EX-99.1

Exhibit 99.1

FIRST QUARTER 2008
FINANCIAL SUPPLEMENT

If you need further information, please contact:
Dave Miller, Investor Relations
901-523-4162
dwmiller@firsthorizon.com



PERFORMANCE HIGHLIGHTS

Summary of First Quarter 2008 Significant Items (in millions)


Segment	Item	Income Statement	Pre-Tax			Comments
Regional Banking	Loan losses	Provision for loan losses	$	(75.3	)	Provisioning for increased deterioration in loan portfolio.

Capital Markets	LOCOM on pooled trust preferred warehouse	Noninterest income: Capital Markets	$	(36.2	)	Decline in fair value of warehouse due to widening of credit spreads during the quarter. Partially offset by a decrease of approximately $12 million in noninterest expenses.

	Loan losses	Provision for loan losses	$	(15.0	)	Provisioning for correspondent banking loans.

National Specialty Lending	Loan losses	Provision for loan losses	$	(149.5	)	Provisioning reflects additional deterioration in national construction portfolios and inherent losses in home equity lending portfolio.

Mortgage Banking	Adoption of accounting standards	Noninterest income: Mortgage Banking	$	96.9		Effects of implementing fair value measurements standard, prospectively electing fair value accounting for almost the entire mortgage warehouse and prospectively recognizing the value of servicing in interest rate lock commitments.

	LOCOM for warehouse	Noninterest income: Mortgage Banking	$	(17.0	)	Adjustments to carrying values for spread widening and rising delinquencies.

	Election of fair value for mortgage warehouse on SFAS 91 deferrals	Noninterest expense: Various (primarily employee compensation, incentives and benefits)	$	(54.5	)	Effect of no longer deferring origination costs for warehouse loans which are now carried at fair value. Offsetting amount included above as increase in Mortgage Banking noninterest income.

Corporate	Visa IPO gain	Noninterest income: Securities gains/(losses), net	$	65.9		Gain on shares redeemed as part of IPO process.

	Visa legal settlement accrual reversal	Noninterest expense: Other	$	30.0		Reversal of proportionate share of escrow account established by Visa for certain Visa litigation matters for which FHN has a contingent guarantee.

	Restructuring, Repositioning & Efficiency Initiatives	Noninterest expense: Various	$	(17.6	)	Expenses from severance, office closures and First Horizon Banks divestitures.

	Restructuring, Repositioning & Efficiency Initiatives	Noninterest income: Various	$	(3.7	)	Disposition of 10 First Horizon Bank branches. Transaction costs for sale of MSR on $7.5 billion of principal.

(First Quarter 2008 vs. Fourth Quarter 2007)

Asset Quality

–

Provision increased to $240.0 million in the current quarter compared to $156.6 million in fourth quarter 2007

	–		Portfolio deterioration in current quarter due to declining economic conditions

	–		Continuing to apply focused portfolio management activities to identify problem assets

	–		Loan level reviews of commercial real estate and C&I portfolios

	–		Home equity loss trends prompted the need for additional reserves given loss severities being experienced

	–		Trends in the one-time close portfolio prompted the need for additional reserves

–

Net charge-offs were 181 annualized basis points of average loans driven by national construction, consumer lending and C&I portfolios

–

Charging off balances down to most likely estimate of collateral value net of costs to sell

–

NPAs increased to 278 basis points from 166 basis points reflecting portfolio deterioration from current economic conditions

–

Total NPAs increased to $620.9 million from $392.4 million primarily from deterioration in national construction portfolios

–

Allowance as a percentage of loans ratio increased to 220 basis points from 155 basis points in prior quarter

Capital

–		Declared quarterly dividend of $.20 per share

–		Current Ratios (estimated based on period end balances)

	–		6.08% for tangible common equity to risk weighted assets

	–		8.10% for Tier I

	–		12.82% for Total Capital



PERFORMANCE HIGHLIGHTS (continued)

(First Quarter 2008 vs. Fourth Quarter 2007)

Regional Banking

–		Excluding deposits held for sale, average core deposits increased 2% over prior quarter

–		Net interest margin declined to 4.39% compared to 4.74% in fourth quarter

	–		Reflects inability to pass through all Federal Reserve rate cuts to deposit customers

	–		Approximately one-third is offset in Corporate segment due to internal interest allocation

–

Noninterest income decreased to $87.1 million from $95.5 million

–

Seasonal decline in fee income

–

Provision expense in current quarter reflects increased deterioration in commercial loans

–

Noninterest expense declines primarily attributable to effect of efficiency initiatives

–

Partially offset by seasonal increases in personnel costs

–

Prior quarter included recognition of losses on owned real estate and reductions in value of low income housing investments

–

Completed disposition of 10 First Horizon Bank branches

–

9 additional branches expected to be sold in second quarter 2008

–

Loans of $207.7 million and deposits of $118.7 million remain classified as held-for-sale

Capital Markets

–

Fixed income revenues were $152.2 million in current quarter compared to $77.1 million in prior quarter

–

Increase in activity during first quarter as Federal Reserve aggressively lowered rates resulting in a steeper yield curve

–

Other product revenues decreased to $(18.3) million from $26.2 million

–

No pooled trust preferred transaction executed during first quarter

–

$ 36.2 million LOCOM adjustment on warehouse to reflect widening of credit spreads

–

Approximate $12 million offsetting decrease in noninterest expense

–

Provision increased to $15.0 million from $1.2 million to reflect deterioration of correspondent banking loans

–

Loans participated in through downstream correspondent banks

–

Increase in noninterest expense resulted from higher production levels

National Specialty Lending

–

Net interest margin declined to 2.31% compared to 2.42% in fourth quarter

–

Driven by additional non-accrual construction loans

–

Increased provision for loan losses reflects additional deterioration within national construction portfolios

–

Recognition of inherent losses in consumer lending also contributed

–

Contraction of portfolios will continue since origination activity has been significantly curtailed

–

Noninterest income improved as repurchase reserves were significantly less than prior quarter

–

Partially offset by decline in value of servicing assets to reflect rate reductions

–

Noninterest expense declined from the effects of business reductions initiated during the quarter

Mortgage Banking

–

Net effect of adopting new accounting standards positively affected pre-tax earnings by $42.4 million

–

Adoption of SFAS 157 negatively affected earnings by $15.7 million related to valuation of interest rate lock commitments

–

Prospective application of SAB 109 and SFAS 159 positively impacted earnings by $58.1 million

–

Related to recognition of MSR values in interest rate lock commitments and loans

–

Increased origination income

–

35% increase in deliveries and 19% increase in originations as lower rates drove increased refinance activity

–

Gain (loss) on sale margin declined to (20) basis points from 5 basis points

–

Spread widening on adjustable rate and non-agency eligible production continues to adversely impact margins

–

LOCOM adjustments of $17 million in current quarter vs. $10.9 million in prior quarter

–

Hedging results positively impacted earnings by $32.7 million vs. $18.6 million negative effect in fourth quarter

–

Resulted from wider mortgage-swap spreads and decreased options expense

–

In prior quarter, value of MSR and other retained interests reduced by $135.3 million from placing more emphasis on broker price discovery

–

Net interest income increased in line with increase in warehouse margin and increase in average warehouse balance

–

Decrease in servicing runoff to $37.4 million for current quarter from $41.0 million in prior quarter

–

Noninterest expense decreased to $147.5 million in current quarter from $174.2 million in fourth quarter

