SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                   FORM 10-QSB


[X]  QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES  EXCHANGE ACT
     OF 1934 For the quarter ended March 31, 2000

                                                            OR

[ ]  TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT
     OF   1934   For   the   transition   period   from    _______________    to
     _________________.

                                                 Commission File Number  0-25933


                        SOUTHCOAST FINANCIAL CORPORATION
        (Exact Name of Small Business Issuer as Specified in its Charter)


      South Carolina                                  58-2384011
 (State of Incorporation)               (I.R.S. Employer Identification Number)



               530 Johnnie Dodds Boulevard, Mt. Pleasant, SC 29464
                    (Address of Principal Executive Offices)


                                 (843) 884-0504
                           (Issuer's Telephone Number)


         Check whether the issuer (1) has filed all reports required to be filed
by  Section  13 or 15(d) of the  Exchange  Act during the past 12 months (or for
such shorter periods that the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days.

         [X] Yes   [ ] No

         State the number of shares  outstanding of each of the issuer's classes
of common  equity,  as of the latest  practicable  date:  Common  Stock - No Par
Value: 1,047,987 Shares Outstanding on March 31, 2000.

         Transitional Small Business Disclosure Format (Check one):

         [ ]  Yes  [X]  No





<PAGE>


                                     PART I
                              FINANCIAL INFORMATION

ITEM 1.  Financial Statements

                        SOUTHCOAST FINANCIAL CORPORATION
                           CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>

                                                                                                 (Unaudited)
                                                                                                   March 31,            December 31,
                                                                                                     2000                   1999
                                                                                                     ----                   ----
ASSETS
<S>                                                                                            <C>                     <C>
   Cash and due from banks .........................................................           $  4,403,754            $  1,786,411
   Federal funds sold ..............................................................              2,250,000               1,310,000
   Investment securities available for sale ........................................              3,103,474               3,121,049
   Loans, net of allowance of $865,000 and $835,000 ................................             49,356,130              43,153,421
   Property and equipment - net ....................................................              4,768,376               4,513,284
   Other assets ....................................................................              1,662,475               1,364,381
                                                                                               ------------            ------------
       Total assets ................................................................           $ 65,544,209            $ 55,248,546
                                                                                               ============            ============

LIABILITIES
   Deposits
     Noninterest-bearing ...........................................................           $  6,242,950            $  5,667,155
     Interest bearing ..............................................................             39,642,075              32,577,797
                                                                                               ------------            ------------
       Total deposits ..............................................................             45,885,025              38,244,952
   Federal Home Loan Bank borrowings ...............................................              9,299,904               6,899,904
   Other liabilities ...............................................................                612,935                 382,892
                                                                                               ------------            ------------
       Total liabilities ...........................................................             55,797,864              45,527,748
                                                                                               ------------            ------------
SHAREHOLDERS' EQUITY
   Common stock (no par value; 20,000,000 shares authorized;
     1,047,987 shares outstanding at March 31,2000 and
     December 31, 1999) ............................................................             10,520,053              10,520,053
   Retained deficit ................................................................               (677,000)               (714,147)
   Accumulated other comprehensive income (loss) ...................................                (96,708)                (85,108)
                                                                                               ------------            ------------
       Total shareholders' equity ..................................................              9,746,345               9,720,798
                                                                                               ------------            ------------
       Total liabilities and shareholders' equity ..................................           $ 65,544,209            $ 55,248,546
                                                                                               ============            ============
</TABLE>









         See notes to consolidated financial statements.




                                       2
<PAGE>


                        SOUTHCOAST FINANCIAL CORPORATION
                        CONSOLIDATED STATEMENTS OF INCOME
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                               Three months            Three months
                                                                                                    ended                 ended
                                                                                               March 31,2000          March 31, 1999
                                                                                               -------------          --------------
INTEREST INCOME
<S>                                                                                             <C>                     <C>
   Loans, including fees ..........................................................             $ 1,169,769             $   366,146
   Investment securities ..........................................................                  57,743                  47,143
   Federal funds sold .............................................................                  16,664                  48,748
                                                                                                -----------             -----------
       Total interest income ......................................................               1,244,176                 462,037

INTEREST EXPENSE
   Deposits and borrowings ........................................................                 602,718                 139,542
                                                                                                -----------             -----------
       Net interest income ........................................................                 641,458                 322,495

PROVISION FOR POSSIBLE LOAN LOSSES ................................................                  30,000                 225,000
                                                                                                -----------             -----------
       Net interest income after provision for loan losses ........................                 611,458                  97,495
                                                                                                -----------             -----------

NONINTEREST INCOME
   Service fees on deposit accounts ...............................................                  42,709                  18,277
   Fees on loans sold .............................................................                  12,109                  15,170
   Other ..........................................................................                  33,216                  24,610
                                                                                                -----------             -----------
       Total non interest income ..................................................                  88,034                  58,057
                                                                                                -----------             -----------

NONINTEREST EXPENSES
   Salaries and employee benefits .................................................                 408,107                 252,153
   Occupancy ......................................................................                  31,655                  13,984
   Furniture and equipment ........................................................                  66,753                  32,577
   Advertising and public relations ...............................................                  15,194                  17,623
   Professional fees ..............................................................                  14,688                  15,715
   Travel and entertainment .......................................................                  26,177                  15,041
   Telephone, postage and supplies ................................................                  42,975                  23,057
   Other operating ................................................................                  37,659                   8,998
                                                                                                -----------             -----------
       Total noninterest expenses .................................................                 643,208                 379,148
                                                                                                -----------             -----------
       Income [loss) before income taxes ..........................................                  56,284                (223,596)
INCOME TAX  (BENEFIT) .............................................................                  19,137                 (75,996)
                                                                                                -----------             -----------
       Net income (loss) ..........................................................             $    37,147             $  (147,600)
                                                                                                ===========             ===========

NET INCOME (LOSS)  PER COMMON SHARE ...............................................             $       .04             $     (0.14)
                                                                                                ===========             ===========

WEIGHTED AVERAGE SHARES OUTSTANDING ...............................................               1,047,987               1,047,987
                                                                                                ===========             ===========
</TABLE>



       See notes to consolidated financial statements.


                                       3
<PAGE>


                        SOUTHCOAST FINANCIAL CORPORATION
           CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                                                           Accumulated       Total
                                                     Common stock                                              other         share-
                                               --------------------         Paid-in       Retained        comprehensive     holders'
                                                  Shares      Amount        capital        deficit        income (loss)     equity
                                                  ------      ------        -------        -------        -------------     ------


<S>                                           <C>         <C>            <C>            <C>            <C>             <C>
BALANCE, JANUARY 1, 1999 ...............      1,047,987   $  5,239,935   $  5,280,118   $  (451,147)   $      5,678    $ 10,074,584

    Net loss ...........................              -              -              -      (147,600)              -        (147,600)

    Other comprehensive income, net
        of tax:
        Unrealized holding losses on
           securities available for sale              -              -              -             -         (18,388)        (18,388)
                                                                                                                       ------------
    Comprehensive income (loss) ........              -              -              -             -               -         165,988)



BALANCE, MARCH 31,1999 .................      1,047,987      5,239,935      5,280,118      (598,747)        (12,710)   $  9,908,596
                                           ============   ============   ============   ===========    ============    ============

BALANCE, JANUARY 1, 2000 ...............      1,047,987     10,520,053                     (714,147)        (85,108)      9,720,798

    Net income - .......................              -              -              -        37,147                          37,147

    Other comprehensive income, net
        of tax:
        Unrealized holding losses on
           securities available for sale              -              -              -             -         (11,600)        (11,600)
                                                                                                                       ------------

    Comprehensive income (loss) ........              -              -              -             -               -          25,547
                                           ------------   ------------   ------------   -----------    ------------    ------------
BALANCE, March 31, 2000 ................      1,047,987   $ 10,520,053   $          -   $  (677,000)   $    (96,708)   $  9,746,345
                                           ============   ============   ============   ===========    ============    ============
</TABLE>








                  See notes to consolidated financial statements.


