AmericanWest Bancorporation Announces 2004 Fourth Quarter and Year End Results.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. -- AmericanWest Bancorporation (Nasdaq:AWBC AWBC Australian Wine Brandy Corporation ) today announced that net income for the fourth quarter of 2004 was $0.7 million, or $0.07 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 compared to $3.5 million or $0.33 per diluted share for the fourth quarter of 2003. For the year ended December December: see month. 31, 2004 net income was $9.5 million or $0.91 per diluted share, compared to $14.0 million, or $1.34 per diluted share for 2003. Per share figures for 2003 have been adjusted for a 10% stock dividend issued on February February: see month. 14, 2004. "The results for the fourth quarter and 2004 as a whole were disappointing; however, we needed to address issues head-on head-on adv. 1. With the head or front first: The cars crashed head-on. 2. In open conflict; in direct opposition: and aggressively," said Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. M. Daugherty Daugherty can refer to: People
On December 30, 2004, AWBC announced that it would take additional provision for loan losses and write downs on foreclosed assets as a result of a review of its loan portfolio initiated and completed during the fourth quarter. Results for the fourth quarter included $4.5 million in provision for loan losses in comparison to $2.7 million for the fourth quarter of 2003. Additionally, $2.8 million in write downs 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 occurred during the fourth quarter. The difference between the estimated $7.0 million provision for loan losses for the fourth quarter announced on December 30, 2004 and actual fourth quarter provision of $4.5 million reflects positive developments on two large loans and additional information provided on several other loans. LOAN GROWTH AND CREDIT QUALITY: At December 31, 2004, gross loans were $927.9 million, an increase of 5.9% compared to $876.4 million at December 31, 2003. The increases were mainly due to increases in commercial real estate loans, commercial and industrial loans, and real estate construction. Commercial real estate loans, commercial and industrial loans, and agricultural loans comprised 88.1% of the gross loan portfolio at December 31, 2004, and 87.8% of the gross loan portfolio at December 31, 2003. Total nonperforming loans were $23.5 million or 2.5% of total gross loans at December 31, 2004, compared to $12.5 million or 1.4% of total gross loans at December 31, 2003. The Company's 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. , including its foreclosed real estate and other foreclosed assets were $27.7 million or 2.64% of total assets at December 31, 2004 compared to $19.9 million or 1.95% of total assets at December 31, 2003. Allowance for loan losses was $18.5 million for December 31, 2004, compared to $12.5 million at December 31, 2003. The allowance constituted 1.99% and 1.42% of total gross loans at December 31, 2004 and December 31, 2003, respectively. Provision for loan losses for the three months ended December 31, 2004 was $4.5 million compared to $2.7 million for the three months ended December 31, 2003. The provision for loan losses for 2004 was $13.0 million compared to $6.3 million in 2003. The amount for 2004 included $4.0 million related to a single borrower that was originally announced on May 20, 2004. "Improvement in our credit performance and reducing our nonperforming assets is our top priority in 2005," said Daugherty. "We are changing our credit culture across the board to place emphasis on a more conventional approach to credit underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. and administration." DEPOSIT GROWTH: At December 31, 2004, deposits were $894.8 million, up 2.7% from $871.1 million at December 31, 2003. The increase from December 31, 2003 is due mainly to an increase in noninterest bearing demand deposits and NOW and savings accounts Savings Account A deposit account intended for funds that are expected to stay in for the short term. A savings account offers lower returns than the market rates. Notes: , including money market accounts. The increase in these types of deposits was offset by a decrease in time deposits. The cost of deposits decreased to 1.62% for the year ended December 31, 2004, as compared to 1.94% for the year ended December 31, 2003, due to lower interest rates and the change in deposit mix. NET INTEREST MARGIN: Net interest margin decreased to 6.16% for 2004, compared to 6.49% for 2003. This decrease was due to a decrease on loan and investment yields which were partially offset by decreases in deposit and borrowing costs. An increase in the average balances of the investment portfolio and borrowings portfolio also contributed to the decrease in the net interest margin. Higher yielding certificates of deposits constituted 30% of the deposit mix at December 31, 2004 and 36% of the mix at December 31, 2003, while the lower yielding NOW and savings account balances increased to 51% of the mix as compared to 46% in the prior year. Net interest income increased 2.4% to $15.6 million for the three months ended December 31, 2004, as compared to $15.2 million for the three months ended December 31, 2003. Net interest income for the years ended December 31, 2004 and 2003 was $61.0 million and $56.8 million, respectively. These increases were due mainly to an increase in average 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 at December 31, 2004 in comparison to December 31, 2003. NONINTEREST INCOME AND EXPENSE: Noninterest income was $1.9 million for the three months ended December 31, 2004, an increase from $1.5 million for the three months ended December 31, 2003. The year ended December 31, 2004 resulted in $8.0 million in noninterest income in comparison to $6.2 million for the year ended December 31, 2003. The results for 2004 include a $618 thousand gain related to the divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of a branch and related deposits in Ione, Washington Ione is a town in Pend Oreille County, Washington, United States. The population was 479 at the 2000 census. History Ione was officially incorporated on January 11, 1910. Geography Ione is located at (48.740540, -117. that contained approximately $15.1 million in deposits. The remainder of the increase for the three months and year ended December 31, 2004 in comparison to 2003 relate to gains on sales of real estate owned, increases in the cash surrender value The amount of money that an insurance company pays the insured upon cancellation of a life insurance policy before death and which is a specific figure assigned to the policy at that particular time, reduced by a charge for administrative expenses. of bank owned life insurance, and increases in fees and service charges. Noninterest expense increased to $12.6 million for the three months ended December 31, 2004 from $8.7 million for the three months ended December 31, 2003. For 2004, noninterest expense was $42.7 million compared to $35.1 million during the same period a year ago. The increase in noninterest expense was primarily due to increases in compensation expense, facilities related expense and expense related to foreclosed real estate and other foreclosed assets. Expense related to foreclosed real estate and other foreclosed assets, including write downs, was $5.3 million in 2004 compared to $1.7 million in 2003. INCOME TAXES: Income tax expense for the year ended December 31, 2004 decreased as a percentage of income before income taxes to 27.9% compared to 34.9% for the year ended December 31, 2003. The reduction in the effective tax rate is due to the effect of rehabilitation rehabilitation: see physical therapy. tax credits recognized during 2004, the effect of the level of permanent tax differences in relation to total taxable income Under the federal tax law, gross income reduced by adjustments and allowable deductions. It is the income against which tax rates are applied to compute an individual or entity's tax liability. The essence of taxable income is the accrual of some gain, profit, or benefit to a taxpayer. , and the effect of the expected surrender of bank owned life insurance policies due to the policies' deteriorating de·te·ri·o·rate v. de·te·ri·o·rat·ed, de·te·ri·o·rat·ing, de·te·ri·o·rates v.tr. To diminish or impair in quality, character, or value: performance and unacceptable carrier risks. OTHER MATTERS: Historically, AWBC has issued a stock dividend on a regular basis. However, as a result of a comprehensive review of its capital structure, AWBC has decided that it will not issue a stock dividend in 2005. AWBC will continue to monitor its capital structure including the possibility of cash dividends and stock repurchases Stock repurchase A firm's repurchase of outstanding shares of its common stock. , but currently has no plans to issue stock dividends in the future. MISSION STATEMENT: The mission of AmericanWest Bancorporation is to provide all employees with a positive environment in which to maximize their contributions to our success and attain their career goals; in order to be responsive to customer needs, and partner in helping individuals and businesses in our markets achieve their financial goals, in order to optimize optimize - optimisation long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. shareholder value and to provide a superior rate of return on shareholder investment. AmericanWest Bancorporation is a community bank holding company with 42 locations in Eastern Washington
Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the banking, please visit our web site at www.awbank.net. FORWARD LOOKING STATEMENTS: This press release contains certain 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. within 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 (PSLRA PSLRA Private Securities Litigation Reform Act PSLRA Public Service Labour Relations Act (Canada) ), including statements about the financial condition, results of operations, credit performance, and reduction of nonperforming loans of the Company. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Those factors include, but are not limited to, impact of the current national and regional economy on small business loan demand in the Company's market, loan delinquency delinquency Criminal behaviour carried out by a juvenile. Young males make up the bulk of the delinquent population (about 80% in the U.S.) in all countries in which the behaviour is reported. rates, changes in portfolio composition, the bank's ability to attract quality commercial business, interest rate movements and the impact on margins such movement may cause, changes in the demographic make-up Make-up The amount of deficiency when a cash flow or capital item is deficient. For example, an interest make-up relates to the interest amount above a ceiling percentage. of the Company's market, fluctuation Fluctuation A price or interest rate change. in demand for the Company's products and services, the Company's ability to attract and retain qualified people, regulatory changes, competition with other banks and financial institutions, and other factors. For a discussion of factors that could cause actual results to differ, please see the Company's reports on Forms 10-K and 10-Q as filed with the Securities and Exchange Commission. Words such as "targets," "expects," "anticipates," "believes," other similar expressions or future or conditional verbs such as "will," "may," "should," "would," and "could" are intended to identify such forward-looking statements. Readers should not place undue reliance on the forward-looking statements, which reflect management's view only as of the date hereto here·to adv. To this document, matter, or proposition. hereto Adverb Formal or law to this place, matter, or document Adv. 1. . The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . This statement is included for the express purpose of protecting the Company under PSLRA's 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. provisions.
AmericanWest Bancorporation
Selected Consolidated Financial Highlights
($ in thousands, except per share data and ratios; unaudited)
3 months ended Years Ended
---------------------- ----------------------
Statement of Income Data 12/31/2004 12/31/2003 12/31/2004 12/31/2003
Interest Income $19,398 $18,714 $74,936 $71,248
Interest Expense 3,794 3,469 13,959 14,486
Net Interest Income $15,604 $15,245 $60,977 $56,762
Provision for Loan Losses 4,548 2,741 13,046 6,324
Noninterest Income 1,921 1,486 7,990 6,176
Noninterest Expense 12,622 8,654 42,746 35,120
Income Before Income Tax $355 $5,336 $13,175 $21,494
Income Tax (367) 1,875 3,670 7,508
Net Income $722 $3,461 $9,505 $13,986
3 months ended Years Ended
---------------------- ----------------------
Share Data (1) 12/31/2004 12/31/2003 12/31/2004 12/31/2003
Basic earnings per share $0.07 $0.34 $0.93 $1.39
Diluted earnings per share $0.07 $0.33 $0.91 $1.34
Basic weighted average
shares outstanding 10,241,667 10,086,066 10,185,246 10,045,836
Diluted weighted average
shares outstanding 10,475,127 10,473,852 10,478,969 10,473,852
Years Ended
----------------------
Financial Ratios 12/31/2004 12/31/2003
Return on average assets 0.88% 1.47%
Return on average equity 9.37% 15.87%
Efficiency ratio 61.98% 55.80%
Noninterest expenses to
average assets 3.94% 3.70%
Net interest margin to
average earning assets 6.16% 6.49%
(1) All per share figures have been adjusted for a 10% stock dividend
paid February 20, 2004.
AmericanWest Bancorporation
Selected Consolidated Financial Highlights
($ in thousands, except per share data and ratios; unaudited)
Statement of Condition Data 12/31/2004 12/31/2003
Securities $33,886 $40,726
Loans, gross $927,874 $876,390
Total assets $1,048,883 $1,023,907
Deposits $894,798 $871,125
Shareholders' equity $104,964 $96,198
Loan Portfolio 12/31/2004 12/31/2003
Commercial real estate $497,253 $461,538
Commercial and industrial 197,912 183,618
Agricultural 122,735 124,395
Real estate mortgage 32,703 38,075
Real estate construction 45,908 32,236
Installment 22,454 26,850
Bank cards and other 8,909 9,678
----------------------
Total loans, gross $927,874 $876,390
----------------------
Allowance for loan losses (18,475) (12,453)
Deferred loan fees, net of deferred costs (144) (219)
----------------------
Total loans, net $909,255 $863,718
----------------------
Deposit Portfolio 12/31/2004 12/31/2003
Noninterest bearing demand deposits $169,579 $159,425
Interest bearing deposits:
NOW and savings accounts 452,357 399,726
Time, $100,000 or more 123,006 127,117
Other time 149,856 184,857
----------------------
Total deposits $894,798 $871,125
----------------------
Years Ended
Allowance for loan losses: 12/31/2004 12/31/2003
Balance, beginning of period $12,453 $10,272
Provision for loan losses 13,046 6,324
Net charge-offs (7,024) (4,143)
----------------------
Balance, end of period $18,475 $12,453
----------------------
Allowance for loan loss to total loans 1.99% 1.42%
Nonperforming assets: 12/31/2004 12/31/2003
Accruing loans over 90 days past due $53 $43
Nonaccrual loans $23,435 $12,485
Total nonperforming loans $23,488 $12,528
Foreclosed real estate and other foreclosed
assets $4,201 $7,408
Total nonperforming assets $27,689 $19,936
Ratio of total nonperforming assets to total
assets 2.64% 1.95%
Ratio of total nonperforming loans to total
gross loans 2.53% 1.43%
Ratio of allowance for loan loss to
nonperforming loans 78.66% 99.40%
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion