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): October 4, 2010

Palmetto Bancshares, Inc.

(Exact name of registrant as specified in its charter)

South Carolina	0-26016	74-2235055
State or other jurisdiction of incorporation	Commission File Number	IRS Employer I.D. number
306 East North Street, Greenville, South Carolina		29601
Address of principal executive offices		Zip Code

800.725.2265

Registrant’s telephone number

N/A

(Former Name or Former Address, if Changed Since Last Report

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))

SECTION 5 – CORPORATE GOVERNANCE AND MANAGEMENT

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

(b) Greenville, South Carolina – On October 4, 2010, The Palmetto Bank (a wholly owned subsidiary of Palmetto Bancshares, Inc.) announced that George A. Douglas (“Andy”) will assume a new role as the Wealth Management Executive of the Bank effective October 18, 2010. Previously, Mr. Douglas served as the Retail Banking Executive. The News Release issued on October 5, 2010 is attached as Exhibit 99.1.

SECTION 9 – FINANCIAL STATEMENTS AND EXHIBITS

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

Item	Exhibit
99.1	News Release dated October 5, 2010

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 hereunto duly authorized.

PALMETTO BANCSHARES, INC.

By:

/s/ Samuel L. Erwin

Samuel L. Erwin

Chief Executive Officer

Date: October 6, 2010

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE	For More Information Contact:
October 5, 2010	Cynthia Jamison-Brashier: (864) 250-6061
	cjamison@palmettobank.com

The Palmetto Bank Hires Retail Banking Executive

The Bank also to Expand its Wealth Management Business

Greenville, S.C. – The Palmetto Bank announced today that Tricia (Trish) P. Springfield has been hired as the Retail Banking Executive with overall responsibility for all retail banking activities. In this senior management role, Mrs. Springfield’s responsibilities will include all loan and deposit products and services provided to retail customers primarily through the Bank’s 29 branches. Mrs. Springfield will also have overall lending responsibility for residential mortgage, credit card, and indirect automobile, as well as small business lending and merchant services to commercial customers. Mrs. Springfield will begin her role with the Bank on October 18.

“We are absolutely thrilled to have someone of Trish’s caliber and experience to join our team,” said Samuel L. Erwin, President and Chief Executive Officer. “Trish clearly understands the needs of retail consumers and she has extensive relationships in our markets. Her career experiences bring to bear a professional retail perspective through her rare combination of retail sales, service, marketing, coaching, consulting, and training over the past seventeen years in the banking industry.”

Mrs. Springfield most recently served over four years as the Director of Retail Banking for a large regional bank headquartered in Greenville. Previously, she held the positions of Regional Banking Manager, Director of Business Development, and Marketing Product Manager with various regional banks, as well as five years of experience leading the national Sales and Consulting teams for NCBS, a Retail Banking consulting firm working with domestic and international banks, credit unions and retail stores. Mrs. Springfield is also a frequent instructor at various banking schools, including the South Carolina Banking School.

The Bank also announced that Andy Douglas has been tapped to expand the Bank’s existing trust and investments division into a comprehensive wealth management business. “Over his 17 year career at The Palmetto Bank, Andy has developed deep and long-standing relationships with our customers and community leaders in South Carolina,” continued Erwin. “Andy is a consummate banking professional and a seasoned veteran at the Bank. As a result, he is the ideal candidate to lead this strategically important initiative for the Bank. We are counting on his continued leadership to build on the rich heritage of our long-standing and historically successful trust and investments business to take it to the next level.”

Currently, the Bank provides trust, investment, insurance and brokerage services through a combination of in-house employees and an agreement with Raymond James Financial Services, Inc. As part of its mission to serving as a trusted financial advisor to its clients, the Bank plans to expand its current offerings to include private banking and other services to provide more complete financial advice to its clients.

About The Palmetto Bank

Headquartered in Greenville, South Carolina, The Palmetto Bank is a 104-year old independent state-chartered commercial bank and is the fifth-largest banking institution headquartered in South Carolina. The Palmetto Bank has assets of $1.4 billion and serves the Upstate through 29 banking locations in Abbeville, Anderson, Cherokee, Greenville, Greenwood, Laurens, Oconee, Pickens, Spartanburg and York counties. The Bank specializes in providing personalized community banking services to individuals and small to mid-size businesses including Retail and Commercial Banking, Mortgage, Trust, Brokerage, and Insurance. Additional information may be found at the Company’s web site at www.palmettobank.com.