Exhibit 99.1
AWBC – 2007 Q2 Earnings
July 26, 2007
Page 1 of 13
AMERICANWEST BANCORPORATION
NEWS RELEASE
AMERICANWEST BANCORPORATION ANNOUNCES
2007 SECOND QUARTER FINANCIAL RESULTS
SPOKANE, WASHINGTON – (Business Wire) - AmericanWest Bancorporation (NASDAQ: AWBC) today announced its second quarter 2007 financial results, which included the following highlights:
| | • | | 37% increase in diluted earnings per share over the first quarter of 2007 and 8% over the same period in 2006 |
| | • | | Return on average assets of 0.92%, an improvement of 29 basis points over the first quarter of 2007 and 10 basis points over the same period in 2006 |
| | • | | Net interest margin (tax-equivalent) of 5.37%, an increase of 68 basis points over the prior quarter |
| | • | | Organic loan growth of $51 million, representing annualized growth of 16% |
| | • | | Period-end non-performing assets of $23.9 million, or 1.19% of total assets |
| | • | | Net charge-offs (annualized) of 46 basis points of average loans for the second quarter and 33 basis points for the six months ended June 30, 2007 |
Net income for the quarter ended June 30, 2007 was $4.5 million, or $0.26 per diluted share, as compared with $2.8 million, or $0.24 per diluted share, for the second quarter of 2006. The financial results for the second quarter of 2007 reflect AmericanWest Bancorporation’s acquisition of Far West Bancorporation and its wholly-owned operating subsidiary Far West Bank, which was completed effective April 1, 2007.
“Our improved financial performance for the second quarter reflects the expected impact of the Far West Bank merger and our previously announced expense reduction initiatives,” remarked Robert M. Daugherty, President and Chief Executive Officer. “We are well positioned to achieve continued improvement in operating performance for the remainder of 2007.”
Net Interest Margin:
The tax-equivalent net interest margin for the second quarter of 2007 was 5.37%, an increase of 68 basis points from the prior quarter and of 30 basis points from the same period in 2006.
The average yield on loans for the second quarter of 2007 was 8.49%, an increase of 47 basis points over the first quarter of 2007 and 48 basis points from the same period in 2006. The increase in the average yield on loans is principally due to the Far West Bank portfolio acquired, which was partially offset by a change in the accounting for deferred loan fees and origination costs implemented during the first quarter of 2007.
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July 26, 2007
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The Company’s net interest margin was also positively impacted by a reduction in the average cost of deposits of 35 basis points from the prior quarter. This was principally the result of the favorable deposit mix change related mainly to the Far West Bank deposits acquired. Non-interest bearing demand deposits represented 23% of total average deposits for the second quarter of 2007, up from 19% for the first quarter. The average cost of interest bearing deposits for the second quarter of 2007 was 3.53%, down 27 basis points from the prior quarter and up 37 basis points from the same quarter in 2006. The increase from the similar quarter of the prior year is attributed to higher rates paid on money market and time deposit accounts due to heightened market competition.
Loan Growth and Asset Quality:
Organic loan growth, which excludes the impact of loans acquired through mergers, was 16% on an annualized basis for the second quarter of 2007. Approximately $30 million, or 58%, of the second quarter organic loan growth was generated by the Company’s loan production offices located in South Jordan and Salt Lake City, Utah. Growth in the agricultural portfolio contributed approximately $18 million.
Total non-performing assets, net of government guarantees on loans, were 1.19% of total assets at June 30, 2007, as compared to 0.47% of total assets at March 31, 2007 and 1.05% of total assets at June 30, 2006. The increase over the prior quarter was principally due to placement of loans totaling $10.5 million related to a wood products manufacturing company on non-accrual status and the Far West Bank acquisition, which contributed $4.6 million to the non-performing loan total. Based on current collateral valuations and the establishment of specific reserves, management does not expect to record any additional provision for credit losses in connection with the workout of the wood products manufacturing loans. Total foreclosed assets at June 30, 2007 had a carrying value of $213,000 and were comprised of two properties, both of which are expected to be sold without any significant loss by the end of 2007. During the second quarter of 2007, the Company recognized a gain of $55,000 on the sale of a foreclosed property.
The Company recognized a provision for credit losses of $1.8 million, or 0.43% of average loans on an annualized basis, for the quarter ended June 30, 2007 as compared to $704,000, or 0.24% of average loans, for the quarter ended June 30, 2006. For the quarter ended June 30, 2007, annualized net charge-offs as a percentage of average loans were 0.46% as compared to 0.26% in the same quarter of the prior year. Included in net charge-offs for the second quarter of 2007 was $1.5 million related to the wood products manufacturing loan relationship described above. For the six month period ended June 30, 2007, the annualized provision for loan losses and net charge-offs represented 0.25% and 0.33% of total loans, respectively.
The allowance for credit losses, which is comprised of the allowance for loan losses and reserve for unfunded commitments, was $23.2 million, or 1.41% of total loans, at June 30, 2007 as compared to $15.6 million, or 1.25% of total loans, at March 31, 2007. The increase in the allowance for credit losses was principally due to the addition of approximately $7.8 million acquired in connection with the Far West Bank merger, which represented 2.22% of the acquired loans. The allowance for credit losses represented 98% of total non-performing loans (net of government guarantees) as of June 30, 2007.
Deposits and Borrowed Funds:
Total deposits as of June 30, 2007 were $1.5 billion, an increase of $343 million from March 31, 2007. On an organic basis, total deposits increased by 6% over the prior year, with growth in the interest-bearing transaction
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July 26, 2007
Page 3 of 13
and money market account category (11%) and certificates of deposit (7%) offset by a decline in demand deposits (7%). On an organic basis, total deposits declined by approximately $40 million during the second quarter of 2007. This decline was principally due to reductions in public entity certificate of deposits of $37 million, and non-interest bearing demand deposits of $11 million offset by an increase in short-term brokered certificates of deposit of $25 million.
Total FHLB borrowings at June 30, 2007 were $157 million, an increase of $84 million over March 31, 2007 and $29 million over June 30, 2006. The increased level of FHLB borrowing for both periods provided funding for loan growth in excess of deposit growth.
Non-interest Income and Expense:
Non-interest income was $4.7 million for the quarter ended June 30, 2007 as compared to $2.2 million for the same period in 2006. This increase is due principally to growth in deposit service charges of $1.1 million, or 80%, increased mortgage banking revenue of $599,000, or 148%, and an increase in bank-owned life insurance revenue of $154,000. Deposit accounts acquired in the Far West Bank merger contributed $923,000, or 37%, of the second quarter 2007 deposit service charge income. The growth of mortgage banking revenue is attributed to increased originations due to additions to the lending staff in Washington and Idaho during the first quarter of 2007 and increased production resulting from the Far West Bank merger. The increase in the bank-owned life insurance income is mainly a result of insurance policies acquired through the merger. Included in non-interest income for the second quarter of 2007 were net gains of $129,000 related to the sale of two financial center facilities, attributed to a gain of $319,000 on the sale of an occupied financial center which is being relocated to a new leased facility, partially offset by a write-down on another vacant building of $190,000. The vacant property is under a contract for sale that is expected to close during the third quarter of 2007 and no additional gain or loss is expected.
Non-interest expense was $19.0 million for the quarter ended June 30, 2007 as compared to $12.7 million for same period in 2006 and $13.8 million for the first quarter of 2007. The increase is related mainly to salaries and employee benefits expense which increased $4.0 million, or 55%, from the same period in 2006 and $3.0 million, or 36%, over the previous quarter. The majority of this increase is related to growth in full-time equivalent employees from the Far West Bank merger and staff additions related to residential mortgage lending, four new financial centers and the two Utah loan production offices opened since late 2006.
The Company recorded a core deposit intangible asset of $12.9 million in connection with Far West Bank acquisition which is being amortized on an accelerated basis. The related amortization expense recognized during the second quarter of 2007 was $793,000. Also included in non-interest expenses are costs associated with mergers that do not qualify for capitalization. Total merger-related expenses recognized during the second quarter of 2007 were $263,000, or $0.02 per diluted share on an after-tax basis, as compared to $102,000 for the first quarter of 2007 and $233,000 for the same period in 2006.
The efficiency ratio has improved significantly to 64.7% for the quarter ended June 30, 2007, as compared to 78.6% in the prior quarter and 70.0% for the same period in 2006.
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July 26, 2007
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Income Taxes:
The effective tax rate for the quarter ended June 30, 2007 was 34.9%, as compared to 35.2% for the first quarter of 2007 and 35.9% for the second quarter of 2006. The decrease in the effective tax rate is principally related to the recapture of certain tax credits during 2006.
Earnings Conference Call:
The second quarter earnings conference call will be held Thursday, July 26, 2007 at 10:00 a.m. PDT (1:00 p.m. EDT). Management will discuss the second quarter 2007 operating results and provide an update on recent initiatives. Shareholders, analysts and other interested parties are invited to join the call. The telephone access number is (877) 407-0782 and the pass code is “AWBC.”
About AmericanWest Bancorporation:
AmericanWest Bancorporation is a bank holding company whose principal subsidiary is AmericanWest Bank, which includes Far West Bank, operating as an integrated division of AmericanWest Bank. AmericanWest Bank is a community bank with 62 financial centers and three loan production offices located in Washington, Northern Idaho and Utah. For further information on the Company, please visit our web site atwww.awbank.net/IR.
This press release includes forward-looking statements, and AmericanWest Bancorporation intends for such statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements describe AmericanWest Bancorporation’s expectations regarding future events, including the improvements in operating performance, the successful workout of certain non-performing loans and the sale of foreclosed and other bank owned property at current carrying values. Future events are difficult to predict and are subject to risk and uncertainty which could cause actual results to differ materially and adversely. Additional information regarding risks and uncertainties is included in AmericanWest Bancorporation’s periodic filings on Forms 10-K and 10-Q with the Securities and Exchange Commission. AmericanWest Bancorporation undertakes no obligation to revise or amend any forward-looking statements to reflect subsequent events or circumstances.
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July 26, 2007
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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: |
| | | 6/30/2007 | | 3/31/2007 | | 6/30/2006 |
INTEREST INCOME | | | | | | | | | |
Interest and fees on loans | | $ | 34,825 | | $ | 24,329 | | $ | 23,535 |
Interest on securities | | | 844 | | | 462 | | | 458 |
Other interest income | | | 85 | | | 71 | | | 28 |
| | | | | | | | | |
TOTAL INTEREST INCOME | | | 35,754 | | | 24,862 | | | 24,021 |
| | | | | | | | | |
INTEREST EXPENSE | | | | | | | | | |
Interest on deposits | | | 10,234 | | | 8,520 | | | 6,551 |
Interest on borrowings | | | 2,519 | | | 1,608 | | | 1,957 |
| | | | | | | | | |
TOTAL INTEREST EXPENSE | | | 12,753 | | | 10,128 | | | 8,508 |
| | | | | | | | | |
NET INTEREST INCOME | | | 23,001 | | | 14,734 | | | 15,513 |
Provision for credit losses | | | 1,750 | | | — | | | 704 |
| | | | | | | | | |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | | | 21,251 | | | 14,734 | | | 14,809 |
| | | | | | | | | |
NON-INTEREST INCOME | | | | | | | | | |
Fees and service charges on deposits | | | 2,498 | | | 1,390 | | | 1,388 |
Fees on mortgage loan sales | | | 1,004 | | | 342 | | | 405 |
Other | | | 1,185 | | | 673 | | | 397 |
| | | | | | | | | |
TOTAL NON-INTEREST INCOME | | | 4,687 | | | 2,405 | | | 2,190 |
| | | | | | | | | |
NON-INTEREST EXPENSE | | | | | | | | | |
Salaries and employee benefits | | | 11,409 | | | 8,418 | | | 7,376 |
Equipment expense | | | 1,773 | | | 1,261 | | | 953 |
Occupancy expense, net | | | 1,388 | | | 1,227 | | | 1,018 |
Amortization of intangible assets | | | 1,063 | | | 291 | | | 294 |
State business and occupation tax | | | 323 | | | 304 | | | 312 |
Foreclosed real estate and other foreclosed assets expense | | | 74 | | | 48 | | | 81 |
Other | | | 2,934 | | | 2,218 | | | 2,650 |
| | | | | | | | | |
TOTAL NON-INTEREST EXPENSE | | | 18,964 | | | 13,767 | | | 12,684 |
| | | | | | | | | |
INCOME BEFORE PROVISION FOR INCOME TAX | | | 6,974 | | | 3,372 | | | 4,315 |
| | | |
PROVISION FOR INCOME TAX | | | 2,433 | | | 1,187 | | | 1,547 |
| | | | | | | | | |
NET INCOME | | $ | 4,541 | | $ | 2,185 | | $ | 2,768 |
| | | | | | | | | |
Basic earnings per common share | | $ | 0.26 | | $ | 0.19 | | $ | 0.24 |
Diluted earnings per common share | | $ | 0.26 | | $ | 0.19 | | $ | 0.24 |
Basic weighted average shares outstanding | | | 17,177,214 | | | 11,412,991 | | | 11,317,386 |
Diluted weighted average shares outstanding | | | 17,290,389 | | | 11,540,998 | | | 11,511,564 |
| | | |
Ending book value per share | | $ | 16.46 | | $ | 13.54 | | $ | 13.09 |
Ending tangible book value per share | | $ | 7.84 | | $ | 10.02 | | $ | 9.46 |
Ending shares outstanding | | | 17,185,649 | | | 11,424,831 | | | 11,362,267 |
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July 26, 2007
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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 six months ended: |
| | | 6/30/2007 | | 6/30/2006 |
INTEREST INCOME | | | | | | |
Interest and fees on loans | | $ | 59,154 | | $ | 42,392 |
Interest on securities | | | 1,306 | | | 916 |
Other interest income | | | 156 | | | 79 |
| | | | | | |
TOTAL INTEREST INCOME | | | 60,616 | | | 43,387 |
| | | | | | |
INTEREST EXPENSE | | | | | | |
Interest on deposits | | | 18,754 | | | 11,587 |
Interest on borrowings | | | 4,127 | | | 3,064 |
| | | | | | |
TOTAL INTEREST EXPENSE | | | 22,881 | | | 14,651 |
| | | | | | |
NET INTEREST INCOME | | | 37,735 | | | 28,736 |
Provision for credit losses | | | 1,750 | | | 1,486 |
| | | | | | |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | | | 35,985 | | | 27,250 |
| | | | | | |
NON-INTEREST INCOME | | | | | | |
Fees and service charges on deposits | | | 3,888 | | | 2,554 |
Fees on mortgage loan sales | | | 1,346 | | | 685 |
Other | | | 1,858 | | | 707 |
| | | | | | |
TOTAL NON-INTEREST INCOME | | | 7,092 | | | 3,946 |
| | | | | | |
NON-INTEREST EXPENSE | | | | | | |
Salaries and employee benefits | | | 19,827 | | | 14,267 |
Equipment expense | | | 3,034 | | | 1,840 |
Occupancy expense, net | | | 2,615 | | | 1,942 |
Amortization of intangible assets | | | 1,354 | | | 394 |
State business and occupation tax | | | 627 | | | 566 |
Foreclosed real estate and other foreclosed assets expense | | | 122 | | | 507 |
Other | | | 5,152 | | | 4,836 |
| | | | | | |
TOTAL NON-INTEREST EXPENSE | | | 32,731 | | | 24,352 |
| | | | | | |
INCOME BEFORE PROVISION FOR INCOME TAX | | | 10,346 | | | 6,844 |
| | |
PROVISION FOR INCOME TAX | | | 3,620 | | | 2,427 |
| | | | | | |
NET INCOME | | $ | 6,726 | | $ | 4,417 |
| | | | | | |
Basic earnings per common share | | $ | 0.47 | | $ | 0.40 |
Diluted earnings per common share | | $ | 0.47 | | $ | 0.39 |
Basic weighted average shares outstanding | | | 14,311,026 | | | 11,038,376 |
Diluted weighted average shares outstanding | | | 14,431,576 | | | 11,229,382 |
| | |
Ending book value per share | | $ | 16.46 | | $ | 13.09 |
Ending tangible book value per share | | $ | 7.84 | | $ | 9.46 |
Ending shares outstanding | | | 17,185,649 | | | 11,362,267 |
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AmericanWest Bancorporation
Selected Consolidated Financial Highlights
($ in thousands, except per share data and ratios; unaudited)
Consolidated Statement of Condition:
| | | | | | | | | | | | | | |
| | | June 30,
2007 | | | March 31,
2007 | | December 31,
2006 | | June 30,
2006 | |
| ASSETS | | | | | | | | | | | | | | |
| | | | |
Cash and due from banks | | $ | 58,850 | | | $ | 64,973 | | $ | 45,866 | | $ | 41,467 | |
Overnight interest bearing deposits with other banks | | | 688 | | | | 481 | | | 9,863 | | | 885 | |
| | | | | | | | | | | | | | |
Cash and cash equivalents | | | 59,538 | | | | 65,454 | | | 55,729 | | | 42,352 | |
| | | | |
Securities, available-for-sale at fair value | | | 68,979 | | | | 40,156 | | | 39,518 | | | 44,783 | |
| | | | |
Loans, net of allowance for loan losses | | | 1,625,242 | | | | 1,231,731 | | | 1,204,519 | | | 1,175,454 | |
| | | | |
Loans, held for sale | | | 13,051 | | | | 6,904 | | | 2,913 | | | 5,439 | |
Accrued interest receivable | | | 11,816 | | | | 8,275 | | | 8,311 | | | 8,197 | |
FHLB stock | | | 7,801 | | | | 6,319 | | | 6,319 | | | 6,319 | |
Premises and equipment, net | | | 44,116 | | | | 30,985 | | | 30,484 | | | 26,574 | |
Foreclosed real estate and other foreclosed assets | | | 213 | | | | 1,013 | | | 644 | | | 876 | |
Bank owned life insurance | | | 28,550 | | | | 19,894 | | | 19,716 | | | 19,357 | |
Goodwill | | | 129,147 | | | | 33,073 | | | 33,073 | | | 33,136 | |
Intangible assets | | | 19,068 | | | | 7,215 | | | 7,506 | | | 8,094 | |
Other assets | | | 4,084 | | | | 7,627 | | | 7,796 | | | 6,293 | |
| | | | | | | | | | | | | | |
TOTAL ASSETS | | $ | 2,011,605 | | | $ | 1,458,646 | | $ | 1,416,528 | | $ | 1,376,874 | |
| | | | | | | | | | | | | | |
| | | | |
| LIABILITIES | | | | | | | | | | | | | | |
| | | | |
Non-interest bearing demand deposits | | $ | 348,763 | | | $ | 217,967 | | $ | 236,375 | | $ | 223,561 | |
Interest bearing deposits: | | | | | | | | | | | | | | |
NOW, savings accounts and MMDA | | | 659,246 | | | | 503,126 | | | 476,852 | | | 443,250 | |
Time, $100,000 and over | | | 270,270 | | | | 251,088 | | | 217,508 | | | 216,974 | |
Other time | | | 231,887 | | | | 194,967 | | | 193,204 | | | 181,840 | |
| | | | | | | | | | | | | | |
TOTAL DEPOSITS | | | 1,510,166 | | | | 1,167,148 | | | 1,123,939 | | | 1,065,625 | |
| | | | |
FHLB advances | | | 157,329 | | | | 73,543 | | | 105,759 | | | 128,041 | |
Other borrowings | | | 274 | | | | 8,247 | | | 307 | | | 3,441 | |
Junior subordinated debt | | | 41,239 | | | | 41,239 | | | 20,620 | | | 20,620 | |
Accrued interest payable | | | 5,049 | | | | 4,442 | | | 4,270 | | | 2,976 | |
Other liabilities | | | 14,680 | | | | 9,296 | | | 9,596 | | | 7,476 | |
| | | | | | | | | | | | | | |
