Worker productivity rises 4.1 percent

The productivity of American workers, the critical component for rising living standards, increased by 4.1 percent in 2004, capping a remarkable three-year period in which worker efficiency climbed at the fastest pace in a half-century.

However, the Labor Department reported Thursday that productivity for the final three months of the year was up at an annual rate of just 0.8 percent, which was the slowest quarterly increase in almost three years.

The rapid gains in productivity began slowing in the July-September quarter when productivity rose by just 1.8 percent after increases of 3.7 percent in the first quarter and 3.9 percent in the second quarter last year.

On Wall Street, the Dow Jones industrial average dipped 3.69 points to close at 10,593 Thursday as investors worried that the sharp slowdown in productivity gains over the past six months will fuel inflation fears at the Federal Reserve, prompting policy-makers to begin moving rates up faster. There have been six moderate quarter-point increases since June including the latest rate increase Wednesday.

But private analysts said productivity growth, while slowing from the supercharged rates of the past three years, should remain at healthy levels through 2005.

AmericanWest results ‘disappointing’

AmericanWest Bancorp. announced “disappointing” results for the fourth quarter and full year.

The Spokane-based bank said fourth-quarter net income was $700,000, or 7 cents a share, down from income of $3.5 million, or 33 cents a share, in the fourth quarter of 2003.

For the full year, the bank’s net income was $9.5 million, or 91 cents a share, down from $14 million, or $1.34 a share, the previous year.

The bank announced late last year that after reviewing its loan portfolio, it would boost its provision for loan losses and write downs on foreclosed assets. The fourth-quarter results, accordingly, include a $4.5 million provision for loan losses, compared with $2.7 million in the same period of 2003, and $2.8 million in write downs. AmericanWest had expected to take a $7 million loan-loss provision in the fourth quarter, but “positive developments on two large loans and additional information provided on several other loans” made that unnecessary, the bank said in its earnings release.

AmericanWest CEO Robert Daugherty said in the release that the bank’s results “were disappointing, however, we needed to address issues head-on and aggressively.”

The bank also announced it won’t issue a stock dividend this year, which historically it has done on a regular basis, “as a result of a comprehensive review of its capital structure.”

Mountain West reports record earnings in 2004

Coeur d’Alene Mountain West Bank reported record after-tax earnings of $8.28 million in 2004.

The bank’s earnings rose nearly 44 percent from 2003, when Mountain West reported year-end income of $5.85 million.

Mountain West CEO Jon Hippler attributed the increase to strong loan activity and growth in deposits. The bank had a record year for residential loans, writing more than $400 million worth of mortgages. Mountain West also wrote more Small Business Administration loans than any other lender in Idaho.

The bank’s fourth quarter income was $2.43 million, compared with $1.33 million for the fourth quarter of 2003.

Mountain West is a state-chartered commercial bank, with 16 branches.