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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549



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FORM 10-Q



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(Mark One)

|x | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|- | ---------------------------------------------------------------------------------------



For the quarterly period ended September 30, 2004



or



| ̈ | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|- | ----------------------------------------------------------------------------------------



For the transition period from  to



Commission File Number 000-18561



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AMERICANWEST BANCORPORATION

(Exact name of registrant as specified in its charter)



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|                                                               |  |                                     
|-------------------------------------------------------------- |  | ------------------------------------
|Washington                                                     |  | 91-1259511                          
|(State or other jurisdiction of incorporation or organization) |  | (I.R.S. Employer Identification No.)



|                                         |  |           
|---------------------------------------- |  | ----------
|9506 North Newport Highway, Spokane, WA  |  | 99218-1200
|(Address of principal executive offices) |  | (Zip Code)



(509) 467-6993

(Registrants telephone number, including area code)



Not Applicable

(Former name, former address and former fiscal year, if changed since last report.)



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Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.    Yes  x    No ̈



Indicate by check mark whether the registrant is an accelerated
filer (as defined in Rule 12b-2 of the Exchange Act).    Yes  x    No ̈



Indicate the number of shares outstanding of
each of the issuers classes of common stock, as of the latest practicable date.



|             |  |                               
|------------ |  | ------------------------------
|Class        |  | Number of Shares Outstanding  
|Common Stock |  | 10,233,676 at October 26, 2004



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##### Table of Contents

AMERICANWEST BANCORPORATION



INDEX TO
QUARTERLY REPORT ON FORM 10-Q



September 30, 2004



Table of Contents



|                             |  |                                                                                               |  |                                                                                                             |  |  
|---------------------------- |  | --------------------------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------- |  | -
|                             |  | Page                                                                                         
|Part I Financial Information |  |                                                                                              
|                             |  |                                                                                              
|                             |  | Item 1. Financial Statements                                                                  |  |                                                                                                            
|                             |  |                                                                                               | 
|                             |  |                                                                                               |  | Condensed Consolidated Statement of Condition as of September 30, 2004 and December 31, 2003                |  | 3
|                             |  |                                                                                               | 
|                             |  |                                                                                               |  | Condensed Consolidated Statements of Income for the Three and Nine Months Ended September 30, 2004 and 2003 |  | 4
|                             |  |                                                                                               | 
|                             |  |                                                                                               |  | Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2004 and 2003       |  | 5
|                             |  |                                                                                               | 
|                             |  |                                                                                               |  | Notes to Condensed Consolidated Financial Statements                                                        |  | 6
|                             |  |                                                                                              
|                             |  | Item 2.
Managements Discussion and Analysis of Financial Condition and Results of Operations |  | 9                                                                                                          
|                             |  |                                                                                              
|                             |  | Item 3.
Quantitative and Qualitative Disclosures About Market Risk                            |  | 16                                                                                                         
|                             |  |                                                                                              
|                             |  | Item 4.
Controls and Procedures                                                               |  | 16                                                                                                         
|                             | 
|Part II Other Information    |  |                                                                                              
|                             |  |                                                                                              
|                             |  | Item 1.
Legal Proceedings                                                                     |  | 17                                                                                                         
|                             |  |                                                                                              
|                             |  | Item 2.
Changes in Securities, Use of Proceeds and Issuer Purchases of Equity Securities      |  | 17                                                                                                         
|                             |  |                                                                                              
|                             |  | Item 3.
Defaults Upon Senior Securities                                                       |  | 17                                                                                                         
|                             |  |                                                                                              
|                             |  | Item 4.
Submission of Matters to a Vote of Security Holders                                   |  | 17                                                                                                         
|                             |  |                                                                                              
|                             |  | Item 5.
Other Information                                                                     |  | 17                                                                                                         
|                             |  |                                                                                              
|                             |  | Item 6.
Exhibits                                                                              |  | 17                                                                                                         
|                             |  |                                                                                              
|                             |  | Signatures                                                                                    |  | 18                                                                                                         



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AMERICANWEST BANCORPORATION



CONDENSED CONSOLIDATED STATEMENT OF CONDITION

(unaudited)

