SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB
                QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934


For Quarterly Period Ended                              Commission File Number:
         March 31, 1998                                        33-41045


                          SARASOTA BANCORPORATION, INC.
-------------------------------------------------------------------------------

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



            Florida                                             65-0235255
-------------------------------------------------------------------------------
(State or other jurisdiction of                              (I.R.S. Employer
 incorporation or organization)                             Identification No.)



           Two North Tamiami Trail, Suite 100, Sarasota, Florida 34236
           -----------------------------------------------------------
                    (Address of principal executive offices)



                                 (941) 955-2626
          -----------------------------------------------------------
                           (Issuer's telephone number)



                                 Not applicable
           -----------------------------------------------------------
             (Former name, former address and former fiscal year, if
                           changed since last report)


Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the Securities Exchange Act of 1934 during the last 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
                                -----

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

    Common Stock, $.01 Par Value                         536,861
------------------------------------       ------------------------------------
               Class                            Outstanding at May 8, 1998

Transitional Small Business Disclosure Format (Check One):

Yes      No   X
            -----
                                       -1-

<PAGE>



                          PART I. FINANCIAL INFORMATION

Item 1.          Financial Statements

PART I. FINANCIAL INFORMATION
                          ITEM 1. Financial Statements
                          SARASOTA BANCORPORATION, INC.
                                 AND SUBSIDIARY

                           CONSOLIDATED BALANCE SHEETS
                      MARCH 31, 1998 and December 31, 1997
                                   (UNAUDITED)


ASSETS                                         March 31, 1998   December 31,1997
---------------------------------------        --------------   ----------------
Cash and Due From Banks                          $ 2,565,965        1,626,155
Federal Funds Sold                                 6,962,000        4,269,000
Securities held to maturity                             -                -
Securities available for sale                     11,723,863       13,181,407
Loans (net)                                       44,835,951       39,590,147
Accrued interest receivable                          339,159          380,541
Foreclosed real estate                                71,673           71,673
Furniture and equipment.net                          415,888          428,133
Deferred income taxes                                186,200          150,904
Other assets                                          29,720          222,570
                                                 -----------      -----------

     TOTAL ASSETS:                               $67,130,419       59,920,530
                                                 ===========      ===========
                                                   

                  LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES:
Demand deposits                                  $12,459,121        6,678,554
NOW and money market deposits                      9,676,358       12,878,302
Savings deposits                                     860,432          798,833
Other time deposits                               36,921,162       34,021,075
                                                 -----------      -----------
   Total deposits                                 59,917,073       54,376,764

Repurchase agreements                              1,394,214          614,445
Accrued interest payable                             116,069          110,288
Other liabilities                                    219,172          151,447
                                                 -----------      -----------

      TOTAL LIABILITIES:                          61,646,528       55,252,944
                                                 -----------      -----------

STOCKHOLDERS' EQUITY:
Preferred stock, $.10 Par Value. Authorized 1,000,000 shares:
    None Issued or Outstanding
Common Stock $.01 Par Value. Authorized 10,000,000 shares:
    Outstanding 536,861 shares                         5,369            4,715
Additional Paid-In Capital                         5,363,241        4,710,285
Treasury stock, at cost                              (21,098)         (21,098)
Accumulated Deficit                                   63,823          (86,415)
Net unrealized appreciation on
         available-for-sale securities(net)           72,556           60,099
                                                ------------     ------------

    TOTAL STOCKHOLDERS' EQUITY:                    5,483,891        4,667,586
                                                ------------     ------------

    TOTAL LIABILITIES AND
      STOCKHOLDERS' EQUITY:                     $ 67,130,419       59,920,530
                                                ============       ==========
                                                    



REFER TO NOTES TO THE FINANCIAL STATEMENTS.      

                                       -2-

<PAGE>



                          SARASOTA BANCORPORATION, INC.
                                SARASOTA,FLORIDA

                      CONSOLIDATED STATEMENTS OF OPERATIONS
               FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997

                                   (UNAUDITED)

                                                  THREE MONTHS    THREE MONTHS
                                                     ENDED           ENDED
                                                    03/31/98        03/31/97
                                                  -----------     -----------
INTEREST INCOME:
----------------

Interest and Fees on Loans                         1,052,524          742,644
Interest on Federal Funds Sold                        50,759           35,390
Interest on Investment Securities                    190,930          180,863
                                                   ---------        ---------

     TOTAL INTEREST INCOME:                        1,294,213          958,897

INTEREST EXPENSE:

Interest on Deposits                                 614,184          443,525
Interest on Borrowings                                  -                 139
Interest on Repurchase agreements                     13,115           16,547

      TOTAL INTEREST EXPENSE:                        627,299          460,212
                                                   ---------        ---------

      NET INTEREST INCOME                            666,914          498,685

Provision For Possible Loan Losses                    13,700           48,500

      NET INTEREST INCOME(LOSS) AFTER
        PROVISION FOR POSSIBLE LOAN LOSSES:          653,214          450,185

OTHER OPERATING INCOME:

Service Charges on Deposit Accounts                   25,936           32,550
Other Fees and Other Income                           29,704           24,731
                                                   ---------        ---------

    NET OTHER OPERATING INCOME:                       55,640           57,281

OPERATING EXPENSES:

Salaries and employee benefits                       204,537          169,690
Occupancy                                             82,864           75,455
Data processing                                       36,981           12,880
Professional Fees                                     34,418           34,464
Other                                                108,316           74,171
                                                   ---------        ---------

    TOTAL OTHER OPERATING EXPENSES:                  467,116          366,660

    INCOME BEFORE TAXES                              241,738          140,806

    PROVISION FOR TAXES                               91,500            3,000
                                                   ---------        ---------

    NET INCOME                                       150,238          137,806

INCOME PER SHARE                                        0.32             0.29
                                                   =========        =========
                                        
REFER TO NOTES TO THE FINANCIAL STATEMENTS.        

                                       -3-

<PAGE>



                          SARASOTA BANCORPORATION,INC.
                                 AND SUBSIDIARY

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
               FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997
                                   (UNAUDITED)

                                                  THREE MONTHS    THREE MONTHS
                                                     ENDED           ENDED
                                                    03/31/98        03/31/97
                                                  -----------     -----------

CASH FLOWS FROM OPERATING ACTIVITY:

NET INCOME                                       $   150,238          137,806
ADJUSTMENTS TO RECONCILE NET LOSS TO NET
       CASH FLOWS FROM OPERATIONS:

Depreciation                                          12,245           16,349
Amortization of Organizational Costs                     -              9,707
Provision for Loan Losses                             13,700           48,500
(Increase)Decrease in Accrued
      Interest Receivable                             41,382           30,878
(Increase)Decrease in Foreclosed real estate             -               -
(Increase)Decrease in Deferred income taxes          (35,296)         (15,912)
(Increase)Decrease in other assets                   192,850            4,758
(Decrease)Increase in Repurchase agreements          779,769          (63,041)
(Decrease)Increase in Accrued Interest Payable         5,781           16,595
(Decrease)Increase in other liabilities               67,725          (29,701)
                                                 -----------      -----------

NET CASH USED IN OPERATING ACTIVITIES:             1,228,394          155,939
                                                 -----------      -----------

CASH FLOW FROM INVESTING ACTIVITIES:

Purchase of investment securities, Net             1,470,001       (1,330,274)
Purchase of furniture & equipment                      -               -
Increase in Loans, Net                            (5,259,504)      (1,338,486)

NET CASH USED IN INVESTING ACTIVITIES:            (3,789,503)      (2,668,760)


CASH FLOW FROM FINANCING ACTIVITIES:

Proceeds from directors stock warrants               653,610            -
Net Increase in Deposits                           5,540,309        2,276,172
                                                 -----------      -----------

NET CASH PROVIDED BY FINANCING ACTIVITIES:         6,193,919        2,276,172

NET INCREASE (DECREASE) IN CASH:                   3,632,810         (236,649)

CASH AS BEGINNING OF PERIOD:                       5,895,155        6,185,658
                                                 -----------      -----------

CASH AT END OF PERIOD:                             9,527,965        5,949,009
                                                 -----------      -----------

Supplemental Disclosure of Cash Flow
   Information-
   Cash Paid During The Period For Interest:     $   627,299          460,212
                                                 -----------      -----------



REFER TO NOTES TO THE FINANCIAL STATEMENTS.       

                                       -4-

<PAGE>



                          SARASOTA BANCORPORATION, INC.
                                 AND SUBSIDIARY
                    Notes to Financial Statements (Unaudited)
                                 March 31, 1998

Note 1 - Basis of Presentation

         The accompanying  financial statements have been prepared in accordance
with generally accepted accounting  principles for Interim Financial  Statements
and with the instructions to Form 10-QSB.  Accordingly,  they do not include all
the  information  and  footnotes  required  by  generally  accepted   accounting
principles for complete financial statements. In the opinion of management,  all
adjustments (consisting of normal recurring accruals) considered necessary for a
fair  presentation  have been  included.  Operating  results for the three month
period ended March 31, 1998 are not  necessarily  indicative of the results that
may be expected for the year ended December 31, 1998.  For further  information,
refer  to  the  financial  statements  and  footnotes  thereto  included  in the
Company's Form 10-KSB for the year ended December 31, 1997.

Note 2 - Summary of Organization

         Sarasota BanCorporation,  Inc. Sarasota,  Florida (the "Company"),  was
incorporated  under the laws of the State of Florida on December 28,  1990,  for
the purpose of becoming a bank  holding  company  with  respect to a proposed de
novo bank, Sarasota Bank (the "Bank") Sarasota,  Florida.  Prior to formation of
the  Company,   the  Company's  organizers  formed  a  partnership  to  commence
organizing a bank holding company.  The partnership was subsequently merged into
the Company as of December  30,  1990.  As a result,  each  organizers'  capital
account in the partnership was exchanged for common stock of the Company and all
assets  of the  partnership  were  contributed  as  capital  to the  Company  in
consideration  of the  issuance  of its  common  stock  to  the  organizers.  On
September  15, 1992,  the  organizers  received  approval from the Office of the
Comptroller of the State of Florida for the  organization of a new state banking
association;  an  approval  was also  received  on May 29, 1992 from the Federal
Reserve Board to form a one-bank  holding  company.  On September 15, 1992,  the
Company  acquired 100% of the Bank's  capital  stock by injecting  $4.25 million
into the Bank's capital accounts.

Note 3 - Significant Accounting Policies

         The  accounting  and  reporting  policies  of the  Company  conform  to
generally accepted accounting principles and to general practices in the banking
industry. The following summarizes the more significant of these policies:

         Investment Securities.  
         ----------------------  
         As of March 31, 1998 no Investment  Securities were carried as "Held to
         Maturity".


         Available for Sale Securities.  
         ------------------------------  
         As  of  March  31,  1998  the  market  value  of  "Available  for  sale
         Securities" was $11,723,863.

                                       -5-

<PAGE>



         Organizational  Costs.  
         ----------------------  
         In accordance with FASB Statement No. 7, the Company and the subsidiary
         Bank capitalized all direct costs that were incurred in the expectation
         that they would generate future revenues and otherwise  benefit periods
         after  the Bank  opened  for  business.  These  capitalized  costs,  or
         organizational costs, are amortized over a sixty-month period using the
         straight line method. As of March 31, 1998,  there were no  unamortized
         organizational costs.

