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 25, 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 October 25, 2007, AmericanWest Bancorporation issued a press release announcing its financial results for the third 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 October 25, 2007, titled “AmericanWest Bancorporation Announces 2007 Third 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: October 25, 2007	/s/ Patrick J. Rusnak
	Patrick J. Rusnak
	EVP and Chief Operating Officer

EX-99.1

Exhibit 99.1

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October 25, 2007

Page 1 of 13

AMERICANWEST BANCORPORATION

NEWS RELEASE

AMERICANWEST BANCORPORATION ANNOUNCES

2007 THIRD QUARTER FINANCIAL RESULTS

SPOKANE, WASHINGTON, October 25, 2007 (Business Wire) - AmericanWest Bancorporation (NASDAQ: AWBC) today announced its third quarter 2007 financial results, which included the following highlights:

• 19% increase in diluted earnings per share over the second quarter of 2007 and 288% over the same period in 2006

• Annualized loan growth of 18% and annualized core deposit growth of 16%

• Return on average assets of 1.03%, an improvement of 11 basis points over the second quarter of 2007 and 75 basis points over the same period in 2006

• 18% reduction in the level of non-performing assets as a percentage of total assets

Net income for the quarter ended September 30, 2007 was $5.3 million, or $0.31 per diluted share, as compared with $1.0 million, or $0.08 per diluted share, for the third quarter of 2006. The third quarter 2006 financial results were adversely impacted by a special provision for credit losses of $2.4 million, or $0.13 per share on an after-tax basis, which was recognized in connection with the charge-off of a single loan. Excluding the impact of this item, the increase in diluted earnings per share for the third quarter 2007 over the same period in 2006 was $0.10, or 48%. This increase is principally attributable to the positive impact of the merger with Far West Bancorporation (completed on April 1, 2007), balance sheet growth and expense control initiatives implemented during the first quarter of 2007.

“Our improved third quarter results reflect continued progress with execution of the Company’s strategy,” remarked Robert M. Daugherty, President and Chief Executive Officer. “We remain focused on improving our financial performance through balance sheet growth, expense control and diligence with asset quality.”

Net Interest Margin:

The tax-equivalent net interest margin for the third quarter of 2007 was 5.22%, a decrease of 15 basis points from the prior quarter, and an increase of 19 basis points from the same period in 2006. The decrease from the prior quarter is due to a decline in the yield on earning assets of 5 basis points and an increase in the cost of interest bearing liabilities of 11 basis points.

The average yield on loans for the third quarter of 2007 was 8.45%, a decrease of 4 basis points from the second quarter of 2007 and an increase of 29 basis points from the same period in 2006. The decrease in the average yield on loans from the prior quarter was principally attributable to the loss of interest on a large relationship which was placed on non-accrual status at the end of the second quarter and the reduction in the index rates on

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certain variable rate loans effective September 19, 2007. The increase over the same period of 2006 is principally due to the Far West Bank portfolio acquired, which was partially offset by a modification in the accounting for deferred loan fees and origination costs implemented during the first quarter of 2007.

The average cost of interest bearing deposits for the third quarter of 2007 was 3.64%, an increase of 11 basis points from the second quarter of 2007 and an increase of 21 basis points from the same period in 2006. The increase from the prior quarter was related to higher rates paid on deposit products. The total cost of deposits also increased 11 basis points as the average non-interest bearing deposits remained relatively constant at 23% of the total deposits.

Loan Growth and Asset Quality:

Loan growth was 18% on an annualized basis for the third quarter of 2007. Approximately $43 million, or 57%, of the third quarter loan growth was generated by the Company’s loan production offices located in South Jordan and Salt Lake City, Utah.

Total non-performing assets, net of government guarantees on loans, were 0.97% of total assets at September 30, 2007, as compared to 1.19% of total assets at June 30, 2007 and 0.76% of total assets at September 30, 2006. The decline during the quarter is mainly related to $1.3 million of pay-downs received and $1.6 million of charge-offs recorded on loans to a wood products manufacturing company that were placed on non-accrual status during the second quarter of 2007. Total foreclosed assets at September 30, 2007 had a carrying value of $298,000 and consisted of two properties. One property was sold during the third quarter with a minimal gain.

