MEMPHIS, Tenn., July 30, 2025 /PRNewswire/ -- First Horizon Corporation (NYSE:FHN) ("First Horizon" or "the Company") announced today its 2025 company-run capital stress test results. The 2025 test showed that, under hypothetical severe economic and business downturns, First Horizon would maintain capital ratios well above regulatory-required minimums. These internally generated results, which utilized the 2025 Dodd-Frank Act Stress Test Severely Adverse Scenario published by the Federal Reserve on February 5, 2025, reflect continued strong risk discipline.
"Our 2025 capital stress test results reflect the resilience of our diversified business model, prudent risk management, and strong capital position," said Chief Financial Officer Hope Dmuchowski. "Our minimum Common Equity Tier 1 Capital ratio of 9.7% is well above the required regulatory minimum of 4.5% and represents approximately $4 billion of additional pre-tax loss absorption capacity. These results demonstrate our ability to maintain safety and soundness and support clients across a broad range of economic scenarios with a near term target CET1 ratio of 10.75%."
The following table reflects the Company's actual and projected stressed capital ratios under the Federal Reserve's Severely Adverse Scenario compared to required regulatory minimums.
% Regulatory Ratio | Actual | Projected Stressed Capital Ratios | Regulatory Capital Ratios |
4Q24 | Minimum | Minimum | |
Common Equity Tier 1 Capital ratio | 11.2 % | 9.7 % | 4.5 % |
Tier 1 Risk-based Capital ratio | 12.2 % | 10.7 % | 6.0 % |
Total Risk-based Capital ratio | 14.2 % | 12.8 % | 8.0 % |
Tier 1 Leverage ratio | 10.6 % | 9.5 % | 4.0 % |
These results include a $0.15 quarterly common stock dividend throughout the nine-quarter scenario horizon.
First Horizon's loan portfolio stressed loss rate of 2.3% is significantly lower than the 6.1% loss rate from the Federal Reserve-published median DFAST result. FHN's lower loss rate benefits from its portfolio mix, including lower-loss loans to mortgage companies and limited exposure to higher-loss rate credit cards. Additionally, the Company's pre-provision net revenue as a percentage of total assets of 4.7% exceeded the peer median of 2.3%. FHN's stresses to pre-provision net revenue are buffered by its counter-cyclical businesses of fixed income, loans to mortgage companies, and mortgage.
For more information, please see First Horizon's 2025 stress test disclosure at https://ir.firsthorizon.com/fixed-income/stress-test-results/default.aspx.
About First Horizon
First Horizon Corporation (NYSE:FHN), with $82.1 billion in assets as of June 30, 2025, is a leading regional financial services company, dedicated to helping our clients, communities and associates unlock their full potential with capital and counsel. Headquartered in Memphis, TN, the banking subsidiary First Horizon Bank operates in 12 states concentrated in the southern U.S. The Company and its subsidiaries offer commercial, private banking, consumer, small business, wealth and trust management, retail brokerage, capital markets, fixed income, and mortgage banking services. First Horizon has been recognized as one of the nation's best employers by Fortune and Forbes magazines and a Top 10 Most Reputable U.S. Bank. More information is available at www.FirstHorizon.com.
View original content to download multimedia:https://www.prnewswire.com/news-releases/first-horizon-announces-results-of-its-2025-company-run-stress-test-302517862.html
SOURCE First Horizon Corporation