Exhibit 99.1

THIRD QUARTER 2008

FINANCIAL SUPPLEMENT

If you need further information, please contact:

Dave Miller, Investor Relations

901-523-4162

dwmiller@firsthorizon.com

TABLE OF CONTENTS
				Page
First Horizon National Corporation Segment Structure				3
Performance Highlights				4
Efficiency and Restructuring Initiatives				6
Consolidated Results
	Income Statement
		Summary Income Statement		7
		Income Statement		8
		Other Income and Other Expense		9
	Balance Sheet
		Period End Balance Sheet		10
		Average and Period End Loans		11
		Average Balance Sheet		12
			Average Balance Sheet: Income & Expense	13
			Average Balance Sheet: Yields & Rates	14
	Mortgage Servicing Rights			15
Business Segment Detail
		Segment Highlights		16
		Regional Banking		17
		Capital Markets		18
		National Specialty Lending		19
		Mortgage Banking		20
			Mortgage Banking: Origination Income	21
			Mortgage Banking: Origination Metrics	22
			Mortgage Banking: Servicing	23
		Corporate		24
Capital Highlights				25
Asset Quality
		Asset Quality: Consolidated		26
		Analysis of FAS 114 Loans, ORE, & NPL Rollforward		28
		Asset Quality: Regional Banking		29
		Asset Quality: National Specialty Lending		30
		Asset Quality: Mortgage Banking & Capital Markets		31
		Asset Quality Highlights: Key Portfolios - Commercial		32
		Asset Quality Highlights: Key Portfolios - Consumer		33
		Asset Quality Process		34
Glossary of Terms				35
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.

FIRST HORIZON NATIONAL CORPORATION SEGMENT STRUCTURE

Regional Banking
	-Traditional banking services for consumers and business
	-Activities include lending and deposit taking, investments, insurance, financial planning, trust services, asset management,
	cash management, and health savings accounts
	-Primarily southeastern US footprint, with approximately 200 financial centers in TN and nearby markets
	-First Tennessee banking franchise and middle market lending are key businesses
	-First Horizon Banks included for periods prior to divestiture
Capital Markets
	-Fixed income sales, trading, and strategies for institutional clients in U.S. and abroad
	-Other capital markets products include:
		-Equity research, portfolio advisory, structured finance, and investment banking
	-Correspondent banking provides credit, depository, and other banking related services to other financial institutions
National Specialty Lending
	-Primarily portfolio lending activities such as consumer lending and construction lending outside Regional Banking footprint
	-Construction lending includes national home builder, one-time close, and commercial real estate portfolios
		-In January 2008, FHN announced the discontinuation of national home builder and commercial real estate
		lending through its First Horizon Construction Lending offices
	-Consumer lending consists mainly of national retail-originated home equity loans and lines
Mortgage Banking
	-Primarily consists of first lien mortgage originations and servicing
	-In a transaction that closed on Aug. 31, 2008, First Horizon National Corp sold its mortgage servicing platform  and origination offices outside Tennessee to MetLife Bank, N.A.
Corporate
	-Includes executive management, enterprise-wide risk management, corporate finance,
	corporate communications and legal functions
	-Also includes funding function for the corporation and any impact from balance sheet positioning

3

PERFORMANCE HIGHLIGHTS
Summary of Third Quarter 2008 Significant Items (in millions)
Segment	Item	Income Statement	Pre-Tax	Comments
Regional Banking	Loan losses	Provision for loan losses	$(58.2)	Provisioning for deterioration in commercial portfolios.
Capital Markets	Loan losses	Provision for loan losses	$(38.5)	Provisioning for deterioration in correspondent banking loans.
National Specialty Lending	Loan losses	Provision for loan losses	$(240.5)	Provisioning for deterioration in national construction and home equity portfolios.
Mortgage Banking	Origination Income Adjustment	Noninterest income: Mortgage Banking	$(15.5)	Adjustment to reflect revised cash flow expectations related to mortgage origination activities
Corporate	Debt repurchases	Noninterest income: Other	$18.9	Gains on repurchases of $91.7 million of debt.
	Restructuring, Repositioning & Efficiency Initiatives	Noninterest expense: Various	$(15.8)	Expenses from severance, office closures and Mortgage divestiture.  Detailed further on page 6.
	Restructuring, Repositioning & Efficiency Initiatives	Noninterest income: Various	$(18.1)	Loss from Mortgage divestiture. Transaction costs for sales of MSR.  Detailed further on page 6.

(Third Quarter 2008 vs. Second Quarter 2008)
Asset Quality
- Provision increased to $340.0 million in the third quarter compared to $220.0 million in second quarter 2008
	- Portfolio deterioration in third quarter due to declining economic conditions
	- Continuing commercial portfolio grade deterioration
		- Deterioration of homebuilder finance portfolio in national and Tennessee portfolios
		- C&I deterioration, especially in loans to bank holding companies or secured by bank stock
	- Consumer portfolios experiencing increased loss severities
		- Continued wind down of OTC loans provides better visibility into inherent losses in remaining portfolio
		- Home equity delinquencies increased
		- Permanent mortgage portfolio experiencing increased deterioration
- Net charge-offs were 284 annualized basis points of average loans driven by national construction, home equity and C&I portfolios
	- Net charge-offs of $154.7 million in third quarter compared to $127.7 million in prior quarter
	- Charging off almost all impaired commercial loan balances down to most likely estimate of collateral value net of costs to sell
- NPAs increased to 463 basis points from 388 basis points reflecting portfolio deterioration from current economic conditions
	- Total NPAs increased to $1.0 billion from $.9 billion primarily from deterioration in national construction portfolios
- Allowance as a percentage of loans ratio increased to 352 basis points from 259 basis points in prior quarter
Capital
- Initiated quarterly dividend payable in common stock
- Current ratios significantly benefit from equity issuance in second quarter and balance sheet contraction     (estimated based on period end balances)
	- 7.2% for tangible common equity to tangible assets
	- 10.9% for Tier I
	- 15.8% for Total Capital

4

PERFORMANCE HIGHLIGHTS (continued)
(Third Quarter 2008 vs. Second Quarter 2008)
Regional Banking
- Net interest margin increased to 4.43% compared to 4.38% in second quarter
	- Reflects decision to not compete for non-relationship deposits
- Noninterest income declined to $87.9 million from $92.5 million
	- Reduced foreclosure gains, cash management fees and wealth management fees in third quarter
- Provision expense in third quarter primarily reflects downward grade migration in commercial loans
- Noninterest expense increased to $158.6 million compared to $150.3 million in prior quarter
	- Marketing efforts in the third quarter, expenses for improvements to online banking platform and higher    losses on foreclosed properties
Capital Markets
- Fixed income revenues were $80.1 million in third quarter compared to $105.0 million in prior quarter
	- Federal Reserve paused its rate reductions in third quarter
- Other product revenues remained relatively stable at $18.4 million in third quarter compared to $19.6 million in second quarter
- Provision increased to $38.5 million from $18.5 million to reflect deterioration of correspondent banking loans
	- Current stress in financial system impacted these credits
- Decrease in noninterest expense resulted from lower production levels
National Specialty Lending
- Sequential decline in net interest income as loan portfolios continue to wind down
- Net interest margin decreased to 2.14% compared to 2.40% in second quarter
	- Primarily results from an increase in nonaccrual loans
- Provision for loan losses continues to reflect deterioration within national construction portfolios
- Contraction of portfolios will continue since origination activity was significantly curtailed in first quarter
- Noninterest income increased sequentially
	- Charge of $8.7 million recognized in prior quarter as repurchase reserves were increased
		- $1.7 million charge recognized in third quarter
	- $7.2 million reduction in residual valuation recognized in second quarter
- Noninterest expense decreased primarily due to the effects of winding down operations
Mortgage Banking
- Decreased origination income
	- Deliveries and originations both decline significantly due to completion of MetLife transaction
	- Gain on sale margin declined to 21 basis points from 125 basis points
		- Net effect of adopting new accounting standards negatively affected pre-tax earnings by $14.4 million
			- $7.2 million negative effect on second quarter 2008
		- Third quarter adjustment of $15.5 million to reflect revised cash flow expectations related to mortgage origination activities
		- Gains from favorable rate moves at the end of the prior quarter
- Hedging results positively impacted earnings by $50.8 million vs. $16.5 million in second quarter
	- Resulted from positive carry on swaps due to the steepness of the yield curve and a market volatility    benefit on swaps and options
	- Foreclosure reserves expense of $15.9 million in prior quarter related to increased repurchase activity
- Servicing runoff declined to $20.1 million for third quarter from $37.1 million in prior quarter
	- Structural barriers to refinance activity developed in third quarter
- Net interest income declines consistent with decrease in warehouse
- Noninterest expense declined to $89.0 million in third quarter compared to $149.1 million in prior quarter
	- Due to sale of national mortgage offices and servicing platform at the end of August
- Provision of $2.9 million in third quarter due to deterioration in permanent mortgage portfolio
	- $4.0 million of provision in prior quarter
Taxes
- Approximate $8 million positive quarterly effect from permanent tax credits
Corporate Segment
- $18.9 million of gains recognized in third quarter related to repurchases of debt
	- $91.7 million of debt repurchased with maturity dates ranging from October 2008 to February 2011
	- Prior quarter included $12.6 million of gains on repurchase of $152.1 million of debt
- Net charges of $33.9 million recognized for restructuring, repositioning and efficiency initiatives (detail on next page)
	- Third quarter included $15.8 million of expenses
	- $17.5 million of losses related to Mortgage sale presented in (Losses)/Gains on Divestitures
	- $0.6 million of transaction costs from sale of mortgage servicing rights presented as reduction of Mortgage Banking income
	- Prior quarter included $26.0 million of net charges for these initiatives

5

EFFICIENCY AND RESTRUCTURING INITIATIVES
Unaudited
Charges for Restructuring, Repositioning, and Efficiency
	By Income Statement Impact (Thousands, rounded)		3Q08			2Q08			1Q08			4Q07			3Q07
	Noninterest income
	Mortgage banking	$	(700	)	$	(9,300	)	$	(2,700	)	$	(6,400	)		-
	Losses/gains on divestitures		(17,500	)		(400	)		(1,000	)		15,700			-
	Noninterest expense
	Employee compensation, incentives, and benefits		10,700			5,700			7,400			8,400			9,300
	Occupancy		3,900			3,400			1,000			5,500			5,100
	Operations services		-			-			-			400			-
	Equipment rentals, depreciation, and maintenance		100			4,200			-			500			800
	All other expense		1,000			3,000			9,200			21,100			17,600
	Total Income before income taxes	$	(33,900	)	$	(26,000	)	$	(21,300	)	$	(26,600	)	$	(32,800	)

Expect $5 to $15 million additional charges in fourth quarter 2008.

6

CONSOLIDATED SUMMARY INCOME STATEMENT
Quarterly, Unaudited
																3Q08 Change vs.
(Thousands)		3Q08			2Q08			1Q08			4Q07			3Q07			2Q08			3Q07
Net interest income	$	223,147		$	238,895		$	228,092		$	225,987		$	237,804			(7	)%		(6	)%
Noninterest income		305,383			400,018			383,130			103,429			203,475			(24	)%		50	%
Securities gains/(losses), net		(210	)		(972	)		65,946			(10,442	)		-			( 78	)%	NM
Total revenue		528,320			637,941			677,168			318,974			441,279			(17	)%		20	%
Noninterest expense		391,274			465,843			438,277			561,559			421,622			(16	)%		(7	)%
Provision		340,000			220,000			240,000			156,519			43,352			55	%		684	%
Pretax income/(loss)		(202,954	)		(47,902	)		(1,109	)		(399,104	)		(23,695	)	NM			NM
Provision/(benefit) for income taxes		(84,664	)		(28,821	)		(8,146	)		(146,342	)		(9,330	)	NM			NM
Income/(loss) from continuing operations		(118,290	)		(19,081	)		7,037			(252,762	)		(14,365	)	NM			NM
Income from discontinued operations, net of tax		-			-			883			4,137			209		NM			NM
Net (loss)/income	$	(118,290	)	$	(19,081	)	$	7,920		$	(248,625	)	$	(14,156	)	NM			NM
Common Stock Data
Diluted EPS from continuing operations (a)	$	(.59	)	$	(.11	)	$	.05		$	(1.95	)	$	(.11	)	NM			NM
Diluted EPS (a)		(.59	)		(.11	)		.06			(1.91	)		(.11	)	NM			NM
Diluted shares (a)		201,184			176,936			130,532			129,949			129,917			14	%		55	%
Period-end shares outstanding (a)		201,594			201,744			130,668			130,235			130,257			*			55	%
Dividends declared per share (b)	(c)			$	.20		$	.20		$	.45		$	.45		NM			NM
Key Ratios & Other
Return on average assets		(1.41	)%		(.21	)%		.09	%		(2.65	)%		(.15	)%
Return on average equity		(17.30	)%		(3.02	)%		1.47	%		(42.52	)%		(2.31	)%
Net interest margin		3.01	%		3.01	%		2.81	%		2.77	%		2.87	%
Tax rate	NM			NM			NM			NM			NM
Efficiency ratio		74.06	%		73.02	%		64.72	%		176.05	%		95.55	%
FTE employees		6,091			9,245			9,555			9,941			11,052			(34	)%		(45	)%

* Amount is less than one percent

NM - Not meaningful

(a)   Shares reflect the effect of the stock dividend.

(b)   Third quarter 2008 dividend declared was paid in shares.

(c)   Stock dividend rate of 3.0615% per share.

7

CONSOLIDATED INCOME STATEMENT
Quarterly, Unaudited
																	3Q08 Change vs.
(Thousands)		3Q08			2Q08			1Q08			4Q07			3Q07				2Q08			3Q07
Interest income	$	383,243		$	415,485		$	476,443		$	545,136		$	582,735				(8	)%		(34	)%
Less interest expense		160,096			176,590			248,351			319,149			344,931				(9	)%		(54	)%
Net interest income		223,147			238,895			228,092			225,987			237,804				(7	)%		(6	)%
Provision for loan losses		340,000			220,000			240,000			156,519			43,352				55	%		684	%
Net interest income/(loss) after
provision for loan losses		(116,853	)		18,895			(11,908	)		69,468			194,452				(718	)%		(160	)%
Noninterest income:
Capital markets		95,954			122,338			131,457			98,482			63,722				(22	)%		51	%
Deposit transactions
and cash management		45,802			46,797			42,553			47,971			44,863				(2	)%		2	%
Mortgage banking  (a) (b) (c) (d) (e)		106,817			172,418			158,712			(113,965	)		39,022				(38	)%		174	%
Trust services and investment
management		8,154			8,883			9,109			10,097			9,922				(8	)%		(18	)%
Insurance commissions		7,332			6,822			8,144			7,529			6,747				7	%		9	%
Revenue from loan sales and securitizations		3,238			(6,984	)		(4,097	)		(171	)		4,774				(146	)%		(32	)%
Securities (losses)/gains, net		(210	)		(972	)		65,946			(10,442	)		-				(78	)%		-
Gains/(losses) on divestitures (a)		(17,489	)		(429	)		(995	)		15,695			-			NM				-
Other (f)		55,575			50,173			38,247			37,791			34,425				11	%		61	%
Total noninterest income		305,173			399,046			449,076			92,987			203,475				(24	)%		50	%
Adjusted gross income after
provision for loan losses		188,320			417,941			437,168			162,455			397,927				(55	)%		(53	)%
Noninterest expense:
Employee compensation,
incentives and benefits (a) (d)		215,498			277,078			287,470			226,905			236,683				(22	)%		(9	)%
Occupancy (a)		27,210			30,018			28,591			34,209			34,778				(9	)%		(22	)%
Operations services (a)		20,041			19,124			18,964			20,148			18,774				5	%		7	%
Equipment rentals, depreciation
and maintenance (a)		12,336			18,268			15,011			16,252			17,270				(32	)%		(29	)%
Communications and courier (d)		9,628			11,477			11,004			10,664			10,959				(16	)%		(12	)%
Amortization of intangible assets		1,802			2,182			2,440			2,864			2,647				(17	)%		(32	)%
Goodwill impairment		-			-			-			71,074			13,010			NM			NM
Other (a) (d)		104,759			107,696			74,797			179,443			87,501				(3	)%		20	%
Total noninterest expense		391,274			465,843			438,277			561,559			421,622				(16	)%		(7	)%
Pretax Income/(loss)		(202,954	)		(47,902	)		(1,109	)		(399,104	)		(23,695	)		NM			NM
Provision/(benefit) for income taxes		(84,664	)		(28,821	)		(8,146	)		(146,342	)		(9,330	)		NM			NM
Income/(loss) from continuing operations	$	(118,290	)	$	(19,081	)		7,037			(252,762	)		(14,365	)		NM			NM
Income from discontinued operations,
net of tax		-			-			883			4,137			209			NM			NM
Net income/(loss)	$	(118,290	)	$	(19,081	)	$	7,920		$	(248,625	)	$	(14,156	)		NM			NM

NM - Not meaningful

3Q08 Key Impacts
(a)	Includes a portion of net charges for $33.9 million, see Restructuring, Repositioning and Efficiency Initiatives page for further details.
(b)	Includes LOCOM and other loan sale adjustments.
(c)	Include effects of electing fair value for mortgage warehouse loans.
(d)	Includes effect of adopting new accounting standards.
(e)	Includes effect of adjustment to reflect revised cash flow expectations related to mortgage origination activities.
(f)	Includes gains from repurchases of debt.

8

OTHER INCOME AND OTHER EXPENSE
Quarterly, Unaudited
																3Q08 Change vs.
(Thousands)		3Q08			2Q08		1Q08			4Q07			3Q07				2Q08			3Q07
Other Income
Brokerage management fees and
commissions	$	7,824		$	8,690	$	8,413		$	8,747		$	9,189				(10	)%		(15	)%
Bank owned life insurance		6,731			6,343		6,962			6,697			6,260				6	%		8	%
Bankcard income		5,587			5,728		5,540			6,221			6,329				(2	)%		(12	)%
Other service charges		3,043			3,189		3,396			3,357			3,581				(5	)%		(15	)%
Remittance processing		3,314			3,206		3,273			3,450			3,171				3	%		5	%
Reinsurance fees		2,830			3,320		3,145			2,794			2,418				(15	)%		17	%
ATM interchange fees		2,263			2,238		2,238			2,224			2,200				1	%		3	%
Deferred compensation		(5,145	)		1,325		(6,550	)		(1,667	)		526			NM			NM
Letter of credit		1,603			1,274		1,458			1,759			1,864				26	%		(14	)%
Electronic banking fees		1,535			1,572		1,618			1,636			1,631				(2	)%		(6	)%
Check clearing fees		838			887		862			1,125			1,275				(6	)%		(34	)%
Federal flood certifications		863			1,259		1,523			1,084			1,207				(31	)%		(29	)%
Other		24,289			11,142		6,369			364			(5,226	)			118	%		(565	)%
Total	$	55,575		$	50,173	$	38,247		$	37,791		$	34,425				11	%		61	%
Other Expense
Legal and professional fees (a)	$	16,955		$	14,030	$	15,022		$	17,629		$	13,532				21	%		25	%
Computer software  (a)		7,162			8,120		7,956			26,185			9,334				(12	)%		(23	)%
Advertising and public relations (a)		9,142			7,179		9,327			10,297			10,475				27	%		(13	)%
Travel and entertainment  (a)		3,358			5,672		5,027			5,829			7,065				(41	)%		(52	)%
Low income housing expense		5,064			4,815		4,566			6,605			4,483				5	%		13	%
Contract employment  (a)		9,033			7,359		5,584			5,202			5,770				23	%		57	%
Distributions on preferred stock
of subsidiary		2,875			2,844		4,061			4,679			4,761				1	%		(40	)%
Foreclosed real estate		4,979			10,720		6,362			8,871			1,393				(54	)%		257	%
Supplies (a)		2,725			2,942		3,020			3,496			3,382				(7	)%		(19	)%
Loan closing costs (b)		10,314			11,718		13,060			1,279			4,857				(12	)%		112	%
Customer relations		2,727			2,544		1,707			2,834			2,605				7	%		5	%
Other insurance and taxes		749			2,036		1,758			2,684			1,751				(63	)%		(57	)%
Employee training and dues		1,485			1,632		1,398			1,183			1,729				(9	)%		(14	)%
Fed services fees		1,975			1,941		1,611			1,463			1,540				2	%		28	%
Complimentary check expense		1,259			1,154		1,298			1,206			1,237				9	%		2	%
Loan insurance expense		1,477			1,198		1,113			1,073			1,123				23	%		32	%
Bank examination costs		1,523			1,054		1,053			1,142			1,141				44	%		33	%
Deposit insurance premium		4,146			3,403		2,827			1,223			615				22	%		574	%
Other  (a)		17,811			17,335		(11,953	)		76,563			10,708				3	%		66	%
Total	$	104,759		$	107,696	$	74,797		$	179,443		$	87,501				(3	)%		20	%

NM - Not meaningful

3Q08 Key Impacts
(a)	Includes a portion of net charges for $33.9 million, see Efficiency and Restructuring Initiatives.
(b)	Includes effect of electing fair value for mortgage warehouse loans.

9

CONSOLIDATED PERIOD-END BALANCE SHEET
Quarterly, Unaudited
																3Q08 Change vs.
(Thousands)		3Q08			2Q08			1Q08			4Q07			3Q07			2Q08			3Q07
Assets
Investment securities	$	2,840,739		$	2,896,928		$	3,034,798		$	3,032,791		$	3,076,360			(2	)%		(8	)%
Loans held for sale		718,029			2,554,030			3,616,018			3,461,712			2,900,464			(72	)%		(75	)%
Loans held for sale-divestiture (a)		-			-			207,672			289,878			565,492		NM				(100	)%
Loans, net of unearned income		21,601,898			22,225,232			21,932,020			22,103,516			21,973,004			(3	)%		(2	)%
Federal funds sold and securities
purchased under agreements to resell		921,295			1,166,982			898,615			1,089,495			1,096,624			(21	)%		(16	)%
Interest bearing deposits with other financial institutions		37,546			39,829			46,382			39,422			30,993			(6	)%		21	%
Trading securities		1,561,024			1,473,815			1,553,053			1,768,763			1,734,653			6	%		(10	)%
Trading securities-divestiture (a)		-			89,239			-			-			-			(100	)%	NM
Total earning assets		27,680,531			30,446,055			31,288,558			31,785,577			31,377,590			(9	)%		(12	)%
Cash and due from banks		815,935			838,376			851,875			1,170,220			936,707			(3	)%		(13	)%
Capital markets receivables		1,651,547			994,571			1,680,057			524,419			1,219,720			66	%		35	%
Mortgage servicing rights, net		798,491			903,634			895,923			1,159,820			1,470,589			(12	)%		(46	)%
Mortgage servicing rights, net-divestiture (a)		-			235,761			-			-			-			(100	)%	NM
Goodwill		192,408			192,408			192,408			192,408			267,228			-			(28	)%
Other intangible assets, net		46,887			48,615			52,017			56,907			58,738			(4	)%		(20	)%
Premises and equipment, net		336,078			344,410			382,488			399,305			411,515			(2	)%		(18	)%
Real estate acquired by foreclosure (b)		151,461			141,857			106,018			103,982			75,656			7	%		100	%
Allowance for loan losses		(760,456	)		(575,149	)		(483,203	)		(342,341	)		(236,611	)		32	%		221	%
Other assets		1,891,494			1,908,795			2,293,045			1,949,308			1,874,497			(1	)%		1	%
Other assets-divestiture (a)		-			70,628			8,759			15,856			22,623			(100	)%		(100	)%
Total assets	$	32,804,376		$	35,549,961		$	37,267,945		$	37,015,461		$	37,478,252			(8	)%		(12	)%
Liabilities and Shareholders' Equity
Deposits
Savings	$	4,350,832		$	4,041,352		$	4,217,215		$	3,872,684		$	3,592,732			8	%		21	%
Other interest-bearing deposits		1,638,731			1,880,678			1,986,556			1,946,933			1,674,624			(13	)%		(2	)%
Time deposits		2,510,344			2,468,521			2,648,339			2,826,301			2,822,792			2	%		(11	)%
Interest bearing deposits-divestiture (a)		-			-			99,370			189,051			361,368		NM				(100	)%
Total interest-bearing core deposits		8,499,907			8,390,551			8,951,480			8,834,969			8,451,516			1	%		1	%
Noninterest-bearing deposits		3,808,239			4,453,332			4,995,696			5,026,417			4,928,233			(14	)%		(23	)%
Noninterest-bearing deposits-divestiture (a)		-			296,632			18,197			28,750			72,404			(100	)%		(100	)%
Total core deposits		12,308,146			13,140,515			13,965,373			13,890,136			13,452,153			(6	)%		(9	)%
Certificates of deposit $100,000 and more		1,470,089			1,953,432			2,222,016			3,129,532			5,142,169			(25	)%		(71	)%
Certificates of deposit $100,000 and more-divestiture (a)		-			-			1,153			12,617			41,037		NM				(100	)%
Total deposits		13,778,235			15,093,947			16,188,542			17,032,285			18,635,359			(9	)%		(26	)%
Federal funds purchased and securities
sold under agreements to repurchase		1,890,681			2,620,014			3,678,217			4,829,597			4,039,827			(28	)%		(53	)%
Federal funds purchased and securities
sold under agreements to repurchase-divestiture (a)		-			-			11,572			20,999			-		NM			NM
Trading liabilities		380,896			464,225			531,259			556,144			543,060			(18	)%		(30	)%
Other short term borrowings and commercial paper (c)		6,149,073			5,998,810			4,753,582			3,422,995			2,396,316			3	%		157	%
Term borrowings		4,545,791			5,783,407			6,060,795			6,027,967			6,015,954			(21	)%		(24	)%
Other collateralized borrowings		749,797			767,010			809,273			800,450			784,599			(2	)%		(4	)%
Total long-term debt		5,295,588			6,550,417			6,870,068			6,828,417			6,800,553			(19	)%		(22	)%
Capital markets payables		1,645,118			868,883			1,688,870			586,358			1,053,349			89	%		56	%
Other liabilities		785,061			959,476			1,136,461			1,305,868			1,253,295			(18	)%		(37	)%
Other liabilities-divestiture (a)		-			1,466			1,870			1,925			39,389			(100	)%		(100	)%
Total liabilities		29,924,652			32,557,238			34,860,441			34,584,588			34,761,148			(8	)%		(14	)%
Preferred stock of subsidiary		295,277			295,277			295,277			295,277			295,277		NM			NM
Shareholders' Equity
Common stock		125,996			122,345			79,242			78,979			78,992			3	%		60	%
Capital surplus		1,016,498			980,428			362,823			361,826			360,016			4	%		182	%
Undivided profits		1,489,990			1,646,272			1,704,559			1,742,892			2,048,689			(9	)%		(27	)%
Accumulated other comprehensive loss, net		(48,037	)		(51,599	)		(34,397	)		(48,101	)		(65,870	)		(7	)%		(27	)%
Total shareholders' equity		2,584,447			2,697,446			2,112,227			2,135,596			2,421,827			(4	)%		7	%
Total liabilities and shareholders' equity	$	32,804,376		$	35,549,961		$	37,267,945		$	37,015,461		$	37,478,252			(8	)%		(12	)%

NM - Not meaningful
Certain previously reported amounts have been reclassified to agree with current presentation.
(a)	Second quarter 2008 associated with the sale of certain mortgage operations, prior periods associated with the sale of First Horizon Bank branches.
(b)	Includes $35.9 million of foreclosed assets related to government insured mortgages.
(c)	Third quarter 2008 includes $2.5 billion of FRB Term Auction Facility borrowings, $3.5 billion of FHLB borrowings, and $1.9 million of commercial paper.

10

CONSOLIDATED AVERAGE AND PERIOD-END LOANS
Quarterly, Unaudited
												3Q08 Change vs.
(Thousands)		3Q08		2Q08		1Q08		4Q07		3Q07			2Q08		3Q07
Average Loans (Net)
Commercial
Commercial, financial and industrial	$	7,530,724	$	7,212,907	$	7,121,890	$	6,957,498	$	7,061,103			4	%	7	%
Real estate commercial  (a)		1,497,773		1,401,267		1,347,377		1,301,866		1,363,363			7	%	10	%
Real estate construction  (b)		2,162,817		2,481,680		2,713,253		2,825,210		2,875,296			(13	)%	(25	)%
Total commercial loans		11,191,314		11,095,854		11,182,520		11,084,574		11,299,762			1	%	(1	)%
Retail
Real estate residential   (c)		8,166,295		7,878,845		7,774,415		7,605,345		7,601,422			4	%	7	%
Real estate construction  (d)		1,350,092		1,666,007		1,909,061		2,096,561		2,144,902			(19	)%	(37	)%
Other retail		138,848		138,242		141,961		144,116		149,714			*		(7	)%
Credit card receivables		193,517		193,850		195,081		201,153		194,376			*		*
Real estate loans pledged against
other collateralized borrowings   (e)		721,760		735,828		755,071		779,013		808,247			(2	)%	(11	)%
Total retail loans		10,570,512		10,612,772		10,775,589		10,826,188		10,898,661			*		(3	)%
Total loans, net of unearned income	$	21,761,826	$	21,708,626	$	21,958,109	$	21,910,762	$	22,198,423			*		(2	)%
Period-End Loans (Net)
Commercial
Commercial, financial and industrial	$	7,642,684	$	7,717,110	$	7,238,630	$	7,140,087	$	6,978,643			(1	)%	10	%
Real estate commercial  (a)		1,492,323		1,463,726		1,345,526		1,294,922		1,326,261			2	%	13	%
Real estate construction  (b)		2,020,455		2,271,533		2,602,968		2,753,475		2,828,545			(11	)%	(29	)%
Total commercial loans		11,155,462		11,452,369		11,187,124		11,188,484		11,133,449			(3	)%	*
Retail
Real estate residential   (c)		8,192,926		8,196,622		7,858,109		7,791,885		7,544,048			*		9	%
Real estate construction  (d)		1,201,911		1,513,845		1,814,863		2,008,289		2,160,593			(21	)%	(44	)%
Other retail		139,441		138,970		138,253		144,019		144,526			*		(4	)%
Credit card receivables		194,966		195,703		191,119		204,812		196,967			*		(1	)%
Real estate loans pledged against
other collateralized borrowings   (e)		717,192		727,723		742,552		766,027		793,421			(1	)%	(10	)%
Total retail loans		10,446,436		10,772,863		10,744,896		10,915,032		10,839,555			(3	)%	(4	)%
Total loans, net of unearned income	$	21,601,898	$	22,225,232	$	21,932,020	$	22,103,516	$	21,973,004			(3	)%	(2	)%

