Unassociated Document

FINANCIAL SUPPLEMENT

If you need further information, please contact:

Dave Miller, Investor Relations

901-523-4162

dwmiller@firsthorizon.com

TABLE OF CONTENTS

				Page

Performance Highlights				3

Restructuring, Repositioning, and Efficiency Initiatives				4

Consolidated Results
	Income Statement
		Summary Income Statement		5
		Income Statement		6
		Other Income and Other Expense		7
	Balance Sheet
		Period End Balance Sheet		8
		Average and Period End Loans		9
		Average Balance Sheet		10
			Average Balance Sheet: Income & Expense	11
			Average Balance Sheet: Yields & Rates	12
	Mortgage Servicing Rights			13

Credit Quality
		Asset Quality Highlights - Allowance Detail		14
		Asset Quality Highlights - Key Ratios & Metrics		15

Business Segment Detail
		Segment Highlights		16
		Retail/Commercial Banking		17
		Mortgage Banking		18
			Mortgage Banking: Origination Income	19
			Mortgage Banking: Origination Metrics	20
			Mortgage Banking: Servicing	21
		Capital Markets		22
		Corporate		23

Capital Highlights				24

Glossary of Terms				25

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, 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.

CONSOLIDATED SUMMARY INCOME STATEMENT
Quarterly, Unaudited

																2Q07 Change vs.
(Thousands)	*2Q07*			1Q07			4Q06			3Q06			2Q06			1Q07			2Q06
Net interest income		$239,432			$237,419			$245,997			$251,621			$253,598			1	%		(6	)%
Noninterest income		281,313			272,915			313,342			309,170			332,119			3	%		(15	)%
Securities (losses)/gains, net		(1,014	)		10,273			3,002			8,757			2,893		NM			NM
Total revenue		519,731			520,607			562,341			569,548			588,610			*			(12	)%
Noninterest expense		457,240			403,012			431,630			452,899			423,011			13	%		8	%
Provision		44,408			28,486			22,983			23,694			18,653			56	%		138	%
Pretax income		18,083			89,109			107,728			92,955			146,946			(80	)%		(88	)%
(Benefit)/provision for income taxes		(3,861	)		18,802			31,448			25,776			43,013			(121	)%		(109	)%
Income from continuing operations		21,944			70,307			76,280			67,179			103,933			(69	)%		(79	)%
Income/(loss) from discontinued operations, net of tax		179			240			187			(69	)		376			(25	)%		(52	)%
Net income		$22,123			$70,547			$76,467			$67,110			$104,309			(69	)%		(79	)%
Common Stock Data
Diluted EPS from continuing operations		$.17			$.55			$.60			$.53			$.82			(69	)%		(79	)%
Diluted EPS		.17			.55			.60			.53			.82			(69	)%		(79	)%
Diluted shares		128,737			128,704			127,784			127,523			127,280			*			1	%
Period-end shares outstanding		126,237			125,749			124,866			124,467			123,947			*			2	%
Dividends declared per share		$.45			$.45			$.45			$.45			$.45			-			-
Key Ratios & Other
Return on average assets		.23	%		.74	%		.77	%		.67	%		1.09	%
Return on average equity		3.57	%		11.61	%		12.08	%		10.90	%		17.42	%
Net interest margin		2.79	%		2.84	%		2.85	%		2.89	%		2.99	%
Tax rate	NM				21.10	%		29.19	%		27.73	%		29.27	%
Efficiency ratio		87.98	%		77.41	%		76.76	%		79.52	%		71.87	%
FTE employees		11,903			12,018			12,131			12,324			12,413			(1	)%		(4	)%
NM - Not meaningful
* Amount is less than one percent.

CONSOLIDATED INCOME STATEMENT
Quarterly, Unaudited

													2Q07 Change vs.
(Thousands)	*2Q07*			1Q07		4Q06		3Q06			2Q06		1Q07			2Q06
Interest income		$594,903			$583,185		$604,562		$612,598			$578,582		2	%		3	%
Less interest expense		355,471			345,766		358,565		360,977			324,984		3	%		9	%
Net interest income		239,432			237,419		245,997		251,621			253,598		1	%		(6	)%
Provision for loan losses (a)		44,408			28,486		22,983		23,694			18,653		56	%		138	%
Net interest income after
provision for loan losses		195,024			208,933		223,014		227,927			234,945		(7	)%		(17	)%
Noninterest income:
Capital markets		85,054			87,113		92,809		95,215			102,165		(2	)%		(17	)%
Mortgage banking		71,300			73,097		87,524		85,935			116,472		(2	)%		(39	)%
Deposit transactions
and cash management		43,079			39,358		43,317		44,503			42,756		9	%		1	%
Revenue from loan sales and securitizations		9,615			9,663		16,276		11,830			12,212		*			(21	)%
Insurance commissions		7,674			9,789		8,951		10,534			12,461		(22	)%		(38	)%
Trust services and investment
management		10,628			9,688		10,424		9,609			10,824		10	%		(2	)%
Securities (losses)/gains, net		(1,014	)		10,273		3,002		8,757			2,893	NM			NM
Other (b) (c)		53,963			44,207		54,041		51,544			35,229		22	%		53	%
Total noninterest income		280,299			283,188		316,344		317,927			335,012		(1	)%		(16	)%
Adjusted gross income after
provision for loan losses		475,323			492,121		539,358		545,854			569,957		(3	)%		(17	)%
Noninterest expense:
Employee compensation,
incentives and benefits (a) (c)		258,191			246,343		257,397		260,351			245,796		5	%		5	%
Occupancy (a)		33,402			28,784		29,298		29,745			27,525		16	%		21	%
Equipment rentals, depreciation
and maintenance (a)		21,791			17,613		17,867		17,893			17,858		24	%		22	%
Operations services		17,457			17,821		17,550		17,976			17,075		(2	)%		2	%
Communications and courier		10,746			11,540		11,978		12,950			13,409		(7	)%		(20	)%
Amortization of intangible assets		2,623			2,825		2,460		3,233			2,881		(7	)%		(9	)%
Other (a) (b)		113,030			78,086		95,080		110,751			98,467		45	%		15	%
Total noninterest expense		457,240			403,012		431,630		452,899			423,011		13	%		8	%
Pretax income		18,083			89,109		107,728		92,955			146,946		(80	)%		(88	)%
(Benefit)/provision for income taxes (d)		(3,861	)		18,802		31,448		25,776			43,013		(121	)%		(109	)%
Income from continuing operations		21,944			70,307		76,280		67,179			103,933		(69	)%		(79	)%
Income/(loss) from discontinued operations,
net of tax		179			240		187		(69	)		376		(25	)%		(52	)%
Net income		$22,123			$70,547		$76,467		$67,110			$104,309		(69	)%		(79	)%
NM - Not meaningful
* Amount is less than one percent.

OTHER INCOME AND OTHER EXPENSE
Quarterly, Unaudited

													2Q07 Change vs.
(Thousands)	*2Q07*		1Q07		4Q06		3Q06			2Q06			1Q07			2Q06

Other Income
Brokerage management fees and
commissions		$10,263		$9,631		$9,434		$8,545			$10,243			7	%		*
Bankcard income		6,319		6,005		6,386		6,441			6,362			5	%		(1	)%
Bank owned life insurance		6,250		5,965		6,054		5,216			3,928			5	%		59	%
Remittance processing		3,330		3,500		3,576		3,525			3,642			(5	)%		(9	)%
Deferred compensation (a)		7,603		1,265		8,188		6,948			(5,939	)		501	%	NM
Other service charges		3,677		3,681		3,556		3,622			3,764			*			(2	)%
Letter of credit		1,495		1,620		1,712		1,659			1,885			(8	)%		(21	)%
ATM interchange fees		2,131		1,917		1,801		1,809			1,799			11	%		18	%
Reinsurance fees		2,056		1,784		2,075		1,595			1,571			15	%		31	%
Check clearing fees		1,284		1,212		1,386		1,593			1,679			6	%		(24	)%
Electronic banking fees		1,639		1,655		1,505		1,485			1,502			(1	)%		9	%
Federal flood certifications		1,383		1,123		1,121		1,214			1,361			23	%		2	%
Other (b)		6,533		4,849		7,247		7,892			3,432			35	%		90	%
Total		$53,963		$44,207		$54,041		$51,544			$35,229			22	%		53	%

