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) April 30, 2009

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 April 30, 2009, AmericanWest Bancorporation issued a press release announcing its financial results for the first quarter of 2009 and an update on its capital restoration plan. 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 April 30, 2009, titled “AmericanWest Bancorporation Announces First Quarter 2009 Financial Results and Capital Restoration Plan Update”

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: April 30, 2009	/s/ Patrick J. Rusnak
	Patrick J. Rusnak
	Chief Executive Officer

EX-99.1

Exhibit 99.1

AWBC – 2009 Q1 Earnings

April 30, 2009

Page 1 of 12

AMERICANWEST BANCORPORATION

NEWS RELEASE

AMERICANWEST BANCORPORATION ANNOUNCES FIRST QUARTER

2009 FINANCIAL RESULTS AND CAPITAL RESTORATION PLAN UPDATE

SPOKANE, WASHINGTON - AmericanWest Bancorporation (NASDAQ: AWBC) today announced first quarter financial results which included the following:

• Total available liquidity remained stable with $130 million of liquid assets at March 31, 2009 as compared to $132 million at year end 2008 and $128 million at March 31, 2008.

• Net loans ended the quarter at $1.52 billion, a reduction of $58 million, or 4%, from year end 2008 and a reduction of $206 million, or 12%, over the past year.

• Total deposits remained stable at $1.54 billion at March 31, 2009 as compared to $1.57 billion at year end 2008 and $1.58 billion at March 31, 2008.

• Net interest margin was 3.34% for the first quarter of 2009 as compared to 3.39% for the fourth quarter of 2008 and 4.62% in the first quarter of 2008.

• Provision for loan losses was $13.7 million for the first quarter of 2009 which represents a reduction of $26.6 million, or 66%, from the fourth quarter of 2008 and an increase of $880 thousand, or 7%, as compared to the first quarter of 2008.

• Net charge-offs were $17.7 million in the first quarter as compared to $32.2 million in the fourth quarter of 2008 and $11.0 million in the first quarter of 2008.

• Mortgage banking revenue reached $1.9 million for the first quarter of 2009, a historic high and a 192% increase over the preceding quarter, and a 123% increase over the first quarter of 2008.

• Total non-interest expense was $20.6 million for Q1 2009, a decrease of 25% as compared to the preceding quarter and an increase of 10% (excluding impairment of goodwill) as compared to Q1 2008.

For the quarter ended March 31, 2009, the Company reported a net loss of $14.5 million, or $0.84 per share, as compared with a net loss of $57.7 million, or $3.35 per share, for the fourth quarter of 2008 and net loss (excluding a $27.0 million goodwill impairment charge) of $4.6 million, or $0.26 per share, for the first quarter of 2008.

“We continue to aggressively address our problem assets issues, and we believe the majority of our charge-offs and loss provisioning with respect to these assets is behind us” remarked Patrick J. Rusnak, Chief Executive Officer. “We are faced with a capital deficit that we continue to address by seeking private equity investment. We have had substantive discussions with a series of qualified parties and we expect that if the capital markets improve we will ultimately be successful in our recapitalization efforts.”

AWBC – 2009 Q1 Earnings

April 30, 2009

Page 2 of 12

Capital:

AmericanWest Bank’s regulatory capital ratios as of March 31, 2009 exceeded the threshold for “adequately capitalized” status in two of the three measures, with the total risk-based capital ratio falling in the “under capitalized” range. All three of the Company’s consolidated regulatory capital ratios as of March 31, 2009 were in the “under capitalized” classification.

At March 31, 2009, total shareholders’ equity was $75 million and total tangible shareholders’ equity was $44 million, or $2.54 per share. The Company’s tangible equity ratio was 2.44% as of March 31, 2009.

During November 2008, the Company submitted an application for approval to issue $57 million of preferred stock to the United States Department of the Treasury (Treasury) under the Troubled Asset Relief Program’s Capital Purchase Program (TARP-CPP). This application reflected the Company’s commitment to secure a significant private equity investment coincident with receipt of any capital infusion from the Treasury under TARP-CPP. On April 28, 2009, the Company submitted a letter to the FDIC, which serves as the primary regulator for AmericanWest Bank, indicating its intention to withdraw its TARP-CPP application. The decision to withdraw the application was based upon a number of factors, including the expectation that the required private equity co-investment will not be consummated prior to the deadline for the processing of final TARP-CPP investments. “As we have previously indicated, our plan to restore AmericanWest to well capitalized status was not contingent upon TARP capital. We are continuing efforts to improve regulatory capital ratios through both new private equity investments and reducing the balance sheet size through divestitures,” Rusnak commented.

The Company and its financial advisor, Sandler O’Neill & Partners, LP, continued efforts with respect to identification of and discussions with a variety of potential private equity investors over the past six months. A group of prospective investors have provided the Company with a non-binding proposal, which originally contemplated a matching TARP CPP investment. This proposal was deemed by the Company’s Board of Directors to be acceptable, and the prospective investors substantially completed their on-site due diligence. The Company and its financial advisor have informed the prospective investors of the decision to withdraw the TARP CPP application and are continuing discussions regarding alternative approaches to securing a mutually acceptable recapitalization agreement. “The fact that the private equity markets for banks have been virtually closed since last summer has been a significant impediment to our capital raising efforts,” commented Rusnak. “However, the underlying strengths of our franchise, such as the core deposit base, loyal customers and dedicated staff, combined with our aggressive efforts over the past year in dealing with issues we can control, like the recognition of loan losses and expense control, should position us to benefit with the eventual improvement in the capital markets environment.” Although the Company has the existing authority under its Articles of Incorporation to issue preferred shares, it is likely that shareholder approval will be required for any private equity investment in common stock in accordance with NASDAQ rules.

As previously announced, the Company initiated efforts to divest certain assets during the third quarter of 2008 through the marketing of selected branches, loans and deposits. The Company has received letters of intent from more than one party at terms that are acceptable to the Board of Directors. These transactions, if approved by the regulatory authorities and consummated at a premium, would have a positive impact on the capital ratios of the Bank as additional capital would be generated and risk assets would be reduced.

AWBC – 2009 Q1 Earnings

April 30, 2009

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Net Interest Margin:

The tax-equivalent net interest margin for the first quarter of 2009 was 3.34%, as compared to 3.39% in the fourth quarter of 2008 and 4.62% for the first quarter of 2008. The 5 basis point decrease from the prior quarter is primarily due to a decline in the yield on earning assets of 31 basis points, offset in part by a reduction in the cost of funds of 40 basis points.

The average yield on loans for the first quarter of 2009 was 5.64%, a decrease of 35 basis points from the prior quarter and 177 basis points from the first quarter of 2008. The loan yield for the first quarter of 2009 was reduced by 65 basis points due to the total impact of non-accrual loans, including both reversed and forgone interest, as compared to a 51 basis point reduction for the fourth quarter of 2008. Non–accrual loans at March 31, 2009 were $122 million, an increase of $31 million from year end 2008. The average prime rate (the base index for approximately 39% of the Company’s loan portfolio) for the first quarter of 2009 was 3.25% as compared to 4.06% for the fourth quarter of 2008 and 6.24% for the first quarter of 2008.

The Company has benefited from the decline in prevailing market interest rates over the past year to historic lows. The average cost of interest bearing deposits for the first quarter of 2009 was 2.51%, a decrease of 30 basis points from the fourth quarter of 2008 and a decrease of 50 basis points from the first quarter of 2008. The cost of borrowed funds, including FHLB advances and subordinated debt, was 3.19% for the first quarter of 2009, a decrease of 117 basis points from the fourth quarter of 2008, and a decrease of 162 basis points from the first quarter of 2008. The average cost of interest bearing liabilities for the first quarter of 2009 was 2.61%, as compared to 3.01% in the fourth quarter of 2008 and 3.35% in the first quarter of 2008. The Company’s cost of funds inclusive of non interest bearing liabilities was 2.17% for the first quarter of 2009, as compared to 2.49% at December 31, 2008, and 2.74% for the same period of 2008.

Loans:

Total outstanding loans as of March 31, 2009 were $1.6 billion, reflecting a net decrease of $62 million during the quarter and a decrease of $193 million from the first quarter of the prior year. The linked-quarter reduction was principally driven by a $12 million decline in commercial and industrial loans and a $46 million decrease in construction and development loans. These reductions were inclusive of $18 million in charge-offs during the quarter. Total average loans outstanding for the first quarter of 2009 were $1.61 billion, a decrease of $67 million from the prior quarter, and a decrease of $165 million from the same period of the prior year.

Asset Quality:

Total non-performing assets, net of government guarantees on loans, were 7.96% of total assets at March 31, 2009, as compared to 5.74% of total assets at December 31, 2008 and 2.30% at March 31, 2008. Non-performing loans, net of government guaranteed amounts, represented 7.86% of total loans at March 31, 2009 as compared to 5.65% of total loans at December 31, 2008, and 2.67% at March 31, 2008.

Foreclosed assets at March 31, 2009 totaled $23 million and consisted of 36 properties, as compared to $16 million (22 properties) as of December 31, 2008. The value of the largest property being carried at March 31, 2009 is $6 million and is related to a residential condominium complex. During the first quarter of 2009, 11 foreclosed properties with an aggregate net carrying value of $5 million were sold, resulting in a pre-tax loss of $66 thousand. In addition, during the first quarter, $126 thousand of impairment charges recognized on foreclosed real estate.

AWBC – 2009 Q1 Earnings

April 30, 2009

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At March 31, 2009, the Company had approximately $75 million of loans which were not classified as non-performing but were internally identified as potential problem loans due to management’s concerns about the borrower’s financial condition. This represented approximately 4.8% of total outstanding loans. At December 31, 2008, potential problem loans represented 5.4% of total outstanding loans.

The Company recognized a provision for loan losses of $13.7 million or 3.44% of average loans on an annualized basis, for the quarter ended March 31, 2009, as compared to $40.3 million, or 9.54% of average loans on an annualized basis, for the quarter ended December 31, 2008. For the quarter ended March 31, 2008, the Company recognized a provision for loan losses of $12.8 million or 2.89% of average loans on an annualized basis. For the quarter ended March 31, 2009, net charge-offs were $17.7 million, or 4.45% of average loans annualized, as compared to $32.2 million, or 7.61% of average loans annualized for the fourth quarter of 2008 and $11.0 million, or 2.48%, for the first quarter of 2008.

While there are personal guarantees on nearly all loans, the prospect for material financial recoveries through legal action is limited. The Company’s valuation approach continues to be based on the presumption that the only source of repayment will be collateral liquidation. Management continues to be focused on the timely liquidation of collateral at fair current market valuations, and has a number of foreclosed properties have been sold or have bona fide offers pending.

It is the Company’s policy to recognize as charge-offs any specific loan impairments in lieu of carrying such amounts as a loan specific component of the allowance for credit losses. The allowance for credit losses, which is comprised of the allowance for loan losses and reserve for unfunded commitments, was $41 million, or 3%, of total loans at March 31, 2009, a decrease of 14 basis points from December 31, 2008 and an increase of 103 basis points over March 31, 2008. The allowance for credit losses represented 34% of total non-performing loans (net of government guarantees) as of March 31, 2009, as compared to 49% at December 31, 2008 and 61% as of March 31, 2008.

Deposits and Liquidity:

Total average interest bearing deposits for the first quarter of 2009 were $1.2 billion, a decrease of $50 million, or 4%, from the prior quarter and an increase of $13 million, or 1%, as compared to the first quarter of 2008. Total average non-interest bearing demand deposits for the first quarter of 2009 were $296 million, a reduction of $13 million, or 4%, during the quarter and down $32 million, or 10%, as compared to the first quarter of 2008. Total average savings and money market balances declined $14 million, or 3%, during the quarter and $120 million, or 22%, over the last 12 months. The average balance of certificates of deposit decreased $37 million, or 5%, during the first quarter of 2009 and were up $140 million, or 27%, as compared to the first quarter of 2008.

Total deposits as of March 31, 2009 were $1.5 billion, a decrease of $36 million, or 2%, from the prior quarter end and down $44 million, or 3%, from the same period in 2008. Total brokered certificates of deposit at March 31, 2009 were $28 million, a reduction of $25 million over the prior quarter and $106 million from March 31, 2008. The reduction in brokered certificates of deposit was principally replaced with retail certificates of deposit with maturities ranging from five months to one year. The Company expects to continue replacing maturing brokered certificates with retail certificates and cash flows obtained through reductions in outstanding loans.

AWBC – 2009 Q1 Earnings

April 30, 2009

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The reduction in loans and the continued stability of the deposit base has lowered the Company’s reliance on borrowings to fund its liquidity needs over the past year. Total FHLB and other borrowings at March 31, 2009 were $144 million, essentially unchanged from year end 2008 and down $68 million from March 31, 2008.

As of March 31, 2009, AmericanWest Bank had total available secured borrowing capacity of approximately $201 million through facilities at the FHLB and the Federal Reserve Bank of San Francisco (Fed) Discount Window program. As of March 31, 2009, AmericanWest Bank had no borrowings at the Fed Discount Window.

Non-interest Income:

Non-interest income was $5.8 million for the quarter ended March 31, 2009 as compared to $4.1 million for preceding quarter and $4.2 million for the same period of the prior year. The fees on mortgage loan sales increased $1.3 million, or 192%, from the preceding quarter and $1.1 million, or 123%, as compared to the first quarter of 2008. This substantial increase in mortgage activity was largely driven by the Federal Reserve Bank’s aggressive monetary policy in an effort to drive down mortgage rates and stimulate consumer borrowing as well as additional internal efforts to market these services to the Bank’s customer base. Fees and service charges on deposits decreased $363 thousand as compared to the fourth quarter related mainly to declines in overdraft fees of $271 thousand and declines of $122 thousand related to debit card fees. Other non-interest income increased $825 thousand, or 98%, for the quarter primarily as a result of a one-time tax refund from the state of Washington.

Non-interest Expense:

Non-interest expense for the three months ended March 31, 2009 was $20.6 million as compared to $27.3 million for the quarter ended December 31, 2008 and $18.8 million (excluding a goodwill impairment charge of $27 million) in the first quarter of 2008. The Company continues to pursue various cost savings initiatives. While non-interest expense was down from the previous quarter, the decrease of $6.7 million, or 25%, was principally due to a decrease in foreclosed real estate costs of $2.9 million, a decrease in salaries and employee benefits of $1.6 million, and a decrease in impairment of premises and securities of $1.1 million.

The efficiency ratio for the quarter ended March 31, 2008 was 101% as compared to 138% in the prior quarter and 70%, excluding the goodwill impairment charge, for the quarter ended March 31, 2008.

Income Taxes:

As a result of the Company’s current going concern status as of December 31, 2008, all tax benefits from operating losses in 2009 have been deferred and all deferred taxes have been fully reserved. The Company has not shown any tax benefit for operating losses in the first quarter. If the Company is successful in raising additional capital and future operating profitability is probable, it is likely the going concern status will be rescinded and the valuation reserve for deferred tax asset reversed, significantly enhancing the regulatory capital ratios of both the Bank and the Company.

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 58 financial centers located in Washington, Northern Idaho and Utah. For further information on the Company, please visit our web site at www.awbank.net/IR.

AWBC – 2009 Q1 Earnings

April 30, 2009

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The press release contains certain non-GAAP measures related to eliminating the effects of goodwill impairment on certain amounts and ratios presented herein. Management believes these measures are meaningful as they provide a comparable basis to other periods presented.

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 Company’s ability to improve its regulatory capital ratios through the issuance of new capital or divestiture of assets, and the Company’s projected provision for loan losses and charge-offs. 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.

AWBC – 2009 Q1 Earnings

April 30, 2009

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AmericanWest Bancorporation

Selected Consolidated Financial Highlights

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

	For the three months ended:
	3/31/2009			12/31/2008			3/31/2008
Consolidated Statements of Loss:
INTEREST INCOME
Interest and fees on loans	$	22,464		$	25,311		$	32,784
Interest on securities		752			778			827
Other interest income		35			114			59
TOTAL INTEREST INCOME		23,251			26,203			33,670
INTEREST EXPENSE
Interest on deposits		7,557			8,973			9,052
Interest on borrowings		1,757			2,108			3,331
TOTAL INTEREST EXPENSE		9,314			11,081			12,383
NET INTEREST INCOME		13,937			15,122			21,287
Loan loss provision		13,680			40,320			12,800
NET INTEREST INCOME/(LOSS) AFTER LOAN LOSS PROVISION		257			(25,198	)		8,487
NON-INTEREST INCOME
Fees and service charges on deposits		2,208			2,571			2,553
Fees on mortgage loan sales, net		1,924			660			862
Other		1,668			843			805
TOTAL NON-INTEREST INCOME		5,800			4,074			4,220
NON-INTEREST EXPENSE
Salaries and employee benefits		8,893			10,494			10,786
FDIC assessment		3,475			2,035			52
Equipment expense		1,992			2,033			1,845
Occupancy expense, net		1,954			1,920			1,855
Amortization of intangible assets		716			863			885
Foreclosed real estate and other foreclosed assets expense		287			3,167			63
Impairment of premises and securities		59			1,185			—
State business and occupation tax		20			262			288
Impairment of goodwill		—			—			27,000
Other		3,196			5,346			3,009
TOTAL NON-INTEREST EXPENSE		20,592			27,305			45,783
LOSS BEFORE PROVISION FOR INCOME TAX		(14,535	)		(48,429	)		(33,076	)
BENEFIT (EXPENSE) FOR INCOME TAX		—			9,267			(1,519	)
NET LOSS	$	(14,535	)	$	(57,696	)	$	(31,557	)
Basic loss per common share	$	(0.84	)	$	(3.35	)	$	(1.83	)
Diluted loss per common share	$	(0.84	)	$	(3.35	)	$	(1.83	)
Basic weighted average shares outstanding		17,213			17,213			17,206
Diluted weighted average shares outstanding		17,213			17,213			17,206
Ending book value per share	$	4.38		$	5.22		$	14.58
Ending tangible book value per share	$	2.54		$	3.34		$	7.78
Ending shares outstanding		17,213			17,213			17,209

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April 30, 2009

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AmericanWest Bancorporation

Selected Consolidated Financial Highlights

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

	3/31/2009			12/31/2008			3/31/2008
Consolidated Statement of Condition:
ASSETS
Cash and due from banks	$	55,129		$	40,927		$	50,483
Overnight interest bearing deposits with other banks		14,430			26,058			239
Cash and cash equivalents		69,559			66,985			50,722
Securities, available-for-sale at fair value		60,360			65,270			77,673
Loans, net of allowance for loan losses		1,519,507			1,577,106			1,725,615
Loans, held for sale		16,986			12,265			21,147
Accrued interest receivable		7,620			8,193			10,522
FHLB stock		10,267			8,286			10,147
Premises and equipment, net		39,921			41,385			48,489
Foreclosed real estate and other foreclosed assets		22,552			15,781			1,645
Bank owned life insurance		30,443			30,193			29,381
Goodwill		18,852			18,852			100,852
Intangible assets		12,751			13,467			16,057
Other assets		17,279			16,840			15,927
TOTAL ASSETS	$	1,826,097		$	1,874,623		$	2,108,177
LIABILITIES
Non-interest bearing demand deposits	$	288,248		$	321,552		$	339,363
Interest bearing deposits:
NOW, savings accounts and MMDA		574,229			559,666			701,120
Time, $100,000 and over		281,999			342,022			326,353
Other time		393,545			350,293			215,169
TOTAL DEPOSITS		1,538,021			1,573,533			1,582,005
FHLB advances		140,680			139,668			179,589
Other borrowings		3,130			3,294			32,439
Junior subordinated debt		41,239			41,239			41,239
Accrued interest payable		7,806			7,677			5,686
Other liabilities		19,836			19,424			16,379
TOTAL LIABILITIES		1,750,712			1,784,835			1,857,337
STOCKHOLDERS’ EQUITY
Preferred stock, no par	$	—		$	—		$	—
Common stock, no par		253,399			253,450			253,319
Retained loss		(178,299	)		(163,764	)		(2,961	)
Accumulated other comprehensive income, net of tax		285			102			482
TOTAL STOCKHOLDERS’ EQUITY		75,385			89,788			250,840
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,826,097		$	1,874,623		$	2,108,177

