AmericanWest Bancorporation Announces First Quarter Earnings.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)--April 29, 2004 AmericanWest Bancorporation (Nasdaq:AWBC AWBC Australian Wine Brandy Corporation ): For the three months ended March 31, 2004 as compared to March 31, 2003: -- Net income increased 10.1% -- Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of improved 9.7% -- Loans and deposits grew 10.3% and 12.5%, respectively -- Net interest margin has remained stable at 6.18% compared to 6.20% FINANCIAL PERFORMANCE: AmericanWest Bancorporation announced strong financial results for the first quarter of 2004. Net income was $3.5 million for the three months ended March 31, 2004 compared to $3.2 million for the three months ended March 31, 2003, while diluted earnings per share increased to $0.34, up 9.7% from March 31, 2003. The efficiency ratio increased to 63.73% for the three months ended March 31, 2004 compared to 59.76% for the same period a year ago. Return on average equity was 14.56% and return on average assets was 1.43% at March 31, 2004 as compared to 15.67% and 1.39%, respectively, at March 31, 2003. "The first quarter of the year has been historically challenging for us, due to the seasonality of our lending activities," said Wes Colley Col´ley n. 1. See Collie. , President and Chief Executive Officer. "However, we still achieved in excess of 10% increase in net income for the quarter." LOAN GROWTH AND CREDIT QUALITY: At March 31, 2004, the gross loans were $870.2 million, an increase of 10.3% compared to March 31, 2003, and a decrease of 0.7% from December December: see month. 31, 2003. This decrease is mainly due to the seasonality of lending activities. The loan portfolio has remained consistent with commercial and industrial loans accounting for 74% and agricultural loans accounting for 14% of the total loans at March 31, 2004 and December 31, 2003. These classifications were 72% and 15%, respectively at March 31, 2003. Total nonperforming loans were $11.3 million or 1.3% of total gross loans at March 31, 2004 compared to $12.5 million or 1.4% of total gross loans at December 31, 2003. At March 31, 2003, the total nonperforming loans were $13.0 million or 1.6% of total gross loans. Allowance for loan losses was $12.5 million for March 31, 2004 and December 31, 2003. This constituted 1.44% and 1.42% of total gross loans at March 31, 2004 and December 31, 2003, respectively. At March 31, 2003, allowance for loan losses was $10.9 million or 1.38% of total gross loans. The Company's 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. were $22.9 million or 2.26% of total assets at March 31, 2004 compared to $19.9 million or 1.95% at December 31, 2003 and $21.2 million or 2.31% at March 31, 2003. DEPOSIT GROWTH: At March 31, 2004, deposits were $861.5 million, up 12.5% from March 31, 2003. At December 31, 2003 total deposits were $871.1 million. The increase from the prior year is due mainly to an increase in money market accounts. The cost of deposits has decreased to 1.65% for the three months ended March 31, 2004 as compared to 2.12% for the three months ended March 31, 2003. NET INTEREST MARGIN: Net interest margin remained stable at 6.18% for the three months ended March 31, 2004 compared to 6.20% for the three months ended March 31, 2003. Net interest income increased 8.2% to $14.1 million for the three months ended March 31, 2004 as compared to $13.0 million for the three months ended March 31, 2003. This increase is due mainly to an increase of gross loans by 10.3% from March 31, 2003. NONINTEREST INCOME AND EXPENSE: Noninterest income was $1.5 million for the three months ended March 31, 2004, consistent with $1.4 million for the three months ended March 31, 2003. Noninterest expense increased to $10.0 million for the three months ended March 31, 2004 from $8.7 million for the three months ended March 31, 2003. The increase in noninterest expense was primarily due to expenses related to foreclosed real estate and other foreclosed assets. INCOME TAXES: Income tax expense has decreased as a percentage of income before income taxes to 24.3% at March 31, 2004 compared to 35.3% at March 31, 2003. There were 2 buildings placed into service during the quarter ended March 31, 2004, in which the Company had purchased historical rehabilitation rehabilitation: see physical therapy. tax credits. The Company has recognized these tax credits during the quarter causing the effective tax rate to decrease. Without the effect of the historical rehabilitation tax credits, the effective tax rate for the three months ended March 31, 2004 would have been 36.5%. MISSION STATEMENT: The mission of AmericanWest Bancorporation is to provide all employees with a positive environment in which to maximize In a graphical environment, to enlarge a window to the full size of the screen. See Win Maximize windows. 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 44 offices located 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 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, future financial targets and earnings outlook 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 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)
3 Months Ended
Statement of Income Data March 31, March 31,
2004 2003
Interest Income $17,306 $16,785
Interest Expense 3,198 3,743
Net Interest Income $14,108 $13,042
Provision for Loan Losses 1,000 866
Noninterest Income 1,539 1,445
Noninterest Expense 9,972 8,657
Income Before Income Tax $4,675 $4,964
Income Tax 1,138 1,752
Net Income $3,537 $3,212
3 Months Ended
Share Data (1) March 31, March 31,
2004 2003
Basic earnings per share $0.35 $0.32
Diluted earnings per share $0.34 $0.31
Basic weighted average shares outstanding 10,150,470 10,010,326
Diluted weighted average shares outstanding 10,505,234 10,409,434
Financial Ratios, annualized March 31, March 31,
2004 2003
Return on average assets 1.43% 1.41%
Return on average equity 14.56% 15.67%
Efficiency ratio 63.73% 59.76%
Noninterest expenses to average assets 4.01% 3.74%
Net interest margin to average earning assets 6.18% 6.20%
(1) All per share figures have been adjusted for a 10% stock dividend
paid February 20, 2004.
AmericanWest Bancorporation
Selected Consolidated Financial Highlights
($ in thousands; unaudited)
Statement of Condition Data March 31, March 31, December
2004 2003 31, 2003
Securities $41,479 $39,699 $40,726
Loans, gross $870,185 $788,829 $876,390
Total assets $1,013,734 $917,931 $1,023,907
Deposits $861,501 $765,977 $871,125
Shareholders' equity $100,780 $85,793 $96,198
Loan Portfolio March 31, March 31, December
2004 2003 31, 2003
Commercial and industrial $645,467 $565,677 $645,156
Agricultural 118,501 116,414 124,395
Real estate mortgage 38,127 43,869 38,075
Real estate construction 32,448 28,328 32,236
Installment 24,916 28,678 26,850
Bank cards and other 10,726 5,863 9,678
Total loans, gross $870,185 $788,829 $876,390
Allowance for loan losses (12,505) (10,873) (12,453)
Deferred loan fees, net of deferred
costs (179) (334) (219)
Total loans, net $857,501 $777,622 $863,718
Deposit Portfolio March 31, March 31, December
2004 2003 31, 2003
Noninterest bearing demand deposits $153,371 $129,997 $159,425
Interest bearing deposits:
NOW and savings accounts 448,472 326,747 399,726
Time, $100,000 and over 83,987 143,647 127,117
Other time 175,671 165,586 184,857
Total deposits $861,501 $765,977 $871,125
3 months ended
Allowance for loan losses: March 31, March 31,
2004 2003
Balance, beginning of period $12,453 $10,272
Provision for loan losses 1,000 866
Net charge-offs (948) (265)
Balance, end of period $12,505 $10,873
Allowance for loan loss to total
loans 1.44% 1.38%
Nonperforming assets: March 31, March 31, December
2004 2003 31, 2003
Accruing loans over 90 days past due $324 $222 $43
Nonaccrual loans 10,949 12,742 12,485
Total nonperforming loans $11,273 $12,964 $12,528
Foreclosed real estate and other
foreclosed assets 11,637 8,203 7,408
Total nonperforming assets $22,910 $21,167 $19,936
Ratio of total nonperforming assets
to total assets 2.26% 2.31% 1.95%
Ratio of total nonperforming loans to
total gross loans 1.30% 1.64% 1.43%
Ratio of allowance for loan loss to
nonperforming loans 110.93% 83.87% 99.40%
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