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 March 31, 2001

                                       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) 332-7770
              (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 MARCH 31, 2001
PER SHARE                                                5,709,004



<PAGE>
Item 1. Financial Statements
FLORIDA BANKS, INC.
CONDENSED BALANCE SHEETS  (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
                                                                                                  March 31,             December 31,
                                                                                                    2001                   2000
<S>                                                                                            <C>                    <C>
ASSETS

CASH AND DUE FROM BANKS                                                                        $  18,091,433          $  12,730,964
FEDERAL FUNDS SOLD AND REPURCHASE AGREEMENTS PURCHASED                                            31,546,000             30,957,000
                                                                                               -------------          -------------
           Total cash and cash equivalents                                                        49,637,433             43,687,964

INVESTMENT SECURITIES:
  Available for sale, at fair value (cost $34,547,252  and $32,039,307
    at March 31, 2001 and December 31, 2000)                                                      34,897,033             32,061,545
  Held to maturity, at cost (fair value $4,327,279 and $3,486,595
    at March 31, 2001 and December 31, 2000)                                                       4,298,750              3,428,558
  Other investments                                                                                1,402,700              1,266,000

LOANS:
  Commercial real estate                                                                         155,006,224            158,653,667
  Commercial                                                                                     117,931,816            102,391,117
  Residential mortgage                                                                            11,110,949              9,795,665
  Consumer                                                                                        15,283,472             13,036,447
  Credit card and other loans                                                                      1,317,043              1,747,145
                                                                                                   ---------              ---------
           Total loans                                                                           300,649,504            285,624,041
  Allowance for loan losses                                                                       (3,697,764)            (3,510,677)
  Net deferred loan fees                                                                            (128,048)               (98,421)
                                                                                                    --------                -------
           Net loans                                                                             296,823,692            282,014,943

PREMISES AND EQUIPMENT, NET                                                                        3,295,778              3,300,170

ACCRUED INTEREST RECEIVABLE                                                                        1,979,778              1,897,303

DEFERRED INCOME TAXES, NET                                                                         4,446,388              4,605,153

DERIVATIVE INSTRUMENTS                                                                               459,122                   --

OTHER ASSETS                                                                                         678,805                535,408
                                                                                                     -------                -------
TOTAL ASSETS                                                                                   $ 397,919,479          $ 372,797,044
                                                                                               =============          =============
LIABILITIES AND SHAREHOLDERS' EQUITY

DEPOSITS:
  Noninterest-bearing demand                                                                   $  42,169,723          $  41,965,131
  Interest-bearing demand                                                                         15,266,963             12,259,897
  Regular savings                                                                                 48,450,958             46,121,007
  Money market accounts                                                                            3,898,453              2,795,661
  Time $100,000 and over                                                                         124,616,205            116,824,179
  Other time                                                                                      80,497,704             85,273,577
                                                                                                  ----------             ----------
          Total deposits                                                                         314,900,006            305,239,452

REPURCHASE AGREEMENTS SOLD                                                                        34,331,763             18,812,378

OTHER BORROWED FUNDS                                                                               7,220,745              7,223,402

ACCRUED INTEREST PAYABLE                                                                           2,015,939              2,206,379

ACCOUNTS PAYABLE AND ACCRUED EXPENSES                                                                537,784                758,994
                                                                                                     -------                -------
          Total liabilities                                                                      359,006,237            334,240,605
                                                                                                 -----------            -----------
SHAREHOLDERS' EQUITY:
  Common stock, $.01 par value; 30,000,000 shares authorized;                                         59,501                 59,298
    5,950,104 and 5,929,751 shares issued, respectively
  Additional paid-in capital                                                                      46,842,121             46,750,329
  Accumulated deficit (deficit of $8,434,037
     eliminated upon quasi-reorganization on December 31, 1995)                                   (6,699,662)            (6,760,222)
  Treasury stock, 241,100 shares at cost                                                          (1,506,836)            (1,506,836)
  Accumulated other comprehensive income, net of tax                                                 218,118                 13,870
                                                                                                     -------                 ------
          Total shareholders' equity                                                              38,913,242             38,556,439
                                                                                                  ----------             ----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                                     $ 397,919,479          $ 372,797,044
                                                                                               =============          =============
      See notes to financial statements.
</TABLE>
                                       2
<PAGE>

FLORIDA BANKS, INC.
<TABLE>

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


                                                     Three Month Period Ended
                                                             March 31,
                                                --------------------------------
                                                      2001               2000
                                                -----------------  -------------
<S>                                               <C>               <C>
INTEREST INCOME:
  Loans, including fees                           $ 6,766,915       $ 3,708,671
  Investment securities                               697,829           555,507
  Federal funds sold and repurchase agreements        291,968           215,833
                                                      -------           -------
          Total interest income                     7,756,712         4,480,011
                                                    ---------         ---------

INTEREST EXPENSE:
  Deposits                                          3,945,698         2,103,493
  Repurchase agreements                               391,659           171,559
  Borrowed funds                                       96,157            99,475
                                                       ------            ------

          Total interest expense                    4,433,514         2,374,527
                                                    ---------         ---------

NET INTEREST INCOME                                 3,323,198         2,105,484

PROVISION FOR LOAN LOSSES                             239,384           370,128
                                                      -------           -------

NET INTEREST INCOME AFTER
   PROVISION FOR LOAN LOSSES                        3,083,814         1,735,356
                                                    ---------         ---------

NONINTEREST INCOME:
  Service fees                                        224,247           124,114
  Loss on sale of securities                                             (6,225)
  Other noninterest income                             94,672            32,687
                                                       ------            ------

                                                      318,919           150,576
                                                      -------           -------

NONINTEREST EXPENSES:
  Salaries and benefits                             2,161,337         1,685,341
  Occupancy and equipment                             436,485           353,676
  Data processing                                     163,269            75,965
  Other                                               545,612           447,416
                                                      -------           -------

                                                    3,306,703         2,562,398
                                                    ---------         ---------

INCOME (LOSS) BEFORE PROVISION (BENEFIT)
   FOR INCOME TAXES                                    96,030          (676,466)

PROVISION (BENEFIT) FOR INCOME TAXES                   35,470          (259,688)
                                                       ------          --------

NET INCOME (LOSS)                                 $    60,560       $  (416,778)
                                                  ===========       ===========

EARNINGS (LOSS)  PER SHARE:
  Basic                                           $      0.01       $     (0.07)
                                                  ===========       ===========
  Diluted                                         $      0.01       $     (0.07)
                                                  ===========       ===========

        See notes to financial statements.
</TABLE>


                                       3
<PAGE>
FLORIDA BANKS, INC.
CONDENSED STATEMENTS OF SHAREHOLDERS' EQUITY  (Unaudited)
--------------------------------------------------------------------------------
<TABLE>


                                                                                                                     Accumulated
                                                                                                                       Other
                                                                 Common Stock             Additional                 Comprehensive
                                                            --------------------------     Paid-In     Accumulated   Income (loss)
                                                              Shares        Par Value      Capital       Deficit       Net of Tax

<S>              <C>                                         <C>          <C>            <C>           <C>            <C>
BALANCE, JANUARY 1, 2000                                     5,853,756    $    58,538    $46,383,936   ($5,680,069)   ($  668,706)
Comprehensive loss:
  Net loss                                                                                              (1,080,153)
  Unrealized gain on available for sale
     investment securities, net of tax of $411,821                                                                        682,576
      Comprehensive loss
  Issuance of common stock to Employee
    Stock Purchase Plan                                         75,995            760        366,393
  Purchase of treasury stock
                                                             ---------         ------     ----------    ---------          ------
BALANCE, JANUARY 1, 2001                                     5,929,751         59,298     46,750,329   (6,760,222)         13,870
Comprehensive income:
  Net Income                                                                                               60,560
  Unrealized gain on available for sale
     investment securities, net of tax of $125,184                                                                        204,248
      Comprehensive income
  Issuance of common stock to Employee
    Stock Purchase Plan                                         20,353            203         91,792
  Purchase of treasury stock
                                                             ---------    -----------    -----------    ----------    -----------
BALANCE, MARCH 31, 2001 (Unaudited)                          5,950,104    $    59,501    $46,842,121   ($6,699,662)   $   218,118
                                                             =========    ===========    ===========   ===========    ===========

        See notes to financial statements




                                                           Treasury
                                                             Stock         Total
BALANCE, JANUARY 1, 2000                                ($  858,844)   $39,234,855
Comprehensive loss:
  Net loss                                                              (1,080,153)
  Unrealized gain on available for sale
     investment securities, net of tax of $411,821                         682,576
                                                                           -------
      Comprehensive loss                                                  (397,577)
  Issuance of common stock to Employee
    Stock Purchase Plan                                                    367,153
  Purchase of treasury stock                               (647,992)      (647,992)
                                                        -----------     ----------
BALANCE, JANUARY 1, 2001                                 (1,506,836)    38,556,439
                                                         ==========     ==========
Comprehensive income:
  Net Income                                                                60,560
  Unrealized gain on available for sale
     investment securities, net of tax of $125,184                         204,248
                                                                           -------
      Comprehensive income                                                 264,808
  Issuance of common stock to Employee
    Stock Purchase Plan                                                     91,995
  Purchase of treasury stock                                      -              -
                                                        -----------    ------------
BALANCE, MARCH 31, 2001 (Unaudited)                     $(1,506,836)   $38,913,242

        See notes to financial statements
</TABLE>


                                       4
<PAGE>

FLORIDA BANKS, INC.
CONDENSED STATEMENTS OF CASH FLOWS  (Unaudited)
--------------------------------------------------------------------------------
<TABLE>

                                                                                       Three Month Period Ended
                                                                                                March 31,
                                                                                    ----------------------------------
OPERATING ACTIVITIES:                                                                     2001             2000
                                                                                    ----------------------------------

<S>                                                                             <C>                   <C>
  Net income (loss)                                                             $     60,560          $   (416,778)
  Adjustments to reconcile net income (loss) to net cash
    used in operating activities:
      Depreciation and amortization                                                  170,840               146,648
      Loss on disposition of furniture and equipment                                   6,577                                |
      Deferred income tax provision (benefit)                                         35,470              (259,688)
      Loss on sale of securities                                                                             6,225
      Amortization of premiums on investments, net                                   (79,347)              (10,566)
      Provision for loan losses                                                      239,384               370,128
      Increase in accrued interest receivable                                        (82,475)             (273,750)
      (Decrease) increase in accrued interest payable                               (190,440)              610,749
      Increase in other assets                                                      (602,519)              (10,302)
      Decrease in other liabilities                                                 (221,210)             (396,929)
                                                                                    --------              --------
           Net cash used in operating activities                                    (663,160)             (234,263)
                                                                                    --------              --------
INVESTING ACTIVITIES:
  Proceeds from sales, paydowns and maturities
    of investment securities:
    Available for sale                                                             1,829,730                                |
    Held to maturity                                                               2,579,079             3,396,509
  Purchases of investment securities:
    Available for sale                                                            (4,346,584)           (8,557,038)
    Held to maturity                                                              (3,361,015)           (2,024,555)
    Other investments                                                               (136,700)                               |
  Net increase in loans                                                          (15,048,133)          (34,713,574)
  Purchases of premises and equipment                                               (173,025)             (166,189)
                                                                                    --------              --------
           Net cash used in investing activities                                 (18,656,648)          (42,064,847)
                                                                                 -----------           -----------
FINANCING ACTIVITIES:
  Net increase in demand deposits,
    money market accounts and savings accounts                                     6,736,396             1,165,275
  Net increase in time deposits                                                    3,016,153            51,471,717
  Increase in repurchase agreements                                               15,519,385             2,957,255
  Decrease in borrowed funds                                                          (2,657)              (13,461)
  Purchase of treasury stock                                                                              (647,992)
  Proceeds from sale of common stock                                                                       161,497
           Net cash provided by financing activities                              25,269,277            55,094,291
                                                                                  ----------            ----------
NET INCREASE IN CASH AND
  CASH EQUIVALENTS                                                                 5,949,469            12,795,181
CASH AND CASH EQUIVALENTS:
  Beginning of period                                                             43,687,964            25,958,628
                                                                                  ----------            ----------
  End of period                                                                 $ 49,637,433          $ 38,753,809
                                                                                ============          ============
SUPPLEMENTAL DISCLOSURES
  OF CASH FLOW INFORMATION:
    Cash paid for interest                                                      $  4,623,954          $  1,763,778
                                                                                ============          ============
NONCASH FINANCING ACTIVITIES:
Proceeds from demand deposits used to purchase shares of
     common stock under Employee Stock Purchase Plan                            $     91,995          $
                                                                                ============          ============
See notes to financial statements
</TABLE>

                                       5
<PAGE>

FLORIDA BANKS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTH PERIODS ENDED
MARCH 31, 2001 AND 2000 (UNAUDITED)
--------------------------------------------------------------------------------
1.    BASIS OF PRESENTATION

      FloridaBanks,  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 acquiror.  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 Annual Report to Shareholders incorporated by reference into
      the  Company's  Form  10-K for the  year  ended  December  31,  2000.  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-month  period
      ended March 31, 2001, 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.

