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) July 26, 2007

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

On July 26, 2007, AmericanWest Bancorporation issued a press release announcing its financial results for the second quarter of 2007. A copy of the press release is attached as Exhibit 99.1.

Section 9 – Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits

(a) Not Applicable

(b) Not Applicable

(c) Not applicable

(d)	Exhibit No.	Exhibit Description
	99.1	Press release dated July 26, 2007, titled “AmericanWest Bancorporation Announces 2007 Second Quarter Financial Results”

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: July 26, 2007	/s/ Patrick J. Rusnak
	Patrick J. Rusnak
	EVP and Chief Operating Officer

EX-99.1

Exhibit 99.1

AWBC – 2007 Q2 Earnings

July 26, 2007

Page 1 of 13

AMERICANWEST BANCORPORATION

NEWS RELEASE

AMERICANWEST BANCORPORATION ANNOUNCES

2007 SECOND QUARTER FINANCIAL RESULTS

SPOKANE, WASHINGTON – (Business Wire) - AmericanWest Bancorporation (NASDAQ: AWBC) today announced its second quarter 2007 financial results, which included the following highlights:

• 37% increase in diluted earnings per share over the first quarter of 2007 and 8% over the same period in 2006

• Return on average assets of 0.92%, an improvement of 29 basis points over the first quarter of 2007 and 10 basis points over the same period in 2006

• Net interest margin (tax-equivalent) of 5.37%, an increase of 68 basis points over the prior quarter

• Organic loan growth of $51 million, representing annualized growth of 16%

• Period-end non-performing assets of $23.9 million, or 1.19% of total assets

• Net charge-offs (annualized) of 46 basis points of average loans for the second quarter and 33 basis points for the six months ended June 30, 2007

Net income for the quarter ended June 30, 2007 was $4.5 million, or $0.26 per diluted share, as compared with $2.8 million, or $0.24 per diluted share, for the second quarter of 2006. The financial results for the second quarter of 2007 reflect AmericanWest Bancorporation’s acquisition of Far West Bancorporation and its wholly-owned operating subsidiary Far West Bank, which was completed effective April 1, 2007.

“Our improved financial performance for the second quarter reflects the expected impact of the Far West Bank merger and our previously announced expense reduction initiatives,” remarked Robert M. Daugherty, President and Chief Executive Officer. “We are well positioned to achieve continued improvement in operating performance for the remainder of 2007.”

Net Interest Margin:

The tax-equivalent net interest margin for the second quarter of 2007 was 5.37%, an increase of 68 basis points from the prior quarter and of 30 basis points from the same period in 2006.

The average yield on loans for the second quarter of 2007 was 8.49%, an increase of 47 basis points over the first quarter of 2007 and 48 basis points from the same period in 2006. The increase in the average yield on loans is principally due to the Far West Bank portfolio acquired, which was partially offset by a change in the accounting for deferred loan fees and origination costs implemented during the first quarter of 2007.

AWBC – 2007 Q2 Earnings

July 26, 2007

Page 2 of 13

The Company’s net interest margin was also positively impacted by a reduction in the average cost of deposits of 35 basis points from the prior quarter. This was principally the result of the favorable deposit mix change related mainly to the Far West Bank deposits acquired. Non-interest bearing demand deposits represented 23% of total average deposits for the second quarter of 2007, up from 19% for the first quarter. The average cost of interest bearing deposits for the second quarter of 2007 was 3.53%, down 27 basis points from the prior quarter and up 37 basis points from the same quarter in 2006. The increase from the similar quarter of the prior year is attributed to higher rates paid on money market and time deposit accounts due to heightened market competition.

Loan Growth and Asset Quality:

Organic loan growth, which excludes the impact of loans acquired through mergers, was 16% on an annualized basis for the second quarter of 2007. Approximately $30 million, or 58%, of the second quarter organic loan growth was generated by the Company’s loan production offices located in South Jordan and Salt Lake City, Utah. Growth in the agricultural portfolio contributed approximately $18 million.

Total non-performing assets, net of government guarantees on loans, were 1.19% of total assets at June 30, 2007, as compared to 0.47% of total assets at March 31, 2007 and 1.05% of total assets at June 30, 2006. The increase over the prior quarter was principally due to placement of loans totaling $10.5 million related to a wood products manufacturing company on non-accrual status and the Far West Bank acquisition, which contributed $4.6 million to the non-performing loan total. Based on current collateral valuations and the establishment of specific reserves, management does not expect to record any additional provision for credit losses in connection with the workout of the wood products manufacturing loans. Total foreclosed assets at June 30, 2007 had a carrying value of $213,000 and were comprised of two properties, both of which are expected to be sold without any significant loss by the end of 2007. During the second quarter of 2007, the Company recognized a gain of $55,000 on the sale of a foreclosed property.

The Company recognized a provision for credit losses of $1.8 million, or 0.43% of average loans on an annualized basis, for the quarter ended June 30, 2007 as compared to $704,000, or 0.24% of average loans, for the quarter ended June 30, 2006. For the quarter ended June 30, 2007, annualized net charge-offs as a percentage of average loans were 0.46% as compared to 0.26% in the same quarter of the prior year. Included in net charge-offs for the second quarter of 2007 was $1.5 million related to the wood products manufacturing loan relationship described above. For the six month period ended June 30, 2007, the annualized provision for loan losses and net charge-offs represented 0.25% and 0.33% of total loans, respectively.

The allowance for credit losses, which is comprised of the allowance for loan losses and reserve for unfunded commitments, was $23.2 million, or 1.41% of total loans, at June 30, 2007 as compared to $15.6 million, or 1.25% of total loans, at March 31, 2007. The increase in the allowance for credit losses was principally due to the addition of approximately $7.8 million acquired in connection with the Far West Bank merger, which represented 2.22% of the acquired loans. The allowance for credit losses represented 98% of total non-performing loans (net of government guarantees) as of June 30, 2007.

Deposits and Borrowed Funds:

Total deposits as of June 30, 2007 were $1.5 billion, an increase of $343 million from March 31, 2007. On an organic basis, total deposits increased by 6% over the prior year, with growth in the interest-bearing transaction

AWBC – 2007 Q2 Earnings

July 26, 2007

Page 3 of 13

and money market account category (11%) and certificates of deposit (7%) offset by a decline in demand deposits (7%). On an organic basis, total deposits declined by approximately $40 million during the second quarter of 2007. This decline was principally due to reductions in public entity certificate of deposits of $37 million, and non-interest bearing demand deposits of $11 million offset by an increase in short-term brokered certificates of deposit of $25 million.

Total FHLB borrowings at June 30, 2007 were $157 million, an increase of $84 million over March 31, 2007 and $29 million over June 30, 2006. The increased level of FHLB borrowing for both periods provided funding for loan growth in excess of deposit growth.

Non-interest Income and Expense:

Non-interest income was $4.7 million for the quarter ended June 30, 2007 as compared to $2.2 million for the same period in 2006. This increase is due principally to growth in deposit service charges of $1.1 million, or 80%, increased mortgage banking revenue of $599,000, or 148%, and an increase in bank-owned life insurance revenue of $154,000. Deposit accounts acquired in the Far West Bank merger contributed $923,000, or 37%, of the second quarter 2007 deposit service charge income. The growth of mortgage banking revenue is attributed to increased originations due to additions to the lending staff in Washington and Idaho during the first quarter of 2007 and increased production resulting from the Far West Bank merger. The increase in the bank-owned life insurance income is mainly a result of insurance policies acquired through the merger. Included in non-interest income for the second quarter of 2007 were net gains of $129,000 related to the sale of two financial center facilities, attributed to a gain of $319,000 on the sale of an occupied financial center which is being relocated to a new leased facility, partially offset by a write-down on another vacant building of $190,000. The vacant property is under a contract for sale that is expected to close during the third quarter of 2007 and no additional gain or loss is expected.

Non-interest expense was $19.0 million for the quarter ended June 30, 2007 as compared to $12.7 million for same period in 2006 and $13.8 million for the first quarter of 2007. The increase is related mainly to salaries and employee benefits expense which increased $4.0 million, or 55%, from the same period in 2006 and $3.0 million, or 36%, over the previous quarter. The majority of this increase is related to growth in full-time equivalent employees from the Far West Bank merger and staff additions related to residential mortgage lending, four new financial centers and the two Utah loan production offices opened since late 2006.

