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<title>8-K for Palmetto Bancshares, Inc.</title>


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text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>&nbsp;</b></p>

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text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>&nbsp;</b></p>

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text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>UNITED STATES </b></p>

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text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>SECURITIES AND EXCHANGE
COMMISSION</b></p>

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text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>Washington, D. C. 20549</b></p>

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text-align:center'>&nbsp;</p>

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text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>FORM 8-K</b></p>

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text-align:center'>&nbsp;</p>

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text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>CURRENT REPORT</p>

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text-align:center'>&nbsp;</p>

<p style='margin-top:5.0pt;margin-right:.25in;margin-bottom:5.0pt;margin-left:.25in;font-size:12.0pt;font-family:"Arial";margin-bottom:.0001pt;
text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>Pursuant to Section 13 or
15(d) of the Securities Exchange Act of 1934</p>

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text-align:center'>&nbsp;</p>

<p style='margin-top:5.0pt;margin-right:.25in;margin-bottom:5.0pt;margin-left:.25in;font-size:12.0pt;font-family:"Arial";margin-bottom:.0001pt;
text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>Date of Report (Date of
earliest event reported): March 31, 2009</p>

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text-align:center'>&nbsp;</p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>&nbsp;</p>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Arial";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>Palmetto Bancshares, Inc.</b></p>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Arial";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>(Exact name of registrant as specified in its
  charter)</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Arial";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Arial";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
  <p style='margin-top:5.0pt;margin-right:.25in;margin-bottom:5.0pt;margin-left:.25in;font-size:12.0pt;font-family:"Times New Roman";margin:0in;margin-bottom:.0001pt;
text-align:center'>&nbsp;</p>

<div align="center">

<table class=MsoNormalTable border=0 cellpadding=0 width=640
 style='width:90%;border-collapse:collapse'>
 <tr>
  <td width="35%" valign=top style='padding:0in; '>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Arial";margin-right:-17.05pt; margin-left:0in; margin-top:0in'><u>South
  Carolina&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></p>
  </td>
  <td width="29%" valign=top style='padding:0in; '>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Arial";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><u>&nbsp;&nbsp;&nbsp;&nbsp;
  0-26016&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></p>
  </td>
  <td width="35%" valign=top style='padding:0in; '>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Arial";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  74-2235055</u></p>
  </td>
 </tr>
 <tr>
  <td width="35%" valign=top style='padding:0in; '>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Arial";margin-left:0in; margin-right:0in; margin-top:0in'>State or other
  jurisdiction of incorporation </p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="29%" valign=top style='padding:0in; '>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Arial";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>Commission File Number</p>
  </td>
  <td valign=top style='padding:0in; '>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Arial";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;IRS Employer I.D. number</p>
  </td>
 </tr>
 <tr>
  <td width="35%" valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="29%" valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="35%" valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="35%" valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="29%" valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="35%" valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td colspan=2 valign=top style='padding:0in; '>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Arial";margin-left:0in; margin-right:0in; margin-top:0in'><u>306
	East North Street, Greenville, South Carolina</u></p>
  </td>
  <td width="35%" valign=top style='padding:0in; '>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Arial";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'><u>29601</u></p>
  </td>
 </tr>
 <tr>
  <td colspan=2 valign=top style='padding:0in; '>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Arial";margin-left:0in; margin-right:0in; margin-top:0in'>Address of principal
  executive offices</p>
  </td>
  <td width="35%" valign=top style='padding:0in; '>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Arial";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>Zip Code</p>
  </td>
 </tr>
 <tr>
  <td colspan=3 valign=top style='padding:0in; '>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Arial";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>
	<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Arial";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'> <u>(800)
	725-2265</u></p>
	<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Arial";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>Registrant's telephone number </p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>&nbsp;</p>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Arial";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
	<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; N/A&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u></p>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Arial";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>(Former Name or Former Address, if Changed Since
  Last Report</p>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Arial";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
  </td>
 </tr>
 </table>

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<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Arial";text-align:justify;text-indent:.25in; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Arial";text-align:justify;text-indent:.25in; margin-left:0in; margin-right:0in; margin-top:0in'>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 (<i>see</i> General
Instruction A.2. below):</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.25in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Arial";text-align:justify;text-indent:.25in; margin-left:0in; margin-right:0in; margin-top:0in'>[ ] Written communications pursuant to Rule 425 under
the Securities Act (17 CFR 230.425)</p>