TOTAL LIABILITIES | | | 1,728,737 | | | | 1,303,915 | | | 1,264,491 | | | 1,228,179 | |
| | | | |
| STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | | |
| | | | |
Common stock, no par | | | 252,951 | | | | 128,261 | | | 127,396 | | | 126,985 | |
Retained earnings | | | 30,273 | | | | 26,419 | | | 24,576 | | | 22,045 | |
Accumulated other comprehensive income (loss), net of tax | | | (356 | ) | | | 51 | | | 65 | | | (335 | ) |
| | | | | | | | | | | | | | |
TOTAL STOCKHOLDERS’ EQUITY | | | 282,868 | | | | 154,731 | | | 152,037 | | | 148,695 | |
| | | | | | | | | | | | | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | $ | 2,011,605 | | | $ | 1,458,646 | | $ | 1,416,528 | | $ | 1,376,874 | |
| | | | | | | | | | | | | | |
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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: | | 6/30/2007 | | | 3/31/2007 | | | 6/30/2006 | |
Return on average assets | | 0.92 | % | | 0.63 | % | | 0.82 | % |
Return on average equity | | 6.46 | % | | 5.75 | % | | 7.61 | % |
Return on tangible average equity | | 13.60 | % | | 7.80 | % | | 10.33 | % |
Efficiency ratio | | 64.65 | % | | 78.63 | % | | 69.99 | % |
Non-interest income to average assets | | 0.95 | % | | 0.70 | % | | 0.65 | % |
Non-interest expenses to average assets | | 3.83 | % | | 3.98 | % | | 3.76 | % |
Net interest margin to average earning assets (1) | | 5.37 | % | | 4.69 | % | | 5.07 | % |
Ending shareholders’ equity to assets | | 14.06 | % | | 10.61 | % | | 10.80 | % |
Ending tangible shareholders’ equity to tangible assets | | 7.23 | % | | 8.07 | % | | 8.05 | % |
| | |
| | | Six Months Ended | | | | |
Year to Date Financial Ratios, annualized: | | 6/30/2007 | | | 6/30/2006 | | |
Return on average assets | | 0.80 | % | | 0.72 | % | |
Return on average equity | | 6.20 | % | | 6.55 | % | |
Return on tangible average equity | | 10.82 | % | | 8.24 | % | |
Efficiency ratio | | 70.00 | % | | 73.31 | % | |
Non-interest income to average assets | | 0.84 | % | | 0.64 | % | |
Non-interest expenses to average assets | | 3.89 | % | | 3.95 | % | |
Net interest margin to average earning assets (1) | | 5.08 | % | | 5.09 | % | |
| (1) | Presented on a tax equivalent basis for tax exempt securities. |
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AmericanWest Bancorporation
Selected Consolidated Financial Highlights
($ in thousands, except per share data and ratios; unaudited)
| | | | | | | | | | | | | | | | |
| | | 6/30/2007 | | | 3/31/2007 | | | 12/31/2006 | | | 6/30/2006 | |
Loan Portfolio: | | | | | | | | | | | | | | | | |
Commercial real estate | | $ | 790,504 | | | $ | 676,442 | | | $ | 651,386 | | | $ | 604,337 | |
Commercial and industrial | | | 438,642 | | | | 298,888 | | | | 283,889 | | | | 297,855 | |
Agricultural | | | 146,461 | | | | 120,445 | | | | 141,646 | | | | 157,290 | |
Residential construction | | | 122,115 | | | | 51,472 | | | | 47,235 | | | | 35,548 | |
Residential mortgage | | | 99,522 | | | | 79,002 | | | | 74,222 | | | | 69,564 | |
Installment and other | | | 53,075 | | | | 21,913 | | | | 22,508 | | | | 25,559 | |
| | | | | | | | | | | | | | | | |
Total loans | | | 1,650,319 | | | | 1,248,162 | | | | 1,220,886 | | | | 1,190,153 | |
Allowance for loan losses | | | (21,830 | ) | | | (14,657 | ) | | | (15,136 | ) | | | (13,863 | ) |
Deferred loan fees, net of deferred costs | | | (3,247 | ) | | | (1,774 | ) | | | (1,231 | ) | | | (836 | ) |
| | | | | | | | | | | | | | | | |
Net loans | | $ | 1,625,242 | | | $ | 1,231,731 | | | $ | 1,204,519 | | | $ | 1,175,454 | |
| | | | | | | | | | | | | | | | |
Non-performing Assets: | | | | | | | | | | | | | | | | |
Accruing loans over 90 days past due | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | |
Nonaccrual loans (1) | | | 23,640 | | | | 5,819 | | | | 11,500 | | | | 13,577 | |
| | | | | | | | | | | | | | | | |
Total non-performing loans | | $ | 23,640 | | | $ | 5,819 | | | $ | 11,500 | | | $ | 13,577 | |
Foreclosed real estate and other foreclosed assets | | | 213 | | | | 1,013 | | | | 644 | | | | 876 | |
| | | | | | | | | | | | | | | | |
Total non-performing assets | | $ | 23,853 | | | $ | 6,832 | | | $ | 12,144 | | | $ | 14,453 | |
| | | | | | | | | | | | | | | | |
Allowance for Credit Losses: | | | | | | | | | | | | | | | | |
Allowance for loan losses | | $ | 21,830 | | | $ | 14,657 | | | $ | 15,136 | | | $ | 13,863 | |
Reserve for unfunded commitments | | | 1,383 | | | | 914 | | | | 881 | | | | 664 | |
| | | | | | | | | | | | | | | | |
Allowance for credit losses | | $ | 23,213 | | | $ | 15,571 | | | $ | 16,017 | | | $ | 14,527 | |
| | | | | | | | | | | | | | | | |
Credit Quality Ratios: | | | | | | | | | | | | | | | | |
Non-performing loans to total gross loans (1) | | | 1.43 | % | | | 0.47 | % | | | 0.94 | % | | | 1.14 | % |
Non-performing assets to total assets (1) | | | 1.19 | % | | | 0.47 | % | | | 0.86 | % | | | 1.05 | % |
Allowance for loan loss to total gross loans | | | 1.32 | % | | | 1.17 | % | | | 1.24 | % | | | 1.16 | % |
Allowance for credit losses to total gross loans | | | 1.41 | % | | | 1.25 | % | | | 1.31 | % | | | 1.22 | % |
Allowance for credit losses to non-performing loans (1) | | | 98.19 | % | | | 267.59 | % | | | 139.28 | % | | | 107.00 | % |
| (1) | Amounts and ratios shown net of government guarantees on non-performing loans of $1,058, $2,339 $3,978, and $2,007 respectively. |
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AWBC – 2007 Q2 Earnings
July 26, 2007
Page 10 of 13
AmericanWest Bancorporation
Selected Consolidated Financial Highlights
($ in thousands, except per share data and ratios; unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Six Months Ended | |
| | | 6/30/2007 | | | 3/31/2007 | | | 6/30/2006 | | | 6/30/2007 | | | 6/30/2006 | |
Allowance for Loan Losses: | | | | | | | | | | | | | | | | | | | | |
Balance, beginning of period | | $ | 14,657 | | | $ | 15,136 | | | $ | 14,015 | | | $ | 15,136 | | | $ | 13,895 | |
Provision for loan losses | | | 1,538 | | | | (33 | ) | | | 622 | | | | 1,505 | | | | 1,288 | |
Allowance related to acquired loans | | | 7,529 | | | | — | | | | — | | | | 7,529 | | | | 2,068 | |
Loans charged-off | | | (2,074 | ) | | | (546 | ) | | | (917 | ) | | | (2,620 | ) | | | (3,644 | ) |
Recoveries | | | 180 | | | | 100 | | | | 143 | | | | 280 | | | | 256 | |
| | | | | | | | | | | | | | | | | | | | |
Balance, end of period | | $ | 21,830 | | | $ | 14,657 | | | $ | 13,863 | | | $ | 21,830 | | | $ | 13,863 | |
| | | | | | | | | | | | | | | | | | | | |
Reserve for Unfunded Commitments: | | | | | | | | | | | | | | | | | | | | |
Balance, beginning of period | | $ | 914 | | | $ | 881 | | | $ | 582 | | | $ | 881 | | | $ | 466 | |
Provision for unfunded commitments | | | 212 | | | | 33 | | | | 82 | | | | 245 | | | | 198 | |
Reserve related to acquired unfunded commitments | | | 257 | | | | — | | | | — | | | | 257 | | | | —�� | |
| | | | | | | | | | | | | | | | | | | | |
Balance, end of period | | $ | 1,383 | | | $ | 914 | | | $ | 664 | | | $ | 1,383 | | | $ | 664 | |
| | | | | | | | | | | | | | | | | | | | |
Net charge-offs to average gross loans (1) | | | 0.46 | % | | | 0.15 | % | | | 0.26 | % | | | 0.33 | % | | | 0.62 | % |
Provision for credit losses to average gross loans (1) | | | 0.43 | % | | | 0.00 | % | | | 0.24 | % | | | 0.25 | % | | | 0.27 | % |
| (1) | Quarterly ratios are annualized. |
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AWBC – 2007 Q2 Earnings
July 26, 2007
Page 11 of 13
AmericanWest Bancorporation
Selected Consolidated Financial Highlights
($ in thousands, except per share data and ratios; unaudited)
Quarter to Date Net Interest Margin:
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended June 30,
2007 | | | Three Months Ended March 31,
2007 | | | Three Months Ended June 30,
2006 | |
| ($ in thousands) | | Average Balance | | Interest | | % | | | Average Balance | | Interest | | % | | | Average Balance | | Interest | | % | |
| Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans | | $ | 1,644,490 | | $ | 34,825 | | 8.49 | % | | $ | 1,229,508 | | $ | 24,329 | | 8.02 | % | | $ | 1,178,263 | | $ | 23,535 | | 8.01 | % |
Taxable securities | | | 47,883 | | | 625 | | 5.24 | % | | | 30,267 | | | 369 | | 4.94 | % | | | 34,574 | | | 357 | | 4.14 | % |
Non-taxable securities | | | 21,128 | | | 330 | | 6.26 | % | | | 8,974 | | | 142 | | 6.42 | % | | | 10,507 | | | 153 | | 5.84 | % |
FHLB Stock | | | 7,524 | | | 12 | | 0.64 | % | | | 6,319 | | | 6 | | 0.39 | % | | | 6,319 | | | — | | 0.00 | % |
Overnight deposits with other banks and other | | | 5,085 | | | 73 | | 5.76 | % | | | 4,494 | | | 65 | | 5.87 | % | | | 2,451 | | | 28 | | 4.58 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total interest earning assets | | | 1,726,110 | | | 35,865 | | 8.33 | % | | | 1,279,562 | | | 24,911 | | 7.90 | % | | | 1,232,114 | | | 24,073 | | 7.84 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Non-interest earning assets | | | 261,758 | | | | | | | | | 122,507 | | | | | | | | | 119,755 | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 1,987,868 | | | | | | | | $ | 1,402,069 | | | | | | | | $ | 1,351,869 | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest bearing demand deposits | | $ | 146,496 | | $ | 268 | | 0.73 | % | | $ | 88,671 | | $ | 178 | | 0.81 | % | | $ | 93,111 | | $ | 172 | | 0.74 | % |
Savings and MMDA deposits | | | 521,396 | | | 3,970 | | 3.05 | % | | | 386,572 | | | 3,097 | | 3.25 | % | | | 354,325 | | | 2,494 | | 2.82 | % |
Time deposits | | | 496,021 | | | 5,996 | | 4.85 | % | | | 434,822 | | | 5,245 | | 4.89 | % | | | 384,128 | | | 3,885 | | 4.06 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total interest bearing deposits | | | 1,163,913 | | | 10,234 | | 3.53 | % | | | 910,065 | | | 8,520 | | 3.80 | % | | | 831,564 | | | 6,551 | | 3.16 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Overnight borrowings | | | 58,644 | | | 826 | | 5.65 | % | | | 22,204 | | | 305 | | 5.57 | % | | | 70,294 | | | 894 | | 5.10 | % |
Junior subordinated debt | | | 41,239 | | | 766 | | 7.45 | % | | | 22,911 | | | 462 | | 8.18 | % | | | 20,280 | | | 419 | | 8.29 | % |
Other borrowings | | | 69,164 | | | 927 | | 5.38 | % | | | 62,128 | | | 841 | | 5.49 | % | | | 52,029 | | | 644 | | 4.96 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total interest bearing liabilities | | | 1,332,960 | | | 12,753 | | 3.84 | % | | | 1,017,308 | | | 10,128 | | 4.04 | % | | | 974,167 | | | 8,508 | | 3.50 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Non-interest bearing demand deposits | | | 351,751 | | | | | | | | | 218,213 | | | | | | | | | 222,516 | | | | | | |
Other non-interest bearing liabilities | | | 21,013 | | | | | | | | | 12,540 | | | | | | | | | 9,207 | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities | | | 1,705,724 | | | | | | | | | 1,248,061 | | | | | | | | | 1,205,890 | | | | | | |
| | | | | | | | | |
| Stockholders’ Equity | | | 282,144 | | | | | | | | | 154,008 | | | | | | | | | 145,979 | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 1,987,868 | | | | | | | | $ | 1,402,069 | | | | | | | | $ | 1,351,869 | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income and spread | | | | | $ | 23,112 | | 4.49 | % | | | | | $ | 14,783 | | 3.86 | % | | | | | $ | 15,565 | | 4.34 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net interest margin to average earning assets | | | | | | | | 5.37 | % | | | | | | | | 4.69 | % | | | | | | | | 5.07 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | �� |
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AWBC – 2007 Q2 Earnings
July 26, 2007
Page 12 of 13
AmericanWest Bancorporation
Selected Consolidated Financial Highlights
($ in thousands, except per share data and ratios; unaudited)
Year to Date Net Interest Margin:
| | | | | | | | | | | | | | | | | | |
| | | Six Months Ended June 30, | |
| | | 2007 | | | 2006 | |
| ($ in thousands) | | Average Balance | | Interest | | % | | | Average Balance | | Interest | | % | |
