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 June 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)

                          4770 Campus Drive, Suite 250
                      Newport Beach, California 92660-1833
              (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 July 31, 1998:

                                    9,258,942

             Transitional Small Business Disclosure Format Yes No X
                                                                                



This document contains a total of 21 pages.



                                       1
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                                   (Unaudited)
                                                        June 30,    December 31,
(in thousands, except share data)                         1998          1997
                                                      --------------------------
ASSETS
Cash and due from bank                                 $   9,694      $   7,041
Federal funds sold                                        15,450          1,500
Interest-bearing deposits with
     financial institutions                                 --               99
Investment securities available-for-sale
     at fair value                                        19,692         17,345

Loans                                                    109,809        102,877
Less allowance for loan losses                            (2,393)        (2,364)
                                                      --------------------------
     Net loans                                           107,416        100,513
                                                      --------------------------
Real estate owned, net                                       528          1,151
Premises and equipment, net                                1,338            711
Deferred taxes                                             1,280          1,153
Other assets                                                 428          1,108

                                                       $ 155,826      $ 130,621
                                                      --------------------------
LIABILITIES
Deposits:
     Demand, non-interest bearing                      $  48,189      $  42,920
     Savings, money market & interest bearing demand      44,270         36,745
     Time certificates under $100,000                     27,377         22,169
     Time certificates of $100,000 or more                19,341         13,136
                                                      --------------------------
     Total deposits                                      139,177        114,970

Other borrowed funds                                       1,234            779
Other liabilities                                            828          1,363
                                                      --------------------------
     Total liabilities                                   141,239        117,112

Commitments and contingencies
Minority interest in subsidiary                            6,517          6,041
                                                      --------------------------
SHAREHOLDERS' EQUITY
Common stock, no par value - 30,000,000
     shares authorized, 9,168,942 shares
     issued and outstanding in 1997 and 1996              30,274         30,176
Accumulated deficit                                      (22,224)       (22,747)
Accumulated other comprehensive income:
Net unrealized gain on available-for-sale
investments                                                   20             39
                                                      --------------------------
     Total shareholders' equity                            8,070          7,468
                                                      --------------------------
                                                       $ 155,826      $ 130,621
                                                      ==========================

          (See accompanying notes to consolidated financial statements)


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



                                        Six Months Ended    Three Months Ended
(in thousands,                               June 30,             June 30,
 except share data)                       1998      1997       1998       1997
                                       -----------------------------------------
INTEREST INCOME:
Loans, including fees                   $ 5,161   $ 4,393    $ 2,588    $ 2,246
Investment securities                       526       305        284        191
Federal funds sold                          389       318        220        174
Deposits with banks                           1        25         --          5
                                       -----------------------------------------
     Total interest income                6,077     5,041      3,092      2,616

INTEREST EXPENSE:
Interest on deposits                      1,529     1,110        801        591
Other                                       101        91         52         45
                                       -----------------------------------------
     Total interest expense               1,630     1,201        853        636
                                       -----------------------------------------
     Net interest income                  4,447     3,840      2,239      1,980

Provision for loan losses                    --        --         --         --
                                       -----------------------------------------
     Net interest income after
         provision for loan losses        4,447     3,840      2,239      1,980

Other operating income                      353       338        172        167
Other operating expenses                  3,788     3,573      1,928      1,672
Minority interest in net income
  of Subsidiary                             490       454        233        362
Gain (loss) on liquidation of
   WCV, Inc.                                  1        (4)        (1)        (3)
                                       -----------------------------------------
     Income before income taxes             523       147        249        110

Income tax expense                           --      (301)        --       (301)
                                       -----------------------------------------

     Net income                         $   523   $   448    $   249    $   411
                                       =========================================

Basic and diluted earnings
  per share                             $   .06   $   .05    $   .03    $   .04
                                       =========================================







          (See accompanying notes to consolidated financial statements)


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




                                         Six Months Ended   Three Months Ended
                                              June 30,           June 30,
(in thousands)                             1998      1997     1998      1997
                                        ----------------------------------------
Net Income                                $ 523     $ 448    $ 249     $ 411

Other comprehensive income,
  net of tax:
  Unrealized gain/(loss) on
  available-for-sale investments
  arising during period                     (19)       40      (13)       74
                                        ----------------------------------------

Other comprehensive income (loss)           (19)       40      (13)       74
                                        ----------------------------------------

Comprehensive income                      $ 504     $ 488    $ 236     $ 485
                                        ========================================