         Profit  (Loss)  Per Share.  
         --------------------------  
         Profit per share was $.32 for the quarter  ended March 31, 1998 and may
         not be  indicative of projected  earnings  (losses) for the year ending
         December 31, 1998.

         Income Taxes.  
         -------------  
         The Company  will be subject to  taxation  whenever  taxable  income is
         generated.  As of March 31, 1998,  the  provision  for income taxes was
         $91,500.

         Statement of Cash Flows.  
         ------------------------  
         The  presentation  of the  statement  of cash  flows  is  condensed  as
         permitted by the Securities and Exchange  Commission  (the "SEC").  The
         classification  of cash flows is consistent  with the  requirements  of
         FASB Statement No. 95.

Note 4 -  Related Parties

         One of the Company's directors serves as legal counsel for the Company.
Gross fees for services  provided by this director during the three months ended
March 31, 1998 were $6,368.  This amount  includes sums paid by the Bank to such
director's  law firm as well as sums paid by Bank  customers and cost  advances.
Another director provides advertising, printing and other miscellaneous services
to the Company. The gross billings,  which include costs passed through to other
companies  providing  services to the Company,  was $23,782 for the three months
ended March 31, 1998.  Another  director  provides  accounting  services for the
Company.  For the three  months ended March 31,  1998,  fees for these  services
amounted to $600.


                                       -6-

<PAGE>



Item 2.           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                  CONDITION AND RESULTS OF OPERATIONS
                  --------------------------------------------------------------

         The  following  discussion  addresses  the factors  that have  affected
Sarasota BanCorporation,  Inc.'s (the "Company") financial condition and results
of operations as reflected in the Company's unaudited  financial  statements for
the first quarter ended March 31, 1998.

Results of Operations

         The Company's net income for the first quarter of 1998 was $150,238,  a
9.0%  increase  compared to $137,806  for the same period in 1997.  Earnings per
share  increased  to $0.32 in the first  quarter of 1998  compared  to $0.29 per
share for the same  period in 1997.  The  increase  in net  income is  primarily
attributable  to a  41.7%  increase  in  interest  and  fees  on  loans  for the
three-month period ended March 31, 1998.  Interest on investment  securities and
on Federal Funds Sold also showed increases of 5.6% and 43.4%, respectively, for
the three-month period ended March 31, 1998.

         Net interest  income after the  provision for loan losses for the first
quarter  of 1998  increased  $168,229  or 33.7% to  $666,914  from a balance  of
$498,685 for the first  quarter of 1997.  The  increase in net  interest  income
resulted primarily from an increase in loan volume and a corresponding  increase
in interest and fees on loans.  The cost of deposits  averaged  4.42% during the
first quarter of 1998  compared to 4.17% for the first quarter of 1997.  The net
interest  margin for the three  months ended March 31, 1998 was 4.26% on average
earning  assets of  $60,873,900.  For the same period in 1997,  the net interest
margin was 4.13% on average earning assets of  $46,984,000.  The increase in net
interest margin is reflective of growth in higher priced consumer loan accounts.

         Non-interest  expense for the first quarter of 1998 increased  $100,456
or 27.4% as compared to the first  quarter of 1997.  This  increase is primarily
the result of increased employee salaries and benefits, data processing fees and
loan servicing fees.

         Non-interest  income  decreased $1,641 or 2.9% during the first quarter
ended March 31, 1998 as  compared  to the same period in 1997.  The  decrease in
non-interest  income is  attributable  to a decrease in Other Real Estate  Owned
rental income.

Financial Condition

         For  the  three  month  period  ended  March  31,  1998,   the  Company
experienced  continued  asset,  loan and deposit growth.  Total assets increased
12.0% to  $67,130,419  for the three  month  period  ended  March 31,  1998 from
$59,920,530 at December 31, 1997. This increase is primarily  attributable to an
increase in loans of approximately $5.0 million and an increase in Federal Funds
Sold of approximately $2.7 million during this period.

         The allowance for loan loss provision for the first quarter of 1998 was
$13,700  compared to $48,500 in the first quarter of 1997.  The reserve  balance
for loan  losses as of March 31,  1998 was  $507,300  as compared to $482,400 at
December 31, 1997. At March 31, 1998, the allowance for loan losses  represented
1.12% of total loans outstanding. Management considers

                                       -7-

<PAGE>



the allowance to be adequate  based upon  evaluations  of specific loans and the
weighting of various loan  categories  as suggested by the Bank's  internal loan
rating  system.  The  provision  for  loan  losses  is based  upon  management's
continuing  analysis  and  evaluation  of  various  factors,  including  current
economic conditions,  the size of the loan portfolio, past loan loss experience,
underlying collateral value, the Bank's internal rating system and other factors
deemed relevant by management.

         Through the first quarter of 1998, there were no charged-off  loans and
recoveries totaled $11,200,  or a net of (.02)% of total loans outstanding.  The
ratio of  non-performing  loans  (including  loans 90 days or more  past due) to
total  outstanding  loans was  $9,401 or .02% of total  outstanding  loans as of
March 31, 1998 compared to $11,000 or .03% of total  outstanding loans as of the
same period in 1997. At year ended December 31, 1997,  non-performing loans were
$11,800 or .02% of total loans  outstanding.  There were no other loans past due
in excess of 90 days as of March 31, 1998.

Capital Adequacy

         Federal banking  regulators have  established  certain capital adequacy
standards required to be maintained by banks and bank holding  companies.  These
regulations  establish  minimums of risk-based  capital of 4.0% for core capital
(tier 1 capital),  8.0% for total risk-based capital,  and at least 3.0% for the
leverage ratio.  Three percent is the minimum leverage ratio for the most highly
rated  banks.  All other banks are required to meet a minimum of at least 100 or
200 basis points above the 3.0% level.  The Company's tier 1 risk-based  capital
ratio at March 31,  1998 was  10.25%,  its total  risk-based  capital  ratio was
11.34%, and its leverage ratio was 7.63%, well above the required minimums.

Liquidity

         The Company  views  liquidity  as the ability to provide for the credit
needs of the market and to provide funds for deposit withdrawals. With a loan to
deposit ratio of 72.32% at March 31, 1998, cash and due from banks of $2,565,965
and federal funds sold of $6,962,000, the Company does not anticipate any events
which would require  liquidity  beyond that which is available  through  deposit
growth or its investment  portfolio.  The Company  actively  manages the levels,
types, and maturities of earning assets in relation to the sources  available to
fund  current and future needs to ensure  adequate  funding will be available at
all times.  There are no known trends or any known  commitments or uncertainties
that will result in the  Company's  liquidity  increasing  or  decreasing in any
material way.

                                       -8-

<PAGE>



                           PART II. OTHER INFORMATION


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

         (a)      The following exhibit is filed with this report:

                  Exhibit No.         Description
                  -----------         -----------

                      27.1            Financial Data Schedule (for SEC use only)

         (b)      Reports on Form 8-K. No reports on Form 8-K were filed during 
                  the quarter ended March 31, 1998.



                                       -9-

<PAGE>



                                     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.


                                    SARASOTA BANCORPORATION, INC


Dated:   May 12, 1998          By:  /s/ Christine L. Jennings
                                    ---------------------------------------
                                    Christine L. Jennings
                                    President (Principal Executive Officer)



                               By:  /s/ Susan K. Flynn
                                    ---------------------------------------
                                    Susan K. Flynn
                                    Vice President and Chief Financial Officer
                                    (Principal Financial and Accounting Officer)



                                      -10-

<PAGE>



                                  EXHIBIT INDEX

Exhibit No.                                             Description
-----------                                             -----------

27.1                                             Financial Data Schedule




                                      -11-