UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of
The Securities Exchange Act of 1934

July 21, 2004
(Date of earliest event reported)

FIRST HORIZON NATIONAL CORPORATION
(Exact name of registrant as specified in its charter)


TENNESSEE 		 
000-4491 		 
62-0803242
(State or other jurisdiction
of incorporation) 		  (Commission File Number)   (IRS Employer Identification No.)


 
165 MADISON AVENUE, MEMPHIS, TENNESSEE 		 
38103 		 
  (Address of principal executive offices)   (Zip Code)  

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

Item 7. Financial Statements and Exhibits.

(c)     Exhibits

The following exhibit is furnished pursuant to Item 9, is not to be considered "filed" under the Securities Exchange Act of 1934, as amended ("Exchange Act"), and shall not be incorporated by reference into any of First Horizon National Corporation's ("Corporation") previous or future filings under the Securities Act of 1933, as amended, or the Exchange Act.

Exhibit # Description
99.1 First Horizon National Corporation Second Quarter 2004 Financial Supplement

Item 9. Regulation FD Disclosure.

Furnished as Exhibit 99.1 is a copy of First Horizon National Corporation Second Quarter 2004 Financial Supplement which is scheduled to be released July 21, 2004.

SIGNATURE

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

   
FIRST HORIZON NATIONAL CORPORATION
July 21, 2004
(Date) 		 
By: /s/   MARLIN L. MOSBY, III
Name: Marlin L. Mosby, III
Title: Executive Vice President and Chief Financial Officer

Exhibit Index

The following exhibit is furnished pursuant to Item 9 is not to be considered “filed” under the Exchange Act, and shall not be incorporated by reference into any of the Corporation’s previous or future filings under the Securities Act of 1933, as amended, or the Exchange Act.

Exhibit # Description
99.1 First Horizon National Corporation Second Quarter 2004 Financial Supplement

SECOND QUARTER 2004 FINANCIAL SUPPLEMENT

CONSOLIDATED
Quarterly
(Unaudited)

 (Thousands)   2Q04   1Q04   4Q03   3Q03   2Q03   1Q03 
 Net interest income $213,606  $196,009  $196,442  $214,156  $200,906  $194,280 
 Noninterest income 347,285  367,240  364,052  388,171  447,251  443,234 
 Divestitures 1,800  2,000  22,498  0  0  0 
 Security G/L 3,214  885  8  4,178  (752)  (1,056) 
 Total revenue 565,905  566,134  583,000  606,505  647,405  636,458 
 Noninterest expense   384,080  371,976  382,004  409,934  448,370  427,364 
 Provision 12,292  14,229  15,392  16,355  27,501  27,450 
 Pretax income 169,533  179,929  185,604  180,216  171,534  181,644 
 Income taxes 51,149  60,658  67,959  61,933  53,182  62,615 
 Net income 118,384  119,271  117,645  118,283  118,352  119,029 
     
 Diluted shares 128,497  129,698  130,755  130,594  131,864  130,289 
 EPS 0.92  0.92 0.90 0.91 0.90 0.91 
 Tax rate 30%  34%  37%  34%  31%  34% 
 Efficiency ratio 68%  66%  66%  68%  69%  67% 
                   
1

STATEMENT OF INCOME
Quarterly
(Unaudited)

 (Thousands)  2Q04   1Q04   4Q03   3Q03   2Q03 
 Interest income $277,815  $254,015  $253,184  $277,436  $266,954 
 Less interest expense 64,209  58,006  56,742  63,280  66,048 
   Net interest income 213,606  196,009  196,442  214,156  200,906 
 Provision for loan losses 12,292  14,229  15,392  16,355  27,501 
   Net interest income after    
   provision for loan losses 201,314  181,780  181,050  197,801  173,405 
 Noninterest income:    
   Mortgage banking 122,242  131,531  124,949  148,868  174,441 
   Capital markets 102,195  117,928  117,770  122,876  158,598 
   Deposit transactions    
   and cash management 38,234  33,961  37,971  37,328  38,626 
   Merchant processing 19,365  16,743  15,878  15,295  13,860 
   Insurance premiums and    
   commissions 14,104  16,394  13,698  14,465  15,185 
   Trust services and investment    
   management 11,891  11,804  11,654  12,011  10,825 
   Gains on divestitures                   1,800                    2,000                  22,498                           -                           -  
  Securities gains/(losses) 3,214  885  8  4,178  (752) 
  Other 39,254  38,879  42,132  37,328  35,716 
 Total noninterest income 352,299  370,125  386,558  392,349  446,499 
   Adjusted gross income after    
   provision for loan losses 553,613  551,905  567,608  590,150  619,904 
 Noninterest expense:    
   Employee compensation,    
   incentives and benefits 238,402  238,250  218,968  235,495  279,306 
   Occupancy 21,699  20,963  21,569  22,620  19,789 
   Equipment rentals, depreciation,    
   and maintenance 17,573  17,776  17,957  17,210  16,616 
  Operations services 15,944  15,399  15,160  17,700  17,330 
   Communications and courier 13,223  11,803  13,324  12,917  12,316 
   Amortization of intangible assets 2,191  2,171  2,403  2,065  1,738 
   Other 75,048  65,614  92,623  101,927  101,275 
 Total noninterest expense 384,080  371,976  382,004  409,934  448,370 
 Pretax income 169,533  179,929  185,604  180,216  171,534 
   Applicable income taxes 51,149  60,658  67,959  61,933  53,182 
 Net income $118,384  $119,271  $117,645  $118,283  $118,352 
 Diluted earnings per common share $        .92  $        .92  $        .90  $        .91  $        .90 
 Dividends declared        .40         .40         .40         .30         .30 
 SELECTED FINANCIAL RATIOS:      
 Return on average assets 1.75%  1.93% 1.89% 1.71% 1.89% 
 Return on average shareholders' equity                   25.5                    25.6                    25.2                    25.9                    26.5 
Certain previously reported amounts have been reclassified to agree with current presentation.
2

OTHER INCOME AND OTHER EXPENSE
Quarterly
(Unaudited)

 (Thousands)  2Q04   1Q04   4Q03   3Q03   2Q03 
 All other income and commissions:    
 Cardholder fees  $  6,348   $  5,861   $  6,129   $    5,841   $    5,600 
 Other service charges                  5,098  4,645  5,002  4,759  4,925 
 Check clearing fees                  2,523  2,627  2,913  2,819  2,955 
 Other                25,285  25,746  28,088  23,909  22,236 
 Total      $39,254   $38,879   $42,132   $  37,328   $  35,716 
 All other expense:    
 Advertising and public relations  $  9,527   $11,873   $10,425   $    9,358   $  11,486 
 Legal and professional fees                  9,700  6,685  14,979  19,978  14,896 
 Computer software                  7,596  6,984  8,180  7,396  6,836 
 Travel and entertainment                  7,044  7,083  9,669  10,424  9,072 
 Contract employment                  5,430  4,143  6,769  9,577  9,196 
 Supplies                  4,545  4,460  4,819  5,004  4,718 
 Fed services fees                  2,267  2,329  2,190  2,206  2,359 
 Deposit insurance premium                     708  732  682  682  701 
Foreclosed real estate                      977  26  2,169  3,322  2,692 
 Contributions                     494  250  373  607  10,440 
 Distributions on guaranteed     
  preferred securities (a)                          -                           -  2,017  2,018  2,017 
 Distributions on preferred     
   stock of subsidiary (a)                          -                           -                           -                           -  1,141 
 Other                26,760  21,049  30,351  31,355  25,721 
 Total      $75,048   $65,614   $92,623   $101,927   $101,275 
(a) On July 1, 2003, FHN adopted certain provisions of SFAS No. 150 and classified its mandatorily redeemable preferred stock of
      subsidiary to term borrowings.  As required by SFAS No. 150, the distributions on these instruments have been classified as interest
      expense on a prospective basis.  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)  2Q04  1Q04 4Q03 3Q03 2Q03
 Loans, net of unearned income:    
   Commercial:    
   Commercial, financial and industrial $  4,736.6  $  4,491.6  $  4,450.3  $  4,442.5  $  4,274.6 
   Real estate commercial 965.1  982.6  1,046.9  1,025.9  1,091.3 
     Real estate construction 796.6  705.6  672.9  652.1  616.4 
    Total commercial loans 6,498.3  6,179.8  6,170.1  6,120.5  5,982.3 
   Retail:    
   Real estate residential 7,253.7  6,810.6  6,552.6  5,951.2  5,409.7 
   Real estate construction 619.1  550.5  495.8  446.5  396.4 
   Other retail 188.7  204.0  239.1  259.1  265.3 
     Credit card receivables 258.4  259.3  265.0  261.5  260.6 
      Total retail loans 8,319.9  7,824.4  7,552.5  6,918.3  6,332.0 
   Total loans, net of unearned income 14,818.2  14,004.2  13,722.6  13,038.8  12,314.3 
 Investment securities 2,474.6  2,546.7  2,599.0  2,435.7  2,199.2 
 REMIC securities (a)                    -                      -   42.3  172.2  213.4 
 Loans held for sale 4,689.7  3,290.9  2,672.5  5,707.7  5,160.6 
 Other earning assets 1,658.0  1,577.7  1,810.6  1,846.2  1,676.7 
   Total earning assets  23,640.5  21,419.5  20,847.0  23,200.6  21,564.2 
 Cash and due from banks  718.4  718.7  746.2  740.8  732.9 
 Other assets 2,917.4  2,755.8  3,037.3  3,495.4  2,814.8 
   Total assets $27,276.3  $24,894.0  $24,630.5  $27,436.8  $25,111.9 
     
 Certificates of deposit under    
   $100,000 and other time $  1,880.6  $  1,824.6  $  1,855.8  $  1,839.1  $  1,872.1 
 Other interest-bearing deposits 4,146.7  4,055.1  4,061.4  3,962.0  3,942.5 
   Total interest-bearing core deposits 6,027.3  5,879.7  5,917.2  5,801.1  5,814.6 
 Demand deposits 1,623.2  1,652.2  1,870.0  1,800.0  1,807.5 
 Other noninterest-bearing deposits 3,091.0  2,544.1  2,563.8  3,717.6  3,195.8 
   Total core deposits 10,741.5  10,076.0  10,351.0  11,318.7  10,817.9 
 Certificates of deposit $100,000 and more 6,580.7  5,856.3  5,175.1  5,809.6  4,987.7 
      Total deposits 17,322.2  15,932.3  15,526.1  17,128.3  15,805.6 
 Short-term borrowed funds 4,183.4  4,017.5  4,238.6  4,659.6  4,567.9 
 Term borrowings (a) 2,442.0  1,821.8  1,552.0  1,597.2  1,205.7 
 Other liabilities           1,457.3  1,250.3  1,360.2  2,136.5  1,597.3 
 Qualifying capital securities (a) (b)                    -                      -   100.0  100.0  100.0 
 Preferred stock of subsidiary (a)                    .5                     .4                     .4                     .3                 44.4 
 Shareholders' equity 1,870.9  1,871.7  1,853.2  1,814.9  1,791.0 
   Total liabilities and shareholders' equity $27,276.3  $24,894.0  $24,630.5  $27,436.8  $25,111.9 
 Diluted shares outstanding 128.5  129.7  130.8  130.6  131.9 
(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
4

RETAIL/COMMERCIAL BANKING
Quarterly
(Unaudited)

 (Thousands)  2Q04   1Q04   4Q03   3Q03   2Q03   1Q03 
 Net interest income $167,331  $158,102  $157,888  $153,814  $144,021  $141,108 
 Noninterest income 119,407  113,980  108,492  105,379  108,172  97,600 
 Divestitures 1,800  2,000  22,498  0  0  0 
 Security G/L 303  2  8  11  389  340 
 Total revenue 288,841  274,084  288,886  259,204  252,582  239,048 
 Total noninterest expense 174,834  170,402  186,280  175,347  178,473  169,034 
 Provision 12,310  14,249  15,333  16,319  27,913  25,565 
 Pretax income 101,697  89,433  87,273  67,538  46,196  44,449 
     
 Efficiency ratio 61%  62%  64%  68%  71%  71% 
     
 Average loans (millions) $14,798  $13,988  $13,697  $13,015  $12,289  $11,682 
 Other earning assets (millions) 896  598  274  363  421  452 
  Total earning assets (millions) 15,694  14,586  13,971  13,378  12,710  12,134 
     
