PART I, ITEM 2. MANAGEMENT’S DISCUSSION & ANALYSIS (MD&A) Table Of Contents – InsuranceNewsNet

Item 2.   Management's Discussion and
Analysis of Financial Condition and Results of Operations

                             TABLE OF ITEM 2 TOPICS

  Introduction                                         67

  Executive Overview                                   67

  Results of Operations                                69

  Business Segment Results                             73

  Analysis of Financial Condition                      74

  Capital                                              85

  Risk Management                                      88

  Repurchase Obligations                               92

  Market Uncertainties and Prospective Trends          93

  Critical Accounting Policies                         96

  Non-GAAP Information                                 97



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Introduction

First Horizon Corporation (NYSE common stock trading symbol "FHN") is a
financial holding company headquartered in Memphis, Tennessee. FHN's principal
subsidiary, and only banking subsidiary, is First Horizon Bank. Through the Bank
and other subsidiaries, FHN offers regional banking, mortgage lending, title
insurance, specialized commercial lending, commercial leasing and equipment
financing, brokerage, wealth management, capital markets, and other financial
services to commercial, consumer, and governmental clients throughout the U.S.
At March 31, 2022, FHN had over 500

business locations in 22 states, including over 400 banking centers in 12
states, and employed more than 7,500 associates.

This MD&A should be read in conjunction with the accompanying unaudited
Consolidated Financial Statements and Notes to Consolidated Financial Statements
in Part I, Item 1, as well as other information contained in this document and
FHN's 2021 Annual Report on Form 10-K, as amended.

Executive Overview

Merger Agreement with Toronto-Dominion Bank

Allianz 2022-05 Body Leaderboard
On February 27, 2022, FHN entered into an Agreement and Plan of Merger (the "TD
Merger Agreement") with The Toronto-Dominion Bank, a Canadian chartered bank
("TD"), TD Bank US Holding Company, a Delaware corporation and indirect, wholly
owned subsidiary of TD ("TD-US"), and Falcon Holdings Acquisition Co., a
Delaware corporation and wholly owned subsidiary of TD-US ("Merger Sub").

Pursuant to the TD Merger Agreement, FHN and Merger Sub will merge (the "First
Holding Company Merger"), with FHN continuing as the surviving entity in the
merger. Following the First Holding Company Merger, at the election of TD, FHN
and TD-US will merge (the "Second Holding Company Merger" and, together with the
First Holding Company Merger, the "Holding Company Mergers"), with TD-US
continuing as the surviving entity in the merger.

Upon the terms and subject to the conditions set forth in the TD Merger
Agreement, each share of FHN common stock, par value $0.625 per share, ("Company
Common Stock"), issued and outstanding immediately prior to the effective time
of the First Holding Company Merger (the "First Effective Time") will be
converted into the right to receive $25.00 (USD) per share in cash, without
interest. If the transaction does not close on or before November 27, 2022,
shareholders will receive an additional $0.65 per share of Company Common Stock
on an annualized basis (or approximately 5.4 cents per month) for the period
from November 27, 2022 through the day immediately prior to the closing. Each
outstanding share of FHN's preferred stock, series B, C, D, E and F, will remain
issued outstanding in connection with the First Holding Company Merger. If TD
elects to effect the Second Holding Company Merger, at the effective time of the
Second Holding Company Merger, each outstanding share of FHN's preferred stock
will be converted into a share of a newly created, corresponding series of TD-US
having terms as described in the Merger Agreement.

Following the completion of the First Holding Company Merger, at such time as
determined by TD, First Horizon Bank and TD Bank, N.A., a national banking
association ("TDBNA") will merge, with TDBNA surviving as a subsidiary of TD-US
(the "Bank Merger" and together with the Holding Company Mergers, the "Proposed
TD Merger").

In connection with the TD Merger Agreement, TD purchased from FHN shares of
non-voting Perpetual Convertible Preferred Stock, Series G, a new series of
preferred stock of FHN (the "Series G Convertible Preferred Stock") in a private
placement transaction having an aggregate liquidation preference and purchase
price of approximately $494 million, pursuant to a securities purchase agreement
between FHN and TD entered into concurrently with the execution and delivery of
the TD Merger Agreement. The Series G Convertible Preferred Stock is convertible
into up to 4.9% of the outstanding shares of Company Common Stock in certain
circumstances, including the closing of the Proposed TD Merger.


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Financial Performance Summary

FHN reported first quarter 2022 net income available to common shareholders of
$187 million, or $0.34 per diluted share, compared to $219 million, or $0.40 per
diluted share, in fourth quarter 2021 and $225 million, or $0.40 per diluted
share, in first quarter 2021.

Net interest income of $479 million declined $19 million from fourth quarter
2021 driven by a $23 million reduction tied to net merger-related and PPP loan
portfolio benefits and day count, partially offset by higher investment
portfolio income, non-PPP C&I loan growth, and lower funding costs. Compared to
first quarter 2021, net interest income decreased $29 million, driven by lower
average loan and lease balances and the effect of lower interest rates and
spreads.

Provision for credit losses was a benefit of $40 million in first quarter 2022
compared to a benefit of $65 million in fourth quarter 2021 largely reflecting
the decreased impact of COVID-19, tempered by inflationary pressures and a
slower economic growth forecast. The provision benefit decreased modestly from a
benefit of $45 million in first quarter 2021.

Noninterest income of $229 million decreased $18 million compared to fourth
quarter 2021 and $69 million compared to first quarter 2021 largely driven by
declines in fixed income and mortgage banking and title fees.

Noninterest expense of $493 million decreased $35 million from fourth quarter
2021, largely reflecting decreases in other expense and personnel expense.
Compared with first quarter 2021, noninterest expense decreased $51 million
largely from a $33 million decline in merger and acquisition-related expenses.
Merger and acquisition-related expenses were $37 million for the first quarter
of 2022 compared to $38 million in fourth quarter 2021 and $70 million in first
quarter 2021.

Period-end loans and leases of $55.0 billion increased $153 million from
December 31, 2021 largely driven by commercial loan growth which was partially
offset by a $396 million decrease in PPP loans. Average loans and leases of
$54.1 billion in first quarter 2022 decreased $4.1 billion from $58.2 billion in
first quarter 2021 driven by a decline in PPP and consumer loans.

Period-end deposits of $74.1 billion decreased $781 million, or 1%, from
December 31, 2021 from a $949 million decrease in interest-bearing deposits
offset by a $168 million increase in noninterest-bearing deposits. Average
deposits increased $3.2 billion from first quarter 2021, largely reflecting
growth in noninterest-bearing deposits as a result of elevated liquidity
associated with the COVID-19 pandemic.

Tier 1 risk-based capital and total risk-based capital ratios at March 31, 2022
were 11.84% and 13.18%, an improvement from 11.04% and 12.34% at December 31,
2021, respectively. The CET1 ratio was 9.97% at March 31, 2022 compared to 9.92%
at December 31, 2021.

The following portions of this MD&A focus in more detail on the results of
operations for the three months ended March 31, 2022, the three months ended
December 31, 2021, and the three months ended March 31, 2021 and on information
about FHN's financial condition, loan and lease portfolio, liquidity, funding
sources, capital and other matters.


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Table I.2.1
                           KEY PERFORMANCE INDICATORS

                                                             As of or for the three months ended
(Dollars in millions, except per share data)   March 31, 2022          December 31, 2021         March 31, 2021
Pre-provision net revenue (a)                 $         215           $            217          $         262
Diluted earnings per common share             $        0.34           $           0.40          $        0.40
Return on average assets (b)                           0.90   %                   1.02  %                1.12  %
Return on average common equity (c)                    9.92   %                  11.26  %               12.01  %
Return on average tangible common equity (a)
(d)                                                   12.98   %                  14.72  %               15.90  %
Net interest margin (e)                                2.37   %                   2.42  %                2.62  %
Noninterest income to total revenue (f)               31.75   %                  33.10  %               37.00  %
Efficiency ratio (g)                                  70.23   %                  71.00  %               67.54  %
Allowance for loan and lease losses to total
loans and leases                                       1.13   %                   1.22  %                1.56  %
Net charge-offs (recoveries) to average loans
and leases (annualized)                                0.07   %                   0.01  %                0.06  %
Total period-end equity to period-end assets           9.81   %                   9.53  %                9.49  %
Tangible common equity to tangible assets (a)          6.44   %                   6.73  %                6.64  %
Cash dividends declared per common share      $        0.15           $           0.15          $        0.15
Book value per common share                   $       13.82           $          14.39          $       13.65
Tangible book value per common share (a)      $       10.46           $          11.00          $       10.30
Common equity Tier 1                                   9.97   %                   9.92  %                9.97  %
Market capitalization                         $      12,557           $          8,713          $       9,341


(a)  Represents a non-GAAP measure which is reconciled in the non-GAAP to GAAP
reconciliation in Table I.2.24.
(b)  Calculated using annualized net income divided by average assets.
(c)  Calculated using annualized net income available to common shareholders
divided by average common equity.
(d)  Calculated using annualized net income available to common shareholders
divided by average tangible common equity.
(e)  Net interest margin is computed using total net interest income adjusted to
an FTE basis assuming a statutory federal income tax rate of 21% and, where
applicable, state income taxes.
(f)  Ratio is noninterest income excluding securities gains (losses) to total
revenue excluding securities gains (losses).
(g)  Ratio is noninterest expense to total revenue excluding securities gains
(losses).

Results of Operations

Net Interest Income

Net interest income is FHN's largest source of revenue and is the difference
between the interest earned on interest-earning assets (generally loans, leases
and investment securities) and the interest expense incurred in connection with
interest-bearing liabilities (generally deposits and borrowed funds). The level
of net interest income is primarily a function of the difference between the
effective yield on average interest-earning assets and the effective cost of
interest-bearing liabilities. These factors are influenced by the pricing and
mix of interest-earning assets and interest-bearing liabilities which, in turn,
are impacted by external factors such as local economic conditions, competition
for loans and deposits, the monetary policy of the FRB and market interest
rates.

The following tables present the major components of net interest income and net
interest margin:


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Table I.2.2
              AVERAGE BALANCES, NET INTEREST INCOME & YIELDS/RATES
                                                                                                                                          Three Months Ended
(Dollars in millions)                                                March 31, 2022                                                       December 31, 2021                                                       March 31, 2021
                                               Average                Interest                                        Average                Interest                                       Average                Interest
                                               Balance             Income/Expense             Yield/Rate              Balance             Income/Expense             Yield/Rate             Balance             Income/Expense             Yield/Rate
Assets:
Loans and leases:
Commercial loans and leases                  $  42,444          $             339                    3.24  %       $   43,001          $             365                    3.37  %       $  45,703          $             382                    3.39  %
Consumer loans                                  11,638                        108                    3.71              11,681                        110                    3.77             12,519                        128                    4.09
Total loans and leases                          54,082                        447                    3.34              54,682                        475                    3.45             58,222                        510                    3.54
Loans held for sale                              1,156                         10                    3.51               1,252                         11                    3.49                842                          7                    3.16

Investment securities                            9,668                         38                    1.59               9,269                         33                    1.43              8,321                         29                    1.41
Trading securities                               1,594                         11                    2.75               1,551                         10                    2.50              1,418                          7                    2.03

Federal funds sold                                  81                          -                    0.19                  52                          -                    0.17                 45                          -                    0.12
Securities purchased under agreements
to resell (a)                                      672                          -                   (0.07)                598                          -                   (0.11)               554                          -                   (0.14)
Interest-bearing deposits with banks            14,902                          7                    0.19              15,065                          6                    0.15              9,269                          2                    0.10

Total earning assets / Total interest
income                                       $  82,155          $             513                    2.52  %       $   82,469          $             535                    2.58  %       $  78,671          $             555                    2.85  %

Cash and due from banks                          1,226                                                                  1,263                                                                 1,250
Goodwill and other intangible assets,
net                                              1,802                                                                  1,815                                                                 1,857

Allowance for loan and lease losses               (658)                                                                  (714)                                                                 (949)
Other assets                                     4,062                                                                  4,192                                                                 4,572
Total assets                                 $  88,587                                                             $   89,701                                                             $  85,401

Liabilities and Shareholders’ Equity:

Interest-bearing deposits:
Savings                                      $  26,330          $               3                    0.05  %       $   26,731          $               4                    0.06  %       $  27,370          $              12                    0.19  %
Other interest-bearing deposits                 16,557                          4                    0.09              15,900                          4                    0.10             15,491                          6                    0.16
Time deposits                                    3,343                          4                    0.51               3,695                          5                    0.56              4,836                          6                    0.47
Total interest-bearing deposits                 46,230                         11                    0.10              46,326                         13                    0.11             47,697                         24                    0.20
Federal funds purchased                            884                          -                    0.20                 889                          -                    0.15                996                          -                    0.10
Securities sold under agreements to
repurchase                                       1,001                          -                    0.10               1,252                          1                    0.20              1,145                          1                    0.33
Trading liabilities                                614                          2                    1.69                 556                          2                    1.38                518                          1                    0.73
Other short-term borrowings                        110                          1                    0.13                 108                          -                    0.11                139                          -                    0.08
Term borrowings                                  1,591                         17                    4.29               1,575                         17                    4.30              1,670                         18                    4.39
Total interest-bearing liabilities /
Total interest expense                       $  50,430          $              31                    0.25  %       $   50,706          $              33                    0.26  %       $  52,165          $              44                    0.34  %

Noninterest-bearing liabilities:
Noninterest-bearing deposits                    27,926                                                                 28,282                                                                23,284
Other liabilities                                1,613                                                                  1,511                                                                 1,603
Total liabilities                               79,969                                                                 80,499                                                                77,052

Shareholders' equity                             8,323                                                                  8,231                                                                 8,054
Noncontrolling interest                            295                                                                    295                                                                   295
Total shareholders' equity                       8,618                                                                  8,526                                                                 8,349
Total liabilities and shareholders'
equity                                       $  88,587                                                             $   89,025                                                             $  85,401

Net earnings assets / Net interest
income (TE) / Net interest spread            $  31,725          $             482                    2.27  %       $   31,763          $             502                    2.32  %       $  26,506          $             511                    2.51  %
Taxable equivalent adjustment                                                  (3)                   0.10                                             (4)                   0.10                                            (3)                   0.11
Net interest income / Net interest
margin (b)                                                      $             479                    2.37  %                           $             498                    2.42  %                          $             508                    2.62  %


(a) Negative yield for all periods is driven by negative market rates on reverse
repurchase agreements.
(b) Calculated using total net interest income adjusted for FTE assuming a
statutory federal income tax rate of 21% and, where applicable, state income
taxes.


First Quarter 2022 versus Fourth Quarter 2021

Net interest income of $479 million in first quarter 2022 decreased $19 million
from fourth quarter 2021 driven by a $23 million reduction tied to net
merger-related and PPP

loan portfolio benefits and day count, partially offset by higher investment
portfolio income, non-PPP C&I loan growth, and lower funding costs.

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The net interest margin of 2.37% in first quarter 2022 decreased 5 basis points
from fourth quarter 2021 primarily due to lower PPP loan-related revenues,
partially offset by higher investment portfolio yields, greater acquired loan
accretion, and lower funding costs.

Average earning assets of $82.2 billion in first quarter 2022 decreased $314
million from fourth quarter 2021 largely due to a $600 million decrease in loans
and leases, driven by a $1.0 billion decrease in loans to mortgage companies and
a $630 million decrease in average PPP loans, and a $163 million decrease in
interest-bearing cash. These decreases were partially offset by a $399 million
increase in average investment securities.


First Quarter 2022 versus First Quarter 2021

Net interest income of $479 million decreased $29 million from first quarter
2021 driven by lower average loan and lease balances and the effect of tighter
loan spreads.

First quarter 2022 net interest margin decreased 25 basis points from 2.62% in
first quarter 2021, driven by the impact of lower interest earning asset yields
from a decline in loan origination spreads and greater levels of excess cash.

Despite the decrease in average loans and leases, total average earning assets
increased $3.5 billion in first quarter 2022 from $78.7 billion in the first
quarter 2021 from higher levels of interest-bearing cash and investment
securities.

Provision for Credit Losses

The provision for credit losses includes the provision for loan and lease losses
and the provision for unfunded lending commitments. The provision for credit
losses is the expense necessary to maintain the ALLL and the accrual for
unfunded lending commitments at levels appropriate to absorb management's
estimate of credit losses expected over the life of the loan and lease portfolio
and the portfolio of unfunded loan commitments.
For the first quarter 2022, provision for credit losses was a benefit of $40
million compared to a benefit of $65 million in fourth quarter 2021, largely
reflecting the decreased impact of COVID-19, tempered by inflationary pressures
and a slower economic growth forecast. The first quarter 2022 benefit decreased
modestly from first quarter 2021.

For additional information about general asset quality trends, refer to the
Asset Quality section in this MD&A.

Noninterest Income

The following table presents the significant components of noninterest income
for each of the periods presented:

Table I.2.3

                               NONINTEREST INCOME
                                                     Three Months Ended                                      1Q22 vs. 4Q21                              1Q22 vs. 1Q21
                                                           December 31,         March 31,
(Dollars in millions)              March 31, 2022              2021                2021              $ Change              % Change             $ Change              % Change
Noninterest income:
Fixed income                      $       73              $        82          $     126          $         (9)                 (11) %       $        (53)                 (42) %
Deposit transactions and cash
management                                44                       45                 42                    (1)                  (2)                    2                    5
Brokerage, management fees
and commissions                           24                       23                 20                     1                    4                     4                   20
Mortgage banking and title
income                                    22                       28                 53                    (6)                 (21)                  (31)                 (58)
Card and digital banking
fees                                      20                       19                 17                     1                    5                     3                   18
Trust services and
investment management                     13                       12                 12                     1                    8                     1                    8
Other service charges and
fees                                      13                       11                 10                     2                   18                        3                30
Securities gains (losses),
net                                        6                        1                  -                     5                  500                     6                  100

Other income                              14                       26                 18                   (12)                 (46)                   (4)                 (22)
Total noninterest income          $      229              $       247          $     298          $        (18)                  (7) %       $        (69)                 (23) %


First Quarter 2022 versus Fourth Quarter 2021

Compared to fourth quarter 2021, noninterest income decreased $18 million, or
7%, largely reflecting lower fixed income and mortgage banking and title fees
offset by an

increase in securities gains. Noninterest income results were also impacted by
lower gains on sales of premises and equipment and SBA servicing income.

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Fixed income of $73 million decreased $9 million, driven by the impact of higher
long-term rates and macroeconomic uncertainty. Fixed income average daily
revenue of $1.0 million compared with $1.1 million in fourth quarter 2021.

Mortgage banking and title income of $22 million decreased $6 million driven by
lower origination volume given the impact of higher long-term rates,
seasonality, and a continued mix shift toward portfolio loans.

First Quarter 2022 versus First Quarter 2021

Noninterest income of $229 million for first quarter 2022 decreased $69 million,
or 23%, compared to first quarter

2021, primarily reflecting lower fixed income and mortgage banking and title
fees.

Fixed income fees of $73 million decreased $53 million from first quarter 2021.
Fixed income product revenue decreased $54 million, reflecting less favorable
market conditions, while revenue from other products increased $1 million,
largely driven by higher fees from derivative sales.

Mortgage banking and title income of $22 million decreased $31 million driven by
a shift in origination mix toward portfolio loans as well as lower spreads on
sales of mortgage loans.

Noninterest Expense

The following tables present the significant components of noninterest expense
for each of the periods presented:

Table I.2.4
                              NONINTEREST EXPENSE
                                                      Three Months Ended                                      1Q22 vs. 4Q21                              1Q22 vs. 1Q21
                                                           December 31,          March 31,
(Dollars in millions)              March 31, 2022              2021                 2021              $ Change              % Change             $
Change              % Change
Noninterest expense:
Personnel expense                 $      280              $        290          $     318          $        (10)                  (3) %       $        (38)                 (12) %
Net occupancy expense                     32                        34                 37                    (2)                  (6)                   (5)                 (14)
Computer software                         29                        29                 28                     -                    -                     1                    4
Legal and professional fees               23                        17                 14                     6                   35                     9                   64
Operations services                       20                        21                 16                    (1)                  (5)                    4                   25
Contract employment and
outsourcing                               19                        20                 14                    (1)                  (5)                       5                36
Amortization of intangible
assets                                    13                        14                 14                    (1)                  (7)                   (1)                  (7)
Equipment expense                         11                        11                 11                     -                    -                     -                    -
Advertising and public
relations                                 11                        14                  4                    (3)                 (21)                    7                  175
Communications and delivery               10                         9                  -                     1                   11                     1                   11

Other expense                             45                        69                 79                   (24)                 (35)                  (34)                 (43)
Total noninterest expense         $      493              $        528          $     544          $        (35)                  (7) %       $        (51)                  (9) %


First Quarter 2022 versus Fourth Quarter 2021

Noninterest expense of $493 million decreased $35 million, or 7%, largely
reflecting decreases in other expense and personnel expense. The decline in
other expense was primarily related to $10 million in derivative valuation
adjustments on prior Visa Class B share sales in the fourth quarter of 2021 and
lower fraud and contract termination losses. The decline in personnel expense
was largely attributable to $6 million in the fourth quarter of 2021 from
litigation tied to a company that was fully divested over ten years ago.

First Quarter 2022 versus First Quarter 2021

Noninterest expense of $493 million decreased $51 million, or 9%, from first
quarter 2021 largely reflecting a $33 million decline in merger and acquisition
expense. Results also reflect a decrease in personnel expense from lower
deferred compensation and incentive-based compensation costs.


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Income Taxes

FHN recorded income tax expense of $57 million in first quarter 2022 compared to
$53 million in fourth quarter 2021 and $71 million in first quarter 2021.

The effective tax rate was approximately 22.4%, 18.6%, and 23.2% for the three
months ended March 31, 2022, December 31, 2021 and March 31, 2021, respectively.

FHN's effective tax rate is favorably affected by recurring items such as
bank-owned life insurance, tax-exempt income, and tax credits and other tax
benefits from tax credit investments. The effective rate is unfavorably affected
by the non-deductibility of portions of: FDIC premium, executive compensation
and merger expenses. FHN's effective tax rate also may be affected by items that
may occur in any given period but are not consistent from period to period, such
as changes in unrecognized tax benefits. The rate also may be affected by items
resulting from business combinations.

A deferred tax asset or deferred tax liability is recognized for the tax
consequences of temporary differences between the financial statement carrying
amounts and

the tax bases of existing assets and liabilities. The tax consequence is
calculated by applying current enacted statutory tax rates to these temporary
differences in future years. As of March 31, 2022, FHN's gross DTA and gross DTL
were $554 million and $403 million, respectively, resulting in a net DTA of
$151 million at March 31, 2022, compared with a net DTA of $52 million at
December 31, 2021.

As of March 31, 2022, FHN had deferred tax asset balances related to federal and
state income tax carryforwards of $34 million and $2 million, respectively,
which will expire at various dates.

Based on current analysis, FHN believes that its ability to realize the DTA is
more likely than not. FHN monitors its DTA and the need for a valuation
allowance on a quarterly basis. A significant adverse change in FHN's taxable
earnings outlook could result in the need for a valuation allowance.


Business Segment Results

FHN’s reportable segments include Regional Banking, Specialty Banking and
Corporate. See Note 12 – Business Segment Information for additional disclosures
related to FHN’s segments.

Regional Banking

The Regional Banking segment generated pre-tax income of $259 million for first
quarter 2022, a decrease of $56 million compared to fourth quarter 2021, largely
driven by a $30 million decline in provision for credit losses benefit and a $21
million decline in net interest income. The lower provision benefit largely
reflects the decreased impact of COVID-19, tempered by inflationary pressures
and a slower economic growth forecast. The decline in net interest income is
reflective of a reduction in net merger-related and PPP benefits and day count.

Pre-tax income for first quarter 2022 decreased $30 million compared to
$289 million for first quarter 2021 largely driven by a $40 million increase in
noninterest expense. Noninterest expense results reflect increases in personnel
expense and other losses.

Specialty Banking

Pre-tax income in the Specialty Banking segment of $113 million for first
quarter 2022 decreased $31 million compared to fourth quarter 2021, largely
driven by lower revenue. Net interest income of $141 million decreased $11
million
from fourth quarter 2021. Fixed income of $73 million decreased $9
million
, driven by the impact of higher long-term rates and macroeconomic
uncertainty. Mortgage banking and title income of $22 million

decreased $6 million driven by lower origination volume given the impact of
higher long-term rates, seasonality, and a continued mix shift toward portfolio
loans.

Pre-tax income of $113 million in the Specialty Banking segment decreased
$82 million for first quarter 2022 compared to first quarter 2021 largely driven
by lower revenue partially offset by lower noninterest expense. The decline in
revenue was primarily attributable to declines in fixed income and mortgage
banking and title fees.

Corporate

Pre-tax loss for the Corporate segment was $117 million for first quarter 2022
compared to $177 million for fourth quarter 2021, largely reflecting a $44
million decrease in noninterest expense. Merger and acquisition-related expenses
were relatively consistent with the prior quarter.

