West Coast Bancorp is a Northwest bank holding company with $2.6 billion in assets, operating 65 offices in Oregon and Washington. The company combines the sophisticated products and expertise of larger banks with the local decision making, market knowledge and customer service of a community bank. For more information, visit the Company web site at www.wcb.com.

SOURCE West Coast Bancorp

http://www.wcb.com

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Expected next investor conference call information:
Conference Call Date: 10/26/2009
Conference Call Time (ET): 2:00 PM
Conference Call URL: http://www1.snl.com/irweblinkx/corporateprofile.aspx?iid=100183

The new, unaffiliated investors have been issued shares of Series A Mandatorily Convertible Participating Preferred Stock ("Series A Preferred Stock") and Series B Convertible Participating Preferred Stock ("Series B Preferred Stock"). The unaffiliated investors include, among others, MFP Partners, L.P., a family investment partnership managed by Michael F. Price; Castle Creek Capital; and GF Financial, LLC. The Series A Preferred Stock will mandatorily convert into common stock upon receipt of necessary shareholder approval. The Series B Mandatorily Convertible Preferred Stock will convert into common stock only following receipt of necessary shareholder approval and after being sold to unaffiliated third parties in a widely dispersed offering by its initial owner. The Company has agreed with the investors to promptly seek shareholder approval for the transactions, which is required, both to increase the authorized shares of common stock available for issuance, and under applicable NASDAQ listing rules. The Company intends to file a proxy statement with respect to these shareholder approvals as soon as practicable.

As part of the transactions two of the investors are entitled to representation on the Board of Directors of West Coast Bancorp and West Coast Bank and two other investors are entitled to have board observers. In the event the investors exercise their rights and subject to receipt of necessary regulatory approvals, the Board expects to appoint the board representatives in the near future and will announce these appointments when made. In addition, the terms of the investments permit the Board of Directors of West Coast Bancorp, in its sole discretion, to conduct a rights offering of up to $10 million in the near future in which the new investors would not participate.

The following table illustrates the pro forma impact of the capital investment on the risk-based capital ratios of West Coast Bancorp and West Coast Bank at September 30, 2009.

                                   September 30, 2009
                                                 Pro forma
                                         Prior to           Post
                                       Conversion of    conversion of
                                         preferred        preferred
                                         stock to         stock to
                                          common           common
                              Actual    stock (1,2)       stock (2)

    West Coast Bank
    Tier 1 capital ratio       9.49%       15.75%          15.75%
    Total capital ratio       10.75%       17.01%          17.01%
    Leverage ratio             7.64%       12.08%          12.08%

    West Coast Bancorp
    Tier 1 capital ratio       9.79%        9.79%          16.28%
    Total capital ratio       11.05%       11.05%          17.54%
    Leverage ratio             7.88%        7.88%          12.45%

    (1)  Assumes $134.2 million capital contribution to the Bank and Series A
         and Series B preferred stock is not counted as capital at West Coast
         Bancorp prior to conversion of preferred stock to common stock.
    (2)  Direct costs of private placement are based on best estimates.

Terms of the West Coast Bancorp Private Placements include:

    --  West Coast Bancorp issued 1.43 million shares of Series A Preferred
        Stock, mandatorily convertible into an aggregate of 71.4 million shares
        of WCB common stock at a 50x conversion rate and effective conversion
        price per share of common stock of $2.00 upon obtaining the necessary
        shareholder approval. In addition, West Coast Bancorp issued 0.12
        million shares of Series B Preferred Stock, convertible into an
        aggregate of 6.1 million shares of common stock at a 50x conversion rate
        and an effective conversion price per share of common stock of $2.00
        upon obtaining the necessary shareholder approval and only after being
        sold in a widely dispersed offering to unaffiliated third-parties.
    --  The holders of the Preferred Stock will initially receive the dividends
        and other distributions, if any, as declared and paid by West Coast
        Bancorp to all holders of common stock; if shareholder approval is not
        obtained before March 1, 2010, the holders of the Preferred Stock will
        be entitled to receive cumulative cash dividends at an annual rate of
        15%.  After shareholder approval, holders of the Series B Preferred
        Stock will only be entitled to receive dividends and other distributions
        as declared and paid by West Coast Bancorp to all holders of common
        stock.
    --  As part of the transactions, certain investors received seven-year Class
        C Warrants exercisable for shares of Series B Preferred Stock
        mandatorily convertible into an aggregate of 12 million shares of WCB
        common stock, at an effective conversion price per share of common stock
        of $2.00 with conversion occurring after receipt of shareholder approval
        but only if sold to unaffiliated third parties in a widely dispersed
        offering.
    --  Also, as part of the transactions, all investors received seven-year
        warrants that will only become exercisable if shareholder approval is
        not obtained before March 1, 2010 with an exercise price of $0.50 per
        share of underlying common stock. For investors who acquired Series A
        Preferred Stock that represents 9.9% of WCB's common stock on an
        as-converted basis ("9.9% Investors") and bank holding company
        investors, these warrants ("Class D Warrants") will be exercisable for
        shares of Series B Preferred Stock that would be convertible into an
        aggregate of 6.1 million shares of WCB common. For other investors, the
        warrants ("Class B Warrants") will be exercisable for shares of Series A
        Preferred Stock or Series B Preferred Stock that would be convertible
        into 5.9 million shares of WCB common stock.

    --  No investor will own, control or hold with the power to vote more than
        9.9% of WCB's voting securities, on an as-converted/as-exercised basis
        for bank regulatory purposes.

Additional details on the terms of the private placements will be described further in a forthcoming filing on Form 8-K with the Securities and Exchange Commission, which may be accessed through www.sec.gov. Neither the Federal Reserve System nor any other banking regulator has approved these securities or determined that they constitute Tier 1 capital or regulatory capital for West Coast Bancorp at the parent company level.

West Coast Bank Announces Formal Regulatory Agreement:

West Coast Bank today also announced that it had entered into an agreement with the Federal Deposit Insurance Corporation ("FDIC") and the Oregon Division of Finance and Corporate Securities, its primary banking regulators. The agreement, termed a cease-and-desist order (the "Order"), requires that West Coast Bank, among other things, increase capital, maintain liquidity measurements, reduce problem assets, and strengthen certain operating procedures and policies. Among other requirements, West Coast Bank is required to maintain a Tier 1 capital to total assets leverage ratio at least equal to or greater than 10%, a ratio of qualifying total capital to risk-weighted assets at least equal to or greater than 12%. With the completed capital raise, West Coast Bank's pro forma capital ratios significantly exceed the requirements of the Order with respect to Tier 1 and total risk-based capital on September 30, 2009. Other actions already completed include meeting the liquidity ratios indicated in the Order, addressing certain operational matters referenced in the Order and ensuring future compliance.

"The Board of Directors and Management have already adopted and implemented an aggressive plan to address the items identified in the regulatory agreement. With the capital investment, West Coast Bank has positioned itself for a solid, long-term future that is consistent with the strategic business plan and our commitment to the communities we serve," said Lloyd Ankeny, Chairman of the Board.

Sznewajs added, "The Bank will continue to focus on its well-defined client value proposition and is confident in our existing strategic plan. As a community partner, we will continue to work together to serve our local economy. We will continue our 84-year heritage of exceptional customer service. Our new investors are committed to our existing strategic plan and the management team."

The additional capital greatly enhances the safety and soundness of West Coast Bank, and, in addition, all West Coast Bank deposit accounts continue to be fully-insured to the highest limits permitted by the FDIC. West Coast Bank participates in the FDIC's Transaction Account Guarantee Program which provides unlimited coverage of low-interest bearing NOW accounts and non-interest bearing checking accounts. It also provides the expanded $250,000 FDIC coverage for interest-bearing deposit accounts.

West Coast Bancorp Announces Financial Results for the Third Quarter 2009:

In addition, West Coast Bancorp today announced financial third quarter 2009 financial results, including the following:

    --  A third quarter 2009 net loss of $12.4 million, after tax.
    --  A provision for credit losses of $20.3 million and net charge-offs of
        $18.8 million. As a result, the ratio of allowance for credit losses to
        total loans was 2.20% at September 30, 2009, as compared to 2.01% at
        June 30, 2009. The Company expects the provision and net charge-offs to
        remain elevated for the remainder of the year.
    --  Total nonperforming assets of $208.6 million at September 30, 2009,
        essentially unchanged from $210.6 million at June 30, 2009.
    --  September 30, 2009 total loan and deposit balances of $1.8 billion and
        $2.2 billion, respectively.
    --  The net interest margin declined to 3.14% in the most recent quarter,
        primarily due to the liquidity position invested in short-term, low
        yielding investments.
    --  At September 30, 2009, the Company had approximately $19 million in net
        deferred tax assets. The Company may be required to establish a
        valuation allowance against its net deferred tax assets in future
        reporting periods. Such valuation allowance would result in a charge to
        tax expense and consequently reduce the Company's regulatory capital
        ratios.

    --  For additional financial information, please see the financial tables
        later in this release.

Tax Benefit Preservation Plan

Effective after the completion of the private placements, West Coast Bancorp adopted a tax benefit preservation plan designed to preserve its substantial tax assets. The plan is similar to tax benefit preservation plans adopted by many other public companies with significant tax attributes. The Company's ability to use the tax attributes would be substantially limited if there were an "ownership change" as defined under Section 382 of the Internal Revenue Code and related Treasury Regulations. In general, an ownership change would occur if "5-percent shareholders" as defined under Section 382, collectively increase their ownership in West Coast Bancorp by more than fifty percentage points over a rolling three-year period. The tax benefit preservation plan is designed to reduce the likelihood that the Company experiences such an ownership change by discouraging any person or group from becoming a 5-percent shareholder and dissuading existing 5-percent shareholders from acquiring additional stock without prior approval of West Coast Bancorp's Board of Directors; such persons would experience significant dilution in their ownership interests. As part of implementing the plan, the Company declared a dividend to be distributed to shareholders of records as of November 2, 2009, of one preferred share purchase right for each outstanding share of common stock and fifty such rights for each outstanding share of Preferred Stock. These rights would only be activated (causing the dilution referred to above) if triggered under the plan. Additional details on the terms of the tax benefit preservation plan will be described further in the forthcoming filing on Form 8-K described above.

Capital Raise Advisors

Sandler O'Neill & Partners, L.P. served as financial advisor and Wachtell, Lipton, Rosen & Katz acted as legal advisor to the Company in connection with the transactions. Sullivan & Cromwell LLP acted as legal advisor to GF Financial, LLC.

Other

The Company will hold a Webcast conference call, October 26, 2009, at 11:00 a.m. Pacific Time, during which the Company will discuss the private placements, the regulatory agreement and third quarter 2009 results. To access the conference call via a live Webcast, go to www.wcb.com and click on Investor Relations and the "3rd Quarter 2009 Earnings Conference Call" tab. The conference call may also be accessed by dialing (866) 395-2683, ID#:27709026 a few minutes prior to 11:00 a.m. PDT. The conference call will not be archived or available for replay.

About the Company

West Coast Bancorp (NASDAQ: WCBO) is a Northwest bank holding company for West Coast Bank. With $2.7 billion in assets, West Coast Bank operates through 65 locations in Oregon and Washington. West Coast Bank combines the sophisticated products and expertise of larger banks with the local decision making, market knowledge and customer service of a community bank. For more information, visit the Company's web site at www.wcb.com.

Forward Looking Statements:

Statements in this release regarding future events, performance or results are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA") and are made pursuant to the safe harbors of the PSLRA. Actual results could be quite different from those expressed or implied by the forward-looking statements. Do not unduly rely on forward-looking statements. They give our expectations about the future and are not guarantees. Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update them to reflect changes that occur after that date.

A number of factors could cause results to differ significantly from our expectations, including, among others, factors identified in our Annual Report on Form 10-K for the year ended December 31, 2008, and Quarterly Report on Form 10-Q for the quarter ended June 30, 2009, including under the headings "Forward Looking Statement Disclosure" and "Risk Factors."

Additional Information

In connection with certain matters related to the private placements, West Coast Bancorp intends to file with the Securities and Exchange Commission (the "SEC") a proxy statement. The Company will mail the definitive proxy statement, when available, to its shareholders. Investors and security holders are urged to read the proxy statement with regard to certain matters related to the private placements when it becomes available because it will contain important information. You may obtain a free copy of the proxy statement (when available) and other related documents filed by West Coast Bancorp with the SEC at the SEC's website at www.sec.gov or from West Coast Bancorp's website at www.wcb.com.

The Series A Preferred Stock, the Series B Preferred Stock and the warrants issued in the private placements, and the common stock issuable pursuant to those securities, have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws, and unless so registered may not be offered or sold in the United States or to U.S. persons except pursuant to an exemption from the registration requirements of the Securities Act and applicable state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of securities of the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any jurisdiction.

West Coast Bancorp and its directors, executive officers and certain other members of management and employees may be soliciting proxies from stockholders in favor of certain matters relating to the private placements. You can find information about West Coast Bancorp's executive officers and directors in the Company's definitive proxy statement filed with the SEC on March 18, 2009. You can obtain a free copy of this document from the Company's website at www.wcb.com. Investors may obtain additional information regarding the interest of such participants by reading the proxy statement regarding the matters related to the private placements when it becomes available.

Financial Tables

The following tables are the consolidated income statements and balance sheets for the periods shown.

                                       West Coast Bancorp
                               Consolidated Statements of Income (Loss)

     (Unaudited)
     (Dollars and shares
      in thousands,
      except per                  Three months ended        Nine months ended
      share data)               September 30,    June 30,     September 30,
                               2009      2008      2009       2009    2008
     Net interest income
       Interest and fees
        on loans            $24,535   $32,013   $26,247    $76,899  $99,912
       Interest on
        investment
        securities            3,063     2,686     2,572      8,113    8,563
       Other interest income    127        73        50        190      354
     Total interest income   27,725    34,772    28,869     85,202  108,829
     Interest expense on
      deposit accounts        6,216     8,310     6,359     19,060   28,987
     Interest on borrowings
      and subordinated
      debentures              2,364     2,739     2,296      6,653    8,829
     Total interest expense   8,580    11,049     8,655     25,713   37,816
       Net interest income   19,145    23,723    20,214     59,489   71,013

     Provision for
      credit losses          20,300     9,125    11,393     54,824   23,850

     Noninterest income
       Service charges on
        deposit accounts      4,038     4,176     4,133     11,976   11,694
       Payment systems
        related revenue       2,501     2,337     2,359      6,997    6,808
       Trust and investment
        services revenues     1,140     1,241       971      3,030    4,360
       Gains on sales
        of loans                466       455       756      1,565    2,084
       OREO valuation
        adjustments and
        loss on sale         (3,998)   (1,422)   (3,683)   (12,485)  (1,685)
       Other                    824       621       787      3,553    2,619
       Other-than-temporary
        impairment losses         -    (6,338)        -       (192)  (6,338)
       Gain  on sales of
        securities                -         -       635        833      777
     Total noninterest
      income                  4,971     1,070     5,958     15,277   20,319
     Noninterest expense
       Salaries and
        employee benefits    10,753    11,017    11,267     33,215   36,017
       Equipment              1,758     1,793     1,850      5,500    5,309
       Occupancy              2,247     2,354     2,295      6,908    7,026
       Payment systems
        related expense       1,043       952       998      2,960    2,687
       Professional fees      1,091     1,334     1,371      3,389    3,082
       Postage, printing
        and office supplies     799       991       826      2,420    2,957
       Marketing                832     1,009       696      2,158    2,810
       Communications           402       437       404      1,199    1,266
       Goodwill impairment        -         -         -     13,059        -
       Other noninterest
        expense               4,564     2,334     5,537     13,299    6,634
     Total noninterest
     expense                 23,489    22,221    25,244     84,107   67,788
     Income (loss) before
     income taxes           (19,673)   (6,553)  (10,465)   (64,165)    (306)
     Provision (benefit)
     for income taxes        (7,265)   (4,237)   (4,126)   (21,819)  (2,674)
     Net income (loss)     $(12,408)  $(2,316)  $(6,339)  $(42,346)  $2,368

     Earnings (loss)
      per share:
         Basic               $(0.79)   $(0.15)   $(0.41)    $(2.71)   $0.15
         Diluted             $(0.79)   $(0.15)   $(0.41)    $(2.71)   $0.15

     Weighted average
      common shares          15,520    15,487    15,522     15,510   15,467
     Weighted average
      diluted shares         15,520    15,487    15,522     15,510   15,571

     Tax equivalent
      net interest
      income                $19,505   $24,154   $20,580    $60,630  $72,343



                                             West Coast Bancorp
                                         Consolidated Balance Sheets

    (Dollars and shares in     September 30,      September 30,      June 30,
     thousands, unaudited)         2009               2008            2009
    Assets:
    Cash and cash equivalents     $251,642           $101,614        $148,282
    Investments                    411,984            205,987         369,914
    Total loans                  1,822,001          2,109,517       1,917,028
    Allowance for loan losses      (39,075)           (33,498)        (37,700)
    Loans, net                   1,782,926          2,076,019       1,879,328
    OREO, net                       76,570             48,121          83,830
    Goodwill and other
     intangibles                       716             14,153             796
    Other assets                   129,519            127,152         131,333
         Total assets           $2,653,357         $2,573,046      $2,613,483

    Liabilities and
     Stockholders' Equity:
    Demand                        $522,629           $486,540        $483,397
    Savings and
     interest-bearing demand       401,256            337,472         396,100
    Money market                   651,198            672,690         606,349
    Time deposits                  580,743            564,717         623,521
    Total deposits               2,155,826          2,061,419       2,109,367
    Borrowings and
     Subordinated debentures       314,299            282,059         314,299
    Reserve for unfunded
     commitments                       961                946             869
    Other liabilities               20,588             24,400          20,282
         Total liabilities       2,491,674          2,368,824       2,444,817
    Stockholders' equity           161,683            204,222         168,666
         Total liabilities and
          stockholders' equity  $2,653,357         $2,573,046      $2,613,483

    Common shares
     outstanding period end         15,647             15,702          15,660
    Book value per common share     $10.33             $13.01          $10.77
    Tangible book value
     per common share               $10.29             $12.10          $10.72



    The following table shows summary financial information for the periods
    shown.