 Total deposits 9,474  9,285  9,428  9,227  9,178  9,113 
     
 Net interest margin 4.29%  4.36%  4.48%  4.56%  4.55%  4.72% 
     
     
 Noninterest revenue detail            
 Deposit transactions & cash mgmt $38,233  $33,960  $37,947  $37,343  $38,637  $32,774 
 Merchant processing 19,369  16,748  15,882  15,299  13,865  12,580 
 Insurance premium & commissions 13,674  15,961  13,189  14,052  14,782  14,000 
 Trust services & investment mgmt 11,891  11,804  11,655  12,010  10,825  11,383 
 Cardholder fees 6,301  5,696  6,034  5,762  5,525  5,063 
 Other service charges 4,802  4,446  4,811  4,509  4,717  4,936 
 Check clearing fees 2,523  2,627  2,913  2,819  2,955  3,152 
 Other 22,614  22,738  16,061  13,585  16,866  13,712 
 Total noninterest revenue 119,407  113,980  108,492  105,379  108,172  97,600 
       
 Statistics    
 Trust total assets (millions)  12,160  12,894  11,884  11,891  12,200  11,528 
 Trust total managed assets (millions) 7,546  7,979  7,258  7,265  7,434  7,029 
 Merchant transactions 39,340  38,329  33,345  33,937  32,627  31,676 
 Express processing transactions  78,615  82,345  87,718  90,979  94,541  94,305 
5

MORTGAGE BANKING
Quarterly
(Unaudited)

(Thousands)  2Q04  1Q04  4Q03  3Q03  2Q03  1Q03
Net interest income $44,352 $32,400 $31,232 $61,819 $54,053 $43,500
Noninterest income:      
         Net origination fees 99,101 95,802 73,565 169,159 190,567 168,912
         Net servicing fees 14,407 28,447 48,459 (26,004) (25,519) 11,250
         Other fees 9,549 6,593 9,584 12,720 11,277 20,278
Total noninterest income 123,057 130,842 131,608 155,875 176,325 200,440
Total revenue 167,409 163,242 162,840 217,694 230,378 243,940
Noninterest expense 121,112 101,486 95,020 115,191 127,026 129,007
Provision (18) (20) 59 36 (412) 1,885
Pretax income 46,315 61,776 67,761 102,467 103,764 113,048
       
Noninterest expense detail      
Commissions & incentives $69,026 $49,590 46,067 104,890 117,499 82,858
FAS 91 cost deferral (594) (4,040) 1,484 21,178 (5,359) (4,368)
Other salaries & benefits 54,931 54,206 50,432 61,588 63,260 61,464
  Total salaries & benefits 123,363 99,756 97,983 187,656 175,400 139,954
Contract labor & outsourcing  4,234 3,395 5,169 9,473 9,241 8,105
Equipment & occupancy 16,163 16,295 15,978 17,351 14,138 14,770
Synthetic lease write-down  0 0 0 0 0 13,986
Foreclosure provision  617 (1,039) 1,992 2,853 2,105 4,663
Other expenses  46,769 41,401 42,243 56,453 52,123 42,576
FAS 91 reclassification (74,415) (62,044) (69,428) (159,311) (126,516) (95,762)
Total Non-Interest Expense Before      
         Segment Allocations  116,731 97,764 93,937 114,475 126,491 128,292
Segment Allocations 4,381 3,722 1,083 716 535 715
 Total Non-Interest Expense 121,112 101,486 95,020 115,191 127,026 129,007
       
Other information      
Efficiency ratio 72% 62% 58% 53% 55% 53%
       
Warehouse (millions) $3,858 $2,742 $2,614 $5,671 $5,117 $4,109
Other earning assets (millions) 250 228 241 226 166 173
  Total earning assets (millions) 4,108 2,970 2,855 5,897 5,283 4,282
       
Deposits 1,819 1,286 1,419 2,608 2,193 1,704
       
Net interest margin 4.34% 4.39% 4.34% 4.16% 4.10% 4.12%
     
Warehouse Spread 3.84% 3.91% 3.73% 3.82% 3.73% 3.84%
                   
6

MORTGAGE BANKING
Quarterly
(Unaudited)

