O'Connor also said that the company's estimate of the hit to its Tier 1 common equity ratio from regulators' proposed capital rules, "combined with continued uncertainty over mortgage putbacks and sluggish underlying earnings may cause share buybacks to be less than expected over the next 1-2 years."
First Horizon's shares have now returned 1% year-to-date, following a 32% decline during 2011.
The shares trade just below their reported June 30 tangible book value of $8.28, and for 9.5 times the consensus 2013 earnings estimate of 90 cents a share. The consensus 2012 EPS estimate is six cents.
Interested in more on First Horizon? See TheStreet Ratings' report card for this stock.
Written by Philip van Doorn in Jupiter, Fla.