FLORENCE, Ala. - First Southern Bancshares announced Monday that it would report a loss for the fourth quarter and the year, primarily because of a number of loan chargeoffs.

Charles Frederick Jr., president of the $171 million-asset company, said that the yearend loss will hurt the company's regulatory capital level but that he does not know by how much. The company has been in talks with regulators who have promised to act if the losses reduce First Southern's capital below the regulatory minimum, he said.

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