WEST COAST BANCORP AND SUBSIDIARIES

                     U.S. Securities And Exchange Commission
                             Washington, D.C. 20549

                                   FORM 10-QSB

           [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended March 31, 1999


             [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
                                  EXCHANGE ACT

                    For the transition period from N/A to N/A

                         COMMISSION FILE NUMBER: 0-10897


                               WEST COAST BANCORP
                     (Exact name of small business issuer as
                            specified in its charter)

CALIFORNIA                                                   95-3586860
(State or other jurisdiction                                 (IRS Employer
of incorporation or organization)                            Identification No.)


                               535 E. FIRST STREET
                          Tustin, California 92780-3312
                    (Address of principal executive offices)

                                 (714) 730-4499
              (Registrant's telephone number, including area code)

                                       N/A
              (Former name, former address, and former fiscal year,
                          if changed since last report)

         Check whether the issuer (1) filed all reports  required to be filed by
Section 13 or 15(d) of the  Exchange  Act during the past 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

              Number of shares outstanding of each of the issuer's
                 classes of common equity as of April 30, 1999:

                                    9,258,942


             Transitional Small Business Disclosure Format Yes No X
                                                                                

                   This document contains a total of 22 pages.



                                       1
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS

                                                         March 31,  December 31,
(in thousands, except share data)                          1999         1998
                                                       (Unaudited)   (Audited)
                                                     ---------------------------

ASSETS                                       
Cash and due from banks                                $   9,479      $   9,334
Federal funds sold                                         2,800          4,500
Investment securities available-for-sale
     at fair value                                        27,543         29,128

Loans                                                    113,031        109,547
Less allowance for loan losses                            (2,375)        (2,444)
                                                     ---------------------------
     Net loans                                           110,656        107,103
                                                     ---------------------------
Real estate owned, net                                       522            528
Premises and equipment, net                                  571            516
Deferred taxes                                             1,422          1,408
Other assets                                               1,230          1,267
                                                     ---------------------------
                                                       $ 154,223      $ 153,784
                                                     ===========================

LIABILITIES
Deposits:
Demand, non interest-bearing                           $   49,235     $  47,254
Savings, money market & interest-bearing demand            43,855        45,510
Time certificates under $100,000                           23,040        20,288
Time certificates of $100,000 or more                      17,533        20,687
                                                     ---------------------------
     Total deposits                                       133,663       133,739

Federal Home Loan Bank borrowings                           2,000         2,000
Note payable affiliates                                       577           589
Capital lease obligation                                      243           265
Other liabilities                                           1,317         1,364
                                                     ---------------------------
     Total liabilities                                    137,800       137,957

Commitments and contingencies
Minority interest in subsidiary                             7,364         7,094
                                                     ---------------------------
SHAREHOLDERS' EQUITY
Common stock, no par value - 30,000,000
  shares authorized, 9,258,942 shares
  issued and outstanding in 1999 and 1998                  30,274        30,274
Accumulated deficit                                       (21,120)      (21,458)
Accumulated other comprehensive income -
  net of tax                                                  (95)          (83)
                                                     ---------------------------
     Total shareholders' equity                             9,059         8,733
                                                     ---------------------------
                                                       $  154,223     $ 153,784
                                                     ===========================


          (See accompanying notes to consolidated financial statements)



                                       2
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                         CONSOLIDATED INCOME STATEMENTS
                                   (Unaudited)


                                                          Three Months Ended
(in thousands,                                                  March 31,
 except share data)                                        1999          1998
                                                     ---------------------------
INTEREST INCOME:
Loans, including fees                                  $   2,607      $   2,573
Federal funds sold                                            37            169
Investment securities                                        506            242
Interest bearing deposits with banks                          --              2
                                                     ---------------------------
     Total interest income                                 3,150          2,986

INTEREST EXPENSE:
Interest on deposits                                         694            729
Other                                                         66             49
                                                     ---------------------------
     Total interest expense                                  760            778
                                                     ---------------------------
     Net interest income                                   2,390          2,208

Provision for loan losses                                     --             --
                                                     ---------------------------
     Net interest income after
     provision for loan losses                             2,390          2,208

Other operating income                                       257            181
Other operating expenses                                   1,970          1,860
Minority interest in net income of subsidiary                279            257
Gain on liquidation of WCV, Inc.                              --              2
                                                     ---------------------------
     Income before income taxes                              398            274

Income tax expense                                            60             --
                                                     ---------------------------
     Net income                                        $     338      $     274
                                                     ===========================

Basic and diluted earnings per share                   $    . 04      $    . 03
                                                     ===========================


          (See accompanying notes to consolidated financial statements)



                                       3
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                                   (Unaudited)


                                                     For the Three Months Ended
                                                                March 31,
(in thousands)                                            1999           1998
                                                     ---------------------------

Net income                                             $     338      $     274

Other comprehensive income, net of tax:
         Unrealized loss on
         available-for-sale investments
         arising during period                               (12)            (6)
                                                     ---------------------------

Other comprehensive loss                                     (12)            (6)
                                                     ---------------------------

Comprehensive income                                   $     326      $     268
                                                     ===========================


          (See accompanying notes to consolidated financial statements)



                                       4
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CHANGES IN
                       SHAREHOLDERS' EQUITY AND CASH FLOWS
                                   (Unaudited)


CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY


                                                Accumulated
                                 Common Stock      Other                Share-
                                ------------- Comprehensive Accumulated holders'
(in thousands)                  Shares  Amount    Income     Deficit    Equity
                                ------------------------------------------------

Balance at December 31, 1998    9,259  $30,274   $ (83)  $ (21,458)   $   8,733
Net income                         --       --      --         338          338
Change in net unrealized 
  loss on available-for-sale
  investments                      --       --     (12)         --          (12)
                                ------------------------------------------------
Balance at March 31, 1999       9,259  $30,274   $ (95)  $ (21,120)   $   9,059
                                ================================================


CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                          Three Months Ended
                                                                March 31,
(in thousands)                                              1999         1998
                                                       -------------------------
Cash flows from operating activities:
 Net income                                               $    338    $    274
 Adjustments to reconcile net income to net
  cash provided by operating activities:
  Depreciation and amortization                                 71          85
  Minority interest in net income of subsidiary                279         257
  Write-down of real estate owned                                6          25
  Gain on sale and liquidation of subsidiaries                  --          (2)
  Amortization and accretion from investment securities         64          11
 Decrease (increase) in other assets                            33         (22)
 Decrease in other liabilities                                 (46)       (713)
                                                       -------------------------
Net cash provided by (used in) operating activities            745         (85)


                                                                     (Continued)


          (See accompanying notes to consolidated financial statements)



                                       5
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

                                                          Three Months Ended
                                                                March 31,
(in thousands)                                              1999         1998
                                                       -------------------------

Cash flows from investing activities:                                           
 Proceeds from maturity of interest bearing balances      $     --    $     99
 Proceeds from maturities and paydowns of investment
   securities available-for-sale                             1,487       2,599
 Purchase of investment securities available-for-sale           --      (1,586)
 Net (increase) decrease in loans                           (3,553)      5,326
 Purchase of premises and equipment                           (124)        (83)
                                                       -------------------------
 Net cash (used in) provided by investing activities        (2,190)      6,355

Cash flows from financing activities:
 Net (decrease) increase in deposits                           (76)     13,585
 Cash payments on notes payable                                (12)        (12)
 Repayment of other borrowed funds                             (22)        (12)
 Transfer from accrued liabilities 
   to note payable affiliates                                   --         514
                                                       -------------------------
 Net cash (used in) provided by financing activities          (110)     14,075
                                                       -------------------------
(Decrease) increase in cash and cash equivalents            (1,555)     20,345

Cash and cash equivalents at beginning of year              13,834       8,541
                                                       -------------------------
Cash and cash equivalents at end of year                  $ 12,279    $ 28,886
                                                       =========================

Supplemental  disclosures of cash flow information:
  Cash paid during the period for:
     Interest                                             $    755    $    737
     Income taxes                                               10          70

Supplemental schedule of non-cash investing and financing activities:
     Transfer of note payable from accrued liabilities
       to note payable to affiliate                              -         514


          (See accompanying notes to consolidated financial statements)



                                       6
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 1999
                                  (Unaudited)

(1)      BASIS OF PRESENTATION


         The   unaudited   consolidated   financial   statements   reflect   all
         adjustments,  consisting  primarily  of normal  recurring  adjustments,
         which are, in the opinion of management, necessary for a fair statement
         of the results of operations for the interim  periods.  Results for the
         periods ended March 31, 1999 and 1998 are not necessarily indicative of
         results that may be expected for any other interim  period,  or for the
         year as a  whole.  All  significant  intercompany  balances  have  been
         eliminated.

         On February 29, 1996,  West Coast  Bancorp  ("West  Coast") and Sunwest
         Bank ("Sunwest")  entered into an agreement with Western  Acquisitions,
         L.L.C.  ("Western"),  an affiliate of Hovde  Financial,  Inc., for West
         Coast to sell 35  existing  shares of Sunwest  for  $2,520,000  and for
         Sunwest to issue and sell 15 new shares for  $1,051,000.  On  September
         13,  1996,  the sale closed.  West Coast and Western own  approximately
         56.5% and 43.5% of Sunwest, respectively.

         Certain  reclassifications have been made in the prior period financial
         statements to conform to the presentation in the current period.

