First Horizon 8K National Corp. Reports Third Quarter Net Income Available to Common of $523 Million | FHN 23 Oct 20

First Horizon National Corporation

First Horizon National Corp. Reports Third Quarter Net Income Available to Common of $523 Million

and EPS of $0.95

Results include $269 million pre-tax, or $0.60 per share, of notable items largely related to the IBERIABANK merger

Adjusted net income available to common of $193 million or EPS of $0.35*

Reflects strong fee income and continued expense discipline partially offset by the impact of net interest income headwinds and a CECL reserve build of $13 million

ROCE of 28.49%; Adjusted ROTCE of 13.90%*

Tangible book value per share of $9.92 remained relatively stable

MEMPHIS, Tenn., October 23, 2020 – First Horizon National Corp. (NYSE: FHN or “First Horizon”) today reported third quarter 2020 net income available to common shareholders of $523 million, with earnings per share of $0.95. Third quarter 2020 results reflect the impact of the July 1, 2020, IBERIABANK Corporation merger (“IBKC Merger”) and the July 17, 2020, acquisition of 30 Truist branches ("Branch Acquisition") and include $269 million pre-tax, or $0.60 per share, from notable items largely related to the IBKC Merger. Excluding notable items, adjusted third quarter net income available to common shareholders totaled $193 million, or $0.35 per share.* Reported results prior to third quarter 2020 reflect legacy First Horizon results only.

“We achieved major milestones in third quarter 2020 with the completion of our merger of equals with IBERIABANK and the Truist branch acquisition,” said President and Chief Executive Officer Bryan Jordan. “We also delivered strong results despite continued macroeconomic and interest rate headwinds tied to the pandemic, highlighted by strong execution in our counter-cyclical fee income businesses and continued expense discipline.”

Jordan continued, “I am incredibly proud of the hard work and dedication of our associates as they continue to focus on delivering for our clients, communities and shareholders as we bring our two companies together. Our team has been extraordinarily resilient and focused through this year of great change. The benefits of our more diversified product set, enhanced scale, expanded presence in attractive southern markets and client-centric culture provide a strong framework to continue to deliver a superior client experience with enhanced productivity and synergies. The integration is well underway, and I have even more confidence today than when we announced the merger that we are better together and well positioned to deliver for all of our stakeholders."

Third Quarter 2020 Notable Items


Notable Items
Quarterly, Unaudited

(Millions)	3Q20		2Q20		3Q19

Summary of Notable Items:
Purchase accounting gain	$	532	$	—	$	—
Merger/acquisition non-PCD provision expense	(147)		—		—
Merger/acquisition expense	(101)		(14)		(9)
Charitable contributions	(15)		—		—


Other notable expenses	—		—		(22)
Total Notable items	$	269	$	(14)	$	(31)

*References to "Adjusted" results exclude notable items and are Non-GAAP Financial Measures. Please see page 5 for information on our use of Non-GAAP measures and a reconciliation of these measures to GAAP beginning on page 23.

First Horizon National Corporation

Third quarter 2020 results include a net $269 million of notable items primarily tied to the IBKC Merger/Branch Acquisition including:

•A $532 million non-taxable merger purchase accounting gain in other noninterest income

•$101 million of merger/acquisition-related expense largely recorded in personnel, outside services and other non interest income including the Louisiana Foundation contribution

•$147 million of provision for loan losses related to non-purchase credit deteriorated (non-PCD) loans

•Results also reflect $15 million of other noninterest expense tied to the donation of Paycheck Protection Plan (PPP) fees to the First Horizon Foundation to assist low- and moderate -income communities.

Excluding the notable items, the IBKC Merger and Branch Acquisition added $225 million of net interest income,$91 million of noninterest income and $170 million of noninterest expense.

Third Quarter 2020 Highlights*

•Net income available to common of $523 million with EPS of $.0.95; Adjusted net income available to common of $193 million, or $0.35 per share excluding merger-related and other notable items*

•Total revenue of $1.4 billion increased $843 million from second quarter 2020 driven by the $532 merger purchase accounting gain and $313 million impact of the IBKC Merger

•Results reflect strength in fixed income and mortgage banking, which helped to mitigate net interest income headwinds and continued COVID-19 impacts on traditional banking businesses

•Expense of $587 million includes $101 million of notable items largely tied to IBKC Merger; Adjusted expense of $471 million reflects the impact of the IBKC Merger and continued expense discipline with the benefit of an additional $8 million of merger cost saves*

•Efficiency ratio improved to 43.31% from 62.74% at June 30, 2020; Adjusted efficiency ratio of 57.26%*

•Provision for credit losses totaled $227 million and included $147 million related to non-purchase credit deteriorated loans included in notable items; Adjusted provision expense of $80 million reflects a $13 million CECL-related reserve build*

•Tangible book value per share of $9.92 remained relatively stable at September 30, 2020

•ROCE of 28.49% with Adjusted ROTCE of 13.90%*;estimated CET 1 of 9.15% and total capital of 10.19%

•Period-end loan-to-deposit ratio of 87%

Strategic Plan Update

•Achieved merger cost saves of approximately $18 million year to date, with $8 million in third quarter 2020; targeting $170 million annualized in 2022

•Merger integration well underway with significant progress across key milestones including finalizing 100% of major tech system decisions, completing HR system conversion, aligning benefit plans and establishing go-to-market and organizational models

•Three-year strategic plan to be finalized in fourth quarter 2020

COVID-19 Update:

•Donated $15 million of fees associated with PPP to assist low- and moderate-income communities

•PPP portfolio of $4.2 billion, providing aid and jobs for more than 500,000 clients' employees

•Loan deferrals, excluding PPP, declined to 2.4% from a peak of 12.8%

•Closely monitoring industries currently impacted by COVID-19 disruptions with deep dive portfolio reviews

•Continue to prioritize health and safety, and remain focused on executing the business continuity plan, proactive client outreach and communication, and risk management

First Horizon National Corporation


SUMMARY RESULTS, Continued
Quarterly, Unaudited

										3Q20 change vs.
(In millions, except EPS)	3Q20			2Q20			3Q19			2Q20					3Q19
										$/bp		%	$/bp		%
Income Statement
Net interest income	$	532		$	305		$	301		$	227	74	$	231	77
Noninterest income¹	823			206			172			617		NM	651		NM
Total revenue	1,355			512			472			843		NM	883		NM
Noninterest expense	587			321			308			266		83	279		91
Pre-provision net revenue²	768			191			164			577		NM	604		NM
Provision for credit losses³	227			121			14			106		88	213		NM
Income before income taxes	541			69			150			472		NM	391		NM
Provision for income taxes	2			13			36			(11)		(85)	(34)		(94)
Net income	539			57			114			482		NM	425		NM
Net income attributable to noncontrolling interest	3			3			3			—		*	—		*
Net income/(loss) attributable to controlling interest	536			54			111			482		NM	425		NM
Preferred stock dividends	13			2			2			11		NM	11		NM
Net income/(loss) available to common shareholders	$	523		$	52		$	110		$	471	NM	$	413	NM

Adjusted net income⁴	$	208		$	68		$	138		$	140	NM	$	70	51
Adjusted net income/loss available to common shareholders⁴	$	193		$	64		$	134		$	129	NM	$	59	44
Common stock information
EPS	$	0.95		$	0.17		$	0.35		$	0.78	NM	$	0.60	NM
Adjusted EPS⁴	$	0.35		$	0.20		$	0.43		$	0.15	67	$	(0.08)	19


Diluted shares	551			313			314			238		76	237		75
Key performance metrics
Net interest margin	2.84		%	2.90		%	3.21		%	(6)bp			(37)bp
Efficiency ratio	43.31		%	62.74		%	65.26		%	NM			NM
Adjusted efficiency ratio⁴	57.26		%	59.95		%	58.61		%	(269)			(135)
Effective income tax rate	—		%	18		%	24		%	NM			NM
Return on average assets	2.63		%	0.48		%	1.08		%	215			155
Adjusted return on average assets⁴	1.01		%	0.57		%	1.31		%	44			(30)
Return on average common equity (“ROCE")	28.49		%	4.50		%	9.50		%	NM			NM

Return on average tangible common equity (“ROTCE”)⁴	37.75		%	6.74		%	14.49		%	NM			NM
Adjusted return on average tangible common equity (“ROTCE”)⁴	13.90		%	8.26		%	17.73		%	564			(383)
Noninterest income as a % of total revenue	60.72		%	40.32		%	36.25		%	NM			NM
Adjusted noninterest income as a % of total revenue⁴	35.32		%	40.32		%	36.25		%	(500)			(93)
Balance Sheet (billions)
Average loans	$	60		$	34		$	30		$	26	77	$	30	NM
Average deposits	$	67		$	38		$	32		$	30	79	$	35	NM
Average assets	$	82		$	48		$	42		$	34	70	$	40	95
Average common equity	$	7		$	5		$	5		$	3	56	$	3	60
Asset Quality Highlights

Allowance to loans and leases ratio	1.65		%	1.64		%	0.62		%

Net charge-off ratio	0.44		%	0.20		%	0.19		%

Nonperforming loan and leases ratio	0.75		%	0.69		%	0.55		%
Capital Highlights (current quarter is an estimate)



Common Equity Tier 1	9.15		%	9.25		%	9.01		%
Tier 1	10.19		%	10.69		%	9.97		%
Total Capital	11.97		%	12.47		%	11.01		%
Leverage	8.25		%	8.55		%	9.05		%

Numbers may not foot due to rounding.

