AmericanWest Bancorp Completes Record Year.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)--Jan. 29, 2003 AmericanWest Bancorporation (Nasdaq:AWBC AWBC Australian Wine Brandy Corporation ) today reported record net income of $10.9 million or $1.33 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 2002. For 2001 net income, excluding a nonrecurring Non`re`cur´ring a. 1. Nonrecurrent; as, the costs of a layoff are considered as a nonrecurring expense s>. gain of $392,000 from the sale of the Company's insurance agency subsidiary, was $8.9 million, or $1.08 per diluted share. For the fourth quarter of 2002, AWBC's net income was $2.9 million, or $.34 per diluted share. In the fourth quarter of 2001, net income without nonrecurring events was $2.8 million, or $.35 per diluted share. The Bancorporation's fourth quarter net interest income increased to $12.8 million from $9.4 million the year before. "AWBC's corporate efficiency ratio improved to 55.71% compared to 57.21% in 2001," said Wes Colley Col´ley n. 1. See Collie. , President & Chief Executive Officer. "We continue to consolidate Consolidate To combine the assets, liabilities, and other financial items of two or more entities into one. Notes: This term is generally used in the context of consolidated financial statements. 'back room' operations to improve productivity and efficiency throughout our organization." As a result of internally generated growth and the acquisition of Bank of Latah la·tah n. A nervous disorder characterized by an exaggerated physical response to being startled or to unexpected suggestion. on July July: see month. 31, 2002, assets advanced to $916.8 million; deposits were $766.3 million; and loans were $764.9 million at December December: see month. 31, 2002. This compares to assets of $659.3 million, deposits of $532.2 million and loans of $587.5 million the year before. 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 $21.4 million, or 2.34% of total assets in 2002, compared to $14.8 million, or 2.25% of total assets in 2001. "The majority of the nonperforming assets involve six borrowers with borrowings totaling $12.3 million," said Wes 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. and 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. Both ice rinks are now in the bank's Other Real Estate account and total $4.8 million. We are actively marketing both properties and anticipate a resolution with no additional losses. 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 have been charged down and are being marketed, with no further loss anticipated. 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. At this time, we expect no further loss. We continue to monitor nonperforming assets closely and take remedial action A remedial action is a change made to a nonconforming product or service to address the deficiency. Rework and repair are generally the remedial actions taken on products, while services usually require additional services to be performed to ensure satisfaction. as quickly as possible. An additional $1.8 million was added to the allowance for loan losses this quarter. The total loan loss reserve balance at the end of the year was $10.3 million -- equal to 1.32% of total loans, compared to $6.6 million or 1.13% of total loans as of December 31, 2001," said Colley. Shareholder equity rose nearly 19% to $81.1 million at December 31, 2002 compared to $68.2 million at the end of 2001. In 2002, AWBC repurchased 249,359 shares for $3.2 million. For all of 2002, return on average assets (ROA ROA See: Return on assets ROA See: Right of accumulation ROA See return on assets (ROA). ) was 1.41%. Return on average equity (ROE A fictitious surname used for an unknown or anonymous person or for a hypothetical person in an illustration. A lawsuit is generally named for the persons who are parties to it. ) was 15.08% in 2002. On July 31, 2002 AWBC completed the acquisition of Latah Bancorporation and its subsidiary, Bank of Latah. Bank of Latah operates 8 branches in Northern Idaho Idaho (ī`dəhō), one of the Rocky Mt. states in the NW United States. It is bordered by Montana and Wyoming (E), Utah and Nevada (S), Oregon and Washington (W), and the Canadian province of British Columbia (N). and Eastern Washington
AmericanWest Bancorporation is a community bank holding company with 42 branch offices -- 36 in Central and Eastern Washington and 6 in Northern Idaho. 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 other risk factors detailed in the Company's Securities and Exchange Commission filings.
FINANCIAL HIGHLIGHTS Fourth Quarter Ended Year Ended
(unaudited) December 31, December31,
($ in thousands
except per share)
2002 2001 2002 2001
---------------------- -----------------------
Interest Income $ 16,912 $ 13,229 $ 59,202 $ 53,504
Interest Expense $ 4,162 $ 3,802 $ 15,110 $ 19,080
Net Interest Income $ 12,750 $ 9,427 $ 44,092 $ 34,424
Provision for Loan
Losses $ 1,843 $ 618 $ 5,663 $ 2,855
Noninterest Income $ 1,584 $ 1,055 $ 5,384 $ 4,702
Noninterest Expense $ 8,022 $ 5,548 $ 27,561 $ 22,276
Income Before Income
Tax $ 4,469 $ 4,316 $ 16,252 $ 13,995
Income Tax $ 1,559 $ 1,540 $ 5,354 $ 4,788
Net Income $ 2,910 $ 2,776 $ 10,898 $ 9,207
Net Income without
nonrecurring
items (1) $ 2,910 $ 2,776 $ 10,898 $ 8,949
Basic Earnings Per
Share (2) $ 0.36 $ 0.35 $ 1.37 $ 1.12
Diluted Earnings Per
Share (2) $ 0.34 $ 0.35 $ 1.33 $ 1.12
Basic Earnings Per
Share without
nonrecurring items
(2)(1) $ 0.36 $ 0.35 $ 1.37 $ 1.09
Diluted Earnings Per
Share without
nonrecurring
items(2)(1) $ 0.34 $ 0.35 $ 1.33 $ 1.08
Basic Weighted
Average Shares
Outstanding (2) 8,065,933 7,932,785 7,954,577 8,190,374
Diluted Weighted
Average Shares
Outstanding (2) 8,506,632 8,007,335 8,194,508 8,256,160
BALANCE SHEET December 31, December 31,
2002 2001
-------------- ---------------
Total Assets $ 916,831 $ 659,341
Net Loans $ 764,938 $ 580,899
Securities $ 48,173 $ 15,550
Deposits $ 766,335 $ 532,237
Borrowings $ 63,696 $ 53,601
Shareholders' Equity $ 81,130 $ 68,206
Book Value Per Share (2) $ 10.03 $ 8.63
Tangible Book Value Per Share (2) $ 8.15 $ 8.05
FINANCIAL RATIOS: (Annualized) December 31, December 31,
2002 2001
------------- ------------
Return on Average Assets 1.41% 1.46%
Return on Average Assets without
nonrecurring items (1) 1.41% 1.42%
Return on Average Equity 15.08% 13.87%
Return on Average Equity without
nonrecurring items (1) 15.08% 13.48%
Efficiency Ratio 55.71% 57.21%
Efficiency Ratio without nonrecurring
items (1) 55.71% 57.79%
Noninterest Expense to Average Assets 3.55% 3.54%
Net Interest Margin to Average Earning
Assets 6.18% 5.95%
Average Equity to Average Assets 9.32% 10.54%
Equity to Assets Ratio 8.85% 10.34%
ALLOWANCE FOR LOAN LOSSES:
($ in thousands) December 31, December 31,
2002 2001
-------------- ------------
Balance Beginning of Period $ 6,624 $ 4,948
Balances Acquired $ 878 -
Provision for Loan Losses $ 5,663 $ 2,855
Net (Charge Offs) / Recoveries $ (2,893) $ (1,179)
Balance End of Period $ 10,272 $ 6,624
Allowance for Loan Losses to Total Loans 1.32% 1.13%
Allowance for Loan Losses to Nonperforming
Loans 75.76% 50.12%
NONPERFORMING ASSETS:
($ in thousands) December 31, December 31,
2002 2001
------------ --------------
Accruing Loans -- 90 days past due $ 244 $ 2,193
Nonaccrual Loans $ 13,315 $ 11,023
Total Nonperforming Loans $ 13,559 $ 13,216
Foreclosed Assets $ 7,873 $ 1,616
Total Nonperforming Assets $ 21,432 $ 14,832
Total Nonperforming Assets to Total Assets 2.34% 2.25%
(1) In 2001 AmericanWest Bancorporation had nonrecurring income from
the sale of the insurance agency subsidiary.
(2) All per share figures have been adjusted for a 10% stock dividend
February 1, 2002.
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