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First Security Group, headed by Michael Kramer, has added three executives and a board member as it digs its way out from under a regulatory consent order.
February 16 -
First Security Group (FSGI) in Chattanooga, Tenn., has completed a $5 million rights offering. The offering followed the company's April recapitalization, in which it raised $91.1 million from institutional and other accredited investors.
September 25 -
First Security Group (FSGI) in Chattanooga, Tenn., is poised to raise $90 million from institutional investors.
February 26
The Office of the Comptroller of the Currency has lifted a regulatory enforcement action against First Security Group (FSGI) unit FSGBank.
The April 2010 OCC order had required the Chattanooga, Tenn., bank to raise capital and resolve asset quality problems. The $1 billion-asset bank had
FSGBank hired Triumph Investment Managers in May 2011 to develop a capital plan. Later that year, the bank conducted a 1-for-10 reverse stock split and
Last year, four institutional investors led a recapitalization that raised $91.1 million. At the same time, FSGBank announced that it sold nonperforming loans with outstanding balances of $36.2 million.
Overall, the recapitalization raised FSGBank's Tier 1 leverage ratio to 8.5% from 2.5%, and its total risk-based capital ratio to 16.7% from 5.8%.
"The lifting of the consent order removes significant operational and financial constraints while enhancing our ability to execute our strategic plan," Michael Kramer, First Security's president and chief executive, said in a press release Tuesday. "We can now direct more of our time and energy toward returning to core profitability and building long-term shareholder value."