                                       4
<PAGE>




                        SOUTHCOAST FINANCIAL CORPORATION
                      CONSOLIDATED STATEMENT OF CASH FLOWS
                       For the three months ended March 31
                                   (Unaudited)
<TABLE>
<CAPTION>

OPERATING ACTIVITIES                                                                                  2000                     1999
                                                                                                      ----                     ----
<S>                                                                                            <C>                     <C>
   Net income (loss) ...............................................................           $     37,147            $   (147,600)
   Adjustments  to reconcile net income
      (loss) to net Cash provided by operating  activities:
     Income tax (benefit) ..........................................................                 19,137                 (75,996)
     Provision  for possible loan losses ...........................................                 30,000                 225,000
     Depreciation and amortization .................................................                 71,948                  25,563
     Increase in other assets ......................................................               (311,256)                (94,737)
     Increase in other liabilities .................................................                230,043                 101,073
                                                                                               ------------            ------------
         Net cash provided by operating activities .................................                 39,872                  33,303
                                                                                               ------------            ------------

INVESTING ACTIVITIES
   Increase in federal funds sold ..................................................               (940,000)               (920,000)
   Purchase of investment securities available for sale ............................                      -                (516,153)
   Net increase in loans ...........................................................             (6,232,709)             (7,165,339)
   Purchase of property and equipment ..............................................               (327,040)               (995,368)
                                                                                               ------------            ------------
         Net cash used for investing activities ....................................             (7,499,749)             (9,596,860)
                                                                                               ------------            ------------

FINANCING ACTIVITIES
   Increase in Federal Home Loan Bank borrowing ....................................              2,400,000                  50,000
   Net increase in deposits ........................................................              7,640,073               9,723,582
                                                                                               ------------            ------------
         Net cash provided by financing activities .................................             10,040,073               9,773,582
                                                                                               ------------            ------------

         Increase in cash and due from banks .......................................              2,617,343                 210,025


CASH AND DUE FROM BANKS, BEGINNING OF PERIOD .......................................              1,786,411               1,211,451
                                                                                               ------------            ------------

CASH AND DUE FROM BANKS, END OF PERIOD .............................................           $  4,403,754            $  1,421,476
                                                                                               ============            ============
</TABLE>









     See notes to consolidated financial statements.


                                       5
<PAGE>

                        SOUTHCOAST FINANCIAL CORPORATION
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS


NOTE 1 - BASIS OF PRESENTATION

           The accompanying unaudited financial statements have been prepared in
accordance with generally accepted  accounting  principles for interim financial
information  and  with  the  instructions  to Form  10-QSB  and  item 310 (b) of
Regulation S-B of the Securities and Exchange  Commission.  Accordingly  they do
not  include all  information  and  footnotes  required  by  generally  accepted
accounting principles for complete financial statements. However, in the opinion
of management,  all  adjustments  (consisting of normal  recurring  adjustments)
considered necessary for a fair presentation have been included.

NOTE 2 - ORGANIZATION

           Southcoast Financial  Corporation (the "Company") is a South Carolina
corporation  organized  in 1999 for the  purpose of being a holding  company for
Southcoast Community Bank (the "Bank"). On April 29, 1999, pursuant to a Plan of
Exchange approved by the shareholders,  all of the outstanding shares of capital
stock of the Bank were exchanged for shares of common stock of the Company.  The
Company  presently engages in no business other than that of owning the Bank and
has no employees.  The results for the period ending March 31,1999,  reflect the
previous filing of Southcoast Community Bank.

NOTE 3 - NET INCOME (LOSS) PER SHARE

           Net income per share is computed on the basis of the weighted average
number of common shares  outstanding  in accordance  with Statement of Financial
Accounting  Standards No. 128,  "Earnings per Share".  The Company does not have
any instruments which are dilutive;  therefore,  only basic net income per share
of common stock is presented.

           In March, 1999, the Company declared an eleven-for-ten stock split of
the Company's  common stock. The weighted average number of shares and all other
share data have been  restated  for all periods  presented to reflect this stock
split.





                                       6
<PAGE>

ITEM 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

           The following  discussion and analysis  should be read in conjunction
with the financial  statements and related notes appearing in the Form 10-KSB of
Southcoast  Financial  Corporation.  It will  concentrate on the three months of
operations ending March 31, 2000, compared to the quarter ending March 31, 1999.
Results of operations  for the period ending March 31, 2000 are not  necessarily
indicative  of the  results  to be  attained  for any other  period.  Statements
included in  Management's  Discussion  and Analysis  which are not historical in
nature and  intended  to be,  and are  hereby  identified  as  "forward  looking
statements"  for  purposes  of the safe  harbor  provided  by section 21E of the
Securities  Exchange Act of 1934, as amended.  The Company cautions readers that
forward looking statements  including without limitation,  those relating to the
Company's new offices,  future business  prospects,  revenues,  working capital,
liquidity,  capital needs,  interest costs,  and income,  are subject to certain
risks and  uncertainties  that could cause  actual  results to differ from those
indicated in the forward looking  statements,  due to several  important factors
herein  identified,  among others,  and other risks and factors  identified from
time to time in the  Company's  reports filed with the  Securities  and Exchange
Commission.

