Exhibit 3.2.3


                              AMENDMENT TO BY-LAWS
                                       OF
                            PALMETTO BANCSHARES, INC.
                            ADOPTED JANUARY 19, 1999


       Article II.Shareholders is hereby amended by adding the following new
Section 2.4 (e):

                  2.4 (e) Notice of Shareholder Proposals. Any shareholder
                  desiring to submit a proposal to an annual or special meeting
                  of shareholders shall submit information regarding the
                  proposal, together with the proposal, to the corporation at
                  least 45 days prior to the shareholders meeting at which such
                  proposal is to be presented.