(Thousands)    2Q04  1Q04  4Q03  3Q03  2Q03  1Q03
ORIGINATION INCOME    
Origination Fees $96,270 $71,737 $64,210 $127,365 $130,931 $99,083
FAS 91 Fee Deferral            474        (3,939)            742       19,754        (4,326)        (2,961)
Appraisal, Final Inspection, Credit Card Fees         8,345         6,138         6,178       10,384       10,211         8,114
  Total origination fees     105,089       73,936       71,130     157,503     136,816     104,236
     
Secondary Marketing Income:    
OMSR      103,186       52,419       62,621     193,825     112,595     108,280
SRP          7,847       10,787         7,958         2,852         5,931         5,186
Marketing G/L (Trading Gains)       28,042       26,711       41,351         2,571       53,047       74,069
Concessions      (39,328)      (17,202)      (20,402)      (17,352)        (1,081)      (26,394)
LOCOM           (861)           (118)         2,435        (2,601)            657        (1,534)
  Total Secondary Marketing Fees b/f FAS 133       98,886       72,597       93,963     179,295     171,149     159,607
FAS 133 Pipeline Valuation      (30,460)       11,313      (22,100)        (8,328)         9,118            831
  Total Secondary Marketing Fees - Mortgage       68,426       83,910       71,863     170,967     180,267     160,438
     
FAS 91 Reclassification      (74,414)      (62,044)      (69,428)    (159,311)    (126,516)      (95,762)
     
Total Origination Income       99,101       95,802       73,565     169,159     190,567     168,912
     
KEY ORIGINATIONS METRICS    
     
Production ($ in millions):    
  First Lien Production         8,915         6,869         6,240       14,400       15,078       11,372
     
Refinanced Production          4,226         3,974         2,992       10,394       11,455         8,969
Refinanced % 47% 58% 48% 72% 76% 79%
Purchased Production         4,689         2,895         3,248         4,006         3,623         2,403
Purchased % 53% 42% 52% 28% 24% 21%
     
ARMs % (Excluding Gov't ARMS) 41% 31% 28% 17% 14% 12%
     
     
Warehouse/Pipeline Balance:    
Ending Warehouse Balance 2,840 3,439 2,744 2,871 5,810 4,700
Ending Pipeline Balance (Locked)         3,646         5,248         2,242         3,497       10,964         8,341
     
Loan Sales (Deliveries):    
Total Loan Sales         9,535         6,136         6,507       17,370       14,097       11,589
     
Margins:    
Marketing Margin on Deliveries (bps):    
OMSR 108 85 96 111 80 93
Marketing G/L (Trading Gains) 30 43 63 1 38 64
LOCOM (1) (0) 4 (1) 0 (1)
Concessions/SRP  (33) (10) (19) (8) 3 (18)
Total Marketing Margin on Deliveries - b/f FAS 133 104 118 144 103 121 138
7

MORTGAGE BANKING
Quarterly
(Unaudited)

     2Q04   1Q04   4Q03   3Q03   2Q03   1Q03 
 (Thousands)    $ bps $ bps $ bps $ bps $ bps $ bps
 SERVICING INCOME                          
 Gross Service Fees $69,584  39 $68,944  39 $66,635  39 $64,339  39 $60,354  40 $57,047  40 
 Guarantee Fees   (15,042)  (9)    (14,670)  (8)    (13,956)  (8)    (13,278)  (8)      (11,767)  (8)      (9,578)  (7) 
 Sub-Service Fee Income             6  0             -   0             -   0             -   0               -   0            90  0 
 Lender Paid MI        (141)  0         (194)  (0)         (188)  (0)         (177)  (0)           (232)  (0)         (236)  (0) 
   Net Service Fees      54,407  30     54,080  31     52,491  31     50,884  31       48,355  32     47,323  33 
         
 Early Payoff Interest Expense     (6,443)    (3)      (5,170)    (3)      (4,618)    (3)    (11,588)    (7)      (10,967)    (7)      (7,299)    (5) 
 Ancillary Fees      5,539  3       5,525  3       5,550  3       5,583  3         5,634  3       5,380  4 
   Total Service Fees      53,503  30    54,435  31     53,423  31     44,879  27       43,022  28     45,404  32 
         
