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 September 30, 1997


             [ ] 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.)

                          4770 CAMPUS DRIVE, SUITE 250
                      Newport Beach, California 92660-1833
                    (Address of principal executive offices)

                                 (714) 442-9330
              (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 October 31, 1997:

                                    9,168,942

             Transitional Small Business Disclosure Format Yes   No X
                                                              --   --



                      This document contains a total of 19 pages.





                                       1
<PAGE>

                       WEST COAST BANCORP AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                                   (Unaudited)

                                                      September 30, December 31,
(in thousands, except share data)                          1997         1996
                                                        ------------------------
ASSETS
Cash and due from bank                                   $   8,333    $   7,246
Federal funds sold                                           4,400       10,100
Interest-bearing deposits with
     financial institutions                                     99        1,982
Investment securities held to maturity -
     approximate fair value of $2,626 in
     1996                                                     --          2,607
Investment securities available-for-sale
     at fair value                                          17,294        2,680

Loans                                                       98,006       82,657
Less allowance for credit losses                            (2,671)      (2,848)
                                                         -----------------------
     Net loans                                              95,335       79,809
                                                         -----------------------
Real estate owned, net                                       1,218        1,243
Premises and equipment, net                                    723          932
Refundable and deferred taxes                                1,200          870
Other assets                                                 1,030        1,518
                                                         -----------------------
                                                         $ 129,632    $ 108,987
                                                         =======================
LIABILITIES
Deposits:
     Demand, non-interest bearing                        $  43,420    $  33,983
     Savings, money market & interest bearing demand        37,056       34,342
     Time certificates under $100,000                       24,036       18,260
     Time certificates of $100,000 or more                  10,489        8,972
                                                         -----------------------
     Total deposits                                        115,001       95,557

Other borrowed funds                                           796          834
Other liabilities                                            1,176        1,642
                                                         -----------------------
     Total liabilities                                     116,973       98,033

Commitments and contingencies
Minority interest in subsidiary                              5,640        4,819
                                                         -----------------------
SHAREHOLDERS' EQUITY
Common stock, no par value - 30,000,000
     shares authorized, 9,168,942 shares
     issued and outstanding in 1997 and 1996                30,176       30,176
Securities valuation allowance                                  49          (25)
Accumulated deficit                                        (23,206)     (24,016)
                                                         -----------------------
     Total shareholders' equity                              7,019        6,135

                                                         $ 129,632    $ 108,987
                                                         =======================
          (See accompanying notes to consolidated financial statements)




                                       2
<PAGE>

                       WEST COAST BANCORP AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)




                                      Nine Months Ended     Three Months Ended
(in thousands,                           September 30,         September 30,
 except share data)                    1997       1996       1997        1996
                                     -------------------------------------------
INTEREST INCOME
Loans, including fees                $ 6,721    $ 6,135    $ 2,327    $ 2,096
Investment securities                    537        292        233         79
Deposits with banks                       26        154          2         45
Federal funds sold                       536        528        219        152
                                     -------------------------------------------
     Total interest income             7,820      7,109      2,781      2,372

INTEREST EXPENSE
Interest on deposits                   1,750      1,546        640        467
Other                                    136        453         45        144
                                     -------------------------------------------
     Total interest expense            1,886      1,999        685        611
                                     -------------------------------------------
     Net interest income               5,934      5,110      2,096      1,761

Provision for credit losses             (144)      (236)      (144)      (180)
                                     -------------------------------------------
     Net interest income after
         provision for credit losses   6,078      5,346      2,240      1,941

Other operating income                   495      1,303        157        645
Other operating expenses               5,299      5,781      1,726      1,846
Loss (gain) on discontinued business       7       (149)         3          3
Loss (gain) on sale of Sunwest shares    --         394        --         (65)
Minority interest expense                783        199        329        199
                                     -------------------------------------------
     Income before income taxes          484        424        339        603

Income tax (benefit) expense            (326)         7        (23)       --
                                     -------------------------------------------

     Net income                      $   810    $   417    $   362    $   603
                                     ===========================================

Net income per common share          $   .09    $   .05    $   .04    $   .07
                                     ===========================================

Weighted average number of common
     and shares outstanding            9,169      9,169      9,169      9,169
                                     ===========================================





