The parent company of FSG bank narrowed its third quarter losses this year after recapitalizing the bank in April.
But First Security Group, Inc. still suffered from stiffer competition and narrower margins for loans this summer.
First Security Group said today it lost $1.4 million, or 2 cents per share, in the three months ended Sept. 30. In the same period a year ago, First Security lost $9.4 million, or $5.79 per share.
For the nine months of the year, First Security reported net income of $12 million, or 30 cents per share, compared to a $23.5 million loss, or $14.54 per share, for the same period in 2012.
“The third quarter represents the first full quarter after the April recapitalization,” said Michael Kramer, First Security’s chief executive officer. “While we are pleased with our continued improvement in our deposit mix and associated cost, it is essential that we achieve significant improvement in loan and revenue growth.”
FSG Chief Financial Officer John Haddock said bank has experienced "significant pricing and credit concessions from the competition that has inhibited our ability to grow loans with the quality and yield that we seek."
Haddock said FSG has started new niche lending programs to improve its loan growth. The $1 billion-asset bank is the biggest independent bank in Chattanooga.
Dave Flessner is the business editor for the Times Free Press. A journalist for 35 years, Dave has been business editor and projects editor for the Chattanooga Times Free Press, city editor for The Chattanooga Times, business and county reporter for the Chattanooga Times, correspondent for the Lansing State Journal and Ingham County News in Michigan, staff writer for the Hastings Daily Tribune in Nebraska, and news director for WCBN-FM in Michigan. Dave, a native ...