726990--3/31/2009--AMERICANWEST

related topics

{loan, real, estate}

{acquisition, growth, future}

{condition, economic, financial}

{regulation, change, law}

{competitive, industry, competition}

{capital, credit, financial}

{loss, insurance, financial}

{cost, operation, labor}

{control, financial, internal}

{regulation, government, change}

{debt, indebtedness, cash}

{personnel, key, retain}

{stock, price, share}

The Company may not be able to continue to operate as a going concern The Company is required to raise additional capital, but that capital may not be available. The Company s liquidity could be impaired by an inability to access the capital markets or an unforeseen outflow of cash. The Company may be subject to additional regulatory enforcement action that could place significant restrictions on the Company s operations. The Company has a significant concentration in real estate loans and a prolonged recession or further downturn in the economy of the markets served or the real estate market specifically could significantly harm its business and prospects for growth. A substantial amount of the Company s real property collateral is located in Central and Eastern Washington and Utah and a further downturn in the real estate markets or prolonged recessionary climate could harm the Company s business. The greater Salt Lake City area and Utah economies each have grown rapidly during the past several years, and the failure of these economies to sustain such growth in the future could affect the Company s ability to grow. The Company has not been through a variety of business cycles since it began operations in Utah and, as a result, may not effectively evaluate the future prospects and this lack of operating history may increase the risk that the Company will not continue to be successful. The Company s business is subject to interest rate risk, and variations in interest rates may harm financial performance. The allowance for credit losses may not be adequate to cover actual losses. Construction and land development lending involves special risks not associated with other types of lending. The Company faces strong competition from financial services companies and other companies that offer banking services, which could harm business. Changes in economic conditions, in particular an economic slowdown in the Company s market area, could harm business. If the Bank is unable to pay the holding company cash dividends to meet its cash obligations, the business, financial condition, results of operations and prospects will be adversely affected. The Company s common stock may no longer qualify for listing on the NASDAQ Global Select Market. Difficult market conditions have adversely affected the financial services industry. Conditions in the financial markets may limit the Company s access to additional funding to meet liquidity needs. The Bank s wholesale funding sources may prove insufficient to replace deposits at maturity and Federal and state governments could pass legislation responsive to current credit conditions. Changes in accounting standards may impact how the Company reports its financial condition and results of operations. The value of securities in the investment securities portfolio may be negatively affected by continued disruptions in securities markets. The Bank s investment in Federal Home Loan Bank of Seattle (FHLB) stock may become impaired. There can be no assurance that recently enacted legislation authorizing the U.S. government to inject capital into financial institutions and purchase assets from financial institutions will help stabilize the U.S. financial system. Supervisory guidance on commercial real estate concentrations could restrict the Company s activities and impose financial requirements or limitations on the conduct of our business. The Company is dependent on key personnel and the loss of one or more of those key personnel may harm prospects. The Company may not grow to an asset size to support the existing infrastructure. The Company is subject to extensive regulation. The Company is exposed to risk of environmental and other liabilities with respect to properties to which it takes title. The Company may not be successful achieving anticipated cost savings from the new business model or consolidations of financial centers.

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726990--3/31/2009--AMERICANWEST_BANCORPORATION