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): July 14, 2003


                            PALMETTO BANCSHARES, INC.
               (Exact name of registrant as specified in charter)


South Carolina                     0-26016                    74-2235055
- ---------------------------    -----------------          --------------------
State or other jurisdiction    Commission File              IRS Employer I.D.
of incorporation                    Number                       Number



301 Hillcrest Drive, Laurens, South Carolina                     29360
- --------------------------------------------                     -----
Address of principal executive offices                          Zip Code


                                 (864) 984-4551
                                 --------------
                          Registrant's telephone number








ITEM 9. REGULATION FD DISCLOSURE

The following is intended to be furnished  pursuant to Item 12,  "Disclosure  of
- --------------------------------------------------------------------------------
Results of Operations and Financial Condition."
- -----------------------------------------------

On July 14, 2003 Palmetto Bancshares,  Inc. announced the results for the second
quarter ended June 30, 2003.

For more  information  regarding  this matter,  see the press  release  attached
hereto as Exhibit 99.

ITEM 7.  FINANCIAL STATEMENTS AND EXHIBITS

(c) Exhibits

    99   Press release dated July 14, 2003



                                   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


/s/      Paul W. Stringer
- ---------------------------------------
 Paul W. Stringer
 President and Chief Operating Officer
(Chief Accounting Officer)

Date:   July 16, 2003