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

1

SECOND QUARTER 2020

FINANCIAL SUPPLEMENT

If you need additional information, please contact:

Ellen Taylor, Investor Relations    Aarti Bowman, Investor Relations    

(901) 523-4450            (901) 523-4017    

etaylor@firsthorizon.comaagoorha@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

Forward-Looking Statements

This communication may contain forward-looking information, including guidance, involving significant risks and uncertainties. Forward-looking information is identified by words such as "believe," "expect," "anticipate," "intend," "estimate," "should," "is likely," "will," "going forward," and other expressions that indicate future events and trends and may be followed by or reference cautionary statements. A number of factors could cause actual results to differ materially from results stated in or suggested by 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; ability to execute business plans; regional, national, and world-wide political developments; recent and future legislative and regulatory developments; inflation or deflation; market (particularly real estate market) and monetary fluctuations; pestilence; man-made or natural disasters; customer, investor and regulatory responses to any of those conditions or events; matters mentioned in this release; critical accounting estimates; FHN’s success in executing its business plans and strategies following its 2020 merger with IBERIABANK Corporation, and managing the risks involved; 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 other factors described in FHN's annual report on Form 10-K, FHN’s other recent filings with the SEC, and FHN’s most recent earnings release and related materials. FHN disclaims any obligation to update any forward-looking statements to reflect future events or developments, or changes in expectations.

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; and 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.

The non-GAAP measures presented in this financial supplement are pre-provision net revenue ("PPNR"), 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 On July 1, 2020, FHN closed its merger of equals with IBERIABANK Corporation ("IBKC"). At June 30, 2020, IBKC remained a separate company. Accordingly, information in this Financial Supplement does not reflect the substantial impacts of that closing on FHN's financial condition, operations, and capital. At June 30, 2020 IBKC had $34.7 billion of total assets, $26.1 billion in loans, and $28.3 billion in deposits and operated over 300 offices in 12 states, primarily in the southern and southeastern U.S.
l Acquisition of 30 branches from Truist Financial Corporation divestiture on track to close July 17, 2020.
l Solid Capital with CET1 ratio of 9.3% and Total Capital of 12.5%.
l FHN issued $800 million of senior notes and $150 million of Series E preferred stock in 2Q20.
l First Horizon Bank issued $450 million of subordinated notes in 2Q20.
l Recent changes to the economic forecast and continuing uncertainty associated with the COVID-19 pandemic resulted in provision expense of $110.0 million in 2Q20.
l FHN remains committed to ensuring the health and safety of employees and customers in this challenging environment.
l Total Paycheck Protection Program ("PPP") originations of $2.1 billion.
l Continued prudent risk management with enhanced focus on credit oversight.
l Ongoing support to employees and community.
Summary of Second Quarter 2020 Notable Items
Segment	Item	Income Statement	Amount Favorable/ (Unfavorable)	Comments
Corporate	Acquisition expenses	Noninterest expense: various	$(14.3) million	Pre-tax acquisition-related expenses largely associated with the IBKC merger of equals and pending branch acquisition
Second Quarter 2020 vs. First Quarter 2020

Consolidated								l Diluted EPS of $.17 in 2Q20, up from $.04 in 1Q20, driven by revenue growth and lower loan loss provision expense lPPNR up 8% to $179.4 million in 2Q20 from $166.2 million in 1Q20 l Total revenue up 7% l Fee income up 18% primarily driven by higher fixed income revenue and deferred compensation income l NII up from average loan growth tied to loans to mortgage companies and PPP and deposit pricing discipline, partially offset by the negative impact of interest rates on loans (LIBOR) l NIM of 2.90% in 2Q20 compared to 3.16% in 1Q20; decrease primarily due to a decline in LIBOR and excess cash positions, somewhat mitigated by deposit pricing discipline and the impact of PPP lLoan loss provision of $110 million in 2Q20, down from $145 million in 1Q20; reflects increased reserves primarily driven by recent changes to the economic forecast attributable to the COVID-19 pandemic lExpenses up 7% primarily due to higher deferred compensation expense and acquisition-related costs, somewhat offset by lower advertising and travel and entertainment expenses lStrong period-end deposit growth; period-end loans down 2%
(Thousands, except per share data)	2Q20		1Q20		Change
Income Statement
Net interest income	$	305,344	$	302,802	1		%
Noninterest income	206,269		174,756		18		%
Total revenues	511,613		477,558		7		%
Provision for loan losses	110,000		145,000		(24	)	%
Noninterest expense	332,168		311,319		7		%
Income before income taxes	69,445		21,239		NM
Provision for income taxes	12,780		4,767		NM
Net income/(loss)	$	56,665	$	16,472	NM
PPNR (a)	$	179,445	$	166,239	8		%
Diluted EPS	$	0.17	$	0.04	NM
Balance Sheet (millions)
Period-end Loans	$	32,709	$	33,378	(2	)	%
Period-end Deposits	$	37,759	$	34,420	10		%
Average Loans	$	33,968	$	30,524	11		%
Average Deposits	$	37,526	$	32,882	14		%
NM - Not Meaningful
(a) This non-GAAP measure is reconciled to pre-tax income ("PTI") (GAAP) in the Non-GAAP to GAAP reconciliation on page 23 of this financial supplement.

4

FHN PERFORMANCE HIGHLIGHTS (continued)

Second Quarter 2020 vs. First Quarter 2020 (continued)

Regional Banking								lStrong average loan growth l Loan growth due to increases in loans to mortgage companies and PPP lending l NII up 17% from 1Q20 driven by higher average loan balances and wider loan spreads with offset in Corporate l    Provision expense primarily driven by the economic forecast l    Fee income negatively impacted by the COVID-19 pandemic in 2Q20, resulting in lower NSF fee income, fees from derivative sales, brokerage fees, and bankcard income, somewhat offset by a $4.6 million debit card incentive payment l    Expense decrease largely driven by lower personnel and advertising and public relations expense, higher deferred loan origination costs, and lower travel and entertainment expenses, somewhat offset by an increase in the credit expense on unfunded commitments l    Efficiency ratio improved to 47% in 2Q20
(Thousands)	2Q20		1Q20		Change
Net interest income	$	349,749	$	300,187	17		%
Noninterest income	79,312		81,896		(3	)	%
Total revenues	429,061		382,083		12		%
Provision for loan losses	108,311		145,441		(26	)	%
Noninterest expense	202,297		211,034		(4	)	%
Income before income taxes	$	118,453	$	25,608	NM
PPNR (a)	226,764		171,049		33		%
Balance Sheet (millions)
Period-end Loans	$	31,885	$	32,502	(2	)	%
Period-end Deposits	$	34,401	$	30,731	12		%
Average loans	$	33,115	$	29,615	12		%
Average deposits	$	33,792	$	30,582	10		%
NM - Not meaningful
* Amount is less than one percent.
(a) This non-GAAP measure is reconciled to pre-tax income ("PTI") (GAAP) in the Non-GAAP to GAAP reconciliation on page 23 of this financial supplement.

Fixed Income							l2Q20 ADR up 26% to $1.6 million, compared to $1.3 million in 1Q20 l Levels were favorably impacted by low rates, market volatility and increased depository liquidity l NII up $2.6 million; Other product revenue down $4.4 million primarily driven by lower fees from derivative sales and loan transaction revenues which were negatively impacted by COVID-19 l Expense increase driven by increased variable compensation
(Thousands)	2Q20		1Q20		Change
Net interest income	$	13,545	$	10,914	24	%
Noninterest income	113,235		95,723		18	%
Total revenues	126,780		106,637		19	%
Noninterest expense	83,039		81,063		2	%
Income before income taxes	$	43,741	$	25,574	71	%
Fixed income product ADR	$	1,592	$	1,264	26	%

Corporate								l    NII negatively impacted by funds transfer pricing methodology with offset in Regional Banking l    Increase in fee income driven by deferred compensation income; 1Q20 included negative deferred compensation income driven by equity market valuation declines l    Deferred compensation net impact of $2.1 million; $17.7 million increase in fee income, more than offset by a $19.8 million increase in expense l    Expense increase also driven by higher acquisition-related expenses relative to 1Q20
(Thousands)	2Q20			1Q20			Change
Net interest income	$	(63,493	)	$	(13,359	)	NM
Noninterest income	12,943			(3,718		)	NM
Total revenues	(50,550		)	(17,077		)	NM
Noninterest expense	43,218			15,449			NM
Income before income taxes	$	(93,768	)	$	(32,526	)	NM
NM - Not meaningful

5

FHN PERFORMANCE HIGHLIGHTS (continued)

Second Quarter 2020 vs. First Quarter 2020 (continued)

Non-Strategic									l  Non-Strategic results reflect continuing wind-down of the loan portfolio
(Thousands)	2Q20		1Q20			Change
Net interest income	$	5,543	$	5,060		10		%
Noninterest income	779		855			(9	)	%
Total revenues	6,322		5,915			7		%
Provision for loan losses	1,689		(441		)	NM
Noninterest expense	3,614		3,773			(4	)	%
Income before income taxes	$	1,019	$	2,583		(61	)	%
Balance Sheet
Average loans	$	723	$	779		(7	)	%

Asset Quality								l    Increase in reserves primarily driven by recent changes to the economic forecast attributable to the COVID-19 pandemic l  Commercial up $73.9 million; Consumer up $19.5 million l    Increase in net charge-offs primarily driven by two commercial credits l    NPLs increased $36.2 million primarily driven by two commercial credits l    Decrease in 30+ delinquencies driven by several credits within the C&I and Consumer Real Estate portfolios that returned to current in 2Q20
(Thousands)	2Q20		1Q20		Change
Allowance for loan losses	$537,881		$444,490		21		%
Allowance / loans %	1.64	%	1.33	%
Net Charge-offs	$16,609		$7,211		NM
Net charge-offs %	0.20	%	0.10	%
Nonperforming Loans (a)	$225,991		$189,813		19		%
NPL %	0.69	%	0.57	%
30+ delinquencies	$41,654		$62,642		(34	)	%
30+ delinquencies %	0.13	%	0.19	%
NM - Not meaningful
(a) Excludes loans held-for-sale.

Capital and Liquidity								lDeclared quarterly dividend of $.15 in 2Q20 and 1Q20  l No share repurchases in 2Q20 and 1Q20 l In 2Q20 FHN issued $800 million of senior notes and $150 million of Series E preferred stock; First Horizon Bank issued $450 million of subordinated notes l 2Q20 and 1Q20 include 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
(millions)	2Q20			1Q20			Change
Common dividends declared (a)	$	46.8		$	46.7		*
Preferred dividends declared	$	1.6		$	1.6		*
Share repurchases	$	—		$	—		NM
Capital Ratios (b)
Common Equity Tier 1	9.26		%	8.54		%
Tier 1	10.69		%	9.52		%
Total Capital	12.48		%	10.78		%
Leverage	8.56		%	9.00		%
NM - Not meaningful
* Amount is less than one percent.
(a) 2Q20 common dividends paid July 1, 2020; 1Q20 common dividends paid April 1, 2020.
(b) Current quarter is an estimate.

6

FHN CONSOLIDATED INCOME STATEMENT

Quarterly, Unaudited

																2Q20 Changes vs.
(Dollars in thousands, except per share data)	2Q20			1Q20			4Q19			3Q19			2Q19			1Q20			2Q19
Interest income	$	346,624		$	378,368		$	404,142		$	407,494		$	412,089		(8	)	%	(16	)	%
Less: interest expense	41,280			75,566			92,749			106,818			108,479			(45	)	%	(62	)	%
Net interest income	305,344			302,802			311,393			300,676			303,610			1		%	1		%
Provision/(provision credit) for loan losses (a)	110,000			145,000			10,000			15,000			13,000			(24	)	%	NM
Net interest income after provision for loan losses	195,344			157,802			301,393			285,676			290,610			24		%	(33	)	%
Noninterest income:
Fixed income	112,421			95,635			80,981			77,645			66,414			18		%	69		%
Deposit transactions and cash management (b)	30,787			30,290			33,289			34,379			32,374			2		%	(5	)	%
Brokerage, management fees and commissions	13,800			15,405			14,557			14,157			14,120			(10	)	%	(2	)	%
Trust services and investment management	7,733			7,195			7,434			7,163			7,888			7		%	(2	)	%
Bankcard income	6,652			7,253			7,984			7,017			6,355			(8	)	%	5		%
Bank-owned life insurance	6,380			4,589			5,255			4,427			5,126			39		%	24		%
Securities gains/(losses), net	(1,493		)	25			(3		)	97			49			NM			NM
Other (c)	29,989			14,364			33,810			26,850			25,667			NM			17		%
Total noninterest income	206,269			174,756			183,307			171,735			157,993			18		%	31		%
Adjusted gross income after provision for loan losses	401,613			332,558			484,700			457,411			448,603			21		%	(10	)	%
Noninterest expense:
Employee compensation, incentives, and benefits (d) (e)	200,259			183,470			178,761			167,022			171,643			9		%	17		%
Legal fees (e)	2,498			1,823			2,709			4,854			6,486			37		%	(61	)	%
Professional fees (e)	10,310			6,996			16,718			14,910			11,291			47		%	(9	)	%
Occupancy (e)	21,445			19,563			19,972			18,887			20,719			10		%	4		%
Computer software	16,522			16,027			15,390			15,191			15,001			3		%	10		%
Contract employment and outsourcing	5,236			4,936			3,160			3,256			3,078			6		%	70		%
Operations services	11,654			11,692			11,171			11,634			11,713			*			(1	)	%
Equipment rentals, depreciation, and maintenance	8,384			8,552			8,597			8,197			8,375			(2	)	%	*
FDIC premium expense	6,432			6,742			5,806			5,564			4,247			(5	)	%	51		%
Advertising and public relations (e) (f)	2,525			7,456			14,897			6,646			5,574			(66	)	%	(55	)	%
Communications and courier	5,868			5,528			5,597			5,650			7,380			6		%	(20	)	%
Amortization of intangible assets	5,284			5,308			6,206			6,206			6,206			*			(15	)	%
Other (c)	35,751			33,226			38,463			39,655			28,681			8		%	25		%
Total noninterest expense	332,168			311,319			327,447			307,672			300,394			7		%	11		%
Income before income taxes	69,445			21,239			157,253			149,739			148,209			NM			(53	)	%
Provision for income taxes	12,780			4,767			35,970			35,796			34,467			NM			(63	)	%
Net income/(loss)	56,665			16,472			121,283			113,943			113,742			NM			(50	)	%
Net income attributable to noncontrolling interest	2,851			2,852			2,910			2,883			2,852			*			*
Net income/(loss) attributable to controlling interest	53,814			13,620			118,373			111,060			110,890			NM			(51	)	%
Preferred stock dividends	1,550			1,550			1,550			1,550			1,550			*			*
Net income/(loss) available to common shareholders	$	52,264		$	12,070		$	116,823		$	109,510		$	109,340		NM			(52	)	%
Common Stock Data
EPS	$	0.17		$	0.04		$	0.38		$	0.35		$	0.35		NM			(51	)	%
Basic shares (thousands)	312,090			311,597			311,250			311,888			314,063			*			(1	)	%
Diluted EPS	$	0.17		$	0.04		$	0.37		$	0.35		$	0.35		NM			(51	)	%
Diluted shares (thousands)	312,936			313,170			313,353			313,805			315,786			*			(1	)	%
Key Ratios & Other
Return on average assets (annualized) (g)	0.48		%	0.15		%	1.12		%	1.08		%	1.11		%
Return on average common equity (“ROCE”) (annualized) (g)	4.50		%	1.05		%	9.97		%	9.50		%	9.79		%
Return on average tangible common equity (“ROTCE”) (annualized) (g) (h)	6.74		%	1.59		%	15.03		%	14.49		%	15.12		%
Fee income to total revenue (g)	40.49		%	36.59		%	37.05		%	36.34		%	34.22		%
Efficiency ratio (g)	64.74		%	65.19		%	66.19		%	65.14		%	65.08		%
Average full time equivalent employees	5,006			4,969			5,005			5,116			5,287
Pre-Provision Net Revenue (PPNR) (i)	$	179,445		$	166,239		$	167,253		$	164,739		$	161,209		8		%	11		%

NM - Not meaningful

* Amount is less than one percent.

(a) 2Q20 and 1Q20 increases in provision expense primarily driven by the economic forecast attributable to the COVID-19 pandemic.

(b) 2Q20 includes a $4.6 million debit card incentive payment.

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

(d) 2Q20 and 1Q20 include $9.3 million and $(10.3) million, respectively, of deferred compensation expense.

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

(f) 4Q19 includes $6.4 million of costs related to rebranding.

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

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

(i) This non-GAAP measure is reconciled to pre-tax income ("PTI") (GAAP) in the Non-GAAP to GAAP reconciliation on page 23 of this financial supplement.

7

FHN OTHER INCOME AND OTHER EXPENSE

Quarterly, Unaudited

															2Q20 Changes vs.
(Thousands)	2Q20		1Q20			4Q19			3Q19			2Q19			1Q20			2Q19
Other Income
ATM and interchange fees	$	4,009	$	4,212		$	4,529		$	4,507		$	4,262		(5	)	%	(6	)	%
Dividend income	1,057		1,130			1,508			1,556			1,809			(6	)	%	(42	)	%
Electronic banking fees	1,182		1,030			1,101			1,288			1,267			15		%	(7	)	%
Letter of credit fees	1,559		1,462			1,561			1,400			1,253			7		%	24		%
Mortgage banking	4,138		2,431			3,578			2,019			2,572			70		%	61		%
Deferred compensation (a)	8,171		(9,507		)	3,339			472			1,938			NM			NM
Insurance commissions	401		789			358			577			566			(49	)	%	(29	)	%
Other service charges	4,582		5,219			5,755			5,738			5,624			(12	)	%	(19	)	%
Gain/(loss) on extinguishment of debt	—		—			65			(6		)	—			NM			NM
Other (b)	4,890		7,598			12,016			9,299			6,376			(36	)	%	(23	)	%
Total	$	29,989	$	14,364		$	33,810		$	26,850		$	25,667		NM			17		%
Other Expense
Litigation and regulatory matters	$	3	$	13		$	(394	)	$	11,534		$	(8,230	)	(77	)	%	NM
Tax credit investments	426		346			460			407			267			23		%	60		%
Travel and entertainment	474		2,709			3,652			2,849			2,906			(83	)	%	(84	)	%
Employee training and dues	654		1,341			1,430			1,003			1,251			(51	)	%	(48	)	%
Customer relations (c)	632		2,004			2,794			3,165			1,540			(68	)	%	(59	)	%
Miscellaneous loan costs	2,356		1,094			1,227			1,017			857			NM			NM
Supplies	1,933		2,411			2,104			1,668			1,342			(20	)	%	44		%
OREO	437		(184		)	1,478			342			25			NM			NM
Other insurance and taxes	2,599		2,679			2,515			2,475			2,495			(3	)	%	4		%
Non-service components of net periodic pension and post retirement cost	2,961		2,508			327			986			559			18		%	NM
Credit expense on unfunded commitments (d)	11,158		9,230			(790		)	(634		)	(489		)	21		%	NM
Other (e)	12,118		9,075			23,660			14,843			26,158			34		%	(54	)	%
Total	$	35,751	$	33,226		$	38,463		$	39,655		$	28,681		8		%	25		%

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; 1Q20 decrease driven by equity market valuations.

(b) 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.

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

(d) 2Q20 and 1Q20 increases largely driven by 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; 2Q19 includes $7.4 million of costs primarily associated with fixed asset impairments and technology-related expenses related to rebranding; Refer to the Acquisition and Restructuring expense tables on page 9 for additional information about variability in quarterly balances.

8

ACQUISITION EXPENSE

Quarterly, Unaudited

							2Q20 Changes vs.
IBKC ACQUISITION EXPENSE	2Q20		1Q20		4Q19		1Q20
(Thousands)
Legal and professional fees (a)	$	3,748	$	662	$	8,228	NM
Employee compensation, incentives, and benefits (b)	4,705		689		3,079		NM
Miscellaneous expense (e)	1,003		254		64		NM
Total IBKC acquisition expense	$	9,456	$	1,605	$	11,371	NM

															2Q20 Changes vs.
OTHER ACQUISITION EXPENSE	2Q20			1Q20			4Q19			3Q19			2Q19		1Q20			2Q19
(Thousands)
Legal and professional fees (a)	$	1,327		$	799		$	1,494		$	3,507		$	4,478	66		%	(70	)	%
Employee compensation, incentives, and benefits (b)	87			396			1,035			1,473			1,472		(78	)	%	(94	)	%
Occupancy (c)	(82		)	(25		)	(94		)	(76		)	1,505		NM			NM
Contract employment and outsourcing (d)	420			306			35			223			17		37		%	NM
Miscellaneous expense (e)	503			822			217			1,022			79		(39	)	%	NM
All other expense (f)	2,610			1,874			1,638			2,840			1,096		39		%	NM
Total other acquisition expense	$	4,865		$	4,172		$	4,325		$	8,989		$	8,647	17		%	(44	)	%

NM - Not meaningful

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

(b) Primarily comprised of severance and retention.

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

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

(e) Consists of expenses 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

											2Q20 Changes vs.
	2Q20		1Q20			4Q19			3Q19	2Q19	1Q20			2Q19
(Thousands)
Legal and professional fees	$	7	$	7		$	989		$6,488	$4,242	*			NM
Employee compensation, incentives, and benefits	32		57			259			1,182	2,557	(44	)	%	(99	)	%
Occupancy	—		2			57			(128)	72	NM			NM
All other expense (a)	1		(103		)	(148		)	300	11,797	NM			NM
Total restructuring expense	$	40	$	(37	)	$	1,157		$7,842	$18,668	NM			NM

NM - Not meaningful

*Amount is less than one percent.

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

9

FHN CONSOLIDATED PERIOD-END BALANCE SHEET

Quarterly, Unaudited 

																2Q20 Changes vs.
(Thousands)	2Q20			1Q20			4Q19			3Q19			2Q19			1Q20			2Q19
Assets:
Investment securities	$	5,486,156		$	4,554,907		$	4,455,403		$	4,425,845		$	4,425,609		20		%	24		%
Loans held-for-sale (a)	745,655			595,601			593,790			554,843			447,106			25		%	67		%
Loans, net of unearned income	32,708,937			33,378,303			31,061,111			31,260,833			29,712,810			(2	)	%	10		%
Federal funds sold	113,000			30,050			46,536			48,747			50,705			NM			NM
Securities purchased under agreements to resell	302,267			562,435			586,629			697,214			602,919			(46	)	%	(50	)	%
Interest-bearing cash (b)	3,135,844			670,525			482,405			364,412			593,180			NM			NM
Trading securities	1,116,450			1,877,514			1,346,207			1,395,043			1,668,942			(41	)	%	(33	)	%
Total earning assets	43,608,309			41,669,335			38,572,081			38,746,937			37,501,271			5		%	16		%
Cash and due from banks	604,280			537,564			633,728			749,719			596,081			12		%	1		%
Fixed income receivables (c)	145,455			180,569			40,114			209,732			147,574			(19	)	%	(1	)	%
Goodwill	1,432,787			1,432,787			1,432,787			1,432,787			1,432,787			*			*
Other intangible assets, net	119,608			124,892			130,200			136,406			142,612			(4	)	%	(16	)	%
Premises and equipment, net	448,028			447,812			455,006			451,600			454,271			*			(1	)	%
Other real estate owned ("OREO")	15,134			15,837			17,838			20,181			19,286			(4	)	%	(22	)	%
Allowance for loan losses (d)	(537,881		)	(444,490		)	(200,307		)	(193,149		)	(192,749		)	21		%	NM
Derivative assets	599,704			696,250			183,115			250,786			185,521			(14	)	%	NM
Other assets	2,209,235			2,536,822			2,046,338			1,912,685			1,885,116			(13	)	%	17		%
Total assets	$	48,644,659		$	47,197,378		$	43,310,900		$	43,717,684		$	42,171,770		3		%	15		%
Liabilities and Equity:
Deposits:
Consumer interest	$	14,323,445		$	13,813,999		$	13,866,920		$	13,670,204		$	13,705,969		4		%	5		%
Commercial interest	6,065,840			5,867,755			6,153,075			6,211,539			6,660,056			3		%	(9	)	%
Market-indexed (e)	5,582,248			5,798,088			3,980,589			3,794,105			3,855,545			(4	)	%	45		%
Total interest-bearing deposits	25,971,533			25,479,842			24,000,584			23,675,848			24,221,570			2		%	7		%
Noninterest-bearing deposits	11,787,818			8,939,808			8,428,951			8,268,812			8,086,748			32		%	46		%
Total deposits	37,759,351			34,419,650			32,429,535			31,944,660			32,308,318			10		%	17		%
Federal funds purchased	778,529			476,013			548,344			936,837			666,007			64		%	17		%
Securities sold under agreements to repurchase	1,482,585			788,595			716,925			735,226			764,308			88		%	94		%
Trading liabilities	232,742			452,611			505,581			719,777			558,347			(49	)	%	(58	)	%
Other short-term borrowings (f)	130,583			4,060,673			2,253,045			2,276,139			865,347			(97	)	%	(85	)	%
Term borrowings (g)	2,032,476			792,751			791,368			1,195,096			1,186,646			NM			71		%
Fixed income payables (c)	24,735			91,274			49,535			66,842			66,369			(73	)	%	(63	)	%
Derivative liabilities	94,389			234,984			67,480			83,530			88,485			(60	)	%	7		%
Other liabilities	900,884			825,247			873,079			763,534			741,862			9		%	21		%
Total liabilities	43,436,274			42,141,798			38,234,892			38,721,641			37,245,689			3		%	17		%
Equity:
Common stock	195,224			194,914			194,668			194,487			195,299			*			*
Capital surplus	2,940,610			2,938,670			2,931,451			2,925,309			2,941,696			*			*
Undivided profits (h)	1,671,629			1,667,105			1,798,442			1,725,846			1,660,520			*			1		%
Accumulated other comprehensive loss, net	(134,798		)	(136,164		)	(239,608		)	(240,654		)	(262,489		)	(1	)	%	(49	)	%
Preferred stock (i)	240,289			95,624			95,624			95,624			95,624			NM			NM
Noncontrolling interest (j)	295,431			295,431			295,431			295,431			295,431			*			*
Total equity	5,208,385			5,055,580			5,076,008			4,996,043			4,926,081			3		%	6		%
Total liabilities and equity	$	48,644,659		$	47,197,378		$	43,310,900		$	43,717,684		$	42,171,770		3		%	15		%

NM - Not meaningful

*Amount is less than one percent.

(a) 2Q20 includes $644.2 million of SBA and USDA loans, $96.7 million of mortgage loans, and $4.8 million of other consumer loans.

(b) Includes excess balances held at Fed; 2Q20 increase driven by an influx of deposits.

(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 $106.4 million in 1Q20; 2Q20 and 1Q20 increases reflect increased reserves established in association with 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 2Q20 FHN issued $800 million of senior notes and First Horizon Bank issued $450 million of subordinated notes; 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) In 2Q20 FHN issued $150 million of Non-Cumulative Perpetual Preferred Stock, Series E.

(j) Consists of preferred stock of subsidiaries.

10

FHN CONSOLIDATED AVERAGE BALANCE SHEET

Quarterly, Unaudited 

																2Q20 Changes vs.
(Thousands)	2Q20			1Q20			4Q19			3Q19			2Q19			1Q20			2Q19
Assets:
Earning assets:
Loans, net of unearned income:
Commercial, financial, and industrial (C&I) (a)	$	22,694,432		$	19,469,572		$	19,739,937		$	18,965,829		$	17,952,866		17		%	26		%
Commercial real estate (a)	4,709,676			4,421,913			4,263,597			4,269,425			3,910,466			7		%	20		%
Consumer real estate	6,087,485			6,134,390			6,194,134			6,283,488			6,310,039			(1	)	%	(4	)	%
Credit card and other	476,088			498,290			508,651			497,646			498,790			(4	)	%	(5	)	%
Total loans, net of unearned income (b)	33,967,681			30,524,165			30,706,319			30,016,388			28,672,161			11		%	18		%
Loans held-for-sale (c)	731,315			590,458			581,810			455,239			606,685			24		%	21		%
Investment securities:
U.S. treasuries	88,007			100			100			100			99			NM			NM
U.S. government agencies	4,295,823			4,330,905			4,327,651			4,289,719			4,461,712			(1	)	%	(4	)	%
States and municipalities	84,142			64,668			54,146			49,025			41,911			30		%	NM
Corporate bonds	50,541			50,570			50,493			50,414			64,720			*			(22	)	%
Other	22,787			20,409			15,933			18,837			14,609			12		%	56		%
Total investment securities	4,541,300			4,466,652			4,448,323			4,408,095			4,583,051			2		%	(1	)	%
Trading securities	1,419,868			1,831,492			1,263,633			1,391,405			1,564,201			(22	)	%	(9	)	%
Other earning assets:
Federal funds sold	28,208			10,192			9,700			21,225			47,664			NM			(41	)	%
Securities purchased under agreements to resell	393,539			816,794			645,979			550,641			593,412			(52	)	%	(34	)	%
Interest-bearing cash (d)	1,619,686			548,036			586,495			545,784			648,927			NM			NM
Total other earning assets	2,041,433			1,375,022			1,242,174			1,117,650			1,290,003			48		%	58		%
Total earning assets	42,701,597			38,787,789			38,242,259			37,388,777			36,716,101			10		%	16		%
Allowance for loan losses (e)	(475,606		)	(353,794		)	(195,863		)	(196,586		)	(188,243		)	34		%	NM
Cash and due from banks	561,864			609,701			609,750			596,323			590,622			(8	)	%	(5	)	%
Fixed income receivables	124,451			111,474			75,917			75,938			64,958			12		%	92		%
Premises and equipment, net	451,572			450,931			450,950			451,567			478,607			*			(6	)	%
Derivative assets	532,890			254,736			202,624			160,341			83,050			NM			NM
Other assets	4,037,306			3,691,075			3,500,153			3,464,541			3,497,912			9		%	15		%
Total assets	$	47,934,074		$	43,551,912		$	42,885,790		$	41,940,901		$	41,243,007		10		%	16		%
Liabilities and equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Consumer interest	$	14,153,186		$	13,760,968		$	13,718,820		$	13,670,745		$	13,597,195		3		%	4		%
Commercial interest	6,002,315			6,006,364			6,145,681			6,321,835			6,599,793			*			(9	)	%
Market-indexed (f)	6,055,468			4,448,587			4,370,025			4,143,012			3,818,949			36		%	59		%
Total interest-bearing deposits	26,210,969			24,215,919			24,234,526			24,135,592			24,015,937			8		%	9		%
Federal funds purchased	1,037,107			746,686			1,163,701			886,445			519,497			39		%	NM
Securities sold under agreements to repurchase	1,011,339			777,692			701,213			722,815			691,490			30		%	46		%
Trading liabilities	352,433			750,520			585,889			501,203			548,653			(53	)	%	(36	)	%
Other short-term borrowings (g)	555,032			1,686,690			844,558			535,585			650,387			(67	)	%	(15	)	%
Term borrowings (h)	1,426,261			791,043			928,214			1,185,853			1,183,205			80		%	21		%
Total interest-bearing liabilities	30,593,141			28,968,550			28,458,101			27,967,493			27,609,169			6		%	11		%
Noninterest-bearing deposits	11,315,526			8,666,087			8,542,521			8,235,806			7,947,607			31		%	42		%
Fixed income payables	25,899			54,900			34,510			33,059			25,579			(53	)	%	1		%
Derivative liabilities	63,966			16,171			59,114			19,632			61,715			NM			4		%
Other liabilities	817,929			843,810			751,676			722,570			729,776			(3	)	%	12		%
Total liabilities	42,816,461			38,549,518			37,845,922			36,978,560			36,373,846			11		%	18		%
Equity:
Common stock	195,097			194,827			194,574			194,930			196,319			*			(1	)	%
Capital surplus	2,940,736			2,935,372			2,928,463			2,934,276			2,964,824			*			(1	)	%
Undivided profits (i)	1,672,072			1,686,986			1,766,211			1,695,417			1,629,474			(1	)	%	3		%
Accumulated other comprehensive loss, net	(135,398		)	(205,846		)	(240,435		)	(253,337		)	(312,511		)	(34	)	%	57		%
Preferred stock (j)	149,675			95,624			95,624			95,624			95,624			57		%	57		%
Noncontrolling interest (k)	295,431			295,431			295,431			295,431			295,431			*			*
Total equity	5,117,613			5,002,394			5,039,868			4,962,341			4,869,161			2		%	5		%
Total liabilities and equity	$	47,934,074		$	43,551,912		$	42,885,790		$	41,940,901		$	41,243,007		10		%	16		%

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) Includes loans on nonaccrual status.

(c) 2Q20 includes $631.2 million of SBA and USDA loans, $95.3 million of mortgage loans, and $4.9 million of other consumer loans.

(d) Includes excess balances held at Fed; 2Q20 increase driven by an influx of deposits.

(e) 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 $106.4 million; 2Q20 and 1Q20 increases reflect increased reserves established in association with the economic forecast attributable to the COVID-19 pandemic.

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

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

(h) In 2Q20 FHN issued $800 million of senior notes and First Horizon Bank issued $450 million of subordinated notes; In 4Q19 $400 million of First Horizon Bank senior capital notes matured.

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

(j) In 2Q20 FHN issued $150 million of Non-Cumulative Perpetual Preferred Stock, Series E.

(k) Consists of preferred stock of subsidiaries.

11

FHN CONSOLIDATED NET INTEREST INCOME (a)

Quarterly, Unaudited 

																2Q20 Changes vs.
(Thousands)	2Q20			1Q20			4Q19			3Q19			2Q19			1Q20			2Q19
Interest Income:
Loans, net of unearned income (b)	$	308,184		$	328,526		$	356,176		$	357,724		$	354,067		(6	)	%	(13	)	%
Loans held-for-sale	6,596			6,899			7,053			6,069			8,128			(4	)	%	(19	)	%
Investment securities:
U.S. government agencies	22,021			25,127			26,500			26,322			29,075			(12	)	%	(24	)	%
States and municipalities	733			542			478			431			347			35		%	NM
Corporate bonds	595			591			595			593			713			1		%	(17	)	%
U.S. treasuries	26			—			—			—			—			NM			NM
Other	1,904			1,732			1,352			1,634			1,278			10		%	49		%
Total investment securities	25,279			27,992			28,925			28,980			31,413			(10	)	%	(20	)	%
Trading securities	8,815			13,338			9,507			10,645			13,332			(34	)	%	(34	)	%
Other earning assets:
Federal funds sold	15			27			51			141			326			(44	)	%	(95	)	%
Securities purchased under agreements to resell (c)	(82		)	2,303			2,467			2,800			3,301			NM			NM
Interest-bearing cash	350			1,536			2,359			2,700			3,689			(77	)	%	(91	)	%
Total other earning assets	283			3,866			4,877			5,641			7,316			(93	)	%	(96	)	%
Interest income	$	349,157		$	380,621		$	406,538		$	409,059		$	414,256		(8	)	%	(16	)	%
Interest Expense:
Interest-bearing deposits:
Consumer interest	$	10,197		$	18,337		$	22,957		$	26,670		$	25,666		(44	)	%	(60	)	%
Commercial interest	9,041			19,061			24,366			28,112			29,927			(53	)	%	(70	)	%
Market-indexed (d)	5,507			17,091			20,090			23,809			23,409			(68	)	%	(76	)	%
Total interest-bearing deposits	24,745			54,489			67,413			78,591			79,002			(55	)	%	(69	)	%
Federal funds purchased	315			2,214			5,026			4,898			3,142			(86	)	%	(90	)	%
Securities sold under agreements to repurchase	907			2,623			2,843			3,301			3,580			(65	)	%	(75	)	%
Trading liabilities	974			3,292			2,987			2,943			3,756			(70	)	%	(74	)	%
Other short-term borrowings	233			5,027			3,989			3,333			4,316			(95	)	%	(95	)	%
Term borrowings (e)	14,106			7,921			10,491			13,752			14,683			78		%	(4	)	%
Interest expense	41,280			75,566			92,749			106,818			108,479			(45	)	%	(62	)	%
Net interest income - tax equivalent basis	307,877			305,055			313,789			302,241			305,777			1		%	1		%
Fully taxable equivalent adjustment	(2,533		)	(2,253		)	(2,396		)	(1,565		)	(2,167		)	(12	)	%	(17	)	%
Net interest income	$	305,344		$	302,802		$	311,393		$	300,676		$	303,610		1		%	1		%

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) 2Q20 balance driven by negative market rates on reverse repurchase agreements.

(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) In 2Q20 FHN issued $800 million of senior notes and First Horizon Bank issued $450 million of subordinated notes; In 4Q19 $400 million of First Horizon Bank senior capital notes matured.

12

FHN CONSOLIDATED AVERAGE BALANCE SHEET: YIELDS AND RATES

Quarterly, Unaudited 

	2Q20			1Q20		4Q19		3Q19		2Q19
Assets:
Earning assets (a)
Loans, net of unearned income (b)
Commercial loans	3.56		%	4.33	%	4.63	%	4.78	%	5.05	%
Consumer loans	4.00			4.33		4.51		4.55		4.65
Total loans, net of unearned income (c)	3.65			4.33		4.60		4.73		4.95
Loans held-for-sale	3.61			4.67		4.85		5.33		5.36
Investment securities:
U.S. government agencies	2.05			2.32		2.45		2.45		2.61
States and municipalities	3.48			3.35		3.53		3.51		3.31
Corporate bonds	4.71			4.67		4.71		4.71		4.41
U.S. treasuries	0.12			NM		NM		NM		NM
Other	33.42			33.76		33.73		34.52		34.73
Total investment securities	2.23			2.51		2.60		2.63		2.74
Trading securities	2.48			2.91		3.01		3.06		3.41
Other earning assets:
Federal funds sold	0.22			1.05		2.10		2.64		2.74
Securities purchased under agreements to resell (d)	(0.08	)		1.13		1.52		2.02		2.23
Interest-bearing cash	0.09			1.13		1.60		1.96		2.28
Total other earning assets	0.06			1.13		1.56		2.00		2.27
Interest income/total earning assets	3.29		%	3.94	%	4.22	%	4.35	%	4.52	%
Liabilities:
Interest-bearing liabilities:
Interest-bearing deposits:
Consumer interest	0.29		%	0.54	%	0.66	%	0.77	%	0.76	%
Commercial interest	0.61			1.28		1.57		1.76		1.82
Market-indexed (e)	0.37			1.55		1.82		2.28		2.46
Total interest-bearing deposits	0.38			0.90		1.10		1.29		1.32
Federal funds purchased	0.12			1.19		1.71		2.19		2.43
Securities sold under agreements to repurchase	0.36			1.36		1.61		1.81		2.08
Trading liabilities	1.11			1.76		2.02		2.33		2.75
Other short-term borrowings	0.17			1.20		1.87		2.47		2.66
Term borrowings (f)	3.96			4.01		4.52		4.64		4.96
Interest expense/total interest-bearing liabilities	0.54			1.05		1.29		1.52		1.58
Net interest spread	2.75		%	2.89	%	2.93	%	2.83	%	2.94	%
Effect of interest-free sources used to fund earning assets	0.15			0.27		0.33		0.38		0.40
Net interest margin	2.90		%	3.16	%	3.26	%	3.21	%	3.34	%
Total loan yield	3.65		%	4.33	%	4.60	%	4.73	%	4.95	%
Total deposit cost	0.27		%	0.67	%	0.82	%	0.96	%	0.99	%
Total funding cost	0.40		%	0.81	%	1.00	%	1.17	%	1.22	%

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) 2Q20 yield driven by negative market rates on reverse repurchase agreements.

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

(f) Rates are expressed net of unamortized debenture cost for term borrowings; In 2Q20 FHN issued $800 million of senior notes and First Horizon Bank issued $450 million of subordinated notes; In 4Q19 $400 million of First Horizon Bank senior capital notes matured.

13

FHN CAPITAL HIGHLIGHTS

Quarterly, Unaudited 

																2Q20 Changes vs.
(Dollars and shares in thousands)	2Q20			1Q20			4Q19			3Q19			2Q19			1Q20			2Q19
Common equity tier 1 capital (a) (b) (c)	$	3,457,447		$	3,421,763		$	3,408,936		$	3,326,059		$	3,270,484		1		%	6	%
Tier 1 capital (a) (b) (c)	3,992,552			3,812,203			3,760,450			3,679,158			3,620,001			5		%	10	%
Total capital (a) (c)	4,659,652			4,319,384			4,154,885			4,065,306			4,009,116			8		%	16	%
Risk-weighted assets (“RWA”) (a) (b) (d)	37,343,970			40,055,114			37,045,782			36,913,347			35,341,740			(7	)	%	6	%
Average assets for leverage (a) (b)	46,657,797			42,348,418			41,583,446			40,660,442			40,022,187			10		%	17	%
Common equity tier 1 ratio (a) (b) (c)	9.26		%	8.54		%	9.20		%	9.01		%	9.25		%
Tier 1 ratio (a) (b) (c)	10.69		%	9.52		%	10.15		%	9.97		%	10.24		%
Total capital ratio (a) (c)	12.48		%	10.78		%	11.22		%	11.01		%	11.34		%
Leverage ratio (a) (b) (c)	8.56		%	9.00		%	9.04		%	9.05		%	9.04		%
Total equity to total assets (c)	10.71		%	10.71		%	11.72		%	11.43		%	11.68		%
Tangible common equity/tangible assets (“TCE/TA”) (c) (e)	6.63		%	6.81		%	7.48		%	7.20		%	7.29		%
Period-end shares outstanding	312,359			311,863			311,469			311,180			312,478			*			*
Cash dividends declared per common share	$	0.15		$	0.15		$	0.14		$	0.14		$	0.14		*			7	%
Book value per common share (c)	$	14.96		$	14.96		$	15.04		$	14.80		$	14.51
Tangible book value per common share (c) (e)	$	9.99		$	9.96		$	10.02		$	9.76		$	9.47
Market capitalization (millions) (f)	$	3,111.1		$	2,513.6		$	5,157.9		$	5,041.1		$	4,665.3

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) 2Q20 and 1Q20 include 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) 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 

																2Q20 Changes vs.
(Thousands)	2Q20			1Q20			4Q19			3Q19			2Q19			1Q20			2Q19
Regional Banking
Net interest income (a)	$	349,749		$	300,187		$	310,880		$	302,551		$	297,534		17		%	18		%
Noninterest income	79,312			81,896			89,592			85,929			81,565			(3	)	%	(3	)	%
Total revenues	429,061			382,083			400,472			388,480			379,099			12		%	13		%
Provision for loan losses (b)	108,311			145,441			14,370			20,471			17,776			(26	)	%	NM
Noninterest expense (c)	202,297			211,034			202,193			192,537			192,413			(4	)	%	5		%
Income before income taxes	118,453			25,608			183,909			175,472			168,910			NM			(30	)	%
Provision for income taxes	26,948			4,401			43,295			42,012			39,788			NM			(32	)	%
Net income	$	91,505		$	21,207		$	140,614		$	133,460		$	129,122		NM			(29	)	%
Fixed Income
Net interest income	$	13,545		$	10,914		$	7,232		$	5,311		$	6,171		24		%	NM
Noninterest income (d)	113,235			95,723			81,185			77,809			65,622			18		%	73		%
Total revenues	126,780			106,637			88,417			83,120			71,793			19		%	77		%
Noninterest expense (e)	83,039			81,063			62,090			67,576			55,534			2		%	50		%
Income before income taxes	43,741			25,574			26,327			15,544			16,259			71		%	NM
Provision/(benefit) for income taxes	10,679			6,099			6,362			3,708			3,840			75		%	NM
Net income	$	33,062		$	19,475		$	19,965		$	11,836		$	12,419		70		%	NM
Corporate
Net interest income/(expense) (a)	$	(63,493	)	$	(13,359	)	$	(12,826	)	$	(13,339	)	$	(7,146	)	NM			NM
Noninterest income (f)	12,943			(3,718		)	11,246			7,359			9,401			NM			38		%
Total revenues	(50,550		)	(17,077		)	(1,580		)	(5,980		)	2,255			NM			NM
Noninterest expense (f) (g)	43,218			15,449			59,210			43,217			56,873			NM			(24	)	%
Income/(loss) before income taxes	(93,768		)	(32,526		)	(60,790		)	(49,197		)	(54,618		)	NM			(72	)	%
Provision/ (benefit) for income taxes	(25,097		)	(6,372		)	(15,616		)	(11,881		)	(13,525		)	NM			(86	)	%
Net income/(loss)	$	(68,671	)	$	(26,154	)	$	(45,174	)	$	(37,316	)	$	(41,093	)	NM			(67	)	%
Non-Strategic
Net interest income	$	5,543		$	5,060		$	6,107		$	6,153		$	7,051		10		%	(21	)	%
Noninterest income	779			855			1,284			638			1,405			(9	)	%	(45	)	%
Total revenues	6,322			5,915			7,391			6,791			8,456			7		%	(25	)	%
Provision/(provision credit) for loan losses (b)	1,689			(441		)	(4,370		)	(5,471		)	(4,776		)	NM			NM
Noninterest expense (h)	3,614			3,773			3,954			4,342			(4,426		)	(4	)	%	NM
Income before income taxes	1,019			2,583			7,807			7,920			17,658			(61	)	%	(94	)	%
Provision for income taxes	250			639			1,929			1,957			4,364			(61	)	%	(94	)	%
Net income	$	769		$	1,944		$	5,878		$	5,963		$	13,294		(60	)	%	(94	)	%
Total Consolidated
Net interest income	$	305,344		$	302,802		$	311,393		$	300,676		$	303,610		1		%	1		%
Noninterest income	206,269			174,756			183,307			171,735			157,993			18		%	31		%
Total revenues	511,613			477,558			494,700			472,411			461,603			7		%	11		%
Provision/(provision credit) for loan losses (b)	110,000			145,000			10,000			15,000			13,000			(24	)	%	NM
Noninterest expense	332,168			311,319			327,447			307,672			300,394			7		%	11		%
Income before income taxes	69,445			21,239			157,253			149,739			148,209			NM			(53	)	%
Provision for income taxes	12,780			4,767			35,970			35,796			34,467			NM			(63	)	%
Net income	$	56,665		$	16,472		$	121,283		$	113,943		$	113,742		NM			(50	)	%

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

NM - Not meaningful    

(a) 2Q20 increase in NII in Regional Banking primarily driven by higher average balances of loans to mortgage companies and PPP lending activities coupled with wider loan spreads (Funds Transfer Pricing ("FTP") offset is in Corporate).

(b) 2Q20 and 1Q20 increases in provision expense primarily driven by the economic forecast attributable to the COVID-19 pandemic.

(c) 2Q20 decrease attributable to lower personnel and advertising and public relations expense, higher deferred loan origination costs, and lower travel and entertainment expenses, somewhat offset by an increase in expense on unfunded commitments; 2Q20 and 1Q20 include $11.2 million and $9.2 million of expense on unfunded commitments.

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

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

(f) 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.

(g) Refer to the Acquisition and Restructuring expense tables on page 9 for additional information about variability in quarterly balances; 4Q19 includes $11.0 million of charitable contributions and $6.4 million of costs related to rebranding; 3Q19 includes $4.0 million of valuation adjustments associated with derivatives related to prior sales of Visa Class B shares; 2Q19 includes $7.4 million of costs primarily associated with fixed asset impairments and technology-related expenses related to rebranding.