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

See footnote disclosures on page 22.

First Horizon National Corporation

Net interest income

Net interest income of $532 million increased $227 million from second quarter 2020 driven by the $225 million impact of the IBKC Merger and Branch Acquisition and included a net $44 million benefit, or 20 basis points of net interest margin related to net purchase accounting accretion. Net interest margin of 2.84% compares with 2.90% in the prior quarter, largely reflecting continued headwinds from the low-rate environment. Net interest margin results also included faster prepayment speeds and the impact of excess cash balances.

Loans and leases

Loan and lease balances at September 30, 2020 of $59.7 billion increased $27.0 billion from June 30, 2020, driven by the addition of the IBERIABANK loan portfolio and Branch Acquisition. Period-end results also reflect a $1.6 billion increase in loans to mortgage companies.

Deposits

Deposits of $68.4 billion at September 30, 2020, increased from $37.8 billion at June 30, 2020, driven by the impact of the IBKC Merger and Branch Acquisition. Results also reflect continued higher levels of customer liquidity. Interest bearing deposit costs of 36 basis points improved 2 basis points linked quarter, reflecting lower rates and pricing discipline.

Noninterest income

Noninterest income of $823 million increased $617 million from second quarter 2020 driven by the $623 million impact of the IBKC Merger and Branch Acquisition, which included $532 million of notable items. Adjusted noninterest income of $291 million increased $85 million driven by the addition of IBKC.*

Noninterest expense

Noninterest expense of $587 million increased $266 million from second quarter 2020 driven by the $170 million impact of the IBKC Merger and Branch Acquisition and included $116 million of notable items. Adjusted noninterest expense totaled $471 million in third quarter 2020 and reflected a net $8 million benefit from merger-related cost saves.*

Asset Quality

Net charge-offs of $67 million, or 44 basis points, compared with $17 million, or 20 basis points in second quarter 2020 largely reflecting the impact of the IBKC Merger and losses tied to the energy portfolio.

Nonperforming loans of $447 million compared with $226 million in second quarter 2020, largely reflecting the impact of the IBKC Merger. Third quarter 2020 allowance to nonperforming coverage ratio at 221% compares with 238% from second quarter 2020. Third quarter 2020 nonperforming loans to loans ratio of 75 basis points compared with 69 basis points at second quarter 2020.

The allowance to loan ratio remained relatively stable at 1.65% up from 1.64% in the second quarter.

Provision for credit losses of $227 million increased $106 million from second quarter 2020 driven by a

$147 million notable item impact tied to the non-PCD loan portfolio impact of the IBKC Merger and Branch Acquisition. Adjusted provision for credit losses of $80 million decreased $41 million linked quarter.*

Capital

Estimated CET1 ratio of 9.15% in third quarter 2020 compared with 9.25% in second quarter 2020. There were no share repurchases in third quarter 2020.

Income tax

The effective tax rate of 0.41% in third quarter 2020 compared to 18.40% in the second quarter 2020 largely reflecting the impact of the IBKC Merger purchase accounting gain which is nontaxable. Excluding the impact from the merger, the adjusted tax rate was 23%.*

First Horizon National Corporation

Conference call information

Analysts, investors and interested parties may call toll-free starting at 8:15 a.m. CT on October 23 by dialing 1-888-317-6003 (if calling from the U.S.) or 412-317-6061 (if calling from outside the U.S) and entering access code 4874702. The conference call will begin at 8:30 a.m. CT.

Participants can also opt to listen to the live audio webcast with the accompanying slide presentation at http://ir.fhnc.com/Event.

A replay of the call will be available beginning at noon CT on October 23 until midnight CT on November 6. To listen to the replay, dial 1-877-344-7529 (U.S. callers) or 412-317-0088 (international callers); the access code is 10148078. A replay of the webcast will also be available at http://ir.fhnc.com/Event by midnight CT on October 23 and will be archived on the site for one year.

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.

First Horizon National Corporation

The non-GAAP measures presented in this earnings release 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, and various consolidated and segment results and performance measures and ratios adjusted for notable items.

Refer to the tabular reconciliation of non-GAAP to GAAP measures and presentation of the most comparable GAAP items beginning on page 23.

First Horizon National Corporation


FHN CONSOLIDATED INCOME STATEMENT
Quarterly, Unaudited

																3Q20 change vs.
(In millions, except per share data)	3Q20			2Q20			1Q20			4Q19			3Q19			2Q20					3Q19
																$		%	$		%
Interest income	$	598		$	347		$	378		$	404		$	407		$	251	72	$	191	47
Interest expense	66			41			76			93			107			25		61	(41)		(38)
Net interest income	532			305			303			311			301			227		74	231		77
Noninterest income:
Fixed income	111			112			96			81			78			(1)		(1)	33		42
Mortgage banking and title	66			4			2			4			2			62		NM	64		NM
Brokerage, trust, and insurance	30			22			23			22			22			8		36	8		36
Service charges and fees	50			35			36			39			40			15		43	10		25
Card and digital banking fees	17			12			12			14			13			5		42	4		31
Deferred compensation income	4			8			(10)			3			—			(4)		(50)	4		NM
Other noninterest income¹	546			12			15			20			17			534		NM	529		NM
Total noninterest income	823			206			175			183			172			617		NM	651		NM
Total revenue	1,355			512			478			495			472			843		NM	883		NM
Noninterest expense:
Personnel expenses:
Salaries and benefits	201			111			113			112			111			90		81	90		81
Incentives and commissions	126			79			81			63			55			47		59	71		NM
Deferred compensation expense	3			9			(10)			4			1			(6)		(67)	2		NM
Total personnel expenses	329			200			183			179			167			129		65	162		97
Occupancy and equipment	77			46			44			44			42			31		67	35		83
Outside services	78			38			38			54			47			40		NM	31		66
Amortization of intangible assets	15			5			5			6			6			10		NM	9		NM
Other noninterest expense	89			31			31			45			46			58		NM	43		93
Total noninterest expense	587			321			302			328			308			266		83	279		91
Pre-provision net revenue²	768			191			175			166			164			577		NM	604		NM
Provision for credit losses³	227			121			154			9			14			106		88	213		NM
Income before income taxes	541			69			21			157			150			472		NM	391		NM
Provision for income taxes	2			13			5			36			36			(11)		(85)	(34)		(94)
Net income	539			57			16			121			114			482		NM	425		NM
Net income attributable to noncontrolling interest	3			3			3			3			3			—		*	—		*
Net income attributable to controlling interest	536			54			14			118			111			482		NM	425		NM
Preferred stock dividends	13			2			2			2			2			11		NM	11		NM
Net income available to common shareholders	$	523		$	52		$	12		$	117		$	110		$	471	NM	$	413	NM
Common Share Data
EPS	$	0.95		$	0.17		$	0.04		$	0.38		$	0.35		$	0.78	NM	$	0.60	NM
Basic shares	550			312			312			311			312			238		76	238		76
Diluted EPS	$	0.95		$	0.17		$	0.04		$	0.37		$	0.35		$	0.78	NM	$	0.60	NM
Diluted shares	551			313			313			313			314			238		76	237		75

Effective tax rate	—		%	18		%	22		%	23		%	24		%

Numbers may not foot due to rounding.

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

See footnote disclosures on page 22.

