Exhibit 99.1

Park Sterling Corporation Announces
Third Quarter 2011 Results

Charlotte, NC — November 2, 2011 — Park Sterling Corporation (NASDAQ: PSTB), the holding company for Park Sterling Bank and CapitalBank, today released unaudited results of operations and other financial information for the third quarter of 2011. Highlights for the quarter, as shown below, do not include results from the November 1, 2011 acquisition of CapitalBank:

Third Quarter Highlights:

•

Nonperforming loans decreased $6.1 million, or 22%, compared to the second quarter of 2011 to $21.4 million, or 5.84% of total loans

•

Nonperforming assets decreased $3.9 million, or 12%, compared to the second quarter of 2011 to $28.7 million, or 4.93% of total assets

•

Provision for loan losses decreased $2.7 million, or 82%, to $568,000 compared to the second quarter of 2011

•

Net charge-offs decreased $1.7 million, or 46%, to $2.0 million, or 2.19% of average loans (annualized), compared to $3.7 million, or 3.87% of average loans (annualized), in the second quarter of 2011

•

Net interest income increased slightly to $3.9 million compared to $3.8 million in the second quarter of 2011

•

Net loss of $1.4 million, or $0.05 per diluted share, compared to a net loss of $3.1 million, or $0.11 per diluted share, in the second quarter of 2011 and a net loss of $3.7 million, or $0.23 per diluted share, in the third quarter of 2010

•

Excluding pre-tax, merger-related expenses of $496,000 in the third quarter of 2011 and $632,000 in the second quarter of 2011, the net loss narrowed to $1.1 million, or approximately $0.04 per diluted share, compared to $2.7 million, or approximately $0.10 per diluted share in the second quarter of 2011

•

Capital levels remain strong as tangible common equity as a percentage of tangible assets increased to 29.98% from 28.43% in the second quarter of 2011

Business Highlights:

•

Consummated merger with Community Capital Corporation (“Community Capital”) on November 1, 2011

•

Received regulatory approval for de novo branches in Raleigh, North Carolina and Greenville, South Carolina, with conversion from loan production office to branch offices expected during the fourth quarter of 2011

“Park Sterling’s third quarter was marked by significant progress in reducing problem assets and their attendant drag on earnings,” said Jim Cherry, Chief Executive Officer. “As expected, during the quarter, we began to realize the benefits of our organic growth initiatives with attractive new loan production reported in each of our markets. Combined with our ongoing progress in reducing construction and development exposures, this new loan production contributed to achieving a more balanced loan mix. In addition, Park Sterling’s credit quality continued to improve as nonperforming assets, provision expense, and net charge-offs each decreased, as anticipated.

During the quarter, significant time was devoted to ensuring the successful consummation of our merger with Community Capital. With that merger now complete, we are laser focused on ensuring that we provide customers and communities across our combined footprint with superior products and services. We expect, subject to regulatory approval, to merge our two operating banks, CapitalBank and Park Sterling Bank, into a single charter by year-end, which will allow us to more efficiently and effectively deliver an exceptional customer experience across the new Park Sterling franchise.

On the mergers and acquisitions front, we believe there are a growing number of prospects across Virginia and the Carolinas that will be attracted to a partnership with Park Sterling. They are driven in part by the continuing uncertain regulatory and economic environment, and we remain active in seeking attractive partnership opportunities for Park Sterling.”

Third Quarter 2011 Financial Highlights

Asset Quality

Asset quality continued to improve during the third quarter of 2011. Nonperforming loans, which included $2.0 million in performing troubled debt restructurings (TDRs), decreased $6.1 million, or 22%, to $21.4 million, or 5.84% of total loans, compared to $27.6 million, or 7.25% of total loans, as of June 30, 2011. Nonperforming assets, which included $1.6 million in nonperforming loans held for sale, decreased $3.9 million, or 12%, to $28.7 million, or 4.93% of total assets, down from $32.6 million, or 5.34% of total assets, as of June 30, 2011.

The provision for loan losses decreased $2.7 million, or 82%, to $568,000, compared to the second quarter of 2011. Net charge-offs decreased $1.7 million, or 46%, to $2.0 million, representing 2.19% of average loans on an annualized basis, compared to $3.7 million, or 3.87% of average loans (annualized) in the prior quarter. The allowance for loan losses was $9.8 million, or 2.68% of total loans at September 30, 2011, a decrease of $1.4 million from $11.3 million, or 2.96% of total loans, at June 30, 2011. This decrease in the allowance resulted both from positive trends in credit quality in the loan portfolio and from the recognition of losses on previously identified impaired loans and a related reduction in specific reserves. The allowance represented 45.84% of nonperforming loans (including TDRs) at September 30, 2011 up from 40.91% at June 30, 2011.

Compared to the third quarter of 2010, nonperforming loans increased 61% from $13.4 million, or 3.36% of total loans. Nonperforming assets increased 94% from $14.8 million, or 2.34% of total assets. The provision for loan losses decreased 91% from $6.1 million. Net charge-offs increased 2% from $2.0 million, or 1.97% of average loans (annualized).

Net Interest Income and Net Interest Margin

Net interest income increased slightly to $3.9 million compared to $3.8 million in the second quarter of 2011, and the net interest margin increased 9 basis points during the same time period to 2.69%. The increase in the net interest margin related primarily to a $230,000 decrease in interest expense during the third quarter of 2011, due in large part to improved deposit mix and pricing. Average earning assets decreased $13.4 million, or 2%, compared to the second quarter of 2011, due to an $18.8 million, or 5%, decrease in average loan balances, resulting in part from the resolution of problem credits and a managed decrease in construction and development (C&D) exposure to improve the loan mix.

Compared to the third quarter of 2010, net interest income increased 6% to $3.9 million from $3.6 million, and the net interest margin increased 2 basis points during the same time period. Average interest-earning assets increased $29.0 million, or 5%, 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 increased $67,000 compared to the second quarter of 2011 and increased $85,000 compared to the third quarter of 2010. The increase in noninterest income in both periods included $52,000 in incremental other income associated with a new $8 million investment in bank-owned life insurance purchased during the third quarter of 2011. The increase in noninterest income from the third quarter of 2010 was also due in part to higher NSF fees and deposit service charges.

Noninterest Expense

Noninterest expense decreased $258,000 to $5.2 million compared to $5.5 million in the second quarter of 2011. This decrease in noninterest expense primarily reflected $484,000 in lower legal and professional fees, partially offset by an $81,000 increase in other expenses, $76,000 increase in salaries and employee benefits, and $71,000 increase loan and collection expenses. Noninterest expense included $496,000 of merger-related expense during the third quarter of 2011 compared to $632,000 during the second quarter of 2011, primarily in legal and professional fees.

Compared to the third quarter of 2010, noninterest expense increased $2.2 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 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 and loan and collection expenses due to the addition of nonperforming assets resulting from a deterioration in the loan portfolio during the second half of 2010.

Balance Sheet and Capital

Total assets decreased $28.3 million, or 5%, compared to the second quarter of 2011. Loans decreased $13.0 million, or 3%, in the third quarter of 2011 resulting in part from the resolution of problem credits and a managed decrease in C&D exposure to improve the loan mix. Cash, interest earning balances, Federal funds sold and investment securities together decreased $26.5 million, or 12%, compared to the second quarter of 2011. The decrease resulted in part from an $8 million investment in bank-owned life insurance that is included in other assets. The decrease also reflected management’s decision to reduce certain lower yielding interest-earning assets by allowing higher priced time deposits to mature without renewal.

Loan mix continued to improve during the third quarter of 2011. Construction and development related exposures decreased 20% compared to the second quarter of 2011. C&D loans represented 15.3% of total loans at September 30, 2011, compared to 18.6% at June 30, 2011 and 27.4% at September 30, 2010. Commercial and industrial loans and owner-occupied commercial real estate loans together increased 5% compared to the second quarter of 2011. C&I and owner-occupied loans represented 30.4% of total loans at September 30, 2011, compared to 28.1% at June 30, 2011 and 24.9% at September 30, 2011. Non-owner-occupied commercial real estate loans and 1-4 family loans remained fairly steady compared to the second quarter of 2011 at 29.5% and 5.4% of total loans, respectively. Home equity lines of credit increased slightly from 14.8% to 15.4% of total loans on a linked-quarter basis.

Total deposits decreased $28.9 million, or 7%, compared to the second quarter of 2011. This decrease in deposits was primarily due to a managed 15% decrease in time deposits, as management both allowed higher-priced special rates to mature without renewal and reduced brokered deposits. The decrease was offset by an 8% increase in money market, NOW and savings deposits, and a 2% increase in demand deposits. Compared to the third quarter of 2010, total deposits decreased $42.4 million, or 10%, resulting from a 32% decrease in time deposits, offset by a 65% increase in money market, NOW and savings deposits, and a 41% increase in demand deposits. Core deposits, which excludes brokered deposits, as a percentage of total deposits were 77%, compared to 76% in the first quarter of 2011 and 72% in the third quarter of 2010.

Shareholders’ equity increased $1.0 million to $174.6 million compared to $173.6 million at June 30, 2011, as an increase in accumulated other comprehensive income offset the third quarter 2011 net loss of $1.4 million. Shareholders’ equity decreased $9.2 million compared to the third quarter of 2010 as a result of $11.9 million in accumulated net losses. Tangible common equity as a percentage of tangible assets was 29.98%, an increase from 28.43% at June 30, 2011 and from 29.06% at September 30, 2010. Tier 1 leverage ratio was 27.13%, compared to 27.07% at June 30, 2011 and 32.80% at September 30, 2010.

During the first quarter of 2011, and as contemplated in the 2010 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 (November 2, 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 by dialing (877) 344-7529, conference number 10005537.

About Park Sterling Corporation

Park Sterling Corporation is the holding company for Park Sterling Bank, headquartered in Charlotte, North Carolina, and for CapitalBank, headquartered in Greenwood, South Carolina. Park Sterling’s primary focus is to provide financial 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 offers a full array of banking services, including a diverse wealth management group. Park Sterling 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, earnings (loss) excluding merger-related expenses and related ratios and EPS measures, as used throughout this release, are non-GAAP financial measures. Management uses tangible assets, tangible common equity and tangible book value and related ratios to evaluate the adequacy of shareholders’ equity and to facilitate comparisons with peers. Management uses earnings (loss) excluding merger-related expenses and related EPS measures to evaluate core earnings (loss). 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 financial and other estimates and expectations regarding the merger with Community Capital Corporation, the general business strategy of engaging in bank mergers, organic growth including branch openings and anticipated asset size, expansion of product capabilities, 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 to realize synergies and other financial benefits from the merger with Community Capital 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 or in the value of guarantor support for those loans, where applicable; deterioration in the value of securities held in our investment securities portfolio; failure of assumptions underlying the utilization of our deferred tax assets; 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.

###

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)

		September 30,				June 30,				March 31,								September 30,
		2011				2011				2011				December 31,				2010
		(Unaudited)				(Unaudited)				(Unaudited)				2010 *				(Unaudited)
Interest income
Loans, including fees		$	4,283			$	4,450			$	4,758			$	4,984			$	4,963
Federal funds sold			22				33				30				46				42
Taxable investment securities			681				684				681				587				370
Tax-exempt investment securities			181				181				171				160				161
Interest on deposits at banks			44				11				14				16				23
Total interest income			5,211				5,359				5,654				5,793				5,559
Interest expense
Money market, NOW and savings deposits			158				176				141				132				104
Time deposits			868				1,080				1,226				1,435				1,490
Short-term borrowings			1				1				—				1				1
Long-term borrowings			140				141				141				140				144
Subordinated debt			190				189				190				188				190
Total interest expense			1,357				1,587				1,698				1,896				1,929
Net interest income			3,854				3,772				3,956				3,897				3,630
Provision for loan losses			568				3,245				4,462				8,237				6,143
Net interest income (loss) after provision			3,286				527				(506	)			(4,340	)			(2,513	)
Total noninterest income			111				44				72				43				26
Noninterest expenses
Salaries and employee benefits			3,051				2,975				2,507				2,114				1,777
Occupancy and equipment			369				301				256				250				236
Advertising and promotion			115				87				38				50				84
Legal and professional fees			721				1,205				307				208				78
Deposit charges and FDIC insurance			134				196				287				185				184
Data processing and outside service fees			142				128				123				109				109
Directors fees			45				45				41				182				164
Net cost of operation of other real estate			101				93				235				16				120
Loan and collection expense			180				109				86				63				82
Shareholder reporting expense			36				94				64				15				8
Other noninterest expense			322				241				290				356				148
Total noninterest expenses			5,216				5,474				4,234				3,548				2,990
Income (loss) before income taxes			(1,819	)			(4,903	)			(4,668	)			(7,845	)			(5,477	)
Income tax expense (benefit)			(443	)			(1,789	)			(1,781	)			(3,324	)			(1,809	)
Net income (loss)		$	(1,376	)		$	(3,114	)		$	(2,887	)		$	(4,521	)		$	(3,668	)
Earnings (loss) per share, fully diluted		$	(0.05	)		$	(0.11	)		$	(0.10	)		$	(0.16	)		$	(0.23	)
Weighted average diluted shares			28,051,098				28,051,098				28,051,098				28,051,098				15,998,924

