EX-99.1 2 a3q2020earningsrelease.htm EX-99.1 EARNINGS RELEASE
First Horizon National Corporation

First Horizon National Corp. Reports Third Quarter Net Income Available to Common of $523 Million
and EPS of $0.95
Results include $269 million pre-tax, or $0.60 per share, of notable items largely related to the IBERIABANK merger
Adjusted net income available to common of $193 million or EPS of $0.35*
Reflects strong fee income and continued expense discipline partially offset by the impact of net interest income headwinds and a CECL reserve build of $13 million
ROCE of 28.49%; Adjusted ROTCE of 13.90%*
Tangible book value per share of $9.92 remained relatively stable
MEMPHIS, Tenn., October 23, 2020 – First Horizon National Corp. (NYSE: FHN or “First Horizon”) today reported third quarter 2020 net income available to common shareholders of $523 million, with earnings per share of $0.95. Third quarter 2020 results reflect the impact of the July 1, 2020, IBERIABANK Corporation merger (“IBKC Merger”) and the July 17, 2020, acquisition of 30 Truist branches ("Branch Acquisition") and include $269 million pre-tax, or $0.60 per share, from notable items largely related to the IBKC Merger. Excluding notable items, adjusted third quarter net income available to common shareholders totaled $193 million, or $0.35 per share.* Reported results prior to third quarter 2020 reflect legacy First Horizon results only.
“We achieved major milestones in third quarter 2020 with the completion of our merger of equals with IBERIABANK and the Truist branch acquisition,” said President and Chief Executive Officer Bryan Jordan. “We also delivered strong results despite continued macroeconomic and interest rate headwinds tied to the pandemic, highlighted by strong execution in our counter-cyclical fee income businesses and continued expense discipline.”
Jordan continued, “I am incredibly proud of the hard work and dedication of our associates as they continue to focus on delivering for our clients, communities and shareholders as we bring our two companies together. Our team has been extraordinarily resilient and focused through this year of great change. The benefits of our more diversified product set, enhanced scale, expanded presence in attractive southern markets and client-centric culture provide a strong framework to continue to deliver a superior client experience with enhanced productivity and synergies. The integration is well underway, and I have even more confidence today than when we announced the merger that we are better together and well positioned to deliver for all of our stakeholders."
Third Quarter 2020 Notable Items

Notable Items |  |  |  |  |  |  |  |  |  |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |
(Millions) | 3Q20 |  | 2Q20 |  |  |  |  |  | 3Q19 |
Summary of Notable Items: |  |  |  |  |  |  |  |  |  |
Purchase accounting gain | $ | 532 |  |  | $ | — |  |  |  |  |  |  | $ | — |  |
Merger/acquisition non-PCD provision expense | (147) |  |  | — |  |  |  |  |  |  | — |  |
Merger/acquisition expense | (101) |  |  | (14) |  |  |  |  |  |  | (9) |  |
Charitable contributions | (15) |  |  | — |  |  |  |  |  |  | — |  |
Other notable expenses | — |  |  | — |  |  |  |  |  |  | (22) |  |
Total Notable items | $ | 269 |  |  | $ | (14) |  |  |  |  |  |  | $ | (31) |  |

*References to "Adjusted" results exclude notable items and are Non-GAAP Financial Measures. Please see page 5 for information on our use of Non-GAAP measures and a reconciliation of these measures to GAAP beginning on page 23.
1

First Horizon National Corporation
Third quarter 2020 results include a net $269 million of notable items primarily tied to the IBKC Merger/Branch Acquisition including:
•A $532 million non-taxable merger purchase accounting gain in other noninterest income
•$101 million of merger/acquisition-related expense largely recorded in personnel, outside services and other non interest income including the Louisiana Foundation contribution
•$147 million of provision for loan losses related to non-purchase credit deteriorated (non-PCD) loans
•Results also reflect $15 million of other noninterest expense tied to the donation of Paycheck Protection Plan (PPP) fees to the First Horizon Foundation to assist low- and moderate -income communities.
Excluding the notable items, the IBKC Merger and Branch Acquisition added $225 million of net interest income,$91 million of noninterest income and $170 million of noninterest expense.
Third Quarter 2020 Highlights*
•Net income available to common of $523 million with EPS of $.0.95; Adjusted net income available to common of $193 million, or $0.35 per share excluding merger-related and other notable items*
•Total revenue of $1.4 billion increased $843 million from second quarter 2020 driven by the $532 merger purchase accounting gain and $313 million impact of the IBKC Merger
•Results reflect strength in fixed income and mortgage banking, which helped to mitigate net interest income headwinds and continued COVID-19 impacts on traditional banking businesses
•Expense of $587 million includes $101 million of notable items largely tied to IBKC Merger; Adjusted expense of $471 million reflects the impact of the IBKC Merger and continued expense discipline with the benefit of an additional $8 million of merger cost saves*
•Efficiency ratio improved to 43.31% from 62.74% at June 30, 2020; Adjusted efficiency ratio of 57.26%*
•Provision for credit losses totaled $227 million and included $147 million related to non-purchase credit deteriorated loans included in notable items; Adjusted provision expense of $80 million reflects a $13 million CECL-related reserve build*
•Tangible book value per share of $9.92 remained relatively stable at September 30, 2020
•ROCE of 28.49% with Adjusted ROTCE of 13.90%*; estimated CET 1 of 9.15% and total capital of 10.19%
•Period-end loan-to-deposit ratio of 87%
Strategic Plan Update
•Achieved merger cost saves of approximately $18 million year to date, with $8 million in third quarter 2020; targeting $170 million annualized in 2022
•Merger integration well underway with significant progress across key milestones including finalizing 100% of major tech system decisions, completing HR system conversion, aligning benefit plans and establishing go-to-market and organizational models
•Three-year strategic plan to be finalized in fourth quarter 2020
COVID-19 Update:
•Donated $15 million of fees associated with PPP to assist low- and moderate-income communities
•PPP portfolio of $4.2 billion, providing aid and jobs for more than 500,000 clients' employees
•Loan deferrals, excluding PPP, declined to 2.4% from a peak of 12.8%
•Closely monitoring industries currently impacted by COVID-19 disruptions with deep dive portfolio reviews
•Continue to prioritize health and safety, and remain focused on executing the business continuity plan, proactive client outreach and communication, and risk management
*References to "Adjusted" results exclude notable items and are Non-GAAP Financial Measures. Please see page 5 for information on our use of Non-GAAP measures and a reconciliation of these measures to GAAP beginning on page 23.
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First Horizon National Corporation

SUMMARY RESULTS, Continued |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  | 3Q20 change vs. |  |  |  |  |  |  |
(In millions, except EPS) |  | 3Q20 |  | 2Q20 |  | 3Q19 |  | 2Q20 |  |  |  | 3Q19 |  |  |
|  |  |  |  |  |  |  | $/bp |  | % |  | $/bp |  | % |
Income Statement |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income |  | $ | 532 |  |  | $ | 305 |  |  | $ | 301 |  |  | $ | 227 |  |  | 74 |  |  | $ | 231 |  |  | 77 |  |
Noninterest income1 |  | 823 |  |  | 206 |  |  | 172 |  |  | 617 |  |  | NM |  | 651 |  |  | NM |
Total revenue |  | 1,355 |  |  | 512 |  |  | 472 |  |  | 843 |  |  | NM |  | 883 |  |  | NM |
Noninterest expense |  | 587 |  |  | 321 |  |  | 308 |  |  | 266 |  |  | 83 |  |  | 279 |  |  | 91 |  |
Pre-provision net revenue2 |  | 768 |  |  | 191 |  |  | 164 |  |  | 577 |  |  | NM |  | 604 |  |  | NM |
Provision for credit losses3 |  | 227 |  |  | 121 |  |  | 14 |  |  | 106 |  |  | 88 |  |  | 213 |  |  | NM |
Income before income taxes |  | 541 |  |  | 69 |  |  | 150 |  |  | 472 |  |  | NM |  | 391 |  |  | NM |
Provision for income taxes |  | 2 |  |  | 13 |  |  | 36 |  |  | (11) |  |  | (85) |  |  | (34) |  |  | (94) |  |
Net income |  | 539 |  |  | 57 |  |  | 114 |  |  | 482 |  |  | NM |  | 425 |  |  | NM |
Net income attributable to noncontrolling interest |  | 3 |  |  | 3 |  |  | 3 |  |  | — |  |  | * |  | — |  |  | * |
Net income/(loss) attributable to controlling interest |  | 536 |  |  | 54 |  |  | 111 |  |  | 482 |  |  | NM |  | 425 |  |  | NM |
Preferred stock dividends |  | 13 |  |  | 2 |  |  | 2 |  |  | 11 |  |  | NM |  | 11 |  |  | NM |
Net income/(loss) available to common shareholders |  | $ | 523 |  |  | $ | 52 |  |  | $ | 110 |  |  | $ | 471 |  |  | NM |  | $ | 413 |  |  | NM |
Adjusted net income4 |  | $ | 208 |  |  | $ | 68 |  |  | $ | 138 |  |  | $ | 140 |  |  | NM |  | $ | 70 |  |  | 51 |  |
Adjusted net income/loss available to common shareholders4 |  | $ | 193 |  |  | $ | 64 |  |  | $ | 134 |  |  | $ | 129 |  |  | NM |  | $ | 59 |  |  | 44 |  |
Common stock information |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
EPS |  | $ | 0.95 |  |  | $ | 0.17 |  |  | $ | 0.35 |  |  | $ | 0.78 |  |  | NM |  | $ | 0.60 |  |  | NM |
Adjusted EPS4 |  | $ | 0.35 |  |  | $ | 0.20 |  |  | $ | 0.43 |  |  | $ | 0.15 |  |  | 67 |  |  | $ | (0.08) |  |  | 19 |  |
Diluted shares |  | 551 |  |  | 313 |  |  | 314 |  |  | 238 |  |  | 76 |  |  | 237 |  |  | 75 |  |
Key performance metrics |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest margin |  | 2.84 | % |  | 2.90 | % |  | 3.21 | % |  | (6)bp |  |  |  | (37)bp |  |  |
Efficiency ratio |  | 43.31 | % |  | 62.74 | % |  | 65.26 | % |  | NM |  |  |  | NM |  |  |
Adjusted efficiency ratio4 |  | 57.26 | % |  | 59.95 | % |  | 58.61 | % |  | (269) |  |  |  | (135) |  |  |
Effective income tax rate |  | — | % |  | 18 | % |  | 24 | % |  | NM |  |  |  | NM |  |  |
Return on average assets |  | 2.63 | % |  | 0.48 | % |  | 1.08 | % |  | 215 |  |  |  | 155 |  |  |
Adjusted return on average assets4 |  | 1.01 | % |  | 0.57 | % |  | 1.31 | % |  | 44 |  |  |  | (30) |  |  |
Return on average common equity (“ROCE") |  | 28.49 | % |  | 4.50 | % |  | 9.50 | % |  | NM |  |  |  | NM |  |  |
Return on average tangible common equity (“ROTCE”)4 |  | 37.75 | % |  | 6.74 | % |  | 14.49 | % |  | NM |  |  |  | NM |  |  |
Adjusted return on average tangible common equity (“ROTCE”)4 |  | 13.90 | % |  | 8.26 | % |  | 17.73 | % |  | 564 |  |  |  | (383) |  |  |
Noninterest income as a % of total revenue |  | 60.72 | % |  | 40.32 | % |  | 36.25 | % |  | NM |  |  |  | NM |  |  |
Adjusted noninterest income as a % of total revenue4 |  | 35.32 | % |  | 40.32 | % |  | 36.25 | % |  | (500) |  |  |  | (93) |  |  |
Balance Sheet (billions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Average loans |  | $ | 60 |  |  | $ | 34 |  |  | $ | 30 |  |  | $ | 26 |  |  | 77 |  |  | $ | 30 |  |  | NM |
Average deposits |  | $ | 67 |  |  | $ | 38 |  |  | $ | 32 |  |  | $ | 30 |  |  | 79 |  |  | $ | 35 |  |  | NM |
Average assets |  | $ | 82 |  |  | $ | 48 |  |  | $ | 42 |  |  | $ | 34 |  |  | 70 |  |  | $ | 40 |  |  | 95 |  |
Average common equity |  | $ | 7 |  |  | $ | 5 |  |  | $ | 5 |  |  | $ | 3 |  |  | 56 |  |  | $ | 3 |  |  | 60 |  |
Asset Quality Highlights |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance to loans and leases ratio |  | 1.65 | % |  | 1.64 | % |  | 0.62 | % |  |  |  |  |  |  |  |  |
Net charge-off ratio |  | 0.44 | % |  | 0.20 | % |  | 0.19 | % |  |  |  |  |  |  |  |  |
Nonperforming loan and leases ratio |  | 0.75 | % |  | 0.69 | % |  | 0.55 | % |  |  |  |  |  |  |  |  |
Capital Highlights (current quarter is an estimate) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common Equity Tier 1 |  | 9.15 | % |  | 9.25 | % |  | 9.01 | % |  |  |  |  |  |  |  |  |
Tier 1 |  | 10.19 | % |  | 10.69 | % |  | 9.97 | % |  |  |  |  |  |  |  |  |
Total Capital |  | 11.97 | % |  | 12.47 | % |  | 11.01 | % |  |  |  |  |  |  |  |  |
Leverage |  | 8.25 | % |  | 8.55 | % |  | 9.05 | % |  |  |  |  |  |  |  |  |