($ in thousands)



|                                                                                                                   |  |                    |           |                   |   |          
|------------------------------------------------------------------------------------------------------------------ |  | ------------------ | --------- | ----------------- | - | ---------
|                                                                                                                   |  | September 30, 2004 |           | December 31, 2003
|ASSETS                                                                                                             |  |                    |           |                   |   |          
|Cash and due from banks                                                                                            |  | $                  | 22,962    |                   | $ | 29,352   
|Overnight interest bearing deposits with other banks                                                               |  |                    | 4,276     |                   |   | 18,943   
|                                                                                                                   |  |                    |           |                   |   |          
|Cash and cash equivalents                                                                                          |  |                    | 27,238    |                   |   | 48,295   
|                                                                                                                   |  |                   
|Securities                                                                                                         |  |                    | 106,035   |                   |   | 40,726   
|                                                                                                                   |  |                   
|Loans, net of allowance for loan losses of $14,978 and $12,453, respectively                                       |  |                    | 937,161   |                   |   | 863,718  
|                                                                                                                   |  |                   
|Accrued interest receivable                                                                                        |  |                    | 8,281     |                   |   | 6,750    
|Premises and equipment, net                                                                                        |  |                    | 23,379    |                   |   | 22,455   
|Foreclosed real estate and other foreclosed assets                                                                 |  |                    | 7,046     |                   |   | 7,408    
|Life insurance and salary continuation assets                                                                      |  |                    | 18,705    |                   |   | 15,643   
|Goodwill                                                                                                           |  |                    | 12,050    |                   |   | 12,050   
|Intangible assets                                                                                                  |  |                    | 2,705     |                   |   | 2,893    
|Other assets                                                                                                       |  |                    | 4,384     |                   |   | 3,969    
|                                                                                                                   |  |                    |           |                   |   |          
|TOTAL ASSETS                                                                                                       |  | $                  | 1,146,984 |                   | $ | 1,023,907
|                                                                                                                   |  |                    |           |                   |   |          
|LIABILITIES                                                                                                        |  |                    |           |                   |   |          
|Noninterest bearing - demand deposits                                                                              |  | $                  | 172,167   |                   | $ | 159,425  
|Interest bearing deposits:                                                                                         |  |                    |           |                   |   |          
|NOW and savings accounts                                                                                           |  |                    | 464,526   |                   |   | 399,726  
|Time, $100,000 and over                                                                                            |  |                    | 117,802   |                   |   | 127,117  
|Other time                                                                                                         |  |                    | 168,385   |                   |   | 184,857  
|                                                                                                                   |  |                    |           |                   |   |          
|TOTAL DEPOSITS                                                                                                     |  |                    | 922,880   |                   |   | 871,125  
|                                                                                                                   |  |                   
|Short-term borrowings                                                                                              |  |                    | 94,925    |                   |   | 27,050   
|Long-term borrowings                                                                                               |  |                    | 6,177     |                   |   | 9,879    
|Capital lease obligations                                                                                          |  |                    | 428       |                   |   | 542      
|Subordinated debentures                                                                                            |  |                    | 10,310    |                   |   | 10,310   
|Accrued interest payable                                                                                           |  |                    | 829       |                   |   | 914      
|Other liabilities                                                                                                  |  |                    | 7,047     |                   |   | 7,889    
|                                                                                                                   |  |                    |           |                   |   |          
|TOTAL LIABILITIES                                                                                                  |  |                    | 1,042,596 |                   |   | 927,709  
|                                                                                                                   |  |                   
|STOCKHOLDERS EQUITY                                                                                               |  |                    |           |                   |   |          
|Common stock, no par, shares authorized 15 million; issued and outstanding 10,232,809 and 10,127,975, respectively |  |                    | 100,328   |                   |   | 78,908   
|Retained earnings                                                                                                  |  |                    | 3,335     |                   |   | 16,817   
|Accumulated other comprehensive income, net of tax                                                                 |  |                    | 725       |                   |   | 473      
|                                                                                                                   |  |                    |           |                   |   |          
|TOTAL STOCKHOLDERS EQUITY                                                                                         |  |                    | 104,388   |                   |   | 96,198   
|                                                                                                                   |  |                    |           |                   |   |          
|TOTAL LIABILITIES AND STOCKHOLDERS EQUITY                                                                         |  | $                  | 1,146,984 |                   | $ | 1,023,907
|                                                                                                                   |  |                    |           |                   |   |          



The accompanying notes
are an integral part of these statements.



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AMERICANWEST BANCORPORATION



CONDENSED CONSOLIDATED STATEMENTS OF INCOME

THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2004 AND 2003

(unaudited)

($ in thousands, except per share
amounts)



|                                            |  |                                 |            |                                 |   |            |  |      |            |  |   |           
|------------------------------------------- |  | ------------------------------- | ---------- | ------------------------------- | - | ---------- |  | ---- | ---------- |  | - | ----------
|                                            |  | Three Months EndedSeptember 30, |            | Nine Months Ended September 30,
|                                            |  | 2004                            |            | 2003                            |   | 2004       |  | 2003
|INTEREST INCOME                             |  |                                 |            |                                 |   |            |  |      |            |  |   |           
|Interest and fees on loans                  |  | $                               | 18,849     |                                 | $ | 17,650     |  | $    | 53,538     |  | $ | 51,060    
|Interest on securities                      |  |                                 | 930        |                                 |   | 488        |  |      | 1,943      |  |   | 1,392     
|Other interest income                       |  |                                 | 10         |                                 |   | 28         |  |      | 57         |  |   | 81        
|                                            |  |                                 |            |                                 |   |            |  |      |            |  |   |           
|TOTAL INTEREST INCOME                       |  |                                 | 19,789     |                                 |   | 18,166     |  |      | 55,538     |  |   | 52,533    
|                                            |  |                                 |            |                                 |   |            |  |      |            |  |   |           
|INTEREST EXPENSE                            |  |                                 |            |                                 |   |            |  |      |            |  |   |           
|Interest on deposits                        |  |                                 | 2,993      |                                 |   | 3,257      |  |      | 8,696      |  |   | 9,914     
|Interest on borrowings                      |  |                                 | 744        |                                 |   | 304        |  |      | 1,469      |  |   | 1,103     
|                                            |  |                                 |            |                                 |   |            |  |      |            |  |   |           
|TOTAL INTEREST EXPENSE                      |  |                                 | 3,737      |                                 |   | 3,561      |  |      | 10,165     |  |   | 11,017    
|                                            |  |                                 |            |                                 |   |            |  |      |            |  |   |           
|NET INTEREST INCOME                         |  |                                 | 16,052     |                                 |   | 14,605     |  |      | 45,373     |  |   | 41,516    
|Provision for loan losses                   |  |                                 | 1,788      |                                 |   | 1,597      |  |      | 8,498      |  |   | 3,583     
|                                            |  |                                 |            |                                 |   |            |  |      |            |  |   |           
|NET INTEREST INCOME AFTER PROVISION         |  |                                 | 14,264     |                                 |   | 13,008     |  |      | 36,875     |  |   | 37,933    
|                                            |  |                                 |            |                                 |   |            |  |      |            |  |   |           
|NONINTEREST INCOME                          |  |                                 |            |                                 |   |            |  |      |            |  |   |           
|Fees and service charges                    |  |                                 | 1,294      |                                 |   | 1,123      |  |      | 3,645      |  |   | 3,109     
|Other                                       |  |                                 | 582        |                                 |   | 500        |  |      | 2,424      |  |   | 1,581     
|                                            |  |                                 |            |                                 |   |            |  |      |            |  |   |           
|TOTAL NONINTEREST INCOME                    |  |                                 | 1,876      |                                 |   | 1,623      |  |      | 6,069      |  |   | 4,690     
|                                            |  |                                 |            |                                 |   |            |  |      |            |  |   |           
|NONINTEREST EXPENSE                         |  |                                 |            |                                 |   |            |  |      |            |  |   |           
|Salaries and employee benefits              |  |                                 | 5,870      |                                 |   | 5,083      |  |      | 17,290     |  |   | 15,026    
|Occupancy expense, net                      |  |                                 | 770        |                                 |   | 597        |  |      | 2,239      |  |   | 1,804     
|Equipment expense                           |  |                                 | 595        |                                 |   | 582        |  |      | 1,900      |  |   | 1,824     
|State business and occupation tax           |  |                                 | 321        |                                 |   | 206        |  |      | 720        |  |   | 611       
|Intangible assets amortization              |  |                                 | 62         |                                 |   | 63         |  |      | 188        |  |   | 188       
|Other                                       |  |                                 | 2,358      |                                 |   | 2,464      |  |      | 7,787      |  |   | 7,014     
|                                            |  |                                 |            |                                 |   |            |  |      |            |  |   |           
|TOTAL NONINTEREST EXPENSE                   |  |                                 | 9,976      |                                 |   | 8,995      |  |      | 30,124     |  |   | 26,467    
|                                            |  |                                 |            |                                 |   |            |  |      |            |  |   |           
|INCOME BEFORE PROVISION FOR INCOME TAX      |  |                                 | 6,164      |                                 |   | 5,636      |  |      | 12,820     |  |   | 16,156    
|                                            |  |                                 |            |                                
|PROVISION FOR INCOME TAXES                  |  |                                 | 2,186      |                                 |   | 1,926      |  |      | 4,037      |  |   | 5,632     
|                                            |  |                                 |            |                                 |   |            |  |      |            |  |   |           
|NET INCOME                                  |  | $                               | 3,978      |                                 | $ | 3,710      |  | $    | 8,783      |  | $ | 10,524    
|                                            |  |                                 |            |                                 |   |            |  |      |            |  |   |           
|Basic earnings per common share             |  | $                               | 0.39       |                                 | $ | 0.37       |  | $    | 0.86       |  | $ | 1.05      
|Diluted earnings per common share           |  | $                               | 0.38       |                                 | $ | 0.35       |  | $    | 0.84       |  | $ | 1.00      
|Basic weighted average shares outstanding   |  |                                 | 10,191,775 |                                 |   | 10,057,546 |  |      | 10,177,990 |  |   | 10,051,121
|Diluted weighted average shares outstanding |  |                                 | 10,438,276 |                                 |   | 10,534,171 |  |      | 10,477,819 |  |   | 10,473,991



