AmericanWest Announces 48% Increase in Earnings.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)--July 24, 2003 AmericanWest Bancorporation (Nasdaq:AWBC AWBC Australian Wine Brandy Corporation ) today reported that net income for the second quarter of 2003 increased to $3.6 million, or $.38 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, in comparison to $2.4 million, or $.28 per diluted share, from the year-ago period. For the first six months of this year, net income was $6.8 million, or $.72 per diluted share, compared to $5.0 million, or $.56 per diluted share, a year ago. Per-share figures have been adjusted for a 10% stock dividend issued February February: see month. 14, 2003. "We are pleased with our continued improvement during the first half of 2003. We have successfully integrated Latah la·tah n. A nervous disorder characterized by an exaggerated physical response to being startled or to unexpected suggestion. Bancorporation and Bank of Latah, and they continue to be a driving force in our performance. We are striving to improve our performance as we successfully serve our communities," said President and Chief Executive Officer Wes Colley Col´ley n. 1. See Collie. . Total assets at June June: see month. 30, 2003, increased 33% from the year-ago period to $954.8 million from $719.9 million; loans rose 29% to $811.9 million from $631.0 million; and deposits increased 35% to $804.8 million from $596.9 million one year ago. The increase in assets was due, in large part, to the internal growth in the loan portfolio, as well as the acquisition of Latah Bancorporation and its subsidiary, Bank of Latah. Deposit growth was related to the strength of traditional bank deposit products, as well as the Latah acquisition. Net interest income of $13.9 million for the second quarter of 2003 was higher than the $9.9 million net interest income in the second quarter of 2002. Likewise, net interest income for the six months ended June 30, 2003, increased to $26.9 million from $19.4 million for the same period last year. These increases were largely due to the increase in 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 related to internally generated growth, as well as the acquisition of Latah Bancorporation and its subsidiary, Bank of Latah, in the third quarter of 2002. The net interest margin for the first six months of 2003 increased to 6.40% from 6.15% for the same period one year ago. This increase was due to decreases in the cost of funding, which was offset by the decrease in yields on earning assets. Non-interest income increased to $1.6 million for the second quarter of 2003, compared to $1.3 million for the comparable period in 2002. Non-interest income for the first six months of 2003 was $3.1 million, in comparison to $2.3 million for the same period in 2002. These increases were mostly due to the acquisition of Latah Bancorporation and its subsidiary, Bank of Latah, as well as increased service fees and mortgage banking activity. Non-interest expense increased to $8.8 million in the second quarter of 2003 and $17.5 million for the first six months of 2003 from $6.2 million and $12.3 million in the same periods last year. This increase was due primarily to the acquisition of Latah Bancorporation and its subsidiary, Bank of Latah, in the third quarter of 2002, expenses related to Other Real Estate Owned Real Estate Owned Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most , and increased incentive compensation. AWBC's efficiency ratio increased to 58.28% for 2003 compared to 56.55% for the same period in 2002. "We are working to improve productivity and efficiency throughout our organization," said Colley. For the first six months of 2003, AWBC's return on average assets was 1.49% annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. and the return on average equity was 16.21% annualized, compared to 1.44% annualized and 14.14% annualized for the same period one year ago. 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 $22.1 million, or 2.32% of total assets, at June 30, 2003, compared to $18.2 million, or 2.53%, the year before. "We hired a very experienced Special Credit Officer whose sole responsibility is to manage our nonperforming assets and we have developed several action plans to bring these down to an acceptable level," said Wes Colley. The allowance for loan losses was $11.6 million -- equal to 1.41% of total loans at June 30, 2003, as compared to $7.0 million and 1.10% at June 30, 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 $88.7 million. Book value of $9.68 per share and tangible Possessing a physical form that can be touched or felt. Tangible refers to that which can be seen, weighed, measured, or apprehended by the senses. A tangible object is something that is real and substantial. An automobile is an example of tangible Personal Property. book value of $8.03 per share reflects net income and activities related to stock repurchases Stock repurchase A firm's repurchase of outstanding shares of its common stock. . During the quarter, 61,960 shares were repurchased under 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. plan, with an average price of $17.75. AmericanWest Bancorporation is a community bank holding company with a single community bank subsidiary, AmericanWest Bank, which operates 47 offices -- 40 in Central and Eastern Washington
Statements concerning future performance, developments or events, and any other guidance on future periods constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. subject to a number of risks and uncertainties. These include efficiency improvements, increased loan loss reserve, loan and savings product demand, changes in the banking regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. environment, the effect of changing economic conditions throughout the U.S., as well as Eastern and Central Washington Central Washington is a region of the United States defined as the western half of Eastern Washington, or those counties lying east of the Cascade Mountains but west of the 119th meridian. State and Northern Idaho, and other risk factors detailed in the Company's Securities and Exchange Commission filings.
FINANCIAL HIGHLIGHTS
--------------------
(unaudited) (in thousands except per share)
Second Quarter Ended First Half Ended
June 30, June 30,
2003 2002 2003 2002
-------------- --------------
Interest Income $17,583 $13,340 $34,367 $26,326
Interest Expense $ 3,713 $ 3,452 $ 7,456 $ 6,949
Net Interest Income $13,870 $ 9,888 $26,911 $19,377
Provision for Loan Losses $ 1,120 $ 1,272 $ 1,986 $ 2,082
Noninterest Income $ 1,622 $ 1,263 $ 3,067 $ 2,325
Noninterest Expense $ 8,814 $ 6,241 $17,471 $12,273
Income Before Income Tax $ 5,558 $ 3,638 $10,521 $ 7,347
Income Tax $ 1,939 $ 1,197 $ 3,707 $ 2,391
Net Income $ 3,619 $ 2,441 $ 6,814 $ 4,956
Basic Earnings Per Share (a) $ 0.39 $ 0.28 $ 0.75 $ 0.57
Diluted Earnings Per Share (a) $ 0.38 $ 0.28 $ 0.72 $ 0.56
Basic Weighted Average Shares
Outstanding (a) 9,168 8,627 9,085 8,661
Diluted Weighted Average Shares
Outstanding (a) 9,525 8,853 9,494 8,828
BALANCE SHEET
-------------
June 30, 2003 Dec. 31, 2002 June 30, 2002
------------- ------------- -------------
Total Assets $954,757 $916,831 $719,911
Loans $811,895 $764,938 $630,961
Securities $ 39,143 $ 48,173 $ 16,363
Deposits $804,818 $766,335 $596,866
Borrowings $ 54,975 $ 63,696 $ 45,948
Shareholders' Equity $ 88,704 $ 81,130 $ 72,076
Book Value Per Share (a) $ 9.68 $ 9.12 $ 9.20
Tangible Book Value Per
Share (a) $ 8.03 $ 7.41 $ 8.57
FINANCIAL RATIOS: (Annualized)
-----------------
YTD YTD
June 30, 2003 June 30, 2002
------------- -------------
Return on Average Assets 1.49% 1.44%
Return on Average Equity 16.21% 14.14%
Efficiency Ratio 58.28% 56.55%
Operating Expense to Average Assets 3.79% 3.60%
Net Interest Margin to Average Earning Assets 6.40% 6.15%
ALLOWANCE FOR LOAN LOSSES:
--------------------------
($ in thousands, except per share)
June 30, 2003 June 30, 2002
------------- -------------
Balance Beginning of Period $10,272 $ 6,625
Provision for Loan Losses $ 1,986 $ 2,082
Net (Charge Offs)/Recoveries $ (659) $(1,685)
Balance End of Period $11,599 $ 7,022
Allowance for Loan Losses to Total Loans 1.41% 1.10%
Allowance for Loan Loss to Nonperforming Loans 85.84% 57.54%
NONPERFORMING ASSETS:
---------------------
($ in thousands, except per share)
June 30, 2003 Dec. 31, 2002 June 30, 2002
------------- ------------- -------------
Accruing Loans -- 90 days
past due $ 1,089 $ 244 $ 608
Nonaccrual Loans $12,423 $13,315 $11,594
Total Nonperforming Loans $13,512 $13,559 $12,202
Other Real Estate Owned/
Foreclosed Assets $ 8,619 $ 7,873 $ 5,997
Total Nonperforming Assets $22,131 $21,432 $18,199
Total Nonperforming Assets
to Total Assets 2.32% 2.34% 2.53%
(a) All per-share figures have been adjusted for a 10% stock
dividend issued February 14, 2003.
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