FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

        (Mark One)
  X     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
-----   EXCHANGE ACT OF 1934


                For the quarterly period ended September 30, 2000

                                       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 0-24683

                               FLORIDA BANKS, INC.
             (Exact name of registrant as specified in its charter)

            FLORIDA                                            58-2364573
   (State or other jurisdiction of                          (I.R.S. Employer
     incorporation or organization)                         Identification No.)

                          5210 BELFORT ROAD, SUITE 310
                                JACKSONVILLE, FL
                                      32256
                    (Address of principal executive offices)

                                 (904) 332-7772
              (Registrant's telephone number, including area code)


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 the number of shares outstanding of each of the registrant's classes of
common stock, as of the latest practicable date.

   Title                                                Outstanding
   COMMON STOCK, $.01 PAR VALUE                OUTSTANDING AT SEPTEMBER 30, 2000
   PER SHARE                                            5,688,651


<PAGE>

<TABLE>
ITEM 1. FINANCIAL STATEMENTS
FLORIDA BANKS, INC.

CONDENSED BALANCE SHEETS  (Unaudited)
----------------------------------------------------------------------------------------------------------------------
                                                                                        September 30,     December 31,
                                                                                           2000              1999
ASSETS

<S>                                                                                       <C>                <C>
CASH AND DUE FROM BANKS                                                                   $10,333,594        $6,088,628

FEDERAL FUNDS SOLD AND REPURCHASE AGREEMENTS                                               15,247,000        19,870,000
                                                                                      ---------------   ---------------
           Total cash and cash equivalents                                                 25,580,594        25,958,628


INVESTMENT SECURITIES:
  Available for sale, at fair value (cost $33,845,349 and $28,681,760
    at September 30, 2000, and December 31, 1999, respectively)                            33,025,449        27,609,601
  Held to maturity, at cost (fair value $3,036,392)                                         3,116,863
  Other investments                                                                         1,182,150           901,800

LOANS:
  Commercial real estate                                                                  146,517,998        69,260,661
  Commercial                                                                               87,936,853        68,991,516
  Residential mortgage                                                                     13,547,874        10,845,841
  Consumer                                                                                 11,453,498         7,245,919
  Credit card and other loans                                                               1,445,833         1,244,256
                                                                                      ---------------   ---------------
           Total loans                                                                    260,902,056       157,588,193
  Allowance for loan losses                                                                (3,361,881)       (1,858,040)
  Net deferred loan fees                                                                     (112,244)          (71,341)
                                                                                      ---------------   ---------------
           Net loans                                                                      257,427,931       155,658,812

PREMISES AND EQUIPMENT, NET                                                                 3,012,757         2,440,818

OTHER REAL ESTATE OWNED                                                                       846,000

ACCRUED INTEREST RECEIVABLE                                                                 1,624,266         1,021,175

DEFERRED INCOME TAXES, NET                                                                  4,956,170         4,365,270

OTHER ASSETS                                                                                  607,282           185,497
                                                                                      ---------------   ---------------
TOTAL ASSETS                                                                             $331,379,462      $218,141,571
                                                                                      ===============   ===============

LIABILITIES AND SHAREHOLDERS' EQUITY

DEPOSITS:
  Noninterest-bearing demand                                                              $26,585,647       $22,035,567
  Interest-bearing demand                                                                  12,729,749        11,211,366
  Regular savings                                                                          44,767,743        38,954,093
  Money market accounts                                                                     2,247,432         1,593,930
  Time $100,000 and over                                                                   89,367,936        51,538,664
  Other time                                                                               92,230,341        33,772,060
                                                                                      ---------------   ---------------
          Total deposits                                                                  267,929,848       159,105,680

REPURCHASE AGREEMENTS SOLD                                                                 15,702,778        11,037,111

OTHER BORROWED FUNDS                                                                        7,223,282         7,242,352

ACCRUED INTEREST PAYABLE                                                                    1,721,106           615,549

ACCOUNTS PAYABLE AND ACCRUED EXPENSES                                                         827,818           905,024
                                                                                      ---------------   ---------------
          Total liabilities                                                               293,404,835       178,906,716
                                                                                      ---------------   ---------------

SHAREHOLDERS' EQUITY:
  Common stock, $.01 par value; 30,000,000 shares authorized;
    5,929,751 and 5,853,756 shares issued, respectively                                        59,298            58,538
  Additional paid-in capital                                                               46,585,497        46,219,104
  Warrants                                                                                    164,832           164,832
  Accumulated deficit (deficit of $8,434,037
     eliminated upon quasi-reorganization on December 31, 1995)                            (6,816,792)       (5,680,069)
  Treasury Stock, 241,100 and 135,100 shares at cost                                       (1,506,836)         (858,844)
  Accumulated other comprehensive loss, net of tax                                           (511,372)         (668,706)
                                                                                      ---------------   ---------------
          Total shareholders' equity                                                       37,974,627        39,234,855
                                                                                      ---------------   ---------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                               $331,379,462      $218,141,571
                                                                                      ===============   ===============
</TABLE>


                                       2
<PAGE>
<TABLE>

FLORIDA BANKS, INC.

