Business Briefs: FSG cuts loss in first quarter

Business Briefs: FSG cuts loss in first quarter

May 1st, 2014 by Staff Reports and Associated Press in Business Around the Region

FSG Bank

FSG Bank

Photo by John Rawlston /Times Free Press.

FSG cuts loss in first quarter

First Security Group Inc. narrowed its first-quarter losses this year after the bank was recapitalized in April, 2013.

The Chattanooga-based parent company of FSG Bank had a pre-tax profit from operations in the first quarter. But due to continued allowances for loan losses, the bank reported a $45,000 loss in the first three months of 2014. In the same period a year ago, FSG lost $7.9 million.

"Our goal is to continue our momentum to achieve core profitability," FSG President Michael Kramer said.

FSG Bank was recapitalized a year ago with the sale of more than $90 million of additional stock.

Over the past year, Kramer said loans, including those held-for-sale, increased by nearly 17.7 percent, or $96.4 million.

GM bailout costs tallied

A new report says taxpayers lost $11.2 billion on the government's bailout of General Motors.

The estimate comes from a quarterly report to Congress by a government watchdog that oversees the bailout, and is up from a previous estimate of $10.5 billion.

The Detroit automaker needed the $49.5 billion bailout to survive its bankruptcy restructuring in 2009. The company went public again in November 2010, and the government sold its last shares of GM in December. The report says the Treasury Department wrote off an $826 million administrative claim against General Motors Co. in March, ending its involvement with the company.