<TABLE> <S> <C>


<ARTICLE>                                            9
<LEGEND>
This schedule contains summary financial information extracted from Palmetto
Bancshares, Inc. and subsidiary Consolidated Statements of Operations and
Consolidated Statements of Financial Condition and is qualified in its entirety
by reference to such financial statements.
</LEGEND>
<CIK>                        0000706874
<NAME>                       PALMETTO BANCSHARES, INC.
<MULTIPLIER>                                   1,000
       
<S>                             <C>
<PERIOD-TYPE>                                  YEAR                               
<FISCAL-YEAR-END>                              DEC-31-1998
<PERIOD-START>                                 JAN-01-1998
<PERIOD-END>                                   DEC-31-1998
<CASH>                                          27,929
<INT-BEARING-DEPOSITS>                               0
<FED-FUNDS-SOLD>                                   110
<TRADING-ASSETS>                                     0
<INVESTMENTS-HELD-FOR-SALE>                     46,087
<INVESTMENTS-CARRYING>                          66,455
<INVESTMENTS-MARKET>                            68,737
<LOANS>                                        410,012
<ALLOWANCE>                                     (5,795)
<TOTAL-ASSETS>                                 577,400
<DEPOSITS>                                     499,673
<SHORT-TERM>                                    32,489
<LIABILITIES-OTHER>                              3,153
<LONG-TERM>                                          0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                        15,498
<OTHER-SE>                                      26,587
<TOTAL-LIABILITIES-AND-EQUITY>                 577,400
<INTEREST-LOAN>                                 34,600
<INTEREST-INVEST>                                5,900
<INTEREST-OTHER>                                   329
<INTEREST-TOTAL>                                40,829
<INTEREST-DEPOSIT>                              15,157
<INTEREST-EXPENSE>                              16,440
<INTEREST-INCOME-NET>                           24,389
<LOAN-LOSSES>                                    1,877
<SECURITIES-GAINS>                                 150
<EXPENSE-OTHER>                                 19,130
<INCOME-PRETAX>                                  9,850
<INCOME-PRE-EXTRAORDINARY>                       6,850
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     6,850
<EPS-PRIMARY>                                     2.10
<EPS-DILUTED>                                     2.04
<YIELD-ACTUAL>                                    4.91
<LOANS-NON>                                      1,485
<LOANS-PAST>                                        87
<LOANS-TROUBLED>                                     0
<LOANS-PROBLEM>                                      0
<ALLOWANCE-OPEN>                                 5,152
<CHARGE-OFFS>                                   (1,362)
<RECOVERIES>                                       128
<ALLOWANCE-CLOSE>                                5,795
<ALLOWANCE-DOMESTIC>                                 0
<ALLOWANCE-FOREIGN>                                  0
<ALLOWANCE-UNALLOCATED>                              0
        

</TABLE>