Unassociated Document

Lake Oswego, OR – January 25, 2010 – West Coast Bancorp (NASDAQ: WCBO) (“Bancorp” or “Company”) today announced a net loss for the fourth quarter of 2009 of $51.8 million or $3.32 loss per diluted share compared to a net loss for fourth quarter 2008 of $8.7 million or $.56 loss per diluted share. The Company’s fourth quarter results were significantly impacted by establishment of a $23.4 million deferred tax asset valuation allowance, OREO valuation adjustments and losses upon dispositions totaling $14.5 million ($9.4 million after-tax), and a provision for credit losses of $35.2 million ($22.9 million after-tax). Combined these three items contributed approximately $73.1 million ($55.7 million after-tax) to the net loss for the fourth quarter. For the full year 2009, the Company reported a net loss of $94.2 million or $6.02 per diluted share, compared to a net loss of $6.3 million or $.41 per diluted share for the same period in 2008. As a result of the net loss in 2009 and recent federal tax law changes that enabled the Company to carry 2009 net operating tax losses back to additional prior tax years, the Company expects to receive a federal tax refund during the first quarter of 2010 of approximately $29 million.

As previously announced, on January 20, 2010, shareholders approved an increase in authorized common stock from 50.0 million shares to 250.0 million shares and the conversion of preferred stock issued in the Company's October private placement transactions into common stock. The private placement transactions resulted in gross proceeds to the Company of approximately $155.0 million and net proceeds of $139.2 million, of which $134.2 million was contributed to West Coast Bank on October 26, 2009.

As a result of the shareholder approvals, mandatorily convertible Series A preferred stock issued in the transactions will convert into 71.4 million shares of common stock on January 27, 2010. Including the Company’s existing 15.6 million common shares, following conversion of the Series A preferred stock there will be approximately 87.1 million shares of common stock outstanding. Additionally, 121,328 shares of mandatorily convertible Series B preferred stock issued in the transactions became mandatorily convertible into a total of 6.1 million shares of common stock, but only after such shares have been transferred to third parties not affiliated with certain original investors in a widely dispersed offering. Furthermore, certain investors in the transactions will continue to hold warrants to purchase at a price of $100 per preferred share an aggregate of 240,000 additional shares of Series B preferred stock convertible into 12,000,000 shares of common stock upon transfer to third parties in a widely disbursed offering.

“The successful private placements of $155 million during the fourth quarter of 2009 were an important accomplishment as the new capital enables the Company to refocus its efforts on growing loans while reducing its nonperforming assets,” said Robert D. Sznewajs, President and CEO. “The combination of growing loans, reducing nonperforming assets and controlling operating expenses while maintaining capital ratios in excess of the regulatory requirements will allow us the opportunity to take advantage of market place opportunities in spite of these difficult economic times”, continued Mr. Sznewajs.

West Coast Bank’s year end 2009 regulatory capital ratios increased significantly from September 30, 2009 as a result of Bancorp’s $134.2 million capital contribution to the Bank. Additionally, as shown in Table 1 below, the shareholder approvals to increase authorized common shares and to convert preferred shares to common shares will also result in significant improvements to Bancorp’s regulatory capital ratios as the capital raised by Bancorp will now qualify as Tier 1 capital at the holding company level for regulatory purposes.

Table 1

SELECTED PRO FORMA INFORMATION

Risk Based Capital Ratios	Actual
	Dec. 31,			Dec. 31,			Proforma
	2008			2009			Dec. 31, 20091			Increase
West Coast Bancorp
Tier 1 capital ratio		9.96	%		7.74	%		14.54	%		6.80
Total capital ratio		11.21	%		9.00	%		15.80	%		6.80
Leverage ratio		9.46	%		5.79	%		10.87	%		5.08

West Coast Bank
Tier 1 capital ratio		9.66	%		13.99	%		13.99	%		—
Total capital ratio		10.91	%		15.25	%		15.25	%		—
Leverage ratio		9.17	%		10.46	%		10.46	%		—

Share and Per Share Figures	Actual
	Dec. 31,			Dec. 31,			Proforma
(shares in thousands)	2008			2009			Dec. 31, 20092			Increase
Outstanding shares		15,696			15,641			87,083			71,442
Q4 loss per diluted share	$	(0.56	)	$	(3.32	)	$	(0.58	)
Full year loss per diluted share	$	(0.41	)	$	(6.02	)	$	(1.03	)
Book value per share	$	12.63		$	6.83		$	2.83

1 Pro forma risk-based capital ratios for West Coast Bancorp are reported as if shareholder approvals had been obtained as of
December 31, 2009 and the Series A preferred stock had been converted into common stock as of that date. Following the approvals
and conversion, the Series B preferred stock that remains outstanding will also qualify as Tier 1 capital and is therefore included in
the pro forma figures.

2 Pro forma share and per share figures are reported as if shareholder approvals had been obtained as of December 31, 2009,
and the Series A preferred stock had been converted into 71,442 shares of common stock. These figures do not include shares of
common stock issuable upon conversion of the Series B preferred stock that is not being converted immediately.

Key balance sheet changes in 2009 included the loan portfolio contracting significantly, deposit balances increasing, and the Company raising the substantial amount of additional capital noted above. The combination of these trends caused the investment securities portfolio to grow rapidly and represent 22% of total earning assets at December 31, 2009, up from 9% twelve months earlier. The Company’s loan to deposit ratio declined from 102% at year end 2008 to 80% at December 31, 2009, demonstrating significant improvement in the Company’s liquidity position and balance sheet flexibility to grow the loan portfolio going forward.

More specifically, total loans declined $340 million or 16% during 2009 to $1.72 billion at December 31, 2009 as the recession and the internal lending and capital management strategies dramatically affected new loan originations, particularly of construction and commercial loans. The construction loan portfolio contracted $186 million or 65% over the past twelve months alone. Throughout 2009, the local housing market continued to work through its oversupply as evidenced by the estimated 7,400 new housing permits issued in Oregon in 2009 as compared to the high water mark of 31,000 permits issued in 2005. In part due to borrowers having de-leveraged over the past year, commercial loan balances declined $112 million or 23% during 2009. The recession has also had a significant adverse effect on employment and manufacturing activity in the region. For example, the number of manufacturing jobs in Oregon peaked at 208,500 in 2006 and had fallen to 162,800 in December 2009, a decrease of 22% and 45,700 jobs.

Table 2

PERIOD END LOANS

(Dollars in thousands)	Dec. 31,			% of			Dec. 31,			% of			Change						Sept. 30,			% of
	2009			total			2008			total			Amount			%			2009			total
Commercial loans	$	370,077			21	%	$	482,405			23	%	$	(112,328	)		-23	%	$	406,807			22	%
Commercial real estate construction		29,574			2	%		92,414			4	%		(62,840	)		-68	%		43,944			2	%
Residential real estate construction		69,736			4	%		192,735			10	%		(122,999	)		-64	%		105,921			6	%
Total real estate construction loans		99,310			6	%		285,149			14	%		(185,839	)		-65	%		149,865			8	%
Mortgage		74,977			4	%		87,628			4	%		(12,651	)		-14	%		78,144			4	%
Nonstandard mortgage		20,108			1	%		32,597			2	%		(12,489	)		-38	%		21,952			1	%
Home equity		279,583			17	%		272,983			13	%		6,600			2	%		282,552			16	%
Total real estate mortgage		374,668			22	%		393,208			19	%		(18,540	)		-5	%		382,648			21	%
Commercial real estate loans		862,193			50	%		882,092			43	%		(19,899	)		-2	%		863,658			48	%
Installment and other consumer loans		18,594			1	%		21,942			1	%		(3,348	)		-15	%		19,023			1	%
Total	$	1,724,842					$	2,064,796					$	(339,954	)		-16	%	$	1,822,001

Two-step residential construction
loans	$	2,407			0	%	$	53,084			3	%	$	(50,677	)		-95	%	$	5,128			0	%
Total loans other than two-step loans		1,722,435			100	%		2,011,712			97	%		(289,277	)		-14	%		1,816,873			100	%
Total	$	1,724,842			100	%	$	2,064,796			100	%	$	(339,954	)		-16	%	$	1,822,001			100	%

Yield on loans		5.23	%					6.03	%					(0.80	)					5.25	%

The Company’s investment securities portfolio expanded from $199 million at December 31, 2008 to $562 million at year end 2009. The Company invested a significant amount of cash generated from the declining loan portfolio, the fourth quarter capital raise, and higher deposit balances in investment securities. The excess cash was primarily invested in mortgage backed and US government agency securities with an overall projected duration of 3.5 years at year end 2009. These securities were purchased to manage the Company’s interest rate position while providing an adequate incremental return and sufficient cash flows for future loan growth.

Table 3

PERIOD END INVESTMENTS

(Dollars in thousands)	Dec. 31,			% of			Dec. 31,			% of			Change						Sept. 30,			% of
	2009			total			2008			total			Amount			%			2009			total
U.S. Treasury securities	$	25,007			4	%	$	223			0	%	$	24,784			11114	%	$	45,197			11	%
U.S. Government Agency securities		103,988			19	%		7,387			4	%		96,601			1308	%		39,603			10	%
Corporate securities		9,753			2	%		10,877			5	%		(1,124	)		-10	%		10,621			3	%
Mortgage-backed securities		344,294			61	%		92,566			46	%		251,728			272	%		233,206			56	%
Obligations of state and political sub.		70,018			12	%		82,398			42	%		(12,380	)		-15	%		73,903			18	%
Equity investments and other securities		9,217			2	%		5,064			3	%		4,153			82	%		9,454			2	%
Total	$	562,277			100	%	$	198,515			100	%	$	363,762			183	%	$	411,984			100	%

Yield on investments (tax-equivalent basis)		3.69	%					5.26	%					(1.57	)					4.01	%

Table 4

QUARTERLY AVERAGE DEPOSITS BY CATEGORY

(Dollars in thousands)	Dec. 31,			% of			Dec. 31,			% of			Change						Sept. 30,			% of
	2009			total			2008			total			Amount			%			2009			total
Demand deposits	$	539,547			25	%	$	467,768			23	%	$	71,779			15	%	$	508,758			24	%
Interest bearing demand		316,584			15	%		261,395			13	%		55,189			21	%		311,319			14	%
Savings		95,566			4	%		77,189			4	%		18,377			24	%		93,611			4	%
Money market		641,770			30	%		636,013			31	%		5,757			1	%		635,511			30	%
Time deposits		553,688			26	%		584,137			29	%		(30,449	)		-5	%		610,907			28	%
Total	$	2,147,155			100	%	$	2,026,502			100	%	$	120,653			6	%	$	2,160,106			100	%

Rate on total deposits		0.99	%					1.68	%					(0.69	)					1.14	%

Table 6

SUMMARY INCOME STATEMENT

(Dollars in thousands)	Q4			Q4						Full year			Full year
	2009			2008			Change			2009			2008			Change

Net interest income	$	19,238		$	21,137		$	(1,899	)	$	78,727		$	92,150		$	(13,423	)
Provision for credit losses		35,233			16,517			(18,716	)		90,057			40,367			(49,690	)
Noninterest income		(6,148	)		4,310			(10,458	)		9,129			24,629			(15,500	)
Noninterest expense		24,181			22,535			(1,646	)		108,288			90,323			(17,965	)
Net loss		(46,324	)		(13,605	)		(32,719	)		(110,489	)		(13,911	)		(96,578	)
Provision (benefit) for income taxes		5,507			(4,924	)		(10,431	)		(16,312	)		(7,598	)		8,714
Net loss	$	(51,831	)	$	(8,681	)	$	(43,150	)	$	(94,177	)	$	(6,313	)	$	(87,864	)

The Company’s net interest margin compressed 65 basis points from the fourth quarter of 2008 to 3.05% in the most recent quarter, while net interest income declined $1.9 million from the fourth quarter of 2008 to $19.2 million. These declines were primarily caused by the considerable shift in the earning asset mix from higher yielding loan balances to lower yielding cash and investment securities balances, the lengthening of the Company’s Federal Home Loan Bank borrowings in the first half of 2009, and the declining benefit from non-interest bearing demand deposit balances in the very low interest rate environment.

Excluding OREO valuation adjustments and losses on OREO dispositions, the Company’s noninterest income increased $.3 million or 4% to $8.3 million year-over-year fourth quarter. Fourth quarter 2009 deposit service charges and trust and investment revenues were relatively unchanged from the same quarter in 2008. Mainly due to an increase in the number of deposit transaction accounts and associated cards, total payment systems revenues grew 8% from the fourth quarter of 2008. Gain on sales of loans declined from the fourth quarter of 2008 due to reduced originations and sales of residential mortgage loans and no gains on sales of Small Business Administration loans during the most recent quarter.

Table 8

NONINTEREST INCOME

(Dollars in thousands)	Q4			Q4						Full year			Full year
	2009			2008			Change			2009			2008			Change
Noninterest income
Service charges on deposit accounts	$	3,789		$	3,853		$	(64	)	$	15,765		$	15,547		$	218
Payment systems related revenue		2,402			2,225			177			9,399			9,033			366
Trust and investment services revenues		1,071			1,053			18			4,101			5,413			(1,312	)
Gains on sales of loans		173			244			(71	)		1,738			2,328			(590	)
Other		885			633			252			4,438			3,252			1,186
Other-than-temporary impairment losses		—			—			—			(192	)		(6,338	)		6,146
Gain on sales of securities		—			3			(3	)		833			780			53
Total		8,320			8,011			309			36,082			30,015			6,067

OREO losses on sale		(862	)		(280	)		(582	)		(1,725	)		(602	)		(1,123	)
OREO valuation adjustments		(6,940	)		(3,421	)		(3,519	)		(18,562	)		(4,784	)		(13,778	)
OREO loss on bulk sale		(6,666	)		—			(6,666	)		(6,666	)		—			(6,666	)
Total		(14,468	)		(3,701	)		(10,767	)		(26,953	)		(5,386	)		(21,567	)

Total noninterest income	$	(6,148	)	$	4,310		$	(10,458	)	$	9,129		$	24,629		$	(15,500	)

As presented in table 9 below, fourth quarter 2009 total non-interest expense of $24.2 million increased 7% or $1.6 million from the final quarter in 2008. The combination of $1.1 million higher equipment and occupancy expenses related to review and disposal of fixed assets, a $.4 million increase in FDIC deposit insurance premiums and a $1.4 million increase in OREO operating expenses caused the fourth quarter year-over-year expense increase. Despite lower deferred loan origination expenses and more personnel in the special assets functions, total personnel expense fell slightly in the most recent quarter compared to the fourth quarter of 2008. For the full year, personnel expense was $44.6 million or 6% lower than in 2008.

