-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, RC14y48XKNvAlSOxRgr1Fb0hxcylBGewlR3QBt21ldsD1ePexP0F2CrTqtZ4Guel oETItG5tyGA+figXocsP3g== 0001019892-05-000187.txt : 20050808 0001019892-05-000187.hdr.sgml : 20050808 20050808155826 ACCESSION NUMBER: 0001019892-05-000187 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050802 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050808 DATE AS OF CHANGE: 20050808 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PALMETTO BANCSHARES INC CENTRAL INDEX KEY: 0000706874 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 742235055 STATE OF INCORPORATION: SC FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-26016 FILM NUMBER: 051006018 BUSINESS ADDRESS: STREET 1: 301 HILLCREST DR STREET 2: P O BOX 49 CITY: LAURENS STATE: SC ZIP: 29360 BUSINESS PHONE: 8649844551 8-K 1 form8k-08022005.txt REPORT DATED AUGUST 2, 2005 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): August 2, 2005 PALMETTO BANCSHARES, INC. (Exact name of registrant as specified in charter) South Carolina 0-26016 74-2235055 - --------------------------- ----------------- ----------------------- State or other jurisdiction Commission File Number IRS Employer I.D. number of incorporation 301 Hillcrest Drive, Laurens, South Carolina 29360 - -------------------------------------------- ----- Address of principal executive offices Zip Code (864) 984-4551 -------------- Registrant's telephone number Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On August 2, 2005, Palmetto Bancshares, Inc. mailed to shareholders its quarterly shareholder earnings overview which discloses the results of operations and financial condition of the Company for the second quarter ended June 30, 2005. For more information regarding this matter, see the shareholder earnings overview attached hereto as Exhibit 99. ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits 99 Shareholder report mailed August 2, 2005 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. PALMETTO BANCSHARES, INC. By: /s/ L. Leon Patterson - ----------------------------------------- L. Leon Patterson Chairman and Chief Executive Officer /s/ Paul W. Stringer - ----------------------------------------- Paul W. Stringer Chairman and Chief Operating Officer (Chief Accounting Officer) Date: August 8, 2005 EX-99 2 shareholder-mailing.txt SHAREHOLDER MAILING PALMETTO BANCSHARES, INC. [LOGO OMITTED] P.O. Box 49, Laurens, SC 29360 www.palmettobank.com - ------------------------------------ 2nd Quarter Report 2005 - ------------------------------------ SELECTED FINANCIAL RATIOS As of and for the six months ended June 30, 2005 2004 (unaudited) SIGNIFICANT OPERATING RATIOS BASED ON EARNINGS Return on average assets 1.37 % 1.30 Return on average equity 16.80 15.74 Net interest margin 4.69 4.66 Efficiency ratio 61.07 62.69 SIGNIFICANT CAPITAL RATIOS Average equity to average assets 8.13 % 8.26 Equity to assets at period end 8.10 7.93 Tier 1 risk based capital 9.26 9.43 Total risk based capital 10.18 10.49 Tier 1 leverage ratio 7.76 7.76 SIGNIFICANT CREDIT QUALITY RATIOS Nonaccrual loans to total assets 0.22 % 0.32 Net charge-offs to average loans less mortgage loans held for sale 0.19 0.28 BANK NOTES - -------------------------------------------------------------------------------- NEW OFFICER APPOINTMENTS The Palmetto Bank has announced the following new officer appointments: Peter J. Baldwin has joined The Palmetto Bank as Vice President, Commercial Loan Officer and is located at the Fountain Inn branch. Peter is a graduate of Clemson University and has nine years of banking experience in commercial lending. Dixon B. Bryan, Jr. was appointed to Branch Manager and Loan Officer of the South Main office. He is a graduate of Lander University and has eleven years of banking experience in branch management. Valerie W. Stevenson has joined The Palmetto Bank as Vice President, Chief Auditor and Risk Manager. Valerie is a Clemson University graduate with 12 years experience in accounting and internal auditing in the banking industry. Robert (Bob) A. Toggweiler was appointed to Vice President, Seneca. He is a graduate of both the University of South Florida and the Florida School of Banking. Bob has 29 years experience in commercial lending, business development and branch management. To Our Shareholders: We are very pleased to share mid-year and 2nd quarter operating results for Palmetto Bancshares, Inc. It was an exceptional period of profitability and growth for your company characterized by: - ---Solid market share growth across the Upstate in all of our 31 retail locations, - ---Double-digit earnings per share growth, - ---Double-digit dividends per share growth, - ---Double-digit loan growth, - ---Double-digit growth in retail core deposits, - ---Strong credit quality and improved profitability ratios. All in all, the Company made significant progress toward achieving our vision of being recognized as Upstate South Carolina's premier independent community banking organization. Profitability for the second quarter 2005 was excellent with net income of $3.5 million, a 27% increase over $2.8 million earned for the second quarter 2004. On a diluted basis earnings per share increased 28% to $0.55 compared with $0.43 per diluted share for the second quarter 2004. Profitability ratios improved with a return on average assets of 1.37% and a return on average shareholders' equity of 16.80% as of June 30, 2005. A cash dividend payment of $0.16 per share also reflects excellent profitability results for the second quarter. While equity markets continued to show mixed results - mostly weak performance - in the second quarter, we are pleased that recent trades, of which Management is aware, for Palmetto Bancshares, Inc. common stock beginning the third quarter were in the $34.00 range, a good increase for year to date. For the six month period ended June 30, 2005, we continue to exceed annual profit projections, posting six month net income of $7.0 million compared to $5.8 million at the end of six months in 2004. Net income per diluted share for the six month period ended June 30, 2005 was $1.08 compared with $0.91 in the same period for 2004. Second quarter and six months profitability was assisted by increases in net interest income of 18% and 15%, respectively, over the same periods in 2004. The balance sheet management of assets and liabilities has allowed us to achieve an improved net interest margin in the first six months compared with 2004. Additionally, six months net interest income was boosted by a 7% increase in total loan volume over the first six months of 2004. Total assets at June 30, 2005 stood at an all time high of $1.05 billion, a 12% increase over above mid-year 2004. The increase is primarily due to growth of $109 million in the loan portfolio over the last 12 months. Credit quality continues to be excellent through the first six months and further reductions in the loan loss provision enhanced line results. Nonperforming loans to total loans declined to 0.28% at June 30, 2005 compared to 0.42% for the same period in 2004. Net charged-off loans through the first six months were running at a rate of 0.19% compared to 0.28% for the same period in 2004. We continue to emphasize the importance of a strong positive credit culture to building superior bottom line results. All across our Upstate market, in all of our retail locations, we continue to see good growth in core deposits. The acquisition of these deposits is absolutely essential to our future growth. Building retail deposit market share is one of our highest priorities. Satisfying all our customers' financial needs and helping them to succeed financially is at the center of our strategic planning process. The addition of the new Easley Office is central and core to this strategy. Plans are being developed for the third quarter opening of this new facility. The reception of the Easley community to our planning thus far has been overwhelmingly positive. We look forward to becoming a strong positive influence in this growing Upstate community. All in all, we remain optimistic about the remainder of 2005. The first six months' results have been excellent. This is due, without question, to a truly exceptional team effort from all of our employees. We are also mindful of your supporting role as shareholders. Our job is to enhance shareholder value for you. Whatever you can do on behalf of your company can also make a difference to our bottom line. We hope you will think Palmetto whenever an opportunity might arise for us to serve. Thank you for your continued loyalty and support. Sincerely, /s/ L. Leon Patterson L. Leon Patterson Chairman and Chief Executive Officer
Consolidated Balance Sheets (in thousands, except share data) June 30, 2005 2004 ------ ------ (unaudited) ASSETS Cash and due from banks $ 37,635 25,802 Federal funds sold 7,260 1,338 ---------- --------- Total cash and cash equivalents 44,895 27,140 Federal Home Loan Bank (FHLB) stock, at cost 5,339 2,122 Investment securities available for sale, at fair market value 134,121 152,209 Mortgage loans held for sale 4,889 4,033 Loans 826,802 719,043 Less allowance for loan losses (8,051) (7,983) ---------- --------- Loans, net 818,751 711,060 Premises and equipment, net 22,527 22,488 Accrued interest receivable 4,598 4,105 Other assets 16,882 17,150 ---------- --------- Total assets $1,052,002 940,307 ========== ========= LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Deposits Noninterest-bearing $ 130,702 122,463 Interest-bearing 729,029 662,395 ---------- --------- Total deposits 859,731 784,858 Retail repurchase agreements 19,130 18,790 Commercial paper (Master notes) 17,701 15,197 Federal funds purchased - 13,286 FHLB borrowings 65,400 30,000 Other liabilities 4,826 3,621 ---------- --------- Total liabilities 966,788 865,752 ---------- --------- Shareholders' Equity Common stock - par value $5.00 per share; authorized 10,000,000 shares; issued and outstanding 6,317,285 and 6,269,535 at June 30, 2005 and June 30, 2004, respectively. 31,586 31,348 Capital surplus 596 298 Retained earnings 52,861 43,525 Accumulated other comprehensive income (loss), net of tax 171 (616) ---------- --------- Total shareholders' equity 85,214 74,555 ---------- --------- Total liabilities and shareholders' equity $1,052,002 940,307 ========== ========= ASSETS UNDER MANAGEMENT Palmetto Bancshares, Inc. and subsidiary $1,023,690 940,307 Trust 265,874 259,327 Investment 146,427 131,092 Mortgage loans serviced for others 294,074 269,602 ---------- --------- Total assets under management $1,730,065 1,600,328 ========== =========
Consolidated Statements of Income (in thousands, except share data) For the three months For the six months ended ended June 30, June 30, 2005 2004 2005 2004 ------ ------ ------ ------ (unaudited) (unaudited) Interest income Interest and fees on loans $ 14,099 11,232 26,990 22,503 Interest and dividends on investment securities available for sale 1,305 1,013 2,639 1,969 Interest on federal funds sold 34 14 55 29 Dividends on FHLB stock 59 20 102 39 -------- ------- ------- ------- Total interest income 15,497 12,279 29,786 24,540 Interest expense Interest on deposits including retail repurchase agreement 3,445 2,413 6,533 4,893 Interest on securities sold under agreements to repurchase and reverse repurchase agreements - 32 - 32 Interest on federal funds purchased 40 12 65 31 Interest on FHLB advances 365 45 662 45 Interest on commercial paper (Master notes) 93 22 159 45 -------- ------- ------- ------- Total interest expense 3,943 2,524 7,419 5,046 -------- ------- ------- ------- Net interest income 11,554 9,755 22,367 19,494 Provision for loan losses 600 750 1,200 1,500 -------- ------- ------- ------- Net interest income after provision for loan losses 10,954 9,005 21,167 17,994 Noninterest income Service charges on deposit accounts 1,992 2,197 3,839 4,280 Net fees for trust and brokerage services 706 768 1,458 1,438 Mortgage banking income 474 161 756 326 Investment securities gains 15 - 69 108 Other 788 726 1,566 1,421 -------- ------- ------- ------- Total noninterest income 3,975 3,852 7,688 7,573 Noninterest expense Salaries and other personnel 5,608 5,049 10,572 9,685 Occupancy 659 598 1,259 1,189 Furniture and equipment 920 855 1,805 1,738 Postage and supplies 315 273 632 594 Marketing and advertising 261 372 523 586 Telephone 183 187 366 369 Professional services 219 226 400 412 Other 1,428 1,194 2,835 2,427 -------- ------- ------- ------- Total noninterest expense 9,593 8,754 18,392 17,000 -------- ------- ------- ------- Net income before income taxes 5,336 4,103 10,463 8,567 Provision for income taxes 1,788 1,306 3,505 2,741 -------- ------- ------- ------- Net income $ 3,548 2,797 6,958 5,826 ======== ======= ======= ======= Share Data Net income - basic $ 0.56 0.45 1.10 0.93 Net income - diluted 0.55 0.43 1.08 0.91 Cash dividends 0.16 0.14 0.32 0.28 Book value 13.49 11.89 13.49 11.89 Weighted average common shares outstanding - basic 6,314,043 6,266,931 6,311,798 6,265,500 Weighted average common shares outstanding - diluted 6,420,995 6,381,267 6,418,417 6,379,006
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