<ARTICLE> 9
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
PALMETTO BANCSHARES, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS
OF OPERATIONS AND CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-END>                               JUN-30-1996
<CASH>                                          31,821
<INT-BEARING-DEPOSITS>                               0
<FED-FUNDS-SOLD>                                   863
<TRADING-ASSETS>                                     0
<INVESTMENTS-HELD-FOR-SALE>                     18,780
<INVESTMENTS-CARRYING>                          60,989
<INVESTMENTS-MARKET>                            59,978
<LOANS>                                        309,182
<ALLOWANCE>                                    (4,183)
<TOTAL-ASSETS>                                 447,185
<DEPOSITS>                                     389,987
<SHORT-TERM>                                    26,503
<LIABILITIES-OTHER>                              1,925
<LONG-TERM>                                          0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                         5,054
<OTHER-SE>                                      20,615
<TOTAL-LIABILITIES-AND-EQUITY>                 447,185
<INTEREST-LOAN>                                 12,423
<INTEREST-INVEST>                                2,785
<INTEREST-OTHER>                                    57
<INTEREST-TOTAL>                                15,265
<INTEREST-DEPOSIT>                               6,071
<INTEREST-EXPENSE>                               6,631
<INTEREST-INCOME-NET>                            8,633
<LOAN-LOSSES>                                      750
<SECURITIES-GAINS>                                  13
<EXPENSE-OTHER>                                  7,515
<INCOME-PRETAX>                                  2,795
<INCOME-PRE-EXTRAORDINARY>                       2,093
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     2,093
<EPS-PRIMARY>                                     1.94
<EPS-DILUTED>                                     0.00
<YIELD-ACTUAL>                                    4.68
<LOANS-NON>                                        634
<LOANS-PAST>                                         0
<LOANS-TROUBLED>                                     0
<LOANS-PROBLEM>                                      0
<ALLOWANCE-OPEN>                                 3,700
<CHARGE-OFFS>                                    (366)
<RECOVERIES>                                        99
<ALLOWANCE-CLOSE>                                4,183
<ALLOWANCE-DOMESTIC>                                 0
<ALLOWANCE-FOREIGN>                                  0
<ALLOWANCE-UNALLOCATED>                              0