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 June 30, 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 JUNE 29, 2001
PER SHARE                                                    5,709,004


<PAGE>
<TABLE>

Item 1. Financial Statements
FLORIDA BANKS, INC.

CONDENSED BALANCE SHEETS  (Unaudited)
------------------------------------------------------------------------------------------------------------------------------------


                                                                                                      June 30,          December 31,
                                                                                                        2001                2000
ASSETS

<S>                                                                                               <C>                 <C>
CASH AND DUE FROM BANKS                                                                           $  18,839,207       $  12,730,964
FEDERAL FUNDS SOLD AND REPURCHASE AGREEMENTS PURCHASED                                               50,747,000          30,957,000
                                                                                                     ----------          ----------
           Total cash and cash equivalents                                                           69,586,207          43,687,964

INVESTMENT SECURITIES:
  Available for sale, at fair value (cost $33,684,088  and $32,039,307
    at June 30, 2001 and December 31, 2000)                                                          34,068,873          32,061,545
  Held to maturity, at cost (fair value $4,460,118 and $3,486,595
    at June 30, 2001 and December 31, 2000)                                                           4,315,117           3,428,558
  Other investments                                                                                   1,402,700           1,266,000
                                                                                                      ---------           ---------
           Total Investment Securities                                                               39,786,690          36,756,103

LOANS:
  Commercial real estate                                                                            172,082,422         158,653,667
  Commercial                                                                                        126,429,879         102,391,117
  Residential mortgage                                                                               14,085,321           9,795,665
  Consumer                                                                                           17,635,998          13,036,447
  Credit card and other loans                                                                         1,649,699           1,747,145
                                                                                                      ---------           ---------
           Total loans                                                                              331,883,319         285,624,041
  Allowance for loan losses                                                                          (4,000,898)         (3,510,677)
  Net deferred loan fees                                                                               (173,695)            (98,421)
                                                                                                       --------             -------
           Net loans                                                                                327,708,726         282,014,943

PREMISES AND EQUIPMENT, NET                                                                           3,360,304           3,300,170

ACCRUED INTEREST RECEIVABLE                                                                           1,981,917           1,897,303

DEFERRED INCOME TAXES, NET                                                                            4,393,762           4,605,153

DERIVATIVE INSTRUMENTS                                                                                  398,198

OTHER ASSETS                                                                                            555,804             535,408
                                                                                                        -------             -------
TOTAL ASSETS                                                                                      $ 447,771,608       $ 372,797,044
                                                                                                  =============       =============

LIABILITIES AND SHAREHOLDERS' EQUITY

DEPOSITS:
  Noninterest-bearing demand                                                                      $  45,068,303       $  41,965,131
  Interest-bearing demand                                                                            17,998,133          12,259,897
  Regular savings                                                                                    55,042,716          46,121,007
  Money market accounts                                                                               4,601,680           2,795,661
  Time $100,000 and over                                                                            143,256,920         116,824,179
  Other time                                                                                         85,663,613          85,273,577
                                                                                                     ----------          ----------
          Total deposits                                                                            351,631,365         305,239,452

REPURCHASE AGREEMENTS SOLD                                                                           40,656,501          18,812,378

OTHER BORROWED FUNDS                                                                                  7,241,017           7,223,402

ACCRUED INTEREST PAYABLE                                                                              1,764,296           2,206,379

ACCOUNTS PAYABLE AND ACCRUED EXPENSES                                                                   789,418             758,994
                                                                                                        -------             -------

          Total liabilities                                                                         402,082,597         334,240,605
                                                                                                    -----------         -----------

SHAREHOLDERS' EQUITY:
   Series B Preferred Stock, $68.00 par value, 1,000,000 shares authorized, 100,401                   6,827,268
     and 0 shares issued and outstanding, respectively
  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                                                                         46,705,771          46,750,329
  Accumulated deficit (deficit of $8,434,037
     eliminated upon quasi-reorganization on December 31, 1995)                                      (6,636,683)         (6,760,222)
  Treasury stock, 241,100 shares at cost                                                             (1,506,836)         (1,506,836)
  Accumulated other comprehensive income, net of tax                                                    239,990              13,870
                                                                                                        -------              ------

          Total shareholders' equity                                                                 45,689,011          38,556,439
                                                                                                     ----------          ----------

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                                        $ 447,771,608       $ 372,797,044
                                                                                                  =============       =============
      See notes to condensed financial statements.
</TABLE>




                                       2
<PAGE>
<TABLE>

FLORIDA BANKS, INC.

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

                                                              Three-Month Period Ended        Six-Month Period Ended
                                                                      June 30,                       June 30,
                                                            ------------------------------ -------------------------------

                                                                2001            2000           2001             2000
                                                            --------------  -------------- --------------   --------------
<S>                                                            <C>             <C>           <C>               <C>
INTEREST INCOME:
  Loans, including fees                                        $6,643,186      $4,744,894    $13,410,101       $8,453,565
  Investment securities                                           655,886         633,698      1,353,715        1,189,205
  Federal funds sold                                              239,248         367,929        531,216          583,762
                                                                  -------         -------        -------          -------
          Total interest income                                 7,538,320       5,746,521     15,295,032       10,226,532
                                                                =========       =========     ==========       ==========

INTEREST EXPENSE:
  Deposits                                                      3,756,127       2,893,003      7,701,825        4,996,496
  Repurchase agreements                                           349,675         212,142        741,334          383,701
  Borrowed funds                                                   92,477          96,983        188,634          196,458
                                                                   ------          ------        -------          -------

          Total interest expense                                4,198,279       3,202,128      8,631,793        5,576,655
                                                                ---------       ---------      ---------        ---------

NET INTEREST INCOME                                             3,340,041       2,544,393      6,663,239        4,649,877

PROVISION FOR LOAN LOSSES                                         384,029         339,328        623,413          709,456
                                                                  -------         -------        -------          -------

NET INTEREST INCOME AFTER
   PROVISION FOR LOAN LOSSES                                    2,956,012       2,205,065      6,039,826        3,940,421
                                                                ---------       ---------      ---------        ---------

NONINTEREST INCOME:
  Service fees                                                    291,333         141,114        515,580          265,228
  Loss on sale of available for sale investment                      (12)         (2,725)           (12)          (8,950)
securities
  Other noninterest income                                        112,111          63,620        206,783           96,307
                                                                  -------          ------        -------           ------

                                                                  403,432         202,009        722,351          352,585
                                                                  -------         -------        -------          -------

NONINTEREST EXPENSES:
  Salaries and benefits                                         2,003,631       1,766,043      4,164,968        3,451,384
  Occupancy and equipment                                         426,887         377,699        863,372          731,375
  Data processing                                                 168,178         115,998        331,447          191,963
  Other                                                           658,274         531,499      1,203,886          978,915
                                                                  -------         -------      ---------          -------

                                                                3,256,970       2,791,239      6,563,673        5,353,637
                                                                ---------       ---------      ---------        ---------

INCOME (LOSS) BEFORE PROVISION (BENEFIT)
  FOR INCOME TAXES                                                102,474       (384,165)        198,504       (1,060,631)

PROVISION (BENEFIT) FOR INCOME TAXES                               39,495       (139,427)         74,965         (399,115)
                                                                   ------       --------          ------         --------

NET INCOME (LOSS)                                                 $62,979      $(244,738)       $123,539        $(661,516)
                                                                  =======      =========        ========        =========


INCOME (LOSS) PER COMMON SHARE:
  Basic                                                             $0.01         $(0.04)          $0.02           $(0.12)
                                                                    =====         ======           =====           ======
  Diluted                                                           $0.01         $(0.04)          $0.02           $(0.12)
                                                                    =====         ======           =====           ======

See notes to condensed financial statements.
</TABLE>



                                       3
<PAGE>

<TABLE>


                                                              Preferred Stock              Common Stock                Additional
                                                            -------------------------------------------------------    Paid-In
                                                                 Shares       Par Value       Shares      Par Value    Capital

<S>                                                                                          <C>           <C>         <C>
BALANCE, JANUARY 1, 2000                                                                     5,853,756     $58,538     $46,383,936

Comprehensive loss:
  Net loss
  Unrealized gain on available for sale
     investment securities, net of tax of $411,821
      Comprehensive loss
  Issuance of common stock to Employee
    Stock Purchase Plan                                                                         75,995         760         366,393
  Purchase of treasury stock                               --------       --------            --------       --------     --------