CONDENSED STATEMENTS OF OPERATIONS (Unaudited)
--------------------------------------------------------------------------------------------------------------------------

                                                              Three-Month Period Ended        Nine-Month Period Ended
                                                                    September 30,                  September 30,
                                                            --------------------------------------------------------------
                                                                2000            1999           2000             1999
                                                            --------------------------------------------------------------

<S>                                                            <C>            <C>
INTEREST INCOME:
  Loans, including fees                                        $5,350,755     $2,382,905     $13,804,320    $6,008,352
  Investment securities                                           682,268        383,901       1,961,162     1,104,395
  Federal funds sold                                              317,730        235,196         901,492       689,175
                                                                ---------      ---------      ----------     ---------
          Total interest income                                 6,350,753      3,002,002      16,666,974     7,801,922
                                                                ---------      ---------      ----------     ---------
INTEREST EXPENSE:
  Deposits                                                      3,510,830      1,157,097       8,597,015     2,766,530
  Repurchase agreements                                           225,121        143,736         608,822       446,215
  Borrowed funds                                                  112,983         29,585         309,441        60,754
                                                                ---------      ---------       ---------     ---------

          Total interest expense                                3,848,934      1,330,418       9,515,278     3,273,499
                                                                ---------      ---------       ---------     ---------

NET INTEREST INCOME                                             2,501,819      1,671,584       7,151,696     4,528,423

PROVISION FOR LOAN LOSSES                                         876,846        718,000       1,586,302       983,000
                                                                ---------      ---------       ---------     ---------

NET INTEREST INCOME AFTER
   PROVISION FOR LOAN LOSSES                                    1,624,973        953,584       5,565,394     3,545,423
                                                                ---------      ---------       ---------     ---------

NONINTEREST INCOME:
  Service fees                                                    122,190         121,950        459,782       321,361
  Gain (Loss) on sale of available for sale investment
    securities                                                      4,747                         (4,203)       31,729
  Other noninterest income                                        124,787          29,419        148,730        67,981
                                                                ---------      ----------        -------     ---------

                                                                  251,724         151,369        604,309       421,071
                                                                ---------      ----------        -------     ---------
NONINTEREST EXPENSES:
  Salaries and benefits                                         1,641,529      1,507,493       5,092,913     3,914,600
  Occupancy and equipment                                         398,964        240,027       1,130,339       586,722
  Data processing                                                 130,280         59,802         322,243       151,250
  Other                                                           467,840        363,852       1,446,755     1,215,381
                                                                ---------      ---------       ---------     ---------

                                                                2,638,613      2,171,174       7,992,250     5,867,953
                                                                ---------      ---------       ---------     ---------

LOSS BEFORE BENEFIT
  FOR INCOME TAXES                                               (761,916)    (1,066,221)     (1,822,547)   (1,901,459)

BENEFIT FOR INCOME TAX                                           (286,709)      (364,025)       (685,824)     (722,583)
                                                                ---------      ---------       ---------     ---------

NET LOSS                                                        $(475,207)     $(702,196)    $(1,136,723)  $(1,178,876)
                                                                =========      =========       =========     =========
LOSS PER SHARE:
  Basic                                                            $(0.08)        $(0.12)         $(0.20)       $(0.20)
                                                                =========      =========       =========     =========
  Diluted                                                          $(0.08)        $(0.12)         $(0.20)       $(0.20)
                                                                =========      =========       =========     =========
</TABLE>

                                       3
<PAGE>
<TABLE>
FLORIDA BANKS, INC.
Condensed Statements of Shareholders' Equity (Unaudited)


                                                                                                       Accumulated
                                                                                                        Other
                                                                          Warrants                   Comprehensive
                                           Common Stock       Additional  to Acquire                  Income (loss
                                      ----------------------   Paid-In     Common     Accumulated       Net of     Treasury
                                      Shares       Par Value   Capital     Stock        Deficit         Tax        Stock       Total
                                      ------       ---------  ----------  ----------  -----------   -------------- --------   ------

<S>                                  <C>        <C>        <C>          <C>
BALANCE JANUARY 1, 1999              5,582,756  $  58,528  $ 46,709,114 $ 164,832  $(3,832,909)     (11,716)            $42,587,849

Comprehensive (loss):
 Net loss (unaudited)                                                               (1,847,160)                          (1,847,160)
 Unrealized gain on available
  for sale investment securities,
  net of tax of $396,270                                                                           (656,990)               (656,990)
                                                                                                                           ---------

   Comprehensive loss                                                                                                     2,504,150)
Exercise of stock options                1,000         10         9,990                                                      10,000
Purchase of treasury stock                                                                                     (858,844)   (858,844)
                                     ---------    -------    ----------  --------    ---------     --------    -------    ---------
BALANCE, DECEMBER 31, 1999           5,853,756     58,538    46,219,104   164,832   (5,680,069)    (668,706)   (858,844) 39,234,855

Comprehensive (loss):
 Net loss (unaudited)                                                               (1,136,723)                          (1,136,723)
 Unrealized gain on available
  for sale investment securities,
  net of tax                                                                                        157,334                 157,334
                                                                                                                          ---------
   Comprehensive loss                                                                                                      (979,389)
Issuance of common stock to Employee
   Stock Purchase Plan                  79,995        760       366,393                                                     367,153
Purchase of treasury stock                                                                                     (647,992)   (647,992)

BALANCE September 30, 2000           ---------    -------    ----------  --------    ----------     -------   ---------   ----------
  (unaudited)                        5,929,751   $ 59,298  $ 46,585,497  $164,832  $(6,816,792)  $(511,372) $(1,506,836) $37,974,627
                                     =========    =======    ==========  ========    ==========     =======   =========   ==========


See Accompanying Notes to Condensed Consolidated Financial Statements.
</TABLE>

                                       4
<PAGE>
<TABLE>

FLORIDA BANKS, INC.
CONDENSED STATEMENTS OF CASH FLOWS  (Unaudited)
---------------------------------------------------------------------------------------------------------------------------
                                                                                    Nine Month Period Ended
                                                                                         September 30,
                                                                               -----------------------------------
                                                                                     2000              1999
                                                                               ----------------- -----------------

<S>                                                                             <C>               <C>
OPERATING ACTIVITIES:
  Net loss                                                                      $ (1,136,723)     $ (1,178,876)
  Adjustments to reconcile net loss to net cash
    provided by (used in) operating activities:
      Depreciation and amortization                                                  486,608           216,196
      Deferred income tax benefit                                                   (685,824)         (722,583)
      Loss (gain) on sale of securities                                                4,203           (31,729)
      Amortization of premiums (discounts) on investments, net                      (127,640)           36,938
      Provision for loan losses                                                    1,586,302           983,000
      Increase in accrued interest receivable                                       (603,091)         (368,368)
      Increase in accrued interest payable                                         1,104,557           121,268
      Decrease in other assets                                                      (421,815)          (98,813)
      Increase (decrease) in other liabilities                                       (77,206)          350,010
                                                                                ------------      ------------
           Net cash provided by (used in) operating activities                       129,371          (692,957)
                                                                                ------------      ------------

INVESTING ACTIVITIES:
  Proceeds from sales, paydowns and maturities of investment securities:
        Available for sale                                                         9,146,407        25,083,816
        Other                                                                      1,044,918            42,237
  Purchases of investment securities:
    Available for sale                                                           (14,247,574)      (26,609,764)
    Held to maturity                                                              (4,100,767)
    Other investments                                                               (280,350)         (573,637)
  Net increase in loans                                                         (104,201,421)      (61,780,045)
  Purchases of premises and equipment                                             (1,058,547)       (1,080,727)
                                                                                ------------      ------------
           Net cash used in investing activities                                (113,697,334)      (64,918,120)
                                                                                ------------      ------------
FINANCING ACTIVITIES:
  Net increase in demand deposits,
    money market accounts and savings accounts                                    12,536,615        22,359,376
  Net increase in time deposits                                                   96,287,553        33,851,497
  Increase (decrease) in repurchase agreements                                     4,665,667        (1,343,898)
  Increase (decrease) in borrowed funds                                              (19,067)        2,370,077
  Purchase of treasury stock                                                        (647,992)         (103,751)
  Exercise of stock options                                                          367,153            10,000
                                                                                ------------      ------------
           Net cash provided by financing activities                             113,189,929        57,143,301
                                                                                ------------      ------------

NET DECREASE IN CASH AND
  CASH EQUIVALENTS                                                                  (378,034)       (8,467,776)

CASH AND CASH EQUIVALENTS:

  Beginning of period                                                             25,958,628        20,945,139
                                                                                ------------      ------------

  End of period                                                                 $ 25,580,594      $ 12,477,363
                                                                                ============      ============
    SUPPLEMENTAL DISCLOSURES
  OF CASH FLOW INFORMATION:
    Cash paid for interest                                                       $ 8,410,721      $  3,152,231
                                                                                ============      ============

See notes to condensed financial statements.

</TABLE>

<PAGE>


FLORIDA BANKS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND NINE MONTH PERIODS ENDED
JUNE 30, 2000 AND 1999 (UNAUDITED)
--------------------------------------------------------------------------------


1.    BASIS OF PRESENTATION

      Florida Banks,  Inc. (the Company") was  incorporated  on October 15, 1997
      for the purpose of becoming a bank  holding  company and  acquiring  First
      National  Bank of Tampa  (the  "Bank").  On August 4,  1998,  the  Company
      completed its initial  public  offering and its merger (the "Merger") with
      the Bank  pursuant to which the Bank was merged with and into Florida Bank
      No. 1, N.A., a wholly owned subsidiary of the Company, and renamed Florida
      Bank, N.A.  Shareholders of the Bank received  1,375,000  shares of common
      stock of the Company  valued at  $13,750,000.  The Merger was considered a
      reverse acquisition for accounting  purposes,  with the Bank identified as
      the accounting acquirer.  The Merger has been accounted for as a purchase,
      but no  goodwill  has  been  recorded  in the  Merger  and  the  financial
      statements of the Bank have become the historical  financial statements of
      the Company.

      The condensed  financial  statements have been prepared in accordance with
      the  rules and  regulations  of the  Securities  and  Exchange  Commission
      related  to  interim  financial  statements.   These  unaudited  condensed
      financial statements do not include all disclosures provided in the annual
      financial statements. The condensed financial statements should be read in
      conjunction with the financial  statements and notes thereto  contained in
      the  Company's  Registration  Statement  on Form  S-1 as  filed  with  the
      Securities and Exchange Commission.  All adjustments of a normal recurring
      nature  which,  in the  opinion of  management,  are  necessary  to fairly
      present  the  results of the interim  periods  have been made.  Results of
      operations for the three and nine month periods ended  September 30, 2000,
      are not necessarily  indicative of the results to be expected for the full
      year.

      The consolidated  financial statements include the accounts of the Company
      and the Bank. All significant  intercompany balances and transactions have
      been eliminated in consolidation.

2.    EARNINGS PER SHARE

      The  following  is  a  reconciliation  of  the  denominator  used  in  the
computation of basic and diluted earnings per common share.
<TABLE>

                                             Three Month Period Ended           Nine Month Period Ended
                                                   September 30,                     September, 30
                                          --------------------------------  --------------------------------
                                               2000             1999             2000             1999
                                          ---------------  ---------------  ---------------  ---------------

<S>                                            <C>             <C>
Weighted average number of common
  shares outstanding - Basic                   5,672,684       5,853,593        5,678,818       5,853,324

Incremental shares from the assumed
  conversion of stock options                         -               -                -               -
                                              ---------        ---------        ---------       ---------

Total - Diluted                               5,672,684        5,853,593        5,678,818       5,853,324
                                              =========        =========        =========       =========

</TABLE>

                                       6
<PAGE>


FLORIDA BANKS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND NINE MONTH PERIODS ENDED
SEPTEMBER 30, 2000 AND 1999 (UNAUDITED)  (Continued)
--------------------------------------------------------------------------------


      The exercise  prices of stock  options  outstanding  in the three and nine
      month periods ended September 30, 2000 and 1999 were above the fair market
      value of the  stock  during  those  periods,  therefore  the  options  are
      considered anti-dilutive for purposes of calculating the loss per share.

3.    NEW ACCOUNTING STANDARDS


      The Company  intends to adopt Statement of Financial  Accounting  Standard
      No. 133,  "Accounting for Derivative  Instruments and Hedging  Activities"
      (SFAS No. 133) on January 1, 2001.  SFAS No. 133 will  require the Company
      to  recognize  all  derivatives  on  the  balance  sheet  at  fair  value.
      Derivatives  that are not hedges must be  adjusted  to fair value  through
      income.  If the  derivative  is a hedge,  depending  on the  nature of the
      hedge,  changes in the fair  value of  derivatives  will  either be offset
      against the change in fair value of the hedged assets, liabilities or firm
      commitments through earnings,  or recognized in other comprehensive income
      until  the  hedged  item  is  recognized  in  earnings.  The  change  in a
      derivative's fair value related to the ineffective  portion of a hedge, if
      any, will be immediately recognized in earnings.  Management has completed
      its  evaluation  of the  impact  of the  adoption  of SFAS No.  133.  Four
      interest rate swaps have been  identified as derivatives  and will qualify
      for the fair value method of hedge  accounting under the short cut method.
      The fair value of these financial instruments as of September 30, 2000 was
      approximately $185,000.









                                       7
<PAGE>


Item 2.  Management's Discussion and Analysis of Financial Condition and Results
         of Operations

The  following  discussion  should  be read in  conjunction  with the  financial
statements and related notes appearing elsewhere in this Form 10-Q.

RESULTS OF OPERATIONS

Three Months Ended September 30, 2000 Compared to Three Months Ended September
30, 1999

The  Company's  net loss for the third  quarter of 2000  decreased  $227,000  to
$475,000 for the three-month  period ending  September 30, 2000, from a net loss
of $702,000 for the three-month  period ended September 30, 1999. Basic loss per
share  for the third  quarter  of 2000 was $.08  compared  to $.12 for the third
quarter  of  1999.  The  decrease  in the loss can be  primarily  attributed  to
increased  revenues  associated  with the Company's  growth over the past twelve
months.