The Company recognized a provision for credit losses of $1.3 million, or 0.29% of average loans on an annualized basis, for the quarter ended September 30, 2007 as compared to $3.7 million, or 1.23% of average loans, for the quarter ended September 30, 2006. For the quarter ended September 30, 2007, annualized net charge-offs as a percentage of average loans were 0.47% as compared to 0.91% in the same quarter of the prior year. For the nine month period ended September 30, 2007, the annualized provision for loan losses to total average loans and net charge-offs as a percentage of average loans were 0.26% and 0.38%, respectively.

The allowance for credit losses, which is comprised of the allowance for loan losses and reserve for unfunded commitments, was $22.4 million, or 1.30% of total loans, at September 30, 2007 as compared to $23.2 million, or 1.41% of total loans, at June 30, 2007. The allowance for credit losses represented 113% of total non-performing loans (net of government guarantees) as of September 30, 2007 as compared to 98% at June 30, 2007 and 139% at December 31, 2006.

Deposits and Borrowed Funds:

Total deposits as of September 30, 2007 were $1.6 billion, an increase of $87 million from June 30, 2007. This increase consisted of increases in NOW, savings and money market accounts of $40 million including an increase in public money market accounts of $14 million. Time deposits increased $34 million during the quarter, and included $20 million of brokered certificates of deposit.

Total FHLB and other borrowings at September 30, 2007 were $131 million, a decrease of $26 million from June 30, 2007. This is mainly a result of deposit growth exceeding loan growth during the quarter by approximately $12 million and a decline in cash and cash equivalents of $7 million.

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Non-interest Income and Expense:

Non-interest income was $4.5 million for the quarter ended September 30, 2007 as compared to $4.7 million in the second quarter and $2.8 million for the same period in 2006. The decrease from the prior quarter is mainly attributed to a decline in net premises and equipment gains of $162,000 and a decline in mortgage loan servicing fees of $119,000. The decrease in mortgage loan servicing fees is attributable to the sale of a mortgage loan servicing portfolio which was acquired from Far West Bank. The mortgage loan servicing portfolio was sold in the second quarter and no gain or loss was recognized. During the third quarter, the Company recorded a gain of $82,000 related to a recovery on a foreclosed real estate property. This compares to a gain recorded in the second quarter of 2007 related to the sale of one foreclosed property of $55,000.

Non-interest expense was $18.8 million for the quarter ended September 30, 2007 as compared to $13.2 million for same period in 2006 and $19.0 million for the second quarter of 2007. The decrease from the second quarter of 2007 is primarily due to lower salaries and benefits expense resulting from a reduction in incentive accruals and an increase in deferred loan origination costs compared to the second quarter. The majority of the increase in salaries and benefits and total non-interest expenses over the third quarter of 2006 is related to growth in full-time equivalent employees from the Far West Bank merger and staff additions related to residential mortgage lending, new financial centers and two Utah loan production offices opened since late 2006.

The efficiency ratio improved to 63.4% for the quarter ended September 30, 2007, as compared to 64.7% in the prior quarter and 70.1% for the same period in 2006.

Income Taxes:

The effective tax rate for the quarter ended September 30, 2007 was 32.4%, as compared to 34.9% for the second quarter of 2007 and 37.9% for the third quarter of 2006. The decrease in the effective tax rate from the prior quarter is a result of adjustments related to the Company’s 2006 federal tax return which was filed during the third quarter of 2007. These adjustments were mainly the result of unanticipated tax credits received on an investment. Excluding this adjustment, the effective rate for the third quarter 2007 would have been 34.1%. The significant decline in the effective tax rate from the prior year is principally related to the recapture of certain tax credits during 2006 which are continuing in 2007 with less of an impact.

Earnings Conference Call:

The third quarter earnings conference call will be held Thursday, October 25, 2007 at 10:00 a.m. PDT (1:00 p.m. EDT). Management will discuss the third 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 no pass code is required.

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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, balance sheet growth and expense control. 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.

