First Security (FSGI) 8-K/A First Security Group Announces First Quarter Profits

First Security Group, Inc. and Subsidiary

Consolidated Balance Sheets

	March 31, 2015			December 31, 2014			March 31, 2014
(in thousands, except share amounts)	(unaudited)						(unaudited)
ASSETS
Cash and Due from Banks	$	14,486		$	18,447		$	7,896
Interest Bearing Deposits in Banks	7,569			29,582			11,503
Cash and Cash Equivalents	22,055			48,029			19,399
Securities Available-for-Sale	91,962			95,571			120,087
Securities Held-to-Maturity, at amortized cost (fair value - $124,563 at March 31, 2015; $128,058 at December 31, 2014 and $132,695 at March 31, 2014)	119,224			124,485			131,819
Loans Held-for-Sale	23,347			72,242			35,503
Loans	734,478			663,622			604,859
Less: Allowance for Loan and Lease Losses	8,650			8,550			9,200
Net Loans	725,828			655,072			595,659
Premises and Equipment, net	29,318			28,347			28,143
Bank Owned Life Insurance	29,362			29,204			28,649
Other Real Estate Owned	4,199			4,511			7,067
Other Assets	13,983			12,783			14,179
TOTAL ASSETS	$	1,059,278		$	1,070,244		$	980,505
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
Deposits
Noninterest Bearing Demand	$	160,128		$	159,996		$	150,075
Interest Bearing Demand	117,557			111,021			100,495
Savings and Money Market Accounts	265,269			258,694			204,007
Certificates of Deposit less than $250 thousand	244,891			151,089			284,931
Certificates of Deposit of $250 thousand or more	20,738			119,514			29,765
Brokered Deposits	114,969			105,299			72,559
Total Deposits	923,552			905,613			841,832
Federal Funds Purchased and Securities Sold under Agreements to Repurchase	13,292			12,750			12,661
Other Borrowings	24,500			56,000			37,585
Other Liabilities	7,208			5,901			3,773
Total Liabilities	968,552			980,264			895,851
SHAREHOLDERS’ EQUITY
Common Stock – $.01 par value – 150,000,000 shares authorized; 66,805,259 shares issued as of March 31, 2015; 66,826,134 shares issued as of December 31, 2014 and 66,635,101 shares issued as of March 31, 2014	766			766			764
Paid-In Surplus	197,908			197,614			196,841
Accumulated Deficit	(101,085		)	(101,625		)	(104,087		)
Accumulated Other Comprehensive Loss	(6,863		)	(6,775		)	(8,864		)
Total Shareholders’ Equity	90,726			89,980			84,654
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,059,278		$	1,070,244		$	980,505

First Security Group, Inc. and Subsidiary

Consolidated Statements of Operations

(unaudited)

	Three Months Ended
	March 31,
(in thousands, except per share data)	2015		2014
INTEREST INCOME
Loans, including fees	$	8,456	$	7,016
Investment Securities – taxable	841		1,060
Investment Securities – non-taxable	78		240
Other	18		13
Total Interest Income	9,393		8,329
INTEREST EXPENSE
Interest Bearing Demand Deposits	47		47
Savings Deposits and Money Market Accounts	203		130
Certificates of Deposit	474		613
Brokered Deposits	310		561
Other	27		53
Total Interest Expense	1,061		1,404
NET INTEREST INCOME	8,332		6,925
Provision (Credit) for Loan and Lease Losses	707		(972		)
NET INTEREST INCOME AFTER CREDIT FOR LOAN AND LEASE LOSSES	7,625		7,897
NONINTEREST INCOME
Service Charges on Deposit Accounts	674		741
Mortgage Banking Income	212		180
Gain on Sales of Securities Available-for-Sale	8		371
Gain on Sales of Loans	1,060		—
Other	2,527		1,343
Total Noninterest Income	4,481		2,635
NONINTEREST EXPENSES
Salaries and Employee Benefits	5,420		5,274
Expense on Premises and Fixed Assets, net of rental income	1,463		1,377
Other	4,538		3,794
Total Noninterest Expenses	11,421		10,445
INCOME (LOSS) BEFORE INCOME TAX PROVISION	685		87
Income Tax Provision	145		132
NET INCOME (LOSS)	540		(45		)
NET INCOME (LOSS) PER SHARE:
Net Income (Loss) Per Share – Basic	$	0.01	$	(0.00	)
Net Income (Loss) Per Share – Diluted	$	0.01	$	(0.00	)
Dividends Declared Per Common Share	$	—	$	—