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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 September 30, 2005



| ̈ | 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, Including Area Code)





(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 12, 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 |  | 1,053,476 shares               
|(class)                                |  | Outstanding at October 26, 2005



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



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SUNCOAST BANCORP, INC. AND SUBSIDIARY



INDEX



|                                                                                                                                 |  |      
|-------------------------------------------------------------------------------------------------------------------------------- |  | -----
|                                                                                                                                 |  | Page 
|PART I. 
FINANCIAL INFORMATION                                                                                                   |  |      
|                                                                                                                                 | 
|Item 1. 
Financial Statements                                                                                                    |  |      
|                                                                                                                                 | 
|Condensed Consolidated Balance Sheets - At September 30, 2005 (unaudited) and At December 31, 2004                               |  | 2    
|                                                                                                                                 | 
|Condensed Consolidated Statements of Earnings - Three and Nine Months Ended September 30, 2005 and 2004 (unaudited)              |  | 3    
|                                                                                                                                 | 
|Condensed Consolidated Statements of Changes in Stockholders Equity - Nine Months Ended September 30, 2005 and 2004 (unaudited) |  | 4    
|                                                                                                                                 | 
|Condensed Consolidated Statements of Cash Flows - Nine Months Ended September 30, 2005 and 2004 (unaudited)                      |  | 5    
|                                                                                                                                 | 
|Notes to Condensed Consolidated Financial Statements (unaudited)                                                                 |  | 6-10 
|                                                                                                                                 | 
|Review by Independent Registered Public Accounting Firm                                                                          |  | 11   
|                                                                                                                                 | 
|Report of Independent Registered Public Accounting Firm                                                                          |  | 12   
|                                                                                                                                 | 
|Item 2.
Managements Discussion and Analysis of Financial Condition and Results of Operations                                    |  | 13-18
|                                                                                                                                 | 
|Item 3. 
Controls and Procedures                                                                                                 |  | 19   
|                                                                                                                                 | 
|PART II. 
OTHER INFORMATION                                                                                                      |  |      
|                                                                                                                                 | 
|Item 6.
Exhibits                                                                                                                 |  | 20   
|                                                                                                                                 | 
|SIGNATURES                                                                                                                       |  | 21   



1



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SUNCOAST BANCORP, INC. AND SUBSIDIARY



PART I. FINANCIAL INFORMATION



Item 1. Financial Statements



Condensed Consolidated Balance Sheets

($ in thousands, except per share amounts)



|                                                                                                                                                                                                                                                                                                                    |  |                   |         |   |                  |         |  
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------- | ------- | - | ---------------- | ------- | -
|                                                                                                                                                                                                                                                                                                                    |  | September 30,2005 |         |   | December 31,2004 |        
|                                                                                                                                                                                                                                                                                                                    |  | (Unaudited)       |         |   |                  |        
|Assets                                                                                                                                                                                                                                                                                                              |  |                   |         |   |                  |         |  
|                                                                                                                                                                                                                                                                                                                    |  |                  
|Cash and due from banks                                                                                                                                                                                                                                                                                             |  | $                 | 2,953   |   |                  | 3,427   |  
|Interest-bearing deposits with banks                                                                                                                                                                                                                                                                                |  |                   | 28      |   |                  | 58      |  
|Federal funds sold                                                                                                                                                                                                                                                                                                  |  |                   | 1,622   |   |                  | 3,393   |  
|                                                                                                                                                                                                                                                                                                                    |  |                   |         |   |                  |         |  
|Total cash and cash equivalents                                                                                                                                                                                                                                                                                     |  |                   | 4,603   |   |                  | 6,878   |  
|                                                                                                                                                                                                                                                                                                                    |  |                  
|Securities available for sale                                                                                                                                                                                                                                                                                       |  |                   | 10,131  |   |                  | 9,446   |  
|Loans, net of allowance for loan losses of $1,099 and $864                                                                                                                                                                                                                                                          |  |                   | 103,864 |   |                  | 81,442  |  
|Premises and equipment, net                                                                                                                                                                                                                                                                                         |  |                   | 2,358   |   |                  | 1,871   |  
|Federal Reserve Bank stock, at cost                                                                                                                                                                                                                                                                                 |  |                   | 401     |   |                  | 225     |  
|Federal Home Loan Bank stock, at cost                                                                                                                                                                                                                                                                               |  |                   | 202     |   |                  | 166     |  
|Deferred tax assets                                                                                                                                                                                                                                                                                                 |  |                   | 133     |   |                  | 398     |  
|Accrued interest receivable                                                                                                                                                                                                                                                                                         |  |                   | 436     |   |                  | 315     |  
|Other assets                                                                                                                                                                                                                                                                                                        |  |                   | 359     |   |                  | 152     |  
|                                                                                                                                                                                                                                                                                                                    |  |                   |         |   |                  |         |  
|Total assets                                                                                                                                                                                                                                                                                                        |  | $                 | 122,487 |   |                  | 100,893 |  
|                                                                                                                                                                                                                                                                                                                    |  |                   |         |   |                  |         |  
|Liabilities and Stockholders Equity                                                                                                                                                                                                                                                                                |  |                   |         |   |                  |         |  
|                                                                                                                                                                                                                                                                                                                    |  |                  
|Liabilities:                                                                                                                                                                                                                                                                                                        |  |                   |         |   |                  |         |  
|Noninterest-bearing demand deposits                                                                                                                                                                                                                                                                                 |  |                   | 10,244  |   |                  | 8,883   |  
|Savings and NOW deposits                                                                                                                                                                                                                                                                                            |  |                   | 10,055  |   |                  | 7,699   |  
|Money-market deposits                                                                                                                                                                                                                                                                                               |  |                   | 29,089  |   |                  | 32,908  |  
|Time deposits                                                                                                                                                                                                                                                                                                       |  |                   | 58,275  |   |                  | 35,346  |  
|                                                                                                                                                                                                                                                                                                                    |  |                   |         |   |                  |         |  
|Total deposits                                                                                                                                                                                                                                                                                                      |  |                   | 107,663 |   |                  | 84,836  |  
|                                                                                                                                                                                                                                                                                                                    |  |                  
|Federal funds purchased                                                                                                                                                                                                                                                                                             |  |                   |        |   |                  | 1,987   |  
|Other liabilities                                                                                                                                                                                                                                                                                                   |  |                   | 595     |   |                  | 277     |  
|                                                                                                                                                                                                                                                                                                                    |  |                   |         |   |                  |         |  
|Total liabilities                                                                                                                                                                                                                                                                                                   |  |                   | 108,258 |   |                  | 87,100  |  
|                                                                                                                                                                                                                                                                                                                    |  |                   |         |   |                  |         |  
|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 and $10 liquidation value, of which 480,000 shares and 720,975 shares are issued and outstanding as of September 30, 2005 and December 31, 2004, respectively |  |                   | 5       |   |                  | 7       |  
|Common stock, par value $0.1 per share, 10,000,000 shares authorized; 1,053,476 and 734,981 shares issued and outstanding as of
September 30, 2005 and December 31, 2004, respectively                                                                                                                              |  |                   | 11      |   |                  | 7       |  
|Additional paid-in capital                                                                                                                                                                                                                                                                                          |  |                   | 15,317  |   |                  | 15,109  |  
|Accumulated deficit                                                                                                                                                                                                                                                                                                 |  |                   | (1,005  | ) |                  | (1,294  | )
|Accumulated other comprehensive (loss)                                                                                                                                                                                                                                                                              |  |                   | (99     | ) |                  | (36     | )
|                                                                                                                                                                                                                                                                                                                    |  |                   |         |   |                  |         |  
|Total stockholders equity                                                                                                                                                                                                                                                                                          |  |                   | 14,229  |   |                  | 13,793  |  
|                                                                                                                                                                                                                                                                                                                    |  |                   |         |   |                  |         |  
|Total liabilities and stockholders equity                                                                                                                                                                                                                                                                          |  | $                 | 122,487 |   |                  | 100,893 |  
|                                                                                                                                                                                                                                                                                                                    |  |                   |         |   |                  |         |  



See
Accompanying Notes to Condensed Consolidated Financial Statements.



