AmericanWest Bancorporation Announces Additional Provision and Foreclosed Asset Writedowns.SPOKANE, Wash. -- AmericanWest Bancorporation (Nasdaq:AWBC AWBC Australian Wine Brandy Corporation ) announced today that its fourth quarter 2004 results would include additional provision for loan losses and foreclosed asset writedowns totaling up to approximately $9.8 million. These charges are the result of a comprehensive review of the Company's loan portfolio that was initiated and completed during the fourth quarter in connection with recent changes in executive management. This review was conducted by an independent consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a under the direction of Robert M. Daugherty, who was appointed as President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. on September 20, 2004. "As part of our review process, there were several large loans that were downgraded and we received updated market valuations on three of our 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 properties," remarked Daugherty. "Completion of this review will enable us to now focus our efforts on enhancement of the credit culture, a process which began shortly after I joined the company three months ago. Asset quality and the collection of existing problem loans will be the top priorities for us in 2005," Daugherty added. The provision for loan losses for the fourth quarter is expected to be up to approximately $7.0 million. In connection with this provision charge, the Company expects to recognize net charge-offs of approximately $1.1 million for the fourth quarter. For the full year 2004, the provision for loan losses is expected to be approximately $15.5 million, or 1.69% of average gross loans, net charge-offs are expected to be $6.9 million, or 0.76% of average gross loans, and the allowance for loans and lease losses is projected to be approximately 2.25% of total gross loans outstanding. The Company expects to recognize total foreclosed asset writedowns of approximately $2.8 million for the fourth quarter. The combined fourth quarter 2004 provision and foreclosed asset writedowns are expected to total up to approximately $6.4 million, net of related tax benefits, or $0.61 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. AmericanWest expects to issue its fourth quarter 2004 earnings release on February 2, 2005. 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 long-term shareholder value and to provide a superior rate of return on shareholder investment. AmericanWest Bancorporation is a community bank holding company with 42 offices located in Eastern Washington
FORWARD LOOKING STATEMENTS: This 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 expected provision for loan losses, foreclosed asset write-downs, net charge-offs, net income and the overall quality of the loan portfolio. 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 and quality of borrowers and assets securing loans), 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 "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. 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. |
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