Banking strength and stability since 1864. And, it continues proudly today.
A word from our Chairman and CEO
“First Horizon is well positioned to operate in difficult operating environments and economic conditions. Most importantly, we are well positioned to serve our clients and communities in a seamless fashion. Our business model is well diversified by lines of business, geographically and by asset type.”
– Chairman, President and CEO Bryan Jordan
Read more about recent events in the banking industry and how First Horizon is well positioned to continue serving our clients and communities as we have throughout our rich history.
A History of Strength
Since 1864, First Horizon has continuously served clients through changing economic conditions and financial environments.
Both our liquidity position as well as our capital reserves remain strong.
Diversified Business Model
Our business model is well diversified by lines of business, geographically and by asset type making our bank more resilient to market disruption.
By the Numbers
As of 12/31/2022
BANKING CENTERS
~420
BANKING CENTER STATES
12
ASSOCIATES
~7,500
ASSETS1
$79.5B
LOANS1
$57.6B
DEPOSITS1
$64.9B
The company holds a strong capital position
What are the results of First Horizon’s most recent stress test?
On the capital side, First Horizon conducts annual stress tests to ensure the company is able to maintain sufficient financial strength to meet client needs through an adverse financial cycle.
"Our 2022 internal stress test results illustrate the resilience of our business model, commitment to prudent risk management and strong capital position," said Chief Financial Officer Hope Dmuchowski. "Our minimum common equity tier 1 capital ratio of 8.4% reflects an additional $3.3 billion of pre-tax loss absorption capacity beyond the required regulatory minimums and our stressed loss rates and pre-provision net revenue results from our internal exercise reflected stronger results than the Federal Reserve published CCAR bank median."
The following table reflects the Company's ending and minimum capital ratios under the Federal Reserve's Severely Adverse Scenario compared to the required regulatory minimums.
| % Regulatory Ratio | Actual | Projected Stressed Capital Ratios | Minimum Regulatory Capital Ratios | |
|---|---|---|---|---|
| 4Q22 | Ending | Minimum | ||
| Common Equity Tier 1 Capital (%) | 10.7% | 8.7% | 8.4% | 4.5% |
| Tier I Risk Based Capital (%) | 11.2% | 10.5% | 10.3% | 6.0% |
| Total Risk Based Capital (%) | 12.4% | 12.7% | 12.4% | 8.0% |
| Leverage Ratio (%) | 9.7% | 7.9% | 7.6% | 4.0% |
What governance and oversight is in place?
First Horizon’s liquidity management approach is part of a comprehensive, enterprise-wide system of risk governance, measurement, management and reporting.
From the board to the business unit, we have established accountabilities, control processes, procedures and a management governance structure designed to align risk management with risk-taking throughout the company.
The control procedures are aligned with four areas of governance including internal measures like specific risk committees, organizations and business unit practices, as well as independent assurance functions, to ensure our organization continues to evaluate the risk/return and earnings volatility with shareholder value.
Click here to learn more about our risk management structure and approach, beginning on page 86, or liquidity risk management, beginning on page 91.
What is your deposit composition?
We have a stable mix of deposits from a diverse commercial and consumer customer base across Regional and Specialty Bank segments and 12 state footprint.
What are your credit ratings?
Our credit ratings4 are investment grade, indicating an ability to navigate a variety of economic environments. You can read more about the credit ratings below.
First Horizon Corporation
| Moody's5 | Fitch Ratings6 | |
|---|---|---|
| Long-Term Issuer Default Rating | Baa3 (RUR) | BBB (RWP) |
| Short-Term Issuer Default Rating | – | F2 (RWP) |
| Viability Rating | – | bbb (RWP) |
| Preferred Stock | Ba2 (hyb) (RUR) | BB- (RWP) |
| Senior Unsecured | Baa3 (RUR) | BBB (RWP) |
First Horizon Bank
| Moody's5 | Fitch Ratings6 | |
|---|---|---|
| Long-Term Issuer Default Rating | Baa3 (RUR) | BBB (RWP) |
| Subordinated Debt | Baa3 (RUR) | BBB- (RWP) |
| Short-Term Deposits | P-2 (RUR) | F2 (RWP) |
| Long-Term Deposits | A3 (RUR) | BBB+ (RWP) |
| Preferred Stock | Ba2 (hyb) (RUR) | BB- (RWP) |
| Viability Rating | – | bbb (RWP) |
| Senior Unsecured | – | F2 (RWP) |
How does First Horizon’s FDIC membership offer deposit protection?
The FDIC (Federal Deposit Insurance Corporation) is an independent agency of the United States Federal Government and insures all types of deposits received by a financial institution in its usual course of business. FDIC-insured deposits are backed by the full faith and credit of the United States Federal Government. The current standard maximum deposit insurance amount has been permanently increased to $250,000. The FDIC insurance coverage limit applies per depositor, per insured depository institution for each account ownership category. Learn More.
