Palmetto Bancshares Inc : Sam Erwin Elected Chairman of the Board of Palmetto Bancshares, Inc.

FOR IMMEDIATE RELEASE Media Contact:

December 20, 2013 Brent W illiams, 864.250.6061 [e-mail]

Sam Erwin Elected Chairman of the Board of Palmetto Bancshares, Inc.

GREENVILLE, S.C. - On December 19, 2013, the Boards of Directors of Palmetto Bancshares, Inc. and The Palmetto Bank (collectively, the "Company") elected Samuel L. Erwin, Chief Executive Officer of the Company, as Chairman of the Board effective January 1, 2014. Mr. Erwin has successfully led the Company as the Chief Executive Officer since 2010. Assuming the additional responsibility of Chairman of the Board positions Mr. Erwin to expand his leadership role in the development and execution of the Company's strategic plans.
"I am tremendously humbled and honored to assume the role of Chairman of the Board," said Mr. Erwin. "Over its 107 year history, The Palmetto Bank has only had a few others serve in this role, and I am deeply appreciative of the opportunity to continue the Company's rich heritage."
Mr. Erwin succeeds Michael D. Glenn who previously served as Chairman of the Board and will remain on the Board. "Mike provided excellent leadership to our Board during the very challenging economic environment of the past two years. Mike and I worked together collaboratively to provide leadership to the Company, and I look forward to continuing to work with Mike and the rest of the Board as we begin the new year," continued Mr. Erwin.

About The Palmetto Bank (Nasdaq: PLMT):

Headquartered in Greenville, South Carolina, The Palmetto Bank is a 10 7-year old state-chartered community bank and is the third largest banking institution headquartered in South Carolina. The Palmetto Bank has assets of $1.1 billion and serves the Upstate through 25 branch locations in nine counties of the Upstate of South Carolina, as well as 24/7/365 service through online and mobile banking and ATMs. The Bank has a unique understanding of the Upstate market and delivers local decision making with greater responsiveness to clients. Through its Retail, Commercial and W ealth Management lines of business, the Bank specializes in providing financial solutions to consumers and small to mid-size businesses with deposit and cash management products, loans (including consumer, Small Business Administration, commercial, corporate, mortgage, credit card and automobile), lines of credit, trust, brokerage, private banking, financial planning and insurance. Recently

306 East North Street, Greenville, South Carolina 29601 palmettobank.com Phone: [phone] Fax: [phone]

recognized by several international publications for innovative client solutions, the Bank provides technology solutions that improve the client experience by providing clients the ability to bank whenever they want, wherever they want. Additional information may be found at the Bank's website at palmettobank.comor on Facebook.

306 East North Street, Greenville, South Carolina 29601 palmettobank.com Phone: [phone] Fax: [phone]