Exhibit 99.1

Message to Shareholders

Greer Bancshares Incorporated

August 12, 2011

Dear Shareholders and Friends:

For the quarter ended June 30, 2011, Greer Bancshares Incorporated reported a net loss of $(1,742,000) before TARP-related expenses of $161,000, resulting in a net loss attributable to common shareholders of $(1,903,000) or $(0.77) per diluted common share. For the six months ended June 30, 2011, the net loss was ($1,781,000) before TARP related expenses of $325,000, resulting in a net loss attributable to common shareholders of $(2,106,000) or $(0.85) per diluted common share. Obviously the losses are very disappointing and merit some explanation and clarification.

Once again, the major factor leading to the net loss in the second quarter was a significant charge-off of $1,981,000 resulting from a new appraisal on a non-performing, residential subdivision loan. In 2010, the appraisal on this Greer residential subdivision, performed by a reputable, local MAI appraiser, reported a market value of $4.9 million; however, in the second quarter of 2011, a new appraisal on this property by another local and reputable MAI appraiser, produced an appraised value of $1,825,000, a decrease of 62.75% in value from one year ago. Given the magnitude of this decrease in appraised value, we deemed it prudent to request a second appraisal, and unfortunately the second appraisal confirmed the value of the first 2011 appraisal. Therefore, in May we charged-off the difference between the loan balance on our books and the appraised value. It is difficult to understand how real estate values could decrease so significantly in one year, but the lack of lot and home sales, particularly in “high-end or upscale” subdivisions have significantly diminished lot and home values.

Primarily as a result of this large charge-off in May, the Bank added $1,995,000 to its loan loss provision in the second quarter, bringing the loan loss reserves to $7,033,000 or 2.90% of total loans at June 30, 2011, compared to $7,495,000 or 2.78% of total loans at December 31, 2010. Planned reductions in the size of the loan portfolio during the second quarter increased the loan loss reserves relative to total loans outstanding.

Non-performing assets have decreased to $22,217,000 as of June 30, 2011, from $27,743,000 at year-end 2010, confirming good results from our aggressive plan for reducing non-performing loans.

As of June 30, 2011:

Recent trends in the Bank’s past dues and non-performing loans indicate our loan portfolio has shown signs of stabilization. We are proactively working past due loans and non-performing loans, working with customers to bring their accounts current and thereby reduce collection and legal expenses from delinquent or non-performing loans.

Although the Bank did not meet the minimum leverage capital requirement of the Consent Order, the Bank continues to exceed statutory minimum regulatory capital requirements and management continues to explore strategies to further enhance the Bank’s capital position in the quarters ahead. We work closely with our regulators and advisors to ensure that our strategies and efforts on capital enhancement are appropriate and properly aligned.

We sincerely thank you for your past support, patience and understanding which we value highly. While no one can predict the future, we are hopeful the worst experiences are behind us. There may be periodic surprises and disappointments ahead, but we believe our efforts will begin to yield not only progress but also profits.

We welcome your comments for improving your Company and our communications with you.

CONSOLIDATED

BALANCE SHEET

Unaudited

Dollars in thousands, except per share data

CONSOLIDATED

STATEMENTS OF LOSS

Unaudited

Dollars in thousands, except per share data

***********

Forward-looking and cautionary statements

This report contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements relate to among other things, future economic performance plans and objectives of management for future operations, and projections of revenues and other financial items that are based on the beliefs of management as well as assumptions made by and information currently available to management. The words “may,” “will,” “anticipate,” “should,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “may,” and “intend,” as well as other similar words and expressions, are intended to identify forward-looking statements. Actual results may differ materially from the results discussed in the forward-looking statements. The Company’s operating performance is subject to various risks and uncertainties including without limitation:

For a description of factors which may cause actual results to differ materially from such forward-looking statements, see the Company’s Annual Report on Form 10-K for the year ended December 31, 2010, and other reports from time to time filed with or furnished to the Securities and Exchange Commission. Investors are cautioned not to place undue reliance on any forward-looking statements as these statements speak only as of the date when made. The Company undertakes no obligation to update any forward-looking statements made in this report.

Greer Bancshares Incorporated and Greer State Bank

Directors

GREER STATE BANK

OFFICE LOCATIONS

MAIN OFFICE &

GREER FINANCIAL SERVICES

1111 West Pointsett Street

Greer, South Carolina 29650

BRANCH OFFICES

601 North Main Street

Greer, South Carolina 29650

871 South Buncombe Road

Greer, South Carolina 29650

3317 Wade Hampton Boulevard

Taylors, SC 29687

864-877-2000

“TELEBANKER”- 864-879-2265

www.greerstatebank.com

Member FDIC