8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) October 27, 2005

AMERICANWEST BANCORPORATION

(Exact name of registrant as specified in its charter)

Washington	0-18561	91-1259511
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

41 W. Riverside Avenue, Suite 400 Spokane, WA	99201
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code (509) 467-6993

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Section 2 – Financial Information

Item 2.02 Results of Operations and Financial Condition

AmericanWest Bancorporation announced its results for the third quarter ended September 30, 2005, on the press release attached as Exhibit 99.1.

Section 7 – Regulation FD

Item 7.01 Regulation FD Disclosure

AmericanWest Bancorporation announced the filing of an application with the Washington State Department of Financial Institutions and the Federal Deposit Insurance for approval for AWB to open a de novo branch in Coeur d’Alene, Idaho, on the press release dated October 28, 2005, attached as Exhibit 99.2.

Section 9 – Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits

(c)    Exhibit No.	Exhibit Description
99.1	Press release dated October 27, 2005, titled “AmericanWest Bancorporation Announces 2005 Third Quarter Results”
99.2	Press release dated October 28, 2005, titled “ AmericanWest Bancorporation Announces Application To Open Idaho Branch”

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	AMERICANWEST BANCORPORATION,
	a Washington Corporation
Dated: October 31, 2005	/s/    ROBERT M. DAUGHERTY
	Robert M. Daugherty,
	President and CEO

EX-99.1

Exhibit 99.1

AWBC – Q3 2005 Earnings

October 27, 2005

Page 1 of 9

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

NEWS RELEASE

AMERICANWEST BANCORPORATION ANNOUNCES 2005 THIRD QUARTER RESULTS

Spokane, Washington – October 27, 2005 – AmericanWest Bancorporation (Nasdaq:AWBC) today announced that net income for the nine months ended September 30, 2005 was $9.9 million or $0.94 per diluted share, which is 13% higher than $8.8 million or $0.84 per diluted share for the nine months ended September 30, 2004. The net income for the third quarter of 2005 was $3.2 million or $0.30 per diluted share as compared to $4.0 million or $0.38 per diluted share for the third quarter of 2004.

AWBC also announced that, in a letter dated October 24, 2005, the Federal Deposit Insurance Corporation (FDIC) notified the Company’s wholly-owned subsidiary, AmericanWest Bank (AWB or Bank), that, following the recently completed Compliance Examination of the Bank by the FDIC, the FDIC has terminated the memorandum of understanding (MOU) between AWB and the FDIC relating to the Bank’s compliance controls, processes and training, and that the Bank is no longer restricted by that supervisory enforcement action. The MOU had been issued based upon AWB’s operations under prior management.

“With $77 million in core deposit growth this past quarter, clearly our growth initiatives in both lending and deposit gathering have gained significant traction. Now that we are free to expand following termination of the MOU, we expect this traction and growth trend to accelerate with the immediate addition of planned de novo branches in some rapidly growing areas in both existing and adjacent market areas,” said Robert M. Daugherty, President and Chief Executive Officer. “Our credit quality has been sound on a going-forward basis since changes to the Bank’s prior credit culture were implemented late last year but further net reductions of nonperforming assets did not improve as much during the third quarter as we had hoped due to the deterioration of one credit during the quarter. However, final resolution of approximately $5 million of our nonperforming assets is presently scheduled to occur during the fourth quarter. We remain confident of our ultimate success based upon performance year to date and planned growth, both organically and through expansion, during 2006,” he continued. “The resolution of the compliance issues on which the MOU was based,” he said, “was distracting and also expensive but we are pleased to now have that behind us and, with our new compliance procedures, we are poised to move forward aggressively with a well-founded growth plan.”

LOAN GROWTH AND CREDIT QUALITY:

Gross loans increased $11.5 million during the third quarter of 2005, resulting in an increase of $69.8 million or 7.5% from the prior year-end. At September 30, 2005 total gross loans were $997.7 million compared to

AWBC – Q3 2005 Earnings

October 27, 2005

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$927.9 million at December 31, 2004. This includes an increase of commercial and industrial loans of $27.8 million and commercial real estate loans of $25.0 million. Commercial real estate loans continue to be a significant percentage of the total portfolio at 52.3% as of September 30, 2005 compared to 53.6% at December 31, 2004.

