8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported) – July 17, 2009

FIRST HORIZON NATIONAL CORPORATION

(Exact Name of Registrant as Specified in Charter)

TENNESSEE
(State or Other Jurisdiction
of Incorporation) 001-15185
(Commission
File Number) 62-0803242
(IRS Employer
Identification No.)

165 MADISON AVENUE
MEMPHIS, TENNESSEE
(Address of Principal Executive Office) 38103
(Zip Code)

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

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 (see General Instruction A.2. below):

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))

TABLE OF CONTENTS

	ITEM 7.01. REGULATION FD DISCLOSURE
	ITEM 9.01. Financial Statements and Exhibits
SIGNATURES
Exhibit Index
EX-99.1

ITEM 7.01. REGULATION FD DISCLOSURE

Furnished as Exhibit 99.1 is a copy of First Horizon National Corporation Second Quarter 2009 Financial Supplement and Investor Slide Presentation which are scheduled to be released July 17, 2009.

ITEM 9.01. Financial Statements and Exhibits

(c) Exhibits

The following exhibit is furnished pursuant to Item 7.01, is 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 First Horizon National Corporation’s (“Corporation”) previous or future filings under the Securities Act of 1933, as amended, or the Exchange Act.

Exhibit #	Description
99.1	First Horizon National Corporation Second Quarter 2009 Financial Supplement and Investor Slide Presentation.

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: July17, 2009	By:	/s/ William C. Losch III
		Name:	William C. Losch III
		Title:	Executive Vice President and Chief Financial Officer

Exhibit Index

The following exhibit is furnished pursuant to Item 7.01 is not to be considered “filed” under the Exchange Act, and shall not be incorporated by reference into any of the Corporation’s previous or future filings under the Securities Act of 1933, as amended, or the Exchange Act.

Exhibit #	Description
99.1	First Horizon National Corporation Second Quarter 2009 Financial Supplement and Investor Slide Presentation.

EX-99.1

Exhibit 99.1

SECOND QUARTER 2009

FINANCIAL SUPPLEMENT

If you need further information, please contact:
Dave Miller, Investor Relations
901-523-4162
dwmiller@firsthorizon.com

1

TABLE OF CONTENTS

	Page
First Horizon National Corporation Segment Structure		3
Performance Highlights		4
Charges for Restructuring, Repositioning, & Efficiency Initiatives		6
Consolidated Results
Income Statement
Summary Income Statement		7
Income Statement		8
Other Income and Other Expense		9
Balance Sheet
Period End Balance Sheet		10
Average and Period End Loans		11
Average Balance Sheet		12
Average Balance Sheet: Income & Expense		13
Average Balance Sheet: Yields & Rates		14
Mortgage Servicing Rights		15
Business Segment Detail
Segment Highlights		16
Regional Banking		17
Capital Markets		18
National Specialty Lending		19
Mortgage Banking		20
Mortgage Banking: Servicing		21
Corporate		22
Capital Highlights		23
Asset Quality
Asset Quality: Consolidated		24
Analysis of FAS 114 Loans, ORE, & NPL Rollforward		26
Asset Quality: Regional Banking		27
Asset Quality: National Specialty Lending		28
Asset Quality: Mortgage Banking & Capital Markets		29
Asset Quality Highlights: Key Portfolios — Commercial		30
Asset Quality Highlights: Key Portfolios — Consumer		31
Asset Quality Process		32
Glossary of Terms		33
Non-GAAP to GAAP Reconciliation		34
Other Information

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

Use of Non-GAAP Measures

Certain capital-related non-GAAP ratios are included in this financial supplement. FHN’s management believes such ratios are relevant to understanding the capital position of the Company. The non-GAAP ratios presented in this Financial Supplement are tangible common equity to tangible common assets, tangible book value per common share, tier 1 common to risk weighted assets, and adjusted tangible common equity to risk weighted assets. These ratios are reported to FHN’s management and Board of Directors through various internal reports. Additionally, disclosure of these ratios provides a meaningful base for comparability to other financial institutions as these ratios have become an important measure of the capital strength of banks as demonstrated by the inclusion in the stress tests administered by the United States Treasury Department under the Capital Assistance Program. Refer to the reconciliation of non-GAAP to GAAP measures and presentation of the most comparable GAAP ratios on page 34 of this financial supplement.

2

FIRST HORIZON NATIONAL CORPORATION SEGMENT STRUCTURE

** In the second quarter, FHN reviewed cost allocation and funds transfer pricing methodologies used to determine segment performance. As a result of this review, certain of these methodologies were revised affecting all segments. Additionally, activities related to Low Income Housing Investments were moved from Regional Banking to Corporate. For comparability, previously reported amounts have been revised to reflect these changes.

Regional Banking

- Traditional banking services for consumers and business

- Activities include lending and deposit taking, investments, insurance, financial planning, trust services, asset management, cash management, and health savings accounts

- Primarily southeastern US footprint, with approximately 200 financial centers in Tennessee and nearby markets

- First Tennessee banking franchise and middle market lending are key businesses

Capital Markets

- Fixed income sales, trading, and strategies for institutional clients in U.S. and abroad

- Other capital markets products include:

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

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

National Specialty Lending

- Wind-down portfolio that includes lending activities such as consumer lending and construction lending outside Regional Banking footprint

- Construction lending includes national home builder, one-time close, and commercial real estate portfolios

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

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

Mortgage Banking

- Primarily consists of first lien mortgage originations in the Tennessee market and legacy servicing

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

Corporate

- Includes executive management, enterprise-wide risk management, corporate finance, corporate communications, low income housing activities and legal functions

- Also includes funding function for the corporation and any impact from balance sheet positioning

3

PERFORMANCE HIGHLIGHTS

Summary of Second Quarter 2009 Significant Items (in millions)

Segment	Item	Income Statement	Pre-Tax			Comments
National Specialty Lending	Repurchase Reserves	Noninterest income: Other	$	(12.0	)	Increase in consumer equity lending repurchase reserves due to higher estimated repurchase activity.
Mortgage Banking	Foreclosure/Repurchase Provision	Noninterest expense: Other	$	(29.1	)	Increase in losses related to legacy origination platform from mortgage foreclosure and repurchase activity.
	Reinsurance Reserve	Noninterest expense: Other	$	(8.1	)	Increase in PMI reinsurance liability due to increasing mortgage default expectations.
	Warehouse Valuation	Noninterest income: Mortgage Banking	~ $	(10	)	Mortgage warehouse valuation adjustment.
All Segments	FDIC Special Assessment	Noninterest expense: Other	$	(12.6	)	FDIC special assessment allocated to segments.
Various	OREO Fair Value Adjustments and Expenses	Noninterest expense: Other	$	(21.8	)	Primarily reflects depreciation in the fair value of OREO.

(Second Quarter 2009 vs. First Quarter 2009)

Asset Quality

- NPAs decreased $19.1 million to $1.2 billion, NPA ratio increased to 615 basis points from 598 basis points

- Reflects approximately $13 million reduction in OREO balances

- Ratio increase primarily reflects overall decrease in loans and slight decrease in NPAs

- Provision decreased to $260.0 million in the second quarter compared to $300.0 million in first quarter

- Overall portfolio deterioration moderated somewhat in second quarter 2009

- Consumer Portfolio

- Home equity required reserve levels relatively flat due to moderation in delinquency v. recent experience

- Tennessee delinquency remained flat

- National delinquency trends deteriorated somewhat

- Permanent mortgage reserves up as deterioration continued and severities increase

- OTC provisioning reflects recognition of higher inherent loss content, slight reserve decrease

- Commercial portfolio

- Delinquency trends moderated

- Residential CRE reserve amount stable as national portfolio winds down

- Income CRE and C&I reserves up as economic conditions continue to impact these portfolios

- Net charge-offs were 477 annualized basis points of average loans driven by income CRE, permanent mortgage, home equity, and OTC portfolios

- Net charge-offs of $239.4 million in second quarter compared to $208.3 million in prior quarter

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

- Allowance as a percentage of loans ratio increased to 491 basis points from 457 basis points in prior quarter

Capital

- Continued quarterly dividend payable in common stock

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

- 7.3% for tangible common equity to tangible assets

- 15.4% for Tier 1

- 20.6% for Total Capital

- 9.5% for Tier 1 Common

- CPP Preferred dividend of $14.8 million in second quarter

- $10.8 million effect of cash dividend

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

4

PERFORMANCE HIGHLIGHTS (continued)

(Second Quarter 2009 vs. First Quarter 2009)

Regional Banking

- Net interest margin increased to 4.71% compared to 4.50% in first quarter

- Reflects increase in commercial loan and deposit spreads and decrease in earning assets

- Noninterest income increased to $81.4 million from $76.3 million

- Seasonal increase in fee income, primarily from deposit accounts

- Provision expense decreased to $51.0 million from $97.8 million

- Improvement in Regional Banking home equity portfolio

- Increased reserves on C&I portfolio

- Noninterest expense was flat at $168.4 million compared to $168.2 million in prior quarter

- Personnel expense declined by $3.0 million

- First quarter affected by life insurance reserve adjustment

- Foreclosure losses increased $3.3 million

- Second quarter NIOE impacted by $5.0 million allocation of FDIC special assessment

Capital Markets

- Fixed income revenues were $170.1 million in second quarter compared to $197.0 million in prior quarter

- Other product revenues were $19.5 million in second quarter compared to $19.7 million in first quarter

- Provision expense increased to $21.1 million from $14.0 million

- Primarily reflects continued stress on trust preferred loan portfolios

- Noninterest expense decreased $37.6 million to $114.4 million

- Primarily due to a reduced rate of incentive provisioning and decreased production levels

- Second quarter NIOE impacted by $2.3 million allocation of FDIC special assessment

National Specialty Lending

- Period-end loans declined approximately $.5 billion

- Provision for loan losses of $176.3 million continues to reflect deterioration within national construction and consumer lending portfolios

- Noninterest income decreased sequentially to a loss of $9.1 million

- Charge of $12.0 million recognized in second quarter for repurchase reserves, $10.0 million recognized in first quarter

- Repurchase activity due to representations and warranties made on prior loan sales

- Noninterest expense increased to $41.0 million compared to $31.9 million in the first quarter

- Increase due to higher losses on foreclosed properties and $2.9 million allocation of FDIC special assessment

Mortgage Banking

- Noninterest other income declined to $19.2 million compared to $121.2 million in first quarter

- Decline in net servicing income of $85.0 million

- Positive hedging results were $7.0 million compared to $84.7million in the first quarter due to rate volatility and change in hedge profile

- Servicing fees declined consistent with the decline in average MSR

- Completed bulk MSR sale in second quarter of approximately $77.6 million

- Decreased origination income

- Negative warehouse valuation adjustments of approximately $10 million, adjustments minimal in first quarter

- Tennessee mortgage fundings increased in second quarter due to refinance activity

- Noninterest expense increased to $63.2 million in second quarter compared to $47.9 million in prior quarter

- Provisioning for foreclosure and repurchase losses related to legacy origination platform of $29.1 million in second quarter

- Increase of $16.8 million from first quarter

- Second quarter PMI reinsurance liability charges of $8.1 million, down from $14.3 million in the first quarter

- Reflects increased mortgage default expectations

- Provision expense increased to $11.5 million due to deterioration in permanent mortgage portfolio

Corporate Segment

- Minimal second quarter net charges related to restructuring, repositioning and efficiency initiatives

- Prior quarter included $4.7 million of net charges for these initiatives

- Noninterest expense includes $1.7 million allocation of FDIC special assessment

Taxes

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

5

CHARGES FOR RESTRUCTURING, REPOSITIONING, & EFFICIENCY INITIATIVES
Quarterly, Unaudited

By Income Statement Impact
(Thousands, rounded)	2Q09			1Q09			4Q08			3Q08			2Q08
Noninterest income
Mortgage banking	$	—		$	(1,100	)	$	—		$	(700	)	$	(9,300	)
Losses on divestitures		—			—			(100	)		(17,500	)		(400	)
Noninterest expense
Employee compensation, incentives, and benefits		700			2,700			600			10,700			5,700
Legal and professional fees		—			100			300			(100	)		1,100
Occupancy		(600	)		—			(200	)		3,900			3,400
Equipment rentals, depreciation, and maintenance		—			—			—			100			4,200
All other expense		200			800			9,500			1,100			1,900
Total loss before income taxes	$	(300	)	$	(4,700	)	$	(10,300	)	$	(33,900	)	$	(26,000	)

6

CONSOLIDATED SUMMARY RESULTS
Quarterly, Unaudited

																2Q09 Change vs.
(Thousands)	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08
Income Statement Highlights
Net interest income	$	199,086		$	196,587		$	204,948		$	223,147		$	238,895			1	%		(17	)%
Noninterest income		292,608			407,871			336,672			305,383			400,018			(28	)%		(27	)%
Securities gains/(losses), net		(330	)		(2	)		1,346			(210	)		(972	)		NM			66	%
Total revenue		491,364			604,456			542,966			528,320			637,941			(19	)%		(23	)%
Noninterest expense		411,932			417,328			345,449			399,399			462,999			(1	)%		(11	)%
Provision for loan losses		260,000			300,000			280,000			340,000			220,000			(13	)%		18	%
Loss before income taxes		(180,568	)		(112,872	)		(82,483	)		(211,079	)		(45,058	)		(60	)%		(301	)%
Benefit for income taxes		(74,538	)		(47,777	)		(30,988	)		(88,859	)		(28,821	)		(56	)%		(159	)%
Loss from continuing operations		(106,030	)		(65,095	)		(51,495	)		(122,220	)		(16,237	)		(63	)%		NM
Income from discontinued operations, net of tax		548			—			—			—			—			NM			NM
Net loss		(105,482	)		(65,095	)		(51,495	)		(122,220	)		(16,237	)		(62	)%		NM
Net income attributable to noncontrolling interest (a)		2,844			2,750			4,236			2,875			2,844			3	%		NM
Net loss attributable to controlling interest		(108,326	)		(67,845	)		(55,731	)		(125,095	)		(19,081	)		(60	)%		NM
Preferred stock dividends (b)		14,856			14,956			7,413			—			—			(1	)%		NM
Loss available to common shareholders	$	(123,182	)	$	(82,801	)	$	(63,144	)	$	(125,095	)	$	(19,081	)		(49	)%		NM
Common Stock Data
Diluted EPS from continuing operations (c)	$	(0.58	)	$	(0.39	)	$	(0.30	)	$	(0.59	)	$	(0.10	)		NM			NM
Diluted EPS (c)		(0.58	)		(0.39	)		(0.30	)		(0.59	)		(0.10	)		NM			NM
Diluted shares (c)		213,735			213,734			213,665			213,664			187,911			*			14	%
Period-end shares outstanding (c)		215,208			214,934			214,085			214,099			214,259			*			*
Dividends declared per share (d)		NM	(e)		NM	(f)		NM	(g)		NM	(h)	$	0.19	(i)		NM			NM
Balance Sheet Highlights (Period End)
Total loans, net of unearned income	$	19,585,827		$	20,572,477		$	21,278,190		$	21,601,898		$	22,225,232			(5	)%		(12	)%
Total deposits		14,977,461			14,910,055			14,241,814			13,778,235			15,093,947			*			(1	)%
Total deposits-divestiture		—			—			—			—			296,632			NM			NM
Total assets		28,758,943			31,208,024			31,021,980			32,804,376			35,549,961			(8	)%		(19	)%
Total assets-divestiture		—			—			—			—			395,628			NM			NM
Total liabilities		25,364,961			27,700,348			27,447,348			29,931,458			32,557,238			(8	)%		(22	)%
Total liabilities-divestiture		—			—			—			—			298,098			NM			NM
Total equity		3,393,982			3,507,676			3,574,632			2,872,918			2,992,723			(3	)%		13	%
Key Ratios & Other
Return on average assets		(1.46	)%		(0.87	)%		(0.66	)%		(1.46	)%		(0.18	)%
Return on average common equity		(20.96	)%		(13.44	)%		(9.30	)%		(18.30	)%		(3.02	)%
Net interest margin		3.05	%		2.89	%		2.96	%		3.01	%		3.01	%
Fee income to total revenue		60	%		67	%		62	%		58	%		63	%
Efficiency ratio		83.83	%		69.04	%		63.60	%		75.60	%		72.60	%
Book value per common share	$	10.73		$	11.29		$	11.66		$	12.04		$	12.59
Tangible book value per common share		9.64			10.19			10.55			10.92			11.46
Adjusted tangible common equity to risk weighted assets		8.64			8.61			8.80			8.78			8.45
FTE employees		5,971			6,033			6,095			6,195			9,386			(1	)%		(36	)%

NM — Not meaningful
*	Amount is less than one percent.
Certain previously reported amounts have been reclassified to agree with current presentation.
(a)	Represents preferred dividends previously reported in NIOE. Currently reported as noncontrolling interest due to adoption of SFAS 160.
(b)	2Q09 includes $4.0 million amortization of initial discounted book value of CPP preferred.
(c)	Shares restated for stock dividends distributed through July 1, 2009.
(d)	2Q08 dividend declared paid in cash.
(e)	Stock dividend rate of 1.5782% per share.
(f)	Stock dividend rate of 2.6673% per share.
(g)	Stock dividend rate of 1.837% per share.
(h)	Stock dividend rate of 3.0615% per share.
(i)	Cash dividends per share restated for stock dividends distributed through July 1, 2009.