* Amount is less than one percent
(a)	Includes nonconstruction income property loans
(b)	Includes home builder, condominium, and income property construction loans
(c)	Includes home equity loans, home equity lines of credit and permanent mortgages
(d)	Includes one-time close product
(e)	Includes on balance sheet securitizations of home equity loans

11

CONSOLIDATED AVERAGE BALANCE SHEET
Quarterly, Unaudited
																	3Q08 Change vs.
(Thousands)		3Q08			2Q08			1Q08			4Q07			3Q07				2Q08			3Q07
Assets:
Earning assets:
Loans, net of unearned income*	$	21,761,826		$	21,708,626		$	21,958,109		$	21,910,762		$	22,198,423				**			(2	)%
Loans held for sale		1,950,831			3,606,621			3,728,008			3,337,237			3,963,650				(46	)%		(51	)%
Loans held for sale-divestiture (a)		-			195,175			248,751			467,424			-				(100	)%	NM
Investment securities:
U.S. Treasuries		47,843			47,123			43,305			36,062			151,831				2	%		(68	)%
U.S. government agencies		2,524,895			2,649,651			2,725,948			2,787,078			2,836,619				(5	)%		(11	)%
States and municipalities		31,682			31,347			12,847			1,740			1,750				1	%	NM
Other		268,939			257,907			232,472			230,808			237,291				4	%		13	%
Total investment securities		2,873,359			2,986,028			3,014,572			3,055,688			3,227,491				(4	)%		(11	)%
Capital markets securities inventory		1,355,501			1,630,501			1,961,964			1,934,055			1,810,703				(17	)%		(25	)%
Mortgage banking trading securities		304,278			387,469			405,579			527,453			545,201				(21	)%		(44	)%
Mortgage banking trading securities-divestiture (a)		62,131			981			-			-			-			NM			NM
Other earning assets:
Federal funds sold and securities
purchased under agreements to resell		1,213,510			1,275,548			1,304,707			1,237,957			1,224,193				(5	)%		(1	)%
Interest bearing deposits with other financial institutions		39,666			36,573			46,093			28,968			41,118				8	%		(4	)%
Total other earning assets		1,253,176			1,312,121			1,350,800			1,266,925			1,265,311				(4	)%		(1	)%
Total earning assets		29,561,102			31,827,522			32,667,783			32,499,544			33,010,779				(7	)%		(10	)%
Allowance for loan losses		(619,977	)		(529,124	)		(359,600	)		(246,916	)		(236,188	)			17	%		162	%
Cash and due from banks		638,467			697,013			786,693			846,793			788,636				(8	)%		(19	)%
Capital markets receivables		196,285			251,667			297,908			182,358			141,519				(22	)%		39	%
Premises and equipment, net		339,575			373,403			390,291			407,212			435,480				(9	)%		(22	)%
Other assets		3,219,952			3,517,017			3,367,729			3,540,575			3,613,812				(8	)%		(11	)%
Other assets-divestiture (a)		46,091			8,603			11,581			20,868			-				436	%	NM
Total assets	$	33,381,495		$	36,146,101		$	37,162,385		$	37,250,434		$	37,754,038				(8	)%		(12	)%
Liabilities and shareholders' equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Interest bearing deposits-divestiture (a)	$	-		$	30,695		$	127,352		$	292,615		$	-				(100	)%	NM
Other interest-bearing deposits		1,724,504			1,911,341			1,922,506			1,685,749			1,777,982				(10	)%		(3	)%
Savings		4,002,907			4,180,739			4,134,308			3,749,222			3,475,981				(4	)%		15	%
Time deposits		2,422,189			2,530,300			2,763,335			2,850,719			2,913,872				(4	)%		(17	)%
Total interest-bearing core deposits		8,149,600			8,653,075			8,947,501			8,578,305			8,167,835				(6	)%		**
Certificates of deposit $100,000 and more		1,839,651			2,022,972			2,696,781			4,464,070			6,802,371				(9	)%		(73	)%
Certificates of deposit $100,000 and more-divestiture (a)		-			279			4,770			30,499			-				(100	)%	NM
Federal funds purchased and securities
sold under agreements to repurchase		2,593,485			3,810,955			5,236,736			4,936,968			4,964,072				(32	)%		(48	)%
Federal funds purchased and securities
sold under agreements to repurchase-divestiture (a)		-			3,102			16,171			33,370			-				(100	)%	NM
Capital markets trading liabilities		708,875			768,565			846,369			812,969			773,576				(8	)%		(8	)%
Other short-term borrowings and commercial paper (b)		6,083,691			5,513,454			3,850,704			2,651,882			1,165,801				10	%		422	%
Long term debt:
Term borrowings		5,193,319			5,886,694			6,013,433			5,981,215			5,837,370				(12	)%		(11	)%
Other collateralized borrowings		756,999			792,388			790,811			813,075			807,143				(4	)%		(6	)%
Total long-term debt		5,950,318			6,679,082			6,804,244			6,794,290			6,644,513				(11	)%		(10	)%
Total interest-bearing liabilities		25,325,620			27,451,484			28,403,276			28,302,353			28,518,168				(8	)%		(11	)%
Noninterest-bearing deposits		4,031,157			4,619,333			4,743,479			4,838,363			5,096,766				(13	)%		(21	)%
Other noninterest-bearing deposits-divestiture (a)		3,038			8,902			21,327			54,928			-				(66	)%	NM
Capital markets payables		178,289			232,282			292,846			173,351			139,170				(23	)%		28	%
Other liabilities		827,244			995,931			1,234,695			1,262,345			1,276,262				(17	)%		(35	)%
Other liabilities-divestiture (a)		1,397			1,022			2,335			3,885			-				37	%	NM
Preferred stock of subsidiary		295,277			295,277			295,277			295,277			295,277				**			**
Shareholders' equity		2,719,473			2,541,870			2,169,150			2,319,932			2,428,395				7	%		12	%
Total liabilities and shareholders' equity	$	33,381,495		$	36,146,101		$	37,162,385		$	37,250,434		$	37,754,038				(8	)%		(12	)%

 * 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.
(a)	Third and second quarters 2008 associated with the sale of certain mortgage operations, prior periods associated with the sale of First Horizon Bank branches.
(b)	In third quarter 2008, FRB Term Auction Facility borrowings averaged $2.2 billion, FHLB borrowings averaged $3.4 billion, and commercial paper averaged $2.9 million.

12

CONSOLIDATED AVERAGE BALANCE SHEET: INCOME & EXPENSE
Quarterly, Unaudited
																	3Q08 Change vs.
(Thousands)		3Q08			2Q08			1Q08			4Q07			3Q07				2Q08			3Q07
Assets:
Earning assets:
Loans, net of unearned income*	$	281,777		$	285,539		$	331,803		$	385,027		$	413,376				(1	)%		(32	)%
Loans held for sale		29,078			54,217			58,438			62,249			66,570				(46	)%		(56	)%
Investment securities:
U.S. Treasuries		250			249			340			434			1,856				*			(87	)%
U.S. government agencies		34,886			36,573			37,954			39,027			40,293				(5	)%		(13	)%
States and municipalities		372			324			220			4			4				15	%	NM
Other		3,336			2,159			2,290			2,904			2,838				55	%		18	%
Total investment securities		38,844			39,305			40,804			42,369			44,991				(1	)%		(14	)%
Capital markets securities inventory		15,898			18,131			22,652			25,261			25,321				(12	)%		(37	)%
Mortgage banking trading securities		11,781			12,120			13,363			16,436			16,647				(3	)%		(29	)%
Other earning assets:
Federal funds sold and securities
purchased under agreements to resell		5,944			6,266			9,341			13,485			15,297				(5	)%		(61	)%
Interest bearing deposits with other financial institutions		253			189			357			450			705				34	%		(64	)%
Total other earning assets		6,197			6,455			9,698			13,935			16,002				(4	)%		(61	)%
Total earning assets/interest income	$	383,575		$	415,767		$	476,758		$	545,277		$	582,907				(8	)%		(34	)%
Liabilities and shareholders' equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Other interest-bearing deposits	$	2,849		$	3,556		$	5,906		$	5,976		$	6,179				(20	)%		(54	)%
Savings		17,005			18,362			25,888			30,864			29,140				(7	)%		(42	)%
Time deposits		22,443			25,540			31,502			35,234			34,745				(12	)%		(35	)%
Total interest-bearing core deposits		42,297			47,458			63,296			72,074			70,064				(11	)%		(40	)%
Certificates of deposit $100,000 and more		15,184			17,361			31,069			59,851			92,556				(13	)%		(84	)%
Federal funds purchased and securities
sold under agreements to repurchase		10,696			17,834			38,521			52,635			60,287				(40	)%		(82	)%
Capital markets trading liabilities		8,304			9,400			9,615			10,588			10,295				(12	)%		(19	)%
Other short-term borrowings and commercial paper		36,496			31,591			31,527			30,229			14,827				16	%		146	%
Long term debt:
Term borrowings		41,598			47,129			66,303			82,870			85,241				(12	)%		(51	)%
Other collateralized borrowings		5,521			5,817			8,020			10,902			11,661				(5	)%		(53	)%
Total long-term debt		47,119			52,946			74,323			93,772			96,902				(11	)%		(51	)%
Total interest-bearing liabilities/interest expense	$	160,096		$	176,590		$	248,351		$	319,149		$	344,931				(9	)%		(54	)%
Net interest income-tax equivalent basis	$	223,479		$	239,177		$	228,407		$	226,128		$	237,976				(7	)%		(6	)%
Fully taxable equivalent adjustment		(332	)		(282	)		(315	)		(141	)		(172	)		NM			NM
Net interest income	$	223,147		$	238,895		$	228,092		$	225,987		$	237,804				(7	)%		(6	)%

* Includes loans on nonaccrual status

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

NM - Not meaningful

13

CONSOLIDATED AVERAGE BALANCE SHEET: YIELDS & RATES
Quarterly, Unaudited
(Thousands)	3Q08		2Q08		1Q08			4Q07		3Q07
Assets:
Earning assets:
Loans, net of unearned income*	5.16	%	5.29	%	6.07	%		6.98	%	7.39	%
Loans held for sale	5.96		5.70		5.88			6.54		6.72
Investment securities:
U.S. Treasuries	2.08		2.13		3.15			4.77		4.85
U.S. government agencies	5.53		5.52		5.57			5.60		5.68
States and municipalities	4.70		4.14		6.87			.82		.83
Other	4.96		3.35		3.94			5.03		4.78
Total investment securities	5.41		5.27		5.41			5.55		5.57
Capital markets securities inventory	4.69		4.45		4.62			5.22		5.59
Mortgage banking trading securities	12.86		12.48		13.18			12.46		12.21
Other earning assets:
Federal funds sold and securities
purchased under agreements to resell	1.95		1.98		2.88			4.32		4.96
Interest bearing deposits with other financial institutions	2.54		2.08		3.11			6.17		6.80
Total other earning assets	1.97		1.98		2.89			4.36		5.02
Total earning assets/interest income	5.17	%	5.24	%	5.86	%		6.67	%	7.02	%
Liabilities and shareholders' equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Other interest-bearing deposits	.66	%	.74	%	1.19	%		1.33	%	1.38	%
Savings	1.69		1.76		2.50			3.19		3.33
Time deposits	3.69		4.06		4.55			4.73		4.73
Total interest-bearing core deposits	2.06		2.21		2.85			3.33		3.40
Certificates of deposit $100,000 and more	3.28		3.45		4.63			5.28		5.40
Federal funds purchased and securities
sold under agreements to repurchase	1.64		1.88		2.95			4.20		4.82
Capital markets trading liabilities	4.66		4.92		4.57			5.17		5.28
Other short-term borrowings and commercial paper	2.39		2.30		3.29			4.52		5.05
Long term debt:
Term borrowings	3.21		3.20		4.41			5.55		5.85
Other collateralized borrowings	2.92		2.94		4.06			5.36		5.78
Total long-term debt	3.17		3.17		4.37			5.52		5.84
Total interest-bearing liabilities/interest expense	2.52	%	2.58	%	3.51	%		4.49	%	4.81	%
Net interest spread	2.65	%	2.66	%	2.35	%		2.18	%	2.21	%
Effect of interest-free sources used to fund
earning assets	.36		.35		.46			.59		.66
Net interest margin	3.01	%	3.01	%	2.81	%		2.77	%	2.87	%

* 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.

14

MORTGAGE SERVICING RIGHTS
Quarterly, Unaudited
																3Q08 Change vs.
(Thousands)		3Q08			2Q08			1Q08			4Q07			3Q07			2Q08		3Q07
First Liens
Fair value beginning balance	$	1,111,204		$	865,855		$	1,122,415		$	1,429,245		$	1,481,727			28	%	(25	)%
Addition of mortgage servicing rights		61,500			100,305			78,871			67,300			97,084
Reductions due to loan payments		(20,091	)		(38,598	)		(37,448	)		(40,930	)		(48,964	)
Reductions due to sale		(320,482	)		(72,271	)		(43,842	)		(96,502	)		-
Changes in fair value due to:
Changes in valuation model inputs
or assumptions (a)		(39,194	)		255,890			(254,076	)		(236,695	)		(100,602	)
Other changes in fair value		(22,316	)		23			(65	)		(3	)		-
Fair value ending balance	$	770,621		$	1,111,204		$	865,855		$	1,122,415		$	1,429,245			(31	)%	(46	)%
Second Liens
Fair value beginning balance	$	18,138		$	20,126		$	25,832		$	28,747		$	27,608			(10	)%	(34	)%
Addition of mortgage servicing rights		-			-			-			-			3,587
Reductions due to loan payments		(614	)		(1,737	)		(2,617	)		(2,097	)		(2,559	)
Changes in fair value due to:
Changes in valuation model inputs
or assumptions (a)		-			(254	)		(3,089	)		(834	)		32
Other changes in fair value		3			3			-			16			79
Fair value ending balance	$	17,527		$	18,138		$	20,126		$	25,832		$	28,747			(3	)%	(39	)%
HELOC
Fair value beginning balance	$	10,053		$	9,942		$	11,573		$	12,597		$	13,631			1	%	(26	)%
Addition of mortgage servicing rights		43			215			887			174			87
Reductions due to loan payments		(483	)		(491	)		(707	)		(736	)		(1,124	)
Changes in fair value due to:
Changes in valuation model inputs
or assumptions (a)		-			(230	)		(1,935	)		(462	)		(39	)
Other changes in fair value		730			617			124			-			42
Fair value ending balance	$	10,343		$	10,053		$	9,942		$	11,573		$	12,597			3	%	(18	)%
Total Consolidated
Fair value beginning balance	$	1,139,395		$	895,923		$	1,159,820		$	1,470,589		$	1,522,966			27	%	(25	)%
Addition of mortgage servicing rights		61,543			100,520			79,758			67,474			100,758
Reductions due to loan payments		(21,188	)		(40,826	)		(40,772	)		(43,763	)		(52,647	)
Reductions due to sale		(320,482	)		(72,271	)		(43,842	)		(96,502	)		-
Changes in fair value due to:
Changes in valuation model inputs
or assumptions (a)		(39,194	)		255,406			(259,100	)		(237,991	)		(100,609	)
Other changes in fair value		(21,583	)		643			59			13			121
Fair value ending balance	$	798,491		$	1,139,395		$	895,923		$	1,159,820		$	1,470,589			(30	)%	(46	)%

(a) Principally reflects changes in discount rates and prepayment speed assumptions, mostly due to changes in interest rates

