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WEST COAST BANCORP REPORTS SECOND QUARTER RESULTS AND ANNOUNCES THIRD QUARTER SETTLEMENT RECOVERY OF $2.8 MILLION

 WEST COAST BANCORP REPORTS SECOND QUARTER RESULTS AND ANNOUNCES
 THIRD QUARTER SETTLEMENT RECOVERY OF $2.8 MILLION
 NEWPORT BEACH, Calif., Aug. 5 -- West Coast Bancorp (NASDAQ: WCBC), a California multibank holding company, today reported a net loss for the second quarter ended June 30, 1992, resulting from lower net interest income and an increase in the company's provision for loan losses. For the quarter, West Coast Bancorp reported a loss of $1,446,000, or 16 cents per share, compared with a loss of $350,000, or 4 cents per share, for the second quarter of 1991. The provision for loan losses was $2.2 million versus $1.9 million in the same period of 1991.
 For the six months, the company reported a loss of $1,351,000, or 15 cents per share, compared with net income of $404,000, or 4 cents per share, for the same period in 1991.
 The company also announced that on July 24, 1992, its subsidiary Sunwest Bank recovered $2,765,000, or 30 cents per share before income taxes, in settlement of a long-standing lawsuit against Lloyd's of London. This amount will not be reflected in earnings until the third quarter ending Sept. 30, 1992.
 The lawsuit was filed in 1986 by Sunwest Bank when Lloyd's failed to reimburse a loss claimed by Sunwest under its bankers' fidelity bond for $1.3 million. In November 1990, a jury awarded Sunwest Bank $5.8 million, including punitive damages of $2.5 million, plus interest and legal costs. A year later the trial judge affirmed the judgment, but reduced the award by the amount of the punitive damages. Lloyd's filed an appeal in February 1992 and Sunwest bank negotiated an out of court settlement rather than continue the litigation.
 The operating loss of $1,446,000 for the quarter was primarily the result of lower net interest income from reduced loan volumes, continued high loan losses and the adverse effect of additional costs associated with high levels of nonperforming assets.
 Average loans outstanding declined 10.7 percent and 9.0 percent in the three-month and six-month periods ended June 30, 1992, compared to the same periods in 1991. The decline in loans outstanding contributed to the decrease in net interest income by 9.5 percent and 10.3 percent for the three- and six-month periods.
 Nonperforming loans at 4.35 percent declined slightly from the 4.44 percent figure reported a year ago, but increased from 3.26 percent at March 31, 1992.
 Nonperforming assets increased to 6.28 percent at June 30, 1992, reflecting a higher level of foreclosures. The allowance for possible credit losses increased to 2.45 percent of loans reflecting the continued weak economy and the high level of nonperforming loans.
 The company ended the quarter with total assets of $395 million, loans of $323 million and total deposits of $356 million. At quarter end, West Coast Bancorp's total risk-based capital ratio was 10.14 percent, well above the required minimum level of 7.25 percent.
 West Coast Bancorp operates three subsidiaries: Sunwest Bank and Heritage Thrift & Loan in Orange County; and Sacramento First National Bank in Sacramento County. Established as a bank holding company in 1984, West Coast Bancorp trades on the NASDAQ National Market System under the symbol WCBC.
 -0- 8/5/92
 /CONTACT: Frank E. Smith, CFO of West Coast Bancorp, 714-757-6868; Lise Needham, 415-986-1591, Nick Farina, 312-266-7800, 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


JB-JL -- LA017 -- 7125 08/05/92 13:11 EDT
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Publication:PR Newswire
Date:Aug 5, 1992
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