WEST COAST BANCORP AND SUBSIDIARIES

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

                                   FORM 10-QSB

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

                  For the quarterly period ended March 31, 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 April 30, 1997:

                                    9,168,942

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


                      This document contains a total of 18 pages.


                                      -1-
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                                   (Unaudited)
                                                         March 31,  December 31,
(in thousands, except share data)                          1997         1996 
                                                         -----------------------
ASSETS
Cash and due from bank                                    $   6,838   $   7,246
Interest-bearing deposits with
     financial institutions                                     793       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                                            9,448       2,680
Federal funds sold                                            7,400      10,100

Loans                                                        86,949      82,657
Less allowance for credit losses                             (2,887)     (2,848)
                                                         -----------------------
     Net loans                                               84,062      79,809
                                                         -----------------------
Real estate owned, net                                        1,243       1,243
Premises and equipment, net                                     807         932
Refundable and deferred taxes                                   870         870
Other assets                                                  1,009       1,518
                                                         -----------------------
                                                          $ 112,470   $ 108,987
                                                         =======================
LIABILITIES
Deposits:
     Demand, non-interest bearing                         $  34,470   $  33,983
     Savings, money market & interest
       bearing demand                                        35,655      34,342
     Time certificates under $100,000                        20,613      18,260
     Time certificates of $100,000 or more                    8,935       8,972
                                                         -----------------------
     Total deposits                                          99,673      95,557

Other borrowed funds                                            822         834
Other liabilities                                               971       1,642
                                                         -----------------------
     Total liabilities                                      101,466      98,033

Commitments and Contingencies
Minority interest in subsidiary                               4,866       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                                  (59)        (25)
Accumulated deficit                                         (23,979)    (24,016)
                                                         -----------------------
     Total shareholders' equity                               6,138       6,135
                                                         -----------------------
                                                          $ 112,470   $ 108,987
                                                         =======================

          (See accompanying notes to consolidated financial statements)


                                      -2-
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)




                                                    Three Months Ended
(in thousands,                                           March 31,
 except share data)                                  1997        1996
                                                   ---------------------
INTEREST INCOME
Loans, including fees                              $ 2,147     $ 2,032  
Investment securities                                  114         118
Deposits with banks                                     20          62
Federal funds sold                                     144         177
                                                   ---------------------
     Total interest income                           2,425       2,389

INTEREST EXPENSE
Interest on deposits                                   519         571
Other                                                   46         151
                                                   ---------------------       
     Total interest expense                            565         722
                                                   ---------------------       
     Net interest income                             1,860       1,667

Provision for credit losses                             --         (14)
                                                   ---------------------       
     Net interest income after
     provision for credit losses                     1,860       1,681

Other operating income                                 171         282
Other operating expenses                             1,901       1,919
(Loss) gain on liquidation of WCV, Inc.                 (1)        122
Minority interest expense                               92          --
Loss on sale of Sunwest shares                          --         437
                                                   ---------------------       
     Income (loss) before income taxes                  37        (271)

Income taxes                                            --          --
                                                   ---------------------       

     Net income (loss)                             $    37     $  (271)
                                                   =====================

Net income (loss) per common share                 $   . -     $  (.03)
                                                   =====================       

Weighted average number of common
     and shares outstanding                          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                        -          -         -           37        37
Change in securities
  valuation allowance             -          -       (34)           -       (34)
                              --------------------------------------------------
Balance at March 31, 1997     9,169  $  30,176  $    (59)   $ (23,979) $  6,138
                              ==================================================


CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                           Three Months Ended
                                                                March 31,
(in thousands)                                             1997          1996
                                                         -----------------------
Cash flows from operating activities:
   Net income (loss)                                     $    37    $      (271)
   Adjustments to reconcile net income (loss) to net
     cash provided by operating activities:
   Depreciation and amortization                             104            139
   Provision (benefit) for credit losses                       -            (14)
   Net change in receivables, payables and other assets     (215)            42
   Write-downs of real estate owned                            -             71
   Minority interest expense                                  92              -
   Loss (gain) on discontinued businesses                      1           (122)
   Gain on sale of B&PB shares                                 -            (93)
   Expected loss on sale of Sunwest shares                     -            437
                                                         -----------------------
   Net cash provided by operating activities                  19            189
                                                         

