Shares of AmericanWest Bancorp. of Spokane fell 28% in heavy trading Thursday, to $5.24, after the company reported a first-quarter loss of $31.6 million, or $1.83 a share, largely because of a goodwill impairment charge.
Analysts had expected a per-share profit of 12 cents. In last year's first quarter the $2.1 billion-asset AmericanWest earned $2.2 million, or 19 cents a share.
The company said it wrote off 21% of its goodwill, or $27 million, because of its falling stock value and the declining value of Far West Bancorp in Provo, Utah, which AmericanWest bought in April 2007, and Columbia Trust Bancorp in Pasco, Wash., which it bought in March 2006.
AmericanWest's shares had lost about half their value between the end of June and the end of the first quarter.
Aside from the goodwill charge, AmericanWest lost $4.6 million, or 26 cents a share, primarily because of a $12.8 million loan-loss provision.
Its nonperforming assets rose 20%, to $48.4 million, from the previous quarter, and its ratio of nonperformers to total assets rose 40 basis points, to 2.3%.
"We are continuing to focus on reducing the unacceptably high level of nonperforming loans," president and chief executive Robert M. Daugherty said in a press release. "Unfortunately, the continued deterioration of some real estate market conditions and valuation has resulted in loss severity estimates for some loans that are higher than those expected at yearend 2007. This was reflected in the first quarter's provision and chargeoff levels."
Loans fell slightly from the previous quarter, to $1.7 billion, and deposits fell about 2%, to $1.54 billion. The net interest margin fell 35 basis points, to 4.62%.
