<PAGE 1>

                      UNITED STATES

            SECURITIES AND EXCHANGE COMMISSION

                 WASHINGTON, D.C.  20549

                        FORM 10-Q
(Mark One)

 X QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES    
EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 1995

Commission file number 0-10794

                STERLING WEST BANCORP               
(Exact name of registrant as specified in its charter)

         California                      95-3712404    
(State or other jurisdiction of       (I.R.S. Employer
incorporation or organization)      Identification No.)

3287 Wilshire Boulevard, Los Angeles, California    90010 (Address of
principal executive offices)     (Zip Code)

 (213) 384-4444 
(Registrant's telephone number, including area code)

Indicate by check 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        

 1,710,429 
(Number of shares of common stock outstanding November 10, 1995)     

This Form 10-Q contains 16 pages.

Exhibit Index: None




<PAGE>
<PAGE 2>
PART I: FINANCIAL INFORMATION
ITEM 1: FINANCIAL STATEMENTS
                  Sterling West Bancorp and Subsidiaries
                        CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
                                             September 30,  December 31,
                                                 1995          1994
                                             (Unaudited)                
<S>                                          <C>            <C>          
ASSETS
     Cash and cash equivalents               $ 28,960,000   $ 20,294,000
     Investment securities
       (market value of $7,640,000)
       in 1995 and $6,832,000 in 1994           7,627,000      6,974,000

     Loans Receivable, net                     68,887,000     89,462,000

     Fixed assets
       Land and building                          227,000        227,000
       Furniture and equipment                  2,917,000      2,635,000
       Leasehold improvements                   1,411,000      1,400,000
                                                4,555,000      4,262,000
       Less accumulated depreciation           (3,317,000)    (3,089,000)
                                                1,238,000      1,173,000

     Accrued interest receivable                  790,000        954,000
     Real estate held for sale                  6,437,000      7,808,000
     Other assets                                 839,000      1,504,000
     Assets of discontinued operations            845,000      4,322,000
          Total assets                       $115,623,000   $132,491,000

LIABILITIES
     Deposits
       Demand                                $ 31,923,000   $ 31,097,000
       Savings and NOW                         56,780,000     57,652,000
       Money market                             8,330,000     10,183,000
       Time deposits $100,000 or greater        3,878,000      3,505,000
       Other time deposits                      3,400,000      4,661,000
                                              104,311,000    107,098,000

     Notes payable                                200,000     11,900,000
     Other liabilities                          2,095,000      3,136,000
          Total liabilities                   106,606,000    122,134,000

STOCKHOLDERS' EQUITY
     Common stock - authorized 5,000,000
       shares without par value; issued
       and outstanding 1,710,429 shares
       at September 30, 1995 and
       December 31, 1994                        8,686,000      8,686,000
     Retained earnings                            331,000      1,671,000
                                                9,017,000     10,357,000
Total Liabilities and Stockholders Equity    $115,623,000   $132,491,000



See accompanying notes to consolidated financial statements.<PAGE>
<PAGE 3>
PART I: FINANCIAL INFORMATION
ITEM 1: FINANCIAL STATEMENTS
                                     
Sterling West Bancorp and Subsidiaries
                    CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (Unaudited)

</TABLE>
<TABLE>
<CAPTION>
                               For the three months ended    For the nine months ended
                                    September 30,            September 30,
                                   1995          1994           1995           1994   
<S>                           <C>            <C>
Interest income
     Loans                    $ 2,777,000  $ 2,862,000 $ 9,102,000 $ 8,334,000
     Federal funds sold           225,000      193,000     524,000     350,000
     Investment securities held
      to maturity                 132,000      114,000     379,000     339,000 
     Trading Securities               --         1,000         --       69,000
                                3,134,000    3,170,000  10,005,000   9,092,000

Interest expense
     Savings and NOW              672,000      592,000   1,986,000   1,256,000
     Money market                  30,000       57,000     107,000     171,000
     Time deposits $100,000
      or greater                   52,000      151,000     122,000     386,000 
     Other time deposits           35,000      153,000     120,000     234,000
     Notes Payable                288,000      369,000   1,081,000     877,000
                                1,077,000    1,322,000   3,416,000   2,924,000
          Net interest income   2,057,000    1,848,000   6,589,000   6,168,000
Provision for loan losses         486,000      150,000     686,000     175,000 
 
          Net interest income
           after provision for
           loan losses          1,571,000    1,698,000   5,903,000   5,993,000