–

$ 71.1 million impairment of goodwill and $4.8 million legal settlement accrual in fourth quarter

–

Partially offset by $54.5 million increase in noninterest expense (primarily compensation costs) related to loan originations for which fair value was elected

–

Amount is offset by corresponding increase in gain on sale

Corporate Segment

–

Visa IPO resulted in $95.9 million improvement in pre-tax earnings

	–		Equity securities gains of $65.9 million for shares redeemed in conjunction with IPO

	–		$ 30.0 million of expense reversals associated with Visa’s funding of escrow account for certain Visa litigation matters

	–		$25.7 million of contingent liability remains for estimated pro rata share of remaining contingent liability for these matters

	–		2.4 million restricted shares retained after IPO will be carried at historical cost basis of $0

–

Net charges of $21.3 million recognized for restructuring, repositioning and efficiency initiatives (detail on next page)

	–		Current quarter included $17.6 million of expenses, including $2.5 million of asset impairments

	–		$ 2.7 million of transaction costs from sale of mortgage servicing rights presented as reduction of Mortgage Banking income

	–		$1.0 million of losses related to First Horizon Bank branch sales presented in (Losses)/Gains on Divestitures

	–		Prior quarter included $26.6 million of net charges for these initiatives

–

Equity security losses of $10.4 million recognized in prior quarter for impairment of other equity securities

Taxes

–

Approximate $8 million positive quarterly effect from permanent tax credits



CONSOLIDATED SUMMARY INCOME STATEMENT Quarterly, Unaudited


																1Q08 Change vs.
(Thousands)	1Q08			4Q07			3Q07			2Q07			1Q07			4Q07			1Q07

Net interest income	$	228,092		$	225,987		$	237,804		$	239,432		$	237,419			1	%		(4	)%
Noninterest income		383,130			103,429			203,475			281,313			272,915			270	%		40	%
Securities gains/(losses), net		65,946			(10,442	)		—			(1,014	)		10,273			NM			NM

Total revenue		677,168			318,974			441,279			519,731			520,607			112	%		30	%

Noninterest expense		438,277			561,559			421,622			457,240			403,012			(22	)%		9	%
Provision		240,000			156,519			43,352			44,408			28,486			53	%		743	%

Pretax (loss)/income		(1,109	)		(399,104	)		(23,695	)		18,083			89,109			NM			NM
(Benefit)/provision for income taxes		(8,146	)		(146,342	)		(9,330	)		(3,861	)		18,802			NM			NM

Income/(loss) from continuing operations		7,037			(252,762	)		(14,365	)		21,944			70,307			NM			(90	)%
Income from discontinued operations, net of tax		883			4,137			209			179			240			(79	)%		268	%

Net income/(loss)	$	7,920		$	(248,625	)	$	(14,156	)	$	22,123		$	70,547			NM			(89	)%

Common Stock Data
Diluted EPS from continuing operations	$	.06		$	(2.00	)	$	(.11	)	$	.17		$	.55			NM			(89	)%
Diluted EPS		.06			(1.97	)		(.11	)		.17			.55			NM			(89	)%
Diluted shares		126,660			126,089			126,058			128,737			128,704			*			(2	)%
Period-end shares outstanding		126,786			126,366			126,388			126,237			125,749			*			1	%
Dividends declared per share	$	.20		$	.45		$	.45		$	.45		$	.45			(56	)%		(56	)%

Key Ratios & Other
Return on average assets		.09	%		(2.65	)%		(.15	)%		.23	%		.74	%
Return on average equity		1.47	%		(42.52	)%		(2.31	)%		3.57	%		11.61	%
Net interest margin		2.81	%		2.77	%		2.87	%		2.79	%		2.84	%
Tax rate		NM			NM			NM			NM			21.10	%
Efficiency ratio		64.72	%		176.05	%		95.55	%		87.98	%		77.41	%
FTE employees		9,555			9,941			11,052			11,903			12,018			(4	)%		(20	)%



NM - Not meaningful

*		Amount is less than one percent



CONSOLIDATED INCOME STATEMENT Quarterly, Unaudited


															1Q08 Change vs.
(Thousands)	1Q08			4Q07			3Q07			2Q07			1Q07		4Q07			1Q07

Interest income	$	476,443		$	545,136		$	582,735		$	594,903		$	583,185		(13	)%		(18	)%
Less interest expense		248,351			319,149			344,931			355,471			345,766		(22	)%		(28	)%

Net interest income		228,092			225,987			237,804			239,432			237,419		1	%		(4	)%
Provision for loan losses		240,000			156,519			43,352			44,408			28,486		53	%		743	%

Net interest income after provision for loan losses		(11,908	)		69,468			194,452			195,024			208,933		(117	)%		(106	)%

Noninterest income:
Capital markets (c)		131,457			98,482			63,722			85,054			87,113		33	%		51	%
Deposit transactions and cash management		42,553			47,971			44,863			43,079			39,358		(11	)%		8	%
Mortgage banking (a) (c) (d) (e)		158,712			(113,965	)		39,022			71,300			73,097		NM			117	%
Trust services and investment management		9,109			10,097			9,922			10,628			9,688		(10	)%		(6	)%
Insurance commissions		8,144			7,529			6,747			7,674			9,789		8	%		(17	)%
Revenue from loan sales and securitizations		(4,097	)		(171	)		4,774			9,615			9,663		NM			NM
Securities gains/(losses), net (b)		65,946			(10,442	)		—			(1,014	)		10,273		NM			542	%
(Losses)/gains on divestitures (a)		(995	)		15,695			—			—			—		NM			NM
Other		38,247			37,791			34,425			53,963			44,207		1	%		(13	)%

Total noninterest income		449,076			92,987			203,475			280,299			283,188		383	%		59	%

Adjusted gross income after provision for loan losses		437,168			162,455			397,927			475,323			492,121		169	%		(11	)%

Noninterest expense:
Employee compensation, incentives and benefits (a) (d)		287,470			226,905			236,683			258,191			246,343		27	%		17	%
Occupancy (a)		28,591			34,209			34,778			33,402			28,784		(16	)%		(1	)%
Operations services		18,964			20,148			18,774			17,457			17,821		(6	)%		6	%
Equipment rentals, depreciation and maintenance (a)		15,011			16,252			17,270			21,791			17,613		(8	)%		(15	)%
Communications and courier (a) (d)		11,004			10,664			10,959			10,746			11,540		3	%		(5	)%
Amortization of intangible assets		2,440			2,864			2,647			2,623			2,825		(15	)%		(14	)%
Goodwill impairment		—			71,074			13,010			—			—		NM			NM
Other (a) (b) (d)		74,797			179,443			87,501			113,030			78,086		(58	)%		(4	)%

Total noninterest expense		438,277			561,559			421,622			457,240			403,012		(22	)%		9	%

Pretax (loss)/income		(1,109	)		(399,104	)		(23,695	)		18,083			89,109		NM			NM
(Benefit)/provision for income taxes		(8,146	)		(146,342	)		(9,330	)		(3,861	)		18,802		NM			NM

Income/(loss) from continuing operations		7,037			(252,762	)		(14,365	)		21,944			70,307		NM			(90	)%
Income from discontinued operations, net of tax		883			4,137			209			179			240		(79	)%		268	%

Net income/(loss)	$	7,920		$	(248,625	)	$	(14,156	)	$	22,123		$	70,547		NM			(89	)%



NM - Not meaningful

1Q08 Key Impacts

(a)		Includes a portion of net charges for $21.3 million, see Restructuring, Repositioning and Efficiency Initiatives page for further details

(b)		Includes gain on shares redeemed and legal settlement accrual reversal related to Visa’s initial public offering

(c)		Includes LOCOM and other loan sale adjustments

(d)		Includes effects of electing fair value for mortgage warehouse loans

(e)		Includes effect of adopting new accounting standards



OTHER INCOME AND OTHER EXPENSE Quarterly, Unaudited


														1Q08 Change vs.
(Thousands)	1Q08			4Q07			3Q07			2Q07		1Q07		4Q07			1Q07

Other Income
Brokerage management fees and commissions	$	8,413		$	8,747		$	9,189		$	10,263	$	9,631		(4	)%		(13	)%
Bank owned life insurance		6,962			6,697			6,260			6,250		5,965		4	%		17	%
Bankcard income		5,540			6,221			6,329			6,319		6,005		(11	)%		(8	)%
Other service charges		3,396			3,357			3,581			3,677		3,681		1	%		(8	)%
Remittance processing		3,273			3,450			3,171			3,330		3,500		(5	)%		(6	)%
Reinsurance fees		3,145			2,794			2,418			2,056		1,784		13	%		76	%
ATM interchange fees		2,238			2,224			2,200			2,131		1,917		1	%		17	%
Deferred compensation		(6,550	)		(1,667	)		526			7,603		1,265	NM				(618	)%
Letter of credit		1,458			1,759			1,864			1,495		1,620		(17	)%		(10	)%
Electronic banking fees		1,618			1,636			1,631			1,639		1,655		(1	)%		(2	)%
Check clearing fees		862			1,125			1,275			1,284		1,212		(23	)%		(29	)%
Federal flood certifications		1,523			1,084			1,207			1,383		1,123		40	%		36	%
Other		6,369			364			(5,226	)		6,533		4,849	NM				31	%

Total	$	38,247		$	37,791		$	34,425		$	53,963	$	44,207		1	%		(13	)%


Other Expense
Legal and professional fees (a)	$	15,022		$	17,629		$	13,532		$	14,130	$	11,591		(15	)%		30	%
Computer software (a)		7,956			26,185			9,334			9,237		9,186		(70	)%		(13	)%
Advertising and public relations (a)		9,327			10,297			10,475			11,312		10,262		(9	)%		(9	)%
Travel and entertainment (a)		5,027			5,829			7,065			7,391		5,814		(14	)%		(14	)%
Low income housing expense		4,566			6,605			4,483			5,082		4,752		(31	)%		(4	)%
Contract employment (a)		5,584			5,202			5,770			5,549		5,022		7	%		11	%
Distributions on preferred stock of subsidiary		4,061			4,679			4,761			4,701		4,658		(13	)%		(13	)%
Foreclosed real estate		6,362			8,871			1,393			3,492		2,292		(28	)%		178	%
Supplies (a)		3,020			3,496			3,382			3,430		3,601		(14	)%		(16	)%
Loan closing costs (c)		13,060			1,279			4,857			3,623		3,024		921	%		332	%
Customer relations		1,707			2,834			2,605			2,420		1,942		(40	)%		(12	)%
Other insurance and taxes		1,758			2,684			1,751			2,003		2,403		(35	)%		(27	)%
Employee training and dues		1,398			1,183			1,703			2,028		1,648		18	%		(15	)%
Fed services fees		1,611			1,463			1,540			1,599		1,445		10	%		11	%
Complimentary check expense		1,298			1,206			1,237			1,324		1,291		8	%		1	%
Loan insurance expense		1,113			1,073			1,123			1,167		1,247		4	%		(11	)%
Bank examination costs		1,053			1,142			1,141			1,091		1,130		(8	)%		(7	)%
Deposit insurance premium		2,827			1,223			615			606		883		131	%		220	%
Other (a)(b)		(11,953	)		76,563			10,734			32,845		5,895		(116	)%		(303	)%

Total	$	74,797		$	179,443		$	87,501		$	113,030	$	78,086		(58	)%		(4	)%


*		Amount is less than one percent

NM — Not meaningful

1Q08 Key Impacts

(a)		Includes a portion of net charges for $9.1 million, see Restructuring, Repositioning and Efficiency Initiatives

(b)		Includes amounts related to legal settlement accrual reversal related to Visa’s initial public offering

(c)		Includes effect of electing fair value for mortgage warehouse loans



CONSOLIDATED PERIOD-END BALANCE SHEET Quarterly, Unaudited


																1Q08 Change vs.
(Thousands)	1Q08			4Q07			3Q07			2Q07			1Q07			4Q07			1Q07

Assets
Investment securities	$	3,034,798		$	3,032,791		$	3,076,360		$	3,374,853		$	3,310,960			*			(8	)%
Loans held for sale		3,616,018			3,461,712			2,900,464			3,330,489			2,921,629			4	%		24	%
Loans held for sale-divestiture (a)		207,672			289,878			565,492			—			—			(28	)%	NM
Loans, net of unearned income		21,932,020			22,103,516			21,973,004			22,382,303			22,268,190			(1	)%		(2	)%
Federal funds sold and securities purchased under agreements to resell		898,615			1,089,495			1,096,624			1,121,052			1,757,365			(18	)%		(49	)%
Interest bearing deposits with other financial institutions		46,382			39,422			30,993			58,241			15,739			18	%		195	%
Trading securities		1,553,053			1,768,763			1,734,653			2,291,704			2,443,342			(12	)%		(36	)%

Total earning assets		31,288,558			31,785,577			31,377,590			32,558,642			32,717,225			(2	)%		(4	)%

Cash and due from banks		851,875			1,170,220			936,707			799,428			861,534			(27	)%		(1	)%
Capital markets receivables		1,680,057			524,419			1,219,720			1,240,456			1,144,135			220	%		47	%
Mortgage servicing rights, net		895,923			1,159,820			1,470,589			1,522,966			1,540,041			(23	)%		(42	)%
Goodwill		192,408			192,408			267,228			279,825			275,582			—			(30	)%
Other intangible assets, net		52,017			56,907			58,738			61,947			61,672			(9	)%		(16	)%
Premises and equipment, net		382,488			399,305			411,515			438,807			445,301			(4	)%		(14	)%
Real estate acquired by foreclosure		106,018			103,982			75,656			67,499			68,613			2	%		55	%
Discontinued assets		—			—			—			—			358			—		NM
Allowance for loan losses		(483,203	)		(342,341	)		(236,611	)		(229,919	)		(220,806	)		41	%		119	%
Other assets		2,293,045			1,949,308			1,874,497			1,654,433			1,935,111			18	%		18	%
Other assets-divestiture (a)		8,759			15,856			22,623			—			—			(45	)%	NM

Total assets	$	37,267,945		$	37,015,461		$	37,478,252		$	38,394,084		$	38,828,766			1	%		(4	)%


Liabilities and Shareholders’ Equity
Deposits
Savings	$	4,217,215		$	3,872,684		$	3,592,732		$	3,520,757		$	3,607,674			9	%		17	%
Other interest-bearing deposits		1,986,556			1,946,933			1,674,624			1,822,076			1,941,422			2	%		2	%
Time deposits		2,648,339			2,826,301			2,822,792			2,885,307			2,876,257			(6	)%		(8	)%
Interest bearing deposits-divestiture (a)		99,370			189,051			361,368			—			—			(47	)%	NM