                                        West Coast Bancorp
                                  Summary Financial Information
     (Dollars in
     thousands
     except for
     per share
     data, unaudited)                                       Year       Year
    (all rates have       Third      Third     Second      to date    to date
     been annualized     Quarter    Quarter    Quarter    Sept. 30,  Sept. 30,
     where appropriate)    2009       2008      2009        2009       2008

    PERFORMANCE RATIOS
     - Return on
        average assets     -1.85%     -0.36%     -0.99%     -2.20%      0.12%
     - Return on average
        common equity     -29.39%     -4.47%    -14.61%    -31.55%      1.52%
     - Return on average
        tangible equity   -29.40%     -4.66%    -14.53%    -32.33%      1.78%
     - Non-interest
        income to
        average assets      0.74%      0.17%      0.93%      0.79%      1.05%
     - Non-interest
        expense to
        average assets      3.50%      3.45%      3.94%      4.37%      3.50%
     - Efficiency ratio,
        tax equivalent      96.0%      70.4%      97.5%     112.0%      69.0%

    NET INTEREST MARGIN
     - Yield on average
        interest-earning
        assets              4.53%      5.85%      4.97%      4.88%      6.03%
     - Rate on average
        interest-bearing
        liabilities         1.73%      2.36%      1.83%      1.82%      2.67%
     - Net interest
        spread              2.80%      3.49%      3.14%      3.06%      3.36%
     - Net interest
        margin              3.14%      4.02%      3.50%      3.43%      3.96%

    AVERAGE ASSETS
     - Investment
        securities      $387,830   $228,382   $309,810   $296,140   $238,732

     - Commercial loans  423,258    502,781    452,517    448,964    513,005
     - Real estate
        construction
        loans            170,583    371,687    229,127    221,981    434,950
     - Real estate
        mortgage loans   386,462    383,214    391,993    390,278    364,245
     - Commercial real
        estate loans     865,107    851,849    877,405    874,978    828,841
     - Installment and
        other consumer
        loans             19,641     23,220     20,425     20,361     23,941
     - Total loans     1,865,051  2,132,751  1,971,467  1,956,562  2,164,982

     - Total interest
        earning assets 2,460,793  2,393,207  2,360,328  2,363,608  2,440,704
     - Other assets      201,122    170,466    206,377    208,163    149,321
     - Total assets   $2,661,915 $2,563,673 $2,566,705 $2,571,771 $2,590,025

    AVERAGE LIABILITIES
     & EQUITY
     - Demand deposits  $508,758   $482,780   $478,289   $485,715   $471,552
     - Savings and
        Interest
        bearing
        demand           404,930    348,008    385,636    379,734    354,862
     - Money market      635,511    672,051    599,417    609,830    665,863
     - Time deposits     610,907    543,451    614,472    598,626    560,170
     - Total deposits  2,160,106  2,046,290  2,077,814  2,073,905  2,052,447

     - Borrowings and
        subordinated
        debentures       314,299    300,258    297,951    300,643    308,960

     - Total interest
        bearing
        liabilities    1,965,647  1,863,768  1,897,476  1,888,833  1,889,854
     - Other
        liabilities      528,793    493,545    495,172    503,488    491,699
     - Total
        liabilities    2,494,440  2,357,313  2,392,648  2,392,321  2,381,553
     - Common equity     167,475    206,360    174,057    179,450    208,472
     - Total average
        liabilities
        and common
        equity        $2,661,915 $2,563,673 $2,566,705 $2,571,771 $2,590,025

    AVERAGE ASSET/
     LIABILITY RATIOS
     - Stockholders'
        equity to
        total assets        6.29%      8.05%      6.78%      6.98%      8.05%
     - Interest earning
        assets to
        interest bearing
        liabilities        125.2%     128.4%     124.4%     125.1%     129.1%
     - Total loans to
        total assets        70.1%      83.2%      76.8%      76.1%      83.6%
     - Interest bearing
        deposits to
        total assets        62.0%      61.0%      62.3%      61.8%      61.0%



    The following table reconciles GAAP financial measures to non-GAAP
    financial measures.

    Table 1                            West Coast Bancorp
                Reconciliation of Operating earnings (loss) to GAAP net income

                                  For the three months   For the nine months
    (Dollars in thousands,           ended Sept. 30,       ended Sept. 30,
     unaudited)                      2009      2008        2009       2008

    GAAP net income (loss)         $(12,408)  $(2,316)  $(42,346)    $2,368
      Add: impairment charge
       on securities, net of tax          -     4,120          -      4,120
      Add: FDIC special
       assessment charge,
       net of tax                         -         -        777          -
      Add: Goodwill impairment
       charge, net of tax                 -         -     13,059          -
    Operating net income (loss)    $(12,408)   $1,804   $(28,510)    $6,488

    Diluted earnings (loss)
     per diluted share
    GAAP net income (loss)           $(0.79)   $(0.15)    $(2.71)     $0.15
    Operating net income (loss)      $(0.79)    $0.12     $(1.81)     $0.42



    The following table presents information with respect to the Company's
    loan portfolio.

    Table 2                             West Coast Bancorp
                              Period End Loan Portfolio By Category
    (Dollars
     in
     thousands, Sept. 30, % of  Sept. 30, % of    Change         June 30, % of
     unaudited)   2009   loans    2008   loans    Amount   %      2009   loans

    Commercial
     loans      $406,807  22%   $498,715   24% $ (91,908) -18%   $428,852  22%
      Commercial
       real
       estate
       constr-
       uction     43,944   2%     89,599    4%   (45,655) -51%     71,945   4%
      Residential
       real
       estate
       constr-
       uction    105,921   6%    241,234   11%  (135,313) -56%    129,588   7%
    Total
     real
     estate
     constr-
     uction
     loans       149,865   8%    330,833   16%  (180,968) -55%    201,533  11%
      Mortgage    78,144   4%     90,510    4%   (12,366) -14%     83,941   4%
      Non-
       standard
       mortgage   21,952   1%     32,658    2%   (10,706) -33%     23,916   1%
      Home
       equity    282,552  16%    266,385   13%    16,167    6%    280,366  15%
    Total
     real
     estate
     mortgage    382,648  21%    389,553   18%    (6,905)  -2%    388,223  20%
    Commercial
     real
     estate
     loans       863,658  48%    867,902   41%    (4,244)   0%    878,379  46%
    Installment
     and other
     consumer
     loans        19,023   1%     22,514    1%    (3,491) -16%     20,041   1%
     Total
      loans   $1,822,001      $2,109,517       $(287,516) -14% $1,917,028

    Two-step
     residential
     constr-
     uction
     loans        $5,128   0%  $  97,894    5% $ (92,766) -95%    $10,348   1%
    Total
     loans
     other
     than
     two-step
     loans     1,816,873 100%  2,011,623   95%  (194,750) -10%  1,906,680  99%
      Total
       Loans  $1,822,001 100% $2,109,517  100% $(287,516) -14% $1,917,028 100%



    The following tables present information with respect to the change in the
    Company's total allowance for credit losses.


    Table 3                                West Coast Bancorp
                                          Total Loan Portfolio
                              Allowance For Credit Losses and Net Charge-offs

                                             Quarter    Quarter    Quarter
                                              ended      ended      ended
                                             Sept. 30,  Sept. 30,  June 30,
    (Dollars in thousands, unaudited)          2009       2008      2009

    Allowance for credit losses, beginning
     of period                                $38,569   $37,045    $38,463
      Provision for credit losses loans
       other than two-step loans               19,575     7,128      9,004
      Provision for credit losses
       two-step loans                             725     1,997      2,389
    Total provision for credit losses          20,300     9,125     11,393
    Loan charge-offs:
      Commercial                                5,869       516      1,725
        Commercial real estate construction       324         -          -
        Residential real estate construction    7,797     4,201      4,891
         Two-step residential construction        766     6,490      2,392
      Total real estate construction            8,887    10,691      7,283
        Mortgage                                3,018       481      1,244
        Nonstandard mortgage                      726                  320
        Home equity                               204        99        529
      Total real estate mortgage                3,948       580      2,093
      Commercial real estate                       68        44        172
      Installment and consumer                    146       382        267
      Overdraft                                   287       323        230
      Total loan charge-offs                   19,205    12,536     11,770
    Loan recoveries:
      Commercial                                  125        49        392
        Commercial real estate construction         -         -          -
        Residential real estate construction      (14)      675         14
         Two-step residential construction         41        41          3
      Total real estate construction               27       716         17
        Mortgage                                    -       (13)         -
        Nonstandard mortgage                        1         -          -
        Home equity                                 1        (9)         -
      Total real estate mortgage                    2       (22)         -
      Commercial real estate                      147         -          -
      Installment and consumer                     18        18         16
      Overdraft                                    53        49         58
      Total loan recoveries                       372       810        483
        Net charge-offs                        18,833    11,726     11,287

    Total allowance for credit losses         $40,036   $34,444    $38,569
    Components of allowance for
     credit losses:
      Allowance for loan losses               $39,075   $33,498    $37,700
      Reserve for unfunded commitments            961       946        869
    Total allowance for credit losses         $40,036   $34,444    $38,569

    Net loan charge-offs to average
     loans (annualized)                          4.01%     2.19%      2.30%
    Allowance for loan losses to
     total loans                                 2.14%     1.59%      1.97%
    Allowance for credit losses to
     total loans                                 2.20%     1.63%      2.01%
    Allowance for loan losses to
     nonperforming loans                           30%       25%        30%
    Allowance for credit losses to
     nonperforming loans                           30%       25%        30%



    Table 4                                    West Coast Bancorp
                                              Total Loan Portfolio
                                       Allowance For Credit Losses and Net
                                                   Charge-offs

                                         Year to date            Year to date
    (Dollars in thousands,              September 30,            September 30,
     unaudited)                              2009                    2008
    Allowance for credit losses,
     beginning of period                    $29,934                 $54,903
      Provision for credit losses
       loans other than two-step loans      $48,607                 $19,126
      Provision for credit losses
       two-step loans                         6,217                   4,724
    Total provision for credit losses        54,824                  23,850
    Loan charge-offs:
      Commercial                              8,869                   3,256
        Commercial real estate
         construction                           324                       -
        Residential real estate
         construction                        17,789                   4,806
        Two-step residential
         construction                         6,833                  36,307
      Total real estate
       construction                          24,946                  41,113
        Mortgage                              5,280                     713
        Nonstandard mortgage                  2,975                       -
        Home equity                           2,014                     127
      Total real estate mortgage             10,269                     840
      Commercial real estate                    646                      44
      Installment and consumer                  545                     502
      Overdraft                                 766                     927
      Total loan charge-offs                 46,041                  46,682
    Loan recoveries:
      Commercial                                734                      81
        Commercial real estate
         construction                             -                       -
        Residential real estate
         construction                             -                       -
        Two-step residential
         construction                           195                   2,020
      Total real estate
       construction                             195                   2,020
        Mortgage                                  3                       -
        Nonstandard mortgage                      1                       -
        Home equity                               1                      30
                                                  -                      --
      Total real estate mortgage                  5                      30
      Commercial real estate                    147                       -
      Installment and consumer                   56                      63
      Overdraft                                 182                     179
      Total loan recoveries                   1,319                   2,373
        Net charge-offs                      44,722                  44,309

    Total allowance for credit losses       $40,036                 $34,444
    Components of allowance for
     credit losses:
      Allowance for loan losses             $39,075                 $33,498
      Reserve for unfunded commitments          961                     946
    Total allowance for credit losses       $40,036                 $34,444

    Net loan charge-offs to
     average loans                             3.06%                   2.73%



    The following tables present information about the Company's total
    nonperforming assets and delinquent loans.

    Table 5                                West Coast Bancorp
                                          Total Loan Portfolio
                                 Nonperforming Assets and Delinquencies

    (Dollars in
     thousands,           September 30,      September 30,         June 30,
     unaudited)               2009              2008                2009
    Loans on nonaccrual
     status:
    Commercial               $49,871            $6,651             $34,396
    Real estate
     construction:
      Commercial
       real estate
       construction            2,449                 -               2,922
      Residential
       real estate
       construction           42,277           104,014              56,507
    Total
     real estate
     construction             44,726           104,014              59,429
    Real estate
     mortgage:
      Mortgage                12,498             6,384              14,179
      Nonstandard mortgage    10,810            11,834              10,486
      Home equity              1,599               644               1,259
    Total
     real estate
     mortgage                 24,907            18,862              25,924
    Commercial real estate    12,463             5,636               6,905
    Installment and consumer      39                14                  69
    Total
     nonaccrual loans        132,006           135,177             126,723
    90 days past due not
     on nonaccrual                 -                 -                   -
      Total non-performing
       loans                 132,006           135,177             126,723

    Other real
     estate owned             76,570            48,121              83,830
    Total
     non-performing
     assets                 $208,576          $183,298            $210,553

    Non-performing
     loans to total loans       7.25%             6.41%               6.61%
    Non-performing
     assets to total assets     7.86%             7.12%               8.06%

                                          Total Loan Portfolio
                             Delinquent loans 30-89 days past due as a % of
                                              loan category

     (Dollars in
     thousands,            September 30,      September 30,         June 30,
     unaudited)                 2009              2008                2009

    Commercial loans            0.16%             0.06%               0.42%
    Real estate
     construction loans         5.68%             3.69%               2.93%
    Real estate
     mortgage loans             0.71%             0.53%               1.84%
    Commercial real
     estate loans               0.14%             0.04%               0.13%
    Installment and
     other consumer loans       0.09%             0.49%               0.50%

    Delinquent loans 30-89
     days past due:
    Two-step
     residential
     construction loans           $-            $4,089                  $-
    Total loans Other
     than two-step loans      13,136            10,919              16,082
     Total delinquent
      loans 30-89 days past
      due, not in
      nonaccrual status      $13,136           $15,008             $16,082

    Delinquent
     loans to total loans       0.72%             0.71%               0.84%



    The following table presents information about the Company's activity in
    other real estate owned.

    Table 6                               West Coast Bancorp
                              Other real estate owned ("OREO") activity

                               Three months           Three months
     (Dollars in                   ended       Number     ended       Number
     thousands,                  Sept. 30,       of      Sept. 30,      of
     unaudited)                    2009      properties    2008     properties

    Beginning balance            $83,830        335      $27,892       108
      Additions to OREO(1)        12,064         36       26,965       103
      Valuation adjustments
       to OREO                    (3,797)         -       (1,118)        -
      Disposition of OREO        (15,527)       (70)      (5,618)      (22)
    Ending balance               $76,570        301      $48,121       189

                                              Three months
                                             ended June 30,          Number
    (Dollars in thousands, unaudited)             2009           of properties

    Beginning balance                           $87,189               349
      Additions to OREO(1)                       14,819                48
      Valuation adjustments to OREO             (3,064)                 -
      Disposition of OREO                      (15,114)               (62)
    Ending balance                              $83,830               335


                                OREO activity related to two-step loans

                               Three months           Three months
     (Dollars in                   ended       Number     ended       Number
     thousands,                  Sept. 30,       of      Sept. 30,      of
     unaudited)                    2009      properties    2008     properties

    Beginning balance            $69,632        278      $26,460       101
      Additions to OREO(1)         2,999          9       24,200        91
      Valuation adjustments
       to OREO                    (3,347)                 (1,118)
      Disposition of OREO        (12,728)       (54)      (4,867)      (19)
    Ending balance               $56,556        233      $44,675       173

                                              Three months
                                             ended June 30,          Number
    (Dollars in thousands, unaudited)             2009           of properties

    Beginning balance                           $73,319               296
      Additions to OREO(1)                       10,902                33
      Valuation adjustments to OREO              (2,320)
      Disposition of OREO                       (12,269)              (51)
    Ending balance                              $69,632               278


                      OREO activity related to loans other than two-step loans

                               Three months           Three months
     (Dollars in                   ended       Number     ended       Number
     thousands,                  Sept. 30,       of      Sept. 30,      of
     unaudited)                    2009      properties    2008     properties

    Beginning balance            $14,198         57       $1,432         7
      Additions to OREO(1)         9,065         27        2,765        12
      Valuation adjustments
       to OREO                      (450)                      -         -
      Disposition of OREO         (2,799)       (16)        (751)       (3)
    Ending balance               $20,014         68       $3,446        16

                                              Three months
                                             ended June 30,          Number
    (Dollars in thousands, unaudited)             2009           of properties

    Beginning balance                           $13,870                53
      Additions to OREO(1)                        3,917                15
      Valuation adjustments to OREO                (744)
      Disposition of OREO                        (2,845)              (11)
    Ending balance                              $14,198                57

    (1) Includes capitalized cost of OREO.



    The following table presents information with respect to two-step
    residential construction related OREO activity and two-step short sales.

    Table 7

                                                           Total two-step OREO
                        Two-step related OREO   Two-step      property sales
                              activity         short sales   and short sales
    (Dollars in thousands) Amount  Number    Amount   Number  Amount  Number

    Full year 2008:
    Beginning balance
     January 1, 2008       $3,255     14
      Additions to OREO    75,863    294
      Capitalized
       improvements         1,319
      Valuation
       adjustments         (4,286)
      Disposition of
       OREO properties
       and short sales    (16,129)   (57)   $(11,448)  (40)  $(27,577)  (97)
    Ending balance
     December 31, 2008    $60,022    251

    Quarterly 2009:
    Beginning balance
     January 1, 2009      $60,022    251
      Additions to OREO    20,635     62
      Capitalized
       improvements           668
      Valuation
       adjustments         (4,110)
      Disposition of
       OREO properties
       and short sales     (3,896)   (17)    $(2,502)   (7)   $(6,398)  (24)
    Ending balance
     March 31, 2009       $73,319    296

      Additions to OREO     9,822     33
      Capitalized
       improvements         1,080
      Valuation
       adjustments         (2,320)
      Disposition of
       OREO properties
       and short sales    (12,269)   (51)    $(1,177)   (3)  $(13,446)  (54)
    Ending balance
     June 30, 2009        $69,632    278

      Additions to OREO     2,130      9
      Capitalized
       improvements           869
      Valuation
       adjustments         (3,347)
      Disposition of
       OREO properties
       and short sales    (12,728)   (54)     $ (644)   (3)  $(13,372)  (57)
    Ending balance
     Sept. 30, 2009       $56,556    233

    Full year 2009:
    Beginning balance
     January 1, 2009      $60,022    251
      Additions to OREO    32,587    104
      Capitalized
       improvements         2,617
      Valuation
       adjustments         (9,777)
      Disposition of
       OREO properties
       and short sales    (28,893)  (122)    $(4,323)  (13)  $(33,216) (135)
    Ending balance
     Sept. 30, 2009       $56,556    233



    The following table presents information with respect to non two-step
    related OREO activity and non two-step short sales.

    Table 8
                                                               Total non
                                                              two-step OREO
                        Non two-step related   Non two-step  property sales
                            OREO activity      short sales   and short sales
    (Dollars in thousands) Amount  Number    Amount   Number  Amount  Number

    Full year 2008:
    Beginning balance
     January 1, 2008           $-     1
      Additions to OREO    11,936    42
      Capitalized
       improvements            10
      Valuation
       adjustments           (499)
      Disposition of
       OREO properties
       and short sales     (1,359)   (6)          $-     -   $(1,359)   (6)
    Ending balance
     December 31, 2008    $10,088    37

    Quarterly 2009:
    Beginning balance
     January 1, 2009      $10,088    37
      Additions to OREO     4,614    17
      Capitalized
       improvements            14
      Valuation
       adjustments           (651)
      Disposition of
       OREO properties
       and short sales       (195)   (1)       $(948)   (4)  $(1,143)   (5)
    Ending balance
     March 31, 2009       $13,870    53

      Additions to OREO     3,841    15
      Capitalized
       improvements            76
      Valuation
       adjustments           (744)
      Disposition of
       OREO properties
       and short sales     (2,845)  (11)       $(509)   (2)  $(3,354)  (13)
    Ending balance
     June 30, 2009        $14,198    57

      Additions to OREO     8,979    27
      Capitalized
       improvements            86
      Valuation
       adjustments           (450)
      Disposition of
       OREO properties
       and short sales     (2,799)  (16)     $(2,616)  (11)  $(5,415)  (27)
    Ending balance
     Sept. 30, 2009       $20,014    68

    Full year 2009:
    Beginning balance
     January 1, 2009      $10,088    37
      Additions to OREO    17,434    59
      Capitalized
       improvements           176
      Valuation
       adjustments         (1,845)
      Disposition of
       OREO properties
       and short sales     (5,839)  (28)     $(4,073)  (17)  $(9,912)  (45)
    Ending balance
     Sept. 30, 2009       $20,014    68



    The following table presents information with respect to the change in the
    Company's allowance for credit losses in the two-step residential
    construction loan portfolio.

    Table 9                                    West Coast Bancorp
                                            Two-Step Loan Portfolio
                                        Allowance For Credit Losses and
                                       Net Charge-offs Two-Step Portfolio

                                   Quarter ended  Quarter ended  Quarter ended
     (Dollars in thousands,         September 30,  September 30,    June 30,
     unaudited)                         2009           2008          2009
    Allowance for credit losses,
     beginning of period                  $-         $5,280            $-
      Provision for credit losses        725          1,997         2,389
      Charge-offs                        766          6,490         2,392
      Recoveries                          41            715             3
        Net charge-offs                  725          5,775         2,389

    Total allowance for credit losses     $-         $1,502            $-

    Components of allowance
     for credit losses
      Allowance for loan losses           $-         $1,472            $-
      Reserve for unfunded commitments     -             30             -
    Total allowance for credit losses     $-         $1,502            $-


                                    Year to date   Year to date
     (Dollars in thousands,         September 30,  September 30,
     unaudited)                         2009           2008
    Allowance for credit losses,
     beginning of period                $421        $31,065
      Provision for credit losses      6,217          4,724
      Charge-offs                      6,833         36,307
      Recoveries                         195          2,020
        Net Charge-offs                6,638         34,287

    Total allowance for credit losses     $-         $1,502

    Components of allowance
     for credit losses
      Allowance for loan losses           $-         $1,472
      Reserve for unfunded commitments     -             30
    Total allowance for credit losses     $-         $1,502

    Net loan charge-offs to
     average total loans                0.45%          2.12%



    The following table presents information about the Company's nonperforming
    assets and delinquencies in the two-step residential construction loan
    portfolio.

    Table 10                                 West Coast Bancorp
                                  Two-Step Residential Construction Loans
                                    Nonperforming Assets and Delinquencies

    (Dollars in thousands,       September 30,   September 30,     June 30,
     unaudited)                      2009            2008            2009

    Nonaccrual two-step loans       $5,128         $82,990         $10,348
    90 day past due and
     accruing interest                   -               -               -
      Total nonperforming
       two-step loans                5,128          82,990          10,348

    Other real estate owned
     two-step                       56,556          44,675          69,632
    Total nonperforming
     two-step assets               $61,684        $127,665         $79,980

    Delinquent two-step loans
     30-89 days past due, not in
     nonaccrual status                  $-          $4,089              $-

    Nonperforming two-step
     assets to total assets           2.32%           4.96%           3.06%
    Delinquent two-step loans
     to total two-step loans          0.00%           4.18%           0.00%



    The following table shows the components of our construction and land
    loans outside the two-step portfolio as of the dates shown:

    Table 11                           West Coast Bancorp
                   Construction and land loans outside the two-step portfolio

    (Dollars in
     thousands,
     unaudited)     September 30, 2009  September 30, 2008    June 30, 2009
                    Amount  Percent(2)  Amount  Percent(2)  Amount  Percent(2)
    Land loans(1)   $35,645    20%      $44,805    16%      $37,503    16%
    Residential
     construction
     loans other
     than two-step
     loans          100,829    56%      144,517    52%      119,274    52%
    Commercial
     construction
     loans           43,991    24%       88,630    32%       72,045    32%
      Total
       construction
       and land
       loans other
       than
       two-step
       loans       $180,465   100%     $277,952   100%     $228,822   100%

    Components
     of residential
     construction
     and land loans
     other than
     two-step
     loans:
    Land loans(1)   $14,783    13%      $24,038    14%      $17,910    13%
    Site
     development     45,566    39%       71,125    42%       56,997    42%
    Vertical
     construction    55,263    48%       73,392    44%       62,276    45%
      Total
       residential
       construction
       and land
       loans other
       than
       two-step
       loans       $115,612   100%     $168,555   100%     $137,183   100%

    Components
     of commercial
     construction
     and land loans:
    Land loans(1)   $20,862    32%      $20,767    19%      $19,593    21%
    Site
     development        607     1%           77     0%          607     1%
    Vertical
     construction    43,384    67%       88,553    81%       71,439    78%
      Total
       commercial
       construction
       and land
       loans        $64,853   100%     $109,397   100%      $91,639   100%

    Components
     of total
     construction
     and land
     loans other
     than two-step
     loans:
    Land loans(1)   $35,645    20%      $44,805    16%      $37,503    17%
    Site
     development     46,173    26%       71,202    26%       57,604    25%
    Vertical
     construction    98,647    55%      161,945    58%      133,715    58%
      Total
       construction
       and land
       loans other
       than
       two-step
       loans       $180,465   100%     $277,952   100%     $228,822   100%

    (1) Land loans represent balances that are carried in the Company's
        residential real estate mortgage and commercial real estate loan
        portfolios.
    (2) Calculations have been based on more detailed information and
        therefore may not recompute exactly due to rounding.



    The following table shows the components of our nonaccrual construction
    and land loans outside the two-step portfolio as of the dates shown.

    Table 12                           West Coast Bancorp
                                Nonaccrual construction and land loans
                                   outside the two-step portfolio

                   September 30, 2009  September 30, 2008   June 30, 2009
    (Dollars                Percent             Percent             Percent
     in thousands,          of loan             of loan             of loan
     unaudited)    Amount  category(2) Amount  category(2) Amount  category(2)

    Land loans(1)  $9,232    25.90%    $5,308     1.91%    $8,625     23.00%
    Residential
     construction
     loans other
     than
     two-step
     loans         37,149    36.84%    21,025     7.56%    46,159     38.70%
    Commercial
     construction
     loans          2,449     5.57%         -     0.00%     2,922      4.06%
      Total
       nonaccrual
       construction
       and land
       loans other
       than
       two-step
       loans      $48,830    27.06%   $26,333     9.47%   $57,706     25.22%

    Components of
     nonaccrual
     residential
     construction
     and land loans
     other than
     two-step
     loans:
    Land loans(1)  $8,236    55.71%    $5,308     3.15%    $7,629     42.60%
    Site
     development   26,785    58.78%    13,731     8.15%    33,721     59.16%
    Vertical
     construction  10,364    18.75%     7,294     4.33%    12,438     19.97%
      Total
       nonaccrual
       residential
       construction
       and land
       loans other
       than
       two-step
       loans      $45,385    39.26%   $26,333    15.63%   $53,788     39.21%

    Components
     of nonaccrual
     commercial
     construction
     and land
     loans:
    Land loans(1)     996     4.77%         -     0.00%       996      5.08%
    Site
     development        -     0.00%         -     0.00%         -      0.00%
    Vertical
     construction   2,449     5.64%         -     0.00%     2,922      4.09%
      Total
       nonaccrual
       commercial
       construction
       and land
       loans other
       than
       two-step
       loans       $3,445     5.31%        $-     0.00%    $3,918      4.28%

    Components
     of total
     nonaccrual
     construction
     and land
     loans other
     than two-step
     loans:
    Land loans(1)  $9,232    25.90%    $5,308     1.91%    $8,625     23.00%
    Site
     development   26,785    58.01%    13,731     4.94%    33,721     58.54%
    Vertical
     construction  12,813    12.99%     7,294     2.62%    15,360     11.49%
      Total
       nonaccrual
       construction
       and land
       loans other
       than
       two-step
       loans      $48,830    27.06%   $26,333     9.47%   $57,706     25.22%

    (1) Land loans represent balances that are carried in the Company's
        residential real estate mortgage and commercial real estate loan
        portfolios.
    (2) Calculations have been based on more detailed information and
        therefore may not recompute exactly due to rounding.

SOURCE West Coast Bancorp

http://www.wcb.com