EX-99.1


TABLE OF CONTENTS


	Page

First Horizon National Corporation Segment Structure		3

Performance Highlights		4

Charges for Restructuring, Repositioning, & Efficiency Initiatives		6

Consolidated Results
Income Statement
Summary Income Statement		7
Income Statement		8
Other Income and Other Expense		9
Balance Sheet
Period End Balance Sheet		10
Average and Period End Loans		11
Average Balance Sheet		12
Average Balance Sheet: Income & Expense		13
Average Balance Sheet: Yields & Rates		14
Mortgage Servicing Rights		15

Business Segment Detail
Segment Highlights		16
Regional Banking		17
Capital Markets		18
National Specialty Lending		19
Mortgage Banking		20
Mortgage Banking: Servicing		21
Corporate		22

Capital Highlights		23

Asset Quality
Asset Quality: Consolidated		24
Analysis of FAS 114 Loans, ORE, & NPL Rollforward		26
Asset Quality: Regional Banking		27
Asset Quality: National Specialty Lending		28
Asset Quality: Mortgage Banking & Capital Markets		29
Asset Quality Highlights: Key Portfolios — Commercial		30
Asset Quality Highlights: Key Portfolios — Consumer		31
Asset Quality Process		32

Glossary of Terms		33

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 FHN’s most recent press 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 factors or to publicly announce the result of any revisions to any of the forward-looking statements included herein or therein to reflect future events or developments.


FIRST HORIZON NATIONAL CORPORATION SEGMENT STRUCTURE

Regional Banking

	- Traditional banking services for consumers and business
	- Activities include lending and deposit taking, investments, insurance, financial planning, trust services, asset management, cash management, and health savings accounts
	- Primarily southeastern US footprint, with approximately 200 financial centers in Tennessee and nearby markets
	- First Tennessee banking franchise and middle market lending are key businesses
	- First Horizon Banks included for periods prior to divestiture

Capital Markets

	- Fixed income sales, trading, and strategies for institutional clients in U.S. and abroad
	- Other capital markets products include:

- Equity research, portfolio advisory, derivatives, and loan trading

- Correspondent banking provides credit, depository, and other banking related services to other financial institutions

National Specialty Lending

	- Wind-down portfolio that includes lending activities such as consumer lending and construction lending outside Regional Banking footprint
	- Construction lending includes national home builder, one-time close, and commercial real estate portfolios

- In January 2008, FHN announced the discontinuation of national home builder and commercial real estate lending through its First Horizon Construction Lending offices

- Consumer lending consists mainly of national retail-originated home equity loans and lines

Mortgage Banking

	- Primarily consists of first lien mortgage originations and servicing
	- In a transaction that closed on August 31, 2008, First Horizon National Corp sold its mortgage servicing platform and origination offices outside Tennessee to MetLife Bank, N.A.

Corporate

	- Includes executive management, enterprise-wide risk management, corporate finance, corporate communications, and legal functions
	- Also includes funding function for the corporation and any impact from balance sheet positioning


PERFORMANCE HIGHLIGHTS

Summary of First Quarter 2009 Significant Items (in millions)


Segment	Item	Income Statement	Pre-Tax			Comments
National Specialty Lending	Repurchase Reserves	Noninterest income: Other	$	(10.0	)	Increase in repurchase reserves due to higher repurchase activity.

Mortgage Banking	Reinsurance Reserve	Noninterest expense: Other	$	(14.3	)	Increase in reserves for PMI reinsurance contracts due to increasing mortgage default expectations.

	Foreclosure Reserve	Noninterest expense: Other	$	(12.3	)	Increase in repurchase reserves due to higher repurchase activity.

	Foreclosure Reserve	Noninterest income: Mortgage Banking	$	3.4		Adjustment of reserves due to expiration of contingency periods on prior loan sales.

Various	Life Insurance Reserve	Noninterest expense: Employee compensation, incentives and benefits	$	(10.7	)	Adjustment of liability for employee life insurance obligation. Allocated to all segments.

Corporate	Restructuring, Repositioning & Efficiency Initiatives	Noninterest expense: Various	$	(3.6	)	Expenses from severance and office closures. Detailed further on page 6.

	Restructuring, Repositioning & Efficiency Initiatives	Noninterest income: Mortgage Banking	$	(1.1	)	Servicing sale costs. Detailed further on page 6.

(First Quarter 2009 vs. Fourth Quarter 2008)

Asset Quality

-	Provision increased to $300.0 million in the first quarter compared to $280.0 million in fourth quarter 2008

	-	Portfolio deterioration in first quarter 2009 due to declining economic conditions

	-	Continuing commercial portfolio deterioration

	-	C&I and Income CRE experiencing negative grade migration

	-	Residential CRE seeing downward trend in provisioning as credits are further along in credit cycle

Experiencing increased delinquencies

Consumer portfolios experiencing continued stress

Consumer real estate seeing deterioration within Home Equity portfolio

Delinquency trends improving

OTC provisioning reflects recognition of higher inherent loss content

Permanent mortgage portfolio experiencing increased delinquencies

-	Net charge-offs were 397 annualized basis points of average loans driven by residential CRE, C&I, and home equity and OTC portfolios

	-	Net charge-offs of $208.3 million in first quarter compared to $191.2 million in prior quarter

	-	Charging off almost all impaired commercial loan balances down to most likely estimate of collateral value net of costs to sell

-	NPAs increased to 598 basis points from 538 basis points reflecting portfolio deterioration from current economic conditions

-	Total NPAs increased to $1.3 billion from $1.2 billion primarily from deterioration in the commercial portfolio

-	Allowance as a percentage of loans ratio increased to 457 basis points from 399 basis points in prior quarter

Capital

-	Continued quarterly dividend payable in common stock

-	Current ratios also continue to benefit from balance sheet contraction (estimated based on period end balances)

7.07% for tangible common equity to tangible assets

20 basis point negative impact from $868 million excess Fed balances

15.0% for Tier I

20.1% for Total Capital

-	CPP Preferred dividend of $15.0 million in first quarter

	-	$11.0 million effect of cash dividend

	-	$4.0 million of amortization to accrete initial discounted book value up to face value


PERFORMANCE HIGHLIGHTS (continued)

(First Quarter 2009 vs. Fourth Quarter 2008)

Regional Banking

-	Net interest margin decreased to 3.88% compared to 4.21% in fourth quarter

Reflects declining deposit spreads from the low interest rate environment.

-	Noninterest income declined to $76.3 million from $82.7 million

Seasonal decrease in fee income, primarily from deposit accounts

-	Provision expense decreased to $97.8 million from $105.8 million

Reflects continued deterioration in commercial loans

-	Noninterest expense increased to $173.7 million compared to $168.1 million in prior quarter

Primarily from higher personnel costs due to life insurance reserve adjustment

Capital Markets

-	Fixed income revenues were $197.0 million in first quarter compared to $156.5 million in prior quarter

Reflects the strength of an extensive distribution network combined with favorable market conditions

-	Other product revenues were $19.7 million in first quarter compared to $20.8 million in fourth quarter

-	Provision expense increased to $14.0 million from $8.1 million

Current stress in financial system continuing to impact correspondent banking and trust preferred loans

-	Increase in noninterest expense resulted from higher production levels

National Specialty Lending

-	Sequential decline in net interest income as loan portfolios continue to wind down

-	Net interest margin decreased to 1.81% compared to 1.84% in fourth quarter

Primarily results from an increase in nonaccrual loans

-	Provision for loan losses continues to reflect deterioration within national construction and consumer lending portfolios

-	Noninterest income decreased sequentially

Charge of $10.0 million recognized in first quarter for repurchase reserves

	-	Increase in expected repurchase activity

	-	$2.3 million charge recognized in fourth quarter

$2.7 million reduction in value of MSR in first quarter primarily due to interest rate changes

$5.1 million reduction in fourth quarter

-	Noninterest expense increased due to higher losses on foreclosed properties and higher compensation costs

Mortgage Banking

-	Increased origination income

Negative warehouse valuation adjustments recognized in fourth quarter were not required in first quarter

Warehouse valuation adjustments in first quarter were not significant

	-	Tennessee origination income also increased significantly in first quarter due to refinancing activity

	-	$3.4 million of reductions in reserves in first quarter due to expiration of contingencies associated with prior loan sales

-	Servicing hedging results positively impacted earnings by $84.7 million vs. $64.6 million in fourth quarter

Represents positive carry on swaps and effects of widening spreads between mortgage and swap rates

-	Servicing fees declined consistent with the decline in average MSR

-	Servicing runoff increased to $18.6 million for first quarter from $9.9 million in prior quarter due to increased refinancing activity

-	Other income increased over prior quarter

$6.5 million charge recognized in fourth quarter related to servicing fee guarantees on prior servicing sales

-	Net interest income decline consistent with the decrease in average interest-bearing servicing assets

-	Minimal provision in first quarter for permanent mortgage portfolio

$22.0 million of provision recognized in prior quarter

-	Noninterest expense increased to $47.6 million in first quarter compared to $39.6 million in prior quarter

First quarter includes $14.3 million of expense for PMI reinsurance liability due to increased mortgage default expectations

$16.5 million of expense for PMI reinsurance liability recognized in fourth quarter

Provisioning for foreclosure losses of $12.3 million in first quarter

Primarily driven by increased repurchase activity

Effect on foreclosure reserve partially offset by $3.4 million reserve adjustments recognized through origination income

$1.8 million of expense in fourth quarter

Fees associated with Tennessee mortgage operations increased consistent with associated origination volumes

Taxes

-	Approximate $8 million positive quarterly effect from permanent tax credits

Corporate Segment

-	Net charges of $4.7 million recognized for restructuring, repositioning and efficiency initiatives (detail on next page)

	-	Primarily for severance, servicing sale costs and office closures

	-	Prior quarter included $10.3 million of net charges for these initiatives


CONSOLIDATED SUMMARY RESULTS Quarterly, Unaudited


																1Q09 Change vs.
(Thousands)	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08

Income Statement Highlights
Net interest income	$	196,587		$	204,948		$	223,147		$	238,895		$	228,092			(4	)%		(14	)%
Noninterest income		407,871			336,672			305,383			400,018			383,130			21	%		6	%
Securities gains/(losses), net		(2	)		1,346			(210	)		(972	)		65,946		NM			NM

Total revenue		604,456			542,966			528,320			637,941			677,168			11	%		(11	)%

Noninterest expense		417,328			345,449			399,399			462,999			434,216			21	%		(4	)%
Provision for loan losses		300,000			280,000			340,000			220,000			240,000			7	%		25	%

Income/(loss) before income taxes		(112,872	)		(82,483	)		(211,079	)		(45,058	)		2,952			(37	)%	NM
Benefit for income taxes		(47,777	)		(30,988	)		(88,859	)		(28,821	)		(8,146	)		(54	)%	NM

Income/(loss) from continuing operations		(65,095	)		(51,495	)		(122,220	)		(16,237	)		11,098			(26	)%	NM
Income from discontinued operations, net of tax		—			—			—			—			883		NM			NM

Net income/(loss)		(65,095	)		(51,495	)		(122,220	)		(16,237	)		11,981			(26	)%	NM

Net income/(loss) attributable to noncontrolling interest (g)		2,750			4,236			2,875			2,844			4,061			(35	)%		(32	)%

Net income/(loss) attributable to controlling interest		(67,845	)		(55,731	)		(125,095	)		(19,081	)		7,920			(22	)%	NM

Preferred stock dividends (h)		14,956			7,413			—			—			—			102	%	NM
Income/(loss) available to common shareholders	$	(82,801	)	$	(63,144	)	$	(125,095	)	$	(19,081	)	$	7,920			(31	)%	NM

Common Stock Data
Diluted EPS from continuing operations (a)	$	(0.39	)	$	(0.30	)	$	(0.59	)	$	(0.10	)	$	0.05			(30	)%	NM
Diluted EPS (a)		(0.39	)		(0.30	)		(0.59	)		(0.10	)		0.06			(30	)%	NM
Diluted shares (a)		210,413			210,346			210,345			184,992			136,496			*			54	%
Period-end shares outstanding (a)		211,595			210,758			210,773			210,930			136,618			*			55	%
Dividends declared per share (b)	NM		(c)	NM		(d)	NM		(e)	$	0.19	(f)	$	0.19	(f)	NM			NM

Balance Sheet Highlights (Period End)
Total loans, net of unearned income	$	20,572,477		$	21,278,190		$	21,601,898		$	22,225,232		$	21,932,020			(3	)%		(6	)%
Total loans held for sale-divestiture		—			—			—			—			207,672		NM			NM
Total deposits		14,910,055			14,241,814			13,778,235			15,093,947			16,188,542			5	%		(8	)%
Total deposits-divestiture		—			—			—			296,632			118,720		NM			NM
Total assets		31,208,024			31,021,980			32,804,376			35,549,961			37,267,945			1	%		(16	)%
Total assets-divestiture		—			—			—			395,628			216,431		NM			NM
Total liabilities		27,700,348			27,447,348			29,931,458			32,557,238			34,860,441			1	%		(21	)%
Total liabilities-divestiture		—			—			—			298,098			120,590		NM			NM
Total shareholders’ equity		3,507,676			3,574,632			2,879,724			2,992,723			2,407,504			(2	)%		46	%

Key Ratios & Other
Return on average assets		(0.87	)%		(0.66	)%		(1.46	)%		(0.18	)%		0.13	%
Return on average common equity		(13.44	)%		(9.30	)%		(18.30	)%		(3.02	)%		1.47	%
Net interest margin		2.89	%		2.96	%		3.01	%		3.01	%		2.81	%
Efficiency ratio		69.0	%		63.6	%		75.6	%		72.6	%		64.1	%
Book value per common share	$	11.46		$	11.85		$	12.23		$	12.79		$	15.46
Tangible book value per common share	$	10.35		$	10.72		$	11.09		$	11.65		$	13.67
FTE employees		6,033			6,095			6,195			9,386			9,711			(1	)%		(38	)%


NM — Not meaningful

*		Amount is less than one percent.

