First Horizon Announces Results of its 2026 Company-Run Stress Test

MEMPHIS, Tenn. , July 29, 2026 /PRNewswire/ -- First Horizon Corporation (NYSE: FHN ) ("First Horizon" or "the Company") announced today its 2026 company-run capital stress test results. The 2026 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 2026 Dodd-Frank Act Stress Test Severely Adverse Scenario published by the Federal Reserve on February 4, 2026, reflect continued strong risk discipline. "First Horizon's 2026 stress test results reinforce the strength of our capital position and the resilience built into our business model," said Hope Dmuchowski, Chief Financial Officer. "Our ability to maintain a CET1 ratio of 9.3% and a loan loss rate less than half that of our peer median - even amid a scenario of severe recession and market stress - demonstrates the value of our diversified revenue streams and prudent risk culture. Through disciplined capital management and unwavering focus on our clients, we are well equipped to deliver on our commitments, sustain our dividend, and support economic opportunity in our communities, regardless of the environment." 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 4Q25 Minimum Minimum Common Equity Tier 1 Capital ratio 10.6 % 9.3 % 4.5 % Tier 1 Risk-based Capital ratio 11.5 % 10.2 % 6.0 % Total Risk-based Capital ratio 13.3 % 12.2 % 8.0 % Tier 1 Leverage ratio 10.2 % 9.1 % 4.0 % These results include a $0.17 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 6.7% 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 5.1% exceeded the peer median of 3.0%. 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 2026 stress test disclosure at https://ir.firsthorizon.com/fixed-income/stress-test-results/default.aspx . About First Horizon First Horizon Corporation (NYSE: FHN ), with $84.4 billion in assets as of June 30, 2026, 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 . SOURCE First Horizon Corporation