First Horizon Announces Results of its 2020 Company-Run Stress Test

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 8.2% reflects an additional $3.1 billion in pre-tax loss absorption capacity above the 4.5% required regulatory minimum. These results include a $0.15 quarterly common stock dividend throughout the nine quarter forecast horizon.

Additionally First Horizon’s commercially-oriented portfolio stressed loss rate of 2.8% outperformed the median CCAR bank result of 6.9%. The Company’s stress test utilized Current Expected Credit Loss-based models for allowance and credit losses and reflected total cumulative losses of $1.5 billion, excluding Paycheck Protection Program loans. The Company’s pre-provision net revenue as a percentage of total assets of 3.5% exceeded the peer median by 150 basis points and reflects the benefit of First Horizon’s countercyclical businesses.

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.[1][2]

About First Horizon

First Horizon National Corp. (NYSE:FHN), with $83 billion in assets, is a leading regional financial services company, dedicated to strengthening the lives of our associates, clients, shareholders, and communities. Headquartered in Memphis, TN, the banking subsidiary First Horizon Bank operates nearly 500 bank locations in 12 states across the Southeast. With more than 288 years of combined First Horizon Bank and IBERIABANK financial experience, the Company and its subsidiaries offer commercial, private banking, consumer, small business, wealth and trust management, retail brokerage, capital markets, fixed income, mortgage, and title insurance services. First Horizon is 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.

FHN-G

CONTACT: 

Investor Relations, Ellen Taylor, 901-523-4450

Media Relations, Beth Ardoin, (337) 521-4701

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