<PAGE>   1


                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                    ---------

                                    FORM 10-K

                        FOR ANNUAL AND TRANSITION REPORTS
                     PURSUANT TO SECTIONS 13 OR 15(D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

[ X ]   ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
        ACT OF 1934

For the fiscal year ended December 31, 1997

                                       OR

[   ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
        EXCHANGE ACT OF 1934

For the transition period from __________________  to  _____________________.

                        Commission file number: 000-23713

                              GULF WEST BANKS, INC.
             (Exact Name of Registrant as Specified in Its Charter)

                FLORIDA                                  59-3276590
      (State or Other Jurisdiction                    (I.R.S. Employer
    of Incorporation or Organization)                Identification No.)

         425 22ND AVENUE NORTH
         ST. PETERSBURG, FLORIDA                           33704
(Address of Principal Executive Offices)                (Zip Code)

Registrant's telephone number, including area code: (813) 894-5696

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class                 Name of Each Exchange on Which Registered
-------------------                 -----------------------------------------
       NONE                                            NONE

Securities registered pursuant to Section 12(g) of the Act:

                     COMMON STOCK, PAR VALUE $1.00 PER SHARE
                                (Title of Class)

         Indicate by check mark whether the registrant: (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 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
                                               -----    -----

         Indicate by check mark if disclosure of delinquent filers pursuant to
Item 405 of Regulation S-K is not contained herein, and will not be contained,
to the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K. [ ]



<PAGE>   2



         The aggregate market value of the voting stock held by non-affiliates
of the registrant as of February 28, 1998, was $21,469,910. The number of shares
of the registrant's common stock outstanding as of February 28, 1998, was
5,458,786.

                       DOCUMENTS INCORPORATED BY REFERENCE

The registrant's Annual Report to Shareholders for the fiscal year ended
December 31, 1997, is incorporated by reference into Part II of this Annual
Report on Form 10-K. The registrant's definitive Proxy Statement relating to the
registrant's 1998 annual meeting of shareholders, as filed with the Commission
on March 16, 1998, is incorporated by reference into Part III of this Annual
Report on Form 10-K.


                                        2

<PAGE>   3





                                     PART I

ITEM 1.  BUSINESS.

INTRODUCTION

         Gulf West Banks, Inc. ("Gulf West" or the "Company") is a one-bank
holding company registered under the Bank Holding Company Act of 1956, as
amended, and was incorporated under the laws of the State of Florida effective
October 24, 1994. Gulf West's principal assets are all of the issued and
outstanding shares of capital stock of Mercantile Bank, a Florida state banking
corporation which is located in St. Petersburg, Florida ("Mercantile"), and all
of the issued and outstanding shares of Liberty Leasing Corporation ("Liberty"),
a Florida corporation located in Tampa, Florida, which is engaged in equipment
leasing.

         The principal executive offices of Gulf West and Mercantile are located
at 425 22nd Avenue North, St. Petersburg, Florida 33704, and their telephone
number is (813) 894-5696. Liberty is located at 5440 Mariner Street, Suite 204,
Tampa, Florida 33609 and its telephone number is (813) 287-2982.

ACTIVITIES OF GULF WEST

         Currently, the only business activity of Gulf West is to own and
operate Mercantile and Liberty. Mercantile provides a wide range of personal and
commercial banking services to customers located in the Florida counties of
Pinellas, Hillsborough, and Pasco. The activities of Mercantile are described in
more detail below under the caption "Activities of Mercantile." Liberty is an
equipment leasing company that arranges financing for a variety of equipment for
all types of businesses. Liberty currently comprises a de minimis portion of
Gulf West's total assets and earnings. Although other activities are permitted
under the Bank Holding Company Act of 1956, management of Gulf West has no
current plans to engage in any other activities, although it may choose to do so
at a later date.

ACQUISITION OF CITIZENS NATIONAL BANK AND TRUST COMPANY

         On January 16, 1998, the Company acquired Citizens National Bank and
Trust Company of Port Richey, Florida ("Citizens National") in exchange for
approximately 1,950,000 shares of the common stock of the Company. The
acquisition was effected through the merger of Citizens National with and into
Mercantile pursuant to an Amended and Restated Agreement and Plan of Merger,
dated October 16, 1997, by and among Gulf West, Mercantile, and Citizens
National. Citizens National was a national banking association which was
originally chartered by the Office of the Controller of the Currency on February
29, 1988. Prior to the acquisition, Citizens National engaged in general
commercial banking and trust services from its one full service banking location
in Port Richey, Florida. As a part of the acquisition, Mercantile amended its
charter to include trust powers so that it could continue the trust business of
Citizens National. As a result of the acquisition, Citizens National's single
banking office is currently being operated as the Port Richey office of
Mercantile.

ACTIVITIES OF MERCANTILE

         The principal services offered by Mercantile include commercial and
individual checking and savings accounts, money market accounts, certificates of
deposit, most types of loans, and letters of credit. Mercantile also provides
credit card services through a national credit card issuer and acts as issuing
agent for U.S. Savings Bonds, travelers checks, and cashiers checks. Mercantile
offers collection teller services, wire transfer facilities, safe deposit
facilities, and night depository facilities. Merctantile's transaction accounts
and time certificates are tailored to Mercantile's principal market area at
rates competitive with those offered in Mercantile's primary service area. In
addition, Mercantile offers certain retirement account services, including
individual retirement accounts. As described above, Mercantile also offers trust
services in its newly acquired Pasco County, Florida office. All of Mercantile's
deposit accounts are insured by the FDIC up to the maximum amount allowed by
law.

         Mercantile offers a wide range of short to medium-term commercial and
personal loans. Commercial loans include both secured and unsecured loans for
working capital (including inventory and receivables), business expansion
(including acquisition of real estate and improvements), purchase of equipment
and machinery, and Small Business Administration ("SBA") loans. Consumer loans
include secured and unsecured loans for financing automobiles, home
improvements, and personal investments. Mercantile also originates and holds
construction and acquisition loans on residential real estate. At December 31,
1997, commercial and consumer loans accounted for approximately 74.14% and
10.60%, respectively, of Mercantile's loan portfolio.

                                        3

<PAGE>   4



Loans on residential real estate accounted for the remaining 15.26% of the loan
portfolio. All loans are made in compliance with applicable federal and state
regulations.

         Mercantile's lobby business hours are generally from 9:00 a.m. to 4:00
p.m., Monday through Thursday, 9:00 a.m. to 6:00 p.m. on Fridays, and 9:00 a.m.
to 12:00 p.m. on Saturdays. The drive-up teller hours are generally 8:00 a.m. to
5:00 p.m. on Monday through Thursday, 8:00 a.m. to 6:00 p.m. on Fridays, and
8:00 a.m. to 12:00 p.m. on Saturdays. However, drive-in hours do vary slightly
from office to office depending on customer requirements. Mercantile also has
24-hour automatic teller machines (ATM's) at each of its offices. Mercantile
issues debit cards to its customers that can be used in any bank ATM as well as
any ATM's which are members of the HONOR and CIRRUS networks.

         Mercantile's data processing is handled by an outside service bureau --
FiServ, Inc. of Atlanta, Georgia. Item processing is handled by Barnett
Technologies, Inc., Tampa, Florida. The amount paid for these services is
dependent on the volume of transactions and the number of accounts being
processed. In the year ended December 31, 1997, Mercantile paid $409,000 for
data processing services. Mercantile makes extensive use of personal computers
in all areas of its operations that permit efficient handling of deposit and
loan accounts and other paper intensive applications such as word processing.

MARKET AREA

         Seven of Mercantile's banking offices are located in Pinellas County,
Florida, two are located in Hillsborough County, Florida, and one is located in
Pasco County, Florida. All three counties are in the west central Gulf Coast of
Florida. The residential population of Pinellas County as of the 1990 census was
852,000 and the estimated population in 1997 was 887,000. Hillsborough County
had a residential population of 834,000 as of the 1990 census and the estimated
1997 population was 911,000. Pasco County had a residential population of
281,000 as of the 1990 census and the estimated 1997 population was 315,000. The
area has many more seasonal residents. The majority of Mercantile's business is
generated from customers whose businesses or residences are located in an area
within a radius of three miles of one of its banking offices. Four of the
Pinellas County offices are located within the city limits of St. Petersburg,
one is located in the unincorporated community of Tierra Verde, one is located
in the city limits of Dunedin, and another one in the city limits of Pinellas
Park. The Hillsborough County offices are located within the city limits of
Tampa and Temple Terrace, and the Pasco County office is located in the city
limits of Port Richey.

OPERATING STRATEGY

         The management of the Company believes that the emerging dominance of
large regional holding companies in the banking industry has created a need for
more locally-owned institutions with personalized banking services. Mercantile
was organized as a locally-owned, locally-managed community financial
institution, owned and managed by people who are actively involved in
Mercantile's market area and committed to its economic growth and development.
With local ownership, management, and directors, the Company's management
believes that Mercantile can be more responsive to the communities it serves and
tailor services to its customers' needs rather than provide the standardized
services that large holding companies tend to offer. Local ownership and
operation will allow faster, more responsive, and flexible decision-making which
is not available at the majority of financial institutions in or near
Mercantile's market area which are branch offices of large regional holding
company banks with headquarters located elsewhere in Florida or in the United
States.

         The principal business of Mercantile is to attract deposits from the
general public and to invest those funds in various types of loans and other
interest-earning assets. Funds are provided for the operations of Mercantile
through proceeds from the sale of investments and loans, from amortization and
repayment of outstanding loans, investments, net deposit inflow, and from
borrowings. Earnings of Mercantile depend primarily upon the difference between
(1) the interest and fees received by Mercantile from loans, the securities held
in its investment portfolio, and other investments and (2) expenses incurred by
Mercantile in connection with obtaining funds for lending (including interest
paid on deposits and other borrowings) and expenses relating to day-to-day
operations.

         To the extent market conditions permit, Mercantile follows a strategy
intended to insulate Mercantile's interest rate gap from adverse changes in
interest rates by maintaining spreads through the adjustability of its
interest-earning assets and interest-bearing liabilities. Mercantile's ability
to reduce interest-rate risk in its loan and investment portfolios will depend
upon a number of factors, many of which are beyond Mercantile's control,
including among others, competition for loans and deposits in its market area
and conditions prevailing in the secondary market.

         The primary sources of Mercantile's funds for lending and for other
general business purposes are Mercantile's capital, deposits, loan repayments,
and borrowings. Mercantile expects that loan repayments will be relatively
stable sources of funds,

                                        4

<PAGE>   5



while deposit inflows and outflows will be significantly influenced by
prevailing interest rates, money market rates, and general economic conditions.
Generally, short-term borrowings may be used to compensate for reductions in
normal sources of funds while longer-term borrowings may be used to support
expanded lending activities.

         Mercantile's customers are primarily individuals, professionals, small
and medium size businesses, and seasonal retirees located predominantly in
Pinellas, Hillsborough, and Pasco Counties, Florida. Mercantile's locations are
situated in areas that are convenient to these types of customers.

         Mercantile continually seeks to develop new business though an ongoing
program of personal calls on both present and potential customers. As a local
independent bank, Mercantile utilizes traditional local advertising media as
well as direct mailings, telephone contacts, and brochures to promote the bank
and develop loans and deposits. In addition, Mercantile's directors all have
worked and/or lived in or near Mercantile's market area for a number of years.
Management believes that this factor, coupled with the past and continued
involvement of the directors and officers in various local community activities,
will further promote Mercantile's image as a locally-oriented independent
institution, which management believes is an important factor to its targeted
customer base.

COMPETITION

         The banking industry in general, and Mercantile's market in particular,
is characterized by significant competition for both deposits and lending
opportunities. In its market area, Mercantile competes with other commercial
banks, savings and loan associations, credit unions, finance companies, mutual
funds, insurance companies, brokerage and investment banking firms, and various
other nonbank competitors. Competition for deposits may have the effect of
increasing the rates of interest Mercantile will pay on deposits, which would
increase Mercantile's cost of money and possibly reduce its net earnings.
Competition for loans may have the effect of lowering the rate of interest
Mercantile will receive on its loans, which would lower Mercantile's return on
invested assets and possibly reduce its net earnings. Many of Mercantile's
competitors have been in existence for a significantly longer period of time
than Mercantile, are larger and have greater financial and other resources and
lending limits than Mercantile, and may offer certain services that Mercantile
does not provide at this time. However, management feels that the market is rich
with opportunity to provide tailor-made custom banking products and services
which cannot be provided by the large institutions which offer many banking
products and services on an impersonal basis. With the recent acquisitions by
larger institutions, the opportunity has been enhanced as customers are looking
for more personalized service. This concept known as "niche" or "boutique"
banking will enable Mercantile to capture its share of the professional market,
entrepreneurs, and small to medium size commercial businesses while continuing
to provide exceptional banking services to all customers. The profitability of
Mercantile depends upon its ability to compete in this market area. At the
present time, Mercantile is unable to predict the extent to which competition
may adversely affect its financial condition and operating results.

         There are approximately 30 commercial banks and savings and loan
associations in Pinellas County. In Hillsborough County there are approximately
31 such institutions, and in Pasco County, there are approximately 20 such
institutions. Mercantile expects to receive competition from all of these
financial institutions, a significant number of which have offices located in
the St. Petersburg and Tampa areas. In order to compete with major financial
institutions and others in Mercantile's market area, Mercantile emphasizes
specialized and personal service by its directors, officers, and employees.
Mercantile believes that its local ownership and community oriented operating
philosophy and personalized banking service are competitive factors which
strengthen Mercantile.

