And Completion of Strategic Actions to Accelerate Return to Profitability

GREENVILLE, S.C. – Palmetto Bancshares, Inc. (NASDAQ: PLMT) reported a consolidated net loss for the second quarter 2012 of $7.2 million, compared to a consolidated net loss for the first quarter 2012 of $587 thousand. The increase in the net loss was primarily due to the strategic decision to sell $40.3 million of problem assets at discounted prices which resulted in incremental charge-offs and credit expenses of $15.6 million during the second quarter. Results for the second quarter 2012 also include gains of $9.9 million on the sale of investment securities, which was similarly part of a strategic decision to realize gains on the investment securities portfolio to offset a portion of the incremental charge-offs and credit expenses resulting from the problem asset sale. Total credit-related expenses for the second quarter were $18.0 million, compared to $4.4 million in the first quarter 2012. Excluding credit-related expenses, securities gains and one-time charges, pre-tax operating earnings were $4.5 million in the second quarter 2012, compared to $4.7 million in the first quarter 2012 reflecting the positive underlying earnings capacity of the Company. Read more…