<PAGE>

             SECURITIES AND EXCHANGE COMMISSION
                    WASHINGTON, DC 20549


                          FORM 10-Q
          Quarterly Report Under Section 13 or 15(d)
            of The Securities Exchange Act of 1934


For Quarter Ended June 30, 1999  Commission file number 0-16213

                        GBC BANCORP
----------------------------------------------------------------
(Exact name of registrant as specified in its charter)

         California                            95-3586596
----------------------------------------------------------------
(State  or  other jurisdiction of         (I.R.S. Employer
 incorporation or organization)            Identification No.)

  800 West 6th Street, Los Angeles,        California   90017
----------------------------------------------------------------
(Address of principal executive offices)         (Zip code)

Registrant's telephone number, including area code 213/972-4172
----------------------------------------------------------------
Former  name  address and former fiscal year, if changed since
last report.

      Indicate by check mark whether the registrant (1)  has
filed  all  reports required to be filed by  Section  13  or
15(d)  of  the  Securities Exchange Act of 1934  during  the
preceding  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
      -------      -------

      Indicate the number of shares outstanding of  each  of
the issuer's classes of common stock, as of the close of the
period covered by this report.

      Common  stock, no par value, 12,822,798 shares  issued
and outstanding as of June 30, 1999.



<PAGE>


                              TABLE OF CONTENTS
                              -----------------



PART I -   FINANCIAL INFORMATION  ......................................


Item 1.    Financial Statements   ......................................


Item 2.    Management's Discussion and Analysis of Financial Condition
           and Results of Operations  ..................................



PART II -  OTHER INFORMATION ...........................................


Item 1.    Legal Proceedings ...........................................


Item 2.    Changes In Securities .......................................


Item 3.    Default Upon Senior Securities ..............................


Item 4.    Submission Of Matters To A Vote Of Securities Holders .......


Item 5.    Other Information  ..........................................


Item 6.    Exhibits And Reports On Form 8-K ............................




PART III - SIGNATURES ..................................................



<PAGE>



                         PART I - FINANCIAL INFORMATION


<PAGE>




                           GBC BANCORP AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                   June 30,     December 31,
(In Thousands)                                       1999           1998
-------------------------------------------------------------------------------
<S>                                           <C>             <C>
ASSETS

Cash and Due From Banks                        $     39,338    $     27,514
Federal Funds Sold and Securities
 Purchased Under Agreements to Resell                35,000         101,000
Securities Available for Sale at
 Fair Value (Amortized Cost of $769,408
 And $721,000 at June 30, 1999 and
 December 31, 1998, Respectively)                   762,952         724,172
Securities Held to Maturity (Fair Value
 of $1,925 and $24



 ,677 at June 30, 1999
 and December 31, 1998, Respectively)                 1,934          24,616
Loans and Leases                                    848,939         788,945
Less: Allowance for Credit Losses                   (19,061)        (19,381)
      Deferred Loan Fees                             (4,865)         (5,914)
                                               -------------   -------------
Loans and Leases, Net                               825,013         763,650
Bank Premises and Equipment, Net                      5,495           5,656
Other Real Estate Owned, Net                         12,242           6,885
Due From Customers on Acceptances                     6,798           7,249
Real Estate Held for Investment                       6,371           7,034
Accrued Interest Receivable and Other Assets         11,795          13,048
                                               -------------   -------------
  Total Assets                                 $  1,706,938    $  1,680,824
                                               =============   =============

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits:
 Demand                                        $    168,992    $    149,397
 Interest Bearing Demand                            285,022         280,294
 Savings                                             84,195          81,051
 Time Certificates of Deposit of
  $100,000 or More                                  670,740         599,669
 Other Time Deposits                                228,370         270,492
                                               -------------   -------------
  Total Deposits                                  1,437,319       1,380,903

Federal Funds Purchased and Securities
 Sold Under Repurchase Agreements                     1,000               -
Borrowings from the Federal Home Loan Bank           50,000          35,000
Subordinated Debt                                    38,941          38,876
Acceptances Outstanding                               6,798           7,249
Accrued Expenses and Other Liabilities               20,407          55,766
                                               -------------   -------------
  Total Liabilities                               1,554,465       1,517,794

Stockholders' Equity:
 Common Stock, No Par or Stated Value;
  40,000,000 Shares Authorized ;
  12,822,798 and 13,711,998 shares
  Outstanding at June 30, 1999 and
  December 31,1998, Respectively               $     56,896    $     56,303
 Accumulated Other Comprehensive
  (Loss) Income                                      (3,750)          1,829
 Retained Earnings                                   99,327         104,898
                                               -------------   -------------
  Total Stockholders' Equity                        152,473         163,030
                                               -------------   -------------
  Total Liabilities and Stockholders'
   Equity                                      $  1,706,938    $  1,680,824
                                               ============    ============

See Accompanying Notes to Consolidated Financial Statements

</TABLE>

<PAGE>

                           GBC BANCORP AND SUBSIDIARIES
                         CONSOLIDATED STATEMENTS OF INCOME

<TABLE>
<CAPTION>

                                          For The Three              For The Six
                                           Months Ended             Months Ended
                                            June 30,                  June 30,
(In Thousands, Except Per Share Data)  1999        1998         1999        1998
--------------------------------------------------------------------------------
<S>                               <C>         <C>          <C>         <C>
INTEREST INCOME
 Loans and Leases,Including Fees   $ 18,939    $ 17,882     $ 37,765    $ 34,452
 Securities Available for Sale       11,392      10,398       22,282      20,286
 Securities Held to Maturity             92       1,430          397       2,667
 Federal Funds Sold and
  Securities Purchased under
  Agreements to Resell                  879       1,483        2,011       3,468
 Other                                    1           -            2           6
                                   --------    --------     --------    --------
Total Interest Income                31,303      31,193       62,457      60,879

INTEREST EXPENSE
 Interest Bearing Demand              1,752       1,795        3,387       3,168
 Savings                                433         595          851       1,243
 Time Certificates of Deposits
  of $100,000 or More                 7,470       7,859       14,570      15,622
 Other Time Deposits                  2,587       3,377        5,470       6,436
 Federal Funds Purchased and
  Securities Sold under Repurchase
  Agreements                              8          12           25          16
 Borrowings from the Federal Home
  Loan Bank                             612           -        1,116           -
 Subordinated Debt                      871         871        1,741       1,741
                                     ------      ------       ------      ------
Total Interest Expense               13,733      14,509       27,160      28,226

Net Interest Income                  17,570      16,684       35,297      32,653
Provision for Credit Losses             500           -        2,000           -
                                     ------      ------       ------      ------

Net Interest Income after
 Provision for Credit Losses         17,070      16,684       33,297      32,653

NON-INTEREST INCOME
 Service Charges and Commissions      1,807       1,661        3,447       3,098
 Gain on Sale of Loans, Net              12           5          111          24
 Gain on Sale of Fixed Assets            22           -           22           -
 Other                                  102         146          215         463
                                     ------      ------       ------      ------
Total Non-Interest Income             1,943       1,812        3,795       3,585

NON-INTEREST EXPENSE
 Salaries and Employee Benefits       4,963       4,364        9,435       8,659
 Occupancy Expense                      810         758        1,573       1,486
 Furniture and Equipment Expense        460         516        1,070       1,001
 Net Other Real Estate Owned
  (Income) Expense                     (272)        127         (226)        439
 Other                                1,820       1,741        3,524       3,225
                                     ------      ------       ------      ------
Total Non-Interest Expense            7,781       7,506       15,376      14,810

 Income before Income Taxes          11,232      10,990       21,716      21,428
 Provision for Income Taxes           4,216       4,147        8,135       7,954
                                     ------      ------       ------      ------
 Net Income                        $  7,016    $  6,843     $ 13,581    $ 13,474
                                   ========    ========     ========    ========
Earnings Per Share:
 Basic                             $   0.54    $   0.48     $   1.03    $   0.95
 Diluted                               0.53        0.48         1.01        0.94
                                   ========    ========     ========    ========

See Accompanying Notes to Consolidated Financial Statements


</TABLE>
<PAGE>

                                     GBC BANCORP & SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

<TABLE>
<CAPTION)
                                                                Accumulated
                                                                   Other                          Total
(In Thousands, Except           Common Stock       Retained    Comprehensive   Comprehensive   Stockholders'
 per Share Amounts)           Shares    Amount     Earnings    Income (Loss)      Income          Equity
                             ---------------------------------------------------------------------------------
<S>                          <C>       <C>         <C>            <C>            <C>             <C>

Balance at December 31,1997  $13,990   $53,314     $91,355        $ 1,654                        $146,323
---------------------------
Comprehensive Income
 Net Income for the year           -         -      28,142              -         $28,142          28,142
 Other Comprehensive Income,
  Net of Tax
  Net Changes in Securities
   Valuation Allowance             -         -           -            175             175             175
                                                                                ------------
Comprehensive Income                                                              $28,317
                                                                                 ==========
Stock Options Exercised          187     1,375           -              -                           1,375
Tax Benefit-Stock
 Options Exercised                 -     1,614           -              -                           1,614
Stock Repurchase                (465)              (10,386)                                       (10,386)
Cash Dividend- $.30 per Share      -         -     ( 4,213)             -                         ( 4,213)
                             ----------------------------------------------                      ---------
Balance at December 31, 1998 $13,712   $56,303    $104,898        $ 1,829                        $163,030
---------------------------- =======   =======    ========        =======                        =========

Comprehensive Income
 Net Income for the
  Six Months                       -         -      13,581              -         $13,581          13,581
                                                                                ------------
 Other Comprehensive Income
  (Loss), Net of Tax
 Net Changes in Securities
  Valuation Allowance              -         -           -         (5,579)         (5,579)         (5,579)
                                                                                ------------
Comprehensive Income                                                              $ 8,002
                                                                                 =========
Stock Options Exercised           46       389           -              -                             389
Tax Benefit-Stock
 Options Exercised                 -       204           -              -                             204
Stock Repurchase                (935)              (17,190)                                       (17,190)
Cash Dividend-$.15 per Share       -         -     ( 1,962)             -                         ( 1,962)
                             ----------------------------------------------                      ---------
Balance at June 30, 1999     $12,823   $56,896     $99,327        $(3,750)                       $152,473
------------------------     =======   =======     =======        ========                       =========