First Horizon National Corporation


FHN ADJUSTED⁴FINANCIAL DATA - SEE NOTABLE ITEMS ON PAGE 9
Quarterly, Unaudited


																3Q20 change vs.
(In millions, except per share data)	3Q20			2Q20			1Q20			4Q19			3Q19			2Q20					3Q19
																$		%	$		%




Adjusted noninterest income:
Fixed income	$	111		$	112		$	96		$	81		$	78		$	(1)	(1)	$	33	42
Mortgage banking and title	66			4			2			4			2			62		NM	64		NM
Brokerage, trust, and insurance	30			22			23			22			22			8		36	8		36
Service charges and fees	50			35			36			39			40			15		43	10		25
Card and digital banking fees	17			12			12			14			13			5		42	4		31
Deferred compensation income	4			8			(10)			3			—			(4)		(50)	4		NM
Adjusted other noninterest income	14			12			15			20			17			2		17	(3)		(18)
Adjusted total noninterest income	$	291		$	206		$	175		$	183		$	172		$	85	41	$	119	69


Adjusted noninterest expense:
Adjusted personnel expenses:
Adjusted salaries and benefits	$	200		$	107		$	112		$	107		$	109		$	93	87	$	91	83
Adjusted Incentives and commissions	91			79			81			63			59			12		15	32		54
Deferred compensation expense	3			9			(10)			4			1			(6)		(67)	2		NM
Adjusted total personnel expenses	294			195			182			174			168			99		51	126		75
Adjusted occupancy and equipment	73			46			44			44			42			27		59	31		74
Adjusted outside services	46			33			37			36			35			13		39	11		31
Adjusted amortization of intangible assets	14			5			5			6			6			9		NM	8		NM
Adjusted other noninterest expense	45			27			28			31			25			18		67	20		80
Adjusted total noninterest expense	$	471		$	307		$	296		$	291		$	277		$	164	53	$	194	70

Adjusted pre-provision net revenue⁴	$	352		$	205		$	181		$	203		$	196		$	147	72	$	156	80

Adjusted provision for credit losses³	$	80		$	121		$	154		$	9		$	14		$	(41)	(34)	$	66	NM







Adjusted net income available to common shareholders	$	193		$	64		$	17		$	147		$	134		$	129	NM	$	59	44

Adjusted Common Share Data


Adjusted diluted EPS	$	0.35		$	0.20		$	0.05		$	0.47		$	0.43		$	0.15	75	$	(0.08)	(19)
Diluted shares	551			313			313			313			314			238		76	237		75

Adjusted effective tax rate	23		%	18		%	22		%	22		%	24		%

Numbers may not foot due to rounding.

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

See footnote disclosures on page 22.

First Horizon National Corporation


NOTABLE ITEMS
Quarterly, Unaudited



(In millions)	3Q20		2Q20		1Q20		4Q19		3Q19




Noninterest income:






Other noninterest income	$	(532)	$	—	$	—	$	—	$	—
Total noninterest income	$	(532)	$	—	$	—	$	—	$	—


Noninterest expense:
Personnel expenses:
Salaries and benefits	$	(1)	$	(5)	$	(1)	$	(4)	$	(3)
Incentives and commissions	(34)		—		—		—		4
Deferred compensation expense	—		—		—		—		—
Total personnel expenses	(35)		(5)		(1)		(4)		1
Occupancy and equipment	(4)		—		—		—		—
Outside services	(32)		(5)		(2)		(18)		(12)
Amortization of intangible assets	(1)		—		—		—		—
Other noninterest expense	(44)		(4)		(3)		(15)		(21)
Total noninterest expense	$	(116)	$	(14)	$	(6)	$	(37)	$	(31)





Provision for credit losses	$	(147)	$	—	$	—	$	—	$	—

Income before income taxes	$	(269)	$	14	$	6	$	37	$	31
Provision for income taxes	61		3		1		7		7




Net income/(loss) available to common shareholders	$	(331)	$	12	$	5	$	30	$	24



(Millions)	3Q20		2Q20		1Q20		4Q19		3Q19
Summary of Notable Items:
Purchase accounting gain	$	532	$	—	$	—	$	—	$	—
Merger/acquisition non-PCD provision expense	(147)		—		—		—		—
Merger/acquisition expense*	(101)		(14)		(6)		(16)		(9)
Charitable contributions	(15)		—		—		(11)		—
Other notable expenses	—		—		—		(10)		(22)




Total notable items	$	269	$	(14)	$	(6)	$	(37)	$	(31)

Numbers may not foot due to rounding

•3Q20 includes $20 million of charitable contributions to establish the First Horizon Louisiana Foundation.

First Horizon National Corporation


																3Q20 change vs.
FINANCIAL RATIOS	3Q20			2Q20			1Q20			4Q19			3Q19			2Q20		3Q19
Net interest margin	2.84		%	2.90		%	3.16		%	3.26		%	3.21		%	(2)	(12)
Return on average assets	2.63		%	.48		%	.15		%	1.12		%	1.08		%	NM	NM
Adjusted return on average assets⁴	1.01		%	.57		%	.19		%	1.40		%	1.31		%	77	(23)
Return on average common equity (“ROCE”)	28.49		%	4.50		%	1.05		%	9.97		%	9.50		%	NM	NM

Return on average tangible common equity (“ROTCE”)⁴	37.75		%	6.74		%	1.59		%	15.03		%	14.49		%	NM	NM
Adjusted return on average tangible common equity (“ROTCE”)⁴	13.90		%	8.26		%	2.19		%	18.88		%	17.73		%	68	(22)
Noninterest income as a % of total revenue	60.72		%	40.32		%	36.59		%	37.05		%	36.25		%	51	68
Adjusted noninterest income as a % of total revenue⁴	35.32		%	40.32		%	36.59		%	37.05		%	36.25		%	(12)	(3)
Efficiency ratio	43.31		%	62.74		%	63.26		%	66.35		%	65.26		%	(31)	(34)
Adjusted efficiency ratio⁴	57.26		%	59.95		%	62.05		%	58.88		%	58.61		%	(4)	(2)

CAPITAL - PERIOD END (PRELIMINARY)
CET1 capital ratio	9.15		%	9.25		%	8.54		%	9.20		%	9.01		%	(1)	2
Tier 1 capital ratio	10.19		%	10.69		%	9.52		%	10.15		%	9.97		%	(5)	2
Total capital ratio	11.97		%	12.47		%	10.78		%	11.22		%	11.01		%	(4)	9
Tier 1 leverage ratio	8.25		%	8.55		%	9.00		%	9.04		%	9.05		%	(4)	(9)
Risk-weighted assets (“RWA”) (millions)	$	65		$	37		$	40		$	37		$	37		76	76
Total equity to total assets	9.81		%	10.71		%	10.71		%	11.72		%	11.43		%	(8)	(14)
Tangible common equity/tangible assets (“TCE/TA”)⁴	6.78		%	6.63		%	6.81		%	7.48		%	7.20		%	2	(6)
Period-end shares outstanding (millions)	555			312			312			311			311			78	78
Cash dividends declared per common share	$	0.15		$	0.15		$	0.15		$	0.14		$	0.14		*	7
Book value per common share	$	13.30		$	14.96		$	14.96		$	15.04		$	14.80		(11)	(10)
Tangible book value per common share⁴	$	9.92		$	9.99		$	9.96		$	10.02		$	9.76		(1)	2


SELECTED BALANCE SHEET DATA
Loans-to-deposit ratio (period-end balances)	87.28		%	86.62		%	96.97		%	95.78		%	97.86		%	1	(11)
Loans-to-deposit ratio (average balances)	89.59		%	90.52		%	92.83		%	93.68		%	92.73		%	(1)	(3)
Full-time equivalent associates	8,121			5,006			4,969			5,005			5,116			62	59

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

See footnote disclosures on page 22..

First Horizon National Corporation

FHN CONSOLIDATED PERIOD-END BALANCE SHEET

Quarterly, Unaudited


											3Q20 change vs.
(In millions)	3Q20		2Q20		1Q20		4Q19		3Q19		2Q20					3Q19
											$		%	$		%
Assets:
Loans and leases:
Commercial, financial, and industrial (C&I)	$	33,656	$	21,394	$	22,124	$	20,051	$	20,294	$	12,262	57	$	13,362	66
Commercial real estate	12,511		4,813		4,640		4,337		4,229		7,698		NM	8,282		NM
Consumer real estate	12,328		6,052		6,119		6,177		6,245		6,276		NM	6,083		97
Credit card and other	1,212		449		495		496		493		763		NM	719		NM
Loans and leases, net of unearned income	59,707		32,709		33,378		31,061		31,261		26,998		83	28,446		91
Loans held for sale	1,051		746		596		594		555		305		41	496		89
Investment securities	7,996		5,476		4,545		4,445		4,416		2,520		46	3,580		81
Trading securities	1,386		1,116		1,878		1,346		1,395		270		24	(9)		(1)
Interest-bearing deposits with banks	5,443		3,136		671		482		364		2,307		74	5,079		NM
Federal funds sold and securities purchased under agreements to resell	593		415		592		633		746		178		43	(153)		(21)
Total interest earning assets	76,176		43,598		41,659		38,562		38,737		32,578		75	37,439		97
Cash and due from banks	1,075		604		538		634		750		471		78	325		43
Goodwill and other intangible assets, net	1,876		1,552		1,558		1,563		1,569		324		21	307		20
Premises and equipment, net	756		448		448		455		452		308		69	304		67
Allowance for loan and lease losses⁵	(988)		(538)		(444)		(200)		(193)		(450)		(84)	(795)		NM
Other assets	4,135		2,980		3,439		2,297		2,403		1,155		39	1,732		72
Total assets	$	83,030	$	48,645	$	47,197	$	43,311	$	43,718	$	34,385	71	$	39,312	90

Liabilities and Shareholders' Equity:
Deposits:
Savings	$	26,573	$	13,532	$	13,860	$	11,665	$	11,489	$	13,041	96	$	15,084	NM
Time deposits	5,526		2,656		3,058		3,618		4,176		2,870		NM	1,350		32
Other interest-bearing deposits	14,925		9,784		8,561		8,717		8,011		5,141		53	6,914		86
Total interest-bearing deposits	47,025		25,972		25,480		24,001		23,676		21,053		81	23,349		99
Trading liabilities	477		233		453		506		720		244		NM	(243)		(34)
Short-term borrowings	2,142		2,392		5,325		3,518		3,948		(250)		(10)	(1,806)		(46)
Term borrowings	2,162		2,032		793		791		1,195		130		6	967		81
Total interest-bearing liabilities	51,805		30,628		32,050		28,816		29,539		21,177		69	22,266		75
Noninterest-bearing deposits	21,384		11,788		8,940		8,429		8,269		9,596		81	13,115		NM
Other liabilities	1,696		1,020		1,152		990		914		676		66	782		86
Total liabilities	74,885		43,436		42,142		38,235		38,722		31,449		72	36,163		93
Shareholders' Equity:
Preferred stocks	470		240		96		96		96		230		96	374		NM
Common stocks	347		195		195		195		194		152		78	153		79
Capital surplus	5,061		2,941		2,939		2,931		2,925		2,120		72	2,136		73
Retained earnings⁵	2,111		1,672		1,667		1,798		1,726		439		26	385		22
Accumulated other comprehensive loss, net	(140)		(135)		(136)		(240)		(241)		(5)		(4)	101		42
Combined shareholders' equity	7,849		4,913		4,760		4,781		4,701		2,936		60	3,148		67
Noncontrolling interest	295		295		295		295		295		—		*	—		*
Total shareholders' equity	8,144		5,208		5,056		5,076		4,996		2,936		56	3,148		63
Total liabilities and shareholders' equity	$	83,030	$	48,645	$	47,197	$	43,311	$	43,718	$	34,385	71	$	39,312	90

Numbers may not foot due to rounding.

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

See footnote disclosures on page 22.

First Horizon National Corporation

FHN CONSOLIDATED AVERAGE BALANCE SHEET

Quarterly, Unaudited


											3Q20 change vs.
(In millions)	3Q20		2Q20		1Q20		4Q19		3Q19		2Q20					3Q19
											$		%	$		%
Assets:
Loans and leases:
Commercial, financial, and industrial (C&I)	$	34,051	$	22,694	$	19,470	$	19,740	$	18,966	$	11,357	50	$	15,085	80
Commercial real estate	12,414		4,710		4,422		4,264		4,269		7,704		NM	8,145		NM
Consumer real estate	12,444		6,087		6,134		6,194		6,283		6,357		NM	6,161		98
Credit card and other	1,209		476		498		509		498		733		NM	711		NM
Loans and leases, net of unearned income	60,118		33,968		30,524		30,706		30,016		26,150		77	30,102		NM
Loans held-for-sale	985		731		590		582		455		254		35	530		NM
Investment securities	8,580		4,531		4,457		4,438		4,398		4,049		89	4,182		95
Trading securities	1,194		1,420		1,831		1,264		1,391		(226)		(16)	(197)		(14)
Interest-bearing deposits with banks	3,616		1,620		548		586		546		1,996		NM	3,070		NM
Federal funds sold and securities purchased under agreements to resell	500		422		827		656		572		78		18	(72)		(13)
Total interest earning assets	74,992		42,692		38,778		38,232		37,379		32,300		76	37,613		NM
Cash and due from banks	1,028		562		610		610		596		466		83	432		72
Goodwill and other intangibles assets, net	1,794		1,555		1,560		1,566		1,572		239		15	222		14
Premises and equipment, net	747		452		451		451		452		295		65	295		65
Allowances for loan and lease losses⁵	(980)		(476)		(354)		(196)		(197)		(504)		NM	(783)		NM
Other assets	4,103		3,150		2,507		2,223		2,139		953		30	1,964		92
Total assets	$	81,683	$	47,934	$	43,552	$	42,886	$	41,941	$	33,749	70	$	39,742	95

Liabilities and shareholders' equity:
Deposits:
Savings	$	25,648	$	14,118	$	12,117	$	11,580	$	11,696	$	11,530	82	$	13,952	NM
Time deposits	5,783		2,836		3,357		3,934		4,330		2,947		NM	1,453		34
Other interest-bearing deposits	14,771		9,256		8,743		8,721		8,110		5,515		60	6,661		82
Total interest-bearing deposits	46,202		26,211		24,216		24,235		24,136		19,991		76	22,066		91
Trading liabilities	360		352		751		586		501		8		2	(141)		(28)
Short-term borrowings	2,469		2,603		3,211		2,709		2,145		(134)		(5)	324		15
Term borrowings	2,172		1,426		791		928		1,186		746		52	986		83
Total interest-bearing liabilities	51,202		30,593		28,967		28,458		27,967		20,609		67	23,235		83
Noninterest-bearing deposits	20,904		11,316		8,666		8,543		8,236		9,588		85	12,668		NM
Other liabilities	1,505		908		915		845		775		597		66	730		94
Total liabilities	73,611		42,816		38,550		37,846		36,979		30,795		72	36,632		99
Shareholders' Equity:
Preferred stock	468		150		96		96		96		318		NM	372		NM
Common stock	345		195		195		195		195		150		77	150		77
Capital surplus	5,041		2,941		2,935		2,928		2,934		2,100		71	2,107		72
Retained earnings⁵	2,025		1,672		1,687		1,766		1,695		353		21	330		19
Accumulated other comprehensive loss, net	(103)		(135)		(206)		(240)		(253)		32		24	150		59
Combined shareholders' equity	7,777		4,822		4,707		4,744		4,667		2,955		61	3,110		67
Noncontrolling interest	295		295		295		295		295		—		*	—		*
Total shareholders' equity	8,072		5,118		5,002		5,040		4,962		2,954		58	3,110		63
Total liabilities and shareholders' equity	$	81,683	$	47,934	$	43,552	$	42,886	$	41,941	$	33,749	70	$	39,742	95

Numbers may not foot due to rounding.

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

See footnote disclosures on page 22.

First Horizon National Corporation

FHN CONSOLIDATED NET INTEREST INCOME

Quarterly, Unaudited


											3Q20 change vs.
(In millions)	3Q20		2Q20		1Q20		4Q19		3Q19		2Q20					3Q19
											$		%	$		%
Interest Income:
Loans and leases, net of unearned income:
Commercial	$	419	$	243	$	257	$	280	$	281	$	176	72	$	138	49
Consumer	141		65		71		76		78		76		NM	63		81
Loans and leases, net of unearned income	560		308		329		356		358		252		82	202		56
Loans held-for-sale	8		7		7		7		6		1		14	2		33
Investment securities	25		25		28		29		29		—		*	(4)		(14)
Trading securities	6		9		13		10		11		(3)		(33)	(5)		(45)
Interest-bearing deposits with banks	1		—		2		2		3		1		NM	(2)		(67)
Federal funds sold and securities purchased under agreements	—		—		2		3		3		—		NM	(3)		NM
Interest income	$	601	$	349	$	381	$	407	$	409	$	252	72	$	192	47

Interest Expense:
Interest-bearing deposits:
Savings	$	25	$	13	$	26	$	30	$	37	$	12	92	$	(12)	(32)
Time deposits	10		9		14		19		22		1		11	(12)		(55)
Other interest-bearing deposits	7		3		14		18		19		4		NM	(12)		(63)
Total interest-bearing deposits	42		25		54		67		79		17		68	(37)		(47)
Trading liabilities	1		1		3		3		3		—		*	(2)		(67)
Short-term borrowings	1		1		10		12		12		—		*	(11)		(92)
Term borrowings	22		14		8		10		14		8		57	8		57
Interest expense	66		41		76		93		107		25		61	(41)		(38)
Net interest income - tax equivalent basis	535		308		305		314		302		227		74	233		77
Fully taxable equivalent adjustment	(3)		(3)		(2)		(2)		(2)		—		*	(1)		(50)
Net interest income	$	532	$	305	$	303	$	311	$	301	$	227	74	$	231	77

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.