          (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                         --       --       --         523        523
Stock options exercised            90       98       98
Change in securities
  valuation allowance              --       --      (19)         --        (19)
                               -------------------------------------------------
Balance at June 30, 1998        9,259  $30,274   $   20   $ (22,224)   $ 8,070
                               =================================================





CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                           Six Months Ended
                                                                June 30,
(in thousands)                                              1998       1997
                                                         -----------------------
Cash flows from operating activities:
   Net income                                             $   523    $   448
   Adjustments to reconcile net income to net
     cash provided by operating activities:
   Depreciation and amortization                              175        195
   Provision for loan losses                                   --         --
   Net change in receivables, payables and other assets       (29)      (469)
   Gain on sale of real estate owned                          (10)        --
   Write-downs of real estate owned                            16         --
   Minority interest expense                                  490        454
   (Gain) loss on discontinued businesses                      (1)         4
                                                         -----------------------
   Net cash provided by operating activities                1,164        632





                                                                    (Continued)


          (See accompanying notes to consolidated financial statements)


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



                                                           Six Months Ended
(in thousands)                                                  June 30,
                                                            1998       1997
                                                       -------------------------
Cash flows from investing activities:           
   Proceeds from maturity of interest bearing cash
     with an original maturity greater than 90 days       $    99    $ 1,882
   Purchases of interest bearing deposits with
     financial institutions                                     -        (99)
   Purchase of investment securities available-for-sale    (5,931)    (8,497)
   Proceeds from maturity of investment securities
     available-for-sale                                     3,500        579
   Net increase in loans                                   (6,903)    (3,687)
   Proceeds on sale of real estate owned                      617          -
   Purchase of premises and equipment                        (111)       (29)
   Proceeds from sales of premises and equipment               20          -
                                                       -------------------------
   Net cash used in investing activities                   (8,709)    (9,851)

Cash flows from financing activities:
   Net increase in deposits                                24,207     11,610
   Payments for notes payable to affiliates and
     other borrowed funds                                     (59)       (23)
                                                       -------------------------
   Net cash provided by financing activities               24,148     11,587
                                                       -------------------------
 Increase in cash and cash equivalents                     16,603      2,368

Beginning cash and cash equivalents                         8,541     17,346
                                                       -------------------------
Ending cash and cash equivalents                          $25,144    $19,714
                                                       =========================
Supplemental  disclosures of cash flow information:
  Cash paid during the period for:
     Interest                                             $ 1,638    $ 1,195
     Income taxes                                             105          2

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
                                  JUNE 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
         presentation  of the results of  operations  for the  interim  periods.
         Results  for the six and three  month  periods  ended June 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 periods.


(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
                                  JUNE 30, 1998
                                   (Unaudited)

(3)      EARNINGS PER SHARE

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

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

                            Six Months Ended              Six Months Ended
                              June 30, 1998                 June 30, 1997
                        --------------------------------------------------------
                                             Per                          Per
                           Net              Share      Net               Share
                         Income    Shares   Amount    Income    Shares   Amount
                        --------------------------------------------------------
Basic EPS:
Income available to
 common shareholders     $  523    9,184    $  .06    $  448    9,169    $  .05
Effect of Dilutive
 Securities:
 Stock options                        85                           --
                        --------------------------------------------------------
Diluted EPS:
Income available to
 common shareholders
 plus assumed
 conversions             $  523    9,269    $  .06    $  448    9,169    $  .05
                        ========================================================



                            Three Months Ended           Three Months Ended
                              June 30, 1998                 June 30, 1997
                        --------------------------------------------------------
                                             Per                          Per
                          Net               Share      Net               Share
                         Income    Shares   Amount    Income    Shares   Amount
                        --------------------------------------------------------
Basic EPS:
Income available to
 common shareholders     $  249    9,199    $  .03    $  411    9,169    $  .03
Effect of Dilutive
 Securities:
 Stock options                        85                           --
                        --------------------------------------------------------
Diluted EPS:
Income available to
 common shareholders
 plus assumed
 conversions             $  249    9,284    $  .03    $  411    9,169    $  .03
                        ========================================================


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



(4)   LOANS

      A summary of loans follows:
                                                      June 30,    December 31,
      (in thousands)                                    1998         1997
                                                   -----------------------------
      Real estate mortgage loans                    $  71,244    $  67,970
      Commercial loans not secured by real estate      34,194       29,425
      Personal loans not secured by real estate         4,594        5,755
      Less unearned income, discounts and fees           (223)        (273)
                                                   -----------------------------
                                                    $ 109,809    $ 102,877
                                                   =============================

(5)   OTHER OPERATING INCOME

      A summary of other operating income follows:

                                      Six Months Ended   Three Months Ended
                                           June 30,            June 30,
      (in thousands)                    1998      1997      1998      1997
                                     -------------------------------------------
      Depositor charges               $  276    $  279    $  137    $  137
      Service charges, commissions
       & fees                             34        24        22        13
      Other income                        43        35        13        17
                                     -------------------------------------------
                                      $  353    $  338    $  172    $  167
                                     ===========================================


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



(6)      OTHER OPERATING EXPENSES

         A summary of other operating expenses is as follows:

                                     Six Months Ended    Three Months Ended
                                         June 30,            June 30,
(in thousands)                       1998      1997       1998      1997
                                   ---------------------------------------------
Salaries and Employee Benefits      $1,929    $1,715    $  957    $  826
Occupancy                              381       512       208       212
Data Processing                        262       242       133       125
Customer Service                       235       236       132       117
Depreciation and Amortization          175       196        90        92
Professional Services                  158       101        92        53
Advertising and Promotion              140       129        74        62
Printing and Postage                    54        54        31        31
Net Cost of Operation of REO            53         6        24         2
Stationery and Supplies                 48        38        28        19
Telephone and Telefax                   41        40        22        17
Insurance                               20        31        10        15
Regulatory Fees and Assessments         17        30         9        15
Collection                               8        29         3        10
Miscellaneous                          267       214       115        58
                                   ---------------------------------------------
                                    $3,788    $3,573    $1,928    $1,672
                                   =============================================



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

The following presents management's  discussion and analysis of the consolidated
financial  condition and operating  results of West Coast Bancorp (as a separate
entity "West Coast" and together with its  subsidiaries  the  "Company") for the
six and three month periods ended June 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 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, 1997.

GENERAL

The Company recorded net income of $523,000, or $.06 per share, and $249,000, or
$.03 per share, during the six and three months ended June 30, 1998, as compared
with net income of $448,000, or $.05 per share, and $411,000, 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.  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:

                   June 30,     December 31,   June 30,     December 31,
                     1998          1997          1997          1996
                 --------------------------------------------------------
(in thousands)
Total assets       $155,826      $130,621      $120,961      $108,987
Loans               109,809       102,877        86,236        82,657
Deposits            139,177       114,970       107,167        95,557


The $35  million  increase  in total  assets from June 30, 1997 to June 30, 1998
occurred  primarily  due to a $32 million  increase in deposits at Sunwest  from
increased  marketing  efforts and due to the expanding economy in Orange County,
California.



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


RESULTS OF OPERATIONS

NET INTEREST INCOME
Net  interest  income  increased  $607,000 or 16% during the first six months of
1998 as compared  to the same  period in 1997.  Sunwest's  net  interest  income
increased  $629,000 due to a $1,036,000  increase in interest income,  partially
offset by a $407,000  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 5.81% in
1997 to 5.22% in 1998  primarily due to a decline in the  percentage of loans to
earning  assets from 79% in 1997 to 76% 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.  Increased
competition in the Company's  market area for loans and deposits may 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
                                  JUNE 30, 1998
                                   (Unaudited)

The following table sets forth the Company's  average balance sheets,  yields on
earning assets, rates paid on interest-bearing liabilities, net interest margins
and net yields on  interest-earning  assets for the six and three month  periods
ended June 30, 1998 and 1997 (dollars in millions):


                                               Six Months Ended June 30,
                                              1998                   1997
                                     Average        Yields/   Average    Yields/
                                     Balance        Rates     Balance    Rates
                                 -----------------------------------------------
ASSETS
Loans, net of unearned income,
     discounts and fees            $   101.1        10.21% $   84.6      10.38%
Investment securities                   18.0         5.83       9.4       6.47
Federal funds sold                      14.2         5.47      11.6       5.46
Interest-bearing deposits
     with financial institutions         0.0         7.14       1.0       5.18
                                 -----------------------------------------------
Total interest-earning assets          133.3         9.11     106.6       9.46

Allowance for credit losses             (2.4)                  (2.8)
Cash and due from banks                  8.0                    6.3
Other assets                             3.8                    4.0
                                 -----------------------------------------------
                                   $   142.7               $  114.1
                                 ===============================================

LIABILITIES AND
SHAREHOLDERS' EQUITY

Time deposits                      $    42.4        5.43%  $   28.8       5.32%
Savings deposits                         5.0         1.99       4.7       1.96
Interest-bearing demand deposits        35.4         1.86      31.4       1.88
Other                                    1.0        21.62       1.0      22.04
                                 -----------------------------------------------
Total interest-bearing liabilities      83.8         3.89      65.9       3.64

Minority interest                        6.2                    4.9
Demand deposits                         43.9                   35.6
Other liabilities                        1.1                    1.4
Shareholders' equity                     7.7                    6.3
                                 -----------------------------------------------
                                   $   142.7               $  114.1
                                 ===============================================
Net interest margin                                  5.22%                5.81%
Net yield on interest-earning assets                 6.67                 7.20






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


                                              Three Months Ended June 30,
                                              1998                   1997
                                     Average        Yields/   Average    Yields/
                                     Balance        Rates     Balance    Rates
                                 -----------------------------------------------
ASSETS
Loans, net of unearned income,
     discounts and fees            $   102.2        10.13% $   85.9      10.46%
Investment securities                   19.5         5.82      11.6       6.54
Federal funds sold                      15.8         5.56      12.4       5.60
Interest-bearing deposits
     with financial institutions         0.0         0.00        .3       4.64
                                 -----------------------------------------------
Total interest-earning assets          137.5         8.99     110.2       9.49

Allowance for credit losses             (2.4)                  (2.7)
Cash and due from banks                  8.2                    6.4
Other assets                             3.9                    3.8
                                 -----------------------------------------------
                                   $   147.2               $  117.7
                                 ===============================================

LIABILITIES AND
SHAREHOLDERS' EQUITY

Time deposits                      $    44.7         5.43% $   30.6       5.39%
Savings deposits                         5.1         1.95       4.8       2.00
Interest-bearing demand deposits        36.0         1.89      32.3       1.90
Other                                    1.1        18.96        .9      22.00
                                 -----------------------------------------------
Total interest-bearing liabilities      86.9         3.93      68.6       3.71

Minority interest                        6.3                    4.9
Demand deposits                         45.1                   36.7
Other liabilities                        1.0                    1.1
Shareholders' equity                     7.9                    6.4
                                 -----------------------------------------------
                                   $   147.2               $  117.7
                                 ===============================================
Net interest margin                                  5.07%                5.78%
Net yield on interest-earning assets                 6.51                 7.18






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


The increases (decreases) in interest income and expense and net interest income
resulting from changes in average assets, liabilities and interest rates for the
1998 versus 1997 periods are summarized as follows (in thousands):
                      Six Months Ended June 30,     Three Months Ended June 30,
                     -----------------------------------------------------------
                         Asset/  Interest            Asset/  Interest
                       Liability   Rate            Liability   Rate
                        Changes  Changes   Total    Changes  Changes   Total
                     -----------------------------------------------------------
Changes in:
     Interest income    $1,138   $ (100)   $1,038   $  577   $  (99)   $  478
     Interest expense      401       28       429      210        7       217
                     -----------------------------------------------------------
Net interest income     $  737   $ (128)   $  609   $  367   $ (106)   $  261
                     ===========================================================

Loans on which the accrual of interest  had been  discontinued  at June 30, 1998
and 1997 amounted to $1,253,000 and $834,000,  respectively.  If these loans had
been current  throughout  their terms,  it is estimated that net interest income
would have increased by approximately $17,000 and $22,000 in the second quarters
of 1998  and  1997,  respectively.  This  would  have  raised  the net  yield on
interest-earning  assets and the net interest  margin by  approximately  5 and 8
basis points during the second quarters of 1998 and 1997, respectively.

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

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):

                                       Six Months Ended     Three Months Ended
                                            June 30,              June 30,
                                        1998       1997       1998       1997
                                     -------------------------------------------
Allowance for loan losses
     balance at beginning of period   $ 2,364    $ 2,848    $ 2,367    $ 2,887

Charge-offs                               (23)      (194)        (9)      (189)
Recoveries                                 52         86         35         42
                                     -------------------------------------------
Net recoveries (charge-offs)               29       (108)        26       (147)

Provision for loan losses                  --         --         --         --
                                     -------------------------------------------
Allowance for loan losses
     balance at end of period         $ 2,393    $ 2,740    $ 2,393    $ 2,740
                                     ===========================================

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

All the above  charge-offs  and recoveries  were at Sunwest.  The net recoveries
during the six 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 June 30,  1998 of
$2,393,000 or 2.18% of loans was adequate to absorb known and inherent  risks in
the  Company's  loan  portfolio.  The ultimate  collectibility  of a substantial
portion of the Company's loans, as well as its financial condition,  is affected
by  general  economic  conditions  and the real  estate  market  in  California.
California has experienced,  and may continue to experience,  volatile  economic
conditions.  These conditions have adversely affected certain borrowers' ability
to repay loans.  While  Southern  California  and Orange County  economies  have
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  loan losses and would  adversely  affect the  financial  condition and
results of operations of the Company.

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

                           June 30,  December 31,  June 30,    December 31,
                             1998        1997        1997         1996
                          --------------------------------------------------
Nonaccrual loans            $1,253     $   --       $  834       $  931
Loans 90 days past due
     and still accruing          1         31           44           43
                          --------------------------------------------------
Nonperforming loans          1,254         31          878          974
Real estate owned              528      1,151        1,243        1,243
                          --------------------------------------------------
Nonperforming assets        $1,782     $1,182       $2,121       $2,217
                          ==================================================
Nonperforming loans/
    Total loans               1.14%       .03%        1.02%        1.18%
Nonperforming assets/
    Total assets              1.14        .90         1.75         2.03
                          ==================================================

Nonperforming  assets have  decreased  from $2.2 million at December 31, 1996 to
$1.8 million at June 30, 1998 due to a decline in nonperforming  loans. 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. One loan was placed on nonaccrual as of June 30, 1998.
The loan is expected to be repaid in the third quarter of 1998.

Restructured  loans that were performing  substantially in accordance with their
modified terms totaled  $3,038,000 at June 30, 1998. No restructured  loans were
on nonaccrual status at June 30, 1998.

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

OTHER OPERATING INCOME

Other  operating  income  increased by $15,000 for the six months ended June 30,
1998,  as compared  with the same  period in 1997.  See note (5) of the notes to
consolidated financial statements.

OTHER OPERATING EXPENSES

Other operating  expenses  increased $215,000 from the six months ended June 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):

                                     Six Months Ended      Three Months Ended
                                          June 30,              June 30,
                                      1998       1997       1998       1997
                                  ----------------------------------------------
Other operating expenses           $  3,788   $  3,573   $  1,928   $  1,672
Other operating expenses
     (annualized)/average assets       5.31%      6.26%      5.24%      5.68%
Other operating expenses/interest
     and other operating income        58.9%      66.4%      59.1%      60.1%
                                  ==============================================

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

The Company has determined that a number of its computer  software  applications
and hardware will need to be replaced in order to maintain  their  functionality
as the year 2000  approaches.  A  comprehensive  plan has been  developed,  with
system  conversions  and testing to be  substantially  completed by December 31,
1998.  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.  Cumulative
charges to noninterest  expense for incremental  costs  associated with the Year
2000 issue  were  approximately  $13,000  through  June 30,  1998.  The  Company
currently  estimates  that it will incur (and  expense)  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  years.  Other costs
associated  with the  redeployment  of  resources  to the Year  2000  issue  are
expected to be significantly less than the incremental costs.


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

INCOME TAXES

The  Company and  Sunwest  did not  recognize  any income tax expense or benefit
during the six and three  months  ended June 30, 1998 or 1997.  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.

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

For all the periods presented a valuation  allowance has been recorded to offset
most or all of the deferred tax assets of Sunwest and the Company. The valuation
allowance was  established due to uncertainty of future earnings at both Sunwest
and the Company.  As of 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 24% at June 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 six 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.


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

At June 30,  1998,  West  Coast had cash and  short  term  investments  totaling
$535,000. 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 $108,000. West Coast anticipates that
other operating  expenses will be approximately  $63,000 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.

CAPITAL RESOURCES AND DIVIDENDS

Sunwest  had a 12.07%,  13.32%  and  10.16%  Tier 1  risk-based  capital,  total
risk-based capital and leverage ratio at June 30, 1998, respectively. West Coast
Bancorp  had a  11.75%,  13.00%  and  9.89%  Tier 1  risk-based  capital,  total
risk-based capital and leverage ratio at June 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 June 30,
1998.



                                       19
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                                  JUNE 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
-----------------------------------------------------------------
NONE

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

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

         Exhibit 27 - Financial Data Schedule for June 30, 1998

(b)      Reports on Form 8-K

         None



                                       20
<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                                August 14, 1998
  -----------------------------------             ------------------------------
  Eric D. Hovde                                   Date
  Chief Executive Officer





  /s/Frank E. Smith                               August 14, 1998
  -----------------------------------             ------------------------------
  Frank E. Smith                                  Date
  Chief Financial Officer



                                       21
<PAGE>