Pre-tax loss in the Corporate segment decreased $60 million compared to $177
million for first quarter 2021, largely the result of a $73 million decrease in
noninterest expense tied to lower merger and acquisition-related expenses of $33
million. Results also reflect lower deferred compensation expense and the impact
of derivative valuation adjustments on prior Visa Class-B share sales in first
quarter 2021.

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Analysis of Financial Condition

Total period-end assets were $88.7 billion as of March 31, 2022 compared to
$89.1 billion at December 31, 2021. The decrease in total assets during 2022 was
driven by a $1.3 billion decrease in cash and due from banks from lower customer
deposits, offset primarily by a $524 million increase in investment securities
and a $153 million increase in loans and leases.

Earning assets consist of loans and leases, loans held for sale, investment
securities, and other earning assets, such as trading securities and
interest-bearing deposits with banks. A detailed discussion of the major
components of earning assets is provided in the following sections.

Loans and Leases

Period-end loans and leases increased $153 million to $55.0 billion as of
March 31, 2022 from $54.9 billion on December 31, 2021, driven by a $108 million
increase in commercial loans and leases driven by CRE loan growth and a $45
million increase in consumer loans. Total loan growth was tempered by a $397
million decrease in PPP loans. Average loans and leases decreased to $54.1
billion

in first quarter 2022 compared to $54.7 billion in fourth quarter 2021 and $58.2
billion in first quarter 2021 primarily from a decline in PPP loans and credit
card and other non-real estate consumer loans.

The following table provides detail regarding FHN’s loans and leases as of
March 31, 2022 and December 31, 2021.


Table I.2.5
                                 LOANS & LEASES
                                                     As of March 31, 2022                               As of December 31, 2021
(Dollars in millions)                       Amount               Percent of total               Amount               Percent of total               Growth Rate
Commercial:
Commercial, financial, and
industrial (a)                           $   30,798                              56  %       $   31,068                              57  %                    (1) %
Commercial real estate                       12,487                              23              12,109                              22                        3
Total commercial                             43,285                              79              43,177                              79                        -
Consumer:
Consumer real estate                         10,874                              20              10,772                              20                        1
Credit card and other                           853                               1                 910                               1                       (6)
Total consumer                               11,727                              21              11,682                              21                        -
Total loans and leases                   $   55,012                             100  %       $   54,859                             100  %                     -  %

(a)Includes equipment financing loans and leases.


C&I loans are the largest component of the loan portfolio, comprising 56% of
total loans at the end of the first quarter 2022 and 57% at year-end 2021. C&I
loans decreased 1% from December 31, 2021, largely driven by a decrease in PPP
loans. Commercial real estate loans increased $378 million in first quarter 2022
driven by growth in both Regional Banking and Specialty Banking loans.

Consumer loans of $11.7 billion increased $45 million from year-end 2021,
largely driven by growth in real estate installment loans, primarily within the
Regional Banking segment.

Loans Held for Sale

In 2020, FHN obtained IBKC’s mortgage banking operations which includes
origination and servicing of residential first lien mortgages that conform to
standards

established by GSEs that are major investors in U.S. home mortgages but can also
consist of junior lien and jumbo loans secured by residential property. These
loans are primarily sold to private companies that are unaffiliated with the
GSEs on a servicing-released basis. For further detail, see Note 5 - Mortgage
Banking Activity.

The legacy FHN loans HFS portfolio consists of small business, other consumer
loans, mortgage warehouse, USDA, student, and home equity loans.

On March 31, 2022 and December 31, 2021, loans HFS were $1.0 billion and $1.2
billion
, respectively. Held-for-sale consumer mortgage loans secured by
residential real estate in process of foreclosure totaled $5 million at
March 31, 2022 and $2 million at December 31, 2021.

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Asset Quality

Loan and Lease Portfolio Composition

FHN groups its loans into portfolio segments based on internal classifications
reflecting the manner in which the ALLL is established and how credit risk is
measured, monitored, and reported. From time to time, and if conditions are such
that certain subsegments are uniquely affected by economic or market conditions
or are experiencing greater deterioration than other components of the loan
portfolio, management may determine the ALLL at a more granular level.
Commercial loans and leases are composed of C&I loans and leases and CRE loans.
Consumer loans are composed of consumer real estate loans and credit card and
other loans. FHN has a concentration of residential real estate loans (20% of
total loans at both March 31, 2022 and

December 31, 2021). Industry concentrations are discussed under the C&I heading
below.

Credit underwriting guidelines are outlined in Item 7 of FHN's Annual Report on
Form 10-K, as amended, for the year ended December 31, 2021 in the Asset Quality
Section within the Analysis of Financial Condition discussion. FHN's credit
underwriting guidelines and loan product offerings as of March 31, 2022 are
generally consistent with those reported and disclosed in FHN's Form 10-K, as
amended, for the year ended December 31, 2021.


Commercial Loan and Lease Portfolios

C&I

The C&I portfolio totaled $30.8 billion as of March 31, 2022 and $31.1 billion
as of December 31, 2021 and is comprised of loans and leases used for general
business purposes. Products offered in the C&I portfolio include term loan
financing of owner-occupied real estate and fixed assets, PPP loans, direct
financing and sales-type leases, working capital lines of credit, and trade
credit enhancement through letters of credit.

The decrease in C&I loans from December 31, 2021 was driven by a $396 million
decrease in PPP loans. Excluding PPP loans, C&I loan growth was $126 million.
The largest geographical concentrations of balances in the C&I

portfolio as of March 31, 2022 were in Tennessee (21%), Florida (12%), Texas
(10%), North Carolina (7%), Louisiana (7%), California (7%), and Georgia (5%).
No other state represented more than 5% of the portfolio.

The following table provides the composition of the C&I portfolio by industry as
of March 31, 2022, and December 31, 2021. For purposes of this disclosure,
industries are determined based on the North American Industry Classification
System (NAICS) industry codes used by Federal statistical agencies in
classifying business establishments for the collection, analysis, and
publication of statistical data related to the U.S. business economy.


Table I.2.6

                           C&I PORTFOLIO BY INDUSTRY
                                                                      March 31, 2022                              December 31, 2021
(Dollars in millions)                                           Amount               Percent                 Amount                 Percent
Industry:
Loans to mortgage companies                                $       3,895                   13  %       $          4,518                   15  %
Finance and insurance                                              3,580                   11                     3,483                   11
Real estate rental and leasing (a)                                 2,704                    9                     2,771                    9
Health care and social assistance                                  2,371                    8                     2,413                    8

Accommodation and food service                                     2,144                    7                     2,221                    7

Manufacturing                                                      2,064                    7                     1,950                    6
Wholesale trade                                                    1,956                    6                     1,845                    6

Retail trade                                                       1,603                    5                     1,532                    5
Energy                                                             1,335                    4                     1,325                    4

Other (professional, construction, transportation,
etc.) (b)                                                          9,146                   30                     9,010                   29
Total C&I loan portfolio                                   $      30,798                  100  %       $         31,068                  100  %

(a)Leasing, rental of real estate, equipment, and goods.
(b)Industries in this category each comprise less than 5% as of March 31, 2022.

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Industry Concentrations

Loan concentrations exist when there are loans to numerous borrowers engaged in
similar activities that would cause them to be similarly impacted by economic or
other conditions. Loans to mortgage companies and borrowers in the finance and
insurance industry were 24% and 26% of FHN's C&I loan portfolio as of March 31,
2022 and December 31, 2021, respectively, and as a result could be affected by
items that uniquely impact the financial services industry. As of March 31,
2022, FHN did not have any other concentrations of C&I loans in any single
industry of 10% or more of total loans.

Loans to Mortgage Companies

Loans to mortgage companies were 13% of the C&I portfolio as of March 31, 2022
and 15% as of December 31, 2021. This portfolio generally fluctuates with
mortgage rates and seasonal factors and includes commercial lines of credit to
qualified mortgage companies primarily for the temporary warehousing of eligible
mortgage loans prior to the borrower's sale of those mortgage loans to third
party investors. Generally, new loan originations to mortgage lenders increases
when there is a decline in mortgage rates and decreases when rates rise. In
periods of economic uncertainty, this trend may not occur even if interest rates
are declining. In first quarter 2022, 58% of the loan originations were home
purchases and 42% were refinance transactions.

Finance and Insurance

The finance and insurance component represented 11% of the C&I portfolio as of
both March 31, 2022 and December 31, 2021, and includes TRUPs (i.e., long-term
unsecured loans to bank and insurance-related businesses), loans to bank holding
companies, and asset-based lending to consumer finance companies. As of
March 31, 2022, asset-based lending to consumer finance companies represents
approximately $1.5 billion of the finance and insurance component.

Paycheck Protection Program

In 2020, Congress created the Paycheck Protection Program (PPP) in response to
the economic disruption associated with the COVID-19 pandemic. Under the PPP,

qualifying businesses may receive loans from private lenders, such as FHN, that
are fully guaranteed by the Small Business Administration. These loans
potentially are partly or fully forgivable, depending upon the borrower's use of
the funds and maintenance of employment levels. To the extent forgiven, the
borrower is relieved from payment while the lender is still paid from the
program.

The C&I portfolio as of March 31, 2022 includes 5,184 loans made under the PPP
with an aggregate principal balance of $642 million, which are fully government
guaranteed with the SBA. Due to the government guarantee and forgiveness
provisions, PPP loans are considered to have no credit risk and do not affect
the amount of provision and ALLL recorded. As a result, no ALLL is recorded for
PPP loans as of March 31, 2022, and FHN has assigned a risk weight of zero to
PPP loans for regulatory capital purposes.

For these loans, there are remaining net lender fees of approximately $7 million
to be paid to FHN as of March 31, 2022. During 2022, FHN continues to work with
its clients that have applied for and received PPP loan forgiveness. Through
March 31, 2022, approximately $5 billion of the original $6 billion in PPP loans
originated by FHN and IBERIABANK prior to acquisition have been forgiven by the
SBA.

Commercial Real Estate

The CRE portfolio totaled $12.5 billion as of March 31, 2022 and $12.1 billion
as of December 31, 2021. The CRE portfolio reflects financings for both
commercial construction and nonconstruction loans. The largest geographical
concentrations of CRE loan balances as of March 31, 2022 were in Florida (26%),
North Carolina (11%), Texas (11%), Louisiana (10%), Georgia (10%), and Tennessee
(9%). No other state represented more than 5% of the portfolio. This portfolio
contains loans, draws on lines, and letters of credit to commercial real estate
developers for the construction and mini-permanent financing of income-producing
real estate. Subcategories of the CRE portfolio consist of multi-family (26%),
office (23%), retail (19%), industrial (12%), hospitality (11%), land/land
development (2%), and other (7%).

Consumer Loan Portfolios

Consumer Real Estate

The consumer real estate portfolio totaled $10.9 billion and $10.8 billion as of
March 31, 2022 and December 31, 2021, respectively, and is primarily composed of
home equity lines and installment loans. The largest geographical concentrations
of balances as of March 31, 2022 were in Florida (31%), Tennessee (23%),
Louisiana (9%), North Carolina (8%), Texas (7%), and New York (5%). No other
state represented more than 5% of the portfolio.

As of March 31, 2022, approximately 88% of the consumer real estate portfolio
was in a first lien position. At origination, the weighted average FICO score of
this portfolio was 755 and the refreshed FICO scores also averaged 755 as of
March 31, 2022, no significant change from FICO scores of 755 and 754,
respectively, as of December 31, 2021. Generally, performance of this portfolio
is affected by life events that affect borrowers' finances, the level of
unemployment, and home prices.

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As of March 31, 2022 and December 31, 2021, FHN had held-for-investment consumer
mortgage loans secured by real estate that were in the process of foreclosure
totaling $26 million and $20 million, respectively.

HELOCs comprised $1.9 billion and $2.0 billion of the consumer real estate
portfolio as of March 31, 2022 and December 31, 2021, respectively. FHN's HELOCs
typically have a 5 or 10 year draw period followed by a 10 or 20 year repayment
period, respectively. During the draw period, a borrower is able to draw on the
line and is only required to make interest payments. The line is frozen if a
borrower becomes past due on payments. Once the draw period has ended, the line
is closed and the borrower is required to make both principal and interest
payments monthly until the loan matures. The principal payment generally is
fully amortizing, but payment amounts will adjust when variable rates reset to
reflect changes in the prime rate.

As of March 31, 2022, approximately 89% of FHN's HELOCs were in the draw period
compared to 88% at December 31, 2021. It is expected that $432 million, or 25%,
of HELOCs currently in the draw period will enter the repayment period during
the next 60 months, based on current terms. Generally, delinquencies for HELOCs
that have entered the repayment period are initially higher than HELOCs still in
the draw period because of the increased minimum payment requirement. However,
over time, performance of these loans usually begins to stabilize. HELOCs
nearing the end of the draw period are closely monitored.

