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 21, 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 April 21, 2005, Palmetto Bancshares, Inc. issued a press release which
discloses the results of operations and financial condition of the Company for
the first quarter ended March 31, 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   Press Release issued April 21, 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
Palmetto Bancshares, Inc.


/s/ Paul W. Stringer
--------------------------------
Paul W. Stringer
Chairman and Chief Executive Officer
The Palmetto Bank


Date:  April 21, 2005