                                                                     (Continued)


          (See accompanying notes to consolidated financial statements)


                                      -4-
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

                                                              Three Months Ended
(in thousands)                                                     March 31,
                                                              1997          1996
Cash flows from investing activities:                     ----------------------
   Proceeds from maturity of interest bearing cash
     with an original maturity greater than 90 days       $   1,288    $    788
   Purchases of interest bearing cash                           (99)       (496)
   Proceeds from maturity of investment securities
     held to maturity                                             -       2,536
   Purchase of investment securities available for sale      (4,455)     (1,988)
   Proceeds from maturity of investment securities
     available for sale                                         294           -
   Net (increase) decrease in loans                          (4,253)      1,919
   Proceeds from sales of real estate owned                       -          96
   Purchase of premises and equipment                            (6)        (51)
                                                          ----------------------
   Net cash (used in) provided by investing activities       (7,231)      2,804

Cash flows from financing activities:
   Net increase (decrease) in deposits                        4,116      (4,788)
   Proceeds from sale of B&PB stock                               -         407
   Payments for notes payable to affiliates,
     subordinated debt and other borrowed funds                 (12)        (41)
   Loan proceeds from affiliate                                   -          18
                                                          ----------------------
   Net cash provided by (used in) financing activities        4,104      (4,404)
                                                          ----------------------
(Decrease) increase in cash and cash equivalents             (3,108)      1,411

Beginning cash and cash equivalents                          17,346      21,907
                                                          ----------------------
Ending cash and cash equivalents                          $  14,238    $ 20,496
                                                          ======================
                                                                                
Supplemental  disclosures of cash flow information:
   Cash paid during the period for:
     Interest                                             $     557    $    728
     Income taxes                                                 -           -

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                       -         672
     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
                                 MARCH 31, 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
         periods ended March 31, 1997 and 1996 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.

(2)      RECLASSIFICATIONS

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

(3)      NET INCOME (LOSS) PER SHARE

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

(4)      LOANS

         A summary of loans follows:

                                                        March 31,   December 31,
         (in thousands)                                   1997          1996
                                                        ------------------------
         Real estate mortgage loans                     $ 59,699       $ 54,938
         Commercial loans not secured by real estate      24,875         25,300
         Personal loans not secured by real estate         2,701          2,728
         Less unearned income, discounts and fees           (326)          (309)
                                                        ------------------------
                                                        $ 86,949       $ 82,657
                                                        ========================


                                      -6-
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 1997
                                   (Unaudited)



(5)      OTHER OPERATING INCOME

         A summary of other operating income follows:

                                                            Three Months Ended
                                                                  March 31,
         (in thousands)                                     1997           1996
                                                       -------------------------
         Depositor charges                             $      142     $     150
         Service charges, commissions & fees                   11            12
         Gain on sale of B&PB stock                             -            93
         Other income                                          18            27
                                                       -------------------------
                                                       $      171     $     282
                                                       =========================


(6)      OTHER OPERATING EXPENSES

         A summary of other operating expenses is as follows:

                                                            Three Months Ended
                                                                  March 31,
         (in thousands)                                     1997           1996
                                                         -----------------------
         Salaries and employee benefits                  $    889     $     919
         Occupancy                                            300           229
         Depreciation and amortization                        104           139
         Customer service                                     119            93
         Data processing                                      117            58
         Advertising and promotion                             67            37
         Professional services                                 48            87
         Director fees                                         39            17
         Printing & postage                                    23            30
         Telephone and telefax                                 23            21
         Stationary and supplies                               19            37
         Regulatory fees and assessments                       15            48
         Net cost of operation of real estate owned             4            68
         Miscellaneous                                        134           136
                                                         -----------------------
                                                         $  1,901     $   1,919
                                                         =======================


