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WEST COAST BANCORP REPORTS FOURTH QUARTER RESULTS AND RESTRUCTURING

 NEWPORT BEACH, Calif., Feb. 12 /PRNewswire/ -- West Coast Bancorp (NASDAQ-NMS: WCBC), a California multi-bank holding company, today announced a restructuring of the company which resulted in taking charges against income of $4,746,000, or 52 cents per share. These charges included a write-off of $3.2 million in goodwill that was acquired in connection with the company's acquisition of Sunwest Bank and $1.5 million in costs related to its decision to close the operations of Heritage Thrift & Loan. The company also announced that the number of holding company personnel would be significantly reduced in order to reduce costs. As part of the restructuring, John B. Joseph, chairman and chief executive officer, will assume the role of president of West Coast Bancorp.
 The company indicated that it was close to liquidating the operations of its subsidiary, Heritage Thrift & Loan, and expected to close its operations during the first quarter of 1993.
 The net loss for the fourth quarter was $6,870,000, or 75 cents per share, compared with a loss of $1,035,000, or 11 cents per share, for the fourth quarter of 1991. For the year, the company reported a loss of $6,997,000, or 76 cents per share, compared with $1,705,000, or 19 cents per share in 1991. The losses during both years reflect lower net interest income from reduced loan volumes, high-loan losses and the adverse effect of additional costs associated with high levels of nonperforming assets, primarily at the company's southern California subsidiaries. The 1992 losses also included the charge-off of goodwill of $3.2 million and a loss on the liquidation of Heritage Thrift & Loan of $1.5 million.
 Average loans outstanding declined 18 percent and 12 percent for the three and 12 months ended Dec. 31, 1992, compared with the same periods in 1991, and contributed to the 20- and 13-percent decreases in net interest income for the three- and 12-month periods, respectively.
 Nonperforming loans increased from 2.92 percent of loans at year-end 1991, to 3.21 percent at year-end 1992, and the allowance for possible credit losses was increased from 1.96 percent of loans to 2.33 percent, reflecting the continued weak economy and the high level of nonperforming loans.
 Nonperforming assets increased from 4.73 percent of assets at year-end 1991, to 6.77 percent at year-end 1992. Nonperforming assets include $15.5 million of real estate owned in 1992, up from $11.4 million in 1991. This increase resulted from a continuing high level of foreclosures in 1992.
 The provision for possible credit losses, collection expenses and the net cost of operation of real estate owned (primarily write-downs) decreased to $8.6 million for the year and $2.9 million for the fourth quarter in 1992 from $10.9 million and $3.7 million for the same periods in 1991.
 The company adopted FAS 109, Accounting for Income Taxes, retroactively to 1989. Retroactive adoption resulted in a cumulative decrease in retained earnings of $1.1 million as of Jan. 1, 1992. Restatement of the 1991 operating results lowered the net loss in that year by $716,000.
 The company continues to have capital in excess of the regulatory minimums. The total risk-based capital ratio was 9.8 percent above the regulatory minimum level of 8 percent.
 Established as a bank holding company in 1984, West Coast Bancorp trades on the NASDAQ National Market System under the symbol WCBC.
 -0- 2/12/93
 /CONTACT: Frank E. Smith, senior vice president and chief financial officer of West Coast Bancorp, 714-757-6868; or Nick Farina, 312-266-7800, or Lise Needham, 415-986-1591, or Regina Ryan, 212-661-8030, all of Financial Relations Board, for West Coast Bancorp/
 (WCBC)


CO: West Coast Bancorp ST: California IN: FIN SU: ERN

GT-SG -- SF002 -- 6046 02/12/93 09:02 EST
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Publication:PR Newswire
Date:Feb 12, 1993
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