8-K/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 8-K/Amendment No. 1

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 11, 2008

Palmetto Bancshares, Inc. (Exact name of registrant as specified in charter)
South Carolina	0-26016		74-2235055
State or other jurisdiction of incorporation	Commission File Number	IRS Employer I.D. number
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))

INFORMATION TO BE INCLUDED IN THE REPORT

EXPLANATORY NOTE

On January 15, 2008, Palmetto Bancshares, Inc. filed a Form 8-K to announce the issuance of a press release that disclosed the results of operations and financial condition of the Company for the three and twelve month periods ended December 31, 2007. Ralph M. Burns, III is Executive Vice President of the Registrant’s subsidiary but serves as Treasurer of the Registrant.  We are filing this Form 8-K/A in order to correct a scrivener's error relating to Mr. Burns' title under his signature below.

No other changes have been made to the original Form 8-K or to the press release attached as Exhibit 99.1, as previously filed.

Item 2.02.  Results of Operations and Financial Condition.

On January 11, 2008, Palmetto Bancshares, Inc. issued a press release that disclosed the results of operations and financial condition of the Company for the three and twelve month periods ended December 31, 2007.

For more information regarding this matter, see the press release attached hereto as Exhibit 99.1.

Item 9.01.      Financial Statements and Exhibits

(d) Exhibits

99.1            Press Release issued January 11, 2008.

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/ Ralph M. Burns, III                         

 Ralph M. Burns, III

 Treasurer

Dated: January 17, 2008

EX-99.1

FOR IMMEDIATE RELEASE
January 11, 2008 For More Information Contact:
Cynthia Jamison, (864) 984-8395
cjamison@palmettobank.com

PALMETTO BANCSHARES, INC.

REPORTS RECORD YEAR

UPSTATE, SC – L. Leon Patterson, chairman and chief executive officer of Palmetto Bancshares, Inc., parent company of The Palmetto Bank, reported net income for the year ended December 31, 2007, of $16.0 million, up 5.1% over the previous year.  Net income per diluted share reached $2.47, up 4.2% over the previous year’s record earnings of $2.37 per diluted share. Total assets were $1.2 billion at year-end 2007, up 8.2% or $95.0 million over year-end 2006. Shareholders’ equity ended the year at $110.3 million, a 9.8% increase over year-end 2006. The year 2007 marked the twenty-fourth consecutive year in which Palmetto Bancshares, Inc. has increased the payment of dividends to shareholders. Cash dividends totaled $0.77 per share in 2007 compared with $0.73 per share in 2006, an increase of 5.5%. For the year ended December 31, 2007, Palmetto Bancshares, Inc. produced a 15.02% return on shareholders’ equity and a 1.35% return on assets.

Net income for the quarter ended December 31, 2007, was $4.3 million, a 5.8% increase over net income for the same three months of 2006. Net income per diluted share for the fourth quarter was $0.66, a 4.8% increase over $0.63 per share reported for the fourth quarter of 2006.

Total loans at December 31, 2007, increased 10.8% over the prior year to $1.05 billion, while total deposits reached $1.1 billion, a 6.6% increase over year end 2006. The Palmetto Bank reported total assets under management (including mortgage servicing and trust and investment group assets) of $2.1 billion as compared with $1.9 billion reported at the close 2006.

About The Palmetto Bank

Celebrating more than 100 years of service in the Upstate, The Palmetto Bank manages $2.1 billion in assets including Commercial Banking, Trust, Brokerage and Mortgage Servicing.  The Palmetto Bank is the fifth largest independent state-chartered commercial bank in South Carolina with 32 locations throughout the Upstate counties of Abbeville, Anderson, Cherokee, Greenville, Greenwood, Laurens, Oconee, Pickens and Spartanburg.