8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of report (Date of earliest event reported): January 18, 2019

First Horizon National Corporation

(Exact Name of Registrant as Specified in Charter)

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

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

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

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

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

o	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2).
		o Emerging growth company
Emerging growth company If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

ITEM 2.02. Results of Operations and Financial Condition.

ITEM 7.01. Regulation FD Disclosure.

Furnished as Exhibit 99.1 is a copy of the First Horizon National Corporation (“FHN”) Fourth Quarter 2018 Financial Supplement and as Exhibit 99.2 is a copy of the Investor Slide Presentation for the quarter and year ended December 31, 2018, both of which were released today.

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

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

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

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

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

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

Forward-Looking Statements

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

ITEM 9.01. Financial Statements and Exhibits.

(d) Exhibits

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

Exhibit #	Description
99.1	First Horizon National Corporation Fourth Quarter 2018 Financial Supplement.
99.2	First Horizon National Corporation Investor Slide Presentation for the quarter and year ended December 31, 2018.

SIGNATURES

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

	First Horizon National Corporation
Date: January 18, 2019	By:	/s/ William C. Losch III
	William C. Losch III
	Executive Vice President and Chief Financial Officer

EX-99.1

1

FOURTH QUARTER 2018

FINANCIAL SUPPLEMENT

If you need further information, please contact:

Aarti Bowman, Investor Relations

901-523-4017

aagoorha@firsthorizon.com

FHN TABLE OF CONTENTS

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

Other Information

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

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

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

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

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

Refer to the tabular reconciliation of non-GAAP to GAAP measures and presentation of the most comparable GAAP items on page 20 of this financial supplement.

2

FIRST HORIZON NATIONAL CORPORATION SEGMENT STRUCTURE

3

FHN PERFORMANCE HIGHLIGHTS
Summary of Fourth Quarter 2018 Notable Items
Segment	Item	Income Statement	Amount Favorable/ (Unfavorable)	Comments
Corporate	Acquisition-related items	Noninterest expense: various	$(11.6) million	Pre-tax acquisition-related expenses primarily associated with the Capital Bank Financial Corp. ("CBF") acquisition
		Noninterest income: other	$(1.8) million	Pre-tax valuation adjustment on Held-For-Sale ("HFS") consumer loans included in the Non-Strategic segment
			$(13.4) million	Total acquisition-related items
Regional Banking	Excess fees on debit card transactions	Noninterest income: deposit transactions and cash management	$(8.7) million	Pre-tax adjustment related to the return of excess fees received from Capital Bank debit card transactions
Fourth Quarter 2018 vs. Third Quarter 2018

Consolidated								- 4Q18 diluted EPS of $.30 compared to $.83 in 3Q18; 3Q18 includes Visa gain  - NII down from lower cash basis interest income, seasonal decline in loans to mortgage companies & decreased loan accretion, partially offset by deposit growth  - NIM of 3.38% in 4Q18 compared to 3.44%; decrease due to increase in interest bearing cash & factors affecting NII  - Provision increase primarily driven by charge-offs associated with 2 credits in C&I, partially offset by reductions in commercial and permanent mortgage  - 4Q18 fee income includes unfavorable adjustment for Capital Bank debit card transactions & lower deferred compensation income  - Expense decrease driven by lower deferred compensation expense & FDIC premium expenses - Average deposits up 3%
(Thousands)	4Q18		3Q18		Change
Net interest income	$	302,512	$	305,700	(1	)	%
Noninterest income	110,274		348,972		(68	)	%
Total revenues	412,786		654,672		(37	)	%
Provision for loan losses	6,000		2,000		NM
Noninterest expense	281,932		294,031		(4	)	%
Income before income taxes	124,854		358,641		(65	)	%
Provision for income taxes	24,049		83,925		(71	)	%
Net income/(loss)	$	100,805	$	274,716	(63	)	%
NM - Not meaningful

Regional Banking								- 4Q18 decrease largely driven by unfavorable adjustment for Capital Bank debit card transactions & lower NII  - Provision expense decreased 2%, reflecting stable credit trends  - Period-end loans up 1%; Period-end deposits up 6%
(Thousands)	4Q18		3Q18		Change
Net interest income	$	299,659	$	302,485	(1	)	%
Noninterest income	69,218		79,855		(13	)	%
Total revenues	368,877		382,340		(4	)	%
Provision for loan losses	7,849		8,045		(2	)	%
Noninterest expense	206,177		207,606		(1	)	%
Income before income taxes	$	154,851	$	166,689	(7	)	%

Fixed Income								- 4Q18 decrease driven by lower ADR, somewhat offset by increase in other product revenue
(Thousands)	4Q18		3Q18		Change
Net interest income	$	9,007	$	9,053	(1	)	%
Noninterest income	39,676		41,123		(4	)	%
Total revenues	48,683		50,176		(3	)	%
Noninterest expense	46,962		47,047		*
Income before income taxes	$	1,721	$	3,129	(45	)	%
* Amount is less than one percent

4

FHN PERFORMANCE HIGHLIGHTS (continued)

Fourth Quarter 2018 vs. Third Quarter 2018 (continued)

Corporate										- 4Q18 decrease primarily driven by 3Q18 Visa gain - Fee income down from lower deferred compensation income & $1.8 million negative valuation adjustment on acquisition-related HFS consumer loans  - Expense down due to a decrease in deferred compensation expense  - Estimated effective duration of securities portfolio 4.1 years in 4Q18 & 4.8 years in 3Q18
(Thousands)	4Q18			3Q18			Change
Net interest income	$	(15,355	)	$	(15,457	)	1		%
Noninterest income	(1,414		)	222,619			NM
Total revenues	(16,769		)	207,162			NM
Noninterest expense	23,136			33,569			(31	)	%
Income before income taxes	$	(39,905	)	$	173,593		NM
NM - Not meaningful

Non-Strategic										- 4Q18 decrease driven by smaller provision credit and lower fee income  - Level of provision continues to reflect declining balances & stable performance in the legacy portfolios  - 3Q18 fee income favorably impacted by $3.8 million gain from reversal of prior valuation adjustment due to sales of TRUPs loans
(Thousands)	4Q18			3Q18			Change
Net interest income	$	9,201		$	9,619		(4	)	%
Noninterest income	2,794			5,375			(48	)	%
Total revenues	11,995			14,994			(20	)	%
Provision for loan losses	(1,849		)	(6,045		)	69		%
Noninterest expense	5,657			5,809			(3	)	%
Income before income taxes	$	8,187		$	15,230		(46	)	%

Asset Quality

• ALLL decreased to $180.4 million in 4Q18 from $186.0 million in 3Q18; the allowance to loans ratio decreased 2 bps to 66 bps in 4Q18

• Regional banking decreased $4.7 million to $156.1 million due primarily to one credit within C&I

• Non-strategic decreased $.8 million to $24.3 million

• Net charge-offs were $11.5 million in 4Q18 compared to $1.5 million in 3Q18

• Regional banking net charge-offs were $12.6 million in 4Q18 primarily driven by two credits within the C&I portfolio; one due to fraud (disclosed and reserved for in 3Q18) and the other due to the loss of the customer's largest client

• Non-strategic net recoveries were $1.1 million in 4Q18

• Nonperforming loans (“NPLs”), excluding loans held-for-sale, were $147.7 million in 4Q18 compared to $146.4 million in 3Q18

• Regional banking NPLs were $81.0 million in 4Q18 compared to $77.9 million in 3Q18

• Non-strategic NPLs were $66.7 million in 4Q18 compared to $68.5 million in 3Q18

• 30+ delinquencies were $75.2 million in 4Q18 compared to $95.1 million in 3Q18 with improvement evident across all portfolios

• Regional banking decreased $18.3 million to $51.3 million

• Non-strategic decreased $1.6 million to $23.9 million

Taxes

• The effective tax rates for 4Q18 and 3Q18 were 19.26 percent and 23.40percent, respectively

• The decrease in effective tax rate in 4Q18 primarily reflects an increase in discrete benefits from 3Q18

• 4Q18 includes $4.4 million of discrete tax benefits

• 3Q18 includes $.6 million of discrete tax expense

• The rates also reflect the favorable net effect from permanent benefits. Permanent benefits primarily consist of tax credit investments, life insurance, and tax-exempt interest, offset by non-deductibility of a portion of FDIC premiums and executive compensation expenses

Capital and Liquidity

• Declared $.12per common share quarterly dividend in 4Q18($38.4 million in the aggregate) which was paid on January 2, 2019

• Declared aggregate preferred quarterly dividend of $1.6 million in 4Q18 which was paid on January 10, 2019

• Repurchased 5.4 million shares costing $80.5 million in 4Q18 with a weighted average price of $15.00; $150.6 million remaining authorization under the stock purchase authorization announced in January 2018, scheduled to expire January 31, 2020

• Capital ratios (regulatory capital ratios calculated under the Basel III risk-based capital rules as phased-in; current quarter is an estimate)

• Common Equity Tier 1 of 9.75 percent in 4Q18 compared to 9.84 percent in 3Q18

• Tier 1 of 10.79 percent in 4Q18 compared to 10.86 percent in 3Q18

• Total Capital of 11.92 percent in 4Q18 compared to 12.02 percent in 3Q18

• Leverage of 9.09 percent in 4Q18 compared to 9.21 percent in 3Q18

5

FHN PERFORMANCE HIGHLIGHTS (continued)

Consolidated Results for Fiscal Year 2018 vs. 2017

Consolidated							- 2018 diluted EPS of $1.65 compared to $.65 in 2017; 2018 includes benefits of CBF acquisition and Visa gain  - NII up from loans added through CBF acquisition (including accretion), favorable funding due to CBF deposits and organic growth, increases in trading securities, and higher market rates  - NIM improved to 3.45% from 3.12% due to CBF loan accretion, higher market rates, and improved funding due to deposit growth  - 2018 fee income up from Visa gain and full year inclusion of Capital Bank, somewhat offset by lower fixed income sales revenue  - 2018 expense increase due to full year inclusion of Capital Bank, higher acquisition-related expenses, and 2017 repurchase and foreclosure provision expense reversal, offset by lower loss accruals related to legal matters - Effective tax rate of 19% in 2018 compared to 23% in 2017 - Loans and deposits increased due to the CBF acquisition and FHN's strategic focus on growing deposits
(Thousands)	2018		2017		Change
Net interest income	$	1,220,317	$	842,314	45	%
Noninterest income	722,788		490,219		47	%
Total revenues	1,943,105		1,332,533		46	%
Provision for loan losses	7,000		—		NM
Noninterest expense	1,221,996		1,023,661		19	%
Income before income taxes	714,109		308,872		NM
Provision for income taxes	157,602		131,892		19	%
Net income/(loss)	$	556,507	$	176,980	NM
Period-end loans	$	27,535,532	$	27,658,929	*
Period-end deposits	32,682,992		30,620,362		7	%
Average loans	27,213,828		20,104,042		35	%
Average deposits	30,903,092		23,072,136		34	%
NM - Not meaningful
* Amount is less than one percent

