Chattanooga-based FSG's stock sinks after quarterly loss

Chattanooga-based FSG's stock sinks after quarterly loss

November 22nd, 2011 by Staff Report in Business Around the Region

FSGBank

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.