Exhibit 99.1

Park Sterling Corporation Announces

Results for Third Quarter 2016

Charlotte, NC – October 27, 2016 – Park Sterling Corporation (NASDAQ: PSTB), the holding company for Park Sterling Bank, today released unaudited results of operations and other financial information for the third quarter of 2016. Highlights at and for the three months ended September 30, 2016 include:

Highlights

“We are pleased with our results for the third quarter of 2016,” said James C. Cherry, Chief Executive Officer. “Our priorities for 2016 have included achieving attractive earnings growth accompanied by steadily improving returns, as demonstrated by our financial performance in the quarter. We believe that Park Sterling’s distinguishing strengths will enable us to achieve our original vision of building a full service, highly regarded regional community bank serving markets in the Carolinas, Virginia, and North Georgia. These distinguishing strengths include our position in high growth markets, our exceptionally talented and experienced banking professionals, our capabilities in offering high quality products and services to our customers, strong risk culture, and solid financial condition.”

Financial Results

Income Statement – Three Months Ended September 30, 2016

Park Sterling reported net income of $6.3 million, or $0.12 per share, for the three months ended September 30, 2016 (“2016Q3”). This compares to net income of $5.6 million, or $0.11 per share, for the three months ended June 30, 2016 (“2016Q2”) and net income of $4.8 million, or $0.11 per share, for the three months ended September 30, 2015 (“2015Q3”). The increase in net income from 2016Q2 resulted from reduced expenses across most categories of noninterest expense and lower expenses for loan losses reflecting strong credit quality. The increase in net income from 2015Q3 resulted from an increase in net interest income, partially offset by an increase in noninterest expenses, reflecting the inclusion of First Capital.   

Park Sterling reported adjusted net income, which excludes merger-related expenses and gain or loss on sale of securities, of $7.3 million, or $0.14 per share, in 2016Q3. This compares to adjusted net income of $6.4 million, or $0.12 per share, in 2016Q2 and adjusted net income of $4.7 million, or $0.11 per share, in 2015Q3. Compared to 2016Q2, the increase in adjusted net income reflects lower noninterest expense and a lower provision for loan losses; compared to 2015Q3, the increase in adjusted net income reflects higher net interest income and noninterest income, partially offset by increased noninterest expense.

Net interest income totaled $25.8 million in 2016Q3, which represents a $227 thousand, or 1%, decrease from $26.1 million in 2016Q2 and a $5.8 million, or 27%, increase from $20.4 million in 2015Q3. Average total earning assets increased $57.0 million in 2016Q3 to $2.90 billion, compared to $2.84 billion in 2016Q2 and increased $643.9 million, or 29%, compared to $2.26 billion in 2015Q3. The increase in average total earning assets in 2016Q3 from 2016Q2 included an increase in average loans (including loans held for sale) of $49.7 million, or 2%, a decrease in average marketable securities of $.4 million, and an increase in average other interest-earning assets of $7.7 million, or 16%. The increase in average total earning assets in 2016Q3 from 2015Q3 resulted primarily from a $667.3 million, or 40%, increase in average loans (including loans held for sale) as a result of both organic growth and the merger with First Capital, partially offset by a $9.0 million, or 2%, decrease in average marketable securities and a $14.4 million, or 21%, decrease in average other earning assets.

Net interest margin was 3.54% in 2016Q3, representing a 15 basis point decrease from 3.69% in 2016Q2 and a 4 basis point decrease from 3.58% in 2015Q3. The decrease in net interest margin from 2016Q2 resulted primarily from a 19 basis point decrease in yield on loans to 4.49%, as the yield on loans in 2016Q2 included a higher level of accretion of the acquired performing fair value mark related to the acquisition of First Capital loans, as well as accretion tied to acquired loans related to other mergers. In addition, the cost of interest-bearing liabilities decreased 2 basis points from 2016Q2 due to a reduction in the cost of wholesale funding sources and a modest decline in the cost of money market deposits. The reduction in net interest margin from 2015Q3 was significantly impacted by the merger with First Capital which was completed on January 1, 2016.  The change was primarily driven by higher rates on interest bearing deposits and the cost associated with the $30 million senior term loan that was used to partially fund the merger, offset in part by the addition of higher yielding earning assets as a result of the merger.

The Company reported $642,000 of provision expense in 2016Q3, compared to $882,000 of provision recorded in 2016Q2, and no provision in 2015Q3. Allowance for loan loss levels increased to 0.49% of total loans at 2016Q3 compared to 0.47% at 2016Q2.

Noninterest income totaled $5.4 million in 2016Q3, compared to $5.4 million in 2016Q2 and increased $520 thousand, or 11%, compared to $4.9 million in 2015Q3. Compared to 2016Q2, service charges on deposit accounts and mortgage banking income increased by $143 thousand and $142 thousand, respectively, while income from wealth management activities and FDIC loss share indemnification asset and true up liability expense was lower by $124 thousand and $114 thousand respectively. The increase in noninterest income from 2015Q3 reflects higher capital markets income, mortgage banking income and higher service charges on deposit accounts. Offsetting these increases from 2015Q3 are lower wealth management income and income from bank owned life insurance.

Noninterest expenses decreased $834 thousand, or 4%, to $21.1 million in 2016Q3 compared to $21.9 million in 2016Q2, and increased $2.7 million, or 15%, compared to $18.4 million in 2015Q3. Adjusted noninterest expenses, which exclude merger-related expenses ($1.5 million in 2016Q3, $1.3 million in 2016Q2 and $31 thousand in 2015Q3), decreased $1.1 million, or 5%, to $19.6 million in 2016Q3 compared to $20.7 million in 2016Q2, and increased $1.2 million, or 7%, compared to $18.4 million in 2015Q3. The decrease in adjusted noninterest expenses from 2016Q2 was due primarily to decreases of $322 thousand in salaries and employee benefits, $243 thousand in advertising and promotion and $409 thousand in other noninterest expense. The other notable decrease was a $162 thousand decrease in the net cost of operation of OREO, which was caused primarily by the termination of the FDIC loss share agreements. Offsetting these decreases was a $156 thousand increase in loan and collection expense, reflecting in part the termination of the FDIC loss share agreements, and modest increases in occupancy and equipment, legal and professional fees and communication fees. The increase in adjusted noninterest expenses from 2015Q3 is primarily a function of the merger with First Capital.

The Company’s effective tax rate was 33.5% in 2016Q3, compared to 35.4% in 2016Q2 and 30.5% in 2015Q3. The decline in the effective tax rate was caused by changes in the proportion of permanent tax differences to pretax income.

Balance Sheet

Total assets increased $52.9 million, or 2%, to $3.2 billion at 2016Q3, as compared to total assets of $3.2 billion at 2016Q2. Total securities, including non-marketable securities, increased $11.0 million, to $520.7 million. Total loans, excluding loans held for sale, increased $42.1 million, or 7% annualized, to $2.4 billion at 2016Q3.

The mix of commercial and consumer loans remained consistent with 2016Q2. Total commercial loans increased $36.8 million and represent 78% of the loan portfolio. Acquisition, construction and development loans increased $38.6 million and represent 15% of the portfolio. Total consumer loans increased $42.9 million and remain flat as a percentage of total loans at 22% of the portfolio.

Total deposits increased $10.9 million, or 2% annualized, to $2.5 billion at 2016Q3. Noninterest bearing demand deposits increased $9.4 million, or 8% annualized, to $505.6 million (20% of total deposits). Money market, NOW and savings deposits were level with 2016Q2 and represent 49% of total deposits. Time deposits increased $1.8 million to $750.0 million at 2016Q3.

