##### Table of Contents



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 ending September 30, 2003
Commission File Number 000-26562

VALRICO BANCORP, INC.




(Exact name of registrant as specified in its Charter)


Florida




(State or other jurisdiction of incorporation or organization)


65-0553757




(I.R.S. employer Identification No.)


1815 East State Road 60, Valrico, Florida 33594




(Address of Principal executive offices and zip code)


(813) 689-1231




(Registrants telephone number, including area code)


Securities registered under Section 12(b) of the Act:

|                    |  |                                          
|------------------- |  | -----------------------------------------
|Title of each Class |  | Name of each exchange
on which registered
|                    |  |                                          
|None                |  | None                                     

Securities registered under Section 12(g) of the Act:
Common Stock, no par value




(Title of Class)


As of September 30, 2003, there were 324,040 shares of common stock
outstanding.

Transitional small business disclosure format (check one):
Yes o   No x





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TABLE OF CONTENTS



|                                                                                      |  |  |  |  |  |  |  | 
|------------------------------------------------------------------------------------- |  |  |  |  |  |  |  | 
|Consolidated Balance Sheets                                                          
|Consolidated Statements Of Income                                                    
|Consolidated Statements Of Income                                                    
|CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY                           
|Consolidated Statements Of Cash Flows                                                
|Consolidated Finacial Statements                                                     
|Managements Discussion and Analysis of Financial Condition and Results of Operations
|Part II                                                                              
|Signatures                                                                           
|Ex-31.1 Section 302 CEO Certification                                                
|Ex-31.2 Section 302 CFO Certification                                                
|Ex-32.1 Section 906 CEO Certification                                                
|Ex-32.2 Section 906 CFO Certification                                                



