AmericanWest Bancorporation Announces 2005 Second 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 second quarter of 2005 was $3.5 million or $0.34 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, 179.3% higher than $1.3 million or $0.12 per diluted share for the second quarter of 2004. The year to date income for 2005 was $6.7 million or $0.64 per diluted share, 39.0% higher than $4.8 million or $0.46 per diluted share in 2004. "Our second quarter earnings were well above the prior years' results and the upward trend is continuing. We achieved a significant reduction in our 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. this quarter, from $33 million at March 31, 2005 to $19 million at June June: see month. 30, 2005, a 44% reduction. Very good progress has been made in all areas of the Bank over the last three quarters as we return to our community banking foundation," 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
LOAN GROWTH AND CREDIT QUALITY: Gross loans increased $57.8 million or 6.2% at June 30, 2005 to $985.6 million compared to $927.9 million at December December: see month. 31, 2004. This includes an increase of $62.7 million or 12.6% in commercial real estate loans during the year, offset by small fluctuations in other categories. A majority of this increase was due to multi-family loan purchases which occurred late in June of 2005. Commercial real estate loans continue to be a significant percentage of the total portfolio at 56.8% as of June 30, 2005 compared to 53.6% at December 31, 2004. Total nonperforming loans were $15.5 million or 1.6% of total gross loans at June 30, 2005 compared to $31.4 million or 3.5% of total gross loans at March 31, 2005, a 50.5% reduction for the quarter, and compared to $24.3 million or 2.6% of total gross loans at December 31, 2004. The $15.8 million decrease in nonperforming loans during this past quarter is due primarily to the repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan , with interest, of a $6.2 million nonaccruing loan, the return of $5.4 million in loans to accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. status following remediation of the underlying issues, the repayment of $1.9 million in loans and the transfer into foreclosed real estate and other foreclosed assets of a land secured loan in the amount of $1.3 million together with other smaller loan resolutions. The Company's total nonperforming assets, including foreclosed real estate and other foreclosed assets, were $18.7 million or 1.7% of total assets at June 30, 2005 compared to $33.3 million or 3.3% of total assets at March 31, 2005 and $28.5 million or 2.7% of total assets at December 31, 2004. Allowance for loan losses was $15.4 million for June 30, 2005 compared to $18.5 million at December 31, 2004. At June 30, 2005 the allowance for loan losses as a percentage of total gross loans was 1.56% as compared to the June 30, 2004 allowance of 1.52%. The December 31, 2004 allowance was 1.99%, the decline to the levels at June 30, 2005 is due to the resolution of various nonperforming loans in line with the provisions provided during the six months ended June 30, 2005. Provision for loan losses for the three and six months ended June 30, 2005 was $0.2 million and $1.3 million, respectively. These are compared to $5.7 million and $6.7 million for the three and six months ended June 30, 2004, respectively. The June 30, 2004 provision included a specific provision of $4.0 million related to one borrower BORROWER, contracts. He to whom a thing is lent at his request. 2. The contract of loan confers rights, and imposes duties on the borrower' 1. In general, he has the right to use the thing borrowed, during the time and for the purpose intended between the relationship. Loan charge offs for the three months ended June 30, 2005 were $1.8 million compared to $4.7 million for the three months ended June 30, 2004. Loan charge offs for the six months ended June 30, 2005 were $4.5 million compared to $5.7 million for the six months ended June 30, 2004. DEPOSIT AND BORROWING BALANCES: Deposits were $848.2 million as of June 30, 2005, which is down $46.6 million or 5.2% from $894.8 million at December 31, 2004. The decrease is mainly due to lower interest bearing deposit balances, which were partially offset by higher demand deposit balances. The cost of deposits increased to 1.93% for the six month period ended June 30, 2005 compared to 1.60% for the similar period ended June 30, 2004 due to higher interest rates reflecting increases in rates by the Federal Reserve Board. Short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. borrowings were $124.2 million as of June 30, 2005, which is an increase of $99.7 million from $24.5 million at December 31, 2004. 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. borrowings were $3.3 million at June 30, 2005, which is a decrease of $2.4 million from December 31, 2004. Overall, borrowings have increased to replace the decline in deposit balances and to support asset growth. NET INTEREST MARGIN: Net interest margin decreased to 5.87% for the six month period through June 30, 2005 compared to 6.34% for the similar period of 2004. This decrease was primarily due to an increase in deposit and borrowing costs related to rising market rates. Loan yields have also declined related to improving credit quality in new loan originations The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. . Net interest income decreased 9.4% or $1.4 million to $13.8 million for the three months ended June 30, 2005, as compared to $15.2 million for the three months ended June 30, 2004. This decrease was primarily due to the increase in interest expense on deposits and borrowings of $0.7 million and $0.2 million, respectively. In addition, a decrease in loan income of $0.4 million and investment income of $0.2 million contributed to the decrease in net interest income. Net interest income for the six months ended June 30, 2005 was $27.5 million, a decrease of 6.1% or $1.8 million, from $29.3 million at June 30, 2004. This decrease is mainly due to the increase in interest expense on deposits and borrowings of $0.8 million and $0.5 million, respectively. NONINTEREST INCOME AND EXPENSE: Noninterest income was $1.6 million for the three months ended June 30, 2005, a decrease from $2.7 million for the three months ended June 30, 2004. Noninterest income was $3.1 million for the six months ended June 30, 2005 compared to $4.2 million for the similar period in 2004. This decrease is mainly due to the gain on divesture Di`ves´ture n. 1. Divestiture. of a branch in 2004 which was recorded at $0.6 million and gains on the sale of foreclosed real estate and other foreclosed assets which have decreased approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $0.3 million from the prior year. Noninterest expense decreased modestly by $0.3 million or 3.0% to $9.9 million for the three months ended June 30, 2005 from $10.2 million for the three months ended June 30, 2004. This change is mainly due to foreclosed real estate and other foreclosed assets expense decreasing $0.6 million for the three month period. Write downs of $0.8 million in the three month period ending June 30, 2004, which did not occur in the three month period ending June 30, 2005, explain this difference. The noninterest expense for the six months ended June 30, 2005 decreased $0.8 million or 3.8% to $19.4 million as compared to $20.1 million for the similar period in 2004. This decrease is mainly due to a decrease in foreclosed real estate and other foreclosed assets expense of $1.4 million for the six month period which was caused by $1.5 million of write downs in 2004, offset slightly by other foreclosed real estate and other foreclosed asset activity. INCOME TAXES: The effective tax rate for the six months ended June 30, 2005 was 33.2% as compared to 27.8% for the six months ended June 30, 2004. The increase in the tax rate is due to tax credits taken in 2004. 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 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. : This press release contains certain forward-looking statements 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) ). Such forward-looking statements include but are not limited to, that an upward trend in earnings will continue and that the Company will continue to make progress in its business areas. 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 Six Months Ended
----------------------- ----------------------
Statement of Income
Data 6/30/2005 6/30/2004 6/30/2005 6/30/2004
Interest Income
Interest and fees on
loans $ 17,513 $ 17,873 $ 34,496 $ 34,689
Interest on
securities 328 555 671 1,013
Other interest
income 21 15 31 47
---------- ---------- ---------- ----------
Total Interest Income 17,862 18,443 35,198 35,749
---------- ---------- ---------- ----------
Interest Expense
Interest on deposits 3,460 2,802 6,487 5,703
Interest on
borrowings 612 428 1,180 725
---------- ---------- ---------- ----------
Total Interest Expense 4,072 3,230 7,667 6,428
---------- ---------- ---------- ----------
Net Interest Income 13,790 15,213 27,531 29,321
Provision for loan
losses 190 5,710 1,265 6,710
---------- ---------- ---------- ----------
Net Interest Income
After Provision for
Loan Losses 13,600 9,503 26,266 22,611
---------- ---------- ---------- ----------
Noninterest Income
Fees and service
charges 1,213 1,218 2,336 2,351
Other 352 1,436 794 1,842
---------- ---------- ---------- ----------
Total Noninterest
Income 1,565 2,654 3,130 4,193
---------- ---------- ---------- ----------
Noninterst Expense
Salaries and
employee benefits 5,554 5,829 11,103 11,420
Occupancy expense,
net 772 714 1,817 1,469
Equipment expense 715 626 1,519 1,305
State business and
occupation tax 226 191 449 399
Foreclosed real
estate and other
foreclosed assets
expense 353 957 419 1,776
Other 2,246 1,859 4,085 3,779
---------- ---------- ---------- ----------
Total Noninterest
Expense 9,866 10,176 19,392 20,148
---------- ---------- ---------- ----------
Income Before
Provision for Income
Tax 5,299 1,981 10,004 6,656
Provision for Income
Tax 1,757 713 3,323 1,851
---------- ---------- ---------- ----------
Net Income $ 3,542 $ 1,268 $ 6,681 $ 4,805
========== ========== ========== ==========
AmericanWest Bancorporation
Selected Consolidated Financial Highlights
($ in thousands, except per share data and ratios; unaudited)
Three Months Ended Six Months Ended
------------------------- --------------------------
Share Data 6/30/2005 6/30/2004 6/30/2005 6/30/2004
Basic earnings
per share $ 0.34 $ 0.12 $ 0.65 $ 0.47
Diluted earnings
per share $ 0.34 $ 0.12 $ 0.64 $ 0.46
Basic weighted
average shares
outstanding 10,387,957 10,205,436 10,355,891 10,168,811
Diluted weighted
average shares
outstanding 10,530,325 10,525,173 10,488,641 10,514,957
Six Months Ended
----------------------
Financial Ratios, annualized 6/30/2005 6/30/2004
Return on average assets 1.30% 0.93%
Return on average equity 12.29% 9.68%
Efficiency ratio 63.25% 60.12%
Noninterest expenses to
average assets 3.77% 3.91%
Net interest margin to average
earning assets 5.88% 6.34%
AmericanWest Bancorporation
Selected Consolidated Financial Highlights
($ in thousands, except per share data and ratios; unaudited)
Consolidated Statement
of Condition 6/30/2005 12/31/2004 $ Change % Change
Cash and due from
banks $ 32,479 $ 26,915 $ 5,564 20.7%
Overnight interest
bearing deposits with
other banks 304 2,302 (1,998) -86.8%
---------- -----------
Cash and cash
equivalents 32,783 29,217 3,566 12.2%
Securities 29,292 33,886 (4,594) -13.6%
Loans, net of
allowance for loan
losses of $15,377 970,940 909,255 61,685 6.8%
and $18,475,
respectively
Accrued interest
receivable 6,582 6,520 62 1.0%
Premises and
equipment, net 23,623 23,955 (332) -1.4%
Foreclosed real estate
and other foreclosed
assets 3,222 4,201 (979) -23.3%
Life insurance and
salary continuation
assets 19,318 18,912 406 2.1%
Goodwill 12,050 12,050 - 0.0%
Intangible assets 2,516 2,642 (126) -4.8%
Other assets 7,333 8,356 (1,023) -12.2%
---------- -----------
Total Assets $1,107,659 $ 1,048,994 $ 58,665 5.6%
========== ===========
Liabilities
Noninterest bearing -
demand deposits $ 179,614 $ 169,579 $ 10,035 5.9%
Interest bearing
deposits:
NOW and savings
accounts 397,852 452,357 (54,505) -12.0%
Time, $100,000
and over 125,809 123,006 2,803 2.3%
Other time 144,959 149,856 (4,897) -3.3%
---------- -----------
Total Deposits 848,234 894,798 (46,564) -5.2%
Short-term borrowings 124,239 24,539 99,700 406.3%
Long-term borrowings 3,255 5,668 (2,413) -42.6%
Capital lease
obligations 392 416 (24) -5.8%
Subordinated
debentures 10,310 10,310 - 0.0%
Accrued interest
payable 1,113 1,000 113 11.3%
Other liabilities 7,203 7,188 15 0.2%
---------- -----------
Total Liabilities 994,746 943,919 50,827 5.4%
Stockholders' Equity
Common stock 102,140 100,812 1,328 1.3%
Retained earnings 10,738 4,057 6,681 164.7%
Accumulated other
comprehensive income,
net of tax 35 206 (171) -83.0%
---------- -----------
Total
Stockholders'
Equity 112,913 105,075 7,838 7.5%
---------- -----------
Total Liabilities
and
Stockholders'
Equity $1,107,659 $ 1,048,994 $ 58,665 5.6%
========== ===========
AmericanWest Bancorporation
Selected Consolidated Financial Highlights
($ in thousands, except per share data and ratios; unaudited)
Loan Portfolio 6/30/2005 12/31/2004
Commercial real estate $559,994 $497,253
Commercial and industrial 195,388 197,912
Agricultural 126,648 122,735
Real estate construction 40,478 45,908
Real estate mortgage 33,824 32,703
Installment 19,227 22,454
Bankcards and other 10,071 8,909
-------------- ------------
Total loans, gross $985,630 $927,874
-------------- ------------
Allowance for loan losses (15,377) (18,475)
Deferred loan fees, net of
deferred costs 687 (144)
-------------- ------------
Total loans, net $970,940 $909,255
-------------- ------------
Three Months Ended Six Months Ended
Allowance for loan losses: 6/30/2005 6/30/2004 6/30/2005 6/30/2004
Balance, beginning of
period $16,923 $12,505 $18,475 $12,453
Provision for loan losses 190 5,710 1,265 6,710
Loan charge-offs (1,832) (4,728) (4,507) (5,743)
Loan recoveries 96 524 144 591
-------------------- ----------------------
Balance, end of period $15,377 $14,011 $15,377 $14,011
-------------------- ----------------------
Allowance for loan loss to
total loans 1.56% 1.52% 1.56% 1.52%
Nonperforming assets: 6/30/2005 3/31/2005 12/31/2004
Accruing loans over 90 days
past due $74 $46 $53
Nonaccrual loans 15,441 31,314 24,222
--------------------------------
Total nonperforming loans $15,515 $31,360 $24,275
Foreclosed real estate and
other foreclosed assets 3,222 1,940 4,201
--------------------------------
Total nonperforming assets $18,737 $33,300 $28,476
Ratio of total nonperforming
assets to total assets 1.69% 3.26% 2.71%
Ratio of total nonperforming
loans to total gross loans 1.57% 3.46% 2.62%
Ratio of allowance for loan
loss to nonperforming loans 99.11% 53.96% 76.11%
AmericanWest Bancorporation
Selected Consolidated Financial Highlights
($ in thousands, except per share data and ratios; unaudited)
Six Months Ended June 30,
2005 2004
($ in thousands) Average Average
Assets Balance Interest % Balance Interest %
Loans, gross $ 915,530 $34,496 7.60% $ 882,441 $34,689 7.91%
Taxable
Investments 24,137 489 4.09% 33,783 826 4.92%
Nontaxable
Investments 8,712 276 6.39% 8,971 278 6.23%
Overnight
deposits with
other banks 1,166 31 5.36% 8,403 47 1.12%
---------- ------- ---------- -------
Total
earning
assets 949,545 $35,292 7.50% 933,598 $35,840 7.72%
---------- ------- ---------- -------
Other assets 80,379 96,424
---------- ----------
Total
assets $1,029,924 $1,030,022
---------- ----------
Liabilities
Interest bearing
deposits $ 679,334 $ 6,487 1.93% $ 715,026 $ 5,703 1.60%
Borrowings 62,922 1,180 3.78% 55,968 725 2.61%
---------- ------- ---------- -------
Total
interest-
bearing
liabilities 742,256 $ 7,667 2.08% 770,994 $ 6,428 1.68%
---------- ------- ---------- -------
Noninterest
bearing
deposits 169,967 152,229
Other
liabilities 8,984 7,499
---------- ----------
Total
liabilities 921,207 930,722
---------- ----------
Stockholders'
equity 108,717 99,300
---------- ----------
Total
liabilities
and stock-
holders'
equity $1,029,924 $1,030,022
---------- ----------
Net interest income and spread 5.42% 6.04%
Net interest margin to average earnings assets 5.87% 6.34%
The above table includes nonaccrual loans in the average loan
balances. Tax exempt securities income has been presented using a tax
equivalent basis and an assumed tax rate of 34%.
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