The following table presents HELOCs currently in the draw period, broken down by
months remaining in the draw period.

Table I.2.7
                        HELOC DRAW TO REPAYMENT SCHEDULE

                                             March 31, 2022                  December 31, 2021
                                         Repayment                        Repayment
(Dollars in millions)                     Amount          Percent           Amount           Percent
Months remaining in draw period:
0-12                                  $          38           2  %    $             43           2  %
13-24                                            41           2                     42           2
25-36                                            57           3                     50           3
37-48                                           132           8                    136           8
49-60                                           164          10                    160           9
>60                                           1,272          75                  1,324          76
Total                                 $       1,704         100  %    $          1,755         100  %



Credit Card and Other

The credit card and other portfolio, which is primarily within the Regional
Banking segment, totaled $853 million as of March 31, 2022 and $910 million as
of December 31, 2021. This portfolio primarily consists of consumer-related

credits, including home equity and other personal consumer loans, credit card
receivables, and automobile loans. The $57 million decrease was driven by net
repayments of automobile loans, consumer construction loans, and credit cards.

Allowance for Credit Losses

The ACL is maintained at a level sufficient to provide appropriate reserves to
absorb estimated future credit losses in accordance with GAAP. For additional
information regarding the ACL, see Note 4 of this Report and "Critical
Accounting Policies and Estimates" and Note 5 in FHN's 2021 Form 10-K, as
amended.

The ALLL decreased to $622 million as of March 31, 2022 from $670 million as of
December 31, 2021, largely

reflecting a continued decrease in the unfavorable impact of COVID-19 on the
macroeconomic forecast. The ALLL to total loans and leases ratio decreased 9
basis points to 1.13%. The ACL to total loans and leases ratio decreased to
1.25% as of March 31, 2022 from 1.34% as of December 31, 2021.



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Consolidated Net Charge-offs

Net charge-offs in first quarter 2022 were $10 million, or an annualized 7 basis
points of total loans and leases, compared to net charge-offs of $8 million, or
6 basis points of total loans and leases, in first quarter 2021.

Net charge-offs in the commercial portfolio in first quarter 2022 were $10
million
and $11 million in first quarter

2021. Net recoveries in the consumer portfolio were minimal in first quarter
2022 compared to $3 million in net recoveries in first quarter 2021. The
decrease in net recoveries from the prior year was attributable to higher gross
credit card charge-offs and lower gross consumer real estate recoveries.


Table I.2.8

            ANALYSIS OF ALLOWANCE FOR CREDIT LOSSES AND CHARGE-OFFS
(Dollars in millions)                                           March 31, 2022                December 31, 2021         March 31, 2021

Allowance for loan and lease losses

                     C&I                                       $          287                $            334          $          442
                     CRE                                                  151                             154                     232
                     Consumer real estate                                 164                             163                     222
                     Credit card and other                                 20                              19                      18
                     Total allowance for loan and lease
                     losses                                    $          622                $            670          $          914

Reserve for remaining unfunded commitments

                     C&I                                       $           43                $             46          $           62
                     CRE                                                   12                              12                      11
                     Consumer real estate                                   9                               8                       8
                     Credit card and other                                  -                               -                       -
                     Total reserve for unfunded lending
                     commitments                               $           64                $             66          $           81

Allowance for credit losses
                     C&I                                       $          330                $            380          $          504
                     CRE                                                  163                             166                     243
                     Consumer real estate                                 173                             171                     230
                     Credit card and other                                 20                              19                      18
                     Total allowance for credit losses         $          686                $            736          $          995

Period-end loans and leases
                     C&I                                       $       30,798                $         31,068          $       33,951
                     CRE                                               12,487                          12,109                  12,470
                     Consumer real estate                              10,874                          10,772                  11,053
                     Credit card and other                                853                             910                   1,126
                     Total period-end loans and leases         $       55,012                $         54,859          $       58,600

ALLL / loans and leases %
                     C&I                                                 0.93  %                         1.07  %                 1.30  %
                     CRE                                                 1.21                            1.27                    1.86
                     Consumer real estate                                1.51                            1.51                    2.00
                     Credit card and other                               2.31                            2.14                    1.63
                     Total ALLL / loans and leases %                     1.13  %                         1.22  %                 1.56  %

ACL / loans and leases %
                     C&I                                                 1.07  %                         1.22  %                 1.48  %
                     CRE                                                 1.31                            1.37                    1.95
                     Consumer real estate                                1.59                            1.59                    2.08
                     Credit card and other                               2.31                            2.09                    1.63
                     Total ACL / loans and leases %                      1.25  %                         1.34  %                 1.70  %


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Quarter-to-date net charge-offs (recoveries)

                           C&I                                      $          10                $           1          $          10
                           CRE                                                  -                            -                      1
                           Consumer real estate                                (4)                          (3)                    (5)
                           Credit card and other                                4                            3                      2
                           Total net charge-offs (recoveries)       $          10                $           1          $           8

Average loans and leases
                           C&I                                      $      30,215                $      30,780          $      33,279
                           CRE                                             12,229                       12,221                 12,424
                           Consumer real estate                            10,769                       10,738                 11,400
                           Credit card and other                              869                          943                  1,119
                           Total average loans and leases           $      54,082                $      54,682          $      58,222

Charge-off % (annualized)
                           C&I                                               0.13  %                      0.01  %                0.12  %
                           CRE                                                    NM                           NM                0.06
                           Consumer real estate                                   NM                           NM                     NM
                           Credit card and other                             1.85                         1.26                   0.65
                           Total charge-off %                                0.07  %                      0.01  %                0.06  %

ALLL / annualized net charge-offs

                           C&I                                                713  %                     7,238  %               1,147  %
                           CRE                                                    NM                           NM               3,331
                           Consumer real estate                                   NM                           NM                     NM
                           Credit card and other                              123                          164                    253
                           Total ALLL / net charge-offs                     1,595  %                    17,374  %               2,814  %


NM - not meaningful

Nonperforming Assets

Nonperforming loans are loans placed on nonaccrual if it becomes evident that
full collection of principal and interest is at risk, if impairment has been
recognized as a partial charge-off of principal balance due to insufficient
collateral value and past due status, or (on a case-by-case basis) if FHN
continues to receive payments but there are other borrower-specific issues.
Included in nonaccruals are loans for which FHN continues to receive payments,
including residential real estate loans where the borrower has been discharged
of personal obligation through bankruptcy. NPAs consist of nonperforming loans
and OREO (excluding OREO from government insured mortgages).

Total NPAs (including NPLs HFS) increased to $343 million as of March 31, 2022
from $285 million as of December 31, 2021, driven by higher nonaccrual loans in
the C&I and consumer real estate portfolios. The nonperforming loans and leases
ratio increased 10 basis points to 0.60% as of March 31, 2022.

Certain nonperforming loans in both the commercial and consumer portfolios are
deemed collateral-dependent and are charged down to an estimate of collateral
value less costs to sell. Because the estimated loss has been recognized through
a partial charge-off, typically an ALLL is not recorded.


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Table I.2.9

NONACCRUAL/NONPERFORMING LOANS, FORECLOSED ASSETS, & OTHER DISCLOSURES
(Dollars in millions)

Nonperforming loans and leases                                               March 31, 2022                  December 31, 2021
                  C&I                                                     $             153                $             125
                  CRE                                                                    11                                9
                  Consumer real estate                                                  165                              138
                  Credit card and other                                                   3                                3
                  Total nonperforming loans and leases (a)                $             332                $             275

Nonperforming loans held for sale (a)                                     $               8                $               7
Foreclosed real estate and other assets (b)                                               3                                3
                  Total nonperforming assets (a) (b)                      $             343                $             285

Nonperforming loans and leases to total loans and leases

                  C&I                                                                  0.50  %                          0.40    %
                  CRE                                                                  0.09                             0.08
                  Consumer real estate                                                 1.52                             1.29
                  Credit card and other                                                0.32                             0.31
                  Total NPL %                                                          0.60  %                          0.50    %

ALLL / NPLs
                  C&I                                                                   188  %                           268    %
                  CRE                                                                 1,303                            1,671
                  Consumer real estate                                                   99                              118
                  Credit card and other                                                 730                              699
                  Total ALLL / NPLs                                                     187  %                           244    %


(a)Excludes loans and leases that are 90 or more days past due and still
accruing interest.
(b)Balances do not include government-insured foreclosed real estate. Foreclosed
real estate from GNMA loans totaled $1 million as of both March 31, 2022 and
December 31, 2021.



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The following table provides nonperforming assets by business segment:

Table I.2.10

                        NONPERFORMING ASSETS BY SEGMENT
(Dollars in millions)
Nonperforming loans and leases (a) (b)                                        March 31, 2022                  December 31, 2021
            Regional Banking                                                $            219                $            163
            Specialty Banking                                                             77                              78
            Corporate                                                                     36                              34
            Consolidated                                                    $            332                $            275

Foreclosed real estate (c)

            Regional Banking                                                $              1                $              2
            Specialty Banking                                                              1                               -
            Corporate                                                                      1                               1
            Consolidated                                                    $              3                $              3

Nonperforming Assets (a) (b) (c)

            Regional Banking                                                $            220                $            165
            Specialty Banking                                                             78                              78
            Corporate                                                                     37                              35
            Consolidated                                                    $            335                $            278

Nonperforming loans and leases to loans and leases

            Regional Banking                                                            0.57  %                         0.43    %
            Specialty Banking                                                           0.48                            0.48
            Corporate                                                                   6.25                            5.39
            Consolidated                                                                0.60  %                         0.50    %
NPA % (d)
            Regional Banking                                                            0.57  %                         0.44    %
            Specialty Banking                                                           0.48                            0.48
            Corporate                                                                   6.39                            5.51
            Consolidated                                                                0.61  %                         0.51    %


(a)Excludes loans and leases that are 90 or more days past due and still
accruing interest.
(b)Excludes loans classified as held for sale.
(c)Excludes foreclosed real estate and receivables related to government insured
mortgages of $1 million as of both March 31, 2022 and December 31, 2021.
(d)Ratio is non-performing assets to total loans and leases plus foreclosed real
estate.


Lending Assistance for Borrowers

In addition to PPP loans, other customer support initiatives in response to the
COVID-19 pandemic include incremental lending assistance for borrowers through
delayed payment programs and fee waivers.

The following table provides the UPB of loans related to deferrals granted to
FHN’s customers as of March 31, 2022 and December 31, 2021.

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Table I.2.11

                               CUSTOMER DEFERRALS
   (Dollars in millions)                As of March 31, 2022      As of December 31, 2021
   Commercial:
   C&I                                 $                  -      $                      9

   CRE                                                    5                            26
   Total Commercial                    $                  5      $                     35
   Consumer:
   HELOC                               $                  6      $                      5
   Real estate installment loans                         27                            44
   Credit card and other                                  -                             -
   Total Consumer                      $                 33      $                     49
   Total                               $                 38      $                     84


To the extent that loans were past due as of March 31, 2022 or December 31, 2021
and had been granted a deferral, they were excluded from loans past due 30 to 89

days and loans past due 90 days or more in the table and discussion below.

Past Due Loans and Potential Problem Assets

Past due loans are loans contractually past due as to interest or principal
payments, but which have not yet been put on nonaccrual status. Loans 90 days or
more past due and still accruing were $23 million as of March 31, 2022 compared
to $40 million as of December 31, 2021. Loans 30 to 89 days past due were $180
million as of March 31, 2022 compared to $108

million as of December 31, 2021. The increase included a $36 million increase in
CRE loans, a $19 million increase in C&I loans, and a $14 million increase in
consumer real estate loans past due 30 to 89 days. These increases were
partially driven by the expiration of certain deferred payment programs noted
above.