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AmericanWest Bancorporation

Selected Consolidated Financial Highlights

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

	Three Months Ended
	3/31/2009		12/31/2008		GAAP 3/31/2008		Non-GAAP (1) 3/31/2008
Financial Ratios, annualized:
Return on average assets	-3.18	%	-11.82	%	-5.98	%	-0.86	%
Return on average equity	-66.70	%	-160.22	%	-44.58	%	-6.44	%
Return on tangible average equity	-104.51	%	-207.73	%	-90.25	%	-13.03	%
Efficiency ratio	100.70	%	137.75	%	176.02	%	70.17	%
Non-interest income to average assets	1.27	%	0.83	%	0.80	%	0.80	%
Non-interest expenses to average assets	4.50	%	5.59	%	8.68	%	3.56	%
Net interest margin to average earning assets (2)	3.34	%	3.39	%	4.62	%	4.62	%

(1) Excludes goodwill impairment.

(2) 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)

	3/31/2009			12/31/2008			3/31/2008
Loan Portfolio:
Commercial real estate	$	634,718		$	630,540		$	579,443
Construction, land development and other land		342,564			388,381			525,547
Commercial and industrial		203,401			215,776			316,456
Residential real estate		202,312			200,047			149,150
Agricultural		150,479			160,944			139,791
Installment and other		28,922			28,777			45,485
Total loans		1,562,396			1,624,465			1,755,872
Allowance for loan losses		(40,675	)		(44,722	)		(27,089	)
Deferred loan fees, net of deferred costs		(2,214	)		(2,637	)		(3,168	)
Net loans	$	1,519,507		$	1,577,106		$	1,725,615
Non-performing Assets:
Accruing loans over 90 days past due (1)	$	285		$	0		$	3,578
Nonaccrual loans (1)		122,442			91,744			43,269
Total non-performing loans	$	122,727		$	91,744		$	46,847
Foreclosed real estate and other foreclosed assets		22,552			15,781			1,645
Total non-performing assets	$	145,279		$	107,525		$	48,492
Allowance for Credit Losses:
Allowance for loan losses	$	40,675		$	44,722		$	27,089
Reserve for unfunded commitments		660			660			1,272
Allowance for credit losses	$	41,335		$	45,382		$	28,361
Credit Quality Ratios:
Non-performing loans to total gross loans (1)		7.86	%		5.65	%		2.67	%
Non-performing assets to total assets (1)		7.96	%		5.74	%		2.30	%
Allowance for loan loss to total gross loans		2.60	%		2.75	%		1.54	%
Allowance for credit losses to total gross loans		2.65	%		2.79	%		1.62	%
Allowance for credit losses to non-performing loans (1)		33.68	%		49.47	%		60.54	%

(1) Amounts and ratios shown net of government guarantees on non-performing loans of $1.4 million, $1.6 million, and $1.2 million, respectively.

