Exhibit 21.1

Subsidiaries of Palmetto Bancshares, Inc.

   The following table sets forth the subsidiaries of Palmetto Bancshares, Inc.
on December 31, 2001. The common stock of each of these subsidiaries is 100
percent owned by its parent. The financial statements of all subsidiaries are
included in the consolidated statements of Palmetto Bancshares, Inc. and
subsidiaries.

The Palmetto Bank
   Palmetto Capital Inc.