Numbers may not foot due to rounding.

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

See footnote disclosures on page 22.

First Horizon National Corporation

FHN CONSOLIDATED AVERAGE BALANCE SHEET: YIELDS AND RATES

Quarterly, Unaudited


	3Q20		2Q20		1Q20		4Q19		3Q19

Assets:
Earning assets:
Loans and leases, net of unearned income:
Commercial	3.59	%	3.56	%	4.33	%	4.63	%	4.78	%
Consumer	4.11		4.00		4.33		4.51		4.55
Loans and leases, net of unearned income	3.70		3.65		4.33		4.60		4.73
Loans held-for-sale	3.36		3.61		4.67		4.85		5.33
Investment securities	1.21		2.22		2.50		2.60		2.62
Trading securities	2.08		2.48		2.91		3.01		3.06
Interest-bearing deposits with banks	0.09		0.09		1.13		1.60		1.96
Federal funds sold and securities purchased under agreements to resell	0.04		(0.06)		1.13		1.52		2.04
Interest income/total earning assets	3.19	%	3.29	%	3.94	%	4.22	%	4.35	%
Liabilities:
Interest-bearing liabilities:
Interest-bearing deposits:
Savings	0.38	%	0.36	%	0.87	%	1.04	%	1.26	%
Time deposits	0.72		1.45		1.80		2.06		2.15
Other interest-bearing deposits	0.20		0.13		0.65		0.81		0.94
Total interest-bearing deposits	0.36		0.38		0.90		1.10		1.29
Trading liabilities	0.77		1.11		1.76		2.02		2.33
Short-term borrowings	0.27		0.22		1.24		1.74		2.13
Term borrowings	3.98		3.96		4.01		4.52		4.64
Interest expense/total interest-bearing liabilities	0.51		0.54		1.05		1.29		1.52
Net interest spread	2.68	%	2.75	%	2.89	%	2.93	%	2.83	%
Effect of interest-free sources used to fund earning assets	0.16		0.15		0.27		0.33		0.38
Net interest margin	2.84	%	2.90	%	3.16	%	3.26	%	3.21	%

Total loan yield	3.70	%	3.65	%	4.33	%	4.60	%	4.73	%
Total deposit cost	0.25	%	0.27	%	0.67	%	0.82	%	0.96	%
Total funding cost	0.36	%	0.40	%	0.81	%	1.00	%	1.17	%

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

Earning assets yields are expressed net of unearned income.

Loan yields include loan fees, cash basis interest income, and loans on nonaccrual status.

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

See footnote disclosures on page 22.

First Horizon National Corporation


FHN CONSOLIDATED NONPERFORMING LOANS AND LEASES ("NPL")
Quarterly, Unaudited

	As of																					3Q20 change vs.
(In millions, except ratio data)	3Q20			2Q20			1Q20			4Q19			3Q19			2Q20					3Q19
																$		%	$		%
Nonperforming loans and leases
Commercial, financial, and industrial (C&I)	$	213		$	127		$	96		$	74		$	77		$	85	67	$	136	NM
Commercial real estate	51			2			2			2			2			49		NM	49		NM
Consumer real estate	180			96			91			86			94			84		87	87		93
Credit card and other	3			—			—			—			—			3		NM	3		NM
Total nonperforming loans and leases	$	447		$	226		$	190		$	162		$	172		$	221	98	$	274	NM

Asset Quality Ratio
Nonperforming loans and leases to loans and leases
Commercial, financial, and industrial (C&I)	0.63		%	0.60		%	0.43		%	0.37��		%	0.38		%
Commercial real estate	0.41		%	0.04		%	0.05		%	0.04		%	0.05		%
Consumer real estate	1.46		%	1.59		%	1.49		%	1.39		%	1.50		%
Credit card and other	0.24		%	0.06		%	0.07		%	0.07		%	0.07		%
Total nonperforming loans and leases to loans and leases	0.75		%	0.69		%	0.57		%	0.52		%	0.55		%

Numbers may not foot due to rounding.

First Horizon National Corporation


FHN CONSOLIDATED LOANS AND LEASES 90 DAYS OR MORE PAST DUE AND ACCRUING
Quarterly, Unaudited

	As of																3Q20 change vs.
(In millions)	3Q20		2Q20		1Q20		4Q19		3Q19		2Q20			3Q19
											$		%	$		%
Loans and leases 90 days or more past due and accruing
Commercial, financial, and industrial (C&I)	$	—	$	—	$	—	$	2	$	2	$	—	(48)	$	(2)	(93)
Commercial real estate	—		—		—		—		—		—		NM	—		NM
Consumer real estate	14		13		12		18		18		1		6	(4)		(23)
Credit card and other	1		1		2		2		1		(1)		(35)	—		(33)
Total loans and leases 90 days or more past due and accruing	$	15	$	14	$	14	$	22	$	21	$	—	1	$	(6)	(31)

Numbers may not foot due to rounding.

First Horizon National Corporation


FHN CONSOLIDATED NET CHARGE-OFFS
Quarterly, Unaudited

	As of																					3Q20 change vs.
(In millions, except ratio data)	3Q20			2Q20			1Q20			4Q19			3Q19			2Q20					3Q19
Charge-off, Recoveries and Related Ratios																$		%	$		%
Gross Charge-offs
Commercial, financial, and industrial (C&I)	$	69		$	18		$	7		$	5		$	19		$	51	NM	$	51	NM
Commercial real estate	4			—			1			—			—			3		NM	3		NM
Consumer real estate	2			2			2			2			1			—		(7)	—		25
Credit card and other	4			3			4			4			4			1		31	—		(10)
Total gross charge-offs	$	78		$	23		$	13		$	12		$	24		$	55	NM	$	54	NM
Gross Recoveries
Commercial, financial, and industrial (C&I)	$	(3)		$	(1)		$	(1)		$	(2)		$	(3)		$	(2)	NM	$	—	1
Commercial real estate	(2)			—			(1)			—			—			(2)		NM	(2)		NM
Consumer real estate	(5)			(4)			(4)			(6)			(5)			(1)		(33)	—		(5)
Credit card and other	(1)			(1)			(1)			(1)			(1)			—		8	—		21
Total gross recoveries	$	(12)		$	(6)		$	(6)		$	(9)		$	(10)		$	(5)	(87)	$	(2)	(21)
Net Charge-offs (Recoveries)
Commercial, financial, and industrial (C&I)	$	66		$	17		$	6		$	3		$	15		$	49	NM	$	51	NM
Commercial real estate	1			—			—			—			—			1		NM	1		NM
Consumer real estate	(3)			(2)			(1)			(3)			(4)			(1)		(72)	—		3
Credit card and other	3			2			3			3			3			1		58	—		(5)
Total net charge-offs	$	67		$	17		$	7		$	3		$	15		$	50	NM	$	52	NM

Annualized Net Charge-off (Recovery) Rates
Commercial, financial, and industrial (C&I)	0.77		%	0.30		%	0.12		%	0.07		%	0.32		%
Commercial real estate	0.04		%	(0.01)		%	—		%	(0.01)		%	0.02		%
Consumer real estate	(0.11)		%	(0.13)		%	(0.08)		%	(0.21)		%	(0.23)		%
Credit card and other	0.83		%	1.35		%	2.12		%	2.29		%	2.11		%
Total loans and leases	0.44		%	0.20		%	0.10		%	0.04		%	0.19		%

Numbers may not foot due to rounding.

