First Security Group Chattanooga Tennessee

This is Roger Holly, he ran this place into the ground

Why is Roger  bald?

This crook is sitting on $75,000,000 in bad loans

This criminal bankrupted this place in record time

First Security Group Chattanooga, TN was founded in 2000, it didn’t take this management team long to bankrupt this place.  The company took $31MM in tax payer funded bailout money, which it has neglected to repay.   As a matter of fact, it hasn’t even paid interest on this tax payer funded debt since 11/09.  That’s a pretty good deal, an interest free tax payer funded loan!   That may be the reason they are on the problem bank list.  They entered into a consent agreement with the OCC on 4/10.  The Texas ratio is 72%, making it, probably the worst bank in Tennessee.

The company has assets of $1.2B with equity of $90MM.

However, the $31MM in tax payer funded bailout money, is debt not equity.  The resulting equity position is probably $59MM.

In relation to the equity base, the problem loan situation is daunting.  They have $12MM in loans that are 30-90 days past due, with get this $54MM on non accrual and $15MM in OREO.

So, they have $81MM in bad loans backed by $59MM in equity.

This bank is bankrupt!

How come they haven’t been closed down yet?

Besides being astute at making bad loans, this team is adept at losing money.  Net income was ($46MM) in FY10 and ($35MM) in FY09.  It didn’t take these people long to wipe out their investors.

Based on this financial performance, how are they going to pay back the $32MM that they owe  the tax payer.  Pay back the tax payer, they can’t even make interest payments.

Fortunately, the executive compensation wasn’t impacted.

Roger Holley   made $830K

William Lush made  $217K

Lloyd Montgomery made $663K

These boys got paid pretty well for destroying this bank and stealing $32MM in tax payer funds.

Roger and William resigned. Maybe they should be incarcerated.


Tags: , , ,

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: