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

1

FIRST QUARTER 2020

FINANCIAL SUPPLEMENT

If you need additional 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	7
Other Income and Other Expense	8
Acquisition, Restructuring, and Rebranding Expense	9
Balance Sheet
Period End Balance Sheet	10
Average Balance Sheet	11
Net Interest Income	12
Average Balance Sheet: Yields and Rates	13
Capital Highlights	14
Business Segment Detail
Segment Highlights	15
Regional Banking	16
Fixed Income and Corporate	17
Non-Strategic	18
Asset Quality
Asset Quality: Consolidated	19
Asset Quality: Regional Banking and Corporate	21
Asset Quality: Non-Strategic	22
Non-GAAP to GAAP Reconciliation	23
Glossary of Terms	24

Other Information

This financial supplement contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21 E of the Securities Exchange Act of 1934, as amended, (the "Exchange Act") with respect to First Horizon's ("FHN") beliefs, plans, goals, expectations, and estimates. Forward-looking statements are not a representation of historical information, but instead pertain to future operations, strategies, financial results or other developments. The words "believe," "expect," "anticipate," "intend," "estimate," "should," "is likely," "will," "going forward" and other expressions that indicate future events and trends identify forward-looking statements.

Forward-looking statements are necessarily based upon estimates and assumptions that are inherently subject to significant business, operational, economic and competitive uncertainties and contingencies, many of which are beyond the control of First Horizon, and many of which, with respect to future business decisions and actions, are subject to change and which could cause actual results to differ materially from those contemplated or implied by forward-looking statements or historical performance. 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, the potential impacts on FHN’s businesses of the coronavirus COVID-19 pandemic, including negative impacts from quarantines, market declines and volatility, and changes in customer behavior related to COVID-19,and items mentioned in this financial supplement and in FHN's 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 23 of this financial supplement.

2

FIRST HORIZON NATIONAL CORPORATION SEGMENT STRUCTURE

3

FHN PERFORMANCE HIGHLIGHTS
Significant events impacting FHN
l Effective January 1, 2020 FHN adopted ASU 2016-13, "Measurement of Credit Losses on Financial Instruments," (CECL); The adoption impact was a $106.4 million increase to the allowance for loan losses ("ALLL") and a $24.0 million increase to the reserve for unfunded commitments, resulting in a $96.1 million decrease of retained earnings (net of taxes).
l A sudden, steep decline in the economic forecast associated with the COVID-19 pandemic late in the quarter, and to a lesser extent an increase in loan balances, resulted in provision expense of $145.0 million and an increase in the reserve for unfunded commitments of $9.2 million in 1Q20.
l Application of CECL methodology creates larger immediate impacts on credit loss estimates in unanticipated rapid declines in economic projections when compared to the prior incurred loss estimation methodology.
l CECL methodology also has a larger impact on loan loss provisions when balances increase due to the "life of loan" loss estimation requirement.
l In response to the COVID-19 pandemic, FHN has adapted many operations to help ensure the health and safety of employees and customers.
l Among other things, FHN has implemented remote work policies, branch activities handled by appointment or via drive-through only, as well as additional sick time and child care assistance for employees.
l FHN is proactively reaching out to customers to discuss challenges and solutions, providing line draws and new extensions to existing customers, providing support for small businesses through the Paycheck Protection Program ("PPP") and other stimulus programs, and providing lending and deposit assistance through deferrals and waived fees.
Summary of First Quarter 2020 Notable Items
Segment	Item	Income Statement	Amount Favorable/ (Unfavorable)	Comments
Corporate	Acquisition expenses	Noninterest expense: various	$(5.8) million	Pre-tax acquisition-related expenses largely associated with the pending branch acquisition and merger of equals with IBERIABANK Corporation ("IBKC")
First Quarter 2020 vs. Fourth Quarter 2019

Consolidated								l Diluted EPS of $.04 in 1Q20, down from $.37 in 4Q19 driven by significant increase in provision expense lPPNR of $166.2 million and $167.3 million in 1Q20 and 4Q19 lLoan loss provision of $145 million in 1Q20, up from $10 million in 4Q19 reflecting application of CECL methodology to increase reserves associated with a sudden, steep decline in the economic forecast attributable to the COVID-19 pandemic lCharge offs of $7.2 million and $2.8 million in 1Q20 and 4Q19 l30+ delinquencies as a percentage of loans remained consistent l Total revenue down 3% lNII down from lower loan accretion, fewer days in the quarter, and the negative impact of interest rates (including LIBOR and Prime) l Decrease in fee income due to negative deferred compensation income and seasonally lower deposit fees, somewhat mitigated by higher fixed income revenue l NIM of 3.16% in 1Q20 compared to 3.26% in 4Q19; decrease primarily due to lower loan accretion and a decline in LIBOR lExpenses down 5% due to lower deferred compensation, charitable contributions, acquisition, and rebranding expenses, somewhat offset by an increase in the reserve for unfunded commitments and higher personnel-related expenses lStrong period-end loan and deposit growth
(Thousands, except per share data)	1Q20		4Q19		Change
Income Statement
Net interest income	$	302,802	$	311,393	(3	)	%
Noninterest income	174,756		183,307		(5	)	%
Total revenues	477,558		494,700		(3	)	%
Provision for loan losses	145,000		10,000		NM
Noninterest expense	311,319		327,447		(5	)	%
Income before income taxes	21,239		157,253		(86	)	%
Provision for income taxes	4,767		35,970		(87	)	%
Net income/(loss)	$	16,472	$	121,283	(86	)	%
PPNR (a)	$	166,214	$	167,256	(1	)	%
Diluted EPS	$	0.04	$	0.37	(89	)	%
Balance Sheet (millions)
Period-end Loans	$	33,378	$	31,061	7		%
Period-end Deposits	$	34,420	$	32,430	6		%
Average Loans	$	30,524	$	30,706	(1	)	%
Average Deposits	32,882		32,777		*
NM - Not Meaningful
* Amount is less than one percent.
(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.

4

FHN PERFORMANCE HIGHLIGHTS (continued)

First Quarter 2020 vs. Fourth Quarter 2019 (continued)

Regional Banking								lStrong period-end loan growth l Loan growth due to increases in C&I and specialty areas, with particular strength in loans to mortgage companies l Increased draws also contributed to increase in loans in 1Q20 l NII down from lower lower loan accretion, fewer days, and lower rates l    Increase in provision expense driven by the application of CECL methodology to increase reserves associated with a sudden, steep decline in the economic forecast late in the quarter l    Fee income down from seasonally lower NSF fee income and a decline in collections from Capital Bank Financial ("CBF") loans charged off prior to acquisition (under CECL these recoveries are now recognized as a reduction of provision), somewhat offset by an increase in fees from Trust services and investment management l    Expense increase primarily driven by a $9.1 million increase in the expense on unfunded commitments largely associated with the application of CECL methodology with a sudden, steep decline in the economic forecast attributable to the COVID-19 pandemic
(Thousands)	1Q20		4Q19		Change
Net interest income	$	300,128	$	310,808	(3	)	%
Noninterest income	81,871		89,553		(9	)	%
Total revenues	381,999		400,361		(5	)	%
Provision for loan losses	145,435		14,370		NM
Noninterest expense	211,013		202,124		4		%
Income before income taxes	$	25,551	$	183,867	(86	)	%
PPNR (a)	170,986		198,237		(14	)	%
Balance Sheet (millions)
Period-end Loans	$	32,496	$	30,112	8		%
Period-end Deposits	$	30,728	$	30,593	*
Average loans	$	29,608	$	29,722	*
Average deposits	30,579		30,413		1		%
NM - Not meaningful
* Amount is less than one percent.
(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								l1Q20 ADR of $1.3 million, compared to ADR of $1.1 million in 4Q19, up 19%; 1Q20 includes elevated levels of commissionable revenues, partially offset by elevated levels of trading losses driven by extreme volatility in March 2020 l NII up $3.7 million; Other product revenue up $2.0 million primarily driven by increases in derivatives and investment advisory l Expense increase driven by increased variable compensation, primarily due to increased commissionable revenues
(Thousands)	1Q20		4Q19		Change
Net interest income	$	10,914	$	7,232	51		%
Noninterest income	95,723		81,185		18		%
Total revenues	106,637		88,417		21		%
Noninterest expense	81,063		62,090		31		%
Income before income taxes	$	25,574	$	26,327	(3	)	%
Fixed income product ADR	$	1,264	$	1,061	19		%

Corporate										l    Lower fee income associated with negative deferred compensation income driven by equity market valuation declines l    Deferred compensation net impact of $1.5 million; $12.8 million decline in fee income, more than offset by a $14.4 million decline in expense l    Expense decrease also driven by $11.0 million of charitable contributions in 4Q19, as well as lower acquisition, rebranding, and restructuring-related expenses relative to 4Q19
(Thousands)	1Q20			4Q19			Change
Net interest income	$	(13,359	)	$	(12,826	)	(4	)	%
Noninterest income	(3,718		)	11,246			NM
Total revenues	(17,077		)	(1,580		)	NM
Noninterest expense	15,449			59,210			(74	)	%
Income before income taxes	$	(32,526	)	$	(60,790	)	46		%
NM - Not meaningful

5

FHN PERFORMANCE HIGHLIGHTS (continued)

First Quarter 2020 vs. Fourth Quarter 2019 (continued)

Non-Strategic										l  Non-Strategic results reflect continuing wind-down of the loan portfolio l   Reduced provision credit associated with additional consumer reserves associated with a sudden, steep decline in the economic forecast attributable to the COVID-19 pandemic
(Thousands)	1Q20			4Q19			Change
Net interest income	$	5,119		$	6,179		(17	)	%
Noninterest income	880			1,323			(33	)	%
Total revenues	5,999			7,502			(20	)	%
Provision for loan losses	(435		)	(4,370		)	90		%
Noninterest expense	3,794			4,023			(6	)	%
Income before income taxes	$	2,640		$	7,849		(66	)	%
Balance Sheet
Average loans	$	786		$	852		(8	)	%

Asset Quality							l    Increase in reserves primarily driven by increased reserves associated with a sudden, steep decline in the economic forecast attributable to the COVID-19 pandemic and the adoption of ASU 2016-13 (CECL) l  1Q20 activity - Commercial up $132.1 million; Consumer up $5.7 million l  CECL adoption - Commercial up $11.3 million; Consumer up $95.0 million l    Increase in net charge-offs driven by one commercial credit l    NPLs increased $27.6 million, primarily driven by one credit l    Increase in 30+ delinquencies primarily driven by two commercial credits; 30+ delinquencies as a percentage of loans flat
(Thousands)	1Q20		4Q19		Change
Allowance for loan losses	$444,490		$200,307		NM
Allowance / loans %	1.33	%	0.64	%
Net Charge-offs	$7,211		$2,842		NM
Net charge-offs %	0.10	%	0.04	%
Nonperforming Loans (a)	$189,813		$162,165		17	%
NPL %	0.57	%	0.52	%
30+ delinquencies	$62,642		$57,911		8	%
30+ delinquencies %	0.19	%	0.19	%
NM - Not meaningful
(a) Excludes loans held-for-sale.

