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, 1998


             [ ] 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
                    (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 October 31, 1998:

                                    9,258,942

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



                   This document contains a total of 25 pages.



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

                                                      September 30, December 31,
(in thousands, except share data)                           1998         1997
                                                      --------------------------
ASSETS
Cash and due from bank                                   $   9,662    $   7,041
Federal funds sold                                          15,000        1,500
Interest-bearing deposits with
     financial institutions                                     --           99
Investment securities available-for-sale
     at fair value                                          19,673       17,345

Loans                                                      107,575      102,877
Less allowance for loan losses                              (2,430)      (2,364)
                                                      --------------------------
     Net loans                                             105,145      100,513
                                                      --------------------------
Real estate owned, net                                         528        1,151
Premises and equipment, net                                    567          711
Deferred taxes                                               1,330        1,153
Other assets                                                 1,036        1,108
                                                      --------------------------
                                                         $ 152,941    $ 130,621
                                                      ==========================
LIABILITIES
Deposits:
     Demand, non-interest bearing                        $  46,879    $  42,920
     Savings, money market & interest bearing demand        45,443       36,745
     Time certificates under $100,000                       23,785       22,169
     Time certificates of $100,000 or more                  19,550       13,136
                                                      --------------------------
     Total deposits                                        135,657      114,970

Other borrowed funds                                           904          779
Other liabilities                                            1,115        1,363
                                                      --------------------------
     Total liabilities                                     137,676      117,112

Commitments and contingencies
Minority interest in subsidiary                              6,832        6,041
                                                      --------------------------
SHAREHOLDERS' EQUITY
Common stock, no par value - 30,000,000
     shares authorized, 9,258,942 and 9,168,942
  shares issued and outstanding in 1998 and
  1997, respectively                                        30,274       30,176
Accumulated deficit                                        (21,823)     (22,747)
Accumulated other comprehensive income:
Net unrealized (loss) gain on available-for-sale
  investments                                                  (18)          39
                                                      --------------------------
     Total shareholders' equity                              8,433        7,468
                                                      --------------------------
                                                         $ 152,941    $ 130,621
                                                      ==========================

          (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)                        1998      1997       1998      1997
                                       -----------------------------------------
INTEREST INCOME:
Loans, including fees                    $ 7,855   $ 6,721    $ 2,693   $ 2,327
Investment securities                        842       537        316       233
Federal funds sold                           684       536        295       219
Deposits with banks                            1        26         --         2
                                       -----------------------------------------
     Total interest income                 9,382     7,820      3,304     2,781

INTEREST EXPENSE:
Interest on deposits                       2,377     1,750        847       640
Other                                        150       136         49        45
                                       -----------------------------------------
     Total interest expense                2,527     1,886        896       685
                                       -----------------------------------------
     Net interest income                   6,855     5,934      2,408     2,096

Provision for loan losses                     --      (144)        --      (144)
                                       -----------------------------------------
     Net interest income after
         provision for loan losses         6,855     6,078      2,408     2,240

Other operating income                       544       495        191       157
Other operating expenses                   5,642     5,299      1,854     1,726
Minority interest in net income
  of subsidiary                              834       783        344       329
Gain (loss) on liquidation of
  WCV, Inc.                                    1        (7)        --        (3)
                                       -----------------------------------------
     Income before income taxes              924       484        401       339

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

     Net income                          $   924   $   810    $   401   $   362
                                       =========================================

Basic and diluted earnings
  per share                              $   .10   $   .09    $   .04   $   .04
                                       =========================================

          (See accompanying notes to consolidated financial statements)


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




                                   Nine Months Ended       Three Months Ended
                                      September 30,           September 30,
(in thousands)                      1998        1997          1998      1997
                                 -----------------------------------------------
Net Income                         $ 924       $ 810        $ 401       $ 362

Other comprehensive income,
  net of tax:
  Unrealized gain/(loss) on
  available-for-sale investments
  arising during period              (57)         74          (38)         34
                                 -----------------------------------------------

