Reynolds said First Horizon's total risk-based capital ratio of 21.6% was "the third-highest such ratio of any publicly traded bank in the U.S." The total risk-based capital ratio was more than twice the level required for most banks and thrifts to be considered well-capitalized under regulatory guidelines. First Horizon's stock has risen 81% since March 6, when the S&P 500 Financials Index bottomed. While its gain trails the returns of Bank of America ( BAC), Citigroup ( C) and Fifth Third Bancorp ( FITB), whose shares have more than quadrupled, the important thing is to look forward. First Horizon's shares were trading at 1.4 times tangible book value as of Friday's close, in line with its peers, Credit Suisse Group ( CS) analyst Craig Siegenthaler said in a report. They're priced at 7.1 times "normalized" annual earnings of $2, which is lower than the 7.8 times for its peer group. Siegenthaler said the shares had "almost 100% upside over the next two to three years." First Horizon's strong capital levels and efforts to shift away from real estate have helped mitigate downside risk. While the shares haven't matched this year's higher flyers, First Horizon investors will be well positioned when the company becomes profitable again, repays the government and puts that capital war chest to work. -- Reported by Philip van Doorn in Jupiter, Fla.