Non-interest income
     Service charges on deposit
      accounts                     82,000       62,000     244,000     216,000
     Gain on sale of SBA loans     30,000          --      133,000      49,000
     Gain on sale of SBC assets 1,504,000          --    1,504,000         --
     Other                        118,000      165,000     409,000     411,000
                                1,734,000      227,000   2,290,000     676,000
Non-interest expense
     Salaries, wages and employee
      benefits                    929,000    1,095,000   3,215,000   3,366,000
     Occupancy                    211,000      212,000     622,000     720,000
     Furniture and equipment       92,000       57,000     264,000     175,000
     Real estate operations, net  608,000      130,000     880,000     540,000
     Other                        553,000      505,000   1,821,000   1,539,000
                                2,393,000    1,999,000   6,802,000   6,340,000
Income from continuing operations
   before income taxes            912,000      (74,000)  1,391,000     329,000 
Income tax provision              707,000      (40,000)    907,000     197,000 
  
Income from continuing operations 205,000      (34,000)    484,000     132,000
Loss from discontinued
   operations                  (1,390,000)    (112,000) (1,824,000) (1,532,000)
          NET INCOME (LOSS)   $(1,185,000)  $ (146,000) (1,340,000) (1,400,000)
                              ============  =========== ==========  ===========
Income (loss) per common share:
     From continuing operations $    0.12   $    (0.02)       0.28        0.08
     From discontinued operations   (0.81)       (0.07)      (1.07)      (0.90)
     Net income (loss) per share$   (0.69)  $    (0.09)      (0.79)      (0.82)
                              ============   =========== ==========    ======== 


See accompanying notes to consolidated financial statements.
<PAGE>
<PAGE 4>
PART I: FINANCIAL INFORMATION
ITEM 1: FINANCIAL STATEMENTS

                   Sterling West Bancorp and Subsidiaries

                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (Unaudited)

</TABLE>
<TABLE>
<CAPTION>
                                                For the three months ended
                                                    September 30,
                                                    1995           1994   
<S>                                            <C>          <C>
Cash flows from operating activities
    Net income (loss)                          $(1,340,000) $(1,400,000)
    Adjustments to reconcile net income (loss)
      to net cash provided by operating activities:
       Depreciation and amortization              227,000       220,000
       Provision for loan losses                  686,000       175,000
       Provision (benefit) for deferred taxes      514,000     (825,000)
       Decrease in trading securities, net            --      6,038,000
       Real estate valuation adjustments, net    1,219,000      953,000
       Decrease in interest receivable            164,000       (48,000)
       Decrease (increase) other assets            149,000    1,471,000
       Increase in other liabilities            (1,040,000)     837,000
       Decrease in assets of discontinued operations    3,259,000 (3,030,000)
          Total adjustments                      5,178,000    5,791,000

               Net cash provided by
                 operating activities            3,838,000   4,391,000

Cash flows from investing activities
    Proceeds from maturities of investment securities    1,672,000  2,761,000
    Purchases of investment securities          (2,324,000)  (2,062,000)
    Net (increase) decrease in loans receivable   20,286,000 (1,860,000)
    Proceeds from sale of real estate            1,160,000    4,211,000
    Payment on real estate owned                (1,405,000)     (1,047,000)
    Purchase of furniture and equipment            (74,000)    (154,000)

               Net cash provided by (used in)
                  investing activities          19,315,000    1,849,000

Cash flows from financing activities
    Net increase in demand deposits, savings
       and other money market accounts          (1,899,000)  16,167,000
    Net decrease in certificates of deposit       (888,000) (17,305,000)
    Net increase (decrease) in note payable to 
       financial institution                   (10,207,000)    (407,000)
    Proceeds from issuance of commercial paper         --           88,000
     Payments of maturing commercial paper             --       (1,041,000)  
     Payments on maturing promissory notes      (1,493,000)         --  

               Net cash used in
                  financing activities          (14,487,000) (2,498,000)

Net decrease in cash and cash equivalents         8,666,000   3,742,000

Cash and cash equivalents at beginning of period    20,294,000 17,163,000

Cash and cash equivalents at end of period     $ 28,960,000 $20,905,000
                                                 ========== ===========
</TABLE>

See accompanying notes to consolidated financial statements.
<PAGE>


<PAGE 5>
PART I: FINANCIAL INFORMATION

Notes to Financial Statements of Registrant

September 30, 1995

1.   The consolidated financial statements are unaudited and reflect
all adjustments and reclassifications which are, in the opinion of
Management, necessary for a fair presentation of the results of
operations for the interim period.  The results of operations and cash
flows for the interim period ended September 30, 1995 are not
necessarily indicative of results which may be expected for any other
interim period or the year as a whole.

