<TABLE> <S> <C>


<ARTICLE>                                            9
<LEGEND>
The schedule contains summary financial information extracted from Palmetto
Bancshares, Inc. and subsidiary Consolidated Income Statements and Consolidated
Balance Sheets and is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<CIK>                         0000706874
<NAME>                        PALMETTO BANCHSARES, INC.
<MULTIPLIER>                                    1,000
       
<S>                                            <C>
<PERIOD-TYPE>                                    9-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-START>                             JUL-01-1998
<PERIOD-END>                               SEP-30-1998
<CASH>                                          30,534
<INT-BEARING-DEPOSITS>                               0
<FED-FUNDS-SOLD>                                     0
<TRADING-ASSETS>                                     0
<INVESTMENTS-HELD-FOR-SALE>                     29,682
<INVESTMENTS-CARRYING>                          71,264
<INVESTMENTS-MARKET>                            73,308
<LOANS>                                        398,563
<ALLOWANCE>                                     (5,593)
<TOTAL-ASSETS>                                 555,369
<DEPOSITS>                                     476,329
<SHORT-TERM>                                    35,540
<LIABILITIES-OTHER>                              2,997
<LONG-TERM>                                          0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                        15,433
<OTHER-SE>                                      20,336
<TOTAL-LIABILITIES-AND-EQUITY>                 555,369
<INTEREST-LOAN>                                 25,590
<INTEREST-INVEST>                                4,404
<INTEREST-OTHER>                                   275
<INTEREST-TOTAL>                                30,269
<INTEREST-DEPOSIT>                              11,363
<INTEREST-EXPENSE>                              12,341
<INTEREST-INCOME-NET>                           17,928
<LOAN-LOSSES>                                    1,412
<SECURITIES-GAINS>                                 141
<EXPENSE-OTHER>                                 14,261
<INCOME-PRETAX>                                  7,032
<INCOME-PRE-EXTRAORDINARY>                       4,884
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     4,884
<EPS-PRIMARY>                                     1.40
<EPS-DILUTED>                                     1.36
<YIELD-ACTUAL>                                    4.87
<LOANS-NON>                                      1,917
<LOANS-PAST>                                       147
<LOANS-TROUBLED>                                     0
<LOANS-PROBLEM>                                      0
<ALLOWANCE-OPEN>                                 5,152
<CHARGE-OFFS>                                   (1,061)
<RECOVERIES>                                        90
<ALLOWANCE-CLOSE>                                5,593
<ALLOWANCE-DOMESTIC>                                 0
<ALLOWANCE-FOREIGN>                                  0
<ALLOWANCE-UNALLOCATED>                              0
        

</TABLE>