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:
   September 30, 2001                                           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                     559,140
     ----------------------------       ------------------------------------
               Class                      Outstanding at November 12, 2001

Transitional Small Business Disclosure Format (Check One):

Yes                   No    X
    -----------          ------------

<PAGE>

                         PART I. FINANCIAL INFORMATION
Item 1.  Financial Statements

                          SARASOTA BANCORPORATION, INC.
                                 AND SUBSIDIARY

                           CONSOLIDATED BALANCE SHEETS
                    September 30, 2001 and December 31, 2000
                                   (UNAUDITED)



<TABLE>

ASSETS                                                September 30, 2001        December 31, 2000
-------------------------------------------------     ------------------        -----------------

<S>                                                          <C>                        <C>
Cash and due from banks                                    $   3,769,686                2,319,123
Federal funds sold                                               510,000                1,656,000
Securities available for sale                                 24,835,374               18,072,356
Loans (Net)                                                   95,570,495               92,216,319
Accrued interest receivable                                      679,350                  716,706
Foreclosed real estate                                           227,916                  238,716
Repossessed assets                                                66,984                  369,890
Furniture and equipment (Net)                                    275,696                  310,031
Deferred income taxes                                            241,802                  360,116
Other assets                                                      44,770                  301,448
                                                                 -------                  -------

     TOTAL ASSETS:                                         $ 126,222,073              116,560,705
                                                           ==============             ===========



LIABILITIES AND STOCKHOLDERS' EQUITY
-------------------------------------------------

LIABILITIES:

Noninterest-bearing demand deposits                        $   9,691,945               13,187,296
NOW and money market deposits                                 21,335,582               29,715,138
Savings deposits                                                 819,696                  734,369
Other time deposits                                           75,776,312               57,166,856
                                                             -----------               ----------
  Total deposits                                             107,623,535              100,803,659
                                                            ------------              -----------

FHLB advances                                                  3,000,000                3,000,000
Repurchase agreements                                          6,216,255                3,949,178
Income taxes payable                                              26,600                        -
Accrued interest payable                                         266,975                  269,182
Other liabilities                                                138,013                  143,833
                                                                --------                  -------

     TOTAL LIABILITIES:                                      117,271,378              108,165,852
                                                            ------------              -----------
COMMITMENTS AND CONTINGENCIES

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 559,140 shares                                      5,591                    5,591
Additional paid-in capital                                     5,588,927                5,588,927
Treasury stock, at cost                                           (3,474)                  (7,781)
Retained earnings                                              3,221,905                2,871,824
Accumulated other comprehensive income (loss)                    137,746                  (63,708)
                                                                --------                 --------

   TOTAL STOCKHOLDERS' EQUITY:                                 8,950,695                8,394,853
                                                              ----------                ---------


   TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY:             $ 126,222,073              116,560,705
                                                          ==============              ===========
</TABLE>


                                        1
<PAGE>



                         SARASOTA BANCORPORATION, INC.
                                SARASOTA, FLORIDA

                        CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE MONTHS
      ENDED SEPTEMBER 30, 2001 AND SEPTEMBER 30, 2000 FOR THE NINE MONTHS ENDED
      SEPTEMBER 30, 2001 AND SEPTEMBER 30, 2000
                                   (UNAUDITED)


<TABLE>
                                                    THREE MONTHS         THREE MONTHS            NINE MONTHS           NINE MONTHS
                                                        ENDED                ENDED                   ENDED                ENDED
                                                       9/30/01              9/30/00                 9/30/01              6/30/00
                                                       -------              -------                 -------              -------
INTEREST INCOME:

<S>                                                  <C>                  <C>                    <C>                    <C>
Loans receivable and fees on loans                  $2,144,173            2,071,563              6,563,869              5,801,070
Investment securities                                  274,394               11,858                816,169                134,417
Federal funds sold                                      60,578              313,816                237,687                945,576
                                                       -------             --------               --------                -------

     TOTAL INTEREST INCOME:                          2,479,145            2,397,237              7,617,725              6,881,063

INTEREST EXPENSE:

Deposits                                             1,231,805            1,174,018              3,786,186              3,363,053
Other                                                   96,789               70,751                316,111                162,252
                                                       -------              -------               --------                -------


     TOTAL INTEREST EXPENSE:                         1,328,594            1,244,769              4,102,297              3,525,305
                                                    ----------           ----------             ----------              ---------

     NET INTEREST INCOME:                            1,150,551            1,152,468              3,515,428              3,355,758

Provision for loan losses                              710,000              147,000                863,850                293,600
                                                      --------             --------               --------                -------

     NET INTEREST INCOME AFTER
        PROVISION FOR LOAN LOSSES                      440,551            1,005,468              2,651,578              3,062,158
                                                      --------           ----------             ----------              ---------

Noninterest income:

Service charges on deposit accounts                     67,506               70,982                201,459                185,006
Net gain (loss) from sale of repossessed assets        (12,660)                   -               (155,913)                     -
Other income                                            62,249               58,674                129,219                237,240
                                                       -------              -------               --------                -------

    Total noninterest income                           117,095              129,656                174,765                422,246
                                                      --------             --------               --------                -------


Noninterest expenses:

Salaries and employee benefits                         241,773              239,127                719,676                734,810
Occupancy                                               94,524               98,031                278,344                270,601
Data processing                                         46,605               39,081                140,161                141,652
Professional Fees                                      161,656               58,484                307,925                163,549
Loan Costs                                             119,196              184,119                432,826                501,400
Other                                                   99,306              100,544                333,018                326,669
                                                       -------             --------               --------                -------

     Total noninterest expenses                        763,060              719,386              2,211,950              2,138,681
                                                      --------             --------             ----------              ---------

     INCOME BEFORE TAXES                              (205,414)             415,738                614,393              1,345,723

     TAX PROVISION (BENEFIT)                           (82,000)             144,000                264,311                501,275
                                                       --------            --------               --------                -------

     NET INCOME (LOSS)                              $ (123,414)             271,738                350,082                844,448
                                                    ----------              -------                -------                -------



INCOME (LOSS) PER SHARE OF COMMON STOCK                  (0.22)                0.49                   0.63                   1.51
                                                         -----                 ----                   ----                   ----
</TABLE>


                                        2
<PAGE>

                          SARASOTA BANCORPORATION, INC.
                                 AND SUBSIDIARY

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
              FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000

                                   (UNAUDITED)


<TABLE>
                                                                                            NINE MONTHS                 NINE MONTHS
                                                                                               ENDED                        ENDED
                                                                                              9/30/01                      9/30/00
                                                                                        -----------------           ----------------


CASH FLOWS FROM OPERATING ACTIVITY:

<S>                                                                                          <C>                            <C>
NET INCOME                                                                                   $    350,082                   844,448
ADJUSTMENTS TO RECONCILE NET INCOME TO NET
  CASH FLOWS FROM OPERATING ACTIVITIES:

Depreciation and amortization                                                                      39,921                    41,777
Provision for Loan Losses                                                                         863,850                   293,600
Deferred tax benefit                                                                                 --                        --
Net Change In -
  Accrued Interest Receivable                                                                      37,356                  (157,878)
  Foreclosed real estate                                                                           10,800                  (186,354)
  Repossessed assets                                                                              302,906                   268,876
  Deferred income taxes                                                                              --                      70,477
  Other assets                                                                                    252,691                   216,203
  Income taxes payable                                                                             26,600                   (35,300)
  Accrued interest payable andther                                                                 (8,029)                  148,277
                                                                                             ------------              ------------

  NET CASH PROVIDED BY OPERATING ACTIVITIES:                                                      1,876,177               1,504,126
                                                                                             ------------              ------------


CASH FLOW FROM INVESTING ACTIVITIES:

Purchase of investment securities (Net)                                                        (6,443,250)                 (379,850)
Purchase of furniture & equipment                                                                  (1,598)                     --
Increase in Loans (Net)                                                                        (4,218,026)              (14,538,707)
                                                                                             ------------              ------------

NET CASH USED IN INVESTING ACTIVITIES:                                                        (10,662,874)              (14,918,557)
                                                                                             ------------              ------------

CASH FLOW FROM FINANCING ACTIVITIES:

Proceeds from sale of treasury stock                                                                4,307                     6,507
Net Increase in Deposits                                                                        6,819,876                 7,408,818
Increase in FHLB borrowing                                                                           --                   3,000,000
Increase in repurchase agreements                                                               2,267,077                 2,998,587
                                                                                             ------------              ------------

NET CASH PROVIDED BY FINANCING ACTIVITIES:                                                      9,091,260                13,413,912
                                                                                             ------------              ------------

NET INCREASE (DECREASE) IN CASH:                                                                  304,563                      (519)

CASH AT BEGINNING OF PERIOD:                                                                    3,975,123                 4,034,503
                                                                                             ------------              ------------

CASH AT END OF PERIOD:                                                                          4,279,686                 4,033,984
                                                                                             ============              ============

Supplemental Disclosure of Cash Flow Information -
  Cash Paid During The Period For Interest:                                                  $  4,104,504                 3,525,305
                                                                                             ============                 =========
</TABLE>


                                        3
<PAGE>



                          SARASOTA BANCORPORATION, INC.
                                 AND SUBSIDIARY

                    Notes to Financial Statements (Unaudited)
                               September 30, 2001

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 nine-month  period
ended September 30, 2001 are not necessarily  indicative of the results that may
be expected  for the year ending  December 31,  2001.  For further  information,
refer  to  the  financial  statements  and  footnotes  thereto  included  in the
Company's Annual Report on Form 10-KSB for the year ended December 31, 2000.

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  and  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 September 30, 2001, no Investment Securities
       ---------------------
were carried as "Held to Maturity."

       Available for Sale Securities. As of September 30, 2001, the market value
       -----------------------------
of "Available for Sale Securities" was $24,835,374.

       Earnings (Loss) Per Share. Earnings (loss) per share were ($0.22) for the
       -------------------------
quarter ended September 30, 2001 and may not be indicative of projected earnings
(losses) for the year ending December 31, 2001.


                                        4
<PAGE>


       Income Taxes.  The Company will be subject to taxation  whenever  taxable
       ------------
income is generated.  As of September 30, 2001, the  provision  for income taxes
was $264,311.

       Statement of Cash Flows.  The presentation of the statement of cash flows
       -----------------------
is  condensed  as  permitted  by  the  Securities  and  Exchange Commission. 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 these  services  during the nine months ended  September 30, 2001
were $8,419. Another director of the Company 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,  were
$34,004 for the nine months ended September 30, 2001.  Another director provides
accounting services for the Company. Fees for these services for the nine months
ended September 30, 2001 were $2,100.

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
third quarter ended September 30, 2001.

Results of Operations for the Three and Nine Months Ended September 30, 2001

     The  Company's  net loss for the third  quarter of 2001 was  ($123,414),  a
145.4%  decrease as  compared  to net income of $271,738  for the same period in
2000.  Earnings  (loss) per share  decreased from $0.49 to ($0.22) per share for
the third  quarter of 2001 as compared to the same period in 2000.  The decrease
in net  income  for the third  quarter of 2001 is  primarily  attributable  to a
$563,000,  or 383.0%,  increase in the  provision for loan losses as a result of
the loan  relationship  with  First  Florida  Financial  as  discussed  below in
"Financial Condition".

     The Company's  net income for the nine months ended  September 30, 2001 was
$350,082  compared  to  $844,448  for the same  period in 2000,  a  decrease  of
$494,366 or 58.5%.   Earnings per share  decreased  $0.88 from $1.51 to $0.63
per share for the nine-month  period ended September 30, 2001 as compared to the
same  period in 2000.  The  decrease  in net  income for the nine  months  ended
September 30, 2001 was primarily attributable to a $570,250 or a 194.2% increase
in the  provision  for  loan  losses.  The  decrease  in  net  income  was  also
attributable to net losses from the sale of repossessed  assets and professional
fee expenses,  which increased $155,913 and $144,376,  respectively,  during the
nine-month  period  ended  September  30, 2001 as compared to the same period in
2000.

     Interest and fees on loans increased $762,799, or 13.1%, for the nine-month
period ended September 30, 2001. Interest on investment  securities increased by
$681,752,  or 507.2%, while interest on Federal Funds sold decreased by $707,889
or 74.9% for the nine-month period ended September 30, 2001.


                                        5
<PAGE>


     Net interest  income after  provision for loan losses for the third quarter
of 2001 decreased $564,917,  or 56.2%, to $440,551 from $1,005,468 for the third
quarter of 2000. The decrease in net interest income resulted  primarily from an
increase in the provision for loan losses. The net interest margin for the third
quarter  ended  September  30,  2001 was  3.57% on  average  earning  assets  of
$121,863,245  for the  period  stated.  For the same  period  in  2000,  the net
interest  margin  was 4.25%,  on average  earning  assets of  $103,419,787.  The
decrease in net interest margin is reflective of higher priced interest  bearing
liability  accounts not adjusting to economic  changes and decreases in interest
rates as rapidly as variable rate asset accounts.

     Net interest  income  after  provision  for loan losses for the  nine-month
period ended September 30, 2001 decreased $410,580, or 13.4%, to $2,651,578 from
$3,062,158  for the  comparable  period in 2000.  The  decrease in net  interest
income resulted primarily from an increase in the provision for loan losses. The
net interest  margin for the nine months ended  September  30, 2001 was 3.69% on
average  earning  assets of  $121,605,043  for the period  stated.  For the same
period in 2000, the net interest  margin was 4.28%, on average earning assets of
$102,357,202. The decrease in net interest margin is reflective of higher priced
interest  bearing  liability  accounts  not  adjusting  to economic  changes and
decreases in interest rates as rapidly as variable rate asset accounts.