Certain previously reported amounts have been reclassified to agree with current presentation.
(a)		Shares restated for stock dividends paid through April 1, 2009.
(b)		First and second quarters 2008 dividend declared paid in cash.
(c)		Stock dividend rate of 2.6673% per share.
(d)		Stock dividend rate of 1.837% per share.
(e)		Stock dividend rate of 3.0615% per share.
(f)		Cash dividends per share restated for stock dividends paid through April 1, 2008.
(g)		Represents preferred dividends previously reported in NIOE. Currently reported as noncontrolling interest due to adoption of SFAS 160.
(h)		1Q 09 includes $4.0 million amortization of initial discounted book value of CPP preferred.


CONSOLIDATED INCOME STATEMENT Quarterly, Unaudited


																1Q09 Change vs.
(Thousands)	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08

Interest income	$	270,093		$	331,554		$	383,243		$	415,485		$	476,443			(19	)%		(43	)%
Less interest expense		73,506			126,606			160,096			176,590			248,351			(42	)%		(70	)%

Net interest income		196,587			204,948			223,147			238,895			228,092			(4	)%		(14	)%
Provision for loan losses		300,000			280,000			340,000			220,000			240,000			7	%		25	%

Net interest income/(loss) after provision for loan losses		(103,413	)		(75,052	)		(116,853	)		18,895			(11,908	)		(38	)%		(768	)%

Noninterest income:
Capital markets		214,224			174,671			95,954			122,338			131,457			23	%		63	%
Deposit transactions and cash management		39,032			43,882			45,802			46,797			42,553			(11	)%		(8	)%
Mortgage banking (a) (b)		115,749			80,087			106,817			172,418			158,712			45	%		(27	)%
Trust services and investment management		6,820			7,675			8,154			8,883			9,109			(11	)%		(25	)%
Insurance commissions		6,918			6,806			7,332			6,822			8,144			2	%		(15	)%
Revenue from loan sales and securitizations		969			(782	)		3,238			(6,984	)		(4,097	)		224	%		124	%
Securities gains/(losses), net		(2	)		1,346			(210	)		(972	)		65,946		NM			NM
Gains/(losses) on divestitures		—			(106	)		(17,489	)		(429	)		(995	)	NM			NM
Other (c)		24,159			24,439			55,575			50,173			38,247			(1	)%		(37	)%

Total noninterest income		407,869			338,018			305,173			399,046			449,076			21	%		(9	)%

Adjusted gross income after provision for loan losses		304,456			262,966			188,320			417,941			437,168			16	%		(30	)%

Noninterest expense:
Employee compensation, incentives and benefits (b) (d)		248,511			180,871			215,498			277,078			287,470			37	%		(14	)%
Occupancy		16,050			19,149			27,210			30,018			28,591			(16	)%		(44	)%
Operations services		16,539			19,345			20,041			19,124			18,964			(15	)%		(13	)%
Equipment rentals, depreciation and maintenance		8,698			11,454			12,336			18,268			15,011			(24	)%		(42	)%
Legal and professional fees (b)		14,108			17,711			16,955			14,030			15,022			(20	)%		(6	)%
Communications and courier		7,204			7,754			9,628			11,477			11,004			(7	)%		(35	)%
Amortization of intangible assets		1,636			1,805			1,802			2,182			2,440			(9	)%	NM
Other (b) (e) (f)		104,582			87,360			95,929			90,822			55,714			20	%		88	%

Total noninterest expense		417,328			345,449			399,399			462,999			434,216			21	%		*

Income/(loss) before income taxes		(112,872	)		(82,483	)		(211,079	)		(45,058	)		2,952			(37	)%	NM
Benefit for income taxes		(47,777	)		(30,988	)		(88,859	)		(28,821	)		(8,146	)		(54	)%	NM

Income/(loss) from continuing operations	$	(65,095	)	$	(51,495	)	$	(122,220	)	$	(16,237	)		11,098			(26	)%	NM
Income from discontinued operations, net of tax		—			—			—			—			883		NM			NM

Net income/(loss)	$	(65,095	)	$	(51,495	)	$	(122,220	)	$	(16,237	)	$	11,981			(26	)%	NM
Net income/(loss) attributable to noncontrolling interest (g)		2,750			4,236			2,875			2,844			4,061			(35	)%		(32	)%

Net income/(loss) attributable to controlling interest	$	(67,845	)	$	(55,731	)	$	(125,095	)	$	(19,081	)	$	7,920			(22	)%	NM

Preferred stock dividends (h)		14,956			7,413			—			—			—			102	%	NM
Net income/(loss) available to common shareholders	$	(82,801	)	$	(63,144	)	$	(125,095	)	$	(19,081	)	$	7,920			(31	)%	NM


NM — Not meaningful

*		Amount is less than one percent.

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

1Q09 Key Impacts
(a)		Includes adjustment of reserves due to expiration of contingency periods on prior loan sales.
(b)		Includes a portion of net charges for $4.7 million, see Restructuring, Repositioning & Efficiency Initiatives page for further details.
(c)		Includes increase in National Specialty repurchase reserves.
(d)		Includes increase in reserves for employee life insurance obligation.
(e)		Includes increase in reinsurance reserves for PMI reinsurance contracts.
(f)		Includes increase in Mortgage Banking related repurchase reserves.
(g)		Represents preferred dividends previously reported in NIOE. Currently reported as noncontrolling interest due to adoption of SFAS 160.
(h)		1Q 09 includes $4.0 million amortization of initial discounted book value of CPP preferred.


OTHER INCOME AND OTHER EXPENSE Quarterly, Unaudited


																1Q09 Change vs.
(Thousands)	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08

Other Income
Brokerage management fees and commissions	$	6,632		$	7,307		$	7,824		$	8,690		$	8,413			(9	)%		(21	)%
Bank owned life insurance		4,131			5,107			6,731			6,343			6,962			(19	)%		(41	)%
Bankcard income		4,896			5,226			5,587			5,728			5,540			(6	)%		(12	)%
Other service charges		3,521			3,002			3,043			3,189			3,396			17	%		4	%
Remittance processing		3,143			3,160			3,314			3,206			3,273			(1	)%		(4	)%
Reinsurance fees		2,796			2,624			2,830			3,320			3,145			7	%		(11	)%
ATM interchange fees		2,205			2,485			2,263			2,238			2,238			(11	)%		(1	)%
Deferred compensation		(2,743	)		(12,531	)		(5,145	)		1,325			(6,550	)		78	%		58	%
Letter of credit		1,360			1,322			1,603			1,274			1,458			3	%		(7	)%
Electronic banking fees		1,609			1,492			1,535			1,572			1,618			8	%		(1	)%
Check clearing fees		337			538			838			887			862			(37	)%		(61	)%
Federal flood certifications		—			—			863			1,259			1,523		NM			NM
Gain on repurchase of debt		60			2,331			18,919			12,596			—			(97	)%	NM
Other (a)		(3,788	)		2,376			5,370			(1,454	)		6,369		NM			NM

Total	$	24,159		$	24,439		$	55,575		$	50,173		$	38,247			(1	)%		(37	)%


Other Expense
Computer software		6,896			7,151			7,162			8,120			7,956			(4	)%		(13	)%
Advertising and public relations		5,820			7,366			9,142			7,179			9,327			(21	)%		(38	)%
Travel and entertainment		2,679			3,314			3,358			5,672			5,027			(19	)%		(47	)%
Low income housing expense		5,125			4,289			5,064			4,815			4,566			19	%		12	%
Contract employment (b)		10,161			11,569			9,033			7,359			5,584			(12	)%		82	%
Foreclosed real estate (d)		22,300			10,941			4,979			10,720			6,362			104	%		251	%
Supplies		304			2,053			2,725			2,942			3,020			(85	)%		(90	)%
Loan closing costs		5,139			3,129			10,314			11,718			13,060			64	%		(61	)%
Customer relations		2,288			1,897			2,727			2,544			1,707			21	%		34	%
Other insurance and taxes		2,928			2,850			1,394			2,381			2,121			3	%		38	%
Employee training and dues		1,439			1,771			1,485			1,632			1,398			(19	)%		3	%
Fed services fees		1,367			1,526			1,975			1,941			1,611			(10	)%		(15	)%
Complimentary check expense		1,123			1,065			1,259			1,154			1,298			5	%		(13	)%
Loan insurance expense		1,912			1,482			1,477			1,198			1,113			29	%		72	%
Bank examination costs		1,248			514			1,523			1,054			1,053			143	%		19	%
Deposit insurance premium		7,628			4,288			4,146			3,403			2,827			78	%		170	%
Other (b) (c)		26,225			22,155			28,166			16,990			(12,316	)		18	%	NM

Total	$	104,582		$	87,360		$	95,929		$	90,822		$	55,714			20	%		88	%


NM — Not meaningful

*		Amount is less than one percent.

Certain previously reported amounts have been reclassified to agree with current presentation. 1Q09 Key Impacts
(a)		Includes increase in National Specialty repurchase reserves.
(b)		Includes a portion of net charges for $.8 million, see Restructuring, Repositioning & Efficiency Initiatives page for further details.
(c)		Includes increase in reinsurance reserves for PMI reinsurance contracts.
(d)		Includes increase in Mortgage Banking related repurchase reserves.


CONSOLIDATED PERIOD-END BALANCE SHEET Quarterly, Unaudited


																1Q09 Change vs.
(Thousands)	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08

Assets
Investment securities	$	3,016,013		$	3,125,153		$	2,840,739		$	2,896,928		$	3,034,798			(3	)%		(1	)%
Loans held for sale		643,518			566,654			718,029			2,554,030			3,616,018			14	%		(82	)%
Loans held for sale-divestiture (a)		—			—			—			—			207,672		NM			NM
Loans, net of unearned income		20,572,477			21,278,190			21,601,898			22,225,232			21,932,020			(3	)%		(6	)%
Federal funds sold and securities purchased under agreements to resell		515,858			772,357			921,295			1,166,982			898,615			(33	)%		(43	)%
Interest bearing cash (b)		1,174,442			207,792			37,546			39,829			46,382			465	%	NM
Trading securities		933,316			945,766			1,561,024			1,473,815			1,553,053			(1	)%		(40	)%
Trading securities-divestiture (a)		—			—			—			89,239			—		NM			NM

Total earning assets		26,855,624			26,895,912			27,680,531			30,446,055			31,288,558			*			(14	)%

Cash and due from banks		438,181			552,423			815,935			838,376			851,875			(21	)%		(49	)%
Capital markets receivables		1,502,033			1,178,932			1,651,547			994,571			1,680,057			27	%		(11	)%
Mortgage servicing rights, net		381,024			376,844			798,491			903,634			895,923			1	%		(57	)%
Mortgage servicing rights, net-divestiture (a)		—			—			—			235,761			—		NM			NM
Goodwill		192,408			192,408			192,408			192,408			192,408			*			*
Other intangible assets, net		43,446			45,081			46,887			48,615			52,017			(4	)%		(16	)%
Premises and equipment, net		330,299			333,931			336,078			344,410			382,488			(1	)%		(14	)%
Real estate acquired by foreclosure (c)		132,653			125,538			151,461			141,857			106,018			6	%		25	%
Allowance for loan losses		(940,932	)		(849,210	)		(760,456	)		(575,149	)		(483,203	)		(11	)%		(95	)%
Other assets		2,273,288			2,170,121			1,891,494			1,908,795			2,293,045			5	%		(1	)%
Other assets-divestiture (a)		—			—			—			70,628			8,759		NM			NM

Total assets	$	31,208,024		$	31,021,980		$	32,804,376		$	35,549,961		$	37,267,945			1	%		(16	)%


Liabilities and Shareholders’ Equity
Deposits
Savings	$	4,396,213		$	4,824,939		$	4,350,832		$	4,041,352		$	4,217,215			(9	)%		4	%
Other interest-bearing deposits		1,868,902			1,783,362			1,638,731			1,880,678			1,986,556			5	%		(6	)%
Time deposits		2,152,837			2,294,644			2,510,344			2,468,521			2,648,339			(6	)%		(19	)%
Interest bearing deposits-divestiture (a)		—			—			—			—			99,370		NM			NM

Total interest-bearing core deposits		8,417,952			8,902,945			8,499,907			8,390,551			8,951,480			(5	)%		(6	)%
Noninterest-bearing deposits		4,908,175			3,956,633			3,808,239			4,453,332			4,995,696			24	%		(2	)%
Noninterest-bearing deposits-divestiture (a)		—			—			—			296,632			18,197		NM			NM

Total core deposits		13,326,127			12,859,578			12,308,146			13,140,515			13,965,373			4	%		(5	)%

Certificates of deposit $100,000 and more		1,583,928			1,382,236			1,470,089			1,953,432			2,222,016			15	%		(29	)%
Certificates of deposit $100,000 and more-divestiture (a)		—			—			—			—			1,153		NM			NM

Total deposits		14,910,055			14,241,814			13,778,235			15,093,947			16,188,542			5	%		(8	)%

Federal funds purchased and securities sold under agreements to repurchase		2,264,077			1,751,079			1,890,681			2,620,014			3,678,217			29	%		(38	)%
Federal funds purchased and securities sold under agreements to repurchase-divestiture (a)		—			—			—			—			11,572			NM		NM
Trading liabilities		288,029			359,502			380,896			464,225			531,259			(20	)%		(46	)%
Other short term borrowings and commercial paper (d)		3,827,278			4,279,689			6,149,073			5,998,810			4,753,582			(11	)%		(19	)%
Term borrowings		3,353,464			4,022,297			4,545,791			5,783,407			6,060,795			(17	)%		(45	)%
Other collateralized borrowings		736,172			745,363			749,797			767,010			809,273			(1	)%		(9	)%

Total long-term debt		4,089,636			4,767,660			5,295,588			6,550,417			6,870,068			(14	)%		(40	)%

Capital markets payables		1,383,447			1,115,428			1,645,118			868,883			1,688,870			24	%		(18	)%
Other liabilities		937,826			932,176			785,061			959,476			1,136,461			1	%		(17	)%
Other liabilities-divestiture (a)		—			—			—			1,466			1,870			NM		NM

Total liabilities		27,700,348			27,447,348			29,924,652			32,557,238			34,860,441			1	%		(21	)%

Shareholders’ Equity
Preferred stock capital surplus — (CPP)		786,582			782,680			—			—			—			*		NM
Common stock		132,247			128,302			125,996			122,345			79,242			3	%		67	%
Capital surplus		1,087,252			1,048,602			1,016,498			980,428			362,823			4	%		200	%
Capital surplus common stock warrant — (CPP)		83,860			83,860			—			—			—			*		NM
Undivided profits		1,265,073			1,387,854			1,489,990			1,646,272			1,704,559			(9	)%		(26	)%
Accumulated other comprehensive loss, net		(142,503	)		(151,831	)		(48,037	)		(51,599	)		(34,397	)		6	%		(314	)%
Noncontrolling interest		295,165			295,165			295,277			295,277			295,277			*			*

Total shareholders’ equity		3,507,676			3,574,632			2,879,724			2,992,723			2,407,504			(2	)%		46	%

Total liabilities and shareholders’ equity	$	31,208,024		$	31,021,980		$	32,804,376		$	35,549,961		$	37,267,945			1	%		(16	)%


NM — Not meaningful

*		Amount is less than one percent.

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

(a)		Second quarter 2008 associated with the sale of certain mortgage operations, prior periods associated with the sale of First Horizon Bank branches.

(b)		Includes excess balances held at Fed.

(c)		First quarter 2009 includes $13.6 million of foreclosed assets related to government insured mortgages.

(d)		First quarter 2009 includes $3.5 billion of FRB Term Auction Facility borrowings.


CONSOLIDATED AVERAGE AND PERIOD-END LOANS Quarterly, Unaudited


											1Q09 Change vs.
(Thousands)	1Q09		4Q08		3Q08		2Q08		1Q08		4Q08			1Q08

Average Loans (Net)
Commercial
Commercial, financial and industrial	$	7,781,708	$	7,516,557	$	7,530,724	$	7,212,907	$	7,121,890		4	%		9	%
Real estate commercial (a)		1,492,906		1,479,582		1,497,773		1,401,267		1,347,377		1	%		11	%
Real estate construction (b)		1,689,863		1,917,647		2,162,817		2,481,680		2,713,253		(12	)%		(38	)%

Total commercial loans		10,964,477		10,913,786		11,191,314		11,095,854		11,182,520		*			(2	)%

Retail
Real estate residential (c)		8,095,128		8,172,174		8,166,295		7,878,845		7,774,415		(1	)%		4	%
Real estate construction (d)		880,537		1,087,752		1,350,092		1,666,007		1,909,061		(19	)%		(54	)%
Other retail		135,537		137,185		138,848		138,242		141,961		(1	)%		(5	)%
Credit card receivables		184,244		190,189		193,517		193,850		195,081		(3	)%		(6	)%
Real estate loans pledged against other collateralized borrowings (e)		709,144		716,925		721,760		735,828		755,071		(1	)%		(6	)%

Total retail loans		10,004,590		10,304,225		10,570,512		10,612,772		10,775,589		(3	)%		(7	)%

Total loans, net of unearned income	$	20,969,067	$	21,218,011	$	21,761,826	$	21,708,626	$	21,958,109		(1	)%		(5	)%


Period-End Loans (Net)
Commercial
Commercial, financial and industrial	$	7,716,733	$	7,863,727	$	7,642,684	$	7,717,110	$	7,238,630		(2	)%		7	%
Real estate commercial (a)		1,501,964		1,454,040		1,492,323		1,463,726		1,345,526		3	%		12	%
Real estate construction (b)		1,550,158		1,778,140		2,020,455		2,271,533		2,602,968		(13	)%		(40	)%

Total commercial loans		10,768,855		11,095,907		11,155,462		11,452,369		11,187,124		(3	)%		(4	)%

Retail
Real estate residential (c)		8,016,018		8,161,435		8,192,926		8,196,622		7,858,109		(2	)%		2	%
Real estate construction (d)		772,982		980,798		1,201,911		1,513,845		1,814,863		(21	)%		(57	)%
Other retail		132,452		135,779		139,441		138,970		138,253		(2	)%		(4	)%
Credit card receivables		180,282		189,554		194,966		195,703		191,119		(5	)%		(6	)%
Real estate loans pledged against other collateralized borrowings (e)		701,888		714,717		717,192		727,723		742,552		(2	)%		(5	)%

Total retail loans		9,803,622		10,182,283		10,446,436		10,772,863		10,744,896		(4	)%		(9	)%

Total loans, net of unearned income	$	20,572,477	$	21,278,190	$	21,601,898	$	22,225,232	$	21,932,020		(3	)%		(6	)%


*		Amount is less than one percent.

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

(a)		Includes nonconstruction income property loans.

(b)		Includes home builder, condominium, and income property construction loans.

(c)		Includes home equity loans, home equity lines of credit and permanent mortgages.

(d)		Includes one-time close product.

(e)		Includes on balance sheet securitizations of home equity loans.


CONSOLIDATED AVERAGE BALANCE SHEET Quarterly, Unaudited


																1Q09 Change vs.
(Thousands)	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08

Assets:
Earning assets:
Loans, net of unearned income (a)	$	20,969,067		$	21,218,011		$	21,761,826		$	21,708,626		$	21,958,109			(1	)%		(5	)%
Loans held for sale		626,679			650,844			1,950,831			3,606,621			3,728,008			(4	)%		(83	)%
Loans held for sale-divestiture (b)		—			—			—			195,175			248,751		NM			NM
Investment securities:
U.S. Treasuries		48,593			48,415			47,843			47,123			43,305				*		12	%
U.S. government agencies		2,685,774			2,576,587			2,524,895			2,649,651			2,725,948			4	%		(1	)%
States and municipalities		63,425			75,084			31,682			31,347			12,847			(16	)%		394	%
Other		292,151			282,639			268,939			257,907			232,472			3	%		26	%

Total investment securities		3,089,943			2,982,725			2,873,359			2,986,028			3,014,572			4	%		3	%

Capital markets securities inventory		1,117,165			1,135,270			1,355,501			1,630,501			1,961,964			(2	)%		(43	)%
Mortgage banking trading securities		171,978			242,930			304,278			387,469			405,579			(29	)%		(58	)%
Mortgage banking trading securities-divestiture (b)		—			—			62,131			981			—		NM			NM
Other earning assets:
Federal funds sold and securities purchased under agreements to resell		806,704			911,387			1,213,510			1,275,548			1,304,707			(11	)%		(38	)%
Interest bearing cash (c)		656,841			546,732			39,666			36,573			46,093			20	%	NM

Total other earning assets		1,463,545			1,458,119			1,253,176			1,312,121			1,350,800				*		8	%

Total earning assets		27,438,377			27,687,899			29,561,102			31,827,522			32,667,783			(1	)%		(16	)%

Allowance for loan losses		(889,630	)		(741,076	)		(619,977	)		(529,124	)		(359,600	)		20	%		147	%
Cash and due from banks		482,260			495,500			638,467			697,013			786,693			(3	)%		(39	)%
Capital markets receivables		269,417			432,614			196,285			251,667			297,908			(38	)%		(10	)%
Premises and equipment, net		332,241			334,642			339,575			373,403			390,291			(1	)%		(15	)%
Other assets		2,834,546			2,839,665			3,219,952			3,517,017			3,367,729				*		(16	)%
Other assets-divestiture (b)		—			—			46,091			8,603			11,581		NM			NM

Total assets	$	30,467,211		$	31,049,244		$	33,381,495		$	36,146,101		$	37,162,385			(2	)%		(18	)%


Liabilities and shareholders’ equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Interest bearing deposits-divestiture (b)	$	—		$	—		$	—		$	30,695		$	127,352		NM			NM
Other interest-bearing deposits		1,792,241			1,615,764			1,724,504			1,911,341			1,922,506			11	%		(7	)%
Savings		4,629,345			4,741,073			4,002,907			4,180,739			4,134,308			(2	)%		12	%
Time deposits		2,216,411			2,461,921			2,422,189			2,530,300			2,763,335			(10	)%		(20	)%

Total interest-bearing core deposits		8,637,997			8,818,758			8,149,600			8,653,075			8,947,501			(2	)%		(3	)%
Certificates of deposit $100,000 and more		1,507,482			1,491,297			1,839,651			2,022,972			2,696,781			1	%		(44	)%
Certificates of deposit $100,000 and more-divestiture (b)		—			—			—			279			4,770		NM			NM

Federal funds purchased and securities sold under agreements to repurchase		2,266,424			2,021,033			2,593,485			3,810,955			5,236,736			12	%		(57	)%
Federal funds purchased and securities sold under agreements to repurchase-divestiture (b)		—			—			—			3,102			16,171		NM			NM
Capital markets trading liabilities		575,446			488,102			708,875			768,565			846,369			18	%		(32	)%
Other short-term borrowings and commercial paper (d)		4,212,480			5,096,108			6,083,691			5,513,454			3,850,704			(17	)%		9	%
Long term debt:
Term borrowings		3,534,657			4,266,510			5,193,319			5,886,694			6,013,433			(17	)%		(41	)%
Other collateralized borrowings		742,491			747,824			756,999			792,388			790,811			(1	)%		(6	)%

Total long-term debt		4,277,148			5,014,334			5,950,318			6,679,082			6,804,244			(15	)%		(37	)%

Total interest-bearing liabilities		21,476,977			22,929,632			25,325,620			27,451,484			28,403,276			(6	)%		(24	)%

Noninterest-bearing deposits		4,388,807			3,652,161			4,031,157			4,619,333			4,743,479			20	%		(7	)%
Other noninterest-bearing deposits-divestiture (b)		—			—			3,038			8,902			21,327		NM			NM
Capital markets payables		198,358			374,368			178,289			232,282			292,846			(47	)%		(32	)%
Other liabilities		823,929			692,759			827,244			995,931			1,234,695			19	%		(33	)%
Other liabilities-divestiture (b)		—			—			1,397			1,022			2,335		NM			NM
Shareholders’ equity		3,579,140			3,400,324			3,014,750			2,837,147			2,464,427			5	%		45	%

Total liabilities and shareholders’ equity	$	30,467,211		$	31,049,244		$	33,381,495		$	36,146,101		$	37,162,385			(2	)%		(18	)%



NM — Not meaningful

*		Amount is less than one percent.

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

(a)		Includes loans on nonaccrual status.

(b)		Third and second quarters 2008 associated with the sale of certain mortgage operations, prior periods associated with the sale of First Horizon Bank branches.

(c)		Includes excess balances held at Fed.

(d)		In first quarter 2009, FRB Term Auction Facility borrowings averaged $3.1 billion and FHLB borrowings averaged $.8 billion.


