##### Table of Contents

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U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



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FORM 10-QSB



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(Mark One)

|x | QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ---------------------------------------------------------------------------------

For the quarterly period ended June 30, 2006



| ̈ | TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE EXCHANGE ACT
|- | ---------------------------------------------------------------

For the transition period from  to

Commission file number 0-26231



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SUNCOAST BANCORP, INC.

(Exact name of small business issuer as specified in its charter)



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|                                                               |  |                                     
|-------------------------------------------------------------- |  | ------------------------------------
|Florida                                                        |  | 65-0827141                          
|(State or other jurisdiction of incorporation or organization) |  | (I.R.S. Employer Identification No.)

8592 Potter Park Drive, Suite 200

Sarasota, Florida 34238

(Address of principal executive offices)

(941) 923-0500

(Issuers telephone number)



(Former name,
former address and former fiscal year, if changed

since last report)



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Check whether the issuer
(1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days:    Yes  x    No ̈

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the
Exchange Act).    Yes ̈No  x

State the number of shares outstanding of each of the issuers classes of common equity, as of the latest practicable date;



|                                       |  |                             
|-------------------------------------- |  | ----------------------------
|Common stock, par value $.01 per
share |  | 1,055,576 shares            
|(class)                                |  | Outstanding at July 28, 2006

Transitional Small Business Format (Check One):    YES ̈NO  x



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##### Table of Contents

SUNCOAST BANCORP, INC. AND SUBSIDIARY

INDEX



|                                                                                                                           |  |      
|-------------------------------------------------------------------------------------------------------------------------- |  | -----
|                                                                                                                           |  | Page 
|PART I. FINANCIAL INFORMATION                                                                                              |  |      
|                                                                                                                           | 
|Item 1. Financial Statements                                                                                               |  |      
|                                                                                                                           | 
|Condensed Consolidated Balance Sheets - At June 30, 2006 (unaudited) and At December 31, 2005                              |  | 2    
|                                                                                                                           | 
|Condensed Consolidated Statements of Earnings - Three and Six Months Ended June 30, 2006 and 2005 (unaudited)              |  | 3    
|                                                                                                                           | 
|Condensed Consolidated Statements of Changes in Stockholders Equity - Six Months Ended June 30, 2006 and 2005 (unaudited) |  | 4    
|                                                                                                                           | 
|Condensed Consolidated Statements of Cash Flows - Six Months Ended June 30, 2006 and 2005 (unaudited)                      |  | 5    
|                                                                                                                           | 
|Notes to Condensed Consolidated Financial Statements (unaudited)                                                           |  | 6-11 
|                                                                                                                           | 
|Review by Independent Registered Public Accounting Firm                                                                    |  | 12   
|                                                                                                                           | 
|Report of Independent Registered Public Accounting Firm                                                                    |  | 13   
|                                                                                                                           | 
|Item 2. Managements Discussion and Analysis or Plan of Operation                                                          |  | 14-19
|                                                                                                                           | 
|Item 3. Controls and Procedures                                                                                            |  | 20   
|                                                                                                                           | 
|PART II. OTHER INFORMATION                                                                                                 |  |      
|                                                                                                                           | 
|Item 6. Exhibits                                                                                                           |  | 21   
|                                                                                                                           | 
|SIGNATURES                                                                                                                 |  | 22   



1



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##### Table of Contents

SUNCOAST BANCORP, INC. AND SUBSIDIARY

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Condensed Consolidated Balance Sheets

($ in thousands, except per share amounts)



|                                                                                                                                                                                                                        |  |               |         |   |                  |         |  
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------- | ------- | - | ---------------- | ------- | -
|                                                                                                                                                                                                                        |  | June 30, 2006 |         |   | December 31,2005 |        
|                                                                                                                                                                                                                        |  | (Unaudited)   |         |   |                  |        
|Assets                                                                                                                                                                                                                  |  |               |         |   |                  |         |  
|Cash and due from banks                                                                                                                                                                                                 |  | $             | 2,157   |   |                  | 2,378   |  
|Interest-bearing deposits with banks                                                                                                                                                                                    |  |               | 14      |   |                  | 30      |  
|Federal funds sold                                                                                                                                                                                                      |  |               | 526     |   |                  | 2,215   |  
|                                                                                                                                                                                                                        |  |               |         |   |                  |         |  
|Total cash and cash equivalents                                                                                                                                                                                         |  |               | 2,697   |   |                  | 4,623   |  
|                                                                                                                                                                                                                        |  |              
|Securities available for sale                                                                                                                                                                                           |  |               | 8,808   |   |                  | 9,603   |  
|Loans, net of allowance for loan losses of $1,343 and $1,194                                                                                                                                                            |  |               | 122,474 |   |                  | 112,977 |  
|Premises and equipment, net                                                                                                                                                                                             |  |               | 4,255   |   |                  | 3,067   |  
|Federal Reserve Bank stock, at cost                                                                                                                                                                                     |  |               | 418     |   |                  | 418     |  
|Federal Home Loan Bank stock, at cost                                                                                                                                                                                   |  |               | 264     |   |                  | 202     |  
|Accrued interest receivable                                                                                                                                                                                             |  |               | 509     |   |                  | 443     |  
|Other assets                                                                                                                                                                                                            |  |               | 856     |   |                  | 591     |  
|                                                                                                                                                                                                                        |  |               |         |   |                  |         |  
|Total assets                                                                                                                                                                                                            |  | $             | 140,281 |   |                  | 131,924 |  
|                                                                                                                                                                                                                        |  |               |         |   |                  |         |  
|Liabilities and Stockholders Equity                                                                                                                                                                                    |  |               |         |   |                  |         |  
|                                                                                                                                                                                                                        |  |              
|Liabilities:                                                                                                                                                                                                            |  |               |         |   |                  |         |  
|Noninterest-bearing demand deposits                                                                                                                                                                                     |  |               | 9,800   |   |                  | 11,880  |  
|Savings and NOW deposits                                                                                                                                                                                                |  |               | 8,201   |   |                  | 9,109   |  
|Money-market deposits                                                                                                                                                                                                   |  |               | 21,956  |   |                  | 29,708  |  
|Time deposits                                                                                                                                                                                                           |  |               | 84,870  |   |                  | 66,138  |  
|                                                                                                                                                                                                                        |  |               |         |   |                  |         |  
|Total deposits                                                                                                                                                                                                          |  |               | 124,827 |   |                  | 116,835 |  
|                                                                                                                                                                                                                        |  |              
|Federal funds purchased                                                                                                                                                                                                 |  |               | 109     |   |                  |        |  
|Other liabilities                                                                                                                                                                                                       |  |               | 532     |   |                  | 388     |  
|                                                                                                                                                                                                                        |  |               |         |   |                  |         |  
|Total liabilities                                                                                                                                                                                                       |  |               | 125,468 |   |                  | 117,223 |  
|                                                                                                                                                                                                                        |  |               |         |   |                  |         |  
|Stockholders equity:                                                                                                                                                                                                   |  |               |         |   |                  |         |  
|Preferred stock, par value $.01 per share, 3,000,000 shares authorized, of which 780,000 designated as mandatorily convertible preferred stock
$12.50 liquidation value, of which 511,384 shares issued and outstanding |  |               | 5       |   |                  | 5       |  
|Common stock par value $0.01 per share, 10,000,000 shares authorized; 1,055,576 and 1,053,476 shares issued and outstanding as of
June 30, 2006 and December 31, 2005                                                   |  |               | 11      |   |                  | 11      |  
|Additional paid-in capital                                                                                                                                                                                              |  |               | 15,729  |   |                  | 15,709  |  
|Accumulated deficit                                                                                                                                                                                                     |  |               | (667    | ) |                  | (839    | )
|Accumulated other comprehensive loss                                                                                                                                                                                    |  |               | (265    | ) |                  | (185    | )
|                                                                                                                                                                                                                        |  |               |         |   |                  |         |  
|Total stockholders equity                                                                                                                                                                                              |  |               | 14,813  |   |                  | 14,701  |  
|                                                                                                                                                                                                                        |  |               |         |   |                  |         |  
|Total liabilities and stockholders equity                                                                                                                                                                              |  | $             | 140,281 |   |                  | 131,924 |  
|                                                                                                                                                                                                                        |  |               |         |   |                  |         |  

See Accompanying Notes to Condensed Consolidated Financial Statements.



