SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K 	Annual Report Pursuant to Section 13 or 15(d) of 	the Securities Exchange Act of 1934		 For the fiscal year ended December 31, 1998, Commission file number 0-10658 	BWC FINANCIAL CORP. 	(Exact name of registrant as specified in its charter) California				 	 94-2621001 (State of other jurisdiction of			(I.R.S. Employee incorporation or organization)			Identification No.) 	1400 Civic Drive, Walnut Creek, California 94596 	(Address of principal executive offices) Registrant's telephone number, including area code: (510) 932-5353 Securities registered pursuant to Section 12(b) of the Act: NONE Securities registered pursuant to Section 12(g) of the Act: 	Common Stock, no par value 	(Title of Class) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [ ] State the aggregate market value of the voting stock held by non-affiliates of the registrant, as of March 15, 1999: $35,385,000. Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of March 15, 1999. Title of Class: Common Stock, no par value Shares Outstanding: 2,522,879 Documents Incorporated by Reference*		Incorporated Into: 1998 Annual Report to Shareholders			Part II and IV Definitive Proxy Statement for the 1999		Part III Annual Meeting of Shareholders to be filed by March 22, 1999. * Only selected portions of the document specified are incorporated by reference into this report, as more particularly described herein. TABLE OF CONTENTS PAGE PART I Item 1 Business 1 Item 2 Properties 3 Item 3 Legal Proceedings 3 Item 4 Submissions of Matters to a Vote of Shareholders		3 PART II Item 5 Market for the Registrant's Common Stock and Related Shareholder Matters						4 Item 6 Selected Financial Data 4 Item 7 Management's Discussion and Analysis of Financial Condition and Results of Operations 5 - 12 Item 8 Financial Statements and Supplementary Data 13 Item 9	Changes in and Desagreements with Accountants on Accounting and Financial Disclosure 13 PART III Item 10 Directors and Executive Officers of the Registrant 14 Item 11 Executive Compensation 14 Item 12 Security Ownership of Certain Beneficial Owners and Management 14 Item 13 Certain Relationships and Related Transactions 14 PART IV Item 13 Exhibits, Financial Statement Schedules and Reports on Form 8-K 14 Signatures 15 Index to Exhibits 16 PART I ITEM 1. BUSINESS BWC Financial Corp. ("Corporation") is a bank holding company registered under the Bank Holding Company Act of 1956, as amended. It is a holding company for Bank of Walnut Creek, ("Bank") which was incorporated under the laws of the State of California on November 26, 1979. Its principal office is located at 1400 Civic Drive, Walnut Creek, California 94596, and its telephone number is (925) 932-5353. The Bank has conducted the business of a commercial bank since December 12, 1980. The Bank's primary focus is to engage in wholesale commercial banking, serving small to middle-sized businesses, professionals, high net worth individuals and general retail banking business. Rather than concentrate on any specific industry, the Bank has solicited and attracted customers from a wide variety of light manufacturing, wholesaling, retailing, contracting, real estate development and service businesses, accountants, physicians and dentists. The Bank offers a full range of commercial banking services emphasizing the banking needs of individuals, and the business and professional community in Walnut Creek, California and surrounding areas of Contra Costa County. The Bank accepts checking and savings deposits, makes construction loans, mortgage real estate loans, commercial loans, leases, and installment loans, and offers safe deposit services, including oversize boxes for short-term storage. It sells travelers checks, issues drafts, and offers other customary banking services. The Bank offers its depositors a wide selection of deposit instruments including money market accounts, NOW accounts, and time certificates of deposit. The Bank also offers an auto deposit pick-up service to its professional and business clients. Automatic teller machines are available at all bank locations, 24 hours a day, and are part of the EDS and Cirrus networks with ATM access at locations throughout the United States and Canada. The Bank offers its clients 24 hour telephone access to their accounts through a system called Telebanc, and PC banking access through a system called PCBanc. The Bank operates an SBA (Small Business Administration) lending department, and also has a "Business Credit" department which provides asset based (factoring)loans with assignment of receivable. Both of these areas of the Bank add to the Corporations range of services to