AmericanWest Bancorporation — D.A. Davidson Ninth Annual Financial Services Conference 2007
26 slides from AmericanWest Bancorporation's conference presentation, May 9, 2007
Slide 1: AmericanWest Bancorporation
NASDAQ: AWBC awbank.net = = — DAA. Davidson Ninth Annual Financial Services Cont AmericanWest Bancorporation ference | May 9-10, 2007 | Seattle, Wash, Robert M. Daugherty President and CEO Patrick J. Rusnak Executive VP and COO
Slide 2: PSLA Disclaimer
PSLA Disclaimer This presentation includes forward-looking statements which AmericanWest intends to be covered by the safe harbor provisions of the Private Securities Litigation Act of 1995. These forward- looking statements describe management’s expectations regarding future events, including but n
Slide 3: Overview
Overview • $2.0 billion single-bank holding company based in Spokane, Washington • Traded on NASDAQ Global Select Market under symbol “AWBC” • Market Capitalization of $350 million as of May 1, 2007 • Originally founded in 1974 (United Security Bank) • Operates 62 financial centers and 4 loan produc
Slide 4: Branch locations map
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Slide 5: AWBC Executive Management Team
AWBC Executive Management Team Joined Prior Industry Name Title Age AWBC Experience Robert M. Daugherty President & CEO Sep-04 Humboldt Bancorp, Draper Bank & Trust, US Bank Patrick J. Rusnak EVP/COO/CFO Sep-06 Western Sierra Bancorp, Humboldt Bancorp, United Community Banks, Inc. Rick Shamberger EV
Slide 6: Turn Around Story – Chapter (2004-5) Getting Out of the Regulatory Doghouse
Turn Around Story – Chapter 1 (2004-5) Getting Out of the Regulatory Doghouse • Faced with a compliance MOU and regulatory directive to resolve credit quality deficiencies, the board initiated a CEO search in Q3 2004 • Bob Daugherty hired as President/CEO in September 2004 • Immediate action taken t
Slide 7: Turn Around Story – Chapter (2006) Reinvesting in the Franchise
Turn Around Story – Chapter 2 (2006) Reinvesting in the Franchise • Opened 4 new financial centers in key growth markets and relocated 2 financial centers • Rolled out new concept “end-cap” financial center • <2,000 square feet; per unit investment of $700,000 • Initiated private banking services di
Slide 8: Reinvesting in the Franchise (cont’d)
Reinvesting in the Franchise (cont’d) • Several key technology investments, including • Upgraded ATMs • New teller and new accounts platforms • Remote deposit capture • Opened LPO in South Jordan, Utah (Q3 2006) • Contributed 50% of organic loan growth for 2006 ($50MM) and 70% for Q1 2007 • Loan pri
Slide 9: Spokane/West Plains Financial Center Opened 12/06
Spokane/West Plains Financial Center Opened 12/06
Slide 10: Strategic Expansion Focus - Utah
Strategic Expansion Focus - Utah • Utah has excellent long-term growth prospects and a dynamic economy • Projected population growth well in excess of national averages • Provo MSA expected growth of 24% by 2011 • Flagship financial center to open in the Walker Center Building in the downtown Salt L
Slide 11: Strategic Focus – Utah De Novo Expansion (cont’d)
Strategic Focus – Utah De Novo Expansion (cont’d) • Niche opportunity for a larger service- focused community bank given current competitive composition in Utah banking market: Utah Deposits as of June 30, 2006* Deposits in millions Number of Total Deposits Average Banks Deposits % Deposits National
Slide 12: Walker Center Building, Salt Lake City, Utah
Walker Center Building, Salt Lake City, Utah
Slide 13: Turn Around Story – Chapter (2007) Focus on Performance Improvement
Turn Around Story – Chapter 3 (2007) Focus on Performance Improvement • Completed acquisition of Far West Bancorporation effective April 1 • Far West among the top performing banks in the West • All Utah financial centers operating under Far West Bank brand • Principal focus is now on earnings perfo
Slide 14: Q1 2007 Financial Highlights
Q1 2007 Financial Highlights • Diluted EPS $0.19; $0.21 excluding non-recurring items • Severance, merger costs, OREO gain • Annualized loan growth of 9%; 16% excluding reduction in agricultural loans • $11MM in disengagements from marginal credits • Annualized deposit growth of 16% • Increase in qu
Slide 15: Q1 2007 Financial Highlights (cont’d)
Q1 2007 Financial Highlights (cont’d) • Net interest margin of 4.69%, a decrease of 33 bp from Q4 2006 and a decrease of 46 bp from Q1 2006 • 25 of the 33 bp linked quarter decline due to change in accounting for deferred loan fees for loans with maturities of one year or less
Slide 16: Asset Quality Trends
Asset Quality Trends • Non-performing loan and asset levels at 3/31/07 fell to lowest level in over five years • 0.47% of total loans and assets • Q1 2007 net charge-offs of 15 bp (annualized) • Disengaged from approximately $11MM in marginal agriculture credits during Q1 • Potential problem loans d
Slide 17: Asset Quality Trends
Asset Quality Trends *Excluding government guaranteed amounts ** Allowance for credit losses, which is comprised of the allowance for loan losses and reserve for unfunded commitments. AmericanWest Bancorporation Credit Quality Trends 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 12/31/04 12/31/05 3/31/0
Slide 18: Far West Bank Merger
Far West Bank Merger • Credit administration processes fully integrated and under standard underwriting policies • Regional credit administrator relocated from Spokane to Provo (with significant loan approval authority) • Expect to achieve targeted cost savings of 15% ($2.5MM annual) by end of Q2 20
Slide 19: Far West Bank Merger – Pro Forma 4/30/07
Far West Bank Merger – Pro Forma 4/30/07 AmericanWest Bancorporation Selected Financial Information (unaudited) (in thousands, except per share data) Pro Forma 3/31/2007 4/30/2007 Loans, net 1,231,731 $ 1,605,570 $ Deposits 1,167,148 1,538,165 Shareholders' equity 154,731 280,000 Goodwill and intang
Slide 20: Loan Portfolio Composition – Pro Forma Combined as of March 31, 2007
Loan Portfolio Composition – Pro Forma Combined as of March 31, 2007 Loans by Type Construction/ Land Development 26% Residential Mortgage 8% Multifamily 8% CRE 28% Agriculture 9% Commercial & Industrial 18% Consumer & Other 3% Loans by State Utah 28% Idaho 10% Other 4% Washington 58%
Slide 21: Loan Portfolio – Combined with Far West as of March 31, 2007
Loan Portfolio – Combined with Far West as of March 31, 2007 Commercial Real Estate Owner Occupied 49% Investor 51% Construction/Acquisition & Development Commercial 48% Residential 52%
Slide 22: Loan Repricing Mix - Pro Forma as of March 31, 2007
Loan Repricing Mix - Pro Forma as of March 31, 2007 Repricing Mix 45% 27% 28% 0-3 Month Reset Adj. 6 Months - 5 Years Fixed (WAM 91 Months)
Slide 23: SFAS – A Headache Avoided
SFAS 159 – A Headache Avoided • Did not elect early adoption of SFAS 159 • Minor restructuring of bond portfolio in Q2 2007; no significant gain/loss anticipated • $10MM of trust preferred callable in Q3 2007 • Expect to refinance issuance; current market rates are about 200 bp lower • Issuance cost
Slide 24: 2007 Outlook and Beyond
2007 Outlook and Beyond • NPA/total assets: 50 to 75 bp • Net charge-offs: 25 to 35 bp (annualized) • Organic Loan growth: 12% to 15% • Organic Deposit growth: 8% to 11% • Net interest margin*: 5.15% to 5.35% • Efficiency ratio** (Q4 2007): 60% – 62% • Target ROA/ROE/ROTE (2009):1.30%/12%/18% * For
Slide 25: Summary of Recent M&A Activity
Summary of Recent M&A Activity AmericanWest Bancorporation Recent M&A Activity (in thousands) Date Deal Assets Consideration Target Company Closed Value Acquired Mix Far West Bancorporation 4/1/2007 154,423 $ 488,816 $ 80% stock/20% cash Columbia Trust Bancorp 3/15/2006 39,554 $ 229,972 $ 56% stock/
Slide 26: Thank you
NASDAQ: AWBC awbank.net thank you AmericanWest Bancorporation AmericanWest Bank Building 41 West Riverside, Suite 400 Spokane, Washingon 99201 (509) 232-1536 www.awbank.net/IR Investorinfo@awbank.net
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