Exhibit 99.1

FOURTH QUARTER 2004
FINANCIAL SUPPLEMENT
CONSOLIDATED SUMMARY
Quarterly, Unaudited
(Thousands)  4Q04  3Q04  2Q04  1Q04  4Q03
Net interest income $228,446 $218,250 $213,606 $196,009 $196,442
Noninterest income 313,682 307,231 347,285 367,240 364,052
Divestitures                   3,200                          - 1,800 2,000                 22,498
Security G/L (3,734) 20,383 3,214 885 8
Total revenue 541,594 545,864 565,905 566,134 583,000
Noninterest expense 382,688 365,596 384,080 371,976 382,004
Provision 11,783 10,044 12,292 14,229 15,392
Pretax income 147,123 170,224 169,533 179,929 185,604
Income taxes 43,971 56,623 51,149 60,658 67,959
Net income 103,152 113,601 118,384 119,271 117,645
       
Diluted shares   127,719 127,845 128,497 129,698 130,755
EPS   $0.81 $0.89 $0.92 $0.92 $0.90
Tax rate   30% 33% 30% 34% 37%
Efficiency ratio 71% 67% 68% 66% 66%
                 
Certain previously reported amounts have been reclassified to agree with current presentation.

1
STATEMENTS OF INCOME
Quarterly, Unaudited
(Thousands)  4Q04  3Q04  2Q04  1Q04  4Q03
  - - - - -
Interest income $334,789 $300,183 $277,815 $254,015 $253,184
Less interest expense 106,343 81,933 64,209 58,006 56,742
  - - - - -
  Net interest income 228,446 218,250 213,606 196,009 196,442
     
Provision for loan losses 11,783 10,044 12,292 14,229 15,392
  - - - - -
  Net interest income after    
     
  provision for loan losses 216,663 208,206 201,314 181,780 181,050
     
Noninterest income:    
  Mortgage banking 94,771 105,155 118,266 126,566 127,330
  Capital markets 76,522 79,913 102,195 117,928 117,770
  Deposit transactions    
  and cash management 37,695 38,624 38,234 33,961 37,971
  Merchant processing 19,679 19,299 19,365 16,743 15,878
  Insurance premiums and    
  commissions 11,649 13,962 14,104 16,394 13,698
     
  Trust services and investment    
  management 11,741 11,838 11,891 11,804 11,654
  Gains on divestitures                   3,200                          -                   1,800                   2,000                 22,498
  Securities gains/(losses) (3,734) 20,383 3,214 885 8
     
  Other   61,625 38,440 43,230 43,844 39,751
Total noninterest income 313,148 327,614 352,299 370,125 386,558
  Adjusted gross income after    
  provision for loan losses 529,811 535,820 553,613 551,905 567,608
Noninterest expense:    
  Employee compensation,    
  incentives and benefits 228,206 210,089 238,402 238,250 218,968
  Occupancy 22,875 23,865 21,699 20,963 21,569
  Equipment rentals, depreciation,    
  and maintenance 18,633 18,713 17,573 17,776 17,957
  Operations services 18,379 17,801 15,944 15,399 15,160
  Communications and courier 12,446 12,118 13,223 11,803 13,324
  Amortization of intangible assets 3,014 2,165 2,191 2,171 2,403
  Other 79,135 80,845 75,048 65,614 92,623
Total noninterest expense 382,688 365,596 384,080 371,976 382,004
  - - - - -
Pretax income 147,123 170,224 169,533 179,929 185,604
     
  Applicable income taxes 43,971 56,623 51,149 60,658 67,959
  - - - - -
Net income $103,152 $113,601 $118,384 $119,271 $117,645
     
  = = = = =
   
     
         
     
     
     
                 
Diluted earnings per common share $        .81 $        .89 $        .92 $        .92 $        .90
Dividends declared        .43        .40        .40        .40        .40
       
SELECTED FINANCIAL RATIOS:      
Return on average assets 1.40% 1.63% 1.75% 1.93% 1.89%
Return on average shareholders' equity                   20.8                     23.7                     25.5                     25.6                     25.2  
Certain previously reported amounts have been reclassified to agree with current presentation.

