Unconventional Capital Wisdom
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First Security Group Continues Transformation, Yet Still Undervalued

In July of last year, we wrote how First Security Group's (NASDAQ:FSGI) recent recapitalization was similar to Central Pacific Financial Corp.'s (NYSE:CPF) recapitalization in 2011. Both were backed by a group of wise value investors, and that the extra capital would allow the banks to right their ships. Our case study with Central Pacific Financial Corp. showed how investing in a recapitalized bank could be a bargain. Since eight months have passed since our last write-up, we feel it is necessary to take a look at First Security Group to see if the bank has been performing to expectations post-recapitalization, and if the shares are still trading below intrinsic value.

Balance Sheet Restructuring

First Security Group's...

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