Park Sterling reports lower third-quarter profit

The parent company of Park Sterling Bank reported lower profit in the third quarter compared with the same period last year, as expenses associated with its acquisition of a Rock Hill lender weighed on earnings.

Charlotte-based Park Sterling Corp. said Thursday it posted profit of $2.5 million, or 6 cents per share, in the quarter. That was down from profit of $4.2 million, or 10 cents per share, a year ago.

The regional lender blamed the declined primarily on a $2.1 million increase in expenses tied to merging with Provident Community Bancshares, which Park Sterling bought in May.

That acquisition also helped boost Park Sterling's third-quarter revenue to a record $23.9 million in the quarter. The company said the record revenue was also driven in part by "organic" loan growth of $78.5 million, which was also a record.

When banks refer to "organic" loan growth, they mean new loans that they originated. That's different from, say, loan growth from the acquisition of another lender.

On Thursday, Park Sterling said it has opened a second branch in the Richmond, Va., area. That branch opened this month, it said.

Park Sterling entered the Richmond market earlier this year when it opened a loan-production office that it later converted into a full-service branch.