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

15

FHN REGIONAL BANKING

Quarterly, Unaudited 

											2Q20 Changes vs.
	2Q20		1Q20		4Q19		3Q19		2Q19		1Q20			2Q19
Income Statement (thousands)
Net interest income (a)	$	349,749	$	300,187	$	310,880	$	302,551	$	297,534	17		%	18		%
Provision for loan losses (b)	108,311		145,441		14,370		20,471		17,776		(26	)	%	NM
Noninterest income:
NSF / Overdraft fees (c)	6,373		10,922		13,325		13,703		12,350		(42	)	%	(48	)	%
Cash management fees	9,576		9,289		9,200		9,561		8,026		3		%	19		%
Debit card income (d)	9,006		4,306		4,659		4,750		4,961		NM			82		%
Other	4,587		4,311		4,472		4,592		5,294		6		%	(13	)	%
Total deposit transactions and cash management	29,542		28,828		31,656		32,606		30,631		2		%	(4	)	%
Brokerage, management fees and commissions	13,800		15,405		14,558		14,156		14,120		(10	)	%	(2	)	%
Trust services and investment management	7,750		7,213		7,452		7,190		7,902		7		%	(2	)	%
Bankcard income	6,551		7,152		7,881		7,031		6,597		(8	)	%	(1	)	%
Other service charges	4,517		5,156		5,697		5,655		5,466		(12	)	%	(17	)	%
Miscellaneous revenue (e)	17,152		18,142		22,348		19,291		16,849		(5	)	%	2		%
Total noninterest income	79,312		81,896		89,592		85,929		81,565		(3	)	%	(3	)	%
Noninterest expense:
Employee compensation, incentives, and benefits	74,114		79,019		74,466		73,713		76,752		(6	)	%	(3	)	%
Other (f)	128,183		132,015		127,727		118,824		115,661		(3	)	%	11		%
Total noninterest expense	202,297		211,034		202,193		192,537		192,413		(4	)	%	5		%
Income before income taxes	$	118,453	$	25,608	$	183,909	$	175,472	$	168,910	NM			(30	)	%
PPNR (g)	226,764		171,049		198,279		195,943		186,686		33		%	21		%
Balance Sheet (millions)
Average loans	$	33,115	$	29,615	$	29,729	$	28,966	$	27,541	12		%	20		%
Average other earning assets	50		50		55		49		50		*			*
Total average earning assets	33,165		29,665		29,784		29,015		27,591		12		%	20		%
Total average deposits	33,792		30,582		30,415		30,047		29,956		10		%	13		%
Total period-end deposits	34,401		30,731		30,595		30,062		30,274		12		%	14		%
Total period-end assets	34,444		35,116		32,898		33,159		31,343		(2	)	%	10		%
Key Statistics
Return on average assets (quarters are annualized) (h)	1.03%		0.27%		1.72%		1.67%		1.71%
Return on allocated equity (h) (i)	11.75%		2.80%		18.19%		17.56%		17.44%
Fee income to total revenue (h)	18.49%		21.43%		22.37%		22.12%		21.52%
Efficiency ratio (h)	47.15%		55.23%		50.49%		49.56%		50.76%
Net interest margin (j)	4.27%		4.10%		4.17%		4.16%		4.35%
Net interest spread	3.32%		3.65%		3.77%		3.82%		3.99%
Loan average yield	3.56%		4.24%		4.50%		4.68%		4.88%
Deposit average rate	0.24%		0.59%		0.73%		0.86%		0.89%
Regional banking net charge-offs/(recoveries)	$	17,989	$	8,119	$	5,886	$	17,074	$	7,841	NM			NM
Financial center locations (k)	269		269		269		270		292		*			(8	)	%

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

NM - Not meaningful    

* Amount is less than one percent

(a) 2Q20 increase in NII primarily driven by higher average balances of loans to mortgage companies and PPP lending activities coupled with wider loan spreads (FTP offset is in Corporate).

(b) 2Q20 and 1Q20 increase in provision expense primarily driven by the economic forecast attributable to the COVID-19 pandemic.

(c) Variability is driven by seasonality and changes in consumer behavior; 2Q20 decrease due to the impact of the COVID-19 pandemic.

(d) 2Q20 includes a $4.6 million debit card incentive payment.

(e) 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.

(f) 2Q20 decrease attributable to lower advertising and public relations expense, higher deferred loan origination costs, and lower travel and entertainment expenses, somewhat offset by an increase in expense on unfunded commitments; 2Q20 and 1Q20 include $11.2 million and $9.2 million of expense on unfunded commitments; 4Q19 increase due in large part to higher strategic investments in technology and advertising.

(g) This non-GAAP measure is reconciled to pre-tax income ("PTI") (GAAP) in the Non-GAAP to GAAP reconciliation on page 23 of this financial supplement.

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

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

(j) 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.

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

16

FHN FIXED INCOME

Quarterly, Unaudited

																2Q20 Changes vs.
	2Q20			1Q20			4Q19			3Q19			2Q19			1Q20			2Q19
Income Statement (thousands)
Net interest income	$	13,545		$	10,914		$	7,232		$	5,311		$	6,171		24		%	NM
Noninterest income:
Fixed income product revenue (a)	100,272			78,354			65,772			63,646			54,533			28		%	84		%
Other	12,963			17,369			15,413			14,163			11,089			(25	)	%	17		%
Total noninterest income	113,235			95,723			81,185			77,809			65,622			18		%	73		%
Noninterest expense (b)	83,039			81,063			62,090			67,576			55,534			2		%	50		%
Income before income taxes	$	43,741		$	25,574		$	26,327		$	15,544		$	16,259		71		%	NM
Fixed income product average daily revenue	$	1,592		$	1,264		$	1,061		$	994		$	866		26		%	84		%
Balance Sheet (millions)
Average trading inventory	$	1,419		$	1,831		$	1,263		$	1,390		$	1,563		(22	)	%	(9	)	%
Average loans held-for-sale	631			491			477			367			528			29		%	20		%
Average other earning assets	579			949			829			709			670			(39	)	%	(14	)	%
Total average earning assets	2,629			3,271			2,569			2,466			2,761			(20	)	%	(5	)	%
Total period-end assets	2,961			3,965			2,987			3,323			3,232			(25	)	%	(8	)	%
Key Statistics
Return on average assets (c)	4.08		%	2.08		%	2.65		%	1.63		%	1.59		%
Return on allocated equity (c) (d)	65.83		%	37.12		%	39.92		%	23.61		%	24.64		%
Efficiency ratio (c)	65.50		%	76.02		%	70.22		%	81.30		%	77.35		%
Net interest margin (e)	2.07		%	1.36		%	1.15		%	0.88		%	0.92		%

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.

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

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

(e) 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

																2Q20 Changes vs.
	2Q20			1Q20			4Q19			3Q19			2Q19			1Q20		2Q19
Income Statement (thousands)
Net interest income/(expense) (a)	$	(63,493	)	$	(13,359	)	$	(12,826	)	$	(13,339	)	$	(7,146	)	NM		NM
Noninterest income excluding securities gains/(losses) (b)	14,436			(3,743		)	11,249			7,262			9,352			NM		54		%
Securities gains/(losses), net	(1,493		)	25			(3		)	97			49			NM		NM
Noninterest expense (c)	43,218			15,449			59,210			43,217			56,873			NM		(24	)	%
Income/(loss) before income taxes	$	(93,768	)	$	(32,526	)	$	(60,790	)	$	(49,197	)	$	(54,618	)	NM		(72	)	%
Average Balance Sheet (millions)
Average investment securities	$	4,519		$	4,446		$	4,432		$	4,389		$	4,568		2	%	(1	)	%
Total earning assets	$	6,123		$	5,010		$	4,980		$	4,916		$	5,295		22	%	16		%
Deferred Compensation (thousands)
Other Income	$	8,171		$	(9,507	)	$	3,339		$	472		$	1,938		NM		NM
Employee compensation, incentives, and benefits	$	9,299		$	(10,548	)	$	3,846		$	567		$	2,150		NM		NM

Estimated effective duration of securities portfolio 1.4 years in 2Q20 compared to 1.3 years in 1Q20

NM - Not Meaningful    

(a) 2Q20 decrease in NII primarily driven by funds transfer pricing methodology with offset in Regional Banking.

(b) 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.

(c) Refer to the Acquisition and Restructuring expense tables on page 9 for additional information about variability in quarterly balances; 4Q19 includes $11.0 million of charitable contributions and $6.4 million of costs related to rebranding; 3Q19 includes $4.0 million of valuation adjustments associated with derivatives related to prior sales of Visa Class B shares; 2Q19 includes $7.4 million of costs primarily associated with fixed asset impairments and technology-related expenses related to rebranding.

17

FHN NON-STRATEGIC

Quarterly, Unaudited

																2Q20 Changes vs.
	2Q20			1Q20			4Q19			3Q19			2Q19			1Q20			2Q19
Income Statement (thousands)
Net interest income	$	5,543		$	5,060		$	6,107		$	6,153		$	7,051		10		%	(21	)	%
Provision/(provision credit) for loan losses (a)	1,689			(441		)	(4,370		)	(5,471		)	(4,776		)	NM			NM
Noninterest income	779			855			1,284			638			1,405			(9	)	%	(45	)	%
Noninterest expense (b)	3,614			3,773			3,954			4,342			(4,426		)	(4	)	%	NM
Income before income taxes	$	1,019		$	2,583		$	7,807		$	7,920		$	17,658		(61	)	%	(94	)	%
Average Balance Sheet (millions)
Loans	$	723		$	779		$	844		$	927		$	1,002		(7	)	%	(28	)	%
Other assets	49			52			67			64			75			(6	)	%	(35	)	%
Total assets	772			831			911			991			1,077			(7	)	%	(28	)	%
Key Statistics
Return on average assets (c)	0.40		%	0.94		%	2.56		%	2.39		%	4.95		%
Return on allocated equity (c) (d)	7.38		%	15.56		%	37.26		%	32.27		%	64.89		%
Fee income to total revenue (c)	12.32		%	14.45		%	17.37		%	9.39		%	16.62		%
Efficiency ratio (c)	57.17		%	63.79		%	53.50		%	63.94		%	NM
Net interest margin (e)	2.83		%	2.41		%	2.67		%	2.47		%	2.64		%
Net charge-offs/(recoveries)	$	(1,380	)	$	(908	)	$	(3,044	)	$	(2,474	)	$	(2,679	)	(52	)	%	48		%

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

NM - Not meaningful

(a) 2Q20 and 1Q20 increases in provision expense primarily driven by the economic forecast attributable to the COVID-19 pandemic.

