8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC   20549

----------------------------------------------------------------------------------------------

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported) – January 16, 2009

FIRST HORIZON NATIONAL CORPORATION

(Exact Name of Registrant as Specified in Charter)

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

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

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

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

□ Written communications pursuant to Rule 425 under the Securities Act  (17 CFR 230.425)

□ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

□ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

□ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 7.01. REGULATION FD DISCLOSURE

Furnished as Exhibit 99.1 is a copy of First Horizon National Corporation Fourth Quarter 2008 Financial Supplement which is scheduled to be released January 16, 2009.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS

(c)  Exhibits

The following exhibit is furnished pursuant to Item 7.01, is not to be considered “filed” under the Securities Exchange Act of 1934, as amended (“Exchange Act”), and shall not be incorporated by reference into any of First Horizon National Corporation’s (“Corporation”) previous or future filings under the Securities Act of 1933, as amended, or the Exchange Act.

Exhibit # Description

99.1   First Horizon National Corporation Fourth Quarter 2008 Financial Supplement and Investor Slide Presentation.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	FIRST  HORIZON NATIONAL CORPORATION
Date: January 16, 2009	By: :     /s/ William C. Losch III Name:  William C. Losch III Title:    Executive Vice President and Chief Financial Officer

EXHIBIT INDEX

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

Exhibit # Description

99.1   First Horizon National Corporation Fourth Quarter 2008 Financial Supplement and Investor Slide Presentation.

EX-99

Exhibit 99.1

FOURTH 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
Charges for Restructuring, Repositioning, & Efficiency Initiatives				6
Consolidated Results
	Income Statement
		Summary Income Statement		7
		Income Statement		8
		Other Income and Other Expense		9
	Balance Sheet
		Period End Balance Sheet		10
		Average and Period End Loans		11
		Average Balance Sheet		12
			Average Balance Sheet: Income & Expense	13
			Average Balance Sheet: Yields & Rates	14
	Mortgage Servicing Rights			15
Business Segment Detail
		Segment Highlights		16
		Regional Banking		17
		Capital Markets		18
		National Specialty Lending		19
		Mortgage Banking		20
			Mortgage Banking: Servicing	21
		Corporate		22
Capital Highlights				23
Asset Quality
		Asset Quality: Consolidated		24
		Analysis of FAS 114 Loans, ORE, & NPL Rollforward		26
		Asset Quality: Regional Banking		27
		Asset Quality: National Specialty Lending		28
		Asset Quality: Mortgage Banking & Capital Markets		29
		Asset Quality Highlights: Key Portfolios - Commercial		30
		Asset Quality Highlights: Key Portfolios - Consumer		31
		Asset Quality Process		32
Glossary of Terms				33
Other Information
This financial supplement contains forward-looking statements involving significant risks and uncertainties.  A number of important factors could cause actual results to differ materially from those in the forward-looking information.  Those factors include general economic and financial market conditions, including expectations of and actual timing and amount of interest rate movements including the slope of the yield curve, competition, customer and investor responses to these conditions, ability to execute business plans, geopolitical developments, recent and future legislative and regulatory developments, natural disasters, and items mentioned in this financial supplement and in FHN's most recent press release, as well as critical accounting estimates and other factors described in FHN’s recent filings with the SEC.  FHN disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements included herein or therein to reflect future events or developments.

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 Tennessee 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, derivatives, and loan trading
-Correspondent banking provides credit, depository, and other banking related services to other financial institutions
National Specialty Lending
-Wind-down portfolio that includes lending activities such as consumer lending and construction lending outside Regional Banking footprint
-Construction lending includes national home builder, one-time close, and commercial real estate portfolios
	-In January 2008, FHN announced the discontinuation of national home builder and commercial real estate
	lending through its First Horizon Construction Lending offices
-Consumer lending consists mainly of national retail-originated home equity loans and lines
Mortgage Banking
-Primarily consists of first lien mortgage originations and servicing
-In a transaction that closed on August 31, 2008, First Horizon National Corp sold its mortgage servicing platform
	and origination offices outside Tennessee to MetLife Bank, N.A.
Corporate
-Includes executive management, enterprise-wide risk management, corporate finance,
corporate communications, and legal functions
-Also includes funding function for the corporation and any impact from balance sheet positioning

3

PERFORMANCE HIGHLIGHTS
Summary of Fourth Quarter 2008 Significant Items (in millions)
Segment	Item	Income Statement	Pre-Tax	Comments
National Specialty Lending	MSR Valuation Adjustment	Noninterest income: Revenue from loan sales and securitizations	$(5.1)	Reduction in valuation of MSR related to prior consumer loan sales primarily due to interest rate changes.
Mortgage Banking	Reinsurance Reserve	Noninterest expense: Other	$(16.5)	Increase in reserves for PMI reinsurance contracts due to increasing mortgage defaults.
	Servicing Sale Obligation	Noninterest income: Mortgage Banking	$(6.5)	Recognition of liability for minimum servicing fee guarantee on prior servicing sales.
Corporate	Reduction of Visa Contingent Liability	Noninterest expense: Other	$11.0	Reversal of proportionate share of escrow funding by Visa for certain Visa litigation matters for which FHN has a contingent guarantee.
	Venture Capital Investment Dividends	Net interest income	$3.6	Dividends received as part of wind down of venture capital investments.
	Sales of Venture Capital Investments	Securities Gains/(Losses)	$1.3	Gains from marks to sales price for venture capital investments.
	Restructuring, Repositioning & Efficiency Initiatives	Noninterest expense: Various	$(10.2)	Expenses from contract terminations, severance, and office closures. Detailed further on page 6.
	Restructuring, Repositioning & Efficiency Initiatives	Noninterest income: Various	$(.1)	True up from Mortgage divestiture & repurchase reserves from First Horizon Bank branch sales.  Detailed further on page 6.

(Fourth Quarter 2008 vs. Third Quarter 2008)
Asset Quality
- Provision decreased to $280.0 million in the fourth quarter compared to $340.0 million in third quarter 2008
	- Portfolio deterioration in fourth quarter due to declining economic conditions
	- Continuing commercial portfolio deterioration
		- Residential CRE seeing downward trend in provisioning as credits are further along in credit cycle
		- Income CRE and C&I experiencing negative grade migration
			- Improved delinquency trends
	- Consumer portfolios experiencing continued stress
		- Home equity delinquencies increased
		- OTC provisioning limited due to third quarter efforts to identify inherent losses
		- Permanent mortgage portfolio experiencing increased loss severities
- Net charge-offs were 361 annualized basis points of average loans driven by residential CRE, C&I, home equity and OTC portfolios
	- Net charge-offs of $191.2 million in fourth quarter compared to $154.7 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 538 basis points from 463 basis points reflecting portfolio deterioration from current economic conditions
	- Total NPAs increased to $1.2 billion from $1.0 billion primarily from deterioration in national construction portfolios
- Allowance as a percentage of loans ratio increased to 399 basis points from 352 basis points in prior quarter
Capital
- Continued quarterly dividend payable in common stock
- Received $866.5 million of funds from Capital Purchase Program
	- Considered part of Tier I Capital
- Current ratios also continue to benefit from balance sheet contraction (estimated based on period end balances)
	- 7.3% for tangible common equity to tangible assets
	- 14.9% for Tier I
	- 20.1% for Total Capital

4

PERFORMANCE HIGHLIGHTS (continued)
(Fourth Quarter 2008 vs. Third Quarter 2008)
Regional Banking
- Net interest margin decreased to 4.22% compared to 4.43% in third quarter
	- Reflects competition for deposit accounts and increase in nonaccrual loans
- Noninterest income declined to $82.6 million from $87.9 million
	- Reduced deposit and wealth management fees in fourth quarter due to weak economic conditions
- Provision expense in third and fourth quarters primarily reflects deterioration in commercial loans
- Noninterest expense increased to $167.8 million compared to $158.6 million in prior quarter
	- Primarily from higher personnel, infrastructure and credit-related costs
Capital Markets
- Fixed income revenues were $156.5 million in fourth quarter compared to $80.1 million in prior quarter
	- Increase due to Federal Reserve rate reductions in fourth quarter creating a steeper yield curve
	- Also benefited from market volatility
- Other product revenues were $20.8 million in fourth quarter compared to $18.4 million in third quarter
- Provision expense decreased to $8.1 million from $38.5 million
	- Current stress in financial system continuing to impact correspondent banking loans
- Increase in noninterest expense resulted from higher production levels
National Specialty Lending
- Sequential decline in net interest income as loan portfolios continue to wind down
- Net interest margin decreased to 1.85% compared to 2.14% in third quarter
	- Primarily results from an increase in nonaccrual loans
- Provision for loan losses continues to reflect deterioration within national construction and consumer lending portfolios
- Noninterest income decreased sequentially
	- $5.1 million reduction in value of MSR primarily due to interest rate changes
	- Charge of $2.3 million recognized in fourth quarter for repurchase reserves
		- $1.7 million charge recognized in third quarter
- Noninterest expense decreased primarily due to the effects of winding down operations
Mortgage Banking
- Decreased origination income due to completion of MetLife transaction in August
	- Net effect of adopting new accounting standards negatively affected pre-tax earnings by negligible amount
		- $14.4 million negative effect on third quarter 2008
	- Third quarter adjustment of $15.5 million to reflect revised cash flow expectations related to mortgage origination activities
- Hedging results positively impacted earnings by $64.6 million vs. $50.8 million in third quarter
	- Falling rates and a steeper yield curve combined with positive convexity in the portfolio to benefit the hedge position
- Servicing runoff decreased to $9.9 million for fourth quarter from $20.1 million in prior quarter
	- Consistent with decline in servicing portfolio
- Other income declined due to completion of MetLife transaction
	- $6.5 million charge recognized in fourth quarter related to servicing fee guarantees on prior servicing sales
- Net interest income declines consistent with decrease in warehouse
- Provision of $22.0 million in fourth quarter due to deterioration in permanent mortgage portfolio
	- $2.9 million of provision in prior quarter
- Noninterest expense declined to $39.5 million in fourth quarter compared to $89.0 million in prior quarter
	- Due to sale of national mortgage offices and servicing platform at the end of August
	- Fourth quarter includes $16.5 million of expense for PMI reinsurance liability due to increased mortgage defaults
	- Provision for foreclosure losses of $1.8 million in fourth quarter
		- $3.4 million in third quarter
Taxes
- Approximate $8 million positive quarterly effect from permanent tax credits
Corporate Segment
- Net charges of $10.3 million recognized for restructuring, repositioning and efficiency initiatives (detail on next page)
	- Fourth quarter included $10.2 million of expenses
		- Primarily for contract terminations, severance and office closures
	- $0.1 million of net charges related to Mortgage and First Horizon Bank branch sales presented in (Losses)/Gains on Divestitures
	- Prior quarter included $33.9 million of net charges for these initiatives
- $11.0 million of expense reductions recognized in fourth quarter related to contingent liability for Visa litigation matters
	- Represents FHN's proportionate share of Visa's escrow funding in fourth quarter
	- $11.0 million of expense recognized in third quarter to increase contingent liability
- $3.6 million of dividends received from venture capital investments included in interest income
- $1.3 million of securities gains from marks to sales price for venture capital investments
- Fourth quarter includes $2.3 million of gains on repurchase of $35.0 million of debt
	- Prior quarter included $18.9 million of gains on repurchase of $91.7 million of debt

5

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

6

CONSOLIDATED SUMMARY RESULTS
Quarterly, Unaudited
																4Q08 Change vs.
(Thousands)		4Q08			3Q08			2Q08			1Q08			4Q07			3Q08			4Q07
Income Statement Highlights
Net interest income	$	204,948		$	223,147		$	238,895		$	228,092		$	225,987			(8	)%		(9	)%
Noninterest income		336,672			305,383			400,018			383,130			103,429			10	%		226	%
Securities gains/(losses), net		1,346			(210	)		(972	)		65,946			(10,442	)	NM			NM
Total revenue		542,966			528,320			637,941			677,168			318,974			3	%		70	%
Noninterest expense		349,658			402,274			465,843			438,277			561,559			(13	)%		(38	)%
Provision		280,000			340,000			220,000			240,000			156,519			(18	)%		79	%
Pre-tax income/(loss)		(86,692	)		(213,954	)		(47,902	)		(1,109	)		(399,104	)		59	%		78	%
Benefit for income taxes		(30,988	)		(88,859	)		(28,821	)		(8,146	)		(146,342	)		65	%		79	%
Income/(loss) from continuing operations		(55,704	)		(125,095	)		(19,081	)		7,037			(252,762	)		55	%		78	%
Income from discontinued operations,   net of tax		-			-			-			883			4,137			-			(100	)%
Net income/(loss)	$	(55,704	)	$	(125,095	)	$	(19,081	)	$	7,920		$	(248,625	)		55	%		78	%
Preferred stock dividends		-			-			-			-			-			-			-
Income/(loss) available to common shareholders	$	(55,704	)	$	(125,095	)	$	(19,081	)	$	7,920		$	(248,625	)		55	%		78	%
Common Stock Data
Diluted EPS from continuing operations (a)	$	(.27	)	$	(.61	)	$	(.11	)	$	.05		$	(1.91	)		56	%		86	%
Diluted EPS (a)		(.27	)		(.61	)		(.11	)		.06			(1.88	)		56	%		86	%
Diluted shares (a)		204,882			204,880			180,186			132,938			132,336			*			55	%
Period-end shares outstanding (a)		205,819			205,837			205,994			133,639			133,218			*			54	%
Dividends declared per share (b)	NM (c)			NM (d)			$	.19	(e)	$	.19	(e)	$	.43	(e)	NM			NM
Balance Sheet Highlights (Period End)
Total loans, net of unearned income	$	21,278,190		$	21,601,898		$	22,225,232		$	21,932,020		$	22,103,516			(1	)%		(4	)%
Total loans held for sale-divestiture		-			-			-			207,672			289,878			-			(100	)%
Total deposits		14,241,814			13,778,235			15,093,947			16,188,542			17,032,285			3	%		(16	)%
Total deposits-divestiture		-			-			296,632			118,720			230,418			-			(100	)%
Total assets		31,021,980			32,804,376			35,549,961			37,267,945			37,015,461			(5	)%		(16	)%
Total assets-divestiture		-			-			395,628			216,431			305,734			-			(100	)%
Total liabilities		27,447,348			29,931,458			32,557,238			34,860,441			34,584,588			(8	)%		(21	)%
Total liabilities-divestiture		-			-			298,098			120,590			232,343			-			(100	)%
Total shareholders' equity		3,279,467			2,577,641			2,697,446			2,112,227			2,135,596			27	%		54	%
Key Ratios & Other
Return on average assets		(.71	)%		(1.49	)%		(.21	)%		.09	%		(2.65	)%
Return on average equity (f)		(7.14	)%		(18.30	)%		(3.02	)%		1.47	%		(42.52	)%
Net interest margin		2.96	%		3.01	%		3.01	%		2.81	%		2.77	%
Efficiency ratio		64.4	%		76.1	%		73.0	%		64.7	%		176.1	%
Book value per common share	$	12.13		$	12.52		$	13.09		$	15.81		$	16.03
Tangible book value per common share	$	10.98		$	11.36		$	11.92		$	13.98		$	14.16
FTE employees		6,095			6,195			9,386			9,711			10,174			(2	)%		(40	)%

NM - Not meaningful
* Amount is less than one percent.
Certain previously reported amounts have been reclassified to agree with current presentation.
(a)	Shares restated for October 1, 2008 and January 1, 2009 stock dividends.
(b)	Third and fourth quarter 2008 dividend declared paid in shares.
(c)	Stock dividend rate of 1.837% per share.
(d)	Stock dividend rate of 3.0615% per share.
(e)	Cash dividends per share restated for October 1, 2008, and January 1, 2009, stock dividends.
(f)	Ratio includes preferred stock related to the CPP.

7

CONSOLIDATED INCOME STATEMENT
Quarterly, Unaudited
																	4Q08 Change vs.
(Thousands)		4Q08			3Q08			2Q08			1Q08			4Q07				3Q08			4Q07
Interest income	$	331,554		$	383,243		$	415,485		$	476,443		$	545,136				(13	)%		(39	)%
Less interest expense		126,606			160,096			176,590			248,351			319,149				(21	)%		(60	)%
Net interest income		204,948			223,147			238,895			228,092			225,987				(8	)%		(9	)%
Provision for loan losses		280,000			340,000			220,000			240,000			156,519				(18	)%		79	%
Net interest income/(loss) after
provision for loan losses		(75,052	)		(116,853	)		18,895			(11,908	)		69,468				36	%		(208	)%
Noninterest income:
Capital markets		174,671			95,954			122,338			131,457			98,482				82	%		77	%
Deposit transactions
and cash management		43,882			45,802			46,797			42,553			47,971				(4	)%		(9	)%
Mortgage banking  (a) (b) (c)		80,087			106,817			172,418			158,712			(113,965	)			(25	)%		170	%
Trust services and investment
management		7,675			8,154			8,883			9,109			10,097				(6	)%		(24	)%
Insurance commissions		6,806			7,332			6,822			8,144			7,529				(7	)%		(10	)%
Revenue from loan sales and securitizations (d)		(782	)		3,238			(6,984	)		(4,097	)		(171	)			(124	)%		(357	)%
Securities gains/(losses), net		1,346			(210	)		(972	)		65,946			(10,442	)		NM			NM
Gains/(losses) on divestitures (e)		(106	)		(17,489	)		(429	)		(995	)		15,695				99	%		(101	)%
Other		24,439			55,575			50,173			38,247			37,791				(56	)%		(35	)%
Total noninterest income		338,018			305,173			399,046			449,076			92,987				11	%		264	%
Adjusted gross income after
provision for loan losses		262,966			188,320			417,941			437,168			162,455				40	%		62	%
Noninterest expense:
Employee compensation,
incentives and benefits (c) (e)		180,871			215,498			277,078			287,470			226,905				(16	)%		(20	)%
Occupancy (e)		19,149			27,210			30,018			28,591			34,209				(30	)%		(44	)%
Operations services		19,345			20,041			19,124			18,964			20,148				(3	)%		(4	)%
Equipment rentals, depreciation
and maintenance		11,454			12,336			18,268			15,011			16,252				(7	)%		(30	)%
Legal and professional fees		17,711			16,955			14,030			15,022			17,629				4	%		*
Communications and courier		7,754			9,628			11,477			11,004			10,664				(19	)%		(27	)%
Amortization of intangible assets		1,805			1,802			2,182			2,440			2,864				*			(37	)%
Goodwill impairment		-			-			-			-			71,074			NM			NM
Other (c) (e) (f) (g)		91,569			98,804			93,666			59,775			161,814				(7	)%		(43	)%
Total noninterest expense		349,658			402,274			465,843			438,277			561,559				(13	)%		(38	)%
Pretax (loss)		(86,692	)		(213,954	)		(47,902	)		(1,109	)		(399,104	)			59	%		78	%
Benefit for income taxes		(30,988	)		(88,859	)		(28,821	)		(8,146	)		(146,342	)			65	%		79	%
Income/(loss) from continuing operations	$	(55,704	)	$	(125,095	)	$	(19,081	)	$	7,037		$	(252,762	)			55	%		78	%
Income from discontinued operations,
net of tax		-			-			-			883			4,137			NM			NM
Net income/(loss)	$	(55,704	)	$	(125,095	)	$	(19,081	)	$	7,920		$	(248,625	)			55	%		78	%
Preferred stock dividends		-			-			-			-			-			NM			NM
Income/(loss) available to common shareholders	$	(55,704	)	$	(125,095	)	$	(19,081	)	$	7,920		$	(248,625	)			55	%		78	%

NM - Not meaningful
* Amount is less than one percent.
Certain previously reported amounts have been reclassified to agree with current presentation.
4Q08 Key Impacts
(a)	Includes recognition of liability for minimum servicing fee guarantee related to prior servicing sales.
(b)	Includes effects of electing fair value for mortgage warehouse loans.
(c)	Includes effect of adopting new accounting standards.
(d)	Includes MSR valuation adjustment related to prior consumer loan sales.
(e)	Includes a portion of net charges for $10.3 million, see Restructuring, Repositioning & Efficiency Initiatives page for further details.
(f)	Includes increase in reinsurance reserves for PMI reinsurance contracts.
(g)	Includes reversal of expense related to Visa litigation matters for which FHN is contingently liable.

8

OTHER INCOME AND OTHER EXPENSE
Quarterly, Unaudited
															4Q08 Change vs.
(Thousands)		4Q08			3Q08			2Q08		1Q08			4Q07			3Q08			4Q07
Other Income
Brokerage management fees and
commissions	$	7,307		$	7,824		$	8,690	$	8,413		$	8,747			(7	)%		(16	)%
Bank owned life insurance		5,107			6,731			6,343		6,962			6,697			(24	)%		(24	)%
Bankcard income		5,226			5,587			5,728		5,540			6,221			(6	)%		(16	)%
Other service charges		3,002			3,043			3,189		3,396			3,357			(1	)%		(11	)%
Remittance processing		3,160			3,314			3,206		3,273			3,450			(5	)%		(8	)%
Reinsurance fees		2,624			2,830			3,320		3,145			2,794			(7	)%		(6	)%
ATM interchange fees		2,485			2,263			2,238		2,238			2,224			10	%		12	%
Deferred compensation		(12,531	)		(5,145	)		1,325		(6,550	)		(1,667	)		144	%		652	%
Letter of credit		1,322			1,603			1,274		1,458			1,759			(18	)%		(25	)%
Electronic banking fees		1,492			1,535			1,572		1,618			1,636			(3	)%		(9	)%
Check clearing fees		538			838			887		862			1,125			(36	)%		(52	)%
Federal flood certifications		-			863			1,259		1,523			1,084			(100	)%		(100	)%
Other		4,707			24,289			11,142		6,369			364			(81	)%	NM
Total	$	24,439		$	55,575		$	50,173	$	38,247		$	37,791			(56	)%		(35	)%
Other Expense
Computer software (a)		7,151			7,162			8,120		7,956			26,185			*			(73	)%
Advertising and public relations (a)		7,366			9,142			7,179		9,327			10,297			(19	)%		(28	)%
Travel and entertainment (a)		3,314			3,358			5,672		5,027			5,829			(1	)%		(43	)%
Low income housing expense		4,289			5,064			4,815		4,566			6,605			(15	)%		(35	)%
Contract employment (a)		11,569			9,033			7,359		5,584			5,202		NM			NM
Distributions on preferred stock
of subsidiary		4,209			2,875			2,844		4,061			4,679			46	%		(10	)%
Foreclosed real estate		10,941			4,979			10,720		6,362			8,871			120	%		23	%
Supplies (a)		2,053			2,725			2,942		3,020			3,496			(25	)%		(41	)%
Loan closing costs		3,129			10,314			11,718		13,060			1,279			(70	)%		145	%
Customer relations		1,897			2,727			2,544		1,707			2,834			(30	)%		(33	)%
Other insurance and taxes		2,305			749			2,036		1,758			2,684			208	%		(14	)%
Employee training and dues		1,771			1,485			1,632		1,398			1,183			19	%		50	%
Fed services fees		1,526			1,975			1,941		1,611			1,463			(23	)%		4	%
Complimentary check expense		1,065			1,259			1,154		1,298			1,206			(15	)%		(12	)%
Loan insurance expense		1,482			1,477			1,198		1,113			1,073			*			38	%
Bank examination costs		514			1,523			1,054		1,053			1,142			(66	)%		(55	)%
Deposit insurance premium		4,288			4,146			3,403		2,827			1,223			3	%		251	%
Other (a) (b) (c)		22,700			28,811			17,335		(11,953	)		76,563			(21	)%		(70	)%
Total	$	91,569		$	98,804		$	93,666	$	59,775		$	161,814			(7	)%		(43	)%

NM - Not meaningful
* Amount is less than one percent.
Certain previously reported amounts have been reclassified to agree with current presentation.
4Q08 Key Impacts
(a)	Includes a portion of net charges for $9.8 million, see Restructuring, Repositioning & Efficiency Initiatives page for further details.
(b)	Includes increase in reinsurance reserves for PMI reinsurance contracts.
(c)	Includes reversal of expense related to Visa litigation matters for which FHN is contingently liable.

9

CONSOLIDATED PERIOD-END BALANCE SHEET
Quarterly, Unaudited
																	4Q08 Change vs.
(Thousands)		4Q08			3Q08			2Q08			1Q08				4Q07			3Q08			4Q07
Assets
Investment securities	$	3,125,153		$	2,840,739		$	2,896,928		$	3,034,798			$	3,032,791			10	%		3	%
Loans held for sale		566,654			718,029			2,554,030			3,616,018				3,461,712			(21	)%		(84	)%
Loans held for sale-divestiture (a)		-			-			-			207,672				289,878		NM			NM
Loans, net of unearned income		21,278,190			21,601,898			22,225,232			21,932,020				22,103,516			(1	)%		(4	)%
Federal funds sold and securities
purchased under agreements to resell		772,357			921,295			1,166,982			898,615				1,089,495			(16	)%		(29	)%
Interest bearing cash		207,792			37,546			39,829			46,382				39,422			453	%		427	%
Trading securities		945,766			1,561,024			1,473,815			1,553,053				1,768,763			(39	)%		(47	)%
Trading securities-divestiture (a)		-			-			89,239			-				-		NM			NM
Total earning assets		26,895,912			27,680,531			30,446,055			31,288,558				31,785,577			(3	)%		(15	)%
Cash and due from banks		552,423			815,935			838,376			851,875				1,170,220			(32	)%		(53	)%
Capital markets receivables		1,178,932			1,651,547			994,571			1,680,057				524,419			(29	)%		125	%
Mortgage servicing rights, net		376,844			798,491			903,634			895,923				1,159,820			(53	)%		(68	)%
Mortgage servicing rights, net-divestiture (a)		-			-			235,761			-				-		NM			NM
Goodwill		192,408			192,408			192,408			192,408				192,408		NM			NM
Other intangible assets, net		45,081			46,887			48,615			52,017				56,907			(4	)%		(21	)%
Premises and equipment, net		333,931			336,078			344,410			382,488				399,305			*			(16	)%
Real estate acquired by foreclosure (b)		125,538			151,461			141,857			106,018				103,982			(17	)%		21	%
Allowance for loan losses		(849,210	)		(760,456	)		(575,149	)		(483,203	)			(342,341	)		12	%		148	%
Other assets		2,170,121			1,891,494			1,908,795			2,293,045				1,949,308			15	%		11	%
Other assets-divestiture (a)		-			-			70,628			8,759				15,856		NM			NM
Total assets	$	31,021,980		$	32,804,376		$	35,549,961		$	37,267,945			$	37,015,461			(5	)%		(16	)%
Liabilities and Shareholders' Equity
Deposits
Savings	$	4,824,939		$	4,350,832		$	4,041,352		$	4,217,215			$	3,872,684			11	%		25	%
Other interest-bearing deposits		1,783,362			1,638,731			1,880,678			1,986,556				1,946,933			9	%		(8	)%
Time deposits		2,294,644			2,510,344			2,468,521			2,648,339				2,826,301			(9	)%		(19	)%
Interest bearing deposits-divestiture (a)		-			-			-			99,370				189,051		NM			NM
Total interest-bearing core deposits		8,902,945			8,499,907			8,390,551			8,951,480				8,834,969			5	%		*
Noninterest-bearing deposits		3,956,633			3,808,239			4,453,332			4,995,696				5,026,417			4	%		(21	)%
Noninterest-bearing deposits-divestiture (a)		-			-			296,632			18,197				28,750		NM			NM
Total core deposits		12,859,578			12,308,146			13,140,515			13,965,373				13,890,136			4	%		(7	)%
Certificates of deposit $100,000 and more		1,382,236			1,470,089			1,953,432			2,222,016				3,129,532			(6	)%		(56	)%
Certificates of deposit $100,000 and more-divestiture (a)		-			-			-			1,153				12,617		NM			NM
Total deposits		14,241,814			13,778,235			15,093,947			16,188,542				17,032,285			3	%		(16	)%
Federal funds purchased and securities
sold under agreements to repurchase		1,751,079			1,890,681			2,620,014			3,678,217				4,829,597			(7	)%		(64	)%
Federal funds purchased and securities
sold under agreements to repurchase-divestiture (a)		-			-			-			11,572				20,999		NM			NM
Trading liabilities		359,502			380,896			464,225			531,259				556,144			(6	)%		(35	)%
Other short term borrowings and commercial paper (c)		4,279,689			6,149,073			5,998,810			4,753,582				3,422,995			(30	)%		25	%
Term borrowings		4,022,297			4,545,791			5,783,407			6,060,795				6,027,967			(12	)%		(33	)%
Other collateralized borrowings		745,363			749,797			767,010			809,273				800,450			*			(7	)%
Total long-term debt		4,767,660			5,295,588			6,550,417			6,870,068				6,828,417			(10	)%		(30	)%
Capital markets payables		1,115,428			1,645,118			868,883			1,688,870				586,358			(32	)%		90	%
Other liabilities		932,176			785,061			959,476			1,136,461				1,305,868			19	%		(29	)%
Other liabilities-divestiture (a)		-			-			1,466			1,870				1,925		NM			NM
Total liabilities		27,447,348			29,924,652			32,557,238			34,860,441				34,584,588			(8	)%		(21	)%
Preferred stock of subsidiary		295,165			295,277			295,277			295,277				295,277			*			*
Shareholders' Equity
Preferred stock capital surplus - (CPP)		782,680			-			-			-				-		NM			NM
Common stock		128,302			125,996			122,345			79,242				78,979			2	%		62	%
Capital surplus		1,048,602			1,016,498			980,428			362,823				361,826			3	%		190	%
Capital surplus common stock warrants - (CPP)		83,860			-			-			-				-		NM			NM
Undivided profits		1,387,854			1,489,990			1,646,272			1,704,559				1,742,892			(7	)%		(20	)%
Accumulated other comprehensive loss, net		(151,831	)		(48,037	)		(51,599	)		(34,397	)			(48,101	)		(216	)%		(216	)%
Total shareholders' equity		3,279,467			2,584,447			2,697,446			2,112,227				2,135,596			27	%		54	%
Total liabilities and shareholders' equity	$	31,021,980		$	32,804,376		$	35,549,961		$	37,267,945			$	37,015,461			(5	)%		(16	)%

NM - Not meaningful
* Amount is less than one percent.
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)	Fourth quarter 2008 includes $21.2 million of foreclosed assets related to government insured mortgages.
(c)	Fourth quarter 2008 includes $4.0 billion of FRB Term Auction Facility borrowings.

10

CONSOLIDATED AVERAGE AND PERIOD-END LOANS
Quarterly, Unaudited
											4Q08 Change vs.
(Thousands)		4Q08		3Q08		2Q08		1Q08		4Q07		3Q08		4Q07
Average Loans (Net)
Commercial
Commercial, financial and industrial	$	7,516,557	$	7,530,724	$	7,212,907	$	7,121,890	$	6,957,498		*		8	%
Real estate commercial (a)		1,479,582		1,497,773		1,401,267		1,347,377		1,301,866		(1	)%	14	%
Real estate construction (b)		1,917,647		2,162,817		2,481,680		2,713,253		2,825,210		(11	)%	(32	)%
Total commercial loans		10,913,786		11,191,314		11,095,854		11,182,520		11,084,574		(2	)%	(2	)%
Retail
Real estate residential (c)		8,172,174		8,166,295		7,878,845		7,774,415		7,605,345		*		7	%
Real estate construction (d)		1,087,752		1,350,092		1,666,007		1,909,061		2,096,561		(19	)%	(48	)%
Other retail		137,185		138,848		138,242		141,961		144,116		(1	)%	(5	)%
Credit card receivables		190,189		193,517		193,850		195,081		201,153		(2	)%	(5	)%
Real estate loans pledged against
other collateralized borrowings (e)		716,925		721,760		735,828		755,071		779,013		(1	)%	(8	)%
Total retail loans		10,304,225		10,570,512		10,612,772		10,775,589		10,826,188		(3	)%	(5	)%
Total loans, net of unearned income	$	21,218,011	$	21,761,826	$	21,708,626	$	21,958,109	$	21,910,762		(2	)%	(3	)%
Period-End Loans (Net)
Commercial
Commercial, financial and industrial	$	7,863,727	$	7,642,684	$	7,717,110	$	7,238,630	$	7,140,087		3	%	10	%
Real estate commercial (a)		1,454,040		1,492,323		1,463,726		1,345,526		1,294,922		(3	)%	12	%
Real estate construction (b)		1,778,140		2,020,455		2,271,533		2,602,968		2,753,475		(12	)%	(35	)%
Total commercial loans		11,095,907		11,155,462		11,452,369		11,187,124		11,188,484		(1	)%	(1	)%
Retail
Real estate residential (c)		8,161,435		8,192,926		8,196,622		7,858,109		7,791,885		*		5	%
Real estate construction (d)		980,798		1,201,911		1,513,845		1,814,863		2,008,289		(18	)%	(51	)%
Other retail		135,779		139,441		138,970		138,253		144,019		(3	)%	(6	)%
Credit card receivables		189,554		194,966		195,703		191,119		204,812		(3	)%	(7	)%
Real estate loans pledged against
other collateralized borrowings (e)		714,717		717,192		727,723		742,552		766,027		*		(7	)%
Total retail loans		10,182,283		10,446,436		10,772,863		10,744,896		10,915,032		(3	)%	(7	)%
Total loans, net of unearned income	$	21,278,190	$	21,601,898	$	22,225,232	$	21,932,020	$	22,103,516		(1	)%	(4	)%

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

11

CONSOLIDATED AVERAGE BALANCE SHEET
Quarterly, Unaudited
																4Q08 Change vs.
(Thousands)		4Q08			3Q08			2Q08			1Q08			4Q07			3Q08			4Q07
Assets:
Earning assets:
Loans, net of unearned income (a)	$	21,218,011		$	21,761,826		$	21,708,626		$	21,958,109		$	21,910,762			(2	)%		(3	)%
Loans held for sale		650,844			1,950,831			3,606,621			3,728,008			3,337,237			(67	)%		(80	)%
Loans held for sale-divestiture (b)		-			-			195,175			248,751			467,424		NM			NM
Investment securities:
U.S. Treasuries		48,415			47,843			47,123			43,305			36,062			1	%		34	%
U.S. government agencies		2,576,587			2,524,895			2,649,651			2,725,948			2,787,078			2	%		(8	)%
States and municipalities		75,084			31,682			31,347			12,847			1,740			137	%	NM
Other		282,639			268,939			257,907			232,472			230,808			5	%		22	%
Total investment securities		2,982,725			2,873,359			2,986,028			3,014,572			3,055,688			4	%		(2	)%
Capital markets securities inventory		1,135,270			1,355,501			1,630,501			1,961,964			1,934,055			(16	)%		(41	)%
Mortgage banking trading securities		242,930			304,278			387,469			405,579			527,453			(20	)%		(54	)%
Mortgage banking trading securities-divestiture (b)		-			62,131			981			-			-		NM			NM
Other earning assets:
Federal funds sold and securities
purchased under agreements to resell		911,387			1,213,510			1,275,548			1,304,707			1,237,957			(25	)%		(26	)%
Interest bearing cash		546,732			39,666			36,573			46,093			28,968		NM			NM
Total other earning assets		1,458,119			1,253,176			1,312,121			1,350,800			1,266,925			16	%		15	%
Total earning assets		27,687,899			29,561,102			31,827,522			32,667,783			32,499,544			(6	)%		(15	)%
Allowance for loan losses		(741,076	)		(619,977	)		(529,124	)		(359,600	)		(246,916	)		20	%		200	%
Cash and due from banks		495,500			638,467			697,013			786,693			846,793			(22	)%		(41	)%
Capital markets receivables		432,614			196,285			251,667			297,908			182,358			120	%		137	%
Premises and equipment, net		334,642			339,575			373,403			390,291			407,212			(1	)%		(18	)%
Other assets		2,839,665			3,219,952			3,517,017			3,367,729			3,540,575			(12	)%		(20	)%
Other assets-divestiture (b)		-			46,091			8,603			11,581			20,868		NM			NM
Total assets	$	31,049,244		$	33,381,495		$	36,146,101		$	37,162,385		$	37,250,434			(7	)%		(17	)%
Liabilities and shareholders' equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Interest bearing deposits-divestiture (b)	$	-		$	-		$	30,695		$	127,352		$	292,615		NM			NM
Other interest-bearing deposits		1,615,764			1,724,504			1,911,341			1,922,506			1,685,749			(6	)%		(4	)%
Savings		4,741,073			4,002,907			4,180,739			4,134,308			3,749,222			18	%		26	%
Time deposits		2,461,921			2,422,189			2,530,300			2,763,335			2,850,719			2	%		(14	)%
Total interest-bearing core deposits		8,818,758			8,149,600			8,653,075			8,947,501			8,578,305			8	%		3	%
Certificates of deposit $100,000 and more		1,491,297			1,839,651			2,022,972			2,696,781			4,464,070			(19	)%		(67	)%
Certificates of deposit $100,000 and more-divestiture (b)		-			-			279			4,770			30,499		NM			NM
Federal funds purchased and securities
sold under agreements to repurchase		2,021,033			2,593,485			3,810,955			5,236,736			4,936,968			(22	)%		(59	)%
Federal funds purchased and securities
sold under agreements to repurchase-divestiture (b)		-			-			3,102			16,171			33,370		NM			NM
Capital markets trading liabilities		488,102			708,875			768,565			846,369			812,969			(31	)%		(40	)%
Other short-term borrowings and commercial paper (c)		5,096,108			6,083,691			5,513,454			3,850,704			2,651,882			(16	)%		92	%
Long term debt:
Term borrowings		4,266,510			5,193,319			5,886,694			6,013,433			5,981,215			(18	)%		(29	)%
Other collateralized borrowings		747,824			756,999			792,388			790,811			813,075			(1	)%		(8	)%
Total long-term debt		5,014,334			5,950,318			6,679,082			6,804,244			6,794,290			(16	)%		(26	)%
Total interest-bearing liabilities		22,929,632			25,325,620			27,451,484			28,403,276			28,302,353			(9	)%		(19	)%
Noninterest-bearing deposits		3,652,161			4,031,157			4,619,333			4,743,479			4,838,363			(9	)%		(25	)%
Other noninterest-bearing deposits-divestiture (b)		-			3,038			8,902			21,327			54,928		NM			NM
Capital markets payables		374,368			178,289			232,282			292,846			173,351			110	%		116	%
Other liabilities		692,759			827,244			995,931			1,234,695			1,262,345			(16	)%		(45	)%
Other liabilities-divestiture (b)		-			1,397			1,022			2,335			3,885		NM			NM
Preferred stock of subsidiary		295,165			295,277			295,277			295,277			295,277			*			*
Shareholders' equity		3,105,159			2,719,473			2,541,870			2,169,150			2,319,932			14	%		34	%
Total liabilities and shareholders' equity	$	31,049,244		$	33,381,495		$	36,146,101		$	37,162,385		$	37,250,434			(7	)%		(17	)%

NM - Not meaningful
* Amount is less than one percent.
Certain previously reported amounts have been reclassified to agree with current presentation.
(a)	Includes loans on nonaccrual status.
(b)	Third and second quarters 2008 associated with the sale of certain mortgage operations, prior periods associated with the sale of First Horizon Bank branches.
(c)	In fourth quarter 2008, FRB Term Auction Facility borrowings averaged $3.1 billion and FHLB borrowings averaged $1.7 billion.

12

CONSOLIDATED AVERAGE BALANCE SHEET: INCOME & EXPENSE
Quarterly, Unaudited
																4Q08 Change vs.
(Thousands)		4Q08			3Q08			2Q08			1Q08			4Q07			3Q08			4Q07
Assets:
Earning assets:
Loans, net of unearned income (a)	$	254,946		$	281,777		$	285,539		$	331,803		$	385,027			(10	)%		(34	)%
Loans held for sale		9,821			29,078			54,217			58,438			62,249			(66	)%		(84	)%
Investment securities:
U.S. Treasuries		233			250			249			340			434			(7	)%		(46	)%
U.S. government agencies		36,565			34,886			36,573			37,954			39,027			5	%		(6	)%
States and municipalities		944			372			324			220			4			154	%	NM
Other		6,080			3,336			2,159			2,290			2,904			82	%		109	%
Total investment securities		43,822			38,844			39,305			40,804			42,369			13	%		3	%
Capital markets securities inventory		12,790			15,898			18,131			22,652			25,261			(20	)%		(49	)%
Mortgage banking trading securities		8,253			11,781			12,120			13,363			16,436			(30	)%		(50	)%
Other earning assets:
Federal funds sold and securities
purchased under agreements to resell		1,493			5,944			6,266			9,341			13,485			(75	)%		(89	)%
Interest bearing cash		850			253			189			357			450			236	%		89	%
Total other earning assets		2,343			6,197			6,455			9,698			13,935			(62	)%		(83	)%
Total earning assets/interest income	$	331,975		$	383,575		$	415,767		$	476,758		$	545,277			(13	)%		(39	)%
Liabilities and shareholders' equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Other interest-bearing deposits	$	1,552		$	2,849		$	3,556		$	5,906		$	5,976			(46	)%		(74	)%
Savings		18,666			17,005			18,362			25,888			30,864			10	%		(40	)%
Time deposits		21,739			22,443			25,540			31,502			35,234			(3	)%		(38	)%
Total interest-bearing core deposits		41,957			42,297			47,458			63,296			72,074			(1	)%		(42	)%
Certificates of deposit $100,000 and more		12,680			15,184			17,361			31,069			59,851			(16	)%		(79	)%
Federal funds purchased and securities
sold under agreements to repurchase		2,738			10,696			17,834			38,521			52,635			(74	)%		(95	)%
Capital markets trading liabilities		5,876			8,304			9,400			9,615			10,588			(29	)%		(45	)%
Other short-term borrowings and commercial paper		20,164			36,496			31,591			31,527			30,229			(45	)%		(33	)%
Long term debt:
Term borrowings		38,062			41,598			47,129			66,303			82,870			(9	)%		(54	)%
Other collateralized borrowings		5,129			5,521			5,817			8,020			10,902			(7	)%		(53	)%
Total long-term debt		43,191			47,119			52,946			74,323			93,772			(8	)%		(54	)%
Total interest-bearing liabilities/interest expense	$	126,606		$	160,096		$	176,590		$	248,351		$	319,149			(21	)%		(60	)%
Net interest income-tax equivalent basis	$	205,369		$	223,479		$	239,177		$	228,407		$	226,128			(8	)%		(9	)%
Fully taxable equivalent adjustment		(421	)		(332	)		(282	)		(315	)		(141	)		(27	)%		(199	)%
Net interest income	$	204,948		$	223,147		$	238,895		$	228,092		$	225,987			(8	)%		(9	)%

NM - Not meaningful
Certain previously reported amounts have been reclassified to agree with current presentation.
Income amounts are adjusted to a fully taxable equivalent.  Earning assets income is expressed net of unearned income.
(a)	Includes loans on nonaccrual status.

