Summary of FIRST SECURITY GROUP INC/TN

Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.

On November 27, 2012, First Security Group, Inc. (the "Company") received notice from the Hearings Panel of The NASDAQ Stock Market LLC ("NASDAQ") indicating that the Hearings Panel agreed to continue trading of the shares of the Company until March 25, 2013 subject to certain conditions described in the letter. As discussed in the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on September 28, 2012, NASDAQ previously informed the Company that it would be subject to delisting based on the Company's non-compliance with the minimum $5 million market value of publicly held share requirement set forth in NASDAQ Listing Rule 5450(b)(1)(C).

Under the terms of the letter received from the NASDAQ Hearings Panel, the Company's common stock will continue to be listed on the NASDAQ Global Market, subject to the following conditions:

1. On or before December 31, 2012, the Company must notify the Hearings Panel that the U.S. Treasury, holder of the Company's Series A Preferred Stock issued under the Troubled Asset Relief Program, has approved the Company's request to restructure the Series A Preferred Stock as part of the Company's recapitalization efforts and provide the Hearings Panel with a progress report with respect to the Company's compliance plan, including an updated timeline of events for completing the plan of compliance.

2. On or before March 25, 2013, the Company shall have executed its plan of compliance and announced on a Current Report on Form 8-K that it meets all requirements for continued listing on the NASDAQ Global Market.

The Company is diligently working to meet the above conditions. Should the Company not be able to meet the above conditions, NASDAQ may transfer trading of the Company's common stock to the NASDAQ Capital Market.