UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

 

Date of report (Date of earliest event reported): July 16, 2019

 

 

First Horizon National Corporation

(Exact Name of Registrant as Specified in Charter)

 

TN	001-15185	62-0803242
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)

 

165 MADISON AVENUE
MEMPHIS, TENNESSEE	38103
(Address of principal executive office)	(Zip Code)

 

Registrant’s telephone number, including area code: (901) 523-4444

  

(Former name or former address, if changed from last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol(s)	Name of Exchange on which Registered
$0.625 Par Value Common Capital Stock	FHN	New York Stock Exchange, Inc.
Depositary Shares, each representing a 1/4,000th interest in a share of Non-Cumulative Perpetual Preferred Stock, Series A	FHN PR A	New York Stock Exchange, Inc.

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2).

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

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ITEM 2.02. Results of Operations and Financial Condition.

ITEM 7.01. Regulation FD Disclosure.

 

Furnished as Exhibit 99.1 is a copy of the First Horizon National Corporation (“FHN”) Second Quarter 2019 Financial Supplement and as Exhibit 99.2 is a copy of the Investor Slide Presentation for the quarter ended June 30, 2019, both of which were released today.

The foregoing information is furnished pursuant to Item 2.02, “Results of Operations and Financial Condition” and Item 7.01, “Regulation FD Disclosure.” The exhibit speaks as of the date thereof and FHN does not assume any obligation to update in the future the information therein.

 

Use of Non-GAAP Measures and Regulatory Measures that are not GAAP in the Exhibits

 

Certain measures are included in the exhibits 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 the 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 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 the exhibits 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 the exhibits include: return on average tangible common equity (“ROTCE”); tangible common equity (“TCE”) to tangible assets (“TA”); tangible book value ("TBV") per common share; adjusted ROTCE; and various performance measures and ratios adjusted for notable items identified in the exhibits.

 

Reconciliations of non-GAAP to GAAP measures and presentation of the most comparable GAAP items are presented near the end (immediately before the Glossary) of the Financial Supplement and at the end of the Investor Slide Presentation.

Forward-Looking Statements

This financial supplement and investor slide presentation contain 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, investor slide presentation and in FHN's most recent earnings release, as well as critical accounting estimates and other factors described in FHN’s recent filings with the SEC. FHN disclaims any obligation to update any such forward-looking statements or to publicly announce the result of any revisions to any of the forward-looking statements to reflect future events or developments.

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ITEM 9.01. Financial Statements and Exhibits.

 

(d)	Exhibits

The following exhibits are furnished pursuant to Items 2.02 and 7.01, are not to be considered “filed” under the Securities Exchange Act of 1934, as amended (“Exchange Act”), and shall not be incorporated by reference into any of FHN’s previous or future filings under the Securities Act of 1933, as amended, or the Exchange Act.

 

Exhibit #			Description
99.1			First Horizon National Corporation Second Quarter 2019 Financial Supplement.
99.2			First Horizon National Corporation Investor Slide Presentation for the quarter ended June 30, 2019.

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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

		First Horizon National Corporation
Date:	July 16, 2019	By:	/s/ William C. Losch III
		William C. Losch III
		Executive Vice President and Chief Financial Officer

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1

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SECOND QUARTER 2019

 

FINANCIAL SUPPLEMENT

 

If you need further information, please contact:

Aarti Bowman, Investor Relations

901-523-4017

aagoorha@firsthorizon.com

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FHN TABLE OF CONTENTS

	Page
First Horizon National Corporation Segment Structure	3
Performance Highlights	4
Consolidated Results
Income Statement
Income Statement	6
Other Income and Other Expense	7
Acquisition, Restructuring, and Rebranding Expense	8
Balance Sheet
Period End Balance Sheet	9
Average Balance Sheet	10
Net Interest Income	11
Average Balance Sheet: Yields and Rates	12
Capital Highlights	13
Business Segment Detail
Segment Highlights	14
Regional Banking	15
Fixed Income and Corporate	16
Non-Strategic	17
Asset Quality
Asset Quality: Consolidated	18
Asset Quality: Regional Banking and Corporate	20
Asset Quality: Non-Strategic	21
Non-GAAP to GAAP Reconciliation	22
Glossary of Terms	23

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 22 of this financial supplement.

2

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FIRST HORIZON NATIONAL CORPORATION SEGMENT STRUCTURE

 

3

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FHN PERFORMANCE HIGHLIGHTS
Summary of Second Quarter 2019 Notable Items
Segment		Item		Income Statement		Amount Favorable/ (Unfavorable)		Comments
Corporate		Restructuring, repositioning, and efficiency initiatives		Noninterest expense: various		$(18.7) million		Pre-tax expense associated with asset impairments, professional fees, and severance-related costs associated with efficiency initiatives
Corporate		Rebranding expenses		Noninterest expense: various		$(9.1) million		Pre-tax expense associated with asset impairments, professional fees, and other customer-contact and technology-related expenses
Corporate		Acquisition expenses		Noninterest expense: various		$(8.6) million		Pre-tax acquisition-related expenses primarily associated with the Capital Bank Financial Corp. ("CBF") acquisition
Non-Strategic		Litigation expense reversal		Litigation and regulatory matters		$8.3 million		Pre-tax expense reversal related to the settlement of litigation matters
Second Quarter 2019 vs. First Quarter 2019

Consolidated													l 2Q19 diluted EPS of $.35 compared to $.31 in 1Q19 l Total revenue up 6% with increases in fee income and NII l Increase in fee income largely due to higher fixed income revenue l NII up from higher commercial loan balances and loan accretion, somewhat offset by the negative impact of a decline in LIBOR and loan spreads  l NIM of 3.34% in 2Q19 compared to 3.31% in 1Q19; increase primarily due to lower interest bearing cash, higher loan accretion, and a favorable shift in deposit mix (from market-indexed to core customer), somewhat offset by a decline in LIBOR and loan spreads l    Loan loss provision at $13 million in 2Q19, up from $9 million in 1Q19 l    Expenses up 1% primarily driven by notable items        l   2Q19 expense also favorably impacted by cost savings from efficiency initiatives l    Average loan growth of 5%
(Thousands, except per share data)	2Q19				1Q19				Change
Income Statement
Net interest income	$	303,610			$	294,508			3		%
Noninterest income	157,993				141,045				12		%
Total revenues	461,603				435,553				6		%
Provision for loan losses	13,000				9,000				44		%
Noninterest expense	300,394				296,090				1		%
Income before income taxes	148,209				130,463				14		%
Provision for income taxes	34,467				27,058				27		%
Net income/(loss)	$	113,742			$	103,405			10		%
Diluted EPS	$	0.35			$	0.31			13		%
Balance Sheet (millions)
Average Loans	$	28,672			$	27,313			5		%
Average Deposits	31,964				32,497				(2	)	%

Regional Banking													l       Strong loan and deposit growth    l Loan growth due to increases in C&I and specialty areas, with particular strength in loans to mortgage companies    l  Customer deposit growth from ongoing focus on new-to-bank households    l NII up from an increase in commercial loans, higher accretion, and more days in 2Q19 l    Fee income up 12% with solid growth in nearly all products and services l    Provision expense primarily driven by increased reserves due to commercial loan growth and specific reserves for two commercial credits, one of which was partially charged off in 2Q19       l   Net charge-offs were $7.8 million in 2Q19, up from $5.5 million l    Expenses down 3% primarily driven by lower personnel-related expense and broad-based cost savings across multiple line items driven by continued strategic focus on expense optimization
(Thousands)	2Q19				1Q19				Change
Net interest income	$	297,328			$	285,913			4		%
Noninterest income	81,475				73,030				12		%
Total revenues	378,803				358,943				6		%
Provision for loan losses	17,775				13,443				32		%
Noninterest expense	193,268				199,468				(3	)	%
Income before income taxes	$	167,760			$	146,032			15		%
PPNR (a)	185,535				159,475				16		%
Balance Sheet (millions)
Average loans	$	27,533			$	26,107			5		%
Average deposits	29,954				29,590				1		%
(a) Pre-provision net revenue is not a GAAP number but is used in regulatory stress test reporting. The presentation of PPNR in this Financial Supplement follows the regulatory definition.

Fixed Income													l Decline in interest rates and rate outlook favorably impacted 2Q19 activity l     2Q19 ADR of $866 thousand, compared to ADR of $729 thousand in 1Q19, up 19% with growth across multiple trading desks from 1Q19 l Pre-tax income up from higher ADR, an increase in other product revenue, somewhat offset by higher variable compensation
(Thousands)	2Q19				1Q19				Change
Net interest income	$	6,171			$	7,331			(16	)	%
Noninterest income	65,622				53,807				22		%
Total revenues	71,793				61,138				17		%
Noninterest expense	55,770				50,774				10		%
Income before income taxes	$	16,023			$	10,364			55		%

4

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FHN PERFORMANCE HIGHLIGHTS (continued)
Second Quarter 2019 vs. First Quarter 2019 (continued)

Corporate													l    Deferred compensation net impact of $.5 million with a fee income decrease of $3.5 million, offset by an expense decrease of $4.1 million l    Expense increase driven by higher restructuring costs associated with efficiency initiatives and rebranding-related expenses, somewhat offset by lower acquisition-related costs
(Thousands)	2Q19				1Q19				Change
Net interest income	$	(7,000	)		$	(7,803	)		10		%
Noninterest income	9,400				13,352				(30	)	%
Total revenues	2,400				5,549				(57	)	%
Noninterest expense	55,500				40,374				37		%
Income before income taxes	$	(53,100	)		$	(34,825	)		(52	)	%

Non-Strategic													l  Non-Strategic results reflect continuing wind-down of the loan portfolio l    Fee income in 2Q19 includes a $1.1 million gain on the sale and payoff of TRUPS loans l    2Q19 includes an $8.3 million favorable expense reversal related to the settlement of litigation matters
(Thousands)	2Q19				1Q19				Change
Net interest income	$	7,111			$	9,067			(22	)	%
Noninterest income	1,496				856				75		%
Total revenues	8,607				9,923				(13	)	%
Provision for loan losses	(4,775		)		(4,443		)		(7	)	%
Noninterest expense	(4,144		)		5,474				NM
Income before income taxes	$	17,526			$	8,892			97		%
Balance Sheet
Average loans	$	1,011			$	1,087			(7	)	%
NM - Not meaningful

Asset Quality												l    Increase in reserves primarily driven by loan growth within the commercial portfolio partially offset by declining balances in the non-strategic portfolio l    Net charge-offs were $5.2 million in 2Q19 compared to $4.5 million in 1Q19; increase driven by one mortgage warehouse lending relationship l    Nonperforming loans increased $29 million, primarily driven by one mortgage warehouse lending relationship l    30+ delinquencies improved
(Thousands)	2Q19				1Q19			Change
Allowance for loan losses	$192,749				$184,911			4		%
Allowance / loans %	0.65		%		0.66	%
Net Charge-offs	$	5,162			$4,513			14		%
Net charge-offs %	0.07		%		0.07	%
Nonperforming Loans (a)	$204,586				$181,624			13		%
NPL %	0.69		%		0.65	%
30+ delinquencies	$	58,861			$63,693			(8	)	%
30+ delinquencies %	0.20		%		0.23	%
* Amount is less than one percent.
(a) Excludes loans held-for-sale.

Capital and Liquidity													l Declared quarterly dividend of $.14 in 2Q19; dividend payout of 41% l Repurchased 3.5 million shares (weighted average price - $14.30) in 2Q19 compared to 3.5 million shares (weighted average price - $14.85) in 1Q19 l $298.9 million remaining authorization under the stock purchase authorization first announced in January 2018, currently scheduled to expire January 31, 2021 l 2Q19 decrease in risk-based capital ratios largely driven by an increase in risk-weighted assets driven by period-end commercial loan growth
(millions)	2Q19				1Q19				Change
Common dividends declared (a)	$	43.7			$	44.3			(1	)	%
Preferred dividends declared	$	1.6			$	1.6			*
Share repurchases	$	50.2			$	51.5			(3	)	%
Capital Ratios (b)
Common Equity Tier 1	9.25		%		9.62		%
Tier 1	10.24		%		10.65		%
Total Capital	11.34		%		11.78		%
Leverage	9.05		%		9.02		%
* Amount is less than one percent.
(a) 2Q19 common dividends paid July 1, 2019; 1Q19 common dividends paid April 1, 2019.
(b) Regulatory capital ratios calculated under the Basel III risk-based capital rules as phased-in; current quarter is an estimate.

5

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FHN CONSOLIDATED INCOME STATEMENT

Quarterly, Unaudited

																					2Q19 Changes vs.
(Dollars in thousands, except per share data)	2Q19				1Q19				4Q18				3Q18				2Q18				1Q19			2Q18
Interest income	$	412,089			$	400,615			$	401,186			$	393,669			$	387,811			3		%	6		%
Less: interest expense	108,479				106,107				98,674				87,969				76,879				2		%	41		%
Net interest income	303,610				294,508				302,512				305,700				310,932				3		%	(2	)	%
Provision/(provision credit) for loan losses	13,000				9,000				6,000				2,000				—				44		%	NM
Net interest income after provision for loan losses	290,610				285,508				296,512				303,700				310,932				2		%	(7	)	%
Noninterest income:
Fixed income (a)	66,414				53,749				39,866				44,813				37,697				24		%	76		%
Deposit transactions and cash management (b)	32,374				31,621				25,422				35,792				36,083				2		%	(10	)	%
Brokerage, management fees and commissions	14,120				12,633				13,380				14,200				13,740				12		%	3		%
Trust services and investment management	7,888				7,026				6,959				7,438				8,132				12		%	(3	)	%
Bankcard income	6,355				6,952				7,570				7,744				7,195				(9	)	%	(12	)	%
Bank-owned life insurance	5,126				4,402				4,852				4,337				5,773				16		%	(11	)	%
Securities gains/(losses), net (c)	49				31				(28		)		212,859				31				58		%	58		%
Other (d)	25,667				24,631				12,253				21,789				18,874				4		%	36		%
Total noninterest income	157,993				141,045				110,274				348,972				127,525				12		%	24		%
Adjusted gross income after provision for loan losses	448,603				426,553				406,786				652,672				438,457				5		%	2		%
Noninterest expense:
Employee compensation, incentives, and benefits (e)	171,643				177,925				156,240				164,839				165,890				(4	)	%	3		%
Repurchase and foreclosure provision (f)	(530		)		(455		)		(153		)		(562		)		(252		)		(16	)	%	NM
Legal fees (g)	6,486				2,831				3,479				2,541				2,784				NM			NM
Professional fees (g)	11,291				12,299				8,842				9,270				15,415				(8	)	%	(27	)	%
Occupancy (g)	20,719				20,693				22,053				20,002				22,503				*			(8	)	%
Computer software	15,001				15,139				14,656				15,693				15,123				(1	)	%	(1	)	%
Contract employment and outsourcing	3,078				3,371				4,248				4,314				5,907				(9	)	%	(48	)	%
Operations services	11,713				11,488				12,945				13,121				14,653				2		%	(20	)	%
Equipment rentals, depreciation, and maintenance	8,375				8,829				8,983				9,423				10,708				(5	)	%	(22	)	%
FDIC premium expense (h)	4,247				4,273				5,200				7,850				9,978				(1	)	%	(57	)	%
Advertising and public relations	5,574				7,242				7,718				8,365				5,070				(23	)	%	10		%
Communications and courier	7,380				6,453				7,256				7,014				7,530				14		%	(2	)	%
Amortization of intangible assets	6,206				6,216				6,461				6,460				6,460				*			(4	)	%
Other (d)	29,211				19,786				24,004				25,701				50,999				48		%	(43	)	%
Total noninterest expense	300,394				296,090				281,932				294,031				332,768				1		%	(10	)	%
Income before income taxes	148,209				130,463				124,854				358,641				105,689				14		%	40		%
Provision for income taxes (i)	34,467				27,058				24,049				83,925				19,697				27		%	75		%
Net income/(loss)	113,742				103,405				100,805				274,716				85,992				10		%	32		%
Net income attributable to noncontrolling interest	2,852				2,820				2,910				2,883				2,852				1		%	*
Net income/(loss) attributable to controlling interest	110,890				100,585				97,895				271,833				83,140				10		%	33		%
Preferred stock dividends	1,550				1,550				1,550				1,550				1,550				*			*
Net income/(loss) available to common shareholders	$	109,340			$	99,035			$	96,345			$	270,283			$	81,590			10		%	34		%
Common Stock Data
EPS (c)	$	0.35			$	0.31			$	0.30			$	0.83			$	0.25			13		%	40		%
Basic shares (thousands)	314,063				317,435				321,505				324,406				325,153				(1	)	%	(3	)	%
Diluted EPS (c)	$	0.35			$	0.31			$	0.30			$	0.83			$	0.25			13		%	40		%
Diluted shares (thousands)	315,786				319,581				323,885				327,252				328,426				(1	)	%	(4	)	%
Key Ratios & Other
Return on average assets (annualized) (c) (j)	1.11		%		1.03		%		0.99		%		2.72		%		0.86		%
Return on average common equity (“ROCE”) (annualized) (c) (j)	9.79		%		9.09		%		8.81		%		25.41		%		7.86		%
Return on average tangible common equity (“ROTCE”) (annualized) (c) (j) (k)	15.12		%		14.17		%		13.80		%		40.51		%		12.63		%
Fee income to total revenue (j)	34.22		%		32.38		%		26.72		%		30.81		%		29.08		%
Efficiency ratio (j)	65.08		%		67.99		%		68.30		%		66.55		%		75.90		%
Average full time equivalent employees	5,287				5,524				5,563				5,623				5,873

NM - Not meaningful

* Amount is less than one percent.

(a)	2Q19 and 3Q18 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.

(b)	4Q18 includes an $8.7 million unfavorable adjustment related to the return of excess fees received on Capital Bank debit card transactions.

(c)	3Q18 includes a pre-tax gain of $212.9 million from the sale of Visa Class B Shares which impacts certain performance measures in 3Q18.

(d)	Refer to the Other Income and Other Expense table on page 7 for additional information.

(e)	2Q19 and 1Q19 include severance-related costs associated with efficiency initiatives, refer to the Restructuring expense table on page 8 for additional information; 1Q19 and 4Q18 include $6.2 million and $(7.1) million, respectively, of deferred compensation expense.

(f) Expense reversals driven by the settlements/recoveries of certain repurchase claims.

(g)	Refer to the Acquisition, Restructuring, and Rebranding expense tables on page 8 for additional information about variability in quarterly balances.

(h) 4Q18 decrease due to the end of the FDIC assessment surcharge.

(i)	3Q18 reflects the tax effect on the gain on the sale of Visa Class B Shares.

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

(k)	This non-GAAP measure is reconciled to ROCE (GAAP) in the Non-GAAP to GAAP reconciliation on page 22 of this financial supplement.

6

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FHN OTHER INCOME AND OTHER EXPENSE

Quarterly, Unaudited

																						2Q19 Changes vs.
(Thousands)		2Q19				1Q19				4Q18				3Q18				2Q18				1Q19			2Q18
Other Income
ATM and interchange fees		$	4,262			$	3,241			$	3,411			$	3,263			$	3,413			32		%	25		%
Dividend income		1,809				2,313				2,425				2,757				3,124				(22	)	%	(42	)	%
Electronic banking fees		1,267				1,271				1,393				1,309				1,228				*			3		%
Letter of credit fees		1,253				1,368				1,447				1,307				1,295				(8	)	%	(3	)	%
Mortgage banking		2,572				1,886				3,077				2,533				2,431				36		%	6		%
Deferred compensation (a)		1,938				5,474				(6,124		)		1,458				991				(65	)	%	96		%
Insurance commissions		566				624				467				396				476				(9	)	%	19		%
Other service charges		5,624				3,869				3,513				3,758				3,728				45		%	51		%
Gain/(loss) on extinguishment of debt		—				(1		)		(14		)		(1		)		—				NM			NM
Other (b)		6,376				4,586				2,658				5,009				2,188				39		%	NM
Total		$	25,667			$	24,631			$	12,253			$	21,789			$	18,874			4		%	36		%
Other Expense
Litigation and regulatory matters (c)		$	(8,230	)		$	13			$	35			$	(1,541	)		$	16			NM			NM
Tax credit investments		267				675				1,126				1,370				1,079				(60	)	%	(75	)	%
Travel and entertainment		2,906				2,712				4,340				3,988				5,131				7		%	(43	)	%
Employee training and dues		1,251				1,457				1,908				1,682				1,849				(14	)	%	(32	)	%
Customer relations		1,540				1,599				1,834				1,328				1,358				(4	)	%	13		%
Miscellaneous loan costs		857				1,027				1,012				543				1,035				(17	)	%	(17	)	%
Supplies		1,342				1,804				1,459				1,635				1,987				(26	)	%	(32	)	%
OREO		25				(366		)		456				1,256				810				NM			(97	)	%
Other insurance and taxes		2,495				2,694				1,506				2,761				2,752				(7	)	%	(9	)	%
Non-service components of net periodic pension and post retirement cost		559				432				1,632				1,585				1,530				29		%	(63	)	%
Other (d)		26,199				7,739				8,696				11,094				33,452				NM			(22	)	%
Total		$	29,211			$	19,786			$	24,004			$	25,701			$	50,999			48		%	(43	)	%

NM - Not meaningful

*Amount is less than one percent.

(a)	Amounts driven by market conditions and are mirrored by changes in deferred compensation expense which is included in employee compensation expense.

(b)	4Q18 includes a $1.8 million negative valuation adjustment on HFS consumer loans included in the Non-Strategic segment; 3Q18 includes $.8 million of gains on the sales of buildings.

(c)	2Q19 includes an $8.3 million expense reversal related to the settlement of litigation matters within the Non-Strategic segment; 3Q18 includes a $1.6 million expense reversal related to a recovery of prior litigation losses within the Regional Banking segment.

(d)	Refer to the Acquisition, Restructuring, and Rebranding expense tables on page 8 for additional information about variability in quarterly balances; 2Q18 includes $4.1 million of valuation adjustments associated with derivatives related to prior sales of Visa Class B shares.

                        

7

---

ACQUISITION EXPENSE

Quarterly, Unaudited

																					2Q19 Changes vs.
	2Q19				1Q19				4Q18				3Q18				2Q18				1Q19			2Q18
(Thousands)
Legal and professional fees (a)	$	4,478			$	1,867			$	3,122			$	4,593			$	8,991			NM			(50	)	%
Employee compensation, incentives, and benefits (b)	1,472				1,517				2,543				3,112				3,849				(3	)	%	(62	)	%
Occupancy (c)	1,505				118				2,885				115				2,229				NM			(32	)	%
Contract employment and outsourcing (d)	17				—				(20		)		599				1,703				NM			(99	)	%
Miscellaneous expense (e)	79				1,069				1,130				1,381				3,099				(93	)	%	(97	)	%
All other expense (f)	1,096				1,089				2,040				1,549				23,245				1		%	(95	)	%
Total acquisition expense	$	8,647			$	5,660			$	11,700			$	11,349			$	43,116			53		%	(80	)	%

NM - Not meaningful

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

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

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

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

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

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

RESTRUCTURING EXPENSE

Quarterly, Unaudited

									2Q19 Changes vs.
	2Q19				1Q19				1Q19
(Thousands)
Legal and professional fees	$	4,242			$	4,295			(1	)	%
Employee compensation, incentives, and benefits	2,557				6,505				(61	)	%
Occupancy	72				817				(91	)	%
All other expense (a)	11,797				535				NM
Total acquisition expense	$	18,668			$	12,152			54		%

NM - Not meaningful

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

REBRANDING EXPENSE

Quarterly, Unaudited

	2Q19
(Thousands)
Legal and professional fees	$	882
Advertising and public relations	423
Supplies	325
Miscellaneous expense	38
All other expense (a)	7,406
Total acquisition expense	$	9,074

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

8

---

FHN CONSOLIDATED PERIOD-END BALANCE SHEET

Quarterly, Unaudited 

																					2Q19 Changes vs.
(Thousands)	2Q19				1Q19				4Q18				3Q18				2Q18				1Q19			2Q18
Assets:
Investment securities	$	4,425,609			$	4,626,322			$	4,636,470			$	4,618,383			$	4,734,411			(4	)	%	(7	)	%
Loans held-for-sale (a)	447,106				594,662				679,149				725,651				692,659				(25	)	%	(35	)	%
Loans, net of unearned income	29,712,810				27,990,048				27,535,532				27,350,214				27,701,740				6		%	7		%
Federal funds sold	50,705				167,602				237,591				113,722				91,303				(70	)	%	(44	)	%
Securities purchased under agreements to resell	602,919				474,679				386,443				687,437				782,765				27		%	(23	)	%
Interest-bearing cash (b)	593,180				1,013,254				1,277,611				531,681				750,634				(41	)	%	(21	)	%
Trading securities	1,668,942				1,681,727				1,448,168				1,930,991				1,649,470				(1	)	%	1		%
Total earning assets	37,501,271				36,548,294				36,200,964				35,958,079				36,402,982				3		%	3		%
Cash and due from banks	596,081				570,589				781,291				642,051				602,952				4		%	(1	)	%
Fixed income receivables (c)	147,574				46,782				38,861				177,802				68,148				NM			NM
Goodwill	1,432,787				1,432,787				1,432,787				1,409,822				1,409,276				*			2		%
Other intangible assets, net	142,612				148,818				155,034				161,495				167,955				(4	)	%	(15	)	%
Premises and equipment, net	454,271				484,494				494,041				506,453				525,175				(6	)	%	(14	)	%
Other real estate owned ("OREO")	19,286				23,396				25,290				28,628				29,712				(18	)	%	(35	)	%
Allowance for loan losses	(192,749		)		(184,911		)		(180,424		)		(185,959		)		(185,462		)		4		%	4		%
Derivative assets	185,521				118,128				81,475				54,476				122,056				57		%	52		%
Other assets (d)	1,885,116				1,910,626				1,802,939				1,883,077				1,934,001				(1	)	%	(3	)	%
Total assets	$	42,171,770			$	41,099,003			$	40,832,258			$	40,635,924			$	41,076,795			3		%	3		%
Liabilities and Equity:
Deposits:
Consumer interest	$	13,705,969			$	13,707,310			$	13,327,104			$	12,800,892			$	12,780,195			*			7		%
Commercial interest	6,660,056				6,729,999				6,172,159				5,735,486				5,547,510				(1	)	%	20		%
Market-indexed (e)	3,855,545				4,062,531				5,042,412				4,445,826				4,412,272				(5	)	%	(13	)	%
Total interest-bearing deposits	24,221,570				24,499,840				24,541,675				22,982,204				22,739,977				(1	)	%	7		%
Noninterest-bearing deposits	8,086,748				7,963,048				8,141,317				8,025,881				8,237,890				2		%	(2	)	%
Total deposits	32,308,318				32,462,888				32,682,992				31,008,085				30,977,867				*			4		%
Federal funds purchased	666,007				339,360				256,567				437,474				351,655				96		%	89		%
Securities sold under agreements to repurchase	764,308				745,788				762,592				678,510				713,152				2		%	7		%
Trading liabilities	558,347				429,669				335,380				739,694				743,721				30		%	(25	)	%
Other short-term borrowings (f)	865,347				140,832				114,764				1,069,912				1,836,852				NM			(53	)	%
Term borrowings (g)	1,186,646				1,177,926				1,170,963				1,200,134				1,227,281				1		%	(3	)	%
Fixed income payables (c)	66,369				100,290				9,572				36,939				14,739				(34	)	%	NM
Derivative liabilities	88,485				107,123				133,713				170,324				135,349				(17	)	%	(35	)	%
Other liabilities (d)	741,862				748,606				580,335				552,921				526,430				(1	)	%	41		%
Total liabilities	37,245,689				36,252,482				36,046,878				35,893,993				36,527,046				3		%	2		%
Equity:
Common stock	195,299				197,101				199,108				202,464				203,127				(1	)	%	(4	)	%
Capital surplus	2,941,696				2,983,948				3,029,425				3,101,102				3,113,612				(1	)	%	(6	)	%
Undivided profits	1,660,520				1,595,568				1,542,408				1,484,959				1,254,069				4		%	32		%
Accumulated other comprehensive loss, net	(262,489		)		(321,151		)		(376,616		)		(437,649		)		(412,114		)		(18	)	%	(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	4,926,081				4,846,521				4,785,380				4,741,931				4,549,749				2		%	8		%
Total liabilities and equity	$	42,171,770			$	41,099,003			$	40,832,258			$	40,635,924			$	41,076,795			3		%	3		%

NM - Not meaningful

*Amount is less than one percent.