Total nonperforming loans were $17.2 million or 1.73% of total gross loans at September 30, 2005 as compared to $15.5 million or 1.57% of total gross loans at June 30, 2005. The increase during the quarter is primarily due to management’s reclassification of a $2.4 million loan during the quarter to nonaccrual status due to operating losses and deterioration in collateral values as evidenced by an updated appraisal. The loan remains current as of September 30, 2005 and management is exploring options for collection of the account in full. Despite the slight deterioration in the current quarter, the nonperforming loans have decreased approximately $7.0 million or 29.0% compared to $24.3 million which was 2.62% of total gross loans at December 31, 2004. The decrease from the prior year is due mainly to management’s continued efforts to collect on past due loans and to improve the overall credit quality of the portfolio.

The Company’s total nonperforming assets, including foreclosed real estate and other foreclosed assets, were $20.5 million or 1.79% of total assets at September 30, 2005 compared to $28.5 million or 2.71% of total assets at December 31, 2004. This decrease is due to the nonperforming loans discussed above and a decrease of approximately $1.0 million in foreclosed assets and other foreclosed real estate related mainly to the sale of one property.

Total loans delinquent 30 or more days and still accruing were $2.2 million or 0.22% of total gross loans at September 30, 2005, as compared to $2.7 million or 0.28% at June 30, 2005; $4.2 million or 0.45% at December 31, 2004; and $10.0 million or 1.05% at September 30, 2004. The decrease is due to management’s continued emphasis on portfolio management and the shift in the credit culture of the Company.

The allowance for loan losses was $16.0 million at September 30, 2005 compared to $18.5 million at December 31, 2004. At September 30, 2005 the allowance for loan losses as a percentage of total gross loans was 1.60% as compared to the December 31, 2004 allowance of 1.99% and the September 30, 2004 allowance of 1.57%. The decline from the prior year-end is due to the resolution of various nonperforming loans in line with the provisions provided during the nine months ended September 30, 2005. Provision for loan losses for the three and nine months ended September 30, 2005 was $1.1 million and $2.4 million, respectively. These are compared to $1.8 million and $8.5 million for the three and nine months ended September 30, 2004, respectively. The 2004 provision included a specific provision of $4.0 million related to one borrower relationship. Loan charge offs for the three months ended September 30, 2005 were $0.5 million compared to $1.0 million for the three months ended September 30, 2004. Loan charge offs for the nine months ended September 30, 2005 were $5.0 million compared to $6.7 million for the nine months ended September 30, 2004.

DEPOSIT AND BORROWING BALANCES:

Deposits were $963.0 million as of September 30, 2005, which is an increase of $68.2 million or 7.6% from $894.8 million at December 31, 2004. Most of this increase has occurred during this quarter as a result of cultivation of a retail branch sales culture, including a new line-up of retail products, training and targeted marketing efforts. Time deposits increased 22.2% and noninterest bearing deposits increased 15.1% from December 31, 2004. NOW and savings accounts decreased 4.0% during this same period. These new deposits

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October 27, 2005

Page 3 of 9

are replacing borrowings that had been increasing to support loan growth. The cost of deposits increased to 2.07% for the nine month period ended September 30, 2005 compared to 1.61% for the similar period ended September 30, 2004 due to higher interest rates reflecting increases in rates by the Federal Reserve Board.

Short-term borrowings were $38.1 million as of September 30, 2005, an increase of $13.6 million from $24.5 million at December 31, 2004. Long-term borrowings were $3.2 million at September 30, 2005, which is a decrease of $2.4 million from December 31, 2004.

NET INTEREST MARGIN:

Net interest margin was 5.68% for the nine month period through September 30, 2005 compared to 6.25% for the similar period of 2004. The primary reason is higher costs of deposits and borrowings due to rising market rates. The overall cost of interest bearing liabilities has increased 57 basis points during the nine month period. In addition, the Bank’s efforts to decrease the risk profile of its overall loan portfolio have resulted in slightly decreased loan yields even though market rates have increased. The Bank is booking new business at competitive rates while maintaining profitable margins. The investments yield is also lower due to sales and maturities as there have been minimal purchases during 2005. The overall yield on earning assets has decreased by 20 basis points.

Net interest income decreased $2.3 million for the three months ended September 30, 2005 compared to September 30, 2004. The net interest income for the nine months ended September 30, 2005 has decreased $4.1 million from the nine months ended September 30, 2004 due to the decline in the net interest margin.

NONINTEREST INCOME AND EXPENSE:

Noninterest income decreased $0.2 million to $1.7 million for the three months ended September 30, 2005 as compared to $1.9 million for the three months ended September 30, 2004. The noninterest income for the nine months ended September 30, 2005 of $4.8 million is $1.2 million lower than for the same period of 2004. This is due mainly to a $0.6 million gain recorded in 2004 related to the divesture of a branch and smaller gains on sales of foreclosed real estate and other foreclosed assets than in the prior year.

Noninterest expense increased $0.5 million to $10.5 million for the three months ended September 30, 2005 from $10.0 million for the three months ended September 30, 2004. The increase is due to the loss on an exchange of bank owned life insurance policies of $0.6 million during the third quarter of 2005. In addition, occupancy expense increased as a result of rent costs at executive offices that were placed into service late in 2004. Equipment expenses for the quarter also increased over the prior year as the Company continues to update and improve technology bankwide. These increases were partially offset by $0.7 million in write-offs of deferred compensation and salary continuation agreements during the third quarter of 2005 due to the unfortunate passing of a prior bank executive and lower write downs taken during the third quarter of 2005 on foreclosed assets and other foreclosed real estate than taken during the comparable period in 2004.

INCOME TAXES:

The effective tax rate for the nine months ended September 30, 2005 was 28.1% as compared to 31.5% for the nine months ended September 30, 2004. The decrease in the tax rate is due mainly to the reversal of a $0.9

AWBC – Q3 2005 Earnings

October 27, 2005

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million tax reserve recorded in 2004 for the anticipated surrender of some bank owned life insurance policies. These policies were exchanged, rather than surrendered, in the third quarter of 2005 and this resulted in a $0.6 million write-down of the asset rather than a tax loss.

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 both lending and deposit growth will continue, that resolution of $5 million in nonperforming assets will be resolved during the fourth quarter, and that growth and expansion will continue in 2006. 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 – Q3 2005 Earnings

October 27, 2005

Page 5 of 9

AmericanWest Bancorporation

Selected Consolidated Financial Highlights

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

	Three Months Ended				Nine Months Ended
	9/30/2005		9/30/2004		9/30/2005		9/30/2004
Statement of Income Data
Interest Income
Interest and fees on loans	$	18,697	$	18,849	$	53,193	$	53,538
Interest on securities		242		930		913		1,943
Other interest income		11		10		42		57
Total Interest Income		18,950		19,789		54,148		55,538
Interest Expense
Interest on deposits		4,110		2,993		10,597		8,696
Interest on borrowings		1,132		744		2,312		1,469
Total Interest Expense		5,242		3,737		12,909		10,165
Net Interest Income		13,708		16,052		41,239		45,373
Provision for loan losses		1,100		1,788		2,365		8,498
Net Interest Income After Provision for Loan Losses		12,608		14,264		38,874		36,875
Noninterest Income
Fees and service charges		1,253		1,294		3,589		3,645
Other		438		582		1,232		2,424
Total Noninterest Income		1,691		1,876		4,821		6,069
Noninterest Expense
Salaries and employee benefits		5,775		5,870		16,878		17,290
Occupancy expense, net		820		770		2,637		2,239
Equipment expense		740		595		2,259		1,900
State business and occupation tax		244		321		693		720
Foreclosed real estate and other foreclosed assets expense		125		504		544		2,280
Other		2,819		1,916		6,904		5,695
Total Noninterest Expense		10,523		9,976		29,915		30,124
Income Before Provision for Income Tax		3,776		6,164		13,780		12,820
Provision for Income Tax		552		2,186		3,875		4,037
Net Income	$	3,224	$	3,978	$	9,905	$	8,783

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AWBC – Q3 2005 Earnings

October 27, 2005

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AmericanWest Bancorporation

Selected Consolidated Financial Highlights

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

	Three Months Ended				Nine Months Ended
	9/30/2005		9/30/2004		9/30/2005		9/30/2004
Share Data:
Basic earnings per share	$	0.31	$	0.39	$	0.95	$	0.86
Diluted earnings per share	$	0.30	$	0.38	$	0.94	$	0.84
Basic weighted average shares outstanding		10,425,258		10,191,775		10,388,358		10,177,990
Diluted weighted average shares outstanding		10,633,733		10,438,276		10,566,666		10,477,819

	Nine Months Ended
	9/30/2005		9/30/2004
Financial Ratios, annualized:
Return on average assets	1.25	%	1.10	%
Return on average equity	11.94	%	11.70	%
Efficiency ratio	64.95	%	58.56	%
Noninterest expenses to average assets	3.77	%	3.76	%
Net interest margin to average earning assets	5.68	%	6.25	%

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AWBC – Q3 2005 Earnings

October 27, 2005

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AmericanWest Bancorporation

Selected Consolidated Financial Highlights

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

	9/30/2005			12/31/2004		$ Change			% Change
Consolidated Statement of Condition
Cash and due from banks	$	46,843		$	26,915	$	19,928		74.0	%
Overnight interest bearing deposits with other banks		10,620			2,302		8,318		361.3	%
Cash and cash equivalents		57,463			29,217		28,246		96.7	%
Securities		28,347			33,886		(5,539	)	-16.3	%
Loans, net of allowance for loan losses of $16,013 and $18,475, respectively		981,284			909,255		72,029		7.9	%
Accrued interest receivable		7,348			6,520		828		12.7	%
Premises and equipment, net		21,938			23,955		(2,017	)	-8.4	%
Foreclosed real estate and other foreclosed assets		3,210			4,201		(991	)	-23.6	%
Life insurance and salary continuation assets		16,911			18,912		(2,001	)	-10.6	%
Goodwill		12,050			12,050		—		0.0	%
Intangible assets		2,454			2,642		(188	)	-7.1	%
Other assets		8,756			8,356		400		4.8	%
Total Assets	$	1,139,761		$	1,048,994	$	90,767		8.7	%
Liabilities
Noninterest bearing - demand deposits	$	195,154		$	169,579	$	25,575		15.1	%
Interest bearing deposits:
NOW and savings accounts		434,376			452,357		(17,981	)	-4.0	%
Time, $100,000 and over		167,884			123,006		44,878		36.5	%
Other time		165,573			149,856		15,717		10.5	%
Total Deposits		962,987			894,798		68,189		7.6	%
Short-term borrowings		38,099			24,539		13,560		55.3	%
Long-term borrowings		3,248			5,668		(2,420	)	-42.7	%
Capital lease obligations		380			416		(36	)	-8.7	%
Subordinated debentures		10,310			10,310		—		0.0	%
Accrued interest payable		1,506			1,000		506		50.6	%
Other liabilities		6,713			7,188		(475	)	-6.6	%
Total Liabilities		1,023,243			943,919		79,324		8.4	%
Stockholders’ Equity
Common stock, no par, shares authorized $15 million; issued and outstanding 10,483,623 and 10,269,454, respectively		103,324			100,812		2,512		2.5	%
Retained earnings		14,000			4,057		9,943		245.1	%
Accumulated other comprehensive income (loss), net of tax		(16	)		206		(222	)	-107.8	%
Unearned employee common stock awards		(790	)		—		(790	)	-100.0	%
Total Stockholders’ Equity		116,518			105,075		11,443		10.9	%
Total Liabilities and Stockholders’ Equity	$	1,139,761		$	1,048,994	$	90,767		8.7	%

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October 27, 2005

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AmericanWest Bancorporation

Selected Consolidated Financial Highlights

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

	9/30/2005			12/31/2004
Loan Portfolio:
Commercial real estate	$	522,283		$	497,253
Commercial and industrial		225,761			197,912
Agricultural		124,111			122,735
Real estate mortgage		56,279			32,703
Real estate construction		40,921			45,908
Installment		18,545			22,454
Bankcards and other		9,796			8,909
Total loans, gross	$	997,696		$	927,874
Allowance for loan losses		(16,013	)		(18,475	)
Deferred loan fees, net of deferred costs		(399	)		(144	)
Total loans, net	$	981,284		$	909,255

	Three Months Ended						Nine Months Ended
	9/30/2005			9/30/2004			9/30/2005			9/30/2004
Allowance for loan losses:
Balance, beginning of period	$	15,377		$	14,011		$	18,475		$	12,453
Provision for loan losses		1,100			1,788			2,365			8,498
Loan charge-offs		(517	)		(983	)		(5,024	)		(6,726	)
Loan recoveries		53			162			197			753
Balance, end of period	$	16,013		$	14,978		$	16,013		$	14,978
Allowance for loan loss to total gross loans		1.60	%		1.57	%		1.60	%		1.57	%

	9/30/2005			6/30/2005			3/31/2005			12/31/2004
Nonperforming assets:
Accruing loans over 90 days past due	$	1		$	74		$	46		$	53
Nonaccrual loans		17,241			15,441			31,314			24,222
Total nonperforming loans	$	17,242		$	15,515		$	31,360		$	24,275
Foreclosed real estate and other foreclosed assets		3,210			3,222			1,940			4,201
Total nonperforming assets	$	20,452		$	18,737		$	33,300		$	28,476
Ratio of total nonperforming assets to total assets		1.79	%		1.69	%		3.26	%		2.71	%
Ratio of total nonperforming loans to total gross loans		1.73	%		1.57	%		3.46	%		2.62	%
Ratio of allowance for loan loss to nonperforming loans		92.87	%		99.11	%		53.96	%		76.10	%

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AmericanWest Bancorporation

Selected Consolidated Financial Highlights

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

	Nine Months Ended September 30,
	2005						2004
($ in thousands)	Average Balance		Interest		%		Average Balance		Interest		%
Assets
Loans, gross	$	941,025	$	53,193	7.56	%	$	903,669	$	53,538	7.91	%
Taxable Investments		22,849		654	3.83	%		52,682		1,663	4.22	%
Nontaxable Investments		8,680		409	6.30	%		9,063		423	6.23	%
Overnight deposits with other banks		1,606		31	2.58	%		6,982		57	1.09	%
Total earning assets		974,160	$	54,287	7.45	%		972,396	$	55,681	7.65	%
Other assets		82,490						95,691
Total assets	$	1,056,650					$	1,068,087
Liabilities
Interest bearing deposits	$	684,854	$	10,597	2.07	%	$	721,660	$	8,696	1.61	%
Borrowings		78,196		2,312	3.95	%		83,928		1,469	2.34	%
Total interestbearing liabilities		763,050	$	12,909	2.26	%		805,588	$	10,165	1.69	%
Noninterest bearing deposits		173,711						154,884
Other liabilities		9,273						7,555
Total liabilities		946,034						968,027
Stockholders’ equity		110,616						100,060
Total liabilities and stockholders’ equity	$	1,056,650					$	1,068,087
Net interest income and spread					5.19	%					5.96	%
Net interest margin to average earning assets					5.68	%					6.25	%

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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EX-99.2

Exhibit 99.2

NEWS RELEASE

AMERICANWEST BANCORPORATION ANNOUNCES APPLICATION

TO OPEN IDAHO BRANCH

SPOKANE, WA – OCTOBER 28, 2005 – AmericanWest Bancorporation (Nasdaq:AWBC) today announced the filing of an application by its banking subsidiary, AmericanWest Bank (AWB), with the Washington State Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC) for approval for AWB to open a de novo branch in Coeur d’Alene, Idaho. In anticipation of the lifting of the Memorandum of Understanding between AWB and the FDIC, which was terminated last Monday, October 24, 2005, AWB has already entered into a ground lease for the branch site, contingent upon regulatory approval of this application, on property in the Shopko Shopping Center at the NE Corner of Ironwood Drive and U.S. Hwy. 95.

“We believe this proposed branch is an excellent fit to our existing franchise and will strengthen our community presence, contribute to profitability and enhance the neighborhood in which the branch will be located,” said President and CEO Robert M. Daugherty. “Coeur d’Alene, which is only about 35 miles from our downtown Spokane, WA headquarters, is experiencing tremendous economic growth and this center will complement our existing Hayden, Idaho facility extremely well.”

“As a community bank focused on building relationships with our consumer and business clients, we believe adding this additional facility in North Idaho will provide greater access to service for our current and potential customers in the area,” Daugherty continued. ”We’re very excited about being a part of that community and expanding into Coeur d’Alene to serve the financial needs of its residents and businesses.”

AWB hopes to erect a temporary facility at the site so as to be able to open for business late in the first quarter or early second quarter, 2006, with the permanent building expected to be completed in the Fall of 2006.

AmericanWest Bancorporation is a community bank holding company with 44 offices located in Eastern Washington and Northern Idaho. For further information on the Company or to access Internet banking, please visit our web site at www.awbank.net.

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