AmericanWest Bancorporation Announces 2005 First Quarter 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 first quarter of 2005 was $3.1 million, or $0.30 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 $0.34 per diluted share for the first quarter of 2004. "The first quarter represents a return to core operations for the company," 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
adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern basis, our performance was on par with the first quarter of 2004. We are striving to improve our performance as we return to our community banking foundation." LOAN GROWTH AND CREDIT QUALITY: Consistent with the Company's expectations, gross loans at March 31, 2005 were $907.5 million, a decrease of 2.2% compared to $927.9 million at December December: see month. 31, 2004. "We expect to have flat loan growth during the first half of 2005 as we refocus Verb 1. refocus - focus once again; The physicist refocused the light beam" focus - cause to converge on or toward a central point; "Focus the light on this image" 2. our credit culture in combination with our normal seasonality," said Mr. Daugherty. The decrease in loans primarily relates to decreases in commercial real estate loans, agricultural loans, real estate construction and installment loans Noun 1. installment loan - a loan repaid with interest in equal periodic payments installment credit consumer credit - a line of credit extended for personal or household use loan - the temporary provision of money (usually at interest) . These decreases were offset by increases in commercial and industrial loans and bankcards and other loans. Commercial real estate loans, commercial and industrial loans, and agricultural loans comprised 88.5% of the gross loan portfolio at March 31, 2005, and 88.1% of the gross loan portfolio at December 31, 2004. Total nonperforming loans were $31.4 million or 3.5% of total gross loans at March 31, 2005, compared to $24.3 million or 2.6% of total gross loans at December 31, 2004. 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 foreclosed real estate and other foreclosed assets, were $33.3 million or 3.3% of total assets at March 31, 2005 compared to $28.5 million or 2.7% of total assets at December 31, 2004. The increase was primarily due to the placing of one commercial real estate loan in the amount of $4.8 million in nonperforming assets during the first quarter of 2005. Foreclosed real estate and other foreclosed assets decreased more than $2.2 million at March 31, 2005 compared to December 31, 2004 due to the sale of property. "Improving the credit quality of our portfolio remains our primary focus," said Mr. Daugherty. "We are aggressively addressing any credit deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. and have enhanced our credit process for all new loans. We are excited about the progress we are making addressing our credit issues. In addition to our reduction in foreclosed real estate and other foreclosed assets of more than $2.2 million in the first quarter, we entered into contracts that will reduce our nonperforming assets by an additional $7.5 million subsequent to quarter end without any additional provisions." Allowance for loan losses was $16.9 million for March 31, 2005, compared to $18.5 million at December 31, 2004. The allowance constituted 1.86% and 1.99% of total gross loans at March 31, 2005 and December 31, 2004, respectively. Provision for loan losses for the three months ended March 31, 2005 was $1.1 million compared to $1.0 million for the three months ended March 31, 2004. DEPOSIT GROWTH: At March 31, 2005, deposits were $856.8 million, down 4.2% from $894.8 million at December 31, 2004. The decrease from December 31, 2004 is due mainly to a decrease in interest bearing deposits offset by an increase in demand deposits. The cost of deposits increased to 1.94% for the quarter ended March 31, 2005, as compared to 1.74% for the quarter ended March 31, 2004, due to higher interest rates and the change in deposit mix. "We initiated a deposit campaign in March, the first in a long time for the Company, that we expect to increase our transaction accounts in the remainder of 2005," said Mr. Daugherty. "Retail banking will be an emphasis for us in 2005 and the years to follow." NET INTEREST MARGIN: Net interest margin decreased to 5.87% for the first quarter of 2005, compared to 6.20% for the first quarter of 2004 on a tax effected basis for nontaxable adj. 1. Not subject to taxation; - of goods imported into a country or sold at retail outlets; as, most laws imposing sales taxes make food nontaxable s>. Opposite of taxable nt>. Adj. 1. assets. This decrease was due to a decrease in loan yields and an increase in deposit costs which were partially offset by a reduction in borrowing costs. Net interest income decreased 2.6% to $13.7 million for the three months ended March 31, 2005, as compared to $14.1 million for the three months ended March 31, 2004. This decrease