First Security Group, Inc. Completes Rights Offering

  First Security Group, Inc. Completes Rights Offering

Business Wire

CHATTANOOGA, Tenn. -- September 27, 2013

First Security Group, Inc. (NASDAQ: FSGI) (the “Company” or “First Security”),
the bank holding company for FSGBank, N.A. (“FSGBank”), announced today the
completion of the Company’s previously announced rights offering, which
expired at 5:00 p.m. Eastern Time on September 20, 2013.

The Company received gross proceeds of approximately $5.0 million from the
rights offering and issued 3,329,234 shares of Company common stock in
connection with the rights offering.

The rights offering was for shareholders of record as of April 10, 2013, who
were provided the right to purchase two shares of Company common stock for
every share owned as of the record date, as well as the opportunity to request
additional shares of Company common stock, if available. The subscription
price was $1.50 per share with a maximum of 3,329,234 shares of Company common
stock available, or approximately $5.0 million.

The Company intends to use the net proceeds from the rights offering to
supplement the capital of FSGBank.

Raymond James & Associates, Inc. acted as dealer manager for the Company in
the rights offering.

About First Security Group, Inc.

Founded in 1999, First Security's community bank subsidiary, FSGBank, has 30
full-service banking offices along the interstate corridors of eastern and
middle Tennessee and northern Georgia. In Dalton, Georgia, FSGBank operates
under the name of Dalton Whitfield Bank; along the Interstate 40 corridor in
Tennessee, FSGBank operates under the name of Jackson Bank & Trust. FSGBank
provides retail and commercial banking services, trust and investment
management, mortgage banking, financial planning and Internet banking services
(www.FSGBank.com).

Note Regarding Forward Looking Statements

Some of our statements contained in this release are “forward-looking
statements” within the meaning of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements relate to future events or our future
financial performance and include statements about the Company’s future growth
and market position and the execution of its business plans. When we use words
like “may,” “plan,” “contemplate,” “anticipate,” “believe,” “intend,”
“continue,” “expect,” “project,” “predict,” “estimate,” “could,” “should,”
“would,” “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 beliefs and assumptions, and on the information available to us at the
time that these disclosures were prepared.

These forward-looking statements involve risks and uncertainties and may not
be realized due to a variety of factors. There can be no assurance that the
actual results, performance or achievements of the Company will not differ
materially from those expressed or implied by forward-looking statements. For
details on the factors that could affect expectations, see the cautionary
language included under the headings “Risk Factors” and “Management’s
Discussion and Analysis of Financial Condition and Results of Operations” in
the Company’s Annual Report on Form 10-K for the year ended December 31, 2012
and the Company’s Quarterly Report on Form 10-Q for the quarters ended March
31, 2013 and June 30, 2013, and other filings with the SEC.

Many of these risks are beyond our ability to control or predict, and you are
cautioned not to put undue reliance on such forward-looking statements. First
Security does not intend to update or reissue any forward-looking statements
contained in this release as a result of new information or other
circumstances that may become known to First Security, and undertakes no
obligation to provide any such updates.

All written or oral forward-looking statements attributable to us are
expressly qualified in their entirety by this Note. Our actual results and
condition may differ significantly from those we discuss in these
forward-looking statements.

Contact:

First Security Group, Inc.
John R. Haddock, CFO, 423-308-2075
jhaddock@FSGBank.com
 
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