Total borrowings increased $45.2 million, or 15%, to $343.1 million at 2016Q3 compared to $297.8 million at 2016Q2. At 2016Q3, FHLB borrowings totaled $280.0 million, the senior unsecured term loan at the holding company totaled $29.7 million, and acquired trust preferred securities, net of acquisition accounting fair value marks, totaled $33.3 million.  Short term FHLB borrowings increased by $80.0 million from 2016Q2 to $280.0 million due to $35 million of long term debt being reclassified as short term debt, as the maturity date of these borrowings at 2016Q3 was less than one year to maturity, with the remainder of the increase funding balance sheet growth during the period.

Total shareholders’ equity increased $4.2 million, or 1%, to $358.7 million at 2016Q3 compared to $354.5 million at 2016Q2, driven by an increase in retained earnings. The Company’s ratio of common equity to assets was 11.12% at 2016Q3 compared to 11.17% at 2016Q2. The Company’s ratio of tangible common equity to tangible assets remained at 9.00% at both 2016Q3 and 2016Q2. The Company’s Common Equity Tier 1 (“CET1”) ratio decreased to 11.07% at 2016Q3 compared to 11.14% at 2016Q2 due to an increase in risk weighted assets. The Company’s Tier 1 leverage ratio was 10.06% at both 2016Q3 and 2016Q2.

Asset Quality

Asset quality continues to remain strong. Nonperforming assets were $14.2 million at 2016Q3, or 0.44% of total assets, compared to $11.0 million at 2016Q2, or 0.35% of total assets. Nonperforming loans were $11.5 million at 2016Q3, and represented 0.48% of total loans, compared to $7.8 million at 2016Q2, or 0.33% of total loans. The increase in nonperforming loans reflects the addition of two loans that are well secured and currently are not expected to result in a loss. The Company reported net recoveries of $97 thousand, or 0.02% of average loans (annualized) in 2016Q3, compared to net recoveries of $159 thousand, or 0.03% of average loans (annualized), in 2016Q2.

The allowance for loan losses increased $739 thousand, or 7%, to $11.6 million, or 0.49% of total loans, at 2016Q3, compared to $10.9 million, or 0.47% of total loans, at 2016Q2. The increase in allowance is primarily attributable to the increase in outstanding loans at period end. There was no significant change in the qualitative component of the allowance, which reflects management’s judgment of inherent loss in the loan portfolio not represented in historic loss rates.

Conference Call

A conference call will be held at 8:30 a.m., Eastern Time this morning (October 27, 2016). The conference call can be accessed by dialing (877) 512-1104 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 approximately one hour after the call by dialing (877) 344-7529 and requesting conference number 10094052.

About Park Sterling Corporation

Park Sterling Corporation, the holding company for Park Sterling Bank, is headquartered in Charlotte, North Carolina. Park Sterling, a regional community-focused financial services company with $3.2 billion in assets, is the largest community bank headquartered in the Charlotte area and has 56 banking offices stretching across the Carolinas and into North Georgia, as well as in Richmond, Virginia. The bank serves professionals, individuals, and small and mid-sized businesses by offering a full array of financial services, including deposit, mortgage banking, cash management, consumer and business finance, capital markets and wealth management services with a commitment to “Answers You Can Bank On^SM.” Park Sterling prides itself on being large enough to help customers achieve their financial aspirations, yet small enough to care that they do. Park Sterling is focused on building a banking franchise that is noted for sound risk management, strong community focus and exceptional customer service. For more information, visit www.parksterlingbank.com. Park Sterling Corporation shares are traded on NASDAQ under the symbol PSTB.