13

CONSOLIDATED AVERAGE BALANCE SHEET: YIELDS & RATES
Quarterly, Unaudited
(Thousands)	4Q08		3Q08		2Q08			1Q08		4Q07
Assets:
Earning assets:
Loans, net of unearned income (a)	4.78	%	5.16	%	5.29	%		6.07	%	6.98	%
Loans held for sale	6.04		5.96		5.70			5.88		6.54
Investment securities:
U.S. Treasuries	1.92		2.08		2.13			3.15		4.77
U.S. government agencies	5.68		5.53		5.52			5.57		5.60
States and municipalities	5.03		4.70		4.14			6.87		.82
Other	8.60		4.96		3.35			3.94		5.03
Total investment securities	5.88		5.41		5.27			5.41		5.55
Capital markets securities inventory	4.51		4.69		4.45			4.62		5.22
Mortgage banking trading securities	13.59		12.86		12.48			13.18		12.46
Other earning assets:
Federal funds sold and securities
purchased under agreements to resell	.65		1.95		1.98			2.88		4.32
Interest bearing cash	.62		2.54		2.08			3.11		6.17
Total other earning assets	.64		1.97		1.98			2.89		4.36
Total earning assets/interest income	4.78	%	5.17	%	5.24	%		5.86	%	6.67	%
Liabilities and shareholders' equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Other interest-bearing deposits	.38	%	.66	%	.74	%		1.19	%	1.33	%
Savings	1.57		1.69		1.76			2.50		3.19
Time deposits	3.51		3.69		4.06			4.55		4.73
Total interest-bearing core deposits	1.89		2.06		2.21			2.85		3.33
Certificates of deposit $100,000 and more	3.38		3.28		3.45			4.63		5.28
Federal funds purchased and securities
sold under agreements to repurchase	.54		1.64		1.88			2.95		4.20
Capital markets trading liabilities	4.79		4.66		4.92			4.57		5.17
Other short-term borrowings and commercial paper	1.57		2.39		2.30			3.29		4.52
Long term debt:
Term borrowings	3.57		3.21		3.20			4.41		5.55
Other collateralized borrowings	2.74		2.92		2.94			4.06		5.36
Total long-term debt	3.45		3.17		3.17			4.37		5.52
Total interest-bearing liabilities/interest expense	2.20	%	2.52	%	2.58	%		3.51	%	4.49	%
Net interest spread	2.58	%	2.65	%	2.66	%		2.35	%	2.18	%
Effect of interest-free sources used to fund
earning assets	.38		.36		.35			.46		.59
Net interest margin	2.96	%	3.01	%	3.01	%		2.81	%	2.77	%

Certain previously reported amounts have been reclassified to agree with current presentation.
Yields are adjusted to a fully taxable equivalent.
Earning assets yields are expressed net of unearned income.
Rates are expressed net of unamortized debenture cost for long-term debt.
Net interest margin is computed using total net interest income.
(a)	Includes loans on nonaccrual status.

14

MORTGAGE SERVICING RIGHTS
Quarterly, Unaudited
																	4Q08 Change vs.
(Thousands)		4Q08			3Q08			2Q08			1Q08			4Q07				3Q08		4Q07
First Liens
Fair value beginning balance	$	770,635		$	1,111,204		$	865,855		$	1,122,415		$	1,429,245				(31	)%	(46	)%
Addition of mortgage servicing rights		1,073			61,501			100,305			78,871			67,300
Reductions due to loan payments		(10,771	)		(22,179	)		(38,598	)		(37,448	)		(40,930	)
Reductions due to sale		(52,006	)		(317,640	)		(72,271	)		(43,842	)		(96,502	)
Changes in fair value due to:
Changes in valuation model inputs
or assumptions (a)		(354,558	)		(63,061	)		255,890			(254,076	)		(236,695	)
Other changes in fair value		21			810			23			(65	)		(3	)
Fair value ending balance	$	354,394		$	770,635		$	1,111,204		$	865,855		$	1,122,415				(54	)%	(68	)%
Second Liens
Fair value beginning balance	$	17,513		$	18,138		$	20,126		$	25,832		$	28,747				(3	)%	(39	)%
Addition of mortgage servicing rights		-			-			-			-			-
Reductions due to loan payments		(1,517	)		(614	)		(1,737	)		(2,617	)		(2,097	)
Changes in fair value due to:
Changes in valuation model inputs
or assumptions (a)		(2,438	)		(14	)		(254	)		(3,089	)		(834	)
Other changes in fair value		-			3			3			-			16
Fair value ending balance	$	13,558		$	17,513		$	18,138		$	20,126		$	25,832				(23	)%	(48	)%
HELOC
Fair value beginning balance	$	10,343		$	10,053		$	9,942		$	11,573		$	12,597				3	%	(18	)%
Addition of mortgage servicing rights		43			43			215			887			174
Reductions due to loan payments		(432	)		(483	)		(491	)		(707	)		(736	)
Changes in fair value due to:
Changes in valuation model inputs
or assumptions (a)		(1,401	)		-			(230	)		(1,935	)		(462	)
Other changes in fair value		339			730			617			124			-
Fair value ending balance	$	8,892		$	10,343		$	10,053		$	9,942		$	11,573				(14	)%	(23	)%
Total Consolidated
Fair value beginning balance	$	798,491		$	1,139,395		$	895,923		$	1,159,820		$	1,470,589				(30	)%	(46	)%
Addition of mortgage servicing rights		1,116			61,544			100,520			79,758			67,474
Reductions due to loan payments		(12,720	)		(23,276	)		(40,826	)		(40,772	)		(43,763	)
Reductions due to sale		(52,006	)		(317,640	)		(72,271	)		(43,842	)		(96,502	)
Changes in fair value due to:
Changes in valuation model inputs
or assumptions (a)		(358,397	)		(63,075	)		255,406			(259,100	)		(237,991	)
Other changes in fair value		360			1,543			643			59			13
Fair value ending balance	$	376,844		$	798,491		$	1,139,395		$	895,923		$	1,159,820				(53	)%	(68	)%

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

15

BUSINESS SEGMENT HIGHLIGHTS
Quarterly, Unaudited
																	4Q08 Change vs.
(Thousands)		4Q08			3Q08			2Q08			1Q08			4Q07				3Q08			4Q07
Regional Banking
Total revenues (a)	$	199,974		$	210,298		$	212,920		$	207,636		$	229,125				(5	)%		(13	)%
Provision for loan losses		105,825			58,201			89,477			75,264			15,831				82	%		568	%
Noninterest expenses		167,828			158,628			150,294			150,523			159,882				6	%		5	%
Pre-tax income/(loss)		(73,679	)		(6,531	)		(26,851	)		(18,151	)		53,412			NM				(238	)%
Provision/(benefit) for income taxes		(27,511	)		(11,670	)		(19,838	)		(13,541	)		27,026				(136	)%		(202	)%
Net income/(loss) from continuing operations		(46,168	)		5,139			(7,013	)		(4,610	)		26,386			NM				(275	)%
Income from discontinued operations, net of tax		-			-			-			883			4,137			NM			NM
Net income/(loss)	$	(46,168	)	$	5,139		$	(7,013	)	$	(3,727	)	$	30,523			NM				(251	)%
National Specialty Lending
Total revenues (a)	$	36,332		$	49,424		$	39,052		$	55,040		$	54,321				(26	)%		(33	)%
Provision for loan losses		144,049			240,470			108,000			149,483			139,398				(40	)%		3	%
Noninterest expenses		21,873			23,487			26,675			25,146			31,067				(7	)%		(30	)%
Pre-tax (loss)		(129,590	)		(214,533	)		(95,623	)		(119,589	)		(116,144	)			40	%		(12	)%
Benefit for income taxes		(48,830	)		(79,488	)		(33,528	)		(46,359	)		(43,859	)			39	%		(11	)%
Net (loss)	$	(80,760	)	$	(135,045	)	$	(62,095	)	$	(73,230	)	$	(72,285	)			40	%		(12	)%
Mortgage Banking
Total revenues (a)	$	96,967		$	138,337		$	222,297		$	198,066		$	(79,826	)			(30	)%		221	%
Provision for loan losses		22,018			2,878			4,001			222			46			NM			NM
Noninterest expenses		39,503			89,040			149,062			147,543			174,203				(56	)%		(77	)%
Pre-tax income/(loss)		35,446			46,419			69,234			50,301			(254,075	)			(24	)%		114	%
Provision/(benefit) for income taxes		12,941			16,645			22,960			18,129			(99,185	)			(22	)%		113	%
Net income/(loss)	$	22,505		$	29,774		$	46,274		$	32,172		$	(154,890	)			(24	)%		115	%
Capital Markets
Total revenues (a)	$	197,471		$	117,527		$	143,150		$	153,579		$	119,191				68	%		66	%
Provision for loan losses		8,108			38,451			18,522			15,031			1,244				(79	)%		552	%
Noninterest expenses		114,955			87,674			100,559			115,728			87,042				31	%		32	%
Pre-tax income/(loss)		74,408			(8,598	)		24,069			22,820			30,905			NM				141	%
Provision/(benefit) for income taxes		27,910			(3,375	)		8,960			8,437			11,572			NM				141	%
Net income/(loss)	$	46,498		$	(5,223	)	$	15,109		$	14,383		$	19,333			NM				141	%
Corporate
Total revenues (a)	$	12,222		$	12,734		$	20,522		$	62,847		$	(3,837	)			(4	)%		419	%
Provision for loan losses		-			-			-			-			-			NM			NM
Noninterest expenses		5,499			43,445			39,253			(663	)		109,365				(87	)%		(95	)%
Pre-tax income/(loss)		6,723			(30,711	)		(18,731	)		63,510			(113,202	)			122	%		106	%
Provision/(benefit) for income taxes		4,502			(10,970	)		(7,375	)		25,188			(41,896	)			141	%		111	%
Net income/(loss)	$	2,221		$	(19,741	)	$	(11,356	)	$	38,322		$	(71,306	)			111	%		103	%
Total Consolidated
Total revenues (a)	$	542,966		$	528,320		$	637,941		$	677,168		$	318,974				3	%		70	%
Provision for loan losses		280,000			340,000			220,000			240,000			156,519				(18	)%		79	%
Noninterest expenses		349,658			402,274			465,843			438,277			561,559				(13	)%		(38	)%
Pre-tax income/(loss)		(86,692	)		(213,954	)		(47,902	)		(1,109	)		(399,104	)			59	%		78	%
Benefit for income taxes		(30,988	)		(88,859	)		(28,821	)		(8,146	)		(146,342	)			65	%		79	%
Net income/(loss) from continuing operations		(55,704	)		(125,095	)		(19,081	)		7,037			(252,762	)			55	%		78	%
Income from discontinued operations, net of tax		-			-			-			883			4,137			NM			NM
Net income/(loss)	$	(55,704	)	$	(125,095	)	$	(19,081	)	$	7,920		$	(248,625	)			55	%		78	%

NM - Not meaningful
Certain previously reported amounts have been reclassified to agree with current presentation.
(a)	Includes noninterest income and net interest income/(expense).

16

REGIONAL BANKING
Quarterly, Unaudited
																	4Q08 Change vs.
(Thousands)		4Q08			3Q08			2Q08			1Q08			4Q07				3Q08			4Q07
Income Statement
Net interest income	$	117,356		$	122,379		$	120,384		$	120,565		$	133,613				(4	)%		(12	)%
Noninterest income		82,618			87,919			92,536			87,071			95,511				(6	)%		(13	)%
Securities gains/(losses), net		-			-			-			-			1			NM			NM
Total revenue		199,974			210,298			212,920			207,636			229,125				(5	)%		(13	)%
Total noninterest expense		167,828			158,628			150,294			150,523			159,882				6	%		5	%
Provision		105,825			58,201			89,477			75,264			15,831				82	%		568	%
Pretax income/(loss)	$	(73,679	)	$	(6,531	)	$	(26,851	)	$	(18,151	)	$	53,412			NM			NM
Efficiency ratio		83.92	%		75.43	%		70.59	%		72.49	%		69.78	%
Balance Sheet (millions)
Average loans	$	10,898		$	10,915		$	10,801		$	10,705		$	10,667				*			2	%
Other earning assets		163			65			242			339			525				151	%		(69	)%
Total earning assets		11,061			10,980			11,043			11,044			11,192				1	%		(1	)%
Core deposits		9,753			9,564			9,970			10,059			9,854				2	%		(1	)%
Other deposits		978			976			1,053			1,160			1,369				*			(29	)%
Deposits - divestiture		-			-			37			153			378			NM				(100	)%
Total deposits		10,731			10,540			11,060			11,372			11,601				2	%		(7	)%
Total period end deposits		10,993			10,621			11,035			11,370			11,679				4	%		(6	)%
Total period end assets	$	11,999		$	12,301		$	12,234		$	12,172		$	12,674				(2	)%		(5	)%
Net interest margin		4.22	%		4.43	%		4.38	%		4.39	%		4.74	%
Noninterest Income Detail
Deposit transactions & cash mgmt	$	42,388		$	44,470		$	45,404		$	41,230		$	46,648				(5	)%		(9	)%
Insurance commissions		7,027			7,160			7,033			7,854			7,485				(2	)%		(6	)%
Trust services & investment mgmt		7,697			8,192			8,915			9,147			10,137				(6	)%		(24	)%
Bankcard Income		4,416			4,706			4,752			4,491			5,035				(6	)%		(12	)%
Other service charges		3,500			3,556			3,780			4,037			4,152				(2	)%		(16	)%
Miscellaneous revenue		17,590			19,835			22,652			20,312			22,054				(11	)%		(20	)%
Total noninterest income	$	82,618		$	87,919		$	92,536		$	87,071		$	95,511				(6	)%		(13	)%
Key Statistics
Locations
Financial Centers		202			200			198			206			216				1	%		(6	)%
First Tennessee		202			200			198			197			197				1	%		3	%
First Horizon Bank		-			-			-			9			19			NM				(100	)%
Trust Assets
Total assets (millions)	$	9,606		$	11,015		$	11,291		$	11,681		$	12,300				(13	)%		(22	)%
Total managed assets (millions)		4,664			5,089			5,373			5,641			5,880				(8	)%		(21	)%