Numbers may not foot due to rounding.
Certain previously reported amounts have been reclassified to agree with current presentation.
See footnote disclosures on page 22.
*References to "Adjusted" results exclude notable items and are Non-GAAP Financial Measures. Please see page 5 for information on our use of Non-GAAP measures and a reconciliation of these measures to GAAP beginning on page 23.
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First Horizon National Corporation
Net interest income
Net interest income of $532 million increased $227 million from second quarter 2020 driven by the $225 million impact of the IBKC Merger and Branch Acquisition and included a net $44 million benefit, or 20 basis points of net interest margin related to net purchase accounting accretion. Net interest margin of 2.84% compares with 2.90% in the prior quarter, largely reflecting continued headwinds from the low-rate environment. Net interest margin results also included faster prepayment speeds and the impact of excess cash balances.
Loans and leases
Loan and lease balances at September 30, 2020 of $59.7 billion increased $27.0 billion from June 30, 2020, driven by the addition of the IBERIABANK loan portfolio and Branch Acquisition. Period-end results also reflect a $1.6 billion increase in loans to mortgage companies.
Deposits
Deposits of $68.4 billion at September 30, 2020, increased from $37.8 billion at June 30, 2020, driven by the impact of the IBKC Merger and Branch Acquisition. Results also reflect continued higher levels of customer liquidity. Interest bearing deposit costs of 36 basis points improved 2 basis points linked quarter, reflecting lower rates and pricing discipline.
Noninterest income
Noninterest income of $823 million increased $617 million from second quarter 2020 driven by the $623 million impact of the IBKC Merger and Branch Acquisition, which included $532 million of notable items. Adjusted noninterest income of $291 million increased $85 million driven by the addition of IBKC.*
Noninterest expense
Noninterest expense of $587 million increased $266 million from second quarter 2020 driven by the $170 million impact of the IBKC Merger and Branch Acquisition and included $116 million of notable items. Adjusted noninterest expense totaled $471 million in third quarter 2020 and reflected a net $8 million benefit from merger-related cost saves.*
Asset Quality
Net charge-offs of $67 million, or 44 basis points, compared with $17 million, or 20 basis points in second quarter 2020 largely reflecting the impact of the IBKC Merger and losses tied to the energy portfolio.
Nonperforming loans of $447 million compared with $226 million in second quarter 2020, largely reflecting the impact of the IBKC Merger. Third quarter 2020 allowance to nonperforming coverage ratio at 221% compares with 238% from second quarter 2020. Third quarter 2020 nonperforming loans to loans ratio of 75 basis points compared with 69 basis points at second quarter 2020.
The allowance to loan ratio remained relatively stable at 1.65% up from 1.64% in the second quarter.
Provision for credit losses of $227 million increased $106 million from second quarter 2020 driven by a
$147 million notable item impact tied to the non-PCD loan portfolio impact of the IBKC Merger and Branch Acquisition. Adjusted provision for credit losses of $80 million decreased $41 million linked quarter.*
Capital
Estimated CET1 ratio of 9.15% in third quarter 2020 compared with 9.25% in second quarter 2020. There were no share repurchases in third quarter 2020.
Income tax
The effective tax rate of 0.41% in third quarter 2020 compared to 18.40% in the second quarter 2020 largely reflecting the impact of the IBKC Merger purchase accounting gain which is nontaxable. Excluding the impact from the merger, the adjusted tax rate was 23%.*
*References to "Adjusted" results exclude notable items and are Non-GAAP Financial Measures. Please see page 5 for information on our use of Non-GAAP measures and a reconciliation of these measures to GAAP beginning on page 23.
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First Horizon National Corporation
Conference call information
Analysts, investors and interested parties may call toll-free starting at 8:15 a.m. CT on October 23 by dialing 1-888-317-6003 (if calling from the U.S.) or 412-317-6061 (if calling from outside the U.S) and entering access code 4874702. The conference call will begin at 8:30 a.m. CT.
Participants can also opt to listen to the live audio webcast with the accompanying slide presentation at http://ir.fhnc.com/Event.
A replay of the call will be available beginning at noon CT on October 23 until midnight CT on November 6. To listen to the replay, dial 1-877-344-7529 (U.S. callers) or 412-317-0088 (international callers); the access code is 10148078. A replay of the webcast will also be available at http://ir.fhnc.com/Event by midnight CT on October 23 and will be archived on the site for one year.
Forward-Looking Statements
This communication may contain forward-looking information, including guidance, involving significant risks and uncertainties. Forward-looking information is identified by words such as "believe," "expect," "anticipate," "intend," "estimate," "should," "is likely," "will," "going forward," and other expressions that indicate future events and trends and may be followed by or reference cautionary statements. A number of factors could cause actual results to differ materially from results stated in or suggested by 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; ability to execute business plans; regional, national, and world-wide political developments; recent and future legislative and regulatory developments; inflation or deflation; market (particularly real estate market) and monetary fluctuations; pestilence; man-made or natural disasters; customer, investor and regulatory responses to any of those conditions or events; matters mentioned in this release; critical accounting estimates; FHN’s success in executing its business plans and strategies following its 2020 merger with IBERIABANK Corporation, and managing the risks involved; the potential impacts on FHN’s businesses of the coronavirus COVID-19 pandemic, including negative impacts from quarantines, market declines, and volatility, and changes in customer behavior related to COVID-19; and other factors described in FHN's annual report on Form 10-K, FHN’s other recent filings with the SEC, and FHN’s most recent earnings release and related materials. FHN disclaims any obligation to update any forward-looking statements to reflect future events or developments, or changes in expectations.
Use of Non-GAAP Measures and Regulatory Measures that are not GAAP
Certain measures are included in this financial supplement that are “non-GAAP,” meaning (under U.S. financial reporting rules) they are not presented in accordance with generally accepted accounting principles (“GAAP”) in the U.S. and also are not codified in U.S. banking regulations currently applicable to FHN. Although other entities may use calculation methods that differ from those used by FHN for non-GAAP measures, FHN’s management believes such measures are relevant to understanding the financial condition, capital position, and financial results of FHN and its business segments. Non-GAAP measures are reported to FHN’s management and Board of Directors through various internal reports.
Presentation of regulatory measures, some of which follow regulatory definitions rather than GAAP, provides a meaningful base for comparability to other financial institutions subject to the same regulations as FHN. Such measures are used by the various banking regulators in reviewing the performance, stability, and capital adequacy of financial institutions they regulate. Although not GAAP terms, these regulatory measures are not considered “non-GAAP” under U.S. financial reporting rules as long as their presentation conforms to regulatory standards. Regulatory measures used in this financial supplement include: common equity tier 1 capital, generally defined as common equity less goodwill, other intangibles, and certain other required regulatory deductions; tier 1 capital, generally defined as the sum of core capital (including common equity and instruments that cannot be redeemed at the option of the holder) adjusted for certain items under risk based capital regulations; and risk weighted assets (“RWA”), which is a measure of total on- and off-balance sheet assets adjusted for credit and market risk, used to determine regulatory capital ratios.
*References to "Adjusted" results exclude notable items and are Non-GAAP Financial Measures. Please see page 5 for information on our use of Non-GAAP measures and a reconciliation of these measures to GAAP beginning on page 23.
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First Horizon National Corporation
The non-GAAP measures presented in this earnings release are pre-provision net revenue ("PPNR"), return on average tangible common equity (“ROTCE”), tangible common equity (“TCE”) to tangible assets (“TA”), and tangible book value ("TBV") per common share, and various consolidated and segment results and performance measures and ratios adjusted for notable items.
Refer to the tabular reconciliation of non-GAAP to GAAP measures and presentation of the most comparable GAAP items beginning on page 23.
*References to "Adjusted" results exclude notable items and are Non-GAAP Financial Measures. Please see page 5 for information on our use of Non-GAAP measures and a reconciliation of these measures to GAAP beginning on page 23.
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First Horizon National Corporation

FHN CONSOLIDATED INCOME STATEMENT |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  | 3Q20 change vs. |  |  |  |  |  |  |
(In millions, except per share data) | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q19 |  | 3Q19 |  | 2Q20 |  |  |  | 3Q19 |  |  |
|  |  |  |  |  |  |  |  |  |  | $ |  | % |  | $ |  | % |
Interest income | $ | 598 |  |  | $ | 347 |  |  | $ | 378 |  |  | $ | 404 |  |  | $ | 407 |  |  | $ | 251 |  |  | 72 |  |  | $ | 191 |  |  | 47 |  |
Interest expense | 66 |  |  | 41 |  |  | 76 |  |  | 93 |  |  | 107 |  |  | 25 |  |  | 61 |  |  | (41) |  |  | (38) |  |
Net interest income | 532 |  |  | 305 |  |  | 303 |  |  | 311 |  |  | 301 |  |  | 227 |  |  | 74 |  |  | 231 |  |  | 77 |  |
Noninterest income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed income | 111 |  |  | 112 |  |  | 96 |  |  | 81 |  |  | 78 |  |  | (1) |  |  | (1) |  |  | 33 |  |  | 42 |  |
Mortgage banking and title | 66 |  |  | 4 |  |  | 2 |  |  | 4 |  |  | 2 |  |  | 62 |  |  | NM |  | 64 |  |  | NM |
Brokerage, trust, and insurance | 30 |  |  | 22 |  |  | 23 |  |  | 22 |  |  | 22 |  |  | 8 |  |  | 36 |  |  | 8 |  |  | 36 |  |
Service charges and fees | 50 |  |  | 35 |  |  | 36 |  |  | 39 |  |  | 40 |  |  | 15 |  |  | 43 |  |  | 10 |  |  | 25 |  |
Card and digital banking fees | 17 |  |  | 12 |  |  | 12 |  |  | 14 |  |  | 13 |  |  | 5 |  |  | 42 |  |  | 4 |  |  | 31 |  |
Deferred compensation income | 4 |  |  | 8 |  |  | (10) |  |  | 3 |  |  | — |  |  | (4) |  |  | (50) |  |  | 4 |  |  | NM |
Other noninterest income1 | 546 |  |  | 12 |  |  | 15 |  |  | 20 |  |  | 17 |  |  | 534 |  |  | NM |  | 529 |  |  | NM |
Total noninterest income | 823 |  |  | 206 |  |  | 175 |  |  | 183 |  |  | 172 |  |  | 617 |  |  | NM |  | 651 |  |  | NM |
Total revenue | 1,355 |  |  | 512 |  |  | 478 |  |  | 495 |  |  | 472 |  |  | 843 |  |  | NM |  | 883 |  |  | NM |
Noninterest expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Personnel expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Salaries and benefits | 201 |  |  | 111 |  |  | 113 |  |  | 112 |  |  | 111 |  |  | 90 |  |  | 81 |  |  | 90 |  |  | 81 |  |
Incentives and commissions | 126 |  |  | 79 |  |  | 81 |  |  | 63 |  |  | 55 |  |  | 47 |  |  | 59 |  |  | 71 |  |  | NM |
Deferred compensation expense | 3 |  |  | 9 |  |  | (10) |  |  | 4 |  |  | 1 |  |  | (6) |  |  | (67) |  |  | 2 |  |  | NM |
Total personnel expenses | 329 |  |  | 200 |  |  | 183 |  |  | 179 |  |  | 167 |  |  | 129 |  |  | 65 |  |  | 162 |  |  | 97 |  |
Occupancy and equipment | 77 |  |  | 46 |  |  | 44 |  |  | 44 |  |  | 42 |  |  | 31 |  |  | 67 |  |  | 35 |  |  | 83 |  |
Outside services | 78 |  |  | 38 |  |  | 38 |  |  | 54 |  |  | 47 |  |  | 40 |  |  | NM |  | 31 |  |  | 66 |  |
Amortization of intangible assets | 15 |  |  | 5 |  |  | 5 |  |  | 6 |  |  | 6 |  |  | 10 |  |  | NM |  | 9 |  |  | NM |
Other noninterest expense | 89 |  |  | 31 |  |  | 31 |  |  | 45 |  |  | 46 |  |  | 58 |  |  | NM |  | 43 |  |  | 93 |  |
Total noninterest expense | 587 |  |  | 321 |  |  | 302 |  |  | 328 |  |  | 308 |  |  | 266 |  |  | 83 |  |  | 279 |  |  | 91 |  |
Pre-provision net revenue2 | 768 |  |  | 191 |  |  | 175 |  |  | 166 |  |  | 164 |  |  | 577 |  |  | NM |  | 604 |  |  | NM |
Provision for credit losses3 | 227 |  |  | 121 |  |  | 154 |  |  | 9 |  |  | 14 |  |  | 106 |  |  | 88 |  |  | 213 |  |  | NM |
Income before income taxes | 541 |  |  | 69 |  |  | 21 |  |  | 157 |  |  | 150 |  |  | 472 |  |  | NM |  | 391 |  |  | NM |
Provision for income taxes | 2 |  |  | 13 |  |  | 5 |  |  | 36 |  |  | 36 |  |  | (11) |  |  | (85) |  |  | (34) |  |  | (94) |  |
Net income | 539 |  |  | 57 |  |  | 16 |  |  | 121 |  |  | 114 |  |  | 482 |  |  | NM |  | 425 |  |  | NM |
Net income attributable to noncontrolling interest | 3 |  |  | 3 |  |  | 3 |  |  | 3 |  |  | 3 |  |  | — |  |  | * |  | — |  |  | * |
Net income attributable to controlling interest | 536 |  |  | 54 |  |  | 14 |  |  | 118 |  |  | 111 |  |  | 482 |  |  | NM |  | 425 |  |  | NM |
Preferred stock dividends | 13 |  |  | 2 |  |  | 2 |  |  | 2 |  |  | 2 |  |  | 11 |  |  | NM |  | 11 |  |  | NM |
Net income available to common shareholders | $ | 523 |  |  | $ | 52 |  |  | $ | 12 |  |  | $ | 117 |  |  | $ | 110 |  |  | $ | 471 |  |  | NM |  | $ | 413 |  |  | NM |
Common Share Data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
EPS | $ | 0.95 |  |  | $ | 0.17 |  |  | $ | 0.04 |  |  | $ | 0.38 |  |  | $ | 0.35 |  |  | $ | 0.78 |  |  | NM |  | $ | 0.60 |  |  | NM |
Basic shares | 550 |  |  | 312 |  |  | 312 |  |  | 311 |  |  | 312 |  |  | 238 |  |  | 76 |  |  | 238 |  |  | 76 |  |
Diluted EPS | $ | 0.95 |  |  | $ | 0.17 |  |  | $ | 0.04 |  |  | $ | 0.37 |  |  | $ | 0.35 |  |  | $ | 0.78 |  |  | NM |  | $ | 0.60 |  |  | NM |
Diluted shares | 551 |  |  | 313 |  |  | 313 |  |  | 313 |  |  | 314 |  |  | 238 |  |  | 76 |  |  | 237 |  |  | 75 |  |
Effective tax rate | — | % |  | 18 | % |  | 22 | % |  | 23 | % |  | 24 | % |  |  |  |  |  |  |  |  |

Numbers may not foot due to rounding.
Certain previously reported amounts have been reclassified to agree with current presentation.
See footnote disclosures on page 22.
7

First Horizon National Corporation

FHN ADJUSTED4 FINANCIAL DATA - SEE NOTABLE ITEMS ON PAGE 9
Quarterly, Unaudited

|  |  |  |  |  |  |  |  |  |  | 3Q20 change vs. |  |  |  |  |  |  |
(In millions, except per share data) | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q19 |  | 3Q19 |  | 2Q20 |  |  |  | 3Q19 |  |  |
|  |  |  |  |  |  |  |  |  |  | $ |  | % |  | $ |  | % |
Adjusted noninterest income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed income | $ | 111 |  |  | $ | 112 |  |  | $ | 96 |  |  | $ | 81 |  |  | $ | 78 |  |  | $ | (1) |  |  | (1) |  |  | $ | 33 |  |  | 42 |  |
Mortgage banking and title | 66 |  |  | 4 |  |  | 2 |  |  | 4 |  |  | 2 |  |  | 62 |  |  | NM |  | 64 |  |  | NM |
Brokerage, trust, and insurance | 30 |  |  | 22 |  |  | 23 |  |  | 22 |  |  | 22 |  |  | 8 |  |  | 36 |  |  | 8 |  |  | 36 |  |
Service charges and fees | 50 |  |  | 35 |  |  | 36 |  |  | 39 |  |  | 40 |  |  | 15 |  |  | 43 |  |  | 10 |  |  | 25 |  |
Card and digital banking fees | 17 |  |  | 12 |  |  | 12 |  |  | 14 |  |  | 13 |  |  | 5 |  |  | 42 |  |  | 4 |  |  | 31 |  |
Deferred compensation income | 4 |  |  | 8 |  |  | (10) |  |  | 3 |  |  | — |  |  | (4) |  |  | (50) |  |  | 4 |  |  | NM |
Adjusted other noninterest income | 14 |  |  | 12 |  |  | 15 |  |  | 20 |  |  | 17 |  |  | 2 |  |  | 17 |  |  | (3) |  |  | (18) |  |
Adjusted total noninterest income | $ | 291 |  |  | $ | 206 |  |  | $ | 175 |  |  | $ | 183 |  |  | $ | 172 |  |  | $ | 85 |  |  | 41 |  |  | $ | 119 |  |  | 69 |  |
Adjusted noninterest expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Adjusted personnel expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Adjusted salaries and benefits | $ | 200 |  |  | $ | 107 |  |  | $ | 112 |  |  | $ | 107 |  |  | $ | 109 |  |  | $ | 93 |  |  | 87 |  |  | $ | 91 |  |  | 83 |  |
Adjusted Incentives and commissions | 91 |  |  | 79 |  |  | 81 |  |  | 63 |  |  | 59 |  |  | 12 |  |  | 15 |  |  | 32 |  |  | 54 |  |
Deferred compensation expense | 3 |  |  | 9 |  |  | (10) |  |  | 4 |  |  | 1 |  |  | (6) |  |  | (67) |  |  | 2 |  |  | NM |
Adjusted total personnel expenses | 294 |  |  | 195 |  |  | 182 |  |  | 174 |  |  | 168 |  |  | 99 |  |  | 51 |  |  | 126 |  |  | 75 |  |
Adjusted occupancy and equipment | 73 |  |  | 46 |  |  | 44 |  |  | 44 |  |  | 42 |  |  | 27 |  |  | 59 |  |  | 31 |  |  | 74 |  |
Adjusted outside services | 46 |  |  | 33 |  |  | 37 |  |  | 36 |  |  | 35 |  |  | 13 |  |  | 39 |  |  | 11 |  |  | 31 |  |
Adjusted amortization of intangible assets | 14 |  |  | 5 |  |  | 5 |  |  | 6 |  |  | 6 |  |  | 9 |  |  | NM |  | 8 |  |  | NM |
Adjusted other noninterest expense | 45 |  |  | 27 |  |  | 28 |  |  | 31 |  |  | 25 |  |  | 18 |  |  | 67 |  |  | 20 |  |  | 80 |  |
Adjusted total noninterest expense | $ | 471 |  |  | $ | 307 |  |  | $ | 296 |  |  | $ | 291 |  |  | $ | 277 |  |  | $ | 164 |  |  | 53 |  |  | $ | 194 |  |  | 70 |  |
Adjusted pre-provision net revenue4 | $ | 352 |  |  | $ | 205 |  |  | $ | 181 |  |  | $ | 203 |  |  | $ | 196 |  |  | $ | 147 |  |  | 72 |  |  | $ | 156 |  |  | 80 |  |
Adjusted provision for credit losses3 | $ | 80 |  |  | $ | 121 |  |  | $ | 154 |  |  | $ | 9 |  |  | $ | 14 |  |  | $ | (41) |  |  | (34) |  |  | $ | 66 |  |  | NM |
Adjusted net income available to common shareholders | $ | 193 |  |  | $ | 64 |  |  | $ | 17 |  |  | $ | 147 |  |  | $ | 134 |  |  | $ | 129 |  |  | NM |  | $ | 59 |  |  | 44 |  |
Adjusted Common Share Data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Adjusted diluted EPS | $ | 0.35 |  |  | $ | 0.20 |  |  | $ | 0.05 |  |  | $ | 0.47 |  |  | $ | 0.43 |  |  | $ | 0.15 |  |  | 75 |  |  | $ | (0.08) |  |  | (19) |  |
Diluted shares | 551 |  |  | 313 |  |  | 313 |  |  | 313 |  |  | 314 |  |  | 238 |  |  | 76 |  |  | 237 |  |  | 75 |  |
Adjusted effective tax rate | 23 | % |  | 18 | % |  | 22 | % |  | 22 | % |  | 24 | % |  |  |  |  |  |  |  |  |

Numbers may not foot due to rounding.
Certain previously reported amounts have been reclassified to agree with current presentation.
See footnote disclosures on page 22.
8

First Horizon National Corporation

NOTABLE ITEMS
Quarterly, Unaudited

(In millions) | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q19 |  | 3Q19 |  |  |  |  |  |  |  |
Noninterest income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other noninterest income | $ | (532) |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |  |  |  |  |  |  |
Total noninterest income | $ | (532) |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |  |  |  |  |  |  |
Noninterest expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Personnel expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Salaries and benefits | $ | (1) |  |  | $ | (5) |  |  | $ | (1) |  |  | $ | (4) |  |  | $ | (3) |  |  |  |  |  |  |  |  |
Incentives and commissions | (34) |  |  | — |  |  | — |  |  | — |  |  | 4 |  |  |  |  |  |  |  |  |
Deferred compensation expense | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  |  |  |  |  |
Total personnel expenses | (35) |  |  | (5) |  |  | (1) |  |  | (4) |  |  | 1 |  |  |  |  |  |  |  |  |
Occupancy and equipment | (4) |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  |  |  |  |  |
Outside services | (32) |  |  | (5) |  |  | (2) |  |  | (18) |  |  | (12) |  |  |  |  |  |  |  |  |
Amortization of intangible assets | (1) |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  |  |  |  |  |
Other noninterest expense | (44) |  |  | (4) |  |  | (3) |  |  | (15) |  |  | (21) |  |  |  |  |  |  |  |  |
Total noninterest expense | $ | (116) |  |  | $ | (14) |  |  | $ | (6) |  |  | $ | (37) |  |  | $ | (31) |  |  |  |  |  |  |  |  |
Provision for credit losses | $ | (147) |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |  |  |  |  |  |  |
Income before income taxes | $ | (269) |  |  | $ | 14 |  |  | $ | 6 |  |  | $ | 37 |  |  | $ | 31 |  |  |  |  |  |  |  |  |
Provision for income taxes | 61 |  |  | 3 |  |  | 1 |  |  | 7 |  |  | 7 |  |  |  |  |  |  |  |  |
Net income/(loss) available to common shareholders | $ | (331) |  |  | $ | 12 |  |  | $ | 5 |  |  | $ | 30 |  |  | $ | 24 |  |  |  |  |  |  |  |  |

(Millions) | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q19 |  | 3Q19 |
Summary of Notable Items: |  |  |  |  |  |  |  |  |  |
Purchase accounting gain | $ | 532 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |
Merger/acquisition non-PCD provision expense | (147) |  |  | — |  |  | — |  |  | — |  |  | — |  |
Merger/acquisition expense* | (101) |  |  | (14) |  |  | (6) |  |  | (16) |  |  | (9) |  |
Charitable contributions | (15) |  |  | — |  |  | — |  |  | (11) |  |  | — |  |
Other notable expenses | — |  |  | — |  |  | — |  |  | (10) |  |  | (22) |  |
Total notable items | $ | 269 |  |  | $ | (14) |  |  | $ | (6) |  |  | $ | (37) |  |  | $ | (31) |  |

Numbers may not foot due to rounding
•3Q20 includes $20 million of charitable contributions to establish the First Horizon Louisiana Foundation.
9

First Horizon National Corporation

|  |  |  |  |  |  |  |  |  |  | 3Q20 change vs. |  |  |
FINANCIAL RATIOS | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q19 |  | 3Q19 |  | 2Q20 |  | 3Q19 |
Net interest margin | 2.84 |  | % | 2.90 |  | % | 3.16 |  | % | 3.26 |  | % | 3.21 |  | % | (2) |  | (12) |
Return on average assets | 2.63 |  | % | .48 |  | % | .15 |  | % | 1.12 |  | % | 1.08 |  | % | NM |  | NM |
Adjusted return on average assets4 | 1.01 |  | % | .57 |  | % | .19 |  | % | 1.40 |  | % | 1.31 |  | % | 77 |  | (23) |
Return on average common equity (“ROCE”) | 28.49 |  | % | 4.50 |  | % | 1.05 |  | % | 9.97 |  | % | 9.50 |  | % | NM |  | NM |
Return on average tangible common equity (“ROTCE”)4 | 37.75 |  | % | 6.74 |  | % | 1.59 |  | % | 15.03 |  | % | 14.49 |  | % | NM |  | NM |
Adjusted return on average tangible common equity (“ROTCE”)4 | 13.90 |  | % | 8.26 |  | % | 2.19 |  | % | 18.88 |  | % | 17.73 |  | % | 68 |  | (22) |
Noninterest income as a % of total revenue | 60.72 |  | % | 40.32 |  | % | 36.59 |  | % | 37.05 |  | % | 36.25 |  | % | 51 |  | 68 |
Adjusted noninterest income as a % of total revenue4 | 35.32 |  | % | 40.32 |  | % | 36.59 |  | % | 37.05 |  | % | 36.25 |  | % | (12) |  | (3) |
Efficiency ratio | 43.31 |  | % | 62.74 |  | % | 63.26 |  | % | 66.35 |  | % | 65.26 |  | % | (31) |  | (34) |
Adjusted efficiency ratio4 | 57.26 |  | % | 59.95 |  | % | 62.05 |  | % | 58.88 |  | % | 58.61 |  | % | (4) |  | (2) |
CAPITAL - PERIOD END (PRELIMINARY) |  |  |  |  |  |  |  |  |  |  |  |  |  |
CET1 capital ratio | 9.15 |  | % | 9.25 |  | % | 8.54 |  | % | 9.20 |  | % | 9.01 |  | % | (1) |  | 2 |
Tier 1 capital ratio | 10.19 |  | % | 10.69 |  | % | 9.52 |  | % | 10.15 |  | % | 9.97 |  | % | (5) |  | 2 |
Total capital ratio | 11.97 |  | % | 12.47 |  | % | 10.78 |  | % | 11.22 |  | % | 11.01 |  | % | (4) |  | 9 |
Tier 1 leverage ratio | 8.25 |  | % | 8.55 |  | % | 9.00 |  | % | 9.04 |  | % | 9.05 |  | % | (4) |  | (9) |
Risk-weighted assets (“RWA”) (millions) | $ | 65 |  |  | $ | 37 |  |  | $ | 40 |  |  | $ | 37 |  |  | $ | 37 |  |  | 76 |  | 76 |
Total equity to total assets | 9.81 |  | % | 10.71 |  | % | 10.71 |  | % | 11.72 |  | % | 11.43 |  | % | (8) |  | (14) |
Tangible common equity/tangible assets (“TCE/TA”)4 | 6.78 |  | % | 6.63 |  | % | 6.81 |  | % | 7.48 |  | % | 7.20 |  | % | 2 |  | (6) |
Period-end shares outstanding (millions) | 555 |  |  | 312 |  |  | 312 |  |  | 311 |  |  | 311 |  |  | 78 |  | 78 |
Cash dividends declared per common share | $ | 0.15 |  |  | $ | 0.15 |  |  | $ | 0.15 |  |  | $ | 0.14 |  |  | $ | 0.14 |  |  | * |  | 7 |
Book value per common share | $ | 13.30 |  |  | $ | 14.96 |  |  | $ | 14.96 |  |  | $ | 15.04 |  |  | $ | 14.80 |  |  | (11) |  | (10) |
Tangible book value per common share4 | $ | 9.92 |  |  | $ | 9.99 |  |  | $ | 9.96 |  |  | $ | 10.02 |  |  | $ | 9.76 |  |  | (1) |  | 2 |
SELECTED BALANCE SHEET DATA |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans-to-deposit ratio (period-end balances) | 87.28 |  | % | 86.62 |  | % | 96.97 |  | % | 95.78 |  | % | 97.86 |  | % | 1 |  | (11) |
Loans-to-deposit ratio (average balances) | 89.59 |  | % | 90.52 |  | % | 92.83 |  | % | 93.68 |  | % | 92.73 |  | % | (1) |  | (3) |
Full-time equivalent associates | 8,121 |  |  | 5,006 |  |  | 4,969 |  |  | 5,005 |  |  | 5,116 |  |  | 62 |  | 59 |

Certain previously reported amounts have been reclassified to agree with current presentation.
See footnote disclosures on page 22..
10

First Horizon National Corporation
FHN CONSOLIDATED PERIOD-END BALANCE SHEET
Quarterly, Unaudited

|  |  |  |  |  |  |  |  |  |  | 3Q20 change vs. |  |  |  |  |  |  |  |
(In millions) | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q19 |  | 3Q19 |  | 2Q20 |  |  |  |  | 3Q19 |  |  |
|  |  |  |  |  |  |  |  |  |  | $ |  | % |  |  | $ |  | % |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans and leases: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) | $ | 33,656 |  |  | $ | 21,394 |  |  | $ | 22,124 |  |  | $ | 20,051 |  |  | $ | 20,294 |  |  | $ | 12,262 |  |  | 57 |  |  |  | $ | 13,362 |  |  | 66 |  |
Commercial real estate | 12,511 |  |  | 4,813 |  |  | 4,640 |  |  | 4,337 |  |  | 4,229 |  |  | 7,698 |  |  | NM |  |  | 8,282 |  |  | NM |
Consumer real estate | 12,328 |  |  | 6,052 |  |  | 6,119 |  |  | 6,177 |  |  | 6,245 |  |  | 6,276 |  |  | NM |  |  | 6,083 |  |  | 97 |  |
Credit card and other | 1,212 |  |  | 449 |  |  | 495 |  |  | 496 |  |  | 493 |  |  | 763 |  |  | NM |  |  | 719 |  |  | NM |
Loans and leases, net of unearned income | 59,707 |  |  | 32,709 |  |  | 33,378 |  |  | 31,061 |  |  | 31,261 |  |  | 26,998 |  |  | 83 |  |  |  | 28,446 |  |  | 91 |  |
Loans held for sale | 1,051 |  |  | 746 |  |  | 596 |  |  | 594 |  |  | 555 |  |  | 305 |  |  | 41 |  |  |  | 496 |  |  | 89 |  |
Investment securities | 7,996 |  |  | 5,476 |  |  | 4,545 |  |  | 4,445 |  |  | 4,416 |  |  | 2,520 |  |  | 46 |  |  |  | 3,580 |  |  | 81 |  |
Trading securities | 1,386 |  |  | 1,116 |  |  | 1,878 |  |  | 1,346 |  |  | 1,395 |  |  | 270 |  |  | 24 |  |  |  | (9) |  |  | (1) |  |
Interest-bearing deposits with banks | 5,443 |  |  | 3,136 |  |  | 671 |  |  | 482 |  |  | 364 |  |  | 2,307 |  |  | 74 |  |  |  | 5,079 |  |  | NM |
Federal funds sold and securities purchased under agreements to resell | 593 |  |  | 415 |  |  | 592 |  |  | 633 |  |  | 746 |  |  | 178 |  |  | 43 |  |  |  | (153) |  |  | (21) |  |
Total interest earning assets | 76,176 |  |  | 43,598 |  |  | 41,659 |  |  | 38,562 |  |  | 38,737 |  |  | 32,578 |  |  | 75 |  |  |  | 37,439 |  |  | 97 |  |
Cash and due from banks | 1,075 |  |  | 604 |  |  | 538 |  |  | 634 |  |  | 750 |  |  | 471 |  |  | 78 |  |  |  | 325 |  |  | 43 |  |
Goodwill and other intangible assets, net | 1,876 |  |  | 1,552 |  |  | 1,558 |  |  | 1,563 |  |  | 1,569 |  |  | 324 |  |  | 21 |  |  |  | 307 |  |  | 20 |  |
Premises and equipment, net | 756 |  |  | 448 |  |  | 448 |  |  | 455 |  |  | 452 |  |  | 308 |  |  | 69 |  |  |  | 304 |  |  | 67 |  |
Allowance for loan and lease losses5 | (988) |  |  | (538) |  |  | (444) |  |  | (200) |  |  | (193) |  |  | (450) |  |  | (84) |  |  |  | (795) |  |  | NM |
Other assets | 4,135 |  |  | 2,980 |  |  | 3,439 |  |  | 2,297 |  |  | 2,403 |  |  | 1,155 |  |  | 39 |  |  |  | 1,732 |  |  | 72 |  |
Total assets | $ | 83,030 |  |  | $ | 48,645 |  |  | $ | 47,197 |  |  | $ | 43,311 |  |  | $ | 43,718 |  |  | $ | 34,385 |  |  | 71 |  |  |  | $ | 39,312 |  |  | 90 |  |
Liabilities and Shareholders' Equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Savings | $ | 26,573 |  |  | $ | 13,532 |  |  | $ | 13,860 |  |  | $ | 11,665 |  |  | $ | 11,489 |  |  | $ | 13,041 |  |  | 96 |  |  |  | $ | 15,084 |  |  | NM |
Time deposits | 5,526 |  |  | 2,656 |  |  | 3,058 |  |  | 3,618 |  |  | 4,176 |  |  | 2,870 |  |  | NM |  |  | 1,350 |  |  | 32 |  |
Other interest-bearing deposits | 14,925 |  |  | 9,784 |  |  | 8,561 |  |  | 8,717 |  |  | 8,011 |  |  | 5,141 |  |  | 53 |  |  |  | 6,914 |  |  | 86 |  |
Total interest-bearing deposits | 47,025 |  |  | 25,972 |  |  | 25,480 |  |  | 24,001 |  |  | 23,676 |  |  | 21,053 |  |  | 81 |  |  |  | 23,349 |  |  | 99 |  |
Trading liabilities | 477 |  |  | 233 |  |  | 453 |  |  | 506 |  |  | 720 |  |  | 244 |  |  | NM |  |  | (243) |  |  | (34) |  |
Short-term borrowings | 2,142 |  |  | 2,392 |  |  | 5,325 |  |  | 3,518 |  |  | 3,948 |  |  | (250) |  |  | (10) |  |  |  | (1,806) |  |  | (46) |  |
Term borrowings | 2,162 |  |  | 2,032 |  |  | 793 |  |  | 791 |  |  | 1,195 |  |  | 130 |  |  | 6 |  |  |  | 967 |  |  | 81 |  |
Total interest-bearing liabilities | 51,805 |  |  | 30,628 |  |  | 32,050 |  |  | 28,816 |  |  | 29,539 |  |  | 21,177 |  |  | 69 |  |  |  | 22,266 |  |  | 75 |  |
Noninterest-bearing deposits | 21,384 |  |  | 11,788 |  |  | 8,940 |  |  | 8,429 |  |  | 8,269 |  |  | 9,596 |  |  | 81 |  |  |  | 13,115 |  |  | NM |
Other liabilities | 1,696 |  |  | 1,020 |  |  | 1,152 |  |  | 990 |  |  | 914 |  |  | 676 |  |  | 66 |  |  |  | 782 |  |  | 86 |  |
Total liabilities | 74,885 |  |  | 43,436 |  |  | 42,142 |  |  | 38,235 |  |  | 38,722 |  |  | 31,449 |  |  | 72 |  |  |  | 36,163 |  |  | 93 |  |
Shareholders' Equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Preferred stocks | 470 |  |  | 240 |  |  | 96 |  |  | 96 |  |  | 96 |  |  | 230 |  |  | 96 |  |  |  | 374 |  |  | NM |
Common stocks | 347 |  |  | 195 |  |  | 195 |  |  | 195 |  |  | 194 |  |  | 152 |  |  | 78 |  |  |  | 153 |  |  | 79 |  |
Capital surplus | 5,061 |  |  | 2,941 |  |  | 2,939 |  |  | 2,931 |  |  | 2,925 |  |  | 2,120 |  |  | 72 |  |  |  | 2,136 |  |  | 73 |  |
Retained earnings5 | 2,111 |  |  | 1,672 |  |  | 1,667 |  |  | 1,798 |  |  | 1,726 |  |  | 439 |  |  | 26 |  |  |  | 385 |  |  | 22 |  |
Accumulated other comprehensive loss, net | (140) |  |  | (135) |  |  | (136) |  |  | (240) |  |  | (241) |  |  | (5) |  |  | (4) |  |  |  | 101 |  |  | 42 |  |
Combined shareholders' equity | 7,849 |  |  | 4,913 |  |  | 4,760 |  |  | 4,781 |  |  | 4,701 |  |  | 2,936 |  |  | 60 |  |  |  | 3,148 |  |  | 67 |  |
Noncontrolling interest | 295 |  |  | 295 |  |  | 295 |  |  | 295 |  |  | 295 |  |  | — |  |  | * |  |  | — |  |  | * |
Total shareholders' equity | 8,144 |  |  | 5,208 |  |  | 5,056 |  |  | 5,076 |  |  | 4,996 |  |  | 2,936 |  |  | 56 |  |  |  | 3,148 |  |  | 63 |  |
Total liabilities and shareholders' equity | $ | 83,030 |  |  | $ | 48,645 |  |  | $ | 47,197 |  |  | $ | 43,311 |  |  | $ | 43,718 |  |  | $ | 34,385 |  |  | 71 |  |  |  | $ | 39,312 |  |  | 90 |  |

Numbers may not foot due to rounding.
Certain previously reported amounts have been reclassified to agree with current presentation.
See footnote disclosures on page 22.
11

First Horizon National Corporation
FHN CONSOLIDATED AVERAGE BALANCE SHEET
Quarterly, Unaudited

|  |  |  |  |  |  |  |  |  |  | 3Q20 change vs. |  |  |  |  |  |  |
(In millions) | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q19 |  | 3Q19 |  | 2Q20 |  |  |  | 3Q19 |  |  |
|  |  |  |  |  |  |  |  |  |  | $ |  | % |  | $ |  | % |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans and leases: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) | $ | 34,051 |  |  | $ | 22,694 |  |  | $ | 19,470 |  |  | $ | 19,740 |  |  | $ | 18,966 |  |  | $ | 11,357 |  |  | 50 |  |  | $ | 15,085 |  |  | 80 |  |
Commercial real estate | 12,414 |  |  | 4,710 |  |  | 4,422 |  |  | 4,264 |  |  | 4,269 |  |  | 7,704 |  |  | NM |  | 8,145 |  |  | NM |
Consumer real estate | 12,444 |  |  | 6,087 |  |  | 6,134 |  |  | 6,194 |  |  | 6,283 |  |  | 6,357 |  |  | NM |  | 6,161 |  |  | 98 |  |
Credit card and other | 1,209 |  |  | 476 |  |  | 498 |  |  | 509 |  |  | 498 |  |  | 733 |  |  | NM |  | 711 |  |  | NM |
Loans and leases, net of unearned income | 60,118 |  |  | 33,968 |  |  | 30,524 |  |  | 30,706 |  |  | 30,016 |  |  | 26,150 |  |  | 77 |  |  | 30,102 |  |  | NM |
Loans held-for-sale | 985 |  |  | 731 |  |  | 590 |  |  | 582 |  |  | 455 |  |  | 254 |  |  | 35 |  |  | 530 |  |  | NM |
Investment securities | 8,580 |  |  | 4,531 |  |  | 4,457 |  |  | 4,438 |  |  | 4,398 |  |  | 4,049 |  |  | 89 |  |  | 4,182 |  |  | 95 |  |
Trading securities | 1,194 |  |  | 1,420 |  |  | 1,831 |  |  | 1,264 |  |  | 1,391 |  |  | (226) |  |  | (16) |  |  | (197) |  |  | (14) |  |
Interest-bearing deposits with banks | 3,616 |  |  | 1,620 |  |  | 548 |  |  | 586 |  |  | 546 |  |  | 1,996 |  |  | NM |  | 3,070 |  |  | NM |
Federal funds sold and securities purchased under agreements to resell | 500 |  |  | 422 |  |  | 827 |  |  | 656 |  |  | 572 |  |  | 78 |  |  | 18 |  |  | (72) |  |  | (13) |  |
Total interest earning assets | 74,992 |  |  | 42,692 |  |  | 38,778 |  |  | 38,232 |  |  | 37,379 |  |  | 32,300 |  |  | 76 |  |  | 37,613 |  |  | NM |
Cash and due from banks | 1,028 |  |  | 562 |  |  | 610 |  |  | 610 |  |  | 596 |  |  | 466 |  |  | 83 |  |  | 432 |  |  | 72 |  |
Goodwill and other intangibles assets, net | 1,794 |  |  | 1,555 |  |  | 1,560 |  |  | 1,566 |  |  | 1,572 |  |  | 239 |  |  | 15 |  |  | 222 |  |  | 14 |  |
Premises and equipment, net | 747 |  |  | 452 |  |  | 451 |  |  | 451 |  |  | 452 |  |  | 295 |  |  | 65 |  |  | 295 |  |  | 65 |  |
Allowances for loan and lease losses5 | (980) |  |  | (476) |  |  | (354) |  |  | (196) |  |  | (197) |  |  | (504) |  |  | NM |  | (783) |  |  | NM |
Other assets | 4,103 |  |  | 3,150 |  |  | 2,507 |  |  | 2,223 |  |  | 2,139 |  |  | 953 |  |  | 30 |  |  | 1,964 |  |  | 92 |  |
Total assets | $ | 81,683 |  |  | $ | 47,934 |  |  | $ | 43,552 |  |  | $ | 42,886 |  |  | $ | 41,941 |  |  | $ | 33,749 |  |  | 70 |  |  | $ | 39,742 |  |  | 95 |  |
Liabilities and shareholders' equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Savings | $ | 25,648 |  |  | $ | 14,118 |  |  | $ | 12,117 |  |  | $ | 11,580 |  |  | $ | 11,696 |  |  | $ | 11,530 |  |  | 82 |  |  | $ | 13,952 |  |  | NM |
Time deposits | 5,783 |  |  | 2,836 |  |  | 3,357 |  |  | 3,934 |  |  | 4,330 |  |  | 2,947 |  |  | NM |  | 1,453 |  |  | 34 |  |
Other interest-bearing deposits | 14,771 |  |  | 9,256 |  |  | 8,743 |  |  | 8,721 |  |  | 8,110 |  |  | 5,515 |  |  | 60 |  |  | 6,661 |  |  | 82 |  |
Total interest-bearing deposits | 46,202 |  |  | 26,211 |  |  | 24,216 |  |  | 24,235 |  |  | 24,136 |  |  | 19,991 |  |  | 76 |  |  | 22,066 |  |  | 91 |  |
Trading liabilities | 360 |  |  | 352 |  |  | 751 |  |  | 586 |  |  | 501 |  |  | 8 |  |  | 2 |  |  | (141) |  |  | (28) |  |
Short-term borrowings | 2,469 |  |  | 2,603 |  |  | 3,211 |  |  | 2,709 |  |  | 2,145 |  |  | (134) |  |  | (5) |  |  | 324 |  |  | 15 |  |
Term borrowings | 2,172 |  |  | 1,426 |  |  | 791 |  |  | 928 |  |  | 1,186 |  |  | 746 |  |  | 52 |  |  | 986 |  |  | 83 |  |
Total interest-bearing liabilities | 51,202 |  |  | 30,593 |  |  | 28,967 |  |  | 28,458 |  |  | 27,967 |  |  | 20,609 |  |  | 67 |  |  | 23,235 |  |  | 83 |  |
Noninterest-bearing deposits | 20,904 |  |  | 11,316 |  |  | 8,666 |  |  | 8,543 |  |  | 8,236 |  |  | 9,588 |  |  | 85 |  |  | 12,668 |  |  | NM |
Other liabilities | 1,505 |  |  | 908 |  |  | 915 |  |  | 845 |  |  | 775 |  |  | 597 |  |  | 66 |  |  | 730 |  |  | 94 |  |
Total liabilities | 73,611 |  |  | 42,816 |  |  | 38,550 |  |  | 37,846 |  |  | 36,979 |  |  | 30,795 |  |  | 72 |  |  | 36,632 |  |  | 99 |  |
Shareholders' Equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Preferred stock | 468 |  |  | 150 |  |  | 96 |  |  | 96 |  |  | 96 |  |  | 318 |  |  | NM |  | 372 |  |  | NM |
Common stock | 345 |  |  | 195 |  |  | 195 |  |  | 195 |  |  | 195 |  |  | 150 |  |  | 77 |  |  | 150 |  |  | 77 |  |
Capital surplus | 5,041 |  |  | 2,941 |  |  | 2,935 |  |  | 2,928 |  |  | 2,934 |  |  | 2,100 |  |  | 71 |  |  | 2,107 |  |  | 72 |  |
Retained earnings5 | 2,025 |  |  | 1,672 |  |  | 1,687 |  |  | 1,766 |  |  | 1,695 |  |  | 353 |  |  | 21 |  |  | 330 |  |  | 19 |  |
Accumulated other comprehensive loss, net | (103) |  |  | (135) |  |  | (206) |  |  | (240) |  |  | (253) |  |  | 32 |  |  | 24 |  |  | 150 |  |  | 59 |  |
Combined shareholders' equity | 7,777 |  |  | 4,822 |  |  | 4,707 |  |  | 4,744 |  |  | 4,667 |  |  | 2,955 |  |  | 61 |  |  | 3,110 |  |  | 67 |  |
Noncontrolling interest | 295 |  |  | 295 |  |  | 295 |  |  | 295 |  |  | 295 |  |  | — |  |  | * |  | — |  |  | * |
Total shareholders' equity | 8,072 |  |  | 5,118 |  |  | 5,002 |  |  | 5,040 |  |  | 4,962 |  |  | 2,954 |  |  | 58 |  |  | 3,110 |  |  | 63 |  |
Total liabilities and shareholders' equity | $ | 81,683 |  |  | $ | 47,934 |  |  | $ | 43,552 |  |  | $ | 42,886 |  |  | $ | 41,941 |  |  | $ | 33,749 |  |  | 70 |  |  | $ | 39,742 |  |  | 95 |  |

Numbers may not foot due to rounding.
Certain previously reported amounts have been reclassified to agree with current presentation.
See footnote disclosures on page 22.
12

First Horizon National Corporation
FHN CONSOLIDATED NET INTEREST INCOME
Quarterly, Unaudited

|  |  |  |  |  |  |  |  |  |  | 3Q20 change vs. |  |  |  |  |  |  |  |
(In millions) | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q19 |  | 3Q19 |  | 2Q20 |  |  |  |  | 3Q19 |  |  |
|  |  |  |  |  |  |  |  |  |  | $ |  | % |  |  | $ |  | % |
Interest Income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans and leases, net of unearned income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial | $ | 419 |  |  | $ | 243 |  |  | $ | 257 |  |  | $ | 280 |  |  | $ | 281 |  |  | $ | 176 |  |  | 72 |  |  | $ | 138 |  |  | 49 |
Consumer | 141 |  |  | 65 |  |  | 71 |  |  | 76 |  |  | 78 |  |  | 76 |  |  | NM |  |  | 63 |  |  | 81 |
Loans and leases, net of unearned income | 560 |  |  | 308 |  |  | 329 |  |  | 356 |  |  | 358 |  |  | 252 |  |  | 82 |  |  | 202 |  |  | 56 |
Loans held-for-sale | 8 |  |  | 7 |  |  | 7 |  |  | 7 |  |  | 6 |  |  | 1 |  |  | 14 |  |  | 2 |  |  | 33 |
Investment securities | 25 |  |  | 25 |  |  | 28 |  |  | 29 |  |  | 29 |  |  | — |  |  | * |  |  | (4) |  |  | (14) |
Trading securities | 6 |  |  | 9 |  |  | 13 |  |  | 10 |  |  | 11 |  |  | (3) |  |  | (33) |  |  | (5) |  |  | (45) |
Interest-bearing deposits with banks | 1 |  |  | — |  |  | 2 |  |  | 2 |  |  | 3 |  |  | 1 |  |  | NM |  |  | (2) |  |  | (67) |
Federal funds sold and securities purchased under agreements | — |  |  | — |  |  | 2 |  |  | 3 |  |  | 3 |  |  | — |  |  | NM |  |  | (3) |  |  | NM |
Interest income | $ | 601 |  |  | $ | 349 |  |  | $ | 381 |  |  | $ | 407 |  |  | $ | 409 |  |  | $ | 252 |  |  | 72 |  |  | $ | 192 |  |  | 47 |
Interest Expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing deposits: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Savings | $ | 25 |  |  | $ | 13 |  |  | $ | 26 |  |  | $ | 30 |  |  | $ | 37 |  |  | $ | 12 |  |  | 92 |  |  | $ | (12) |  |  | (32) |
Time deposits | 10 |  |  | 9 |  |  | 14 |  |  | 19 |  |  | 22 |  |  | 1 |  |  | 11 |  |  | (12) |  |  | (55) |
Other interest-bearing deposits | 7 |  |  | 3 |  |  | 14 |  |  | 18 |  |  | 19 |  |  | 4 |  |  | NM |  |  | (12) |  |  | (63) |
Total interest-bearing deposits | 42 |  |  | 25 |  |  | 54 |  |  | 67 |  |  | 79 |  |  | 17 |  |  | 68 |  |  | (37) |  |  | (47) |
Trading liabilities | 1 |  |  | 1 |  |  | 3 |  |  | 3 |  |  | 3 |  |  | — |  |  | * |  |  | (2) |  |  | (67) |
Short-term borrowings | 1 |  |  | 1 |  |  | 10 |  |  | 12 |  |  | 12 |  |  | — |  |  | * |  |  | (11) |  |  | (92) |
Term borrowings | 22 |  |  | 14 |  |  | 8 |  |  | 10 |  |  | 14 |  |  | 8 |  |  | 57 |  |  | 8 |  |  | 57 |
Interest expense | 66 |  |  | 41 |  |  | 76 |  |  | 93 |  |  | 107 |  |  | 25 |  |  | 61 |  |  | (41) |  |  | (38) |
Net interest income - tax equivalent basis | 535 |  |  | 308 |  |  | 305 |  |  | 314 |  |  | 302 |  |  | 227 |  |  | 74 |  |  | 233 |  |  | 77 |
Fully taxable equivalent adjustment | (3) |  |  | (3) |  |  | (2) |  |  | (2) |  |  | (2) |  |  | — |  |  | * |  |  | (1) |  |  | (50) |
Net interest income | $ | 532 |  |  | $ | 305 |  |  | $ | 303 |  |  | $ | 311 |  |  | $ | 301 |  |  | $ | 227 |  |  | 74 |  |  | $ | 231 |  |  | 77 |