| Assets | | | | | | | | | | | | | | | | | | |
Loans | | $ | 1,438,143 | | $ | 59,154 | | 8.29 | % | | $ | 1,093,338 | | $ | 42,392 | | 7.82 | % |
Taxable securities | | | 39,124 | | | 995 | | 5.13 | % | | | 29,767 | | | 730 | | 4.95 | % |
Nontaxable securities | | | 15,084 | | | 471 | | 6.30 | % | | | 9,405 | | | 282 | | 6.05 | % |
FHLB Stock | | | 6,925 | | | 18 | | 0.52 | % | | | 5,922 | | | — | | 0.00 | % |
Overnight deposits with other banks and other | | | 4,791 | | | 138 | | 5.81 | % | | | 3,035 | | | 79 | | 5.25 | % |
| | | | | | | | | | | | | | | | | | |
Total interest earning assets | | | 1,504,067 | | | 60,776 | | 8.15 | % | | | 1,141,467 | | | 43,483 | | 7.68 | % |
| | | | | | | | | | | | | | | | | | |
Noninterest earning assets | | | 192,774 | | | | | | | | | 101,981 | | | | | | |
| | | | | | | | | | | | | | | | | | |
Total assets | | $ | 1,696,841 | | | | | | | | $ | 1,243,448 | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | |
Liabilities | | | | | | | | | | | | | | | | | | |
Interest bearing demand deposits | | $ | 117,743 | | $ | 446 | | 0.76 | % | | $ | 86,494 | | $ | 314 | | 0.73 | % |
Savings and MMDA deposits | | | 454,357 | | | 7,067 | | 3.14 | % | | | 337,363 | | | 4,475 | | 2.67 | % |
Time deposits | | | 465,591 | | | 11,241 | | 4.87 | % | | | 353,115 | | | 6,798 | | 3.88 | % |
| | | | | | | | | | | | | | | | | | |
Total interest bearing deposits | | | 1,037,691 | | | 18,754 | | 3.64 | % | | | 776,972 | | | 11,587 | | 3.01 | % |
| | | | | | | | | | | | | | | | | | |
Overnight borrowings | | | 40,524 | | | 1,130 | | 5.62 | % | | | 44,160 | | | 1,085 | | 4.95 | % |
Junior subordinated debt | | | 32,126 | | | 1,228 | | 7.71 | % | | | 16,040 | | | 674 | | 8.47 | % |
Other borrowings | | | 65,664 | | | 1,769 | | 5.43 | % | | | 55,632 | | | 1,305 | | 4.73 | % |
| | | | | | | | | | | | | | | | | | |
Total interest bearing liabilities | | | 1,176,005 | | | 22,881 | | 3.92 | % | | | 892,804 | | | 14,651 | | 3.31 | % |
| | | | | | | | | | | | | | | | | | |
Noninterest bearing demand deposits | | | 285,351 | | | | | | | | | 205,770 | | | | | | |
Other noninterest bearing liabilities | | | 16,800 | | | | | | | | | 8,928 | | | | | | |
| | | | | | | | | | | | | | | | | | |
Total liabilities | | | 1,478,156 | | | | | | | | | 1,107,502 | | | | | | |
| | | | | | |
Stockholders’ Equity | | | 218,685 | | | | | | | | | 135,946 | | | | | | |
| | | | | | | | | | | | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 1,696,841 | | | | | | | | $ | 1,243,448 | | | | | | |
| | | | | | | | | | | | | | | | | | |
Net interest income and spread | | | | | $ | 37,895 | | 4.23 | % | | | | | $ | 28,832 | | 4.37 | % |
| | | | | | | | | | | | | | | | | | |
Net interest margin to average earning assets | | | | | | | | 5.08 | % | | | | | | | | 5.09 | % |
| | | | | | | | | | | | | | | | | | |
The above net interest margin tables include non-accrual and loans held for sale in the average loan balances. Tax exempt securities income has been presented using a tax equivalent basis and an assumed tax rate of 34%.
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AWBC – 2007 Q2 Earnings
July 26, 2007
Page 13 of 13
AmericanWest Bancorporation
Selected Consolidated Financial Highlights
($ in thousands, except per share data and ratios; unaudited)
| | | | | | | | | | | | |
| | | Loans | | | Deposits | | | Assets | |
As reported 6/30/07 | | $ | 1,650,319 | | | $ | 1,510,166 | | | $ | 2,011,605 | |
less: 12/31/06 balances | | | 1,220,886 | | | | 1,123,939 | | | | 1,416,528 | |
| | | | | | | | | | | | |
Total growth year to date | | $ | 429,433 | | | $ | 386,227 | | | $ | 595,077 | |
| | | |
less: acquisition of FWB | | | 350,891 | | | | 383,386 | | | | 547,341 | |
| | | | | | | | | | | | |
Organic growth | | $ | 78,542 | | | $ | 2,841 | | | $ | 47,736 | |
| | | | | | | | | | | | |
Annualized organic growth rate | | | 13.0 | % | | | 0.5 | % | | | 6.8 | % |
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