Exhibit 99.1

Message to Shareholders

Message to Shareholders

Greer Bancshares Incorporated

May 20, 2011

Dear Shareholders and Friends:

For the quarter ended March 31, 2011, Greer Bancshares Incorporated reported a net loss of $(39,000) before TARP-related expenses of $164,000, resulting in a net loss attributable to common shareholders of $(203,000) or $(0.08) per diluted common share.

The major factor leading to the net loss in the first quarter was a negative valuation allowance of $657,000 resulting from updated appraisals on foreclosed real estate. The Bank also added $100,000 to its loan loss provision in the first quarter, bringing the loan loss reserves up to $7,486,000 or 2.90% of total loans at March 31, 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 first quarter also increased the loan loss reserves relative to total loans outstanding.

Non-performing assets have decreased to $26,508,000 as of March 31, 2011, from $27,743,000 at year-end 2010. Given the negative impact of non-performing loans on the operating results and financial condition of the company, we have developed and implemented an aggressive plan for reducing non-performing loans. Improvement in this area should increase net income by reducing expenses for loan collection and valuation adjustments associated with new or updated appraisals on collateral secured loans.

Net interest income and non-interest income levels for the three months ended March 31, 2011 have declined slightly compared to the same period in 2010, due primarily to reductions in total assets. The Bank has been successful in reducing non-core funding levels as total long-term borrowings have been reduced by nearly $13 million through March 31, 2011 in comparison to the year ended December 31, 2010.

As of March 31, 2011:

Recent trends in the Bank’s past dues and non-performing loans indicate our loan portfolio is stabilizing. We are diligently working past due loans and non-performing loans, attempting to help customers bring their accounts current and thereby reduce our collection and legal expenses associated with delinquent or non-performing loans.

The Bank continues to exceed minimum regulatory capital requirements and management is pursuing 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 properly aligned.

We sincerely thank you for your past support, patience and understanding which we do not take for granted. We are mindful that you have also been personally affected by this prolonged period of economic difficulty and our Bank’s poor performance. We are optimistic that this year will be the turning point for an improved economy, job market, and real estate values which should create a more favorable operating environment for the banking industry and Greer State Bank.

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

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CONSOLIDATED

BALANCE SHEET

As of March 31, 2011

Unaudited

Dollars in thousands, except per share data

CONSOLIDATED

STATEMENTS OF LOSS

As of March 31, 2011 Unaudited

Dollars in thousands, except per share data

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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 Poinsett 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