First Security 8K Regulation FD Disclosure | FSGI 12 Feb 08

February 12, 2008

Southeast SuperCommunity Bank
Conference

This presentation contains forward-looking statements, as defined by
Federal securities laws, relating to present or future trends or factors
affecting the operations, markets and products of First Security Group, Inc.
These statements are provided to assist in the understanding of future
financial performance. Any such statements are based on current
expectations and involve a number of risks and uncertainties. For a
discussion of factors that may cause such forward-looking statements to
differ materially from actual results, please refer to First Security’s most
recent documents filed with the Securities and Exchange Commission.

First Security undertakes no obligation to release revisions to these
forward-looking statements or reflect events or circumstances after the
date of this presentation.

Forward-Looking Statements

GAAP Reporting versus
Operating Results

This presentation contains references to operating results. These
amounts and ratios are calculated using net operating income (net of tax)
which excludes extraordinary items as defined by GAAP and non-
recurring items. Furthermore and in accordance with SNL Financial
practice, the core efficiency ratio is calculated on a fully tax equivalent
basis excluding one-time and non-cash items. Since these items and
their impact on First Security's performance are difficult to predict, First
Security believes presentation of its financial measures excluding the
impact of these items is useful information and important for a complete
understanding of its core operating results. Reconciliations for each core
number are included in the first quarter earnings release which is
available on First Security’s website, www.FSGBank.com.

• Headquartered in Chattanooga, Tennessee

• Over eight years in operation as First Security; founded in
September 1999 by current management team

• Assets of $1.2 billion

• 40 banking offices and 4 loan/leasing offices in
Tennessee and north Georgia

• Strategic focus on small to medium-sized owner-
managed businesses and consumers

FSGI Corporate Profile

* Based on 1/31/08 closing price of $8.61

FSGI Market Statistics

• 16.8 million shares outstanding

• Listed on NASDAQ Global Market in
August 2005

• Market capitalization of $144 million*

• Institutions hold 32.3% of shares

• Average daily trading volume (3 mos.)
is 34,756 shares

Management Team with
Extensive In-Market Experience

Directors and executive management own 6.44% of FSGI

ESOP owns 2.98% of FSGI

We Target Dislocated Customers and Hire Their Bankers

Capitalizing on Recent Bank
Consolidations within Footprint

Organized into Six Regions

• Regional bank presidents

• Local decision-making

• Local advisory boards

• Local strategies and identities

• Knowledge of local markets

• Serve small and medium-sized
businesses within each
market

• Customers get to know their
bankers

~ A Focus on Personalized Sales and Service ~

5-yr. CAGR1 Loan Growth: 22.3%

5-yr. CAGR1 Core Deposit2 Growth: 14.7%

1 5-year CAGR from 2002 to 2007

2 Core deposits = Transaction accounts + Savings + NOW + Retail CDs

Strong Core Deposit & Loan Growth

Commercial
Leases, 4.3%

Consumer,

6.8%

1-4 Family

Residential,

27.5%

Multi-Family,
1.2%

C&I,

14.5%

Commercial

RE, 23.0%

Construction/

Land Development,

22.7%

Total loans = $953.1 million at December 31, 2007

Owner-occupied = 59%

Portfolio Mix Reflects Market
Opportunities

$216.6 MM

at December 31, 2007

Residential
Construction

32%

Residential A&D

33%

Commercial

Construction

35%

• Loan commitments of $249 MM
with $96 MM (39%) unfunded

• Granular: Top 10 relationships
total 27% of commitments

• Asset quality high:

• 2007 NCOs were $42k

• NCOs for previous 3 years ~$100k

• NPAs = $1.8 million

• 99% of borrowers in-market

• 95%+ projects are in-market

Construction & Development Loans

• 68.0% core deposits

• Avg. cost of deposits is 3.41%

Total Deposits = $902.6 million at December 31, 2007

Brokered Deposits, 7.1%

CDs > $100M,
25.0%

CDs < $100M, 28.8%

Savings & MM, 14.5%

Interest-Bearing
DDAs, 6.9%

Non-Interest DDAs, 17.7%

Deposits are Low-Cost & Stable

Non- Performing Assets + 90 days
as a % of Total Assets

Quarter-End

Year-End

Quarter-End

Asset Quality Remains Sound

Repossessed Assets = $1.8 million

Other Real Estate = $2.5 million

Const. Equip,
9.9%

Trucking,
69.4%

Mining,

8.3%

C&D,
65.5%

CRE,
25.7%

Residential Real
Estate, 8.8%

NPAs + 90 Days Past Due =

$9.9 million, or 0.82% of Total Assets

Nonaccrual,
33.9%

OREO,
24.7%

Repossessed
Assets,
18.4%

90+ Days,
23.0%

Autos & other,

12.4%

Repos & OREO

Nonperforming Assets

Loans on Nonaccrual = $3.4 million

Loans 90 Days Past Due = $2.3 million

C&I,
22.3%

Leases,
51.4%

Residential
Real Estate,
19.4%

Other, 6.9%

C&D,
45.7%

Residential
Real Estate,
49.1%

Other, 5.2%