     Non-interest  expense for the third quarter of 2001 increased  $43,674,  or
6.1%,  as compared to the third  quarter of 2000.  Non-interest  expense for the
nine-month  period  ended  September  30,  2001  increased  $73,269 or 3.4%,  as
compared to the same period in 2000. These increases are primarily the result of
increased professional service fees.

     Non-interest  income decreased  $12,561,  or 9.7%, during the third quarter
ended  September  30,  2001 as  compared  to the same  period  in 2000.  For the
nine-month  period ended  September  30,  2001,  non-interest  income  decreased
$247,481, or 58.6% to $174,765 compared to $422,246 for the same period in 2000.
These  decreases  are  primarily  attributable  to the  losses  on the  sale  of
repossessed  assets  associated with the First Florida  Financial  consumer loan
portfolio.  During the nine-month  period ended  September 30, 2001, the Company
reported losses on the sale of repossessed assets of $155,913 compared to $0 for
the same period in 2000. These losses on sales of repossessed assets are largely
due to  increased  charge-offs  of loans  during the first  nine  months of 2001
related  to  the  First  Florida  Financial   consumer  loan  portfolio.   Gross
charge-offs,  including  losses on sales of repossessed  assets  relating to the
First Florida Financial loan portfolio,  totaled $817,472 during this nine-month
period.  Sarasota Bank has settled its lawsuit  against First Florida  Financial
and has  purchased  the  servicing  rights for these  consumer  loans.  For more
information  regarding  the status of the legal  proceedings  with First Florida
Financial, see "Item 1. Legal Proceedings" in Part II of this Form 10-QSB.

Financial Condition

     For the nine-month period ended September 30, 2001, the Company experienced
continued  asset,  loan and  deposit  growth.  Total  assets  increased  8.3% to
$126,222,073 at September 30, 2001 from  $116,560,705 at December 31, 2000. This
increase is  primarily  attributable  to an  increase in loans of  approximately
$3,354,176  and an increase in securities  available  for sale of  approximately
$6,763,018 during this period.

     The  allowance  for loan loss  provision  for the third quarter of 2001 was
$710,000 compared to $147,000 in the third quarter of 2000. Although there was a
large  increase  in  the  allowance  for  loan  loss  provision during the third


                                       6
<PAGE>

quarter, the Company anticipates that the allowance for loan loss provision will
continue to increase by an additional $150,000 over the next three months due to
the potential for future losses in connection  with the First Florida  Financial
consumer loan portfolio. The reserve balance for loan losses as of September 30,
2001 was $1,217,166 as compared to $1,036,767 at December 31, 2000. At September
30,  2001,  the  allowance  for loan  losses  represented  1.26% of total  loans
outstanding  compared  to  1.03%  at  December  31,  2000.  Although  management
considers the allowance to be adequate at September 30, 2001, management expects
to increase the allowance  throughout the remainder of fiscal 2001, as discussed
above,  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 third  quarter of 2001,  there were  charged-off  loans in the
aggregate amount of $746,575 and total recoveries of $65,264,  or a net of 0.70%
of total loans outstanding.  The ratio of non-performing  loans (including loans
90 days or more past due) to total  outstanding loans was 0.85%, as of September
30, 2001 compared to 0.50% for the same period in 2000. As of December 31, 2000,
non-performing loans were $1,163,000, or 1.24%, of total loans outstanding.  The
non-performing  loans are primarily consumer loans and all of the non-performing
loans are fully secured. There were no other loans past due in excess of 90 days
as of September 30, 2001.

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% for core  capital
(Tier 1),  8% for total  risk-based  capital,  and at least 3% 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% level.  The Company's Tier 1 risk-based  capital ratio
at September 30, 2001 was 8.70%, its total  risk-based  capital ratio was 9.90%,
and its leverage ratio was 7.03%.

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 88.3%  at  September  30,  2001,  cash and due from  banks of
$3,769,686  and federal funds sold of $510,000,  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.

