AmericanWest Bancorporation Completes Record Year.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)--Jan. 29, 2004 AmericanWest Bancorporation (Nasdaq:AWBC AWBC Australian Wine Brandy Corporation ) today announced that net income for the fourth quarter of 2003 increased to $3.5 million, or $.36 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, in comparison to $2.9 million, or $.33 per diluted share, as reported for the fourth quarter of 2002. For the year ending December December: see month. 31, 2003, net income was $14.0 million, or $1.47 per diluted share, compared to $10.9 million, or $1.21 per diluted share, for the same period last year. Per-share figures for 2003 have been adjusted for a 10% stock dividend issued February February: see month. 14, 2003. "2003 was a successful year for AmericanWest that included the integration of Bank of Latah la·tah n. A nervous disorder characterized by an exaggerated physical response to being startled or to unexpected suggestion. , the opening of four new branches, and improved profitability," said Wes Colley Col´ley n. 1. See Collie. , 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. . "We are looking forward to 2004 as we explore opportunities to strengthen our profitability and continue our growth." Total assets at December 31, 2003, increased to $1.0 billion from $916.8 million at December 31, 2002. Loans rose to $863.7 million from $764.9 million at December 31, 2002. Deposits increased to $871.1 million at year-end 2003, compared to $766.3 million the year before. Net interest income of $15.2 million for the fourth quarter of 2003 increased from $12.8 million in net interest income reported for the fourth quarter of 2002. Similarly, net interest income for the year ending December 31, 2003, increased to $56.8 million from $44.1 million for the same period last year. The increase in net interest income was due to the 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 related to the acquisition of Latah Bancorporation, internal growth, and a lower cost of funds Cost of Funds The interest rate paid on an outstanding loan. Notes: Money isn't free! Cost of funds is the cost of borrowing money. See also: Interest Rate Cost of funds Interest rate associated with borrowing money. . The net interest margin for the year-end 2003 increased to 6.47% from 6.18% one year ago. The increase is due to a decrease in the cost of funds, which was offset by a decrease in earning asset Earning asset An asset that generates income, e.g., income from rental property. yields. Noninterest income decreased slightly to $1.5 million for the fourth quarter of 2003, compared to $1.6 million for the same period last year. Noninterest income for the year ending December 31, 2003, increased to $6.2 million, compared to $5.4 million one year ago. The increase for the year is primarily attributed to the acquisition of Latah Bancorporation and its subsidiary, Bank of Latah, along with increased service fees and mortgage banking activity. Noninterest expense increased to $8.7 million in the fourth quarter of 2003 and $35.1 million for the year ending December 31, 2003 from $8.0 million and $27.6 million in the same period last year, respectively. These increases are primarily due to the acquisition of Latah Bancorporation and its subsidiary, Bank of Latah, in the third quarter of 2002 and increased incentive compensation. "AWBC's corporate efficiency ratio remained stable at 55.8% compared to 55.7% in 2002," said Colley. "We continue to consolidate 'back room' operations to improve productivity and efficiency throughout our organization." Total 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. decreased to $19.9 million, or 1.95% of total assets in 2003, compared to $21.4 million, or 2.34% of total assets in 2002. The allowance for loan losses was $12.5 million -- equal to 1.42% of total loans at December 31, 2003, compared to 1.32% at December 31, 2002. Shareholder equity rose to $96.2 million at December 31, 2003, compared to $81.1 million at the end of 2002. In 2003, AWBC repurchased 61,960 shares for $1.1 million. For the year ended 2003, return on average assets was 1.47%. Return on average equity was 15.87% in 2003. AmericanWest Bancorporation is a community bank holding company with 41 branch offices -- 33 in Central and Eastern Washington
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 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 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 PLSRA'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.
FINANCIAL HIGHLIGHTS
-------------------- Fourth Quarter Ended Year Ended
(unaudited) December 31, December 31,
($ in thousands except per share) 2003 2002 2003 2002
--------------------------------------
Interest Income $18,714 $16,912 $71,248 $59,202
Interest Expense $ 3,469 $ 4,162 $14,486 $15,110
Net Interest Income $15,245 $12,750 $56,762 $44,092
Provision for Loan Losses $ 2,741 $ 1,843 $ 6,324 $ 5,663
Noninterest Income $ 1,486 $ 1,584 $ 6,176 $ 5,384
Noninterest Expense $ 8,654 $ 8,022 $35,120 $27,560
Income Before Income Tax $ 5,336 $ 4,469 $21,494 $16,253
Income Tax $ 1,875 $ 1,559 $ 7,508 $ 5,354
Net Income $ 3,461 $ 2,910 $13,986 $10,899
Basic Earnings Per Share (a) $ 0.38 $ 0.33 $ 1.53 $ 1.25
Diluted Earnings Per Share (a) $ 0.36 $ 0.31 $ 1.47 $ 1.21
Basic Weighted Average Shares
Outstanding (a) 9,169 8,873 9,133 8,750
Diluted Weighted Average Shares
Outstanding (a) 9,521 9,357 9,522 9,014
BALANCE SHEET December 31, 2003 December 31, 2002
------------- ----------------- -----------------
Total Assets $1,021,779 $ 916,831
Net Loans $ 863,718 $ 764,938
Securities $ 40,726 $ 48,173
Deposits $ 871,125 $ 766,335
Borrowings $ 47,471 $ 63,696
Shareholders' Equity $ 96,198 $ 81,130
Book Value Per Share (a) $ 10.45 $ 9.12
Tangible Book Value Per Share (a) $ 8.83 $ 7.41
FINANCIAL RATIOS: (Annualized) December 31, 2003 December 31, 2002
----------------- ----------------- -----------------
Return on Average Assets 1.47% 1.41%
Return on Average Equity 15.87% 15.08%
Efficiency Ratio 55.80% 55.70%
Operating Expense to Average Assets 3.70% 3.55%
Net Interest Margin to Average Earning
Assets 6.47% 6.18%
ALLOWANCE FOR LOAN LOSSES:
--------------------------
($ in thousands) December 31, 2003 December 31, 2002
----------------- -----------------
Balance Beginning of Period $ 10,272 $ 6,624
Balances Acquired $ - $ 878
Provision for Loan Losses $ 6,324 $ 5,663
Net Charge Offs $ (4,143) $ (2,893)
Balance End of Period $ 12,453 $ 10,272
Allowance for Loan Losses to
Total Loans 1.42% 1.32%
Allowance for Loan Losses to
Nonperforming Loans 99.40% 75.76%
NONPERFORMING ASSETS:
---------------------
($ in thousands) December 31, 2003 December 31, 2002
Accruing Loans -- 90 days past due $ 43 $ 244
Nonaccrual Loans $ 12,485 $ 13,315
Total Nonperforming Loans $ 12,528 $ 13,559
Foreclosed Assets $ 7,408 $ 7,873
Total Nonperforming Assets $ 19,936 $ 21,432
Total Nonperforming Assets to Total
Assets 1.95% 2.34%
(a) All per-share figures have been adjusted for a 10% stock
dividend February 14, 2003.
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