First Horizon (FHN) 8-K Results of Operations and Financial Condition

1

FIRST QUARTER 2019

FINANCIAL SUPPLEMENT

If you need further information, please contact:

Aarti Bowman, Investor Relations

901-523-4017

aagoorha@firsthorizon.com

FHN TABLE OF CONTENTS

	Page
First Horizon National Corporation Segment Structure	3
Performance Highlights	4
Consolidated Results
Income Statement
Income Statement	6
Other Income and Other Expense	7
Balance Sheet
Period End Balance Sheet	8
Average Balance Sheet	9
Net Interest Income	10
Average Balance Sheet: Yields and Rates	11
Capital Highlights	12
Business Segment Detail
Segment Highlights	13
Regional Banking	14
Fixed Income and Corporate	15
Non-Strategic	16
Asset Quality
Asset Quality: Consolidated	17
Asset Quality: Regional Banking and Corporate	19
Asset Quality: Non-Strategic	20
Non-GAAP to GAAP Reconciliation	21
Glossary of Terms	22

Other Information

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

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

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

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

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

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

2

FIRST HORIZON NATIONAL CORPORATION SEGMENT STRUCTURE

3

FHN PERFORMANCE HIGHLIGHTS
Summary of First Quarter 2019 Notable Items
Segment	Item	Income Statement	Amount Favorable/ (Unfavorable)	Comments
Corporate	Restructuring, repositioning, and efficiency initiatives	Noninterest expense: various	$(12.2) million	Primarily pre-tax severance-related costs and professional fees associated with efficiency initiatives
Corporate	Acquisition expenses	Noninterest expense: various	$(5.7) million	Pre-tax acquisition-related expenses primarily associated with the Capital Bank Financial Corp. ("CBF") acquisition
First Quarter 2019 vs. Fourth Quarter 2018

Consolidated								l 1Q19 diluted EPS of $.31 compared to $.30 in 4Q18 l Total revenue up 6% as increase in fee income offset lower NII l Increase in fee income largely due to higher fixed income revenue; 4Q18 fee income includes unfavorable adjustment to debit card income l NII down from decreased loan accretion and fewer days in 1Q19 l NIM of 3.31% in 1Q19 compared to 3.38% in 4Q18; decrease due to increase in interest bearing cash & lower loan accretion l    Loan loss provision increase primarily driven by commercial loan growth & one relationship that was downgraded within Regional Banking    l   Net charge-offs decreased $7.0 million to $4.5 million in 1Q19 l    Deferred compensation net impact of $1.6 million; expense increase of $13.2 million, offset by fee income increase of $11.6 million l    1Q19 includes $12.2 million of restructuring costs and $5.7 million of acquisition-related expenses, compared to $11.6 million of acquisition costs in 4Q18 l    Period-end loan growth reflects a 2% increase in Regional Banking, offset by a 6% run-off in Non-strategic
(Thousands, except per share data)	1Q19		4Q18		Change
Income Statement
Net interest income	$	294,508	$	302,512	(3	)	%
Noninterest income	141,045		110,274		28		%
Total revenues	435,553		412,786		6		%
Provision for loan losses	9,000		6,000		50		%
Noninterest expense	296,090		281,932		5		%
Income before income taxes	130,463		124,854		4		%
Provision for income taxes	27,058		24,049		13		%
Net income/(loss)	$	103,405	$	100,805	3		%
Diluted EPS	$	0.31	$	0.30	3		%
Balance Sheet (millions)
Average Loans	$	27,313	$	27,155	1		%
Average Deposits	32,497		31,848		2		%

Regional Banking								lStrong loan and deposit growth    l Period-end loans up 2%; Period-end deposits up 3%    l  Deposit growth from key markets in Mid-Atlantic & South Florida    l NII down from lower loan accretion, fewer days in 1Q19 & funds transfer pricing methodology with offset in Corporate l    Fee income up 4%; 1Q19 fee income impacted by seasonality in NSF fee income; 4Q18 includes unfavorable adjustment to debit card income l    Provision expense increase primarily driven by commercial loan growth and one relationship that was downgraded during the quarter l   Net charge-offs decreased $7.1 million to $5.5 million in 1Q19 lExpenses down 3% l Broad-based cost savings across multiple line items driven by strategic-focus on expense optimization
(Thousands)	1Q19		4Q18		Change
Net interest income	$	287,157	$	299,640	(4	)	%
Noninterest income	72,117		69,208		4		%
Total revenues	359,274		368,848		(3	)	%
Provision for loan losses	13,958		7,850		78		%
Noninterest expense	199,959		206,372		(3	)	%
Income before income taxes	$	145,357	$	154,626	(6	)	%
PPNR (a)	159,315		162,476		(2	)	%
Balance Sheet (millions)
Period-end loans	$	26,896	$	26,385	2		%
Period-end deposits	30,376		29,370		3		%
(a) Pre-provision net revenue is not a GAAP number but is used in regulatory stress test reporting. The presentation of PPNR in this Financial Supplement follows the regulatory definition.

Fixed Income								l Federal Reserve commentary and outlook for rates to be flat/down favorably impacted 1Q19 activity l1Q19 ADR of $729 thousand, up 48 percent with all trading desks showing growth from 4Q18 l Pre-tax income up from higher ADR and lower fixed expenses
(Thousands)	1Q19		4Q18		Change
Net interest income	$	7,322	$	9,002	(19	)	%
Noninterest income	53,807		39,678		36		%
Total revenues	61,129		48,680		26		%
Noninterest expense	51,227		46,947		9		%
Income before income taxes	$	9,902	$	1,733	NM
NM - Not meaningful

4

FHN PERFORMANCE HIGHLIGHTS (continued)

First Quarter 2019 vs. Fourth Quarter 2018 (continued)

Corporate									l    NII favorably impacted by reduction in market-indexed deposits primarily due to strong deposit growth in Regional Banking l    Deferred compensation net impact of $1.6 million; expense increase of $13.2 million, offset by fee income increase of $11.6 million l    Expense increase also driven by restructuring costs associated with efficiency initiatives, somewhat offset by lower acquisition-related costs
(Thousands)	1Q19			4Q18			Change
Net interest income	$	(7,853	)	$	(15,334	)	49	%
Noninterest income	13,352			(1,411		)	NM
Total revenues	5,499			(16,745		)	NM
Noninterest expense	40,351			23,127			74	%
Income before income taxes	$	(34,852	)	$	(39,872	)	13	%
NM - Not meaningful

Non-Strategic										l  Non-Strategic results reflect continuing wind-down of the loan portfolio
(Thousands)	1Q19			4Q18			Change
Net interest income	$	7,882		$	9,204		(14	)	%
Noninterest income	1,769			2,799			(37	)	%
Total revenues	9,651			12,003			(20	)	%
Provision for loan losses	(4,958		)	(1,850		)	NM
Noninterest expense	4,553			5,486			(17	)	%
Income before income taxes	$	10,056		$	8,367		20		%
Balance Sheet
Average loans	$	1,005		$	1,068		(6	)	%
NM - Not meaningful

Asset Quality									l    Increase in reserves primarily driven by loan growth within the commercial portfolio l    Net charge-offs were $4.5 million in 1Q19 compared to $11.5 million in 4Q18 driven by the C&I and Other Consumer portfolios l    Criticized and classified commercial loans down $78 million    l   Nonperforming loans at 65 bps, up 11 bps, largely due to three C&I credits l    Decrease in 30+ delinquencies driven by payoffs and loans becoming current within the consumer portfolio
(Thousands)	1Q19			4Q18		Change
Allowance for loan losses	$184,911			$180,424		2		%
Allowance / loans %	0.66		%	0.66	%
Net Charge-offs	$	4,513		$11,535		(61	)	%
Net charge-offs %	0.07		%	0.17	%
Nonperforming Loans (a)	$181,625			$147,749		23		%
NPL %	0.65		%	0.54	%
30+ delinquencies	$	63,693		$75,164		(15	)	%
30+ delinquencies %	0.23		%	0.27	%
* Amount is less than one percent.
(a) Excludes loans held-for-sale.

Capital and Liquidity										lIncreased quarterly dividend to $.14 in 1Q19 from $.12 in 4Q18 l Repurchased 3.5 million shares (weighted average price - $14.85) in 1Q19 compared to 5.4 million shares (weighted average price - $15.00) in 4Q18 l$349.0 million remaining authorization under the stock purchase authorization first announced in January 2018, currently scheduled to expire January 31, 2021
(millions)	1Q19			4Q18			Change
Common dividends declared (a)	$	44.3		$	38.4		15		%
Preferred dividends declared	$	1.6		$	1.6		*
Share repurchases	$	51.5		$	80.5		(36	)	%
Capital Ratios (b)
Common Equity Tier 1	9.66		%	9.77		%
Tier 1	10.69		%	10.80		%
Total Capital	11.82		%	11.94		%
Leverage	9.02		%	9.09		%
NM - Not meaningful
* Amount is less than one percent.
(a) 1Q19 common dividends paid April 1, 2019; 4Q18 common dividends paid January 2, 2019.
(b) Regulatory capital ratios calculated under the Basel III risk-based capital rules as phased-in; current quarter is an estimate.

5

FHN CONSOLIDATED INCOME STATEMENT

Quarterly, Unaudited

																1Q19 Changes vs.
(Dollars in thousands, except per share data)	1Q19			4Q18			3Q18			2Q18			1Q18			4Q18			1Q18
Interest income	$	400,615		$	401,186		$	393,669		$	387,811		$	363,355		*			10		%
Less: interest expense	106,107			98,674			87,969			76,879			62,182			8		%	71		%
Net interest income	294,508			302,512			305,700			310,932			301,173			(3	)	%	(2	)	%
Provision/(provision credit) for loan losses	9,000			6,000			2,000			—			(1,000		)	50		%	NM
Net interest income after provision for loan losses	285,508			296,512			303,700			310,932			302,173			(4	)	%	(6	)	%
Noninterest income:
Fixed income (a)	53,749			39,866			44,813			37,697			45,506			35		%	18		%
Deposit transactions and cash management (b)	31,621			25,422			35,792			36,083			35,984			24		%	(12	)	%
Brokerage, management fees and commissions	12,633			13,380			14,200			13,740			13,483			(6	)	%	(6	)	%
Trust services and investment management	7,026			6,959			7,438			8,132			7,277			1		%	(3	)	%
Bankcard income	6,015			6,760			6,878			6,635			6,445			(11	)	%	(7	)	%
Bank-owned life insurance	4,402			4,852			4,337			5,773			3,993			(9	)	%	10		%
Securities gains/(losses), net (c)	31			(28		)	212,859			31			86			NM			(64	)	%
Other (d)	25,568			13,063			22,655			19,434			23,243			96		%	10		%
Total noninterest income	141,045			110,274			348,972			127,525			136,017			28		%	4		%
Adjusted gross income after provision for loan losses	426,553			406,786			652,672			438,457			438,190			5		%	(3	)	%
Noninterest expense:
Employee compensation, incentives, and benefits (e)	177,925			156,240			164,839			165,890			171,254			14		%	4		%
Repurchase and foreclosure provision (f)	(455		)	(153		)	(562		)	(252		)	(72		)	NM			NM
Legal fees	2,831			3,479			2,541			2,784			2,345			(19	)	%	21		%
Professional fees (g)	12,299			8,842			9,270			15,415			12,272			39		%	*
Occupancy	20,693			22,053			20,002			22,503			20,451			(6	)	%	1		%
Computer software	15,139			14,656			15,693			15,123			15,132			3		%	*
Contract employment and outsourcing	3,371			4,248			4,314			5,907			4,053			(21	)	%	(17	)	%
Operations services	11,488			12,945			13,121			14,653			15,561			(11	)	%	(26	)	%
Equipment rentals, depreciation, and maintenance	8,829			8,983			9,423			10,708			10,018			(2	)	%	(12	)	%
FDIC premium expense (h)	4,273			5,200			7,850			9,978			8,614			(18	)	%	(50	)	%
Advertising and public relations	7,242			7,718			8,365			5,070			3,599			(6	)	%	NM
Communications and courier	6,453			7,256			7,014			7,530			8,232			(11	)	%	(22	)	%
Amortization of intangible assets	6,216			6,461			6,460			6,460			6,474			(4	)	%	(4	)	%
Other (d)	19,786			24,004			25,701			50,999			35,332			(18	)	%	(44	)	%
Total noninterest expense	296,090			281,932			294,031			332,768			313,265			5		%	(5	)	%
Income before income taxes	130,463			124,854			358,641			105,689			124,925			4		%	4		%
Provision for income taxes (i)	27,058			24,049			83,925			19,697			29,931			13		%	(10	)	%
Net income/(loss)	103,405			100,805			274,716			85,992			94,994			3		%	9		%
Net income attributable to noncontrolling interest	2,820			2,910			2,883			2,852			2,820			(3	)	%	*
Net income/(loss) attributable to controlling interest	100,585			97,895			271,833			83,140			92,174			3		%	9		%
Preferred stock dividends	1,550			1,550			1,550			1,550			1,550			*			*
Net income/(loss) available to common shareholders	$	99,035		$	96,345		$	270,283		$	81,590		$	90,624		3		%	9		%
Common Stock Data
EPS (c)	$	0.31		$	0.30		$	0.83		$	0.25		$	0.28		3		%	11		%
Basic shares (thousands)	317,435			321,505			324,406			325,153			326,489			(1	)	%	(3	)	%
Diluted EPS	$	0.31		$	0.30		$	0.83		$	0.25		$	0.27		3		%	15		%
Diluted shares (thousands)	319,581			323,885			327,252			328,426			330,344			(1	)	%	(3	)	%
Key Ratios & Other
Return on average assets (annualized) (c) (j)	1.03		%	0.99		%	2.72		%	0.86		%	0.95		%
Return on average common equity (“ROCE”) (annualized) (c) (j)	9.09		%	8.81		%	25.41		%	7.86		%	8.79		%
Return on average tangible common equity (“ROTCE”) (annualized) (c) (j) (k)	14.17		%	13.80		%	40.51		%	12.63		%	14.06		%
Fee income to total revenue (j)	32.38		%	26.72		%	30.81		%	29.08		%	31.10		%
Efficiency ratio (j)	67.99		%	68.30		%	66.55		%	75.90		%	71.67		%
Average full time equivalent employees	5,524			5,563			5,623			5,873			5,835

NM - Not meaningful

* Amount is less than one percent.

(a) 3Q18 includes a $3.8 million gain from the reversal of a previous valuation adjustment due to sales of TRUPS loans.

(b) 4Q18 includes an $8.7 million unfavorable adjustment related to the return of excess fees received on Capital Bank debit card transactions.

(c) 3Q18 includes a pre-tax gain of $212.9 million from the sale of Visa Class B Shares which impacts certain performance measures in 3Q18.

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

(e) 1Q19 includes $6.5 million of severance-related costs associated with efficiency initiatives. 1Q19 and 4Q18 include $6.2 million and $(7.1) million, respectively, of deferred compensation expense.

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

(g) 1Q19 includes $4.3 million related to efficiency initiatives.

(h) 4Q18 decrease due to the end of the FDIC assessment surcharge.

(i) 3Q18 reflects the tax effect on the gain on the sale of Visa Class B Shares.

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

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

6

FHN OTHER INCOME AND OTHER EXPENSE

Quarterly, Unaudited

														1Q19 Changes vs.
(Thousands)	1Q19			4Q18			3Q18			2Q18		1Q18		4Q18			1Q18
Other Income
ATM and interchange fees	$	3,241		$	3,411		$	3,263		$	3,413	$	3,267	(5	)	%	(1	)	%
Dividend income	2,313			2,425			2,757			3,124		2,249		(5	)	%	3		%
Electronic banking fees	1,271			1,393			1,309			1,228		1,204		(9	)	%	6		%
Letter of credit fees	1,368			1,447			1,307			1,295		1,249		(5	)	%	10		%
Mortgage banking	1,886			3,077			2,533			2,431		2,546		(39	)	%	(26	)	%
Deferred compensation (a)	5,474			(6,124		)	1,458			991		451		NM			NM
Insurance commissions	624			467			396			476		757		34		%	(18	)	%
Other service charges	3,869			3,513			3,758			3,728		4,123		10		%	(6	)	%
Gain/(loss) on extinguishment of debt	(1		)	(14		)	(1		)	—		—		93		%	NM
Other (b)	5,523			3,468			5,875			2,748		7,397		59		%	(25	)	%
Total	$	25,568		$	13,063		$	22,655		$	19,434	$	23,243	96		%	10		%
Other Expense
Litigation and regulatory matters (c)	$	13		$	35		$	(1,541	)	$	16	$	2,134	(63	)	%	(99	)	%
Tax credit investments	675			1,126			1,370			1,079		1,137		(40	)	%	(41	)	%
Travel and entertainment	2,712			4,340			3,988			5,131		2,983		(38	)	%	(9	)	%
Employee training and dues	1,457			1,908			1,682			1,849		1,779		(24	)	%	(18	)	%
Customer relations	1,599			1,834			1,328			1,358		1,063		(13	)	%	50		%
Miscellaneous loan costs	1,027			1,012			543			1,035		1,142		1		%	(10	)	%
Supplies	1,804			1,459			1,635			1,987		1,836		24		%	(2	)	%
OREO	(366		)	456			1,256			810		108		NM			NM
Other insurance and taxes	2,694			1,506			2,761			2,752		2,665		79		%	1		%
Non-service components of net periodic pension and post retirement cost (d)	432			1,632			1,585			1,530		504		(74	)	%	(14	)	%
Other (e)	7,739			8,696			11,094			33,452		19,981		(11	)	%	(61	)	%
Total	$	19,786		$	24,004		$	25,701		$	50,999	$	35,332	(18	)	%	(44	)	%

NM - Not meaningful

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

(b) 4Q18 includes a $1.8 million negative valuation adjustment on HFS consumer loans included in the Non-Strategic segment; 3Q18 and 1Q18 include $.8 million and $3.3 million, respectively, of gains on the sales of buildings.

(c) 3Q18 includes a $1.6 million expense reversal related to a recovery of prior litigation losses within the Regional Banking segment.

(d) 1Q18 includes a $1.0 million favorable adjustment related to benefits received.

(e) 2Q18 includes $4.1 million of valuation adjustments associated with derivatives related to prior sales of Visa Class B shares.

7

FHN CONSOLIDATED PERIOD-END BALANCE SHEET

Quarterly, Unaudited 

																1Q19 Changes vs.
(Thousands)	1Q19			4Q18			3Q18			2Q18			1Q18			4Q18			1Q18
Assets:
Investment securities	$	4,626,322		$	4,636,470		$	4,618,383		$	4,734,411		$	4,836,155		*			(4	)	%
Loans held-for-sale (a)	594,662			679,149			725,651			692,659			770,412			(12	)	%	(23	)	%
Loans, net of unearned income	27,990,048			27,535,532			27,350,214			27,701,740			27,249,793			2		%	3		%
Federal funds sold	167,602			237,591			113,722			91,303			62,541			(29	)	%	NM
Securities purchased under agreements to resell	474,679			386,443			687,437			782,765			910,670			23		%	(48	)	%
Interest-bearing cash (b)	1,013,254			1,277,611			531,681			750,634			309,351			(21	)	%	NM
Trading securities	1,681,727			1,448,168			1,930,991			1,649,470			1,759,430			16		%	(4	)	%
Total earning assets	36,548,294			36,200,964			35,958,079			36,402,982			35,898,352			1		%	2		%
Cash and due from banks	570,589			781,291			642,051			602,952			459,820			(27	)	%	24		%
Fixed income receivables (c)	46,782			38,861			177,802			68,148			94,036			20		%	(50	)	%
Goodwill	1,432,788			1,432,787			1,409,822			1,409,276			1,398,501			*			2		%
Other intangible assets, net	148,818			155,034			161,495			167,955			174,415			(4	)	%	(15	)	%
Premises and equipment, net	484,494			494,041			506,453			525,175			531,981			(2	)	%	(9	)	%
Other real estate owned ("OREO")	23,396			25,290			28,628			29,712			35,715			(7	)	%	(34	)	%
Allowance for loan losses	(184,911		)	(180,424		)	(185,959		)	(185,462		)	(187,194		)	2		%	(1	)	%
Derivative assets	118,128			81,475			54,476			122,056			114,348			45		%	3		%
Other assets (d)	1,910,625			1,802,939			1,883,077			1,934,001			1,943,221			6		%	(2	)	%
Total assets	$	41,099,003		$	40,832,258		$	40,635,924		$	41,076,795		$	40,463,195		1		%	2		%
Liabilities and Equity:
Deposits:
Consumer interest	$	13,707,310		$	13,327,104		$	12,800,892		$	12,780,195		$	12,674,251		3		%	8		%
Commercial interest	6,729,999			6,172,159			5,735,486			5,547,510			5,816,992			9		%	16		%
Market-indexed (e)	4,062,531			5,042,412			4,445,826			4,412,272			4,346,862			(19	)	%	(7	)	%
Total interest-bearing deposits	24,499,840			24,541,675			22,982,204			22,739,977			22,838,105			*			7		%
Noninterest-bearing deposits	7,963,048			8,141,317			8,025,881			8,237,890			7,980,846			(2	)	%	*
Total deposits	32,462,888			32,682,992			31,008,085			30,977,867			30,818,951			(1	)	%	5		%
Federal funds purchased	339,360			256,567			437,474			351,655			392,714			32		%	(14	)	%
Securities sold under agreements to repurchase	745,788			762,592			678,510			713,152			672,154			(2	)	%	11		%
Trading liabilities	429,669			335,380			739,694			743,721			827,362			28		%	(48	)	%
Other short-term borrowings (f)	140,832			114,764			1,069,912			1,836,852			1,332,141			23		%	(89	)	%
Term borrowings (g)	1,177,926			1,170,963			1,200,134			1,227,281			1,214,967			1		%	(3	)	%
Fixed income payables (c)	100,290			9,572			36,939			14,739			6,167			NM			NM
Derivative liabilities	107,123			133,713			170,324			135,349			121,394			(20	)	%	(12	)	%
Other liabilities (d)	748,606			580,335			552,921			526,430			504,817			29		%	48		%
Total liabilities	36,252,482			36,046,878			35,893,993			36,527,046			35,890,667			1		%	1		%
Equity:
Common stock	197,101			199,108			202,464			203,127			204,496			(1	)	%	(4	)	%
Capital surplus	2,983,948			3,029,425			3,101,102			3,113,612			3,155,407			(2	)	%	(5	)	%
Undivided profits	1,595,568			1,542,408			1,484,959			1,254,069			1,211,655			3		%	32		%
Accumulated other comprehensive loss, net	(321,151		)	(376,616		)	(437,649		)	(412,114		)	(390,085		)	(15	)	%	(18	)	%
Preferred stock	95,624			95,624			95,624			95,624			95,624			*			*
Noncontrolling interest (h)	295,431			295,431			295,431			295,431			295,431			*			*
Total equity	4,846,521			4,785,380			4,741,931			4,549,749			4,572,528			1		%	6		%
Total liabilities and equity	$	41,099,003		$	40,832,258		$	40,635,924		$	41,076,795		$	40,463,195		1		%	2		%

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

NM - Not meaningful

*Amount is less than one percent.

(a) 1Q19 includes $495.5 million of SBA and USDA loans, $75.0 million of mortgage loans, and $24.2 million of other consumer loans; 2Q18 decrease driven by the sales of approximately $120 million UPB of loans.

(b) Includes excess balances held at Fed.

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

(d) 1Q19 increase largely driven by the adoption of ASU 2016-02, "Leases" which resulted in approximately $180 million of lease assets and approximately $200 million of lease liabilities being added to the balance sheet.

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

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

(g) 4Q18 and 3Q18 decreases include the retirement of $35.1 million and $10.3 million, respectively, of TRUPS debt.

(h) Consists of preferred stock of subsidiaries.

8

FHN CONSOLIDATED AVERAGE BALANCE SHEET

Quarterly, Unaudited 

																1Q19 Changes vs.
(Thousands)	1Q19			4Q18			3Q18			2Q18			1Q18			4Q18			1Q18
Assets:
Earning assets:
Loans, net of unearned income:
Commercial, financial, and industrial (C&I)	$	16,428,088		$	15,952,608		$	16,038,920		$	15,958,162		$	15,535,621		3		%	6		%
Commercial real estate	3,959,592			4,170,186			4,226,580			4,198,275			4,230,217			(5	)	%	(6	)	%
Consumer real estate	6,194,147			6,274,799			6,199,910			6,217,618			6,302,365			(1	)	%	(2	)	%
Permanent mortgage	216,037			228,184			348,922			369,144			389,732			(5	)	%	(45	)	%
Credit card and other	515,436			528,866			532,890			555,588			594,130			(3	)	%	(13	)	%
Total loans, net of unearned income (a)	27,313,300			27,154,643			27,347,222			27,298,787			27,052,065			1		%	1		%
Loans held-for-sale (b)	670,401			714,388			727,508			727,212			726,978			(6	)	%	(8	)	%
Investment securities:
U.S. treasuries	99			98			98			98			98			1		%	1		%
U.S. government agencies	4,494,814			4,489,625			4,594,639			4,705,893			4,792,709			*			(6	)	%
States and municipalities	33,400			27,573			14,332			1,621			51			21		%	NM
Corporate bonds	65,194			65,033			65,505			65,719			65,634			*			(1	)	%
Other	10,249			11,421			7,307			4,114			5,153			(10	)	%	99		%
Total investment securities	4,603,756			4,593,750			4,681,881			4,777,445			4,863,645			*			(5	)	%
Trading securities	1,443,969			1,634,726			1,501,857			1,568,675			1,711,776			(12	)	%	(16	)	%
Other earning assets:
Federal funds sold	113,043			43,752			43,396			35,165			27,797			NM			NM
Securities purchased under agreements to resell	428,687			609,891			764,743			728,785			881,429			(30	)	%	(51	)	%
Interest-bearing cash (c)	1,717,696			1,073,540			486,280			447,461			482,060			60		%	NM
Total other earning assets	2,259,426			1,727,183			1,294,419			1,211,411			1,391,286			31		%	62		%
Total earning assets	36,290,852			35,824,690			35,552,887			35,583,530			35,745,750			1		%	2		%
Allowance for loan losses	(182,332		)	(186,978		)	(186,204		)	(187,253		)	(190,420		)	(2	)	%	(4	)	%
Cash and due from banks	610,470			615,199			597,578			564,554			563,555			(1	)	%	8		%
Fixed income receivables	55,393			56,519			54,176			51,346			61,757			(2	)	%	(10	)	%
Premises and equipment, net	485,462			499,867			518,017			532,259			537,359			(3	)	%	(10	)	%
Derivative assets	55,288			38,449			31,322			99,212			79,292			44		%	(30	)	%
Other assets (d)	3,568,059			3,454,782			3,509,257			3,530,064			3,553,431			3		%	*
Total assets	$	40,883,192		$	40,302,528		$	40,077,033		$	40,173,712		$	40,350,724		1		%	1		%
Liabilities and equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Consumer interest	$	13,390,692		$	12,965,734		$	12,663,181		$	12,581,023		$	12,586,843		3		%	6		%
Commercial interest	6,577,476			5,900,136			5,580,371			5,618,245			5,540,090			11		%	19		%
Market-indexed (e)	4,734,295			4,947,192			4,486,335			4,488,503			4,238,128			(4	)	%	12		%
Total interest-bearing deposits	24,702,463			23,813,062			22,729,887			22,687,771			22,365,061			4		%	10		%
Federal funds purchased	370,868			334,036			454,670			368,321			464,300			11		%	(20	)	%
Securities sold under agreements to repurchase	688,765			710,898			720,716			667,689			756,487			(3	)	%	(9	)	%
Trading liabilities	375,169			543,696			702,026			666,092			822,815			(31	)	%	(54	)	%
Other short-term borrowings (f)	114,474			244,413			861,865			1,399,580			1,698,490			(53	)	%	(93	)	%
Term borrowings	1,172,618			1,172,405			1,235,166			1,220,494			1,219,916			*			(4	)	%
Total interest-bearing liabilities	27,424,357			26,818,510			26,704,330			27,009,947			27,327,069			2		%	*
Noninterest-bearing deposits	7,795,015			8,034,692			8,117,349			8,003,901			7,843,239			(3	)	%	(1	)	%
Fixed income payables	21,978			19,858			17,582			15,453			27,913			11		%	(21	)	%
Derivative liabilities	94,943			147,075			114,211			103,130			72,157			(35	)	%	32		%
Other liabilities (d)	737,664			551,695			512,259			488,735			506,430			34		%	46		%
Total liabilities	36,073,957			35,571,830			35,465,731			35,621,166			35,776,808			1		%	1		%
Equity:
Common stock	198,460			201,006			202,852			203,381			204,332			(1	)	%	(3	)	%
Capital surplus	3,015,017			3,068,536			3,108,721			3,121,578			3,151,931			(2	)	%	(4	)	%
Undivided profits	1,572,177			1,510,503			1,323,826			1,240,809			1,192,462			4		%	32		%
Accumulated other comprehensive loss, net	(367,474		)	(440,402		)	(415,152		)	(404,277		)	(365,864		)	(17	)	%	*
Preferred stock	95,624			95,624			95,624			95,624			95,624			*			*
Noncontrolling interest (g)	295,431			295,431			295,431			295,431			295,431			*			*
Total equity	4,809,235			4,730,698			4,611,302			4,552,546			4,573,916			2		%	5		%
Total liabilities and equity	$	40,883,192		$	40,302,528		$	40,077,033		$	40,173,712		$	40,350,724		1		%	1		%

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

NM - Not meaningful

*Amount is less than one percent.

(a) Includes loans on nonaccrual status.

(b) 1Q19 includes $572.2 million of SBA and USDA loans, $73.6 million of mortgage loans, and $24.5 million of other consumer loans.

(c) Includes excess balances held at Fed.

(d) 1Q19 increase largely driven by the adoption of ASU 2016-02, "Leases" which resulted in approximately $180 million of lease assets and approximately $200 million of lease liabilities being added to the balance sheet.

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

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

(g) Consists of preferred stock of subsidiaries.

9

FHN CONSOLIDATED NET INTEREST INCOME (a)

Quarterly, Unaudited 

																1Q19 Changes vs.
(Thousands)	1Q19			4Q18			3Q18			2Q18			1Q18			4Q18			1Q18
Interest Income:
Loans, net of unearned income (b)	$	334,167		$	333,935		$	333,088		$	326,069		$	301,411		*			11		%
Loans held-for-sale (c)	9,877			11,759			9,977			11,228			12,144			(16	)	%	(19	)	%
Investment securities:
U.S. government agencies	30,107			30,744			31,106			31,692			31,870			(2	)	%	(6	)	%
States and municipalities	362			300			129			13			—			21		%	NM
Corporate bonds	712			716			714			720			745			(1	)	%	(4	)	%
Other	895			955			592			342			363			(6	)	%	NM
Total investment securities	32,076			32,715			32,541			32,767			32,978			(2	)	%	(3	)	%
Trading securities	13,712			15,533			14,305			14,967			14,537			(12	)	%	(6	)	%
Other earning assets:
Federal funds sold	733			304			273			207			145			NM			NM
Securities purchased under agreements to resell	2,336			3,197			3,510			2,944			2,503			(27	)	%	(7	)	%
Interest-bearing cash	10,209			5,884			2,257			1,950			1,684			74		%	NM
Total other earning assets	13,278			9,385			6,040			5,101			4,332			41		%	NM
Interest income	$	403,110		$	403,327		$	395,951		$	390,132		$	365,402		*			10		%
Interest Expense:
Interest-bearing deposits:
Consumer interest	$	24,641		$	21,607		$	17,968		$	14,153		$	7,534		14		%	NM
Commercial interest	28,153			22,706			18,302			14,737			12,127			24		%	NM
Market-indexed (d)	29,416			29,366			22,820			19,859			15,372			*			91		%
Total interest-bearing deposits	82,210			73,679			59,090			48,749			35,033			12		%	NM
Federal funds purchased	2,287			1,933			2,355			1,640			1,738			18		%	32		%
Securities sold under agreements to repurchase	3,496			3,329			2,780			1,997			1,901			5		%	84		%
Trading liabilities	2,816			4,320			5,125			4,790			5,124			(35	)	%	(45	)	%
Other short-term borrowings	961			1,571			4,627			6,473			6,403			(39	)	%	(85	)	%
Term borrowings	14,337			13,842			13,992			13,230			11,983			4		%	20		%
Interest expense	106,107			98,674			87,969			76,879			62,182			8		%	71		%
Net interest income - tax equivalent basis	297,003			304,653			307,982			313,253			303,220			(3	)	%	(2	)	%
Fully taxable equivalent adjustment	(2,495		)	(2,141		)	(2,282		)	(2,321		)	(2,047		)	(17	)	%	(22	)	%
Net interest income	$	294,508		$	302,512		$	305,700		$	310,932		$	301,173		(3	)	%	(2	)	%

NM - Not meaningful

*Amount is less than one percent.

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

(b) Includes interest on loans in nonaccrual status.

(c) 3Q18 decrease largely driven by the sale of approximately $120 million UPB of loans in 2Q18.

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

10

FHN CONSOLIDATED AVERAGE BALANCE SHEET: YIELDS AND RATES

Quarterly, Unaudited 

	1Q19		4Q18		3Q18		2Q18		1Q18
Assets:
Earning assets (a)
Loans, net of unearned income (b)
Commercial loans	5.08	%	5.00	%	4.95	%	4.88	%	4.53	%
Consumer loans	4.59		4.54		4.51		4.52		4.48
Total loans, net of unearned income (c)	4.96		4.88		4.84		4.79		4.51
Loans held-for-sale	5.89		6.58		5.49		6.18		6.68
Investment securities:
U.S. government agencies	2.68		2.74		2.71		2.69		2.66
States and municipalities	4.33		4.36		3.60		3.12		3.37
Corporate bonds	4.37		4.40		4.36		4.38		4.54
Other	34.56		33.16		31.97		32.48		27.65
Total investment securities	2.79		2.85		2.78		2.74		2.71
Trading securities	3.80		3.80		3.81		3.82		3.40
Other earning assets:
Federal funds sold	2.63		2.76		2.50		2.36		2.11
Securities purchased under agreements to resell	2.21		2.08		1.82		1.62		1.15
Interest-bearing cash	2.41		2.17		1.84		1.75		1.42
Total other earning assets	2.38		2.16		1.85		1.69		1.26
Interest income/total earning assets	4.49	%	4.47	%	4.43	%	4.39	%	4.13	%
Liabilities:
Interest-bearing liabilities:
Interest-bearing deposits:
Consumer interest	0.75	%	0.66	%	0.56	%	0.45	%	0.24	%
Commercial interest	1.74		1.53		1.30		1.05		0.89
Market-indexed (d)	2.52		2.35		2.02		1.77		1.47
Total interest-bearing deposits	1.35		1.23		1.03		0.86		0.64
Federal funds purchased	2.50		2.30		2.05		1.79		1.52
Securities sold under agreements to repurchase	2.06		1.86		1.53		1.20		1.02
Trading liabilities	3.04		3.15		2.90		2.88		2.53
Other short-term borrowings	3.40		2.55		2.13		1.86		1.53
Term borrowings (e)	4.89		4.72		4.53		4.34		3.93
Interest expense/total interest-bearing liabilities	1.57		1.46		1.31		1.14		0.92
Net interest spread	2.92	%	3.01	%	3.12	%	3.25	%	3.21	%
Effect of interest-free sources used to fund earning assets	0.39		0.37		0.32		0.28		0.22
Net interest margin	3.31	%	3.38	%	3.44	%	3.53	%	3.43	%
Total loan yield	4.96	%	4.88	%	4.84	%	4.79	%	4.51	%
Total deposit cost	1.03	%	0.92	%	0.76	%	0.64	%	0.47	%

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

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

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

(c) Includes loans on nonaccrual status.

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

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

11

FHN CAPITAL HIGHLIGHTS

Quarterly, Unaudited 

																1Q19 Changes vs.
(Dollars and shares in thousands)	1Q19			4Q18			3Q18			2Q18			1Q18			4Q18			1Q18
Common equity tier 1 capital (a) (b) (c)	$	3,239,249		$	3,223,702		$	3,252,825		$	3,002,958		$	2,991,223		*			8		%
Tier 1 capital (a) (b) (c)	3,583,000			3,565,373			3,589,565			3,338,179			3,324,349			*			8		%
Total capital (a) (c)	3,963,175			3,940,117			3,973,141			3,760,651			3,746,007			1		%	6		%
Risk-weighted assets (“RWA”) (a) (b)	33,518,750			33,002,595			33,041,617			33,437,145			33,293,821			2		%	1		%
Average assets for leverage (a) (b)	39,717,386			39,221,755			38,962,431			39,003,215			39,127,510			1		%	2		%
Common equity tier 1 ratio (a) (b) (c)	9.66		%	9.77		%	9.84		%	8.98		%	8.98		%
Tier 1 ratio (a) (b) (c)	10.69		%	10.80		%	10.86		%	9.98		%	9.98		%
Total capital ratio (a) (c)	11.82		%	11.94		%	12.02		%	11.25		%	11.25		%
Leverage ratio (a) (b)	9.02		%	9.09		%	9.21		%	8.56		%	8.50		%
Total equity to total assets (c)	11.79		%	11.72		%	11.67		%	11.08		%	11.30		%
Tangible common equity/tangible assets (“TCE/TA”) (c) (d)	7.27		%	7.15		%	7.12		%	6.54		%	6.71		%
Period-end shares outstanding (e)	315,361			318,573			323,943			325,003			327,194			(1	)	%	(4	)	%
Cash dividends declared per common share	$	0.14		$	0.12		$	0.12		$	0.12		$	0.12		17		%	17		%
Book value per common share (c)	$	14.13		$	13.79		$	13.43		$	12.80		$	12.78
Tangible book value per common share (c) (d)	$	9.11		$	8.81		$	8.58		$	7.94		$	7.97
Market capitalization (millions)	$	4,408.7		$	4,192.4		$	5,591.3		$	5,798.1		$	6,161.1

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

* Amount is less than one percent.

(a) Current quarter is an estimate.

(b) See Glossary of Terms for definition.

(c) 3Q18 includes the effect of the pre-tax gain of $212.9 million from the sale of Visa Class B Shares.

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

(e) 1Q19 and 4Q18 decreases largely attributable to shares repurchased under share repurchase programs.

12

FHN BUSINESS SEGMENT HIGHLIGHTS

Quarterly, Unaudited 

																1Q19 Changes vs.
(Thousands)	1Q19			4Q18			3Q18			2Q18			1Q18			4Q18			1Q18
Regional Banking
Net interest income	$	287,157		$	299,640		$	302,472		$	306,990		$	293,194		(4	)	%	(2	)	%
Noninterest income (a)	72,117			69,208			79,850			80,274			79,963			4		%	(10	)	%
Total revenues	359,274			368,848			382,322			387,264			373,157			(3	)	%	(4	)	%
Provision for loan losses	13,958			7,850			8,045			4,925			4,458			78		%	NM
Noninterest expense	199,959			206,372			207,807			209,492			201,749			(3	)	%	(1	)	%
Income before income taxes	145,357			154,626			166,470			172,847			166,950			(6	)	%	(13	)	%
Provision for income taxes	33,693			36,281			39,051			40,621			39,340			(7	)	%	(14	)	%
Net income	$	111,664		$	118,345		$	127,419		$	132,226		$	127,610		(6	)	%	(12	)	%
Fixed Income
Net interest income	$	7,322		$	9,002		$	9,044		$	9,183		$	8,475		(19	)	%	(14	)	%
Noninterest income	53,807			39,678			41,124			38,363			45,605			36		%	18		%
Total revenues	61,129			48,680			50,168			47,546			54,080			26		%	13		%
Noninterest expense	51,227			46,947			47,028			47,522			49,931			9		%	3		%
Income before income taxes	9,902			1,733			3,140			24			4,149			NM			NM
Provision/(benefit) for income taxes	2,283			299			601			(219		)	896			NM			NM
Net income	$	7,619		$	1,434		$	2,539		$	243		$	3,253		NM			NM
Corporate
Net interest income/(expense)	$	(7,853	)	$	(15,334	)	$	(15,440	)	$	(17,161	)	$	(16,184	)	49		%	51		%
Noninterest income (b)	13,352			(1,411		)	222,620			8,738			9,316			NM			43		%
Total revenues	5,499			(16,745		)	207,180			(8,423		)	(6,868		)	NM			NM
Noninterest expense (c) (d)	40,351			23,127			33,537			67,835			53,329			74		%	(24	)	%
Income/(loss) before income taxes	(34,852		)	(39,872		)	173,643			(76,258		)	(60,197		)	13		%	42		%
Provision/ (benefit) for income taxes (e)	(11,403		)	(14,599		)	40,470			(22,948		)	(13,771		)	22		%	17		%
Net income/(loss)	$	(23,449	)	$	(25,273	)	$	133,173		$	(53,310	)	$	(46,426	)	7		%	49		%
Non-Strategic
Net interest income	$	7,882		$	9,204		$	9,624		$	11,920		$	15,688		(14	)	%	(50	)	%
Noninterest income (f)	1,769			2,799			5,378			150			1,133			(37	)	%	56		%
Total revenues	9,651			12,003			15,002			12,070			16,821			(20	)	%	(43	)	%
Provision/(provision credit) for loan losses	(4,958		)	(1,850		)	(6,045		)	(4,925		)	(5,458		)	NM			9		%
Noninterest expense	4,553			5,486			5,659			7,919			8,256			(17	)	%	(45	)	%
Income before income taxes	10,056			8,367			15,388			9,076			14,023			20		%	(28	)	%
Provision for income taxes	2,485			2,068			3,803			2,243			3,466			20		%	(28	)	%
Net income	$	7,571		$	6,299		$	11,585		$	6,833		$	10,557		20		%	(28	)	%
Total Consolidated
Net interest income	$	294,508		$	302,512		$	305,700		$	310,932		$	301,173		(3	)	%	(2	)	%
Noninterest income	141,045			110,274			348,972			127,525			136,017			28		%	4		%
Total revenues	435,553			412,786			654,672			438,457			437,190			6		%	*
Provision/(provision credit) for loan losses	9,000			6,000			2,000			—			(1,000		)	50		%	NM
Noninterest expense	296,090			281,932			294,031			332,768			313,265			5		%	(5	)	%
Income before income taxes	130,463			124,854			358,641			105,689			124,925			4		%	4		%
Provision for income taxes	27,058			24,049			83,925			19,697			29,931			13		%	(10	)	%
Net income	$	103,405		$	100,805		$	274,716		$	85,992		$	94,994		3		%	9		%

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

NM - Not meaningful

* Amount is less than one percent.

(a) 4Q18 includes an $8.7 million unfavorable adjustment related to the return of excess fees received on Capital Bank debit card transactions.

(b) 1Q19 includes higher deferred compensation income driven by equity market valuations; 4Q18 includes lower deferred compensation income driven by equity market valuations and a $1.8 million negative valuation adjustment on HFS consumer loans included in the Non-Strategic segment; 3Q18 includes a pre-tax gain of $212.9 million from the sale of Visa Class B Shares.

(c) Quarterly balances include acquisition- and integration-related expenses primarily associated with the CBF acquisition.

(d) 1Q19 includes $12.2 million of restructuring costs associated with efficiency initiatives.

(e) 3Q18 reflects the tax effect on the gain on the sale of Visa Class B Shares.

(f) 3Q18 includes a $3.8 million gain from the reversal of a previous valuation adjustment due to sales of TRUPS loans.

13

FHN REGIONAL BANKING

Quarterly, Unaudited 

												1Q19 Changes vs.
	1Q19		4Q18			3Q18		2Q18		1Q18		4Q18			1Q18
Income Statement (thousands)
Net interest income	$	287,157	$	299,640		$	302,472	$	306,990	$	293,194	(4	)	%	(2	)	%
Provision for loan losses	13,958		7,850			8,045		4,925		4,458		78		%	NM
Noninterest income:
NSF / Overdraft fees (a)	11,579		14,129			13,584		12,663		12,255		(18	)	%	(6	)	%
Cash management fees	8,857		9,073			9,238		9,193		9,269		(2	)	%	(4	)	%
Debit card income (b)	5,372		(3,142		)	7,811		8,395		8,409		NM			(36	)	%
Other	4,197		3,555			3,358		4,261		4,789		18		%	(12	)	%
Total deposit transactions and cash management	30,005		23,615			33,991		34,512		34,722		27		%	(14	)	%
Brokerage, management fees and commissions	12,630		13,377			14,199		13,740		13,483		(6	)	%	(6	)	%
Trust services and investment management	7,056		6,961			7,453		8,147		7,292		1		%	(3	)	%
Bankcard income	6,102		6,927			7,000		6,642		6,279		(12	)	%	(3	)	%
Other service charges	3,713		3,258			3,449		3,559		4,586		14		%	(19	)	%
Miscellaneous revenue	12,611		15,070			13,758		13,674		13,601		(16	)	%	(7	)	%
Total noninterest income	72,117		69,208			79,850		80,274		79,963		4		%	(10	)	%
Noninterest expense:
Employee compensation, incentives, and benefits	82,351		82,856			81,674		81,845		81,208		(1	)	%	1		%
Other (c)	117,608		123,516			126,133		127,647		120,541		(5	)	%	(2	)	%
Total noninterest expense	199,959		206,372			207,807		209,492		201,749		(3	)	%	(1	)	%
Income before income taxes	$	145,357	$	154,626		$	166,470	$	172,847	$	166,950	(6	)	%	(13	)	%
PPNR (d)	159,315		162,476			174,515		177,772		171,408		(2	)	%	(7	)	%
Balance Sheet (millions)
Average loans	$	26,189	$	25,970		$	26,067	$	25,925	$	25,590	1		%	2		%
Average other earning assets	39		41			59		57		48		(5	)	%	(19	)	%
Total average earning assets	26,228		26,011			26,126		25,982		25,638		1		%	2		%
Total average deposits	29,614		28,348			27,594		27,427		27,120		4		%	9		%
Total period-end deposits	30,376		29,370			27,758		27,861		27,653		3		%	10		%
Total period-end assets	29,624		29,205			28,859		29,067		28,386		1		%	4		%
Key Statistics
Return on average assets (quarters are annualized) (e)	1.57%		1.64%			1.76%		1.86%		1.84%
Return on allocated equity (e) (f)	15.33%		15.84%			16.73%		17.31%		16.92%
Fee income to total revenue (e)	20.07%		18.76%			20.89%		20.73%		21.43%
Efficiency ratio (e)	55.66%		55.95%			54.35%		54.10%		54.12%
Net interest margin (g)	4.47%		4.60%			4.63%		4.77%		4.67%
Net interest spread	3.98%		4.04%			4.09%		4.15%		4.03%
Loan average yield	4.86%		4.78%			4.70%		4.65%		4.39%
Deposit average rate	0.88%		0.74%			0.61%		0.50%		0.36%
Regional banking net charge-offs/(recoveries)	$	5,540	$	12,597		$	3,693	$	4,325	$	2,696	(56	)	%	NM
Financial center locations (h)	292		292			292		292		345		*			(15	)	%

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

NM - Not meaningful

* Amount is less than one percent

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

(b) 4Q18 includes an $8.7 million unfavorable adjustment related to the return of excess fees received on Capital Bank debit card transactions.

(c) 3Q18 includes a $1.6 million expense reversal related to a recovery of prior litigation losses.

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

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

(f) Segment equity is allocated based on an internal allocation methodology.

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

(h) 2Q18 decrease driven by branch consolidation and integration efforts.

14

FHN FIXED INCOME

Quarterly, Unaudited

																1Q19 Changes vs.
	1Q19			4Q18			3Q18			2Q18			1Q18			4Q18			1Q18
Income Statement (thousands)
Net interest income	$	7,322		$	9,002		$	9,044		$	9,183		$	8,475		(19	)	%	(14	)	%
Noninterest income:
Fixed income product revenue	44,472			30,028			34,268			29,940			38,047			48		%	17		%
Other	9,335			9,650			6,856			8,423			7,558			(3	)	%	24		%
Total noninterest income	53,807			39,678			41,124			38,363			45,605			36		%	18		%
Noninterest expense	51,227			46,947			47,028			47,522			49,931			9		%	3		%
Income before income taxes	$	9,902		$	1,733		$	3,140		$	24		$	4,149		NM			NM
Fixed income product average daily revenue	$	729		$	492		$	544		$	468		$	624		48		%	17		%
Balance Sheet (millions)
Average trading inventory	$	1,443		$	1,633		$	1,500		$	1,566		$	1,710		(12	)	%	(16	)	%
Average loans held-for-sale	571			608			617			539			487			(6	)	%	17		%
Average other earning assets	491			675			826			797			933			(27	)	%	(47	)	%
Total average earning assets	2,505			2,916			2,943			2,902			3,130			(14	)	%	(20	)	%
Total period-end assets	3,095			2,791			3,744			3,463			3,653			11		%	(15	)	%
Key Statistics
Return on average assets (a)	1.08		%	0.18		%	0.31		%	0.03		%	0.38		%
Return on allocated equity (a) (b)	15.49		%	2.75		%	4.79		%	0.46		%	6.11		%
Efficiency ratio (a)	83.80		%	96.44		%	93.74		%	99.95		%	92.33		%
Net interest margin (c)	1.19		%	1.25		%	1.26		%	1.30		%	1.09		%

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

NM - Not meaningful

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

(b) Segment equity is allocated based on an internal allocation methodology.

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

FHN CORPORATE

Quarterly, Unaudited

																1Q19 Changes vs.
	1Q19			4Q18			3Q18			2Q18			1Q18			4Q18		1Q18
Income Statement (thousands)
Net interest income/(expense)	$	(7,853	)	$	(15,334	)	$	(15,440	)	$	(17,161	)	$	(16,184	)	49	%	51		%
Noninterest income excluding securities gains/(losses) (a)	13,321			(1,383		)	9,762			8,706			9,230			NM		44		%
Securities gains/(losses), net (b)	31			(28		)	212,858			32			86			NM		(64	)	%
Noninterest expense (c)	40,351			23,127			33,537			67,835			53,329			74	%	(24	)	%
Income/(loss) before income taxes	$	(34,852	)	$	(39,872	)	$	173,643		$	(76,258	)	$	(60,197	)	13	%	42		%
Average Balance Sheet (millions)
Average investment securities	$	4,594		$	4,582		$	4,675		$	4,773		$	4,859		*		(5	)	%
Total earning assets	$	6,463		$	5,732		$	5,213		$	5,254		$	5,385		13	%	20		%
Deferred Compensation (thousands)
Other Income	$	5,474		$	(6,124	)	$	1,458		$	991		$	451		NM		NM
Employee compensation, incentives, and benefits	$	6,221		$	(6,983	)	$	1,968		$	866		$	854		NM		NM

Estimated effective duration of securities portfolio 3.5 years in 1Q19 compared to 4.1 years in 4Q18

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

NM - Not Meaningful

* Amount is less than one percent.

(a) 1Q19 includes higher deferred compensation income driven by equity market valuations; 4Q18 includes lower deferred compensation income driven by equity market valuations and a $1.8 million negative valuation adjustment on HFS consumer loans included in the Non-Strategic segment; 3Q18 and 1Q18 include $.8 million and $3.3 million, respectively, of gains on the sales of buildings; 4Q18 and 2Q18 include $1.0 million and $2.5 million, respectively, of BOLI policy gains.

(b) 3Q18 includes a pre-tax gain of $212.9 million from the sale of Visa Class B Shares.

(c) Quarterly balances include acquisition- and integration-related expenses primarily associated with the CBF acquisition; 1Q19 includes $12.2 million of restructuring costs associated with efficiency initiatives; 2Q18 includes $4.1 million of valuation adjustments associated with derivatives related to prior sales of Visa Class B shares.

15

FHN NON-STRATEGIC

Quarterly, Unaudited

																1Q19 Changes vs.
	1Q19			4Q18			3Q18			2Q18			1Q18			4Q18			1Q18
Income Statement (thousands)
Net interest income	$	7,882		$	9,204		$	9,624		$	11,920		$	15,688		(14	)	%	(50	)	%
Provision/(provision credit) for loan losses	(4,958		)	(1,850		)	(6,045		)	(4,925		)	(5,458		)	NM			9		%
Noninterest income (a)	1,769			2,799			5,378			150			1,133			(37	)	%	56		%
Noninterest expense	4,553			5,486			5,659			7,919			8,256			(17	)	%	(45	)	%
Income before income taxes	$	10,056		$	8,367		$	15,388		$	9,076		$	14,023		20		%	(28	)	%
Average Balance Sheet (millions)
Loans	$	1,005		$	1,068		$	1,170		$	1,274		$	1,372		(6	)	%	(27	)	%
Other assets	89			95			97			175			212			(6	)	%	(58	)	%
Total assets	1,094			1,163			1,267			1,449			1,584			(6	)	%	(31	)	%
Key Statistics
Return on average assets (b)	2.81		%	2.15		%	3.63		%	1.89		%	2.70		%
Return on allocated equity (b) (c)	34.78		%	26.02		%	36.02		%	19.89		%	32.07		%
Fee income to total revenue (b)	18.33		%	23.32		%	35.85		%	1.24		%	6.74		%
Efficiency ratio (b)	47.18		%	45.71		%	37.72		%	65.61		%	49.08		%
Net interest margin (d)	2.90		%	3.15		%	3.02		%	3.30		%	3.96		%
Net charge-offs/(recoveries)	$	(1,027	)	$	(1,062	)	$	(2,190	)	$	(2,593	)	$	(1,335	)	3		%	23		%

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

NM - Not meaningful

(a) 3Q18 includes a $3.8 million gain from the reversal of a previous valuation adjustment due to sales of TRUPS loans.

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

(c) Segment equity is allocated based on an internal allocation methodology.

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

16

FHN ASSET QUALITY: CONSOLIDATED

Quarterly, Unaudited 

																					1Q19 Changes vs.
(Dollars in thousands)	1Q19				4Q18				3Q18				2Q18				1Q18				4Q18	1Q18
Allowance for Loan Losses Walk-Forward
Beginning reserve	$	180,424			$	185,959			$	185,462			$	187,194			$	189,555			(3)%	(5)%
Provision/(provision credit) for loan losses	9,000				6,000				2,000				—				(1,000			)	NM	NM
Charge-offs	(10,527			)	(17,824			)	(9,482			)	(10,008			)	(8,483			)	41%	(24)%
Recoveries	6,014				6,289				7,979				8,276				7,122				(4)%	(16)%
Ending balance	$	184,911			$	180,424			$	185,959			$	185,462			$	187,194			2%	(1)%
Reserve for unfunded commitments	8,014				7,618				7,581				6,536				4,613				5%	74%
Total allowance for loan losses plus reserve for unfunded commitments	$	192,925			$	188,042			$	193,540			$	191,998			$	191,807			3%	1%
Allowance for Loan Losses
Regional Banking	$	164,495			$	156,077			$	160,824			$	156,473			$	155,873			5%	6%
Non-Strategic	20,416				24,347				25,135				28,989				31,321				(16)%	(35)%
Total allowance for loan losses	$	184,911			$	180,424			$	185,959			$	185,462			$	187,194			2%	(1)%
Nonperforming Assets
Regional Banking
Nonperforming loans	$	115,977			$	79,339			$	76,145			$	50,856			$	57,372			46%	NM
OREO	16,698				18,535				20,571				22,095				27,614				(10)%	(40)%
Total Regional Banking	$	132,675			$	97,874			$	96,716			$	72,951			$	84,986			36%	56%
Non-Strategic
Nonperforming loans	$	63,961			$	66,703			$	68,485			$	72,190			$	72,519			(4)%	(12)%
Nonperforming loans held-for-sale after fair value adjustments	5,219				5,328				5,675				5,769				8,258				(2)%	(37)%
OREO	3,977				3,852				5,155				4,361				4,761				3%	(16)%
Total Non-Strategic	$	73,157			$	75,883			$	79,315			$	82,320			$	85,538			(4)%	(14)%
Corporate
Nonperforming loans	$	1,687			$	1,707			$	1,727			$	1,746			$	2,140			(1)%	(21)%
Total nonperforming assets	$	207,519			$	175,464			$	177,758			$	157,017			$	172,664			18%	20%
Net Charge-Offs
Regional Banking	$	5,540			$	12,597			$	3,693			$	4,325			$	2,696			(56)%	NM
Non-Strategic	(1,027			)	(1,062			)	(2,190			)	(2,593			)	(1,335			)	3%	23%
Total net charge-offs/(recoveries)	$	4,513			$	11,535			$	1,503			$	1,732			$	1,361			(61)%	NM
Consolidated Key Ratios (a)
30+ Delinq. % (b)	0.23		%		0.27		%		0.35		%		0.31		%		0.29		%
NPL % (c)	0.65				0.54				0.54				0.45				0.48
NPA %	0.72				0.62				0.63				0.55				0.60
Net charge-offs % (d)	0.07				0.17				0.02				0.03				0.02
Allowance / loans %	0.66				0.66				0.68				0.67				0.69
Allowance / NPL	1.02		x		1.22		x		1.27		x		1.49		x		1.42		x
Allowance / NPA	0.91		x		1.06		x		1.08		x		1.23		x		1.14		x
Allowance / net charge-offs	10.10		x		3.94		x		31.20		x		26.70		x		33.90		x
Other
Loans past due 90 days or more and still accruing (e)	$	30,896			$	39,992			$	49,352			$	44,467			$	52,700			NM	NM
Guaranteed portion (e)	5,725				7,237				7,772				8,412				9,076
Period-end loans, net of unearned income (millions)	27,990				27,536				27,350				27,702				27,250				2%	3%
30+ delinquencies (thousands)	$	63,693			$	75,164			$	95,092			$	85,139			$	79,352			(15)%	(20)%

NM - Not meaningful

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

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

(c) 3Q18 increase in NPLs as a percentage of total loans was driven by one large credit.

(d) 4Q18 increase in charge-offs as a percentage of total loans was primarily driven by two credits.

(e) Includes loans held-for-sale.

17

FHN ASSET QUALITY: CONSOLIDATED

Quarterly, Unaudited 

																1Q19 Changes vs.
	1Q19			4Q18			3Q18			2Q18			1Q18			4Q18	1Q18
Key Portfolio Details
C&I
Period-end loans ($ millions)	$	17,176		$	16,515		$	16,044		$	16,439		$	15,828		4%	9%
30+ Delinq. % (a)	0.07		%	0.06		%	0.15		%	0.14		%	0.16		%
NPL % (b) (e)	0.44			0.24			0.26			0.12			0.18
Charge-offs % (qtr. annualized) (d)	0.06			0.20			0.01			0.06			0.01
Allowance / loans %	0.60		%	0.60		%	0.63		%	0.59		%	0.63		%
Allowance / net charge-offs	11.26		x	3.06		x	74.66		x	10.73		x	44.48		x
Commercial Real Estate
Period-end loans ($ millions)	$	3,947		$	4,031		$	4,237		$	4,136		$	4,234		(2)%	(7)%
30+ Delinq. % (a) (c)	0.04		%	0.06		%	0.20		%	0.06		%	0.08		%
NPL %	0.07			0.07			0.02			0.03			0.02
Charge-offs % (qtr. annualized)	0.04			0.05			NM			0.01			0.00
Allowance / loans %	0.87		%	0.78		%	0.80		%	0.82		%	0.69		%
Allowance / net charge-offs	22.50			15.45		x	NM			55.04		x	NM
Consumer Real Estate
Period-end loans ($ millions)	$	6,152		$	6,250		$	6,301		$	6,328		$	6,356		(2)%	(3)%
30+ Delinq. % (a)	0.66		%	0.74		%	0.73		%	0.67		%	0.56		%
NPL %	1.34			1.32			1.27			1.25			1.20
Charge-offs % (qtr. annualized)	NM			NM			NM			NM			NM
Allowance / loans %	0.39		%	0.42		%	0.46		%	0.54		%	0.55		%
Allowance / net charge-offs	NM			NM			NM			NM			NM
Permanent Mortgage
Period-end loans ($ millions)	$	209		$	222		$	237		$	250		$	271		(6)%	(23)%
30+ Delinq. % (a)	1.95		%	3.21		%	3.56		%	2.59		%	3.65		%
NPL %	10.01			9.76			9.41			9.76			9.32
Charge-offs % (qtr. annualized)	NM			NM			NM			NM			0.14
Allowance / loans %	4.82		%	4.95		%	4.68		%	4.68		%	4.80		%
Allowance / net charge-offs	NM			NM			NM			NM			33.80		x
Credit Card and Other
Period-end loans ($ millions)	$	506		$	518		$	531		$	549		$	561		(2)%	(10)%
30+ Delinq. % (a)	1.20		%	1.63		%	1.64		%	1.80		%	0.98		%
NPL %	0.09			0.12			0.13			0.07			0.18
Charge-offs % (qtr. annualized)	2.44			3.32			3.32			2.61			2.15
Allowance / loans %	2.50		%	2.46		%	2.21		%	1.63		%	1.73		%
Allowance / net charge-offs	1.01		x	0.73		x	0.66		x	0.62		x	0.76		x

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

NM - Not meaningful

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

(b) 3Q18 increase in NPLs as a percentages of total loans was driven by one large credit.

(c) 3Q18 increase in delinquencies primarily driven by two credits.

(d) 4Q18 increase in charge-offs as a percentage of loans was primarily driven by two credits.

(e) 1Q19 increase in NPLs as a percentages of total loans was primarily driven by three credits.

18

FHN ASSET QUALITY: REGIONAL BANKING

Quarterly, Unaudited 

																1Q19 Changes vs.
	1Q19			4Q18			3Q18			2Q18			1Q18			4Q18	1Q18
Total Regional Banking (a)
Period-end loans ($ millions)	$	26,980		$	26,463		$	26,203		$	26,427		$	25,888		2%	4%
30+ Delinq. % (b)	0.17		%	0.19		%	0.26		%	0.22		%	0.20		%
NPL % (c) (f)	0.43			0.30			0.29			0.19			0.22
Charge-offs % (qtr. annualized) (e)	0.09			0.19			0.06			0.07			0.04
Allowance / loans %	0.61		%	0.59		%	0.61		%	0.59		%	0.60		%
Allowance / net charge-offs	7.32		x	3.12		x	10.98		x	9.02		x	14.25		x
Key Portfolio Details
C&I
Period-end loans ($ millions)	$	16,814		$	16,151		$	15,675		$	16,020		$	15,410		4%	9%
30+ Delinq. % (b)	0.06		%	0.06		%	0.15		%	0.15		%	0.16		%
NPL % (c) (f)	0.43			0.23			0.25			0.10			0.16
Charge-offs % (qtr. annualized) (e)	0.06			0.21			0.01			0.06			0.02
Allowance / loans %	0.61		%	0.60		%	0.63		%	0.60		%	0.64		%
Allowance / net charge-offs	10.98		x	3.01		x	71.90		x	10.57		x	43.61
Commercial Real Estate
Period-end loans ($ millions)	$	3,947		$	4,031		$	4,237		$	4,136		$	4,234		(2)%	(7)%
30+ Delinq. % (b) (d)	0.04		%	0.06		%	0.20		%	0.06		%	0.08		%
NPL %	0.07			0.07			0.02			0.03			0.02
Charge-offs % (qtr. annualized)	0.04			0.05			NM			0.01			—
Allowance / loans %	0.87		%	0.78		%	0.80		%	0.82		%	0.69		%
Allowance / net charge-offs	22.50			15.10			NM			NM			187.01
Consumer Real Estate
Period-end loans ($ millions)	$	5,780		$	5,845		$	5,859		$	5,839		$	5,815		(1)%	(1)%
30+ Delinq. % (b)	0.52		%	0.58		%	0.56		%	0.51		%	0.37		%
NPL %	0.71			0.67			0.61			0.56			0.52
Charge-offs % (qtr. annualized)	0.04			0.07			0.03			NM			NM
Allowance / loans %	0.26		%	0.25		%	0.28		%	0.31		%	0.31		%
Allowance / net charge-offs	6.17			3.38			10.63		x	NM			NM
Credit Card, Permanent Mortgage, and Other (a)
Period-end loans ($ millions)	$	439		$	436		$	432		$	432		$	429		1%	2%
30+ Delinq. % (b)	0.74		%	0.95		%	0.80		%	0.80		%	0.70		%
NPL %	0.08			0.09			0.08			0.11			0.25
Charge-offs % (qtr. annualized)	2.08			2.55			2.98			2.25			2.32
Allowance / loans %	2.87		%	2.90		%	2.64		%	2.08		%	2.28		%
Allowance / net charge-offs	1.38		x	1.13		x	0.90		x	0.93		x	0.96		x
ASSET QUALITY: CORPORATE
Permanent Mortgage
Period-end loans ($ millions)	$	38		$	39		$	42		$	44		$	49		(3)%	(22)%
30+ Delinq. % (b)	4.54		%	4.37		%	4.21		%	3.32		%	5.51		%
NPL %	4.49			4.35			4.12			3.94			4.41
Charge-offs % (qtr. annualized)	NM			NM			NM			NM			NM
Allowance / loans %	NM			NM			NM			NM			NM
Allowance / net charge-offs	NM			NM			NM			NM			NM

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

NM - Not meaningful

(a) In 3Q18, the acquired CBF indirect auto portfolio was retrospectively reclassed through 4Q17 from the Regional Banking segment to the Non-Strategic segment.

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

(c) 3Q18 increase in NPLs as a percentages of total loans was driven by one large credit.

(d) 3Q18 increase in delinquencies primarily driven by two credits.

(e) 4Q18 increase in charge-offs as a percentage of loans was primarily driven by two credits.

(f) 1Q19 increases in NPLs as a percentage of total loans was primarily driven by three credits

19

FHN ASSET QUALITY: NON-STRATEGIC

Quarterly, Unaudited 

																1Q19 Changes vs.
	1Q19			4Q18			3Q18			2Q18			1Q18			4Q18	1Q18
Total Non-Strategic (a)
Period-end loans ($ millions)	$	972		$	1,034		$	1,105		$	1,231		$	1,313		(6)%	(26)%
30+ Delinq. % (b)	1.76		%	2.31		%	2.31		%	1.97		%	1.82		%
NPL %	6.58			6.46			6.20			5.87			5.52
Charge-offs % (qtr. annualized)	NM			NM			NM			NM			NM
Allowance / loans %	2.10		%	2.36		%	2.27		%	2.36		%	2.38		%
Allowance / net charge-offs	NM			NM			NM			NM			NM
Key Portfolio Details
Commercial
Period-end loans ($ millions)	$	362		$	363		$	369		$	419		$	418		*	(13)%
30+ Delinq. % (b)	0.46		%	0.47		%	—		%	—		%	—		%
NPL %	0.78			0.80			0.80			0.71			0.72
Charge-offs % (qtr. annualized)	NM			NM			NM			—			—
Allowance / loans %	0.36		%	0.37		%	0.35		%	0.31		%	0.30		%
Allowance / net charge-offs	NM			NM			NM			NM			NM
Consumer Real Estate
Period-end loans ($ millions)	$	372		$	405		$	442		$	489		$	540		(8)%	(31)%
30+ Delinq. % (b)	2.77		%	3.07		%	3.06		%	2.63		%	2.64		%
NPL %	11.25			10.76			10.09			9.55			8.60
Charge-offs % (qtr. annualized)	NM			NM			NM			NM			NM
Allowance / loans %	2.41		%	2.95		%	2.81		%	3.28		%	3.17		%
Allowance / net charge-offs	NM			NM			NM			NM			NM
Permanent Mortgage
Period-end loans ($ millions)	$	168		$	179		$	191		$	201		$	217		(6)%	(23)%
30+ Delinq. % (b)	1.14		%	2.87		%	3.31		%	2.28		%	3.16		%
NPL %	11.29			10.97			10.60			11.08			10.43
Charge-offs % (qtr. annualized)	NM			NM			NM			NM			0.17
Allowance / loans %	5.96		%	6.10		%	5.76		%	5.77		%	5.93		%
Allowance / net charge-offs	NM			NM			NM			NM			33.55
Other Consumer (a)
Period-end loans ($ millions)	$	70		$	87		$	103		$	122		$	138		(18)%	(49)%
30+ Delinq. % (b)	4.61		%	5.35		%	5.47		%	5.63		%	2.04		%
NPL %	0.56			0.69			0.66			0.19			0.29
Charge-offs % (qtr. annualized)	4.35			6.77			4.47			3.71			1.61
Allowance / loans %	0.20		%	0.15		%	0.37		%	0.05		%	0.05		%
Allowance / net charge-offs	0.04		x	0.02		x	0.08		x	0.01			0.03

NM - Not meaningful

* Amount is less than one percent.

(a) In 3Q18, the acquired CBF indirect auto portfolio was retrospectively reclassed through 4Q17 from the Regional Banking segment to the Non-Strategic segment.

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

20

FHN NON-GAAP TO GAAP RECONCILIATION

Quarterly, Unaudited

(Dollars and shares in thousands, except per share data)	1Q19			4Q18			3Q18			2Q18			1Q18
Tangible Common Equity (Non-GAAP)
(A) Total equity (GAAP)	$	4,846,521		$	4,785,380		$	4,741,931		$	4,549,749		$	4,572,528
Less: Noncontrolling interest (a)	295,431			295,431			295,431			295,431			295,431
Less: Preferred stock (a)	95,624			95,624			95,624			95,624			95,624
(B) Total common equity	$	4,455,466		$	4,394,325		$	4,350,876		$	4,158,694		$	4,181,473
Less: Intangible assets (GAAP) (b)	1,581,606			1,587,821			1,571,317			1,577,231			1,572,916
(C) Tangible common equity (Non-GAAP)	$	2,873,860		$	2,806,504		$	2,779,559		$	2,581,463		$	2,608,557
Tangible Assets (Non-GAAP)
(D) Total assets (GAAP)	$	41,099,003		$	40,832,258		$	40,635,924		$	41,076,795		$	40,463,195
Less: Intangible assets (GAAP) (b)	1,581,606			1,587,821			1,571,317			1,577,231			1,572,916
(E) Tangible assets (Non-GAAP)	$	39,517,397		$	39,244,437		$	39,064,607		$	39,499,564		$	38,890,279
Average Tangible Common Equity (Non-GAAP)										��
(F) Average total equity (GAAP)	$	4,809,235		$	4,730,698		$	4,611,302		$	4,552,546		$	4,573,916
Less: Average noncontrolling interest (a)	295,431			295,431			295,431			295,431			295,431
Less: Average preferred stock (a)	95,624			95,624			95,624			95,624			95,624
(G) Total average common equity	$	4,418,180		$	4,339,643		$	4,220,247		$	4,161,491		$	4,182,861
Less: Average intangible assets (GAAP) (b)	1,584,694			1,569,533			1,572,886			1,569,449			1,568,029
(H) Average tangible common equity (Non-GAAP)	$	2,833,486		$	2,770,110		$	2,647,361		$	2,592,042		$	2,614,832
Annualized Net Income/(loss) Available to Common Shareholders
(I) Net income /(loss) available to common shareholders (annualized) (GAAP)	$	401,642		$	382,238		$	1,072,318		$	327,257		$	367,531
Period-end Shares Outstanding
(J) Period-end shares outstanding	315,361			318,573			323,943			325,003			327,194
Ratios
(I)/(G) Return on average common equity (“ROCE”) (GAAP)	9.09		%	8.81		%	25.41		%	7.86		%	8.79		%
(I)/(H) Return on average tangible common equity (“ROTCE”) (Non-GAAP)	14.17		%	13.80		%	40.51		%	12.63		%	14.06		%
(A)/(D) Total equity to total assets (GAAP)	11.79		%	11.72		%	11.67		%	11.08		%	11.30		%
(C)/(E) Tangible common equity to tangible assets (“TCE/TA”) (Non-GAAP)	7.27		%	7.15		%	7.12		%	6.54		%	6.71		%
(B)/(J) Book value per common share (GAAP)	$	14.13		$	13.79		$	13.43		$	12.80		$	12.78
(C)/(J) Tangible book value per common share (Non-GAAP)	$	9.11		$	8.81		$	8.58		$	7.94		$	7.97

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

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

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

21

FHN GLOSSARY OF TERMS

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

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

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

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

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

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

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

Key Ratios

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

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

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

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

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

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

Asset Quality - Consolidated Key Ratios

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

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

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

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

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

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

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

22