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) January 31, 2008

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 January 31, 2008, AmericanWest Bancorporation issued a press release announcing its financial results for the fourth 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 January 31, 2008, titled “AmericanWest Bancorporation Announces 2007 Fourth 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: January 31, 2008	/s/ Patrick J. Rusnak
	Patrick J. Rusnak
	EVP and Chief Operating Officer

EX-99.1

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Exhibit 99.1

AMERICANWEST BANCORPORATION

NEWS RELEASE

AMERICANWEST BANCORPORATION ANNOUNCES

2007 FOURTH QUARTER FINANCIAL RESULTS

SPOKANE, WASHINGTON, January 31, 2008 (Business Wire) - AmericanWest Bancorporation (NASDAQ: AWBC) today announced its fourth quarter 2007 financial results, which included the following:

• Annualized loan growth of 10%

• Tax-equivalent net interest margin of 4.97%

• Provision for loan losses of $14.6 million

• Non-interest revenue growth of 9% annualized over Q3 2007

• Non-performing assets/total assets ratio of 1.90%

For the quarter ended December 31, 2007, the Company recognized a net loss of $3.3 million, or $0.19 per diluted share, as compared with net income of $5.3 million, or $0.31 per diluted share for the third quarter 2007 and $2.3 million, or $0.20 per diluted share, for the fourth quarter of 2006. The fourth quarter financial results were negatively impacted by a provision for loan losses of $14.6 million, or $0.85 per diluted share before tax, recognized principally due to deterioration in the residential construction and development segment of the loan portfolio. For the year ended December 31, 2007, the Company reported net income of $8.7 million, or $0.55 per diluted share, as compared with $7.6 million, or $0.67 per diluted share for 2006.

“Our fourth quarter operating results, although reflective of the difficult overall operating environment and continued deterioration of the residential real estate sector, were clearly a disappointment,” remarked Robert M. Daugherty, President and Chief Executive Officer. “We took a conservative approach with respect to downgrading and placing loans on non-accrual status, recognizing charge-offs and building the allowance to loan ratio by over 20 basis points during the fourth quarter, consistent with our credit risk management practices.”

Daugherty added, “While we expect that construction and development credit issues will remain a challenge for us in 2008, we also see continued opportunities in the C&I and SBA lending arena. And, of course, expense control will remain a top priority as we look to continue the significant operating efficiency progress made during 2007.”

Net Interest Margin:

The tax-equivalent net interest margin for the fourth quarter of 2007 was 4.97%, a decrease of 25 basis points from the prior quarter and a decrease of 5 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 39 basis points, offset by a 21 basis point reduction in the cost of interest bearing liabilities.

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The average yield on loans for the fourth quarter of 2007 was 8.03%, a decrease of 42 basis points from the third quarter of 2007 and a decrease of 19 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 re-pricing of approximately $813 million, or 46%, of the Company’s loan portfolio, which is indexed on a variable basis. The average prime rate for the fourth quarter of 2007 was 7.52%, down 66 basis points from the previous quarter. The average yield on loans was also negatively impacted by approximately 13 basis points as the result of the increased level of non-accrual loans.

The average cost of interest bearing deposits for the fourth quarter of 2007 was 3.43%, a decrease of 21 basis points from the third quarter of 2007 and a decrease of 20 basis points from the same period in 2006. The cost of borrowed funds, including FHLB advances and subordinated debt, was 5.51% for the fourth quarter of 2007, representing a decrease of 39 basis points from the prior quarter and 46 basis points from the same period in 2006. The decreases in the average cost of interest bearing deposits from the prior quarter and comparable prior year periods were principally due to the reduction in the paid rates on transaction accounts implemented during the fourth quarter of 2007 in response to lower short-term market interest rates, while the similar reduction in the average costs of borrowed funds was the result of lower short-term market rates such as LIBOR.

Loan Growth and Asset Quality:

Total loans increased by $42 million, or at an annualized growth rate 10%, during the fourth quarter of 2007. Approximately $36 million, or 86%, of the fourth quarter loan growth was generated by the Company’s offices located in South Jordan and Salt Lake City, Utah. Commercial and industrial loans increased by $9 million during the quarter (7% annualized growth), while agricultural loan balances declined by $11 million as a result of expected seasonal pay downs.

Total non-performing assets, net of government guarantees on loans, were 1.90% of total assets at December 31, 2007, as compared to 0.97% of total assets at September 30, 2007 and 0.86% of total assets at December 31, 2006. This increase was principally due to the $30 million of loans being placed on non-accrual status during the fourth quarter. Of the loans comprising this increase, nine had outstanding balances in excess of $500 thousand and totaled $29 million in the aggregate. Total foreclosed assets at December 31, 2007 totaled $1.2 million and consisted of four properties, as compared to $298 thousand at September 30, 2007. Non-performing loans, net of government guaranteed amounts, represented 2.21% of total loans at December 31, 2007, up 106 basis points from the prior quarter end level.

At December 31, 2007, the Company had approximately $26 million of loans which were not classified as non-performing, but internally identified as potential problem loans due to management’s concerns about the borrower’s financial condition. This represented approximately 1.5% of total outstanding loans, substantially unchanged from the percentage level at September 30, 2007 and December 31, 2006.

The Company recognized a provision for loan losses of $14.6 million, or 3.31% of average loans on an annualized basis, for the quarter ended December 31, 2007 as compared to $1.2 million, or 0.29% of average loans annualized for the prior quarter and $459 thousand, or 0.15% of average loans annualized, for same period in 2006. For the quarter ended December 31, 2007, net charge-offs were $10.4 million, or 2.35% of average

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loans annualized, as compared to 0.47% and 0.03% for the third quarter of 2007 and the same period in 2006, respectively. Of the total charge-offs recognized during the fourth quarter of 2007, $4.6 million was recorded in connection with specific impairments on two residential development loans which had a net combined carrying value of $8.5 million at December 31, 2007. In addition, a charge-off of $3.8 million was recognized in connection with four loans to a wood products manufacturing company due to the likely discontinuation of business operations and resulting curtailment of operating cash flows from the business. The remaining carrying value of these four loans as of December 31, 2007 was $3.8 million, a value that is fully supported by collateral appropriately discounted for current market valuation. For the year ended December 31, 2007, the provision for loan losses to total average loans and net charge-offs as a percentage of average loans were 1.09% and 0.93%, respectively.

The allowance for credit losses, which is comprised of the allowance for loan losses and reserve for unfunded commitments, was $26.6 million, or 1.51% of total loans, at December 31, 2007 as compared to $22.4 million, or 1.30% of total loans, at September 30, 2007. The allowance for credit losses represented 68% of total non-performing loans (net of government guarantees) as of December 31, 2007 as compared to 113% at September 30, 2007 and 139% at December 31, 2006.

Deposits and Borrowed Funds:

Total average deposits for the fourth quarter of 2007 were $1.57 billion, up $9.3 million over the third quarter of 2007. This growth was principally driven by increased average money market account balances of $30 million, offset by a $17 million reduction in average certificates of deposit. Total ending deposits at December 31, 2007 were $1.53 billion, down $68 million from September 30, 2007. This decrease was the result of lower demand deposit ($20 million), money market/savings ($21 million) and certificate of deposit ($27 million) balances.

Total FHLB and other borrowings at December 31, 2007 were $245 million, an increase of $113 million from September 30, 2007. This is mainly a result of loan growth during the quarter of $42 million while deposits declined $68 million and cash and cash equivalents declined $5 million.

Non-interest Income and Expense:

Non-interest income was $4.6 million for the quarter ended December 31, 2007 as compared to $4.5 million in the third quarter and $2.6 million for the same period in 2006. The increase from the prior quarter was due principally to increased deposit fees and service charges. During the fourth quarter of 2007, the sale of $1.7 million of recently originated SBA loans resulted in non-interest income of $69 thousand. These increases were offset by a decline in fees on mortgage loan sales of $51 thousand and reduction in gains on sales of foreclosed real estate of $84 thousand.

Non-interest expense was $18.4 million for the quarter ended December 31, 2007 as compared to $18.8 million for the quarter ended September 30, 2007 and $14.4 million for same period in 2006. The linked-quarter decrease was principally attributable to a reduction in salaries and benefits expense of $981 thousand. Net adjustments of performance-based incentive plan and other compensation-related accruals resulted in an expense reduction of approximately $1.2 million. This reduction was partially offset by the recognition of approximately $266 thousand of severance expense related to the consolidation of some back-office functions. Total occupancy and equipment related expense for the fourth quarter of 2007 was $3.5 million, representing an increase of $289 thousand over the third quarter of 2007. This increase was principally due to costs associated with the Company’s new Walker Center facility in Salt Lake City, Utah and relocation of the Sandpoint, Idaho financial center to a permanent facility during the fourth quarter.

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During the fourth quarter the provision for unfunded commitments was reclassified from the provision for loan losses to the other non-interest expense category on the income statement. All prior periods have been adjusted to reflect this reclassification in the attached statistical supplement. The cumulative amount of this reclassification for the first three quarters of 2007 was $264 thousand.

The efficiency ratio improved to 63.3% for the quarter ended December 31, 2007, as compared to 63.5% in the prior quarter and 76.4% for the same period in 2006.

Income Taxes:

The effective tax benefit rate for the quarter ended December 31, 2007 was 40.4%. This rate reflected the impact of the significantly lower full year pre-tax income as compared to the previously estimated amounts on which the accruals for the first nine months of the year were based.

The full year 2007 effective tax rate of 31.0% was reduced by approximately 105 basis points as the result of certain adjustments related to the Company’s 2006 federal tax return, which was filed during the third quarter of 2007. Additionally, the 2007 effective tax rate was increased by approximately 95 basis points due to the recapture of certain tax credits recognized in prior periods.

Capital:

Total shareholders’ equity at December 31, 2007 was $284 million and total tangible shareholders’ equity was $139 million, or $8.10 per share. The tangible equity ratio was 7.06% and the Company’s and AmericanWest Bank’s regulatory capital ratios remained in excess of the requirements for “well capitalized” status as of December 31, 2007.

Earnings Conference Call:

The fourth quarter earnings conference call will be held Thursday, January 31, 2008 at 10:00 a.m. PDT (1:00 p.m. EDT). Management will discuss the fourth 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 (800) 860-2442 and no pass code is required.

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 63 financial centers and two 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.

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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 performance of the construction and development loan portfolio, loan collateral valuations, growth prospects for commercial/industrial and SBA loans 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:
	12/31/2007			9/30/2007		12/31/2006
INTEREST INCOME
Interest and fees on loans	$	35,448		$	36,378	$	24,904
Interest on securities		811			814		491
Other interest income		66			159		86
TOTAL INTEREST INCOME		36,325			37,351		25,481
INTEREST EXPENSE
Interest on deposits		10,494			11,054		7,975
Interest on borrowings		2,967			2,807		1,667
TOTAL INTEREST EXPENSE		13,461			13,861		9,642
NET INTEREST INCOME		22,864			23,490		15,839
Provision for loan losses		14,605			1,231		459
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		8,259			22,259		15,380
NON-INTEREST INCOME
Fees and service charges on deposits		2,723			2,588		1,505
Fees on mortgage loan sales		889			940		576
Other		943			922		484
TOTAL NON-INTEREST INCOME		4,555			4,450		2,565
NON-INTEREST EXPENSE
Salaries and employee benefits		10,026			11,007		8,269
Equipment expense		1,873			1,699		1,115
Occupancy expense, net		1,605			1,490		1,161
Amortization of intangible assets		1,063			1,063		294
State business and occupation tax		328			335		289
Foreclosed real estate and other foreclosed assets expense		155			45		191
Other		3,375			3,156		3,032
TOTAL NON-INTEREST EXPENSE		18,425			18,795		14,351
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAX		(5,611	)		7,914		3,594
PROVISION (BENEFIT) FOR INCOME TAX		(2,267	)		2,565		1,343
NET INCOME (LOSS)	$	(3,344	)	$	5,349	$	2,251
Basic earnings (loss) per common share	$	(0.19	)	$	0.31	$	0.20
Diluted earnings (loss) per common share	$	(0.19	)	$	0.31	$	0.20
Basic weighted average shares outstanding		17,197,012			17,194,189		11,383,248
Diluted weighted average shares outstanding		17,276,477			17,268,007		11,531,166
Ending book value per share	$	16.52		$	16.76	$	13.35
Ending tangible book value per share	$	8.10		$	8.20	$	9.79
Ending shares outstanding		17,199,992			17,195,834		11,388,315

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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 year ended:
	12/31/2007		12/31/2006
INTEREST INCOME
Interest and fees on loans	$	130,980	$	91,743
Interest on securities		2,931		1,901
Other interest income		381		209
TOTAL INTEREST INCOME		134,292		93,853
INTEREST EXPENSE
Interest on deposits		40,302		26,843
Interest on borrowings		9,901		6,724
TOTAL INTEREST EXPENSE		50,203		33,567
NET INTEREST INCOME		84,089		60,286
Provision for loan losses		17,341		5,376
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		66,748		54,910
NON-INTEREST INCOME
Fees and service charges on deposits		9,199		5,526
Fees on mortgage loan sales		3,175		1,713
Other		3,723		2,036
TOTAL NON-INTEREST INCOME		16,097		9,275
NON-INTEREST EXPENSE
Salaries and employee benefits		40,860		30,284
Equipment expense		6,606		3,943
Occupancy expense, net		5,710		4,167
Amortization of intangible assets		3,480		982
State business and occupation tax		1,290		1,238
Foreclosed real estate and other foreclosed assets expense		322		750
Other		11,928		10,834
TOTAL NON-INTEREST EXPENSE		70,196		52,198
INCOME BEFORE PROVISION FOR INCOME TAX		12,649		11,987
PROVISION FOR INCOME TAX		3,918		4,357
NET INCOME	$	8,731	$	7,630
Basic earnings per common share	$	0.55	$	0.68
Diluted earnings per common share	$	0.55	$	0.67
Basic weighted average shares outstanding		15,766,041		11,182,526
Diluted weighted average shares outstanding		15,863,583		11,354,654
Ending book value per share	$	16.52	$	13.35
Ending tangible book value per share	$	8.10	$	9.79
Ending shares outstanding		17,199,992		11,388,315

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AmericanWest Bancorporation

Selected Consolidated Financial Highlights

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

Consolidated Statement of Condition:

	December 31, 2007		September 30, 2007			December 31, 2006
ASSETS
Cash and due from banks	$	46,591	$	50,818		$	45,866
Overnight interest bearing deposits with other banks		498		1,485			9,863
Cash and cash equivalents		47,089		52,303			55,729
Securities, available-for-sale at fair value		66,985		70,674			39,518
Loans, net of allowance for loan losses		1,738,838		1,700,895			1,204,519
Loans, held for sale		11,105		10,624			2,913
Accrued interest receivable		11,766		13,927			8,311
FHLB stock		7,801		7,801			6,319
Premises and equipment, net		47,426		45,182			30,484
Foreclosed real estate and other foreclosed assets		1,230		298			644
Bank owned life insurance		29,104		28,829			19,716
Goodwill		127,852		129,155			33,073
Intangible assets		16,942		18,005			7,506
Other assets		13,948		5,784			7,796
TOTAL ASSETS	$	2,120,086	$	2,083,477		$	1,416,528
LIABILITIES
Non-interest bearing demand deposits	$	342,701	$	362,387		$	236,375
Interest bearing deposits:
NOW, savings accounts and MMDA		678,314		698,887			476,852
Time, $100,000 and over		288,204		307,326			217,508
Other time		220,208		228,612			193,204
TOTAL DEPOSITS		1,529,427		1,597,212			1,123,939
FHLB advances		208,052		109,516			105,759
Other borrowings		36,611		21,671			307
Junior subordinated debt		41,239		41,239			20,620
Accrued interest payable		5,339		5,937			4,270
Other liabilities		15,238		19,749			9,596
TOTAL LIABILITIES		1,835,906		1,795,324			1,264,491
STOCKHOLDERS’ EQUITY
Common stock, no par		253,150		253,266			127,396
Retained earnings		30,902		34,934			24,576
Accumulated other comprehensive income (loss), net of tax		128		(47	)		65
TOTAL STOCKHOLDERS’ EQUITY		284,180		288,153			152,037
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,120,086	$	2,083,477		$	1,416,528

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AmericanWest Bancorporation

Selected Consolidated Financial Highlights

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

	Three Months Ended
	12/31/2007		9/30/2007		12/31/2006
Financial Ratios, annualized:
Return on average assets	-0.63	%	1.03	%	0.65	%
Return on average equity	-4.57	%	7.40	%	5.92	%
Return on tangible average equity	-9.24	%	15.26	%	8.10	%
Efficiency ratio	63.32	%	63.46	%	76.38	%
Non-interest income to average assets	0.86	%	0.86	%	0.74	%
Non-interest expenses to average assets	3.49	%	3.63	%	4.13	%
Net interest margin to average earning assets (1)	4.97	%	5.22	%	5.02	%
Ending shareholders’ equity to assets	13.40	%	13.83	%	10.73	%
Ending tangible shareholders’ equity to tangible assets	7.06	%	7.28	%	8.10	%
	Year Ended
	12/31/2007		12/31/2006
Year to Date Financial Ratios, annualized:
Return on average assets	0.46	%	0.58	%
Return on average equity	3.43	%	5.33	%
Return on tangible average equity	6.53	%	6.98	%
Efficiency ratio	66.59	%	73.63	%
Non-interest income to average assets	0.85	%	0.71	%
Non-interest expenses to average assets	3.72	%	3.99	%
Net interest margin to average earning assets (1)	5.09	%	5.06	%

(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)

	12/31/2007			9/30/2007			12/31/2006
Loan Portfolio:
Commercial real estate	$	853,874		$	821,844		$	651,386
Commercial and industrial		480,458			471,771			283,889
Agricultural		141,401			152,149			141,646
Residential construction		111,303			123,343			47,235
Residential mortgage		134,811			110,940			74,222
Installment and other		46,025			45,502			22,508
Total loans		1,767,872			1,725,549			1,220,886
Allowance for loan losses		(25,258	)		(21,023	)		(15,136	)
Deferred loan fees, net of deferred costs		(3,776	)		(3,631	)		(1,231	)
Net loans	$	1,738,838		$	1,700,895		$	1,204,519
Non-performing Assets:
Accruing loans over 90 days past due	$	0		$	0		$	0
Non-accrual loans (1)		39,098			19,846			11,500
Total non-performing loans	$	39,098		$	19,846		$	11,500
Foreclosed real estate and other foreclosed assets		1,230			298			644
Total non-performing assets	$	40,328		$	20,144		$	12,144
Allowance for Credit Losses:
Allowance for loan losses	$	25,258		$	21,023		$	15,136
Reserve for unfunded commitments		1,374			1,402			881
Allowance for credit losses	$	26,632		$	22,425		$	16,017
Credit Quality Ratios:
Non-performing loans to total gross loans (1)		2.21	%		1.15	%		0.94	%
Non-performing assets to total assets (1)		1.90	%		0.97	%		0.86	%
Allowance for loan loss to total gross loans		1.43	%		1.22	%		1.24	%
Allowance for credit losses to total gross loans		1.51	%		1.30	%		1.31	%
Allowance for credit losses to non-performing loans (1)		68.12	%		113.00	%		139.28	%

(1) Amounts and ratios shown net of government guarantees on non-performing loans of $992, $1,096, $3,978 and respectively.

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AmericanWest Bancorporation

Selected Consolidated Financial Highlights

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

	Three Months Ended									Year Ended
	12/31/2007			9/30/2007			12/31/2006			12/31/2007			12/31/2006
Allowance for Loan Losses:
Balance, beginning of period	$	21,023		$	21,830		$	14,761		$	15,136		$	13,895
Provision for loan losses		14,605			1,231			459			17,341			5,376
Allowance related to acquired loans		—			—			—			7,529			2,068
Loans charged-off		(10,502	)		(2,148	)		(371	)		(15,270	)		(7,021	)
Recoveries		132			110			287			522			818
Balance, end of period	$	25,258		$	21,023		$	15,136		$	25,258		$	15,136
Reserve for Unfunded Commitments:
Balance, beginning of period	$	1,402		$	1,383		$	716		$	881		$	466
Provision for unfunded commitments		(28	)		19			165			236			415
Reserve related to acquired unfunded commitments		—			—			—			257			—
Balance, end of period	$	1,374		$	1,402		$	881		$	1,374		$	881
Net charge-offs to average gross loans (1)		2.35	%		0.47	%		0.03	%		0.93	%		0.54	%
Provision for loan losses to average gross loans (1)		3.31	%		0.29	%		0.15	%		1.09	%		0.47	%

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

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January 31, 2008

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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 Dec 31, 2007						Three Months Ended Sept 30, 2007						Three Months Ended Dec 31, 2006
($ in thousands)	Average Balance		Interest		%		Average Balance		Interest		%		Average Balance		Interest		%
Assets
Loans (1)	$	1,751,528	$	35,448	8.03	%	$	1,707,745	$	36,378	8.45	%	$	1,201,896	$	24,904	8.22	%
Taxable securities		51,866		636	4.86	%		46,506		609	5.20	%		31,342		388	4.91	%
Non-taxable securities (2)		17,079		265	6.16	%		21,196		311	5.82	%		10,080		154	6.06	%
FHLB Stock		7,801		16	0.81	%		7,801		12	0.61	%		6,319		6	0.38	%
Overnight deposits with other banks and other		3,616		50	5.49	%		10,635		147	5.48	%		6,741		80	4.71	%
Total interest earning assets		1,831,890		36,415	7.89	%		1,793,883		37,457	8.28	%		1,256,378		25,532	8.06	%
Non-interest earning assets		260,105						260,876						121,056
Total assets	$	2,091,995					$	2,054,759					$	1,377,434
Liabilities
Interest bearing demand deposits	$	143,255	$	237	0.66	%	$	143,054	$	313	0.87	%	$	90,849	$	168	0.73	%
Savings and MMDA deposits		559,809		3,993	2.83	%		531,447		4,166	3.11	%		379,385		3,071	3.21	%
Time deposits		511,912		6,264	4.85	%		529,283		6,575	4.93	%		401,040		4,736	4.68	%
Total interest bearing deposits		1,214,976		10,494	3.43	%		1,203,784		11,054	3.64	%		871,274		7,975	3.63	%
Overnight borrowings		33,479		398	4.72	%		23,455		328	5.55	%		26,148		351	5.33	%
Junior subordinated debt		41,239		753	7.24	%		41,239		774	7.45	%		20,620		443	8.52	%
Other borrowings		138,861		1,816	5.19	%		124,004		1,705	5.45	%		64,080		873	5.41	%
Total interest bearing liabilities		1,428,555		13,461	3.74	%		1,392,482		13,861	3.95	%		982,122		9,642	3.89	%
Non-interest bearing demand deposits		351,653						353,587						233,191
Other non-interest bearing liabilities		21,582						21,919						11,163
Total liabilities		1,801,790						1,767,988						1,226,476
Stockholders’ Equity		290,205						286,771						150,958
Total liabilities and stockholders’ equity	$	2,091,995					$	2,054,759					$	1,377,434
Net interest income and spread			$	22,954	4.15	%			$	23,596	4.33	%			$	15,890	4.17	%
Net interest margin to average earning assets					4.97	%					5.22	%					5.02	%

(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 Q4 Earnings

January 31, 2008

Page 13 of 14

AmericanWest Bancorporation

Selected Consolidated Financial Highlights

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

Year to Date Net Interest Margin:

	Year Ended December 31,
	2007						2006
($ in thousands)	Average Balance		Interest		%		Average Balance		Interest		%
Assets
Loans (1)	$	1,585,078	$	130,980	8.26	%	$	1,145,558	$	91,743	8.01	%
Taxable securities		44,195		2,240	5.07	%		31,069		1,504	4.84	%
Nontaxable securities (2)		17,127		1,047	6.11	%		9,919		601	6.06	%
FHLB Stock		7,367		45	0.61	%		6,122		6	0.10	%
Overnight deposits with other banks and other		5,970		336	5.63	%		3,945		203	5.15	%
Total interest earning assets		1,659,737		134,648	8.11	%		1,196,613		94,057	7.86	%
Noninterest earning assets		226,912						110,739
Total assets	$	1,886,649					$	1,307,352
Liabilities
Interest bearing demand deposits	$	130,553	$	996	0.76	%	$	88,936	$	650	0.73	%
Savings and MMDA deposits		500,367		15,227	3.04	%		351,697		10,246	2.91	%
Time deposits		493,323		24,079	4.88	%		376,340		15,947	4.24	%
Total interest bearing deposits		1,124,243		40,302	3.58	%		816,973		26,843	3.29	%
Overnight borrowings		34,422		1,856	5.39	%		39,056		2,019	5.17	%
Junior subordinated debt		36,720		2,754	7.50	%		18,349		1,554	8.47	%
Other borrowings		98,819		5,291	5.35	%		61,585		3,151	5.12	%
Total interest bearing liabilities		1,294,204		50,203	3.88	%		935,963		33,567	3.59	%
Noninterest bearing demand deposits		318,878						218,230
Other noninterest bearing liabilities		19,301						9,955
Total liabilities		1,632,383						1,164,148
Stockholders’ Equity		254,266						143,204
Total liabilities and stockholders’ equity	$	1,886,649					$	1,307,352
Net interest income and spread			$	84,445	4.23	%			$	60,490	4.27	%
Net interest margin to average earning assets					5.09	%					5.06	%

(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 Q4 Earnings

January 31, 2008

Page 14 of 14

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 December 31, 2007	$	1,767,872		$	1,529,427		$	2,120,086
less: December 31, 2006 balances		1,220,886			1,123,939			1,416,528
Total growth year to date	$	546,986		$	405,488		$	703,558
less: acquisition of FWB		350,891			383,386			546,000
Organic growth	$	196,095		$	22,102		$	157,558
Annualized organic growth rate		16.1	%		2.0	%		11.1	%

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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