Exhibit 99.1

THIRD QUARTER 2007

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
Impacts of Credit Market Illiquidity				5
Consolidated Results
	Income Statement
		Summary Income Statement		6
		Income Statement		7
		Other Income and Other Expense		8
	Balance Sheet
		Period End Balance Sheet		9
		Average and Period End Loans		10
		Average Balance Sheet		11
			Average Balance Sheet: Income & Expense	12
			Average Balance Sheet: Yields & Rates	13
	Mortgage Servicing Rights			14
Credit Quality
		Asset Quality Highlights - Allowance Detail		15
		Asset Quality Highlights - Key Ratios & Metrics		16
		Asset Quality Highlights - Key Portifolios		17
Business Segment Detail
		Segment Highlights		18
		Retail/Commercial Banking		19
		Mortgage Banking		20
			Mortgage Banking: Origination Income	21
			Mortgage Banking: Origination Metrics	22
			Mortgage Banking: Servicing	23
		Capital Markets		24
		Corporate		25
Capital Highlights				26
Glossary of Terms				27
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.

PERFORMANCE HIGHLIGHTS
(Third Quarter 2007 vs. Second Quarter 2007)
Consolidated Results
-  Making progress with efficiency initiatives and business restructuring
-  Profitability growth in Tennessee banking franchise
-  Reducing exposure to real estate-related businesses, freeing up capital and creating more predictable earnings base
-  Credit market illiquidity negatively impacted current quarter earnings by approximately $65 million
- Average deposits decreased 8%
	- $2 billion shift in wholesale borrowings from short-term CDs to FHLB advances in response to illiquidity, higher cost in    wholesale CD market
- Average loans declined 1%
- Consolidated net interest margin increased to 2.87% from 2.79%
Retail/Commercial Banking
- Net interest margin remained flat at 3.88% in third quarter compared to 3.89% in second quarter
- Noninterest income declined 11%
	- LOCOM adjustments on consumer loans (HELOCs and second liens) recognized in current quarter to reflect market illiquidity
	- Only two sales of second lien production during the third quarter, no HELOC sales were executed
- Increased provision for loan losses reflects growth in NPAs
- Noninterest expense decreases from lower personnel costs
	- Lower variable compensation costs from reduced loan originations and effect of efficiency initiatives
- Credit market dynamics compelled retention of consumer loan production
	- $222.3 million of consumer loans in held-for-sale for which a sale had been anticipated during the quarter
	- Approximately $70 million of consumer loans which would have been considered held-for-sale (or sold) in prior quarters    in held-to-maturity
- Signed agreements for sale of 34 First Horizon Bank branches in Virginia, Maryland, Georgia and Texas
	- Loans of $565.5 million and deposits of $474.8 million transferred to held-for-sale status
Mortgage Banking
- Decreased origination income
	- 18% decrease in production and 1% increase in deliveries
	- Gain (loss) on sale margin declined to (33) basis points from 76 basis points
		- Trading losses caused by spread widening on non-agency eligible production
		- LOCOM adjustments made to reflect current market valuations
- Improved hedging results due to widening spreads between mortgage and swap rates
	- Positively impacted earnings by $22.0 million vs. $14.7 million negative effect in second quarter
- Net interest income declines due to smaller warehouse and escrow balances which is partially offset by an increase in     warehouse spread
- Decrease in servicing runoff to $49.0 million for third quarter from $62.7 million in prior quarter
	- Results from decreased opportunity for non-conforming loans to refinance due to increased interest rates
- Noninterest expense declined to $108.6 million in third quarter from $115.6 million in second quarter
	- Recognition of $8.4 million legal settlement within noninterest expense in second quarter
Capital Markets
- Fixed income revenues were $46.0 million in current quarter compared to $48.3 million in prior quarter
	- Some increase in activity experienced late in third quarter as Federal Reserve lowered rates resulting in a steeper yield curve
- Other product revenues decline significantly due to market illiquidity
	- Only a small pooled trust preferred transaction executed
		- Profitability associated with the pooled trust preferred product declined approximately $15 million compared to prior quarter
		- $201.6 million of trust preferred loans classified as held-to-maturity
	- Legal settlement recovery of $3.0 million recorded in second quarter
- Decreases in noninterest expense result from lower production levels
Corporate Segment
- $32.8 million recognized for restructuring, repositioning and efficiency initiatives (detail on next page)
	- Current quarter included $13.9 million of intangible impairment related to the sale of First Horizon Bank branches
	- $39.3 million recognized in second quarter, including $7.7 million of provision
- Net securities losses of $1.1 million in second quarter
Taxes
- Negative $6.6 million effect of writing down non-deductible goodwill associated with pending sale of First Horizon Bank branches
- Positive $7.1 million effect from permanent tax credits
Asset Quality
- Provisioning declined slightly to $43.3 million in the current quarter compared to $44.4 million in second quarter
	- Prior quarter provision included $7.7 million of losses to reflect sale price of non-strategic loan portfolio
	- Continuing to provide for expected losses in excess of current period net charge offs
- Net charge offs were 57 basis points due to deterioration of national construction loans
- NPAs increased to 113 basis points from 81 basis points
	- Primarily represents deterioration in home builder and condominium construction loans
	- NPAs associated with one-time close loans also contributed
- Allowance as a percentage of loans ratio increased to 108 basis points from 103 basis points in prior quarter

3

EFFICIENCY AND RESTRUCTURING INITIATIVES
Unaudited
(Thousands)
Summary of Key Initiatives
				Expected Annualized
	Area	Key Components		Pre-Tax Benefit
	Enterprise Efficiency Initiatives	Organization and compensation redesign		$175 Million
	(3 Phases)	Procurement & multisourcing
		Repositioning non-core businesses
		Other (facilities, process streamlining, loan divestiture)
	First Horizon Banks Divestiture	Selling 34 full-service locations in VA, MD, GA, TX		$30 - 40 Million
	Mortgage Restructuring	Eliminating bottom half of retail sales force
		Reducing management & wholesale AEs
		Decreasing support staff and back-office costs
		Closing 50-60 offices
				$30 - 40 Million
	Downsizing National Lending	Reducing consumer and construction sales forces
		Decreasing support staff and back-office costs
		Cutting network of national FSMs

Benefits			Estimated Benefits by Business Line
		Expected Timing to Fully Realize	Retail/Comm.		Capital
	Area	Annual Pre-Tax Benefits	Bank	Mortgage	Markets	Corporate
	Enterprise Efficiency Initiatives	In run-rate by 1Q08	40%	40%	15%	5%
	First Horizon Banks Divestiture	By the end of 4Q07, with some in 1Q08	100%
	Mortgage Restructuring	By end of 4Q07		100%
	Downsizing National Lending	Majority by 4Q07; remainder over 2008	100%

Charges for Restructuring, Repositioning, and Efficiency
	By Income Statement Impact	3Q07	2Q07
	Provision for loan losses	-	7,700
	Noninterest expense
	Employee compensation, incentives, and benefits	9,300	8,000	4Q07 & 1Q08 Estimate:
	Occupancy	5,100	3,700	- Charges	($20-30 million)
	Equipment rentals, depreciation, and maintenance	800	5,200	- Divestiture gains	up to $40 million
	All other expense	17,600	14,700
	Total Income before income taxes	(32,800)	(39,300)

4

IMPACTS OF CREDIT MARKET ILLIQUIDITY
Unaudited
(Thousands)
Summary of Third Quarter 2007 Impacts on Credit Market Disruptions
					Approximate
					3Q07
	Business Line	Key Impacts			Pre-Tax Impact
	Mortgage	Gain-on-sale negatively impacted by intra-mortgage spread widening			($45 Million)
		Trading losses on sold production
		LOCOM adjustments made to reflect current market valuations
		MSR hedging results improved from widening mortgage-swap spreads
		MSR run-off slowed (benefited) as coupon rates rose
	Capital Markets	CDO markets disrupted due to credit illiquidity			($15 Million)
		Reduced demand for pooled trust preferred securities
		Completed only smaller pooled trust preferred issuance of $330 million
		Minimal LOCOM adjustment to trust preferred warehouse
	Retail/Commercial Bank	Demand for securitized consumer home equity loans diminished significantly			($5 Million)
		LOCOM adjustments on consumer loans (HELOCs and second liens)
		Only two sales of second lien production; no HELOC sales were executed
			Estimated Total 3Q07 Impact		($65 Million)

5

CONSOLIDATED SUMMARY INCOME STATEMENT
Quarterly, Unaudited
																3Q07 Change vs.
(Thousands)	3Q07			2Q07			1Q07			4Q06			3Q06			2Q07			3Q06
Net interest income	$	237,804		$	239,432		$	237,419		$	245,997		$	251,621			(1	)%		(5	)%
Noninterest income		203,475			281,313			272,915			313,342			309,170			(28	)%		(34	)%
Securities (losses)/gains, net		-			(1,014	)		10,273			3,002			8,757		NM			NM
Total revenue		441,279			519,731			520,607			562,341			569,548			(15	)%		(23	)%
Noninterest expense		421,622			457,240			403,012			431,630			452,899			(8	)%		(7	)%
Provision		43,352			44,408			28,486			22,983			23,694			(2	)%		83	%
Pretax (loss)/income		(23,695	)		18,083			89,109			107,728			92,955			(231	)%		(125	)%
(Benefit)/provision for income taxes		(9,330	)		(3,861	)		18,802			31,448			25,776			142	%		(136	)%
(Loss)/income from continuing operations		(14,365	)		21,944			70,307			76,280			67,179			(165	)%		(121	)%
Income/(loss) from discontinued operations, net of tax		209			179			240			187			(69	)	NM			NM
Net (loss)/income	$	(14,156	)	$	22,123		$	70,547		$	76,467		$	67,110			(164	)%		(121	)%
Common Stock Data
Diluted EPS from continuing operations	$	(.11	)	$	.17		$	.55		$	.60		$	.53			(165	)%		(121	)%
Diluted EPS		(.11	)		.17			.55			.60			.53			(164	)%		(121	)%
Diluted shares		127,782			128,737			128,704			127,784			127,523			(1	)%		*
Period-end shares outstanding		126,388			126,237			125,749			124,866			124,467			*			2	%
Dividends declared per share	$	.45		$	.45		$	.45		$	.45		$	.45			-			-
Key Ratios & Other
Return on average assets		(.15	)%		.23	%		.74	%		.77	%		.67	%
Return on average equity		(2.31	)%		3.57	%		11.61	%		12.08	%		10.90	%
Net interest margin		2.87	%		2.79	%		2.84	%		2.85	%		2.89	%
Tax rate	NM			NM				21.10	%		29.19	%		27.73	%
Efficiency ratio		95.55	%		87.98	%		77.41	%		76.76	%		79.52	%
FTE employees		11,052			11,903			12,018			12,131			12,324			(7	)%		(10	)%

NM - Not meaningful

* Amount is less than one percent.

6

CONSOLIDATED INCOME STATEMENT
Quarterly, Unaudited
														3Q07 Change vs.
(Thousands)	3Q07			2Q07			1Q07		4Q06		3Q06			2Q07			3Q06
Interest income	$	582,735		$	594,903		$	583,185	$	604,562	$	612,598			(2	)%		(5	)%
Less interest expense		344,931			355,471			345,766		358,565		360,977			(3	)%		(4	)%
Net interest income		237,804			239,432			237,419		245,997		251,621			(1	)%		(5	)%
Provision for loan losses		43,352			44,408			28,486		22,983		23,694			(2	)%		83	%
Net interest income after
provision for loan losses  (c)		194,452			195,024			208,933		223,014		227,927			*			(15	)%
Noninterest income:
Capital markets		63,722			85,054			87,113		92,809		95,215			(25	)%		(33	)%
Mortgage banking		39,022			71,300			73,097		87,524		85,935			(45	)%		(55	)%
Deposit transactions
and cash management		44,863			43,079			39,358		43,317		44,503			4	%		1	%
Revenue from loan sales and securitizations		4,774			9,615			9,663		16,276		11,830			(50	)%		(60	)%
Insurance commissions		6,747			7,674			9,789		8,951		10,534			(12	)%		(36	)%
Trust services and investment
management		9,922			10,628			9,688		10,424		9,609			(7	)%		3	%
Securities (losses)/gains, net		-			(1,014	)		10,273		3,002		8,757		NM			NM
Other  (d) (e)		34,425			53,963			44,207		54,041		51,544			(36	)%		(33	)%
Total noninterest income		203,475			280,299			283,188		316,344		317,927			(27	)%		(36	)%
Adjusted gross income after
provision for loan losses		397,927			475,323			492,121		539,358		545,854			(16	)%		(27	)%
Noninterest expense:
Employee compensation,
incentives and benefits (a) (c) (e)		236,683			258,191			246,343		257,397		260,351			(8	)%		(9	)%
Occupancy  (a) (c)		34,778			33,402			28,784		29,298		29,745			4	%		17	%
Equipment rentals, depreciation
and maintenance  (a) (c)		17,270			21,791			17,613		17,867		17,893			(21	)%		(3	)%
Operations services (a)		18,774			17,457			17,821		17,550		17,976			8	%		4	%
Communications and courier  (a)		10,959			10,746			11,540		11,978		12,950			2	%		(15	)%
Amortization of intangible assets		2,647			2,623			2,825		2,460		3,233			1	%		(18	)%
Other  (a) (c) (d)		100,511			113,030			78,086		95,080		110,751			(11	)%		(9	)%
Total noninterest expense		421,622			457,240			403,012		431,630		452,899			(8	)%		(7	)%
Pretax (loss)/income		(23,695	)		18,083			89,109		107,728		92,955			(231	)%		(125	)%
(Benefit)/provision for income taxes (b) (f)		(9,330	)		(3,861	)		18,802		31,448		25,776			142	%		(136	)%
(Loss)/income from continuing operations	$	(14,365	)		21,944			70,307		76,280		67,179			(165	)%		(121	)%
Income/(loss) from discontinued operations,
net of tax		209			179			240		187		(69	)	NM			NM
Net (loss)/income	$	(14,156	)	$	22,123		$	70,547	$	76,467	$	67,110			(164	)%		(121	)%

* Amount is less than one percent.

NM - Not meaningful

3Q07 Key Impacts
(a)	Includes a portion of charges for $32.8 million, see Restructuring, Repositioning and Efficiency Initiatives page for further details which reflects $13.9 million of intangible impairment related to the sale of First Horizon Bank branches and $3.1 million of impairment charges for long term assets
(b)	Effective tax rate for third quarter includes the $6.6 million negative effect of writing down non-deductible goodwill associated with the sale of First Horizon Bank branches, offset by $7.1 milion of permanent tax credits
2Q07 Key Impacts
(c)	Includes a portion of charges for $39.3 million, see Restructuring, Repositioning and Efficiency Initiatives page for further detail of effect
(d)	Various impacts of legal settlements, noninterest income includes $3.0 million Capital Markets benefit and noninterest expense includes $8.4 million from Mortgage Banking
(e)	Includes impact from deferred compensation income or expense, see Corporate segment page for further detail
(f)	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

7

OTHER INCOME AND OTHER EXPENSE
Quarterly, Unaudited
													3Q07 Change vs.
(Thousands)	3Q07			2Q07		1Q07		4Q06		3Q06			2Q07			3Q06
Other Income
Brokerage management fees and
commissions	$	9,189		$	10,263	$	9,631	$	9,434	$	8,545			(10	)%		8	%
Bankcard income		6,329			6,319		6,005		6,386		6,441			*			(2	)%
Bank owned life insurance		6,260			6,250		5,965		6,054		5,216			*			20	%
Remittance processing		3,171			3,330		3,500		3,576		3,525			(5	)%		(10	)%
Deferred compensation (a)		526			7,603		1,265		8,188		6,948			(93	)%		(92	)%
Other service charges		3,581			3,677		3,681		3,556		3,622			(3	)%		(1	)%
Letter of credit		1,864			1,495		1,620		1,712		1,659			25	%		12	%
ATM interchange fees		2,200			2,131		1,917		1,801		1,809			3	%		22	%
Reinsurance fees		2,418			2,056		1,784		2,075		1,595			18	%		52	%
Check clearing fees		1,275			1,284		1,212		1,386		1,593			(1	)%		(20	)%
Electronic banking fees		1,631			1,639		1,655		1,505		1,485			*			10	%
Federal flood certifications		1,207			1,383		1,123		1,121		1,214			(13	)%		(1	)%
Other  (b) (d)		(5,226	)		6,533		4,849		7,247		7,892			(180	)%		(166	)%
Total	$	34,425		$	53,963	$	44,207	$	54,041	$	51,544			(36	)%		(33	)%
Other Expense
Advertising and public relations	$	10,475		$	11,312	$	10,262	$	11,162	$	13,272			(7	)%		(21	)%
Legal and professional fees  (c) (e)		13,532			14,130		11,591		12,046		11,071			(4	)%		22	%
Computer software   (c)		9,334			9,237		9,186		8,608		8,959			1	%		4	%
Travel and entertainment  (c) (e)		7,065			7,391		5,814		8,518		8,164			(4	)%		(13	)%
Contract employment  (c) (e)		5,770			5,549		5,022		5,836		6,955			4	%		(17	)%
Distributions on preferred stock
of subsidiary		4,761			4,701		4,658		4,769		4,874			1	%		(2	)%
Low income housing expense		4,483			5,082		4,752		6,056		3,968			(12	)%		13	%
Supplies  (c)		3,382			3,430		3,601		3,177		3,961			(1	)%		(15	)%
Loan closing costs		4,857			3,623		3,024		2,297		3,835			34	%		27	%
Customer relations		2,605			2,420		1,942		2,287		2,123			8	%		23	%
Other insurance and taxes		1,751			2,003		2,403		2,265		2,269			(13	)%		(23	)%
Employee training and dues		1,703			2,028		1,648		1,533		1,658			(16	)%		3	%
Loan insurance expense		1,123			1,167		1,247		721		1,784			(4	)%		(37	)%
Fed services fees		1,540			1,599		1,445		1,445		1,613			(4	)%		(5	)%
Complimentary check expense		1,237			1,324		1,291		1,329		1,357			(7	)%		(9	)%
Foreclosed real estate		1,393			3,492		2,292		1,675		(86	)		(60	)%	NM
Bank examination costs		1,141			1,091		1,130		1,102		1,103			5	%		3	%
Deposit insurance premium		615			606		883		765		737			1	%		(17	)%
Other  (c) (d) (e)		23,744			32,845		5,895		19,489		33,134			(28	)%		(28	)%
Total	$	100,511		$	113,030	$	78,086	$	95,080	$	110,751			(11	)%		(9	)%

* Amount is less than one percent.

NM - Not meaningful

3Q07 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)	Includes $7.0 million of additional LOCOM adjustments on HELOC and second lien loans as a compared to second quarter
(c)	Includes a portion of charges for $17.6 million related to restructuring, repositioning and efficiency initiatives which reflects $13.9 million of intangible impairment related to the sale of First Horizon Bank branches
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
(d)	Various impacts of legal settlements, noninterest income includes $3.0 million Capital Markets benefit and noninterest expense includes $8.4 million from Mortgage Banking
(e)	Includes a portion of charges for $14.7 million related to restructuring, repositioning and efficiency initiatives

8

CONSOLIDATED PERIOD-END BALANCE SHEET
Quarterly, Unaudited
																3Q07 Change vs.
(Thousands)	3Q07			2Q07			1Q07			4Q06			3Q06			2Q07			3Q06
Assets
Investment securities	$	3,076,360		$	3,374,853		$	3,310,960		$	3,923,484		$	4,014,003			(9	)%		(23	)%
Loans held for sale		2,900,464			3,330,489			2,921,629			2,873,577			2,798,281			(13	)%		4	%
Loans held for sale-divestiture (a)		565,492			-			-			-			-		NM			NM
Loans, net of unearned income		21,973,004			22,382,303			22,268,190			22,104,905			21,955,030			(2	)%		*
Federal funds sold and securities
purchased under agreements to resell		1,096,624			1,121,052			1,757,365			1,202,537			1,992,426			(2	)%		(45	)%
Investment in bank time deposits		30,993			58,241			15,739			18,037			17,798			(47	)%		74	%
Trading securities		1,734,653			2,291,704			2,443,342			2,230,745			2,512,744			(24	)%		(31	)%
Total earning assets		31,377,590			32,558,642			32,717,225			32,353,285			33,290,282			(4	)%		(6	)%
Cash and due from banks		936,707			799,428			861,534			943,555			872,528			17	%		7	%
Capital markets receivables		1,219,720			1,240,456			1,144,135			732,282			1,027,927			(2	)%		19	%
Mortgage servicing rights, net		1,470,589			1,522,966			1,540,041			1,533,942			1,498,341			(3	)%		(2	)%
Goodwill		267,228			279,825			275,582			275,582			274,534			(5	)%		(3	)%
Other intangible assets, net		58,738			61,947			61,672			64,530			70,546			(5	)%		(17	)%
Premises and equipment, net		411,515			438,807			445,301			451,708			441,659			(6	)%		(7	)%
Real estate acquired by foreclosure		75,656			67,499			68,613			63,519			65,224			12	%		16	%
Discontinued assets		-			-			358			416			939,728		NM			NM
Allowance for loan losses		(236,611	)		(229,919	)		(220,806	)		(216,285	)		(206,829	)		3	%		14	%
Other assets		1,874,497			1,654,433			1,935,111			1,715,725			1,802,243			13	%		4	%
Other assets-divestiture (a)		22,623			-			-			-			-		NM			NM
Total assets	$	37,478,252		$	38,394,084		$	38,828,766		$	37,918,259		$	40,076,183			(2	)%		(6	)%
Liabilities and Shareholders' Equity
Deposits
Savings	$	3,592,732		$	3,520,757		$	3,607,674		$	3,354,180		$	3,256,680			2	%		10	%
Other interest-bearing deposits		1,674,624			1,822,076			1,941,422			1,969,700			1,742,276			(8	)%		(4	)%
Time deposits		2,822,792			2,885,307			2,876,257			2,924,050			2,906,424			(2	)%		(3	)%
Interest-bearing deposits-divestiture (a)		361,368			-			-			-			-		NM			NM
Total interest-bearing core deposits		8,451,516			8,228,140			8,425,353			8,247,930			7,905,380			3	%		7	%
Noninterest-bearing deposits		4,928,233			5,516,735			5,506,791			5,447,673			5,458,935			(11	)%		(10	)%
Noninterest-bearing deposits-divestiture (a)		72,404			-			-			-			-		NM			NM
Total core deposits		13,452,153			13,744,875			13,932,144			13,695,603			13,364,315			(2	)%		1	%
Certificates of deposit $100,000 and more (b)		5,142,169			8,016,808			8,559,807			6,517,629			11,920,226			(36	)%		(57	)%
Certificates of deposit $100,000 and more -divestiture (a)		41,037			-			-			-			-		NM			NM
Total deposits		18,635,359			21,761,683			22,491,951			20,213,232			25,284,541			(14	)%		(26	)%
Federal funds purchased and securities
sold under agreements to repurchase		4,039,827			3,841,251			3,173,476			4,961,799			2,416,974			5	%		67	%
Trading liabilities		543,060			658,533			678,796			789,957			847,453			(18	)%		(36	)%
Commercial paper and other short-term borrowings (b)		2,396,316			246,815			819,768			1,258,513			926,292			871	%		159	%
Term borrowings		6,015,954			5,828,138			5,968,789			5,243,961			5,226,772			3	%		15	%
Other collateralized borrowings		784,599			821,966			559,226			592,399			260,416			(5	)%		201	%
Total long-term debt		6,800,553			6,650,104			6,528,015			5,836,360			5,487,188			2	%		24	%
Capital markets payables		1,053,349			1,144,029			1,088,340			799,489			989,332			(8	)%		6	%
Discontinued liabilities		-			-			32,608			6,966			6,977		NM			NM
Other liabilities		1,253,295			1,332,910			1,205,859			1,294,283			1,311,628			(6	)%		(4	)%
Other liabilities-divestiture (a)		39,389			-			-			-			-		NM			NM
Total liabilities		34,761,148			35,635,325			36,018,813			35,160,599			37,270,385			(2	)%		(7	)%
Preferred stock of subsidiary		295,277			295,277			295,277			295,270			295,274			*			*
Shareholders' Equity
Common stock		78,992			78,898			78,593			78,041			77,792			*			2	%
Capital surplus		360,016			352,138			341,491			312,521			301,857			2	%		19	%
Undivided profits		2,048,689			2,120,014			2,155,007			2,144,276			2,124,312			(3	)%		(4	)%
Accumulated other comprehensive (loss)/income, net		(65,870	)		(87,568	)		(60,415	)		(72,448	)		6,563			(25	)%	NM
Total shareholders' equity		2,421,827			2,463,482			2,514,676			2,462,390			2,510,524			(2	)%		(4	)%
Total liabilities and shareholders' equity	$	37,478,252		$	38,394,084		$	38,828,766		$	37,918,259		$	40,076,183			(2	)%		(6	)%

NM - Not meaningful

* Amount is less than one percent.

(a)   Associated with the sale of First Horizon Bank branches

(b)  Third quarter 2007 includes a $2 billion shift in wholesale borrowings from short-term CDs to FHLB advances

9

CONSOLIDATED AVERAGE AND PERIOD-END LOANS
Quarterly, Unaudited
											3Q07 Change vs.
(Thousands)	3Q07		2Q07		1Q07		4Q06		3Q06		2Q07			3Q06
Average Loans (Net)
Commercial
Commercial, financial and industrial	$	7,061,103	$	7,292,380	$	7,131,102	$	6,903,708	$	6,803,461		(3	)%		4	%
Real estate commercial  (a)		1,363,363		1,260,196		1,157,711		1,187,431		1,221,408		8	%		12	%
Real estate construction  (b)		2,875,296		2,919,522		2,843,263		2,741,118		2,575,590		(2	)%		12	%
Total commercial loans		11,299,762		11,472,098		11,132,076		10,832,257		10,600,459		(2	)%		7	%
Retail
Real estate residential   (c)		7,601,422		7,854,784		7,908,039		8,211,506		8,512,589		(3	)%		(11	)%
Real estate construction  (d)		2,144,902		2,095,021		2,045,952		2,081,885		2,065,849		2	%		4	%
Other retail		149,714		149,976		153,651		160,366		160,446		*			(7	)%
Credit card receivables		194,376		194,732		195,209		201,092		201,319		*			(3	)%
Real estate loans pledged against
other collateralized borrowings (e)		808,247		543,771		572,284		406,926		268,125		49	%		201	%
Total retail loans		10,898,661		10,838,284		10,875,135		11,061,775		11,208,328		1	%		(3	)%
Total loans, net of unearned income	$	22,198,423	$	22,310,382	$	22,007,211	$	21,894,032	$	21,808,787		(1	)%		2	%
Period-End Loans (Net)
Commercial
Commercial, financial and industrial	$	6,978,643	$	7,218,582	$	7,371,873	$	7,201,009	$	6,945,207		(3	)%		*
Real estate commercial  (a)		1,326,261		1,389,963		1,144,086		1,136,590		1,199,084		(5	)%		11	%
Real estate construction  (b)		2,828,545		2,830,856		2,931,183		2,753,458		2,660,415		*			6	%
Total commercial loans		11,133,449		11,439,401		11,447,142		11,091,057		10,804,706		(3	)%		3	%
Retail
Real estate residential   (c)		7,544,048		7,614,887		7,856,197		7,973,313		8,428,652		(1	)%		(10	)%
Real estate construction  (d)		2,160,593		2,158,775		2,073,293		2,085,133		2,096,440		*			3	%
Other retail		144,526		149,157		151,959		161,178		163,134		(3	)%		(11	)%
Credit card receivables		196,967		194,715		187,658		203,307		202,866		1	%		(3	)%
Real estate loans pledged against
other collateralized borrowings (e)		793,421		825,368		551,941		590,917		259,232		(4	)%		206	%
Total retail loans		10,839,555		10,942,902		10,821,048		11,013,848		11,150,324		(1	)%		(3	)%
Total loans, net of unearned income	$	21,973,004	$	22,382,303	$	22,268,190	$	22,104,905	$	21,955,030		(2	)%		*

* Amount is less than one percent.

(a)	Includes commercial real estate
(b)	Includes home builder finance/condominiums
(c)	Includes consumer real estate (HELOC and other product lines)
(d)	Includes one-time close product
(e)	Includes on balance sheet securitizations

10

CONSOLIDATED AVERAGE BALANCE SHEET
Quarterly, Unaudited
																3Q07 Change vs.
(Thousands)	3Q07			2Q07			1Q07			4Q06			3Q06			2Q07			3Q06
Assets:
Earning assets:
Loans, net of unearned income*	$	22,198,423		$	22,310,382		$	22,007,211		$	21,894,032		$	21,808,787			(1	)%		2	%
Loans held for sale		3,963,650			4,087,446			3,646,252			3,796,828			4,192,558			(3	)%		(5	)%
Investment securities:
U.S. Treasuries		151,831			156,865			50,899			50,891			50,989			(3	)%		198	%
U.S. government agencies		2,836,619			3,005,463			3,513,737			3,652,056			3,512,162			(6	)%		(19	)%
States and municipalities		1,750			1,769			1,769			1,771			1,869			(1	)%		(6	)%
Other		237,291			232,850			284,625			279,353			270,435			2	%		(12	)%
Total investment securities		3,227,491			3,396,947			3,851,030			3,984,071			3,835,455			(5	)%		(16	)%
Capital markets securities inventory		1,810,703			2,546,668			2,409,211			2,514,046			2,524,102			(29	)%		(28	)%
Mortgage banking trading securities		545,201			528,457			331,800			327,842			380,586			3	%		43	%
Other earning assets:
Federal funds sold and securities
purchased under agreements to resell		1,224,193			1,442,951			1,519,375			1,810,935			1,875,420			(15	)%		(35	)%
Investment in bank time deposits		41,118			32,310			19,666			18,091			40,899			27	%		1	%
Total other earning assets		1,265,311			1,475,261			1,539,041			1,829,026			1,916,319			(14	)%		(34	)%
Total earning assets		33,010,779			34,345,161			33,784,545			34,345,845			34,657,807			(4	)%		(5	)%
Allowance for loan losses		(236,188	)		(229,157	)		(223,932	)		(213,569	)		(206,871	)		3	%		14	%
Cash and due from banks		788,636			804,816			845,987			796,227			786,047			(2	)%		**
Capital markets receivables		141,519			165,433			137,536			154,908			151,037			(14	)%		(6	)%
Premises and equipment, net		435,480			443,428			449,283			446,556			436,027			(2	)%		**
Other assets		3,613,812			3,540,463			3,653,625			3,797,814			3,695,718			2	%		(2	)%
Total assets	$	37,754,038		$	39,070,144		$	38,647,044		$	39,327,781		$	39,519,765			(3	)%		(4	)%
Liabilities and shareholders' equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Other interest-bearing deposits	$	1,777,982		$	1,892,479		$	1,927,573		$	1,792,484		$	1,822,558			(6	)%		(2	)%
Savings		3,475,981			3,538,198			3,413,592			3,327,576			3,270,211			(2	)%		6	%
Time deposits		2,913,872			2,874,932			2,893,963			2,921,197			2,873,451			1	%		1	%
Total interest-bearing core deposits		8,167,835			8,305,609			8,235,128			8,041,257			7,966,220			(2	)%		3	%
Certificates of deposit $100,000 and more (a)		6,802,371			8,271,191			8,040,937			9,820,358			9,694,677			(18	)%		(30	)%
Federal funds purchased and securities
sold under agreements to repurchase		4,964,072			4,967,888			4,505,777			3,888,492			4,650,930			**			7	%
Capital markets trading liabilities		773,576			1,054,718			1,166,790			1,322,664			1,358,976			(27	)%		(43	)%
Commercial paper and other short-term
borrowings (a)		1,165,801			560,721			987,898			889,802			773,038			108	%		51	%
Long term debt:
Term borrowings		5,837,370			5,887,063			5,807,925			5,307,502			5,265,288			(1	)%		11	%
Other collateralized borrowings		807,143			550,604			581,030			411,466			273,035			47	%		196	%
Total long-term debt		6,644,513			6,437,667			6,388,955			5,718,968			5,538,323			3	%		20	%
Total interest-bearing liabilities		28,518,168			29,597,794			29,325,485			29,681,541			29,982,164			(4	)%		(5	)%
Noninterest-bearing deposits		5,096,766			5,304,752			5,104,695			5,293,435			5,265,586			(4	)%		(3	)%
Capital markets payables		139,170			182,960			222,607			247,738			213,104			(24	)%		(35	)%
Other liabilities		1,276,262			1,206,237			1,235,077			1,299,041			1,321,607			6	%		(3	)%
Preferred stock of subsidiary		295,277			295,277			295,277			295,274			295,274			-			**
Shareholders' equity		2,428,395			2,483,124			2,463,903			2,510,752			2,442,030			(2	)%		(1	)%
Total liabilities and shareholders' equity	$	37,754,038		$	39,070,144		$	38,647,044		$	39,327,781		$	39,519,765			(3	)%		(4	)%

* Includes loans on nonaccrual status.

** Amount is less than one percent.

(a) Third quarter 2007 includes a $2 billion shift in wholesale borrowings from short-term CDs to FHLB advances

11

CONSOLIDATED AVERAGE BALANCE SHEET: INCOME & EXPENSE
Quarterly, Unaudited
																3Q07 Change vs.
(Thousands)	3Q07			2Q07			1Q07			4Q06			3Q06			2Q07			3Q06
Assets:
Earning assets:
Loans, net of unearned income*	$	413,376		$	413,340		$	410,512		$	417,262		$	416,980			**			(1	)%
Loans held for sale		66,570			65,923			58,845			63,852			72,135			1	%		(8	)%
Investment securities:
U.S. Treasuries		1,856			1,853			636			646			631			**			194	%
U.S. government agencies		40,293			42,474			50,221			52,107			50,262			(5	)%		(20	)%
States and municipalities		4			4			4			4			6			-			(33	)%
Other		2,838			2,776			3,514			3,527			3,396			2	%		(16	)%
Total investment securities		44,991			47,107			54,375			56,284			54,295			(4	)%		(17	)%
Capital markets securities inventory		25,321			34,087			30,297			34,251			34,128			(26	)%		(26	)%
Mortgage banking trading securities		16,647			16,029			10,317			9,895			10,762			4	%		55	%
Other earning assets:
Federal funds sold and securities
purchased under agreements to resell		15,297			18,142			18,821			23,080			24,033			(16	)%		(36	)%
Investment in bank time deposits		705			410			260			230			544			72	%		30	%
Total other earning assets		16,002			18,552			19,081			23,310			24,577			(14	)%		(35	)%
Total earning assets/interest income	$	582,907		$	595,038		$	583,427		$	604,854		$	612,877			(2	)%		(5	)%
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	$	6,179		$	6,808		$	6,889		$	6,006		$	6,561			(9	)%		(6	)%
Savings		29,140			29,919			26,031			26,253			25,084			(3	)%		16	%
Time deposits		34,745			33,555			33,037			33,733			32,090			4	%		8	%
Total interest-bearing core deposits		70,064			70,282			65,957			65,992			63,735			**			10	%
Certificates of deposit $100,000 and more		92,556			110,630			106,276			132,938			130,875			(16	)%		(29	)%
Federal funds purchased and securities
sold under agreements to repurchase		60,287			61,745			54,379			46,321			56,639			(2	)%		6	%
Capital markets trading liabilities		10,295			14,272			16,361			18,560			19,233			(28	)%		(46	)%
Commercial paper and other short-term
borrowings		14,827			7,187			12,785			12,099			10,232			106	%		45	%
Long term debt:
Term borrowings		85,241			83,529			81,834			76,607			76,336			2	%		12	%
Other collateralized borrowings		11,661			7,826			8,174			6,048			3,927			49	%		197	%
Total long-term debt		96,902			91,355			90,008			82,655			80,263			6	%		21	%
Total interest-bearing liabilities/interest expense	$	344,931		$	355,471		$	345,766		$	358,565		$	360,977			(3	)%		(4	)%
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	$	237,976		$	239,567		$	237,661		$	246,289		$	251,900			(1	)%		(6	)%
Fully taxable equivalent adjustment		(172	)		(135	)		(242	)		(292	)		(279	)		27	%		(38	)%
Net interest income	$	237,804		$	239,432		$	237,419		$	245,997		$	251,621			(1	)%		(5	)%

* Includes loans on nonaccrual status.

** Amount is less than one percent.

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

NM - Not meaningful

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

12

CONSOLIDATED AVERAGE BALANCE SHEET: YIELDS & RATES
Quarterly, Unaudited
																3Q07 Change vs.
(Thousands)	3Q07			2Q07			1Q07			4Q06			3Q06			2Q07	3Q06
Assets:
Earning assets:
Loans, net of unearned income*		7.39	%		7.43	%		7.56	%		7.56	%		7.59	%
Loans held for sale		6.72			6.45			6.46			6.73			6.88
Investment securities:
U.S. Treasuries		4.85			4.74			5.06			5.04			4.92
U.S. government agencies		5.68			5.65			5.72			5.71			5.72
States and municipalities		.83			.98			.97			.98			1.28
Other		4.78			4.77			4.94			5.05			5.02
Total investment securities		5.57			5.55			5.65			5.65			5.66
Capital markets securities inventory		5.59			5.35			5.03			5.45			5.41
Mortgage banking trading securities		12.21			12.13			12.44			12.07			11.31
Other earning assets:
Federal funds sold and securities
purchased under agreements to resell		4.96			5.04			5.02			5.06			5.08
Investment in bank time deposits		6.80			5.10			5.35			5.04			5.27
Total other earning assets		5.02			5.04			5.03			5.06			5.09
Total earning assets/interest income		7.02	%		6.94	%		6.97	%		7.00	%		7.03	%
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		1.38	%		1.44	%		1.45	%		1.33	%		1.43	%
Savings		3.33			3.39			3.09			3.13			3.04
Time deposits		4.73			4.68			4.63			4.58			4.43
Total interest-bearing core deposits		3.40			3.39			3.25			3.26			3.17
Certificates of deposit $100,000 and more		5.40			5.36			5.36			5.37			5.36
Federal funds purchased and securities
sold under agreements to repurchase		4.82			4.99			4.89			4.73			4.83
Capital markets trading liabilities		5.28			5.43			5.69			5.57			5.61
Commercial paper and other short-term
borrowings		5.05			5.14			5.25			5.39			5.25
Long term debt:
Term borrowings		5.85			5.68			5.64			5.78			5.80
Other collateralized borrowings		5.78			5.69			5.63			5.88			5.75
Total long-term debt		5.84			5.68			5.64			5.79			5.80
Total interest-bearing liabilities/interest expense		4.81	%		4.81	%		4.77	%		4.80	%		4.79	%
Noninterest-bearing deposits
Capital markets payables
Other liabilities
Preferred stock of subsidiary
Shareholders' equity
Total liabilities and shareholders' equity
Net interest spread		2.21	%		2.13	%		2.20	%		2.20	%		2.24	%
Effect of interest-free sources used to fund
earning assets		.66			.66			.64			.65			.65
Net interest margin		2.87	%		2.79	%		2.84	%		2.85	%		2.89	%

* Includes loans on nonaccrual status.

Yields are adjusted to a fully taxable equivalent.  Earning assets yields are expressed net of unearned income.

Rates are expressed net of unamortized debenture cost for long-term debt.  Net interest margin is computed using total net interest income.

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

13

MORTGAGE SERVICING RIGHTS
Quarterly, Unaudited
																3Q07 Change vs.
(Thousands)	3Q07			2Q07			1Q07			4Q06			3Q06			2Q07			3Q06
First Liens
Fair value beginning balance	$	1,481,727		$	1,500,337		$	1,495,215		$	1,464,360		$	1,565,649			(1	)%		(5	)%
Addition of mortgage servicing rights		97,084			100,550			84,707			86,306			90,970
Reductions due to loan payments		(48,964	)		(62,661	)		(61,698	)		(66,937	)		(60,328	)
Changes in fair value due to:
Changes in current market interest rates		(100,602	)		118,048			(17,833	)		11,601			(131,646	)
Reclassification to trading assets		-			(174,547	)		-			-			-
Other changes in fair value		-			-			(54	)		(115	)		(285	)
Fair value ending balance	$	1,429,245		$	1,481,727		$	1,500,337		$	1,495,215		$	1,464,360			(4	)%		(2	)%
Second Liens
Fair value beginning balance	$	27,608		$	25,710		$	24,091		$	18,851		$	14,457			7	%		91	%
Addition of mortgage servicing rights		3,587			3,997			3,998			3,931			4,905
Reductions due to loan payments		(2,559	)		(2,169	)		(2,378	)		(1,716	)		(1,172	)
Changes in fair value due to:
Changes in current market interest rates		32			67			(1	)		11			(61	)
Changes in assumptions		-			-			-			2,400			722
Other changes in fair value		79			3			-			614			-
Fair value ending balance	$	28,747		$	27,608		$	25,710		$	24,091		$	18,851			4	%		52	%
HELOC
Fair value beginning balance	$	13,631		$	13,994		$	14,636		$	15,130		$	15,307			(3	)%		(11	)%
Addition of mortgage servicing rights		87			791			1,041			1,028			1,559
Reductions due to loan payments		(1,124	)		(1,154	)		(1,683	)		(1,385	)		(1,805	)
Changes in fair value due to:
Changes in current market interest rates		(39	)		-			-			(1	)		61
Changes in assumptions		-			-			-			-			8
Other changes in fair value		42			-			-			(136	)		-
Fair value ending balance	$	12,597		$	13,631		$	13,994		$	14,636		$	15,130			(8	)%		(17	)%
Total Consolidated
Fair value beginning balance	$	1,522,966		$	1,540,041		$	1,533,942		$	1,498,341		$	1,595,413			(1	)%		(5	)%
Addition of mortgage servicing rights		100,758			105,338			89,746			91,265			97,434
Reductions due to loan payments		(52,647	)		(65,984	)		(65,759	)		(70,038	)		(63,305	)
Changes in fair value due to:
Changes in current market interest rates		(100,609	)		118,115			(17,834	)		11,611			(131,646	)
Changes in assumptions		-			-			-			2,400			730
Reclassification to trading assets		-			(174,547	)		-			-			-
Other changes in fair value		121			3			(54	)		363			(285	)
Fair value ending balance	$	1,470,589		$	1,522,966		$	1,540,041		$	1,533,942		$	1,498,341			(3	)%		(2	)%

* Amount is less than one percent.

14

ASSET QUALITY HIGHLIGHTS
Quarterly, Unaudited
																3Q07 Change vs.
(Thousands)	3Q07			2Q07			1Q07			4Q06			3Q06			2Q07			3Q06
Allowance for Loan Losses
Beginning Reserve	$	229,919		$	220,806		$	216,285		$	206,829		$	199,835			4	%		15	%
Provision		43,352			44,408			28,486			22,983			23,694			(2	)%		83	%
Divestitures/acquisitions/transfers		(5,276	)		(12,326	)		2,655			-			(275	)	NM			NM
Charge-offs		(35,858	)		(26,493	)		(29,665	)		(16,535	)		(19,782	)		35	%		81	%
Recoveries		4,474			3,524			3,045			3,008			3,357			27	%		33	%
Ending Balance	$	236,611		$	229,919		$	220,806		$	216,285		$	206,829			3	%		14	%
Reserve for off-balance sheet commitments	$	9,002		$	10,494		$	9,406		$	9,378		$	9,230			(14	)%		(2	)%
Total of allowance for loan losses and reserve
for off-balance sheet commitments	$	245,613		$	240,413		$	230,212		$	225,663		$	216,059			2	%		14	%
Non-Performing Assets
Retail/Commercial Banking
Nonperforming loans	$	189,798		$	128,025		$	73,620		$	82,837		$	63,956			48	%		197	%
Foreclosed real estate		37,796			36,635			35,388			31,230			29,947			3	%		26	%
Total Retail/Commercial Banking		227,594			164,660			109,008			114,067			93,903			38	%		142	%
Mortgage Banking
Nonperforming loans - held for sale		18,508			12,484			10,347			10,793			10,488			48	%		76	%
Foreclosed real estate		22,250			16,953			16,569			14,168			13,598			31	%		64	%
Total Mortgage Banking		40,758			29,437			26,916			24,961			24,086			38	%		69	%
Total nonperforming assets	$	268,352		$	194,097		$	135,924		$	139,028		$	117,989			38	%		127	%
Other
Loans past due 90 days or more (a)	$	206,660		$	171,027		$	169,840		$	167,192		$	160,662			21	%		29	%
Guaranteed portion of loans past due
90 days or more (a)		158,780			130,858			123,461			128,869			130,373			21	%		22	%
Foreclosed real estate from GNMA loans		15,610			13,910			16,655			18,121			21,679			12	%		(28	)%
Period-end loans, net of unearned
income (millions)	$	21,973		$	22,382		$	22,268		$	22,105		$	21,955			(2	)%		*
Insured loans		928			987			847			730			730			(6	)%		27	%
Loans excluding insured loans	$	21,045		$	21,395		$	21,421		$	21,375		$	21,225			(2	)%		(1	)%
Off-balance sheet commitments (millions) (b)	$	7,106		$	7,202		$	7,586		$	7,587		$	7,416			(1	)%		(4	)%

(a) Includes loans held for sale.

(b) Amount of off-balance sheet commitments for which a reserve has been provided.

NM - Not meaningful

* Amount is less than one percent.

15

ASSET QUALITY HIGHLIGHTS
Quarterly, Unaudited
																3Q07 Change vs.
(Thousands)	3Q07			2Q07			1Q07			4Q06			3Q06			2Q07	3Q06
FHN Consolidated
Nonperforming loans ratio (a)		.86	%		.57	%		.33	%		.37	%		.29	%
Nonperforming assets ratio (b)		1.13			.81			.56			.58			.49
Allowance to total loans		1.08			1.03			.99			.98			.94
Allowance to loans excluding insured loans		1.12			1.07			1.03			1.01			.97
Allowance to nonperforming loans (c)		124.66			179.59			299.93			261.10			323.39
Allowance to nonperforming assets (d)		94.70			126.60			175.83			168.66			192.40
Net charge-off ratio (e)		.57			.41			.48			.25			.30
Coverage ratio (f)		1.88x			2.50x			2.07x			4.00x			3.15x
Retail/Commercial Banking
Nonperforming assets ratio (b)		1.05	%		.75	%		.50	%		.52	%		.44	%
Allowance to nonperforming assets		103.96			139.63			202.56			189.61			220.26
Mortgage Banking
Nonperforming assets ratio (g)		.04	%		.03	%		.03	%		.02	%		.02	%
Nonperforming Loans by Product
Nonperforming loans:
Commercial		12	%		17	%		37	%		44	%		52	%
Commercial real estate		1			2			2			2			5
Home builder/condominium construction		46			30			13			16			18
Total commercial		59			49			52			62			75
Retail real estate		5			7			8			8			6
One-time close		36			44			40			30			19
Retail non-real estate		-			-			-			-			-
Total retail		41			51			48			38			25
Total loans		100	%		100	%		100	%		100	%		100	%
Net Charge-offs by Product
Net charge-offs:
Commercial		32	%		34	%		52	%		50	%		44	%
Commercial real estate		2			1			1			1			-
Home builder/condominium construction		15			5			7			-			1
Total commercial		49			40			60			51			45
Retail real estate		22			33			23			26			36
One-time close		20			16			9			5			6
Retail non-real estate		9			11			8			18			13
Total retail		51			60			40			49			55
Total loans		100	%		100	%		100	%		100	%		100	%
HELOC and Real Estate Secured Installment Loans
Held to Maturity Originations
Whole-loan credit insured		8.12	%		8.66	%		9.22	%		8.17	%		.90	%
Not insured		91.88			91.34			90.78			91.83			99.10
FICO score distribution (not insured)
>= 700		85.24	%		83.59	%		83.60	%		83.07	%		80.80	%
660 - 699		11.15			11.15			11.51			11.96			13.35
620 - 659		2.72			3.80			3.38			4.07			4.71
< 620		.90			1.45			1.52			.90			1.13
Average FICO score (not insured)		748			747			746			745			742
Cumulative LTV distribution (not insured)
<= 80%		57.40	%		59.43	%		63.13	%		60.14	%		56.71	%
80.1% - 90.0%		29.31			25.22			25.49			28.21			25.09
> 90%		13.29			15.35			11.39			11.65			18.20
Average CLTV (not insured)		75.26	%		74.11	%		72.95	%		73.82	%		75.79	%

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

16

ASSET QUALITY HIGHLIGHTS: KEY PORTFOLIOS
Unaudited
C&I Portfolio		$7.2 Billion (30% of Total Loans)
	- Performing well as expected	Asset Quality Metrics	9/30/2007	6/30/2007
	- Mostly relationship customers in TN	30+ (accruing del.)	.37%	.66%
	- Process changes in 1H07 accelerated loss recognition somewhat	NPLs	.32%	.31%
	- Few individual loans charged-off in 3Q07, including $3mm floor plan loan	Charge-Offs (ytd ann.)	.59%	.66%
	- Subject to quarterly "lumpiness" from individual credits
Consumer Real Estate (Home Equity) Portfolio		$8.3 Billion (35% of Total Loans)
	- Performance shows incremental deterioration, but continues to perform better than expected	Asset Quality Metrics	9/30/2007	6/30/2007
	- Geographically diverse	30+ (accruing del.)	1.14%	1.07%
	- Top States (TN= 29%, CA = 13%, VA = 4%, WA = 4%, MD = 4%, FL = 3%)	NPLs	.11%	.10%
	- Strong borrower quality	Charge-Offs (ytd ann.)	.33%	.32%
	- 748 avg. origination FICO; 730 avg. portfolio FICO (refreshed)
	- Good collateral position
	- High LTV loans managed through whole loan insurance
	- 84% of uninsured portfolio <90 CLTV
	- 62% of remaining 16% HLTV loans have FICO>700
	- No longer originating loans>89.9% CLTV
	- Good borrower capacity (36% avg. DTI)
	- Primarily retail-sourced (87% retail)
Homebuilder Portfolio		$2.2 Billion (10% of Total Loans)
	- Loans to residential builders and developers	Asset Quality Metrics	9/30/2007	6/30/2007
	- Geographically diverse	30+ (accruing del.)	1.25%	1.96%
	- Top States (TN= 19%, FL=12%,WA=10%,CA = 9%, TX = 7%)	NPLs	3.93%	1.67%
	- Performance under pressure from housing market (oversupply & lack of mortgage availability)	Charge-Offs (ytd ann.)	.51%	.29%
	- Most severe market conditions in Florida, California, Virginia/DC and Georgia/Atlanta
	- Managing existing relationships (shrinking business into 2008)
	- Devoting additional resources to manage problem loans	- 45 individual non-performing loans (NPLs)
	- Condo exposure is relatively small ($300 million)	- Average NPL is $1.9 million
	- Land exposure has been reduced to 25% of commitments	- Largest NPL is $9.5 million
		- Geographic concentration of NPLs
		- Top States (FL=40%, OK=13%,TN=12% VA =12%)
One-Time Close (OTC) Portfolio		$2.3 Billion (10% of Total Loans)
	- Performance under pressure from housing market, borrower stress	Asset Quality Metrics	9/30/2007	6/30/2007
	- Construction-to-perm loans to consumers	30+ (accruing del.)	1.46%	1.08%
	- Aggressively managing weakening credits	NPLs	3.21%	2.60%
	- Significant changes to business (shrinking business into 2008)	Charge-Offs (ytd ann.)	.77%	.57%
	- More equity required, higher FICOs, tighter underwriting processes and guidelines
	- Geographically diverse
	- Top States (CA=20%, TX=14%, ID=8%, UT=8%, WA=7%, FL=5%)	- 252 individual non-performing loans (NPLs)
	- Strong borrower quality overall - problems are geographically concentrated	- Average NPL is $275,000
	- 75% have FICO>700	- Geographic concentration of NPLs
		- Top States (FL=30%, CA =19%, TX=12%, VA=5%)

17

BUSINESS SEGMENT HIGHLIGHTS
Quarterly, Unaudited
																3Q07 Change vs.
(Thousands)	3Q07			2Q07			1Q07			4Q06			3Q06			2Q07			3Q06
Retail/Commercial Banking
Total revenues(a)	$	314,976		$	324,545		$	327,075		$	343,294		$	344,424			(3	)%		(9	)%
Provision for loan losses		43,349			36,847			28,493			23,263			23,549			18	%		84	%
Noninterest expenses		193,269			206,217			198,195			211,509			205,416			(6	)%		(6	)%
Pre-tax income		78,358			81,481			100,387			108,522			115,459			(4	)%		(32	)%
Provision for income taxes		27,792			22,774			30,258			33,682			35,470			22	%		(22	)%
Net income from continuing operations		50,566			58,707			70,129			74,840			79,989			(14	)%		(37	)%
Income/(loss) from discontinued operations, net of tax		209			179			240			187			(69	)	NM			NM
Net income	$	50,775		$	58,886		$	70,369		$	75,027		$	79,920			(14	)%		(36	)%
Mortgage Banking
Total revenues(a)	$	62,748		$	99,320		$	94,077		$	112,419		$	111,642			(37	)%		(44	)%
Provision for loan losses		3			(111	)		(7	)		(280	)		145			(103	)%		(98	)%
Noninterest expenses		108,580			115,565			105,331			108,925			136,804			(6	)%		(21	)%
Pre-tax (loss)/income		(45,835	)		(16,134	)		(11,247	)		3,774			(25,307	)		184	%		81	%
(Benefit)/provision for income taxes		(16,612	)		(8,493	)		(11,782	)		319			(10,283	)		96	%		62	%
Net (loss)/income	$	(29,223	)	$	(7,641	)	$	535		$	3,455		$	(15,024	)		282	%		95	%
Capital Markets
Total revenues(a)	$	59,678		$	86,552		$	83,092		$	92,634		$	96,967			(31	)%		(38	)%
Noninterest expenses		67,339			73,846			79,726			84,075			81,778			(9	)%		(18	)%
Pre-tax (loss)/income		(7,661	)		12,706			3,366			8,559			15,189			(160	)%		(150	)%
(Benefit)/provision for income taxes		(2,957	)		4,741			1,217			3,180			5,682			(162	)%		(152	)%
Net (loss)/income	$	(4,704	)	$	7,965		$	2,149		$	5,379		$	9,507			(159	)%		(149	)%
Corporate
Total revenues(a)	$	3,877		$	9,314		$	16,363		$	13,994		$	16,515			(58	)%		(77	)%
Provision for loan losses		-			7,672			-			-			-		NM				-
Noninterest expenses		52,434			61,612			19,760			27,121			28,901			(15	)%		81	%
Pre-tax loss		(48,557	)		(59,970	)		(3,397	)		(13,127	)		(12,386	)		(19	)%		292	%
Income tax benefit		(17,553	)		(22,883	)		(891	)		(5,733	)		(5,093	)		(23	)%		245	%
Net loss	$	(31,004	)	$	(37,087	)	$	(2,506	)	$	(7,394	)	$	(7,293	)		(16	)%		325	%
Total Consolidated
Total revenues(a)	$	441,279		$	519,731		$	520,607		$	562,341		$	569,548			(15	)%		(23	)%
Provision for loan losses		43,352			44,408			28,486			22,983			23,694			(2	)%		83	%
Total noninterest expenses		421,622			457,240			403,012			431,630			452,899			(8	)%		(7	)%
Pre-tax (loss)/income		(23,695	)		18,083			89,109			107,728			92,955			(231	)%		(125	)%
(Benefit)/provision for income taxes		(9,330	)		(3,861	)		18,802			31,448			25,776			142	%		(136	)%
Net (loss)/income from continuing operations		(14,365	)		21,944			70,307			76,280			67,179			(165	)%		(121	)%
Income/(loss) from discontinued operations, net of tax		209			179			240			187			(69	)	NM			NM
Net (loss)/income	$	(14,156	)	$	22,123		$	70,547		$	76,467		$	67,110			(164	)%		(121	)%

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

(a) Includes noninterest income and net interest income/(expense)

NM - Not meaningful

* Amount is less than one percent.

18

RETAIL/COMMERCIAL BANKING
Quarterly, Unaudited
																3Q07 Change vs.
(Thousands)	3Q07			2Q07			1Q07			4Q06			3Q06			2Q07			3Q06
Income Statement
Net interest income		$219,579			$217,896			$224,116			$228,955			$232,830			1	%		(6	)%
Noninterest income		95,397			106,649			102,959			114,339			111,594			(11	)%		(15	)%
Divestitures		-			-			-			-			-
Securities (losses)/gains, net		-			-			-			-			-
Total revenue		314,976			324,545			327,075			343,294			344,424			(3	)%		(9	)%
Total noninterest expense		193,269			206,217			198,195			211,509			205,416			(6	)%		(6	)%
Provision		43,349			36,847			28,493			23,263			23,549			18	%		84	%
Pretax income		$78,358			$81,481			$100,387			$108,522			$115,459			(4	)%		(32	)%
Efficiency ratio		61.36	%		63.54	%		60.60	%		61.61	%		59.64	%
Balance Sheet
Average loans (millions)		$21,773			$21,904			$21,592			$21,471			$21,382			(1	)%		2	%
Other earning assets (millions)		685			585			557			413			465			17	%		47	%
Total earning assets (millions)		22,458			22,489			22,149			21,884			21,847			*			3	%
Total deposits (millions)		$12,181			$12,156			$12,143			$12,085			$11,980			*			2	%
Net interest margin		3.88	%		3.89	%		4.10	%		4.15	%		4.23	%
Noninterest Income Detail
Deposit transactions & cash mgmt		$44,855			$43,067			$39,344			$43,299			$44,483			4	%		1	%
Insurance commissions		6,508			7,863			9,586			8,912			10,404			(17	)%		(37	)%
Trust services & investment mgmt		9,972			10,671			9,733			10,469			9,642			(7	)%		3	%
Bankcard Income		5,986			6,007			5,701			6,079			6,164			*			(3	)%
Other service charges		4,939			5,496			5,460			5,014			4,638			(10	)%		6	%
Check clearing fees		1,275			1,284			1,212			1,386			1,594			(1	)%		(20	)%
Revenue from loan sales and
securitizations (a)		4,049			7,680			8,522			13,886			10,068			(47	)%		(60	)%
Miscellaneous revenue		17,813			24,581			23,401			25,294			24,601			(28	)%		(28	)%
Total noninterest income		$95,397			$106,649			$102,959			$114,339			$111,594			(11	)%		(15	)%
Key Statistics
Full Service Banking (b)
Average loans (millions)		$10,520			$10,418			$10,289			$10,147			$10,031			1	%		5	%
Total deposits (millions)		10,966			10,918			10,898			10,816			10,737			*			2	%
First Horizon Banks (c)
Average loans (millions)		$611			$589			$573			$541			$502			4	%		22	%
Total deposits (millions)		499			513			510			512			490			(3	)%		2	%
National Specialty Banking (d)
Average loans (millions)		$10,642			$10,897			$10,730			$10,783			$10,849			(2	)%		(2	)%
Total deposits (millions)		716			725			735			757			753			(1	)%		(5	)%
Locations
Full-Service Financial Centers		233			233			231			229			221			-			5	%
First Tennesee		199			199			199			197			194			-			3	%
First Horizon Bank		34			34			32			32			27			-			26	%
Trust Assets
Total assets (millions)(b)		$13,436			$12,954			$12,878			$12,472			$12,866			4	%		4	%
Total managed assets (millions)(b)		6,645			6,811			6,700			6,546			6,270			(2	)%		6	%

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

(b) Full Service banking includes First Tennessee Bank and Middle Market Lending

(c) First Horizon Banks

(d) National Specialty Banking includes Correspondent Banking, Equity Lending, Construction Lending, Other Financial Services and

      Emerging National Businesses

19

MORTGAGE BANKING
Quarterly, Unaudited
																3Q07 Change vs.
(Thousands)	3Q07			2Q07			1Q07			4Q06			3Q06			2Q07			3Q06
Income Statement
Net interest income		$20,590			$24,353			$17,343			$20,857			$21,266			(15	)%		(3	)%
Noninterest income
Net origination fees		(17,494	)		67,281			63,641			69,230			64,248			(126	)%		(127	)%
Net servicing fees		49,738			(3,496	)		3,008			11,826			15,701		NM				217	%
Other fees		9,914			11,182			10,085			10,506			10,427			(11	)%		(5	)%
Total noninterest income		42,158			74,967			76,734			91,562			90,376			(44	)%		(53	)%
Total revenue		62,748			99,320			94,077			112,419			111,642			(37	)%		(44	)%
Noninterest expense		108,580			115,565			105,331			108,925			136,804			(6	)%		(21	)%
Provision		3			(111	)		(7	)		(280	)		145			(103	)%		(98	)%
Pretax (loss)/income		$(45,835	)		$(16,134	)		$(11,247	)		$3,774			$(25,307	)		184	%		81	%
Efficiency ratio		173.04	%		116.36	%		111.96	%		96.89	%		122.54	%
Balance Sheet
Warehouse (millions)		$3,311			$3,531			$3,030			$3,124			$3,173			(6	)%		4	%
Other earning assets (millions)		1,007			995			796			825			866			1	%		16	%
Total earning assets (millions)		$4,318			$4,526			$3,826			$3,949			$4,039			(5	)%		7	%
Escrow balances  (millions)		$1,894			$2,032			$1,858			$2,000			$1,965			(7	)%		(4	)%
Net interest margin		1.89	%		2.16	%		1.84	%		2.10	%		2.09	%
Warehouse Spread		1.34	%		1.14	%		1.12	%		1.24	%		1.18	%
Noninterest Expense Detail
Commissions & incentives		$45,112			$50,660			$44,984			$47,428			$50,090
FAS 91 cost deferral		6,392			(3,832	)		(1,816	)		(1,131	)		1,515
Other salaries & benefits		49,147			55,408			51,882			56,462			56,584
Total salaries & benefits		100,651			102,236			95,050			102,759			108,189			(2	)%		(7	)%
Contract labor & outsourcing		2,941			2,468			2,574			3,103			4,025
Equipment & occupancy		17,177			16,639			17,221			17,362			17,095
Foreclosure provision		(241	)		2,225			1,611			1,042			(698	)
Other expenses		44,327			50,602			40,714			38,525			64,289
Total expenses before FAS 91 reclass		164,855			174,170			157,170			162,791			192,900			(5	)%		(15	)%
FAS 91 reclassification**		(61,505	)		(62,996	)		(56,343	)		(57,575	)		(59,480	)
Total noninterest expense before
segment allocations		103,350			111,174			100,827			105,216			133,420
Segment allocations		5,230			4,391			4,504			3,709			3,384
Total noninterest expense		$108,580			$115,565			$105,331			$108,925			$136,804			(6	)%		(21	)%

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.

20

MORTGAGE BANKING: ORIGINATION INCOME
Quarterly, Unaudited
																3Q07 Change vs.
(Thousands)	3Q07			2Q07			1Q07			4Q06			3Q06			2Q07			3Q06
Origination Income
Origination fees		$56,042			$68,609			$58,755			$63,255			$65,132
FAS 91 fee deferral		5,563			(2,436	)		(1,016	)		(225	)		1,318
Appraisal, final inspection,
credit report fees		6,864			7,860			6,544			6,840			7,119
Total origination fees		68,469			74,033			64,283			69,870			73,569			(8	)%		(7	)%
Secondary marketing income
Prime
OMSR, SRP		96,527			98,072			76,821			68,373			72,323
Marketing G/L (Trading Gains)		(57,655	)		13,435			17,728			25,897			13,915
Concessions		(49,551	)		(45,609	)		(34,350	)		(33,293	)		(34,233	)
LOCOM		(11,530	)		(6,880	)		(2,519	)		(1,629	)		(288	)
Subtotal Prime		(22,209	)		59,018			57,680			59,348			51,717			(138	)%		(143	)%
Non-Prime
OMSR, SRP		87			(710	)		331			2,264			3,839
LOCOM		(2,976	)		(1,604	)		(553	)		(2,164	)		(1,940	)
Recourse Provision*		640			(460	)		(1,757	)		(2,513	)		(3,457	)
Subtotal Non-Prime		(2,249	)		(2,774	)		(1,979	)		(2,413	)		(1,558	)		(19	)%		44	%
Total Secondary Marketing income		(24,458	)		56,244			55,701			56,935			50,159			(143	)%		(149	)%
FAS 91 Reclassification		(61,505	)		(62,996	)		(56,343	)		(57,575	)		(59,480	)		(2	)%		3	%
Total Origination Income		(17,494	)		67,281			63,641			$69,230			$64,248			(126	)%		(127	)%
Margins
Marketing margin on deliveries (bps):
Prime
OMSR, SRP		130			134			130			113			116
Marketing G/L (Trading Gains)		(78	)		18			30			43			22
Concessions		(66	)		(62	)		(58	)		(55	)		(55	)
LOCOM		(16	)		(9	)		(4	)		(3	)		-
Subtotal Prime		(30	)		81			98			98			83
Non-Prime
OMSR, SRP	NM				(130	)		25			118			164
LOCOM	NM				(294	)		(41	)		(113	)		(83	)
Recourse Provision*	NM				(84	)		(131	)		(131	)		(148	)
Subtotal Non-Prime	NM				(508	)		(147	)		(126	)		(67	)
Total Marketing Margin on Deliveries		(33	)		76			92			91			77

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.

21

MORTGAGE BANKING: ORIGINATION METRICS
Quarterly, Unaudited
																3Q07 Change vs.
($ in millions)	3Q07			2Q07			1Q07			4Q06			3Q06			2Q07			3Q06
Production
First lien production		$6,672			$8,092			$6,302			$6,417			$6,351			(18	)%		5	%
Breakdown by Product Type
Prime
Conventional Fixed		58	%		56	%		53	%		49	%		45	%
Conventional ARM		5	%		3	%		3	%		4	%		6	%
Jumbo Fixed		7	%		9	%		9	%		8	%		7	%
Jumbo ARM		6	%		8	%		6	%		7	%		7	%
Alt A		12	%		14	%		20	%		22	%		25	%
Government		9	%		7	%		7	%		7	%		5	%
Non Prime		-			1	%		2	%		2	%		4	%
Other		3	%		2	%		-			1	%		1	%
Breakdown by Payment Type
Fully amortizing		78	%		71	%		70	%		70	%		70	%
Interest only - fixed		13	%		18	%		20	%		14	%		10	%
Interest only - ARM		9	%		11	%		10	%		15	%		18	%
Option ARM's		-			-			-			1	%		2	%
Production Refinanced %		31	%		38	%		45	%		44	%		33	%
Production Purchased %		69	%		62	%		55	%		56	%		67	%
ARMs % (Excluding Gov't ARMS)		13	%		15	%		14	%		21	%		27	%
Sales Force
Total Sales Force		2,124			2,508			2,486			2,440			2,495
Warehouse/Pipeline
Ending Warehouse Balance		$2,083			$2,950			$2,527			$2,347			$2,286			(29	)%		(9	)%
Ending Pipeline Balance (Locked)		4,088			4,288			4,019			3,074			3,384			(5	)%		21	%
Loan Sales (Deliveries)
Prime		7,398			7,302			5,919			6,062			6,257			1	%		18	%
Non-Prime		1			55			134			192			233			(98	)%		(100	)%
Total Loan Sales		7,399			7,357			6,053			6,254			6,490			1	%		14	%

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. 3Q07 weighted average FICO score was 733.
	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. 3Q07 weighted average FICO score was 688.
	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.
	Government:	FHA/VA loans that are eligible for GNMA securitizations and government guarantees. 3Q07 weighted average FICO score was 664.

NM - Not meaningful

* Amount is less than one percent.

22

MORTGAGE BANKING: SERVICING
Quarterly, Unaudited
																3Q07 Change vs.
(Thousands)	3Q07			2Q07			1Q07			4Q06			3Q06			2Q07			3Q06
Servicing Income
Gross Service Fees		$90,694			$90,282			$100,077			$99,852			$98,594
Guarantee Fees		(19,312	)		(18,874	)		(18,570	)		(18,630	)		(15,778	)
Sub-Service Fee Income		1			11			27			7			29
Lender Paid MI		(9	)		(20	)		(2	)		(13	)		(24	)
Net Service Fees		71,374			71,399			81,532			81,216			82,821			*			(14	)%
Early Payoff Interest Expense		(3,409	)		(5,036	)		(4,749	)		(4,791	)		(3,718	)
Ancillary Fees		8,696			7,509			7,951			7,521			7,112
Total Service Fees		76,661			73,872			84,734			83,946			86,215			4	%		(11	)%
Change in MSR Value - Runoff		(48,963	)		(62,661	)		(61,698	)		(66,937	)		(60,326	)		(22	)%		(19	)%
Net hedging results:
Change in MSR Value - Other than Runoff		(102,887	)		115,739			(17,138	)		10,351			(133,067	)
MSR Hedge (Losses)/Gains		126,742			(116,955	)		8,773			(7,171	)		127,240
Change in Trading Asset Value		(24,046	)		28,003			(3,312	)		12			(13,628	)
Trading Asset Hedge (Losses)/Gains		29,343			(35,790	)		1,226			(844	)		13,940
Option Expense on Servicing Hedges		(7,112	)		(5,704	)		(9,577	)		(7,531	)		(4,673	)
Total net hedging results		22,040			(14,707	)		(20,028	)		(5,183	)		(10,188	)	NM			NM
Total Servicing Income		49,738			(3,496	)		3,008			11,826			15,701		NM				217	%
Key Servicing Metrics (millions)
Beginning Servicing Portfolio		$105,652			$102,822			$101,370			$100,246			$99,304
Additions to portfolio		6,484			7,778			6,237			6,333			6,238
Prepayments		(2,829	)		(3,944	)		(3,645	)		(3,909	)		(3,476	)
Amortization		(707	)		(708	)		(696	)		(687	)		(692	)
Service Release Sales		(199	)		(296	)		(444	)		(613	)		(1,128	)
Ending Servicing Portfolio (Owned)		$108,401			$105,652			$102,822			$101,370			$100,246			3	%		8	%
Avg. Servicing Portfolio (Owned)		$107,073			$104,208			$101,992			$100,811			$99,484			3	%		8	%
Average Loans Serviced (#)		652,479			643,314			636,496			633,293			629,897			1	%		4	%
Portfolio Product Mix (Average)
GNMA		7	%		8	%		8	%		8	%		8	%
FNMA/FHLMC		65	%		64	%		64	%		64	%		64	%
Private		25	%		25	%		25	%		25	%		25	%
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			27			32			32			33
Total Service Fees - Annualized (bps)		29			28			33			33			35
Ancillary Income per Loan (Annualized)		$53.31			$46.68			$49.97			$47.51			$45.16			14	%		18	%
Servicing Cost per Loan (Annualized)		$48.15			$49.51			$49.44			$49.45			$49.36			(3	)%		(2	)%
Average Servicing Asset (millions)**		1,465			1,371			1,505			1,452			1,532
Servicing Book Value (bps)		137			132			148			144			154
Change in MSR Asset /
Average Servicing Asset		7	%		19	%		19	%		18	%		17	%
Run-Off Rate - Annualized		13	%		18	%		17	%		18	%		17	%

NM - Not meaningful

* Amount is less than one percent.

** Includes valuation reserve/MSRs only

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

23

CAPITAL MARKETS
Quarterly, Unaudited
																3Q07 Change vs.
(Thousands)	3Q07			2Q07			1Q07			4Q06			3Q06			2Q07			3Q06
Income Statement
Net interest income/(expense)		$1,556			$(6	)		$(2,068	)		$781			$2,906		NM				(46	)%
Incremental cost of equity		(3,725	)		(3,859	)		(3,769	)		(4,260	)		(4,437	)		(3	)%		(16	)%
Net interest expense		(2,169	)		(3,865	)		(5,837	)		(3,479	)		(1,531	)		(44	)%		42	%
Noninterest income:
Fixed income		46,003			48,258			46,313			46,235			41,503			(5	)%		11	%
Other product revenue		15,844			42,159			42,616			49,878			56,995			(62	)%		(72	)%
Total noninterest income		61,847			90,417			88,929			96,113			98,498			(32	)%		(37	)%
Total revenue		59,678			86,552			83,092			92,634			96,967			(31	)%		(38	)%
Noninterest expense		67,339			73,846			79,726			84,075			81,778			(9	)%		(18	)%
Pretax income		$(7,661	)		$12,706			$3,366			$8,559			$15,189			(160	)%		(150	)%
Efficiency ratio		112.84	%		85.32	%		95.95	%		90.76	%		84.34	%
Balance Sheet
Trading inventory (millions)		$1,810			$2,546			$2,409			$2,513			$2,523			(29	)%		(28	)%
Other earning assets (millions)		1,261			1,442			1,633			1,889			2,231			(13	)%		(43	)%
Total earning assets (millions)		$3,071			$3,988			$4,042			$4,402			$4,754			(23	)%		(35	)%

NM - Not meaningful

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

24

CORPORATE
Quarterly, Unaudited
																3Q07 Change vs.
(Thousands)	3Q07			2Q07			1Q07			4Q06			3Q06			2Q07			3Q06
Income Statement
Net interest income/(expense)		$6			$1,255			$1,930			$(213	)		$(841	)		(100	)%		(101	)%
Net interest expense from
deferred compensation		(202	)		(207	)		(133	)		(123	)		(103	)		(2	)%		96	%
Total net interest (expense)/income		(196	)		1,048			1,797			(336	)		(944	)
Noninterest income		3,547			1,677			3,028			3,140			1,754			112	%		102	%
Noninterest income from
deferred compensation		526			7,603			1,265			8,188			6,948			(93	)%		(92	)%
Total noninterest income		4,073			9,280			4,293			11,328			8,702			(56	)%		(53	)%
Securities (losses)/gains, net		-			(1,014	)		10,273			3,002			8,757			(100	)%		(100	)%
Total revenue		3,877			9,314			16,363			13,994			16,515			(58	)%		(77	)%
Noninterest expense		51,291			49,706			17,391			16,806			20,069			3	%		156	%
Deferred compensation expense		1,143			11,906			2,369			10,315			8,832			(90	)%		(87	)%
Total noninterest expense		52,434			61,612			19,760			27,121			28,901			(15	)%		81	%
Provision		-			7,672			-			-			-
Pretax loss		$(48,557	)		$(59,970	)		$(3,397	)		$(13,127	)		$(12,386	)		(19	)%		292	%

NM - Not meaningful

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

25

CAPITAL HIGHLIGHTS
Quarterly, Unaudited
																3Q07 Change vs.
(Dollars in millions, except per share amounts)	3Q07			2Q07			1Q07			4Q06			3Q06			2Q07			3Q06
Tier 1 Capital (a)		$2,666.8			$2,711.3			$2,739.1			$2,696.3			$2,660.2			(2	)%		*
Tier 2 Capital (a)		1,321.4			1,316.2			1,324.0			1,320.1			1,338.2			*			(1	)%
Total Capital (a)		$3,988.2			$4,027.5			$4,063.1			$4,016.4			$3,998.4			(1	)%		*
Risk-Adjusted Assets (a)		$31,380.3			$31,224.1			$31,368.0			$30,405.4			$31,583.6			1	%		(1	)%
Tier 1 Ratio (a)		8.50	%		8.68	%		8.73	%		8.87	%		8.42	%
Tier 2 Ratio (a)		4.21			4.22			4.22			4.34			4.24
Total Capital Ratio (a)		12.71	%		12.90	%		12.95	%		13.21	%		12.66	%
Leverage Ratio (a)		7.12	%		7.00	%		7.15	%		6.94	%		6.80	%
Shareholders' Equity/Assets Ratio (b)		6.46			6.42			6.48			6.49			6.26
Book Value		$19.08			$19.43			$19.88			$19.61			$20.06

NM - Not meaningful

(a)  Current quarter is an estimate

(b)  Calculated on period-end balances

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 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.

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