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AmericanWest Bancorporation

Selected Consolidated Financial Highlights

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

Consolidated Statements of Income:

	For the three months ended:
	9/30/2007		6/30/2007		9/30/2006
INTEREST INCOME
Interest and fees on loans	$	36,378	$	34,825	$	24,447
Interest on securities		814		844		494
Other interest income		159		85		44
TOTAL INTEREST INCOME		37,351		35,754		24,985
INTEREST EXPENSE
Interest on deposits		11,054		10,234		7,281
Interest on borrowings		2,807		2,519		1,993
TOTAL INTEREST EXPENSE		13,861		12,753		9,274
NET INTEREST INCOME		23,490		23,001		15,711
Provision for credit losses		1,250		1,750		3,681
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		22,240		21,251		12,030
NON-INTEREST INCOME
Fees and service charges on deposits		2,588		2,498		1,467
Fees on mortgage loan sales		940		1,004		452
Other		922		1,185		845
TOTAL NON-INTEREST INCOME		4,450		4,687		2,764
NON-INTEREST EXPENSE
Salaries and employee benefits		11,007		11,409		7,748
Equipment expense		1,699		1,773		988
Occupancy expense, net		1,490		1,388		1,064
Amortization of intangible assets		1,063		1,063		294
State business and occupation tax		335		323		383
Foreclosed real estate and other foreclosed assets expense		45		74		52
Other		3,137		2,934		2,716
TOTAL NON-INTEREST EXPENSE		18,776		18,964		13,245
INCOME BEFORE PROVISION FOR INCOME TAX		7,914		6,974		1,549
PROVISION FOR INCOME TAX		2,565		2,433		587
NET INCOME	$	5,349	$	4,541	$	962
Basic earnings per common share	$	0.31	$	0.26	$	0.08
Diluted earnings per common share	$	0.31	$	0.26	$	0.08
Basic weighted average shares outstanding		17,197,656		17,177,214		11,373,559
Diluted weighted average shares outstanding		17,268,007		17,290,389		11,530,546
Ending book value per share	$	16.76	$	16.46	$	13.18
Ending tangible book value per share	$	8.20	$	7.84	$	9.59
Ending shares outstanding		17,195,834		17,185,649		11,376,497

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AmericanWest Bancorporation

Selected Consolidated Financial Highlights

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

Consolidated Statements of Income:

	For the nine months ended:
	9/30/2007		9/30/2006
INTEREST INCOME
Interest and fees on loans	$	95,532	$	66,839
Interest on securities		2,120		1,410
Other interest income		315		123
TOTAL INTEREST INCOME		97,967		68,372
INTEREST EXPENSE
Interest on deposits		29,808		18,868
Interest on borrowings		6,934		5,057
TOTAL INTEREST EXPENSE		36,742		23,925
NET INTEREST INCOME		61,225		44,447
Provision for credit losses		3,000		5,167
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		58,225		39,280
NON-INTEREST INCOME
Fees and service charges on deposits		6,476		4,021
Fees on mortgage loan sales		2,286		1,137
Other		2,780		1,552
TOTAL NON-INTEREST INCOME		11,542		6,710
NON-INTEREST EXPENSE
Salaries and employee benefits		30,834		22,015
Equipment expense		4,733		2,828
Occupancy expense, net		4,105		3,006
Amortization of intangible assets		2,417		688
State business and occupation tax		962		949
Foreclosed real estate and other foreclosed assets expense		167		559
Other		8,289		7,552
TOTAL NON-INTEREST EXPENSE		51,507		37,597
INCOME BEFORE PROVISION FOR INCOME TAX		18,260		8,393
PROVISION FOR INCOME TAX		6,185		3,014
NET INCOME	$	12,075	$	5,379
Basic earnings per common share	$	0.79	$	0.48
Diluted earnings per common share	$	0.78	$	0.48
Basic weighted average shares outstanding		15,283,810		11,114,884
Diluted weighted average shares outstanding		15,387,443		11,295,170
Ending book value per share	$	16.76	$	13.18
Ending tangible book value per share	$	8.20	$	9.59
Ending shares outstanding		17,195,834		11,376,497

