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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
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<SEC-DOCUMENT>0001313319-10-000002.txt : 20100420
<SEC-HEADER>0001313319-10-000002.hdr.sgml : 20100420
<ACCEPTANCE-DATETIME>20100420153734
ACCESSION NUMBER:		0001313319-10-000002
CONFORMED SUBMISSION TYPE:	3
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20090701
FILED AS OF DATE:		20100420
DATE AS OF CHANGE:		20100420

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PALMETTO BANCSHARES INC
		CENTRAL INDEX KEY:			0000706874
		STANDARD INDUSTRIAL CLASSIFICATION:	STATE COMMERCIAL BANKS [6022]
		IRS NUMBER:				742235055
		STATE OF INCORPORATION:			SC
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		301 HILLCREST DR
		STREET 2:		P O BOX 49
		CITY:			LAURENS
		STATE:			SC
		ZIP:			29360
		BUSINESS PHONE:		8649844551

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			ERWIN SAMUEL L
		CENTRAL INDEX KEY:			0001313319

	FILING VALUES:
		FORM TYPE:		3
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-26016
		FILM NUMBER:		10759395

	MAIL ADDRESS:	
		STREET 1:		PO BOX 2086
		CITY:			ORANGEBURG
		STATE:			SC
		ZIP:			29116
</SEC-HEADER>
<DOCUMENT>
<TYPE>3
<SEQUENCE>1
<FILENAME>primary_doc.xml
<DESCRIPTION>PRIMARY DOCUMENT
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0203</schemaVersion>

    <documentType>3</documentType>

    <periodOfReport>2009-07-01</periodOfReport>

    <noSecuritiesOwned>1</noSecuritiesOwned>

    <issuer>
        <issuerCik>0000706874</issuerCik>
        <issuerName>PALMETTO BANCSHARES INC</issuerName>
        <issuerTradingSymbol>n/a</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001313319</rptOwnerCik>
            <rptOwnerName>ERWIN SAMUEL L</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>PO BOX 2086</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>ORANGEBURG</rptOwnerCity>
            <rptOwnerState>SC</rptOwnerState>
            <rptOwnerZipCode>29116</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>Pres.(Ho Co) Pres&amp;CEO (Bank)</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <remarks>On July 1, 2009, Mr. Erwin was named President and CEO of The Palmetto Bank and President of Palmetto Bancshares, Inc.  Since that time, Mr. Erwin was elected to the Board of both organizations (October 2009), and Mr. Erwin also assumed the role of CEO of Palmetto Bancshares, Inc. (January 2010).</remarks>

    <ownerSignature>
        <signatureName>Lauren S Greer, with POA, SVP The Palmetto Bank, a wholly owned subsidiary of Palmetto Bancshares, Inc.</signatureName>
        <signatureDate>2010-04-20</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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