Capital and Liquidity									lDeclared quarterly dividend of $.15 in 1Q20, up from $.14 in 4Q19  l No share repurchases in 1Q20 and 4Q19 l 1Q20 includes the impact of CECL adoption; amount calculated under the interim final rule to delay the effects of CECL on regulatory capital for two years, followed by a three-year transition period l 1Q20 decrease in risk-based capital ratios largely driven by an increase in risk-weighted assets due to: l Period-end commercial loan growth (primarily loans to mortgage companies) and higher draw activity in March l Market risk assets increase largely driven by spike in VaR due to extreme volatility in March
(millions)	1Q20			4Q19			Change
Common dividends declared (a)	$	46.7		$	43.5		7	%
Preferred dividends declared	$	1.6		$	1.6		*
Share repurchases	$	—		$	—		NM
Capital Ratios (b)
Common Equity Tier 1	8.52		%	9.20		%
Tier 1	9.49		%	10.15		%
Total Capital	10.75		%	11.22		%
Leverage	9.00		%	9.04		%
NM - Not meaningful
* Amount is less than one percent.
(a) 1Q20 common dividends paid April 1, 2020; 4Q19 common dividends paid January 2, 2020.
(b) Regulatory capital ratios calculated under the Basel III risk-based capital rules as phased-in; current quarter is an estimate.

6

FHN CONSOLIDATED INCOME STATEMENT

Quarterly, Unaudited

																1Q20 Changes vs.
(Dollars in thousands, except per share data)	1Q20			4Q19			3Q19			2Q19			1Q19			4Q19			1Q19
Interest income	$	378,368		$	404,142		$	407,494		$	412,089		$	400,615		(6	)	%	(6	)	%
Less: interest expense	75,566			92,749			106,818			108,479			106,107			(19	)	%	(29	)	%
Net interest income	302,802			311,393			300,676			303,610			294,508			(3	)	%	3		%
Provision/(provision credit) for loan losses (a)	145,000			10,000			15,000			13,000			9,000			NM			NM
Net interest income after provision for loan losses	157,802			301,393			285,676			290,610			285,508			(48	)	%	(45	)	%
Noninterest income:
Fixed income (b)	95,635			80,981			77,645			66,414			53,749			18		%	78		%
Deposit transactions and cash management	30,290			33,289			34,379			32,374			31,621			(9	)	%	(4	)	%
Brokerage, management fees and commissions	15,405			14,557			14,157			14,120			12,633			6		%	22		%
Trust services and investment management	7,195			7,434			7,163			7,888			7,026			(3	)	%	2		%
Bankcard income	7,253			7,984			7,017			6,355			6,952			(9	)	%	4		%
Bank-owned life insurance	4,589			5,255			4,427			5,126			4,402			(13	)	%	4		%
Securities gains/(losses), net	25			(3		)	97			49			31			NM			(19	)	%
Other (c)	14,364			33,810			26,850			25,667			24,631			(58	)	%	(42	)	%
Total noninterest income	174,756			183,307			171,735			157,993			141,045			(5	)	%	24		%
Adjusted gross income after provision for loan losses	332,558			484,700			457,411			448,603			426,553			(31	)	%	(22	)	%
Noninterest expense:
Employee compensation, incentives, and benefits (d) (e)	183,470			178,761			167,022			171,643			177,925			3		%	3		%
Legal fees (e)	1,823			2,709			4,854			6,486			2,831			(33	)	%	(36	)	%
Professional fees (e)	6,996			16,718			14,910			11,291			12,299			(58	)	%	(43	)	%
Occupancy (e)	19,563			19,972			18,887			20,719			20,693			(2	)	%	(5	)	%
Computer software	16,027			15,390			15,191			15,001			15,139			4		%	6		%
Contract employment and outsourcing	4,936			3,160			3,256			3,078			3,371			56		%	46		%
Operations services	11,692			11,171			11,634			11,713			11,488			5		%	2		%
Equipment rentals, depreciation, and maintenance	8,552			8,597			8,197			8,375			8,829			(1	)	%	(3	)	%
FDIC premium expense	6,742			5,806			5,564			4,247			4,273			16		%	58		%
Advertising and public relations (e)	7,456			14,897			6,646			5,574			7,242			(50	)	%	3		%
Communications and courier	5,528			5,597			5,650			7,380			6,453			(1	)	%	(14	)	%
Amortization of intangible assets	5,308			6,206			6,206			6,206			6,216			(14	)	%	(15	)	%
Other (c)	33,226			38,463			39,655			28,681			19,331			(14	)	%	72		%
Total noninterest expense	311,319			327,447			307,672			300,394			296,090			(5	)	%	5		%
Income before income taxes	21,239			157,253			149,739			148,209			130,463			(86	)	%	(84	)	%
Provision for income taxes	4,767			35,970			35,796			34,467			27,058			(87	)	%	(82	)	%
Net income/(loss)	16,472			121,283			113,943			113,742			103,405			(86	)	%	(84	)	%
Net income attributable to noncontrolling interest	2,852			2,910			2,883			2,852			2,820			(2	)	%	1		%
Net income/(loss) attributable to controlling interest	13,620			118,373			111,060			110,890			100,585			(88	)	%	(86	)	%
Preferred stock dividends	1,550			1,550			1,550			1,550			1,550			*			*
Net income/(loss) available to common shareholders	$	12,070		$	116,823		$	109,510		$	109,340		$	99,035		(90	)	%	(88	)	%
Common Stock Data
EPS	$	0.04		$	0.38		$	0.35		$	0.35		$	0.31		(89	)	%	(87	)	%
Basic shares (thousands)	311,597			311,250			311,888			314,063			317,435			*			(2	)	%
Diluted EPS	$	0.04		$	0.37		$	0.35		$	0.35		$	0.31		(89	)	%	(87	)	%
Diluted shares (thousands)	313,170			313,353			313,805			315,786			319,581			*			(2	)	%
Key Ratios & Other
Return on average assets (annualized) (f)	0.15		%	1.12		%	1.08		%	1.11		%	1.03		%
Return on average common equity (“ROCE”) (annualized) (f)	1.05		%	9.97		%	9.50		%	9.79		%	9.09		%
Return on average tangible common equity (“ROTCE”) (annualized) (f) (g)	1.59		%	15.03		%	14.49		%	15.12		%	14.17		%
Fee income to total revenue (f)	36.59		%	37.05		%	36.34		%	34.22		%	32.38		%
Efficiency ratio (f)	65.19		%	66.19		%	65.14		%	65.08		%	67.99		%
Average full time equivalent employees	4,969			5,005			5,116			5,287			5,524

NM - Not meaningful

* Amount is less than one percent.

(a) 1Q20 increase in provision expense primarily associated with a sudden, steep decline in the economic forecast attributable to the COVID-19 pandemic.

(b) 2Q19 includes $1.1 million of gains from the reversal of previous valuation adjustments due to the sales and payoff of TRUPS loans.

(c) Refer to the Other Income and Other Expense table on page 8 for additional information.

(d) 1Q20 and 4Q19 include $(10.3) million and $3.9 million, respectively, of deferred compensation expense.

(e) Refer to the Acquisition, Restructuring, and Rebranding expense tables on page 9 for additional information about variability in quarterly balances.

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

(g) This non-GAAP measure is reconciled to ROCE (GAAP) in the Non-GAAP to GAAP reconciliation on page 23 of this financial supplement.

7

FHN OTHER INCOME AND OTHER EXPENSE

Quarterly, Unaudited

																1Q20 Changes vs.
(Thousands)	1Q20			4Q19			3Q19			2Q19			1Q19			4Q19			1Q19
Other Income
ATM and interchange fees	$	4,212		$	4,529		$	4,507		$	4,262		$	3,241		(7	)	%	30		%
Dividend income	1,130			1,508			1,556			1,809			2,313			(25	)	%	(51	)	%
Electronic banking fees	1,030			1,101			1,288			1,267			1,271			(6	)	%	(19	)	%
Letter of credit fees	1,462			1,561			1,400			1,253			1,368			(6	)	%	7		%
Mortgage banking	2,431			3,578			2,019			2,572			1,886			(32	)	%	29		%
Deferred compensation (a)	(9,507		)	3,339			472			1,938			5,474			NM			NM
Insurance commissions	789			358			577			566			624			NM			26		%
Other service charges	5,219			5,755			5,738			5,624			3,869			(9	)	%	35		%
Gain/(loss) on extinguishment of debt	—			65			(6		)	—			(1		)	NM			NM
Other (b)	7,598			12,016			9,299			6,376			4,586			(37	)	%	66		%
Total	$	14,364		$	33,810		$	26,850		$	25,667		$	24,631		(58	)	%	(42	)	%
Other Expense
Litigation and regulatory matters	$	13		$	(394	)	$	11,534		$	(8,230	)	$	13		NM			*
Tax credit investments	346			460			407			267			675			(25	)	%	(49	)	%
Travel and entertainment	2,709			3,652			2,849			2,906			2,712			(26	)	%	*
Employee training and dues	1,341			1,430			1,003			1,251			1,457			(6	)	%	(8	)	%
Customer relations (c)	2,004			2,794			3,165			1,540			1,599			(28	)	%	25		%
Miscellaneous loan costs	1,094			1,227			1,017			857			1,027			(11	)	%	7		%
Supplies	2,411			2,104			1,668			1,342			1,804			15		%	34		%
OREO	(184		)	1,478			342			25			(366		)	NM			50		%
Other insurance and taxes	2,679			2,515			2,475			2,495			2,694			7		%	(1	)	%
Non-service components of net periodic pension and post retirement cost	2,508			327			986			559			432			NM			NM
Expense/(Credit) on unfunded commitments (d)	9,230			(790		)	(634		)	(489		)	396			NM			NM
Other (e)	9,075			23,660			14,843			26,158			6,888			(62	)	%	32		%
Total	$	33,226		$	38,463		$	39,655		$	28,681		$	19,331		(14	)	%	72		%

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

NM - Not meaningful

* Amount is less than one percent.

(a) Amounts driven by market conditions and are mirrored by changes in deferred compensation expense which is included in employee compensation expense; 1Q20 decrease driven by equity market valuations.