2
OTHER INCOME AND OTHER EXPENSE
Quarterly, Unaudited
(Thousands)  4Q04  3Q04  2Q04  1Q04  4Q03
All other income and commissions:    
Cardholder fees  $  6,405  $  6,461  $  6,348  $    5,861  $    6,129
Other service charges                  5,270 4,696 5,098 4,645 5,002
Check clearing fees                  2,340 2,562 2,523 2,627 2,913
Other                47,610 24,721 29,261 30,711 25,707
Total      $61,625  $38,440  $43,230  $  43,844  $  39,751
All other expense:    
Advertising and public relations  $  8,585  $9,976  $9,527  $    11,873  $  10,425
Legal and professional fees                11,816 9,529 9,700 6,685 14,979
Travel and entertainment                  8,684 7,983 7,044 7,083 9,669
Computer software                  7,199 7,127 7,596 6,984 8,180
Contract employment                  7,877 6,264 5,430 4,143 6,769
Supplies                  4,399 4,187 4,545 4,460 4,819
Fed services fees                  1,979 2,263 2,267 2,329 2,190
Deposit insurance premium                     923 661 708 732 682
Foreclosed real estate                  2,759 2,072 977 26 2,169
Contributions                     339 414 494 250 373
Distributions on guaranteed    
          preferred securities (a) - - - - 2,017
Other                    24,575 30,369 26,760 21,049 30,351
Total                    79,135                80,845                75,048                65,614 92,623
(a) On December 31, 2003, FHN adopted FIN 46 which required the deconsolidation of Capital I and consequently the guaranteed preferred securities. However, FHN's junior subordinated debentures are no longer eliminated in consolidation but are included in the Consolidated Statements of Condition in "Term borrowings" and the related expense is also no longer eliminated in consolidation and is classified as interest expense in 2004.
Certain previously reported amounts have been reclassified to agree with current presentation.

3
AVERAGE STATEMENTS OF CONDITION
Quarterly, Unaudited
(Millions)  4Q04 3Q04 2Q04 1Q04 4Q03
Loans, net of unearned income:    
  Commercial:    
  Commercial, financial and industrial $  5,213.6 $  4,935.3 $  4,736.6 $  4,491.6 $  4,450.3
  Real estate commercial 929.7 960.2 965.1 982.6 1,046.9
    Real estate construction 1,132.1 945.1 796.6 705.6 672.9
   Total commercial loans 7,275.4 6,840.6 6,498.3 6,179.8 6,170.1
  Retail:    
  Real estate residential 8,204.5 7,852.6 7,253.7 6,810.6 6,552.6
  Real estate construction 939.8 746.1 619.1 550.5 495.8
  Other retail 172.6 180.0 188.7 204.0 239.1
    Credit card receivables 244.1 239.3 258.4 259.3 265.0
     Total retail loans 9,561.0 9,018.0 8,319.9 7,824.4 7,552.5
  Total loans, net of unearned income 16,836.4 15,858.6 14,818.2 14,004.2 13,722.6
Investment securities 2,150.6 2,625.7 2,474.6 2,546.7 2,599.0
REMIC securities (a)                    -                      -                      -                      -   42.3
Loans held for sale 4,696.1 4,036.7 4,689.7 3,290.9 2,672.5
Other earning assets 1,895.7 1,687.7 1,658.0 1,577.7 1,810.6
  Total earning assets 25,578.8 24,208.7 23,640.5 21,419.5 20,847.0
Cash and due from banks 779.2 740.0 718.4 718.7 746.2
Other assets 2,951.9 2,767.9 2,917.4 2,755.8 3,037.3
  Total assets $29,309.9 $27,716.6 $27,276.3 $24,894.0 $24,630.5
     
Certificates of deposit under    
  $100,000 and other time $  2,065.8 $  2,015.0 $  1,880.6 $  1,824.6 $  1,855.8
Other interest-bearing deposits 4,228.4 4,128.6 4,146.7 4,055.1 4,061.4
  Total interest-bearing core deposits 6,294.2 6,143.6 6,027.3 5,879.7 5,917.2
Demand deposits 1,879.7 1,741.6 1,809.1 1,791.9 2,011.9
Other noninterest-bearing deposits 3,034.0 2,800.6 3,091.0 2,544.1 2,563.8
  Total core deposits 11,207.9 10,685.8 10,927.4 10,215.7 10,492.9
Certificates of deposit $100,000 and more 8,079.0 6,971.1 6,580.7 5,856.3 5,175.1
     Total deposits 19,286.9 17,656.9 17,508.1 16,072.0 15,668.0
Short-term borrowed funds 4,441.6 4,550.3 4,183.4 4,017.5 4,238.6
Term borrowings (a) 2,385.1 2,340.6 2,442.0 1,821.8 1,552.0
Other liabilities           1,222.6 1,262.8 1,271.4 1,110.6 1,218.3
Qualifying capital securities (a) (b)                    -                      -                      -                      -   100.0
Preferred stock of subsidiary                    .5                    .5                    .5                    .4                    .4
Shareholders' equity 1,973.2 1,905.5 1,870.9 1,871.7 1,853.2
  Total liabilities and shareholders' equity $29,309.9 $27,716.6 $27,276.3 $24,894.0 $24,630.5
Diluted shares outstanding 127.7 127.8 128.5 129.7 130.8
(a)  See page 13 for additional information on the impact of certain transactions and new accounting standards.
(b)  Guaranteed preferred beneficial interests in FHN's junior subordinated debentures
Certain previously reported amounts have been reclassified to agree with current presentation.

4
RETAIL/COMMERCIAL BANKING
Quarterly, Unaudited
(Thousands)  4Q04   3Q04   2Q04   1Q04   4Q03 
Net interest income $193,886  $179,862  $167,331  $158,102  $157,888 
Noninterest income 127,466           114,461  119,407  113,980  108,492 
Divestitures              3,200  -  1,800  2,000             22,498 
Security G/L                   (1) 637  303  2  8 
Total revenue 324,551  294,960  288,841  274,084  288,886 
Total noninterest expense 191,551  180,250  177,235  172,224  186,280 
Provision 11,798  10,044  12,310  14,249  15,333 
Pretax income 121,202  104,666  99,296  87,611  87,273 
         
Efficiency ratio 59% 61% 61% 63% 64%
       
Average loans (millions) $16,792  $15,827  $14,798  $13,988  $13,697 
Other earning assets (millions) 1,206  882  896  598  274 
  Total earning assets (millions) 17,998  16,709  15,694  14,586  13,971 
       
Total deposits 10,146  9,817  9,660  9,425  9,570 
       
Net interest margin 4.29% 4.28% 4.29% 4.36% 4.48%
       
       
Noninterest revenue detail          
Deposit transactions & cash mgmt $37,694  $38,622  $38,233  $33,960  $37,947 
Merchant processing 19,683  19,304  19,369  16,748  15,882 
Insurance premium & commissions 11,206  13,539  13,674  15,961  13,189 
Trust services & investment mgmt 11,741  11,837  11,891  11,804  11,655 
Cardholder fees 6,252  6,332  6,301  5,696  6,034 
Other service charges 4,900  4,378  4,802  4,446  4,811 
Check clearing fees 2,340  2,562  2,523  2,627  2,913 
Securitization revenue 15,835  359  2,822  4,966  - 
Miscellaneous revenue 17,815  17,528  19,792  17,772  16,061 
Total noninterest revenue 127,466  114,461  119,407  113,980  108,492 
       
Statistics      
Trust total assets (millions)(a)  12,222  12,327  12,154  12,103  11,945 
Trust total managed assets (millions)(a) 7,603  7,463  7,539  7,668  7,542 
Merchant transactions 39,347  40,480  39,340  38,329  33,345 
(a)  Current quarter is an estimate
Certain previously reported amounts have been reclassified to agree with current presentation.

5
MORTGAGE BANKING
Quarterly, Unaudited
(Thousands)  4Q04  3Q04  2Q04  1Q04  4Q03
Net interest income $38,858 $37,758 $44,352 $32,400 $31,232
Noninterest income:        
       Net origination fees 76,567 68,375 99,101 95,802 73,565
       Net servicing fees 15,382 25,560 14,407 28,447 48,459
       Other fees 9,901 15,291 9,549 6,593 9,584
Total noninterest income 101,850 109,226 123,057 130,842 131,608
Total revenue 140,708 146,984 167,409 163,242 162,840
Noninterest expense 110,736 109,255 118,711 99,664 95,020
Provision (15) - (18) (20) 59
Pretax income 29,987 37,729 48,716 63,598 67,761
         
Noninterest expense detail      
Commissions & incentives $67,930 $60,891 $69,026 49,590 46,067
FAS 91 cost deferral (6,315) 2,195 (594) (4,040) 1,484
Other salaries & benefits 63,429 54,694 54,931 54,206 50,432
  Total salaries & benefits 125,044 117,780 123,363 99,756 97,983
Contract labor & outsourcing 4,688 4,210 4,234 3,395 5,169
Equipment & occupancy 16,837 17,717 16,163 16,295 15,978
Foreclosure provision 2,418 1,757 617 (1,039) 1,992
Other expenses 32,927 50,593 44,367 39,579 42,243
Total expenses before FAS 91 reclass 181,914 192,057 188,744 157,986 163,365
FAS 91 reclassification (74,881) (86,706) (74,414) (62,044) (69,428)
Total Noninterest Expense Before      
        Segment Allocations 107,033 105,351 114,330 95,942 93,937
Segment Allocations 3,703 3,904 4,381 3,722 1,083
 Total Noninterest Expense 110,736 109,255 118,711 99,664 95,020
       
Other information      
Efficiency ratio 79% 74% 71% 61% 58%
       
Warehouse (millions) $3,543 $3,217 $3,858 $2,742 $2,614
Other earning assets (millions) 318 287 250 228 241
  Total earning assets (millions) 3,861 3,504 4,108 2,970 2,855
       
Escrow balances 1,608 1,419 1,819 1,286 1,419
       
Net interest margin 4.00% 4.29% 4.34% 4.39% 4.34%
       
Warehouse Spread 3.58% 3.93% 3.84% 3.91% 3.73%
                 
Certain previously reported amounts have been reclassified to agree with current presentation.

6
MORTGAGE BANKING
Quarterly, Unaudited
(Thousands)    4Q04   3Q04   2Q04   1Q04   4Q03 
ORIGINATION INCOME      
Origination Fees $79,235  $82,425  $96,270  $71,737  $64,210 
FAS 91 Fee Deferral            (3,192)              2,966                  474             (3,939)                 742 
Appraisal, Final Inspection,       
     Credit Report Fees              7,142               7,335               8,345               6,138               6,178 
  Total origination fees              83,185             92,726           105,089             73,936             71,130 
       
Secondary Marketing Income:      
OMSR             62,462             58,120           103,186             52,419             62,621 
SRP               7,709               8,656               7,847             10,787               7,958 
Marketing G/L (Trading Gains)              5,281             17,834             28,042             26,711             41,351 
Concessions          (15,360)          (25,724)          (39,328)          (17,202)          (20,402)
LOCOM            (2,153)                 399                (861)               (118)              2,435 
  Total Secondary Marketing Fees      
          before FAS 133              57,939             59,285             98,886             72,597             93,963 
FAS 133 Pipeline Valuation            10,324               3,070           (30,460)            11,313           (22,100)
  Total Secondary Marketing Fees -      
          Mortgage              68,263             62,355             68,426             83,910             71,863 
       
FAS 91 Reclassification          (74,881)          (86,706)          (74,414)          (62,044)          (69,428)
       
Total Origination Income            76,567             68,375             99,101             95,802             73,565 
       
KEY ORIGINATIONS METRICS      
       
Production ($ in millions):      
  First Lien Production              7,840               6,842               8,915               6,869               6,240 
       
Refinanced Production               3,475               2,117               4,226               3,974               2,992 
Refinanced % 44% 31% 47% 58% 48%
Purchased Production              4,365               4,725               4,689               2,895               3,248 
Purchased % 56% 69% 53% 42% 52%
       
ARMs % (Excluding Gov't ARMS) 50% 48% 41% 31% 28%
       
Relationship Managers 1,879  1,792  1,771  1,664  1,641 
       
Warehouse/Pipeline Balance:      
Ending Warehouse Balance 3,420  2,832  2,840  3,439  2,744 
Ending Pipeline Balance (Locked)              3,309               3,922               3,646               5,248               2,242 
       
Loan Sales (Deliveries):      
Total Loan Sales              7,134               6,529               9,535               6,136               6,507 
       
Margins:      
Marketing Margin on Deliveries (bps):      
OMSR 88  89  108  85  96 
Marketing G/L (Trading Gains) 7  27  30  43  63 
LOCOM (3) 1                    (1)                      -  4 
Concessions/SRP    (11) (26) (33) (10) (19)
Total Marketing Margin on Deliveries          
          before FAS 133 81  91  104  118  144 

7
MORTGAGE BANKING
Quarterly, Unaudited
     4Q04   3Q04   2Q04   1Q04   4Q03 
(Thousands)   $ bps $ bps $ bps $ bps $ bps
SERVICING INCOME                      
Gross Service Fees $80,462  38 $75,279  39 $69,584  39 $68,944  39 $66,635  39
Guarantee Fees        (18,020) (9)        (17,022) (9)        (15,042) (9)        (14,670) (8)        (13,956) (8)
Sub-Service Fee Income                   2     -                    7     -                    6     -                    -     -                    -     - 
Lender Paid MI             (143)    -              (134)    -              (141)    -              (194)    -              (188)    - 
  Net Service Fees            62,301  29           58,130  30           54,407  30           54,080  31           52,491  31 
         
Early Payoff Interest Expense          (5,485)  (2)          (4,064)  (2)          (6,443)  (3)          (5,170)  (3)          (4,618)  (3)
Ancillary Fees            5,864  3             5,666  3             5,539  3             5,525  3             5,550  3 
  Total Service Fees            62,680  30           59,732  31           53,503  30           54,435  31           53,423  31 
         
AMORTIZATION/IMPAIRMENT        
Amortization        (41,639)          (38,111)        (38,971)        (34,001)        (35,116)  
Impairment          (9,489)          (13,356)               379         (14,596)            4,233   
  Total Amortization/Impairment          (51,128)          (51,467)          (38,592)          (48,597)          (30,883)  
         
HEDGE GAINS        
MSR Hedge Gains/(Losses)        
  NII on SWAPs          16,382             16,987           21,649           24,931           30,626   
  Hedge Ratios          15,481               8,648             1,756             9,295             4,645   
  Other Ineffectiveness        (13,342)            (1,701)        (14,866)          (3,898)          (6,481)  
    Total MSR Hedge Gains/(Losses)            18,521             23,934               8,539             30,328             28,790   
         
Amortization & Time Decay of MSR's        (12,129)            (7,637)          (4,633)          (9,004)          (9,843)  
         
Hedge MTM & Time Decay:        
  I/O Strip Time Decay          (1,874)            (1,246)             (421)          (2,679)          (2,126)  
  I/O Strip MTM             (688)              2,244           (3,989)            3,964             9,098   
    Total Hedge MTM & Time Decay            (2,562)                 998             (4,410)              1,285               6,972   
Total Hedge Gains              3,830             17,295                (504)            22,609             25,919   
         
Total Servicing Income            15,382             25,560             14,407             28,447             48,459   
         
KEY SERVICING METRICS        
($ in millions)        
Avg. Servicing Portfolio (Owned) $84,863    $76,885   $      71,543   $      69,503   $      68,263   
End. Servicing Portfolio (Owned) $86,587    $81,591   $      72,165   $      70,317   $      68,914   
Average Loans Serviced (#)        583,248           539,527         517,217         509,506         503,088   
         
Product Mix (Average)         
Product Mix (%)        
GNMA 12%   14% 14% 15% 16%  
FNMA/FHLMC 69%   68% 68% 68% 67%  
Private   15%   13%   13%   12%   12%  
Sub-Total 96%   95% 95% 95% 95%  
Warehouse 4%   5% 5% 5% 5%  
Total   100%   100%   100%   100%   100%  
         
Other Statistics        
(Annualized)        
Ancillary Income per Loan  $        40.22     $        42.01   $        42.84   $        43.38   $        44.13   
Direct Servicing Cost per Loan  $        56.88     $        56.85   $        57.88   $        62.26   $        67.65   
         
Portfolio Data        
(in millions)        
Average Servicing Asset ** 971   947 902 744 785  
Valuation Reserve (Ending Balance) 4   7 7 32 36  
Servicing Book Value (bps)   114   123 127 107 115
         
Amortization/Average Servicing Asset 17%   16% 17% 18% 18%  
Impairment/Average Servicing Asset 4%   6% 0% 8% -2%  
         
Run-Off Rate 26%   22% 34% 27% 25%  
         
** Includes valuation reserve/MSRs only                    
Certain previously reported amounts have been reclassified to agree with current presentation.

8
CAPITAL MARKETS
Quarterly, Unaudited
(Thousands)  4Q04  3Q04  2Q04  1Q04  4Q03
Net interest income ($ 124) $207 $25 $291 $654
Noninterest income:      
     Depository 23,623 26,751 34,756 49,193 38,779
     Nondepository 22,296 20,004 23,498 32,795 28,082
     Other fees 34,164 34,600 44,725 37,285 53,118
Total noninterest income 80,083 81,355 102,979 119,273 119,979
Total revenue 79,959 81,562 103,004 119,564 120,633
Noninterest expense 69,527 64,640 77,945 88,806 84,879
Pretax income 10,432 16,922 25,059 30,758 35,754
         
       
Efficiency ratio 87% 79% 76% 74% 70%
       
Trading inventory (millions) $857 $719 $694 $741 $918
Other earning assets (millions) 634 518 545 522 552
  Total earning assets (millions) 1,491 1,237 1,239 1,263 1,470
       
       
Net interest margin -0.03% 0.07% 0.01% 0.09% 0.18%
       
                 

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CORPORATE
Quarterly, Unaudited
(Thousands)  4Q04  3Q04  2Q04  1Q04  4Q03
Net interest income ($ 4,174) $423 $1,898 $5,216 $6,668
Noninterest income 4,283 2,189 1,842 3,145 3,973
Security G/L (3,733) 19,746 2,911 883 -
Total revenue (3,624) 22,358 6,651 9,244 10,641
Total noninterest expense 10,874 11,451 10,189 11,282 15,825
Pretax income (14,498) 10,907 (3,538) (2,038) (5,184)
                 

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CAPITAL HIGHLIGHTS
(Dollars in millions except per share amounts, Unaudited)
     4Q04 3Q04 2Q04 1Q04 4Q03
  - - - - -
Tier 1 Capital (a) $  2,080.6 $  2,027.2 $  1,985.3 $  1,963.3 $  1,754.4
Tier 2 Capital (a) 1,102.5 739.4 738.0 755.0 755.4
  - - - - -
  Total Capital (a) $  3,183.1 $  2,766.6 $  2,723.3 $  2,718.3 $  2,509.8
  = = = = =
     
