AmericanWest Announces Record 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)--April 24, 2003 AmericanWest Bancorporation (Nasdaq:AWBC AWBC Australian Wine Brandy Corporation ) today announced that net income for the first quarter of 2003 increased 28% from the year ago period to $3.2 million or $.34 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. 14, 2003. Total assets increased 32% from the year ago period to $917.6 million, loans grew 29% to $777.6 million, and deposits increased 32% to $766.0 million. The net interest margin remained stable at 6.20% in the first quarter of 2003 from 6.18% one year ago. On March 19, 2003 the Bank of Latah la·tah n. A nervous disorder characterized by an exaggerated physical response to being startled or to unexpected suggestion. subsidiary was merged with the AmericanWest Bank subsidiary, with AmericanWest Bank being the survivor bank. "This consolidation completes the integration of the Latah Bancorporation acquisition which began in the third quarter of 2002. We are looking forward to their continued excellent performance in the future as part of the AmericanWest Bank team," said Wes Colley Col´ley n. 1. See Collie. , President & Chief Executive Officer. 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 $21.2 million or 2.31% of total assets in the first quarter of 2003 compared to $16.4 million or 2.36% the year before. However, the total decreased slightly from quarter end December December: see month. 31, 2002. "We continue to take action in managing our nonperforming assets and have several action plans in place to bring these down to an acceptable level," said Colley. "We are well secured on a $4 million retail/office complex near downtown Spokane Downtown Spokane is the central business district in Spokane. Downtown Spokane's rough boundaries are I-90 to the south, Division St. to the east, Maple St. to the west, and the Spokane River to the north, although one could argue that downtown has extended north of the river. . The bank owns two ice rinks -- one of which is being actively marketed as a commercial building. The other is operating as an ice rink and is expected to show a profit in the upcoming year. These total $4.7 million. Two apple orchards, totaling $1.5 million, are being liquidated DAMAGES, LIQUIDATED, contracts. When the parties to a contract stipulate for the payment of a certain sum, as a satisfaction fixed and agreed upon by them, for the not doing of certain things particularly mentioned in the agreement, the sum so fixed upon is called liquidated damages. (q.v. . Another loan is 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 in 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. for $1.3 million. We have ownership of the properties and are liquidating inventory and marketing the real property. We are continuing to market these nonperforming assets and believe that we will make substantial strides in reducing our overall nonperforming credits," said Colley. The total loan loss reserve balance at the end of the first quarter was $10.9 million -- equal to 1.38% of total loans and 83.86% of nonperforming loans at March 31, 2003, an improvement from 1.33% and 75.76% at December 31, 2002 and 1.05% and 42.62% at March 31, 2002. Shareholder equity rose to $85.8 million. Book value of $9.37 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 $7.72 per share reflects earnings growth and stock options exercised. Net interest income of $13.04 million was higher than the $9.49 million net interest income in last year's first quarter. The increase is attributed to the increase in average loan volume from a year ago and the significant drop in the cost of interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid liabilities, as well as the acquisition of Latah Bancorporation. Noninterest income increased to $1.5 million compared to $1.1 million one year ago, primarily due to the acquisition of Latah Bancorporation. Noninterest expense increased to $8.7 million in the first quarter of 2003 from $6.0 million in the year ago period, primarily due to the acquisition of Latah Bancorporation and increased incentive compensation costs. AmericanWest Bancorporation is a community bank holding company with a single community bank subsidiary, AmericanWest Bank, which operates 47 offices -- 40 in Central and Eastern Washington
Statements concerning future performance, developments or events, and any other guidance on future periods constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. subject to a number of risks and uncertainties. These include efficiency improvements, increased loan loss reserve, loan and savings product demand, changes in the banking regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. environment, the effect of changing economic conditions throughout the U.S., as well as Eastern and Central Washington Central Washington is a region of the United States defined as the western half of Eastern Washington, or those counties lying east of the Cascade Mountains but west of the 119th meridian. State and Northern Idaho, and other risk factors detailed in the Company's Securities and Exchange Commission filings.
FINANCIAL HIGHLIGHTS
--------------------
(unaudited)
($ in thousands except per share)
Quarter Ended
March 31, December 31, March 31,
2003 2002 2002
----------- ------------ -----------
Interest Income $16,785 $16,912 $12,986
Interest Expense $3,743 $4,162 $3,497
Net Interest Income $13,042 $12,750 $9,489
Provision for Loan Losses $866 $1,843 $810
Noninterest Income $1,444 $1,585 $1,062
Noninterest Expense $8,657 $8,021 $6,032
Income Before Income Tax $4,963 $4,471 $3,709
Income Tax $1,752 $1,559 $1,194
Net Income $3,211 $2,912 $2,515
Basic Earnings Per Share(a) $0.35 $0.33 $0.29
Diluted Earnings Per Share(a) $0.34 $0.31 $0.29
Basic Weighted Average Shares
Outstanding(a) 9,100,296 8,872,527 8,694,410
Diluted Weighted Average Shares
Outstanding(a) 9,463,122 9,357,296 8,803,429
BALANCE SHEET March 31, December 31, March 31,
------------- 2003 2002 2002
----------- ------------ -----------
Total Assets $917,621 $916,831 $695,464
Loans $777,623 $764,938 $602,337
Securities $39,699 $48,173 $14,085
Deposits $765,977 $766,335 $579,417
Borrowings $59,319 $63,696 $40,845
Shareholders' Equity $85,793 $81,130 $69,778
Book Value Per Share(a) $9.37 $9.12 $8.08
Tangible Book Value Per Share(a) $7.72 $7.41 $7.51
FINANCIAL RATIOS: (Annualized) March 31, December 31, March 31,
----------------- 2003 2002 2002
----------- ------------ -----------
Return on Average Assets 1.41% 1.41% 1.52%
Return on Average Equity 15.67% 14.64% 14.74%
Efficiency Ratio 59.76% 55.95% 57.17%
Operating Expense to Average
Assets 3.74% 3.51% 3.64%
Net Interest Margin to Average
Earning Assets 6.20% 6.13% 6.18%
ALLOWANCE FOR LOAN LOSSES:
--------------------------
($ in thousands, except per March 31, December 31, March 31,
share) 2003 2002 2002
----------- ------------ -----------
Balance Beginning of Period $10,272 $9,006 $6,624
Provision for Loan Losses $866 $1,843 $810
Net (Charge Offs)/Recoveries $(266) $(577) $(1,054)
Balance End of Period $10,872 $10,272 $6,380
Allowance for Loan Losses to
Total Loans 1.38% 1.33% 1.05%
Allowance for Loan Loss to
Nonperforming Loans 83.86% 75.76% 42.62%
NONPERFORMING ASSETS:
---------------------
($ in thousands, except per March 31, December 31, March 31,
share) 2003 2002 2002
----------- ------------ -----------
Accruing Loans - 90 days past due $222 $244 $2,319
Nonaccrual Loans $12,742 $13,315 $12,651
Total Nonperforming Loans $12,964 $13,559 $14,970
Other Real Estate
Owned/Foreclosed Assets $8,203 $7,873 $1,427
Total Nonperforming Assets $21,167 $21,432 $16,397
Total Nonperforming Assets to
Total Assets 2.31% 2.34% 2.36%
(a) All per share figures have been adjusted for a 10% stock
dividend issued February 14, 2003.
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