Exhibit 99.1

The Palmetto Bank Reports Second Quarter Net Income of $2.0 Million

Net Income of $4.8 Million for the Six Months Ended June 30, 2015

Greenville, S.C. – ☐Palmetto Bancshares, Inc. (NASDAQ: PLMT) (the “Company”) reported second quarter 2015 net income of $2.0 million ($0.16 per diluted common share) compared to first quarter 2015 net income of $2.7 million ($0.21 per diluted common share). Results for the second quarter 2015 and the six months ended June 30, 2015 include pre-tax merger-related expenses of $1.4 million related to the Company’s proposed merger with United Community Banks, Inc. (“United”) as previously announced on April 22, 2015. Income before provision for income taxes and merger-related expenses was $5.0 million in the second quarter 2015 ($4.2 million in the first quarter 2015) and $9.2 million for the six months ended June 30, 2015 ($6.4 million for the six months ended June 30, 2014). The Company also declared a quarterly cash dividend of $0.08 per common share payable on August 17, 2015 to shareholders of record on August 3, 2015.

“Our financial results for the second quarter and the first half of 2015 continue to reflect the fundamental strength of our franchise as evidenced by increased loan production, strong growth in core deposits, and increased earnings before merger-related expenses,” said Samuel L. Erwin, Chairman and Chief Executive Officer. “We experienced another strong quarter of organic loan production which continued a positive trend that began in late 2014. Organic loan production for the first six months of 2015 was $175 million, which compared favorably to organic loan production of $110 million and $143 million during the first six months of 2014 and 2013, respectively. While organic loan production has been strong, we experienced higher levels of unscheduled loan payoffs in the second quarter 2015 as borrowers used improving cash flows to pay off loans, or sold the underlying properties and used the cash proceeds to pay off loans. As a result, total loans declined this quarter notwithstanding our steadily improving loan production. To fund the increasing loan production, we are very pleased that our core deposits also showed steady growth over the past three quarters and year-over-year.”

Highlights for the second quarter 2015 are summarized as follows, and the discussion of the Company’s results of operations and financial condition, including a reconciliation of non-GAAP performance measures to GAAP performance measures, is supplemented by the accompanying financial tables.

 

 

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“We are pleased with our financial results for the second quarter and first six months of 2015, and are excited about our prospects for the future as we prepare to consummate our proposed merger with United after the special shareholder meeting in August. The proposed merger with United is a strategic combination that we believe is a financially attractive combination that accelerates our growth in Upstate South Carolina,” continued Erwin. “We are excited to partner with United to provide enhanced value to our shareholders, customers, teammates and communities. United has long prided itself on its strong commitment to the client, a model that we know well. United’s strong community bank culture, sound financial condition, earnings growth, and comprehensive business expertise make United an excellent choice for Palmetto to join.”

About The Palmetto Bank: Headquartered in Greenville, South Carolina, The Palmetto Bank is a 108-year old community bank and is the third largest banking institution headquartered in South Carolina. The Palmetto Bank has assets of $1.2 billion and serves the Upstate of South Carolina through 25 branch locations in nine counties along the economically attractive I-85 corridor, as well as 24/7/365 service through online and mobile banking, ATMs and telephone. The Bank has a unique understanding of the Upstate market and delivers local decision making with greater responsiveness. Through its Retail, Commercial and Wealth Management businesses, the Bank specializes in providing financial solutions to consumers and small to mid-size businesses with deposit and cash management products, loans (including consumer, mortgage, credit card, automobile, Small Business Administration, commercial, and corporate), lines of credit, trust, brokerage, private banking, financial planning and insurance. The Bank provides 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.com or on Facebook.

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Addendum to News Release – Forward-Looking Statements

Certain statements in this News Release 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; (3) actions taken by banking regulatory agencies related to the banking industry in general and the Company or the Bank specifically; (4) the occurrence of any event, change or other circumstances that could give rise to the termination of the definitive merger agreement between the Company and United; (5) the outcome of any legal proceedings that may be instituted against the Company or United; and (6) the inability to complete the transactions contemplated by the definitive merger agreement with United due to the failure to satisfy each transaction’s respective conditions to completion, including the receipt of regulatory and shareholder approvals required for the consummation of the proposed transactions. 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.

 

 

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Additional Information

United filed a registration statement on Form S-4, as amended, with the Securities and Exchange Commission that was declared effective by the Securities and Exchange Commission on July 10, 2015 to register the shares of United’s common stock that will be issued to the Company’s shareholders in connection with the transaction. The registration statement includes a proxy statement/prospectus and other relevant materials in connection with the proposed merger transaction involving United and the Company. The proxy statement/prospectus was mailed to the Company’s shareholders on or about July 13, 2015. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT, PROXY/PROSPECTUS (AND ANY OTHER DOCUMENTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION IN CONNECTION WITH THE TRANSACTION OR INCORPORATED BY REFERENCE INTO THE PROXY STATEMENT/PROSPECTUS) BECAUSE SUCH DOCUMENTS CONTAIN IMPORTANT INFORMATION REGARDING THE PROPOSED MERGER TRANSACTION. Investors and security holders may obtain free copies of these documents and other documents filed with the Securities and Exchange Commission on its website at http://www.sec.gov. Investors and security holders may also obtain free copies of the documents filed with the Securities and Exchange Commission by United on its website at http://www.ucbi.com and by the Company on its website at http://www.palmettobank.com.

Participants in the Merger Solicitation

United and the Company, and certain of their respective directors, executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies from the shareholders of the Company in respect of the proposed merger transaction. Information regarding the directors and executive officers of United and the Company and other persons who may be deemed participants in the solicitation of the shareholders of the Company in connection with the proposed transaction is included in the proxy statement/prospectus for the Company’s special meeting of shareholders which was mailed to the Company’s shareholders on or about July 13, 2015. Information about United’s directors and executive officers can also be found in United’s definitive proxy statement in connection with its 2015 annual meeting of shareholders, as filed with the Securities and Exchange Commission on March 31, 2015, and other documents subsequently filed by United with the Securities and Exchange Commission. Information about the Company’s directors and executive officers can also be found in the Company’s definitive proxy statement in connection with its 2015 annual meeting of shareholders, as filed with the Securities and Exchange Commission on April 1, 2015, and other documents subsequently filed by the Company with the Securities and Exchange Commission. Additional information regarding the interests of such participants is included in the proxy statement/prospectus and other relevant documents regarding the proposed merger transaction filed with the Securities and Exchange Commission.

 

 

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Palmetto Bancshares, Inc. and Subsidiary

Consolidated Balance Sheets

(dollars in thousands, except per share data)

(unaudited)

Palmetto Bancshares, Inc. and Subsidiary

Composition of Loans Held for Investment

(dollars in thousands)

(unaudited)

Palmetto Bancshares, Inc. and Subsidiary

Consolidated Statements of Income

(dollars in thousands, except per share data)

(unaudited)