UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                               -------------------

                                   FORM 10-QSB
                               ------------------

(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF
1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2005

[ ] TRANSITION  REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES  EXCHANGE ACT
OF 1934 FOR THE TRANSITION PERIOD FROM _____________ TO _____________.

Commission File Number 000-51155

                      Coastal Bancshares Acquisition Corp.
                        --------------------------------
        (Exact Name of Small Business Issuer as Specified in Its Charter)



        Delaware                                            20-1191778
(State or other Jurisdiction                             (I.R.S. Employer
    of incorporation)                                    Identification No.)

                          9821 Katy Freeway, Suite 500
                                 Houston, Texas
                     (Address of Principal Executive Office)

                                 (713) 827-2104
                (Issuer's Telephone Number, Including Area Code)

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 such shorter
period that the registrant was required to file such reports),  and (2) has been
subject to such filing requirements for the past 90 days. Yes [X] No [ ]

As of June 30, 2005, 6,520,000 shares of common stock, par value $.01 per share,
were issued and outstanding.

Transitional Small Business Disclosure Format (check one):
Yes [  ] No [X]

<PAGE>
                                 Index                                 Page No.
                                 -----                                 --------
Part I: Condensed Financial Information

        Item 1-Financial Statements                                           3

               Condensed Balance Sheets                                       3
               Condensed Statements of Operations                             4
               Condensed Statements of Cash Flows                             5
               Notes to Condensed Financial Statements                        6

        Item 2-Management's Discussion and Analysis or Plan of Operation     10

        Item 3-Controls and Procedures                                       11

Part II. Other Information

         Item 2-Changes in Securities and Small Business Issuer
         Purchases of Equity Securities                                      11

         Item 5-Other Information                                            12

         Item 6-Exhibits and Reports on Form 8-K                             12

Signatures                                                                   14
Exhibit Index                                                                15









                                       2
<PAGE>
PART I.  CONDENSED FINANCIAL INFORMATION

Item 1.  Condensed Financial Statements

<TABLE>
<CAPTION>

                                          COASTAL BANCSHARES ACQUISITION CORP.
                                        (A Corporation in the Development Stage)
                                                CONDENSED BALANCE SHEETS

                                                                                     June 30, 2005
ASSETS                                                                                 (Unaudited)            December 31, 2004
                                                                                  ----------------------     ---------------------
<S>                                                                               <C>                        <C>
Current assets:
Cash............................................................................  $         1,015,656        $           21,711
Treasury securities held in trust, at market ...................................           28,773,056                        --
Prepaid expenses................................................................               82,880                        --
                                                                                  ----------------------     ---------------------
     Total current assets.......................................................           29,871,592                    21,711
Deferred offering costs.........................................................                   --                    63,532
                                                                                  ----------------------     ---------------------
Total Assets....................................................................  $        29,871,592        $           85,243
                                                                                  ======================     =====================

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
     Accounts payable and accrued expenses......................................  $            27,500        $            7,697
     Income taxes payable.......................................................               43,385                        --
     Note payable, stockholder..................................................                   --                    55,000
                                                                                  ----------------------     ---------------------
Total Liabilities...............................................................               70,885                    62,697
                                                                                  ----------------------     ---------------------

Stockholders' Equity:
Preferred stock, $0.01 par value
     Authorized 5,000,000 shares; none issued...................................  $                 -        $                -
Common stock, $0.01 par value
     Authorized 50,000,000 shares
     Issued and outstanding, 6,520,000 and 1,000,000 shares, respectively.......               65,200                    10,000
Additional paid-in capital......................................................           29,852,745                    15,000
Deferred compensation...........................................................            (165,434)                        --
Earnings (Deficit) accumulated during the development stage.....................               48,196                   (2,454)
                                                                                  ----------------------     ---------------------
Total Stockholders' Equity......................................................           29,800,707                    22,546
                                                                                  ----------------------     ---------------------
Total Liabilities and Stockholders' Equity......................................  $        29,871,592        $           85,243
                                                                                  ======================     =====================

                               See accompanying notes to condensed financial statements.
</TABLE>
                                                           3

<PAGE>

<TABLE>
<CAPTION>
                                          COASTAL BANCSHARES ACQUISITION CORP.
                                        (A Corporation in the Development Stage)
                                           CONDENSED STATEMENTS OF OPERATIONS


                                                                                                          Period from May 19
                                                       Three months ended       Six  months ended           (inception) to
                                                         June 30, 2005            June 30, 2005              June 30, 2005
                                                          (Unaudited)              (Unaudited)                 (Unaudted)
                                                      ----------------------   ----------------------     --------------------
<S>                                                   <C>                      <C>                        <C>
Formation and operating costs..................       $            135,867     $           203,801        $          206,255
                                                      ----------------------   ----------------------     --------------------

Operating loss.................................                   (135,867)               (203,801)                 (206,255)
                                                      ----------------------   ----------------------     --------------------
Interest income:
  Received and accrued.........................                      5,457                   7,980                     7,980
  Market value adjustment......................                    211,364                 289,856                   289,856
                                                      ----------------------   ----------------------     --------------------
    Total interest income......................                    216,821                 297,836                   297,836
                                                      ----------------------   ----------------------     --------------------

Pre-tax income.................................                     80,954                  94,035                    91,581
  Provision for income taxes...................                     39,785                  43,385                    43,385
                                                      ----------------------   ----------------------     --------------------

Net income.....................................       $             41,169      $           50,650        $           48,196
                                                      ======================   ======================     ====================

Weighted Average Shares Outstanding............                  6,520,000               5,056,133                 2,609,730
                                                      ======================   ======================    ======================

Net income Per Share (Basic and Diluted).......       $               0.01     $              0.01        $             0.02
                                                      ======================   ======================     ====================






                               See accompanying notes to condensed financial statements.
                                                           4
</TABLE>


<PAGE>

<TABLE>
<CAPTION>

                                          COASTAL BANCSHARES ACQUISITION CORP.
                                        (A Corporation in the Development Stage)
                                           CONDENSED STATEMENTS OF CASH FLOWS

                                                                                                        Period from May 19
                                                                                Six months ended          (inception) to
                                                                                  June 30, 2005           June 30, 2005
                                                                                   (Unaudited)              (Unaudited)
                                                                                -------------------     -------------------
<S>                                                                             <C>                     <C>
CASH FLOW FROM OPERATING ACTIVITIES
  Net income..............................................................      $          50,650       $          48,196
Adjustments  to  reconcile  net  income  to net cash  provided
by (used in) operating activities:
  Increase in market value of treasury bill...............................               (289,856)               (289,856)
  Amortization of deferred compensation...................................                 33,566                  33,566
  Changes in operating assets and liabilities:
     Decrease (Increase) in prepaid expenses..............................                (82,880)                (82,880)
     Increase  (Decrease)  in  accounts  payable  and accrued expenses....                 19,803                  27,500
     Increase in income taxes payable.....................................                 43,385                  43,385
                                                                                -------------------     -------------------
Net cash used in operating activities.....................................               (225,332)               (220,089)
                                                                                -------------------     -------------------

CASH FLOW FROM INVESTING ACTIVITIES
  Purchase of treasury bill in trust account..............................            (28,483,200)            (28,483,200)
                                                                                -------------------     -------------------
Net cash used in investing activities.....................................            (28,483,200)            (28,483,200)
                                                                                -------------------     -------------------

CASH FLOW FROM FINANCING ACTIVITIES
  Proceeds from sale of common stock......................................                     --                  25,000
  Gross proceeds from public offering.....................................             33,120,000              33,120,000
  Costs of public offering................................................             (3,362,523)             (3,426,055)
  Proceeds from stockholder loan..........................................                 20,000                  75,000
  Repayment of  stockholder loan..........................................                (75,000)                (75,000)
  Deferred costs of the proposed public offering..........................                    --                       --
                                                                                -------------------     -------------------
Net cash provided by financing activities.................................             29,702,477              29,718,945
                                                                                -------------------     -------------------

NET INCREASE (DECREASE)  IN CASH..........................................                993,945               1,015,656
CASH AT BEGINNING OF PERIOD...............................................                 21,711                      --
                                                                                -------------------     -------------------
CASH AT END OF PERIOD.....................................................      $       1,015,656       $       1,015,656
                                                                                -------------------     -------------------




                               See accompanying notes to condensed financial statements.
                                                           5
</TABLE>



<PAGE>

                      COASTAL BANCSHARES ACQUISITION CORP.
                    (A Corporation in the Development Stage)
                     NOTES TO CONDENSED FINANCIAL STATEMENTS



1.   BASIS OF PRESENTATION

     The financial  statements  included  herein for the quarterly  period ended
June 30,  2005,  the six month  period  ended June 30, 2005 and the period since
inception  (May 19,  2004) ended June 30,  2005,  have been  prepared by Coastal
Bancshares Acquisition Corp. (the "Company") without audit pursuant to the rules
and regulations of the United States Securities and Exchange Commission ("SEC").
Accordingly, these statements reflect all adjustments (consisting only of normal
recurring  entries),  which are, in the opinion of the Company,  necessary for a
fair  presentation  of the financial  results for the interim  periods.  Certain
information  and notes  normally  included in financial  statements  prepared in
accordance with accounting principles generally accepted in the United States of
America have been condensed or omitted  pursuant to such rules and  regulations,
although  the Company  believes  that the  disclosures  are adequate to make the
information presented not misleading.  Operating results for the interim periods
presented are not necessarily indicative of the results that may be expected for
the full fiscal year. These financial  statements  should be read in conjunction
with the financial  statements that were included in the Company's Annual Report
on Form  10-KSB for the period  ended  December  31,  2004.  The  Company had no
operating  activity for the period from inception on May 19, 2004 through August
5, 2004.

2.   ORGANIZATION, BUSINESS OPERATIONS

     Coastal  Bancshares  Acquisition  Corp. (the "Company") was incorporated in
Delaware on May 19, 2004 as a blank check company whose  objective is to acquire
or  merge  with  an  operating  commercial  bank or bank  holding  company.  The
Company's  initial  stockholders'  purchased  1,000,000  shares of common stock,
$0.01 par value, for $25,000 on August 6, 2004.

     The registration for the Company's initial public offering (the "Offering")
of  4,800,000  units was declared  effective  on February 14, 2005.  The Company
consummated the Offering on February 18, 2005. The  underwriters  also exercised
their over-allotment  option to purchase an additional 720,000 units on February
18, 2005. The Company received proceeds,  net of the underwriters'  discount and
offering expenses of approximately $29.7 million.  The Company's  management has
broad discretion with respect to the specific application of the net proceeds of
the Offering, although substantially all of the net proceeds of the Offering are
intended  to  be  generally  applied  toward   consummating  a  merger  with  or
acquisition of an operating  commercial bank or bank holding company  ("Business
Combination").  There  is  no  assurance  that  the  Company  will  be  able  to
successfully affect a Business Combination. The amount of $28,483,200 was placed
in an interest  bearing trust account  ("Trust Fund") upon  consummation  of the
Offering  to be held  until the  earlier  of (i) the  consummation  of its first
Business  Combination or (ii)  liquidation  of the Company.  Under the agreement
governing the Trust Fund, funds may only be invested in United States government

                                       6
<PAGE>

securities  with a maturity of 180 days or less.  The remaining  proceeds may be
used to pay for business,  legal and  accounting  due  diligence on  prospective
mergers or acquisitions and continuing general and administrative expenses.

     The Company,  after  signing a definitive  agreement for the merger with or
acquisition of a target  business,  will submit such transaction for stockholder
approval.  In the event that stockholders' owning 20% or more of the outstanding
stock  excluding,   for  this  purpose,  those  persons  who  were  stockholders
immediately prior to the Offering,  vote against the Business  Combination,  the
Business Combination will not be consummated.  All of the Company's stockholders
prior to the  Offering,  including  all of the  officers  and  directors  of the
Company ("Initial  Stockholders"),  have agreed to vote their founding shares of
common  stock in  accordance  with the vote of the  majority  in interest of all
other  stockholders  of the Company  ("Public  Stockholders")  with respect to a
Business Combination. The business combination will not be completed unless more
than 50% of the  Public  Stockholders  vote in favor of the  transaction.  After
consummation  of  the  Company's  first  Business   Combination,   these  voting
safeguards no longer apply.

     With  respect  to the first  Business  Combination  which is  approved  and
consummated,  any Public Stockholder who voted against the Business  Combination
may demand that the Company redeem his or her shares.  The per share  redemption
price  will  equal  the  amount  in the  Trust  Fund as of the  record  date for
determination  of  stockholders  entitled  to vote on the  Business  Combination
divided by the number of shares of common stock held by Public  Stockholders  at
the  consummation  of the Offering.  Accordingly,  Public  Stockholders  holding
19.99% of the aggregate  number of shares owned by all Public  Stockholders  may
seek  redemption  of their shares in the event of a Business  Combination.  Such
Public  Stockholders  are  entitled to receive  their per share  interest in the
Trust Fund computed without regard to the shares held by Initial Stockholders.

     The  Company's  Certificate  of  Incorporation  provides for the  mandatory
liquidation of the Company,  without stockholder approval, in the event that the
Company  does not  consummate a Business  Combination  within 18 months from the
date of the consummation of the Offering,  or 24 months from the consummation of
the Offering if certain extension criteria have been satisfied.  In the event of
liquidation,  it is  likely  that the per  share  value of the  residual  assets
remaining available for distribution  (including Trust Fund assets) will be less
than the initial public  offering  price per share in the Offering  (assuming no
value is attributed to the Warrants  contained in the Units to be offered in the
Offering as described in Note 3).

3.   PUBLIC OFFERING

     On February  18,  2005,  the Company sold  4,800,000  units  ("Units") in a
public offering,  which included  granting the  underwriters' an  over-allotment
option to purchase up to an additional  720,000 Units. On February 18, 2005, the
underwriters  exercised the entire  amount of the option.  Each Unit consists of
one share of the Company's  common stock,  $0.01 par value,  and two  Redeemable
Common  Stock  Purchase  Warrants  ("Warrants").  Each  Warrant will entitle the
holder to purchase  from the  Company  one share of common  stock at an exercise
price  of  $5.00  commencing  on the  later  of  the  completion  of a  Business
Combination or February 13, 2006,  and expiring  February 13, 2010. The Warrants

                                       7
<PAGE>

will be  redeemable by the Company at a price of $0.01 per Warrant upon 30 days'
notice after the Warrants  become  exercisable,  only in the event that the last
sale  price of the common  stock is at least  $8.50 per share for any 20 trading
days within a 30 trading day period ending on the third day prior to the date on
which notice of the redemption is given.  In connection  with the Offering,  the
Company issued an option for $100 to the underwriters' to purchase 325,000 Units
at an exercise price of $7.50 per Unit. The Units issuable upon exercise of this
option are identical to those included in the Offering  except that the exercise
price of the Warrants included in the units will be $6.65 per share.

4.   TREASURY SECURITIES

     Treasury securities are classified as trading securities and are carried at
fair value, with gains or losses resulting from changes in fair value recognized
currently in earnings.

5.   DEFERRED COMPENSATION

     On April 7, 2005,  the  Company  made a  restricted  stock  grant of 40,000
shares to a director. The shares are subject to forfeiture in the event that the
Company  does not  consummate a Business  Combination  within 18 months from the
date of the consummation of the Offering,  or 24 months from the consummation of
the Offering if certain  extension  criteria have been satisfied.  The grant was
recorded based on the closing price of the Company's common stock on the date of
the grant and is being  amortized as  compensation  expense over the period from
the date of the grant through the date that is 18 months after  consummation  of
the Offering.

6.   COMMITMENT

     The Company presently  occupies office space provided by an affiliate of an
Initial Stockholder.  Such affiliate has agreed that, until the acquisition of a
target  business  by the  Company,  it will make such office  space,  as well as
certain office and  secretarial  services,  available to the Company,  as may be
required  by the Company  from time to time.  The Company has agreed to pay such
affiliate $7,500 per month for such services commencing on the effective date of
the Offering.

7.   NOTE PAYABLE

     Coastal  Acquisition,  LLC, a stockholder  and an affiliate of our co-chief
executive  officers,  Mr. Grossman and Mr. Brunson,  entered into a non-interest
bearing  revolving  credit  agreement with the Company in the amount of $75,000.
The loan, which at the time of the Offering had a balance of $75,000, was repaid
on February 18, 2005 out of the net proceeds of the Offering.



                                       8
<PAGE>


8.   COMMON STOCK

     At June 30,  2005,  50,000,000  shares of $0.01 par value common stock were
authorized and 6,520,000 shares were outstanding.

9.   PREFERRED STOCK

     The Company is authorized to issue 5,000,000 shares of preferred stock with
such designations,  voting and other rights and preferences as may be determined
from time to time by the Board of Director.






















                                       9
<PAGE>



Item 2.  Management's Discussion and Analysis or Plan of Operation

     The following  discussion  should be read in conjunction with the financial
statements and footnotes thereto incorporated by reference in this report.

Forward Looking Statements

Certain  statements  contained  in this interim  report that are not  historical
facts,  including,  but not limited to, statements that can be identified by the
use of  forward-looking  terminology  such  as  "may,"  "expect,"  "anticipate,"
"predict,"  "believe,"  "plan," "estimate" or "continue" or the negative thereof
or other  variations  thereon or  comparable  terminology,  are  forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995, and involve a number of risks and uncertainties. The actual results of the
future  events  described  in such  forward-looking  statements  in this interim
report  could  differ  materially  from  those  stated  in such  forward-looking
statements  due to various  factors,  including  but not limited to, our being a
development  stage  company with no operating  history,  our  dependence  on key
personnel  some of whom  may  join us  following  a  business  combination,  our
personnel  allocating  their time to other  businesses  and  potentially  having
conflicts of interest with our business,  our potentially being unable to obtain
additional  financing to complete a business  combination,  the ownership of our
securities  being  concentrated,  risks associated with the banking industry and
those other risks and  uncertainties  detailed in the Company's filings with the
Securities and Exchange Commission, including our Registration Statement on Form
S-1 that was declared effective February 14, 2005 and the definitive  Prospectus
thereunder,  our annual  report on Form  10-KSB  filed with the  Securities  and
Exchange Commission on March 31, 2005, and the uncertainties set forth from time
to time in the Company's filings and other public statements.

Plan of Operation

     We were formed on May 19,  2004,  to serve as a vehicle to effect a merger,
capital stock exchange,  asset acquisition or other similar business combination
with an operating  commercial bank or bank holding company. We intend to utilize
cash derived from the proceeds of this offering,  our capital  stock,  debt or a
combination   of  cash,   capital  stock  and  debt,  in  effecting  a  business
combination. We consummated the Offering on February 18, 2005. Our activities to
date have been comprised solely of organizational activities,  preparing for and
consummating the Offering,  and efforts associated with identifying a target for
a business combination.

     The net proceeds from the Offering and the capital contributed by our
initial  stockholders  amounted to approximately  $29.7 million.  As of June 30,
2005, we had cash of  $1,015,656,  and treasury  securities in our trust account
(at cost) of $28,483,200; a total of $29,498,856 million. The difference between
the sum of our initial capital plus the net proceeds of the Offering  reduced by
our cash and amount we placed in trust is approximately  $220,089,  which is the
amount of cash we have used since  inception.  We used  $126,500  to pay for our
Directors & Officers  liability  insurance  policy  which was  $115,000,  and to
prepay for one year of certain  other  expenses.  The  balance of  approximately
$93,589 was used to pay  general  and  administrative  expenses,  including  the
monthly overhead fee to Coastal Acquisition, LLC and professional fees.

                                       10
<PAGE>

     For the three  months  ended June 30, 2005,  we earned  interest  income of
$5,457 and  recorded  income from the  increase in the market value of our trust
account of $211,364.  We incurred operating  expenses of $135,867.  Our expenses
consisted primarily of professional fees, overhead fees, amortization of prepaid
insurance,  financial advisory fees, and certain other expenses  associated with
being a public  company.  We recorded  an income tax  provision  of $39,784.  We
established  a reserve  against  deferred tax assets from our 2004 net operating
loss carry-forward and our deferred  compensation expense due to the uncertainty
about our ability to generate future income before taxes.

     For the six months ended June 30, 2005, we earned interest income of $7,980
and recorded  income from the increase in the market value of our trust  account
of $289,856. We incurred operating expenses of $203,801.  Our expenses consisted
primarily  of  professional  fees,   overhead  fees,   amortization  of  prepaid
insurance,  financial advisory fees, and certain other expenses  associated with
being a public  company.  We recorded  an income tax  provision  of $43,385.  We
established  a reserve  against  deferred tax assets from our 2004 net operating
loss carry-forward and our deferred  compensation expense due to the uncertainty
about our ability to generate future income before taxes.

     Over the 24-month period subsequent to the consummation of the Offering, we
anticipate  spending  approximately  $180,000  for  general  and  administrative
services  which will be paid to Coastal  Acquisition,  LLC, an  affiliate of our
co-chief  executive  officers,  $350,000  of  expenses  for  legal,  accounting,
financial   advisory  and  other   expenses   attendant  to  the  due  diligence
investigations,  structuring and negotiating of a business combination,  $75,000
of  expenses  in  legal  and  accounting  fees  relating  to our  SEC  reporting
obligations  and  $587,400  for general  working  capital  that will be used for
miscellaneous  expenses  and  reserves,  including  approximately  $230,000  for
director and officer  liability  insurance  premiums.  We do not believe we will
need to raise additional  funds in order to meet the  expenditures  required for
operating our business. However, we may need to raise additional funds through a
private  offering  of debt or equity  securities  if such funds are  required to
consummate  a  business  combination  that is  presented  to us.  We would  only
consummate  such  a fund  raising  simultaneously  with  the  consummation  of a
business combination.

     We  are  obligated,  commencing  February  14,  2005,  to  pay  to  Coastal
Acquisition,  LLC, an affiliate  of our  directors  and  executive  officers,  a
monthly  fee  of  $7,500  for  general  and  administrative  services.   Coastal
Acquisition,  LLC also  entered into a  non-interest  bearing  revolving  credit
agreement with the Company in the amount of $75,000 in May 2004. The loan, which
at the time of the consummation of our Offering,  had a balance of $75,000,  was
repaid on February 18, 2005 out of the net proceeds of the Offering.

Item 3.  Controls and Procedures

     An  evaluation  of  the  effectiveness  of  our  disclosure   controls  and
procedures  as of June 30,  2005 was made  under  the  supervision  and with the
participation of our management,  including our co-chief  executive officers and
our principal financial officer.  Based on that evaluation,  they concluded that

                                       11
<PAGE>

our disclosure controls and procedures are effective as of the end of the period
covered by this report to ensure that information required to be disclosed by us
in reports that we file or submit under the  Securities  Exchange Act of 1934 is
recorded,  processed,  summarized and reported within the time periods specified
in Securities and Exchange  Commission rules and forms. During the most recently
completed fiscal quarter,  there has been no significant  change in our internal
control over financial reporting that has materially affected,  or is reasonably
likely to materially affect, our internal control over financial reporting.

PART II.  OTHER INFORMATION

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds.

     (a) Unregistered Sales of Equity Securities by Small Business Issuer.

         None.

     (b) Use of Proceeds.

         On February 18, 2005, we closed the Offering of 4,800,000  units,  with
each unit consisting of one share of our common stock and two warrants,  each to
purchase one share of our common stock at an exercise  price of $5.00 per share.
The units were sold at an  offering  price of $6.00 per unit,  generating  gross
proceeds of  $28,800,000.  Additionally,  the  underwriters'  purchased  720,000
units,  pursuant  to  the  exercise  of the  over-allotment  option  granted  in
connection  with the Offering,  generating  gross  proceeds of  $4,320,000.  The
representatives  of the  underwriters in the Offering were I-Bankers  Securities
Incorporated and Newbridge  Securities  Corporation.  The securities sold in the
Offering were  registered  under the  Securities  Act pursuant to a registration
statement on Form S-1 (No.  333-118294).  The Securities and Exchange Commission
declared the registration statement effective on February 14, 2005.

         We  paid  a  total  of   $3,081,600  in   underwriting   discounts  and
commissions,  including $432,000 for the underwriters'  non-accountable  expense
allowance,  and  incurred  approximately  $344,500  for other costs and expenses
related to the Offering.

         After  deducting the  underwriting  discounts and  commissions  and the
Offering  expenses,  the  total  net  proceeds  to us  from  the  Offering  were
approximately $29,644,000,  of which $28,483,200 was deposited into a trust fund
and the  remaining  proceeds are  available to be used to provide for  business,
legal and  accounting  due diligence on prospective  business  combinations  and
continuing general and administrative expenses.

     (c) Purchases of Equity Securities by Small Business Issuer.

         None.

Item 6:  Exhibits and Reports on Form 8-K

     (a) Exhibits:

         31.1  Section 302 Certification by Co-CEO


                                       12
<PAGE>

         31.2  Section 302 Certification by Co-CEO

         32.1  Section 906 Certification by Co-CEO

         32.2  Section 906 Certification by Co-CEO


     (b) Reports on Form 8-K:

          Date                        Items
          ----                        -----

          April 11, 2005              1.01, 1.02, 50.2, 8.01, 9.01

















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<PAGE>


                                   SIGNATURES

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

Dated:  July 25, 2005

                                          COASTAL BANCSHARES ACQUISITION CORP.



                                          /s/ Cary M. Grossman
                                          ------------------------------------
                                          Cary M. Grossman
                                          Co-Chief Executive Officer


                                          /s/ W. Donald Brunson
                                          ------------------------------------
                                          W. Donald Brunson
                                          Co-Chief Executive Officer












                                       14
<PAGE>


                                  EXHIBIT INDEX

         Number                     Description
         ------                     -----------

         (a)  Exhibits:

              31.1          Section 302 Certification by Co-CEO

              31.2          Section 302 Certification by Co-CEO

              32.1          Section 906 Certification by Co-CEO

              32.2          Section 906 Certification by Co-CEO

















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