The Company recorded a core deposit intangible asset of $12.9 million in connection with Far West Bank acquisition which is being amortized on an accelerated basis. The related amortization expense recognized during the second quarter of 2007 was $793,000. Also included in non-interest expenses are costs associated with mergers that do not qualify for capitalization. Total merger-related expenses recognized during the second quarter of 2007 were $263,000, or $0.02 per diluted share on an after-tax basis, as compared to $102,000 for the first quarter of 2007 and $233,000 for the same period in 2006.

The efficiency ratio has improved significantly to 64.7% for the quarter ended June 30, 2007, as compared to 78.6% in the prior quarter and 70.0% for the same period in 2006.

AWBC – 2007 Q2 Earnings

July 26, 2007

Page 4 of 13

Income Taxes:

The effective tax rate for the quarter ended June 30, 2007 was 34.9%, as compared to 35.2% for the first quarter of 2007 and 35.9% for the second quarter of 2006. The decrease in the effective tax rate is principally related to the recapture of certain tax credits during 2006.

Earnings Conference Call:

The second quarter earnings conference call will be held Thursday, July 26, 2007 at 10:00 a.m. PDT (1:00 p.m. EDT). Management will discuss the second quarter 2007 operating results and provide an update on recent initiatives. Shareholders, analysts and other interested parties are invited to join the call. The telephone access number is (877) 407-0782 and the pass code is “AWBC.”

About AmericanWest Bancorporation:

AmericanWest Bancorporation is a bank holding company whose principal subsidiary is AmericanWest Bank, which includes Far West Bank, operating as an integrated division of AmericanWest Bank. AmericanWest Bank is a community bank with 62 financial centers and three loan production offices located in Washington, Northern Idaho and Utah. For further information on the Company, please visit our web site at www.awbank.net/IR.

This press release includes forward-looking statements, and AmericanWest Bancorporation intends for such statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements describe AmericanWest Bancorporation’s expectations regarding future events, including the improvements in operating performance, the successful workout of certain non-performing loans and the sale of foreclosed and other bank owned property at current carrying values. Future events are difficult to predict and are subject to risk and uncertainty which could cause actual results to differ materially and adversely. Additional information regarding risks and uncertainties is included in AmericanWest Bancorporation’s periodic filings on Forms 10-K and 10-Q with the Securities and Exchange Commission. AmericanWest Bancorporation undertakes no obligation to revise or amend any forward-looking statements to reflect subsequent events or circumstances.

- more -

AWBC – 2007 Q2 Earnings

July 26, 2007

Page 5 of 13

AmericanWest Bancorporation

Selected Consolidated Financial Highlights

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

Consolidated Statements of Income:

	For the three months ended:
	6/30/2007		3/31/2007		6/30/2006
INTEREST INCOME
Interest and fees on loans	$	34,825	$	24,329	$	23,535
Interest on securities		844		462		458
Other interest income		85		71		28
TOTAL INTEREST INCOME		35,754		24,862		24,021
INTEREST EXPENSE
Interest on deposits		10,234		8,520		6,551
Interest on borrowings		2,519		1,608		1,957
TOTAL INTEREST EXPENSE		12,753		10,128		8,508
NET INTEREST INCOME		23,001		14,734		15,513
Provision for credit losses		1,750		—		704
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		21,251		14,734		14,809
NON-INTEREST INCOME
Fees and service charges on deposits		2,498		1,390		1,388
Fees on mortgage loan sales		1,004		342		405
Other		1,185		673		397
TOTAL NON-INTEREST INCOME		4,687		2,405		2,190
NON-INTEREST EXPENSE
Salaries and employee benefits		11,409		8,418		7,376
Equipment expense		1,773		1,261		953
Occupancy expense, net		1,388		1,227		1,018
Amortization of intangible assets		1,063		291		294
State business and occupation tax		323		304		312
Foreclosed real estate and other foreclosed assets expense		74		48		81
Other		2,934		2,218		2,650
TOTAL NON-INTEREST EXPENSE		18,964		13,767		12,684
INCOME BEFORE PROVISION FOR INCOME TAX		6,974		3,372		4,315
PROVISION FOR INCOME TAX		2,433		1,187		1,547
NET INCOME	$	4,541	$	2,185	$	2,768
Basic earnings per common share	$	0.26	$	0.19	$	0.24
Diluted earnings per common share	$	0.26	$	0.19	$	0.24
Basic weighted average shares outstanding		17,177,214		11,412,991		11,317,386
Diluted weighted average shares outstanding		17,290,389		11,540,998		11,511,564
Ending book value per share	$	16.46	$	13.54	$	13.09
Ending tangible book value per share	$	7.84	$	10.02	$	9.46
Ending shares outstanding		17,185,649		11,424,831		11,362,267

