AmericanWest's First Quarter Net Income Reflects 38% Growth Over First Quarter of 2001.Business Editors SPOKANE Spokane, city, United States Spokane (spōkăn`), city (1990 pop. 177,196), seat of Spokane co., E Wash., at the spectacular falls of the Spokane River; inc. 1881. , Wash.--(BUSINESS WIRE)--April 18, 2002 AmericanWest Bancorporation (Nasdaq:AWBC AWBC Australian Wine Brandy Corporation ) today announced that net income for the first quarter of 2002 increased 38% from the year ago period to $2.5 million or $.31 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. Per share figures have been adjusted for a 10% stock dividend issued February February: see month. 1, 2002. Total assets increased 12% from the year ago period to $695.5 million, loans grew 19% to $608.7 million, and deposits increased nearly 12% to $579.4 million. The net interest margin rose to 6.18% in the first quarter of 2002 from 5.66% one year ago. The cost of interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid liabilities has declined significantly from 5.02% in 2001 to 2.82% in 2002, while earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin have declined from 9.72% to 8.46%. Total nonperforming assets Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. increased to $16.4 million or 2.36% of total assets in the first quarter of 2002 compared to $10.2 million or 1.63% the year before. "The majority of the nonperforming assets involve six borrowers with borrowings totaling $12.3 million," said Wes Colley Col´ley n. 1. See Collie. , President & Chief Executive Officer. "We are secured on a $4 million retail/office complex and $5 million on two ice skating ice skating, gliding along an ice surface on keellike runners known as ice skates. Skating as a Sport Skating, besides being an important form of winter recreation and the essential skill in the game of ice hockey (see hockey, ice) has developed complexes, all in Spokane. Two apple orchards, each with $1 million owing in the Yakima Yakima, city, United States Yakima (yăk`əmô, –mə), city (1990 pop. 54,827), seat of Yakima co., S central Wash., on the Yakima River just below its confluence with the Naches; inc. 1886. area, should have no further loss. The sixth loan is also in Yakima for $1.3 million on a nursery nursery, in horticulture, an establishment or area for the propagation, breeding, and early cultivation of plants. In North America the term nursery originally specified a place where hardy woody plants, especially fruit trees, were started; but as the market and commercial real estate." The allowance for loan losses was $6.4 million -- equal to 1.05% of total loans and 42.62% of nonperforming loans at March 31, 2002. Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. rose to $69.8 million. Book value of $8.89 per share and tangible book value of $8.31 per share reflects earnings growth and stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. expense. "The current stock repurchase program authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of 739,841 shares. Approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 312,424 shares have been repurchased," said Colley. Net interest income of $9.49 million was higher than the $7.76 million net interest income in last year's first quarter. The increase is attributed to the increase in average loan volume to $598 million from $500 million a year ago and the significant drop in the cost of interest-bearing liabilities. Net interest income, after provision for loan losses, was $8.7 million for the first quarter of 2002, compared to $7.3 million in the first quarter of 2001, despite the 92% increase in provision for loan losses. Noninterest income was lower at $1.1 million compared to $1.3 million one year ago. First quarter last year added an additional $0.2 million, which included income from the former insurance subsidiary and a gain on the sale of the investment in a credit card company. Noninterest expense increased slightly to $6.0 million in the first quarter of 2002 from $5.9 million in the year ago period, due primarily to the incentive driven loan officer bonus program. Founded in 1983, AmericanWest Bancorporation is a regional community bank holding company with 32 branch offices -- 31 in Central and Eastern Washington
FINANCIAL HIGHLIGHTS
---------------------------------------------
(unaudited) ($ in thousands except per share)
First Quarter Ended
March 31,
2002 2001
-------------------------
Interest Income $12,986 $13,319
Interest Expense $3,497 $5,561
Net Interest Income $9,489 $7,758
Provision for Loan Losses $810 $421
Noninterest Income $1,062 $1,251
Noninterest Expense $6,032 $5,861
Income Before Income Tax $3,709 $2,727
Income Tax $1,194 $907
Net Income $2,515 $1,820
Basic Earnings Per Share(a) $0.32 $0.22
Diluted Earnings Per Share(a) $0.31 $0.21
Basic Weighted Average Shares Outstanding(a) 7,904,009 8,429,012
Diluted Weighted Average Shares
Outstanding(a) 8,003,117 8,502,078
BALANCE SHEET
-------------
March 31, Dec. 31, March 31,
2002 2001 2001
---------------------------------
Total Assets $695,464 $659,341 $623,629
Loans $608,717 $587,523 $512,700
Deposits $579,417 $532,237 $517,863
Borrowings $40,845 $53,601 $35,325
Shareholders' Equity $69,778 $68,206 $65,821
Book Value Per Share(a) $8.89 $8.63 $7.86
Tangible Book Value Per Share(a) $8.31 $8.05 $7.29
FINANCIAL RATIOS: (Annualized)
------------------------------
March 31, Dec. 31, March 31,
2002 2001 2001
---------------------------------
Return on Average Assets 1.52% 1.46% 1.22%
Return On Average Assets with
nonrecurring items(b) 1.52% 1.42% 1.22%
Return on Average Equity 14.74% 13.87% 11.31%
Return on Average Equity without
nonrecurring items(b) 14.74% 13.48% 11.31%
Efficiency Ratio 57.17% 57.21% 65.09%
Efficiency Ratio without
nonrecurring items(b) 57.17% 57.79% 65.09%
Operating Expense to Average Assets 3.64% 3.54% 3.91%
Net Interest Margin to Average
Earning Assets 6.18% 5.95% 5.66%
Average Equity to Average Assets 10.29% 10.54% 10.75%
Equity to Assets Ratio 10.03% 10.34% 10.55%
ALLOWANCE FOR LOAN LOSSES:
---------------------------------
($ in thousands, except per share)
March 31, Dec. 31, March 31,
2002 2001 2001
---------------------------------
Balance Beginning of Period $6,624 $4,948 $4,948
Provision for Loan Losses $810 $2,855 $421
Net (Charge Offs)/Recoveries $(1,054) $(1,179) $(93)
Balance End of Period $6,380 $6,624 $5,276
Allowance for Loan Losses to
Total Loans 1.05% 1.13% 1.03%
Allowance for Loan Loss to
Nonperforming Loans 42.62% 50.12% 60.97%
NONPERFORMING ASSETS:
---------------------------------
($ in thousands, except per share)
March 31, Dec. 31, March 31,
2002 2001 2001
---------------------------------
Accruing Loans -- 90 days past due $2,319 $2,193 $887
Nonaccrual Loans $12,651 $11,023 $7,767
Total Nonperforming Loans $14,970 $13,216 $8,654
Other Real Estate Owned/Foreclosed
Assets $1,427 $1,616 $1,542
Total Nonperforming Assets $16,397 $14,832 $10,196
Total Nonperforming Assets to
Total Assets 2.36% 2.25% 1.63%
(a) All per share figures have been adjusted for a 10% stock
dividend issued February 1, 2002.
(b) In 2001 AmericanWest Bancorporation had nonrecurring income
from the sale of its insurance agency.
Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: Statements in this news release looking forward in time involve risks and uncertainties, including success in integrating subsidiaries, consolidation of back office functions, the effect of changing economic conditions, trends in the interest rate market, and other risk factors detailed in the company's Securities and Exchange Commission filings. |
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