Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

By letter dated February 25, 2009, Richard L. Granger resigned as a director of Tidelands Bancshares, Inc. The company thanks Mr. Granger for his service to the company and wishes him the best in future endeavors. The company has decided to leave Mr. Granger's board seat vacant at this time, and is not currently considering any candidates to fill his position on the board of directors.

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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.

TIDELANDS BANCSHARES, INC.

Dated: February 27, 2009 By: /s/ Robert E. Coffee, Jr.

Name: Robert E. Coffee, Jr. Title: Chief Executive Officer