BALANCE,  DECEMBER 31, 2000                                                                  5,929,751      59,298      46,750,329

Comprehensive income:
  Net Income
  Unrealized gain on available for sale
     investment securities, net of tax of
     $    125,184
      Comprehensive income
  Issuance of common stock to Employee
    Stock Purchase Plan                                                                         20,353         203          91,792
  Issuance of Series B Preferred Stock                           100,401    $6,827,268                                    (136,350)
  Purchase of treasury stock
                                                                 =======    ==========        =========    =======     ===========
BALANCE, JUNE 30, 2001                                           100,401    $6,827,268        5,950,104    $59,501     $46,705,711






                                                                                        Accumulated
                                                                                          Other
                                                                                       Comprehensive
                                                        Accumulated      Treasury       Income (loss)
                                                          Deficit          Stock         Net of Tax           Total

BALANCE, JANUARY 1, 2000                                ($5,680,069)     ($858,844)      ($668,706)      $ 39,234,855

Comprehensive loss:
  Net loss                                               (1,080,153)                                       (1,080,153)
  Unrealized gain on available for sale
     investment securities, net of tax of
      $    411,821                                                                         682,576            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,  DECEMBER 31, 2000                              (6,760,222)    (1,506,836)         13,870         38,556,439

Comprehensive income:
  Net Income                                                123,539                                           123,539
  Unrealized gain on available for sale
     investment securities, net of tax of
     $    125,184                                                                          226,120            226,120
                                                                                                              -------
      Comprehensive income                                                                                    349,659
  Issuance of common stock to Employee
    Stock Purchase Plan                                                                                        91,995
  Issuance of Series B Preferred Stock                                                                      6,690,918
  Purchase of treasury stock                                                                                        -
                                                        ===========    ===========       =========       ============
BALANCE, JUNE 30, 2001                                  $(6,636,683)   $(1,506,836)      $ 239,990       $ 45,689,011
</TABLE>



                                       4
<PAGE>
<TABLE>
FLORIDA BANKS, INC.
CONDENSED STATEMENTS OF CASH FLOWS  (Unaudited)
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                        Six-Month Period Ended
                                                                                                             June 30,
                                                                                              --------------------------------------
OPERATING ACTIVITIES:                                                                                2001                     2000
                                                                                              --------------------------------------
<S>                                                                                           <C>                      <C>
  Net income (loss)                                                                           $    123,539             $   (661,516)
  Adjustments to reconcile net income (loss) to net cash
    provided by operating activities:
      Depreciation and amortization                                                                372,441                  305,175
      Loss on disposition of furniture and equipment                                                 6,577
      Deferred income tax provision (benefit)                                                       74,965                 (399,115)
      Loss on sale of securities                                                                     8,950
      Amortization of premiums on investments, net                                                (113,285)                 (64,716)
      Provision for loan losses                                                                    623,413                  709,456
      Loss on derivative instruments                                                                 4,620
      Increase in accrued interest receivable                                                      (84,614)                (514,146)
      (Decrease) increase in accrued interest payable                                             (442,083)                 893,908
      (Increase) decrease in other assets                                                          (20,396)                  48,983
      Increase (decrease) in other liabilities                                                      30,424                  (72,709)
                                                                                                    ------                  -------
           Net cash provided by operating activities                                               575,601                  254,270
                                                                                                   -------                  -------
INVESTING ACTIVITIES:
  Proceeds from sales, paydowns and maturities
    of investment securities:
    Available for sale                                                                           6,314,181                6,182,146
    Held to maturity                                                                             2,579,079
  Purchases of investment securities:
    Available for sale                                                                          (7,950,301)             (11,118,249)
    Held to maturity                                                                            (3,361,015)              (3,069,472)
    Other investments                                                                             (136,700)                (166,850)
  Net increase in loans                                                                        (46,432,802)             (65,280,846)
  Purchases of premises and equipment                                                             (439,152)                (673,331)
                                                                                                  --------                 --------
           Net cash used in investing activities                                               (49,426,710)             (74,126,602)
                                                                                               -----------              -----------
FINANCING ACTIVITIES:
  Net increase in demand deposits,
    money market accounts and savings accounts                                                  19,661,131                6,164,966
  Net increase in time deposits                                                                 26,535,565               76,566,922
  Increase in repurchase agreements                                                             21,844,123                4,229,420
  Increase (decrease) in borrowed funds                                                             17,615                  (29,395)
  Purchase of treasury stock                                                                      (647,992)
  Proceeds from sale of Series B preferred stock                                                 6,690,918
                                                                                                 ---------                ---------
           Net cash provided by financing activities                                            74,749,352               86,283,921
                                                                                                ----------               ----------
NET INCREASE IN CASH AND
  CASH EQUIVALENTS                                                                              25,898,243               12,411,589
CASH AND CASH EQUIVALENTS:
  Beginning of period                                                                           43,687,964               25,958,628
                                                                                                ----------               ----------
  End of period                                                                               $ 69,586,207             $ 38,370,217
                                                                                              ============             ============
SUPPLEMENTAL DISCLOSURES
  OF CASH FLOW INFORMATION:
    Cash paid for interest                                                                    $  9,073,876             $  4,772,436
NONCASH FINANCING ACTIVITIES:
Proceeds from demand deposits used to purchase shares of
     common stock under Employee Stock Purchase Plan                                          $     91,995             $    161,497
</TABLE>

                                       5
<PAGE>

FLORIDA BANKS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTH PERIODS ENDED
JUNE 30, 2001 AND 2000 (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 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 and six-month
      periods ended June 30, 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  its   subsidiaries.   All  significant   intercompany   balances  and
      transactions have been eliminated in consolidation.

2.    EARNINGS PER COMMON 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           Six-Month Period Ended
                                                                             June 30,                          June 30,
                                                                  --------------------------------  --------------------------------
                                                                     2001               2000             2001             2000
                                                                  ---------------  ---------------  ---------------  ---------------
<S>                                                               <C>                <C>                <C>                <C>
Weighted average number of common
  shares outstanding - Basic                                      5,709,004          5,644,137          5,700,233          5,681,919

Incremental shares from the assumed
  conversion of stock options                                         2,093                  -              3,329                  -
                                                                      -----              -----              -----              -----
Total - Diluted                                                   5,711,097          5,644,137          5,703,562          5,681,919
                                                                  =========          =========          =========          =========
</TABLE>

                                       6
<PAGE>

FLORIDA BANKS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTH PERIODS ENDED
JUNE 30, 2001 AND 2000 (UNAUDITED)  (Continued)
--------------------------------------------------------------------------------

      The  incremental  shares from the assumed  conversion of stock options for
      the three and six-month  periods ended June 30, 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  and
      six-month  periods  ended June 30, 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:

                                                              June 30, 2001
                                                  ------------------------------
                                                   Contract/Notional       Fair
                                                        Amount             Value

Interest rate swap agreements                        $5,000,000       $  287,212
Foreign Currency Swap Agreements                     $2,000,000       $  110,986

      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, and a loss of $6,398 during the second 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 in 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>

4.    PREFERRED STOCK

      On June 29, 2001 the Company  issued  100,401 shares of Series B Preferred
      stock for $68.00 per share in a private placement.

      Conversion Rights

      Each  share of  preferred  stock is  convertible  into ten  shares  of the
      Company's  common  stock  at a  price  of  $6.80  per  share  (subject  to
      adjustment for stock splits,  stock dividends,  etc.). The preferred stock
      will be automatically converted to common stock upon the following events:
      1) change in control;  2) if the average  closing  price of the  Company's
      common  stock for any 30  consecutive  trading  day  period is at or above
      $8.00 per share; or 3) the consummation of an underwritten public offering
      at a price of $8.00 per share or greater of the Company's common stock.

      Dividends

      Compounding,  cumulative,  cash dividends accrue at seven percent annually
      and are payable quarterly in arrears.

      Liquidation Preference

      In the event of any liquidation,  dissolution or winding up of the affairs
      of the Company, the holders of Series B preferred stock at that time shall
      receive  $68.00  per share  plus an amount  equal to  accrued  and  unpaid
      dividends thereon through and including the date of distribution  prior to
      any distribution to holders of common stock. The liquidation preference at
      June 30, 2001 was $6,828,577.














                                       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 June 30, 2001 Compared to Three Months Ended June 30, 2000

The Company's net income for the second quarter of 2001 was $62,979, compared to
a loss of ($245,000)  for the  three-month  period  ending June 30, 2000.  Basic
income per share for the second  quarter of 2001 was $.01 compared to basic loss
per share of ($.04) for the second  quarter of 2000.  The increase in net income
can be primarily attributed to increased net interest income.

The  increase in net interest  income of $796,000 or 31.3%,  to $3.3 million for
the second  quarter of 2001 compared to $2.5 million the second quarter in 2000,
consists of an increase in interest  income of $1.8  million,  or 31.2%,  and an
increase in interest expense of $1.0 million, or 31.1%. The increase in interest
income in the second quarter of 2001 is primarily attributable to an increase of
$1.9 million in interest and fees on loans resulting from the growth in the loan
portfolio.  The increase in interest expense resulted primarily from an increase
of $863,000 in interest on deposits attributable to the growth in deposits.

The  provision  for loan  losses  charged  to  operations  increased  $45,000 to
$384,000 for the second  quarter of 2001 from $339,000 in the second  quarter of
2000. This increase reflects the growth of the overall loan portfolio.

Non-interest income increased 99.7% or $201,000 to $403,000 for the three months
ended June 30, 2001 from $202,000 for the three months ended June 30, 2000.  The
increase in non-interest  income primarily  resulted from an increase in service
fees of $150,000 to  $291,000 at June 30, 2001 from  $141,000 at June 30,  2000.
The increase in service fees resulted primarily from an increase in deposits.

Non-interest  expense  increased  $466,000  or  16.7%  to $3.3  million  for the
three-month  period  ended  June  30,  2001  compared  to $2.8  million  for the
three-month  period ended June 30, 2000.  The increase in  non-interest  expense
resulted  primarily  from  increases in salaries and benefits,  data  processing
expenses, and other expenses.  Salaries and benefits expenses increased $238,000
to $2.0 million for the second  quarter of 2001 compared to $1.8 million for the
second  quarter of 2000.  This  increase is primarily  the result of  additional
staff  associated  with the  overall  growth  of the  Company's  business.  Data
processing  expenses increased $52,000 or 45.0% to $168,000 for the three months
ended June 30, 2001 as compared  to $116,000  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 $127,000, or 23.9% to $658,000 for the second quarter of 2001 compared
to  $531,000  for the  second  quarter  of  2000.  This  increase  is  primarily
attributed to the expenses associated with supporting  operations related to the
overall growth of the Company.  Specific  operational  expenses which  increased
include postage and courier expenses, and accounting and legal expenses.

A provision  for income  taxes of $39,000  was  recognized  for the  three-month
period  ended  June 30,  2001 as  compared  to a  benefit  for  income  taxes of
($139,000)  for the same  period  ended  June 30,  2000.  These  provisions  and
benefits for income taxes  represent an estimated  effective  annual tax rate of
approximately 38%.

                                       9
<PAGE>

Six Months Ended June 30, 2001 Compared to Six Months Ended June 30, 2000

The Company's net income for the first half of 2001 was $124,000,  compared to a
loss of ($662,000) for the six-month  period ending June 30, 2000.  Basic income
per share for the first half of 2001 was $.02  compared  to basic loss per share
of  ($.12)  for the  first  half of 2000.  The  increase  in net  income  can be
primarily attributed to increased net interest income.

The  increase in net interest  income of $2.0 million or 43.3%,  to $6.7 million
for the first  half of 2001  compared  to $4.6  million  the first half in 2000,
consists of an increase in interest  income of $5.0  million,  or 49.6%,  and an
increase in interest expense of $3.0 million, or 54.8%. The increase in interest
income in the first half of 2001 is  primarily  attributable  to an  increase of
$5.0 million in interest and fees on loans resulting from the growth in the loan
portfolio.  The  increase  in  interest  expense  for the first  half of 2001 is
primarily  attributable  to an increase of $2.7  million in interest on deposits
resulting from the growth in deposits.

The  provision  for loan  losses  charged  to  operations  decreased  $86,000 to
$623,000  for the first  half of 2001 from  $709,000  in the first half of 2000.
This  decrease  reflects  a slowing  in the rate of growth of the  overall  loan
portfolio.

Non-interest  income increased 104.8% or $370,000 to $722,000 for the six months
ended June 30, 2001 from  $353,000 for the six months  ended June 30, 2000.  The
increase in non-interest  income primarily  resulted from an increase in service
fees of $250,000 to  $516,000 at June 30, 2001 from  $265,000 at June 30,  2000.
The increase in service fees  resulted  primarily  from an increase in deposits.
Other noninterest income increased $110,000 to $207,000 for the six months ended
June 30,  2001 from  $96,000  for the same  period in 2000.  This  increase  was
primarily   attributable   to  an  increase  in  ACH/EFT   (Automated   Clearing
House/Electronic Funds Transfer) activities.

Non-interest  expense  increased  $1.2  million or 22.6% to $6.6 million for the
six-month  period ended June 30, 2001 compared to $5.4 million for the six-month
period  ended June 30,  2000.  The  increase in  non-interest  expense  resulted
primarily from increases in salaries and benefits,  data  processing,  and other
expenses.  Salaries and benefits expenses increased $714,000 to $4.2 million for
the first half of 2001 compared to $3.5 million for the first half of 2000. This
increase is primarily the result of additional staff associated with the overall
growth of the Company's business. Data processing expenses increased $139,000 or
72.7% to $331,000 for the six months ended June 30, 2001 as compared to $192,000
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  $225,000,  or 23.0% to $1.2 million
for the first half of 2001 compared to $979,000 for the first half of 2000. This
increase is primarily  attributed  to the expenses  associated  with  supporting
operations  related to the overall growth of the Company.  Specific  operational
expenses  which  increased  included  postage  and  courier  expenses,   travel,
accounting and legal expenses and taxes and licenses.

A provision for income taxes of $75,000 was recognized for the six-month  period
ended June 30, 2001 as compared to a benefit for income taxes of ($399,000)  for
the same period ended June 30, 2000.  These  provisions  and benefits for income
taxes represent an estimated effective annual tax rate of approximately 38%.


                                       10
<PAGE>
FINANCIAL CONDITION

Total assets at June 30, 2001 were $447.8 million,  an increase of $75.0 million
or 20.1%, 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 $19.8 or
63.9% to $50.7 million at June 30, 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 $3.0 million or 8.25% to $39.8 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
second half in excess of loan growth.

Total loans  increased  $46.3 million,  or 16.2%,  to $331.9 million at June 30,
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  $490,000 or 14.0% for the first half of 2001.  The increase  resulted
from  net  charge-offs  of loans  of  $133,000  plus  additional  provisions  of
$623,000,  during the  six-month  period ended June 30, 2001.  The allowance for
loan  losses as a percent of total loans was 1.21% at June 30, 2001 and 1.23% at
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 $46.4 million,  or 15.2%, to $351.6 million at June 30, 2001
from $305.2  million at  December  31,  2000.  The  increase  in total  deposits
resulted from an increase of $3.1 million or 7.4% in non-interest  deposits,  an
increase of $5.7  million or 46.8% in  interest-bearing  demand,  an increase of
$8.9 million or 19.3% in savings,  an increase of $1.8 million or 64.6% in money
market accounts, an increase of $26.4 million or 22.6% in time deposits $100,000
and over,  and an increase of $390,000,  or 0.5%, 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.  Repurchase agreements
sold increased $21.8 million,  or 116.1%, to $40.7 million at June 30, 2001 from
$18.8 million at December 31, 2000.  This increase is primarily due to increased
use of these  instruments to help fund continued loan growth.  Accrued  interest
payable decreased  $442,000 or 20.0%, to $1.8 million at June 30, 2001 from $2.2
million at December 31, 2000.  This decrease is due to a combination of factors,
including a change in the mix of interest bearing liabilities,  with more growth
in  categories  which  pay  interest  monthly  or at  other  intervals  prior to
maturity, and a dramatic reduction in overall interest rates.

Shareholders'  equity  increased  by $7.1  million to $45.7  million at June 30,
2001,  from $38.6  million at December 31, 2000.  This increase is primarily the
result of the private  placement  of $6.8  million of Series B  Preferred  Stock
during the second  quarter,  combined  with an increase  in other  comprehensive
income  related  to an  unrealized  gain  in the  Company's  bond  portfolio  of
$226,000, and net income for the first half of 2001 of $124,000.

