterly mortgage servicing sales which will provide anticipated revenues of $1 million each quarter. Additionally, the Company will benefit from lower amortization expense of mortgage servicing rights totaling approximately $1.2 million each quarter going forward.

Operating revenues, operating non-interest revenues and taxable equivalent net interest income, are non-GAAP financial measures, reconciliations of which to comparable GAAP measures are included on pages 20 through 24 of the financial tables supplementing this release.

NET INTEREST MARGIN

The net interest margin percentage for the second quarter of 2004 declined 3 basis points to 3.83 percent from 3.86 percent in the first quarter of 2004 as the earning-asset yield fell 6 basis points and the interest- bearing liability rate fell 3 basis points. The Company remains optimistic that it is well positioned to benefit from a continued gradual increase in interest rates.

Asset Yields/Funding Costs

	2Q04		1Q04		2Q03
Investment Securities	4.78	%	4.82	%	4.84	%
Total Loans	5.46	%	5.52	%	6.05	%
Earning Assets	5.16	%	5.22	%	5.58	%
Total Interest-bearing Deposits	1.43	%	1.48	%	1.74	%
Total Interest-bearing Liabilities	1.58	%	1.61	%	2.02	%
Total Funding	1.33	%	1.36	%	1.72	%
Net Interest Margin	3.83	%	3.86	%	3.86	%

ASSET QUALITY

Net charge-offs were .23 percent annualized of average total portfolio loans in second quarter of 2004, an improvement from .28 percent annualized of average loans in the first quarter of 2004. The non-performing asset ratio at June 30, 2004, also improved to .46 percent, down from .48 percent at March 31, 2004. Non-performing assets at period end included $37.6 million of non-performing loans, $22.6 million of foreclosed real estate, and $5.1 million of other repossessed assets.

The allowance for loan losses at June 30, 2004, increased $5.1 million to $178.4 million or 1.26 percent of end-of-period total portfolio loans, from $173.4 million or 1.29 percent at March 31, 2004. The percentage coverage of period-end total portfolio loans declined on a sequential quarter in order to maintain the unallocated reserve and to reflect the continued improvement in the Company’s asset quality measures and a growing unallocated reserve. Additionally, coverage levels of net charge-offs and non-performing loans improved to 5.69 times and 4.74 times, respectively, and remain significantly above industry levels.

Asset Quality Measures

	2Q04			1Q04			2Q03
Net Charge-offs (annualized)		.23	%		.28	%		.29	%
Non-performing Assets		.46	%		.48	%		.53	%
Loan Loss Allowance ($ million)	$	178.4		$	173.4		$	167.3
Loan Loss Allowance %		1.26	%		1.29	%		1.35	%
Allowance Coverage to Net Charge-offs (annualized)		5.69	x		4.71	x		4.69	x
Allowance Coverage to Non-performing Loans		4.74	x		4.99	x		4.94	x

OPERATIONAL EFFICIENCY

Results from the Company’s previously announced efficiency project became evident in the second quarter as the cash operating efficiency ratio improved 140 basis points to 46.68 percent from 48.08 percent in the first quarter of this year and 280 basis points from 49.48 percent in the second quarter of 2003. While operating revenues improved over the first quarter of this year, progress was also made in most of the major expense categories. Personnel, occupancy, and equipment each declined or were essentially flat versus the prior quarter. Other expense increased $4.7 million, with the majority of the increase occurring in discretionary areas such as advertising, charitable contributions, and marketing.

With the announcement of the NCF/SunTrust merger, the agreement with the consultant utilized to facilitate the efficiency project has been terminated which resulted in an expense of $.6 million included in the merger-related expenses. Additionally, the second quarter included expenses of $2.1 million related to the project. However, the Company’s effort to improve operational efficiency remains a top initiative and now has become a major responsibility of the NCF/SunTrust merger integration teams. Benefits to the bottom line are anticipated to continue throughout this year and into 2005.

Cash Operating Efficiency Ratios

($ in thousands)	2Q04			1Q04			2Q03
Banking Operating Revenues	$	262,508		$	248,757		$	245,954
Banking Cash Operating Non-interest Expense	$	110,677		$	109,213		$	111,313
Banking Cash Operating Efficiency Ratio		42.16	%		43.90	%		45.26	%
Financial Enterprise Operating Revenues	$	63,650		$	60,070		$	59,501
Financial Enterprise Cash Operating Non-interest Expense	$	42,591		$	40,295		$	40,893
Financial Enterprise Cash Operating Efficiency Ratio		66.91	%		67.08	%		68.73	%
NCF Operating Revenues	$	324,233		$	306,863		$	303,357
NCF Cash Operating Non-interest Expense	$	151,343		$	147,544		$	150,108
NCF Cash Operating Efficiency Ratio		46.68	%		48.08	%		49.48	%

DE NOVO EXPANSION

The Company continues to invest in infrastructure and bankers across its footprint. Each of the de novo expansion initiatives experienced another strong quarter of growth with Asheville/Savannah, acquired from Wachovia; Atlanta, First Market Bank, and the pilot Wal-Mart Money Centers each growing end-of-period loan balances by double digits and at a pace faster than NCF as a whole.

De Novo Market Period End Balances

($ in thousands)	2Q04	1Q04	2Q03	3-Month Annualized Growth %		12-Month Growth %
Total Portfolio Loans
Asheville/Savannah	429,041	399,065	320,854	30.0	%	33.7	%
Atlanta	400,291	335,304	150,790	77.5	%	165.5	%
Wal-Mart Money Centers	83,453	78,008	55,171	27.9	%	51.3	%
Total NCF	14,191,270	13,418,567	12,411,446	23.2	%	14.3	%
First Market	651,317	606,802	533,268	29.3	%	22.1	%
Deposits
Asheville/Savannah	637,209	648,224	627,466	-6.8	%	1.6	%
Atlanta	571,013	555,857	382,006	10.9	%	49.5	%
Wal-Mart Money Centers	518,402	497,244	403,573	17.0	%	28.5	%
Total NCF	16,014,465	15,790,968	15,446,201	5.7	%	3.7	%
First Market	912,320	907,084	885,047	2.3	%	3.1	%

During the quarter, the Company opened a total of nine traditional and eight in-store locations. Of the total, seven traditional locations were opened in Atlanta and the proposed remaining build out is now on hold as NCF and SunTrust evaluate overlap in their respective markets. The Company’s commitment to its partnership with Wal-Mart continues, with the Company having opened five additional locations in the second quarter of 2004 and planning to open an additional 10 in the second half of 2004.

Supplemental financial tables are available on the Company’s website atwww.ncfcorp.com/releases.cfm.

ABOUT NCF

National Commerce Financial Corporation, headquartered in Memphis, Tennessee, is a sales and marketing organization that delivers select financial and consulting services through a national network of banking and non-banking affiliates. With $24 billion in assets, NCF operates almost 500 branches in 14 of the nation’s fastest growing metropolitan areas throughout the southeast.

NON-GAAP FINANCIAL INFORMATION

This press release contains financial information determined by methods other than in accordance with generally accepted accounting principles (GAAP). NCF’s management uses these non-GAAP measures in their analysis of the Company’s performance. These measures, reconciled on pages 20 through 24 of the quarter’s supplemental financial tables, adjust GAAP performance measures to exclude the effects of unusual litigation-related expenses, merger-related expenses, and employment contract terminations as well as the amortization of core deposit intangibles. These non-GAAP measures may also exclude other significant gains or losses that are unusual in nature and not considered part of the core operations of the Company. Since these items and their impact on NCF’s performance are difficult to predict, management believes presentations of financial measures excluding the impact of these items provide useful supplemental information that is essential to a proper understanding of the operating results of NCF’s core businesses. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

FORWARD-LOOKING STATEMENTS

These statements constitute forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995), which involve significant risks and uncertainties. A variety of factors could cause actual results and experience to differ materially from the anticipated results or other expectations expressed in such forward-looking statements. NCF does not assume any obligation to update these forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements. Factors that might cause such a difference include, but are not limited to competition from both financial and non-financial institutions; changes in interest rates, deposit flows, loan demand and real estate values; efficiencies and savings resulting from the efficiency project are not achieved due to variances in the timing of execution of the project and other factors outside the Company’s control; changes in legislation or regulation; consummation of our pending merger; changes in accounting principles, policies or guidelines; the timing and occurrence (or non-occurrence) of transactions and events that may be subject to circumstances beyond the control of NCF; and other economic, competitive, governmental, regulatory and technological factors affecting NCF specifically or the banking industry or economy generally.

###

NATIONAL COMMERCE FINANCIAL CORPORATION

Current Quarter Financial Highlights

(In Thousands Except Share and Per Share Data)

	Three Months Ended						Three Months Ended
	6/30/2004			3/31/2004	% Change Fav/(Unfav)		6/30/2004		6/30/2003	% Change Fav/(Unfav)
Earnings and Earnings Per Share
Revenues (TE)	$	325,013		317,826	2.3		325,013		305,817	6.3
Net income		85,091		90,244	(5.7	)	85,091		71,507	19.0
Average basic shares outstanding		204,340,479		204,978,998			204,340,479		204,628,675
Average diluted shares outstanding		206,736,883		207,082,844			206,736,883		205,700,819
Basic EPS	$	.42		.44	(4.5	)	.42		.35	20.0
Diluted EPS		.41		.44	(6.8	)	.41		.35	17.1
Net income, excluding after-tax merger-related expenses (1)	$	92,801		90,244	2.8		92,801		71,507	29.8
Basic EPS, excluding after-tax merger-related expenses		.45		.44	2.3		.45		.35	28.6
Diluted EPS, excluding after-tax merger-related expenses		.45		.44	2.3		.45		.35	28.6
Asset Quality Ratios (2)
Loan loss allowance to loans outstanding		1.26	%	1.29			1.26		1.35
Net loans charged-off (annualized) to average loans		.23		.28			.23		.29
Nonperforming assets to loans plus foreclosed real estate and other repossessed assets		.46		.48			.46		.53
Loan loss allowance to net charge-offs (annualized)		5.69	x	4.71			5.69		4.69
Loan loss allowance to nonperforming loans		4.74		4.99			4.74		4.94
Selected Average Balances
Assets	$	23,741,890		23,144,064	2.6		23,741,890		22,173,395	7.1
Loans		13,766,675		13,239,512	4.0		13,766,675		12,220,225	12.7
Investment securities (3)		6,406,063		6,642,411	(3.6	)	6,406,063		6,674,537	(4.0	)
Core deposits		13,390,624		13,244,835	1.1		13,390,624		13,056,980	2.6
Stockholders’ equity		2,826,271		2,782,955	1.6		2,826,271		2,702,937	4.6
Selected Period End Balances
Assets	$	24,044,117		23,038,522	4.4		24,044,117		22,679,991	6.0
Loans		14,191,270		13,418,567	5.8		14,191,270		12,411,446	14.3
Investment securities		6,257,308		6,217,177	.6		6,257,308		6,756,217	(7.4	)
Core deposits		13,549,994		13,469,295	.6		13,549,994		13,382,416	1.3
Stockholders’ equity		2,782,112		2,798,939	(.6	)	2,782,112		2,720,435	2.3
Shares outstanding		205,003,949		203,911,127			205,003,949		204,384,778
Number of banking offices		475		459			475		455
Number of ATMs		529		521			529		510
Number of full-time equivalent employees (FTE)		5,450		5,403			5,450		5,582
Capital Ratios
Period-end tangible equity to period-end tangible assets (4)		6.78	%	7.11			6.78		6.70
Risk-based capital ratios:
Tier 1 capital		10.84	E	10.86			10.84	E	10.69
Total capital		11.88	E	11.92			11.88	E	11.79
Leverage ratio		8.23	E	8.13			8.23	E	7.81

E - Estimated

(1) See reconcilement of GAAP net income to net income excluding merger-related expenses, a non-GAAP measure, on page 24.

(2) Ratios computed excluding loans held for sale.

(3) Average balances exclude the mark-to-market adjustment on available for sale securities under Statement of Financial Accounting Standards No. 115.

(4) Tangible equity and tangible assets are computed by subtracting the sum of goodwill and core deposit intangibles from total equity and total assets, respectively.

NATIONAL COMMERCE FINANCIAL CORPORATION

Five Quarter Financial Highlights

(In Thousands Except Share and Per Share Data)

	Three Months Ended
	6/30/2004			3/31/2004	12/31/2003	9/30/2003	6/30/2003
Earnings and Earnings Per Share
Revenues (TE and excluding discontinued op.)	$	325,013		317,826	314,096	313,520	305,817
Net income		85,091		90,244	90,268	85,809	71,507
Average basic shares outstanding		204,340,479		204,978,998	204,953,486	204,609,099	204,628,675
Average diluted shares outstanding		206,736,883		207,082,844	207,009,648	206,005,174	205,700,819
Basic EPS	$	.42		.44	.44	.42	.35
Diluted EPS		.41		.44	.44	.42	.35
Net income, excluding after-tax merger-related expenses (1)	$	92,801		90,244	90,268	85,809	71,507
Basic EPS, excluding after-tax merger-related expenses		.45		.44	.44	.42	.35
Diluted EPS, excluding after-tax merger-related expenses		.45		.44	.44	.42	.35
Asset Quality Ratios (2)
Loan loss allowance to total loans		1.26	%	1.29	1.31	1.34	1.35
Net loans charged-off (annualized) to average loans		.23		.28	.43	.31	.29
Nonperforming assets to loans plus foreclosed real estate and other repossessed assets		.46		.48	.49	.52	.53
Loan loss allowance to net charge-offs (annualized)		5.69	x	4.71	3.04	4.30	4.69
Loan loss allowance to nonperforming loans		4.74		4.99	5.55	4.79	4.94
Selected Average Balances
Assets	$	23,741,890		23,144,064	22,845,698	22,727,299	22,173,395
Loans		13,766,675		13,239,512	12,992,875	12,736,334	12,220,225
Investment securities (3)		6,406,063		6,642,411	6,626,168	6,688,614	6,674,537
Core deposits		13,390,624		13,244,835	13,143,769	13,180,992	13,056,980
Stockholders’ equity		2,826,271		2,782,955	2,745,465	2,734,081	2,702,937
Selected Period End Balances
Assets	$	24,044,117		23,038,522	23,016,916	22,890,089	22,679,991
Loans		14,191,270		13,418,567	13,034,948	12,897,774	12,411,446
Investment securities		6,257,308		6,217,177	6,619,000	6,702,885	6,756,217
Core deposits		13,549,994		13,469,295	13,342,851	13,182,330	13,382,416
Stockholders’ equity		2,782,112		2,798,939	2,781,186	2,729,403	2,720,435
Shares outstanding		205,003,949		203,911,127	205,136,649	204,808,440	204,384,778
Number of banking offices		475		459	451	444	455
Number of ATMs		529		521	521	510	510
Number of full-time equivalent employees (FTE)		5,450		5,403	5,441	5,458	5,582
Capital Ratios
Period-end tangible equity to period-end tangible assets (4)		6.78	%	7.11	7.00	6.74	6.70
Risk-based capital ratios:
Tier 1 capital		10.84	E	10.86	11.03	10.81	10.69
Total capital		11.88	E	11.92	12.10	11.90	11.79
Leverage ratio		8.23	E	8.13	8.17	7.93	7.81

E - Estimated

(1) See reconcilement of GAAP net income to net income excluding merger-related expenses, a non-GAAP measure, on page 24.

(2) Ratios computed excluding loans held for sale.

(3) Average balances exclude the mark-to-market adjustment on available for sale securities under Statement of Financial Accounting Standards No. 115.

(4) Tangible equity and tangible assets are computed by subtracting the sum of goodwill and core deposit intangibles from total equity and total assets, respectively.

NATIONAL COMMERCE FINANCIAL CORPORATION

Year to Date Financial Highlights

(In Thousands Except Share and Per Share Data)

	Six Months Ended				$ Change Fav/(Unfav)	% Change Fav/(Unfav)
	6/30/2004			6/30/2003
Earnings and Earnings Per Share
Revenues (TE)	$	642,839		594,794	48,045	8.1
Net income		175,335		135,597	39,738	29.3
Average basic shares outstanding		204,659,739		204,947,925
Average diluted shares outstanding		206,909,864		206,225,344
Basic EPS	$	.86		.66	.20	30.3
Diluted EPS		.85		.66	.19	28.8
Net income, excluding after-tax merger-related expenses (1)	$	183,045		135,597	47,448	35.0
Basic EPS, excluding after-tax merger-related expenses		.89		.66	.23	34.8
Diluted EPS, excluding after-tax merger-related expenses		.88		.66	.22	33.3
Asset Quality Ratios (2)
Loan loss allowance to total loans		1.26	%	1.35
Net loans charged-off (annualized) to average loans		.25		.27
Loan loss allowance to net charge-offs (annualized)		5.24	x	5.00
Selected Average Balances
Assets	$	23,443,113		21,735,352	1,707,761	7.9
Loans		13,503,093		12,296,600	1,206,493	9.8
Investment securities (3)		6,524,237		6,193,294	330,943	5.3
Core deposits		13,317,730		12,896,801	420,929	3.3
Stockholders’ equity		2,804,620		2,699,411	105,209	3.9

(1) See reconcilement of GAAP net income to net income excluding merger-related expenses, a non-GAAP measure, on page 24.

(2) Ratios computed excluding loans held for sale.

(3) Average balances exclude the mark-to-market adjustment on available for sale securities under Statement of Financial Accounting Standards No. 115.

SUPPLEMENTAL FINANCIAL TABLES

NATIONAL COMMERCE FINANCIAL CORPORATION

Quarterly Financial Results

Second Quarter 2004

	Page
Highlights	2	Current Quarter Financial Highlights - Second Quarter 2004 vs First Quarter 2004 - Second Quarter 2004 vs Second Quarter 2003
	3	Five Quarter Financial Highlights
	4	Year to Date Financial Highlights
Income Statement	5	Current Quarter Consolidated Statements of Income - Second Quarter 2004 vs First Quarter 2004 - Second Quarter 2004 vs Second Quarter 2003
	6	Five Quarter Consolidated Statements of Income
	7	Year to Date Consolidated Statements of Income
	8	Current Quarter Operating Segment Statements of Income - Second Quarter 2004 vs First Quarter 2004 - Second Quarter 2004 vs Second Quarter 2003
	9	Five Quarter Operating Segment Statements of Income
	10	Year to Date Operating Segment Statements of Income
Balance Sheet	11	Current Quarter Average Balance Sheets - Second Quarter 2004 vs First Quarter 2004 - Second Quarter 2004 vs Second Quarter 2003
	12	Five Quarter Average Balance Sheets
	13	Year to Date Average Balance Sheets
	14	Current Quarter End of Period Balance Sheets - Second Quarter 2004 vs First Quarter 2004 - Second Quarter 2004 vs Second Quarter 2003
	15	Five Quarter End of Period Balance Sheets
	16	Year to Date Rollforward of Stockholders’ Equity
Asset Quality	17	Current Quarter Asset Quality Analysis - Second Quarter 2004 vs First Quarter 2004 - Second Quarter 2004 vs Second Quarter 2003
	18	Five Quarter Asset Quality Analysis
	19	Year to Date Asset Quality Analysis
Net Interest Margin	20	Five Quarter Average Balance Sheets and Net Interest Income Analysis
	21	Year to Date Average Balance Sheets and Net Interest Income Analysis
Reconcilement of Non-GAAP Measures	20	Five Quarter Taxable Equivalent Interest Income
	21	Year to Date Taxable Equivalent Interest Income
	22	Current Quarter Cash Operating Noninterest Expense and Operating Revenues - First Quarter 2004 vs Fourth Quarter 2003 - First Quarter 2004 vs First Quarter 2003
	23	Five Quarter Cash Operating Noninterest Expense and Operating Revenues
	24	Five Quarter Cash Operating Efficiency Ratio
	24	Five Quarter Net Income, excluding Merger-related Expenses
	24	Year to Date Net Income, excluding Merger-related Expenses

NATIONAL COMMERCE FINANCIAL CORPORATION

Current Quarter Financial Highlights

(In Thousands Except Share and Per Share Data)

	Three Months Ended						Three Months Ended
	6/30/2004			3/31/2004	% Change Fav/(Unfav)		6/30/2004		6/30/2003	% Change Fav/(Unfav)
Earnings and Earnings Per Share
Revenues (TE)	$	325,013		317,826	2.3		325,013		305,817	6.3
Net income		85,091		90,244	(5.7	)	85,091		71,507	19.0
Average basic shares outstanding		204,340,479		204,978,998			204,340,479		204,628,675
Average diluted shares outstanding		206,736,883		207,082,844			206,736,883		205,700,819
Basic EPS	$	.42		.44	(4.5	)	.42		.35	20.0
Diluted EPS		.41		.44	(6.8	)	.41		.35	17.1
Net income, excluding after-tax merger-related expenses (1)	$	92,801		90,244	2.8		92,801		71,507	29.8
Basic EPS, excluding after-tax merger-related expenses		.45		.44	2.3		.45		.35	28.6
Diluted EPS, excluding after-tax merger-related expenses		.45		.44	2.3		.45		.35	28.6
Asset Quality Ratios (2)
Loan loss allowance to loans outstanding		1.26	%	1.29			1.26		1.35
Net loans charged-off (annualized) to average loans		.23		.28			.23		.29
Nonperforming assets to loans plus foreclosed real estate and other repossessed assets		.46		.48			.46		.53
Loan loss allowance to net charge-offs (annualized)		5.69	x	4.71			5.69		4.69
Loan loss allowance to nonperforming loans		4.74		4.99			4.74		4.94
Selected Average Balances
Assets	$	23,741,890		23,144,064	2.6		23,741,890		22,173,395	7.1
Loans		13,766,675		13,239,512	4.0		13,766,675		12,220,225	12.7
Investment securities (3)		6,406,063		6,642,411	(3.6	)	6,406,063		6,674,537	(4.0	)
Core deposits		13,390,624		13,244,835	1.1		13,390,624		13,056,980	2.6
Stockholders’ equity		2,826,271		2,782,955	1.6		2,826,271		2,702,937	4.6
Selected Period End Balances
Assets	$	24,044,117		23,038,522	4.4		24,044,117		22,679,991	6.0
Loans		14,191,270		13,418,567	5.8		14,191,270		12,411,446	14.3
Investment securities		6,257,308		6,217,177	.6		6,257,308		6,756,217	(7.4	)
Core deposits		13,549,994		13,469,295	.6		13,549,994		13,382,416	1.3
Stockholders’ equity		2,782,112		2,798,939	(.6	)	2,782,112		2,720,435	2.3
Shares outstanding		205,003,949		203,911,127			205,003,949		204,384,778
Number of banking offices		475		459			475		455
Number of ATMs		529		521			529		510
Number of full-time equivalent employees (FTE)		5,450		5,403			5,450		5,582
Capital Ratios
Period-end tangible equity to period-end tangible assets (4)		6.78	%	7.11			6.78		6.70
Risk-based capital ratios:
Tier 1 capital		10.84	E	10.86			10.84	E	10.69
Total capital		11.88	E	11.92			11.88	E	11.79
Leverage ratio		8.23	E	8.13			8.23	E	7.81

E - Estimated

(1) See reconcilement of GAAP net income to net income excluding merger-related expenses, a non-GAAP measure, on page 24.

(2) Ratios computed excluding loans held for sale.

(3) Average balances exclude the mark-to-market adjustment on available for sale securities under Statement of Financial Accounting Standards No. 115.

(4) Tangible equity and tangible assets are computed by subtracting the sum of goodwill and core deposit intangibles from total equity and total assets, respectively.

Page 2

NATIONAL COMMERCE FINANCIAL CORPORATION

Five Quarter Financial Highlights

(In Thousands Except Share and Per Share Data)

	Three Months Ended
	6/30/2004			3/31/2004	12/31/2003	9/30/2003	6/30/2003
Earnings and Earnings Per Share
Revenues (TE and excluding discontinued op.)	$	325,013		317,826	314,096	313,520	305,817
Net income		85,091		90,244	90,268	85,809	71,507
Average basic shares outstanding		204,340,479		204,978,998	204,953,486	204,609,099	204,628,675
Average diluted shares outstanding		206,736,883		207,082,844	207,009,648	206,005,174	205,700,819
Basic EPS	$	.42		.44	.44	.42	.35
Diluted EPS		.41		.44	.44	.42	.35
Net income, excluding after-tax merger-related expenses (1)	$	92,801		90,244	90,268	85,809	71,507
Basic EPS, excluding after-tax merger-related expenses		.45		.44	.44	.42	.35
Diluted EPS, excluding after-tax merger-related expenses		.45		.44	.44	.42	.35
Asset Quality Ratios (2)
Loan loss allowance to total loans		1.26	%	1.29	1.31	1.34	1.35
Net loans charged-off (annualized) to average loans		.23		.28	.43	.31	.29
Nonperforming assets to loans plus foreclosed real estate and other repossessed assets		.46		.48	.49	.52	.53
Loan loss allowance to net charge-offs (annualized)		5.69	x	4.71	3.04	4.30	4.69
Loan loss allowance to nonperforming loans		4.74		4.99	5.55	4.79	4.94
Selected Average Balances
Assets	$	23,741,890		23,144,064	22,845,698	22,727,299	22,173,395
Loans		13,766,675		13,239,512	12,992,875	12,736,334	12,220,225
Investment securities (3)		6,406,063		6,642,411	6,626,168	6,688,614	6,674,537
Core deposits		13,390,624		13,244,835	13,143,769	13,180,992	13,056,980
Stockholders’ equity		2,826,271		2,782,955	2,745,465	2,734,081	2,702,937
Selected Period End Balances
Assets	$	24,044,117		23,038,522	23,016,916	22,890,089	22,679,991
Loans		14,191,270		13,418,567	13,034,948	12,897,774	12,411,446
Investment securities		6,257,308		6,217,177	6,619,000	6,702,885	6,756,217
Core deposits		13,549,994		13,469,295	13,342,851	13,182,330	13,382,416
Stockholders’ equity		2,782,112		2,798,939	2,781,186	2,729,403	2,720,435
Shares outstanding		205,003,949		203,911,127	205,136,649	204,808,440	204,384,778
Number of banking offices		475		459	451	444	455
Number of ATMs		529		521	521	510	510
Number of full-time equivalent employees (FTE)		5,450		5,403	5,441	5,458	5,582
Capital Ratios
Period-end tangible equity to period-end tangible assets (4)		6.78	%	7.11	7.00	6.74	6.70
Risk-based capital ratios:
Tier 1 capital		10.84	E	10.86	11.03	10.81	10.69
Total capital		11.88	E	11.92	12.10	11.90	11.79
Leverage ratio		8.23	E	8.13	8.17	7.93	7.81

E - Estimated

(1) See reconcilement of GAAP net income to net income excluding merger-related expenses, a non-GAAP measure, on page 24.

(2) Ratios computed excluding loans held for sale.

(3) Average balances exclude the mark-to-market adjustment on available for sale securities under Statement of Financial Accounting Standards No. 115.

(4) Tangible equity and tangible assets are computed by subtracting the sum of goodwill and core deposit intangibles from total equity and total assets, respectively.

Page 3

NATIONAL COMMERCE FINANCIAL CORPORATION

Year to Date Financial Highlights

(In Thousands Except Share and Per Share Data)

	Six Months Ended				$ Change Fav/(Unfav)	% Change Fav/(Unfav)
	6/30/2004			6/30/2003
Earnings and Earnings Per Share
Revenues (TE)	$	642,839		594,794	48,045	8.1
Net income		175,335		135,597	39,738	29.3
Average basic shares outstanding		204,659,739		204,947,925
Average diluted shares outstanding		206,909,864		206,225,344
Basic EPS	$	.86		.66	.20	30.3
Diluted EPS		.85		.66	.19	28.8
Net income, excluding after-tax merger-related expenses (1)	$	183,045		135,597	47,448	35.0
Basic EPS, excluding after-tax merger-related expenses		.89		.66	.23	34.8
Diluted EPS, excluding after-tax merger-related expenses		.88		.66	.22	33.3
Asset Quality Ratios (2)
Loan loss allowance to total loans		1.26	%	1.35
Net loans charged-off (annualized) to average loans		.25		.27
Loan loss allowance to net charge-offs (annualized)		5.24	x	5.00
Selected Average Balances
Assets	$	23,443,113		21,735,352	1,707,761	7.9
Loans		13,503,093		12,296,600	1,206,493	9.8
Investment securities (3)		6,524,237		6,193,294	330,943	5.3
Core deposits		13,317,730		12,896,801	420,929	3.3
Stockholders’ equity		2,804,620		2,699,411	105,209	3.9

(1) See reconcilement of GAAP net income to net income excluding merger-related expenses, a non-GAAP measure, on page 24.

(2) Ratios computed excluding loans held for sale.

(3) Average balances exclude the mark-to-market adjustment on available for sale securities under Statement of Financial Accounting Standards No. 115.

Page 4

NATIONAL COMMERCE FINANCIAL CORPORATION

Current Quarter Consolidated Statements of Income

(In Thousands Except Share and Per Share Data)

	Three Months Ended			% Change Fav/(Unfav)		Three Months Ended			% Change Fav/(Unfav)
	6/30/2004		3/31/2004			6/30/2004	6/30/2003
Income Statement
Loan income (TE)	$	190,774	184,637	3.3		190,774	190,239		.3
Securities income (TE)		78,883	81,925	(3.7	)	78,883	81,215		(2.9	)
Other interest income (TE)		655	782	(16.2	)	655	357		83.5
Total interest income (TE)		270,312	267,344	1.1		270,312	271,811		(.6	)
Savings/NOW and money market expense		8,839	8,990	1.7		8,839	11,006		19.7
Jumbo and brokered CD expense		7,073	6,416	(10.2	)	7,073	7,378		4.1
Consumer time deposit expense		31,198	32,353	3.6		31,198	36,800		15.2
Interest expense on deposits		47,110	47,759	1.4		47,110	55,184		14.6
Short-term borrowed funds expense		4,924	4,565	(7.9	)	4,924	4,698		(4.8	)
FHLB advances expense		15,968	15,602	(2.3	)	15,968	21,397		25.4
Trust preferred securities and long-term debt expense		1,545	1,530	(1.0	)	1,545	2,133		27.6
Total interest expense		69,547	69,456	(.1	)	69,547	83,412		16.6
Net interest income (TE)		200,765	197,888	1.5		200,765	188,399		6.6
Taxable equivalent adjustment		6,779	6,817	.6		6,779	7,218		6.1
Net interest income		193,986	191,071	1.5		193,986	181,181		7.1
Provision for loan losses		12,845	12,088	(6.3	)	12,845	13,376		4.0
Net interest income after provision		181,141	178,983	1.2		181,141	167,805		7.9
Service charges on deposits		44,973	41,026	9.6		44,973	43,500		3.4
Other service charges and fees		9,467	8,437	12.2		9,467	9,721		(2.6	)
Broker/dealer revenue		26,711	25,762	3.7		26,711	28,152		(5.1	)
Asset management		15,986	16,498	(3.1	)	15,986	13,356		19.7
Mortgage banking income		13,459	7,383	82.3		13,459	11,458		17.5
Equity earnings from First Market Bank		1,402	1,285	9.1		1,402	1,071		30.9
Other		11,470	8,584	33.6		11,470	7,700		49.0
Gain (loss) on branch sale		714	45	1486.7		714	—		—
Investment securities gains, net		66	10,918	(99.4	)	66	2,460		(97.3	)
Total noninterest income		124,248	119,938	3.6		124,248	117,418		5.8
Personnel		77,807	79,121	1.7		77,807	77,483		(.4	)
Occupancy		13,413	13,407	—		13,413	13,292		(.9	)
Equipment		7,194	7,233	.5		7,194	7,992		10.0
Core deposit amortization		12,901	13,639	5.4		12,901	15,673		17.7
First Mercantile litigation		—	—	—		—	1,041		100.0
Employment contract terminations		—	—	—		—	14,108		100.0
Debt retirement/prepayment penalties		—	—	—		—	(326	)	100.0
Merger-related expenses		8,290	—	—		8,290	—		—
Other		55,052	50,326	(9.4	)	55,052	51,341		(7.2	)
Total noninterest expense		174,657	163,726	(6.7	)	174,657	180,604		3.3
Income before income taxes		130,732	135,195	(3.3	)	130,732	104,619		25.0
Income taxes		45,641	44,951	(1.5	)	45,641	33,112		(37.8	)
Net income from continuing operations		85,091	90,244	(5.7	)	85,091	71,507		19.0
Discontinued operation - merchant processing		—	—	—		—	—		—
Net income	$	85,091	90,244	(5.7	)	85,091	71,507		19.0
Average Common Shares Outstanding
Basic		204,340,479	204,978,998			204,340,479	204,628,675
Diluted		206,736,883	207,082,844			206,736,883	205,700,819
Earnings and Dividends Per Share
Basic	$	.42	.44	(4.5	)	.42	.35		20.0
Diluted		.41	.44	(6.8	)	.41	.35		17.1
Cash dividends		.20	.20	—		.20	.17		17.6

Page 5

NATIONAL COMMERCE FINANCIAL CORPORATION

Five Quarter Consolidated Statements of Income

(In Thousands Except Share and Per Share Data)

	Three Months Ended
	6/30/2004		3/31/2004	12/31/2003	9/30/2003		6/30/2003
Income Statement
Loan income (TE)	$	190,774	184,637	190,799	188,073		190,239
Securities income (TE)		78,883	81,925	81,051	78,836		81,215
Other interest income (TE)		655	782	1,125	303		357
Total interest income (TE)		270,312	267,344	272,975	267,212		271,811
Savings/NOW and money market expense		8,839	8,990	9,287	9,372		11,006
Jumbo and brokered CD expense		7,073	6,416	6,354	6,452		7,378
Consumer time deposit expense		31,198	32,353	32,769	33,981		36,800
Interest expense on deposits		47,110	47,759	48,410	49,805		55,184
Short-term borrowed funds expense		4,924	4,565	4,532	4,619		4,698
FHLB advances expense		15,968	15,602	15,722	18,236		21,397
Trust preferred securities and long-term debt expense		1,545	1,530	1,920	2,036		2,133
Total interest expense		69,547	69,456	70,584	74,696		83,412
Net interest income (TE)		200,765	197,888	202,391	192,516		188,399
Taxable equivalent adjustment		6,779	6,817	6,963	7,057		7,218
Net interest income		193,986	191,071	195,428	185,459		181,181
Provision for loan losses		12,845	12,088	12,382	14,972		13,376
Net interest income after provision		181,141	178,983	183,046	170,487		167,805
Service charges on deposits		44,973	41,026	41,211	42,295		43,500
Other service charges and fees		9,467	8,437	8,303	9,565		9,721
Broker/dealer revenue		26,711	25,762	21,560	24,739		28,152
Asset management		15,986	16,498	16,234	14,828		13,356
Mortgage banking income		13,459	7,383	8,646	16,943		11,458
Equity earnings from First Market Bank		1,402	1,285	1,219	1,314		1,071
Other		11,470	8,584	8,994	8,777		7,700
Gain (loss) on branch sale		714	45	2,200	7,055		—
Investment securities gains (losses), net		66	10,918	3,338	(4,512	)	2,460
Total noninterest income		124,248	119,938	111,705	121,004		117,418
Personnel		77,807	79,121	75,404	79,726		77,483
Occupancy		13,413	13,407	13,244	14,898		13,292
Equipment		7,194	7,233	7,399	7,509		7,992
Core deposit amortization		12,901	13,639	14,337	15,062		15,673
First Mercantile litigation		—	—	—	—		1,041
Employment contract terminations		—	—	987	604		14,108
Debt retirement/prepayment penalties (gains)		—	—	—	31,987		(326	)
Merger-related expenses		8,290	—	—	—		—
Other		55,052	50,326	50,865	51,709		51,341
Total noninterest expense		174,657	163,726	162,236	201,495		180,604
Income before income taxes		130,732	135,195	132,515	89,996		104,619
Income taxes		45,641	44,951	43,014	28,329		33,112
Net income from continuing operations		85,091	90,244	89,501	61,667		71,507
Discontinued operation - merchant processing		—	—	767	24,142		—
Net income	$	85,091	90,244	90,268	85,809		71,507
Average Common Shares Outstanding
Basic		204,340,479	204,978,998	204,953,486	204,609,099		204,628,675
Diluted		206,736,883	207,082,844	207,009,648	206,005,174		205,700,819
Earnings and Dividends Per Share
Basic	$	.42	.44	.44	.42		.35
Diluted		.41	.44	.44	.42		.35
Cash dividends		.20	.20	.20	.20		.17

Page 6

NATIONAL COMMERCE FINANCIAL CORPORATION

Year to Date Consolidated Statements of Income

(In Thousands Except Share and Per Share Data)