(b) Increase beginning in 2Q19 due in large part to higher fees from derivative sales; 4Q19 and 3Q19 include an increase in collections from CBF loans charged off prior to acquisition, under ASU 2016-13 (CECL) these collections are no longer recognized as part of fee income, but are accounted for as reductions of provision; 3Q19 includes $1.0 million of gains on the sales of buildings.

(c) 3Q19 increase driven by higher business development costs.

(d) 1Q20 increase largely associated with a sudden, steep decline in the economic forecast attributable to the COVID-19 pandemic.

(e) 4Q19 includes $11.0 million of charitable contributions; 3Q19 includes $4.0 million of valuation adjustments associated with derivatives related to prior sales of Visa Class B shares; Refer to the Acquisition, Restructuring, and Rebranding expense tables on page 9 for additional information about variability in quarterly balances.

8

ACQUISITION EXPENSE

Quarterly, Unaudited

					1Q20 Changes vs.
IBKC ACQUISITION EXPENSE	1Q20		4Q19		4Q19
(Thousands)
Legal and professional fees (a)	$	662	$	8,228	(92	)	%
Employee compensation, incentives, and benefits (b)	689		3,079		(78	)	%
Miscellaneous expense (e)	254		64		NM
Total IBKC acquisition expense	$	1,605	$	11,371	(86	)	%

														1Q20 Changes vs.
OTHER ACQUISITION EXPENSE	1Q20			4Q19			3Q19			2Q19		1Q19		4Q19			1Q19
(Thousands)
Legal and professional fees (a)	$	799		$	1,494		$	3,507		$	4,478	$	1,867	(47	)	%	(57	)	%
Employee compensation, incentives, and benefits (b)	396			1,035			1,473			1,472		1,517		(62	)	%	(74	)	%
Occupancy (c)	(25		)	(94		)	(76		)	1,505		118		73		%	NM
Contract employment and outsourcing (d)	306			35			223			17		—		NM			NM
Miscellaneous expense (e)	822			217			1,022			79		1,069		NM			(23	)	%
All other expense (f)	1,874			1,638			2,840			1,096		1,089		14		%	72		%
Total other acquisition expense	$	4,172		$	4,325		$	8,989		$	8,647	$	5,660	(4	)	%	(26	)	%

NM - Not meaningful

(a) Primarily comprised of fees for legal, accounting, and merger consultants.

(b) Primarily comprised of fees for severance and retention.

(c) Primarily relates to fees associated with lease exit accruals.

(d) Primarily relates to fees for temporary assistance for merger and integration activities.

(e) Consists of fees for operations services, communications and courier, equipment rentals, deprecation and maintenance, supplies, travel and entertainment, computer software, and advertising and public relations.

(f) Primarily relates to contract termination charges, internal technology development costs, costs of shareholder matters and asset impairments, as well as other miscellaneous expenses.

RESTRUCTURING EXPENSE

Quarterly, Unaudited

												1Q20 Changes vs.
	1Q20			4Q19			3Q19			2Q19	1Q19	4Q19			1Q19
(Thousands)
Legal and professional fees	$	7		$	989		$	6,488		$4,242	$4,295	(99	)	%	NM
Employee compensation, incentives, and benefits	57			259			1,182			2,557	6,505	(78	)	%	(99	)	%
Occupancy	2			57			(128		)	72	817	(96	)	%	NM
All other expense (a)	(103		)	(148		)	300			11,797	535	30		%	NM
Total restructuring expense	$	(37	)	$	1,157		$	7,842		$18,668	$12,152	NM			NM

NM - Not meaningful

(a) Primarily relates to costs associated with asset impairments.

REBRANDING EXPENSE

Quarterly, Unaudited

							��			1Q20 Changes vs.
	1Q20		4Q19		3Q19			2Q19		4Q19
(Thousands)
Legal and professional fees	$	265	$	1,016	$	879		$	882	(74	)	%
Advertising and public relations	116		6,360		663			423		(98	)	%
Supplies	53		862		105			325		(94	)	%
Miscellaneous expense	92		315		145			38		(71	)	%
All other expense (a)	5		561		1,322			7,406		(99	)	%
Total rebranding expense	$	531	$	9,114	$	3,114		$	9,074	(94	)	%

(a) Primarily relates to costs associated with fixed asset impairments and technology-related expenses.

9

FHN CONSOLIDATED PERIOD-END BALANCE SHEET

Quarterly, Unaudited 

																	1Q20 Changes vs.
(Thousands)	1Q20			4Q19			3Q19			2Q19				1Q19			4Q19			1Q19
Assets:
Investment securities	$	4,554,907		$	4,455,403		$	4,425,845		$	4,425,609			$	4,626,322		2		%	(2	)	%
Loans held-for-sale (a)	595,601			593,790			554,843			447,106				594,662			*			*
Loans, net of unearned income	33,378,303			31,061,111			31,260,833			29,712,810				27,990,048			7		%	19		%
Federal funds sold	30,050			46,536			48,747			50,705				167,602			(35	)	%	(82	)	%
Securities purchased under agreements to resell	562,435			586,629			697,214			602,919				474,679			(4	)	%	18		%
Interest-bearing cash (b)	670,525			482,405			364,412			593,180				1,013,254			39		%	(34	)	%
Trading securities	1,877,514			1,346,207			1,395,043			1,668,942				1,681,727			39		%	12		%
Total earning assets	41,669,335			38,572,081			38,746,937			37,501,271				36,548,294			8		%	14		%
Cash and due from banks	537,564			633,728			749,719			596,081				570,589			(15	)	%	(6	)	%
Fixed income receivables (c)	180,569			40,114			209,732			147,574				46,782			NM			NM
Goodwill	1,432,787			1,432,787			1,432,787			1,432,787				1,432,787			*			*
Other intangible assets, net	124,892			130,200			136,406			142,612				148,818			(4	)	%	(16	)	%
Premises and equipment, net	447,812			455,006			451,600			454,271				484,494			(2	)	%	(8	)	%
Other real estate owned ("OREO")	15,837			17,838			20,181			19,286			��	23,396			(11	)	%	(32	)	%
Allowance for loan losses (d)	(444,490		)	(200,307		)	(193,149		)	(192,749		)		(184,911		)	NM			NM
Derivative assets	696,250			183,115			250,786			185,521				118,128			NM			NM
Other assets	2,536,822			2,046,338			1,912,685			1,885,116				1,910,626			24		%	33		%
Total assets	$	47,197,378		$	43,310,900		$	43,717,684		$	42,171,770			$	41,099,003		9		%	15		%
Liabilities and Equity:
Deposits:
Consumer interest	$	13,813,999		$	13,866,920		$	13,670,204		$	13,705,969			$	13,707,310		*			1		%
Commercial interest	5,867,755			6,153,075			6,211,539			6,660,056				6,729,999			(5	)	%	(13	)	%
Market-indexed (e)	5,798,088			3,980,589			3,794,105			3,855,545				4,062,531			46		%	43		%
Total interest-bearing deposits	25,479,842			24,000,584			23,675,848			24,221,570				24,499,840			6		%	4		%
Noninterest-bearing deposits	8,939,808			8,428,951			8,268,812			8,086,748				7,963,048			6		%	12		%
Total deposits	34,419,650			32,429,535			31,944,660			32,308,318				32,462,888			6		%	6		%
Federal funds purchased	476,013			548,344			936,837			666,007				339,360			(13	)	%	40		%
Securities sold under agreements to repurchase	788,595			716,925			735,226			764,308				745,788			10		%	6		%
Trading liabilities	452,611			505,581			719,777			558,347				429,669			(10	)	%	5		%
Other short-term borrowings (f)	4,060,673			2,253,045			2,276,139			865,347				140,832			80		%	NM
Term borrowings (g)	792,751			791,368			1,195,096			1,186,646				1,177,926			*			(33	)	%
Fixed income payables (c)	91,274			49,535			66,842			66,369				100,290			84		%	(9	)	%
Derivative liabilities	234,984			67,480			83,530			88,485				107,123			NM			NM
Other liabilities	825,247			873,079			763,534			741,862				748,606			(5	)	%	10		%
Total liabilities	42,141,798			38,234,892			38,721,641			37,245,689				36,252,482			10		%	16		%
Equity:
Common stock	194,914			194,668			194,487			195,299				197,101			*			(1	)	%
Capital surplus	2,938,670			2,931,451			2,925,309			2,941,696				2,983,948			*			(2	)	%
Undivided profits (h)	1,667,105			1,798,442			1,725,846			1,660,520				1,595,568			(7	)	%	4		%
Accumulated other comprehensive loss, net	(136,164		)	(239,608		)	(240,654		)	(262,489		)		(321,151		)	(43	)	%	(58	)	%
Preferred stock	95,624			95,624			95,624			95,624				95,624			*			*
Noncontrolling interest (i)	295,431			295,431			295,431			295,431				295,431			*			*
Total equity	5,055,580			5,076,008			4,996,043			4,926,081				4,846,521			*			4		%
Total liabilities and equity	$	47,197,378		$	43,310,900		$	43,717,684		$	42,171,770			$	41,099,003		9		%	15		%

NM - Not meaningful

*Amount is less than one percent.

(a) 1Q20 includes $494.8 million of SBA and USDA loans, $95.9 million of mortgage loans, and $4.9 million of other consumer loans.

(b) Includes excess balances held at Fed.

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

(d) Effective 1/1/2020 FHN adopted ASU 2016-13, "Measurement of Credit Losses on Financial Instruments," (CECL) which resulted in an increase to the allowance for loan losses of $103.4 million; the remaining 1Q20 increase reflects increased reserves established in 1Q20 associated with a sudden, steep decline in the economic forecast attributable to the COVID-19 pandemic.

(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; 1Q20 increase used to support commercial loan growth, including loans to mortgage companies.

(f) Balance fluctuates largely based on the level of FHLB borrowings as a result of loan demand and deposit levels; 1Q20 increase used to support commercial loan growth, including loans to mortgage companies.

(g) In 4Q19 $400 million of First Horizon Bank senior capital notes matured.

(h) Effective 1/1/2020 FHN adopted ASU 2016-13 (CECL) which resulted in a net decrease to undivided profits of $96.1 million.

(i) Consists of preferred stock of subsidiaries.