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

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

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

(e) 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 

																					2Q20 Changes vs.
(Dollars in thousands)	2Q20				1Q20				4Q19				3Q19				2Q19				1Q20	2Q19
Allowance for Loan Losses Walk-Forward
Beginning reserve	$	444,490			$	200,307			$	193,149			$	192,749			$	184,911			NM	NM
ASU Adoption 2016-13 (a)	—				106,394				—				—				—				NM	NM
Provision/(provision credit) for loan losses (a)	110,000				145,000				10,000				15,000				13,000				(24)%	NM
Charge-offs	(22,907			)	(13,453			)	(11,646			)	(24,337			)	(12,223			)	(70)%	(87)%
Recoveries	6,298				6,242				8,804				9,737				7,061				1%	(11)%
Ending balance	$	537,881			$	444,490			$	200,307			$	193,149			$	192,749			21%	NM
Reserve for unfunded commitments (b)	50,461				39,303				6,101				6,890				7,524				28%	NM
Total allowance for loan losses plus reserve for unfunded commitments	$	588,342			$	483,793			$	206,408			$	200,039			$	200,273			22%	NM
Allowance for Loan Losses (a)
Regional Banking	$	503,876			$	413,552			$	182,730			$	174,246			$	170,849			22%	NM
Non-Strategic	34,005				30,938				17,577				18,903				21,900				10%	55%
Total allowance for loan losses	$	537,881			$	444,490			$	200,307			$	193,149			$	192,749			21%	NM
Nonperforming Assets
Regional Banking
Nonperforming loans	$	175,188			$	142,916			$	113,187			$	118,506			$	145,265			23%	21%
OREO	9,210				10,278				12,347				13,408				13,251				(10)%	(30)%
Total Regional Banking	$	184,398			$	153,194			$	125,534			$	131,914			$	158,516			20%	16%
Non-Strategic
Nonperforming loans	$	49,594			$	45,595			$	47,651			$	52,346			$	57,654			9%	(14)%
Nonperforming loans held-for-sale after fair value adjustments	6,219				3,611				4,047				4,199				4,514				72%	38%
OREO	3,967				3,603				3,313				4,408				3,342				10%	19%
Total Non-Strategic	$	59,780			$	52,809			$	55,011			$	60,953			$	65,510			13%	(9)%
Corporate
Nonperforming loans	$	1,209			$	1,302			$	1,327			$	1,643			$	1,667			(7)%	(27)%
Total nonperforming assets	$	245,387			$	207,305			$	181,872			$	194,510			$	225,693			18%	9%
Net Charge-Offs
Regional Banking	$	17,989			$	8,119			$	5,886			$	17,074			$	7,841			NM	NM
Non-Strategic	(1,380			)	(908			)	(3,044			)	(2,474			)	(2,679			)	(52)%	48%
Total net charge-offs/(recoveries)	$	16,609			$	7,211			$	2,842			$	14,600			$	5,162			NM	NM
Consolidated Key Ratios (c)
30+ Delinq. % (d)	0.13		%		0.19		%		0.19		%		0.23		%		0.20		%
NPL %	0.69				0.57				0.52				0.55				0.69
NPA %	0.73				0.61				0.57				0.61				0.74
Net charge-offs % (e)	0.20				0.10				0.04				0.19				0.07
Allowance / loans % (a)	1.64				1.33				0.64				0.62				0.65
Allowance / NPL (a)	2.38		x		2.34		x		1.24		x		1.12		x		0.94		x
Allowance / NPA (a)	2.25		x		2.18		x		1.13		x		1.01		x		0.87		x
Allowance / net charge-offs	8.05		x		15.33		x		17.76		x		3.33		x		9.31		x
Other
Loans past due 90 days or more and still accruing (f)	$	20,600			$	20,340			$	28,343			$	27,182			$	28,663			1%	(28)%
Guaranteed portion (f)	5,998				5,165				6,417				6,028				5,628				16%	7%
Period-end loans, net of unearned income (millions)	32,709				33,378				31,061				31,261				29,713				(2)%	10%
30+ delinquencies (thousands)	$	41,654			$	62,642			$	57,911			$	70,675			$	58,861			(34)%	(29)%

NM - Not meaningful

* Amount is less than one percent.

(a) 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 $106.4 million in 1Q20; 2Q20 and 1Q20 increases reflect increased reserves established in association with the economic forecast attributable to the COVID-19 pandemic.

(b) 2Q20 and 1Q20 increases reflect increased reserves established in association with the economic forecast attributable to the COVID-19 pandemic.

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

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

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

(f) Includes loans held-for-sale.

19

FHN ASSET QUALITY: CONSOLIDATED

Quarterly, Unaudited 

																2Q20 Changes vs.
	2Q20			1Q20			4Q19			3Q19			2Q19			1Q20	2Q19
Key Portfolio Details
C&I (a)
Period-end loans ($ millions)	$	21,394		$	22,124		$	20,051		$	20,294		$	19,054		(3)%	12%
30+ Delinq. % (b) (c)	0.03		%	0.08		%	0.05		%	0.11		%	0.05		%
NPL % (d)	0.60			0.43			0.37			0.38			0.56
Charge-offs % (qtr. annualized) (e)	0.30			0.12			0.07			0.32			0.14
Allowance / loans % (f)	1.49		%	1.15		%	0.61		%	0.56		%	0.61		%
Allowance / net charge-offs	4.63		x	10.88		x	9.25		x	1.87		x	4.77		x
Commercial Real Estate (a)
Period-end loans ($ millions)	$	4,813		$	4,640		$	4,337		$	4,229		$	3,861		4%	25%
30+ Delinq. % (b)	0.00		%	0.01		%	0.02		%	0.04		%	0.07		%
NPL %	0.04			0.05			0.04			0.05			0.07
Charge-offs % (qtr. annualized)	NM			0.00			NM			0.02			0.02
Allowance / loans % (f)	1.19		%	1.03		%	0.83		%	0.84		%	0.85		%
Allowance / net charge-offs	NM			NM			NM			47.70		x	39.25		x
Consumer Real Estate (g)
Period-end loans ($ millions)	$	6,053		$	6,119		$	6,177		$	6,245		$	6,303		(1)%	(4)%
30+ Delinq. % (b)	0.53		%	0.66		%	0.70		%	0.68		%	0.66		%
NPL %	1.59			1.49			1.39			1.50			1.50
Charge-offs % (qtr. annualized)	NM			NM			NM			NM			NM
Allowance / loans % (f)	2.38		%	2.01		%	0.46		%	0.49		%	0.50		%
Allowance / net charge-offs	NM			NM			NM			NM			NM
Credit Card and Other
Period-end loans ($ millions)	$	449		$	495		$	496		$	493		$	495		(9)%	(9)%
30+ Delinq. % (b)	0.77		%	0.99		%	0.93		%	0.94		%	1.06		%
NPL %	0.06			0.07			0.07			0.07			0.09
Charge-offs % (qtr. annualized)	1.35			2.12			2.29			2.10			2.17
Allowance / loans % (f)	4.03		%	3.91		%	2.68		%	2.58		%	2.46		%
Allowance / net charge-offs	2.82		x	1.83		x	1.14		x	1.21		x	1.13		x

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 was immaterial.

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

(c) 2Q20 decrease in delinquencies as a percentage of total loans was driven by several loans that returned to current; 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) 2Q20 increase in NPLs as a percentage of total loans was primarily driven by two credits; 1Q20 increase in NPLs as a percentage of total loans was primarily driven by one credit; 2Q19 NPLs as a percentage of total loans was primarily driven by one credit.

(e) 2Q20 charge-offs as a percentage of total loans was primarily driven by two credits; 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.

(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 $106.4 million in 1Q20; 2Q20 and 1Q20 increases reflect increased reserves established in association with the economic forecast attributable to the COVID-19 pandemic.

