FSG loss doubles in quarter

FSG loss doubles in quarter

May 18th, 2011 by Staff Report in Business Around the Region

First Security Group doubled its first-quarter losses this year as the number of delinquent loans continued to rise even as FSG Bank reduced its loan portfolio.

The Chattanooga-based bank holding company reported in a regulatory filing this week that it lost $3.2 million, or 20 cents per share, in the first three months of 2011. In the same period a year ago, the parent company of FSG lost $1.6 million, or 10 cents per share.

FSG operates 36 bank offices in Tennessee and Northwest Georgia and continues to operate under a consent order from the Office of Comptroller of the Currency to shore up its capital position.

In a filing with the U.S. Securities and Exchange Commission, FSG said it is still short of regulatory requirements. But the bank recently replaced its chief executive and employed Triumph Investment Managers to develop a strategic plan to put the bank back in the black.