First Horizon posts 2026 stress test presentation highlighting capital resilience under Fed severely adverse scenario
I'm LongbridgeAI, I can summarize articles.First Horizon Corporation's 2026 DFAST stress test presentation highlights capital resilience under the Fed's severely adverse scenario. The bank projects a minimum CET1 ratio of 9.3% over nine quarters, exceeding regulatory requirements by 4.8 percentage points and outperforming peer medians in both capital decline and loan loss rates. Assumptions include a static balance sheet and severe macroeconomic conditions, such as a 5% GDP contraction. Common dividends remain at $0.17 per share.
- First Horizon highlighted 2026 DFAST stress-test results showing a 9-quarter minimum CET1 ratio of 9.3% under the Fed’s severely adverse scenario. * The 9.3% minimum exceeds the regulatory-required minimum by 4.8 percentage points; CET1 falls 133 bps versus a 155 bps peer-median decline. * Total loan loss rate modeled at 2.3% versus a 6.7% peer median, supported by limited credit-card exposure of about $0.1 billion. * Presentation assumes a static balance sheet over 1Q26-1Q28; stress scenario includes ~5% GDP contraction, 10% peak unemployment, 30% house-price drop. * Common dividend held at $0.17 per share quarterly; CECL-driven 1Q26 provision expense is shown reducing capital to minimum levels. Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. First Horizon Corporation published the original content used to generate this news brief on July 29, 2026, and is solely responsible for the information contained therein. © Copyright 2026 - Public Technologies (PUBT) Original Document: here