First Security Group, Inc., Chattanooga, Tennessee, has agreed to acquire Jackson Bank & Trust, Gainesboro, Tennessee, in a cash transaction valued at approximately $33.1 million. Under the terms of the deal, Jackson shareholders will receive $92 in cash for each Jackson share, subject to the restriction that if completion does not occur by July 31, 2005, the consideration will accrue interest at the Federal Funds rate plus 1.5%. The announced deal price represents approximately 186% of Jackson’s book value as of March 31, 2005. Jackson Bank & Trust currently operates five offices in Jackson and Putnam Counties and has approximately $171 million in assets. First Security Group operates 29 offices and has approximately $800 million in assets. The Carson Medlin Company is serving as financial advisor to First Security Group in this transaction.