Latest from The Spokesman-Review
AmericanWest Bank plans to buy a Seattle-based bank for $7.2 million in a move that gives the Spokane institution a larger footprint in Western Washington.
Viking Bank has seven branches, assets valued at $406 million and deposits totaling $379 million. The agreement still requires federal regulatory approval, but is expected to close by the end of this year.
AmericanWest has 63 branches in Washington, Idaho, California and Utah. Earlier this year it acquired Bank of the Northwest, which has offices in the Puget Sound region. It also agreed over the summer to buy Sunrise Bank, a Southern California institution.
AmericanWest has about $2 billion in assets and deposits of $1.6 billion.
The financial terms of the deal, characterized as a merger, call for shareholders of Viking to receive $7.2 million in cash, or $2.65 a share.
About 41.7 percent of the bank’s shareholders have agreed to vote all of their shares in favor of the merger, according to a statement issued by AmericanWest Bank on Thursday morning.
Spokane-based Northwest Bancorporation, Inc., the bank holding company for Inland Northwest Bank, today reported a net loss of $249,000 for the second quarter of the year, compared to a profit of $269,000 for the same quarter in 2010.
After accrual of dividends on preferred stock and related adjustments, the net loss for common shareholders was $418,000 compared to a profit of $100,000 a year ago.
This represents a loss of 14 cents per share for the quarter, compared to a gain of 4 cents per share in the second quarter last year.
Randall L. Fewel, President and CEO of the company and the bank, said in a prepared statement, “The road to full recovery from the worst recession in 90 years is indeed a long and bumpy one. As a result of a higher level of charged-off loans, and after an analysis of the adequacy of the loan loss reserve, management decided to expense $1.5 million into the reserve during the second quarter this year compared to $950,000 during the same quarter last year. That difference of $581,000 drove the decline in profitability for the quarter.”
Fewel said on a positive note, total impaired loans decreased $3.7 million, or 10.1 percent, from Dec. 31, 2010, to June 30, dropping from $37.2 million to $33.5 million. Also, foreclosed real estate dropped $634,000, or 16 percent during that six-month period, from $4 million to $3.3 million, he noted.
Sterling Financial Corporation, the bank holding company of Sterling Savings Bank, earned $7.6 million in the second quarter, or 12 cents per share, the Spokane-based company said today.
The net income is compares to $5.4 million, or 9 cents per share, for the first quarter, and a loss of $58.2 million, or $73.91 per share, for the second quarter of 2010.
Loan originations in the second quarter were $883 million, a 41 percent increase over the previous quarter.
Nonperforming assets declined by $131.3 million, or 21 percent, for the quarter.
Greg Seibly, Sterling’s president and CEO, said in a prepared statement, “Sterling’s earnings growth for the quarter was a result of net interest margin expansion and growth of non-interest income. The margin expansion was a function of growth of the loan portfolio and the success of our deposit strategy, which reduced the cost of deposits by 10 basis points for the quarter. The loan growth was a result of higher loan production, which outpaced the significant reduction in nonperforming assets. Our production teams are continuing to generate momentum as we enter the second half of the year.”
Good morning, Netizens…
We can add another piece to this David Horsey cartoon which aptly depicts the bailout of the American economy, as Freddie Mac Acting Chief Financial Officer David Kellermann committed suicide yesterday. If you look somewhere down at the bottom of the cliff over which the dump truck has been dumping our taxpayer dollars, you may see his body there, along with various other dignitaries that have bit the bullet rather than face their ignominy, if not the disgrace of having led us to this place in history.
The real question, which so haunts me, is how much longer will the government, our government, continue tossing good money after bad over the cliff before someone, with the cajones to do so, says, “ENOUGH ALREADY!” and stops the show?
Of course, this begs the question who really runs the economy of this country: the United Auto Workers or the people? I’ve gotten into deep trouble for asking harder questions than that, but it does seem to be a logical and thus important question to me.
Teachers and their union are profoundly underwhelmed by House Bill 2261, which passed the Senate yesterday with much fanfare. Proponents say the bill is a path to the biggest overhaul in school funding in decades — billions of dollars — but Republicans and the Washington Education Association point out the bill includes no money source. Here’s the WEA’s video take on the situation, with a little help from Tom Cruise.