          (See accompanying notes to consolidated financial statements)




                                       3
<PAGE>

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



CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY


                                Common Stock     Securities              Share-
                                -------------    Valuation   Accum.     holders'
(in thousands)                  Shares  Amount   Allowance   Deficit     Equity
                                ------------------------------------------------

Balance at December 31, 1996     9,169   $30,176   $ (25)   $ (24,016)   $ 6,135
Net income                        --        --        --          810        810
Change in securities
  valuation allowance             --        --        74          --          74
                                ------------------------------------------------
Balance at September 30, 1997    9,169   $30,176   $  49    $ (23,206)   $ 7,019
                                ================================================


CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                             Nine Months Ended
                                                               September 30,
(in thousands)                                               1997       1996
                                                          ----------------------
Cash flows from operating activities:
   Net income                                             $   810    $   417
   Adjustments to reconcile net income to net
     cash provided by operating activities:
   Depreciation and amortization                              283        390
   Provision for credit losses                               (144)      (236)
   Net change in receivables, payables and other assets      (173)       432
   Write-downs of real estate owned                            25        291
   Gain from sales of real estate owned, net                  --         (60)
   Loss (gain) on discontinued businesses                       4       (149)
   Gain on sale of B&PB shares                                --        (436)
   Loss on sale of Sunwest shares                             --         394
   Minority interest expense                                  783        199
                                                          ----------------------
   Net cash provided by operating activities                1,588      1,242


                                                                  (Continued)




          (See accompanying notes to consolidated financial statements)




                                       4
<PAGE>

                       WEST COAST BANCORP AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

                                                             Nine Months Ended
(in thousands)                                                 September 30,
                                                             1997        1996
                                                          ----------------------
Cash flows from investing activities:                     
   Proceeds from maturity of interest bearing cash
     with an original maturity greater than 90 days       $  1,982    $  2,760
   Purchases of interest bearing cash                          (99)     (1,583)
   Proceeds from maturity of investment securities
     held to maturity                                          --        2,807
   Purchase of investment securities available-for-sale    (13,213)     (1,988)
   Proceeds from maturity of investment securities
     available for sale                                      1,206         --
   Net increase in loans                                   (15,382)     (1,341)
   Proceeds from sales of real estate owned                    --        1,324
   Purchase of premises and equipment                         (101)        (62)
                                                          ----------------------

   Net cash (used in) provided by investing activities     (25,607)      1,917

Cash flows from financing activities:
   Net increase (decrease) in deposits                      19,444     (12,576)
   Proceeds from sale of B&PB stock                            --        1,884
   Proceeds from sales of Sunwest stock                        --        3,571
   Payments for notes payable to affiliates,
     subordinated debt and other borrowed funds                (38)       (608)
   Loan proceeds from affiliate                                --           37
                                                          ----------------------
   Net cash used in financing activities                    19,406      (7,692)
                                                          ----------------------
Decrease in cash and cash equivalents                       (4,613)     (4,533)

Beginning cash and cash equivalents                         17,346      21,907
                                                          ----------------------
Ending cash and cash equivalents                          $ 12,733    $ 17,374
                                                          ======================
                                                                                
Supplemental  disclosures of cash flow information:
  Cash paid during the period for:
     Interest                                             $  1,866    $  2,033
     Income taxes                                                4           7

Supplemental schedule of non-cash investing
  and financing activities:
    Transfer of investment security from held to maturity
      to available for sale                               $  2,553    $     -
    Transfer of loans to real estate owned                      -        2,010
    Transfer from notes payable to affiliates
      to other borrowed funds                                   -          475
    Assumption of real estate owned senior debt                 -          213
    Capital adjustment from Sunwest issuing new shares          -          157
    Reclassification of fixed assets to other assets            -          133



          (See accompanying notes to consolidated financial statements)



                                       5
<PAGE>

                       WEST COAST BANCORP AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1997
                                   (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
         nine and three month periods ended  September 30, 1997 and 1996 are not
         necessarily  indicative  of results which 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.

(2)      RECLASSIFICATIONS

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

(3)      NET INCOME PER SHARE

         The stock options and 10% convertible  subordinated debentures were not
         included in the net income per share  computations  as the effect would
         have been anti-dilutive  because average exercise and conversion prices
         exceeded the market prices during all periods.  Fully diluted  earnings
         per share equals primary earnings per share.

(4)      LOANS

         A summary of loans follows:

                                                     September 30,  December 31,
        (in thousands)                                    1997         1996
                                                       -------------------------
         Real estate mortgage loans                    $ 62,669     $ 54,938
         Commercial loans not secured by real estate     30,004       25,300
         Personal loans not secured by real estate        5,600        2,728
         Less unearned income, discounts and fees          (267)        (309)
                                                       -------------------------
                                                       $ 98,006     $ 82,657
                                                       =========================








                                       6
<PAGE>

                       WEST COAST BANCORP AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1997
                                   (Unaudited)



(5)      OTHER OPERATING INCOME

         A summary of other operating income follows:

                                          Nine Months Ended  Three Months Ended
                                             September 30,      September 30,
        (in thousands)                      1997     1996     1997      1996
                                          --------------------------------------
         Depositor charges                $  412   $  442   $  133   $  138
         Gain on sale of B&PB stock          --       436      --       149
         Interest recoveries on
           charged off loans                 --       320      --       320
         Service charges, commissions
           & fees                             38       42       14       14
         Other income                         45       63       10       24
                                          --------------------------------------
                                          $  495   $1,303   $  157   $  645
                                          ======================================


(6)      OTHER OPERATING EXPENSES

         A summary of other operating expenses is as follows:

                                                 Nine              Three
                                             Months Ended       Months Ended
                                             September 30,      September 30,
         (in thousands)                     1997     1996      1997     1996
                                           -------------------------------------
         Salaries and employee benefits    $2,569   $2,627   $  854   $  838
         Occupancy                            689      689      177      229
         Data processing                      360      312      118      110
         Customer service                     349      275      113       88
         Depreciation and amortization        283      390       87      109
         Professional services                204      330      103       89
         Advertising and promotion            185      150       56       50
         Printing & postage                    80       90       26       27
         Stationary and supplies               66       91       28       29
         Telephone and telefax                 58       52       18       15
         Insurance                             46       75       15       25
         Regulatory fees and assessments       45      157       15       64
         Collection                            36       46        7       14
         Net cost of operation of REO          11      206        5       53
         Miscellaneous                        318      291      104      106
                                           -------------------------------------
                                           $5,299   $5,781   $1,726   $1,846
                                           =====================================









                                       7
<PAGE>

                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                               SEPTEMBER 30, 1997



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
nine and three month periods ended  September 30, 1997 and 1996.  The discussion
should  be  read  in  conjunction  with  the  Company's  consolidated  financial
statements and the accompanying notes appearing elsewhere in this report.

Certain  statements  in this Report on Form 10-QSB  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 area in which the Company
conducts its  operations,  fluctuations  in interest  rates,  credit quality and
government  regulation.  For additional information regarding 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, 1996.

GENERAL

The Company  recorded income of $810,000,  or $.09 per share,  and $362,000,  or
$.04 per share,  during the nine and three months ended  September  30, 1997, as
compared with income of $417,000,  or $.05 per share, and $603,000,  or $.07 per
share, during the same respective periods in 1996. The higher income in the nine
month period of 1997 versus income in 1996 occurred  primarily  because  Sunwest
had higher  earnings,  including  recognizing  a $323,000 tax benefit,  and West
Coast had no interest expense from the 10% convertible  subordinated  debentures
that were  repaid in  October  1996.  Third  quarter  income  was higher in 1996
compared to 1997  primarily  due to  unusually  high  recoveries  of interest on
charged off loans at Sunwest and a gain on sale of Business & Professional  Bank
stock by West Coast, both occurring in the third quarter of 1996.

During 1996  Western  Acquisitions,  L.L.C.  ("Western"),  an affiliate of Hovde
Financial,  Inc.,  purchased 43.5% of Sunwest's  common stock and purchased West
Coast's  remaining  shares of Business &  Professional  Bank.  See Note 1 of the
"Notes to the Consolidated  Financial Statements" for additional  information on
these transactions.

