Americanwest Bancorporation (AWBC) Inactive
Filed: 25 Oct 07, 12:00am
Exhibit 99.1
AWBC – 2007 Q3 Earnings
October 25, 2007
Page 1 of 13
AMERICANWEST BANCORPORATION
NEWS RELEASE
AMERICANWEST BANCORPORATION ANNOUNCES
2007 THIRD QUARTER FINANCIAL RESULTS
SPOKANE, WASHINGTON, October 25, 2007 (Business Wire) - AmericanWest Bancorporation (NASDAQ: AWBC) today announced its third quarter 2007 financial results, which included the following highlights:
| • | 19% increase in diluted earnings per share over the second quarter of 2007 and 288% over the same period in 2006 |
| • | Annualized loan growth of 18% and annualized core deposit growth of 16% |
| • | Return on average assets of 1.03%, an improvement of 11 basis points over the second quarter of 2007 and 75 basis points over the same period in 2006 |
| • | 18% reduction in the level of non-performing assets as a percentage of total assets |
Net income for the quarter ended September 30, 2007 was $5.3 million, or $0.31 per diluted share, as compared with $1.0 million, or $0.08 per diluted share, for the third quarter of 2006. The third quarter 2006 financial results were adversely impacted by a special provision for credit losses of $2.4 million, or $0.13 per share on an after-tax basis, which was recognized in connection with the charge-off of a single loan. Excluding the impact of this item, the increase in diluted earnings per share for the third quarter 2007 over the same period in 2006 was $0.10, or 48%. This increase is principally attributable to the positive impact of the merger with Far West Bancorporation (completed on April 1, 2007), balance sheet growth and expense control initiatives implemented during the first quarter of 2007.
“Our improved third quarter results reflect continued progress with execution of the Company’s strategy,” remarked Robert M. Daugherty, President and Chief Executive Officer. “We remain focused on improving our financial performance through balance sheet growth, expense control and diligence with asset quality.”
Net Interest Margin:
The tax-equivalent net interest margin for the third quarter of 2007 was 5.22%, a decrease of 15 basis points from the prior quarter, and an increase of 19 basis points from the same period in 2006. The decrease from the prior quarter is due to a decline in the yield on earning assets of 5 basis points and an increase in the cost of interest bearing liabilities of 11 basis points.
The average yield on loans for the third quarter of 2007 was 8.45%, a decrease of 4 basis points from the second quarter of 2007 and an increase of 29 basis points from the same period in 2006. The decrease in the average yield on loans from the prior quarter was principally attributable to the loss of interest on a large relationship which was placed on non-accrual status at the end of the second quarter and the reduction in the index rates on
AWBC – 2007 Q3 Earnings
October 25, 2007
Page 2 of 13
certain variable rate loans effective September 19, 2007. The increase over the same period of 2006 is principally due to the Far West Bank portfolio acquired, which was partially offset by a modification in the accounting for deferred loan fees and origination costs implemented during the first quarter of 2007.
The average cost of interest bearing deposits for the third quarter of 2007 was 3.64%, an increase of 11 basis points from the second quarter of 2007 and an increase of 21 basis points from the same period in 2006. The increase from the prior quarter was related to higher rates paid on deposit products. The total cost of deposits also increased 11 basis points as the average non-interest bearing deposits remained relatively constant at 23% of the total deposits.
Loan Growth and Asset Quality:
Loan growth was 18% on an annualized basis for the third quarter of 2007. Approximately $43 million, or 57%, of the third quarter loan growth was generated by the Company’s loan production offices located in South Jordan and Salt Lake City, Utah.
Total non-performing assets, net of government guarantees on loans, were 0.97% of total assets at September 30, 2007, as compared to 1.19% of total assets at June 30, 2007 and 0.76% of total assets at September 30, 2006. The decline during the quarter is mainly related to $1.3 million of pay-downs received and $1.6 million of charge-offs recorded on loans to a wood products manufacturing company that were placed on non-accrual status during the second quarter of 2007. Total foreclosed assets at September 30, 2007 had a carrying value of $298,000 and consisted of two properties. One property was sold during the third quarter with a minimal gain.
The Company recognized a provision for credit losses of $1.3 million, or 0.29% of average loans on an annualized basis, for the quarter ended September 30, 2007 as compared to $3.7 million, or 1.23% of average loans, for the quarter ended September 30, 2006. For the quarter ended September 30, 2007, annualized net charge-offs as a percentage of average loans were 0.47% as compared to 0.91% in the same quarter of the prior year. For the nine month period ended September 30, 2007, the annualized provision for loan losses to total average loans and net charge-offs as a percentage of average loans were 0.26% and 0.38%, respectively.
The allowance for credit losses, which is comprised of the allowance for loan losses and reserve for unfunded commitments, was $22.4 million, or 1.30% of total loans, at September 30, 2007 as compared to $23.2 million, or 1.41% of total loans, at June 30, 2007. The allowance for credit losses represented 113% of total non-performing loans (net of government guarantees) as of September 30, 2007 as compared to 98% at June 30, 2007 and 139% at December 31, 2006.
Deposits and Borrowed Funds:
Total deposits as of September 30, 2007 were $1.6 billion, an increase of $87 million from June 30, 2007. This increase consisted of increases in NOW, savings and money market accounts of $40 million including an increase in public money market accounts of $14 million. Time deposits increased $34 million during the quarter, and included $20 million of brokered certificates of deposit.
Total FHLB and other borrowings at September 30, 2007 were $131 million, a decrease of $26 million from June 30, 2007. This is mainly a result of deposit growth exceeding loan growth during the quarter by approximately $12 million and a decline in cash and cash equivalents of $7 million.
AWBC – 2007 Q3 Earnings
October 25, 2007
Page 3 of 13
Non-interest Income and Expense:
Non-interest income was $4.5 million for the quarter ended September 30, 2007 as compared to $4.7 million in the second quarter and $2.8 million for the same period in 2006. The decrease from the prior quarter is mainly attributed to a decline in net premises and equipment gains of $162,000 and a decline in mortgage loan servicing fees of $119,000. The decrease in mortgage loan servicing fees is attributable to the sale of a mortgage loan servicing portfolio which was acquired from Far West Bank. The mortgage loan servicing portfolio was sold in the second quarter and no gain or loss was recognized. During the third quarter, the Company recorded a gain of $82,000 related to a recovery on a foreclosed real estate property. This compares to a gain recorded in the second quarter of 2007 related to the sale of one foreclosed property of $55,000.
Non-interest expense was $18.8 million for the quarter ended September 30, 2007 as compared to $13.2 million for same period in 2006 and $19.0 million for the second quarter of 2007. The decrease from the second quarter of 2007 is primarily due to lower salaries and benefits expense resulting from a reduction in incentive accruals and an increase in deferred loan origination costs compared to the second quarter. The majority of the increase in salaries and benefits and total non-interest expenses over the third quarter of 2006 is related to growth in full-time equivalent employees from the Far West Bank merger and staff additions related to residential mortgage lending, new financial centers and two Utah loan production offices opened since late 2006.
The efficiency ratio improved to 63.4% for the quarter ended September 30, 2007, as compared to 64.7% in the prior quarter and 70.1% for the same period in 2006.
Income Taxes:
The effective tax rate for the quarter ended September 30, 2007 was 32.4%, as compared to 34.9% for the second quarter of 2007 and 37.9% for the third quarter of 2006. The decrease in the effective tax rate from the prior quarter is a result of adjustments related to the Company’s 2006 federal tax return which was filed during the third quarter of 2007. These adjustments were mainly the result of unanticipated tax credits received on an investment. Excluding this adjustment, the effective rate for the third quarter 2007 would have been 34.1%. The significant decline in the effective tax rate from the prior year is principally related to the recapture of certain tax credits during 2006 which are continuing in 2007 with less of an impact.
Earnings Conference Call:
The third quarter earnings conference call will be held Thursday, October 25, 2007 at 10:00 a.m. PDT (1:00 p.m. EDT). Management will discuss the third quarter 2007 operating results and provide an update on recent initiatives. Shareholders, analysts and other interested parties are invited to join the call. The telephone access number is (877) 407-0782 and no pass code is required.
AWBC – 2007 Q3 Earnings
October 25, 2007
Page 4 of 13
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, balance sheet growth and expense control. Future events are difficult to predict and are subject to risk and uncertainty which could cause actual results to differ materially and adversely. Additional information regarding risks and uncertainties is included in AmericanWest Bancorporation’s periodic filings on Forms 10-K and 10-Q with the Securities and Exchange Commission. AmericanWest Bancorporation undertakes no obligation to revise or amend any forward-looking statements to reflect subsequent events or circumstances.
