<PAGE>


                     U.S. Securities and Exchange Commission
                                Washington, D.C.

                                   Form 10-QSB


              [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

             [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
                                  EXCHANGE ACT

                          For the transition period to

                         Commission file number 0-27474
                                                -------

                            American Bancshares, Inc.
                            -------------------------
        (Exact name of small business issues as specified in its charter)


                 Florida                             65-0624640
                 -------                             ----------
        (State or other jurisdiction             (IRS Emloyer Id. No.)
        incorporation or organization

                 4702 Cortez Road West, Bradenton, Florida 34210
                 -----------------------------------------------

                                 (941) 795-3050
                                 --------------

              ----------------------------------------------------
              (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 Exchange Act during the past 12 months (or for 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 issuer's classes of common
equity, as of the last practicable date: 4040927 as of September 30, 1997
                                         --------------------------------
<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>

                                                                                     Page
<S>               <C>                                                                <C>
Part I            FINANCIAL INFORMATION

                  Item 1
                           -Financial Statements                                     1-4

                           -Notes to Consolidated Condensed Financial Statements     5-7

                  Item 2
                           -Management's Discussion and Analysis
                            of Financial Condition and Results of
                            Operations                                               8-9


Part II           OTHER INFORMATION

                  Item 1            Legal Proceedings                                10


                  Item 2            Changes in Securities                            10


                  Item 3            Defaults Upon Senior Securities
                                    (Not applicable this report)                     n/a

                  Item 4            Submission of Matters to a Vote
                                    of Security Holders                              10


                  Item 5            Other Information                                10-11


                  Item 6            Exhibits and Reports on Form 8-K                 11
</TABLE>
<PAGE>


PART 1 - FINANCIAL INFORMATION


ITEM 1.  FINANCIAL STATEMENTS

American Bancshares, Inc. and Subsidiaries
Consolidated Condensed Balance Sheets
($ in thousands)
<TABLE>
<CAPTION>
                                                                                 September 30,   December 31,
                                                                                     1997          1996         %           $
Assets                                                                            (unaudited)    (audited)    Change     Change
                                                                                   ---------     ---------    ------    ---------
<S>                                                                                <C>           <C>          <C>       <C>
  Cash and due from banks                                                          $   9,176     $   7,517     22.07        1,659
  Federal funds sold                                                                   6,324         6,000      5.40          324
  Interest bearing deposits in banks                                                   1,586         7,528    (78.93)      (5,942)
  Mortgage loans held for sale                                                        42,064        20,351    106.69       21,713
  Investment securities, available for sale                                           35,789        21,026     70.21       14,763
  Mortgage-backed securities, available for sale                                       4,684         5,085     (7.89)        (401)
  Loans (net of allowance for credit losses and
   deferred loan fees of $733,256 as of
   September 30, 1997 and $395,463 as of
   December 31, 1996)                                                                159,598       135,108     18.13       24,490
  Premises and equipment, net                                                          8,209         6,879     19.33        1,330
  Other real estate owned, net                                                            60             0    100.00           60
  Goodwill                                                                                81             0    100.00           81
  Other assets                                                                         2,621         2,471      6.07          150
                                                                                   ---------     ---------    ------    ---------
  Total assets                                                                     $ 270,192     $ 211,965     27.47       58,227
                                                                                   =========     =========    ======    =========

Liabilities and shareholders' equity

Liabilities
  Deposits                                                                         $ 226,097     $ 177,203     27.59       48,894
  Securities sold under agreements to repurchase                                      17,684        10,113     74.86        7,571
  Federal funds purchased and FHLB borrowings                                          5,000         5,000      0.00            0
  Other liabilities                                                                    1,009           835     20.84          174
                                                                                   ---------     ---------    ------    ---------
    Total liabilities                                                                249,790       193,151     29.32       56,639


Shareholders' equity
  Common stock, $1.175 par value, 10,000,000 shares authorized, 
   4,040,927 shares issued and outstanding as of September 30, 1997
   and 4,001,744 as of December 31, 1996                                               4,783         4,702      1.72           81
  Additional paid in capital                                                          12,033        11,736      2.53          297
  Unrealized gain (loss) on securities available for sale, net                            38           (80)  (147.50)         118
  Retained earnings                                                                    3,548         2,456     44.46        1,092
                                                                                   ---------     ---------    ------    ---------
    Total stockholders' equity                                                        20,402        18,814      8.44        1,588
                                                                                   ---------     ---------    ------    ---------
Total liabilities and shareholders' equity                                         $ 270,192     $ 211,965     27.47       58,227
                                                                                   =========     =========    ======    =========
</TABLE>

The accompanying notes are an integral part of these financial statements.

                                     Page 1
<PAGE>


 American Bancshares, Inc. and Subsidiaries
 Consolidated Condensed Statements of Income
 (unaudited, $ in thousands)
<TABLE>
<CAPTION>
                                                                    Three Months ended September 30,    %             $
                                                                          1997           1996         Change        Change
                                                                        --------       --------       ------        ------
<S>                                                                    <C>            <C>            <C>          <C>
Interest income
  Interest and fees on loans                                           $    4,354     $    3,242         34.30         1,112
  Interest on mortgage backed securities, taxable                              74            151        (50.99)          (77)
  Interest on investment securities, taxable                                  561            368         52.45           193
  Interest on investment securities, nontaxable                                 5              5          0.00             0
  Other interest income                                                        84             45         86.67            39
                                                                       ----------     ----------     ---------    ----------
    Total interest income                                                   5,078          3,811         33.25         1,267

Interest expense
  Deposits                                                                  2,469          1,898         30.08           571
  Securities sold under agreements to repurchase                              177             87        103.45            90
  Federal funds purchased and FHLB advances                                    80              5      1,500.00            75
                                                                       ----------     ----------     ---------    ----------
    Total interest expense                                                  2,726          1,990         36.98           736

Net interest income                                                         2,352          1,821         29.16           531
Provision for loan losses                                                     150            130         15.38            20
                                                                       ----------     ----------     ---------    ----------
Net interest income after loan loss                                         2,202          1,691         30.22           511

Noninterest income
  Service charges & fees                                                      378            197         91.88           181
  Gain on sale of mortgage loans                                               60             29        106.90            31
  Gain on sale of securities                                                   70             47         48.94            23
  Gain on sale of servicing                                                    75             23        226.09            52
  Broker loan fees                                                            108             12        800.00            96
  Merchant fees                                                               105             36        191.67            69
  Other income                                                                196            113         73.45            83
                                                                       ----------     ----------     ---------    ----------
    Total noninterest income                                                  992            457        117.07           535

Noninterest expense
  Salaries & employee benefits                                              1,115            812         37.32           303
  Net occupancy expense                                                       170            107         58.88            63
  Furniture and equipment expenses                                            168            111         51.35            57
  Data processing fees                                                        104            118        (11.86)          (14)
  Other expense                                                               910            613         48.45           297
                                                                       ----------     ----------     ---------    ----------
    Total noninterest expense                                               2,467          1,761         40.09           706

Income before income taxes                                                    727            387         87.86           340
Provision for income taxes                                                    292            129        126.36           163
                                                                       ----------     ----------     ---------    ----------
Net income                                                             $      435     $      258         68.60           177
                                                                       ==========     ==========     =========    ==========
Earnings per share (actual $'s)
Primary                                                                $     0.11     $     0.07
Fully diluted                                                                0.11           0.06

Average Number of shares outstanding
Primary                                                                 4,040,927      3,879,933
Fully diluted                                                           4,070,927      4,084,388
</TABLE>

The accompanying notes are an integral part of these financial statements.

                                     Page 2
<PAGE>
 American Bancshares, Inc. and Subsidiaries
 Consolidated Condensed Statements of Income
 (unaudited, $ in thousands)
<TABLE>
<CAPTION>
                                                                       Nine Month's Ended September 30,    %           $
                                                                             1997              1996      Change      Change
                                                                          ----------        ----------   -------   ----------
<S>                                                                       <C>               <C>          <C>       <C>
Interest income Interest and fees on loans                                $   11,960        $    8,960     33.48        3,000
  Interest on mortgage backed securities, taxable                                233               321    (27.41)         (88)
  Interest on investment securities, taxable                                   1,726               862    100.23          864
  Interest on investment securities, nontaxable                                   14                14      0.00            0
  Other interest income                                                          240               177     35.59           63
                                                                          ----------        ----------   -------   ----------
    Total interest income                                                     14,173            10,334     37.15        3,839

Interest expense
  Deposits                                                                     6,762             4,964     36.22        1,798
  Securities sold under agreements to repurchase                                 438               255     71.76          183
  Federal funds purchased and FHLB advances                                      269                44    511.36          225
                                                                          ----------        ----------   -------   ----------
    Total interest expense                                                     7,469             5,263     41.92        2,206

Net interest income                                                            6,704             5,071     32.20        1,633
Provision for loan losses                                                        615               207    197.10          408
                                                                          ----------        ----------   -------   ----------
Net interest income after loan loss                                            6,089             4,864     25.19        1,225

Noninterest income
  Service charges & fees                                                         925               517     78.92          408
  Gain on sale of loans                                                           90               164    (45.12)         (74)
  Gain on sale of securities                                                      73                60     21.67           13
  Gain on sale of servicing                                                      346                38    810.53          308
  Broker loan fees                                                               242                31    680.65          211
  Originated mortgage servicing rights                                            92               196    (53.06)        (104)
  Merchant fees                                                                  362               188     92.55          174
  Other income                                                                   384               222     72.97          162
                                                                          ----------        ----------   -------   ----------
    Total noninterest income                                                   2,514             1,416     77.54        1,098

Noninterest expense
  Salaries & employee benefits                                                 3,180             2,538     25.30          642
  Net occupancy expense                                                          466               279     67.03          187
  Furniture and equipment expenses                                               454               322     40.99          132
  Data processing fees                                                           286               416    (31.25)        (130)
  Other expense                                                                2,513             1,693     48.43          820
                                                                          ----------        ----------   -------   ----------
    Total noninterest expense                                                  6,899             5,248     31.46        1,651

Income before income taxes                                                     1,704             1,032     65.12          672
Provision for income taxes                                                       659               382     72.51          277
                                                                          ----------        ----------   -------   ----------
Net income                                                                $    1,045        $      650     60.77          395
                                                                          ==========        ==========   =======   ==========
Earnings per share (actual $'s)
Primary                                                                   $     0.26        $     0.18
Fully diluted                                                                   0.26              0.17

Average Number of shares outstanding
Primary                                                                    4,038,057         3,631,068
Fully diluted                                                              4,061,938         3,854,981
</TABLE>

The accompanying notes are an integral part of these financial statements.

                                     Page 3
<PAGE>
American Bancshares, Inc. and Subsidiaries
Consolidated Condensed Statement of Cashflows
(unaudited, $ in thousands)
<TABLE>
<CAPTION>
                                                                                                   Nine Month's Ended September 30,
                                                                                                           1997        1996
                                                                                                         --------    --------
<S>                                                                                                      <C>         <C>
Cash flows from operating activities:
     Net income                                                                                          $  1,045    $    650
                                                                                                         --------    --------
     Adjustments to reconcile net income to net cash provided by operating
       activities:
        Provision for loan losses                                                                             615         208
        Net gain on sale of investment securities                                                             (73)        (60)
        Net gain on sale of loans                                                                             (90)       (165)
        Net gain on sale of mortgage servicing rights                                                        (346)        (25)
        Net gain on originated mortgage servicing rights                                                      (92)       (207)
        Net gain on sale of assets                                                                              0           0
        Deferred income taxes                                                                                 (65)        381
        Depreciation                                                                                          466         291
        Net amortization of premiums and accretion of discounts on
           investment securities                                                                               13        (101)
        Increase in other liabilities                                                                         171         406
        Increase in other assets                                                                              146         119
                                                                                                         --------    --------
          Total adjustments                                                                                   745         847
                                                                                                         --------    --------
          Net cash provided by operating activities                                                         1,790       1,497
                                                                                                         --------    --------
Cash flows from investing activities:
     Loan originations, net of repayments                                                                 (70,485)    (54,976)
     Purchase of loans held for sale                                                                            0           0
     Proceeds from sales of loans held for sale                                                            23,823      22,576
     Purchases of bank premises and equipment                                                              (1,796)     (2,714)
     Proceeds on sales of assets                                                                                0           0
     Proceeds from maturities of held to maturity investment securities                                         0           0
     Proceeds from sales and maturities of available for sale investment
          securities                                                                                       13,957      16,460
     Purchases of held to maturity investment securities                                                        0           0
     Purchases of available for sale investment securities, net of repayments                             (28,141)    (24,214)
                                                                                                         --------    --------
          Net cash used in investing activities                                                           (62,642)    (42,868)
                                                                                                         --------    --------
Cash flows from financing activities:
     Net increase (decrease) in demand deposits, NOW and savings
          accounts                                                                                         27,393      20,384
     Net increase in time deposits                                                                         21,504      18,286
     Net increase (decrease) in securities sold under agreements to repurchase                              7,571      (1,679)
     Principal payments under capital lease obligations                                                         0           0
     Proceeds from advances from the FHLB and Federal Funds purchased                                           0           0
     Proceeds from sale of stock                                                                              425       8,220
                                                                                                         --------    --------
          Net cash provided by financing activities                                                        56,893      45,211
                                                                                                         --------    --------
     Net increase (decrease) in cash and cash equivalents                                                  (3,959)      4,042
     Cash and cash equivalents at beginning of period                                                      21,045       6,768

     Cash and cash equivalents at end of period                                                          $ 17,086    $ 10,810
                                                                                                         ========    ========
     Supplemental disclosures:
        Interest paid                                                                                    $  7,447    $  5,280
                                                                                                         ========    ========
        Income taxes paid                                                                                $    670    $    417
                                                                                                         ========    ========
</TABLE>
     The accompanying notes are an integral part of these financial statements 


                                     Page 4
<PAGE>
                  AMERICAN BANCSHARES, INC. AND SUBSIDIARIES
                  NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS


Note 1.           Holding Company and Subsidiaries Background Information

                  American  Bancshares,  Inc.  (Company),  is a one bank holding
                  company,  operated under the laws of the state of Florida. Its
                  wholly owned banking  subsidiary is American Bank of Bradenton
                  (Bank), a state chartered bank. The Holding Company, a Florida
                  corporation  organized June 30, 1995, is a registered  holding
                  company  under  the  Bank  Holding  Company  Act of  1956,  as
                  amended,  and on  December  1, 1995  became  the bank  holding
                  company for the Bank. The Bank was incorporated on December 6,
                  1988 and opened  for  business  on May 8, 1989.  The Bank is a
                  general  commercial  bank  with all the  rights,  powers,  and
                  privileges  granted and conferred by the Florida Banking Code.
                  Although  the Holding  Company  was not formed  until June 30,
                  1995 and did not acquire the Bank until  December 1, 1995, the
                  financial  statements  have been  presented  as if the Holding
                  Company  had been in  existence  since the Bank was  formed in
                  1988 and as if the Bank was its wholly owned  subsidiary since
                  that time.

                  The  Company  organized  "Freedom  Finance  Company"  (Finance
                  Company), a Florida Corporation,  as a non-banking  subsidiary
                  on June 11,1997.  The Finance  Company was  capitalized by the
                  Company on July 11,1997. The Finance Company is licensed under
                  the Florida Consumer Finance Act by the Florida  Department of
                  Banking and Finance. The purpose of Freedom Finance Company is
                  to make "consumer  finance  loans." A "consumer  finance loan"
                  means a loan of  money,  credit  or  goods  in the  amount  of
                  $25,000 or less for which the Lender  charges,  contracts for,
                  collects,  or receives interest at a rate greater than 18% per
                  annum.
 
                  On  September  23,1997 the Company  entered  into a definitive
                  merger agreement. Pursuant to the merger agreement the Company
                  will   acquire   Murdock   Florida   Bank   (Murdock)   on   a
                  stock-for-stock basis valued at $29.22 per share in a tax free
                  exchange.  Murdock  Florida  Bank is a community  bank serving
                  Murdock,   Florida  and  the  surrounding   area  of  northern
                  Charlotte county and southern Sarasota county. The acquisition
                  is  expected  to close in the  fourth  quarter  of 1997 or the
                  first  quarter of 1998 and to be accounted for as a pooling of
                  interests.   Based  upon  information   provided  by  Murdock,
                  management  believes the transaction will be accretive to 1998
                  earnings in excess of ten percent.  The merger  agreement  has
                  been  approved  by the boards of  directors  of both  American
                  Bancshares,  Inc. and Murdock  Florida  Bank.  The merger must
                  also be  approved by Murdock  shareholders  and by Federal and
                  State bank  regulatory  authorities  and is subject to various
                  customary closing conditions.

Note 2.           Basis of Presentation

                  The accompanying  unaudited condensed  consolidated  financial
                  statements,   in  the  opinion  of  management,   include  all
                  adjustments,  consisting only of normal recurring  adjustments
                  necessary  for a fair  presentation  of the  results  for  the
                  interim periods.  Certain information and footnote disclosures
                  normally   included  in  financial   statements   prepared  in
                  accordance with generally accepted accounting  principles have
                  been   condensed   or  omitted   pursuant  to  SEC  rules  and
                  regulations,   although   the   Company   believes   that  the
                  disclosures   included   herein  are   adequate  to  make  the
                  information   presented   not   misleading.   The  results  of
                  operations  for the  three  month  period  and the nine  month
                  period ended September 30, 1997 are not necessarily indicative
                  of the results expected for the full year.

                  The  organization  and  business  of the  Company,  accounting
                  policies  followed by the Company  and other  information  are
                  contained in the Company's  December 31, 1996 Form 10KSB. This
                  quarterly report should be read in conjunction with such
                  annual report.


                                     Page 5
<PAGE>
                  AMERICAN BANCSHARES, INC. AND SUBSIDIARIES
                  NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

Note 3.           Investments

                  The Company's  investment and  mortgage-backed  securities are
                  classified as available for sale and recorded at fair value as
                  required  by  the   provisions   of   Statement  of  Financial
                  Accounting  Standards number 115.  Unrealized gains and losses
                  are reflected as a separate component of shareholders'  equity
                  on the consolidated statement of
                  condition.  At  September  30,  1997,  an  unrealized  gain,
                  net of tax, of $38,000 was reflected as an increase of
                  shareholders' equity.

Note 4.           Earnings Per Share

                  Earnings  per share have been  computed by dividing net income
                  by the weighted  average number of shares  outstanding for the
                  respective  period(s).  The increase in the  weighted  average
                  number of shares is a result of the Company's  public offering
                  in February  1996.  Common  stock  equivalents  in the form of
                  stock  warrants and options have been  included to reflect the
                  dilution effect of such warrants and options.

Note 5.           Capital

                  In December 1995,  the Company filed a registration  statement
                  on Form SB-2 with the Securities and  Exchange  Commission  to
                  register for sale  1,250,000  shares of the  Company's  common
                  stock  (with  an  additional  187,500  shares  subject  to the
                  underwriters'  over  allotment  option)  at  $6.00  per  share
                  pursuant to a firm commitment  underwritten  public  offering.
                  The SB-2 became  effective  February 6, 1996, with the sale of
                  1,250,000  shares of common stock  consummated on February 13,
                  1996. On March 6, 1996,  the  underwriter  elected to exercise
                  the over allotment,  consummating the transaction on March 13,
                  1996. Of the net proceeds of approximately $7.5 million,  $4.9
                  million  has  been  contributed  as  capital  to the  Bank and
                  approximately $1,420,000 invested to date in land and building
                  in the construction of an administrative facility. The balance
                  will be used for  general  corporate  purposes  including  the
                  construction  of  a  new  administrative  facility,   possible
                  acquisitions  of other  financial  institutions,  and  working
                  capital.

Note 6.           Impact of Recently Issued Accounting Standards

                  Comprehensive  Income: In June, 1997 the Financial  Accounting
                  Standards  Board  issued  Statement  of  Financial  Accounting
                  Standards (SFAS) No. 130,  Reporting of Comprehensive  Income,
                  which  establishes  standards  for  reporting  and  display of
                  comprehensive income and its components  (revenues,  expenses,
                  gains and losses) in a full set of financial statements.  This
                  statement also requires that all items that are required to be
                  recognized  under   accounting   standards  as  components  of
                  comprehensive income be reported in a financial statement that
                  is  displayed  with the  same  prominence  as other  financial
                  statements.  This  statement is effective for the fiscal years
                  beginning  after  December  15,1997.  Earlier  application  is
                  permitted.   Reclassification  of  financial   statements  for
                  earlier periods provided for comparative purposes is required.
                  Management does not believe that adoption of SFAS No. 130 will
                  have a material impact on the company's financial statements.

                  Disclosures About Segments of an Enterprise: In June, 1997 the
                  Financial  Accounting  Standards  Board also issued (SFAS) No.
                  131,  Disclosures  about segments of an Enterprise and Related
                  Information,  which  establishes  standards  for  the  way the
                  public business enterprises report information about operating
                  segments in annual  financial  statements  and  requires  that
                  those enterprises report selected information about

                                     Page 6
<PAGE>
                  AMERICAN BANCSHARES, INC. AND SUBSIDIARIES
                  NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

Note 6.           Impact of Recently Issued Accounting Standards (continued)

                  operating  segments  in interim  financial  reports  issued to
                  shareholders.  This statement also  establishes  standards for
                  related  disclosures  about products and services,  geographic
                  areas,  and  major  customers.  This  statement  requires  the
                  reporting of financial and  descriptive  information  about an
                  enterprise's  reportable operating segments. This statement is
                  effective for financial statements for periods beginning after
                  December   15,1997.   In  the  initial  year  of  application,
                  comparative  information  for earlier years is to be restated.
                  The Company has not yet determined the impact adoption of SFAS
                  No. 131 will have on its financial statements.


                                     Page 7
<PAGE>
PART 1

ITEM 2.

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

Liquidity and Capital Resources

Total assets of the Company  increased by 27.5% to  $270,192,000 as of September
30, 1997, from $211,965,000 as of December 31, 1996 and 34% from $201,124,000 as
of  September  30,1996.  The  increase in assets from  December  31,  1996,  was
primarily  the result of  increases  in interest  earning  assets with net loans
increasing by $46,202,000 to $201,662,000 and investment  securities  increasing
by  $14,362,000.  Federal  funds sold  increased by $324,000 to $6,324,000 as of
September  30, 1997.  The increases in assets were funded  through  increases in
deposits at existing  locations and the addition of a new branch  location which
opened 6/16/97.

As a result of the public offering and subsequent  $4,900,000  investment in the
Bank by the Company,  the Bank's Tier 1 leverage ratio was 6.74%, Tier 1 to risk
weighted  assets  was  9.35% and  total  risk  based  capital  was  10.05% as of
September 30, 1997,  resulting in a classification of "Well  Capitalized"  under
FDIC guidelines.  The Bank,  through its  Asset/Liability  Committee,  monitors,
among  other  things,  the  Bank's  capital  and  liquidity   position,   making
adjustments to deposit,  loan, and investment strategies as necessary.  The Bank
continues  to maintain  adequate  liquidity  levels  with a  liquidity  ratio at
September 30, 1997 of 37.14%.  In addition,  the Bank is a member of the Federal
Home  Loan  Bank of  Atlanta  (FHLB).  FHLB has  approved  an  advance  totaling
$25,000,000  collateralized  by qualifying  mortgages and all of the Bank's FHLB
stock.  As of September  30, 1997,  an advance in the amount of  $5,000,000  was
outstanding.  The Bank also maintains  Federal Funds  Purchased  agreements with
several  correspondent  banks to  provide  sources  of  overnight  funds.  As of
September 30, 1997, the Bank had no federal funds purchased.

The Company is currently negotiating with Barnett Bank, N.A. South Florida for a
$5,000,000  Commercial Revolving Line of Credit (Credit Line). Proceeds from the
Credit  Line  will be used for  acquisition  of real  estate  to be used for the
development  of its  corporate  headquarters,  an  operations  center,  and bank
branches, which uses shall only be for legal and proper corporate purposes (duly
authorized by the Company's  Board of Directors)  which are consistent  with all
applicable  laws and  statutes.  The Credit  Line will be secured by 100% of the
shares of American Bank of Bradenton.  Settlement on the Credit Line is expected
to occur in the fourth quarter of 1997.

Results of Operations

The Company's  net income for the quarter ended  September 30, 1997 was $435,000
or $.11 per share,  compared to net income of $258,000 or $.07 per share for the
same period for 1996. Net interest income  increased  $531,000 to $2,352,000 for
the quarter  ended  September  30, 1997 as a result of the  increase in interest
earning assets.

Non-interest  income increased from $457,000 for the quarter ended September 30,
1996 to $992,000  for the same  period in 1997.  The  increase  in  non-interest
income is primarily  attributable  to increases in deposit  service  charges and
fees of $181,000 resulting from a larger deposit base and management's increased
diligence in collecting NSF fees (which  increased from $141,000 for the quarter
ended September  30,1996 to $278,000 for the quarter ended  September  30,1997);
broker loan fees of $96,000,  due to the acquisition of DesChamps and Gregory, a
local  mortgage  brokerage  firm, in January 1997 and an increase in credit card
merchant fee income of $69,000.

Total  noninterest  expense for the quarter ended September 30, 1997,  increased
$706,000 over the same period of 1996.  This increase  resulted  primarily  from
increases in other  operating  expenses  related to the growth in the  Company's
assets and number of Bank branches.  Specifically,  occupancy expense, furniture
and equipment  expenses and  professional  services  accounted for a substantial
portion of the increase for the quarter  ended  September 30, 1997. In addition,
salary and benefit costs  increased  $303,000 as a result of increased  staff in
lending,  operations, and accounting which were added to support the significant
growth  experienced  during 1996 and 1997.  Also, in January,  1997, the Company
acquired  Deschamps & Gregory,  a local mortgage  brokerage firm and hired staff

                                     Page 8
<PAGE>
Management's Discussion and Analysis of Financial Condition and
Results of Operations

Results of Operations (continued)

for the new Palmetto  branch office,  in March 1997,  that opened June 16, 1997.
Full time equivalent  employees  increased from 120 at September 30, 1996 to 144
as of September 30, 1997.

For the nine months ended  September 30, 1997, net income was $1,045,000 or $.26
per share,  compared  to net income of  $650,000  or $.18 per share for the same
period for 1996.  Earnings  per share were  affected  by the  additional  shares
outstanding as a result of the public  offering which was completed in the first
quarter of 1996. Interest income increased  $1,633,000 to $6,704,000 compared to
$5,071,000 for the same period in 1996 as a result of the 34% asset growth.  The
provision  for loan loss  expense  increased  from  $207,000  for the nine month
period  ended  September  30,  1996 to  $615,000  for the same  period  in 1997.
Management  uses a procedure on a monthly basis for  evaluating  the adequacy of
the  allowance  for loan loss.  Based on that review  management  considers  the
allowance sufficient to cover expected loan losses.

Noninterest income increased to $2.5 million for the nine months ended September
30,1997  from $1.4  million  for the same  period  for 1996.  Significant  items
include  increases  in  service  charges  and fees  from  $517,000  to  $925,000
($331,000  of the  increase  is  attributable  to NSF  fees),  gain  on  sale of
servicing from $38,000 to $346,000 primarily as a result of the sale of the FNMA
servicing portfolio outstanding at May 30,1997 and broker loan fees from $31,000
to $242,000 due to the  acquisition  of DesChamps and Gregory,  a local mortgage
brokerage firm, in January 1997.

Noninterest  expenses  increased  to $6.9  million  for the  nine  months  ended
September  30,1997 from $5.2 million for the same period for 1996.  Salaries and
employee  benefits  increased  $642,000 to $3.2 million from $2.5 million due to
increased staff size. Other significant expense increases were incidental to the
growth of the Bank.

                                     Page 9
<PAGE>
PART II - OTHER INFORMATION


Item 1.           Legal Proceedings


         On January 15, 1997, Theresa Moss, a former employee of the Bank, filed
a claim with the Equal Employment  Opportunity Commission ( EEOC ) alleging that
such employee was demoted by the Bank in retaliation for  complaining  against a
co-employee  for  offensive  comments  which caused a hostile  work  environment
leading  to her  resignation  from the Bank.  It is  alleged  that this  conduct
violated her rights  under Title VII of the Civil  Rights Act of 1964.  The EEOC
claim does not request any  specific  relief or  remedies  sought in  connection
therewith.  The company believes that the Bank acted appropriately and that this
action is without merit and it intends to defend this action vigorously.


         On March 27,1997, James J. Bazata, a former employee of the Bank, filed
an claim in the United States District Court, Tampa Division, alleging that such
employee was discriminated against. It is alleged that this conduct violated his
rights under the Americans with  Disabilities  Act of 1990. The company believes
that the Bank acted  appropriately  and that this  action is  without  merit and
intends to defend this action vigorously.

Item 2.           Changes in Securities

         Not applicable this filing.

Item 4.           Submission of Matters to a Vote of Security Holders

         Not applicable this filing.