2



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##### Table of Contents

SUNCOAST BANCORP, INC. AND SUBSIDIARY

Condensed Consolidated Statements of Earnings (Unaudited)

(In thousands, except per share amounts)



|                                                    |  |                            |       |   |                          |       |   |      |       |   |      |       |  
|--------------------------------------------------- |  | -------------------------- | ----- | - | ------------------------ | ----- | - | ---- | ----- | - | ---- | ----- | -
|                                                    |  | Three Months EndedJune 30, |       |   | Six Months EndedJune 30, |      
|                                                    |  | 2006                       |       |   | 2005                     |       |   | 2006 |       |   | 2005 |      
|Interest income:                                    |  |                            |       |   |                          |       |   |      |       |   |      |       |  
|Loans                                               |  | $                          | 2,169 |   |                          | 1,506 |   |      | 4,164 |   |      | 2,858 |  
|Securities                                          |  |                            | 96    |   |                          | 86    |   |      | 196   |   |      | 176   |  
|Other                                               |  |                            | 31    |   |                          | 59    |   |      | 69    |   |      | 80    |  
|                                                    |  |                            |       |   |                          |       |   |      |       |   |      |       |  
|Total interest income                               |  |                            | 2,296 |   |                          | 1,651 |   |      | 4,429 |   |      | 3,114 |  
|                                                    |  |                            |       |   |                          |       |   |      |       |   |      |       |  
|Interest expense:                                   |  |                            |       |   |                          |       |   |      |       |   |      |       |  
|Deposits                                            |  |                            | 1,110 |   |                          | 637   |   |      | 2,055 |   |      | 1,131 |  
|Other borrowings                                    |  |                            |      |   |                          | 3     |   |      | 7     |   |      | 5     |  
|                                                    |  |                            |       |   |                          |       |   |      |       |   |      |       |  
|Total interest expense                              |  |                            | 1,110 |   |                          | 640   |   |      | 2,062 |   |      | 1,136 |  
|                                                    |  |                            |       |   |                          |       |   |      |       |   |      |       |  
|Net interest income                                 |  |                            | 1,186 |   |                          | 1,011 |   |      | 2,367 |   |      | 1,978 |  
|                                                    |  |                            |       |  
|Provision for loan losses                           |  |                            | 71    |   |                          | 60    |   |      | 149   |   |      | 180   |  
|                                                    |  |                            |       |   |                          |       |   |      |       |   |      |       |  
|Net interest income after provision for loan losses |  |                            | 1,115 |   |                          | 951   |   |      | 2,218 |   |      | 1,798 |  
|                                                    |  |                            |       |   |                          |       |   |      |       |   |      |       |  
|Noninterest income:                                 |  |                            |       |   |                          |       |   |      |       |   |      |       |  
|Service charges on deposit accounts                 |  |                            | 9     |   |                          | 9     |   |      | 17    |   |      | 19    |  
|Other service charges and fees                      |  |                            | 32    |   |                          | 16    |   |      | 50    |   |      | 30    |  
|Other                                               |  |                            |      |   |                          |      |   |      | 4     |   |      | 1     |  
|                                                    |  |                            |       |   |                          |       |   |      |       |   |      |       |  
|Total noninterest income                            |  |                            | 41    |   |                          | 25    |   |      | 71    |   |      | 50    |  
|                                                    |  |                            |       |   |                          |       |   |      |       |   |      |       |  
|Noninterest expense:                                |  |                            |       |   |                          |       |   |      |       |   |      |       |  
|Salaries and employee benefits                      |  |                            | 428   |   |                          | 330   |   |      | 871   |   |      | 657   |  
|Occupancy                                           |  |                            | 170   |   |                          | 102   |   |      | 302   |   |      | 203   |  
|Professional fees                                   |  |                            | 170   |   |                          | 64    |   |      | 252   |   |      | 120   |  
|Data processing                                     |  |                            | 46    |   |                          | 40    |   |      | 93    |   |      | 83    |  
|Stationery and supplies                             |  |                            | 35    |   |                          | 21    |   |      | 69    |   |      | 41    |  
|Other                                               |  |                            | 62    |   |                          | 68    |   |      | 134   |   |      | 125   |  
|                                                    |  |                            |       |   |                          |       |   |      |       |   |      |       |  
|Total noninterest expense                           |  |                            | 911   |   |                          | 625   |   |      | 1,721 |   |      | 1,229 |  
|                                                    |  |                            |       |   |                          |       |   |      |       |   |      |       |  
|Earnings before income taxes                        |  |                            | 245   |   |                          | 351   |   |      | 568   |   |      | 619   |  
|                                                    |  |                            |       |  
|Income taxes                                        |  |                            | 93    |   |                          | 133   |   |      | 216   |   |      | 235   |  
|                                                    |  |                            |       |   |                          |       |   |      |       |   |      |       |  
|Net earnings                                        |  |                            | 152   |   |                          | 218   |   |      | 352   |   |      | 384   |  
|                                                    |  |                            |       |  
|Preferred stock dividend                            |  |                            | (90   | ) |                          | (125  | ) |      | (180  | ) |      | (248  | )
|                                                    |  |                            |       |   |                          |       |   |      |       |   |      |       |  
|Net earnings applicable to common stockholders      |  | $                          | 62    |   |                          | 93    |   |      | 172   |   |      | 136   |  
|                                                    |  |                            |       |   |                          |       |   |      |       |   |      |       |  
|Earnings per share:                                 |  |                            |       |   |                          |       |   |      |       |   |      |       |  
|Basic                                               |  | $                          | .06   |   |                          | .13   |   |      | .16   |   |      | .18   |  
|                                                    |  |                            |       |   |                          |       |   |      |       |   |      |       |  
|Diluted                                             |  | $                          | .06   |   |                          | .12   |   |      | .16   |   |      | .18   |  
|                                                    |  |                            |       |   |                          |       |   |      |       |   |      |       |  
|Dividends per share                                 |  | $                          |      |   |                          |      |   |      |      |   |      |      |  
|                                                    |  |                            |       |   |                          |       |   |      |       |   |      |       |  

See Accompanying Notes to Condensed Consolidated Financial Statements.



3



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##### Table of Contents

SUNCOAST BANCORP, INC. AND SUBSIDIARY

Condensed Consolidated Statements of Changes in Stockholders
Equity (Unaudited)

For the Six Months Ended June 30, 2006 and 2005

(In thousands)



|                                                                                               |  |                |   |             |    |                          |        |                    |        |   |                                   |      |   |                          |        |  
|---------------------------------------------------------------------------------------------- |  | -------------- | - | ----------- | -- | ------------------------ | ------ | ------------------ | ------ | - | --------------------------------- | ---- | - | ------------------------ | ------ | -
|                                                                                               |  | PreferredStock |   | CommonStock |    | AdditionalPaid-InCapital |        | AccumulatedDeficit |        |   | AccumulatedOtherComprehensiveLoss |      |   | TotalStockholdersEquity |       
|Balance at December 31, 2004                                                                   |  | $              | 7 |             | 7  |                          | 15,109 |                    | (1,294 | ) |                                   | (36  | ) |                          | 13,793 |  
|                                                                                               |  |                |   |             |    |                          |        |                    |        |   |                                   |      |   |                          |        |  
|                                                                                               |  |                |   |             |    |                         
|Comprehensive income (loss):                                                                   |  |                |   |             |    |                          |        |                    |        |   |                                   |      |   |                          |        |  
|Net earnings (unaudited)                                                                       |  |                |  |             |   |                          |       |                    | 384    |   |                                   |     |   |                          | 384    |  
|                                                                                               |  |                |   |             |    |                         
|Net change in unrealized loss on securities available for sale, net of tax benefit (unaudited) |  |                |  |             |   |                          |       |                    |       |   |                                   | (50  | ) |                          | (50    | )
|                                                                                               |  |                |   |             |    |                          |        |                    |        |   |                                   |      |   |                          |        |  
|Comprehensive income (unaudited)                                                               |  |                |   |             |    |                          |        |                    |        |   |                                   |      |   |                          | 334    |  
|                                                                                               |  |                |   |             |    |                          |        |                    |        |   |                                   |      |   |                          |        |  
|Common stock granted as payment for services (unaudited)                                       |  |                |  |             |   |                          | 75     |                    |       |   |                                   |     |   |                          | 75     |  
|                                                                                               |  |                |   |             |    |                         
|Preferred stock dividend (unaudited)                                                           |  |                |  |             |   |                          |       |                    | (248   | ) |                                   |     |   |                          | (248   | )
|                                                                                               |  |                |   |             |    |                          |        |                    |        |   |                                   |      |   |                          |        |  
|Balance at June 30, 2005 (unaudited)                                                           |  | $              | 7 |             | 7  |                          | 15,184 |                    | (1,158 | ) |                                   | (86  | ) |                          | 13,954 |  
|                                                                                               |  |                |   |             |    |                          |        |                    |        |   |                                   |      |   |                          |        |  
|Balance at December 31, 2005                                                                   |  |                | 5 |             | 11 |                          | 15,709 |                    | (839   | ) |                                   | (185 | ) |                          | 14,701 |  
|                                                                                               |  |                |   |             |    |                          |        |                    |        |   |                                   |      |   |                          |        |  
|                                                                                               |  |                |   |             |    |                         
|Comprehensive income (loss):                                                                   |  |                |   |             |    |                          |        |                    |        |   |                                   |      |   |                          |        |  
|Net earnings (unaudited)                                                                       |  |                |  |             |   |                          |       |                    | 352    |   |                                   |     |   |                          | 352    |  
|                                                                                               |  |                |   |             |    |                         
|Net change in unrealized loss on securities available for sale, net of tax benefit (unaudited) |  |                |  |             |   |                          |       |                    |       |   |                                   | (80  | ) |                          | (80    | )
|                                                                                               |  |                |   |             |    |                          |        |                    |        |   |                                   |      |   |                          |        |  
|Comprehensive income (unaudited)                                                               |  |                |   |             |    |                          |        |                    |        |   |                                   |      |   |                          | 272    |  
|                                                                                               |  |                |   |             |    |                          |        |                    |        |   |                                   |      |   |                          |        |  
|Common stock options exercised (unaudited)                                                     |  |                |  |             |   |                          | 20     |                    |       |   |                                   |     |   |                          | 20     |  
|                                                                                               |  |                |   |             |    |                         
|Preferred stock dividend (unaudited)                                                           |  |                |  |             |   |                          |       |                    | (180   | ) |                                   |     |   |                          | (180   | )
|                                                                                               |  |                |   |             |    |                          |        |                    |        |   |                                   |      |   |                          |        |  
|Balance at June 30, 2006 (unaudited)                                                           |  | $              | 5 |             | 11 |                          | 15,729 |                    | (667   | ) |                                   | (265 | ) |                          | 14,813 |  
|                                                                                               |  |                |   |             |    |                          |        |                    |        |   |                                   |      |   |                          |        |  

See Accompanying Notes to Condensed Consolidated Financial Statements.



4



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##### Table of Contents

SUNCOAST BANCORP, INC. AND SUBSIDIARY

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In thousands)



|                                                                                                                   |  |                          |         |   |      |         |  
|------------------------------------------------------------------------------------------------------------------ |  | ------------------------ | ------- | - | ---- | ------- | -
|                                                                                                                   |  | Six Months EndedJune 30, |        
|                                                                                                                   |  | 2006                     |         |   | 2005 |        
|Cash flows from operating activities:                                                                              |  |                          |         |   |      |         |  
|Net earnings                                                                                                       |  | $                        | 352     |   |      | 384     |  
|Adjustments to reconcile net earnings to net cash provided by operating activities:                                |  |                          |         |   |      |         |  
|Depreciation                                                                                                       |  |                          | 103     |   |      | 57      |  
|Provision for loan losses                                                                                          |  |                          | 149     |   |      | 180     |  
|Net amortization of loan costs                                                                                     |  |                          | (8      | ) |      | 35      |  
|Increase in accrued interest receivable                                                                            |  |                          | (66     | ) |      | (43     | )
|(Increase) decrease in other assets                                                                                |  |                          | (215    | ) |      | 49      |  
|(Decrease) increase in other liabilities                                                                           |  |                          | (36     | ) |      | 74      |  
|                                                                                                                   |  |                          |         |   |      |         |  
|Net cash provided by operating activities                                                                          |  |                          | 279     |   |      | 736     |  
|                                                                                                                   |  |                          |         |   |      |         |  
|Cash flows from investing activities:                                                                              |  |                          |         |   |      |         |  
|Principal repayments of securities available for sale                                                              |  |                          | 665     |   |      | 761     |  
|Purchase of Federal Home Loan Bank stock                                                                           |  |                          | (62     | ) |      | (36     | )
|Net increase in loans                                                                                              |  |                          | (9,638  | ) |      | (14,577 | )
|Purchase of premises and equipment                                                                                 |  |                          | (1,291  | ) |      | (244    | )
|Purchase of Federal Reserve Bank stock                                                                             |  |                          |        |   |      | (176    | )
|                                                                                                                   |  |                          |         |   |      |         |  
|Net cash used in investing activities                                                                              |  |                          | (10,326 | ) |      | (14,272 | )
|                                                                                                                   |  |                          |         |   |      |         |  
|Cash flows from financing activities:                                                                              |  |                          |         |   |      |         |  
|Net increase in deposits                                                                                           |  |                          | 7,992   |   |      | 22,526  |  
|Net increase (decrease) in federal funds purchased                                                                 |  |                          | 109     |   |      | (1,987  | )
|Proceeds from common stock options exercised                                                                       |  |                          | 20      |   |      |        |  
|                                                                                                                   |  |                          |         |   |      |         |  
|Net cash provided by financing activities                                                                          |  |                          | 8,121   |   |      | 20,539  |  
|                                                                                                                   |  |                          |         |   |      |         |  
|Net (decrease) increase in cash and cash equivalents                                                               |  |                          | (1,926  | ) |      | 7,003   |  
|                                                                                                                   |  |                         
|Cash and cash equivalents at beginning of period                                                                   |  |                          | 4,623   |   |      | 6,878   |  
|                                                                                                                   |  |                          |         |   |      |         |  
|Cash and cash equivalents at end of period                                                                         |  | $                        | 2,697   |   |      | 13,881  |  
|                                                                                                                   |  |                          |         |   |      |         |  
|Supplemental disclosure of cash flow information:                                                                  |  |                          |         |   |      |         |  
|Cash paid during the period for:                                                                                   |  |                          |         |   |      |         |  
|Interest                                                                                                           |  | $                        | 1,993   |   |      | 1,108   |  
|                                                                                                                   |  |                          |         |   |      |         |  
|Income taxes                                                                                                       |  | $                        | 471     |   |      |        |  
|                                                                                                                   |  |                          |         |   |      |         |  
|Noncash transactions:                                                                                              |  |                          |         |   |      |         |  
|Accumulated other comprehensive income, net change in unrealized loss on securities available for sale, net of tax |  | $                        | (80     | ) |      | (50     | )
|                                                                                                                   |  |                          |         |   |      |         |  
|Preferred stock dividends payable                                                                                  |  | $                        | 180     |   |      | 248     |  
|                                                                                                                   |  |                          |         |   |      |         |  
|Common stock granted as payment for services                                                                       |  | $                        |        |   |      | 75      |  
|                                                                                                                   |  |                          |         |   |      |         |  

See Accompanying Notes to Condensed Consolidated Financial Statements.



5



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##### Table of Contents

SUNCOAST BANCORP, INC. AND SUBSIDIARY

Notes to Condensed Consolidated Financial Statements (unaudited)



|(1) | Description of Business and Basis of Presentation
|--- | -------------------------------------------------

SunCoast Bancorp, Inc. (the Holding Company) owns 100% of the outstanding common stock of SunCoast Bank (the Bank) (collectively the Company). The Holding Companys only business is the ownership and
operation of the Bank. The Bank is a state (Florida) chartered commercial bank providing a variety of community banking services to businesses and individuals through its three banking offices located in Sarasota and Manatee Counties, Florida.

