Greenville, S.C. – Palmetto Bancshares, Inc., a bank holding company whose principal banking subsidiary is The Palmetto Bank, announced today that regulatory approval of the Federal Reserve Board has been received to consummate the previously announced $103 million private placement of its common stock with institutional investors.
“Obtaining this regulatory approval was a key step for us to complete our private placement,” said Samuel L. Erwin, Chief Executive Officer. “We currently expect to close the transaction in early October.” Erwin continued, “Our Board of Directors and employees have worked tirelessly over the past eighteen months to position the Company to raise capital. Completing the capital raise in this very challenging economic environment is a testament to our hard work and the value of The Palmetto Bank franchise.”
The Company will 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 to current shareholders to purchase common stock of the Company.
“Moving closer to completing our capital raise is very important,” said L. Leon Patterson, Chairman of the Board. “We appreciate the loyal support of our shareholders over our 104-year history and we continue to take value generating actions to reposition the Company for the future.”
Headquartered in Greenville, South Carolina, The Palmetto Bank is a 104-year old independent state-chartered 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.
Certain investments discussed in this News Release involve the sale of securities in private transactions that will not be registered under the Securities Act of 1933 and will be subject to the resale restrictions under that Act. Such securities may not be offered or sold absent registration or an applicable exemption from registration. This News Release does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.