Banking

Park Sterling’s second-quarter profits up 30 percent

Charlotte-based Park Sterling Corp. said Thursday its second-quarter profits rose about 30 percent.
Charlotte-based Park Sterling Corp. said Thursday its second-quarter profits rose about 30 percent. mhames@charlotteobserver.com

The Charlotte-based parent company of Park Sterling Bank said Thursday its second-quarter profits grew about 30 percent from the same period last year, as revenue from lending and fees increased.

Park Sterling Corp. reported net income of $5.6 million compared with $4.3 million a year earlier. Earnings adjusted for costs related to mergers and acquisitions were 12 cents per share, versus 10 cents a year ago.

During the first quarter of this year, Park Sterling purchased Virginia’s First Capital Bancorp, recording roughly $5.2 million in merger-related costs. The deal marked the fourth acquisition for Park Sterling since it went public in 2010.

Park Sterling said second-quarter net income on an adjusted basis, which excludes merger costs and other items, rose about 45 percent to $6.4 million.

“For the quarter, we achieved higher profitability and returns driven by steady loan growth, strong increases in non-interest income sources and reduced expenses,” CEO Jim Cherry said in a statement.

The First Capital purchase also boosted Park Sterling’s assets. Assets now total $3.2 billion, up about 30 percent from a year ago.

The increase in assets helped fuel higher revenue. But Park Sterling’s net interest margin, a key measure of banks’ profitability, declined to 3.69 percent from 3.78 percent a year earlier. The bank said the decline was “significantly impacted” by the First Capital merger.

In the Charlotte metropolitan area, Park Sterling is the largest community bank based on market share by deposits, according to the most recent federal data.

Park Sterling shares closed down less than 1 percent to $7.67. The shares are up roughly 5 percent this year.

Rachel Stone: (704) 358-5334, @RStone1317

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