10

FHN CONSOLIDATED AVERAGE BALANCE SHEET

Quarterly, Unaudited 

																1Q20 Changes vs.
(Thousands)	1Q20			4Q19			3Q19			2Q19			1Q19			4Q19			1Q19
Assets:
Earning assets:
Loans, net of unearned income:
Commercial, financial, and industrial (C&I) (a)	$	19,469,572		$	19,739,937		$	18,965,829		$	17,952,866		$	16,428,088		(1	)	%	19		%
Commercial real estate (a)	4,421,913			4,263,597			4,269,425			3,910,466			3,959,592			4		%	12		%
Consumer real estate (b)	6,134,390			6,194,134			6,283,488			6,310,039			6,410,184			(1	)	%	(4	)	%
Credit card and other	498,290			508,651			497,646			498,790			515,436			(2	)	%	(3	)	%
Total loans, net of unearned income (c)	30,524,165			30,706,319			30,016,388			28,672,161			27,313,300			(1	)	%	12		%
Loans held-for-sale (d)	590,458			581,810			455,239			606,685			670,401			1		%	(12	)	%
Investment securities:
U.S. treasuries	100			100			100			99			99			*			1		%
U.S. government agencies	4,330,905			4,327,651			4,289,719			4,461,712			4,494,814			*			(4	)	%
States and municipalities	64,668			54,146			49,025			41,911			33,400			19		%	94		%
Corporate bonds	50,570			50,493			50,414			64,720			65,194			*			(22	)	%
Other	20,409			15,933			18,837			14,609			10,249			28		%	99		%
Total investment securities	4,466,652			4,448,323			4,408,095			4,583,051			4,603,756			*			(3	)	%
Trading securities	1,831,492			1,263,633			1,391,405			1,564,201			1,443,969			45		%	27		%
Other earning assets:
Federal funds sold	10,192			9,700			21,225			47,664			113,043			5		%	(91	)	%
Securities purchased under agreements to resell	816,794			645,979			550,641			593,412			428,687			26		%	91		%
Interest-bearing cash (e)	548,036			586,495			545,784			648,927			1,717,696			(7	)	%	(68	)	%
Total other earning assets	1,375,022			1,242,174			1,117,650			1,290,003			2,259,426			11		%	(39	)	%
Total earning assets	38,787,789			38,242,259			37,388,777			36,716,101			36,290,852			1		%	7		%
Allowance for loan losses (f)	(353,794		)	(195,863		)	(196,586		)	(188,243		)	(182,332		)	81		%	94		%
Cash and due from banks	609,701			609,750			596,323			590,622			610,470			*			*
Fixed income receivables	111,474			75,917			75,938			64,958			55,393			47		%	NM
Premises and equipment, net	450,931			450,950			451,567			478,607			485,462			*			(7	)	%
Derivative assets	254,736			202,624			160,341			83,050			55,288			26		%	NM
Other assets	3,691,075			3,500,153			3,464,541			3,497,912			3,568,059			5		%	3		%
Total assets	$	43,551,912		$	42,885,790		$	41,940,901		$	41,243,007		$	40,883,192		2		%	7		%
Liabilities and equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Consumer interest	$	13,760,968		$	13,718,820		$	13,670,745		$	13,597,195		$	13,390,692		*			3		%
Commercial interest	6,006,364			6,145,681			6,321,835			6,599,793			6,577,476			(2	)	%	(9	)	%
Market-indexed (g)	4,448,587			4,370,025			4,143,012			3,818,949			4,734,295			2		%	(6	)	%
Total interest-bearing deposits	24,215,919			24,234,526			24,135,592			24,015,937			24,702,463			*			(2	)	%
Federal funds purchased	746,686			1,163,701			886,445			519,497			370,868			(36	)	%	NM
Securities sold under agreements to repurchase	777,692			701,213			722,815			691,490			688,765			11		%	13		%
Trading liabilities	750,520			585,889			501,203			548,653			375,169			28		%	NM
Other short-term borrowings (h)	1,686,690			844,558			535,585			650,387			114,474			NM			NM
Term borrowings (i)	791,043			928,214			1,185,853			1,183,205			1,172,618			(15	)	%	(33	)	%
Total interest-bearing liabilities	28,968,550			28,458,101			27,967,493			27,609,169			27,424,357			2		%	6		%
Noninterest-bearing deposits	8,666,087			8,542,521			8,235,806			7,947,607			7,795,015			1		%	11		%
Fixed income payables	54,900			34,510			33,059			25,579			21,978			59		%	NM
Derivative liabilities	16,171			59,114			19,632			61,715			94,943			(73	)	%	(83	)	%
Other liabilities	843,810			751,676			722,570			729,776			737,664			12		%	14		%
Total liabilities	38,549,518			37,845,922			36,978,560			36,373,846			36,073,957			2		%	7		%
Equity:
Common stock	194,827			194,574			194,930			196,319			198,460			*			(2	)	%
Capital surplus	2,935,372			2,928,463			2,934,276			2,964,824			3,015,017			*			(3	)	%
Undivided profits (j)	1,686,986			1,766,211			1,695,417			1,629,474			1,572,177			(4	)	%	7		%
Accumulated other comprehensive loss, net	(205,846		)	(240,435		)	(253,337		)	(312,511		)	(367,474		)	(14	)	%	44		%
Preferred stock	95,624			95,624			95,624			95,624			95,624			*			*
Noncontrolling interest (k)	295,431			295,431			295,431			295,431			295,431			*			*
Total equity	5,002,394			5,039,868			4,962,341			4,869,161			4,809,235			(1	)	%	4		%
Total liabilities and equity	$	43,551,912		$	42,885,790		$	41,940,901		$	41,243,007		$	40,883,192		2		%	7		%

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

NM - Not meaningful

*Amount is less than one percent.

(a) In 3Q19, FHN prospectively reclassified approximately $410 million of regional banking market investor CRE loans from the C&I portfolio to the CRE portfolio. The reclassification did not have an impact on FHN’s consolidated balance sheet and the impact to the consolidated financial statements from the effect on the allowance for loan losses is immaterial.

(b) In 1Q20, the Permanent Mortgage portfolio was combined into Consumer Real Estate portfolio, all prior periods were revised for comparability.

(c) Includes loans on nonaccrual status.

(d) 1Q20 includes $491.3 million of SBA and USDA loans, $94.1 million of mortgage loans, and $5.1 million of other consumer loans.

(e) Includes excess balances held at Fed.

(f) Effective 1/1/2020 FHN adopted ASU 2016-13, "Measurement of Credit Losses on Financial Instruments," (CECL) which resulted in an increase to the allowance for loan losses of $103.4 million.

(g) 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.

(h) Balance fluctuates largely based on the level of FHLB borrowings as a result of loan demand and deposit levels; 1Q20 increase used to support commercial loan growth, including loans to mortgage companies.

(i) In 4Q19 $400 million of First Horizon Bank senior capital notes matured.

(j) Effective 1/1/2020 FHN adopted ASU 2016-13 (CECL) which resulted in a net decrease to undivided profits of $96.1 million.

(k) Consists of preferred stock of subsidiaries.

11

FHN CONSOLIDATED NET INTEREST INCOME (a)

Quarterly, Unaudited 

																1Q20 Changes vs.
(Thousands)	1Q20			4Q19			3Q19			2Q19			1Q19			4Q19			1Q19
Interest Income:
Loans, net of unearned income (b)	$	328,526		$	356,176		$	357,724		$	354,067		$	334,167		(8	)	%	(2	)	%
Loans held-for-sale	6,899			7,053			6,069			8,128			9,877			(2	)	%	(30	)	%
Investment securities:
U.S. government agencies	25,127			26,500			26,322			29,075			30,107			(5	)	%	(17	)	%
States and municipalities	542			478			431			347			362			13		%	50		%
Corporate bonds	591			595			593			713			712			(1	)	%	(17	)	%
Other	1,732			1,352			1,634			1,278			895			28		%	94		%
Total investment securities	27,992			28,925			28,980			31,413			32,076			(3	)	%	(13	)	%
Trading securities	13,338			9,507			10,645			13,332			13,712			40		%	(3	)	%
Other earning assets:
Federal funds sold	27			51			141			326			733			(47	)	%	(96	)	%
Securities purchased under agreements to resell	2,303			2,467			2,800			3,301			2,336			(7	)	%	(1	)	%
Interest-bearing cash	1,536			2,359			2,700			3,689			10,209			(35	)	%	(85	)	%
Total other earning assets	3,866			4,877			5,641			7,316			13,278			(21	)	%	(71	)	%
Interest income	$	380,621		$	406,538		$	409,059		$	414,256		$	403,110		(6	)	%	(6	)	%
Interest Expense:
Interest-bearing deposits:
Consumer interest	$	18,337		$	22,957		$	26,670		$	25,666		$	24,641		(20	)	%	(26	)	%
Commercial interest	19,061			24,366			28,112			29,927			28,153			(22	)	%	(32	)	%
Market-indexed (c)	17,091			20,090			23,809			23,409			29,416			(15	)	%	(42	)	%
Total interest-bearing deposits	54,489			67,413			78,591			79,002			82,210			(19	)	%	(34	)	%
Federal funds purchased	2,214			5,026			4,898			3,142			2,287			(56	)	%	(3	)	%
Securities sold under agreements to repurchase	2,623			2,843			3,301			3,580			3,496			(8	)	%	(25	)	%
Trading liabilities	3,292			2,987			2,943			3,756			2,816			10		%	17		%
Other short-term borrowings	5,027			3,989			3,333			4,316			961			26		%	NM
Term borrowings (d)	7,921			10,491			13,752			14,683			14,337			(24	)	%	(45	)	%
Interest expense	75,566			92,749			106,818			108,479			106,107			(19	)	%	(29	)	%
Net interest income - tax equivalent basis	305,055			313,789			302,241			305,777			297,003			(3	)	%	3		%
Fully taxable equivalent adjustment	(2,253		)	(2,396		)	(1,565		)	(2,167		)	(2,495		)	6		%	10		%
Net interest income	$	302,802		$	311,393		$	300,676		$	303,610		$	294,508		(3	)	%	3		%

NM - Not meaningful

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

(b) Includes interest on loans in nonaccrual status.

(c) 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.

(d) In 4Q19 $400 million of First Horizon Bank senior capital notes matured.

12

FHN CONSOLIDATED AVERAGE BALANCE SHEET: YIELDS AND RATES

Quarterly, Unaudited 

	1Q20		4Q19		3Q19		2Q19		1Q19
Assets:
Earning assets (a)
Loans, net of unearned income (b)
Commercial loans	4.33	%	4.63	%	4.78	%	5.05	%	5.08	%
Consumer loans	4.33		4.51		4.55		4.65		4.59
Total loans, net of unearned income (c)	4.33		4.60		4.73		4.95		4.96
Loans held-for-sale	4.67		4.85		5.33		5.36		5.89
Investment securities:
U.S. government agencies	2.32		2.45		2.45		2.61		2.68
States and municipalities	3.35		3.53		3.51		3.31		4.33
Corporate bonds	4.67		4.71		4.71		4.41		4.37
Other	33.76		33.73		34.52		34.73		34.56
Total investment securities	2.51		2.60		2.63		2.74		2.79
Trading securities	2.91		3.01		3.06		3.41		3.80
Other earning assets:
Federal funds sold	1.05		2.10		2.64		2.74		2.63
Securities purchased under agreements to resell	1.13		1.52		2.02		2.23		2.21
Interest-bearing cash	1.13		1.60		1.96		2.28		2.41
Total other earning assets	1.13		1.56		2.00		2.27		2.38
Interest income/total earning assets	3.94	%	4.22	%	4.35	%	4.52	%	4.49	%
Liabilities:
Interest-bearing liabilities:
Interest-bearing deposits:
Consumer interest	0.54	%	0.66	%	0.77	%	0.76	%	0.75	%
Commercial interest	1.28		1.57		1.76		1.82		1.74
Market-indexed (d)	1.55		1.82		2.28		2.46		2.52
Total interest-bearing deposits	0.90		1.10		1.29		1.32		1.35
Federal funds purchased	1.19		1.71		2.19		2.43		2.50
Securities sold under agreements to repurchase	1.36		1.61		1.81		2.08		2.06
Trading liabilities	1.76		2.02		2.33		2.75		3.04
Other short-term borrowings	1.20		1.87		2.47		2.66		3.40
Term borrowings (e)	4.01		4.52		4.64		4.96		4.89
Interest expense/total interest-bearing liabilities	1.05		1.29		1.52		1.58		1.57
Net interest spread	2.89	%	2.93	%	2.83	%	2.94	%	2.92	%
Effect of interest-free sources used to fund earning assets	0.27		0.33		0.38		0.40		0.39
Net interest margin	3.16	%	3.26	%	3.21	%	3.34	%	3.31	%
Total loan yield	4.33	%	4.60	%	4.73	%	4.95	%	4.96	%
Total deposit cost	0.67	%	0.82	%	0.96	%	0.99	%	1.03	%

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; In 4Q19 $400 million of First Horizon Bank senior capital notes matured.

13

FHN CAPITAL HIGHLIGHTS

Quarterly, Unaudited 

																1Q20 Changes vs.
(Dollars and shares in thousands)	1Q20			4Q19			3Q19			2Q19			1Q19			4Q19		1Q19
Common equity tier 1 capital (a) (b) (c)	$	3,421,763		$	3,408,936		$	3,326,059		$	3,270,484		$	3,239,249		*		6		%
Tier 1 capital (a) (b) (c)	3,812,203			3,760,450			3,679,158			3,620,001			3,583,577			1	%	6		%
Total capital (a) (c)	4,319,384			4,154,885			4,065,306			4,009,116			3,963,901			4	%	9		%
Risk-weighted assets (“RWA”) (a) (b) (d)	40,169,550			37,045,782			36,913,347			35,341,740			33,656,950			8	%	19		%
Average assets for leverage (a) (b)	42,348,418			41,583,446			40,660,442			40,022,187			39,717,387			2	%	7		%
Common equity tier 1 ratio (a) (b) (c)	8.52		%	9.20		%	9.01		%	9.25		%	9.62		%
Tier 1 ratio (a) (b) (c)	9.49		%	10.15		%	9.97		%	10.24		%	10.65		%
Total capital ratio (a) (c)	10.75		%	11.22		%	11.01		%	11.34		%	11.78		%
Leverage ratio (a) (b) (c)	9.00		%	9.04		%	9.05		%	9.04		%	9.02		%
Total equity to total assets (c)	10.71		%	11.72		%	11.43		%	11.68		%	11.79		%
Tangible common equity/tangible assets (“TCE/TA”) (c) (e)	6.81		%	7.48		%	7.20		%	7.29		%	7.27		%
Period-end shares outstanding (f)	311,863			311,469			311,180			312,478			315,361			*		(1	)	%
Cash dividends declared per common share	$	0.15		$	0.14		$	0.14		$	0.14		$	0.14		7	%	7		%
Book value per common share (c)	$	14.96		$	15.04		$	14.80		$	14.51		$	14.13
Tangible book value per common share (c) (e)	$	9.96		$	10.02		$	9.76		$	9.47		$	9.11
Market capitalization (millions) (g)	$	2,513.6		$	5,157.9		$	5,041.1		$	4,665.3		$	4,408.7

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) 1Q20 includes the impact of CECL adoption; amount calculated under the interim final rule to delay the effects of CECL on regulatory capital for two years, followed by a three-year transition period.

(d) 1Q20 increase in risk-weighted assets due to period-end commercial loan growth (primarily loans to mortgage companies), higher draw activity in March, and increased market risk assets for Fixed Income.

(e) TCE/TA and Tangible book value per common share are non-GAAP measures and are reconciled to Total equity to total assets (GAAP) and to Book value per common share (GAAP), respectively, in the Non-GAAP to GAAP reconciliation on page 23 of this financial supplement.

(f) Decreases largely attributable to shares repurchased under share repurchase programs.

(g) 1Q20 decrease driven by a sharp decline in FHN's share price attributable to market uncertainty associated with the COVID-19 pandemic.

14

FHN BUSINESS SEGMENT HIGHLIGHTS

Quarterly, Unaudited 

																1Q20 Changes vs.
(Thousands)	1Q20			4Q19			3Q19			2Q19			1Q19			4Q19			1Q19
Regional Banking
Net interest income	$	300,128		$	310,808		$	302,483		$	297,449		$	286,023		(3	)	%	5		%
Noninterest income	81,871			89,553			85,776			81,474			73,029			(9	)	%	12		%
Total revenues	381,999			400,361			388,259			378,923			359,052			(5	)	%	6		%
Provision for loan losses (a)	145,435			14,370			20,471			17,776			13,442			NM			NM
Noninterest expense (b)	211,013			202,124			192,427			192,354			198,569			4		%	6		%
Income before income taxes	25,551			183,867			175,361			168,793			147,041			(86	)	%	(83	)	%
Provision for income taxes	4,388			43,285			41,984			39,759			34,109			(90	)	%	(87	)	%
Net income	$	21,163		$	140,582		$	133,377		$	129,034		$	112,932		(85	)	%	(81	)	%
Fixed Income
Net interest income	$	10,914		$	7,232		$	5,311		$	6,171		$	7,332		51		%	49		%
Noninterest income (c)	95,723			81,185			77,809			65,622			53,807			18		%	78		%
Total revenues	106,637			88,417			83,120			71,793			61,139			21		%	74		%
Noninterest expense (d)	81,063			62,090			67,576			55,534			50,533			31		%	60		%
Income before income taxes	25,574			26,327			15,544			16,259			10,606			(3	)	%	NM
Provision/(benefit) for income taxes	6,099			6,362			3,708			3,840			2,457			(4	)	%	NM
Net income	$	19,475		$	19,965		$	11,836		$	12,419		$	8,149		(2	)	%	NM
Corporate
Net interest income/(expense)	$	(13,359	)	$	(12,826	)	$	(13,339	)	$	(7,146	)	$	(7,914	)	(4	)	%	(69	)	%
Noninterest income (e) (f)	(3,718		)	11,246			7,359			9,401			13,353			NM			NM
Total revenues	(17,077		)	(1,580		)	(5,980		)	2,255			5,439			NM			NM
Noninterest expense (e) (g)	15,449			59,210			43,217			56,873			41,779			(74	)	%	(63	)	%
Income/(loss) before income taxes	(32,526		)	(60,790		)	(49,197		)	(54,618		)	(36,340		)	46		%	10		%
Provision/ (benefit) for income taxes	(6,372		)	(15,616		)	(11,881		)	(13,525		)	(11,771		)	59		%	46		%
Net income/(loss)	$	(26,154	)	$	(45,174	)	$	(37,316	)	$	(41,093	)	$	(24,569	)	42		%	(6	)	%
Non-Strategic
Net interest income	$	5,119		$	6,179		$	6,221		$	7,136		$	9,067		(17	)	%	(44	)	%
Noninterest income (h)	880			1,323			791			1,496			856			(33	)	%	3		%
Total revenues	5,999			7,502			7,012			8,632			9,923			(20	)	%	(40	)	%
Provision/(provision credit) for loan losses (a)	(435		)	(4,370		)	(5,471		)	(4,776		)	(4,442		)	90		%	90		%
Noninterest expense (i)	3,794			4,023			4,452			(4,367		)	5,209			(6	)	%	(27	)	%
Income before income taxes	2,640			7,849			8,031			17,775			9,156			(66	)	%	(71	)	%
Provision for income taxes	652			1,939			1,985			4,393			2,263			(66	)	%	(71	)	%
Net income	$	1,988		$	5,910		$	6,046		$	13,382		$	6,893		(66	)	%	(71	)	%
Total Consolidated
Net interest income	$	302,802		$	311,393		$	300,676		$	303,610		$	294,508		(3	)	%	3		%
Noninterest income	174,756			183,307			171,735			157,993			141,045			(5	)	%	24		%
Total revenues	477,558			494,700			472,411			461,603			435,553			(3	)	%	10		%
Provision/(provision credit) for loan losses (a)	145,000			10,000			15,000			13,000			9,000			NM			NM
Noninterest expense	311,319			327,447			307,672			300,394			296,090			(5	)	%	5		%
Income before income taxes	21,239			157,253			149,739			148,209			130,463			(86	)	%	(84	)	%
Provision for income taxes	4,767			35,970			35,796			34,467			27,058			(87	)	%	(82	)	%
Net income	$	16,472		$	121,283		$	113,943		$	113,742		$	103,405		(86	)	%	(84	)	%

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

NM - Not meaningful    

* Amount is less than one percent.

(a) 1Q20 increase in provision expense primarily associated with a sudden, steep decline in the economic forecast attributable to the COVID-19 pandemic.

(b) 1Q20 includes a $9.1 million increase in the expense on unfunded commitments due to a sudden, steep decline in the economic forecast attributable to the COVID-19 pandemic.

(c) 1Q20 includes elevated levels of commissionable revenues, partially offset by elevated levels of trading losses driven by extreme volatility in March 2020.

(d) 3Q19 includes a $7.5 million unfavorable adjustment associated with the net impact of the resolution of legal matters.

(e) Refer to the Deferred Compensation table at the bottom of the Corporate section on page 17 for additional information about the variability in quarterly balances.

(f) 1Q19 includes a $1.8 million negative valuation adjustment on HFS consumer loans included in the Non-Strategic segment.

(g) Refer to the Acquisition, Restructuring, and Rebranding expense tables on page 9 for additional information about variability in quarterly balances; 4Q19 includes $11.0 million of charitable contributions; 3Q19 includes $4.0 million of valuation adjustments associated with derivatives related to prior sales of Visa Class B shares.

(h) 2Q19 includes $1.1 million of gains from the reversal of previous valuation adjustments due to the sales and payoff of TRUPS loans.

(i) 2Q19 includes an $8.3 million expense reversal related to the resolution of legal matters.

15

FHN REGIONAL BANKING

Quarterly, Unaudited 

											1Q20 Changes vs.
	1Q20		4Q19		3Q19		2Q19		1Q19		4Q19			1Q19
Income Statement (thousands)
Net interest income	$	300,128	$	310,808	$	302,483	$	297,449	$	286,023	(3	)	%	5		%
Provision for loan losses (a)	145,435		14,370		20,471		17,776		13,442		NM			NM
Noninterest income:
NSF / Overdraft fees (b)	10,920		13,322		13,699		12,348		11,579		(18	)	%	(6	)	%
Cash management fees	9,289		9,201		9,561		8,026		8,857		1		%	5		%
Debit card income	4,305		4,659		4,749		4,960		5,372		(8	)	%	(20	)	%
Other	4,298		4,456		4,574		5,274		4,195		(4	)	%	2		%
Total deposit transactions and cash management	28,812		31,638		32,583		30,608		30,003		(9	)	%	(4	)	%
Brokerage, management fees and commissions	15,405		14,558		14,156		14,118		12,630		6		%	22		%
Trust services and investment management	7,213		7,452		7,190		7,902		7,056		(3	)	%	2		%
Bankcard income	7,150		7,879		7,028		6,594		7,039		(9	)	%	2		%
Other service charges	5,152		5,691		5,650		5,460		3,711		(9	)	%	39		%
Miscellaneous revenue (c)	18,139		22,335		19,169		16,792		12,590		(19	)	%	44		%
Total noninterest income	81,871		89,553		85,776		81,474		73,029		(9	)	%	12		%
Noninterest expense:
Employee compensation, incentives, and benefits	79,019		74,466		73,713		76,752		81,796		6		%	(3	)	%
Other (d)	131,994		127,658		118,714		115,602		116,773		3		%	13		%
Total noninterest expense	211,013		202,124		192,427		192,354		198,569		4		%	6		%
Income before income taxes	$	25,551	$	183,867	$	175,361	$	168,793	$	147,041	(86	)	%	(83	)	%
PPNR (e)	170,986		198,237		195,832		186,569		160,483		(14	)	%	7		%
Balance Sheet (millions)
Average loans	$	29,608	$	29,722	$	28,958	$	27,533	$	26,107	*			13		%
Average other earning assets	48		53		47		47		39		(9	)	%	23		%
Total average earning assets	29,656		29,775		29,005		27,580		26,146		*			13		%
Total average deposits	30,579		30,413		30,044		29,954		29,590		1		%	3		%
Total period-end deposits	30,728		30,593		30,060		30,272		30,354		*			1		%
Total period-end assets	35,108		32,889		33,149		31,333		29,537		7		%	19		%
Key Statistics
Return on average assets (quarters are annualized) (f)	0.26%		1.72%		1.67%		1.71%		1.59%
Return on allocated equity (f) (g)	2.80%		18.19%		17.56%		17.43%		15.59%
Fee income to total revenue (f)	21.43%		22.37%		22.09%		21.50%		20.34%
Efficiency ratio (f)	55.24%		50.49%		49.56%		50.76%		55.30%
Net interest margin (h)	4.10%		4.17%		4.16%		4.35%		4.47%
Net interest spread	3.65%		3.77%		3.82%		3.99%		3.98%
Loan average yield	4.24%		4.50%		4.68%		4.88%		4.86%
Deposit average rate	0.59%		0.73%		0.86%		0.89%		0.88%
Regional banking net charge-offs/(recoveries)	$	8,119	$	5,886	$	17,074	$	7,841	$	5,540	38		%	47		%
Financial center locations (i)	269		269		270		292		292		*			(8	)	%

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

NM - Not meaningful    

* Amount is less than one percent

(a) 1Q20 increase in provision expense primarily associated with a sudden, steep decline in the economic forecast attributable to the COVID-19 pandemic.

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

(c) Increase beginning in 2Q19 due in large part to higher fees from derivative sales; 4Q19 and 3Q19 include an increase in collections from CBF loans charged off prior to acquisition, under ASU 2016-13 (CECL) these collections are no longer recognized as part of fee income, but are accounted for as reductions of provision.

(d) 1Q20 includes a $9.1 million increase in the expense on unfunded commitments due to a sudden, steep decline in the economic forecast attributable to the COVID-19 pandemic; 4Q19 increase due in large part to higher strategic investments in technology and advertising.

(e) 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.

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

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

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

(i) 3Q19 decrease driven by restructuring, repositioning, and efficiency initiatives.

16

FHN FIXED INCOME

Quarterly, Unaudited

																1Q20 Changes vs.
	1Q20			4Q19			3Q19			2Q19			1Q19			4Q19			1Q19
Income Statement (thousands)
Net interest income	$	10,914		$	7,232		$	5,311		$	6,171		$	7,332		51		%	49		%
Noninterest income:
Fixed income product revenue (a)	78,354			65,772			63,646			54,533			44,472			19		%	76		%
Other	17,369			15,413			14,163			11,089			9,335			13		%	86		%
Total noninterest income	95,723			81,185			77,809			65,622			53,807			18		%	78		%
Noninterest expense (b)	81,063			62,090			67,576			55,534			50,533			31		%	60		%
Income before income taxes	$	25,574		$	26,327		$	15,544		$	16,259		$	10,606		(3	)	%	NM
Fixed income product average daily revenue	$	1,264		$	1,061		$	994		$	866		$	729		19		%	73		%
Balance Sheet (millions)
Average trading inventory	$	1,831		$	1,263		$	1,390		$	1,563		$	1,443		45		%	27		%
Average loans held-for-sale	491			477			367			528			571			3		%	(14	)	%
Average other earning assets	949			829			709			670			491			14		%	93		%
Total average earning assets	3,271			2,569			2,466			2,761			2,505			27		%	31		%
Total period-end assets	3,965			2,987			3,323			3,232			3,094			33		%	28		%
Key Statistics
Return on average assets (b)	2.08		%	2.65		%	1.63		%	1.59		%	1.16		%
Return on allocated equity (b) (c)	37.12		%	39.92		%	23.61		%	24.64		%	16.56		%
Efficiency ratio (b)	76.02		%	70.22		%	81.30		%	77.35		%	82.65		%
Net interest margin (d)	1.36		%	1.15		%	0.88		%	0.92		%	1.19		%

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

NM - Not meaningful

(a) 1Q20 includes elevated levels of commissionable revenues, partially offset by elevated levels of trading losses driven by extreme volatility in March 2020.

(b) 3Q19 includes a $7.5 million unfavorable adjustment associated with the net impact of the resolution of legal matters.

(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 NII adjusted for FTE assuming a statutory federal income tax rate of 21 percent, and, where applicable, state income taxes.

FHN CORPORATE

Quarterly, Unaudited

																1Q20 Changes vs.
	1Q20			4Q19			3Q19			2Q19			1Q19			4Q19			1Q19
Income Statement (thousands)
Net interest income/(expense)	$	(13,359	)	$	(12,826	)	$	(13,339	)	$	(7,146	)	$	(7,914	)	(4	)	%	(69	)	%
Noninterest income excluding securities gains/(losses) (a)	(3,743		)	11,249			7,262			9,352			13,322			NM			NM
Securities gains/(losses), net	25			(3		)	97			49			31			NM			(19	)	%
Noninterest expense (b)	15,449			59,210			43,217			56,873			41,779			(74	)	%	(63	)	%
Income/(loss) before income taxes	$	(32,526	)	$	(60,790	)	$	(49,197	)	$	(54,618	)	$	(36,340	)	46		%	10		%
Average Balance Sheet (millions)
Average investment securities	$	4,446		$	4,432		$	4,389		$	4,568		$	4,594		*			(3	)	%
Total earning assets	$	5,010		$	4,980		$	4,916		$	5,295		$	6,463		1		%	(22	)	%
Deferred Compensation (thousands)
Other Income	$	(9,507	)	$	3,339		$	472		$	1,938		$	5,474		NM			NM
Employee compensation, incentives, and benefits	$	(10,548	)	$	3,846		$	567		$	2,150		$	6,221		NM			NM

Estimated effective duration of securities portfolio 1.3 years in 1Q20 compared to 3.0 years in 4Q19

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

NM - Not Meaningful    

* Amount is less than one percent.

(a) Variability in quarterly balances driven by fluctuations in deferred compensation income driven by equity market valuations and mirrored by changes in deferred compensation expense which is included in employee compensation expense; 3Q19 includes $1.0 million of gains on the sales of buildings.

(b) Refer to the Acquisition, Restructuring, and Rebranding expense tables on page 9 for additional information about variability in quarterly balances; 4Q19 includes $11.0 million of charitable contributions; 3Q19 includes $4.0 million of valuation adjustments associated with derivatives related to prior sales of Visa Class B shares.

17

FHN NON-STRATEGIC

Quarterly, Unaudited

																1Q20 Changes vs.
	1Q20			4Q19			3Q19			2Q19			1Q19			4Q19			1Q19
Income Statement (thousands)
Net interest income	$	5,119		$	6,179		$	6,221		$	7,136		$	9,067		(17	)	%	(44	)	%
Provision/(provision credit) for loan losses (a)	(435		)	(4,370		)	(5,471		)	(4,776		)	(4,442		)	90		%	90		%
Noninterest income (b)	880			1,323			791			1,496			856			(33	)	%	3		%
Noninterest expense (c)	3,794			4,023			4,452			(4,367		)	5,209			(6	)	%	(27	)	%
Income before income taxes	$	2,640		$	7,849		$	8,031		$	17,775		$	9,156		(66	)	%	(71	)	%
Average Balance Sheet (millions)
Loans	$	786		$	852		$	935		$	1,011		$	1,087		(8	)	%	(28	)	%
Other assets	53			68			66			77			88			(22	)	%	(40	)	%
Total assets	839			920			1,001			1,088			1,175			(9	)	%	(29	)	%
Key Statistics
Return on average assets (d)	0.95		%	2.55		%	2.40		%	4.93		%	2.38		%
Return on allocated equity (d) (e)	15.76		%	37.12		%	32.45		%	64.83		%	26.22		%
Fee income to total revenue (d)	14.67		%	17.64		%	11.28		%	17.33		%	8.63		%
Efficiency ratio (d)	63.24		%	53.63		%	63.49		%	NM			52.49		%
Net interest margin (f)	2.42		%	2.68		%	2.47		%	2.65		%	3.11		%
Net charge-offs/(recoveries)	$	(908	)	$	(3,044	)	$	(2,474	)	$	(2,679	)	$	(1,027	)	70		%	12		%

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

NM - Not meaningful

(a) 1Q20 increase in provision expense primarily associated with a sudden, steep decline in the economic forecast attributable to the COVID-19 pandemic.