In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments (consisting principally
of normal recurring accruals) necessary to present fairly the financial position at June 30, 2006, the results of operations for the three- and six-month periods ended June 30, 2006 and 2005 and cash flows for the six month periods ended
June 30, 2006 and 2005. The results of operations for the three- and six- month periods ended June 30, 2006 are not necessarily indicative of the results to be expected for the year ending December 31, 2006.



|(2) | Loan Impairment and Loan Losses
|--- | -------------------------------

No loans were
identified as impaired at or during the three and six months ended June 30, 2006 and 2005. The activity in the allowance for loan losses is as follows (in thousands):



|                               |  |                            |       |                          |       |      |       |      |      
|------------------------------ |  | -------------------------- | ----- | ------------------------ | ----- | ---- | ----- | ---- | -----
|                               |  | Three Months EndedJune 30, |       | Six Months EndedJune 30,
|                               |  | 2006                       |       | 2005                     |       | 2006 |       | 2005
|Balance at beginning of period |  | $                          | 1,272 |                          | 984   |      | 1,194 |      | 864  
|Provision charged to earnings  |  |                            | 71    |                          | 60    |      | 149   |      | 180  
|                               |  |                            |       |                          |       |      |       |      |      
|Balance at end of period       |  | $                          | 1,343 |                          | 1,044 |      | 1,343 |      | 1,044
|                               |  |                            |       |                          |       |      |       |      |      

There were no nonaccrual loans or loans past due ninety days or more, but still accruing interest
at June 30, 2006 or 2005.

(continued)



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SUNCOAST BANCORP, INC. AND SUBSIDIARY

Notes to Condensed Consolidated Financial Statements (unaudited), Continued



|(3) | Earnings Per Share
|--- | ------------------

Earnings per share
(EPS) of common stock has been computed on the basis of the weighted-average number of shares of common stock outstanding. Outstanding common stock options were considered dilutive securities for purposes of calculating diluted EPS which
is computed using the treasury stock method. The preferred stock is not considered dilutive. The following table presents the calculations of the weighted-average number of shares for diluted EPS (dollars in thousands, except share amounts):



|                                                                                     |  |          |     |                        |           |                |   |          |  |                        |     |                |         |  |   |    
|------------------------------------------------------------------------------------ |  | -------- | --- | ---------------------- | --------- | -------------- | - | -------- |  | ---------------------- | --- | -------------- | ------- |  | - | ---
|                                                                                     |  | 2006     |     | 2005                  
|                                                                                     |  | Earnings |     | Weighted-AverageShares |           | PerShareAmount |   | Earnings |  | Weighted-AverageShares |     | PerShareAmount
|Three Months Ended June 30,:                                                         |  |          |     |                        |           |                |   |          |  |                        |     |                |         |  |   |    
|Basic EPS:                                                                           |  |          |     |                        |           |                |   |          |  |                        |     |                |         |  |   |    
|Net earnings available to common stockholders                                        |  | $        | 62  |                        | 1,055,576 |                | $ | .06      |  | $                      | 93  |                | 739,206 |  | $ | .13
|                                                                                     |  |          |     |                        |           |                |   |          |  |                        |     |                |         |  |   |    
|Effect of dilutive securities-Incremental shares from assumed conversion of options  |  |          |    |                        | 37,043    |                |   |          |  |                        |    |                | 25,504  |  |   |    
|                                                                                     |  |          |     |                        |           |                |   |          |  |                        |     |                |         |  |   |    
|Diluted EPS:                                                                         |  |          |     |                        |           |                |   |          |  |                        |     |                |         |  |   |    
|Net earnings available to common stockholders and assumed conversions                |  | $        | 62  |                        | 1,092,619 |                | $ | .06      |  | $                      | 93  |                | 764,710 |  | $ | .12
|                                                                                     |  |          |     |                        |           |                |   |          |  |                        |     |                |         |  |   |    
|Six Months Ended June 30,:                                                           |  |          |     |                        |           |                |   |          |  |                        |     |                |         |  |   |    
|Basic EPS:                                                                           |  |          |     |                        |           |                |   |          |  |                        |     |                |         |  |   |    
|Net earnings available to common stockholders                                        |  | $        | 172 |                        | 1,054,787 |                | $ | .16      |  | $                      | 136 |                | 739,206 |  | $ | .18
|                                                                                     |  |          |     |                        |           |                |   |          |  |                        |     |                |         |  |   |    
|Effect of dilutive securities- Incremental shares from assumed conversion of options |  |          |    |                        | 34,799    |                |   |          |  |                        |    |                | 25,587  |  |   |    
|                                                                                     |  |          |     |                        |           |                |   |          |  |                        |     |                |         |  |   |    
|Diluted EPS:                                                                         |  |          |     |                        |           |                |   |          |  |                        |     |                |         |  |   |    
|Net earnings available to common stockholders and assumed conversions                |  | $        | 172 |                        | 1,089,586 |                | $ | .16      |  | $                      | 136 |                | 764,793 |  | $ | .18
|                                                                                     |  |          |     |                        |           |                |   |          |  |                        |     |                |         |  |   |    

(continued)



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SUNCOAST BANCORP, INC. AND SUBSIDIARY

Notes to Condensed Consolidated Financial Statements (unaudited), Continued



|(4) | Stock-Based Compensation
|--- | ------------------------

Prior to January 1,
2006, the Companys stock option plans were accounted for under the recognition and measurement provisions of APB Opinion No. 25 (Opinion 25), Accounting for Stock Issued to Employees, and related Interpretations, as permitted by
FASB Statement No. 123, Accounting for Stock-Based Compensation (as amended by SFAS No. 148, Accounting for Stock-Based Compensation Transition and Disclosure) (collectively SFAS 123). No stock-based employee compensation
cost was recognized in the Companys consolidated statements of earnings through December 31, 2005, as all options granted under the plans had an exercise price equal to the market value of the underlying common stock on the date of grant.
Effective January 1, 2006, the Company adopted the fair value recognition provisions of FASB Statement No. 123(R), Share-Based Payment(SFAS 123R), using the modified-prospective-transition method. Under that transition
method, compensation cost recognized in 2006 includes: (a) compensation cost for all share-based payments granted prior to, but not yet vested as of January 1, 2006, based on the grant date fair value calculated in accordance with the
original provisions of SFAS 123, and (b) compensation cost for all share-based payments granted subsequent to December 31, 2005, based on the grant-date fair value estimated in accordance with the provisions of SFAS 123(R). As of
December 31, 2005, all stock options were fully vested and no options were granted during the period ending June 30, 2006; therefore, no stock-based compensation has been recognized in 2006.

In addition, prior to the adoption of SFAS 123(R), the tax benefits of stock options exercised were classified as operating cash flows. Since the adoption
of SFAS 123(R), tax benefits resulting from tax deductions in excess of the compensation cost recognized for options are classified as financing cash flows. As the Company adopted the modified-prospective- transition method, the prior period
condensed consolidated cash flow statement was not adjusted to reflect current period presentation.

The Company has both an Employee and
Director Stock Option Plan. Under the Employee Stock Option Plan, the exercise price of the common stock options must at least equal the fair market value of the common stock at the date of grant. Options granted under this plan are exercisable for
10 years from date of grant and vest in increments of 20% per year commencing one year from grant date. In December 2005, the Companys Board of Directors approved the acceleration of vesting of all outstanding stock options. A total of
58,800 shares of common stock have been reserved under this Plan. At June 30, 2006, 800 options remain available for grant.

Under the
Director Stock Option Plan, the exercise price of the stock options is the fair market value of the common stock at the date of grant. The options have a ten year term. These options vest in increments of 20% per year commencing one year from
grant date. A total of 44,100 shares of common stock have been reserved under this Plan. In December 2005, the Companys Board of Directors approved the acceleration of vesting of all outstanding stock options. At June 30, 2006, no options
remain available for grant.

(continued)



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SUNCOAST BANCORP, INC. AND SUBSIDIARY

Notes to Condensed Consolidated Financial Statements (unaudited), Continued



|(4) | Stock-Based Compensation, Continued
|--- | -----------------------------------

In December
2005, the Companys Board of Directors approved the acceleration of vesting of all outstanding stock options (the Acceleration). In accordance with SFAS 123, in 2005 the Company expensed the remaining unrecognized compensation cost
associated with the options with accelerated vesting in the proforma disclosure. These actions were taken in order to avoid expense recognition in future financial statements upon adoption of SFAS 123(R).

A summary of the activity in the Companys stock option plans is as follows (dollars in thousands, except per share amounts):



|                                             |  |                  |   |  |                               |       |                                          |           |                         |   |    
|-------------------------------------------- |  | ---------------- | - |  | ----------------------------- | ----- | ---------------------------------------- | --------- | ----------------------- | - | ---
|                                             |  | Number ofOptions |   |  | Weighted-AverageExercisePrice |       | Weighted-AverageRemainingContractualTerm |           | AggregateIntrinsicValue
|Outstanding at December 31, 2005             |  | 102,900          |   |  | $                             | 10.78 |                                          |           |                         |   |    
|Exercised                                    |  | (2,100           | ) |  |                               | 9.52  |                                          |           |                         |   |    
|Forfeited                                    |  | (800             | ) |  |                               | 17.00 |                                          |           |                         |   |    
|                                             |  |                  |   |  |                               |       |                                          |           |                         |   |    
|Outstanding and exercisable at June 30, 2006 |  | 100,000          |   |  | $                             | 10.75 |                                          | 4.9 years |                         | $ | 935
|                                             |  |                  |   |  |                               |       |                                          |           |                         |   |    

The total intrinsic value of options exercised during the six months ended June 30, 2006 was
$13,608. There were no options exercised in the three months ended June 30, 2006.

(continued)



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##### Table of Contents

SUNCOAST BANCORP, INC. AND SUBSIDIARY

Notes to Condensed Consolidated Financial Statements (unaudited), Continued



|(4) | Stock-Based Compensation, Continued
|--- | -----------------------------------

The following
table illustrates the effect on net earnings and earnings per share if the Company had applied the fair value recognition provisions of SFAS 123 to options granted under the Companys stock option plans for the three months and six months ended
June 30, 2005. For purposes of this pro forma disclosure, the value of the options is estimated using the Black-Scholes option-pricing model and is being amortized to expense over the options vesting periods (in thousands, except per
share data).



|                                                                                                                |  |                            |     |   |                          |   |     |  
|--------------------------------------------------------------------------------------------------------------- |  | -------------------------- | --- | - | ------------------------ | - | --- | -
|                                                                                                                |  | Three Months EndedJune 30, |     |   | Six Months EndedJune 30, |  
|                                                                                                                |  | 2005                       |     |   | 2005                     |  
|Net earnings applicable to common stockholders, as reported                                                     |  | $                          | 93  |   |                          | $ | 136 |  
|Deduct: Total stock-based employee compensation expense determined under fair value based method for all awards |  |                            | (10 | ) |                          |   | (20 | )
|                                                                                                                |  |                            |     |   |                          |   |     |  
|Proforma net earnings applicable to common stockholders                                                         |  | $                          | 83  |   |                          | $ | 116 |  
|                                                                                                                |  |                            |     |   |                          |   |     |  
|Basic earnings per share:                                                                                       |  |                            |     |   |                          |   |     |  
|As reported                                                                                                     |  | $                          | .13 |   |                          | $ | .18 |  
|                                                                                                                |  |                            |     |   |                          |   |     |  
|Proforma                                                                                                        |  | $                          | .11 |   |                          | $ | .16 |  
|                                                                                                                |  |                            |     |   |                          |   |     |  
|                                                                                                                |  |                           
|Diluted earnings per share:                                                                                     |  |                            |     |   |                          |   |     |  
|As reported                                                                                                     |  | $                          | .12 |   |                          | $ | .18 |  
|                                                                                                                |  |                            |     |   |                          |   |     |  
|Proforma                                                                                                        |  | $                          | .11 |   |                          | $ | .15 |  
|                                                                                                                |  |                            |     |   |                          |   |     |  



|(5) | Regulatory Capital
|--- | ------------------

The Bank is required to
maintain certain minimum regulatory capital requirements. The following is a summary at June 30, 2006 of the regulatory capital requirements and the Banks actual capital on a percentage basis:



|                                              |  |        |   |  |                                                   |  
|--------------------------------------------- |  | ------ | - |  | ------------------------------------------------- | -
|                                              |  | Actual |   |  | Regulatory RequirementFor Well- Capitalized Banks |  
|Total capital to risk-weighted assets         |  | 11.43  | % |  | 10.00                                             | %
|Tier I capital to risk-weighted assets        |  | 10.48  | % |  | 6.00                                              | %
|Tier I capital to total assetsleverage ratio |  | 10.66  | % |  | 5.00                                              | %

At June 30, 2006, management believes the Bank is adequately capitalized.

(continued)



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SUNCOAST BANCORP, INC. AND SUBSIDIARY

Notes to Condensed Consolidated Financial Statements (unaudited), Continued



|(6) | Preferred Stock
|--- | ---------------

In 2004, the Company sold 480,000
shares of cumulative convertible preferred stock for proceeds of $5,913,000, net of issuance costs of approximately $87,000. The cumulative convertible preferred stock is mandatorily convertible into common stock at a conversion price of $10.50 per
share (subject to antidilution adjustments) on the earlier of December 31, 2006 or a change of control of the Company. In addition, per share cumulative dividends on shares of preferred stock computed at 6% per annum are payable on
December 31, 2005 and 2006. On December 31, 2005, the Company issued 31,384 shares of preferred stock as dividends.

In 2003, the
Company sold 225,400 shares of cumulative convertible preferred stock for proceeds of $2,219,000, net of issuance costs of approximately $35,000. The cumulative convertible preferred stock was mandatorily convertible into common stock at a
conversion price of $8.10 per share (subject to antidilution adjustments) on September 30, 2005. The Company issued 13,524 and 15,575 shares of preferred stock as dividends on September 30, 2005 and September 30, 2004, respectively.
On September 30, 2005, 254,499 shares of preferred stock were converted to 314,270 shares of common stock of the Company.

Cumulative
accrued dividends on all preferred stock totaled approximately $180,000 at June 30, 2006.



|(7) | Pending Acquisition
|--- | -------------------

On March 16, 2006, the
Company entered into an agreement to merge with NBC Capital Corporation (NBC). As a result of the merger, each share of common stock of the Company will be converted into the right to receive the merger consideration equal to $20.50,
subject to certain adjustments. The aggregate merger consideration is approximately $34.8 million. Holders of the Companys common stock may elect to receive their pro rata share of the merger consideration in cash, shares of the common stock
of NBC, or a combination of cash and stock; provided, however, that, notwithstanding any elections, in the aggregate, 45% of the merger consideration paid by NBC in connection with the merger will be paid in cash. In addition, each option to
purchase the Companys common stock will be converted into cash in the amount of $20.50 less the exercise price of each such option. The Companys shareholders approved the merger agreement at a special shareholder meeting held on
July 11, 2006. Regulatory approval of the merger has also been received. The merger is scheduled to close on August 17, 2006.



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##### Table of Contents

SUNCOAST BANCORP, INC. AND SUBSIDIARY

Review by Independent Registered Public Accounting Firm

Hacker, Johnson & Smith PA, the Companys independent registered public accounting firm, have made a limited review of the financial data as of
June 30, 2006, and for the three- and six- month periods ended June 30, 2006 and 2005 presented in this document, in accordance with standards established by the Public Company Accounting Oversight Board.

Their report furnished pursuant to Article 10 of Regulation S-X is included herein.



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##### Table of Contents

Report of Independent Registered Public Accounting Firm

SunCoast Bancorp, Inc.

Sarasota, Florida:

We have reviewed the accompanying
condensed consolidated balance sheet of SunCoast Bancorp, Inc. and Subsidiary (the Company) as of June 30, 2006, and the related condensed consolidated statements of earnings for the three- and six- month periods ended June 30,
2006 and 2005, the related condensed consolidated statements of cash flows and changes in stockholders equity for the six-month periods ended June 30, 2006 and 2005. These interim condensed financial statements are the responsibility of
the Companys management.

We conducted our reviews in accordance with the standards of the Public Company Accounting Oversight Board
(United States). A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit
conducted in accordance with the standards of the Public Company Accounting Oversight Board, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an
opinion.

Based on our reviews, we are not aware of any material modifications that should be made to the condensed consolidated financial
statements referred to above for them to be in conformity with U.S. generally accepted accounting principles.

We have previously audited,
in accordance with the standards of the Public Company Accounting Oversight Board, the consolidated balance sheet of the Company as of December 31, 2005, and the related consolidated statements of earnings, changes in stockholders equity
and cash flows for the year then ended (not presented herein); and in our report dated February 17, 2006, except for note 18, as to which the date is March 20, 2006, we expressed an unqualified opinion on those consolidated financial
statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of December 31, 2005, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it
has been derived.



|                              
|------------------------------
|/s/ Hacker, Johnson & Smith PA
|HACKER, JOHNSON & SMITH PA    
|Tampa, Florida                
|July 25, 2006                 



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SUNCOAST BANCORP, INC. AND SUBSIDIARY

Item 2. Managements Discussion and Analysis

or Plan of Operation

General

SunCoast Bancorp, Inc. (the Holding
Company) owns 100% of the outstanding common stock of SunCoast Bank (the Bank) (collectively the Company). The Holding Companys only business is the ownership and operation of the Bank. The Bank is a state
(Florida) chartered commercial bank providing a variety of community banking services to businesses and individuals through its three banking offices located in Sarasota and Manatee Counties, Florida.

On March 16, 2006, the Company entered into an agreement to merge with NBC Capital Corporation (NBC). As a result of the merger, each
share of common stock of the Company will be converted into the right to receive the merger consideration equal to $20.50, subject to certain adjustments. The aggregate merger consideration is approximately $34.8 million. Holders of the
Companys common stock may elect to receive their pro rata share of the merger consideration in cash, shares of the common stock of NBC, or a combination of cash and stock; provided, however, that, notwithstanding any elections, in the
aggregate, 45% of the merger consideration paid by NBC in connection with the merger will be paid in cash. In addition, each option to purchase the Companys common stock will be converted into cash in the amount of $20.50 less the exercise
price of each such option. The Companys shareholders approved the merger agreement at a special shareholder meeting held on July 11, 2006. Regulatory approval of the merger has also been received. The merger is scheduled to close on
August 17, 2006.

Liquidity and Capital Resources

The Companys primary sources of cash during the six months ended June 30, 2006 were net deposit inflows of $8 million, proceeds from the repayment of securities available for sale of $665,000, and net cash
provided by operations of $279,000. Cash was used primarily to originate loans, net of principal repayments, totaling $9.6 million.

Off-Balance-Sheet
Financial Instruments

The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to
meet the financing needs of its customers. These financial instruments are unused lines of credit, commitments to extend credit and standby letters of credit and may involve, to varying degrees, elements of credit and interest-rate risk in excess of
the amount recognized in the consolidated balance sheet. The contract amounts of these instruments reflect the extent of the Companys obligations under these financial instruments.

The Companys exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit
is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments as it does for on-balance-sheet instruments.

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination
clauses and may require payment of a fee. Since some of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customers
credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on managements credit evaluation of the counterparty.

Standby letters of credit are conditional lending commitments issued by the Company to guarantee the performance of a customer to a third party, and to
support public and private borrowing arrangements. Essentially all letters of credit issued have expiration dates within one year. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan
facilities to customers. The Company generally holds collateral supporting those commitments.



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##### Table of Contents

SUNCOAST BANCORP, INC. AND SUBSIDIARY

Item 2. Managements Discussion and Analysis

or Plan of
Operation, Continued

A summary of the Companys financial instruments with off-balance sheet risk at June 30, 2006 follows (in thousands):



|                                        |  |                |       
|--------------------------------------- |  | -------------- | ------
|                                        |  | ContractAmount
|Commitments to extend credit            |  | $              | 4,550 
|                                        |  |                |       
|Unused lines of credit and construction |  | $              | 28,405
|                                        |  |                |       
|Standby letters of credit               |  | $              | 824   
|                                        |  |                |       

Management believes that the Company has adequate resources to fund all of its commitments and
that substantially all its existing commitments will be funded within the next twelve months.

Results of Operations

The following rates are presented for the dates and periods indicated:



|                                                                                                |  |                             |   |  |                            |   |  |                             |  
|----------------------------------------------------------------------------------------------- |  | --------------------------- | - |  | -------------------------- | - |  | --------------------------- | -
|                                                                                                |  | Six MonthsEndedJune 30,2006 |   |  | Year EndedDecember 31,2005 |   |  | Six MonthsEndedJune 30,2005 |  
|Average equity as a percentage of average assets                                                |  | 10.85                       | % |  | 11.87                      | % |  | 12.68                       | %
|Equity to total assets at end of period                                                         |  | 10.56                       | % |  | 11.14                      | % |  | 11.46                       | %
|Return on average assets (1)                                                                    |  | .52                         | % |  | .77                        | % |  | 0.71                        | %
|Return on average equity (1)                                                                    |  | 4.77                        | % |  | 6.53                       | % |  | 5.53                        | %
|Noninterest expenses to average assets (1)                                                      |  | 2.53                        | % |  | 2.20                       | % |  | 2.25                        | %
|Nonperforming loans and foreclosed real estate as a percentage of total assets at end of period |  |                            | % |  |                           | % |  |                            | %

---

|(1) | Annualized for the six month periods.
|--- | -------------------------------------



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SUNCOAST BANCORP, INC. AND SUBSIDIARY

The following table sets forth, for the periods indicated, information regarding (i) the total dollar amount of interest and dividend income of the Company from
interest-earning assets and the resultant average yields; (ii) the total dollar amount of interest expense on interest-bearing liabilities and the resultant average cost; (iii) net interest income; (iv) interest-rate spread; and
(v) net interest margin.



|                                                                                 |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|-------------------------------------------------------------------------------- |  | --------------------------- | ------- | -------------------- | ---- | ----------------- |  | ---- | -------------- |  | -------------------- | ------- | ----------------- | - | ----- |  | ---- | -
|                                                                                 |  | Three Months Ended June 30, |        
|                                                                                 |  | 2006                        |         |                      | 2005 |                  
|                                                                                 |  | AverageBalance              |         | InterestandDividends |      | AverageYield/Rate |  |      | AverageBalance |  | InterestandDividends |         | AverageYield/Rate |  
|                                                                                 |  | (Dollars in thousands)      |        
|Interest-earning assets:                                                         |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Loans                                                                            |  | $                           | 120,514 |                      | $    | 2,169             |  | 7.20 | %              |  | $                    | 93,254  |                   | $ | 1,506 |  | 6.44 | %
|Securities                                                                       |  |                             | 9,024   |                      |      | 96                |  | 4.26 |                |  |                      | 8,783   |                   |   | 86    |  | 3.92 |  
|Other interest-earning assets (1)                                                |  |                             | 2,413   |                      |      | 31                |  | 5.14 |                |  |                      | 7,368   |                   |   | 59    |  | 3.20 |  
|                                                                                 |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Total interest-earning assets                                                    |  |                             | 131,951 |                      |      | 2,296             |  | 6.96 |                |  |                      | 109,405 |                   |   | 1,651 |  | 6.04 |  
|                                                                                 |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Noninterest-earning assets                                                       |  |                             | 6,647   |                      |      |                   |  |      |                |  |                      | 5,361   |                   |   |       |  |      |  
|                                                                                 |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Total assets                                                                     |  | $                           | 138,598 |                      |      |                   |  |      |                |  | $                    | 114,766 |                   |   |       |  |      |  
|                                                                                 |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Interest-bearing liabilities:                                                    |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Savings, NOW, money-market deposit accounts                                      |  |                             | 31,911  |                      |      | 238               |  | 2.98 |                |  |                      | 38,992  |                   |   | 180   |  | 1.85 |  
|Time deposits                                                                    |  |                             | 80,855  |                      |      | 872               |  | 4.31 |                |  |                      | 51,069  |                   |   | 457   |  | 3.58 |  
|                                                                                 |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Total interest-bearing deposits                                                  |  |                             | 112,766 |                      |      | 1,110             |  | 3.94 |                |  |                      | 90,061  |                   |   | 637   |  | 2.83 |  
|                                                                                 |  |                             |         |                      |      |                  
|Federal funds purchased                                                          |  |                             | 54      |                      |      |                  |  |     |                |  |                      | 292     |                   |   | 3     |  | 4.11 |  
|                                                                                 |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Total interest-bearing liabilities                                               |  |                             | 112,820 |                      |      | 1,110             |  | 3.94 |                |  |                      | 90,353  |                   |   | 640   |  | 2.84 |  
|                                                                                 |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Noninterest-bearing liabilities                                                  |  |                             | 11,014  |                      |      |                   |  |      |                |  |                      | 10,502  |                   |   |       |  |      |  
|Stockholders equity                                                             |  |                             | 14,764  |                      |      |                   |  |      |                |  |                      | 13,911  |                   |   |       |  |      |  
|                                                                                 |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Total liabilities and stockholders equity                                       |  | $                           | 138,598 |                      |      |                   |  |      |                |  | $                    | 114,766 |                   |   |       |  |      |  
|                                                                                 |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Net interest income                                                              |  |                             |         |                      | $    | 1,186             |  |      |                |  |                      |         |                   | $ | 1,011 |  |      |  
|                                                                                 |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Interest-rate spread (2)                                                         |  |                             |         |                      |      |                   |  | 3.02 | %              |  |                      |         |                   |   |       |  | 3.20 | %
|                                                                                 |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Net interest margin (3)                                                          |  |                             |         |                      |      |                   |  | 3.60 | %              |  |                      |         |                   |   |       |  | 3.70 | %
|                                                                                 |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Ratio of average interest-earning assets to average interest-bearing liabilities |  |                             | 1.17    |                      |      |                   |  |      |                |  |                      | 1.21    |                   |   |       |  |      |  
|                                                                                 |  |                             |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  

