EX-99.1 2 dex991.htm PRESS RELEASE Press release

Exhibit 99.1

AMERICANWEST BANCORPORATION

 

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

NEWS RELEASE

AMERICANWEST BANCORPORATION ANNOUNCES 2006

THIRD QUARTER RESULTS AND QUARTERLY CASH DIVIDEND

Spokane, Washington – October 24, 2006 AmericanWest Bancorporation (Nasdaq: AWBC) today announced that net income for the three and nine months ended September 30, 2006 was $2.4 million or $0.21 per diluted share and $6.8 million or $0.61 per diluted share, respectively. This compares to $3.2 million or $0.30 per diluted share for the three months ended September 30, 2005 and $9.9 million or $0.94 per diluted share for the nine months ended September 30, 2005.

On October 19, 2006 AWBC and Utah-based Far West Bancorporation announced the signing of a definitive agreement for Far West Bancorporation (Far West) to merge with and into AWBC, followed by the merger of Far West’s principal operating subsidiary, Far West Bank (FWB) with and into AWBC’s principal operating subsidiary, AmericanWest Bank (AWB), in a transaction valued at approximately $150 million. The transaction is expected to be completed during the first quarter of 2007 and is subject to regulatory approval and approval by the shareholders of both companies. For additional information related to this transaction refer to the Form 8-K filed with the Securities and Exchange Commission on October 19, 2006.

“The acquisition of Far West Bank sharply accelerates our planned expansion in Utah by adding a well-known brand with 16 branches, a strong customer base and a great team of bankers,” said Robert M. Daugherty, AmericanWest Bank President and Chief Executive Officer. “By combining with Far West we’re creating a bank whose size is unique to the Utah market and we believe that gives us a distinct advantage.”

AWBC is also announcing that its Board of Directors has approved a cash dividend of $0.03 per share, payable on November 17, 2006 to shareholders of record at the close of business on November 3, 2006.


Loan Growth and Credit Quality:

Gross loans were relatively unchanged at $1.2 billion at September 30, 2006 and at June 30, 2006. Gross loans increased $223 million or 23% as compared to December 31, 2005, including $146 million in loans acquired from Columbia Trust Bank (CTB) during the first quarter of 2006. During the third quarter of 2006, government guaranteed loans totaling $10.2 million were sold offset by a substantial portion of new loan production. The percentage of commercial real estate loans remained consistent at 51% of the total loan portfolio at September 30, 2006.

Total nonperforming loans were $12.2 million or 1.03% of total gross loans at September 30, 2006 which is an improvement from $13.6 million or 1.14% of total gross loans as of June 30, 2006 and $14.5 million or 1.50% at December 31, 2005. Total nonperforming assets, including foreclosed real estate and other foreclosed assets, were $12.7 million or 0.93% of total assets at September 30, 2006 which is an improvement from $14.5 million or 1.05% of total assets as of June 30, 2006 and $16.7 million or 1.51% of total assets at December 31, 2005. The consistent improvements in these ratios since December 31, 2005 reflect both the reduction of nonperforming assets and the increase in AWBC’s asset base.

The allowance for loan losses was $15.5 million at September 30, 2006 as compared to $14.5 million at June 30, 2006 and $14.4 million at December 31, 2005. At September 30, 2006 the allowance for loan losses as a percentage of total gross loans was 1.31% which compares to 1.22% at June 30, 2006 and 1.49% at December 31, 2005.

The loan loss provision for the quarter ended September 30, 2006 was $1.3 million and for the nine months it was $2.8 million. This compares to $1.1 million and $2.4 million for the three months and nine months ended September 30, 2005, respectively. The loan loss provision in the third quarter is principally attributable to movement within the risk grades of the portfolio primarily in the agricultural category. For the three months ended September 30, 2006 net charge offs, annualized as a percentage of average gross loans were 0.12% as compared to 0.26% for the three months ended June 30, 2006. For the nine months ended September 30, 2006 and 2005, the annualized net charge offs were 0.45% and 0.69% of total average loans, respectively.

Deposit Balances:

Total deposits increased $35 million or 3% during the three months ended September 30, 2006. Deposits increased $203 million or 23% as compared to December 31, 2005, including $176 million in deposits acquired from CTB during the first quarter.

Daugherty remarked, “We are continuing our investment in the Company with new financial centers placed in growth markets. We believe these strategic investments, when combined with a full array of competitive banking products and services, will be a key driver of future deposit and earnings growth.”

Net Interest Margin and Net Interest Income:

The net interest margin was 5.03% for the quarter ended September 30, 2006 as compared to 5.07% for the quarter ended June 30, 2006 and 5.23% for the quarter ended September 30, 2005. The decline in the net interest margin during the third quarter was mainly due to the cost of funds rising


more quickly than the loan yields. The yield on earning assets increased by 15 basis points to 7.99% and the cost of interest bearing liabilities increased 27 basis points to 3.77% during the quarter ended September 30, 2006 as compared to the quarter ended June 30, 2006.

Compared to the similar quarter of the prior year, the earning assets yield increased 73 basis points and the cost of interest bearing liabilities increased 118 basis points. The slower rise in the earning assets yield as compared to the cost of interest bearing liabilities during this past year of rising market rates is attributable to tighter loan spreads due to competition and deliberate changes in the loan portfolio to improve overall credit quality. The improvement in credit quality is also indicated in the nonperforming asset ratios. Also, the cost of funds is increasing due to higher borrowing costs.

Net interest income was $15.7 million for the quarter ended September 30, 2006 as compared to $15.5 million for the quarter ended June 30, 2006 and $13.4 million for the same period in 2005. Net interest income for the nine months ended September 30, 2006 was $44.4 million as compared to $40.2 million for the similar period of the prior year. Net interest income is higher due to an increase in average earning assets which has offset the reduction in the net interest margin.

Noninterest Income and Expense:

Noninterest income was $2.8 million for the quarter ended September 30, 2006 as compared to $2.2 million for the quarter ended June 30, 2006 and $2.0 million for the similar quarter of the prior year. Noninterest income for the nine months ended September 30, 2006 was $6.7 million as compared to $5.8 million for the similar period of the prior year. During the quarter, government guaranteed loan sales of $10.2 million resulted in noninterest revenues of $0.5 million. Management is continuing to evaluate similar opportunities going forward. Additionally, increased revenues are being driven by higher deposit and other service fees and mortgage banking income.

Noninterest expense was $13.2 million for the quarter ended September 30, 2006 as compared to $12.7 million for the quarter ended June 30, 2006 and $10.5 million for the similar quarter of the prior year.

Noninterest expense for the nine months ended September 30, 2006 was $7.7 million higher than the prior year. The increase consists mainly of salaries and employee benefits of $5.1 million due to the higher FTE count including the expansion with CTB, new Idaho financial centers and operations in Utah. Additionally, in the prior year there was a reversal of accruals related to deferred compensation and salary continuation agreements of $0.7 million. Various other categories of expenses increased including other expenses of $0.9 million, equipment expense of $0.5 million and intangible assets amortization of $0.5 million. The other expenses increased from the similar period of the prior year due mainly to increased advertising costs, training costs, other acquisition related expenses and various other expense increases related to growth initiatives. Additionally, an exchange of bank owned life insurance policies resulted in a $0.6 million loss in 2005.

The efficiency ratio was steady for the quarter at 70.10% as compared to 69.99% for the three months ended June 30, 2006, and it was 67.93% for the third quarter of 2005. AWB management anticipates an improvement going forward as revenues expand based on growth initiatives.


Income Taxes:

The effective tax rate for the nine months ended September 30, 2006 was 36.4% which is higher than the similar period of the prior year of 28.1%. During the third quarter of 2005, AWBC recorded a $0.9 million reversal of a tax reserve which significantly reduced the effective tax rate in that year. The effective tax rate for the three months ended September 30, 2006 was 38.0% and is consistent with management’s expectations for the fourth quarter of 2006. The effective tax rate increased in 2006 primarily due to the recapture of certain tax credits recognized in prior years due to modification of the usage of a building and uncertain completion of other construction.

Company Expansion:

The Bank opened its permanent financial center in Hayden, Idaho during the third quarter, replacing the temporary facility that was opened in 2002. Also, during the third quarter, the Bank opened a financial center in an emerging growth area on the west side of Yakima, Washington while closing an older and less convenient office that generally served the same market.

Other expansion activities include the opening of a loan production office in the Salt Lake City, Utah, metropolitan area during the second quarter of 2006. The loan production office is anticipated to contribute to net income by the end of the year.

AWB expects to open three de novo financial centers in the fourth quarter of 2006. These are located in Coeur d’Alene, Idaho, in College Place near Walla Walla, Washington and in the West Plains area near Spokane, Washington.

Business Summary:

AmericanWest Bancorporation is a bank holding company whose principal subsidiary is AmericanWest Bank, a community bank with 43 financial centers located in Eastern Washington and Northern Idaho, as well as loan production offices in Ellensburg, Washington and South Jordan, Utah. For further information on the Company or to access Internet banking, please visit our web site at www.awbank.net.

Forward Looking Statements:

This document contains comments and information that constitute “forward-looking statements” (within the meaning of the Private Securities Litigation Reform Act of 1995). The forward-looking statements herein are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by such statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among other things, the following possibilities: the ability to open new financial centers and to do so on time and on budget; the ability to realize contribution from the Company’s loan production office in Utah and new financial centers; the ability to grow revenues and improve the efficiency ratio; the ability of the companies to obtain the required shareholder or regulatory approvals for the transaction with Far West; the ability of the companies to consummate the transaction; the ability to successfully integrate the companies following the transaction; a material adverse change in the


financial condition, results of operations or prospects of either company; the ability to fully realize the expected cost savings and revenues or the ability to realize them on a timely basis; the risk of borrower, depositor and other customer attrition after the transaction is completed; a change in general business and economic conditions; changes in the interest rate environment, deposit flows, loan demand, real estate values, and competition; changes in accounting principles, policies or guidelines; changes in legislation and regulation; other economic, competitive, governmental, regulatory, geopolitical and technological factors affecting the companies’ operations, pricing and services; and other risk factors referred to from time to time in filings made by the Company with the Securities and Exchange Commission. When used in this document, the words “believes,” “estimates,” “expects,” “should,” “anticipates” and similar expressions as they relate to either company or the proposed transaction are intended to identify forward-looking statements. Forward-looking statements speak only as to the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

This press release may be deemed to be offering or solicitation materials of AmericanWest Bancorporation and Far West Bancorporation in connection with the proposed merger of Far West with and into AmericanWest. Shareholders are urged to read the joint proxy statement/prospectus that will be included in the registration statement on Form S-4, which AmericanWest will file with the SEC in connection with the proposed acquisition, because both will contain important information about AmericanWest, Far West, the acquisition and related matters. The directors and executive officers of AmericanWest and Far West may be deemed to be participants in the solicitation of proxies from their respective shareholders. Information regarding AmericanWest’s participants and their security holdings can be found in its most recent proxy statement filed with the SEC, and information for both AmericanWest and Far West participants in the joint proxy statement/prospectus when it is filed with the SEC.

Additional Information and Where to Find It:

Investors and security holders may obtain and are urged to carefully review and consider AWBC’s public filings with the SEC. The documents filed by AWBC with the SEC may be obtained free of charge at AWBC’s website at www.awbank.net or at the SEC’s website at www.sec.gov. These documents may also be obtained free of charge from AWBC by requesting them in writing at AmericanWest Bancorporation, 41 W. Riverside Avenue, Suite 400, Spokane, Washington 99201, by emailing investorinfo@awbank.net, or by telephone at 509-232-1536.


AmericanWest Bancorporation

Selected Consolidated Financial Highlights

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

 

Consolidated Statements of Income:

   For the three months ended:
   9/30/2006    6/30/2006    9/30/2005

INTEREST INCOME

        

Interest and fees on loans

   $ 24,447    $ 23,535    $ 18,423

Interest on securities

     494      458      242

Other interest income

     44      28      11
                    

TOTAL INTEREST INCOME

     24,985      24,021      18,676
                    

INTEREST EXPENSE

        

Interest on deposits

     7,281      6,551      4,110

Interest on borrowings

     1,993      1,957      1,132
                    

TOTAL INTEREST EXPENSE

     9,274      8,508      5,242
                    

NET INTEREST INCOME

     15,711      15,513      13,434

Provision for loan losses

     1,315      704      1,100
                    

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES

     14,396      14,809      12,334
                    

NONINTEREST INCOME

        

Fees and service charges

     1,467      1,388      1,253

Brokered fee income

     452      405      274

Other

     845      397      438
                    

TOTAL NONINTEREST INCOME

     2,764      2,190      1,965
                    

NONINTEREST EXPENSE

        

Salaries and employee benefits

     7,748      7,376      5,775

Occupancy expense, net

     1,064      1,018      820

Equipment expense

     988      953      789

State business and occupation tax

     383      312      244

Foreclosed real estate and other foreclosed assets expense

     52      81      125

Intangible assets amortization

     294      294      62

Other

     2,716      2,650      2,708
                    

TOTAL NONINTEREST EXPENSE

     13,245      12,684      10,523
                    

INCOME BEFORE PROVISION FOR INCOME TAX

     3,915      4,315      3,776

PROVISION FOR INCOME TAXES

     1,486      1,547      552
                    

NET INCOME

   $ 2,429    $ 2,768    $ 3,224
                    

Basic earnings per share

   $ 0.21    $ 0.24    $ 0.31

Diluted earnings per share

   $ 0.21    $ 0.24    $ 0.30

Basic weighted average shares outstanding

     11,373,559      11,317,386      10,425,258

Diluted weighted average shares outstanding

     11,530,546      11,511,564      10,633,733

Ending book value per share

   $ 13.31    $ 13.09    $ 11.16

Ending tangible book value per share

   $ 9.71    $ 9.46    $ 9.77

Ending shares outstanding

     11,376,497      11,362,267      10,443,123


AmericanWest Bancorporation

Selected Consolidated Financial Highlights

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

 

Consolidated Statements of Income:

   For the nine months ended:
   9/30/2006    9/30/2005

INTEREST INCOME

     

Interest and fees on loans

   $ 66,839    $ 52,183

Interest on securities

     1,410      913

Other interest income

     123      42
             

TOTAL INTEREST INCOME

     68,372      53,138
             

INTEREST EXPENSE

     

Interest on deposits

     18,868      10,597

Interest on borrowings

     5,057      2,312
             

TOTAL INTEREST EXPENSE

     23,925      12,909
             

NET INTEREST INCOME

     44,447      40,229

Provision for loan losses

     2,801      2,365
             

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES

     41,646      37,864
             

NONINTEREST INCOME

     

Fees and service charges

     4,021      3,589

Brokered fee income

     1,137      1,010

Other

     1,552      1,232
             

TOTAL NONINTEREST INCOME

     6,710      5,831
             

NONINTEREST EXPENSE

     

Salaries and employee benefits

     22,015      16,878

Occupancy expense, net

     3,006      2,637

Equipment expense

     2,828      2,294

State business and occupation tax

     949      693

Foreclosed real estate and other foreclosed assets expense

     559      544

Intangible assets amortization

     688      188

Other

     7,552      6,681
             

TOTAL NONINTEREST EXPENSE

     37,597      29,915
             

INCOME BEFORE PROVISION FOR INCOME TAX

     10,759      13,780

PROVISION FOR INCOME TAXES

     3,913      3,875
             

NET INCOME

   $ 6,846    $ 9,905
             

Basic earnings per share

   $ 0.62    $ 0.95

Diluted earnings per share

   $ 0.61    $ 0.94

Basic weighted average shares outstanding

     11,114,884      10,388,358

Diluted weighted average shares outstanding

     11,295,170      10,566,666


AmericanWest Bancorporation

Selected Consolidated Financial Highlights

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

Consolidated Statement of Condition:

 

     September 30,
2006
   June 30,
2006
    December 31,
2005
    September 30,
2005
 
ASSETS          

Cash and due from banks

   $ 38,888    $ 41,467     $ 40,825     $ 46,843  

Overnight interest bearing deposits with other banks

     175      885       11,119       10,620  
                               

Cash and cash equivalents

     39,063      42,352       51,944       57,463  

Securities, available-for-sale at fair value

     42,758      44,783       31,364       22,950  

Loans, net of allowance for loan losses

     1,169,208      1,174,790       947,893       977,610  

Loans, held for sale

     7,672      5,439       3,395       3,674  

Accrued interest receivable

     8,958      8,197       6,969       7,348  

FHLB stock

     6,319      6,319       5,397       5,397  

Premises and equipment, net

     27,320      26,574       21,762       21,938  

Foreclosed real estate and other foreclosed assets

     573      876       2,221       3,210  

Bank owned life insurance

     19,537      19,357       16,987       16,911  

Goodwill

     33,068      33,136       12,050       12,050  

Intangible assets

     7,800      8,094       2,391       2,454  

Other assets

     6,732      6,293       6,761       8,756  
                               

TOTAL ASSETS

   $ 1,369,008    $ 1,376,210     $ 1,109,134     $ 1,139,761  
                               
LIABILITIES          

Noninterest bearing demand deposits

   $ 225,558    $ 223,561     $ 191,192     $ 195,154  

Interest bearing deposits:

         

NOW, savings accounts and MMDA

     472,974      443,250       391,876       434,376  

Time, $100,000 and over

     214,736      216,974       149,101       167,884  

Other time

     187,425      181,840       165,261       165,573  
                               

TOTAL DEPOSITS

     1,100,693      1,065,625       897,430       962,987  

Federal Home Loan Bank advances

     80,575      128,041       70,638       40,648  

Other borrowings and capital lease obligations

     5,190      3,441       899       1,079  

Junior subordinated debt

     20,620      20,620       10,310       10,310  

Accrued interest payable

     3,617      2,976       1,754       1,506  

Other liabilities

     6,926      6,812       6,626       6,713  
                               

TOTAL LIABILITIES

     1,217,621      1,227,515       987,657       1,023,243  
STOCKHOLDERS’ EQUITY          

Common stock, no par

     127,242      126,985       104,667       103,324  

Retained earnings

     24,133      22,045       17,967       14,000  

Unearned compensation

     —        —         (1,095 )     (790 )

Accumulated other comprehensive loss, net of tax

     12      (335 )     (62 )     (16 )
                               

TOTAL STOCKHOLDERS’ EQUITY

     151,387      148,695       121,477       116,518  
                               

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

   $ 1,369,008    $ 1,376,210     $ 1,109,134     $ 1,139,761  
                               


AmericanWest Bancorporation

Selected Consolidated Financial Highlights

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

 

     Three Months Ended  
      9/30/2006     6/30/2006     9/30/2005  

Quarterly Financial Ratios, annualized:

      

Return on average assets

   0.71 %   0.82 %   1.15 %

Return on average equity

   6.44 %   7.61 %   11.19 %

Efficiency ratio

   70.10 %   69.99 %   67.93 %

Noninterest income to average assets

   0.80 %   0.65 %   0.70 %

Noninterest expenses to average assets

   3.85 %   3.76 %   3.77 %

Net interest margin to average earning assets (1)

   5.03 %   5.07 %   5.23 %

Ending shareholders’ equity to assets

   11.06 %   10.80 %   10.22 %

Ending tangible shareholders’ equity to tangible assets

   8.32 %   8.05 %   9.07 %

 

     Nine Months Ended  
     9/30/2006     9/30/2005  

Year to Date Financial Ratios, annualized:

    

Return on average assets

   0.71 %   1.25 %

Return on average equity

   6.51 %   11.97 %

Efficiency ratio

   72.15 %   64.54 %

Noninterest income to average assets

   0.70 %   0.74 %

Noninterest expenses to average assets

   3.92 %   3.79 %

Net interest margin to average earning assets (1)

   5.07 %   5.54 %

 

(1) Presented on a tax equivalent basis for tax exempt securities.


AmericanWest Bancorporation

Selected Consolidated Financial Highlights

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

 

      9/30/2006     6/30/2006     12/31/2005     9/30/2005  

Loan Portfolio:

        

Commercial real estate

   $ 605,097     $ 604,337     $ 501,328     $ 522,283  

Commercial and industrial

     284,322       297,855       226,964       225,761  

Agricultural

     155,875       157,290       119,355       124,111  

Residential mortgage

     74,910       69,564       58,803       52,605  

Residential construction

     40,523       35,548       33,906       40,921  

Installment and other

     24,846       25,559       22,527       28,341  
                                

Total loans

     1,185,573       1,190,153       962,883       994,022  

Allowance for loan losses

     (15,477 )     (14,527 )     (14,361 )     (16,013 )

Deferred loan fees, net of deferred costs

     (888 )     (836 )     (629 )     (399 )
                                

Net loans

   $ 1,169,208     $ 1,174,790     $ 947,893     $ 977,610  
                                
     9/30/2006     6/30/2006     12/31/2005     9/30/2005  

Nonperforming assets:

        

Accruing loans over 90 days past due

   $ 549     $ 0     $ 31     $ 1  

Nonaccrual loans

     11,621       13,577       14,452       17,241  
                                

Total nonperforming loans

   $ 12,170     $ 13,577     $ 14,483     $ 17,242  

Foreclosed real estate and other foreclosed assets

     573       876       2,221       3,210  
                                

Total nonperforming assets

   $ 12,743     $ 14,453     $ 16,704     $ 20,452  

Total nonperforming loans to total gross loans

     1.03 %     1.14 %     1.50 %     1.73 %

Total nonperforming assets to total assets

     0.93 %     1.05 %     1.51 %     1.79 %

Allowance for loan loss to total gross loans

     1.31 %     1.22 %     1.49 %     1.61 %

Quarterly net chargeoffs to average gross loans, annualized

     0.12 %     0.26 %     0.67 %     0.19 %

Quarterly provision to average gross loans, annualized

     0.44 %     0.24 %     0.00 %     0.44 %

Allowance for loan loss to nonperforming loans

     127.17 %     107.00 %     99.16 %     92.87 %


AmericanWest Bancorporation

Selected Consolidated Financial Highlights

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

 

      Three Months Ended  
     9/30/2006     6/30/2006     9/30/2005  

Allowance for Loan Losses:

      

Balance, beginning of year

   $ 14,527     $ 14,597     $ 15,377  

Provision charged to operations

     1,315       704       1,100  

Loans charged-off

     (640 )     (917 )     (517 )

Recoveries

     275       143       53  
                        

Balance, end of year

   $ 15,477     $ 14,527     $ 16,013  
                        

 

      Nine Months Ended  
     9/30/2006     9/30/2005  

Balance, beginning of year

   $ 14,361     $ 18,475  

Provision charged to operations

     2,801       2,365  

Allowance related to acquired loans

     2,068       —    

Loans charged-off

     (4,284 )     (5,024 )

Recoveries

     531       197  
                

Balance, end of year

   $ 15,477     $ 16,013  
                


AmericanWest Bancorporation

Selected Consolidated Financial Highlights

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

Quarterly Net Interest Margin:

 

     Three Months
Ended Sept 30, 2006
    Three months
ended June 30, 2006
    Three Months
Ended Sept 30, 2005
 
($ in thousands)    Average
Balance
   Interest    %     Average
Balance
   Interest    %     Average
Balance
   Interest    %  
Assets                         

Loans

   $ 1,189,151    $ 24,447    8.16 %   $ 1,178,263    $ 23,535    8.01 %   $ 991,184    $ 18,423    7.37 %

Taxable securities

     33,361      386    4.59 %     34,574      357    4.14 %     14,916      154    4.10 %

Nontaxable securities

     10,769      165    6.08 %     10,507      153    5.84 %     8,616      133    6.12 %

FHLB Stock

     6,319      —      0.00 %     6,319      —      0.00 %     5,397      —      0.00 %

Overnight deposits with other banks and other

     3,106      44    5.62 %     2,451      28    4.58 %     2,469      11    1.77 %
                                                            

Total interest earning assets

     1,242,706      25,042    7.99 %     1,232,114      24,073    7.84 %     1,022,582      18,721    7.26 %
                                                            

Noninterest earning assets

     120,668           119,755           85,786      
                                    

Total assets

   $ 1,363,374         $ 1,351,869         $ 1,108,368      
                                    
Liabilities                         

Interest bearing demand deposits

   $ 91,827    $ 168    0.73 %   $ 93,111    $ 172    0.74 %   $ 68,169    $ 75    0.44 %

Savings and MMDA deposits

     352,140      2,700    3.04 %     354,325      2,494    2.82 %     331,962      1,803    2.15 %

Time deposits

     397,454      4,413    4.41 %     384,128      3,885    4.06 %     295,585      2,232    3.00 %
                                                            

Total interest bearing deposits

     841,421      7,281    3.43 %     831,564      6,551    3.16 %     695,716      4,110    2.34 %
                                                            

Overnight borrowings

     42,273      582    5.46 %     70,294      894    5.10 %     36,651      377    4.08 %

Other borrowings

     91,963      1,411    6.09 %     72,309      1,063    5.90 %     71,596      755    4.18 %
                                                            

Total interest bearing liabilities

     975,657      9,274    3.77 %     974,167      8,508    3.50 %     803,963      5,242    2.59 %
                                                            

Noninterest bearing demand deposits

     227,782           222,516           181,075      

Other noninterest bearing liabilities

     10,222           9,207           9,057      
                                    

Total liabilities

     1,213,661           1,205,890           994,095      

Stockholders’ Equity

     149,713           145,979           114,273      
                                    

Total liabilities and stockholders’ equity

   $ 1,363,374         $ 1,351,869         $ 1,108,368      
                                    

Net interest income and spread

      $ 15,768    4.22 %      $ 15,565    4.34 %      $ 13,479    4.67 %
                                                

Net interest margin to average earning assets

         5.03 %         5.07 %         5.23 %
                                    


AmericanWest Bancorporation

Selected Consolidated Financial Highlights

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

Year to Date Net Interest Margin:

 

      Nine Months Ended September 30,  
     2006     2005  
($ in thousands)    Average
Balance
   Interest    %     Average
Balance
   Interest    %  
Assets                 

Loans

   $ 1,126,255    $ 66,839    7.93 %   $ 941,025    $ 52,183    7.41 %

Taxable securities

     30,977      1,115    4.81 %     17,459      621    4.76 %

Nontaxable securities

     9,865      447    6.06 %     8,680      409    6.30 %

FHLB Stock

     6,055      —      0.00 %     5,390      22    0.55 %

Overnight deposits with other banks and other

     3,005      123    5.47 %     1,606      42    3.50 %
                                        

Total interest earning assets

     1,176,157      68,524    7.79 %     974,160      53,277    7.31 %
                                        

Noninterest earning assets

     107,694           82,490      
                        

Total assets

   $ 1,283,851         $ 1,056,650      
                        
Liabilities                 

Interest bearing demand deposits

   $ 88,291    $ 482    0.73 %   $ 64,815    $ 168    0.35 %

Savings and MMDA deposits

     342,342      7,175    2.80 %     347,058      4,601    1.77 %

Time deposits

     368,025      11,211    4.07 %     272,981      5,828    2.85 %
                                        

Total interest bearing deposits

     798,658      18,868    3.16 %     684,854      10,597    2.07 %
                                        

Overnight borrowings

     43,544      1,668    5.12 %     49,158      1,457    3.96 %

Other borrowings

     78,329      3,389    5.78 %     29,038      855    3.94 %
                                        

Total interest bearing liabilities

     920,531      23,925    3.47 %     763,050      12,909    2.26 %
                                        

Noninterest bearing demand deposits

     213,184           173,711      

Other noninterest bearing liabilities

     9,548           9,273      
                        

Total liabilities

     1,143,263           946,034      

Stockholders’ Equity

     140,588           110,616      
                        

Total liabilities and stockholders’ equity

   $ 1,283,851         $ 1,056,650      
                        

Net interest income and spread

      $ 44,599    4.32 %      $ 40,368    5.05 %
                                

Net interest margin to average earning assets

         5.07 %         5.54 %
                        

The above net interest margin tables include 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%.

Source: AmericanWest Bancorporation