First Horizon National : 4Q19 FHN Financial Supplement

FOURTH QUARTER 2019 FINANCIAL SUPPLEMENT

If you need further information, please contact:

Aarti Bowman, Investor Relations

901-523-4017

[e-mail]

FHN TABLE OF CONTENTS

	Page
First Horizon National Corporation Segment Structure	3
Performance Highlights	4
Consolidated Results
Income Statement
Income Statement	7
Other Income and Other Expense	8
Acquisition, Restructuring, and Rebranding Expense	9
Balance Sheet
Period End Balance Sheet	10
Average Balance Sheet	11
Net Interest Income	12
Average Balance Sheet: Yields and Rates	13
Capital Highlights	14
Business Segment Detail
Segment Highlights	15
Regional Banking	16
Fixed Income and Corporate	17
Non-Strategic	18
Asset Quality
Asset Quality: Consolidated	19
Asset Quality: Regional Banking and Corporate	21
Asset Quality: Non-Strategic	22
Non-GAAP to GAAP Reconciliation	23
Glossary of Terms	24

Other Information

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

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

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

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

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

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

2

FIRST HORIZON NATIONAL CORPORATION SEGMENT STRUCTURE

3

FHN PERFORMANCE HIGHLIGHTS

Summary of Fourth Quarter 2019 Notable Items

			Amount
Segment	Item	Income Statement	Favorable/	Comments
(Unfavorable)
Corporate	Acquisition expenses	Noninterest expense: various	$(15.7) million	Pre-taxacquisition-related expenses largely associated with
				the pending merger of equals with IBERIABANK Corporation
				("IBKC")
Corporate	Charitable contributions	Noninterest expense: other	$(11.0) million	Pre-tax expense related to charitable contributions
Corporate	Rebranding expenses	Noninterest expense: various	$(9.1) million	Pre-tax expense associated with marketing and advertising
				expenses, professional fees and technology-related expenses
Corporate	Restructuring,	Noninterest expense: various	$(1.2) million	Pre-tax expense associated with professional fees and
	repositioning, and			severance-related costs associated with efficiency initiatives
	efficiency initiatives

Fourth Quarter 2019 vs. Third Quarter 2019

Consolidated

	(Thousands, except per share data)			4Q19					3Q19				Change
	Income Statement
	Net interest income	$	311,393	$	300,676	4	%
	Noninterest income			183,307					171,735				7	%
	Total revenues			494,700					472,411			5	%
	Provision for loan losses			10,000					15,000				(33)	%
	Noninterest expense			327,447					307,672	6	%
	Income before income taxes			157,253					149,739				5	%
	Provision for income taxes			35,970					35,796	*
	Net income/(loss)		$	121,283				$	113,943				6	%
	Diluted EPS	$	0.37	$	0.35	6	%
	Balance Sheet (millions)
	Average Loans		$	30,706				$	30,016				2	%
	Average Deposits			32,777					32,371	1	%
	* Amount is less than one percent.
	Regional Banking
	(Thousands)			4Q19					3Q19				Change
	Net interest income		$	310,696			$	302,370			3	%
	Noninterest income			89,553					85,776	4	%
	Total revenues			400,249					388,146			3	%
	Provision for loan losses			14,369					20,472	(30)	%
	Noninterest expense			202,967					193,250			5	%
	Income before income taxes		$	182,913		$	174,424	5	%
	PPNR (a)			197,282					194,896			1	%
	Balance Sheet (millions)
	Average loans	$	29,722	$	28,958	3	%
	Average deposits			30,413					30,044			1	%

 Diluted EPS of $.37 in 4Q19, up from $.35 in 3Q19



 Total revenue up 5% due to higher fees and an increase in NII



 Fee income up 7% due to higher fixed income revenue, market-driven increases in deferred compensation income, increased collections on loans charged off prior to acquisition (primarily associated with one loan), and increased fees from derivative sales



 NII up 4% due to higher loan accretion and lower funding costs, somewhat offset by the negative impact of lower interest rates on loans (including LIBOR and Prime)



 NIM increased to 3.26% in 4Q19 from 3.21% in 3Q19; increase due to the same factors affecting NII

• Loan loss provision decreased to $10 million in 4Q19, from $15 million in 3Q19
• Expenses up 6% due to higher personnel, acquisition, and rebranding- related expenses, somewhat offset by lower litigation expenses andrestructuring-related expenses
• Average loan growth of 2%; Average deposit growth of 1%
• Strong average loan growth

 Loan growth due to increases in C&I and specialty areas, with particular strength in loans to mortgage companies

 NII up from higher loan accretion and commercial loan growth

• Fee income up 4% due to an increase in collections on loans charged off prior to acquisition, higher fees from derivative sales, and an increase in bankcard income
• Provision expense in 4Q19 largely driven by commercial loan growth; 3Q19 included amounts related to a single unreserved commercial credit, commercial loan growth, and modest grade migration
• Expense up 5% due in large part to higher strategic reinvestments in technology, advertising, and personnel expenses

1. Pre-provisionnet revenue is not a GAAP number but is used in regulatory stress test reporting. The presentation of PPNR in this Financial Supplement follows the regulatory definition.

Fixed Income

(Thousands)		4Q19		3Q19
Net interest income	$	7,233		$	5,309
Noninterest income		81,185			77,809
Total revenues		88,418			83,118
Noninterest expense		62,329			67,787
Income before income taxes	$	26,089		$	15,331

					 4Q19 ADR of $1.1 million, compared to ADR of $994 thousand in
Change	3Q19, up 7% with growth across multiple trading desks
Steeper yield curve and market volatility favorably impacted 4Q19
36			%
			activity
4	%
 Other product revenue up $1.3 million from loan and derivative sales
6			%
			 Expense down 8% due to lower fees associated with legal matters,
(8) %
					somewhat offset by higher variable compensation associated with
70			%		increased revenues

4

FHN PERFORMANCE HIGHLIGHTS (continued)

Fourth Quarter 2019 vs. Third Quarter 2019 (continued)

Corporate

	(Thousands)		4Q19		3Q19		Change
	Net interest income	$	(12,712)		$	(13,225)	4	%
	Noninterest income		11,246			7,359	53	%
	Total revenues		(1,466)			(5,866)	75	%
	Noninterest expense		57,816			41,993	38	%
	Income before income taxes	$	(59,282)		$	(47,859)	(24)	%
	NM - Not meaningful



• Fee income up frommarket-driven higher deferred compensation income and an increase in BOLI policy benefits
• Expense increase primarily driven by $11.0 million of charitable contributions and higheracquisition-andrebranding-related expenses, somewhat offset by lower restructuring costs associated with efficiency initiatives

	Non-Strategic
	(Thousands)			4Q19		3Q19		Change
	Net interest income		$	6,176		$	6,222	(1)	%
	Noninterest income			1,323			791	67		%
												 Non-Strategic results reflect continuing wind-down of the loan portfolio
	Total revenues			7,499			7,013	7		%
	Provision for loan losses			(4,369)			(5,472)	20		%	
	Noninterest expense			4,335			4,642	(7)	%
	Income before income taxes		$	7,533		$	7,843		(4)	%
	Balance Sheet (millions)
	Average loans		$	852		$	935	(9)	%

NM - Not meaningful

Asset Quality

(Thousands)			4Q19		3Q19		Change
Allowance for loan losses	$	200,307		$	193,149		4	%
Allowance / loans %			0.64%			0.62%
Net Charge-offs	$		2,842		$	14,600		(81)	%
Net charge-offs %			0.04%			0.19%
Nonperforming Loans (a)	$	162,165		$	172,495		(6)	%
NPL %			0.52%			0.55%
30+ delinquencies	$	57,911		$	58,861		(2)	%
30+ delinquencies %			0.19%			0.23%

(a) Excludes loans held-for-sale.

• Increase in reserves primarily driven by loan growth within the commercial portfolio, partially offset by declining balances in the non- strategic portfolio
• Decrease in netcharge-offs largely driven by the Regional banking commercial portfolio; 3Q19 net-charge-offs largely driven by two commercial credits
• NPLs within the Regional banking andNon-strategic portfolios decreased $5.6 million and $4.8 million, respectively, in 4Q19 primarily driven by improvements in the consumer real estate portfolios
• Regional banking 30+ delinquencies decreased $12.0 million; Non- strategic down $.7 million

Capital and Liquidity

(millions)			4Q19		3Q19		Change
Common dividends declared (a)		$	43.5		$	43.5	*
Preferred dividends declared	$	1.6		$	1.6	*
Share repurchases		$	-		$	28.2		NM
Capital Ratios (b)
Common Equity Tier 1			9.20%			9.01%
Tier 1			10.15%			9.97%
Total Capital			11.22%			11.01%
Leverage			9.04%			9.05%

 Declared quarterly dividend of $.14 in 4Q19; dividend payout of 37%

 No share repurchases in 4Q19 compared to 1.8 million shares (weighted average price - $15.73) repurchased in 3Q19; due to the pending IBKC merger, significant repurchases are not expected in 1Q20

 $270.7 million remaining authorization under the stock purchase authorization first announced in January 2018, scheduled to expire January 31, 2021

 4Q19 increase in risk-based capital ratios largely driven by an increase in Common Equity Tier 1 capital due to no share repurchases during the quarter

NM - Not meaningful

* Amount is less than one percent.

1. 4Q19 common dividends paid January 2, 2020; 3Q19 common dividends paid October 1, 2019.
2. Regulatory capital ratios calculated under the Basel IIIrisk-based capital rules as phased-in; current quarter is an estimate.

5

FHN PERFORMANCE HIGHLIGHTS (continued)

Consolidated Results for Fiscal Year 2019 vs. 2018

Consolidated
(Thousands, except per share data)			2019				2018		Change
Net interest income		$	1,210,187		$	1,220,317		(1)	%
Noninterest income			654,080				722,788	(10) %
Total revenues			1,864,267				1,943,105		(4)	%
Provision for loan losses			47,000				7,000		NM
Noninterest expense			1,231,603				1,221,996		1	%
Income before income taxes			585,664				714,109		(18) %
Provision for income taxes			133,291				157,602		(15)	%
Net income/(loss)		$	452,373		$	556,507	(19) %
Diluted EPS		$	1.38		$	1.65		(16)	%
Balance Sheet (millions)
Average loans	$	29,189		$	27,214	7	%
Average deposits			32,403				30,903		5	%
NM - Not meaningful

• 2019 diluted EPS of $1.38 compared to $1.65 in 2018; 2018 includes $212.9 millionpre-tax gain on the sale of Visa Class B Shares
• NII relatively flat compared to 2018, as an increase in deposit costs and lower loan accretion were mitigated with strong commercial loan and deposit growth and higher loan yields
• NIM of 3.28% in 2019 compared to 3.45% in 2018; decrease in NIM largely driven by an unfavorable rate environment and lower loan accretion
• 2019 fee income primarily driven by higher fixed income sales revenue,market-driven increases in deferred compensation income, and higher bank fees; 2018 includes $212.9 million related to the Visa gain
• Provision increase primarily driven by commercial loan growth



• 2019 expense includes restructuring- andrebranding-related expenses and higher fixed income variable compensation, somewhat offset by lower acquisition-related expenses and broad-based cost savings across multiple line items driven by strategic focus on expense optimization
• Strong balance sheet growth: Average loans and deposits up 7% and 5%

6

FHN CONSOLIDATED INCOME STATEMENT

Quarterly/Annually, Unaudited

																	4Q19 Changes vs.			Twelve Months Ended		2019 vs.
	(Dollars in thousands, except per share data)		4Q19			3Q19			2Q19		1Q19			4Q18	3Q19		4Q18			2019		2018	2018
	Interest income	$	404,142	$	407,494	$	412,089	$	400,615	$	401,186		(1)	%	1	%		$	1,624,340	$	1,546,021	5	%
	Less: interest expense			92,749			106,818			108,479		106,107			98,674		(13)		%		(6)		%				414,153		325,704	27	%
	Net interest income		311,393			300,676			303,610		294,508			302,512		4	%	3	%				1,210,187		1,220,317	(1)	%
	Provision/(provision credit) for loan losses			10,000			15,000			13,000		9,000			6,000		(33)		%		67		%				47,000		7,000		NM
	Net interest income after provision for loan losses		301,393			285,676			290,610		285,508			296,512		6	%	2	%				1,163,187		1,213,317	(4)	%
	Noninterest income:
	Fixed income (a)		80,981			77,645			66,414		53,749			39,866		4	%		NM						278,789		167,882	66	%
	Deposit transactions and cash management (b)			33,289			34,379			32,374		31,621			25,422		(3)		%		31		%				131,663		133,281	(1)	%
	Brokerage, management fees and commissions		14,557			14,157			14,120		12,633			13,380		3	%	9	%				55,467		54,803	1	%
	Trust services and investment management			7,434			7,163			7,888		7,026			6,959		4		%		7		%				29,511		29,806	(1)	%
	Bankcard income		7,984			7,017			6,355		6,952			7,570		14	%	5	%				28,308		29,304	(3)	%
	Bank-owned life insurance			5,255			4,427			5,126		4,402			4,852		19		%		8		%				19,210		18,955	1	%
	Securities gains/(losses), net (c)		(3)			97			49		31			(28)		NM			89	%				174		212,948		NM
	Other (d)			33,810			26,850			25,667		24,631			12,253		26		%		NM						110,958		75,809	46	%
	Total noninterest income		183,307			171,735			157,993		141,045			110,274		7	%	66	%				654,080		722,788	(10)	%
	Adjusted gross income after provision for loan losses			484,700			457,411			448,603		426,553			406,786		6		%		19		%				1,817,267		1,936,105	(6)	%
	Noninterest expense:
	Employee compensation, incentives, and benefits (e) (f)			178,761			167,022			171,643		177,925			156,240		7		%		14		%				695,351		658,223	6	%
	Legal fees (f)		2,709			4,854			6,486		2,831			3,479		(44)	%	(22)	%				16,880		11,149	51	%
	Professional fees (f)			16,718			14,910			11,291		12,299			8,842		12		%		89		%				55,218		45,799	21	%
	Occupancy (f)		19,972			18,887			20,719		20,693			22,053		6	%	(9)	%				80,271		85,009	(6)	%
	Computer software			15,390			15,191			15,001		15,139			14,656		1		%		5		%				60,721		60,604	*
	Contract employment and outsourcing		3,160			3,256			3,078		3,371			4,248		(3)	%	(26)	%				12,865		18,522	(31)	%
	Operations services			11,171			11,634			11,713		11,488			12,945		(4)		%		(14)		%				46,006		56,280	(18)	%
	Equipment rentals, depreciation, and maintenance		8,597			8,197			8,375		8,829			8,983		5	%	(4)	%				33,998		39,132	(13)	%
	FDIC premium expense			5,806			5,564			4,247		4,273			5,200		4		%		12		%				19,890		31,642	(37)	%
	Advertising and public relations (f)		14,897			6,646			5,574		7,242			7,718		NM			93	%				34,359		24,752	39	%
	Communications and courier			5,597			5,650			7,380		6,453			7,256		(1)		%		(23)		%				25,080		30,032	(16)	%
	Amortization of intangible assets		6,206			6,206			6,206		6,216			6,461		*			(4)	%				24,834		25,855	(4)	%
	Other (d)			38,463			39,655			28,681		19,331			23,851		(3)		%		61		%				126,130		134,997	(7)	%
	Total noninterest expense		327,447			307,672			300,394		296,090			281,932		6	%	16	%				1,231,603		1,221,996	1	%
	Income before income taxes			157,253			149,739			148,209		130,463			124,854		5		%		26		%				585,664		714,109	(18)	%
	Provision for income taxes		35,970			35,796			34,467		27,058			24,049		*			50	%				133,291		157,602	(15)	%
	Net income/(loss)			121,283			113,943			113,742		103,405			100,805		6		%		20		%				452,373		556,507	(19)	%
	Net income attributable to noncontrolling interest		2,910			2,883			2,852		2,820			2,910		1	%	*						11,465		11,465	*
	Net income/(loss) attributable to controlling interest			118,373			111,060			110,890		100,585			97,895		7		%		21		%				440,908		545,042	(19)	%
	Preferred stock dividends		1,550			1,550			1,550		1,550			1,550		*			*						6,200		6,200	*
	Net income/(loss) available to common shareholders		$	116,823		$	109,510		$	109,340	$	99,035		$	96,345		7		%		21		%			$	434,708	$	538,842	(19)	%
	Common Stock Data
	EPS		$	0.38		$	0.35		$	0.35	$	0.31		$	0.30		9		%		27		%			$	1.39	$	1.66	(16)	%
	Basic shares (thousands)		311,250			311,888			314,063		317,435			321,505		*			(3)	%				313,637		324,375	(3)	%
	Diluted EPS		$	0.37		$	0.35		$	0.35	$	0.31		$	0.30		6		%		23		%			$	1.38	$	1.65	(16)	%
	Diluted shares (thousands)		313,353			313,805			315,786		319,581			323,885		*			(3)	%				315,657		327,445	(4)	%
	Key Ratios & Other
	Return on average assets (quarters are annualized) (g)		1.12%			1.08%			1.11%		1.03%			0.99%												1.08%		1.38%
	Return on average common equity ("ROCE") (quarters are
	annualized) (g)			9.97%			9.50%			9.79%		9.09%			8.81%												9.60%		12.75%
	Return on average tangible common equity ("ROTCE")
	(quarters are annualized) (g) (h)		15.03%			14.49%			15.12%		14.17%			13.80%												14.71%		20.28%
	Fee income to total revenue (g)			37.05%			36.34%			34.22%		32.38%			26.72%												35.08%		29.47%
	Efficiency ratio (g)		66.19%			65.14%			65.08%		67.99%			68.30%												66.07%		70.63%
	Average full time equivalent employees			5,005			5,116			5,287		5,524			5,563												5,231		5,723

NM - Not meaningful

* Amount is less than one percent.

1. 2Q19 includes $1.1 million of gains from the reversal of previous valuation adjustments due to the sales and payoff of TRUPS loans.
2. 4Q18 includes an $8.7 million unfavorable adjustment related to the return of excess fees received on Capital Bank debit card transactions.
3. 2018 includes apre-tax gain of $212.9 million from the sale of Visa Class B Shares which impacts certain performance measures in 2018.
4. Refer to the Other Income and Other Expense table on page 8 for additional information.
5. 4Q19, 3Q19, 2Q19 and 1Q19 includeseverance-related costs associated with efficiency initiatives, refer to the Restructuring expense table on page 9 for additional information; 1Q19 and 4Q18 include $6.2 million and $(7.1) million, respectively, of deferred compensation expense.
6. Refer to the Acquisition, Restructuring, and Rebranding expense tables on page 9 for additional information about variability in quarterly balances.
7. See Glossary of Terms for definitions of Key Ratios.
8. Thisnon-GAAP measure is reconciled to ROCE (GAAP) in the Non-GAAP to GAAP reconciliation on page 23 of this financial supplement.

7

FHN OTHER INCOME AND OTHER EXPENSE

Quarterly/Annually, Unaudited

																	4Q19 Changes vs.			Twelve Months Ended		2019 vs.
(Thousands)		4Q19		3Q19		2Q19		1Q19			4Q18	3Q19		4Q18			2019			2018		2018
Other Income
ATM and interchange fees	$	4,529		$	4,507		$	4,262		$	3,241			$	3,411		*				33		%	$	16,539		$	13,354			24		%
Dividend income		1,508			1,556			1,809			2,313				2,425		(3) %	(38) %			7,186			10,555		(32)	%
Electronic banking fees		1,101			1,288			1,267			1,271				1,393		(15)		%		(21)		%			4,927			5,134			(4)	%
Letter of credit fees		1,561			1,400			1,253			1,368				1,447		12		%	8		%			5,582			5,298		5		%
Mortgage banking		3,578			2,019			2,572			1,886				3,077		77		%		16		%			10,055			10,587			(5)	%
Deferred compensation (a)		3,339			472			1,938			5,474				(6,124)	NM			NM				11,223			(3,224)		NM
Insurance commissions		358			577			566			624				467		(38)		%		(23)		%			2,125			2,096			1		%
Other service charges		5,755			5,738			5,624			3,869				3,513		*		64		%			20,986			15,122		39		%
Gain/(loss) on extinguishment of debt		65			(6)		-			(1)			(14)		NM				NM					58			(15)			NM
Other (b)		12,016			9,299			6,376			4,586				2,658		29		%		NM				32,277			16,902		91		%
Total	$	33,810		$	26,850		$	25,667		$	24,631			$	12,253		26		%		NM			$	110,958		$	75,809			46		%
Other Expense
Litigation and regulatory matters	$	(394)	$	11,534		$	(8,230)	$	13		$	35		NM			NM		$	2,923		$	644			NM
Tax credit investments		460			407			267			675				1,126		13		%		(59)		%			1,809			4,712			(62)		%
Travel and entertainment		3,652			2,849			2,906			2,712				4,340		28		%	(16) %			12,119			16,442		(26)	%
Employee training and dues		1,430			1,003			1,251			1,457				1,908		43		%		(25)		%			5,141			7,218			(29)		%
Customer relations (c)		2,794			3,165			1,540			1,599				1,834		(12) %	52		%			9,098			5,583		63		%
Miscellaneous loan costs		1,227			1,017			857			1,027				1,012		21		%		21		%			4,128			3,732			11		%
Supplies		2,104			1,668			1,342			1,804				1,459		26		%	44		%			6,918			6,917		*
Other real estate owned ("OREO")		1,478			342			25			(366)				456		NM				NM					1,479			2,630			(44)		%
Other insurance and taxes		2,515			2,475			2,495			2,694				1,506		2		%	67		%			10,179			9,684		5		%
Non-service components of net periodic		327			986			559			432				1,632		(67)				(80)					2,304			5,251			(56)		%
pension and post retirement cost													%			%
Repurchase and foreclosure provision (d)		-		(22)		(530)		(455)			(153)	NM			NM				(1,007)		(1,039)	3		%
Other (e)		22,870			14,231			26,199			7,739				8,696		61		%		NM					71,039			73,223			(3)	%
Total	$	38,463		$	39,655		$	28,681		$	19,331		$	23,851		(3) %	61		%	$	126,130		$	134,997		(7)	%

NM - Not meaningful

* Amount is less than one percent.

1. Amounts driven by market conditions and are mirrored by changes in deferred compensation expense which is included in employee compensation expense.
2. 4Q19, 3Q19 and 2Q19 increase due in large part to higher fees from derivative sales in the Regional Banking segment; 4Q19 and 3Q19 include an increase in collections from CBF loans charged off prior to acquisition; 3Q19 includes $1.0 million of gains on the sales of buildings; 4Q18 includes a $1.8 million negative valuation adjustment on HFS consumer loans included in theNon-Strategic segment.
3. 3Q19 increase driven by higher development costs.
4. Expense reversals driven by the settlements/recoveries of certain repurchase claims.
5. Refer to the Acquisition, Restructuring, and Rebranding expense tables on page 9 for additional information about variability in quarterly balances; 3Q19 includes $4.0 million of valuation adjustments associated with derivatives related to prior sales of Visa Class B shares.

8

ACQUISITION EXPENSE

Quarterly, Unaudited

IBKC ACQUISITION EXPENSE		4Q19
(Thousands)
Legal and professional fees (a)	$	8,228
Employee compensation, incentives, and benefits (b)		3,079
Miscellaneous expense (e)		64
Total IBKC acquisition expense	$	11,371
											4Q19 Changes vs.
OTHER ACQUISITION EXPENSE		4Q19		3Q19		2Q19		1Q19		4Q18	3Q19	4Q18
(Thousands)
Legal and professional fees (a)	$	1,494	$	3,507	$	4,478	$	1,867	$	3,122	(57)	%	(52)	%
Employee compensation, incentives, and benefits (b)		1,035		1,473		1,472		1,517		2,409	(30) %	(57) %
Occupancy (c)		(94)		(76)		1,505		118		2,915	(24)	%	NM
Contract employment and outsourcing (d)		35		223		17		-		(20)	(84) %	NM
Miscellaneous expense (e)		217		1,022		79		1,069		1,130	(79)	%	(81)	%
All other expense (f)		1,638		2,840		1,096		1,089		2,040	(42) %	(20) %
Total other acquisition expense	$	4,325	$	8,989	$	8,647	$	5,660	$	11,596	(52)	%	(63)	%

NM - Not meaningful

1. Primarily comprised of fees for legal, accounting, and merger consultants.
2. Primarily comprised of fees for severance and retention.
3. Primarily relates to fees associated with lease exit accruals.
4. Primarily relates to fees for temporary assistance for merger and integration activities.
5. Consists of fees for operations services, communications and courier, equipment rentals, deprecation and maintenance, supplies, travel and entertainment, computer software, and advertising and public relations.
6. Primarily relates to contract termination charges, costs of shareholder matters and asset impairments related to integration, as well as other miscellaneous expenses.

RESTRUCTURING EXPENSE

Quarterly, Unaudited

											4Q19
											Changes vs.
		4Q19		3Q19		2Q19		1Q19		3Q19
(Thousands)
Legal and professional fees	$	989	$	6,488	$	4,242	$	4,295			(85)	%
Employee compensation, incentives, and benefits		259		1,182		2,557		6,505		(78) %
Occupancy		57		(128)		72		817			NM
All other expense (a)		(148)		300		11,797		535			NM
Total restructuring expense	$	1,157	$	7,842	$	18,668	$	12,152			(85)	%
NM - Not meaningful
(a) Primarily relates to costs associated with asset impairments.
REBRANDING EXPENSE
Quarterly, Unaudited
								4Q19
							Changes vs.
		4Q19		3Q19		2Q19		3Q19
(Thousands)
Legal and professional fees	$	1,016	$	879	$	882		16		%
Advertising and public relations		6,360		663		423		NM
Supplies		862		105		325		NM
Miscellaneous expense		315		145		38		NM
All other expense (a)		561		1,322		7,406		(58)	%
Total rebranding expense	$	9,114	$	3,114	$	9,074		NM

NM - Not meaningful

1. Primarily relates to costs associated with fixed asset impairments andtechnology-related expenses.
   9

FHN CONSOLIDATED PERIOD-END BALANCE SHEET

Quarterly, Unaudited

											4Q19 Changes vs.
(Thousands)		4Q19		3Q19		2Q19		1Q19		4Q18	3Q19		4Q18
Assets:
Investment securities	$	4,455,403	$	4,425,845	$	4,425,609	$	4,626,322	$	4,636,470	1		%	(4)	%
Loans held-for-sale (a)		593,790		554,843		447,106		594,662		679,149	7		%	(13)		%
Loans, net of unearned income		31,061,111		31,260,833		29,712,810		27,990,048		27,535,532	(1)	%	13		%
Federal funds sold		46,536		48,747		50,705		167,602		237,591	(5) %	(80)		%
Securities purchased under agreements to resell		586,629		697,214		602,919		474,679		386,443	(16)		%	52		%
Interest-bearing cash (b)		482,405		364,412		593,180		1,013,254		1,277,611	32		%	(62) %
Trading securities		1,346,207		1,395,043		1,668,942		1,681,727		1,448,168	(4)	%	(7)		%
Total earning assets		38,572,081		38,746,937		37,501,271		36,548,294		36,200,964	*			7		%
Cash and due from banks		633,728		749,719		596,081		570,589		781,291	(15)	%	(19)	%
Fixed income receivables (c)		40,114		209,732		147,574		46,782		38,861	(81) %	3		%
Goodwill		1,432,787		1,432,787		1,432,787		1,432,787		1,432,787	*			*
Other intangible assets, net		130,200		136,406		142,612		148,818		155,034	(5)		%	(16) %
Premises and equipment, net		455,006		451,600		454,271		484,494		494,041	1		%	(8)	%
OREO		17,838		20,181		19,286		23,396		25,290	(12) %	(29) %
Allowance for loan losses		(200,307)		(193,149)		(192,749)		(184,911)		(180,424)	4		%	11		%
Derivative assets		183,115		250,786		185,521		118,128		81,475	(27)		%	NM
Other assets (d)		2,046,338		1,912,685		1,885,116		1,910,626		1,802,939	7		%	14		%
Total assets	$	43,310,900	$	43,717,684	$	42,171,770	$	41,099,003	$	40,832,258	(1)		%	6		%
Liabilities and Equity:
Deposits:
Consumer interest	$	13,866,920	$	13,670,204	$	13,705,969	$	13,707,310	$	13,327,104	1		%	4		%
Commercial interest		6,153,075		6,211,539		6,660,056		6,729,999		6,172,159	(1)		%	*
Market-indexed (e)		3,980,589		3,794,105		3,855,545		4,062,531		5,042,412	5		%	(21) %
Total interest-bearing deposits		24,000,584		23,675,848		24,221,570		24,499,840		24,541,675	1		%	(2)		%
Noninterest-bearing deposits		8,428,951		8,268,812		8,086,748		7,963,048		8,141,317	2		%	4		%
Total deposits		32,429,535		31,944,660		32,308,318		32,462,888		32,682,992	2		%	(1)	%
Federal funds purchased		548,344		936,837		666,007		339,360		256,567	(41) %	NM
Securities sold under agreements to repurchase		716,925		735,226		764,308		745,788		762,592	(2)	%	(6)		%
Trading liabilities		505,581		719,777		558,347		429,669		335,380	(30) %	51		%
Other short-term borrowings (f)		2,253,045		2,276,139		865,347		140,832		114,764	(1)	%	NM
Term borrowings (g)		791,368		1,195,096		1,186,646		1,177,926		1,170,963	(34) %	(32) %
Fixed income payables (c)		49,535		66,842		66,369		100,290		9,572	(26)	%	NM
Derivative liabilities		67,480		83,530		88,485		107,123		133,713	(19)		%	(50)		%
Other liabilities (d)		873,079		763,534		741,862		748,606		580,335	14		%	50		%
Total liabilities		38,234,892		38,721,641		37,245,689		36,252,482		36,046,878	(1) %	6		%
Equity:
Common stock		194,668		194,487		195,299		197,101		199,108	*			(2) %
Capital surplus		2,931,451		2,925,309		2,941,696		2,983,948		3,029,425	*			(3)		%
Undivided profits		1,798,442		1,725,846		1,660,520		1,595,568		1,542,408	4		%	17		%
Accumulated other comprehensive loss, net		(239,608)		(240,654)		(262,489)		(321,151)		(376,616)	*			(36)	%
Preferred stock		95,624		95,624		95,624		95,624		95,624	*			*
Noncontrolling interest (h)		295,431		295,431		295,431		295,431		295,431	*			*
Total equity		5,076,008		4,996,043		4,926,081		4,846,521		4,785,380	2		%	6		%
Total liabilities and equity	$	43,310,900	$	43,717,684	$	42,171,770	$	41,099,003	$	40,832,258	(1)	%	6		%

NM - Not meaningful

*Amount is less than one percent.

1. 4Q19 includes $493.5 million of SBA and USDA loans, $95.1 million of mortgage loans, and $5.2 million of other consumer loans.
2. Includes excess balances held at Fed.
3. Period-endbalances fluctuate based on the level of pending unsettled trades.
4. 1Q19 increase largely driven by the adoption of ASU2016-02, "Leases" which resulted in approximately $180 million of lease assets and approximately $200 million of lease liabilities being added to the balance sheet.
5. Market-indexeddeposits are tied to an index not administered by FHN and are comprised of insured network deposits, correspondent banking deposits, and trust/sweep deposits.
6. Balance fluctuates largely based on the level of FHLB borrowings as a result of loan demand and deposit levels.
7. In 4Q19 $400 million of First Horizon Bank senior capital notes matured.
8. Consists of preferred stock of subsidiaries.