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


                        September 30,  December 31,  September 30,  December 31,
                            1997          1996           1996           1995
(in thousands)           -----------------------------------------------------
Total assets             $129,632      $108,987       $105,411       $113,654
Loans                      98,006        82,657         77,871         79,000
Deposits                  115,001        95,557         90,086        102,662




                                       8
<PAGE>

                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                               SEPTEMBER 30, 1997



The $24 million  increase in total assets from  September  30, 1996 to September
30, 1997 occurred primarily due to a $25 million increase in deposits at Sunwest
from  increased  marketing  efforts and due to the  expanding  economy in Orange
County, California.

RESULTS OF OPERATIONS

NET INTEREST INCOME
Net interest income  increased  $824,000,  or 16%, from the first nine months of
1996 to the same period in 1997.  Sunwest  increased its net interest  income by
$516,000 by increasing  interest income $711,000 from an increase in loans,  the
highest yielding earning asset, and investments,  partially offset by a $195,000
increase in interest  expense on time deposits (the highest cost deposits).  The
increase in net interest  income was also due to West Coast  increasing  its net
interest income by $304,000 from paying off its 10% subordinated  debentures and
other notes payable in October 1996. Net interest income increased $335,000,  or
19%,  for the three  months  ended  September  30,  1997 as compared to the same
period  in 1996.  Sunwest  increased  its net  interest  income by  $244,000  by
increasing interest income $409,000, partially offset by an increase in interest
expense of $165,000.  The  increase in the three month  figures for 1997 reflect
the  increase  in average  loans  outstanding  (14.0%) and  deposits  (18.9%) at
Sunwest. West Coast reduced its interest expense by $99,000 for the three months
ended  September 30, 1997 due to repayment of the  subordinated  debentures  and
other debt in October 1996.  Net interest  income is expected to increase in the
future as Sunwest increases its earning assets through its marketing efforts and
the expanding economy in Orange County, California.




                                       9
<PAGE>

                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                               SEPTEMBER 30, 1997



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 nine and three month periods
ended September 30, 1997 and 1996 (dollars in millions):


                                              Nine Months Ended September 30,
                                               1997                 1996
                                        Average    Yields/   Average     Yields/
                                        Balance    Rates     Balance     Rates
                                       -----------------------------------------
ASSETS
Loans, net of unearned income,
     discounts and fees                $    85.8    10.44%   $    76.7    10.67%
Investment securities                       11.1     6.45          6.3     6.13
Federal funds sold                          13.1     5.46         13.0     5.44
Interest-bearing deposits
     with financial institutions              .7     5.24          3.5     5.84
                                       -----------------------------------------
Total interest-earning assets              110.7     9.42         99.5     9.53

Allowance for credit losses                 (2.8)                 (3.6)
Cash and due from banks                      6.6                   5.8
Other assets                                 4.0                   7.2
                                       -----------------------------------------
                                       $   118.5             $   108.9
                                       =========================================

LIABILITIES AND
SHAREHOLDERS' EQUITY

Time deposits                          $    30.4     5.39%   $    25.6     5.23%
Savings deposits                             4.7     1.98          5.2     1.99
Interest-bearing demand deposits            31.6     1.88         32.0     1.93
Other                                        1.0    22.11          4.6    13.15
                                       -----------------------------------------
Total interest-bearing liabilities          67.7     3.71         67.4     3.96

Minority interest                            5.1                    .3
Demand deposits                             37.9                  34.5
Other liabilities                            1.3                   1.3
Shareholders' equity                         6.5                   5.4
                                       -----------------------------------------
                                       $   118.5             $   108.9
                                       =========================================
Net interest margin                                  5.71%                 5.57%
Net yield on interest-earning assets                 7.15                  6.85




                                                      (Continued)




                                       10
<PAGE>

                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                               SEPTEMBER 30, 1997



(Continued)
                                            Three Months Ended September 30,
                                               1997                  1996
                                        Average     Yields/   Average    Yields/
                                        Balance     Rates     Balance    Rates
                                       -----------------------------------------
ASSETS
Loans, net of unearned income,
     discounts and fees                $    88.3    10.54%   $    77.5    10.82%
Investment securities                       14.5     6.42          5.0     6.29
Federal funds sold                          16.1     5.45         11.1     5.47
Interest-bearing deposits
     with financial institutions              .1     6.20          3.3     5.50
                                       -----------------------------------------
Total interest-earning assets              119.0     9.35         96.9     9.79

Allowance for credit losses                 (2.7)                 (3.2)
Cash and due from banks                      7.0                   5.7
Other assets                                 4.0                   6.9
                                       -----------------------------------------
                                       $   127.3             $   106.3
                                       =========================================

LIABILITIES AND
SHAREHOLDERS' EQUITY

Time deposits                          $    33.6     5.50%   $    23.1     5.07%
Savings deposits                             4.7     2.02          5.2     1.93
Interest-bearing demand deposits            32.1     1.90         30.8     1.94
Other                                        1.0    22.30          4.2    13.58
                                       -----------------------------------------
Total interest-bearing liabilities          71.4     3.84         63.3     3.86

Minority interest                            5.4                    .9
Demand deposits                             42.5                  35.2
Other liabilities                            1.2                   1.5
Shareholders' equity                         6.8                   5.4
                                       -----------------------------------------
                                       $   127.3             $   106.3
                                       =========================================
Net interest margin                                  5.51%                 5.93%
Net yield on interest-earning assets                 7.04                  7.27





                                       11
<PAGE>

                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                               SEPTEMBER 30, 1997

The increases (decreases) in interest income and expense and net interest income
resulting from changes in average assets, liabilities and interest rates for the
1997 versus 1996 periods are summarized as follows (in thousands):

                         Nine Months Ended            Three Months Ended
                           September 30,                 September 30,
                        --------------------------------------------------------
                        Asset/     Interest           Asset/     Interest
                        Liability  Rate               Liability  Rate
                        Changes    Changes   Total    Changes    Changes   Total
                        --------------------------------------------------------
Changes in:
     Interest income    $ 841      $(130)    $ 711    $ 262      $(154)   $ 108
     Interest expense      19       (132)     (113)    (134)      (180)    (314)
                        --------------------------------------------------------
Net interest income     $ 822      $   2     $ 824    $ 396      $  26    $ 422
                        ========================================================

Loans on which the accrual of interest had been  discontinued  at September  30,
1997 and 1996 amounted to $701,000 and $1,973,000,  respectively. If these loans
had been  current  throughout  their terms,  it is  estimated  that net interest
income would have  increased by  approximately  $18,000 and $60,000 in the third
quarters of 1997 and 1996, respectively. This would have raised the net yield on
interest-earning  assets and the net interest  margin by  approximately 6 and 25
basis points during the third quarters of 1997 and 1996, respectively.

Impaired  loans have not  changed  significantly  from the  amounts  reported at
December 31, 1996 except for the changes in nonaccrual loans described above.





                                       12
<PAGE>

                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                               SEPTEMBER 30, 1997


NONPERFORMING ASSETS AND PROVISION FOR CREDIT LOSSES

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

                                         Nine Months Ended    Three Months Ended
                                           September 30,         September 30,
                                         1997       1996       1997       1996
                                       -----------------------------------------
Allowance for credit losses
     balance at beginning of period    $ 2,848    $ 3,820    $ 2,740    $ 3,093

Charge-offs                               (328)    (1,002)      (134)       (11)
Recoveries                                 295        657        209        337
                                       -----------------------------------------
Net (charge-offs) recoveries               (33)      (345)        75        326

Provision for credit losses               (144)      (236)      (144)      (180)

Other adjustments (1)                      --        (115)       --        (115)
                                       -----------------------------------------
Allowance for credit losses
     balance at end of period          $ 2,671    $ 3,124    $ 2,671    $ 3,124
                                       =========================================

(1)    Interest  collected on charged-off loans had in prior years been recorded
       as a recovery of principal on  charged-off  loans.  These amounts  should
       have been recorded to other non-interest  income.  Prior periods were not
       restated  because the recoveries  occurred over several years and are not
       material to any individual year's total loans, charge-offs or recoveries.
       An offsetting  amount is included in other operating  income for the 1996
       periods (see note 5).

All the  above  charge-offs  and  recoveries  were at  Sunwest.  The  lower  net
charge-offs during 1997 are a result of improved asset quality.