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Table I.2.12

               ACCRUING DELINQUENCIES & OTHER CREDIT DISCLOSURES
(Dollars in millions)
Accruing loans and leases 30+ days past due                  March 31, 2022                  December 31, 2021
         C&I                                              $              78                $              58
         CRE                                                             49                               13
         Consumer real estate                                            65                               70
         Credit card and other                                           11                                7
         Total accruing loans and leases 30+ days past
         due                                              $             203                $             148

Accruing loans and leases 30+ days past due %

         C&I                                                           0.25  %                          0.19    %
         CRE                                                           0.39                             0.11
         Consumer real estate                                          0.60                             0.65
         Credit card and other                                         1.23                             0.76
         Total accruing loans and leases 30+ days past
         due %                                                         0.37  %                          0.27    %

Accruing loans and leases 90+ days past due (a) (b) (c):

         C&I                                              $               6                $               5
         CRE                                                              -                                -

         Consumer real Estate                                            14                               33
         Credit card and other                                            3                                2

         Total accruing loans and leases 90+ days past
         due                                              $              23                $              40

Loans held for sale
30 to 89 days past due                                    $              10                $               7
30 to 89 days past due - guaranteed portion (d)                           7                                2
90+ days past due                                                        22                               24
90+ days past due - guaranteed portion (d)                               11                               12


(a)Excludes loans classified as held for sale.
(b)Amounts are not included in nonperforming/nonaccrual loans.
(c)Amounts are also included in accruing loans and leases 30+ days past due.
(d)Guaranteed loans include FHA, VA, and GNMA loans repurchased through the GNMA
buyout program.

Potential problem assets represent those assets where information about possible
credit problems of borrowers has caused management to have serious doubts about
the borrower's ability to comply with present repayment terms and includes loans
past due 90 days or more and still accruing. This definition is believed to be
substantially consistent with the standards established by Federal banking
regulators for

loans classified as substandard. Potential problem assets in the loan portfolio
were $542 million on March 31, 2022 and $597 million on December 31, 2021. The
current expectation of losses from potential problem assets has been included in
management's analysis for assessing the adequacy of the allowance for loan and
lease losses.

Troubled Debt Restructurings and Loan Modifications

As part of FHN's ongoing risk management practices, FHN attempts to work with
borrowers when appropriate to extend or modify loan terms to better align with
their

current ability to repay. Extensions and modifications to loans are made in
accordance with internal policies and guidelines which conform to regulatory
guidance. Each occurrence is unique to the borrower and is evaluated

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separately. In a situation where an economic concession has been granted to a
borrower that is experiencing financial difficulty, FHN identifies and reports
that loan as a TDR.

For loan modifications that met the TDR relief provisions outlined in either the
CARES Act, as extended by the CAA, or revised Interagency Guidance, FHN has
excluded these modifications from consideration as a TDR and has excluded loans
with these qualifying modifications from designation as a TDR in the information
and discussion that follows. See Note 3 - Loans and Leases for further
discussion regarding TDRs and loan modifications.

On both March 31, 2022 and December 31, 2021, FHN had $206 million portfolio
loans classified as held-for-investment TDRs. For these TDRs, including specific
reserves, FHN had an allowance for loan and lease losses of $14 million, or 7%
of TDR balances as of March 31, 2022, and $12 million, or 6% of TDR balances, as
of December 31, 2021. Additionally, FHN had $33 million and $35 million of HFS
loans classified as TDRs as of March 31, 2022 and December 31, 2021,
respectively.

The following table provides a summary of TDRs for the periods ended March 31,
2022
and December 31, 2021:

Table I.2.13

                         TROUBLED DEBT RESTRUCTURINGS

      (Dollars in millions)                     March 31, 2022             December 31, 2021
      Held for investment:
        Commercial loans:
         Current                               $            47            $               53
         Delinquent                                          1                             -
         Non-accrual                                        31                            35
        Total commercial loans                 $            79            $               88
        Consumer real estate:
         Current                               $            69            $               60
         Delinquent                                          2                             4
         Non-accrual (a)                                    56                            53
        Total consumer real estate             $           127            $              117
        Credit card and other:
         Current                               $             -            $                1
         Delinquent                                          -                             -
         Non-accrual                                         -                             -
        Total credit card and other                          -                             1

      Total held for investment                $           206            $              206

      Held for sale:
         Current                               $            25            $               27
         Delinquent                                          7                             7
         Non-accrual                                         1                             1
      Total held for sale                                   33                            35
      Total troubled debt restructurings       $           239            $              241

(a) Balances as of March 31, 2022 and December 31, 2021 include $12 million of
discharged bankruptcies for both periods.

Investment Securities

FHN's investment securities portfolio consists principally of debt securities
available for sale. FHN maintains a highly-rated securities portfolio consisting
primarily of government agency issued mortgage-backed securities

and collateralized mortgage obligations. The securities portfolio provides a
source of income and liquidity and is an important tool used to balance the
interest rate risk of the loan and deposit portfolios. The securities portfolio
is

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periodically evaluated in light of established ALM objectives, changing market
conditions that could affect the profitability of the portfolio, the regulatory
environment, and the level of interest rate risk to which FHN is exposed. These
evaluations may result in steps taken to adjust the overall balance sheet
positioning.

Investment securities were $9.9 billion and $9.4 billion on March 31, 2022 and
December 31, 2021, representing approximately 11% of total assets at the end of
both periods. See Note 2 - Investment Securities for more information about the
securities portfolio.

Deposits

Total deposits of $74.1 billion as of March 31, 2022 decreased $781 million from
December 31, 2021 reflecting an improvement in deposit mix during the quarter.
Interest-bearing deposits decreased $949 million while noninterest-bearing
deposits increased $168 million.


See Table I.2.2 - Average Balances, Net Interest Income and Yields/Rates in this
Report for information on average deposits including average rates paid. The
following table summarizes the major components of deposits as of March 31, 2022
and December 31, 2021.

Table I.2.14

                                    DEPOSITS
                                                               March 31, 2022                                         December 31, 2021
(Dollars in millions)                              Amount                Percent of total                  Amount                   Percent of total              Change            Percent
Savings                                       $      25,772                              35  %       $         26,457                               35  %       $  (685)                  (3) %
Time deposits                                         3,165                               4                     3,500                                5             (335)                 (10)
Other interest-bearing deposits                      17,126                              23                    17,055                               23               71                    -

Total interest-bearing deposits                      46,063                              62                    47,012                               63             (949)                  (2)
Noninterest-bearing deposits                         28,051                              38                    27,883                               37              168                    1
Total deposits                                $      74,114                             100  %       $         74,895                              100  %       $  (781)                  (1) %




Short-Term Borrowings

Short-term borrowings include federal funds purchased, securities sold under
agreements to repurchase, trading liabilities, and other short-term borrowings.
Total short-term borrowings were $2.2 billion and $2.6 billion as of March 31,
2022 and December 31, 2021, respectively.

Short-term borrowings balances fluctuate largely based on the level of FHLB
borrowing as a result of loan demand, deposit levels and balance sheet funding
strategies. Trading liabilities fluctuate based on various factors,

including levels of trading securities and hedging strategies. Federal funds
purchased fluctuates depending on the amount of excess funding of FHN's
correspondent bank customers. Balances of securities sold under agreements to
repurchase fluctuate based on cost attractiveness relative to FHLB borrowing
levels and the ability to pledge securities toward such transactions.


Term Borrowings

Term borrowings include senior and subordinated borrowings with original
maturities greater than one year.

Total term borrowings were $1.6 billion as of March 31, 2022 and December 31,
2021
.

Capital

Management's objectives are to provide capital sufficient to cover the risks
inherent in FHN's businesses, to maintain excess capital to well-capitalized
standards, and to assure ready access to the capital markets. Total equity was
$8.7 billion at March 31, 2022 and $8.5 billion at December 31, 2021.
Significant changes included net income of $198 million and the issuance of $494
million in Series G preferred stock, which were offset by $90 million

in common and preferred dividends and a decrease in AOCI of $424 million.

The following tables provide a reconciliation of shareholders' equity from the
Consolidated Balance Sheets to Common Equity Tier 1, Tier 1 and Total Regulatory
Capital as well as certain selected capital ratios:

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Table I.2.15
                            REGULATORY CAPITAL DATA

(Dollars in millions)                                              March 31, 2022           December 31, 2021
Shareholders' equity                                             $         8,401          $            8,199
Modified CECL transitional amount (a)                                         85                         114
FHN non-cumulative perpetual preferred                                    (1,014)                       (520)
Common equity tier 1 before regulatory adjustments               $         7,472          $            7,793
Regulatory adjustments:
Disallowed goodwill and other intangibles                                 (1,698)                     (1,711)

Net unrealized (gains) losses on securities available for
sale

                                                                         440                          36

Net unrealized (gains) losses on pension and other
postretirement plans

                                                         253                         255
Net unrealized (gains) losses on cash flow hedges                             18                          (3)
Disallowed deferred tax assets                                                 -                          (2)
Other deductions from common equity tier 1                                    (1)                         (1)
Common equity tier 1                                             $         6,484          $            6,367
FHN non-cumulative perpetual preferred (b)                                   920                         426
Qualifying noncontrolling interest- First Horizon Bank
preferred stock                                                              295                         295

Tier 1 capital                                                   $         7,699          $            7,088
Tier 2 capital                                                               876                         830
Total regulatory capital                                         $         8,575          $            7,918
Risk-Weighted Assets
First Horizon Corporation                                        $        65,042          $           64,183
First Horizon Bank                                                        64,404                      63,601
Average Assets for Leverage
First Horizon Corporation                                                 87,401                      87,683
First Horizon Bank                                                        86,677                      86,953



Table I.2.16
                          REGULATORY RATIOS & AMOUNTS
                                                                       March 31, 2022                       December 31, 2021
                                                                   Ratio             Amount               Ratio               Amount
Common Equity Tier 1
First Horizon Corporation                                            9.97  %       $ 6,484                    9.92  %       $ 6,367
First Horizon Bank                                                  10.64            6,851                   10.75            6,838
Tier 1
First Horizon Corporation                                           11.84            7,699                   11.04            7,088
First Horizon Bank                                                  11.10            7,146                   11.22            7,133
Total
First Horizon Corporation                                           13.18            8,575                   12.34            7,918
First Horizon Bank                                                  12.26            7,893                   12.41            7,893
Tier 1 Leverage
First Horizon Corporation                                            8.81            7,699                    8.08            7,088
First Horizon Bank                                                   8.24            7,146                    8.20            7,133
Other Capital Ratios
Total period-end equity to period-end assets                         9.81                                     9.53
Tangible common equity to tangible assets (c)                        6.44                                     6.73

Adjusted tangible common equity to risk-weighted assets
(c)

                                                                  9.27                                     9.20


(a)The modified CECL transitional amount includes the impact to retained
earnings from the initial adoption of CECL plus 25% of the change in the
adjusted allowance for credit losses since FHN's initial adoption of CECL
through December 31, 2021. For the three months ended March 31, 2022, 25% of the
full amount at December 31, 2021 is phased out and not included in Common Equity
Tier 1 capital.
(b)The $94 million carrying value of the Series D preferred stock does not
qualify as Tier 1 capital because the earliest redemption date is less than five
years from the issuance date, which was re-set to July 1, 2020 when the IBKC
merger closed.
(c)Tangible common equity to tangible assets and adjusted tangible common equity
to risk-weighted assets are non-GAAP measures and are reconciled to total equity
to total assets (GAAP) in the Non-GAAP to GAAP Reconciliation - Table I.2.24.

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Banking regulators define minimum capital ratios for bank holding companies and
their bank subsidiaries. Based on the capital rules and definitions prescribed
by the banking regulators, should any depository institution's capital ratios
decline below predetermined levels, it would become subject to a series of
increasingly restrictive regulatory actions.

The system categorizes a depository institution's capital position into one of
five categories ranging from well-capitalized to critically under-capitalized.
For an institution the size of FHN to qualify as well-capitalized, Common Equity
Tier 1, Tier 1 Capital, Total Capital, and Leverage capital ratios must be at
least 6.50%, 8.00%, 10.00%, and 5.00%, respectively. Furthermore, a capital
conservation buffer of 50 basis points above these levels must be maintained on
the Common Equity Tier 1, Tier 1 Capital and Total Capital ratios to avoid
restrictions on dividends, share repurchases and certain discretionary bonuses.

As of March 31, 2022, each of FHN and First Horizon Bank had sufficient capital
to qualify as well-capitalized

institutions and to meet the capital conservation buffer requirement. Capital
ratios for both FHN and First Horizon Bank are calculated under the final rule
issued by the banking regulators in 2020 to delay the effects of CECL on
regulatory capital for two years, followed by a three-year transition period.

For FHN, the risk-based regulatory capital ratios increased in first quarter
2022 relative to year-end 2021 primarily from the impact of net income less
dividends during the first three months of 2022. FHN's Tier 1 Capital and Tier 1
Leverage ratios as of March 31, 2022 further benefited from the issuance of its
Series G preferred stock. First Horizon Bank's risk-based regulatory capital
ratios decreased from December 31, 2021 primarily from an increase in
risk-weighted assets.

During 2022, capital ratios are expected to remain above well-capitalized
standards plus the required capital conservation buffer.

Common Stock Purchase Programs

General Purchase Program

Pursuant to Board authority, FHN may repurchase shares of its common stock from
time to time and will evaluate the level of capital and take action designed to
generate or use capital, as appropriate, for the interests of the shareholders,
subject to legal and regulatory restrictions. FHN's Board has not authorized a
preferred stock purchase program.

On January 27, 2021, FHN announced that its Board of Directors approved a new
$500 million common share purchase program that was to expire on January 31,
2023, replacing the 2018 program, which was terminated. On October 26, 2021, FHN
announced that the 2021 program had been increased by $500 million and extended
to October 31, 2023. Like the 2018 program, the 2021

program is not tied to any compensation plan. Purchases may be made in the open
market or through privately negotiated transactions, including under Rule 10b5-1
plans as well as accelerated share repurchase and other structured transactions.
The timing and exact amount of common share repurchases will be subject to
various factors, including FHN's capital position, financial performance,
capital impacts of strategic initiatives, market conditions and regulatory
considerations.

As of March 31, 2022, $401 million in purchases had been made life-to-date under
the 2021 program at an average price per share of $16.60, or $16.58 excluding
commissions. Management does not currently anticipate purchasing additional
shares under this authority.

Table I.2.17

                     COMMON STOCK PURCHASES-GENERAL PROGRAM
                                                                                                  Total number of                Maximum approximate
(Dollar values and volume in             Total number                                             shares purchased              dollar value that may
thousands, except per share               of shares                Average price                as part of publicly            yet be purchased under
data)                                     purchased              paid per share (a)              announced programs                 the programs
2022
January 1 to January 31                          -                                N/A                         -                $            598,646
February 1 to February 28                        -                                N/A                         -                             598,646
March 1 to March 31                              -                                N/A                         -                             598,646
Total                                            -                                N/A                         -

(a) Represents total costs including commissions paid.


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Compensation Plans Purchase Program

A consolidated compensation plan share purchase program was announced on
August 6, 2004. This program consolidated into a single share purchase program
all of the previously authorized compensation plan share programs as well as the
renewal of the authorization to purchase shares for use in connection with two
compensation plans for which the share purchase authority had expired.

The total amount authorized under this consolidated compensation plan share
purchase program is 29.6 million shares calculated before adjusting for stock
dividends distributed through January 1, 2011. The authorization has been
reduced for that portion which relates to

compensation plans for which no stock option awards remain outstanding. The
shares may be purchased over the option exercise periods of the various
compensation plans on or before December 31, 2023. Purchases may be made in the
open market or through privately negotiated transactions and are subject to
various factors including FHN's capital position, financial performance, capital
impacts of strategic initiatives, market conditions and regulatory restrictions.
As of March 31, 2022, the maximum number of shares that may be purchased under
the program was 23.0 million shares. Management currently does not anticipate
purchasing a material number of shares under this authority during 2022.


Table I.2.18

               COMMON STOCK PURCHASES-COMPENSATION PLANS PROGRAM

                                                                                             Total number of                    Maximum number
                                         Total number                                        shares purchased                 of shares that may
(Volume in thousands, except              of shares              Average price             as part of publicly                 yet be purchased
per share data)                           purchased             paid per share              announced programs                under the programs
2022
January 1 to January 31                         67             $        18.19                           67                             23,016
February 1 to February 28                       16                      17.69                           16                             22,999
March 1 to March 31                             36                      23.79                           36                             22,963
Total                                          120             $        19.82                          120




Risk Management

There have been no significant changes to FHN's risk management practices as
described under "Risk Management" included in Item 7 of FHN's 2021 Annual Report
on Form 10-K, as amended.

Market Risk Management

Value-at-Risk and Stress Testing

VaR is a statistical risk measure used to estimate the potential loss in value
from adverse market movements over an assumed fixed holding period within a
stated confidence level. FHN employs a model to compute daily VaR measures for
its trading securities inventory. FHN computes VaR using historical simulation
with a 1-year lookback period at a 99% confidence level with 1-day and 10-day
time horizons. Additionally, FHN computes a

Stressed VaR measure. The SVaR computation uses the same model but with model
inputs reflecting historical data from a continuous 12-month period that
reflects a period of significant financial stress appropriate for the trading
securities portfolio.

A summary of FHN’s VaR and SVaR measures for 1-day and 10-day time horizons is
presented in the following table:

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Table I.2.19
                              VaR & SVaR MEASURES
                                             Three Months Ended                         As of
                                               March 31, 2022                      March 31, 2022
         (Dollars in millions)            Mean            High      Low
         1-day
         VaR                        $    2               $  2      $ 2                                       $ 2
         SVaR                            5                  7        4                                         5
         10-day
         VaR                             4                  5        3                                         4
         SVaR                           23                 34       18                                        24

                                             Three Months Ended                         As of
                                               March 31, 2021                      March 31, 2021
         (Dollars in millions)            Mean            High      Low
         1-day
         VaR                        $    3               $  4      $ 1                                       $ 1
         SVaR                            3                  5        2                                         3
         10-day
         VaR                            12                 21        1                                         4
         SVaR                           15                 21       11                                        13


                                                 Year Ended                        As of
                                              December 31, 2021            

December 31, 2021

          (Dollars in millions)            Mean           High      Low
          1-day
          VaR                        $    1              $  4      $ 1      $                2
          SVaR                            4                 7        2                       5
          10-day
          VaR                             5                21        1                       5
          SVaR                           18                27       11                      22


FHN’s overall VaR measure includes both interest rate risk and credit spread
risk. Separate measures of these component risks are as follows:

Table I.2.20

                       SCHEDULE OF RISKS INCLUDED IN VaR

                                          As of                                  As of                                       As of
                                      March 31, 2022                         March 31, 2021                            December 31, 2021
(Dollars in millions)            1-day              10-day              1-day              10-day                   1-day                   10-day
Interest rate risk           $        -          $       1          $        1          $       2          $        1                    $       1
Credit spread risk                    1                  1                   -                  1                   1                            1



The potential risk of loss reflected by FHN's VaR measures assumes the trading
securities inventory is static. Because FHN Financial procures fixed income
securities for purposes of distribution to clients, its trading securities
inventory turns over regularly. Additionally, FHNF traders actively manage the
trading securities inventory continuously throughout each trading day.
Accordingly, FHNF's trading securities inventory is highly dynamic, rather than
static. As a result, it would be rare for FHNF to incur a negative revenue day
in its fixed income activities at the levels indicated by its VaR measures.
In addition to being used in FHN's daily market risk management process, the VaR
and SVaR measures are also used by FHN in computing its regulatory market risk
capital requirements in accordance with the Market Risk Capital rules. For
additional information regarding FHN's capital adequacy refer to the Capital
section of this MD&A.

FHN also performs stress tests on its trading securities portfolio to calculate
the potential loss under various

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assumed market scenarios. Key assumed stresses used in those tests are:

Down 25 bps – assumes an instantaneous downward move in interest rates of 25
basis points at all points on the interest rate yield curve.

Up 25 bps – assumes an instantaneous upward move in interest rates of 25 basis
points at all points on the interest rate yield curve.

Curve flattening - assumes an instantaneous flattening of the interest rate
yield curve through an increase in short-term rates and a decrease in long-term
rates. The 2-year point on the Treasury yield curve is assumed to increase 15
basis points and the 10-year point on the Treasury yield curve is assumed to
decrease 15 basis points. Shifts in other points on the yield curve are
predicted based on their correlation to the 2-year and 10-year points.

Curve steepening – assumes an instantaneous steepening of the interest rate
yield curve through a decrease in short-term rates and an increase in long-term
rates. The 2-year point on the Treasury yield curve

is assumed to decrease 15 basis points and the 10-year point on the Treasury
yield curve is assumed to increase 15 basis points. Shifts in other points on
the yield curve are predicted based on their correlation to the 2-year and
10-year points.

Credit spread widening – assumes an instantaneous increase in credit spreads
(the difference between yields on Treasury securities and non-Treasury
securities) of 25 basis points.

Model Validation

Trading risk management personnel within FHN Financial have primary
responsibility for model risk management with respect to the model used by FHN
to compute its VaR measures and perform stress testing on the trading inventory.
Among other procedures, these personnel monitor model results and perform
periodic backtesting as part of an ongoing process of validating the accuracy of
the model. These model risk management activities are subject to annual review
by FHN's Model Validation Group, an independent assurance group charged with
oversight responsibility for FHN's model risk management.

Interest Rate Risk Management

Net Interest Income Simulation Analysis

The information provided in this section, including the discussion regarding the
outcomes of simulation analysis and rate shock analysis, is forward-looking.
Actual results, if the assumed scenarios were to occur, could differ because of
interest rate movements, the ability of management to execute its business
plans, and other factors, including those presented in the Forward-Looking
Statements section of this Report.

Management uses a simulation model to measure interest rate risk and to
formulate strategies to improve balance sheet positioning, earnings, or both,
within FHN's interest rate risk, liquidity, and capital guidelines. Interest
rate exposure is measured by forecasting 12 months of NII under various interest
rate scenarios and comparing the percentage change in NII for each scenario to a
base case scenario where interest rates remain unchanged. Assumptions are made
regarding future balance sheet composition, interest rate movements, and loan
and deposit pricing. In addition, assumptions are made about the magnitude of
asset prepayments and earlier than anticipated deposit withdrawals. The results
of these scenarios help FHN develop strategies for managing exposure to interest
rate risk. While management believes the assumptions used and scenarios selected
in its simulations are reasonable, simulation modeling provides only an
estimate, not a precise calculation, of exposure to any given change in interest
rates.

Based on a static balance sheet as of March 31, 2022, NII exposures over the
next 12 months assuming rate shocks of plus 25 basis points, 50 basis points,
100 basis points,

and 200 basis points are estimated to have favorable variances as shown in the
table below.

Table I.2.21

                           INTEREST RATE SENSITIVITY
                  Shifts in Interest Rates      % Change in Projected
                          (in bps)               Net Interest Income
                            +25                         3.8%
                            +50                         8.1%
                            +100                        16.4%
                            +200                        28.9%


A steepening yield curve scenario where long-term rates increase by 50 basis
points and short-term rates are static, results in a favorable NII variance of
0.5%. A flattening yield curve scenario where long-term rates decrease by 50
basis points and short-term rates are static, results in an unfavorable NII
variance of 0.7%. Rate shocks of minus 25 basis points and 50 basis points
result in unfavorable NII variances of 4.6% and 7.7%, assuming the absence of
negative rates. These hypothetical scenarios are used to create a risk
measurement framework, and do not necessarily represent management's current
view of future interest rates or market developments.

FHN's net interest income has been impacted by the disruption from the COVID-19
pandemic and its variants as well as the low-rate environment. The impact of
government stimulus programs and other developments have also influenced net
interest income results, although the impacts from these programs have abated,
and interest rates have begun to increase and are expected to

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continue increasing in the future. FHN continues to monitor current economic
trends and potential exposures closely.

Liquidity Risk Management

Among other things, ALCO is responsible for liquidity management: the funding of
assets with liabilities of appropriate duration, while mitigating the risk of
unexpected cash needs. ALCO and the Board of Directors have adopted a Liquidity
Policy of which the objective is to ensure that FHN meets its cash and
collateral obligations promptly, in a cost-effective manner and with the highest
degree of reliability. The maintenance of adequate levels of asset and liability
liquidity should provide FHN with the ability to meet both expected and
unexpected cash and collateral needs. Key liquidity ratios, asset liquidity
levels, and the amount available from funding sources are reported to ALCO on a
regular basis. FHN's Liquidity Policy establishes liquidity limits that are
deemed appropriate for FHN's risk profile.

In accordance with the Liquidity Policy, ALCO manages FHN's exposure to
liquidity risk through a dynamic, real time forecasting methodology. Base
liquidity forecasts are reviewed by ALCO and are updated as financial conditions
dictate. In addition to the baseline liquidity reports, robust stress testing of
assumptions and funds availability are periodically reviewed. FHN maintains a
contingency funding plan that may be executed should unexpected difficulties
arise in accessing funding that affects FHN, the industry, or both. Subject to
market conditions and compliance with applicable regulatory requirements from
time to time, funds are available from a number of sources, including the
available-for-sale securities portfolio, dealer and commercial customer
repurchase agreements, access to the overnight and term Federal Funds markets,
incremental borrowing capacity at the FHLB ($14.5 billion was available as of
March 31, 2022), brokered deposits, loan sales, syndications, and access to the
Federal Reserve Bank.

Core deposits are a significant source of funding and have historically been a
stable source of liquidity for banks. Generally, core deposits represent funding
from a financial institution's client base which provides inexpensive,
predictable pricing. The ratio of average loans, excluding loans HFS and
restricted real estate loans, to average core deposits was 74% for March 31,
2022 and 80% for December 31, 2021.

