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, 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 July 31, 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)
                                                         June 30,   December 31,
(in thousands, except share data)                          1997         1996
                                                        ------------------------
ASSETS
Cash and due from bank                                  $   6,414    $   7,246
Interest-bearing deposits with
     financial institutions                                   199        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                                         13,205        2,680
Federal funds sold                                         13,300       10,100

Loans                                                      86,236       82,657
Less allowance for credit losses                           (2,740)       2,848)
                                                        ------------------------
     Net loans                                             83,496       79,809
                                                        ------------------------
Real estate owned, net                                      1,243        1,243
Premises and equipment, net                                   739          932
Refundable and deferred taxes                               1,177          870
Other assets                                                1,188        1,518
                                                        ------------------------
                                                        $ 120,961    $ 108,987
                                                        ========================
LIABILITIES
Deposits:
     Demand, non-interest bearing                       $  39,503    $  33,983
     Savings, money market & interest bearing demand       35,364       34,342
     Time certificates under $100,000                      21,523       18,260
     Time certificates of $100,000 or more                 10,777        8,972
                                                        ------------------------
     Total deposits                                        107,167      95,557

Other borrowed funds                                           811         834
Other liabilities                                            1,076       1,642
                                                        ------------------------
     Total liabilities                                     109,054      98,033

Commitments and contingencies
Minority interest in subsidiary                              5,284       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                                  15         (25)
Accumulated deficit                                        (23,568)    (24,016)
                                                        ------------------------
     Total shareholders' equity                              6,623       6,135
                                                        ------------------------
                                                        $  120,961   $ 108,987
                                                        ========================

          (See accompanying notes to consolidated financial statements)




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



                                         Six Months Ended    Three Months Ended
(in thousands,                               June 30,              June 30,
 except share data)                      1997        1996    1997          1996
                                       -----------------------------------------
INTEREST INCOME
Loans, including fees                  $ 4,393    $ 4,039    $ 2,246    $ 2,007
Investment securities                      305        213        191         95
Deposits with banks                         25        109          5         47
Federal funds sold                         318        376        174        199
                                       -----------------------------------------
     Total interest income               5,041      4,737      2,616      2,348

INTEREST EXPENSE
Interest on deposits                     1,110      1,079        591        508
Other                                       91        309         45        158
                                       -----------------------------------------
     Total interest expense              1,201      1,388        636        666
                                       -----------------------------------------
     Net interest income                 3,840      3,349      1,980      1,682

Provision for credit losses                 --        (56)        --        (42)
                                       -----------------------------------------
     Net interest income after
         provision for credit losses     3,840      3,405      1,980      1,724

Other operating income                     338        658        167        376
Other operating expenses                 3,573      3,935      1,672      2,016
(Loss) gain on liquidation of
   WCV, Inc.                                (4)       152         (3)        30
Minority interest expense                  454         --        362         --
Loss on sale of Sunwest shares              --        459         --         22
                                       -----------------------------------------
     Income (loss) before income taxes     147       (179)       110         92

Income taxes                              (301)         7       (301)         7
                                       -----------------------------------------

     Net income (loss)                 $   448    $  (186)   $   411    $    85
                                       =========================================

Net income (loss) per common share     $   .05    $  (.02)   $   .04    $   .01
                                       =========================================

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

          (See accompanying notes to consolidated financial statements)




                                       3
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CHANGES IN
                       SHAREHOLDERS' EQUITY AND CASH FLOWS
                                   (Unaudited)



CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY


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

Balance at December 31, 1996    9,169  $ 30,176  $  (25)  $ (24,016)  $ 6,135
Net income                          -         -       -         448       448
Change in securities
  valuation allowance               -         -      40           -        40
                               -------------------------------------------------
Balance at June 30, 1997        9,169  $ 30,176  $   15   $ (23,568)  $ 6,623
                               =================================================


CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                              Six Months Ended
                                                                  June 30,
(in thousands)                                                 1997      1996
                                                             -------------------
Cash flows from operating activities:
   Net income (loss)                                         $  448    $ (186)
   Adjustments to reconcile net income (loss) to net
     cash provided by operating activities:
   Depreciation and amortization                                195       281
   Provision (benefit) for credit losses                         --       (56)
   Net change in receivables, payables and other assets        (469)      173
   Write-downs of real estate owned                              --       172
   Loss from sales of real estate owned, net                     --         9
   Minority interest expense                                    454        --
   Loss (gain) on discontinued businesses                         4      (152)
   Gain on sale of B&PB shares                                   --      (287)
   Expected loss on sale of Sunwest shares                       --       459
                                                             -------------------
   Net cash provided by (used in) operating activities          632       413









                                                                   (Continued)


          (See accompanying notes to consolidated financial statements)




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

                                                              Six Months Ended
(in thousands)                                                     June 30,
                                                               1997       1996
                                                             -------------------
Cash flows from investing activities:                          
   Proceeds from maturity of interest bearing cash
     with an original maturity greater than 90 days          $ 1,882   $  2,075
   Purchases of interest bearing cash                            (99)    (1,484)
   Proceeds from maturity of investment securities
     held to maturity                                             --      2,693
   Purchase of investment securities available for sale       (8,497)    (1,988)
   Proceeds from maturity of investment securities
     available for sale                                          579         --
   Net increase in loans                                      (3,687)    (2,693)
   Proceeds from sales of real estate owned                       --        156
   Purchase of premises and equipment                            (29)       (54)
                                                             -------------------
   Net cash (used in) provided by investing activities        (9,851)    (1,295)

Cash flows from financing activities:
   Net increase (decrease) in deposits                        11,610     (7,640)
   Proceeds from sale of B&PB stock                               --      1,233
   Payments for notes payable to affiliates,
     subordinated debt and other borrowed funds                  (23)      (592)
Loan proceeds from affiliate                                      --         37
                                                             -------------------
   Net cash provided by (used in) financing activities        11,587     (6,962)
                                                             -------------------
 Increase (decrease) in cash and cash equivalents              2,368     (7,844)

Beginning cash and cash equivalents                           17,346     21,907
                                                             -------------------
Ending cash and cash equivalents                             $19,714   $ 14,063
                                                             ===================
Supplemental  disclosures of cash flow information:
  Cash paid during the period for:
     Interest                                                $ 1,195   $  1,419
     Income taxes                                                  -          7

Supplemental schedule of non-cash investing
  and financing activities:
     Transfer of investment security from held to maturity
       to available for sale                                 $ 2,553   $      -
     Transfer of loans to real estate owned                        -      2,010
     Assumption of real estate owned senior debt                            213
     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
                                  JUNE 30, 1997
                                   (Unaudited)



(1)      BASIS OF PRESENTATION

          The   unaudited   consolidated   financial   statements   reflect  all
          adjustments,  consisting  primarily of normal  recurring  adjustments,
          which  are,  in  the  opinion  of  management,  necessary  for a  fair
          presentation  of the results of  operations  for the interim  periods.
          Results  for the six and three month  periods  ended June 30, 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:

                                                         June 30,   December 31,
         (in thousands)                                    1997         1996
                                                       -------------------------
         Real estate mortgage loans                    $  56,629   $     54,938
         Commercial loans not secured by real estate      27,846         25,300
         Personal loans not secured by real estate         2,053          2,728
         Less unearned income, discounts and fees           (292)          (309)
                                                       -------------------------
                                                       $  86,236   $     82,657
                                                       =========================





                                       6
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  JUNE 30, 1997
                                   (Unaudited)



(5)      OTHER OPERATING INCOME

         A summary of other operating income follows:

                                         Six Months Ended   Three Months Ended
                                              June 30,           June 30,
         (in thousands)                    1997     1996      1997     1996
                                         ---------------------------------------
         Depositor charges               $  279   $  304     $  137   $  154
         Gain on sale of B&PB stock           -      287          -      194
         Service charges, commissions
           & fees                            24       28         13       16
         Other income                        35       39         17       12
                                         ---------------------------------------
                                         $  338   $  658     $  167   $  376
                                         =======================================


(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)                      1997       1996     1997      1996
                                          --------------------------------------
         Salaries and Employee Benefits   $  1,715  $  1,789   $   826  $   870
         Occupancy                             512       460       212      231
         Data Processing                       242       202       125      144
         Customer Service                      236       187       117       94
         Depreciation and Amortization         196       281        92      142
         Advertising and Promotion             129       100        62       63
         Professional Services                 101       241        53      154
         Director Fees                          57        37        18       20
         Printing and Postage                   54        63        31       33
         Telephone and Telefax                  40        37        17       16
         Stationery and Supplies                38        62        19       25
         Insurance                              31        50        15       25
         Regulatory Fees and Assessments        30        93        15       45 
         Collection                             29        32        10       17
         Net Cost of Operation of REO            6       153         2       85
         Miscellaneous                         157       148        58       52
                                          --------------------------------------
                                          $  3,573  $  3,935   $ 1,672  $ 2,016
                                          ======================================





                                       7
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                                  JUNE 30, 1997


The following presents management's  discussion and analysis of the consolidated
financial  condition and operating  results of West Coast Bancorp (as a separate
entity "West Coast" and together with its  subsidiaries  the  "Company") for the
six and three month periods ended June 30, 1997 and 1996. The discussion  should
be read in conjunction with the Company's  consolidated financial statements and
the accompanying notes appearing elsewhere in this report.

Certain  statements  in this Report on Form 10-QSB  constitute  "forward-looking
statements"  under the Private  Securities  Litigation Act of 1995 which involve
risk and  uncertainties.  The Company's actual results may differ  significantly
from the results  discussed  in such  forward-looking  statements.  Factors that
might  cause  such  a  difference  include  but  are  not  limited  to  economic
conditions, competition in the geographic and business area in which the Company
conducts its  operations,  fluctuations  in interest  rates,  credit quality and
government regulation.  For additional information 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 $448,000,  or $.05 per share and $411,000, or
$.04 per share during the six and three months ended June 30, 1997,  as compared
with a loss of  $186,000,  or $.02 per share and income of $85,000,  or $.01 per
share during the same respective  periods in 1996. The income in 1997 versus the
loss in 1996 occurred  primarily because Sunwest had higher earnings,  including
recognizing a $307,000 tax benefit,  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:

                    June 30,     December 31,    June 30,     December 31,
                      1997           1996          1996           1995
                   -------------------------------------------------------------
(in thousands)                                          
Total assets       $ 120,961     $ 108,987     $ 105,928     $ 113,654
Loans                 86,236        82,657        79,012        79,000
Deposits             107,167        95,557        95,022       102,662


The $15  million  increase  in total  assets from June 30, 1996 to June 30, 1997
occurred  primarily  due to a $12 million  increase in deposits at Sunwest  from
increased marketing efforts.


                                       8
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                                  JUNE 30, 1997


RESULTS OF OPERATIONS

NET INTEREST INCOME Net interest income increased $491,000 or 15% from the first
six  months  of 1996 to the same  period  in  1997.  This  resulted  from an 11%
increase in average loans, the highest yielding earning asset,  partially offset
by a 7% increase in time  deposits  (the  highest  cost  deposits)  as a funding
source.  The  increase  in net  interest  income  was  also  due to  West  Coast
increasing  its  net  interest  income  by  $217,000  from  paying  off  its 10%
subordinated  debentures  and other notes payable in October 1996.  Net interest
income is expected to  increase in the future as Sunwest  increases  its earning
assets  through  its  marketing  efforts  and the  recovering  economy in Orange
County, California.





                                       9
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                                  JUNE 30, 1997



The following table sets forth the Company's  average balance sheets,  yields on
earning assets, rates paid on interest-bearing liabilities, net interest margins
and net yields on  interest-earning  assets for the six and three month  periods
ended June 30, 1997 and 1996 (dollars in millions):


                                                Six Months Ended June 30,
                                                1997                 1996
                                        Average    Yields/    Average    Yields/
                                        Balance    Rates      Balance    Rates
                                       -----------------------------------------
ASSETS
Loans, net of unearned income,
     discounts and fees                $    84.6    10.38%   $   76.3   10.59%
Investment securities                        9.4     6.47         7.0    6.07
Federal funds sold                          11.6     5.46        13.9    5.43
Interest-bearing deposits
     with financial institutions             1.0     5.18         3.6    6.00
                                       -----------------------------------------
Total interest-earning assets              106.6     9.46       100.8    9.40

Allowance for credit losses                 (2.8)                (3.8)
Cash and due from banks                      6.3                  5.8
Other assets                                 4.0                  7.4
                                       -----------------------------------------
                                       $   114.1             $  110.2
                                       =========================================

LIABILITIES AND
SHAREHOLDERS' EQUITY

Time deposits                          $    28.8     5.32%   $   26.9    5.30%
Savings deposits                             4.7     1.96         5.1    2.02
Interest-bearing demand deposits            31.4     1.88        32.6    1.93
Other                                        1.0    22.04         4.8   12.96
                                       -----------------------------------------
Total interest-bearing liabilities          65.9     3.64        69.4    4.00

Minority interest                            4.9                   .-
Demand deposits                             35.6                 34.2
Other liabilities                            1.4                  1.2
Shareholders' equity                         6.3                  5.4
                                       -----------------------------------------
                                       $   114.1               $110.2
                                       =========================================
Net interest margin                                  5.81%               5.40%
Net yield on interest-earning assets                 7.20                6.64









                                       10
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                                  JUNE 30, 1997



                                              Three Months Ended June 30,
                                              1997                  1996
                                       Average   Yields/     Average     Yields/
                                       Balance   Rates       Balance      Rates
                                       -----------------------------------------
ASSETS
Loans, net of unearned income,
     discounts and fees                $    85.9    10.46%     $  75.5   10.63%
Investment securities                       11.6     6.54          6.2    6.17
Federal funds sold                          12.4     5.60         14.8    5.38
Interest-bearing deposits
     with financial institutions              .3     4.64          3.4    5.51
                                       -----------------------------------------
Total interest-earning assets              110.2     9.49         99.9    9.40

Allowance for credit losses                 (2.7)                 (3.8)
Cash and due from banks                      6.4                   5.9
Other assets                                 3.8                   7.9
                                       -----------------------------------------
                                       $   117.7               $ 109.9
                                       =========================================

LIABILITIES AND
SHAREHOLDERS' EQUITY

Time deposits                          $    30.6     5.39%     $  25.3    5.17%
Savings deposits                             4.8     2.00          5.3    2.05
Interest-bearing demand deposits            32.3     1.90         32.4    1.89
Other                                         .9    22.00          5.0   12.74
                                       -----------------------------------------
Total interest-bearing liabilities          68.6     3.71         68.0    3.92

Minority interest                            4.9                    .-
Demand deposits                             36.7                  35.0
Other liabilities                            1.1                   1.5
Shareholders' equity                         6.4                   5.4
                                       -----------------------------------------
                                       $   117.7               $ 109.9
                                       =========================================
Net interest margin                                  5.78%                5.48%
Net yield on interest-earning assets                 7.18                 6.73









                                       11
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                                  JUNE 30, 1997



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

                         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     $ 377    $ (75)    $ 302    $ 290     $ (24)    $ 266
     Interest expense      (76)    (111)     (187)       9       (39)      (30)
                         -------------------------------------------------------
Net interest income      $ 453    $  36     $ 489    $ 281     $  15     $ 296
                         =======================================================

Loans on which the accrual of interest  had been  discontinued  at June 30, 1997
and 1996 amounted to $834,000 and $2,536,000,  respectively.  If these loans had
been current  throughout  their terms,  it is estimated that net interest income
would have increased by approximately $22,000 and $66,000 in the second quarters
of 1997  and  1996,  respectively.  This  would  have  raised  the net  yield on
interest-earning  assets and the net interest  margin by  approximately 8 and 26
basis points during the second quarters of 1997 and 1996, respectively.

