AmericanWest Bancorporation Announces Revision in Previously Issued Third Quarter Financial Results.

SPOKANE, Wash. -- AmericanWest Bancorporation (Nasdaq: AWBC) announced today that its third quarter 2006 financial results, originally issued on October 24, 2006, have been revised to reflect an increase in its provision for loan losses of $2.4 million, the related tax effect of $0.9 million and an increase in net charge offs of $2.4 million. The increased provision was recorded in connection with the charge off of the remaining outstanding balance of a loan relationship previously classified as nonperforming in the October 24, 2006 earnings announcement. Based upon recently obtained information, management now deems it prudent to recognize these loans as losses as this is a complex bankruptcy and the anticipated time frame to achieve recovery is expected to be prolonged.

The two loans comprising the relationship were related to (1) private investments of the guarantor of the loans and (2) a casino operation located in Western Washington owned in part by the guarantor. These loans were classified as nonaccrual during the first quarter of 2006 after the principal guarantor filed for bankruptcy protection. During the first quarter of 2006, proceeds from liquidation of collateral of $1.5 million and recognition of a partial charge off of $2.4 million reduced the aggregate carrying value of the loans to $2.4 million. AmericanWest Bank will continue to pursue recovery of all amounts due through its membership, participation and key role in the Creditors' Committee in the bankruptcy proceeding and, based on current information provided to the Committee, anticipates ultimately receiving recoveries on a portion of the loans charged-off.

The increased loan loss provision, net of related tax benefit, reduced the previously reported net income for the quarter and nine month period ended September 30, 2006 by $1.5 million or $0.13 per diluted share. On a revised basis, net income for the three and nine months ended September 30, 2006 was $0.9 million or $0.08 per diluted share and $5.4 million or $0.48 per diluted share, respectively. This compares to $3.2 million or $0.30 per diluted share for the three months ended September 30, 2005 and $9.9 million or $0.94 per diluted share for the nine months ended September 30, 2005.

On a revised basis, total nonperforming loans were $9.8 million or 0.83% of total gross loans at September 30, 2006 which is an improvement from $13.6 million or 1.14% of total gross loans as of June 30, 2006 and $14.5 million or 1.50% at December 31, 2005. Total nonperforming assets, including foreclosed real estate and other foreclosed assets, were $10.4 million or 0.76% of total assets at September 30, 2006 which is an improvement from $14.5 million or 1.05% of total assets as of June 30, 2006 and $16.7 million or 1.51% of total assets at December 31, 2005. The consistent improvements in these ratios since December 31, 2005 reflect both the reduction of nonperforming assets and the increase in AWBC's asset base.

The allowance for loan losses was $15.5 million at September 30, 2006 as compared to $14.5 million at June 30, 2006 and $14.4 million at December 31, 2005. At September 30, 2006 the allowance for loan losses as a percentage of total gross loans was 1.31% which compares to 1.22% at June 30, 2006 and 1.49% at December 31, 2005.

On a revised basis, the loan loss provision for the quarter ended September 30, 2006 was $3.7 million and for the nine months it was $5.2 million. This compares to $1.1 million and $2.4 million for the three months and nine months ended September 30, 2005, respectively. The increased loan loss provision in the third quarter is principally attributable to the specific charge off noted above and movement within the risk grades of the portfolio primarily in the agricultural category. For the three months ended September 30, 2006 net charge offs, annualized as a percentage of average gross loans were 0.91% as compared to 0.26% for the three months ended June 30, 2006. For the nine months ended September 30, 2006 and 2005, the annualized net charge offs were 0.73% and 0.69% of total average loans, respectively.

AmericanWest expects to file its Form 10-Q for the period ended September 30, 2006 on a timely basis. Updated financial tables reflecting the adjustments to provision for loan losses and related tax effects and outstanding loans are presented below.

Business Summary:

AmericanWest Bancorporation is a bank holding company whose principal subsidiary is AmericanWest Bank, a community bank with 43 financial centers located in Eastern Washington and Northern Idaho, as well as loan production offices in Ellensburg, Washington and South Jordan, Utah. For further information on the Company or to access Internet banking, please visit our web site at www.awbank.net.

Forward Looking Statements:

This document contains comments and information that constitute "forward-looking statements" (within the meaning of the Private Securities Litigation Reform Act of 1995). The forward-looking statements herein are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by such statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among other things, the following possibilities: a change in general business and economic conditions; changes in the interest rate environment, deposit flows, loan demand, real estate values, and competition; changes in accounting principles, policies or guidelines; changes in legislation and regulation; other economic, competitive, governmental, regulatory, geopolitical and technological factors affecting the companies' operations, pricing and services; legal and other impediments to the recovery of loan balances previously charged-off; and other risk factors referred to from time to time in filings made by the Company with the Securities and Exchange Commission. When used in this document, the words "believes," "estimates," "expects," "should," "anticipates" and similar expressions as they relate to either company or the proposed transaction are intended to identify forward-looking statements. Forward-looking statements speak only as to the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

Additional Information and Where to Find It:

Investors and security holders may obtain and are urged to carefully review and consider AWBC's public filings with the SEC. The documents filed by AWBC with the SEC may be obtained free of charge at AWBC's website at www.awbank.net or at the SEC's website at www.sec.gov. These documents may also be obtained free of charge from AWBC by requesting them in writing at AmericanWest Bancorporation, 41 W. Riverside Avenue, Suite 400, Spokane, Washington 99201, by emailing [e-mail], or by telephone at 509-232-1536.

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The above net interest margin tables include 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%.