	Six Months Ended				$ Change Fav/(Unfav)		% Change Fav/(Unfav)
	6/30/2004		6/30/2003
Income Statement
Loan income (TE)	$	375,411	390,100		(14,689	)	(3.8	)
Securities income (TE)		160,808	151,478		9,330		6.2
Other interest income (TE)		1,437	549		888		161.7
Total interest income (TE)		537,656	542,127		(4,471	)	(.8	)
Savings/NOW and money market expense		17,829	22,963		5,134		22.4
Jumbo and brokered CD expense		13,489	14,567		1,078		7.4
Consumer time deposit expense		63,551	74,942		11,391		15.2
Interest expense on deposits		94,869	112,472		17,603		15.7
Short-term borrowed funds expense		9,489	9,066		(423	)	(4.7	)
FHLB advances expense		31,570	43,515		11,945		27.5
Trust preferred securities and long-term debt expense		3,075	4,293		1,218		28.4
Total interest expense		139,003	169,346		30,343		17.9
Net interest income (TE)		398,653	372,781		25,872		6.9
Taxable equivalent adjustment		13,596	14,158		(562	)	(4.0	)
Net interest income		385,057	358,623		26,434		7.4
Provision for loan losses		24,933	21,060		(3,873	)	(18.4	)
Net interest income after provision		360,124	337,563		22,561		6.7
Service charges on deposits		85,999	84,750		1,249		1.5
Other service charges and fees		17,904	19,062		(1,158	)	(6.1	)
Broker/dealer revenue		52,473	49,233		3,240		6.6
Asset management		32,484	25,738		6,746		26.2
Mortgage banking income		20,842	21,112		(270	)	(1.3	)
Equity earnings from First Market Bank		2,687	1,997		690		34.6
Other		20,054	15,342		4,712		30.7
Gain (loss) on branch sale		759	(145	)	904		(623.4	)
Investment securities gains, net		10,984	4,924		6,060		123.1
Total noninterest income		244,186	222,013		22,173		10.0
Personnel		156,928	154,936		(1,992	)	(1.3	)
Occupancy		26,820	26,196		(624	)	(2.4	)
Equipment		14,427	15,397		970		6.3
Core deposit amortization		26,540	31,957		5,417		17.0
First Mercantile litigation		—	20,695		20,695		100.0
Employment contract terminations		—	14,108		14,108		100.0
Debt retirement/prepayment penalties (gains)		—	(326	)	(326	)	100.0
Merger-related expenses		8,290	—		(8,290	)	—
Other		105,378	97,745		(7,633	)	(7.8	)
Total noninterest expense		338,383	360,708		22,325		6.2
Income before income taxes		265,927	198,868		67,059		33.7
Income taxes		90,592	63,271		(27,321	)	(43.2	)
Net income from continuing operations		175,335	135,597		39,738		29.3
Discontinued operation - merchant processing		—	—		—		—
Net income	$	175,335	135,597		39,738		29.3
Average Common Shares Outstanding
Basic		204,659,739	204,947,925
Diluted		206,909,864	206,225,344
Earnings and Dividends Per Share
Basic	$	.86	.66		.20		30.3
Diluted		.85	.66		.19		28.8
Cash dividends		.40	.34		.06		17.6

Page 7

NATIONAL COMMERCE FINANCIAL CORPORATION

Current Quarter Operating Segment Statements of Income

(In Thousands)

	Three Months Ended					% Change Fav/(Unfav)		Three Months Ended				% Change Fav/(Unfav)
	6/30/04			3/31/04				6/30/04		6/30/03
Traditional Banking
Net interest income (TE)	$	193,524		190,886		1.4		193,524		183,113		5.7
Provision for loan losses		(12,845	)	(12,088	)	(6.3	)	(12,845	)	(13,376	)	4.0
Gain (loss) on branch sale		714		45		(1486.7	)	714		—		—
Other noninterest income		69,050		68,789		.4		69,050		65,301		5.7
Intangibles amortization		(12,901	)	(13,639	)	5.4		(12,901	)	(15,673	)	17.7
Employment contract terminations		—		—		—		—		(14,108	)	100.0
Debt retirement/prepayment (penalties) gains		—		—		—		—		326		100.0
Merger-related expenses		(8,290	)	—		—		(8,290	)	—		—
Other noninterest expense		(112,800	)	(111,756	)	(.9	)	(112,800	)	(111,313	)	(1.3	)
Income before income taxes (TE)		116,452		122,237		(4.7	)	116,452		94,270		23.5
Income taxes		44,207		44,056		(.3	)	44,207		33,479		(32.0	)
Net income	$	72,245		78,181		(7.6	)	72,245		60,791		18.8
Financial Enterprises
Net interest income (TE)	$	7,241		7,002		3.4		7,241		5,286		37.0
Other noninterest income		56,409		53,068		6.3		56,409		54,215		4.0
First Mercantile litigation		—		—		—		—		(1,041	)	100.0
Other noninterest expense		(42,591	)	(40,295	)	(5.7	)	(42,591	)	(40,893	)	(4.2	)
Income before income taxes (TE)		21,059		19,775		6.5		21,059		17,567		19.9
Income taxes		8,213		7,712		(6.5	)	8,213		6,851		(19.9	)
Net income	$	12,846		12,063		6.5		12,846		10,716		19.9
Fully Consolidated
Net interest income (TE)	$	200,765		197,888		1.5		200,765		188,399		6.6
Provision for loan losses		(12,845	)	(12,088	)	(6.3	)	(12,845	)	(13,376	)	4.0
Gain (loss) on branch sale		714		45		(1486.7	)	714		—		—
Other noninterest income		123,534		119,893		3.0		123,534		117,418		5.2
Intangibles amortization		(12,901	)	(13,639	)	5.4		(12,901	)	(15,673	)	17.7
First Mercantile litigation		—		—		—		—		(1,041	)	100.0
Employment contract terminations		—		—		—		—		(14,108	)	100.0
Debt retirement/prepayment (penalties) gains		—		—		—		—		326		100.0
Merger-related expenses		(8,290	)	—		—		(8,290	)	—		—
Other noninterest expense		(153,466	)	(150,087	)	(2.3	)	(153,466	)	(150,108	)	(2.2	)
Income before income taxes (TE)		137,511		142,012		(3.2	)	137,511		111,837		23.0
Income taxes		52,420		51,768		(1.3	)	52,420		40,330		(30.0	)
Net income	$	85,091		90,244		(5.7	)	85,091		71,507		19.0

(1) Inter-segment eliminations are not separately presented.

Page 8

NATIONAL COMMERCE FINANCIAL CORPORATION

Five Quarter Operating Segment Statements of Income

(In Thousands)

	Three Months Ended
	6/30/2004			3/31/2004		12/31/2003		9/30/2003		6/30/2003
Traditional Banking
Net interest income (TE)	$	193,524		190,886		195,876		187,218		183,113
Provision for loan losses		(12,845	)	(12,088	)	(12,382	)	(14,972	)	(13,376	)
Gain (loss) on branch sale		714		45		2,200		7,055		—
Other noninterest income		69,050		68,789		63,246		63,926		65,301
Intangibles amortization		(12,901	)	(13,639	)	(14,337	)	(15,062	)	(15,673	)
Employment contract terminations		—		—		(987	)	(604	)	(14,108	)
Debt retirement/prepayment (penalties) gains		—		—		—		(31,987	)	326
Merger-related expenses		(8,290	)	—		—		—		—
Other noninterest expense		(112,800	)	(111,756	)	(109,390	)	(114,846	)	(111,313	)
Income before income taxes (TE)		116,452		122,237		124,226		80,728		94,270
Income taxes		44,207		44,056		45,515		27,533		33,479
Net income	$	72,245		78,181		78,711		53,195		60,791
Financial Enterprises
Net interest income (TE)	$	7,241		7,002		6,515		5,298		5,286
Other noninterest income		56,409		53,068		48,104		51,965		54,215
Intangibles amortization		—		—		—		—		—
First Mercantile litigation		—		—		—		—		(1,041	)
Other noninterest expense		(42,591	)	(40,295	)	(39,367	)	(40,938	)	(40,893	)
Income before income taxes (TE)		21,059		19,775		15,252		16,325		17,567
Income taxes		8,213		7,712		4,462		7,853		6,851
Net income from continuing operations		12,846		12,063		10,790		8,472		10,716
Discontinued operation - merchant processing		—		—		767		24,142		—
Net income	$	12,846		12,063		11,557		32,614		10,716
Fully Consolidated
Net interest income (TE)	$	200,765		197,888		202,391		192,516		188,399
Provision for loan losses		(12,845	)	(12,088	)	(12,382	)	(14,972	)	(13,376	)
Gain (loss) on branch sale		714		45		2,200		7,055		—
Other noninterest income		123,534		119,893		109,505		113,949		117,418
Intangibles amortization		(12,901	)	(13,639	)	(14,337	)	(15,062	)	(15,673	)
First Mercantile litigation		—		—		—		—		(1,041	)
Employment contract terminations		—		—		(987	)	(604	)	(14,108	)
Debt retirement/prepayment (penalties) gains		—		—		—		(31,987	)	326
Merger-related expenses		(8,290	)	—		—		—		—
Other noninterest expense		(153,466	)	(150,087	)	(146,912	)	(153,842	)	(150,108	)
Income before income taxes (TE)		137,511		142,012		139,478		97,053		111,837
Income taxes		52,420		51,768		49,977		35,386		40,330
Net income from continuing operations		85,091		90,244		89,501		61,667		71,507
Discontinued operation - merchant processing		—		—		767		24,142		—
Net income	$	85,091		90,244		90,268		85,809		71,507

(1) Inter-segment eliminations are not separately presented.

Page 9

NATIONAL COMMERCE FINANCIAL CORPORATION

Year to Date Operating Segment Statements of Income

(In Thousands)

	Six Months Ended					$ Change Fav/(Unfav)		% Change Fav/(Unfav)
	6/30/2004			6/30/2003
Traditional Banking
Net interest income (TE)	$	384,410		362,280		22,130		6.1
Provision for loan losses		(24,933	)	(21,060	)	(3,873	)	(18.4	)
Gain on branch sale		759		(145	)	904		623.4
Other noninterest income		137,839		125,446		12,393		9.9
Intangibles amortization		(26,540	)	(31,957	)	5,417		17.0
Employment contract terminations		—		(14,108	)	14,108		100.0
Debt retirement/prepayment (penalties) gains		—		326		(326	)	100.0
Merger-related expenses		(8,290	)	—		(8,290	)	—
Other noninterest expense		(224,556	)	(220,910	)	(3,646	)	(9.2	)
Income before income taxes (TE)		238,689		199,872		38,817		19.4
Income taxes		88,263		72,299		(15,964	)	(22.1	)
Net income	$	150,426		127,573		22,853		17.9
Financial Enterprises
Net interest income (TE)	$	14,243		10,501		3,742		35.6
Other noninterest income		109,477		98,972		10,505		10.6
First Mercantile litigation		—		(20,695	)	20,695		100.0
Other noninterest expense		(82,886	)	(75,624	)	(7,262	)	(9.6	)
Income before income taxes (TE)		40,834		13,154		27,680		210.4
Income taxes		15,925		5,130		(10,795	)	(210.4	)
Net income	$	24,909		8,024		16,885		210.4
Fully Consolidated
Net interest income (TE)	$	398,653		372,781		25,872		6.9
Provision for loan losses		(24,933	)	(21,060	)	(3,873	)	(18.4	)
Gain (loss) on branch sale		759		(145	)	904		623.4
Other noninterest income		243,427		222,158		21,269		9.6
Intangibles amortization		(26,540	)	(31,957	)	5,417		17.0
First Mercantile litigation		—		(20,695	)	20,695		100.0
Employment contract terminations		—		(14,108	)	14,108		100.0
Debt retirement/prepayment (penalties) gains		—		326		(326	)	100.0
Merger-related expenses		(8,290	)	—		(8,290	)	—
Other noninterest expense		(303,553	)	(294,274	)	(9,279	)	(8.8	)
Income before income taxes (TE)		279,523		213,026		66,497		31.2
Income taxes		104,188		77,429		(26,759	)	(34.6	)
Net income	$	175,335		135,597		39,738		29.3

(1) Inter-segment eliminations are not separately presented.

Page 10

NATIONAL COMMERCE FINANCIAL CORPORATION

Current Quarter Average Balance Sheets

(In Thousands)

	Three Months Ended			% Inc/(Decr)		Three Months Ended		% Inc/(Decr)
	6/30/2004		3/31/2004			6/30/2004	6/30/2003
Assets
Cash and due from banks	$	459,043	431,289	6.4		459,043	422,653	8.6
Time deposits in other banks		4,467	38,023	(88.3	)	4,467	5,742	(22.2	)
Federal funds sold and other short-term investments		275,289	178,951	53.8		275,289	107,462	156.2
Investment securities (1)		6,406,063	6,642,411	(3.6	)	6,406,063	6,674,537	(4.0	)
Trading securities		308,778	259,602	18.9		308,778	120,999	155.2
Loans held for sale		266,632	212,075	25.7		266,632	394,321	(32.4	)
Loans:
Commercial		3,989,932	3,868,332	3.1		3,989,932	3,492,900	14.2
Construction and commercial real estate		3,821,442	3,760,015	1.6		3,821,442	3,690,766	3.5
Mortgage		1,084,409	954,352	13.6		1,084,409	764,975	41.8
Consumer		4,654,320	4,441,559	4.8		4,654,320	4,059,490	14.7
Revolving credit		86,564	85,246	1.5		86,564	78,142	10.8
Lease financing		130,008	130,008	.0		130,008	133,952	(2.9	)
Total portfolio loans		13,766,675	13,239,512	4.0		13,766,675	12,220,225	12.7
Allowance for loan losses		174,257	171,087	1.9		174,257	164,108	6.2
Net loans		13,592,418	13,068,425	4.0		13,592,418	12,056,117	12.7
Bank owned life insurance		331,286	243,306	36.2		331,286	231,397	43.2
Investment in First Market Bank		34,342	32,946	4.2		34,342	29,248	17.4
Premises and equipment		261,521	265,599	(1.5	)	261,521	276,227	(5.3	)
Goodwill		1,090,126	1,087,115	.3		1,090,126	1,082,077	.7
Core deposit intangibles		152,523	165,967	(8.1	)	152,523	213,065	(28.4	)
Other assets		559,402	518,355	7.9		559,402	559,550	.0
Total assets	$	23,741,890	23,144,064	2.6		23,741,890	22,173,395	7.1
Liabilities
Deposits:
Demand deposits (noninterest-bearing)	$	2,700,613	2,514,792	7.4		2,700,613	2,375,641	13.7
Savings, NOW and money market accounts		5,824,697	5,816,757	.1		5,824,697	5,765,351	1.0
Jumbo and brokered certificates of deposit		2,522,513	2,290,967	10.1		2,522,513	2,032,881	24.1
Time deposits		4,865,314	4,913,286	(1.0	)	4,865,314	4,915,988	(1.0	)
Total deposits		15,913,137	15,535,802	2.4		15,913,137	15,089,861	5.5
Short-term borrowings		1,741,327	1,697,317	2.6		1,741,327	1,388,604	25.4
FHLB advances		2,495,581	2,351,862	6.1		2,495,581	2,197,173	13.6
Trust preferred securities and long-term debt		282,425	278,344	1.5		282,425	299,247	(5.6	)
Other liabilities		483,149	497,784	(2.9	)	483,149	495,573	(2.5	)
Total liabilities		20,915,619	20,361,109	2.7		20,915,619	19,470,458	7.4
Stockholders’ Equity
Common stock		408,681	409,958	(.3	)	408,681	409,257	(.1	)
Additional paid-in capital		1,707,520	1,730,778	(1.3	)	1,707,520	1,735,104	(1.6	)
Retained earnings		697,268	636,800	9.5		697,268	512,491	36.1
Accumulated other comprehensive income		12,802	5,419	136.2		12,802	46,085	(72.2	)
Total stockholders’ equity		2,826,271	2,782,955	1.6		2,826,271	2,702,937	4.6
Total liabilities and stockholders’ equity	$	23,741,890	23,144,064	2.6		23,741,890	22,173,395	7.1

(1) Average balances exclude the mark-to-market adjustment on available for sale securities under Statement of Financial Accounting Standards No. 115.

Page 11

NATIONAL COMMERCE FINANCIAL CORPORATION

Five Quarter Average Balance Sheets

(In Thousands)

	Three Months Ended
	6/30/2004		3/31/2004	12/31/2003	9/30/2003	6/30/2003
Assets
Cash and due from banks	$	459,043	431,289	458,469	450,576	422,653
Time deposits in other banks		4,467	38,023	64,169	5,726	5,742
Federal funds sold and other short-term investments		275,289	178,951	142,362	148,627	107,462
Investment securities (1)		6,406,063	6,642,411	6,626,168	6,688,614	6,674,537
Trading securities		308,778	259,602	188,287	136,198	120,999
Loans held for sale		266,632	212,075	226,446	328,968	394,321
Loans:
Commercial		3,989,932	3,868,332	3,732,128	3,547,153	3,492,900
Construction and commercial real estate		3,821,442	3,760,015	3,776,419	3,785,911	3,690,766
Mortgage		1,084,409	954,352	994,567	986,189	764,975
Consumer		4,654,320	4,441,559	4,278,651	4,207,450	4,059,490
Revolving credit		86,564	85,246	82,922	80,631	78,142
Lease financing		130,008	130,008	128,188	129,000	133,952
Total portfolio loans		13,766,675	13,239,512	12,992,875	12,736,334	12,220,225
Allowance for loan losses		174,257	171,087	171,580	168,160	164,108
Net loans		13,592,418	13,068,425	12,821,295	12,568,174	12,056,117
Bank owned life insurance		331,286	243,306	239,161	235,741	231,397
Investment in First Market Bank		34,342	32,946	31,803	30,471	29,248
Premises and equipment		261,521	265,599	271,113	276,435	276,227
Goodwill		1,090,126	1,087,115	1,085,565	1,083,340	1,082,077
Core deposit intangibles		152,523	165,967	180,879	197,593	213,065
Other assets		559,402	518,355	509,981	576,836	559,550
Total assets	$	23,741,890	23,144,064	22,845,698	22,727,299	22,173,395
Liabilities
Deposits:
Demand deposits (noninterest-bearing)	$	2,700,613	2,514,792	2,554,870	2,565,673	2,375,641
Savings, NOW and money market accounts		5,824,697	5,816,757	5,799,594	5,845,036	5,765,351
Jumbo and brokered certificates of deposit		2,522,513	2,290,967	2,207,988	2,166,011	2,032,881
Time deposits		4,865,314	4,913,286	4,789,305	4,770,283	4,915,988
Total deposits		15,913,137	15,535,802	15,351,757	15,347,003	15,089,861
Short-term borrowings		1,741,327	1,697,317	1,685,250	1,608,179	1,388,604
FHLB advances		2,495,581	2,351,862	2,312,746	2,218,184	2,197,173
Trust preferred securities and long-term debt		282,425	278,344	299,867	297,701	299,247
Other liabilities		483,149	497,784	450,613	522,151	495,573
Total liabilities		20,915,619	20,361,109	20,100,233	19,993,218	19,470,458
Stockholders’ Equity
Common stock		408,681	409,958	409,907	409,218	409,257
Additional paid-in capital		1,707,520	1,730,778	1,737,372	1,733,149	1,735,104
Retained earnings		697,268	636,800	593,057	544,342	512,491
Accumulated other comprehensive income		12,802	5,419	5,129	47,372	46,085
Total stockholders’ equity		2,826,271	2,782,955	2,745,465	2,734,081	2,702,937
Total liabilities and stockholders’ equity	$	23,741,890	23,144,064	22,845,698	22,727,299	22,173,395

(1) Average balances exclude the mark-to-market adjustment on available for sale securities under Statement of Financial Accounting Standards No. 115.

Page 12

NATIONAL COMMERCE FINANCIAL CORPORATION

Year to Date Average Balance Sheets

(In Thousands)

	Year Ended			$ Change		% Change
	6/30/2004		6/30/2003
Assets
Cash and due from banks	$	445,166	410,675	34,491		8.4
Time deposits in other banks		21,245	7,648	13,597		177.8
Federal funds sold and other short-term investments		227,120	79,480	147,640		185.8
Investment securities (1)		6,524,237	6,193,294	330,943		5.3
Trading securities		284,190	104,340	179,850		172.4
Loans held for sale		239,354	404,705	(165,351	)	(40.9	)
Loans:
Commercial		3,929,132	3,422,322	506,810		14.8
Construction and commercial real estate		3,790,729	3,684,267	106,462		2.9
Mortgage		1,019,380	974,530	44,850		4.6
Consumer		4,547,939	4,002,704	545,235		13.6
Revolving credit		85,905	77,544	8,361		10.8
Lease financing		130,008	135,233	(5,225	)	(3.9	)
Total portfolio loans		13,503,093	12,296,600	1,206,493		9.8
Allowance for loan losses		172,672	163,658	9,014		5.5
Net loans		13,330,421	12,132,942	1,197,479		9.9
Bank owned life insurance		287,296	229,814	57,482		25.0
Investment in First Market Bank		33,644	28,803	4,841		16.8
Premises and equipment		263,600	267,469	(3,869	)	(1.4	)
Goodwill		1,088,621	1,079,613	9,008		.8
Core deposit intangibles		159,245	221,010	(61,765	)	(27.9	)
Other assets		538,974	575,559	(36,585	)	(6.4	)
Total assets	$	23,443,113	21,735,352	1,707,761		7.9
Liabilities
Deposits:
Demand deposits (noninterest-bearing)	$	2,607,703	2,258,620	349,083		15.5
Savings, NOW and money market accounts		5,820,727	5,725,246	95,481		1.7
Jumbo and brokered certificates of deposit		2,406,740	1,915,194	491,546		25.7
Time deposits		4,889,300	4,912,935	(23,635	)	(.5	)
Total deposits		15,724,470	14,811,995	912,475		6.2
Short-term borrowings		1,719,322	1,319,415	399,907		30.3
FHLB advances		2,423,721	2,127,422	296,299		13.9
Trust preferred securities and long-term debt		280,384	298,003	(17,619	)	(5.9	)
Other liabilities		490,596	479,106	11,490		2.4
Total liabilities		20,638,493	19,035,941	1,602,552		8.4
Stockholders’ Equity
Common stock		409,319	409,896	(577	)	(.1	)
Additional paid-in capital		1,719,149	1,742,216	(23,067	)	(1.3	)
Retained earnings		667,041	498,928	168,113		33.7
Accumulated other comprehensive income		9,111	48,371	(39,260	)	(81.2	)
Total stockholders’ equity		2,804,620	2,699,411	105,209		3.9
Total liabilities and stockholders’ equity	$	23,443,113	21,735,352	1,707,761		7.9

(1) Average balances exclude the mark-to-market adjustment on available for sale securities under Statement of Financial Accounting Standards No. 115.

Page 13

NATIONAL COMMERCE FINANCIAL CORPORATION

Current Quarter End of Period Balance Sheets

(In Thousands)

	As of				% Inc/(Decr)		As of			% Inc/(Decr)
	6/30/2004			3/31/2004			6/30/2004		6/30/2003
Assets
Cash and due from banks	$	568,360		458,494	24.0		568,360		536,123	6.0
Time deposits in other banks		7,803		4,552	71.4		7,803		5,265	48.2
Federal funds sold and other short-term investments		267,182		164,818	62.1		267,182		160,383	66.6
Investment securities:
Available for sale		5,116,531		4,858,421	5.3		5,116,531		5,311,700	(3.7	)
Held to maturity		1,140,777		1,358,756	(16.0	)	1,140,777		1,444,517	(21.0	)
Trading securities		245,913		257,338	(4.4	)	245,913		105,923	132.2
Loans held for sale		334,156		277,778	20.3		334,156		498,447	(33.0	)
Loans:
Commercial		4,058,205		3,935,130	3.1		4,058,205		3,570,337	13.7
Construction and commercial real estate		3,919,168		3,765,122	4.1		3,919,168		3,719,164	5.4
Mortgage		1,161,352		970,923	19.6		1,161,352		783,615	48.2
Consumer		4,832,412		4,531,275	6.6		4,832,412		4,128,195	17.1
Revolving credit		88,821		85,718	3.6		88,821		79,437	11.8
Lease financing		131,312		130,399	.7		131,312		130,698	.5
Total portfolio loans		14,191,270		13,418,567	5.8		14,191,270		12,411,446	14.3
Allowance for loan losses		178,438		173,384	2.9		178,438		167,316	6.6
Net loans		14,012,832		13,245,183	5.8		14,012,832		12,244,130	14.4
Bank owned life insurance		349,473		244,842	42.7		349,473		233,452	49.7
Investment in First Market Bank		35,214		33,811	4.1		35,214		29,995	17.4
Premises and equipment		245,279		261,699	(6.3	)	245,279		275,612	(11.0	)
Goodwill		1,090,101		1,090,117	(.0	)	1,090,101		1,083,157	.6
Core deposit intangibles		145,899		158,800	(8.1	)	145,899		204,959	(28.8	)
Other assets		484,597		623,913	(22.3	)	484,597		546,328	(11.3	)
Total assets	$	24,044,117		23,038,522	4.4		24,044,117		22,679,991	6.0
Liabilities
Deposits:
Demand deposits (noninterest-bearing)	$	2,862,746		2,705,354	5.8		2,862,746		2,657,291	7.7
Savings, NOW and money market accounts		5,804,172		5,871,488	(1.1	)	5,804,172		5,849,113	(.8	)
Jumbo and brokered certificates of deposit		2,464,471		2,321,673	6.2		2,464,471		2,063,785	19.4
Time deposits		4,883,076		4,892,453	(.2	)	4,883,076		4,876,012	.1
Total deposits		16,014,465		15,790,968	1.4		16,014,465		15,446,201	3.7
Short-term borrowings		1,708,305		1,671,568	2.2		1,708,305		1,465,425	16.6
FHLB advances		2,875,720		1,875,893	53.3		2,875,720		2,274,384	26.4
Trust preferred securities and long-term debt		285,158		279,973	1.9		285,158		295,049	(3.4	)
Other liabilities		378,357		621,181	(39.1	)	378,357		478,497	(20.9	)
Total liabilities		21,262,005		20,239,583	5.1		21,262,005		19,959,556	6.5
Stockholders’ Equity
Common stock		410,008		407,822	.5		410,008		408,770	.3
Additional paid-in capital		1,722,205		1,700,765	1.3		1,722,205		1,730,367	(.5	)
Retained earnings		720,632		676,622	6.5		720,632		533,462	35.1
Accumulated other comprehensive income		(70,733	)	13,730	(615.2	)	(70,733	)	47,836	(247.9	)
Total stockholders’ equity		2,782,112		2,798,939	(.6	)	2,782,112		2,720,435	2.3
Total liabilities and stockholders’ equity	$	24,044,117		23,038,522	4.4		24,044,117		22,679,991	6.0

Page 14

NATIONAL COMMERCE FINANCIAL CORPORATION

Five Quarter End of Period Balance Sheets

(In Thousands Except Share and Per Share Data)

	As of
	6/30/2004			3/31/2004	12/31/2003	9/30/2003	6/30/2003
Assets
Cash and due from banks	$	568,360		458,494	558,313	520,138	536,123
Time deposits in other banks		7,803		4,552	64,174	9,335	5,265
Federal funds sold and other short-term investments		267,182		164,818	129,722	105,629	160,383
Investment securities:
Available for sale		5,116,531		4,858,421	5,238,429	5,254,107	5,311,700
Held to maturity		1,140,777		1,358,756	1,380,571	1,448,778	1,444,517
Trading securities		245,913		257,338	280,649	175,048	105,923
Loans held for sale		334,156		277,778	215,132	364,606	498,447
Loans:
Commercial		4,058,205		3,935,130	3,820,585	3,654,366	3,570,337
Construction and commercial real estate		3,919,168		3,765,122	3,723,336	3,854,437	3,719,164
Mortgage		1,161,352		970,923	933,057	939,532	783,615
Consumer		4,832,412		4,531,275	4,342,695	4,238,782	4,128,195
Revolving credit		88,821		85,718	84,534	81,916	79,437
Lease financing		131,312		130,399	130,741	128,741	130,698
Total portfolio loans		14,191,270		13,418,567	13,034,948	12,897,774	12,411,446
Allowance for loan losses		178,438		173,384	170,452	172,186	167,316
Net loans		14,012,832		13,245,183	12,864,496	12,725,588	12,244,130
Bank owned life insurance		349,473		244,842	241,481	237,840	233,452
Investment in First Market Bank		35,214		33,811	32,527	31,309	29,995
Premises and equipment		245,279		261,699	266,401	273,395	275,612
Goodwill		1,090,101		1,090,117	1,085,565	1,085,565	1,083,157
Core deposit intangibles		145,899		158,800	172,658	187,867	204,959
Other assets		484,597		623,913	486,798	470,884	546,328
Total assets	$	24,044,117		23,038,522	23,016,916	22,890,089	22,679,991
Liabilities
Deposits:
Demand deposits (noninterest-bearing)	$	2,862,746		2,705,354	2,602,026	2,672,509	2,657,291
Savings, NOW and money market accounts		5,804,172		5,871,488	5,878,002	5,813,981	5,849,113
Jumbo and brokered certificates of deposit		2,464,471		2,321,673	2,206,736	2,277,003	2,063,785
Time deposits		4,883,076		4,892,453	4,862,823	4,695,840	4,876,012
Total deposits		16,014,465		15,790,968	15,549,587	15,459,333	15,446,201
Short-term borrowings		1,708,305		1,671,568	1,671,908	1,641,172	1,465,425
FHLB advances		2,875,720		1,875,893	2,301,191	2,324,433	2,274,384
Trust preferred securities and long-term debt		285,158		279,973	277,996	303,248	295,049
Other liabilities		378,357		621,181	435,048	432,500	478,497
Total liabilities		21,262,005		20,239,583	20,235,730	20,160,686	19,959,556
Stockholders’ Equity
Common stock		410,008		407,822	410,273	409,617	408,770
Additional paid-in-capital		1,722,205		1,700,765	1,738,157	1,736,411	1,730,367
Retained earnings		720,632		676,622	627,406	578,249	533,462
Accumulated other comprehensive income		(70,733	)	13,730	5,350	5,126	47,836
Total stockholders’ equity		2,782,112		2,798,939	2,781,186	2,729,403	2,720,435
Total liabilities and stockholders’ equity	$	24,044,117		23,038,522	23,016,916	22,890,089	22,679,991

Page 15

NATIONAL COMMERCE FINANCIAL CORPORATION

Year to Date Rollforward of Stockholders’ Equity

(In Thousands Except for Share Data)

	Shares of Common Stock		Common Stock			Additional Paid-In Capital		Retained Earnings		Other Comp. Income		Total Stockholders’ Equity
Balance January 1, 2003	205,408,183		$	410,816		1,753,241		467,641		50,734		2,682,432
Net income	—			—		—		135,597		—		135,597
Restricted stock transactions, net	1,693			3		1,258		—		—		1,261
Options exercised, net of shares tendered	472,596			947		5,607		—		—		6,554
Shares repurchased and retired	(1,474,300	)		(2,949	)	(29,272	)	—		—		(32,221	)
Cash dividends ($.34 per share)	—			—		—		(69,776	)	—		(69,776	)
Change in minimum pension liability, net of applicable income taxes	—			—		—		—		(742	)	(742	)
Change in unrealized losses on investment securities available for sale, net of applicable income taxes	—			—		—		—		(1,955	)	(1,955	)
Change in unrealized loss on hedging instruments, net of applicable income taxes	—			—		—		—		(201	)	(201	)
Other transactions, net	(23,394	)		(47	)	(467	)	—		—		(514	)
Balance June 30, 2003	204,384,778		$	408,770		1,730,367		533,462		47,836		2,720,435
Balance January 1, 2004	205,136,649		$	410,273		1,738,157		627,406		5,350		2,781,186
Net income	—			—		—		175,335		—		175,335
Restricted stock transactions, net	37,200			74		297		—		—		371
Options exercised, net of shares tendered	2,128,005			4,257		45,328		—		—		49,585
Shares repurchased and retired	(2,408,906	)		(4,818	)	(62,532	)	—		—		(67,350	)
Cash dividends ($.40 per share)	—			—		—		(82,108	)	—		(82,108	)
Change in minimum pension liability, net of applicable income taxes	—			—		—		—		(113	)	(113	)
Change in unrealized gains on investment securities available for sale, net of applicable income taxes	—			—		—		—		(72,735	)	(72,735	)
Change in unrealized loss on hedging instruments, net of applicable income taxes	—			—		—		—		(3,236	)	(3,236	)
Other transactions, net	111,001			222		955		—		—		1,177
Balance June 30, 2004	205,003,949		$	410,008		1,722,205		720,633		(70,734	)	2,782,112

Page 16

NATIONAL COMMERCE FINANCIAL CORPORATION

Current Quarter Asset Quality Analysis

(In Thousands )

	As Of And For The Three Months Ended					% Inc/(Decr)		As Of And For The Three Months Ended				% Inc/(Decr)
	6/30/04			3/31/04				6/30/04		6/30/03
Allowance For Loan Losses
Beginning balance	$	173,384		170,452		1.7		173,384		162,842		6.5
Charge-offs:
Commercial		(1,820	)	(1,600	)	13.8		(1,820	)	(893	)	103.8
Construction and commercial real estate		—		—		—		—		(84	)	(100.0	)
Secured by real estate		(1,620	)	(1,022	)	58.5		(1,620	)	(1,375	)	17.8
Consumer		(5,150	)	(6,565	)	(21.6	)	(5,150	)	(6,289	)	(18.1	)
Revolving credit		(1,095	)	(1,109	)	(1.3	)	(1,095	)	(1,133	)	(3.4	)
Lease financing		(176	)	(405	)	(56.5	)	(176	)	(605	)	(70.9	)
Total charge-offs		(9,861	)	(10,701	)	(7.8	)	(9,861	)	(10,379	)	(5.0	)
Recoveries:
Commercial		690		219		215.1		690		261		164.4
Construction and commercial real estate		1		1		.0		1		1		.0
Secured by real estate		34		50		(32.0	)	34		69		(50.7	)
Consumer		997		967		3.1		997		824		21.0
Revolving credit		335		234		43.2		335		290		15.5
Lease financing		13		74		(82.4	)	13		32		(59.4	)
Total recoveries		2,070		1,545		34.0		2,070		1,477		40.1
Net charge-offs		(7,791	)	(9,156	)	(14.9	)	(7,791	)	(8,902	)	(12.5	)
Provision for loan losses		12,845		12,088		6.3		12,845		13,376		(4.0	)
Changes from acquisitions (sales)		—		—		—		—		—		—
Ending balance	$	178,438		173,384		2.9		178,438		167,316		6.6
Nonperforming Assets
Nonaccrual loans by loan type:
Commercial	$	17,789		15,100		17.8		17,789		20,151		(11.7	)
Construction and commercial real estate		12,166		12,455		(2.3	)	12,166		7,014		73.5
Secured by real estate		2,185		2,660		(17.9	)	2,185		1,901		14.9
Consumer		4,787		3,733		28.2		4,787		3,227		48.3
Lease financing		711		777		(8.5	)	711		1,550		(54.1	)
Total nonperforming loans		37,638		34,725		8.4		37,638		33,843		11.2
Foreclosed real estate		22,619		23,225		(2.6	)	22,619		23,961		(5.6	)
Nonperforming loans and foreclosed real estate		60,257		57,950		4.0		60,257		57,804		4.2
Other repossessed assets		5,125		6,108		(16.1	)	5,125		8,420		(39.1	)
Nonperforming assets	$	65,382		64,058		2.1		65,382		66,224		(1.3	)
Ninety days past due and accruing	$	65,722		65,275		.7		65,722		51,761		27.0
Asset Quality Ratios (1)
Net charge-offs (annualized) by loan type:
Commercial		.11	%	.14				.11		.07
Construction and commercial real estate		.00		.00				.00		.01
Secured by real estate		.59		.41				.59		.68
Consumer		.36		.51				.36		.54
Revolving credit		3.53		4.13				3.53		4.33
Lease financing		.50		1.02				.50		1.72
Net loans charged-off (annualized) to average loans		.23		.28				.23		.29
Nonperforming loans to loans		.27		.26				.27		.27
Nonperforming loans and foreclosed real estate to loans and foreclosed real estate		.42		.43				.42		.46
Nonperforming assets to loans plus foreclosed real estate and other repossessed assets		.46		.48				.46		.53
Loan loss allowance to loans outstanding		1.26		1.29				1.26		1.35
Loan loss allowance to net charge-offs (annualized)		5.69	x	4.71				5.69		4.69
Loan loss allowance to nonperforming loans		4.74		4.99				4.74		4.94

(1) Ratios computed excluding loans held for sale.

Page 17

NATIONAL COMMERCE FINANCIAL CORPORATION

Five Quarter Asset Quality Analysis

(In Thousands)

	As Of And For The Three Months Ended
	6/30/2004			3/31/2004		12/31/2003		9/30/2003		6/30/2003
Allowance For Loan Losses
Beginning balance	$	173,384		170,452		172,186		167,316		162,842
Charge-offs:
Commercial		(1,820	)	(1,600	)	(7,348	)	(3,023	)	(893	)
Construction and commercial real estate		—		—		(106	)	(19	)	(84	)
Secured by real estate		(1,620	)	(1,022	)	(1,140	)	(1,833	)	(1,375	)
Consumer		(5,150	)	(6,565	)	(6,048	)	(5,355	)	(6,289	)
Revolving credit		(1,095	)	(1,109	)	(1,016	)	(1,077	)	(1,133	)
Lease financing		(176	)	(405	)	(849	)	(146	)	(605	)
Total charge-offs		(9,861	)	(10,701	)	(16,507	)	(11,453	)	(10,379	)
Recoveries:
Commercial		690		219		1,280		218		261
Construction and commercial real estate		1		1		1		22		1
Secured by real estate		34		50		70		145		69
Consumer		997		967		693		705		824
Revolving credit		335		234		250		240		290
Lease financing		13		74		97		21		32
Total recoveries		2,070		1,545		2,391		1,351		1,477
Net charge-offs		(7,791	)	(9,156	)	(14,116	)	(10,102	)	(8,902	)
Provision for loan losses		12,845		12,088		12,382		14,972		13,376
Changes from acquisitions (sales)		—		—		—		—		—
Ending balance	$	178,438		173,384		170,452		172,186		167,316
Nonperforming Assets
Nonaccrual loans by loan type:
Commercial	$	17,789		15,100		13,991		15,691		20,151
Construction and commercial real estate		12,166		12,455		10,944		13,911		7,014
Secured by real estate		2,185		2,660		1,701		239		1,901
Consumer		4,787		3,733		2,916		4,734		3,227
Lease financing		711		777		1,137		1,408		1,550
Total nonperforming loans		37,638		34,725		30,689		35,983		33,843
Foreclosed real estate		22,619		23,225		28,196		25,500		23,961
Nonperforming loans and foreclosed real estate		60,257		57,950		58,885		61,483		57,804
Other repossessed assets		5,125		6,108		4,638		5,138		8,420
Nonperforming assets	$	65,382		64,058		63,523		66,621		66,224
Ninety days past due and accruing	$	65,722		65,275		64,457		59,691		51,761
Asset Quality Ratios (1)
Net charge-offs (annualized) by loan type:
Commercial		.11	%	.14		.65		.31		.07
Construction and commercial real estate		.00		.00		.01		.00		.01
Secured by real estate		.59		.41		.43		.68		.68
Consumer		.36		.51		.50		.44		.54
Revolving credit		3.53		4.13		3.66		4.12		4.33
Lease financing		.50		1.02		2.33		.38		1.72
Net loans charged-off (annualized) to average loans		.23		.28		.43		.31		.29
Nonperforming loans to loans		.27		.26		.24		.28		.27
Nonperforming loans and foreclosed real estate to loans and foreclosed real estate		.42		.43		.45		.48		.46
Nonperforming assets to loans plus foreclosed real estate and other repossessed assets		.46		.48		.49		.52		.53
Loan loss allowance to loans outstanding		1.26		1.29		1.31		1.34		1.35
Loan loss allowance to net charge-offs (annualized)		5.69	x	4.71		3.04		4.30		4.69
Loan loss allowance to nonperforming loans		4.74		4.99		5.55		4.79		4.94

(1) Ratios computed excluding loans held for sale.

Page 18

NATIONAL COMMERCE FINANCIAL CORPORATION

Year to Date Asset Quality Analysis

(In Thousands)

	As Of And For The Six Months Ended					$ Change		% Inc/(Decr)
	6/30/04			6/30/03
Allowance For Loan Losses
Beginning balance	$	170,452		163,424		7,028		4.3
Charge-offs:
Commercial		(3,420	)	(2,334	)	(1,086	)	46.5
Construction and commercial real estate		—		(225	)	225		(100.0	)
Secured by real estate		(2,642	)	(2,102	)	(540	)	25.7
Consumer		(11,715	)	(12,266	)	551		(4.5	)
Revolving credit		(2,204	)	(2,074	)	(130	)	6.3
Lease financing		(581	)	(658	)	77		(11.7	)
Total charge-offs		(20,562	)	(19,659	)	(903	)	4.6
Recoveries:
Commercial		909		534		375		70.2
Construction and commercial real estate		2		8		(6	)	(75.0	)
Secured by real estate		84		95		(11	)	(11.6	)
Consumer		1,964		1,755		209		11.9
Revolving credit		569		612		(43	)	(7.0	)
Lease financing		87		69		18		26.1
Total recoveries		3,615		3,073		542		17.6
Net charge-offs		(16,947	)	(16,586	)	(361	)	2.2
Provision for loan losses		24,933		21,060		3,873		18.4
Changes from acquisitions (sales)		—		(582	)	582		(100.0	)
Ending balance	$	178,438		167,316		11,122		6.6
Asset Quality Ratios (1)
Net charge-offs by loan type:
Commercial		.13	%	.11
Construction and commercial real estate		.00		.01
Secured by real estate		.50		.42
Consumer		.43		.53
Revolving credit		3.83		3.80
Lease financing		.76		.88
Net loans charged-off (annualized) to average loans		.25		.27
Loan loss allowance to loans outstanding		1.26		1.35
Loan loss allowance to net charge-offs (annualized)		5.24	x	5.00

(1) Ratios computed excluding loans held for sale.

Page 19

NATIONAL COMMERCE FINANCIAL CORPORATION

Five Quarter Average Balance Sheets and Net Interest Income Analysis

(In Thousands Except Share and Per Share Data)

	Three Months Ended
	6/30/2004						3/31/2004			12/31/2003			9/30/2003				6/30/2003
Taxable Equivalent Basis (1)	Average Balance		Interest		Average Yield/Rate		Average Balance	Interest	Average Yield/Rate	Average Balance	Interest	Average Yield/Rate	Average Balance	Interest		Average Yield/Rate	Average Balance	Interest	Average Yield/Rate
Earning assets:
Total loans (2)	$	14,033,307		190,774	5.46	%	13,451,587	184,637	5.52	13,219,321	190,799	5.73	13,065,302	188,073		5.72	12,614,546	190,239	6.05
Investment securities (3)		6,406,063		76,619	4.78		6,642,411	79,991	4.82	6,626,168	79,588	4.80	6,688,614	78,420		4.69	6,674,537	80,778	4.84
Trading securities		308,778		2,264	2.93		259,602	1,934	2.98	188,287	1,463	3.11	136,198	416		1.22	120,999	437	1.44
Time deposits in other banks		4,467		10	.87		38,023	408	4.31	64,169	814	5.03	5,726	16		1.11	5,742	17	1.21
Federal funds sold and other short-term investments		275,289		645	.94		178,951	374	.84	142,362	311	.87	148,627	287		.76	107,462	340	1.27
Total earning assets		21,027,904		270,312	5.16		20,570,574	267,344	5.22	20,240,307	272,975	5.37	20,044,467	267,212		5.31	19,523,286	271,811	5.58
Non-earning assets:
Cash and due from banks		459,043					431,289			458,469			450,576				422,653
Bank owned life insurance		331,286					243,306			239,161			235,741				231,397
Investment in First Market Bank		34,342					32,946			31,803			30,471				29,248
Premises and equipment		261,521					265,599			271,113			276,435				276,227
Goodwill		1,090,126					1,087,115			1,085,565			1,083,340				1,082,077
Core deposit intangibles		152,523					165,967			180,879			197,593				213,065
Other assets, net		385,145					347,268			338,401			408,676				395,442
Total assets	$	23,741,890					23,144,064			22,845,698			22,727,299				22,173,395
															��
Interest-bearing liabilities
Interest-bearing deposits:
Savings, NOW and money market accounts	$	5,824,697		8,839	.61	%	5,816,757	8,990	.62	5,799,594	9,287	.63	5,845,036	9,372		.64	5,765,351	11,006	.76
Jumbo and brokered certificates of deposit		2,522,513		7,073	1.13		2,290,967	6,416	1.13	2,207,988	6,354	1.14	2,166,011	6,452		1.18	2,032,881	7,378	1.46
Time deposits		4,865,314		31,198	2.58		4,913,286	32,353	2.65	4,789,305	32,769	2.71	4,770,283	33,981		2.82	4,915,988	36,800	3.00
Total interest-bearing deposits		13,212,524		47,110	1.43		13,021,010	47,759	1.48	12,796,887	48,410	1.50	12,781,330	49,805		1.55	12,714,220	55,184	1.74
Short-term borrowings		1,741,327		4,924	1.14		1,697,317	4,565	1.08	1,685,250	4,532	1.06	1,608,179	4,619		1.14	1,388,604	4,698	1.37
FHLB advances		2,495,581		15,968	2.57		2,351,862	15,602	2.67	2,312,746	15,722	2.70	2,218,184	18,236		3.26	2,197,173	21,397	3.91
Trust preferred securities and long-term debt (4)		282,425		1,545	2.19		278,344	1,530	2.20	299,867	1,920	2.56	297,701	2,036		2.74	299,247	2,133	2.81
Total interest-bearing liabilities		17,731,857		69,547	1.58		17,348,533	69,456	1.61	17,094,750	70,584	1.64	16,905,394	74,696		1.75	16,599,244	83,412	2.02
Other liabilities and stock- holders’ equity:
Demand deposits (noninterest-bearing)		2,700,613					2,514,792			2,554,870			2,565,673				2,375,641
Other liabilities		483,149					497,784			450,613			522,151				495,573
Stockholders’ equity		2,826,271					2,782,955			2,745,465			2,734,081				2,702,937
Total liabilities and stock- holders’ equity	$	23,741,890					23,144,064			22,845,698			22,727,299				22,173,395
Net interest income and margin			$	200,765	3.83	%		197,888	3.86		202,391	3.98		192,516		3.83		188,399	3.86
Interest rate spread					3.58	%			3.61			3.73				3.56			3.56

(1) The taxable equivalent basis is computed using 35 percent federal and applicable state tax rates. A reconciliation of taxable equivalent interest income, a non-GAAP measure, to GAAP interest income for each of the quarters is provided below:

	6/30/04		3/31/04	12/31/03	9/30/03	6/30/03
Taxable equivalent interest income	$	270,312	267,344	272,975	267,212	271,811
Less taxable equivalent adjustment for:
Loans		1,492	1,655	1,792	1,993	2,140
Investment securities		5,272	5,153	5,157	5,022	4,909
Trading account securities		15	9	14	41	165
Federal funds sold and other short-term investments		—	—	—	1	4
GAAP interest income	$	263,533	260,527	266,012	260,155	264,593

(2) Includes loans held for sale.

(3) Average balances exclude the mark-to-market adjustment on available for sale securities under Statement of Financial Accounting Standards No. 115.

(4) NCF adopted the provisions of FASB Interpretation No. 46 in the fourth quarter of 2003 and deconsolidated entities that had issued trust preferred securities.

Page 20

NATIONAL COMMERCE FINANCIAL CORPORATION

Year to Date Average Balance Sheets and Net Interest Income Analysis

(In Thousands Except Share and Per Share Data)

	Six Months Ended
	6/30/2004						6/30/2003
Taxable Equivalent Basis (1)	Average Balance		Interest		Average Yield/Rate		Average Balance	Interest	Average Yield/Rate
Earning assets:
Total loans (2)	$	13,503,093		375,411	5.49	%	12,296,600	390,100	6.19
Investment securities (3)		6,524,237		156,611	4.80		6,193,294	150,455	4.86
Trading securities		284,190		4,197	2.95		104,340	1,023	1.96
Time deposits in other banks		21,245		417	3.95		7,648	42	1.11
Federal funds sold and other short-term investments		227,120		1,020	.90		79,480	507	1.29
Total earning assets		20,559,885		537,656	5.19		18,681,362	542,127	5.71
Non-earning assets:
Cash and due from banks		445,166					410,675
Bank owned life insurance		287,296					229,814
Investment in First Market Bank		33,644					28,803
Premises and equipment		263,600					267,469
Goodwill		1,088,621					1,079,613
Core deposit intangibles		159,245					221,010
Other assets, net		605,656					816,606
Total assets	$	23,443,113					21,735,352
Interest-bearing liabilities
Interest-bearing deposits:
Savings, NOW and money market accounts	$	5,820,727		17,829	.62	%	5,725,246	22,963	.81
Jumbo and brokered certificates of deposit		2,406,740		13,489	1.13		1,915,194	14,567	1.53
Time deposits		4,889,300		63,551	2.62		4,912,935	74,942	3.08
Total interest-bearing deposits		13,116,767		94,869	1.45		12,553,375	112,472	1.81
Short-term borrowings		1,719,322		9,489	1.11		1,319,415	9,066	1.38
FHLB advances		2,423,721		31,570	2.62		2,127,422	43,515	4.12
Trust preferred securities and long-term debt		280,384		3,075	2.19		298,003	4,293	2.88
Total interest-bearing liabilities		17,540,194		139,003	1.59		16,298,215	169,346	2.09
Other liabilities and stockholders’ equity:
Demand deposits (noninterest-bearing)		2,607,703					2,258,620
Other liabilities		490,596					479,106
Stockholders’ equity		2,804,620					2,699,411
Total liabilities and stockholders’ equity	$	23,443,113					21,735,352
Net interest income and margin			$	398,653	3.84	%		372,781	3.92
Interest rate spread					3.60	%			3.62
(1)    The taxable equivalent basis is computed using 35 percent federal and applicable state tax rates. A reconciliation of taxable equivalent interest income, a non-GAAP measure, to GAAP interest income is provided below:
Taxable equivalent interest income			$	537,656				542,127
Less taxable equivalent adjustment for:
Loans				3,147				4,332
Investment securities				10,425				9,791
Trading account securities				24				27
Federal funds sold and other short-term investments				—				8
GAAP interest income			$	524,060				527,969

(2) Includes loans held for sale.

(3) Average balances exclude the mark-to-market adjustment on available for sale securities under Statement of Financial Accounting Standards No. 115.

Page 21

NATIONAL COMMERCE FINANCIAL CORPORATION

Reconcilement of Non-GAAP Measures

(In Thousands)

	As Of And For The Three Months Ended					% Change Fav/(Unfav)		As Of And For The Three Months Ended				% Inc/(Decr)
	6/30/04			3/31/04				6/30/04		6/30/03
GAAP Noninterest Expense to Cash Operating Noninterest Expense
Fully Consolidated
GAAP noninterest expense	$	174,657		163,726		(6.7	)	174,657		180,604		3.3
Less: Core deposit intangible amortization		(12,901	)	(13,639	)	5.4		(12,901	)	(15,673	)	17.7
First Mercantile litigation		—		—		—		—		(1,041	)	100.0
Employment contract terminations		—		—		—		—		(14,108	)	100.0
Debt retirement/prepayment (penalties) gains		—		—		—		—		326		100.0
Merger-related expenses		(8,290	)	—		—		(8,290	)	—		—
Other items (1)		(2,123	)	(2,543	)	16.5		(2,123	)	—		—
Cash operating noninterest expense	$	151,343		147,544		(2.6	)	151,343		150,108		(.8	)
Traditional Banking Segment
GAAP noninterest expense	$	133,991		125,395		(6.9	)	133,991		140,768		4.8
Less: Core deposit intangible amortization		(12,901	)	(13,639	)	5.4		(12,901	)	(15,673	)	17.7
Employment contract terminations		—		—		—		—		(14,108	)	100.0
Debt retirement/prepayment (penalties) gains		—		—		—		—		326		100.0
Merger-related expenses		(8,290	)	—		—		(8,290	)	—		—
Other items (1)		(2,123	)	(2,543	)	16.5		(2,123	)	—		—
Cash operating noninterest expense	$	110,677		109,213		(1.3	)	110,677		111,313		.6
Financial Enterprises Segment
GAAP noninterest expense	$	42,591		40,295		(5.7	)	42,591		41,934		(1.6	)
Less: First Mercantile litigation		—		—		—		—		(1,041	)	100.0
Cash operating noninterest expense	$	42,591		40,295		(5.7	)	42,591		40,893		(4.2	)
Total Revenues to Operating Revenues
Fully Consolidated
Net interest income (TE) (2)	$	200,765		197,888		1.5		200,765		188,399		6.6
GAAP noninterest income		124,248		119,938		3.6		124,248		117,418		5.8
Total revenues	$	325,013		317,826		2.3		325,013		305,817		6.3
GAAP noninterest income	$	124,248		119,938		3.6		124,248		117,418		5.8
Less: (Gain) loss on branch sales		(714	)	(45	)	N/A		(714	)	—		—
Investment securities (gains) losses		(66	)	(10,918	)	(99.4	)	(66	)	(2,460	)	(97.3	)
Operating noninterest revenues		123,468		108,975		13.3		123,468		114,958		7.4
Net interest income (TE)		200,765		197,888		1.5		200,765		188,399		6.6
Operating revenues	$	324,233		306,863		5.7		324,233		303,357		6.9
Traditional Banking Segment
Net interest income (TE)	$	193,524		190,886		1.4		193,524		183,113		5.7
GAAP noninterest income		69,764		68,834		1.4		69,764		65,301		6.8
Total revenues	$	263,288		259,720		1.4		263,288		248,414		6.0
GAAP noninterest income	$	69,764		68,834		1.4		69,764		65,301		6.8
Less: (Gain) loss on branch sales		(714	)	(45	)	N/A		(714	)	—		—
Investment securities (gains) losses		(66	)	(10,918	)	(99.4	)	(66	)	(2,460	)	(97.3	)
Operating noninterest revenues		68,984		57,871		19.2		68,984		62,841		9.8
Net interest income (TE)		193,524		190,886		1.4		193,524		183,113		5.7
Operating revenues	$	262,508		248,757		5.5		262,508		245,954		6.7
Financial Enterprises Segment
Net interest income (TE)	$	7,241		7,002		3.4		7,241		5,286		37.0
GAAP noninterest income		56,409		53,068		6.3		56,409		54,215		4.0
Total and operating revenues	$	63,650		60,070		6.0		63,650		59,501		7.0

(1) Comprised of expenses related to consulting project, severance and branch closures.

(2) Taxable equivalent interest income is reconciled to GAAP interest income on Page 20.

(3) Inter-segment eliminations are not separately presented.

Page 22

NATIONAL COMMERCE FINANCIAL CORPORATION

Reconcilement of Non-GAAP Measures

(In Thousands)

	As Of And For The Three Months Ended
	6/30/2004			3/31/2004		12/31/2003		9/30/2003		6/30/2003
GAAP Noninterest Expense to Cash Operating Noninterest Expense
Fully Consolidated
GAAP noninterest expense	$	174,657		163,726		162,236		201,495		180,604
Less: Core deposit intangible amortization		(12,901	)	(13,639	)	(14,337	)	(15,062	)	(15,673	)
First Mercantile litigation		—		—		—		—		(1,041	)
Employment contract terminations		—		—		(987	)	(604	)	(14,108	)
Debt retirement/prepayment (penalties) gains		—		—		—		(31,987	)	326
Merger-related expenses		(8,290	)	—		—		—		—
Other items (1)		(2,123	)	(2,543	)	(1,021	)	(1,722	)	—
Cash operating noninterest expense	$	151,343		147,544		145,891		152,120		150,108
Traditional Banking Segment
GAAP noninterest expense	$	133,991		125,395		124,714		162,499		140,768
Less: Core deposit intangible amortization		(12,901	)	(13,639	)	(14,337	)	(15,062	)	(15,673	)
Employment contract terminations		—		—		(987	)	(604	)	(14,108	)
Debt retirement/prepayment (penalties) gains		—		—		—		(31,987	)	326
Merger-related expenses		(8,290	)	—		—		—		—
Other items (1)		(2,123	)	(2,543	)	(1,021	)	(1,722	)	—
Cash operating noninterest expense	$	110,677		109,213		108,369		113,124		111,313
Financial Enterprises Segment
GAAP noninterest expense	$	42,591		40,295		39,367		40,938		41,934
Less: First Mercantile litigation		—		—		—		—		(1,041	)
Cash operating noninterest expense	$	42,591		40,295		39,367		40,938		40,893
Total Revenues to Operating Revenues
Fully Consolidated
Net interest income (TE) (2)	$	200,765		197,888		202,391		192,516		188,399
GAAP noninterest income		124,248		119,938		111,705		121,004		117,418
Total revenues	$	325,013		317,826		314,096		313,520		305,817
GAAP noninterest income	$	124,248		119,938		111,705		121,004		117,418
Less: (Gain) loss on branch sales		(714	)	(45	)	(2,200	)	(7,055	)	—
Investment securities (gains) losses		(66	)	(10,918	)	(3,338	)	4,512		(2,460	)
Operating noninterest revenues		123,468		108,975		106,167		118,461		114,958
Net interest income (TE)		200,765		197,888		202,391		192,516		188,399
Operating revenues	$	324,233		306,863		308,558		310,977		303,357
Traditional Banking Segment
Net interest income (TE)	$	193,524		190,886		195,876		187,218		183,113
GAAP noninterest income		69,764		68,834		65,446		70,981		65,301
Total revenues	$	263,288		259,720		261,322		258,199		248,414
GAAP noninterest income	$	69,764		68,834		65,446		70,981		65,301
Less: (Gain) loss on branch sales		(714	)	(45	)	(2,200	)	(7,055	)	—
Investment securities (gains) losses		(66	)	(10,918	)	(3,338	)	4,512		(2,460	)
Operating noninterest revenues		68,984		57,871		59,908		68,438		62,841
Net interest income (TE)		193,524		190,886		195,876		187,218		183,113
Operating revenues	$	262,508		248,757		255,784		255,656		245,954
Financial Enterprises Segment
Net interest income (TE)	$	7,241		7,002		6,515		5,298		5,286
GAAP noninterest income		56,409		53,068		48,104		51,965		54,215
Total and operating revenues	$	63,650		60,070		54,619		57,263		59,501

(1) Comprised of expenses related to consulting project, severance and branch closures.

(2) Taxable equivalent interest income is reconciled to GAAP interest income on Page 20.

(3) Inter-segment eliminations are not separately presented.

Page 23

NATIONAL COMMERCE FINANCIAL CORPORATION

Reconcilement of Non-GAAP Measures

(In Thousands)

	As Of And For The Three Months Ended
	6/30/2004			3/31/2004	12/31/2003	9/30/2003	6/30/2003
Efficiency Ratio (TE) to Cash Operating Efficiency Ratio (TE) (1)
Fully Consolidated
GAAP noninterest expense	$	174,657		163,726	162,236	201,495	180,604
Total revenues		325,013		317,826	314,096	313,520	305,817
Efficiency ratio (TE)		53.74	%	51.51	51.65	64.27	59.06
Cash operating noninterest expense	$	151,343		147,544	145,891	152,120	150,108
Operating revenues		324,233		306,863	308,558	310,977	303,357
Cash operating efficiency ratio (TE)		46.68	%	48.08	47.28	48.92	49.48
Traditional Banking Segment
GAAP noninterest expense	$	133,991		125,395	124,714	162,499	140,768
Total revenues		263,288		259,720	261,322	258,199	248,414
Efficiency ratio (TE)		50.89	%	48.28	47.72	62.94	56.67
Cash operating noninterest expense	$	110,677		109,213	108,369	113,124	111,313
Operating revenues		262,508		248,757	255,784	255,656	245,954
Cash operating efficiency ratio (TE)		42.16	%	43.90	42.37	44.25	45.26
Financial Enterprises Segment
GAAP noninterest expense	$	42,591		40,295	39,367	40,938	41,934
Total revenues		63,650		60,070	54,619	57,263	59,501
Efficiency ratio (TE)		66.91	%	67.08	72.08	71.49	70.48
Cash operating noninterest expense	$	42,591		40,295	39,367	40,938	40,893
Operating revenues		63,650		60,070	54,619	57,263	59,501
Cash operating efficiency ratio (TE)		66.91	%	67.08	72.08	71.49	68.73
Computation of Net Income excluding Merger-related Expenses
GAAP net income	$	85,091		90,244	90,268	85,809	71,507
Plus: Merger-related expenses		8,290		—	—	—	—
Less: Taxes on merger-related expenses		(580	)	—	—	—	—
Net income, excluding merger-related expenses	$	92,801		90,244	90,268	85,809	71,507

	Six Months Ended
	6/30/04			6/30/03
Computation of Net Income excluding Merger-related Expenses
GAAP net income	$	175,335		135,597
Plus: Merger-related expenses		8,290		—
Less: Taxes on merger-related expenses		(580	)	—
Net income, excluding merger-related expenses	$	183,045		135,597

(1) Taxable equivalent interest income is reconciled to GAAP interest income on Page 20.

Page 24

Additional Information and Where to Find It:

STOCKHOLDERS ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED TRANSACTION WHEN IT BECOMES AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION. Stockholders will be able to obtain a free copy of the joint proxy statement/prospectus, as well as other filings containing information about NCF and SunTrust, without charge, at the Securities and Exchange Commission’s internet site (http://www.sec.gov). Copies of the joint proxy statement/prospectus and the filings with the Securities and Exchange Commission that will be incorporated by reference in the joint proxy statement/prospectus can also be obtained, without charge, by directing a request to SunTrust Banks, Inc., 303 Peachtree St., N.E., Atlanta, Georgia 30308; Attention: Investor Relations; or National Commerce Financial Corporation, One Commerce Square, Memphis, Tennessee, 38159; Attention: Investor Relations.

The respective directors and executive officers of SunTrust and NCF and other persons may be deemed to be participants in the solicitation of proxies in respect of the proposed merger. INFORMATION REGARDING SUNTRUST’S DIRECTORS AND EXECUTIVE OFFICERS IS AVAILABLE IN THE PROXY STATEMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BY SUNTRUST ON MARCH 2, 2004, AND INFORMATION REGARDING NCF’S DIRECTORS AND EXECUTIVE OFFICERS IS AVAILABLE IN THE PROXY STATEMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BY NCF ON MARCH 17, 2004. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the joint proxy statement/prospectus and other relevant materials to be filed with the Securities and Exchange Commission when they become available.