August 18, 2009

Spartanburg-based First National Bancshares Inc. said it lost $20 million during the second quarter and doesn't expect to meet its minimum capital requirements by the Aug. 25 deadline set by its federal regulator.In a filing with the U.S. Securities and Exchange Commission on Friday, the holding company for First National Bank of the South said its nonperforming assets increased 54 percent to $116.6 million, compared with $75.5 million at the end of 2008.

The company said the second-quarter loss reflected an increase in the bank's noncash provision for loan losses to $18 million, compared with less than $1 million during the same period last year.It said the loss also included a one-time charge for increased insurance premiums assessed on all banks by the Federal Deposit Insurance Corp., which it is using the money to rebuild its deposit insurance fund.