Total interest-bearing core deposits		8,951,480			8,834,969			8,451,516			8,228,140			8,425,353			1	%		6	%
Noninterest-bearing deposits		4,995,696			5,026,417			4,928,233			5,516,735			5,506,791			(1	)%		(9	)%
Noninterest-bearing deposits-divestiture (a)		18,197			28,750			72,404			—			—			(37	)%	NM

Total core deposits		13,965,373			13,890,136			13,452,153			13,744,875			13,932,144			1	%		*

Certificates of deposit $100,000 and more		2,222,016			3,129,532			5,142,169			8,016,808			8,559,807			(29	)%		(74	)%
Certificates of deposit $100,000 and more -divestiture (a)		1,153			12,617			41,037			—			—			(91	)%	NM

Total deposits		16,188,542			17,032,285			18,635,359			21,761,683			22,491,951			(5	)%		(28	)%

Federal funds purchased and securities sold under agreements to repurchase		3,678,217			4,829,597			4,039,827			3,841,251			3,173,476			(24	)%		16	%
Federal funds purchased and securities sold under agreements to repurchase — divestiture (a)		11,572			20,999			—			—			—			(45	)%	NM
Trading liabilities		531,259			556,144			543,060			658,533			678,796			(4	)%		(22	)%
Commercial paper and other short-term borrowings		4,753,582			3,422,995			2,396,316			246,815			819,768			39	%		480	%
Term borrowings		6,060,795			6,027,967			5,980,513			5,828,138			5,968,789			1	%		2	%
Other collateralized borrowings		809,273			800,450			820,040			821,966			559,226			1	%		45	%

Total long-term debt		6,870,068			6,828,417			6,800,553			6,650,104			6,528,015			1	%		5	%

Capital markets payables		1,688,870			586,358			1,053,349			1,144,029			1,088,340			188	%		55	%
Discontinued liabilities		—			—			—			—			32,608			—		NM
Other liabilities		1,136,461			1,305,868			1,253,295			1,332,910			1,205,859			(13	)%		(6	)%
Other liabilities-divestiture (a)		1,870			1,925			39,389			—			—			(3	)%	NM

Total liabilities		34,860,441			34,584,588			34,761,148			35,635,325			36,018,813			1	%		(3	)%

Preferred stock of subsidiary		295,277			295,277			295,277			295,277			295,277			—			—

Shareholders’ Equity
Common stock		79,242			78,979			78,992			78,898			78,593			*			1	%
Capital surplus		362,823			361,826			360,016			352,138			341,491			*			6	%
Undivided profits		1,704,559			1,742,892			2,048,689			2,120,014			2,155,007			(2	)%		(21	)%
Accumulated other comprehensive (loss)/income, net		(34,397	)		(48,101	)		(65,870	)		(87,568	)		(60,415	)		(28	)%		(43	)%

Total shareholders’ equity		2,112,227			2,135,596			2,421,827			2,463,482			2,514,676			(1	)%		(16	)%

Total liabilities and shareholders’ equity	$	37,267,945		$	37,015,461		$	37,478,252		$	38,394,084		$	38,828,766			1	%		(4	)%


*		Amount is less than one percent

NM — Not meaningful

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



CONSOLIDATED AVERAGE AND PERIOD-END LOANS Quarterly, Unaudited


											1Q08 Change vs.
(Thousands)	1Q08		4Q07		3Q07		2Q07		1Q07		4Q07			1Q07

Average Loans (Net)
Commercial
Commercial, financial and industrial	$	7,121,890	$	6,957,498	$	7,061,103	$	7,292,380	$	7,131,102		2	%		*
Real estate commercial (a)		1,347,377		1,301,866		1,363,363		1,260,196		1,157,711		3	%		16	%
Real estate construction (b)		2,713,253		2,825,210		2,875,296		2,919,522		2,843,263		(4	)%		(5	)%

Total commercial loans		11,182,520		11,084,574		11,299,762		11,472,098		11,132,076		1	%		*

Retail
Real estate residential (c)		7,774,415		7,605,345		7,601,422		7,854,784		7,908,039		2	%		(2	)%
Real estate construction (d)		1,909,061		2,096,561		2,144,902		2,095,021		2,045,952		(9	)%		(7	)%
Other retail		141,961		144,116		149,714		149,976		153,651		(1	)%		(8	)%
Credit card receivables		195,081		201,153		194,376		194,732		195,209		(3	)%		*
Real estate loans pledged against other collateralized borrowings (e)		755,071		779,013		808,247		543,771		572,284		(3	)%		32	%

Total retail loans		10,775,589		10,826,188		10,898,661		10,838,284		10,875,135		*			(1	)%

Total loans, net of unearned income	$	21,958,109	$	21,910,762	$	22,198,423	$	22,310,382	$	22,007,211		*			*


Period-End Loans (Net)
Commercial
Commercial, financial and industrial	$	7,238,630	$	7,140,087	$	6,978,643	$	7,218,582	$	7,371,873		1	%		(2	)%
Real estate commercial (a)		1,345,526		1,294,922		1,326,261		1,389,963		1,144,086		4	%		18	%
Real estate construction (b)		2,602,968		2,753,475		2,828,545		2,830,856		2,931,183		(5	)%		(11	)%

Total commercial loans		11,187,124		11,188,484		11,133,449		11,439,401		11,447,142		*			(2	)%

Retail
Real estate residential (c)		7,858,109		7,791,885		7,544,048		7,614,887		7,856,197		1	%		*
Real estate construction (d)		1,814,863		2,008,289		2,160,593		2,158,775		2,073,293		(10	)%		(12	)%
Other retail		138,253		144,019		144,526		149,157		151,959		(4	)%		(9	)%
Credit card receivables		191,119		204,812		196,967		194,715		187,658		(7	)%		2	%
Real estate loans pledged against other collateralized borrowings (e)		742,552		766,027		793,421		825,368		551,941		(3	)%		35	%

Total retail loans		10,744,896		10,915,032		10,839,555		10,942,902		10,821,048		(2	)%		(1	)%

Total loans, net of unearned income	$	21,932,020	$	22,103,516	$	21,973,004	$	22,382,303	$	22,268,190		(1	)%		(2	)%


*		Amount is less than one percent

(a)		Includes nonconstruction income property loans

(b)		Includes home builder, condominium, and income property construction loans

(c)		Includes home equity loans and lines of credit

(d)		Includes one-time close product

(e)		Includes on balance sheet securitizations of home equity loans



CONSOLIDATED AVERAGE BALANCE SHEET Quarterly, Unaudited


																1Q08 Change vs.
(Thousands)	1Q08			4Q07			3Q07			2Q07			1Q07			4Q07			1Q07

Assets:
Earning assets:
Loans, net of unearned income*	$	21,958,109		$	21,910,762		$	22,198,423		$	22,310,382		$	22,007,211			*	*		*	*
Loans held for sale		3,728,008			3,337,237			3,963,650			4,087,446			3,646,252			12	%		2	%
Loans held for sale-divestiture (a)		248,751			467,424			—			—			—			(47	)%	NM
Investment securities:
U.S. Treasuries		43,305			36,062			151,831			156,865			50,899			20	%		(15	)%
U.S. government agencies		2,725,948			2,787,078			2,836,619			3,005,463			3,513,737			(2	)%		(22	)%
States and municipalities		12,847			1,740			1,750			1,769			1,769			638	%		626	%
Other		232,472			230,808			237,291			232,850			284,625			1	%		(18	)%

Total investment securities		3,014,572			3,055,688			3,227,491			3,396,947			3,851,030			(1	)%		(22	)%