Net interest income adjusted to a fully taxable equivalent (“FTE”) basis assuming a statutory federal income tax of 21 percent and, where applicable, state income taxes.
Numbers may not foot due to rounding.
Certain previously reported amounts have been reclassified to agree with current presentation.
See footnote disclosures on page 22.
13

First Horizon National Corporation
FHN CONSOLIDATED AVERAGE BALANCE SHEET: YIELDS AND RATES
Quarterly, Unaudited

| 3Q20 |  |  | 2Q20 |  |  | 1Q20 |  |  | 4Q19 |  |  | 3Q19 |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Earning assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans and leases, net of unearned income: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial | 3.59 |  | % |  | 3.56 |  | % |  | 4.33 |  | % |  | 4.63 |  | % |  | 4.78 |  | %
Consumer | 4.11 |  |  |  | 4.00 |  |  |  | 4.33 |  |  |  | 4.51 |  |  |  | 4.55 |  |
Loans and leases, net of unearned income | 3.70 |  |  |  | 3.65 |  |  |  | 4.33 |  |  |  | 4.60 |  |  |  | 4.73 |  |
Loans held-for-sale | 3.36 |  |  |  | 3.61 |  |  |  | 4.67 |  |  |  | 4.85 |  |  |  | 5.33 |  |
Investment securities | 1.21 |  |  |  | 2.22 |  |  |  | 2.50 |  |  |  | 2.60 |  |  |  | 2.62 |  |
Trading securities | 2.08 |  |  |  | 2.48 |  |  |  | 2.91 |  |  |  | 3.01 |  |  |  | 3.06 |  |
Interest-bearing deposits with banks | 0.09 |  |  |  | 0.09 |  |  |  | 1.13 |  |  |  | 1.60 |  |  |  | 1.96 |  |
Federal funds sold and securities purchased under agreements to resell | 0.04 |  |  |  | (0.06) |  |  |  | 1.13 |  |  |  | 1.52 |  |  |  | 2.04 |  |
Interest income/total earning assets | 3.19 |  | % |  | 3.29 |  | % |  | 3.94 |  | % |  | 4.22 |  | % |  | 4.35 |  | %
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing deposits: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Savings | 0.38 |  | % |  | 0.36 |  | % |  | 0.87 |  | % |  | 1.04 |  | % |  | 1.26 |  | %
Time deposits | 0.72 |  |  |  | 1.45 |  |  |  | 1.80 |  |  |  | 2.06 |  |  |  | 2.15 |  |
Other interest-bearing deposits | 0.20 |  |  |  | 0.13 |  |  |  | 0.65 |  |  |  | 0.81 |  |  |  | 0.94 |  |
Total interest-bearing deposits | 0.36 |  |  |  | 0.38 |  |  |  | 0.90 |  |  |  | 1.10 |  |  |  | 1.29 |  |
Trading liabilities | 0.77 |  |  |  | 1.11 |  |  |  | 1.76 |  |  |  | 2.02 |  |  |  | 2.33 |  |
Short-term borrowings | 0.27 |  |  |  | 0.22 |  |  |  | 1.24 |  |  |  | 1.74 |  |  |  | 2.13 |  |
Term borrowings | 3.98 |  |  |  | 3.96 |  |  |  | 4.01 |  |  |  | 4.52 |  |  |  | 4.64 |  |
Interest expense/total interest-bearing liabilities | 0.51 |  |  |  | 0.54 |  |  |  | 1.05 |  |  |  | 1.29 |  |  |  | 1.52 |  |
Net interest spread | 2.68 |  | % |  | 2.75 |  | % |  | 2.89 |  | % |  | 2.93 |  | % |  | 2.83 |  | %
Effect of interest-free sources used to fund earning assets | 0.16 |  |  |  | 0.15 |  |  |  | 0.27 |  |  |  | 0.33 |  |  |  | 0.38 |  |
Net interest margin | 2.84 |  | % |  | 2.90 |  | % |  | 3.16 |  | % |  | 3.26 |  | % |  | 3.21 |  | %
Total loan yield | 3.70 |  | % |  | 3.65 |  | % |  | 4.33 |  | % |  | 4.60 |  | % |  | 4.73 |  | %
Total deposit cost | 0.25 |  | % |  | 0.27 |  | % |  | 0.67 |  | % |  | 0.82 |  | % |  | 0.96 |  | %
Total funding cost | 0.36 |  | % |  | 0.40 |  | % |  | 0.81 |  | % |  | 1.00 |  | % |  | 1.17 |  | %

Yields are adjusted to a FTE basis assuming a statutory federal income tax rate of 21 percent and, where applicable, state income taxes.
Earning assets yields are expressed net of unearned income.
Loan yields include loan fees, cash basis interest income, and loans on nonaccrual status.
Certain previously reported amounts have been reclassified to agree with current presentation.
See footnote disclosures on page 22.
14

First Horizon National Corporation

FHN CONSOLIDATED NONPERFORMING LOANS AND LEASES ("NPL") |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | As of |  |  |  |  |  |  |  |  |  | 3Q20 change vs. |  |  |  |  |  |  |
(In millions, except ratio data) |  | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q19 |  | 3Q19 |  | 2Q20 |  |  |  | 3Q19 |  |  |
|  |  |  |  |  |  |  |  |  |  |  | $ |  | % |  | $ |  | % |
Nonperforming loans and leases |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | $ | 213 |  |  | $ | 127 |  |  | $ | 96 |  |  | $ | 74 |  |  | $ | 77 |  |  | $ | 85 |  |  | 67 |  | $ | 136 |  |  | NM |
Commercial real estate |  | 51 |  |  | 2 |  |  | 2 |  |  | 2 |  |  | 2 |  |  | 49 |  |  | NM |  | 49 |  |  | NM |
Consumer real estate |  | 180 |  |  | 96 |  |  | 91 |  |  | 86 |  |  | 94 |  |  | 84 |  |  | 87 |  | 87 |  |  | 93 |
Credit card and other |  | 3 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3 |  |  | NM |  | 3 |  |  | NM |
Total nonperforming loans and leases |  | $ | 447 |  |  | $ | 226 |  |  | $ | 190 |  |  | $ | 162 |  |  | $ | 172 |  |  | $ | 221 |  |  | 98 |  | $ | 274 |  |  | NM |
Asset Quality Ratio |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Nonperforming loans and leases to loans and leases |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | 0.63 |  | % | 0.60 |  | % | 0.43 |  | % | 0.37 |  | % | 0.38 |  | % |  |  |  |  |  |  |  |
Commercial real estate |  | 0.41 | % | 0.04 |  | % | 0.05 |  | % | 0.04 |  | % | 0.05 |  | % |  |  |  |  |  |  |  |
Consumer real estate |  | 1.46 |  | % | 1.59 |  | % | 1.49 |  | % | 1.39 |  | % | 1.50 |  | % |  |  |  |  |  |  |  |
Credit card and other |  | 0.24 | % | 0.06 |  | % | 0.07 |  | % | 0.07 |  | % | 0.07 |  | % |  |  |  |  |  |  |  |
Total nonperforming loans and leases to loans and leases |  | 0.75 | % | 0.69 | % | 0.57 | % | 0.52 | % | 0.55 | % |  |  |  |  |  |  |  |

Numbers may not foot due to rounding.
15

First Horizon National Corporation

FHN CONSOLIDATED LOANS AND LEASES 90 DAYS OR MORE PAST DUE AND ACCRUING |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | As of |  |  |  |  |  |  |  |  |  | 3Q20 change vs. |  |  |  |  |  |  |
(In millions) |  | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q19 |  | 3Q19 |  | 2Q20 |  |  |  | 3Q19 |  |  |
|  |  |  |  |  |  |  |  |  |  |  | $ |  | % |  | $ |  | % |
Loans and leases 90 days or more past due and accruing |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 2 |  |  | $ | 2 |  |  | $ | — |  |  | (48) |  | $ | (2) |  |  | (93) |
Commercial real estate |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | NM |  | — |  |  | NM |
Consumer real estate |  | 14 |  |  | 13 |  |  | 12 |  |  | 18 |  |  | 18 |  |  | 1 |  |  | 6 |  | (4) |  |  | (23) |
Credit card and other |  | 1 |  |  | 1 |  |  | 2 |  |  | 2 |  |  | 1 |  |  | (1) |  |  | (35) |  | — |  |  | (33) |
Total loans and leases 90 days or more past due and accruing |  | $ | 15 |  |  | $ | 14 |  |  | $ | 14 |  |  | $ | 22 |  |  | $ | 21 |  |  | $ | — |  |  | 1 |  | $ | (6) |  |  | (31) |

Numbers may not foot due to rounding.
16

First Horizon National Corporation

FHN CONSOLIDATED NET CHARGE-OFFS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | As of |  |  |  |  |  |  |  |  |  | 3Q20 change vs. |  |  |  |  |  |  |
(In millions, except ratio data) |  | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q19 |  | 3Q19 |  | 2Q20 |  |  |  | 3Q19 |  |  |
Charge-off, Recoveries and Related Ratios |  |  |  |  |  |  |  |  |  |  |  | $ |  | % |  | $ |  | % |
Gross Charge-offs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | $ | 69 |  |  | $ | 18 |  |  | $ | 7 |  |  | $ | 5 |  |  | $ | 19 |  |  | $ | 51 |  |  | NM |  | $ | 51 |  |  | NM |
Commercial real estate |  | 4 |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | 3 |  |  | NM |  | 3 |  |  | NM |
Consumer real estate |  | 2 |  |  | 2 |  |  | 2 |  |  | 2 |  |  | 1 |  |  | — |  |  | (7) |  | — |  |  | 25 |
Credit card and other |  | 4 |  |  | 3 |  |  | 4 |  |  | 4 |  |  | 4 |  |  | 1 |  |  | 31 |  | — |  |  | (10) |
Total gross charge-offs |  | $ | 78 |  |  | $ | 23 |  |  | $ | 13 |  |  | $ | 12 |  |  | $ | 24 |  |  | $ | 55 |  |  | NM |  | $ | 54 |  |  | NM |
Gross Recoveries |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | $ | (3) |  |  | $ | (1) |  |  | $ | (1) |  |  | $ | (2) |  |  | $ | (3) |  |  | $ | (2) |  |  | NM |  | $ | — |  |  | 1 |
Commercial real estate |  | (2) |  |  | — |  |  | (1) |  |  | — |  |  | — |  |  | (2) |  |  | NM |  | (2) |  |  | NM |
Consumer real estate |  | (5) |  |  | (4) |  |  | (4) |  |  | (6) |  |  | (5) |  |  | (1) |  |  | (33) |  | — |  |  | (5) |
Credit card and other |  | (1) |  |  | (1) |  |  | (1) |  |  | (1) |  |  | (1) |  |  | — |  |  | 8 |  | — |  |  | 21 |
Total gross recoveries |  | $ | (12) |  |  | $ | (6) |  |  | $ | (6) |  |  | $ | (9) |  |  | $ | (10) |  |  | $ | (5) |  |  | (87) |  | $ | (2) |  |  | (21) |
Net Charge-offs (Recoveries) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | $ | 66 |  |  | $ | 17 |  |  | $ | 6 |  |  | $ | 3 |  |  | $ | 15 |  |  | $ | 49 |  |  | NM |  | $ | 51 |  |  | NM |
Commercial real estate |  | 1 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | NM |  | 1 |  |  | NM |
Consumer real estate |  | (3) |  |  | (2) |  |  | (1) |  |  | (3) |  |  | (4) |  |  | (1) |  |  | (72) |  | — |  |  | 3 |
Credit card and other |  | 3 |  |  | 2 |  |  | 3 |  |  | 3 |  |  | 3 |  |  | 1 |  |  | 58 |  | — |  |  | (5) |
Total net charge-offs |  | $ | 67 |  |  | $ | 17 |  |  | $ | 7 |  |  | $ | 3 |  |  | $ | 15 |  |  | $ | 50 |  |  | NM |  | $ | 52 |  |  | NM |
Annualized Net Charge-off (Recovery) Rates |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | 0.77 | % |  | 0.30 | % |  | 0.12 | % |  | 0.07 | % |  | 0.32 | % |  |  |  |  |  |  |  |  |
Commercial real estate |  | 0.04 | % |  | (0.01) | % |  | — | % |  | (0.01) | % |  | 0.02 | % |  |  |  |  |  |  |  |  |
Consumer real estate |  | (0.11) | % |  | (0.13) | % |  | (0.08) | % |  | (0.21) | % |  | (0.23) | % |  |  |  |  |  |  |  |  |
Credit card and other |  | 0.83 | % |  | 1.35 | % |  | 2.12 | % |  | 2.29 | % |  | 2.11 | % |  |  |  |  |  |  |  |  |
Total loans and leases |  | 0.44 | % |  | 0.20 | % |  | 0.10 | % |  | 0.04 | % |  | 0.19 | % |  |  |  |  |  |  |  |  |

Numbers may not foot due to rounding.
17

First Horizon National Corporation

FHN CONSOLIDATED ALLOWANCE FOR LOAN AND LEASE LOSSES AND RESERVE FOR UNFUNDED COMMITMENTS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | As of |  |  |  |  |  |  |  |  |  | 3Q20 Changes vs. |  |  |  |  |  |  |
(In millions, except ratio data) |  | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q19 |  | 3Q19 |  | 2Q20 |  |  |  | 3Q19 |  |  |
Summary of Changes in the Components of the Allowance For Credit Losses |  |  |  |  |  |  |  |  |  |  |  | $ |  | % |  | $ |  | % |
Allowance for loan and lease losses - beginning |  | $ | 538 |  |  | $ | 444 |  |  | $ | 200 |  |  | $ | 193 |  |  | $ | 193 |  |  | $ | 93 |  |  | 21 |  | $ | 345 |  |  | NM |
Cumulative effect of change in accounting principle: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | — |  |  | — |  |  | 19 |  |  | — |  |  | — |  |  | — |  |  | NM |  | — |  |  | NM |
Commercial real estate |  | — |  |  | — |  |  | (7) |  |  | — |  |  | — |  |  | — |  |  | NM |  | — |  |  | NM |
Consumer real estate |  | — |  |  | — |  |  | 93 |  |  | — |  |  | — |  |  | — |  |  | NM |  | — |  |  | NM |
Credit card and other |  | — |  |  | — |  |  | 2 |  |  | — |  |  | — |  |  | — |  |  | NM |  | — |  |  | NM |
Total cumulative effect of change in accounting principles |  | — |  |  | — |  |  | 106 |  |  | — |  |  | — |  |  | — |  |  | NM |  | — |  |  | NM |
Allowance for loan and lease losses - beginning, adjusted |  | $ | 538 |  |  | $ | 444 |  |  | $ | 307 |  |  | $ | 193 |  |  | $ | 193 |  |  | $ | 93 |  |  | 21 |  | $ | 345 |  |  | NM |
Acquired purchased credit deteriorated allowance for loan and lease losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | 138 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 138 |  |  | NM |  | 138 |  |  | NM |
Commercial real estate |  | 100 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 100 |  |  | NM |  | 100 |  |  | NM |
Consumer real estate |  | 44 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 44 |  |  | NM |  | 44 |  |  | NM |
Credit card and other |  | 5 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 5 |  |  | NM |  | 5 |  |  | NM |
Total acquired purchased credit deteriorated allowance for loan and lease losses |  | 287 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 287 |  |  | NM |  | 287 |  |  | NM |
Charge-offs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | (69) |  |  | (18) |  |  | (7) |  |  | (5) |  |  | (19) |  |  | (51) |  |  | NM |  | (51) |  |  | NM |
Commercial real estate |  | (4) |  |  | — |  |  | (1) |  |  | — |  |  | — |  |  | (3) |  |  | NM |  | (3) |  |  | NM |
Consumer real estate |  | (2) |  |  | (2) |  |  | (2) |  |  | (2) |  |  | (1) |  |  | — |  |  | 7 |  | — |  |  | (25) |
Credit card and other |  | (4) |  |  | (3) |  |  | (4) |  |  | (4) |  |  | (4) |  |  | (1) |  |  | (31) |  | — |  |  | 10 |
Total charge-offs |  | (78) |  |  | (23) |  |  | (13) |  |  | (12) |  |  | (24) |  |  | (55) |  |  | NM |  | (54) |  |  | NM |
Recoveries: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | 3 |  |  | 1 |  |  | 1 |  |  | 2 |  |  | 3 |  |  | 2 |  |  | NM |  | — |  |  | (1) |
Commercial real estate |  | 2 |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | 2 |  |  | NM |  | 2 |  |  | NM |
Consumer real estate |  | 5 |  |  | 4 |  |  | 4 |  |  | 6 |  |  | 5 |  |  | 1 |  |  | 33 |  | — |  |  | 5 |
Credit card and other |  | 1 |  |  | 1 |  |  | 1 |  |  | 1 |  |  | 1 |  |  | — |  |  | (8) |  | — |  |  | (21) |
Total Recoveries |  | 12 |  |  | 6 |  |  | 6 |  |  | 9 |  |  | 10 |  |  | 5 |  |  | 87 |  | 2 |  |  | 21 |
Provision for loan and lease losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I)* |  | 99 |  |  | 81 |  |  | 119 |  |  | 12 |  |  | 13 |  |  | 18 |  |  | 22 |  | 86 |  |  | NM |
Commercial real estate* |  | 52 |  |  | 10 |  |  | 19 |  |  | — |  |  | 3 |  |  | 42 |  |  | NM |  | 49 |  |  | NM |
Consumer real estate* |  | 74 |  |  | 19 |  |  | — |  |  | (6) |  |  | (4) |  |  | 55 |  |  | NM |  | 78 |  |  | NM |
Credit card and other* |  | 5 |  |  | — |  |  | 7 |  |  | 3 |  |  | 3 |  |  | 5 |  |  | NM |  | 2 |  |  | 62 |
Total provision for loan and lease losses*: |  | 230 |  |  | 110 |  |  | 145 |  |  | 10 |  |  | 15 |  |  | 120 |  |  | NM |  | 215 |  |  | NM |
Allowance for loan and lease losses - ending |  | $ | 988 |  |  | $ | 538 |  |  | $ | 444 |  |  | $ | 200 |  |  | $ | 193 |  |  | $ | 450 |  |  | 84 |  | $ | 795 |  |  | NM |
Reserve for unfunded commitments - beginning |  | $ | 50 |  |  | $ | 39 |  |  | $ | 6 |  |  | $ | 7 |  |  | $ | 8 |  |  | $ | 11 |  |  | 28 |  | $ | 43 |  |  | NM |
Cumulative effect of change in accounting principle |  | — |  |  | — |  |  | 24 |  |  | — |  |  | — |  |  | — |  |  | NM |  | — |  |  | NM |
Acquired reserve for unfunded commitments |  | 41 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 41 |  |  | NM |  | 41 |  |  | NM |
Provision for unfunded commitments |  | (3) |  |  | 11 |  |  | 9 |  |  | (1) |  |  | (1) |  |  | (14) |  |  | NM |  | (2) |  |  | NM |
Reserve for unfunded commitments - ending |  | $ | 89 |  |  | $ | 50 |  |  | $ | 39 |  |  | $ | 6 |  |  | $ | 7 |  |  | $ | 38 |  |  | 76 |  | $ | 82 |  |  | NM |
Total allowance for credit losses- ending |  | $ | 1,077 |  |  | $ | 588 |  |  | $ | 484 |  |  | $ | 206 |  |  | $ | 200 |  |  | $ | 488 |  |  | 83 |  | $ | 877 |  |  | NM |

Numbers may not foot due to rounding. * 3Q20 includes $30 million, $44 million, $70 million, and $3 million recognized within the C&I, Commercial real estate, Consumer real estate, and Credit card and other loan and leases portfolios, respectively, of provision expense associated with the recognition of Non-PCD provision related to mergers/acquisitions.
18

First Horizon National Corporation

FHN CONSOLIDATED ASSET QUALITY RATIOS - ALLOWANCE FOR LOAN AND LEASE LOSSES |  |  |  |  |  |  |  |  |  |  |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |
|  | As of |  |  |  |  |  |  |  |  |
|  | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q19 |  | 3Q19 |
Allowance for loans and lease losses to loans and leases |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | 1.45 |  | % | 1.49 |  | % | 1.15 |  | % | 0.61 |  | % | 0.56 |  | %
Commercial real estate |  | 1.66 |  | % | 1.19 |  | % | 1.03 |  | % | 0.83 |  | % | 0.84 |  | %
Consumer real estate |  | 2.15 |  | % | 2.38 |  | % | 2.01 |  | % | 0.46 |  | % | 0.49 |  | %
Credit card and other |  | 2.11 |  | % | 4.03 |  | % | 3.91 |  | % | 2.68 |  | % | 2.58 |  | %
Total allowance for loans and lease losses to loans and leases |  | 1.65 |  | % | 1.64 |  | % | 1.33 |  | % | 0.64 |  | % | 0.62 |  | %
Allowance for loans and lease losses to nonperforming loans and leases |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | 230 |  | % | 250 |  | % | 265 |  | % | 165 |  | % | 149 |  | %
Commercial real estate |  | 407 |  | % | 2,771 |  | % | 2,175 |  | % | 1,979 |  | % | 1,839 |  | %
Consumer real estate |  | 147 |  | % | 149 |  | % | 135 |  | % | 33 |  | % | 33 |  | %
Credit card and other |  | 890 |  | % | 7,114 |  | % | 5,368 |  | % | 3,975 |  | % | 3,691 |  | %
Total allowance for loans and lease losses to nonperforming loans and leases |  | 221 |  | % | 238 |  | % | 234 |  | % | 124 |  | % | 112 |  | %
Allowance for loans and lease losses to net charge offs |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | 186 |  | % | 463 |  | % | 1,088 |  | % | 925 |  | % | 187 |  | %
Commercial real estate |  | 4,031 |  | % | (15,040) |  | % | 143,661 |  | % | (11,151) |  | % | 4,770 |  | %
Consumer real estate |  | (1,919) |  | % | (1,770) |  | % | (2,456) |  | % | (214) |  | % | (216) |  | %
Credit card and other |  | 255 |  | % | 282 |  | % | 183 |  | % | 114 |  | % | 121 |  | %
Total allowance for loans and lease losses to net charge offs |  | 373 |  | % | 805 |  | % | 1,533 |  | % | 1,776 |  | % | 333 |  | %

19

First Horizon National Corporation
FHN REGIONAL BANKING
Quarterly, Unaudited

|  |  |  |  |  |  |  |  |  |  | 3Q20 change vs. |  |  |  |  |  |  |  |
| 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q19 |  | 3Q19 |  | 2Q20 |  |  |  |  | 3Q19 |  |  |
|  |  |  |  |  |  |  |  |  |  | $/bp |  | % |  |  | $/bp |  | % |
Income Statement (millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income | $ | 584 |  |  | $ | 350 |  |  | $ | 300 |  |  | $ | 311 |  |  | $ | 302 |  |  | $ | 234 |  |  | 67 |  |  |  | $ | 282 |  |  | 93 |  |
Noninterest income | 172 |  |  | 79 |  |  | 82 |  |  | 90 |  |  | 86 |  |  | 93 |  |  | NM |  |  | 86 |  |  | NM |
Total revenue | 756 |  |  | 429 |  |  | 382 |  |  | 400 |  |  | 388 |  |  | 327 |  |  | 76 |  |  |  | 368 |  |  | 95 |  |
Noninterest expense | 374 |  |  | 192 |  |  | 203 |  |  | 203 |  |  | 194 |  |  | 182 |  |  | 95 |  |  |  | 180 |  |  | 93 |  |
Pre-provision net revenue2 | 383 |  |  | 236 |  |  | 179 |  |  | 197 |  |  | 194 |  |  | 147 |  |  | 62 |  |  |  | 189 |  |  | 97 |  |
Provision for credit losses3 | 227 |  |  | 120 |  |  | 155 |  |  | 14 |  |  | 20 |  |  | 107 |  |  | 89 |  |  |  | 207 |  |  | NM |
Income before income tax expense | 155 |  |  | 117 |  |  | 25 |  |  | 183 |  |  | 175 |  |  | 38 |  |  | 32 |  |  |  | (20) |  |  | (11) |  |
Income tax expense | 35 |  |  | 27 |  |  | 4 |  |  | 43 |  |  | 42 |  |  | 8 |  |  | 30 |  |  |  | (7) |  |  | (17) |  |
Net income | $ | 121 |  |  | $ | 90 |  |  | $ | 20 |  |  | $ | 140 |  |  | $ | 133 |  |  | $ | 31 |  |  | 34 |  |  |  | $ | (12) |  |  | (9) |  |
Average Balances (billions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total loans and leases | $ | 59.11 |  |  | $ | 33.11 |  |  | $ | 29.61 |  |  | $ | 29.73 |  |  | $ | 28.97 |  |  | $ | 26.00 |  |  | 79 |  |  |  | $ | 30.14 |  |  | NM |
Interest-earning assets | 59.45 |  |  | 33.16 |  |  | 29.66 |  |  | 29.78 |  |  | 29.01 |  |  | 26.29 |  |  | 79 |  |  |  | 30.44 |  |  | NM |
Total assets | 64.38 |  |  | 35.74 |  |  | 32.18 |  |  | 32.46 |  |  | 31.63 |  |  | 28.64 |  |  | 80 |  |  |  | 32.75 |  |  | NM |
Total deposits | 63.47 |  |  | 33.79 |  |  | 30.58 |  |  | 30.42 |  |  | 30.05 |  |  | 29.68 |  |  | 88 |  |  |  | 33.42 |  |  | NM |
Key Metrics |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest margin6 | 3.92 | % |  | 4.27 | % |  | 4.09 | % |  | 4.17 | % |  | 4.16 | % |  | (35) |  |  | (8) |  |  |  | (24) |  |  | (6) |  |
Efficiency ratio | 49.40 |  |  | 44.87 |  |  | 53.06 |  |  | 50.70 |  |  | 49.94 |  |  | 453 |  |  | 10 |  |  |  | (54) |  |  | (1) |  |
Loans-to-deposits ratio (period-end balances) | 0.91 |  |  | 0.93 |  |  | 1.06 |  |  | 0.98 |  |  | 1.01 |  |  | (2) |  |  | (2) |  |  |  | (10) |  |  | (10) |  |
Loans-to-deposits ratio (average-end balances) | 0.93 |  |  | 0.98 |  |  | 0.97 |  |  | 0.98 |  |  | 0.96 |  |  | (5) |  |  | (5) |  |  |  | (3) |  |  | (3) |  |
Return on average assets (annualized) | 0.75 |  |  | 1.02 |  |  | 0.26 |  |  | 1.71 |  |  | 1.67 |  |  | (27) |  |  | (26) |  |  |  | (92) |  |  | (55) |  |
Return on allocated equity7 | 14.74 |  |  | 11.64 |  |  | 2.72 |  |  | 18.14 |  |  | 17.52 |  |  | 310 |  |  | 27 |  |  |  | (278) |  |  | (16) |  |
Financial center locations | 493 |  |  | 269 |  |  | 269 |  |  | 269 |  |  | 270 |  |  | 224 |  |  | 83 |  |  |  | 223 |  |  | 83 |  |

Numbers may not add to total due to rounding.
Certain previously reported amounts have been reclassified to agree with current presentation.
See footnote disclosures on page 22.
20

First Horizon National Corporation
FHN FIXED INCOME
Quarterly, Unaudited

|  |  |  |  |  |  |  |  |  |  | 3Q20 change vs. |  |  |  |  |  |  |
| 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q19 |  | 3Q19 |  | 2Q20 |  |  |  | 3Q19 |  |  |
|  |  |  |  |  |  |  |  |  |  | $/bp |  | % |  | $/bp |  | % |
Income Statement (millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income | $ | 12 |  |  | $ | 14 |  |  | $ | 11 |  |  | $ | 7 |  |  | $ | 5 |  |  | $ | (2) |  |  | (14) |  |  | $ | 7 |  |  | NM |
Noninterest income | 111 |  |  | 113 |  |  | 96 |  |  | 81 |  |  | 78 |  |  | (2) |  |  | (2) |  |  | 33 |  |  | 42 |  |
Total revenue | 122 |  |  | 127 |  |  | 107 |  |  | 88 |  |  | 83 |  |  | (5) |  |  | (4) |  |  | 39 |  |  | 47 |  |
Noninterest expense | 67 |  |  | 83 |  |  | 81 |  |  | 62 |  |  | 68 |  |  | (16) |  |  | (19) |  |  | (1) |  |  | (1) |  |
Income before income tax expense | 55 |  |  | 44 |  |  | 26 |  |  | 26 |  |  | 16 |  |  | 11 |  |  | 25 |  |  | 39 |  |  | NM |
Income tax expense | 13 |  |  | 11 |  |  | 6 |  |  | 6 |  |  | 4 |  |  | 2 |  |  | 18 |  |  | 9 |  |  | NM |
Net income | $ | 42 |  |  | $ | 33 |  |  | $ | 19 |  |  | $ | 20 |  |  | $ | 12 |  |  | $ | 9 |  |  | 27 |  |  | $ | 30 |  |  | NM |
Average Balance Sheet (billions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest earning assets | $ | 2.34 |  |  | $ | 2.63 |  |  | $ | 3.27 |  |  | $ | 2.57 |  |  | $ | 2.47 |  |  | $ | (0.29) |  |  | (11) |  |  | $ | (0.13) |  |  | (5) |  |
Total assets | 3.00 |  |  | 3.26 |  |  | 3.76 |  |  | 2.99 |  |  | 2.88 |  |  | (0.26) |  |  | (8) |  |  | 0.12 |  |  | 4 |  |
Key Metrics |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed income product average daily revenue (thousands) | $ | 1,545 |  |  | $ | 1,592 |  |  | $ | 1,264 |  |  | $ | 1,061 |  |  | $ | 994 |  |  | (47) |  |  | (3) |  |  | 551 |  |  | 55 |  |
Net interest margin6 | 2.00 | % |  | 2.07 | % |  | 1.36 | % |  | 1.15 | % |  | 0.88 | % |  | (7) |  |  | (3) |  |  | 112 |  |  | NM |
Efficiency ratio | 55.05 |  |  | 65.49 |  |  | 76.02 |  |  | 70.23 |  |  | 81.31 |  |  | (1,044) |  |  | (16) |  |  | (2,626) |  |  | (32) |  |
Return on average assets | 5.51 |  |  | 4.08 |  |  | 2.08 |  |  | 2.65 |  |  | 1.63 |  |  | 143 |  |  | 35 |  |  | 388 |  |  | NM |
Return on allocated equity7 | 82.03 |  |  | 65.97 |  |  | 37.19 |  |  | 39.91 |  |  | 23.60 |  |  | 1,606 |  |  | 24 |  |  | 5,843 |  |  | NM |

FHN CORPORATE
Quarterly, Unaudited

|  |  |  |  |  |  |  |  |  |  | 3Q20 change vs. |  |  |  |  |  |  |
| 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q19 |  | 3Q19 |  | 2Q20 |  |  |  | 3Q19 |  |  |
|  |  |  |  |  |  |  |  |  |  | $ |  | % |  | $ |  | % |
Income Statement (millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income/(expense) | $ | (69) |  |  | $ | (63) |  |  | $ | (13) |  |  | $ | (13) |  |  | $ | (13) |  |  | $ | (6) |  |  | (10) |  |  | $ | (56) |  |  | NM |
Noninterest income1 | 540 |  |  | 13 |  |  | (4) |  |  | 11 |  |  | 7 |  |  | 527 |  |  | NM |  | 533 |  |  | NM |
Total revenues | 470 |  |  | (50) |  |  | (17) |  |  | (1) |  |  | (6) |  |  | 520 |  |  | NM |  | 476 |  |  | NM |
Noninterest expense | 143 |  |  | 42 |  |  | 14 |  |  | 58 |  |  | 42 |  |  | 101 |  |  | NM |  | 101 |  |  | NM |
Income/(loss) before income taxes | 328 |  |  | (93) |  |  | (31) |  |  | (60) |  |  | (48) |  |  | 421 |  |  | NM |  | 376 |  |  | NM |
Income tax expense (benefit) | (47) |  |  | (25) |  |  | (6) |  |  | (15) |  |  | (12) |  |  | (22) |  |  | (88) |  |  | (35) |  |  | NM |
Net income/(loss) | $ | 374 |  |  | $ | (68) |  |  | $ | (25) |  |  | $ | (44) |  |  | $ | (37) |  |  | $ | 442 |  |  | NM |  | $ | 411 |  |  | NM |
Average Balance Sheet (billions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest bearing assets | 12.47 |  |  | 6.12 |  |  | 5.01 |  |  | 4.98 |  |  | 4.92 |  |  | $ | 6.35 |  |  | NM |  | $ | 7.55 |  |  | NM |
Total assets | 13.60 |  |  | 8.16 |  |  | 6.78 |  |  | 6.53 |  |  | 6.43 |  |  | 5.44 |  |  | 67 |  |  | 7.17 |  |  | NM |

Numbers may not foot due to rounding. Certain previously reported amounts have been reclassified to agree with current presentation. See footnote disclosures on page 22.
21

First Horizon National Corporation
FHN NON-STRATEGIC
Quarterly, Unaudited

|  |  |  |  |  |  |  |  |  |  | 3Q20 change vs. |  |  |  |  |  |  |
| 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q19 |  | 3Q19 |  | 2Q20 |  |  |  | 3Q19 |  |  |
|  |  |  |  |  |  |  |  |  |  | $/bp |  | % |  | $/bp |  | % |
Income Statement (millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income | $ | 6 |  |  | $ | 6 |  |  | $ | 5 |  |  | $ | 6 |  |  | $ | 6 |  |  | $ | — |  |  | * |  | $ | — |  |  | * |
Noninterest income | — |  |  | 1 |  |  | 1 |  |  | 1 |  |  | 1 |  |  | (1) |  |  | NM |  | (1) |  |  | NM |
Total revenue | 6 |  |  | 6 |  |  | 6 |  |  | 7 |  |  | 7 |  |  | — |  |  | * |  | (1) |  |  | (14) |  |
Noninterest expense | 3 |  |  | 3 |  |  | 4 |  |  | 5 |  |  | 4 |  |  | — |  |  | * |  | (1) |  |  | (25) |  |
Pre-provision net revenue2 | 3 |  |  | 3 |  |  | 2 |  |  | 2 |  |  | 2 |  |  | — |  |  | * |  | 1 |  |  | 50 |  |
Provision for credit losses3 | — |  |  | 2 |  |  | — |  |  | (5) |  |  | (5) |  |  | (2) |  |  | NM |  | 5 |  |  | NM |
Income before income tax expense | 3 |  |  | 1 |  |  | 2 |  |  | 8 |  |  | 8 |  |  | 2 |  |  | NM |  | (5) |  |  | (63) |  |
Income tax expense | 1 |  |  | — |  |  | 1 |  |  | 2 |  |  | 2 |  |  | 1 |  |  | NM |  | (1) |  |  | (50) |  |
Net income | $ | 2 |  |  | $ | 1 |  |  | $ | 2 |  |  | $ | 6 |  |  | $ | 6 |  |  | $ | 1 |  |  | NM |  | $ | (4) |  |  | (67) |  |
Average Balance Sheet (billions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total assets | 0.71 |  |  | 0.77 |  |  | 0.83 |  |  | 0.91 |  |  | 0.99 |  |  | $ | (0.06) |  |  | (8) |  |  | $ | (0.28) |  |  | (28) |  |
Key Statistics |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest margin6 | 3.22 | % |  | 2.83 | % |  | 2.41 | % |  | 2.67 | % |  | 2.47 | % |  | 39 |  |  | 14 |  |  | 75 |  |  | 30 |  |
Efficiency ratio | 50.95 |  |  | 53.62 |  |  | 65.26 |  |  | 66.85 |  |  | 65.85 |  |  | (267) |  |  | (5) |  |  | (15) |  |  | (23) |  |
Return on average assets | 1.39 |  |  | 0.50 |  |  | 0.89 |  |  | 2.51 |  |  | 2.35 |  |  | 89 |  |  | NM |  | (1) |  |  | (41) |  |
Return on allocated equity7 | 28.75 |  |  | 9.38 |  |  | 15.00 |  |  | 37.00 |  |  | 32.08 |  |  | 1,937 |  |  | NM |  | (3) |  |  | (10) |  |

Numbers may not foot due to rounding
Certain previously reported amounts have been reclassified to agree with current presentation.
FOOTNOTES
1 3Q20 includes a $532 million purchase accounting gain from FHN's merger with IBERIABANK.
2 Pre-provision net revenue is a non-GAAP measure and is reconciled to income before income taxes (GAAP) in the table.
3 Beginning in 3Q20 FHN began recording credit expense on unfunded commitments as a component of provision for credit losses. Prior period amounts have been reclassified from other noninterest expense.
4 Represents a non-GAAP measure and is reconciled to the nearest GAAP measure in the non-GAAP to GAAP reconciliations beginning on page 23.
5 Effective 1/1/2020 FHN adopted ASU 2016-13, "Measurement of Credit Losses on Financial Instruments," (CECL) which resulted in an increase to the Allowance for loan and lease losses of $106 million and a net decrease to retained earnings of $96 million.
6 Net interest margin is computed using total NII adjusted for FTE assuming a statutory federal income tax rate of 21 percent, and, where applicable state taxes.
7 Segment equity is allocated based on an internal allocation methodology.
22

First Horizon National Corporation

FHN NON-GAAP TO GAAP RECONCILIATION
Quarterly, Unaudited

(In millions, except per share data) | 3Q20 |  | 2Q20 |  | 4Q19 |  | 4Q19 |  | 3Q19 |
Tangible Common Equity (Non-GAAP) |  |  |  |  |  |  |  |  |  |
(A) Total equity (GAAP) | $ | 8,144 |  |  | $ | 5,208 |  |  | $ | 5,056 |  |  | $ | 5,076 |  |  | $ | 4,996 |  |
Less: Noncontrolling interest (a) | 295 |  |  | 295 |  |  | 295 |  |  | 295 |  |  | 295 |  |
Less: Preferred stock (a) | 470 |  |  | 240 |  |  | 96 |  |  | 96 |  |  | 96 |  |
(B) Total common equity | $ | 7,378 |  |  | $ | 4,673 |  |  | $ | 4,665 |  |  | $ | 4,685 |  |  | $ | 4,605 |  |
Less: Intangible assets (GAAP) (b) | 1,876 |  |  | 1,552 |  |  | 1,558 |  |  | 1,563 |  |  | 1,569 |  |
(C) Tangible common equity (Non-GAAP) | $ | 5,502 |  |  | $ | 3,120 |  |  | $ | 3,107 |  |  | $ | 3,122 |  |  | $ | 3,036 |  |
Tangible Assets (Non-GAAP) |  |  |  |  |  |  |  |  |  |
(D) Total assets (GAAP) | $ | 83,030 |  |  | $ | 48,645 |  |  | $ | 47,197 |  |  | $ | 43,311 |  |  | $ | 43,718 |  |
Less: Intangible assets (GAAP) (b) | 1,876 |  |  | 1,552 |  |  | 1,558 |  |  | 1,563 |  |  | 1,569 |  |
(E) Tangible assets (Non-GAAP) | $ | 81,154 |  |  | $ | 47,092 |  |  | $ | 45,640 |  |  | $ | 41,748 |  |  | $ | 42,148 |  |
Period-end Shares Outstanding |  |  |  |  |  |  |  |  |  |
(F) Period-end shares outstanding | 555 |  |  | 312 |  |  | 312 |  |  | 311 |  |  | 311 |  |
Ratios |  |  |  |  |  |  |  |  |  |
(A)/(D) Total equity to total assets (GAAP) | 9.81 |  | % | 10.71 |  | % | 10.71 |  | % | 11.72 |  | % | 11.43 |  | %
(C)/(E) Tangible common equity to tangible assets (“TCE/TA”) (Non-GAAP) | 6.78 |  | % | 6.63 |  | % | 6.81 |  | % | 7.48 |  | % | 7.20 |  | %
(B)/(F) Book value per common share (GAAP) | $ | 13.30 |  |  | $ | 14.96 |  |  | $ | 14.96 |  |  | $ | 15.04 |  |  | $ | 14.80 |  |
(C)/(F) Tangible book value per common share (Non-GAAP) | $ | 9.92 |  |  | $ | 9.99 |  |  | $ | 9.96 |  |  | $ | 10.02 |  |  | $ | 9.76 |  |

(a) Included in Total equity on the Consolidated Balance Sheet.
(b) Includes goodwill and other intangible assets, net of amortization.
Numbers may not foot due to rounding.

23

First Horizon National Corporation

FHN NON-GAAP TO GAAP RECONCILIATION |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | 3Q20 |  |  |  | 2Q20 |  |  |  | 1Q20 |  |  |  | 4Q19 |  |  |  | 3Q19 |  |  |
(In millions, except per share data) |  | GAAP | Notable Items | Non-GAAP |  | GAAP | Notable Items | Non-GAAP |  | GAAP | Notable Items | Non-GAAP |  | GAAP | Notable Items | Non-GAAP |  | GAAP | Notable Items | Non-GAAP |
Interest income |  | $ | 598 |  | $ | — |  | $ | 598 |  |  | $ | 347 |  | $ | — |  | $ | 347 |  |  | $ | 378 |  | $ | — |  | $ | 378 |  |  | $ | 404 |  | $ | — |  | $ | 404 |  |  | $ | 407 |  | $ | — |  | $ | 407 |  |
Interest expense |  | 66 |  | — |  | 66 |  |  | 41 |  | — |  | 41 |  |  | 76 |  | — |  | 76 |  |  | 93 |  | — |  | 93 |  |  | 107 |  | — |  | 107 |  |
Net interest income |  | 532 |  | — |  | 532 |  |  | 305 |  | — |  | 305 |  |  | 303 |  | — |  | 303 |  |  | 311 |  | — |  | 311 |  |  | 301 |  | — |  | 301 |  |
Noninterest income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed income |  | 111 |  | — |  | 111 |  |  | 112 |  | — |  | 112 |  |  | 96 |  | — |  | 96 |  |  | 81 |  | — |  | 81 |  |  | 78 |  | — |  | 78 |  |
Mortgage banking and title |  | 66 |  | — |  | 66 |  |  | 4 |  | — |  | 4 |  |  | 2 |  | — |  | 2 |  |  | 4 |  | — |  | 4 |  |  | 2 |  | — |  | 2 |  |
Brokerage, trust, and insurance |  | 30 |  | — |  | 30 |  |  | 22 |  | — |  | 22 |  |  | 23 |  | — |  | 23 |  |  | 22 |  | — |  | 22 |  |  | 22 |  | — |  | 22 |  |
Service charges and fees |  | 50 |  | — |  | 50 |  |  | 35 |  | — |  | 35 |  |  | 36 |  | — |  | 36 |  |  | 39 |  | — |  | 39 |  |  | 40 |  | — |  | 40 |  |
Card and digital banking fees |  | 17 |  | — |  | 17 |  |  | 12 |  | — |  | 12 |  |  | 12 |  | — |  | 12 |  |  | 14 |  | — |  | 14 |  |  | 13 |  | — |  | 13 |  |
Deferred compensation income |  | 4 |  | — |  | 4 |  |  | 8 |  | — |  | 8 |  |  | (10) |  | — |  | (10) |  |  | 3 |  | — |  | 3 |  |  | — |  | — |  | — |  |
Other noninterest income |  | 546 |  | (532) |  | 14 |  |  | 12 |  | — |  | 12 |  |  | 15 |  | — |  | 15 |  |  | 20 |  | — |  | 20 |  |  | 17 |  | — |  | 17 |  |
Total noninterest income |  | 823 |  | (532) |  | 291 |  |  | 206 |  | — |  | 206 |  |  | 175 |  | — |  | 175 |  |  | 183 |  | — |  | 183 |  |  | 172 |  | — |  | 172 |  |
Total revenue |  | 1,355 |  | (532) |  | 823 |  |  | 512 |  | — |  | 512 |  |  | 478 |  | — |  | 478 |  |  | 495 |  | — |  | 495 |  |  | 472 |  | — |  | 472 |  |
Noninterest expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Personnel expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Salaries and benefits |  | 201 |  | (1) |  | 200 |  |  | 111 |  | (5) |  | 107 |  |  | 113 |  | (1) |  | 112 |  |  | 112 |  | (4) |  | 107 |  |  | 111 |  | (3) |  | 109 |  |
Incentives and commissions |  | 126 |  | (34) |  | 91 |  |  | 79 |  | — |  | 79 |  |  | 81 |  | — |  | 81 |  |  | 63 |  | — |  | 63 |  |  | 55 |  | 4 |  | 59 |  |
Deferred compensation expense |  | 3 |  | — |  | 3 |  |  | 9 |  | — |  | 9 |  |  | (10) |  | — |  | (10) |  |  | 4 |  | — |  | 4 |  |  | 1 |  | — |  | 1 |  |
Total personnel expenses |  | 329 |  | (35) |  | 294 |  |  | 200 |  | (5) |  | 195 |  |  | 183 |  | (1) |  | 182 |  |  | 179 |  | (4) |  | 174 |  |  | 167 |  | 1 |  | 168 |  |
Occupancy and equipment |  | 77 |  | (4) |  | 73 |  |  | 46 |  | — |  | 46 |  |  | 44 |  | — |  | 44 |  |  | 44 |  | — |  | 44 |  |  | 42 |  | — |  | 42 |  |
Outside services |  | 78 |  | (32) |  | 46 |  |  | 38 |  | (5) |  | 33 |  |  | 38 |  | (2) |  | 37 |  |  | 54 |  | (18) |  | 36 |  |  | 47 |  | (12) |  | 35 |  |
Amortization of intangible assets |  | 15 |  | (1) |  | 14 |  |  | 5 |  | — |  | 5 |  |  | 5 |  | — |  | 5 |  |  | 6 |  | — |  | 6 |  |  | 6 |  | — |  | 6 |  |
Other noninterest expense |  | 89 |  | (44) |  | 45 |  |  | 31 |  | (4) |  | 27 |  |  | 31 |  | (3) |  | 28 |  |  | 45 |  | (15) |  | 31 |  |  | 46 |  | (21) |  | 25 |  |
Total noninterest expense |  | 587 |  | (116) |  | 471 |  |  | 321 |  | (14) |  | 307 |  |  | 302 |  | (6) |  | 296 |  |  | 328 |  | (37) |  | 291 |  |  | 308 |  | (31) |  | 277 |  |
Pre-provision net revenue |  | 768 |  | (416) |  | 352 |  |  | 191 |  | 14 |  | 205 |  |  | 175 |  | 6 |  | 181 |  |  | 166 |  | 37 |  | 203 |  |  | 164 |  | 31 |  | 196 |  |
Provision for credit losses |  | 227 |  | (147) |  | 80 |  |  | 121 |  | — |  | 121 |  |  | 154 |  | — |  | 154 |  |  | 9 |  | — |  | 9 |  |  | 14 |  | — |  | 14 |  |
Income before income taxes |  | 541 |  | (269) |  | 272 |  |  | 69 |  | 14 |  | 84 |  |  | 21 |  | 6 |  | 27 |  |  | 157 |  | 37 |  | 194 |  |  | 150 |  | 31 |  | 181 |  |
Provision for income taxes |  | 2 |  | 61 |  | 63 |  |  | 13 |  | 3 |  | 15 |  |  | 5 |  | 1 |  | 6 |  |  | 36 |  | 7 |  | 43 |  |  | 36 |  | 7 |  | 43 |  |
Net income |  | 539 |  | (331) |  | 208 |  |  | 57 |  | 12 |  | 68 |  |  | 16 |  | 5 |  | 21 |  |  | 121 |  | 30 |  | 151 |  |  | 114 |  | 24 |  | 138 |  |
Net income attributable to noncontrolling interest |  | 3 |  | — |  | 3 |  |  | 3 |  | — |  | 3 |  |  | 3 |  | — |  | 3 |  |  | 3 |  | — |  | 3 |  |  | 3 |  | — |  | 3 |  |
Net income attributable to controlling interest |  | 536 |  | (331) |  | 205 |  |  | 54 |  | 12 |  | 66 |  |  | 14 |  | 5 |  | 18 |  |  | 118 |  | 30 |  | 148 |  |  | 111 |  | 24 |  | 136 |  |
Preferred stock dividends |  | 13 |  | — |  | 13 |  |  | 2 |  | — |  | 2 |  |  | 2 |  | — |  | 2 |  |  | 2 |  | — |  | 2 |  |  | 2 |  | — |  | 2 |  |
Net income available to common shareholders |  | $ | 523 |  | $ | (331) |  | $ | 193 |  |  | $ | 52 |  | $ | 12 |  | $ | 64 |  |  | $ | 12 |  | $ | 5 |  | $ | 17 |  |  | $ | 117 |  | $ | 30 |  | $ | 147 |  |  | $ | 110 |  | $ | 24 |  | $ | 134 |  |
Common Stock Data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
EPS |  | $ | 0.95 |  | $ | (0.60) |  | $ | 0.35 |  |  | $ | 0.17 |  | $ | 0.04 |  | $ | 0.21 |  |  | $ | 0.04 |  | $ | 0.01 |  | $ | 0.05 |  |  | $ | 0.38 |  | $ | 0.10 |  | $ | 0.47 |  |  | $ | 0.35 |  | $ | 0.08 |  | $ | 0.43 |  |
Basic shares |  | 550 |  |  | 550 |  |  | 312 |  |  | 312 |  |  | 312 |  |  | 312 |  |  | 311 |  |  | 311 |  |  | 312 |  |  | 312 |  |
Diluted EPS |  | $ | 0.95 |  | $ | (0.60) |  | $ | 0.35 |  |  | $ | 0.17 |  | $ | 0.04 |  | $ | 0.20 |  |  | $ | 0.04 |  | $ | 0.01 |  | $ | 0.05 |  |  | $ | 0.37 |  | $ | 0.10 |  | $ | 0.47 |  |  | $ | 0.35 |  | $ | 0.08 |  | $ | 0.43 |  |
Diluted shares |  | 551 |  |  | 551 |  |  | 313 |  |  | 313 |  |  | 313 |  |  | 313 |  |  | 313 |  |  | 313 |  |  | 314 |  |  | 314 |  |

Amounts adjusted for notable items as detailed on page 9.
Numbers may not foot due to rounding.
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First Horizon National Corporation

FHN NON-GAAP TO GAAP RECONCILIATION |  |  |  |  |  |  |  |  |  |  |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |
(In millions, except per share data) |  | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q19 |  | 3Q19 |
Adjusted Diluted EPS |  |  |  |  |  |  |  |  |  |  |
Net income available to common ("NIAC") (GAAP) | a | $ | 523 |  |  | $ | 52 |  |  | $ | 12 |  |  | $ | 117 |  |  | $ | 110 |  |
Plus Tax effected notable items (Non-GAAP) (a) |  | $ | (331) |  |  | $ | 12 |  |  | $ | 5 |  |  | $ | 30 |  |  | $ | 24 |  |
Adjusted NIAC (Non-GAAP) | b | $ | 192 |  |  | $ | 64 |  |  | $ | 17 |  |  | $ | 147 |  |  | $ | 134 |  |
Diluted Shares (GAAP) | c | 551 |  |  | 313 |  |  | 313 |  |  | 313 |  |  | 314 |  |
Diluted EPS (GAAP) | a/c | $ | 0.95 |  |  | $ | 0.17 |  |  | $ | 0.04 |  |  | $ | 0.37 |  |  | $ | 0.35 |  |
Adjusted diluted EPS (Non-GAAP) | b/c | $ | 0.35 |  |  | $ | 0.20 |  |  | $ | 0.05 |  |  | $ | 0.47 |  |  | $ | 0.43 |  |
Adjusted Net Income ("NI") and Adjusted Return on Assets ("ROA") |  |  |  |  |  |  |  |  |  |  |
Net Income ("NI") (GAAP) |  | $ | 539 |  |  | $ | 57 |  |  | $ | 16 |  |  | $ | 121 |  |  | $ | 114 |  |
Plus Tax effected notable items (Non-GAAP) (a) |  | $ | (331) |  |  | $ | 12 |  |  | $ | 5 |  |  | $ | 30 |  |  | $ | 24 |  |
Adjusted NI (Non-GAAP) |  | $ | 208 |  |  | $ | 68 |  |  | $ | 21 |  |  | $ | 151 |  |  | $ | 138 |  |
NI (annualized) (GAAP) | d | $ | 2,144 |  |  | $ | 228 |  |  | $ | 66 |  |  | $ | 481 |  |  | $ | 452 |  |
Adjusted NI (annualized) (Non-GAAP) | e | $ | 828 |  |  | $ | 275 |  |  | $ | 84 |  |  | $ | 600 |  |  | $ | 549 |  |
Average assets (GAAP) | f | $ | 81,683 |  |  | $ | 47,934 |  |  | $ | 43,552 |  |  | $ | 42,886 |  |  | $ | 41,941 |  |
ROA (GAAP) | d/f | 2.63 |  | % | 0.48 |  | % | 0.15 |  | % | 1.12 |  | % | 1.08 |  | %
Adjusted ROA (Non-GAAP) | e/f | 1.01 |  | % | 0.57 |  | % | 0.19 |  | % | 1.40 |  | % | 1.31 |  | %
Return on Average Common Equity ("ROCE")/ Return on Average Tangible Common Equity ("ROTCE")/ Adjusted ROTCE |  |  |  |  |  |  |  |  |  |  |
NIAC (annualized) (GAAP) | g | $ | 2,082 |  |  | $ | 210 |  |  | $ | 49 |  |  | $ | 463 |  |  | $ | 434 |  |
Adjusted NIAC (annualized) (Non-GAAP) | h | $ | 765 |  |  | $ | 257 |  |  | $ | 67 |  |  | $ | 582 |  |  | $ | 532 |  |
Average Common Equity (GAAP) | i | $ | 7,309 |  |  | $ | 4,673 |  |  | $ | 4,611 |  |  | $ | 4,649 |  |  | $ | 4,571 |  |
Intangible Assets (GAAP) (b) |  | $ | 1,794 |  |  | $ | 1,555 |  |  | $ | 1,560 |  |  | $ | 1,566 |  |  | $ | 1,572 |  |
Average Tangible Common Equity (Non-GAAP) | j | $ | 5,515 |  |  | $ | 3,117 |  |  | $ | 3,051 |  |  | $ | 3,083 |  |  | $ | 2,999 |  |
ROCE (GAAP) | g/i | 28.49 |  | % | 4.50 |  | % | 1.05 |  | % | 9.97 |  | % | 9.50 |  | %
ROTCE (Non-GAAP) | g/j | 37.75 |  | % | 6.74 |  | % | 1.59 |  | % | 15.03 |  | % | 14.49 |  | %
Adjusted ROTCE (Non-GAAP) | h/j | 13.90 |  | % | 8.26 |  | % | 2.19 |  | % | 18.88 |  | % | 17.73 |  | %

(a) Amounts adjusted for notable items as detailed on page 9.
(b) Includes goodwill and other intangible assets, net of amortization.
Numbers may not foot due to rounding.
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First Horizon National Corporation

FHN NON-GAAP TO GAAP RECONCILIATION |  |  |  |  |  |  |  |  |  |  |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |
(Millions, except per share data) |  | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q19 |  | 3Q19 |
Adjusted Noninterest Income as a % of Total Revenue |  |  |  |  |  |  |  |  |  |  |
Noninterest income (GAAP) | k | $ | 823 |  |  | $ | 206 |  |  | $ | 175 |  |  | $ | 183 |  |  | $ | 172 |  |
Plus notable items (GAAP) (a) |  | $ | (532) |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |
Adjusted noninterest income (Non-GAAP) | l | $ | 291 |  |  | $ | 206 |  |  | $ | 175 |  |  | $ | 183 |  |  | $ | 172 |  |
Revenue (GAAP) | m | $ | 1,355 |  |  | $ | 512 |  |  | $ | 478 |  |  | $ | 495 |  |  | $ | 472 |  |
Plus notable items (GAAP) (a) |  | $ | (532) |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |
Adjusted revenue (Non-GAAP) | n | $ | 823 |  |  | $ | 512 |  |  | $ | 478 |  |  | $ | 495 |  |  | $ | 472 |  |
Noninterest income as a % of total revenue (GAAP) | k/m | 60.72 |  | % | 40.32 |  | % | 36.59 |  | % | 37.05 |  | % | 36.35 |  | %
Adjusted noninterest income as a % of total revenue (Non-GAAP) | l/n | 35.32 |  | % | 40.32 |  | % | 36.59 |  | % | 37.05 |  | % | 36.35 |  | %
Adjusted Efficiency Ratio |  |  |  |  |  |  |  |  |  |  |
Noninterest expense (GAAP) | o | $ | 587 |  |  | $ | 321 |  |  | $ | 302 |  |  | $ | 328 |  |  | $ | 308 |  |
Plus notable items (GAAP) (a) |  | $ | (116) |  |  | $ | (14) |  |  | $ | (6) |  |  | $ | (37) |  |  | $ | (31) |  |
Adjusted noninterest expense (Non-GAAP) | p | $ | 471 |  |  | $ | 307 |  |  | $ | 296 |  |  | $ | 291 |  |  | $ | 277 |  |
Revenue excluding securities gains/losses (GAAP) | q | $ | 1,357 |  |  | $ | 512 |  |  | $ | 478 |  |  | $ | 495 |  |  | $ | 472 |  |
Plus notable items (GAAP) (a) |  | $ | (532) |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |
Adjusted revenue excluding securities gains/losses (Non-GAAP) | r | $ | 825 |  |  | $ | 512 |  |  | $ | 478 |  |  | $ | 495 |  |  | $ | 472 |  |
Efficiency ratio (GAAP) | o/q | 43.31 |  | % | 62.74 |  | % | 63.26 |  | % | 66.35 |  | % | 65.26 |  | %
Adjusted efficiency ratio (Non-GAAP) | p/r | 57.26 |  | % | 59.95 |  | % | 62.05 |  | % | 58.88 |  | % | 58.61 |  | %

(a) Amounts adjusted for notable items as detailed on page 9.
(b) Includes goodwill and other intangible assets, net of amortization.
Numbers may not foot due to rounding.
26

First Horizon National Corporation

FHN GLOSSARY OF TERMS |  |  |  |

Common Equity Tier 1 Ratio: Ratio consisting of common equity adjusted for certain unrealized gains/(losses) on available-for-sale securities, less disallowed portions of goodwill, other intangibles, and deferred tax assets as well as certain other regulatory deductions divided by risk-weighted assets.
Current Expected Credit Loss (“CECL”): New accounting standard that focuses on estimation of expected losses over the life of the loans which is measured by the difference between amortized cost and the net amount expected to be collected.
Fully Taxable Equivalent (“FTE”): Reflects the amount of tax-exempt income adjusted to a level that would yield the same after-tax income had that income been subject to taxation.
Non-Purchased Credit Deteriorated (“Non-PCD”) Financial Assets: Acquired individual financial assets (or acquired groups of financial assets with similar risk characteristics) that, as of the date of acquisition, do not have a more-than-insignificant deterioration in credit quality since origination, as determined by an acquirer’s assessment.
Purchased Credit Deteriorated (“PCD”) Financial Assets: Acquired individual financial assets (or acquired groups of financial assets with similar risk characteristics) that, as of the date of acquisition, have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by an acquirer’s assessment.
Tier 1 Capital Ratio: Ratio consisting of shareholders’ equity adjusted for certain unrealized gains/(losses) on available-for-sale securities, plus qualifying portions of noncontrolling interests, less disallowed portions of goodwill, other intangible assets, and deferred tax assets as well as certain other regulatory deductions divided by risk-weighted assets.

Key Ratios |  |  |  |

Return on Average Assets: Ratio is annualized net income to average total assets.
Return on Average Common Equity: Ratio is annualized net income available to common shareholders to average common equity.
Return on Average Tangible Common Equity: Ratio is annualized net income available to common shareholders to average tangible common equity.
Noninterest Income as a Percentage of Total Revenue: Ratio is noninterest income to total revenue.
Efficiency Ratio: Ratio is noninterest expense to total revenue.
Leverage Ratio: Ratio is tier 1 capital to average assets for leverage.

Asset Quality - Consolidated Key Ratios |  |  |  |

Nonperforming loans and leases ("NPL") %: Ratio is nonaccruing loans and leases in the loan portfolio to total period-end loans and leases.
Net charge-offs %: Ratio is annualized net charge-offs to total average loans and leases.
Allowance / loans and leases: Ratio is allowance for loan and lease losses to total period-end loans and leases.
Allowance / Nonperforming loans and leases: Ratio is allowance for loan and lease losses to nonperforming loans and leases in the loan portfolio.
Allowance / charge-offs: Ratio is allowance for loan and lease losses to annualized net charge-offs.

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