(b) 2Q19 includes $1.1 million of gains from the reversal of previous valuation adjustments due to the sales and payoff of TRUPS loans.

(c) 2Q19 includes an $8.3 million expense reversal related to the settlement of litigation matters.

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

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

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

18

FHN ASSET QUALITY: CONSOLIDATED

Quarterly, Unaudited 

																					1Q20 Changes vs.
(Dollars in thousands)	1Q20				4Q19				3Q19				2Q19				1Q19				4Q19	1Q19
Allowance for Loan Losses Walk-Forward
Beginning reserve	$	200,307			$	193,149			$	192,749			$	184,911			$	180,424			4%	11%
ASU Adoption 2016-13 (a)	106,394				—				—				—				—				NM	NM
Provision/(provision credit) for loan losses (a)	145,000				10,000				15,000				13,000				9,000				NM	NM
Charge-offs	(13,453			)	(11,646			)	(24,337			)	(12,223			)	(10,527			)	(16)%	(28)%
Recoveries	6,242				8,804				9,737				7,061				6,014				(29)%	4%
Ending balance	$	444,490			$	200,307			$	193,149			$	192,749			$	184,911			NM	NM
Reserve for unfunded commitments (b)	39,303				6,101				6,890				7,524				8,014				NM	NM
Total allowance for loan losses plus reserve for unfunded commitments	$	483,793			$	206,408			$	200,039			$	200,273			$	192,925			NM	NM
Allowance for Loan Losses (a) (c)
Regional Banking	$	413,552			$	182,730			$	174,246			$	170,849			$	160,914			NM	NM
Non-Strategic	30,938				17,577				18,903				21,900				23,997				76%	29%
Total allowance for loan losses	$	444,490			$	200,307			$	193,149			$	192,749			$	184,911			NM	NM
Nonperforming Assets
Regional Banking
Nonperforming loans (d)	$	142,916			$	113,187			$	118,506			$	145,265			$	115,977			26%	23%
OREO	10,278				12,347				13,408				13,251				16,698				(17)%	(38)%
Total Regional Banking	$	153,194			$	125,534			$	131,914			$	158,516			$	132,675			22%	15%
Non-Strategic
Nonperforming loans	$	45,595			$	47,651			$	52,346			$	57,654			$	63,960			(4)%	(29)%
Nonperforming loans held-for-sale after fair value adjustments	3,611				4,047				4,199				4,514				5,219				(11)%	(31)%
OREO	3,603				3,313				4,408				3,342				3,978				9%	(9)%
Total Non-Strategic	$	52,809			$	55,011			$	60,953			$	65,510			$	73,157			(4)%	(28)%
Corporate
Nonperforming loans	$	1,302			$	1,327			$	1,643			$	1,667			$	1,687			(2)%	(23)%
Total nonperforming assets	$	207,305			$	181,872			$	194,510			$	225,693			$	207,519			14%	*
Net Charge-Offs
Regional Banking	$	8,119			$	5,886			$	17,074			$	7,841			$	5,540			38%	47%
Non-Strategic	(908			)	(3,044			)	(2,474			)	(2,679			)	(1,027			)	70%	12%
Total net charge-offs/(recoveries)	$	7,211			$	2,842			$	14,600			$	5,162			$	4,513			NM	60%
Consolidated Key Ratios (e)
30+ Delinq. % (f)	0.19		%		0.19		%		0.23		%		0.20		%		0.23		%
NPL %	0.57				0.52				0.55				0.69				0.65
NPA %	0.61				0.57				0.61				0.74				0.72
Net charge-offs % (g)	0.10				0.04				0.19				0.07				0.07
Allowance / loans % (a)	1.33				0.64				0.62				0.65				0.66
Allowance / NPL (a)	2.34		x		1.24		x		1.12		x		0.94		x		1.02		x
Allowance / NPA (a)	2.18		x		1.13		x		1.01		x		0.87		x		0.91		x
Allowance / net charge-offs	15.33		x		17.76		x		3.33		x		9.31		x		10.10		x
Other
Loans past due 90 days or more and still accruing (h)	$	20,340			$	28,343			$	27,182			$	28,663			$	30,896			(28)%	(34)%
Guaranteed portion (h)	5,165				6,417				6,028				5,628				5,725				(20)%	(10)%
Period-end loans, net of unearned income (millions)	33,378				31,061				31,261				29,713				27,990				7%	19%
30+ delinquencies (thousands)	$	62,642			$	57,911			$	70,675			$	58,861			$	63,693			8%	(2)%

NM - Not meaningful

* Amount is less than one percent.

(a) 1Q20 increase in ALLL and allowance ratios is due to a sudden, steep decline in the economic forecast attributable to the COVID-19 pandemic and the adoption of CECL.

(b) 1Q20 increase is due to the adoption of CECL ($24.0 million) and a sudden, steep decline in the economic forecast attributable to the COVID-19 pandemic ($9.2 million).

(c) In 2Q19, the Home Builder Finance ("HBF") portfolio was retrospectively reclassified from the Regional Banking segment to the Non-Strategic segment.

(d) 3Q19 decrease in nonperforming loans was primarily driven by one mortgage warehouse lending relationship that converted to the underlying collateral.

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

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

(g) 3Q19 increase in charge-offs as a percentage of loans was primarily driven by two credits.

(h) Includes loans held-for-sale.

19

FHN ASSET QUALITY: CONSOLIDATED

Quarterly, Unaudited 

																1Q20 Changes vs.
	1Q20			4Q19			3Q19			2Q19			1Q19			4Q19	1Q19
Key Portfolio Details
C&I (a)
Period-end loans ($ millions)	$	22,124		$	20,051		$	20,294		$	19,054		$	17,176		10%	29%
30+ Delinq. % (b) (c)	0.08		%	0.05		%	0.11		%	0.05		%	0.07		%
NPL % (d)	0.43			0.37			0.38			0.56			0.44
Charge-offs % (qtr. annualized) (e)	0.12			0.07			0.32			0.14			0.06
Allowance / loans % (f)	1.15		%	0.61		%	0.56		%	0.61		%	0.60		%
Allowance / net charge-offs	10.88		x	9.25		x	1.87		x	4.77		x	11.26		x
Commercial Real Estate (a)
Period-end loans ($ millions)	$	4,640		$	4,337		$	4,229		$	3,861		$	3,947		7%	18%
30+ Delinq. % (b)	0.01		%	0.02		%	0.04		%	0.07		%	0.04		%
NPL %	0.05			0.04			0.05			0.07			0.07
Charge-offs % (qtr. annualized)	0.00			NM			0.02			0.02			0.04
Allowance / loans % (f)	1.03		%	0.83		%	0.84		%	0.85		%	0.87		%
Allowance / net charge-offs	NM			NM			47.70		x	39.25		x	22.50		x
Consumer Real Estate (g)
Period-end loans ($ millions)	$	6,119		$	6,177		$	6,245		$	6,303		$	6,361		(1)%	(4)%
30+ Delinq. % (b) (h)	0.66		%	0.70		%	0.68		%	0.66		%	0.70		%
NPL %	1.49			1.39			1.50			1.50			1.63
Charge-offs % (qtr. annualized)	NM			NM			NM			NM			NM
Allowance / loans % (f)	2.01		%	0.46		%	0.49		%	0.50		%	0.54		%
Allowance / net charge-offs	NM			NM			NM			NM			NM
Credit Card and Other
Period-end loans ($ millions)	$	495		$	496		$	493		$	495		$	506		*	(2)%
30+ Delinq. % (b)	0.99		%	0.93		%	0.94		%	1.06		%	1.20		%
NPL %	0.07			0.07			0.07			0.09			0.09
Charge-offs % (qtr. annualized)	2.12			2.29			2.10			2.17			2.44
Allowance / loans % (f)	3.91		%	2.68		%	2.58		%	2.46		%	2.50		%
Allowance / net charge-offs	1.83		x	1.14		x	1.21		x	1.13		x	1.01		x

NM - Not meaningful

* Amount is less than one percent.

(a) In 3Q19, FHN reclassified approximately $410 million of regional banking market investor CRE loans from the C&I portfolio to the CRE portfolio. The reclassification did not have an impact on FHN’s consolidated balance sheet and the impact to the consolidated financial statements from the effect on the allowance for loan losses is immaterial. No adjustments were made to prior periods as the impact of the reclassification, including the effect on the allowance for loan losses was deemed to be immaterial in all periods.

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

(c) 1Q20 increase in delinquencies as a percentage of total loans was primarily driven by two credits; 3Q19 increase in delinquencies as a percentages of total loans was primarily driven by one credit.

(d) 1Q20 increase in NPLs as a percentage of total loans was primarily driven by one credit; 2Q19 increase in NPLs as a percentage of total loans was primarily driven by one credit.

(e) 1Q20 increase in charge-offs as a percentage of total loans was primarily driven by one credit; 3Q19 increase in charge-offs as a percentage of loans was primarily driven by two credits; 2Q19 increase in charge-offs as a percentage of total loans was primarily driven by one credit.

(f) 1Q20 increase in allowance as a percentage of total loans was driven by a sudden, steep decline in the economic forecast attributable to the COVID-19 pandemic and the adoption of CECL.

(g) In 1Q20, the Permanent Mortgage portfolio was combined into Consumer Real Estate portfolio, all prior periods were revised for comparability.

(h) 3Q19 increase in delinquencies as a percentage of total loans was primarily driven by two credits.

