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WEST COAST BANCORP REPORTS THIRD QUARTER EARNINGS

 WEST COAST BANCORP REPORTS THIRD QUARTER EARNINGS
 NEWPORT BEACH, Calif., Nov. 3 /PRNewswire/ -- West Coast Bancorp


(NASDAQ: WCBC), a California multi-bank holding company, today reported earnings for the third quarter ended Sept. 30, 1992, of $1,224,000, or 13 cents per share, compared with a loss of $1,087,000, or 12 cents per share, for the third quarter of 1991.
 For the nine months, the company reported a loss of $127,000, or 1 cent per share, compared with a net loss of $683,000, or 7 cents per share, for the same period in 1991.
 On July 24, 1992, the company's 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. The settlement decreased the provision for loan losses by $1,200,000 as a portion of the settlement was treated as a recovery of a loan loss; the remaining $1,555,000 was recorded as noninterest income.
 The operating results for these periods reflect 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, primarily at the company's southern California subsidiaries.
 Operating expenses decreased from 1991 to 1992 primarily because of lower professional services. The resolution of the Lloyd's case and other litigation associated with the acquisition of Sunwest resulted in legal fees and costs being lowered by $300,000 from the first nine months of 1991 to the same period in 1992. During the second quarter of 1992, resolution of a fee dispute with Laventhol Horwath in connection with litigation consulting services reduced previously recorded expenses of $325,000.
 These decreases in operating expenses were partially offset by increases in the net cost of operation of real estate owned and collection expenses due to the troubled economy. These combined expenses increased by $215,000 from the third quarter of 1991 to the third quarter of 1992 and by $360,000 from the first nine months of 1991 to the first nine months of 1992.
 Average loans outstanding declined 11.7 percent and 9.9 percent in the three and nine month periods ended Sept. 30, 1992, compared to the same periods in 1991. The decline in loans outstanding contributed to the 10.1-percent and 10.8-percent decreases in net interest income for the three and nine month periods.
 Nonperforming loans at 5.24 percent exceeded the 3.37-percent figure reported a year ago. Nonperforming assets increased to 6.66 percent at Sept. 30, 1992, reflecting a higher level of foreclosures. The allowance for possible credit losses increased to 2.54 percent of loans, reflecting the continued weak economy and the high level of nonperforming loans.
 The company ended the quarter with total assets of $407 million, loans of $309 million, and total deposits of $357 million. At quarter end, West Coast Bancorp's total risk-based capital ratio was 11.77 percent, well above the required minimum level of 7.25 percent.
 The company also disclosed it entered into a memorandum of understanding with the Federal Reserve Bank in September to improve the overall financial condition of the company and to correct certain criticisms noted during the Federal Reserve Bank's examination of Sept. 30, 1991. Under the memorandum, the company may not pay cash dividends without prior approval from the Federal Reserve Bank.
 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- 11/3/92
 /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; Sunwest Bank ST: California IN: FIN SU: ERN


ML-GT -- SF004 -- 2080 11/03/92 12:54 EST
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Date:Nov 3, 1992
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