AmericanWest Bancorporation Announces Third 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 third quarter of 2004 and for 2004 year to date. Net income was $4.0 million for the three months ended September September: see month. 30, 2004, compared to $3.7 million for the three months ended September 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 $0.38 compared to $0.35 for the three months ended September 30, 2003. For the nine months ended September 30, 2004, net income was $8.8 million compared to $10.5 million for the first nine months of 2003. Diluted earnings per share were $0.84 for the first nine months of 2004 compared $1.00 in 2003. On September 20, 2004, AmericanWest Bancorporation and its subsidiary, AmericanWest Bank announced the appointment of 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
"The Company's performance in the third quarter was in line with our expectations," said Mr. Daugherty. "We continue to concentrate on our credit culture and related performance. Improving our asset quality will be our focus for the foreseeable fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. future. I am excited about the prospects for this company's future." During the three months ended June June: see month. 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 $618 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 nine months ended September 30, 2004, would have been approximately $11.0 million. Diluted earnings per share, on a pro forma basis, was $1.05 for the nine months ended September 30, 2004. LOAN GROWTH AND CREDIT QUALITY: At September 30, 2004, gross loans were $952.3 million, an increase of 13.1% compared to September 30, 2003, and an increase of 8.7% from December December: see month. 31, 2003. The increases were mainly due to increases in commercial real estate loans, commercial and industrial loans, and real estate construction. Commercial real estate loans, commercial and industrial loans, and agricultural loans comprised 88.4% of the gross loan portfolio at September 30, 2004, similar to 87.8% of the gross loan portfolio at December 31, 2003, and 87.0% at September 30, 2004. Total nonperforming loans were $16.7 million or 1.8% of total gross loans at September 30, 2004, compared to $12.5 million or 1.4% of total gross loans at December 31, 2003. At September 30, 2003, the total nonperforming loans were $13.9 million or 1.7% of total gross loans. The recent increase in nonperforming loans is mainly due to $5.2 million in loans to a single borrower being classified as non-accruing. This entity continues to operate, and the Company is undergoing an evaluation of the entity's long term plan and related collateral collateral (kəlăt`ərəl), something of value given or pledged as security for payment of a loan. Collateral consists usually of financial instruments, such as stocks, bonds, and negotiable paper, rather than physical goods, although coverage. Allowance for loan losses was $15.0 million for September 30, 2004, compared to $12.5 million at December 31, 2003 and $11.8 million at September 30, 2003. The allowance constituted 1.57% and 1.42% of total gross loans at September 30, 2004 and December 31, 2003, respectively. At September 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. , including its foreclosed real estate and other foreclosed assets were $23.7 million or 2.07% of total assets at September 30, 2004 compared to $19.9 million or 1.95% of total assets at December 31, 2003 and $22.5 million or 2.27% of total assets at September 30, 2003. DEPOSIT GROWTH: At September 30, 2004, deposits were $922.9 million, up 5.5% from $874.6 million at September 30, 2003. At December 31, 2003 total deposits were $871.1 million. The increase from September 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 decreased to 1.61% for the nine months ended September 30, 2004, as compared to 2.02% for the nine months ended September 30, 2003, due to lower interest rates. NET INTEREST MARGIN: Net interest margin decreased to 6.22% for the nine months ended September 30, 2004, compared to 6.43% for the nine months ended September 30, 2003. This decrease was due to a decrease on loan yields which were partially offset by an increase in investment yields and decreases in deposit and borrowing costs. An increase in the average balances of the investment portfolio and borrowings portfolio also contributed to the decrease in the net interest margin. Higher yielding certificates of deposits constituted 31% of the deposit mix at September 30, 2004 and 38% of the mix at September 30, 2003, while the lower yielding NOW and savings account Savings Account A deposit account intended for funds that are expected to stay in for the short term. A savings account offers lower returns than the market rates. Notes: balances increased to 50% of the mix as compared to 44% in the prior year. Net interest income increased 9.9% to $16.1 million for the three months ended September 30, 2004, as compared to $14.6 million for the three months ended September 30, 2003. Net interest income for the nine months ended September 30, 2004 and 2003 was $45.4 million and $41.5 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 September 30, 2004 in comparison to September 30, 2003. NONINTEREST INCOME AND EXPENSE: Noninterest income was $1.9 million for the three months ended September 30, 2004, an increase from $1.6 million for the three months ended September 30, 2003. The nine months ended September 