CHATTANOOGA, Tenn., Sept. 1, 2005 (PRIMEZONE) -- First Security Group, Inc. (Nasdaq:FSGI) today announced the completion of its acquisition of Jackson Bank and Trust (Jackson Bank), a 5-branch community bank headquartered in Gainesboro, Tennessee. First Security acquired 100% of the outstanding stock of Jackson Bank for $92.39 per share in cash, or approximately $33.3 million excluding acquisition costs, which was funded through a public offering of First Security's common stock on August 10, 2005. With the addition of Jackson Bank's approximately $170 million in assets, First Security's total assets will exceed $1 billion.
"We are pleased to welcome Jackson Bank & Trust to First Security Group," said Rodger B. Holley, First Security chairman and chief executive officer. "Jackson Bank is a valuable franchise in an attractive market. We plan to build a platform based on Jackson Bank's excellent reputation in Putnam and Jackson counties, expanding along Highway I-40 between Nashville and Knoxville. Jackson Bank's commitment to personal service is consistent with the First Security's philosophy and culture. This personalized approach to banking continues to be our primary focus as we expand into new communities."
Jackson Bank Chairman Jim Nelson Birdwell added, "We believe the combination will benefit our customers and our employees, and provide liquidity for our existing shareholders." Jackson Bank will continue to operate under the Jackson Bank name, but the bank has been merged into FSGBank, N.A., a subsidiary of First Security Group. Charlotte Suggs, formerly Senior Vice President and City Manager for JB&T, has been named Regional President for First Security and will oversee daily operations at Jackson Bank.
About First Security Group, Inc.:
First Security Group, Inc. is a bank holding company headquartered in Chattanooga, TN with approximately $1.0 billion in assets. Founded in 1999, First Security Group's community bank subsidiary, FSGBank, N.A. has 35 full-service banking offices along the interstate corridors of East Tennessee and Northwest Georgia. In Dalton, GA, FSGBank operates five full-service banking offices under the name of Dalton Whitfield Bank and two offices under the name Primer Banco Seguro (PBS); PBS serves the region's rapidly growing Latino population. FSGBank also operates under the name of Jackson Bank & Trust along the I-40 corridor. FSGBank provides retail and commercial banking services, trust and investment management, mortgage banking, asset-based lending, financial planning, Internet banking (www.FSGBank.com) and equipment leasing through its wholly-owned subsidiaries, Kenesaw Leasing, Inc. and J & S Leasing Inc.
Forward Looking Statements
Some of the statements in this press release, including, without limitation, statements regarding our proposed acquisition and other statements regarding our future results of operations are "forward-looking statements" within the meaning of the federal securities laws. In addition, when we use words like "anticipate", "believe", "intend", "expect", "estimate", "could", "should", "will", and similar expressions, you should consider them as identifying forward-looking statements, although we may use other phrasing.
These forward-looking statements involve risks and uncertainties and are based on our current beliefs and assumptions. Factors that may cause actual results to differ materially from those expressed or implied by such forward-looking statements include, among others, the following possibilities: (1) failure to grow or effectively manage our growth, both organically and through acquisitions, may affect our financial condition and results of operation; (2) failure to realize the expected benefits from the acquisition of Jackson Bank could occur because of unforeseen expenses and integration issues; (3) future expansion and acquisitions or mergers may involve potential risk and uncertainties; (4) changes in the interest rate environment could reduce profitability; (5) loan losses could result from a decline in credit quality; (6) a decline in the local economies of the counties in which we do business may have an adverse impact on our operations; (7) the unavailability of capital may affect our ability to fund future growth; (8) strong competition from larger, more established competitors may affect our ability to attract deposits and make loans; (9) a decline in economic conditions in our core market could result in a material decline in the value of real estate, resulting in a significant portion of our loan portfolio becoming under-collateralized; (10) our recent results may not be indicative of our future results; (11) our ability to diversify our lending risks is limited by our local markets and economics; (12) extensive regulation could limit or restrict our activities and impose financial requirements or limitations on the conduct of our business (13) the ability of others to acquire us is limited by Tennessee law and our charter; (14) changes in monetary policies may have an adverse effect on our business; (15) failure to retain key employees could affect our growth and profitability; (16) our inability to promptly deploy the capital raised in the offering could adversely affect our profitability. Many of these factors are beyond our ability to control or predict, and readers are cautioned not to put undue reliance on such forward-looking statements. We disclaim any obligation to update or revise any forward-looking statements contained in this release.
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