Risk-Adjusted Assets (a) $24,129.7 $22,505.2 $21,091.1 $20,408.1 $19,028.8
     
Tier 1 Ratio (a) 8.62% 9.01% 9.41% 9.62% 9.22%
Tier 2 Ratio (a)                4.57                  3.28                  3.50                  3.70                  3.97  
  - - - - -
     
  Total Capital Ratio (a) 13.19% 12.29% 12.91% 13.32% 13.19%
  = = = = =
     
Leverage Ratio (a) 7.16% 7.38% 7.35% 7.97% 7.19%
     
     
Shareholders' Equity/Assets Ratio (b)                6.73                  6.87                  6.86                  7.52                  7.52  
     
     
Book Value $ 16.41   $ 15.96   $ 15.42   $ 15.34   $ 15.01  
             
(a)  Current quarter is an estimate
(b)  Calculated on average balances

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NET INTEREST MARGIN (NIM) HIGHLIGHTS
(Unaudited)
       4Q04     3Q04     2Q04     1Q04     4Q03
Consolidated Yields and Rates:    
 Investment securities 4.21 % 4.36 % 4.30 % 4.23 % 4.61 %
 Loans, net of unearned               5.34                  5.01                  4.81                  4.95                  4.98   
 Other earning assets               5.26                  5.05                  4.67                  4.51                  4.56   
 Yields on earning assets               5.22                  4.95                  4.72                  4.77                  4.84   
 Interest bearing core deposits               1.56                  1.43                  1.28                  1.27                  1.27   
 CD's over $100,000               2.09                  1.61                  1.21                  1.21                  1.24   
 Fed funds purchased and repos               1.78                  1.29                    .90                    .88                    .87   
 Commercial paper and other short-term    
    borrowings               3.64                  3.89                  3.91                  3.36                  3.90   
 Long-term debt               2.70                  2.28                  1.87                  2.08                  1.93   
 Rates paid on interest-bearing liabilities               2.00                  1.63                  1.34                  1.33                  1.33   
  Net interest spread               3.22                  3.32                  3.38                  3.44                  3.51   
 Effect of interest-free sources                  .35                    .28                    .25                    .24                    .25   
  FHN - NIM 3.57 % 3.60 % 3.63 % 3.68 % 3.76 %
Certain previously reported amounts have been reclassified to agree with current presentation.

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OTHER HIGHLIGHTS
(Unaudited)

Balance Sheet:

In prior years, FHN has securitized certain real estate loans through a real estate mortgage investment conduit (REMIC) and retained all of the securitized assets. The retained assets were classified on the Consolidated Statements of Condition in "Securities held to maturity". During fourth quarter 2003, FHN elected to purchase all of the mortgage loans remaining in the REMIC ($136.3 million at repurchase). Subsequent to the repurchase of the mortgage loans, these assets are classified as retail real estate residential loans.

Effective December 31, 2003, FHN adopted FASB Interpretation No. 46, "Consolidation of Variable Interest Entities", and deconsolidated its subsidiary, First Tennessee Capital I (Capital I), which has issued $100.0 million of capital securities that are fully and unconditionally guaranteed by FHN. As a result of this deconsolidation the capital securities are no longer included on FHN's balance sheet. However, $103.0 million of junior subordinated debentures issued by FHN to Capital I are no longer eliminated in consolidation and appear in term borrowings as of December 31, 2003.

On December 31, 2003, FHN completed the sale of substantially all of the assets and liabilities of its wholly owned subsidiary, First National Bank of Springdale (FNB) of Springdale, Arkansas to First Security Bank of Searcy, Arkansas. This transaction resulted in a divestiture gain of $12.5 million. Immediately preceding the sale, FNB had investment securities of approximately $125 million, loans of approximately $165 million, deposits of approximately $300 million and equity of approximately $40 million.

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