First Horizon Announces Results of its 2020 Company-Run Stress Test
First Horizon Corporation (NYSE: FHN) announced robust results from its 2020 Bank Holding Company-run capital stress test, showcasing its resilience in economic stress situations. The company maintained a common equity tier one capital ratio of 8.2%, significantly surpassing regulatory requirements. Moreover, its stressed loss rate of 2.8% outperformed the median of CCAR banks at 6.9%. These results highlight First Horizon's strong risk management and diversified business model, reflecting a pre-provision net revenue exceeding peer medians by 150 basis points.
- Common equity tier one capital ratio of 8.2% exceeds regulatory minimum of 4.5%.
- Stressed loss rate of 2.8% better than median CCAR bank result of 6.9%.
- Pre-provision net revenue as a percentage of assets at 3.5%, exceeding peer median by 150 basis points.
- $3.1 billion additional pre-tax loss absorption capacity.
- None.
MEMPHIS, Tenn., Dec. 28, 2020 (GLOBE NEWSWIRE) -- First Horizon Corporation (NYSE: FHN or the “Company”) today announced the results of its 2020 Bank Holding Company-run capital stress test results which demonstrate the ability to successfully navigate periods of economic stress and maintain capital ratios well above regulatory minimums. These internal results, which utilized the 2020 Severely Adverse Scenario published by the Federal Reserve on September 17, 2020, reflect continued strong risk discipline.
“Our stress test results demonstrate the resiliency and enhanced earnings power of our more diversified business model, benefit of our countercyclical businesses and our expanded geographic presence,” said William C. Losch, Chief Financial Officer. ”Our minimum common equity tier one capital ratio of
The following table reflects the Company’s ending and minimum capital ratios under stress compared to the required regulatory minimums.
% Regulatory Ratio | Actual (%) | Projected Stressed Capital Ratios (%) | Minimum Regulatory Capital Ratios (%) | |
Q2 2020 | Ending | Minimum | ||
Common equity tier 1 capital ratio | 9.3 | 8.4 | 8.2 | 4.5 |
Tier 1 risk-based capital ratio | 10.7 | 9.5 | 9.2 | 6.0 |
Total risk-based capital ratio | 12.5 | 11.7 | 11.4 | 8.0 |
Tier 1 leverage ratio | 8.6 | 7.7 | 7.3 | 4.0 |
The Company’s minimum common equity tier 1 ratio under stress of
Additionally First Horizon’s commercially-oriented portfolio stressed loss rate of
For more information, please see First Horizon’s 2020 stress test disclosure at https://ir.fhnc.com/investor-relations/news-and-events/stress-testing-results/default.aspx.
About First Horizon
First Horizon National Corp. (NYSE:FHN), with
FHN-G
CONTACT:
Investor Relations, Ellen Taylor, 901-523-4450
Media Relations, Beth Ardoin, (337) 521-4701