</TABLE>
<TABLE>
<CAPTION>


Disclosure of Reclassification Amount:

                                                                For the Six            For the
                                                                Months Ended           Year Ended
                                                                June 30,1999          Dec. 31,1998
                                                                ------------           -----------
<S>                                                              <C>                    <C>

Net Change of Unrealized Holding (Losses) Gains Arising
 During Period, Net of Tax (Benefit) Expense of $(4,048)
 and $172 in 1999 and 1998, Respectively                          $ (5,579)              $   237
Less: Reclassification Adjustment for Gains Included in Net
 Income, Net of Tax Expense of: $0 and $45 in 1999 and 1998,
 Respectively                                                            -                   (62)
                                                                 -----------           -----------
Net Change of Unrealized (Losses) Gains on Securities
 Net of Tax (Benefit) Expense of $(4,048) and  $127 in 1999
 and 1998, Respectively                                           $ (5,579)              $   175
                                                                 ===========           ===========

See Accompanying Notes to Consolidated Financial Statements


</TABLE>


                           GBC BANCORP AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                               For the Six Months Ended June 30,
----------------------------------------------------------------------------------
(In Thousands)                                                1999        1998
----------------------------------------------------------------------------------
OPERATING ACTIVITIES:
<S>                                                      <C>            <C>
Net Income                                                $  13,581      $  13,474
Adjustments to Reconcile Net Income to Net Cash
 Provided by Operating Activities:
Depreciation                                                    658            629
Net Amortization/(Accretion) of Premiums/Discounts
 on Securities                                                  618             76
Accretion of Discount on Subordinated Notes                      65             65
Writedown on Real Estate Held for Investment                    663            663
Provision for Credit Losses                                   2,000              -
Amortization of Deferred Loan Fees                           (2,184)        (1,474)
Gain on Sale of Loans                                             -            (24)
Gain on Sale of Other Real Estate Owned                        (720)           (23)
Gain on Sale of Fixed Assets                                    (22)             -
Proceeds from Sales of Loans Originated for Sale                  -             24
Net Increase in Accrued Interest Receivable and
 Other Assets                                                 1,253          5,693
Net Decrease in Accrued Expenses and Other
 Liabilities                                                (31,311)        (3,550)
Other, Net                                                      388              1
                                                          ----------     ----------
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES          $ (15,011)     $  15,554
                                                          ----------     ----------

INVESTING ACTIVITIES:
Purchases of Securities Available for Sale                 (236,485)      (189,306)
Proceeds from Maturities of Securities
 Available for Sale                                         187,412        183,186
Purchases of Securities Held to Maturity                          -        (50,090)
Proceeds from Maturities of Securities
 Held to Maturity                                            22,730         30,866
Net Increase in Loans and Leases                            (69,951)       (79,560)
Proceeds from Sales of Other Real Estate Owned                4,442          1,662
Capitalized Costs of Other Real Estate Owned                   (308)             -
Purchases of Premises and Equipment                            (619)          (456)
Proceeds from Sales of Bank Premises
 and Equipment                                                   27              -
                                                          ----------     ----------
NET CASH USED BY INVESTING ACTIVITIES                     $ (92,752)     $(103,698)
                                                          ----------     ----------

FINANCING ACTIVITIES:
Net Increase/(Decrease) in Demand, Interest
 Bearing Demand and Savings Deposits                         27,467         53,642
Net Increase in Time Certificates of Deposits                28,949         38,636
Net Increase in Federal Funds Purchased and
 Securities Sold Under Agreements to Repurchase               1,000              -
Borrowings from the Federal Home Loan Bank                   15,000              -
Stock Repurchase Program                                    (17,190)             -
Cash Dividends Paid                                          (2,028)        (1,900)
Proceeds from Exercise of Stock Options                         389          1,187
                                                          ----------     ----------
NET CASH PROVIDED  BY FINANCING ACTIVITIES                $  53,587      $  91,565
                                                          ----------     ----------

NET CHANGE IN CASH AND CASH EQUIVALENTS                     (54,176)         3,421
Cash and Cash Equivalents at Beginning of Period            128,514        140,519
                                                          ----------     ----------
Cash and Cash Equivalents at End of Period                $  74,338      $ 143,940
                                                          ==========     ==========
Supplemental Disclosures of Cash Flow Information:
 Cash Paid During This Period for:
  Interest                                                $  27,083      $  27,811
  Income Taxes                                                7,359          1,102
                                                          =========      =========
Noncash Investing Activities:
 Loans Transferred to Other Real Estate Owned
  at Fair Value                                           $   8,772      $     588
                                                          =========      =========
See Accompanying Notes to Consolidated Financial Statements


</TABLE>

<PAGE>

                GBC Bancorp and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
------------------------------------------------------

       In   the  opinion  of  management,  the  consolidated
financial  statements  of GBC Bancorp and  its  subsidiaries
(the  "Company") as of June 30, 1999 and December 31,  1998,
and  the six and three months ended June 30, 1999 and  1998,
reflect  all  adjustments  (which  consist  only  of  normal
recurring  adjustments) necessary for a  fair  presentation.
In   the   opinion   of   management,   the   aforementioned
consolidated  financial statements are  in  conformity  with
generally accepted accounting principles.

Earnings Per Share
------------------

      Basic earnings per share is determined by dividing net
income  by  the  average number of shares  of  common  stock
outstanding, while diluted earnings per share is  determined
by  dividing net income by the average number of  shares  of
common stock outstanding adjusted for the dilutive effect of
common stock equivalents.

Consolidated Statements of Cash Flows
-------------------------------------

      Cash and cash equivalents consist of cash and due from
banks, and federal funds sold and securities purchased under
agreements to resell.


Item 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF
          ---------------------------------------
          FINANCIAL CONDITION AND RESULTS OF OPERATIONS
          ---------------------------------------------

OVERVIEW
--------

       Net  income  for  the  second  quarter  of  1999  was
$7,016,000, or $0.53 diluted earnings per share compared  to
$6,843,000,  or  $0.48 diluted earnings per  share  for  the
corresponding period of 1998. The $0.05, or 10.4%,  increase
was  primarily  the  result of the stock repurchase  program
begun  in  the  fourth quarter, 1998 and  completed  in  the
second  quarter, 1999.  The $173,000, or 2.5%,  increase  in
net  income for the second quarter of 1999 was primarily the
result  of  an  increase  of net interest  income  partially
offset by an increase of the provision for credit losses.

      For  the  six months ended June 30, 1999,  net  income
totaled $13,581,000, an increase of $107,000, or 0.8%,  from
the  $13,474,000 earned during the corresponding  period  of
1998.  The increase was due primarily to the growth  of  net
interest  income  partially offset by  an  increase  of  the
provision for credit losses. Diluted earnings per share  for
the  six months ended June 30, 1999 were $1.01, compared  to
the $0.94 for the same period of 1998.  As was the case with
the  quarterly comparison of the diluted earnings per share,
the  $0.07,  or  7.4%,  increase of the  six  month  diluted
earnings  per  share was primarily the result of  the  stock
repurchase program referenced above.

      As  of June 30, 1999, record high levels were achieved
for loans and leases, total assets and total deposits.

      For  the  quarter ended June 30, 1999  and  1998,  the
annualized  return on average assets ("ROA") was  1.66%  and
1.73%,  respectively, and the annualized return  on  average
stockholders'   equity   ("ROE")  was   18.0%   and   17.4%,
respectively.

      For  the six months ended June 30, 1999 and 1998,  the
ROA  was 1.63% and 1.74%, respectively.  For the six  months
ended  June 30, 1999 and 1998, the ROE was 17.2% and  17.6%,
respectively.

            On June 11, 1999, the Company announced that its
board  of  directors  had authorized a  Dutch  Auction  self
tender  offer  for up to 2 million shares of  the  Company's
common   stock,  representing  approximately  16%   of   its
outstanding shares. The tender price range was from  $18  to
$22  per  share.  On  July 20, 1999, the  Company  purchased
approximately  1,328,000 shares that were tendered  pursuant
to  the offer at a price of $22 per share in accordance with
the terms of the tender offer.


RESULTS OF OPERATIONS
---------------------

Net Interest Income-Quarterly Results
-------------------------------------

      For  the  quarter ended June 30, 1999  and  1998,  net
interest  income before the provision for credit losses  was
$17,570,000  and $16,684,000, respectively, representing  an
increase of $886,000, or 5.3%.

      Total  interest income for the quarter ended June  30,
1999,  was  $31,303,000, representing a $110,000,  or  0.4%,
increase over the corresponding quarter of a year ago.   The
increase was due to a growth of $118.2 million, or 7.7%,  of
average  interest  earning assets.  The impact  on  interest
income  from  the growth of average interest earning  assets
was  partially offset by a decline in the yield  on  earning
assets to 7.60% from 8.15% for the quarters ending June  30,
1999 and 1998, respectively.

      The  $118.2 million growth of average interest earning
assets was comprised of increases of $141.5 million and $8.9
million  for  loans and leases and securities, respectively,
partially offset by a $32.2 million decline of federal funds
sold and securities purchased under agreements to resell.


             The  yields on all categories of earning assets
declined with the most notable reduction being the yield  on
loans  and  leases,  which declined  124  basis  points.  In
addition  to  a  decline  in  the  national  prime  rate  of
interest,  (the  average  national prime  rate  of  interest
during the quarters ended June 30, 1999 and 1998, was  7.75%
and  8.5%,  respectively), loan yields were also  negatively
impacted by an increase in the average of non-accrual loans.
For  the quarter ended June 30, 1999 and 1998, average  non-
accrual   loans  were  $50.3  million  and  $13.2   million,
respectively. The non-accrual average for the quarter  ended
June 30, 1999, included two large credits, one of which  was
transferred to OREO at the end of the quarter. Please  refer
to  the  discussion "Non-Performing Assets", following.  The
effect  of the decline of the yield on loans and leases  and
securities  was  partially mitigated by an increase  in  the
percentage  of average accruing loans and leases,  to  total
average earning assets.  For the three months ended June 30,
1999  and  1998, average accruing loans and leases comprised
47.6%  and  44.5%,  respectively, of total  average  earning
assets.   Loans  and leases represent the  highest  yielding
interest earning asset.

      Total interest expense for the quarter ended June  30,
1999,  was  $13,733,000, representing a $776,000,  or  5.3%,
decrease over the corresponding quarter of a year ago.   The
decrease  was  due to the reduction of the  cost  of  funds,
partially  offset  by  a $90.1 million increase  of  average
interest  bearing liabilities.  For the quarter  ended  June
30,  1999  and 1998, the cost of funds was 4.08% and  4.62%,
respectively.

      The decrease in the cost of funds was the result of  a
decrease  in  the  rates paid on interest-bearing  deposits.
For  the  three months ended June 30, 1999 and  1998,  rates
paid  on  interest-bearing deposits were  3.90%  and  4.48%,
respectively. The rates paid on all categories of  interest-
bearing deposits decreased. The following table displays the
average  balance and rates paid for the deposit products  of
General  Bank  (the "Bank") for the quarter ended  June  30,
1999 and 1998:

<TABLE>
<CAPTION>

                                               For the Quarter Ended June 30,
(Dollars in Thousands)                                1999          1998
-----------------------------------------------------------------------------
<S>                                               <C>           <C>
Interest-bearing demand - Average balance          $ 286,450     $ 260,087
Rate                                                   2.45%         2.77%

Savings - Average balance                             81,700        87,930
Rate                                                   2.13%         2.71%

Time certificates of deposit
 of $100,000 or more - Average balance               654,163       600,129
Rate                                                   4.58%         5.25%

Other time deposits - Average balance                238,027       272,026
Rate                                                   4.36%         4.98%


</TABLE>

             The  58-basis point reduction of the rates paid
on  interest  bearing  deposits was slightly  offset  by  an
average $50 million of borrowings from the Federal Home Loan
Banks ("FHLB") with an average rate in the quarter of 4.84%.
There  were  no borrowings outstanding with the FHLB  during
the 3 months ended June 30, 1998.

      The  net  interest spread is defined as the  yield  on
interest  earning  assets less the rates paid  on  interest-
bearing  liabilities.  For the three months ended  June  30,
1999  and  1998, the net interest spread declined one  basis
point to 3.52% from 3.53%, respectively.

      The  net  interest margin is defined as the annualized
difference  between  interest income  and  interest  expense
divided  by average interest earning assets.  For the  three
months ended June 30, 1999 and 1998, the net interest margin
was  4.26%  and  4.36% respectively.  The  decrease  in  the
margin  is  primarily  the  result  of  the  growth  of  the
Company's  earning assets, which include non-accrual  loans,
being funded primarily by interest-bearing liabilities.


Net Interest Income-Six-Month Results
-------------------------------------

      For  the  six months ended June 30, 1999, net interest
income   before   the  provision  for  credit   losses   was
$35,297,000, representing a $2,644,000, or 8.1%, growth over
the corresponding period of a year ago.

     Total interest income for the six months ended June 30,
1999, was $62,457,000 compared to $60,879,000, a $1,578,000,
or 2.6%, growth over the corresponding period of a year ago.
The  increase  is  the  result of  an  increase  of  average
interest  earning assets partially offset by a reduction  of
the yield on interest earning assets.

      The  net  growth of average earning assets was  $134.2
million represented by increases of $149.4 million and $24.5
million  for  loans and leases and securities, respectively,
and  a decrease of $39.8 million for federal funds sold  and
securities purchased under agreements to resell.

      The yield on interest earning assets declined to 7.68%
for  the  six months ended June 30, 1999 from 8.16% for  the
corresponding  period  of a year  ago.  The  yields  on  all
categories of earning assets declined with the most  notable
reduction being the yield on loans and leases which declined
from  10.31%  to  9.25%. In addition to  a  decline  in  the
national prime rate of interest (the average national  prime
rate  of interest during the six months ended June 30,  1999
and  1998,  was 7.75% and 8.5%, respectively),  loan  yields
were  also negatively impacted by an increase in the average
of non-accrual loans. For the six months ended June 30, 1999
and  1998, average non-accrual loans were $36.2 million  and
$12.1 million, respectively.

      Total  interest expense for the six months ended  June
30,   1999   and  1998,  was  $27,160,000  and  $28,226,000,
respectively, representing a $1,066,000, or 3.8%,  decrease.
This  decrease  is  due to a lower cost of funds,  partially
offset   by   an   increase  of  average  interest   bearing
liabilities.

      The  cost of funds decreased 49-basis points to  4.11%
from 4.60%, for the six-month period ended June 30, 1999 and
1998,  respectively.  The decrease was primarily due to  the
reduced  rates  paid on all categories of  interest  bearing
deposits.  The  average balance and the rates  paid  on  the
deposit categories were as follows for the six months  ended
June 30, 1999 and 1998:

<TABLE>
<CAPTION>

(Dollars in Thousands)                                 1999         1998
---------------------------------------------------------------------------
<S>                                                <C>          <C>
Interest-bearing demand - Average balance           $ 284,213    $ 246,520
Rate                                                    2.40%        2.59%

Savings - Average balance                              80,545       91,480
Rate                                                    2.13%        2.74%

Time certificates of deposit of $100,000
 or more - Average balance                            635,392      598,023
Rate                                                    4.62%        5.27%

Other time deposits - Average balance                 247,681      260,785
Rate                                                    4.45%        4.98%

</TABLE>

            Partially offsetting the cost of funds reduction
due  to  the rates paid on average interest bearing deposits
was the 4.80% average rate paid on the $46.2 million average
FHLB  borrowings. During the six months ended June 30,  1998
there were no borrowings from the FHLB.

             Average  interest-bearing liabilities increased
by  $97.8 million during the six months ended June 30,  1999
compared  to  the corresponding period of a  year  ago.  The
increase was the result of a $51.0 million growth of average
interest  bearing deposits and a $46.8 million  increase  of
non-deposit interest-bearing liabilities, namely, the  $46.2
million average FHLB borrowings as discussed above.

      For  the six months ended June 30, 1999 and 1998,  the
net  interest spread increased one basis point to 3.57% from
3.56%, respectively.

      For  the six months ended June 30, 1999 and 1998,  the
net interest margin was 4.34% and 4.37%, respectively.


Provision for Credit Losses
---------------------------

      For the quarter ended June 30, 1999, the provision for
credit  losses  was $500,000.  There was  no  provision  for
credit  losses for the corresponding period of a  year  ago.
For the six months ended June 30, 1999, there was $2,000,000
provision  for  credit losses representing  an  increase  of
$2,000,000 compared to the same period of 1998.

      The  amount  of  the provision for  credit  losses  is
determined  by management and is based upon the  quality  of
the  loan portfolio, management's assessment of the economic
environment,  evaluations  made by  regulatory  authorities,
historical   loan   loss  experience,   collateral   values,
assessment of borrowers' ability to repay, and estimates  of
potential  future  losses.  Please refer to  the  discussion
"Allowance for Credit Losses", following.


Non-Interest Income
-------------------

      Non-interest  income for the quarter  ended  June  30,
1999,  totaled $1,943,000, representing a $131,000, or 7.2%,
increase over the $1,812,000 for the quarter ended June  30,
1998.   This  increase  was  primarily  due  to  commissions
associated  with standby and commercial letters  of  credit,
included in service charges and commissions.

      For  the  six months ended June 30, 1999, non-interest
income totaled $3,795,000 representing a $210,000, or  5.9%,
increase  compared to $3,585,000 for the  six  months  ended
June  30,  1998.   The net increase was due  to  commissions
associated  with  standby and commercial letters  of  credit
offset  by  a  reduction  of income  from  escrow  services,
included  in the non-interest income category called  other.
The Bank's escrow subsidiary was closed in the first quarter
of 1999.


Non-Interest Expense
--------------------

      For the three months ended June 30, 1999, non-interest
expense  was $7,781,000, representing a $275,000,  or  3.7%,
increase over $7,506,000 for the corresponding period  of  a
year  ago.  The increase of $599,000, or 13.7%, in  salaries
and employee benefits,  was primarily due to the accrual for
deferred  compensation for the Company's Chairman and  Chief
Executive Officer. Partially offsetting this increase was  a
$399,000  decline  of  net other real estate  owned  expense
(income). The decline is primarily due to net gains  on  the
sale  of OREO properties. During the quarter ended June  30,
1999  and  1998, net gains on the sale of OREO were $569,000
and  $9,000,  respectively. For the quarter ended  June  30,
1999,  and 1998, the Company's efficiency ratio, defined  as
non-interest  expense divided by the  sum  of  net  interest
income  plus  non-interest  income,  was  39.9%  and  40.6%,
respectively.


            For  the  six months ended June 30,  1999,  non-
interest  expense was $15,376,000, representing a  $566,000,
or   3.8%,  increase  over  $14,810,000  reported  for   the
corresponding period of a year ago. The net increase was due
to  the  increase  in  salaries  and  employee  benefits  of
$776,000,  primarily the result of the accrual for  deferred
compensation discussed above, and a $299,000 increase of the
other   category  of  non-interest  expense.  The   $299,000
increase  was  primarily due to the  write-off  of  goodwill
associated  with the escrow subsidiary which was  closed  in
the  first quarter of 1999. The above were partially  offset
by  the reduced net other real estate owned expense (income)
of  $665,000. The decline is primarily due to net  gains  on
the  sale  of  OREO properties. During the six months  ended
June  30, 1999 and 1998, net gains on the sale of OREO  were
$720,000 and $23,000, respectively. For the six months ended
June  30,  1999, the Company's efficiency ratio  was  39.3%,
comparing favorably to 40.9% for the corresponding period of
1998.