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

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):

                                         Six Months Ended    Three Months Ended
                                             June 30,              June 30,
                                         1997       1996       1997       1996
                                      ------------------------------------------
Allowance for credit losses
     balance at beginning of period    $ 2,848    $ 3,820    $ 2,887    $ 3,925

Charge-offs                               (194)      (991)      (189)      (943)
Recoveries                                  86        320         42        153
                                      ------------------------------------------
Net charge-offs                           (108)      (671)      (147)      (790)

Provision for credit losses                 --        (56)        --        (42)
                                      ------------------------------------------
Allowance for credit losses
     balance at end of period          $ 2,740    $ 3,093    $ 2,740    $ 3,093
                                      ==========================================



                                       12
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                                  JUNE 30, 1997

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

Management  believes  that the  allowance  for credit losses at June 30, 1997 of
$2,740,000 or 3.18% 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.

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

                              June 30,  December 31,   June 30,   December 31,
                                1997        1996         1996         1995
                             ---------------------------------------------------
Nonaccrual loans              $  834      $  931      $ 2,536      $ 4,153
Loans 90 days past due
     and still accruing           44          43            5           25
                             ---------------------------------------------------
Nonperforming loans              878         974        2,541        4,178
Real estate owned              1,243       1,243        4,523        2,637
                             ---------------------------------------------------
Nonperforming assets          $2,121      $2,217      $ 7,064      $ 6,815
                             ===================================================
Nonperforming loans/
    Total loans                 1.02%       1.18%        3.22%        5.29%
Nonperforming assets/
    Total assets                1.75        2.03         6.67         6.00
                             ===================================================


Nonperforming  assets have  decreased  from $6.8 million at December 31, 1995 to
$2.1 million at June 30, 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 $3,091,000 at June 30, 1997.  Restructured loans totaling
$539,000 were on nonaccrual status at June 30, 1997.

OTHER OPERATING INCOME

Other operating  income  decreased by $320,000 for the six months ended June 30,
1997,  as compared  with the same  period in 1996.  See notes (1) and (5) of the
notes to consolidated financial statements. The decrease was a





                                       13
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                                  JUNE 30, 1997


result of West Coast recording a $287,000 gain on sale of B&PB stock in 1996.

OTHER OPERATING EXPENSES

Other operating  expenses  decreased $362,000 from the six months ended June 30,
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):

                                       Six Months Ended     Three Months Ended
                                           June 30,               June 30,
                                       1997        1996       1997      1996
                                    --------------------------------------------
Other operating expenses            $  3,573   $   3,935   $  1,672   $  2,016
Other operating expenses
     (annualized)/average assets        6.26%       7.14%      5.68%      7.33%
Other operating expenses/interest
     and other operating income         66.4%       72.9%      60.1%      74.0%
                                    ============================================

Significant  decreases in expenses in 1997 are as follows: Net Cost of Operation
of REO decreased $147,000 from lower levels of foreclosed  assets.  Professional
Services  decreased  $140,000 due  primarily to lower fees and reduced  services
from outside vendors.
 Depreciation  and  Amortization  decreased  $85,000 from assets  becoming fully
depreciated  and from  closure  of the  Santa  Ana  facility  on April 1,  1997.
Salaries and Employee  Benefits  decreased  $74,000 as a result of reductions in
staff.  Regulatory fees and Assessments  declined  $63,000 due to improvement in
the condition of Sunwest.

Significant  increases  included  Occupancy  expenses  increasing  $52,000  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  periods  exceeded  expected  rental  income on the  subleases.
Customer  Service  increased  $49,000 due to  increased  business  levels.  Data
Processing  expenses  increased $40,000 primarily due to an adjustment  received
from a vendor in 1996 and  increased  business  levels in 1997.  Due to actively
marketing  Sunwest in the local  market,  Advertising  and  Promotion  increased
$29,000.

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

INCOME TAXES

Sunwest  recognized a tax benefit of $307,000 during the second quarter of 1997.
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



                                       14
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                                  JUNE 30, 1997

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

For all the periods presented a valuation  allowance has been recorded to offset
most or all of the deferred tax assets of Sunwest and the Company. The valuation
allowance was  established due to uncertainty of future earnings at both Sunwest
and the  Company.  As of June 30,  1997,  Sunwest has  recognized  a  $1,177,000
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 26% at June 30, 1997 and 18% at December 31,
1996.  The  Company  believes it has  sufficient  liquid  resources,  as well as
available credit facilities, to enable it to meet its operating needs.

THE PARENT COMPANY

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

During  the first six months of 1997 West Coast did not  receive  any  dividends
from its subsidiaries.  West Coast does not expect to receive dividends from its
subsidiaries during 1997.

West Coast received $493,000 in February 1997 from the purchase price adjustment
that originated from the sale of 15 shares of Sunwest stock. No significant cash
receipts are expected for the  remainder of 1997.  At June 30, 1997,  West Coast
had cash totaling $734,000.


                                       15
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
                                  JUNE 30, 1997


West Coast paid $120,000 of accrued directors' fees in February 1997. These fees
were accrued for the period October 1994 through  January 1997.  Directors' fees
are now paid at the rate of $250 per director per meeting  attended.  West Coast
anticipates  other cash  expenditures  during  1997 to  consist of debt  service
payments and other operating  expenses.  West Coast's projected debt service for
the  remainder  of 1997  includes  quarterly  payments  on the notes  payable of
$12,000  each.  Principal  and interest  outstanding  under these notes  totaled
$463,000 at June 30, 1997.  Unpaid  principal and interest is due June 30, 1999.
West Coast  anticipates  that other  operating  expenses  will be  approximately
$80,000  during the remainder of 1997 plus $30,000 of salary to the President of
West Coast.  The President's  compensation  was reduced from $158,000 to $60,000
effective   May  1,  1997,  at  which  time  the  deferral  of  his  salary  was
discontinued.  Prior deferred  salaries and incentives  payable to the President
totaled  $514,000 at June 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 13.36%,  14.63%  and  10.31%  Tier 1  risk-based  capital,  total
risk-based capital and leverage ratio at June 30, 1997, respectively.  These are
above the regulatory minimums of 4.00%, 8.00% and 4.00%,  respectively.  Sunwest
is considered "well capitalized" under the regulatory capital guidelines.

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



                                       16
<PAGE>
                       WEST COAST BANCORP AND SUBSIDIARIES
                                  JUNE 30, 1997

                                     PART II

                                OTHER INFORMATION





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

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

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

Item 4.  Submission of Matters to a Vote of Security Holders
-----------------------------------------------------------------
West Coast Bancorp held its Annual Meeting of  Shareholders  (the  "Meeting") on
May 27, 1997.

At the Meeting,  the  following  individuals  were elected to serve as directors
until the 1998 Annual  Meeting of  Shareholders  and until their  successors are
elected and have qualified:

                                                          Authority
Name of Director                  Votes For               Withheld

J. David Cheshier                 6,083,576                178,018
L. Wayne Gertmenian               6,077,260                184,334
Thomas A. Jones                   6,084,644                176,950
John B. Joseph                    6,020,232                241,362
Lacy G. Marlette, Jr.             6,083,760                177,834
Ronald R. White                   6,016,170                245,424

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

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

         Exhibit 27 - Financial Data Schedule for June 30, 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                                   August 14, 1997
  -----------------------------------------           ----------------------
  John B. Joseph                                      Date
  Chief Executive Officer





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






                                       18
<PAGE>