its clients. The Corporation also operates, through its subsidiary, BWC Real Estate, a joint venture brokerage service called "BWC Mortgage Services". This brokerage division not only provides long term mortgage placement services for the Bank's construction loan clients but for non-clients seeking long term mortgage financing. The long term financing is placed through the most competitive mortgage investors available in the market. The Bank is not at this time authorized to conduct trust business and has no present intention to apply to regulatory authorities to do so. Although the Bank does not directly offer international banking services, the Bank does make such services available to its customers through other financial institutions with which the Bank has correspondent banking relations. Service Area The primary service area of The Bank and its branches is Contra Costa County and Alameda County with limited lending activity also in Solano County. Walnut Creek, California, is site of the Corporation's main office and the Bank also operates offices in the cities of Orinda, Danville, San Ramon, Pleasanton, Fremont and Livermore California. BWC Financial Corp. has no foreign or international activities or operations. Competition The banking business in the Bank's primary service area, consisting of Contra Costa County, Southern Solano County, and Northern Alameda County, is highly competitive with respect to both loans and deposits. The area is dominated by the major California banks, all of which have multiple branch offices throughout our defined service area. Additionally, there are many thrifts representing most of the major thrift institutions operating in the California market. There are also a number of other independent banks that are a source of competition due to the similarity of the market served. Among the advantages of major banks are their abilities to finance wide- ranging advertising campaigns, to offer certain services (for example, trust services) which are not offered directly by the Bank and to have substantially higher legal lending limits due to their greater capitalizations. In addition to major banks, some of the nation's largest savings and loan associations are located in California and compete for mortgage business along with smaller savings and loan associations. The Bank is in direct competition with all these financial institutions. Management believes the Bank competes successfully with these institutions because of sound management techniques and the flexibility to adjust to changing economic situations. The dedication of founders, directors, and bank personnel has been instrumental in the Bank's ability to compete. The Bank is dedicated to providing personal attention to the financial needs of businesses, professionals, and individuals in its service area. Employees At December 31, 1998, The Bank employed 96 people. At the present time there are no employees directly employed by BWC Financial Corp. or by its mortgage subsidiary BWC Real Estate. There are 25 persons employed by the joint venture BWC Mortgage Services either directly or as independent contractors. Supervision and Regulation As a California state-licensed bank, the Bank is subject to regulation, supervision and periodic examination by the California State Banking Department. The Bank is also subject to regulation, supervision, and periodic examination by the Federal Deposit Insurance Corporation (the "FDIC"). The Bank is not a member of the Federal Reserve System, but is nevertheless subject to certain regulations of the Board of Governors of the Federal Reserve System. As a state bank, the Bank's deposits are insured by the FDIC to the maximum amount permitted by law, which is currently $100,000. The regulations of those state and federal bank regulatory agencies govern most aspects of the Bank's business and operations, including, but not limited to, requiring the maintenance of non-interest bearing reserves on deposits, limiting the nature and amount of investments and loans which may be made, regulating the issuance of securities, restricting the payment of dividends, regulating bank expansion and bank activities, including real estate development activities and determining characteristics of certain deposit accounts. ITEM 2. PROPERTIES The principal office of the Bank is located at 1400 Civic Drive, in the financial district of downtown Walnut Creek. The Bank opened for business on December 12, 1980 and its premises are located in a modern building of which the Bank has leased approximately 11,917 square feet. BWC Financial Corp. shares common quarters with The Bank in its principal office. On September 24, 1982, a branch office was opened at 224 Brookwood Road, Orinda, California serving the Orinda area. The premises are located in a new facility which was constructed on this site in 1994 with 2,186 square feet of office space. On November 12, 1985, a branch office was opened at 3130 Crow Canyon Place, San Ramon, California serving the San Ramon area. The premises are located in a modern building of which the Bank has leased approximately 3,375 square feet of office space. On June 8, 1990, a branch office was opened at 424 Hartz Avenue, Danville, California serving the Danville area. The premises are located in a modern building comprising 2,263 square feet of office space. On April 15, 1994 a branch office was opened at 249 Main Street, Pleasanton, California serving the Pleasanton area. The premises are located in a single building containing 3,880 square feet of office space. On June 15, 1996 a branch office was opened at 4030 Clipper Court, Fremont, California serving the Fremont area. The premises are located in an office park where the Bank leased 2,240 square feet of office space. A full service charter was approved, however, at this time the facility is being used for the development of loans to the surrounding business community. On November 9, 1998 a branch office was opened at 1770 First Street in Livermore, California serving the Livermore area. The premises are located in a building comprising 1,100 square feet of office space. This is a temporary location and a more permanent facility is being sought. ITEM 3. LEGAL PROCEEDINGS At this time there are no pending or threatened legal proceedings to which the Corporation is a party or to which any of the Corporation's properties are subject. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SHAREHOLDERS None PART II ITEM 5. MARKET FOR THE REGISTRANT'S COMMON STOCK AND RELATED SHAREHOLDER MATTERS. The information required to be furnished pursuant to this item is set forth under the caption "Common Stock Prices" on page 35 of the Corporation's 1998 Annual Report to Shareholders and is incorporated herein by reference. ITEM 6. SELECTED FINANCIAL DATA The information required to be furnished pursuant to this item is set forth under the caption "Management's Discussion and Analysis of Operations" on page 31 of the Corporation's 1998 Annual Report to Shareholders and is incorporated herein by reference. ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS <FN> For management's discussion and analysis of financial condition and results of operations, see "Management's Discussion and Analysis of Operations" at pages 31 through 36 of the 1998 Annual Report to Shareholders which is incorporated herein by reference. The following statistical disclosures should be read in conjunction with the consolidated financial statements and notes thereto of the 1998 Annual Report to Shareholders which is incorporated herein by reference. The following is an analysis of net interest earnings for the years ended December 31. </FN> EARNING ASSETS 1998 1997 Interest Rates Interest Rates Average Income/ Earned/ Average Income/ Earned/ Balance Expense Paid (1) Balance Expense Paid (1) Federal Funds Sold $7,825,000 $421,383 5.39% $6,867,000 $382,901 5.58% Other Short Term Investments 4,075,000 218,448 5.36 881,000 48,124 5.46 Investment Securities: U.S. Treasury Securities 10,617,000 636,752 6.00 8,930,000 548,267 6.14 Securities of U.S. Government Agencies 21,919,000 1,333,073 6.08 8,653,000 561,987 6.49 Obligations of States & Political Subdivisions (2) 21,968,000 1,180,327 6.55 12,408,000 667,707 7.01 Other Securities 910,000 51,987 5.71 Loans (3) (4) (5) 166,697,000 18,020,067 10.81 149,043,000 16,107,013 10.81 TOTAL EARNING ASSETS $234,011,000 $21,862,037 9.45% $186,782,000 $18,315,999 9.91% NONEARNING ASSETS 14,105,000 13,380,000 TOTAL $248,116,000 $200,162,000 ITEM 7. (continued) LIABILITIES AND SHAREHOLDERS' EQUITY 1998 1997 Interest Rates Interest Rates Average Income/ Earned/ Average Income/ Earned/ Balance Expense Paid (1) Balance Expense Paid (1) INTEREST-BEARING DEPOSITS: Savings and NOW Accounts $32,522,000 $535,932 1.65% $26,410,000 $436,867 1.65% Money Market Accounts 61,706,000 2,466,753 4.00 37,899,000 1,409,812 3.72 Time 70,534,000 3,767,981 5.34 69,874,000 3,919,781 5.61 TOTAL 164,762,000 6,770,666 4.11 134,183,000 5,766,460 4.30 Funds Purchased 85,000 3,792 4.46 69,000 3,377 4.92 TOTAL INTEREST-BEARING DEPOSITS AND BORROWINGS $164,847,000 $6,774,458 4.11 $134,252,000 $5,769,837 4.30 NONINTEREST-BEARING DEPOSITS 59,098,000 -- 47,081,000 -- OTHER LIABILITIES 2,248,000 -- 1,062,000 -- SHAREHOLDERS' EQUITY 21,923,000 -- 17,767,000 -- TOTAL $248,116,000 $200,162,000 NET INTEREST INCOME AND NET INTEREST MARGIN ON AVERAGE EARNING ASSETS $15,087,579 6.56% $12,546,162 6.82% <FN> (1) Minor rate differences from a straight division of interest by average assets are due to the rounding of average balances. (2) Amounts calculated on a fully Tax-Equivalent Basis where appropriate (1998 and 1997 Federal Statutory Rate - 34%). (3) Nonaccrual loans of $2,176,000 and $248,000 as of December 31, 1998 and 1997 have been included in the average loan balance. Interest income is included on nonaccrual loans only to the extent to which cash payments have been received. (4) Average loans are net of average deferred loan origination fees of $859,000 and $993,000 in 1998 and 1997 respectively. (5) Loan interest income includes loan origination fees of $1,657,000 and $1,383,000 in 1998 and 1997 respectively. </FN> Change in Interest and Expense Due to Volume Change and Rate Change The following table provides pertinent information about interest income and expense between the years 1998 and 1997, and between the years 1997 and 1996. The change resulting primarily from growth in each asset or liability category is expressed as a volume change. The change resulting primarily from changes in rates is expressed as a rate change. The change attributed to both rate and volume is allocated equally between both rate and volume changes. During 1998 total interest income increased $3,546,000 over 1997. Of this increase, 95% was related to the increase in the volume of average earning assets in 1998 as compared to 1997 and 5% was related to interest rates. During 1998 total interest expense increased $1,004,000 over 1997. Of this increase, 105% was due to the growth in interest bearing deposits between the respective periods and -5% was due to lower interest rates. Based on the above factors affecting interest income and interest expense, net interest income increased $2,542,000 during 1998 as compared to 1997. During 1997 total interest income increased $5,078,000 from 1996. Of this increase, 87% or $4,418,000 was related to the increase in the volume of average earning assets in 1997 as compared to 1996. Based on rates alone the increase in interest income would have been 13% or $681,000, given constant volume levels between the respective periods. During 1997 total interest expense increased $2,005,000 from 1996. As with interest income, 80% or $1,604,000 of the increase was attributed to the growth in interest bearing deposits between the respective periods. Based on rates alone the increase in interest expense would have been 20% or $411,000, given constant volume levels between the respective periods. Based on a combination of the above factors affecting interest income and interest expense, net interest income increased $3,072,000 during 1997 as compared to 1996 Of this increase, 91% was related to volume increases and only 9% due to rate changes between the respective periods. ANALYSIS OF CHANGES IN INTEREST INCOME AND EXPENSES 1998 over 1997 1997 over 1996 Volume Rate Total Volume Rate Total Increases (Decreases) in Interest Income Federal Funds Sold $52,000 ($14,000) $38,000 $216,000 $13,000 $229,000 Other Short Term Investments 173,000 (2,000) 171,000 29,000 1,000 30,000 Investment Securities: U.S. Treasury Securities 102,000 (14,000) 88,000 154,000 (3,000) 151,000 Secutities of U.S. Government Agencies 834,000 (63,000) 771,000 263,000 9,000 272,000 Obligations of State and Political subdivisions (1) 551,000 (38,000) 513,000 (114,000) 7,000 (107,000) Corporate Debit Securities 26,000 26,000 52,000 -- -- -- Loans 1,615,000 298,000 1,913,000 3,849,000 654,000 4,503,000 Total Increase $3,353,000 $193,000 $3,546,000 $4,397,000 $681,000 $5,078,000 Increase (Decrease) in Interest Expense Deposits: Savings and NOW Accounts $102,000 ($3,000) $99,000 $48,000 $7,000 $55,000 Money Market Accounts 919,000 138,000 1,057,000 241,000 290,000 531,000 Time Deposits 32,000 (184,000) (152,000) 1,318,000 114,000 1,432,000 Federal Funds Purchases 1,000 (1,000) -- (13,000) -- (13,000) Total Increase (Decrease) $1,054,000 ($50,000)$1,004,000 $1,594,000 $411,000 $2,005,000 Increase in Net Interest Income $2,299,000 $243,000 $2,542,000 $2,803,000 $270,000 $3,073,000 <FN> (1) Amounts calculated on a fully taxable equivalent basis where appropriate. </FN> INVESTMENT SECURITIES <FN> Information regarding the book value of investment securities as of December 31, 1998 and 1997 is set forth in Note 2 on Page 14 of the Corporation's 1998 Annual Report to Shareholders and is incorporated herein by reference. The following table is a summary of the relative maturities and yields on the Bank's investment securities as of December 31, 1998. Yields have been computed by dividing annual interest income, adjusted for amortization of premium and accretion of discount, by book values of the related securities. </FN> Maturing After One but Within Within one Year Five Years Over Five Years Total Amount Yield Amount Yield Amount Yield Amount Yield U.S. Treasury Securities $4,588,000 6.03% $3,074,000 6.02% -- -- $7,662,000 6.03% Obligations of U.S. Government Agencies -- -- 10,401,000 6.04 11,964,000 7.29 22,365,000 6.23 Obligations of State and Political Subdivisions: Tax-exempt* 2,355,000 6.93 3,638,000 6.21 7,599,000 6.12 13,592,000 6.30 Taxable 719,000 6.17 8,655,000 6.13 2,459,000 6.09 11,833,000 6.13 Other Securities -- -- 2,268,000 6.26 1,527,000 6.26 3,795,000 6.26 TOTAL $7,662,000 6.32% $28,036,000 6.11% $23,549,000 6.72% $59,247,000 6.20% <FN> * Interest is exempt from Federal Income Taxes. </FN> LOAN PORTFOLIO <FN> Information regarding the loan portfolio of the Corporation as of December 31, 1998 and 1997 is set forth in Note 3 on page 15 of the Corporation's 1998 Annual Report to Shareholders and is incorporated herein by reference. Maturity Distribution and Interest Rate Sensitivity of Loans The following table shows the maturity distribution and interest rate sensitivity of loans of the Corporation on December 31, 1998. </FN> LOANS WITH A MATURITY OF One Year One to After Five or Less Five Years Years Total Real Estate Construction $68,743,000 $311,000 -- $69,054,000 Commercial 37,054,000 $12,105,000 $15,102,000 64,261,000 Installment 4,047,000 8,461,000 $19,621,000 32,129,000 Real Estate Mortgages 3,711,000 4,641,000 13,181,000 21,533,000 TOTAL $113,555,000 $25,518,000 $47,904,000 $186,977,000 Loans with Fixed Interest Rates $3,297,000 $3,861,000 $909,000 $8,067,000 Loans with Floating Interest Rates 178,910,000 -- -- 178,910,000 TOTAL $182,207,000 $3,861,000 $909,000 $186,977,000 ALLOWANCE FOR CREDIT LOSSES <FN> Information regarding the analysis of the allowance for credit losses of the Corporation for the years ended December 31, 1998, 1997 and 1996 is set forth in Note 4 on page 16 of the Corporation's 1998 Annual Report to Shareholders and is incorporated herein by reference. Allocation of allowance for credit losses is based upon estimates of potential credit losses and is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. The allowance is increased by provisions charged to expense and reduced by net charge-offs. Management continually evaluates the economic climate and other conditions to determine the adequacy of the allowance. Ultimate losses may vary from current estimates. </FN> 1998 1997 Allocation Loans As A Allocation Loans As A of Allowance Percent Of of Allowance Percent Of Type of Loan Balance Total Loans Balance Total Loans Real Estate Construction $952,000 36.93% $630,000 27.69% Commercial 1,113,000 34.37 811,000 34.50 Installment 333,000 17.18 319,000 22.47 Real Estate Mortgages 55,000 11.52 64,000 15.34 Unallocated 1,466,000 -- 1,112,000 -- TOTAL $3,919,000 100.00% $2,936,000 100.00% <FN> BWC Financial Corp. believes that any breakdown or allocation of the allowance into loan categories lends an appearance of exactness which does not exist, in that the allowance is utilized as a single unallocated reserve available for all loans and commitments to extend credit. The allowance breakdown shown above should not be interpreted as an indication of the specific amount or specific loan categories in which future charge-offs may ultimately occur. </FN> DEPOSITS The following table shows daily average balances for the various classifications of deposits for the periods indicated. For the Year Ended December 31 1998 1997 Average Average Balance Rates Balance Rates Noninterest-Bearing Demand $60,439,000 -- $47,081,000 -- Savings and NOW Accounts 32,522,000 1.65% 26,410,000 1.65% Money Market Accounts 61,706,000 4.00 37,899,000 3.72 Time Deposits 70,534,000 5.34 69,875,000 5.61 Total Deposits $225,201,000 3.01% $181,265,000 3.18% FINANCIAL RATIOS The following table shows key financial ratios for the Corporation for the years indicated. Year Ended December 31, 1998 1997 Return on average assets 1.70% 1.46% Return on average shareholders' equity 19.29% 16.46% Cash dividend payout ratio 0.00% 0.00% Average shareholders' equity as % of: Average total assets 8.84% 8.87% Average total deposits 9.73% 9.80% ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA The information required to be furnished in this item is set forth in the Consolidated Financial Statements on pages 8 through 27 of the Corporation's 1998 Annual Report to Shareholders and is incorporated herein by reference. ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING 	 AND FINANCIAL DISCLOSURE None PART III Pursuant to General Instruction G(3), the information in Items 10, 11, 12 and 13 of Part III is furnished by way of incorporation by reference to those sections of the Registrant's Proxy Statement for the 1999 Annual Meeting of Shareholders which contain the information required by Items 401, 402, 403, 404 and 405 of Regulation S-K. The Registrant intends to file a definitive copy of such Proxy Statement, pursuant to Regulation 14A, by March 20, 1999. PART IV ITEM 13. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K. (A)	Documents Filed as Part of this Report 	1. Financial Statements 	The consolidated financial statements of BWC Financial Corp. and subsidiary listed below and appearing at the indicated page number in BWC's 1998 Annual Report to Shareholders are incorporated by reference into this report. BWC FINANCIAL CORP. AND SUBSIDIARIES Page Number* Independent Public Accountants' Report for the years ended December 31, 1998 and 1997 is filed herewith 29 Consolidated Balance Sheets as of December 31, 1998 and 1997		 8 Consolidated Statements of Income for the years ended December 31, 1998, 1997 and 1996							 9 Consolidated Statements of Shareholders' Equity for the years ended December 31, 1998, 1997 and 1996 10 Consolidated Statements of Cash Flows for the years ended December 31, 1998, 1997 and 1996							11 Notes to Consolidated Financial Statements 12 - 27 	2. Financial Statement Schedules 	All financial statement schedules have been omitted, as they are inapplicable or the required information is included in the consolidated financial statements or notes thereto. (B)	Reports on Form 8-K No reports on form 8-K were filed by BWC Financial Corp. during the fourth quarter of 1998. (C)	Exhibits Filed: See Index to Exhibits at page 16 of this Form 10-K. *Refers to page number in the 1998 Annual Report to Shareholders. SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. BWC FINANCIAL CORP. 	By 	Leland E. Wines 	Executive Vice President and Chief Financial Officer Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the date indicated. Signature	 Title	 Date James L. Ryan March 23, 1999 	Chairman of the Board ________________ James L. Ryan	and Director Leland E. Wines March 23, 1999 	Executive Vice President and ________________ Leland E. Wines	Chief Financial Officer 	 Tom Mantor March 23, 1999 	Director ________________ Tom Mantor Richard G. Hill March 23, 1999 	Director ________________ Richard G. Hill Reynold C. Johnson III March 23, 1999 	Director ________________ Reynold C. Johnson III Craig Lazzareschi March 23, 1999 	Director ________________ Craig Lazzareschi John F. Nohr March 23, 1999 	Director ________________ John F. Nohr John L. Winther March 23, 1999 	Director ________________ John L. Winther 	INDEX TO EXHIBITS EXHIBIT EXHIBIT NUMBER Articles of Incorporation and Amendments Refer to 10K filing of March, 1994. By-Laws Refer to 10K filing of March, 1994. 1998 Annual Report to Shareholders 13.1 Consents of Independent Public Accountants: 	Arthur Andersen LLP Consent dated February 22, 1999		24.1 Report of Independent Public Accountants: 	Arthur Andersen LLP Report dated February 22, 1999		25.1 ARTHUR ANDERSEN LLP CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS As independent public accountants, we hereby consent to the incorporation by reference in this Form 10-K and the previously filed registration statement of BWC Financial Corp. on Form S-8 (File No. 33-22290) of our report dated February 22, 1999, in BWC Financial Corp.'s 1998 Annual Report. It should be noted that we have not audited any financial statements of BWC Financial Corp. subsequent to December 31, 1998, or performed any audit procedures subsequent to the date of our report. Arthur Andersen LLP San Francisco, California, February 22, 1999 ARTHUR ANDERSEN LLP REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS To the Shareholders and Board of Directors of BWC Financial Corp.: We have audited the accompanying consolidated balance sheets of BWC Financial Corp. (a California corporation) and Subsidiaries as of December 31, 1998 and 1997, and the related consolidated statements of income, changes in shareholders' equity and cash flows for each of the three years in the period ended December 31, 1998. These consolidated financial statements are the responsibility of the Corporation's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement ; presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of BWC Financial Corp. and Subsidiaries as of December 31, 1998 and 1997, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 1998, in conformity with generally accepted accounting principles. Arthur Andersen LLP San Francisco, California, February 22, 1999