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<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Arial";text-align:justify;text-indent:.25in; margin-left:0in; margin-right:0in; margin-top:0in'>[ ] Soliciting material pursuant to Rule 14a-12 under
the Exchange Act (17 CFR 240.14a-12)</p>

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<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Arial";text-align:justify;text-indent:.25in; margin-left:0in; margin-right:0in; margin-top:0in'>[ ] Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</p>

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<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Arial";text-align:justify;text-indent:.25in; margin-left:0in; margin-right:0in; margin-top:0in'>[ ] Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</p>

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<p style='margin-top:0in;margin-right:0in;margin-bottom:10.4pt;margin-left:0in;text-autospace:none;font-family:"Arial";margin-bottom:0in;margin-bottom:.0001pt'><b>Section 7 &#150; Regulation FD</b></p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:10.4pt;margin-left:0in;text-autospace:none;font-family:"Arial";margin-bottom:0in;margin-bottom:.0001pt'><b>Item 7.01 Regulation FD
Disclosure</b></p>

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<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Arial";margin-left:0in; margin-right:0in; margin-top:0in'>Greenville, South Carolina &#150;
March 31, 2009 &#150; Palmetto Bancshares, Inc. today paid to shareholders its
regular quarterly cash dividend of $0.06 per share for the first quarter of
2009 compared with $0.20 per share for the fourth quarter of 2008.&nbsp; </p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Arial";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
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<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Arial";margin-right:-9.0pt;text-align:center; margin-left:0in; margin-top:0in'><b>SIGNATURES</b></p>

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<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Arial";margin-right:-9.0pt;text-align:justify; margin-left:0in; margin-top:0in'>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 hereunto duly authorized.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-right:-9.0pt;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-right:-9.0pt;text-align:justify'>&nbsp;</p>

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<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Arial";margin-right:-9.0pt;text-align:justify; margin-left:0in; margin-top:0in'>PALMETTO BANCSHARES, INC.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-right:-9.0pt;text-align:justify'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-right:-9.0pt;text-align:justify'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Arial";margin-right:-9.0pt;text-align:justify; margin-left:0in; margin-top:0in'>By:</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-right:-9.0pt;text-align:justify'>&nbsp;</p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-top:0in;margin-right:-9.0pt;margin-bottom:0in;margin-left:
0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Arial";margin-top:0in;margin-right:-9.0pt;margin-bottom:0in;margin-left:
0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;<u>/s/
L. Leon Patterson&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</u></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Arial";margin-top:0in;margin-right:-9.0pt;margin-bottom:0in;margin-left:
0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;L.
Leon Patterson</p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Arial";margin-top:0in;margin-right:-9.0pt;margin-bottom:0in;margin-left:
0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;Chairman
and Chief Executive Officer</p>

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0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-top:0in;margin-right:-9.0pt;margin-bottom:0in;margin-left:
0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Arial";margin-right:-9.0pt;text-align:justify; margin-left:0in; margin-top:0in'>Date:&nbsp;&nbsp; April 2, 2009</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": "09725569"}, "business-address": {"street1": "301 HILLCREST DR", "street2": "P O BOX 49", "city": "LAURENS", "state": "SC", "zip": "29360", "phone": "8649844551"}}
8-K for Palmetto Bancshares, Inc.
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): March 31, 2009
Palmetto Bancshares, Inc.
(Exact name of registrant as specified in its
  charter)
South
  Carolina
0-26016
74-2235055
State or other
  jurisdiction of incorporation
Commission File Number
IRS Employer I.D. number
306
	East North Street, Greenville, South Carolina
29601
Address of principal
  executive offices
Zip Code
(800)
	725-2265
Registrant's telephone number
N/A
(Former Name or Former Address, if Changed Since
  Last Report
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))
Section 7 – Regulation FD
Item 7.01 Regulation FD
Disclosure
Greenville, South Carolina –
March 31, 2009 – Palmetto Bancshares, Inc. today paid to shareholders its
regular quarterly cash dividend of $0.06 per share for the first quarter of
2009 compared with $0.20 per share for the fourth quarter of 2008.
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 hereunto duly authorized.
PALMETTO BANCSHARES, INC.
By:
/s/
L. Leon Patterson
L.
Leon Patterson
Chairman
and Chief Executive Officer
Date:   April 2, 2009