Other comprehensive income (loss)    (57)         74          (38)         34
                                 -----------------------------------------------

Comprehensive income               $ 867       $ 884        $ 363       $ 396
                                 ===============================================

          (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

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

Balance at December 31, 1997    9,169  $30,176   $   39   $ (22,747)   $ 7,468
Net income                         -        -        -          924        924
Stock options exercised            90       98       -           -          98
Change in securities
  valuation allowance              -        -       (57)         -         (57)
                              --------------------------------------------------
Balance at September 30, 1998   9,259  $30,274   $  (18)  $ (21,823)   $ 8,433
                              ==================================================


CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                              Nine Months Ended
                                                                 September 30,
(in thousands)                                                 1998        1997
                                                           ---------------------
Cash flows from operating activities:
Net income                                                  $   924     $   810
Adjustments to reconcile net income to net
  cash provided by operating activities:
Depreciation and amortization                                   254         283
Provision for loan losses                                         -        (144)
Net change in receivables, payables and other assets            186        (173)
Gain on sale of real estate owned                               (10)          -
Write-downs of real estate owned                                 16          25
Minority interest expense                                       834         783
Gain (loss) on discontinued businesses                          (1)           4
                                                           ---------------------
Net cash provided by operating activities                     2,203       1,588

          (See accompanying notes to consolidated financial statements)


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

                                                              Nine Months Ended
                                                                 September 30,
(in thousands)                                                 1998        1997
                                                           ---------------------
Cash flows from investing activities:                                           
   Proceeds from maturity of interest bearing cash
     with an original maturity greater than 90 days         $    99    $  1,982
   Purchases of interest bearing deposits with
     financial institutions                                      --         (99)
   Purchase of investment securities available-for-sale      (6,096)    (13,213)
   Proceeds from maturity of investment securities
     available for sale                                       3,500       1,206
   Net increase in loans                                     (4,632)    (15,382)
   Proceeds on sale of real estate owned                        617          --
   Purchase of premises and equipment                          (131)       (101)
   Proceeds from sales of premises and equipment                 20           - 
                                                           ---------------------
   Net cash used in investing activities                     (6,623)    (25,607)

Cash flows from financing activities:

   Net increase in deposits                                  20,687      19,444
   Payments for notes payable to affiliates
     and other borrowed funds                                  (146)        (38)
                                                           ---------------------
   Net cash provided by financing activities                 20,541      19,406
                                                           ---------------------
Increase (decrease) in cash and cash equivalents             16,121      (4,613)

Beginning cash and cash equivalents                           8,541      17,346
                                                           ---------------------
Ending cash and cash equivalents                            $24,662     $12,733
                                                           =====================

Supplemental  disclosures of cash flow information:
  Cash paid during the period for:
   Interest                                                 $ 2,496     $ 1,866
   Income taxes                                                 107           4

Supplemental schedule of non-cash investing and financing activities:
 Transfer of investment security from held to maturity
   to available for sale                                    $    --     $ 2,553
 Transfer from other liabilities to
  other borrowed funds                                          475          --

          (See accompanying notes to consolidated financial statements)




                                       6
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1998
                                   (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, 1998 and 1997 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 periods financial
         statements to conform to the presentation in the current period.

(2)      RECENT ACCOUNTING PRONOUNCEMENTS

         The Company has adopted SFAS No. 130, "Reporting Comprehensive Income."
         This  statement  establishes  standards  for all entities for reporting
         comprehensive income and its components in financial  statements.  This
         statement  requires  that all items which are required to be recognized
         under  accounting  standards as components of  comprehensive  income be
         reported  in a  financial  statement  that is  displayed  with the same
         prominence as other financial statements. Comprehensive income is equal
         to net  income  plus the  change in "other  comprehensive  income",  as
         defined by SFAS No.  130.  The only  component  of other  comprehensive
         income  currently  applicable to the Company is the net unrealized gain
         or loss on available-for-sale  investments.  SFAS No. 130 requires that
         an entity:  (a) classify items of other  comprehensive  income by their
         nature in a financial statement, and (b) report the accumulated balance
         of other comprehensive income separately from common stock and retained
         earnings in the equity section of the balance sheet.  This statement is
         effective for financial  statements  issued for fiscal years  beginning
         after December 15, 1997.


                                       7
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1998
                                   (Unaudited)

(3)      EARNINGS PER SHARE

         The following is a reconciliation  of basic earnings per share (EPS) to
         diluted EPS for the nine and three months ended  September 30, 1998 and
         1997.

(dollars and shares in thousands,
 except per share amounts)  

                             Nine Months Ended            Nine Months Ended
                            September 30, 1998           September 30, 1997
                         -------------------------------------------------------
                                              Per                          Per
                            Net              Share       Net              Share
                           Income   Shares   Amount     Income   Shares   Amount
                         -------------------------------------------------------
Basic EPS:
Income available to
 common shareholders      $ 924     9,209    $ .10     $ 810     9,169    $ .09
Effect of Dilutive
 Securities:
 Stock options                         65                           --       
                         -------------------------------------------------------
Diluted EPS:
Income available to
 common shareholders
 plus assumed
 conversions              $ 924     9,274    $ .10     $ 810     9,169    $ .09
                         =======================================================



                            Three Months Ended           Three Months Ended
                            September 30, 1998           September 30, 1997
                         -------------------------------------------------------
                                              Per                          Per
                            Net              Share       Net              Share
                           Income   Shares   Amount     Income   Shares   Amount
                         -------------------------------------------------------
Basic EPS:
Income available to
 common shareholders      $ 401     9,259    $ .04     $ 362     9,169    $ .04
Effect of Dilutive
 Securities:
 Stock options                         24                           --
                         -------------------------------------------------------
Diluted EPS:
Income available to
 common shareholders
 plus assumed
 conversions              $ 401     9,283    $  .04     $ 362     9,169   $ .04
                         =======================================================


                                       8
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1998
                                   (Unaudited)

(4)      LOANS

         A summary of loans follows:

                                                    September 30,  December 31,
         (in thousands)                                  1998         1997
                                                   -----------------------------
         Real estate mortgage loans                  $  68,516     $  67,970
         Commercial loans not secured by real estate    34,798        29,425
         Personal loans not secured by real estate       4,486         5,755
         Less unearned income, discounts and fees         (225)         (273)
                                                   -----------------------------
                                                     $ 107,575     $ 102,877
                                                   =============================

(5)      OTHER OPERATING INCOME

         A summary of other operating income follows:

                                      Nine Months Ended     Three Months Ended
                                         September 30,         September 30,
         (in thousands)              1998           1997    1998           1997
                                   ---------------------------------------------
Depositor charges                    $428           $412    $152           $133
Service charges, commissions
  & fees                               69             38      34             14
Other income                           47             45       5             10
                                   ---------------------------------------------
                                     $544           $495    $191           $157
                                   =============================================


                                       9
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1998
                                   (Unaudited)


(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)                                1998      1997      1998      1997
                                          --------------------------------------
         Salaries and employee benefits    $ 2,883   $ 2,569   $  954   $   854
         Occupancy                             551       689      170       177
         Data processing                       400       360      138       118
         Customer service                      364       349      129       113
         Professional services                 255       204       97       103
         Depreciation and amortization         254       283       79        87
         Advertising and promotion             232       185       92        56
         Stationary and supplies                82        66       34        28
         Printing & postage                     79        80       25        26
         Telephone and telefax                  65        58       24        18
         Net cost of operation of REO           50        11       (3)        5
         Insurance                              30        46       10        15
         Regulatory fees and assessments        25        45        8        15
         Collection                             14        36        6         7
         Miscellaneous                         358       318       91       104

                                          --------------------------------------
                                           $ 5,642   $ 5,299   $1,854   $ 1,726
                                          ======================================


                                       10
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                               SEPTEMBER 30, 1998



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, 1998 and 1997.  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,  year
2000 issues 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, 1997.