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##### Table of Contents



Valrico Bancorp, Inc.
And Subsidiary




Consolidated Balance Sheets


|                                                                                                                                         |                                        |                                            |       |                |         |              |       |        |         | 
|---------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------- | ------------------------------------------ | ----- | -------------- | ------- | ------------ | ----- | ------ | ------- | 
|                                                                                                                                         |                                        |                                            |       | September 30,  |         | December 31,
|                                                                                                                                         |                                        |                                            |       | 2003           |         | 2002        
|                                                                                                                                         |                                        |                                            |       |                |         |             
|                                                                                                                                         |                                        |                                            |       | (in thousands)
|Assets                                                                                                                                   |                                        |                                            |       |                |         |              |       |       
|                                                                                                                                         | Cash and Non-Interest Bearing Deposits |                                            | $     | 6,858          |         |              | $     | 9,083  |        
|                                                                                                                                         | Federal Funds Sold                     |                                            |       | 3,908          |         |              |       | 4,157  |        
|                                                                                                                                         | Securities Available for Sale          |                                            |       | 25,213         |         |              |       | 21,133 |        
|                                                                                                                                         | Securities Held to Maturity            |                                            |       | 901            |         |              |       | 1,208  |        
|                                                                                                                                         | Loans, Net                             |                                            |       | 82,440         |         |              |       | 74,402 |        
|                                                                                                                                         | Facilities, Net                        |                                            |       | 3,096          |         |              |       | 2,906  |        
|                                                                                                                                         | Other Real Estate                      |                                            |       | 303            |         |              |       |       |        
|                                                                                                                                         | Accrued Interest Receivable            |                                            |       | 561            |         |              |       | 540    |        
|                                                                                                                                         | Other Assets                           |                                            |       | 1,760          |         |              |       | 1,531  |        
|                                                                                                                                         |                                        |                                            |       |                |         |              |       |       
|                                                                                                                                         |                                        | Total Assets                               |       | $              | 125,040 |              |       | $      | 114,960 | 
|                                                                                                                                         |                                        |                                            |       |                |         |              |       |       
|Liabilities                                                                                                                              |                                        |                                            |       |                |         |              |       |       
|Deposits                                                                                                                                 |                                        |                                            |       |                |         |              |       |       
|                                                                                                                                         | Demand Deposits                        |                                            | $     | 23,550         |         |              | $     | 18,444 |        
|                                                                                                                                         | NOW Accounts                           |                                            |       | 21,150         |         |              |       | 23,047 |        
|                                                                                                                                         | Money Market Accounts                  |                                            |       | 9,352          |         |              |       | 7,833  |        
|                                                                                                                                         | Savings Accounts                       |                                            |       | 20,282         |         |              |       | 14,358 |        
|                                                                                                                                         | Time Deposits, $100,000 and Over       |                                            |       | 9,797          |         |              |       | 10,778 |        
|                                                                                                                                         | Other Time Deposits                    |                                            |       | 26,244         |         |              |       | 27,294 |        
|                                                                                                                                         |                                        |                                            |       |                |         |              |       |       
|                                                                                                                                         |                                        | Total Deposits                             |       |                | 110,375 |              |       |        | 101,754 | 
|Securities Sold Under the Agreement to Repurchase                                                                                        |                                        |                                            | 330   |                |         |              | 222   |       
|Accounts Payable and Accrued Liabilities                                                                                                 |                                        |                                            | 1,176 |                |         |              | 672   |       
|Advances Under Line Of Credit                                                                                                            |                                        |                                            | 620   |                |         |              | 970   |       
|Notes Payable                                                                                                                            |                                        |                                            | 2,908 |                |         |              | 2,967 |       
|                                                                                                                                         |                                        |                                            |       |                |         |              |       |       
|                                                                                                                                         |                                        | Total Liabilities                          |       |                | 115,409 |              |       |        | 106,585 | 
|Stockholders Equity                                                                                                                     |                                        |                                            |       |                |         |              |       |       
|Common Stock, No Par Value, Authorized 1,000,000 Shares,
Issued and Outstanding 324,040 for September 2003 and
308,737 for December 2002 |                                        |                                            | 324   |                |         |              | 309   |       
|Capital Surplus                                                                                                                          |                                        |                                            | 3,005 |                |         |              | 2,625 |       
|Retained Earnings                                                                                                                        |                                        |                                            | 6,071 |                |         |              | 5,072 |       
|Accumulated Other comprehensive Income                                                                                                   |                                        |                                            | 231   |                |         |              | 369   |       
|                                                                                                                                         |                                        |                                            |       |                |         |              |       |       
|                                                                                                                                         |                                        | Total Stockholders Equity                 |       |                | 9,631   |              |       |        | 8,375   | 
|                                                                                                                                         |                                        |                                            |       |                |         |              |       |       
|                                                                                                                                         |                                        | Total Liabilities and Stockholders Equity |       | $              | 125,040 |              |       | $      | 114,960 | 
|                                                                                                                                         |                                        |                                            |       |                |         |              |       |       





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##### Table of Contents



Valrico Bancorp, Inc.
And Subsidiary




Consolidated Statements Of Income


|                           |                                        |                                                     |     |                     |       |      |     |         |       | 
|-------------------------- | -------------------------------------- | --------------------------------------------------- | --- | ------------------- | ----- | ---- | --- | ------- | ----- | 
|                           |                                        |                                                     |     | Three Months Ending
|                           |                                        |                                                     |     | September 30,      
|                           |                                        |                                                     |     |                    
|                           |                                        |                                                     |     | 2003                |       | 2002
|                           |                                        |                                                     |     |                     |       |     
|                           |                                        |                                                     |     | (in thousands)     
|Interest Income            |                                        |                                                     |     |                     |       |      |     |        
|                           | Interest and Fees on Loans             |                                                     | $   | 1,492               |       |      | $   | 1,326   |      
|                           | Interest on Investment Securities      |                                                     |     | 220                 |       |      |     | 279     |      
|                           | Income on Federal Funds Sold           |                                                     |     | 11                  |       |      |     | 47      |      
|                           |                                        |                                                     |     |                     |       |      |     |        
|                           |                                        | Total Interest Income                               |     |                     | 1,723 |      |     |         | 1,652 | 
|                           |                                        |                                                     |     |                     |       |      |     |        
|Interest Expense           |                                        |                                                     |     |                     |       |      |     |        
|                           | Interest on Deposits                   |                                                     |     | 322                 |       |      |     | 461     |      
|                           | Interest on Long Term Debt             |                                                     |     | 50                  |       |      |     | 58      |      
|                           |                                        |                                                     |     |                     |       |      |     |        
|                           |                                        | Total Interest Expense                              |     |                     | 372   |      |     |         | 519   | 
|                           |                                        |                                                     |     |                     |       |      |     |        
|                           |                                        | Net Interest Income                                 |     |                     | 1,351 |      |     |         | 1,133 | 
|Provision for Loan Losses  |                                        |                                                     | 30  |                     |       |      | 30  |        
|                           |                                        |                                                     |     |                     |       |      |     |        
|                           |                                        | Net Interest Income After Provision for Loan Losses |     |                     | 1,321 |      |     |         | 1,103 | 
|Other Income               |                                        |                                                     |     |                     |       |      |     |        
|                           | Service Charges on Deposit Accounts    |                                                     |     | 241                 |       |      |     | 235     |      
|                           | Miscellaneous Income                   |                                                     |     | 110                 |       |      |     | 140     |      
|                           |                                        |                                                     |     |                     |       |      |     |        
|                           |                                        | Total Other Income                                  |     |                     | 351   |      |     |         | 375   | 
|                           |                                        |                                                     |     |                     |       |      |     |        
|Other Expenses             |                                        |                                                     |     |                     |       |      |     |        
|                           | Salaries and Employee Benefits         |                                                     |     | 617                 |       |      |     | 545     |      
|                           | Occupancy Expense                      |                                                     |     | 107                 |       |      |     | 93      |      
|                           | Equipment Expense                      |                                                     |     | 64                  |       |      |     | 75      |      
|                           | Stationary, Printing and Supplies      |                                                     |     | 79                  |       |      |     | 41      |      
|                           | Miscellaneous Expenses                 |                                                     |     | 222                 |       |      |     | 303     |      
|                           |                                        |                                                     |     |                     |       |      |     |        
|                           |                                        | Total Other Expenses                                |     |                     | 1,089 |      |     |         | 1,057 | 
|                           |                                        |                                                     |     |                     |       |      |     |        
|Income Before Taxes        |                                        |                                                     | 583 |                     |       |      | 421 |        
|Income Taxes               |                                        |                                                     | 217 |                     |       |      | 146 |        
|                           |                                        |                                                     |     |                     |       |      |     |        
|Net Income                 |                                        | $                                                   | 366 |                     |       | $    | 275 |        
|Other Comprehensive Income |                                        |                                                     |     |                     |       |      |     |        
|                           | Unrealized Gains(Losses) on Securities |                                                     |     | (138                | )     |      |     | 203     |      
|                           |                                        |                                                     |     |                     |       |      |     |        
|Comprehensive Income       |                                        | $                                                   | 228 |                     |       | $    | 478 |        
|                           |                                        |                                                     |     |                     |       |      |     |        
|Per Share Data:            |                                        |                                                     |     |                     |       |      |     |        
|                           | Basic                                  |                                                     |     | 312,613             |       |      |     | 306,492 |      
|                           | Diluted                                |                                                     |     | 372,523             |       |      |     | 336,402 |      
|Earnings Per Share:        |                                        |                                                     |     |                     |       |      |     |        
|                           | Basic                                  |                                                     | $   | 1.17                |       |      | $   | 0.90    |      
|                           | Diluted                                |                                                     | $   | 0.98                |       |      | $   | 0.82    |      