(a)	2Q19 includes $369.1 million of SBA and USDA loans, $72.2 million of mortgage loans, and $5.8 million of other consumer loans.

(b)	Includes excess balances held at Fed.

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

(d)	1Q19 increase largely driven by the adoption of ASU 2016-02, "Leases" which resulted in approximately $180 million of lease assets and approximately $200 million of lease liabilities being added to the balance sheet.

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

(f)	Balance fluctuates largely based on the level of FHLB borrowings as a result of loan demand and deposit levels.

(g)	4Q18 and 3Q18 decreases include the retirement of $35.1 million and $10.3 million, respectively, of TRUPS debt.

(h)	Consists of preferred stock of subsidiaries.

9

---

FHN CONSOLIDATED AVERAGE BALANCE SHEET

Quarterly, Unaudited 

																					2Q19 Changes vs.
(Thousands)	2Q19				1Q19				4Q18				3Q18				2Q18				1Q19			2Q18
Assets:
Earning assets:
Loans, net of unearned income:
Commercial, financial, and industrial (C&I)	$	17,952,866			$	16,428,088			$	15,952,608			$	16,038,920			$	15,958,162			9		%	12		%
Commercial real estate	3,910,466				3,959,592				4,170,186				4,226,580				4,198,275				(1	)	%	(7	)	%
Consumer real estate	6,109,805				6,194,147				6,274,799				6,199,910				6,217,618				(1	)	%	(2	)	%
Permanent mortgage	200,234				216,037				228,184				348,922				369,144				(7	)	%	(46	)	%
Credit card and other	498,790				515,436				528,866				532,890				555,588				(3	)	%	(10	)	%
Total loans, net of unearned income (a)	28,672,161				27,313,300				27,154,643				27,347,222				27,298,787				5		%	5		%
Loans held-for-sale (b)	606,685				670,401				714,388				727,508				727,212				(10	)	%	(17	)	%
Investment securities:
U.S. treasuries	99				99				98				98				98				*			1		%
U.S. government agencies	4,461,712				4,494,814				4,489,625				4,594,639				4,705,893				(1	)	%	(5	)	%
States and municipalities	41,911				33,400				27,573				14,332				1,621				25		%	NM
Corporate bonds	64,720				65,194				65,033				65,505				65,719				(1	)	%	(2	)	%
Other	14,609				10,249				11,421				7,307				4,114				43		%	NM
Total investment securities	4,583,051				4,603,756				4,593,750				4,681,881				4,777,445				*			(4	)	%
Trading securities	1,564,201				1,443,969				1,634,726				1,501,857				1,568,675				8		%	*
Other earning assets:
Federal funds sold	47,664				113,043				43,752				43,396				35,165				(58	)	%	36		%
Securities purchased under agreements to resell	593,412				428,687				609,891				764,743				728,785				38		%	(19	)	%
Interest-bearing cash (c)	648,927				1,717,696				1,073,540				486,280				447,461				(62	)	%	45		%
Total other earning assets	1,290,003				2,259,426				1,727,183				1,294,419				1,211,411				(43	)	%	6		%
Total earning assets	36,716,101				36,290,852				35,824,690				35,552,887				35,583,530				1		%	3		%
Allowance for loan losses	(188,243		)		(182,332		)		(186,978		)		(186,204		)		(187,253		)		3		%	1		%
Cash and due from banks	590,622				610,470				615,199				597,578				564,554				(3	)	%	5		%
Fixed income receivables	64,958				55,393				56,519				54,176				51,346				17		%	27		%
Premises and equipment, net	478,607				485,462				499,867				518,017				532,259				(1	)	%	(10	)	%
Derivative assets	83,050				55,288				38,449				31,322				99,212				50		%	(16	)	%
Other assets (d)	3,497,912				3,568,059				3,454,782				3,509,257				3,530,064				(2	)	%	(1	)	%
Total assets	$	41,243,007			$	40,883,192			$	40,302,528			$	40,077,033			$	40,173,712			1		%	3		%
Liabilities and equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Consumer interest	$	13,597,195			$	13,390,692			$	12,965,734			$	12,663,181			$	12,581,023			2		%	8		%
Commercial interest	6,599,793				6,577,476				5,900,136				5,580,371				5,618,245				*			17		%
Market-indexed (e)	3,818,949				4,734,295				4,947,192				4,486,335				4,488,503				(19	)	%	(15	)	%
Total interest-bearing deposits	24,015,937				24,702,463				23,813,062				22,729,887				22,687,771				(3	)	%	6		%
Federal funds purchased	519,497				370,868				334,036				454,670				368,321				40		%	41		%
Securities sold under agreements to repurchase	691,490				688,765				710,898				720,716				667,689				*			4		%
Trading liabilities	548,653				375,169				543,696				702,026				666,092				46		%	(18	)	%
Other short-term borrowings (f)	650,387				114,474				244,413				861,865				1,399,580				NM			(54	)	%
Term borrowings	1,183,205				1,172,618				1,172,405				1,235,166				1,220,494				1		%	(3	)	%
Total interest-bearing liabilities	27,609,169				27,424,357				26,818,510				26,704,330				27,009,947				1		%	2		%
Noninterest-bearing deposits	7,947,607				7,795,015				8,034,692				8,117,349				8,003,901				2		%	(1	)	%
Fixed income payables	25,579				21,978				19,858				17,582				15,453				16		%	66		%
Derivative liabilities	61,715				94,943				147,075				114,211				103,130				(35	)	%	(40	)	%
Other liabilities (d)	729,776				737,664				551,695				512,259				488,735				(1	)	%	49		%
Total liabilities	36,373,846				36,073,957				35,571,830				35,465,731				35,621,166				1		%	2		%
Equity:
Common stock	196,319				198,460				201,006				202,852				203,381				(1	)	%	(3	)	%
Capital surplus	2,964,824				3,015,017				3,068,536				3,108,721				3,121,578				(2	)	%	(5	)	%
Undivided profits	1,629,474				1,572,177				1,510,503				1,323,826				1,240,809				4		%	31		%
Accumulated other comprehensive loss, net	(312,511		)		(367,474		)		(440,402		)		(415,152		)		(404,277		)		(15	)	%	23		%
Preferred stock	95,624				95,624				95,624				95,624				95,624				*			*
Noncontrolling interest (g)	295,431				295,431				295,431				295,431				295,431				*			*
Total equity	4,869,161				4,809,235				4,730,698				4,611,302				4,552,546				1		%	7		%
Total liabilities and equity	$	41,243,007			$	40,883,192			$	40,302,528			$	40,077,033			$	40,173,712			1		%	3		%

NM - Not meaningful

*Amount is less than one percent.

(a)	Includes loans on nonaccrual status.

(b)	2Q19 includes $528.5 million of SBA and USDA loans, $72.2 million of mortgage loans, and $6.0 million of other consumer loans.

(c)	Includes excess balances held at Fed.

(d)	1Q19 increase largely driven by the adoption of ASU 2016-02, "Leases" which resulted in approximately $180 million of lease assets and approximately $200 million of lease liabilities being added to the balance sheet.

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

(f)	Balance fluctuates largely based on the level of FHLB borrowings as a result of loan demand and deposit levels.

(g)	Consists of preferred stock of subsidiaries.

10

---

FHN CONSOLIDATED NET INTEREST INCOME (a)

Quarterly, Unaudited 

																					2Q19 Changes vs.
(Thousands)	2Q19				1Q19				4Q18				3Q18				2Q18				1Q19			2Q18
Interest Income:
Loans, net of unearned income (b)	$	354,067			$	334,167			$	333,935			$	333,088			$	326,069			6		%	9		%
Loans held-for-sale (c)	8,128				9,877				11,759				9,977				11,228				(18	)	%	(28	)	%
Investment securities:
U.S. government agencies	29,075				30,107				30,744				31,106				31,692				(3	)	%	(8	)	%
States and municipalities	347				362				300				129				13				(4	)	%	NM
Corporate bonds	713				712				716				714				720				*			(1	)	%
Other	1,278				895				955				592				342				43		%	NM
Total investment securities	31,413				32,076				32,715				32,541				32,767				(2	)	%	(4	)	%
Trading securities	13,332				13,712				15,533				14,305				14,967				(3	)	%	(11	)	%
Other earning assets:
Federal funds sold	326				733				304				273				207				(56	)	%	57		%
Securities purchased under agreements to resell	3,301				2,336				3,197				3,510				2,944				41		%	12		%
Interest-bearing cash	3,689				10,209				5,884				2,257				1,950				(64	)	%	89		%
Total other earning assets	7,316				13,278				9,385				6,040				5,101				(45	)	%	43		%
Interest income	$	414,256			$	403,110			$	403,327			$	395,951			$	390,132			3		%	6		%
Interest Expense:
Interest-bearing deposits:
Consumer interest	$	25,666			$	24,641			$	21,607			$	17,968			$	14,153			4		%	81		%
Commercial interest	29,927				28,153				22,706				18,302				14,737				6		%	NM
Market-indexed (d)	23,409				29,416				29,366				22,820				19,859				(20	)	%	18		%
Total interest-bearing deposits	79,002				82,210				73,679				59,090				48,749				(4	)	%	62		%
Federal funds purchased	3,142				2,287				1,933				2,355				1,640				37		%	92		%
Securities sold under agreements to repurchase	3,580				3,496				3,329				2,780				1,997				2		%	79		%
Trading liabilities	3,756				2,816				4,320				5,125				4,790				33		%	(22	)	%
Other short-term borrowings	4,316				961				1,571				4,627				6,473				NM			(33	)	%
Term borrowings	14,683				14,337				13,842				13,992				13,230				2		%	11		%
Interest expense	108,479				106,107				98,674				87,969				76,879				2		%	41		%
Net interest income - tax equivalent basis	305,777				297,003				304,653				307,982				313,253				3		%	(2	)	%
Fully taxable equivalent adjustment	(2,167		)		(2,495		)		(2,141		)		(2,282		)		(2,321		)		13		%	7		%
Net interest income	$	303,610			$	294,508			$	302,512			$	305,700			$	310,932			3		%	(2	)	%

NM - Not meaningful

*Amount is less than one percent.

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

(b)	Includes interest on loans in nonaccrual status.

(c)	3Q18 decrease largely driven by the sale of approximately $120 million UPB of loans in 2Q18.

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

11

---

FHN CONSOLIDATED AVERAGE BALANCE SHEET: YIELDS AND RATES

Quarterly, Unaudited 

	2Q19				1Q19				4Q18				3Q18				2Q18
Assets:
Earning assets (a)
Loans, net of unearned income (b)
Commercial loans	5.05		%		5.08		%		5.00		%		4.95		%		4.88		%
Consumer loans	4.65				4.59				4.54				4.51				4.52
Total loans, net of unearned income (c)	4.95				4.96				4.88				4.84				4.79
Loans held-for-sale	5.36				5.89				6.58				5.49				6.18
Investment securities:
U.S. government agencies	2.61				2.68				2.74				2.71				2.69
States and municipalities	3.31				4.33				4.36				3.60				3.12
Corporate bonds	4.41				4.37				4.40				4.36				4.38
Other	34.73				34.56				33.16				31.97				32.48
Total investment securities	2.74				2.79				2.85				2.78				2.74
Trading securities	3.41				3.80				3.80				3.81				3.82
Other earning assets:
Federal funds sold	2.74				2.63				2.76				2.50				2.36
Securities purchased under agreements to resell	2.23				2.21				2.08				1.82				1.62
Interest-bearing cash	2.28				2.41				2.17				1.84				1.75
Total other earning assets	2.27				2.38				2.16				1.85				1.69
Interest income/total earning assets	4.52		%		4.49		%		4.47		%		4.43		%		4.39		%
Liabilities:
Interest-bearing liabilities:
Interest-bearing deposits:
Consumer interest	0.76		%		0.75		%		0.66		%		0.56		%		0.45		%
Commercial interest	1.82				1.74				1.53				1.30				1.05
Market-indexed (d)	2.46				2.52				2.35				2.02				1.77
Total interest-bearing deposits	1.32				1.35				1.23				1.03				0.86
Federal funds purchased	2.43				2.50				2.30				2.05				1.79
Securities sold under agreements to repurchase	2.08				2.06				1.86				1.53				1.20
Trading liabilities	2.75				3.04				3.15				2.90				2.88
Other short-term borrowings	2.66				3.40				2.55				2.13				1.86
Term borrowings (e)	4.96				4.89				4.72				4.53				4.34
Interest expense/total interest-bearing liabilities	1.58				1.57				1.46				1.31				1.14
Net interest spread	2.94		%		2.92		%		3.01		%		3.12		%		3.25		%
Effect of interest-free sources used to fund earning assets	0.40				0.39				0.37				0.32				0.28
Net interest margin	3.34		%		3.31		%		3.38		%		3.44		%		3.53		%
Total loan yield	4.95		%		4.96		%		4.88		%		4.84		%		4.79		%
Total deposit cost	0.99		%		1.03		%		0.92		%		0.76		%		0.64		%

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

(a)	Earning assets yields are expressed net of unearned income.

(b)	Includes loan fees and cash basis interest income.

(c)	Includes loans on nonaccrual status.

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

(e)	Rates are expressed net of unamortized debenture cost for term borrowings.

12

---

FHN CAPITAL HIGHLIGHTS

Quarterly, Unaudited 

																					2Q19 Changes vs.
(Dollars and shares in thousands)	2Q19				1Q19				4Q18				3Q18				2Q18				1Q19			2Q18
Common equity tier 1 capital (a) (b) (c)	$	3,270,483			$	3,239,249			$	3,223,702			$	3,252,825			$	3,002,958			1		%	9		%
Tier 1 capital (a) (b) (c)	3,620,025				3,583,577				3,565,373				3,589,565				3,338,179				1		%	8		%
Total capital (a) (c)	4,009,147				3,963,901				3,940,117				3,973,141				3,760,651				1		%	7		%
Risk-weighted assets (“RWA”) (a) (b)	35,349,600				33,656,950				33,002,595				33,041,617				33,437,145				5		%	6		%
Average assets for leverage (a) (b)	40,022,130				39,717,387				39,221,755				38,962,431				39,003,215				1		%	3		%
Common equity tier 1 ratio (a) (b) (c)	9.25			%	9.62			%	9.77			%	9.84			%	8.98			%
Tier 1 ratio (a) (b) (c)	10.24			%	10.65			%	10.80			%	10.86			%	9.98			%
Total capital ratio (a) (c)	11.34			%	11.78			%	11.94			%	12.02			%	11.25			%
Leverage ratio (a) (b)	9.05			%	9.02			%	9.09			%	9.21			%	8.56			%
Total equity to total assets (c)	11.68			%	11.79			%	11.72			%	11.67			%	11.08			%
Tangible common equity/tangible assets (“TCE/TA”) (c) (d)	7.29			%	7.27			%	7.15			%	7.12			%	6.54			%
Period-end shares outstanding (e)	312,478				315,361				318,573				323,943				325,003				(1	)	%	(4	)	%
Cash dividends declared per common share	$	0.14			$	0.14			$	0.12			$	0.12			$	0.12			*			17		%
Book value per common share (c)	$	14.51			$	14.13			$	13.79			$	13.43			$	12.80			3		%	13		%
Tangible book value per common share (c) (d)	$	9.47			$	9.11			$	8.81			$	8.58			$	7.94			4		%	19		%
Market capitalization (millions)	$	4,665.3			$	4,408.7			$	4,192.4			$	5,591.3			$	5,798.1			6		%	(20	)	%

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

* Amount is less than one percent.

(a)	Current quarter is an estimate.

(b)	See Glossary of Terms for definition.

(c)	3Q18 includes the effect of the pre-tax gain of $212.9 million from the sale of Visa Class B Shares.

(d)	TCE/TA and Tangible book value per common share are non-GAAP measures and are reconciled to Total equity to total assets (GAAP) and to Book value per common share (GAAP), respectively, in the Non-GAAP to GAAP reconciliation on page 22 of this financial supplement.

(e)	2Q19, 1Q19, and 4Q18 decreases largely attributable to shares repurchased under share repurchase programs.

13

---

FHN BUSINESS SEGMENT HIGHLIGHTS

Quarterly, Unaudited 

																					2Q19 Changes vs.
(Thousands)	2Q19				1Q19				4Q18				3Q18				2Q18				1Q19			2Q18
Regional Banking
Net interest income	$	297,328			$	285,913			$	298,288			$	301,099			$	305,935			4		%	(3	)	%
Noninterest income (a)	81,475				73,030				70,003				80,705				80,767				12		%	1		%
Total revenues	378,803				358,943				368,291				381,804				386,702				6		%	(2	)	%
Provision for loan losses	17,775				13,443				8,488				7,205				4,613				32		%	NM
Noninterest expense	193,268				199,468				206,001				207,549				210,038				(3	)	%	(8	)	%
Income before income taxes	167,760				146,032				153,802				167,050				172,051				15		%	(2	)	%
Provision for income taxes	39,504				33,860				36,077				39,195				40,424				17		%	(2	)	%
Net income	$	128,256			$	112,172			$	117,725			$	127,855			$	131,627			14		%	(3	)	%
Fixed Income
Net interest income	$	6,171			$	7,331			$	9,011			$	9,054			$	9,200			(16	)	%	(33	)	%
Noninterest income	65,622				53,807				39,678				41,124				38,363				22		%	71		%
Total revenues	71,793				61,138				48,689				50,178				47,563				17		%	51		%
Noninterest expense	55,770				50,774				46,516				46,561				46,933				10		%	19		%
Income before income taxes	16,023				10,364				2,173				3,617				630				55		%	NM
Provision/(benefit) for income taxes	3,781				2,397				408				719				(69		)		58		%	NM
Net income	$	12,242			$	7,967			$	1,765			$	2,898			$	699			54		%	NM
Corporate
Net interest income/(expense)	$	(7,000	)		$	(7,803	)		$	(15,356	)		$	(15,462	)		$	(17,177	)		10		%	59		%
Noninterest income (b)	9,400				13,352				(1,411		)		222,620				8,738				(30	)	%	8		%
Total revenues	2,400				5,549				(16,767		)		207,158				(8,439		)		(57	)	%	NM
Noninterest expense (c)	55,500				40,374				23,144				33,561				67,868				37		%	(18	)	%
Income/(loss) before income taxes	(53,100		)		(34,825		)		(39,911		)		173,597				(76,307		)		(52	)	%	30		%
Provision/ (benefit) for income taxes (d)	(13,150		)		(11,396		)		(14,608		)		40,458				(22,960		)		(15	)	%	43		%
Net income/(loss)	$	(39,950	)		$	(23,429	)		$	(25,303	)		$	133,139			$	(53,347	)		(71	)	%	25		%
Non-Strategic
Net interest income	$	7,111			$	9,067			$	10,569			$	11,009			$	12,974			(22	)	%	(45	)	%
Noninterest income (e)	1,496				856				2,004				4,523				(343		)		75		%	NM
Total revenues	8,607				9,923				12,573				15,532				12,631				(13	)	%	(32	)	%
Provision/(provision credit) for loan losses	(4,775		)		(4,443		)		(2,488		)		(5,205		)		(4,613		)		(7	)	%	(4	)	%
Noninterest expense (f)	(4,144		)		5,474				6,271				6,360				7,929				NM			NM
Income before income taxes	17,526				8,892				8,790				14,377				9,315				97		%	88		%
Provision for income taxes	4,332				2,197				2,172				3,553				2,302				97		%	88		%
Net income	$	13,194			$	6,695			$	6,618			$	10,824			$	7,013			97		%	88		%
Total Consolidated
Net interest income	$	303,610			$	294,508			$	302,512			$	305,700			$	310,932			3		%	(2	)	%
Noninterest income	157,993				141,045				110,274				348,972				127,525				12		%	24		%
Total revenues	461,603				435,553				412,786				654,672				438,457				6		%	5		%
Provision/(provision credit) for loan losses	13,000				9,000				6,000				2,000				—				44		%	NM
Noninterest expense	300,394				296,090				281,932				294,031				332,768				1		%	(10	)	%
Income before income taxes	148,209				130,463				124,854				358,641				105,689				14		%	40		%
Provision for income taxes	34,467				27,058				24,049				83,925				19,697				27		%	75		%
Net income	$	113,742			$	103,405			$	100,805			$	274,716			$	85,992			10		%	32		%

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

NM - Not meaningful

(a)	4Q18 includes an $8.7 million unfavorable adjustment related to the return of excess fees received on Capital Bank debit card transactions.

(b)	1Q19 includes higher deferred compensation income driven by equity market valuations; 4Q18 includes lower deferred compensation income driven by equity market valuations and a $1.8 million negative valuation adjustment on HFS consumer loans included in the Non-Strategic segment; 3Q18 includes a pre-tax gain of $212.9 million from the sale of Visa Class B Shares.

(c)	Refer to the Acquisition, Restructuring, and Rebranding expense tables on page 8 for additional information about variability in quarterly balances; 2Q18 includes $4.1 million of valuation adjustments associated with derivatives related to prior sales of Visa Class B shares.

(d)	3Q18 reflects the tax effect on the gain on the sale of Visa Class B Shares.

(e)	2Q19 and 3Q18 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.

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

14

---

FHN REGIONAL BANKING

Quarterly, Unaudited 

																					2Q19 Changes vs.
	2Q19				1Q19				4Q18				3Q18				2Q18				1Q19			2Q18
Income Statement (thousands)
Net interest income	$	297,328			$	285,913			$	298,288			$	301,099			$	305,935			4		%	(3	)	%
Provision for loan losses	17,775				13,443				8,488				7,205				4,613				32		%	NM
Noninterest income:
NSF / Overdraft fees (a)	12,347				11,579				14,128				13,583				12,663				7		%	(2	)	%
Cash management fees	8,026				8,857				9,073				9,237				9,193				(9	)	%	(13	)	%
Debit card income (b)	4,960				5,372				(3,142		)		7,811				8,395				(8	)	%	(41	)	%
Other	5,275				4,195				3,554				3,357				4,260				26		%	24		%
Total deposit transactions and cash management	30,608				30,003				23,613				33,988				34,511				2		%	(11	)	%
Brokerage, management fees and commissions	14,118				12,630				13,377				14,199				13,740				12		%	3		%
Trust services and investment management	7,902				7,056				6,961				7,453				8,147				12		%	(3	)	%
Bankcard income	6,594				7,039				7,738				7,866				7,202				(6	)	%	(8	)	%
Other service charges	5,460				3,711				3,255				3,447				3,557				47		%	54		%
Miscellaneous revenue	16,793				12,591				15,059				13,752				13,610				33		%	23		%
Total noninterest income	81,475				73,030				70,003				80,705				80,767				12		%	1		%
Noninterest expense:
Employee compensation, incentives, and benefits	76,752				81,796				82,304				81,140				81,836				(6	)	%	(6	)	%
Other (c)	116,516				117,672				123,697				126,409				128,202				(1	)	%	(9	)	%
Total noninterest expense	193,268				199,468				206,001				207,549				210,038				(3	)	%	(8	)	%
Income before income taxes	$	167,760			$	146,032			$	153,802			$	167,050			$	172,051			15		%	(2	)	%
PPNR (d)	185,535				159,475				162,290				174,255				176,664				16		%	5		%
Balance Sheet (millions)
Average loans	$	27,533			$	26,107			$	25,877			$	25,964			$	25,814			5		%	7		%
Average other earning assets	47				39				41				60				57				21		%	(18	)	%
Total average earning assets	27,580				26,146				25,918				26,024				25,871				5		%	7		%
Total average deposits	29,954				29,590				28,316				27,565				27,411				1		%	9		%
Total period-end deposits	30,272				30,354				29,344				27,726				27,840				*			9		%
Total period-end assets	31,376				29,544				29,126				28,739				28,965				6		%	8		%
Key Statistics
Return on average assets (quarters are annualized) (e)	1.70%				1.58%				1.64%				1.78%				1.86%
Return on allocated equity (e) (f)	17.38%				15.54%				15.86%				16.90%				17.36%
Fee income to total revenue (e)	21.51%				20.35%				19.01%				21.14%				20.89%
Efficiency ratio (e)	51.02%				55.57%				55.93%				54.36%				54.37%
Net interest margin (g)	4.35%				4.47%				4.60%				4.62%				4.78%
Net interest spread	3.99%				3.98%				4.04%				4.08%				4.15%
Loan average yield	4.88%				4.86%				4.78%				4.69%				4.65%
Deposit average rate	0.89%				0.88%				0.74%				0.61%				0.50%
Regional banking net charge-offs/(recoveries)	$	7,841			$	5,540			$	12,597			$	3,693			$	4,325			42		%	81		%
Financial center locations	292				292				292				292				292				*			*

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

NM - Not meaningful

* Amount is less than one percent

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

(b)	4Q18 includes an $8.7 million unfavorable adjustment related to the return of excess fees received on Capital Bank debit card transactions.

(c)	3Q18 includes a $1.6 million expense reversal related to a recovery of prior litigation losses.

(d)	Pre-provision net revenue is not a GAAP number but is used in regulatory stress test reporting. The presentation of PPNR in this Financial Supplement follows the regulatory definition.

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

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

(g)	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.

15

---

FHN FIXED INCOME

Quarterly, Unaudited

																					2Q19 Changes vs.
	2Q19				1Q19				4Q18				3Q18				2Q18				1Q19			2Q18
Income Statement (thousands)
Net interest income	$	6,171			$	7,331			$	9,011			$	9,054			$	9,200			(16	)	%	(33	)	%
Noninterest income:
Fixed income product revenue	54,533				44,472				30,028				34,268				29,940				23		%	82		%
Other	11,089				9,335				9,650				6,856				8,423				19		%	32		%
Total noninterest income	65,622				53,807				39,678				41,124				38,363				22		%	71		%
Noninterest expense	55,770				50,774				46,516				46,561				46,933				10		%	19		%
Income before income taxes	$	16,023			$	10,364			$	2,173			$	3,617			$	630			55		%	NM
Fixed income product average daily revenue	$	866			$	729			$	492			$	544			$	468			19		%	85		%
Balance Sheet (millions)
Average trading inventory	$	1,563			$	1,443			$	1,633			$	1,500			$	1,566			8		%	*
Average loans held-for-sale	528				571				608				617				539				(8	)	%	(2	)	%
Average other earning assets	670				491				675				826				797				36		%	(16	)	%
Total average earning assets	2,761				2,505				2,916				2,943				2,902				10		%	(5	)	%
Total period-end assets	3,233				3,094				2,789				3,742				3,460				4		%	(7	)	%
Key Statistics
Return on average assets (a)	1.57		%		1.13		%		0.22		%		0.35		%		0.09		%
Return on allocated equity (a) (b)	24.29		%		16.20		%		3.38		%		5.47		%		1.33		%
Efficiency ratio (a)	77.68		%		83.05		%		95.54		%		92.79		%		98.68		%
Net interest margin (c)	0.92		%		1.19		%		1.26		%		1.26		%		1.30		%

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

NM - Not meaningful

* Amount is less than one percent.

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

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

(c)	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, Unaudited

																					2Q19 Changes vs.
	2Q19				1Q19				4Q18				3Q18				2Q18				1Q19			2Q18
Income Statement (thousands)
Net interest income/(expense)	$	(7,000	)		$	(7,803	)		$	(15,356	)		$	(15,462	)		$	(17,177	)		10		%	59		%
Noninterest income excluding securities gains/(losses) (a)	9,351				13,321				(1,383		)		9,762				8,706				(30	)	%	7		%
Securities gains/(losses), net (b)	49				31				(28		)		212,858				32				57		%	52		%
Noninterest expense (c)	55,500				40,374				23,144				33,561				67,868				37		%	(18	)	%
Income/(loss) before income taxes	$	(53,100	)		$	(34,825	)		$	(39,911	)		$	173,597			$	(76,307	)		(52	)	%	30		%
Average Balance Sheet (millions)
Average investment securities	$	4,568			$	4,594			$	4,582			$	4,675			$	4,773			(1	)	%	(4	)	%
Total earning assets	$	5,295			$	6,463			$	5,732			$	5,213			$	5,254			(18	)	%	1		%
Deferred Compensation (thousands)
Other Income	$	1,938			$	5,474			$	(6,124	)		$	1,458			$	991			(65	)	%	96		%
Employee compensation, incentives, and benefits	$	2,150			$	6,221			$	(6,983	)		$	1,968			$	866			(65	)	%	NM

Estimated effective duration of securities portfolio 2.8 years in 2Q19 compared to 3.5 years in 1Q19

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

NM - Not Meaningful

(a)	1Q19 includes higher deferred compensation income driven by equity market valuations; 4Q18 includes lower deferred compensation income driven by equity market valuations and a $1.8 million negative valuation adjustment on HFS consumer loans included in the Non-Strategic segment; 3Q18 includes $.8 million of gains on the sales of buildings.

(b)	3Q18 includes a pre-tax gain of $212.9 million from the sale of Visa Class B Shares.

(c)	Refer to the Acquisition, Restructuring, and Rebranding expense tables on page 8 for additional information about variability in quarterly balances; 2Q18 includes $4.1 million of valuation adjustments associated with derivatives related to prior sales of Visa Class B shares.

16

---

FHN NON-STRATEGIC

Quarterly, Unaudited

 

																					2Q19 Changes vs.
	2Q19				1Q19				4Q18				3Q18				2Q18				1Q19			2Q18
Income Statement (thousands)
Net interest income	$	7,111			$	9,067			$	10,569			$	11,009			$	12,974			(22	)	%	(45	)	%
Provision/(provision credit) for loan losses	(4,775		)		(4,443		)		(2,488		)		(5,205		)		(4,613		)		(7	)	%	(4	)	%
Noninterest income (a)	1,496				856				2,004				4,523				(343		)		75		%	NM
Noninterest expense (b)	(4,144		)		5,474				6,271				6,360				7,929				NM			NM
Income before income taxes	$	17,526			$	8,892			$	8,790			$	14,377			$	9,315			97		%	88		%
Average Balance Sheet (millions)
Loans	$	1,011			$	1,087			$	1,161			$	1,272			$	1,385			(7	)	%	(27	)	%
Other assets	81				88				98				100				176				(8	)	%	(54	)	%
Total assets	1,092				1,175				1,259				1,372				1,561				(7	)	%	(30	)	%
Key Statistics
Return on average assets (c)	4.85		%		2.31		%		2.09		%		3.13		%		1.80		%
Return on allocated equity (c) (d)	63.74		%		25.49		%		22.06		%		28.23		%		17.27		%
Fee income to total revenue (c)	17.38		%		8.63		%		15.94		%		29.12		%		NM
Efficiency ratio (c)	NM				55.16		%		49.88		%		40.95		%		62.77		%
Net interest margin (e)	2.64		%		3.11		%		3.35		%		3.19		%		3.34		%
Net charge-offs/(recoveries)	$	(2,679	)		$	(1,027	)		$	(1,062	)		$	(2,190	)		$	(2,593	)		NM			(3	)	%

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

NM - Not meaningful

(a)	2Q19 and 3Q18 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.

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

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

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

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

17

---

FHN ASSET QUALITY: CONSOLIDATED

Quarterly, Unaudited 

																																2Q19 Changes vs.
(Dollars in thousands)		2Q19						1Q19						4Q18						3Q18						2Q18						1Q19		2Q18
Allowance for Loan Losses Walk-Forward
Beginning reserve		$	184,911					$	180,424					$	185,959					$	185,462					$	187,194					2%		(1)%
Provision/(provision credit) for loan losses		13,000						9,000						6,000						2,000						—						NM		NM
Charge-offs		(12,223				)		(10,527				)		(17,824				)		(9,482				)		(10,008				)		(16)%		(22)%
Recoveries		7,061						6,014						6,289						7,979						8,276						17%		(15)%
Ending balance		$	192,749					$	184,911					$	180,424					$	185,959					$	185,462					4%		4%
Reserve for unfunded commitments		7,524						8,014						7,618						7,581						6,536						(6)%		15%
Total allowance for loan losses plus reserve for unfunded commitments		$	200,273					$	192,925					$	188,042					$	193,540					$	191,998					4%		4%
Allowance for Loan Losses (a)
Regional Banking		$	170,849					$	160,914					$	153,015					$	157,126					$	153,617					6%		11%
Non-Strategic		21,900						23,997						27,409						28,833						31,845						(9)%		(31)%
Total allowance for loan losses		$	192,749					$	184,911					$	180,424					$	185,959					$	185,462					4%		4%
Nonperforming Assets
Regional Banking
Nonperforming loans		$	145,265					$	115,977					$	79,339					$	76,145					$	50,856					25%		NM
OREO		13,251						16,698						18,535						20,571						22,095						(21)%		(40)%
Total Regional Banking		$	158,516					$	132,675					$	97,874					$	96,716					$	72,951					19%		NM
Non-Strategic
Nonperforming loans		$	57,654					$	63,960					$	66,703					$	68,485					$	72,190					(10)%		(20)%
Nonperforming loans held-for-sale after fair value adjustments		4,514						5,219						5,328						5,675						5,769						(14)%		(22)%
OREO		3,342						3,978						3,852						5,155						4,361						(16)%		(23)%
Total Non-Strategic		$	65,510					$	73,157					$	75,883					$	79,315					$	82,320					(10)%		(20)%
Corporate
Nonperforming loans		$	1,667					$	1,687					$	1,707					$	1,727					$	1,746					(1)%		(5)%
Total nonperforming assets		$	225,693					$	207,519					$	175,464					$	177,758					$	157,017					9%		44%
Net Charge-Offs
Regional Banking		$	7,841					$	5,540					$	12,597					$	3,693					$	4,325					42%		81%
Non-Strategic		(2,679				)		(1,027				)		(1,062				)		(2,190				)		(2,593				)		NM		(3)%
Total net charge-offs/(recoveries)		$	5,162					$	4,513					$	11,535					$	1,503					$	1,732					14%		NM
Consolidated Key Ratios (b)
30+ Delinq. % (c)		0.20			%			0.23			%			0.27			%			0.35			%			0.31			%
NPL % (d) (e)		0.69						0.65						0.54						0.54						0.45
NPA %		0.74						0.72						0.62						0.63						0.55
Net charge-offs % (f)		0.07						0.07						0.17						0.02						0.03
Allowance / loans %		0.65						0.66						0.66						0.68						0.67
Allowance / NPL		0.94			x			1.02			x			1.22			x			1.27			x			1.49			x
Allowance / NPA		0.87			x			0.91			x			1.06			x			1.08			x			1.23			x
Allowance / net charge-offs		9.31			x			10.10			x			3.94			x			31.20			x			26.70			x
Other
Loans past due 90 days or more and still accruing (g)		$	28,663					$	30,896					$	39,992					$	49,352					$	44,467					(7)%		(36)%
Guaranteed portion (g)		5,628						5,725						7,237						7,772						8,412						(2)%		(33)%
Period-end loans, net of unearned income (millions)		29,713						27,990						27,536						27,350						27,702						6%		7%
30+ delinquencies (thousands)		$	58,861					$	63,693					$	75,164					$	95,092					$	85,139					(8)%		(31)%

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

NM - Not meaningful

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

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

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

(d)	3Q18 increase in NPLs as a percentage of total loans was driven by one large credit.

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

(f) 4Q18 increase in charge-offs as a percentage of total loans was primarily driven by two credits.

(g)	Includes loans held-for-sale.

18

---

FHN ASSET QUALITY: CONSOLIDATED

Quarterly, Unaudited 

																											2Q19 Changes vs.
		2Q19					1Q19					4Q18					3Q18					2Q18					1Q19		2Q18
Key Portfolio Details
C&I
Period-end loans ($ millions)		$	19,054				$	17,176				$	16,515				$	16,044				$	16,439				11%		16%
30+ Delinq. % (a)		0.05			%		0.07			%		0.06			%		0.15			%		0.14			%
NPL % (b) (c) (d)		0.56					0.44					0.24					0.26					0.12
Charge-offs % (qtr. annualized) (e) (f)		0.14					0.06					0.20					0.01					0.06
Allowance / loans %		0.61			%		0.60			%		0.60			%		0.63			%		0.59			%
Allowance / net charge-offs		4.77			x		11.26			x		3.06			x		74.66			x		10.73			x
Commercial Real Estate
Period-end loans ($ millions)		$	3,861				$	3,947				$	4,031				$	4,237				$	4,136				(2)%		(7)%
30+ Delinq. % (a) (g)		0.07			%		0.04			%		0.06			%		0.20			%		0.06			%
NPL %		0.07					0.07					0.07					0.02					0.03
Charge-offs % (qtr. annualized)		0.02					0.04					0.05					NM					0.01
Allowance / loans %		0.85			%		0.87			%		0.78			%		0.80			%		0.82			%
Allowance / net charge-offs		39.25					22.50			x		15.45			x		NM					55.04			x
Consumer Real Estate
Period-end loans ($ millions)		$	6,110				$	6,152				$	6,250				$	6,301				$	6,328				(1)%		(3)%
30+ Delinq. % (a)		0.62			%		0.66			%		0.74			%		0.73			%		0.67			%
NPL %		1.25					1.34					1.32					1.27					1.25
Charge-offs % (qtr. annualized)		NM					NM					NM					NM					NM
Allowance / loans %		0.37			%		0.39			%		0.42			%		0.46			%		0.54			%
Allowance / net charge-offs		NM					NM					NM					NM					NM
Permanent Mortgage
Period-end loans ($ millions)		$	193				$	209				$	222				$	237				$	250				(8)%		(23)%
30+ Delinq. % (a)		2.22			%		1.95			%		3.21			%		3.56			%		2.59			%
NPL %		9.28					10.01					9.76					9.41					9.76
Charge-offs % (qtr. annualized)		NM					NM					NM					NM					NM
Allowance / loans %		4.49			%		4.82			%		4.95			%		4.68			%		4.68			%
Allowance / net charge-offs		NM					NM					NM					NM					NM
Credit Card and Other
Period-end loans ($ millions)		$	495				$	506				$	518				$	531				$	549				(2)%		(10)%
30+ Delinq. % (a)		1.06			%		1.20			%		1.63			%		1.64			%		1.80			%
NPL %		0.09					0.09					0.12					0.13					0.07
Charge-offs % (qtr. annualized)		2.17					2.44					3.32					3.32					2.61
Allowance / loans %		2.46			%		2.50			%		2.46			%		2.21			%		1.63			%
Allowance / net charge-offs		1.13			x		1.01			x		0.73			x		0.66			x		0.62			x

NM - Not meaningful

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

(b)	3Q18 increase in NPLs as a percentages of total loans was driven by one large credit.

(c) 1Q19 increase in NPLs as a percentages of total loans was primarily driven by three credits.

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

(e)	4Q18 increase in charge-offs as a percentage of loans was primarily driven by two credits.

(f) 2Q19 increase in charge-offs as a percentage of total loans was primarily driven by one credit.

(g)	3Q18 increase in delinquencies primarily driven by two credits.

19

---

FHN ASSET QUALITY: REGIONAL BANKING

Quarterly, Unaudited 

																											2Q19 Changes vs.
		2Q19					1Q19					4Q18					3Q18					2Q18					1Q19		2Q18
Total Regional Banking (a) (b)
Period-end loans ($ millions)		$	28,711				$	26,898				$	26,385				$	26,082				$	26,324				7%		9%
30+ Delinq. % (c)		0.15			%		0.17			%		0.19			%		0.26			%		0.23			%
NPL % (d) (e) (f)		0.51					0.43					0.30					0.29					0.19
Charge-offs % (qtr. annualized) (g) (h)		0.11					0.09					0.19					0.06					0.07
Allowance / loans %		0.60			%		0.60			%		0.58			%		0.60			%		0.58			%
Allowance / net charge-offs		5.43			x		7.16			x		3.06			x		10.73			x		8.86			x
Key Portfolio Details
C&I (b)
Period-end loans ($ millions)		$	18,710				$	16,812				$	16,149				$	15,671				$	16,015				11%		17%
30+ Delinq. % (c)		0.05			%		0.06			%		0.06			%		0.15			%		0.15			%
NPL % (d) (e) (f)		0.56					0.43					0.23					0.25					0.10
Charge-offs % (qtr. annualized) (g) (h)		0.14					0.06					0.21					0.01					0.06
Allowance / loans %		0.61			%		0.61			%		0.60			%		0.63			%		0.60			%
Allowance / net charge-offs		4.73			x		10.98			x		3.01			x		71.90			x		10.57
Commercial Real Estate (b)
Period-end loans ($ millions)		$	3,787				$	3,867				$	3,955				$	4,120				$	4,038				(2)%		(6)%
30+ Delinq. % (c) (i)		0.07			%		0.04			%		0.06			%		0.21			%		0.07			%
NPL %		0.07					0.07					0.08					0.02					0.04
Charge-offs % (qtr. annualized)		0.02					0.04					0.05					NM					0.02
Allowance / loans %		0.77			%		0.80			%		0.71			%		0.73			%		0.77			%
Allowance / net charge-offs		34.79					20.16					13.63					NM					50.39
Consumer Real Estate (b)
Period-end loans ($ millions)		$	5,773				$	5,780				$	5,845				$	5,859				$	5,839				*		(1)%
30+ Delinq. % (c)		0.50			%		0.52			%		0.58			%		0.56			%		0.51			%
NPL %		0.66					0.71					0.67					0.61					0.56
Charge-offs % (qtr. annualized)		NM					0.04					0.07					0.03					NM
Allowance / loans %		0.25			%		0.26			%		0.25			%		0.28			%		0.31			%
Allowance / net charge-offs		NM					6.17					3.38			x		10.63					NM
Credit Card, Permanent Mortgage, and Other (a)
Period-end loans ($ millions)		$	441				$	439				$	436				$	432				$	432				*		2%
30+ Delinq. % (c)		0.72			%		0.74			%		0.95			%		0.80			%		0.80			%
NPL %		0.06					0.08					0.09					0.08					0.11
Charge-offs % (qtr. annualized)		1.82					2.08					2.55					2.98					2.25
Allowance / loans %		2.76			%		2.87			%		2.90			%		2.64			%		2.08			%
Allowance / net charge-offs		1.52			x		1.38			x		1.13			x		0.90			x		0.93			x
ASSET QUALITY: CORPORATE
Permanent Mortgage
Period-end loans ($ millions)		$	35				$	38				$	39				$	42				$	44				(8)%		(20)%
30+ Delinq. % (c)		4.03			%		4.54			%		4.37			%		4.21			%		3.32			%
NPL %		4.79					4.49					4.35					4.12					3.94
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

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

NM - Not meaningful

* Amount is less than one percent.

(a) In 3Q18, the acquired CBF indirect auto portfolio was retrospectively reclassed through 4Q17 from the Regional Banking segment to the Non-Strategic segment.

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

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

(d) 3Q18 increase in NPLs as a percentages of total loans was driven by one large credit.

(e) 1Q19 increases in NPLs as a percentage of total loans was primarily driven by three credits.

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

(g) 4Q18 increase in charge-offs as a percentage of loans was primarily driven by two credits.

(h) 2Q19 increase in charge-offs as a percentage of total loans was primarily driven by one credit.

(i) 3Q18 increase in delinquencies primarily driven by two credits.

20

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FHN ASSET QUALITY: NON-STRATEGIC

Quarterly, Unaudited 

																											2Q19 Changes vs.
		2Q19					1Q19					4Q18					3Q18					2Q18					1Q19		2Q18
Total Non-Strategic (a) (b)
Period-end loans ($ millions)		$	967				$	1,054				$	1,112				$	1,226				$	1,334				(8)%		(28)%
30+ Delinq. % (c)		1.42			%		1.63			%		2.15			%		2.08			%		1.82			%
NPL %		5.96					6.06					6.00					5.59					5.41
Charge-offs % (qtr. annualized)		NM					NM					NM					NM					NM
Allowance / loans %		2.27			%		2.27			%		2.47			%		2.35			%		2.39			%
Allowance / net charge-offs		NM					NM					NM					NM					NM
Key Portfolio Details
Commercial (b)
Period-end loans ($ millions)		$	418				$	444				$	441				$	490				$	522				(6)%		(20)%
30+ Delinq. % (c)		—			%		0.38			%		0.39			%		—			%		—			%
NPL %		0.66					0.64					0.65					0.60					0.57
Charge-offs % (qtr. annualized)		0.02					NM					NM					NM					NM
Allowance / loans %		1.20			%		1.10			%		0.99			%		1.02			%		0.80			%
Allowance / net charge-offs		56.57					NM					NM					NM					NM
Consumer Real Estate (b)
Period-end loans ($ millions)		$	337				$	372				$	405				$	442				$	489				(9)%		(31)%
30+ Delinq. % (c)		2.60			%		2.77			%		3.07			%		3.06			%		2.63			%
NPL %		11.40					11.25					10.76					10.08					9.55
Charge-offs % (qtr. annualized)		NM					NM					NM					NM					NM
Allowance / loans %		2.44			%		2.41			%		2.95			%		2.81			%		3.28			%
Allowance / net charge-offs		NM					NM					NM					NM					NM
Permanent Mortgage
Period-end loans ($ millions)		$	155				$	168				$	179				$	191				$	201				(8)%		(23)%
30+ Delinq. % (c)		1.67			%		1.14			%		2.87			%		3.31			%		2.28			%
NPL %		10.36					11.29					10.97					10.60					11.08
Charge-offs % (qtr. annualized)		NM					NM					NM					NM					NM
Allowance / loans %		5.57			%		5.96			%		6.10			%		5.76			%		5.77			%
Allowance / net charge-offs		NM					NM					NM					NM					NM
Other Consumer (a)
Period-end loans ($ millions)		$	57				$	70				$	87				$	103				$	122				(19)%		(53)%
30+ Delinq. % (c)		4.21			%		4.61			%		5.35			%		5.47			%		5.63			%
NPL %		0.72					0.56					0.69					0.66					0.19
Charge-offs % (qtr. annualized)		4.41					4.35					6.77					4.47					3.71
Allowance / loans %		0.09			%		0.20			%		0.15			%		0.37			%		0.05			%
Allowance / net charge-offs		0.02			x		0.04			x		0.02			x		0.08					0.01

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

NM - Not meaningful

(a)	In 3Q18, the acquired CBF indirect auto portfolio was retrospectively reclassed through 4Q17 from the Regional Banking segment to the Non-Strategic segment.

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

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

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FHN NON-GAAP TO GAAP RECONCILIATION

Quarterly, Unaudited

(Dollars and shares in thousands, except per share data)	2Q19				1Q19				4Q18				3Q18				2Q18
Tangible Common Equity (Non-GAAP)
(A) Total equity (GAAP)	$	4,926,081			$	4,846,521			$	4,785,380			$	4,741,931			$	4,549,749
Less: Noncontrolling interest (a)	295,431				295,431				295,431				295,431				295,431
Less: Preferred stock (a)	95,624				95,624				95,624				95,624				95,624
(B) Total common equity	$	4,535,026			$	4,455,466			$	4,394,325			$	4,350,876			$	4,158,694
Less: Intangible assets (GAAP) (b)	1,575,399				1,581,605				1,587,821				1,571,317				1,577,231
(C) Tangible common equity (Non-GAAP)	$	2,959,627			$	2,873,861			$	2,806,504			$	2,779,559			$	2,581,463
Tangible Assets (Non-GAAP)
(D) Total assets (GAAP)	$	42,171,770			$	41,099,003			$	40,832,258			$	40,635,924			$	41,076,795
Less: Intangible assets (GAAP) (b)	1,575,399				1,581,605				1,587,821				1,571,317				1,577,231
(E) Tangible assets (Non-GAAP)	$	40,596,371			$	39,517,398			$	39,244,437			$	39,064,607			$	39,499,564
Average Tangible Common Equity (Non-GAAP)
(F) Average total equity (GAAP)	$	4,869,161			$	4,809,235			$	4,730,698			$	4,611,302			$	4,552,546
Less: Average noncontrolling interest (a)	295,431				295,431				295,431				295,431				295,431
Less: Average preferred stock (a)	95,624				95,624				95,624				95,624				95,624
(G) Total average common equity	$	4,478,106			$	4,418,180			$	4,339,643			$	4,220,247			$	4,161,491
Less: Average intangible assets (GAAP) (b)	1,578,505				1,584,694				1,569,533				1,572,886				1,569,449
(H) Average tangible common equity (Non-GAAP)	$	2,899,601			$	2,833,486			$	2,770,110			$	2,647,361			$	2,592,042
Annualized Net Income/(loss) Available to Common Shareholders
(I) Net income /(loss) available to common shareholders (annualized) (GAAP)	$	438,562			$	401,642			$	382,238			$	1,072,318			$	327,257
Period-end Shares Outstanding
(J) Period-end shares outstanding	312,478				315,361				318,573				323,943				325,003
Ratios
(I)/(G) Return on average common equity (“ROCE”) (GAAP)	9.79			%	9.09			%	8.81			%	25.41			%	7.86			%
(I)/(H) Return on average tangible common equity (“ROTCE”) (Non-GAAP)	15.12			%	14.17			%	13.80			%	40.51			%	12.63			%
(A)/(D) Total equity to total assets (GAAP)	11.68			%	11.79			%	11.72			%	11.67			%	11.08			%
(C)/(E) Tangible common equity to tangible assets (“TCE/TA”) (Non-GAAP)	7.29			%	7.27			%	7.15			%	7.12			%	6.54			%
(B)/(J) Book value per common share (GAAP)	$	14.51			$	14.13			$	13.79			$	13.43			$	12.80
(C)/(J) Tangible book value per common share (Non-GAAP)	$	9.47			$	9.11			$	8.81			$	8.58			$	7.94

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

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

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FHN GLOSSARY OF TERMS

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

Risk-Weighted Assets: 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.

 

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 Key Ratios

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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.

 

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Asset Quality - Consolidated Key Ratios

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

 

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

 

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

 

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

 

Allowance / NPL: Ratio is allowance for loan losses to nonperforming loans in the loan portfolio.

 

Allowance / NPA: Ratio is allowance for loan losses to nonperforming assets related to the loan portfolio.

 

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

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23

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First Horizon National Corporation Second Quarter 2019 Earnings July 16, 2019

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Portions of this presentation use non-GAAP financial information. Each of those portions is so noted, and a reconciliation of that non-GAAP information to comparable GAAP information is provided in a footnote or in the appendix at the end of this presentation. Annualized, pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results. This presentation also includes certain non-GAAP financial measures related to “tangible common equity” and certain financial measures excluding notable items, including merger-related charges. Notable items include certain revenue or expense items that may occur in a reporting period which management does not consider indicative of ongoing financial performance. Management believes it is useful for the investment community to consider financial metrics with and without notable items in order to enable a better understanding of company results, facilitate comparability of period-to-period financial results, and to evaluate and forecast those results. Although FHN has procedures in place to ensure that these measures are calculated using the appropriate GAAP or regulatory components, they have limitations as analytical tools and should not be considered in isolation, or as a substitute for analysis of results under GAAP. For more information on these calculations and to view the reconciliations to the most comparable GAAP measures, please refer to the appendix of this presentation. This presentation contains forward-looking statements, which may include guidance, involving significant risks and uncertainties which will be 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 those in the forward-looking statements. These factors are outlined in our recent earnings and other press releases and in more detail in the most current 10-Q and 10-K. 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. 2

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2Q19 Highlights Delivering Significant Earnings and Balance Sheet Growth Momentum Earnings Reported/Adjusted1 EPS up 13% & 20% LQ, respectively Growth (All comparisons are 2Q19 vs 1Q19) 2Q19 EPS $0.35 +13% Reported ROTCE1/ROA Adjusted EPS1 $0.42 +20% Strong at 15.1% and 1.11% Returns Adjusted1 ROTCE1/ROA Revenue $462mm +6% at 18.2% and 1.32% ROTCE1 15.1% +95bps Adjusted ROTCE1 18.2% +206bps Significant Revenue growth of 6% on expense Operating growth of 1% LQ; adjusted Efficiency Ratio 65.1% -290bps expenses1 down 2% LQ Leverage Adj. Efficiency Ratio1 59.0% -489bps Avg. Total Loans $28.7B +5% Balance Loans up 5% LQ Avg. Total Deposits $32.0B -2% Sheet Regional bank deposits up 1% LQ Growth LQ – Linked Quarter. All comparisons are 2Q19 vs 1Q19, unless otherwise noted. All Deposit and Loan growth metrics are calculated with average balances, unless otherwise noted. 1Adjusted EPS, ROTCE, Adjusted ROTCE, Adjusted ROA, Adjusted Expenses, and Adjusted Efficiency Ratio are Non-GAAP numbers that are reconciled in the appendix. Adjusted numbers exclude notable 3 items as outlined in the appendix.

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Delivering on Key Strategic Priorities Dominate Tennessee • TN average loan and deposit growth of 1% LQ • Middle TN produced 2% average growth in loans and deposits LQ Profitably Grow Key Markets & Specialty Areas • Specialty average loan growth of 14% LQ • Average deposits grew 2% LQ in key markets and 3% in specialty areas Optimize The Expense Base • Targeting $50mm+ in cost saves for full year 2019 with ~$20mm of total reinvestment • Actions taken in 1H19 to achieve $36mm of efficiencies with $6mm of reinvestment Deploy Capital Effectively • Tangible book value growth of 4% LQ • Total payout ratio at 86% ￮ Share buybacks of $50mm at average price of $14.30 in 2Q19 ￮ Quarterly dividend declared of $0.14 per common share; 41% dividend payout All comparisons are 2Q19 vs 1Q19, unless otherwise noted. All Deposit and Loan growth metrics are calculated with average balances, unless otherwise noted. LQ – Linked Quarter. 4

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FINANCIAL RESULTS 5

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Financial Results 1 Actual Adjusted¹ • EPS up 13% LQ, up 20% on adjusted basis 2Q19 1Q19 2Q19 1Q19 LQ % LQ % • Strong quarterly average loan and core Actual Actual Adjusted¹ Adjusted¹ $ in millions except per share data Change Change customer deposit growth Net Interest Income $304 $295 +3% $304 $295 +3% ￮ Regional Bank average loans up 5% LQ Fee Income $158 $141 +12% $158 $141 +12% ￮ Regional Bank average deposits up 1% LQ Total Revenue $462 $436 +6% $462 $436 +6% • Total revenue up 6% LQ Expense $300 $296 +1% $272 $278 -2% Loan Loss Provision $13 $9 +44% $13 $9 +44% ￮ Strong fee income increase driven by Pre-Tax Income $148 $130 +14% $176 $148 +19% higher revenues in Fixed Income; $866k 2 ADR, up 19% LQ and up 85% YOY NIAC $109 $99 +10% $132 $113 +17% EPS $0.35 $0.31 +13% $0.42 $0.35 +20% ￮ Regional Bank fees up 12% LQ with solid growth in nearly all products and services Avg Loans ($B) $28.7 $27.3 +5% $28.7 $27.3 +5% Avg Deposits ($B) $32.0 $32.5 -2% $32.0 $32.5 -2% ￮ NII up LQ on increased commercial loan growth and higher accretion 2Q19 NIAC2 & EPS Reconciliation • Overall expenses relatively flat, adjusted Amount Amount Per Share Pre-tax After-tax EPS Impact expenses down $6mm LQ $ in millions except per share data 2Q19 Adjusted1 $176 $132 $0.42 ￮ Regional Bank efficiency ratio at 51% Notable Items: ￮ LQ increase in Fixed Income variable Restructuring ($19) ($15) ($0.05) Rebranding ($9) ($7) ($0.02) compensation of ~$5mm Acquisition Related Items ($9) ($7) ($0.02) • Loan loss provision at $13mm; net charge- Litigation Expense Reversal $8 $7 +$0.02 offs stable at $5mm 2Q19 Reported $148 $109 $0.35 LQ – Linked Quarter. YOY – Year Over Year. Numbers may not add to total due to rounding. 1Adjusted Expense, Pre-Tax Income, NIAC, and EPS are Non-GAAP numbers and are reconciled in the appendix. Adjusted numbers exclude notable items as outlined in the appendix. EPS and Adjusted EPS calculated using 6 315.8mm shares. 2Net Income Available to Common (NIAC) includes the impact from $3mm of noncontrolling interest and $1.6mm of preferred stock dividends.

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Successful Execution of Strategic Priorities Driving EPS Growth • Successful execution of strategic priorities driving Reported EPS Growth Linked-Quarter earnings growth: +$0.07 ￮ Balance sheet growth in key markets and specialty areas $0.35 -$0.03 ￮ Higher fees in Regional Bank & Fixed Income $0.31 ￮ Optimizing expenses to support strategic $0.25 investments 1Q19 Earnings Increase in 2Q19 Reported Drivers Notable Reported ￮ Capital deployment with share buybacks EPS Items EPS Adjusted EPS1 Growth Linked-Quarter Earnings Drivers +$0.02 +$0.05 $0.42 -$0.01 -$0.02 +$0.03 $0.35 $0.30 1Q19 Net Fee Adjusted Provision Tax Rate² 2Q19 Adjusted Interest Income Non-Interest Adjusted EPS¹ Income Expense² EPS¹ 1Adjusted EPS is a Non-GAAP number and is reconciled in the appendix. Adjusted numbers exclude notable items as outlined in the appendix. 2The change in Adjusted Non-Interest Expense per Share is a Non-GAAP metric that is reconciled in the appendix. Please refer to the appendix for the calculation of the change in Tax Rate. 7

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Total Loan Growth Accelerated in 2Q19 Specialty Areas and Key Markets Drive Growth • Momentum driven by capturing growth opportunities in key markets after Capital Bank conversion • Total average loan growth of 5% from 2Q18 to 2Q19 ￮ Specialty areas loan growth of 13% YOY ￮ Key markets loan growth of 5% YOY ￮ Includes ~$400mm decrease in non-strategic portfolio Total Average Loans Consolidated Loans - Left Axis Non-strategic Loans - Right Axis $29.0B $2.5B $28.7B ) N . o g v $28.5B $2.0B n a - ( s t s r a n t a $1.4B e o $28.0B $1.3B $1.5B g L $1.2B i $1.1B c d $1.0B L e t o a $27.5B $27.3B $27.3B $27.3B $1.0B a d n i l $27.2B s o ( s a n $27.0B $0.5B v o g . C ) $26.5B $0.0B 2Q18 3Q18 4Q18 1Q19 2Q19 YOY – Year Over Year. Specialty areas include Commercial Real Estate, Asset-based Lending, Loans to Mortgage Companies, Corporate, Franchise Finance, Healthcare, Correspondent, and Energy. Key Markets includes Mid-Atlantic, Middle Tennessee, South Florida, and Texas 8

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Loan Growth Reflects Strategic Focus Broad-Based Loan & Deposit Growth with Strength in Specialty Areas • Strategic priority on enhancing full banking relationships with specialty customers • Specialty businesses delivered 14% average loan growth with all areas up LQ ￮ Loans to mortgage companies grew 69% LQ ￮ Specialty areas excluding loans to mortgage companies (LMC) up 3% LQ • Key markets growth from Middle TN and Texas Diversified Specialty Loan Portfolio Focus On Strategic Priorities Leads to LQ Loan Growth 2Q19 LQ Avg. Bal. Growth % Commercial Real Estate $3.0B 1% Loans to Mortgage Companies $3.0B 69% Asset-based Lending $2.1B 1% Corporate $1.0B 0% Healthcare $0.9B 4% Franchise Finance $0.8B 6% Energy $0.4B 27% Correspondent $0.4B 12% Total Specialty $11.4B 14% LQ – Linked Quarter. Numbers may not add to total due to rounding. Specialty areas include Commercial Real Estate, Asset-based Lending, Loans to Mortgage Companies, Corporate, Franchise Finance, Healthcare, Correspondent, and Energy. Key Markets includes Mid-Atlantic, Middle Tennessee, South Florida, and Texas 9

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Continued Deposit Momentum in 2Q19 Targeted Deposit Growth in Key Markets and Specialty Areas Achieved • Strategic focus on TN and key markets resulted Positive Shift in Deposit Funding Mix in solid deposit growth $32.5B $32.0B ￮ Emphasis in key markets produced LQ $30.7B $4.7B $3.8B Market- -19% $4.5B average growth of 3% in South Florida, 2% in indexed LQ $6.6B Middle TN and 1% in Mid-Atlantic $5.6B $6.6B Commercial • Increased emphasis on gathering specialty interest $12.6B $13.4B $13.6B +1% deposits produced 3% LQ growth Consumer LQ interest ￮ Loans to mortgage companies’ deposits $8.0B $7.8B $7.9B increased ~$70mm Non-interest 2Q18 1Q19 2Q19 Regional Banking LQ Deposit Growth Key Market LQ Deposit Growth Highlights Specialty 3% South FL 3% Key Markets 2% Middle TN 2% TN¹ Mid-Atl. 1% LQ – Linked Quarter. Specialty areas include Commercial Real Estate, Asset-based Lending, Loans to Mortgage Companies, Corporate, Franchise Finance, Healthcare, Correspondent, and Energy. Key Markets includes Mid-Atlantic, Middle Tennessee, South Florida, and Texas. 1TN deposit growth represents less than 1%. 10

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Balance Sheet Management Enhances NIM & NII • Continued success in customer deposit NII and NIM Linked-Quarter Change Drivers growth to reduce reliance on wholesale ($ in millions) NII NIM funding 1Q19 - Reported $294.5 3.31% ￮ Total deposit rate paid declined 4bps LQ Less: 1Q19 CBF Loan Accretion -$9.5 -11bps 1 ￮ Market-indexed average deposits declined 1Q19 - Core $285.0 3.20% 19% LQ Lower Interest Bearing Cash $ - +10bps Deposit Mix Shift +$0.8 +1bp • Countercyclical businesses of fixed income and loans to mortgage companies provide Days +$2.4 - offsets in a declining rate environment Cash Basis +$0.2 - Loan Fees -$1.6 -2bps Net Interest Income Sensitivity Impact2 Lower LIBOR -$2.0 -2bps 1% +0.8% +$10mm Loan Growth/Spreads +$8.4 -3bps 0% -0.9% Other Earning Assets -$1.7 -4bps -1% -$11mm (Trading Inventory) -2% Other -$0.1 -1bp -3.0% 1 -3% -$37mm 2Q19 - Core $291.3 3.20% Plus: 2Q19 CBF Loan Accretion +$12.3 +13bps -4% -50bps -25bps +25bps 2Q19 - Reported $303.6 3.34% LQ – Linked Quarter. Numbers may not add to total due to rounding. 1Core excludes the accretion from CBF’s loans, and is a Non-GAAP number reconciled in the table found on this slide. The average earning assets impact from CBF’s loan accretion was $103mm in 2Q19 and $123mm in 1Q19. 2NII sensitivity analysis uses FHN’s balance sheet as of 6.30.19. Bps impact assumes increase (decrease) in Fed Funds rate. During the past few years, the movement of short-term interest rates higher after a prolonged period of very low interest rates has had an overall positive effect on FHN's NII and NIM. Recently however, competitive pressures have caused FHN’s deposit costs to rise faster than the long-term 11 “through the cycle” assumptions made in its simulation model.

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Strong Quarter for Fixed Income Complementary and Countercyclical Business Demonstrated in 2Q19 • Decline in interest rates and rate outlook favorably impacted 2Q19 activity • Fixed income product ADR of $866k up 19% LQ, 85% YOY with growth across multiple trading desks • Other product revenue in Fixed Income up 19% LQ and 32% YOY • EPS contribution1 of $0.06 YTD and $0.04 in 2Q19 • Pre-tax income increased from higher revenues in addition to the benefit of lower fixed expenses Fixed Income Revenue and Expense Trends Key Drivers of Average Daily Revenue $80mm $900k Lower Higher Key Driver $75mm Revenue Revenue $72mm $800k $70mm $700k $65mm Up Direction of rates Down $61mm $60mm $600k Low Market Volatility Moderate $55mm $50mm $500k $50mm $49mm $48mm Flatter Shape of Yield Curve Steeper $56mm $400k $45mm $51mm $47mm $47mm $47mm State of Economy & $40mm $300k Positive Negative 2Q18 3Q18 4Q18 1Q19 2Q19 Outlook Expense Revenue ADR (Right Axis) LQ – Linked Quarter. YOY – Year Over Year. 1EPS contribution was calculated using the Fixed Income Segment’s net income divided by diluted weighted avg. shares for the respective periods. Diluted weighted avg. shares were 317.7mm YTD and 12 315.8mm QTD for 2Q19.

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Improving Efficiency While Investing for Growth Efficiency Actions Support Investment and Customer Experience Transformation • Efficiency actions to position us for challenging rate environment, and provide capacity to reinvest savings strategically ￮ Announced 22 branch closures, improved processes, and streamlined operations ￮ Sustainable structural cost savings in 1H19 provide ongoing expense benefit ￮ Reduced discretionary spending and opportunistic savings added to YTD cost saves ￮ Continued investments in strategic hires in key markets and customer-facing technology • Targeting $50mm+ in cost saves for full year 2019 with ~$20mm of total reinvestment • Actions taken in 1H19 to achieve $36mm of efficiencies with $6mm of reinvestment Continued Decline in Non-Interest Expense ($ in millions) $333 Reported $300 Adjusted¹ $294 $296 $285 $283 $282 $278 $270 $272 $250 2Q18 3Q18 4Q18 1Q19 2Q19 Numbers may not add to total due to rounding. 1Adjusted Expense are Non-GAAP numbers and are reconciled in the appendix. Adjusted numbers exclude notable items as outlined in the appendix. 13

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Asset Quality • In 2Q19, net charge-off (NCO) ratio1 at 7bps Asset Quality Highlights ￮ $4mm in charge-offs driven by one commercial credit in loans to mortgage ($ in millions) 2Q18 3Q18 4Q18 1Q19 2Q19 companies portfolio Charge-offs ($10) ($9) ($18) ($11) ($12) ￮ 30-day delinquencies down 8% LQ Recoveries $8 $8 $6 $6 $7 ￮ NPLs at 69bps, up 4bps LQ, increase Net Charge-offs $2 $2 $12 $5 $5 largely due to one commercial credit in Provision/(Credit) $0 $2 $6 $9 $13 loans to mortgage companies portfolio • CBF credit performance as expected Allowance for Loan Losses • Allowance to loans ratio remains steady at $30B 65bps $28B $27B $28B $28B 67bps 68bps 66bps 66bps 65bps 2Q18 3Q18 4Q18 1Q19 2Q19 Period-end Loans ALLL to Loans Ratio LQ – Linked Quarter. Numbers may not add to total due to rounding. 1Net charge-off % is annualized and as % of average loans. 14

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Balance Sheet Evolution Yields Lower Risk Model • Commercial loan portfolio shifting to higher quality, Positive Commercial Credit Grade Migration with 42% of commercial loans qualifying as ($ are Total Ending Balance) $23B investment grade equivalent 3% PD 1-5 • High quality consumer portfolio with no subprime High Pass and minimal exposure to high risk consumer lending; FICO scores strong at 758 PD 6-9 Medium Pass • Stronger capital resiliency in the severely adverse $9B 2018 DFAST scenario vs peers1 PD 10-12 32% Low Pass ￮ FHN CET1 decline 90bps vs 440bps for peers 42% PD 13-16 Significantly lower stressed loss rates, severely ￮ Non Pass 9% adverse NCOs less than half of DFAST peers 2009 2Q19 CRE to Total Capital: FHN vs Peers2 Total Average Loans Since 2009, exited 267%268% 2009 2Q19 252% national 1st & 2nd Lien 226% originations, One Time 177%182% Close and significantly 165% 15% 14% reduced exposure to 135% 138% 37% 105% 109%110% Res-CRE and Land 87% 21% 37% 63% 11% 2% I F F A V P C C R B U H N . B F B F K P S N K K H C W C C N O S F B B B M T N H I P B C U C C&I CRE Home Equity / HELOC Other Consumer³ F 1Results represent DFA Severely Adverse scenario. All references to peer stress testing data indicates aggregate HoldCo level 2018 supervisory Dodd-Frank Act Stress Testing (“DFAST”) results of 35 participating firms. Source: Federal Reserve. 2CRE is comprised of Non-owner-occupied Nonfarm/Nonresidential property loans, Multifamily loans, Construction & Land Development loans, and Unsecured CRE loans. Data as of 1Q19. Source: S&P Global Market Intelligence. 15 3Other Consumer includes Other Consumer loans, Credit Card, One-time Close, and Permanent Mortgage loans.