The  increase in net interest  income of $830,000 or 49.7%,  to $2.5 million for
the third  quarter of 2000  compared to $1.7 million the third  quarter of 1999,
consists of an increase in interest  income of $3.3 million,  or 111.6%,  and an
increase  in  interest  expense of $2.5  million,  or 189.3%.  The  increase  in
interest  income in the second quarter of 2000 is primarily  attributable  to an
increase of $3.0 million in interest and fees on loans resulting from the growth
in the loan portfolio.

The  provision  for loan  losses  charged to  operations  increased  $159,000 to
$877,000  for the third  quarter of 2000 from  $718,000 in the third  quarter of
1999. This increase  represents the additional  reserves resulting from new loan
growth and additional provisions of $340,000 related to two loans.

Non-interest income increased 66.3% or $100,000 to $252,000 for the three months
ended  September 30, 2000 from $151,000 for the three months ended September 30,
1999. The increase in non-interest income primarily resulted from an increase in
other  non-interest  income to $125,000 at  September  30, 2000 from  $29,000 at
September 30, 1999. The increase in other non-interest income resulted primarily
from an increase in charges and fees not related to deposit accounts.

Non-interest  expense  increased  $467,000  or  21.5%  to $2.6  million  for the
three-month  period ended  September  30, 2000  compared to $2.2 million for the
three-month  period  ended  September  30, 1999.  The  increase in  non-interest
expense  resulted  primarily from increases in salaries and benefits,  occupancy
and equipment,  and other  expenses.  Salaries and benefits  expenses  increased
$134,000 to $1.6 million for the third  quarter of 2000 compared to $1.5 million
for the  third  quarter  of 1999.  This  increase  is  primarily  the  result of
additional  staff  associated  with the new  banking  offices.  The  increase in
occupancy  and  equipment  expense  of  $159,000,  or 66.2%,  resulted  from the
additional  leased space for the  Jacksonville  banking  office and the Company,
startup costs for the Pinellas County and Broward County banking offices and the
Ocala loan production office,  and from additional  depreciation and maintenance
expenses  resulting  from the  purchase of  additional  furniture  and  computer
equipment.  Data processing expenses increased $70,000 or 117.9% to $130,000 for
the three  months ended  September  30, 2000 as compared to $60,000 for the same
period in 1999. This increase resulted primarily from the additional  processing
expenses  for the Pinellas  County and Broward  County  banking  offices and the
Ocala loan production  office.  Other expenses increased  $104,000,  or 28.6% to
$468,000 for the third  quarter of 2000 compared to $364,000 for the same period
in 1999.  This  increase is primarily  attributed  to the  additional  operating
expenses of the Pinellas County and Broward County banking offices and the Ocala
loan production  office,  and the supporting  operations.  Specific  operational
expenses which increased were communications,  stationery and supplies,  postage
and courier, and consulting expenses.

                                       8
<PAGE>

A benefit for income taxes of $287,000 was recognized for the three-month period
ended  September  30, 2000 as compared to a benefit for income taxes of $364,000
for the same  period in 1999.  These  benefits  for income  taxes  represent  an
estimated effective annual tax rate of approximately 38%.

Nine Months Ended September 30, 2000 Compared to Nine Months Ended September
30, 1999

The  Company's net loss for the first nine months of 2000  decreased  $42,000 to
$1.1  million,  from a net loss of $1.2  million for the nine month period ended
September  30, 1999.  Basic loss per share for the first nine months of 2000 was
$.20 compared to basic loss per share of $.20 for the first nine months of 1999.
The decrease in the loss can be primarily attributed to revenues associated with
the growth of the Company's earning assets.

The increase in net interest  income of $2.6 million,  or 57.9%, to $7.2 million
for the first nine months of 2000  compared  to $4.5  million the same period in
1999, consists of an increase in interest income of $8.9 million, or 113.6%, and
an increase in interest expense of $6.2 million,  or 190.7%. The increase in net
interest  income of $2.6  million in the first nine months of 2000 is  primarily
attributable  to an  increase  of $7.8  million  in  interest  and fees on loans
resulting from the growth in the loan portfolio.

The provision for loan losses charged to operations  increased  $603,000 to $1.6
million for the first nine months of 2000 from  $983,000  for the same period in
1999. This increase  represents the additional  reserves resulting from new loan
growth and additional provisions of $340,000 related to two loans.

Non-interest  income increased 43.5% or $183,000 to $604,000 for the nine months
ended September 30, 2000 from $421,000 for the same period in 1999. The increase
in non-interest  income  primarily  resulted from an increase in service fees to
$460,000 at September  30, 2000 from  $321,000 for the same period in 1999.  The
increase in service fees resulted primarily from an increase in deposits.

Non-interest  expense  increased  $2.1  million or 36.2% to $8.0 million for the
nine month period ended September 30, 2000 compared to $5.9 million for the same
period in 1999. The increase in  non-interest  expense  resulted  primarily from
increases in salaries and benefits, occupancy and equipment, and other expenses.
Salaries and benefits expenses increased $1.2 million,  or 30.1% to $5.1 million
for the first nine months of 2000  compared  to $3.9  million for the first nine
months of 1999.  This  increase  is  primarily  the result of  additional  staff
associated with the new banking offices. The increase in occupancy and equipment
expense of $544,000, or 92.7%, resulted from the additional leased space for the
Jacksonville  banking  office and the  Company,  startup  costs for the Pinellas
County and Broward County banking offices and the Ocala loan production  office,
and from additional  depreciation  and maintenance  expenses  resulting from the
purchase  of  additional  furniture  and  computer  equipment.  Data  processing
expenses  increased  $171,000  or 113.1% to $322,000  for the nine months  ended
September  30,  2000  compared to  $151,000  for the same  period in 1999.  This
increase  resulted  primarily  from the additional  processing  expenses for the
Pinellas County and Broward County banking offices and the Ocala loan production
office.  Other  expenses  increased  $231,000,  or 19.0% to $1.4 million for the
first nine months of 2000  compared to $1.2 million for the first nine months of
1999. This increase is primarily attributed to the additional operating expenses
of the Pinellas  County and Broward  County  banking  offices and the Ocala loan
production office and the supporting operations.  Specific operational expenses,
which  increased,  were  communications,  travel,  stationery and supplies,  and
postage and courier expenses.

A benefit for income taxes of $686,000 was recognized for the nine-month  period
ended  September  30, 2000 as compared to a benefit for income taxes of $723,000
for the same  period in 1999.  These  benefits  for income  taxes  represent  an
estimated effective annual tax rate of approximately 38%.

                                       9
<PAGE>

FINANCIAL CONDITION

Total assets at September  30, 2000 were $331.4  million,  an increase of $113.2
million or 51.9%,  from $218.1  million at December  31,  1999.  The increase in
total assets  primarily  resulted from the  investment of new deposit growth and
other borrowed funds in loans and investments. Federal Funds sold decreased $4.6
million or 23.3% to $15.2  million at  September  30,  2000 as compared to $19.9
million at December 31, 1999.  This  decrease  represents  the use of short-term
reserves  for  funding of loan  growth.  Investment  securities  increased  $8.8
million or 30.9% to $37.3 million from $28.5  million at December 31, 1999.  The
increase in investment securities reflects investment of the proceeds of deposit
growth in excess of loan growth for this period.

Total loans increased  $103.3 million,  or 65.6%, to $260.9 million at September
30, 2000,  from $157.6 million at December 31, 1999. The increase in total loans
was funded by increases in  depository  accounts.  The allowance for loan losses
increased  $1.5 million,  or 80.9% during the nine months of 2000.  The increase
resulted  from  recoveries  of  previously  charged-off  loans  of  $71,000  and
additional provisions of $877,000,  during the nine-month period ended September
30, 2000,  partially  offset by $154,000 in charge-offs.  The allowance for loan
losses as a percent of total loans was 1.18% at  December  31, 1999 and 1.28% at
September 30, 2000.  Management  believes that such allowance for loan losses is
sufficient to cover estimated losses in the Bank's loan portfolio.

Deposits increased $108.8 million,  or 68.4%, to $267.9 million at September 30,
2000 from $159.1  million at December 31, 1999.  The increase in total  deposits
resulted  from an  increase  of $4.6  million or 20.6% in  non-interest  bearing
deposits,  an increase of $1.5 million or 13.5% in  interest-bearing  demand, an
increase of $5.8 million or 14.9% in savings  deposits,  an increase of $655,000
or 41.1% in money market  deposits and an increase of $96.3 million or 112.9% in
time  deposits.  Time  deposits  often  fluctuate  in response to interest  rate
changes and can vary rather  significantly on a quarterly basis. The increase in
time deposits resulted primarily from an increase in brokered deposits, together
with an increase in time deposits  issued  through the Bank's  Internet  banking
activities.

Shareholders' equity decreased by $1.3 million to $38.0 million at September 30,
2000,  from $39.2  million at December 31, 1999.  This decrease is primarily the
result of operating  losses from the opening of the Broward  County and Pinellas
County banking offices and the Ocala loan production office, and the purchase of
106,000 shares of treasury stock at a cost of $648,000.

Non-accrual  loans increased $1.5 million to $2.7 million at September 30, 2000,
compared to $1.1  million at December 31,  1999.  The increase is primarily  the
result of two additional loans being changed from accrual to non-accrual  status
during the first nine months of 2000.

LIQUIDITY

The Company,  through its  subsidiary,  the Bank, has  traditionally  maintained
levels of liquidity above levels required by regulatory authorities.  The Bank's
operational needs, demand for loan disbursements, and savings withdrawals can be
met by loan principal and interest payments received,  new deposits,  and excess
liquid  assets.   Significant  loan  demand,   deposit   withdrawal,   increased
delinquencies  and increased  real estate  acquired in settlement of loans could
alter this  condition.  Management  does not foresee any liquidity  problems for
2000.

                                       10
<PAGE>

Liquidity and Sources of Capital

Liquidity is the Company's ability to meet all deposit withdrawals  immediately,
while also  providing for the credit needs of customers.  The September 30, 2000
financial  statements  evidence a satisfactory  liquidity position as total cash
and cash  equivalents  amounted  to $25.6  million,  representing  7.7% of total
assets.  Investment securities amounted to $37.3 million,  representing 11.3% of
total assets.  These  securities  provide a secondary  source of liquidity since
they can be converted  into cash in a timely  manner.  The Company's  ability to
maintain  and expand its  deposit  base and  borrowing  capabilities  are also a
source of liquidity.  For the nine-month  period ended September 30, 2000, total
deposits  increased from $159.1 million at December 31, 1999 to $267.9  million,
representing  an increase of 68.4%.  There can be no assurance  that the Company
will be able to maintain this level of growth. The Company's  management closely
monitors  and  maintains  appropriate  levels of  interest  earning  assets  and
interest bearing liabilities so that maturities of assets are such that adequate
funds are provided to meet customer  withdrawals  and loan demand.  There are no
trends,  demands,  commitments,  events or uncertainties that will result in, or
are  reasonably  likely to result  in, the  Company's  liquidity  increasing  or
decreasing in any material way.

Management is committed to maintaining  capital at a level sufficient to protect
depositors,  provide for reasonable growth, and fully comply with all regulatory
requirements. Management's strategy to achieve this goal is to retain sufficient
earnings while providing a reasonable return on equity.

The table below  illustrates the Bank's  regulatory  capital ratios at September
30, 2000:

                                                                   Minimum
                                                September 30,    Regulatory
Bank                                                2000         Requirement
----
                                              ----------------------------------

              Tier 1 Capital                        9.92 %          4.00 %
                                                    ======          ======

              Total risk-based capital ratio       11.17 %          8.00 %
                                                   =======          ======

              Leverage ratio                        8.83 %          4.00 %
                                                    ======          ======


                                       11
<PAGE>
CAUTIONARY STATEMENT RELATING TO FORWARD LOOKING STATEMENTS

The foregoing Management's Discussion and Analysis, as well as other portions of
the Quarterly Report on Form 10-Q, contains various "forward looking statements"
within the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended,  which represent
the Company's expectations or beliefs concerning future events,  including,  but
not limited to, statements  regarding growth in sales of the Company's products,
profit  margins and the  sufficiency  of the Company's  cash flow for its future
liquidity and capital  resource  needs.  These  forward-looking  statements  are
further qualified by important factors that could cause actual results to differ
materially from those in the forward-looking statements, including those factors
discussed in the Company's filings with the Securities and Exchange  Commission.
The  Company  does not assume any  obligation  to update  such  forward  looking
statements.

Item 3.  Qualitative and Quantitative Disclosures About Market Risk

         The Company's  financial  performance  is subject to risk from interest
rate fluctuations. This interest rate risk arises due to differences between the
amount of interest-earning assets and the amount of interest-earning liabilities
subject  to  repricing  over a  specified  period  and the  amount  of change in
individual  interest  rates.  In the  current  interest  rate  environment,  the
liquidity and maturity  structure of the Company's  assets and  liabilities  are
important to the maintenance of acceptable performance levels. A decreasing rate
environment  negatively impacts earnings as the Company's  rate-sensitive assets
generally reprice faster than its rate-sensitive liabilities.  Conversely, in an
increasing   rate   environment,   earnings  are   positively   impacted.   This
asset/liability  mismatch  in  pricing  is  referred  to as a gap  ratio  and is
measured as rate sensitive  assets divided by rate sensitive  liabilities  for a
defined time period.  A gap ratio of 1.00 means that assets and  liabilities are
perfectly matched as to repricing. Management has specified gap ratio guidelines
for a one year time  horizon  of  between  .80 and 1.20  years for the Bank.  At
September 30, 2000, the Company had cumulative gap ratios of approximately  1.50
for the three month time period and .71 for the one-year period ending September
30, 2001. Thus, over the next  three-month  period,  rate-sensitive  assets will
reprice faster than rate-sensitive liabilities, and for the following nine-month
period,  rate  sensitive  liabilities  will reprice  faster than  rate-sensitive
assets.

Varying interest rate environments can create  unexpected  changes in prepayment
levels of  assets  and  liabilities,  which are not  reflected  in the  interest
sensitivity analysis.  Prepayments may have significant effects on the Company's
net interest  margin.  Because of these  factors and in a static test,  interest
sensitivity  gap reports may not provide a complete  assessment of the Company's
exposure to changes in interest rates. Management utilizes computerized interest
rate simulation  analysis to determine the Company's  interest rate sensitivity.
The Company is in a liability  sensitive  gap position  for the first year,  and
then moves into a matched position through the five-year period. Overall, due to
the  factors  cited,  current  simulations  results  indicate a  relatively  low
sensitivity to parallel shifts in interest rates. A liability  sensitive company
will generally  benefit from a falling  interest rate environment as the cost of
interest-bearing  liabilities  falls faster than the yields on  interest-bearing
assets,  thus  creating a widening of the net interest  margin.  Conversely,  an
asset sensitive  company will benefit from a rising interest rate environment as
the yields on earning  assets  rise  faster  than the costs of  interest-bearing
liabilities.  Management  also  evaluates  economic  conditions,  the pattern of
market  interest  rates and  competition  to determine the  appropriate  mix and
repricing  characteristics  of assets  and  liabilities  required  to  produce a
targeted net interest margin.

         In addition to the gap analysis,  management uses rate shock simulation
to measure the rate sensitivity of its balance sheet. Rate shock simulation is a
modeling  technique  used to  estimate  the  impact of  changes  in rates on the
Company's net interest  margin.  The Company  measures its interest rate risk by
estimating the changes in net interest income resulting from  instantaneous  and
sustained  parallel  shifts in interest  rates of plus or minus 200 basis points
over a period of twelve months.  The Company's most recent rate shock simulation
analysis,  which was performed as of June 30, 2000,  indicates  that a 200 basis
point  increase in rates would cause an increase in net interest  income of $1.5
million  over  the next  twelve-month  period.  Conversely,  a 200  basis  point
decrease in rates would cause a decrease in net interest  income of $2.2 million
over a  twelve-month  period.  Variances  in the amount of net  interest  income

                                       12
<PAGE>

resulting  from a rate increase as compared to a rate decrease are attributed to
the  repricing  term of the assets and  liabilities.  Adjustable  rate loans and
certain  other assets are  immediately  impacted by a rate change.  Other longer
term  liabilities  such as  certificates of deposits would not reprice until the
next  maturity  date.  The  result  is a  timing  difference  in  the  repricing
opportunity which affects the amount of additional or decreased  interest income
or interest expense resulting from the interest rate movement.

         This  simulation  is also based on  management's  assumption  as to the
effect of interest rate changes on assets and liabilities and assumes a parallel
shift of the yield curve. It also includes certain  assumptions about the future
pricing of loans and deposits in response to changes in interest rates. Further,
it assumes  that  delinquency  rates  would not change as a result of changes in
interest  rates  although  there can be no assurance that this will be the case.
While this  simulation  is a useful  measure  of the  Company's  sensitivity  to
changing  rates, it is not a forecast of the future results and is based on many
assumptions that if changed,  could cause a different  outcome.  In addition,  a
change in U.S. Treasury rates in the designated amounts  accompanied by a change
in the shape of the  Treasury  yield curve would cause  significantly  different
changes to net interest income than indicated above.

         At  September  30,  2000,  the  Company  was  not  engaged  in  trading
activities.

         During the second and third quarters of 2000, the Company  entered into
various interest rate swaps to help manage the Company's  interest  sensitivity.
Such contracts are indexed to the London Interbank  Offered Rate ("LIBOR").  The
interest  rate risk  factor in these  contracts  is  considered  in the  overall
interest management strategy and the Company's interest risk management program.
The income or  expense  associated  with  these  contracts  is  reflected  as an
adjustment to interest expense,  and results in an adjustment of the rate on the
liabilities  with which the contracts are  associated.  Changes in the estimated
fair value of these  contracts  are not  reflected in the  financial  statements
unless  realized.  At  September  30,  2000,  the  estimated  fair  value of the
Company's outstanding interest rate swaps indicated $210,000 in unrealized gains
and $395,000 in  unrealized  losses.  For the three and nine month periods ended
September  30,  2000  and  1999,  there  were no  realized  gains or  losses  on
terminated interest rate swaps.

Part II.  Other Information

Item 1.  Legal Proceedings

         None

Item 2.  Changes in Securities

         No disclosure required.

Item 3.  Defaults Upon Senior Securities

         No disclosure required.

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

         No disclosure required.

Item 5.  Other Information

         No disclosure required.

                                       13
<PAGE>

Item 6.  Exhibits and Reports on Form 8-K

(a)      Exhibits.  The following exhibit is filed with this Report.

              Exhibit No.                   Description

27.1     Financial Data Schedule (for SEC use only)

(b)      Reports on Form 8-K.        No report on Form 8-K was filed during the
                                     quarter ended September 30, 2000.


                                       14
<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.

                                                    Florida Banks, Inc.


Date:  November 14, 2000                   By:   /s/ Charles E. Hughes, Jr.
                                                --------------------------------
                                                    Charles E. Hughes, Jr.
                                                    President and
                                                    Chief Executive Officer


Date:  November 14, 2000                   By:   /s/ T. Edwin Stinson, Jr.
                                                --------------------------------
                                                    T. Edwin Stinson, Jr.
                                                    Chief Financial Officer