FHN may also use unsecured short-term borrowings as a source of liquidity.
Federal funds purchased from correspondent bank clients are considered to be
substantially more stable than funds purchased in the national broker markets
for federal funds due to the long, historical, and reciprocal nature of banking
services provided by FHN to these correspondent banks. The remainder of FHN's
wholesale short-term borrowings consists of securities sold under agreements to
repurchase

transactions accounted for as secured borrowings with business clients or broker
dealer counterparties.

Both FHN and First Horizon Bank have the ability to generate liquidity by
issuing senior or subordinated unsecured debt, preferred equity, and common
equity, subject to market conditions and compliance with applicable regulatory
requirements. In February 2022, FHN issued and sold to TD 4,936 shares of Series
G Perpetual Convertible Preferred Stock in a private placement transaction for
$494 million. As of March 31, 2022, FHN had outstanding $1.3 billion in senior
and subordinated unsecured debt and $1.0 billion in non-cumulative perpetual
preferred stock. As of March 31, 2022, First Horizon Bank and subsidiaries had
outstanding preferred shares of $295 million, which are reflected as
noncontrolling interest on the Consolidated Balance Sheets.

Parent company liquidity is primarily provided by cash flows stemming from
dividends and interest payments collected from subsidiaries. These sources of
cash represent the primary sources of funds to pay cash dividends to
shareholders and principal and interest to debt holders of FHN. Applying the
dividend restrictions imposed under applicable federal and state rules as
outlined above, the Bank's total amount available for dividends was $1.1 billion
as of April 1, 2022.

In March 2022, FHN agreed to suspend the Dividend Reinvestment Plan in
connection with the TD acquisition. As a result of the suspension of the Plan,
participants in the Plan received their first quarter 2022 FHN dividend, paid on
April 1, 2022, in cash. During the suspension period, dividend payments of FHN
will not be automatically reinvested in additional shares of FHN common stock
and participants in the Plan will be unable to purchase shares of FHN common
stock through optional cash investments under the Plan.

First Horizon Bank declared and paid common dividends to the parent company in
the amounts of $180 million and $85 million in first and second quarter 2022 and
$770 million in 2021. First Horizon Bank declared preferred dividends in first
quarter 2022 and declared and paid preferred dividends in each quarter of 2021.
Additionally, First Horizon Bank declared preferred dividends in second quarter
2022, payable in July 2022.

Payment of a dividend to shareholders of FHN is dependent on several factors
which are considered by the Board. These factors include FHN’s current and
prospective capital, liquidity, and other needs, applicable regulatory
restrictions (including capital conservation buffer requirements) and
availability of funds to FHN

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through a dividend from First Horizon Bank. Additionally, banking regulators
generally require insured banks and bank holding companies to pay cash dividends
only out of current operating earnings.

FHN paid a cash dividend of $0.15 per common share on April 1, 2022. FHN paid
cash dividends of $1,625 per Series E preferred share and $1,175 per Series F
preferred share on April 11, 2022 and $165 per Series C preferred share and $305
per Series D preferred share on May 2, 2022. In addition, in April 2022, the
Board approved cash dividends per share in the following amounts:

Table I.2.22
                                 CASH DIVIDENDS
                             APPROVED BUT NOT PAID
                      Dividend/Share       Record Date       Payment Date
Common Stock         $          0.15          06/10/2022        07/01/2022
Preferred Stock

Series B             $        331.25          07/15/2022        08/01/2022
Series C             $        165.00          07/15/2022        08/01/2022

Series E             $      1,625.00          06/24/2022        07/11/2022
Series F             $      1,175.00          06/24/2022        07/11/2022

Off-Balance Sheet Arrangements

In the normal course of business, FHN is a party to a number of activities that
contain credit, market and operational risk that are not reflected in whole or
in part in the consolidated financial statements. Such activities include
traditional off-balance sheet credit-related financial instruments. FHN enters
into commitments to extend credit to borrowers, including loan commitments,
lines of credit, standby letters of credit, and commercial letters of credit.
Many of the commitments are expected to expire unused or be only partially used;
therefore, the total amount of commitments does not necessarily represent future
cash requirements. Based on its available liquidity and available borrowing
capacity, FHN anticipates it will continue to have sufficient funds to meet its
current commitments.

Repurchase Obligations

Prior to September 2008, legacy First Horizon originated loans through its
pre-2009 mortgage business, primarily first lien home loans, with the intention
of selling them. As discussed in Note 10 - Contingencies and Other Disclosures,
FHN's principal remaining exposures for those activities relate to (i)
indemnification claims by underwriters, loan purchasers, and other parties which
assert that FHN-originated loans caused or contributed to losses which FHN is
legally obliged to indemnify, and (ii) indemnification or other claims related
to FHN's servicing of pre-2009 mortgage loans.

FHN's approach for determining the adequacy of the repurchase and foreclosure
reserve has evolved, sometimes substantially, based on changes in information
available. Repurchase/make-whole rates vary based on purchaser, vintage, and
claim type. For those loans repurchased or covered by a make-whole payment,
cumulative average loss severities range between 50 and 60 percent of the UPB.

Repurchase Accrual Approach

In determining potential loss content, claims are analyzed by purchaser,
vintage, and claim type. FHN considers various inputs including claim rate
estimates, historical average repurchase and loss severity rates, mortgage
insurance cancellations, and mortgage insurance curtailment requests. Inputs are
applied to claims in the

active pipeline, as well as to historical average inflows to estimate loss
content related to potential future inflows. Management also evaluates the
nature of claims from purchasers and/or servicers of loans sold to determine if
qualitative adjustments are appropriate.

Repurchase and Foreclosure Liability

FHN's repurchase and foreclosure liability, primarily related to its pre-2009
mortgage business, is comprised of accruals to cover estimated loss content in
the active pipeline (consisting of mortgage loan repurchase, make-whole,
foreclosure/servicing demands and certain related exposures), estimated future
inflows, and estimated loss content related to certain known claims not
currently included in the active pipeline. The liability contemplates
repurchase/make-whole and damages obligations and

estimates for probable incurred losses associated with loan populations excluded
from the settlements with the GSEs, as well as other whole loans sold, mortgage
insurance cancellation rescissions, and loans included in bulk servicing sales
effected prior to the settlements with the GSEs. FHN compares the estimated
probable incurred losses determined under the applicable loss estimation
approaches for the respective periods with current

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reserve levels. Changes in the estimated required liability levels are recorded
as necessary through the repurchase

and foreclosure provision. The repurchase and foreclosure liability was $17
million
as of March 31, 2022 and December 31, 2021.

Market Uncertainties and Prospective Trends

FHN's future results could be affected both positively and negatively by several
known trends. Key among those are changes in the U.S. and global economy and
outlook, government actions affecting interest rates, government actions
intended to stimulate the economy, and government actions and proposals which
could have negative impacts on the economy at large or on certain
businesses. Additional risks relate to how the COVID-19 pandemic continues to
affect FHN's clients, political uncertainty, changes in federal policies
(including those publicly discussed, formally proposed, or recently implemented)
and the potential impacts of those changes on our businesses and clients, and
whether FHN's strategic initiatives will succeed.

Inflation, Recession, and Federal Reserve Policy

In March 2020, in response to the economic downturn associated with the COVID-19
pandemic along with societal and government reactions to it, the Federal Reserve
"eased" by lowering short-term interest rates and starting an asset purchase
program intended to lower longer-term interest rates and foster access to
credit. The effective yields of 10-year and 30-year U.S. Treasury securities
achieved record low rates. These changes in interest rates and the volatility in
the market negatively impacted FHN's net interest margin. Amortization of net
processing fees related to government relief programs associated with the
COVID-19 pandemic, including the Paycheck Protection Program, offset a portion
of the net interest margin decline. During 2021, easing policy continued.
Interest rates fluctuated but remained very low, continuing to adversely impact
FHN's net interest margin. Inflation in the U.S. rose significantly during 2021
but was viewed as transitory, driven by temporary supply-chain shortages coupled
with strong demand as unemployment fell while government cash transfers to broad
sections of the public continued.

In 2022 to date, with the economic effects of the pandemic receding and
inflation continuing strongly, the Federal Reserve reversed its easing policy by
reducing ("tapering") its asset purchases and starting to increase short-term
interest rates. The Federal Reserve's most recent public comments indicate that:
asset purchases will stop shortly; the Federal Reserve's holdings of assets will
be reduced through attrition; and short-term rates are expected to be raised
several more times during 2022. The Federal Reserve has not indicated that it
intends to sell assets to reduce its holdings more quickly, but it could decide
to take such action later. In any case, these actions are intended to increase
both short- and long-term interest rates quickly. The primary driver of this
change in viewpoint is the persistence and strength of inflation in the U.S.

Until first quarter 2022, there had been no reported quarterly contraction in
the U.S. economy since 2020. The first quarter contraction was mild (1.4%,
annualized). If contraction persists in the second quarter, the U.S.

technically would be in recession. The risk of recession, or an actual
recessionary situation, may affect future actions by the Federal Reserve since
raising interest rates tends to slow the economy and increase recession risk.

During this still-ongoing transitional period, the yield curve has flattened and
modestly inverted at times. For example, overnight rates were higher than one-
and two-month rates. Unusual yield curve effects, including inversion, may
continue. A traditional measure of inversion-when the two-year rate is higher
than the ten-year rate for a sustained period of time-has not yet occurred,
though several brief inversions occurred in March and April this year.
Traditional yield curve inversion is viewed, with statistical support, as a
harbinger of economic recession.

As a result of recession risk, coupled with the uncertainties associated with
the war in eastern Europe, financial markets world-wide have been volatile in
2022 with, in many asset classes and business sectors, generally lower
valuations currently than at year-end 2021.

FHN cannot predict exactly when or how much short-term rates will be raised, nor
how market-driven long-term rates will behave, nor how those actions may affect
financial markets, during the remainder of 2022. Though rates have risen this
year, they continue to remain low by historical standards.

In several respects FHN is likely to benefit from rising rates, as long as the
rise in lending rates outpaces the inevitable rise in deposit and other funding
rates. One area, however, already has been hurt. The general increase in
interest rates in 2022 has pushed home mortgage rates in the U.S. higher. FHN's
direct mortgage lending, lending to mortgage companies, and title insurance
activities have seen business decline in 2022. Part of that decline likely is
seasonal, as first quarter often is weaker than the warmer months in the U.S.,
but part likely is driven by higher rates coupled with still-high property
valuations in many U.S. markets. If mortgage rates continue to rise, FHN's
revenues and earnings from

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those areas likely will continue to be muted compared with 2021.

War in Eastern Europe

In late February, 2022, the Russian military invaded Ukraine. Russian forces
occupied Ukrainian territory and cities, some of which have since been liberated
by Ukrainian forces. Much of Europe and the rest of the world, including the
U.S., has imposed economic sanctions on Russia for its attack, its ongoing
military campaign resulting in substantial civilian casualties, and the manner
in which it has prosecuted the war which, reportedly, has significantly violated
several international conventions and treaties.

The war and sanctions resulted in global oil and gas prices rising precipitously
in 2022, along with the prices of

several other commodities exported by Russia, Ukraine, or both, including grains
and vegetable oils. These effects likely have contributed significantly to a
change in the Federal Reserve's views of inflation in the U.S., and to fears of
a possible economic recession, all discussed in Inflation, Recession, and
Federal Reserve Policy immediately above. Also, several U.S. and European
multi-national companies have pulled operations and assets out of Russia and
parts of Ukraine, compounding the economic impact of the war on the global
economy.

COVID-19 Pandemic

The COVID-19 pandemic caused extraordinary disruption in 2020 that negatively
impacted the economy and business activity, especially lending (other than
lending related to home mortgages). During 2021 and thus far in 2022, FHN saw
the lending pipeline improve in several areas (unrelated to home mortgages) as
COVID-19 restrictions were partially or fully eased in most of FHN's markets.
Despite variants of the COVID-19 virus triggering reinstatement of some
restrictions in some markets, broadly speaking, FHN expects the impact of
COVID-19

restrictions in its markets to continue to diminish over the rest of this year.
However, the risk of resurgence remains.

In late March 2022, the pandemic began a resurgence in parts of China, prompting
the Chinese government to lock down Shanghai, China's most populous city and a
major international seaport. The lockdown has not yet significantly impacted the
global economy, but soon could if it continues, illustrating how COVID
resurgence outside of the U.S. can affect the U.S. and FHN.

LIBOR & Reference Rate Reform

LIBOR

The London Inter-Bank Offered Rate ("LIBOR") for many years was the most widely
used reference rate in the world. A large but declining portion of FHN's
floating rate loans use LIBOR, denominated in U.S. Dollars ("USD"), as the
reference rate to determine the interest rate paid by the client/borrower. In
addition, certain floating-rate securities issued by FHN use USD LIBOR as the
reference rate.