GENERAL

The Company recorded net income of $924,000, or $.10 per share, and $401,000, or
$.04 per share,  during the nine and three months ended  September  30, 1998, as
compared with net income of $810,000,  or $.09 per share, and $362,000,  or $.04
per share, during the same respective periods in 1997. The 1997 figures included
the  effects of  recording a tax benefit of $307,000 in June 1997 and $23,000 in
September 1997. The higher pre-tax income in 1998 versus 1997 occurred primarily
because  Sunwest had higher  earnings in 1998.  Sunwest's  higher  earnings were
primarily due to increased  growth in net interest  income from growth in assets
and deposits.

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


              September 30,   December 31,   September 30,   December 31,
                  1998           1997            1997           1996
              ------------------------------------------------------------------
(in thousands)  

Total assets    $152,941        $130,621       $129,632        $108,987
Loans            107,575         102,877         98,006          82,657
Deposits         135,657         114,970        115,001          95,557



                                       11
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                               SEPTEMBER 30, 1998



The $23 million  increase in total assets from  September  30, 1997 to September
30, 1998 occurred primarily due to a $21 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 $921,000,  or 16%, during the first nine months of
1998 as compared  to the same  period in 1997.  Sunwest's  net  interest  income
increased  $954,000 due to a $1,561,000  increase in interest income,  partially
offset by a $607,000  increase in  interest  expense.  The  increase in interest
income was due to an increase in interest  earning assets offset to an extent by
a decline in the average  yield earned on such assets.  The increase in interest
expense  was due  primarily  to an  increase  in the volume of  interest-bearing
deposits,  primarily time deposits.  Net interest  margin declined from 5.71% in
1997 to 5.18% in 1998  primarily due to a decline in the  percentage of loans to
earning  assets from 78% in 1997 to 75% in 1998. An increase in time deposits as
a percentage of deposits from 29% in 1997 to 33% in 1998 also  contributed  to a
decline in the net interest margin.  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.   Recent
reductions in interest rates will lower the Company's net interest margin due to
the fact that  interest  earning  assets  exceed  interest-bearing  liabilities.
Increased  competition  in the Company's  market area for loans and deposits may
also result in a lower net interest margin.


                                       12
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                               SEPTEMBER 30, 1998



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, 1998 and 1997 (dollars in millions):


                                        Nine Months Ended September 30,
                                          1998                   1997
                                   Average     Yields/    Average     Yields/
                                   Balance     Rates      Balance     Rates
                                  ----------------------------------------------
ASSETS
Loans, net of unearned income,
     discounts and fees            $  103.0       10.17%   $   85.8       10.44%
Investment securities                  18.6        6.03        11.1        6.45
Federal funds sold                     16.5        5.53        13.1        5.46
Interest-bearing deposits
     with financial institutions         .-        7.02          .7        5.24
                                  ----------------------------------------------
Total interest-earning assets         138.1        9.06       110.7        9.42

Allowance for credit losses            (2.3)                   (2.8)
Cash and due from banks                 8.2                     6.6
Other assets                            3.7                     4.0
                                  ----------------------------------------------
                                   $  147.7                $  118.5
                                  ==============================================

LIABILITIES AND
SHAREHOLDERS' EQUITY

Time deposits                      $   43.6        5.42%   $   30.4        5.39%
Savings deposits                        5.0        1.98         4.7        1.98
Interest-bearing demand deposits       37.2        1.89        31.6        1.88
Other                                   1.0       20.76         1.0       22.11
                                  ----------------------------------------------
Total interest-bearing liabilities     86.8        3.88        67.7        3.71

Minority interest                       6.4                     5.1
Demand deposits                        45.4                    37.9
Other liabilities                       1.1                     1.3
Shareholders' equity                    8.0                     6.5
                                  ----------------------------------------------
                                   $  147.7                $  118.5
                                  ==============================================
Net interest margin                                5.18%                   5.71%
Net yield on interest-earning assets               6.62                    7.15


                                       13
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                               SEPTEMBER 30, 1998



(Continued)
                                       Three Months Ended September 30,
                                          1998                   1997
                                   Average     Yields/    Average     Yields/
                                   Balance     Rates      Balance     Rates
                                  ----------------------------------------------
ASSETS
Loans, net of unearned income,
     discounts and fees            $  106.8       10.08%   $   88.3       10.54%
Investment securities                  19.8        6.38        14.5        6.42
Federal funds sold                     21.0        5.61        16.1        5.45
Interest-bearing deposits
     with financial institutions         .0        0.00          .1        6.20
                                  ----------------------------------------------
Total interest-earning assets         147.6        8.95       119.0        9.35

Allowance for credit losses            (2.4)                   (2.7)
Cash and due from banks                 8.8                     7.0
Other assets                            3.4                     4.0
                                  ----------------------------------------------
                                   $  157.4                $  127.3
                                  ==============================================

LIABILITIES AND
SHAREHOLDERS' EQUITY

Time deposits                      $   46.2        5.39%   $   33.6        5.50%
Savings deposits                        5.1        1.98         4.7        2.02
Interest-bearing demand deposits       40.8        1.95        32.1        1.90
Other                                   1.0       19.25         1.0       22.30
                                  ----------------------------------------------
Total interest-bearing liabilities     93.1        3.85        71.4        3.84

Minority interest                       6.6                     5.4
Demand deposits                        48.3                    42.5
Other liabilities                       1.1                     1.2
Shareholders' equity                    8.3                     6.8
                                  ----------------------------------------------
                                   $  157.4                $  127.3
                                  ==============================================
Net interest margin                                5.10%                   5.51%
Net yield on interest-earning assets               6.52                    7.04


                                       14
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                               SEPTEMBER 30, 1998

The increases (decreases) in interest income and expense and net interest income
resulting from changes in average assets, liabilities and interest rates for the
1998 versus 1997 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    $1,763   $ (201)   $1,562   $  623   $ (100)   $  523
     Interest expense      612       29       641      212       (1)      211
                      ----------------------------------------------------------
Net interest income     $1,151   $ (230)   $  921   $  411   $  (99)   $  312
                      ==========================================================

Loans on which the accrual of interest had been  discontinued  at September  30,
1998 and 1997 amounted to $1,632,000 and $701,000,  respectively. If these loans
had been  current  throughout  their terms,  it is  estimated  that net interest
income would have  increased by  approximately  $25,000 and $18,000 in the third
quarters of 1998 and 1997, respectively. This would have raised the net yield on
interest-earning  assets and the net interest  margin by  approximately  7 and 6
basis points during the third quarters of 1998 and 1997, respectively.

Impaired  loans have not  changed  significantly  from the  amounts  reported at
December 31, 1997.


                                       15
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                               SEPTEMBER 30, 1998


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):

                                       Nine Months Ended     Three Months Ended
                                          September 30,         September 30,
                                        1998       1997       1998       1997
                                     -------------------------------------------
Allowance for loan losses
     balance at beginning of period   $ 2,364    $ 2,848    $ 2,393    $ 2,740

Charge-offs                               (37)      (328)       (14)      (134)
Recoveries                                103        295         51        209
                                     -------------------------------------------
Net recoveries (charge-offs)               66        (33)        37         75

Provision for loan losses                  --       (144)        --       (144)
                                     -------------------------------------------
Allowance for loan losses
     balance at end of period         $ 2,430    $ 2,671    $ 2,430    $ 2,671
                                     ===========================================

All of the above charge-offs and recoveries were at Sunwest.  The net recoveries
during the nine and three  months  ended in 1998 are a result of improved  asset
quality and the high levels of charge-offs in previous years.

Management  believes that the allowance for loan losses at September 30, 1998 of
$2,430,000 or 2.26% 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 the Southern  California and Orange County economies have
exhibited positive trends in the past few 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.


                                       16
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                               SEPTEMBER 30, 1998




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

                     September 30,   December 31,   September 30,   December 31,
                         1998            1997           1997            1996
                     -----------------------------------------------------------
Nonaccrual loans        $  1,632    $      --         $    701       $    931
Loans 90 days past due
     and still accruing        2           31               31             43
                     -----------------------------------------------------------
Nonperforming loans        1,634           31              732            974
Real estate owned            528        1,151            1,218          1,243
                     -----------------------------------------------------------
Nonperforming assets    $  2,162    $   1,182         $  1,950       $  2,217
                     ===========================================================
Nonperforming loans/
    Total loans             1.52%         .03%             .75%          1.18%
Nonperforming assets/
    Total assets            1.41          .90             1.50           2.03
                     ===========================================================


Nonperforming  assets have increased  approximately $1 million from December 31,
1997.  The  increase is due  primarily to one loan placed on  nonaccrual  in the
second quarter.  The loan is expected to be placed back on accrual status during
fourth quarter of 1998.

Restructured  loans that were performing  substantially in accordance with their
modified terms totaled  $3,027,000 at September 30, 1998. No restructured  loans
were on nonaccrual status at September 30, 1998.

OTHER OPERATING INCOME

Other operating  income increased by $49,000 for the nine months ended September
30, 1998, as compared with the same period in 1997. See note (5) of the notes to
consolidated financial statements.


                                       17
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                               SEPTEMBER 30, 1998


OTHER OPERATING EXPENSES

Other operating expenses increased $343,000 from the nine months ended September
30, 1997 to the same period in 1998  primarily due to salary  expense.  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):

                                    Nine Months Ended     Three Months Ended
                                       September 30,         September 30,
                                     1998       1997       1998        1997
                                  ----------------------------------------------
Other operating expenses           $ 5,642    $ 5,299    $ 1,854    $ 1,726
Other operating expenses
     (annualized)/average assets      5.09%      5.96%      4.71%      5.42%
Other operating expenses/interest
     and other operating income       56.8%      63.7%      53.1%      58.7%
                                  ==============================================

The decline in the other  expense  ratios is primarily a result of the increases
in assets and income exceeding the increase in expenses. As the Company grows it
is likely that operating  expenses will also increase.  The Company is currently
planning to engage an outside  consultant to assist the Company in reviewing all
significant  business  processes during 1999. The purpose of this review will be
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 $150,000. 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.

YEAR 2000 ISSUE

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


                                       18
<PAGE>
                    WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                               SEPTEMBER 30, 1998

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's  plan is to have  renovation  largely
completed for mission-critical  applications by the end of 1998. This will allow
for broad testing and clean-up well before the year 2000. 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,  plans  have been
developed  and are being  implemented  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 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.

Risk assessment and customer  readiness - Business failures of key borrowers and
depositors  could  adversely  impact the  Company.  The Company has  developed 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


                                       19
<PAGE>
                    WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                               SEPTEMBER 30, 1998

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
and the Company's plan is to have testing largely completed for mission-critical
applications  by the end of 1998.  This will allow for  renovation  and clean-up
well before the year 2000.  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 that goal. 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:

-Established a Year 2000 Project Team led by senior management
-Completed inventory of application and system software and hardware
-Completed an inventory of infrastructure facilities
-Developed consolidated compliance plans and schedules for business areas
-Built databases for inventory tracking and reporting
-Developed a database to log and track resolution of reported Y2K problems
-Established budget and cost tracking systems
-Implemented broad awareness and education activities for employees
-Developed and implemented a customer inquiry response process
-Implemented vendor compliance verification
-Obtained readiness reports from 97% of mission critical vendors
-Mandated that all new and renewed contracts address Y2K compliance issues
-Set up a dedicated test environment to simulate year 2000 conditions
-Developed test scripts for 98% of all mission critical applications
-Completed testing for 61% of all mission critical applications
-Assessed 100% of all critical customers
-Determined  that 22% of loan  customers  are large  enough to  require  ongoing
 review
-Developed a process for communicating Y2K impacts to customers, correspondents,
agencies,  and vendors -Developed a plan to address  contingency  implementation
dates when remediation does not proceed as planned

COST OF YEAR 2000 READINESS - The Company currently estimates that it will incur
additional  incremental  out-of-pocket  costs of  about  $200,000.  These  costs
include  equipment and software  purchases  that may be amortized for up to five


                                       20
<PAGE>
                    WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                               SEPTEMBER 30, 1998

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 will be 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  $26,000 through  September 30, 1998. 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  did not  recognize  any income tax expense or benefit
during the nine and three months ended September 30, 1998.  Sunwest recognized a
tax benefit of  $307,000  and  $23,000  during the second and third  quarters of
1997,  respectively.  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 deferred tax asset will be recognized as a benefit.

Sunwest  had $3.1  million of net  deferred  tax assets and  approximately  $7.3
million of net operating loss carryforwards at December 31, 1997.  Excluding the
Sunwest   amounts,   the  Company  had  $3.8  million  of  net  operating   loss
carryforwards at December 31, 1997.

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


                                       21
<PAGE>
                    WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                               SEPTEMBER 30, 1998

allowance was  established due to uncertainty of future earnings at both Sunwest
and the Company.  As of December 31, 1997, Sunwest has recognized a $1.2 million
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 1998 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 25% at September 30, 1998 and 16% at December
31, 1997. 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 1998 West Coast did not  receive  any  dividends
from its subsidiaries.  West Coast does not expect to receive dividends from its
subsidiaries during 1998.

At September 30, 1998, West Coast had cash and short term  investments  totaling
$445,000. No significant cash receipts are expected for the remainder of 1998.

West Coast anticipates cash expenditures  during 1998 to consist of debt service
payments and other operating  expenses.  West Coast's projected debt service for
the remainder of 1998 is expected to total $64,000.  West Coast anticipates that
other operating  expenses will be approximately  $26,000 during the remainder of
1998.   Funds  to  meet  cash  needs  will  come  from  current  cash  resources
supplemented by sales of assets and possibly dividends from Sunwest.


                                       22
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                               SEPTEMBER 30, 1998

CAPITAL RESOURCES AND DIVIDENDS

Sunwest  had a  12.48%,  13.73%  and  9.85%  Tier 1  risk-based  capital,  total
risk-based capital and leverage ratio at September 30, 1998, respectively.  West
Coast Bancorp had a 12.33%,  13.58% and 9.71% Tier 1 risk-based  capital,  total
risk-based capital and leverage ratio at September 30, 1998, respectively. These
are above the regulatory minimums of 4.00%, 8.00% and 4.00%, respectively.  West
Coast Bancorp and Sunwest are considered "well capitalized" under the regulatory
capital guidelines.

The Company had no material commitments for capital expenditures as of September
30, 1998.


                                       23
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                               SEPTEMBER 30, 1998

                                     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
-----------------------------------------------------------------
West Coast Bancorp held its Annual Meeting of  Shareholders  (the  "Meeting") on
August 25, 1998.

At the Meeting,  the  following  individuals  were elected to serve as directors
until the 1999 Annual  Meeting of  Shareholders  and until their  successors are
elected and have qualified:

                                              Authority
Name of Director           Votes For          Withheld

Eric D. Hovde              5,969,945          149,035
Thomas A. Jones            6,006,235          112,745
John B. Joseph             5,798,344          320,636
James G. LeSieur, III.     5,974,860          144,120
Ronald R. White            5,829,854          289,126


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

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

         Exhibit 27 - Financial Data Schedule for September 30, 1998

(b)      Reports on Form 8-K

         None


                                       24
<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                              November 13, 1998
        ----------------------------------------      ----------------------
        Eric D. Hovde                                 Date
        Chief Executive Officer





        /s/Frank E. Smith                             November 13, 1998
        -----------------------------------------     ----------------------
        Frank E. Smith                                Date
        Chief Financial Officer


                                       25
<PAGE>