15

BUSINESS SEGMENT HIGHLIGHTS
Quarterly, Unaudited
																	3Q08 Change vs.
(Thousands)		3Q08			2Q08			1Q08			4Q07			3Q07				2Q08			3Q07
Regional Banking
Total revenues(a)	$	210,298		$	212,920		$	207,636		$	229,125		$	228,578				(1	)%		(8	)%
Provision for loan losses		58,201			89,477			75,264			15,831			18,523				(35	)%		214	%
Noninterest expenses		158,628			150,294			150,523			159,882			153,816				6	%		3	%
Pre-tax income/(loss)		(6,531	)		(26,851	)		(18,151	)		53,412			56,239				(76	)%	NM
Provision/(benefit) for income taxes		(11,670	)		(19,838	)		(13,541	)		27,026			19,798				(41	)%	NM
Net income/(loss) from continuing operations		5,139			(7,013	)		(4,610	)		26,386			36,441			NM				(86	)%
Income from discontinued operations, net of tax		-			-			883			4,137			209			NM			NM
Net income/(loss)	$	5,139		$	(7,013	)	$	(3,727	)	$	30,523		$	36,650			NM				(86	)%
National Specialty Lending
Total revenues(a)	$	49,417		$	39,052		$	55,040		$	54,321		$	62,413				27	%		(21	)%
Provision for loan losses		240,470			108,000			149,483			139,398			22,807				123	%		954	%
Noninterest expenses		23,487			26,675			25,146			31,067			33,622				(12	)%		(30	)%
Pre-tax income/(loss)		(214,540	)		(95,623	)		(119,589	)		(116,144	)		5,984			NM			NM
Provision/(benefit) for income taxes		(79,491	)		(33,528	)		(46,359	)		(43,859	)		1,810				137	%	NM
Net income/(loss)	$	(135,049	)	$	(62,095	)	$	(73,230	)	$	(72,285	)	$	4,174			NM			NM
Mortgage Banking
Total revenues(a)	$	138,344		$	222,297		$	198,066		$	(79,826	)	$	69,059				(38	)%		100	%
Provision for loan losses		2,878			4,001			222			46			4				(28	)%	NM
Noninterest expenses		89,040			149,062			147,543			174,203			108,303				(40	)%		(18	)%
Pre-tax income/(loss)		46,426			69,234			50,301			(254,075	)		(39,248	)			(33	)%	NM
Provision/(benefit) for income taxes		16,648			22,960			18,129			(99,185	)		(13,984	)			(27	)%	NM
Net income/(loss)	$	29,778		$	46,274		$	32,172		$	(154,890	)	$	(25,264	)			(36	)%	NM
Capital Markets
Total revenues(a)	$	117,527		$	143,150		$	153,579		$	119,191		$	78,622				(18	)%		49	%
Provision for loan losses		38,451			18,522			15,031			1,244			2,018				108	%	NM
Noninterest expenses		87,674			100,559			115,728			87,042			73,921				(13	)%		19	%
Pre-tax income/(loss)		(8,598	)		24,069			22,820			30,905			2,683			NM			NM
Provision/(benefit) for income taxes		(3,375	)		8,960			8,437			11,572			900			NM			NM
Net income/(loss)	$	(5,223	)	$	15,109		$	14,383		$	19,333		$	1,783			NM			NM
Corporate
Total revenues(a)	$	12,734		$	20,522		$	62,847		$	(3,837	)	$	2,607				(38	)%		388	%
Provision for loan losses		-			-			-			-			-				-			-
Noninterest expenses		32,445			39,253			(663	)		109,365			51,960				(17	)%		(38	)%
Pre-tax income/(loss)		(19,711	)		(18,731	)		63,510			(113,202	)		(49,353	)		NM			NM
Provision/(benefit) for income taxes		(6,776	)		(7,375	)		25,188			(41,896	)		(17,854	)		NM			NM
Net income/(loss)	$	(12,935	)	$	(11,356	)	$	38,322		$	(71,306	)	$	(31,499	)		NM			NM
Total Consolidated
Total revenues(a)	$	528,320		$	637,941		$	677,168		$	318,974		$	441,279				(17	)%		20	%
Provision for loan losses		340,000			220,000			240,000			156,519			43,352				55	%		684	%
Noninterest expenses		391,274			465,843			438,277			561,559			421,622				(16	)%		(7	)%
Pre-tax income/(loss)		(202,954	)		(47,902	)		(1,109	)		(399,104	)		(23,695	)		NM			NM
Provision/(benefit) for income taxes		(84,664	)		(28,821	)		(8,146	)		(146,342	)		(9,330	)			194	%		807	%
Net income/(loss) from continuing operations		(118,290	)		(19,081	)		7,037			(252,762	)		(14,365	)		NM			NM
Income from discontinued operations, net of tax		-			-			883			4,137			209				-		NM
Net income/(loss)	$	(118,290	)	$	(19,081	)	$	7,920		$	(248,625	)	$	(14,156	)		NM			NM

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

NM - Not meaningful

16

REGIONAL BANKING
Quarterly, Unaudited
																	3Q08 Change vs.
(Thousands)		3Q08			2Q08			1Q08			4Q07			3Q07				2Q08			3Q07
Income Statement
Net interest income	$	122,379		$	120,384		$	120,565		$	133,613		$	136,935				2	%		(11	)%
Noninterest income		87,919			92,536			87,071			95,511			91,644				(5	)%		(4	)%
Securities gains/(losses), net		-			-			-			1			(1	)			-			(100	)%
Total revenue		210,298			212,920			207,636			229,125		$	228,578				(1	)%		(8	)%
Total noninterest expense		158,628			150,294			150,523			159,882			153,816				6	%		3	%
Provision		58,201			89,477			75,264			15,831			18,523				(35	)%		214	%
Pretax (loss)/income	$	(6,531	)	$	(26,851	)	$	(18,151	)	$	53,412		$	56,239				(76	)%		(112	)%
Efficiency ratio		75.43	%		70.59	%		72.49	%		69.78	%		67.29	%
Balance Sheet (millions)
Average loans	$	10,915		$	10,801		$	10,705		$	10,667		$	11,162				1	%		(2	)%
Other earning assets		65			242			339			525			35				(73	)%		86	%
Total earning assets		10,980			11,043			11,044			11,192			11,197				(1	)%		(2	)%
Core deposits		9,564			9,970			10,059			9,854			10,153				(4	)%		(6	)%
Other deposits		976			1,053			1,160			1,369			1,368				(7	)%		(29	)%
Deposits - divestiture		-			37			153			378			-				(100	)%		-
Total deposits		10,540			11,060			11,372			11,601			11,521				(5	)%		(9	)%
Total period end deposits		10,621			11,035			11,370			11,679			11,598				(4	)%		(8	)%
Total period end assets	$	12,301		$	12,234		$	12,172		$	12,674		$	12,688				1	%		(3	)%
Net interest margin		4.43	%		4.38	%		4.39	%		4.74	%		4.85	%
Noninterest Income Detail
Deposit transactions & cash mgmt	$	44,470		$	45,404		$	41,230		$	46,648		$	43,631				(2	)%		2	%
Insurance commissions		7,160			7,033			7,854			7,485			6,507				2	%		10	%
Trust services & investment mgmt		8,192			8,915			9,147			10,137			9,972				(8	)%		(18	)%
Bankcard Income		4,706			4,752			4,491			5,035			5,065				(1	)%		(7	)%
Other service charges		3,556			3,780			4,037			4,152			4,185				(6	)%		(15	)%
Miscellaneous revenue		19,835			22,652			20,312			22,054			22,284				(12	)%		(11	)%
Total noninterest income	$	87,919		$	92,536		$	87,071		$	95,511		$	91,644				(5	)%		(4	)%
Key Statistics
Locations
Full-Service Financial Centers		200			198			206			216			233				1	%		(14	)%
First Tennessee		200			198			197			197			199				1	%		1	%
First Horizon Bank		-			-			9			19			34				-		NM
Trust Assets
Total assets (millions)	$	11,015		$	11,291		$	11,681		$	12,300		$	12,954				(2	)%		(15	)%
Total managed assets (millions)		5,089			5,373			5,641			5,880			6,645				(5	)%		(23	)%

NM - Not meaningful

* Amount is less than one percent.

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

17

CAPITAL MARKETS
Quarterly, Unaudited
																	3Q08 Change vs.
(Thousands)		3Q08			2Q08			1Q08			4Q07			3Q07				2Q08			3Q07
Income Statement
Net interest income
Correspondent Banking	$	11,841		$	12,399		$	12,808		$	11,437		$	12,483				(5	)%		(5	)%
Capital Markets		7,151			6,094			6,841			4,389			1,655				17	%		332	%
Total net interest income		18,992			18,493			19,649			15,826			14,138				3	%		34	%
Noninterest income:
Fixed income		80,104			105,002			152,208			77,126			46,003				(24	)%		74	%
Other		18,431			19,655			(18,278	)		26,239			18,481				(6	)%		*
Total noninterest income		98,535			124,657			133,930			103,365			64,484				(21	)%		53	%
Total revenue		117,527			143,150			153,579			119,191			78,622				(18	)%		49	%
Noninterest expense		87,674			100,559			115,728			87,042			73,921				(13	)%		19	%
Provision		38,451			18,522			15,031			1,244			2,018				108	%	NM
Pretax (loss)/income	$	(8,598	)	$	24,069		$	22,820		$	30,905		$	2,683				(136	)%		(420	)%
Efficiency ratio		74.60	%		70.25	%		75.35	%		73.03	%		94.02	%
Balance Sheet (millions)
Trading inventory	$	1,356		$	1,631		$	1,962		$	1,934		$	1,810				(17	)%		(25	)%
Average Loans (a)		1,759			1,491			1,465			1,402			1,291				18	%		36	%
Other earning assets		1,275			1,656			1,728			1,708			1,532				(23	)%		(17	)%
Total earning assets		4,390			4,778			5,155			5,044			4,633				(8	)%		(5	)%
Total period end assets	$	5,968		$	5,602		$	6,154		$	5,265		$	5,868				7	%		2	%
Net interest margin:
Correspondent Banking		2.97	%		3.06	%		3.28	%		3.01	%		3.17	%			(3	)%		(6	)%
Capital Markets		1.01	%		.78	%		.77	%		.49	%		.21	%			29	%		381	%
Total Capital Markets		1.72	%		1.56	%		1.53	%		1.24	%		1.21	%

NM - Not meaningful

* Amount is less than one percent.

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

(a) Includes trust preferred warehouse loans moved from loans held for sale to loans held to maturity in 2Q08.

18

NATIONAL SPECIALTY LENDING
Quarterly, Unaudited
																	3Q08 Change vs.
(Thousands)		3Q08			2Q08			1Q08			4Q07			3Q07				2Q08			3Q07
Income Statement
Net interest income	$	45,236		$	53,555		$	54,389		$	58,698		$	61,218				(16	)%		(26	)%
Noninterest income		4,181			(14,503	)		651			(4,377	)		1,195				NM			250	%
Total revenue		49,417			39,052			55,040			54,321			62,413				27	%		(21	)%
Total noninterest expense		23,487			26,675			25,146			31,067			33,622				(12	)%		(30	)%
Provision		240,470			108,000			149,483			139,398			22,807				123	%		954	%
Pretax (loss)/income	$	(214,540	)	$	(95,623	)	$	(119,589	)	$	(116,144	)	$	5,984				NM		NM
Efficiency ratio		47.53	%		68.31	%		45.69	%		57.19	%		53.87	%
Balance Sheet (millions)
Average loans	$	8,407		$	8,953		$	9,384		$	9,450		$	9,345				(6	)%		(10	)%
Other earning assets		8			17			21			175			355				(53	)%		(98	)%
Total earning assets		8,415			8,970			9,405			9,625			9,700				(6	)%		(13	)%
Total deposits		181			240			291			353			423				(25	)%		(57	)%
Total period end deposits		156			208			260			317			368				(25	)%		(58	)%
Net interest margin		2.14	%		2.40	%		2.33	%		2.42	%		2.50	%

NM - Not meaningful

* Amount is less than one percent.

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

19

MORTGAGE BANKING
Quarterly, Unaudited
																	3Q08 Change vs.
(Thousands)		3Q08			2Q08			1Q08			4Q07			3Q07				2Q08		3Q07
Income Statement
Net interest income	$	22,524		$	31,835		$	30,052		$	22,852		$	26,939			NM		NM
Noninterest income
Net origination fees (a)		19,829			134,095			84,056			5,008			(17,494	)		NM		NM
Net servicing fees		80,603			42,614			69,343			(118,107	)		49,738			NM		NM
Other fees		15,388			13,753			14,615			10,421			9,876			NM		NM
Total noninterest income		115,820			190,462			168,014			(102,678	)		42,120			NM		NM
Total revenue		138,344			222,297			198,066			(79,826	)		69,059			NM		NM
Noninterest expense (b)		89,040			149,062			147,543			174,203			108,303			NM		NM
Provision		2,878			4,001			222			46			4			NM		NM
Pretax income/(loss)	$	46,426		$	69,234		$	50,301		$	(254,075	)	$	(39,248	)		NM		NM
Efficiency ratio		64.36	%		67.06	%		74.49	%		(218.23	)%		156.83	%
Average Balance Sheet (millions)
Warehouse	$	1,810		$	3,182		$	3,230		$	2,672		$	3,311			NM		NM
Trading securities		359			372			387			511			524			NM		NM
Mortgage servicing rights		1,003			974			1,020			1,354			1,465			NM		NM
Permanent Mortgages & other assets		1,719			1,706			1,482			1,348			1,326			NM		NM
Total assets		4,891			6,234			6,119			5,885			6,626			NM		NM
Escrow balances		989			1,516			1,691			1,709			1,894			NM		NM
Net interest margin		3.05	%		3.15	%		2.98	%		2.48	%		2.47	%
Warehouse Spread		3.83	%		3.14	%		2.63	%		1.54	%		1.34	%
Noninterest Expense Detail
Commissions & incentives (a)	$	18,415		$	41,369		$	45,956		$	39,359		$	45,112
FAS 91 cost deferral (a)		1,097			1,789			764			(3,878	)		6,392
Other salaries & benefits		22,011			39,228			35,700			38,727			49,147
Total salaries & benefits		41,523			82,386			82,420			74,208			100,651			NM		NM
Contract labor & outsourcing		5,207			3,654			2,781			1,968			2,941
Equipment & occupancy		8,882			13,513			14,895			14,814			17,177
Foreclosure provision		849			5,535			2,395			4,872			(241	)
Other expenses (a)		32,636			43,536			45,115			120,155			44,327
Total expenses before FAS 91 reclass		89,097			148,624			147,606			216,017			164,855			NM		NM
FAS 91 reclassification (a)(c)		(3,064	)		(4,520	)		(3,962	)		(46,133	)		(61,505	)
Total noninterest expense before
segment allocations		86,033			144,104			143,644			169,884			103,350
Segment allocations		3,007			4,958			3,899			4,319			4,953
Total noninterest expense	$	89,040		$	149,062		$	147,543		$	174,203		$	108,303			NM		NM

NM - Not meaningful due to mortgage sale in Q3 2008.

* Amount is less than one percent.

