AmericanWest Bancorp Completes Year of Growth; Loans Gain 19% to $588 Million; Assets are $659 Million, and Deposits $532 Million.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. 31, 2002 AmericanWest Bancorporation (Nasdaq:AWBC AWBC Australian Wine Brandy Corporation ) today reported 2001 as a very successful year. Fueled by internally generated growth, assets advanced to $659.3 million, deposits were $532.2 million and loans were $588.0 million at December December: see month. 31, 2001. This compares to assets of $598.5 million, deposits of $501.4 million and loans of $493.4 million the year before. On Thursday Thursday: see week. , December 27th, AWBC declared a 10% stock dividend to be issued February February: see month. 1, 2002. All per share figures have been adjusted for this stock dividend. During 2001 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 resulted from the sale of the insurance agency subsidiary. Net income was $9.2 million or $1.12 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 2001, including the nonrecurring gain of $392,000 from the above-described transaction. Excluding the nonrecurring item, net income was $8.9 million, or $1.08 per diluted share. For 2000, net income was $8.0 million or $0.90 per diluted share, which included a nonrecurring gain of $283,000 from rehabilitation rehabilitation: see physical therapy. tax credits and nonrecurring losses totaling $863,000 from the disposal of securities and write off of an impaired intangible asset Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. . For the fourth quarter of 2001, AWBC's net income without nonrecurring events was $2.8 million, or $.35 per diluted share. In the fourth quarter of 2000 net income without nonrecurring events was $2.2 million, or $.26 per diluted share. "The fourth quarter of 2001 was the most profitable quarter of the year," said Wes Colley Col´ley n. 1. See Collie. , President & Chief Executive Officer. The Bancorporation's fourth quarter net interest income increased to $9.4 million from $8.3 million the year before. "AWBC's corporate efficiency ratio improved to 57.21% compared to 61.44% in 2000," Colley said. "We continue to consolidate `back room' operations to improve productivity and efficiency throughout our organization." 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 $14.8 million, or 2.25% of total assets in 2001, compared to $8.3 million, or 1.39% of total assets in 2000. "The majority of the nonperforming assets involve four borrowers," said Wes Colley. "We are well secured on a $3.8 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 in Spokane for another $5.2 million. The fourth borrower of $0.8 million is on two apple orchards 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. Valley region. The allowance for loan loss is 1.13% of total loans and 50.1% of nonperforming loans as of December 31, 2001. We continue to monitor all loan performance closely and we will increase the loan loss reserve to 1.20% or higher in 2002. Loan charge offs were 0.20% of average total loans in 2001compared to 0.21% in 2000. Although nonperforming loans are high the percentage of loan dollars charged off of 0.20% is slightly under the last five-year average." Shareholder equity rose 6% to $68.2 million at December 31, 2001 compared to $64.5 million at the end of 2000. In 2001, AWBC repurchased 560,619 shares for $6.2 million, which directly affected the increase in shareholder equity. "AWBC will continue the current stock buy back program and may buy up to 540,000 shares over the next year," said Colley. For all of 2001, return on average assets (ROA ROA See: Return on assets ROA See: Right of accumulation ROA See return on assets (ROA). ) was 1.46%, while ROA without nonrecurring items was 1.42%. 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 13.87% in 2001 while ROE without the nonrecurring gain was 13.48%. AWBC's total book value per share rose to $8.63, while tangible book value increased 14% to $8.05 per share, adjusted for the stock dividends. The average equity to average assets ratio was 10.54%. Founded in 1983, AmericanWest Bancorporation is a community bank holding company with 33 branch offices -- 32 in Central and Eastern Washington
FINANCIAL HIGHLIGHTS
--------------------
(unaudited) ($ in thousand except per share)
Fourth Quarter Ended Year Ended
December 31, December 31,
2001 2000 2001 2000
---------- ---------- ---------- ----------
Interest Income $ 13,229 $ 13,727 $ 53,504 $ 50,042
Interest Expense $ 3,802 $ 5,385 $ 19,080 $ 19,686
Net Interest Income $ 9,427 $ 8,342 $ 34,424 $ 30,356
Provision for Loan
Losses $ 618 $ 647 $ 2,855 $ 1,643
Noninterest Income $ 1,055 $ 1,018 $ 4,702 $ 4,029
Noninterest Expense $ 5,548 $ 5,838 $ 22,276 $ 21,328
Income Before
Income Tax $ 4,316 $ 2,875 $ 13,995 $ 11,414
Income Tax $ 1,540 $ 825 $ 4,788 $ 3,379
Net Income $ 2,776 $ 2,050 $ 9,207 $ 8,035
Net Income without
nonrecurring
items(A) $ 2,776 $ 2,245 $ 8,949 $ 8,325
Basic Earnings Per
Share(B) $ 0.35 $ 0.24 $ 1.12 $ 0.91
Diluted Earnings
Per Share(B) $ 0.35 $ 0.24 $ 1.12 $ 0.90
Basic Earnings Per
Share without
nonrecurring
items(A)(B) $ 0.35 $ 0.26 $ 1.09 $ 0.94
Diluted Earnings
Per Share without
nonrecurring
items(A)(B) $ 0.35 $ 0.26 $ 1.08 $ 0.94
Basic Weighted
Average Shares
Outstanding(B) 7,932,785 8,519,111 8,190,374 8,819,697
Diluted Weighted
Average Shares
Outstanding(B) 8,007,335 8,591,469 8,256,160 8,881,387
BALANCE SHEET Dec. 31, 2001 Dec. 31, 2000
------------- ------------- -------------
Total Assets $ 659,341 $ 598,513
Loans $ 587,523 $ 493,407
Securities $ 15,550 $ 47,885
Deposits $ 532,237 $ 501,426
Borrowings $ 53,601 $ 27,367
Shareholders' Equity $ 68,206 $ 64,530
Book Value Per Share(B) $ 8.63 $ 7.65
Tangible Book Value Per Share(B) $ 8.05 $ 7.06
FINANCIAL RATIOS: (Annualized) Dec. 31, 2001 Dec. 31, 2000
---------------- ------------- -------------
Return on Average Assets 1.46% 1.44%
Return on Average Assets without
nonrecurring items(A) 1.42% 1.54%
Return on Average Equity 13.87% 12.73%
Return on Average Equity without
nonrecurring items(A) 13.48% 13.61%
Efficiency Ratio 57.21% 61.44%
Efficiency Ratio without nonrecurring
items(A) 57.79% 60.05%
Noninterest Expense to Average Assets 3.54% 3.83%
Net Interest Margin to Average Earning Assets 5.95% 5.96%
Average Equity to Average Assets 10.54% 11.32%
Equity to Assets Ratio 10.34% 10.78%
ALLOWANCE FOR LOAN LOSSES:
($ in thousands) Dec. 31, 2001 Dec. 31, 2000
------------- -------------
Balance Beginning of Period $ 4,948 $ 4,349
Provision for Loan Losses $ 2,855 $ 1,643
Net (Charge Offs) / Recoveries $ (1,179) $ (1,044)
Balance End of Period $ 6,624 $ 4,948
Allowance for Loan Losses to Total Loans 1.13% 1.00%
Allowance for Loan Losses to
Nonperforming Loans 50.12% 72.80%
NONPERFORMING ASSETS:
($ in thousands) Dec. 31, 2001 Dec. 31, 2000
------------- -------------
Accruing Loans - 90 days past due $ 2,193 $ 1,339
Nonaccrual Loans $ 11,023 $ 5,458
Total Nonperforming Loans $ 13,216 $ 6,797
Foreclosed Assets $ 1,616 $ 1,510
Total Nonperforming Assets $ 14,832 $ 8,307
Total Nonperforming Assets to Total Assets 2.25% 1.39%
(A) In 2001 AmericanWest Bancorporation had nonrecurring income from
the sale of the insurance agency subsidiary. Nonrecurring income
in 2000 was from the sale of one branch, real estate and
nonrecurring expense from the sale of securities, write-off of
impaired intangible asset, write-off of computer equipment and the
sale of real estate.
(B) All per share figures have been adjusted for a 10% stock dividend
announced January 4, which will be issued February 1, 2002.
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 new release looking forward in time involve risks and uncertainties, including efficiency improvements, increased loan loss reserve, loan and savings product demand, changes in the banking regulatory 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. |
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