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): January 8, 2004


                            Palmetto Bancshares, Inc.
               (Exact name of registrant as specified in charter)


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



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


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








Item 12. Disclosure of Results of Operations and Financial Condition.


On January 8, 2004 Palmetto Bancshares,  Inc. announced the results for the year
ended December 31, 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 January 8, 2004



                                   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:   January 13, 2004