- more -

AWBC – 2007 Q2 Earnings

July 26, 2007

Page 6 of 13

AmericanWest Bancorporation

Selected Consolidated Financial Highlights

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

Consolidated Statements of Income:

	For the six months ended:
	6/30/2007		6/30/2006
INTEREST INCOME
Interest and fees on loans	$	59,154	$	42,392
Interest on securities		1,306		916
Other interest income		156		79
TOTAL INTEREST INCOME		60,616		43,387
INTEREST EXPENSE
Interest on deposits		18,754		11,587
Interest on borrowings		4,127		3,064
TOTAL INTEREST EXPENSE		22,881		14,651
NET INTEREST INCOME		37,735		28,736
Provision for credit losses		1,750		1,486
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		35,985		27,250
NON-INTEREST INCOME
Fees and service charges on deposits		3,888		2,554
Fees on mortgage loan sales		1,346		685
Other		1,858		707
TOTAL NON-INTEREST INCOME		7,092		3,946
NON-INTEREST EXPENSE
Salaries and employee benefits		19,827		14,267
Equipment expense		3,034		1,840
Occupancy expense, net		2,615		1,942
Amortization of intangible assets		1,354		394
State business and occupation tax		627		566
Foreclosed real estate and other foreclosed assets expense		122		507
Other		5,152		4,836
TOTAL NON-INTEREST EXPENSE		32,731		24,352
INCOME BEFORE PROVISION FOR INCOME TAX		10,346		6,844
PROVISION FOR INCOME TAX		3,620		2,427
NET INCOME	$	6,726	$	4,417
Basic earnings per common share	$	0.47	$	0.40
Diluted earnings per common share	$	0.47	$	0.39
Basic weighted average shares outstanding		14,311,026		11,038,376
Diluted weighted average shares outstanding		14,431,576		11,229,382
Ending book value per share	$	16.46	$	13.09
Ending tangible book value per share	$	7.84	$	9.46
Ending shares outstanding		17,185,649		11,362,267

- more -

AWBC – 2007 Q2 Earnings

July 26, 2007

Page 7 of 13

AmericanWest Bancorporation

Selected Consolidated Financial Highlights

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

Consolidated Statement of Condition:

	June 30, 2007			March 31, 2007		December 31, 2006		June 30, 2006
ASSETS
Cash and due from banks	$	58,850		$	64,973	$	45,866	$	41,467
Overnight interest bearing deposits with other banks		688			481		9,863		885
Cash and cash equivalents		59,538			65,454		55,729		42,352
Securities, available-for-sale at fair value		68,979			40,156		39,518		44,783
Loans, net of allowance for loan losses		1,625,242			1,231,731		1,204,519		1,175,454
Loans, held for sale		13,051			6,904		2,913		5,439
Accrued interest receivable		11,816			8,275		8,311		8,197
FHLB stock		7,801			6,319		6,319		6,319
Premises and equipment, net		44,116			30,985		30,484		26,574
Foreclosed real estate and other foreclosed assets		213			1,013		644		876
Bank owned life insurance		28,550			19,894		19,716		19,357
Goodwill		129,147			33,073		33,073		33,136
Intangible assets		19,068			7,215		7,506		8,094
Other assets		4,084			7,627		7,796		6,293
TOTAL ASSETS	$	2,011,605		$	1,458,646	$	1,416,528	$	1,376,874
LIABILITIES
Non-interest bearing demand deposits	$	348,763		$	217,967	$	236,375	$	223,561
Interest bearing deposits:
NOW, savings accounts and MMDA		659,246			503,126		476,852		443,250
Time, $100,000 and over		270,270			251,088		217,508		216,974
Other time		231,887			194,967		193,204		181,840
TOTAL DEPOSITS		1,510,166			1,167,148		1,123,939		1,065,625
FHLB advances		157,329			73,543		105,759		128,041
Other borrowings		274			8,247		307		3,441
Junior subordinated debt		41,239			41,239		20,620		20,620
Accrued interest payable		5,049			4,442		4,270		2,976
Other liabilities		14,680			9,296		9,596		7,476
TOTAL LIABILITIES		1,728,737			1,303,915		1,264,491		1,228,179
STOCKHOLDERS’ EQUITY
Common stock, no par		252,951			128,261		127,396		126,985
Retained earnings		30,273			26,419		24,576		22,045
Accumulated other comprehensive income (loss), net of tax		(356	)		51		65		(335	)
TOTAL STOCKHOLDERS’ EQUITY		282,868			154,731		152,037		148,695
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,011,605		$	1,458,646	$	1,416,528	$	1,376,874

- more -

AWBC – 2007 Q2 Earnings

July 26, 2007

Page 8 of 13

AmericanWest Bancorporation

Selected Consolidated Financial Highlights

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

	Three Months Ended
Financial Ratios, annualized:	6/30/2007		3/31/2007		6/30/2006
Return on average assets	0.92	%	0.63	%	0.82	%
Return on average equity	6.46	%	5.75	%	7.61	%
Return on tangible average equity	13.60	%	7.80	%	10.33	%
Efficiency ratio	64.65	%	78.63	%	69.99	%
Non-interest income to average assets	0.95	%	0.70	%	0.65	%
Non-interest expenses to average assets	3.83	%	3.98	%	3.76	%
Net interest margin to average earning assets (1)	5.37	%	4.69	%	5.07	%
Ending shareholders’ equity to assets	14.06	%	10.61	%	10.80	%
Ending tangible shareholders’ equity to tangible assets	7.23	%	8.07	%	8.05	%
	Six Months Ended
Year to Date Financial Ratios, annualized:	6/30/2007		6/30/2006
Return on average assets	0.80	%	0.72	%
Return on average equity	6.20	%	6.55	%
Return on tangible average equity	10.82	%	8.24	%
Efficiency ratio	70.00	%	73.31	%
Non-interest income to average assets	0.84	%	0.64	%
Non-interest expenses to average assets	3.89	%	3.95	%
Net interest margin to average earning assets (1)	5.08	%	5.09	%

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

- more -

AWBC – 2007 Q2 Earnings

July 26, 2007

Page 9 of 13

AmericanWest Bancorporation

Selected Consolidated Financial Highlights

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

	6/30/2007			3/31/2007			12/31/2006			6/30/2006
Loan Portfolio:
Commercial real estate	$	790,504		$	676,442		$	651,386		$	604,337
Commercial and industrial		438,642			298,888			283,889			297,855
Agricultural		146,461			120,445			141,646			157,290
Residential construction		122,115			51,472			47,235			35,548
Residential mortgage		99,522			79,002			74,222			69,564
Installment and other		53,075			21,913			22,508			25,559
Total loans		1,650,319			1,248,162			1,220,886			1,190,153
Allowance for loan losses		(21,830	)		(14,657	)		(15,136	)		(13,863	)
Deferred loan fees, net of deferred costs		(3,247	)		(1,774	)		(1,231	)		(836	)
Net loans	$	1,625,242		$	1,231,731		$	1,204,519		$	1,175,454
Non-performing Assets:
Accruing loans over 90 days past due	$	0		$	0		$	0		$	0
Nonaccrual loans (1)		23,640			5,819			11,500			13,577
Total non-performing loans	$	23,640		$	5,819		$	11,500		$	13,577
Foreclosed real estate and other foreclosed assets		213			1,013			644			876
Total non-performing assets	$	23,853		$	6,832		$	12,144		$	14,453
Allowance for Credit Losses:
Allowance for loan losses	$	21,830		$	14,657		$	15,136		$	13,863
Reserve for unfunded commitments		1,383			914			881			664
Allowance for credit losses	$	23,213		$	15,571		$	16,017		$	14,527
Credit Quality Ratios:
Non-performing loans to total gross loans (1)		1.43	%		0.47	%		0.94	%		1.14	%
Non-performing assets to total assets (1)		1.19	%		0.47	%		0.86	%		1.05	%
Allowance for loan loss to total gross loans		1.32	%		1.17	%		1.24	%		1.16	%
Allowance for credit losses to total gross loans		1.41	%		1.25	%		1.31	%		1.22	%
Allowance for credit losses to non-performing loans (1)		98.19	%		267.59	%		139.28	%		107.00	%

(1) Amounts and ratios shown net of government guarantees on non-performing loans of $1,058, $2,339 $3,978, and $2,007 respectively.

- more -

AWBC – 2007 Q2 Earnings

July 26, 2007

Page 10 of 13

AmericanWest Bancorporation

Selected Consolidated Financial Highlights

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

	Three Months Ended									Six Months Ended
	6/30/2007			3/31/2007			6/30/2006			6/30/2007			6/30/2006
Allowance for Loan Losses:
Balance, beginning of period	$	14,657		$	15,136		$	14,015		$	15,136		$	13,895
Provision for loan losses		1,538			(33	)		622			1,505			1,288
Allowance related to acquired loans		7,529			—			—			7,529			2,068
Loans charged-off		(2,074	)		(546	)		(917	)		(2,620	)		(3,644	)
Recoveries		180			100			143			280			256
Balance, end of period	$	21,830		$	14,657		$	13,863		$	21,830		$	13,863
Reserve for Unfunded Commitments:
Balance, beginning of period	$	914		$	881		$	582		$	881		$	466
Provision for unfunded commitments		212			33			82			245			198
Reserve related to acquired unfunded commitments		257			—			—			257			—
Balance, end of period	$	1,383		$	914		$	664		$	1,383		$	664
Net charge-offs to average gross loans (1)		0.46	%		0.15	%		0.26	%		0.33	%		0.62	%
Provision for credit losses to average gross loans (1)		0.43	%		0.00	%		0.24	%		0.25	%		0.27	%

(1) Quarterly ratios are annualized.

- more -

AWBC – 2007 Q2 Earnings

July 26, 2007

Page 11 of 13

AmericanWest Bancorporation

Selected Consolidated Financial Highlights

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

Quarter to Date Net Interest Margin:

	Three Months Ended June 30, 2007						Three Months Ended March 31, 2007						Three Months Ended June 30, 2006
($ in thousands)	Average Balance		Interest		%		Average Balance		Interest		%		Average Balance		Interest		%
Assets
Loans	$	1,644,490	$	34,825	8.49	%	$	1,229,508	$	24,329	8.02	%	$	1,178,263	$	23,535	8.01	%
Taxable securities		47,883		625	5.24	%		30,267		369	4.94	%		34,574		357	4.14	%
Non-taxable securities		21,128		330	6.26	%		8,974		142	6.42	%		10,507		153	5.84	%
FHLB Stock		7,524		12	0.64	%		6,319		6	0.39	%		6,319		—	0.00	%
Overnight deposits with other banks and other		5,085		73	5.76	%		4,494		65	5.87	%		2,451		28	4.58	%
Total interest earning assets		1,726,110		35,865	8.33	%		1,279,562		24,911	7.90	%		1,232,114		24,073	7.84	%
Non-interest earning assets		261,758						122,507						119,755
Total assets	$	1,987,868					$	1,402,069					$	1,351,869
Liabilities
Interest bearing demand deposits	$	146,496	$	268	0.73	%	$	88,671	$	178	0.81	%	$	93,111	$	172	0.74	%
Savings and MMDA deposits		521,396		3,970	3.05	%		386,572		3,097	3.25	%		354,325		2,494	2.82	%
Time deposits		496,021		5,996	4.85	%		434,822		5,245	4.89	%		384,128		3,885	4.06	%
Total interest bearing deposits		1,163,913		10,234	3.53	%		910,065		8,520	3.80	%		831,564		6,551	3.16	%
Overnight borrowings		58,644		826	5.65	%		22,204		305	5.57	%		70,294		894	5.10	%
Junior subordinated debt		41,239		766	7.45	%		22,911		462	8.18	%		20,280		419	8.29	%
Other borrowings		69,164		927	5.38	%		62,128		841	5.49	%		52,029		644	4.96	%
Total interest bearing liabilities		1,332,960		12,753	3.84	%		1,017,308		10,128	4.04	%		974,167		8,508	3.50	%
Non-interest bearing demand deposits		351,751						218,213						222,516
Other non-interest bearing liabilities		21,013						12,540						9,207
Total liabilities		1,705,724						1,248,061						1,205,890
Stockholders’ Equity		282,144						154,008						145,979
Total liabilities and stockholders’ equity	$	1,987,868					$	1,402,069					$	1,351,869
Net interest income and spread			$	23,112	4.49	%			$	14,783	3.86	%			$	15,565	4.34	%
Net interest margin to average earning assets					5.37	%					4.69	%					5.07	%

