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)    JULY 31, 2000
                                                          ---------------


                              COASTAL BANCORP, INC.
                              ---------------------
               (Exact name of registrant as specified in charter)


          TEXAS                         0-24526               76-0428727
(State or other jurisdiction     (Commission File Number)          (IRS Employer
     of  incorporation)                                   Identification  No.)







                                                 
5718 WESTHEIMER, SUITE 600, HOUSTON, TEXAS                    77057
- --------------------------------------------------  ---------------
(Address of Principal executive offices)                 (Zip Code)


Registrant's telephone number including area code    (713) 435-5000
                                                    ---------------




(Former  name  or  former  address,  if  changed since last report)          Not
                                                                             ---
applicable
     -----



ITEM  5.          OTHER  EVENTS.
- --------          --------------

     On July 31, 2000 Coastal Bancorp, Inc. ("Coastal") announced that the Board
of  Directors  has  authorized  the  repurchase  of  up to 500,000 shares of the
outstanding shares of common stock through an open-market repurchase program and
privately  negotiated  repurchases,  if  any,  from  time  to  time  when deemed
appropriate  by  the  Chief  Executive  Officer  and  Chief Financial Officer of
Coastal.  The  timing  and  volume of the repurchase transactions will depend on
market  conditions.

Coastal through its wholly-owned subsidiary, Coastal Banc Holding Company, Inc.,
owns  100% of the voting stock of the Bank, a Texas-chartered state savings bank
headquartered  in  Houston.

ITEM  7.          FINANCIAL  STATEMENTS,  PRO  FORMA  FINANCIAL  INFORMATION AND
- --------          --------------------------------------------------------------
EXHIBITS.
- ---------

     (a)     Financial  Statements
             ---------------------

               No  financial  statements  are  required.

     (b)     Pro  Forma  Financial  Information
             ----------------------------------

               No  pro  forma  financial  information  is  required.

     (c)     Exhibits
             --------

               No.          Description
               ---          -----------
               99          Press  Release,  dated  July  31,  2000





     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  BANCORP,  INC.


Date:  August  14,  2000


by:  /s/  Catherine  N.  Wylie
     Sr.  Executive  Vice  President/
     Chief  Financial  Officer






                              COASTAL BANCORP, INC.




                                   EXHIBIT 99


               PRESS RELEASE OF THE REGISTRANT DATED JULY 31, 2000





     NEWS  RELEASE

                              FOR IMMEDIATE RELEASE

   COASTAL BANCORP, INC. ANNOUNCES AUTHORITY FOR A FIFTH COMMON STOCK REPURCHASE
                                      PLAN

          HOUSTON  (July  31,  2000)  -  Coastal  Bancorp,  Inc.  (NASDAQ: CBSA)
("Coastal")  announced  today  that  the  Board  of Directors has authorized the
repurchase  of  up  to  500,000 shares of the outstanding shares of common stock
through  an open-market repurchase program and privately negotiated repurchases,
if any, from time to time when deemed appropriate by the Chief Executive Officer
and Chief Financial Officer of Coastal.  The timing and volume of the repurchase
transactions  will  depend  on  market  conditions.
     At  June  30, 2000, Coastal Bancorp, Inc. had total assets of $3.1 billion,
deposits  of  $1.6  billion,  preferred  stock (Series A) of Coastal Banc ssb of
$28.8  million,  Series A Cumulative Preferred Stock of $27.5 million and common
stockholders'  equity  of  $101.2  million.
     Coastal  Bancorp,  Inc.  owns, through its wholly-owned subsidiary, Coastal
Banc Holding Company, Inc., 100 percent of the voting stock of Coastal Banc ssb,
a  Texas-chartered  FDIC  insured,  state savings bank headquartered in Houston.
Coastal  Banc  ssb  operates  50 branch offices in metropolitan Houston, Austin,
Corpus Christi, the Rio Grande Valley and small cities in the southeast quadrant
of Texas.  You can visit the company's web site at www.coastalbanc.com (which is
not  a  part  of  this  press  release).
     "Safe  Harbor" Statement under the Private Securities Litigation Reform Act
of  1995:  The  statements  contained  in  this release which are not historical
facts  contain forward looking information with respect to plans, projections or
future performance of the company, the occurrence of which involve certain risks
and  uncertainties  detailed  in  the  company's filings with the Securities and
Exchange  Commission.

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