20

FHN ASSET QUALITY: REGIONAL BANKING

Quarterly, Unaudited 

																1Q20 Changes vs.
	1Q20			4Q19			3Q19			2Q19			1Q19			4Q19	1Q19
Total Regional Banking (a)
Period-end loans ($ millions)	$	32,591		$	30,213		$	30,345		$	28,711		$	26,898		8%	21%
30+ Delinq. % (c) (d)	0.15		%	0.14		%	0.18		%	0.15		%	0.17		%
NPL % (e)	0.44			0.37			0.39			0.51			0.43
Charge-offs % (qtr. annualized) (f)	0.11			0.08			0.23			0.11			0.09
Allowance / loans % (g)	1.27		%	0.60		%	0.57		%	0.60		%	0.60		%
Allowance / net charge-offs	12.66		x	7.82		x	2.57		x	5.43		x	7.16		x
Key Portfolio Details
C&I (a) (b)
Period-end loans ($ millions)	$	21,798		$	19,721		$	19,962		$	18,710		$	16,812		11%	30%
30+ Delinq. % (c) (d)	0.07		%	0.05		%	0.11		%	0.05		%	0.06		%
NPL % (e)	0.44			0.38			0.37			0.56			0.43
Charge-offs % (qtr. annualized) (f)	0.12			0.07			0.33			0.14			0.06
Allowance / loans % (g)	1.12		%	0.62		%	0.57		%	0.61		%	0.61		%
Allowance / net charge-offs	10.45		x	9.23		x	1.87		x	4.73		x	10.98
Commercial Real Estate (a) (b)
Period-end loans ($ millions)	$	4,608		$	4,292		$	4,172		$	3,787		$	3,867		7%	19%
30+ Delinq. % (c)	0.01		%	0.02		%	0.04		%	0.07		%	0.04		%
NPL %	0.05			0.04			0.05			0.07			0.07
Charge-offs % (qtr. annualized)	—			NM			0.02			0.02			0.04
Allowance / loans % (g)	1.02		%	0.79		%	0.79		%	0.77		%	0.80		%
Allowance / net charge-offs	NM			NM			43.95			34.79			20.16
Consumer Real Estate (a) (h)
Period-end loans ($ millions)	$	5,717		$	5,738		$	5,763		$	5,776		$	5,784		*	(1)%
30+ Delinq. % (c)	0.51		%	0.50		%	0.48		%	0.50		%	0.53		%
NPL % (i)	0.78			0.65			0.74			0.66			0.71
Charge-offs % (qtr. annualized)	NM			NM			NM			NM			0.04
Allowance / loans % (g)	1.80		%	0.23		%	0.26		%	0.25		%	0.26		%
Allowance / net charge-offs	NM			NM			NM			NM			6.20
Credit Card and Other
Period-end loans ($ millions)	$	468		$	462		$	448		$	438		$	435		1%	8%
30+ Delinq. % (c)	0.90		%	0.69		%	0.65		%	0.66		%	0.64		%
NPL %	0.02			0.01			0.01			0.01			0.01
Charge-offs % (qtr. annualized)	2.14			2.32			2.02			1.84			2.10
Allowance / loans % (g)	4.06		%	2.87		%	2.83		%	2.77		%	2.87		%
Allowance / net charge-offs	1.89		x	1.21		x	1.40		x	1.51		x	1.37		x
ASSET QUALITY: CORPORATE
Consumer Real Estate (h)
Period-end loans ($ millions)	$	31		$	31		$	34		$	35		$	38		*	(18)%
30+ Delinq. % (c)	5.39		%	5.29		%	5.00		%	4.03		%	4.54		%
NPL %	4.25			4.22			4.90			4.79			4.49
Charge-offs % (qtr. annualized)	NM			NM			NM			NM			NM
Allowance / loans %	NM			NM			NM			NM			NM
Allowance / net charge-offs	NM			NM			NM			NM			NM

NM - Not meaningful

* Amount is less than one percent.

(a) In 2Q19, the HBF portfolio was retrospectively reclassified through 2Q18 from the Regional Banking segment to the Non-Strategic segment.

(b) In 3Q19, FHN prospectively reclassified approximately $410 million of regional banking market investor CRE loans from the C&I portfolio to the CRE portfolio. The reclassification did not have an impact on FHN’s consolidated balance sheet and the impact to the consolidated financial statements from the effect on the allowance for loan losses was immaterial.

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

(d) 1Q20 increase in delinquencies as a percentage of total loans was primarily driven by two credits; 3Q19 increase in delinquencies as a percentage of total loans was primarily driven by one credit.

(e) 1Q20 increase in NPLs as a percentage of total loans was primarily driven by one credit; 2Q19 increase in NPLs as a percentage of total loans was primarily driven by one credit.

(f) 1Q20 charge-offs as a percentage of total loans was primarily driven by one credit; 3Q19 increase in charge-offs as a percentage of loans was primarily driven by two credits; 2Q19 increase in charge-offs as a percentage of total loans was primarily driven by one credit.

(g) 1Q20 increase in allowance as a percentage of total loans was driven by a sudden, steep decline in the economic forecast attributable to the COVID-19 pandemic and the adoption of CECL.

(h) In 1Q20, the Permanent Mortgage portfolio was combined into Consumer Real Estate portfolio, all prior periods were revised for comparability.

(i) 1Q20 increase in NPL as a percentage of total loans as primarily driven by one credit.

21

FHN ASSET QUALITY: NON-STRATEGIC

Quarterly, Unaudited 

																1Q20 Changes vs.
	1Q20			4Q19			3Q19			2Q19			1Q19			4Q19	1Q19
Total Non-Strategic (a)
Period-end loans ($ millions)	$	756		$	817		$	882		$	967		$	1,054		(7)%	(28)%
30+ Delinq. % (b)	1.56		%	1.72		%	1.67		%	1.42		%	1.63		%
NPL %	6.03			5.83			5.93			5.96			6.06
Charge-offs % (qtr. annualized)	NM			NM			NM			NM			NM
Allowance / loans % (c)	4.09		%	2.15		%	2.14		%	2.27		%	2.27		%
Allowance / net charge-offs	NM			NM			NM			NM			NM
Key Portfolio Details
Commercial (a)
Period-end loans ($ millions)	$	358		$	375		$	388		$	418		$	444		(5)%	(19)%
30+ Delinq. % (b) (d)	0.45		%	—		%	—		%	—		%	0.38		%
NPL %	—			—			0.70			0.66			0.64
Charge-offs % (qtr. annualized)	—			—			—			0.02			NM
Allowance / loans % (c)	2.95		%	0.65		%	0.77		%	1.20		%	1.10		%
Allowance / net charge-offs	NM			NM			NM			56.57			NM
Consumer Real Estate (a) (e)
Period-end loans ($ millions)	$	371		$	407		$	449		$	492		$	540		(9)%	(31)%
30+ Delinq. % (b) (f)	2.56		%	3.10		%	2.91		%	2.30		%	2.26		%
NPL %	12.19			11.63			10.98			11.07			11.26
Charge-offs % (qtr. annualized)	NM			NM			NM			NM			NM
Allowance / loans % (c)	5.40		%	3.71		%	3.54		%	3.42		%	3.51		%
Allowance / net charge-offs	NM			NM			NM			NM			NM
Other Consumer
Period-end loans ($ millions)	$	27		$	35		$	45		$	57		$	70		(23)%	(61)%
30+ Delinq. % (b)	2.60		%	4.05		%	3.78		%	4.21		%	4.61		%
NPL %	0.94			0.85			0.72			0.72			0.56
Charge-offs % (qtr. annualized)	1.82			1.83			2.84			4.41			4.35
Allowance / loans % (c)	1.21		%	0.09		%	0.09		%	0.09		%	0.20		%
Allowance / net charge-offs	0.58		x	0.04		x	0.03		x	0.02			0.04

NM - Not meaningful

(a) In 2Q19, the HBF portfolio was retrospectively reclassifed from Regional Banking segment to the Non-Strategic segment.

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

(c) 1Q20 increase in allowance as a percentage of total loans was driven by a sudden, steep decline in the economic forecast attributable to the COVID-19 pandemic and the adoption of CECL.

(d) 1Q20 increase in delinquencies as a percentage of total loans was primarily driven by one credit

(e) In 1Q20, the Permanent Mortgage portfolio was combined into Consumer Real Estate portfolio, all prior periods were revised for comparability.

(f) 3Q19 increase in delinquencies as a percentage of total loans was primarily drive by two credits.

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FHN NON-GAAP TO GAAP RECONCILIATION

Quarterly, Unaudited

(Dollars and shares in thousands, except per share data)	1Q20			4Q19			3Q19			2Q19			1Q19
Tangible Common Equity (Non-GAAP)
(A) Total equity (GAAP)	$	5,055,580		$	5,076,008		$	4,996,043		$	4,926,081		$	4,846,521
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	$	4,664,525		$	4,684,953		$	4,604,988		$	4,535,026		$	4,455,466
Less: Intangible assets (GAAP) (b)	1,557,679			1,562,987			1,569,193			1,575,399			1,581,605
(C) Tangible common equity (Non-GAAP)	$	3,106,846		$	3,121,966		$	3,035,795		$	2,959,627		$	2,873,861
Tangible Assets (Non-GAAP)
(D) Total assets (GAAP)	$	47,197,378		$	43,310,900		$	43,717,684		$	42,171,770		$	41,099,003
Less: Intangible assets (GAAP) (b)	1,557,679			1,562,987			1,569,193			1,575,399			1,581,605
(E) Tangible assets (Non-GAAP)	$	45,639,699		$	41,747,913		$	42,148,491		$	40,596,371		$	39,517,398
Average Tangible Common Equity (Non-GAAP)
(F) Average total equity (GAAP)	$	5,002,394		$	5,039,868		$	4,962,341		$	4,869,161		$	4,809,235
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	$	4,611,339		$	4,648,813		$	4,571,286		$	4,478,106		$	4,418,180
Less: Average intangible assets (GAAP) (b)	1,560,340			1,566,079			1,572,312			1,578,505			1,584,694
(H) Average tangible common equity (Non-GAAP)	$	3,050,999		$	3,082,734		$	2,998,974		$	2,899,601		$	2,833,486
Annualized Net Income/(loss) Available to Common Shareholders
(I) Net income /(loss) available to common shareholders (annualized) (GAAP)	$	48,545		$	463,483		$	434,469		$	438,562		$	401,642
Period-end Shares Outstanding
(J) Period-end shares outstanding	311,863			311,469			311,180			312,478			315,361
Ratios
(I)/(G) Return on average common equity (“ROCE”) (GAAP)	1.05		%	9.97		%	9.50		%	9.79		%	9.09		%
(I)/(H) Return on average tangible common equity (“ROTCE”) (Non-GAAP)	1.59		%	15.03		%	14.49		%	15.12		%	14.17		%
(A)/(D) Total equity to total assets (GAAP)	10.71		%	11.72		%	11.43		%	11.68		%	11.79		%
(C)/(E) Tangible common equity to tangible assets (“TCE/TA”) (Non-GAAP)	6.81		%	7.48		%	7.20		%	7.29		%	7.27		%
(B)/(J) Book value per common share (GAAP)	$	14.96		$	15.04		$	14.80		$	14.51		$	14.13
(C)/(J) Tangible book value per common share (Non-GAAP)	$	9.96		$	10.02		$	9.76		$	9.47		$	9.11

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

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

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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.

Current Expected Credit Loss (“CECL”): New accounting standard that focuses on estimation of expected losses over the life of the loans which is measured by the difference between amortized cost and the net amount expected to be collected.

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.

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.

Paycheck Protection Program (“PPP”): The Paycheck Protection Program is a loan designed to provide direct incentive for small businesses to keep their workers on the payroll. Loans guaranteed under the PPP will be 100 percent guaranteed by the Small Business Administration ("SBA"), and the full principal amount of the loans may qualify for loan forgiveness if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.

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.

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