Park Sterling in Charlotte, N.C. reported lower quarterly earnings as integration costs for a recent acquisition overshadowed solid loan growth.
The $2.3 billion asset company's net income fell 36% from the second quarter and 42% from a year earlier, to $2.5 million, or 6 cents a share. Comparisons to the third quarter of 2013 were influenced by Park Sterling's May acquisition of Provident Community Bancshares in Rock Hill, S.C.
Net interest income rose 9% from the second quarter, to $20.7 million. Total loans increased 5% from June 30, to $1.6 billion. The net interest margin expanded by 3 basis points over that period, to 3.98%.
Noninterest expenses rose 13% from a quarter earlier, to $20.6 million. The company reported $2.2 million in merger-related expenses in the third quarter, accounting for 90% of the linked-quarter increase.
Noninterest income fell 22% from the second quarter, to $3.1 million, reflecting a $1.3 million increase in amortization expenses tied to past acquisitions of failed banks.
Park Sterling recorded a $484,000 credit to its loan-loss provision.
Park Sterling has 53 branches in the North Carolina, South Carolina, Georgia and Virginia.