AmericanWest Bancorporation Announces 2007 Third Quarter Financial Results

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 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. 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. About AmericanWest Bancorporation: AmericanWest Bancorporation is a bank holding company whose principal subsidiary is AmericanWest Bank which includes Far West Bank, operating as an integrated division of AmericanWest Bank. AmericanWest Bank is a community bank with 62 financial centers and three loan production offices located in Washington, Northern Idaho and Utah. For further information on the Company, please visit our web site at www.awbank.net/IR. This press release includes forward-looking statements, and AmericanWest Bancorporation intends for such statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements describe AmericanWest Bancorporation’s expectations regarding future events, including the improvements in operating performance, balance sheet growth and expense control. Future events are difficult to predict and are subject to risk and uncertainty which could cause actual results to differ materially and adversely. Additional information regarding risks and uncertainties is included in AmericanWest Bancorporation’s periodic filings on Forms 10-K and 10-Q with the Securities and Exchange Commission. AmericanWest Bancorporation undertakes no obligation to revise or amend any forward-looking statements to reflect subsequent events or circumstances. AmericanWest Bancorporation Selected Consolidated Financial Highlights ($ in thousands, except per share data and ratios; unaudited)               Consolidated Statements of Income: For the three months ended: INTEREST INCOME 9/30/2007 6/30/2007 9/30/2006 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 AmericanWest Bancorporation Selected Consolidated Financial Highlights ($ in thousands, except per share data and ratios; unaudited)         Consolidated Statements of Income: For the nine months ended: INTEREST INCOME 9/30/2007 9/30/2006 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 AmericanWest Bancorporation Selected Consolidated Financial Highlights ($ in thousands, except per share data and ratios; unaudited)         Consolidated Statement of Condition: Sept. 30, June 30, Dec. 31, Sept. 30, 2007 2007 2006 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 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. AmericanWest Bancorporation Selected Consolidated Financial Highlights ($ in thousands, except per share data and ratios; unaudited)         Loan Portfolio: 9/30/2007 6/30/2007 12/31/2006 9/30/2006 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 $1,764 respectively. AmericanWest Bancorporation Selected Consolidated Financial Highlights ($ in thousands, except per share data and ratios; unaudited)         Three Months Ended Nine Months Ended Allowance for Loan Losses: 9/30/2007 6/30/2007 9/30/2006 9/30/2007 9/30/2006 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. 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 Average Average Assets Balance Interest % Balance Interest % Balance Interest % 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%. 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 Average Assets Balance Interest % Balance Interest % 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%. 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 %