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AWBC – 2007 Q3 Earnings
October 25, 2007
Page 5 of 13
AmericanWest Bancorporation
Selected Consolidated Financial Highlights
($ in thousands, except per share data and ratios; unaudited)
Consolidated Statements of Income:
| For the three months ended: | |||||||||
| 9/30/2007 | 6/30/2007 | 9/30/2006 | |||||||
INTEREST INCOME | |||||||||
Interest and fees on loans | $ | 36,378 | $ | 34,825 | $ | 24,447 | |||
Interest on securities | 814 | 844 | 494 | ||||||
Other interest income | 159 | 85 | 44 | ||||||
TOTAL INTEREST INCOME | 37,351 | 35,754 | 24,985 | ||||||
INTEREST EXPENSE | |||||||||
Interest on deposits | 11,054 | 10,234 | 7,281 | ||||||
Interest on borrowings | 2,807 | 2,519 | 1,993 | ||||||
TOTAL INTEREST EXPENSE | 13,861 | 12,753 | 9,274 | ||||||
NET INTEREST INCOME | 23,490 | 23,001 | 15,711 | ||||||
Provision for credit losses | 1,250 | 1,750 | 3,681 | ||||||
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 22,240 | 21,251 | 12,030 | ||||||
NON-INTEREST INCOME | |||||||||
Fees and service charges on deposits | 2,588 | 2,498 | 1,467 | ||||||
Fees on mortgage loan sales | 940 | 1,004 | 452 | ||||||
Other | 922 | 1,185 | 845 | ||||||
TOTAL NON-INTEREST INCOME | 4,450 | 4,687 | 2,764 | ||||||
NON-INTEREST EXPENSE | |||||||||
Salaries and employee benefits | 11,007 | 11,409 | 7,748 | ||||||
Equipment expense | 1,699 | 1,773 | 988 | ||||||
Occupancy expense, net | 1,490 | 1,388 | 1,064 | ||||||
Amortization of intangible assets | 1,063 | 1,063 | 294 | ||||||
State business and occupation tax | 335 | 323 | 383 | ||||||
Foreclosed real estate and other foreclosed assets expense | 45 | 74 | 52 | ||||||
Other | 3,137 | 2,934 | 2,716 | ||||||
TOTAL NON-INTEREST EXPENSE | 18,776 | 18,964 | 13,245 | ||||||
INCOME BEFORE PROVISION FOR INCOME TAX | 7,914 | 6,974 | 1,549 | ||||||
PROVISION FOR INCOME TAX | 2,565 | 2,433 | 587 | ||||||
NET INCOME | $ | 5,349 | $ | 4,541 | $ | 962 | |||
Basic earnings per common share | $ | 0.31 | $ | 0.26 | $ | 0.08 | |||
Diluted earnings per common share | $ | 0.31 | $ | 0.26 | $ | 0.08 | |||
Basic weighted average shares outstanding | 17,197,656 | 17,177,214 | 11,373,559 | ||||||
Diluted weighted average shares outstanding | 17,268,007 | 17,290,389 | 11,530,546 | ||||||
Ending book value per share | $ | 16.76 | $ | 16.46 | $ | 13.18 | |||
Ending tangible book value per share | $ | 8.20 | $ | 7.84 | $ | 9.59 | |||
Ending shares outstanding | 17,195,834 | 17,185,649 | 11,376,497 | ||||||
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October 25, 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 nine months ended: | ||||||
| 9/30/2007 | 9/30/2006 | |||||
INTEREST INCOME | ||||||
Interest and fees on loans | $ | 95,532 | $ | 66,839 | ||
Interest on securities | 2,120 | 1,410 | ||||
Other interest income | 315 | 123 | ||||
TOTAL INTEREST INCOME | 97,967 | 68,372 | ||||
INTEREST EXPENSE | ||||||
Interest on deposits | 29,808 | 18,868 | ||||
Interest on borrowings | 6,934 | 5,057 | ||||
TOTAL INTEREST EXPENSE | 36,742 | 23,925 | ||||
NET INTEREST INCOME | 61,225 | 44,447 | ||||
Provision for credit losses | 3,000 | 5,167 | ||||
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 58,225 | 39,280 | ||||
NON-INTEREST INCOME | ||||||
Fees and service charges on deposits | 6,476 | 4,021 | ||||
Fees on mortgage loan sales | 2,286 | 1,137 | ||||
Other | 2,780 | 1,552 | ||||
TOTAL NON-INTEREST INCOME | 11,542 | 6,710 | ||||
NON-INTEREST EXPENSE | ||||||
Salaries and employee benefits | 30,834 | 22,015 | ||||
Equipment expense | 4,733 | 2,828 | ||||
Occupancy expense, net | 4,105 | 3,006 | ||||
Amortization of intangible assets | 2,417 | 688 | ||||
State business and occupation tax | 962 | 949 | ||||
Foreclosed real estate and other foreclosed assets expense | 167 | 559 | ||||
Other | 8,289 | 7,552 | ||||
TOTAL NON-INTEREST EXPENSE | 51,507 | 37,597 | ||||
INCOME BEFORE PROVISION FOR INCOME TAX | 18,260 | 8,393 | ||||
PROVISION FOR INCOME TAX | 6,185 | 3,014 | ||||
NET INCOME | $ | 12,075 | $ | 5,379 | ||
Basic earnings per common share | $ | 0.79 | $ | 0.48 | ||
Diluted earnings per common share | $ | 0.78 | $ | 0.48 | ||
Basic weighted average shares outstanding | 15,283,810 | 11,114,884 | ||||
Diluted weighted average shares outstanding | 15,387,443 | 11,295,170 | ||||
Ending book value per share | $ | 16.76 | $ | 13.18 | ||
Ending tangible book value per share | $ | 8.20 | $ | 9.59 | ||
Ending shares outstanding | 17,195,834 | 11,376,497 | ||||
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October 25, 2007
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AmericanWest Bancorporation
Selected Consolidated Financial Highlights
($ in thousands, except per share data and ratios; unaudited)
Consolidated Statement of Condition: | ||||||||||||||
| September 30, 2007 | June 30, 2007 | December 31, 2006 | September 30, 2006 | |||||||||||
| ASSETS | ||||||||||||||
Cash and due from banks | $ | 50,818 | $ | 58,850 | $ | 45,866 | $ | 38,888 | ||||||
Overnight interest bearing deposits with other banks | 1,485 | 688 | 9,863 | 175 | ||||||||||
Cash and cash equivalents | 52,303 | 59,538 | 55,729 | 39,063 | ||||||||||
Securities, available-for-sale at fair value | 70,674 | 68,979 | 39,518 | 42,758 | ||||||||||
Loans, net of allowance for loan losses | 1,700,895 | 1,625,242 | 1,204,519 | 1,167,558 | ||||||||||
Loans, held for sale | 10,624 | 13,051 | 2,913 | 7,672 | ||||||||||
Accrued interest receivable | 13,927 | 11,816 | 8,311 | 8,958 | ||||||||||
FHLB stock | 7,801 | 7,801 | 6,319 | 6,319 | ||||||||||
Premises and equipment, net | 45,182 | 44,116 | 30,484 | 27,320 | ||||||||||
Foreclosed real estate and other foreclosed assets | 298 | 213 | 644 | 573 | ||||||||||
Bank owned life insurance | 28,829 | 28,550 | 19,716 | 19,537 | ||||||||||
Goodwill | 129,155 | 129,147 | 33,073 | 33,068 | ||||||||||
Intangible assets | 18,005 | 19,068 | 7,506 | 7,800 | ||||||||||
Other assets | 5,784 | 4,084 | 7,796 | 7,631 | ||||||||||
TOTAL ASSETS | $ | 2,083,477 | $ | 2,011,605 | $ | 1,416,528 | $ | 1,368,257 | ||||||
| LIABILITIES | ||||||||||||||
Non-interest bearing demand deposits | $ | 362,387 | $ | 348,763 | $ | 236,375 | $ | 225,558 | ||||||
Interest bearing deposits: | ||||||||||||||
NOW, savings accounts and MMDA | 698,887 | 659,246 | 476,852 | 472,974 | ||||||||||
Time, $100,000 and over | 307,326 | 270,270 | 217,508 | 214,736 | ||||||||||
Other time | 228,612 | 231,887 | 193,204 | 187,425 | ||||||||||
TOTAL DEPOSITS | 1,597,212 | 1,510,166 | 1,123,939 | 1,100,693 | ||||||||||
FHLB advances | 109,516 | 157,329 | 105,759 | 80,575 | ||||||||||
Other borrowings | 21,671 | 274 | 307 | 5,190 | ||||||||||
Junior subordinated debt | 41,239 | 41,239 | 20,620 | 20,620 | ||||||||||
Accrued interest payable | 5,937 | 5,049 | 4,270 | 3,617 | ||||||||||
Other liabilities | 19,749 | 14,680 | 9,596 | 7,642 | ||||||||||
TOTAL LIABILITIES | 1,795,324 | 1,728,737 | 1,264,491 | 1,218,337 | ||||||||||
| STOCKHOLDERS’ EQUITY | ||||||||||||||
Common stock, no par | 253,266 | 252,951 | 127,396 | 127,242 | ||||||||||
Retained earnings | 34,934 | 30,273 | 24,576 | 22,666 | ||||||||||
Accumulated other comprehensive income (loss), net of tax | (47 | ) | (356 | ) | 65 | 12 | ||||||||
TOTAL STOCKHOLDERS’ EQUITY | 288,153 | 282,868 | 152,037 | 149,920 | ||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 2,083,477 | $ | 2,011,605 | $ | 1,416,528 | $ | 1,368,257 | ||||||
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October 25, 2007
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AmericanWest Bancorporation
Selected Consolidated Financial Highlights
($ in thousands, except per share data and ratios; unaudited)
| Three Months Ended | |||||||||
Financial Ratios, annualized: | 9/30/2007 | 6/30/2007 | 9/30/2006 | ||||||
Return on average assets | 1.03 | % | 0.92 | % | 0.28 | % | |||
Return on average equity | 7.40 | % | 6.46 | % | 2.55 | % | |||
Return on tangible average equity | 15.26 | % | 13.60 | % | 3.51 | % | |||
Efficiency ratio | 63.40 | % | 64.65 | % | 70.10 | % | |||
Non-interest income to average assets | 0.86 | % | 0.95 | % | 0.80 | % | |||
Non-interest expenses to average assets | 3.63 | % | 3.83 | % | 3.85 | % | |||
Net interest margin to average earning assets (1) | 5.22 | % | 5.37 | % | 5.03 | % | |||
Ending shareholders’ equity to assets | 13.83 | % | 14.06 | % | 10.96 | % | |||
Ending tangible shareholders’ equity to tangible assets | 7.28 | % | 7.23 | % | 8.22 | % | |||
| Nine Months Ended | |||||||||
Year to Date Financial Ratios, annualized: | 9/30/2007 | 9/30/2006 | |||||||
Return on average assets | 0.89 | % | 0.56 | % | |||||
Return on average equity | 6.68 | % | 5.12 | % | |||||
Return on tangible average equity | 12.42 | % | 6.60 | % | |||||
Efficiency ratio | 67.46 | % | 72.15 | % | |||||
Non-interest income to average assets | 0.85 | % | 0.70 | % | |||||
Non-interest expenses to average assets | 3.79 | % | 3.92 | % | |||||
Net interest margin to average earning assets (1) | 5.13 | % | 5.07 | % | |||||
| (1) | Presented on a tax equivalent basis for tax exempt securities. |
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October 25, 2007
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AmericanWest Bancorporation
Selected Consolidated Financial Highlights
($ in thousands, except per share data and ratios; unaudited)
| 9/30/2007 | 6/30/2007 | 12/31/2006 | 9/30/2006 | |||||||||||||
Loan Portfolio: | ||||||||||||||||
Commercial real estate | $ | 821,844 | $ | 790,504 | $ | 651,386 | $ | 605,097 | ||||||||
Commercial and industrial | 471,771 | 438,642 | 283,889 | 281,956 | ||||||||||||
Agricultural | 152,149 | 146,461 | 141,646 | 155,875 | ||||||||||||
Residential construction | 123,343 | 122,115 | 47,235 | 40,523 | ||||||||||||
Residential mortgage | 110,940 | 99,522 | 74,222 | 74,910 | ||||||||||||
Installment and other | 45,502 | 53,075 | 22,508 | 24,846 | ||||||||||||
Total loans | 1,725,549 | 1,650,319 | 1,220,886 | 1,183,207 | ||||||||||||
Allowance for loan losses | (21,023 | ) | (21,830 | ) | (15,136 | ) | (14,761 | ) | ||||||||
Deferred loan fees, net of deferred costs | (3,631 | ) | (3,247 | ) | (1,231 | ) | (888 | ) | ||||||||
Net loans | $ | 1,700,895 | $ | 1,625,242 | $ | 1,204,519 | $ | 1,167,558 | ||||||||
Non-performing Assets: | ||||||||||||||||
Accruing loans over 90 days past due | $ | 0 | $ | 0 | $ | 0 | $ | 549 | ||||||||
Nonaccrual loans (1) | 19,846 | 23,640 | 11,500 | 9,255 | ||||||||||||
Total non-performing loans | $ | 19,846 | $ | 23,640 | $ | 11,500 | $ | 9,804 | ||||||||
Foreclosed real estate and other foreclosed assets | 298 | 213 | 644 | 573 | ||||||||||||
Total non-performing assets | $ | 20,144 | $ | 23,853 | $ | 12,144 | $ | 10,377 | ||||||||
Allowance for Credit Losses: | ||||||||||||||||
Allowance for loan losses | $ | 21,023 | $ | 21,830 | $ | 15,136 | $ | 14,761 | ||||||||
Reserve for unfunded commitments | 1,402 | 1,383 | 881 | 716 | ||||||||||||
Allowance for credit losses | $ | 22,425 | $ | 23,213 | $ | 16,017 | $ | 15,477 | ||||||||
Credit Quality Ratios: | ||||||||||||||||
Non-performing loans to total gross loans (1) | 1.15 | % | 1.43 | % | 0.94 | % | 0.83 | % | ||||||||
Non-performing assets to total assets (1) | 0.97 | % | 1.19 | % | 0.86 | % | 0.76 | % | ||||||||
Allowance for loan loss to total gross loans | 1.22 | % | 1.32 | % | 1.24 | % | 1.25 | % | ||||||||
Allowance for credit losses to total gross loans | 1.30 | % | 1.41 | % | 1.31 | % | 1.31 | % | ||||||||
Allowance for credit losses to non-performing loans (1) | 113.00 | % | 98.19 | % | 139.28 | % | 157.86 | % | ||||||||
| (1) | Amounts and ratios shown net of government guarantees on non-performing loans of $1,096, $1,059 $3,978, and $1,764 respectively. |
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October 25, 2007
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AmericanWest Bancorporation
Selected Consolidated Financial Highlights
($ in thousands, except per share data and ratios; unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| 9/30/2007 | 6/30/2007 | 9/30/2006 | 9/30/2007 | 9/30/2006 | ||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||
Balance, beginning of period | $ | 21,830 | $ | 14,657 | $ | 13,863 | $ | 15,136 | $ | 13,895 | ||||||||||
Provision for loan losses | 1,231 | 1,538 | 3,629 | 2,736 | 4,917 | |||||||||||||||
Allowance related to acquired loans | — | 7,529 | — | 7,529 | 2,068 | |||||||||||||||
Loans charged-off | (2,148 | ) | (2,074 | ) | (3,006 | ) | (4,768 | ) | (6,650 | ) | ||||||||||
Recoveries | 110 | 180 | 275 | 390 | 531 | |||||||||||||||
Balance, end of period | $ | 21,023 | $ | 21,830 | $ | 14,761 | $ | 21,023 | $ | 14,761 | ||||||||||
Reserve for Unfunded Commitments: | ||||||||||||||||||||
Balance, beginning of period | $ | 1,383 | $ | 914 | $ | 664 | $ | 881 | $ | 466 | ||||||||||
Provision for unfunded commitments | 19 | 212 | 52 | 264 | 250 | |||||||||||||||
Reserve related to acquired unfunded commitments | — | 257 | — | 257 | — | |||||||||||||||
Balance, end of period | $ | 1,402 | $ | 1,383 | $ | 716 | $ | 1,402 | $ | 716 | ||||||||||
Net charge-offs to average gross loans (1) | 0.47 | % | 0.46 | % | 0.91 | % | 0.38 | % | 0.73 | % | ||||||||||
Provision for credit losses to average gross loans (1) | 0.29 | % | 0.43 | % | 1.23 | % | 0.26 | % | 0.61 | % | ||||||||||
| (1) | Annualized ratio includes loans held for sale and non-accrual loans in average gross loans. |
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October 25, 2007
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AmericanWest Bancorporation
Selected Consolidated Financial Highlights
($ in thousands, except per share data and ratios; unaudited)
Quarter to Date Net Interest Margin:
| Three Months Ended Sept 30, 2007 | Three Months Ended June 30, 2007 | Three Months Ended Sept 30, 2006 | |||||||||||||||||||||||||
| ($ in thousands) | Average Balance | Interest | % | Average Balance | Interest | % | Average Balance | Interest | % | ||||||||||||||||||
| Assets | |||||||||||||||||||||||||||
Loans (1) | $ | 1,707,745 | $ | 36,378 | 8.45 | % | $ | 1,644,490 | $ | 34,825 | 8.49 | % | $ | 1,189,151 | $ | 24,447 | 8.16 | % | |||||||||
Taxable securities | 46,506 | 609 | 5.20 | % | 47,883 | 625 | 5.24 | % | 33,361 | 386 | 4.59 | % | |||||||||||||||
Non-taxable securities (2) | 21,196 | 311 | 5.82 | % | 21,128 | 330 | 6.26 | % | 10,769 | 165 | 6.08 | % | |||||||||||||||
FHLB Stock | 7,801 | 12 | 0.61 | % | 7,524 | 12 | 0.64 | % | 6,319 | — | 0.00 | % | |||||||||||||||
Overnight deposits with other banks and other | 10,635 | 147 | 5.48 | % | 5,085 | 73 | 5.76 | % | 3,106 | 44 | 5.62 | % | |||||||||||||||
Total interest earning assets | 1,793,883 | 37,457 | 8.28 | % | 1,726,110 | 35,865 | 8.33 | % | 1,242,706 | 25,042 | 7.99 | % | |||||||||||||||
Non-interest earning assets | 260,876 | 261,758 | 120,668 | ||||||||||||||||||||||||
Total assets | $ | 2,054,759 | $ | 1,987,868 | $ | 1,363,374 | |||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||
Interest bearing demand deposits | $ | 143,054 | $ | 313 | 0.87 | % | $ | 146,496 | $ | 268 | 0.73 | % | $ | 91,827 | $ | 168 | 0.73 | % | |||||||||
Savings and MMDA deposits | 531,447 | 4,166 | 3.11 | % | 521,396 | 3,970 | 3.05 | % | 352,140 | 2,700 | 3.04 | % | |||||||||||||||
Time deposits | 529,283 | 6,575 | 4.93 | % | 496,021 | 5,996 | 4.85 | % | 397,454 | 4,413 | 4.41 | % | |||||||||||||||
Total interest bearing deposits | 1,203,784 | 11,054 | 3.64 | % | 1,163,913 | 10,234 | 3.53 | % | 841,421 | 7,281 | 3.43 | % | |||||||||||||||
Overnight borrowings | 23,455 | 328 | 5.55 | % | 58,644 | 826 | 5.65 | % | 42,273 | 582 | 5.46 | % | |||||||||||||||
Junior subordinated debt | 41,239 | 774 | 7.45 | % | 41,239 | 766 | 7.45 | % | 20,620 | 438 | 8.43 | % | |||||||||||||||
Other borrowings | 124,004 | 1,705 | 5.45 | % | 69,164 | 927 | 5.38 | % | 71,343 | 973 | 5.41 | % | |||||||||||||||
Total interest bearing liabilities | 1,392,482 | 13,861 | 3.95 | % | 1,332,960 | 12,753 | 3.84 | % | 975,657 | 9,274 | 3.77 | % | |||||||||||||||
Non-interest bearing demand deposits | 353,587 | 351,751 | 227,782 | ||||||||||||||||||||||||
Other non-interest bearing liabilities | 21,919 | 21,013 | 10,222 | ||||||||||||||||||||||||
Total liabilities | 1,767,988 | 1,705,724 | 1,213,661 | ||||||||||||||||||||||||
| Stockholders’ Equity | 286,771 | 282,144 | 149,713 | ||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,054,759 | $ | 1,987,868 | $ | 1,363,374 | |||||||||||||||||||||
Net interest income and spread | $ | 23,596 | 4.33 | % | $ | 23,112 | 4.49 | % | $ | 15,768 | 4.22 | % | |||||||||||||||
Net interest margin to average earning assets | 5.22 | % | 5.37 | % | 5.03 | % | |||||||||||||||||||||
| (1) | Includes loans held for sale and non-accrual loans. |
| (2) | Tax-exempt securities income has been presented using a tax equivalent basis and an assumed tax rate of 34%. |
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AWBC – 2007 Q3 Earnings
October 25, 2007
Page 12 of 13
AmericanWest Bancorporation
Selected Consolidated Financial Highlights
($ in thousands, except per share data and ratios; unaudited)
Year to Date Net Interest Margin: | ||||||||||||||||||
| Nine Months Ended September 30, | ||||||||||||||||||
| 2007 | 2006 | |||||||||||||||||
| ($ in thousands) | Average Balance | Interest | % | Average Balance | Interest | % | ||||||||||||
| Assets | ||||||||||||||||||
Loans (1) | $ | 1,528,993 | $ | 95,532 | 8.35 | % | $ | 1,126,255 | $ | 66,839 | 7.93 | % | ||||||
Taxable securities | 41,609 | 1,603 | 5.15 | % | 30,977 | 1,115 | 4.81 | % | ||||||||||
Nontaxable securities (2) | 17,144 | 782 | 6.10 | % | 9,865 | 447 | 6.06 | % | ||||||||||
FHLB Stock | 7,220 | 30 | 0.55 | % | 6,055 | — | 0.00 | % | ||||||||||
Overnight deposits with other banks and other | 6,760 | 285 | 5.64 | % | 3,005 | 123 | 5.47 | % | ||||||||||
Total interest earning assets | 1,601,726 | 98,232 | 8.20 | % | 1,176,157 | 68,524 | 7.79 | % | ||||||||||
Noninterest earning assets | 215,714 | 107,694 | ||||||||||||||||
Total assets | $ | 1,817,440 | $ | 1,283,851 | ||||||||||||||
| Liabilities | ||||||||||||||||||
Interest bearing demand deposits | $ | 126,273 | $ | 759 | 0.80 | % | $ | 88,291 | $ | 482 | 0.73 | % | ||||||
Savings and MMDA deposits | 480,336 | 11,233 | 3.13 | % | 342,342 | 7,175 | 2.80 | % | ||||||||||
Time deposits | 487,059 | 17,816 | 4.89 | % | 368,025 | 11,211 | 4.07 | % | ||||||||||
Total interest bearing deposits | 1,093,668 | 29,808 | 3.64 | % | 798,658 | 18,868 | 3.16 | % | ||||||||||
Overnight borrowings | 34,743 | 1,458 | 5.61 | % | 43,544 | 1,668 | 5.12 | % | ||||||||||
Junior subordinated debt | 35,197 | 2,002 | 7.60 | % | 17,584 | 1,111 | 8.45 | % | ||||||||||
Other borrowings | 85,325 | 3,474 | 5.44 | % | 60,745 | 2,278 | 5.01 | % | ||||||||||
Total interest bearing liabilities | 1,248,933 | 36,742 | 3.93 | % | 920,531 | 23,925 | 3.47 | % | ||||||||||
Noninterest bearing demand deposits | 308,341 | 213,184 | ||||||||||||||||
Other noninterest bearing liabilities | 18,522 | 9,548 | ||||||||||||||||
Total liabilities | 1,575,796 | 1,143,263 | ||||||||||||||||
| Stockholders’ Equity | 241,644 | 140,588 | ||||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,817,440 | $ | 1,283,851 | ||||||||||||||
Net interest income and spread | $ | 61,490 | 4.27 | % | $ | 44,599 | 4.32 | % | ||||||||||
Net interest margin to average earning assets | 5.13 | % | 5.07 | % | ||||||||||||||
| (1) | Includes loans held for sale and non-accrual loans. |
| (2) | Tax-exempt securities income has been presented using a tax equivalent basis and an assumed tax rate of 34%. |
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AWBC – 2007 Q3 Earnings
October 25, 2007
Page 13 of 13
AmericanWest Bancorporation
Selected Consolidated Financial Highlights
($ in thousands, except per share data and ratios; unaudited)
Year to Date Organic Growth: | ||||||||||||
| Loans | Deposits | Assets | ||||||||||
As reported September 30, 2007 | $ | 1,725,549 | $ | 1,597,212 | $ | 2,083,477 | ||||||
less: December 31, 2006 balances | 1,220,886 | 1,123,939 | 1,416,528 | |||||||||
Total growth year to date | $ | 504,663 | $ | 473,273 | $ | 666,949 | ||||||
less: acquisition of FWB | 350,634 | 383,386 | 547,354 | |||||||||
Organic growth | $ | 154,029 | $ | 89,887 | $ | 119,595 | ||||||
Annualized organic growth rate | 16.9 | % | 10.7 | % | 11.3 | % | ||||||
Contacts:
AmericanWest Bancorporation
Robert M. Daugherty
President and CEO
509.344.5329
bdaugherty@awbank.net
or
Patrick J. Rusnak
Chief Operating Officer
509.232.1963
prusnak@awbank.net
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