GlobeNewswire Inc | Jun 28, 2021 04:03PM EDT

June 28, 2021

MEMPHIS, Tenn., June 28, 2021 (GLOBE NEWSWIRE) -- First Horizon Corporation (NYSE: FHN) (First Horizon or the Company) announced today the results of its 2021 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 2021 Severely Adverse Scenario published by the Federal Reserve on February 12, 2021, reflect continued strong risk discipline.

Our commitment to strong risk management and the benefit of our more diversified business model are highlighted by our stress test results, said William C. Losch, Chief Financial Officer. Our minimum common equity tier one capital ratio of 8.5% continued to be well above regulatory requirements, and our stressed loss rates and pre-provision net revenue performed significantly better than the Federal Reserve published CCAR-bank medians.

The following table reflects the Companys ending and minimum capital ratios under the Federal Reserves Severely Adverse Scenario compared to the required regulatory minimums.

Actual Projected Stressed Minimum Regulatory% Regulatory Ratio Capital Ratios Capital Ratios 4Q20 Ending MinimumCommon equity tier 1 9.7 % 8.7 % 8.5 % 4.5 %capital ratioTier 1 risk-based 10.7 % 9.7 % 9.6 % 6.0 %capital ratioTotal risk-based capital 12.6 % 11.9 % 11.8 % 8.0 %ratioTier 1 leverage ratio 8.2 % 7.7 % 7.4 % 4.0 %

The Companys minimum common equity tier 1 ratio under stress of 8.5% reflects an additional $3.4 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.

First Horizons commercially-oriented portfolio stressed loss rate of 3.1% was 280 basis points below the Federal Reserve published median CCAR-bank result. The Companys stress test utilized Current Expected Credit Loss-based models for allowance and credit losses and reflected total cumulative losses of $1.7 billion. Additionally, the Companys pre-provision net revenue as a percentage of total assets of 3.3% exceeded the peer median by 170 basis points and reflects the benefit of fee income diversification.

For more information, please see First Horizons 2021 stress test disclosure at https://ir.fhnc.com/investor-relations/news-and-events/stress-testing-results/default.aspx.

About First Horizon First Horizon Corp. (NYSE: FHN), with $87.5 billion in assets as of March 31, 2021, 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 in 12 states across the southern United States. 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 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.

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CONTACT: Investor Relations, Ellen Taylor, (901) 523-4450 Media Relations, Beth Ardoin, (337) 278-6868