8-K

                                  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): April 10, 2003


                            PALMETTO BANCSHARES, INC.
               (Exact name of registrant as specified in charter)


South Carolina                    0-26016                    74-2235055
- ------------------------      -----------------       -----------------------
State or other juris-        Commission File Number   IRS Employer I.D. Number
diction of incorporation



301 Hillcrest Drive, Laurens, South Carolina                     29360
- --------------------------------------------                     -----
Address of principal executive offices                         Zip Code


                                 (864) 984-4551
                                 --------------
                          Registrant's telephone number








ITEM 9. REGULATION FD DISCLOSURE

The following is intended to be furnished  pursuant to Item 12,  "Disclosure  of
Results of Operations and Financial Condition."

On April 10, 2003 Palmetto Bancshares,  Inc. announced the results for the first
quarter ended March 31, 2003.

For more  information  regarding  this matter,  see the press  release  attached
hereto as Exhibit 99.

ITEM 7.  FINANCIAL STATEMENTS AND EXHIBITS

(c) Exhibits

    99   Press release dated April 10, 2003



                                   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
     President and Chief Operating Officer
     (Chief Accounting Officer)

Date:   April 17, 2003

EX-99

[Palmetto Bank Logo Omitted]


FOR IMMEDIATE RELEASE                       FOR MORE INFORMATION CONTACT:
APRIL 10, 2003                              PENNY KREIN, 864/984-8395
                                            kreinp@palmettobank.com



             PALMETTO BANCSHARES, INC. REPORTS RECORD FIRST QUARTER

UPSTATE,  SC - Leon Patterson,  chairman and chief executive officer of Palmetto
Bancshares,  Inc., parent company for The Palmetto Bank, reported net income for
the quarter  ending March 31, 2003 of $2.9 million,  an 18.2%  increase over the
same period of 2002.

Net income per share  (diluted)  was $.45,  an 18.4%  increase over the $.38 per
diluted share reported for the first quarter of 2002.

Return on average  shareholders'  equity was 17.01% for the three  months  ended
March 31, 2003,  compared with 16.33% for the end of first quarter 2002.  Return
on average  assets for first quarter 2003 was 1.42%,  up from 1.34% for the same
period of 2002.

Total assets at the end of the first quarter were $853.1 million, an increase of
11.6%, or $88.6 million, over total assets at March 31, 2002.

At March 31, 2003,  total loans increased  15.6% to $657.7 million,  while total
deposits rose to $772.0 million, a 10.7% increase over March 31, 2002.

"We  attribute  the success of the first  quarter to record  asset  growth and a
significant boost from both interest and non-interest income sources, as well as
excellent  overhead  expense  control," said Leon Patterson,  chairman and chief
executive officer.

As The Palmetto Bank, one of the oldest community banks in South Carolina, nears
its one  hundredth  birthday,  we continue  to strive  toward our 2006 vision of
becoming the Upstate's  leading  community  bank.  Founded in 1906, The Palmetto
Bank is an independent  Upstate based financial  institution,  currently with 30
locations in twenty  communities  throughout the Upstate  counties of Abbeville,
Anderson, Cherokee, Greenville, Greenwood, Laurens, Oconee, and Spartanburg.


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(Date Reported: April 10, 2003)