Bank’s Changes• A 10-for-1, reverse stock split is being proposed to help FSG boost its per share price to keep its listing on the Nasdaq Exchange• New executives hired or promoted this spring are being paid far less than their predecessors• Crowe Horwath LLP is replacing Joseph Decosimo and Co. PLLC as bank auditors• Ralph Cof-fman Jr., the new FSG CEO, is nominated also to serve as bank chairman.Source: Proxy statement for Sept. 13 annual shareholders meeting for First Security Group
With its stock falling Thursday to an all-time low, First Security Group is asking its shareholders to approve a reverse stock split to boost the company’s share price enough to maintain its listing on the Nasdaq Exchange.
FSG shareholders will vote at an annual meeting Sept. 13 whether to trade 10 shares of their existing stock for one new share in Chattanooga’s biggest independent bank.
The reduction in outstanding stock from 16 million share to 1.6 million shares, combined with ongoing changes in management, auditors and bank operations, are intended to boost FSG’s stock price and financial standing.
In the previous two years, FSG lost nearly $82 million and its stock sunk Thursday to an all-time low of 39 cents per share, down 3 cents on the day. FSG’s stock traded above $11 per share five years ago.