 NASDAQ: PLMT 1 Annual Meeting of Shareholders May 17, 2012 Exhibit 99.1 |
 NASDAQ: PLMT 2 Informational Update to Shareholders: Mike Glenn, Chairman of the Board |
 NASDAQ: PLMT Board Governance 1. Reconstituted Board of Directors in October 2010 (2011 = first full year) 2. Board leadership: – Separation of the Chairman and Chief Executive Officer – Independent Chairman beginning in January 2012 (and therefore eliminated the role of the Lead Director in January 2012) 3. Annual Board and Committee self-assessments, including anonymous Director surveys of peers – Attendance at various Directors colleges and conferences 4. Board committees – Written charters updated annually and published on our website – Annual written objectives by Committee – Addition of Board oversight of enterprise risk management in 2011 5. Executive sessions of independent Directors at Board and Committee meetings 6. Annual written performance plan and evaluation of the Chief Executive Officer 3 |
 NASDAQ: PLMT General Board Perspective • Observations from an article titled, “Banking’s Secret Sauce,” by Jack Milligan in Bank Director Magazine, 1 Quarter 2012 • The article summarized observations based on a ranking of the 150 largest publically traded banks and thrifts in the country based on profitability, capital strength and asset quality • The article identifies a list of traits that most top ranked banks have in common 4 st |
 NASDAQ: PLMT Trait #1: Leadership • CEOs are highly skilled managers – Who are backed by knowledgeable and engaged boards • These CEOs are leaders – Who understand their markets, their strategies and what it takes to be successful – Are strategists who can execute 5 |
 NASDAQ: PLMT Trait #2: Sustainable Strategies • The banks employ strategies that: – Avoid activities that entail excessive risk: for example, commercial real estate concentrations or high-risk residential mortgages (sub-prime) – Escape the wasting effects of commoditization: low-margin and plain vanilla products and services, and strategies that do not differentiate in price or features 6 |
 NASDAQ: PLMT Trait #3: Organizational Clarity • From the Board flowing through the bank, all have a shared sense of what it takes to be successful • The Board and senior management are fully aligned on strategy – And management understands what levers to pull to deliver optimal performance 7 |
 NASDAQ: PLMT The Palmetto Bank is on the Right Track 1. A leadership team that understands our industry and markets 2. A knowledgeable and engaged Board 3. A proactive and tailored strategy that is being consistently executed and showing continuously improving results 4. A sense of urgency with clear focus and strategic actions to return to profitability 5. Positioned in the attractive Upstate market that is exhibiting signs of stability and growth 8 |
 NASDAQ: PLMT Informational Update to Shareholders: Sam Erwin, Chief Executive Officer Lee Dixon, Chief Operating and Chief Risk Officer 9 |
 NASDAQ: PLMT 10 Non-GAAP Measures and Forward Looking Statements This presentation contains financial information determined by methods other than in accordance with Generally Accepted Accounting Principles (“GAAP”) such as net loss and pre-tax loss excluding credit-related items and one-time charges. Non- GAAP measures should not be considered as an alternative to any measure of performance as promulgated under GAAP. Investors should consider the Company’s recording of provision for loan losses, loan workout expenses, foreclosed real estate write downs and expenses and losses on commercial loans held for sale in the periods presented when assessing the performance of the Company. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. Certain statements in this presentation contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans and expectations, and are thus prospective. Such forward-looking statements are identified by words such as “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “targets,” and “projects,” as well as similar expressions. Forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Factors which could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements include, but are not limited to: (1) the strength of the United States economy in general and the strength of the local economies in which the Company conducts its operations which could result in, among other things, a deterioration in the credit quality or a reduced demand for credit, including the resultant effect on our loan portfolio and allowance for loan losses and the rate of delinquencies and amounts of charge-offs, or adverse changes in asset quality in our loan portfolio, which may result in increased credit risk-related losses and expenses; (2) adverse conditions in the stock market, the public debt market and other capital markets (including changes in interest rate conditions) and the impact of such conditions on the Company, and the timing and amount of future capital raising activities by the Company, if any; and (3) actions taken by banking regulatory agencies related to the banking industry in general and the Company or the Bank specifically. The assumptions underlying the forward-looking statements could prove to be inaccurate. Therefore, we can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by our Company or any person that the future events, plans, or expectations contemplated by our Company will be achieved. Additional factors that could cause our results to differ materially from those described in the forward-looking statements can be found in our reports (such as Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K) filed with the U.S. Securities and Exchange Commission (the “SEC”) and available at the SEC’s Internet site (http://www.sec.gov), including the “Risk Factors” included therein. All subsequent written and oral forward-looking statements concerning the Company or any person acting on its behalf is expressly qualified in its entirety by the cautionary statements above. We do not undertake any obligation to update any forward-looking statement to reflect changes in circumstances or events that occur after the date the forward-looking statements are made. |
 NASDAQ: PLMT 11 Commitments to our Shareholders 1. Communicate regularly 2. Provide clear and transparent information 3. Be accessible and visible 4. Listen to concerns and suggestions 5. Continue the rich legacy of our 105-year old institution 6. Protect the reputation of The Palmetto Bank 7. Work hard with dedication and perseverance to recover and optimize shareholder value |
 NASDAQ: PLMT Industry, Economic and Market Context 12 |
 NASDAQ: PLMT Industry Context: FDIC Fourth Quarter 2011 Statistics • Number of institutions = 7,357 at 12/31/11 – Down 1,177 (14%) from 8,534 at 12/31/07 – Down 7,801 (51%) from 15,158 at 12/31/90 • 417 failed banks since 12/31/07 (7 in South Carolina) • Industry on the mend with highest net income since 2006 and the fourth-quarter being the lowest level for quarterly charge-offs since first quarter 2008 • Reduction in nonperforming loans for seventh quarter in a row • Improving loan growth with the fourth quarter representing the largest quarterly increase since fourth quarter 2007 • Net interest income and noninterest income both declined in 2011 given – low interest rate environment – regulatory pressure on service charges and fees (second consecutive year and the fourth year in the last five years) 13 |
 NASDAQ: PLMT 14 Additional Economic and Market Context • Difficult economy but optimism for improvement with signs of growth in some markets in the Upstate • Credit quality concerns remain, but general improvement noted - real estate values remain depressed, but stabilization in certain segments and markets • Tepid loan growth overall and very competitive loan pricing for credit worthy commercial borrowers • Low interest rate environment and high levels of deposits resulting in compressed net interest margin • Focus on higher than normal capital levels, with expectations of higher required capital levels in the future • Congressional actions with higher costs and additional regulatory oversight, including the Dodd-Frank Act and Consumer Financial Protection Bureau |
 NASDAQ: PLMT The Palmetto Bank: 2011 in Review and 2012 Outlook 15 |
 NASDAQ: PLMT Overall Thoughts on 2011 • Great progress! • Improved credit quality and lower credit losses • Increased revenues • Reduced expenses • Improved earnings • Stabilized infrastructure • Ongoing talent management All resulting in a better and sustainable earnings picture (but not there yet…) 16 |
 NASDAQ: PLMT 17 Strategic Initiative Results (2011 vs. 2010) Change from 2010 Branch Loan Growth Production up 66% over 2010 ($24.5 million vs. $14.8 million) Began to outpace runoff Core Deposit Growth Grew core deposits over $37 million ($666 million vs. $629 million) Fee Income Growth Flat growth ($16.8 million vs. $17 million) Mortgage Flat production ($90 million vs. $91 million) Indirect Increased production by 47% ($24.5 million vs. $16.7 million) 2011 in Review: Retail |
 NASDAQ: PLMT 18 Strategic Initiative Results (2011 vs. 2010) Change from 2010 Commercial Loan Portfolio 6% decrease ($549 million vs. $583 million) New Loan Production Documented Calls 395% increase ($109 million vs. $22 million) Intentional effort to grow business (2,949 vs. 0 in 2010) Treasury Deposits 1.8% increase ($163 million vs. $160 million) Loan Fees 87% increase ($866 thousand vs. $463 thousand) 2011 in Review: Commercial |
 NASDAQ: PLMT Strategic Initiative Results (2011 vs. 2010) Change from 2010 Trust Asset Growth Assets up $18 million (7% increase) Trust Account Growth Grew number of accounts 39 (5% increase) Trust Net Income Growth Net income increase (22.8% increase) Brokerage Asset Growth Assets down $851 thousand (5% decrease) Brokerage Net Income Growth Net income increase (82% increase) 2011 in Review: Wealth Management 19 |
 NASDAQ: PLMT 2012 Outlook • Many of the general economic challenges we faced over the course of 2011 are continuing into 2012; however some have begun to moderate • Net interest income improvement through continued reduction in time deposits balances and rates • Improving loan production but still a challenge and very competitive • Focus on fee income with elimination of certain deposit service charge waivers • Recurring credit losses expected to be lower, although ongoing strategic evaluation of problem asset resolution strategies • Sustained focus on efficiency and expense reductions Projected to return to quarterly profitability in 2012 20 |
 NASDAQ: PLMT Strategic Focus 21 |
 NASDAQ: PLMT Evolution of Big Picture Strategic Focus • 2009 – Quantify depth of credit loss hole – Strategic Project Plan to survive and thrive – Prepare for regulatory agreement • 2010 – Raise capital – Process improvement – Change management • 2011 – Performance culture and talent management – Operating earnings – Client focus 22 • 2012 – Profitability – Expense reductions – Technology enhancements – Palmetto Partnership |
 NASDAQ: PLMT 23 Overall Big Picture Strategy 1. Retail Bank: primarily manage funding cost through low cost deposits 2. Commercial Bank: primarily generate income through loans 3. Wealth Management: primarily generate incremental revenue 4. Support departments: enable the above with disciplined expense management and sound risk management Out-service the big banks and out-muscle the little banks! |
 NASDAQ: PLMT 2012 Strategic Priorities 24 |
 NASDAQ: PLMT 25 2012 Strategic Priorities 1. Return to profitability 2. Improve asset quality 3. Exit regulatory agreement 4. Execute on client service and support through Palmetto Partnership 5. Develop a high performing culture and winning team Control our own destiny and earn the right to keep doing it our way! |
 NASDAQ: PLMT 1. Return to Profitability 26 |
 NASDAQ: PLMT Net Interest Margin 27 |
 NASDAQ: PLMT Efficiency Ratio 28 |
 NASDAQ: PLMT Operating Earnings 29 |
 NASDAQ: PLMT Pre-Tax (Loss) Income 30 |
 NASDAQ: PLMT Return to Profitability • $6.2 million of annual expense Savings through Automation, Vendor management and Efficiency • Asset-liability management and Internal Audit co- sourcing began January 1 • Branches: – Two consolidations completed on March 30 – Two sales targeted to close in the second quarter • Check processing outsourcing and related deposit statements process on April 27 Most savings start showing up in second quarter financial results. 31 |
 NASDAQ: PLMT Compensation and Benefit Reductions • Headcount reduced 20% from peak of 420 at 12/31/08 • Salary freeze re-instated in 2012 • Regular 401(k) Plan employer match suspended in 2012 32 |
 NASDAQ: PLMT The Path to Profitability • Making money on an operating basis even given – Low interest rates and flat yield curve (compressed net interest margin) – Higher regulatory costs and revenue restrictions (lower service charges, higher FDIC premiums, etc.) – High operating expenses from workout mode and catch up in infrastructure and technology The core franchise is generating income on a day-to-day basis. 33 |
 NASDAQ: PLMT 2. Improve Asset Quality 34 |
 NASDAQ: PLMT Return to Profitability and Improve Credit Quality • Objectives are inter-related with financial results driven primarily by credit losses • Significant reduction in problem assets and improving quarterly trends - reduced – Number of assets – Size of assets – Losses on assets • Strategic decisions continue to sell problem assets at discounts given ongoing cost to carry (taxes, insurance, legal fees, utilities, repairs, etc.) • Also evaluating sell vs. hold in relation to: – Regulatory and investor perspective on aggregate total amount – Morale and public perception of quarterly losses 35 |
 NASDAQ: PLMT Nonperforming Assets 36 |
 NASDAQ: PLMT Nonaccrual Loans - Gross Additions 37 |
 NASDAQ: PLMT Commercial Real Estate Loans 38 |
 NASDAQ: PLMT Commercial Real Estate Loans as a Percentage of Total Risk Based Capital 39 |
 NASDAQ: PLMT Provision for Loan Losses 40 |
 NASDAQ: PLMT 3. Exit Regulatory Agreement 41 |
 NASDAQ: PLMT Regulatory Examinations 42 • FDIC insurance premiums are based in part on the overall ratings from the annual Safety and Soundness examinations – Starting in the second quarter 2012, our annual premiums will be reduced by $1 million based on current deposit levels |
 NASDAQ: PLMT 4. Execute on Client Service and Support through Palmetto Partnership 43 |
 NASDAQ: PLMT The Path To Profitability! Project SAVE The Palmetto Partnership Profitability Driven by... Executing Clients 44 |
 NASDAQ: PLMT Technology Upgrades to Meet Client Expectations: Second Quarter Upgraded ATM fleet, locations and capability March Upgraded Telephone Automatic Voice Response Unit May Upgraded Remote Deposit Capture May Upgraded Real Time Internet Banking May Upgraded E-Statement System May New Mobile Friendly Web Site May New Mobile Banking June New Deposit Taking/Imaging ATMs June New Electronic Notices Delivered for Loans & Deposits June New Automated Wire Transfer System June 45 |
 NASDAQ: PLMT Technology Upgrades to Meet Client Expectations: Third Quarter 46 New Lockbox System July New Person to Person Payments July New Online Personal Finance System July Upgraded Web Site July New Commercial Positive Pay September New ACH Fraud Control September New Electronic Check Recovery September |
 NASDAQ: PLMT 5. Develop a High Performing Culture and Winning Team 47 |
 NASDAQ: PLMT Critical Elements of Our Evolving Culture 1. Continuous improvement culture (including possibility thinking “out of the red box”, automation, and expense consciousness) 2. Client service and support culture Palmetto Partnership 3. Performance culture (personally and corporately) 4. Winning culture! 48 We Win! |
 NASDAQ: PLMT Closing Thoughts 49 |
 NASDAQ: PLMT Summary Thoughts on the Path Forward 1. Significant progress on the path to profitability 2. Asset quality is being aggressively improved 3. Substantially completed the transition from “workout” mode to “business development” mode 4. Clarity of the path forward - more focused Bank, department, and individual objectives and expectations 5. Dedicated team and pride in our service 6. High expectations to cultivate a performance culture and winning team 7. Sense of urgency continues and we insist on results, not activity 8. We are moving the Bank forward – with intense focus on the bulls eye of profitability Proactive, comprehensive and focused strategic plan being executed 50 |
 NASDAQ: PLMT 51 Value of the Franchise • 105 year legacy with excellent reputation and strong brand recognition • Historical high performing financial results, with history of innovation and balanced and fair pricing to our clients • Premier deposit-gathering franchise in an attractive banking market with strong deposit gathering capability – 4 th largest bank headquartered in South Carolina – 6 th in deposit share in the Upstate and 1 st of banks headquartered in South Carolina – 25 branches in the economically attractive Upstate market along the Interstate 85 corridor between Atlanta and Charlotte • Heritage of deep client relationships and loyalty, with high touch client service platform to be leveraged for enhanced sales culture |