LIBOR is based on a mix of transaction-based data and expert judgment about
market conditions. It is published in different tenors, which are time periods
such as 1-week, 1-month, 12-month, etc.

LIBOR Discontinuance

About a decade ago, evidence emerged that some members of the panel that set
LIBOR may have manipulated the published LIBOR rates rather than using strictly
good-faith judgments. Several banks were fined.

In 2017, the Chief Executive of the United Kingdom Financial Conduct Authority
(the "FCA")-the governmental regulator of LIBOR-announced that it intended to
halt persuading or compelling banks to submit

rates for the calculation of LIBOR after 2021. In 2021, the FCA announced that
tenors of USD LIBOR would no longer be published as follows:

•One week and 2-month USD LIBOR would not be published after December 31, 2021;
and

•All other USD LIBOR tenors (e.g., overnight, 1-month, 3-month, 6-month and
12-month tenors) would not be published after June 30, 2023.

U.S. Regulatory Position

In 2020, the Federal Reserve, the OCC, and the FDIC jointly encouraged U.S.
banks to transition away from LIBOR for new contracts as soon as practicable
and, in any event, by December 31, 2021. They noted that entering into new
contracts that use LIBOR as a reference rate after December 31, 2021 would
create safety and soundness risks.

Alternatives to LIBOR

LIBOR became the market-preferred reference rate because it was perceived by
lenders and borrowers as being superior to alternatives in a wide range of
circumstances.Now that the origination of LIBOR-indexed

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loans has ended, no single alternative reference rate has replaced LIBOR for USD
transactions. Instead, a number of different reference rates are being used in
different circumstances. These include:

•SOFR. The Alternative Reference Rates Committee ("ARRC") is a group of
private-market and financial regulator participants convened by the Federal
Reserve and the New York Federal Reserve Bank to help ensure a successful
transition from USD LIBOR to a more robust reference rate. The ARRC has
recommended the Secured Overnight Financing Rate ("SOFR") as its preferred
alternative. SOFR resets daily and is based on actual transaction data for the
U.S. Treasury repurchase market. Accordingly, SOFR represents a riskless secured
overnight rate.

•CME Term SOFR. Published by CME Group, Term SOFR is a forward-looking rate,
with 1-month, 3-month and 6-month tenors, and is based on SOFR futures
contracts. The ARRC has recommended conventions for Term SOFR rates and has
recommended CME Group as the administrator for Term SOFR.

•AMERIBOR. The American Interbank Offered Rate ("AMERIBOR") Index is produced by
the American Financial Exchange. AMERIBOR is based on actual transaction data
involving credit decisions by many financial institutions, on an unsecured
basis.

•BSBY. The Bloomberg short-term bank yield index (“BSBY”) is a proprietary rate
index calculated and published by Bloomberg Index Services Limited. BSBY is
based on actual transaction data involving unsecured credit.

•Prime. Although traditional prime rates (with each bank setting its own) are
not likely to regain the prominence they had decades ago when U.S. banks were
much smaller and the industry was more fragmented, for some clients and products
banks may increase their usage of prime rates.

The alternatives listed above were made available to the majority of FHN's
commercial clients starting in November 2021. In accordance with the U.S.
regulatory position, FHN ceased entering into new LIBOR based contracts as of
December 31, 2021. Other alternative reference rates are being developed and FHN
may consider them at a future time.

Each alternative reference rate has advantages and disadvantages compared with
other alternatives in various circumstances. Despite being supported by the
Federal Reserve's ARRC, SOFR may not gain the level of market acceptance and
usage that USD LIBOR enjoyed within the U.S. Key aspects of SOFR that support
this view are: (a) SOFR fundamentally is an overnight rate, and so is not easily
or reliably translated into typical LIBOR tenors; and (b) SOFR is both secured
and riskless, and so does not necessarily track a bank's cost of funds very
well. For a

bank, it is critical to avoid significant mismatches over time between its
(variable) cost of funds and its (variable) interest income. Term SOFR attempts
to address some of these shortcomings, but not all of them.

All of the alternative reference rates selected by FHN to date meet the
International Organization of Securities Commissions ("IOSCO") Principles for
Financial Benchmarks, as affirmed by the rate administrator and/or an
independent auditor. While banking regulators have stated that banks are free to
choose the index rates they offer clients, some public sector officials have
urged caution in using the new credit sensitive alternative reference rates,
primarily due to the robustness of underlying data used to derive the rates.
More specifically, there is concern of an "inverted pyramid" effect where a
large number of financial contracts could be priced using an index derived from
a relatively low volume of transactions. In an interagency statement on October
20, 2021, U.S. banking regulatory agencies noted that "supervised institutions
should understand how their chosen reference rate is constructed and be aware of
any fragilities associated with that rate and the markets that underlie it".
IOSCO has also warned of the potential for the "inverted pyramid" problem and
will monitor how the IOSCO label is used by administrators.

FHN is monitoring the credit sensitive reference rates and regulatory guidance
around use of such rates. FHN plans to limit use of credit sensitive rates to
commercial loans ( approximately 2% of global USD LIBOR market) and related
customer swaps (pending development of derivatives markets for these rates).
Additionally, FHN expects that each financial contract will contain fallback
language to guide transition from a credit sensitive rate to an alternative
should that action be deemed necessary in the future.

FHN’s Actions to Date & Transition Plans

Starting in 2019, FHN modernized the fallback language used in its loan
documentation to better handle how floating rate loans would be re-set if LIBOR
ceased to be published during the loan term.

In the fourth quarter of 2021, FHN ceased using USD LIBOR for new lending and
renegotiated terms with clients whose loans are based on 1-week or 2-month USD
LIBOR, which ceased publication at the end of 2021. Only a small portion of
FHN's clients had such loans.

On the consumer side, FHN began transitioning from LIBOR-based adjustable rate
mortgages ("ARMS") to SOFR-based ARMs in November 2021, and no longer offers
LIBOR-based ARMs. SOFR has emerged as a market standard for ARMs in the U.S. and
is the conforming convention for Fannie Mae and Freddie Mac.

For all products, FHN developed a go-to-market strategy which included pricing
considerations, associate training, and client communications. All required
systems, processes, and reporting were updated to accommodate

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the transition. FHN continues to monitor developments related to each of the
alternative reference rates it currently offers. FHN's plans may change to meet
evolving market conditions and preferences.

FHN has established a LIBOR Transition Office to assist associates in working
with their clients to re-negotiate terms of loan and derivative contracts that
extend past the June 30, 2023 cessation date for the remaining USD LIBOR tenors
noted above.

While FHN has exposure to LIBOR in various contracts (e.g. securities,
derivatives), FHN’s primary exposure to LIBOR is in floating rate loans to
customers and derivative contracts issued to customers through FHN Financial.
Below is a summary of these exposures as of March 31, 2022:

Table I.2.23

                                LIBOR EXPOSURES
                                                Mature after
(Dollars in billions)    As of March 31, 2022    June 2023
Commercial loans (a)    $                 22   $         16
Consumer loans (a)                         3              3
Customer swaps (b)                        10             10

(a) Amounts represent outstanding loan balances as of March 31, 2022.
(b) FHN has entered into offsetting upstream transactions with dealers to
offset its market risk exposure.

FHN is developing a plan to amend existing LIBOR-based derivative instruments.

Financial Accounting Aspects

In 2020, the FASB issued ASU 2020-04, "Facilitation of the Effects of Reference
Rate Reform on Financial Reporting," which provides several optional expedients
and exceptions to ease the potential burden in accounting for reference rate
reform. The scope of ASU 2020-04 was expanded in 2021 with ASU 2021-01, "Scope".
Refer to the Accounting Changes With Extended Transition Periods section of Note
1 - Basis of Presentation and Accounting Policies for additional information.

In April 2022, the FASB proposed to extend the relief under Topic 848 (Reference
Rate Reform) by two years, from December 31, 2022 to December 31, 2024.

U.S. Tax Accommodation

On December 30, 2021, the IRS released final guidance that is intended to
facilitate the transition of existing contracts from LIBOR to new reference
rates without triggering modification accounting or taxable exchange treatment
for those contracts. This guidance specifies what must be met in order to
qualify for the beneficial transition approach and FHN is considering this
guidance in its transition plans.

Critical Accounting Policies and Estimates

FHN has made no significant changes in its critical accounting policies and
estimates from those disclosed in its 2021 Annual Report on Form 10-K, as
amended.

Accounting Changes

Refer to Note 1 - Basis of Presentation and Accounting Policies for a detail of
accounting changes with extended transition periods and accounting changes
issued but not currently effective, which section is incorporated into MD&A by
this reference.
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Non-GAAP Information
Table I.2.24
                        NON-GAAP TO GAAP RECONCILIATION
                                                                          Three Months Ended
(Dollars in millions; shares in thousands)                 March 31, 2022         December 31, 2021               March 31, 2021
Pre-provision Net Revenue (Non-GAAP)
Net interest income (GAAP)                                $         479          $            498                $         508
Plus: Noninterest income (GAAP)                                     229                       247                          298
Total revenues (GAAP)                                               708                       745                          806
Less: Noninterest expense (GAAP)                                    493                       528                          544
Pre-provision net revenue (Non-GAAP)                      $         215          $            217                $         262

Average Tangible Common Equity (Non-GAAP)
Average total equity (GAAP)                               $       8,618          $          8,526                $       8,349
Less: Average noncontrolling interest (a)                           295                       295                          295
Less: Average preferred stock (a)                                   695                       520                          470
(A) Total average common equity                           $       7,628          $          7,711                $       7,584

Less: Average goodwill and other intangible assets
(GAAP) (b)

                                                        1,802                     1,815                        1,857
(B) Average tangible common equity (Non-GAAP)             $       5,826          $          5,896                $       5,727

Net Income Available to Common Shareholders
(C) Net income available to common shareholders
(annualized) (GAAP)                                       $         756          $            868                $         911

Tangible Common Equity (Non-GAAP)
(D) Total equity (GAAP)                                   $       8,696          $          8,494                $       8,307
Less: Noncontrolling interest (a)                                   295                       295                          295
Less: Preferred stock (a)                                         1,014                       520                          470
(E) Total common equity                                   $       7,387          $          7,679                $       7,542
Less: Goodwill and other intangible assets (GAAP)
(b)                                                               1,796                     1,809                        1,850
(F) Tangible common equity (Non-GAAP)                             5,591                     5,870                        5,692

Less: Unrealized gains (losses) on AFS securities,
net of tax

                                                         (440)                      (36)                           5
(G) Adjusted tangible common equity (Non-GAAP)            $       6,031          $          5,906                $       5,687

Tangible Assets (Non-GAAP)
(H) Total assets (GAAP)                                   $      88,660          $         89,092                $      87,513
Less: Goodwill and other intangible assets (GAAP)
(b)                                                               1,796                     1,809                        1,850
(I) Tangible assets (Non-GAAP)                            $      86,864          $         87,283                $      85,663

Risk-Weighted Assets
(J) Risk-weighted assets (c)                              $      65,042          $         64,183                $      62,339

Period-end Shares Outstanding
(K) Period-end shares outstanding                               534,587                   533,577                      552,374

Ratios

(C)/(A) Return on average common equity (GAAP)                     9.92  %                  11.26  %                     12.01  %
(C)/(B) Return on average tangible common equity
(Non-GAAP)                                                        12.98                     14.72                        15.90
(D)/(H) Total period-end equity to period-end
assets (GAAP)                                                      9.81                      9.53                         9.49
(F)/(I) Tangible common equity to tangible assets
(Non-GAAP)                                                         6.44                      6.73                         6.64
(G)/(J) Adjusted tangible common equity to
risk-weighted assets (Non-GAAP)                                    9.27                      9.20                         9.12
(E)/(K) Book value per common share (GAAP)                $       13.82          $          14.39                $       13.65
(F)/(K) Tangible book value per common share
(Non-GAAP)                                                $       10.46          $          11.00                $       10.30

Loans and leases excluding PPP loans (Non-GAAP)
Commercial loans and leases excluding PPP loans           $      42,643          $         42,139                $      41,351
PPP loans                                                           642                     1,038                        5,070
Total commercial loans and leases                                43,285                    43,177                       46,421
Total consumer loans                                             11,727                    11,682                       12,179
Total loans and leases                                    $      55,012          $         54,859                $      58,600

(a) Included in total equity on the Consolidated Balance Sheets.
(b) Includes goodwill and other intangible assets, net of amortization.
(c) Defined by and calculated in conformity with bank regulations applicable to
FHN.

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