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<title>Palmetto Bancshares Inc. Form 8-K</title>


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<p style='text-align:center'><font face="Arial" size="2"><b>&nbsp;</b></font></p>
<p style='text-align:center'><font face="Arial" size="2"><b>&nbsp;</b></font></p>









<p style='text-align:center'><font face="Arial" size="2"><b>UNITED STATES<br>
SECURITIES AND EXCHANGE COMMISSION<br>
Washington, D. C. 20549</b></font></p><p
style='text-align:center'><font face="Arial" size="2"><b>&nbsp;FORM 8-K</b></font></p>
<p
style='text-align:center'><font face="Arial" size="2"><b>CURRENT REPORT</b></font></p>
<p
style='text-align:center'><font face="Arial" size="2"><b>Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</b></font></p>
<p
style='text-align:center'><font face="Arial" size="2">Date of Report (Date of earliest event reported): <b>June 20, 2006</b>
</font></p><p
style='text-align:center'><font face="Arial" size="2"><b>Palmetto Bancshares, Inc.<br>
</b>(Exact name of registrant as specified in charter)</font></p><p>&nbsp;</p>
<p><font face="Arial" size="2">&nbsp; </font></p>
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			<td width="315" align="center"><font face="Arial" size="2"> <b>South Carolina</b></font></td>
			<td align="center" width="249"> <b><font face="Arial" size="2">0-26016</font></b></td>
			<td align="center"><font face="Arial" size="2"> <b>74-2235055</b></font></td>
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			<td width="315" align="center"><font face="Arial" size="2">------------------&nbsp;</font></td>
			<td align="center" width="249"><font face="Arial" size="2">-----------------</font></td>
			<td align="center"><font face="Arial" size="2">&nbsp;---------------</font></td>
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			<td width="315" align="center"><font face="Arial" size="2">&nbsp; State or other&nbsp;</font></td>
			<td align="center" width="249"><font face="Arial" size="2">Commission File Number</font></td>
			<td align="center"><font face="Arial" size="2">IRS Employer </font>
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			<td width="315" align="center"><font face="Arial" size="2">&nbsp;jurisdiction of&nbsp;Identificationincorporation or</font></td>
			<td align="center" width="249">&nbsp;</td>
			<td align="center"><font face="Arial" size="2">Number</font></td>
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			<td width="315" align="center"><font face="Arial" size="2">&nbsp; organization</font></td>
			<td align="center" width="249">&nbsp;</td>
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<p style='text-align:center'><font face="Arial" size="2"><b>301 Hillcrest Drive, Laurens, South Carolina, 29360<br>
</b>--------------------------------------------&nbsp;<br>
Address of principal executive offices, including zip code</font></p>
<p style='text-align:center'><font face="Arial" size="2"><b>(864) 984-4551<br>
</b>--------------<br>
Registrant's telephone number</font></p><p style="text-indent: 0.5in">
<font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp; Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):</font></p>
<p style="text-indent: 0.5in"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp; [&nbsp; ]&nbsp; Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></p>
<p style="text-indent: 0.5in"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp; [&nbsp; ]&nbsp; Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></p>
<p style="text-indent: 0.5in"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp; [&nbsp; ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</font></p>
<p style="text-indent: 0.5in"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp; [&nbsp; ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></p>
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<p><font face="Arial" size="2"><b>Item 5.02. Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers.</b></font></p>

<p style='text-autospace:none'><font face="Arial" size="2">(d) &nbsp; At the June 20, 2006 meeting of the Board of
Directors of Palmetto Bancshares, Inc., Mr. Lester Stewart Spinks was appointed
to serve as a Director. This election fills a Board vacancy resulting from a
Director's departure during the first quarter of 2005.
<strong style="font-weight: 400">Although it is anticipated that
Mr. Spinks will serve on one or more committees of the Board, his committee
membership has not yet been determined.&nbsp; No </strong>arrangements or
understandings exist between Mr. Spinks and any other persons pursuant to which
Mr. Spinks was appointed as a Director. Additionally, Mr. Spinks has no transactions with
management or others as outlined in Item 404(a) of Regulation S-K.</font></p>

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<p style='text-align:center'><font face="Arial" size="2"><b>SIGNATURES</b></font></p>
<p
style='text-align:center'>&nbsp;</p><p><font face="Arial" size="2">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.</font></p>
<p>&nbsp;</p><p><font face="Arial" size="2">PALMETTO BANCSHARES, INC.</font></p>
<p>&nbsp;</p><p><font face="Arial" size="2">By:</font></p><p>
<font face="Arial" size="2">/s/ L. Leon Patterson<br>
---------------------------------<br>
L. Leon Patterson<br>
Chairman and Chief Executive Officer</font></p><p>&nbsp;</p><p>
<font face="Arial" size="2">/s/ Paul W. Stringer<br>
---------------------------------<br>
Paul W. Stringer<br>
President and Chief Operating Officer<br>
(Chief Accounting Officer)</font></p><p>&nbsp;</p><p>&nbsp;</p><p>
<font face="Arial" size="2">Date:&nbsp;&nbsp; June 22, 2006</font></p><p>&nbsp;</p>
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{"company-data": {"conformed-name": "PALMETTO BANCSHARES INC", "cik": "0000706874", "assigned-sic": "6022", "irs-number": "742235055", "state-of-incorporation": "SC", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-26016", "film-number": "06918780"}, "business-address": {"street1": "301 HILLCREST DR", "street2": "P O BOX 49", "city": "LAURENS", "state": "SC", "zip": "29360", "phone": "8649844551"}}
Palmetto Bancshares Inc. Form 8-K
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):
June 20, 2006
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 Identificationincorporation or
Number
organization
301 Hillcrest Drive, Laurens, South Carolina, 29360
--------------------------------------------
Address of principal executive offices, including zip code
(864) 984-4551
--------------
Registrant's telephone number
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 5.02. Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers.
(d)   At the June 20, 2006 meeting of the Board of
Directors of Palmetto Bancshares, Inc., Mr. Lester Stewart Spinks was appointed
to serve as a Director. This election fills a Board vacancy resulting from a
Director's departure during the first quarter of 2005.
Although it is anticipated that
Mr. Spinks will serve on one or more committees of the Board, his committee
membership has not yet been determined.  No
arrangements or
understandings exist between Mr. Spinks and any other persons pursuant to which
Mr. Spinks was appointed as a Director. Additionally, Mr. Spinks has no transactions with
management or others as outlined in Item 404(a) of Regulation S-K.
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:   June 22, 2006