2.   In the ordinary course of business the Company enters into
commitments to extend credit to its customers. These commitments are
not reflected in the accompanying consolidated financial statements
and Management does not expect any loss to result from such
commitments. As of September 30, 1995 and December 31, 1994 the
Company had entered into the following commitments:
<TABLE>
<CAPTION>
                                      September 30,   December 31, 
                                           1995         1994    
<S>                                   <C>           <C>
     Letters of Credit                $    866,000  $  1,641,000
     Undisbursed Loan Commitments     $ 13,385,000  $ 12,895,000
</TABLE>

3.   Earnings per share amounts have been computed using the weighted
average number of common shares and dilutive common equivalent shares
outstanding.  The number of such primary shares are 1,710,429 for
September 30, 1995 and 1994.  

4.   Certain reclassifications have been made in the 1994 financial
statements to conform to the presentation used in 1995. 












<PAGE>
<PAGE 6>
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS

Management's Discussion and Analysis of Financial Condition and
Results of Operations is intended to provide a better understanding
of the material changes in trends relating to the financial condition,
results of operations, and liquidity of Sterling West Bancorp (the
"Company").  The discussion and analysis for the third quarter ended
September 30, 1995 reflect the operations of the Company's two
subsidiary companies, Sterling Bank ("Bank") and Sterling Business
Credit, Inc. ("Business Credit").  The Bank and Business Credit are
wholly-owned subsidiaries of the Company. During the third quarter of
1995 Business Credit sold substantially all of its assets to an
unaffiliated third party. During the fourth quarter of 1994 the
Company decided to discontinue its mortgage banking operations which
were performed substantially by BSC Mortgage Corporation, a wholly
owned subsidiary of the Bank. Unless otherwise specified, the
discussion below relates to the Company's consolidated financial
condition and operations. 

During the third quarter of 1995, the Company had a net loss of
$1,185,000 as compared to a net loss of $146,000 in the same quarter
in 1994.  The increase in net loss resulted from a loss from
discontinued operations of $1,390,000 as compared to a loss from
discontinued operations of $112,000 in the same period of 1994. The
loss from discontinued operations resulted from a provision for
expected losses related to repurchased loans which were originated by
BSC Mortgage Corporation. The provision was necessary because of a
settlement with a third party for an amount in excess of related
reserves. Our legal counsel in an arbitration proceeding advised us,
during the third quarter, that, as a result of findings during
discovery, our prospects for recovery were significantly less than
originally anticipated and that we should pursue a settlement. 

Income from continuing operations was $205,000 in the third quarter
of 1995 compared to loss from continuing operations of $34,000 for the
same period of 1994. The increase resulted from a $1.5 million gain
on sale of assets of Business Credit which was offset by a $0.3
million increase in the provision for loan losses, a $0.5 million
increase for real estate operations, net and a higher tax rate
resulting from an inability to use tax loss credits.  The Company's
real estate held for sale and nonaccrual loans decreased to $8.6
million at September 30, 1995 from $11.4 million at September 30, 1994
as compared to $9.5 million at December 31, 1994. 

FINANCIAL CONDITION

Assets

At September 30, 1995 assets of the Company were $115,623,000, a
decrease of 12.7% from the $132,491,000 at December 31, 1994.  The
decreased asset levels reflect the need to reduce size in order to
satisfy regulatory capital ratio requirements applicable to the

<PAGE 7>
Company and the Bank and the slow economic environment .  Significant
changes in the distribution of assets included a $8.7 million increase
in cash and cash equivalents as assets being liquidated, primarily
relating to the Business Credit sale, were invested in federal funds
sold. Loans receivable decreased $20.6 million primarily as a result
of the sale of assets of Business Credit. Assets of discontinued
operations decreased $3.5 million as a result of the continued
liquidation of receivables of BSC, and the use of cash to liquidate
payables. Other assets decreased $0.7 million with the receipt of a
tax refund. Notes payable decreased $11.7 million as the line of
credit used to finance Business Credit was paid out of the Business
Credit sale proceeds along with the notes issued by the Company. 

The Company's real estate held for sale consists of real estate owned
and real estate investments, and decreased to $6.4 million at
September 30, 1995 from $7.8 million at December 31, 1994 as compared
to $8.5 million at September 30, 1994. During the third quarter 8
single family residences with a book value of $1.0 million were added
to real estate held for sale as a result of the settlement of a
repurchase dispute with a third party. One residential lot with a book
value of $0.1 million was sold.  Properties held at September 30, 1995
consisted of fourteen single family residences, three apartment
buildings, one four unit condominium development, one residential lot
development, three residential lots and one commercial building.  All
properties are stated at the lower of cost or estimated fair market
value less estimated selling costs. Subsequent to September 30, 1995
two of the single family residences with a total book value of $0.2
million were in escrow or had been sold at amounts approximating book
value. 

While management does not expect any substantial additional material
losses on the sale of these properties in excess of the allowances
already provided in the financial statements, because of the fact that
74% of the Bank's loan portfolio is real estate secured, management
expects that further foreclosures will occur and no assurance can be
given that additional losses will not occur.  See "RESULTS OF
OPERATIONS - Net Interest Income" and "RESULTS OF OPERATIONS -
Noninterest Expense" for a description of the effect of these assets
on net interest income and noninterest expense.

Source of Funds

Total deposits were $104.3 million at September 30, 1995 compared to
$107.1 million at December 31, 1994. The decrease primarily consisted
of a $1.9 million decrease in money market deposits and a $1.3 million
decrease in other time deposits.  These deposit changes reflect normal
fluctuations in these accounts and the asset-liability management
process at the Bank which considered reduced funding needs as a result
of the drop in assets. Notes payable decreased from $11.9 million at
December 31, 1994 to $0.2 million at September 30, 1995 as a result
of payoff at Business Credit of its line of credit from Security
Pacific Business Credit, Inc. with the sale of most of its assets. The
Company also paid off the $1.4 million of outstanding notes the

<PAGE 8>
proceeds of which had been downstreamed to Business Credit. The
remaining outstanding notes payable consist of borrowings under a $1.5
million line of credit provided by First Capital Corporation, the
entity which acquired substantially all the assets of Business Credit.
That line of credit is collateralized by the remaining loan portfolio
of Business Credit. The line of credit matures on September 7, 1996
and provides for interest to be charged on the outstanding daily loan
balance of Business Credit at the rate of 1-3/4% over the prime rate,
from time to time, of NatWest Bank N.A.

There are statutory and regulatory limitations on the amount of
dividends which may be paid to the Company by the Bank as well as
statutory limitations on the amount of dividends which may be paid to
the Company by Business Credit. At September 30, 1995 the Bank is
prohibited from paying dividends under these provisions.  The Bank is
also prohibited from paying cash dividends to the Company under the
terms of memorandums of understanding with the Federal Reserve Bank
of San Francisco ("FRB"), the Federal Deposit Insurance Corporation
("FDIC") and the State Banking Department unless the payment is
approved in advance by the FRB, the Regional Director of the FDIC and
the California Superintendent of Banks.  Please see "CAPITAL
RESOURCES" below for a discussion of the terms of these memorandums
of understanding.  


RESULTS OF OPERATIONS

Net Income

During the third quarter of 1995, the Company had a net loss of
$1,185,000 as compared to a net loss of $146,000 in the same quarter
in 1994. The net loss resulted primarily from losses from discontinued
mortgage banking operations of $1,390,000 in 1995 as compared to
$112,000 in 1994. Income from continuing operations was $205,000 in
the third quarter of 1995 compared to loss from continuing operations
of $34,000 for the same period of 1994. The improvement resulted from
a $1.5 million gain on sale of assets of Business Credit on September
6, 1995 which was offset by a $0.3 million increase in the provision
for loan losses, a $0.5 million increase for real estate operations,
net and a higher tax rate resulting from an inability to use tax loss
credits. Net interest income increased $0.2 million as interest income
decreased slightly in the third quarter of 1995 as compared to the
same period of 1994 as the effect of lower loans outstanding was
offset by a higher prime rate; interest expense did not experience
similar increases in interest expense as a result of changes in the
Bank's deposit mix. 

The loss from discontinued operations resulted from an increased
provision for expected losses related to repurchased loans which were
originated by BSC Mortgage Corporation. The increased provision
resulted from a settlement with a third party for an amount in excess
of related reserves. Our legal counsel in an arbitration proceeding
advised us during the third quarter that, as a result of findings

<PAGE 9>
during discovery, our prospects for recovery were significantly less
than originally anticipated and that we should pursue a settlement. 


For the nine months ended September 30, 1995 the Company reported a
net loss of $1,340,000 compared to a net loss of $1,400,000 in the
same period in 1994. Income from continuing operations was $484,000
in the first nine months of 1995 compared to income from continuing
operations of $132,000 for the same period of 1994. The increase
resulted from a $1.5 million gain on sale of assets of Business Credit
on September 6, 1995 which was offset by a $0.5 million increase in
the provision for loan losses, a $0.3 million increase for real estate
operations, net and a higher tax rate resulting from an inability to
use tax loss credits. Interest income at the Bank increased in the
first nine months of 1995 as compared to the same period of 1994 as
a result of a higher prime rate, however the increase was partially
offset by similar increases in interest expense. 

The Company's discontinued mortgage banking operation was in the
business of originating and selling in the secondary market first and
second trust deed loans secured by residential properties.  In the
ordinary course of business the Company made representations and
warranties to the purchasers and insurers of mortgage loans and the
purchasers of mortgage servicing rights regarding compliance with
laws, regulations and program standards and as to accuracy of
information.  Under certain circumstances the Company may become
liable for certain damages or may be required to repurchase a loan if
there has been a breach of representations or warranties.  Although
the repurchase obligations are not triggered by defaults the investor
does not usually request a repurchase unless there is a default.

Since the suspension by FHLMC, in August of 1993, of BSC's eligibility
to sell mortgages to and service mortgages for FHLMC the number of
repurchase requests had increased. The repurchase and make whole
requests (where the loan has already been foreclosed upon and the
related collateral has been sold at a loss) relating to 39 loans sold
to FHLMC were the subject of a dispute between the Company and a
mortgage servicer to whom the Company sold the related residential
mortgage servicing rights. FHLMC had required the servicer to
repurchase the loans or to otherwise make them whole and the servicer
had requested the Company to indemnify it. The Company and the
mortgage servicer settled this dispute in the third quarter of 1995. 
The Company paid $3.8 million to the servicer and received loans and
REOs with a principal balance of $1,976,000.  As a result of this
settlement the Company booked a charge to discontinued operations in
the third quarter of 1995 of approximately $1.5 million. At September
30, 1995 the Company has no outstanding repurchase requests from FHLMC
but has outstanding from other investors requests to repurchase 2
foreclosed properties totaling $221,000 and 5 make whole requests
which are alleged to be $0.3 million.  During 1995 the Company has
received 5 repurchase requests compared to 45 repurchase requests
during 1994 and has received none since July, 1995. The loans for
which repurchases and makewholes have been requested were generally

<PAGE 10>
originated in 1989, 1990 and the first half of 1991, a period of high
real estate prices in Southern California and a period during which
most of BSC's originations were sold to FHLMC.  As a result of the
real estate recession in Southern California these repurchases
frequently result in losses. The Company maintained at  September 30,
1995, in addition to its allowance for loan losses, an allowance for
repurchase losses of $0.9 million to cover this repurchase contingency
and contingencies related to repurchase requests which may be received
in the future.  

The Company continues to have a potential liability for
representations and warranties made to FHLMC and other investors in
loans originated by BSC.  The loans were sold in the Bank's name and
the Bank made the representations and warranties to the purchaser. 
No assurance can be given that such requests will not continue or that
other requests will not be received from other investors. The
discontinuance of BSC operations will not effect the Bank's
responsibility for representations and warranties in the sale of such
mortgage loans. 


Net Interest Income

Net interest income is the difference between interest and fees earned
on earning assets and interest paid on deposits and other sources of
funds. Net interest income increased 11.3%, or $0.2 million, for the
third quarter of 1995 as compared to the same period in 1994. The
increase in the Company's net interest income for the third quarter
was due substantially to the generally higher level of interest rates,
including the prime rate, during the third quarter of 1995 as compared
to the third quarter of 1994, to the sale of Business Credit assets
and the related payoff of the Company's notes payable and to changes
in the Bank's deposit mix as a result of the normal asset-liability
changes directed by Bank management. These changes, which were
influenced by the discontinuance of the Company's mortgage banking
operations in the fourth quarter of 1994 and the need to reduce asset
size for capital ratio purposes, resulted in decreases in interest
bearing deposit accounts and an increase in non-interest bearing
demand deposit accounts. The interest expense related to those types
of deposits changed accordingly.  This effect was offset by decreases
in the amount of loans and deposits outstanding. The increase in
interest expense on savings and Now accounts is due to the fact that
the Bank has a savings account product which is tied to the prime
rate.  


