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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

[X]   Quarterly Report Pursuant to Section 13 or 15(d) of

For the Quarter ended September 30, 2002 Commission file number 0-10997

WEST COAST BANCORP

Registrant’s telephone number, including area code:   (503) 684-0884

Securities registered pursuant to Section 12(b) of the Act:    None

Securities registered pursuant to Section 12(g) of the Act:
Common Stock, No Par Value
(Title of Class)

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   [   ]

The number of shares of Registrant’s Common Stock outstanding on October 31, 2002, was 15,413,797.

Table of Contents

WEST COAST BANCORP
FORM 10-Q
TABLE OF CONTENTS

					Page
PART I				Financial Information
		Item 1.		Financial Statements (unaudited)
				Consolidated Balance Sheets - September 30, 2002 and December 31, 2001		3
				Consolidated Statements of Income - Three and nine months ended September 30, 2002 and 2001		4
				Consolidated Statements of Cash Flows - Nine months ended September 30, 2002 and 2001		5
				Consolidated Statements of Changes in Stockholders’ Equity - Nine months ended September 30, 2002 and year ended December 31, 2001		6
				Notes to Consolidated Financial Statements		7
		Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations		15
		Item 3.		Quantitative and Qualitative Disclosures About Market Risk		27
		Item 4.		Controls and Procedures		27
PART II				Other Information
		Item 1.		Legal Proceedings		28
		Item 6.		Exhibits and Reports on Form 8-K		28
		Signatures				29
		Certification of Chief Executive Officer				30
		Certification of Chief Financial Officer				31

2

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1.

WEST COAST BANCORP
CONSOLIDATED BALANCE SHEETS
(Unaudited)

					September 30,				December 31,
(Dollars in thousands)					2002				2001
ASSETS:
Cash and cash equivalents:
		Cash and due from banks			$	59,799			$	52,960
		Interest-bearing deposits in other banks				3,917				1
		Federal funds sold				38,342				—
			Total cash and cash equivalents			102,058				52,961
Trading assets						984				1,092
Investment securities available for sale, at fair value (amortized cost: $253,867 and $240,713)						263,159				244,689
Loans held for sale						10,797				14,023
Loans						1,138,154				1,085,050
Allowance for loan losses						(16,276	)			(15,252	)
			Loans, net			1,121,878				1,069,798
Premises and equipment, net						27,442				29,116
Intangible assets						1,306				1,575
Other assets						20,528				22,447
			Total assets		$	1,548,152			$	1,435,701
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
		Demand			$	280,583			$	224,927
		Savings and interest-bearing demand				596,880				569,588
		Certificates of deposit				405,258				376,918
			Total deposits			1,282,721				1,171,433
Short-term borrowings						9,902				26,688
Long-term borrowings						93,000				90,500
Mandatorily redeemable trust preferred securities						12,500				5,000
Other liabilities						17,104				13,290
			Total liabilities			1,415,227				1,306,911
Commitments and contingent liabilities
STOCKHOLDERS’ EQUITY:
Preferred stock: no par value, none issued; 10,000,000 shares authorized						—				—
Common stock: no par value, 55,000,000 shares authorized; 15,481,276 and 16,025,316 shares issued and outstanding, respectively						19,352				20,032
Additional paid-in capital						74,857				82,679
Retained earnings						34,457				24,543
Deferred compensation						(829	)			(878	)
Accumulated other comprehensive income						5,088				2,414
	Total stockholders’ equity					132,925				128,790
			Total liabilities and stockholders’ equity		$	1,548,152			$	1,435,701

See notes to consolidated financial statements.

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WEST COAST BANCORP
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