(2)      RECENT ACCOUNTING PRONOUNCEMENTS

         In June 1998, the FASB issued SFAS No. 133,  "Accounting for Derivative
         Instruments and Hedging Activities." SFAS No. 133 requires companies to
         record  derivatives  on the  balance  sheet as assets  or  liabilities,
         measured at fair value.  Gains or losses  resulting from changes in the
         values of those derivatives would be accounted for depending on the use
         of the  derivative and whether it qualifies for hedge  accounting.  The
         key  criterion for hedge  accounting  is that the hedging  relationship
         must be highly effective in achieving  offsetting changes in fair value
         or cash flows.  SFAS No. 133 is effective  for fiscal  years  beginning
         after June 15,  1999.  Management  of the Company  does not believe the
         adoption of SFAS No. 133 will have a material  impact on the  Company's
         results of operations or financial position when adopted.



                                       7
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 1999
                                   (Unaudited)

(3)      EARNINGS PER SHARE

         The following is a reconciliation  of basic earnings per share (EPS) to
         diluted EPS for the three month periods ended March 31, 1999 and 1998.

                                              Three months ended March 31, 1999:

         (dollars and shares in thousands)           Net               Per Share
                                                     Income   Shares     Amount
                                                   -----------------------------
         Basic EPS:
         Income available to common shareholders     $ 338    9,259    $ 0.04
         Effect of Dilutive Securities:
         Stock options                                   -        4         -
                                                   -----------------------------
         Diluted EPS:
         Income available to common shareholders
          plus assumed conversions                   $ 338    9,263    $ 0.04
                                                   =============================

                                              Three months ended March 31, 1998:

                                                     Net               Per Share
                                                     Income   Shares     Amount
                                                   -----------------------------
         Basic EPS:
         Income available to common shareholders     $  274   9,169    $ 0.03
         Effect of Dilutive Securities:
         Stock options                                    -      86         -
                                                   -----------------------------
         Diluted EPS:
         Income available to common shareholders
          plus assumed conversions                   $  274   9,255    $  0.03
                                                   =============================


 (4)     LOANS

         A summary of loans follows:
                                                         March 31,  December 31,
         (in thousands)                                    1999         1998
                                                       -------------------------
         Commercial loans not secured by real estate    $  35,155    $  34,318
         Real estate mortgage loans                        73,240       71,184
         Real estate construction                             880          376
         Personal loans not secured by real estate          4,031        3,942
         Unearned income, discounts and fees                 (275)        (273)
                                                       -------------------------
                                                        $ 113,031    $ 109,547
                                                       =========================



                                       8
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 1999
                                   (Unaudited)

(5)      OTHER OPERATING INCOME

         A summary of other operating income follows:
                                                           Three Months Ended
                                                                 March 31,
         (in thousands)                                      1999         1998
                                                       -------------------------
         Depositor charges                              $     165    $     139
         Service charges, commissions & fees                   43           12
         Other income                                          49           30
                                                       -------------------------
                                                        $     257    $     181
                                                       =========================


(6)      OTHER OPERATING EXPENSES

         A summary of other operating expenses is as follows:

                                                             Three Months Ended
                                                                  March 31,
         (in thousands)                                      1999         1998
                                                       -------------------------
         Salaries and employee benefits                 $     982    $     972
         Professional services                                204           66
         Occupancy                                            166          173
         Customer service                                     158          103
         Data processing                                      139          129
         Depreciation and amortization                         71           85
         Advertising and promotion                             69           66
         Stationary and supplies                               28           20
         Printing & postage                                    26           23
         Telephone and telefax                                 24           19
         Director fees                                         13           50
         Regulatory fees and assessments                        8            8
         Net cost of operation of real estate owned             5           29
         Miscellaneous                                         77          117
                                                       -------------------------
                                                        $   1,970    $   1,860
                                                       =========================



                                       9
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                                 MARCH 31, 1999
                                  (Unaudited)

The following presents management's  discussion and analysis of the consolidated
financial  condition and operating  results of West Coast Bancorp (as a separate
entity "West Coast" and together with its  subsidiaries  the  "Company") for the
three month periods ended March 31, 1999 and 1998. The discussion should be read
in  conjunction  with the Company's  consolidated  financial  statements and the
notes thereto appearing elsewhere in this report.

Certain  statements  in this  Report  on Form 10-Q  constitute  "forward-looking
statements"  under the Private  Securities  Litigation Act of 1995 which involve
risk and  uncertainties.  The Company's actual results may differ  significantly
from the results  discussed in such  forward  looking  statements.  Factors that
might  cause  such  a  difference  include  but  are  not  limited  to  economic
conditions,  competition  in the  geographic  and  business  areas in which  the
Company conducts its operations, fluctuations in interest rates, credit quality,
year  2000  issues  and  government   regulation.   For  additional  information
concerning   these   factors,   see  "Item  1.  Business   Summary  of  Business
Considerations  and Certain Factors that May Affect Future Results of Operations
and/or Stock Price"  contained in the Company's Annual Report on Form 10-KSB for
the year ended December 31, 1998.

GENERAL

The Company recorded net income of $338,000, or $.04 per share, during the three
months ended March 31, 1999,  as compared  with income of $274,000,  or $.03 per
share,  during the same period in 1998. The 1999 figures  include the effects of
recording a tax provision of $60,000 compared to none in 1998. The higher pretax
income in 1999  versus  1998  occurred  primarily  because  Sunwest  had  higher
earnings in 1999.  Sunwest's  higher  earnings  were  primarily due to increased
growth in net interest income and fees from growth in assets and deposits.

The Company had total assets, loans and deposits as follows:


                    March 31,      December 31,      March 31,      December 31,
                      1999            1998             1998             1997
(in thousands)     -------------------------------------------------------------
Total assets       $ 154,223       $ 153,784        $ 144,505        $ 130,621
Loans                113,031         109,547           97,554          102,877
Deposits             133,663         133,739          128,555          114,970


The $10 million  increase in total assets from March 31, 1998 to March 31, 1999,
occurred  primarily  due to a $15  million  increase  in loans at  Sunwest  from
increased  marketing  efforts and due to the expanding economy in Orange County,
California.  The  increase in assets was funded by an increase in deposits of $5
million,  an  increase in  borrowings  and other  liabilities  of $3 million and
earnings of over $1 million.




                                       10
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                                 MARCH 31, 1999
                                   (Unaudited)


RESULTS OF OPERATIONS

NET INTEREST INCOME
The  increase in net  interest  income in 1999  resulted  primarily  from higher
volumes of interest earning assets offset by lower yields on loans. The improved
mix of interest  earning  assets and  deposits  favorably  impacted net interest
income. Average interest earning assets increased $18 million, or 14% in 1999.

The net interest margin (yield on interest  earning assets less the rate paid on
interest bearing  liabilities) and the net yield on interest earning assets (net
interest  income divided by average  earning assets) both declined in 1999. This
was a result of a decline in the general level of interest rates during the past
year. Loan yields were  significantly  impacted by a decline in the "prime rate"
of 75 basis points from the prior year.

The yield on interest earning assets declined  primarily due to a 96 basis point
drop in loan  yields.  This was caused by the drop in the prime rate noted above
along with competitive  pressures on loan yields in the Company's markets.  This
impact was offset to some extent by a reduction of  investments in Federal funds
with  a  corresponding   increased  investment  in  higher  yielding  investment
securities.  The yield on  investment  securities  has  increased as a result of
investing in corporate bonds and extending maturities.

Interest  expense  declined in 1999 as a result of a decline in rates  offset by
increased volumes.  Average interest bearing liabilities increased by $9 million
from 1998.

The rates paid on interest  bearing  liabilities  declined 45 basis  points from
year ago levels.  This was due to reductions in overall interest rate levels and
a reduction in time deposits as a percentage of interest  bearing  deposits from
50% in 1998 to 46% in 1999. The Company's  deposits are  concentrated in low and
noninterest bearing  transaction  accounts that are not as sensitive to interest
rate changes as the Company's  interest  earning assets are. Future asset growth
will rely to a greater extent on increases in time deposits and borrowed  funds,
potentially increasing the rate paid on interest bearing liabilities.



                                       11
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                                 MARCH 31, 1999
                                   (Unaudited)


The following table sets forth the Company's  average balance sheets,  yields on
earning assets, rates paid on interest-bearing liabilities, net interest margins
and net yields on  interest-earning  assets for the three  month  periods  ended
March 31, 1999 and 1998 (dollars in millions):



                                           1999                   1998
                                    Average    Yields/     Average    Yields/
                                    Balance     Rates      Balance     Rates
                                  ----------------------------------------------
ASSETS

Loans, net of unearned income,
     discounts and fees             $ 111.8      9.33%     $ 100.0     10.29%
Investment securities                  32.3      6.47         16.5      5.85
Federal funds sold                      3.1      4.81         12.6      5.36
Interest bearing deposits
     with financial institutions          -      4.74           .1     14.29
                                  ----------------------------------------------
Total interest earning assets         147.2      8.56        129.2      9.24

Allowance for loan losses              (2.4)                  (2.3)
Cash and due from banks                10.3                    7.8
Other assets                            4.5                    3.7
                                  ----------------------------------------------
                                    $ 159.6                $ 138.4
                                  ==============================================

LIABILITIES AND
SHAREHOLDERS' EQUITY

Time deposits                       $  41.1      4.81%     $  40.1      5.44%
Interest-bearing demand deposits       40.9      1.76         34.8      1.84
Savings deposits                        5.0      1.53          4.9      1.94
FHLB borrowings                         2.0      5.00            -         -
Other debt                               .8     20.02          1.2     15.22
                                  ----------------------------------------------
Total interest bearing liabilities     89.8      3.38         81.0      3.83

Demand deposits                        51.3                   42.6
Other liabilities                       1.3                    1.0
Minority interest                       7.2                    6.1
Shareholders' equity                   10.0                    7.7
                                  ----------------------------------------------
                                    $ 159.6                $ 138.4
                                  ==============================================
Net interest margin                              5.18%                  5.41%
Net yield on interest earning assets             6.50                   6.83



                                       12
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                                 MARCH 31, 1999
                                   (Unaudited)

The increases (decreases) in interest income and expense and net interest income
resulting from changes in average assets, liabilities and interest rates for the
1999 versus 1998 periods are summarized as follows (in thousands):

                                              Three Months Ended March 31,
                                         ---------------------------------------
                                           Asset/        Interest
                                           Liability     Rate
                                           Changes       Changes       Total
                                         ---------------------------------------
Changes in:
     Interest income                      $   407      $   (243)     $   164
     Interest expense                          27           (70)         (43)
                                        ---------------------------------------
Net interest income                       $   380      $   (173)     $   207
                                        ========================================

Loans on which the accrual of interest had been  discontinued  at March 31, 1999
and 1998 amounted to $1,238,000  and $0,  respectively.  If these loans had been
current  throughout  their terms, it is estimated that net interest income would
have increased by approximately $41,000 and $0 in the first quarters of 1999 and
1998,  respectively.  This would have raised the net yield on  interest  earning
assets and the net interest margin by approximately 11 and 0 basis points during
the first quarters of 1999 and 1998, respectively.





                                       13
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                                 MARCH 31, 1999
                                   (Unaudited)


NONPERFORMING ASSETS AND PROVISION FOR LOAN LOSSES

The  following  table  summarizes  the activity in the allowance for loan losses
during the periods indicated (in thousands):

                                                    Three Months Ended
                                                          March 31,
                                                    1999            1998
                                               ---------------------------------
Allowance for loan losses
     balance at beginning of period             $   2,444       $   2,364

Charge-offs                                           (93)            (14)
Recoveries                                             24              17
                                               ---------------------------------
Net (charge-offs) recoveries                          (69)              3

Provision for loan losses                               -               -
                                               ---------------------------------
Allowance for loan losses
     balance at end of period                   $   2,375       $   2,367
                                               =================================

All the above  charge-offs and recoveries  were at Sunwest.  The net charge-offs
during the first quarter 1999 are primarily the result of a single charge-off.

Management  believes  that the  allowance  for loan  losses at March 31, 1999 of
$2,375,000 or 2.10% of loans was adequate to absorb known and inherent  risks in
the  Company's  loan  portfolio.  The ultimate  collectibility  of a substantial
portion of the Company's loans, as well as its financial condition,  is affected
by  general  economic  conditions  and the real  estate  market  in  California.
California has experienced,  and may continue to experience,  volatile  economic
conditions.  These conditions have adversely affected certain borrowers' ability
to repay loans.  While  Southern  California  and Orange County  economies  have
exhibited  positive  trends for several  years,  there is no assurance that such
trends will continue.  A deterioration in economic  conditions could result in a
deterioration  in  the  quality  of  the  loan  portfolio  and  high  levels  of
nonperforming  assets,  classified  assets and charge-offs,  which would require
increased  provisions  for possible loan losses and would  adversely  affect the
financial condition and results of operations of the Company.




                                       14
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                                 MARCH 31, 1999
                                   (Unaudited)

A summary of nonperforming assets follows (dollars in thousands):

                             March 31,   December 31,   March 31,   December 31,
                               1999          1998         1998           1997
                            ----------------------------------------------------
Nonaccrual loans            $ 1,238       $ 1,360       $     -       $     -
Loans 90 days past due
     and still accruing           -             1            31            31
                            ----------------------------------------------------
Nonperforming loans           1,238         1,361            31            31
Real estate owned               522           528         1,127         1,151
                            ----------------------------------------------------
Nonperforming assets        $ 1,760       $ 1,889       $ 1,158       $ 1,182
                            ====================================================
Nonperforming loans/
    Total loans                1.10%         1.24%          .03%          .03%
Nonperforming assets/
    Total assets               1.14%         1.23%          .80%          .90%
                            ====================================================


Nonperforming  assets have  increased  approximately  $578,000 from December 31,
1997.  The  increase is due  primarily to one loan placed on  nonaccrual  in the
second  quarter of 1998. The Bank does not anticipate any principal loss on this
loan.

Impaired  loans have not  changed  significantly  from the  amounts  reported at
December 31, 1998.

Restructured  loans that were performing  substantially in accordance with their
modified  terms  totaled $2.1 million at March 31, 1999. No  restructured  loans
were on nonaccrual status at March 31, 1999.

OTHER OPERATING INCOME

Other operating income increased by $76,000 for the three months ended March 31,
1999,  as  compared  with the same  period  in 1998,  primarily  as a result  of
increased  deposit  services charges and sales of mutual funds in 1999. See note
(5) of the notes to consolidated financial statements.




                                       15
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                                 MARCH 31, 1999
                                   (Unaudited)


OTHER OPERATING EXPENSES

Other operating  expenses increased $110,000 in the three months ended March 31,
1999 from the same period in 1998.  The  largest  increase  was in  professional
services  expense  which  increased  $138,000.  Approximately  $90,000  of  this
increase  was the  result  of  hiring  a  consulting  firm to  conduct  a profit
improvement  study.  Higher  professional  service  expenses  also resulted from
outsourced internal audit services and fees paid to hire new employees. See note
(6) of the notes to  consolidated  financial  statements.  Total other operating
expenses  expressed in dollars and as a percentage of total revenues and average
assets follows (dollars in thousands):

                                                        Three Months Ended
                                                              March 31,
                                                         1999          1998
                                                     ---------------------------
Other operating expenses                             $   1,970     $   1,860
Other operating expenses
  (annualized)/average assets                             4.94%         5.38%
Other operating expenses/net interest income
   and other operating income                             70.7%         77.9%
                                                     ===========================

The other operating expense ratios declined as a result of expenses growing at a
slower rate than assets and revenue;  however, as the Company grows it is likely
that  operating  expenses  will also  increase.  The Company  engaged an outside
consultant to assist the Company in reviewing all significant business processes
during 1999.  The purpose of this review was to  streamline  processes to reduce
expenses  and improve the  delivery of products  and  services to the  Company's
customers.  The  external  costs of this  review  are  expected  to be less than
$130,000.  Although the Company  expects the cost of this review to be recovered
through productivity and revenue enhancements,  there are no assurances that the
expected  results  will be  achieved.  The Company is  currently  assessing  its
facilities  needs in light of its expected future growth and possible  expansion
into other areas of Orange County.  Although no  commitments  for new facilities
have been made, it is likely that  additional  investments in facilities will be
made during 1999.




                                       16
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                                 MARCH 31, 1999
                                   (Unaudited)

Year 2000 Compliance
BACKGROUND - The year 2000 issue refers to computer programs being written using
two digits  rather than four to define an  applicable  year.  Any of a Company's
hardware,  date-driven  automated  equipment  or computer  programs  that have a
two-digit  field to define the year may  recognize a date using "00" as the year
1900 rather than the year 2000. Preparing for the year 2000 is said to be one of
the  biggest  challenges  any company  has had to face to date.  Predictions  of
computer  crashes,   building  lock  downs,  and  business  failures  may  sound
exaggerated,  but the problems are real. Left uncorrected, the year 2000 problem
could cause massive  miscalculations,  lost data,  and equipment  failures.  The
computer related  challenges and potential risks associated with the turn of the
century are  significant  for all  businesses.  One of the greatest risks is not
moving  quickly  enough to find,  fix,  and test for  possible  problems  before
year-end 1999.  Similar to other  companies,  the Company faces the challenge of
ensuring that all computer-related functions will work properly in the year 2000
and beyond and that adequate contingency plans are in place to mitigate possible
interruptions in critical services and products. If the necessary  modifications
and  implementations  are not made on a timely basis,  the year 2000 issue could
have  a  material,  adverse  effect  on  the  business,  consolidated  financial
position, results of operations or cash flows of the Company.

APPROACH TO READINESS - The Company  established a Year 2000 Project Team led by
the  president  of Sunwest  to manage the  Company's  year 2000  readiness.  The
Project  Team  is made up of  senior  managers  of all  departments.  A  project
coordinator  assists with  documenting  the Company's  progress and managing the
databases created to assist in the management of the project. Status reports are
reviewed at the monthly board of directors'  meetings.  The Company's  year 2000
project is well underway and the Company has substantially  completed renovation
for all  mission-critical  applications.  Testing of  substantially  all mission
critical applications was completed by March 31, 1999. An impact analysis of the
Company's data processing environments,  systems, and applications was conducted
to identify and assess their date  sensitivity.  An inventory  database of these
items was developed in preparation for remediation tracking and reporting of the
potential areas of impact. In addition,  the Company has implemented  procedures
to address and track compliance in the following areas:

Infrastructure - The Company's physical facilities,  including building security
systems, fire alarm systems, and equipment,  have been reviewed to determine the
state of year 2000 readiness.

Business partners  (suppliers/vendors)  - Review of the year 2000 efforts of the
Company's  suppliers  and  business  partner  relationships  has  been  done  to
encourage  the timely  resolution of product or service  compliance  issues in a
manner  consistent with the year 2000 project goals of the Company.  The Company
requires a review of all new business partners for year 2000 readiness.

Employee   awareness  -  The  Company  believes  that  employee   awareness  and
understanding of the year 2000 issue is essential to the success of the project.
Employees  must be able to  communicate  confidently  regarding year 2000 issues
with customers.  An aware organization is one that will be able to recognize and
take proactive measures regarding potential problem areas.

Customer  awareness - The Company has taken a leadership  role in  communicating
the year 2000 issue to its  customers and  community.  The Company has conducted
seminars and has made literature available related to the year 2000 issue.



                                       17
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                                 MARCH 31, 1999
                                   (Unaudited)

Risk assessment and customer  readiness - Business failures of key borrowers and
depositors  could  adversely  impact the Company.  The Company has implemented a
program to assess the year 2000  readiness  of all key  customers  and groups of
customers.   The   program   includes   assessing   risk   through  the  use  of
questionnaires, interviews, site visits and a review of business practices.

Independent  third party assessment - The Company's year 2000 readiness  efforts
have  been and  will  continue  to be  assessed  by the FDIC and the  California
Department of Financial  Institutions.  Failure to meet the readiness  standards
could  subject  the  Company to  enforcement  actions.  The  Company has engaged
independent third parties to conduct reviews of the Company's efforts to provide
additional assurance of compliance.

Other  elements of the  Company's  year 2000  program  include  overall  program
management, monitoring and control, risk management, compliance test management,
quality assurance, communications, and support services.

PROGRESS TO DATE - The Company's year 2000  readiness  project is well underway.
Renovation   and  testing   phases  have  been   substantially   completed   for
mission-critical  applications.  Testing and renovation of non mission  critical
areas are  scheduled to be  completed by June 30, 1999.  These goals are in line
with the guidelines of the Federal Financial  Institutions  Examination  Council
(FFIEC).  To the extent that compliance is possible from the Company's  internal
efforts alone,  the Company is taking steps necessary to accomplish these goals.
When  compliance  also depends on the conduct of others,  the Company is working
with its  vendors  and  business  partners  to secure  compliance  and to obtain
appropriate  assurances  that those  externally  developed  systems  are or will
become  compliant on a timely basis and will not  interfere  with the  Company's
business  operations.  While the Company is committed to taking every reasonable
action in this regard,  expected of a prudent business,  the Company is not in a
position to guarantee the performance of others or to predict whether any of the
assurances  that  others  provide  may prove  later to be  inaccurate  or overly
optimistic. Since beginning the year 2000 project, the Company has:

o        Established a Year 2000 Project Team led by senior management
o        Completed inventory of application and system software and hardware
o        Completed an inventory of infrastructure facilities
o        Developed  consolidated  compliance  plans  and  schedules for business
         areas
o        Built databases for inventory tracking and reporting
o        Developed  a database  to log and  track  resolution  of  reported  Y2K
         problems
o        Established budget and cost tracking systems
o        Implemented broad awareness and education activities for employees
o        Developed and implemented a customer inquiry response process
o        Implemented vendor compliance verification
o        Obtained readiness reports from 98% of mission critical vendors
o        Mandated  that all  new and  renewed  contracts  address Y2K compliance
         issues
o        Set up a dedicated test environment to simulate year 2000 conditions
o        Developed test scripts for all mission critical applications
o        Completed testing for 98% of all mission critical applications
o        Assessed 100% of all critical customers
o        Determined  that 52 loan  customers and 41  deposit  customers  require
         ongoing review
o        Developed  a  process  for  communicating  Y2K  impacts  to  customers,
         correspondents, agencies, and vendors
o        Developed  a  plan  to  address  contingency  implementation  dates  if
         remediation does not proceed as planned




                                       18
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                                 MARCH 31, 1999
                                   (Unaudited)

COST OF YEAR 2000 READINESS - The Company currently estimates that it will incur
additional  incremental  out-of-pocket  costs of  about  $185,000.  These  costs
include  equipment and software  purchases  that may be amortized for up to five
years and the cost of  consultants  to  assist  the  Company  with its year 2000
readiness  efforts.  Internal and external costs  specifically  associated  with
modifying  internal-use  software  for the year 2000 are  charged  to expense as
incurred.  All of these costs are being  funded  through  operating  cash flows.
Costs expensed to date for incremental costs associated with the year 2000 issue
were  approximately  $235,000  through  March 31, 1999.  The  Company's  current
estimates of the costs  necessary to implement and test its year 2000  readiness
are based on the facts and circumstances existing today. The estimates were made
using  assumptions  of future events  including the  continued  availability  of
certain resources,  implementation  success and other factors.  New developments
may occur that could affect the Company's  estimates  for year 2000  compliance.
These  developments  include,  but are not limited to: (a) the  availability and
cost of  personnel  trained in this area,  (b) the ability to locate and correct
all  relevant  computer  code and  equipment  issues,  and (c) the  planning and
implementation success needed to achieve full compliance.

The amount of resources  directed to ensuring year 2000  readiness  have slowed,
and will  continue to slow,  the  development  of new  business  and  technology
initiatives that provide new products and services to the Company's customers or
that enhance  effectiveness and profitability of existing products and services.
The  effects  on  the  Company  of  delays  in  other  business  and  technology
initiatives  are not  determinable  at this time, but are not expected to have a
material effect on the financial  condition of the Company.  In addition,  since
there is no uniform  definition of year 2000  "compliance"  and not all customer
situations can be anticipated,  the Company may experience claims as a result of
the year 2000 transition.  It is uncertain whether sufficient insurance coverage
will be  available  to satisfy any claims  asserted.  Additionally,  the Company
continues to communicate with significant customers and vendors to determine the
extent of risk created by those third  parties'  failure to remediate  their own
year 2000 issues.  However,  it is not  possible,  at present,  to determine the
financial effect if significant  customer and vendor remediation efforts are not
resolved in a timely manner.


