Federal regulators have lifted the consent order for FSG Bank in Chattanooga, removing the extra regulatory oversight and limits on Chattanooga's biggest independent bank.
FSG Bank announced today that Office of the Comptroller of the Currency has ended the consent order placed on the bank in April 2010 after the bank reported hefty losses from the Great Recession. FSG, which lost more than $100 million from 2010 through 2012, was recapitalized last year through the sale of $91.1 million of additional stock from outside investors.
FSG is now considered to be "well capitalized" under regulatory guidelines and board actions will be under less regulation and review.
"We view this as a culmination of years of hard work and dedication to fulfilling a vision of establishing the framework for a great community bank," FSG Chief Financial Officer John Haddock said today. "Now we are able to focus all of our energy and attention towards being a premier community bank and serving our communities.
FSG, a subsidiary of First Security Group, was founded in 1999 and has assets of about $1 billion.