The following tables summarize FHN's available for sale ("AFS") securities on September 30, 2011 and 2010:


	On September 30, 2011
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities available for sale:
U.S. treasuries		$ 40,054		$ 135		$ -		$ 40,189
Government agency issued mortgage-backed securities ("MBS")		1,433,636		81,324		-		1,514,960
Government agency issued collateralized mortgage obligations ("CMO")		1,462,668		47,507		-		1,510,175
Other U.S. government agencies		17,033		898		-		17,931
States and municipalities		19,365		-		-		19,365
Equity^(a)		224,698		-		-		224,698
Other		511		17		-		528
Total securities available for sale ^(b)		$3,197,965		$ 129,881		$ -		$ 3,327,846

(a)	Includes restricted investments in FHLB-Cincinnati stock of $125.5 million and FRB stock of $66.1 million. The remainder is money market, venture capital, and cost method investments.

(b)

Includes $3.0 billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes. As of September 30, 2011, FHN had pledged $1.1 billion of the $3.0 billion pledged available for sale securities as collateral for securities sold under repurchase agreements.


	On September 30, 2010
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities available for sale:
U.S. treasuries		$68,252		$333		$ -			$68,585
Government agency issued MBS		945,290		54,758		(13	)		1,000,035
Government agency issued CMO		1,124,596		37,040		-			1,161,636
Other U.S. government agencies		95,891		8,691		-			104,582
States and municipalities		41,660		-		-			41,660
Equity ^(a)		234,056		355		-			234,411
Other		511		40		-			551
Total securities available for sale ^(b)		$2,510,256		$101,217		$ (13	)		$2,611,460

(a)	Includes restricted investments in FHLB-Cincinnati stock of $125.5 million and FRB stock of $66.2 million. The remainder is money market, venture capital, and cost method investments. Additionally, $9.4 million is restricted pursuant to reinsurance contract agreements.

(b)

Includes $2.3 billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes. As of September 30, 2010, FHN had pledged $1.1 billion of the $2.3 billion pledged available for sale securities as collateral for securities sold under repurchase agreements.

National banks chartered by the federal government are, by law, members of the Federal Reserve System. Each member bank is required to own stock in its regional Federal Reserve Bank ("FRB"). Given this requirement, Federal Reserve stock may not be sold, traded, or pledged as collateral for loans. Membership in the Federal Home Loan Bank ("FHLB") network requires ownership of capital stock. Member banks are entitled to borrow funds from the FHLB and are required to pledge mortgage loans as collateral. Investments in the FHLB are non-transferable and, generally, membership is maintained primarily to provide a source of liquidity as needed.

The amortized cost and fair value by contractual maturity for the available for sale securities portfolio on September 30, 2011 are provided below:

Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

The table below provides information on realized gross gains and realized gross losses from the sale of investment securities for the three and nine months ended September 30, 2011 and 2010:


	Three Months Ended September 30					Nine Months Ended September 30
(Dollars in thousands)	2011		2010			2011			2010
Gross gains on sales of securities ^(a)		$35,162		$35			$44,585			$231
Gross (losses) on sales of securities		-		-			(8,623	)		(1	)
Net gain/(loss) on sales of securities ^(b)		$35,162		$35			$35,962			$230
Venture capital investments ^(c)		-		(2,963	)		-			(4,801	)
Net other than temporary impairment ("OTTI") recorded ^(d)		-		-			-			(188	)
Total securities gain/(loss), net		$35,162		$(2,928	)		$35,962			$(4,759	)

(a)	Three and nine months ended September 30, 2011, include gain of $35.1 million related to the sale of Visa Class B shares.

(b)	Proceeds from sales for the three months ended September 30, 2011, were $35.2 million. Proceeds were not material in third quarter 2010. Proceeds were $.5 billion and $36.5 million for the nine months ended September 30, 2011 and 2010, respectively.

(c)	Generally includes write-offs and/or fair value adjustments related to venture capital investments.

(d)	OTTI recognized for the nine months ended September 30, 2010 is related to marketable equity securities.

There were no unrealized losses within the available for sale portfolio on September 30, 2011. The following table provides information on investments within the available for sale portfolio that have unrealized losses on September 30, 2010:

FHN has reviewed investment securities that are in unrealized loss positions in accordance with its accounting policy for OTTI and does not consider them other-than-temporarily impaired. FHN does not intend to sell the debt securities and it is more-likely-than-not that FHN will not be required to sell the securities prior to recovery. The decline in value is primarily attributable to interest rates and not credit losses. For equity securities, FHN has both the ability and intent to hold these securities for the time necessary to recover the amortized cost.