AmericanWest Bancorporation Reports Excellent Growth in Assets and Loans; Net Income Equals $2.3 Million or $0.31 Per Diluted Share for 3Q01.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)--Oct. 18, 2001 Stock Buy-back Program Continued AmericanWest Bancorporation (Nasdaq:AWBC AWBC Australian Wine Brandy Corporation ) today reported assets, loans and deposits all continued to show excellent growth over year ago levels. Over the past twelve months total assets increased 11% to $641.6 million; loans rose 19% to $562.4 million; and deposits gained 4% to $524.5 million. "AWBC's profitability continues to be good, despite the weakened weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. economy and reductions in interest rates," said Wes
Colley Col´leyn. 1. See Collie. , President and Chief Executive Officer. Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. rose to $67.0 million, equal to book value of $9.16 per share. Tangible book value was $8.52 per share. "The stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program approved by the Board of Directors in 2000 was completed on September September: see month. 4, 2001 with 732,000 shares repurchased at $7.8 million," said Wes Colley. "The stock repurchase program has been so successful that the board approved a new stock repurchase program in 2001 with 118,661 shares repurchased for $1.4 million. The continuation of the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. program demonstrates our financial strength and confidence in the future," Colley added. Net income for the third quarter of 2001 was $2.3 million or $.31 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 compared to $2.2 million or $.27 per diluted share in the year ago period. For the first nine months of this year, net income was $6.4 million, or $.85 per diluted share compared to $6.0 million, or $0.73 per diluted share a year ago. Results for the first nine months of 2001 included a $391,000 gain on the sale of the insurance agency subsidiary (2Q01), a $156,000 gain on the sale of an investment in a credit card processing company (1Q01), bank subsidiary merger expense of $270,000 (2Q01), and $407,000 of nonperforming loan legal expense (2Q01). The net of these items added $8,000 to net income in 2001. Per share figures have been adjusted for a 10% stock dividend issued February February: see month. 15, 2001. Interest income of $40.3 million was up from the $36.3 million one year ago due to the increase in average loan volume to $525 million from $442 million over the same period last year. Interest expense of $15.3 million was up from the $14.3 million in the prior-year period due to an increase in average interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid liabilities to $464 million from $399 million over the same period. Net interest income of $25 million was up from the $22 million net interest income in 2000. The net interest margin eased slightly to 5.83% in 2001 from 5.87% one year ago. "This is a result of a continuing decline in interest rates compared to the repricing Repricing To change the price of an asset. In derivatives, it sometimes refers to the exchange of options of with different strike prices. repricing frequency of our deposit and loan products," said Wes Colley. AWBC's efficiency ratio, excluding nonrecurring Non`re`cur´ring a. 1. Nonrecurrent; as, the costs of a layoff are considered as a nonrecurring expense s>. items, was 57.73% for 2001 compared to 61.45% for 2000. "We continue to consolidate Consolidate To combine the assets, liabilities, and other financial items of two or more entities into one. Notes: This term is generally used in the context of consolidated financial statements. `back room' operations to improve productivity and efficiency throughout our organization," said Wes Colley. "During 2001 we consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: our subsidiary community banks representing 33 branch locations and combined them into one Bank under the name of AmericanWest Bank, utilizing a single operating platform," Colley added. For 2001, AWBC's return on average assets was 1.38% and the return on average equity was 13.04%, excluding nonrecurring items, compared to 1.49% and 13.01% for the same period one year ago. 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. increased to $18.1 million or 2.83% of total assets in the third quarter of 2001 compared to $8.1 million or 1.41% the year before. "The majority of the nonperforming assets involve five borrowers," said Wes Colley. "We are well secured on a $3.8 million retail/office complex near 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. and two ice skating ice skating, gliding along an ice surface on keellike runners known as ice skates. Skating as a Sport Skating, besides being an important form of winter recreation and the essential skill in the game of ice hockey (see hockey, ice) has developed complexes in Spokane for another $5.2 million. The fourth borrower of $1.2 million is to a restaurant/softball complex, which is well secured and the fifth borrower of $1.0 million is to an orchard orchard, generally an area on which fruit or nut trees are planted and cultivated. The words grove and plantation are often used when the fruits are tropical, e.g., a "citrus grove" or a "banana plantation. operation in the Yakima Yakima, city, United States Yakima (yăk`əmô, –mə), city (1990 pop. 54,827), seat of Yakima co., S central Wash., on the Yakima River just below its confluence with the Naches; inc. 1886. Valley region. We continue to monitor nonperforming credits closely and take remedial action A remedial action is a change made to a nonconforming product or service to address the deficiency. Rework and repair are generally the remedial actions taken on products, while services usually require additional services to be performed to ensure satisfaction. as necessary. An additional $1.1 million was added to the allowance for loan losses this quarter, bringing the total to $6.4 million -- equal to 1.14% of total loans and 39.52% of nonperforming loans at September 30, 2001," said Colley. Founded in 1983, AmericanWest Bancorporation is a regional community bank holding company with 33 branch offices -- 32 in Central and Eastern Washington
FINANCIAL HIGHLIGHTS
(unaudited)($ in thousands except per share)
Third Quarter Ended Year-To-Date
September 30, September 30,
2001 2000 2001 2000
------------------- ---------------------
Interest Income $ 13,616 $13,055 $40,275 $36,315
Interest Expense $ 4,555 $ 5,271 $15,278 $14,301
Net Interest Income $ 9,061 $ 7,784 $24,997 $22,014
Provision for
Loan Losses $ 1,109 $ 352 $ 2,237 $ 996
Noninterest Income $ 1,070 $ 925 $ 3,647 $ 3,011
Noninterest Expense $ 5,545 $ 5,123 $16,728 $15,491
Income Before
Income Tax $ 3,477 $ 3,234 $ 9,679 $ 8,538
Income Tax $ 1,180 $ 1,058 $ 3,248 $ 2,554
Net Income $ 2,297 $ 2,176 $ 6,431 $ 5,984
Basic Earnings
Per Share (b) $ 0.31 $ 0.27 $ 0.85 $ 0.74
Diluted Earnings
Per Share (b) $ 0.31 $ 0.27 $ 0.85 $ 0.73
Basic Earnings
Per Share without
nonrecurring item (b) $ 0.31 $ 0.29 $ 0.86 $ 0.75
Diluted Earnings
Per Share without
nonrecurring items (b) $ 0.31 $ 0.29 $ 0.85 $ 0.75
Basic Weighted
Average Shares
Outstanding (b) 7,394,407 7,984,136 7,524,709 8,109,992
Diluted Weighted
Average Shares
Outstanding (b) 7,459,925 8,028,994 7,585,197 8,163,009
BALANCE SHEET September 30, December 31, September 30,
------------- 2001 2000 2000
-------------- ------------ -------------
Total Assets $ 641,546 $ 598,513 $ 578,264
Loans $ 562,390 $ 493,407 $ 471,913
Deposits $ 524,532 $ 501,426 $ 506,126
Borrowings $ 44,638 $ 27,367 $ 2,954
Shareholders' Equity $ 67,020 $ 64,530 $ 63,893
Book Value Per Share (b) $ 9.16 $ 8.41 $ 8.14
Tangible Book Value
Per Share (b) $ 8.52 $ 7.77 $ 7.45
FINANCIAL RATIOS: September 30, December 31, September 30,
(Annualized) 2001 2000 2000
----------------- ------------- ------------ -------------
Return on Average Assets 1.38% 1.44% 1.46%
Return On Average Assets
without nonrecurring
items (a) 1.38% 1.54% 1.49%
Return on Average Equity 13.02% 12.73% 12.74%
Return on Average Equity
without nonrecurring
items (a) 13.04% 13.91% 13.01%
Efficiency Ratio 58.76% 61.44% 61.04%
Efficiency Ratio without
nonrecurring items (a) 57.73% 60.05% 61.45%
Operating Expense to
Average Assets 3.58% 3.83% 3.77%
Net Interest Margin to
Average Earning Assets 5.83% 5.96% 5.87%
Average Equity to
Average Assets 10.57% 11.32% 11.44%
Equity to Assets Ratio 10.45% 10.78% 11.05%
ALLOWANCE FOR LOAN LOSSES:
--------------------------
($ in thousands, except per share)
September 30, December 31, September 30,
2001 2000 2000
------------- ------------ -------------
Balance Beginning of
Period $ 4,948 $ 4,349 $ 4,349
Provision for Loan
Losses $ 2,237 $ 1,643 $ 996
Net (Charge Offs)/
Recoveries $ (770) $ (1,044) $ (746)
Balance End of Period $ 6,415 $ 4,948 $ 4,599
Allowance for Loan
Losses to Total Loans 1.14% 1.00% 0.97%
Allowance for Loan Loss
to Nonperforming Loans 39.52% 72.80% 69.46%
NONPERFORMING ASSETS:
---------------------
($ in thousands, except per share)
September 30, December 31, September 30,
2001 2000 2000
------------- ------------ --------------
Accruing Loans -
90 days past due $ 3,699 $ 1,339 $ 732
Nonaccrual Loans $ 12,533 $ 5,458 $ 5,889
Total Nonperforming Loans $ 16,232 $ 6,797 $ 6,621
Other Real Estate Owned/
Foreclosed Assets $ 1,914 $ 1,510 $ 1,524
Total Nonperforming
Assets $ 18,146 $ 8,307 $ 8,145
Total Nonperforming
Assets to Total Assets 2.83% 1.39% 1.41%
(a) In the second quarter of 2001 AmericanWest Bancorporation had
nonrecurring income in the form of a gain from the sale of the
insurance agency subsidiary and nonrecurring expense in the form of
bank merger expense and nonperforming loan legal expense. In the first
quarter of 2001, AWBC had a gain on the sale of an investment in a
credit card processing company. In 2000 AWBC had nonrecurring income
from the sale of one branch, real estate and nonrecurring expenses
from the sale of securities, write-off of impaired intangible asset,
write-off of computer equipment and the sale of real estate.
(b) All per share figures have been adjusted for a 10% stock
dividend issued February 15, 2001.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995: Statements in this news release looking forward in
time involve risks and uncertainties, including success in integrating
subsidiaries, consolidation of back office functions, the effect of
changing economic conditions, trends in the interest rate market, and
other risk factors detailed in the company's Securities and Exchange
Commission filings.
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