Atlantic Southern Financial Group Inc. reported a $4 million net loss for the second quarter, compared with a $23.8 million loss a year earlier.

The Macon, Ga., parent company of Atlantic Southern Bank said Friday that the narrower loss stemmed primarily from a $2 million addition to its loan-loss reserve and the payment of $1.4 million in quarterly assessments to the Federal Deposit Insurance Corp. In the second quarter of 2009, the $911.6 million-asset company had a $19.5 million goodwill impairment charge.

Atlantic Southern's net interest margin fell to 1.82%, from 1.94% the year earlier, as nonperforming loans increased, preventing the company from collecting interest on them. Nonperforming assets as of June 30 were up 9.5%, to $150.1 million, compared with $137 million as of Dec. 31.

The company's president and chief executive, Mark Stevens, said in a press release that the net interest margin should rebound "as credit quality improves over the next several quarters."

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.