Greenville, S.C. – Palmetto Bancshares, Inc., a bank holding company whose principal banking subsidiary is The Palmetto Bank, announced today that its shareholders approved two amendments to the Company’s articles of incorporation necessary to consummate the previously announced $103 million private placement of its common stock with institutional investors. The amendments were approved at the August 6 shareholder meeting today, and resulted in an increase in the number of authorized shares of common stock from 25 million shares to 75 million shares and a reduction in the par value of the common stock from $5.00 per share to $0.01 per share.
“Obtaining shareholder approval of these proposals is a very important step for us to complete our capital raise,” said Samuel L. Erwin, Chief Executive Officer and President. “At this point, we have taken all the steps necessary to consummate the private placement, and are now awaiting the necessary bank regulatory approvals and determinations.”
The Company expects to use the net proceeds from the private placement primarily to contribute capital to The Palmetto Bank. The capital contribution to the Bank will result in the Bank’s capital adequacy ratios exceeding the minimum capital levels required to be categorized as “well capitalized”. Under the stock purchase agreement with the investors, the Company also is permitted to conduct a $10 million offering after the closing of the private placement that would allow current shareholders to purchase common stock of the Company.
“Our shareholders took these proposals very seriously,” said L. Leon Patterson, Chairman of the Board. “Creating long-term shareholder value remains a critically important element of our corporate mission, and we continue to take value generating actions to reposition the Company for the future. We appreciate the loyal support of our shareholders as we continue to focus on charting a new direction for the future of The Palmetto Bank.”
Headquartered in Greenville, South Carolina, The Palmetto Bank is a 103-year old independent statechartered commercial bank and is the fifth-largest banking institution headquartered in South Carolina. The Palmetto Bank has assets of $1.4 billion and serves the Upstate through 29 banking locations in Abbeville, Anderson, Cherokee, Greenville, Greenwood, Laurens, Oconee, Pickens, Spartanburg and York counties. The Bank specializes in providing personalized community banking services to individuals and small to mid-size businesses including Retail and Commercial Banking, Mortgage, Trust, Brokerage, and Insurance. Additional information may be found at the Company’s web site at www.palmettobank.com.