2



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SUNCOAST BANCORP, INC. AND SUBSIDIARY



Condensed Consolidated Statements of Earnings (Unaudited)

(In thousands, except per share amounts)



|                                                    |  |                                 |       |   |                                |       |   |      |       |   |      |       |  
|--------------------------------------------------- |  | ------------------------------- | ----- | - | ------------------------------ | ----- | - | ---- | ----- | - | ---- | ----- | -
|                                                    |  | Three Months EndedSeptember 30, |       |   | Nine Months EndedSeptember 30, |      
|                                                    |  | 2005                            |       |   | 2004                           |       |   | 2005 |       |   | 2004 |      
|Interest income:                                    |  |                                 |       |   |                                |       |   |      |       |   |      |       |  
|Loans                                               |  | $                               | 1,671 |   |                                | 1,100 |   |      | 4,529 |   |      | 3,007 |  
|Securities                                          |  |                                 | 98    |   |                                | 93    |   |      | 274   |   |      | 285   |  
|Other                                               |  |                                 | 96    |   |                                | 26    |   |      | 176   |   |      | 56    |  
|                                                    |  |                                 |       |   |                                |       |   |      |       |   |      |       |  
|Total interest income                               |  |                                 | 1,865 |   |                                | 1,219 |   |      | 4,979 |   |      | 3,348 |  
|                                                    |  |                                 |       |   |                                |       |   |      |       |   |      |       |  
|Interest expense:                                   |  |                                 |       |   |                                |       |   |      |       |   |      |       |  
|Deposits                                            |  |                                 | 730   |   |                                | 432   |   |      | 1,861 |   |      | 1,199 |  
|Other borrowings                                    |  |                                 |      |   |                                |      |   |      | 5     |   |      | 1     |  
|                                                    |  |                                 |       |   |                                |       |   |      |       |   |      |       |  
|Total interest expense                              |  |                                 | 730   |   |                                | 432   |   |      | 1,866 |   |      | 1,200 |  
|                                                    |  |                                 |       |   |                                |       |   |      |       |   |      |       |  
|Net interest income                                 |  |                                 | 1,135 |   |                                | 787   |   |      | 3,113 |   |      | 2,148 |  
|                                                    |  |                                 |       |  
|Provision for loan losses                           |  |                                 | 55    |   |                                | 37    |   |      | 235   |   |      | 159   |  
|                                                    |  |                                 |       |   |                                |       |   |      |       |   |      |       |  
|Net interest income after provision for loan losses |  |                                 | 1,080 |   |                                | 750   |   |      | 2,878 |   |      | 1,989 |  
|                                                    |  |                                 |       |   |                                |       |   |      |       |   |      |       |  
|Noninterest income:                                 |  |                                 |       |   |                                |       |   |      |       |   |      |       |  
|Service charges on deposit accounts                 |  |                                 | 10    |   |                                | 12    |   |      | 29    |   |      | 36    |  
|Other service charges and fees                      |  |                                 | 20    |   |                                | 17    |   |      | 50    |   |      | 46    |  
|Gain on sale of securities available for sale       |  |                                 |      |   |                                |      |   |      |      |   |      | 2     |  
|Other                                               |  |                                 | 1     |   |                                |      |   |      | 2     |   |      |      |  
|                                                    |  |                                 |       |   |                                |       |   |      |       |   |      |       |  
|Total noninterest income                            |  |                                 | 31    |   |                                | 29    |   |      | 81    |   |      | 84    |  
|                                                    |  |                                 |       |   |                                |       |   |      |       |   |      |       |  
|Noninterest expense:                                |  |                                 |       |   |                                |       |   |      |       |   |      |       |  
|Salaries and employee benefits                      |  |                                 | 366   |   |                                | 335   |   |      | 1,023 |   |      | 947   |  
|Occupancy expense                                   |  |                                 | 108   |   |                                | 101   |   |      | 311   |   |      | 298   |  
|Professional fees                                   |  |                                 | 62    |   |                                | 38    |   |      | 182   |   |      | 127   |  
|Data processing                                     |  |                                 | 41    |   |                                | 32    |   |      | 124   |   |      | 106   |  
|Stationery and supplies                             |  |                                 | 27    |   |                                | 23    |   |      | 68    |   |      | 67    |  
|Other                                               |  |                                 | 62    |   |                                | 42    |   |      | 187   |   |      | 118   |  
|                                                    |  |                                 |       |   |                                |       |   |      |       |   |      |       |  
|Total noninterest expense                           |  |                                 | 666   |   |                                | 571   |   |      | 1,895 |   |      | 1,663 |  
|                                                    |  |                                 |       |   |                                |       |   |      |       |   |      |       |  
|Earnings before income taxes                        |  |                                 | 445   |   |                                | 208   |   |      | 1,064 |   |      | 410   |  
|                                                    |  |                                 |       |  
|Income tax provision                                |  |                                 | 169   |   |                                | 79    |   |      | 404   |   |      | 156   |  
|                                                    |  |                                 |       |   |                                |       |   |      |       |   |      |       |  
|Net earnings                                        |  |                                 | 276   |   |                                | 129   |   |      | 660   |   |      | 254   |  
|                                                    |  |                                 |       |  
|Preferred stock dividends                           |  |                                 | (123  | ) |                                | (34   | ) |      | (371  | ) |      | (109  | )
|                                                    |  |                                 |       |   |                                |       |   |      |       |   |      |       |  
|Net earnings applicable to common stockholders      |  | $                               | 153   |   |                                | 95    |   |      | 289   |   |      | 145   |  
|                                                    |  |                                 |       |   |                                |       |   |      |       |   |      |       |  
|Earnings per share:                                 |  |                                 |       |   |                                |       |   |      |       |   |      |       |  
|Basic                                               |  | $                               | .21   |   |                                | .13   |   |      | .39   |   |      | .20   |  
|                                                    |  |                                 |       |   |                                |       |   |      |       |   |      |       |  
|Diluted                                             |  | $                               | .17   |   |                                | .12   |   |      | .38   |   |      | .20   |  
|                                                    |  |                                 |       |   |                                |       |   |      |       |   |      |       |  
|Dividends per share                                 |  | $                               |      |   |                                |      |   |      |      |   |      |      |  
|                                                    |  |                                 |       |   |                                |       |   |      |       |   |      |       |  



See
Accompanying Notes to Condensed Consolidated Financial Statements.