30, 2004 resulted in $6.1 million in noninterest income in comparison to $4.7 million for the nine months ended September 30, 2003. The results for the nine months ended September 30, 2004 include $618 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 $15.1 million in deposits. The remainder of the increase for the three months and nine months ended September 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 $10.0 million for the three months ended September 30, 2004 from $9.0 million for the three months ended September 30, 2003. For the nine months ended September 30, 2004, noninterest expense was $30.1 million compared to $26.5 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 nine months ended September 30, 2004 has decreased as a percentage of income before income taxes to 31.5% compared to 34.9% for the nine months ended September 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 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 nine months ended September 30, 2004 would have been 35.9%. 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 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 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 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) ), 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 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 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 9 months ended
-------------------- ------------------------------
Pro forma (2)
Statement of
Income Data 9/30/2004 9/30/2003 9/30/2004 9/30/2004 9/30/2003
Interest Income $19,789 $18,166 $55,538 $55,538 $52,533
Interest Expense 3,737 3,561 10,165 10,165 11,017
Net Interest Income
before Provision 16,052 14,605 45,373 45,373 41,516
Provision for Loan
Losses 1,788 1,597 8,498 4,498 3,583
Net Interest Income
after Provision 14,264 13,008 36,875 40,875 37,933
Noninterest Income 1,876 1,623 6,069 5,451 4,690
Noninterest Expense 9,976 8,995 30,124 30,124 26,467
Income Before
Income Tax 6,164 5,636 12,820 16,202 16,156
Income Tax 2,186 1,926 4,037 5,221 5,632
Net Income $3,978 $3,710 $8,783 $10,981 $10,524
3 months ended 9 months ended
---------------------- ---------------------------------
Pro forma (2)
Share Data (1) 9/30/2004 9/30/2003 9/30/2004 9/30/2004 9/30/2003
Basic earnings
per share $0.39 $0.37 $0.86 $1.08 $1.05
Diluted
earnings per
share $0.38 $0.35 $0.84 $1.05 $1.00
Basic weighted
average
shares
outstanding 10,191,775 10,057,546 10,177,990 10,177,990 10,051,121
Diluted
weighted
average
shares
outstanding 10,438,276 10,534,171 10,477,819 10,477,819 10,473,991
9 months ended
--------------------
Financial Ratios, annualized 9/30/2004 9/30/2003
Return on average assets 1.10% 1.50%
Return on average equity 11.70% 16.24%
Efficiency ratio 58.56% 57.28%
Noninterest expenses to average assets 3.76% 3.78%
Net interest margin to average earning assets 6.22% 6.43%
(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 $618,000
which occurred during the nine month period ended September 30, 2004.
AmericanWest Bancorporation
Selected Consolidated Financial Highlights
($ in thousands, except per share data and ratios; unaudited)
Statement of Condition Data 9/30/2004 9/30/2003 12/31/2003
Securities $106,035 $41,535 $40,726
Loans, gross 952,296 842,285 876,390
Total assets 1,146,984 994,602 1,023,907
Deposits 922,880 874,609 871,125
Shareholders' equity 104,388 92,326 96,198
Loan Portfolio 9/30/2004 9/30/2003 12/31/2003
Commercial real estate $503,891 $432,024 $461,538
Commercial and industrial 204,039 173,778 183,618
Agricultural 133,757 127,091 124,395
Real estate construction 42,328 32,566 32,236
Real estate mortgage 35,211 39,110 38,075
Installment 23,988 29,396 26,850
Bank cards and other 9,082 8,320 9,678
--------------------------------
Total loans, gross $952,296 $842,285 $876,390
--------------------------------
Allowance for loan losses (14,978) (11,841) (12,453)
Deferred loan fees, net of
deferred costs (157) (241) (219)
--------------------------------
Total loans, net $937,161 $830,203 $863,718
--------------------------------
Deposit Portfolio 9/30/2004 9/30/2003 12/31/2003
Noninterest bearing demand
deposits $172,167 $150,679 $159,425
Interest bearing deposits:
NOW and savings accounts 464,526 387,312 399,726
Time, $100,000 and over 117,802 167,767 127,117
Other time 168,385 168,851 184,857
--------------------------------
Total deposits $922,880 $874,609 $871,125
--------------------------------
3 months ended 9 months ended
Allowance for loan losses: 9/30/2004 9/30/2003 9/30/2004 9/30/2003
Balance, beginning of period $14,011 $11,599 $12,453 $10,272
Provision for loan losses 1,788 1,597 8,498 3,583
Net charge-offs (821) (1,355) (5,973) (2,014)
------------------------------------------
Balance, end of period $14,978 $11,841 $14,978 $11,841
------------------------------------------
Allowance for loan loss to
total loans 1.57% 1.41% 1.57% 1.41%
Nonperforming assets: 9/30/2004 9/30/2003 12/31/2003
Accruing loans over 90 days
past due $1,909 $1,515 $43
Nonaccrual loans 14,774 12,350 12,485
Total nonperforming loans 16,683 13,865 12,528
Foreclosed real estate and
other foreclosed assets 7,046 8,676 7,408
Total nonperforming assets $23,729 $22,541 $19,936
Ratio of total nonperforming
assets to total assets 2.07% 2.27% 1.95%
Ratio of total nonperforming
loans to total gross loans 1.75% 1.65% 1.43%
Ratio of allowance for loan
loss to nonperforming loans 89.78% 85.40% 99.40%
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