DECATUR, Ga. -- Prime Bank restated first-quarter performance as a loss because of a mandated change in accounting.

The federal savings bank said the Office of Thrift Supervision directed it to make the change with respect to mortgage-backed and investment securities.

The thrift unit of Prime Bancshares, which has $680 million in assets, said a resulting $4.5 million provision for unrealized losses on the portfolio caused a net operating loss for the quarter of $2.1 million, instead of the net earnings of $739,000 originally reported.

The OTS said the investment portfolio should be redesignated as securities held for sale, requiring the holdings to be listed at the lower of cost or market value at March 31. Prime said the market value of its investment and securities portfolio has since risen about $2.1 million.

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