Provision for Income Taxes
--------------------------

      For  the  quarter ended June 30, 1999  and  1998,  the
provision  for  income taxes was $4,216,000 and  $4,147,000,
respectively, representing effective tax rates of 37.5%  and
37.7%.

      For  the six months ended June 30, 1999, the provision
for   income   taxes   was   $8,135,000,   and   $7,954,000,
respectively,  representing  37.5%  and  37.1%  of   pre-tax
income.


FINANCIAL CONDITION
-------------------

      As  of  June  30,  1999, the following  balance  sheet
records were attained:
       O    Total assets of $1,706.9 million
       O    Total deposits of $1,437.3 million
       O    Total loans and leases of $848.9 million

            Stockholders'  equity was $152.5  million,  down
from $163.0 million, as of December 31, 1998, primarily  due
to  the  stock  repurchase program initiated in  the  fourth
quarter, 1998 and completed in the second quarter, 1999.

            The  increase of total assets from December  31,
1998 to June 30, 1999 is primarily due to the growth of  $60
million  in  gross  loans  and leases  and  $16  million  in
securities  funded  by  a $66 million reduction  of  federal
funds  sold  and  securities purchased under  agreements  to
resell, a $56 million increase of deposits and a $15 million
increase  in  borrowings  from  the  FHLB.  The  above  were
partially  offset  by the repurchase of  an  additional  $17
million  of  Company  stock and payment  of  a  $30  million
liability on securities awaiting payment as of December  31,
1998.

Loans
-----

      The  $60.0  million, or 7.6%, growth  was  represented
primarily  by a $30.7 million and $22.7 million increase  of
commercial   loans  and  real  estate  conventional   loans,
respectively.  The  10.0%  growth  in  the  commercial  loan
portfolio  was primarily in the trade-financing  area  which
increased  $27.0  million.  The growth of this  category  of
loan  reflects  the growth in international  trade  and  new
customer  relationships. Trade financing loans are  made  by
the  Bank's  International Division which,  in  addition  to
granting  loans  to finance the import and export  of  goods
between the United States and countries in the Pacific  Rim,
also  provides letters of credit and other related services.
The  Bank  does  not  make loans to foreign  banks,  foreign
government  or  their  central  banks,  or  commercial   and
industrial loans to entities domiciled outside of the United
States, except for the extension of overdraft privileges  to
its  foreign correspondent banks on a limited, case by case,
basis.

             The 8.6% growth in the real estate conventional
loans portfolio was due to a $15.3 million increase of  real
estate conventional loans secured by first trust deeds and a
$7.5  million increase of commercial loans secured by junior
real estate liens.

      The following table sets forth the amount of loans and
leases  outstanding by category and the percentage  of  each
category to total loans and leases outstanding:

<TABLE>
<CAPTION>

                                    June 30, 1999          December 31, 1998
(In Thousands)                    Amount  Percentage     Amount    Percentage
-----------------------------------------------------------------------------
<S>                             <C>         <C>         <C>         <C>
Commercial                       $339,878    40.04%      $309,198    39.19%
Real Estate - Construction        185,501    21.85%       177,737    22.53%
Real Estate - Conventional        286,574    33.76%       263,869    33.45%
Installment                            22       N/A            37       N/A
Other Loans                        20,725     2.44%        22,302     2.83%
Leveraged Leases                   16,239     1.91%        15,802     2.00%
                                 --------------------------------------------
Total                            $848,939   100.00%      $788,945   100.00%
                                 ============================================
N/A = Percentage less than 0.01

</TABLE>

Non-Performing Assets
---------------------

      A  certain degree of risk is inherent in the extension
of  credit.   Management has credit  policies  in  place  to
minimize the level of loan losses and non-performing  loans.
The  Company performs a quarterly assessment of  the  credit
portfolio  to  determine  the  appropriate  level   of   the
allowance.  Included in the assessment is the identification
of  loan impairment.  A loan is identified as impaired  when
it  is  probable  that interest and principal  will  not  be
collected  according to the contractual terms  of  the  loan
agreement.   Loan impairment is measured by  estimating  the
expected  future  cash  flows and discounting  them  at  the
respective  effective  interest  rate  or  by  valuing   the
underlying collateral.

       The   Company  has  a  policy  of  classifying  loans
(including an impaired loan) which are 90 days past  due  as
to  principal  and/or interest as non-accrual  loans  unless
management  determines  that the fair  value  of  underlying
collateral is substantially in excess of the loan amount  or
other  circumstances  justify treating  the  loan  as  fully
collectible.  After a loan is placed on non-accrual  status,
any  interest previously accrued, but not yet collected,  is
reversed  against  current income.  A loan  is  returned  to
accrual  status only when the borrower has demonstrated  the
ability to make future payments of principal and interest as
scheduled,  and  the borrower has demonstrated  a  sustained
period  of  repayment  performance in  accordance  with  the
contractual  terms.  Interest received on non-accrual  loans
generally  is  either  applied  as  principal  reduction  or
reported  as  recoveries on amounts previously charged  off,
according  to management's judgment as to the collectability
of principal.

      The  following table provides information with respect
to   the   Company's  past  due  loans,  non-accrual  loans,
restructured loans and other real estate owned, net,  as  of
the dates indicated:

<TABLE>
<CAPTION>

(IN THOUSANDS)                        June 30, 1999    December 31, 1998
------------------------------------------------------------------------
<S>                                 <C>                 <C>

Loans 90 Days or More
 Past Due and Still
 Accruing                             $        -          $      780
Non-Accrual Loans                         41,032              20,790
Total Past Due Loans                      41,032              21,570
Restructured Loans                         8,865              10,440
Total Non-Performing Loans                49,897              32,010
Other Real Estate
 Owned, Net                               12,242               6,885
------------------------------------------------------------------------
Total Non-Performing Assets           $   62,139          $   38,895
                                      ==========          ==========
</TABLE>

     Total non-performing assets increased to $62.1 million,
as  of June 30, 1999, from $38.9 million, as of December 31,
1998, representing a $23.2 million, or 59.8%, increase.


Loans 90 Days or More Past Due and Still Accruing
-------------------------------------------------

      There  are no loans that are 90 days or more past  due
and still accruing as of June 30, 1999.


Non-Accrual Loans
-----------------

      As  of  June  30, 1999, non-accrual loans  were  $41.0
million,  an  increase of $20.2 million from year-end  1998,
but  a  decline from the end of the first quarter 1999.  The
increase from December 31, 1998 is primarily due to a  $30.9
million  construction loan for a casino in  Las  Vegas.  The
loan  is  collateralized  by  a  first  trust  deed  on  the
building, second trust deeds on an associated hotel and on a
RV  park,  and  by  a first trust deed on undeveloped  land.
There  also was a take-out commitment from another financial
institution  to pay off the loan at the end of construction.
A  review  of the collateral indicates sufficient value  for
the  full  recapture  of principal, interest  and  estimated
expenses.  However, the Company cannot determine the  timing
of  the  liquidation of the assets nor the actual values  at
that time.

             The balance of non-accrual loans was positively
impacted  by  an $8.6 million transfer to other real  estate
owned ("OREO") and a charge-off of $2.3 million related to a
$12.6 million loan placed on non-accrual status in November,
1998.

      The  following  table breaks out  the  Company's  non-
accrual  loans by category as of June 30, 1999 and  December
31, 1998:

<TABLE>
<CAPTION>


(IN THOUSANDS)           June 30, 1999     December 31, 1998
------------------------------------------------------------
<S>                          <C>                   <C>

Commercial                    $  8,238              $ 19,202
Real Estate - Construction      30,944                   277
Real Estate - Conventional       1,850                 1,309
Other Loans                          -                     2
------------------------------------------------------------
Total                         $ 41,032              $ 20,790
                              ========              ========
</TABLE>

              The  $11.0 million decline of commercial  non-
accrual  loans  is  due to the transfer to  OREO,  discussed
above.   The   $30.7  million  increase   of   real   estate
construction  non-accrual loans is for the reason  discussed
above.

      Of  the  $41.0  million  of non-accrual  loans,  $32.8
million  are  collateralized by real  estate  property  with
appraisal value considerably in excess of the carrying value
of  the loans, providing substantial protection against  the
loss of principal.


      The  following  table analyzes the  increase  in  non-
accrual loans during the six months ended June 30, 1999:

<TABLE>
<CAPTION>

------------------------------------------------------------
(IN THOUSANDS)
------------------------------------------------------------
<S>                                        <C>
Balance, December 31, 1998                  $   20,790
Add: Loans placed on non-accrual                37,490
Less: Charge-offs                               (4,192)
      Returned to accrual status                (1,502)
      Repayments                                (2,767)
      Transfer to OREO                          (8,787)
------------------------------------------------------------
Balance, June 30, 1999                      $   41,032
                                            ==========

</TABLE>

Restructured Loans
------------------

      The  balance of restructured loans as of June 30, 1999
was  $8.9  million compared to $10.4 million as of  December
31,  1998,  representing a $1.6 million, or 15.1%, decrease.
The  decrease was primarily due to the pay-off in full of  a
$1.4  restructured loan in the second quarter of 1999, which
also  resulted  in a $1.0 million recovery to the  allowance
for credit losses.  A loan is categorized as restructured if
the  original  interest  rate on such  loan,  the  repayment
terms,  or both, are modified due to a deterioration in  the
financial condition of the borrower.  Restructured loans may
also  be  put  on a non-accrual status in keeping  with  the
Bank's  policy of classifying loans which are 90  days  past
due  as  to  principal and/or interest.  Restructured  loans
which  are  non-accrual loans are not, however, included  in
the  balance of restructured loans, but are included in  the
total  of  non-accrual loans.  As of June  30,  1999,  three
restructured  loans  totaling $612,000 were  on  non-accrual
status.   As of June 30, 1999, restructured loans  excluding
those  on  non-accrual  status  totaled  $8.9  million   and
consisted of 10 loans compared to $10.4 million and 11 loans
as  of December 31, 1998.  The weighted average yield of the
restructured loans was 9.80% as of June 30, 1999.

      There  are no commitments to lend additional funds  on
any of the restructured loans.


Other Real Estate Owned
-----------------------

      As  of June 30, 1999, other real estate owned, net  of
valuation allowance of $2.0 million, totaled $12.2  million,
representing an increase of $5.4 million, or 77.8%, from the
net  balance of $6.9 million, net of valuation allowance  of
$2.0  million,  as  of December 31, 1998.  The  increase  is
mainly  due  to  the Company's taking title to  the  primary
collateral  on the $12.6 million non-accrual loan  discussed
above.  As  of  June 30, 1999 and December  31,  1998,  OREO
consisted of 16 properties and 22 properties, respectively.


      The  outstanding  OREO properties are  all  physically
located  in  the  Bank's market area.  They  include  single
family   residences,  condominiums,  commercial   buildings,
industrial  facilities and land.  Eight properties  comprise
the  land category of OREO.  The Company does not intend  to
develop these properties; rather, the intent is to sell  the
land undeveloped.

The  following table sets forth OREO by property type as  of
the dates indicated:


<TABLE>
<CAPTION>

                                 June 30,       December 31,
------------------------------------------------------------
(In Thousands)                     1999            1998
------------------------------------------------------------
<S>                             <C>            <C>
Property Type
-------------
Single-Family Residential        $    266       $    752
Condominium                             -            485
Land                                3,536          3,621
Retail Facilities                   1,890          4,027
Industrial Facilities               8,550              -
                                 --------       --------
Less: Valuation Allowance          (2,000)        (2,000)
                                 --------       --------
Total                            $ 12,242       $  6,885
                                 ========       ========

</TABLE>

Impaired Loans
--------------

      A  loan  is identified as impaired when it is probable
that  interest and principal will not be collected according
to  the  contractual  terms  of the  loan  agreement.   Loan
impairment  is  measured by estimating the  expected  future
cash  flows and discounting them at the respective effective
interest  rate or by valuing the underlying collateral.   Of
the  $47.0 million of outstanding impaired loans as of  June
30,  1999,  $2.1  million are included  in  the  balance  of
restructured loans and are performing pursuant to the  terms
and  conditions  of the restructuring. The  following  table
discloses  pertinent  information  as  it  relates  to   the
Company's impaired loans as of the dates indicated:


<TABLE>
<CAPTION>


------------------------------------------------------------------
(In Thousands)                       Jun.30, 1999     Dec.31, 1998
------------------------------------------------------------------
<S>                                   <C>               <C>
Recorded Investment with Related
 Allowance                             $47,032           $20,746
Recorded Investment with no
 Related Allowance                           -             1,519
Total Recorded Investment               47,032            22,265
Allowance for Impaired Loans             4,960             3,250
------------------------------------------------------------------

</TABLE>

             The  increase  in  the recorded  investment  of
impaired loans is due to the $31 million casino construction
loan discussed above.

      The  average  balance  of impaired  loans  before  the
allowance  was $44.6 million for the six months  ended  June
30,  1999  and  $13.5  million for the twelve  months  ended
December 31, 1998.

      For  the  six  months ended June 30,  1999  and  1998,
interest  income recognized on impaired loans  was  $548,000
and  $583,000,  respectively.  Of  the  amount  of  interest
income recognized during the six months ended June 30,  1999
and  1998,  no interest was recognized under the cash  basis
method.

      Management  cannot  predict the extent  to  which  the
current  economic  environment, including  the  real  estate
market,  may  continue to improve or  worsen,  or  the  full
impact  such  environment  may  have  on  the  Bank's   loan
portfolio.   Furthermore, as the Bank's  primary  regulators
review the loan portfolio as part of their routine, periodic
examinations  of  the  Bank, their  assessment  of  specific
credits  may  affect the level of the Bank's  non-performing
loans.   Accordingly, there can be no assurance  that  other
loans  will not be placed on non-accrual, become 90 days  or
more  past due, have terms modified in the future, or become
OREO.


Allowance for Credit Losses
---------------------------

      As  of June 30, 1999, the balance of the allowance for
credit  losses  was  $19.1 million,  representing  2.25%  of
outstanding loans and leases.  This compares to an allowance
for  credit losses of $19.4 million as of December 31, 1998,
representing 2.46% of outstanding loans and leases.

      The  table below summarizes the activity in the  total
allowance  for  credit  losses (which  amount  includes  the
allowance  on  impaired loans) for the six months  ended  as
indicated:

<TABLE>
<CAPTION>

-------------------------------------------------------------
(IN THOUSANDS)                June 30, 1999    June 30, 1998
-------------------------------------------------------------
<S>                               <C>              <C>
Balance, Beginning of Period       $ 19,381         $ 16,776
Provision for Credit Losses           2,000                -
Charge-offs                          (4,157)          (1,639)
Recoveries                            1,837              401
Net Charge-offs                      (2,320)          (1,238)
Balance, End of Period             $ 19,061         $ 15,538
-------------------------------------------------------------

</TABLE>

     As of June 30, 1999, the allowance represents 38.2% and
46.5%  of  non-performing loans and  of  non-accrual  loans,
respectively.   As  of  December  31,  1998,  the  allowance
represented 60.5% and 93.2% of non-performing loans  and  of
non-accrual  loans,  respectively.   The  decline  of  these
ratios  is  due  to  the  increase of non-accrual  loans  as
discussed above.


            The amount of the provision for credit losses is
that  required  to maintain an allowance for  credit  losses
that is adequate to cover probable credit losses related  to
specifically  identified loans as well  as  probable  credit
losses  inherent  in  the remainder of the  loan  and  lease
portfolio.   Management evaluates the  loan  portfolio,  the
economic   environment,  historical  loan  loss  experience,
collateral  values and assessments of borrowers' ability  to
repay  in determining the amount of the allowance for credit
losses.

       The   allowance   is  based  on  ongoing,   quarterly
assessments of the probable estimated losses inherent in the
loan  and  lease  portfolio, and to a lesser extent,  unused
commitments to provide financing.  The Company's methodology
for  assessing the appropriateness of the allowance consists
primarily of the use of a formula allowance.

      This formula allowance is calculated by applying  loss
factors  to outstanding loans and leases and certain  unused
commitments, in each case based on the internal risk  rating
of  such  loans,  pools  of loans,  leases  or  commitments.
Changes  in risk rating of both performing and nonperforming
loans  affect  the  amount of the formula  allowance.   Loss
factors   are   based  on  the  Company's  historical   loss
experience and may be adjusted for significant factors that,
in  management's judgement, affect the collectibility of the
portfolio  as  of  the evaluation date.   Loss  factors  are
described as follows:

     -    Problem graded loan loss factors represent percentages
       which have proven accurate over time.  Such factors are
       checked against and supported by migration analysis which
       tracks loss experience over a five-year period.

     -     Pass  graded loan loss factors are based  on  the
       approximate average annual net charge-off rate over an eight-
       year period.

     -     Pooled loan loss factors (not individually graded
       loans) are based on probable net charge-offs.  Pooled loans
       are loans and leases that are homogeneous in nature, such as
       residential mortgage loans and small business loans.

      Management  believes  that the  allowance  for  credit
losses  is  adequate  to  cover known  and  inherent  losses
related to loans and leases outstanding as of June 30, 1999.


Securities
----------

      The  Company  classifies its  securities  as  held  to
maturity  or  available for sale.  Securities classified  as
held to maturity are those that the Company has the positive
intent and ability to hold until maturity.  These securities
are carried at amortized cost.

     Securities that could be sold in response to changes in
interest  rates,  increased loan  demand,  liquidity  needs,
capital   requirements   or  other  similar   factors,   are
classified   as  securities  available  for   sale.    These
securities are carried at fair value, with unrealized  gains
or losses reflected net of tax in stockholders' equity.

       As  of  June  30,  1999,  the  Company  recorded  net
unrealized  losses  of $6,456,000 on its  available-for-sale
portfolio.    Stockholders'  equity   includes   $3,742,000,
representing the net unrealized loss, net of tax.

      The  amortized  cost,  gross unrealized  gains,  gross
unrealized losses and fair value of securities at  June  30,
1999 and December 31, 1998 were as follows:


<TABLE>
<CAPTION>

                                                Gross       Gross
(In Thousands)                      Amortized   Unrealized  Unrealized   Fair
June 30, 1999                       Cost        Gains       Losses       Value
----------------------------------------------------------------------------------
<S>                                <C>         <C>         <C>          <C>
Securities Held to Maturity
---------------------------
U.S. Government Agencies            $   1,919   $       -   $      (9)   $   1,910
Collateralized Mortgage Obligations        15           -           -           15
                                    ----------------------------------------------
Total Securities Held to Maturity   $   1,934   $       -   $      (9)   $   1,925
                                    ==============================================

Securities Available for Sale
-----------------------------
U.S. Government Agencies            $  19,347   $       -   $     (12)   $  19,335
Mortgage Backed Securities            153,106           -      (3,277)     149,829
Corporate Notes                        50,019           -        (468)      49,551
Collateralized Mortgage Obligations   252,528           -      (1,795)     250,733
Asset Backed Securities               288,342           -        (904)     287,438
Other Securities                        6,066           -           -        6,066
                                    ----------------------------------------------
Total Securities Available for Sale $ 769,408   $       -   $  (6,456)   $ 762,952
                                    ==============================================




                                                Gross       Gross
(In Thousands)                      Amortized   Unrealized  Unrealized   Fair
December 31, 1998                   Cost        Gains       Losses       Value
----------------------------------------------------------------------------------
Securities Held to Maturity
---------------------------
U.S. Government Agencies            $  24,594   $      61   $       -    $  24,655
Collateralized Mortgage Obligations        22           -           -           22
                                    ----------------------------------------------
Total Securities Held to Maturity   $  24,616   $      61   $       -    $  24,677
                                    ==============================================

Securities Available for Sale
-----------------------------
U. S. Treasuries                    $   1,859   $       3   $       -    $   1,862
U. S. Government Agencies              59,604         171           -       59,775
Mortgage Backed Securities             72,799         408           -       73,207
Corporate Notes                        34,925           -          (1)      34,924
Collateralized Mortgage Obligations   246,026         621           -      246,647
Asset Backed Securities               257,638       1,970           -      259,608
Commercial Papaer                      39,860           -           -       39,860
Other Securities                        8,289           -           -        8,289
                                    ----------------------------------------------
Total Securities Available for Sale $ 721,000   $   3,173   $      (1)   $ 724,172
                                    ==============================================

</TABLE>
<PAGE>

There  were  no  sales of securities during the  six  months
ended June 30, 1999 and 1998.

