Unconventional Capital Wisdom
Value, long-term horizon, worldly wisdom, growth at reasonable price

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...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details