INCOME TAXES

The  Company  and  Sunwest  recognized  state  income tax expense of $60,000 and
$50,000, respectively, during the three months ended March 31, 1999. Sunwest had
$2.8 million of net deferred  tax assets and  approximately  $5.3 million of net
operating  loss  carryforwards  for  federal  purposes,  and none  for  state at
December 31, 1998.  Excluding the Sunwest amounts,  the Company had $4.9 million
of net operating loss carryforwards at December 31, 1998.




                                       19
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                                 MARCH 31, 1999
                                   (Unaudited)

For all the periods presented a valuation  allowance has been recorded to offset
most or all of the deferred tax assets of Sunwest and the Company. The valuation
allowance was  established due to uncertainty of future earnings at both Sunwest
and the Company.  At December 31, 1998,  Sunwest had a $1.5 million deferred tax
asset based upon estimates of future earnings and tax preference items.  Sunwest
and the Company may adjust the  valuation  allowance and the  corresponding  tax
benefit in 1999 based on changes in estimated future earnings  increases and tax
preference items.

LIQUIDITY

The Company

Liquidity,  as it relates to banking,  represents the ability to obtain funds to
meet loan commitments and to satisfy demand for deposit withdrawals.

The principal sources of funds that provide liquidity for Sunwest are maturities
of investment securities and loans, collections on loans, increased deposits and
temporary  borrowings.  The  Company's  liquid  asset  ratio  (the  sum of cash,
investments  available-for-sale,  excluding  pledged amounts,  and Federal funds
sold divided by total  assets) was 17% at March 31, 1999 and 21% at December 31,
1998.  The  Company  believes it has  sufficient  liquid  resources,  as well as
available credit facilities, to enable it to meet its operating needs.

THE PARENT COMPANY

West Coast's sources of liquidity are limited. West Coast has relied on sales of
assets and borrowings from officers/directors as sources of liquidity. Dividends
from  subsidiaries  ordinarily  provide a source of  liquidity to a bank holding
company.  Sunwest  is  prohibited  from  paying  cash  dividends  without  prior
regulatory consent.

During the first quarter of 1999 West Coast did not receive any  dividends  from
its subsidiaries. West Coast does not currently expect to receive dividends from
its subsidiaries during 1999.

At March 31,  1999,  West  Coast had cash and short  term  investments  totaling
$317,000. No significant cash receipts are expected for the remainder of 1999.

West Coast anticipates cash expenditures  during 1999 to consist of debt service
payments and other operating expenses. West Coast has a note payable of $417,000
due to its Chairman on June 30, 1999. At this time management  believes that the
maturity date will be extended; however, no amendments have yet been made to the
note. West Coast's  projected debt service for the remainder of 1999 is expected
to total $63,000.  West Coast anticipates that other operating  expenses will be
approximately  $70,000  during the  remainder of 1999.  Funds to meet cash needs
will  come from  current  cash  resources  supplemented  by sales of assets  and
possibly dividends from Sunwest.

CAPITAL RESOURCES AND DIVIDENDS

The Company had a 12.87%,  14.12% and 10.40% Tier 1  risk-based  capital,  total
risk-based capital and leverage ratio at March 31, 1999,  respectively.  Sunwest
had a 13.33%,  14.58% and 10.78% Tier 1  risk-based  capital,  total  risk-based
capital and leverage ratio at March 31, 1999, respectively.  These are above the
regulatory  minimums  of  4.00%,  8.00%  and  4.00%,  respectively.  Sunwest  is
classified as a "Well Capitalized" depository institution.

The Company had no material commitments for capital expenditures as of March 31,
1999.




                                       20
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                                 MARCH 31, 1999

                                     PART II

                                OTHER INFORMATION





Item 1.  Legal Proceedings
-------------------------------
NONE

Item 2.  Changes in Securities
-----------------------------------
NONE

Item 3.  Defaults Upon Senior Securities
---------------------------------------------
NONE

Item 4.  Submission of Matters to a Vote of Security Holders
-----------------------------------------------------------------
NONE

Item 5.  Other Information
-------------------------------
NONE

Item 6.  Exhibits and Reports on Form 8-K
----------------------------------------------
(a)      Exhibits

         Exhibit 27 - Financial Data Schedule for March 31, 1999

(b)      Reports on Form 8-K

         None




                                       21
<PAGE>
                                   SIGNATURES





In accordance with the  requirements of the Exchange Act, the registrant  caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.




WEST COAST BANCORP





     /s/Eric D. Hovde                                    May 12, 1999
     -----------------------------------------           ----------------------
     Eric D. Hovde                                       Date
     Chief Executive Officer





     /s/Frank E. Smith                                   May 12, 1999
     -----------------------------------------           ----------------------
     Frank E. Smith                                      Date
     Chief Financial Officer



                                       22
<PAGE>