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) MAY 5, 1997


                           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.)







                                                 

#8 GREENWAY PLAZA, SUITE 1500, HOUSTON, TEXAS                 77046
- --------------------------------------------------  ---------------
(Address of Principal executive offices)                 (Zip Code)


Registrant's telephone number including area code    (713) 623-2600
                                                    ---------------




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



ITEM  5.                    OTHER  EVENTS.

          On April 24, 1997, Coastal Bancorp, Inc. declared a cash dividend of
$.12  per  share  on  its  common  stock  for  the  first  quarter  of 1997 to
shareholders  of  record  on  May  15,  1997,  payable  on June 15, 1997.  The
dividend  declared  is an increase of twenty percent (20%) from dividends paid
previously.

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  April  28,  1997






     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.


/s/  Catherine  N.  Wylie                    Date:    May  5,  1997
by:    Catherine  N.  Wylie,  Executive  Vice  President
     and  Chief  Financial  Officer






























                            COASTAL BANCORP, INC.




                                  EXHIBIT 99


             PRESS RELEASE OF THE REGISTRANT DATED APRIL 28, 1997










                               [GRAPHIC  OMITED]




COASTAL  BANCORP,  INC.
8  Greenway  Plaza,  Suite  1500
Houston,  Texas  77046

For  More  Information,  Contact

Manuel  J.  Mehos,  CEO
Catherine  N.  Wylie,  CFO
(713)  623-2600
(713)  966-4660  (Fax)
email:    cwylie@coastalbanc.com

     NEWS  RELEASE

                            FOR IMMEDIATE RELEASE

                            COASTAL BANCORP, INC.
             FIRST QUARTER CASH DIVIDENDS INCREASED BY 20 PERCENT

HOUSTON  (April  28,  1997)  -  Coastal Bancorp, Inc. (NASDAQ: CBSA) announced
today  that  on  April  24, 1997, its Board of Directors voted to increase the
first  quarter  of  1997 common stock dividend by 20% over the prior quarter. 
The $.12 cash dividend will be paid on June 15, 1997 to shareholders of record
as  of May 15, 1997.  Future dividend payments will be determined by the Board
of  Directors  based  on  the  Company's  results  of  operations,  financial
condition,  general  economic  conditions  and  other  factors.
     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, state savings bank headquartered in Houston.  Coastal
Banc  ssb  operates 36 branch offices in metropolitan Houston, Corpus Christi,
Austin  and  small  cities  in  central  and  south Texas.  At March 31, 1997,
Coastal  Bancorp,  Inc.  had  assets  of  approximately  $2.9  billion.
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