NET INTEREST INCOME

Net interest  income is the difference  between the interest  earned on interest
earning assets and the interest paid for funds acquired to support those assets.
Net  interest  income,  the  principal  source of the  Company's  earnings,  was
$641,458 for the three months ended March 31, 2000, compared to $322,495 for the
three months ended March 31, 1999.

Changes that affect net  interest  income are changes in the average rate earned
on interest earning assets, changes in the average rate paid on interest bearing
liabilities,  and changes in the volume of interest  earning assets and interest
bearing liabilities.

Average  earning assets for the quarter ending March 31,2000  increased to $52.1
million or 143 percent from the $21.4  million  reported for the quarter  ending
March  31,1999.  The increase was mainly  attributable  to the increase in loans
supported by a $31.4  million  increase in interest  bearing  liabilities  which
resulted from favorable  economic  conditions in the Charleston,  South Carolina
market, the opening of the bank's first branch in the third quarter of 1999, and
the Company's marketing efforts.

The following  table  represents  changes in the  Company's net interest  income
which are  primarily  a result of changes  in volume  and rates of its  interest
earning assets and interest  bearing  liabilities.  The increase in net interest
income is due to  increased  volume  of  earning  assets  and  interest  bearing
liabilities coupled with a 15 basis point increase in the Company's net interest
spread.  The net interest spread is the difference  between the yield on earning
assets minus the average rate of interest bearing liabilities.





                                       7
<PAGE>



<TABLE>
<CAPTION>
                                                          Three months ended                          Three months ended
                                                             March 31, 2000                             March 31, 1999
                                                             --------------                             --------------
                                                 Average          Income/     Yield/            Average          Income/     Yield/
ASSETS                                           balance          expense       rate            balance          expense      rate
                                                 -------          -------       ----            -------          -------      ----

<S>                                           <C>              <C>              <C>           <C>              <C>            <C>
Federal funds sold ......................     $ 1,144,157      $    16,664      5.83%         $ 4,170,408      $    48,748     4.68%
Investments .............................       3,467,473           57,743      6.66            3,367,041           47,143     5.60
                                              -----------      -----------                    -----------      -----------
 Total investments and
   federal funds sold ...................       4,611,630           74,407      6.45            7,537,449           95,891     5.09
Loans ...................................      47,441,062        1,169,769      9.86           13,865,838          366,146    10.56
                                              -----------      -----------                    -----------      -----------
Total earning assets ....................      52,052,692        1,244,176      9.56           21,403,287          462,037     8.63
                                                               -----------                                     -----------
Other assets ............................       6,841,285                                       2,078,417
                                              -----------                                     -----------
Total assets ............................     $58,893,977                                     $23,481,704
                                              ===========                                     ===========

LIABILITIES
Interest bearing deposits ...............     $35,967,769      $   497,892      5.54          $11,076,050      $   133,328     4.82
FHLB advances ...........................       6,947,208          104,826      6.04              438,925            6,214     5.66
                                              -----------      -----------                    -----------      -----------
 Total interest bearing
   liabilities ..........................      42,914,977          602,718      5.62           11,514,975          139,542     4.85

Non-interest bearing
   liabilities ..........................       6,130,649                                       1,903,790
                                              -----------      -----------                    -----------      -----------
Total liabilities .......................      49,045,626          602,718      4.92           13,418,765          139,542     4.16
Equity ..................................       9,848,351                                      10,062,939
                                              -----------                                     -----------
Total liabilities and
   Equity ...............................     $58,893,977                                     $23,481,704
                                              ===========                                     ===========
Net interest income/
   margin ...............................                      $   641,458      4.93                           $   322,495     6.03
                                                               ===========                                     ===========
Net interest spread .....................                                       3.94                                           3.79
</TABLE>

