Chattanooga-based FSG's stock sinks after quarterly loss

Shares of First Security Group Inc. fell Monday after the Chattanooga banking firm reported last week that it lost another $7 million in the third quarter.

Stock in the parent company of FSG Bank slid 11.4 percent, or 24 cents per share, to close at $1.86 per share. Monday's closing was the second lowest ever for the bank, nearly matching the equivalent $1.80-per-share closing on Aug. 8.

In its third-quarter results filed with the Securities and Exchange Commission, First Security said it is "not in compliance" with required capital ratios and will remain under federal oversight under a yearold consent order with the Federal Reserve System.

FSG reported a net loss of nearly $7 million, or $4.40 per share, in the three months ended Sept. 30. In the same quarter a year ago, FSG lost nearly $30.3 million, or $19.18 per share.

First Security has cut its losses this year in half from 2010. But FSG still lost nearly $16.1 million, or $10.13 per share, in the first nine months of this year.

As of Sept. 30, FSG reported consolidated assets of $1.1 billion, loans of $604.4 million, deposits of $1.02 billion and stockholders' equity of $78 million.

A year ago, FSG had assets of $1.2 billion, loans of $777.4 million, deposits of $1.1 billion and stockholders' equity of $106.8 million.

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