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    <div>&#160;</div>
    <div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>UNITED
        STATES</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
        AND EXCHANGE COMMISSION</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Washington,
        D.C. 20549</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman"><strong>FORM
        8-K</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CURRENT
        REPORT </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Pursuant
        to Section 13 or 15(d) of The Securities Exchange Act of
        1934</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
        of
        Report (Date of earliest event reported): </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>June
        23, 2006</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>COASTAL
        BANCSHARES ACQUISITION CORP.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
        name of registrant as specified in its charter)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div align="left">
        <table border="0" cellpadding="0" cellspacing="0" width="100%">

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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Delaware</strong></font></div>
              </td>
              <td valign="top" width="34%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>000-51155</strong></font></div>
              </td>
              <td valign="top" width="33%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>20-1191778</strong></font></div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="33%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(State
                  or other jurisdiction<br>of incorporation)</font></div>
              </td>
              <td valign="top" width="34%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Commission<br>File
                  Number)</font></div>
              </td>
              <td valign="top" width="33%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(IRS
                  Employer</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Identification
                  No.)</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div align="center">
        <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

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              <td width="50%">&#160;

                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>9821
                  Katy Freeway, Suite 500<br></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Houston,
                  Texas</strong></font></div>
              </td>
              <td valign="bottom" width="50%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;<strong><font size="2">77024</font></strong></div>
              </td>
            </tr>
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                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;<font size="2">(Address
                  of principal executive
                  offices)</font></div>
              </td>
              <td width="50%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Zip
                  Code)</font></div>
              </td>
            </tr>

        </table>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Registrant&#8217;s
        telephone number, including area code: </font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(713)
        827-2104</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Former
        name or former address, if changed since last report)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Check
        the
        appropriate box below if the Form 8-K filing is intended to simultaneously
        satisfy the filing obligation of the registrant under any of the following
        provisions (</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>see
        </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">General
        Instruction A.2. below):</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
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            <tr valign="top" style="line-height: 1.25;">
              <td align="left" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">o</font></td>
              <td align="left">
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Written
                  communications pursuant to Rule 425 under the Securities Act (17
                  CFR
                  230.425)</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
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            <tr valign="top" style="line-height: 1.25;">
              <td align="left" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">o</font></td>
              <td align="left">
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Soliciting
                  material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
                  240.14a-12)</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
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            <tr valign="top" style="line-height: 1.25;">
              <td align="left" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">o</font></td>
              <td align="left">
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
                  communications pursuant to Rule 14d-2(b) under the Exchange Act
                  </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(17
                  CFR 240.14d-2(b))</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1.25;">
              <td align="left" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">o</font></td>
              <td align="left">
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
                  communications pursuant to Rule 13e-4(c) under the Exchange Act
                  </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(17
                  CFR 240.13e-4(c))</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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          <div style="WIDTH: 100%; TEXT-ALIGN: center">
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        4.02<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Non-Reliance
        on Previously Issued Financial Statements or a Related Audit Report or Completed
        Interim Review.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        connection with the preparation of Amendment No. 1 to the Proxy Statement
        related to the Agreement and Plan of Merger, dated as of April 5, 2006, by
        and
        among Coastal Bancshares Acquisition Corp., a Delaware corporation (the
&#8220;Company&#8221;) and its wholly-owned subsidiary, Coastal Merger Corp., a Texas
        corporation, and Intercontinental Bank Shares Corporation, a Texas corporation,
        the Company, in consultation with its independent registered accounting firm,
        Hein&#160;&amp; Associates LLP (&#8220;Hein&#8221;), determined that it needed to reclassify
        certain amounts in its financial statements to report the warrants issued
        as
        part of the units in the Company&#8217;s initial public offering as a liability. This
        issue arose as a result of a comment received from the Securities and Exchange
        Commission in connection with the preparation of the Registration Statement
        for
        another targeted acquisition company similar to the Company and Hein based
        its
        conclusions upon&#160;recent interpretations of the accounting for warrants
        issued as part of units under Emerging Issues Task Force (&#8220;EITF&#8221;) </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">No.
        00-19, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>&#8220;Accounting
        for Derivative Financial Instruments Indexed to, and Potentially Settled
        in, a
        Company&#8217;s Own Stock&#8221; </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(&#8220;EITF
        No. 00-19&#8221;)</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
        </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under
        EITF, the fair value of the warrants issued as part of the Units sold in
        the
        Company&#8217;s initial public offering should be reported as a liability. The warrant
        agreement provides for the Company to register the shares underlying the
        warrants and is silent as to if a penalty is to be incurred in the absence
        of
        the Company&#8217;s ability to deliver registered shares to the warrant holders upon
        warrant exercise. Under EITF No. 00-19, registration of the common stock
        underlying the warrants is not within the Company&#8217;s control. As a result, the
        Company must assume that it could be required to settle the warrants on a
        net-cash basis, thereby necessitating the treatment of the potential settlement
        obligation as a liability. Further, EITF No. 00-19, requires the Company
        to
        record the potential settlement obligation at each reporting date using the
        current estimated fair value of the warrants, with any changes being recorded
        through its statement of operations. The potential settlement obligation
        will
        continue to be reported as a liability until such time as the warrants are
        exercised, expire, or the Company is otherwise able to modify the registration
        requirements in the warrant agreement to remove the provisions which require
        this treatment. The fair value of the warrant liability at February 14 and
        18,
        2005 (the dates of issuance), March 31, 2005, June 30, 2005, September 30,
        2005,
        and December 31, 2005 was $7,176,000, $8,721,600, $5,299,200, $6,624,000,
        and
        $4,747,200, respectively. The fair value of the warrants was determined by
        the
        trading value of the securities on the last day of each period. Amounts reported
        as warrant liability income in the Company&#8217;s statements of operations resulting
        from the change in valuation of the warrant liability was $0 and $2,428,800
        for
        the fiscal years ended December&#160;31, 2004 and 2005, respectively. The
        Company had previously issued financial statements which did not present
        the
        warrant liability. Accordingly, the financial statements contained within
        the
        Company&#8217;s Form 10-QSB for the period ended March 31, 2006, Form 10-KSB for the
        fiscal year ended December 31, 2005, Form 10-QSB for the period ended September
        30, 2005, Form 10-QSB for the period ended June 30, 2005 and Form 10-QSB
        for the
        period ended March 31, 2005 should no longer be relied upon.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">After
        discussions with management and members of the Board of Directors of the
        Company, the Company has determined to restate its financial statements for
        such
        periods. The restated consolidated financial statements will be included
        in the
        Company&#8217;s Form&#160;10-QSB for the period ended March&#160;31, 2006, and
        Form&#160;10-KSB for the period ended December&#160;31, 2005. The Company will
        file amended reports on Form&#160;10-QSB/A and Form&#160;10-KSB/A with respect
        to the restatement, concurrent with the filing of this Current Report on
        Form
        8-K. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Company
        management has discussed the matters disclosed in this Current Report on
        Form&#160;8-K with its independent registered public accounting firm,
        Hein&#160;&amp; Associates, LLP.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Signatures</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">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 hereunto
        duly authorized.</font></div>
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              <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: "><strong>COASTAL
                BANCSHARES ACQUISITION CORP.</strong></font></td>
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              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">Date:
                June 23, 2006</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">By:&#160;&#160;</font></td>
              <td>&#160;</td>
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                <hr style="COLOR: black" align="left" noshade size="2" width="80%"><font size="2">Name:</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 63pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cary
                M. Grossman</font></td>
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              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">Title:<font id="TAB2" style="COLOR: black; LETTER-SPACING: 63pt" size="3">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chief
                Executive Officer</font></font></td>
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{"company-data": {"conformed-name": "Coastal Bancshares Acquisition Corp.", "cik": "0001300335", "assigned-sic": "6021", "irs-number": "000000000", "state-of-incorporation": "TX", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-51155", "film-number": "06923116"}, "business-address": {"street1": "9821 KATY FREEWAY, SUITE 500", "city": "HOUSTON", "state": "TX", "zip": "77024", "phone": "713-827-2104"}, "mail-address": {"street1": "9821 KATY FREEWAY, SUITE 500", "city": "HOUSTON", "state": "TX", "zip": "77024"}}
UNITED
        STATES
SECURITIES
        AND EXCHANGE COMMISSION
Washington,
        D.C. 20549
FORM
        8-K
CURRENT
        REPORT
Pursuant
        to Section 13 or 15(d) of The Securities Exchange Act of
        1934
Date
        of
        Report (Date of earliest event reported):
June
        23, 2006
COASTAL
        BANCSHARES ACQUISITION CORP.
(Exact
        name of registrant as specified in its charter)
Delaware
000-51155
20-1191778
(State
                  or other jurisdiction
of incorporation)
(Commission
File
                  Number)
(IRS
                  Employer
Identification
                  No.)
9821
                  Katy Freeway, Suite 500
Houston,
                  Texas
77024
(Address
                  of principal executive
                  offices)
(Zip
                  Code)
Registrant's
        telephone number, including area code:
(713)
        827-2104
(Former
        name or former address, if changed since last report)
Check
        the
        appropriate box below if the Form 8-K filing is intended to simultaneously
        satisfy the filing obligation of the registrant under any of the following
        provisions (
see
General
        Instruction A.2. below):
o
Written
                  communications pursuant to Rule 425 under the Securities Act (17
                  CFR
                  230.425)
o
Soliciting
                  material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
                  240.14a-12)
o
Pre-commencement
                  communications pursuant to Rule 14d-2(b) under the Exchange Act
(17
                  CFR 240.14d-2(b))
o
Pre-commencement
                  communications pursuant to Rule 13e-4(c) under the Exchange Act
(17
                  CFR 240.13e-4(c))
Item
        4.02
Non-Reliance
        on Previously Issued Financial Statements or a Related Audit Report or Completed
        Interim Review.
In
        connection with the preparation of Amendment No. 1 to the Proxy Statement
        related to the Agreement and Plan of Merger, dated as of April 5, 2006, by
        and
        among Coastal Bancshares Acquisition Corp., a Delaware corporation (the
"Company") and its wholly-owned subsidiary, Coastal Merger Corp., a Texas
        corporation, and Intercontinental Bank Shares Corporation, a Texas corporation,
        the Company, in consultation with its independent registered accounting firm,
        Hein & Associates LLP ("Hein"), determined that it needed to reclassify
        certain amounts in its financial statements to report the warrants issued
        as
        part of the units in the Company's initial public offering as a liability. This
        issue arose as a result of a comment received from the Securities and Exchange
        Commission in connection with the preparation of the Registration Statement
        for
        another targeted acquisition company similar to the Company and Hein based
        its
        conclusions upon recent interpretations of the accounting for warrants
        issued as part of units under Emerging Issues Task Force ("EITF")
No.
        00-19,
"Accounting
        for Derivative Financial Instruments Indexed to, and Potentially Settled
        in, a
        Company's Own Stock"
("EITF
        No. 00-19")
.
Under
        EITF, the fair value of the warrants issued as part of the Units sold in
        the
        Company's initial public offering should be reported as a liability. The warrant
        agreement provides for the Company to register the shares underlying the
        warrants and is silent as to if a penalty is to be incurred in the absence
        of
        the Company's ability to deliver registered shares to the warrant holders upon
        warrant exercise. Under EITF No. 00-19, registration of the common stock
        underlying the warrants is not within the Company's control. As a result, the
        Company must assume that it could be required to settle the warrants on a
        net-cash basis, thereby necessitating the treatment of the potential settlement
        obligation as a liability. Further, EITF No. 00-19, requires the Company
        to
        record the potential settlement obligation at each reporting date using the
        current estimated fair value of the warrants, with any changes being recorded
        through its statement of operations. The potential settlement obligation
        will
        continue to be reported as a liability until such time as the warrants are
        exercised, expire, or the Company is otherwise able to modify the registration
        requirements in the warrant agreement to remove the provisions which require
        this treatment. The fair value of the warrant liability at February 14 and
        18,
        2005 (the dates of issuance), March 31, 2005, June 30, 2005, September 30,
        2005,
        and December 31, 2005 was $7,176,000, $8,721,600, $5,299,200, $6,624,000,
        and
        $4,747,200, respectively. The fair value of the warrants was determined by
        the
        trading value of the securities on the last day of each period. Amounts reported
        as warrant liability income in the Company's statements of operations resulting
        from the change in valuation of the warrant liability was $0 and $2,428,800
        for
        the fiscal years ended December 31, 2004 and 2005, respectively. The
        Company had previously issued financial statements which did not present
        the
        warrant liability. Accordingly, the financial statements contained within
        the
        Company's Form 10-QSB for the period ended March 31, 2006, Form 10-KSB for the
        fiscal year ended December 31, 2005, Form 10-QSB for the period ended September
        30, 2005, Form 10-QSB for the period ended June 30, 2005 and Form 10-QSB
        for the
        period ended March 31, 2005 should no longer be relied upon.
2
After
        discussions with management and members of the Board of Directors of the
        Company, the Company has determined to restate its financial statements for
        such
        periods. The restated consolidated financial statements will be included
        in the
        Company's Form 10-QSB for the period ended March 31, 2006, and
        Form 10-KSB for the period ended December 31, 2005. The Company will
        file amended reports on Form 10-QSB/A and Form 10-KSB/A with respect
        to the restatement, concurrent with the filing of this Current Report on
        Form
        8-K.
Company
        management has discussed the matters disclosed in this Current Report on
        Form 8-K with its independent registered public accounting firm,
        Hein & Associates, LLP.
3
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 hereunto
        duly authorized.
COASTAL
                BANCSHARES ACQUISITION CORP.
Date:
                June 23, 2006
By:
Name:
Cary
                M. Grossman
Title:
Chief
                Executive Officer
4