8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) October 19, 2006

COAST  BANCORP

(Exact name of registrant as specified in its charter)

California	000-32827	77-0567091
(State or other jurisdiction of incorporation)	(Commission  File Number)	(IRS Employer Identification No.)
500 Marsh Street, San Luis Obispo, California		93401
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code(805) 541-0400

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o  Written communications pursuant to Rule 425 under the Securities

Act (17 CFR 230.425)

o  Soliciting material pursuant to Rule 14a-12 und er the Exchange

Act (17 CFR 240.14a-12)

o  Pre-commencement communications pursuant to Rule 14d-2(b) under

the Exchange Act (17 CFR 240.14d-2(b))

o  Pre-commencement communications pursuant to Rule 13e-4(c) under

the Exchange Act (17 CFR 240.13e-4c))

Item 2.02.     Results of Operations and Financial Condition

Earnings Release.  On October 19, 2006, Coast Bancorp issued a press release announcing its earnings for the nine months and quarter ended September 30, 2006. A copy of the press release is attached to this Current Report as Exhibit 99.1 and incorporated into this report by reference.

Item 9.01      Financial Statements and Exhibits.

(d)  Exhibits.

99.1  Press release announcing earnings for the nine months and quarter ended September 30, 2006.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: October 19, 2006	COAST BANCORP
	/s/ Jack C. Wauchope
	Jack C. Wauchope, President and Chief
	Executive Officer (Principal Executive Officer)

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EX-99.1

EXHIBIT 99.1

Earnings Announcement

San Luis Obispo, California — October 19, 2006

Coast Bancorp, the holding company for Coast National Bank, announced the preliminary financial results for the third quarter ended September 30, 2006.

Total Assets at September 30, 2006 were $178.3 million, a 4.0% decrease from $185.7 million at December 31, 2005.  Net Loans at September 30, 2006 were $143.0 million, an increase of $11.0 million from $132.0 at December 31, 2005.  Deposits as of September 30, 2006 were $160.3 million, a 5.1% decrease from $168.9 at December 31, 2005. Total stockholder equity increased 11.6% to $12.5 million as of September 30, 2006 as compared to $11.2 million at December 31, 2005.  Net income for the three months ended September 30, 2006 was $465,000, or $0.66 per diluted share, an 87.5% increase from $248,000, or $0.35 per diluted share for the three months ended September 30, 2005.  Net income for the nine months ended September 30, 2006 was $1.1 million, or $1.59 per diluted share, a 41.8% increase from $776,000, or $1.09 per diluted share for the nine months ended September 30, 2005.

Coast National Bank opened for business on June 16, 1997.  The Bank is an independent community bank with five banking offices and three loan production offices serving California’s Fresno County, San Luis Obispo County, and Santa Barbara County.  With a focus on delivering unsurpassed customer service, the Bank provides small business loans, home loans and other loans, as well as an array of business and personal banking deposit products and other services. The Bank is a wholly-owned subsidiary of Coast Bancorp, a $180 million bank holding company, headquartered in San Luis Obispo, CA.  Coast Bancorp stock trades under the ticker symbol “CTBP.OB.” For more information, visit www.coastnationalbank.com or call 805.541.0400.

This news release contains forward-looking statements with respect to the financial condition, results of operation and business of Coast Bancorp and its subsidiaries.  All financial results are unaudited and therefore subject to change.  These include, but are not limited to, statements that relate to or are dependent on estimates or assumptions relating to the prospects of loan growth, credit quality and certain operating efficiencies resulting from the operations Coast National Bank.  These forward-looking statements involve certain risks and uncertainties.  Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities:  (1) competitive pressure among financial services companies increases significantly; (2) changes in the interest rate environment on interest margins; (3) general economic conditions, internationally, nationally or in the State of California are less favorable than expected; (4) legislation or regulatory requirements or changes adversely affect the business in which the combined organization will be engaged; (5) finalization of the year-end audit results and (6) other risks detailed in the Coast Bancorp reports filed with the Securities and Exchange Commission.