Capital markets securities inventory		1,961,964			1,934,055			1,810,703			2,546,668			2,409,211			1	%		(19	)%
Mortgage banking trading securities		405,579			527,453			545,201			528,457			331,800			(23	)%		22	%
Other earning assets:
Federal funds sold and securities purchased under agreements to resell		1,304,707			1,237,957			1,224,193			1,442,951			1,519,375			5	%		(14	)%
Interest bearing deposits with other financial institutions		46,093			28,968			41,118			32,310			19,666			59	%		134	%

Total other earning assets		1,350,800			1,266,925			1,265,311			1,475,261			1,539,041			7	%		(12	)%

Total earning assets		32,667,783			32,499,544			33,010,779			34,345,161			33,784,545			1	%		(3	)%

Allowance for loan losses		(359,600	)		(246,916	)		(236,188	)		(229,157	)		(223,932	)		46	%		61	%
Cash and due from banks		786,693			846,793			788,636			804,816			845,987			(7	)%		(7	)%
Capital markets receivables		297,908			182,358			141,519			165,433			137,536			63	%		117	%
Premises and equipment, net		390,291			407,212			435,480			443,428			449,283			(4	)%		(13	)%
Other assets		3,367,729			3,540,575			3,613,812			3,540,463			3,653,625			(5	)%		(8	)%
Other assets — divestiture (a)		11,581			20,868			—			—			—			(45	)%	NM

Total assets	$	37,162,385		$	37,250,434		$	37,754,038		$	39,070,144		$	38,647,044			*	*		(4	)%


Liabilities and shareholders’ equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Interest bearing deposits — divestiture (a)	$	127,352		$	292,615		$	—		$	—					$	-(56	)%	NM
Other interest-bearing deposits		1,922,506			1,685,749			1,777,982			1,892,479			1,927,573			14	%		*	*
Savings		4,134,308			3,749,222			3,475,981			3,538,198			3,413,592			10	%		21	%
Time deposits		2,763,335			2,850,719			2,913,872			2,874,932			2,893,963			(3	)%		(5	)%

Total interest-bearing core deposits		8,947,501			8,578,305			8,167,835			8,305,609			8,235,128			4	%		9	%
Certificates of deposit $100,000 and more		2,696,781			4,464,070			6,802,371			8,271,191			8,040,937			(40	)%		(66	)%
Certificates of deposit $100,000 and more — divestiture (a)		4,770			30,499			—			—			—			(84	)%	NM

Federal funds purchased and securities sold under agreements to repurchase		5,236,736			4,936,968			4,964,072			4,967,888			4,505,777			6	%		16	%
Federal funds purchased and securities sold under agreements to repurchase — divestiture (a)		16,171			33,370			—			—			—			(52	)%	NM
Capital markets trading liabilities		846,369			812,969			773,576			1,054,718			1,166,790			4	%		(27	)%
Commercial paper and other short-term borrowings		3,850,704			2,651,882			1,165,801			560,721			987,898			45	%		290	%
Long term debt:
Term borrowings		6,013,433			5,981,215			5,837,370			5,887,063			5,807,925			1	%		4	%
Other collateralized borrowings		790,811			813,075			807,143			550,604			581,030			(3	)%		36	%

Total long-term debt		6,804,244			6,794,290			6,644,513			6,437,667			6,388,955			*	*		7	%

Total interest-bearing liabilities		28,403,276			28,302,353			28,518,168			29,597,794			29,325,485			*	*		(3	)%

Noninterest-bearing deposits		4,743,479			4,838,363			5,096,766			5,304,752			5,104,695			(2	)%		(7	)%
Other noninterest-bearing deposits-divestiture (a)		21,327			54,928			—			—			—			(61	)%	NM
Capital markets payables		292,846			173,351			139,170			182,960			222,607			69	%		32	%
Other liabilities		1,234,695			1,262,345			1,276,262			1,206,237			1,235,077			(2	)%		*	*
Other liabilities-divestiture (a)		2,335			3,885			—			—			—			(40	)%	NM
Preferred stock of subsidiary		295,277			295,277			295,277			295,277			295,277			—			—
Shareholders’ equity		2,169,150			2,319,932			2,428,395			2,483,124			2,463,903			(6	)%		(12	)%

Total liabilities and shareholders’ equity	$	37,162,385		$	37,250,434		$	37,754,038		$	39,070,144		$	38,647,044			*	*		(4	)%


*		Includes loans on nonaccrual status

**		Amount is less than one percent

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


CONSOLIDATED AVERAGE BALANCE SHEET: INCOME & EXPENSE Quarterly, Unaudited


																1Q08 Change vs.
(Thousands)	1Q08			4Q07			3Q07			2Q07			1Q07			4Q07			1Q07

Assets:
Earning assets:
Loans, net of unearned income*	$	331,803		$	385,027		$	413,376		$	413,340		$	410,512			(14	)%		(19	)%
Loans held for sale		58,438			62,249			66,570			65,923			58,845			(6	)%		(1	)%
Investment securities:
U.S. Treasuries		340			434			1,856			1,853			636			(22	)%		(47	)%
U.S. government agencies		37,954			39,027			40,293			42,474			50,221			(3	)%		(24	)%
States and municipalities		220			4			4			4			4		NM			NM
Other		2,290			2,904			2,838			2,776			3,514			(21	)%		(35	)%

Total investment securities		40,804			42,369			44,991			47,107			54,375			(4	)%		(25	)%

Capital markets securities inventory		22,652			25,261			25,321			34,087			30,297			(10	)%		(25	)%
Mortgage banking trading securities		13,363			16,436			16,647			16,029			10,317			(19	)%		30	%
Other earning assets:
Federal funds sold and securities purchased under agreements to resell		9,341			13,485			15,297			18,142			18,821			(31	)%		(50	)%
Interest bearing deposits with other financial institutions		357			450			705			410			260			(21	)%		37	%

Total other earning assets		9,698			13,935			16,002			18,552			19,081			(30	)%		(49	)%

Total earning assets/interest income	$	476,758		$	545,277		$	582,907		$	595,038		$	583,427			(13	)%		(18	)%

Allowance for loan losses
Cash and due from banks
Capital markets receivables
Premises and equipment, net
Other assets

Total assets


Liabilities and shareholders’ equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Other interest-bearing deposits	$	5,906		$	5,976		$	6,179		$	6,808		$	6,889			(1	)%		(14	)%
Savings		25,888			30,864			29,140			29,919			26,031			(16	)%		(1	)%
Time deposits		31,502			35,234			34,745			33,555			33,037			(11	)%		(5	)%

Total interest-bearing core deposits		63,296			72,074			70,064			70,282			65,957			(12	)%		(4	)%
Certificates of deposit $100,000 and more		31,069			59,851			92,556			110,630			106,276			(48	)%		(71	)%

Federal funds purchased and securities sold under agreements to repurchase		38,521			52,635			60,287			61,745			54,379			(27	)%		(29	)%
Capital markets trading liabilities		9,615			10,588			10,295			14,272			16,361			(9	)%		(41	)%
Commercial paper and other short-term borrowings		31,527			30,229			14,827			7,187			12,785			4	%		147	%
Long term debt:
Term borrowings		66,303			82,870			85,241			83,529			81,834			(20	)%		(19	)%
Other collateralized borrowings		8,020			10,902			11,661			7,826			8,174			(26	)%		(2	)%

Total long-term debt		74,323			93,772			96,902			91,355			90,008			(21	)%		(17	)%

Total interest-bearing liabilities/interest expense	$	248,351		$	319,149		$	344,931		$	355,471		$	345,766			(22	)%		(28	)%

Noninterest-bearing deposits
Capital markets payables
Other liabilities
Preferred stock of subsidiary
Shareholders’ equity

Total liabilities and shareholders’ equity

Net interest income-tax equivalent basis	$	228,407		$	226,128		$	237,976		$	239,567		$	237,661			1	%		(4	)%
Fully taxable equivalent adjustment		(315	)		(141	)		(172	)		(135	)		(242	)		123	%		30	%

Net interest income	$	228,092		$	225,987		$	237,804		$	239,432		$	237,419			1	%		(4	)%

* Includes loans on nonaccrual status

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

NM — Not meaningful



CONSOLIDATED AVERAGE BALANCE SHEET: YIELDS & RATES Quarterly, Unaudited


(Thousands)	1Q08			4Q07			3Q07			2Q07			1Q07

Assets:
Earning assets:
Loans, net of unearned income*		6.07	%		6.98	%		7.39	%		7.43	%		7.56	%
Loans held for sale		5.88			6.54			6.72			6.45			6.46
Investment securities:
U.S. Treasuries		3.15			4.77			4.85			4.74			5.06
U.S. government agencies		5.57			5.60			5.68			5.65			5.72
States and municipalities		6.87			.82			.83			.98			.97
Other		3.94			5.03			4.78			4.77			4.94

Total investment securities		5.41			5.55			5.57			5.55			5.65

Capital markets securities inventory		4.62			5.22			5.59			5.35			5.03
Mortgage banking trading securities		13.18			12.46			12.21			12.13			12.44
Other earning assets:
Federal funds sold and securities purchased under agreements to resell		2.88			4.32			4.96			5.04			5.02
Interest bearing deposits with other financial institutions		3.11			6.17			6.80			5.10			5.35

Total other earning assets		2.89			4.36			5.02			5.04			5.03

Total earning assets/interest income		5.86	%		6.67	%		7.02	%		6.94	%		6.97	%

Allowance for loan losses
Cash and due from banks
Capital markets receivables
Premises and equipment, net
Other assets

Total assets


Liabilities and shareholders’ equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Other interest-bearing deposits		1.19	%		1.33	%		1.38	%		1.44	%		1.45	%
Savings		2.50			3.19			3.33			3.39			3.09
Time deposits		4.55			4.73			4.73			4.68			4.63

Total interest-bearing core deposits		2.85			3.33			3.40			3.39			3.25
Certificates of deposit $100,000 and more		4.63			5.28			5.40			5.36			5.36

Federal funds purchased and securities sold under agreements to repurchase		2.95			4.20			4.82			4.99			4.89
Capital markets trading liabilities		4.57			5.17			5.28			5.43			5.69
Commercial paper and other short-term borrowings		3.29			4.52			5.05			5.14			5.25
Long term debt:
Term borrowings		4.41			5.55			5.85			5.68			5.64
Other collateralized borrowings		4.06			5.36			5.78			5.69			5.63

Total long-term debt		4.37			5.52			5.84			5.68			5.64

Total interest-bearing liabilities/interest expense		3.51	%		4.49	%		4.81	%		4.81	%		4.77	%

Noninterest-bearing deposits
Capital markets payables
Other liabilities
Other liabilities - divestiture
Preferred stock of subsidiary
Shareholders’ equity

Total liabilities and shareholders’ equity

Net interest spread		2.35	%		2.18	%		2.21	%		2.13	%		2.20	%
Effect of interest-free sources used to fund earning assets		.46			.59			.66			.66			.64

Net interest margin		2.81	%		2.77	%		2.87	%		2.79	%		2.84	%

* Includes loans on nonaccrual status

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

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

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



MORTGAGE SERVICING RIGHTS Quarterly, Unaudited


																1Q08 Change vs.
(Thousands)	1Q08			4Q07			3Q07			2Q07			1Q07			4Q07			1Q07

First Liens
Fair value beginning balance	$	1,122,415		$	1,429,245		$	1,481,727		$	1,500,337		$	1,495,215			(21	)%		(25	)%
Addition of mortgage servicing rights		78,871			67,300			97,084			100,550			84,707
Reductions due to loan payments		(37,448	)		(40,930	)		(48,964	)		(62,661	)		(61,698	)
Reductions due to sale		(43,842	)		(96,502	)		—			—			—
Changes in fair value due to:
Changes in valuation model inputs or assumptions (a)		(254,076	)		(236,695	)		(100,602	)		118,048			(17,833	)
Reclassification to trading assets		—			—			—			(174,547	)		—
Other changes in fair value		(65	)		(3	)		—			—			(54	)

Fair value ending balance	$	865,855		$	1,122,415		$	1,429,245		$	1,481,727		$	1,500,337			(23	)%		(42	)%


Second Liens
Fair value beginning balance	$	25,832		$	28,747		$	27,608		$	25,710		$	24,091			(10	)%		7	%
Addition of mortgage servicing rights		—			—			3,587			3,997			3,998
Reductions due to loan payments		(2,617	)		(2,097	)		(2,559	)		(2,169	)		(2,378	)
Changes in fair value due to:
Changes in valuation model inputs or assumptions (a)		(3,089	)		(834	)		32			67			(1	)
Other changes in fair value		—			16			79			3			—

Fair value ending balance	$	20,126		$	25,832		$	28,747		$	27,608		$	25,710			(22	)%		(22	)%


HELOC
Fair value beginning balance	$	11,573		$	12,597		$	13,631		$	13,994		$	14,636			(8	)%		(21	)%
Addition of mortgage servicing rights		887			174			87			791			1,041
Reductions due to loan payments		(707	)		(736	)		(1,124	)		(1,154	)		(1,683	)
Changes in fair value due to:
Changes in valuation model inputs or assumptions (a)		(1,935	)		(462	)		(39	)		—			—
Other changes in fair value		124			—			42			—			—

Fair value ending balance	$	9,942		$	11,573		$	12,597		$	13,631		$	13,994			(14	)%		(29	)%


Total Consolidated
Fair value beginning balance	$	1,159,820		$	1,470,589		$	1,522,966		$	1,540,041		$	1,533,942			(21	)%		(24	)%
Addition of mortgage servicing rights		79,758			67,474			100,758			105,338			89,746
Reductions due to loan payments		(40,772	)		(43,763	)		(52,647	)		(65,984	)		(65,759	)
Reductions due to sale		(43,842	)		(96,502	)		—			—			—
Changes in fair value due to:
Changes in valuation model inputs or assumptions (a)		(259,100	)		(237,991	)		(100,609	)		118,115			(17,834	)
Reclassification to trading assets		—			—			—			(174,547	)		—
Other changes in fair value		59			13			121			3			(54	)

Fair value ending balance	$	895,923		$	1,159,820		$	1,470,589		$	1,522,966		$	1,540,041			(23	)%		(42	)%

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


BUSINESS SEGMENT HIGHLIGHTS Quarterly, Unaudited


																1Q08 Change vs.
(Thousands)	1Q08			4Q07			3Q07			2Q07			1Q07			4Q07			1Q07

Regional Banking
Total revenues(a)	$	207,628		$	229,118		$	228,572		$	229,301		$	227,556			(9	)%		(9	)%
Provision for loan losses		75,264			15,831			18,523			14,071			14,204			375	%		430	%
Noninterest expenses		150,520			159,880			153,814			161,336			156,319			(6	)%		(4	)%

