Exhibit 99.1

Park Sterling Corporation Announces
Second Quarter 2011 Results

Charlotte, NC — July 28, 2011 — Park Sterling Corporation (NASDAQ: PSTB), the holding company for Park Sterling Bank, today released unaudited results of operations and other financial information for the second quarter of 2011. Highlights for the quarter include:

Second Quarter Highlights:

•

Nonperforming loans decreased $7.7 million, or 22%, compared to the first quarter of 2011 to $27.6 million, or 7.25% of total loans

•

Nonperforming assets decreased $4.2 million, or 11%, compared to the first quarter of 2011 to $32.6 million, or 5.34% of total assets

•

Provision for loan losses decreased $1.2 million, or 27%, to $3.2 million compared to the first quarter of 2011

•

Net charge-offs decreased $1.4 million, or 27%, to $3.7 million, or 3.93% of average loans (annualized), compared to $5.1 million, or 5.27% of average loans (annualized), in the first quarter of 2011

•

Net interest income decreased slightly to $3.8 million compared to $4.0 million in the first quarter of 2011

•

Capital levels remain strong as tangible common equity as a percentage of tangible assets increased slightly to 28.43% from 27.81% in the first quarter of 2011

•

Net loss of $3.1 million, or $0.11 per diluted share, compared to a net loss of $2.9 million, or $0.10 per diluted share, in the first quarter of 2011 and net income of $173,000, or $0.03 per diluted share, in the second quarter of 2010

•

Excluding pre-tax, merger-related expenses of $632,000 in the second quarter of 2011 and $75,000 in the first quarter of 2011, the net loss narrowed to $2.7 million, or approximately $0.10 per diluted share, compared to $2.8 million, or approximately $0.10 per diluted share in the first quarter of 2011

Business Highlights:

•

Opened loan production offices in the Upstate region of South Carolina and in the Research Triangle region of North Carolina, adding in-market, veteran bankers to develop opportunities in these attractive growth markets

•

Received regulatory approval and opened de novo branch in Charleston, South Carolina, adding in-market, veteran bankers and customer service personnel

•

Established newly formed Asset Based Lending (ABL) business through hiring of experienced team, which represents an attractive growth and business line diversification opportunity

•

Continued to prepare for consummation and integration of the Community Capital Corporation (“Community Capital”) merger, which is expected to close in the third quarter

“The second quarter was marked by significant progress in advancing our growth strategy and working through our problem assets,” said Jim Cherry, Chief Executive Officer. “Park Sterling’s organic growth initiatives accelerated during the second quarter with the addition of veteran, in-market bankers in the dynamic markets of Charleston, South Carolina, Upstate region of South Carolina and Research Triangle region of North Carolina. Each of these markets is home to a multitude of operating companies and commercially oriented businesses. In addition, our newly formed ABL business, which will operate out of Greenville, South Carolina, will help drive growth and further diversify our loan portfolio across the franchise. As a result of these actions and the strong business development pipeline we are already seeing, we anticipate accelerated loan growth during the second half of 2011.

Park Sterling’s credit quality continues to improve as non-performing assets, the provision for loan losses, and net charge-offs decreased on a sequential basis, as expected. While some unevenness in the level of nonperforming loans is possible during the second half of this year, we are optimistic that we are on track for continued improvement in our asset quality as well as a reduction in credit-related expenses during the remainder of 2011.

We have made significant investments in our franchise during the first half of 2011, and expect the pace of those investments to slow during the second half of 2011. Accordingly, we believe that our normalized operating expenses, excluding merger-related items, will plateau near current levels over the next two quarters. We also anticipate lower net charge-offs and provision for loan losses over the second half of the year compared to the first six months.

Our near-term focus on the mergers and acquisitions front continues to be the successful consummation and integration of our partnership with Community Capital. Nevertheless, we believe there are many prospects across Virginia and the Carolinas, driven in part by the continuing uncertain regulatory and economic environment, and we remain active in seeking attractive opportunities for Park Sterling.”

Second Quarter 2011 Financial Highlights

Asset Quality

Nonperforming loans, which included $1.6 million in loans under contract for sale and $2.0 million in successfully remediated troubled debt restructurings (TDRs), decreased $7.7 million, or 22%, to $27.6 million, or 7.25% of total loans, compared to $35.2 million, or 9.07% of total loans, as of March 31, 2011. Nonperforming assets decreased $4.2 million, or 11%, to $32.6 million, or 5.34% of total assets, down from $36.8 million, or 5.85% of total assets, as of March 31, 2011.

The provision for loan losses decreased $1.2 million, or 27%, to $3.2 million, compared to the first quarter of 2011. Net charge-offs decreased $1.4 million, or 27%, to $3.7 million, representing 3.93% of average loans on an annualized basis, compared to $5.1 million, or 5.27% of average loans (annualized) in the prior quarter. The allowance for loan losses was $11.3 million, or 2.96% of total loans at June 30, 2011, a decrease of $491,000 from $11.8 million, or 3.03% of total loans, at March 31, 2011. This decrease in the allowance resulted from positive credit quality trends in the loan portfolio. The allowance represented 40.91% of nonperforming loans (including TDRs) at June 30, 2011 up from 33.41% at March 31, 2011.

Net Interest Income and Net Interest Margin

Net interest income decreased slightly to $3.8 million compared to $4.0 million in the first quarter of 2011, and the net interest margin decreased 7 basis points during the same time period to 2.60%. The decrease in the net interest margin related in part to a 3% decrease in average loan balances, resulting from the resolution of problem credits and a managed decrease in construction and development exposure to improve the loan mix. It was also impacted by a $170 thousand decrease in swap income from a matured portfolio hedge and a negative $88 thousand mark from a forward-starting swap (the then prevailing mark on which will reverse out when the associated loan closes and is marked at fair value in the fourth quarter of 2011). These negative factors were partially offset by a 16 basis point improvement in funding costs as a result of improved deposit mix and pricing.

Compared to the second quarter of 2010, net interest income increased slightly to $3.8 million from $3.7 million, and the net interest margin decreased 65 basis points during the same time period. Partially offsetting the decrease in the net interest margin was the $89.3 million increase in average taxable investment securities, resulting from the utilization of net proceeds of $140.2 million from the common stock offering completed during the third quarter of 2010.

Noninterest Income

Noninterest income, which remains modest, decreased $28,000 compared to the first quarter of 2011 and increased $20,000 compared to the second quarter of 2010. The sequential decline in noninterest income primarily related to the absence of gains on the sale of automobiles recorded in the first quarter of 2011. The year over year increase in noninterest income was primarily due to higher NSF fees and deposit service charges.

Noninterest Expense

Noninterest expense increased $1.2 million, or 29%, to $5.5 million compared to $4.2 million in the first quarter of 2011. This increase in noninterest expense included $557,000 in incremental merger related expenses and $68,000 in incremental costs associated with becoming a new public company, both of which related primarily to legal and professional fees. The increase also included $334,000 in incremental costs associated with the new de novo offices and ABL capabilities, related primarily to personnel and occupancy costs. Positive items included a $96,000 decrease in FDIC insurance premiums and a $142,000 decrease in OREO-related expenses.

Compared to the second quarter of 2010, expenses increased $3.0 million, primarily due to increased salaries and employee benefits related to the management expansion that occurred during the second half of 2010 and the addition of new employees during the first half of 2011. Also impacting the increase in noninterest expense were higher costs related to being a newly public company, merger related expenses resulting from the Community Capital acquisition, and an increase in OREO-related expenses due to the addition of nonperforming assets resulting from the deterioration in our loan portfolio that began during the second half of 2010.

Balance Sheet and Capital

Total assets decreased $17.7 million, or 3%, compared to the first quarter of 2011, primarily due to a $7.8 million reduction in loan balances. Compared to the second quarter of 2010, total assets grew $122.3 million, or 25%, resulting from an increase in the securities portfolio as proceeds from the initial public offering were invested during the third and fourth quarters of 2010.

Compared to the first quarter of 2011, total loans decreased $7.8 million, or 2%, to $380.4 million, primarily due to a 2% reduction in income-producing commercial real estate loans and a 15% decrease in construction and development loans (both commercial and residential). These declines were partially offset by a 6% increase in combined commercial and industrial and owner-occupied loans and a 5% increase in home equity lines of credit. Compared to the second quarter of 2010, total loans decreased $19.0 million, or 5%, resulting from a 43% decrease in construction and development loans. Partially offsetting this decrease was a 7% increase in income producing commercial real estate loans, a 9% increase in combined commercial and industrial and owner-occupied loans, a 4% increase in residential mortgages and a 3% increase in home equity lines of credit. Total exposure to construction and development loans decreased to 19% of gross loans, down from 21% in the first quarter of 2011 and 31% in the second quarter of 2010.

Total deposits decreased $17.6 million, or 4%, compared to the first quarter of 2011. This decrease in deposits was primarily due to a managed 10% decrease in time deposits, as management both allowed higher-priced special rates to roll-off and reduced brokered deposits. The decrease was offset by a 3% increase in money market, NOW and savings deposits, and a 14% increase in demand deposits. Compared to the second quarter of 2010, total deposits decreased $7.9 million, or 2%, resulting from a 22% decrease in time deposits, offset by a 77% increase in money market, NOW and savings deposits, and a 54% increase in demand deposits. Core deposits, which excludes brokered deposits, as a percentage of total deposits were 76%, compared to 78% in the first quarter of 2011 and 68% in the second quarter of 2010.

Shareholders’ equity decreased $1.2 million to $173.6 million compared to $174.8 million at March 31, 2011, primarily resulting from the second quarter 2011 net loss of $3.1 million. Shareholders’ equity increased $126.9 million compared to the second quarter of 2010 as a result of the August 2010 common stock offering. Tangible common equity as a percentage of tangible assets was 28.43%, a slight increase from 27.81% at March 31, 2011, and an increase compared to 9.56% at June 30, 2010. Tier 1 leverage ratio was 27.07%, a slight decrease from 28.36% at March 31, 2011.

During the first quarter, and as contemplated in the equity offering, 568,260 shares of restricted stock were issued, but will not vest until the Company’s share price achieves certain performance thresholds above the equity offering price (these restricted stock awards vest one-third each at $8.125, $9.10 and $10.40 per share, respectively). Accordingly, these additional shares have been excluded from earnings and tangible book value per share calculations.

*     *     *     *     *     *     *

Conference Call

A conference call will be held at 8:30 a.m., ET this morning (July 28, 2011). The conference call can be accessed by dialing (877) 317-6789 and requesting the Park Sterling Corporation earnings call. Listeners should dial in 10 minutes prior to the start of the call. The live webcast and presentation slides will be available on www.parksterlingbank.com under Investor Relations, “Investor Presentations.”

A replay of the webcast will be available on www.parksterlingbank.com under Investor Relations, “Investor Presentations” shortly following the call. A replay of the conference call can be accessed one hour after the call through May 13, 2011, by dialing (877) 344-7529, conference number 450459.

About Park Sterling Corporation

Park Sterling Corporation is the holding company for Park Sterling Bank, headquartered in Charlotte, North Carolina. The Bank’s primary focus is to provide banking services to small and mid-sized businesses, owner-occupied and income producing real estate owners, professionals and consumers doing business or residing within its target markets. Park Sterling Bank is committed to building a banking franchise across the Carolinas and Virginia that is noted for sound risk management, superior customer service and exceptional client relationships. For more information, visit www.parksterlingbank.com. Park Sterling’s shares are traded on NASDAQ under the symbol PSTB.

Non-GAAP Measures

Tangible assets, tangible common equity, tangible book value and related ratios, as used throughout this release, are non-GAAP financial measures. For additional information, see “Reconciliation of Non-GAAP Measures” in the accompanying tables.