Item 5.           Other Information

         1. On April  30,1997 John Weichel  resigned from the Board of Directors
of the Company.

         2. The Company  organized  "Freedon  Finance  Company" as a non-banking
subsidiary on June 11,1997.  To date Freedom  Finance  Company has not commenced
operations. A Balance Sheet delineating the disposition of the Company's initial
investment is presented below.

         Freedom Finance Company
         Balance Sheet
         As of July 11,1997
         (Unaudited, actual $)

         Assets

           Cash and due from banks                                     $    100
                                                                          -----
         Total Assets                                                       100
                                                                          =====

         Liabilities and shareholders' equity

           Liabilities                                                        0
                                                                          -----
           Shareholders' equity

             Common stock, $0.01 par value, 10,000 shares authorized,
               100 shares issued and outstanding as of July 11,1997           1
               Additional paid in capital                                    99
                                                                          -----
            Total shareholders' equity                                      100

         Total liabilities and shareholders' equity                     $   100
                                                                          =====

                                     Page 10
<PAGE>
PART II - OTHER INFORMATION


Item 5.           Other Information (continued)

         3.  On  September  24,1997  the  Company  announced  the  signing  of a
definitive merger agreement under which the Company will acquire Murdock Florida
Bank  (Murdock) on a  stock-for-stock  basis valued at $29.22 per share in a tax
free exchange. Murdock Florida Bank is a community bank serving Murdock, Florida
and the  surrounding  area of northern  Charlotte  county and southern  Sarasota
county.

         The purchase price is approximately  2.25 Murdock's book value and 18.8
times Murdock's June 30, 1997 earnings.  The acquisition is expected to close in
the fourth  quarter of 1997 and to be accounted  for as a pooling of  interests.
Based upon  information  provided by  Murdock,  American  Bancshares  management
believes  that the  transaction  will be accretive to 1998 earnings in excess of
ten percent.

         The exchange ratio of 2.40 shares of American Bancshares stock for each
share of Murdock was fixed at the signing of the  definitive  merger  agreement.
The  exchange  ratio will be  adjusted  if the  twenty day  average of the daily
closing price of the Company's common stock is below $11.00 per share at closing
so that the aggregate transaction value equals $11,250,000.  In addition Murdock
can terminate the  transaction  if the twenty day average falls below $10.00 per
share at closing.

         The merger  agreement  has been  approved by the boards of directors of
both American Bancshares, Inc. and Murdock Florida Bank. The merger must also be
approved  by  Murdock  shareholders  and by Federal  and State  bank  regulatory
authorities and is subject to various customary closing conditions.

Item 6.           Exhibits and Reports on Form 8-K

         Exhibits
          2.1  --Agreement  and Plan of Merger  dated  September  23,1997 by and
         among American Bancshares,  Inc., American Bank of Bradenton,  a wholly
         owned subsidiary of the Company, and Murdock Florida Bank, incorporated
         herein by  reference  to Exhibit  2.1 to the  Company's  Form 8K filing
         dated October 9, 1997 previously filed with the Commission.

          2.2 -- First  Amendment to Agreement  and Plan of Merger dated October
         8,1997  by and  among  American  Bancshares,  Inc.,  American  Bank  of
         Bradenton,  a wholly  owned  subsidiary  of the  Company,  and  Murdock
         Florida  Bank,  incorporated  herein by reference to Exhibit 2.2 to the
         Company's Form 8K filing dated October 9, 1997 previously filed with 
         the Commission.

         10 --See  Exhibits 2.1 and 2.2 for provisions of the Agreement and Plan
         of Merger and First Ammendment to the Agreement and Plan of Merger.

         27 --Financial Data Schedule (for SEC use only)

         Report on Form 8-K

                  --A report on Form 8k was filed on October  9,1997,  regarding
         the  Company's  Agreement  and Plan of Merger as ammended  with Murdock
         Florida Bank and American Bank of Bradenton,  a wholly owned subsidiary
         of the Company,  pursuant to which, among other things, Murdock Florida
         Bank will merge into American Bank of Bradenton.


                                    Page 11
<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.




                                               /s/      Gerald L. Anthony
                                               --------------------------------
                                               Gerald L. Anthony, President and
                                               Chief Executive Officer

                                               Date:    October 24, 1997



                                               /s/      Brian M. Watterson
                                               --------------------------------
                                               Brian M. Watterson
                                               Senior Vice President and
                                               Chief Financial Officer

                                               Date:    October 24, 1997
<PAGE>