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##### Table of Contents



Valrico Bancorp, Inc.
And Subsidiary




Consolidated Statements Of Income


|                           |                                        |                                                     |       |                    |       |      |     |         |       | 
|-------------------------- | -------------------------------------- | --------------------------------------------------- | ----- | ------------------ | ----- | ---- | --- | ------- | ----- | 
|                           |                                        |                                                     |       | Nine Months Ending
|                           |                                        |                                                     |       | September 30,     
|                           |                                        |                                                     |       |                   
|                           |                                        |                                                     |       | 2003               |       | 2002
|                           |                                        |                                                     |       |                    |       |     
|                           |                                        |                                                     |       | (in thousands)    
|Interest Income            |                                        |                                                     |       |                    |       |      |     |        
|                           | Interest and Fees on Loans             |                                                     | $     | 4,304              |       |      | $   | 4,056   |      
|                           | Interest on Investment Securities      |                                                     |       | 728                |       |      |     | 809     |      
|                           | Income on Federal Funds Sold           |                                                     |       | 44                 |       |      |     | 103     |      
|                           |                                        |                                                     |       |                    |       |      |     |        
|                           |                                        | Total Interest Income                               |       |                    | 5,076 |      |     |         | 4,968 | 
|                           |                                        |                                                     |       |                    |       |      |     |        
|Interest Expense           |                                        |                                                     |       |                    |       |      |     |        
|                           | Interest on Deposits                   |                                                     |       | 1,083              |       |      |     | 1,492   |      
|                           | Interest on Long Term Debt             |                                                     |       | 162                |       |      |     | 174     |      
|                           |                                        |                                                     |       |                    |       |      |     |        
|                           |                                        | Total Interest Expense                              |       |                    | 1,245 |      |     |         | 1,666 | 
|                           |                                        |                                                     |       |                    |       |      |     |        
|                           |                                        | Net Interest Income                                 |       |                    | 3,831 |      |     |         | 3,302 | 
|Provision for Loan Losses  |                                        |                                                     | 90    |                    |       |      | 90  |        
|                           |                                        |                                                     |       |                    |       |      |     |        
|                           |                                        | Net Interest Income After Provision for Loan Losses |       |                    | 3,741 |      |     |         | 3,212 | 
|Other Income               |                                        |                                                     |       |                    |       |      |     |        
|                           | Service Charges on Deposit Accounts    |                                                     |       | 688                |       |      |     | 693     |      
|                           | Miscellaneous Income                   |                                                     |       | 183                |       |      |     | 244     |      
|                           |                                        |                                                     |       |                    |       |      |     |        
|                           |                                        | Total Other Income                                  |       |                    | 871   |      |     |         | 937   | 
|                           |                                        |                                                     |       |                    |       |      |     |        
|Other Expenses             |                                        |                                                     |       |                    |       |      |     |        
|                           | Salaries and Employee Benefits         |                                                     |       | 1,771              |       |      |     | 1,635   |      
|                           | Occupancy Expense                      |                                                     |       | 276                |       |      |     | 458     |      
|                           | Equipment Expense                      |                                                     |       | 189                |       |      |     | 223     |      
|                           | Stationary, Printing and Supplies      |                                                     |       | 228                |       |      |     | 129     |      
|                           | Miscellaneous Expenses                 |                                                     |       | 572                |       |      |     | 788     |      
|                           |                                        |                                                     |       |                    |       |      |     |        
|                           |                                        | Total Other Expenses                                |       |                    | 3,036 |      |     |         | 3,233 | 
|                           |                                        |                                                     |       |                    |       |      |     |        
|Income Before Taxes        |                                        |                                                     | 1,576 |                    |       |      | 916 |        
|Income Taxes               |                                        |                                                     | 577   |                    |       |      | 321 |        
|                           |                                        |                                                     |       |                    |       |      |     |        
|Net Income                 |                                        | $                                                   | 999   |                    |       | $    | 595 |        
|Other Comprehensive Income |                                        |                                                     |       |                    |       |      |     |        
|                           | Unrealized Gains(Losses) on Securities |                                                     |       | (138               | )     |      |     | 332     |      
|                           |                                        |                                                     |       |                    |       |      |     |        
|Comprehensive Income       |                                        | $                                                   | 861   |                    |       | $    | 927 |        
|                           |                                        |                                                     |       |                    |       |      |     |        
|Per Share Data:            |                                        |                                                     |       |                    |       |      |     |        
|                           | Basic                                  |                                                     |       | 312,613            |       |      |     | 306,492 |      
|                           | Diluted                                |                                                     |       | 372,523            |       |      |     | 336,402 |      
|Earnings Per Share:        |                                        |                                                     |       |                    |       |      |     |        
|                           | Basic                                  |                                                     | $     | 3.20               |       |      | $   | 1.94    |      
|                           | Diluted                                |                                                     | $     | 2.68               |       |      | $   | 1.77    |      





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##### Table of Contents



VALRICO BANCORP, INC.
AND SUBSIDIARY




Consolidated Statements of
Changes in Stockholders' Equity


|                            |                                    |   |        |    |         |   |          |     |               |   |         |     |  |   |     |      |   |   |             |      |  
|--------------------------- | ---------------------------------- | - | ------ | -- | ------- | - | -------- | --- | ------------- | - | ------- | --- |  | - | --- | ---- | - | - | ----------- | ---- | -
|                            |                                    |   |        |    |         |   |          |     |               |   |         |     |  |   |     |      |   |   | Total Stock
|                            |                                    |   | Common |    | Capital |   | Retained |     | Comprehensive |   | Holders
|                            |                                    |   | Stock  |    | Surplus |   | Earnings |     | Income        |   | Equity 
|                            |                                    |   |        |    |         |   |          |     |               |   |        
|Balance, December 31, 2002  |                                    | $ | 309    |    |         | $ | 2,625    |     |               | $ | 5,072   |     |  | $ | 369 |      |   | $ | 8,375       |     
|                            | Net Income                         |   |        |   |         |   |          |    |               |   |         | 999 |  |   |     |     |   |   |             | 999  |  
|                            | Stock Sale                         |   |        | 15 |         |   |          | 380 |               |   |         |    |  |   |     |     |   |   |             | 395  |  
|                            | Net Change In Comprehensive Income |   |        |   |         |   |          |    |               |   |         |    |  |   |     | (138 | ) |   |             | (138 | )
|                            |                                    |   |        |    |         |   |          |     |               |   |         |     |  |   |     |      |   |   |             |     
|Balance, September 30, 2003 |                                    | $ | 324    |    |         | $ | 3,005    |     |               | $ | 6,071   |     |  | $ | 231 |      |   | $ | 9,631       |     
|                            |                                    |   |        |    |         |   |          |     |               |   |         |     |  |   |     |      |   |   |             |     
|Balance, December 31, 2001  |                                    | $ | 305    |    |         | $ | 2,526    |     |               | $ | 4,236   |     |  | $ | 67  |      |   | $ | 7,134       |     
|                            | Net Income                         |   |        |   |         |   |          |    |               |   |         | 595 |  |   |     |     |   |   |             | 595  |  
|                            | Stock Sale                         |   |        | 2  |         |   |          | 60  |               |   |         |    |  |   |     |     |   |   |             | 62   |  
|                            | Net Change In Comprehensive Income |   |        |   |         |   |          |    |               |   |         |    |  |   |     | 332  |   |   |             | 332  |  
|                            |                                    |   |        |    |         |   |          |     |               |   |         |     |  |   |     |      |   |   |             |     
|Balance, September 30, 2002 |                                    | $ | 307    |    |         | $ | 2,586    |     |               | $ | 4,831   |     |  | $ | 399 |      |   | $ | 8,123       |     
|                            |                                    |   |        |    |         |   |          |     |               |   |         |     |  |   |     |      |   |   |             |     





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##### Table of Contents



Valrico Bancorp, Inc.
And Subsidiary




Consolidated Statements Of Cash Flows


|                                                    |                                                                          |                                                   |                                          |        |                    |      |        |        |         |       |  
|--------------------------------------------------- | ------------------------------------------------------------------------ | ------------------------------------------------- | ---------------------------------------- | ------ | ------------------ | ---- | ------ | ------ | ------- | ----- | -
|                                                    |                                                                          |                                                   |                                          |        | Nine Months Ending
|                                                    |                                                                          |                                                   |                                          |        | September 30,     
|                                                    |                                                                          |                                                   |                                          |        |                   
|                                                    |                                                                          |                                                   |                                          |        | 2003               |      | 2002  
|                                                    |                                                                          |                                                   |                                          |        |                    |      |       
|                                                    |                                                                          |                                                   |                                          |        | (in thousands)    
|Cash Flows from Operating Activities                |                                                                          |                                                   |                                          |        |                    |      |        |       
|                                                    | Net Income                                                               |                                                   | $                                        | 999    |                    |      | $      | 595    |        
|                                                    | Adjustments to Reconcile net income to net                               |                                                   |                                          |        |                    |      |        |        |        
|                                                    | Cash provided by (used in) operating activities:                         |                                                   |                                          |        |                    |      |        |        |        
|                                                    |                                                                          | Provision for Loan Losses                         |                                          |        | 90                 |      |        |        | 90      |      
|                                                    |                                                                          | Depreciation and amortization                     |                                          |        | 132                |      |        |        | 303     |      
|                                                    |                                                                          | Net amortization (accretion) of investments       |                                          |        |                    |      |        |        |         |      
|                                                    |                                                                          |                                                   | Security premiums and discounts          |        |                    | 201  |        |        |         | (60   | )
|                                                    |                                                                          | (Increase) Decrease in assets:                    |                                          |        |                    |      |        |        |         |      
|                                                    |                                                                          |                                                   | Accrued Interest Receivable              |        |                    | (21  | )      |        |         | 97    |  
|                                                    |                                                                          |                                                   | Other Assets                             |        |                    | (532 | )      |        |         | 1,227 |  
|                                                    |                                                                          | Increase (Decrease) in liabilities:               |                                          |        |                    |      |        |        |         |      
|                                                    |                                                                          |                                                   | Accounts payable and Accrued Liabilities |        |                    | 504  |        |        |         | 439   |  
|                                                    |                                                                          |                                                   |                                          |        |                    |      |        |       
|Net Cash provided by (used in) operating Activities |                                                                          |                                                   | 1,373                                    |        |                    |      | 2,691  |       
|Cash flows from investing activities                |                                                                          |                                                   |                                          |        |                    |      |        |       
|                                                    | Securities available for sale:                                           |                                                   |                                          |        |                    |      |        |        |        
|                                                    |                                                                          | Purchase of investment securities                 |                                          |        | (17,697            | )    |        |        | (12,309 | )    
|                                                    |                                                                          | Proceeds from maturities of investment securities |                                          |        | 13,278             |      |        |        | 9,092   |      
|                                                    | Securities to be Held to Maturity:                                       |                                                   |                                          |        |                    |      |        |        |        
|                                                    |                                                                          | Proceeds from maturities of investment securities |                                          |        | 307                |      |        |        | 377     |      
|                                                    | (Increase) Decrease in Federal Funds Sold                                |                                                   |                                          | 249    |                    |      |        | (4,168 | )      
|                                                    | Net (Increase) Decrease in Loans                                         |                                                   |                                          | (8,128 | )                  |      |        | (2,743 | )      
|                                                    | Purchase of facilities                                                   |                                                   |                                          | (322   | )                  |      |        | (41    | )      
|                                                    | Proceeds from the sale of Other Real Estate                              |                                                   |                                          |       |                    |      |        |       |        
|                                                    |                                                                          |                                                   |                                          |        |                    |      |        |       
|Net Cash provided by (used in) Investing Activities |                                                                          |                                                   | (12,313                                  | )      |                    |      | (9,792 | )     
|Cash flows from financing activities:               |                                                                          |                                                   |                                          |        |                    |      |        |       
|                                                    | Increase (Decrease) in deposits                                          |                                                   |                                          | 8,621  |                    |      |        | 8,082  |        
|                                                    | Net increase (Decrease) in securities sold under
agreement to Repurchase |                                                   |                                          | 108    |                    |      |        | 66     |        
|                                                    | Net increase (Decrease)in notes payable                                  |                                                   |                                          | (409   | )                  |      |        | (54    | )      
|                                                    | Sale (redemption) of Common Stock                                        |                                                   |                                          | 395    |                    |      |        | 62     |        
|                                                    |                                                                          |                                                   |                                          |        |                    |      |        |       
|Net Cash Provided by (used by) financing activities |                                                                          |                                                   | 8,715                                    |        |                    |      | 8,156  |       
|                                                    |                                                                          |                                                   |                                          |        |                    |      |        |       
|                                                    | Net increase (decrease) in cash                                          |                                                   |                                          | (2,225 | )                  |      |        | 1,055  |        
|                                                    | Cash, beginning of period                                                |                                                   |                                          | 9,083  |                    |      |        | 6,417  |        
|                                                    |                                                                          |                                                   |                                          |        |                    |      |        |       
|Cash, ending of period                              |                                                                          | $                                                 | 6,858                                    |        |                    | $    | 7,472  |       
|                                                    |                                                                          |                                                   |                                          |        |                    |      |        |       





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##### Table of Contents



Valrico Bancorp, Inc.
And Subsidiary
Consolidated Statements Of Cash Flows (Cont)

|                                                  |              |  |                    |       |      |  |   |       | 
|------------------------------------------------- | ------------ |  | ------------------ | ----- | ---- |  | - | ----- | 
|                                                  |              |  | Nine Months Ended,
|                                                  |              |  | September 30,     
|                                                  |              |  |                   
|                                                  |              |  | 2003               |       | 2002
|                                                  |              |  |                    |       |     
|                                                  |              |  | (in thousands)    
|Supplemental Disclosures Of Cash Flow Information |              |  |                    |       |      |  |   |      
|Cash paid during the period for:                  |              |  |                    |       |      |  |   |      
|                                                  | Interest     |  | $                  | 1,296 |      |  | $ | 1,975 | 
|                                                  | Income taxes |  | $                  | 298   |      |  | $ | 199   | 





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Valrico Bancorp, Inc.
And Subsidiary Notes to




Consolidated Financial Statements


Basis Of Presentation

The accompanying unaudited consolidated financial statements have been prepared
in accordance with accounting principles generally accepted in the United
States of America. In the opinion of management, all necessary adjustments
(consisting of normal recurring entries) have been made for a fair presentation
of the accompanying unaudited consolidated financial statements. These
financial statements rely, in part, on estimates. The results for the period
are not necessarily indicative of the results to be expected for the entire
year.

Valrico Bancorp, Inc., a one-bank holding company, acquired 100% of the common
stock of Valrico State Bank as of May 31, 1995 in a transaction accounted for
similar to a pooling of interests. Therefore, the unaudited consolidated
financial statements include the accounts of Valrico Bancorp, Inc. (the
Company) and its wholly owned subsidiary, Valrico State Bank (the Bank).
Significant intercompany balances and transactions have been eliminated in
consolidation.

Basic net income per share has been computed by dividing net income by the
average number of common shares outstanding of 312,613 as of September 30,
2003, and 306,283 as of September 30, 2002. Diluted net income per share has
been computed by dividing net income by the average number of common shares and
common share equivalent outstanding of 372,523 as of September 30, 2003 and
366,193 as of September 30, 2002.





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Managements Discussion and Analysis of Financial Condition and Results of Operations

Results Of Operations

The Companys primary asset is its subsidiary bank, which is in its thirteenth
year of operation. During the nine months ended September 30, 2003, the Bank
experienced a growth in deposits with an increase of $8,621,000,000 or 8.5%.
Savings Accounts had the highest percentage of growth at 41.3%, or an increase
of $5,924,000 in the nine months ended September 30, 2003.

Loan growth increased $8,038,000 or 10.8% for the nine months ended September
30, 2003. The allowance for credit losses at September 30, 2003 was at
$1,153,000 compared to 1,015,000 at December 31, 2002. The Bank had $9,000 in
charge-offs and had recoveries in the amount of $57,000 during the nine months
ended September 30, 2003, and has loan classified as troubled in the amount of
$9,000 as of September 30, 2003. A total of $90,000 was expensed for provision
for loan losses during the period. Management considers the allowance to be
adequate at this time.

Nonaccrual loans amounted to $54,000 and $455,000 at September 30, 2003 and
2002, respectively. Loans 90 days or more past due amounted to $0 and $0 at
September 30, 2003 and 2002, respectively. There were restructured loans in
the amount of $16,000 and $600,000 at September 30, 2003 and 2002,
respectively. The table on the following page sets forth a summary of loan
loss experience:





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Managements Discussion and Analysis of Financial Condition and Results of Operations (Cont.)

Analysis of the Allowance for Loan Losses

|                                                                                          |                           |                        |       |                |    |      |       |    |    | 
|----------------------------------------------------------------------------------------- | ------------------------- | ---------------------- | ----- | -------------- | -- | ---- | ----- | -- | -- | 
|                                                                                          |                           |                        |       | September 31, 
|                                                                                          |                           |                        |       |               
|                                                                                          |                           |                        |       | 2003           |    | 2002
|                                                                                          |                           |                        |       |                |    |     
|                                                                                          |                           |                        |       | (in thousands)
|Beginning Reserves                                                                        |                           | $                      | 1,015 |                |    | $    | 978   |   
|                                                                                          | Charge offs:              |                        |       |                |    |      |       |    |   
|                                                                                          |                           | Commercial             |       |                | 1  |      |       |    | 4  | 
|                                                                                          |                           | Commercial Real Estate |       |                |   |      |       |    | 40 | 
|                                                                                          |                           | Consumer               |       |                | 8  |      |       |    | 26 | 
|                                                                                          |                           | Residential            |       |                |   |      |       |    |   | 
|                                                                                          |                           |                        |       |                |    |      |       |   
|                                                                                          | Total Charge Offs         |                        |       | 9              |    |      |       | 70 |   
|                                                                                          | Recoveries
Commercial     |                        |       | 41             |    |      |       |   |   
|                                                                                          |                           | Commercial Real Estate |       |                |   |      |       |    |   | 
|                                                                                          |                           | Consumer               |       |                | 16 |      |       |    | 6  | 
|                                                                                          |                           | Residential            |       |                |   |      |       |    |   | 
|                                                                                          |                           |                        |       |                |    |      |       |   
|                                                                                          | Total Recoveries          |                        |       | 57             |    |      |       | 6  |   
|                                                                                          |                           |                        |       |                |    |      |       |   
|                                                                                          | Net Charge offs           |                        |       | (48            | )  |      |       | 64 |   
|                                                                                          | Provision for Loan Losses |                        |       | 90             |    |      |       | 90 |   
|                                                                                          |                           |                        |       |                |    |      |       |   
|Ending Reserves                                                                           |                           | $                      | 1,153 |                |    | $    | 1,004 |   
|                                                                                          |                           |                        |       |                |    |      |       |   
|Ratio of Net Charge-offs during the period to average
loans outstanding during the period |                           |                        | -0.06 | %              |    |      | 0.09  | % 

Consolidated net income for the nine months ending September 30, 2003 was
$999,000 or $3.20 and $2.68 per share, basic and diluted respectively, which
compares to $595,000 or $1.94 and $1.62 per share, basic and diluted
respectively, for the same period in 2002. This represents an increase over
the comparable period of $404,000.

Salaries and benefits represent 58.3% of non-interest expenses for the nine
months ended September 30, 2003, compared to 50.6% for the nine months ended
September 30, 2002. Salary expense for the nine months ended September 30,
2003 increased 8.3% over the same period for 2002

The Tier I capital ratio was 7.54% and Total Capital ratio was 8.47% at
September 30, 2003. The tier I capital to total risk-weighted assets ratio was
9.94% and total risk based capital ratio was 10.94% at September 30, 2003.





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Disclosure Of Evaluation Of Disclosure Controls And Procedures

Controls and Procedures.
The Company carried out an evaluation, under the supervision and with the
participation of the Companys management, including the Companys Chief
Executive Officer and Chief Financial Officer, of the effectiveness of the
design and operation of the Companys disclosure controls and procedures as of
September 30, 2003, pursuant to Exchange Act Rule 13a-15. Based upon that
evaluation, the Chief Executive Officer and Chief Financial Officer concluded
that the Companys disclosure controls and procedures were effective as of
September 30, 2003, in timely alerting them to material information relating to
the Company (including its consolidated subsidiaries) required to be included
in the Companys periodic SEC filings.

There was no change in the Companys internal control over financial reporting
that occurred during the Companys fiscal quarter ended September 30, 2003,
that has materially affected, or is reasonably likely to materially affect, the
Companys internal control over financial reporting.





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Part II

Item 6. Exhibits and Reports on Form 8-K

All applicable exhibits required by item 601 of Regulation SB are furnished
herewith.

No reports on Form 8-K were filed during the quarter ended September 30, 2003.





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Signatures

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

|                     |  |                                                 
|-------------------- |  | ------------------------------------------------
|VALRICO BANCORP, INC |  |                                                 
|                     |  |                                                 
|November 10th 2003   |  | \s\ Bob Mclean                                  
|                     |  |                                                 
|                     |  | Bob Mclean
President and Chief Executive Officer
|                     |  |                                                 
|November 10th 2003   |  | \s\ Jerry L. Ball                               
|                     |  |                                                 
|                     |  | Jerry L. Ball
Executive Vice President