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Charlotte-based Park Sterling Bank said Monday that it earned $115,000 in the third quarter.
That was down 25 percent from the same period a year ago, but the bank highlighted robust growth in other areas. Deposits increased 24 percent from a year ago, assets increased 22 percent, and loans increased 11 percent. Profits for the first nine months of this year totaled $459,000, compared with a loss of $7,000 in the same period in 2008. The bank has two locations in Charlotte and one in Wilmington.
Chief executive Bryan Kennedy said that, despite a challenging economy, the bank is adding new clients who are "attracted to our 'comfortable banking' environment."
While troubled loans remained low, Kennedy said the bank is preparing for "a potential erosion of asset quality" by increasing reserves against potential losses. Christina Rexrode
Easier access to Merrill retirement accounts
Bank of America Corp. announced on Monday the launch of My Retirement Income, the latest sign of its continuing integration of Merrill Lynch.
The feature, within Merrill Lynch's retirement income service division, allows clients who are retired or nearing retirement to "automatically and seamlessly" transfer funds from a Merrill Lynch cash management account into a Bank of America deposit account periodically.
Sallie Krawcheck, who was tapped in August to lead Bank of America's global wealth and investment management division, said the service is "the latest demonstration of how the combination of Bank of America and Merrill Lynch offers our clients greater resources and solutions to help them pursue their retirement goals." Christina Rexrode
BofA stock slips after analyst's TARP report
Bank of America Corp. dropped as much as 7.1 percent in New York trading on Monday and the KBW Bank Index slid the most in three weeks after Rochdale Securities analyst Dick Bove said the lender may have to raise $45 billion in new capital before it can repay taxpayer funds.
The bank closed at $15.40 on Monday, down 5 percent for the day.
In a note sent to clients on Friday evening, titled "The Devil and Bank of America," Bove said the U.S. "apparently" wants the bank to raise $45 billion in a new capital offering before it can pay back the $45 billion it has borrowed from the government's Troubled Asset Relief Program. Selling new common (stock) would "meaningfully harm Bank of America's shareholders," he wrote.
"It may be evident to the politicians just how good they have it with this company," Bove wrote. "They can abuse it as much as they choose and get paid for doing so." He cited $2.9 billion a year in TARP dividends that the bank must pay, and warrants that have increased in value.
U.S. stocks dipped last Wednesday after Bove downgraded Wells Fargo & Co. to "sell" from "neutral," when he questioned the sustainability of Wells' earnings.
Bloomberg News