EMPLOYEES

         As of December 31, 1997, Gulf West employed 113 employees of which 104
were full-time and nine were part-time, including six executive officers. Gulf
West's employees are not represented by a collective bargaining group, and Gulf
West considers its relations with its employees to be excellent. Gulf West
provides employees with benefits customary in the banking industry, which
include major medical insurance, group term life insurance, dental insurance,
long term disability insurance, a 401(k) savings plan, and vacation and sick
leave.

YEAR 2000 COMPLIANCE

         The Company has an ongoing program designed to ensure that its
operational and financial systems will not be adversely affected by year 2000
software failures caused by processing errors arising from calculations
involving the year 2000 or subsequent years. Based on current estimates, the
Company expects to incur approximately $50,000 over the next three years on its
program to redevelop, replace, or repair its computer applications to make them
"year 2000 compliant." While the Company

                                        5

<PAGE>   6



believes that it is doing everything technologically possible to assure year
2000 compliance, it is to some extent dependent on vendor cooperation. The
Company is requiring its computer system and software vendors to represent that
the products provided are, or will be, year 2000 compliant, and the Company has
planned a program of testing for compliance. The Company recognizes that any
year 2000 compliance failures could result in additional expense to the Company.

ACQUISITION OF FORMER NATIONSBANK FACILITY

         In December 1997, Mercantile purchased a former NationsBank branch
office facility located at 4801 W. Hillsborough Avenue in Tampa, Florida. This
facility is a 1,900 square foot, free-standing, one-story building with five
drive-in teller lanes and four inside teller stations. Mercantile has received
regulatory approval to open an office at this location, and the opening of this
office is currently scheduled for early in the second quarter of 1998.

ITEM 2.  PROPERTIES.

         Gulf West corporate offices are located within the main office of
Mercantile. Liberty Leasing occupies approximately 1,800 square feet of leased
space in the Tampa Koger Center located at 5440 Mariner Street. The lease is for
a three-year term expiring July 31, 1999, automatically renewable for successive
three-year terms unless a ninety-day notice is provided by either party to the
lease. The rental payments are subject to annual CPI escalators with a minimum
of 5%. The current base monthly rent is $2,105 plus taxes.

         In addition to its main office in St. Petersburg, Mercantile also has
four additional locations throughout St. Petersburg, at the Koger Executive
Center, in the "Maximo" area of South St. Petersburg, in the downtown business
district and an operations center on Scherer Drive. Mercantile also has branches
in Tierra Verde, in the Westshore area in Tampa, in the Countryside area in
Clearwater, in Temple Terrace, and in Largo. As discussed above in "Acquisition
of Citizens National Bank and Trust Company," Mercantile has also recently
acquired an office in the Pasco County city of Port Richey.

         Mercantile's main office is located at 425 22nd Avenue North, St.
Petersburg, Florida 33704. This office also serves as Mercantile's main office
banking facility. It has approximately 9,000 square feet and houses a branch
office on the first floor, the commercial lending department and Mercantile's
and Gulf West's executives offices. The building was constructed in 1987 and is
a two-story structure located on a 71,000 square foot parcel of land which
Mercantile owns. Two other buildings are also located on this site, both one
story structures containing 3,100 and 6,500 square feet of space which
Mercantile currently leases to small retailers and professional offices. The
property is located less than two miles north of the downtown business district
of St. Petersburg. Mercantile's branch office at this location was opened in
1987. It contains approximately 2,700 square feet and has two drive-in lanes, an
ATM, a night depository, safety deposit boxes and four lobby teller stations. At
December 31, 1997 this office had $39,029,274 in deposits.

         The Tierra Verde office is located at 1110 Pinellas Bayway, Tierra
Verde, Florida 33715. Tierra Verde is an unincorporated island community
southwest of downtown St. Petersburg, Florida. The residents of Tierra Verde are
generally affluent, with one of the highest per capita income levels on
Florida's west coast. Mercantile opened for business at this office in May 1986,
and this was Mercantile's main office until November 1988, when the main office
was relocated to its current location. Mercantile's branch office in Tierra
Verde is located on the first floor of a two story commercial condominium
complex which fronts on the island's main thoroughfare. The branch contains
2,000 square feet with three lobby teller stations, an ATM, night depository,
safety deposit boxes and one drive-in teller lane. Mercantile also owns 2,000
square feet of office space directly above the branch which houses a conference
room, meeting room and office space. At December 31, 1997, this office had
$31,251,883 in deposits.

         The Koger office is located at 9400 4th Street North, St. Petersburg,
Florida 33702. Mercantile rents approximately 2,500 square feet on the first
floor of a building that is part of a multi-building professional office complex
known as the Koger Executive Center. The complex is located approximately five
miles north of Mercantile's main office and the building in which the branch is
located fronts on 4th Street North, which is a major north-south traffic artery
in St. Petersburg. The office was opened in 1991 and at December 31, 1997, had
$22,237,268 in deposits. The office has four lobby teller stations, an ATM, a
night depository, safe deposit boxes and three drive-in teller lanes.

         The Westshore branch office is located at 4202 West Kennedy Boulevard,
Tampa, Florida 33609, on the corner of Lois Avenue and Kennedy Boulevard. The
office is in a 4,000 square foot, free-standing, one story building which is
leased by Mercantile. The office is within one mile of the center of the
Westshore business district, which is a major business center of Tampa. The
office was opened in late 1993 and at December 31, 1997, had $14,700,443 in
deposits. The office has four lobby

                                        6

<PAGE>   7



teller stations, four drive-in teller lanes, an ATM, a night depository and safe
deposit boxes.

         Mercantile's Countryside office at 28100 U.S. Highway 19 North,
Clearwater, Florida 33761 is located within the city limits of Dunedin but has a
Clearwater mailing address. Mercantile leases approximately 3,325 square feet on
the first floor of a five story, 80,000 square foot professional office
building. Chase Manhattan Bank of Florida occupied this facility until late
1994, when the office was closed due to a consolidation program by that
institution. The facility has four lobby teller stations, three drive-in teller
lanes, an ATM, a night depository, and safe deposit boxes. This office opened in
March, 1995, and at December 31, 1997, had $16,157,420 in deposits.

         The Temple Terrace office is located at 9400 North 56th Street, Temple
Terrace, Florida 33617. This facility is a 4,000 square foot, free-standing,
one-story building located on two acres of land that was purchased by Mercantile
in November, 1995. The office has six lobby teller stations, three drive-in
teller lanes, an ATM, a night depository and safe deposit boxes and was opened
in January, 1996. Total deposits of this office at December 31, 1997, were
$16,591,473.

         Mercantile's Bryan Dairy office is located at 8040 Bryan Dairy Road,
Largo, Florida 33777, within the corporate city limits of Pinellas Park.
Mercantile rents 5,000 square feet in a commercial complex that was constructed
in mid-1996. The office opened in September 1996, and has four lobby teller
stations, three drive-in teller lanes, an ATM, a night depository and safe
deposit boxes. At December, 31, 1997, total deposits of this office were
$5,217,065.

         The Maximo office is located at 3655 50th Avenue South, St. Petersburg,
Florida 33711. Mercantile built this 3,000 square-foot facility in late 1996 and
opened the office in December, 1996. The building is situated on one acre of
land and contains four lobby teller stations, three drive-in teller lanes, an
ATM, a night depository and safe deposit boxes. On December 31, 1997, deposits
were $4,872,783.

         Mercantile's Downtown St. Petersburg office is located at 240 1st
Avenue South, St. Petersburg, Florida 33701 in the heart of the downtown
business district. The Bank rents approximately 3,436 square feet on the first
floor of a four story office building. The facility has four lobby teller
stations, a walk-up teller station, two drive-in teller lanes, an ATM, a night
depository and safe deposit boxes. The office was opened in February 1997. At
December 31, 1997, total deposits of this office were $5,058,919.

         Mercantile's Port Richey office is located at 9550-1 U.S. Highway 19,
Port Richey, Florida 34668. As noted above under the caption "Acquisition of
Citizens National Bank and Trust Company," Mercantile acquired the Pasco County
office as a result of the merger of Citizens National with and into Mercantile
on January 16, 1998. This office occupies 10,210 square feet of leased space on
two floors. The facility has four lobby teller stations and two outside drive-in
teller lanes, as well as safe deposit booths.
As of January 31, 1998, total deposits at this office were $65,089,038.

         In December 1997, Mercantile purchased a former NationsBank branch
office facility located at 4801 W. Hillsborough Avenue in Tampa, Florida 33614.
This facility is a 1,900 square foot, free-standing, one-story building with
five drive-in teller lanes and four inside teller stations. Mercantile has
received regulatory approval to open an office at this location, and the opening
of this office is currently scheduled for early in the second quarter of 1998.

         Mercantile also rents approximately 6,636 square feet in a professional
office complex located at 2860 Scherer Drive, St. Petersburg, Florida 33716.
This facility houses Mercantile's consumer and residential lending departments,
the data processing operations department, the deposit and loan operations
department and the accounting department.


                                        7

<PAGE>   8



         The following table presents information regarding the terms of the
leases to which Mercantile is currently a party:

<TABLE>
<CAPTION>
                                                                               CURRENT
                          SQUARE         START/                                MONTHLY
LOCATION                   FEET          END              OPTIONS              BASE RENT         OTHER TERMS
--------                   ----          ---              -------              ---------         -----------
<S>                        <C>           <C>              <C>                  <C>               <C> 
Koger Office               2,500         4/1/96 -         Automatic            3,136             Annual CPI increases
9400 4th Street N.                       3/31/01          5 Year               Plus use tax
St. Petersburg                                            Renewals             CAM

Countryside Office         3,325         3/1/95 -         Two option           5,993             Annual CPI not less than 4%
28100 US 19 North                        2/28/05          Periods of           Plus use tax
Clearwater                                                5 years each         CAM

Westshore Office           4,000         9/1/93 -         Two option           4,679             Annual CPI not less than 4%
4202 W. Kennedy Blvd.                    8/31/98          Periods of           Plus use tax
Tampa                                                     5 years each         CAM

Bryan Dairy Office         5,000         7/1/96 -         Four option          6,250             Fixed for 1st 5 years -
8040 Bryan Dairy Road                    6/30/11          periods of           Plus use tax      3% annual increases thereafter
Largo                                                     5 years each         CAM

Downtown St.
Petersburg Office          3,436         1/1/97 -         Sublease             4,583
240 1st Avenue South                     7/31/98                               Plus use tax
St. Petersburg
                                         8/1/98 -         One option           Year 1 - 4,054
                                         7/31/03          period for           Year 2 - 4,369
                                                          5 years              Year 3 - 4,518
                                                                               Year 4 - 4,673
                                                                               Year 5 - 4,833
                                                                               Plus use tax
                                                                               CAM

Operations Center          6,636         6/1/96 -         One option           Year 1 - 4,015
2860 Scherer Drive                       5/31/01          period of            Year 2 - 4,153
Suite 630                                                 5 years              Year 3 - 4,291
St. Petersburg                                                                 Year 4 - 4,429
                                                                               Year 5 - 4,567
                                                                               Plus use tax
                                                                               CAM
Port Richey Office
9550-1 U.S. Highway 19
Port Richey

         First Floor       5,300          5/4/88-         One option           $7,265
                                          6/4/98          period of            Plus use tax
                                                          10 years             CAM

         Second Floor      5,210          8/25/98         Two option           $2,171
                                          9/25/99         periods of 5         Plus use tax
                                                          years each           CAM
</TABLE>


                                        8

<PAGE>   9





ITEM 3.  LEGAL PROCEEDINGS.

         Gulf West and Mercantile are parties to various legal proceedings in
the ordinary course of business. Management does not believe that there is any
pending or threatened proceeding against Gulf West or Mercantile which, if
determined adversely, would have a material adverse effect on the business,
results of operations, or financial position of Gulf West or Mercantile.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

         None.


                                     PART II

ITEM 5.  MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.

         (a) Although there is no established public trading market for the
Company's common stock, the brokerage firm of Raymond James & Associates, Inc.
facilitates trades of the Company's common stock in the over-the-counter market.
Prices reported to the Company ranged from $4 5/8 to $5 1/8 per share during
1996 and $5 1/8 to $5 1/2 during 1997. The Company paid cash dividends of $0.03
per share in 1995, paid a 5% stock dividend in 1996 and declared a 10% stock
dividend in January, 1998.
Further dividends, if any, will be determined by the Board of Directors.

         As of January 17, 1998, the Company had approximately 625 holders of
record of common stock.

         The following sales of shares of Gulf West common stock, par value
$1.00 per share ("Gulf West Common Stock"), were not registered pursuant to the
Securities Act of 1933, as amended (the "Securities Act"), but were issued
pursuant to the exemptions indicated below:

         On January 27, 1997, 7,691 shares of Gulf West Common Stock were issued
to officers and employees of Gulf West pursuant to Gulf West's employee stock
purchase plan at a per share purchase price of $5.12. Such shares were issued
pursuant to the intrastate offering exemption contained in Section 3(11) of the
Securities. Such exemption was available because all shares were offered and
sold only to employees of Gulf West or its subsidiaries, all of whom are
residents of Florida, and Gulf West is incorporated and does business solely in
the State of Florida.