Management  believes  that the allowance for credit losses at September 30, 1997
of  $2,671,000,  or 2.73% of loans,  was  adequate to absorb  known and inherent
risks in the  Company's  credit  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  the  Southern  California  and  Orange  County
economies have recently  exhibited  positive trends,  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 credit losses and would adversely  affect the
financial condition and results of operations of the Company.





                                       13
<PAGE>

                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                               SEPTEMBER 30, 1997




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

                        September 30,  December 31,  September 30,  December 31,
                            1997           1996          1996           1995
                        --------------------------------------------------------
Nonaccrual loans         $    701       $    931      $  1,973       $  4,153
Loans 90 days past due
     and still accruing        31             43            58             25
                        --------------------------------------------------------
Nonperforming loans           732            974         2,031          4,178
Real estate owned           1,218          1,243         3,305          2,637
                        --------------------------------------------------------
Nonperforming assets     $  1,950       $  2,217      $  5,336       $  6,815
                        ========================================================
Nonperforming loans/
    Total loans               .75%          1.18%         2.61%          5.29%
Nonperforming assets/
    Total assets             1.50           2.03          5.06           6.00
                        ========================================================


Nonperforming  assets have  decreased  from $6.8 million at December 31, 1995 to
$1.9 million at September 30, 1997.  This was  accomplished  primarily from $3.3
million of real  estate  owned sales in 1996,  which  included  $2.0  million on
nonaccrual loans transferred to real estate owned during 1996.

Restructured  loans that were performing  substantially in accordance with their
modified  terms totaled  $3,080,000 at September  30, 1997.  Restructured  loans
totaling $353,000 were on nonaccrual status at September 30, 1997.

OTHER OPERATING INCOME

Other operating income decreased by $808,000 for the nine months ended September
30, 1997, as compared with the same period in 1996. See notes (1) and (5) of the
notes to consolidated  financial  statements.  The decrease was a result of West
Coast recording a $436,000 gain on sale of B&PB stock in 1996. In 1996,  Sunwest
recognized  $320,000 of interest  recoveries on loans previously  charged-off in
prior years. One individual borrower accounted for $206,000 of the recoveries.

For the three month period ended  September  30, 1997,  other  operating  income
decreased by $488,000  compared to the same period in 1996. The decrease was due
to the Sunwest  recoveries of $320,000 described above and West Coast's $149,000
gain on the sale of B&PB stock in the third quarter of 1996.






                                       14
<PAGE>

                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                               SEPTEMBER 30, 1997


OTHER OPERATING EXPENSES

Other operating  expenses have decreased  $482,000 and $120,000 for the nine and
three month  periods ended  September 30, 1997,  compared to the same periods in
1996. See notes (1) and (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):

                                      Nine Months Ended      Three Months Ended
                                         September 30,           September 30,
                                      1997        1996        1997        1996
                                  ----------------------------------------------
Other operating expenses          $   5,299   $   5,781   $   1,726   $   1,846
Other operating expenses
     (annualized)/average assets       5.96%       7.08%       5.42%       6.95%
Other operating expenses/interest
     and other operating income        63.7%       68.7%       58.7%       61.2%
                                  ==============================================

Significant  decreases  in  expenses  for the nine  month  period in 1997 are as
follows:  Net cost of operation of REO  decreased  $195,000 from lower levels of
foreclosed  assets.  Professional  services  decreased $126,000 due primarily to
lower fees and  reduced  services  from  outside  vendors.  Regulatory  fees and
assessments  declined  $112,000 due to  improvement in the condition of Sunwest.
Depreciation  and  amortization  decreased  $107,000 from assets  becoming fully
depreciated  and from closure of Sunwest's  Santa Ana facility on April 1, 1997.
Salaries  and  employee  benefits  decreased  $58,000  as  a  result  of  steady
reductions in staff.

Significant  increases included Customer service expenses increasing $74,000 due
to  increased  business  levels.  Data  processing  expenses  increased  $48,000
primarily  due to an  adjustment  received  from a vendor in 1996 and  increased
business levels in 1997. Due to actively  marketing Sunwest in the local market,
Advertising and promotion increased $35,000.

Similar trends are reflected in the three month  comparisons  with the exception
of Salaries and employee benefits and Professional services.  Third quarter 1997
increases  in  Salaries  and  employee   benefits   reflect   higher   incentive
compensation awards.  Increases in Professional services reflects the higher use
of outside consultants in the third quarter of 1997.

The Company strives to decrease  non-interest  expenses where opportunity exists
while growing the loans and deposits of the Company.

INCOME TAXES

Sunwest  recognized a tax benefit of $307,000  during the second quarter of 1997
and an additional  $23,000  during the third  quarter 1997.  The tax benefit was
recognized  after performing the quarterly  analysis of the valuation  allowance
for deferred  taxes.  The valuation  allowance was reduced because it was deemed
more likely than not that a portion of the




                                       15
<PAGE>

                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                               SEPTEMBER 30, 1997



deferred tax asset will be recognized as a benefit.  Sunwest had $4.7 million of
net deferred tax assets and  approximately  $9.2 million of net  operating  loss
carryforwards at December 31, 1996.  Excluding the Sunwest amounts,  the Company
had $4.2 million of net operating loss carryforwards at December 31, 1996.

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.  As of September 30, 1997,  Sunwest has recognized a $1,200,000
deferred  tax asset due to its improved  earnings  and  expected tax  preference
items.  Sunwest  and the  Company  may adjust the  valuation  allowance  and the
corresponding  tax benefit in earnings  in 1997 based on  increases  in expected
earnings and changes in 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 22% at September 30, 1997 and 18% at December
31, 1996. 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 nine months of 1997 West Coast did not  receive  any  dividends
from its subsidiaries.  West Coast does not expect to receive dividends from its
subsidiaries during 1997.

West Coast received $493,000 in February 1997 from the purchase price adjustment
that originated from the sale of 15 shares of Sunwest stock. No significant cash
receipts are expected for the  remainder of 1997.  At September  30, 1997,  West
Coast had cash totaling $671,000.




                                       16
<PAGE>

                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                               SEPTEMBER 30, 1997


West Coast paid $120,000 of accrued directors' fees in February 1997. These fees
were accrued for the period October 1994 through  January 1997.  Directors' fees
are now paid at the rate of $250 per director per meeting  attended.  West Coast
anticipates  other cash  expenditures  during  1997 to  consist of debt  service
payments and other operating  expenses.  West Coast's projected debt service for
the  remainder  of 1997  includes  a  quarterly  payment  on the notes  payable.
Principal  and  interest  outstanding  under  these  notes  totaled  $458,000 at
September 30, 1997.  Unpaid  principal  and interest is due June 30, 1999.  West
Coast  anticipates that other operating  expenses will be approximately  $35,000
during  1997  plus  $15,000  of  salary  to the  President  of West  Coast.  The
President's  compensation was reduced from $158,000 to $60,000  effective May 1,
1997, at which time the deferral of his salary was discontinued.  Prior deferred
salaries and incentives  payable to the President  totaled $514,000 at September
30, 1997.  This amount  cannot be paid without  approval by the Federal  Reserve
Board.  Funds to repay the notes  payable and deferred  salaries  will come from
current cash resources  supplemented  by sales of assets and possibly  dividends
from Sunwest.

CAPITAL RESOURCES AND DIVIDENDS

Sunwest  had a 12.13%,  13.39%  and  10.13%  Tier 1  risk-based  capital,  total
risk-based capital and leverage ratio at September 30, 1997, respectively. These
are above the  regulatory  minimums  of 4.00%,  8.00% and  4.00%,  respectively.
Sunwest  is  considered  "well   capitalized"   under  the  regulatory   capital
guidelines.

The Company had no material commitments for capital expenditures as of September
30, 1997.
























                                       17
<PAGE>

                       WEST COAST BANCORP AND SUBSIDIARIES
                               SEPTEMBER 30, 1997

                                     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 September 30, 1997

(b)      Reports on Form 8-K

         None










                                       18
<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/John B. Joseph                             November 14, 1997
        -----------------------------------------     ----------------------
        John B. Joseph                                Date
        Chief Executive Officer





        /s/Frank E. Smith                             November 14, 1997
        -----------------------------------------     ----------------------
        Frank E. Smith                                Date
        Chief Financial Officer

















                                       19
<PAGE>