                                            Three Month Period Ended
                                                    March 31,
                                         --------------------------------
                                              2001             2000
                                         ---------------  ---------------
Weighted average number of common
  shares outstanding - Basic               5,691,365         5,692,689

Incremental shares from the assumed
  conversion of stock options                  2,817              --
                                               -----

Total - Diluted                            5,694,182         5,692,689
                                           =========         =========




                                       6
<PAGE>

FLORIDA BANKS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTH PERIODS ENDED
MARCH 31, 2001 AND 2000 (UNAUDITED)  (Continued)
--------------------------------------------------------------------------------
      The  incremental  shares from the assumed  conversion of stock options for
      the period ended March 31, 2001 were  determined  using the treasury stock
      method, under which the assumed proceeds were equal to (1) the amount that
      the Company would receive upon exercise of the options plus (2) the amount
      of tax  benefit  that would be  credited  to  additional  paid-in  capital
      assuming  exercise  of the  options.  The  assumed  proceeds  are  used to
      purchase  outstanding  common shares at the Company's average market value
      for the period.

      The exercise prices of stock options outstanding in the three-month period
      ended March 31, 2000 was above the fair market  value of the stock  during
      that  period,  therefore  the options  are  considered  anti-dilutive  for
      purposes of calculating the loss per share.



3.    DERIVATIVE INSTRUMENTS

      The Company  adopted  Statement of  Accounting  Standards  (SFAS) No. 133,
      Accounting for Derivative Instruments and Hedging Activities,  as amended,
      on January 1, 2001. This statement requires all derivative  instruments to
      be recorded on the balance sheet at fair value.

      The following  instruments  qualify as  derivatives as defined by SFAS No.
      133:

                                                            March 31, 2001
                                                  ------------------------------
                                                   Contract/Notional       Fair
                                                        Amount             Value

Interest rate swap agreements                      $10,000,000       $   337,344
Foreign Currency Swap Agreements                   $ 2,000,000       $   121,778

      Interest rate swap  agreements  consist of two separate  agreements  which
      qualify for the fair value method of hedge accounting under the "short-cut
      method" based on the guidelines established by SFAS No. 133. Additionally,
      the Company  entered into a foreign  currency  swap  agreement  during the
      first  quarter of 2001.  This swap  agreement  does not  qualify for hedge
      accounting under SFAS No. 133. Accordingly,  all changes in the fair value
      of the foreign  currency swap  agreement will be reflected in the earnings
      of the Company.  The Company  recognized a gain of $1,778 during the first
      quarter of 2001 as a result of  changes  in the fair value of the  foreign
      currency agreement.

      On January 1, 2001,  the Company  recorded an increase to total  assets of
      $794,221 with a  corresponding  increase in liabilities as a result of the
      adoption  of SFAS No.  133.  As the fair  value  hedge  is  assumed  to be
      completely  effective  under the  "short-cut  method",  hedging  gains and
      losses  netted to zero at January 1, 2001 and the adoption of SFAS No. 133
      had no effect on the earnings of the Company.



                                       7
<PAGE>

      At March 31, 2001, the  accompanying  financial  statements  contained the
      following  adjustments to account for the Company's  derivative  financial
      instruments  shown above in conformity  with SFAS No. 133: loans decreased
      $120,000,  time  deposits  $100,000  and over  increased  $337,344,  other
      noninterest  income  increased  $1,778,  and  derivative   instruments  of
      $459,122 were recorded on the balance sheet as assets.


                                       8
<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 March 31, 2001 Compared to Three Months Ended March 31, 2000

The Company's net income for the first quarter of 2001 was $61,000,  compared to
a loss of ($417,000)  for the  three-month  period ending March 31, 2000.  Basic
income per share for the first  quarter of 2001 was $.01  compared to basic loss
per share of $.07 for the first quarter of 2000.  The increase in net income can
be primarily attributed to increased net interest income.

The  increase in net interest  income of $1.2 million or 57.8%,  to $3.3 million
for the first  quarter of 2001  compared to $2.1  million  the first  quarter in
2000,  consists of an increase in interest income of $3.3 million, or 73.1%, and
an increase in  interest  expense of $2.1  million,  or 86.7%.  The  increase in
interest  income in the first  quarter of 2001 is primarily  attributable  to an
increase of $3.1 million in interest and fees on loans resulting from the growth
in the loan portfolio.

The  provision  for loan  losses  charged to  operations  decreased  $131,000 to
$239,000  for the first  quarter of 2001 from  $370,000 in the first  quarter of
2000.  This  decrease  reflects  a slowing  in the  growth of the  overall  loan
portfolio.

Non-interest  income  increased  111.8% or $168,000  to  $319,000  for the three
months  ended March 31, 2001 from  $151,000 for the three months ended March 31,
2000. The increase in non-interest income primarily resulted from an increase in
service fees to $224,000 at March 31, 2001 from $124,000 at March 31, 2000.  The
increase in service fees resulted primarily from an increase in deposits.

Non-interest  expense  increased  $745,000  or  29.1%  to $3.3  million  for the
three-month  period  ended  March 31,  2001  compared  to $2.6  million  for the
three-month  period ended March 31, 2000. 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 $476,000
to $2.2 million for the first  quarter of 2001  compared to $1.7 million for the
first quarter of 2000. This increase is primarily the result of additional staff
associated  with the  overall  growth  of the  Company's  business,  and the new
banking office in Ocala,  which opened in March, 2000. The increase in occupancy
and equipment expense of $83,000,  or 23.1%,  resulted primarily from additional
leased  space  for the  Company,  and the new  banking  office  in  Ocala.  Data
processing expenses increased $87,000 or 114.9% to $163,000 for the three months
ended March 31,  2001 as  compared to $76,000 for the same period in 2000.  This
increase resulted primarily from the additional  processing  expenses associated
with the  increased  volume  of  loans  and  deposit  accounts.  Other  expenses
increased  $98,000,  or 21.9% to $546,000 for the first quarter of 2001 compared
to $447,000 for the first quarter of 2000. This increase is primarily attributed
to the  additional  operating  expenses  of the Ocala  banking  office,  and the
supporting  operations  related to the overall  growth of the Company.  Specific
operational expenses which increased were communications and postage and courier
expenses.

A provision  for income  taxes of $35,000  was  recognized  for the  three-month
period  ended  March 31,  2001 as  compared  to a benefit  for  income  taxes of
($260,000)  for the same  period  ended March 31,  2000.  These  provisions  and
benefits for income taxes  represent an estimated  effective  annual tax rate of
38%.


                                       9
<PAGE>

FINANCIAL CONDITION

Total assets at March 31, 2001 were $397.9 million, an increase of $24.9 million
or 6.7%,  from $372.8 million at December 31, 2000. The increase in total assets
primarily  resulted from the investment of new deposit growth and other borrowed
funds in loans and investment securities.  Federal Funds sold increased $589,000
or 1.9% to $31.5  million  at March 31,  2001 as  compared  to $31.0  million at
December 31, 2000. These assets represent short-term reserves for future funding
of loan growth.  Investment  securities increased $3.9 million or 10.7% to $40.7
million  from $36.8  million at December 31,  2000.  The increase in  investment
securities  reflects investment of the proceeds of deposit and borrowings growth
during the first quarter in excess of loan growth.

Total loans  increased  $15.0  million,  or 5.3%, to $300.6 million at March 31,
2001,  from $285.6 million at December 31, 2000. The increase in total loans was
funded by  increases  in  depository  accounts.  The  allowance  for loan losses
increased  $187,000 or 5.3% for the first quarter of 2001. The increase resulted
from net charge-offs of loans of $52,000 plus additional provisions of $239,000,
during the three month  period  ended March 31,  2001.  The  allowance  for loan
losses as a percent of total loans was 1.23% at March 31, 2001 and  December 31,
2000.  Management  believes that such allowance for loan losses is sufficient to
cover estimated losses in the Bank's loan portfolio.