                                      -7-
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                                 MARCH 31, 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
three month periods ended March 31, 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  Reform Act of 1995 which
involve  risk  and  uncertainties.  The  Company's  actual  results  may  differ
significantly  from the results  discussed in such  forward-looking  statements.
Factors  that  might  cause such a  difference  include  but are not  limited to
economic  conditions,  competition in the geographic and business areas in which
the Company  conducts its operations,  fluctuations  in interest  rates,  credit
quality and government  regulation.  For additional information concerning these
factors, see "Item 1. Business - Summary of Business  Considerations and Certain
Factors  that May  Affect  Future  Results of  Operations  and/or  Stock  Price"
contained  in the  Company's  Annual  Report on Form  10-KSB  for the year ended
December 31, 1996.

GENERAL

The  Company  recorded  net  income of  $37,000,  or less than 1 cent per share,
during  the three  months  ended  March 31,  1997,  as  compared  with a loss of
$271,000,  or $.03 per share, during the same period in 1996. The income in 1997
versus the loss in 1996 occurred  primarily  because Sunwest had higher earnings
and West Coast had no interest  expense  from the 10%  convertible  subordinated
debentures that were repaid in October 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:


                           March 31,   December 31,   March 31,   December 31,
                             1997         1996          1996         1995
(in thousands)           -----------------------------------------------------
Total assets             $ 112,470     $ 108,987      $ 109,171   $ 113,654
Loans                       86,949        82,657         76,528      79,000
Deposits                    99,673        95,557         97,874     102,662


The $10  million  increase  in loans  from  March 31,  1996 to March  31,  1997,
occurred  from the  increased  marketing  effort  and  improved  loan  demand in
Sunwest's market area.


                                      -8-
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                                 MARCH 31, 1997


RESULTS OF OPERATIONS

GENERAL
Net income was $37,000 for the quarter ended March 31, 1997,  compared to a loss
of $271,000 for the same period in 1996.  The increase in 1997 first quarter net
income  resulted  from a $76,000  increase in earnings at its 56.5 percent owned
subsidiary,  Sunwest  Bank and $103,000 of lower  interest  expense from reduced
debt levels at West Coast. These increases were offset by recognition of $92,000
of minority  interest  expense in Sunwest  earnings  resulting  from the sale of
Sunwest  shares in September  1996,  and certain  non-recurring  items  recorded
during 1996. The 1996 non-recurring items consisted of a $437,000 estimated loss
on the sale of Sunwest shares, a $122,000 gain on liquidation of a subsidiary of
West Coast (WCV, Inc.) resulting from a reimbursement received from the State of
California's  Underground  Storage Tank Cleanup Fund,  and a $93,000 gain on the
sale of Business & Professional Bank stock.

NET INTEREST INCOME
Net interest income increased  $193,000 or 12% from the first quarter of 1996 to
the same period in 1997. Sunwest increased its net interest income by $84,000 by
increasing  interest  income  $36,000  from an  increase  in loans (the  highest
yielding  earning asset) and decreasing  interest expense $48,000 from lower use
of time deposits  (the highest cost  deposits) as a funding  source.  West Coast
increased  its  net  interest  income  by  $109,000  from  paying  off  its  10%
subordinated debentures and other notes payable in October 1996.


                                      -9-
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                                 MARCH 31, 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 three  month  periods  ended
March 31, 1997 and 1996 (dollars in millions):



                                             1997                 1996
                                       Average   Yields/    Average   Yields/
                                       Balance   Rates      Balance   Rates
                                       --------------------------------------
ASSETS
Loans, net of unearned income,
     discounts and fees                $  83.3   10.30%     $  77.0   10.55%
Investment securities                      7.2    6.36          7.9    6.00
Federal funds sold                        10.8    5.30         12.9    5.49
Interest-bearing deposits
     with financial institutions           1.5    5.31          3.9    6.43
                                       --------------------------------------
Total interest-earning assets            102.8    9.43        101.7    9.40

Allowance for credit losses               (2.8)                (3.9)
Cash and due from banks                    6.3                  5.8
Other assets                               4.1                  6.9
                                       --------------------------------------
                                       $ 110.4              $ 110.5
                                       ======================================

LIABILITIES AND
SHAREHOLDERS' EQUITY

Time deposits                          $  27.0    5.25%     $  28.5    5.41%
Savings deposits                           4.7    1.92          5.0    1.99
Interest-bearing demand deposits          30.5    1.85         32.7    1.97
Other                                      1.0   22.17          4.6   13.19
                                       --------------------------------------  
Total interest-bearing liabilities        63.2    3.57         70.8    4.08

Minority interest                          4.8                   .-
Demand deposits                           34.5                 33.3
Other liabilities                          1.6                  1.0
Shareholders' equity                       6.3                  5.4
                                       --------------------------------------   
                                       $ 110.4              $ 110.5
                                       ======================================   
Net interest margin                               5.85%                5.32%
Net yield on interest-earning assets              7.23                 6.56


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

                                                  Three Months Ended March 31,
                                                  ------------------------------
                                                  Asset/     Interest
                                                  Liability  Rate
                                                  Changes    Changes    Total
                                                  ------------------------------
Changes in:
     Interest income                              $   92     $  (56)    $   36
     Interest expense                                (84)       (73)      (157)
                                                  ------------------------------
Net interest income                               $  176     $   17     $  193
                                                  ==============================

The  increase in net interest  income  resulted  primarily  from volume and rate
declines in average  interest  bearing  liabilities.  These declines were caused
primarily by West Coast paying off its subordinated debentures and notes payable
to affiliates, and Sunwest decreasing its use of time deposits (the highest cost
deposits)  as a  funding  source.  The net  interest  margin  and net  yield  on
interest-earning assets increased 53 and 67 basis points,  respectively from the
items described above.

Loans on which the accrual of interest had been  discontinued  at March 31, 1997
and 1996 amounted to $1,001,000 and $3,903,000, respectively. If these loans had
been current  throughout  their terms,  it is estimated that net interest income
would have increased by approximately $12,000 and $116,000 in the first quarters
of 1997  and  1996,  respectively.  This  would  have  raised  the net  yield on
interest-earning  assets and the net interest  margin by  approximately 5 and 46
basis points during the first quarters of 1997 and 1996, respectively.

Impaired  loans have not  changed  significantly  from the  amounts  reported at
December 31, 1996.


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

                                                        Three Months Ended
                                                              March 31,
                                                        1997           1996
                                                     --------------------------
Allowance for credit losses
     balance at beginning of period                  $ 2,848        $ 3,820

Charge-offs                                               (5)           (48)
Recoveries                                                44            167
                                                     --------------------------
Net recovery                                              39            119

Provision (benefit) for credit losses                      -            (14)
                                                     --------------------------
Allowance for credit losses
     balance at end of period                        $ 2,887        $ 3,925
                                                     ==========================

All the above  charge-offs  and recoveries  were at Sunwest.  The net recoveries
during the first  quarters 1997 and 1996 are a result of improved  asset quality
and the high levels of charge-offs in previous years.

Management  believes  that the  allowance for credit losses at March 31, 1997 of
$2,887,000 or 3.32% 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  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.


                                      -12-
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                                 MARCH 31, 1997



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

                           March 31,   December 31,   March 31,   December 31,
                             1997          1996         1996           1995
                           -------------------------------------------------
Nonaccrual loans           $ 1,001     $   931        $ 3,903     $ 4,153
Loans 90 days past due
     and still accruing         49          43             28          25
                           -------------------------------------------------
Nonperforming loans          1,050         974          3,931       4,178
Real estate owned            1,243       1,243          3,138       2,637
                           -------------------------------------------------
Nonperforming assets       $ 2,293     $ 2,217        $ 7,069     $ 6,815
                           =================================================
Nonperforming loans/
    Total loans               1.21%       1.18%          5.14%       5.29%
Nonperforming assets/
    Total assets              2.04        2.03           6.48        6.00
                           =================================================


Nonperforming  assets have  decreased  from $6.8 million at December 31, 1995 to
$2.3  million  at March 31,  1997.  This was  accomplished  primarily  from $3.2
million of real  estate  owned sales in 1996,  which  included  $2.0  million of
nonaccrual loans transferred to real estate owned during 1996.

