First Horizon Announces Results of its 2026 Company-Run Stress Test
First Horizon Corporation (NYSE: FHN) reported results of its 2026 company-run capital stress test using the Fed’s Feb. 4, 2026 Dodd-Frank Severely Adverse Scenario. The firm said it would keep capital ratios above regulatory minimums, with a CET1 ratio of 9.3% and a stressed loan loss rate of 2.3% versus a 6.7% peer median. It also cited pre-provision net revenue of 5.1% and a $0.17 quarterly dividend during the nine-quarter horizon.
How this was made
The 30-second read
Why it matters
First Horizon’s stated ability to maintain capital ratios above regulatory minimums, with CET1 at 9.3% and a stressed loan loss rate of 2.3%, supports a narrative of stronger-than-median credit performance and earnings capacity under severe conditions.
Market read
Traders may use the CET1 and stressed loss-rate figures as a capital and credit-quality signal for FHN, but the lack of a new regulatory decision or guidance change limits near-term trading urgency.
What to watch
The article does not provide the full stressed capital ratio table or any changes versus prior years, so traders may need the detailed disclosure to assess whether the improvement is structural or assumption-driven.
Background
Under Dodd-Frank, banks run capital stress tests using the Federal Reserve’s severely adverse scenario; companies then disclose results and capital impacts.
Ticker impact
First Horizon reports 2026 company-run stress test results, stating it would keep CET1 at 9.3% and losses at 2.3% under the Fed’s severely adverse scenario.
Likely modest positive bias for sentiment, with limited immediate price impact unless investors were previously concerned about capital or credit deterioration.
The article provides specific stress-test metrics (CET1 9.3%, loan loss rate 2.3%, pre-provision net revenue 5.1%) and frames them as above regulatory minimums and peer medians, but it does not include a fresh regulatory decision, capital raise, or guidance change.
Market effects
Adds another regional bank stress-test datapoint that can affect relative sentiment across bank capital and credit risk, though it is not a sector-wide regulatory change.
Primarily impacts sentiment around US regional banking risk, with potential read-across to peers’ perceived capital buffers.
Limited global relevance; stress-test disclosures are US regulatory-context events with mostly domestic investor impact.
Counterpoint
Stress tests are hypothetical and internally generated; investors may discount the results if they believe the scenario or assumptions are favorable versus real-world outcomes.
Key entities
- companyFirst Horizon Corporation
Regional financial services firm disclosing 2026 company-run capital stress test results.
- regulatorFederal Reserve
Published the 2026 Dodd-Frank Act Stress Test severely adverse scenario used in the company’s test.