First Horizon National Corporation


FHN CONSOLIDATED ALLOWANCE FOR LOAN AND LEASE LOSSES AND RESERVE FOR UNFUNDED COMMITMENTS
Quarterly, Unaudited

	As of																3Q20 Changes vs.
(In millions, except ratio data)	3Q20		2Q20		1Q20		4Q19		3Q19		2Q20			3Q19
Summary of Changes in the Components of the Allowance For Credit Losses											$		%	$		%
Allowance for loan and lease losses - beginning	$	538	$	444	$	200	$	193	$	193	$	93	21	$	345	NM
Cumulative effect of change in accounting principle:
Commercial, financial, and industrial (C&I)	—		—		19		—		—		—		NM	—		NM
Commercial real estate	—		—		(7)		—		—		—		NM	—		NM
Consumer real estate	—		—		93		—		—		—		NM	—		NM
Credit card and other	—		—		2		—		—		—		NM	—		NM
Total cumulative effect of change in accounting principles	—		—		106		—		—		—		NM	—		NM
Allowance for loan and lease losses - beginning, adjusted	$	538	$	444	$	307	$	193	$	193	$	93	21	$	345	NM
Acquired purchased credit deteriorated allowance for loan and lease losses:
Commercial, financial, and industrial (C&I)	138		—		—		—		—		138		NM	138		NM
Commercial real estate	100		—		—		—		—		100		NM	100		NM
Consumer real estate	44		—		—		—		—		44		NM	44		NM
Credit card and other	5		—		—		—		—		5		NM	5		NM
Total acquired purchased credit deteriorated allowance for loan and lease losses	287		—		—		—		—		287		NM	287		NM
Charge-offs:
Commercial, financial, and industrial (C&I)	(69)		(18)		(7)		(5)		(19)		(51)		NM	(51)		NM
Commercial real estate	(4)		—		(1)		—		—		(3)		NM	(3)		NM
Consumer real estate	(2)		(2)		(2)		(2)		(1)		—		7	—		(25)
Credit card and other	(4)		(3)		(4)		(4)		(4)		(1)		(31)	—		10
Total charge-offs	(78)		(23)		(13)		(12)		(24)		(55)		NM	(54)		NM
Recoveries:
Commercial, financial, and industrial (C&I)	3		1		1		2		3		2		NM	—		(1)
Commercial real estate	2		—		1		—		—		2		NM	2		NM
Consumer real estate	5		4		4		6		5		1		33	—		5
Credit card and other	1		1		1		1		1		—		(8)	—		(21)
Total Recoveries	12		6		6		9		10		5		87	2		21
Provision for loan and lease losses:
Commercial, financial, and industrial (C&I)*	99		81		119		12		13		18		22	86		NM
Commercial real estate*	52		10		19		—		3		42		NM	49		NM
Consumer real estate*	74		19		—		(6)		(4)		55		NM	78		NM
Credit card and other*	5		—		7		3		3		5		NM	2		62
Total provision for loan and lease losses*:	230		110		145		10		15		120		NM	215		NM
Allowance for loan and lease losses - ending	$	988	$	538	$	444	$	200	$	193	$	450	84	$	795	NM

Reserve for unfunded commitments - beginning	$	50	$	39	$	6	$	7	$	8	$	11	28	$	43	NM
Cumulative effect of change in accounting principle	—		—		24		—		—		—		NM	—		NM
Acquired reserve for unfunded commitments	41		—		—		—		—		41		NM	41		NM
Provision for unfunded commitments	(3)		11		9		(1)		(1)		(14)		NM	(2)		NM
Reserve for unfunded commitments - ending	$	89	$	50	$	39	$	6	$	7	$	38	76	$	82	NM
Total allowance for credit losses- ending	$	1,077	$	588	$	484	$	206	$	200	$	488	83	$	877	NM

Numbers may not foot due to rounding. * 3Q20 includes $30 million, $44 million, $70 million, and $3 million recognized within the C&I, Commercial real estate, Consumer real estate, and Credit card and other loan and leases portfolios, respectively, of provision expense associated with the recognition of Non-PCD provision related to mergers/acquisitions.

First Horizon National Corporation


FHN CONSOLIDATED ASSET QUALITY RATIOS - ALLOWANCE FOR LOAN AND LEASE LOSSES
Quarterly, Unaudited

	As of
	3Q20		2Q20		1Q20		4Q19		3Q19

Allowance for loans and lease losses to loans and leases
Commercial, financial, and industrial (C&I)	1.45	%	1.49	%	1.15	%	0.61	%	0.56	%
Commercial real estate	1.66	%	1.19	%	1.03	%	0.83	%	0.84	%
Consumer real estate	2.15	%	2.38	%	2.01	%	0.46	%	0.49	%
Credit card and other	2.11	%	4.03	%	3.91	%	2.68	%	2.58	%
Total allowance for loans and lease losses to loans and leases	1.65	%	1.64	%	1.33	%	0.64	%	0.62	%
Allowance for loans and lease losses to nonperforming loans and leases
Commercial, financial, and industrial (C&I)	230	%	250	%	265	%	165	%	149	%
Commercial real estate	407	%	2,771	%	2,175	%	1,979	%	1,839	%
Consumer real estate	147	%	149	%	135	%	33	%	33	%
Credit card and other	890	%	7,114	%	5,368	%	3,975	%	3,691	%
Total allowance for loans and lease losses to nonperforming loans and leases	221	%	238	%	234	%	124	%	112	%
Allowance for loans and lease losses to net charge offs
Commercial, financial, and industrial (C&I)	186	%	463	%	1,088	%	925	%	187	%
Commercial real estate	4,031	%	(15,040)	%	143,661	%	(11,151)	%	4,770	%
Consumer real estate	(1,919)	%	(1,770)	%	(2,456)	%	(214)	%	(216)	%
Credit card and other	255	%	282	%	183	%	114	%	121	%
Total allowance for loans and lease losses to net charge offs	373	%	805	%	1,533	%	1,776	%	333	%

First Horizon National Corporation

FHN REGIONAL BANKING

Quarterly, Unaudited


																3Q20 change vs.
	3Q20			2Q20			1Q20			4Q19			3Q19			2Q20					3Q19
																$/bp		%	$/bp		%
Income Statement (millions)
Net interest income	$	584		$	350		$	300		$	311		$	302		$	234	67	$	282	93
Noninterest income	172			79			82			90			86			93		NM	86		NM
Total revenue	756			429			382			400			388			327		76	368		95
Noninterest expense	374			192			203			203			194			182		95	180		93
Pre-provision net revenue²	383			236			179			197			194			147		62	189		97
Provision for credit losses³	227			120			155			14			20			107		89	207		NM
Income before income tax expense	155			117			25			183			175			38		32	(20)		(11)
Income tax expense	35			27			4			43			42			8		30	(7)		(17)
Net income	$	121		$	90		$	20		$	140		$	133		$	31	34	$	(12)	(9)

Average Balances (billions)
Total loans and leases	$	59.11		$	33.11		$	29.61		$	29.73		$	28.97		$	26.00	79	$	30.14	NM
Interest-earning assets	59.45			33.16			29.66			29.78			29.01			26.29		79	30.44		NM
Total assets	64.38			35.74			32.18			32.46			31.63			28.64		80	32.75		NM
Total deposits	63.47			33.79			30.58			30.42			30.05			29.68		88	33.42		NM

Key Metrics
Net interest margin⁶	3.92		%	4.27		%	4.09		%	4.17		%	4.16		%	(35)		(8)	(24)		(6)
Efficiency ratio	49.40			44.87			53.06			50.70			49.94			453		10	(54)		(1)
Loans-to-deposits ratio (period-end balances)	0.91			0.93			1.06			0.98			1.01			(2)		(2)	(10)		(10)
Loans-to-deposits ratio (average-end balances)	0.93			0.98			0.97			0.98			0.96			(5)		(5)	(3)		(3)
Return on average assets (annualized)	0.75			1.02			0.26			1.71			1.67			(27)		(26)	(92)		(55)
Return on allocated equity⁷	14.74			11.64			2.72			18.14			17.52			310		27	(278)		(16)
Financial center locations	493			269			269			269			270			224		83	223		83

Numbers may not add to total due to rounding.

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

See footnote disclosures on page 22.