10

FHN CONSOLIDATED AVERAGE BALANCE SHEET

Quarterly/Annually, Unaudited

											4Q19 Changes vs.			Twelve Months Ended	2019 vs.
(Thousands)		4Q19		3Q19		2Q19		1Q19		4Q18	3Q19	4Q18	2019	2018	2018
Assets:
Earning assets:
Loans, net of unearned income:
Commercial, financial, and industrial (C&I) (a)	$	19,739,937	$	18,965,829	$	17,952,866	$	16,428,088	$	15,952,608	4	%	24	%	$	18,282,655	$	15,872,929	15	%
Commercial real estate (a)	4,263,597	4,269,425	3,910,466	3,959,592	4,170,186	*		2	%	4,102,065	4,206,206	(2)	%
Consumer real estate	6,016,435	6,094,274	6,109,805	6,194,147	6,274,799	(1)	%	(4)	%	6,103,091	6,330,273	(4)	%
Permanent mortgage	177,699	189,214	200,234	216,037	228,184	(6)	%	(22)	%	195,735	251,785	(22)	%
Credit card and other	508,651	497,646	498,790	515,436	528,866	2	%	(4)	%	505,092	552,635	(9)	%
Total loans, net of unearned income (b)	30,706,319	30,016,388	28,672,161	27,313,300	27,154,643	2	%	13	%	29,188,638	27,213,828	7	%
Loans held-for-sale (c)	581,810	455,239	606,685	670,401	714,388	28	%	(19)	%	577,953	723,996	(20)	%
Investment securities:
U.S. treasuries	100	100	99	99	98	*		2	%	99	98	1	%
U.S. government agencies	4,327,651	4,289,719	4,461,712	4,494,814	4,489,625	1	%	(4)	%	4,392,732	4,644,746	(5)	%
States and municipalities	54,146	49,025	41,911	33,400	27,573	10	%	96	%	44,690	10,979	NM
Corporate bonds	50,493	50,414	64,720	65,194	65,033	*		(22)	%	57,645	65,471	(12)	%
Other	15,933	18,837	14,609	10,249	11,421	(15)	%	40	%	14,933	7,017	NM
Total investment securities	4,448,323	4,408,095	4,583,051	4,603,756	4,593,750	1	%	(3)	%	4,510,099	4,728,311	(5)	%
Trading securities	1,263,633	1,391,405	1,564,201	1,443,969	1,634,726	(9)	%	(23)	%	1,415,242	1,603,767	(12)	%
Other earning assets:
Federal funds sold	9,700	21,225	47,664	113,043	43,752	(54)	%	(78)	%	47,552	37,587	27	%
Securities purchased under agreements to resell	645,979	550,641	593,412	428,687	609,891	17	%	6	%	555,264	745,519	(26)	%
Interest-bearing cash (d)	586,495	545,784	648,927	1,717,696	1,073,540	7	%	(45)	%	870,725	623,583	40	%
Total other earning assets	1,242,174	1,117,650	1,290,003	2,259,426	1,727,183	11	%	(28)	%	1,473,541	1,406,689	5	%
Total earning assets	38,242,259	37,388,777	36,716,101	36,290,852	35,824,690	2	%	7	%	37,165,473	35,676,591	4	%
Allowance for loan losses	(195,863)	(196,586)	(188,243)	(182,332)	(186,978)	*		5	%	(190,809)	(187,700)	2	%
Cash and due from banks	609,750	596,323	590,622	610,470	615,199	2	%	(1)	%	601,774	585,397	3	%
Fixed income receivables	75,917	75,938	64,958	55,393	56,519	*		34	%	68,129	55,930	22	%
Premises and equipment, net	450,950	451,567	478,607	485,462	499,867	*		(10)	%	466,511	521,762	(11)	%
Derivative assets	202,624	160,341	83,050	55,288	38,449	26	%	NM		125,825	61,873	NM
Other assets (e)	3,500,153	3,464,541	3,497,912	3,568,059	3,454,782	1	%	1	%	3,507,361	3,511,606	*
Total assets	$ 42,885,790	$ 41,940,901	$ 41,243,007	$ 40,883,192	$ 40,302,528	2	%	6	%	$ 41,744,264	$ 40,225,459	4	%
Liabilities and equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Consumer interest	$	13,718,820	$	13,670,745	$	13,597,195	$	13,390,692	$	12,965,734	*		6	%	$	13,595,470	$	12,700,135	7	%
Commercial interest	6,145,681	6,321,835	6,599,793	6,577,476	5,900,136	(3)	%	4	%	6,409,769	5,660,480	13	%
Market-indexed (f)	4,370,025	4,143,012	3,818,949	4,734,295	4,947,192	5	%	(12)	%	4,265,234	4,541,835	(6)	%
Total interest-bearing deposits	24,234,526	24,135,592	24,015,937	24,702,463	23,813,062	*		2	%	24,270,473	22,902,450	6	%
Federal funds purchased	1,163,701	886,445	519,497	370,868	334,036	31	%	NM		737,715	405,110	82	%
Securities sold under agreements to repurchase	701,213	722,815	691,490	688,765	710,898	(3)	%	(1)	%	701,164	713,841	(2)	%
Trading liabilities	585,889	501,203	548,653	375,169	543,696	17	%	8	%	503,302	682,943	(26)	%
Other short-term borrowings (g)	844,558	535,585	650,387	114,474	244,413	58	%	NM		538,249	1,046,585	(49)	%
Term borrowings (h)	928,214	1,185,853	1,183,205	1,172,618	1,172,405	(22)	%	(21)	%	1,116,990	1,211,928	(8)	%
Total interest-bearing liabilities	28,458,101	27,967,493	27,609,169	27,424,357	26,818,510	2	%	6	%	27,867,893	26,962,857	3	%
Noninterest-bearing deposits	8,542,521	8,235,806	7,947,607	7,795,015	8,034,692	4	%	6	%	8,132,575	8,000,642	2	%
Fixed income payables	34,510	33,059	25,579	21,978	19,858	4	%	74	%	28,827	20,172	43	%
Derivative liabilities	59,114	19,632	61,715	94,943	147,075	NM		(60)	%	58,645	109,362	(46)	%
Other liabilities (e)	751,676	722,570	729,776	737,664	551,695	4	%	36	%	735,425	514,897	43	%
Total liabilities	37,845,922	36,978,560	36,373,846	36,073,957	35,571,830	2	%	6	%	36,823,365	35,607,930	3	%
Equity:
Common stock	194,574	194,930	196,319	198,460	201,006	*		(3)	%	196,057	202,884	(3)	%
Capital surplus	2,928,463	2,934,276	2,964,824	3,015,017	3,068,536	*		(5)	%	2,960,336	3,112,452	(5)	%
Undivided profits	1,766,211	1,695,417	1,629,474	1,572,177	1,510,503	4	%	17	%	1,666,432	1,317,789	26	%
Accumulated other comprehensive loss, net	(240,435)	(253,337)	(312,511)	(367,474)	(440,402)	(5)	%	45	%	(292,981)	(406,651)	(28)	%
Preferred stock	95,624	95,624	95,624	95,624	95,624	*		*		95,624	95,624	*
Noncontrolling interest (i)	295,431	295,431	295,431	295,431	295,431	*		*		295,431	295,431	*
Total equity	5,039,868	4,962,341	4,869,161	4,809,235	4,730,698	2	%	7	%	4,920,899	4,617,529	7	%
Total liabilities and equity	$ 42,885,790	$ 41,940,901	$ 41,243,007	$ 40,883,192	$ 40,302,528	2	%	6	%	$ 41,744,264	$ 40,225,459	4	%

NM - Not meaningful

*Amount is less than one percent.

1. 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.
2. Includes loans on nonaccrual status.
3. 4Q19 includes $478.8 million of SBA and USDA loans, $97.7 million of mortgage loans, and $5.3 million of other consumer loans.
4. Includes excess balances held at Fed.
5. 1Q19 increase largely driven by the adoption of ASU2016-02, "Leases" which resulted in ~ $180 million and $200 million of lease assets and lease liabilities, respectively, being added to the balance sheet.
6. Market-indexeddeposits are tied to an index not administered by FHN and are comprised of insured network deposits, correspondent banking deposits, and trust/sweep deposits.
7. Balance fluctuates largely based on the level of FHLB borrowings as a result of loan demand and deposit levels.
8. In 4Q19 $400 million of First Horizon Bank senior capital notes matured.
9. Consists of preferred stock of subsidiaries.

11

FHN CONSOLIDATED NET INTEREST INCOME (a)

Quarterly, Unaudited

											4Q19 Changes vs.
(Thousands)		4Q19		3Q19		2Q19		1Q19		4Q18	3Q19		4Q18
Interest Income:
Loans, net of unearned income (b)	$	356,176	$	357,724	$	354,067	$	334,167	$	333,935	*		7	%
Loans held-for-sale		7,053		6,069		8,128		9,877		11,759	16	%	(40)	%
Investment securities:
U.S. government agencies		26,500		26,322		29,075		30,107		30,744	1	%	(14)	%
States and municipalities		478		431		347		362		300	11	%	59	%
Corporate bonds		595		593		713		712		716	*		(17)	%
Other		1,352		1,634		1,278		895		955	(17)	%	42	%
Total investment securities		28,925		28,980		31,413		32,076		32,715	*		(12)	%
Trading securities		9,507		10,645		13,332		13,712		15,533	(11)	%	(39)	%
Other earning assets:
Federal funds sold		51		141		326		733		304	(64)	%	(83)	%
Securities purchased under agreements to resell		2,467		2,800		3,301		2,336		3,197	(12)	%	(23)	%
Interest-bearing cash		2,359		2,700		3,689		10,209		5,884	(13)	%	(60)	%
Total other earning assets		4,877		5,641		7,316		13,278		9,385	(14)	%	(48)	%
Interest income	$	406,538	$	409,059	$	414,256	$	403,110	$	403,327	(1)	%	1	%
Interest Expense:
Interest-bearing deposits:
Consumer interest	$	22,957	$	26,670	$	25,666	$	24,641	$	21,607	(14)	%	6	%
Commercial interest		24,366		28,112		29,927		28,153		22,706	(13)	%	7	%
Market-indexed (c)		20,090		23,809		23,409		29,416		29,366	(16)	%	(32)	%
Total interest-bearing deposits		67,413		78,591		79,002		82,210		73,679	(14)	%	(9)	%
Federal funds purchased		5,026		4,898		3,142		2,287		1,933	3	%	NM
Securities sold under agreements to repurchase		2,843		3,301		3,580		3,496		3,329	(14)	%	(15)	%
Trading liabilities		2,987		2,943		3,756		2,816		4,320	1	%	(31)	%
Other short-term borrowings		3,989		3,333		4,316		961		1,571	20	%	NM
Term borrowings (d)		10,491		13,752		14,683		14,337		13,842	(24)	%	(24)	%
Interest expense		92,749		106,818		108,479		106,107		98,674	(13)	%	(6)	%
Net interest income - tax equivalent basis		313,789		302,241		305,777		297,003		304,653	4	%	3	%
Fully taxable equivalent adjustment		(2,396)		(1,565)		(2,167)		(2,495)		(2,141)	(53)	%	(12)	%
Net interest income	$	311,393	$	300,676	$	303,610	$	294,508	$	302,512	4	%	3	%

NM - Not meaningful

*Amount is less than one percent.

1. 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.
2. Includes interest on loans in nonaccrual status.
3. Market-indexeddeposits are tied to an index not administered by FHN and are comprised of insured network deposits, correspondent banking deposits, and trust/sweep deposits.
4. In 4Q19 $400 million of First Horizon Bank senior capital notes matured.

12

FHN CONSOLIDATED AVERAGE BALANCE SHEET: YIELDS AND RATES

Quarterly, Unaudited

	4Q19		3Q19		2Q19		1Q19		4Q18
Assets:
Earning assets (a)
Loans, net of unearned income (b)
Commercial loans	4.63	%	4.78	%	5.05	%	5.08	%	5.00	%
Consumer loans	4.51		4.55		4.65		4.59		4.54
Total loans, net of unearned income (c)	4.60		4.73		4.95		4.96		4.88
Loans held-for-sale	4.85		5.33		5.36		5.89		6.58
Investment securities:
U.S. government agencies	2.45		2.45		2.61		2.68		2.74
States and municipalities	3.53		3.51		3.31		4.33		4.36
Corporate bonds	4.71		4.71		4.41		4.37		4.40
Other	33.73		34.52		34.73		34.56		33.16
Total investment securities	2.60		2.63		2.74		2.79		2.85
Trading securities	3.01		3.06		3.41		3.80		3.80
Other earning assets:
Federal funds sold	2.10		2.64		2.74		2.63		2.76
Securities purchased under agreements to resell	1.52		2.02		2.23		2.21		2.08
Interest-bearing cash	1.60		1.96		2.28		2.41		2.17
Total other earning assets	1.56		2.00		2.27		2.38		2.16
Interest income/total earning assets	4.22	%	4.35	%	4.52	%	4.49	%	4.47	%
Liabilities:
Interest-bearing liabilities:
Interest-bearing deposits:
Consumer interest	0.66	%	0.77	%	0.76	%	0.75	%	0.66	%
Commercial interest	1.57		1.76		1.82		1.74		1.53
Market-indexed (d)	1.82		2.28		2.46		2.52		2.35
Total interest-bearing deposits	1.10		1.29		1.32		1.35		1.23
Federal funds purchased	1.71		2.19		2.43		2.50		2.30
Securities sold under agreements to repurchase	1.61		1.81		2.08		2.06		1.86
Trading liabilities	2.02		2.33		2.75		3.04		3.15
Other short-term borrowings	1.87		2.47		2.66		3.40		2.55
Term borrowings (e)	4.52		4.64		4.96		4.89		4.72
Interest expense/total interest-bearing liabilities	1.29		1.52		1.58		1.57		1.46
Net interest spread	2.93	%	2.83	%	2.94	%	2.92	%	3.01	%
Effect of interest-free sources used to fund earning assets	0.33		0.38		0.40		0.39		0.37
Net interest margin	3.26	%	3.21	%	3.34	%	3.31	%	3.38	%
Total loan yield	4.60	%	4.73	%	4.95	%	4.96	%	4.88	%
Total deposit cost	0.82	%	0.96	%	0.99	%	1.03	%	0.92	%

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

1. Earning assets yields are expressed net of unearned income.
2. Includes loan fees and cash basis interest income.
3. Includes loans on nonaccrual status.
4. Market-indexeddeposits are tied to an index not administered by FHN and are comprised of insured network deposits, correspondent banking deposits, and trust/sweep deposits.
5. Rates are expressed net of unamortized debenture cost for term borrowings; In 4Q19 $400 million of First Horizon Bank senior capital notes matured.

13

FHN CAPITAL HIGHLIGHTS

Quarterly, Unaudited

																4Q19 Changes vs.
(Dollars and shares in thousands)		4Q19			3Q19			2Q19			1Q19			4Q18		3Q19	4Q18
Common equity tier 1 capital (a) (b)	$	3,408,937		$	3,326,059		$	3,270,484		$	3,239,249		$	3,223,702	2	%	6	%
Tier 1 capital (a) (b)		3,760,431			3,679,158			3,620,001			3,583,577			3,565,373		2		%	5	%
Total capital (a)		4,154,886			4,065,306			4,009,116			3,963,901			3,940,117	2	%	5	%
Risk-weighted assets ("RWA") (a) (b)	37,046,770		36,913,347		35,341,740		33,656,950			33,002,595			*		12	%
Average assets for leverage (a) (b)	41,583,447		40,660,442		40,022,187		39,717,387			39,221,755		2		%	6	%
Common equity tier 1 ratio (a) (b)		9.20	%		9.01	%		9.25	%		9.62	%		9.77	%
Tier 1 ratio (a) (b)		10.15	%		9.97	%		10.24	%		10.65	%		10.80	%
Total capital ratio (a)		11.22	%		11.01	%		11.34	%		11.78	%		11.94	%
Leverage ratio (a) (b)		9.04	%		9.05	%		9.04	%		9.02	%		9.09	%
Total equity to total assets		11.72	%		11.43	%		11.68	%		11.79	%		11.72	%
Tangible common equity/tangible assets
("TCE/TA") (c)		7.48	%		7.20	%		7.29	%		7.27	%		7.15	%
Period-end shares outstanding (d)		311,469			311,180			312,478			315,361			318,573			*		(2)	%
Cash dividends declared per common share	$	0.14		$	0.14		$	0.14		$	0.14		$	0.12			*		17	%
Book value per common share	$	15.04		$	14.80		$	14.51		$	14.13		$	13.79
Tangible book value per common share (c)	$	10.02		$	9.76		$	9.47		$	9.11		$	8.81
Market capitalization (millions)	$	5,157.9		$	5,041.1		$	4,665.3		$	4,408.7		$	4,192.4

Certain previously reported amounts have been reclassified to agree with current presentation. * Amount is less than one percent.

1. Current quarter is an estimate.
2. See Glossary of Terms for definition.
3. TCE/TA and Tangible book value per common share arenon-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.
4. Decreases largely attributable to shares repurchased under share repurchase programs.

14

FHN BUSINESS SEGMENT HIGHLIGHTS

Quarterly/Annually, Unaudited

																				4Q19 Changes vs.				Twelve Months Ended		2019 vs.
(Thousands)			4Q19		3Q19		2Q19		1Q19		4Q18	3Q19		4Q18				2019			2018		2018
Regional Banking
Net interest income	$	310,696			$	302,370		$	297,339		$	285,913			$	298,288			3			%	4			%	$	1,196,318		$	1,197,471			*
Noninterest income (a)		89,553				85,776			81,475			73,030				70,003			4			%	28			%			329,834			311,763		6		%
Total revenues		400,249				388,146			378,814			358,943				368,291			3			%	9			%			1,526,152			1,509,234			1		%
Provision for loan losses		14,369				20,472			17,775			13,443				8,488			(30)		%	69			%			66,059			24,643			NM
Noninterest expense		202,967				193,250			193,294			199,522				206,001			5			%	(1)		%			789,033			826,262			(5)		%
Income before income taxes		182,913				174,424			167,745			145,978				153,802			5			%	19			%			671,060			658,329		2		%
Provision for income taxes		43,048				41,752			39,502			33,846				36,077			3			%	19			%			158,148			154,659			2		%
Net income	$	139,865			$	132,672		$	128,243		$	112,132			$	117,725			5			%	19			%	$	512,912		$	503,670		2		%
Fixed Income
Net interest income	$	7,233			$	5,309		$	6,171		$	7,331			$	9,011			36			%	(20)			%	$	26,044		$	35,753			(27)		%
Noninterest income		81,185				77,809			65,622			53,807				39,678			4			%	NM				278,423			164,769		69		%
Total revenues		88,418				83,118			71,793			61,138				48,689			6			%	82			%			304,467			200,522			52		%
Noninterest expense (b)		62,329				67,787			55,770			50,774				46,516			(8)		%	34			%			236,660			189,373		25		%
Income before income taxes		26,089				15,331			16,023			10,364				2,173			70			%	NM					67,807			11,149			NM
Provision/(benefit) for income taxes		6,303				3,656			3,781			2,397				408			72			%	NM				16,137			2,097			NM
Net income	$	19,786			$	11,675		$	12,242		$	7,967			$	1,765			69			%	NM			$	51,670		$	9,052			NM
Corporate
Net interest income/(expense)	$	(12,712)		$	(13,225)	$	(7,034)	$	(7,803)		$	(15,356)		4			%	17			%	$	(40,774)	$	(64,191)	36		%
Noninterest income (c)		11,246				7,359			9,400			13,352				(1,411)			53			%	NM					41,357			239,263			(83)		%
Total revenues		(1,466)			(5,866)		2,366			5,549				(16,767)		75			%	91			%			583			175,072			NM
Noninterest expense (d)		57,816				41,993			55,500			40,374				23,144			38			%	NM					195,683			177,923			10		%
Income/(loss) before income taxes		(59,282)			(47,859)		(53,134)		(34,825)			(39,911)		(24)		%	(49)		%			(195,100)		(2,851)		NM
Provision/ (benefit) for income taxes		(15,243)				(11,550)			(13,159)			(11,396)				(14,608)			(32)			%	(4)		%			(51,348)			(10,889)			NM
Net income/(loss)	$	(44,039)		$	(36,309)	$	(39,975)	$	(23,429)		$	(25,303)		(21)		%	(74)		%	$	(143,752)	$	8,038			NM
Non-Strategic
Net interest income	$	6,176			$	6,222		$	7,134		$	9,067			$	10,569			(1)		%	(42)			%	$	28,599		$	51,284			(44)		%
Noninterest income (e)		1,323				791			1,496			856				2,004			67			%	(34) %			4,466			6,993		(36)		%
Total revenues		7,499				7,013			8,630			9,923				12,573			7			%	(40)		%			33,065			58,277			(43)		%
Provision/(provision credit) for loan		(4,369)			(5,472)		(4,775)		(4,443)			(2,488)		20			%	(76)		%			(19,059)		(17,643)	(8)		%
losses
Noninterest expense (f)		4,335				4,642			(4,170)			5,420				6,271			(7)		%	(31)			%			10,227			28,438			(64)		%
Income before income taxes		7,533				7,843			17,575			8,946				8,790			(4) %	(14) %			41,897			47,482		(12)		%
Provision for income taxes		1,862				1,938			4,343			2,211				2,172			(4)		%	(14)			%			10,354			11,735			(12)		%
Net income	$	5,671			$	5,905		$	13,232		$	6,735			$	6,618			(4)		%	(14)		%	$	31,543		$	35,747		(12)		%
Total Consolidated
Net interest income	$	311,393			$	300,676		$	303,610		$	294,508			$	302,512			4			%	3			%	$	1,210,187		$	1,220,317			(1)		%
Noninterest income		183,307				171,735			157,993			141,045				110,274			7			%	66			%			654,080			722,788		(10)		%
Total revenues		494,700				472,411			461,603			435,553				412,786			5			%	20			%			1,864,267			1,943,105			(4)		%
Provision/(provision credit) for loan		10,000				15,000			13,000			9,000				6,000			(33)		%	67			%			47,000			7,000			NM
losses
Noninterest expense		327,447				307,672			300,394			296,090				281,932			6			%	16			%			1,231,603			1,221,996			1		%
Income before income taxes		157,253				149,739			148,209			130,463				124,854			5			%	26			%			585,664			714,109		(18)		%
Provision for income taxes		35,970				35,796			34,467			27,058				24,049			*				50			%			133,291			157,602			(15)		%
Net income	$	121,283			$	113,943		$	113,742		$	103,405			$	100,805			6			%	20			%	$	452,373		$	556,507		(19) %

Certain previously reported amounts have been reclassified to agree with current presentation. NM - Not meaningful

* Amount is less than one percent.

1. 4Q18 includes an $8.7 million unfavorable adjustment related to the return of excess fees received on Capital Bank debit card transactions.
2. 3Q19 includes a $7.5 million unfavorable adjustment associated with the net impact of the resolution of legal matters.
3. 1Q19 and 4Q18 include $6.2 million and $(7.1) million of deferred compensation income driven by equity market valuations; 1Q19 includes a $1.8 million negative valuation adjustment on HFS consumer loans included in theNon-Strategic segment; 2018 includes a pretax gain of $212.9 from the sale of Visa Class B Shares.
4. Refer to the Acquisition, Restructuring, and Rebranding expense tables on page 9 for additional information about variability in quarterly balances; 4Q19 includes $11.0 million of charitable contributions; 3Q19 includes $4.0 million of valuation adjustments associated with derivatives related to prior sales of Visa Class B shares.
5. 2Q19 and 2018 include $1.1 million and $3.8 million, respectively, of gains from the reversal of previous valuation adjustments due to the sales and payoff of TRUPS loans.
6. 2Q19 includes an $8.3 million expense reversal related to the resolution of legal matters.

15

FHN REGIONAL BANKING

Quarterly/Annually, Unaudited

																		4Q19 Changes vs.					Twelve Months Ended			2019 vs.
				4Q19		3Q19			2Q19			1Q19			4Q18	3Q19			4Q18					2019				2018		2018
	Income Statement (thousands)
	Net interest income		$	310,696		$	302,370		$	297,339		$	285,913		$	298,288		3		%		4		%			$	1,196,318			$	1,197,471				*
	Provision for loan losses			14,369			20,472			17,775			13,443			8,488		(30) %	69		%				66,059				24,643				NM
	Noninterest income:
	NSF / Overdraft fees (a)			13,323			13,699			12,347			11,579			14,128		(3) %	(6) %				50,948				52,629		(3) %
	Cash management fees			9,201			9,561			8,026			8,857			9,073		(4)	%		1		%				35,645				36,772				(3)	%
	Debit card income (b)			4,659			4,749			4,960			5,372			(3,142)	(2) %		NM					19,740				21,472		(8) %
	Other			4,456			4,574			5,275			4,195			3,554		(3)	%		25		%				18,500				15,959				16		%
	Total deposit transactions and cash
	management			31,639			32,583			30,608			30,003			23,613		(3) %	34		%				124,833				126,832		(2) %
	Brokerage, management fees and			14,558			14,156			14,118			12,630			13,377		3		%		9		%				55,462				54,799				1		%
	commissions
	Trust services and investment			7,451			7,190			7,902			7,056			6,961		4		%	7		%				29,599				29,853		(1) %
	management
	Bankcard income			7,879			7,028			6,594			7,039			7,738		12		%		2		%				28,540				29,434				(3)	%
	Other service charges			5,692			5,650			5,460			3,711			3,255		1		%	75		%				20,513				14,843		38		%
	Miscellaneous revenue (c)			22,334			19,169			16,793			12,591			15,059		17		%		48		%				70,887				56,002				27		%
	Total noninterest income			89,553			85,776			81,475			73,030			70,003		4		%	28		%				329,834				311,763		6		%
	Noninterest expense:
	Employee compensation, incentives,
	and benefits			74,465			73,713			76,752			81,796			82,304		1		%	(10) %				306,726				326,885		(6) %
	Other (d)			128,502			119,537			116,542			117,726			123,697		7		%		4		%				482,307				499,377				(3)	%
	Total noninterest expense			202,967			193,250			193,294			199,522			206,001		5		%	(1) %				789,033				826,262		(5) %
	Income before income taxes		$	182,913		$	174,424		$	167,745		$	145,978		$	153,802		5		%		19		%			$	671,060			$	658,329				2		%
	PPNR (e)			197,282			194,896			185,520			159,421			162,290		1		%	22		%				737,119				682,972		8		%
	Balance Sheet (millions)
	Average loans		$	29,722		$	28,958		$	27,533		$	26,107		$	25,877		3		%		15		%			$	28,092			$	25,785				9		%
	Average other earning assets			53			47			47			39			41		13		%	29		%				47				51		(8) %
	Total average earning assets			29,775			29,005			27,580			26,146			25,918		3		%		15		%				28,139				25,836				9		%
	Total average deposits			30,413			30,044			29,954			29,590			28,316		1		%	7		%				30,003				27,604		9		%
	Total period-end deposits			30,593			30,060			30,272			30,354			29,344		2		%		4		%				30,593				29,344				4		%
	Total period-end assets			32,899			33,157			31,340			29,544			29,126		(1) %	13		%				32,899				29,126		13		%
	Key Statistics
	Return on average assets (quarters are			1.71%			1.66%			1.70%			1.58%			1.64%												1.67%				1.78%
	annualized) (f)
	Return on allocated equity (f) (g)			18.16%			17.52%			17.38%			15.54%			15.86%												17.17%				16.76%
	Fee income to total revenue (f)			22.37%			22.10%			21.51%			20.35%			19.01%												21.61%				20.66%
	Efficiency ratio (f)			50.71%			49.79%			51.03%			55.59%			55.93%												51.70%				54.75%
	Net interest margin (h)			4.17%			4.16%			4.35%			4.47%			4.60%												4.28%				4.67%
	Net interest spread			3.77%			3.82%			3.99%			3.98%			4.04%												3.88%				4.07%
	Loan average yield			4.50%			4.68%			4.88%			4.86%			4.78%												4.72%				4.63%
	Deposit average rate			0.73%			0.86%			0.89%			0.88%			0.74%												0.84%				0.56%
	Regional banking net charge-		$	5,886		$	17,074		$	7,841		$	5,540		$	12,597		(66)		%		(53)		%			$	36,341			$	23,312				56		%
	offs/(recoveries)
	Financial center locations (i)			269			270			292			292			292		*			(8) %

Certain previously reported amounts have been reclassified to agree with current presentation. NM - Not meaningful

* Amount is less than one percent

1. Variability is driven by changes in consumer behavior and seasonality.
2. 4Q18 includes an $8.7 million unfavorable adjustment related to the return of excess fees received on Capital Bank debit card transactions.
3. 4Q19, 3Q19 and 2Q19 increase due in large part to higher fees from derivative sales; 4Q19 and 3Q19 include an increase in collections from CBF loans charged off prior to acquisition.
4. 4Q19 increase due in large part to higher strategic investments in technology and advertising.
5. Pre-provisionnet revenue is not a GAAP number but is used in regulatory stress test reporting. The presentation of PPNR in this Financial Supplement follows the regulatory definition.
6. See Glossary of Terms for definitions of Key Ratios.
7. Segment equity is allocated based on an internal allocation methodology.
8. Net interest margin is computed using total net interest income adjusted for FTE assuming a statutory federal income tax rate of 21 percent, and, where applicable, state income taxes.
9. 3Q19 decrease driven by restructuring, repositioning, and efficiency initiatives.

16

FHN FIXED INCOME

Quarterly/Annually, Unaudited

														4Q19 Changes vs.			Twelve Months Ended			2019 vs.
		4Q19			3Q19		2Q19		1Q19			4Q18		3Q19		4Q18					2019		2018	2018
Income Statement (thousands)
Net interest income	$	7,233		$	5,309	$	6,171	$	7,331		$	9,011	36		%	(20)		%			$	26,044	$	35,753			(27)	%
Noninterest income:
Fixed income product revenue		65,772			63,646		54,533		44,472			30,028	3		%		NM						228,423		132,283			73	%
Other		15,413			14,163		11,089		9,335			9,650	9	%	60		%				50,000		32,486	54	%
Total noninterest income		81,185			77,809		65,622		53,807			39,678	4		%		NM						278,423		164,769			69	%
Noninterest expense (a)		62,329			67,787		55,770		50,774			46,516	(8) %	34		%				236,660		189,373	25	%
Income before income taxes	$	26,089		$	15,331	$	16,023	$	10,364		$	2,173	70		%		NM					$	67,807	$	11,149			NM
Fixed income product average daily
revenue	$	1,061	$	994	$	866	$	729	$	492	7	%		NM			$	914	$	531	72	%
Balance Sheet (millions)
Average trading inventory	$	1,263		$	1,390	$	1,563	$	1,443		$	1,633	(9)	%	(23)		%			$	1,414	$	1,602			(12)	%
Average loans held-for-sale		477			367		528		571			608	30	%	(22) %				485		563	(14)	%
Average other earning assets		829			709		670		491			675	17		%	23		%				676		807			(16)	%
Total average earning assets		2,569			2,466		2,761		2,505			2,916	4	%	(12) %				2,575		2,972	(13)	%
Total period-end assets		2,987			3,323		3,233		3,094			2,789	(10)		%	7		%				2,987		2,789			7	%
Key Statistics
Return on average assets (b)		2.63%			1.61%		1.57%		1.13%			0.22%												1.74%		0.27%
Return on allocated equity (b) (c)		39.58%			23.30%		24.29%		16.20%			3.38%												25.88%		4.29%
Efficiency ratio (b)		70.49%			81.56%		77.68%		83.05%			95.54%												77.73%		94.44%
Net interest margin (d)		1.15%			0.88%		0.92%		1.19%			1.26%												1.04%		1.23%

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

NM - Not meaningful

1. 3Q19 includes a $7.5 million unfavorable adjustment associated with the net impact of the resolution of legal matters.
2. See Glossary of Terms for definitions of Key Ratios.
3. Segment equity is allocated based on an internal allocation methodology.
4. Net interest margin is computed using total net interest income adjusted for FTE assuming a statutory federal income tax rate of 21 percent, and, where applicable, state income taxes.

FHN CORPORATE

Quarterly/Annually, Unaudited

																					4Q19 Changes vs.			Twelve Months Ended		2019 vs.
				4Q19		3Q19			2Q19			1Q19			4Q18	3Q19		4Q18			2019				2018		2018
Income Statement (thousands)
Net interest income/(expense)		$		(12,712)		$	(13,225)			$	(7,034)			$	(7,803)			$	(15,356)		4	%		17		%		$	(40,774)			$	(64,191)			36		%
Noninterest income excluding
securities gains/(losses) (a)				11,249			7,262				9,351				13,321				(1,383)	55	%		NM					41,183				26,315		57		%
Securities gains/(losses), net (b)				(3)		97				49				31				(28)		NM			89		%			174				212,948			NM
Noninterest expense (c)				57,816			41,993				55,500				40,374				23,144		38	%		NM					195,683				177,923		10		%
Income/(loss) before income taxes		$		(59,282)		$	(47,859)			$	(53,134)			$	(34,825)			$	(39,911)		(24)	%		(49	)	%		$	(195,100	)		$	(2,851)			NM
Average Balance Sheet (millions)
Average investment securities	$		4,432		$	4,389		$	4,568		$	4,594		$	4,582		1	%	(3) %	$	4,495		$	4,721		(5)	%
Total earning assets		$		4,980		$	4,916			$	5,295			$	6,463			$	5,732		1	%		(13)		%		$	5,408			$	5,396			*
Deferred Compensation (thousands)
Other Income	$		3,339		$	471		$	1,938		$	5,474		$	(6,124)	NM			NM			$	11,223		$	(3,224)		NM
Employee compensation,		$		3,846		$	567			$	2,150			$	6,221			$	(6,983)		NM			NM				$	12,784			$	(3,295)			NM
incentives, and benefits

Estimated effective duration of securities portfolio 3.0 years in 4Q19 compared to 2.4 years in 3Q19 Certain previously reported amounts have been reclassified to agree with current presentation.

NM - Not Meaningful

* Amount is less than one percent.

1. Variability in quarterly balances driven by fluctuations in deferred compensation income driven by equity market valuations; 4Q18 includes a $1.8 million negative valuation adjustment on HFS consumer loans included in theNon-Strategic segment; 3Q19 include $1.0 million, respectively, of gains on the sales of buildings.
2. 2018 includes apre-tax gain of $212.9 million from the sale of Visa Class B Shares.
3. Refer to the Acquisition, Restructuring, and Rebranding expense tables on page 9 for additional information about variability in quarterly balances; 4Q19 includes $11.0 million of charitable contributions; 3Q19 includes $4.0 million of valuation adjustments associated with derivatives related to prior sales of Visa Class B shares.

