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Park Sterling net income reaches $1.3 million in Q4

Staff Report
Published Feb. 8, 2013

Park Sterling Corp., a Charlotte-based holding company for Park Sterling Bank, reported net income of $1.3 million for the fourth quarter of 2012. This compares with a net loss of $982,000 for a similar period a year ago.

CEO James Cherry
CEO James Cherry
The increase in net income resulted primarily from increased earning assets, higher net interest margin and higher noninterest income associated with the merger with Gastonia, N.C.-based Citizens South Banking Corp., which was completed Oct. 1, the company said.

Net interest income totaled $19.5 million for the fourth quarter, up from $7.8 million for the same period in 2011.

For the year, Park Sterling reported net income of $4.3 million compared with a loss of $8.4 million for 2011. Results for 2012 included three months of operations from the merger with Citizens South and a full year of operations from Community Capital. Results for 2011 included two months of operations from the merger with Community Capital.

Net interest margin increased 128 basis points to 4.27% in 2012 compared with 2.99% in 2011. Noninterest income increased 621% to $11.6 million in 2012 compared with $1.6 million in 2011, driven both by acquired operations and organic growth.

Total assets increased 83% to $2 billion at the end of 2012.

"Park Sterling's fourth quarter marked the successful consummation of our merger with Citizens South and continued progress toward achieving our vision of creating a regional-sized community bank in the Carolinas and Virginia," said CEO James C. Cherry. "Park Sterling is now the largest community bank headquartered in the attractive Charlotte-Gastonia-Rock Hill MSA, with a strong deposit franchise extending through the Upstate region of South Carolina and into north Georgia, and an expanding presence in the important growth markets of Raleigh and Wilmington, N.C., and Greenville and Charleston, S.C.”

Park Sterling has 45 banking offices in three states. In the Columbia area, Park Sterling has branches in Newberry, Prosperity and Saluda.

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