Table 9

NONINTEREST EXPENSE

(Dollars in thousands)	Q4		Q4					Full year		Full year
	2009		2008		Change			2009		2008		Change
Noninterest expense
Salaries and employee benefits	$	11,393	$	11,483	$	(90	)	$	44,608	$	47,500	$	(2,892	)
Equipment		2,620		1,808		812			8,120		7,117		1,003
Occupancy		2,677		2,414		263			9,585		9,440		145
Payment systems related expense		1,076		935		141			4,036		3,622		414
Professional fees		953		1,235		(282	)		4,342		4,317		25
Postage, printing and office supplies		781		877		(96	)		3,201		3,834		(633	)
Marketing		832		773		59			2,990		3,583		(593	)
Communications		375		456		(81	)		1,574		1,722		(148	)
Goodwill impairment		—		—		—			13,059		—		13,059
Other noninterest expense		3,474		2,554		920			16,773		9,188		7,585
Total		24,181		22,535		1,646			108,288		90,323		17,965

Due to recent tax law changes, which apply only to banks that did not receive government assistance through the US Treasury Department’s Troubled Asset Relief Program, the Company can carry back its tax losses from 2009 to offset federal taxes paid in the previous five years as opposed to the two year carry back under the prior tax laws. Due to these tax law changes and the Company’s tax losses in 2009, the Company will receive an estimated $29 million federal tax refund in early 2010 for losses incurred during 2009.

Furthermore, the Company established a $23.4 million valuation allowance against the deferred tax asset balance as of December 31, 2009, which reduced its year end deferred tax asset to $2.2 million. The primary factors in this decision were the Company’s continuing and cumulative losses over the past two years. As shown in table 10 below, the $23.4 million valuation allowance resulted in a fourth quarter 2009 income tax expense of $5.5 million, rather than the $17.8 million benefit for income taxes that would have been recognized in the fourth quarter of 2009 without establishing the valuation allowance. Looking forward management will review the deferred tax asset valuation allowance on a quarterly basis. Any future reversals of the deferred tax asset valuation allowance, as a result of the Company returning to profitability, would decrease the Company’s income tax expense and increase its after tax net income in the periods of reversals.

Total net charge-offs measured $35.9 million in the most recent quarter, up from $21.0 million in the fourth quarter of 2008. Over half of the increase in net charge-offs can be attributed a $10.2 million increase in commercial loan net charge-offs. Net charge-offs also increased in the residential construction, mortgage, and commercial real estate categories. Fourth quarter 2009 net charge-offs reflected the Company aggressively managing its nonperforming assets and the continuing challenges in real estate markets and adverse economic conditions in our markets. The unemployment rates in Oregon and Washington at 11.0% and 9.5%, respectively, in December 2009 remain elevated.

The Company recorded a fourth quarter 2009 provision for credit losses of $35.2 million, up from $16.5 million in the same quarter of 2008. The significant loan net charge-offs and a continued negative loan risk rating migration during the fourth quarter, along with higher general valuation allowances in the 2009 year end allowance model, affected the provision for credit losses in the final quarter of 2009. The level of the Company’s future provisioning will be heavily dependent on the local real estate market, the level of interest rates, and general economic conditions nationally and in the areas in which we do business.

WEST COAST BANCORP REPORTS FOURTH QUARTER 2009 EARNINGS

January 25, 2010

Page 9 of 16

Table 11

ALLOWANCE FOR CREDIT LOSSES AND NET CHARGEOFFS

(Dollars in thousands)	Q4			Q3			Q2			Q1			Q4
	2009			2009			2009			2009			2008
Allowance for credit losses, beginning of period	$	40,036		$	38,569		$	38,463		$	29,934		$	34,444
Provision for credit losses loans other than two-step loans		35,149			19,575			9,004			20,028			11,741
Provision for credit losses two-step loans		84			725			2,389			3,103			4,776
Total provision for credit losses		35,233			20,300			11,393			23,131			16,517
Loan net charge-offs:
Commercial		13,271			5,744			1,333			1,058			3,086
Commercial real estate construction		—			324			—			—			1,422
Residential real estate construction		9,813			7,811			4,877			5,101			5,299
Two-step residential construction		725			725			2,389			3,524			5,857
Total real estate construction		10,538			8,860			7,266			8,625			12,578
Mortgage		4,734			3,018			1,244			1,015			1,640
Nonstandard mortgage		692			725			320			1,929			2,457
Home equity		1,346			203			529			1,281			119
Total real estate mortgage		6,772			3,946			2,093			4,225			4,216
Commercial real estate		4,733			(79	)		172			406			782
Installment and consumer		285			128			251			110			14
Overdraft		252			234			172			178			351
Total loan net charge-offs		35,851			18,833			11,287			14,602			21,027

Total allowance for credit losses	$	39,418		$	40,036		$	38,569		$	38,463		$	29,934
Components of allowance for credit losses:
Allowance for loan losses	$	38,490		$	39,075		$	37,700		$	37,532		$	28,920
Reserve for unfunded commitments		928			961			869			931			1,014
Total allowance for credit losses	$	39,418		$	40,036		$	38,569		$	38,463		$	29,934