CONSOLIDATED AVERAGE BALANCE SHEET: INCOME & EXPENSE Quarterly, Unaudited


																1Q09 Change vs.
(Thousands)	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08

Assets:
Earning assets:
Loans, net of unearned income (a)	$	205,825		$	254,946		$	281,777		$	285,539		$	331,803			(19	)%		(38	)%
Loans held for sale		7,732			9,821			29,078			54,217			58,438			(21	)%		(87	)%
Investment securities:
U.S. Treasuries		223			233			250			249			340			(4	)%		(34	)%
U.S. government agencies		37,331			36,565			34,886			36,573			37,954			2	%		(2	)%
States and municipalities		371			944			372			324			220			(61	)%		69	%
Other		2,258			6,080			3,336			2,159			2,290			(63	)%		(1	)%

Total investment securities		40,183			43,822			38,844			39,305			40,804			(8	)%		(2	)%

Capital markets securities inventory		10,198			12,790			15,898			18,131			22,652			(20	)%		(55	)%
Mortgage banking trading securities		5,500			8,253			11,781			12,120			13,363			(33	)%		(59	)%
Other earning assets:
Federal funds sold and securities purchased under agreements to resell		505			1,493			5,944			6,266			9,341			(66	)%		(95	)%
Interest bearing cash		360			850			253			189			357			(58	)%		1	%

Total other earning assets		865			2,343			6,197			6,455			9,698			(63	)%		(91	)%

Total earning assets/interest income	$	270,303		$	331,975		$	383,575		$	415,767		$	476,758			(19	)%		(43	)%


Liabilities:
Interest-bearing liabilities:
Interest-bearing deposits:
Other interest-bearing deposits	$	1,068		$	1,552		$	2,849		$	3,556		$	5,906			(31	)%		(82	)%
Savings		15,404			18,666			17,005			18,362			25,888			(17	)%		(40	)%
Time deposits		18,243			21,739			22,443			25,540			31,502			(16	)%		(42	)%

Total interest-bearing core deposits		34,715			41,957			42,297			47,458			63,296			(17	)%		(45	)%
Certificates of deposit $100,000 and more		9,459			12,680			15,184			17,361			31,069			(25	)%		(70	)%

Federal funds purchased and securities sold under agreements to repurchase		1,169			2,738			10,696			17,834			38,521			(57	)%		(97	)%
Capital markets trading liabilities		5,468			5,876			8,304			9,400			9,615			(7	)%		(43	)%
Other short-term borrowings and commercial paper		3,094			20,164			36,496			31,591			31,527			(85	)%		(90	)%
Long term debt:
Term borrowings		18,085			38,062			41,598			47,129			66,303			(52	)%		(73	)%
Other collateralized borrowings		1,515			5,129			5,521			5,817			8,020			(70	)%		(81	)%

Total long-term debt		19,600			43,191			47,119			52,946			74,323			(55	)%		(74	)%

Total interest-bearing liabilities/interest expense	$	73,505		$	126,606		$	160,096		$	176,590		$	248,351			(42	)%		(70	)%

Net interest income-tax equivalent basis	$	196,798		$	205,369		$	223,479		$	239,177		$	228,407			(4	)%		(14	)%
Fully taxable equivalent adjustment		(211	)		(421	)		(332	)		(282	)		(315	)		50	%		33	%

Net interest income	$	196,587		$	204,948		$	223,147		$	238,895		$	228,092			(4	)%		(14	)%


NM — Not meaningful

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

Income amounts are adjusted to a fully taxable equivalent. Earning assets income is expressed net of unearned income.

(a)		Includes loans on nonaccrual status.


CONSOLIDATED AVERAGE BALANCE SHEET: YIELDS & RATES Quarterly, Unaudited


(Thousands)	1Q09			4Q08			3Q08			2Q08			1Q08

Assets:
Earning assets:
Loans, net of unearned income (a)		3.97	%		4.78	%		5.16	%		5.29	%		6.07	%
Loans held for sale		4.94			6.04			5.96			5.70			5.88
Investment securities:
U.S. Treasuries		1.86			1.92			2.08			2.13			3.15
U.S. government agencies		5.56			5.68			5.53			5.52			5.57
States and municipalities		2.34			5.03			4.70			4.14			6.87
Other		3.09			8.60			4.96			3.35			3.94

Total investment securities		5.20			5.88			5.41			5.27			5.41

Capital markets securities inventory		3.65			4.51			4.69			4.45			4.62
Mortgage banking trading securities		12.79			13.59			12.86			12.48			13.18
Other earning assets:
Federal funds sold and securities purchased under agreements to resell		.25			.65			1.95			1.98			2.88
Interest bearing cash		.22			.62			2.54			2.08			3.11

Total other earning assets		.24			.64			1.97			1.98			2.89

Total earning assets/interest income		3.98	%		4.78	%		5.17	%		5.24	%		5.86	%


Liabilities:
Interest-bearing liabilities:
Interest-bearing deposits:
Other interest-bearing deposits		.24	%		.38	%		.66	%		.74	%		1.19	%
Savings		1.35			1.57			1.69			1.76			2.50
Time deposits		3.34			3.51			3.69			4.06			4.55

Total interest-bearing core deposits		1.63			1.89			2.06			2.21			2.85
Certificates of deposit $100,000 and more		2.54			3.38			3.28			3.45			4.63

Federal funds purchased and securities sold under agreements to repurchase		.21			.54			1.64			1.88			2.95
Capital markets trading liabilities		3.85			4.79			4.66			4.92			4.57
Other short-term borrowings and commercial paper		.30			1.57			2.39			2.30			3.29
Long term debt:
Term borrowings		2.05			3.57			3.21			3.20			4.41
Other collateralized borrowings		.82			2.74			2.92			2.94			4.06

Total long-term debt		1.83			3.45			3.17			3.17			4.37

Total interest-bearing liabilities/interest expense		1.38	%		2.20	%		2.52	%		2.58	%		3.51	%

Net interest spread		2.60	%		2.58	%		2.65	%		2.66	%		2.35	%
Effect of interest-free sources used to fund earning assets		.29			.38			.36			.35			.46

Net interest margin		2.89	%		2.96	%		3.01	%		3.01	%		2.81	%

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

Yields are adjusted to a fully taxable equivalent.

Earning assets yields are expressed net of unearned income.

Rates are expressed net of unamortized debenture cost for long-term debt.

Net interest margin is computed using total net interest income.

(a) Includes loans on nonaccrual status.


MORTGAGE SERVICING RIGHTS Quarterly, Unaudited


																1Q09 Change vs.
(Thousands)	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08

First Liens
Fair value beginning balance	$	354,394		$	770,635		$	1,111,204		$	865,855		$	1,122,415			(54	)%		(68	)%
Addition of mortgage servicing rights		189			1,073			61,501			100,305			78,871
Reductions due to loan payments		(17,480	)		(10,771	)		(22,179	)		(38,598	)		(37,448	)
Reductions due to sale		—			(52,006	)		(317,640	)		(72,271	)		(43,842	)
Changes in fair value due to:
Changes in valuation model inputs or assumptions (a)		26,740			(354,558	)		(63,061	)		255,890			(254,076	)
Other changes in fair value		(2,500	)		21			810			23			(65	)

Fair value ending balance	$	361,343		$	354,394		$	770,635		$	1,111,204		$	865,855			2	%		(58	)%


Second Liens
Fair value beginning balance	$	13,558		$	17,513		$	18,138		$	20,126		$	25,832			(23	)%		(48	)%
Addition of mortgage servicing rights		—			—			—			—			—
Reductions due to loan payments		(2,524	)		(1,517	)		(614	)		(1,737	)		(2,617	)
Changes in fair value due to:
Changes in valuation model inputs or assumptions (a)		(5	)		(2,438	)		(14	)		(254	)		(3,089	)
Other changes in fair value		—			—			3			3			—

Fair value ending balance	$	11,029		$	13,558		$	17,513		$	18,138		$	20,126			(19	)%		(45	)%


HELOC
Fair value beginning balance	$	8,892		$	10,343		$	10,053		$	9,942		$	11,573			(14	)%		(23	)%
Addition of mortgage servicing rights		11			43			43			215			887
Reductions due to loan payments		(419	)		(432	)		(483	)		(491	)		(707	)
Changes in fair value due to:
Changes in valuation model inputs or assumptions (a)		—			(1,401	)		—			(230	)		(1,935	)
Other changes in fair value		168			339			730			617			124

Fair value ending balance	$	8,652		$	8,892		$	10,343		$	10,053		$	9,942			(3	)%		(13	)%


Total Consolidated
Fair value beginning balance	$	376,844		$	798,491		$	1,139,395		$	895,923		$	1,159,820			(53	)%		(68	)%
Addition of mortgage servicing rights		200			1,116			61,544			100,520			79,758
Reductions due to loan payments		(20,423	)		(12,720	)		(23,276	)		(40,826	)		(40,772	)
Reductions due to sale		—			(52,006	)		(317,640	)		(72,271	)		(43,842	)
Changes in fair value due to:
Changes in valuation model inputs or assumptions (a)		26,735			(358,397	)		(63,075	)		255,406			(259,100	)
Other changes in fair value		(2,332	)		360			1,543			643			59

Fair value ending balance	$	381,024		$	376,844		$	798,491		$	1,139,395		$	895,923			1	%		(57	)%

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

(a)

Principally reflects changes in discount rates and prepayment speed assumptions, mostly due to changes in interest rates.


BUSINESS SEGMENT HIGHLIGHTS Quarterly, Unaudited


																1Q09 Change vs.
(Thousands)	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08

Regional Banking
Total revenues (a)	$	182,259		$	199,884		$	210,193		$	212,837		$	207,687			(9	)%		(12	)%
Provision for loan losses		97,826			105,825			58,200			89,477			75,265			(8	)%		30	%
Noninterest expenses		173,725			168,130			157,652			149,048			151,154			3	%		15	%

Pre-tax loss		(89,292	)		(74,071	)		(5,659	)		(25,688	)		(18,732	)		(21	)%		(377	)%
Benefit for income taxes		(38,930	)		(29,247	)		(12,705	)		(20,690	)		(15,409	)		(33	)%		(153	)%

Net income/(loss) from continuing operations		(50,362	)		(44,824	)		7,046			(4,998	)		(3,323	)		(12	)%	NM
Income from discontinued operations, net of tax		—			—			—			—			883		NM			NM

Net income/(loss)	$	(50,362	)	$	(44,824	)	$	7,046		$	(4,998	)	$	(2,440	)		(12	)%	NM


National Specialty Lending
Total revenues (a)	$	26,691		$	36,212		$	49,304		$	38,867		$	54,773			(26	)%		(51	)%
Provision for loan losses		188,573			144,049			240,471			108,000			149,482			31	%		26	%
Noninterest expenses		30,588			24,094			25,183			28,072			26,495			27	%		15	%

Pre-tax loss		(192,470	)		(131,931	)		(216,350	)		(97,205	)		(121,204	)		(46	)%		(59	)%
Benefit for income taxes		(72,523	)		(49,712	)		(80,144	)		(34,106	)		(46,964	)		(46	)%		(54	)%

Net loss	$	(119,947	)	$	(82,219	)	$	(136,206	)	$	(63,099	)	$	(74,240	)		(46	)%		(62	)%


Mortgage Banking
Total revenues (a)	$	130,475		$	94,933		$	137,865		$	222,289		$	198,059			37	%		(34	)%
Provision for loan losses		(408	)		22,018			2,878			4,001			222			(102	)%	NM
Noninterest expenses		47,627			39,640			92,925			153,728			149,587			20	%		(68	)%

Pre-tax income		83,256			33,275			42,062			64,560			48,250			150	%		73	%
Provision for income taxes		31,371			12,124			15,255			21,399			17,472			159	%		80	%

Net income	$	51,885		$	21,151		$	26,807		$	43,161		$	30,778			145	%		69	%


Capital Markets
Total revenues (a)	$	240,097		$	197,445		$	117,555		$	143,221		$	153,688			22	%		56	%
Provision for loan losses		14,009			8,108			38,451			18,522			15,031			73	%		(7	)%
Noninterest expenses		151,830			115,454			87,334			100,265			115,812			32	%		31	%

Pre-tax income/(loss)		74,258			73,883			(8,230	)		24,434			22,845			1	%		225	%
Provision/(benefit) for income taxes		27,911			27,713			(3,237	)		9,098			8,446			1	%		230	%

Net income/(loss)	$	46,347		$	46,170		$	(4,993	)	$	15,336		$	14,399			*			222	%


Corporate
Total revenues (a)	$	24,934		$	14,492		$	13,403		$	20,727		$	62,961			72	%		(60	)%
Noninterest expenses		13,558			(1,869	)		36,305			31,886			(8,832	)	NM			NM

Pre-tax income/(loss)		11,376			16,361			(22,902	)		(11,159	)		71,793			(30	)%		(84	)%
Provision/(benefit) for income taxes		4,394			8,134			(8,028	)		(4,522	)		28,309			(46	)%		(84	)%

Net income/(loss)	$	6,982		$	8,227		$	(14,874	)	$	(6,637	)	$	43,484			(15	)%		(84	)%


Total Consolidated
Total revenues (a)	$	604,456		$	542,966		$	528,320		$	637,941		$	677,168			11	%		(11	)%
Provision for loan losses		300,000			280,000			340,000			220,000			240,000			7	%		25	%
Noninterest expenses		417,328			345,449			399,399			462,999			434,216			21	%		(4	)%

Pre-tax income/(loss)		(112,872	)		(82,483	)		(211,079	)		(45,058	)		2,952			(37	)%	NM
Benefit for income taxes		(47,777	)		(30,988	)		(88,859	)		(28,821	)		(8,146	)		(54	)%	NM

Net income/(loss) from continuing operations		(65,095	)		(51,495	)		(122,220	)		(16,237	)		11,098			(26	)%	NM
Income from discontinued operations, net of tax		—			—			—			—			883		NM			NM

Net income/(loss)	$	(65,095	)	$	(51,495	)	$	(122,220	)	$	(16,237	)	$	11,981			(26	)%	NM

NM — Not meaningful

Amount is less than one percent.

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

(a)

Includes noninterest income and net interest income.