---

|(1) | Includes Federal Home Loan Bank stock, Federal Reserve Bank stock, federal funds sold and interest-bearing deposits.
|--- | --------------------------------------------------------------------------------------------------------------------

|(2) | Interest-rate spread represents the difference between the average yield on interest-earning assets and the average rate of interest-bearing liabilities.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | Net interest margin is net interest income divided by average interest-earning assets.
|--- | --------------------------------------------------------------------------------------



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SUNCOAST BANCORP, INC. AND SUBSIDIARY

The following table sets forth, for the periods indicated, information regarding (i) the total dollar amount of interest and dividend income of the Company from
interest-earning assets and the resultant average yields; (ii) the total dollar amount of interest expense on interest-bearing liabilities and the resultant average cost; (iii) net interest income; (iv) interest-rate spread; and
(v) net interest margin.



|                                                                                 |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|-------------------------------------------------------------------------------- |  | ------------------------- | ------- | -------------------- | ---- | ----------------- |  | ---- | -------------- |  | -------------------- | ------- | ----------------- | - | ----- |  | ---- | -
|                                                                                 |  | Six Months Ended June 30, |        
|                                                                                 |  | 2006                      |         |                      | 2005 |                  
|                                                                                 |  | AverageBalance            |         | InterestandDividends |      | AverageYield/Rate |  |      | AverageBalance |  | InterestandDividends |         | AverageYield/Rate |  
|                                                                                 |  | (Dollars in thousands)    |        
|Interest-earning assets:                                                         |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Loans                                                                            |  | $                         | 117,736 |                      | $    | 4,164             |  | 7.07 | %              |  | $                    | 90,021  |                   | $ | 2,858 |  | 6.35 | %
|Securities                                                                       |  |                           | 9,255   |                      |      | 196               |  | 4.24 |                |  |                      | 9,005   |                   |   | 176   |  | 3.91 |  
|Other interest-earning assets (1)                                                |  |                           | 2,849   |                      |      | 69                |  | 4.84 |                |  |                      | 5,270   |                   |   | 80    |  | 3.04 |  
|                                                                                 |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Total interest-earning assets                                                    |  |                           | 129,840 |                      |      | 4,429             |  | 6.82 |                |  |                      | 104,296 |                   |   | 3,114 |  | 5.98 |  
|                                                                                 |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Noninterest-earning assets                                                       |  |                           | 6,336   |                      |      |                   |  |      |                |  |                      | 5,188   |                   |   |       |  |      |  
|                                                                                 |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Total assets                                                                     |  | $                         | 136,176 |                      |      |                   |  |      |                |  | $                    | 109,484 |                   |   |       |  |      |  
|                                                                                 |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Interest-bearing liabilities:                                                    |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Savings, NOW, money-market deposit accounts                                      |  |                           | 34,062  |                      |      | 468               |  | 2.75 |                |  |                      | 39,694  |                   |   | 357   |  | 1.80 |  
|Time deposits                                                                    |  |                           | 76,199  |                      |      | 1,587             |  | 4.17 |                |  |                      | 45,472  |                   |   | 774   |  | 3.41 |  
|                                                                                 |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Total interest-bearing deposits                                                  |  |                           | 110,261 |                      |      | 2,055             |  | 3.73 |                |  |                      | 85,166  |                   |   | 1,131 |  | 2.66 |  
|                                                                                 |  |                           |         |                      |      |                  
|Federal funds purchased                                                          |  |                           | 305     |                      |      | 7                 |  | 4.59 |                |  |                      | 321     |                   |   | 5     |  | 3.12 |  
|                                                                                 |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Total interest-bearing liabilities                                               |  |                           | 110,566 |                      |      | 2,062             |  | 3.73 |                |  |                      | 85,487  |                   |   | 1,136 |  | 2.66 |  
|                                                                                 |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Noninterest-bearing liabilities                                                  |  |                           | 10,841  |                      |      |                   |  |      |                |  |                      | 10,121  |                   |   |       |  |      |  
|Stockholders equity                                                             |  |                           | 14,769  |                      |      |                   |  |      |                |  |                      | 13,876  |                   |   |       |  |      |  
|                                                                                 |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Total liabilities and stockholders equity                                       |  | $                         | 136,176 |                      |      |                   |  |      |                |  | $                    | 109,484 |                   |   |       |  |      |  
|                                                                                 |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Net interest income                                                              |  |                           |         |                      | $    | 2,367             |  |      |                |  |                      |         |                   | $ | 1,978 |  |      |  
|                                                                                 |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Interest-rate spread (2)                                                         |  |                           |         |                      |      |                   |  | 3.09 | %              |  |                      |         |                   |   |       |  | 3.32 | %
|                                                                                 |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Net interest margin (3)                                                          |  |                           |         |                      |      |                   |  | 3.65 | %              |  |                      |         |                   |   |       |  | 3.80 | %
|                                                                                 |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  
|Ratio of average interest-earning assets to average interest-bearing liabilities |  |                           | 1.17    |                      |      |                   |  |      |                |  |                      | 1.22    |                   |   |       |  |      |  
|                                                                                 |  |                           |         |                      |      |                   |  |      |                |  |                      |         |                   |   |       |  |      |  

---

|(1) | Includes Federal Home Loan Bank stock, Federal Reserve Bank stock, federal funds sold and interest-bearing deposits.
|--- | --------------------------------------------------------------------------------------------------------------------

|(2) | Interest-rate spread represents the difference between the average yield on interest-earning assets and the average rate of interest-bearing liabilities.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | Net interest margin is net interest income divided by average interest-earning assets.
|--- | --------------------------------------------------------------------------------------



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##### Table of Contents

SUNCOAST BANCORP, INC. AND SUBSIDIARY

Comparison of the Three-Month Periods Ended June 30, 2006 and 2005

General.
Net earnings applicable to common shareholders for the three months ended June 30, 2006 was $62,000, or $.06 basic and diluted earnings per share, compared to net earnings applicable to common shareholders of $93,000, or $.13 basic and $.12
diluted earnings per share, for the three months ended June 30, 2005. The decrease in the Companys net earnings applicable to common shareholders was primarily due to an increase in legal fees and other professional fees associated with
the upcoming merger.

Interest Income and Expense. Interest income increased by $645,000 from $1,651,000 for the three months ended
June 30, 2005 to $2,296,000 for the three months ended June 30, 2006. Interest income on loans increased $663,000, primarily due to an increase in the average loan portfolio balance from $93.3 million for the three months ended
June 30, 2005 to $120.5 million for the comparable period in 2006. The weighted average yield on loans also increased in 2006. Interest on securities increased $10,000, primarily due to an increase in the average securities balance to $9
million in 2006 from $8.8 million in 2005, the average yield also increased to 4.26% in 2006 from 3.92% in 2005.