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Key Takeaways Delivering on Key Strategic Priorities & Controlling What We Can Control Controlling What We Can Control • Strong loan growth across markets and specialty areas • Solid core customer deposit growth with momentum in key markets • Good expense discipline and taking additional efficiency actions to reinvest in the company • Continued sustainable underwriting discipline and ongoing portfolio management • Effective capital deployment with share buybacks and dividend Uncontrollable Market Factors • Interest Rate Environment - Negative shift in Fed Funds, 1M LIBOR, UST Curves 16

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2019 Outlook: Delivering on Strategic Priorities 2Q19 2019 Outlook Commentary Reported Adjusted 1 1 Outlook improved due to stronger ROTCE 15.1% 18.2% 17% +/- performance across franchise 1 Increased fee income and cost reductions ROA 1.11% 1.32% 1.20% +/- driving improved profitability Loan & Deposit Growth at 3-6% NIM 3.34% 3.34% 3.30% +/- Assumes two FF rate decreases in 2019, 1M LIBOR declines from current levels, and gradual decreases in loan accretion Efficiency Efficiency Ratio expected to benefit from 65% 59%1 61% +/- restructuring actions and ongoing expense Ratio discipline partially offset by reinvestment NCOs 7bps 7bps 10bps +/- Credit outlook stable Deploying capital to support loan growth CET1 9.3% 9.3% 9.5 - 10% Capital levels expected to remain stable with payout ratio within 35-70% range 1ROTCE, Adjusted ROTCE, Adjusted ROA, and Adjusted Efficiency Ratio are Non-GAAP numbers, which are reconciled in the Appendix. 17

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Dominate Tennessee Profitably Grow Key Markets & Specialty Areas Delivering on Strategic Priorities Optimize The Expense Base Transform the Customer Experience Strong Risk Profile & Effective Capital Deployment 18

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APPENDIX 19

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2Q19 Credit Quality Summary by Portfolio Regional Banking Corporate5 Non-Strategic FHNC Commercial HE & Permanent Commercial HE & Permanent CRE Other1 Subtotal Other2 Total (C&I & Other) HELOC Mortgage (C&I & Other) HELOC Mortgage ($ in millions) Period End Loans $18,710 $3,787 $5,773 $441 $28,711 $35 $418 $337 $155 $57 $29,713 30+ Delinquency % 0.05% 0.07% 0.50% 0.72% 0.15% 4.03% 0.00% 2.60% 1.67% 4.27% 0.20% Dollars $9 $3 $29 $3 $44 $1 $0 $9 $3 $2 $59 NPL3 % 0.56% 0.07% 0.66% 0.06% 0.51% 4.79% 0.66% 11.40% 10.36% 0.72% 0.69% Dollars $104 $3 $38 $0 $145 $2 $3 $38 $16 $0 $205 Net Charge-offs4 % 0.14% 0.02% NM 1.82% 0.11% NM 0.02% NM NM 4.41% 0.07% Dollars $6 $0 ($0) $2 $8 0 $0 ($3) ($1) $1 $5 Allowance $115 $29 $15 $12 $171 0 $5 $8 $9 $0 $193 Allowance / Loans % 0.61% 0.77% 0.25% 2.76% 0.60% NM 1.20% 2.44% 5.57% 0.09% 0.65% Allowance / Net Charge-offs 4.73x 34.79x NM 1.52x 5.43x NM 56.57x NM NM 0.02x 9.31x Numbers may not add to total due to rounding. Data as of 2Q19. NM - Not meaningful. 1Includes Credit card, Permanent Mortgage, and Other. 2Includes Credit card, OTC, and Other Consumer. 3Non-performing loan excludes held-for-sale loans. 4Net charge-offs are annualized. 20 5Exercised clean-up calls on jumbo securitizations in 1Q13, 3Q12, 2Q11, and 4Q10, which are now on the balance sheet in the Corporate segment.

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Select C&I and CRE Portfolio Metrics Regional Banking Average Commercial Loans C&I: Loans to Mortgage Companies 2% 2% Correspondent • 50% conventional conforming Specialty Areas Energy • 40% government insured 4% • 10% jumbo/other $3.8 4% Franchise Finance 5% • 70% purchase/30% refi in 2Q19 Healthcare $3.0 40% 10% Corporate $2.4 $2.1 $2.3 $1.9 $2.1 $2.0 2Q19 Asset-Based Lending $1.9 $1.7 Loans to Mortgage Co. 14% Commercial Real Estate 2Q18 3Q18 4Q18 1Q19 2Q19 4% Business Banking 14% Commercial Period-end Balance ($B) Average Balance ($B) CRE: Collateral Type CRE: Geographic Distribution 1% Multi-Family NC Retail 12% 15% 25% TN Office 30% 12% 6% FL Industrial SC 2Q19 7% 2Q19 Other TX 13% 8% Hospitality 19% GA Land 20% 18% 14% Other Numbers may not add to total due to rounding. 21

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Consumer Portfolio & Non-Strategic Overview HELOC Draw vs Repayment Balances Home Equity Portfolio In Draw In Repayment 66% $1.0B $0.4B 2Q19 5% 6% 7% 8% 7% 0-12 13-24 25-36 37-48 49-60 >60 Months Left in Draw Period Non-Strategic Consumer Real Estate Mortgage Repurchase Reserve $489mm $442mm ($ in millions) 2Q18 3Q18 4Q18 1Q19 2Q19 $405mm $372mm $337mm Beginning Balance $33 $32 $32 $32 $31 38% 37% 1 36% Net Realized Losses ($1) $0 ($0) $0 ($13) 33% 32% Provision Credit ($0) ($1) ($0) ($0) ($1) 2Q18 3Q18 4Q18 1Q19 2Q19 Ending Balance $32 $32 $32 $31 $18 Period-end Balance Constant Pre-Payment Rate Data as of 2Q19 unless noted otherwise. Numbers may not add to total due to rounding. 12Q19 includes a $12.6 million indemnification settlement payment that reduces the repurchase and foreclosure reserve. 22

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Notable Items – 2018 & 2019 Pre-Tax Pre-Tax 2018 Amount 2019 Amount Acquisition Expense ($31.4mm) Restructuring ($12.2mm) 1Q Gain on property sale $3.3mm Acquisition Expense ($5.7mm) Restructuring ($18.7mm) Acquisition Expense ($43.2mm) Rebranding ($9.1mm) 2Q Acquisition Expense ($8.6mm) Other Expense (Visa Shares) ($4.1mm) Litigation Expense Reversal $8.3mm Acquisition Expense ($11.4mm) 3Q Visa B Share Monetization $212.9mm Acquisition Expense ($11.6mm) 4Q Acquisition: Fee-income Adjustment ($1.8mm) Return of excess fees from Capital Bank ($8.7mm) Debit Cards 23

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Expense Schedules Capital Bank Acquisition, Restructuring, & Rebranding Capital Bank Merger and Integration Expenses Restructuring Expenses ($ in millions) 2Q19 1Q19 2Q18 ($ in millions) 2Q19 1Q19 Employee comp., incentives and benefits (a) $0.4 $0.5 $2.5 Employee comp., incentives and benefits $2.6 $6.5 Occupancy (b) $1.5 $0.1 $2.2 Legal & Professional fees $4.2 $4.3 Miscellaneous expense (c) $0.1 $1.1 $3.1 Occupancy $0.1 $0.8 Professional fees (d) $4.5 $1.9 $9.0 All other expense (a) $11.8 $0.5 Contract employment and outsourcing (e) $- $ - $1.7 Total Restructuring Expense $18.7 $12.2 All other expense (f) $1.1 $1.1 $23.2 (a) Primarily relates to branch impairments. Total Capital Bank Merger and Integration Expense $7.5 $4.7 $41.8 Rebranding Expenses (a) Primarily comprised of fees for severance and retention. ($ in millions) 2Q19 (b) Primarily relates to fees associated with lease exit accruals. Professional fees $0.9 (c) Consists of fees for operations services, communications and courier, equipment rentals, depreciation, and maintenance, supplies, travel and entertainment, computer Advertising and public relations $0.4 software, and advertising and public relations. Supplies $0.3 (d) Primarily comprised of fees for legal, accounting, and merger consultants (e) Primarily relates to fees for temporary assistance for merger and integration All other expense (a) $7.4 activities. Total Restructuring Expense $9.1 (f) Primarily relates to contract termination charges, costs of shareholder matters and asset impairments related to the integration, as well as other miscellaneous expenses. (a) Primarily relates to costs associated with signage and other fixed asset impairments. *Integration activities were substantially completed in second quarter 2018. This table shows acquisition expense related to the CBF transaction only and does not include expense from other acquisitions. Numbers may not add to total due to rounding. 24

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Reconciliation to GAAP Financials Slides in this presentation use non-GAAP information of adjusted noninterest expense, adjusted pre-tax income, adjusted net income available to common, and adjusted earnings per share. That information is not presented according to generally accepted accounting principles (GAAP) and is reconciled to GAAP information below. LQ ($ and shares in millions, except per share data) 2Q19 1Q19 % Change 4Q18 3Q18 2Q18 Adjusted Noninterest Expense Noninterest Expense (GAAP) $300 $296 1% $282 $294 $333 Plus: Notable Items (GAAP) -$28 -$18 58% -$12 -$11 -$47 Adjusted Noninterest Expense (Non-GAAP) $272 $278 -2% $270 $283 $285 Adjusted Pre-Tax Income Pre-Tax Income (GAAP) $148 $130 14% Plus: Notable Items (GAAP) $28 $18 58% Adjusted Pre-Tax Income (Non-GAAP) $176 $148 19% Adjusted Net Income Net Income (GAAP) $114 $103 10% Plus: Tax-affected Notable Items (GAAP)1 $22 $14 62% Adjusted Net Income (Non-GAAP) $136 $117 16% Adjusted Net Income Available to Common (NIAC) & Earnings Per Share (EPS) Net Income Available to Common (GAAP) $109 $99 10% Plus: Tax-affected Notable Items (GAAP)1 $22 $14 62% Adjusted Net Income Available to Common (Non-GAAP) (a) $132 $113 17% Average Common Diluted Shares (GAAP) (b) 316 320 -1% Earnings Per Share (GAAP) $0.35 $0.31 13% Adjusted Earnings Per Share (Non-GAAP) (a/b) $0.42 $0.35 20% Numbers may not add to total due to rounding. LQ – Linked Quarter. 1Tax-affected notable items assume an effective tax rate of ~21% in 2Q19 and ~23% in 1Q19. 25

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Reconciliation to GAAP Financials Slides in this presentation use non-GAAP information of adjusted efficiency ratio, return on tangible common equity, adjusted return on tangible common equity, and adjusted return on average assets. That information is not presented according to generally accepted accounting principles (GAAP) and is reconciled to GAAP information below. ($ in millions) 2Q19 1Q19 Variance Adjusted Efficiency Ratio Noninterest Expense (GAAP) (a) $300 $296 Revenue Excluding Securities Gains (GAAP) (b) $462 $436 Efficiency Ratio (GAAP) (a/b) 65.1% 68.0% -290bps Adjusted Noninterest Expense1 (Non-GAAP) (c) $272 $278 Revenue Excluding Securities Gains (Non-GAAP) (b) $462 $436 Adjusted Efficiency Ratio (Non-GAAP) (c/b) 59.0% 63.9% -489bps Return on Tangible Common Equity (ROTCE) Average Total Equity (GAAP) $4,869 $4,809 Less: Average Noncontrolling Interest (GAAP) -$295 -$295 Less: Average Preferred Stock (GAAP) -$96 -$96 Average Common Equity (GAAP) (d) $4,478 $4,418 Less: Average Intangible Assets (GAAP) -$1,579 -$1,585 Average Tangible Common Equity (Non-GAAP) (e) $2,900 $2,833 Annualized Net Income Available to Common (GAAP) (f) $439 $402 Return on Average Common Equity (ROCE) (GAAP) (f/d) 9.8% 9.1% 70bps Return on Average Tangible Common Equity (ROTCE) (Non-GAAP) (f/e) 15.1% 14.2% 95bps Adjusted Return on Tangible Common Equity (ROTCE) Annualized Adjusted Net Income Available to Common1 (Non-GAAP) (g) $528 $457 Average Tangible Common Equity (Non-GAAP) (e) $2,900 $2,833 Adjusted Return on Average Tangible Common Equity (ROTCE) (Non-GAAP) (g/e) 18.2% 16.1% 206bps Adjusted Return on Average Assets (ROA) Annualized Net Income (GAAP) (h) $456 $419 Average Total Assets (GAAP) (i) $41,243 $40,883 Return on Average Assets (GAAP) (h/i) 1.11% 1.03% N/A Annualized Adjusted Net Income1 (Non-GAAP) (j) $545 $475 Average Total Assets (GAAP) (i) $41,243 $40,883 Adjusted Return on Average Assets (Non-GAAP) (j/i) 1.32% 1.16% N/A Numbers may not add to total due to rounding. N/A – Not Applicable. 1Adjusted Noninterest Expense, Adjusted Net Income Available to Common, and Adjusted Net Income are Non-GAAP numbers that are reconciled on the previous slide. 26

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Reconciliation to GAAP Financials Slides in this presentation use non-GAAP information of adjusted noninterest expense per common share and adjusted earnings per share. That information is not presented according to generally accepted accounting principles (GAAP) and is reconciled to GAAP information below. (2) (1) Average Common (1)/(2) LQ Diluted Shares LQ ($ and shares in millions, except per share data) 2Q19 1Q19 $ Change (GAAP) 1Q19 EPS Impact Adjusted Noninterest Expense Per Share Noninterest Expense (Non-GAAP) -$300 -$296 -$4 320 -$0.01 Adjusted Noninterest Expense (Non-GAAP)1 -$272 -$278 $6 320 $0.02 Adjusted Earnings Per Share (Non-GAAP) 1 $0.42 $0.35 $0.07 N/A $0.07 Less: Net Interest Income (GAAP) $304 $295 $9 320 $0.03 Less: Fee Income (GAAP) $158 $141 $17 320 $0.05 Less: Adjusted Noninterest Expense (Non-GAAP)1 -$272 -$278 $6 320 $0.02 Less: Provision (GAAP) -$13 -$9 -$4 320 -$0.01 Tax Rate (Remainder) N/A N/A N/A N/A -$0.02 Numbers may not add to total due to rounding. N/A – Not Applicable. 1Adjusted Noninterest Expense and Adjusted EPS are Non-GAAP numbers that are reconciled on the previous slide. 27

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