<ARTICLE>                                            9
<LEGEND>
The schedule contains summary financial information extracted from Palmetto
Bancshares, Inc. and subsidiary Consolidated Income Statements and Consolidated
Balance Sheets and is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<MULTIPLIER>                                   1,000
       
                             
<PERIOD-TYPE>                    6-MOS
<FISCAL-YEAR-END>                DEC-31-1998
<PERIOD-END>                     JUN-30-1998         
<CASH>                                31,751    
<INT-BEARING-DEPOSITS>                     0    
<FED-FUNDS-SOLD>                         570    
<TRADING-ASSETS>                           0    
<INVESTMENTS-HELD-FOR-SALE>           28,864    
<INVESTMENTS-CARRYING>                74,653    
<INVESTMENTS-MARKET>                  76,211    
<LOANS>                              387,371    
<ALLOWANCE>                           (5,386)   
<TOTAL-ASSETS>                       548,208    
<DEPOSITS>                           473,348    
<SHORT-TERM>                          33,248    
<LIABILITIES-OTHER>                    2,566    
<LONG-TERM>                                0    
<PREFERRED-MANDATORY>                      0    
<PREFERRED>                                0    
<COMMON>                              15,449    
<OTHER-SE>                            18,787    
<TOTAL-LIABILITIES-AND-EQUITY>       548,208    
<INTEREST-LOAN>                       16,934    
<INTEREST-INVEST>                      2,895    
<INTEREST-OTHER>                         190    
<INTEREST-TOTAL>                      20,019    
<INTEREST-DEPOSIT>                     7,530    
<INTEREST-EXPENSE>                     8,169    
<INTEREST-INCOME-NET>                 11,850    
<LOAN-LOSSES>                            842    
<SECURITIES-GAINS>                         0    
<EXPENSE-OTHER>                        9,567    
<INCOME-PRETAX>                        4,553    
<INCOME-PRE-EXTRAORDINARY>             3,160    
<EXTRAORDINARY>                            0    
<CHANGES>                                  0    
<NET-INCOME>                           3,160    
<EPS-PRIMARY>                           0.76    
<EPS-DILUTED>                           0.74    
<YIELD-ACTUAL>                          4.91    
<LOANS-NON>                            1,664    
<LOANS-PAST>                             107    
<LOANS-TROUBLED>                           0    
<LOANS-PROBLEM>                            0    
<ALLOWANCE-OPEN>                       5,152    
<CHARGE-OFFS>                           (684)   
<RECOVERIES>                              76    
<ALLOWANCE-CLOSE>                      5,386    
<ALLOWANCE-DOMESTIC>                       0    
<ALLOWANCE-FOREIGN>                        0    
<ALLOWANCE-UNALLOCATED>                    0