Interest expense on interest-bearing
deposits increased to $1,110,000 for the three months ended June 30, 2006 compared to $637,000 for the three months ended June 30, 2005. Interest expense on interest-bearing deposits increased primarily due to the increase in the average
balance from $90.1 million in 2005 to $112.8 million in 2006. The weighted average rate paid also increased in 2006.

Provision for Loan
Losses. The provision for loan losses is charged to earnings to bring the total allowance to a level deemed appropriate by management and is based upon historical experience, the volume and type of lending conducted by the Company, industry
standards, the amount of nonperforming loans, general economic conditions, particularly as they relate to the Companys market areas, and other factors related to the collectibility of the Companys loan portfolio. The provision for loan
losses was $71,000 for the three months ended June 30, 2006 compared to $60,000 for the comparable period in 2005. Management believes the balance in the allowance for loan losses of $1,343,000 at June 30, 2006 is adequate.

Noninterest Income.Noninterest income increased to $41,000 during the three month period ended June 30, 2006 compared to $25,000 for the same period
in 2005 primarily due to fees earned on brokerage services.

Noninterest Expenses. Noninterest expenses increased $286,000, or 45.8%, during
the three-month period ended June 30, 2006 compared to the same period in 2005, primarily due to the growth of the Company and fees related to the upcoming merger.

Income Taxes. Income taxes for the three months ended June 30, 2006 were $93,000 (an effective rate of 38%) compared to income taxes of $133,000 (an effective rate of 38%) for the comparable 2005
period.



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SUNCOAST BANCORP, INC. AND SUBSIDIARY

Comparison of the Six-Month Periods Ended June 30, 2006 and 2005

General.
Net earnings applicable to common shareholders for the six months ended June 30, 2006 was $172,000, or $.16 basic and diluted earnings per share compared to a net earnings applicable to common shareholders of $136,000, or $.18 basic and diluted
earnings per share, for the six months ended June 30, 2005. The increase in the Companys net earnings applicable to common shareholders was primarily due to an increase in net interest income and a decrease in preferred stock dividends,
partially offset by an increase in noninterest expenses.

Interest Income and Expense. Interest income increased to $4,429,000 for the six
months ended June 30, 2006, from $3,114,000 for the six months ended June 30, 2005. Interest income on loans increased $1,306,000, primarily due to an increase in the average loan portfolio balance from $90.0 million for the six months
ended June 30, 2005 to $117.7 million for the comparable period in 2006. The weighted average yield on loans also increased in 2006. Interest on securities increased $20,000, primarily due to an increase in the average securities balance to
$9.3 million in 2006 from $9.0 million in 2005. The weighted average also increased yield from 3.91% in 2005 to 4.24% in 2006.

Interest expense on
interest-bearing deposits increased to $2,055,000 for the six months ended June 30, 2006 compared to $1,131,000 for the six months ended June 30, 2005. Interest expense on interest-bearing deposits increased primarily due to an increase in
the average balance from $85.2 million in 2005 to $110.3 million in 2006. The weighted average rate paid on interest bearing deposits also increased in 2006.

Provision for Loan Losses. The provision for loan losses is charged to earnings to bring the total allowance to a level deemed appropriate by management and is based upon historical experience, the volume and type of lending
conducted by the Company, industry standards, the amount of nonperforming loans, general economic conditions, particularly as they relate to the Companys market areas, and other factors related to the collectibility of the Companys loan
portfolio. The provision for loan losses was $149,000 for the six months ended June 30, 2006 compared to $180,000 for the comparable period in 2005. Management believes the balance in the allowance for loan losses of $1,343,000 at June 30,
2006 is adequate.

Noninterest Income.Noninterest income increased to $71,000 during the six month period ended June 30, 2006 compared
to $50,000 for the same period in 2005 primarily due to brokerage service fees.

Noninterest Expenses. Noninterest expenses increased
$492,000, or 40.03%, during the six-month period ended June 30, 2006 compared to the same period in 2005, primarily due to the growth of the Company and due to merger related expenses.

Income Taxes. Income taxes for the six months ended June 30, 2006 was $216,000 (an effective rate of 38%) compared to income taxes of $235,000 (an
effective rate of 38%) for the comparable 2005 period.



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SUNCOAST BANCORP, INC. AND SUBSIDIARY

Item 3. Controls and Procedures



|a. | Evaluation of disclosure controls and procedures. The Company maintains controls and procedures designed to ensure that information required to be disclosed in the reports
that the Company files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission. Based upon their
evaluation of those controls and procedures as of June 30, 2006, the Chief Executive Officer and Chief Financial Officer of the Company concluded that the Companys disclosure controls and procedures were effective.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|b. | Changes in internal controls. There were no changes in the Companys internal control over financial reporting during the Companys last fiscal quarter that have
materially affected, or are reasonably likely to materially affect, the Companys internal control over financial reporting.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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##### Table of Contents

SUNCOAST BANCORP, INC. AND SUBSIDIARY

PART II. OTHER INFORMATION

Item 6. Exhibits

The following exhibits are filed with this report:



|            |  |                                                                                                                                                                                                                                                                       
|----------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |  | Description of Exhibit                                                                                                                                                                                                                                                
|2.1         |  | Agreement and Plan of Merger by and between NBC Capital Corporation and SunCoast Bancorp, Inc., dated as of March 16, 2006 (incorporated by reference to Exhibit 99.1 of the Current Report on
Form 8-K dated March 16, 2006 and filed by SunCoast on March 17, 2006).
|            | 
|3.1         |  | Restated Articles of Incorporation of SunCoast Bancorp, Inc. (incorporated by reference to Exhibit 3.1 to SunCoasts Registration Statement No. 333-70231 (the Registration
Statement)).                                                                            
|            | 
|3.1.1       |  | Articles of Amendment of the Restated Articles of Incorporation of SunCoast Bancorp, Inc. establishing Convertible Preferred Stock (incorporated by reference to Exhibit 3.3 of the Form 10-QSB
filed by SunCoast for the quarter ended June 30, 2003).               
|            | 
|3.1.2       |  | Articles of Amendment of the Restated Articles of Incorporation of SunCoast Bancorp, Inc. establishing 2004 Convertible Preferred Stock. (incorporated by reference to Exhibit 3.1.2 of the Form
10-QSB filed by SunCoast for the quarter ended March 31, 2005).      
|            | 
|3.2         |  | Bylaws of SunCoast Bancorp, Inc. (incorporated by reference to Exhibit 3.2 to the Registration Statement).                                                                                                                                                            
|            | 
|31.1        |  | Certification of Chief Executive Officer required by Rule 13a-14(a)/15d-14(a) under the Exchange Act                                                                                                                                                                  
|            | 
|31.2        |  | Certification of Chief Financial Officer required by Rule 13a-14(a)/15d-14(a) under the Exchange Act                                                                                                                                                                  
|            | 
|32.1        |  | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of Sarbanes-Oxley Act of 2002                                                                                                                         
|            | 
|32.2        |  | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of Sarbanes-Oxley Act of 2002                                                                                                                         



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SUNCOAST BANCORP, INC. AND SUBSIDIARY

SIGNATURES

In accordance with the requirements of the Securities Exchange Act of 1934, the Registrant caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.



|                      |  |                        |  |                                                        
|--------------------- |  | ---------------------- |  | -------------------------------------------------------
|                      |  | SUNCOAST BANCORP, INC.
|                      |  | (Registrant)          
|                      |  |                       
|Date: August 11, 2006 |  | By:                    |  | /s/ John T. Stafford                                   
|                      |  |                        |  | John T. Stafford, President and Chief Executive Officer
|                      |  |                       
|Date: August 11, 2006 |  | By:                    |  | /s/ John S. Wilks                                      
|                      |  |                        |  | John S. Wilks, Chief Financial Officer                 
|                      |  |                        |  | (Principal Financial Officer and Principal             
|                      |  |                        |  | Accounting Officer)                                    



22