Atlantic Southern Financial Group, Inc. reported unaudited earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, the company reported a net operating loss of $8.3 million, or $1.97 per diluted share compared to net loss of $0.35 million, or $0.08 per diluted share, in the third quarter of 2008. The net operating loss was primarily driven by elevated credit costs including an $11.4 million provision in the allowance for loan losses. Net loss was $8.3 million or $1.97 per diluted share compared to net loss of $0.35 million or $0.08 per diluted share for the same period a year ago. The net interest income for the quarter was $4.0 million compared to $6.0 million for the same period a year earlier, which represents a decrease of $2.0 million. Interest and dividend income was $11.3 million compared with $13.7 million for the same period a year ago. Operating loss before taxes was $12.7 million compared with $0.75 million for the same period a year ago. For the nine months, the company's net operating loss was $11.8 million or $2.80 per diluted share compared to net operating income of $1.6 million or $0.35 per diluted share for the same period a year ago. Net loss was $31.3 million or $7.44 per diluted share compared to net income of $1.6 million or $0.35 per diluted share for the same period a year ago. The net interest income for the period was $13.9 million compared to $18.3 million for the same period a year earlier, which represents a decrease of $4.4 million. Interest and dividend income was $35.5 million compared with $41.6 million for the same period a year ago. Operating loss before taxes was $18.5 million compared with operating income before taxes of $1.9 million for the same period a year ago. As on September 30, 2009, the company book value per share was $13.66. During the third quarter of 2009, the company charged off approximately $11.8 million primarily due to the impairment of several real estate loans.

Atlantic Southern Financial Group Inc. reported earnings results for the second quarter and six months ended June 30, 2009. The company reported a net operating loss of $4.3 million, or $1.01 per diluted share, for the second quarter of 2009. The net operating loss was primarily driven by elevated credit costs including a $5.7 million provision in the allowance for loan losses. The net operating loss does not reflect a $19.5 million non-cash charge for impairment of goodwill which is considered a non-recurring expense and therefore excluded from operating earnings. Including the goodwill impairment, the net loss for the quarter was $23.8 million, or $5.65 per share compared to net earnings of $708 thousand, or $0.17 per share, in the second #quarter of 2008. The net interest income for the second quarter of 2009 was $4.5 million compared to $6.0 million for the same period a year earlier, which represents a decrease of $1.5 million. Operating loss before taxes was $6.8 million compared to operating income of $0.92 million in the previous year period. Atlantic Southern's net operating loss for the first six months of 2009 was $3.5 million, or $0.83 per share. Including the non-recurring charge for goodwill impairment, the net loss for the first six months of 2009 was $23.0 million, or $5.47 per share compared to net earnings of $1.9 million, or $0.46 per share, for the first six months of 2008. The net interest income for the six months ended June 30, 2009 was $9.9 million compared to $12.2 million for the same period a year earlier, which represents a decrease of $2.3 million. Operating loss before taxes was $5.8 million compared to operating income of $1.9 million in the previous year period. The company also announced noncash goodwill impairment charge of $19.53 million for the second quarter of 2009. The Board of Directors of Atlantic Southern Bank has promoted Edward P. Loomis, Jr. to the role of President and Chief Executive Officer. Mr. Loomis most recently served as Executive Vice President and Chief Operating Officer of Atlantic Southern Bank. Mr. Loomis was previously Founder, President and CEO of First Macon Bank & Trust.

Atlantic Southern Financial Group Inc. announced that on May 27, 2009, the company amended its Articles of Incorporation to eliminate par value per share with respect to its common stock. Pursuant to the provisions of O.C.G.A. � 14-2-1002(7), Article 2(a) of the Articles of Incorporation of the Company is hereby amended to eliminate par value with respect to the Company�s common stock. Consistent with the provisions of O.C.G.A. � 14-2-601(g), solely for the purpose of any statute or regulation imposing any tax or fee based upon the capitalization of the Company, all authorized shares of the Company�s common stock shall henceforth be deemed to have a nominal par value of $0.01 per share; if any federal or other statute or regulation applicable to the Company requires that the shares of common stock of the Company have a par value, such shares of common stock shall henceforth be deemed to have such par value determined by the Board of Directors of the Company solely for the purpose of satisfaction of the requirements of the applicable statue or regulation. The amendment set forth in Article 2 hereof was duly adopted by the Board of Directors of the Company by resolution on May 21, 2009, pursuant to authority conferred upon the Board of Directors by the O.C.G.A. � 14-2-1002(7). Approval of the shareholders of the Company was not required. This amendment will be effective upon filing with the office of the Georgia Secretary of State. All other provisions of the Articles of Incorporation of the Company shall remain in full force and effect.