First Horizon National Corporation

FHN FIXED INCOME

Quarterly, Unaudited


																3Q20 change vs.
	3Q20			2Q20			1Q20			4Q19			3Q19			2Q20					3Q19
																$/bp		%	$/bp		%
Income Statement (millions)
Net interest income	$	12		$	14		$	11		$	7		$	5		$	(2)	(14)	$	7	NM
Noninterest income	111			113			96			81			78			(2)		(2)	33		42
Total revenue	122			127			107			88			83			(5)		(4)	39		47
Noninterest expense	67			83			81			62			68			(16)		(19)	(1)		(1)


Income before income tax expense	55			44			26			26			16			11		25	39		NM
Income tax expense	13			11			6			6			4			2		18	9		NM
Net income	$	42		$	33		$	19		$	20		$	12		$	9	27	$	30	NM

Average Balance Sheet (billions)
Interest earning assets	$	2.34		$	2.63		$	3.27		$	2.57		$	2.47		$	(0.29)	(11)	$	(0.13)	(5)
Total assets	3.00			3.26			3.76			2.99			2.88			(0.26)		(8)	0.12		4

Key Metrics
Fixed income product average daily revenue (thousands)	$	1,545		$	1,592		$	1,264		$	1,061		$	994		(47)		(3)	551		55
Net interest margin⁶	2.00		%	2.07		%	1.36		%	1.15		%	0.88		%	(7)		(3)	112		NM
Efficiency ratio	55.05			65.49			76.02			70.23			81.31			(1,044)		(16)	(2,626)		(32)
Return on average assets	5.51			4.08			2.08			2.65			1.63			143		35	388		NM
Return on allocated equity⁷	82.03			65.97			37.19			39.91			23.60			1,606		24	5,843		NM

FHN CORPORATE

Quarterly, Unaudited


																	3Q20 change vs.
	3Q20		2Q20		1Q20		4Q19		3Q19		2Q20					3Q19
											$		%	$		%
Income Statement (millions)
Net interest income/(expense)	$	(69)	$	(63)	$	(13)	$	(13)	$	(13)	$	(6)	(10)	$	(56)	NM
Noninterest income¹	540		13		(4)		11		7		527		NM	533		NM
Total revenues	470		(50)		(17)		(1)		(6)		520		NM	476		NM
Noninterest expense	143		42		14		58		42		101		NM	101		NM
Income/(loss) before income taxes	328		(93)		(31)		(60)		(48)		421		NM	376		NM
Income tax expense (benefit)	(47)		(25)		(6)		(15)		(12)		(22)		(88)	(35)		NM
Net income/(loss)	$	374	$	(68)	$	(25)	$	(44)	$	(37)	$	442	NM	$	411	NM

Average Balance Sheet (billions)
Interest bearing assets	12.47		6.12		5.01		4.98		4.92		$	6.35	NM	$	7.55	NM
Total assets	13.60		8.16		6.78		6.53		6.43		5.44		67	7.17		NM

Numbers may not foot due to rounding. Certain previously reported amounts have been reclassified to agree with current presentation. See footnote disclosures on page 22.

First Horizon National Corporation

FHN NON-STRATEGIC

Quarterly, Unaudited


																3Q20 change vs.
	3Q20			2Q20			1Q20			4Q19			3Q19			2Q20					3Q19
																$/bp		%	$/bp		%
Income Statement (millions)
Net interest income	$	6		$	6		$	5		$	6		$	6		$	—	*	$	—	*
Noninterest income	—			1			1			1			1			(1)		NM	(1)		NM
Total revenue	6			6			6			7			7			—		*	(1)		(14)
Noninterest expense	3			3			4			5			4			—		*	(1)		(25)
Pre-provision net revenue²	3			3			2			2			2			—		*	1		50
Provision for credit losses³	—			2			—			(5)			(5)			(2)		NM	5		NM
Income before income tax expense	3			1			2			8			8			2		NM	(5)		(63)
Income tax expense	1			—			1			2			2			1		NM	(1)		(50)
Net income	$	2		$	1		$	2		$	6		$	6		$	1	NM	$	(4)	(67)

Average Balance Sheet (billions)
Total assets	0.71			0.77			0.83			0.91			0.99			$	(0.06)	(8)	$	(0.28)	(28)



Key Statistics
Net interest margin⁶	3.22		%	2.83		%	2.41		%	2.67		%	2.47		%	39		14	75		30
Efficiency ratio	50.95			53.62			65.26			66.85			65.85			(267)		(5)	(15)		(23)
Return on average assets	1.39			0.50			0.89			2.51			2.35			89		NM	(1)		(41)
Return on allocated equity⁷	28.75			9.38			15.00			37.00			32.08			1,937		NM	(3)		(10)

Numbers may not foot due to rounding

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

FOOTNOTES

¹3Q20 includes a $532 million purchase accounting gain from FHN's merger with IBERIABANK.

²Pre-provision net revenue is a non-GAAP measure and is reconciled to income before income taxes (GAAP) in the table.

³Beginning in 3Q20 FHN began recording credit expense on unfunded commitments as a component of provision for credit losses. Prior period amounts have been reclassified from other noninterest expense.

⁴Represents a non-GAAP measure and is reconciled to the nearest GAAP measure in the non-GAAP to GAAP reconciliations beginning on page 23.

⁵Effective 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 and lease losses of $106 million and a net decrease to retained earnings of $96 million.

⁶Net interest margin is computed using total NII adjusted for FTE assuming a statutory federal income tax rate of 21 percent, and, where applicable state taxes.

⁷Segment equity is allocated based on an internal allocation methodology.

First Horizon National Corporation


FHN NON-GAAP TO GAAP RECONCILIATION
Quarterly, Unaudited


(In millions, except per share data)	3Q20			2Q20			4Q19			4Q19			3Q19

Tangible Common Equity (Non-GAAP)
(A) Total equity (GAAP)	$	8,144		$	5,208		$	5,056		$	5,076		$	4,996
Less: Noncontrolling interest (a)	295			295			295			295			295
Less: Preferred stock (a)	470			240			96			96			96
(B) Total common equity	$	7,378		$	4,673		$	4,665		$	4,685		$	4,605
Less: Intangible assets (GAAP) (b)	1,876			1,552			1,558			1,563			1,569
(C) Tangible common equity (Non-GAAP)	$	5,502		$	3,120		$	3,107		$	3,122		$	3,036

Tangible Assets (Non-GAAP)
(D) Total assets (GAAP)	$	83,030		$	48,645		$	47,197		$	43,311		$	43,718
Less: Intangible assets (GAAP) (b)	1,876			1,552			1,558			1,563			1,569
(E) Tangible assets (Non-GAAP)	$	81,154		$	47,092		$	45,640		$	41,748		$	42,148












Period-end Shares Outstanding
(F) Period-end shares outstanding	555			312			312			311			311

Ratios


(A)/(D) Total equity to total assets (GAAP)	9.81		%	10.71		%	10.71		%	11.72		%	11.43		%
(C)/(E) Tangible common equity to tangible assets (“TCE/TA”) (Non-GAAP)	6.78		%	6.63		%	6.81		%	7.48		%	7.20		%
(B)/(F) Book value per common share (GAAP)	$	13.30		$	14.96		$	14.96		$	15.04		$	14.80
(C)/(F) Tangible book value per common share (Non-GAAP)	$	9.92		$	9.99		$	9.96		$	10.02		$	9.76

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

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

Numbers may not foot due to rounding.

First Horizon National Corporation


FHN NON-GAAP TO GAAP RECONCILIATION
Quarterly, Unaudited
	3Q20												2Q20												1Q20												4Q19				3Q19
(In millions, except per share data)	GAAP		Notable Items		Non-GAAP				GAAP		Notable Items		Non-GAAP				GAAP		Notable Items		Non-GAAP				GAAP		Notable Items		Non-GAAP				GAAP		Notable Items		Non-GAAP