REGIONAL BANKING Quarterly, Unaudited


																1Q09 Change vs.
(Thousands)	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08

Income Statement
Net interest income	$	105,969		$	117,163		$	122,162		$	120,153		$	120,483			(10	)%		(12	)%
Noninterest income		76,290			82,721			88,031			92,684			87,204			(8	)%		(13	)%
Securities gains/(losses), net		—			—			—			—			—		NM			NM

Total revenue		182,259			199,884			210,193			212,837			207,687			(9	)%		(12	)%

Total noninterest expense		173,725			168,130			157,652			149,048			151,154			3	%		15	%
Provision		97,826			105,825			58,200			89,477			75,265			(8	)%		30	%

Pretax income/(loss)	$	(89,292	)	$	(74,071	)	$	(5,659	)	$	(25,688	)	$	(18,732	)		(21	)%		(377	)%


Efficiency ratio		95.32	%		84.11	%		75.00	%		70.03	%		72.78	%


Balance Sheet (millions)
Average loans	$	10,887		$	10,898		$	10,915		$	10,801		$	10,705			*			2	%
Other earning assets		203			163			65			242			339			25	%		(40	)%
Total earning assets		11,090			11,061			10,980			11,043			11,044			*			*
Core deposits		10,250			9,753			9,564			9,970			10,059			5	%		2	%
Other deposits		996			978			976			1,053			1,160			2	%		(14	)%
Deposits — divestiture		—			—			—			37			153		NM			NM
Total deposits		11,246			10,731			10,540			11,060			11,372			5	%		(1	)%
Total period end deposits		11,493			10,993			10,621			11,035			11,370			5	%		1	%
Total period end assets	$	11,525		$	12,001		$	12,303		$	12,228		$	12,175			(4	)%		(5	)%

Net interest margin		3.88	%		4.21	%		4.43	%		4.38	%		4.39	%		(8	)%		(12	)%


Noninterest Income Detail
Deposit transactions & cash mgmt	$	37,438		$	42,388		$	44,470		$	45,404		$	41,230			(12	)%		(9	)%
Insurance commissions		6,966			7,027			7,160			7,033			7,854			(1	)%		(11	)%
Trust services & investment mgmt		6,840			7,697			8,192			8,915			9,147			(11	)%		(25	)%
Bankcard income		4,129			4,416			4,706			4,752			4,491			(6	)%		(8	)%
Other service charges		3,485			3,500			3,556			3,780			4,037			*			(14	)%
Miscellaneous revenue		17,432			17,693			19,947			22,800			20,445			(1	)%		(15	)%

Total noninterest income	$	76,290		$	82,721		$	88,031		$	92,684		$	87,204			(8	)%		(13	)%


Key Statistics
Locations
Financial Centers		202			202			200			198			206			*			(2	)%
First Tennessee		202			202			200			198			197			*			3	%
Full Service		168			169			166			163			161			(1	)%		4	%
Teller-Only		34			33			34			35			36			3	%		(6	)%
First Horizon Bank		—			—			—			—			9		NM			NM

Trust Assets
Total assets (millions)	$	8,872		$	9,606		$	11,015		$	11,291		$	11,681			(8	)%		(24	)%
Total managed assets (millions)		4,467			4,664			5,089			5,373			5,641			(4	)%		(21	)%

NM — Not meaningful

* Amount is less than one percent.

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


CAPITAL MARKETS Quarterly, Unaudited


																1Q09 Change vs.
(Thousands)	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08

Income Statement
Net interest income
Correspondent Banking	$	14,144		$	12,381		$	11,908		$	12,518		$	12,963			14	%		9	%
Capital Markets		9,263			7,779			7,133			6,070			6,820			19	%		36	%
Total net interest income		23,407			20,160			19,041			18,588			19,783			16	%		18	%

Noninterest income:
Fixed income		197,005			156,522			80,104			105,002			152,208			26	%		29	%
Other		19,685			20,763			18,410			19,631			(18,303	)		(5	)%	NM
Total noninterest income		216,690			177,285			98,514			124,633			133,905			22	%		62	%

Total revenue		240,097			197,445			117,555			143,221			153,688			22	%		56	%

Noninterest expense		151,830			115,454			87,334			100,265			115,812			32	%		31	%

Provision		14,009			8,108			38,451			18,522			15,031			73	%		(7	)%

Pretax income/(loss)	$	74,258		$	73,883		$	(8,230	)	$	24,434		$	22,845			1	%		225	%


Efficiency ratio		63.24	%		58.47	%		74.29	%		70.01	%		75.36	%


Balance Sheet (millions)
Trading inventory	$	1,117		$	1,135		$	1,356		$	1,631		$	1,962			(2	)%		(43	)%
Average Loans (a)		1,962			1,720			1,759			1,491			1,465			14	%		34	%
Other earning assets		874			980			1,275			1,656			1,728			(11	)%		(49	)%
Total earning assets		3,953			3,835			4,390			4,778			5,155			3	%		(23	)%
Total period end assets	$	5,219		$	5,051		$	5,960		$	5,582		$	6,142			3	%		(15	)%

Net interest margin:
Correspondent Banking		3.86	%		3.47	%		2.99	%		3.09	%		3.32	%
Capital Markets		1.52	%		1.28	%		1.01	%		.78	%		.76	%
Total Capital Markets		2.40	%		2.09	%		1.73	%		1.56	%		1.54	%

NM — Not meaningful

Amount is less than one percent.

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

(a)

Includes trust preferred warehouse loans moved from loans held for sale to loans held to maturity in 2Q08.


NATIONAL SPECIALTY LENDING Quarterly, Unaudited


																1Q09 Change vs.
(Thousands)	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08

Income Statement
Net interest income	$	33,361		$	36,773		$	45,182		$	53,465		$	54,221			(9	)%		(38	)%
Noninterest income		(6,670	)		(561	)		4,122			(14,598	)		552		NM			NM

Total revenue		26,691			36,212			49,304			38,867			54,773			(26	)%		(51	)%

Total noninterest expense		30,588			24,094			25,183			28,072			26,495			27	%		15	%
Provision		188,573			144,049			240,471			108,000			149,482			31	%		26	%

Pretax (loss)	$	(192,470	)	$	(131,931	)	$	(216,350	)	$	(97,205	)	$	(121,204	)		(46	)%		(59	)%


Efficiency ratio		114.60	%		66.54	%		51.08	%		72.23	%		48.37	%


Balance Sheet (millions)
Average loans	$	7,484		$	7,922		$	8,415		$	8,966		$	9,393			(6	)%		(20	)%
Other earning assets		9			9			8			17			21			*			(57	)%
Total earning assets		7,493			7,931			8,423			8,983			9,414			(6	)%		(20	)%
Total deposits		134			140			181			240			291			(4	)%		(54	)%
Total period end deposits		131			126			156			208			260			4	%		(50	)%

Net interest margin		1.81	%		1.84	%		2.13	%		2.39	%		2.32	%



NM — Not meaningful

*		Amount is less than one percent.

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


MORTGAGE BANKING Quarterly, Unaudited


																1Q09 Change vs.
(Thousands)	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08	1Q08

Income Statement
Net interest income	$	7,563		$	8,904		$	22,045		$	31,827		$	30,045		NM	NM
Noninterest income
Net origination fees		14,454			(14,383	)		19,828			134,095			84,056		NM	NM
Net servicing fees		101,202			99,402			80,603			42,614			69,344		NM	NM
Other fees		7,256			1,011			15,389			13,753			14,614		NM	NM

Total noninterest income		122,912			86,030			115,820			190,462			168,014		NM	NM

Total revenue		130,475			94,934			137,865			222,289			198,059		NM	NM

Noninterest expense		47,627			39,640			92,925			153,728			149,587		NM	NM
Provision		(408	)		22,018			2,878			4,001			222		NM	NM

Pretax income	$	83,256		$	33,276		$	42,062		$	64,560		$	48,250		NM	NM


Efficiency ratio		36.50	%		41.76	%		67.40	%		69.16	%		75.53	%


Average Balance Sheet (millions)
Warehouse	$	430		$	489		$	1,810		$	3,182		$	3,230		NM	NM
Trading securities		164			235			359			372			387		NM	NM
Mortgage servicing rights		396			633			1,003			974			1,020		NM	NM
Permanent Mortgages & other assets		1,571			1,347			1,658			1,687			1,467		NM	NM
Total assets		2,561			2,704			4,830			6,215			6,104		NM	NM
Escrow balances		1,165			725			989			1,516			1,691		NM	NM

Net interest margin		2.18	%		2.31	%		2.99	%		3.16	%		2.98	%
Warehouse Spread	NM			NM				3.83	%		3.14	%		2.63	%


Noninterest Expense Detail
Commissions & incentives	$	—		$	130		$	18,415		$	41,369		$	45,956
FAS 91 cost deferral		57			492			1,097			1,789			764
Other salaries & benefits		(27	)		(2,090	)		22,011			39,228			35,700

Total salaries & benefits		30			(1,468	)		41,523			82,386			82,420		NM	NM

Contract labor & outsourcing		7,247			7,381			5,207			3,654			2,781
Equipment & occupancy		945			3,448			8,882			13,513			14,895
Foreclosure provision		12,267			2,752			849			5,535			2,395
Other expenses		25,175			25,674			32,636			43,535			45,115

Total expenses before FAS 91 reclass		45,664			37,787			89,097			148,623			147,606		NM	NM

FAS 91 reclassification (a)		(73	)		(517	)		(3,064	)		(4,520	)		(3,962	)
Total noninterest expense before segment allocations		45,591			37,270			86,033			144,103			143,644
Segment allocations		2,036			2,370			6,892			9,625			5,943

Total noninterest expense	$	47,627		$	39,640		$	92,925		$	153,728		$	149,587		NM	NM


Origination Income
Origination fees	$	26		$	(55	)	$	22,995		$	48,555		$	54,636
FAS 91 fee deferral		57			496			937			1,381			—
Appraisal, final inspection, credit report fees		—			45			2,824			5,537			5,953

Total origination fees	$	83		$	486		$	26,756		$	55,473		$	60,589		NM	NM

Total origination income	$	14,454		$	(14,383	)	$	19,828		$	134,095		$	84,056		NM	NM


Warehouse/Pipeline (millions)
Ending Warehouse Balance	$	442		$	408		$	541		$	2,433		$	3,130		NM	NM


Production (millions)
First lien production	$	408		$	88		$	3,107		$	6,826		$	7,510		NM	NM


NM — Not meaningful due to Mortgage sale in 3Q08

*		Amount is less than one percent.

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

(a)		See Glossary of Terms.


MORTGAGE BANKING: SERVICING Quarterly, Unaudited


																1Q09 Change vs.
(Thousands)	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08

Servicing Income
Gross Service Fees	$	40,120		$	47,810		$	57,326		$	74,941		$	88,891
Guarantee Fees		(6,884	)		(7,626	)		(11,073	)		(16,762	)		(18,791	)
Sub-Service Fee Income		—			103			394			504			243
Lender Paid MI		—			5			(1,029	)		(3	)		(4	)

Net Service Fees		33,236			40,292			45,618			58,680			70,339			(18	)%		(53	)%

Early Payoff Interest Expense		(3,716	)		(1,562	)		(1,733	)		(4,477	)		(5,446	)
Ancillary Fees		5,511			5,949			5,994			8,991			9,214

Total Service Fees		35,031			44,679			49,879			63,194			74,107			(22	)%		(53	)%

Change in MSR Value — Runoff		(18,559	)		(9,899	)		(20,091	)		(37,079	)		(37,449	)		(87	)%		50	%

Net hedging results:
Change in MSR Value — Other than Runoff		27,282			(327,310	)		(39,180	)		237,816			(255,485	)
MSR Hedge Gains/(Losses)		25,112			385,354			91,804			(219,454	)		280,935
Change in Trading Asset Value		18,339			(99,354	)		(11,198	)		83,543			(74,136	)
Trading Asset Hedge Gains/(Losses)		(13,997	)		108,742			21,505			(78,832	)		86,322
Option Expense on Servicing Hedges		—			(2,811	)		(12,116	)		(6,574	)		(4,950	)

Total net hedging results		84,730			64,621			50,815			16,499			32,686			31	%		159	%

Total Servicing Income	$	101,202		$	99,401		$	80,603		$	42,614		$	69,344			2	%		46	%


Key Servicing Metrics (millions)
Beginning Servicing Portfolio	$	63,661		$	65,346		$	98,385		$	99,022		$	103,709
Additions to portfolio		306			(83	)		3,107			6,991			7,650
Prepayments		(3,492	)		(1,146	)		(1,350	)		(2,811	)		(4,144	)
Amortization		(342	)		(420	)		(550	)		(672	)		(675	)
Service Release Sales		—			(31	)		(117	)		(76	)		(69	)
Bulk Sale		—			(5	)		(34,129	)		(4,069	)		(7,449	)
Ending Servicing Portfolio (Owned)	$	60,133		$	63,661		$	65,346		$	98,385		$	99,022			(6	)%		(39	)%

Avg. Servicing Portfolio (Owned)	$	61,870		$	64,550		$	81,130		$	95,124		$	103,794			(4	)%		(40	)%
Average Loans Serviced (#)		338,799			351,157			450,651			547,828			618,505			(4	)%		(45	)%


Portfolio Product Mix (Average)
GNMA		3	%		4	%		5	%		10	%		8	%
FNMA/FHLMC		51	%		58	%		64	%		63	%		64	%
Private		45	%		37	%		30	%		24	%		25	%

Sub-Total		99	%		99	%		99	%		97	%		97	%
Warehouse		1	%		1	%		1	%		3	%		3	%

Total		100	%		100	%		100	%		100	%		100	%


Other Portfolio Statistics
Net Service Fees — Annualized (bps)		21			25			22			25			27
Total Service Fees — Annualized (bps)		23			28			25			27			29

Ancillary Income per Loan (Annualized)	$	65.07		$	67.77		$	53.20		$	65.65		$	59.59			(4	)%		9	%
Servicing Cost per Loan (Annualized)	$	82.15		$	79.80		$	62.45		$	61.22		$	56.39			3	%		46	%

Average Servicing Asset (millions)		395			632			1,002			973			1,019
Servicing Book Value (bps)		64			98			124			102			98

90+ Delinquency Rate, excluding foreclosures		6.14	%		3.47	%		2.58	%		2.08	%		1.73	%

Change in MSR Asset / Average Servicing Asset		(51	)%		(105	)%		(13	)%		8	%		5	%
Run-Off Rate — Annualized		23	%		10	%		10	%		14	%		18	%


NM — Not meaningful

*		Amount is less than one percent.

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


CORPORATE Quarterly, Unaudited


																1Q09 Change vs.
(Thousands)	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08

Income Statement
Net interest income/(expense)	$	26,813		$	22,502		$	15,083		$	15,005		$	3,681			19	%		628	%
Net interest expense from deferred compensation		(526	)		(554	)		(366	)		(143	)		(121	)		5	%		(335	)%

Total net interest income/(expense)		26,287			21,948			14,717			14,862			3,560			20	%		638	%

Noninterest income		1,392			3,729			4,041			5,512			5			(63	)%	NM
Noninterest income from deferred compensation		(2,743	)		(12,531	)		(5,145	)		1,325			(6,550	)		78	%		58	%

Total noninterest income		(1,351	)		(8,802	)		(1,104	)		6,837			(6,545	)		85	%		79	%
Securities gains/(losses), net		(2	)		1,346			(210	)		(972	)		65,946		NM			NM

Total revenue		24,934			14,492			13,403			20,727			62,961			72	%		(60	)%

Noninterest expense		16,453			12,734			43,760			30,066			(755	)		29	%	NM
Deferred compensation expense		(2,895	)		(14,603	)		(7,455	)		1,820			(8,077	)		80	%		64	%

Total noninterest expense		13,558			(1,869	)		36,305			31,886			(8,832	)	NM			NM

Pretax income/(loss)	$	11,376		$	16,361		$	(22,902	)	$	(11,159	)	$	71,793			(30	)%		(84	)%


Average Balance Sheet (millions)
Total earning assets		3,489			3,329			2,835			2,974			3,001			5	%		16	%
Net interest margin		3.06	%		2.62	%		2.07	%		2.01	%		.48	%


NM — Not meaningful

*		Amount is less than one percent.

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


CAPITAL HIGHLIGHTS Quarterly, Unaudited


																1Q09 Change vs.
(Dollars in millions, except per share amounts)	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08

Tier 1 Capital (a)	$	3,709.6		$	3,784.1		$	2,934.0		$	3,034.7		$	2,443.9			(2	)%		52	%
Tier 2 Capital (a)		1,295.3			1,299.5			1,313.7			1,341.7			1,421.0				*		(9	)%

Total Capital (a)	$	5,004.9		$	5,083.6		$	4,247.7		$	4,376.4		$	3,864.9			(2	)%		29	%


Risk-Adjusted Assets (a)	$	24,762.1		$	25,185.4		$	26,427.2		$	28,884.7		$	29,709.3			(2	)%		(17	)%

Tier 1 Ratio (a)		14.98	%		15.03	%		11.10	%		10.51	%		8.23	%
Tier 2 Ratio (a)		5.23			5.15			4.97			4.64			4.78

Total Capital Ratio (a)		20.21	%		20.18	%		16.07	%		15.15	%		13.01	%


Leverage Ratio (a)		12.22	%		12.22	%		8.84	%		8.45	%		6.62	%
Shareholders’ Equity/Assets Ratio (b)		11.24			11.52			8.76			8.42			6.46
Tangible Common Equity/RWA (a)		8.61			8.80			8.78			8.45			6.17
Tangible Common Equity/Tangible Assets		7.07			7.34			7.18			6.96			5.04

Tangible Book Value (c)	$	10.35		$	10.72		$	11.09		$	11.65		$	13.67
Book Value per Share (c)		11.46			11.85			12.23			12.79			15.46


NM — Not meaningful

*		Amount is less than one percent.

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

(a)		Current quarter is an estimate.

(b)		Calculated on period-end balances.

(c)		Shares restated for stock dividends paid through April 1, 2009.


ASSET QUALITY: CONSOLIDATED Quarterly, Unaudited


																1Q09 Change vs.
(Thousands)	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08

Allowance for Loan Losses Walk-Forward
Beginning Reserve	$	849,210		$	760,456		$	575,149		$	483,203		$	342,341			12	%		148	%
Provision		300,000			280,000			340,000			220,000			240,000			7	%		25	%
Divestitures/acquisitions/transfers		—			—			—			(382	)		—		NM			NM
Charge-offs		(217,161	)		(199,075	)		(160,200	)		(131,385	)		(101,756	)		9	%		113	%
Recoveries		8,883			7,829			5,507			3,713			2,618			13	%		239	%

Ending Balance	$	940,932		$	849,210		$	760,456		$	575,149		$	483,203			11	%		95	%

Reserve for off-balance sheet commitments		19,511			18,752			19,109			22,303			11,786			4	%		66	%
Total allowance for loan losses plus reserve	$	960,443		$	867,962		$	779,565		$	597,452		$	494,989			11	%		94	%


Allowance for Loan Losses
Regional Banking	$	348,435		$	311,399		$	269,397		$	240,507		$	184,472			12	%		89	%
Capital Markets		72,001			63,554			63,654			42,745			24,338			13	%		196	%
National Specialty Lending		495,936			446,254			420,220			287,212			273,127			11	%		82	%
Mortgage Banking		24,560			28,003			7,185			4,685			1,266			(12	)%	NM

Total allowance for loan losses	$	940,932		$	849,210		$	760,456		$	575,149		$	483,203			11	%		95	%


Non-Performing Assets
Regional Banking
Nonperforming loans	$	192,796		$	163,933		$	133,138		$	115,264		$	81,244			18	%		137	%
Foreclosed real estate		31,305			31,665			32,078			37,594			38,019			(1	)%		(18	)%

Total Regional Banking		224,101			195,598			165,216			152,858			119,263			15	%		88	%

Capital Markets
Nonperforming loans		40,383			27,339			27,284			41,527			13,030			48	%		210	%
Foreclosed real estate		641			600			600			600			600			7	%		7	%

Total Capital Markets		41,024			27,939			27,884			42,127			13,630			47	%		201	%

National Specialty Lending
Nonperforming loans		845,964			834,042			718,624			582,523			433,285			1	%		95	%
Foreclosed real estate		64,586			52,725			57,251			45,384			29,680			22	%		118	%

Total National Specialty Lending		910,550			886,767			775,875			627,907			462,965			3	%		97	%

Mortgage Banking
Nonperforming loans — including held for sale (a)		53,569			28,335			20,930			30,704			9,693			89	%		453	%
Foreclosed real estate		22,514			19,318			25,589			22,542			15,373			17	%		46	%

Total Mortgage Banking		76,083			47,653			46,519			53,246			25,066			60	%		204	%

Total nonperforming assets	$	1,251,758		$	1,157,957		$	1,015,494		$	876,138		$	620,924			8	%		102	%


Net Charge-Offs
Regional Banking	$	60,791		$	63,822		$	29,310		$	33,337		$	29,942			(5	)%		103	%
Capital Markets		5,563			8,207			17,543			114			4,215			(32	)%		32	%
National Specialty Lending		138,889			118,017			107,462			93,640			64,906			18	%		114	%
Mortgage Banking		3,035			1,200			378			581			75			153	%	NM

Total net charge-offs	$	208,278		$	191,246		$	154,693		$	127,672		$	99,138			9	%		110	%


Consolidated Key Ratios (b)
NPL %		5.44	%		4.91	%		4.12	%		3.42	%		2.41	%
NPA %		5.98			5.38			4.63			3.88			2.78
Net charge-offs %		3.97			3.61			2.84			2.35			1.81
Allowance / Loans		4.57			3.99			3.52			2.59			2.20
Allowance to loans excluding insured loans		4.69			4.11			3.63			2.68			2.26
Allowance / NPL		.84x			.81x			.85x			.76x			.92x
Allowance / NPA		.76x			.74x			.76x			.66x			.79x
Allowance / Charge-offs		1.13x			1.11x			1.23x			1.13x			1.22x


Other
Loans past due 90 days or more (c)(e)	$	250,801		$	133,067		$	119,588		$	157,277		$	300,185			88	%		(16	)%
Guaranteed portion (c)		40,205			42,478			50,419			64,696			223,572			(5	)%		(82	)%
Foreclosed real estate from GNMA loans		13,607			21,230			35,943			35,737			22,346			(36	)%		(39	)%

Period-end loans, net of unearned income (millions)	$	20,572		$	21,278		$	21,602		$	22,225		$	21,932			(3	)%		(6	)%
Insured loans (millions)		528			591			652			739			809			(11	)%		(35	)%

Total loans excluding insured loans (millions)	$	20,044		$	20,687		$	20,950		$	21,486		$	21,123			(3	)%		(5	)%

Off-balance sheet commitments (millions) (d)	$	6,077		$	6,442		$	6,746		$	6,444		$	6,826			(6	)%		(11	)%


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

NM — Not meaningful

*		Amount is less than one percent

(a)		1Q 2009 includes $39,057 of loans held-to-maturity.

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

(c)		Includes loans held for sale.

(d)		Amount of off-balance sheet commitments for which a reserve has been provided.

(e)		Includes some administrative delinquencies resolved subsequent to quarter end.


ASSET QUALITY: CONSOLIDATED Quarterly, Unaudited


																1Q09 Change vs.
	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08

Key Portfolio Details
Commercial (C&I & Other)
Period-end loans ($ millions)	$	7,676		$	7,806		$	7,618		$	7,721		$	7,225			(2	)%		6	%

30+ Delinq. %		1.53	%		.53	%		1.15	%		1.46	%		.93	%
NPL %		1.35			1.03			1.05			1.20			.64
Charge-offs % (qtr. annualized)		1.55			2.21			1.64			.84			.83

Allowance / Loans %		2.97	%		2.46	%		2.29	%		1.90	%		1.59	%
Allowance / Charge-offs		1.89x			1.16x			1.41x			2.46x			2.31x


Income CRE (Income-producing Commercial Real Estate)
Period-end loans ($ millions)	$	1,938		$	1,988		$	2,038		$	2,039		$	1,982			(3	)%		(2	)%

30+ Delinq. %		4.23	%		2.42	%		3.47	%		1.43	%		.57	%
NPL %		6.30			5.02			3.72			3.54			2.01
Charge-offs % (qtr. annualized)		3.36			2.73			.24			.63			1.94

Allowance / Loans %		5.21	%		4.71	%		3.73	%		2.89	%		2.47	%
Allowance / Charge-offs		1.53x			1.70x			15.48x			4.82x			1.28x


Residential CRE (Homebuilder and Condominium Construction)
Period-end loans ($ millions)	$	1,133		$	1,288		$	1,480		$	1,739		$	1,980			(12	)%		(43	)%

30+ Delinq. %		10.43	%		3.74	%		5.73	%		6.36	%		2.73	%
NPL %		36.34			30.71			23.64			16.65			12.07
Charge-offs % (qtr. annualized)		18.10			15.79			11.95			6.23			5.93

Allowance / Loans %		8.59	%		8.25	%		7.55	%		5.26	%		3.64	%
Allowance / Charge-offs		.44x			.49x			.58x			.76x			.58x


Consumer Real Estate (Home Equity Installment and HELOC)
Period-end loans ($ millions)	$	7,609		$	7,749		$	7,830		$	7,909		$	7,964			(2	)%		(4	)%

30+ Delinq. %		2.01	%		1.97	%		1.49	%		1.27	%		1.55	%
NPL %		.07			.07			.07			.09			.11
Charge-offs % (qtr. annualized)		2.38			1.81			1.41			1.78			.93

Allowance / Loans %		3.06	%		2.35	%		1.58	%		1.70	%		1.19	%
Allowance / Charge-offs		1.27x			1.29x			1.12x			0.95x			1.28x


OTC (Consumer Residential Construction Loans)
Period-end loans ($ millions)	$	773		$	981		$	1,202		$	1,522		$	1,815			(21	)%		(57	)%

30+ Delinq. %		2.82	%		4.43	%		4.92	%		2.69	%		2.67	%
NPL %		55.19			43.03			28.94			17.61			11.01
Charge-offs % (qtr. annualized)		21.10			14.80			12.29			9.90			4.63

Allowance / Loans %		23.74	%		20.44	%		20.16	%		7.75	%		6.49	%
Allowance / Charge-offs		0.99x			1.25x			1.46x			0.78x			1.33x


Permanent Mortgage
Period-end loans ($ millions)	$	1,109		$	1,127		$	1,080		$	1,004		$	647			(2	)%		71	%

30+ Delinq. %		10.11	%		6.94	%		7.38	%		6.36	%		7.73	%
NPL %		4.44			3.73			2.94			3.04			–
Charge-offs % (qtr. annualized)		3.47			.57			.22			1.15			.41

Allowance / Loans %		7.06	%		4.76	%		1.17	%		1.24	%		.20	%
Allowance / Charge-offs		2.04x			8.59x			5.48x			1.12x			1.75x


Credit Card and Other
Period-end loans ($ millions)	$	335		$	339		$	354		$	291		$	319			(1	)%		5	%

30+ Delinq. %		2.33	%		2.47	%		2.08	%		2.11	%		2.37	%
NPL %		–			–			–			–			–
Charge-offs % (qtr. annualized)		4.81	%		5.09	%		5.30	%		3.29	%		5.14	%

Allowance / Loans %		6.04	%		6.35	%		5.52	%		5.43	%		4.58	%
Allowance / Charge-offs		1.26x			1.24x			1.06x			1.45x			.89x


NM — Not meaningful

*		Amount is less than one percent

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


Analysis of FAS 114 Loans, ORE, & NPL Rollforward Unaudited

($ in millions)

Commercial Portfolio
Reserves


	Reserves		Balances		%

FAS 114 Impaired Loans with Reserves	$	5.8	$	21.4		26.91	%
FAS 114 Impaired Loans without Reserves		—		504.9		—
All Other Loans		420.3		10,242.6		4.10	%

Total	$	426.1	$	10,768.9		3.96	%

NRV Assessment of Commercial FAS 114 Impaired Assets with no Reserves


											Book Bal /
	#		Appraised Value		Legal Balance		Cumulative C/O		Book Balance		Appraised Val

FAS 114 Relationships with no Reserves		186		$837.2		$740.5		$235.7		$504.8		60.3	%

ORE Inventory Rollforward


	1Q09			4Q08			3Q08			2Q08

Beginning ORE	$	104.3		$	115.5		$	106.1		$	83.7
- Dispositions		(6.6	)		(33.0	)		(28.2	)		(12.9	)
+ Additions		21.3			21.8			37.6			35.3

Ending ORE	$	119.0		$	104.3		$	115.5		$	106.1

NPL Rollforward (a)


	1Q09			4Q08			3Q08			2Q08

Beginning NPLs	$	998		$	854		$	722		$	501
+ Additions		316			393			356			365
+ Principal Increase		13			7			4			3
- Payments		(81	)		(82	)		(75	)		(36	)
- Charge-Offs		(149	)		(150	)		(122	)		(86	)
- Transfer to ORE		(33	)		(18	)		(30	)		(24	)
- Upgrade to Accrual		(1	)		(6	)		(1	)		(1	)

Ending NPLs	$	1,064		$	998		$	854		$	722


		(a) Includes Commercial & One Time Close Portfolios only


ASSET QUALITY: REGIONAL BANKING Quarterly, Unaudited


																1Q09 Change vs.
	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08

Total Regional Banking
Period-end loans ($ millions)	$	10,727		$	11,017		$	11,008		$	11,037		$	10,803			(3	)%		(1	)%

30+ Delinq. %		1.87	%		1.07	%		1.45	%		1.50	%		1.23	%
NPL %		1.80			1.49			1.21			1.04			.75
Charge-offs % (qtr. annualized)		2.23			2.34			1.07			1.23			1.16

Allowance / Loans %		3.25	%		2.83	%		2.45	%		2.18	%		1.71	%
Allowance / Charge-offs		1.43	x		1.22	x		2.30	x		1.80	x		1.54	x


Key Portfolio Details

Commercial (C&I & Other)
Period-end loans ($ millions)	$	5,855		$	6,132		$	6,064		$	6,107		$	6,134			(5	)%		(5	)%

30+ Delinq. %		1.56	%		.54	%		1.37	%		1.40	%		.98	%
NPL %		1.33			1.18			1.09			.92			.62
Charge-offs % (qtr. annualized)		1.96			2.36			.96			1.03			.75

Allowance / Loans %		2.93	%		2.34	%		2.10	%		1.92	%		1.59	%
Allowance / Charge-offs		1.46	x		1.01	x		2.21	x		1.98	x		2.29	x


Income CRE (Income-producing Commercial Real Estate)
Period-end loans ($ millions)	$	1,438		$	1,462		$	1,504		$	1,484		$	1,365			(2	)%		5	%

30+ Delinq. %		2.82	%		1.25	%		1.21	%		.99	%		.52	%
NPL %		3.57			2.31			1.73			1.60			1.42
Charge-offs % (qtr. annualized)		2.57			1.50			.07			.46			2.57

Allowance / Loans %		5.07	%		4.70	%		3.45	%		2.80	%		2.35	%
Allowance / Charge-offs		1.94	x		3.09	x		49.80	x		6.68	x		.93	x


Residential CRE (Homebuilder and Condominium Construction)
Period-end loans ($ millions)	$	396		$	435		$	473		$	528		$	526			(9	)%		(25	)%

30+ Delinq. %		6.61	%		4.97	%		3.94	%		5.43	%		2.61	%
NPL %		16.10			13.27			8.71			6.68			4.68
Charge-offs % (qtr. annualized)		8.81			9.97			4.55			2.02			2.30

Allowance / Loans %		10.19	%		8.54	%		8.52	%		5.61	%		3.92	%
Allowance / Charge-offs		1.09	x		.83	x		1.75	x		2.93	x		1.65	x


Consumer Real Estate (Home Equity Installment and HELOC)
Period-end loans ($ millions)	$	2,696		$	2,644		$	2,606		$	2,614		$	2,486			2	%		8	%

30+ Delinq. %		1.32	%		1.41	%		1.32	%		1.22	%		1.83	%
Charge-offs % (qtr. annualized)		1.45			1.23			.81			1.50			.76

Allowance / Loans %		1.79	%		1.70	%		1.26	%		1.36	%		.70	%
Allowance / Charge-offs		1.24	x		1.40	x		1.57	x		.90	x		.92	x


Credit Card, Permanent Mortgage, and Other
Period-end loans ($ millions)	$	342		$	345		$	361		$	304		$	293			(1	)%		17	%

30+ Delinq. %		1.83	%		2.09	%		1.66	%		1.71	%		1.89	%
Charge-offs % (qtr. annualized)		3.48			4.04			4.69			2.37			4.69

Allowance / Loans %		4.56	%		5.07	%		5.31	%		5.55	%		4.43	%
Allowance / Charge-offs		1.31	x		1.25	x		1.16	x		2.34	x		.95	x


NM — Not meaningful

*		Amount is less than one percent

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


ASSET QUALITY: NATIONAL SPECIALTY LENDING Quarterly, Unaudited


																1Q09 Change vs.
	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08

Total National Specialty Lending
Period-end loans ($ millions)	$	7,143		$	7,668		$	8,058		$	8,622		$	9,114			(7	)%		(22	)%

30+ Delinq. %		4.49	%		3.46	%		3.67	%		2.67	%		1.85	%
NPL %		11.84			10.88			8.92			6.76			4.75
Charge-offs % (qtr. annualized)		7.47			6.00			5.14			4.18			2.80

Allowance / Loans %		6.94	%		5.82	%		5.21	%		3.33	%		3.00	%
Allowance / Charge-offs		.89	x		.95	x		.98	x		.77	x		1.05	x


Key Portfolio Details

Income CRE (Income-producing Commercial Real Estate)
Period-end loans ($ millions)	$	341		$	356		$	378		$	395		$	428			(4	)%		(20	)%

30+ Delinq. %		9.03	%		7.51	%		13.37	%		.80	%		.55	%
NPL %		20.52			18.22			12.77			12.15			4.65
Charge-offs % (qtr. annualized)		7.66			8.74			.91			1.43			.87

Allowance / Loans %		5.23	%		4.67	%		4.28	%		2.63	%		3.07	%
Allowance / Charge-offs		.67	x		.50	x		4.53	x		1.72	x		3.67	x


Residential CRE (Homebuilder and Condominium Construction)
Period-end loans ($ millions)	$	682		$	780		$	927		$	1,133		$	1,363			(12	)%		(50	)%

30+ Delinq. %		12.47	%		3.19	%		5.05	%		6.62	%		2.78	%
NPL %		48.91			40.97			32.03			22.02			15.36
Charge-offs % (qtr. annualized)		22.50			19.26			16.06			8.18			7.45

Allowance / Loans %		7.55	%		8.03	%		6.79	%		4.90	%		3.53	%
Allowance / Charge-offs		.31	x		.38	x		.38	x		.50	x		.46	x


Consumer Real Estate (Home Equity Installment and HELOC)
Period-end loans ($ millions)	$	4,913		$	5,105		$	5,223		$	5,295		$	5,478			(4	)%		(10	)%

30+ Delinq. %		2.38	%		2.26	%		1.57	%		1.30	%		1.44	%
NPL %		.10			.10			.11			.13			.12
Charge-offs % (qtr. annualized)		2.88			2.10			1.70			1.91			1.02

Allowance / Loans %		3.76	%		2.68	%		1.74	%		1.84	%		1.43	%
Allowance / Charge-offs		1.28	x		1.26	x		1.01	x		.96	x		1.41	x


OTC (Consumer Residential Construction Loans)
Period-end loans ($ millions)	$	773		$	981		$	1,202		$	1,522		$	1,815			(21	)%		(57	)%

30+ Delinq. %		2.82	%		4.43	%		4.92	%		2.69	%		2.67	%
NPL %		55.19			43.03			28.94			17.61			11.01
Charge-offs % (qtr. annualized)		21.10			14.80			12.29			9.90			4.63

Allowance / Loans %		23.74	%		20.44	%		20.16	%		7.75	%		6.49	%
Allowance / Charge-offs		0.99	x		1.25	x		1.46	x		.78	x		1.33	x


Permanent Mortgage
Period-end loans ($ millions)	$	407		$	417		$	297		$	249			n/a			(2	)%	NM

30+ Delinq. %		15.72	%		12.60	%		18.39	%		16.43	%		n/a
NPL %		2.50			5.32			6.71			7.14			n/a
Charge-offs % (qtr. annualized)		.06			—			—			—			n/a

Allowance / Loans %		13.14	%		6.13	%		1.84	%		2.38	%		n/a
Allowance / Charge-offs		8.14	x	NM				—			—			n/a


Other Consumer
Period-end loans ($ millions)	$	26		$	29		$	30		$	28		$	29			(10	)%		(11	)%

30+ Delinq. %		8.56	%		8.14	%		6.65	%		6.39	%		6.90	%
NPL %		—			—			—			—			—
Charge-offs % (qtr. annualized)		15.27	%		11.31	%		11.66	%		13.26			9.13

Allowance / Loans %		18.94	%		13.87	%		7.84	%		4.06	%		5.46	%
Allowance / Charge-offs		1.16	x		1.22	x		.66	x		.31	x		.60	x


NM — Not meaningful

*		Amount is less than one percent

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


ASSET QUALITY HIGHLIGHTS: KEY PORTFOLIOS — COMMERCIAL Unaudited

C&I Portfolio: $7.7 Billion (37% of Total Loans)

	-	Impacted by deterioration in economic conditions and impacts of housing market
	-	Diverse and granular portfolio
	-	Mostly relationship customers in TN and regional middle market lending efforts

Homebuilder Portfolio: $1.1 Billion (6% of Total Loans)

	-		Loans to residential builders and developers
	-		Performance under pressure from housing market (oversupply & lack of mortgage availability)
	-		Most severe market conditions in Florida, California, Virginia/DC , Arizona, Maryland and Colorado
	-		Condominium construction balances small ($158.6 million) but individual commitments tend to be larger
	-		Managing existing relationships (shrinking business into 2009)
	-		Devoting additional resources to manage problem loans
	-		In early 2008 ceased originations for national CRE lending: wind-down portfolio


Top 10 States
	% OS			% NPL

TN		23.52	%		14.36	%
WA		10.34	%		22.40	%
FL		9.81	%		59.37	%
CA		6.57	%		47.30	%
NC		6.36	%		19.09	%
VA		4.62	%		46.50	%
TX		4.40	%		16.37	%
CO		3.94	%		52.69	%
MD		3.65	%		47.49	%
AZ		3.43	%		52.89	%

As of 3/31/09

Income CRE Portfolio: $1.9 Billion (9% of Total Loans)

	-	Traditional commercial real estate construction and mini-permanent loans
	-	Three-Fourths managed by Regional Banking segment (approx)
	-	Less than 18% in national CRE business: wind-down portfolio (approx)
	-	Performance showing spillover impact from housing market


Top 10 States
	% OS			% NPL

TN		43.19	%		2.35	%
NC		8.71	%		9.95	%
FL		7.90	%		31.54	%
GA		6.22	%		0.43	%
WA		3.83	%		0.20	%
TX		3.80	%		0.00	%
MS		3.72	%		0.02	%
AZ		2.84	%		10.08	%
SC		2.60	%		0.00	%
CA		2.15	%		17.03	%

As of 3/31/09


ASSET QUALITY HIGHLIGHTS: KEY PORTFOLIOS — CONSUMER Unaudited

Consumer Real Estate (primarily Home Equity) Portfolio: $7.6 Billion (37% of Total Loans)

	- Performance continues to show deterioration in Q1 primarily related to areas with significant home price depreciation.

	- Geographically diverse

- Top States (TN= 33%, CA = 15%, VA = 4%, WA = 4%, MD = 4%,
FL = 3%, GA = 3%)

- Strong borrower quality

- 735 avg. portfolio origination FICO; 730 avg. portfolio FICO (refreshed)

- Good collateral position

	- High LTV loans managed through whole loan insurance

	- 28% 1st lien and 72% second lien

	- 86% of uninsured portfolio <90 CLTV

	- 14% of uninsured portfolio is HLTV, 65% of which (or 8.6%) have FICO >700

	- No longer originating loans >89.9% CLTV

	- Good borrower capacity (37% avg. DTI)

	- Primarily retail-sourced (85% retail)

	- Mix of older vintage loans

- 50% originated prior to 2006


Top 10 States
	% OS			Del. %			C/O %

TN		33	%		1.24	%		1.06	%
CA		15	%		2.59	%		3.51	%
VA		4	%		1.98	%		3.10	%
WA		4	%		1.57	%		2.53	%
MD		4	%		1.91	%		2.56	%
FL		3	%		4.03	%		5.38	%
GA		3	%		1.81	%		3.77	%
AZ		3	%		4.94	%		7.13	%
PA		2	%		1.26	%		1.97	%
NJ		2	%		1.92	%		1.43	%

As of 3/31/09


Retail vs. Wholesale Originations
	% OS			Del. %			C/O %

Retail		85.50	%		1.69	%		2.05	%
Wholesale		12.18	%		4.36	%		5.50	%
Other		2.31	%		1.77	%		2.65	%

As of 3/31/09


Portfolio Breakdown by LTV and FICO
	<=80%			80% - 90%			>90%
>=740		32.3	%		14.2	%		5.0	%
720-739		7.1	%		4.6	%		1.9	%
700-719		7.0	%		4.3	%		1.8	%
660-699		7.8	%		4.0	%		3.1	%
620-659		2.5	%		1.4	%		1.3	%
<620		.8	%		.3	%		.4	%
* excludes whole loan insurance

As of 3/31/09


	Balance			Origination Characteristics														QTD			YTD
Vintage	%			CLTV			FICO		% Broker *			% TN			% 1st lien			NCO’s %			NCO’s %
pre-2002		6	%		76	%		717		17	%		50	%		37	%		1.96	%		1.96	%
2003		9	%		73	%		731		14	%		38	%		47	%		1.33	%		1.33	%
2004		14	%		79	%		729		22	%		26	%		29	%		2.08	%		2.08	%
2005		21	%		80	%		732		20	%		20	%		17	%		3.13	%		3.13	%
2006		18	%		77	%		735		6	%		25	%		18	%		3.51	%		3.51	%
2007		20	%		79	%		741		15	%		27	%		19	%		2.50	%		2.50	%
2008		10	%		76	%		750		10	%		70	%		52	%		1.73	%		1.73	%
2009		2	%		71	%		759		2	%		84	%		70	%		.00	%		.00	%

Total		100	%		78	%		735		15	%		33	%		27	%		2.38	%		2.38	%
* Correspondent and Wholesale

One-Time Close (OTC) Portfolio: $773 Million (4% of Total Loans)

	-		Construction-to-perm loans with short duration

	-		Performance under pressure from housing market, borrower stress

			and lack of product salability in the secondary market

	-		Actively identifying and remediating problem accounts

	-		Devoting additional resources to manage problem loans

In early 2008 ceased originations for national OTC lending: wind-down portfolio


Top 10 States
	% OS			% NPL

CA		30	%		55	%
UT		10	%		76	%
TX		10	%		40	%
FL		7	%		97	%
WA		7	%		50	%
ID		6	%		86	%
AZ		5	%		72	%
OR		4	%		34	%
MD		2	%		69	%
NC		2	%		61	%

As of 3/31/09


ASSET QUALITY: PROCESS HIGHLIGHTS


Product		Current Process

Commercial Loans (Real Estate / C&I)

Risk Grading

Reserves are established using historical loss factors by grade level. Relationship managers risk rate each loan using grades that reflect both the probability of default and estimated loss in the event of default. Loans with emerging weaknesses receive increased oversight through our Watch List process.

Portfolio Reviews are conducted regularly to provide oversight of risk grading decisions for larger credits.

Watch List Process

For new Watch List loans, senior credit management reviews risk grade appropriateness and action plans. After initial identification, relationship managers prepare regular updates for review and discussion by more senior business line and credit officers. This oversight is intended to bring consistent grading and allow timely identification of loans that need to be further downgraded or placed on non-accrual status.

Classified & Non-Accruals

When a loan becomes classified, the asset generally transfers to the specialists in our Loan Rehab and Recovery group where the accounts receive more detailed monitoring; at this time, new appraisals are typically ordered for real estate collateral dependent credits.

Loans are placed on non-accrual status if it becomes evident that full collection of principal and interest is at risk or if the loans become 90 days or more past due.

Impairment Assessment

Generally, classified non-accrual loans over $1 million are deemed to be impaired in accordance with SFAS 114 and are assessed for impairment measurement. For impaired assets viewed as collateral dependent, fair value estimates are obtained from a recently received and reviewed appraisal. Appraised values are adjusted down for costs associated with asset disposal and for our estimate of any further deterioration in values since the most recent appraisal. Upon the determination of impairment, we charge off the full difference between book value and our best estimate of the asset’s net realizable value.

One-Time Close (OTC) Loans

For OTC real estate construction loans, reserve levels are established based on portfolio modeling and monthly portfolio reviews conducted with business line managers and credit officers. The inherent risk in credits is examined and evaluated based on factors such as draw inactivity and borrower conditions, often recognizing problems prior to delinquency. In addition, OTC loans that reach 90 days past due are placed on non-accrual. A new appraisal is ordered for loans that reach 90 days past due or are classified as substandard during the monthly portfolio review. Loans are initially written down to current appraised value. Loans are then assessed for charge down again when they reach 180 days past due, and again when they are taken into OREO.

Home Equity Loans & Lines

For home equity loans and lines, reserve levels are established through the use of several models that look at historical losses, cumulative vintage performance, and roll rates. Loans are classified substandard at 90 days delinquent. Our collateral position is assessed prior to the asset becoming 180 days delinquent. If the value does not support foreclosure, balances are charged-off and other avenues of recovery are pursued. If the value supports foreclosure, the loan is charged down to net realizable value and is placed on non-accrual status. When collateral is taken to OREO, the asset is assessed for further write down to appraised value.


GLOSSARY OF TERMS

Appraisal Fees: A fee charged to the borrower for the cost of appraising a property.

Credit Report Fee: A fee charged to the borrower for the cost of obtaining the borrower’s credit report.

FAS 91 Fee Deferral: The timing difference between collecting and recognizing origination fees on a loan not carried at elected fair value. For loans held for sale not carried at elected fair value, origination fees are recognized at the time the loan is sold, not at the time the loan is originated.

FAS 91 Reclassification: The reclassification of the cost of originating mortgage warehouse loans, not carried at elected fair value, sold during the period.

FAS 114 Loans: Commercial loans over $1 million that are not expected to pay all contractually due principal and interest and consumer loans that have experienced a troubled debt restructuring. These loans are generally written down to an estimate of collateral value less cost to sell.

Final Inspection Fee: A fee charged to the borrower to inspect a property.

Lower of Cost or Market (LOCOM): A method of accounting for certain assets by recording them at the lower of their historical cost or their current market value.

Origination Fees: A fee charged to the borrower by the lender to originate a loan. Usually stated as a percentage of the face value of the loan.

Tangible Equity/RWA: Shareholders’ equity excluding intangible assets and unrealized gains/losses on available for sale securities and cash flow hedges divided by risk weighted assets.

Asset Quality — Consolidated Key Ratios

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

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

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

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

Allowance to loans excluding insured loans: Ratio is allowance for loan losses to total period end loans excluding insured 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.

Significant Strategic Progress in First Quarter 2009 Attractive Growth Opportunities Industry-Leading Strengths Rate of NPL and NPA growth slowed to 8% Charge-offs at expected level of $208mm in 1Q09 Increased reserves/loans to 4.57% Retired $600mm of debt in 1Q09 Core deposits up ~$500mm or 4% linked-quarter Sources of excess liquidity estimated at $7B Ability To Execute Tier 1 ratio steady at 15.0%1 in 1Q09 TCE/TA at 7.1%1 in 1Q09 (~20bps impact from $900mm of excess Fed balances) TCE + Reserves / RWA improved to 12.6%1 Core deposit growth of 3% linked-quarter Increased consumer and commercial deposits, including net checking account growth NIM nearing cyclical low Continued attention to efficiency & productivity Proactive on Asset Quality Strong Capital Position Solid Liquidity Position Strong Regional Banking Franchise Focused Capital Markets Business 2nd straight record quarter with $240mm revenues Strong fixed income distribution platform with diverse product offering More than 6,000 depositories and total return clients Positioned to benefit from current market conditions 1Current quarter is estimate Total assets stable at $31.2B (higher Fed balances offset other declines); RWA declined by $0.4B Reduced national lending portfolios by $0.5B Reduced mortgage servicing by ~$4B; additional $14B sale completed on April 1 Reducing Balance Sheet Risk

Home Equity Portfolio 30+ Delinquency: National vs. Regional1 Net-Charge Offs2 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 Regional Banking 0.52 0.004 0.0064 0.0076 0.015 0.0081 0.0123 0.0145 National Specialty 0.74 0.0034 0.0062 0.0102 0.0191 0.017 0.021 0.0288 <=2002 2003 2004 2005 2006 2007 2008 2009 O/S % 0.059 0.091 0.138 0.214 0.176 0.202 0.097 0.023 1Q09 NCOs % 0.047 0.049 0.116 0.269 0.249 0.203 0.068 0 WA Age 91 69 56 44 33 21 10 1 Vintage Mix 1Q08 2Q08 3Q08 4Q08 1Q09 Period End Balance 5385.04 5263.97 5140.65 5044.12 4856.63 Constant Pre-Payment Rate (right axis) 0.16 0.15 0.11 0.09 0.15 National Portfolio Run-Off 30 Day Del. 1/8/2008 2/8/2008 3/8/2008 4/8/2008 5/8/2008 6/8/2008 7/8/2008 8/8/2008 9/8/2008 10/8/2008 11/8/2008 12/8/2008 1/1/2009 2/1/2009 3/1/2009 Regional Banking 0.0154 0.016 0.0164 0.0145 0.0131 0.0112 0.011 0.0121 0.0123 0.0127 0.0139 0.0133 0.0125 0.0132 0.0125 National Specialty 0.0149 0.0149 0.0145 0.0137 0.0134 0.0131 0.0134 0.0147 0.016 0.0175 0.0214 0.0229 0.0233 0.0241 0.0241 Industry 0.0328 0.0349 0.0347 0.0356 0.0368 0.0382 0.0394 0.0417 0.0431 0.0442 0.0486 Industry = 13.00% 1Source: McDash industry data as of February 2009. FHN data excludes FHB. 2Net Charge-Offs are annualized 91 Weighted Average Age in Months 69 56 44 33 21 10

10 Residential CRE and Income CRE Portfolios 1Q08 2Q08 3Q08 4Q08 1Q09 Regional Bank 0.526 0.528 0.473 0.435 0.396 National 1.4 1.1 0.927 0.78 0.682 NPLs as % of portfolio 0.1207 0.1665 0.2364 0.3071 0.3634 Res CRE 1Q08 2Q08 3Q08 4Q08 1Q09 Regional Bank 1.365 1.484 1.504 1.462 1.438 National 0.428 0.395 0.378 0.356 0.341 NPL as % of portfolio 0.0201 0.0354 0.0372 0.0502 0.063 Income CRE National balances down 12% in 1Q09, down 52% since announced wind-down National commitments down 12% or $125mm in 1Q09; down 61% or $1.4B since wind-down announced January 2008 Metrics continue deterioration due to market stress and wind-down nature of portfolio Reserves down $9mm in 1Q09 Reflects benefits of proactive problem loan identification as well as wind-down nature Majority of approximate $2B portfolio originated by Regional Banking (17% national segment) Diversified by product type and geography, no tenant concentration Stressed economic conditions driving deterioration in portfolio performance Reserve increase due to grade migration in 1Q09 Regional Bank National NPLs as % of portfolio

C&I Portfolio Performance Bank Exposure1 2Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 30+ Delq. 0.52 0.005 0.0093 0.0146 0.0115 0.0053 0.0153 Net Charge-Offs (Ann.) 0.74 0.002 0.0083 0.0084 0.0164 0.0221 0.0155 NPLs 0.0064 0.012 0.0105 0.0103 0.0135 Largely TN portfolio, diversified by industry Balances of $7.7B at 1Q09 NCOs at $30mm in 1Q09 Less than 4Q08's $41mm as expected Expect modest increase in quarterly rate throughout remainder of 2009 Ongoing, proactive reviews of portfolio continue in order to appropriately manage the portfolio in a stressed environment TRUPs and other bank related balances of ~$800mm at 1Q09 39 bank TRUPs with $8mm average size Solid banks overall: avg. Tier 1 ratio2 = 10.7%, avg. Leverage ratio2 = 8.8% 54% are TARP CPP participants2 Two elected interest deferral to date ($17.5mm total) Other BHC/BHC stock secured Graded individually quarterly with reserves adjusted as profile requires C&I Insurance TRUPs Bank TRUPs Other Bank Related Balances 7676 164.3 305.4 300.6 Total C&I $7.7B Insurance TRUPS $0.2B Bank TRUPS $0.3B Other Bank related balances $0.3B 1Outstanding balances as 3/31/09 2Measures are weighted averages by funded balances


By Income Statement Impact
(Thousands, rounded)	1Q09			4Q08			3Q08			2Q08			1Q08

Noninterest income
Mortgage banking	$	(1,100	)	$	—		$	(700	)	$	(9,300	)	$	(2,700	)
Losses on divestitures		—			(100	)		(17,500	)		(400	)		(1,000	)
Noninterest expense
Employee compensation, incentives, and benefits		2,700			600			10,700			5,700			7,400
Legal and professional fees		100			300			(100	)		1,100			3,100
Occupancy		—			(200	)		3,900			3,400			1,000
Equipment rentals, depreciation, and maintenance		—			—			100			4,200			—
All other expense		800			9,500			1,100			1,900			6,100

Total loss before income taxes	$	(4,700	)	$	(10,300	)	$	(33,900	)	$	(26,000	)	$	(21,300	)


ASSET QUALITY: MORTGAGE BANKING & CAPITAL MARKETS Quarterly, Unaudited