3



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SUNCOAST BANCORP, INC. AND SUBSIDIARY



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



For the Nine Months Ended September 30, 2005 and 2004

(In thousands)



|                                                                                         |  |                |    |   |             |    |                           |        |   |                    |        |   |                                      |     |   |                          |        |  
|---------------------------------------------------------------------------------------- |  | -------------- | -- | - | ----------- | -- | ------------------------- | ------ | - | ------------------ | ------ | - | ------------------------------------ | --- | - | ------------------------ | ------ | -
|                                                                                         |  | PreferredStock |    |   | CommonStock |    | Additional Paid-InCapital |        |   | AccumulatedDeficit |        |   | AccumulatedOther Comprehensive(Loss) |     |   | TotalStockholdersEquity |       
|Balance at December 31, 2003                                                             |  | $              | 2  |   |             | 7  |                           | 8,611  |   |                    | (1,125 | ) |                                      | (43 | ) |                          | 7,452  |  
|                                                                                         |  |                |    |   |             |    |                           |        |   |                    |        |   |                                      |     |   |                          |        |  
|Comprehensive income:                                                                    |  |                |    |   |             |    |                           |        |   |                    |        |   |                                      |     |   |                          |        |  
|Net earnings (unaudited)                                                                 |  |                |   |   |             |   |                           |       |   |                    | 254    |   |                                      |    |   |                          | 254    |  
|                                                                                         |  |                |    |   |             |   
|Net change in unrealized loss on securities available for sale, net of taxes (unaudited) |  |                |   |   |             |   |                           |       |   |                    |       |   |                                      | 5   |   |                          | 5      |  
|                                                                                         |  |                |    |   |             |    |                           |        |   |                    |        |   |                                      |     |   |                          |        |  
|Comprehensive income (unaudited)                                                         |  |                |    |   |             |    |                           |        |   |                    |        |   |                                      |     |   |                          | 259    |  
|                                                                                         |  |                |    |   |             |    |                           |        |   |                    |        |   |                                      |     |   |                          |        |  
|Common stock dividend (unaudited)                                                        |  |                |   |   |             |   |                           | 436    |   |                    | (436   | ) |                                      |    |   |                          |       |  
|                                                                                         |  |                |    |   |             |   
|Preferred stock dividend (unaudited)                                                     |  |                |   |   |             |   |                           | 155    |   |                    | (109   | ) |                                      |    |   |                          | 46     |  
|                                                                                         |  |                |    |   |             |    |                           |        |   |                    |        |   |                                      |     |   |                          |        |  
|Balance at September 30, 2004 (unaudited)                                                |  | $              | 2  |   |             | 7  |                           | 9,202  |   |                    | (1,416 | ) |                                      | (38 | ) |                          | 7,757  |  
|                                                                                         |  |                |    |   |             |    |                           |        |   |                    |        |   |                                      |     |   |                          |        |  
|Balance at December 31, 2004                                                             |  |                | 7  |   |             | 7  |                           | 15,109 |   |                    | (1,294 | ) |                                      | (36 | ) |                          | 13,793 |  
|                                                                                         |  |                |    |   |             |    |                           |        |   |                    |        |   |                                      |     |   |                          |        |  
|Comprehensive income:                                                                    |  |                |    |   |             |    |                           |        |   |                    |        |   |                                      |     |   |                          |        |  
|Net earnings (unaudited)                                                                 |  |                |   |   |             |   |                           |       |   |                    | 660    |   |                                      |    |   |                          | 660    |  
|                                                                                         |  |                |    |   |             |   
|Net change in unrealized loss on securities available for sale, net of taxes (unaudited) |  |                |   |   |             |   |                           |       |   |                    |       |   |                                      | (63 | ) |                          | (63    | )
|                                                                                         |  |                |    |   |             |    |                           |        |   |                    |        |   |                                      |     |   |                          |        |  
|Comprehensive income (unaudited)                                                         |  |                |    |   |             |    |                           |        |   |                    |        |   |                                      |     |   |                          | 597    |  
|                                                                                         |  |                |    |   |             |    |                           |        |   |                    |        |   |                                      |     |   |                          |        |  
|Common stock grant (unaudited)                                                           |  |                |   |   |             |   |                           | 75     |   |                    |       |   |                                      |    |   |                          | 75     |  
|                                                                                         |  |                |    |   |             |   
|Preferred stock dividend (unaudited)                                                     |  |                |   |   |             |   |                           | 135    |   |                    | (371   | ) |                                      |    |   |                          | (236   | )
|                                                                                         |  |                |    |   |             |   
|Series 2003 preferred stock conversion to common (unaudited)                             |  |                | (2 | ) |             | 4  |                           | (2     | ) |                    |       |   |                                      |    |   |                          |       |  
|                                                                                         |  |                |    |   |             |    |                           |        |   |                    |        |   |                                      |     |   |                          |        |  
|Balance at September 30, 2005 (unaudited)                                                |  | $              | 5  |   |             | 11 |                           | 15,317 |   |                    | (1,005 | ) |                                      | (99 | ) |                          | 14,229 |  
|                                                                                         |  |                |    |   |             |    |                           |        |   |                    |        |   |                                      |     |   |                          |        |  



See
Accompanying Notes to Condensed Consolidated Financial Statements.



4



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SUNCOAST BANCORP, INC. AND SUBSIDIARY



Condensed Consolidated Statements of Cash Flows (Unaudited)

(In thousands)



|                                                                                                               |  |                                |         |   |      |         |  
|-------------------------------------------------------------------------------------------------------------- |  | ------------------------------ | ------- | - | ---- | ------- | -
|                                                                                                               |  | Nine Months EndedSeptember 30, |        
|                                                                                                               |  | 2005                           |         |   | 2004 |        
|Cash flows from operating activities:                                                                          |  |                                |         |   |      |         |  
|Net earnings                                                                                                   |  | $                              | 660     |   |      | 254     |  
|Adjustments to reconcile net earnings to net cash provided by operating activities:                            |  |                                |         |   |      |         |  
|Depreciation                                                                                                   |  |                                | 85      |   |      | 109     |  
|Provision for loan losses                                                                                      |  |                                | 235     |   |      | 159     |  
|Net amortization of loan fees and costs                                                                        |  |                                | 40      |   |      | 15      |  
|Provision for deferred income taxes                                                                            |  |                                | 304     |   |      | 156     |  
|Increase in accrued interest receivable                                                                        |  |                                | (121    | ) |      | (80     | )
|Increase in other assets                                                                                       |  |                                | (207    | ) |      | (57     | )
|Increase in other liabilities                                                                                  |  |                                | 157     |   |      | 61      |  
|                                                                                                               |  |                                |         |   |      |         |  
|Net cash provided by operating activities                                                                      |  |                                | 1,153   |   |      | 617     |  
|                                                                                                               |  |                                |         |   |      |         |  
|Cash flows from investing activities:                                                                          |  |                                |         |   |      |         |  
|Purchase of securities available for sale                                                                      |  |                                | (1,958  | ) |      | (1,991  | )
|Principal repayments of securities available for sale                                                          |  |                                | 1,171   |   |      | 1,327   |  
|Proceeds from sale of securities available for sale                                                            |  |                                |        |   |      | 1,000   |  
|Purchase of Federal Home Loan Bank stock                                                                       |  |                                | (36     | ) |      | (53     | )
|Purchase of Federal Reserve Bank stock                                                                         |  |                                | (176    | ) |      | (6      | )
|Net increase in loans                                                                                          |  |                                | (22,697 | ) |      | (13,182 | )
|Purchase of premises and equipment                                                                             |  |                                | (572    | ) |      | (160    | )
|                                                                                                               |  |                                |         |   |      |         |  
|Net cash used in investing activities                                                                          |  |                                | (24,268 | ) |      | (13,065 | )
|                                                                                                               |  |                                |         |   |      |         |  
|Cash flows from financing activities:                                                                          |  |                                |         |   |      |         |  
|Net increase in deposits                                                                                       |  |                                | 22,827  |   |      | 16,185  |  
|Net decrease in federal funds purchased                                                                        |  |                                | (1,987  | ) |      | (501    | )
|                                                                                                               |  |                                |         |   |      |         |  
|Net cash provided by financing activities                                                                      |  |                                | 20,840  |   |      | 15,684  |  
|                                                                                                               |  |                                |         |   |      |         |  
|Net (decrease) increase in cash and cash equivalents                                                           |  |                                | (2,275  | ) |      | 3,236   |  
|                                                                                                               |  |                               
|Cash and cash equivalents at beginning of period                                                               |  |                                | 6,878   |   |      | 10,413  |  
|                                                                                                               |  |                                |         |   |      |         |  
|Cash and cash equivalents at end of period                                                                     |  | $                              | 4,603   |   |      | 13,649  |  
|                                                                                                               |  |                                |         |   |      |         |  
|Supplemental disclosure of cash flow information:                                                              |  |                                |         |   |      |         |  
|Cash paid during the period for:                                                                               |  |                                |         |   |      |         |  
|Interest                                                                                                       |  | $                              | 1,841   |   |      | 1,166   |  
|                                                                                                               |  |                                |         |   |      |         |  
|Income taxes                                                                                                   |  | $                              | 35      |   |      |        |  
|                                                                                                               |  |                                |         |   |      |         |  
|Noncash transactions:                                                                                          |  |                                |         |   |      |         |  
|Preferred stock dividend paid                                                                                  |  | $                              | 135     |   |      | 155     |  
|                                                                                                               |  |                                |         |   |      |         |  
|Preferred stock dividend accrued, beginning of period                                                          |  | $                              | 371     |   |      | 109     |  
|                                                                                                               |  |                                |         |   |      |         |  
|Common stock granted as payment for services                                                                   |  | $                              | 75      |   |      |        |  
|                                                                                                               |  |                                |         |   |      |         |  
|Accumulated other comprehensive income, change in unrealized loss on securities available for sale, net of tax |  | $                              | (63     | ) |      | 5       |  
|                                                                                                               |  |                                |         |   |      |         |  



See
Accompanying Notes to Condensed Consolidated Financial Statements.



5



---

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 two banking offices located in Sarasota County, 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 September 30, 2005, the results of operations for the three- and nine-month periods ended
September 30, 2005 and 2004 and cash flows for the nine month periods ended September 30, 2005 and 2004. The results of operations for the three- and nine- month periods ended September 30, 2005 are not necessarily indicative of the
results to be expected for the year ending December 31, 2005.



(2) Loan
Impairment and Loan Losses



No loans were identified as
impaired at or during the three and nine months ended September 30, 2005 and 2004. The activity in the allowance for loan losses is as follows (in thousands):



|                               |  |                                 |       |                                |     |      |       |      |    
|------------------------------ |  | ------------------------------- | ----- | ------------------------------ | --- | ---- | ----- | ---- | ---
|                               |  | Three Months EndedSeptember 30, |       | Nine Months EndedSeptember 30,
|                               |  | 2005                            |       | 2004                           |     | 2005 |       | 2004
|Balance at beginning of period |  | $                               | 1,044 |                                | 776 |      | 864   |      | 654
|Provision charged to earnings  |  |                                 | 55    |                                | 37  |      | 235   |      | 159
|                               |  |                                 |       |                                |     |      |       |      |    
|Balance at end of period       |  | $                               | 1,099 |                                | 813 |      | 1,099 |      | 813
|                               |  |                                 |       |                                |     |      |       |      |    



There were no
nonaccrual loans or loans past due ninety days or more, but still accruing at September 30, 2005 or 2004.



(continued)



6



---

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. For the nine months ended September 30, 2005 and 2004,
the preferred stock is not considered dilutive. All per share amounts reflect the 5% stock dividend declared August 10, 2004. The following table presents the calculations of the weighted-average number of shares for diluted EPS (dollars in
thousands, except share amounts):



|                                                                      |  |          |     |                        |           |                |   |          |  |                        |     |                |           |  |   |    
|--------------------------------------------------------------------- |  | -------- | --- | ---------------------- | --------- | -------------- | - | -------- |  | ---------------------- | --- | -------------- | --------- |  | - | ---
|                                                                      |  | 2005     |     | 2004                  
|                                                                      |  | Earnings |     | Weighted-AverageShares |           | PerShareAmount |   | Earnings |  | Weighted-AverageShares |     | PerShareAmount
|Three Months Ended September 30,:                                     |  |          |     |                        |           |                |   |          |  |                        |     |                |           |  |   |    
|Basic EPS:                                                            |  |          |     |                        |           |                |   |          |  |                        |     |                |           |  |   |    
|Net earnings available to common stockholders                         |  | $        | 153 |                        | 742,622   |                | $ | .21      |  | $                      | 95  |                | 734,981   |  | $ | .13
|                                                                      |  |          |     |                        |           |                |   |          |  |                        |     |                |           |  |   |    
|Effect of dilutive securities-                                        |  |          |     |                        |           |                |   |          |  |                        |     |                |           |  |   |    
|Incremental shares from assumed conversion of options                 |  |          |     |                        | 28,814    |                |   |          |  |                        |     |                | 9,005     |  |   |    
|                                                                      |  |          |     |                        |           |                |   |          |  |                        |     |                |           |  |   |    
|Incremental shares from assumed conversion of preferred stock         |  |          | 123 |                        | 865,876   |                |   |          |  |                        | 34  |                | 297,500   |  |   |    
|                                                                      |  |          |     |                        |           |                |   |          |  |                        |     |                |           |  |   |    
|Diluted EPS:                                                          |  |          |     |                        |           |                |   |          |  |                        |     |                |           |  |   |    
|Net earnings available to common stockholders and assumed conversions |  | $        | 276 |                        | 1,637,312 |                | $ | .17      |  | $                      | 129 |                | 1,041,486 |  | $ | .12
|                                                                      |  |          |     |                        |           |                |   |          |  |                        |     |                |           |  |   |    
|Nine Months Ended September 30,:                                      |  |          |     |                        |           |                |   |          |  |                        |     |                |           |  |   |    
|Basic EPS:                                                            |  |          |     |                        |           |                |   |          |  |                        |     |                |           |  |   |    
|Net earnings available to common stockholders                         |  | $        | 289 |                        | 738,856   |                | $ | .39      |  | $                      | 145 |                | 734,981   |  | $ | .20
|                                                                      |  |          |     |                        |           |                |   |          |  |                        |     |                |           |  |   |    
|Effect of dilutive securities-                                        |  |          |     |                        |           |                |   |          |  |                        |     |                |           |  |   |    
|Incremental shares from assumed conversion of options                 |  |          |     |                        | 26,711    |                |   |          |  |                        |     |                | 6,700     |  |   |    
|                                                                      |  |          |     |                        |           |                |   |          |  |                        |     |                |           |  |   |    
|Diluted EPS:                                                          |  |          |     |                        |           |                |   |          |  |                        |     |                |           |  |   |    
|Net earnings available to common stockholders and assumed conversions |  | $        | 289 |                        | 765,567   |                | $ | .38      |  | $                      | 145 |                | 741,681   |  | $ | .20
|                                                                      |  |          |     |                        |           |                |   |          |  |                        |     |                |           |  |   |    



(continued)



7



---

SUNCOAST BANCORP, INC. AND SUBSIDIARY



Notes to Condensed Consolidated Financial Statements (unaudited), Continued



(3) Earnings Per Share, Continued



The following options were excluded from the calculation due to the average
market price being lower than the exercise price:



|                                                       |  |                 |  |                |             |             |      |              |     
|------------------------------------------------------ |  | --------------- |  | -------------- | ----------- | ----------- | ---- | ------------ | ----
|                                                       |  | Number ofShares |  | Exercise Price |             | YearGranted |      | YearExpiring
|For the three and nine months ended September 30, 2005 |  | 6,700           |  | $              | 17.00       |             | 2005 |              | 2015
|                                                       |  |                 |  |                |             |             |      |              |     
|For the nine months ended September 30, 2004           |  | 18,900          |  | $              | 11.38-11.90 |             | 2004 |              | 2014
|                                                       |  |                 |  |                |             |             |      |              |     
|For the three months ended September 30, 2004          |  | 2,100           |  | $              | 11.90       |             | 2004 |              | 2014
|                                                       |  |                 |  |                |             |             |      |              |     



