First Security Group, Inc. (NASDAQ: FSGI), today reported a net loss available to common shareholders of $2.7 million, or $0.17 per diluted share for the second quarter of 2010.
The economic slowdown continues to produce elevated credit costs for many financial institutions including First Security. The provision for loan and lease losses combined with other asset quality expenses significantly impacted the second quarter 2010 results.
- 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. The necessary resources are being devoted to develop and execute the strategic initiatives.
- Capital: First Security remains committed to maintaining appropriate capital levels. The tangible equity to tangible assets ratio as of June 30, 2010 was 10.17 percent.
- Liquidity: First Security’s balance sheet is fortified with liquid assets to fund future contractual obligations and prudent investments, such as loans to credit worthy customers. As of June 30, 2010, First Security held over $230 million in an interest bearing account at the Federal Reserve Bank of Atlanta.
“Important work is underway and, in some cases, completed, to better position First Security for short-term challenges and long-term opportunities,” said Rodger B. Holley, Chairman, CEO and President of First Security. “First Security, along with many other banks, is addressing credit issues related to the national and regional economic slowdown and the corresponding increase in unemployment. Although we currently face headwinds due to the current economic environment, we are still focused on First Security’s goal of being the community bank of choice in each market that we serve.”
First Security is reengineering to enhance centralized oversight and control while maintaining local knowledge of its markets and thus strengthening First Security’s commitment to superior customer service. Credit functions have been aligned by retail and commercial lines of business with dedicated credit officers and staff supporting each portfolio. Loan underwriting, collections and loan document areas have been centralized to ensure consistency, increase effectiveness and provide higher levels of operational efficiencies.