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AmericanWest Bancorporation

Selected Consolidated Financial Highlights

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

	Three Months Ended
	3/31/2009			12/31/2008			3/31/2008
Allowance for Loan Losses:
Balance, beginning of period	$	44,722		$	36,573		$	25,258
Loan loss provision		13,680			40,320			12,800
Loans charged-off		(17,943	)		(32,235	)		(11,088	)
Recoveries		216			64			119
Balance, end of period	$	40,675		$	44,722		$	27,089
Reserve for Unfunded Commitments:
Balance, beginning of period	$	660		$	968		$	1,374
Provision for unfunded commitments		—			(308	)		(102	)
Balance, end of period	$	660		$	660		$	1,272
Net charge-offs to average gross loans (1)		4.45	%		7.61	%		2.48	%
Provision for loan losses to average gross loans (1)		3.44	%		9.54	%		2.89	%

(1) Ratios are annualized.

-more-

AWBC – 2009 Q1 Earnings

April 30, 2009

Page 12 of 12

AmericanWest Bancorporation

Selected Consolidated Financial Highlights

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

	Three Months Ended
	March 31, 2009						December 31, 2008						March 31, 2008
($ in thousands)	Average Balance		Interest		%		Average Balance		Interest		%		Average Balance		Interest		%
Quarter to Date Net Interest Margin:
Assets
Loans (1)	$	1,614,190	$	22,464	5.64	%	$	1,681,407	$	25,311	5.99	%	$	1,778,977	$	32,784	7.41	%
Taxable securities		45,589		560	4.98	%		46,348		584	5.01	%		51,844		647	5.02	%
Non-taxable securities (2)		19,106		291	6.18	%		19,631		293	5.94	%		17,918		273	6.13	%
FHLB Stock		9,586		—	0.00	%		8,642		—	0.00	%		9,689		20	0.83	%
Overnight deposits with other banks and other		18,200		35	0.78	%		30,373		114	1.49	%		2,688		39	5.84	%
Total interest earning assets		1,706,671		23,350	5.55	%		1,786,401		26,302	5.86	%		1,861,116		33,763	7.30	%
Non-interest earning assets		147,616						156,112						260,208
Total assets	$	1,854,287					$	1,942,513					$	2,121,324
Liabilities
Interest bearing demand deposits	$	131,007	$	132	0.41	%	$	129,775	$	165	0.51	%	$	138,319	$	189	0.55	%
Savings and MMDA deposits		426,313		1,768	1.68	%		440,645		2,110	1.90	%		546,262		2,953	2.17	%
Time deposits		664,369		5,658	3.45	%		701,265		6,698	3.80	%		523,962		5,910	4.54	%
Total interest bearing deposits		1,221,689		7,557	2.51	%		1,271,685		8,973	2.81	%		1,208,543		9,052	3.01	%
Overnight borrowings		94,242		214	0.92	%		12,393		43	1.38	%		85,425		822	3.87	%
Junior subordinated debt		41,239		641	6.30	%		41,239		701	6.76	%		41,239		736	7.18	%
Other borrowings		87,721		902	4.17	%		138,622		1,364	3.91	%		151,672		1,773	4.70	%
Total interest bearing liabilities		1,444,891		9,314	2.61	%		1,463,939		11,081	3.01	%		1,486,879		12,383	3.35	%
Non-interest bearing demand deposits		295,854						309,047						327,931
Other non-interest bearing liabilities		25,168						26,266						21,821
Total liabilities		1,765,913						1,799,252						1,836,631
Stockholders’ Equity		88,374						143,261						284,693
Total liabilities and stockholders’ equity	$	1,854,287					$	1,942,513					$	2,121,324
Net interest income and spread			$	14,036	2.94	%			$	15,221	2.85	%			$	21,380	3.95	%
Net interest margin to average earning assets					3.34	%					3.39	%					4.62	%

(1) Includes loans held for sale and non-performing loans in average loans. Interest income includes loan fee income.

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

Contacts:

AmericanWest Bancorporation

Patrick J. Rusnak

President and CEO

509.232.1963

prusnak@awbank.net

or

Kelly McPhee

Communications Manager

509.232.1968

kmcphee@awbank.net

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