6

FHN CONSOLIDATED INCOME STATEMENT

Quarterly/Annually, Unaudited

													(a)			4Q18 Changes vs.							Twelve Months Ended						2018 vs.
(Dollars in thousands, except per share data)	4Q18			3Q18			2Q18			1Q18			4Q17				3Q18			4Q17			2018			2017 (a)			2017
Interest income	$	401,186		$	393,669		$	387,811		$	363,355		$	287,633			2		%	39		%	$	1,546,021		$	989,930		56		%
Less: interest expense	98,674			87,969			76,879			62,182			45,545				12		%	NM			325,704			147,616			NM
Net interest income	302,512			305,700			310,932			301,173			242,088				(1	)	%	25		%	1,220,317			842,314			45		%
Provision/(provision credit) for loan losses	6,000			2,000			—			(1,000		)	3,000				NM			NM			7,000			—			NM
Net interest income after provision for loan losses	296,512			303,700			310,932			302,173			239,088				(2	)	%	24		%	1,213,317			842,314			44		%
Noninterest income:
Fixed income (b)	39,866			44,813			37,697			45,506			55,079				(11	)	%	(28	)	%	167,882			216,625			(23	)	%
Deposit transactions and cash management (c)	25,422			35,792			36,083			35,984			30,158				(29	)	%	(16	)	%	133,281			110,592			21		%
Brokerage, management fees and commissions	13,380			14,200			13,740			13,483			12,642				(6	)	%	6		%	54,803			48,514			13		%
Trust services and investment management	6,959			7,438			8,132			7,277			7,116				(6	)	%	(2	)	%	29,806			28,420			5		%
Bankcard income	6,760			6,878			6,635			6,445			8,237				(2	)	%	(18	)	%	26,718			25,467			5		%
Bank-owned life insurance	4,852			4,337			5,773			3,993			3,987				12		%	22		%	18,955			15,124			25		%
Securities gains/(losses), net (d)	(28		)	212,859			31			86			137				NM			NM			212,948			592			NM
Other (e)	13,063			22,655			19,434			23,243			15,834				(42	)	%	(18	)	%	78,395			44,885			75		%
Total noninterest income	110,274			348,972			127,525			136,017			133,190				(68	)	%	(17	)	%	722,788			490,219			47		%
Adjusted gross income after provision for loan losses	406,786			652,672			438,457			438,190			372,278				(38	)	%	9		%	1,936,105			1,332,533			45		%
Noninterest expense:
Employee compensation, incentives, and benefits (f)	156,240			164,839			165,890			171,254			177,312				(5	)	%	(12	)	%	658,223			587,465			12		%
Repurchase and foreclosure provision (g)	(153		)	(562		)	(252		)	(72		)	53				73		%	NM			(1,039		)	(22,527		)	95		%
Legal fees	3,479			2,541			2,784			2,345			1,245				37		%	NM			11,149			12,076			(8	)	%
Professional fees	8,842			9,270			15,415			12,272			26,958				(5	)	%	(67	)	%	45,799			47,929			(4	)	%
Occupancy	22,053			20,002			22,503			20,451			15,887				10		%	39		%	85,009			54,646			56		%
Computer software	14,656			15,693			15,123			15,132			13,157				(7	)	%	11		%	60,604			48,234			26		%
Contract employment and outsourcing	4,248			4,314			5,907			4,053			5,979				(2	)	%	(29	)	%	18,522			14,954			24		%
Operations services	12,945			13,121			14,653			15,561			10,619				(1	)	%	22		%	56,280			43,823			28		%
Equipment rentals, depreciation, and maintenance	8,983			9,423			10,708			10,018			9,530				(5	)	%	(6	)	%	39,132			29,543			32		%
FDIC premium expense (h)	5,200			7,850			9,978			8,614			9,090				(34	)	%	(43	)	%	31,642			26,818			18		%
Advertising and public relations	7,718			8,365			5,070			3,599			5,313				(8	)	%	45		%	24,752			19,214			29		%
Communications and courier	7,256			7,014			7,530			8,232			5,379				3		%	35		%	30,032			17,624			70		%
Amortization of intangible assets	6,461			6,460			6,460			6,474			3,568				*			81		%	25,855			8,728			NM
Other (e)	24,004			25,701			50,999			35,332			62,580				(7	)	%	(62	)	%	136,036			135,134			1		%
Total noninterest expense	281,932			294,031			332,768			313,265			346,670				(4	)	%	(19	)	%	1,221,996			1,023,661			19		%
Income before income taxes	124,854			358,641			105,689			124,925			25,608				(65	)	%	NM			714,109			308,872			NM
Provision for income taxes (i)	24,049			83,925			19,697			29,931			73,989				(71	)	%	(67	)	%	157,602			131,892			19		%
Net income/(loss)	100,805			274,716			85,992			94,994			(48,381		)		(63	)	%	NM			556,507			176,980			NM
Net income attributable to noncontrolling interest	2,910			2,883			2,852			2,820			2,910				1		%	*			11,465			11,465			*
Net income/(loss) attributable to controlling interest	97,895			271,833			83,140			92,174			(51,291		)		(64	)	%	NM			545,042			165,515			NM
Preferred stock dividends	1,550			1,550			1,550			1,550			1,550				*			*			6,200			6,200			*
Net income/(loss) available to common shareholders	$	96,345		$	270,283		$	81,590		$	90,624		$	(52,841	)		(64	)	%	NM			$	538,842		$	159,315		NM
Common Stock Data
EPS (d)	$	0.30		$	0.83		$	0.25		$	0.28		$	(0.20	)		(64	)	%	NM			$	1.66		$	0.66		NM
Basic shares (thousands)	321,505			324,406			325,153			326,489			265,169				(1	)	%	21		%	324,375			241,436			34		%
Diluted EPS	$	0.30		$	0.83		$	0.25		$	0.27		$	(0.20	)		(64	)	%	NM			$	1.65		$	0.65		NM
Diluted shares (thousands)	323,885			327,252			328,426			330,344			265,169				(1	)	%	22		%	327,445			244,453			34		%
Key Ratios & Other
Return on average assets (quarters are annualized) (d) (j)	0.99		%	2.72		%	0.86		%	0.95		%	(0.58		)%								1.38		%	0.59		%
Return on average common equity (“ROCE”) (quarters are annualized) (d) (j)	8.81		%	25.41		%	7.86		%	8.79		%	(6.73		)%								12.75		%	6.18		%
Return on average tangible common equity (“ROTCE”)(quarters are annualized) (d) (j) (k)	13.80		%	40.51		%	12.63		%	14.06		%	(8.78		)%								20.28		%	7.23		%
Fee income to total revenue (j)	26.72		%	30.81		%	29.08		%	31.10		%	35.47		%								29.47		%	36.76		%
Efficiency ratio (j)	68.30		%	66.55		%	75.90		%	71.67		%	92.41		%								70.63		%	76.85		%
Average full time equivalent employees	5,563			5,623			5,873			5,835			4,792										5,723			4,415

NM - Not meaningful

* Amount is less than one percent.

(a) 4Q17 and 2017 include one month of activity related to the CBF acquisition.

(b) 3Q18 includes a $3.8 million gain from the reversal of a previous valuation adjustment due to sales of TRUPS loans.

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

(d) 3Q18 includes a pre-tax gain of $212.9 million from the sale of Visa Class B Shares which impacts certain performance measures in 3Q18 and 2018.

(e) Refer to the Other Income and Other Expense table on page 8 for additional information.

(f) 4Q17 includes $9.9 million of special employee bonuses, somewhat offset by $4.3 million of deferred compensation BOLI gains.

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

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

(i) 3Q18 reflects the tax effect on the gain on the sale of Visa Class B Shares; 4Q17 includes the effects of the Tax Cuts and Jobs Act ("the Tax Act"), somewhat offset by a favorable effective tax rate adjustment associated with the reversal of a capital loss deferred tax valuation allowance.

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

(k) This non-GAAP measure is reconciled to ROCE (GAAP) in the Non-GAAP to GAAP reconciliation on page 20 of this financial supplement.

7

FHN OTHER INCOME AND OTHER EXPENSE

Quarterly/Annually, Unaudited

											(a)		4Q18 Changes vs.						Twelve Months Ended						2018 vs.
(Thousands)	4Q18			3Q18			2Q18		1Q18		4Q17		3Q18			4Q17			2018			2017 (a)			2017
Other Income
ATM and interchange fees	$	3,411		$	3,263		$	3,413	$	3,267	$	3,427	5		%	*			$	13,354		$	12,425		7		%
Dividend income (b)	2,425			2,757			3,124		2,249		—		(12	)	%	NM			10,555			—			NM
Electronic banking fees	1,393			1,309			1,228		1,204		1,171		6		%	19		%	5,134			5,082			1		%
Letter of credit fees	1,447			1,307			1,295		1,249		1,292		11		%	12		%	5,298			4,661			14		%
Mortgage banking	3,077			2,533			2,431		2,546		766		21		%	NM			10,587			4,649			NM
Deferred compensation (c)	(6,124		)	1,458			991		451		1,876		NM			NM			(3,224		)	6,322			NM
Insurance commissions	467			396			476		757		472		18		%	(1	)	%	2,096			2,514			(17	)	%
Other service charges	3,513			3,758			3,728		4,123		3,485		(7	)	%	1		%	15,122			12,532			21		%
Gain/(loss) on extinguishment of debt (d)	(14		)	(1		)	—		—		—		NM			NM			(15		)	(14,329		)	NM
Other (e)	3,468			5,875			2,748		7,397		3,345		(41	)	%	4		%	19,488			11,029			77		%
Total	$	13,063		$	22,655		$	19,434	$	23,243	$	15,834	(42	)	%	(18	)	%	$	78,395		$	44,885		75		%
Other Expense
Litigation and regulatory matters (f)	$	35		$	(1,541	)	$	16	$	2,134	$	32,114	NM			NM			$	644		$	40,517		(98	)	%
Tax credit investments	1,126			1,370			1,079		1,137		822		(18	)	%	37		%	4,712			3,468			36		%
Travel and entertainment	4,340			3,988			5,131		2,983		3,154		9		%	38		%	16,442			11,462			43		%
Employee training and dues	1,908			1,682			1,849		1,779		1,357		13		%	41		%	7,218			5,551			30		%
Customer relations	1,834			1,328			1,358		1,063		1,510		38		%	21		%	5,583			5,750			(3	)	%
Miscellaneous loan costs	1,012			543			1,035		1,142		673		86		%	50		%	3,732			2,751			36		%
Supplies	1,459			1,635			1,987		1,836		1,222		(11	)	%	19		%	6,917			4,106			68		%
OREO	456			1,256			810		108		53		(64	)	%	NM		%	2,630			1,006			NM
Other insurance and taxes	1,506			2,761			2,752		2,665		2,457		(45	)	%	(39	)	%	9,684			9,686			*
Non-service components of net periodic pension and post retirement cost (g)	1,632			1,585			1,530		504		362		3		%	NM			5,251			2,144			NM
Other (h)	8,696			11,094			33,452		19,981		18,856		(22	)	%	(54	)	%	73,223			48,693			50		%
Total	$	24,004		$	25,701		$	50,999	$	35,332	$	62,580	(7	)	%	(62	)	%	$	136,036		$	135,134		1		%

Certain previously reported amounts have been reclassified.

NM - Not meaningful

* Amount is less than one percent.

(a) 4Q17 and 2017 include one month of activity related to the CBF acquisition.

(b) Effective 1/1/18 FHN adopted ASU 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities" and began recording dividend income from FRB and FHLB holdings in other income. Prior to 1Q18 these amounts were included in Interest income on the Income Statement.

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

(d) 2017 includes a $14.3 million loss from the repurchase of equity securities previously included in a financing transaction.

(e) 4Q18 includes a $1.8 million negative valuation adjustment on HFS consumer loans included in the Non-Strategic segment; 3Q18 and 1Q18 include $.8 million and $3.3 million, respectively, of gains on the sales of buildings.

(f) 3Q18 includes a $1.6 million expense reversal related to a recovery of prior litigation losses within the Regional Banking segment.

(g) 1Q18 includes a $1.0 million favorable adjustment related to benefits received.

(h) 2Q18 includes $4.1 million of valuation adjustments associated with derivatives related to prior sales of Visa Class B shares; 4Q17 includes a $5.6 million charitable contribution to the First Tennessee Foundation.

8

FHN CONSOLIDATED PERIOD-END BALANCE SHEET

Quarterly, Unaudited 

																4Q18 Changes vs.
(Thousands)	4Q18			3Q18			2Q18			1Q18			4Q17			3Q18			4Q17
Assets:
Investment securities (a)	$	4,636,470		$	4,618,383		$	4,734,411		$	4,836,155		$	5,180,255		*			(10	)	%
Loans held-for-sale (b)	679,149			725,651			692,659			770,412			699,377			(6	)	%	(3	)	%
Loans, net of unearned income	27,535,532			27,350,214			27,701,740			27,249,793			27,658,929			1		%	*
Federal funds sold	237,591			113,722			91,303			62,541			87,364			NM			NM
Securities purchased under agreements to resell	386,443			687,437			782,765			910,670			725,609			(44	)	%	(47	)	%
Interest-bearing cash (c)	1,277,611			531,681			750,634			309,351			1,185,600			NM			8		%
Trading securities	1,448,168			1,930,991			1,649,470			1,759,430			1,416,345			(25	)	%	2		%
Total earning assets	36,200,964			35,958,079			36,402,982			35,898,352			36,953,479			1		%	(2	)	%
Cash and due from banks	781,291			642,051			602,952			459,820			639,073			22		%	22		%
Fixed income receivables (d)	38,861			177,802			68,148			94,036			68,693			(78	)	%	(43	)	%
Goodwill	1,426,324			1,409,822			1,409,276			1,398,501			1,386,853			1		%	3		%
Other intangible assets, net	155,034			161,495			167,955			174,415			184,389			(4	)	%	(16	)	%
Premises and equipment, net	494,041			506,453			525,175			531,981			532,251			(2	)	%	(7	)	%
Other real estate owned ("OREO")	25,290			28,628			29,712			35,715			43,382			(12	)	%	(42	)	%
Allowance for loan losses	(180,424		)	(185,959		)	(185,462		)	(187,194		)	(189,555		)	(3	)	%	(5	)	%
Derivative assets	81,475			54,476			122,056			114,348			81,634			50		%	*
Other assets (a)	1,810,261			1,883,077			1,934,001			1,943,221			1,723,189			(4	)	%	5		%
Total assets	$	40,833,117		$	40,635,924		$	41,076,795		$	40,463,195		$	41,423,388		*			(1	)	%
Liabilities and Equity:
Deposits:
Consumer interest	$	13,327,104		$	12,800,892		$	12,780,195		$	12,674,251		$	12,877,955		4		%	3		%
Commercial interest	6,172,159			5,735,486			5,547,510			5,816,992			5,469,868			8		%	13		%
Market-indexed (e)	5,042,412			4,445,826			4,412,272			4,346,862			4,249,536			13		%	19		%
Total interest-bearing deposits	24,541,675			22,982,204			22,739,977			22,838,105			22,597,359			7		%	9		%
Noninterest-bearing deposits	8,141,317			8,025,881			8,237,890			7,980,846			8,023,003			1		%	1		%
Total deposits	32,682,992			31,008,085			30,977,867			30,818,951			30,620,362			5		%	7		%
Federal funds purchased	256,567			437,474			351,655			392,714			399,820			(41	)	%	(36	)	%
Securities sold under agreements to repurchase	762,592			678,510			713,152			672,154			656,602			12		%	16		%
Trading liabilities	335,380			739,694			743,721			827,362			638,515			(55	)	%	(47	)	%
Other short-term borrowings (f)	114,764			1,069,912			1,836,852			1,332,141			2,626,213			(89	)	%	(96	)	%
Term borrowings (g)	1,170,963			1,200,134			1,227,281			1,214,967			1,218,097			(2	)	%	(4	)	%
Fixed income payables (d)	9,572			36,939			14,739			6,167			48,996			(74	)	%	(80	)	%
Derivative liabilities	133,713			170,324			135,349			121,394			85,061			(21	)	%	57		%
Other liabilities	589,688			552,921			526,430			504,817			549,234			7		%	7		%
Total liabilities	36,056,231			35,893,993			36,527,046			35,890,667			36,842,900			*			(2	)	%
Equity:
Common stock	199,108			202,464			203,127			204,496			204,211			(2	)	%	(2	)	%
Capital surplus	3,029,425			3,101,102			3,113,612			3,155,407			3,147,613			(2	)	%	(4	)	%
Undivided profits	1,542,408			1,484,959			1,254,069			1,211,655			1,160,434			4		%	33		%
Accumulated other comprehensive loss, net	(385,110		)	(437,649		)	(412,114		)	(390,085		)	(322,825		)	(12	)	%	19		%
Preferred stock	95,624			95,624			95,624			95,624			95,624			*			*
Noncontrolling interest (h)	295,431			295,431			295,431			295,431			295,431			*			*
Total equity	4,776,886			4,741,931			4,549,749			4,572,528			4,580,488			1		%	4		%
Total liabilities and equity	$	40,833,117		$	40,635,924		$	41,076,795		$	40,463,195		$	41,423,388		*			(1	)	%

NM - Not meaningful

*Amount is less than one percent.

(a) Effective 1/1/18 FHN adopted ASU 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities" which resulted in the reclassification of all equity investments from investment securities to other assets.

(b) 4Q18 includes $578.3 million of SBA and USDA loans, $75.7 million of mortgage loans, and $25.1 million of other consumer loans; 2Q18 decrease driven by the sales of approximately $120 million UPB of loans.     

(c) Includes excess balances held at Fed.

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

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

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

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

(h) Consists of preferred stock of subsidiaries.

9

FHN CONSOLIDATED AVERAGE BALANCE SHEET

Quarterly/Annually, Unaudited 

													(a)			4Q18 Changes vs.							Twelve Months Ended						2018 vs.
(Thousands)	4Q18			3Q18			2Q18			1Q18			4Q17				3Q18			4Q17			2018			2017 (a)				2017
Assets:
Earning assets:
Loans, net of unearned income:
Commercial, financial, and industrial (C&I)	$	15,952,608		$	16,038,920		$	15,958,162		$	15,535,621		$	13,756,024			(1	)	%	16		%	$	15,872,929		$	12,367,420			28		%
Commercial real estate	4,170,186			4,226,580			4,198,275			4,230,217			2,892,949				(1	)	%	44		%	4,206,206			2,365,763				78		%
Consumer real estate	6,164,117			6,199,910			6,217,618			6,302,365			5,029,588				(1	)	%	23		%	6,220,566			4,588,833				36		%
Permanent mortgage	338,866			348,922			369,144			389,732			400,991				(3	)	%	(15	)	%	361,492			407,552				(11	)	%
Credit card and other	528,866			532,890			555,588			594,130			439,057				(1	)	%	20		%	552,635			374,474				48		%
Total loans, net of unearned income (b)	27,154,643			27,347,222			27,298,787			27,052,065			22,518,609				(1	)	%	21		%	27,213,828			20,104,042				35		%
Loans held-for-sale (c)	714,388			727,508			727,212			726,978			504,577				(2	)	%	42		%	723,996			370,578				95		%
Investment securities:
U.S. treasuries	98			98			98			98			99				*			(1	)	%	98			102				(4	)	%
U.S. government agencies	4,489,625			4,594,639			4,705,893			4,792,709			4,042,844				(2	)	%	11		%	4,644,746			3,824,751				21		%
States and municipalities	27,573			14,332			1,621			51			182				92		%	NM			10,979			1,118				NM
Corporate bonds	65,033			65,505			65,719			65,634			29,904				(1	)	%	NM			65,471			15,017				NM
Other (d)	11,421			7,307			4,114			5,153			203,395				56		%	(94	)	%	7,017			191,701				(96	)	%
Total investment securities	4,593,750			4,681,881			4,777,445			4,863,645			4,276,424				(2	)	%	7		%	4,728,311			4,032,689				17		%
Trading securities	1,634,726			1,501,857			1,568,675			1,711,776			1,439,152				9		%	14		%	1,603,767			1,195,442				34		%
Other earning assets:
Federal funds sold	43,752			43,396			35,165			27,797			24,980				1		%	75		%	37,587			27,225				38		%
Securities purchased under agreements to resell	609,891			764,743			728,785			881,429			818,887				(20	)	%	(26	)	%	745,519			752,063				(1	)	%
Interest-bearing cash (e)	1,073,540			486,280			447,461			482,060			459,868				NM			NM			623,583			978,958				(36	)	%
Total other earning assets	1,727,183			1,294,419			1,211,411			1,391,286			1,303,735				33		%	32		%	1,406,689			1,758,246				(20	)	%
Total earning assets	35,824,690			35,552,887			35,583,530			35,745,750			30,042,497				1		%	19		%	35,676,591			27,460,997				30		%
Allowance for loan losses	(186,978		)	(186,204		)	(187,253		)	(190,420		)	(194,859		)		*			(4	)	%	(187,700		)	(198,634		)		(6	)	%
Cash and due from banks	615,199			597,578			564,554			563,555			437,604				3		%	41		%	585,397			377,932				55		%
Fixed income receivables	56,519			54,176			51,346			61,757			79,162				4		%	(29	)	%	55,930			60,066				(7	)	%
Premises and equipment, net	499,867			518,017			532,259			537,359			367,196				(4	)	%	36		%	521,762			310,530				68		%
Derivative assets	38,449			31,322			99,212			79,292			68,692				23		%	(44	)	%	61,873			75,588				(18	)	%
Other assets (d)	3,454,782			3,509,257			3,530,064			3,553,431			2,305,962				(2	)	%	50		%	3,511,606			1,838,334				91		%
Total assets	$	40,302,528		$	40,077,033		$	40,173,712		$	40,350,724		$	33,106,254			1		%	22		%	$	40,225,459		$	29,924,813			34		%
Liabilities and equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Consumer interest	$	12,965,734		$	12,663,181		$	12,581,023		$	12,586,843		$	10,279,937			2		%	26		%	$	12,700,135		$	9,467,518			34		%
Commercial interest	5,900,136			5,580,371			5,618,245			5,540,090			3,684,643				6		%	60		%	5,660,480			3,187,034				78		%
Market-indexed (f)	4,947,192			4,486,335			4,488,503			4,238,128			3,958,224				10		%	25		%	4,541,835			3,986,095				14		%
Total interest-bearing deposits	23,813,062			22,729,887			22,687,771			22,365,061			17,922,804				5		%	33		%	22,902,450			16,640,647				38		%
Federal funds purchased	334,036			454,670			368,321			464,300			425,900				(27	)	%	(22	)	%	405,110			447,137				(9	)	%
Securities sold under agreements to repurchase	710,898			720,716			667,689			756,487			595,275				(1	)	%	19		%	713,841			578,666				23		%
Trading liabilities	543,696			702,026			666,092			822,815			741,063				(23	)	%	(27	)	%	682,943			685,891				*
Other short-term borrowings (g)	244,413			861,865			1,399,580			1,698,490			1,246,087				(72	)	%	(80	)	%	1,046,585			554,502				89		%
Term borrowings	1,172,405			1,235,166			1,220,494			1,219,916			1,121,268				(5	)	%	5		%	1,211,928			1,077,257				13		%
Total interest-bearing liabilities	26,818,510			26,704,330			27,009,947			27,327,069			22,052,397				*			22		%	26,962,857			19,984,100				35		%
Noninterest-bearing deposits	8,034,692			8,117,349			8,003,901			7,843,239			6,972,912				(1	)	%	15		%	8,000,642			6,431,489				24		%
Fixed income payables	19,858			17,582			15,453			27,913			53,401				13		%	(63	)	%	20,172			35,261				(43	)	%
Derivative liabilities	147,075			114,211			103,130			72,157			65,843				29		%	NM			109,362			79,154				38		%
Other liabilities	551,695			512,259			488,735			506,430			455,536				8		%	21		%	514,897			424,501				21		%
Total liabilities	35,571,830			35,465,731			35,621,166			35,776,808			29,600,089				*			20		%	35,607,930			26,954,505				32		%
Equity:
Common stock	201,006			202,852			203,381			204,332			165,991				(1	)	%	21		%	202,884			151,214				34		%
Capital surplus	3,068,536			3,108,721			3,121,578			3,151,931			1,993,908				(1	)	%	54		%	3,112,452			1,544,651				NM
Undivided profits	1,510,503			1,323,826			1,240,809			1,192,462			1,194,840				14		%	26		%	1,317,789			1,121,519				18		%
Accumulated other comprehensive loss, net (h)	(440,402		)	(415,152		)	(404,277		)	(365,864		)	(239,629		)		6		%	84		%	(406,651		)	(238,131		)		71		%
Preferred stock	95,624			95,624			95,624			95,624			95,624				*			*			95,624			95,624				*
Noncontrolling interest (i)	295,431			295,431			295,431			295,431			295,431				*			*			295,431			295,431				*
Total equity	4,730,698			4,611,302			4,552,546			4,573,916			3,506,165				3		%	35		%	4,617,529			2,970,308				55		%
Total liabilities and equity	$	40,302,528		$	40,077,033		$	40,173,712		$	40,350,724		$	33,106,254			1		%	22		%	$	40,225,459		$	29,924,813			34		%

NM - Not meaningful

*Amount is less than one percent.

(a) 4Q17 and 2017 include the average impact of one month of balances related to the CBF acquisition.

(b) Includes loans on nonaccrual status.

(c) 4Q18 includes $606.3 million of SBA and USDA loans, $79.1 million of mortgage loans, and $29.0 million of other consumer loans; 1Q18 increase driven by the

CBF acquisition.

(d) Effective 1/1/18 FHN adopted ASU 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities" which resulted in the reclassification of all equity investments from investment securities to other assets.

(e) Includes excess balances held at Fed.

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

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

(h) Effective 12/31/17 FHN early adopted ASU 2018-02, "Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income."

(i) Consists of preferred stock of subsidiaries.

10

FHN CONSOLIDATED NET INTEREST INCOME (a)

Quarterly, Unaudited 

													(b)			4Q18 Changes vs.
(Thousands)	4Q18			3Q18			2Q18			1Q18			4Q17			3Q18			4Q17
Interest Income:
Loans, net of unearned income (c)	$	333,935		$	333,088		$	326,069		$	301,411		$	242,950		*			37		%
Loans held-for-sale (d)	11,759			9,977			11,228			12,144			6,601			18		%	78		%
Investment securities:
U.S. government agencies	30,744			31,106			31,692			31,870			25,911			(1	)	%	19		%
States and municipalities	300			129			13			—			3			NM			NM
Corporate bonds	716			714			720			745			355			*			NM
Other (e)	955			592			342			363			2,015			61		%	(53	)	%
Total investment securities	32,715			32,541			32,767			32,978			28,284			1		%	16		%
Trading securities	15,533			14,305			14,967			14,537			11,285			9		%	38		%
Other earning assets:
Federal funds sold	304			273			207			145			113			11		%	NM
Securities purchased under agreements to resell	3,197			3,510			2,944			2,503			1,652			(9	)	%	94		%
Interest-bearing cash	5,884			2,257			1,950			1,684			1,484			NM			NM
Total other earning assets	9,385			6,040			5,101			4,332			3,249			55		%	NM
Interest income	$	403,327		$	395,951		$	390,132		$	365,402		$	292,369		2		%	38		%
Interest Expense:
Interest-bearing deposits:
Consumer interest	$	21,607		$	17,968		$	14,153		$	7,534		$	4,977		20		%	NM
Commercial interest	22,706			18,302			14,737			12,127			7,220			24		%	NM
Market-indexed (f)	29,366			22,820			19,859			15,372			12,272			29		%	NM
Total interest-bearing deposits	73,679			59,090			48,749			35,033			24,469			25		%	NM
Federal funds purchased	1,933			2,355			1,640			1,738			1,387			(18	)	%	39		%
Securities sold under agreements to repurchase	3,329			2,780			1,997			1,901			1,175			20		%	NM
Trading liabilities	4,320			5,125			4,790			5,124			4,186			(16	)	%	3		%
Other short-term borrowings	1,571			4,627			6,473			6,403			4,145			(66	)	%	(62	)	%
Term borrowings	13,842			13,992			13,230			11,983			10,183			(1	)	%	36		%
Interest expense	98,674			87,969			76,879			62,182			45,545			12		%	NM
Net interest income - tax equivalent basis	304,653			307,982			313,253			303,220			246,824			(1	)	%	23		%
Fully taxable equivalent adjustment	(2,141		)	(2,282		)	(2,321		)	(2,047		)	(4,736		)	6		%	55		%
Net interest income	$	302,512		$	305,700		$	310,932		$	301,173		$	242,088		(1	)	%	25		%

NM - Not meaningful

*Amount is less than one percent.

(a) Net interest income adjusted to a fully taxable equivalent (“FTE”) basis assuming a statutory federal income tax of 21 percent and 35 percent in 2018 and 2017, respectively, and, where applicable, state income taxes.

(b) 4Q17 includes one month of activity related to the CBF acquisition.

(c) Includes interest on loans in nonaccrual status.

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

(e) 1Q18 decrease driven by the adoption of ASU 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities" which resulted in the reclassification of interest and dividend income on equity securities to noninterest income on a prospective basis. The remaining balance is primarily comprised of interest earned on SBA IO strips.

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

11

FHN CONSOLIDATED AVERAGE BALANCE SHEET: YIELDS AND RATES

Quarterly, Unaudited 

	4Q18		3Q18		2Q18		1Q18		4Q17
Assets:
Earning assets: (a)
Loans, net of unearned income: (b)
Commercial loans	5.00	%	4.95	%	4.88	%	4.53	%	4.27	%
Consumer loans	4.54		4.51		4.52		4.48		4.33
Total loans, net of unearned income (c)	4.88		4.84		4.79		4.51		4.28
Loans held-for-sale	6.58		5.49		6.18		6.68		5.23
Investment securities:
U.S. government agencies	2.74		2.71		2.69		2.66		2.56
States and municipalities	4.36		3.60		3.12		3.37		7.04
Corporate bonds	4.40		4.36		4.38		4.54		4.74
Other (d)	33.16		31.97		32.48		27.65		3.96
Total investment securities	2.85		2.78		2.74		2.71		2.65
Trading securities	3.80		3.81		3.82		3.40		3.14
Other earning assets:
Federal funds sold	2.76		2.50		2.36		2.11		1.79
Securities purchased under agreements to resell	2.08		1.82		1.62		1.15		0.80
Interest-bearing cash	2.17		1.84		1.75		1.42		1.28
Total other earning assets	2.16		1.85		1.69		1.26		0.99
Interest income/total earning assets	4.47	%	4.43	%	4.39	%	4.13	%	3.87	%
Liabilities:
Interest-bearing liabilities:
Interest-bearing deposits:
Consumer interest	0.66	%	0.56	%	0.45	%	0.24	%	0.19	%
Commercial interest	1.53		1.30		1.05		0.89		0.78
Market-indexed (e)	2.35		2.02		1.77		1.47		1.23
Total interest-bearing deposits	1.23		1.03		0.86		0.64		0.54
Federal funds purchased	2.30		2.05		1.79		1.52		1.29
Securities sold under agreements to repurchase	1.86		1.53		1.20		1.02		0.78
Trading liabilities	3.15		2.90		2.88		2.53		2.24
Other short-term borrowings	2.55		2.13		1.86		1.53		1.32
Term borrowings (f)	4.72		4.53		4.34		3.93		3.63
Interest expense/total interest-bearing liabilities	1.46		1.31		1.14		0.92		0.82
Net interest spread	3.01	%	3.12	%	3.25	%	3.21	%	3.05	%
Effect of interest-free sources used to fund earning assets	0.37		0.32		0.28		0.22		0.22
Net interest margin	3.38	%	3.44	%	3.53	%	3.43	%	3.27	%
Total loan yield	4.88	%	4.84	%	4.79	%	4.51	%	4.28	%
Total deposit cost	0.92	%	0.76	%	0.64	%	0.47	%	0.39	%

Yields are adjusted to a FTE basis assuming a statutory federal income tax rate of 21 percent and 35 percent in 2018 and 2017, respectively, and, where applicable, state income taxes.

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

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

(c) Includes loans on nonaccrual status.

(d) 1Q18 increase driven by the adoption of ASU 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities" which resulted in the reclassification of interest and dividend income on equity securities to noninterest income on a prospective basis. The remaining balance is primarily comprised of higher-yielding SBA IO strips.

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

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

12

FHN CAPITAL HIGHLIGHTS

Quarterly, Unaudited 

																4Q18 Changes vs.
(Dollars and shares in thousands)	4Q18			3Q18			2Q18			1Q18			4Q17			3Q18			4Q17
Common equity tier 1 capital (a) (b) (c)	$	3,226,029		$	3,252,825		$	3,002,958		$	2,991,223		$	2,962,155		(1	)		9		%
Tier 1 capital (a) (b) (c)	3,567,988			3,589,565			3,338,179			3,324,349			3,281,478			(1	)		9		%
Total capital (a) (c)	3,942,814			3,973,141			3,760,651			3,746,007			3,703,754			(1	)		6		%
Risk-weighted assets (“RWA”) (a) (b)	33,075,800			33,041,617			33,437,145			33,293,821			33,373,877			*			(1	)	%
Average assets for leverage (a) (b) (d)	39,232,576			38,962,431			39,003,215			39,127,510			31,824,751			1			23		%
Common equity tier 1 ratio (a) (b) (c)	9.75		%	9.84		%	8.98		%	8.98		%	8.88		%
Tier 1 ratio (a) (b) (c)	10.79		%	10.86		%	9.98		%	9.98		%	9.83		%
Total capital ratio (a) (c)	11.92		%	12.02		%	11.25		%	11.25		%	11.10		%
Leverage ratio (a) (b) (e)	9.09		%	9.21		%	8.56		%	8.50		%	10.31		%
Total equity to total assets (c)	11.70		%	11.67		%	11.08		%	11.30		%	11.06		%
Tangible common equity/tangible assets (“TCE/TA”) (c) (f)	7.14		%	7.12		%	6.54		%	6.71		%	6.57		%
Period-end shares outstanding (g)	318,573			323,943			325,003			327,194			326,736			(2	)	%	(2	)	%
Cash dividends declared per common share	$	0.12		$	0.12		$	0.12		$	0.12		$	0.09		*			33		%
Book value per common share (c)	$	13.77		$	13.43		$	12.80		$	12.78		$	12.82
Tangible book value per common share (c) (f)	$	8.80		$	8.58		$	7.94		$	7.97		$	8.01
Market capitalization (millions) (h)	$	4,192.4		$	5,591.3		$	5,798.1		$	6,161.1		$	6,531.5

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

* Amount is less than one percent.

(a) Current quarter is an estimate.

(b) See Glossary of Terms for definition.

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

(d) 1Q18 increase driven by the average impact of three months of balances related to the CBF acquisition compared to one month in 4Q17.

(e) 4Q17 ratio impacted by the timing of the CBF acquisition (one month of average impact of CBF balances).

(f) TCE/TA and Tangible book value per common share are non-GAAP measures and are reconciled to Total equity to total assets (GAAP) and to Book value per common share (GAAP), respectively, in the Non-GAAP to GAAP reconciliation on page 20 of this financial supplement.

(g) 4Q18 decrease largely attributable to 5.4 million of shares repurchased under share repurchase programs.

(h) 4Q18 decrease driven by a decrease in FHN's stock price on the last day of the quarter and 5.4 million of shares repurchased under share repurchase programs.