Restructured  loans that were performing  substantially in accordance with their
modified terms totaled $3,103,000 at March 31, 1997. Restructured loans totaling
$554,000 were on nonaccrual status at March 31, 1997.

OTHER OPERATING INCOME

Other  operating  income  decreased by $111,000 for the three months ended March
31, 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 $93,000 gain on sale of B&PB stock in 1996.


                                      -13-
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                                 MARCH 31, 1997


OTHER OPERATING EXPENSES

Other  operating  expenses have  remained  relatively  unchanged  from the three
months ended March 31, 1996 to the same period in 1997. 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):

                                                    Three Months Ended
                                                         March 31,
                                                    1997           1996
                                                    ----------------------
Other operating expenses                            $ 1,901     $ 1,919

Other operating expenses
  (annualized)/average assets                          6.88%       6.95%
Other operating expenses/interest
   and other operating income                          73.2%       71.8%
                                                    ======================

While  total  operating  expenses  remained  relatively   unchanged,   the  most
significant decreases are as follows: net cost of operation of real estate owned
decreased $64,000 from lower levels of foreclosed assets,  professional services
decreased  $39,000 due  primarily to resolving a billing  dispute with a vendor,
and  depreciation & amortization  decreased  $35,000 from assets  becoming fully
depreciated.   The  most  significant   increases  included  occupancy  expenses
increasing  $71,000 from recording  $56,000 of estimated future subleases losses
during the quarter  ended March 31, 1997.  These losses were a result of Sunwest
subleasing  excess space to  unaffiliated  parties.  Total costs from  Sunwest's
lease with its landlord,  tenant improvement costs, commissions for the sublease
and expected  maintenance costs for the sublease period exceeded expected rental
income on the subleases.  Data processing  expenses  increased $59,000 primarily
due to an adjust received from a vendor in 1996.

The Company strives to decrease  non-interest  expenses where opportunity exists
while  growing the loans and  deposits of the  Company.  Occupancy  expenses are
expected to decrease  from the closure of the Santa Ana  facility on April 1 and
from additional sublease rental income during the remainder of 1997.

INCOME TAXES

The Company and Sunwest did not recognize any significant  income tax expense or
benefit  during the three months ended March 31, 1997 or 1996.  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.


                                      -14-
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                                 MARCH 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
allowance was  established due to uncertainty of future earnings at both Sunwest
and the Company.  At December 31, 1996,  Sunwest  recognized a $870,000 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 20% at March 31, 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 quarter 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 March 31, 1997,  West Coast
had cash totaling $782,000.


                                      -15-
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                                 MARCH 31, 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  quarterly  payments  on the notes  payable of
$12,000  each.  Principal  and interest  outstanding  under these notes  totaled
$468,000 at March 31, 1997.  Unpaid  principal and interest is also due June 30,
1999. West Coast anticipates that other operating expenses will be approximately
$100,000 during the remainder of 1997 plus $40,000 of salary to the President of
West Coast.  The President's  salary and incentives was reduced from $158,000 to
$60,000  effective May 1, 1997, at which time the deferral of his salary will be
discontinued.  Prior deferred  salaries and incentives  payable to the President
totaled  $514,000 at April 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 12.72%,  13.99%  and  10.25%  Tier 1  risk-based  capital,  total
risk-based capital and leverage ratio at March 31, 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 March 31,
1997.


                                      -16-
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                                 MARCH 31, 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 March 31, 1997

(b)      Reports on Form 8-K

         None


                                      -17-
<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                                 May 13, 1997
        -----------------------------------------         ----------------------
        John B. Joseph                                    Date
        Chief Executive Officer





        /s/Frank E. Smith                                 May 13, 1997
        -----------------------------------------         ----------------------
        Frank E. Smith                                    Date
        Chief Financial Officer


                                      -18-
<PAGE>