7

CONSOLIDATED INCOME STATEMENT
Quarterly, Unaudited

																2Q09 Change vs.
(Thousands)	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08
Interest income	$	255,495		$	270,093		$	331,554		$	383,243		$	415,485			(5	)%		(39	)%
Less interest expense		56,409			73,506			126,606			160,096			176,590			(23	)%		(68	)%
Net interest income		199,086			196,587			204,948			223,147			238,895			1	%		(17	)%
Provision for loan losses		260,000			300,000			280,000			340,000			220,000			(13	)%		18	%
Net interest income/(loss) after provision for loan losses		(60,914	)		(103,413	)		(75,052	)		(116,853	)		18,895			41	%		(422	)%
Noninterest income:
Capital markets		187,478			214,224			174,671			95,954			122,338			(12	)%		53	%
Deposit transactions and cash management		41,815			39,032			43,882			45,802			46,797			7	%		(11	)%
Mortgage banking		15,483			115,749			80,087			106,817			172,418			(87	)%		(91	)%
Trust services and investment management		7,651			6,820			7,675			8,154			8,883			12	%		(14	)%
Insurance commissions		6,555			6,918			6,806			7,332			6,822			(5	)%		(4	)%
Revenue from loan sales and securitizations		552			969			(782	)		3,238			(6,984	)		(43	)%		108	%
Securities gains/(losses), net		(330	)		(2	)		1,346			(210	)		(972	)		NM			66	%
Gains/(losses) on divestitures		—			—			(106	)		(17,489	)		(429	)		NM			NM
Other (a)		33,074			24,159			24,439			55,575			50,173			37	%		(34	)%
Total noninterest income		292,278			407,869			338,018			305,173			399,046			(28	)%		(27	)%
Adjusted gross income after provision for loan losses		231,364			304,456			262,966			188,320			417,941			(24	)%		(45	)%
Noninterest expense:
Employee compensation, incentives and benefits (b)		199,650			248,511			180,871			215,498			277,078			(20	)%		(28	)%
Occupancy (b)		15,863			16,050			19,149			27,210			30,018			(1	)%		(47	)%
Operations services		17,930			16,539			19,345			20,041			19,124			8	%		(6	)%
Equipment rentals, depreciation and maintenance		8,338			8,698			11,454			12,336			18,268			(4	)%		(54	)%
Legal and professional fees		14,919			14,108			17,711			16,955			14,030			6	%		6	%
Communications and courier		7,171			7,204			7,754			9,628			11,477			*			(38	)%
Amortization of intangible assets		1,509			1,636			1,805			1,802			2,182			(8	)%		(31	)%
Other (b) (c) (d) (e)		146,552			104,582			87,360			95,929			90,822			40	%		61	%
Total noninterest expense		411,932			417,328			345,449			399,399			462,999			(1	)%		(11	)%
Loss before income taxes		(180,568	)		(112,872	)		(82,483	)		(211,079	)		(45,058	)		(60	)%		(301	)%
Benefit for income taxes		(74,538	)		(47,777	)		(30,988	)		(88,859	)		(28,821	)		(56	)%		(159	)%
Loss from continuing operations	$	(106,030	)	$	(65,095	)	$	(51,495	)	$	(122,220	)	$	(16,237	)		(63	)%		NM
Income from discontinued operations, net of tax		548			—			—			—			—			NM			NM
Net loss	$	(105,482	)	$	(65,095	)	$	(51,495	)	$	(122,220	)	$	(16,237	)		(62	)%		NM
Net income attributable to noncontrolling interest (f)		2,844			2,750			4,236			2,875			2,844			3	%		*
Net loss attributable to controlling interest	$	(108,326	)	$	(67,845	)	$	(55,731	)	$	(125,095	)	$	(19,081	)		(60	)%		NM
Preferred stock dividends (g)		14,856			14,956			7,413			—			—			(1	)%		NM
Net loss available to common shareholders	$	(123,182	)	$	(82,801	)	$	(63,144	)	$	(125,095	)	$	(19,081	)		(49	)%		NM

NM — Not meaningful
*	Amount is less than one percent.
Certain previously reported amounts have been reclassified to agree with current presentation.
2Q09 Key Impacts
(a)	Includes charges of $12.0 million related to consumer loan repurchases.
(b)	Includes a portion of net charges for $.3 million, see Restructuring, Repositioning & Efficiency Initiatives page for further details.
(c)	Includes $8.1 million increase in reinsurance reserves for PMI contracts.
(d)	Includes $29.1 million increase in Mortgage Banking related repurchase reserves.
(e)	Includes a $12.6 million FDIC special assessment.
(f)	Represents preferred dividends previously reported in NIOE. Currently reported as noncontrolling interest due to adoption of SFAS 160.
(g)	Includes $4.0 million amortization of initial discounted book value of CPP preferred.

8

OTHER INCOME AND OTHER EXPENSE
Quarterly, Unaudited

																2Q09 Change vs.
(Thousands)	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08
Other Income
Brokerage management fees and commissions	$	6,469		$	6,632		$	7,307		$	7,824		$	8,690			(2	)%		(26	)%
Bankcard income		5,076			4,896			5,226			5,587			5,728			4	%		(11	)%
Deferred compensation		4,957			(2,743	)		(12,531	)		(5,145	)		1,325			281	%		274	%
Bank owned life insurance		4,295			4,131			5,107			6,731			6,343			4	%		(32	)%
Remittance processing		3,374			3,143			3,160			3,314			3,206			7	%		5	%
Other service charges		3,030			3,521			3,002			3,043			3,189			(14	)%		(5	)%
Reinsurance fees		2,788			2,796			2,624			2,830			3,320			*			(16	)%
ATM interchange fees		2,729			2,205			2,485			2,263			2,238			24	%		22	%
Electronic banking fees		1,518			1,609			1,492			1,535			1,572			(6	)%		(3	)%
Letter of credit		1,368			1,360			1,322			1,603			1,274			1	%		7	%
Gain on repurchase of debt		—			60			2,331			18,919			12,596		NM			NM
Consumer loan repurchases (a)		(11,982	)		(9,950	)		(2,389	)		(1,660	)		(9,484	)		(20	)%		(26	)%
Other		9,452			6,499			5,303			8,731			10,176			45	%		(7	)%
Total	$	33,074		$	24,159		$	24,439		$	55,575		$	50,173			37	%		(34	)%
Other Expense
Mortgage banking foreclosure and repurchase provision		29,099			12,267			2,752			849			5,535			137	%		426	%
Foreclosed real estate		21,798			10,033			8,189			4,130			5,185			117	%		320	%
Deposit insurance premium (b)		21,353			7,628			4,288			4,146			3,403			180	%	NM
Contract employment (c)		8,966			10,161			11,569			9,033			7,359			(12	)%		22	%
Loan closing costs		7,414			5,139			3,129			10,314			11,718			44	%		(37	)%
Computer software		6,484			6,896			7,151			7,162			8,120			(6	)%		(20	)%
Low income housing expense		5,509			5,125			4,289			5,064			4,815			8	%		14	%
Advertising and public relations		5,293			5,820			7,366			9,142			7,179			(9	)%		(26	)%
Other insurance and taxes		3,251			2,928			2,850			1,394			2,381			11	%		37	%
Travel and entertainment		3,149			2,679			3,314			3,358			5,672			18	%		(44	)%
Loan insurance expense		2,057			1,912			1,482			1,477			1,198			8	%		72	%
Customer relations		1,960			2,288			1,897			2,727			2,544			(14	)%		(23	)%
Supplies (c)		1,554			304			2,053			2,725			2,942			411	%		(47	)%
Employee training and dues		1,545			1,439			1,771			1,485			1,632			7	%		(5	)%
Fed services fees		1,360			1,367			1,526			1,975			1,941			(1	)%		(30	)%
Bank examination costs		1,248			1,248			514			1,523			1,054			*			18	%
Other (c) (d)		24,512			27,348			23,220			29,425			18,144			(10	)%		35	%
Total	$	146,552		$	104,582		$	87,360		$	95,929		$	90,822			40	%		61	%

NM	— Not meaningful
*	Amount is less than one percent.
Certain previously reported amounts have been reclassified to agree with current presentation.
2Q09 Key Impacts
(a)	Includes increase in reserves for estimate to repurchase HELOCs and second liens from prior loans sales.
(b)	Includes a $12.6 million FDIC special assessment.
(c)	Includes a portion of net charges for $.3 million, see Restructuring, Repositioning & Efficiency Initiatives page for further details.
(d)	Includes $8.1 million increase in reinsurance reserves for PMI contracts.

9

CONSOLIDATED PERIOD-END BALANCE SHEET
Quarterly, Unaudited

																2Q09 Change vs.
(Thousands)	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08
Assets
Investment securities	$	2,821,079		$	3,016,013		$	3,125,153		$	2,840,739		$	2,896,928			(6	)%		(3	)%
Loans held for sale		481,284			643,518			566,654			718,029			2,554,030			(25	)%		(81	)%
Loans, net of unearned income		19,585,827			20,572,477			21,278,190			21,601,898			22,225,232			(5	)%		(12	)%
Federal funds sold and securities purchased under agreements to resell		531,638			515,858			772,357			921,295			1,166,982			3	%		(54	)%
Interest bearing cash (a)		672,553			1,174,442			207,792			37,546			39,829			(43	)%	NM
Trading securities		1,117,212			933,316			945,766			1,561,024			1,473,815			20	%		(24	)%
Trading securities-divestiture (b)		—			—			—			—			89,239		NM			NM
Total earning assets		25,209,593			26,855,624			26,895,912			27,680,531			30,446,055			(6	)%		(17	)%
Cash and due from banks		419,696			438,181			552,423			815,935			838,376			(4	)%		(50	)%
Capital markets receivables		959,514			1,502,033			1,178,932			1,651,547			994,571			(36	)%		(4	)%
Mortgage servicing rights, net		337,096			381,024			376,844			798,491			903,634			(12	)%		(63	)%
Mortgage servicing rights, net-divestiture (b)		—			—			—			—			235,761		NM			NM
Goodwill		192,408			192,408			192,408			192,408			192,408			*			*
Other intangible assets, net		41,937			43,446			45,081			46,887			48,615			(3	)%		(14	)%
Premises and equipment, net		325,666			330,299			333,931			336,078			344,410			(1	)%		(5	)%
Real estate acquired by foreclosure (c)		116,584			132,653			125,538			151,461			141,857			(12	)%		(18	)%
Allowance for loan losses		(961,482	)		(940,932	)		(849,210	)		(760,456	)		(575,149	)		(2	)%		(67	)%
Other assets		2,117,931			2,273,288			2,170,121			1,891,494			1,908,795			(7	)%		11	%
Other assets-divestiture (b)		—			—			—			—			70,628		NM			NM
Total assets	$	28,758,943		$	31,208,024		$	31,021,980		$	32,804,376		$	35,549,961			(8	)%		(19	)%
Liabilities and Equity
Deposits
Savings	$	4,593,215		$	4,396,213		$	4,824,939		$	4,350,832		$	4,041,352			4	%		14	%
Other interest-bearing deposits		2,110,787			1,868,902			1,783,362			1,638,731			1,880,678			13	%		12	%
Time deposits		2,149,812			2,152,837			2,294,644			2,510,344			2,468,521			*			(13	)%
Total interest-bearing core deposits		8,853,814			8,417,952			8,902,945			8,499,907			8,390,551			5	%		6	%
Noninterest-bearing deposits		4,689,639			4,908,175			3,956,633			3,808,239			4,453,332			(4	)%		5	%
Noninterest-bearing deposits-divestiture (b)		—			—			—			—			296,632		NM			NM
Total core deposits		13,543,453			13,326,127			12,859,578			12,308,146			13,140,515			2	%		3	%
Certificates of deposit $100,000 and more		1,434,008			1,583,928			1,382,236			1,470,089			1,953,432			(9	)%		(27	)%
Total deposits		14,977,461			14,910,055			14,241,814			13,778,235			15,093,947			*			(1	)%
Federal funds purchased and securities sold under agreements to repurchase		2,404,985			2,264,077			1,751,079			1,890,681			2,620,014			6	%		(8	)%
Trading liabilities		286,282			288,029			359,502			380,896			464,225			(1	)%		(38	)%
Other short term borrowings and commercial paper (d)		2,555,704			3,827,278			4,279,689			6,149,073			5,998,810			(33	)%		(57	)%
Term borrowings		2,511,674			3,353,464			4,022,297			4,545,791			5,783,407			(25	)%		(57	)%
Other collateralized borrowings		723,677			736,172			745,363			749,797			767,010			(2	)%		(6	)%
Total long-term debt		3,235,351			4,089,636			4,767,660			5,295,588			6,550,417			(21	)%		(51	)%
Capital markets payables		965,442			1,383,447			1,115,428			1,645,118			868,883			(30	)%		11	%
Other liabilities		939,736			937,826			932,176			791,867			959,476			*			(2	)%
Other liabilities-divestiture (b)		—			—			—			—			1,466		NM			NM
Total liabilities		25,364,961			27,700,348			27,447,348			29,931,458			32,557,238			(8	)%		(22	)%
Equity
Common stock		134,505			132,247			128,302			125,996			122,345			2	%		10	%
Capital surplus		1,128,286			1,087,252			1,048,602			1,016,498			980,428			4	%		15	%
Capital surplus common stock warrant — (CPP)		83,860			83,860			83,860			—			—		NM			NM
Undivided profits		1,100,462			1,265,073			1,387,854			1,483,184			1,646,272			(13	)%		(33	)%
Accumulated other comprehensive loss, net		(138,892	)		(142,503	)		(151,831	)		(48,037	)		(51,599	)		3	%		(169	)%
Preferred stock capital surplus — (CPP)		790,596			786,582			782,680			—			—			1	%	NM
Noncontrolling interest		295,165			295,165			295,165			295,277			295,277			*			*
Total equity		3,393,982			3,507,676			3,574,632			2,872,918			2,992,723			(3	)%		13	%
Total liabilities and equity	$	28,758,943		$	31,208,024		$	31,021,980		$	32,804,376		$	35,549,961			(8	)%		(19	)%

NM — Not meaningful
*	Amount is less than one percent.
Certain previously reported amounts have been reclassified to agree with current presentation.
(a)	Includes excess balances held at Fed.
(b)	Associated with the sale of certain mortgage banking operations.
(c)	2Q09 includes $10.5 million of foreclosed assets related to government insured mortgages.
(d)	2Q09 includes $2.4 billion of FRB Term Auction Facility borrowings.

10

CONSOLIDATED AVERAGE AND PERIOD-END LOANS
Quarterly, Unaudited

											2Q09 Change vs.
(Thousands)	2Q09		1Q09		4Q08		3Q08		2Q08		1Q09			2Q08
Average Loans (Net)
Commercial
Commercial, financial and industrial	$	7,506,773	$	7,781,708	$	7,516,557	$	7,530,724	$	7,212,907		(4	)%		4	%
Real estate commercial (a)		1,542,081		1,492,906		1,479,582		1,497,773		1,401,267		3	%		10	%
Real estate construction (b)		1,455,626		1,689,863		1,917,647		2,162,817		2,481,680		(14	)%		(41	)%
Total commercial loans		10,504,480		10,964,477		10,913,786		11,191,314		11,095,854		(4	)%		(5	)%
Retail
Real estate residential (c)		7,907,748		8,095,128		8,172,174		8,166,295		7,878,845		(2	)%		*
Real estate construction (d)		672,011		880,537		1,087,752		1,350,092		1,666,007		(24	)%		(60	)%
Other retail		131,271		135,537		137,185		138,848		138,242		(3	)%		(5	)%
Credit card receivables		184,159		184,244		190,189		193,517		193,850		*			(5	)%
Real estate loans pledged against other collateralized borrowings (e)		693,643		709,144		716,925		721,760		735,828		(2	)%		(6	)%
Total retail loans		9,588,832		10,004,590		10,304,225		10,570,512		10,612,772		(4	)%		(10	)%
Total loans, net of unearned income	$	20,093,312	$	20,969,067	$	21,218,011	$	21,761,826	$	21,708,626		(4	)%		(7	)%
Period-End Loans (Net)
Commercial
Commercial, financial and industrial	$	7,400,396	$	7,716,733	$	7,863,727	$	7,642,684	$	7,717,110		(4	)%		(4	)%
Real estate commercial (a)		1,506,911		1,501,964		1,454,040		1,492,323		1,463,726		*			3	%
Real estate construction (b)		1,337,330		1,550,158		1,778,140		2,020,455		2,271,533		(14	)%		(41	)%
Total commercial loans		10,244,637		10,768,855		11,095,907		11,155,462		11,452,369		(5	)%		(11	)%
Retail
Real estate residential (c)		7,785,906		8,016,018		8,161,435		8,192,926		8,196,622		(3	)%		(5	)%
Real estate construction (d)		557,822		772,982		980,798		1,201,911		1,513,845		(28	)%		(63	)%
Other retail		129,848		132,452		135,779		139,441		138,970		(2	)%		(7	)%
Credit card receivables		186,376		180,282		189,554		194,966		195,703		3	%		(5	)%
Real estate loans pledged against other collateralized borrowings (e)		681,238		701,888		714,717		717,192		727,723		(3	)%		(6	)%
Total retail loans		9,341,190		9,803,622		10,182,283		10,446,436		10,772,863		(5	)%		(13	)%
Total loans, net of unearned income	$	19,585,827	$	20,572,477	$	21,278,190	$	21,601,898	$	22,225,232		(5	)%		(12	)%

*	Amount is less than one percent.
Certain previously reported amounts have been reclassified to agree with current presentation.
(a)	Includes nonconstruction income property loans.
(b)	Includes home builder, condominium, and income property construction loans.
(c)	Includes home equity loans, home equity lines of credit and permanent mortgages.
(d)	Includes one-time close product.
(e)	Includes on balance sheet securitizations of home equity loans.

11

CONSOLIDATED AVERAGE BALANCE SHEET
Quarterly, Unaudited

																2Q09 Change vs.
(Thousands)	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08
Assets:
Earning assets:
Loans, net of unearned income (a)	$	20,093,312		$	20,969,067		$	21,218,011		$	21,761,826		$	21,708,626			(4	)%		(7	)%
Loans held for sale		622,799			626,679			650,844			1,950,831			3,606,621			(1	)%		(83	)%
Loans held for sale-divestiture (b)		—			—			—			—			195,175		NM			NM
Investment securities:
U.S. Treasuries		48,676			48,593			48,415			47,843			47,123			*			3	%
U.S. government agencies		2,522,800			2,685,774			2,576,587			2,524,895			2,649,651			(6	)%		(5	)%
States and municipalities		53,965			63,425			75,084			31,682			31,347			(15	)%		72	%
Other		308,690			292,151			282,639			268,939			257,907			6	%		20	%
Total investment securities		2,934,131			3,089,943			2,982,725			2,873,359			2,986,028			(5	)%		(2	)%
Capital markets securities inventory		965,581			1,117,165			1,135,270			1,355,501			1,630,501			(14	)%		(41	)%
Mortgage banking trading securities		139,584			171,978			242,930			304,278			387,469			(19	)%		(64	)%
Mortgage banking trading securities-divestiture (b)		—			—			—			62,131			981		NM			NM
Other earning assets:
Federal funds sold and securities purchased under agreements to resell		652,978			806,704			911,387			1,213,510			1,275,548			(19	)%		(49	)%
Interest bearing cash (c)		766,842			656,841			546,732			39,666			36,573			17	%	NM
Total other earning assets		1,419,820			1,463,545			1,458,119			1,253,176			1,312,121			(3	)%		8	%
Total earning assets		26,175,227			27,438,377			27,687,899			29,561,102			31,827,522			(5	)%		(18	)%
Allowance for loan losses		(1,008,254	)		(889,630	)		(741,076	)		(619,977	)		(529,124	)		(13	)%		(91	)%
Cash and due from banks		446,322			482,260			495,500			638,467			697,013			(7	)%		(36	)%
Capital markets receivables		245,646			269,417			432,614			196,285			251,667			(9	)%		(2	)%
Premises and equipment, net		326,482			332,241			334,642			339,575			373,403			(2	)%		(13	)%
Other assets		2,744,120			2,834,546			2,839,665			3,219,952			3,517,017			(3	)%		(22	)%
Other assets-divestiture (b)		—			—			—			46,091			8,603		NM			NM
Total assets	$	28,929,543		$	30,467,211		$	31,049,244		$	33,381,495		$	36,146,101			(5	)%		(20	)%
Liabilities and equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Interest bearing deposits-divestiture (b)	$	—		$	—		$	—		$	—		$	30,695		NM			NM
Other interest-bearing deposits		1,842,780			1,792,241			1,615,764			1,724,504			1,911,341			3	%		(4	)%
Savings		4,259,822			4,629,345			4,741,073			4,002,907			4,180,739			(8	)%		2	%
Time deposits		2,125,493			2,216,411			2,461,921			2,422,189			2,530,300			(4	)%		(16	)%
Total interest-bearing core deposits		8,228,095			8,637,997			8,818,758			8,149,600			8,653,075			(5	)%		(5	)%
Certificates of deposit $100,000 and more		1,520,681			1,507,482			1,491,297			1,839,651			2,022,972			1	%		(25	)%
Certificates of deposit $100,000 and more-divestiture (b)		—			—			—			—			279		NM			NM
Federal funds purchased and securities sold under agreements to repurchase		2,510,423			2,266,424			2,021,033			2,593,485			3,810,955			11	%		(34	)%
Federal funds purchased and securities sold under agreements to repurchase-divestiture (b)		—			—			—			—			3,102		NM			NM
Capital markets trading liabilities		492,706			575,446			488,102			708,875			768,565			(14	)%		(36	)%
Other short-term borrowings and commercial paper (d)		3,403,174			4,212,480			5,096,108			6,083,691			5,513,454			(19	)%		(38	)%
Long term debt:
Term borrowings		2,952,438			3,534,657			4,266,510			5,193,319			5,886,694			(16	)%		(50	)%
Other collateralized borrowings		731,324			742,491			747,824			756,999			792,388			(2	)%		(8	)%
Total long-term debt		3,683,762			4,277,148			5,014,334			5,950,318			6,679,082			(14	)%		(45	)%
Total interest-bearing liabilities		19,838,841			21,476,977			22,929,632			25,325,620			27,451,484			(8	)%		(28	)%
Noninterest-bearing deposits		4,616,789			4,388,807			3,652,161			4,031,157			4,619,333			5	%		*
Other noninterest-bearing deposits-divestiture (b)		—			—			—			3,038			8,902		NM			NM
Capital markets payables		175,848			198,358			374,368			178,289			232,282			(11	)%		(24	)%
Other liabilities		856,678			823,929			692,759			827,244			995,931			4	%		(14	)%
Other liabilities-divestiture (b)		—			—			—			1,397			1,022		NM			NM
Equity		3,441,387			3,579,140			3,400,324			3,014,750			2,837,147			(4	)%		21	%
Total liabilities and equity	$	28,929,543		$	30,467,211		$	31,049,244		$	33,381,495		$	36,146,101			(5	)%		(20	)%

NM — Not meaningful
*	Amount is less than one percent.
Certain previously reported amounts have been reclassified to agree with current presentation.
(a)	Includes loans on nonaccrual status.
(b)	Associated with the sale of certain mortgage banking operations.
(c)	Includes excess balances held at Fed.
(d)	In 2Q09, FRB Term Auction Facility borrowings averaged $2.9 billion and FHLB borrowings averaged $.3 billion.

12

CONSOLIDATED AVERAGE BALANCE SHEET: INCOME & EXPENSE
Quarterly, Unaudited

																2Q09 Change vs.
(Thousands)	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08
Assets:
Earning assets:
Loans, net of unearned income (a)	$	197,779		$	205,825		$	254,946		$	281,777		$	285,539			(4	)%		(31	)%
Loans held for sale		6,577			7,732			9,821			29,078			54,217			(15	)%		(88	)%
Investment securities:
U.S. Treasuries		229			223			233			250			249			3	%		(8	)%
U.S. government agencies		33,567			37,331			36,565			34,886			36,573			(10	)%		(8	)%
States and municipalities		390			371			944			372			324			5	%		20	%
Other		2,363			2,258			6,080			3,336			2,159			5	%		9	%
Total investment securities		36,549			40,183			43,822			38,844			39,305			(9	)%		(7	)%
Capital markets securities inventory		9,588			10,198			12,790			15,898			18,131			(6	)%		(47	)%
Mortgage banking trading securities		4,525			5,500			8,253			11,781			12,120			(18	)%		(63	)%
Other earning assets:
Federal funds sold and securities purchased under agreements to resell		242			505			1,493			5,944			6,266			(52	)%		(96	)%
Interest bearing cash		461			360			850			253			189			28	%		144	%
Total other earning assets		703			865			2,343			6,197			6,455			(19	)%		(89	)%
Total earning assets/interest income	$	255,721		$	270,303		$	331,975		$	383,575		$	415,767			(5	)%		(38	)%
Liabilities:
Interest-bearing liabilities:
Interest-bearing deposits:
Other interest-bearing deposits	$	896		$	1,068		$	1,552		$	2,849		$	3,556			(16	)%		(75	)%
Savings		8,864			15,404			18,666			17,005			18,362			(42	)%		(52	)%
Time deposits		16,270			18,243			21,739			22,443			25,540			(11	)%		(36	)%
Total interest-bearing core deposits		26,030			34,715			41,957			42,297			47,458			(25	)%		(45	)%
Certificates of deposit $100,000 and more		7,967			9,459			12,680			15,184			17,361			(16	)%		(54	)%
Federal funds purchased and securities sold under agreements to repurchase		1,295			1,169			2,738			10,696			17,834			11	%		(93	)%
Capital markets trading liabilities		5,265			5,468			5,876			8,304			9,400			(4	)%		(44	)%
Other short-term borrowings and commercial paper		2,241			3,094			20,164			36,496			31,591			(28	)%		(93	)%
Long term debt:
Term borrowings		12,235			18,085			38,062			41,598			47,129			(32	)%		(74	)%
Other collateralized borrowings		1,377			1,515			5,129			5,521			5,817			(9	)%		(76	)%
Total long-term debt		13,612			19,600			43,191			47,119			52,946			(31	)%		(74	)%
Total interest-bearing liabilities/interest expense	$	56,410		$	73,505		$	126,606		$	160,096		$	176,590			(23	)%		(68	)%
Net interest income-tax equivalent basis	$	199,311		$	196,798		$	205,369		$	223,479		$	239,177			1	%		(17	)%
Fully taxable equivalent adjustment		(225	)		(211	)		(421	)		(332	)		(282	)		7	%		(20	)%
Net interest income	$	199,086		$	196,587		$	204,948		$	223,147		$	238,895			1	%		(17	)%

NM — Not meaningful

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

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

(a)  Includes loans on nonaccrual status.

13

CONSOLIDATED AVERAGE BALANCE SHEET: YIELDS & RATES
Quarterly, Unaudited

(Thousands)	2Q09			1Q09			4Q08			3Q08			2Q08
Assets:
Earning assets:
Loans, net of unearned income (a)		3.95	%		3.97	%		4.78	%		5.16	%		5.29	%
Loans held for sale		4.22			4.94			6.04			5.96			5.70
Investment securities:
U.S. Treasuries		1.89			1.86			1.92			2.08			2.13
U.S. government agencies		5.32			5.56			5.68			5.53			5.52
States and municipalities		2.89			2.34			5.03			4.70			4.14
Other		3.06			3.09			8.60			4.96			3.35
Total investment securities		4.98			5.20			5.88			5.41			5.27
Capital markets securities inventory		3.97			3.65			4.51			4.69			4.45
Mortgage banking trading securities		12.97			12.79			13.59			12.86			12.48
Other earning assets:
Federal funds sold and securities purchased under agreements to resell		.15			.25			.65			1.95			1.98
Interest bearing cash		.24			.22			.62			2.54			2.08
Total other earning assets		.20			.24			.64			1.97			1.98
Total earning assets/interest income		3.91	%		3.98	%		4.78	%		5.17	%		5.24	%
Liabilities:
Interest-bearing liabilities:
Interest-bearing deposits:
Other interest-bearing deposits		.20	%		.24	%		.38	%		.66	%		.74	%
Savings		.83			1.35			1.57			1.69			1.76
Time deposits		3.07			3.34			3.51			3.69			4.06
Total interest-bearing core deposits		1.27			1.63			1.89			2.06			2.21
Certificates of deposit $100,000 and more		2.10			2.54			3.38			3.28			3.45
Federal funds purchased and securities sold under agreements to repurchase		.21			.21			.54			1.64			1.88
Capital markets trading liabilities		4.29			3.85			4.79			4.66			4.92
Other short-term borrowings and commercial paper		.26			.30			1.57			2.39			2.30
Long term debt:
Term borrowings		1.66			2.05			3.57			3.21			3.20
Other collateralized borrowings		.75			.82			2.74			2.92			2.94
Total long-term debt		1.48			1.83			3.45			3.17			3.17
Total interest-bearing liabilities/interest expense		1.14	%		1.38	%		2.20	%		2.52	%		2.58	%
Net interest spread		2.77	%		2.60	%		2.58	%		2.65	%		2.66	%
Effect of interest-free sources used to fund earning assets		.28			.29			.38			.36			.35
Net interest margin		3.05	%		2.89	%		2.96	%		3.01	%		3.01	%

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

Yields are adjusted to a fully taxable equivalent.

Earning assets yields are expressed net of unearned income.

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

Net interest margin is computed using total net interest income.

(a)  Includes loans on nonaccrual status.

14

MORTGAGE SERVICING RIGHTS
Quarterly, Unaudited

																2Q09 Change vs.
(Thousands)	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08
First Liens
Fair value beginning balance	$	361,343		$	354,394		$	770,635		$	1,111,204		$	865,855			2	%		(58	)%
Addition of mortgage servicing rights		—			189			1,073			61,501			100,305
Reductions due to loan payments		(18,513	)		(17,480	)		(10,771	)		(22,179	)		(38,598	)
Reductions due to sale		(77,591	)		—			(52,006	)		(317,640	)		(72,271	)
Changes in fair value due to:
Changes in valuation model inputs or assumptions (a)		52,590			26,740			(354,558	)		(63,061	)		255,890
Other changes in fair value		1,108			(2,500	)		21			810			23
Fair value ending balance	$	318,937		$	361,343		$	354,394		$	770,635		$	1,111,204			(12	)%		(71	)%
Second Liens
Fair value beginning balance	$	11,029		$	13,558		$	17,513		$	18,138		$	20,126			(19	)%		(45	)%
Addition of mortgage servicing rights		—			—			—			—			—
Reductions due to loan payments		(1,136	)		(2,524	)		(1,517	)		(614	)		(1,737	)
Changes in fair value due to:
Changes in valuation model inputs or assumptions (a)		6			(5	)		(2,438	)		(14	)		(254	)
Other changes in fair value		108			—			—			3			3
Fair value ending balance	$	10,007		$	11,029		$	13,558		$	17,513		$	18,138			(9	)%		(45	)%
HELOC
Fair value beginning balance	$	8,652		$	8,892		$	10,343		$	10,053		$	9,942			(3	)%		(13	)%
Addition of mortgage servicing rights		—			11			43			43			215
Reductions due to loan payments		(776	)		(419	)		(432	)		(483	)		(491	)
Changes in fair value due to:
Changes in valuation model inputs or assumptions (a)		—			—			(1,401	)		—			(230	)
Other changes in fair value		276			168			339			730			617
Fair value ending balance	$	8,152		$	8,652		$	8,892		$	10,343		$	10,053			(6	)%		(19	)%
Total Consolidated
Fair value beginning balance	$	381,024		$	376,844		$	798,491		$	1,139,395		$	895,923			1	%		(57	)%
Addition of mortgage servicing rights		—			200			1,116			61,544			100,520
Reductions due to loan payments		(20,425	)		(20,423	)		(12,720	)		(23,276	)		(40,826	)
Reductions due to sale		(77,591	)		—			(52,006	)		(317,640	)		(72,271	)
Changes in fair value due to:
Changes in valuation model inputs or assumptions (a)		52,596			26,735			(358,397	)		(63,075	)		255,406
Other changes in fair value		1,492			(2,332	)		360			1,543			643
Fair value ending balance	$	337,096		$	381,024		$	376,844		$	798,491		$	1,139,395			(12	)%		(70	)%

Certain previously reported amounts have been reclassified to agree with current presentation.
(a)	Principally reflects changes in discount rates and prepayment speed assumptions, mostly due to changes in interest rates.

