A Message to Our Valued Clients from West Coast Bank President and CEO, Bob Sznewajs

Expanded FDIC Coverage for You and Your Business

If you've been following the news and headlines, you probably have questions about what the current environment may mean for you and your money. As is typical, the headlines tend to be somewhat provocative to capture the reader's attention. Perhaps, you may be wondering about West Coast Bank's current position in line with the current economic environment.

As I have shared in many different forums, our strategy and focus remains constant. We are committed to our customers and the communities we serve. West Coast Bank is a very strong franchise, with a great presence in the markets we serve. All banks in the Pacific Northwest are experiencing challenges in the residential construction industry. Unlike many of the struggling investment banks, which are heavily leveraged, and therefore vulnerable, West Coast Bank is a commercial bank. That means we are well funded by customer deposits.

Several other key facts about West Coast Bank:

• As one of the country's larger regional community banks, West Coast Bank is well capitalized and a financially sound bank.
• Our capital and capital ratio, continues to very strong at 10.78%, with well capitalized being 10%.
• Our equity position is over $235 million.
• As stated in our SEC filing and press releases, non-performing 2-step loans, peaked in the third quarter of 2008, and we expect a significant decline in the non-performing assets over the next twelve months.
• Your deposits have expanded FDIC Coverage.

In addition to West Coast Bank's strength as a financial institution, your deposits are FDIC-insured up to $250,000. And, in October, West Coast Bank opted into a new FDIC program to cover all non-interest bearing deposits regardless of the amount. To learn more about the recently expanded FDIC options, visit click here.

Hopefully, this information is helpful in understanding a little more about West Coast Bank, and the strength we bring to the table. Although the current environment is unlike anything we have seen, it is important to remember that it won't last forever. Every recession does end. As for West Coast Bank, we will continue to operate our company as we have for eighty-five years-as a community bank committed to serving the communities we are part of. We are in business for you and your business.

Sincerely,

Bob