Investors snap up West Coast

The $155 million West Coast Bancorp raised for new capital came at a cost.

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While West Coast Bancorp was able to raise $155 million in new capital, it sold 83% of itself to the new investors in the process.

The bank cut the new investors a deal granting them stock at $2 a share, less than 20 percent of the book value of the bank’s stock as of Sept. 30.

But the traditional metrics of a bank’s market value are out the window in today’s environment. The economic downturn has brutalized community banks like West Coast. Continuing uncertainty over the economy and non-performing loan issues that refuse to go away have pushed bank values to unforeseen lows.

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