(a) 3Q08, 2Q08, and 1Q08 include effect of adopting accounting standards, including fair value election for warehouse loans

(b) 4Q07 includes $71.1 million of goodwill impairment

(c) See Glossary of Terms

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

20

MORTGAGE BANKING: ORIGINATION INCOME
Quarterly, Unaudited
																	3Q08 Change vs.
(Thousands)		3Q08			2Q08			1Q08			4Q07			3Q07				2Q08		3Q07
Origination Income
Origination fees	$	22,995		$	48,555		$	54,636		$	47,789		$	56,042
FAS 91 fee deferral (a)		937			1,381			-			(4,818	)		5,563
Appraisal, final inspection,
credit report fees		2,824			5,537			5,953			5,387			6,864
Total origination fees		26,756			55,473			60,589			48,358			68,469			NM		NM
Secondary marketing income
Prime
OMSR, SRP		60,590			98,787			77,899			66,443			96,527
Marketing G/L (Trading Gains)		(28,547	)		39,447			(33,243	)		(17,247	)		(57,655	)
Concessions		(20,218	)		(36,016	)		(41,146	)		(26,174	)		(49,551	)
LOCOM		(878	)		(4,566	)		(16,582	)		(17,631	)		(11,530	)
Subtotal Prime		10,947			97,652			(13,072	)		5,391			(22,209	)		NM		NM
Non-Prime
OMSR, SRP		10			(6,824	)		(1,482	)		(1,430	)		727
LOCOM		(462	)		(458	)		(433	)		(1,178	)		(2,976	)
Subtotal Non-Prime		(452	)		(7,282	)		(1,915	)		(2,608	)		(2,249	)		NM		NM
Total Secondary Marketing income		10,495			90,370			(14,987	)		2,783			(24,458	)		NM		NM
FAS 91 Reclassification (a)		(3,064	)		(4,520	)		(3,962	)		(46,133	)		(61,505	)		NM		NM
Accounting Standards Adoption (b)		(14,359	)		(7,228	)		42,416			-			-
Total Origination Income	$	19,829		$	134,095		$	84,056		$	5,008		$	( 17,494	)		NM		NM
Margins
Marketing margin on deliveries (bps):
OMSR, SRP		121			127			104			118			132
Marketing G/L (Trading Gains)		(57	)		55			(45	)		(31	)		(78	)
Concessions		(40	)		(50	)		(56	)		(48	)		(67	)
LOCOM		(3	)		(7	)		(23	)		(34	)		(20	)
Total Marketing Margin on Deliveries		21			125			(20	)		5			(33	)

NM - Not meaningful due to mortgage sale in Q3 2008.

(a) 1Q08 decrease due to effects of fair value election for warehouse loans.

(b) Net effect of adopting SFAS 157, SFAS 159, and SAB 109.

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

21

MORTGAGE BANKING: ORIGINATION METRICS
Quarterly, Unaudited
																3Q08 Change vs.
($ in millions)		3Q08			2Q08			1Q08			4Q07			3Q07			2Q08			3Q07
Production
First lien production	$	3,107		$	6,826		$	7,510		$	6,308		$	6,672			(54	)%		(53	)%
Breakdown by Product Type
Prime
Conventional Fixed		39	%		53	%		65	%		63	%		58	%
Conventional ARM		2	%		1	%		7	%		3	%		5	%
Jumbo Fixed		3	%		2	%		2	%		6	%		7	%
Jumbo ARM		-			-			2	%		3	%		6	%
Alt A		-			-			2	%		6	%		12	%
Government		53	%		42	%		21	%		17	%		9	%
Non Prime		-			-			-			-			-
Other		3	%		2	%		1	%		2	%		3	%
Breakdown by Payment Type
Fully amortizing		98	%		97	%		92	%		89	%		78	%
Interest only - fixed		-			2	%		3	%		7	%		13	%
Interest only - ARM		2	%		1	%		5	%		4	%		9	%
Option ARMs		-			-			-			-			-
Production Refinanced %		29	%		48	%		64	%		47	%		31	%
Production Purchased %		71	%		52	%		36	%		53	%		69	%
ARMs % (Excluding Gov't ARMS)		2	%		1	%		9	%		6	%		13	%
Warehouse/Pipeline
Ending Warehouse Balance	$	537		$	2,433		$	3,130		$	2,971		$	2,083		NM			NM
Ending Pipeline Balance (Locked)		65			1,913			5,293			3,363			4,088		NM			NM
Loan Sales (Deliveries)
Prime		5,043			7,247			7,410			5,504			7,398		NM			NM
Non-Prime		-			-			-			-			1		NM			NM
Total Loan Sales	$	5,043		$	7,247		$	7,410		$	5,504		$	7,399		NM			NM

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.
Alt-A & GSE Expanded Approval:  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.
	Non-Prime:	Mortgage loans made to borrowers who typically have derogatory information in their credit history;
		non-prime loans are also made to borrowers with acceptable credit history but have other non-standard loan features.
	Government:	FHA/VA loans that are eligible for GNMA securitizations and government guarantees.
NM - Not meaningful
* Amount is less than one percent.

22

MORTGAGE BANKING: SERVICING
Quarterly, Unaudited
																3Q08 Change vs.
(Thousands)		3Q08			2Q08			1Q08			4Q07			3Q07			2Q08		3Q07
Servicing Income
Gross Service Fees	$	57,326		$	74,941		$	88,891		$	90,153		$	90,694
Guarantee Fees		(11,073	)		(16,762	)		(18,791	)		(19,775	)		(19,312	)
Sub-Service Fee Income		394			504			243			244			1
Lender Paid MI		(1,029	)		(3	)		(4	)		(21	)		(9	)
Net Service Fees		45,618			58,680			70,339			70,601			71,374			(22	)%	(36	)%
Early Payoff Interest Expense		(1,733	)		(4,477	)		(5,446	)		(3,626	)		(3,409	)
Ancillary Fees		5,994			8,991			9,214			9,192			8,696
Total Service Fees		49,879			63,194			74,107			76,167			76,661			(21	)%	(35	)%
Change in MSR Value - Runoff		(20,091	)		(37,079	)		(37,449	)		(40,930	)		(48,963	)		NM		NM
Net hedging results:
Change in MSR Value - Other than Runoff**		(39,180	)		237,816			(255,485	)		(234,998	)		(102,887	)
MSR Hedge Gains/(Losses)		91,804			(219,454	)		280,935			119,651			126,742
Change in Trading Asset Value**		(11,198	)		83,543			(74,136	)		(73,496	)		(24,046	)
Trading Asset Hedge Gains/(Losses)		21,505			(78,832	)		86,322			59,022			29,343
Option Expense on Servicing Hedges		(12,116	)		(6,574	)		(4,950	)		(23,523	)		(7,112	)
Total net hedging results		50,815			16,499			32,686			(153,344	)		22,040			208	%	131	%
Total Servicing Income	$	80,603		$	42,614		$	69,344		$	( 118,107	)	$	49,738			89	%	62	%
Key Servicing Metrics (millions)
Beginning Servicing Portfolio	$	98,385		$	99,022		$	103,709		$	108,401		$	105,652
Additions to portfolio		3,107			6,991			7,650			6,399			6,484
Prepayments		(1,350	)		(2,811	)		(4,144	)		(2,931	)		(2,829	)
Amortization		(550	)		(672	)		(675	)		(725	)		(707	)
Service Release Sales		(117	)		(76	)		(69	)		(166	)		(199	)
Bulk Sale		(34,129	)		(4,069	)		(7,449	)		(7,269	)		-
Ending Servicing Portfolio (Owned)	$	65,346		$	98,385		$	99,022		$	103,709		$	108,401			(34	)%	(40	)%
Avg. Servicing Portfolio (Owned)	$	81,130		$	95,124		$	103,794		$	107,259		$	107,073			(15	)%	(24	)%
Average Loans Serviced (#)		450,651			547,828			618,505			632,482			652,479			(18	)%	(31	)%
Portfolio Product Mix (Average)
GNMA		5	%		10	%		8	%		8	%		7	%
FNMA/FHLMC		64	%		63	%		64	%		65	%		65	%
Private		30	%		24	%		25	%		24	%		25	%
Sub-Total		99	%		97	%		97	%		97	%		97	%
Warehouse		1	%		3	%		3	%		3	%		3	%
Total		100	%		100	%		100	%		100	%		100	%
Other Portfolio Statistics
Net Service Fees - Annualized (bps)		22			25			27			26			27
Total Service Fees - Annualized (bps)		25			27			29			28			29
Ancillary Income per Loan (Annualized)	$	53.20		$	65.65		$	59.59		$	58.13		$	53.31			(19	)%	*
Servicing Cost per Loan (Annualized)	$	62.45		$	61.22		$	56.39		$	50.56		$	48.15			2	%	30	%
Average Servicing Asset (millions)***		1,002			973			1,019			1,353			1,465
Servicing Book Value (bps)		124			102			98			126			137
90+  Delinquency Rate, excluding foreclosures		2.58	%		2.08	%		1.73	%		1.48	%		1.18	%
Change in MSR Asset /
Average Servicing Asset		(13	)%		8	%		5	%		46	%		7	%
Run-Off Rate - Annualized		10	%		14	%		18	%		14	%		13	%

NM - Not meaningful

* Amount is less than one percent.

** 4Q07 includes a portion of the $135 million valuation adjustment

*** Includes valuation reserve/MSRs only

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

23

CORPORATE
Quarterly, Unaudited
																	3Q08 Change vs.
(Thousands)		3Q08			2Q08			1Q08			4Q07			3Q07				2Q08			3Q07
Income Statement
Net interest income/(expense)	$	14,382		$	14,771		$	3,558		$	(4,795	)	$	(1,224	)			(3	)%	NM
Net interest expense from
deferred compensation		(366	)		(143	)		(121	)		(207	)		(202	)			156	%		81	%
Total net interest income/(expense)		14,016			14,628			3,437			(5,002	)		(1,426	)			(4	)%	NM
Noninterest income		4,073			5,541			14			13,275			3,506				(26	)%		16	%
Noninterest income from
deferred compensation		(5,145	)		1,325			(6,550	)		(1,667	)		526				(488	)%	NM
Total noninterest income		(1,072	)		6,866			(6,536	)		11,608			4,032				(116	)%		(127	)%
Securities (losses)/gains, net		(210	)		(972	)		65,946			(10,443	)		1				(78	)%	NM
Total revenue		12,734			20,522			62,847			(3,837	)		2,607				(38	)%		388	%
Noninterest expense		39,900			37,433			7,414			110,753			51,345				7	%		(22	)%
Deferred compensation expense		(7,455	)		1,820			(8,077	)		(1,388	)		615				(510	)%	NM
Total noninterest expense		32,445			39,253			(663	)		109,365			51,960				(17	)%		(38	)%
Pretax (loss)/income	$	(19,711	)	$	(18,731	)	$	63,510		$	(113,202	)	$	(49,353	)			NM			NM
Average Balance Sheet (millions)
Total earning assets		2,835			2,974			3,001			2,986			3,163				(5	)%		(10	)%
Net interest margin		1.97	%		1.98	%		.46	%		(.66	)%		(.18	)%

NM - Not meaningful

* Amount is less than one percent.

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

24

CAPITAL HIGHLIGHTS
Quarterly, Unaudited
																3Q08 Change vs.
(Dollars in millions, except per share amounts)		3Q08			2Q08			1Q08			4Q07			3Q07			2Q08		3Q07
Tier 1 Capital (a)	$	2,940.8		$	3,034.7		$	2,443.9		$	2,459.5		$	2,666.8			(3	)%	10	%
Tier 2 Capital (a)		1,319.9			1,341.7			1,421.0			1,400.5			1,321.4			(2	)%	*
Total Capital (a)	$	4,260.7		$	4,376.4		$	3,864.9		$	3,860.0		$	3,988.2			(3	)%	7	%
Risk-Adjusted Assets (a)	$	26,933.7		$	28,884.7		$	29,709.3		$	30,271.9		$	31,041.9			(7	)%	(13	)%
Tier 1 Ratio (a)		10.92	%		10.51	%		8.23	%		8.12	%		8.59	%
Tier 2 Ratio (a)		4.90			4.64			4.78			4.63			4.26
Total Capital Ratio (a)		15.82	%		15.15	%		13.01	%		12.75	%		12.85	%
Leverage Ratio (a)		8.86	%		8.45	%		6.62	%		6.64	%		7.12	%
Shareholders' Equity/Assets Ratio (b)		7.88			7.59			5.67			5.77			6.46
Tangible Equity/RWA (a)		8.64			8.45			6.17			6.16			6.75
Tangible Common Equity/Tangible Assets		7.20			6.96			5.04			5.13			5.64
Tangible Book Value (c)	$	11.60		$	12.14		$	14.23		$	14.42		$	16.02
Book Value (c)		12.79			13.34			16.10			16.33			18.51

NM - Not meaningful

* Amount is less than one percent.

(a)  Current quarter is an estimate

(b)  Calculated on period-end balances

(c)  Current and prior periods reflect the effect of the stock dividend

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

25

ASSET QUALITY: CONSOLIDATED
Quarterly, Unaudited
																3Q08 Change vs.
(Thousands)		3Q08			2Q08			1Q08			4Q07			3Q07			2Q08			3Q07
Allowance for Loan Losses Walk-Forward
Beginning Reserve	$	575,149		$	483,203		$	342,341		$	236,611		$	229,919			19	%		150	%
Provision		340,000			220,000			240,000			156,519			43,352			55	%		684	%
Divestitures/acquisitions/transfers		-			(382	)		-			4			(5,276	)		NM			NM
Charge-offs		(160,200	)		(131,385	)		(101,756	)		(54,891	)		(35,858	)		22	%		347	%
Recoveries		5,507			3,713			2,618			4,098			4,474			48	%		23	%
Ending Balance	$	760,456		$	575,149		$	483,203		$	342,341		$	236,611			32	%		221	%
Reserve for off-balance sheet commitments		19,109			22,303			11,786			10,726			9,002			(14	)%		112	%
Total allowance for loan losses plus reserve	$	779,565		$	597,452		$	494,989		$	353,067		$	245,613			30	%		217	%
Allowance for Loan Losses
Regional Banking	$	269,397		$	240,507		$	184,472		$	139,150		$	135,736			12	%		98	%
Capital Markets		63,654			42,745			24,338			13,522			15,072			49	%		322	%
National Specialty Lending		420,220			287,212			273,127			188,550			84,787			46	%		396	%
Mortgage Banking		7,185			4,685			1,266			1,119			1,016			53	%		607	%
Total allowance for loan losses	$	760,456		$	575,149		$	483,203		$	342,341		$	236,611			32	%		221	%
Non-Performing Assets
Regional Banking
Nonperforming loans	$	133,138		$	115,264		$	81,244		$	30,608		$	37,102			16	%		259	%
Foreclosed real estate		32,078			37,594			38,019			35,026			27,214			(15	)%		18	%
Total Regional Banking		165,216			152,858			119,263			65,634			64,316			8	%		157	%
Capital Markets
Nonperforming loans		27,284			41,527			13,030			8,970			10,051			(34	)%		171	%
Foreclosed real estate		600			600			600			810			810			-			(26	)%
Total Capital Markets		27,884			42,127			13,630			9,780			10,861			(34	)%		157	%
National Specialty Lending
Nonperforming loans		718,624			582,523			433,285			243,711			142,645			23	%		404	%
Foreclosed real estate		57,251			45,384			29,680			34,120			18,030			26	%		218	%
Total National Specialty Lending		775,875			627,907			462,965			277,831			160,675			24	%		383	%
Mortgage Banking
Nonperforming loans - including held for sale (i)		20,930			30,704			9,693			23,797			18,508			(32	)%		13	%
Foreclosed real estate		25,589			22,542			15,373			15,385			13,992			14	%		83	%
Total Mortgage Banking		46,519			53,246			25,066			39,182			32,500			(13	)%		43	%
Total nonperforming assets	$	1,015,494		$	876,138		$	620,924		$	392,427		$	268,352			16	%		278	%
Net Charge-Offs
Regional Banking	$	29,310		$	33,337		$	29,942		$	12,421		$	14,748			(12	)%		99	%
Capital Markets		17,543			114			4,215			2,794			2,684		NM				554	%
National Specialty Lending		107,462			93,640			64,906			35,635			13,961			15	%		670	%
Mortgage Banking		378			581			75			(57	)		(9	)		(35	)%	NM
Total net charge-offs	$	154,693		$	127,672		$	99,138		$	50,793		$	31,384			21	%		393	%
Consolidated Key Ratios
NPL % (a)		4.12	%		3.42	%		2.41	%		1.28	%		.86	%
NPA % (b)		4.63			3.88			2.78			1.66			1.13
Net charge-offs % (c)		2.84			2.35			1.81			.93			.57
Allowance / Loans		3.52			2.59			2.20			1.55			1.08
Allowance to loans excluding insured loans		3.63			2.68			2.26			1.62			1.12
Allowance / NPL (d)		.85	x		.76	x		.92	x		1.21	x		1.25	x
Allowance / NPA (e)		.76	x		.66	x		.79	x		.93	x		.95	x
Allowance / Charge-offs (f)		1.23	x		1.13	x		1.22	x		1.68	x		1.88	x
Other
Loans past due 90 days or more (g)	$	119,588		$	157,277		$	300,185		$	251,509		$	206,660			(24)	%		(42	)%
Guaranteed portion (g)		50,419			64,696			223,572			190,899			158,780			(22	)%		(68	)%
Foreclosed real estate from GNMA loans		35,943			35,737			22,346			18,642			15,610			1	%		130	%
Period-end loans, net of unearned income (millions)	$	21,602		$	22,225		$	21,932		$	22,104		$	21,973			(3	)%		(2	)%
Insured loans (millions)		652			739			809			913			928			(12	)%		(30	)%
Total loans excluding insured loans (millions)	$	20,950		$	21,486		$	21,123		$	21,191		$	21,045			(2	)%		*
Off-balance sheet commitments (millions) (h)	$	6,746		$	6,444		$	6,826		$	6,929		$	7,106			5	%		(5	)%