As reflected  above, for the three months ended March 31, 2000 the average yield
on earning  assets amounts  amounted to 9.56 percent,  while the average cost of
interest-bearing  liabilities was 5.62 percent. For the three months ended March
31, 1999 the average  yield on earning  assets was 8.63  percent and the average
cost of interest-bearing liabilities was 4.85 percent. The increase in the yield
on earning assets is attributable to the increased  volume of loans,  which give
the Company a greater  return than the other  types of earning  assets.  The net
interest margin is computed by subtracting interest expense from interest income
and dividing the resulting figure by average  interest-earning  assets.  The net
interest  margin for the three  months  ended  March 31,  2000 was 4.93  percent
compared to 6.03 percent for the three months ended March 31, 1999. The decrease
in the  net-interest  margin is attributable to the increase in interest bearing
liabilities  which  resulted in an increase in the cost of total  liabilities to
support earning assets.  The cost of total  liabilities was 4.92 percent for the
three months ended March 31, 2000  compared to 4.16 percent for the three months
ended March 31, 1999.

The following  table  represents  changes in the  Company's net interest  income
which  are  primarily  a  result  of  changes  in the  volume  and  rates of its
interest-earning assets and interest-bearing liabilities.





                                       8
<PAGE>



                   Analysis of Changes in Net Interest Income


<TABLE>
<CAPTION>
                                                                                    For  the  three  months  ended March 31, 2000
                                                                                      versus three months ended March 31, 1999
                                                                               Volume                 Rate                Net change
                                                                               ------                 ----                ----------
<S>                                                                           <C>                   <C>                   <C>
Federal funds sold ...............................................            $ (35,407)            $   3,323             $ (32,084)
Investments ......................................................                1,406                 9,194                10,600
                                                                              ---------             ---------             ---------
Total investments and federal funds sold .........................              (34,001)               12,517               (21,484)
Total loans ......................................................              886,386               (82,763)              803,623
                                                                              ---------             ---------             ---------
Total earning assets .............................................              852,385               (70,246)              782,139
Total interest-bearing liabilities ...............................              392,037                71,139               463,176
                                                                              ---------             ---------             ---------
Net interest income ..............................................            $ 460,348             $(141,385)            $ 318,963
                                                                              =========             =========             =========
</TABLE>

RESULTS OF OPERATIONS

The  Company's  net income for the three months ended March 31, 2000 was $37,147
or $.04 per share,  compared to a loss of  $147,600  or $.14 per share,  for the
three months ended March 31,1999. The amount of the Company's provision for loan
losses in the quarter was $30,000 which was  substantially  less than the amount
of the  provision in the first  quarter of 1999.  Since opening the bank in July
1998,  management  has  sought to have an  allowance  for loan  losses  that was
adequate to cover the level of loss that  management  believed to be inherent in
the  portfolio as a whole taking into account the relative size of the allowance
and the size of the  Company's  largest  loans.  In the third  quarter  of 1999,
management  concluded  that the  allowance  for loan losses was large  enough to
allow for the risk of loss of one or two of the  Company's  largest  loan  while
maintaining a reserve allowance for the loan portfolio as a whole. Consequently,
the Company  started in third quarter of 1999 making  quarterly  provisions that
were less than in prior  quarters.  As of March  31,2000,  the  reserve for loan
losses as a percent of total loans was 1.72%.

Non-interest  income for the three  months  ended  March 31,  2000 was  $88,034,
compared to $58,057 for the three months ended March 31, 1999.

Non-interest  expenses for the three months ended March 31, 2000 were  $643,208,
compared to $379,148 for the three months ended March  31,1999.  The increase of
$264,060  is mainly  attributable  to an  increases  in salaries  and  benefits,
occupancy cost and furniture and equipment  expenses.  These increases primarily
relate to expenses  associated with the preparation of and opening of the bank's
first two branches and increase in administrative staff to support the growth.

LIQUIDITY

Liquidity  is the  ability  to  meet  current  and  future  obligations  through
liquidation or maturity of existing  assets or the  acquisition of  liabilities.
The Company manages both assets and liabilities to achieve appropriate levels of
liquidity.  Cash and short-term investments are the Company's primary sources of
asset liquidity.  These funds provide a cushion against short-term  fluctuations
in cash flow from both  deposits  and loans.  The  investment  portfolio  is the
Company's   principal  source  of  secondary  asset  liquidity.   However,   the
availability  of this  source  of  funds is  influenced  by  market  conditions.
Individual  and commercial  deposits and  borrowings  from the Federal Home Loan
Bank are the  Company's  primary  source of funds  for  credit  activities.  The
Company  also has a $3 million  line of credit with the Bankers Bank of Atlanta.
Management  believes that the Company's  liquidity  sources are adequate to meet
its operating needs.