Pre-tax (loss)/income		(18,156	)		53,407			56,235			53,894			57,033		NM			NM
(Benefit)/provision for income taxes		(13,542	)		27,024			19,797			11,826			14,620		NM			NM

Net (loss)/income from continuing operations		(4,614	)		26,383			36,438			42,068			42,413		NM			NM
Income from discontinued operations, net of tax		883			4,137			209			179			240			(79	)%		268	%

Net (loss)/income	$	(3,731	)	$	30,520		$	36,647		$	42,247		$	42,653		NM			NM


Capital Markets
Total revenues(a)	$	153,579		$	119,191		$	78,622		$	106,690		$	102,037			29	%		51	%
Provision for loan losses		15,031			1,244			2,018			3,673			1,162		NM			NM
Noninterest expenses		115,728			87,042			73,921			80,480			86,619			33	%		34	%

Pre-tax income		22,820			30,905			2,683			22,537			14,256			(26	)%		60	%
Provision for income taxes		8,437			11,572			900			8,411			5,287			(27	)%		60	%

Net income	$	14,383		$	19,333		$	1,783		$	14,126		$	8,969			(26	)%		60	%


National Specialty Lending
Total revenues(a)	$	54,494		$	54,328		$	62,419		$	71,886		$	76,555				*		(29	)%
Provision for loan losses		149,483			139,398			22,807			19,104			13,127			7	%	NM
Noninterest expenses		25,149			31,069			33,624			38,212			35,179			(19	)%		(29	)%

Pre-tax (loss)/income		(120,138	)		(116,139	)		5,988			14,570			28,249		NM			NM
(Benefit)/provision for income taxes		(46,589	)		(43,857	)		1,811			5,987			9,882		NM			NM

Net (loss)/income	$	(73,549	)	$	(72,282	)	$	4,177		$	8,583		$	18,367		NM			NM


Mortgage Lending
Total revenues(a)	$	199,026		$	(79,826	)	$	69,059		$	103,327		$	97,305		NM				105	%
Provision for loan losses		222			46			4			(112	)		(7	)		383	%	NM
Noninterest expenses		147,543			174,203			108,303			115,461			105,240			(15	)%		40	%

Pre-tax income/(loss)		51,261			(254,075	)		(39,248	)		(12,022	)		(7,928	)	NM			NM
Provision/(benefit) for income taxes		18,513			(99,185	)		(13,984	)		(6,854	)		(10,433	)	NM			NM

Net income/(loss)	$	32,748		$	(154,890	)	$	(25,264	)	$	(5,168	)	$	2,505		NM			NM


Corporate
Total revenues(a)	$	62,441		$	(3,837	)	$	2,607		$	8,527		$	17,154		NM				264	%
Provision for loan losses		—			—			—			7,672			—		NM			NM
Noninterest expenses		(663	)		109,365			51,960			61,751			19,655		NM			NM

Pre-tax income/(loss)		63,104			(113,202	)		(49,353	)		(60,896	)		(2,501	)	NM			NM
Provision/(benefit) for income taxes		25,035			(41,896	)		(17,854	)		(23,231	)		(554	)	NM			NM

Net income/(loss)	$	38,069		$	(71,306	)	$	(31,499	)	$	(37,665	)	$	(1,947	)	NM			NM


Total Consolidated
Total revenues(a)	$	677,168		$	318,974		$	441,279		$	519,731		$	520,607			112	%		30	%
Provision for loan losses		240,000			156,519			43,352			44,408			28,486			53	%		743	%
Noninterest expenses		438,277			561,559			421,622			457,240			403,012			(22	)%		9	%

Pre-tax (loss)/income		(1,109	)		(399,104	)		(23,695	)		18,083			89,109		NM			NM
(Benefit)/provision for income taxes		(8,146	)		(146,342	)		(9,330	)		(3,861	)		18,802		NM			NM

Net income/(loss) from continuing operations		7,037			(252,762	)		(14,365	)		21,944			70,307		NM				(90	)%
Income from discontinued operations, net of tax		883			4,137			209			179			240			(79	)%		268	%

Net income/(loss)	$	7,920		$	(248,625	)	$	(14,156	)	$	22,123		$	70,547		NM				(89	)%

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

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

NM — Not meaningful

*		Amount is less than one percent


CAPITAL HIGHLIGHTS Quarterly, Unaudited


																1Q08 Change vs.
(Dollars in millions, except per share amounts)	1Q08			4Q07			3Q07			2Q07			1Q07			4Q07			1Q07

Tier 1 Capital (a)	$	2,443.6		$	2,459.5		$	2,666.8		$	2,711.3		$	2,739.1			(1	)%		(11	)%
Tier 2 Capital (a)		1,424.7			1,400.5			1,321.4			1,316.2			1,324.0			2	%		8	%

Total Capital (a)	$	3,868.3		$	3,860.0		$	3,988.2		$	4,027.5		$	4,063.1			*			(5	)%


Risk-Adjusted Assets (a)	$	30,179.4		$	30,271.9		$	31,041.9		$	31,224.1		$	31,368.0			*			(4	)%

Tier 1 Ratio (a)		8.10	%		8.12	%		8.59	%		8.68	%		8.73	%
Tier 2 Ratio (a)		4.72			4.63			4.26			4.22			4.22

Total Capital Ratio (a)		12.82	%		12.75	%		12.85	%		12.90	%		12.95	%


Leverage Ratio (a)		6.62	%		6.64	%		7.12	%		7.00	%		7.15	%
Shareholders’ Equity/Assets Ratio (b)		5.67			5.77			6.46			6.42			6.48
Tangible Equity/RWA (a)		6.08			6.16			6.75			6.86			6.91

Tangible Book Value	$	14.67		$	14.86		$	16.51		$	16.73		$	17.22
Book Value		16.59			16.83			19.08			19.43			19.88

NM — Not meaningful

*		Amount is less than one percent.

(a)		Current quarter is an estimate

(b)		Calculated on period-end balances

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


ASSET QUALITY: CONSOLIDATED Quarterly, Unaudited


																1Q08 Change vs.
(Thousands)	1Q08			4Q07			3Q07			2Q07			1Q07			4Q07			1Q07

Allowance for Loan Losses Walk-Forward
Beginning Reserve	$	342,341		$	236,611		$	229,919		$	220,806		$	216,285			45	%		58	%
Provision		240,000			156,519			43,352			44,408			28,486			53	%		743	%
Divestitures/acquisitions/transfers		—			4			(5,276	)		(12,326	)		2,655		NM			NM
Charge-offs		(101,756	)		(54,891	)		(35,858	)		(26,493	)		(29,665	)		85	%		243	%
Recoveries		2,618			4,098			4,474			3,524			3,045			(36	)%		(14	)%

Ending Balance	$	483,203		$	342,341		$	236,611		$	229,919		$	220,806			41	%		119	%

Reserve for off-balance sheet commitments		11,786			10,726			9,002			10,494			9,406			10	%		25	%
Total allowance for loan losses plus reserve	$	494,989		$	353,067		$	245,613		$	240,413		$	230,212			40	%		115	%


Allowance for Loan Losses
Regional Banking	$	184,472		$	139,150		$	135,736		$	137,237		$	135,938			33	%		36	%
Capital Markets		24,338			13,522			15,072			15,738			14,369			80	%		69	%
National Specialty Lending		273,127			188,550			84,787			75,941			69,517			45	%		293	%
Mortgage Banking		1,266			1,119			1,016			1,003			982			13	%		29	%

Total allowance for loan losses	$	483,203		$	342,341		$	236,611		$	229,919		$	220,806			41	%		119	%


Non-Performing Assets
Regional Banking
Nonperforming loans	$	81,244		$	30,608		$	37,102		$	20,692		$	26,212			165	%		210	%
Foreclosed real estate		38,019			35,026			27,214			27,289			27,204			9	%		40	%

Total Regional Banking		119,263			65,634			64,316			47,981			53,416			82	%		123	%

Capital Markets
Nonperforming loans		13,030			8,970			10,051			11,921			3,598			45	%		262	%
Foreclosed real estate		600			810			810			810			810			(26	)%		(26	)%

Total Capital Markets		13,630			9,780			10,861			12,731			4,408			39	%		209	%

National Specialty Lending
Nonperforming loans		433,285			243,711			142,645			95,411			43,810			78	%		889	%
Foreclosed real estate		29,680			34,120			18,030			14,276			12,040			(13	)%		147	%

Total National Specialty Lending		462,965			277,831			160,675			109,687			55,850			67	%		729	%

Mortgage Banking
Nonperforming loans — held for sale		9,693			23,797			18,508			12,484			10,347			(59	)%		(6	)%
Foreclosed real estate		15,373			15,385			13,992			11,214			11,904			*			29	%

Total Mortgage Banking		25,066			39,182			32,500			23,698			22,251			(36	)%		13	%

Total nonperforming assets	$	620,924		$	392,427		$	268,352		$	194,097		$	135,925			58	%		357	%


Net Charge-Offs
Regional Banking	$	29,942		$	12,421		$	14,748		$	12,772		$	18,472			141	%		62	%
Capital Markets		4,215			2,794			2,684			2,304			(32	)		51	%	NM
National Specialty Lending		64,906			35,635			13,961			8,026			8,181			82	%		693	%
Mortgage Banking		75			(57	)		(9	)		(133	)		(1	)		(232	)%	NM

Total net charge-offs	$	99,138		$	50,793		$	31,384		$	22,969		$	26,620			95	%		272	%


Consolidated Key Ratios
NPL % (a)		2.41	%		1.28	%		.86	%		.57	%		.33	%
NPA % (b)		2.78			1.66			1.13			.81			.56
Net charge-offs % (c)		1.81			.93			.57			.41			.48
Allowance / Loans		2.20			1.55			1.08			1.03			.99
Allowance to loans excluding insured loans		2.26			1.62			1.12			1.07			1.03
Allowance / NPL (d)		.92x			1.21	x		1.25	x		1.80	x		3.00	x
Allowance / NPA (e)		.79x			.93	x		.95	x		1.27	x		1.76	x
Allowance / Charge-offs (f)		1.22x			1.68	x		1.88	x		2.50	x		2.07	x


Other
Loans past due 90 days or more (g)	$	300,185		$	251,509		$	206,660		$	171,027		$	169,840			19	%		77	%
Guaranteed portion (g)		223,572			190,899			158,780			130,858			123,461			17	%		81	%
Foreclosed real estate from GNMA loans		22,346			18,642			15,610			13,910			16,655			20	%		34	%

Period-end loans, net of unearned income (millions)	$	21,932		$	22,104		$	21,973		$	22,382		$	22,268			(1	)%		(2	)%
Insured loans		596			913			928			987			847			(35	)%		(30	)%

Total loans excluding insured loans	$	21,336		$	21,191		$	21,045		$	21,395		$	21,421			1	%		*

Off-balance sheet commitments (millions) (h)	$	6,826		$	6,929		$	7,106		$	7,202		$	7,586			(1	)%		(10	)%

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

NM — Not meaningful

*		Amount is less than one percent

(a)		Ratio is nonperforming loans in the loan portfolio to total loans

(b)		Ratio is nonperforming assets related to the loan portfolio to total loans plus foreclosed real estate and other assets

(c)		Ratio is annualized net charge-offs to average total loans

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

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

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

(g)		Includes loans held for sale.

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


ASSET QUALITY: CONSOLIDATED Quarterly, Unaudited


																1Q08 Change vs.
	1Q08			4Q07			3Q07			2Q07			1Q07			4Q07			1Q07

Key Portfolio Details
Commercial (C&I & Other)
Period-end loans ($ millions)	$	7,225		$	6,969		$	7,189		$	7,162		$	7,294			4	%		(1	)%

30+ Delinq. %		.93	%		.50	%		.41	%		.66	%		.50	%
NPL %		.64			.24			.33			.31			.45
Charge-offs % (qtr. annualized)		.83			.20			.57			.45			.55

Allowance / Loans %		1.59	%
Allowance / NPL		2.51	x
Allowance / Charge-offs		2.31	x


Income CRE (Income-producing Commercial Real Estate)
Period-end loans ($ millions)	$	1,982		$	1,948		$	1,970		$	1,921		$	1,799			2	%		10	%

30+ Delinq. %		.57	%		1.96	%		.86	%		.38	%		.07	%
NPL %		2.01			.27			.06			.06			.09
Charge-offs % (qtr. annualized)		1.94			.13			.12			.04			.01

Allowance / Loans %		2.47	%
Allowance / NPL		1.23	x
Allowance / Charge-offs		1.28	x


Residential CRE (Homebuilder and Condominium Construction)
Period-end loans ($ millions)	$	1,980		$	2,093		$	2,211		$	2,271		$	2,264			(5	)%		(13	)%

30+ Delinq. %		2.73	%		3.56	%		1.25	%		1.96	%		.82	%
NPL %		12.07			6.43			3.93			1.67			.41
Charge-offs % (qtr. annualized)		5.93			3.82			.51			.29			.43

Allowance / Loans %		3.64	%
Allowance / NPL		.30	x
Allowance / Charge-offs		.58	x


Consumer Real Estate (Home Equity Installment and HELOC)
Period-end loans ($ millions)	$	7,964		$	8,182		$	7,648		$	8,064		$	8,020			(3	)%		(1	)%

30+ Delinq. %		1.55	%		1.43	%		1.25	%		1.01	%		.94	%
NPL %		.11			.09			.09			.09			.06
Charge-offs % (qtr. annualized)		.93			.62			.37			.37			.32

Allowance / Loans %		1.19	%
Allowance / NPL		10.38	x
Allowance / Charge-offs		1.28	x


OTC (Consumer Residential Construction Loans)
Period-end loans ($ millions)	$	1,815		$	2,008		$	2,160		$	2,157		$	2,073			(10	)%		(12	)%

30+ Delinq. %		2.67	%		2.50	%		1.91	%		1.08	%		1.73	%
NPL %		10.95			5.68			3.21			2.60			1.41
Charge-offs % (qtr. annualized)		4.63			2.18			1.16			.68			.14

Allowance / Loans %		6.49	%
Allowance / NPL		.59	x
Allowance / Charge-offs		1.33	x


Other Consumer, Permanent Mortgage, and Credit Card
Period-end loans ($ millions)	$	966		$	904		$	795		$	807		$	818			7	%		18	%

30+ Delinq. %		5.94	%		4.45	%		1.73	%		1.61	%		1.84	%
NPL %		1.96			.31			.21			.19			.10
Charge-offs % (qtr. annualized)		1.69			.96			.90			.93			.76

Allowance / Loans %		1.51	%
Allowance / NPL		.07	x
Allowance / Charge-offs		.89	x