Deposits  increased  $9.7 million,  or 3.2%, to $314.9 million at March 31, 2001
from $305.2  million at  December  31,  2000.  The  increase  in total  deposits
resulted  from an  increase of $205,000  or 0.5% in  non-interest  deposits,  an
increase of $3.0  million or 24.5% in  interest-bearing  demand,  an increase of
$2.3  million or 5.1% in savings,  an increase of $1.1 million or 39.5% in money
market  accounts,  and an  increase  of $7.8  million  or 6.7% in time  deposits
$100,000 and over,  partially offset by a decrease of $4.8 million,  or 5.6%, in
other 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  increased by $357,000 to $38.9 million at March 31, 2001,
from $38.6  million at December 31, 2000.  This increase is primarily the result
of an increase in other  comprehensive  income related to an unrealized  gain in
the  Company's  bond  portfolio,  combined  with net income  for the  quarter of
$61,000.

Non-accrual  loans  increased  $2.2  million to $3.7  million at March 31, 2001,
compared to $1.5  million at December  31,  2000.  The increase is the result of
three additional  loans being changed from accrual to non-accrual  status during
the first quarter of 2001.

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
2001.



                                       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 March 31,  2001
financial  statements  evidence a satisfactory  liquidity position as total cash
and cash  equivalents  amounted to $49.6  million,  representing  12.5% of total
assets.  Investment securities amounted to $40.7 million,  representing 10.2% 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  three-month  period ended March 31, 2001,  total
deposits  increased from $305.2 million at December 31, 2000 to $314.9  million,
representing  an increase of 3.2%.  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.

The Company's Board and executive officers are committed to maintaining  capital
at a level sufficient to protect depositors,  provide for reasonable growth, and
fully comply with all regulatory requirements.

The table below  illustrates the Bank's  regulatory  capital ratios at March 31,
2001:

                                         March 31,                 Regulatory
Bank                                        2001                  Requirement
----                                ---------------------     ------------------

Tier 1 Capital                              9.82%                   4.00%
                                            ====                    ====

Total risk-based capital ratio             10.99%                   8.00%
                                           =====                    ====

Leverage ratio                              8.52%                   4.00%
                                            ====                    ====



                                       11
<PAGE>

CAUTIONARY STATEMENT RELATING TO FORWARD LOOKING STATEMENTS

The foregoing  Management's  Discussion and Analysis  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.

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 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 targeted gap ratio guidelines for a one
year time horizon of between .80 and 1.20 for the Bank.  At March 31, 2001,  the
Company had cumulative gap ratios of approximately 1.12 for the three month time
period and .75 for the one year period  ending  March 31, 2002.  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,  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,  performed  as of March 31,  2001,  indicates  that a 200 basis  point
increase in rates would  cause an  increase in net  interest  income of $598,000
over the next  twelve-month  period.  Conversely,  a 200 basis point decrease in
rates  would  cause  a  decrease  in net  interest  income  of  $775,000  over a
twelve-month period.

                                       12
<PAGE>

          This simulation is 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 March 31, 2001, the Company was not engaged in trading activities.

          The Company  enters into interest  rate swap  agreements to manage its
exposure to changes in  interest  rates and to convert the fixed rate on certain
brokered  certificates  of deposit to a floating  rate in order to more  closely
match interest rate sensitivity  between  selected assets and  liabilities.  The
Company does not use derivative financial  instruments for speculative purposes.
As is  customary  for these types of  instruments,  the Company does not require
collateral or other security from other parties to these  instruments.  By their
nature  all  such  instruments  involve  risk,  including  the  credit  risk  of
nonperformance by  counterparties.  However,  at March 31, 2001, in management's
opinion there was no significant risk of loss in the event of  nonperformance of
the counterparties to these financial instruments.

Part II.  Other Information

Item 1.  Legal Proceedings

         No disclosure required.

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.

Item 6.  Exhibits and Reports on Form 8-K

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

                  None.

(b)      Reports on Form 8-K.    No  report  on  Form  8-K  was filed during the
                                 quarter ended March 31, 2001.


                                       13
<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:  May 11, 2001                   By:/s/ Charles E. Hughes, Jr.
                                         --------------------------
                                      Charles E. Hughes, Jr.
                                      President and Chief Executive Officer


Date:  May 11, 2001                   By: /s/ T. Edwin Stinson, Jr.
                                          -------------------------
                                      T. Edwin Stinson, Jr.
                                      Chief Financial Officer