AmericanWest Bancorporation Announces Second Quarter Earnings.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 the financial results for the second quarter of 2004 and for 2004 year to date. Net income was $1.3 million for the three months ended June June: see month. 30, 2004 compared to $3.6 million for the three months ended June 30, 2003, while 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 were $0.12 compared to $0.34 for the three months ended June 30, 2003. For the six months ended June 30, 2004, net income was $4.8 million compared to $6.8 million for the first six months of 2003. Diluted earnings per share were $0.46 for the first six months of 2004 compared $0.65 in 2003. During the three months ended June 30, 2004 the company recorded a $4.0 million, pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta , additional loan loss provision which AWBC originally announced on May 20, 2004 and a gain on the divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of a single branch in the amount of $621 thousand, pre-tax. On a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis without these two events, the net income for the three months ended June 30, 2004 was $3.5 million and $7.0 million for the six months ended June 30, 2004. Diluted earnings per share, on a pro forma basis, were $0.33 for the three months ended June 30, 2004 and $0.67 for the six months ended June 30, 2004. "During the second quarter, we completed the previously-announced, additional charge off related to a single 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 . We are working to bring this relationship to a final resolution and we are continuing to focus on improving our credit performance," said Wes Colley Col´ley n. 1. See Collie. , President and Chief Executive Officer, "In addition, during the quarter we sold a branch that was in a remote location and opened our new 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. location, which we believe increases our strength in one of our major markets." LOAN GROWTH AND CREDIT QUALITY: At June 30, 2004, the gross loans were $921.1 million, an increase of 11.8% compared to June 30, 2003, and an increase of 5.1% from December December: see month. 31, 2003. The increases were mainly due to increases in commercial and industrial loans and agricultural loans. The loan portfolio consisted of 73% commercial and industrial loans and 15% agricultural loans at June 30, 2004. These classifications were 74% and 14%, respectively at December 31, 2003 and 70% and 16%, respectively at June 30, 2003. The commercial and industrial loan category includes commercial real estate. Total nonperforming loans were $8.9 million or 1.0% of total gross loans at June 30, 2004 compared to $12.5 million or 1.4% of total gross loans at December 31, 2003. At June 30, 2003, the total nonperforming loans were $13.6 million or 1.7% of total gross loans. Allowance for loan losses was $14.0 million for June 30, 2004 and $12.5 million December 31, 2003 in comparison to $11.6 million at June 30, 2003. This constituted 1.52% and 1.42% of total gross loans at June 30, 2004 and December 31, 2003, respectively. At June 30, 2003, allowance for loan losses was 1.41% 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 $17.5 million or 1.61% of total assets at June 30, 2004 compared to $19.9 million or 1.95% at December 31, 2003 and $22.2 million or 2.32% at June 30, 2003. DEPOSIT GROWTH: At June 30, 2004, deposits were $858.0 million, up 6.6% from $804.8 million at June 30, 2003. At December 31, 2003 total deposits were $871.1 million. The increase from June 30, 2003 is due mainly to an increase in money market accounts offset by a decrease in time deposits, mainly in the $100,000 and over category. The cost of deposits has decreased to 1.60% for the six months ended June 30, 2004 as compared to 2.06% for the six months ended June 30, 2003. NET INTEREST MARGIN: Net interest margin decreased to 6.30% for the six months ended June 30, 2004 compared to 6.40% for the six months ended June 30, 2003. Net interest income increased 9.7% to $15.2 million for the three months ended June 30, 2004 as compared to $13.9 million for the three months ended June 30, 2003. Net interest income for the six months ended June 30, 2004 and 2003 was $29.3 million and $26.9 million respectively. These increases were due mainly to an increase in earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin at June 30, 2004 in comparison to June 30, 2003. NONINTEREST INCOME AND EXPENSE: Noninterest income was $2.7 million for the three months ended June 30, 2004, an increase from $1.6 million for the three months ended June 30, 2003. The six months ended June 30, 2004 resulted in $4.2 million in noninterest income in comparison to $3.1 million for the six months ended June 30, 2003. The results for the three months ended and six months ended June 30, 2004 include $621 thousand related to the divestiture of a branch and related deposits in Ione, Washington Ione is a town in Pend Oreille County, Washington, United States. The population was 479 at the 2000 census. History Ione was officially incorporated on January 11, 1910. Geography Ione is located at (48.740540, -117. that contained approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $15 million in deposits. The remainder of the increase for the three months and six months ended June 30, 2004 in comparison to 2003 relate to gains on sales of 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 , 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 and increases in fees and service charges. Noninterest expense increased to $10.2 million for the three months ended June 30, 2004 from $8.8 million for the three months ended June 30, 2003. For the six months ended June 30, 2004, noninterest expense was $20.1 million compared to $17.5 million during the like period a year ago. The increase in noninterest expense was primarily due to increases in compensation expense and expenses related to foreclosed real estate and other foreclosed assets. INCOME TAXES: Income tax expense for the six months ended June 30, 2004 has decreased as a percentage of income before income taxes to 27.8% compared to 35.2% for the six months ended June 30, 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 ended March 31, 2004 causing the effective tax rate to decrease. Without the effect of the historical rehabilitation tax credits, the effective tax rate for the six months ended June 30, 2004 would have been 36.4%. 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
