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 9, 2004


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


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



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 July 9, 2004 Palmetto Bancshares, Inc. announced the results for the second
quarter ended June 30, 2004.

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 9, 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
Palmetto Bancshares, Inc.


/s/ Paul W. Stringer
- -------------------------------------
Paul W. Stringer
Chairman and Chief Executive Officer
The Palmetto Bank

Date:   July 14, 2004