Exhibit 99.1

AWBC – Q2 2005 Earnings

July 21, 2005

Page 1 of 8

AMERICANWEST BANCORPORATION

CONTACT:	Robert M. Daugherty	President and CEO
	Diane L. Kelleher	Chief Financial Officer
		(509) 467-6993

NEWS RELEASE

AMERICANWEST BANCORPORATION ANNOUNCES 2005 SECOND QUARTER RESULTS

Spokane, Washington – July 21, 2005 – AmericanWest Bancorporation (Nasdaq:AWBC) today announced that net income for the second quarter of 2005 was $3.5 million or $0.34 per diluted share, 179.3% higher than $1.3 million or $0.12 per diluted share for the second quarter of 2004. The year to date income for 2005 was $6.7 million or $0.64 per diluted share, 39.0% higher than $4.8 million or $0.46 per diluted share in 2004.

“Our second quarter earnings were well above the prior years’ results and the upward trend is continuing. We achieved a significant reduction in our nonperforming assets this quarter, from $33 million at March 31, 2005 to $19 million at June 30, 2005, a 44% reduction. Very good progress has been made in all areas of the Bank over the last three quarters as we return to our community banking foundation,” said Robert M. Daugherty, President and Chief Executive Officer.

LOAN GROWTH AND CREDIT QUALITY:

Gross loans increased $57.8 million or 6.2% at June 30, 2005 to $985.6 million compared to $927.9 million at December 31, 2004. This includes an increase of $62.7 million or 12.6% in commercial real estate loans during the year, offset by small fluctuations in other categories. A majority of this increase was due to multi-family loan purchases which occurred late in June of 2005. Commercial real estate loans continue to be a significant percentage of the total portfolio at 56.8% as of June 30, 2005 compared to 53.6% at December 31, 2004.

Total nonperforming loans were $15.5 million or 1.6% of total gross loans at June 30, 2005 compared to $31.4 million or 3.5% of total gross loans at March 31, 2005, a 50.5% reduction for the quarter, and compared to $24.3 million or 2.6% of total gross loans at December 31, 2004. The $15.8 million decrease in nonperforming loans during this past quarter is due primarily to the repayment, with interest, of a $6.2 million nonaccruing loan, the return of $5.4 million in loans to accrual status following remediation of the underlying issues, the repayment of $1.9 million in loans and the transfer into foreclosed real estate and other foreclosed assets of a land secured loan in the amount of $1.3 million together with other smaller loan resolutions. The Company’s total nonperforming assets, including foreclosed real estate and other foreclosed assets, were $18.7 million or 1.7% of total assets at June 30, 2005 compared to $33.3 million or 3.3% of total assets at March 31, 2005 and $28.5 million or 2.7% of total assets at December 31, 2004.

AWBC – Q2 2005 Earnings

July 21, 2005

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Allowance for loan losses was $15.4 million for June 30, 2005 compared to $18.5 million at December 31, 2004. At June 30, 2005 the allowance for loan losses as a percentage of total gross loans was 1.56% as compared to the June 30, 2004 allowance of 1.52%. The December 31, 2004 allowance was 1.99%, the decline to the levels at June 30, 2005 is due to the resolution of various nonperforming loans in line with the provisions provided during the six months ended June 30, 2005. Provision for loan losses for the three and six months ended June 30, 2005 was $0.2 million and $1.3 million, respectively. These are compared to $5.7 million and $6.7 million for the three and six months ended June 30, 2004, respectively. The June 30, 2004 provision included a specific provision of $4.0 million related to one borrower relationship. Loan charge offs for the three months ended June 30, 2005 were $1.8 million compared to $4.7 million for the three months ended June 30, 2004. Loan charge offs for the six months ended June 30, 2005 were $4.5 million compared to $5.7 million for the six months ended June 30, 2004.

DEPOSIT AND BORROWING BALANCES:

Deposits were $848.2 million as of June 30, 2005, which is down $46.6 million or 5.2% from $894.8 million at December 31, 2004. The decrease is mainly due to lower interest bearing deposit balances, which were partially offset by higher demand deposit balances. The cost of deposits increased to 1.93% for the six month period ended June 30, 2005 compared to 1.60% for the similar period ended June 30, 2004 due to higher interest rates reflecting increases in rates by the Federal Reserve Board.

Short-term borrowings were $124.2 million as of June 30, 2005, which is an increase of $99.7 million from $24.5 million at December 31, 2004. Long-term borrowings were $3.3 million at June 30, 2005, which is a decrease of $2.4 million from December 31, 2004. Overall, borrowings have increased to replace the decline in deposit balances and to support asset growth.

NET INTEREST MARGIN:

Net interest margin decreased to 5.87% for the six month period through June 30, 2005 compared to 6.34% for the similar period of 2004. This decrease was primarily due to an increase in deposit and borrowing costs related to rising market rates. Loan yields have also declined related to improving credit quality in new loan originations.

Net interest income decreased 9.4% or $1.4 million to $13.8 million for the three months ended June 30, 2005, as compared to $15.2 million for the three months ended June 30, 2004. This decrease was primarily due to the increase in interest expense on deposits and borrowings of $0.7 million and $0.2 million, respectively. In addition, a decrease in loan income of $0.4 million and investment income of $0.2 million contributed to the decrease in net interest income. Net interest income for the six months ended June 30, 2005 was $27.5 million, a decrease of 6.1% or $1.8 million, from $29.3 million at June 30, 2004. This decrease is mainly due to the increase in interest expense on deposits and borrowings of $0.8 million and $0.5 million, respectively.

NONINTEREST INCOME AND EXPENSE:

Noninterest income was $1.6 million for the three months ended June 30, 2005, a decrease from $2.7 million for the three months ended June 30, 2004. Noninterest income was $3.1 million for the six months ended June 30, 2005 compared to $4.2 million for the similar period in 2004. This decrease is mainly due to the gain on divesture of a branch in 2004 which was recorded at $0.6 million and gains on the sale of foreclosed real estate and other foreclosed assets which have decreased approximately $0.3 million from the prior year.

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July 21, 2005

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Noninterest expense decreased modestly by $0.3 million or 3.0% to $9.9 million for the three months ended June 30, 2005 from $10.2 million for the three months ended June 30, 2004. This change is mainly due to foreclosed real estate and other foreclosed assets expense decreasing $0.6 million for the three month period. Write downs of $0.8 million in the three month period ending June 30, 2004, which did not occur in the three month period ending June 30, 2005, explain this difference. The noninterest expense for the six months ended June 30, 2005 decreased $0.8 million or 3.8% to $19.4 million as compared to $20.1 million for the similar period in 2004. This decrease is mainly due to a decrease in foreclosed real estate and other foreclosed assets expense of $1.4 million for the six month period which was caused by $1.5 million of write downs in 2004, offset slightly by other foreclosed real estate and other foreclosed asset activity.

INCOME TAXES:

The effective tax rate for the six months ended June 30, 2005 was 33.2% as compared to 27.8% for the six months ended June 30, 2004. The increase in the tax rate is due to tax credits taken in 2004.

AmericanWest Bancorporation is a community bank holding company with 42 locations in Eastern and Central Washington and Northern Idaho. For further information on the Company or to access Internet banking, please visit our web site at www.awbank.net.

FORWARD LOOKING STATEMENTS:

This press release contains certain forward-looking statements within the Private Securities Litigation Reform Act of 1995 (PSLRA). Such forward looking statements include but are not limited to, that an upward trend in earnings will continue and that the Company will continue to make progress in its business areas. 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 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 of the Company’s market, fluctuation 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. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances. This statement is included for the express purpose of protecting the Company under PSLRA’s safe harbor provisions.

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AWBC – Q2 2005 Earnings

July 21, 2005

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AmericanWest Bancorporation

Selected Consolidated Financial Highlights

($ in thousands, except per share data and ratios; unaudited)

	Three Months Ended				Six Months Ended
	6/30/2005		6/30/2004		6/30/2005		6/30/2004
Statement of Income Data
Interest Income
Interest and fees on loans	$	17,513	$	17,873	$	34,496	$	34,689
Interest on securities		328		555		671		1,013
Other interest income		21		15		31		47
Total Interest Income		17,862		18,443		35,198		35,749
Interest Expense
Interest on deposits		3,460		2,802		6,487		5,703
Interest on borrowings		612		428		1,180		725
Total Interest Expense		4,072		3,230		7,667		6,428
Net Interest Income		13,790		15,213		27,531		29,321
Provision for loan losses		190		5,710		1,265		6,710
Net Interest Income After Provision for Loan Losses		13,600		9,503		26,266		22,611
Noninterest Income
Fees and service charges		1,213		1,218		2,336		2,351
Other		352		1,436		794		1,842
Total Noninterest Income		1,565		2,654		3,130		4,193
Noninterest Expense
Salaries and employee benefits		5,554		5,829		11,103		11,420
Occupancy expense, net		772		714		1,817		1,469
Equipment expense		715		626		1,519		1,305
State business and occupation tax		226		191		449		399
Foreclosed real estate and other foreclosed assets expense		353		957		419		1,776
Other		2,246		1,859		4,085		3,779
Total Noninterest Expense		9,866		10,176		19,392		20,148
Income Before Provision for Income Tax		5,299		1,981		10,004		6,656
Provision for Income Tax		1,757		713		3,323		1,851
Net Income	$	3,542	$	1,268	$	6,681	$	4,805

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July 21, 2005

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AmericanWest Bancorporation

Selected Consolidated Financial Highlights

($ in thousands, except per share data and ratios; unaudited)

	Three Months Ended				Six Months Ended
	6/30/2005		6/30/2004		6/30/2005		6/30/2004
Share Data:
Basic earnings per share	$	0.34	$	0.12	$	0.65	$	0.47
Diluted earnings per share	$	0.34	$	0.12	$	0.64	$	0.46
Basic weighted average shares outstanding		10,387,957		10,205,436		10,355,891		10,168,811
Diluted weighted average shares outstanding		10,530,674		10,525,173		10,506,664		10,514,957

	Six Months Ended
	6/30/2005		6/30/2004
Financial Ratios, annualized:
Return on average assets	1.30	%	0.93	%
Return on average equity	12.29	%	9.68	%
Efficiency ratio	63.25	%	60.12	%
Noninterest expenses to average assets	3.77	%	3.91	%
Net interest margin to average earning assets	5.87	%	6.34	%

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AWBC – Q2 2005 Earnings

July 21, 2005

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AmericanWest Bancorporation

Selected Consolidated Financial Highlights

($ in thousands, except per share data and ratios; unaudited)

	6/30/2005		12/31/2004		$ Change			% Change
Consolidated Statement of Condition
Cash and due from banks	$	32,479	$	26,915	$	5,564		20.7	%
Overnight interest bearing deposits with other banks		304		2,302		(1,998	)	-86.8	%
Cash and cash equivalents		32,783		29,217		3,566		12.2	%
Securities		29,292		33,886		(4,594	)	-13.6	%
Loans, net of allowance for loan losses of $15,377 and $18,475, respectively		970,940		909,255		61,685		6.8	%
Accrued interest receivable		6,582		6,520		62		1.0	%
Premises and equipment, net		23,623		23,955		(332	)	-1.4	%
Foreclosed real estate and other foreclosed assets		3,222		4,201		(979	)	-23.3	%
Life insurance and salary continuation assets		19,318		18,912		406		2.1	%
Goodwill		12,050		12,050		—		0.0	%
Intangible assets		2,516		2,642		(126	)	-4.8	%
Other assets		7,333		8,356		(1,023	)	-12.2	%
Total Assets	$	1,107,659	$	1,048,994	$	58,665		5.6	%
Liabilities
Noninterest bearing - demand deposits	$	179,614	$	169,579	$	10,035		5.9	%
Interest bearing deposits:
NOW and savings accounts		397,852		452,357		(54,505	)	-12.0	%
Time, $100,000 and over		125,809		123,006		2,803		2.3	%
Other time		144,959		149,856		(4,897	)	-3.3	%
Total Deposits		848,234		894,798		(46,564	)	-5.2	%
Short-term borrowings		124,239		24,539		99,700		406.3	%
Long-term borrowings		3,255		5,668		(2,413	)	-42.6	%
Capital lease obligations		392		416		(24	)	-5.8	%
Subordinated debentures		10,310		10,310		—		0.0	%
Accrued interest payable		1,113		1,000		113		11.3	%
Other liabilities		7,203		7,188		15		0.2	%
Total Liabilities		994,746		943,919		50,827		5.4	%
Stockholders’ Equity
Common stock		102,140		100,812		1,328		1.3	%
Retained earnings		10,738		4,057		6,681		164.7	%
Accumulated other comprehensive income, net of tax		35		206		(171	)	-83.0	%
Total Stockholders’ Equity		112,913		105,075		7,838		7.5	%
Total Liabilities and Stockholders’ Equity	$	1,107,659	$	1,048,994	$	58,665		5.6	%

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July 21, 2005

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AmericanWest Bancorporation

Selected Consolidated Financial Highlights

($ in thousands, except per share data and ratios; unaudited)

	6/30/2005			12/31/2004
Loan Portfolio:
Commercial real estate	$	559,994		$	497,253
Commercial and industrial		195,388			197,912
Agricultural		126,648			122,735
Real estate construction		40,478			45,908
Real estate mortgage		33,824			32,703
Installment		19,227			22,454
Bankcards and other		10,071			8,909
Total loans, gross	$	985,630		$	927,874
Allowance for loan losses		(15,377	)		(18,475	)
Deferred loan fees, net of deferred costs		687			(144	)
Total loans, net	$	970,940		$	909,255

	Three Months Ended						Six Months Ended
	6/30/2005			6/30/2004			6/30/2005			6/30/2004
Allowance for loan losses:
Balance, beginning of period	$	16,923		$	12,505		$	18,475		$	12,453
Provision for loan losses		190			5,710			1,265			6,710
Loan charge-offs		(1,832	)		(4,728	)		(4,507	)		(5,743	)
Loan recoveries		96			524			144			591
Balance, end of period	$	15,377		$	14,011		$	15,377		$	14,011
Allowance for loan loss to total loans		1.56	%		1.52	%		1.56	%		1.52	%

	6/30/2005			3/31/2005			12/31/2004
Nonperforming assets:
Accruing loans over 90 days past due	$	74		$	46		$	53
Nonaccrual loans		15,441			31,314			24,222
Total nonperforming loans	$	15,515		$	31,360		$	24,275
Foreclosed real estate and other foreclosed assets		3,222			1,940			4,201
Total nonperforming assets	$	18,737		$	33,300		$	28,476
Ratio of total nonperforming assets to total assets		1.69	%		3.26	%		2.71	%
Ratio of total nonperforming loans to total gross loans		1.57	%		3.46	%		2.62	%
Ratio of allowance for loan loss to nonperforming loans		99.11	%		53.96	%		76.11	%

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AWBC – Q2 2005 Earnings

July 21, 2005

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AmericanWest Bancorporation

Selected Consolidated Financial Highlights

($ in thousands, except per share data and ratios; unaudited)

	Six Months Ended June 30,
	2005						2004
($ in thousands)	Average Balance		Interest		%		Average Balance		Interest		%
Assets
Loans, gross	$	915,530	$	34,496	7.60	%	$	882,441	$	34,689	7.91	%
Taxable Investments		24,137		489	4.09	%		33,783		826	4.92	%
Nontaxable Investments		8,712		276	6.39	%		8,971		278	6.23	%
Overnight deposits with other banks		1,166		31	5.36	%		8,403		47	1.12	%
Total earning assets		949,545	$	35,292	7.50	%		933,598	$	35,840	7.72	%
Other assets		80,379						96,424
Total assets	$	1,029,924					$	1,030,022
Liabilities
Interest bearing deposits	$	679,334	$	6,487	1.93	%	$	715,026	$	5,703	1.60	%
Borrowings		62,922		1,180	3.78	%		55,968		725	2.61	%
Total interest bearing liabilities		742,256	$	7,667	2.08	%		770,994	$	6,428	1.68	%
Noninterest bearing deposits		169,967						152,229
Other liabilities		8,984						7,499
Total liabilities		921,207						930,722
Stockholders’ equity		108,717						99,300
Total liabilities and stockholders’ equity	$	1,029,924					$	1,030,022
Net interest income and spread					5.42	%					6.04	%
Net interest margin to average earnings assets					5.87	%					6.34	%

The above table includes 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%.

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