Park Sterling Bank Announces Third Quarter 2010 Earnings
Park Sterling Bank (NASDAQ: PSTB) (“Park Sterling” or the “Bank”) today released its unaudited results of operations and other financial information for the three-months ended September 30, 2010. Highlights for the quarter include:
- Completed successful public offering of 23.1 million shares of common stock priced at $6.50 per share; raised gross proceeds of $150.2 million
- Increased tangible common equity-to-tangible assets to 29.06%, up from 9.56% in second quarter of 2010 and 9.81% in the third quarter of 2009
- Expanded executive management team and reconstituted board of directors
- Fully engaged in new strategy to expand in the Carolinas and Virginia through combination of whole-bank mergers and acquisitions and organic growth
- Recorded net loss of $3.7 million, or $0.23 per weighted average diluted share, compared to net income of $0.2 million for the second quarter of 2010 and $0.1 million for the third quarter of 2009
- Recorded provision for loan losses of $6.1 million; related to implementation of refinements to loan loss allowance methodology and the effects of extended economic weakness on the loan portfolio; ratio of allowance-to-total loans now 3.31%, compared to 2.25% for the second quarter of 2010 and 1.79% for the third quarter of 2009
- Reported non-performing assets-to-total assets of 1.82%, compared to 1.45% in the second quarter of 2010 and 0.27% in the third quarter of 2009
“The successful completion of our stock offering, expansion of our management team and reconstitution of our board of directors have collectively positioned us well to take advantage of anticipated consolidation opportunities in the Carolinas and Virginia,” said Jim Cherry, Chief Executive Officer. “Since closing the offering, we have focused on ensuring Park Sterling Bank is well prepared to execute our new strategy. This effort has included reconfirming that effective risk practices are in place, loans are appropriately graded, and estimated credit risk in the loan portfolio is prudently addressed. It has also included ensuring that we have an effective approach and the necessary resources in place to execute due diligence on potential partner banks.” Cherry said, “We have also actively engaged in executing our new strategy. This effort has included continued in-depth evaluation of potential merger partners and, importantly, direct and indirect dialogue with multiple possible partners spanning each of our three target market states. It has also included ongoing recruiting efforts around key leadership positions both to accelerate our organic growth and to effectively manage a larger banking platform.”
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