Reduction in Credit-Related Expenses Leads to Return to Profitability

GREENVILLE, S.C. – Palmetto Bancshares, Inc. (NASDAQ: PLMT) (the “Company”) reported third quarter 2012 net income of $3.2 million ($0.25 per diluted share) compared to a net loss of $7.2 million ($0.57 per diluted share) for the second quarter 2012. The improvement in financial results was primarily due to significant reductions in credit-related expenses reflective of continued improvement in credit quality trends. “Our return to profitability during the third quarter is another significant step forward as we continue to execute our Strategic Plan. We believe our results for the third quarter reflect the underlying earnings strength of our franchise and the results of our persistent and aggressive efforts to address the credit quality issues that have been negatively impacting our financial results since early 2009,” said Samuel L. Erwin, Chief Executive Officer. “Our credit-related expenses appear to have returned to a much lower and more stable and predictable level, which is expected to lead to sustained profitability going forward. Our credit quality issues are largely behind us and we are now applying an increased focus and emphasis on enhancing the client experience to meet changing consumer and business expectations. We expect that adapting our products, services and technology to what the marketdemands will lead to increased revenue growth going forward.”  Read more…