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

20

FHN ASSET QUALITY: REGIONAL BANKING

Quarterly, Unaudited 

																2Q20 Changes vs.
	2Q20			1Q20			4Q19			3Q19			2Q19			1Q20	2Q19
Total Regional Banking
Period-end loans ($ millions)	$	31,990		$	32,591		$	30,213		$	30,345		$	28,711		(2)%	11%
30+ Delinq. % (b) (c)	0.10		%	0.15		%	0.14		%	0.18		%	0.15		%
NPL % (d)	0.55			0.44			0.37			0.39			0.51
Charge-offs % (qtr. annualized) (e)	0.22			0.11			0.08			0.23			0.11
Allowance / loans % (f)	1.58		%	1.27		%	0.60		%	0.57		%	0.60		%
Allowance / net charge-offs	6.96		x	12.66		x	7.82		x	2.57		x	5.43		x
Key Portfolio Details
C&I (a)
Period-end loans ($ millions)	$	21,074		$	21,798		$	19,721		$	19,962		$	18,710		(3)%	13%
30+ Delinq. % (b) (c)	0.03		%	0.07		%	0.05		%	0.11		%	0.05		%
NPL % (d)	0.60			0.44			0.38			0.37			0.56
Charge-offs % (qtr. annualized) (e)	0.31			0.12			0.07			0.33			0.14
Allowance / loans % (f)	1.46		%	1.12		%	0.62		%	0.57		%	0.61		%
Allowance / net charge-offs	4.48		x	10.45		x	9.23		x	1.87		x	4.73
Commercial Real Estate (a)
Period-end loans ($ millions)	$	4,794		$	4,608		$	4,292		$	4,172		$	3,787		4%	27%
30+ Delinq. % (b)	—		%	0.01		%	0.02		%	0.04		%	0.07		%
NPL %	0.04			0.05			0.04			0.05			0.07
Charge-offs % (qtr. annualized)	NM			—			NM			0.02			0.02
Allowance / loans % (f)	1.18		%	1.02		%	0.79		%	0.79		%	0.77		%
Allowance / net charge-offs	NM			NM			NM			43.95			34.79
Consumer Real Estate (g)
Period-end loans ($ millions)	$	5,692		$	5,717		$	5,738		$	5,763		$	5,776		*	(1)%
30+ Delinq. % (b)	0.42		%	0.51		%	0.50		%	0.48		%	0.50		%
NPL % (h)	0.80			0.78			0.65			0.74			0.66
Charge-offs % (qtr. annualized)	NM			NM			NM			NM			NM
Allowance / loans % (f)	2.12		%	1.80		%	0.23		%	0.26		%	0.25		%
Allowance / net charge-offs	NM			NM			NM			NM			NM
Credit Card and Other
Period-end loans ($ millions)	$	430		$	468		$	462		$	448		$	438		(8)%	(2)%
30+ Delinq. % (b)	0.74		%	0.90		%	0.69		%	0.65		%	0.66		%
NPL %	0.02			0.02			0.01			0.01			0.01
Charge-offs % (qtr. annualized)	1.42			2.14			2.32			2.02			1.84
Allowance / loans % (f)	4.14		%	4.06		%	2.87		%	2.83		%	2.77		%
Allowance / net charge-offs	2.77		x	1.89		x	1.21		x	1.40		x	1.51		x
ASSET QUALITY: CORPORATE
Consumer Real Estate (g)
Period-end loans ($ millions)	$	28		$	31		$	31		$	34		$	35		(10)%	(20)%
30+ Delinq. % (b)	4.90		%	5.39		%	5.29		%	5.00		%	4.03		%
NPL %	4.34			4.25			4.22			4.90			4.79
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 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.

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

(c) 2Q20 decrease in delinquencies as a percentage of total loans was primarily driven by several loans to that returned to current; 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.

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

(e) 2Q20 charge-offs as a percentage of total loans was primarily driven by two credits; 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.

(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 $106.4 million in 1Q20; 2Q20 and 1Q20 increases reflect increased reserves established in association with the economic forecast attributable to the COVID-19 pandemic.

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

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

21

FHN ASSET QUALITY: NON-STRATEGIC

Quarterly, Unaudited 

																2Q20 Changes vs.
	2Q20			1Q20			4Q19			3Q19			2Q19			1Q20	2Q19
Total Non-Strategic
Period-end loans ($ millions)	$	691		$	756		$	817		$	882		$	967		(9)%	(29)%
30+ Delinq. % (a)	1.06		%	1.56		%	1.72		%	1.67		%	1.42		%
NPL %	7.17			6.03			5.83			5.93			5.96
Charge-offs % (qtr. annualized)	NM			NM			NM			NM			NM
Allowance / loans % (b)	4.92		%	4.09		%	2.15		%	2.14		%	2.27		%
Allowance / net charge-offs	NM			NM			NM			NM			NM
Key Portfolio Details
Commercial
Period-end loans ($ millions)	$	339		$	358		$	375		$	388		$	418		(5)%	(19)%
30+ Delinq. % (a) (c)	—		%	0.45		%	—		%	—		%	—		%
NPL %	—			—			—			0.70			0.66
Charge-offs % (qtr. annualized)	—			—			—			—			0.02
Allowance / loans % (b)	3.19		%	2.95		%	0.65		%	0.77		%	1.20		%
Allowance / net charge-offs	NM			NM			NM			NM			56.57
Consumer Real Estate (d)
Period-end loans ($ millions)	$	332		$	371		$	407		$	449		$	492		(11)%	(33)%
30+ Delinq. % (a) (e)	2.11		%	2.56		%	3.10		%	2.91		%	2.30		%
NPL %	14.88			12.19			11.63			10.98			11.07
Charge-offs % (qtr. annualized)	NM			NM			NM			NM			NM
Allowance / loans % (b)	6.89		%	5.40		%	3.71		%	3.54		%	3.42		%
Allowance / net charge-offs	NM			NM			NM			NM			NM
Other Consumer
Period-end loans ($ millions)	$	20		$	27		$	35		$	45		$	57		(26)%	(65)%
30+ Delinq. % (a)	1.42		%	2.60		%	4.05		%	3.78		%	4.21		%
NPL %	0.79			0.94			0.85			0.72			0.72
Charge-offs % (qtr. annualized)	NM			1.82			1.83			2.84			4.41
Allowance / loans % (b)	1.57		%	1.21		%	0.09		%	0.09		%	0.09		%
Allowance / net charge-offs	NM			0.58		x	0.04		x	0.03			0.02

NM - Not meaningful

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

(b) 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 $106.4 million in 1Q20; 2Q20 and 1Q20 increases reflect increased reserves established in association with the economic forecast attributable to the COVID-19 pandemic.

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

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

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

22

FHN NON-GAAP TO GAAP RECONCILIATION

Quarterly, Unaudited

(Dollars and shares in thousands, except per share data)	2Q20			1Q20			4Q19			3Q19			2Q19
Tangible Common Equity (Non-GAAP)
(A) Total equity (GAAP)	$	5,208,385		$	5,055,580		$	5,076,008		$	4,996,043		$	4,926,081
Less: Noncontrolling interest (a)	295,431			295,431			295,431			295,431			295,431
Less: Preferred stock (a)	240,289			95,624			95,624			95,624			95,624
(B) Total common equity	$	4,672,665		$	4,664,525		$	4,684,953		$	4,604,988		$	4,535,026
Less: Intangible assets (GAAP) (b)	1,552,395			1,557,679			1,562,987			1,569,193			1,575,399
(C) Tangible common equity (Non-GAAP)	$	3,120,270		$	3,106,846		$	3,121,966		$	3,035,795		$	2,959,627
Tangible Assets (Non-GAAP)
(D) Total assets (GAAP)	$	48,644,659		$	47,197,378		$	43,310,900		$	43,717,684		$	42,171,770
Less: Intangible assets (GAAP) (b)	1,552,395			1,557,679			1,562,987			1,569,193			1,575,399
(E) Tangible assets (Non-GAAP)	$	47,092,264		$	45,639,699		$	41,747,913		$	42,148,491		$	40,596,371
Average Tangible Common Equity (Non-GAAP)
(F) Average total equity (GAAP)	$	5,117,613		$	5,002,394		$	5,039,868		$	4,962,341		$	4,869,161
Less: Average noncontrolling interest (a)	295,431			295,431			295,431			295,431			295,431
Less: Average preferred stock (a)	149,675			95,624			95,624			95,624			95,624
(G) Total average common equity	$	4,672,507		$	4,611,339		$	4,648,813		$	4,571,286		$	4,478,106
Less: Average intangible assets (GAAP) (b)	1,555,049			1,560,340			1,566,079			1,572,312			1,578,505
(H) Average tangible common equity (Non-GAAP)	$	3,117,458		$	3,050,999		$	3,082,734		$	2,998,974		$	2,899,601
Annualized Net Income/(loss) Available to Common Shareholders
(I) Net income /(loss) available to common shareholders (annualized) (GAAP)	$	210,205		$	48,545		$	463,483		$	434,469		$	438,562
Period-end Shares Outstanding
(J) Period-end shares outstanding	312,359			311,863			311,469			311,180			312,478
Pre-provision Net Revenue ("PPNR")
Net interest income (GAAP)	$	305,344		$	302,802		$	311,393		$	300,676		$	303,610
Plus: Noninterest income (GAAP)	206,269			174,756			183,307			171,735			157,993
Total revenues (GAAP)	511,613			477,558			494,700			472,411			461,603
Less: Noninterest expense (GAAP)	332,168			311,319			327,447			307,672			300,394
PPNR (Non-GAAP)	179,445			166,239			167,253			164,739			161,209
Provision/(provision credit) for loan losses (GAAP)	110,000			145,000			10,000			15,000			13,000
Income before income taxes (pre-tax income ("PTI")) (GAAP)	$	69,445		$	21,239		$	157,253		$	149,739		$	148,209
Ratios
(I)/(G) Return on average common equity (“ROCE”) (GAAP)	4.50		%	1.05		%	9.97		%	9.50		%	9.79		%
(I)/(H) Return on average tangible common equity (“ROTCE”) (Non-GAAP)	6.74		%	1.59		%	15.03		%	14.49		%	15.12		%
(A)/(D) Total equity to total assets (GAAP)	10.71		%	10.71		%	11.72		%	11.43		%	11.68		%
(C)/(E) Tangible common equity to tangible assets (“TCE/TA”) (Non-GAAP)	6.63		%	6.81		%	7.48		%	7.20		%	7.29		%
(B)/(J) Book value per common share (GAAP)	$	14.96		$	14.96		$	15.04		$	14.80		$	14.51
(C)/(J) Tangible book value per common share (Non-GAAP)	$	9.99		$	9.96		$	10.02		$	9.76		$	9.47

(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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