15

BUSINESS SEGMENT HIGHLIGHTS
Quarterly, Unaudited

																2Q09 Change vs.
(Thousands)	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08
Regional Banking
Total revenues (a)	$	206,846		$	199,316		$	210,118		$	216,203		$	218,422			4	%		(5	)%
Provision for loan losses		51,025			97,826			105,825			58,200			89,477			(48	)%		(43	)%
Noninterest expenses		168,424			168,239			163,048			153,925			146,328			*			15	%
Income/(loss) before income taxes		(12,603	)		(66,749	)		(58,755	)		4,078			(17,383	)		81	%		27	%
Provision/(benefit) for income taxes		(4,810	)		(25,208	)		(22,233	)		1,452			(6,625	)		81	%		27	%
Net income/(loss) from continuing operations		(7,793	)		(41,541	)		(36,522	)		2,626			(10,758	)		81	%		28	%
Income from discontinued operations, net of tax		548			—			—			—			—			NM			NM
Net income/(loss)	$	(7,245	)	$	(41,541	)	$	(36,522	)	$	2,626		$	(10,758	)		83	%		33	%
National Specialty Lending
Total revenues (a)	$	22,107		$	26,843		$	36,261		$	49,319		$	38,862			(18	)%		(43	)%
Provision for loan losses		176,348			188,573			144,049			240,471			108,000			(6	)%		63	%
Noninterest expenses		41,019			31,883			24,886			26,044			29,026			29	%		41	%
Loss before income taxes		(195,260	)		(193,613	)		(132,674	)		(217,196	)		(98,164	)		(1	)%		(99	)%
Benefit for income taxes		(73,573	)		(72,954	)		(49,992	)		(81,839	)		(36,988	)		(1	)%		(99	)%
Net loss	$	(121,687	)	$	(120,659	)	$	(82,682	)	$	(135,357	)	$	(61,176	)		(1	)%		(99	)%
Mortgage Banking
Total revenues (a)	$	30,025		$	132,203		$	95,824		$	137,746		$	222,433			(77	)%		(87	)%
Provision/(benefit) for loan losses		11,523			(408	)		22,018			2,878			4,001			NM			188	%
Noninterest expenses		63,179			47,857			39,664			90,486			150,201			32	%		(58	)%
Income/(loss) before income taxes		(44,677	)		84,754			34,142			44,382			68,231			(153	)%		(165	)%
Provision/(benefit) for income taxes		(16,835	)		31,936			12,865			16,723			25,710			(153	)%		(165	)%
Net income/(loss)	$	(27,842	)	$	52,818		$	21,277		$	27,659		$	42,521			(153	)%		(165	)%
Capital Markets
Total revenues (a)	$	214,505		$	240,719		$	197,923		$	118,118		$	143,683			(11	)%		49	%
Provision for loan losses		21,104			14,009			8,108			38,451			18,522			51	%		14	%
Noninterest expenses		114,423			151,961			115,427			87,715			100,802			(25	)%		14	%
Income/(loss) before income taxes		78,978			74,749			74,388			(8,048	)		24,359			6	%		224	%
Provision/(benefit) for income taxes		29,687			28,096			27,903			(3,168	)		9,069			6	%		227	%
Net income/(loss)	$	49,291		$	46,653		$	46,485		$	(4,880	)	$	15,290			6	%		222	%
Corporate
Total revenues (a)	$	17,881		$	5,375		$	2,840		$	6,934		$	14,541			233	%		23	%
Noninterest expenses		24,887			17,388			2,423			41,228			36,643			43	%		(32	)%
Income/(loss) before income taxes		(7,006	)		(12,013	)		417			(34,294	)		(22,102	)		42	%		68	%
Provision/(benefit) for income taxes		(9,007	)		(9,647	)		470			(22,027	)		(19,987	)		7	%		55	%
Net income/(loss)	$	2,001		$	(2,366	)	$	(53	)	$	(12,267	)	$	(2,115	)		185	%		195	%
Total Consolidated
Total revenues (a)	$	491,364		$	604,456		$	542,966		$	528,320		$	637,941			(19	)%		(23	)%
Provision for loan losses		260,000			300,000			280,000			340,000			220,000			(13	)%		18	%
Noninterest expenses		411,932			417,328			345,448			399,398			463,000			(1	)%		(11	)%
Loss before income taxes		(180,568	)		(112,872	)		(82,482	)		(211,078	)		(45,059	)		(60	)%		(301	)%
Benefit for income taxes		(74,538	)		(47,777	)		(30,987	)		(88,859	)		(28,821	)		(56	)%		(159	)%
Net loss from continuing operations		(106,030	)		(65,095	)		(51,495	)		(122,219	)		(16,238	)		(63	)%		NM
Income from discontinued operations, net of tax		548			—			—			—			—			NM			NM
Net loss	$	(105,482	)	$	(65,095	)	$	(51,495	)	$	(122,219	)	$	(16,238	)		(62	)%		NM

NM — Not meaningful
*	Amount is less than one percent.
Certain previously reported amounts have been reclassified to agree with current presentation.
(a)	Includes noninterest income and net interest income.

16

REGIONAL BANKING
Quarterly, Unaudited

																2Q09 Change vs.
(Thousands)	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08
Income Statement
Net interest income	$	125,470		$	123,000		$	127,398		$	128,171		$	125,737			2	%		*
Noninterest income		81,376			76,316			82,720			88,032			92,685			7	%		(12	)%
Total revenue		206,846			199,316			210,118			216,203			218,422			4	%		(5	)%
Total noninterest expense		168,424			168,239			163,048			153,925			146,328			*			15	%
Provision		51,025			97,826			105,825			58,200			89,477			(48	)%		(43	)%
Pretax income/(loss)	$	(12,603	)	$	(66,749	)	$	(58,755	)	$	4,078		$	(17,383	)		81	%		27	%
Efficiency ratio		81.43	%		84.41	%		77.60	%		71.19	%		66.99	%
Balance Sheet (millions)
Average loans	$	10,519		$	10,887		$	10,898		$	10,915		$	10,801			(3	)%		(3	)%
Other earning assets		156			203			163			65			242			(23	)%		(36	)%
Total earning assets		10,675			11,090			11,061			10,980			11,043			(4	)%		(3	)%
Core deposits		10,336			10,249			9,753			9,564			9,970			1	%		4	%
Other deposits		1,010			996			978			976			1,053			1	%		(4	)%
Deposits — divestiture		—			—			—			—			37			NM			NM
Total deposits		11,346			11,245			10,731			10,540			11,060			1	%		3	%
Total period end deposits		11,447			11,493			10,993			10,621			11,035			*			4	%
Total period end assets	$	10,810		$	11,419		$	11,887		$	12,183		$	12,106			(5	)%		(11	)%
Net interest margin		4.71	%		4.50	%		4.58	%		4.64	%		4.58	%
Noninterest Income Detail
Deposit transactions & cash mgmt	$	40,186		$	37,438		$	42,388		$	44,470		$	45,404			7	%		(11	)%
Insurance commissions		6,595			6,966			7,027			7,160			7,033			(5	)%		(6	)%
Trust services & investment mgmt		7,672			6,840			7,697			8,192			8,915			12	%		(14	)%
Bankcard Income		4,325			4,129			4,416			4,706			4,752			5	%		(9	)%
Other service charges		4,011			3,485			3,500			3,556			3,780			15	%		6	%
Miscellaneous revenue		18,587			17,458			17,692			19,948			22,801			6	%		(18	)%
Total noninterest income	$	81,376		$	76,316		$	82,720		$	88,032		$	92,685			7	%		(12	)%
Key Statistics
Locations
Financial Centers		200			202			202			200			198			(1	)%		1	%
Full Service		168			168			169			166			163			—			3	%
Teller-Only		32			34			33			34			35			(6	)%		(9	)%
Trust Assets
Total assets (millions)	$	9,017		$	8,872		$	9,606		$	11,015		$	11,291			2	%		(20	)%
Total managed assets (millions)		4,508			4,467			4,664			5,089			5,373			1	%		(16	)%

NM — Not meaningful
*	Amount is less than one percent.
Certain previously reported amounts have been reclassified to agree with current presentation.

17

CAPITAL MARKETS
Quarterly, Unaudited

																2Q09 Change vs.
(Thousands)	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08
Income Statement
Net interest income Correspondent Banking	$	16,186		$	14,750		$	12,810		$	12,422		$	12,933			10	%		25	%
Capital Markets		8,731			9,279			7,828			7,182			6,117			(6	)%		43	%
Total net interest income		24,917			24,029			20,638			19,604			19,050			4	%		31	%
Noninterest income:
Fixed income		170,106			197,005			156,522			80,104			105,002			(14	)%		62	%
Other		19,482			19,685			20,763			18,410			19,631			(1	)%		(1	)%
Total noninterest income		189,588			216,690			177,285			98,514			124,633			(13	)%		52	%
Total revenue		214,505			240,719			197,923			118,118			143,683			(11	)%		49	%
Noninterest expense		114,423			151,961			115,427			87,715			100,802			(25	)%		14	%
Provision		21,104			14,009			8,108			38,451			18,522			51	%		14	%
Pretax income/(loss)	$	78,978		$	74,749		$	74,388		$	(8,048	)	$	24,359			6	%		224	%
Efficiency ratio		53.34	%		63.13	%		58.32	%		74.26	%		70.16	%
Fixed income average daily revenue	$	2,700		$	3,230		$	2,525		$	1,252		$	1,641			(16	)%		65	%
Balance Sheet (millions)
Trading inventory	$	966		$	1,117		$	1,135		$	1,356		$	1,631			(14	)%		(41	)%
Average loans (a)		2,010			1,962			1,720			1,759			1,491			2	%		35	%
Other earning assets		720			874			980			1,276			1,656			(18	)%		(57	)%
Total earning assets		3,696			3,953			3,835			4,391			4,778			(7	)%		(23	)%
Total period end assets	$	4,921		$	5,219		$	5,051		$	5,960		$	5,582			(6	)%		(12	)%
Net interest margin:
Correspondent Banking		4.35	%		4.03	%		3.59	%		3.12	%		3.19	%
Capital Markets		1.59	%		1.52	%		1.29	%		1.02	%		0.78	%
Total Capital Markets		2.70	%		2.47	%		2.14	%		1.78	%		1.60	%

NM — Not meaningful

*	Amount is less than one percent.
Certain previously reported amounts have been reclassified to agree with current presentation.
(a)	Includes trust preferred warehouse loans moved from loans held for sale to loans held to maturity in 2Q08.

18

NATIONAL SPECIALTY LENDING
Quarterly, Unaudited

																2Q09 Change vs.
(Thousands)	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08
Income Statement
Net interest income	$	31,157		$	33,541		$	36,822		$	45,197		$	53,460			(7	)%		(42	)%
Noninterest income/(loss)		(9,050	)		(6,698	)		(561	)		4,122			(14,598	)		(35	)%		38	%
Total revenue		22,107			26,843			36,261			49,319			38,862			(18	)%		(43	)%
Total noninterest expense		41,019			31,883			24,886			26,044			29,026			29	%		41	%
Provision		176,348			188,573			144,049			240,471			108,000			(6	)%		63	%
Pretax loss	$	(195,260	)	$	(193,613	)	$	(132,674	)	$	(217,196	)	$	(98,164	)		(1	)%		(99	)%
Efficiency ratio	NM			NM			NM			NM			NM
Balance Sheet (millions)
Average loans	$	6,928		$	7,484		$	7,922		$	8,415		$	8,966			(7	)%		(23	)%
Other earning assets		7			9			9			8			17		NM			NM
Total earning assets		6,935			7,493			7,931			8,423			8,983			(7	)%		(23	)%
Total deposits		128			134			140			181			240			(4	)%		(47	)%
Total period end deposits		117			131			126			156			208			(11	)%		(44	)%
Net interest margin		1.80	%		1.82	%		1.85	%		2.13	%		2.39	%

NM — Not meaningful
*	Amount is less than one percent.
Certain previously reported amounts have been reclassified to agree with current presentation.

19

MORTGAGE BANKING
Quarterly, Unaudited

																2Q09 Change vs.
(Thousands)	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09	2Q08
Income Statement
Net interest income	$	10,792		$	11,003		$	12,385		$	25,423		$	35,128		NM	NM
Noninterest income Net origination fees (a)		(1,263	)		14,454			(14,383	)		19,828			134,095		NM	NM
Net servicing fees		16,210			101,202			99,402			80,603			42,614		NM	NM
Other fees		4,286			5,544			(1,580	)		11,892			10,596		NM	NM
Total noninterest income		19,233			121,200			83,439			112,323			187,305		NM	NM
Total revenue		30,025			132,203			95,824			137,746			222,433		NM	NM
Noninterest expense		63,179			47,857			39,664			90,486			150,201		NM	NM
Provision/(benefit)		11,523			(408	)		22,018			2,878			4,001		NM	NM
Pretax income/(loss)	$	(44,677	)	$	84,754		$	34,142		$	44,382		$	68,231		NM	NM
Efficiency ratio	NM			NM			NM			NM			NM
Average Balance Sheet (millions)
Warehouse	$	433		$	430		$	489		$	1,810		$	3,182		NM	NM
Trading securities		132			164			235			359			372		NM	NM
Mortgage servicing rights		309			396			633			1,003			974		NM	NM
Permanent Mortgages & other assets		1,075			1,267			1,046			1,363			1,392		NM	NM
Total assets		1,949			2,257			2,403			4,535			5,920		NM	NM
Escrow balances		1,021			1,165			725			989			1,516		NM	NM
Net interest margin		3.42	%		3.18	%		3.22	%		3.45	%		3.49	%
Warehouse Spread	NM			NM			NM				3.83	%		3.14	%
Noninterest Expense Detail
Commissions & incentives	$	—		$	—		$	130		$	18,415		$	41,369
FAS 91 cost deferral		13			57			492			1,097			1,789
Other salaries & benefits		4			(27	)		(2,090	)		22,011			39,228
Total salaries & benefits		17			30			(1,468	)		41,523			82,386		NM	NM
Contract labor & outsourcing		5,138			7,247			7,381			5,207			3,654
Equipment & occupancy		135			945			3,448			8,882			13,513
Foreclosure and repurchase provision		29,098			12,267			2,752			849			5,535
Other expenses		26,118			25,175			25,674			32,636			43,535
Total expenses before FAS 91 reclass		60,506			45,664			37,787			89,097			148,623		NM	NM
FAS 91 reclassification		(21	)		(73	)		(517	)		(3,064	)		(4,520	)
Total noninterest expense before segment allocations		60,485			45,591			37,270			86,033			144,103
Segment allocations		2,694			2,266			2,394			4,453			6,098
Total noninterest expense	$	63,179		$	47,857		$	39,664		$	90,486		$	150,201		NM	NM
Origination Income
Origination fees	$	(14	)	$	26		$	(55	)	$	22,995		$	48,555
FAS 91 fee deferral		13			57			496			937			1,381
Appraisal, final inspection, credit report fees		2			—			45			2,824			5,537
Total origination fees	$	1		$	83		$	486		$	26,756		$	55,473		NM	NM
Total origination income (a)	$	(1,263	)	$	14,454		$	(14,383	)	$	19,828		$	134,095		NM	NM
Warehouse/Pipeline (millions)
Ending Warehouse Balance	$	389		$	442		$	408		$	541		$	2,433		NM	NM
Production (millions)
First lien production	$	445		$	408		$	88		$	3,107		$	6,826		NM	NM

NM — Not meaningful due to Mortgage sale in 3Q08
Certain previously reported amounts have been reclassified to agree with current presentation.
(a)	Includes mortgage warehouse valuation adjustment.