Cautionary Statement Regarding Forward Looking Statements

This news release contains, and Park Sterling and its management may make, certain statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts and often use words such as “may,” “plan,” “contemplate,” “anticipate,” “believe,” “intend,” “continue,” “expect,” “project,” “predict,” “estimate,” “could,” “should,” “would,” “will,” “goal,” “target” and similar expressions. These forward-looking statements express management’s current expectations, plans or forecasts of future events, results and condition, including expectations regarding the proposed merger with Community Capital Corporation (“Community Capital”), the general business strategy of engaging in bank mergers, organic growth and anticipated asset size, anticipated loan growth, refinement of the loan loss allowance methodology, recruiting of key leadership positions, decreases in construction and development loans and other changes in loan mix, changes in deposit mix, capital and liquidity levels, emerging regulatory expectations and measures, net interest income, credit trends and conditions, including loan losses, allowance, charge-offs, delinquency trends and nonperforming loan and asset levels, residential sales activity and other similar matters. These statements are not guarantees of future results or performance and by their nature involve certain risks and uncertainties that are based on management’s beliefs and assumptions and on the information available to management at the time that these disclosures were prepared. Actual outcomes and results may differ materially from those expressed in, or implied by, any of these forward-looking statements.

You should not place undue reliance on any forward-looking statement and should consider all of the following uncertainties and risks, as well as those more fully discussed in any of Park Sterling’s filings with the SEC: failure of Community Capital’s shareholders to approve the merger; failure to realize synergies and other financial benefits from the proposed merger within the expected time frame; increases in expected costs or difficulties related to integration of the Community Capital merger; inability to identify and successfully negotiate and complete additional combinations with potential merger partners or to successfully integrate such businesses into Park Sterling, including the company’s ability to realize the benefits and cost savings from and limit any unexpected liabilities acquired as a result of any such business combination; the effects of negative economic conditions, including stress in the commercial real estate markets or delay or failure of recovery in the residential real estate markets; changes in consumer and investor confidence and the related impact on financial markets and institutions; changes in interest rates; failure of assumptions underlying the establishment of our allowance; deterioration in the credit quality of our loan portfolios or in the value of the collateral securing those loans; deterioration in the value of securities held in our investment securities portfolio; legal and regulatory developments; increased competition from both banks and nonbanks; changes in accounting standards, rules and interpretations, inaccurate estimates or assumptions in accounting and the impact on Park Sterling’s financial statements; Park Sterling’s ability to attract new employees; and management’s ability to effectively manage credit risk, market risk, operational risk, legal risk, and regulatory and compliance risk.

Forward-looking statements speak only as of the date they are made, and Park Sterling undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made.

Additional Information About The Merger And Where You Can Find It

In connection with the proposed merger between Park Sterling and Community Capital Corporation (“Community Capital”), Park Sterling has filed with the Securities and Exchange Commission (the “SEC”) a Registration Statement on Form S-4 that includes a preliminary Proxy Statement of Community Capital that also constitutes a Prospectus of Park Sterling, as well as other relevant documents concerning the proposed transaction. Once the Registration Statement is declared effective by the SEC, Community Capital will mail a definitive Proxy Statement/Prospectus to its shareholders. Shareholders are strongly urged to read the Registration Statement including the preliminary Proxy Statement/Prospectus regarding the proposed merger filed with the SEC, and other relevant documents that will be filed with the SEC, as well as any amendments or supplements to those documents (including the definitive Proxy Statement/Prospectus) as they become available, because they will contain important information regarding the proposed merger.

A free copy of the Proxy Statement/Prospectus, as well as other filings containing information about Park Sterling and Community Capital, may be obtained after their filing at the SEC’s Internet site (http://www.sec.gov). In addition, free copies of documents filed with the SEC may be obtained on the respective websites of Park Sterling and Community Capital at www.parksterlingbank.com and www.capitalbanksc.com.

This communication does not constitute an offer to buy, or a solicitation to sell, shares of any security or the solicitation of any proxies from the shareholders of Park Sterling or Community Capital.

Participants in the Solicitation

Park Sterling and Community Capital and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from Community Capital’s shareholders in connection with the proposed merger. Information about the directors and executive officers of Park Sterling and Community Capital and information about other persons who may be deemed participants in this solicitation will be included in the Proxy Statement/Prospectus. Information about Park Sterling’s executive officers and directors can be found in Park Sterling’s definitive proxy statement in connection with its 2011 Annual Meeting of Shareholders filed with the SEC on April 12, 2011. Information about Community Capital’s executive officers and directors can be found in Community Capital’s Amendment No.1 to its Annual Report on Form 10-K/A filed with the SEC on April 26, 2011.

###

For additional information contact:

David Gaines
Chief Financial Officer
(704) 716-2134
dgaines@parksterlingbank.com

PARK STERLING CORPORATION
CONDENSED INCOME STATEMENT
THREE MONTH RESULTS
($ in thousands, except per share amounts)

		June 30,				March 31,				December 31,				September 30,				June 30,
		2011				2011				2010 *				2010				2010
		(Unaudited)				(Unaudited)								(Unaudited)				(Unaudited)
Interest income
Loans, including fees		$	4,450			$	4,758			$	4,984			$	4,963			$	5,169
Federal funds sold			33				30				46				42				9
Taxable investment securities			684				681				587				370				285
Tax-exempt investment securities			181				171				160				161				160
Interest on deposits at banks			11				14				16				23				15
Total interest income			5,359				5,654				5,793				5,559				5,638
Interest expense
Money market, NOW and savings deposits			176				141				132				104				89
Time deposits			1,080				1,226				1,435				1,490				1,460
Short-term borrowings			1				—				1				1				3
Long-term borrowings			141				141				140				144				141
Subordinated debt			189				190				188				190				189
Total interest expense			1,587				1,698				1,896				1,929				1,882
Net interest income			3,772				3,956				3,897				3,630				3,756
Provision for loan losses			3,245				4,462				8,237				6,143				1,094
Net interest income (loss) after provision			527				(506	)			(4,340	)			(2,513	)			2,662
Total noninterest income			44				72				43				26				24
Noninterest expenses
Salaries and employee benefits			2,975				2,507				2,114				1,777				1,299
Occupancy and equipment			301				256				250				236				224
Advertising and promotion			87				38				50				84				96
Legal and professional fees			1,205				307				208				78				83
Deposit charges and FDIC insurance			196				287				185				184				182
Data processing and outside service fees			128				123				109				109				100
Directors fees			45				41				182				164				47
Net cost of operation of other real estate			93				235				16				120				239
Other noninterest expense			444				440				434				238				207
Total noninterest expenses			5,474				4,234				3,548				2,990				2,477
Income (loss) before income taxes			(4,903	)			(4,668	)			(7,845	)			(5,477	)			209
Income tax expense (benefit)			(1,789	)			(1,781	)			(3,324	)			(1,809	)			36
Net income (loss)		$	(3,114	)		$	(2,887	)		$	(4,521	)		$	(3,668	)		$	173
Earnings (loss) per share, fully diluted		$	(0.11	)		$	(0.10	)		$	(0.16	)		$	(0.23	)		$	0.03
Weighted average diluted shares			28,051,098				28,051,098				28,051,098				15,998,924				4,951,098

PARK STERLING CORPORATION
CONDENSED INCOME STATEMENT
SIX MONTH RESULTS
($ in thousands, expect per share amounts)

		June 30,				June 30,
		2011				2010
		(Unaudited)				(Unaudited)
Interest income
Loans, including fees		$	9,208			$	10,312
Federal funds sold			63				18
Taxable investment securities			1,365				611
Tax-exempt investment securities			352				320
Interest on deposits at banks			25				28
Total interest income			11,013				11,289
Interest expense
Money market, NOW and savings deposits			317				172
Time deposits			2,306				2,944
Short-term borrowings			1				8
FHLB advances			282				279
Subordinated debt			379				379
Total interest expense			3,285				3,782
Net interest income			7,728				7,507
Provision for loan losses			7,707				2,625
Net interest income (loss) after provision			21				4,882
Total noninterest income			116				62
Noninterest expenses
Salaries and employee benefits			5,482				2,551
Occupancy and equipment			557				430
Advertising and promotion			125				153
Legal and professional fees			1,512				159
Deposit charges and FDIC insurance			483				358
Data processing and outside service fees			251				193
Directors fees			86				47
Net cost of operation of other real estate			328				275
Other noninterest expense			884				353
Total noninterest expenses			9,708				4,519
Income (loss) before income taxes			(9,571	)			425
Income tax expense (benefit)			(3,570	)			95
Net income (loss)		$	(6,001	)		$	330
Earnings (loss) per share, fully diluted		$	(0.21	)		$	0.07
Weighted average diluted shares			28,051,098				4,951,098

PARK STERLING CORPORATION
CONDENSED BALANCE SHEETS
($ in thousands)

		June 30,				March 31,				December 31,				September 30,				June 30,
		2011				2011				2010 *				2010				2010
		(Unaudited)				(Unaudited)								(Unaudited)				(Unaudited)
ASSETS
Cash and due from banks		$	14,349			$	54,192			$	2,433			$	11,591			$	7,785
Interest earning balances at banks			8,571				3,796				5,040				5,859				2,290
Investment securities available-for-sale			146,734				112,273				140,590				115,357				40,289
Federal funds sold			44,060				57,525				57,905				96,560				30,860
Loans held for sale			1,600				—				—				—				—
Loans			380,365				388,187				399,829				397,658				399,376
Allowance for loan losses			(11,277	)			(11,768	)			(12,424	)			(13,150	)			(8,974	)
Net loans			369,088				376,419				387,405				384,508				390,402
Other real estate owned			3,470				1,565				1,246				1,441				534
Other assets			22,796				22,646				21,489				17,314				16,201
Total assets		$	610,668			$	628,416			$	616,108			$	632,630			$	488,361
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Demand noninterest-bearing		$	42,156			$	37,098			$	36,333			$	30,468			$	27,316
Money market, NOW and savings			110,874				107,186				71,666				72,639				62,568
Time deposits			250,876				277,228				299,821				314,042				321,899
Total deposits			403,906				421,512				407,820				417,149				411,783
Short-term borrowings			1,661				1,213				874				1,100				1,762
FHLB advances			20,000				20,000				20,000				20,000				20,000
Subordinated debt			6,895				6,895				6,895				6,895				6,895
Accrued expenses and other liabilities			4,622				4,026				3,418				3,639				1,231
Total liabilities			437,084				453,646				439,007				448,783				441,671
Stockholders’ equity:
Common stock			28,619				28,619				130,438				130,438				23,023
Additional paid-in capital			159,890				159,367				57,102				56,778				23,687
Accumulated deficit			(15,502	)			(12,388	)			(9,501	)			(4,981	)			(1,313	)
Accumulated other comprehensive income			577				(828	)			(938	)			1,612				1,293
Total stockholders’ equity			173,584				174,770				177,101				183,847				46,690
Total liabilities and stockholders’ equity		$	610,668			$	628,416			$	616,108			$	632,630			$	488,361
Common shares issued and outstanding			28,619,358				28,619,358				28,051,098				28,051,098				4,951,098

PARK STERLING CORPORATION
SUMMARY OF LOAN PORTFOLIO
($ in thousands)

		June 30,				March 31,				December 31,				September 30,				June 30,
		2011				2011				2010 *				2010				2010
		(Unaudited)				(Unaudited)								(Unaudited)				(Unaudited)
Commercial:
Commercial and industrial		$	45,056			$	48,107			$	48,401			$	47,166			$	45,461
Commercial real estate — owner-occupied			61,878				52,764				55,089				51,779				52,347
Commercial real estate — investor income producing			111,349				113,612				110,407				101,359				103,766
Acquisition, construction and development			64,662				75,977				87,846				100,522				106,513
Other commercial			6,840				5,232				3,225				2,866				585
Total commercial loans			289,785				295,692				304,968				303,692				308,672
Consumer:
Residential mortgage			21,767				25,034				21,716				20,920				20,910
Home equity lines of credit			56,481				53,725				56,968				58,115				54,982
Residential construction			6,048				7,018				9,051				8,616				8,562
Other loans to individuals			6,494				6,811				7,245				6,413				6,350
Total consumer loans			90,790				92,588				94,980				94,064				90,804
Total loans			380,575				388,280				399,948				397,756				399,476
Deferred fees			(210	)			(93	)			(119	)			(98	)			(100	)
Total loans, net of deferred fees		$	380,365			$	388,187			$	399,829			$	397,658			$	399,376

PARK STERLING CORPORATION
ALLOWANCE FOR LOAN LOSSES
THREE MONTH RESULTS
($ in thousands)

		June 30,				March 31,				December 31,				September 30,				June 30,
		2011				2011				2010 *				2010				2010
		(Unaudited)				(Unaudited)								(Unaudited)				(Unaudited)
Beginning of period allowance		$	11,768			$	12,424			$	13,150			$	8,974			$	8,380
Provision for loan losses			3,245				4,462				8,237				6,143				1,094
Loans charged-off			4,096				5,581				9,000				1,986				502
Recoveries of loans charged-off			360				463				37				19				2
End of period allowance			11,277				11,768				12,424				13,150				8,974
Net loans charged-off		$	3,736			$	5,118			$	8,963			$	1,967			$	500
Annualized net charge-offs			3.93	%			5.27	%			8.97	%			1.98	%			0.50	%

PARK STERLING CORPORATION
AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS
THREE MONTHS

		June 30, 2011												June 30, 2010
		Average				Income/				Yield/				Average				Income/				Yield/
		Balance				Expense				Rate				Balance				Expense				Rate
Assets
Interest-earning assets:
Loans with fees (1)		$	385,893			$	4,450				4.63	%		$	400,076			$	5,169				5.18	%
Fed funds sold			56,611				33				0.23	%			16,813				9				0.21	%
Taxable investment securities			117,414				684				2.33	%			28,093				285				4.06	%
Tax-exempt investment securities			15,988				181				4.53	%			14,253				160				4.49	%
Other interest-earning assets			6,248				11				0.71	%			4,932				15				1.22	%
Total interest-earning assets			582,154				5,359				3.69	%			464,167				5,638				4.87	%
Allowance for loan losses			(11,684	)											(8,463	)
Cash and due from banks			29,415												8,014
Premises and equipment			4,705												4,621
Other assets			17,689												9,917
Total assets		$	622,279											$	478,256
Liabilities and stockholders’ equity
Interest-bearing liabilities:
Interest-bearing demand		$	11,968			$	4				0.13	%		$	11,113			$	2				0.07	%
Savings and money market			95,548				172				0.72	%			45,053				87				0.77	%
Time deposits — core			169,072				644				1.53	%			181,574				874				1.93	%
Time deposits — brokered			99,553				436				1.76	%			132,394				586				1.78	%
Total interest-bearing deposits			376,141				1,256				1.34	%			370,134				1,549				1.68	%
Federal Home Loan Bank advances			20,000				141				2.83	%			20,000				141				2.83	%
Other borrowings			8,376				190				9.10	%			12,166				192				6.33	%
Total borrowed funds			28,376				331				4.68	%			32,166				333				4.15	%
Total interest-bearing liabilities			404,517				1,587				1.57	%			402,300				1,882				1.88	%
Net interest rate spread							3,772				2.12	%							3,756				3.00	%
Noninterest-bearing demand deposits			39,711												28,939
Other liabilities			2,985												255
Stockholders’ equity			175,066												46,762
Total liabilities and equity		$	622,279											$	478,256
Net interest margin											2.60	%											3.25	%

PARK STERLING CORPORATION
SELECTED RATIOS
($ in thousands, except per share amounts)

		June 30,				March 31,				December 31,				September 30,				June 30,
		2011				2011				2010 *				2010				2010
		Unaudited				Unaudited								(Unaudited)				(Unaudited)
ASSET QUALITY
Nonaccrual loans		$	25,565			$	34,027			$	40,911			$	10,043			$	6,534
Troubled debt restructuring			2,002				1,198				1,198				3,314				2,271
Nonperforming loans			27,566				35,225				42,109				13,357				8,805
OREO			3,470				1,565				1,246				1,441				534
Loans held for sale			1,600				—				—				—				—
Nonperforming assets			32,637				36,790				43,356				14,797				9,339
Past due 30-59 days (and still accruing)			—				3,469				—				6,599				343
Past due 60-89 days (and still accruing)			—				—				—				660				1,778
Past due 90 days plus (and still accruing)			—				—				—				—				—
Nonperforming loans to total loans			7.25	%			9.07	%			10.53	%			3.36	%			2.20	%
Nonperforming assets to total assets			5.34	%			5.85	%			7.04	%			2.34	%			1.91	%
Allowance to total loans			2.96	%			3.03	%			3.11	%			3.31	%			2.25	%
Allowance to nonperforming loans			40.91	%			33.41	%			29.50	%			98.45	%			101.92	%
Allowance to nonperforming assets			34.55	%			31.99	%			28.66	%			88.87	%			96.09	%
CAPITAL
Book value per share		$	6.19			$	6.23			$	6.31			$	6.55			$	9.43
Tangible book value per share		$	6.19			$	6.23			$	6.31			$	6.55			$	9.43
Common shares outstanding			28,619,358				28,619,358				28,051,098				28,051,098				4,951,098
Dilutive common shares outstanding			28,051,098				28,051,098				28,051,098				28,051,098				4,951,098
Tier 1 capital		$	166,762			$	170,956			$	173,395			$	182,234			$	44,262
Tier 2 capital			12,143				12,035				12,373				12,280				12,167
Total risk based capital			178,905				182,991				185,768				194,514				56,429
Tier 1 ratio			40.30	%			42.25	%			40.20	%			43.09	%			10.59	%
Total risk based capital ratio			43.23	%			45.23	%			43.07	%			45.99	%			13.50	%
Tier 1 leverage ratio			27.07	%			28.36	%			27.39	%			32.80	%			9.26	%
Tangible common equity to tangible assets			28.43	%			27.81	%			28.75	%			29.06	%			9.56	%
LIQUIDITY
Net loans to total deposits			91.38	%			89.30	%			94.99	%			92.18	%			94.81	%
Liquidity ratio			53.09	%			53.99	%			50.48	%			54.99	%			19.56	%
Equity to Total Assets			28.43	%			27.81	%			28.75	%			29.06	%			9.56	%
INCOME STATEMENT (THREE MONTH RESULTS; ANNUALIZED)
Return on Average Assets			-2.00	%			-1.93	%			-2.81	%			-2.64	%			0.14	%
Return on Average Equity			-7.12	%			-6.60	%			-9.75	%			-12.80	%			1.48	%
Net interest margin (tax equivalent)			2.60	%			2.76	%			2.52	%			2.74	%			3.25	%
INCOME STATEMENT (ANNUAL RESULTS)
Return on Average Assets			n/a				n/a				-1.46	%			n/a				n/a
Return on Average Equity			n/a				n/a				-8.00	%			n/a				n/a
Net interest margin (tax equivalent)			n/a				n/a				2.95	%			n/a				n/a

PARK STERLING CORPORATION
RECONCILIATION OF NON-GAAP MEASURES
($ in thousands)

		June				March				December				September 30,				June 30,
		2011				2011				2010 *				2010				2010
		(Unaudited)				(Unaudited)								(Unaudited)				(Unaudited)
Tangible assets
Total assets		$	610,668			$	628,416			$	616,108			$	632,630			$	488,361
Less: intangible assets			—				—				—				—				—
Tangible assets		$	610,668			$	628,416			$	616,108			$	632,630			$	488,361
Tangible common equity
Total common equity		$	173,584			$	174,770			$	177,101			$	183,847			$	46,690
Less: intangible assets			—				—				—				—				—
Tangible common equity		$	173,584			$	174,770			$	177,101			$	183,847			$	46,690
Tangible book value per share
Issued and outstanding shares			28,619,358				28,619,358				28,051,098				28,051,098				4,951,098
Add: dilutive stock options			—				—				—				—				—
Deduct: nondilutive restricted awards			568,260				568,260				—				—				—
Period end dilutive shares			28,051,098				28,051,098				28,051,098				28,051,098				4,951,098
Tangible common equity		$	173,584			$	174,770			$	177,101			$	183,847			$	46,690
Divided by: period end outstanding shares			28,051,098				28,051,098				28,051,098				28,051,098				4,951,098
Tangible common book value per share		$	6.19			$	6.23			$	6.31			$	6.55			$	9.43