was due to an increase in interest expense on deposits and borrowings and a decrease in interest income from securities which were partially offset by the interest income received on loans. NONINTEREST INCOME AND EXPENSE: Noninterest income was $1.6 million for the three months ended March 31, 2005, an increase from $1.5 million for the three months ended March 31, 2004. This slight increase is due mainly to 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. Noninterest expense decreased to $9.5 million for the three months ended March 31, 2005 from $10.0 million for the three months ended March 31, 2004. The decrease in noninterest expense was primarily due to decreases in foreclosed real estate and other foreclosed assets expenses which were partially offset by occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy and equipment expenses. The occupancy expenses increases are due mainly to escalation clauses escalation clause n → cláusula de reajuste de los precios escalation clause n → clause f d'indexation escalation clause n in existing lease agreements and a leased building in 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. for the corporate headquarters. INCOME TAXES: Income tax expense for the quarter ended March 31, 2005 increased as a percentage of income before the provision for income taxes to 33.3% from 24.3% for the quarter ended March 31, 2004. The increase in the effective tax rate is due to the effect of rehabilitation rehabilitation: see physical therapy. tax credits recognized during 2004 which decreased the tax expense for the period. AmericanWest Bancorporation is a community bank holding company with 42 locations in 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. and 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). . For further information on the Company or to access Internet Internet 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. Such forward looking statements include the expectation that the Company will have flat loan growth during the first half of 2005 and that transaction accounts will increase during the remainder of 2005. 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 See demographics. 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 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. 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 Subject to change; dependent upon or granted based on the occurrence of a future, uncertain event. A conditional payment is the payment of a debt or obligation contingent upon the performance of a certain specified act. 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)
Three Months Ended
------------------------
Statement of Income Data 3/31/2005 3/31/2004 $Change % Change
Interest Income
Interest and fees on loans $ 16,983 $ 16,816 $ 167 1.0%
Interest on securities 343 458 $ (115) -25.1%
Other interest income 10 32 $ (22) -68.8%
----------- -----------
Total Interest Income 17,336 17,306 $ 30 0.2%
----------- -----------
Interest Expense
Interest on deposits 3,027 2,901 $ 126 4.3%
Interest on borrowings 568 297 $ 271 91.2%
----------- -----------
Total Interest Expense 3,595 3,198 $ 397 12.4%
----------- -----------
Net Interest Income 13,741 14,108 $ (367) -2.6%
Provision for loan losses 1,075 1,000 $ 75 7.5%
----------- -----------
Net Interest Income After
Provision for Loan Losses 12,666 13,108 $ (442) -3.4%
----------- -----------
Noninterest Income
Fees and service charges 1,123 1,133 $ (10) -0.9%
Other 442 406 $ 36 8.9%
----------- -----------
Total Noninterest Income 1,565 1,539 $ 26 1.7%
----------- -----------
Noninterest Expense
Salaries and employee
benefits 5,549 5,591 $ (42) -0.8%
Occupancy expense, net 1,045 755 $ 290 38.4%
Equipment expense 804 679 $ 125 18.4%
State business and
occupation tax 223 208 $ 15 7.2%
Foreclosed real estate and
other foreclosed assets
expense 66 819 $ (753) -91.9%
Other 1,839 1,920 $ (81) -4.2%
----------- -----------
Total Noninterest Expense 9,526 9,972 $ (446) -4.5%
----------- -----------
Income Before Provision for
Income Tax 4,705 4,675 $ 30 0.6%
Provision for Income Tax 1,566 1,138 $ 428 37.6%
----------------------
Net Income $ 3,139 $ 3,537 $ (398) -11.3%
=========== ===========
AmericanWest Bancorporation
Selected Consolidated Financial Highlights
($ in thousands, except per share data and ratios; unaudited)
Consolidated Statement of Condition
Assets 3/31/2005 12/31/2004 $Change % Change
Cash and due from banks $21,417 $26,915 $(5,498) -20.4%
Overnight interest bearing
deposits with other banks 1,737 2,302 $(565) -24.5%
----------------------
Cash and cash
equivalents 23,154 29,217 $(6,063) -20.8%
Securities 33,318 33,886 $(568) -1.7%
Loans, net of allowance for
loan losses of $16,923 890,600 909,255 $(18,655) -2.1%
and $18,475, respectively
Accrued interest receivable 6,534 6,520 $14 0.2%
Premises and equipment, net 24,183 23,955 $228 1.0%
Foreclosed real estate and
other foreclosed assets 1,940 4,201 $(2,261) -53.8%
Life insurance and salary
continuation assets 19,115 18,912 $203 1.1%
Goodwill 12,050 12,050 $- 0.0%
Intangible assets 2,579 2,642 $(63) -2.4%
Other assets 7,085 8,356 $(1,271) -15.2%
----------------------
Total Assets $1,020,558 $1,048,994 $(28,436) -2.7%
======================
Liabilities
Noninterest bearing demand
deposits $175,698 $169,579 $6,119 3.6%
Interest bearing deposits:
NOW and savings accounts 425,266 452,357 $(27,091) -6.0%
Time, $100,000 and over 107,807 123,006 $(15,199) -12.4%
Other time 148,068 149,856 $(1,788) -1.2%
----------------------
Total Deposits 856,839 894,798 $(37,959) -4.2%
Short-term borrowings 31,319 24,539 $6,780 27.6%
Long-term borrowings 4,260 5,668 $(1,408) -24.8%
Capital lease obligations 404 416 $(12) -2.9%
Subordinated debentures 10,310 10,310 $- 0.0%
Accrued interest payable 1,028 1,000 $28 2.8%
Other liabilities 7,424 7,188 $236 3.3%
----------------------
Total Liabilities 911,584 943,919 $(32,335) -3.4%
Stockholders' Equity
Common stock 101,866 100,812 $1,054 1.0%
Retained earnings 7,196 4,057 $3,139 77.4%
Accumulated other
comprehensive income, net of
tax (88) 206 $(294) -142.7%
----------------------
Total Stockholders'
Equity 108,974 105,075 $3,899 3.7%
----------------------
Total Liabilities and
Stockholders' Equity $1,020,558 $1,048,994 $(28,436) -2.7%
======================
AmericanWest Bancorporation
Selected Consolidated Financial Highlights
($ in thousands, except per share data and ratios; unaudited)
Three Months Ended
----------------------
Share Data 3/31/2005 3/31/2004
Basic earnings per share $0.30 $0.35
Diluted earnings per share $0.30 $0.34
Basic weighted average shares outstanding 10,338,025 10,150,470
Diluted weighted average shares outstanding 10,490,197 10,505,234
Three Months Ended
----------------------
Financial Ratios, annualized 3/31/2005 3/31/2004
Return on average assets 1.21% 1.42%
Return on average equity 11.68% 14.52%
Efficiency ratio 62.24% 63.73%
Noninterest expenses to average assets 3.68% 4.01%
Net interest margin to average earning assets 5.87% 6.20%
AmericanWest Bancorporation
Selected Consolidated Financial Highlights
($ in thousands, except per share data and ratios; unaudited)
Loan Portfolio: 3/31/2005 12/31/2004
Commercial real estate $488,038 $497,253
Commercial and industrial 199,657 197,912
Agricultural 115,176 122,735
Real estate construction 42,851 45,908
Real estate mortgage 32,577 32,703
Installment 19,989 22,454
Bankcards and other 9,211 8,909
---------------------
Total loans, gross $907,499 $927,874
---------------------
Allowance for loan losses (16,923) (18,475)
Deferred loan fees, net of deferred costs 24 (144)
---------------------
Total loans, net $890,600 $909,255
---------------------
Three Months Ended
Allowance for loan losses: 3/31/2005 3/31/2004
Balance, beginning of period $18,475 $12,453
Provision for loan losses 1,075 1,000
Net charge-offs (2,627) (948)
---------------------
Balance, end of period $16,923 $12,505
---------------------
Allowance for loan loss to total loans 1.86% 1.35%
Nonperforming assets: 3/31/2005 12/31/2004
Accruing loans over 90 days past due $46 $53
Nonaccrual loans 31,314 24,222
---------------------
Total nonperforming loans $31,360 $24,275
---------------------
Foreclosed real estate and other foreclosed
assets 1,940 4,201
---------------------
Total nonperforming assets $33,300 $28,476
---------------------
Ratio of total nonperforming assets to total
assets 3.26% 2.71%
Ratio of total nonperforming loans to total
gross loans 3.46% 2.62%
Ratio of allowance for loan loss to
nonperforming loans 53.96% 76.11%
AmericanWest Bancorporation
Selected Consolidated Financial Highlights
($ in thousands, except per share data and ratios; unaudited)
Three Months Ended March 31,
2005 2004
($ in thousands) Average Average
Assets Balance Interest % Balance Interest %
Loans, gross $919,350 $16,983 7.49% $864,428 $16,816 7.82%
Taxable Investments 25,867 252 3.95% 31,772 367 4.65%
Nontaxable Investments 8,723 138 6.42% 8,873 137 6.21%
Overnight deposits with
other banks 1,857 10 2.18% 11,019 32 1.17%
------------------- -----------------
Total earning
assets 955,797 $17,383 7.38% 916,092 $17,352 7.62%
------------------- -----------------
Other assets 79,541 77,444
----------- ---------
Total assets $1,035,338 $993,536
----------- ---------
Liabilities
Interest bearing
deposits $687,516 $3,027 1.79% $706,206 $2,901 1.65%
Borrowings 64,095 568 3.59% 31,994 297 3.73%
------------------- -----------------
Total
interestbearing
liabilities 751,611 $3,595 1.94% 738,200 $3,198 1.74%
------------------- -----------------
Noninterest bearing
deposits 167,729 151,106
Other liabilities 8,506 6,780
----------- ---------
Total liabilities 927,846 896,086
----------- ---------
Stockholders' equity 107,492 97,450
----------- ---------
Total liabilities
and stockholders'
equity $1,035,338 $993,536
----------- ---------
Net interest income and
spread 5.44% 5.88%
Net interest margin to average
earnings assets 5.87% 6.20%
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