First Horizon Corporation · NYSE:FHN
First Horizon — First Horizon National — Investor Presentation (April 2008)
14 slides from First Horizon's investor presentation, Apr 28, 2008
Slide 1: Liquidating, Transitioning and Core Franchise Businesses
1 Liquidating Transitioning National Businesses Pursuing Sale/ Wind Down Focusing on Core Franchise - Core Franchise Regional Banking · for and activities customers lending Traditional and deposit-taking retail commercial Capital Markets · markets equity investment as banking capital well Traditiona
Slide 2: Loan Portfolio Overview
Loan Portfolio Overview Period End Loans at 3/31/08 (Total $21.9 billion) [Graphic Appears Here] [Graphic Appears Here] Nonperforming Loans at 3/31/08 (Total $537 million) Public Filings Source: Includes all other loans not allocated to a segment on this page Includes loans in Regional Banking and C
Slide 3: Credit Quality
Credit Quality · net Lending general to Specialty to down related charged National been to deterioration have confined some loans deterioration showing nonperforming portfolio all credit ofconditions value of Majorityportfolios Remaindereconomic Substantiallyrealizable · [Graphic Appears Here] Publi
Slide 4: Performance Overview: Residential CRE
Performance Overview Expect residential CRE portfolio to shrink to ~$1.5bn by year-end 2008 Residential CRE - Total Balance National Balance 1Q08 2.0 bn 1.4 bn — $ $ 4 Q07 2.1 bn 1.4 bn —— — $ $ 3 Q07 2.2 bn 1.5 bn —— — $ $ 2 Q07 2.3 bn 1.5 bn —— — $ $ 1 Q07 2.3 bn 1.5 bn —— — $ $ Total Commitments
Slide 5: Residential CRE Geographic Concentration and Collateral Type
($2.0 billion total balance) Residential CRE Geographic Concentration [Graphic Appears Here] Collateral Type [Graphic Appears Here] 11.9% 18.0% 7.8% 17.9% 10.1% 12.1% 119 43 32 25 17 237 1-4 Family Condo Land Development Raw Land Developed Land Total — 29.0% 17.0% 23.0% 3.0% 11.0% 4.0% 12.0% 6.0% 2.
Slide 6: Performance Overview: One-Time Close
Performance Overview One-Time Close - · a as 2008, year-end sheet by balance market the on $600-650mm secondary retained to in shrink sold mortgages to mortgages prime off portfolio prime performing charged close following: performing $90mm one-time the of $700mm $700mm-$1.1bn Approximately · Expect
Slide 7: Isolating Risk: One-Time Close
Isolating Risk ($1.8bn total balance) One-Time Close - Geographic [Graphic Appears Here] Product Type [Graphic Appears Here] [Graphic Appears Here] [Graphic Appears Here]
Slide 8: Home Equity Portfolio Characteristics
Home Equity Portfolio Characteristics Portfolio Characteristics Geographic Distribution Balance Original FICO Original CLTV Full Doc Owner Occupied HELOCs Weighted Avg. HELOC Utilization Total 8.0bn 732 82% 70% 95% 4.4bn 51% — $$ 5.8bn 738 83% 70% 97% 3.7bn 52% Second $ $ — First 2.1bn 726 78% 72% 8
Slide 9: Home Equity Portfolio Characteristics: LTV, FICO and Peers
Home Equity Portfolio Characteristics 1 Portfolio Characteristics [Graphic Appears Here] 1 Portfolio Breakdown by LTV and FICO 2005 Orig. LTV <=2004 2007 Orig. FICO 2006 2008 FICOOriginal > 90% 4.9% 1.9% 1.9% 3.3% 1.5% 0.5% — 90.0 % —— - 13.1% 4.6% 4.4% 4.2% 1.5% 0.3% 80.1 % - —— — Cumulative Origin
Slide 10: C&I and Income CRE Portfolio
C & I and Income CRE Portfolio C & I Balance by Channel [Graphic Appears Here] Income CRE Balance by Channel [Graphic Appears Here] 40 11 Mar-08 0.57% 2.01% 1.94% mm) 10 Public Filings $ 5 1 Dec-07 Charge-offs 1.96% 0.27% 0.13% Source: — 38 1 NPL 0.86% 0.06% 0.12% 1 Sep-07 (consolidated) 17 1 0.38%
Slide 11: Expectations and Risks Summary
Expectations and Risks Summary · on pressure downward that assumes2009 into forecastcontinue thiswill invalues environmentestate economicreal Theresidential 120 mm 150 mm 425 mm 3 $ $ $ - Post-2008 75- 50- 2 Expectation 1 $ $ 150 $ mm) 72 118 95 115 49 33 483 $ $ Allowance at 3/31/08 ( — mm) 129 162
Slide 12: Liquidity Position Remains Strong
1 Liquidity Position Remains Strong Current Funding Base [Graphic Appears Here] · and liquidity termsecurities excess billion availability, of $6.6 FHLBunpledged be of sources to repos, TAF Current estimated ComprisedMMDAs,Fed · Core Deposits $14bn Total $32bn · to funding used and by deposits debt
Slide 13: Equity Issuance Bolsters Capital Position Significantly
Equity Issuance Bolsters Capital Position Significantly · 17bps of savings approximately capital in by increases results TCE/TA27bps dividend stockannum reduced, with approximately per assetsby dividendmillion of cash$100 billionincreases of · $11 eachTier approximately Forand Replacement · TCE/TA T
Slide 14: Potential Capital Position Methodology and Assumptions
As of 12/31/07SNL Financial 2 Source: Potential Capital Position Methodology Assumptions · 3/31/08 of at illustrate range to calculated place made a are takes under ratios assumptions ratios capital transaction capital scenarios forma assuming potential Pro Simplifying credit · · 1 $10.75 (each of e
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