FSG narrows third quarter loss

FSG narrows third quarter loss

November 14th, 2013 by Dave Flessner in Local - Breaking News

FSG Bank

FSG Bank

Photo by John Rawlston /Times Free Press.

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.