(Dollars and shares in thousands				Three months ended Sept. 30,								Nine months ended Sept. 30,
except per shares data)				2002				2001				2002				2001
INTEREST INCOME:
Interest and fees on loans				$	21,627			$	21,363			$	62,663			$	65,189
Interest on taxable investment securities					2,286				2,476				6,922				7,618
Interest on nontaxable investment securities					881				956				2,672				2,910
Interest on deposits in other banks					26				95				60				237
Interest on federal funds sold					62				22				83				81
		Total interest income			24,882				24,912				72,400				76,035
INTEREST EXPENSE:
Savings and interest-bearing demand					1,814				3,154				5,544				11,240
Certificates of deposit					3,445				5,054				11,051				16,315
Short-term borrowings					65				291				266				1,859
Long-term borrowings					1,906				1,087				4,754				3,114
Manditorily redeemable trust preferred securities					274				—				502				—
		Total interest expense			7,504				9,586				22,117				32,528
NET INTEREST INCOME					17,378				15,326				50,283				43,507
Provision for loan losses					1,467				920				3,787				2,120
Net interest income after provision for loan losses					15,911				14,406				46,496				41,387
NONINTEREST INCOME:
Service charges on deposit accounts					1,563				1,497				4,675				4,470
Other service charges, commissions and fees					1,300				1,202				3,841				3,492
Trust revenue					394				422				1,301				1,319
Gains on sales of loans					899				863				2,971				2,865
Loan servicing fees					66				107				245				377
Other					42				68				956				247
		Total noninterest income			4,264				4,159				13,989				12,770
NONINTEREST EXPENSE:
Salaries and employee benefits					7,421				6,684				22,136				19,316
Equipment					1,337				1,342				3,834				4,052
Occupancy					1,135				1,084				3,445				3,232
Check and other transaction processing					643				659				1,906				1,919
Professional fees					491				411				1,276				1,353
Courier and postage					501				472				1,463				1,383
Marketing					535				487				1,424				1,262
Communications					297				299				891				938
Other taxes and insurance					189				197				571				631
Printing and office supplies					160				172				521				545
Kiting charge					—				—				—				1,945
Other noninterest expense					474				774				2,767				2,349
		Total noninterest expense			13,183				12,581				40,234				38,925
INCOME BEFORE INCOME TAXES					6,992				5,984				20,251				15,232
PROVISION FOR INCOME TAXES					2,339				1,876				6,831				4,718
NET INCOME				$	4,653			$	4,108			$	13,420			$	10,514
	Basic earnings per share			$	0.30			$	0.25			$	0.86			$	0.65
	Diluted earnings per share			$	0.29			$	0.25			$	0.83			$	0.64
	Weighted average common shares				15,493				16,149				15,663				16,178
	Weighted average diluted shares				16,017				16,549				16,154				16,461

See notes to consolidated financial statements.

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WEST COAST BANCORP
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

					Nine months ended September 30,
(Dollars in thousands)					2002				2001
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income					$	13,420			$	10,514
Adjustments to reconcile net income to cash provided by operating activities:
		Depreciation of premises and equipment				2,486				2,750
		Deferred income tax benefit				(66	)			(304	)
		Write-down of premises and equipment				613				—
		Amortization of intangibles				269				287
		Provision for loan losses				3,787				2,120
		Decrease (increase) in interest receivable				(170	)			577
		Decrease in other assets				2,155				3,025
		Origination of loans held for sale				(45,836	)			(55,118	)
		Proceeds from sales of loans held for sale				49,062				52,988
		Decrease in interest payable				(74	)			(500	)
		Increase (decrease) in other liabilities				3,888				(2,536	)
		Stock based compensation expense				407				405
		Tax benefit associated with stock options				260				162
		Decrease (increase) in trading assets				108				(123	)
			Net cash provided by operating activities			30,309				14,247
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities of available for sale securities						44,120				89,370
Purchase of available for sale securities						(59,915	)			(84,076	)
Loans made to customers greater than principal collected on loans						(55,867	)			(36,206	)
Net capital expenditures						(1,425	)			(3,103	)
			Net cash used in investing activities			(73,087	)			(34,015	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in demand, savings and interest bearing transaction accounts						82,948				72,283
Net increase in certificates of deposit						28,340				5,036
Proceeds from issuance of trust preferred securities						7,500				—
Proceeds from issuance of long-term borrowings						50,000				60,500
Repayment of long-term borrowings						(47,500	)			(35,022	)
Net decrease in short-term borrowings						(16,786	)			(77,386	)
Redemption and repurchase of common stock						(9,971	)			(4,232	)
Net proceeds from issuance of common stock						850				713
Dividends paid and cash paid for fractional shares						(3,506	)			(3,301	)
			Net cash provided by financing activities			91,875				18,591
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS						49,097				(1,177	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD						52,961				60,834
CASH AND CASH EQUIVALENTS AT END OF PERIOD					$	102,058			$	59,657
Supplemental cash flow information: