Part of Recently Announced Enhanced Wealth Management Strategy

GREENVILLE, S.C.– Palmetto Financial Services (“Palmetto”), The Palmetto Bank’s trust and investment services division, has added three new members to its Wealth Management team serving the Upstate market. George A. Campbell, Jr. has been appointed as the overall market President, William J. (“Bill”) Boswell, Jr. as the Chief Fiduciary Officer, and Scott C. Cheney as a Trust assistant. These new additions to Palmetto’s team are part of the expanded Wealth Management strategy announced on April 30 to provide enhanced financial advisory services to its clients.

Mr. Campbell, a Furman University and University of Georgia School of Law graduate, is a Greenville resident and most recently served as the Assistant Solicitor in the Office of Thirteenth Circuit Solicitor that serves Greenville and Pickens Counties. Mr. Boswell, a long-term Greenville resident, brings over 40-years of trust and financial services experience to Palmetto. He is a past or present director of multiple local community and civic organizations including the March of Dimes, Greenville Museum Association, Urban League Housing Corporation, Greater Greenville Chamber of Commerce, Young Life, Estate Planning Council of Greenville, and the Greenville Country Club. Mr. Cheney is a graduate of Hampden-Sydney College and is currently enrolled in the Cannon Financial Institute trust school.

“Our desire is to invest in and grow our trust and investment services business,” said Samuel L. Erwin, President and Chief Executive Officer of The Palmetto Bank. “George Campbell and Bill Boswell are well-known and respected members of the Upstate community, and are excellent additions to lead our trust and investment services division. We have been providing trust services to our clients for over fifty years and currently have a team of very seasoned trust officers. By adding leaders the caliber of George and Bill, we believe we have the team to become the premier provider of trust and investments services in the Upstate.”

On April 30, The Palmetto Bank announced an agreement to transfer designated trust-related accounts to Thomasville National Bank (“TNB”) along with the corresponding fiduciary and operational responsibilities, to be effective in late June. Under the agreement, these additions to the Palmetto team will be employees of TNB and will serve current and future Palmetto trust and investments clients from the existing offices in The Palmetto Bank.

About The Palmetto Bank: The Palmetto Bank, the wholly-owned banking subsidiary of Palmetto Bancshares, Inc. (NASDAQ: PLMT), is a community-oriented bank with $1.1 billion in total assets headquartered in Greenville, South Carolina (www.palmettobank.com). The Bank is a 106-year old independent state-chartered commercial bank and is the fourth largest banking institution headquartered in South Carolina. The Bank serves the Upstate through 25 branch locations in the nine counties of the Upstate. The Bank specializes in providing personalized community banking services to individuals and small to mid-size businesses including Retail Banking (including Mortgage, Credit Cards and Indirect Auto), Commercial Banking (including Small Business Administration loans, Business Banking, Corporate Banking, Treasury Management and Merchant Services), and Wealth Management (including Trust, Brokerage, Financial Planning, and Insurance).

About Thomasville National Bank: TNB is headquartered in Thomasville, Georgia(www.tnbank.com). TNB was founded in 1995 and as of March 31, 2013 had trust and brokerage assets under management of $1.2 billion in five states.