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AmericanWest Bancorporation

Selected Consolidated Financial Highlights

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

Consolidated Statement of Condition:
	September 30, 2007			June 30, 2007			December 31, 2006		September 30, 2006
ASSETS
Cash and due from banks	$	50,818		$	58,850		$	45,866	$	38,888
Overnight interest bearing deposits with other banks		1,485			688			9,863		175
Cash and cash equivalents		52,303			59,538			55,729		39,063
Securities, available-for-sale at fair value		70,674			68,979			39,518		42,758
Loans, net of allowance for loan losses		1,700,895			1,625,242			1,204,519		1,167,558
Loans, held for sale		10,624			13,051			2,913		7,672
Accrued interest receivable		13,927			11,816			8,311		8,958
FHLB stock		7,801			7,801			6,319		6,319
Premises and equipment, net		45,182			44,116			30,484		27,320
Foreclosed real estate and other foreclosed assets		298			213			644		573
Bank owned life insurance		28,829			28,550			19,716		19,537
Goodwill		129,155			129,147			33,073		33,068
Intangible assets		18,005			19,068			7,506		7,800
Other assets		5,784			4,084			7,796		7,631
TOTAL ASSETS	$	2,083,477		$	2,011,605		$	1,416,528	$	1,368,257
LIABILITIES
Non-interest bearing demand deposits	$	362,387		$	348,763		$	236,375	$	225,558
Interest bearing deposits:
NOW, savings accounts and MMDA		698,887			659,246			476,852		472,974
Time, $100,000 and over		307,326			270,270			217,508		214,736
Other time		228,612			231,887			193,204		187,425
TOTAL DEPOSITS		1,597,212			1,510,166			1,123,939		1,100,693
FHLB advances		109,516			157,329			105,759		80,575
Other borrowings		21,671			274			307		5,190
Junior subordinated debt		41,239			41,239			20,620		20,620
Accrued interest payable		5,937			5,049			4,270		3,617
Other liabilities		19,749			14,680			9,596		7,642
TOTAL LIABILITIES		1,795,324			1,728,737			1,264,491		1,218,337
STOCKHOLDERS’ EQUITY
Common stock, no par		253,266			252,951			127,396		127,242
Retained earnings		34,934			30,273			24,576		22,666
Accumulated other comprehensive income (loss), net of tax		(47	)		(356	)		65		12
TOTAL STOCKHOLDERS’ EQUITY		288,153			282,868			152,037		149,920
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,083,477		$	2,011,605		$	1,416,528	$	1,368,257

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AmericanWest Bancorporation

Selected Consolidated Financial Highlights

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

	Three Months Ended
Financial Ratios, annualized:	9/30/2007		6/30/2007		9/30/2006
Return on average assets	1.03	%	0.92	%	0.28	%
Return on average equity	7.40	%	6.46	%	2.55	%
Return on tangible average equity	15.26	%	13.60	%	3.51	%
Efficiency ratio	63.40	%	64.65	%	70.10	%
Non-interest income to average assets	0.86	%	0.95	%	0.80	%
Non-interest expenses to average assets	3.63	%	3.83	%	3.85	%
Net interest margin to average earning assets (1)	5.22	%	5.37	%	5.03	%
Ending shareholders’ equity to assets	13.83	%	14.06	%	10.96	%
Ending tangible shareholders’ equity to tangible assets	7.28	%	7.23	%	8.22	%
	Nine Months Ended
Year to Date Financial Ratios, annualized:	9/30/2007		9/30/2006
Return on average assets	0.89	%	0.56	%
Return on average equity	6.68	%	5.12	%
Return on tangible average equity	12.42	%	6.60	%
Efficiency ratio	67.46	%	72.15	%
Non-interest income to average assets	0.85	%	0.70	%
Non-interest expenses to average assets	3.79	%	3.92	%
Net interest margin to average earning assets (1)	5.13	%	5.07	%

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

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AmericanWest Bancorporation

Selected Consolidated Financial Highlights

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

	9/30/2007			6/30/2007			12/31/2006			9/30/2006
Loan Portfolio:
Commercial real estate	$	821,844		$	790,504		$	651,386		$	605,097
Commercial and industrial		471,771			438,642			283,889			281,956
Agricultural		152,149			146,461			141,646			155,875
Residential construction		123,343			122,115			47,235			40,523
Residential mortgage		110,940			99,522			74,222			74,910
Installment and other		45,502			53,075			22,508			24,846
Total loans		1,725,549			1,650,319			1,220,886			1,183,207
Allowance for loan losses		(21,023	)		(21,830	)		(15,136	)		(14,761	)
Deferred loan fees, net of deferred costs		(3,631	)		(3,247	)		(1,231	)		(888	)
Net loans	$	1,700,895		$	1,625,242		$	1,204,519		$	1,167,558
Non-performing Assets:
Accruing loans over 90 days past due	$	0		$	0		$	0		$	549
Nonaccrual loans (1)		19,846			23,640			11,500			9,255
Total non-performing loans	$	19,846		$	23,640		$	11,500		$	9,804
Foreclosed real estate and other foreclosed assets		298			213			644			573
Total non-performing assets	$	20,144		$	23,853		$	12,144		$	10,377
Allowance for Credit Losses:
Allowance for loan losses	$	21,023		$	21,830		$	15,136		$	14,761
Reserve for unfunded commitments		1,402			1,383			881			716
Allowance for credit losses	$	22,425		$	23,213		$	16,017		$	15,477
Credit Quality Ratios:
Non-performing loans to total gross loans (1)		1.15	%		1.43	%		0.94	%		0.83	%
Non-performing assets to total assets (1)		0.97	%		1.19	%		0.86	%		0.76	%
Allowance for loan loss to total gross loans		1.22	%		1.32	%		1.24	%		1.25	%
Allowance for credit losses to total gross loans		1.30	%		1.41	%		1.31	%		1.31	%
Allowance for credit losses to non-performing loans (1)		113.00	%		98.19	%		139.28	%		157.86	%

(1) Amounts and ratios shown net of government guarantees on non-performing loans of $1,096, $1,059 $3,978, and $1,764 respectively.

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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
	9/30/2007			6/30/2007			9/30/2006			9/30/2007			9/30/2006
Allowance for Loan Losses:
Balance, beginning of period	$	21,830		$	14,657		$	13,863		$	15,136		$	13,895
Provision for loan losses		1,231			1,538			3,629			2,736			4,917
Allowance related to acquired loans		—			7,529			—			7,529			2,068
Loans charged-off		(2,148	)		(2,074	)		(3,006	)		(4,768	)		(6,650	)
Recoveries		110			180			275			390			531
Balance, end of period	$	21,023		$	21,830		$	14,761		$	21,023		$	14,761
Reserve for Unfunded Commitments:
Balance, beginning of period	$	1,383		$	914		$	664		$	881		$	466
Provision for unfunded commitments		19			212			52			264			250
Reserve related to acquired unfunded commitments		—			257			—			257			—
Balance, end of period	$	1,402		$	1,383		$	716		$	1,402		$	716
Net charge-offs to average gross loans (1)		0.47	%		0.46	%		0.91	%		0.38	%		0.73	%
Provision for credit losses to average gross loans (1)		0.29	%		0.43	%		1.23	%		0.26	%		0.61	%

(1) Annualized ratio includes loans held for sale and non-accrual loans in average gross loans.

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AmericanWest Bancorporation

Selected Consolidated Financial Highlights

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

Quarter to Date Net Interest Margin:

	Three Months Ended Sept 30, 2007						Three Months Ended June 30, 2007						Three Months Ended Sept 30, 2006
($ in thousands)	Average Balance		Interest		%		Average Balance		Interest		%		Average Balance		Interest		%
Assets
Loans (1)	$	1,707,745	$	36,378	8.45	%	$	1,644,490	$	34,825	8.49	%	$	1,189,151	$	24,447	8.16	%
Taxable securities		46,506		609	5.20	%		47,883		625	5.24	%		33,361		386	4.59	%
Non-taxable securities (2)		21,196		311	5.82	%		21,128		330	6.26	%		10,769		165	6.08	%
FHLB Stock		7,801		12	0.61	%		7,524		12	0.64	%		6,319		—	0.00	%
Overnight deposits with other banks and other		10,635		147	5.48	%		5,085		73	5.76	%		3,106		44	5.62	%
Total interest earning assets		1,793,883		37,457	8.28	%		1,726,110		35,865	8.33	%		1,242,706		25,042	7.99	%
Non-interest earning assets		260,876						261,758						120,668
Total assets	$	2,054,759					$	1,987,868					$	1,363,374
Liabilities
Interest bearing demand deposits	$	143,054	$	313	0.87	%	$	146,496	$	268	0.73	%	$	91,827	$	168	0.73	%
Savings and MMDA deposits		531,447		4,166	3.11	%		521,396		3,970	3.05	%		352,140		2,700	3.04	%
Time deposits		529,283		6,575	4.93	%		496,021		5,996	4.85	%		397,454		4,413	4.41	%
Total interest bearing deposits		1,203,784		11,054	3.64	%		1,163,913		10,234	3.53	%		841,421		7,281	3.43	%
Overnight borrowings		23,455		328	5.55	%		58,644		826	5.65	%		42,273		582	5.46	%
Junior subordinated debt		41,239		774	7.45	%		41,239		766	7.45	%		20,620		438	8.43	%
Other borrowings		124,004		1,705	5.45	%		69,164		927	5.38	%		71,343		973	5.41	%
Total interest bearing liabilities		1,392,482		13,861	3.95	%		1,332,960		12,753	3.84	%		975,657		9,274	3.77	%
Non-interest bearing demand deposits		353,587						351,751						227,782
Other non-interest bearing liabilities		21,919						21,013						10,222
Total liabilities		1,767,988						1,705,724						1,213,661
Stockholders’ Equity		286,771						282,144						149,713
Total liabilities and stockholders’ equity	$	2,054,759					$	1,987,868					$	1,363,374
Net interest income and spread			$	23,596	4.33	%			$	23,112	4.49	%			$	15,768	4.22	%
Net interest margin to average earning assets					5.22	%					5.37	%					5.03	%