Deposits
--------

      The Company's deposits totaled $1,437.3 million as  of
June  30,  1999,  representing a  $56.4  million,  or  4.1%,
increase  from  total  deposits of $1,380.9  million  as  of
December   31,  1998.  All  deposit  categories  experienced
increases  with  the exception of other time deposits  which
decreased  $42.1  million, or 15.6%.  Time  certificates  of
deposit  of  $100,000 or more and demand deposits  increased
$71.1  million  or  11.9%,  and  $19.6  million,  or  13.1%,
respectively, representing the largest growth components.

      There were no brokered deposits outstanding as of June
30,  1999 and December 31, 1998.  The Company believes  that
the  majority of its deposit customers have strong  ties  to
the Bank.  Although the Company has a significant amount  of
time  deposits of $100,000 or more having maturities of  one
year  or  less,  in the past the depositors  have  generally
renewed their deposits at their maturity.  Accordingly,  the
Company believes its deposit source to be stable.

      The  maturity schedule of time certificates of deposit
of $100,000 or more, as of June 30, 1999, is as follows:

<TABLE>
<CAPTION>

-------------------------------------------------------
(IN THOUSANDS)
-------------------------------------------------------
<S>                                         <C>
3 Months or Less                             $  442,875
Over 3 Months Through 6 Months                  115,756
Over 6 Months Through 12 Months                 111,670
Over 12 Months                                      439
-------------------------------------------------------
Total                                        $  670,740
                                             ==========
-------------------------------------------------------


</TABLE>

Other Borrowings
----------------

      As of June 30, 1999, the Company has three sources  of
other borrowings.

      Subordinated debt is comprised of a $40 million public
offering issuance of 8.375% subordinated notes due August 1,
2007.   Proceeds  of  $38.7  million,  net  of  underwriting
discount  of $1.3 million, were received by the  Company  at
date  of  issuance.  The discount is amortized  as  a  yield
adjustment over the 10-year life of the notes.

      The  Bank has obtained advances from the Federal  Home
Loan  Bank  of  San  Francisco (the "FHLB")  totaling  $50.0
million.  The advances are under an existing line of  credit
whereby the FHLB has granted the Bank a line of credit equal
to  25 percent of its assets.  The following relates to  the
four outstanding advances as of June 30, 1999:

<TABLE>
<CAPTION>


 Maturity                 Amount           Fixed Rate of Interest
 --------                 ------           ----------------------
<S>                   <C>                      <C>
Nov. 1, 2000           $25,000,000              4.53%
Jan.31, 2001            10,000,000              5.19%
Apr.30, 2001            10,000,000              4.92%
Jul.15, 2002             5,000,000              5.61%

</TABLE>

The total outstanding of $50 million of advances as of June
30, 1999 has a composite fixed rate of interest of 4.85%.

     As   of   June  30,  1999,  the  Bank  had  $1  million
outstanding  of  federal  funds purchased,  representing  an
overnight  borrowing  from one of its major  correspondents.
The rate of interest paid on the federal funds purchased was
5.25%. (Reference also discussion of liquidity following.)


Capital Resources
-----------------

      Stockholders' equity totaled $152.5 million as of June
30,  1999, a decrease of $10.6 million, or 6.5%, from $163.0
million as of December 31, 1998. The net decrease from year-
end  1998 was due to the repurchase of $17.2 million of  the
Company's  stock. The stock repurchase program was completed
in  the  second quarter. A total of 1.4 million shares  were
repurchased, at a total cost of $27.6 million.  The  decline
of  stockholders' equity due to the repurchase was partially
offset  by  net income of $13.6 million less cash  dividends
declared  of $2.0 million less the net change in securities'
valuation of $5.6 million plus the exercise of stock options
and related tax benefits of $0.6 million.

     Capital ratios for the Company and for the Bank were as
follows as of the dates indicated:


<TABLE>
<CAPTION>

----------------------------------------------------------------------------
                                      Well-Capitalized     Jun.30,   Dec.31,
                                        Requirements        1999      1998
----------------------------------------------------------------------------
<S>                                       <C>            <C>       <C>
GBC Bancorp
Tier 1 Leverage Ratio                        5%             9.23%     9.75%
Tier 1 Risk-Based Capital Ratio              6%            10.61%    11.06%
Total Risk-Based Capital Ratio              10%            14.51%    14.98%
General Bank
Tier 1 Leverage Ratio                        5%            10.00%     9.49%
Tier 1 Risk-Based Capital Ratio              6%            11.50%    10.77%
Total Risk-Based Capital Ratio              10%            12.75%    12.02%
----------------------------------------------------------------------------

</TABLE>

      For  the six months ended June 30, 1999, the ratio  of
the Company's average stockholders' equity to average assets
was 9.49%.  For the year ended December 31, 1998, this ratio
was  10.01%. The decrease of the ratio is mainly the  result
of the stock repurchase program.

             As  previously discussed, pursuant to the Dutch
Auction   self  tender  program,  the  Company   repurchased
approximately 1,328,000 of its shares at $22  per  share  on
July  20,  1999.  The  transaction will reduce  the  capital
ratios of the Company and the Bank as a $16 million dividend
from the Bank to the Company was used to partially fund  the
purchase.  Notwithstanding these transactions, the Company's
and the Bank's capital ratios remain in excess of regulatory
requirements.

Liquidity and Market Risk
-------------------------

      Liquidity measures the ability of the Company to  meet
fluctuations  in deposit levels, to fund its operations  and
to  provide  for  customers'  credit  needs.   Liquidity  is
monitored  by  management  on  an  on-going  basis.    Asset
liquidity  is  provided  by  cash and  short-term  financial
instruments which include federal funds sold and  securities
purchased  under agreements to resell, unpledged  securities
held  to  maturity  maturing within one year  and  unpledged
securities  available for sale.  These sources of  liquidity
amounted to $658.4 million, or 38.6% of total assets, as  of
June 30, 1999, compared to $666.7 million, or 39.7% of total
assets, as of December 31, 1998.

      To  further supplement its liquidity, the Company  has
established federal funds lines with correspondent banks and
three  master  repurchase agreements  with  major  brokerage
companies.  In August, 1992, the Federal Home Loan  Bank  of
San  Francisco  ("FHLB") granted the Bank a line  of  credit
equal  to 25 percent of assets with payment terms up to  360
months.   Management believes its liquidity  sources  to  be
stable and adequate.

     As of June 30, 1999, total loans and leases represented
59.1%  of total deposits.  This compares to 60.0% and  57.1%
as of March 31, 1999 and December 31, 1998, respectively.

      The  liquidity of the parent company, GBC Bancorp,  is
primarily dependent on the payment of cash dividends by  its
subsidiary,  General  Bank,  (the  "Bank")  subject  to  the
limitations  imposed by the Financial Code of the  State  of
California.   For the six months ended June  30,  1999,  the
Bank declared cash dividends of $2.0 million to GBC Bancorp.
As  previously discussed, pursuant to the Dutch Auction self
tender   program,  GBC  Bancorp  repurchased   approximately
1,328,000 of its shares at $22 per share on July 20, 1999. A
$16  million  cash dividend by the Bank to GBC  Bancorp  was
used  to partially fund the repurchase. The transaction will
reduce  the capital ratios of the Bank. Notwithstanding  the
dividend payment, the Bank's capital ratios remain in excess
of regulatory requirements.


"GAP" measurement
-----------------

      While  no  single measure can completely identify  the
impact  of changes in interest rates on net interest income,
one gauge of interest rate sensitivity is to measure, over a
variety  of  time  periods, contractual differences  in  the
amounts  of  the  Company's rate sensitive assets  and  rate
sensitive   liabilities.   These  differences,  or   "gaps",
provide an indication of the extent that net interest income
may  be  affected  by  future  changes  in  interest  rates.
However,  these contractual "gaps" do not take into  account
timing  differences between the repricing of assets and  the
repricing of liabilities.

     A positive gap exists when rate sensitive assets exceed
rate  sensitive  liabilities and indicates  that  a  greater
volume  of  assets  than liabilities will reprice  during  a
given  period.   This  mismatch may enhance  earnings  in  a
rising rate environment and may inhibit earnings when  rates
decline.  Conversely, when rate sensitive liabilities exceed
rate  sensitive  assets, referred to as a negative  gap,  it
indicates  that a greater volume of liabilities than  assets
will  reprice  during  the period. In this  case,  a  rising
interest rate environment may inhibit earnings and declining
rates may enhance earnings.

       "Gap"  reports  originated  as  a  means  to  provide
management with a tool to monitor repricing differences,  or
"gaps",  between  assets  and  liabilities  repricing  in  a
specified  period,  based upon their underlying  contractual
rights.   The  use  of "gap" reports is thus  limited  to  a
quantification   of  the  "mismatch"  between   assets   and
liabilities  repricing within a unique specified  timeframe.
Contractual  "Gap"  reports  cannot  be  used  to   quantify
exposure  to interest rate changes because they do not  take
into account timing differences between repricing assets and
liabilities, and changes in the amount of prepayments.

      As  of  June 30, 1999, there was a cumulative one-year
negative "gap" of $613.2 million, up from $448.2 million  as
of December 31, 1998.

      The  following table indicates the Company's  interest
rate  sensitivity position as of June 30, 1999, and is based
on  contractual  maturities.  It may not  be  reflective  of
positions in subsequent periods:

<TABLE>
<CAPTION>

                                                                 JUNE 30, 1999
                                                           INTEREST SENSITIVITY PERIOD
                               ----------------------------------------------------------------------------------
                               0 to 90     91 to 365    Over 1 Year       Over       Non-Interest
(In Thousands)                   Days        Days        to 5 Years      5 Years    Earning/Bearing         Total
-----------------------------------------------------------------------------------------------------------------
<S>                           <C>         <C>          <C>              <C>          <C>           <C>
Earning Assets:
Securities Available for Sale  $  14,515   $  10,554    $  60,731        $ 677,152    $       -        $  762,952
Securities Held to Maturity            -           -        1,919               15            -             1,934
Federal Funds Sold & Securities
 Purchased Under Agreement to
  Resell                          35,000           -            -                -            -            35,000
Loans and Leases (1) (2)         579,621      15,356       99,696          113,234            -           807,907
Non-Earning Assets (2)                 -           -            -                -       99,145            99,145
                               ----------------------------------------------------------------------------------
Total Assets                   $ 629,136   $  25,910    $ 162,346        $ 790,401    $  99,145        $1,706,938
                               =========   =========    =========        =========    =========        ==========

Source of Funds for Assets:
Deposits:
 Demand - N/B                  $       -   $       -    $       -        $       -    $ 168,992        $  168,992
 Interest Bearing Demand         285,022           -            -                -            -           285,022
 Savings                          84,195           -            -                -            -            84,195
 TCD'S Under $100,000            134,869      92,895          606                -            -           228,370
 TCD'S $100,000 and Over         443,080     227,221          439                -            -           670,740
                               ----------------------------------------------------------------------------------
Total Deposits                 $ 947,166   $ 320,116    $   1,045        $       -    $ 168,992        $1,437,319
                               =========   =========    =========        =========    =========        ==========

Federal Funds Purchased &
 Securities Sold Under
 Agreement to Resell           $   1,000   $       -    $       -        $       -    $       -        $    1,000
Borrowings from the Federal
 Home Loan Bank                        -           -       50,000                -            -            50,000
Subordinated Debt                      -           -            -           38,941            -            38,941
Other Liabilities                      -           -            -                -       27,205            27,205
Stockholders' Equity                   -           -            -                -      152,473           152,473
                               ----------------------------------------------------------------------------------
Total Liabilities and
 Stockholders' Equity          $ 948,166   $ 320,116    $  51,045        $  38,941    $ 348,670        $1,706,938
                               =========   =========    =========        =========    =========        ==========

Interest Sensitivity Gap       $(319,030)  $(294,206)   $ 111,301        $ 751,460    $(249,525)
Cumulative Interest
 Sensitivity Gap                (319,030)   (613,236)    (501,935)         249,525            -
Gap Ratio (% of
 Total Assets)                     -18.7%      -17.2%         6.5%           44.0%        -14.6%
Cumulative Gap Ratio               -18.7%      -35.9%       -29.4%           14.6%          0.0%


(1) Loans and leases are before unamortized deferred loan fees and allowance for credit losses.
(2) Nonaccrual loans are included in non-earning assets.


</TABLE>



        Effective   asset/liability   management    includes
maintaining adequate liquidity and minimizing the impact  of
future  interest  rate changes on net interest  income.  The
Company attempts to manage its interest rate sensitivity  on
an  on-going  basis through the analysis  of  the  repricing
characteristics of its loans, securities, and deposits,  and
managing  the  estimated net interest income  volatility  by
adjusting  the  terms  of  its interest-earning  assets  and
liabilities, and through the use of derivatives as needed.


Market risk
-----------

      Market risk is the risk of financial loss arising from
adverse  changes in market prices and interest  rates.   The
Company's market risk is inherent in its lending and deposit
taking  activities  to  the extent  of  differences  in  the
amounts   maturing  or  degree  of  repricing   sensitivity.
Adverse  changes  in  market prices and interest  rates  may
therefore  result in diminished earnings and  ultimately  an
erosion of capital.

      Since  the  Company's  profitability  is  affected  by
changes in interest rates, management actively monitors  how
changes in interest rates may affect earnings and ultimately
the  underlying market value of equity.  Management monitors
interest  rate  exposure  through the  use  of  three  basic
measurement  tools  in  conjunction  with  established  risk
limits.   These tools are the expected maturity gap  report,
net  interest income volatility and market value  of  equity
volatility  reports.   The gap report details  the  expected
maturity mismatch or gap between interest earning assets and
interest  bearing  liabilities over a  specified  timeframe.
The  expected  gap differs from the contractual  gap  report
shown  earlier  in  this  section by  adjusting  contractual
maturities  for expected prepayments of principal  on  loans
and amortizing securities as well as the projected timing of
repricing non-maturity deposits.  The following table  shows
the  Company's financial instruments that are  sensitive  to
changes  in  interest rates categorized  by  their  expected
maturity, as of June 30, 1999:

<TABLE>
<CAPTION>


                                       ---------------------------------------------------------------------------
                                       0 to 90        91 to 365        Over 1 Year        Over
(In Thousands)                           Days            Days          to 5 Years        5 Years             Total
------------------------------------------------------------------------------------------------------------------
<S>                                   <C>             <C>             <C>               <C>           <C>
Interest-sensitive Assets:
Securities Available for Sale          $  32,909       $  91,897       $ 512,848         $ 125,298     $   762,952
Securities Held to Maturity                1,934               -               -                 -           1,934
Federal Funds Sold & Securities
 Purchased Under Agreements to
 Resell                                   35,000               -               -                 -          35,000
Loans and Leases (1)                     579,621          15,356          99,696           113,234         807,907
                                       ---------       ---------       ---------         ---------     -----------
Total Interest-earning Assets          $ 649,464       $ 107,253       $ 612,544         $ 238,532     $ 1,607,793
                                       =========       =========       =========         =========     ===========

Interest-sensitive Liabilities:
 Deposits:
 Interest Bearing Demand               $  10,097       $  30,289       $ 188,653         $  55,983     $   285,022
 Savings                                   2,806           8,420          56,130            16,839          84,195
 Time Certificates of Deposit            577,647         320,418           1,045                 -         899,110
                                       ---------       ---------       ---------         ---------     -----------
Total Deposits                         $ 590,550       $ 359,127       $ 245,828         $  72,822     $ 1,268,327
                                       =========       =========       =========         =========     ===========

Federal Funds Purchased &
 Securities Sold Under
 Repurchased Agreements                $   1,000       $       -       $       -         $       -     $     1,000
Borrowing from FHLB                            -               -          50,000                 -          50,000
Subordinated Debt                              -               -               -            38,941          38,941
                                       ---------       ---------       ---------         ---------     -----------
Total Interest-sensitive Liabilities   $ 591,550       $ 359,127       $ 295,828         $ 111,763     $ 1,358,268
                                       =========       =========       =========         =========     ===========

(1) Loans and leases are net of non-accrual loans and before unamortized deferred loan fees and allowance for
    credit losses.

</TABLE>



       Expected   maturities  of  assets   are   contractual
maturities   adjusted  for  projected   payment   based   on
contractual  amortization  and  unscheduled  prepayments  of
principal   as   well  as  repricing  frequency.    Expected
maturities  for deposits are based on contractual maturities
adjusted for projected rollover rates and changes in pricing
for non-maturity deposits.  The Company utilizes assumptions
supported by documented analysis for the expected maturities
of  its  loans and repricing of its deposits and  relies  on
third  party  data providers for prepayment projections  for
amortizing  securities.   The  actual  maturities  of  these
instruments  could vary significantly if future  prepayments
and  repricing differ from the Company's expectations  based
on historical experience.

      The  Company  uses a computer simulation  analysis  to
attempt  to predict changes in the yields earned  on  assets
and the rates paid on liabilities in relation to changes  in
market  interest rates.  The net interest income  volatility
and  market  value of equity volatility reports measure  the
exposure  of earnings and capital respectively, to immediate
incremental  changes in market interest rates as represented
by the prime rate change of 100 to 200 basis points.  Market
value of portfolio equity is defined as the present value of
assets  minus  the  present value  of  liabilities  and  off
balance   sheet  contracts.   The  table  below  shows   the
estimated  impact  of  changes  in  interest  rates  on  net
interest  income and market value of equity as of  June  30,
1999:


<TABLE>
<CAPTION>

                              NET INTEREST          MARKET VALUE OF
CHANGE IN INTEREST         INCOME VOLATILITY       EQUITY VOLATILITY
RATES (BASIS POINTS)       JUNE 30, 1999 (1)       JUNE 30, 1999 (2)
--------------------------------------------------------------------
       <C>                      <C>                     <C>

       +200                     -4.90%                  -13.00%
       +100                     -2.60%                  - 6.60%
       -100                     -0.80%                    5.30%
       -200                     -4.00%                    7.00%

(1) The percentage change in this column represents net interest income
    for 12 months in a stable interest rate environment versus the net
    interest income in the various rate scenarios.

(2) The percentage change in this column represents net portfolio value of
    the Bank in a stable interest rate environment versus the net
    portfolio value in the various rate scenarios.

</TABLE>


      The  Company's primary objective in managing  interest
rate  risk is to minimize the adverse effects of changes  in
interest rates on earnings and capital.  In this regard  the
Company  has  established  internal  risk  limits  for   net
interest  income volatility given a 100 and 200 basis  point
decline in rates of 10% and 15%, respectively, over a twelve
month horizon.  Similarly, risk limits have been established
for  market value of portfolio equity volatility in response
to  a  100 and 200 basis point increase in rates of 10%  and
15%, respectively.


Year 2000
---------

      The Company's main software systems have been licensed
from  large vendors who have provided certifications of year
2000  compliance.  Tests have confirmed such compliance  for
these main software systems.  Certain ancillary systems that
operate  on  personal computers are also  licensed  and  the
vendors  have informed the Company that releases  conforming
to  year  2000 requirements will be received in  1999.   The
Bank  has budgeted $100,000 of expenses related to Year 2000
compliance.    Expenses  to  date  have  been  approximately
$60,000.  Total  expenses  are  expected  to  be  under  the
budgeted  amount.   Management believes that  there  are  no
material  risks  to  the Company from its  computer  systems
related to the Year 2000.

       Certain   operations,  such  as   payroll   and   the
administration of the Company's 401(k) plan, are  outsourced
to    outside   companies.    The   Company   has   obtained
certification  of  their  Year 2000 compliance.   Management
believes  that  there are no material risks to  the  Company
from its outsourced operations related to the Year 2000.

      Non-information  technology systems  are  expected  to
function  well  in year 2000 and beyond.   The  Company  has
requested  written  certification for Year  2000  compliance
from  the  utilities  companies and  the  telecommunications
companies and has received acknowledgement from each company
that they are on target with Year 2000 compliance.

      A  Business Resumption Plan (the "Plan") is  in  place
including a back-up site for data processing in the event of
failure  of the Bank's mainframe computer.  In the  unlikely
event  that the testing and certification procedures of  the
Bank  utilized software did not discover a problem, the Bank
has  in  place manual processing procedures that  have  been
tested  which  would  be followed until  correction  of  the
software problem by the Bank's vendors.

       The  Company  has  sent  questionnaires  to  selected
borrowers representing more than 70% of  outstanding  credit
commitments by dollar volume at the time of the mailing. All
questionnaires  have  now been received  and  reviewed.  The
questionnaire review process, along with ongoing  oversight,
has  resolved all issues where potential adverse  impact  on
credit  quality  was a factor if Year 2000 issues  were  not
addressed.

            Three  credits,  with total commitments  of  $11
million  have  been judged "not sure" in  their  ability  to
ensure  year 2000 compliance. These credits have been placed
on  the  "Watch" list to ensure high visibility and  ongoing
monitoring.  Any  borrowers  unable  to  confirm  Year  2000
compliance in a timely manner will be evaluated to ensure an
adequate  specific  allocation to the allowance  for  credit
losses. Year 2000 compliance will be a factor in all  credit
decisions  and  in the specific allocations  of  a  required
allowance for credit losses.  Management believes  the  Year
2000  does  represent an area of potential risk  for  credit
losses,  but also believes the risk is manageable.  However,
credit  losses could be realized by the Company due to  Year
2000 problems affecting a borrower's businesses.  The amount
of  such  losses  would be a function of the  value  of  the
collateral associated with the individual credits.   Whether
such  potential losses would require an additional provision
for  credit  losses would be determined in conjunction  with
the  normal  quarterly  analysis  of  the  adequacy  of  the
allowance for credit losses.


Forward-Looking Statements
--------------------------

     Certain statements contained herein, including, without
limitation,  statements  containing  the  words  "believes,"
"intends," "expects" and words of similar import, constitute
"forward-looking  statements"  within  the  meaning  of  the
Private  Securities  Litigation Reform  Act  of  1995.  Such
forward-looking statements involve known and unknown  risks,
uncertainties  and other factors that may cause  the  actual
results,  performance or achievements of the Company  to  be
materially different from any future results, performance or
achievements  expressed or implied by  such  forward-looking
statements.    Such  factors  include,  among  others,   the
following:   general  economics and business  conditions  in
those  areas  in  which  the Company  operates;  demographic
changes;   competition;  fluctuations  in  interest   rates;
changes  in business strategy or development plans;  changes
in   governmental  regulation;  credit  quality;  and  other
factors  referenced  herein, including, without  limitation,
under  the  captions  Provision  for  Credit  Losses,   Non-
Performing  Assets, Allowance for Credit  Losses,  Liquidity
and  Market  Risk,  Interest Rate  Sensitivity,  and  Recent
Developments.   Given  these uncertainties,  the  reader  is
cautioned not to place undue reliance on such foward-looking
statements.  The Company disclaims any obligation to  update
any  such factors or to publicly announce the results of any
revisions to any of the forward-looking statements contained
herein to reflect future events or developments.


Recent Accounting Developments
------------------------------

Disclosure  about  Segments  of an  Enterprise  and  Related
Information

      In  June  1997, the FASB issued Statement of Financial
Accounting Standards No. 131 "Disclosures about Segments  of
an  Enterprise  and  Related Information".   This  statement
establishes   standards   for  the   way   public   business
enterprises  are  to  report  information  about   operating
segments  in annual financial statements and requires  those
enterprises  to report selected information about  operating
segments   in   interim   financial   reports   issued    to
shareholders.   It  also establishes standards  for  related
disclosures  about products and services, geographic  areas,
and   major  customers.   SFAS  131  supersedes   SFAS   14,
"Financial Reporting for Segments of a Business Enterprise",
but  retains  the  requirement to report  information  about
major  customers.   SFAS  131  is  effective  for  financial
statements  for periods beginning after December  15,  1997.
Management and the Board of Directors do not utilize  profit
center  reporting  to  manage the organization.   Therefore,
segment reporting will not be disclosed.


Accounting for Derivative Instruments and Hedging Activities

      Statement  of Financial Accounting Standards  No.  133
"Accounting   for   Derivative   Instruments   and   Hedging
Activities",  ("SFAS No. 133"), establishes  accounting  and
reporting  standards  for derivative instruments,  including
certain  derivative instruments embedded in other contracts,
(collectively  referred to as derivatives) and  for  hedging
activities.   It   requires  that an  entity  recognize  all
derivatives  as either assets or liabilities in the  balance
sheet  and  measure  those instruments at  fair  value.   If
certain conditions are met, a derivative may be specifically
designated  as (a) a hedge of the exposure to changes in the
fair   value  of  a  recognized asset  or  liability  or  an
unrecognized firm commitment, (b) a hedge of the exposure to
variable  cash flows of a forecasted transaction, or  (c)  a
hedge  of  the foreign currency exposure of a net investment
in  a foreign operation, an unrecognized firm commitment, an
available-for-sale    security,   or   a    foreign-currency
denominated   forecasted  transaction.  The  accounting  for
changes  in fair value of a derivative (that is,  gains  and
losses)  depends on the intended use of the  derivative  and
the resulting designation.

      SFAS 133 was originally scheduled to be effective  for
all fiscal quarters of fiscal years beginning after June 15,
1999.   However,   the  FASB  recently  issued   SFAS   137,
"Accounting   for   Derivative   Instruments   and   Hedging
Activities  -  Deferral  of  the  Effective  Date  of   FASB
Statement No.133 " which amended the effective date  of  the
application  of  SFAS  133 to be effective  for  all  fiscal
quarters  of  fiscal years beginning after  June  15,  2000.
Initial  application of SFAS 133 must be as of the beginning
of  an  entity's  fiscal  quarter;  on  that  date,  hedging
relationships   must  be  designated  anew  and   documented
pursuant to the provisions of SFAS 133. SFAS 133 is  not  to
be  applied retroactively to financial statements  of  prior
periods.  Management does not believe that there will  be  a
material adverse impact on the financial position or results
of operations of the Company upon adoption of SFAS 133.

<PAGE>




                 PART II - OTHER INFORMATION


<PAGE>



Item 1. LEGAL PROCEEDINGS
-------------------------

      In  the  normal  course of business,  the  Company  is
subject to pending and threatened legal actions.  Management
believes  that the outcome of such actions will not  have  a
material adverse effect on the Company's financial condition
or results of operations.


Item 2.  CHANGES IN SECURITIES
------------------------------

      There  have been no changes in the securities  of  the
Registrant during the quarter ended June 30, 1999.


Item 3.  DEFAULT UPON SENIOR SECURITIES
---------------------------------------

     This item is not applicable.


Item 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
------------------------------------------------------------

     At the Annual Meeting of Shareholders held on April 22,
     1999,  a  proposal to elect fourteen directors  to  the
     Board  of  Directors of the Registrant to  hold  office
     until  the next meeting and until their successors  are
     elected  and  qualified was approved  by  shareholders.
     This proposal received the following votes:

<TABLE>
<CAPTION>

                                   For            Withheld
                                   ---            --------
     <S>                       <C>                <C>

     Helen Y. Chen              12,138,380         192,653
     Thomas C.T. Chiu           12,138,380         192,653
     Chuang-I Lin               12,138,380         192,653
     Ko-Yen Lin                 12,138,380         192,653
     Ting Yung Liu              12,138,380         192,653
     John Wang                  12,134,380         196,653
     Kenneth Wang               11,983,980         347,053
     Chien-Te Wu                12,138,380         192,653
     Julian Wu                  12,138,380         192,653
     Li-Pei Wu                  12,136,180         194,853
     Peter Wu                   12,138,380         192,653
     Ping C. Wu                 12,138,380         192,653
     Walter Wu                  12,138,380         192,653
     Chin-Liang Yen             12,138,380         192,653

</TABLE>

             There  was also a proposal to approve  the  GBC
Bancorp  1999  Employee Stock Incentive Plan.  The  proposal
received the following votes:

<TABLE>
<CAPTION>

          For            Against             Withheld
          ---            -------             --------
       <C>              <C>                   <C>

       8,217,236        2,594,934             21,854

</TABLE>

Item 5.  OTHER INFORMATION
--------------------------

     There are no events to be reported under this item.


Item 6.  EXHIBITS AND REPORTS ON FORM 8-K
-----------------------------------------

     a)  Exhibits: None.
     b)   Reports on Form 8-K:  None



<PAGE>


                    PART III - SIGNATURES


<PAGE>


SIGNATURES


Pursuant to the requirements of the Securities Exchange  Act
of  1934, the Registrant has duly caused this report  to  be
signed  on  its  behalf  by the undersigned  thereunto  duly
authorized.



                                    GBC Bancorp
                                    (Registrant)

          August 5, 99                   Li-Pei Wu
Dated: __________________        s/ ______________________
                                    Li-Pei Wu, Chairman and
                                    Chief Executive Officer


          August 5, 99                   Peter Lowe
Dated: __________________        s/ ______________________
                                    Peter Lowe, Executive
                                    Vice President and
                                    Chief Financial Officer