Non-accrual  loans  increased  $2.4  million to $3.9  million at June 30,  2001,
compared to $1.5 million at December 31, 2000. The increase  primarily  resulted
from  loans  outstanding  to three  customers  being  changed  from  accrual  to
non-accrual  status during the first half of 2001. These loans were reclassified
under the Bank's policy of  transferring  loans to non-accrual  status when they
become more than 90 days past due on either  principal or interest.  The Company
believes the specific  reserves  placed  against these loans are  adequate,  and
payment is being sought from secondary sources, such as the sale of collateral.

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
                                       11
<PAGE>

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.

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 June 30,  2001
financial  statements  evidence a satisfactory  liquidity position as total cash
and cash  equivalents  amounted to $69.6  million,  representing  15.5% of total
assets.  Investment  securities amounted to $39.8 million,  representing 8.9% 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  six-month  period  ended  June 30,  2001,  total
deposits  increased from $305.2 million at December 31, 2000 to $351.6  million,
or 15.2%.  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 June 30,
2001:


                                         June 30,                 Regulatory
Bank                                       2001                  Requirement
                                   ---------------------     -------------------

Tier 1 Capital                             9.86 %                   4.00 %

Total risk-based capital ratio            11.01 %                   8.00 %
                                          =====                     ====

Leverage ratio                             8.77 %                   4.00 %
                                           ====                     ====


                                       12
<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 June 30,  2001,  the
Company had a cumulative gap ratio of approximately  .78 for the one-year period
ending June 30, 2002.  While this is slightly  outside the targeted  range,  the
faster  repricing of  liabilities  is desirable in the falling rate  environment
which financial  markets have experienced so far in 2001. The Company is closely
monitoring the  situation,  and it should be able to bring the one-year gap back
into the targeted range in the near future.  At June 30, 2001, the Company had a
cumulative gap ratio of 1.36 for the  three-month  time period.  The Company has
not established  specific gap ratio  guidelines for the three-month time period.
Given these gap ratios, 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

                                       13
<PAGE>

analysis,  performed  as of June 30,  2001,  indicates  that a 200  basis  point
increase in rates would  cause an  increase in net  interest  income of $478,000
over the next  twelve-month  period.  Conversely,  a 200 basis point decrease in
rates  would  cause  a  decrease  in net  interest  income  of  $651,000  over a
twelve-month period.

     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 June 30, 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 June 30, 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

         At the annual meeting of the Company's  shareholders,  three items were
         submitted to a vote of the common shareholders:
(a)      Bruce J. Culpepper,  Charles E. Hughes,  Jr., W. Andrew Krusen, Jr. and
         David McIntosh were re-elected as directors of the Company,  to succeed
         themselves for a term of three years, expiring at the annual meeting of
         shareholders  in 2004.  Each of the  directors  received  a minimum  of
         5,087,142 votes to re-elect, or 98% of the shares voted at the meeting.
(b)      The  Company's  Amended and Restated  Incentive  Compensation  Plan was
         approved by the  shareholders,  with  4,739,384  shares,  or 93% of the
         shares  voted at the  meeting,  voting  in favor of the  Plan,  349,880
         shares voting against and 26,760 shares abstaining.

                                       14
<PAGE>

(c)      The shareholders ratified the Audit Committee's  engagement of Deloitte
         & Touche, LLP as the Company's independent auditors, with 5,108,614, or
         99% of the  shares  voted at the  meeting  voting for  approval,  3,160
         shares voting against and 4,250 shares abstaining.

Item 5.  Other Information

         No disclosure required.

Item 6.  Exhibits and Reports on Form 8-K

(a)      Exhibits.  No Exhibits were required to be filed with this Report.

(b)      Reports on Form 8-K. No report on Form 8-K was filed by the Company for
         the three months ended June 30, 2001.



                                   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:  August 10, 2001           By: _________________________________
                                 Charles E. Hughes, Jr.
                                 President and Chief Executive Officer


Date:  August 10, 2001           By: ___________________
                                 T. Edwin Stinson, Jr.
                                 Chief Financial Officer


                                       15