First Security 8K Gulf South Bank Conference | FSGI 1 May 08

Gulf South Bank Conference

May 1, 2008

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 $1.25 billion

• 39 banking offices and 5 loan/leasing offices in
Tennessee and north Georgia

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

FSGI Corporate Profile

FSGI Market Statistics

• 16.5 million shares outstanding

• Listed on NASDAQ Global Market in
August 2005

• Market capitalization of $149 million*

• Institutions hold 31% of shares

• Average daily trading volume (3 mos.)
is 20,440 shares

* Based on 4/22/08 closing price of $9.05

Management Team with
Extensive In-Market Experience

Name	Title	Age	Years in Banking	Previous Experience
Rodger Holley	CEO	60	33	Pioneer
Monty Montgomery	COO	54	30	First American
Chip Lusk	CFO	40	18	Pioneer
Larry Richey	Senior Corp. Lending Officer	59	29	Bank of America
David Haynes	Senior Corp. Credit Officer	55	32	AmSouth

Directors and executive management own 6.44% of FSGI

ESOP owns 3.04% of FSGI

Capitalizing on Recent Bank
Consolidations within Footprint

Acquirer	HQ State	Target	Year
Regions Financial Corp.	AL	AmSouth Bancorp.	2006
BB&T Corp	NC	First Citizens Bancorp	2006
SunTrust Banks Inc.	GA	National Commerce Financial Corp.	2004
Regions Financial Corp.	AL	Union Planters Corp.	2004
BB&T Corp	NC	BankFirst Corp.	2000
BB&T Corp.	NC	Hardwick Holding Co.	2000
AmSouth Bancorp.	AL	First American Corp.	1999
First American Corp.	TN	Pioneer	1998

We Target Dislocated Customers and Hire Their Bankers

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 ~

Solid Core Deposit & Loan Growth

5-yr. CAGR1 Loan Growth: 24.6%

5-yr. CAGR1 Core Deposit2 Growth: 7.8%

1 5-year CAGR based on an annualized growth rate for 2008

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

Diversified Loan Portfolio

Commercial
Leases, 4.0%

Consumer,

6.1%

1-4 Family

Residential,

27.9%

Multi-Family,
1.7%

C&I,

15.1%

Commercial

RE, 22.8%

Construction/

Land Development,

22.4%

Total loans = $977.4 million at March 31, 2008

Owner-occupied = 62%

Construction & Development Loans

$218.8 MM

at March 31, 2008

Residential
Construction

36%

Residential A&D

32%

Commercial

Construction

21%

• Loan commitments of $237 MM
with $81 MM (34%) unfunded

• Granular: Top 10 relationships
total 39% of commitments

• Asset quality high:

• 2007 & 2008 NCOs were $94k

• NCOs for previous 3 years ~$150k

• NPAs = $4.1 million

• 99% of borrowers in-market

• 95%+ projects are in-market

Comm. A&D

11%

Deposits: Stable Core Funding

Total Deposits = $935.5 million at March 31, 2008

Brokered Deposits, 10.1%

CDs > $100M,
23.5%

CDs < $100M, 27.1%

Savings & MM, 14.5%

Interest-Bearing
DDAs, 7.4%

Non-Interest DDAs, 17.4%

Asset Quality

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

2007

2008

Repossessed Assets = $1.6 million

Other Real Estate = $3.5 million

Const. Equip,
12.2%

Trucking,
64.5%

Mining,

9.3%

C&D,
78.6%

CRE,
17.9%

Residential Real
Estate, 3.5%

Nonperforming Assets

NPAs + 90 Days Past Due =

$11.7 million, or 0.94% of Total Assets

Nonaccrual,
43.2%

OREO,
30.1%

Repossessed
Assets,
14.1%

90+ Days,
12.6%

Autos & other,

14.0%

Repos & OREO

Loans on Nonaccrual = $5.0 million

Loans 90 Days Past Due = $1.5 million

C&D,
27.2%

CRE,
16.5%

Leases,

33.2%

Other, 0.7%

C&D,
32.1%

Residential
Real Estate,
56.7%

Other, 3.4%

Nonperforming Assets

Nonaccrual & Delinquent

Residential
RE, 9.5%

C&I,
12.9%

CRE,
7.8%