(4) Stock Options



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. All per share amounts reflect the 5% stock dividend declared on August 10, 2004. A total of 58,800 shares of common stock have been reserved under this Plan. At
September 30, 2005, 3,000 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. All per share amounts reflect the 5% stock dividend declared on August 10, 2004. A total of 44,100 shares of common stock have been reserved under this Plan. At September 30, 2005, there were no shares
available for additional grants under this plan ($ in thousands except per share information).



|                                  |  |                 |   |  |                               |             |                                |   |                      |  |   |       |  
|--------------------------------- |  | --------------- | - |  | ----------------------------- | ----------- | ------------------------------ | - | -------------------- |  | - | ----- | -
|                                  |  | Number ofShares |   |  | Range of PerShareOption Price |             | Weighted-AveragePer SharePrice |   | AggregateOptionPrice | 
|Outstanding at December 31, 2004  |  | 90,300          |   |  | $                             | 9.52-11.90  |                                | $ | 9.93                 |  | $ | 896   |  
|Options forfeited                 |  | (2,100          | ) |  |                               | 11.90       |                                |   | 11.90                |  |   | (25   | )
|Options granted                   |  | 11,700          |   |  |                               | 15.00-17.00 |                                |   | 16.14                |  |   | 189   |  
|                                  |  |                 |   |  |                               |             |                                |   |                      |  |   |       |  
|Outstanding at September 30, 2005 |  | 99,900          |   |  | $                             | 9.52-17.00  |                                | $ | 10.61                |  | $ | 1,060 |  
|                                  |  |                 |   |  |                               |             |                                |   |                      |  |   |       |  



Statement of Financial
Accounting Standards (SFAS) No. 123, Accounting for Stock-Based Compensation, as amended by SFAS 148, Accounting for Stock-Based Compensation Transition and Disclosure (collectively SFAS No. 123) encourages all
entities to adopt a fair value based method of accounting for employee stock compensation plans, whereby compensation cost is measured at the grant date based on the value of the award and is recognized over the service period, which is usually the
vesting period. However, it also allows an entity to continue to measure compensation cost for those plans using the intrinsic value based method of accounting prescribed by Accounting Principles Board Opinion No. 25, Accounting for Stock
Issued to Employees (APB No. 25), whereby compensation cost is the excess, if any, of the quoted market price of the stock at the grant date (or other measurement date) over the amount an employee must pay to acquire the stock.



(continued)



8



---

SUNCOAST BANCORP, INC. AND SUBSIDIARY



Notes to Condensed Consolidated Financial Statements (unaudited), Continued



(4) Stock Options, Continued



The Company accounts for its stock option plans under the recognition and
measurement principles of Accounting Principles Board Opinion No. 25. No stock-based employee compensation cost is reflected in net earnings, 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. The following table illustrates the effect on net earnings if the Company had applied the fair value recognition provisions of Statement of Financial Accounting Standards (SFAS) No. 123,
accounting for stock-based compensation, as amended by SFAS No. 148, accounting for stock-based compensation transition and disclosure, to stock-based employee compensation (in thousands, except per share amounts).



|                                                                                                                                       |  |                                 |     |   |                                |     |   |      |     |   |      |     |  
|-------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------- | --- | - | ------------------------------ | --- | - | ---- | --- | - | ---- | --- | -
|                                                                                                                                       |  | Three Months EndedSeptember 30, |     |   | Nine Months EndedSeptember 30, |    
|                                                                                                                                       |  | 2005                            |     |   | 2004                           |     |   | 2005 |     |   | 2004 |    
|Net earnings applicable to common stockholders, as reported                                                                            |  | $                               | 153 |   |                                | 95  |   |      | 289 |   |      | 145 |  
|Deduct: Total stock-based employee compensation determined under the fair value based method for all awards, net of related tax
effect |  |                                 | (11 | ) |                                | (14 | ) |      | (31 | ) |      | (18 | )
|                                                                                                                                       |  |                                 |     |   |                                |     |   |      |     |   |      |     |  
|Proforma net earnings applicable to common stockholders                                                                                |  |                                 | 142 |   |                                | 81  |   |      | 258 |   |      | 127 |  
|                                                                                                                                       |  |                                 |     |  
|Add: Accrued preferred stock dividend as reported In net earnings applicable to common stockholders                                    |  |                                 | 123 |   |                                | 34  |   |      |    |   |      |    |  
|                                                                                                                                       |  |                                 |     |   |                                |     |   |      |     |   |      |     |  
|Proforma net earnings                                                                                                                  |  | $                               | 265 |   |                                | 115 |   |      | 258 |   |      | 127 |  
|                                                                                                                                       |  |                                 |     |   |                                |     |   |      |     |   |      |     |  
|Earnings per share:                                                                                                                    |  |                                 |     |   |                                |     |   |      |     |   |      |     |  
|Basic                                                                                                                                  |  | $                               | .21 |   |                                | .13 |   |      | .39 |   |      | .20 |  
|                                                                                                                                       |  |                                 |     |   |                                |     |   |      |     |   |      |     |  
|Diluted                                                                                                                                |  | $                               | .17 |   |                                | .12 |   |      | .38 |   |      | .20 |  
|                                                                                                                                       |  |                                 |     |   |                                |     |   |      |     |   |      |     |  
|Proforma earnings per share:                                                                                                           |  |                                 |     |   |                                |     |   |      |     |   |      |     |  
|Basic                                                                                                                                  |  | $                               | .19 |   |                                | .11 |   |      | .35 |   |      | .17 |  
|                                                                                                                                       |  |                                 |     |   |                                |     |   |      |     |   |      |     |  
|Diluted                                                                                                                                |  | $                               | .16 |   |                                | .11 |   |      | .34 |   |      | .17 |  
|                                                                                                                                       |  |                                 |     |   |                                |     |   |      |     |   |      |     |  



The fair value of each
option granted is estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions; there were no options granted during the nine months ended September 30, 2005:



|                                                                           |  |                                 |      |   |                                |      |   |      |      |   |      |      |  
|-------------------------------------------------------------------------- |  | ------------------------------- | ---- | - | ------------------------------ | ---- | - | ---- | ---- | - | ---- | ---- | -
|                                                                           |  | Three Months EndedSeptember 30, |      |   | Nine Months EndedSeptember 30, |     
|                                                                           |  | 2005                            |      |   | 2004                           |      |   | 2005 |      |   | 2004 |     
|Weighted-average risk-free interest rate                                   |  |                                 | 4.21 | % |                                | 4.52 | % |      | 4.34 | % |      | 4.52 | %
|Dividend yield                                                             |  |                                 |     | % |                                |     | % |      |     | % |      |     | %
|Volatility                                                                 |  |                                 | 7    | % |                                | 30   | % |      | 7    | % |      | 30   | %
|Expected life in years                                                     |  |                                 | 6.5  |   |                                | 10   |   |      | 6.9  |   |      | 10   |  
|                                                                           |  |                                 |      |  
|Weighted-average grant date fair value of options issued during the period |  | $                               | 4.06 |   |                                | 5.76 |   |      | 4.15 |   |      | 5.76 |  
|                                                                           |  |                                 |      |   |                                |      |   |      |      |   |      |      |  



(continued)



9



---

SUNCOAST BANCORP, INC. AND SUBSIDIARY



Notes to Condensed Consolidated Financial Statements (unaudited), Continued



(5) Regulatory Capital



The Bank is required to maintain certain minimum regulatory capital requirements. The following is a summary at
September 30, 2005 of the regulatory capital requirements and the Banks actual capital on a percentage basis:



|                                                |  |        |   |  |                                                  |  
|----------------------------------------------- |  | ------ | - |  | ------------------------------------------------ | -
|                                                |  | Actual |   |  | Regulatory RequirementFor Well- CapitalizedBanks |  
|Total capital to risk-weighted assets           |  | 12.24  | % |  | 10.00                                            | %
|Tier I capital to risk-weighted assets          |  | 11.35  | % |  | 6.00                                             | %
|Tier I capital to total assets - leverage ratio |  | 11.31  | % |  | 5.00                                             | %



At September 30,
2005, management believes the Bank is adequately capitalized.



(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 of shares of preferred stock computed at 6% per annum will be paid on
December 31, 2005 and 2006.



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 is mandatorily convertible into common stock at a conversion price of
$8.10 per share (subject to antidilution adjustments) on the earlier of September 30, 2005 or a change of control of the Company. In addition, per share cumulative dividends of shares of preferred stock computed at 6% per annum are payable
on September 30, 2005 and 2004. 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 $302,000 at September 30, 2005.



(7) Commitments



On November 4, 2004, the Bank purchased land on
State Road 64 in Bradenton, Florida for a future banking facility at a purchase price of approximately $1,493,000. On September 6, 2005, the Bank entered into an agreement for the construction of a full-service banking facility on the site. The
total cost of construction under the contract is estimated to be approximately $1,468,000 and the building is expected to be completed in the first quarter of 2006. The Bank plans to open a temporary banking facility on the site in November 2005.



10



---

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 September 30, 2005, and for the three- and nine- month periods ended
September 30, 2005 and 2004 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.



11



---

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 September 30, 2005, and the related condensed consolidated statements of earnings for the three- and nine-
month periods ended September 30, 2005 and 2004, the related condensed consolidated statements of cash flows and stockholders equity for the nine-month periods ended September 30, 2005 and 2004. 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, 2004, and the related consolidated
statements of earnings, stockholders equity and cash flows for the year then ended (not presented herein); and in our report dated March 14, 2005 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, 2004, 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                
|October 19, 2005              



12



---

SUNCOAST BANCORP, INC. AND SUBSIDIARY



Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations



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 two banking offices located in Sarasota County,
Florida.



Liquidity and Capital Resources



The Companys primary sources of cash during the nine months ended
September 30, 2005 were from net deposit inflows of $22.8 million, proceeds from the repayment of securities available for sale of $1.2 million and net cash provided by operations of $1.2 million. Cash was used primarily to originate loans, net
of principal repayments, totaling $22.7 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 involvement the Company has in 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.



13



---

SUNCOAST BANCORP, INC. AND SUBSIDIARY



Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations, Continued



A summary of the Companys financial instruments, with off-balance sheet risk at September 30, 2005 follows (in thousands):



|                                       |  |                |       
|-------------------------------------- |  | -------------- | ------
|                                       |  | ContractAmount
|Commitments to extend credit           |  | $              | 7,095 
|                                       |  |                |       
|Unused line of credit and construction |  | $              | 35,261
|                                       |  |                |       
|Standby letters of credit              |  | $              | 1,104 
|                                       |  |                |       



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:



|                                                                                                |  |                                     |   |  |                             |   |  |                                     |  
|----------------------------------------------------------------------------------------------- |  | ----------------------------------- | - |  | --------------------------- | - |  | ----------------------------------- | -
|                                                                                                |  | Nine Months EndedSeptember 30, 2005 |   |  | Year EndedDecember 31, 2004 |   |  | Nine Months EndedSeptember 30, 2004 |  
|Average equity as a percentage of average assets                                                |  | 12.17                               | % |  | 8.70                        | % |  | 8.55                                | %
|Equity to total assets at end of period                                                         |  | 11.62                               | % |  | 13.67                       | % |  | 7.86                                | %
|Return on average assets (1)                                                                    |  | 0.77                                | % |  | 0.49                        | % |  | 0.39                                | %
|Return on average equity (1)                                                                    |  | 6.32                                | % |  | 5.56                        | % |  | 4.49                                | %
|Noninterest expenses to average assets (1)                                                      |  | 2.21                                | % |  | 2.40                        | % |  | 2.51                                | %
|Nonperforming loans and foreclosed real estate as a percentage of total assets at end of period |  |                                    | % |  |                            | % |  |                                    | %

---

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



14



---

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 September 30, |        
|                                                                                 |  | 2005                             |         |                      | 2004 |                  
|                                                                                 |  | AverageBalance                   |         | InterestandDividends |      | AverageYield/Rate |  |      | AverageBalance |  | InterestandDividends |        | AverageYield/Rate |  
|                                                                                 |  | (Dollars in thousands)           |        
|Interest-earning assets:                                                         |  |                                  |         |                      |      |                   |  |      |                |  |                      |        |                   |   |       |  |      |  
|Loans                                                                            |  | $                                | 99,072  |                      |      | 1,671             |  | 6.75 | %              |  | $                    | 72,642 |                   |   | 1,100 |  | 6.06 | %
|Securities                                                                       |  |                                  | 9,808   |                      |      | 98                |  | 4.00 |                |  |                      | 9,914  |                   |   | 93    |  | 3.76 |  
|Other interest-earning assets (1)                                                |  |                                  | 10,909  |                      |      | 96                |  | 3.52 |                |  |                      | 6,164  |                   |   | 26    |  | 1.69 |  
|                                                                                 |  |                                  |         |                      |      |                   |  |      |                |  |                      |        |                   |   |       |  |      |  
|Total interest-earning assets                                                    |  |                                  | 119,789 |                      |      | 1,865             |  | 6.23 |                |  |                      | 88,720 |                   |   | 1,219 |  | 5.50 |  
|                                                                                 |  |                                  |         |                      |      |                   |  |      |                |  |                      |        |                   |   |       |  |      |  
|Noninterest-earning assets                                                       |  |                                  | 4,678   |                      |      |                   |  |      |                |  |                      | 5,038  |                   |   |       |  |      |  
|                                                                                 |  |                                  |         |                      |      |                   |  |      |                |  |                      |        |                   |   |       |  |      |  
|Total assets                                                                     |  | $                                | 124,467 |                      |      |                   |  |      |                |  | $                    | 93,758 |                   |   |       |  |      |  
|                                                                                 |  |                                  |         |                      |      |                   |  |      |                |  |                      |        |                   |   |       |  |      |  
|Interest-bearing liabilities:                                                    |  |                                  |         |                      |      |                   |  |      |                |  |                      |        |                   |   |       |  |      |  
|Savings, NOW, money-market deposit accounts                                      |  |                                  | 40,445  |                      |      | 189               |  | 1.87 |                |  |                      | 41,380 |                   |   | 163   |  | 1.58 |  
|Time deposits                                                                    |  |                                  | 58,844  |                      |      | 541               |  | 3.68 |                |  |                      | 37,221 |                   |   | 269   |  | 2.89 |  
|                                                                                 |  |                                  |         |                      |      |                   |  |      |                |  |                      |        |                   |   |       |  |      |  
|Total interest-bearing deposits                                                  |  |                                  | 99,289  |                      |      | 730               |  | 2.94 |                |  |                      | 78,601 |                   |   | 432   |  | 2.20 |  
|                                                                                 |  |                                  |         |                      |      |                  
|Other interest-bearing liabilities (2)                                           |  |                                  |        |                      |      |                  |  |     |                |  |                      | 174    |                   |   |      |  |     |  
|                                                                                 |  |                                  |         |                      |      |                   |  |      |                |  |                      |        |                   |   |       |  |      |  
|Total interest-bearing liabilities                                               |  |                                  | 99,289  |                      |      | 730               |  | 2.94 |                |  |                      | 78,775 |                   |   | 432   |  | 2.20 |  
|                                                                                 |  |                                  |         |                      |      |                   |  |      |                |  |                      |        |                   |   |       |  |      |  
|Noninterest-bearing liabilities                                                  |  |                                  | 11,066  |                      |      |                   |  |      |                |  |                      | 7,389  |                   |   |       |  |      |  
|Stockholders equity                                                             |  |                                  | 14,112  |                      |      |                   |  |      |                |  |                      | 7,594  |                   |   |       |  |      |  
|                                                                                 |  |                                  |         |                      |      |                   |  |      |                |  |                      |        |                   |   |       |  |      |  
|Total liabilities and stockholders equity                                       |  | $                                | 124,467 |                      |      |                   |  |      |                |  | $                    | 93,758 |                   |   |       |  |      |  
|                                                                                 |  |                                  |         |                      |      |                   |  |      |                |  |                      |        |                   |   |       |  |      |  
|Net interest income                                                              |  |                                  |         |                      | $    | 1,135             |  |      |                |  |                      |        |                   | $ | 787   |  |      |  
|                                                                                 |  |                                  |         |                      |      |                   |  |      |                |  |                      |        |                   |   |       |  |      |  
|Interest-rate spread (3)                                                         |  |                                  |         |                      |      |                   |  | 3.29 | %              |  |                      |        |                   |   |       |  | 3.30 | %
|                                                                                 |  |                                  |         |                      |      |                   |  |      |                |  |                      |        |                   |   |       |  |      |  
|Net interest margin (4)                                                          |  |                                  |         |                      |      |                   |  | 3.79 | %              |  |                      |        |                   |   |       |  | 3.55 | %
|                                                                                 |  |                                  |         |                      |      |                   |  |      |                |  |                      |        |                   |   |       |  |      |  
|Ratio of average interest-earning assets to average interest-bearing liabilities |  |                                  | 1.21    |                      |      |                   |  |      |                |  |                      | 1.13   |                   |   |       |  |      |  
|                                                                                 |  |                                  |         |                      |      |                   |  |      |                |  |                      |        |                   |   |       |  |      |  

---

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

|(2) | Includes securities sold under agreements to repurchase.
|--- | --------------------------------------------------------

|(3) | Interest-rate spread represents the difference between the average yield on interest-earning assets and the average rate of interest-bearing liabilities.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------

|(4) | Net interest margin is net interest income divided by average interest-earning assets.
|--- | --------------------------------------------------------------------------------------



15



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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.



|                                                                                 |  |                                 |         |                      |      |                   |  |      |                |  |                      |        |                   |   |       |  |      |  
|-------------------------------------------------------------------------------- |  | ------------------------------- | ------- | -------------------- | ---- | ----------------- |  | ---- | -------------- |  | -------------------- | ------ | ----------------- | - | ----- |  | ---- | -
|                                                                                 |  | Nine Months Ended September 30, |        
|                                                                                 |  | 2005                            |         |                      | 2004 |                  
|                                                                                 |  | AverageBalance                  |         | InterestandDividends |      | AverageYield/Rate |  |      | AverageBalance |  | InterestandDividends |        | AverageYield/Rate |  
|                                                                                 |  | (Dollars in thousands)          |        
|Interest-earning assets:                                                         |  |                                 |         |                      |      |                   |  |      |                |  |                      |        |                   |   |       |  |      |  
|Loans                                                                            |  | $                               | 93,071  |                      |      | 4,529             |  | 6.49 | %              |  | $                    | 67,651 |                   |   | 3,007 |  | 5.93 | %
|Securities                                                                       |  |                                 | 9,275   |                      |      | 274               |  | 3.94 |                |  |                      | 10,275 |                   |   | 285   |  | 3.70 |  
|Other interest-earning assets (1)                                                |  |                                 | 7,174   |                      |      | 176               |  | 3.27 |                |  |                      | 5,340  |                   |   | 56    |  | 1.40 |  
|                                                                                 |  |                                 |         |                      |      |                   |  |      |                |  |                      |        |                   |   |       |  |      |  
|Total interest-earning assets                                                    |  |                                 | 109,520 |                      |      | 4,979             |  | 6.06 |                |  |                      | 83,266 |                   |   | 3,348 |  | 5.37 |  
|                                                                                 |  |                                 |         |                      |      |                   |  |      |                |  |                      |        |                   |   |       |  |      |  
|Noninterest-earning assets                                                       |  |                                 | 5,013   |                      |      |                   |  |      |                |  |                      | 5,119  |                   |   |       |  |      |  
|                                                                                 |  |                                 |         |                      |      |                   |  |      |                |  |                      |        |                   |   |       |  |      |  
|Total assets                                                                     |  | $                               | 114,533 |                      |      |                   |  |      |                |  | $                    | 88,385 |                   |   |       |  |      |  
|                                                                                 |  |                                 |         |                      |      |                   |  |      |                |  |                      |        |                   |   |       |  |      |  
|Interest-bearing liabilities:                                                    |  |                                 |         |                      |      |                   |  |      |                |  |                      |        |                   |   |       |  |      |  
|Savings, NOW, money-market deposit accounts                                      |  |                                 | 39,947  |                      |      | 546               |  | 1.82 |                |  |                      | 40,818 |                   |   | 476   |  | 1.55 |  
|Time deposits                                                                    |  |                                 | 49,978  |                      |      | 1,315             |  | 3.51 |                |  |                      | 32,600 |                   |   | 723   |  | 2.96 |  
|                                                                                 |  |                                 |         |                      |      |                   |  |      |                |  |                      |        |                   |   |       |  |      |  
|Total interest-bearing deposits                                                  |  |                                 | 89,925  |                      |      | 1,861             |  | 2.76 |                |  |                      | 73,418 |                   |   | 1,199 |  | 2.18 |  
|                                                                                 |  |                                 |         |                      |      |                  
|Other interest-bearing liabilities (2)                                           |  |                                 | 213     |                      |      | 5                 |  | 3.13 |                |  |                      | 428    |                   |   | 1     |  | .32  |  
|                                                                                 |  |                                 |         |                      |      |                   |  |      |                |  |                      |        |                   |   |       |  |      |  
|Total interest-bearing liabilities                                               |  |                                 | 90,138  |                      |      | 1,866             |  | 2.76 |                |  |                      | 73,846 |                   |   | 1,200 |  | 2.17 |  
|                                                                                 |  |                                 |         |                      |      |                   |  |      |                |  |                      |        |                   |   |       |  |      |  
|Noninterest-bearing liabilities                                                  |  |                                 | 10,464  |                      |      |                   |  |      |                |  |                      | 6,989  |                   |   |       |  |      |  
|Stockholders equity                                                             |  |                                 | 13,931  |                      |      |                   |  |      |                |  |                      | 7,550  |                   |   |       |  |      |  
|                                                                                 |  |                                 |         |                      |      |                   |  |      |                |  |                      |        |                   |   |       |  |      |  
|Total liabilities and stockholders equity                                       |  | $                               | 114,533 |                      |      |                   |  |      |                |  | $                    | 88,385 |                   |   |       |  |      |  
|                                                                                 |  |                                 |         |                      |      |                   |  |      |                |  |                      |        |                   |   |       |  |      |  
|Net interest income                                                              |  |                                 |         |                      | $    | 3,113             |  |      |                |  |                      |        |                   | $ | 2,148 |  |      |  
|                                                                                 |  |                                 |         |                      |      |                   |  |      |                |  |                      |        |                   |   |       |  |      |  
|Interest-rate spread (3)                                                         |  |                                 |         |                      |      |                   |  | 3.30 | %              |  |                      |        |                   |   |       |  | 3.20 | %
|                                                                                 |  |                                 |         |                      |      |                   |  |      |                |  |                      |        |                   |   |       |  |      |  
|Net interest margin (4)                                                          |  |                                 |         |                      |      |                   |  | 3.79 | %              |  |                      |        |                   |   |       |  | 3.45 | %
|                                                                                 |  |                                 |         |                      |      |                   |  |      |                |  |                      |        |                   |   |       |  |      |  
|Ratio of average interest-earning assets to average interest-bearing liabilities |  |                                 | 1.22    |                      |      |                   |  |      |                |  |                      | 1.13   |                   |   |       |  |      |  
|                                                                                 |  |                                 |         |                      |      |                   |  |      |                |  |                      |        |                   |   |       |  |      |  

---

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

|(2) | Includes securities sold under agreements to repurchase.
|--- | --------------------------------------------------------

|(3) | Interest-rate spread represents the difference between the average yield on interest-earning assets and the average rate of interest-bearing liabilities.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------

|(4) | Net interest margin is net interest income divided by average interest-earning assets.
|--- | --------------------------------------------------------------------------------------



16



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SUNCOAST BANCORP, INC. AND SUBSIDIARY



Comparison of the Three-Month Periods Ended September 30, 2005 and 2004



General. Net earnings applicable to common stockholders for the
three months ended September 30, 2005 were $153,000, or $.21 basic and $.17 diluted earnings per share, compared to net earnings applicable to common stockholders of $95,000, or $.13 basic and $.12 diluted earnings per share, for the three
months ended September 30, 2004. The increase in the Companys net earnings applicable to common stockholders was primarily due to an increase in net interest income, partially offset by an increase in noninterest expenses and preferred
stock dividends.



Interest Income and Expense.
Interest income increased by $646,000 or 53% from $1,219,000 for the three months ended September 30, 2004 to $1,865,000 for the three months ended September 30, 2005. Interest income on loans increased $571,000 primarily due to an
increase in the average loan portfolio balance from $72.6 million for the three months ended September 30, 2004 to $99.1 million for the comparable period in 2005. The weighted-average yield also increased during the same time period from 6.06%
in 2004 to 6.75% in 2005. Interest on securities increased $5,000 primarily due to an increase in the weighted-average yield from 3.76% in 2004 to 4.0% in 2005 which was partially offset by a decrease in the average securities balance from $9.9
million in 2004 to $9.8 million in 2005.



Interest expense on
interest-bearing deposits increased 69% to $730,000 for the three months ended September 30, 2005 compared to $432,000 for the three months ended September 30, 2004. Interest expense on interest-bearing deposits increased due to an
increase in the average balance from $78.6 million in 2004 to $99.3 million in 2005. The weighted average rate paid also increased from 2.20% in 2004 to 2.94% in 2005.



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 $55,000 for the three months ended September 30, 2005 compared to $37,000 for the
comparable period in 2004. Management believes the balance in the allowance for loan losses of $1,099,000 at September 30, 2005 is adequate.



Noninterest Income.Noninterest income increased $2,000 during the three month period ended September 30, 2005 compared to the same
period in 2004.



Noninterest Expenses.
Noninterest expenses increased $95,000 or 16.6% during the three-month period ended September 30, 2005 compared to the same period in 2004. Noninterest expenses increased primarily due to an increase in salaries and employee benefits,
professional fees and marketing expenses. The increase in noninterest expenses is due primarily to the growth of the Company.



Income Taxes. The income tax provision for the three months ended September 30, 2005 was $169,000 (an effective rate of 38%) compared
to an income tax provision of $79,000 (an effective rate of 38.0%) for the comparable 2004 period.



17



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SUNCOAST BANCORP, INC. AND SUBSIDIARY



Comparison of the Nine-Month Periods Ended September 30, 2005 and 2004



General. Net earnings applicable to common stockholders for the
nine months ended September 30, 2005 were $289,000, or $.39 basic and $.38 diluted earnings per share, compared to $145,000, or $.20 basic and diluted loss per share, for the nine months ended September 30, 2004. The increase in the
Companys net earnings applicable to common stockholders was primarily due to an increase in net interest income, partially offset by an increase in noninterest expenses and an increase in preferred stock dividends.



Interest Income and Expense. Interest income increased by $1.6
million or 48.5%, from $3.3 million for the nine months ended September 30, 2004 to $5.0 million for the nine months ended September 30, 2005. Interest income on loans increased $1.5 million primarily due to an increase in the average loan
portfolio balance from $67.7 million for the nine months ended September 30, 2004 to $93.1 million for the comparable period in 2005. The weighted-average yield from also increased 5.93% in 2004 to 6.49% in 2005. Interest on securities
decreased $11,000 primarily due to a decrease in the average securities balance to $9.3 million in 2005 from $10.3 million in 2004 which was partially offset by an increase in the weighted-average yield from 3.70% in 2004 to 3.94% in 2005.



Interest expense on interest-bearing deposits increased 58.3%
to $1.9 million for the nine months ended September 30, 2005 compared to $1.2 million for the nine months ended September 30, 2004. Interest expense on interest-bearing deposits increased due to an increase in the average balance from
$73.4 million in 2004 to $89.9 million in 2005. The weighted average rate paid also increased from 2.18% in 2004 to 2.76% in 2005.



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 $235,000 for the nine months ended September 30, 2005 compared to $159,000 for the comparable period in 2004.
Management believes the balance in the allowance for loan losses of $1,099,000 at September 30, 2005 is adequate.



Noninterest Income.Noninterest income decreased $3,000 during the nine month period ended September 30, 2005 compared to the same
period in 2004.



Noninterest Expenses.
Noninterest expenses increased $232,000 or 14% during the nine-month period ended September 30, 2005 compared to the same period in 2004. Noninterest expenses increased primarily due to an increase in salaries and employee benefits,
professional fees, FDIC insurance assessment, and marketing expenses. The increase in noninterest expenses is due primarily to the growth of the Company.



Income Taxes. The income tax provision for the nine months ended September 30, 2005 was $404,000 (an effective rate of 38%) compared to
an income tax provision of $156,000 (an effective rate of 38.0%) for the comparable 2004 period.



18



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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 September 30, 2005, the Chief Executive and Chief Financial officers of the Company concluded that the Companys disclosure controls and procedures were effective.
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|b. | Changes in internal controls. There were no significant 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.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



19



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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                                                                                                                                                                                                                                          
|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                                                                                                                   



20



---

SUNCOAST BANCORP, INC. AND SUBSIDIARY



SIGNATURES



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



|                       |  |                                     |  |                                                               
|---------------------- |  | ----------------------------------- |  | --------------------------------------------------------------
|                       |  | SUNCOAST BANCORP, INC. (Registrant)
|                       |  |                                    
|Date: November 9, 2005 |  | By:                                 |  | /s/ John T. Stafford                                          
|                       |  |                                     |  | John T. Stafford, President and Chief Executive Officer       
|                       |  |                                    
|Date: November 9, 2005 |  | By:                                 |  | /s/ John S. Wilks                                             
|                       |  |                                     |  | John S. Wilks, Chief Financial Officer                        
|                       |  |                                     |  | (Principal Financial Officer and Principal Accounting Officer)



21