*		Derived from audited financial statements.

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

		September 30,				September 30,
		2011				2010
		(Unaudited)				(Unaudited)
Interest income
Loans, including fees		$	13,491			$	15,275
Federal funds sold			85				60
Taxable investment securities			2,046				981
Tax-exempt investment securities			533				481
Interest on deposits at banks			69				51
Total interest income			16,224				16,848
Interest expense
Money market, NOW and savings deposits			475				276
Time deposits			3,174				4,434
Short-term borrowings			2				9
FHLB advances			422				423
Subordinated debt			569				569
Total interest expense			4,642				5,711
Net interest income			11,582				11,137
Provision for loan losses			8,275				8,768
Net interest income (loss) after provision			3,307				2,369
Total noninterest income			227				88
Noninterest expenses
Salaries and employee benefits			8,533				4,328
Occupancy and equipment			926				666
Advertising and promotion			240				237
Legal and professional fees			2,233				237
Deposit charges and FDIC insurance			617				543
Data processing and outside service fees			393				302
Directors fees			131				211
Net cost of operation of other real estate			429				395
Loan and collection expense			375				161
Shareholder reporting expense			194				24
Other noninterest expense			853				406
Total noninterest expenses			14,924				7,510
Income (loss) before income taxes			(11,390	)			(5,053	)
Income tax expense (benefit)			(4,013	)			(1,714	)
Net income (loss)		$	(7,377	)		$	(3,339	)
Earnings (loss) per share, fully diluted		$	(0.26	)		$	(0.38	)
Weighted average diluted shares			28,051,098				8,674,175

*		Derived from audited financial statements.

PARK STERLING CORPORATION
CONDENSED BALANCE SHEETS
($ in thousands)

		September 30,				June 30,				March 31,								September 30,
		2011				2011				2011				December 31,				2010
		(Unaudited)				(Unaudited)				(Unaudited)				2010 *				(Unaudited)
ASSETS
Cash and due from banks		$	14,962			$	14,349			$	54,192			$	2,433			$	11,591
Interest earning balances at banks			36,311				8,571				3,796				5,040				5,859
Investment securities available-for-sale			130,667				146,734				112,273				140,590				115,357
Federal funds sold			5,295				44,060				57,525				57,905				96,560
Loans held for sale			1,559				1,600				—				—				—
Loans			367,412				380,365				388,187				399,829				397,658
Allowance for loan losses			(9,833	)			(11,277	)			(11,768	)			(12,424	)			(13,150	)
Net loans			357,579				369,088				376,419				387,405				384,508
Other real estate owned			5,691				3,470				1,565				1,246				1,441
Bank owned life insurance			8,052				—				—				—				—
Other assets			22,267				22,796				22,646				21,489				17,314
Total assets		$	582,383			$	610,668			$	628,416			$	616,108			$	632,630
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Demand noninterest-bearing		$	42,890			$	42,156			$	37,098			$	36,333			$	30,468
Money market, NOW and savings			120,017				110,874				107,186				71,666				72,639
Time deposits			212,085				250,876				277,228				299,821				314,042
Total deposits			374,992				403,906				421,512				407,820				417,149
Short-term borrowings			1,083				1,661				1,213				874				1,100
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			4,796				4,622				4,026				3,418				3,639
Total liabilities			407,766				437,084				453,646				439,007				448,783
Shareholders’ equity:
Common stock			28,619				28,619				28,619				130,438				130,438
Additional paid-in capital			160,368				159,890				159,367				57,102				56,778
Accumulated deficit			(16,878	)			(15,502	)			(12,388	)			(9,501	)			(4,981	)
Accumulated other comprehensive income (loss)			2,508				577				(828	)			(938	)			1,612
Total shareholders’ equity			174,617				173,584				174,770				177,101				183,847
Total liabilities and shareholders’ equity		$	582,383			$	610,668			$	628,416			$	616,108			$	632,630
Common shares issued and outstanding			28,619,358				28,619,358				28,619,358				28,051,098				28,051,098

*		Derived from audited financial statements.

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

		September 30,				June 30,				March 31,								September 30,
		2011				2011				2011				December 31,				2010
		(Unaudited)				(Unaudited)				(Unaudited)				2010 *				(Unaudited)
Commercial:
Commercial and industrial		$	44,939			$	45,056			$	48,107			$	48,401			$	47,166
Commercial real estate — owner-occupied			66,979				61,878				52,764				55,089				51,779
Commercial real estate — investor income producing			108,558				111,349				113,612				110,407				101,359
Acquisition, construction and development			51,522				64,662				75,977				87,846				100,522
Other commercial			7,763				6,840				5,232				3,225				2,866
Total commercial loans			279,761				289,785				295,692				304,968				303,692
Consumer:
Residential mortgage			19,816				21,767				25,034				21,716				20,920
Home equity lines of credit			56,787				56,481				53,725				56,968				58,115
Residential construction			4,787				6,048				7,018				9,051				8,616
Other loans to individuals			6,530				6,494				6,811				7,245				6,413
Total consumer loans			87,920				90,790				92,588				94,980				94,064
Total loans			367,681				380,575				388,280				399,948				397,756
Deferred fees			(269	)			(210	)			(93	)			(119	)			(98	)
Total loans, net of deferred fees		$	367,412			$	380,365			$	388,187			$	399,829			$	397,658

*		Derived from audited financial statements.

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

		September 30,				June 30,				March 31,								September 30,
		2011				2011				2011				December 31,				2010
		(Unaudited)				(Unaudited)				(Unaudited)				2010 *				(Unaudited)
Beginning of period allowance		$	11,277			$	11,768			$	12,424			$	13,150			$	8,974
Provision for loan losses			568				3,245				4,462				8,237				6,143
Loans charged-off			2,113				4,096				5,581				9,000				1,986
Recoveries of loans charged-off			101				360				463				37				19
End of period allowance			9,833				11,277				11,768				12,424				13,150
Net loans charged-off		$	2,012			$	3,736			$	5,118			$	8,963			$	1,967
Annualized net charge-offs			2.19	%			3.87	%			5.16	%			8.86	%			1.97	%

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

		September 30, 2011												September 30, 2010
		Average				Income/				Yield/				Average				Income/				Yield/
		Balance				Expense				Rate				Balance				Expense				Rate
Assets
Interest-earning assets:
Loans with fees (1)		$	367,096			$	4,283				4.63	%		$	399,580			$	4,963				4.93	%
Fed funds sold			36,505				22				0.24	%			70,388				42				0.24	%
Taxable investment securities			118,445				681				2.30	%			50,216				370				2.95	%
Tax-exempt investment securities			16,201				181				4.47	%			14,570				161				4.42	%
Other interest-earning assets			30,496				44				0.57	%			4,971				23				1.84	%
Total interest-earning assets			568,743				5,211				3.64	%			539,725				5,559				4.09	%
Allowance for loan losses			(10,698	)											(9,061	)
Cash and due from banks			14,315												8,061
Premises and equipment			5,087												4,596
Other assets			29,607												12,339
Total assets		$	607,054											$	555,660
Liabilities and shareholders’ equity
Interest-bearing liabilities:
Interest-bearing demand		$	12,770			$	3				0.09	%		$	9,695			$	3				0.12	%
Savings and money market			107,069				155				0.57	%			52,138				101				0.77	%
Time deposits — core			141,154				487				1.37	%			192,666				909				1.87	%
Time deposits — brokered			93,906				381				1.61	%			125,007				581				1.84	%
Total interest-bearing deposits			354,899				1,026				1.15	%			379,506				1,594				1.67	%
Federal Home Loan Bank advances			20,000				140				2.78	%			20,000				144				2.86	%
Other borrowings			8,418				191				9.00	%			8,490				191				8.93	%
Total borrowed funds			28,418				331				4.62	%			28,490				335				4.67	%
Total interest-bearing liabilities			383,317				1,357				1.40	%			407,996				1,929				1.88	%
Net interest rate spread							3,854				2.23	%							3,630				2.21	%
Noninterest-bearing demand deposits			44,130												30,833
Other liabilities			5,210												2,168
Shareholders’ equity			174,397												114,663
Total liabilities and shareholders’ equity		$	607,054											$	555,660
Net interest margin											2.69	%											2.67	%

(1)		Average loan balances include nonaccrual loans.

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

		September 30,				June 30,				March 31.								September 30,
		2011				2011				2011				December 31,				2010
		Unaudited				Unaudited				Unaudited				2010 *				(Unaudited)
ASSET QUALITY
Nonaccrual loans		$	19,448			$	25,565			$	34,027			$	40,911			$	10,043
Troubled debt restructuring			2,001				2,002				1,198				1,198				3,314
Nonperforming loans			21,449				27,566				35,225				42,109				13,357
OREO			5,691				3,470				1,565				1,246				1,441
Loans held for sale			1,559				1,600				—				—				—
Nonperforming assets			28,699				32,637				36,790				43,356				14,797
Past due 30-59 days (and still accruing)			655				—				3,469				—				6,599
Past due 60-89 days (and still accruing)			819				—				—				—				660
Past due 90 days plus (and still accruing)			—				—				—				—				—
Nonperforming loans to total loans			5.84	%			7.25	%			9.07	%			10.53	%			3.36	%
Nonperforming assets to total assets			4.93	%			5.34	%			5.85	%			7.04	%			2.34	%
Allowance to total loans			2.68	%			2.96	%			3.03	%			3.11	%			3.31	%
Allowance to nonperforming loans			45.84	%			40.91	%			33.41	%			29.50	%			98.45	%
Allowance to nonperforming assets			34.26	%			34.55	%			31.99	%			28.66	%			88.87	%
CAPITAL
Book value per share		$	6.22			$	6.19			$	6.23			$	6.31			$	6.55
Tangible book value per share		$	6.22			$	6.19			$	6.23			$	6.31			$	6.55
Common shares outstanding			28,619,358				28,619,358				28,619,358				28,051,098				28,051,098
Dilutive common shares outstanding			28,051,098				28,051,098				28,051,098				28,051,098				28,051,098
Tier 1 capital		$	162,207			$	166,762			$	170,956			$	173,395			$	182,234
Tier 2 capital			13,124				12,143				12,035				12,373				12,280
Total risk based capital			175,331				178,905				182,991				185,768				194,514
Risk weighted assets			439,708				413,846				411,869				431,324				422,956
Average assets			596,997				616,034				604,498				637,650				555,655
Tier 1 ratio			36.89	%			40.30	%			42.25	%			40.20	%			43.09	%
Total risk based capital ratio			39.87	%			43.23	%			45.23	%			43.07	%			45.99	%
Tier 1 leverage ratio			27.17	%			27.07	%			28.36	%			27.39	%			32.80	%
Tangible common equity to tangible assets			29.98	%			28.43	%			27.81	%			28.75	%			29.06	%
LIQUIDITY
Net loans to total deposits			95.36	%			91.38	%			89.30	%			94.99	%			92.18	%
Liquidity ratio			49.70	%			53.09	%			53.99	%			50.48	%			54.99	%
Equity to Total Assets			29.98	%			28.43	%			27.81	%			28.75	%			29.06	%
INCOME STATEMENT (THREE MONTH RESULTS; ANNUALIZED)
Return on Average Assets			-0.91	%			-2.00	%			-1.93	%			-2.81	%			-2.64	%
Return on Average Equity			-3.16	%			-7.12	%			-6.60	%			-9.75	%			-12.80	%
Net interest margin (tax equivalent)			2.69	%			2.60	%			2.76	%			2.52	%			2.74	%
INCOME STATEMENT (ANNUAL RESULTS)
Return on Average Assets			n/a				n/a				n/a				-1.46	%			n/a
Return on Average Equity			n/a				n/a				n/a				-8.00	%			n/a
Net interest margin (tax equivalent)			n/a				n/a				n/a				2.95	%			n/a

*		Derived from audited financial statements.

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

		September 30,				June 30,				March 31,								September 30,
		2011				2011				2011				December 31,				2010
		(Unaudited)				(Unaudited)				(Unaudited)				2010 *				(Unaudited)
Tangible assets
Total assets		$	582,383			$	610,668			$	628,416			$	616,108			$	632,630
Less: intangible assets			—				—				—				—				—
Tangible assets		$	582,383			$	610,668			$	628,416			$	616,108			$	632,630
Tangible common equity
Total common equity		$	174,617			$	173,584			$	174,770			$	177,101			$	183,847
Less: intangible assets			—				—				—				—				—
Tangible common equity		$	174,617			$	173,584			$	174,770			$	177,101			$	183,847
Tangible book value per share
Issued and outstanding shares			28,619,358				28,619,358				28,619,358				28,051,098				28,051,098
Add: dilutive stock options			—				—				—				—				—
Deduct: nondilutive restricted awards			568,260				568,260				568,260				—				—
Period end dilutive shares			28,051,098				28,051,098				28,051,098				28,051,098				28,051,098
Tangible common equity		$	174,617			$	173,584			$	174,770			$	177,101			$	183,847
Divided by: period end dilutive shares			28,051,098				28,051,098				28,051,098				28,051,098				28,051,098
Tangible common book value per share		$	6.22			$	6.19			$	6.23			$	6.31			$	6.55
Earnings per share (excluding merger-related expenses)
Net income (loss)		$	(1,376	)		$	(3,114	)		$	(2,887	)		$	(4,521	)		$	(3,668	)
Plus: merger-related expenses			496				632				—				—				—
Less: related income tax expense			(174	)			(231	)			—				—				—
Net income (loss) (excluding merger-related expenses)		$	(1,054	)		$	(2,713	)		$	(2,887	)		$	(4,521	)		$	(3,668	)
Divided by: weighted average dilutive shares			28,051,098				28,051,098				28,051,098				28,051,098				15,998,924
Earnings per share (excluding merger-related expenses)		$	(0.04	)		$	(0.10	)		$	(0.10	)		$	(0.16	)		$	(0.23	)

*		Derived from audited financial statements.

AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS
NINE MONTHS

		September 30, 2011												September 30, 2010
		Average				Income/				Yield/				Average				Income/				Yield/
		Balance				Expense				Rate				Balance				Expense				Rate
Assets
Interest-earning assets:
Loans with fees (1)		$	383,242			$	13,491				4.71	%		$	398,381			$	15,275				5.13	%
Fed funds sold			48,555				85				0.23	%			34,358				60				0.23	%
Taxable investment securities			119,084				2,046				2.29	%			35,664				981				3.67	%
Tax-exempt investment securities			15,634				533				4.55	%			14,304				481				4.48	%
Other interest-earning assets			13,877				69				0.66	%			3,431				51				1.99	%
Total interest-earning assets			580,392				16,224				3.74	%			486,138				16,848				4.63	%
Allowance for loan losses			(11,569	)											(8,408	)
Cash and due from banks			17,424												7,915
Premises and equipment			4,757												4,619
Other assets			22,674												12,847
Total assets		$	613,678											$	503,111
Liabilities and stockholders’ equity
Interest-bearing liabilities:
Interest-bearing demand		$	11,737			$	11				0.13	%		$	9,440			$	6				0.08	%
Savings and money market			90,918				464				0.68	%			46,039				270				0.78	%
Time deposits — core			164,059				1,870				1.52	%			186,272				2,718				1.95	%
Time deposits — brokered			98,356				1,304				1.77	%			130,114				1,716				1.76	%
Total interest-bearing deposits			365,070				3,649				1.34	%			371,865				4,710				1.69	%
Federal Home Loan Bank advances			20,000				422				2.82	%			22,820				423				2.48	%
Other borrowings			8,276				571				9.22	%			8,747				578				8.83	%
Total borrowed funds			28,276				993				4.70	%			31,567				1,001				4.24	%
Total interest-bearing liabilities			393,346				4,642				1.58	%			403,432				5,711				1.89	%
Net interest rate spread							11,582				2.16	%							11,137				2.74	%
Noninterest-bearing demand deposits			40,322												28,571
Other liabilities			4,527												1,475
Stockholders’ equity			175,483												69,633
Total liabilities and stockholders’ equity		$	613,678											$	503,111
Net interest margin											2.67	%											3.06	%