20

MORTGAGE BANKING: SERVICING
Quarterly, Unaudited

																2Q09 Change vs.
(Thousands)	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08
Servicing Income
Gross Service Fees	$	32,781		$	40,120		$	47,810		$	57,326		$	74,941
Guarantee Fees		(4,752	)		(6,884	)		(7,626	)		(11,073	)		(16,762	)
Sub-Service Fee Income		—			—			103			394			504
Lender Paid MI		—			—			5			(1,029	)		(3	)
Net Service Fees		28,029			33,236			40,292			45,618			58,680			(16	)%		(52	)%
Early Payoff Interest Expense		(3,788	)		(3,716	)		(1,562	)		(1,733	)		(4,477	)
Ancillary Fees		3,442			5,511			5,949			5,994			8,991
Total Service Fees		27,683			35,031			44,679			49,879			63,194			(21	)%		(56	)%
Change in MSR Value — Runoff		(18,432	)		(18,559	)		(9,899	)		(20,091	)		(37,079	)		1	%		50	%
Net hedging results:
Change in MSR Value — Other than Runoff		44,232			27,282			(327,310	)		(39,180	)		237,816
MSR Hedge Gains/(Losses)		(39,558	)		25,112			385,354			91,804			(219,454	)
Change in Trading Asset Value		21,619			18,339			(99,354	)		(11,198	)		83,543
Trading Asset Hedge Gains/(Losses)		(19,334	)		13,997			108,742			21,505			(78,832	)
Option Expense on Servicing Hedges		—			—			(2,811	)		(12,116	)		(6,574	)
Total net hedging results		6,959			84,730			64,621			50,815			16,499			(92	)%		(58	)%
Total Servicing Income	$	16,210		$	101,202		$	99,401		$	80,603		$	42,614			(84	)%		(62	)%
Key Servicing Metrics (millions)
Beginning Servicing Portfolio	$	60,182		$	63,661		$	65,346		$	98,385		$	99,022
Additions to portfolio, net of REO transfers		(565	)		(352	)		(83	)		3,107			6,991
Prepayments		(6,099	)		(3,146	)		(1,146	)		(1,350	)		(2,811	)
Amortization		—			—			(420	)		(550	)		(672	)
Service Release Sales		256			19			(31	)		(117	)		(76	)
Bulk Sale		(13,341	)		—			(5	)		(34,129	)		(4,069	)
Ending Servicing Portfolio (Owned)	$	40,433		$	60,182		$	63,661		$	65,346		$	98,385			(33	)%		(59	)%
Avg. Servicing Portfolio (Owned)	$	45,422		$	55,200		$	64,550		$	81,130		$	95,124			(18	)%		(52	)%
Average Loans Serviced (#)		236,475			295,326			351,157			450,651			547,828			(20	)%		(57	)%
Portfolio Product Mix (Average)
GNMA		3	%		3	%		3	%		5	%		10	%
FNMA/FHLMC		47	%		51	%		58	%		64	%		63	%
Private		47	%		45	%		38	%		30	%		24	%
Sub-Total		97	%		99	%		99	%		99	%		97	%
Warehouse		3	%		1	%		1	%		1	%		3	%
Total		100	%		100	%		100	%		100	%		100	%
Other Portfolio Statistics
Net Service Fees — Annualized (bps)		25			24			25			23			25
Total Service Fees — Annualized (bps)		24			25			28			25			27
Ancillary Income per Loan (Annualized)	$	58.22		$	74.64		$	67.77		$	53.20		$	65.65			(22	)%		(11	)%
Servicing Cost per Loan (Annualized)	$	80.94		$	94.25		$	79.80		$	62.46		$	61.25			(14	)%		32	%
Average Servicing Asset (millions)		307			395			632			1,002			973
Servicing Book Value (bps)		68			72			98			124			102
90+ Delinquency Rate, excluding foreclosures		7.04	%		6.14	%		3.47	%		2.58	%		2.08	%
Change in MSR Asset / Average Servicing Asset		18	%		28	%		(105	)%		(13	)%		8	%
Run-Off Rate — Annualized		25	%		23	%		10	%		10	%		16	%

NM — Not meaningful
*	Amount is less than one percent.
Certain previously reported amounts have been reclassified to agree with current presentation.

21

CORPORATE
Quarterly, Unaudited

																2Q09 Change vs.
(Thousands)	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08
Income Statement
Net interest income	$	7,271		$	5,540		$	8,259		$	5,118		$	5,663			31	%		28	%
Net interest expense from deferred compensation		(521	)		(526	)		(554	)		(366	)		(143	)		1	%		(264	)%
Total net interest income		6,750			5,014			7,705			4,752			5,520			35	%		22	%
Noninterest income		6,503			3,106			6,320			7,537			8,669			109	%		(25	)%
Noninterest income/(loss) from deferred compensation		4,958			(2,743	)		(12,531	)		(5,145	)		1,324			281	%		274	%
Total noninterest income/(loss)		11,461			363			(6,211	)		2,392			9,993		NM				15	%
Securities gains/(losses), net		(330	)		(2	)		1,346			(210	)		(972	)	NM				66	%
Total revenue		17,881			5,375			2,840			6,934			14,541			233	%		23	%
Noninterest expense		18,337			20,283			17,026			48,683			34,823			(10	)%		(47	)%
Deferred compensation Income/(loss)		6,550			(2,895	)		(14,603	)		(7,455	)		1,820			326	%		260	%
Total noninterest expense		24,887			17,388			2,423			41,228			36,643			43	%		(32	)%
Pretax income/(loss)	$	(7,006	)	$	(12,013	)	$	417		$	(34,294	)	$	(22,102	)		42	%		68	%
Average Balance Sheet (millions)
Total earning assets		3,600			3,489			3,329			2,835			2,974			3	%		21	%
Net interest margin		.75	%		.58	%		.92	%		.67	%		.75	%

NM — Not meaningful
*	Amount is less than one percent.
Certain previously reported amounts have been reclassified to agree with current presentation.

22

CAPITAL HIGHLIGHTS
Quarterly, Unaudited

																2Q09 Change vs.
(Dollars in millions, except per share amounts)	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08
Tier 1 Capital (a)	$	3,596.3		$	3,709.0		$	3,784.1		$	2,934.0		$	3,034.7			(3	)%		19	%
Tier 2 Capital (a)		1,208.0			1,295.6			1,299.5			1,313.7			1,341.7			(7	)%		(10	)%
Total Capital (a)	$	4,804.3		$	5,004.6		$	5,083.6		$	4,247.7		$	4,376.4			(4	)%		10	%
Risk-Adjusted Assets (a)	$	23,327.7		$	24,771.8		$	25,185.4		$	26,427.2		$	28,884.7			(6	)%		(19	)%
Tier 1 Ratio (a)		15.42	%		14.97	%		15.03	%		11.10	%		10.51	%
Tier 2 Ratio (a)		5.17			5.23			5.15			4.97			4.64
Total Capital Ratio (a)		20.59	%		20.20	%		20.18	%		16.07	%		15.15	%
Tier 1 Common Ratio (a)		9.48	%		9.40	%		9.56	%		8.85	%		8.45	%
Leverage Ratio (a)		12.49	%		12.23	%		12.22	%		8.84	%		8.45	%
Shareholders’ Equity/Assets Ratio (b)	$	11.80		$	11.24		$	11.52		$	8.76		$	8.42
Adjusted Tangible Common Equity/RWA (a) (d)		8.64			8.61			8.80			8.78			8.45
Tangible Common Equity/Tangible Assets		7.27			7.07			7.34			7.18			6.96
Tangible Book Value Per Common Share (c)		9.64			10.19			10.55			10.92			11.46
Book Value Per Common Share (c)		10.73			11.29			11.66			12.04			12.59

NM — Not meaningful
*	Amount is less than one percent.
Certain previously reported amounts have been reclassified to agree with current presentation.
(a)	Current quarter is an estimate.
(b)	Calculated on period-end balances.
(c)	Shares restated for stock dividends distributed through July 1, 2009.
(d)	See Glossary of Terms for definition of ratios.

23

ASSET QUALITY: CONSOLIDATED
Quarterly, Unaudited

																2Q09 Change vs.
(Thousands)	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08
Allowance for Loan Losses Walk-Forward
Beginning Reserve	$	940,932		$	849,210		$	760,456		$	575,149		$	483,203			11	%		95	%
Provision		260,000			300,000			280,000			340,000			220,000			(13	)%		18	%
Divestitures/acquisitions/transfers		—			—			—			—			(382	)		—			100	%
Charge-offs		(250,330	)		(217,161	)		(199,075	)		(160,200	)		(131,385	)		(15	)%		(91	)%
Recoveries		10,880			8,883			7,829			5,507			3,713			22	%		193	%
Ending Balance	$	961,482		$	940,932		$	849,210		$	760,456		$	575,149			2	%		67	%
Reserve for off-balance sheet commitments		22,823			19,511			18,752			19,109			22,303			17	%		2	%
Total allowance for loan losses plus reserve	$	984,305		$	960,443		$	867,962		$	779,565		$	597,452			2	%		65	%
Allowance for Loan Losses
Regional Banking	$	340,199		$	348,435		$	311,399		$	269,397		$	240,507			(2	)%		41	%
Capital Markets		79,309			72,001			63,554			63,654			42,745			10	%		86	%
National Specialty Lending		512,131			495,936			446,254			420,220			287,212			3	%		78	%
Mortgage Banking		29,843			24,560			28,003			7,185			4,685			22	%	NM
Total allowance for loan losses	$	961,482		$	940,932		$	849,210		$	760,456		$	575,149			2	%		67	%
Non-Performing Assets
Regional Banking
Nonperforming loans	$	213,201		$	193,191		$	163,933		$	133,138		$	115,264			10	%		85	%
Foreclosed real estate		29,410			31,305			31,665			32,078			37,594			(6	)%		(22	)%
Total Regional Banking		242,611			224,496			195,598			165,216			152,858			8	%		59	%
Capital Markets
Nonperforming loans		70,994			40,383			27,339			27,284			41,527			76	%		71	%
Foreclosed real estate		596			641			600			600			600			(7	)%		(1	)%
Total Capital Markets		71,590			41,024			27,939			27,884			42,127			75	%		70	%
National Specialty Lending
Nonperforming loans		764,672			845,964			834,042			718,624			582,523			(10	)%		31	%
Foreclosed real estate		50,386			64,586			52,725			57,251			45,384			(22	)%		11	%
Total National Specialty Lending		815,058			910,550			886,767			775,875			627,907			(10	)%		30	%
Mortgage Banking
Nonperforming loans — including held for sale (a)		78,090			53,569			28,335			20,930			30,704			46	%		154	%
Foreclosed real estate		25,728			22,514			19,318			25,589			22,542			14	%		14	%
Total Mortgage Banking		103,818			76,083			47,653			46,519			53,246			36	%		95	%
Total nonperforming assets	$	1,233,077		$	1,252,153		$	1,157,957		$	1,015,494		$	876,138			(2	)%		41	%
Net Charge-Offs
Regional Banking	$	59,262		$	60,791		$	63,822		$	29,310		$	33,337			(3	)%		78	%
Capital Markets		13,795			5,563			8,207			17,543			114			148	%	NM
National Specialty Lending		160,152			138,889			118,017			107,462			93,640			15	%		71	%
Mortgage Banking		6,240			3,035			1,200			378			581			106	%	NM
Total net charge-offs	$	239,449		$	208,278		$	191,246		$	154,693		$	127,672			15	%		88	%
Consolidated Key Ratios (b)
NPL %		5.64	%		5.44	%		4.91	%		4.12	%		3.42	%
NPA %		6.15			5.98			5.38			4.63			3.88
Net charge-offs %		4.77			3.97			3.61			2.84			2.35
Allowance / Loans		4.91			4.57			3.99			3.52			2.59
Allowance to loans excluding insured loans		5.03			4.69			4.11			3.63			2.68
Allowance / NPL		.87	x		.84	x		.81	x		.85	x		.76	x
Allowance / NPA		.79	x		.76	x		.74	x		.76	x		.66	x
Allowance / Charge-offs		1.00	x		1.13	x		1.11	x		1.23	x		1.13	x
Other
Loans past due 90 days or more (c)	$	182,468		$	250,801		$	133,067		$	119,588		$	157,277			(27	)%		16	%
Guaranteed portion (c)		36,379			40,205			42,478			50,419			64,696			(10	)%		(44	)%
Foreclosed real estate from GNMA loans		10,464			13,607			21,230			35,943			35,737			(23	)%		(71	)%
Period-end loans, net of unearned income (millions)	$	19,586		$	20,572		$	21,278		$	21,602		$	22,225			(5	)%		(12	)%
Insured loans (millions)		466			528			591			652			739			(12	)%		(37	)%
Total loans excluding insured loans (millions)	$	19,119		$	20,044		$	20,687		$	20,950		$	21,486			(5	)%		(11	)%
Off-balance sheet commitments (millions) (d)	$	5,882		$	6,077		$	6,442		$	6,746		$	6,444			(3	)%		(9	)%

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

NM — Not meaningful

*	Amount is less than one percent
(a)	2Q 2009 includes $55,425 of loans held-to-maturity.
(b)	See Glossary of Terms for definitions of Consolidated Key Ratios.
(c)	Includes loans held for sale.
(d)	Amount of off-balance sheet commitments for which a reserve has been provided.

24

ASSET QUALITY: CONSOLIDATED
Quarterly, Unaudited

																2Q09 Change vs.
	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08
Key Portfolio Details
Commercial (C&I & Other)
Period-end loans ($ millions)	$	7,381		$	7,676		$	7,806		$	7,618		$	7,721			(4	)%		(4	)%
30+ Delinq. % (a)		.82	%		1.53	%		.53	%		1.15	%		1.46	%
NPL %		1.52			1.35			1.03			1.05			1.20
Charge-offs % (qtr. annualized)		1.43			1.55			2.21			1.64			.84
Allowance / Loans %		3.40	%		2.97	%		2.46	%		2.29	%		1.90	%
Allowance / Charge-offs		2.35x			1.89x			1.16x			1.41x			2.46x
Income CRE (Income-producing Commercial Real Estate)
Period-end loans ($ millions)	$	1,871		$	1,938		$	1,988		$	2,038		$	2,039			(3	)%		(8	)%
30+ Delinq. % (a)		2.82	%		4.23	%		2.42	%		3.47	%		1.43	%
NPL %		8.67			6.30			5.02			3.72			3.54
Charge-offs % (qtr. annualized)		6.40			3.36			2.73			.24			.63
Allowance / Loans %		5.77	%		5.21	%		4.71	%		3.73	%		2.89	%
Allowance / Charge-offs		0.87x			1.53x			1.70x			15.48x			4.82x
Residential CRE (Homebuilder and Condominium Construction)
Period-end loans ($ millions)	$	986		$	1,133		$	1,288		$	1,480		$	1,739			(13	)%		(43	)%
30+ Delinq. % (a)		5.29	%		10.43	%		3.74	%		5.73	%		6.36	%
NPL %		39.44			36.34			30.71			23.64			16.65
Charge-offs % (qtr. annualized)		17.22			18.10			15.79			11.95			6.23
Allowance / Loans %		9.87	%		8.59	%		8.25	%		7.55	%		5.26	%
Allowance / Charge-offs		.53x			.44x			.49x			.58x			.76x
Consumer Real Estate (Home Equity Installment and HELOC)
Period-end loans ($ millions)	$	7,356		$	7,609		$	7,749		$	7,830		$	7,909			(3	)%		(7	)%
30+ Delinq. % (a)		2.12	%		2.01	%		1.97	%		1.49	%		1.27	%
NPL %		.08			.07			.07			.07			.09
Charge-offs % (qtr. annualized)		3.01			2.38			1.81			1.41			1.78
Allowance / Loans %		3.04	%		3.06	%		2.35	%		1.58	%		1.70	%
Allowance / Charge-offs		0.99x			1.27x			1.29x			1.12x			.95x
OTC (Consumer Residential Construction Loans)
Period-end loans ($ millions)	$	558		$	773		$	981		$	1,202		$	1,522			(28	)%		(63	)%
30+ Delinq. % (a)		7.90	%		2.82	%		4.43	%		4.92	%		2.69	%
NPL %		64.06			55.19			43.03			28.94			17.61
Charge-offs % (qtr. annualized)		30.53			21.10			14.80			12.29			9.90
Allowance / Loans %		29.46	%		23.74	%		20.44	%		20.16	%		7.75	%
Allowance / Charge-offs		.80x			.99x			1.25x			1.46x			.78x
Permanent Mortgage
Period-end loans ($ millions)	$	1,112		$	1,109		$	1,127		$	1,080		$	1,004			*			11	%
30+ Delinq. % (a)		9.44	%		10.11	%		6.94	%		7.38	%		6.36	%
NPL %		6.97			4.48			3.73			2.94			3.04
Charge-offs % (qtr. annualized)		7.97			3.47			.57			.22			1.15
Allowance / Loans %		8.85	%		7.06	%		4.76	%		1.17	%		1.24	%
Allowance / Charge-offs		1.08x			2.04x			8.59x			5.48x			1.12x
Credit Card and Other
Period-end loans ($ millions)	$	323		$	335		$	339		$	354		$	291			(4	)%		11	%
30+ Delinq. % (a)		2.08	%		2.33	%		2.47	%		2.08	%		2.11	%
NPL %		—			—			—			—			—
Charge-offs % (qtr. annualized)		6.57	%		4.81	%		5.09	%		5.30	%		3.29	%
Allowance / Loans %		5.91	%		6.04	%		6.35	%		5.52	%		5.43	%
Allowance / Charge-offs		0.90x			1.26x			1.24x			1.06x			1.45x

*	Amount is less than one percent
Certain previously reported amounts have been reclassified to agree with current presentation.
(a)	30+ Delinquency % includes all accounts delinquent more than one month and still accruing interest.

25

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

($ in millions)

Commercial Portfolio

Reserves

	Reserves		Balances		%
FAS 114 Impaired Loans with Reserves	$	8.6	$	25.5		34.63	%
FAS 114 Impaired Loans without Reserves		—		522.2		—
All Other Loans		447.8		9,690.5		4.62	%
Total	$	456.4	$	10,238.2		4.46	%

NRV Assessment of Commercial FAS 114 Impaired Assets with no Reserves

											Book Bal /
	#		Appraised Value		Legal Balance		Cumulative C/O		Book Balance		Appraised Val
FAS 114 Relationships with no Reserves		192		$836.8		$785.1		$262.9		$522.2		62.4	%

ORE Inventory Rollforward (a)

	2Q09			1Q09			4Q08			3Q08			2Q08
Beginning ORE	$	119.0		$	104.3		$	115.5		$	106.1		$	83.7
- Dispositions (b)		(51.9	)		(30.0	)		(33.0	)		(28.2	)		(12.9	)
+ Additions		39.0			44.7			21.8			37.6			35.3
Ending ORE	$	106.1		$	119.0		$	104.3		$	115.5		$	106.1

(a) OREO excludes foreclosed real estate from GNMA loans.

(b) Includes fair value adjustments.

NPL Rollforward (c)

	2Q09			1Q09			4Q08			3Q08			2Q08
Beginning NPLs	$	1,064		$	998		$	854		$	722		$	501
+ Additions		232			317			395			356			365
+ Principal Increase		19			13			6			4			3
- Payments		(113	)		(81	)		(83	)		(75	)		(36	)
- Net Charge-Offs		(155	)		(149	)		(150	)		(122	)		(86	)
- Transfer to ORE		(25	)		(33	)		(18	)		(30	)		(24	)
- Upgrade to Accrual		(1	)		(1	)		(6	)		(1	)		(1	)
Ending NPLs	$	1,021		$	1,064		$	998		$	854		$	722

(c) Includes Commercial & One Time Close Portfolios only.

26

ASSET QUALITY: REGIONAL BANKING
Quarterly, Unaudited

																2Q09 Change vs.
	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08
Total Regional Banking
Period-end loans ($ millions)	$	10,282		$	10,727		$	11,017		$	11,008		$	11,037			(4	)%		(7	)%
30+ Delinq. % (a)		1.37	%		1.87	%		1.07	%		1.45	%		1.50	%
NPL %		2.07			1.80			1.49			1.21			1.04
Charge-offs % (qtr. annualized)		2.25			2.23			2.34			1.07			1.23
Allowance / Loans %		3.31	%		3.25	%		2.83	%		2.45	%		2.18	%
Allowance / Charge-offs		1.44	x		1.43	x		1.22	x		2.30	x		1.80	x
Key Portfolio Details
Commercial (C&I & Other)
Period-end loans ($ millions)	$	5,503		$	5,855		$	6,132		$	6,064		$	6,107			(6	)%		(10	)%
30+ Delinq. % (a)		1.04	%		1.56	%		.54	%		1.37	%		1.40	%
NPL %		1.46			1.33			1.18			1.09			.92
Charge-offs % (qtr. annualized)		1.44			1.96			2.36			.96			1.03
Allowance / Loans %		3.34	%		2.93	%		2.34	%		2.10	%		1.92	%
Allowance / Charge-offs		2.24	x		1.46	x		1.01	x		2.21	x		1.98	x
Income CRE (Income-producing Commercial Real Estate)
Period-end loans ($ millions)	$	1,424		$	1,438		$	1,462		$	1,504		$	1,484			(1	)%		(4	)%
30+ Delinq. % (a)		1.63	%		2.82	%		1.25	%		1.21	%		.99	%
NPL %		4.33			3.57			2.31			1.73			1.60
Charge-offs % (qtr. annualized)		5.29			2.57			1.50			.07			.46
Allowance / Loans %		5.23	%		5.07	%		4.70	%		3.45	%		2.80	%
Allowance / Charge-offs		.97	x		1.94	x		3.09	x		49.80	x		6.68	x
Residential CRE (Homebuilder and Condominium Construction)
Period-end loans ($ millions)	$	357		$	396		$	435		$	473		$	528			(10	)%		(32	)%
30+ Delinq. % (a)		5.51	%		6.61	%		4.97	%		3.94	%		5.43	%
NPL %		19.73			16.10			13.27			8.71			6.68
Charge-offs % (qtr. annualized)		6.46			8.81			9.97			4.55			2.02
Allowance / Loans %		10.32	%		10.19	%		8.54	%		8.52	%		5.61	%
Allowance / Charge-offs		1.49	x		1.09	x		.83	x		1.75	x		2.93	x
Consumer Real Estate (Home Equity Installment and HELOC)
Period-end loans ($ millions)	$	2,669		$	2,696		$	2,644		$	2,606		$	2,614			(1	)%		2	%
30+ Delinq. % (a)		1.31	%		1.32	%		1.41	%		1.32	%		1.22	%
Charge-offs % (qtr. annualized)		1.36			1.45			1.23			.81			1.50
Allowance / Loans %		1.12	%		1.79	%		1.70	%		1.26	%		1.36	%
Allowance / Charge-offs		.81	x		1.24	x		1.40	x		1.57	x		.90	x
Credit Card, Permanent Mortgage, and Other
Period-end loans ($ millions)	$	328		$	342		$	345		$	361		$	304			(4	)%		8	%
30+ Delinq. % (a)		1.77	%		1.83	%		2.09	%		1.66	%		1.71	%
Charge-offs % (qtr. annualized)		5.10			3.48			4.04			4.69			2.37
Allowance / Loans %		4.61	%		4.56	%		5.07	%		5.31	%		5.55	%
Allowance / Charge-offs		.90	x		1.31	x		1.25	x		1.16	x		2.34	x

*	Amount is less than one percent
Certain previously reported amounts have been reclassified to agree with current presentation.
(a)	30+ Delinquency % includes all accounts delinquent more than one month and still accruing interest.

27

ASSET QUALITY: MORTGAGE BANKING & CAPITAL MARKETS
Quarterly, Unaudited

																2Q09 Change vs.
	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08
Total Mortgage Banking
Period-end loans ($ millions)	$	592		$	668		$	674		$	746		$	715			(11	)%		(17	)%
30+ Delinq. % (a)		6.03	%		7.09	%		3.63	%		3.35	%		2.88	%
NPL %		9.37	%		5.84	%		2.95	%		1.59	%		.40	%
Allowance / Loans %		5.04	%		3.67	%		4.15	%		.96	%		.66	%
Total Capital Markets
Period-end loans ($ millions)	$	2,059		$	2,034		$	1,918		$	1,790		$	1,851			1	%		11	%
30+ Delinq. % (a)		.56	%		2.13	%		.68	%		1.45	%		2.44	%
NPL %		3.45			1.99			1.43			1.52			2.24
Charge-offs % (qtr. annualized)		2.74			1.14			1.91			3.99			.03
Allowance / Loans %		3.85	%		3.54	%		3.31	%		3.56	%		2.31	%
Allowance / Charge-offs		1.44	x		3.24	x		1.94	x		.91	x		93.74	x

*	Amount is less than one percent
Certain previously reported amounts have been reclassified to agree with current presentation.
(a)	30+ Delinquency % includes all accounts delinquent more than one month and still accruing interest.

28

ASSET QUALITY: NATIONAL SPECIALTY LENDING
Quarterly, Unaudited

																2Q09 Change vs.
	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08
Total National Specialty Lending
Period-end loans ($ millions)	$	6,653		$	7,143		$	7,668		$	8,058		$	8,622			(7	)%		(23	)%
30+ Delinq. % (a)		4.35	%		4.49	%		3.46	%		3.67	%		2.67	%
NPL %		11.49			11.84			10.88			8.92			6.76
Charge-offs % (qtr. annualized)		9.25			7.47			6.00			5.14			4.18
Allowance / Loans %		7.70	%		6.94	%		5.82	%		5.21	%		3.33	%
Allowance / Charge-offs		.80	x		.89	x		.95	x		.98	x		.77	x
Key Portfolio Details
Income CRE (Income-producing Commercial Real Estate)
Period-end loans ($ millions)	$	314		$	341		$	356		$	378		$	395			(8	)%		(20	)%
30+ Delinq. % (a)		8.16	%		9.03	%		7.51	%		13.37	%		.80	%
NPL %		24.59			20.52			18.22			12.77			12.15
Charge-offs % (qtr. annualized)		7.70			7.66			8.74			.91			1.43
Allowance / Loans %		8.02	%		5.23	%		4.67	%		4.28	%		2.63	%
Allowance / Charge-offs		.98	x		.67	x		.50	x		4.53	x		1.72	x
Residential CRE (Homebuilder and Condominium Construction)
Period-end loans ($ millions)	$	579		$	682		$	780		$	927		$	1,133			(15	)%		(49	)%
30+ Delinq. % (a)		4.87	%		12.47	%		3.19	%		5.05	%		6.62	%
NPL %		52.10			48.91			40.97			32.03			22.02
Charge-offs % (qtr. annualized)		23.56			22.50			19.26			16.06			8.18
Allowance / Loans %		9.75	%		7.55	%		8.03	%		6.79	%		4.90	%
Allowance / Charge-offs		.37	x		.31	x		.38	x		.38	x		.50	x
Consumer Real Estate (Home Equity Installment and HELOC)
Period-end loans ($ millions)	$	4,686		$	4,913		$	5,105		$	5,223		$	5,295			(5	)%		(11	)%
30+ Delinq. % (a)		2.59	%		2.38	%		2.26	%		1.57	%		1.30	%
NPL %		.13			.10			.10			.11			.13
Charge-offs % (qtr. annualized)		3.94			2.88			2.10			1.70			1.91
Allowance / Loans %		4.13	%		3.76	%		2.68	%		1.74	%		1.84	%
Allowance / Charge-offs		1.03	x		1.28	x		1.26	x		1.01	x		.96	x
OTC (Consumer Residential Construction Loans)
Period-end loans ($ millions)	$	558		$	773		$	981		$	1,202		$	1,522			(28	)%		(63	)%
30+ Delinq. % (a)		7.90	%		2.82	%		4.43	%		4.92	%		2.69	%
NPL %		64.06			55.19			43.03			28.94			17.61
Charge-offs % (qtr. annualized)		30.53			21.10			14.80			12.29			9.90
Allowance / Loans %		29.46	%		23.74	%		20.44	%		20.16	%		7.75	%
Allowance / Charge-offs		.80	x		.99	x		1.25	x		1.46	x		.78	x
Permanent Mortgage
Period-end loans ($ millions)	$	490		$	407		$	417		$	297		$	249			20	%		97	%
30+ Delinq. % (a)		13.90	%		15.72	%		12.60	%		18.39	%		16.43	%
NPL %		4.42			2.50			5.32			6.71			7.14
Charge-offs % (qtr. annualized)		.14			.06			—			—			—
Allowance / Loans %		13.93	%		13.14	%		6.13	%		1.84	%		2.38	%
Allowance / Charge-offs		1.03	x		8.14	x	NM				—			—
Other Consumer
Period-end loans ($ millions)	$	25		$	26		$	29		$	30		$	28			(5	)%		(12	)%
30+ Delinq. % (a)		8.05	%		8.56	%		8.14	%		6.65	%		6.39	%
NPL %		—			—			—			—			—
Charge-offs % (qtr. annualized)		17.40	%		15.27	%		11.31	%		11.66	%		13.26
Allowance / Loans %		17.35	%		18.94	%		13.87	%		7.84	%		4.06	%
Allowance / Charge-offs		.96	x		1.16	x		1.22	x		.66	x		.31	x

*	Amount is less than one percent
Certain previously reported amounts have been reclassified to agree with current presentation.
(a)	30+ Delinquency % includes all accounts delinquent more than one month and still accruing interest.

29

ASSET QUALITY HIGHLIGHTS: KEY PORTFOLIOS — COMMERCIAL
Unaudited

C&I Portfolio: $7.4 Billion (38% of Total Loans)

- Impacted by deterioration in overall economic conditions

- Diverse and granular portfolio

- Mostly relationship customers in TN and regional middle market lending efforts

Homebuilder Portfolio: $986 Million (5% of Total Loans)

- Loans to residential builders and developers

- Performance under pressure from housing market (oversupply & lack of mortgage availability)

- Most severe market conditions in Florida, California, Virginia/DC , Arizona, Maryland and Colorado

- Condominium construction balances small ($140.2 million) but individual commitments tend to be larger

- In early 2008 ceased originations for National CRE lending; National balances have decreased by 58% since Mar.08

Top 10 States
	% OS			% NPL
TN		24.30	%		16.09	%
FL		9.84	%		64.59	%
WA		9.57	%		31.23	%
NC		6.66	%		24.75	%
CA		6.60	%		47.25	%
VA		4.78	%		46.81	%
TX		4.37	%		13.48	%
CO		3.83	%		46.06	%
MD		3.56	%		46.09	%
AZ		3.40	%		57.62	%

As of 6/30/09

Income CRE Portfolio: $1.9 Billion (10% of Total Loans)

- Traditional commercial real estate construction and mini-permanent loans

- Three-Fourths managed by Regional Banking segment (approx)

- Less than 17% in national CRE business: wind-down portfolio (approx)

- Performance suffering from poor general economic conditions (increasing vacancy and rate concessions) and decreased availability of financing (increasing cap rates)

Top 10 States
	% OS			% NPL
TN		45.04	%		3.69	%
NC		7.95	%		20.81	%
FL		7.73	%		30.80	%
GA		6.26	%		0.44	%
TX		3.77	%		0.00	%
MS		3.35	%		0.46	%
WA		3.22	%		0.00	%
SC		3.18	%		0.00	%
AZ		2.60	%		38.12	%
CA		1.91	%		45.30	%

As of 6/30/09

30

ASSET QUALITY HIGHLIGHTS: KEY PORTFOLIOS — CONSUMER
Unaudited

Consumer Real Estate (primarily Home Equity) Portfolio: $7.4 Billion (38% of Total Loans)

- Performance continues to show moderate deterioration in national portfolio, stable in TN

- Geographically diverse

- Top States (TN=34%, CA = 15%, VA = 4%, WA = 4%, MD = 3%, FL = 3%, GA = 3%)

- Strong borrower quality

- 735 avg. portfolio origination FICO; 731 avg. portfolio FICO (refreshed)

- Good collateral position

- High LTV loans managed through whole loan insurance

- 28% 1st lien and 72% second lien

- 87% of uninsured portfolio <90 CLTV

- 13% of uninsured portfolio is HLTV, 65% of which (or 8.6%) have FICO >700

- No longer originating loans >89.9% CLTV

- Good borrower capacity (37% avg. DTI)

- Primarily retail-sourced (86% retail)

- Mix of older vintage loans

- 50% originated prior to 2006

- Broker origination in 2009 solely related to existing portfolio refinance /

modification activity

Top 10 States
	% OS			Del. %			C/O %
TN		34	%		1.31	%		.81	%
CA		15	%		2.69	%		5.13	%
VA		4	%		1.45	%		4.77	%
WA		4	%		2.38	%		1.81	%
MD		3	%		2.08	%		2.65	%
FL		3	%		4.14	%		6.31	%
GA		3	%		1.80	%		2.53	%
AZ		3	%		4.17	%		12.59	%
PA		2	%		1.77	%		1.61	%
NJ		2	%		1.96	%		1.78	%

As of 6/30/09

Retail vs. Wholesale Originations
	% OS			Del. %			C/O %
Retail		85.72	%		1.81	%		2.49	%
Wholesale		11.99	%		4.44	%		8.06	%
Other		2.28	%		2.23	%		1.07	%

As of 6/30/09

Portfolio Breakdown by LTV and FICO
	<=80%			80% - 90%			>90%
>=740		32.3	%		14.3	%		4.9	%
720-739		7.1	%		4.6	%		1.9	%
700-719		7.1	%		4.3	%		1.8	%
660-699		7.9	%		4.0	%		3.0	%
620-659		2.5	%		1.4	%		1.2	%
<620		.8	%		.3	%		.4	%
* excludes whole loan insurance

As of 6/30/09

	Balance			Origination Characteristics														QTD			YTD
Vintage	%			CLTV			FICO		% Broker *			% TN			% 1st lien			NCO’s %			NCO’s %
pre-2002		6	%		77	%		717		16	%		49	%		36	%		1.42	%		1.72	%
2003		10	%		74	%		731		13	%		36	%		44	%		1.34	%		1.33	%
2004		13	%		77	%		728		23	%		27	%		30	%		1.79	%		2.05	%
2005		21	%		80	%		732		20	%		20	%		17	%		4.29	%		3.77	%
2006		17	%		77	%		735		6	%		25	%		18	%		4.35	%		4.02	%
2007		20	%		79	%		741		15	%		27	%		19	%		4.05	%		3.34	%
2008		10	%		71	%		749		10	%		70	%		53	%		2.29	%		2.05	%
2009		4	%		71	%		755		2	%		83	%		65	%		.00	%		.00	%
Total		100	%		77	%		735		14	%		34	%		28	%		3.01	%		2.69	%
* Correspondent and Wholesale

One-Time Close (OTC) Portfolio: $558 Million (3% of Total Loans)

-	Construction-to-perm loans with short duration
-	Performance under pressure from housing market, borrower stress
	and lack of product salability in the secondary market
-	Actively identifying and remediating problem accounts

- In early 2008 ceased originations for OTC lending; balances have
decreased by 69% since Mar.08

Top 10 States
	% OS			% NPL
CA		32	%		58	%
UT		11	%		90	%
TX		7	%		54	%
WA		7	%		65	%
ID		7	%		91	%
FL		8	%		98	%
OR		4	%		59	%
AZ		4	%		92	%
NC		2	%		77	%
VA		2	%		51	%

As of 6/30/09

31

ASSET QUALITY: PROCESS HIGHLIGHTS

Product Current Process

Commercial Loans (Real Estate / C&I)

Risk Grading

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

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

Watch List Process

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

Classified & Non-Accruals

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

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

Impairment Assessment

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

One-Time Close (OTC) Loans

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

Home Equity Loans & Lines

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

32

GLOSSARY OF TERMS

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

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

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

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

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

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

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

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

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

Asset Quality — Consolidated Key Ratios

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

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

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

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

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

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

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

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

33

NON-GAAP to GAAP RECONCILIATION
Quarterly, Unaudited

(Millions)	2Q09			1Q09			4Q08			3Q08			2Q08
Tangible Common Equity (Non-GAAP)
(A) Total equity (GAAP)	$	3,394.0		$	3,507.7		$	3,574.6		$	2,872.9		$	2,992.7
Less: Preferred stock capital surplus — CPP		790.6			786.6			785.7			—			—
Less: Noncontrolling interest (a)		295.2			295.2			295.2			295.3			295.3
(B) Total common equity		2,308.2			2,425.9			2,493.7			2,577.6			2,697.4
Less: Intangible assets (GAAP) (e)		234.3			235.9			237.5			239.3			241.0
(C) Tangible common equity (Non-GAAP)		2,073.9			2,190.0			2,256.2			2,338.3			2,456.4
Less: Unrealized gains on AFS securities, net of tax		59.2			57.4			42.3			17.8			15.5
(D) Adjusted tangible common equity (Non-GAAP) (b)		2,014.7			2,132.6			2,213.9			2,320.5			2,440.9
Tangible Assets (Non-GAAP)
(E) Total assets (GAAP)		28,758.9			31,208.0			31,022.0			32,804.4			35,550.0
Less: Intangible assets (GAAP) (e)		234.3			235.9			237.5			239.3			241.0
(F) Tangible assets (Non-GAAP)		28,524.6			30,972.1			30,784.5			32,565.1			35,309.0
Period-end Shares Outstanding
(G) Period-end shares outstanding		215.2			214.9			214.1			214.1			214.3
Tier 1 Common (Non-GAAP)
(H) Tier 1 capital (c)	$	3,596.3		$	3,709.0		$	3,784.2		$	2,934.0		$	3,034.7
Less: Preferred stock capital surplus — CPP		790.6			786.6			782.7			—			—
Less: Noncontrolling interest (a)		295.2			295.2			295.2			295.3			295.3
Less: Trust preferred (d)		300.0			300.0			300.0			300.0			300.0
(I) Tier 1 common (Non-GAAP)		2,210.5			2,327.2			2,406.3			2,338.7			2,439.4
Risk Weighted Assets
(J) Risk weighted assets (c)	$	23,327.7		$	24,771.8		$	25,185.4		$	26,427.3		$	28,884.7
Ratios
(C)/(F) Tangible common equity to tangible assets (TCE/TA) (Non-GAAP)		7.27	%		7.07	%		7.34	%		7.18	%		6.96	%
(A)/(E) Total equity to total assets (GAAP)		11.80	%		11.24	%		11.52	%		8.76	%		8.42	%
(C)/(G) Tangible book value per common share (Non-GAAP)	$	9.64		$	10.19		$	10.55		$	10.92		$	11.46
(B)/(G) Book value per common share (GAAP)	$	10.73		$	11.29		$	11.66		$	12.04		$	12.59
(I)/(J) Tier 1 common ratio (Non-GAAP)		9.48	%		9.40	%		9.56	%		8.85	%		8.45	%
(H)/(E) Tier 1 capital to total assets (GAAP)		12.50	%		11.88	%		12.20	%		8.94	%		8.54	%
(D)/(J) Adjusted tangible common equity to risk weighted assets (TCE/RWA) (Non-GAAP) (b)		8.64	%		8.61	%		8.80	%		8.78	%		8.45	%
(A)/(E) Total equity to total assets (GAAP)		11.80	%		11.24	%		11.52	%		8.76	%		8.42	%

(a)	Included in total equity on the consolidated balance sheet.
(b)	See Glossary of Terms for definition of ratio.
(c)	Current quarter is an estimate.
(d)	Included in term borrowings on the consolidated balance sheet.
(e)	Includes goodwill and other intangible assets, net of amortization.

34

First Horizon National Corporation Second Quarter 2009 Earnings July 17, 2009

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. 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 information. 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. First Horizon disclaims any obligation to update any of the forward-looking statements that are made from time to time to reflect future events or developments.

Further Strategic Progress in Second Quarter 2009 Attractive Growth Opportunities Industry-Leading Strengths NPAs declined $19mm or 2% linked-quarter Charge-offs in-line with expectations at $239mm 90-day+ delinquencies down $68mm linked-quarter Core deposits up ~$200mm or 2% linked-quarter Loans to core deposits ratio improved 9 points to 140% Retired $700mm of maturing debt in 2Q09 Ability To Execute Tier 1 ratio improved to 15.4% in 2Q09 Tier 1 Common up to 9.5%, TCE/TA to 7.3% TCE + Reserves / RWA improved to 13.0% Consolidated NIM improved 16bps to 3.05% Core deposit growth of 1% linked-quarter JD Power Ranking improved to #2 in Southeast (leader in Tennessee) Improved operating leverage; efficiency focus Proactive on Asset Quality Strong Capital Position1 Solid Liquidity Position Strong Regional Banking Franchise Focused Capital Markets Business 3rd consecutive quarter of strong revenues with $215mm in 2Q09 Strong fixed income distribution platform with diverse product offering More than 6,000 depositories and total return clients Positioned to benefit from current market conditions 1Current quarter is estimate; Tier 1 Common, TCE, & TA are non-GAAP numbers, and a reconciliation is provided in the appendix. Total assets declined to $28.8B Reduced national lending portfolios by $0.5B Reduced mortgage servicing portfolio by ~$20B through run-off and bulk sale Reducing Balance Sheet Risk

Capital Analysis Demonstrates Balance Sheet Strength Loan Loss Assumptions Assumptions Capital Ratios Illustrates expected strong 2010 year-end capital ratios based on severe economic conditions Pre-tax, pre-provision income at current broker estimates2 Loan losses at reported SCAP median rates by category under more adverse scenario $2.5B asset reduction (wind-down), assumes RWA decline by $1.8B from 4Q08 Ending ALLL at 2.00% of loans Tax rate of 35% Tier 1 Common Roll-Forward 4Q08 Loan Losses PTPP Earnings Reserve Release B/S Shrinkage Dividends / Warrant 4Q10 1Source: Federal Reserve SCAP: Overview of Results. 2PTPP assumptions based on ThomsonOne broker estimates; average of BAC-ML, FBR, Credit Suisse, FIG, Fox-Pitt, Sterne Agee, Stifel Nicolaus, SunTrust RH, & Wunderlich as of 7/9/09. FHN does not provide earnings estimates & has not endorsed these or any other broker estimates. 3Current quarter is an estimate; Tier 1 Common & TCE are non-GAAP numbers, and a reconciliation is provided in the appendix. Hypothetical Illustration 3

Financial Highlights: Second Quarter 2009 Earnings per share of $(0.58) Net loss available to common shareholders of $(123) million $(15) million impact of TARP CPP preferred $(13)million pre-tax impact of FDIC special assessment fee Loan loss reserve increased by $20 million to 4.91% of total loans NPAs down 2% linked-quarter Capital ratios remain strong Tier I at 15.4%2 TCE/TA at 7.3%2 Tier 1 Common at 9.5%2 1Pre-tax, pre-provision is a non-GAAP number and is pre-tax income excluding provision; a reconciliation is provided in the appendix. 2Current quarter is estimate; Tier 1 Common, TCE, & TA are non-GAAP numbers, and a reconciliation is provided in the appendix. Pre-tax, pre-provision income1 of $79 million Core businesses drove $131 million National businesses negatively impacted by hedging and proactive actions on repurchase, foreclosure Net interest margin stabilizing at 3.05%, up 16bps linked-quarter Regional banking NIM up 21bps to 4.71% Fee income as a percent of total revenue at 60% Continued strong fixed income sales Efficiency ratio at 84% Results Key Drivers

Asset Quality

3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 NPLs 208.3 307.1 537.3 770 900 1054.4 1132.7 1126.96 ORE 60 85.3 83.7 106.1 115.5 103.6 119 106.12 Asset Quality Overview NPAs declined 2% linked-quarter, first downtick since 3Q07 Net charge-offs totaled $239 million, annualized 4.77% of loans1 Reserves increased $20 million to $961 million, 4.91% of loans1 Reserve increases in C&I, Income CRE, and Perm Mortgage Partially offset by reserve decrease in Home Equity, OTC 1Asset quality ratios as of 2Q09 NPLs at 6/30/09 OTC & ResCRE 0.65 Remaining Market 0.35 OTC & National CRE 65% Other 35% 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 Provision 43.352 156.519 240 220 340 270 Net Charge-Offs 31.384 50.793 99.138 127.672 154.693 191.2 208.3 239.4 Net Charge-Offs -31.384 -50.793 -99.138 -127.672 -154.693 -195 Reserve 245.163 353.067 494.989 597.452 779.565 858 Reserve Increase 11.968 105.726 140.862 91.9 185.307 88.8 91.7 20.6 Reserve % of Loans (right axis) 0.0108 0.0155 0.022 0.0259 0.0352 0.0399 0.0457 0.0491 Reserves Strong, Growth Slowing Non-Performing Assets Flattening 43% 16% 14% 8% (2)%

NPAs declined 2% linked-quarter Problem loan outflows increased while inflows decreased Reduced ORE inventory partially via small bulk sales Individual sales at approximate carrying values Losses taken on bulk sales to move aging inventory Active re-valuation of inventory resulted in increased foreclosure expense Problem Loans - Inflows Declining, Resolutions Rising ORE: Proactive Disposition Efforts3 1Includes Commercial & One-Time Close Portfolios only 2Commercial loan grade migration reflects pass to non-pass 3ORE excludes foreclosed real estate from GNMA loans. Includes fair value adjustments NPLs: Slower Inflows, More Resolutions1 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 758 758 655 1144 640 472 304.994 10161 10161 10495 9716 10113 9960 9557 0 0 8 24 0 11 58 Commercial Loan Downgrades2

C&I Portfolio Performance Bank Exposure1 2Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 30+ Delq. 0.52 0.005 0.0093 0.0146 0.0115 0.0053 0.0153 0.0082 Net Charge-Offs (Ann.) 0.74 0.002 0.0083 0.0084 0.0164 0.0221 0.0155 0.0143 NPLs 0.0064 0.012 0.0105 0.0103 0.0135 0.0152 Largely TN portfolio, diversified by industry Balances of $7.4B at 2Q09 NCOs of $27mm at 2Q09 Slightly below 1Q09's charge-offs of $30mm as expected Expect modest increase in quarterly rate throughout remainder of 2009 C&I reserves of 3.4% at 6/30/09 Ongoing proactive reviews of portfolio in order to appropriately manage the portfolio in a stressed environment TRUPs and other bank related balances of ~$800mm at 2Q09 39 bank TRUPs with $8mm average size Solid banks overall: avg. Tier 1 ratio2 = 10.8%, avg. Leverage ratio2 = 8.8% 56% are TARP CPP participants2 3 elected interest deferral to date ($22.5mm total) Increased provision accordingly in 2Q09 Other BHC holding loans Graded individually quarterly with reserves adjusted as profile requires C&I Insurance TRUPs Bank TRUPs Other Bank Related Balances 7676 164.3 305.4 300.6 Total C&I $7.4B Insurance TRUPS $0.2B Bank TRUPS $0.3B Other Bank related balances $0.3B 1Outstanding balances as of 6/30/09 2Measures are weighted averages by funded balances and capital ratios are as of 6/30/09

Income CRE Portfolio Traditional commercial real estate construction and mini-permanent loans Balances of ~$2 billion at 2Q09 Three-fourths managed in regional banking Market conditions impacting portfolio performance Recession increasing vacancy and rental rates (NOI) Lack of real estate financing in the market increasing cap rates Reserves of 5.8% at 6/30/09 Retail Multi-Family Office Land Other Industrial Hospitality Income CRE by balances 0.238 0.186 0.144 0.139 0.117 0.103 0.074 Portfolio Characteristics Performance Collateral Type1 Loan Type1 2Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 30+ Delq. 0.52 0.0196 0.0057 0.0143 0.0347 0.0242 0.0423 0.0282 Net Charge-Offs (ann.) 0.74 0.0013 0.0194 0.0063 0.0024 0.0273 0.0336 0.064 NPLs 0.0354 0.0372 0.0502 0.063 0.0867 1As of 6/30/09 Construction Land Mini-Perm/Non-Construction Property Type 0.213 0.139 0.648 Construction 21% Land 14%% Mini-Perm/ Construction 65% NPLs by Product Type1

Home Equity Portfolio 30+ Delinquency: National vs. Regional1 Net-Charge Offs2 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 Regional Banking 0.52 0.004 0.0064 0.0076 0.015 0.0081 0.0123 0.0145 0.0136 National Specialty 0.74 0.0034 0.0062 0.0102 0.0191 0.017 0.021 0.0288 0.0394 Vintage Mix 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 Period End Balance 5385.04 5263.97 5140.65 5044.12 4856.63 4686 Constant Pre-Payment Rate (right axis) 0.16 0.15 0.11 0.09 0.15 0.17 National Portfolio Run-Off 30 Day Del. 1/8/2008 2/8/2008 3/8/2008 4/8/2008 5/8/2008 6/8/2008 7/8/2008 8/8/2008 9/8/2008 10/8/2008 11/8/2008 12/8/2008 1/1/2009 2/1/2009 3/1/2009 4/9/2009 5/9/2009 6/9/2009 Regional Banking 0.0154 0.016 0.0164 0.0145 0.0131 0.0112 0.011 0.0121 0.0123 0.0127 0.0139 0.0133 0.0125 0.0132 0.0125 0.0124 0.0129 0.0128 National Specialty 0.0149 0.0149 0.0145 0.0137 0.0134 0.0131 0.0134 0.0147 0.016 0.0175 0.0214 0.0229 0.0233 0.0241 0.0241 0.0243 0.0249 0.0262 Industry 0.0328 0.0349 0.0347 0.0356 0.0368 0.0382 0.0394 0.0417 0.0431 0.0442 0.0486 Industry = 13.20% 1Source: McDash industry data as of April 2009. FHN data excludes FHB. 2Net Charge-Offs are annualized

National Wind-Down Portfolios: OTC, Perm Mortgage, & Res CRE 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 OTC Commitments 3.4 3 2.6 2 1.5 1.3 1 0.776 OTC Balances 2.2 2 1.8 1.5 1.2 0.981 0.773 0.558 Unfunded Commitments 1 0.8 0.5 0.3 0.3 0.23 0.218 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 Nat'l Res CRE Balances 1.432 1.4 1.1 0.927 0.78 0.682 0.579 Nat'l Res CRE Commitments 2.3 2 1.6 1.3 1 0.99 0.68 NPLs as % of portfolio 0.078 0.1207 0.2202 0.3203 0.4097 0.4891 0.521 30+day Del. 0.0428 0.0662 0.0505 0.0319 0.1247 0.0487 79% One-Time Close Permanent Mortgage1 National portfolios on track for wind-down OTC balances down 28% to $558mm from 1Q09 Completed loans paid off, modified to perm mortgage, or managed as problem assets OTC reserves of 29.5% at 6/30/09 Perm portfolio is heterogeneous; performance varies by pool Delinquency and severity driving higher reserves and losses Reserve growth also from available LOCOM depletion Perm mortgage reserves of 8.9% at 2Q09 Res CRE national balances down 15% to $579mm at 2Q09 Res CRE national reserves of 9.8% at 6/30/09 National Res CRE 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 Perm Mortgage Balances 647 1004 1080 1127 1109 1112 30+Del. 0.0636 0.0738 0.0694 0.1011 0.0944 Charge-Offs Ann. 0.663175 0.0115 0.0022 0.0057 0.0347 0.0797 1Perm Mortgage reflects consolidated asset quality trends 70%

First Half 2009 Trends generally consistent with previously communicated expectations Res CRE charge-offs lower than expected, C&I and Income CRE reserves higher than expected 2Q09: Total charge-offs as expected; reserve growth driven by C&I, Income CRE, Perm Mortgage Home Equity delinquency remains relatively stable Commercial grade migration continues to slow Second Half 2009 Expectations generally consistent with prior views Wind-down of national specialty portfolio should drive sequentially lower charge-offs and reserves Credit Expectations and Risks Summary 1Other includes permanent mortgage, other consumer, and credit card

Financial Results

Consolidated Financial Results Pre-tax, pre-provision income1 of $79mm NII flat linked-quarter Improved NIM offset smaller balance sheet Fees down $115mm linked-quarter Smaller mortgage hedging gains ($7mm compared to $85mm in 1Q09) Continued strong fixed income sales Expenses down to $412mm in 2Q09 Impacted by significant items related to FDIC insurance, national wind-down efforts (repurchase, foreclosure) Positive impacts from lower incentives in capital markets and efficiency efforts Provision down $40mm linked-quarter Exceeded $239mm in net charge-offs ($20mm reserve build) Period-end shares increased to 214mm2 Prior quarters restated to reflect stock dividend Numbers may not add to total due to rounding. Consolidated financials not impacted by revisions to segment methodologies in 2Q09 1Pre-tax, pre-provision is a non-GAAP number and is pre-tax income excluding provision; a reconciliation is provided in the appendix. 2At 6/30/09

Regional Banking 1Q09 Capital Markets Corporate Mortgage National Specialty Significant Impacts in Pre-Tax, Pre-Provision Earnings Pre-Tax, Pre-Provision Earnings1 2Q09 Drivers / Impacts 2Q09 Revenue 2Q09 Expense Repurchase reserves: $(29)mm vs. $(12)mm 1Q09 PMI reinsurance: $(8)mm vs. $(14)mm 1Q09 Foreclosures: $(5)mm vs. $(1)mm 1Q09 Consumer lending repurchases: $(12)mm vs. $(10)mm in 1Q09 $31 $38 $89 $100 $(12) $(7) $85 $(33) $(5) $(19) $207 $(168) $215 $(114) $18 $(25) $30 $(63) $22 $(41) Core Business (sub-total) Total $108 $131 $439 $(308) $187 $79 $491 $(412) FDIC special assessment, all segments: $(13)mm 2Q09 Reduced rate of incentive provisioning, lower production Foreclosures: $(11)mm vs. $(6)mm 1Q09 Foreclosures: $(5)mm vs. $(1)mm 1Q09 Lower, though strong, fixed income sales Smaller hedging gains: $7mm vs. $85mm 1Q09 Warehouse valuation: $(10)mm vs. $8mm 1Q09 NIM improvement, seasonal fee increase Numbers are in millions of dollars and may not add to totals due to rounding. 1Pre-tax, pre-provision is a non-GAAP number and is pre-tax income excluding provision; a reconciliation is provided in the appendix. Note: Segment financials reflect revised cost allocation and funds transfer pricing methodologies.

Reduced balance sheet risk further in 2Q09 National portfolios continuing to wind-down; run-off rate increased in 2Q09 Soft loan demand in regional banking MSR bulk sale Total assets expected to shrink another $0.5-1.5B in 2H09 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 Regional Banking 10 9.7 10.3 10.1 10.4 10.5 Capital Markets 0.214 0.374 0.374 Corporate 1.2 1.6 1.3 1.5 1 1.5 Mortgage 1.4 0.7 1.8 0.9 1.3 1 National Specialty 0.2 0.2 0.3 0.1 0.1 0.117 Assets Core Deposits by Segment (P/E) Reducing Balance Sheet Risk, Growing Deposits $12.9 $13.2 $13.5 Numbers may not add to total due to rounding. 1Excludes corporate segment loans. Includes divestiture balances. Mortgage I/O assets included in Trading Securities. Mortgage hedge assets included in Other. 2Includes excess Fed balances of ~$500mm at 6/30/09. Core deposits up 5% since 4Q08 Regional banking core deposits increased 4% from 4Q08 to 2Q09, up 1% linked-quarter Escrow balances from mortgage business declining as servicing portfolio winds-down

Improved Net Interest Margin 2Q09 NIM improved 16bps to 3.05% Widening spreads on new loans with improved pricing Continued core deposit growth Successful step-down of 4Q08 promotional deposit rates Reduced NPA inflows, fewer interest reversals NIM expected to expand modestly over remainder of 2009 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 Consolidated NIM 0.0284 0.0279 0.0287 0.0277 0.0281 0.0301 0.0301 0.0296 0.0289 0.0305 Consolidated Net Interest Margin Yields and Rates 2Q08 3Q08 4Q08 1Q09 2Q09 Loss of Yield and Int Reversals 16 20 23 17 16 Adverse Impact of Non-Accruals 2Q08 3Q08 4Q08 1Q09 2Q09 Loan Yield 0.0529 0.0516 0.0478 0.0397 0.0392 Deposit Cost 0.0244 0.0229 0.0211 0.0177 0.014 Spread (right axis) 285 287 267 220 252 1 1Spread is loan yield minus deposit cost

Fee Income Driven by Core Business 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 Regional Banking 87204 92685 88032 82720 76316 81376 Capital Markets 133905 124633 98514 177285 216690 189588 Corporate 162021 8669 7537 6320 3106 6503 Mortgage/Nat'l Specialty 172707 116445 82878 114502 10183 Fees as % of Revenue 0.63 0.58 0.62 0.67 0.6 Fee Income by Businesses Line Fee Income as a percent of total revenue 60%, down from 67% in 1Q09 Regional Banking fees up 7% linked-quarter Seasonally higher deposit & cash management fees Capital Markets achieved another strong quarter of fixed income sales Strong distribution capabilities Market conditions (volatility, liquidity) Diverse product offering Mortgage & National Specialty fees down 91% Mortgage impacted by less favorable hedging conditions, servicing portfolio wind-down National Specialty impacted by consumer repurchase reserve increase

Continued Focus on Efficiency and Productivity 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 Regional Banking 151 146 154 163 168 168 Capital Markets 116 101 88 115 152 114 Corporate 167 37 41 2 17 25 Mortgage/Nat'l Specialty 179 117 65 80 104 2Q09 expenses down $5mm from 1Q09 Core business expenses down 9% Mortgage & Other expenses impacted by wind-down efforts Repurchase reserve increase, foreclosures Total headcount down 1% linked-quarter Continued emphasis on driving down efficiency ratio through productivity, fixed cost reduction Significant environmental costs in expense run-rate Expenses Foreclosure Repurchases FDIC Risk Mgmt. Other East 21.8 29.1 21.3 5 335 ~$70mm Environmental Costs (Foreclosure, repurchases, credit/risk, FDIC) 2Q09 Expenses

Segment Results: Regional Banking Linked-quarter core deposit growth of 1% Target client wallet share focus Promotion balance retention NIM increased 21bps NIM improved from 1Q09's cyclical low Improving new loan spreads Fees increased $5mm linked-quarter Seasonality, improved environment Expenses unchanged from 1Q09 Continued focus on efficiency and productivity FDIC special assessment Pre-tax, pre-provision income1 of $38mm Lower provision of $51mm, down $47mm from 1Q09 Reduced commercial grade migration Delinquency trends in consumer portfolio stabilized Numbers may not add to total due to rounding. 1Pre-tax, pre-provision is a non-GAAP number and is pre-tax income excluding provision; a reconciliation is provided in the appendix. Note: Segment financials reflect revised cost allocation and funds transfer pricing methodologies.

Segment Results: Capital Markets Pre-tax income of $79 million Another strong quarter of fixed income revenues at $170mm Strong distribution capabilities Market conditions (volatility, liquidity) Diverse product offering Expense decrease of $38mm from 1Q09 Reduced rate of incentive provisioning Lower production Provision increase of $7mm from 1Q09 Continued review of TRUPs and bank- related loans Continued management of balance sheet usage from trading inventory Trading desk procures inventory principally for sale to customers Benefit of strong distribution network Numbers may not add to total due to rounding. 1Pre-tax, pre-provision is a non-GAAP number and is pre-tax income excluding provision; a reconciliation is provided in the appendix. Note: Segment financials reflect revised cost allocation and funds transfer pricing methodologies.

Summary Solid earnings power from core franchises, opportunity for improvement NIM improving off previous quarter low Growing core deposit base in Regional Banking Capital Markets distribution model benefiting from environment Meaningful efficiency and productivity opportunities Flattening NPAs, charge-offs consistent with expectations Reflects proactive approach, wind-down nature of national portfolios Increased clarity on asset quality despite weak economic conditions Significant loan loss reserves Continued de-risking of balance sheet through national wind-down Capital and liquidity remain strong

Driving Long-Term Returns & Profitability

Appendix

Liquidity and Capital Remain Strong 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 1Q09 Peer Median Tangible Common Equity 0.0623 0.0629 0.085 0.0885 0.0896 0.0884 0.0889 0.069 Reserves 0.0113 0.0163 0.0199 0.0288 0.0337 0.038 0.0412 0.017 TCE+Res / RWA 0.0736 0.0791 0.105 0.1173 0.1234 0.1264 0.1301 0.086 Numbers may not add to total due to rounding. 22Q09 ratios estimated at 6/30/09. Peer median includes Top 50 banks at 1Q09. TCE and TA are considered non-GAAP, and a reconciliation is provided in the appendix. 2Excluding Securities Sold Repos, Trading Liabilities, and sub-debt and other collateralized borrowings of $4.0B. TCE + Reserves / RWA1 12.3% 12.6% 13.0% 8.6% Liquidity Wholesale Funding2 - P/E Balances ($B) Capital Ratios1 Continued core deposit growth Asset reductions, deposit growth offsetting debt maturities Retired ~$700mm of debt in 2Q09 Wholesale funding in non-credit sensitive sources

Credit Quality Summary by Portfolio Numbers may not add to total due to rounding Material differences in the performance of the national portfolios vs. the core franchise portfolios Portfolio metrics in the national wind-down portfolios becoming increasingly worse as wind-down enters final stages

Portfolio Characteristics Home Equity - Differentiated Portfolio Characteristics TN 0.34 CA 0.15 VA 0.04 WA 0.04 MD 0.03 FL 0.03 GA 0.03 AZ 0.03 PA 0.02 NJ 0.02 Other 0.37 30+ Delinquency: Key Drivers FICO Score Channel Lien Position Geographic Distribution % of portfolio 86% 14% 1st Lien 2nd Lien Lien Position 0.0134 0.0244 % of portfolio 28% 72% % of portfolio >=740 720-739 700-719 660-699 <660 FICO Score (Refreshed) 0.0102 0.0259 0.0323 0.0297 0.0468 50% 14% 13% 15% 9% Retail Wholesale/Other Channel Mix 0.0181 0.0409 First Second Total Balance $2.1B $5.3B $7.3B Original FICO 734 736 735 Original CLTV 70% 80% 78% Full Doc 78% 69% 71% Owner Occupied 85% 96% 93% HELOCs $0.8B $3.6B $4.4B Weighted Avg. HELOC Utilization 50% 59% 57%

Appraised Value Pre-Charge Down Balance Cumulative Charge Down Book Balance (6/30/09) East 836.8 785.1 522.2 522.2 262.9 Problem Loans Written Down to Realizable Values, Reserves Largely for Performing Credits FAS 114 Charge-Downs1 Commercial Loan Reserves 837 785 522 34% write-down (263) 1Approximation based on most recent appraised value, which can be impacted by changing market conditions and asset disposition. Generally, classified non-accrual loans over $1mm are assessed for impairment in accordance with FAS-114 Commercial loans typically charged-down to net realizable value rather than holding reserves

Mortgage Segment Pre-Tax, Pre-Provision Numbers may not add to total due to rounding. 1Pre-tax, pre-provision is a non-GAAP number and is pre-tax income excluding provision; a reconciliation is provided in the appendix. Note: Segment financials reflect revised cost allocation and funds transfer pricing methodologies.

Reconciliation to GAAP Financials Slides 3, 5, 15, 16, 21, and 22 use non-GAAP information of pre-tax, pre-provision earnings. That information is not presented according to generally accepted accounting principles (GAAP), and is reconciled to GAAP information below.

Reconciliation to GAAP Financials Slides 3, 4, 5, and 26 use non-GAAP information of TCE, TA, and Tier 1 Common. That information is not presented according to generally accepted accounting principles (GAAP), and is reconciled to GAAP information below. 1Current quarter is an estimate 2Includes goodwill and other intangible assets, net of amortization 2 2