Continues History of Innovation to Meet Client Demands

GREENVILLE, S.C. – The Palmetto Bank (the “Bank”), a wholly-owned subsidiary of Palmetto Bancshares, Inc. (NASDAQ: PLMT), announced today the launch of its new mobile banking application. With a simple tap on a smart phone or click of a button, clients can choose to bank with The Palmetto Bank wherever they want, whenever they want.

“We understand that clients are more sophisticated and busier than ever, which is why we are making it easy for them to bank on their terms,” said Samuel L. Erwin, President and Chief Executive Officer. “Our clients trust us with their money, and they want the ability to manage their money where they want, when they want, and how they want. Whether through our twenty five branches, twenty eight ATM machines, online banking, or mobile banking, we provide the convenience they demand.”

With the mobile banking app, available for iPhone®, Android, and BlackBerry®, clients using their smart phone have the ability to check available balances and transaction history, view recent transactions, transfer funds between accounts, pay bills, find the nearest branch or ATM, or contact our automated voice response service or speak to a Telephone Banker. SMS text messaging for certain banking transactions is also available for clients who don’t have a smart phone.

The launch of the mobile banking app is the most recent technology enhancement implemented by The Palmetto Bank this year. Other enhancements for consumers include upgraded online banking and automatic telephone voice response service, and enhanced deposit and trust statements with the ability to opt-in to e-statements. For businesses, the bank also implemented enhanced remote deposit capture and wire transfer services, as well as a dedicated eTreasury call center for client service. ATM upgrades to accept deposits are scheduled for later this year as well as a more functional and interactive website planned for 2013.

“All of these technology initiatives are part of our overall strategy to enhance the client experience,” continued Erwin. “In addition to improving electronic delivery of our banking services this year, we have also introduced expanded products and services such as our Small Business Administration lending, Corporate Banking and e-Treasury services. We have been providing innovative banking services to our clients for 106 years, and we are excited to continue adapting to meet evolving consumer and business needs in this very challenging economic environment.”