Non-GAAP Financial Measures

Tangible assets, tangible common equity, tangible book value, average tangible common equity, adjusted net income, adjusted operating revenues, adjusted noninterest income, adjusted noninterest expenses, adjusted operating expense, adjusted allowance for loan losses, and related ratios and per share measures, including adjusted return on average assets and adjusted return on average equity, as used throughout this release, are non-GAAP financial measures. For additional information, see “Reconciliation of Non-GAAP Financial 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 or forecasts of future events, results and conditions and, by their nature, are subject to risks and uncertainties and there are a number of factors that could cause actual results to differ materially from those in such statements. Factors that might cause such a difference include, but are not limited to: changes in loan mix, deposit mix, capital and liquidity levels, emerging regulatory expectations and measures, net interest income, noninterest income, noninterest expense, credit trends and conditions, including loan losses, allowance for loan loss, charge-offs, delinquency trends and nonperforming asset levels, deterioration in the credit quality of the loan portfolio or the value of collateral securing loans, deterioration in the value of securities held for investment, the impacts of a potential increasing rate environment, and other similar matters; inability to identify and successfully negotiate and complete additional combinations with other potential merger partners or to successfully integrate such businesses into Park Sterling, including the Company’s ability to adequately estimate or to realize the benefits and cost savings from and limit any unexpected liabilities acquired as a result of any such business combinations; failure to generate an adequate return on investment related to new branches or other hiring initiatives; inability to generate future organic growth in loan balances, retail banking, wealth management, mortgage banking or capital markets results through the hiring of new personnel, development of new products, including new online and mobile banking platforms for treasury services, opening of de novo branches or otherwise; inability to capitalize on identified revenue enhancements or expense management opportunities, including the inability to achieve or maintain adjusted operating expense to adjusted operating revenue targets; inability to generate future ATM and card income from marketing expenses; the effects of negative or soft economic conditions, including stress in the commercial real estate markets or failure of continued recovery in the residential real estate markets; changes in consumer and investor confidence and the related impact on financial markets and institutions; the possibility of recognizing other than temporary impairments on holdings of collateralized loan obligation securities as a result of the Volcker Rule; the potential impacts of any government shutdown or debt ceiling impasse, including the risk of a U.S. credit rating downgrade or default, or continued global economic instability, which could cause disruptions in the financial markets, impact interest rates, and cause other potential unforeseen consequences; fluctuations in the market price of the common stock, regulatory, legal and contractual requirements, other uses of capital, financial performance, market conditions generally, and future actions by the board of directors, in each case impacting repurchases of common stock or declaration of dividends; legal and regulatory developments, including changes in the federal risk-based capital rules; increased competition from both banks and nonbanks; changes in accounting standards, rules and interpretations, inaccurate estimates or assumptions in accounting, including acquisition accounting fair market value assumptions and accounting for purchased credit-impaired loans, and the impact on Park Sterling’s financial statements; and management’s ability to effectively manage credit risk, market risk, operational risk, legal risk, and regulatory and compliance risk.

You should not place undue reliance on any forward-looking statement and should consider all of the preceding uncertainties and risks, as well as those more fully discussed in any of Park Sterling’s filings with the SEC. 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.

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For additional information contact:

Donald K. Truslow

Chief Financial Officer

(704) 716-2134

don.truslow@parksterlingbank.com 

PARK STERLING CORPORATION

CONDENSED CONSOLIDATED INCOME STATEMENT

THREE MONTH RESULTS 

PARK STERLING CORPORATION

CONDENSED CONSOLIDATED INCOME STATEMENT

NINE MONTH RESULTS

PARK STERLING CORPORATION

WEALTH MANAGEMENT ASSETS

($ in thousands)

PARK STERLING CORPORATION

MORTGAGE ORIGINATION

($ in thousands)

PARK STERLING CORPORATION          

CONDENSED CONSOLIDATED BALANCE SHEETS      

* Derived from audited financial statements.

PARK STERLING CORPORATION

SUMMARY OF LOAN PORTFOLIO

($ in thousands)

* Derived from audited financial statements.

* Derived from audited financial statements.

** Includes loans transferred from acquired pools following release of acquisition accounting FMV adjustments.

PARK STERLING CORPORATION

ALLOWANCE FOR LOAN LOSSES

THREE MONTH RESULTS

* Derived from audited financial statements.

PARK STERLING CORPORATION

ACQUIRED LOANS

($ in thousands)

PARK STERLING CORPORATION

AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS

THREE MONTHS