17

FHN NON-STRATEGIC

Quarterly/Annually, Unaudited

																				4Q19 Changes vs.			Twelve Months Ended		2019 vs.
			4Q19		3Q19		2Q19		1Q19			4Q18	3Q19		4Q18			2019			2018		2018
Income Statement (thousands)
Net interest income	$	6,176		$	6,222		$	7,134		$	9,067			$	10,569				(1)	%		(42)		%			$	28,599		$	51,284			(44)		%
Provision/(provision credit) for loan		(4,369)			(5,472)			(4,775)			(4,443)				(2,488)				20	%	(76) %				(19,059)			(17,643)		(8)		%
losses
Noninterest income (a)		1,323			791			1,496			856				2,004				67		%		(34)		%				4,466			6,993			(36)		%
Noninterest expense (b)		4,335			4,642			(4,170)			5,420				6,271				(7) %	(31) %				10,227			28,438		(64)		%
Income before income taxes	$	7,533		$	7,843		$	17,575		$	8,946			$	8,790				(4)	%		(14)		%			$	41,897		$	47,482			(12)		%
Average Balance Sheet (millions)
Loans	$	852		$	935		$	1,011		$	1,087		$	1,161				(9) %	(27) %		$	971		$	1,325		(27)		%
Other assets		68			66			77			88				98				3		%		(31)		%				74			146			(49)		%
Total assets		920			1,001			1,088			1,175				1,259				(8) %	(27) %				1,045			1,471		(29)		%
Key Statistics
Return on average assets (c)		2.44%		2.34%		4.88%		2.32%			2.09%													3.02%		2.43%
Return on allocated equity (c) (d)		35.64%		31.71%		64.14%		25.64%			22.06%													38.74%		24.13%
Fee income to total revenue (c)		17.64%		11.28%		17.33%		8.63%			15.94%													13.51%		12.00%
Efficiency ratio (c)		57.81%		66.19%		NM		54.62%			49.88%													30.93%		48.80%
Net interest margin (e)		2.68%		2.47%		2.65%		3.11%			3.35%													2.74%		3.48%
Net charge-offs/(recoveries)	$	(3,044)		$	(2,474)		$	(2,679)		$	(1,027)		$	(1,062)				(23) %		NM	$	(9,224)		$	(7,180)		(28)		%

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

NM - Not Meaningful

1. 2Q19 and 2018 include $1.1 million and $3.8 million, respectively, of gains from the reversal of previous valuation adjustments due to the sales and payoff of TRUPS loans.
2. 2Q19 includes an $8.3 million expense reversal related to the settlement of litigation matters.
3. See Glossary of Terms for definitions of Key Ratios.
4. Segment equity is allocated based on an internal allocation methodology.
5. Net interest margin is computed using total net interest income adjusted for FTE assuming a statutory federal income tax rate of 21 percent, and, where applicable, state income taxes.

18

FHN ASSET QUALITY: CONSOLIDATED

Quarterly, Unaudited

																4Q19 Changes vs.
(Dollars in thousands)		4Q19			3Q19		2Q19		1Q19		4Q18		3Q19	4Q18
Allowance for Loan Losses Walk-Forward
Beginning reserve	$	193,149	$	192,749	$	184,911	$	180,424	$	185,959	*	4%
Provision/(provision credit) for loan losses		10,000		15,000		13,000		9,000		6,000	(33)%	67%
Charge-offs		(11,646)		(24,337)		(12,223)		(10,527)		(17,824)	52%	35%
Recoveries		8,804		9,737		7,061		6,014		6,289	(10)%	40%
Ending balance	$	200,307	$	193,149	$	192,749	$	184,911	$	180,424	4%	11%
Reserve for unfunded commitments		6,101		6,890		7,524		8,014		7,618	(11)%	(20)%
Total allowance for loan losses plus reserve for unfunded
commitments	$	206,408	$	200,039	$	200,273	$	192,925	$	188,042	3%	10%
Allowance for Loan Losses (a)
Regional Banking	$	182,730	$	174,246	$	170,849	$	160,914	$	153,015	5%	19%
Non-Strategic		17,577		18,903		21,900		23,997		27,409	(7)%	(36)%
Total allowance for loan losses	$	200,307	$	193,149	$	192,749	$	184,911	$	180,424	4%	11%
Nonperforming Assets
Regional Banking
Nonperforming loans (b)	$	113,187	$	118,506	$	145,265	$	115,977	$	79,339	(4)%	43%
OREO		12,347		13,408		13,251		16,698		18,535	(8)%	(33)%
Total Regional Banking	$	125,534	$	131,914	$	158,516	$	132,675	$	97,874	(5)%	28%
Non-Strategic
Nonperforming loans	$	47,651	$	52,346	$	57,654	$	63,960	$	66,703	(9)%	(29)%
Nonperforming loans held-for-sale after fair value adjustments		4,047		4,199		4,514		5,219		5,328	(4)%	(24)%
OREO		3,313		4,408		3,342		3,978		3,852	(25)%	(14)%
Total Non-Strategic	$	55,011	$	60,953	$	65,510	$	73,157	$	75,883	(10)%	(28)%
Corporate
Nonperforming loans	$	1,327	$	1,643	$	1,667	$	1,687	$	1,707	(19)%	(22)%
Total nonperforming assets	$	181,872	$	194,510	$	225,693	$	207,519	$	175,464	(6)%	4%
Net Charge-Offs
Regional Banking	$	5,886	$	17,074	$	7,841	$	5,540	$	12,597	(66)%	(53)%
Non-Strategic		(3,044)		(2,474)		(2,679)		(1,027)		(1,062)	(23)%	NM
Total net charge-offs/(recoveries)	$	2,842	$	14,600	$	5,162	$	4,513	$	11,535	(81)%	(75)%
Consolidated Key Ratios (c)
30+ Delinq. % (d)		0.19 %		0.23 %		0.20 %		0.23 %		0.27 %
NPL % (e)		0.52			0.55			0.69			0.65			0.54
NPA %		0.57			0.61			0.74			0.72			0.62
Net charge-offs % (f)		0.04			0.19			0.07			0.07			0.17
Allowance / loans %		0.64			0.62			0.65			0.66			0.66
Allowance / NPL		1.24	x		1.12	x		0.94	x		1.02	x		1.22	x
Allowance / NPA		1.13	x		1.01 x		0.87 x		0.91 x		1.06	x
Allowance / net charge-offs		17.76	x		3.33	x		9.31	x		10.10	x		3.94	x
Other
Loans past due 90 days or more and still accruing (g)	$	28,343	$	27,182	$	28,663	$	30,896	$	39,992	4%	(29)%
Guaranteed portion (g)		6,417		6,028		5,628		5,725		7,237	6%	(11)%
Period-end loans, net of unearned income (millions)		31,061		31,261		29,713		27,990		27,536	(1)%	13%
30+ delinquencies (thousands)	$	57,911	$	70,675	$	58,861	$	63,693	$	75,164	(18)%	(23)%

NM - Not meaningful

* Amount is less than one percent.

1. In 2Q19, the HBF portfolio was retrospectively reclassed from the Regional Banking segment to theNon-Strategic segment.
2. 3Q19 decrease in nonperforming loans was primarily driven by one mortgage warehouse lending relationship that converted to the underlying collateral.
3. See Glossary of Terms for definitions of Consolidated Key Ratios.
4. 30+ Delinquency % includes all accounts delinquent more than one month and still accruing interest.
5. 2Q19 increase in NPLs as a percentage of total loans was primarily driven by one credit.
6. 3Q19 increase incharge-offs as a percentage of loans was primarily driven by two credits.
7. Includes loansheld-for-sale.

19

FHN ASSET QUALITY: CONSOLIDATED

Quarterly, Unaudited

																4Q19 Changes vs.
		4Q19		3Q19			2Q19			1Q19			4Q18		3Q19	4Q18
Key Portfolio Details
C&I (a)
Period-end loans ($ millions)	$	20,051		$	20,294		$	19,054		$	17,176		$	16,515	(1)%	21%
30+ Delinq. % (b) (c)		0.05	%		0.11	%		0.05	%		0.07	%		0.06	%
NPL % (d)		0.37			0.38			0.56			0.44			0.24
Charge-offs % (qtr. annualized) (e)		0.07			0.32			0.14			0.06			0.20
Allowance / loans %		0.61 %		0.56	%		0.61	%		0.60	%		0.60	%
Allowance / net charge-offs		9.25	x		1.87	x		4.77	x		11.26	x		3.06	x
Commercial Real Estate (a)
Period-end loans ($ millions)	$	4,337		$	4,229		$	3,861		$	3,947		$	4,031	3%	8%
30+ Delinq. % (b)		0.02	%		0.04	%		0.07	%		0.04	%		0.06	%
NPL %		0.04			0.05			0.07			0.07			0.07
Charge-offs % (qtr. annualized)		NM			0.02			0.02			0.04			0.05
Allowance / loans %		0.83 %		0.84	%		0.85	%		0.87	%		0.78	%
Allowance / net charge-offs		NM			47.70	x		39.25	x		22.50	x		15.45	x
Consumer Real Estate
Period-end loans ($ millions)	$	6,007		$	6,063		$	6,110		$	6,152		$	6,250	(1)%	(4)%
30+ Delinq. % (b)		0.61	%		0.59	%		0.62	%		0.66	%		0.74	%
NPL %		1.19			1.31			1.25			1.34			1.32
Charge-offs % (qtr. annualized)		NM			NM			NM			NM			NM
Allowance / loans %		0.33 %		0.36	%		0.37	%		0.39	%		0.42	%
Allowance / net charge-offs		NM			NM			NM			NM			NM
Permanent Mortgage
Period-end loans ($ millions)	$	170		$	182		$	193		$	209		$	222	(7)%	(23)%
30+ Delinq. % (b) (f)		3.72	%		3.83	%		2.22	%		1.95	%		3.21	%
NPL %		8.44			7.83			9.28			10.01			9.76
Charge-offs % (qtr. annualized)		NM			NM			NM			NM			NM
Allowance / loans %		5.18 %		4.84	%		4.49	%		4.82	%		4.95	%
Allowance / net charge-offs		NM			NM			NM			NM			NM
Credit Card and Other
Period-end loans ($ millions)	$	496		$	493		$	495		$	506		$	518	1%	(4)%
30+ Delinq. % (b)		0.93	%		0.94	%		1.06	%		1.20	%		1.63	%
NPL %		0.07			0.07			0.09			0.09			0.12
Charge-offs % (qtr. annualized)		2.29			2.10			2.17			2.44			3.32
Allowance / loans %		2.68 %		2.58	%		2.46	%		2.50	%		2.46	%
Allowance / net charge-offs		1.14	x		1.21	x		1.13	x		1.01	x		0.73	x

NM - Not meaningful

1. 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.
2. 30+ Delinquency % includes all accounts delinquent more than one month and still accruing interest.
3. 3Q19 increase in delinquencies as a percentages of total loans was primarily driven by one credit.
4. 2Q19 increase in NPLs as a percentage of total loans was primarily driven by one credit; 1Q19 increase in NPLs as a percentages of total loans was primarily driven by three credits.
5. 3Q19charge-offs as a percentage of loans was primarily driven by two credits; 2Q19 charge-offs as a percentage of total loans was primarily driven by one credit; 4Q18 charge- offs as a percentage of loans was primarily driven by two credits.
6. 3Q19 increase in delinquencies as a percentage of total loans was primarily driven by two credits.

20

FHN ASSET QUALITY: REGIONAL BANKING

Quarterly, Unaudited

																	4Q19 Changes vs.
			4Q19		3Q19			2Q19			1Q19			4Q18		3Q19	4Q18
Total Regional Banking (a)
Period-end loans ($ millions)	$	30,213		$	30,345		$	28,711		$	26,898		$	26,385		*	15%
30+ Delinq. % (c) (d)			0.14 %		0.18	%		0.15	%		0.17	%		0.19	%
NPL % (e)			0.37			0.39			0.51			0.43			0.30
Charge-offs % (qtr. annualized) (f)		0.08			0.23			0.11			0.09			0.19
Allowance / loans %			0.60	%		0.57	%		0.60	%		0.60	%		0.58	%
Allowance / net charge-offs		7.82 x		2.57	x		5.43	x		7.16	x		3.06	x
Key Portfolio Details
C&I (a) (b)
Period-end loans ($ millions)	$	19,721		$	19,962		$	18,710		$	16,812		$	16,149	(1)%	22%
30+ Delinq. % (c) (d)			0.05	%		0.11	%		0.05	%		0.06	%		0.06	%
NPL % (e)			0.38			0.37			0.56			0.43			0.23
Charge-offs % (qtr. annualized) (f)		0.07			0.33			0.14			0.06			0.21
Allowance / loans %			0.62 %		0.57	%		0.61	%		0.61	%		0.60	%
Allowance / net charge-offs		9.23	x		1.87	x		4.73	x		10.98	x		3.01	x
Commercial Real Estate (a) (b)
Period-end loans ($ millions)	$	4,292		$	4,172		$	3,787		$	3,867		$	3,955	3%	9%
30+ Delinq. % (c)			0.02	%		0.04	%		0.07	%		0.04	%		0.06	%
NPL %			0.04			0.05			0.07			0.07			0.08
Charge-offs % (qtr. annualized)		NM			0.02			0.02			0.04			0.05
Allowance / loans %			0.79 %		0.79	%		0.77	%		0.80	%		0.71	%
Allowance / net charge-offs		NM			43.95	x		34.79	x		20.16	x		13.63	x
Consumer Real Estate (a)
Period-end loans ($ millions)	$	5,735		$	5,759		$	5,773		$	5,780		$	5,845	*	(2)%
30+ Delinq. % (c)			0.50	%		0.48	%		0.50	%		0.52	%		0.58	%
NPL %			0.64			0.74			0.66			0.71			0.67
Charge-offs % (qtr. annualized)		NM			NM			NM			0.04			0.07
Allowance / loans %			0.23 %		0.26	%		0.25	%		0.26	%		0.25	%
Allowance / net charge-offs		NM			NM			NM			6.17	x		3.38	x
Credit Card, Permanent Mortgage, and Other
Period-end loans ($ millions)	$	465		$	452		$	441		$	439		$	436	3%	7%
30+ Delinq. % (c)			0.74	%		0.69	%		0.72	%		0.74	%		0.95	%
NPL %			0.05			0.05			0.06			0.08			0.09
Charge-offs % (qtr. annualized)		2.31			2.00			1.82			2.08			2.55
Allowance / loans %			2.87 %		2.82	%		2.76	%		2.87	%		2.90	%
Allowance / net charge-offs		1.23	x		1.41	x		1.52	x		1.38	x		1.13	x
ASSET QUALITY: CORPORATE
Permanent Mortgage
Period-end loans ($ millions)	$	31		$	34		$	35		$	38		$	39	(9)%	(21)%
30+ Delinq. % (c)			5.29	%		5.00	%		4.03	%		4.54	%		4.37	%
NPL %			4.22			4.90			4.79			4.49			4.35
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.

1. In 2Q19, the HBF portfolio was retrospectively reclassed from the Regional Banking segment to theNon-Strategic segment.
2. 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.
3. 30+ Delinquency % includes all accounts delinquent more than one month and still accruing interest.
4. 3Q19 increase in delinquencies as a percentage of total loans was primarily driven by one credit.
5. 2Q19 increase in NPLs as a percentage of total loans was primarily driven by one credit; 1Q19 increase in NPLs as a percentage of total loans was primarily driven by three credits.
6. 3Q19charge-offs as a percentage of loans was primarily driven by two credits; 2Q19 charge-offs as a percentage of total loans was primarily driven by one credit; 4Q18 charge- offs as a percentage of loans was primarily driven by two credits.

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FHN ASSET QUALITY: NON-STRATEGIC

Quarterly, Unaudited

																	4Q19 Changes vs.
		4Q19			3Q19			2Q19			1Q19			4Q18		3Q19	4Q18
Total Non-Strategic (a)
Period-end loans ($ millions)	$	817		$	882			$	967		$	1,054		$	1,112		(7)%	(27)%
30+ Delinq. % (b)		1.72 %		1.67		%		1.42	%		1.63	%		2.15	%
NPL %		5.83			5.93				5.96			6.06			6.00
Charge-offs % (qtr. annualized)		NM			NM			NM			NM			NM
Allowance / loans %		2.15	%		2.14		%		2.27	%		2.27	%		2.47	%
Allowance / net charge-offs		NM			NM			NM			NM			NM
Key Portfolio Details
Commercial (a)
Period-end loans ($ millions)	$	375		$	388			$	418		$	444		$	441	(3)%	(15)%
30+ Delinq. % (b)		-	%		-	%		-	%		0.38	%		0.39	%
NPL %		-			0.70				0.66			0.64			0.65
Charge-offs % (qtr. annualized)		-			-				0.02			NM			NM
Allowance / loans %		0.65 %		0.77		%		1.20	%		1.10	%		0.99	%
Allowance / net charge-offs		NM			NM				56.57	x		NM			NM
Consumer Real Estate (a)
Period-end loans ($ millions)	$	272		$	304			$	337		$	372		$	405	(11)%	(33)%
30+ Delinq. % (b)		3.01	%		2.62		%		2.60	%		2.77	%		3.07	%
NPL %		12.69			12.14				11.40			11.25			10.76
Charge-offs % (qtr. annualized)		NM			NM				NM			NM			NM
Allowance / loans %		2.35 %		2.33		%		2.44	%		2.41	%		2.95	%
Allowance / net charge-offs		NM			NM				NM			NM			NM
Permanent Mortgage
Period-end loans ($ millions)	$	135		$	145			$	155		$	168		$	179	(7)%	(25)%
30+ Delinq. % (b) (c)		3.28	%		3.50		%		1.67	%		1.14	%		2.87	%
NPL %		9.50			8.56				10.36			11.29			10.97
Charge-offs % (qtr. annualized)		NM			NM				NM			NM			NM
Allowance / loans %		6.44 %		6.05		%		5.57	%		5.96	%		6.10	%
Allowance / net charge-offs		NM			NM				NM			NM			NM
Other Consumer
Period-end loans ($ millions)	$	35		$	45			$	57		$	70		$	87	(22)%	(60)%
30+ Delinq. % (b)		4.05	%		3.78		%		4.21	%		4.61	%		5.35	%
NPL %		0.85			0.72				0.72			0.56			0.69
Charge-offs % (qtr. annualized)		1.83			2.84				4.41			4.35			6.77
Allowance / loans %		0.09 %		0.09		%		0.09	%		0.20	%		0.15	%
Allowance / net charge-offs		0.04	x		0.03		x		0.02	x		0.04	x		0.02	x

.

NM - Not meaningful

1. In 2Q19, the HBF portfolio was retrospectively reclassed from Regional Banking segment to theNon-Strategic segment.
2. 30+ Delinquency % includes all accounts delinquent more than one month and still accruing interest.
3. 3Q19 increase in delinquencies as a percentage of total loans was primarily driven by two credits.

22

FHN NON-GAAP TO GAAP RECONCILIATION

Quarterly/Annually, Unaudited

																													Twelve Months Ended
	(Dollars and shares in thousands, except per
			4Q19				3Q19				2Q19				1Q19				4Q18				2019					2018
	share data)
	Tangible Common Equity (Non-GAAP)
	(A) Total equity (GAAP)	$	5,076,008			$	4,996,043			$	4,926,081			$	4,846,521			$	4,785,380				$	5,076,008			$	4,785,380
	Less: Noncontrolling interest (a)			295,431					295,431					295,431					295,431					295,431					295,431					295,431
	Less: Preferred stock (a)			95,624					95,624					95,624					95,624					95,624					95,624					95,624
	(B) Total common equity		$	4,684,953				$	4,604,988				$	4,535,026				$	4,455,466				$	4,394,325				$	4,684,953				$	4,394,325
	Less: Intangible assets (GAAP) (b)			1,562,987					1,569,193					1,575,399					1,581,605					1,587,821					1,562,987					1,587,821
	(C) Tangible common equity (Non-GAAP)		$	3,121,966				$	3,035,795				$	2,959,627				$	2,873,861				$	2,806,504				$	3,121,966				$	2,806,504
	Tangible Assets (Non-GAAP)
	(D) Total assets (GAAP)	$	43,310,900			$	43,717,684			$	42,171,770			$	41,099,003			$	40,832,258				$	43,310,900			$	40,832,258
	Less: Intangible assets (GAAP) (b)			1,562,987					1,569,193					1,575,399					1,581,605					1,587,821					1,562,987					1,587,821
	(E) Tangible assets (Non-GAAP)	$	41,747,913			$	42,148,491			$	40,596,371			$	39,517,398			$	39,244,437				$	41,747,913			$	39,244,437
	Average Tangible Common Equity (Non-
	GAAP)
	(F) Average total equity (GAAP)		$	5,039,868				$	4,962,341				$	4,869,161				$	4,809,235				$	4,730,698				$	4,920,899				$	4,617,529
	Less: Average noncontrolling interest (a)			295,431					295,431					295,431					295,431					295,431					295,431					295,431
	Less: Average preferred stock (a)			95,624					95,624					95,624					95,624					95,624					95,624					95,624
	(G) Total average common equity	$	4,648,813			$	4,571,286			$	4,478,106			$	4,418,180			$	4,339,643				$	4,529,844			$	4,226,474
	Less: Average intangible assets (GAAP) (b)			1,566,079					1,572,312					1,578,505					1,584,694					1,569,533					1,575,338					1,569,987
	(H) Average tangible common equity
	(Non-GAAP)	$	3,082,734			$	2,998,974			$	2,899,601			$	2,833,486			$	2,770,110				$	2,954,506			$	2,656,487
	Annualized Net Income/(loss) Available to
	Common Shareholders
	(I) Net income /(loss) available to common		$	463,483				$	434,469				$	438,562				$	401,642				$	382,238				$	434,708				$	538,842
	shareholders (quarters are annualized) (GAAP)
	Period-end Shares Outstanding
	(J) Period-end shares outstanding			311,469					311,180					312,478					315,361					318,573					311,469					318,573
	Ratios
	(I)/(G) Return on average common equity
	("ROCE") (GAAP)			9.97		%			9.50		%			9.79		%			9.09		%			8.81		%			9.60		%			12.75		%
	(I)/(H) Return on average tangible common			15.03		%			14.49		%			15.12		%			14.17		%			13.80		%			14.71		%			20.28		%
	equity ("ROTCE") (Non-GAAP)
	(A)/(D) Total equity to total assets (GAAP)			11.72		%			11.43		%			11.68		%			11.79		%			11.72		%			11.72		%			11.72		%
	(C)/(E) Tangible common equity to tangible			7.48		%			7.20		%			7.29		%			7.27		%			7.15		%			7.48		%			7.15		%
	assets ("TCE/TA") (Non-GAAP)
	(B)/(J) Book value per common share (GAAP)		$	15.04				$	14.80				$	14.51				$	14.13				$	13.79				$	15.04				$	13.79
	(C)/(J) Tangible book value per common share
	(Non-GAAP)	$	10.02			$	9.76			$	9.47			$	9.11			$	8.81				$	10.02			$	8.81

1. Included in Total equity on the Consolidated Balance Sheet.
2. Includes goodwill and other intangible assets, net of amortization.

23

FHN GLOSSARY OF TERMS

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

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

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

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

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

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

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

Key Ratios

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

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

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

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

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

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

Asset Quality - Consolidated Key Ratios

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

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

Netcharge-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.

24