Net interest income increased 6.8% for the first nine months of 1995
as compared to the same period in 1994. The increase in the Company's
net interest income was due substantially to a $0.8 million increase
in interest income on loans and a $0.5 million increase in interest
expense. The increase in interest income on loans resulted from the
generally higher level of interest rates, including the prime rate,
during 1995 as compared to 1994. The increase in interest expense also

<PAGE 11>
resulted from the higher level of interest rates but was lessened as
the Company reduced interest bearing deposits.  

Nonperforming assets, consisting of nonaccrual loans and real estate
held for sale, amounted to $9.1 million at September 30, 1995 compared
to $9.5 million at December 31, 1994 and $11.5 million at September
30, 1994.  Nonaccrual loans amounted to $2.1 million at September 30,
1995 as compared to $1.7 million at December 31, 1994 and $1.5 million
at September 30, 1994. Real estate held for sale decreased from $9.8
million at September 30, 1994 and $7.8 million at December 31, 1994
and to $6.4 million at September 30, 1995.  The decrease in real
estate held for sale in the first nine months is due to the sale of
six properties with an aggregate book value of $1.9 million.  The high
level of nonaccrual loans and real estate held for sale results from
the recessionary environment in Southern California. 

The Company expects that the continued ownership of these generally
non-earning assets will have a negative impact on net interest margin
and on net earnings of the Company in the short run.  A high level of
non-earning assets negatively effects net interest income because the
Company incurs interest expense to finance the ownership of the asset
but earns no corresponding interest income.  See "RESULTS OF
OPERATIONS - Allowance and Provision for Possible Loan Losses" below
for a description of the nonaccrual loans and see "FINANCIAL CONDITION
- Assets" above for a description of the real estate held for sale.

Allowance and Provision for Possible Loan Losses

The provision for loan losses is determined by management based upon
the Company's loan loss experience, the performance of loans in the
Company's portfolio, the quality of loans in the Company's portfolio,
evaluation of collateral for such loans, the economic conditions
affecting collectibility of loans, the prospects and financial
condition of the respective borrowers or guarantors and such other
factors which in management's judgment deserve recognition in the
estimation of probable loan losses.  In addition, regulatory agencies,
as an integral part of their examination process, periodically review
the Bank's allowance for loan losses.  Such agencies may require the
Bank to recognize additions to the allowance or to take charge-offs
(reductions in the allowance) in anticipation of losses. 

A substantial portion of the balance of the Company's loan portfolio,
including a substantial portion of its commercial, industrial and
agricultural loans, is secured by real estate collateral, almost all
of which is located in Southern California.  While in most cases the
amount of the loan is less than 75% of the original appraised value
of the property or the cost of the project, the Company has suffered
from the recent effects of the downturn in the real estate market and
continues to be vulnerable to further such downturns. 

At September 30, 1995, the allowance for possible loan losses was
$1,673,000 or 2.4% of total loans, as compared to $1,613,000, or 
1.77% of total loans at December 31, 1994 and $1,760,000, or 2.0% of

<PAGE 12>
total loans at September 30, 1994. The allowance for loan losses was
79% of nonaccrual loans at September 30, 1995 as compared to 93% at
December 31, 1994 and 117% at September 30, 1994. The Company
generally maintains at least a 15% allocation in its allowance for
loan losses for nonaccrual loans based on its historical loss ratio.
During the first nine months of 1995 the Company made additions to the
allowance of $686,000 compared to $175,000 during the same period in
1994. Reductions from the reserve in the form of net charge-offs
amounted to $902,000 for the first nine months of 1995 as compared to
$452,000 for the same period in 1994. 

Nonaccrual loans amounted to $2.1 million at September 30, 1995 as
compared to $1.7 million at December 31, 1994 and $1.5 million at
September 30, 1994.  These loans, at September 30, 1995 include eight
loans which were more than 90 days past due at that date.  One loan
for $1.1 million is secured by junior liens on an office building in
Long Beach and a hotel in Los Angeles. Four loans for a total of $0.6
million are secured by first trust deeds on single family residences. 
One loan for $0.2 million is secured by a second trust deed on a
commercial property. One loan for $0.1 million is secured by a first
trust deed on a commercial property. The remaining loan is for $0.1
million and is secured by a uniform commercial code filing on the
assets of the borrower.  The risk inherent in these loans, the
strength of the collateral and guarantees securing them as well as the
decrease in real estate values in Southern California has been taken
into consideration in determining the adequacy of the allowance for
loan losses.  

The total recorded investment in loans considered impaired under SFAS
114 at September 30, 1995 was $2.1 million (all of which were on a
nonaccrual basis). Included in this amount is $1.0 million of impaired
loans for which the related allowance for credit losses is $0.1
million and $1.1 million of impaired loans that, as a result of
expected collection of nonaccrued interest, do not have an allowance
for credit losses. The average recorded investment in impaired loans
during the nine months ended September 30, 1995 was approximately $1.9
million. For the nine months ended September 30, 1995, the Company
recognized interest income on those impaired loans of $25,000, which
included $11,000 of interest income recognized using the cash basis
method of income recognition.  Discounted future cash flows have been
used to measure the value of all impaired loans. Management considers
a loan impaired if payment is 90 or more days past due and an
evaluation of collateral indicates that it is unlikely that all
contractual amounts due will be received. Interest received on
impaired loans generally is applied against principal or reported as
interest income, according to management's judgement as to the
collectibility of principal.

The Company has established a separate allowance for repurchase losses
which amounted to $0.9 million at September 30, 1995 which is not
included in the allowance for loan losses but is carried in other
liabilities.  The Company has also established a separate allowance
for losses on real estate held for sale which amounted to $0.5 million

<PAGE 13>
at September 30, 1995 which is not included in the allowance for loan
losses but is carried as a reduction of real estate held for sale.  


Taking into account economic trends in Southern California and the
condition of the loan portfolio management believes that the allowance
for loan losses at September 30, 1995 was adequate to absorb known and
inherent risks in the loan portfolio.  However, given the
deterioration in the market for real estate in the Southern California
area, no assurance can be given that the Company will not incur
additional losses on these loans.

Noninterest Income

Noninterest income for the third quarter of 1995 increased $1.5
million to $1,734,000 compared to $227,000 for the third quarter of
1994.  This increase is due primarily to the $1.5 million gain on the
sale of Business Credit assets.

Noninterest income for the first nine months of 1995 increased $1.6
million to $2,290,000 compared to $676,000 for the first nine months
of 1994.  This increase is due primarily to the $1.5 million gain on
the sale of Business Credit assets and secondarily to a $$0.1 million
increase in gains on the sale of loans guaranteed by the Small
Business Administration.  

Noninterest Expense

Noninterest expense increased 20% for the third quarter of 1995 to
$2,393,000 as compared to $1,999,000 for the same period of 1994
primarily as a result of the $478,000 increase in real estate
operations, net. Other noninterest expense increased $48,000 which
consisted primarily of increases in legal fees related to the pending
arbitration proceeding and consulting fees in connection with
personnel matters.  These increases were partially offset by lower
directors fees. 

Noninterest expense increased 7% for the first nine months of 1995 as
compared to the same period of 1994 as a result of the $0.3 million
increase in other noninterest expense which consisted primarily of
legal and consulting fees and a $0.3 million increase in real estate
operations, net. Occupancy costs were lower as a result of the move
of two branches to improved locations at lower rent and a one time
credit related to lower property taxes on the headquarters location.

The continued high level of real estate operations, net results from
the high level of real estate held for sale.  During the third quarter
of 1995 the Company incurred expenses of $550,000 for writedown and
loss provision on other real estate owned and $58,000 for the
maintenance and operation of such properties.  During the quarter the
Company sold one foreclosed property and two other properties were in

<PAGE 14>
escrow at the end of the quarter.

CAPITAL RESOURCES

Management seeks to maintain a level of capital adequate to support
asset growth and credit risks and to ensure that the Company is within
established regulatory guidelines and industry standards.  The Company
and the Bank are required to achieve risk-based capital standards and
leverage capital standards.  The risk-based capital standards
establish capital requirements that are more sensitive to risk
differences between various assets, consider off balance sheet
activities in assessing capital adequacy and minimize the disincentive
to holding liquid, low risk assets.  The Company and the Bank are
required to achieve a minimum 8.0% total capital to risk-weighted
assets ratio (of which at least 4.0% must be Tier 1 Capital consisting
primarily of common stock and retained earnings, less goodwill). The
Bank is also subject to minimum capital requirements in a Memorandum
of Understanding with the California State Banking Department and the
FDIC (the "Memorandum"). The following table sets forth the Company's
and the Bank's capital ratios at September 30, 1995 (dollars in
thousands).
<TABLE>
<CAPTION>
                               Company             Bank      
                           Amount    Ratio    Amount    Ratio
<S>                      <C>         <C>     <C>        <C>
Tier 1 risk based capital$  9,017    11.36%  $ 7,520     9.69%
Tier 1 risk based capital
 minimum requirement        3,174     4.00     3,104     4.00
Excess                      5,843     7.36     4,416     5.69

Total risk based capital $ 10,009    12.61   $ 8,491    10.94
Total risk based capital
 minimum requirement        6,348     8.00     6,207     8.00
Excess                      3,661     4.61     2,284     2.94

Risk-weighted assets     $ 79,344            $77,591

Tier 1 leverage capital  $  9,017     7.19%  $ 7,520     6.79%
Tier 1 leverage capital
 minimum requirement        5,641     4.50
 Memorandum requirement                        7,477     6.75
Excess                      3,376     2.69        43     0.04

Total average assets      125,372            110,777
</TABLE>


The Bank is subject to the provisions of a memorandum of understanding
entered into in March, 1995 with the FDIC (the "Memorandum") which
replaced and superseded the provisions of a previous memorandum of
understanding.  Under the Memorandum the Bank is required, among other
things, to achieve and maintain Tier 1 capital equal to or above 6.75%
of total assets; charge off all assets classified "Loss" as of
September 26, 1994; reduce assets classified as "Substandard" as of

<PAGE 15>
September 26, 1994 to not more than $7,500,000 by June 13, 1995, not
more than $6,500,000 by September 11, 1995 and not more than
$4,500,000 by March 10, 1996; establish and maintain an adequate
allowance for loan losses; develop a plan to control overhead and
other expenses; install procedures to correct certain internal routine
and control deficiencies; and not pay cash dividends without the prior
written consent of the FDIC and the California Superintendent of
Banks.

The Bank is currently in compliance with the provisions of the
Memorandum. Management believes that it will be able to remain in
compliance with the Memorandum and otherwise meet capital
requirements, and that any actions taken to so comply will not have
a material adverse effect on the Company's future financial condition
or results of operations.  

The Company suspended its quarterly cash dividends in the third
quarter of 1993. The Company expects that future cash dividends will
depend on a return to profitability and the maintenance of acceptable
financial results in the future.

The provision for income taxes for the nine month period ended
September 30, 1995 is as follows:
<TABLE>
<CAPTION>
                 Federal           State            Total 
<S>            <C>               <C>              <C>
Current        $ 404,000         $219,000         $623,000
Deferred             --               --               -- 
               $ 404,000         $219,000         $623,000
</TABLE>
The provision for income taxes reflects an effective tax rate of 68%
on income before income taxes.  The components of income tax expense
causing the variation from the expected statutory federal tax rate are
not significantly different than the amounts disclosed in the prior
year.

The following table shows the components of the current and deferred
tax asset recorded in the balance sheet at September 30, 1995:

           Current                                $410,000
           Deferred                                598,000
           Total                                $1,008,000
  <PAGE>
<PAGE 16>
PART II: OTHER INFORMATION


ITEM  6. Exhibits and Reports on 8-K.

  (A)  Exhibits:
           Exhibit 10.31 - Indemnification agreement dated October 1,
           1995 between Douglas B. Swets and Sterling West Bancorp.

           Exhibit 10.32 - Indemnification agreement dated October 1,
           1995 between Paul Leichenger and Sterling Business Credit,
           Inc.

           Exhibit 10.33 - Indemnification agreement dated October 1,
           1995 between Robert Brito and Sterling Business Credit,
           Inc.
               
           Exhibit 27    - Financial Data Schedule

  (B)  Reports on Form 8-K: 
       A report on Form 8-K was filed dated September 7, 1995
       reporting on the following items:

           Item 2: Disposition of Assets - This item described the
           sale of Sterling Business Credit, Inc. 

           Item 7: Financial Statements, Pro Forma Financial
           Information and Exhibits - This item described the pro
           forma effect on the financial statements of the sale of a
           substantial portion of the assets of Sterling Business
           Credit, Inc.


                            SIGNATURES


Pursuant to the requirement 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.

                                      STERLING WEST BANCORP
                                          (Registrant)


DATED: November 13, 1995             By:/s/Douglas B. Swets         

                                  Douglas B. Swets
                                  Chief Financial Officer
                                  (Principal Financial and
                                  Accounting Officer)