Interest income	$	598	$	—	$	598			$	347	$	—	$	347			$	378	$	—	$	378			$	404	$	—	$	404			$	407	$	—	$	407
Interest expense	66		—		66				41		—		41				76		—		76				93		—		93				107		—		107
Net interest income	532		—		532				305		—		305				303		—		303				311		—		311				301		—		301
Noninterest income:
Fixed income	111		—		111				112		—		112				96		—		96				81		—		81				78		—		78
Mortgage banking and title	66		—		66				4		—		4				2		—		2				4		—		4				2		—		2
Brokerage, trust, and insurance	30		—		30				22		—		22				23		—		23				22		—		22				22		—		22
Service charges and fees	50		—		50				35		—		35				36		—		36				39		—		39				40		—		40
Card and digital banking fees	17		—		17				12		—		12				12		—		12				14		—		14				13		—		13
Deferred compensation income	4		—		4				8		—		8				(10)		—		(10)				3		—		3				—		—		—
Other noninterest income	546		(532)		14				12		—		12				15		—		15				20		—		20				17		—		17
Total noninterest income	823		(532)		291				206		—		206				175		—		175				183		—		183				172		—		172
Total revenue	1,355		(532)		823				512		—		512				478		—		478				495		—		495				472		—		472
Noninterest expense:
Personnel expenses:
Salaries and benefits	201		(1)		200				111		(5)		107				113		(1)		112				112		(4)		107				111		(3)		109
Incentives and commissions	126		(34)		91				79		—		79				81		—		81				63		—		63				55		4		59
Deferred compensation expense	3		—		3				9		—		9				(10)		—		(10)				4		—		4				1		—		1
Total personnel expenses	329		(35)		294				200		(5)		195				183		(1)		182				179		(4)		174				167		1		168
Occupancy and equipment	77		(4)		73				46		—		46				44		—		44				44		—		44				42		—		42
Outside services	78		(32)		46				38		(5)		33				38		(2)		37				54		(18)		36				47		(12)		35
Amortization of intangible assets	15		(1)		14				5		—		5				5		—		5				6		—		6				6		—		6
Other noninterest expense			89		(44)		45				31		(4)		27				31		(3)		28				45		(15)		31				46		(21)		25
Total noninterest expense			587		(116)		471				321		(14)		307				302		(6)		296				328		(37)		291				308		(31)		277
Pre-provision net revenue			768		(416)		352				191		14		205				175		6		181				166		37		203				164		31		196
Provision for credit losses			227		(147)		80				121		—		121				154		—		154				9		—		9				14		—		14
Income before income taxes			541		(269)		272				69		14		84				21		6		27				157		37		194				150		31		181
Provision for income taxes			2		61		63				13		3		15				5		1		6				36		7		43				36		7		43
Net income			539		(331)		208				57		12		68				16		5		21				121		30		151				114		24		138
Net income attributable to noncontrolling interest			3		—		3				3		—		3				3		—		3				3		—		3				3		—		3
Net income attributable to controlling interest			536		(331)		205				54		12		66				14		5		18				118		30		148				111		24		136
Preferred stock dividends			13		—		13				2		—		2				2		—		2				2		—		2				2		—		2
Net income available to common shareholders			$	523	$	(331)	$	193			$	52	$	12	$	64			$	12	$	5	$	17			$	117	$	30	$	147			$	110	$	24	$	134
Common Stock Data
EPS	$	0.95	$	(0.60)	$	0.35			$	0.17	$	0.04	$	0.21			$	0.04	$	0.01	$	0.05			$	0.38	$	0.10	$	0.47			$	0.35	$	0.08	$	0.43
Basic shares	550				550				312				312				312				312				311				311				312				312
Diluted EPS	$	0.95	$	(0.60)	$	0.35			$	0.17	$	0.04	$	0.20			$	0.04	$	0.01	$	0.05			$	0.37	$	0.10	$	0.47			$	0.35	$	0.08	$	0.43
Diluted shares	551				551				313				313				313				313				313				313				314				314

Amounts adjusted for notable items as detailed on page 9.

Numbers may not foot due to rounding.

First Horizon National Corporation


FHN NON-GAAP TO GAAP RECONCILIATION
Quarterly, Unaudited

(In millions, except per share data)		3Q20			2Q20			1Q20			4Q19			3Q19

Adjusted Diluted EPS
Net income available to common ("NIAC") (GAAP)	a	$	523		$	52		$	12		$	117		$	110
Plus Tax effected notable items (Non-GAAP) (a)		$	(331)		$	12		$	5		$	30		$	24
Adjusted NIAC (Non-GAAP)	b	$	192		$	64		$	17		$	147		$	134

Diluted Shares (GAAP)	c	551			313			313			313			314

Diluted EPS (GAAP)	a/c	$	0.95		$	0.17		$	0.04		$	0.37		$	0.35
Adjusted diluted EPS (Non-GAAP)	b/c	$	0.35		$	0.20		$	0.05		$	0.47		$	0.43

Adjusted Net Income ("NI") and Adjusted Return on Assets ("ROA")
Net Income ("NI") (GAAP)		$	539		$	57		$	16		$	121		$	114
Plus Tax effected notable items (Non-GAAP) (a)		$	(331)		$	12		$	5		$	30		$	24
Adjusted NI (Non-GAAP)		$	208		$	68		$	21		$	151		$	138

NI (annualized) (GAAP)	d	$	2,144		$	228		$	66		$	481		$	452
Adjusted NI (annualized) (Non-GAAP)	e	$	828		$	275		$	84		$	600		$	549

Average assets (GAAP)	f	$	81,683		$	47,934		$	43,552		$	42,886		$	41,941

ROA (GAAP)	d/f	2.63		%	0.48		%	0.15		%	1.12		%	1.08		%
Adjusted ROA (Non-GAAP)	e/f	1.01		%	0.57		%	0.19		%	1.40		%	1.31		%

Return on Average Common Equity ("ROCE")/ Return on Average Tangible Common Equity ("ROTCE")/ Adjusted ROTCE




NIAC (annualized) (GAAP)	g	$	2,082		$	210		$	49		$	463		$	434
Adjusted NIAC (annualized) (Non-GAAP)	h	$	765		$	257		$	67		$	582		$	532

Average Common Equity (GAAP)	i	$	7,309		$	4,673		$	4,611		$	4,649		$	4,571
Intangible Assets (GAAP) (b)		$	1,794		$	1,555		$	1,560		$	1,566		$	1,572
Average Tangible Common Equity (Non-GAAP)	j	$	5,515		$	3,117		$	3,051		$	3,083		$	2,999

ROCE (GAAP)	g/i	28.49		%	4.50		%	1.05		%	9.97		%	9.50		%


ROTCE (Non-GAAP)	g/j	37.75		%	6.74		%	1.59		%	15.03		%	14.49		%
Adjusted ROTCE (Non-GAAP)	h/j	13.90		%	8.26		%	2.19		%	18.88		%	17.73		%

(a) Amounts adjusted for notable items as detailed on page 9.

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

Numbers may not foot due to rounding.

First Horizon National Corporation


FHN NON-GAAP TO GAAP RECONCILIATION
Quarterly, Unaudited

(Millions, except per share data)		3Q20			2Q20			1Q20			4Q19			3Q19

Adjusted Noninterest Income as a % of Total Revenue
Noninterest income (GAAP)	k	$	823		$	206		$	175		$	183		$	172
Plus notable items (GAAP) (a)		$	(532)		$	—		$	—		$	—		$	—
Adjusted noninterest income (Non-GAAP)	l	$	291		$	206		$	175		$	183		$	172

Revenue (GAAP)	m	$	1,355		$	512		$	478		$	495		$	472
Plus notable items (GAAP) (a)		$	(532)		$	—		$	—		$	—		$	—
Adjusted revenue (Non-GAAP)	n	$	823		$	512		$	478		$	495		$	472

Noninterest income as a % of total revenue (GAAP)	k/m	60.72		%	40.32		%	36.59		%	37.05		%	36.35		%
Adjusted noninterest income as a % of total revenue (Non-GAAP)	l/n	35.32		%	40.32		%	36.59		%	37.05		%	36.35		%

Adjusted Efficiency Ratio
Noninterest expense (GAAP)	o	$	587		$	321		$	302		$	328		$	308
Plus notable items (GAAP) (a)		$	(116)		$	(14)		$	(6)		$	(37)		$	(31)
Adjusted noninterest expense (Non-GAAP)	p	$	471		$	307		$	296		$	291		$	277

Revenue excluding securities gains/losses (GAAP)	q	$	1,357		$	512		$	478		$	495		$	472
Plus notable items (GAAP) (a)		$	(532)		$	—		$	—		$	—		$	—
Adjusted revenue excluding securities gains/losses (Non-GAAP)	r	$	825		$	512		$	478		$	495		$	472

Efficiency ratio (GAAP)	o/q	43.31		%	62.74		%	63.26		%	66.35		%	65.26		%
Adjusted efficiency ratio (Non-GAAP)	p/r	57.26		%	59.95		%	62.05		%	58.88		%	58.61		%

(a) Amounts adjusted for notable items as detailed on page 9.

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

Numbers may not foot due to rounding.

First Horizon National Corporation

FHN GLOSSARY OF TERMS

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.

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.

Non-Purchased Credit Deteriorated (“Non-PCD”) Financial Assets: Acquired individual financial assets (or acquired groups of financial assets with similar risk characteristics) that, as of the date of acquisition, do not have a more-than-insignificant deterioration in credit quality since origination, as determined by an acquirer’s assessment.

Purchased Credit Deteriorated (“PCD”) Financial Assets: Acquired individual financial assets (or acquired groups of financial assets with similar risk characteristics) that, as of the date of acquisition, have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by an acquirer’s assessment.

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.

Noninterest Income as a Percentage of Total Revenue: Ratio is noninterest income to total revenue.

Efficiency Ratio: Ratio is noninterest expense to total revenue.

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

Asset Quality - Consolidated Key Ratios

Nonperforming loans and leases ("NPL") %: Ratio is nonaccruing loans and leases in the loan portfolio to total period-end loans and leases.

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

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

Allowance / Nonperforming loans and leases: Ratio is allowance for loan and lease losses to nonperforming loans and leases in the loan portfolio.

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

First Horizon (FHN) 8-KFirst Horizon National Corp. Reports Third Quarter Net Income Available to Common of $523 Million