Cautionary Note Regarding Forward-Looking Statements

     The Company may,  from time to time,  make written or oral  forward-looking
statements,  including  statements  contained in the Company's  filings with the
Securities  and  Exchange  Commission  (the  "Commission")  and its  reports  to
shareholders.  Such forward-looking  statements are  made based  on management's


                                        7
<PAGE>

belief as well as assumptions made by, and information  currently  available to,
management  pursuant  to "safe  harbor"  provisions  of the  Private  Securities
Litigation  Reform  Act  of  1995.  The  Company's  actual  results  may  differ
materially from the results anticipated in these forward-looking  statements due
to a variety of factors,  including  governmental  monetary and fiscal policies,
deposit levels, loan demand, loan collateral values, securities portfolio values
and interest rate risk  management;  the effects of  competition  in the banking
business from other commercial banks,  savings and loan  associations,  mortgage
banking firms, consumer finance companies,  credit unions,  securities brokerage
firms,  insurance  companies,  money  market  mutual  funds and other  financial
institutions  operating in the Company's  market area and  elsewhere,  including
institutions operating through the Internet; changes in acquisitions; failure of
assumptions underlying the establishment of reserves for loan losses,  including
the value of  collateral  underlying  delinquent  loans and other  factors.  The
Company  cautions  that such  factors are not  exclusive.  The Company  does not
undertake to update any forward-looking statements that may be made from time to
time by, or on behalf of, the Company.


                                        8
<PAGE>


PART II. OTHER INFORMATION

Item 1.     Legal Proceedings
-------     -----------------

       On March  16,  2001,  the Bank  filed a  lawsuit  against  First  Florida
Financial Ltd., Inc., and its principals ("First Florida").  The lawsuit, styled
"Sarasota Bank v. First Florida Financial Ltd., Inc., F. Robert Furlong,  Joseph
Furlong and Jean Furlong,  In the Circuit Court of the Twelfth  Judicial Circuit
in and for Sarasota  County,  Florida,  2001-CA-3652-NC,"  which alleged,  among
other  things,  that First  Florida  breached its contract with the Bank for the
origination  and  servicing  of  automobile  loans  (the  "Loan  Contract").  In
addition,  the Bank alleged that First Florida had interfered  with contract and
business  relations of the Bank. The lawsuit arose out of the Bank's termination
of the Loan Contract with First Florida, effective February 1, 2001.

     On March 19, 2001,  First Florida filed a separate lawsuit against the Bank
regarding  the  Loan  Contract.  The  Court  subsequently  consolidated  the two
lawsuits.  As a result,  on April  13,  2001,  First  Florida  filed an  Answer,
Affirmative  Defenses and Counterclaim in response to the Bank's complaint.  The
Counterclaim filed by First Florida alleged,  among other things,  that the Bank
breached the Loan Contract,  tortiously interfered with First Florida's business
relationship with a competing financial  institution,  used unfair and deceptive
trade practices in its communications  with borrowers whom First Florida alleged
were customers,  and breached an implied  covenant of good faith in its dealings
with First Florida.

     On October 26, 2001,  the Bank and First Florida  entered into a Settlement
Agreement regarding the Loan Contract. Pursuant to the Settlement Agreement, the
Bank purchased the loan servicing rights for the automobile loans under the Loan
Contract  and agreed to pay costs  associated  with an  accounting  of the loans
originated  and  serviced  under the Loan  Contract.  The  Settlement  Agreement
contains a confidentiality provision pursuant to which the specific terms of the
settlement  may not be  disclosed  by the parties  unless  mandated by law.  The
Company  has   determined,   upon  advice  from  counsel  and  its   independent
accountants, that the purchase price for the servicing rights is not material to
either the  financial  condition of the Bank or, on a  consolidated  basis,  the
Company,  and,  therefore,  under the  terms of the  Settlement  Agreement,  the
purchase price for the loan servicing  rights may not be disclosed.  By entering
into the  Settlement  Agreement,  neither  the Bank nor  First  Florida  and its
principals admit any liability, fault or wrongdoing.

     There are no other material pending legal  proceedings to which the Company
or the Bank is a party or of which any of their properties are subject;  nor are
there  material  proceedings  known to the  Company  to be  contemplated  by any
governmental authority; nor are there material proceedings known to the Company,
pending or  contemplated,  in which any  director,  officer or  affiliate or any
principal  security  holder  of  the  Company,  or any  associate  of any of the
foregoing is a party or has an interest adverse to the Company or the Bank.

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

            (a)   Exhibits.  No  exhibits  are  required  to  be filed with this
                  --------
                  report.

            (b)   Reports on Form 8-K.  No reports on Form 8-K were filed during
                  -------------------
                  the quarter ended September 30, 2001.


                                        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: November 14, 2001   By: /s/ Christine L. Jennings
                               -------------------------------------------------
                               Christine L. Jennings
                               President (Principal Executive Officer)



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