Other Expense
Advertising and public relations		$11,312		$10,262		$11,162		$13,272			$10,998			10	%		3	%
Legal and professional fees (c)		14,130		11,591		12,046		11,071			11,600			22	%		22	%
Computer software		9,237		9,186		8,608		8,959			8,827			1	%		5	%
Travel and entertainment (c)		7,391		5,814		8,518		8,164			8,652			27	%		(15	)%
Contract employment (c)		5,549		5,022		5,836		6,955			7,094			10	%		(22	)%
Distributions on preferred stock
of subsidiary		4,701		4,658		4,769		4,874			4,453			1	%		6	%
Low income housing expense		5,082		4,752		6,056		3,968			3,282			7	%		55	%
Supplies		3,430		3,601		3,177		3,961			4,260			(5	)%		(19	)%
Loan closing costs		3,623		3,024		2,297		3,835			3,729			20	%		(3	)%
Customer relations		2,420		1,942		2,287		2,123			2,177			25	%		11	%
Other insurance and taxes		2,003		2,403		2,265		2,269			2,209			(17	)%		(9	)%
Employee training and dues		2,028		1,648		1,533		1,658			1,912			23	%		6	%
Loan insurance expense		1,167		1,247		721		1,784			1,958			(6	)%		(40	)%
Fed services fees		1,599		1,445		1,445		1,613			1,736			11	%		(8	)%
Complimentary check expense		1,324		1,291		1,329		1,357			1,357			3	%		(2	)%
Foreclosed real estate		3,492		2,292		1,675		(86	)		2,587			52	%		35	%
Bank examination costs		1,091		1,130		1,102		1,103			1,081			(3	)%		1	%
Deposit insurance premium		606		883		765		737			801			(31	)%		(24	)%
Other (b) (c)		32,845		5,895		19,489		33,134			19,754			457	%		66	%
Total		$113,030		$ 78,086		$95,080		$110,751			$98,467			45	%		15	%
NM - Not meaningful
* Amount is less than one percent.

CONSOLIDATED PERIOD-END BALANCE SHEET
Quarterly, Unaudited

																2Q07 Change vs.
(Thousands)	*2Q07*			1Q07			4Q06			3Q06			2Q06			1Q07			2Q06

Assets
Investment securities		$3,374,853			$3,310,960			$3,923,484			$4,014,003			$3,138,051			2	%		8	%
Loans held for sale		3,330,489			2,921,629			2,873,577			2,798,281			3,222,735			14	%		3	%
Loans, net of unearned income		22,382,303			22,268,190			22,104,905			21,955,030			21,717,264			*			3	%
Federal funds sold and securities
purchased under agreements to resell		1,121,052			1,757,365			1,202,537			1,992,426			1,572,143			(36	)%		(29	)%
Investment in bank time deposits		58,241			15,739			18,037			17,798			75,903			270	%		(23	)%
Trading securities		2,291,704			2,443,342			2,230,745			2,512,744			2,183,102			(6	)%		5	%
Total earning assets		32,558,642			32,717,225			32,353,285			33,290,282			31,909,198			*			2	%
Cash and due from banks		799,428			861,534			943,555			872,528			825,364			(7	)%		(3	)%
Capital markets receivables		1,240,456			1,144,135			732,282			1,027,927			1,058,690			8	%		17	%
Mortgage servicing rights, net		1,522,966			1,540,041			1,533,942			1,498,341			1,595,413			(1	)%		(5	)%
Goodwill		279,825			275,582			275,582			274,534			281,910			2	%		(1	)%
Other intangible assets, net		61,947			61,672			64,530			70,546			75,055			*			(17	)%
Premises and equipment, net		438,807			445,301			451,708			441,659			431,385			(1	)%		2	%
Real estate acquired by foreclosure		67,499			68,613			63,519			65,224			60,577			(2	)%		11	%
Discontinued assets		-			358			416			939,728			696		NM			NM
Allowance for loan losses		(229,919	)		(220,806	)		(216,285	)		(206,829	)		(199,835	)		4	%		15	%
Other assets		1,654,433			1,935,111			1,715,725			1,802,243			1,430,781			(15	)%		16	%
Total assets		$38,394,084			$38,828,766			$37,918,259			$40,076,183			$37,469,234			(1	)%		2	%

Liabilities and Shareholders' Equity
Deposits
Savings		$3,520,757			$3,607,674			$3,354,180			$3,256,680			$3,246,821			(2	)%		8	%
Other interest-bearing deposits		1,822,076			1,941,422			1,969,700			1,742,276			1,894,707			(6	)%		(4	)%
Time deposits		2,885,307			2,876,257			2,924,050			2,906,424			2,819,597			*			2	%
Total interest-bearing core deposits		8,228,140			8,425,353			8,247,930			7,905,380			7,961,125			(2	)%		3	%
Noninterest-bearing deposits		5,516,735			5,506,791			5,447,673			5,458,935			5,679,198			*			(3	)%
Total core deposits		13,744,875			13,932,144			13,695,603			13,364,315			13,640,323			(1	)%		1	%
Certificates of deposit $100,000 and more		8,016,808			8,559,807			6,517,629			11,920,226			8,053,119			(6	)%		*
Total deposits		21,761,683			22,491,951			20,213,232			25,284,541			21,693,442			(3	)%		*
Federal funds purchased and securities
sold under agreements to repurchase		3,841,251			3,173,476			4,961,799			2,416,974			3,387,711			21	%		13	%
Trading liabilities		658,533			678,796			789,957			847,453			929,694			(3	)%		(29	)%
Commercial paper and other short-term borrowings		246,815			819,768			1,258,513			926,292			721,227			(70	)%		(66	)%
Term borrowings		5,828,138			5,968,789			5,243,961			5,226,772			5,325,014			(2	)%		9	%
Other collateralized borrowings		821,966			559,226			592,399			260,416			281,280			47	%		192	%
Total long-term debt		6,650,104			6,528,015			5,836,360			5,487,188			5,606,294			2	%		19	%
Capital markets payables		1,144,029			1,088,340			799,489			989,332			1,057,617			5	%		8	%
Discontinued liabilities		-			32,608			6,966			6,977			8,422		NM			NM
Other liabilities		1,332,910			1,205,859			1,294,283			1,311,628			1,327,360			11	%		*
Total liabilities		35,635,325			36,018,813			35,160,599			37,270,385			34,731,767			(1	)%		3	%
Preferred stock of subsidiary		295,277			295,277			295,270			295,274			295,274			*			*
Shareholders' Equity
Common stock		78,898			78,593			78,041			77,792			77,467			*			2	%
Capital surplus		352,138			341,491			312,521			301,857			282,563			3	%		25	%
Undivided profits		2,120,014			2,155,007			2,144,276			2,124,312			2,113,514			(2	)%		*
Accumulated other comprehensive (loss)/income, net		(87,568	)		(60,415	)		(72,448	)		6,563			(31,351	)		45	%		179	%
Total shareholders' equity		2,463,482			2,514,676			2,462,390			2,510,524			2,442,193			(2	)%		1	%
Total liabilities and shareholders' equity		$38,394,084			$38,828,766			$37,918,259			$40,076,183			$37,469,234			(1	)%		2	%
NM - Not meaningful
* Amount is less than one percent.
Certain previously reported amounts have been reclassified to agree with current presentation.

CONSOLIDATED AVERAGE AND PERIOD-END LOANS
Quarterly, Unaudited

											2Q07 Change vs.
(Thousands)	*2Q07*		1Q07		4Q06		3Q06		2Q06		1Q07			2Q06

Average Loans (Net)
Commercial
Commercial, financial and industrial		$7,292,380		$7,131,102		$6,903,708		$6,803,461		$6,570,293		2	%		11	%
Real estate commercial		1,260,196		1,157,711		1,187,431		1,221,408		1,259,416		9	%		*
Real estate construction		2,919,522		2,843,263		2,741,118		2,575,590		2,380,430		3	%		23	%
Total commercial loans		11,472,098		11,132,076		10,832,257		10,600,459		10,210,139		3	%		12	%
Retail
Real estate residential		7,854,784		7,908,039		8,211,506		8,512,589		8,560,085		(1	)%		(8	)%
Real estate construction		2,095,021		2,045,952		2,081,885		2,065,849		2,028,480		2	%		3	%
Other retail		149,976		153,651		160,366		160,446		162,573		(2	)%		(8	)%
Credit card receivables		194,732		195,209		201,092		201,319		197,706		*			(2	)%
Real estate loans pledged against
other collateralized borrowings		543,771		572,284		406,926		268,125		286,170		(5	)%		90	%
Total retail loans		10,838,284		10,875,135		11,061,775		11,208,328		11,235,014		*			(4	)%
Total loans, net of unearned income		$22,310,382		$22,007,211		$21,894,032		$21,808,787		$21,445,153		1	%		4	%

Period-End Loans (Net)
Commercial
Commercial, financial and industrial		$7,218,582		$7,371,873		$7,201,009		$6,945,207		$6,705,925		(2	)%		8	%
Real estate commercial		1,389,963		1,144,086		1,136,590		1,199,084		1,276,278		21	%		9	%
Real estate construction		2,830,856		2,931,183		2,753,458		2,660,415		2,453,579		(3	)%		15	%
Total commercial loans		11,439,401		11,447,142		11,091,057		10,804,706		10,435,782		*			10	%
Retail
Real estate residential		7,614,887		7,856,197		7,973,313		8,428,652		8,562,733		(3	)%		(11	)%
Real estate construction		2,158,775		2,073,293		2,085,133		2,096,440		2,076,004		4	%		4	%
Other retail		149,157		151,959		161,178		163,134		163,121		(2	)%		(9	)%
Credit card receivables		194,715		187,658		203,307		202,866		202,117		4	%		(4	)%
Real estate loans pledged against
other collateralized borrowings		825,368		551,941		590,917		259,232		277,507		50	%		197	%
Total retail loans		10,942,902		10,821,048		11,013,848		11,150,324		11,281,482		1	%		(3	)%
Total loans, net of unearned income		$22,382,303		$22,268,190		$22,104,905		$21,955,030		$21,717,264		1	%		3	%
NM - Not meaningful
* Amount is less than one percent.

CONSOLIDATED AVERAGE BALANCE SHEET
Quarterly, Unaudited

																2Q07 Change vs.
(Thousands)	*2Q07*			1Q07			4Q06			3Q06			2Q06			1Q07			2Q06

Assets:
Earning assets:
Loans, net of unearned income*		$22,310,382			$22,007,211			$21,894,032			$21,808,787			$21,445,153			1	%		4	%
Loans held for sale		4,087,446			3,646,252			3,796,828			4,192,558			4,608,310			12	%		(11	)%
Investment securities:
U.S. Treasuries		156,865			50,899			50,891			50,989			53,561			208	%		193	%
U.S. government agencies		3,005,463			3,513,737			3,652,056			3,512,162			2,731,213			(14	)%		10	%
States and municipalities		1,769			1,769			1,771			1,869			1,893			**			(7	)%
Other		232,850			284,625			279,353			270,435			250,516			(18	)%		(7	)%
Total investment securities		3,396,947			3,851,030			3,984,071			3,835,455			3,037,183			(12	)%		12	%
Capital markets securities inventory		2,546,668			2,409,211			2,514,046			2,524,102			2,356,754			6	%		8	%
Mortgage banking trading securities		528,457			331,800			327,842			380,586			462,592			59	%		14	%
Other earning assets:
Federal funds sold and securities
purchased under agreements to resell		1,442,951			1,519,375			1,810,935			1,875,420			2,018,408			(5	)%		(29	)%
Investment in bank time deposits		32,310			19,666			18,091			40,899			46,860			64	%		(31	)%
Total other earning assets		1,475,261			1,539,041			1,829,026			1,916,319			2,065,268			(4	)%		(29	)%
Total earning assets		34,345,161			33,784,545			34,345,845			34,657,807			33,975,260			2	%		1	%
Allowance for loan losses		(229,157	)		(223,932	)		(213,569	)		(206,871	)		(202,003	)		2	%		13	%
Cash and due from banks		804,816			845,987			796,227			786,047			765,146			(5	)%		5	%
Capital markets receivables		165,433			137,536			154,908			151,037			187,435			20	%		(12	)%
Premises and equipment, net		443,428			449,283			446,556			436,027			427,213			(1	)%		4	%
Other assets		3,540,463			3,653,625			3,797,814			3,695,718			3,341,847			(3	)%		6	%
Total assets		$39,070,144			$38,647,044			$39,327,781			$39,519,765			$38,494,898			1	%		1	%

Liabilities and shareholders' equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Other interest-bearing deposits		$1,892,479			$1,927,573			$1,792,484			$1,822,558			$1,886,392			(2	)%		**
Savings		3,538,198			3,413,592			3,327,576			3,270,211			3,259,930			4	%		9	%
Time deposits		2,874,932			2,893,963			2,921,197			2,873,451			2,779,821			(1	)%		3	%
Total interest-bearing core deposits		8,305,609			8,235,128			8,041,257			7,966,220			7,926,143			1	%		5	%
Certificates of deposit $100,000 and more		8,271,191			8,040,937			9,820,358			9,694,677			8,859,178			3	%		(7	)%
Federal funds purchased and securities
sold under agreements to repurchase		4,967,888			4,505,777			3,888,492			4,650,930			4,975,223			10	%		**
Capital markets trading liabilities		1,054,718			1,166,790			1,322,664			1,358,976			1,368,933			(10	)%		(23	)%
Commercial paper and other short-term
borrowings		560,721			987,898			889,802			773,038			750,789			(43	)%		(25	)%
Long term debt:
Term borrowings		5,887,063			5,807,925			5,307,502			5,265,288			4,867,560			1	%		21	%
Other collateralized borrowings		550,604			581,030			411,466			273,035			293,050			(5	)%		88	%
Total long-term debt		6,437,667			6,388,955			5,718,968			5,538,323			5,160,610			1	%		25	%
Total interest-bearing liabilities		29,597,794			29,325,485			29,681,541			29,982,164			29,040,876			1	%		2	%
Noninterest-bearing deposits		5,304,752			5,104,695			5,293,435			5,265,586			5,196,124			4	%		2	%
Capital markets payables		182,960			222,607			247,738			213,104			236,481			(18	)%		(23	)%
Other liabilities		1,206,237			1,235,077			1,299,041			1,321,607			1,324,715			(2	)%		(9	)%
Preferred stock of subsidiary		295,277			295,277			295,274			295,274			295,274			-			**
Shareholders' equity		2,483,124			2,463,903			2,510,752			2,442,030			2,401,428			1	%		3	%
Total liabilities and shareholders' equity		$39,070,144			$38,647,044			$39,327,781			$39,519,765			$38,494,898			1	%		1	%
* Includes loans on nonaccrual status.
** Amount is less than one percent.
NM - Not meaningful
Certain previously reported amounts have been reclassified to agree with current presentation.

CONSOLIDATED AVERAGE BALANCE SHEET: INCOME & EXPENSE
Quarterly, Unaudited

																2Q07 Change vs.
(Thousands)	*2Q07*			1Q07			4Q06			3Q06			2Q06			1Q07			2Q06

Assets:
Earning assets:
Loans, net of unearned income*		$413,340			$410,512			$417,262			$416,980			$393,547			1	%		5	%
Loans held for sale		65,923			58,845			63,852			72,135			75,832			12	%		(13	)%
Investment securities:
U.S. Treasuries		1,853			636			646			631			624			191	%		197	%
U.S. government agencies		42,474			50,221			52,107			50,262			38,211			(15	)%		11	%
States and municipalities		4			4			4			6			7			-			(43	)%
Other		2,776			3,514			3,527			3,396			3,063			(21	)%		(9	)%
Total investment securities		47,107			54,375			56,284			54,295			41,905			(13	)%		12	%
Capital markets securities inventory		34,087			30,297			34,251			34,128			31,849			13	%		7	%
Mortgage banking trading securities		16,029			10,317			9,895			10,762			11,798			55	%		36	%
Other earning assets:
Federal funds sold and securities
purchased under agreements to resell		18,142			18,821			23,080			24,033			23,374			(4	)%		(22	)%
Investment in bank time deposits		410			260			230			544			580			58	%		(29	)%
Total other earning assets		18,552			19,081			23,310			24,577			23,954			(3	)%		(23	)%
Total earning assets/interest income		$595,038			$583,427			$604,854			$612,877			$578,885			2	%		3	%
Allowance for loan losses
Cash and due from banks
Capital markets receivables
Premises and equipment, net
Other assets
Total assets

Liabilities and shareholders' equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Other interest-bearing deposits		$6,808			$6,889			$6,006			$6,561			$6,362			(1	)%		7	%
Savings		29,919			26,031			26,253			25,084			21,826			15	%		37	%
Time deposits		33,555			33,037			33,733			32,090			29,116			2	%		15	%
Total interest-bearing core deposits		70,282			65,957			65,992			63,735			57,304			7	%		23	%
Certificates of deposit $100,000 and more		110,630			106,276			132,938			130,875			110,068			4	%		1	%
Federal funds purchased and securities
sold under agreements to repurchase		61,745			54,379			46,321			56,639			58,084			14	%		6	%
Capital markets trading liabilities		14,272			16,361			18,560			19,233			19,923			(13	)%		(28	)%
Commercial paper and other short-term
borrowings		7,187			12,785			12,099			10,232			9,296			(44	)%		(23	)%
Long term debt:
Term borrowings		83,529			81,834			76,607			76,336			66,463			2	%		26	%
Other collateralized borrowings		7,826			8,174			6,048			3,927			3,846			(4	)%		103	%
Total long-term debt		91,355			90,008			82,655			80,263			70,309			1	%		30	%
Total interest-bearing liabilities/interest expense		$355,471			$345,766			$358,565			$360,977			$324,984			3	%		9	%
Noninterest-bearing deposits
Capital markets payables
Other liabilities
Preferred stock of subsidiary
Shareholders' equity
Total liabilities and shareholders' equity
Net interest income-tax equivalent basis		$239,567			$237,661			$246,289			$251,900			$253,901			1	%		(6	)%
Fully taxable equivalent adjustment		(135	)		(242	)		(292	)		(279	)		(303	)		(44	)%		(55	)%
Net interest income		$239,432			$237,419			$245,997			$251,621			$253,598			1	%		(6	)%

CONSOLIDATED AVERAGE BALANCE SHEET: YIELDS & RATES
Quarterly, Unaudited

																2Q07 Change vs.
(Thousands)	*2Q07*			1Q07			4Q06			3Q06			2Q06			1Q07	2Q06

Assets:
Earning assets:
Loans, net of unearned income*		7.43	%		7.56	%		7.56	%		7.59	%		7.36	%
Loans held for sale		6.45			6.46			6.73			6.88			6.58
Investment securities:
U.S. Treasuries		4.74			5.06			5.04			4.92			4.67
U.S. government agencies		5.65			5.72			5.71			5.72			5.60
States and municipalities		.98			.97			.98			1.28			1.39
Other		4.77			4.94			5.05			5.02			4.89
Total investment securities		5.55			5.65			5.65			5.66			5.52
Capital markets securities inventory		5.35			5.03			5.45			5.41			5.41
Mortgage banking trading securities		12.13			12.44			12.07			11.31			10.20
Other earning assets:
Federal funds sold and securities
purchased under agreements to resell		5.04			5.02			5.06			5.08			4.64
Investment in bank time deposits		5.10			5.35			5.04			5.27			4.96
Total other earning assets		5.04			5.03			5.06			5.09			4.65
Total earning assets/interest income		6.94	%		6.97	%		7.00	%		7.03	%		6.83	%
Allowance for loan losses
Cash and due from banks
Capital markets receivables
Premises and equipment, net
Other assets
Total assets

Liabilities and shareholders' equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Other interest-bearing deposits		1.44	%		1.45	%		1.33	%		1.43	%		1.35	%
Savings		3.39			3.09			3.13			3.04			2.69
Time deposits		4.68			4.63			4.58			4.43			4.20
Total interest-bearing core deposits		3.39			3.25			3.26			3.17			2.90
Certificates of deposit $100,000 and more		5.36			5.36			5.37			5.36			4.98
Federal funds purchased and securities
sold under agreements to repurchase		4.99			4.89			4.73			4.83			4.68
Capital markets trading liabilities		5.43			5.69			5.57			5.61			5.84
Commercial paper and other short-term
borrowings		5.14			5.25			5.39			5.25			4.97
Long term debt:
Term borrowings		5.68			5.64			5.78			5.80			5.47
Other collateralized borrowings		5.69			5.63			5.88			5.75			5.25
Total long-term debt		5.68			5.64			5.79			5.80			5.46
Total interest-bearing liabilities/interest expense		4.81	%		4.77	%		4.80	%		4.79	%		4.49	%
Noninterest-bearing deposits
Capital markets payables
Other liabilities
Preferred stock of subsidiary
Shareholders' equity
Total liabilities and shareholders' equity
Net interest spread		2.13	%		2.20	%		2.20	%		2.24	%		2.34	%
Effect of interest-free sources used to fund
earning assets		.66			.64			.65			.65			.65
Net interest margin		2.79	%		2.84	%		2.85	%		2.89	%		2.99	%

MORTGAGE SERVICING RIGHTS
Quarterly, Unaudited

																2Q07 Change vs.
(Thousands)	*2Q07*			1Q07			4Q06			3Q06			2Q06			1Q07			2Q06

First Liens
Fair value beginning balance		$1,500,337			$1,495,215			$1,464,360			$1,565,649			$1,449,472			*			4	%
Addition of mortgage servicing rights		100,550			84,707			86,306			90,970			117,197
Reductions due to loan payments		(62,661	)		(61,698	)		(66,937	)		(60,328	)		(72,270	)
Changes in fair value due to:
Changes in current market interest rates		118,048			(17,833	)		11,601			(131,646	)		70,933
Reclassification to trading assets		(174,547	)		-			-			-			-
Other changes in fair value		-			(54	)		(115	)		(285	)		317
Fair value ending balance		$1,481,727			$1,500,337			$1,495,215			$1,464,360			$1,565,649			(1	)%		(5	)%

Second Liens
Fair value beginning balance		$25,710			$24,091			$18,851			$14,457			$11,062			7	%		132	%
Addition of mortgage servicing rights		3,997			3,998			3,931			4,905			4,267
Reductions due to loan payments		(2,169	)		(2,378	)		(1,716	)		(1,172	)		(955	)
Changes in fair value due to:
Changes in current market interest rates		67			(1	)		11			(61	)		46
Changes in assumptions		-			-			2,400			722			-
Other changes in fair value		3			-			614			-			37
Fair value ending balance		$27,608			$25,710			$24,091			$18,851			$14,457			7	%		91	%

HELOC
Fair value beginning balance		$13,994			$14,636			$15,130			$15,307			$14,914			(4	)%		(6	)%
Addition of mortgage servicing rights		791			1,041			1,028			1,559			1,891
Reductions due to loan payments		(1,154	)		(1,683	)		(1,385	)		(1,805	)		(2,021	)
Changes in fair value due to:
Changes in current market interest rates		-			-			(1	)		61			523
Changes in assumptions		-			-			-			8			-
Other changes in fair value		-			-			(136	)		-			-
Fair value ending balance		$13,631			$13,994			$14,636			$15,130			$15,307			*			(11	)%

Total Consolidated
Fair value beginning balance		$ 1,540,041			$1,533,942			$ 1,498,341			$ 1,595,413			$1,475,448			*			4	%
Addition of mortgage servicing rights		105,338			89,746			91,265			97,434			123,355
Reductions due to loan payments		(65,984	)		(65,759	)		(70,038	)		(63,305	)		(75,246	)
Changes in fair value due to:
Changes in current market interest rates		118,115			(17,834	)		11,611			(131,646	)		71,502
Changes in assumptions		-			-			2,400			730			-
Reclassification to trading assets		(174,547	)		-			-			-			-
Other changes in fair value		3			(54	)		363			(285	)		354
Fair value ending balance		$1,522,966			$1,540,041			$1,533,942			$1,498,341			$1,595,413			(1	)%		(5	)%

ASSET QUALITY HIGHLIGHTS
Quarterly, Unaudited

																2Q07 Change vs.
(Thousands)	*2Q07*			1Q07			4Q06			3Q06			2Q06			1Q07			2Q06

Allowance for Loan Losses
Beginning Reserve		$220,806			$216,285			$206,829			$199,835			$195,011			2	%		13	%
Provision		44,408			28,486			22,983			23,694			18,653			56	%		138	%
Divestitures/acquisitions/transfers		(12,326	)		2,655			-			(275	)		-		NM			NM
Charge-offs		(26,493	)		(29,665	)		(16,535	)		(19,782	)		(17,518	)		(11	)%		51	%
Recoveries		3,524			3,045			3,008			3,357			3,689			16	%		(4	)%
Ending Balance		$229,919			$220,806			$216,285			$206,829			$199,835			4	%		15	%
Reserve for off-balance sheet commitments		$10,494			$9,406			$9,378			$9,230			$9,250			12	%		13	%
Total of allowance for loan losses and reserve
for off-balance sheet commitments		$240,413			$230,212			$225,663			$216,059			$209,085			4	%		15	%

Non-Performing Assets
Retail/Commercial Banking
Nonperforming loans		$128,025			$73,620			$82,837			$63,956			$61,358			74	%		109	%
Foreclosed real estate		36,635			35,388			31,230			29,947			24,425			4	%		50	%
Total Retail/Commercial Banking		164,660			109,008			114,067			93,903			85,783			51	%		92	%
Mortgage Banking
Nonperforming loans - held for sale		12,484			10,347			10,793			10,488			14,976			21	%		(17	)%
Foreclosed real estate		16,953			16,569			14,168			13,598			11,899			2	%		42	%
Total Mortgage Banking		29,437			26,916			24,961			24,086			26,875			9	%		10	%
Total nonperforming assets		$194,097			$135,924			$139,028			$117,989			$112,658			43	%		72	%

Other
Loans past due 90 days or more (a)		$171,027			$169,840			$167,192			$160,662			$165,759			1	%		3	%
Guaranteed portion of loans past due
90 days or more (a)		130,858			123,461			128,869			130,373			136,529			6	%		(4	)%

Foreclosed real estate from GNMA loans		13,910			16,655			18,121			21,679			24,253			(16	)%		(43	)%

Period-end loans, net of unearned
income (millions)		$22,382			$22,268			$22,105			$21,955			$21,717			1	%		3	%
Insured loans		987			847			730			730			753			7	%		20	%
Loans excluding insured loans		$21,395			$21,421			$21,375			$21,225			$20,964			*			2	%

Off-balance sheet commitments (millions) (b)		$7,202			$7,586			$7,587			$7,416			$7,305			(5	)%		(1	)%

ASSET QUALITY HIGHLIGHTS
Quarterly, Unaudited

																	2Q07 Change vs.
(Thousands)		*2Q07*			1Q07			4Q06			3Q06			2Q06			1Q07	2Q06

FHN Consolidated
Nonperforming loans ratio (a)			.57	%		.33	%		.37	%		.29	%		.28	%
Nonperforming assets ratio (b)			.81			.56			.58			.49			.45
Allowance to total loans			1.03			.99			.98			.94			.92
Allowance to loans excluding insured loans			1.07			1.03			1.01			.97			.95
Allowance to nonperforming loans (c)			179.59			299.93			261.10			323.39			325.69
Allowance to nonperforming assets (d)			126.60			175.83			168.66			192.40			204.58
Net charge-off ratio (e)			.41			.48			.25			.30			.26
Coverage ratio (f)			2.50x			2.07x			4.00x			3.15x			3.61x

Retail/Commercial Banking
Nonperforming assets ratio (b)			.75	%		.50	%		.52	%		.44	%		.40	%
Allowance to nonperforming assets			139.63			202.56			189.61			220.26			232.95

Mortgage Banking
Nonperforming assets ratio (g)			.03	%		.03	%		.02	%		.02	%		.03	%

HELOC and Real Estate Secured Installment Loans
Held to Maturity Originations
Whole-loan credit insured			8.66	%		9.22	%		8.17	%		.90	%		.94	%
Not insured			91.34			90.78			91.83			99.10			99.06
	FICO score distribution (not insured)
	>= 700		83.59	%		83.60	%		83.07	%		80.80	%		82.48	%
	660 - 699		11.15			11.51			11.96			13.35			13.16
	620 - 659		3.80			3.38			4.07			4.71			3.55
	< 620		1.45			1.52			.90			1.13			.81
	Average FICO score (not insured)		747			746			745			742			744
	Cumulative LTV distribution (not insured)
	<= 80%		59.43	%		63.13	%		60.14	%		56.71	%		58.44	%
	80.1%-90.0%		25.22			25.49			28.21			25.09			23.33
	> 90%		15.35			11.39			11.65			18.20			18.23
	Average CLTV (not insured)		74.11	%		72.95	%		73.82	%		75.79	%		76.40	%

BUSINESS SEGMENT HIGHLIGHTS
Quarterly, Unaudited

																2Q07 Change vs.
(Thousands)	*2Q07*			1Q07			4Q06			3Q06			2Q06			1Q07			2Q06

Retail/Commercial Banking
Total revenues**		$324,545			$327,075			$343,294			$344,424			$346,480			(1	)%		(6	)%
Provision for loan losses		36,847			28,493			23,263			23,549			18,361			29	%		101	%
Noninterest expenses		206,217			198,195			211,509			205,416			214,744			4	%		(4	)%
Pre-tax income		81,481			100,387			108,522			115,459			113,375			(19	)%		(28	)%
Provision for income taxes		22,774			30,258			33,682			35,470			29,581			(25	)%		(23	)%
Net income from continuing operations		58,707			70,129			74,840			79,989			83,794			(16	)%		(30	)%
Income/(loss) from discontinued operations, net of tax		179			240			187			(69	)		376			(25	)%		(52	)%
Net income		$58,886			$70,369			$75,027			$79,920			$84,170			(16	)%		(30	)%

Mortgage Banking
Total revenues**		$99,320			$94,077			$112,419			$111,642			$145,102			6	%		(32	)%
Provision for loan losses		(111	)		(7	)		(280	)		145			292		NM				(138	)%
Noninterest expenses		115,565			105,331			108,925			136,804			115,155			10	%		*
Pre-tax (loss)/income		(16,134	)		(11,247	)		3,774			(25,307	)		29,655			43	%		(154	)%
(Benefit)/provision for income taxes		(8,493	)		(11,782	)		319			(10,283	)		10,392			(28	)%		(182	)%
Net (loss)/income		$(7,641	)		$535			$3,455			$(15,024	)		$19,263		NM				(140	)%

Capital Markets
Total revenues**		$86,552			$83,092			$92,634			$96,967			$99,483			4	%		(13	)%
Noninterest expenses		73,846			79,726			84,075			81,778			83,629			(7	)%		(12	)%
Pre-tax income		12,706			3,366			8,559			15,189			15,854			277	%		(20	)%
Provision for income taxes		4,741			1,217			3,180			5,682			5,924			290	%		(20	)%
Net income		$7,965			$2,149			$5,379			$9,507			$9,930			271	%		(20	)%

Corporate
Total revenues**		$9,314			$16,363			$13,994			$16,515			$(2,455	)		(43	)%		(479	)%
Provision for loan losses		7,672			-			-			-			-		NM			NM
Noninterest expenses		61,612			19,760			27,121			28,901			9,483			212	%		550	%
Pre-tax loss		(59,970	)		(3,397	)		(13,127	)		(12,386	)		(11,938	)	NM				402	%
Income tax benefit		(22,883	)		(891	)		(5,733	)		(5,093	)		(2,884	)	NM				693	%
Net loss		$(37,087	)		$(2,506	)		$(7,394	)		$(7,293	)		$(9,054	)	NM				310	%

Total Consolidated
Total revenues**		$519,731			$520,607			$562,341			$569,548			$588,610			*			(12	)%
Provision for loan losses		44,408			28,486			22,983			23,694			18,653			56	%		138	%
Total noninterest expenses		457,240			403,012			431,630			452,899			423,011			13	%		8	%
Pre-tax income		18,083			89,109			107,728			92,955			146,946			(80	)%		(88	)%
(Benefit)/provision for income taxes		(3,861	)		18,802			31,448			25,776			43,013			(121	)%		(109	)%
Net income from continuing operations		21,944			70,307			76,280			67,179			103,933			(69	)%		(79	)%
Income/(loss) from discontinued operations, net of tax		179			240			187			(69	)		376			(25	)%		(52	)%
Net income		$22,123			$70,547			$76,467			$67,110			$104,309			(69	)%		(79	)%

RETAIL/COMMERCIAL BANKING
Quarterly, Unaudited

																2Q07 Change vs.
(Thousands)	*2Q07*			1Q07			4Q06			3Q06			2Q06			1Q07			2Q06

Income Statement
Net interest income		$217,896			$224,116			$228,955			$232,830			$232,496			(3	)%		(6	)%
Noninterest income		106,649			102,959			114,339			111,594			113,984			4	%		(6	)%
Divestitures		-			-			-			-			-
Securities (losses)/gains, net		-			-			-			-			-
Total revenue		324,545			327,075			343,294			344,424			346,480			(1	)%		(6	)%
Total noninterest expense		206,217			198,195			211,509			205,416			214,744			4	%		(4	)%
Provision		36,847			28,493			23,263			23,549			18,361			29	%		101	%
Pretax income		$81,481			$100,387			$108,522			$115,459			$113,375			(19	)%		(28	)%

Efficiency ratio		63.54	%		60.60	%		61.61	%		59.64	%		61.98	%

Balance Sheet
Average loans (millions)		$21,904			$21,592			$21,471			$21,382			$21,098			1	%		4	%
Other earning assets (millions)		585			557			413			465			547			5	%		7	%
Total earning assets (millions)		22,489			22,149			21,884			21,847			21,645			2	%		4	%
Total deposits (millions)		$12,156			$12,143			$12,085			$11,980			$11,760			*			3	%
Net interest margin		3.89	%		4.10	%		4.15	%		4.23	%		4.31	%

Noninterest Income Detail
Deposit transactions & cash mgmt		$43,067			$39,344			$43,299			$44,483			$42,740			9	%		1	%
Insurance commissions		7,863			9,586			8,912			10,404			12,731			(18	)%		(38	)%
Trust services & investment mgmt		10,671			9,733			10,469			9,642			10,858			10	%		(2	)%
Bankcard Income		6,007			5,701			6,079			6,164			6,097			5	%		(1	)%
Other service charges		5,496			5,460			5,014			4,638			5,343			1	%		3	%
Check clearing fees		1,284			1,212			1,386			1,594			1,679			6	%		(24	)%
Revenue from loan sales and
securitizations (a)		7,680			8,522			13,886			10,068			10,548			(10	)%		(27	)%
Miscellaneous revenue		24,581			23,401			25,294			24,601			23,988			5	%		2	%
Total noninterest income		$106,649			$102,959			$114,339			$111,594			$113,984			4	%		(6	)%

Key Statistics
Locations
Full-Service Financial Centers		233			231			229			221			215			1	%		8	%
First Tennesee		199			199			197			194			192			*			4	%
First Horizon Bank		34			32			32			27			23			6	%		48	%

Trust Assets
Total assets (millions)(b)		$12,954			$12,878			$12,472			$12,866			$11,541			1	%		12	%
Total managed assets (millions)(b)		6,811			6,700			6,546			6,270			6,223			2	%		9	%
NM - Not meaningful
* Amount is less than one percent.
Certain previously reported amounts have been reclassified to agree with current presentation.
(a) Includes gains from whole-loan sales and net revenue from asset securitizations
(b) Current quarter is an estimate

MORTGAGE BANKING
Quarterly, Unaudited

																2Q07 Change vs.
(Thousands)	*2Q07*			1Q07			4Q06			3Q06			2Q06			1Q07			2Q06

Income Statement
Net interest income		$24,353			$17,343			$20,857			$21,266			$25,494			40	%		(4	)%
Noninterest income
Net origination fees		67,281			63,641			69,230			64,248			110,416			6	%		(39	)%
Net servicing fees		(3,496	)		3,008			11,826			15,701			(727	)		(216	)%	NM
Other fees		11,182			10,085			10,506			10,427			9,919			11	%		13	%
Total noninterest income		74,967			76,734			91,562			90,376			119,608			(2	)%		(37	)%
Total revenue		99,320			94,077			112,419			111,642			145,102			6	%		(32	)%
Noninterest expense		115,565			105,331			108,925			136,804			115,155			10	%		*
Provision		(111	)		(7	)		(280	)		145			292		NM				(138	)%
Pretax (loss)/income		$(16,134	)		$(11,247	)		$3,774			$(25,307	)		$29,655			43	%		(154	)%

Efficiency ratio		116.36	%		111.96	%		96.89	%		122.54	%		79.36	%

Balance Sheet
Warehouse (millions)		$3,531			$3,030			$3,124			$3,173			$3,598			17	%		(2	)%
Other earning assets (millions)		995			796			825			866			894			25	%		11	%
Total earning assets (millions)		$4,526			$3,826			$3,949			$4,039			$4,492			18	%		1	%
Escrow balances (millions)		$2,032			$1,858			$2,000			$1,965			$1,903			9	%		7	%
Net interest margin		2.16	%		1.84	%		2.10	%		2.09	%		2.28	%
Warehouse Spread		1.14	%		1.12	%		1.24	%		1.18	%		1.44	%

Noninterest Expense Detail
Commissions & incentives		$50,660			$44,984			$47,428			$50,090			$54,831			13	%		(8	)%
FAS 91 cost deferral		(3,832	)		(1,816	)		(1,131	)		1,515			4,473		NM			NM
Other salaries & benefits		55,408			51,882			56,462			56,584			50,420			7	%		10	%
Total salaries & benefits		102,236			95,050			102,759			108,189			109,724			8	%		(7	)%
Contract labor & outsourcing		2,468			2,574			3,103			4,025			4,170			(4	)%		(41	)%
Equipment & occupancy		16,639			17,221			17,362			17,095			16,074			(3	)%		4	%
Foreclosure provision		2,225			1,611			1,042			(698	)		2,379			38	%		(6	)%
Other expenses		50,602			40,714			38,525			64,289			49,099			24	%		3	%
Total expenses before FAS 91 reclass		174,170			157,170			162,791			192,900			181,446			11	%		(4	)%
FAS 91 reclassification**		(62,996	)		(56,343	)		(57,575	)		(59,480	)		(69,334	)		12	%		(9	)%
Total noninterest expense before
segment allocations		111,174			100,827			105,216			133,420			112,112			10	%		(1	)%
Segment allocations		4,391			4,504			3,709			3,384			3,043			(3	)%		44	%
Total noninterest expense		$115,565			$105,331			$108,925			$136,804			$115,155			10	%		*
NM - Not meaningful
* Amount is less than one percent.
** See Glossary of Terms
Certain previously reported amounts have been reclassified to agree with current presentation.

MORTGAGE BANKING: ORIGINATION INCOME
Quarterly, Unaudited

																2Q07 Change vs.
(Thousands)	*2Q07*			1Q07			4Q06			3Q06			2Q06			1Q07			2Q06

Origination Income
Origination fees		$68,609			$58,755			$63,255			$65,132			$77,174			17	%		(11	)%
FAS 91 fee deferral		(2,436	)		(1,016	)		(225	)		1,318			1,523			140	%		(260	)%
Appraisal, final inspection,
credit report fees		7,860			6,544			6,840			7,119			7,901			20	%		(1	)%
Total origination fees		74,033			64,283			69,870			73,569			86,598			15	%		(15	)%
Secondary marketing income
Prime
OMSR, SRP		98,072			76,821			68,373			72,323			90,933			28	%		8	%
Marketing G/L (Trading Gains)		13,435			17,728			25,897			13,915			37,906			46	%		(32	)%
Concessions		(45,609	)		(34,350	)		(33,293	)		(34,233	)		(41,355	)		69	%		40	%
LOCOM		(6,880	)		(2,519	)		(1,629	)		(288	)		(398	)		173	%	NM
Subtotal Prime		59,018			57,680			59,348			51,717			87,086			2	%		(32	)%
Non-Prime
OMSR, SRP		(710	)		331			2,264			3,839			1,226			(315	)%		(158	)%
LOCOM		(1,604	)		(553	)		(2,164	)		(1,940	)		1,817			190	%		(188	)%
Recourse Provision*		(460	)		(1,757	)		(2,513	)		(3,457	)		3,023			(74	)%		(115	)%
Subtotal Non-Prime		(2,774	)		(1,979	)		(2,413	)		(1,558	)		6,066			40	%		(146	)%
Total Secondary Marketing income		56,244			55,701			56,935			50,159			93,152			1	%		(40	)%
FAS 91 Reclassification		(62,996	)		(56,343	)		(57,575	)		(59,480	)		(69,334	)		12	%		(9	)%
Total Origination Income		$67,281			63,641			$69,230			$64,248			$110,416			6	%		(39	)%

Margins
Marketing margin on deliveries (bps):
Prime
OMSR, SRP		134			130			113			116			129
Marketing G/L (Trading Gains)		18			30			43			22			54
Concessions		(62	)		(58	)		(55	)		(55	)		(59	)
LOCOM		(9	)		(4	)		(3	)		-			(1	)
Subtotal Prime		81			98			98			83			123
Non-Prime
OMSR, SRP		(130	)		25			118			164			37
LOCOM		(294	)		(41	)		(113	)		(83	)		56
Recourse Provision*		(84	)		(131	)		(131	)		(148	)		93
Subtotal Non-Prime		(508	)		(147	)		(126	)		(67	)		186
Total Marketing Margin on Deliveries		76			92			91			77			126
NM - Not meaningful
*Represents the reclassification from expense to secondary marketing income of expected loss provisions related to the recourse obligation on sales of non-prime loans.

MORTGAGE BANKING: ORIGINATION METRICS
Quarterly, Unaudited

																2Q07 Change vs.
($ in millions)	*2Q07*			1Q07			4Q06			3Q06			2Q06			1Q07			2Q06

Production
First lien production		$8,092			$6,302			$6,417			$6,351			$7,482			28	%		8	%

Breakdown by Product Type
Prime
Conventional Fixed		56	%		53	%		49	%		45	%		43	%
Conventional ARM		3	%		3	%		4	%		6	%		8	%
Jumbo Fixed		9	%		9	%		8	%		7	%		6	%
Jumbo ARM		8	%		6	%		7	%		7	%		7	%
Alt A		14	%		20	%		22	%		25	%		27	%
Government		7	%		7	%		7	%		5	%		6	%
Non Prime		1	%		2	%		2	%		4	%		2	%
Other		2	%		-			1	%		1	%		1	%

Breakdown by Payment Type
Fully amortizing		71	%		70	%		70	%		70	%		69	%
Interest only - fixed		18	%		20	%		14	%		10	%		10	%
Interest only - ARM		11	%		10	%		15	%		18	%		17	%
Option ARM's		-			-			1	%		2	%		4	%
Production Refinanced %		38	%		45	%		44	%		33	%		33	%
Production Purchased %		62	%		55	%		56	%		67	%		67	%
ARMs % (Excluding Gov't ARMS)		15	%		14	%		21	%		27	%		28	%

Sales Force
Total Sales Force		2,508			2,486			2,440			2,495			2,467

Warehouse/Pipeline
Ending Warehouse Balance		$2,950			$2,527			$2,347			$2,286			$2,587			17	%		14	%
Ending Pipeline Balance (Locked)		4,288			4,019			3,074			3,384			3,645			7	%		18	%

Loan Sales (Deliveries)
Prime		7,302			5,919			6,062			6,257			7,066			23	%		3	%
Non-Prime		55			134			192			233			325			(59	)%		(83	)%
Total Loan Sales		7,357			6,053			6,254			6,490			7,391			22	%		*

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. 2Q07 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. 2Q07 weighted average FICO score was 706.

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.
		2Q07 weighted average FICO score was 594.

Government:		FHA/VA loans that are eligible for GNMA securitizations and government guarantees. 2Q07 weighted average FICO score was 667.
NM - Not meaningful
* Amount is less than one percent.

MORTGAGE BANKING: SERVICING
Quarterly, Unaudited

																2Q07 Change vs.
(Thousands)	*2Q07*			1Q07			4Q06			3Q06			2Q06			1Q07			2Q06

Servicing Income
Gross Service Fees		$90,282			$100,077			$99,852			$98,594			$95,043
Guarantee Fees		(18,874	)		(18,570	)		(18,630	)		(15,778	)		(17,348	)
Sub-Service Fee Income		11			27			7			29			71
Lender Paid MI		(20	)		(2	)		(13	)		(24	)		(20	)
Net Service Fees		71,399			81,532			81,216			82,821			77,746			(12	)%		(8	)%
Early Payoff Interest Expense		(5,036	)		(4,749	)		(4,791	)		(3,718	)		(4,324	)
Ancillary Fees		7,509			7,951			7,521			7,112			6,820
Total Service Fees		73,872			84,734			83,946			86,215			80,242			(13	)%		(8	)%
Change in MSR Value - Runoff		(62,661	)		(61,698	)		(66,937	)		(60,326	)		(72,270	)		2	%		(13	)%
Net hedging results:
Change in MSR Value - Other than Runoff		115,739			(17,138	)		10,351			(133,067	)		69,564
MSR Hedge (Losses)/Gains		(116,955	)		8,773			(7,171	)		127,240			(72,104	)
Change in Trading Asset Value		28,003			(3,312	)		12			(13,628	)		3,044
Trading Asset Hedge (Losses)/Gains		(35,790	)		1,226			(844	)		13,940			(4,438	)
Option Expense on Servicing Hedges		(5,704	)		(9,577	)		(7,531	)		(4,673	)		(4,765	)
Total net hedging results		(14,707	)		(20,028	)		(5,183	)		(10,188	)		(8,699	)		(27	)%		69	%
Total Servicing Income		(3,496	)		3,008			11,826			15,701			(727	)		(216	)%		381	%

Key Servicing Metrics (millions)
Beginning Servicing Portfolio		$102,822			$101,370			$100,246			$99,304			$97,303
Additions to portfolio		7,778			6,237			6,333			6,238			7,332
Prepayments		(3,940	)		(3,645	)		(3,909	)		(3,476	)		(3,725	)
Amortization		(708	)		(696	)		(687	)		(692	)		(687	)
Service Release Sales		(336	)		(444	)		(613	)		(1,128	)		(919	)
Ending Servicing Portfolio (Owned)		$105,616			$102,822			$101,370			$100,246			$99,304			3	%		6	%
Avg. Servicing Portfolio (Owned)		$104,208			$101,992			$100,811			$99,484			$98,342			2	%		6	%
Average Loans Serviced (#)		643,314			636,496			633,293			629,897			626,527			1	%		3	%

Portfolio Product Mix (Average)
GNMA		8	%		8	%		8	%		8	%		8	%
FNMA/FHLMC		64	%		64	%		64	%		64	%		65	%
Private		25	%		25	%		25	%		25	%		24	%
Sub-Total		97	%		97	%		97	%		97	%		97	%
Warehouse		3	%		3	%		3	%		3	%		3	%
Total		100	%		100	%		100	%		100	%		100	%

Other Portfolio Statistics
Net Service Fees - Annualized (bps)		27			32			32			33			32
Total Service Fees - Annualized (bps)		28			33			33			35			33

Ancillary Income per Loan (Annualized)		$46.68			$49.97			$47.51			$45.16			$43.54			(7	)%		7	%
Servicing Cost per Loan (Annualized)		$49.51			$49.44			$49.45			$49.36			$50.60			*			(2	)%

Average Servicing Asset (millions)**		1,371			1,505			1,452			1,532			1,503
Servicing Book Value (bps)		132			148			144			154			153

Change in MSR Asset /
Average Servicing Asset		19	%		19	%		18	%		17	%		20	%
Run-Off Rate - Annualized		18	%		17	%		18	%		17	%		18	%