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

NM - Not meaningful

* Amount is less than one percent

(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 annualized net charge-offs to average total loans

(d)  Ratio is allowance to nonperforming loans in the loan portfolio

(e)  Ratio is allowance to nonperforming assets related to the loan portfolio

(f)   Ratio is allowance to annualized net charge-offs

(g)  Includes loans held for sale.

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

(i) 3Q 2008 includes $11,829 of loans held-to-maturity.

26

ASSET QUALITY: CONSOLIDATED
Quarterly, Unaudited
																	3Q08 Change vs.
		3Q08			2Q08			1Q08			4Q07			3Q07				2Q08		3Q07
Key Portfolio Details
Commercial (C&I & Other)
Period-end loans ($ millions)	$	7,618		$	7,721		$	7,225		$	6,969		$	7,189				(1	)%	6	%
30+ Delinq. %		1.15	%		1.46	%		.93	%		.50	%		.41	%
NPL %		1.05			1.20			.64			.24			.33
Charge-offs % (qtr. annualized)		1.64			.84			.83			.20			.57
Allowance / Loans %		2.29	%		1.90	%		1.59	%
Allowance / Charge-offs		1.41	x		2.46	x		2.31	x
Income CRE (Income-producing Commercial Real Estate)
Period-end loans ($ millions)	$	2,038		$	2,039		$	1,982		$	1,948		$	1,970				*		3	%
30+ Delinq. %		3.47	%		1.43	%		.57	%		1.96	%		.86	%
NPL %		3.72			3.54			2.01			.27			.06
Charge-offs % (qtr. annualized)		.24			.63			1.94			.13			.12
Allowance / Loans %		3.73	%		2.89	%		2.47	%
Allowance / Charge-offs		15.48	x		4.82	x		1.28	x
Residential CRE (Homebuilder and Condominium Construction)
Period-end loans ($ millions)	$	1,480		$	1,739		$	1,980		$	2,093		$	2,211				(15	)%	(33	)%
30+ Delinq. %		5.73	%		6.36	%		2.73	%		3.56	%		1.25	%
NPL %		23.64			16.65			12.07			6.43			3.93
Charge-offs % (qtr. annualized)		11.95			6.23			5.93			3.82			.51
Allowance / Loans %		7.55	%		5.26	%		3.64	%
Allowance / Charge-offs		.58	x		.76	x		.58	x
Consumer Real Estate (Home Equity Installment and HELOC)
Period-end loans ($ millions)	$	7,830		$	7,909		$	7,964		$	8,182		$	7,648				(1	)%	2	%
30+ Delinq. %		1.49	%		1.27	%		1.55	%		1.43	%		1.25	%
NPL %		.07			.09			.11			.09			.09
Charge-offs % (qtr. annualized)		1.41			1.78			.93			.62			.37
Allowance / Loans %		1.58	%		1.70	%		1.19	%
Allowance / Charge-offs		1.12	x		0.95	x		1.28	x
OTC (Consumer Residential Construction Loans)
Period-end loans ($ millions)	$	1,202		$	1,522		$	1,815		$	2,008		$	2,160				(21	)%	(44	)%
30+ Delinq. %		4.92	%		2.69	%		2.67	%		2.50	%		1.91	%
NPL %		28.94			17.61			11.01			5.68			3.21
Charge-offs % (qtr. annualized)		12.29			9.90			4.63			2.18			1.16
Allowance / Loans %		20.16	%		7.75	%		6.49	%
Allowance / Charge-offs		1.46	x		0.78	x		1.33	x
Permanent Mortgage
Period-end loans ($ millions)	$	1,080		$	1,004		$	647		$	562		$	459				8	%	135	%
30+ Delinq. %		7.38	%		6.36	%		7.73	%		5.59	%		1.29	%
NPL %		2.94			3.04			-			-			-
Charge-offs % (qtr. annualized)		.22			1.15			.41			.55			.47
Allowance / Loans %		1.17	%		1.24	%		.20	%
Allowance / Charge-offs		5.48	x		1.12	x		1.75	x
Credit Card and Other Consumer
Period-end loans ($ millions)	$	354		$	291		$	319		$	342		$	336				22	%	5	%
30+ Delinq. %		2.08	%		2.11	%		2.37	%		2.17	%		2.19	%
NPL %		-			-			-			-			-
Charge-offs % (qtr. annualized)		5.30	%		3.29	%		5.14	%		2.45	%		2.05	%
Allowance / Loans %		5.52	%		5.43	%		4.58	%
Allowance / Charge-offs		1.06	x		1.45	x		.89	x

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

* Amount is less than one percent

27

Analysis of FAS 114 Loans, ORE, & NPL Rollforward
Unaudited
($ in millions)
Commercial Portfolio
Reserves		Reserves	Balances	%
	FAS 114 Impaired Loans w/ Reserves	$17.7	$40.4	43.81%
	FAS 114 Impaired Loans w/o Reserves	-	364.1	-
	All Other Loans	344.4	10,731.4	3.21%
	Total	$362.1	$11,135.9	3.25%
NRV Assessment of Commercial FAS 114 Impaired Assets with no Reserves
		#	Appraised Value	Legal Balance	Cumulative C/O	Book   Balance	Book Bal / Appraised Val
	FAS114 Relationships with No Reserves	133	$631.9	$511.8	$119.9	$391.9	62.0%
ORE Inventory Rollforward
				Q3	Q2
		Beginning ORE		$106.1	$83.7
		- Dispositions		(28.2)	(12.9)
		+ Additions		37.6	35.3
		Ending ORE		$115.5	$106.1
NPL-Rollforward (a)
			Q3	Q2
		Beginning NPLs	$ 722	501
		New	356	365
		Principal Increase	4	3
		Payments	(75)	(36)
		Charge Offs	(122)	(86)
		Transfer to OREO	(30)	(24)
		Upgrade to Accrual	(1)	(1)
		Ending NPLs	854	722
		(a) Includes commercial & One-Time Close portfolios only

28

ASSET QUALITY: REGIONAL BANKING
Quarterly, Unaudited
																	3Q08 Change vs.
		3Q08			2Q08			1Q08			4Q07			3Q07				2Q08		3Q07
Total Regional Banking
Period-end loans ($ millions)	$	11,008		$	11,037		$	10,803		$	10,631		$	11,161				*		(1	)%
30+ Delinq. %		1.45	%		1.50	%		1.23	%		1.16	%		.73	%
NPL %		1.21			1.04			.75			.29			.33
Charge-offs % (qtr. annualized)		1.07			1.23			1.16			.50			.51
Allowance / Loans %		2.45	%		2.18	%		1.71	%		1.31	%		1.22	%
Allowance / Charge-offs		2.30	x		1.80	x		1.54	x		2.80	x		2.30	x
Key Portfolio Details
Commercial (C&I & Other)
Period-end loans ($ millions)	$	6,064		$	6,107		$	6,134		$	5,940		$	6,264				(1	)%	(3	)%
30+ Delinq. %		1.37	%		1.40	%		.98	%		.50	%		.41	%
NPL %		1.09			.92			.62			.30			.28
Charge-offs % (qtr. annualized)		.96			1.03			.75			.31			.67
Allowance / Loans %		2.10	%		1.92	%		1.59	%
Allowance / Charge-offs		2.21	x		1.98	x		2.29	x
Income CRE (Income-producing Commercial Real Estate)
Period-end loans ($ millions)	$	1,504		$	1,484		$	1,365		$	1,320		$	1,350				1	%	11	%
30+ Delinq. %		1.21	%		.99	%		.52	%		2.60	%		.91	%
NPL %		1.73			1.60			1.42			.04			.08
Charge-offs % (qtr. annualized)		.07			.46			2.57			.04			.07
Allowance / Loans %		3.45	%		2.80	%		2.35	%
Allowance / Charge-offs		49.80	x		6.68	x		.93	x
Residential CRE (Homebuilder and Condominium Construction)
Period-end loans ($ millions)	$	473		$	528		$	526		$	570		$	622				(10	)%	(24	)%
30+ Delinq. %		3.94	%		5.43	%		2.61	%		2.10	%		.59	%
NPL %		8.71			6.68			4.68			2.14			2.98
Charge-offs % (qtr. annualized)		4.55			2.02			2.30			2.30			.02
Allowance / Loans %		8.52	%		5.61	%		3.92	%
Allowance / Charge-offs		1.75	x		2.93	x		1.65	x
Consumer Real Estate (Home Equity Installment and HELOC)
Period-end loans ($ millions)	$	2,606		$	2,614		$	2,486		$	2,491		$	2,616				*		*
30+ Delinq. %		1.32	%		1.22	%		1.83	%		1.70	%		1.33	%
Charge-offs % (qtr. annualized)		.81			1.50			.76			.64			.40
Allowance / Loans %		1.26	%		1.36	%		.70	%
Allowance / Charge-offs		1.57	x		.90	x		.92	x
Credit Card, Permanent Mortgage and Other Consumer
Period-end loans ($ millions)	$	361		$	304		$	293		$	310		$	309				19	%	17	%
30+ Delinq. %		1.66	%		1.71	%		1.89	%		1.77	%		1.82	%
Charge-offs % (qtr. annualized)		4.69			2.37			4.69			1.71			1.53
Allowance / Loans %		5.31	%		5.55	%		4.43	%
Allowance / Charge-offs		1.16	x		2.34	x		.95	x

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

* Amount is less than one percent

29

ASSET QUALITY: NATIONAL SPECIALTY LENDING
Quarterly, Unaudited
																	3Q08 Change vs.
		3Q08			2Q08			1Q08			4Q07			3Q07				2Q08		3Q07
Total National Specialty Lending
Period-end loans ($ millions)	$	8,058		$	8,622		$	9,114		$	9,554		$	9,079				(7	)%	(11	)%
30+ Delinq. %		7.72	%		2.67	%		1.85	%		2.02	%		1.38	%
NPL %		8.92			6.76			4.75			2.55			1.57
Charge-offs % (qtr. annualized)		5.14			4.18			2.80			1.50			.61
Allowance / Loans %		5.21	%		3.33	%		3.00	%		1.97	%		.93	%
Allowance / Charge-offs		.98	x		.77	x		1.05	x		1.32	x		1.52	x
Key Portfolio Details
Income CRE (Income-producing Commercial Real Estate)
Period-end loans ($ millions)	$	378		$	395		$	428		$	393		$	376				(4	)%	1	%
30+ Delinq. %		13.37	%		.80	%		.55	%		.76	%		1.37	%
NPL %		12.77			12.15			4.65			1.18			-
Charge-offs % (qtr. annualized)		.91			1.43			.87			-			.49
Allowance / Loans %		4.28	%		2.63	%		3.07	%
Allowance / Charge-offs		4.53	x		1.72	x		3.67	x
Residential CRE (Homebuilder and Condominium Construction)
Period-end loans ($ millions)	$	927		$	1,133		$	1,363		$	1,431		$	1,479				(18	)%	(37	)%
30+ Delinq. %		5.05	%		6.62	%		2.78	%		4.28	%		1.13	%
NPL %		32.03			22.02			15.36			7.80			4.18
Charge-offs % (qtr. annualized)		16.06			8.18			7.45			4.01			.63
Allowance / Loans %		6.79	%		4.90	%		3.53	%
Allowance / Charge-offs		.38	x		.50	x		.46	x
Consumer Real Estate (Home Equity Installment and HELOC)
Period-end loans ($ millions)	$	5,223		$	5,295		$	5,478		$	5,691		$	5,032				(1	)%	4	%
30+ Delinq. %		1.57	%		1.30	%		1.44	%		1.33	%		1.14	%
NPL %		.11			.13			.12			.09			.09
Charge-offs % (qtr. annualized)		1.70			1.91			1.02			.62			.34
Allowance / Loans %		1.74	%		1.84	%		1.43	%
Allowance / Charge-offs		1.01	x		.96	x		1.41	x
OTC (Consumer Residential Construction Loans)
Period-end loans ($ millions)	$	1,202		$	1,522		$	1,815		$	2,008		$	2,160				(21	)%	(44	)%
30+ Delinq. %		4.92	%		2.69	%		2.67	%		2.50	%		1.91	%
NPL %		28.94			17.61			11.01			5.68			3.21
Charge-offs % (qtr. annualized)		12.29			9.90			4.63			2.18			1.16
Allowance / Loans %		20.16	%		7.75	%		6.49	%
Allowance / Charge-offs		1.46	x		.78	x		1.33	x
Permanent Mortgage (a)
Period-end loans ($ millions)	$	297		$	249			n/a			n/a			n/a				19	%	NM
30+ Delinq. %		18.39	%		16.43	%		n/a			n/a			n/a
NPL %		6.71			7.14			n/a			n/a			n/a
Charge-offs % (qtr. annualized)		-			-			n/a			n/a			n/a
Allowance / Loans %		1.84	%		2.38	%		n/a
Allowance / Charge-offs		-			-			n/a
Other Consumer
Period-end loans ($ millions)	$	30		$	28		$	29		$	32		$	32				7	%	(6	)%
30+ Delinq. %		6.65	%		6.39	%		6.90	%		6.00	%		5.56	%
NPL %		-			-			-			-			-
Charge-offs % (qtr. annualized)		11.66	%		13.26			9.13			9.61			6.91
Allowance / Loans %		7.84	%		4.06	%		5.46	%
Allowance / Charge-offs		.66	x		.31	x		.60	x

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

(a) 3Q08 includes approximately $19.8 million of loans repurchased due to suspected fraud.

30

ASSET QUALITY: MORTGAGE BANKING & CAPITAL MARKETS
Quarterly, Unaudited
																	3Q08 Change vs.
		3Q08			2Q08			1Q08			4Q07			3Q07				2Q08		3Q07
Total Mortgage Banking
Period-end loans ($ millions)	$	746		$	715		$	647		$	562		$	459				4	%	63	%
30+ Delinq. %		10.07	%		2.88	%		7.73	%		5.59	%		1.29	%
Allowance / Loans %		.96	%		.66	%		.20	%		.20	%		.22	%
Total Capital Markets
Period-end loans ($ millions)	$	1,790		$	1,851		$	1,368		$	1,356		$	1,274				(3	)%	41	%
30+ Delinq. %		1.45	%		2.44	%		.82	%		.99	%		.56	%
NPL %		1.52			2.24			.95			.66			.79
Charge-offs % (qtr. annualized)		3.99			.03			1.23			.86			.85
Allowance / Loans %		3.56	%		2.31	%		1.78	%		1.00	%		1.18	%
Allowance / Charge-offs		.91	x		93.74	x		1.44	x		1.21	x		1.40	x

31

ASSET QUALITY HIGHLIGHTS: KEY PORTFOLIOS - COMMERCIAL
Unaudited
C&I Portfolio: $7.6 Billion (35% of Total Loans)
	- Impacted by deterioration in economic conditions and impacts of housing market
	- Diverse and granular portfolio
	- Mostly relationship customers in TN and regional middle market lending efforts
Homebuilder Portfolio: $1.5 Billion (7% of Total Loans)		Top 10 States
			% OS	% NPL
	- Loans to residential builders and developers	TN	21.19%	7.68%
	- Performance under pressure from housing market (oversupply & lack of mortgage availability)	FL	11.47%	44.04%
	- Most severe market conditions in Florida, California, Virginia/DC, Texas, Arizona, and Colorado	WA	10.31%	12.75%
	- Condominium construction balances small ($199 million) but individual commitments tend to be larger	CA	7.27%	24.52%
	- Managing existing relationships (shrinking business into 2008)	NC	5.80%	6.52%
	- Devoting additional resources to manage problem loans	VA	4.68%	36.20%
	- Ceased originations for national CRE business in January: wind-down portfolio	MD	4.31%	16.97%
		TX	3.98%	14.32%
		CO	3.86%	33.27%
		AZ	3.59%	35.91%
		As  of  09/30/08
Income CRE Portfolio: $2.0 Billion (9% of Total Loans)		Top 10 States
			% OS	% NPL
	- Traditional commercial real estate construction and mini-permanent loans	TN	42.02%	1.48%
	- Three-fourths managed by Regional Banking segment (approx)	NC	9.80%	-
	- One-fourth in national CRE business: wind-down portfolio (approx)	FL	8.05%	25.02%
	- Performance showing spillover impact from housing market	GA	6.19%	.44%
		WA	3.89%	1.11%
		MS	3.83%	.28%
		SC	3.33%	-
		TX	2.75%	-
		AZ	2.51%	11.82%
		CA	2.02%	18.61%
		As  of  09/30/08

32

ASSET QUALITY HIGHLIGHTS: KEY PORTFOLIOS - CONSUMER
Unaudited
Consumer Real Estate (primarily Home Equity) Portfolio: $7.8 Billion (36% of Total Loans)
- Performance continues to show stress in Q3 primarily related to areas with significant
home price depreciation.	Top 10 States
- Geographically diverse		% OS	Del. %	C/O %
- Top States (TN= 27%, CA = 14%, VA = 4%, WA = 4%, MD = 3%,  FL = 3%, GA = 3%)	TN	27%	1.41%	.64%
- Strong borrower quality	CA	14%	1.46%	2.02%
- 734 avg. portfolio origination FICO; 732 avg. portfolio FICO (refreshed)	VA	4%	1.96%	1.64%
- Good collateral position	WA	4%	.69%	.66%
- High LTV loans managed through whole loan insurance	MD	3%	1.39%	1.74%
- 27% 1st lien and 73% second lien	FL	3%	2.84%	4.91%
- 86.5% of uninsured portfolio <90 CLTV	GA	3%	2.01%	1.32%
- 14.5% of uninsured portfolio is HLTV, 64% of which (or 9.3%) have FICO >700	AZ	2%	2.72%	.85%
- No longer originating loans >89.9% CLTV	PA	2%	1.45%	1.06%
- Good borrower capacity (37% avg. DTI)	NJ	2%	1.31%	1.96%
- Primarily retail-sourced (85% retail)	As  of  09/30/08
- Mix of older vintage loans
- 53% originated prior to 2006	Retail vs. Wholesale Originations
		% OS	Del. %	C/O %
	Retail	85.03%	1.33%	1.05%
	Wholesale	12.48%	2.62%	3.70%
	Other	2.49%	1.68%	4.67%
	As  of  09/30/08
	Portfolio Breakdown by LTV and FICO
		<=80%	80% - 90%	>90%
	>=740	31.4%	13.7%	5.3%
	720-739	7.1%	4.5%	2.0%
	700-719	7.1%	4.5%	2.0%
	660-699	8.0%	4.0%	3.3%
	620-659	2.6%	1.4%	1.4%
	<620	.9%	.3%	.4%
	*excludes whole loan insurance
	As  of  09/30/08

	Balance	Origination Characteristics					QTD	YTD
Vintage	%	CLTV	FICO	% Broker *	% TN	% 1st lien	NCO's %	NCO's %
pre-2002	6%	76%	716	17%	50%	37%	2.49%	2.17%
2003	10%	73%	730	14%	38%	48%	.68%	.56%
2004	14%	79%	728	21%	26%	29%	1.37%	1.24%
2005	22%	80%	731	20%	20%	17%	1.79%	2.39%
2006	18%	77%	734	6%	26%	18%	2.35%	2.30%
2007	21%	79%	741	15%	22%	20%	.96%	.84%
2008	8%	76%	748	12%	29%	51%	.27%	.09%
Total	100%	78%	734	15%	27%	27%	1.47%	1.50%
* Correspondent and Wholesale

One-Time Close (OTC) Portfolio: $1.2 Billion (6% of Total Loans)	Top 10 States
		% OS	% NPL
- Construction-to-perm loans with short duration	CA	24%	34%
- Performance under pressure from housing market, borrower stress	TX	13%	19%
and lack of product salability in the secondary market	UT	10%	34%
- Actively identifying and remediating problem accounts	ID	7%	54%
- Devoting additional resources to manage problem loans	WA	7%	18%
- Ceased originations for national OTC lending: wind-down portfolio	FL	6%	84%
	AZ	5%	47%
	OR	4%	14%
	VA	2%	21%
	NC	2%	36%
	As  of  09/30/08

33

ASSET QUALITY: PROCESS HIGHLIGHTS

Product	Current Process
Commercial Loans (Real Estate / C&I)
	Risk Grading
	Reserves are established using historical loss factors by grade level. Relationship managers risk rate each loan using grades that reflect both the probability of default and estimated loss in the event of default.  Loans with emerging weaknesses receive increased oversight through our Watch List process.
	Portfolio Reviews are conducted regularly to provide oversight of risk grading decisions for larger credits.
	Watch List Process
	For new Watch List loans, senior credit management reviews risk grade appropriateness and action plans.  After initial identification, relationship managers prepare regular updates for review and discussion by more senior business line and credit officers.  This oversight is intended to bring consistent grading and allow timely identification of loans that need to be further downgraded or placed on non-accrual status.
	Classified & Non-Accruals
	When a loan becomes classified, the asset generally transfers to the specialists in our Loan Rehab and Recovery group where the accounts receive more detailed monitoring; at this time, new appraisals are typically ordered for real estate collateral dependent credits.
	Loans are placed on non-accrual status if it becomes evident that full collection of principal and interest is at risk or if the loans become 90 days or more past due.
	Impairment Assessment
	Generally, classified non-accrual loans over $1 million are deemed to be impaired in accordance with SFAS 114 and are assessed for impairment measurement.  For impaired assets viewed as collateral dependent, fair value estimates are obtained from a recently received and reviewed appraisal.  Appraised values are adjusted down for costs associated with asset disposal and for our estimate of any further deterioration in values since the most recent appraisal.  Upon the determination of impairment, we charge off the full difference between book value and our best estimate of the asset’s net realizable value.
One-Time Close (OTC) Loans
	For OTC real estate construction loans, reserve levels are established based on portfolio modeling and monthly portfolio reviews conducted with business line managers and credit officers.  The inherent risk in credits is examined and evaluated based on factors such as draw inactivity and borrower conditions, often recognizing problems prior to delinquency.  In addition, OTC loans that reach 90 days past due are placed on non-accrual.  A new appraisal is ordered for loans that reach 90 days past due or are classified as substandard during the monthly portfolio review.  Loans are initially written down to current appraised value.  Loans are then assessed for charge down again when they reach 180 days past due, and again when they are taken into OREO.
Home Equity Loans & Lines
	For home equity loans and lines, reserve levels are established through the use of several models that look at historical losses, cumulative vintage performance, and roll rates.  Loans are classified substandard at 90 days delinquent.  Our collateral position is assessed prior to the asset becoming 180 days delinquent.  If the value does not support foreclosure, balances are charged-off and other avenues of recovery are pursued.  If the value supports foreclosure, the loan is charged down to net realizable value and is placed on non-accrual status.  When collateral is taken to OREO, the asset is assessed for further write down to appraised value.

34

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 not carried at elected fair value.  For loans held for sale not carried at elected fair value, origination fees are recognized at the time the loan is sold, not at the time the loan is originated.

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

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

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

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

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.

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

35

1

First Horizon National Corporation

Third Quarter 2008 Earnings

October 17, 2008

2

§Portions of this presentation use non-GAAP financial information. Each of those portions

    is so noted, and a reconciliation of that non-GAAP information to comparable GAAP

    information is provided in a footnote or in the Appendix at the end of this presentation.

§This presentation contains forward-looking statements, which may include guidance,

    involving significant risks and uncertainties which will be identified by words such as

    “believe” “expect” “anticipate” “intend” “estimate” “should” “is likely” “will” “going

    forward” and other expressions that indicate future events and trends and may

    be followed by or reference cautionary statements.  A number of factors could cause

    actual results to differ materially from those in the forward-looking information.

    These factors are outlined in our recent earnings and other press releases and in more

    detail in the most current 10-Q and  10-K.  First Horizon disclaims any obligation to

    update any of the forward-looking statements that are made from time to time to

    reflect future events or developments.

3

Financial Highlights: Third Quarter 2008

1Pretax, pre-provision is a non-GAAP number and is pretax income excluding provision. Pretax loss was $203mm

  and provision was $340mm at 3Q08.
2Current Quarter is estimate.

§Earnings per share of $(0.59)

§Net loss of $(118) million

§Loan loss reserve increased to 3.52% of total loans, as provision of $340 million

      exceeded $155 million in net charge-offs

§Solid financial performance with pretax, pre-provision income1 of $137 million

§Includes ($31) million of significant items, net of gains

§Net interest margin stable at 3.01%

§Tier I capital ratio improved to 10.9%2

4

Strategic Actions Overview

Reducing Balance
Sheet

Proactive on

Asset Quality

Improving Liquidity

§Reduced assets by $2.7B in 3Q08

§Completed sale of national mortgage platform

§Reduced construction portfolios by approximately $600 million in 3Q08

§Reduced unsecured wholesale funding

§Retired $1.5 billion in maturing debt through asset reduction

§Customer funding (deposits and repos) remained stable

Strong Capital
Position

§Tier 1 ratio improved to 10.9%, TCE/TA to 7.2%1

§Continued balance sheet shrinkage should further improve ratios

§Capital position sufficient to withstand higher than expected credit losses

Strength in Core
Businesses

§Pretax, pre-provision earnings from Regional Bank/Capital Markets

       remained solid at $82mm for 3Q082

§Good customer and account growth in Tennessee

§Fixed income business remains strong

1 Current Quarter is estimate2Pretax, pre-provision is a non-GAAP number and is pretax income excluding provision.

Regional banking pretax loss was $7mm and provision was $58mm at 3Q08;

Capital markets pretax loss was $9mm and provision was $38mm.

§Increased reserves/loans to 3.52%

§OTC reserves reflect identifiable inherent loss content in portfolio

§2008 outlook for net charge-offs remains within upper end of $485-$585

       million forecast range

5

Customer Deposits Stable, Account Growth Improving

3Q08 Customer Funding1 by Day

2008 Net Primary Accounts2

Customer Deposits

Customer Repos

1Includes customer-related deposits and repurchase agreements net of float.Excludes custodial balances and wholesale deposits.

2Consumer: checking & money market savings; Business: checking, savings, repos, analyzed accounts

$12.0

$12.2

$11.8

666,260

656,156

646,090

§Deposits stable over quarter in face of industry events, rate competition

§Favorable trends in August and September resulting from proactive efforts

§Customer communication and education

§CDARS program introduction

§Money market savings promotion for relationship customers - record 5,500 new accounts

               opened in month of September

§Primary deposit accounts up 6.2% annualized in quarter

520,000

540,000

560,000

580,000

600,000

620,000

640,000

660,000

680,000

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Consumer

Business

6.0

7.0

8.0

9.0

10.0

11.0

12.0

13.0

6

§Strong capital position - among the best in the industry

§Improved liquidity

§Reducing risk & balance sheet by winding down national real estate businesses

§OTC balances down 40% YTD

§National Residential CRE balances down 35% YTD

§Remaining proactive on asset quality

§Majority of NPLs written down to net realizable values, increasing disposition opportunity

§Substantial loan loss reserve built over the last four quarters

§Refocusing on regional banking and capital markets

§First Horizon well positioned to manage through industry challenges

Summary

7

Asset Quality

8

9

Portfolio Characteristics

Geographic Distribution

<= 2004

31%

Channel Mix

Vintage Profile

1Broker includes wholesale and correspondent

First

Second

Total

Balance

$2.1B

$5.7B

$7.8B

Original FICO

731

735

734

Original CLTV

70%

81%

78%

Full Doc

76%

69%

71%

Owner Occupied

85%

98%

94%

HELOCs

$0.7B

$3.7B

$4.4B

Weighted Avg.

HELOC Utilization

47%

55%

54%

Retail

85%

Broker

1

15%

2008

 8%

Core Banking

Customers

2006

18%

2005

22%

2007

21%

WA

4%

Other

36%

TN

27%

CA

14%

VA

4%

MD

3%

FL

3%

GA

3%

AZ

2%

PA

2%

NJ 2%

Home Equity - Differentiated Portfolio Characteristics

10

Home Equity - Delinquency & Severity Trends

30-59 Day Delinquency

60-89 Day Delinquency

90+ Day Delinquency

Net-Charge Offs

0.33%

0.53%

0.68%

0.33%

0.67%

$0

$10

$20

$30

$40

$50

$60

$0

$10

$20

$30

$40

$50

$60

$0

$10

$20

$30

$40

$50

$60

1.02%

1.91%

1.70%

0.81%

1.50%

0.76%

0.64%

0.40%

0.62%

0.34%

0.0%

0.5%

1.0%

1.5%

2.0%

3Q07

4Q07

1Q08

2Q08

3Q08

Regional Banking

National Specialty

11

§Approximately $90mm of OTC loans modified into permanent loans in 3Q082

§By year-end 2008, construction balances are expected to decline to less than $1B

§Identified problem loans and built reserves for inherent losses in 3Q08

§Increased reserves to $242mm

§Reflects view of inherent loss content

One-Time Close1 - Performance Overview

1OTC loans are consumer construction to perm loans with short duration

2Loans remained in balance sheet of National Specialty Lending segment.3Annualized.

3

3Q07

4Q07

1Q08

2Q08

3Q08

Total Commitment

$3.4 B

$3.0 B

$2.6 B

$2.0 B

$1.5 B

Total Balance

$2.2 B

$2.0 B

$1.8 B

$1.5 B

$1.2 B

% Funded

65%

66%

70%

75%

80%

30+ Delinquency %

1.91%

2.50%

2.67%

2.69%

4.92%

NPL %

3.21%

5.68%

11.01%

17.61%

28.94%

Net Charge-offs %

1.16%

2.18%

4.63%

9.90%

12.29%

12

§3Q08 losses reflect ongoing weakness in housing market

§Expect residential CRE portfolio to shrink to ~$1.3 billion by year-end 2008, with

      the majority of the reduction to occur in the national portfolio

1Annualized

Total Commitment

$3.4 B

$3.2 B

$2.8 B

$2.4 B

$1.9 B

Total Balance

$2.2 B

$2.1 B

$2.0 B

$1.7 B

$1.5 B

National Balance

$1.5 B

$1.4 B

$1.4 B

$1.1 B

$0.9 B

% Funded

65%

66%

70%

70%

79%

30+ Delinquency %

1.25%

3.56%

2.73%

6.36%

5.73%

NPL %

3.93%

6.43%

12.07%

16.65%

23.64%

Net Charge-offs %

1

0.51%

3.82%

5.93%

6.23%

11.95%

Residential CRE - Performance Overview

13

C & I and Income CRE Summary

§ 3Q08 losses impacted by weakening economic
    conditions, especially in businesses correlated

    with the housing industry

§ C&I net charge-offs at $30mm

§Driven by three sizeable individual credits,

               each impacted by real estate market stress

§ Comprehensive review of correspondent banking

    portfolio ($1.2B), trust preferred loans ($0.5B)

§Relationship based approach

§Ongoing stress in financial industry likely to

               create pressure on credits

§Factored into loan grading

1 Loans of approximately $1.2B on consolidated balance sheet are held in capital markets segment

Correspondent Loan Portfolio1

Res &

Income

CRE

20%

C&I

35%

Loans to

Financial

Institutions

25%

Mortgage

Warehouse

Lending

20%

14

Problem Loans Written Down to Net Realizable Value

FAS 114 Charge-Downs1

FAS 114 Loan Reserves

632

512

392

23%

write-down

  (120)

38% below

appraised

value

1 Approximation based on appraisals

Reserves /

($ mm)

Reserves

Loans

Loans

FAS114 Impaired Loans w/o

Reserves

$0

$364

0.00%

FAS114 Impaired Loans w/

Reserves

$18

$40

43.81%

Other Commercial Loans

$344

$10,731

3.21%

Total

$362

$11,136

3.25%

$0

$100

$200

$300

$400

$500

$600

$700

Appraised

Value

Pre-Charge

Down Balance

Cumulative

Charge Down

Book Balance

(9/30/08)

§All classified non-accrual loans over $1mm are assessed for impairment in

     accordance with FAS-114

§Loans typically charged-down to net realizable value rather than holding reserves

§OTC loans 90 days past due or classified substandard initially written-down to current

      appraised value (based on new appraisals)

§Loans are then charged-down to 85% of appraised value when they reach 180 days past

               due and to 78% of value when they are taken into OREO

15

Problem Loans Inflows Stable, Resolutions Increasing

ORE Flows

NPL Flows1

Non-Performing Assets

+$255

+$139

1Includes Commercial & One Time Close Portfolios only

$0

$200

$400

$600

$800

$1,000

$1,200

3Q07

4Q07

1Q08

2Q08

3Q08

NPLs

ORE

$ Millions

2Q08

3Q08

Beginning NPLs

$501

$722

+ Additions

$365

$356

+ Principal Increase

$3

$4

-Payments

($36)

($75)

- Charge-Offs

($86)

($122)

-Transfer to OREO

($24)

($30)

-Upgrade to Accrual

($1)

($1)

$ Millions

2Q08

3Q08

Beginning ORE

$84

$106

+ Additions

$35

$37

- Dispositions

($13)

($28)

Ending ORE

$106

$115

§New inflows of NPLs/ORE stable over

      prior quarter

§NPL resolutions increased to $76 million

      in 3Q08

§Pricing supportive of carrying valuation

§Workout resources actively pursuing asset

      disposition opportunities

16

Expectations and Risks Summary

1Source: First Horizon public disclosure: Analyst Packet, 5/7/2008

2Other includes permanent mortgage, other consumer and credit card

§Prior expectations and current outlook assume continued slow economic conditions

      and continued home price declines into 2009

§Better visibility into loss content of maturing OTC portfolio

§Reserves reflect identifiable inherent loss content in portfolio

§2008 charge-off outlook towards the upper end of $485mm to $585mm forecast range

Balance

Allowance

Portfolio

at 9/30/08

($B)

at 9/30/08

($mm)

1Q08

(Actual)

2Q08

(Actual)

3Q08

(Actual)

Low End

High End

Current Outlook

(Range)

Residential CRE

$1.5

$112

$29

$30

$49

$99

$129

Moderately Above

One-Time Close

1.2

242

22

38

41

112

162

In Range

Home Equity

7.8

124

19

36

27

79

99

Moderately Above

Commercial

7.6

174

15

15

30

60

60

Moderately Above

Income CRE

2.0

76

10

3

1

20

20

In Range

Other

2

1.5

32

4

6

7

14

14

Moderately Above

Total

$21.6

$760

$99

$128

$155

$384

$484

$100mm Above

Range

Prior Expectations ($mm)

1

2008 Net Charge-Offs

($mm)

Net Charge-Offs

17

Financial Results

18

1Pretax, pre-provision is a non-GAAP number and is pretax income excluding provision

2Estimated capital ratios at 9/30/08

Numbers may not add to total due to rounding.

($ Millions)

3Q07

2Q08

3Q08

NII

238

$

239

$

223

$

Fee income

203

400

305

Revenue before sec. G/(L)

441

639

528

Securities G/(L)

-

(1)

0

Total revenue

441

638

528

Noninterest expense

(422)

(466)

(391)

Pretax pre-provision

1

20

172

137

Provision

(43)

(220)

(340)

Pretax income/(Loss)

(24)

(48)

(203)

Taxes

9

29

85

Disc. ops.

1

-

-

Net income/(loss)

(14)

$

(19)

$

(119)

$

Diluted shares

130

177

201

Diluted EPS

(0.11)

$

(0.11)

$

(0.59)

$

Consolidated Financial Results

§NIM stable linked quarter at 3.01%

§Fee income, expenses impacted by sale

     of national mortgage business

§Provision up linked quarter to $340mm

§Reflects $185mm increase in reserves

§Period-end shares increased to 201mm

§Shares have been restated for previous

               quarters to reflect stock dividend

§Capital ratios improved significantly2

§TCE/TA = 7.2%

§Tier 1 = 10.9%

19

3Q08

Pre-tax Impact

($ mm)

Restructuring, repositioning, & efficiency related initiatives

Loss from mortgage divestiture

(17.5)

Employee & other costs

(16.4)

Other

Mortgage origination income adjustment

(15.5)

Item

Repurchase of debt

18.9

Other Significant Items

20

Consolidated Net Interest Margin

1Includes divestiture balances.Mortgage I/O assets included in Trading Securities.Mortgage hedge assets included in Other

Period-End Assets

Expected Changes

($ Billions)

4Q07

2Q08

3Q08

in 4Q08

Total loans

22.1

$

22.2

$

21.6

$

$(0.6 - 1.0)

Loans HFS

1

3.7

2.6

0.7

(0.0 - 0.1)

Trading securities

1

1.8

1.6

1.6

(0.0 - 0.1)

MSR

1

1.2

1.1

0.8

(0.0 - 0.1)

Other

1

8.3

8.0

8.1

(0.4 - 0.5)

$(1.0 - 1.8)

2.87%

2.77%

2.81%

3.01%

3.01%

2.50%

2.75%

3.00%

3.25%

3Q07

4Q07

1Q08

2Q08

3Q08

Further Balance Sheet Reductions Expected

§NIM stable in 3Q08

§Short-term margin pressure may

       result from deposit competition,

       elevated LIBOR

§Long-term, NIM should expand as

       lower margin businesses reduced

21

Wholesale Funding1 Period-End Balances

($ Billions)

Source: First Horizon Internal Information

1Excluding Securities Sold Repos, Trading Liabilities and sub-debt and other collateralized borrowings of $4.0B

§Expected balance sheet reduction adequate to offset debt maturities

§Sources of excess liquidity estimated to remain ~$4B through 2009

§FHLB availability, term MMDAs, repos, unpledged securities and Fed TAF

§Credit sensitive funding replaced with secured, non-credit sensitive sources

§Participating in CDARs program

Effectively $11.2

3Q07

4Q07

2Q08

3Q08

Fed Funds Purchased (Net of Sold)

2.4

3.3

0.8

0.2

Street CDs Short-term

2.8

4.3

-

-

Street CDs Long-term

1.0

1.0

0.9

0.5

Bank Notes

3.1

2.4

3.0

2.9

X-Notes

1.3

1.3

0.9

0.1

Insured Network Deposits

0.9

-

1.2

1.5

CDARs

-

-

-

0.2

Borrowings from FRB (TAF)

-

-

2.4

2.5

Borrowings from FHLB

2.0

0.5

3.5

3.5

Other Borrowings

0.2

0.1

0.5

0.1

13.6

12.9

13.2

11.4

Wholesale Funding Sources Less Credit Sensitive

22

§Capital ratios improved in 3Q081

§Ratios expected to build further through

       end of 2008

§$1B of balance sheet shrinkage would

       improve TCE/TA ratio by 25 bps

Summary

Pro-Forma Assumptions

§Q4 pre-tax pre-provision earnings of

       $129.2mm based on median broker estimates2

§Dividend paid in stock

§Asset reduction assumed to be $1B

       (60% risk-weighting) in 4Q08

§35% tax rate

§Illustrates excess capital to regulatory

       minimums

1 3Q08 & 4Q08 are estimates.

2  Based on broker estimates available to FHN as of Oct. 10, 2008. FHN has not announced

earnings estimates and has not endorsed these or any other broker estimates. Includes Fox Pitt, Merrill Lynch, Janney

Montgomery, Sterne Agee, SunTrust, Stifel Nicholas.. 

Regulatory

3 TCE/TA of 5% is a benchmark, rather than a regulatory minimum

Excess Capital to

Tier 1 RBC

6.0%

8.2%

10.5%

10.9%

11.1%

$1,324

Total Capital

10.0%

13.0%

15.2%

15.8%

16.1%

$1,596

TCE/TA

5.0%

5.0%

7.0%

7.2%

7.3%

$734

Tangible Book Value Per Share

$14.23

$12.14

$11.60

$11.38

12/31/2008 Proforma Assuming

Capital Position Strengthened

23

1Pretax, pre-provision is a non-GAAP number and is pretax income excluding provision

2Deposits change from 2Q08-3Q08 impacted by ($220) million from float timing

Numbers may not add to total due to rounding

($ Millions)

3Q07

2Q08

3Q08

NII

137

$

120

$

122

$

Deposit fees / cash mgmt

44

45

44

Other fees

48

48

44

Fee income

92

93

88

Total revenue

229

213

210

Noninterest expense

(154)

(150)

(159)

Pretax pre-provision

1

75

63

52

Provision

(19)

(90)

(58)

Pretax income (loss)

56

$

(27)

$

(7)

$

Balance Sheet

(Period End, $ Millions)         3Q07      2Q08      3Q08

Loans

$11,161

$11,037

$11,008

Core Deposits

(2)

10,281

10,033

9,664

Total Deposits

(2)

11,598

11,035

10,621

Repos

1,209

1,064

1,168

NIM

4.85%

4.38%

4.43%

Segment Results: Regional Banking

§Continued customer growth

§Targeted marketing investments

§New branches in key TN-area metro areas

§Customer accounts up 6% year over year

§NIMincreased by 5bps in 3Q08

§Increase in funding costs

§More competitive environment with deposits

§Expenses up 6% linked quarter

§Higher expenses from marketing efforts

              and investments in new branches

§Higher foreclosure expense in regional

              bank

§Pretax pre-provision income of $52mm

§Elevated provision drove pre-tax loss of
     $(7)mm

§Commercial loan grade migration

§Reserves increased to 2.45% of loans

24

1Pretax, pre-provision is a non-GAAP number and is pretax income excluding provision

Numbers may not add to total due to rounding

($ Millions)

3Q07

2Q08

3Q08

NII

Fixed Income

46

105

80

Other fees

19

20

18

Fee income

Total revenue

79

143

118

Noninterest expense

Pretax pre-provision

1

5

43

30

Provision

Pretax income (loss)

3

$

24

$

(8)

$

2Q08

Balance Sheet

(Average, $ Millions)

Trading inventory

$1,810

3Q08

$1,631

3Q07

$1,356

Loans

1,291

1,491

1,759

Other earning assets

Total earning assets

4,633

4,778

4,391

Segment Results: Capital Markets

§Fixed income sales remained strong,

     although down from 1H08 very strong levels

§Expenses down 12% linked quarter

§Provision increased $19mm linked quarter

§Deep review of correspondent banking

                 portfolio exposures

§Impacted by single, large credit

§Avg. loans of $1.8B includes Trust Preferred

     loans moved from HFS to HTM in prior quarters

§Managing loan portfolio, emphasizing

     correspondent banking relationships

§Relationship-based approach

§P/E loans are flat linked quarter

25

1Other includes mortgage hedging assets and permanent mortgage

($ Millions)

Origination

Servicing

NII

18

$

5

$

Fees

Revenue

44

95

Expense

(76)

(13)

Provision

-

(3)

Pretax

(32)

$

79

$

Pre-Tax Income by Activity

(3Q08 Estimated)

($ Millions)

3Q07

2Q08

3Q08

NII

27

$

32

$

22

$

Net origination fees

(18)

134

20

Net servicing fees

50

42

81

Other fees

10

14

15

Fee income

42

190

116

Total revenue

69

222

138

Noninterest expense

(108)

(149)

(89)

Provision

0

(4)

(3)

Pretax income (loss)

(39)

$

69

$

46

$

Balance Sheet

(Period end, $ Millions)

Warehouse

$2,083

3Q07

$2,433

$537

2Q08

3Q08

Trading securities

539

407

279

MSR

1,431

877

772

Other

1

1,414

1,986

1,626

Segment Results: Mortgage Banking

§3Q08 originations reflect:

§ $(14)mm from adoption of accounting standards

§ $(16)mm of origination income adjustment

§ Two months of national activity (July/August)

§Origination income will be limited to small Tennessee
operation: originations ~$0.5-1.0B annually

§Favorable hedging of $50mm

§Servicing portfolio ended quarter at $65B

§Servicing income expected to decline from run-off

26

§Strong capital position - among the best in the industry

§Improved liquidity

§Reducing risk & balance sheet by winding down national real estate businesses

§OTC balances down 40% YTD

§National Residential CRE balances down 35% YTD

§Remaining proactive on asset quality

§Majority of NPLs written down to net realizable values, increasing disposition opportunity

§Substantial loan loss reserve built over the last four quarters

§Refocusing on regional banking and capital markets

§First Horizon well positioned to manage through industry challenges

Summary