FIRST QUARTER 2007

FINANCIAL SUPPLEMENT

The following supplement is provided to assist in your financial analysis.

If you need further information, please contact:

Dave Miller, Investor Relations

901-523-4162

dwmiller@firsthorizon.com

 

First Horizon National Corporation

1Q 2007 Financial Supplement

Dear Investor,

In conjunction with the release of First Horizon National Corporation’s first quarter results for 2007, we have prepared this financial supplement to assist investors in understanding First Horizon National Corporation’s financial results.

This supplement compares current period results to earnings and other financial information from the previous four quarters.

Please feel free to call if you have any additional questions.

Regards,

Dave Miller, Investor Relations

901-523-4162

dwmiller@firsthorizon.com

CONSOLIDATED SUMMARY
Quarterly, Unaudited
(Thousands)	1Q07		4Q06		3Q06			2Q06		1Q06
Net interest income	$237,419		$245,997		$251,621			$253,598		$245,721
Noninterest income	272,915		313,342		309,170			332,119		277,891
Security gain/(loss)	10,273		3,002		8,757			2,893		(80,281	)
Total revenue	520,607		562,341		569,548			588,610		443,331
Noninterest expense	403,012		431,630		452,899			423,011		435,081
Provision	28,486		22,983		23,694			18,653		17,799
Pretax income/(loss)	89,109		107,728		92,955			146,946		(9,549	)
Provision/(benefit) for income taxes	18,802		31,448		25,776			43,013		(12,959	)
Income from continuing operations	70,307		76,280		67,179			103,933		3,410
Income/(loss) from discontinued operations, net of tax	240		187		(69	)		376		210,273
Income before cumulative effect	70,547		76,467		67,110			104,309		213,683
Cumulative effect of changes in accounting
principle, net of tax	-		-		-			-		1,345
Net income	$70,547		$ 76,467		$67,110			$104,309		$215,028
Tax rate	21.1	%	29.2	%	27.7	%		29.3	%	NM
Efficiency ratio	77.4	%	76.8	%	79.5	%		71.9	%	98.1	%
NM - Not meaningful

1

SELECTED FINANCIAL DATA
Quarterly, Unaudited
(Dollars in thousands, except per share data)		1Q07			4Q06			3Q06			2Q06			1Q06
Income from continuing operations		$70,307			$76,280			$67,179			$103,933			$3,410
Income/(loss) from discontinued operations,
net of tax		240			187			(69	)		376			210,273
Cumulative effect of changes in accounting
principle, net of tax		-			-			-			-			1,345
Net income		70,547			76,467			67,110			104,309			215,028
Common Stock Data
Diluted earnings per common share:
Diluted EPS from continuing operations		$.55			$.60			$.53			$.82			$.03
Diluted EPS before cumulative effect of
changes in accounting principle		.55			.60			.53			.82			1.66
Diluted EPS		.55			.60			.53			.82			1.67
Diluted shares		128,704			127,784			127,523			127,280			129,100
Period-end shares outstanding		126,424			124,866			124,467			123,947			123,230
Dividends declared per share		$.45			$.45			$.45			$.45			$.45
Selected Average Balances
Total assets	$	38,647,044		$	39,327,781		$	39,519,765		$	38,494,898		$	37,689,523
Total loans, net of unearned income		22,007,211			21,894,032			21,808,787			21,445,153			20,853,947
Investment securities		3,817,015			3,952,007			3,805,160			3,008,310			3,026,429
Earning assets		33,750,530			34,313,781			34,627,512			33,946,387			33,142,044
Deposits		21,380,760			23,155,050			22,926,483			21,981,445			22,939,767
Total long-term debt		6,388,955			5,718,968			5,538,323			5,160,610			3,805,307
Shareholders' equity		2,463,903			2,510,752			2,442,030			2,401,428			2,335,512
Selected Period-End Balances
Total assets	$	38,828,766		$	37,918,259		$	40,076,183		$	37,469,234		$	37,300,975
Total loans, net of unearned income		22,268,190			22,104,905			21,955,030			21,717,264			21,211,946
Investment securities		3,276,312			3,890,420			3,983,049			3,108,569			2,944,826
Earning assets		32,682,577			32,320,221			33,259,328			31,879,716			31,617,338
Deposits		22,491,951			20,213,232			25,284,541			21,693,442			21,517,047
Total long-term debt		6,528,015			5,836,360			5,487,188			5,606,294			4,599,339
Shareholders' equity		2,514,676			2,462,390			2,510,524			2,442,193			2,399,608
Selected Ratios and Other
Return on average assets		.74	%		.77	%		.67	%		1.09	%		2.31	%
Return on average equity		11.6			12.1			10.9			17.4			37.3
FTE employees		12,018			12,131			12,324			12,413			13,053

2

STATEMENTS OF INCOME
Quarterly, Unaudited
(Thousands)	1Q07	4Q06	3Q06			2Q06	1Q06
Interest income	$583,185	$604,562	$612,598			$578,582	$533,369
Less interest expense	345,766	358,565	360,977			324,984	287,648
Net interest income	237,419	245,997	251,621			253,598	245,721
Provision for loan losses	28,486	22,983	23,694			18,653	17,799
Net interest income after
provision for loan losses	208,933	223,014	227,927			234,945	227,922
Noninterest income:
Capital markets	87,113	92,809	95,215			102,165	92,858
Mortgage banking	73,097	87,524	85,935			116,472	80,682
Deposit transactions
and cash management	39,358	43,317	44,503			42,756	38,023
Revenue from loan sales and securitizations	9,663	16,276	11,830			12,212	11,357
Insurance commissions	9,789	8,951	10,534			12,461	14,686
Trust services and investment
management	9,688	10,424	9,609			10,824	10,657
Securities gains/(losses), net	10,273	3,002	8,757			2,893	(80,281	)
Other	44,207	54,041	51,544			35,229	29,628
Total noninterest income	283,188	316,344	317,927			335,012	197,610
Adjusted gross income after
provision for loan losses	492,121	539,358	545,854			569,957	425,532
Noninterest expense:
Employee compensation,
incentives and benefits	246,343	257,397	260,351			245,796	260,141
Occupancy	28,784	29,298	29,745			27,525	30,102
Equipment rentals, depreciation
and maintenance	17,613	17,867	17,893			17,858	20,264
Operations services	17,821	17,550	17,976			17,075	17,440
Communications and courier	11,540	11,978	12,950			13,409	14,912
Amortization of intangible assets	2,825	2,460	3,233			2,881	2,888
Other	78,086	95,080	110,751			98,467	89,334
Total noninterest expense	403,012	431,630	452,899			423,011	435,081
Pretax income/(loss)	89,109	107,728	92,955			146,946	(9,549	)
Provision/(benefit) for income taxes	18,802	31,448	25,776			43,013	(12,959	)
Income from continuing operations	70,307	76,280	67,179			103,933	3,410
Income/(loss) from discontinued operations,
net of tax	240	187	(69	)		376	210,273
Income before cumulative effect	70,547	76,467	67,110			104,309	213,683
Cumulative effect of changes in accounting
principle, net of tax	-	-	-			-	1,345
Net income	$70,547	$76,467	$67,110			$104,309	$215,028

3

OTHER INCOME AND OTHER EXPENSE
Quarterly, Unaudited
(Thousands)	1Q07	4Q06	3Q06			2Q06		1Q06
All other income:
Brokerage management fees and
commissions	$9,631	$9,434	$8,545			$10,243		$8,960
Bankcard income	6,005	6,386	6,441			6,362		6,916
Bank owned life insurance	5,965	6,054	5,216			3,928		3,866
Remittance processing	3,500	3,576	3,525			3,642		3,994
Deferred compensation	1,265	8,188	6,948			(5,939	)	5,450
Other service charges	3,681	3,556	3,622			3,764		3,619
Letter of credit	1,620	1,712	1,659			1,885		2,015
ATM interchange fees	1,917	1,801	1,809			1,799		1,682
Reinsurance fees	1,784	2,075	1,595			1,571		1,551
Check clearing fees	1,212	1,386	1,593			1,679		1,727
Electronic banking fees	1,655	1,505	1,485			1,502		1,483
Federal flood certifications	1,123	1,121	1,214			1,361		1,300
Other	4,849	7,247	7,892			3,432		(12,935	)
Total	$44,207	$54,041	$51,544			$35,229		$29,628
All other expense:
Advertising and public relations	$10,262	$11,162	$13,272			$10,998		$11,995
Legal and professional fees	11,591	12,046	11,071			11,600		8,295
Computer software	9,186	8,608	8,959			8,827		7,987
Travel and entertainment	5,814	8,518	8,164			8,652		6,972
Contract employment	5,022	5,836	6,955			7,094		7,535
Distributions on preferred stock
of subsidiary	4,658	4,769	4,874			4,453		4,050
Low income housing expense	4,752	6,056	3,968			3,282		3,721
Supplies	3,601	3,177	3,961			4,260		3,674
Loan closing costs	3,024	2,297	3,835			3,729		2,234
Customer relations	1,942	2,287	2,123			2,177		2,101
Other insurance and taxes	2,403	2,265	2,269			2,209		1,872
Employee training and dues	1,648	1,533	1,658			1,912		1,814
Loan insurance expense	1,247	721	1,784			1,958		2,114
Fed services fees	1,445	1,445	1,613			1,736		1,749
Complimentary check expense	1,291	1,329	1,357			1,357		1,328
Foreclosed real estate	2,292	1,675	(86	)		2,587		208
Bank examination costs	1,130	1,102	1,103			1,081		1,081
Deposit insurance premium	883	765	737			801		895
Other	5,895	19,489	33,134			19,754		19,709
Total	$78,086	$95,080	$110,751			$98,467		$89,334

4

AVERAGE AND PERIOD-END LOANS
Quarterly, Unaudited
(Thousands)	1Q07	4Q06	3Q06		2Q06	1Q06
Average loans:
Loans, net of unearned income:
Commercial:
Commercial, financial and industrial	$7,131,102	$6,903,708	$6,803,461		$6,570,293	$6,415,436
Real estate commercial	1,157,711	1,187,431	1,221,408		1,259,416	1,225,049
Real estate construction	2,843,263	2,741,118	2,575,590		2,380,430	2,197,693
Total commercial loans	11,132,076	10,832,257	10,600,459		10,210,139	9,838,178
Retail:
Real estate residential	7,908,039	8,211,506	8,512,589		8,560,085	8,644,920
Real estate construction	2,045,952	2,081,885	2,065,849		2,028,480	1,961,658
Other retail	153,651	160,366	160,446		162,573	164,567
Credit card receivables	195,209	201,092	201,319		197,706	238,089
Real estate loans pledged against
other collateralized borrowings (a)	572,284	406,926	268,125		286,170	6,535
Total retail loans	10,875,135	11,061,775	11,208,328		11,235,014	11,015,769
Total loans, net of unearned income	$22,007,211	$21,894,032	$21,808,787		$21,445,153	$20,853,947
Period-end loans:
Loans, net of unearned income:
Commercial:
Commercial, financial and industrial	$7,371,873	$7,201,009	$6,945,207		$6,705,925	$6,538,798
Real estate commercial	1,144,086	1,136,590	1,199,084		1,276,278	1,232,021
Real estate construction	2,931,183	2,753,458	2,660,415		2,453,579	2,277,825
Total commercial loans	11,447,142	11,091,057	10,804,706		10,435,782	10,048,644
Retail:
Real estate residential	7,856,197	7,973,313	8,428,652		8,562,733	8,511,300
Real estate construction	2,073,293	2,085,133	2,096,440		2,076,004	2,001,916
Other retail	151,959	161,178	163,134		163,121	161,617
Credit card receivables	187,658	203,307	202,866		202,117	194,908
Real estate loans pledged against
other collateralized borrowings (a)	551,941	590,917	259,232		277,507	293,561
Total retail loans	10,821,048	11,013,848	11,150,324		11,281,482	11,163,302
Total loans, net of unearned income	$22,268,190	$22,104,905	$21,955,030		$21,717,264	$21,211,946
(a) During 2006, FHN sold loans through on-balance sheet securitizations, which were structured as financings for accounting purposes.

5

PERIOD-END STATEMENTS OF CONDITION
Quarterly, Unaudited
(Thousands)	1Q07		4Q06		3Q06		2Q06		1Q06
Assets:
Cash and due from banks	$896,182		$976,619		$903,482		$854,846		$887,539
Federal funds sold and securities
purchased under agreements to resell	1,757,365		1,202,537		1,992,426		1,572,143		1,347,577
Total cash and cash equivalents	2,653,547		2,179,156		2,895,908		2,426,989		2,235,116
Investment in bank time deposits	15,739		18,037		17,798		75,903		25,319
Trading securities	2,443,342		2,230,745		2,512,744		2,183,102		2,508,615
Loans held for sale	2,921,629		2,873,577		2,798,281		3,222,735		3,579,055
Investment Securities	3,276,312		3,890,420		3,983,049		3,108,569		2,944,826
Loans, net of unearned income	22,268,190		22,104,905		21,955,030		21,717,264		21,211,946
Less: Allowance for loan losses	220,806		216,285		206,829		199,835		195,011
Total net loans	22,047,384		21,888,620		21,748,201		21,517,429		21,016,935
Capital markets receivables	1,144,135		732,282		1,027,927		1,058,690		858,072
Mortgage servicing rights, net	1,540,041		1,533,942		1,498,341		1,595,413		1,475,448
Goodwill	275,582		275,582		274,534		281,909		281,475
Other intangible assets, net	61,672		64,530		70,546		75,056		76,666
Premises and equipment, net	445,301		451,708		441,659		431,385		422,346
Real estate acquired by foreclosure	68,613		63,519		65,224		60,577		48,959
Discontinued assets	358		416		939,728		696		56,712
Other assets	1,935,111		1,715,725		1,802,243		1,430,781		1,771,431
Total assets	$38,828,766		$37,918,259		$40,076,183		$37,469,234		$37,300,975
Liabilities and shareholders' equity:
Deposits:
Savings	$3,607,674		$3,354,180		$3,256,680		$3,246,821		$3,218,206
Interest-bearing demand deposits	1,941,422		1,969,700		1,742,276		1,894,707		1,904,235
Time deposits	2,876,257		2,924,050		2,906,424		2,819,597		2,692,046
Certificates of deposit $100,000 and more	8,559,807		6,517,629		11,920,226		8,053,119		8,228,543
Total interest-bearing deposits	16,985,160		14,765,559		19,825,606		16,014,244		16,043,030
Noninterest-bearing deposits	5,506,791		5,447,673		5,458,935		5,679,198		5,474,017
Total deposits	22,491,951		20,213,232		25,284,541		21,693,442		21,517,047
Federal funds purchased and securities
sold under agreements to repurchase	3,173,476		4,961,799		2,416,974		3,387,711		4,337,243
Trading liabilities	678,796		789,957		847,453		929,694		766,479
Commercial paper and other short-term borrowings	819,768		1,258,513		926,292		721,227		749,979
Term borrowings	5,968,789		5,243,961		5,226,772		5,325,014		4,299,539
Other collateralized borrowings	559,226		592,399		260,416		281,280		299,800
Total long-term debt	6,528,015		5,836,360		5,487,188		5,606,294		4,599,339
Capital markets payables	1,088,340		799,489		989,332		1,057,617		941,911
Discontinued liabilities	32,608		6,966		6,977		8,422		233,402
Other liabilities	1,205,859		1,294,283		1,311,628		1,327,360		1,460,693
Total liabilities	36,018,813		35,160,599		37,270,385		34,731,767		34,606,093
Preferred stock of subsidiary	295,277		295,270		295,274		295,274		295,274
Shareholders' equity:
Common stock	78,593		78,041		77,792		77,467		77,019
Capital surplus	341,491		312,521		301,857		282,563		269,564
Undivided profits	2,155,007		2,144,276		2,124,312		2,113,514		2,065,285
Accumulated other comprehensive (loss)/income, net	(60,415	)	(72,448	)	6,563		(31,351	)	(12,260	)
Total shareholders' equity	2,514,676		2,462,390		2,510,524		2,442,193		2,399,608
Total liabilities and shareholders' equity	$38,828,766		$37,918,259		$40,076,183		$37,469,234		$37,300,975

6

CONSOLIDATED AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES
Quarterly, Unaudited
	Average Balance			Interest Revenue/ Expense		Percent Average Rate/Yield
(Fully taxable equivalent)
(Dollars in thousands)		1Q07		1Q07		1Q07
Assets:
Earning assets:
Loans, net of unearned income*		$22,007,211		$410,512		7.56	%
Loans held for sale		3,646,252		58,845		6.46
Investment securities:
U.S. Treasuries		50,899		636		5.06
U.S. government agencies		3,513,737		50,221		5.72
States and municipalities		1,769		4		.97
Other		250,610		3,107		4.96
Total investment securities		3,817,015		53,968		5.66
Capital markets securities inventory		2,409,211		30,297		5.03
Mortgage banking trading securities		331,800		10,317		12.44
Other earning assets:
Federal funds sold and securities
purchased under agreements to resell		1,519,375		19,228		5.13
Investment in bank time deposits		19,666		260		5.35
Total other earning assets		1,539,041		19,488		5.14
Total earning assets/Interest income		33,750,530		$583,427		6.98	%
Allowance for loan losses		(223,932	)
Cash and due from banks		880,002
Capital markets receivables		137,536
Premises and equipment, net		449,283
Other assets		3,653,625
Total assets		$38,647,044
Liabilities and shareholders' equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Interest-bearing demand deposits		$1,927,573		$6,889		1.45	%
Savings		3,413,592		26,031		3.09
Time deposits		2,893,963		33,037		4.63
Total interest-bearing core deposits		8,235,128		65,957		3.25
Certificates of deposit $100,000 and more		8,040,937		106,276		5.36
Federal funds purchased and securities
sold under agreements to repurchase		4,505,777		54,379		4.89
Capital markets trading liabilities		1,166,790		16,361		5.69
Commercial paper and other short-term
borrowings		987,898		12,785		5.25
Total long-term debt		6,388,955		90,008		5.64
Total interest-bearing liabilities/Interest
expense		29,325,485		$345,766		4.77	%
Noninterest-bearing deposits		5,104,695
Capital markets payables		222,607
Other liabilities		1,235,077
Preferred stock of subsidiary		295,277
Shareholders' equity		2,463,903
Total liabilities and shareholders' equity		$38,647,044
Net interest income-tax equivalent basis				$237,661
Fully taxable equivalent adjustment				(242	)
Net interest income				$237,419
Net interest spread						2.21	%
Effect of interest-free sources used to fund
earning assets						.63
Net interest margin						2.84	%

* Includes loans on nonaccrual status.

Yields and corresponding income amounts 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.

7

CONSOLIDATED AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES Quarterly, Unaudited
											Interest								Percent
			Average								Revenue/								Average
			Balance								Expense								Rate/Yield
(Fully taxable equivalent)
(Dollars in thousands)	4Q06		3Q06		2Q06		1Q06		4Q06		3Q06		2Q06		1Q06		4Q06		3Q06		2Q06		1Q06
Assets:
Earning assets:
Loans, net of unearned income*	$21,894,032		$21,808,787		$21,445,153		$20,853,947		$417,261		$416,980		$393,546		$363,577		7.56	%	7.59	%	7.36	%	7.07	%
Loans held for sale	3,796,828		4,192,558		4,608,310		4,760,823		63,852		72,135		75,832		76,342		6.73		6.88		6.58		6.41
Investment securities:
U.S. Treasuries	50,891		50,989		53,561		72,265		646		632		624		781		5.04		4.92		4.67		4.38
U.S. government agencies	3,652,056		3,512,162		2,731,213		2,736,495		52,107		50,262		38,211		32,676		5.71		5.72		5.60		4.78
States and municipalities	1,771		1,869		1,893		1,916		4		6		7		7		.98		1.28		1.39		1.37
Other	247,289		240,140		221,643		215,753		3,141		3,017		2,726		2,548		5.08		5.02		4.92		4.72
Total investment securities	3,952,007		3,805,160		3,008,310		3,026,429		55,898		53,917		41,568		36,012		5.66		5.67		5.53		4.76
Capital markets securities inventory	2,514,046		2,524,102		2,356,754		2,176,124		34,251		34,128		31,849		27,327		5.45		5.41		5.41		5.02
Mortgage banking trading securities	327,842		380,586		462,592		442,453		9,895		10,762		11,798		11,246		12.07		11.31		10.20		10.17
Other earning assets:
Federal funds sold and securities
purchased under agreements to resell	1,810,935		1,875,420		2,018,408		1,866,146		23,466		24,412		23,712		18,995		5.14		5.16		4.71		4.13
Investment in bank time deposits	18,091		40,899		46,860		16,122		230		544		580		179		5.04		5.27		4.96		4.51
Total other earning assets	1,829,026		1,916,319		2,065,268		1,882,268		23,696		24,956		24,292		19,174		5.14		5.17		4.72		4.13
Total earning assets/Interest income	34,313,781		34,627,512		33,946,387		33,142,044		$604,853		$612,878		$578,885		$533,678		7.01	%	7.04	%	6.83	%	6.50	%
Allowance for loan losses	(213,569	)	(206,871	)	(202,003	)	(196,316	)
Cash and due from banks	828,291		816,342		794,019		831,172
Capital markets receivables	154,908		151,037		187,435		199,635
Premises and equipment, net	446,556		436,027		427,213		418,882
Other assets	3,797,814		3,695,718		3,341,847		3,294,106
Total assets	$39,327,781		$39,519,765		$38,494,898		$37,689,523
Liabilities and shareholders' equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Interest-bearing demand deposits	$1,792,484		$1,822,558		$1,886,392		$1,892,382		$6,006		$6,561		$6,362		$5,550		1.33	%	1.43	%	1.35	%	1.19	%
Savings	3,327,576		3,270,211		3,259,930		2,902,257		26,253		25,084		21,826		15,347		3.13		3.04		2.69		2.14
Time deposits	2,921,197		2,873,451		2,779,821		2,602,581		33,732		32,090		29,116		25,338		4.58		4.43		4.20		3.95
Total interest-bearing core deposits	8,041,257		7,966,220		7,926,143		7,397,220		65,991		63,735		57,304		46,235		3.26		3.17		2.90		2.53
Certificates of deposit $100,000 and more	9,820,358		9,694,677		8,859,178		10,626,088		132,938		130,875		110,068		119,296		5.37		5.36		4.98		4.55
Federal funds purchased and securities
sold under agreements to repurchase	3,888,492		4,650,930		4,975,223		4,745,621		46,321		56,639		58,084		47,821		4.73		4.83		4.68		4.09
Capital markets trading liabilities	1,322,664		1,358,976		1,368,933		1,304,492		18,560		19,233		19,923		18,347		5.57		5.61		5.84		5.70
Commercial paper and other short-term
borrowings	889,802		773,038		750,789		765,178		12,099		10,232		9,296		8,423		5.39		5.25		4.97		4.46
Total long-term debt	5,718,968		5,538,323		5,160,610		3,805,307		82,655		80,263		70,309		47,526		5.79		5.80		5.46		5.00
Total interest-bearing liabilities/Interest
expense	29,681,541		29,982,164		29,040,876		28,643,906		$358,564		$360,977		$324,984		$287,648		4.80	%	4.79	%	4.49	%	4.06	%
Noninterest-bearing deposits	5,293,435		5,265,586		5,196,124		4,916,459
Capital markets payables	247,738		213,104		236,481		229,867
Other liabilities	1,299,041		1,321,607		1,324,715		1,268,505
Preferred stock of subsidiary	295,274		295,274		295,274		295,274
Shareholders' equity	2,510,752		2,442,030		2,401,428		2,335,512
Total liabilities and shareholders' equity	$39,327,781		$39,519,765		$38,494,898		$37,689,523
Net interest income-tax equivalent basis									$246,289		$251,901		$253,901		$246,030
Fully taxable equivalent adjustment									(291	)	(279	)	(303	)	(309	)
Net interest income									$245,998		$251,622		$253,598		$245,721
Net interest spread																	2.21	%	2.25	%	2.34	%	2.44	%
Effect of interest-free sources used to fund
earning assets																	.65		.65		.66		.55
Net interest margin																	2.86	%	2.90	%	3.00	%	2.99	%
* Includes loans on nonaccrual status.
Yields and corresponding income amounts 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.

8

MORTGAGE SERVICING RIGHTS
Quarterly, Unaudited
(Thousands)	1Q07		4Q06		3Q06			2Q06		1Q06
FIRST LIENS
Fair value beginning balance	$1,495,215		$1,464,360		$1,565,649			$1,449,472		$1,318,219
Addition of mortgage servicing rights	84,707		86,306		90,970			117,197		95,624
Reductions due to loan payments	(61,698	)	(66,937	)	(60,328	)		(72,270	)	(58,641	)
Changes in fair value due to:
Changes in current market interest rates	(17,833	)	11,601		(131,646	)		70,933		94,249
Other changes in fair value	(54	)	(115	)	(285	)		317		21
Fair value ending balance	$1,500,337		$1,495,215		$1,464,360			$1,565,649		$1,449,472
SECOND LIENS
Fair value beginning balance	$24,091		$18,851		$14,457			$11,062		$5,470
Addition of mortgage servicing rights	3,998		3,931		4,905			4,267		6,360
Reductions due to loan payments	(2,378	)	(1,716	)	(1,172	)		(955	)	(797	)
Changes in fair value due to:
Changes in current market interest rates	(1	)	11		(61	)		46		49
Changes in assumptions	-		2,400		722			-		-
Other changes in fair value	-		614		-			37		(20	)
Fair value ending balance	$25,710		$24,091		$18,851			$14,457		$11,062
HELOC
Fair value beginning balance	$14,636		$15,130		$15,307			$14,914		$14,384
Addition of mortgage servicing rights	1,041		1,028		1,559			1,891		1,971
Reductions due to loan payments	(1,683	)	(1,385	)	(1,805	)		(2,021	)	(2,317	)
Changes in fair value due to:
Changes in current market interest rates	-		(1	)	61			523		506
Changes in assumptions	-		-		8			-		-
Other changes in fair value	-		(136	)	-			-		370
Fair value ending balance	$13,994		$14,636		$15,130			$15,307		$14,914
TOTAL CONSOLIDATED
Fair value beginning balance	$1,533,942		$1,498,341		$1,595,413			$1,475,448		$1,338,073
Addition of mortgage servicing rights	89,746		91,265		97,434			123,355		103,955
Reductions due to loan payments	(65,759	)	(70,038	)	(63,305	)		(75,246	)	(61,755	)
Changes in fair value due to:
Changes in current market interest rates	(17,834	)	11,611		(131,646	)		71,502		94,804
Changes in assumptions	-		2,400		730			-		-
Other changes in fair value	(54	)	363		(285	)		354		371
Fair value ending balance	$1,540,041		$1,533,942		$1,498,341			$1,595,413		$1,475,448

9

RETAIL/COMMERCIAL BANKING
Quarterly, Unaudited
(Thousands)	1Q07		4Q06		3Q06		2Q06		1Q06
Net interest income	$224,116		$228,955		$232,830		$232,496		$225,740
Noninterest income	102,959		114,339		111,594		113,984		107,739
Divestitures	-		-		-		-		-
Security G/L	-		-		-		-		-
Total revenue	327,075		343,294		344,424		346,480		333,479
Total noninterest expense	198,195		211,509		205,416		214,744		218,366
Provision	28,493		23,263		23,549		18,361		18,026
Pretax income	$100,387		$108,522		$115,459		$113,375		$97,087
Efficiency ratio	61	%	62	%	60	%	62	%	65	%
Balance Sheet
Average loans (millions)	$21,592		$21,471		$21,382		$21,098		$20,598
Other earning assets (millions)	557		413		465		547		843
Total earning assets (millions)	$22,149		$21,884		$21,847		$21,645		$21,441
Total deposits	$12,143		$12,085		$11,980		$11,760		$11,516
Net interest margin	4.10	%	4.15	%	4.23	%	4.31	%	4.27	%
Noninterest income
Deposit transactions & cash mgmt	$39,344		$43,299		$44,483		$42,740		$38,012
Insurance commissions	9,586		8,912		10,404		12,731		14,480
Trust services & investment mgmt	9,733		10,469		9,642		10,858		10,700
Bankcard Income	5,701		6,079		6,164		6,097		6,655
Other service charges	5,460		5,014		4,638		5,343		5,364
Check clearing fees	1,212		1,386		1,594		1,679		1,727
Revenue from loan sales and
securitizations (a)	8,522		13,886		10,068		10,548		8,238
Miscellaneous revenue	23,401		25,294		24,601		23,988		22,563
Total noninterest income	$102,959		$114,339		$111,594		$113,984		$107,739
Key Statistics
Locations
Full-Service Financial Centers
First Tennesee	199		197		194		192		192
First Horizon Bank	32		32		27		23		21
Other
Trust total assets (millions)(b)	$12,878		$12,472		$12,866		$11,541		$11,838
Trust total managed assets (millions)(b)	6,700		6,546		6,270		6,223		6,379

(a) Includes gains from whole-loan sales and net revenue from asset securitizations
(b) Current quarter is an estimate

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

10

MORTGAGE BANKING
Quarterly, Unaudited
(Thousands)	1Q07		4Q06		3Q06			2Q06		1Q06
Net interest income	$17,343		$20,857		$21,266			$25,494		$25,838
Noninterest income:
Net origination fees	63,641		69,230		64,248			110,416		64,205
Net servicing fees	3,008		11,826		15,701			(727	)	10,717
Other fees	10,085		10,506		10,427			9,919		8,805
Total noninterest income	76,734		91,562		90,376			119,608		83,727
Total revenue	94,077		112,419		111,642			145,102		109,565
Noninterest expense	105,331		108,925		136,804			115,155		114,756
Provision	(7	)	(280	)	145			292		(227	)
Pretax (loss)/income	$(11,247	)	$3,774		$(25,307	)		$29,655		$(4,964	)
Noninterest expense detail
Commissions & incentives	$44,984		$47,428		$50,090			$54,831		$53,385
FAS 91 cost deferral	(1,816	)	(1,131	)	1,515			4,473		(1,743	)
Other salaries & benefits	51,882		56,462		56,584			50,420		63,708
Total salaries & benefits	95,050		102,759		108,189			109,724		115,350
Contract labor & outsourcing	2,574		3,103		4,025			4,170		4,771
Equipment & occupancy	17,221		17,362		17,095			16,074		17,953
Foreclosure provision	1,611		1,042		(698	)		2,379		(1,082	)
Other expenses	40,714		38,525		64,289			49,099		41,990
Total expenses before FAS 91 reclass	157,170		162,791		192,900			181,446		178,982
FAS 91 reclassification *	(56,343	)	(57,575	)	(59,480	)		(69,334	)	(67,178	)
Total noninterest expense before
segment allocations	100,827		105,216		133,420			112,112		111,804
Segment allocations	4,504		3,709		3,384			3,043		2,952
Total noninterest expense	$105,331		$108,925		$136,804			$115,155		$114,756
Other information
Efficiency ratio	112	%	97	%	123	%		79	%	105	%
Warehouse (millions)	$3,030		$3,124		$3,173			$3,598		$3,524
Other earning assets (millions)	762		793		836			865		739
Total earning assets (millions)	$3,792		$3,917		$4,009			$4,463		$4,263
Escrow balances	$1,858		$2,000		$1,965			$1,903		$1,641
Net interest margin	1.85	%	2.11	%	2.10	%		2.29	%	2.46	%
Warehouse Spread	1.12	%	1.24	%	1.18	%		1.44	%	1.77	%
Certain previously reported amounts have been reclassified to agree with current presentation. *See Note 1 - Financial Glossary

11

MORTGAGE BANKING
Quarterly, Unaudited
(Thousands)	1Q07		4Q06		3Q06			2Q06		1Q06
ORIGINATION INCOME
Origination Fees	$58,755		$63,255		$65,132			$77,174		$67,043
FAS 91 Fee Deferral	(1,016	)	(225	)	1,318			1,523		(126	)
Appraisal, Final Inspection,
Credit Report Fees	6,544		6,840		7,119			7,901		6,778
Total origination fees	64,283		69,870		73,569			86,598		73,695
Secondary Marketing Income:
Prime:
OMSR, SRP	76,821		68,373		72,323			90,933		74,603
Marketing G/L (Trading Gains)	17,728		25,897		13,915			37,906		22,281
Concessions	(34,350	)	(33,293	)	(34,233	)		(41,355	)	(34,020	)
LOCOM	(2,519	)	(1,629	)	(288	)		(398	)	665
Subtotal Prime	57,680		59,348		51,717			87,086		63,529
Non-Prime:
OMSR, SRP	331		2,264		3,839			1,226		3,633
LOCOM	(553	)	(2,164	)	(1,940	)		1,817		(1,340	)
Recourse Provision*	(1,757	)	(2,513	)	(3,457	)		3,023		(8,134	)
Subtotal Non-Prime	(1,979	)	(2,413	)	(1,558	)		6,066		(5,841	)
Total Secondary Marketing Fees -
Mortgage	55,701		56,935		50,159			93,152		57,688
FAS 91 Reclassification	(56,343	)	(57,575	)	(59,480	)		(69,334	)	(67,178	)
Total Origination Income	$63,641		$69,230		$64,248			$110,416		$64,205
Margins:
Marketing Margin on Deliveries (bps):
Prime:
OMSR, SRP	130		113		116			129		117
Marketing G/L (Trading Gains)	30		43		22			54		35
Concessions	(58	)	(55	)	(55	)		(59	)	(53	)
LOCOM	(4	)	(3	)	-			(1	)	1
Total Prime	98		98		83			123		100
Non-Prime:
OMSR, SRP	25		118		164			37		83
LOCOM	(41	)	(113	)	(83	)		56		(31	)
Recourse Provision*	(131	)	(131	)	(148	)		93		(186	)
Total Non-Prime	(147	)	(126	)	(67	)		186		(134	)
Total Marketing Margin on Deliveries	92		91		77			126		85
*Represents the reclassification from expense to secondary marketing income of expected loss provisions   related to the recourse obligation on sales of non-prime loans.

12

MORTGAGE BANKING
Quarterly, Unaudited
($ in millions)	1Q07		4Q06		3Q06			2Q06		1Q06
KEY ORIGINATION METRICS
Production:
First Lien Production	$6,302		$6,417		$6,351			$7,482		$6,865
Breakdown by Product Type:
Prime:
Conventional Fixed	53	%	49	%	45	%		43	%	38	%
Conventional ARM	3	%	4	%	6	%		8	%	9	%
Jumbo Fixed	9	%	8	%	7	%		6	%	6	%
Jumbo ARM	6	%	7	%	7	%		7	%	6	%
Alt A	20	%	22	%	25	%		27	%	32	%
Government	7	%	7	%	5	%		6	%	5	%
Non Prime	2	%	2	%	4	%		2	%	4	%
Other	-		1	%	1	%		1	%	-
Breakdown by Payment Type:
Fully amortizing	70	%	70	%	70	%		69	%	66	%
Interest Only - Fixed	20	%	14	%	10	%		10	%	11	%
Interest Only - ARM	10	%	15	%	18	%		17	%	19	%
Option ARM's	-		1	%	2	%		4	%	4	%
Production Refinanced %	45	%	44	%	33	%		33	%	41	%
Production Purchased %	55	%	56	%	67	%		67	%	59	%
ARMs % (Excluding Gov't ARMS)	14	%	21	%	27	%		28	%	33	%
Total Sales Force	2,486		2,440		2,495			2,467		2,609
Warehouse/Pipeline Balance:
Ending Warehouse Balance	$2,527		$2,347		$2,286			$2,587		$2,788
Ending Pipeline Balance (Locked)	4,019		3,074		3,384			3,645		3,691
Loan Sales (Deliveries):
Prime	5,919		6,062		6,257			7,066		6,371
Non-Prime	134		192		233			325		436
Total Loan Sales	6,053		6,254		6,490			7,391		6,807

Definitions:
Prime:	Mortgages made to borrowers who typically have good credit history, full documentation, and standard structures;
	"A" market conventional loans have limited credit and other risks. 1Q07 weighted average FICO score was 732.
Alt-A:	Resembles prime mortgages but lack full documentation or have non-standard structures.
	They have more potential risks than prime, but less than non-prime mortgages. 1Q07 weighted average FICO score was 717.
Non-Prime:	Mortgage loans made to borrowers who typically have derogatory information in their credit history;
	non-prime loans are also made to borrowers w/ acceptable credit history but have other non-standard loan features. 1Q07 weighted average FICO score was 624.
Government:	FHA/VA loans that are eligible for GNMA securitizations and government guarantees. 1Q07 weighted average FICO score was 669.

13

MORTGAGE BANKING
Quarterly, Unaudited
	1Q07					4Q06					3Q06					2Q06						1Q06
(Thousands)		$		bps			$		bps			$		bps			$			bps			$		bps
SERVICING INCOME
Gross Service Fees		$100,077		39			$99,852		39			$98,594		40			$95,043			39			$93,454		39
Guarantee Fees		(18,570	)	(7	)		(18,630	)	(7	)		(15,778	)	(7	)		(17,348	)		(7	)		(18,876	)	(8	)
Sub-Service Fee Income		27		-			7		-			29		-			71			-			64		-
Lender Paid MI		(2	)	-			(13	)	-			(24	)	-			(20	)		-			108		-
Net Service Fees		81,532		32			81,216		32			82,821		33			77,746			32			74,750		31
Early Payoff Interest Expense		(4,749	)	(2	)		(4,791	)	(2	)		(3,718	)	(2	)		(4,324	)		(2	)		(3,838	)	(2	)
Ancillary Fees		7,951		3			7,521		3			7,112		3			6,820			3			6,934		3
Total Service Fees		84,734		33			83,946		33			86,215		34			80,242			33			77,846		32
Change in MSR Value - Runoff		(61,698	)				(66,937	)				(60,326	)				(72,270	)					(58,836	)
Net Hedging Results
(Excluding Changes in MSR Value due to Runoff)
Change in MSR Value - Other than Runoff		(17,138	)				10,351					(133,067	)				69,564						95,961
MSR Hedge Gains/(Losses)		8,773					(7,171	)				127,240					(72,104	)					(98,290	)
Change in Trading Asset Value		(3,312	)				12					(13,628	)				3,044						8,467
Trading Asset Hedge Gains/(Losses)		1,226					(844	)				13,940					(4,438	)					(10,932	)
Option Expense on Servicing Hedges		(9,577	)				(7,531	)				(4,673	)				(4,765	)					(3,499	)
Total		(20,028	)				(5,183	)				(10,188	)				(8,699	)					(8,293	)
Total Servicing Income		3,008					11,826					15,701					(727	)					10,717
KEY SERVICING METRICS - ($ in millions)
Beginning Servicing Portfolio		$101,370					$100,246					$99,304					$97,303						$95,284
Additions to portfolio		6,237					6,333					6,238					7,332						6,797
Prepayments		(3,645	)				(3,909	)				(3,476	)				(3,725	)					(3,278	)
Amortization		(696	)				(687	)				(692	)				(687	)					(688	)
Service Release Sales		(444	)				(613	)				(1,128	)				(919	)					(812	)
End. Servicing Portfolio (Owned)		$102,822					$101,370					$100,246					$99,304						$97,303
Avg. Servicing Portfolio (Owned)		$101,992					$100,811					$99,484					$98,342						$96,147
Average Loans Serviced (#)		636,496					633,293					629,897					626,527						620,476
Product Mix (Average)
Product Mix (%)
GNMA		8	%				8	%				8	%				8	%					9	%
FNMA/FHLMC		64	%				64	%				64	%				65	%					65	%
Private		25	%				25	%				25	%				24	%					23	%
Sub-Total		97	%				97	%				97	%				97	%					97	%
Warehouse		3	%				3	%				3	%				3	%					3	%
Total		100	%				100	%				100	%				100	%					100	%
Other Statistics
(Annualized)
Ancillary Income per Loan		$49.97					$47.51					$45.16					$43.54						$44.70
Servicing Cost per Loan		$49.44					$49.45					$49.36					$50.60						$53.01
Portfolio Data
(in millions)
Average Servicing Asset **		1,505					1,452					1,532					1,503						1,350
Servicing Book Value (bps)		148					144					154					153						140
Change in MSR Asset /
Average Servicing Asset		19	%				18	%				17	%				20	%					18	%
Run-Off Rate		17	%				18	%				17	%				18	%					17	%
** Includes valuation reserve/MSRs only

14

CAPITAL MARKETS Quarterly, Unaudited
(Thousands)	1Q07		4Q06		3Q06		2Q06		1Q06
Net interest (expense)/income	$(2,068	)	$781		$2,906		$126		$(725	)
Incremental cost of equity	(3,769	)	(4,260	)	(4,437	)	(4,768	)	(4,969	)
Net interest expense	(5,837	)	(3,479	)	(1,531	)	(4,642	)	(5,694	)
Noninterest income:
Fixed income	46,313		46,235		41,503		41,843		50,602
Other product revenue	42,616		49,878		56,995		62,282		46,004
Total noninterest income	88,929		96,113		98,498		104,125		96,606
Total revenue	83,092		92,634		96,967		99,483		90,912
Noninterest expense	79,726		84,075		81,778		83,629		82,601
Pretax income	$3,366		$8,559		$15,189		$15,854		$8,311
Efficiency ratio	96	%	91	%	84	%	84	%	91	%
Trading inventory (millions)	$2,409		$2,513		$2,523		$2,356		$2,175
Other earning assets (millions)	1,633		1,889		2,231		2,262		2,149
Total earning assets (millions)	$4,042		$4,402		$4,754		$4,618		$4,324

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

15

CORPORATE Quarterly, Unaudited
(Thousands)	1Q07		4Q06		3Q06		2Q06		1Q06
Net interest income	$1,930		$(213	)	$(841	)	$308		$(100	)
Net interest income from
deferred compensation	(133	)	(123	)	(103	)	(58	)	(63	)
Total net interest income	1,797		(336	)	(944	)	250		(163	)
Noninterest income	3,028		3,140		1,754		341		(15,631	)
Noninterest income from
deferred compensation	1,265		8,188		6,948		(5,939	)	5,450
Total noninterest income	4,293		11,328		8,702		(5,598	)	(10,181	)
Security gain/(loss)	10,273		3,002		8,757		2,893		(80,281	)
Total revenue	16,363		13,994		16,515		(2,455	)	(90,625	)
Noninterest expense	17,391		16,806		20,069		15,154		11,997
Deferred compensation expense	2,369		10,315		8,832		(5,671	)	7,361
Total noninterest expense	19,760		27,121		28,901		9,483		19,358
Pretax loss	$(3,397	)	$(13,127	)	$(12,386	)	$(11,938	)	$(109,983	)

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

16

CAPITAL HIGHLIGHTS Quarterly, Unaudited
(Dollars in millions, except per share amounts)	1Q07		4Q06		3Q06		2Q06		1Q06
Tier 1 Capital (a)	$2,738.8		$2,696.3		$2,660.2		$2,612.2		$2,558.3
Tier 2 Capital (a)	1,324.1		1,320.1		1,338.2		1,331.2		1,344.5
Total Capital (a)	$4,062.9		$4,016.4		$3,998.4		$3,943.4		$3,902.8
Risk-Adjusted Assets (a)	$31,260.4		$30,405.4		$31,583.6		$30,030.8		$29,190.9
Tier 1 Ratio (a)	8.76	%	8.87	%	8.42	%	8.70	%	8.76	%
Tier 2 Ratio (a)	4.24		4.34		4.24		4.43		4.61
Total Capital Ratio (a)	13.00	%	13.21	%	12.66	%	13.13	%	13.37	%
Leverage Ratio (a)	7.17	%	6.94	%	6.80	%	6.86	%	6.86	%
Shareholders' Equity/Assets Ratio (b)	6.47		6.49		6.26		6.52		6.43
Book Value	$19.88		$19.61		$20.06		$19.59		$19.36

(a) Current quarter is an estimate

(b) Calculated on period-end balances

17

Note 1 - Financial Glossary  

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

Concessions: The net amount of the discount or premium pricing charged to borrowers upon loan origination. This also includes the servicing release premium paid to correspondents to purchase loans. Discount pricing is used to competitively price mortgage loans.

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. For loans held for sale, 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 the loans sold during the period.

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.

Marketing G/L (Trading Gains): The net result of hedging activities.

Originated Mortgage Servicing Rights (OMSR): The retained right to service a mortgage loan when a mortgage loan is sold on a servicing-retained basis. Represents the present value of the amount by which the estimated future net cash flows from servicing mortgage loans exceeds the cost of servicing mortgage loans.

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.

Servicing Released Premium (SRP): The premium received for selling loans on a servicing released basis.