- more -

AWBC – 2007 Q2 Earnings

July 26, 2007

Page 12 of 13

AmericanWest Bancorporation

Selected Consolidated Financial Highlights

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

Year to Date Net Interest Margin:

	Six Months Ended June 30,
	2007						2006
($ in thousands)	Average Balance		Interest		%		Average Balance		Interest		%
Assets
Loans	$	1,438,143	$	59,154	8.29	%	$	1,093,338	$	42,392	7.82	%
Taxable securities		39,124		995	5.13	%		29,767		730	4.95	%
Nontaxable securities		15,084		471	6.30	%		9,405		282	6.05	%
FHLB Stock		6,925		18	0.52	%		5,922		—	0.00	%
Overnight deposits with other banks and other		4,791		138	5.81	%		3,035		79	5.25	%
Total interest earning assets		1,504,067		60,776	8.15	%		1,141,467		43,483	7.68	%
Noninterest earning assets		192,774						101,981
Total assets	$	1,696,841					$	1,243,448
Liabilities
Interest bearing demand deposits	$	117,743	$	446	0.76	%	$	86,494	$	314	0.73	%
Savings and MMDA deposits		454,357		7,067	3.14	%		337,363		4,475	2.67	%
Time deposits		465,591		11,241	4.87	%		353,115		6,798	3.88	%
Total interest bearing deposits		1,037,691		18,754	3.64	%		776,972		11,587	3.01	%
Overnight borrowings		40,524		1,130	5.62	%		44,160		1,085	4.95	%
Junior subordinated debt		32,126		1,228	7.71	%		16,040		674	8.47	%
Other borrowings		65,664		1,769	5.43	%		55,632		1,305	4.73	%
Total interest bearing liabilities		1,176,005		22,881	3.92	%		892,804		14,651	3.31	%
Noninterest bearing demand deposits		285,351						205,770
Other noninterest bearing liabilities		16,800						8,928
Total liabilities		1,478,156						1,107,502
Stockholders’ Equity		218,685						135,946
Total liabilities and stockholders’ equity	$	1,696,841					$	1,243,448
Net interest income and spread			$	37,895	4.23	%			$	28,832	4.37	%
Net interest margin to average earning assets					5.08	%					5.09	%

The above net interest margin tables include non-accrual and loans held for sale in the average loan balances. Tax exempt securities income has been presented using a tax equivalent basis and an assumed tax rate of 34%.

- more -

AWBC – 2007 Q2 Earnings

July 26, 2007

Page 13 of 13

AmericanWest Bancorporation

Selected Consolidated Financial Highlights

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

	Loans			Deposits			Assets
As reported 6/30/07	$	1,650,319		$	1,510,166		$	2,011,605
less: 12/31/06 balances		1,220,886			1,123,939			1,416,528
Total growth year to date	$	429,433		$	386,227		$	595,077
less: acquisition of FWB		350,891			383,386			547,341
Organic growth	$	78,542		$	2,841		$	47,736
Annualized organic growth rate		13.0	%		0.5	%		6.8	%

- ### -