(1) Includes loans held for sale and non-accrual loans.

(2) Tax-exempt securities income has been presented using a tax equivalent basis and an assumed tax rate of 34%.

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AWBC – 2007 Q3 Earnings

October 25, 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:
	Nine Months Ended September 30,
	2007						2006
($ in thousands)	Average Balance		Interest		%		Average Balance		Interest		%
Assets
Loans (1)	$	1,528,993	$	95,532	8.35	%	$	1,126,255	$	66,839	7.93	%
Taxable securities		41,609		1,603	5.15	%		30,977		1,115	4.81	%
Nontaxable securities (2)		17,144		782	6.10	%		9,865		447	6.06	%
FHLB Stock		7,220		30	0.55	%		6,055		—	0.00	%
Overnight deposits with other banks and other		6,760		285	5.64	%		3,005		123	5.47	%
Total interest earning assets		1,601,726		98,232	8.20	%		1,176,157		68,524	7.79	%
Noninterest earning assets		215,714						107,694
Total assets	$	1,817,440					$	1,283,851
Liabilities
Interest bearing demand deposits	$	126,273	$	759	0.80	%	$	88,291	$	482	0.73	%
Savings and MMDA deposits		480,336		11,233	3.13	%		342,342		7,175	2.80	%
Time deposits		487,059		17,816	4.89	%		368,025		11,211	4.07	%
Total interest bearing deposits		1,093,668		29,808	3.64	%		798,658		18,868	3.16	%
Overnight borrowings		34,743		1,458	5.61	%		43,544		1,668	5.12	%
Junior subordinated debt		35,197		2,002	7.60	%		17,584		1,111	8.45	%
Other borrowings		85,325		3,474	5.44	%		60,745		2,278	5.01	%
Total interest bearing liabilities		1,248,933		36,742	3.93	%		920,531		23,925	3.47	%
Noninterest bearing demand deposits		308,341						213,184
Other noninterest bearing liabilities		18,522						9,548
Total liabilities		1,575,796						1,143,263
Stockholders’ Equity		241,644						140,588
Total liabilities and stockholders’ equity	$	1,817,440					$	1,283,851
Net interest income and spread			$	61,490	4.27	%			$	44,599	4.32	%
Net interest margin to average earning assets					5.13	%					5.07	%

(1) Includes loans held for sale and non-accrual loans.

(2) Tax-exempt securities income has been presented using a tax equivalent basis and an assumed tax rate of 34%.

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AWBC – 2007 Q3 Earnings

October 25, 2007

Page 13 of 13

AmericanWest Bancorporation

Selected Consolidated Financial Highlights

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

Year to Date Organic Growth:
	Loans			Deposits			Assets
As reported September 30, 2007	$	1,725,549		$	1,597,212		$	2,083,477
less: December 31, 2006 balances		1,220,886			1,123,939			1,416,528
Total growth year to date	$	504,663		$	473,273		$	666,949
less: acquisition of FWB		350,634			383,386			547,354
Organic growth	$	154,029		$	89,887		$	119,595
Annualized organic growth rate		16.9	%		10.7	%		11.3	%

Contacts:

AmericanWest Bancorporation

Robert M. Daugherty

President and CEO

509.344.5329

bdaugherty@awbank.net

or

Patrick J. Rusnak

Chief Operating Officer

509.232.1963

prusnak@awbank.net

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