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): November 3, 2003


                            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








ITEM 12. DISCLOSURE OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On  November  3, 2003  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 third quarter ended
September 30, 2003.

For  more  information  regarding  this  matter,  see the  shareholder  earnings
overview attached hereto as Exhibit 99.

ITEM 7.  FINANCIAL STATEMENTS AND EXHIBITS

(c)         Exhibits

            99   Shareholder earnings overview mailed November 3, 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:   November 6, 2003