-------------------------------------------
Pro forma (2)
Statement of Income Data June 30, 2004 June 30, 2004 June 30, 2003
Interest Income $18,443 $18,443 $17,583
Interest Expense $3,230 $3,230 $3,713
Net Interest Income $15,213 $15,213 $13,870
Provision for Loan Losses $5,710 $1,710 $1,120
Noninterest Income $2,654 $2,033 $1,622
Noninterest Expense $10,176 $10,176 $8,814
Income Before Income Tax $1,981 $5,360 $5,558
Income Tax $713 $1,876 $1,955
Net Income $1,268 $3,484 $3,603
3 months ended
-------------------------------------------
Pro forma (2)
Share Data (1) June 30, 2004 June 30, 2004 June 30, 2003
Basic earnings per share $0.12 $0.34 $0.36
Diluted earnings per share $0.12 $0.33 $0.34
Basic weighted average
shares outstanding 10,205,436 10,205,436 10,084,905
Diluted weighted average
shares outstanding 10,525,173 10,525,173 10,477,660
6 months ended
-------------------------------------------
Pro forma (2)
Financial Ratios, June 30, 2004 June 30, 2004 June 30, 2003
annualized
Return on average assets 0.93% 1.36% 1.47%
Return on average equity 9.68% 14.14% 16.21%
Efficiency ratio 60.12% 61.25% 58.28%
Noninterest expenses to
average assets 3.92% 3.92% 3.40%
Net interest margin to
average earning assets 6.30% 6.30% 6.40%
6 months ended
--------------------------------------------
Pro forma (2)
Statement of Income Data June 30, 2004 June 30, 2004 June 30, 2003
Interest Income $35,749 $35,749 $34,367
Interest Expense $6,428 $6,428 $7,456
Net Interest Income $29,321 $29,321 $26,911
Provision for Loan Losses $6,710 $2,710 $1,986
Noninterest Income $4,193 $3,572 $3,067
Noninterest Expense $20,148 $20,148 $17,471
Income Before Income Tax $6,656 $10,035 $10,521
Income Tax $1,851 $3,014 $3,707
Net Income $4,805 $7,021 $6,814
6 months ended
--------------------------------------------
Pro forma (2)
Share Data (1) June 30, 2004 June 30, 2004 June 30, 2003
Basic earnings per share $0.47 $0.69 $0.68
Diluted earnings per share $0.46 $0.67 $0.65
Basic weighted average
shares outstanding 10,168,811 10,168,811 9,993,800
Diluted weighted average
shares outstanding 10,514,957 10,514,957 10,443,736
(1) All per share figures have been adjusted for a 10% stock dividend
paid February 20, 2004.
(2) Pro forma amounts exclude a significant write-off of $4.0 million
and a gain on the sale of a branch of approximately $621,000 which
occurred during the quarter ended June 30, 2004.
AmericanWest Bancorporation
Selected Consolidated Financial Highlights
($ in thousands, except per share data and ratios; unaudited)
Statement of Condition Data June 30, June 30, December 31,
2004 2003 2003
Securities $76,482 $39,143 $40,726
Loans, gross $921,099 $823,770 $876,390
Total assets $1,086,051 $955,068 $1,023,907
Deposits $857,955 $804,818 $871,125
Shareholders' equity $100,393 $88,704 $96,198
Loan Portfolio June 30, June 30, December 31,
2004 2003 2003
Commercial and industrial $672,125 $579,672 $645,156
Agricultural 137,736 134,848 124,395
Real estate mortgage 37,805 42,650 38,075
Real estate construction 34,567 28,248 32,236
Installment 24,651 29,398 26,850
Bank cards and other 14,215 8,954 9,678
-------------------------------
Total loans, gross $921,099 $823,770 $876,390
-------------------------------
Allowance for loan losses (14,011) (11,599) (12,453)
Deferred loan fees, net of
deferred costs (170) (276) (219)
-------------------------------
Total loans, net $906,918 $811,895 $863,718
-------------------------------
Deposit Portfolio June 30, June 30, December 31,
2004 2003 2003
Noninterest bearing demand
deposits $152,205 $131,847 $159,425
Interest bearing deposits:
NOW and savings accounts 451,543 337,628 399,726
Time, $100,000 and over 85,178 150,043 127,117
Other time 169,029 185,300 184,857
-------------------------------
Total deposits $857,955 $804,818 $871,125
-------------------------------
3 months ended 6 months ended
Allowance for loan losses: June 30, June 30, June 30, June 30,
2004 2003 2004 2003
Balance, beginning of period $12,505 $10,873 $12,453 $10,272
Provision for loan losses $5,710 $1,120 $6,710 $1,986
Net charge-offs ($4,204) ($394) ($5,152) ($659)
---------------------------------------
Balance, end of period $14,011 $11,599 $14,011 $11,599
---------------------------------------
Allowance for loan loss to
total loans 1.52% 1.41% 1.52% 1.41%
Nonperforming assets: June 30, June 30, December 31,
2004 2003 2003
Accruing loans over 90 days
past due $771 $1,089 $43
Nonaccrual loans $8,137 $12,470 $12,485
Total nonperforming loans $8,908 $13,559 $12,528
Foreclosed real estate and
other foreclosed assets $8,627 $8,619 $7,408
Total nonperforming assets $17,535 $22,178 $19,936
Ratio of total nonperforming
assets to total assets 1.61% 2.32% 1.95%
Ratio of total nonperforming
loans to total gross loans 0.97% 1.65% 1.43%
Ratio of allowance for loan
loss to nonperforming loans 157.29% 85.54% 99.40%
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion