First Security (FSGI) 8-K First Security Group Announces 2013 Earnings

First Security Group, Inc. and Subsidiary

Consolidated Balance Sheets

	December 31, 2013			December 31, 2012
(in thousands)	(unaudited)
ASSETS
Cash and Due from Banks	$	10,742		$	12,806
Interest Bearing Deposits in Banks	10,126			159,665
Cash and Cash Equivalents	20,868			172,471
Securities Available-for-Sale	172,830			254,057
Securities Held-to-Maturity, at amortized cost (fair value - $132,104)	132,568			—
Loans Held for Sale	220			25,920
Loans	583,097			541,130
Less: Allowance for Loan and Lease Losses	10,500			13,800
Net Loans	572,597			527,330
Premises and Equipment, net	27,888			29,304
Bank Owned Life Insurance	28,346			27,576
Intangible Assets, net	330			600
Other Real Estate Owned	8,201			13,441
Other Assets	13,726			12,856
TOTAL ASSETS	$	977,574		$	1,063,555
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
Deposits
Noninterest Bearing Demand	$	144,365		$	141,400
Interest Bearing Demand	95,559			86,575
Savings and Money Market Accounts	206,125			184,597
Certificates of Deposit less than $100 thousand	182,408			228,144
Certificates of Deposit of $100 thousand or more	153,750			201,873
Brokered Deposits	75,062			165,477
Total Deposits	857,269			1,008,066
Federal Funds Purchased and Securities Sold under Agreements to Repurchase	12,520			12,481
Security Deposits	14			58
Other Borrowings	20,000			—
Other Liabilities	4,123			13,840
Total Liabilities	893,926			1,034,445
SHAREHOLDERS’ EQUITY
Preferred Stock – no par value – 10,000,000 shares authorized; no shares issued as of December 31, 2013; 33,000 issued as of December 31, 2012; Liquidation value of $0 at December 31, 2013 and $38,156 as of December 31, 2012	—			32,549
Common Stock – $.01 par value – 150,000,000 shares authorized; 66,602,601 shares issued as of December 31, 2013 and 1,772,342 issued as of December 31, 2012	764			115
Paid-In Surplus	196,536			106,531
Common Stock Warrants	—			2,006
Unallocated ESOP Shares	—			—
Accumulated Deficit	(104,042		)	(115,391		)
Accumulated Other Comprehensive (Loss) Income	(9,610		)	3,300
Total Shareholders’ Equity	83,648			29,110
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	977,574		$	1,063,555

First Security Group, Inc. and Subsidiary

Consolidated Statements of Operations

(unaudited)

	Three Months Ended						Year Ended
	December 31,						December 31,
(in thousands, except per share data)	2013			2012			2013			2012
INTEREST INCOME
Loans, including fees	$	6,562		$	6,975		$	26,099		$	31,264
Investment Securities – taxable	1,224			740			4,366			3,528
Investment Securities – non-taxable	323			226			1,071			1,006
Other	40			125			378			512
Total Interest Income	8,149			8,066			31,914			36,310
INTEREST EXPENSE
Interest Bearing Demand Deposits	46			63			259			191
Savings Deposits and Money Market Accounts	142			214			770			1,045
Certificates of Deposit of less than $100 thousand	387			618			1,938			2,681
Certificates of Deposit of $100 thousand or more	395			606			1,953			2,554
Brokered Deposits	682			1,324			3,554			5,863
Other	19			50			70			396
Total Interest Expense	1,671			2,875			8,544			12,730
NET INTEREST INCOME	6,478			5,191			23,370			23,580
(Credit) Provision for Loan and Lease Losses	(955		)	10,373			(2,735		)	20,866
NET INTEREST INCOME AFTER PROVISION FOR LOAN AND LEASE LOSSES	7,433			(5,182		)	26,105			2,714
NONINTEREST INCOME1
Service Charges on Deposit Accounts	800			872			3,097			3,032
Mortgage Banking Income	208			256			1,135			974
Gain on Sales of Securities Available-for-Sale	168			11			322			154
Other	1,012			973			4,129			3,986
Total Noninterest Income	2,188			2,112			8,683			8,146
NONINTEREST EXPENSES1
Salaries and Employee Benefits	5,503			5,535			22,584			20,446
Expense on Premises and Fixed Assets, net of rental income	1,341			1,407			5,644			5,469
Other	3,304			4,392			19,532			21,744
Total Noninterest Expenses	10,148			11,334			47,760			47,659
LOSS BEFORE INCOME TAX PROVISION (BENEFIT)	(527		)	(14,404		)	(12,972		)	(36,799		)
Income Tax Provision (Benefit)	119			1,173			477			771
NET LOSS	(646		)	(15,577		)	(13,449		)	(37,570		)
Preferred Stock Dividends	—			(413		)	(929		)	(1,650		)
Accretion on Preferred Stock Discount	—			(109		)	(452		)	(428		)
Effect of Exchange of Preferred Stock to Common Stock	—			—			26,179			—
NET (LOSS ALLOCATED) INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	(646	)	$	(16,099	)	$	11,349		$	(39,648	)
NET INCOME (LOSS) PER SHARE:
Net Income (Loss) Per Share – Basic	$	(0.01	)	$	(9.90	)	$	0.24		$	(24.58	)
Net Income (Loss) Per Share – Diluted	$	(0.01	)	$	(9.90	)	$	0.24		$	(24.58	)
Dividends Declared Per Common Share	$	—		$	—		$	—		$	—
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic	66,603			1,626			46,500			1,613
Diluted	66,603			1,626			46,500			1,613
1 Certain amounts were reclassified between non-interest income and non-interest expense to confirm with the current presentation.