Net loan charge-offs to average loans (annualized)		7.94	%		4.01	%		2.30	%		2.92	%		4.00	%
Allowance for loan losses to total loans		2.23	%		2.14	%		1.97	%		1.88	%		1.40	%
Allowance for credit losses to total loans		2.29	%		2.20	%		2.01	%		1.92	%		1.45	%
Allowance for loan losses to nonperforming loans		39	%		30	%		30	%		29	%		23	%
Allowance for credit losses to nonperforming loans		40	%		30	%		30	%		30	%		23	%

The total allowance for credit losses increased from $29.9 million or 1.45% of total outstanding loan balances at year end 2008 to $39.4 million or 2.29% at December 31, 2009. The unallocated portion of the allowance for loan losses amounted to $5.0 million or 12.7% of the total allowance for credit losses at year end 2009, up from $1.9 million and 6.4%, respectively, twelve months earlier. The Company’s estimate of appropriate reserve amounts will continue to be primarily dependent on the loan portfolio’s credit quality performance trends, including net charge-offs, which will be heavily dependent on local economic conditions.

Total non-performing assets declined 27% or $55.7 million to $152.9 million or 5.6% of total assets as of December 31, 2009 from $208.6 million and 7.9% at September 30, 2009, and $197.7 million and 7.9% at year end 2008. The balance of total nonperforming assets at year end reflected write downs totaling over $90 million or 38% from the original loan principal balance compared to write downs of 29% at the end of the third quarter. The fourth quarter disposition of $42.3 million in OREO properties, $35.9 million in loan net charge-offs, and $14.5 million in OREO valuation allowances more than offset the $29.4 million fourth quarter inflow of new nonaccrual loans. Two-step nonperforming assets were $28.1 million at December 31, 2009, down from $110.0 million twelve months earlier and from $61.7 million at the end of the third quarter.

Table 12

NONPERFORMING ASSETS

(Dollars in thousands)	Dec. 31.			Sept. 30,			June 30,			March 31,			Dec. 31,
	2009			2009			2009			2009			2008
Loans on nonaccrual status:
Commercial	$	36,211		$	49,871		$	34,396		$	29,014		$	6,250
Real estate construction:
Commercial real estate construction		1,488			2,449			2,922			2,923			2,922
Residential real estate construction		22,373			42,277			56,507			70,942			90,712
Total real estate construction		23,861			44,726			59,429			73,865			93,634
Real estate mortgage:
Mortgage		11,563			12,498			14,179			9,467			8,283
Nonstandard mortgage		8,752			10,810			10,486			10,972			15,229
Home equity		2,036			1,599			1,259			961			1,043
Total real estate mortgage		22,351			24,907			25,924			21,400			24,555
Commercial real estate		16,778			12,463			6,905			3,980			3,145
Installment and consumer		144			39			69			22			6
Total nonaccrual loans		99,345			132,006			126,723			128,281			127,590
90 days past due not on nonaccrual		—			—			—			—			—
Total non-performing loans		99,345			132,006			126,723			128,281			127,590

Other real estate owned		53,594			76,570			83,830			87,189			70,110
Total non-performing assets	$	152,939		$	208,576		$	210,553		$	215,470		$	197,700

Non-performing loans to total loans		5.76	%		7.25	%		6.61	%		6.42	%		6.18	%
Non-performing assets to total assets		5.60	%		7.86	%		8.06	%		8.63	%		7.86	%

Total nonaccrual loans declined by $32.7 million in the fourth quarter to $99.3 million at year end 2009. This decline was driven by a $20.9 million reduction in nonaccrual construction loans and a $13.7 million decline in nonaccrual commercial loans. Fourth quarter nonaccrual construction loans fell due to net charge-offs, a lower inflow of new nonaccrual loan balances from the residential construction portfolio compared to prior quarters, and the Company taking ownership of more primarily residential site development and construction properties related to loans previously on nonaccrual status. Also, the Company impaired a number of large commercial loans in the fourth quarter. At December 31, 2009, the total nonaccrual loan portfolio had been written down 30% compared to 24% as of September 30, 2009.

The Company’s OREO property disposition activities were strong during the final quarter of 2009. Including the bulk sale of 69 properties with a book value of $18.9 million, the Company disposed of 165 OREO properties with a book value of $42.3 million during the fourth quarter. The number of closed OREO sales outside the bulk sale accelerated from 70 to 96 quarter over quarter. Of the 165 properties sold in the quarter, 121 were properties associated with previous two-step loans and 44 properties related to other loans. The December 31, 2009 total OREO portfolio consisted of 672 properties valued at $53.6 million. The OREO balance reflected a write-down of 49% from the original principal of the loans compared to 38% at the end of the third quarter. The majority of the properties added to OREO during the fourth quarter consisted of 405 lots within 9 site development projects. These lots contributed to the reduction in the average OREO property book value to $80,000 at December 31, 2009 from $254,000 at September 30, 2009. The projects are primarily located in Seattle, Maple Valley, Vancouver, Washougal, and Puyallup in the state of Washington and in Salem, Oregon.

The Company will hold a Webcast conference call Monday, January 25, 2010, at 11:00 a.m. Pacific Time, during which the Company will discuss fourth quarter 2009 results and key activities. To access the conference call via a live Webcast, go to www.wcb.com and click on Investor Relations and the “4th Quarter 2009 Earnings Conference Call” tab. The conference call may also be accessed by dialing (877) 247-4281 Conference ID#: 48338219 a few minutes prior to 11:00 a.m. Pacific Time. The call will be available for replay by accessing the Company’s website at www.wcb.com and following the same instructions.

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. These statements can be identified by words in this release by words such as "expects," "believes," or "will." 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.

Table 15

INCOME STATEMENT

(Dollars in thousands, unaudited)	Q4			Q4			Q3			Full year			Full year
	2009			2008			2009			2009			2008
Net interest income
Interest and fees on loans	$	23,457		$	29,605		$	24,535		$	100,356		$	129,517
Interest on investment securities		3,309			2,388			3,063			11,422			10,951
Other interest income		182			24			127			372			378
Total interest income		26,948			32,017			27,725			112,150			140,846
Interest expense on deposit accounts		5,382			8,562			6,216			24,442			37,549
Interest on borrowings and subordinated debentures		2,328			2,318			2,364			8,981			11,147
Total interest expense		7,710			10,880			8,580			33,423			48,696
Net interest income		19,238			21,137			19,145			78,727			92,150

Provision for credit losses		35,233			16,517			20,300			90,057			40,367

Noninterest income
Service charges on deposit accounts		3,789			3,853			4,038			15,765			15,547
Payment systems related revenue		2,402			2,225			2,501			9,399			9,033
Trust and investment services revenues		1,071			1,053			1,140			4,101			5,413
Gains on sales of loans		173			244			466			1,738			2,328
OREO valuation adjustments and losses on sale		(14,468	)		(3,701	)		(3,998	)		(26,953	)		(5,386	)
Other		885			633			824			4,438			3,252
Other-than-temporary impairment losses		—			—			—			(192	)		(6,338	)
Gain on sales of securities		—			3			—			833			780
Total noninterest income		(6,148	)		4,310			4,971			9,129			24,629
Noninterest expense
Salaries and employee benefits		11,393			11,483			10,753			44,608			47,500
Equipment		2,620			1,808			1,758			8,120			7,117
Occupancy		2,677			2,414			2,247			9,585			9,440
Payment systems related expense		1,076			935			1,043			4,036			3,622
Professional fees		953			1,235			1,091			4,342			4,317
Postage, printing and office supplies		781			877			799			3,201			3,834
Marketing		832			773			832			2,990			3,583
Communications		375			456			402			1,574			1,722
Goodwill impairment		—						—			13,059
Other noninterest expense		3,474			2,554			4,564			16,773			9,188
Total noninterest expense		24,181			22,535			23,489			108,288			90,323
Loss before income taxes		(46,324	)		(13,605	)		(19,673	)		(110,489	)		(13,911	)
Provision (benefit) for income taxes		5,507			(4,924	)		(7,265	)		(16,312	)		(7,598	)
Net loss	$	(51,831	)	$	(8,681	)	$	(12,408	)	$	(94,177	)	$	(6,313	)

Loss per share:
Basic	$	(3.32	)	$	(0.56	)	$	(0.79	)	$	(6.02	)	$	(0.41	)
Diluted	$	(3.32	)	$	(0.56	)	$	(0.79	)	$	(6.02	)	$	(0.41	)

Weighted average common shares		15,510			15,489			15,520			15,510			15,472
Weighted average diluted shares		15,510			15,489			15,520			15,510			15,472

Tax equivalent net interest income	$	19,592		$	21,558		$	19,505		$	80,222		$	93,901

Table 16

BALANCE SHEETS

(Dollars in thousands, unaudited)	Dec 31.			Dec 31.			Sept. 30
	2009			2008			2009
Assets:
Cash and cash equivalents	$	303,097		$	64,778		$	251,642
Investments		562,277			198,515			411,984
Total loans		1,724,842			2,064,796			1,822,001
Allowance for loan losses		(38,490	)		(28,920	)		(39,075	)
Loans, net		1,686,352			2,035,876			1,782,926
OREO, net		53,594			70,110			76,570
Goodwill and other intangibles		637			14,054			716
Other assets		124,625			132,807			129,519
Total assets	$	2,730,582		$	2,516,140		$	2,653,357

Liabilities and Stockholders' Equity:
Demand	$	542,215		$	478,292		$	522,629
Savings and interest-bearing demand		422,838			346,206			401,256
Money market		657,306			615,588			651,198
Time deposits		524,525			584,293			580,743
Total deposits		2,146,884			2,024,379			2,155,826
Borrowings and subordinated debentures		314,299			274,059			314,299
Reserve for unfunded commitments		928			1,014			961
Other liabilities		22,377			18,501			20,588
Total liabilities		2,484,488			2,317,953			2,491,674
Stockholders' equity		246,094			198,187			161,683
Total liabilities and stockholders' equity	$	2,730,582		$	2,516,140		$	2,653,357

Common shares outstanding period end		15,641			15,696			15,647
Book value per common share	$	6.83		$	12.63		$	10.33
Tangible book value per common share	$	6.79		$	11.73		$	10.29

AVERAGE BALANCE SHEETS

(Dollars in thousands)	QTD Dec 31.			QTD Dec 31.			QTD Sept. 30			Full year			Full year
	2009			2008			2009			2009			2008
Cash and cash equivalents	$	334,258		$	60,362		$	241,886		$	191,050		$	75,097
Investments		460,394			201,917			387,830			337,541			229,478
Total loans		1,791,572			2,092,926			1,865,050			1,914,975			2,146,869
Allowance for loan losses		(41,356	)		(33,879	)		(39,336	)		(37,363	)		(38,328	)
Loans, net		1,750,216			2,059,047			1,825,714			1,877,612			2,108,541
Other assets		199,501			187,519			206,485			209,073			156,503
Total assets		2,744,369			2,508,845			2,661,915			2,615,276			2,569,619

Demand	$	539,547		$	467,768		$	508,758		$	499,283		$	470,601
Savings and interest-bearing demand		412,150			338,584			404,930			387,905			350,769
Money market		641,770			636,013			635,511			617,881			658,360
Time deposits		553,688			584,137			610,907			587,299			566,195
Total deposits		2,147,155			2,026,502			2,160,106			2,092,368			2,045,925
Borrowings and subordinated debentures		314,299			276,336			314,299			304,085			300,759
Other liabilities		22,812			5,292			20,035			19,044			16,409
Stockholders' equity		260,103			200,715			167,475			199,779			206,526
Total liabilities and stockholders' equity	$	2,744,369		$	2,508,845		$	2,661,915		$	2,615,276		$	2,569,619

Table 17

ALLOWANCE FOR CREDIT LOSSES

(Dollars in thousands)	Full year			Full year
	Dec 31.			Dec 31.
	2009			2008
Allowance for credit losses, beginning of period	$	29,934		$	54,903
Provision for credit losses loans other than two-step loans		83,756			30,867
Provision for credit losses two-step loans		6,301			9,500
Total provision for credit losses		90,057			40,367
Loan charge-offs:
Commercial		22,411			6,464
Commercial real estate construction		325			1,422
Residential real estate construction		28,287			10,105
Two-step residential construction		6,963			42,483
Total real estate construction		35,575			54,010
Mortgage		10,022			1,811
Nonstandard mortgage		3,666			3,036
Home equity		3,394			249
Total real estate mortgage		17,082			5,096
Commercial real estate		5,383			826
Installment and consumer		840			531
Overdraft		1,054			1,328
Total loan charge-offs		82,345			68,255
Loan recoveries:
Commercial		1,005			203
Commercial real estate construction		—			—
Residential real estate construction		44			—
Two-step residential construction		241			2,339
Total real estate construction		285			2,339
Mortgage		11			—
Nonstandard mortgage		1			38
Home equity		35			32
Total real estate mortgage		47			70
Commercial real estate		151			—
Installment and consumer		65			78
Overdraft		219			229
Total loan recoveries		1,772			2,919
Net charge-offs		80,573			65,336

Total allowance for credit losses	$	39,418		$	29,934
Components of allowance for credit losses:
Allowance for loan losses	$	38,490		$	28,920
Reserve for unfunded commitments		928			1,014
Total allowance for credit losses	$	39,418		$	29,934

Net loan charge-offs to average loans		4.21	%		3.04	%

Table 18

DELINQUENT LOANS 30-89 DAYS PAST DUE AS A % OF LOAN CATEGORY

(Dollars in thousands)	Dec. 31.			Dec. 31.			Sept. 30
	2009			2008			2009
Commercial loans		0.31	%		0.58	%		0.16	%
Real estate construction loans		0.61	%		0.68	%		5.68	%
Real estate mortgage loans		0.71	%		0.49	%		0.71	%
Commercial real estate loans		0.46	%		0.15	%		0.14	%
Installment and other consumer loans		0.32	%		0.36	%		0.09	%

Delinquent loans to total loans		0.49	%		0.39	%		0.72	%

Delinquent loans 30-89 days past due:
Two-step residential construction loans	$	—		$	1,242		$	—
Total loans other than two-step loans		8,427			6,850			13,136
Total delinquent loans 30-89 days past due, not in nonaccrual status	$	8,427		$	8,092		$	13,136

Table 19

OTHER REAL ESTATE OWNED ACTIVITY

(Dollars in thousands)
	Two-step related OREO activity						Non two-step related OREO activity						Total OREO related activity
	Amount			Number			Amount			Number			Amount			Number
Full year 2008:
Beginning balance January 1, 2008	$	3,255			14		$	—			1		$	3,255			15
Additions to OREO		75,863			294			11,936			42			87,799			336
Capitalized improvements		1,319						10						1,329
Valuation adjustments		(4,286	)					(499	)					(4,785	)
Disposition of OREO properties		(16,129	)		(57	)		(1,359	)		(6	)		(17,488	)		(63	)
Ending balance Dec. 31, 2008	$	60,022			251		$	10,088			37		$	70,110			288

Beginning balance January 1, 2009		60,022			251			10,088			37			70,110			288
Additions to OREO		20,635			62			4,614			17			25,249			79
Capitalized improvements		668						14						682
Valuation adjustments		(4,110	)					(651	)					(4,761	)
Disposition of OREO properties		(3,896	)		(17	)		(195	)		(1	)		(4,091	)		(18	)
Ending balance March 31, 2009	$	73,319			296		$	13,870			53		$	87,189			349

Additions to OREO		9,822			33			3,841			15			13,663			48
Capitalized improvements		1,080						76						1,156
Valuation adjustments		(2,320	)					(744	)					(3,064	)
Disposition of OREO properties		(12,269	)		(51	)		(2,845	)		(11	)		(15,114	)		(62	)
Ending balance June 30, 2009	$	69,632			278		$	14,198			57		$	83,830			335

Additions to OREO		2,130			9			8,979			27			11,109			36
Capitalized improvements		869						86						955
Valuation adjustments		(3,347	)					(450	)					(3,797	)
Disposition of OREO properties		(12,728	)		(54	)		(2,799	)		(16	)		(15,527	)		(70	)
Ending balance Sept. 30, 2009	$	56,556			233		$	20,014			68		$	76,570			301

Additions to OREO		2,137			10			22,016			526			24,153			536
Capitalized improvements		2,033						107						2,140
Valuation adjustments		(4,927	)					(2,013	)					(6,940	)
Disposition of OREO properties		(30,137	)		(121	)		(12,192	)		(44	)		(42,329	)		(165	)
Ending balance Dec. 31, 2009	$	25,662			122		$	27,932			550		$	53,594			672

Full year 2009:
Beginning balance January 1, 2009	$	60,022			251		$	10,088			37		$	70,110			288
Additions to OREO		34,724			114			39,450			585			74,174			699
Capitalized improvements		4,650						283						4,933
Valuation adjustments		(14,704	)					(3,858	)					(18,562	)
Disposition of OREO properties		(59,030	)		(243	)		(18,031	)		(72	)		(77,061	)		(315	)
Ending balance Dec. 31, 2009	$	25,662			122		$	27,932			550		$	53,594			672

Table 5

NUMBER OF DEPOSIT ACCOUNTS

(In thousands)	Dec 31.		Dec 31.		Full year						Sept. 30		Q4			Annualized
	2009		2008		Change			%			2009		Change			%
Demand deposits		48,160		45,394		2,766			6	%		47,763		397			3	%
Interest bearing demand		49,311		46,199		3,112			7	%		48,693		618			5	%
Savings		26,762		23,840		2,922			12	%		26,227		535			8	%
Money market		14,832		16,071		(1,239	)		-8	%		15,044		(212	)		-6	%
Time deposits		14,199		13,816		383			3	%		14,907		(708	)		-19	%
Total		153,264		145,320		7,944			5	%		152,634		630			2	%

Table 7

NET INTEREST SPREAD AND MARGIN

(Annualized, tax-equivalent basis)	Q4			Q4						Full year			Full year
	2009			2008			Change			2009			2008			Change
Yield on average interest-earning assets		4.25	%		5.57	%		(1.32	)		4.71	%		5.92	%		(1.21	)
Rate on average interest-bearing liabilities		1.59	%		2.36	%		(0.77	)		1.76	%		2.60	%		(0.84	)
Net interest spread		2.66	%		3.21	%		(0.55	)		2.95	%		3.32	%		(0.37	)
Net interest margin		3.05	%		3.70	%		(0.65	)		3.33	%		3.90	%		(0.57	)

Table 14

OTHER REAL ESTATE OWNED BY PROPERTY TYPE

(Dollars in thousands)	Dec. 31,		# of		Sept. 30,		# of
	2009		properties		2009		properties
Residential site developments	$	14,851		453	$	3,334		25
Non two-step homes		7,393		50		11,480		29
Non two-step lots		1,614		17		2,116		8
Land		1,607		7		717		3
Income producing properties		1,255		4		1,907		2
Condominiums		982		12		—		—
Multifamily		229		7		460		1
Two-step lots		3,621		54		5,016		63
Two-step homes		22,042		68		51,540		170
Total	$	53,594		672	$	76,570		301

Table 10

PROVISION FOR INCOME TAXES

(Dollars in thousands)	Q4			Q4						Full year			Full year
	2009			2008			Change			2009			2008			Change

Benefit for income taxes excluding
valuation allowance	$	(17,843	)	$	(4,924	)	$	12,919		$	(39,662	)	$	(7,598	)	$	32,064
Provision for taxes from deferred tax asset
valuation allowance		23,350			—			(23,350	)		23,350			—			(23,350	)
Total provision (benefit) for income taxes	$	5,507		$	(4,924	)	$	(10,431	)	$	(16,312	)	$	(7,598	)	$	8,714

Table 13

OTHER REAL ESTATE OWNED ACTIVITY

(Dollars in thousands)	Fourth quarter			# of			Full year			# of
	2009			properties			2009			properties
Beginning balance	$	76,570			301		$	70,110			288
Additions to OREO		26,293			536			79,107			699
Dispositions and valuation adjustments		(49,269	)		(165	)		(95,623	)		(315	)
Ending balance	$	53,594			672		$	53,594			672