13

FHN BUSINESS SEGMENT HIGHLIGHTS

Quarterly/Annually, Unaudited

													(a)			4Q18 Changes vs.							Twelve Months Ended						2018 vs.
(Thousands)	4Q18			3Q18			2Q18			1Q18			4Q17				3Q18			4Q17			2018			2017 (a)			2017
Regional Banking
Net interest income	$	299,659		$	302,485		$	306,992		$	293,181		$	242,364			(1	)	%	24		%	$	1,202,317		$	846,620			42		%
Noninterest income (b)	69,218			79,855			80,277			79,958			70,541				(13	)	%	(2	)	%	309,308			258,627				20		%
Total revenues	368,877			382,340			387,269			373,139			312,905				(4	)	%	18		%	1,511,625			1,105,247				37		%
Provision for loan losses	7,849			8,045			4,925			4,458			9,431				(2	)	%	(17	)	%	25,277			21,341				18		%
Noninterest expense	206,177			207,606			209,340			201,617			176,988				(1	)	%	16		%	824,740			626,304				32		%
Income before income taxes	154,851			166,689			173,004			167,064			126,486				(7	)	%	22		%	661,608			457,602				45		%
Provision for income taxes	36,337			39,106			40,660			39,368			44,006				(7	)	%	(17	)	%	155,471			163,547				(5	)	%
Net income	$	118,514		$	127,583		$	132,344		$	127,696		$	82,480			(7	)	%	44		%	$	506,137		$	294,055			72		%
Fixed Income
Net interest income	$	9,007		$	9,053		$	9,182		$	8,473		$	5,915			(1	)	%	52		%	$	35,715		$	18,065			98		%
Noninterest income	39,676			41,123			38,363			45,605			55,250				(4	)	%	(28	)	%	164,767			217,082				(24	)	%
Total revenues	48,683			50,176			47,545			54,078			61,165				(3	)	%	(20	)	%	200,482			235,147				(15	)	%
Noninterest expense	46,962			47,047			47,548			49,947			54,637				*			(14	)	%	191,504			208,921				(8	)	%
Income/(loss) before income taxes	1,721			3,129			(3		)	4,131			6,528				(45	)	%	(74	)	%	8,978			26,226				(66	)	%
Provision/(benefit) for income taxes	296			598			(226		)	892			2,171				(51	)	%	(86	)	%	1,560			8,717				(82	)	%
Net income	$	1,425		$	2,531		$	223		$	3,239		$	4,357			(44	)	%	(67	)	%	$	7,418		$	17,509			(58	)	%
Corporate
Net interest income/(expense)	$	(15,355	)	$	(15,457	)	$	(17,153	)	$	(16,175	)	$	(16,770	)		1		%	8		%	$	(64,140	)	$	(59,383	)		(8	)	%
Noninterest income (c)	(1,414		)	222,619			8,736			9,311			6,655				NM			NM			239,252			8,878				NM
Total revenues	(16,769		)	207,162			(8,417		)	(6,864		)	(10,115		)		NM			(66	)	%	175,112			(50,505		)		NM
Noninterest expense (d)	23,136			33,569			67,823			53,301			75,427				(31	)	%	(69	)	%	177,829			144,258				23		%
Income/(loss) before income taxes	(39,905		)	173,593			(76,240		)	(60,165		)	(85,542		)		NM			53		%	(2,717		)	(194,763		)		99		%
Provision/(benefit) for income taxes (e)	(14,607		)	40,457			(22,943		)	(13,763		)	36,181				NM			NM			(10,856		)	(47,989		)		77		%
Net income/(loss)	$	(25,298	)	$	133,136		$	(53,297	)	$	(46,402	)	$	(121,723	)		NM			79		%	$	8,139		$	(146,774	)		NM
Non-Strategic
Net interest income	$	9,201		$	9,619		$	11,911		$	15,694		$	10,579			(4	)	%	(13	)	%	$	46,425		$	37,012			25		%
Noninterest income (f)	2,794			5,375			149			1,143			744				(48	)	%	NM			9,461			5,632				68		%
Total revenues	11,995			14,994			12,060			16,837			11,323				(20	)	%	6		%	55,886			42,644				31		%
Provision/(provision credit) for loan losses	(1,849		)	(6,045		)	(4,925		)	(5,458		)	(6,431		)		69		%	71		%	(18,277		)	(21,341		)		14		%
Noninterest expense (g)	5,657			5,809			8,057			8,400			39,618				(3	)	%	(86	)	%	27,923			44,178				(37	)	%
Income/(loss) before income taxes	8,187			15,230			8,928			13,895			(21,864		)		(46	)	%	NM			46,240			19,807				NM
Provision/(benefit) for income taxes	2,023			3,764			2,206			3,434			(8,369		)		(46	)	%	NM			11,427			7,617				50		%
Net income/(loss)	$	6,164		$	11,466		$	6,722		$	10,461		$	(13,495	)		(46	)	%	NM			$	34,813		$	12,190			NM
Total Consolidated
Net interest income	$	302,512		$	305,700		$	310,932		$	301,173		$	242,088			(1	)	%	25		%	$	1,220,317		$	842,314			45		%
Noninterest income	110,274			348,972			127,525			136,017			133,190				(68	)	%	(17	)	%	722,788			490,219				47		%
Total revenues	412,786			654,672			438,457			437,190			375,278				(37	)	%	10		%	1,943,105			1,332,533				46		%
Provision/(provision credit) for loan losses	6,000			2,000			—			(1,000		)	3,000				NM			NM			7,000			—				NM
Noninterest expense	281,932			294,031			332,768			313,265			346,670				(4	)	%	(19	)	%	1,221,996			1,023,661				19		%
Income before income taxes	124,854			358,641			105,689			124,925			25,608				(65	)	%	NM			714,109			308,872				NM
Provision for income taxes	24,049			83,925			19,697			29,931			73,989				(71	)	%	(67	)	%	157,602			131,892				19		%
Net income/(loss)	$	100,805		$	274,716		$	85,992		$	94,994		$	(48,381	)		(63	)	%	NM			$	556,507		$	176,980			NM

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

* - Amount is less than one percent.

NM - Not meaningful

(a) 4Q17 and 2017 include one month of activity related to the CBF acquisition.

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

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

(d) Quarterly and annual balances include acquisition- and integration-related expenses primarily associated with the CBF acquisition.

(e) 3Q18 reflects the tax effect on the gain on the sale of Visa Class B Shares; 4Q17 includes the effects of the Tax Cuts and Jobs Act ("the Tax Act"), somewhat offset by a favorable effective tax rate adjustment associated with the reversal of a capital loss deferred tax valuation allowance.

(f) 3Q18 includes a $3.8 million gain from the reversal of a previous valuation adjustment due to sales of TRUPS loans.

(g) 4Q17 includes $32.0 million of loss accruals related to legal matters.

14

FHN REGIONAL BANKING

Quarterly/Annually, Unaudited

										(a)		4Q18 Changes vs.				Twelve Months Ended						2018 vs.
	4Q18			3Q18		2Q18		1Q18		4Q17		3Q18		4Q17		2018			2017 (a)			2017
Income Statement (thousands)
Net interest income	$	299,659		$	302,485	$	306,992	$	293,181	$	242,364	(1)	%	24	%	$	1,202,317		$	846,620			42		%
Provision for loan losses	7,849			8,045		4,925		4,458		9,431		(2)	%	(17)	%	25,277			21,341				18		%
Noninterest income:
NSF / Overdraft fees (b)	14,129			13,584		12,663		12,255		11,409		4	%	24	%	52,631			36,313				45		%
Cash management fees	9,091			9,255		9,210		9,285		9,396		(2)	%	(3)	%	36,842			37,155				(1	)	%
Debit card income (c)	(3,142		)	7,811		8,395		8,409		3,685		NM		NM		21,473			14,380				49		%
Other	3,556			3,358		4,262		4,788		4,385		6	%	(19)	%	15,963			17,315				(8	)	%
Total deposit transactions and cash management	23,634			34,008		34,530		34,737		28,875		(31)	%	(18)	%	126,909			105,163				21		%
Brokerage, management fees and commissions	13,377			14,199		13,740		13,483		12,642		(6)	%	6	%	54,799			48,513				13		%
Trust services and investment management	6,961			7,453		8,147		7,292		7,131		(7)	%	(2)	%	29,853			28,491				5		%
Bankcard income	6,927			7,000		6,642		6,279		8,121		(1)	%	(15)	%	26,848			25,015				7		%
Other service charges	3,258			3,449		3,383		3,801		3,165		(6)	%	3	%	13,891			11,151				25		%
Miscellaneous revenue	15,061			13,746		13,835		14,366		10,607		10	%	42	%	57,008			40,294				41		%
Total noninterest income	69,218			79,855		80,277		79,958		70,541		(13)	%	(2)	%	309,308			258,627				20		%
Noninterest expense:
Employee compensation, incentives, and benefits	85,252			83,506		83,703		82,655		69,788		2	%	22	%	335,117			251,673				33		%
Other (d)	120,925			124,100		125,637		118,962		107,200		(3)	%	13	%	489,623			374,631				31		%
Total noninterest expense	206,177			207,606		209,340		201,617		176,988		(1)	%	16	%	824,740			626,304				32		%
Income before income taxes	$	154,851		$	166,689	$	173,004	$	167,064	$	126,486	(7)	%	22	%	$	661,608		$	457,602			45		%
PPNR (e)	162,700			174,734		177,929		171,522		135,917		(7)	%	20	%	686,885			478,943				43		%
Balance Sheet (millions)
Average loans	$	25,970		$	26,068	$	25,929	$	25,590	$	21,087	*		23	%	$	25,891		$	18,602			39		%
Average other earning assets	41			60		58		51		41		(32)	%	*	%	52			42				24		%
Total average earning assets	26,011			26,128		25,987		25,641		21,128		*		23	%	25,943			18,644				39		%
Total average deposits	28,355			27,595		27,427		27,120		22,382		3	%	27	%	27,627			20,564				34		%
Total period-end deposits	29,380			27,758		27,861		27,653		27,539		6	%	7	%	29,380			27,539				7		%
Total period-end assets	29,195			28,860		29,074		28,383		28,861		1	%	1	%	29,195			28,861				1		%
Key Statistics
Return on average assets (quarters are annualized) (f)	1.65%			1.77%		1.86%		1.84%		1.46%						1.78		%	1.51		%
Return on allocated equity (f) (g)	15.79%			16.64%		17.15%		16.79%		18.19%						16.60		%	23.21		%
Fee income to total revenue (f) (h)	18.76%			20.89%		20.73%		21.43%		22.54%						20.46		%	23.37		%
Efficiency ratio (f) (h)	55.89%			54.30%		54.06%		54.03%		56.63%						54.56		%	56.69		%
Net interest margin (i)	4.60%			4.63%		4.77%		4.66%		4.64%						4.67		%	4.61		%
Net interest spread	4.04%			4.09%		4.15%		4.03%		3.84%						4.07		%	3.70		%
Loan average yield	4.78%			4.70%		4.65%		4.39%		4.13%						4.63		%	3.96		%
Deposit average rate	0.74%			0.61%		0.50%		0.36%		0.29%						0.56		%	0.26		%
Net charge-offs/(recoveries)	$	12,597		$	3,693	$	4,325	$	2,696	$	11,429	NM		10	%	$	23,311		$	21,399			9		%
Financial center locations (j)	292			292		292		345		347		*		(16)	%

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

NM - Not meaningful

* Amount is less than one percent

(a) 4Q17 and 2017 include one month of activity related to the CBF acquisition.

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

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

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

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

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

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

(h) 2017 includes $386 thousand of securities gains/(losses).

(i) Net interest margin is computed using total net interest income adjusted for FTE assuming a statutory federal income tax rate of 21 percent and 35 percent in 2018 and 2017, respectively, and, where applicable, state income taxes.

(j) 2Q18 decrease driven by branch consolidation and integration efforts.

15

FHN FIXED INCOME

Quarterly/Annually, Unaudited

																4Q18 Changes vs.				Twelve Months Ended						2018 vs.
	4Q18			3Q18			2Q18			1Q18			4Q17			3Q18		4Q17		2018			2017			2017
Income Statement (thousands)
Net interest income	$	9,007		$	9,053		$	9,182		$	8,473		$	5,915		(1)	%	52	%	$	35,715		$	18,065			98	%
Noninterest income:
Fixed income product revenue	30,028			34,268			29,940			38,047			40,608			(12)	%	(26)	%	132,283			173,910				(24)	%
Other	9,648			6,855			8,423			7,558			14,642			41	%	(34)	%	32,484			43,172				(25)	%
Total noninterest income	39,676			41,123			38,363			45,605			55,250			(4)	%	(28)	%	164,767			217,082				(24)	%
Noninterest expense	46,962			47,047			47,548			49,947			54,637			*		(14)	%	191,504			208,921				(8)	%
Income/(loss) before income taxes	$	1,721		$	3,129		$	(3	)	$	4,131		$	6,528		(45)	%	(74)	%	$	8,978		$	26,226			(66)	%
Fixed income product average daily revenue	$	492		$	544		$	468		$	624		$	655		(10)	%	(25)	%	$	531		$	696			(24)	%
Balance Sheet (millions)
Average trading inventory	$	1,633		$	1,500		$	1,566		$	1,710		$	1,437		9	%	14	%	$	1,602		$	1,193			34	%
Average loans held-for-sale	608			617			539			487			363			(1)	%	67	%	563			259				NM
Average other earning assets	675			826			797			933			850			(18)	%	(21)	%	807			773				4	%
Total average earning assets	2,916			2,943			2,902			3,130			2,650			(1)	%	10	%	2,972			2,225				34	%
Total period-end assets	2,789			3,742			3,463			3,654			2,989			(25)	%	(7)	%	2,789			2,989				(7)	%
Key Statistics
Return on average assets (a)	0.18		%	0.31		%	0.03		%	0.38		%	0.58		%					0.22		%	0.69		%
Return on allocated equity (a) (b)	2.73		%	4.77		%	0.42		%	6.08		%	8.12		%					3.51		%	9.14		%
Efficiency ratio (a)	96.46		%	93.76		%	NM			92.36		%	89.33		%					95.52		%	88.85		%
Net interest margin (c)	1.25		%	1.26		%	1.30		%	1.09		%	0.95		%					1.22		%	0.87		%

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

* - Amount is less than one percent.

NM - Not meaningful

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

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

(c) Net interest margin is computed using total net interest income adjusted for FTE assuming a statutory federal income tax rate of 21 percent and 35 percent in 2018 and 2017, respectively, and, where applicable, state income taxes.

FHN CORPORATE

Quarterly/Annually, Unaudited

(a)																4Q18 Changes vs.						Twelve months ended						2018 vs.
	4Q18			3Q18			2Q18			1Q18			4Q17			3Q18			4Q17			2018			2017 (a)			2017
Income Statement (thousands)
Net interest income/(expense)	$	(15,355	)	$	(15,457	)	$	(17,153	)	$	(16,175	)	$	(16,770	)	1		%	8		%	$	(64,140	)	$	(59,383	)	(8	)	%
Noninterest income excluding securities gains/(losses) (b)	(1,386		)	9,761			8,704			9,225			6,518			NM			NM			26,304			8,672			NM
Securities gains/(losses), net (c)	(28		)	212,858			32			86			137			NM			NM			212,948			206			NM
Noninterest expense (d)	23,136			33,569			67,823			53,301			75,427			(31	)	%	(69	)	%	177,829			144,258			23		%
Income/(loss) before income taxes	$	(39,905	)	$	173,593		$	(76,240	)	$	(60,165	)	$	(85,542	)	NM			53		%	$	(2,717	)	$	(194,763	)	99		%
Average Balance Sheet (millions)
Average investment securities	$	4,582		$	4,675		$	4,773		$	4,859		$	4,273		(2	)	%	7		%	$	4,721		$	4,029		17		%
Total earning assets	$	5,732		$	5,211		$	5,249		$	5,382		$	4,792		10		%	20		%	$	5,394		$	5,071		6		%

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

NM - Not Meaningful

(a) 4Q17 and 2017 include one month of activity related to the CBF acquisition.

(b) 4Q18 includes a $1.8 million negative valuation adjustment on HFS consumer loans included in the Non-Strategic segment; 3Q18 and 1Q18 include $.8 million and $3.3 million, respectively, of gains on the sales of buildings; 4Q18, 2Q18 and 4Q17 include $1.0 million, $2.5 million, and $1.3 million, respectively, of BOLI policy gains.

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

(d) Quarterly and annual balances include acquisition- and integration-related expenses primarily associated with the CBF acquisition; 2Q18 includes $4.1 million of valuation adjustments associated with derivatives related to prior sales of Visa Class B shares; 4Q17 includes a $5.6 million charitable contribution to the First Tennessee Foundation, somewhat offset by $4.3 million of deferred compensation BOLI gains.

16

FHN NON-STRATEGIC

Quarterly/Annually, Unaudited

													(a)			4Q18 Changes vs.						Twelve Months Ended						2018 vs.
	4Q18			3Q18			2Q18			1Q18			4Q17			3Q18			4Q17			2018			2017 (a)			2017
Income Statement (thousands)
Net interest income	$	9,201		$	9,619		$	11,911		$	15,694		$	10,579		(4	)	%	(13	)	%	$	46,425		$	37,012		25	%
Provision/(provision credit) for loan losses	(1,849		)	(6,045		)	(4,925		)	(5,458		)	(6,431		)	69		%	71		%	(18,277		)	(21,341		)	14	%
Noninterest income (b)	2,794			5,375			149			1,143			744			(48	)	%	NM			9,461			5,632			68	%
Noninterest expense (c)	5,657			5,809			8,057			8,400			39,618			(3	)	%	(86	)	%	27,923			44,178			(37)	%
Income/(loss) before income taxes	$	8,187		$	15,230		$	8,928		$	13,895		$	(21,864	)	(46	)	%	NM			$	46,240		$	19,807		NM
Average Balance Sheet (millions)
Loans	$	1,068		$	1,170		$	1,274		$	1,372		$	1,342		(9	)	%	(20	)	%	$	1,220		$	1,418		(14)	%
Other assets	94			96			175			213			118			(2	)	%	(20	)	%	144			89			62	%
Total assets	1,162			1,266			1,449			1,585			1,460			(8	)	%	(20	)	%	1,364			1,507			(9)	%
Key Statistics
Return on average assets (d)	2.10		%	3.59		%	1.86		%	2.68		%	(3.67		)%							2.55		%	0.81		%
Return on allocated equity (d) (e)	25.46		%	35.66		%	19.57		%	31.78		%	(42.28		)%							28.16		%	9.02		%
Fee income to total revenue (d)	23.29		%	35.85		%	1.24		%	6.79		%	6.57		%							16.93		%	13.21		%
Efficiency ratio (d)	47.16		%	38.74		%	66.81		%	49.89		%	NM									49.96		%	NM
Net interest margin (f)	3.15		%	3.01		%	3.30		%	3.96		%	2.86		%							3.40		%	2.43		%
Net charge-offs/(recoveries)	$	(1,062	)	$	(2,190	)	$	(2,593	)	$	(1,335	)	$	(3,117	)	52		%	66		%	$	(7,180	)	$	(8,886	)	19	%

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

NM - Not meaningful

(a) 4Q17 and 2017 include one month of activity related to the CBF acquisition.

(b) 3Q18 includes a $3.8 million gain from the reversal of a previous valuation adjustment due to sales of TRUPS loans.

(c) 4Q17 includes $32.0 million of loss accruals related to legal matters.

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

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

(f) Net interest margin is computed using total net interest income adjusted for FTE assuming a statutory federal income tax rate of 21 percent and 35 percent in 2018 and 2017, respectively, and, where applicable, state income taxes.

17

FHN ASSET QUALITY: CONSOLIDATED

Quarterly, Unaudited 

																					4Q18 Changes vs.
(Dollars in thousands)	4Q18				3Q18				2Q18				1Q18				4Q17				3Q18	4Q17
Allowance for Loan Losses Walk-Forward
Beginning reserve	$	185,959			$	185,462			$	187,194			$	189,555			$	194,867			*	(5)%
Provision/(provision credit) for loan losses	6,000				2,000				—				(1,000			)	3,000				NM	NM
Charge-offs	(17,824			)	(9,482			)	(10,008			)	(8,483			)	(17,481			)	(88)%	(2)%
Recoveries	6,289				7,979				8,276				7,122				9,169				(21)%	(31)%
Ending balance	$	180,424			$	185,959			$	185,462			$	187,194			$	189,555			(3)%	(5)%
Reserve for unfunded commitments	7,618				7,581				6,536				4,613				5,079				*	50%
Total allowance for loan losses plus reserve for unfunded commitments	$	188,042			$	193,540			$	191,998			$	191,807			$	194,634			(3)%	(3)%
Consolidated Key Ratios (a)
30+ Delinq. % (b)	0.27		%		0.35		%		0.31		%		0.29		%		0.33		%
NPL % (c)	0.54				0.54				0.45				0.48				0.47
NPA %	0.62				0.63				0.55				0.60				0.61
Net charge-offs % (d)	0.17				0.02				0.03				0.02				0.15
Allowance / loans %	0.66				0.68				0.67				0.69				0.69
Allowance / NPL	1.22		x		1.27		x		1.49		x		1.42		x		1.45		x
Allowance / NPA	1.06		x		1.08		x		1.23		x		1.14		x		1.11		x
Allowance / net charge-offs	3.94		x		31.20		x		26.70		x		33.90		x		5.75		x
Other
Loans past due 90 days or more and still accruing (e)	$	39,992			$	49,352			$	44,467			$	52,700			$	48,047			(19)%	(17)%
Guaranteed portion (e)	7,237				7,772				8,412				9,076				9,454				(7)%	(23)%
Period-end loans, net of unearned income (millions)	27,536				27,350				27,702				27,250				27,659				1%	*

NM - Not meaningful

* Amount is less than one percent.

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

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

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

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

(e) Includes loans held-for-sale.

18

FHN ASSET QUALITY: CONSOLIDATED

Quarterly, Unaudited 

																4Q18 Changes vs.
	4Q18			3Q18			2Q18			1Q18			4Q17			3Q18	4Q17
Key Portfolio Details
C&I
Period-end loans ($ millions)	$	16,515		$	16,044		$	16,439		$	15,828		$	16,057		3%	3%
30+ Delinq. % (a)	0.06		%	0.15		%	0.14		%	0.16		%	0.19		%
NPL % (b)	0.24			0.26			0.12			0.18			0.19
Charge-offs % (qtr. annualized) (d)	0.20			0.01			0.06			0.01			0.28
Allowance / loans %	0.60		%	0.63		%	0.59		%	0.63		%	0.61		%
Allowance / net charge-offs	3.06		x	74.66		x	10.73		x	44.48		x	2.52		x
Commercial Real Estate
Period-end loans ($ millions)	$	4,031		$	4,237		$	4,136		$	4,234		$	4,215		(5)%	(4)%
30+ Delinq. % (a) (c)	0.06		%	0.20		%	0.06		%	0.08		%	0.15		%
NPL %	0.07			0.02			0.03			0.02			0.03
Charge-offs % (qtr. annualized)	0.05			NM			0.01			0.00			NM
Allowance / loans %	0.78		%	0.80		%	0.82		%	0.69		%	0.67		%
Allowance / net charge-offs	15.45		x	NM			55.04		x	NM			NM
Consumer Real Estate
Period-end loans ($ millions)	$	6,129		$	6,191		$	6,223		$	6,247		$	6,368		(1)%	(4)%
30+ Delinq. % (a)	0.73		%	0.74		%	0.68		%	0.57		%	0.65		%
NPL %	1.35			1.30			1.28			1.22			1.12
Charge-offs % (qtr. annualized)	NM			NM			NM			NM			NM
Allowance / loans %	0.43		%	0.43		%	0.51		%	0.52		%	0.59		%
Allowance / net charge-offs	NM			NM			NM			NM			NM
Permanent Mortgage
Period-end loans ($ millions)	$	343		$	347		$	355		$	380		$	399		(1)%	(14)%
30+ Delinq. % (a)	2.51		%	2.59		%	1.92		%	2.63		%	1.85		%
NPL %	6.32			6.43			6.87			6.65			6.61
Charge-offs % (qtr. annualized)	NM			NM			NM			0.10			0.10
Allowance / loans %	3.20		%	3.88		%	3.97		%	4.07		%	3.90		%
Allowance / net charge-offs	NM			NM			NM			40.18		x	37.67		x
Credit Card and Other
Period-end loans ($ millions)	$	518		$	531		$	549		$	561		$	620		(2)%	(16)%
30+ Delinq. % (a)	1.63		%	1.64		%	1.80		%	0.98		%	1.24		%
NPL %	0.12			0.13			0.07			0.18			0.03
Charge-offs % (qtr. annualized)	3.32			3.32			2.61			2.15			2.30
Allowance / loans %	2.46		%	2.21		%	1.63		%	1.73		%	1.61		%
Allowance / net charge-offs	0.73		x	0.66		x	0.62		x	0.76		x	0.99		x

NM - Not meaningful

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

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

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

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

19

FHN NON-GAAP TO GAAP RECONCILIATION

Quarterly/Annually, Unaudited

																	Twelve Months Ended
(Dollars and shares in thousands, except per share data)	4Q18			3Q18			2Q18			1Q18			4Q17				2018			2017
Tangible Common Equity (Non-GAAP)
(A) Total equity (GAAP)	$	4,776,886		$	4,741,931		$	4,549,749		$	4,572,528		$	4,580,488			$	4,776,886		$	4,580,488
Less: Noncontrolling interest (a)	295,431			295,431			295,431			295,431			295,431				295,431			295,431
Less: Preferred stock (a)	95,624			95,624			95,624			95,624			95,624				95,624			95,624
(B) Total common equity	$	4,385,831		$	4,350,876		$	4,158,694		$	4,181,473		$	4,189,433			$	4,385,831		$	4,189,433
Less: Intangible assets (GAAP) (b)	1,581,358			1,571,317			1,577,231			1,572,916			1,571,242				1,581,358			1,571,242
(C) Tangible common equity (Non-GAAP)	$	2,804,473		$	2,779,559		$	2,581,463		$	2,608,557		$	2,618,191			$	2,804,473		$	2,618,191
Tangible Assets (Non-GAAP)
(D) Total assets (GAAP)	$	40,833,117		$	40,635,924		$	41,076,795		$	40,463,195		$	41,423,388			$	40,833,117		$	41,423,388
Less: Intangible assets (GAAP) (b)	1,581,358			1,571,317			1,577,231			1,572,916			1,571,242				1,581,358			1,571,242
(E) Tangible assets (Non-GAAP)	$	39,251,759		$	39,064,607		$	39,499,564		$	38,890,279		$	39,852,146			$	39,251,759		$	39,852,146
Average Tangible Common Equity (Non-GAAP)
(F) Average total equity (GAAP)	$	4,730,698		$	4,611,302		$	4,552,546		$	4,573,916		$	3,506,165			$	4,617,529		$	2,970,308
Less: Average noncontrolling interest (a)	295,431			295,431			295,431			295,431			295,431				295,431			295,431
Less: Average preferred stock (a)	95,624			95,624			95,624			95,624			95,624				95,624			95,624
(G) Total average common equity	$	4,339,643		$	4,220,247		$	4,161,491		$	4,182,861		$	3,115,110			$	4,226,474		$	2,579,253
Less: Average intangible assets (GAAP) (b)	1,569,533			1,572,886			1,569,449			1,568,029			726,958				1,569,987			376,306
(H) Average tangible common equity (Non-GAAP)	$	2,770,110		$	2,647,361		$	2,592,042		$	2,614,832		$	2,388,152			$	2,656,487		$	2,202,947
Annualized Net Income/(loss) Available to Common Shareholders
(I) Net income/(loss) available to common shareholders (annualized) (GAAP)	$	382,238		$	1,072,318		$	327,257		$	367,531		$	(209,641	)		$	538,842		$	159,315
Period-end Shares Outstanding
(J) Period-end shares outstanding	318,573			323,943			325,003			327,194			326,736				318,573			326,736
Ratios
(I)/(G) Return on average common equity (“ROCE”) (GAAP)	8.81		%	25.41		%	7.86		%	8.79		%	(6.73		)	%	12.75		%	6.18		%
(I)/(H) Return on average tangible common equity (“ROTCE”) (Non-GAAP)	13.80		%	40.51		%	12.63		%	14.06		%	(8.78		)	%	20.28		%	7.23		%
(A)/(D) Total equity to total assets (GAAP)	11.70		%	11.67		%	11.08		%	11.30		%	11.06			%	11.70		%	11.06		%
(C)/(E) Tangible common equity to tangible assets (“TCE/TA”) (Non-GAAP)	7.14		%	7.12		%	6.54		%	6.71		%	6.57			%	7.14		%	6.57		%
(B)/(J) Book value per common share (GAAP)	$	13.77		$	13.43		$	12.80		$	12.78		$	12.82			$	13.77		$	12.82
(C)/(J) Tangible book value per common share (Non-GAAP)	$	8.80		$	8.58		$	7.94		$	7.97		$	8.01			$	8.80		$	8.01

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

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

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

20

FHN GLOSSARY OF TERMS

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

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

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

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

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

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

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

Key Ratios

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

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

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

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

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

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

Asset Quality - Consolidated Key Ratios

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

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

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

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

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

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

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

21

EX-99.2

First Horizon National Corporation Fourth Quarter 2018 Earnings January 18, 2019

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

4Q18 & 2018 Highlights Strong Fundamentals, Delivering Profitable Growth & High Returns Dominate Tennessee 2018 EPS • Deposit growth of 5% LQ • Loan growth of 1% LQ Reported $1.65 +154% 1 Adjusted $1.41 +27% Profitably grow key markets & specialty areas • Strong growth in Middle-TN, Mid-Atlantic, & South Florida 2018 ROE ￮ Deposits up 5% LQ Reported 12.1% +609bps ￮ Loans up 2% LQ 1 Adjusted 10.5% +57bps Optimize the expense base 2018 ROTCE1 • Expense decline of 4% LQ • Achieved merger cost saves for 2018 Reported 20.3% +1,305bps 1 Adjusted 17.7% +506bps Effective capital deployment 2 • Repurchased ~$80mm shares in 4Q18 2018 ROA • Total payout ratio of 124% of 4Q18 +79bps • TBV per share up ~3% LQ Reported 1.38% 1 Adjusted 1.19% +22bps All comparisons are 2018 vs 2017, unless otherwise noted. All Deposit and Loan growth metrics are calculated with period-end balances. LQ – Linked Quarter. 1Adjusted EPS, Adjusted ROE, ROTCE, Adjusted ROTCE , Adjusted ROA are Non-GAAP numbers and are reconciled in the appendix. Adjusted numbers exclude notable items as outlined in the appendix. 3 2Weighted average price for shares repurchased in 4Q18 was $15.00.

FINANCIAL RESULTS 4

Financial Results Actual Adjusted 4Q18 3Q18 4Q18 3Q18 LQ % LQ % • NII slightly down from lower accretion and Actual Actual Adjusted¹ Adjusted¹ loans to mortgage company seasonality $ in millions except per share data Change Change Net Interest Income $303 $306 -1% $303 $306 -1% • Fee income decline driven by $8mm in Fee Income $110 $349 -68% $121 $136 -11% deferred compensation and non-recurring Total Revenue $413 $655 -37% $423 $442 -4% $4mm gain in 3Q18 Expense $282 $294 -4% $270 $283 -4% • Expenses down due to deferred Loan Loss Provision $6 $2 NM $6 $2 NM compensation ($9mm) and FDIC Pre-Tax Income $125 $359 -65% $147 $157 -7% insurance ($3mm) NIAC2 $96 $270 -64% $113 $118 -4% • Loan loss provision at $6mm reflecting EPS $0.30 $0.83 -64% $0.35 $0.36 -3% stability at Regional Bank and a Avg Loans ($B) $27.2 $27.3 -1% $27.2 $27.3 -1% decreased provision credit in Non-Strategic Avg Deposits ($B) $31.8 $30.8 +3% $31.8 $30.8 +3% • Strong core loan and deposit growth 4Q18 Net Income Available to Common (NIAC) & EPS Reconciliation ￮ Regional Bank period-end loans up 1% LQ Amount Amount Per Share $ in millions except per share data Pre-tax After-tax EPS Impact ￮ Regional Bank period-end deposits 4Q18 Adjusted1 $147 $113 $0.35 up 6% LQ Notable Items: Return of excess fees from Capital Bank Debit Cards ($9) ($7) ($0.02) Acquisition Related Items ($13) ($10) ($0.03) 4Q18 Reported $125 $96 $0.30 NM - Not Meaningful. LQ – Linked Quarter. Numbers may not add to total due to rounding. 1Adjusted Fee Income, Revenue, Expense, Pre-Tax Income, NIAC, and EPS are Non-GAAP numbers and are reconciled in the appendix. Adjusted numbers exclude notable items as outlined in the appendix. EPS and Adjusted EPS 5 calculated using 323.9mm shares. 2Net Income Available to Common (NIAC) includes the impact from $3mm of noncontrolling interest and $1.6mm of preferred stock dividends.

Profitably Grow in Key Markets Momentum in Tennessee, Mid-Atlantic and South Florida • Total period-end deposit growth of 5% LQ ￮ Regional Bank growth of 6% with increases across all markets • Growth in new markets presents opportunity to increase customer deposits ￮ Average deposit cost in Mid-Atlantic is 80bps and Florida is 96bps vs market-indexed rate of 235bps Deposit Growth & Stable Mix Strong LQ Deposit Growth in Key Markets (Period-end Balances) (Avg. Balances) $31.8B $30.2B $30.7B $30.8B Tennessee Mid-Atlantic South FL $24.9B 14% 15% 15% 16% $17.5B $4.3B $1.9B 16% 18% 18% 18% 19% +5% +4% +10% 15% 42% 41% 41% 41% 41% $4.2B $1.7B $16.7B 28% 26% 26% 26% 25% 4Q17 1Q18 2Q18 3Q18 4Q18 Non-Interest Consumer Interest Commercial Interest Market-Indexed 3Q18 4Q18 3Q18 4Q18 3Q18 4Q18 LQ – Linked Quarter. 6

Driving Profitable Loan Growth Economic Profit Focus Driving Improved Loan Portfolio Mix • Period-end core commercial loans up 5% LQ ￮ Tennessee growth of 5% LQ ￮ Key market growth of 4% LQ in Middle Tennessee, Mid-Atlantic and South Florida • Growth in specialty areas such as correspondent, healthcare, and asset-based lending ￮ CRE growth impacted by ~$275mm of pay-offs related to completion of construction projects and sales ￮ Loans to mortgage companies at $2.0B in 4Q18, declined slightly LQ from seasonality • Revenue synergies of $27mm in 2018 with $9mm in 4Q18 Total Period-End Loan Growth Core Commercial Loan Growth Outpaces Peers2 ($ in millions) (Period-end Balances) Regional Bank +4% Annualized $27,536 5% +$55 +$72 $27,350 3% ($65) +$370 ($246) Regional Bank H.8 C&I² 3Q18 Non-Strategic CRE & Mtg. Core Other Consumer 4Q18 Core Commercial 4Q18 Growth Run-off & Warehouse Commercial Specialty¹ 4Q18 Growth Corporate Segment LQ – Linked Quarter. 1Other Specialty is specialty loans excluding CRE and Loans to Mortgage Companies. 2Growth represents the LQ change in aggregate C&I loans for small domestically chartered commercial banks. Source: January 11, 2019 H.8 Assets and Liabilities of Commercial Banks in the United States, 7 Federal Reserve Board.

Net Interest Income & Net Interest Margin Trends • NIM declined LQ primarily due to higher cash Loan Betas Have Outpaced Deposit Betas balances resulting from strong deposit growth 6.00% 59% 38% 4.88% 5.00% Loan vs. Deposit • Increase in market-index deposits due to equity Beta Beta market volatility and subsequent inflows 4.00% 3.65% • With a reduced need for wholesale funding, two 3.00% 2.22% market-index contracts of $200mm cancelled 2.00% 0.92% 1.00% • CBF related loan accretion of $70mm booked to 0.12% date with $126mm remaining 0.00% Fed Funds Rate Loan Yield Total Deposit Cost NII and NIM Linked-Quarter Change Drivers NIM Outlook 2019 Outlook ($ in millions) NII NIM Range 2019 Outlook 3Q18 - Reported $305.7 3.44% 3.50% Key Assumptions Less: 3Q18 CBF Loan Accretion -$14.4 -16bps 3Q18 - Core1 $291.3 3.28% 3.40% • Jun 19 Fed Funds Deposit Growth & Mix +$1.1 +1bps 3.38% Rate Increase Loans to Mtg. Companies Balance -$1.9 -1bps Interest Bearing Cash -$0.4 -4bps • 3% - 6% Loan & Deposit Cash Basis, Loan Fees, & Other -$1.3 -2bps 3.23% Growth 4Q18 - Core1 $288.8 3.23% 4Q18 CBF Loan Accretion +$13.7 +15bps 4Q18 4Q18 - Reported $302.5 3.38% NIM - Core¹ NIM LQ – Linked Quarter. Numbers may not add to total due to rounding. 1Core excludes the accretion from CBF’s loans, and is a Non-GAAP number reconciled in the table found on this slide. The average earning assets impact from CBF’s loan accretion was $130mm in 8 4Q18 and $142mm in 3Q18.

Optimizing The Expense Base • Achieved $53mm of merger cost saves in 2018 • LQ declines in FDIC expense, professional fees, employee compensation ￮ Significant decrease of $9mm in deferred compensation, largely driven by valuation declines based on equity market performance • Continued focus on positive operating leverage Cost Savings On Track - 100% Realization In 2019 Expense Trends ($ in millions) ~$53mm ~$85mm 2018 Annual Cost Saves 2019 Annual Cost Saves $347 $313 $333 $294 $282 $21mm $22mm $22mm $19mm $16mm $16mm $12mm $282 $285 $283 $8mm $258 $270 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 4Q17 1Q18 2Q18 3Q18 4Q18 Achieved Expected Adjusted¹ Reported Numbers may not add to total due to rounding. 1Adjusted Revenue and Expense are Non-GAAP numbers and are reconciled in the appendix. Adjusted numbers exclude notable items as outlined in the appendix. 9

Asset Quality • Annual net charge-off ratio1 at 6bps in 2018 Asset Quality Highlights ￮ NCO ratio1 0.17% in 4Q18 vs 0.15% in 4Q17 ($ in millions) 4Q17 1Q18 2Q18 3Q18 4Q18 ￮ In 4Q18, $12mm in charge-offs, primarily Charge-offs ($17) ($8) ($10) ($9) ($18) related to two C&I credits Recoveries $9 $7 $8 $8 $6 ￮ In 4Q18, 30-day delinquencies down Net Charge-offs $8 $1 $2 $2 $12 8bps LQ to 0.27% Provision/(Credit) $3 ($1) $0 $2 $6 • PD grades remain stable in commercial portfolios • Consumer FICO scores strong at 756 Allowance for Loan Losses • CBF credit performance as expected $28B $27B $28B $27B $28B • Allowance to loans ratio remains steady at 66bps 69bps 69bps 67bps 68bps 66bps 4Q17 1Q18 2Q18 3Q18 4Q18 Period-end Loans ALLL to Loans Ratio LQ – Linked Quarter. YOY – Year over Year. Numbers may not add to total due to rounding. 1Net charge-off % is annualized and as % of average loans. 10

2019 Outlook: Building from a Position of Strength Efficiency ROTCE1 ROA NIM Ratio NCOs CET1 2018 Reported 20.3% 1.38% 3.45% 71% 6bps 9.8% Adjusted 17.7%1 1.19%1 3.45% 64%1 6bps 9.8% 2019 17% -18% 1.20% - 1.30% 3.40% - 3.50% 60% - 62% <10bps 9.5% - 10% 3% - 6% Jun 19 Fully Phased In 35% - 70% Key Assumptions Loan & Deposit Fed Funds Merger Total Payout Growth Rate Increase Cost Savings Ratio 12018 ROTCE, Adjusted ROTCE, Adjusted ROA, and Adjusted Efficiency Ratio are Non-GAAP numbers, which are reconciled in the Appendix. 11

Top-Quartile Returns Better Risk Profile Evolving the Bonefish: Long-term Objectives Profitable Growth Enhanced Operating Leverage 12

APPENDIX 13

Select C&I and CRE Portfolio Metrics Regional Bank Average Commercial Loans C&I: Loans to Mortgage Companies 1% 2% Specialty Energy Areas Correspondent 4% $2.4 $2.1 4% Franchise Finance $2.1 $2.1 $2.0 $2.0 $1.9 $1.9 5% $1.9 $1.9 $1.8 Healthcare $1.5 41% 10% Corporate 4Q18 Loans to Mortage Co. Asset-Based Lending 11% Commercial Real Estate 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 5% Business Banking 17% Period-end Balance ($B) Average Balance ($B) Commercial CRE: Collateral Type CRE: Geographic Distribution 1% Land NC Hospitality 11% 16% TN 26% 31% Other FL 13% 6% Industrial SC 4Q18 6% 4Q18 Office TX 13% 8% Retail 19% GA 18% Multi-Family 17% 14% Other Numbers may not add to total due to rounding. 14

Consumer Portfolio & Non-Strategic Overview HELOC Draw vs Repayment Balances Home Equity Portfolio In Draw In Repayment 65% $1.1B $0.4B 4Q18 6% 6% 7% 8% 8% 0-12 13-24 25-36 37-48 49-60 >60 Months Left in Draw Period Non-Strategic Consumer Real Estate Mortgage Repurchase Reserve $594mm $540mm ($ in millions) 4Q17 1Q18 2Q18 3Q18 4Q18 $489mm $442mm $405mm Beginning Balance $34 $34 $33 $32 $32 38% Net Realized Losses ($0) $0 ($1) $0 ($0) 36% 35% 33% 32% Provision Credit $0 ($0) ($0) ($1) ($0) 4Q17 1Q18 2Q18 3Q18 4Q18 Ending Balance $34 $33 $32 $32 $32 Period-end Balance Constant Pre-Payment Rate Data as of 4Q18 unless noted otherwise. Numbers may not add to total due to rounding. 15

Notable Items – 2017 & 2018 Pre-Tax Pre-Tax 2017 Amount1 2018 Amount1 Acquisition Expense ($31.4mm) 1Q None Gain on property sale $3.3mm Mortgage Repurchase Reserve Release $20.0mm Acquisition Expense ($43.2mm) Acquisition Expense ($6.4mm) 2Q Effective tax rate adjustment associated with reversal of a capital loss deferred tax $19.5mm Other Expense (Visa Shares) ($4.1mm) valuation allowance1 Loss on equity securities repurchase ($14.3mm) Acquisition Expense ($8.2mm) Acquisition Expense ($11.4mm) Legal Matters ($8.2mm) 3Q Tax rate adjustments primarily associated with the reversal of a capital loss deferred $13.7mm Visa B Share Monetization $212.9mm tax valuation allowance and certain discrete period items1 1 Tax Reform-Related Adjustments ($82.0mm) Acquisition Expense ($11.6mm) Other Tax Adjustments1 $10.7mm 4Q Acquisition Expense ($46.7mm) Acquisition: Fee-income Adjustment ($1.8mm) Legal Matters ($32.1mm) Return of excess fees from Capital Bank ($8.7mm) Employee Bonuses ($9.9mm) Debit Cards 1All notable item amounts are calculated on a pre-tax basis with the exception of the tax adjustments in 2Q17, 3Q17, and 4Q17. 16

Capital Bank Acquisition Expenses ($ in millions) 4Q18 3Q18 2Q18 1Q18 4Q17 3Q17 2Q17 Employee compensation, incentives and benefits (a) $1.2 $2.0 $2.5 $3.9 $16.8 $0.2 $ - Occupancy (b) $2.9 $0.1 $2.2 $ - $ - $ - $ - Miscellaneous expense (c) $1.1 $1.4 $3.1 $2.0 $1.0 $0.1 $0.1 Professional fees (d) $3.1 $4.6 $9.0 $5.6 $20.1 $3.5 $4.5 Contract employment and outsourcing (e) $ - $0.6 $1.7 $1.4 $0.9 $0.4 $ - All other expense (f) $2.0 $1.5 $23.2 $17.0 $6.2 $2.8 $ - Total Capital Bank Merger and Integration Expense $10.3 $10.2 $41.8 $30.1 $45.1 $7.0 $4.6 (a) Primarily comprised of fees for severance and retention. (b) Primarily relates to fees associated with lease exit accruals. (c) Consists of fees for operations services, communications and courier, equipment rentals, depreciation, and maintenance, supplies, travel and entertainment, computer software, and advertising and public relations. (d) Primarily comprised of fees for legal, accounting, and merger consultants (e) Primarily relates to fees for temporary assistance for merger and integration activities. (f) Primarily relates to contract termination charges, costs of shareholder matters and asset impairments related to the integration, as well as other miscellaneous expenses. Integration activities were substantially completed in second quarter 2018. This table shows acquisition expense related to the CBF transaction only and does not include expense from other acquisitions. 17

Reconciliation to GAAP Financials Slides in this presentation use non-GAAP information of adjusted fee income, adjusted revenue, adjusted noninterest expense, adjusted pre-tax income, adjusted net income available to common, and adjusted earnings per share. That information is not presented according to generally accepted accounting principles (GAAP) and is reconciled to GAAP information below. ($ in millions) 2018 2017 % Change 4Q18 3Q18 % Change 2Q18 1Q18 4Q17 Adjusted Fee Income & Revenue Revenue (GAAP) $1,943 $1,333 46% $413 $655 -37% Fee Income (GAAP) $723 $490 47% $110 $349 -68% Plus: Notable Items (GAAP) -$206 $14 NM $10 -$213 NM Adjusted Fee Income (Non-GAAP) $517 $505 2% $121 $136 -11% N/A N/A N/A Plus: Net Interest Income (GAAP) $1,220 $842 45% $303 $306 -1% Adjusted Revenue (Non-GAAP) $1,737 $1,347 29% $423 $442 -4% N/A N/A N/A Adjusted Noninterest Expense Noninterest Expense (GAAP) $1,222 $1,024 19% $282 $294 -4% $333 $313 $347 Plus: Notable Items (GAAP) -$102 -$91 11% -$12 -$11 2% -$47 -$31 -$89 Adjusted Noninterest Expense (Non-GAAP) $1,120 $932 20% $270 $283 -4% $285 $282 $258 Adjusted Pre-Tax Income Pre-Tax Income (GAAP) $714 $309 NM $125 $359 -65% Plus: Notable Items (GAAP) -$104 $106 NM $22 -$201 NM Adjusted Pre-Tax Income (Non-GAAP) $610 $415 47% $147 $157 -7% N/A N/A N/A Adjusted Net Income Net Income (GAAP) $557 $177 NM $101 $275 -63% Plus: Tax-affected Notable Items (GAAP)1 -$78 $112 NM $17 -$153 NM Adjusted Net Income (Non-GAAP) $478 $289 66% $118 $122 -4% N/A N/A N/A Adjusted Net Income Available to Common (NIAC) & Earnings Per Share (EPS) Net Income Available to Common (GAAP) $539 $159 NM $96 $270 -64% Plus: Tax-affected Notable Items (GAAP)1 -$78 $112 NM $17 -$153 NM Adjusted Net Income Available to Common (Non-GAAP) (a) $461 $271 70% $113 $118 -4% N/A N/A N/A Average Common Diluted Shares (GAAP) (b) 327 244 34% 324 327 -1% Adjusted Average Common Diluted Shares (Non-GAAP) (b) 327 244 34% 324 327 -1% Earnings Per Share (GAAP) $1.65 $0.65 NM $0.30 $0.83 -64% N/A N/A N/A Adjusted Earnings Per Share (Non-GAAP) (a/b) $1.41 $1.11 27% $0.35 $0.36 -3% N/A N/A N/A Numbers may not add to total due to rounding. NM – Not Meaningful. N/A – Not Applicable. 1Tax-affected notable items assume an effective tax rate of ~24% in 2018, 4Q18, 3Q18, and ~32% in 2017. 18

Reconciliation to GAAP Financials Slides in this presentation use non-GAAP information of adjusted efficiency ratio, return on tangible common equity, adjusted return on tangible common equity, adjusted return on average assets, and adjusted return on equity. That information is not presented according to generally accepted accounting principles (GAAP) and is reconciled to GAAP information below. ($ in millions) 2018 2017 Variance Adjusted Efficiency Ratio Noninterest Expense (GAAP) (a) $1,222 $1,024 Revenue Excluding Securities Gains (GAAP) (b) $1,730 $1,332 Efficiency Ratio (GAAP) (a/b) 71% 77% N/A Adjusted Noninterest Expense1 (Non-GAAP) (c) $1,120 $932 Adjusted Revenue1 Excluding Securities Gains (Non-GAAP) (d) $1,737 $1,346 Adjusted Efficiency Ratio (Non-GAAP) (c/d) 64% 69% N/A Return on Tangible Common Equity (ROTCE) Average Total Equity (GAAP) $4,618 $2,970 Less: Average Noncontrolling Interest (GAAP) -$295 -$295 Less: Average Preferred Stock (GAAP) -$96 -$96 Average Common Equity (GAAP) (e) $4,226 $2,579 Less: Average Intangible Assets (GAAP) -$1,570 -$376 Average Tangible Common Equity (Non-GAAP) (f) $2,656 $2,203 Annualized Net Income Available to Common (GAAP) (g) $539 $159 Return on Average Common Equity (ROCE) (GAAP) (g/e) 12.7% 6.2% 657bps Return on Average Tangible Common Equity (ROTCE) (Non-GAAP) (g/f) 20.3% 7.2% 1,305bps Adjusted Return on Tangible Common Equity (ROTCE) Annualized Adjusted Net Income Available to Common1 (Non-GAAP) (h) $461 $271 Average Tangible Common Equity (Non-GAAP) (f) $2,656 $2,203 Less: Equity impact for notable items2 -$46 -$49 Adjusted Average Tangible Common Equity (Non-GAAP) (i) $2,610 $2,154 Adjusted Return on Average Tangible Common Equity (ROTCE) (Non-GAAP) (h/i) 17.7% 12.6% 506bps Adjusted Return on Average Assets (ROA) Annualized Net Income (GAAP) (j) $557 $177 Average Total Assets (GAAP) (k) $40,225 $29,925 Return on Average Assets (GAAP) (j/k) 1.38% 0.59% 79bps Annualized Adjusted Net Income1 (Non-GAAP) (l) $478 $289 Average Total Assets (GAAP) (k) $40,225 $29,925 Adjusted Return on Average Assets (Non-GAAP) (l/k) 1.19% 0.96% 23bps Adjusted Return on Equity (ROE) Annualized Net Income (GAAP) (j) $557 $177 Average Total Equity (GAAP) (m) $4,618 $2,970 Return on Equity (ROE) (GAAP) (j/m) 12.1% 6.0% 609bps Annualized Adjusted Net Income1 (Non-GAAP) (l) $478 $289 Average Total Equity (GAAP) (m) $4,618 $2,970 Less: Equity impact for notable items2 -$46 -$49 Adjusted Average Total Equity (Non-GAAP) (n) $4,571 $2,921 Adjusted Return on Equity (ROE) (Non-GAAP) (l/n) 10.5% 9.9% 57bps Numbers may not add to total due to rounding. N/A – Not Applicable. 1Adjusted Noninterest Expense, Adjusted Revenue, Adjusted Net Income Available to Common, and Adjusted Net Income are Non-GAAP numbers that are reconciled on the previous slide. 2Includes the average after-after tax impact of -$78.2mm of notable items recognized in 2018 and $111.8mm of notable items recognized in 2017. 19