First Horizon stress test disclosure reveals ‘resilience’ of bank

First Horizon Corp.
FHN,
+1.82%
stock was up 2% in premarket trades Friday after the bank revealed the results of its stress test by the U.S. Federal Reserve as illustrating its resiliency as a bank, despite instability in regional banks earlier this year. First Horizon’s comments on the annual stress test results released in June by the U.S. Federal Reserve focused on the bank’s “strong capital position and commitment to prudent risk management through all economic environments.” First Horizon said its minimum common equity tier 1 capital ratio of 8.7% reflects an additional $4 billion of pre-tax loss absorption capacity beyond the required regulatory minimums. Its stressed loss rates and pre-provision net revenue results also outperformed the Federal Reserve published median, the bank said.