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
																4Q08 Change vs.
(Thousands)		4Q08			3Q08			2Q08			1Q08			4Q07			3Q08		4Q07
Income Statement
Net interest income
Correspondent Banking	$	12,337		$	11,841		$	12,399		$	12,808		$	11,437			4	%	8	%
Capital Markets		7,829			7,151			6,094			6,841			4,389			9	%	78	%
Total net interest income		20,166			18,992			18,493			19,649			15,826			6	%	27	%
Noninterest income:
Fixed income		156,522			80,104			105,002			152,208			77,126			95	%	103	%
Other		20,783			18,431			19,655			(18,278	)		26,239			13	%	(21	)%
Total noninterest income		177,305			98,535			124,657			133,930			103,365			80	%	72	%
Total revenue		197,471			117,527			143,150			153,579			119,191			68	%	66	%
Noninterest expense		114,955			87,674			100,559			115,728			87,042			31	%	32	%
Provision		8,108			38,451			18,522			15,031			1,244			(79	)%	552	%
Pretax income/(loss)	$	74,408		$	(8,598	)	$	24,069		$	22,820		$	30,905		NM			141	%
Efficiency ratio		58.21	%		74.60	%		70.25	%		75.35	%		73.03	%
Balance Sheet (millions)
Trading inventory	$	1,135		$	1,356		$	1,631		$	1,962		$	1,934			(16	)%	(41	)%
Average Loans (a)		1,719			1,759			1,491			1,465			1,402			(2	)%	23	%
Other earning assets		981			1,275			1,656			1,728			1,708			(23	)%	(43	)%
Total earning assets		3,835			4,390			4,778			5,155			5,044			(13	)%	(24	)%
Total period end assets	$	5,055		$	5,968		$	5,602		$	6,154		$	5,265			(15	)%	(4	)%
Net interest margin:
Correspondent Banking		3.46	%		2.97	%		3.06	%		3.28	%		3.01	%
Capital Markets		1.29	%		1.01	%		.78	%		.77	%		.49	%
Total Capital Markets		2.09	%		1.72	%		1.56	%		1.53	%		1.24	%

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
																	4Q08 Change vs.
(Thousands)		4Q08			3Q08			2Q08			1Q08			4Q07				3Q08		4Q07
Income Statement
Net interest income	$	36,841		$	45,243		$	53,555		$	54,389		$	58,698				(19	)%	(37	)%
Noninterest income		(509	)		4,181			(14,503	)		651			(4,377	)			(112	)%	88	%
Total revenue		36,332			49,424			39,052			55,040			54,321				(26	)%	(33	)%
Total noninterest expense		21,873			23,487			26,675			25,146			31,067				(7	)%	(30	)%
Provision		144,049			240,470			108,000			149,483			139,398				(40	)%	3	%
Pretax (loss)	$	(129,590	)	$	(214,533	)	$	(95,623	)	$	(119,589	)	$	(116,144	)			40	%	(12	)%
Efficiency ratio		60.20	%		47.52	%		68.31	%		45.69	%		57.19	%
Balance Sheet (millions)
Average loans	$	7,922		$	8,415		$	8,966		$	9,393		$	9,450				(6	)%	(16	)%
Other earning assets		9			8			17			21			175				13	%	(95	)%
Total earning assets		7,931			8,423			8,983			9,414			9,625				(6	)%	(18	)%
Total deposits		140			181			240			291			353				(23	)%	(60	)%
Total period end deposits		126			156			208			260			317				(19	)%	(60	)%
Net interest margin		1.85	%		2.14	%		2.40	%		2.32	%		2.42	%

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
																	4Q08 Change vs.
(Thousands)		4Q08			3Q08			2Q08			1Q08			4Q07				3Q08		4Q07
Income Statement
Net interest income	$	10,937		$	22,517		$	31,835		$	30,052		$	22,852			NM		NM
Noninterest income
Net origination fees (a)		(14,383	)		19,828			134,095			84,056			5,008			NM		NM
Net servicing fees		99,402			80,603			42,614			69,344			(118,107	)		NM		NM
Other fees		1,011			15,389			13,753			14,614			10,421			NM		NM
Total noninterest income		86,030			115,820			190,462			168,014			(102,678	)		NM		NM
Total revenue		96,967			138,337			222,297			198,066			(79,826	)		NM		NM
Noninterest expense (b)		39,503			89,040			149,062			147,543			174,203			NM		NM
Provision		22,018			2,878			4,001			222			46			NM		NM
Pretax income/(loss)	$	35,446		$	46,419		$	69,234		$	50,301		$	(254,075	)		NM		NM
Efficiency ratio		40.74	%		64.36	%		67.06	%		74.49	%		(218.23	)%
Average Balance Sheet (millions)
Warehouse	$	489		$	1,810		$	3,182		$	3,230		$	2,672			NM		NM
Trading securities		235			359			372			387			511			NM		NM
Mortgage servicing rights		633			1,003			974			1,020			1,354			NM		NM
Permanent Mortgages & other assets		1,424			1,711			1,692			1,473			1,348			NM		NM
Total assets		2,781			4,883			6,220			6,110			5,885			NM		NM
Escrow balances		725			989			1,516			1,691			1,709			NM		NM
Net interest margin		2.84	%		3.05	%		3.16	%		2.98	%		2.48	%
Warehouse Spread		NM			3.83	%		3.14	%		2.63	%		1.54	%
Noninterest Expense Detail
Commissions & incentives (a)	$	130		$	18,415		$	41,369		$	45,956		$	39,359
FAS 91 cost deferral (a)		492			1,097			1,789			764			(3,878	)
Other salaries & benefits		(2,090	)		22,011			39,228			35,700			38,727
Total salaries & benefits		(1,468	)		41,523			82,386			82,420			74,208			NM		NM
Contract labor & outsourcing		7,381			5,207			3,654			2,781			1,968
Equipment & occupancy		3,448			8,882			13,513			14,895			14,814
Foreclosure provision		2,752			849			5,535			2,395			4,872
Other expenses (a)		25,674			32,636			43,536			45,115			120,155
Total expenses before FAS 91 reclass		37,787			89,097			148,624			147,606			216,017			NM		NM
FAS 91 reclassification (a)(c)		(517	)		(3,064	)		(4,520	)		(3,962	)		(46,133	)
Total noninterest expense before
segment allocations		37,270			86,033			144,104			143,644			169,884
Segment allocations		2,233			3,007			4,958			3,899			4,319
Total noninterest expense	$	39,503		$	89,040		$	149,062		$	147,543		$	174,203			NM		NM
Origination Income
Origination fees	$	(55	)	$	22,995		$	48,555		$	54,636		$	47,789
FAS 91 fee deferral (a)		496			937			1,381			-			(4,818	)
Appraisal, final inspection,
credit report fees		45			2,824			5,537			5,953			5,387
Total origination fees	$	486		$	26,756		$	55,473		$	60,589		$	48,358			NM		NM
Total Origination Income	$	(14,383	)	$	19,828		$	134,095		$	84,056		$	5,008			NM		NM
Warehouse/Pipeline (millions)
Ending Warehouse Balance	$	408		$	541		$	2,433		$	3,130		$	2,971			NM		NM
Production (millions)
First lien production	$	88		$	3,107		$	6,826		$	7,510		$	6,308			NM		NM

NM - Not meaningful due to Mortgage sale in 3Q08
* Amount is less than one percent.
Certain previously reported amounts have been reclassified to agree with current presentation.
(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.

20

MORTGAGE BANKING: SERVICING
Quarterly, Unaudited
																	4Q08 Change vs.
(Thousands)		4Q08			3Q08			2Q08			1Q08			4Q07				3Q08		4Q07
Servicing Income
Gross Service Fees	$	47,810		$	57,326		$	74,941		$	88,891		$	90,153
Guarantee Fees		(7,626	)		(11,073	)		(16,762	)		(18,791	)		(19,775	)
Sub-Service Fee Income		103			394			504			243			244
Lender Paid MI		5			(1,029	)		(3	)		(4	)		(21	)
Net Service Fees		40,292			45,618			58,680			70,339			70,601				(12	)%	(43	)%
Early Payoff Interest Expense		(1,562	)		(1,733	)		(4,477	)		(5,446	)		(3,626	)
Ancillary Fees		5,949			5,994			8,991			9,214			9,192
Total Service Fees		44,679			49,879			63,194			74,107			76,167				(10	)%	(41	)%
Change in MSR Value - Runoff		(9,899	)		(20,091	)		(37,079	)		(37,449	)		(40,930	)			51	%	76	%
Net hedging results:
Change in MSR Value - Other than Runoff (a)		(327,310	)		(39,180	)		237,816			(255,485	)		(234,998	)
MSR Hedge Gains/(Losses)		502,268			91,804			(219,454	)		280,935			119,651
Change in Trading Asset Value (a)		(99,354	)		(11,198	)		83,543			(74,136	)		(73,496	)
Trading Asset Hedge Gains/(Losses)		(8,172	)		21,505			(78,832	)		86,322			59,022
Option Expense on Servicing Hedges		(2,811	)		(12,116	)		(6,574	)		(4,950	)		(23,523	)
Total net hedging results		64,621			50,815			16,499			32,686			(153,344	)			27	%	142	%
Total Servicing Income	$	99,401		$	80,603		$	42,614		$	69,344		$	(118,107	)			23	%	184	%
Key Servicing Metrics (millions)
Beginning Servicing Portfolio	$	65,346		$	98,385		$	99,022		$	103,709		$	108,401
Additions to portfolio		(83	)		3,107			6,991			7,650			6,399
Prepayments		(1,146	)		(1,350	)		(2,811	)		(4,144	)		(2,931	)
Amortization		(420	)		(550	)		(672	)		(675	)		(725	)
Service Release Sales		(31	)		(117	)		(76	)		(69	)		(166	)
Bulk Sale		(5	)		(34,129	)		(4,069	)		(7,449	)		(7,269	)
Ending Servicing Portfolio (Owned)	$	63,661		$	65,346		$	98,385		$	99,022		$	103,709				(3	)%	(39	)%
Avg. Servicing Portfolio (Owned)	$	64,550		$	81,130		$	95,124		$	103,794		$	107,259				(20	)%	(40	)%
Average Loans Serviced (#)		351,157			450,651			547,828			618,505			632,482				(22	)%	(44	)%
Portfolio Product Mix (Average)
GNMA		4	%		5	%		10	%		8	%		8	%
FNMA/FHLMC		58	%		64	%		63	%		64	%		65	%
Private		37	%		30	%		24	%		25	%		24	%
Sub-Total		99	%		99	%		97	%		97	%		97	%
Warehouse		1	%		1	%		3	%		3	%		3	%
Total		100	%		100	%		100	%		100	%		100	%
Other Portfolio Statistics
Net Service Fees - Annualized (bps)		25			22			25			27			26
Total Service Fees - Annualized (bps)		28			25			27			29			28
Ancillary Income per Loan (Annualized)	$	67.77		$	53.20		$	65.65		$	59.59		$	58.13				27	%	17	%
Servicing Cost per Loan (Annualized)	$	79.80		$	62.45		$	61.22		$	56.39		$	50.56				28	%	58	%
Average Servicing Asset (millions) (b)		632			1,002			973			1,019			1,353
Servicing Book Value (bps)		98			124			102			98			126
90+  Delinquency Rate, excluding foreclosures		3.47	%		2.58	%		2.08	%		1.73	%		1.48	%
Change in MSR Asset /
Average Servicing Asset		(105	)%		(13	)%		8	%		5	%		46	%
Run-Off Rate - Annualized		10	%		10	%		14	%		18	%		14	%

NM - Not meaningful
* Amount is less than one percent.
Certain previously reported amounts have been reclassified to agree with current presentation.
(a)	4Q07 includes a portion of the $135 million valuation adjustment.
(b)	Includes valuation reserve/MSRs only.

21

CORPORATE
Quarterly, Unaudited
																	4Q08 Change vs.
(Thousands)		4Q08			3Q08			2Q08			1Q08			4Q07				3Q08			4Q07
Income Statement
Net interest income/(expense)	$	20,202		$	14,382		$	14,771		$	3,558		$	(4,795	)			40	%		521	%
Net interest expense from
deferred compensation		(554	)		(366	)		(143	)		(121	)		(207	)			(51	)%		(168	)%
Total net interest income/(expense)		19,648			14,016			14,628			3,437			(5,002	)			40	%		493	%
Noninterest income		3,759			4,073			5,541			14			13,275				(8	)%		(72	)%
Noninterest income from
deferred compensation		(12,531	)		(5,145	)		1,325			(6,550	)		(1,667	)			(144	)%		(652	)%
Total noninterest income		(8,772	)		(1,072	)		6,866			(6,536	)		11,608				(718	)%		(176	)%
Securities gains/(losses), net		1,346			(210	)		(972	)		65,946			(10,443	)		NM			NM
Total revenue		12,222			12,734			20,522			62,847			(3,837	)			(4	)%		419	%
Noninterest expense		20,102			50,900			37,433			7,414			110,753				(61	)%		(82	)%
Deferred compensation expense		(14,603	)		(7,455	)		1,820			(8,077	)		(1,388	)			(96	)%		(952	)%
Total noninterest expense		5,499			43,445			39,253			(663	)		109,365				(87	)%		(95	)%
Pretax income/(loss)	$	6,723		$	(30,711	)	$	(18,731	)	$	63,510		$	(113,202	)			122	%		106	%
Average Balance Sheet (millions)
Total earning assets		3,329			2,835			2,974			3,001			2,986				17	%		11	%
Net interest margin		2.35	%		1.97	%		1.98	%		.46	%		(.66	)%

NM - Not meaningful

* Amount is less than one percent.