                                       9
<PAGE>

LOANS

Commercial financial and agricultural loans made up 26 percent of the total loan
portfolio as of March 31, 2000,  totaling $13.0  million.  Loans secured by real
estate for construction  and land development  totaled $2.7 million or 6 percent
of the total loan portfolio while all other loans secured by real estate totaled
$32.3  million or 64 percent of the total loan  portfolio  as of March 31, 2000.
Installment  loans and other consumer  loans to individuals  comprised $2.2 or 4
percent of the total loan  portfolio.  The  allowance  for loan  losses was 1.72
percent of loans as of March 31, 2000  compared  to 1.90  percent as of December
31, 1999. In management's opinion, the allowance for loan losses is adequate. At
March  31,  the  Company  had no  loans  that  were 90 days or more  past due or
non-accruing.


CAPITAL RESOURCES

The capital base for the Company increased by $25,547 for the first three months
of 2000,  due to operating  income and  unrealized  losses on available for sale
securities.  On March 17, 2000, the Company  announced plans to repurchase up to
100,000  shares of its  common  stock.  Any  repurchase  will have the effect of
reducing the Company's  equity capital by the amount paid. The Company's  equity
to asset ratio was 14.9 percent as of March 31, 2000 compared to 17.6 percent as
of December 31, 1999.


The Federal Deposit  Insurance  Corporation has established  risk-based  capital
requirements  for banks.  As of March 31, 2000,  the Company's  subsidiary  bank
exceeds the capital requirement levels that are to be maintained.

                                 Capital Ratios
<TABLE>
<CAPTION>
                                                                                        Well Capitalized      Adequately Capitalized
                                                                   Actual                  Requirement                Requirement
                                                                   ------                  -----------                -----------
                                                            Amount        Ratio        Amount       Ratio         Amount       Ratio
                                                            ------        -----        ------       -----         ------       -----
<S>                                                        <C>            <C>         <C>           <C>          <C>           <C>
Total capital to risk weighted assets ..............       $10,376        24.48%      $ 4,238       10.00%       $ 3,390       8.00%
Tier 1 capital to risk weighted assets .............         9,846        23.23         2,503        6.00          1,695       4.00
Tier 1 capital to average assets ...................         9,846        16.72         2,945        5.00          2,356       4.00
</TABLE>

IMPACT OF INFLATION

Unlike  most  industrial  companies,  the assets and  liabilities  of  financial
institutions  such as the Company are primarily  monetary in nature.  Therefore,
interest rates have a more significant impact on the Company's  performance than
do the  effects of changes  in the  general  rate of  inflation  and  changes in
prices.  In  addition,  interest  rates  do not  necessarily  move  in the  same
magnitude  as the  prices  of  goods  and  services.  As  discussed  previously,
management seeks to manage the relationships  between interest  sensitive assets
and  liabilities in order to protect against wide rate  fluctuations,  including
those resulting from inflation.








                                       10
<PAGE>


                           PART II - OTHER INFORMATION




ITEM 6.  Exhibits and Reports on Form 8-K.

a)       Exhibits

     Exhibit No.
     From Item 601 of
     Regulation S-B                        Description
     --------------                        -----------

            27                             Financial Data Schedule

b)       Reports on form 8-K.      None.








                                       11
<PAGE>



                                   SIGNATURES


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


                               Southcoast Financial Corporation
                               --------------------------------
                                  Registrant


     May 15, 2000                  s/L. Wayne Pearson
Date:---------------           By:----------------------------------------------
                                    L. Wayne Pearson
                                    President and Chief Executive Officer

     May 15, 2000                  s/Robert M. Scott
Date:---------------           By:----------------------------------------------
                                    Robert M. Scott
                                    Executive Vice President and Chief Financial
                                    Officer



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                                 EXHIBIT INDEX


Exhibit No.                   Description                        Page

   27                         Financial Data Schedule












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