The 2015 Dodd-Frank Act stress test shows First Horizon National Corp. and its First Tennessee regional bank would remain capitalized at levels significantly better than "adequate" even in severely adverse economic and financial conditions, said officials. The annual stress tests, which are designed to ensure banks would have enough capital to operate in economically challenging times, are required of national banks and federal savings associations with assets of at least $10 billion.
The tests measure capital levels – a traditional measure of a bank's strength – in the face of hypothetical "severely adverse" events specified by regulators including a greater-than-50-percent drop in the U.S. stock market, a greater-than-25-percent drop in U.S. real estate values, a significant contraction of the U.S. economy and a spike in oil prices.
In March First Horizon submitted results of its annual Dodd-Frank Act Stress Test, commonly known as DFAST, to the Office of the Comptroller of the Currency and the Federal Reserve Bank. A summary of the results is available directly here. A link to the summary is provided under "Stress Testing Results" in the News & Events section of the company's Investor Relations site, http://ir.fhnc.com.