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

22

CAPITAL HIGHLIGHTS
Quarterly, Unaudited
																4Q08 Change vs.
(Dollars in millions, except per share amounts)		4Q08			3Q08			2Q08			1Q08			4Q07			3Q08		4Q07
Tier 1 Capital (a)	$	3,767.4		$	2,934.0		$	3,034.7		$	2,443.9		$	2,459.5			28	%	53	%
Tier 2 Capital (a)		1,300.2			1,313.7			1,341.7			1,421.0			1,400.5			(1	)%	(7	)%
Total Capital (a)	$	5,067.6		$	4,247.7		$	4,376.4		$	3,864.9		$	3,860.0			19	%	31	%
Risk-Adjusted Assets (a)	$	25,247.8		$	26,427.2		$	28,884.7		$	29,709.3		$	30,271.9			(4	)%	(17	)%
Tier 1 Ratio (a)		14.92	%		11.10	%		10.51	%		8.23	%		8.12	%
Tier 2 Ratio (a)		5.15			4.97			4.64			4.78			4.63
Total Capital Ratio (a)		20.07	%		16.07	%		15.15	%		13.01	%		12.75	%
Leverage Ratio (a)		12.12	%		8.84	%		8.45	%		6.62	%		6.64	%
Shareholders' Equity/Assets Ratio (b)		10.57			7.86			7.59			5.67			5.77
Tangible Common Equity/RWA (a)		8.78			8.78			8.45			6.17			6.16
Tangible Common Equity/Tangible Assets		7.34			7.18			6.96			5.04			5.13
Tangible Book Value (c)	$	10.98		$	11.36		$	11.92		$	13.98		$	14.16
Book Value (c)		12.13			12.52			13.09			15.81			16.03

NM - Not meaningful

* Amount is less than one percent.

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

(a)  Current quarter is an estimate.

(b)  Calculated on period-end balances.

(c)  Shares restated for October 1, 2008 and January 1, 2009 stock dividends.

23

ASSET QUALITY: CONSOLIDATED
Quarterly, Unaudited
																	4Q08 Change vs.
(Thousands)		4Q08			3Q08			2Q08			1Q08			4Q07				3Q08			4Q07
Allowance for Loan Losses Walk-Forward
Beginning Reserve	$	760,456		$	575,149		$	483,203		$	342,341		$	236,611				32	%		221	%
Provision		280,000			340,000			220,000			240,000			156,519				(18	)%		79	%
Divestitures/acquisitions/transfers		-			-			(382	)		-			4			NM				(100	)%
Charge-offs		(199,075	)		(160,200	)		(131,385	)		(101,756	)		(54,891	)			(24	)%		(263	)%
Recoveries		7,829			5,507			3,713			2,618			4,098				42	%		91	%
Ending Balance	$	849,210		$	760,456		$	575,149		$	483,203		$	342,341				12	%		148	%
Reserve for off-balance sheet commitments		18,752			19,109			22,303			11,786			10,726				(2	)%		75	%
Total allowance for loan losses plus reserve	$	867,962		$	779,565		$	597,452		$	494,989		$	353,067				11	%		146	%
Allowance for Loan Losses
Regional Banking	$	311,399		$	269,397		$	240,507		$	184,472		$	139,150				16	%		124	%
Capital Markets		63,554			63,654			42,745			24,338			13,522				*			370	%
National Specialty Lending		446,254			420,220			287,212			273,127			188,550				6	%		137	%
Mortgage Banking		28,003			7,185			4,685			1,266			1,119				290	%	NM
Total allowance for loan losses	$	849,210		$	760,456		$	575,149		$	483,203		$	342,341				12	%		148	%
Non-Performing Assets
Regional Banking
Nonperforming loans	$	163,933		$	133,138		$	115,264		$	81,244		$	30,608				23	%		436	%
Foreclosed real estate		31,665			32,078			37,594			38,019			35,026				(1	)%		(10	)%
Total Regional Banking		195,598			165,216			152,858			119,263			65,634				18	%		198	%
Capital Markets
Nonperforming loans		27,339			27,284			41,527			13,030			8,970				*			205	%
Foreclosed real estate		600			600			600			600			810				*			(26	)%
Total Capital Markets		27,939			27,884			42,127			13,630			9,780				*			186	%
National Specialty Lending
Nonperforming loans		834,042			718,624			582,523			433,285			243,711				16	%		242	%
Foreclosed real estate		52,725			57,251			45,384			29,680			34,120				(8	)%		55	%
Total National Specialty Lending		886,767			775,875			627,907			462,965			277,831				14	%		219	%
Mortgage Banking
Nonperforming loans - including held for sale (a)		28,335			20,930			30,704			9,693			23,797				35	%		19	%
Foreclosed real estate		19,318			25,589			22,542			15,373			15,385				(25	)%		26	%
Total Mortgage Banking		47,653			46,519			53,246			25,066			39,182				2	%		22	%
Total nonperforming assets	$	1,157,957		$	1,015,494		$	876,138		$	620,924		$	392,427				14	%		195	%
Net Charge-Offs
Regional Banking	$	63,822		$	29,310		$	33,337		$	29,942		$	12,421				118	%		414	%
Capital Markets		8,207			17,543			114			4,215			2,794				(53	)%		194	%
National Specialty Lending		118,017			107,462			93,640			64,906			35,635				10	%		231	%
Mortgage Banking		1,200			378			581			75			(57	)			217	%	NM
Total net charge-offs	$	191,246		$	154,693		$	127,672		$	99,138		$	50,793				24	%		277	%
Consolidated Key Ratios (b)
NPL %		4.91	%		4.12	%		3.42	%		2.41	%		1.28	%
NPA %		5.38			4.63			3.88			2.78			1.66
Net charge-offs %		3.61			2.84			2.35			1.81			.93
Allowance / Loans		3.99			3.52			2.59			2.20			1.55
Allowance to loans excluding insured loans		4.11			3.63			2.68			2.26			1.62
Allowance / NPL		.81	x		.85	x		.76	x		.92	x		1.21	x
Allowance / NPA		.74	x		.76	x		.66	x		.79	x		.93	x
Allowance / Charge-offs		1.11	x		1.23	x		1.13	x		1.22	x		1.68	x
Other
Loans past due 90 days or more (c)	$	133,067		$	119,588		$	157,277		$	300,185		$	251,509				11	%		(47	)%
Guaranteed portion (c)		42,478			50,419			64,696			223,572			190,899				(16	)%		(78	)%
Foreclosed real estate from GNMA loans		21,230			35,943			35,737			22,346			18,642				(41	)%		14	%
Period-end loans, net of unearned income (millions)	$	21,278		$	21,602		$	22,225		$	21,932		$	22,104				(1	)%		(4	)%
Insured loans (millions)		591			652			739			809			913				(9	)%		(35	)%
Total loans excluding insured loans (millions)	$	20,687		$	20,950		$	21,486		$	21,123		$	21,191				(1	)%		*
Off-balance sheet commitments (millions) (d)	$	6,442		$	6,746		$	6,444		$	6,826		$	6,929				(5	)%		(7	)%

NM - Not meaningful
* Amount is less than one percent
Certain previously reported amounts have been reclassified to agree with current presentation.
(a)	4Q 2008 includes $19,867 of loans held-to-maturity.
(b)	See Glossary of Terms for definitions of Consolidated Key Ratios.
(c)	Includes loans held for sale.
(d)	Amount of off-balance sheet commitments for which a reserve has been provided.

24

ASSET QUALITY: CONSOLIDATED
Quarterly, Unaudited
																4Q08 Change vs.
		4Q08			3Q08			2Q08			1Q08			4Q07			3Q08		4Q07
Key Portfolio Details
Commercial (C&I & Other)
Period-end loans ($ millions)	$	7,806		$	7,618		$	7,721		$	7,225		$	6,969			2	%	12	%
30+ Delinq. %		.53	%		1.15	%		1.46	%		.93	%		.50	%
NPL %		1.03			1.05			1.20			.64			.24
Charge-offs % (qtr. annualized)		2.21			1.64			.84			.83			.20
Allowance / Loans %		2.46	%		2.29	%		1.90	%		1.59	%
Allowance / Charge-offs		1.16	x		1.41	x		2.46	x		2.31	x
Income CRE (Income-producing Commercial Real Estate)
Period-end loans ($ millions)	$	1,988		$	2,038		$	2,039		$	1,982		$	1,948			(2	)%	2	%
30+ Delinq. %		2.42	%		3.47	%		1.43	%		.57	%		1.96	%
NPL %		5.02			3.72			3.54			2.01			.27
Charge-offs % (qtr. annualized)		2.73			.24			.63			1.94			.13
Allowance / Loans %		4.71	%		3.73	%		2.89	%		2.47	%
Allowance / Charge-offs		1.70	x		15.48	x		4.82	x		1.28	x
Residential CRE (Homebuilder and Condominium Construction)
Period-end loans ($ millions)	$	1,288		$	1,480		$	1,739		$	1,980		$	2,093			(13	)%	(38	)%
30+ Delinq. %		3.74	%		5.73	%		6.36	%		2.73	%		3.56	%
NPL %		30.71			23.64			16.65			12.07			6.43
Charge-offs % (qtr. annualized)		15.79			11.95			6.23			5.93			3.82
Allowance / Loans %		8.25	%		7.55	%		5.26	%		3.64	%
Allowance / Charge-offs		.49	x		.58	x		.76	x		.58	x
Consumer Real Estate (Home Equity Installment and HELOC)
Period-end loans ($ millions)	$	7,749		$	7,830		$	7,909		$	7,964		$	8,182			(1	)%	(5	)%
30+ Delinq. %		1.97	%		1.49	%		1.27	%		1.55	%		1.43	%
NPL %		.07			.07			.09			.11			.09
Charge-offs % (qtr. annualized)		1.81			1.41			1.78			.93			.62
Allowance / Loans %		2.35	%		1.58	%		1.70	%		1.19	%
Allowance / Charge-offs		1.29	x		1.12	x		0.95	x		1.28	x
OTC (Consumer Residential Construction Loans)
Period-end loans ($ millions)	$	981		$	1,202		$	1,522		$	1,815		$	2,008			(18	)%	(51	)%
30+ Delinq. %		4.43	%		4.92	%		2.69	%		2.67	%		2.50	%
NPL %		43.03			28.94			17.61			11.01			5.68
Charge-offs % (qtr. annualized)		14.80			12.29			9.90			4.63			2.18
Allowance / Loans %		20.44	%		20.16	%		7.75	%		6.49	%
Allowance / Charge-offs		1.25	x		1.46	x		0.78	x		1.33	x
Permanent Mortgage
Period-end loans ($ millions)	$	1,127		$	1,080		$	1,004		$	647		$	562			4	%	100	%
30+ Delinq. %		6.94	%		7.38	%		6.36	%		7.73	%		5.59	%
NPL %		3.73			2.94			3.04			-			-
Charge-offs % (qtr. annualized)		.57			.22			1.15			.41			.55
Allowance / Loans %		4.76	%		1.17	%		1.24	%		.20	%
Allowance / Charge-offs		8.59	x		5.48	x		1.12	x		1.75	x
Credit Card and Other
Period-end loans ($ millions)	$	339		$	354		$	291		$	319		$	342			(4	)%	(1	)%
30+ Delinq. %		2.47	%		2.08	%		2.11	%		2.37	%		2.17	%
NPL %		-			-			-			-			-
Charge-offs % (qtr. annualized)		5.09	%		5.30	%		3.29	%		5.14	%		2.45	%
Allowance / Loans %		6.35	%		5.52	%		5.43	%		4.58	%
Allowance / Charge-offs		1.24	x		1.06	x		1.45	x		.89	x

NM - Not meaningful

* Amount is less than one percent

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

25

Analysis of FAS 114 Loans, ORE, & NPL Rollforward
Unaudited
($ in millions)
Commercial Portfolio
Reserves		Reserves	Balances	%
	FAS 114 Impaired Loans with Reserves	$12.3	$59.2	20.80%
	FAS 114 Impaired Loans without Reserves	-	414.9	-
	All Other Loans	379.5	10,608.6	3.58%
	Total	$391.8	$11,082.7	3.54%
NRV Assessment of Commercial FAS 114 Impaired Assets with no Reserves
		#	Appraised Value	Legal Balance	Cumulative C/O	Book    Balance	Book Bal / Appraised Val
	FAS 114 Relationships with no Reserves	180	$723.0	$606.0	$191.0	$414.9	57.4%
ORE Inventory Rollforward
				Q4	Q3	Q2
		Beginning ORE		$115.5	$106.1	$83.7
		- Dispositions		(33.0)	(28.2)	(12.9)
		+ Additions		21.8	37.6	35.3
		Ending ORE		$104.3	$115.5	$106.1
NPL Rollforward (a)
				Q4	Q3	Q2
		Beginning NPLs		$854	$722	$501
		+ Additions		393	356	365
		+ Principal Increase		7	4	3
		- Payments		(82)	(75)	(36)
		- Charge-Offs		(150)	(122)	(86)
		- Transfer to ORE		(18)	(30)	(24)
		- Upgrade to Accrual		(6)	(1)	(1)
		Ending NPLs		$998	$854	$722
		(a) Includes Commercial & One Time Close Portfolios only

