1 EXHIBIT 11 FIRST TENNESSEE NATIONAL CORPORATION PRIMARY EARNINGS PER SHARE AND FULLY DILUTED EARNINGS PER SHARE Computation for Statements of Income: 1996 1995 1994 - ------------------------------------- ----------- ----------- ----------- Per statements of income (Thousands): Net income $ 179,907 $ 164,888 $ 147,068 =========== =========== =========== Per statements of income: Weighted average shares outstanding 67,196,586 68,024,794 68,441,382 =========== =========== =========== Primary earnings per share (a): Net income $ 2.68 $ 2.42 $ 2.15 =========== =========== =========== Additional Primary computation - ------------------------------ Adjustment to weighted average shares outstanding: Weighted average shares outstanding per primary computation above 67,196,586 68,024,794 68,441,382 Add dilutive effect of outstanding options (as determined by the application of the treasury stock method) 971,608 639,766 535,064 ----------- ---------- ----------- Weighted average shares outstanding, as adjusted 68,168,194 68,664,560 68,976,446 =========== =========== =========== Primary earnings per share, as adjusted (b): Net income $ 2.64 $ 2.40 $ 2.13 =========== =========== =========== Additional Fully Diluted Computation - ------------------------------------ Adjustment to weighted average shares outstanding: Weighted average shares outstanding per primary computation above 68,168,194 68,664,560 68,976,446 Additional dilutive effect of outstanding options (as determined by the application of the treasury stock method) 49,630 99,014 25,962 ----------- ----------- ----------- Weighted average shares outstanding, as adjusted 68,217,824 68,763,574 69,002,408 =========== =========== =========== Fully diluted earnings per share, as adjusted (b): Net income $ 2.64 $ 2.40 $ 2.13 =========== =========== =========== (a) These figures agree with the related amounts in the statements of income. (b) This calculation is submitted in accordance with Securities Exchange Act of 1934 Release No. 9083 although not required by footnote 2 paragraph 14 of APB Opinion No. 15 because it results in dilution of less than 3%. Per share data reflects the 1996 two-for-one stock split.