 AMORTIZATION/IMPAIRMENT        
 Amortization   (38,971)      (34,001)    (35,116)    (33,424)      (32,673)    (31,060)   
 Impairment         379      (14,596)       4,233    (47,765)      (72,331)    (42,461)   
   Total Amortization/Impairment     (38,592)      (48,597)      (30,883)      (81,189)      (105,004)      (73,521)   
         
         
 HEDGE GAINS        
 MSR Hedge Gains/(Losses)         
   NII on SWAPs    21,649       24,931     30,626     27,486       25,591     28,182   
   Ineffectiveness   (13,110)         5,397      (1,836)      (3,809)       14,548     10,874   
     Total MSR Hedge Gains/(Losses)         8,539       30,328       28,790       23,677         40,139       39,056   
         
 Amortization & Time Decay of MSR's     (4,633)        (9,004)      (9,843)      (3,817)        (1,049)      (1,819)   
         
 Hedge MTM & Time Decay:        
   I/O Strip Time Decay        (421)        (2,679)      (2,126)         (469)           (341)         (183)   
   I/O Strip MTM     (3,989)         3,964       9,098      (9,085)        (2,286)       2,313   
     Total Hedge MTM & Time Decay       (4,410)         1,285         6,972        (9,554)          (2,627)         2,130   
 Total Hedge Gains          (504)       22,609       25,919       10,306         36,463       39,367   
       
 Total Servicing Income      14,407       28,447       48,459      (26,004)        (25,519)       11,250   
       
       
 KEY SERVICING METRICS      
 ($ in millions)       
 Avg. Servicing Portfolio (Owned)  $71,543     $69,503   $68,263   $66,170   $  61,153   $56,939   
 End. Servicing Portfolio (Owned)  $72,165     $70,317   $68,914   $67,625   $  63,952   $58,179   
       
 Average Loans Serviced (#)   517,217     509,506   503,088   492,069     464,467   446,718   
       
 Product Mix (Average)       
 Product Mix (%)       
 GNMA 14%   15% 16% 16% 17% 18%  
 FNMA/FHLMC 68%   68% 67% 63% 60% 58%  
 Private   13%   12%   12%   12%   13%   16%  
 Sub-Total 95%   95% 95% 91% 90% 92%  
 Warehouse 5%   5% 5% 9% 10% 8%  
 Total   100%   100%   100%   100%   100%   100%  
       
 Other Statistics      
 (Annualized)       
 Ancillary Income per Loan  $  42.84     $  43.38   $  44.13   $  45.39   $    48.52   $  48.17   
 Direct Servicing Cost per Loan  $  57.88     $  62.26   $  67.65   $  75.27   $    76.36   $  78.44   
       
 Portfolio Data      
 (in millions)       
 Average Servicing Asset ** 1,096   932 974 867 572 632  
 Valuation Reserve (Ending Balance)  7   32 37 58 71 45  
 Servicing Book Value (bps)    153 134 143 131 94 111
       
 Amortization/Average Servicing Asset 14%   15% 14% 15% 23% 20%  
 Impairment/Average Servicing Asset 0%   6% -2% 22% 51% 27%  
       
 Run-Off Rate 34%   27% 25% 63% 64% 52%  
       
       
 ** Includes valuation reserve                          
8

CAPITAL MARKETS
Quarterly
(Unaudited)

 (Thousands)  2Q04   1Q04   4Q03   3Q03   2Q03   1Q03 
 Net interest income $25  $291  $654  $1,028  $1,750  $2,189 
 Noninterest income:      
      Depository 34,756  49,193  38,779  53,049  65,897  70,661 
      Nondepository 23,498  32,795  28,082  29,840  42,131  38,048 
      Other fees 44,725  37,285  53,118  41,203  52,361  32,618 
 Total noninterest income 102,979  119,273  119,979  124,092  160,389  141,327 
 Total revenue 103,004  119,564  120,633  125,120  162,139  143,516 
 Noninterest expense 77,945  88,806  84,879  90,762  117,324  103,837 
 Provision 0  0  0  0  0  0 
 Pretax income 25,059  30,758  35,754  34,358  44,815  39,679 
       
       
 Efficiency ratio 76%  74%  70%  73%  72%  72% 
       
 Trading inventory (millions) $694  $741  $918  $893  $924  $843 
 Other earning assets (millions) 545  522  552  667  549  447 
   Total earning assets (millions) 1,239  1,263  1,470  1,560  1,473  1,290 
       
       
 Net interest margin 0.01%  0.09%  0.18%  0.26%  0.48%  0.69% 
     
             
9

CORPORATE
Quarterly
(Unaudited)

 (Thousands)   2Q04   1Q04   4Q03   3Q03   2Q03   1Q03 
 Net interest income $1,898  $5,216  $6,668  ($ 2,505)  $1,082  $7,483 
 Noninterest income 1,842  3,145  3,973  2,825  2,365  3,867 
 Security G/L 2,911  883  0  4,167  (1,141)  (1,396) 
 Total revenue 6,651  9,244  10,641  4,487  2,306  9,954 
 Total noninterest expense 10,189  11,282  15,825  28,634  25,547  25,486 
 Pretax income (3,538)  (2,038)  (5,184)  (24,147)  (23,241)  (15,532) 
             
10

CAPITAL HIGHLIGHTS
(Dollars in millions except per share amounts, Unaudited)

     2Q04  1Q04 4Q03 3Q03 2Q03
 Tier 1 Capital (a) $  1,987.1  $  1,963.3  $  1,754.4  $  1,702.4  $  1,665.8 
 Tier 2 Capital (a) 738.0  755.0  755.4  788.5  806.3 
   Total Capital (a) $  2,725.1  $  2,718.3  $  2,509.8  $  2,490.9  $  2,472.1 
     
 Risk-Adjusted Assets (a) $21,460.8  $20,408.1  $19,028.8  $18,447.7  $19,191.5 
     
 Tier 1 Ratio (a) 9.26%  9.62%  9.22%  9.23%  8.68% 
 Tier 2 Ratio (a)                3.44                  3.70                  3.97                  4.27                  4.20  
  - - - - -
   Total Capital Ratio (a) 12.70%  13.32%  13.19%  13.50%  12.88% 
     
 Leverage Ratio (a) 7.35%  7.97%  7.19%  6.26%  6.70% 
     
 Shareholders' Equity/Assets Ratio (b)                 6.86                  7.52                  7.52                  6.62                  7.13  
     
 Book Value $ 15.42   $ 15.34   $ 15.01   $ 14.64   $ 14.16  
             
(a)   Current quarter is an estimate
(b)  Calculated on average balances
11

NET INTEREST MARGIN (NIM) HIGHLIGHTS
(Unaudited)

         2Q04      1Q04     4Q03     3Q03     2Q03
 Consolidated Yields and Rates:    
   Investment securities 4.30 %  4.23 %  4.61 %  3.76 %  4.26 % 
   Loans, net of unearned               4.72                  4.85                  4.86                  4.96                  5.13   
   Other earning assets               4.67                  4.51                  4.56                  4.55                  4.70   
  Yields on earning assets               4.66                  4.70                  4.76                  4.69                  4.90   
  Interest bearing core deposits               1.28                  1.27                  1.27                  1.30                  1.46   
  CD's over $100,000               1.21                  1.21                  1.24                  1.22                  1.41   
  Fed funds purchased and repos                 .90                    .88                    .87                    .92                  1.11   
  Commercial paper and other short-term    
     borrowings               3.88                  3.30                  3.83                  3.86                  3.78   
  Long-term debt               1.87                  2.08                  1.93                  2.61                  3.30   
 Rates paid on interest-bearing liabilities               1.34                  1.32                  1.33                  1.40                  1.59   
   Net interest spread               3.32                  3.38                  3.43                  3.29                  3.31   
  Effect of interest-free sources                   .25                    .24                    .25                    .32                    .37   
  Loan fees                 .06                    .06                    .08                    .07                    .07   
  FRB interest and penalties                     -                        -                        -                        -                   (.01)  
   FHNC - NIM   3.63 %  3.68 %  3.76 %  3.68 %  3.74 % 
Certain previously reported amounts have been reclassified to agree with current presentation.
12

OTHER HIGHLIGHTS
 (Unaudited)

Balance Sheet:

Effective July 1, 2003, FHN adopted Statement of Financial Accounting Standard (SFAS) No. 150, “Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity”, and classified its mandatorily redeemable preferred stock of subsidiary ($45.1 million on July 1, 2003) as term borrowings.  As required by SFAS No. 150 prior periods were not restated.

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.

13