         On May 6, 1997, each member of the Board of Directors of Gulf West was
issued 420 shares of Gulf West Common Stock as compensation for his service on
the Board of Directors. This transaction was made in reliance on the exemption
set forth in Rule 504 under the Securities Act.

          On September 23, 1997, the President of Gulf West, pursuant to the
exercise of options, purchased an aggregate of 5,595 shares of Gulf West Common
Stock. 2,625 of such shares were purchased at a per share exercise price of
$3.81, and 2,970 of such shares were purchased at a per share exercise price of
$2.92. This transaction was made in reliance on the exemption set forth in Rule
504 under the Securities Act.

         (b) Not applicable.

ITEM 6.  SELECTED FINANCIAL DATA.

         The information required by this Item is incorporated herein by
reference to the information set forth under the caption "SELECTED FINANCIAL
DATA" in the 1997 Annual Report to Shareholders of Gulf West (the "1997 Annual
Report")..

ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS.

         The information required by this Item is incorporated herein by
reference to the information set forth under the caption "MANAGEMENT'S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS" in the
1997 Annual Report.

                                        9

<PAGE>   10



ITEM 7A.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

         The information required by this Item is incorporated herein by
reference to the information set forth under the following captions contained in
the 1997 Annual Report:

         (i)   "MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS -- Market Risk;"

         (ii)  "MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS -- Asset-Liability Structure;" and

         (iii) Note 10 to "CONSOLIDATED FINANCIAL STATEMENTS OF GULF WEST BANKS,
INC. AND SUBSIDIARIES."

ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

         The information required by this Item is incorporated herein by
reference to the information set forth under the caption "FINANCIAL REVIEW" in
the 1997 Annual Report.

ITEM 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND 
         FINANCIAL DISLOSURE.

         None.


                                    PART III

ITEM 10.  DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT.

         The information required by this Item regarding the Company's directors
and executive officers is incorporated herein by reference to the information
set forth under the caption "MANAGEMENT" in the Company's definitive Proxy
Statement for the 1998 Annual Meeting of Shareholders, as filed with the
Commission on March 16, 1998 (the "1998 Proxy Statement"). The information
required by this Item regarding compliance with Section 16(a) of the Securities
Exchange Act of 1934 is incorporated herein by reference to the information set
forth under the caption "EXECUTIVE COMPENSATION -- Section 16(a) Beneficial
Ownership Reporting Compliance" in the Company's 1998 Proxy Statement.

ITEM 11.  EXECUTIVE COMPENSATION.

         The information required by this Item is incorporated herein by
reference to the information set forth under the caption "EXECUTIVE
COMPENSATION" in the Company's 1998 Proxy Statement.



                                       10

<PAGE>   11



ITEM 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.

         The information required by this Item is incorporated herein by
reference to the information set forth under the caption "SECURITY OWNERSHIP OF
CERTAIN BENEFICIAL OWNERS AND MANAGEMENT" in the 1998 Proxy Statement.

ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

         Mercantile has extended loans to various officers and directors of
Mercantile and Gulf West. All of these loans were made in the ordinary course of
business, were made on substantially the same terms (including interest rates
and collateral) as those prevailing at the time for comparable transactions with
other persons, and did not involve more than the normal risk of collectibility
or present other unfavorable features.


                                     PART IV

ITEM 14.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K.

         (a)      Documents filed as part of this Annual Report on Form 10-K:

                  (1) Financial Statements

<TABLE>
<S>                                                                      <C>
Independent Auditor's Report.............................................page 47 of 1997 Annual Report
Consolidated Balance Sheet...............................................page 27 of 1997 Annual Report
Consolidated Statement of Earnings.......................................page 28 of 1997 Annual Report
Consolidated Statements of Stockholders' Equity..........................page 29 of 1997 Annual Report
Consolidated Statements of Cash Flows....................................page 30 of 1997 Annual Report
</TABLE>

                  (2) All schedules have been included as an exhibit to this
Annual Report on Form 10-K or the information is included elsewhere in the
financial statements or notes thereto.

                  3)       Exhibits:

<TABLE>
<CAPTION>
Exhibit Number                     Description of Document
--------------                     -----------------------
<S>                       <C>
2*                        Amended and Restated Agreement and Plan of Merger by and among Citizens
                          National Bank and Trust Company, Inc., Gulf West Banks, Inc. and Mercantile Bank
3.1*                      Articles of Incorporation of Gulf West Banks, Inc.
3.2*                      Bylaws of Gulf West Banks, Inc.
10.1*                     Form of Registration Rights Agreement with Gordon W. Campbell and John Wm.
                          Galbraith
10.2*                     Salary Continuation Agreements with Gordon W. Campbell, Barry K. Miller, and
                          Robert A. Blakley (1)
10.3*                     Employment Contract with Gordon W. Campbell (1)
10.4*                     Stock Option Plan (1)
11**                      Statement regarding computation of per share earnings
13                        1997 Annual Report to Shareholders
21*                       Subsidiaries of Registrant
23.1                      Consent of Hacker, Johnson, Cohen & Grieb PA
27                        Financial Data Schedule (for SEC use only)
</TABLE>


                           (1) denotes a management contract or compensatory
                  plan or arrangement required to be filed as an exhibit hereto
                  pursuant to Item 14(c) of Form 10-K.

                           *incorporated by reference to the exhibits included
                  in Amendment No. 2 to Gulf West's S-4 Registration Statement,
                  as filed with the Securities and Exchange Commission on
                  December 4, 1997 (Registration No. 333-37307).

                                       11

<PAGE>   12



                           **incorporated by reference to Note 1 of the
                  Consolidated Financial Statements of Gulf West Banks, Inc. and
                  Subsidiaries, as contained in the 1997 Annual Report to
                  Shareholders.


         (b) No reports on Form 8-K were filed by the Company during the quarter
ended December 31, 1997.




                                       12

<PAGE>   13



                                   SIGNATURES

         Pursuant to the requirements of Section 13 or 15(d) 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.


                                    GULF WEST BANKS, INC.


                                    By: /s/ Gordon W. Campbell
                                        ---------------------------------
                                            Gordon W. Campbell, President

                                    Date: February 19, 1998

         Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates


<TABLE>
<CAPTION>
               Signature                               Capacity                                 Date
               ---------                               --------                                 ----
<S>                                     <C>                                              <C>
 /s/ Gordon W. Campbell                 President, Chairman of the Board                 February 19, 1998
-------------------------------
Gordon W. Campbell

 /s/ Barry K. Miller                    Executive Vice President/Secretary/              February 19, 1998
-------------------------------         Treasurer (principal financial officer
Barry K. Miller                         and principal accounting officer)

/s/ John Wm. Galbraith                  Director                                         February 25, 1998
-------------------------------
John Wm. Galbraith

/s/ Thomas M. Harris                    Director                                         February 19, 1998
-------------------------------
Thomas M. Harris

/s/ Algis Koncius                       Director                                         February 19, 1998
-------------------------------
Algis Koncius

/s/ Louis P. Ortiz                      Director                                         February 19, 1998
-------------------------------
Louis P. Ortiz

/s/ John C. Petagna, Jr.                Director                                         February 19, 1998
-------------------------------
John C. Petagna, Jr.

/s/ P.N. Risser, III                    Director                                         February 19, 1998
-------------------------------
P. N. Risser, III

/s/ Ross E. Roeder                      Director                                         February 19, 1998
-------------------------------
Ross E. Roeder
</TABLE>





                                       13

<PAGE>   14


                                  EXHIBIT INDEX


<TABLE>
<CAPTION>
Exhibit Number                     Description of Document
--------------                     -----------------------
<S>                   <C>
     2*               Amended and Restated Agreement and Plan of Merger by and among Citizens
                      National Bank and Trust Company, Inc., Gulf West Banks, Inc. and Mercantile Bank
     3.1*             Articles of Incorporation of Gulf West Banks, Inc.
     3.2*             Bylaws of Gulf West Banks, Inc.
     10.1*            Form of Registration Rights Agreement with Gordon W. Campbell and John Wm.
                      Galbraith
     10.2*            Salary Continuation Agreements with Gordon W. Campbell, Barry K. Miller, and
                      Robert A. Blakley
     10.3*            Employment Contract with Gordon W. Campbell
     10.4*            Stock Option Plan
     11**             Statement regarding computation of per share earnings
     13               1997 Annual Report to Shareholders
     21*              Subsidiaries of Registrant
     23.1             Consent of Hacker, Johnson, Cohen & Grieb PA
     27               Financial Data Schedule (for SEC use only)
</TABLE>

                  *incorporated by reference to the exhibits included in
         Amendment No. 2 to Gulf West's S-4 Registration Statement, as filed
         with the Securities and Exchange Commission on December 4, 1997
         (Registration No. 333-37307).

                  **incorporated by reference to Note 1 of the Consolidated
         Financial Statements of Gulf West Banks, Inc. and Subsidiaries, as
         contained in the 1997 Annual Report to Shareholders.


                                       14