26

ASSET QUALITY: REGIONAL BANKING
Quarterly, Unaudited
																	4Q08 Change vs.
		4Q08			3Q08			2Q08			1Q08			4Q07				3Q08		4Q07
Total Regional Banking
Period-end loans ($ millions)	$	11,017		$	11,008		$	11,037		$	10,803		$	10,631				*		4	%
30+ Delinq. %		1.07	%		1.45	%		1.50	%		1.23	%		1.16	%
NPL %		1.49			1.21			1.04			.75			.29
Charge-offs % (qtr. annualized)		2.34			1.07			1.23			1.16			.50
Allowance / Loans %		2.83	%		2.45	%		2.18	%		1.71	%		1.31	%
Allowance / Charge-offs		1.22	x		2.30	x		1.80	x		1.54	x		2.80	x
Key Portfolio Details
Commercial (C&I & Other)
Period-end loans ($ millions)	$	6,132		$	6,064		$	6,107		$	6,134		$	5,940				1	%	3	%
30+ Delinq. %		.54	%		1.37	%		1.40	%		.98	%		.50	%
NPL %		1.18			1.09			.92			.62			.30
Charge-offs % (qtr. annualized)		2.36			.96			1.03			.75			.31
Allowance / Loans %		2.34	%		2.10	%		1.92	%		1.59	%
Allowance / Charge-offs		1.01	x		2.21	x		1.98	x		2.29	x
Income CRE (Income-producing Commercial Real Estate)
Period-end loans ($ millions)	$	1,462		$	1,504		$	1,484		$	1,365		$	1,320				(3	)%	11	%
30+ Delinq. %		1.25	%		1.21	%		.99	%		.52	%		2.60	%
NPL %		2.31			1.73			1.60			1.42			.04
Charge-offs % (qtr. annualized)		1.50			.07			.46			2.57			.04
Allowance / Loans %		4.70	%		3.45	%		2.80	%		2.35	%
Allowance / Charge-offs		3.09	x		49.80	x		6.68	x		.93	x
Residential CRE (Homebuilder and Condominium Construction)
Period-end loans ($ millions)	$	435		$	473		$	528		$	526		$	570				(8	)%	(24	)%
30+ Delinq. %		4.97	%		3.94	%		5.43	%		2.61	%		2.10	%
NPL %		13.27			8.71			6.68			4.68			2.14
Charge-offs % (qtr. annualized)		9.97			4.55			2.02			2.30			2.30
Allowance / Loans %		8.54	%		8.52	%		5.61	%		3.92	%
Allowance / Charge-offs		.83	x		1.75	x		2.93	x		1.65	x
Consumer Real Estate (Home Equity Installment and HELOC)
Period-end loans ($ millions)	$	2,644		$	2,606		$	2,614		$	2,486		$	2,491				1	%	6	%
30+ Delinq. %		1.41	%		1.32	%		1.22	%		1.83	%		1.70	%
Charge-offs % (qtr. annualized)		1.23			.81			1.50			.76			.64
Allowance / Loans %		1.70	%		1.26	%		1.36	%		.70	%
Allowance / Charge-offs		1.40	x		1.57	x		.90	x		.92	x
Credit Card, Permanent Mortgage, and Other
Period-end loans ($ millions)	$	345		$	361		$	304		$	293		$	310				(5	)%	11	%
30+ Delinq. %		2.09	%		1.66	%		1.71	%		1.89	%		1.77	%
Charge-offs % (qtr. annualized)		4.04			4.69			2.37			4.69			1.71
Allowance / Loans %		5.07	%		5.31	%		5.55	%		4.43	%
Allowance / Charge-offs		1.25	x		1.16	x		2.34	x		.95	x

NM - Not meaningful

* Amount is less than one percent

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

27

ASSET QUALITY: NATIONAL SPECIALTY LENDING
Quarterly, Unaudited
																4Q08 Change vs.
		4Q08			3Q08			2Q08			1Q08			4Q07			3Q08			4Q07
Total National Specialty Lending
Period-end loans ($ millions)	$	7,668		$	8,058		$	8,622		$	9,114		$	9,554			(5	)%		(20	)%
30+ Delinq. %		3.46	%		3.67	%		2.67	%		1.85	%		2.02	%
NPL %		10.88			8.92			6.76			4.75			2.55
Charge-offs % (qtr. annualized)		6.00			5.14			4.18			2.80			1.50
Allowance / Loans %		5.82	%		5.21	%		3.33	%		3.00	%		1.97	%
Allowance / Charge-offs		.95	x		.98	x		.77	x		1.05	x		1.32	x
Key Portfolio Details
Income CRE (Income-producing Commercial Real Estate)
Period-end loans ($ millions)	$	356		$	378		$	395		$	428		$	393			(6	)%		(10	)%
30+ Delinq. %		7.51	%		13.37	%		.80	%		.55	%		.76	%
NPL %		18.22			12.77			12.15			4.65			1.18
Charge-offs % (qtr. annualized)		8.74			.91			1.43			.87			-
Allowance / Loans %		4.67	%		4.28	%		2.63	%		3.07	%
Allowance / Charge-offs		.50	x		4.53	x		1.72	x		3.67	x
Residential CRE (Homebuilder and Condominium Construction)
Period-end loans ($ millions)	$	780		$	927		$	1,133		$	1,363		$	1,431			(16	)%		(46	)%
30+ Delinq. %		3.19	%		5.05	%		6.62	%		2.78	%		4.28	%
NPL %		40.97			32.03			22.02			15.36			7.80
Charge-offs % (qtr. annualized)		19.26			16.06			8.18			7.45			4.01
Allowance / Loans %		8.03	%		6.79	%		4.90	%		3.53	%
Allowance / Charge-offs		.38	x		.38	x		.50	x		.46	x
Consumer Real Estate (Home Equity Installment and HELOC)
Period-end loans ($ millions)	$	5,105		$	5,223		$	5,295		$	5,478		$	5,691			(2	)%		(10	)%
30+ Delinq. %		2.26	%		1.57	%		1.30	%		1.44	%		1.33	%
NPL %		.10			.11			.13			.12			.09
Charge-offs % (qtr. annualized)		2.10			1.70			1.91			1.02			.62
Allowance / Loans %		2.68	%		1.74	%		1.84	%		1.43	%
Allowance / Charge-offs		1.26	x		1.01	x		.96	x		1.41	x
OTC (Consumer Residential Construction Loans)
Period-end loans ($ millions)	$	981		$	1,202		$	1,522		$	1,815		$	2,008			(18	)%		(51	)%
30+ Delinq. %		4.43	%		4.92	%		2.69	%		2.67	%		2.50	%
NPL %		43.03			28.94			17.61			11.01			5.68
Charge-offs % (qtr. annualized)		14.80			12.29			9.90			4.63			2.18
Allowance / Loans %		20.44	%		20.16	%		7.75	%		6.49	%
Allowance / Charge-offs		1.25	x		1.46	x		.78	x		1.33	x
Permanent Mortgage
Period-end loans ($ millions)	$	417		$	297		$	249			n/a			n/a			40	%	NM
30+ Delinq. %		12.60	%		18.39	%		16.43	%		n/a			n/a
NPL %		5.32			6.71			7.14			n/a			n/a
Charge-offs % (qtr. annualized)		-			-			-			n/a			n/a
Allowance / Loans %		6.13	%		1.84	%		2.38	%		n/a
Allowance / Charge-offs	NM				-			-			n/a
Other Consumer
Period-end loans ($ millions)	$	29		$	30		$	28		$	29		$	32			(4	)%		(10	)%
30+ Delinq. %		8.14	%		6.65	%		6.39	%		6.90	%		6.00	%
NPL %		-			-			-			-			-
Charge-offs % (qtr. annualized)		11.31	%		11.66	%		13.26			9.13			9.61
Allowance / Loans %		13.87	%		7.84	%		4.06	%		5.46	%
Allowance / Charge-offs		1.22	x		.66	x		.31	x		.60	x

NM - Not meaningful

* Amount is less than one percent

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

28

ASSET QUALITY: MORTGAGE BANKING & CAPITAL MARKETS
Quarterly, Unaudited
																	4Q08 Change vs.
		4Q08			3Q08			2Q08			1Q08			4Q07				3Q08		4Q07
Total Mortgage Banking
Period-end loans ($ millions)	$	674		$	746		$	715		$	647		$	562				(10	)%	20	%
30+ Delinq. %		3.63	%		3.35	%		2.88	%		7.73	%		5.59	%
Allowance / Loans %		4.15	%		.96	%		.66	%		.20	%		.20	%
Total Capital Markets
Period-end loans ($ millions)	$	1,918		$	1,790		$	1,851		$	1,368		$	1,356				7	%	41	%
30+ Delinq. %		.68	%		1.45	%		2.44	%		.82	%		.99	%
NPL %		1.43			1.52			2.24			.95			.66
Charge-offs % (qtr. annualized)		1.91			3.99			.03			1.23			.86
Allowance / Loans %		3.31	%		3.56	%		2.31	%		1.78	%		1.00	%
Allowance / Charge-offs		1.94	x		.91	x		93.74	x		1.44	x		1.21	x

NM - Not meaningful

* Amount is less than one percent

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

29

ASSET QUALITY HIGHLIGHTS: KEY PORTFOLIOS - COMMERCIAL
Unaudited
C&I Portfolio: $7.8 Billion (37% 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: $1.3 Billion (6% of Total Loans)		Top 10 States
			% OS	% NPL
	- Loans to residential builders and developers	TN	22.48%	13.65%
	- Performance under pressure from housing market (oversupply and lack of mortgage availability)	FL	11.02%	48.15%
	- Most severe market conditions in Florida, California, Virginia/DC, Arizona, Maryland, and Colorado	WA	10.45%	11.84%
	- Condominium construction balances small ($171.7 million) but individual commitments tend to be larger	CA	6.69%	25.56%
	- Managing existing relationships (shrinking business into 2009)	NC	6.32%	9.10%
	- Devoting additional resources to manage problem loans	VA	4.38%	45.60%
	- Ceased originations for national CRE business in January 2008: wind-down portfolio	TX	4.08%	17.42%
		CO	3.97%	57.38%
		MD	3.57%	50.90%
		AZ	3.41%	42.23%
		As  of  12/31/08
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	42.84%	2.24%
	- Three-Fourths managed by Regional Banking segment (approx)	NC	8.68%	7.62%
	- Less than 18% in national CRE business: wind-down portfolio	FL	8.53%	30.11%
	- Performance showing spillover impact from housing market	GA	6.00%	.47%
		MS	4.03%	.28%
		WA	3.82%	1.12%
		TX	3.42%	-
		SC	2.97%	-
		AZ	2.79%	5.28%
		CA	2.09%	17.18%
		As  of  12/31/08

30

ASSET QUALITY HIGHLIGHTS: KEY PORTFOLIOS - CONSUMER
Unaudited
Consumer Real Estate (primarily Home Equity) Portfolio: $7.7 Billion (36% of Total Loans)
- Performance continues to show deterioration in Q4 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%	1.50%	.97%
- Strong borrower quality								CA	14%	2.12%	2.23%
- 735 avg. portfolio origination FICO; 732 avg. portfolio FICO (refreshed)								VA	4%	2.27%	3.73%
- Good collateral position								WA	4%	1.46%	.89%
- High LTV loans managed through whole loan insurance								MD	3%	2.07%	.52%
- 27% 1st lien and 73% second lien								FL	3%	3.58%	5.02%
- 86% of uninsured portfolio <90 CLTV								GA	3%	2.69%	1.59%
- 14% of uninsured portfolio is HLTV, 65% of which (or 9.1%) have FICO >700								AZ	2%	3.28%	5.04%
- No longer originating loans >89.9% CLTV								PA	2%	2.06%	1.96%
- Good borrower capacity (37% avg. DTI)								NJ	2%	2.02%	.29%
- Primarily retail-sourced (85% retail)								As  of  12/31/08
- Mix of older vintage loans
- 52% originated prior to 2006								Retail vs. Wholesale Originations
									% OS	Del. %	C/O %
								Retail	85.23%	1.72%	1.50%
								Wholesale	12.41%	3.84%	4.52%
								Other	2.36%	1.76%	1.50%
								As  of  12/31/08
								Portfolio Breakdown by LTV and FICO
									<=80%	80% - 90%	>90%
								>=740	31.8%	13.9%	5.2%
								720-739	7.1%	4.5%	2.0%
								700-719	7.0%	4.4%	1.9%
								660-699	7.9%	4.0%	3.2%
								620-659	2.6%	1.4%	1.3%
								<620	.8%	.3%	.4%
								*excludes whole loan insurance
								As  of  12/31/08
		Balance	Origination Characteristics					QTD	YTD
	Vintage	%	CLTV	FICO	% Broker *	% TN	% 1st lien	NCO's %	NCO's %
	pre-2002	6%	76%	717	16%	50%	37%	1.91%	2.18%
	2003	9%	73%	730	14%	38%	47%	.95%	.67%
	2004	14%	79%	729	21%	26%	29%	1.54%	1.34%
	2005	22%	80%	732	20%	20%	17%	2.31%	2.43%
	2006	18%	77%	735	6%	26%	18%	2.69%	2.54%
	2007	21%	79%	741	15%	22%	19%	1.75%	1.12%
	2008	10%	76%	749	11%	33%	53%	1.05%	.32%
	Total	100%	78%	735	15%	27%	27%	1.81%	1.48%
	* Correspondent and Wholesale
One-Time Close (OTC) Portfolio: $981 Million (5% of Total Loans)								Top 10 States
									% OS	% NPL
	- Construction-to-perm loans with short duration							CA	27%	46%
	- Performance under pressure from housing market, borrower stress							TX	11%	31%
	and lack of product salability in the secondary market							UT	11%	54%
	- Actively identifying and remediating problem accounts							ID	7%	36%
	- Devoting additional resources to manage problem loans							WA	7%	76%
	- Ceased originations for national OTC lending: wind-down portfolio							FL	6%	95%
								AZ	5%	60%
								OR	4%	21%
								VA	2%	38%
								NC	2%	30%
								As  of  12/31/08

31

ASSET QUALITY: PROCESS HIGHLIGHTS

Product                                                                                                                           Current Process

Commercial Loans (Real Estate / C&I)

Risk Grading

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

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

Watch List Process

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

Classified & Non-Accruals

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

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

Impairment Assessment

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

One-Time Close (OTC) Loans

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

Home Equity Loans & Lines

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

32

GLOSSARY OF TERMS

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

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

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

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

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

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

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

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

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.

Asset Quality - Consolidated Key Ratios

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

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

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

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

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

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

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

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

33

1

First Horizon National Corporation

Fourth Quarter 2008 Earnings

January 16, 2009

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: Fourth Quarter 2008

1Pretax, pre-provision is a non-GAAP number and is pretax income excluding provision. Pretax loss was $87mm and
provision was $280mm at 4Q08. 2Current quarter is estimate

§Earnings per share of $(0.27)

§Net loss of $(56) million

§Loan loss reserve increased to 3.99% of total loans, as provision of $280 million exceeded
$191 million in net charge-offs

§Solid financial performance with pretax, pre-provision income1 of $193 million, up from
$126 million in prior quarter

§Fourth quarter includes $34 million of favorable significant items

§Net interest margin at 2.96%, down 5bps linked quarter

§Tier I capital ratio improved to 14.9%2, TCE/TA improved to 7.3%2

§P/E tangible book value per share at $10.98

4

Significant Strategic Progress in 2008

Attractive

Growth Opportunities

Industry-Leading
Strengths

§Sources of excess liquidity estimated at $5B

Ability

To

Execute

§Tier 1 ratio improved to 14.9%1 in 4Q08

§TCE/TA improved to 7.3%1 in 4Q08

§Increased reserves/loans to 3.99% in 4Q08

§Identified inherent loss content in OTC portfolio

Exited National Lending Platforms

Bolstered Capital Position

Reduced Balance Sheet Risk

Proactive on Asset Quality

Strong Capital Position

Solid Liquidity Position

Significant Loan Loss Reserves

Strong Regional Banking Franchise

Focused Capital Markets Business

§Raised $690mm in new common equity

§Received $866mm from U.S. Treasury CPP

§Strong fixed income distribution platform

§Strategic growth of sales & trading

§Proactively identified problem loans

§Wrote non-performers down to net realizable values

§Reduced unsecured wholesale funding

§Retired $3.5 billion in maturing debt

Improved Liquidity Profile

1Current quarter is estimate

§Sold national mortgage platform outside TN

§Ceased construction/consumer lending outside
regional banking footprint

§Sold 34 First Horizon Bank branches

§Reduced total assets by $6.0B

§Reduced construction portfolios by $2.0B

§Reduced mortgage servicing by $40B ($1.1B assets)

§Strong customer and account growth

§Stable deposit base, growing since August

§27% client share / 41% share of wallet in target customer
segments

§Service: #2 JD Power ranking in satisfaction

5

Asset Quality

6

Other

52%

OTC &

National Res CRE

70%

Other

30%

2008 Net Charge-Offs

NPLs at 12/31/08

1Asset quality ratios as of 4Q08

OTC &

National Res CRE

48%

Asset Quality Overview

§Managing asset quality proactively

§Aggressive loss recognition

§Significant balance reductions in national construction portfolios

§Net charge-offs totaled $191 million, annualized 3.61% of loans1

§Reserves increased $89 million to $849 million, 3.99% of loans1

§Reserve increase driven by home equity and permanent mortgage portfolios
reflecting higher inherent losses in these portfolios

§Reserve decreases in Res CRE and OTC, as national portfolios continue to
wind-down

§NPLs increased to 4.91% of loans1

§Continued to charge-down to net realizable values vs. carrying reserve for
future loss recognition

§Inflows up slightly, offset by slightly higher resolutions at levels consistent
              with carrying values

7

Home Equity - Delinquency & Loss Trends

30+ Delinquency: National vs. Regional

30+ Delinquency: 1st vs. 2nd Liens

30+ Delinquency: Lines vs. Loans

Net-Charge Offs

*Note: 30+Delinquency exclude divested First Horizon Banks

Net Charge-Offs are annualized

2.13%

1.78%

2.22%

1.34%

2.29%

1.33%

8

§OTC balances are expected to decline throughend
of 2009

§Completed loans either pay off or are modified to
the permanent mortgage portfolio

§Reserves at 20.4% of loans

§National Res CRE balances are expected to decline
through end of 2009

§Reserves at 8.0% of loans

61%

55%

Commitments

Balances

One-Time Close

National Res CRE

National Construction Portfolios Winding-Down Rapidly

9

Income CRE Portfolio

§Traditional commercial real estate construction and
mini-permanent loans

§Balances of $2B at 4Q08

§Three-fourths managed in regional banking

§Housing market and broader economic conditionsimpacting performance of portfolio

Portfolio Characteristics

Performance

Geography1

Collateral Type1

Loan Type1

1As of 12/31/08

WA

4%

AZ

3%

CA

2%

SC

3%

TX

3%

MS

4%

GA

6%

Fl

9%

NC

9%

TN

43%

Other

14%

10

C & I Portfolio Summary

§Largely Tennessee portfolio diversified by
industry

§Balances of $7.8B at 4Q08

§Trust preferred loans of $0.5B on our balance
sheet in HTM

§Whole loans carried with ~$40mm LOCOM

§4Q08 losses impacted by weakening economic
conditions

§C&I net charge-offs at $41mm

§Ongoing, proactive reviews of portfolio and
enhanced processes illuminating individual
problem credits

Performance

Line of Business

Regional Banking

79%

Remaining

21%

11

Problem Loans - Inflows Stable, Resolutions Increasing

ORE Flows

NPL Flows1

Non-Performing Assets

1Includes Commercial & One Time Close Portfolios only             

($ mm)

2Q08

3Q08

4Q08

Beginning NPLs

$501

$722

$854

+ Additions

$365

$356

$393

+ Principal Increase

$3

$4

$7

- Payments

($36)

($75)

($82)

- Charge-Offs

($86)

($122)

($150)

- Transfer to ORE

($24)

($30)

($18)

- Upgrade to Accrual

($1)

($1)

($6)

Ending NPLs

$722

$854

$998

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

4Q07

1Q08

2Q08

3Q08

4Q08

NPLs

ORE

($ mm)

2Q08

3Q08

4Q08

Beginning ORE

$84

$106

$115

+ Additions

$35

$37

$22

- Dispositions

($13)

($28)

($33)

Ending ORE

$106

$115

$104

§Growth of NPLs similar to last quarter

§Decline in ORE due to fewer additions and
more dispositions

§NPL/ORE resolutions increased slightly to
$115 million in 4Q08

§Pricing supportive of carrying valuation

12

§4Q08 reserve increase of $89 million smallest in last five quarters

§4Q08 reserve increase drivers

§Unfavorable: Home Equity, Permanent Mortgage, C&I/Income CRE grade migration

§Favorable: OTC and Residential CRE

Pace of Reserve Growth Slowing

13

Credit Expectations and Risks Summary

2Other includes permanent mortgage, other consumer and credit card

§Prior expectations and current outlook assume weak economic conditions through 2009

§GDP contraction, rising unemployment, further home price declines

§2008 net charge-offs of $573mm in line with communicated expectation

§2009 expectations

§Charge-offs expected to be at or above 4Q08 run-rate in first half, then moderate in second half

§Reserve expected to decline as national construction portfolios wind-down

Balance

Balance

Change

Portfolio

12/31/08

12/31/08

($mm)

9/30/08

($mm)

1Q08

(Actual)

2Q08

(Actual)

3Q08

(Actual)

(Actual)

1H09

1H09

Drivers

Residential CRE

$106

$29

$30

$49

Liquidating portfolio with

significant reserves

One-Time Close

201

22

38

41

Liquidating portfolio with

significant reserves

Home Equity

182

19

36

27

Increased frequency, higher roll-

rates (unemployment rate)

Commercial

192

15

15

30

General economic weakness,

but benefit from 2008 process

Income CRE

94

10

3

1

Economic weakness impact on

retail, office, industrial

Other

2

74

4

6

7

Increased frequency,

losses above LOCOM on perm mtg.

Total

$849

$99

$128

$155

Allowance

($mm)

Net Charge-Offs

Reserves

Expected Trend

Expected Trend

Net Charge-Offs

14

Financial Results

15

Numbers may not add to total due to rounding

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

2Estimated capital ratios at 12/31/08

Consolidated Financial Results

§Solid financial performance with pretax, pre-
provision income1 of $193 million

§Includes $(34) million of significant items

§Loan loss reserve increased to 3.99% of total
loans

§Provision of $280 million exceeded $191 million
in net charge-offs

§Period-end shares increased to 206mm

§Shares have been restated for previous quarters
to reflect stock dividend

§Capital ratios improved significantly2

§TCE/TA = 7.3%

§Tier 1 = 14.9%

16

Pretax Impact

Item

($ mm)

Reinsurance reserve increase

(16.5)

Restructuring, repositioning, & efficiency related initiatives

(10.3)

Reversal of Visa liability accrual

11.0

Mortgage MSR net hedging

64.6

Mortgage Warehouse valuation adjustment

(15.0)

Significant Items: Fourth Quarter 2008

17

Consolidated Net Interest Margin

Numbers may not add to total due to rounding
1Includes divestiture balances.Mortgage I/O assets included in Trading Securities.Mortgage hedge assets included in Other

Balance Sheet Contraction Continuing, Reducing Risk

§NIM impacts in 4Q08

§Excess Fed balances (-7bps)

§Venture capital dividends (+5 bps)

§Short-term margin pressure from deposit
competition, asset sensitivity in the
Regional Bank

§Long-term, NIM should expand as lower
margin businesses reduced

18

Wholesale Funding1 Period-End Balances ($B)

Numbers may not add due to rounding

Source: First Horizon Internal Information

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

§Core deposits increased $550mm, or 4.5%, linked quarter to $12.9B

§Balance sheet reduction offsetting debt maturities

§$1.5B more retired at bank in 4Q08

§$1.0B in 2009 maturities should be covered by planned asset reductions

§Sources of excess liquidity increased to ~$5B in 4Q08

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

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

Improved Liquidity Position

19

Summary

TCE / TA

Total Capital Ratio

Tier 1 Ratio

Well-Capitalized Threshold
= 6.0%

Well-Capitalized Threshold
= 10.0%

$2,557mm

$3,933mm pretax2

Numbers may not add to total due to rounding14Q08 ratios estimated at 12/31/08

2Assumes tax rate of 35%

Excess to Well-Capitalized

$2,267mm

$3,488mm pretax2

Excess to Well-Capitalized

§Impact of $866 million TARP Capital Purchase
Program

§Preferred equity = $783 million

§Common equity (warrants) = $84 million

§Reduction in net income available to common
shareholders ~$15 million quarterly starting 1Q09

§Significant excess capital above regulatory
minimums

1

1

1

5.1

7.2

7.3

0

1

2

3

4

5

6

7

8

4Q07

3Q08

4Q08

8.1

11.1

14.9

0

2

4

6

8

10

12

14

16

4Q07

3Q08

4Q08

Capital Among Best in Industry, Significant Excess

20

TARP Capital Contributes to Investment in Core Banking
Communities

§Facilitating lending to consumers

§Originated over 2,300 new consumer loans totaling $155 million in 4Q08

§Originated over 600 mortgage loans totaling $90 million

§Facilitating lending to small businesses & commercial clients

§Originated new loans of $680 million in 4Q08

§Significant new lending relationships

§Supported customers through commitment of balance sheet

§Maintaining consistent underwriting standards

§Improving infrastructure and productivity to increase lending capacity

§Extending banking services to the community

§Opened two new branch locations in Middle Tennessee & DeSoto County, MS

21

Numbers may not add to total due to rounding

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

Segment Results: Regional Banking

§Strong linked quarter core deposit growth of
4.8%

§Targeted marketing investments

§New branches in key TN-area metros

§Customer accounts up 4% year over year

§NIM decreased by 21 bps in 4Q08

§Expenses up linked quarter

§Environment-driven costs: foreclosure, credit,
pension/benefits

§Investments in locations & people

§Retained infrastructure post-mortgage

§Pretax pre-provision income of $32mm

§Elevated provision drove pre-tax loss of
$74mm

§Proactive account management

§Commercial loan grade migration

1

22

Numbers may not add to total due to rounding1Pretax, pre-provision is a non-GAAP number

and is pretax income excluding provision

Segment Results: Capital Markets

§Pre-Tax Income of $74 million, the best quarter in
the 80-year history

§Record fixed income revenues, up $77 million
linked quarter

§Expense increase due to increase in production

§Provision decreased $30mm linked quarter

§Continued management of balance sheet usage
from trading inventory

23

§Successful execution of strategic priorities in 2008

§Exited national real estate lending platforms

§Reduced balance sheet risk

§Improved capital and liquidity

§Proactively addressed problem loans

§First Horizon well positioned to manage through challenges of 2009

§Strong capital position

§Significant loan loss reserves

§Solid liquidity position

§Solid long-term earnings power in core franchises - regional banking and capital markets

§Maintaining high quality of customer service

§Growing business with targeted client segments

§Aligning loan pricing to new market conditions

§Focused on improving efficiency

Summary

24

Appendix

25

Credit Quality

§Majority of credit deterioration observed in National Specialty Lending portfolios

§Remainder of portfolio showing some deterioration related to general economic conditions

§Substantially all of our impaired assets greater than $1mm are considered

      collateral-dependent and written-down to net realizable values (a percentage of
      appraised value, net of disposition costs)

Numbers may not add to total due to rounding

Commercial

Income

Residential

HE &

(2)

Income

Residential

HE &

(3)

30+ Delinquency

0.53%

1.32%

4.59%

1.41%

2.09%

4.43%

7.51%

3.19%

2.26%

7.09%

Dollars

$41

$22

$23

$37

$7

$43

$27

$25

$115

$79

NPL %

1.03%

2.15%

14.99%

0.00%

0.00%

43.03%

18.22%

40.97%

0.10%

3.76%

Dollars

$80

$35

$76

$0

$0

$422

$65

$319

$5

$42

4Q08 Charge-offs % (ann.)

2.21%

1.35%

10.19%

1.23%

4.04%

14.80%

8.74%

19.26%

2.10%

0.87%

4Q08 Dollars

$41

$6

$13

$8

$4

$40

$8

$41

$27

$2

Allowance

$192

$77

$44

$45

$17

$201

$17

$63

$137

$58

Allowance / Loans %

2.46%

4.72%

8.60%

1.70%

5.07%

20.44%

4.67%

8.03%

2.68%

5.14%

(1) Includes Regional Banking and Capital Markets segments

(2) Credit Card, Permanent Mortgage, and Other

(3) Permanent Mortgage and Other Consumer

Core Franchise

(1)

National Specialty

26

Portfolio Characteristics

Geographic Distribution

Core Banking
Customers

<=2004

29%

Channel Mix

Vintage Profile

1Broker includes wholesale and correspondent

As of 12/31/08

Balance

$2.1B

$5.6B

$7.7B

Original FICO

732

735

735

Original CLTV

70%

80%

78%

Full Doc

76%

69%

71%

Owner Occupied

85%

96%

93%

HELOCs

$0.7B

$3.8B

$4.5B

Weighted Avg.

HELOC Utilization

48%

57%

55%

Home Equity - Differentiated Portfolio Characteristics

27

$0

$100

$200

$300

$400

$500

$600

$700

$800

Appraised

Value

Pre-Charge

Down Balance

Cumulative

Charge Down

Book Balance

(12/31/08)

Problem Loans Written Down to Net Realizable Value

FAS 114 Charge-Downs1

FAS 114 Loan Reserves

723

606

415

32%

write-down

(191)

43% below

appraised

value

1 Approximation based on appraisals

As of 12/31/08

Reserves/

($ mm)

Reserves

Loans

Loans

FAS114 Impaired Loans w/o

Reserves

$0

$415

0.00%

FAS114 Impaired Loans w/

Reserves

$12

$59

20.80%

Other Commercial Loans

$380

$10,609

3.58%

Total

$392

$11,083

3.54%

§Generally, 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 ORE