First Security Group, Inc. (NASDAQ: FSGI), today reported a net loss available to common shareholders of $1.6 million, or $0.10 per diluted share, for the first quarter of 2010. This compares to a net loss available to common shareholders of $3.1 million, or $0.20 per diluted share, in the fourth quarter of 2009. During the first quarter, First Security recorded a $4.4 million provision for loan and lease losses.
- Strategic Initiatives: First Security continues to implement initiatives to improve asset quality, return to profitability and better position the Company for greater opportunities in the future.
- Capital: First Security is committed to maintaining strong capital levels; current capital levels place FSGBank in the top 70 th percentile of peer institutions, based on the December 31, 2009 Uniform Bank Performance report for all commercial banks between $1 billion and $3 billion in total assets.
- Deposit Growth: First Security’s savings and transaction deposits, which include savings accounts, money market accounts, interest-bearing and non-interest bearing checking accounts, grew by $14.3 million on a linked quarter basis; these in-market customer deposits totaled $405.5 million at March 31, 2010.
- Expense Control: First Security continues to closely manage controllable expenses during these challenging economic conditions. Salaries and benefits, the largest component of noninterest expense, declined by 7.6 percent on a year-over-year basis.
“Over the past six months, our management team has successfully executed and completed many strategic initiatives. We have fortified the balance sheet with liquid assets, strengthened our credit underwriting processes, reduced balance sheet risks and controlled our overhead expenses. These initiatives will position us to return to profitability and growth as the economy improves,” said Rodger B. Holley, Chairman, CEO and President of First Security. “Given the difficult economic conditions, increasing unemployment and related credit costs over the last twelve to eighteen months, it made sense for us to take a close look at the Bank’s credit risk management. While we are implementing a centralized approach to lending, we remain committed to providing superior customer service and maintaining local knowledge of our markets through our experienced bankers and lenders.”