Exhibit 99

[THE PALMETTO BANK LOGO OMITTED]

FOR IMMEDIATE RELEASE                      FOR MORE INFORMATION, CONTACT:
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April 14, 2004                             Ida Smith, 864/984-8395
                                           ismith@palmettobank.com


PALMETTO BANCSHARES, INC. REPORTS FIRST QUARTER EARNINGS

UPSTATE,  SC - Leon Patterson,  chairman and chief executive officer of PALMETTO
BANCSHARES,  INC., parent company for The Palmetto Bank, reported net income for
the quarter ending March 31, 2004, of $3.0 million,  a 4% increase over the same
period of 2003.

         Net income per share  (diluted)  was $.48, a 7% increase  over the $.45
per diluted share reported for the first quarter of 2003.

         Total assets at the end of the first  quarter were $893.7  million,  an
increase of 5%, or $40.6 million, over total assets at March 31, 2003.

         At March 31, 2004,  total loans increased 8% to $713.4  million,  while
total deposits rose to $813.3 million, a 5% increase over March 31, 2003.

         "During the past  quarter,  The Palmetto  Bank  continued to make great
progress  in a tough  economy  by  simply  holding  to our  vision  of  economic
success," said Leon Patterson, chairman and chief executive officer.

         Founded in 1906, The Palmetto Bank is one of the oldest community banks
in South  Carolina.  The  Palmetto  Bank is an  independent  state  bank with 30
locations  throughout  the Upstate  counties of Abbeville,  Anderson,  Cherokee,
Greenville, Greenwood, Laurens, Oconee, and Spartanburg.

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(Date Reported: April 14, 2004)