CAPITAL MARKETS
Quarterly, Unaudited

																2Q07 Change vs.
(Thousands)	*2Q07*			1Q07			4Q06			3Q06			2Q06			1Q07			2Q06

Income Statement
Net interest (expense)/income		$(6	)		$(2,068	)		$781			$2,906			$126			(100	)%		(105	)%
Incremental cost of equity		(3,859	)		(3,769	)		(4,260	)		(4,437	)		(4,768	)		2	%		(19	)%
Net interest expense		(3,865	)		(5,837	)		(3,479	)		(1,531	)		(4,642	)		(34	)%		(17	)%
Noninterest income:
Fixed income		48,258			46,313			46,235			41,503			41,843			4	%		15	%
Other product revenue		42,159			42,616			49,878			56,995			62,282			(1	)%		(32	)%
Total noninterest income		90,417			88,929			96,113			98,498			104,125			2	%		(13	)%
Total revenue		86,552			83,092			92,634			96,967			99,483			4	%		(13	)%
Noninterest expense		73,846			79,726			84,075			81,778			83,629			(7	)%		(12	)%
Pretax income		$12,706			$3,366			$8,559			$15,189			$15,854			277	%		(20	)%

Efficiency ratio		85.32	%		95.95	%		90.76	%		84.34	%		84.06	%

Balance Sheet
Trading inventory (millions)		$2,546			$2,409			$2,513			$2,523			$2,356			6	%		8	%
Other earning assets (millions)		1,442			1,633			1,889			2,231			2,262			(12	)%		(36	)%
Total earning assets (millions)		$3,988			$4,042			$4,402			$4,754			$4,618			(1	)%		(14	)%

CORPORATE
Quarterly, Unaudited

																2Q07 Change vs.
(Thousands)	*2Q07*			1Q07			4Q06			3Q06			2Q06			1Q07			2Q06

Income Statement
Net interest income		$1,255			$1,930			$(213	)		$(841	)		$308			(35	)%		307	%
Net interest income from
deferred compensation		(207	)		(133	)		(123	)		(103	)		(58	)		56	%		257	%
Total net interest income		1,048			1,797			(336	)		(944	)		250
Noninterest income		1,677			3,028			3,140			1,754			341			(45	)%		392	%
Noninterest income from
deferred compensation		7,603			1,265			8,188			6,948			(5,939	)		501	%	NM
Total noninterest income		9,280			4,293			11,328			8,702			(5,598	)		116	%	NM
Securities (losses)/gains, net		(1,014	)		10,273			3,002			8,757			2,893			(110	)%		(135	)%
Total revenue		9,314			16,363			13,994			16,515			(2,455	)		(43	)%		(479	)%
Noninterest expense		49,706			17,391			16,806			20,069			15,154			186	%		228	%
Deferred compensation expense		11,906			2,369			10,315			8,832			(5,671	)		403	%		(310	)%
Total noninterest expense		61,612			19,760			27,121			28,901			9,483			212	%		550	%
Provision		7,672			-			-			-			-
Pretax loss		$(59,970	)		$(3,397	)		$(13,127	)		$(12,386	)		$(11,938	)	NM				402	%

GLOSSARY OF TERMS




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.

RESTRUCTURING, REPOSITIONING, AND EFFICIENCY INITIATIVES
Unaudited


(Thousands)

Summary of Phases

				Expected
		Period Announced	Objective	Annualized Benefit
	Phase 1:	1Q06	Improved profitability by $50 million	50,000

	Phase 2:	1Q07	Improve profitability by $40 million through right-sizing	40,000
			businesses, centralizing procurement

	Phase 3:	2Q07	Improve profitability run-rate by $50 million by 1Q08	85,000

			Total by 1Q08	175,000

Benefits (Phases 2 & 3)

	By Category
			Expected
	Category	Key Initiatives	Annualized Benefit
	Organization & Compensation	Consolidating functional areas	75,000
		Increasing managerial span of control
		Rationalizing incentive compensation
		Right-sizing mortgage and capital markets

	Procurement & Multi-sourcing	Centralizing procurement	25,000
		Outsourcing back office processes and IT

	Repositioning of Non-Core	Redesigning non-prime business	15,000
	Businesses	Exiting coin merchandising business

	Other	Consolidating facilities	10,000
		Divesting non-strategic loan portfolios
		Streamlining service processes

		Total by 1Q08	125,000

By Business Line
			% of Expected
Business Line			Annualized Benefit
Retail/Commercial Banking			40%
Mortgage Banking			40%
Capital Markets			15%
Corporate			5%
	Total		100%

By Quarter
		Cumulative Quarterly		Cumulative Annualized
Quarter		Pre-Tax Benefit		Pre-Tax Benefit
1Q07		3,800		15,200
2Q07		6,000		24,000
3Q07
4Q07
1Q08

Charges for Restructuring, Repositioning, and Efficiency

	2Q07 Actual:	$39.3 million	By Income Statement Line Item	2Q07 Actual
	3Q07 & 4Q07 Estimate*:	$50-60 million	Provision for loan losses	7,700
			Noninterest expense
			Employee compensation, incentives and benefits	8,000
			Occupancy	3,700
	All charges booked in Corporate Segment		Equipment rentals, depreciation and maintenance	5,200
			All other expense	14,700
			Total Income before income taxes	(39,300)

* Estimate based on plans to date. Planning process is not yet complete. Estimates of charges and benefits do not include impacts from possible sale of First Horizon bank branches.

2Q07 Key Impacts
(a)	Includes a portion of charges for $39.3 million, see Restructuring, Repositioning, and Efficiency Inititatives page for further detail of effect
(b)	Various impacts of legal settlements, noninterest income includes $3.0 million Capital Markets benefit and noninterest expense includes $8.4 million from Mortgage Banking
(c)	Includes impact from deferred compensation income or expense, see Corporate segment page for further detail
(d)	Effective tax rate for second quarter 2007 predominately due to the effect of permanent items and the current level of pre-tax income, reflects $3.1 million for the favorable resolution of outstanding issues

2Q07 Key Impacts
(a)	Noninterest income from deferred compensation should be assessed in relation to deferred compensation expense recognized in employee
	compensation, incentives and benefits, see Corporate segment page for further detail
(b)	Various impacts of legal settlements, noninterest income includes $3.0 million Capital Markets benefit and noninterest expense includes $8.4 million from Mortgage Banking
(c)	Includes a portion of charges for $14.7 million related to restructuring, repositioning and efficiency inititatives

NM - Not meaningful
* Amount is less than one percent.
(a) Includes loans held for sale.
(b) Amount of off-balance sheet commitments for which a reserve has been provided.

NM - Not meaningful
(a) Ratio is nonperforming loans in the loan portfolio to total loans
(b) Ratio is nonperforming assets related to the loan portfolio to total loans plus foreclosed real estate and other assets
(c) Ratio is allowance to nonperforming loans in the loan portfolio
(d) Ratio is allowance to nonperforming assets related to the loan portfolio
(e) Ratio is annualized net charge-offs to average total loans
(f) Ratio is allowance to annualized net charge-offs
(g) Ratio is nonperforming assets to unpaid principal balance of servicing portfolio

CAPITAL HIGHLIGHTS
Quarterly, Unaudited

																2Q07 Change vs.
(Dollars in millions, except per share amounts)	*2Q07*			1Q07			4Q06			3Q06			2Q06			1Q07			2Q06

Tier 1 Capital (a)		$2,711.4			$2,739.1			$2,696.3			$2,660.2			$2,612.2			(1	)%		4	%
Tier 2 Capital (a)		1,316.2			1,324.0			1,320.1			1,338.2			1,331.2			(1	)%		(1	)%
Total Capital (a)		$4,027.6			$4,063.1			$4,016.4			$3,998.4			$3,943.4			(1	)%		2	%

Risk-Adjusted Assets (a)		$31,644.1			$31,368.0			$30,405.4			$31,583.6			$30,030.8			1	%		5	%

Tier 1 Ratio (a)		8.57	%		8.73	%		8.87	%		8.42	%		8.70	%
Tier 2 Ratio (a)		4.16			4.22			4.34			4.24			4.43
Total Capital Ratio (a)		12.73	%		12.95	%		13.21	%		12.66	%		13.13	%

Leverage Ratio (a)		7.00	%		7.15	%		6.94	%		6.80	%		6.86	%
Shareholders' Equity/Assets Ratio (b)		6.42			6.48			6.49			6.26			6.52

Book Value		$19.43			$19.88			$19.61			$20.06			$19.59