The accompanying notes
are an integral part of these statements.



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AMERICANWEST BANCORPORATION



CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

NINE MONTHS ENDED SEPTEMBER 30, 2004 AND 2003

(unaudited)

($ in thousands)



|                                                                                                  |  |      |          |   |      |   |         |  
|------------------------------------------------------------------------------------------------- |  | ---- | -------- | - | ---- | - | ------- | -
|                                                                                                  |  | 2004 |          |   | 2003 |  
|CASH FLOWS FROM OPERATING ACTIVITIES                                                              |  |      |          |   |      |   |         |  
|Net Income                                                                                        |  | $    | 8,783    |   |      | $ | 10,524  |  
|Adjustments to reconcile net income to net cash provided by operating activities:                 |  |      |          |   |      |   |         |  
|Provision for loan losses                                                                         |  |      | 8,498    |   |      |   | 3,583   |  
|Depreciation and amortization                                                                     |  |      | 1,758    |   |      |   | 2,142   |  
|Gain on disposal of branch                                                                        |  |      | (618     | ) |      |   |        |  
|Compensation expense for stock options issued                                                     |  |      | 50       |   |      |   |        |  
|Loss on sale of fixed assets                                                                      |  |      | 5        |   |      |   |        |  
|Changes in assets and liabilities:                                                                |  |      |          |   |      |   |         |  
|Accrued interest receivable                                                                       |  |      | (1,531   | ) |      |   | (1,679  | )
|Life insurance and salary continuation assets                                                     |  |      | (1,062   | ) |      |   | (546    | )
|Other assets                                                                                      |  |      | (161     | ) |      |   | 581     |  
|Accrued interest payable                                                                          |  |      | (69      | ) |      |   | (218    | )
|Other liabilities                                                                                 |  |      | (1,266   | ) |      |   | 1,391   |  
|                                                                                                  |  |      |          |   |      |   |         |  
|NET CASH FROM OPERATING ACTIVITIES                                                                |  |      | 14,387   |   |      |   | 15,778  |  
|                                                                                                  |  |      |          |   |      |   |         |  
|CASH FLOWS FROM INVESTING ACTIVITIES                                                              |  |      |          |   |      |   |         |  
|Securities available-for-sale:                                                                    |  |      |          |   |      |   |         |  
|Maturities, sales and principal payments                                                          |  |      | 14,514   |   |      |   | 17,431  |  
|Purchases                                                                                         |  |      | (79,477  | ) |      |   | (10,377 | )
|Net increase in loans and leases                                                                  |  |      | (77,100  | ) |      |   | (71,929 | )
|Purchase of life insurance contracts                                                              |  |      | (2,000   | ) |      |   | (3,000  | )
|Purchases of premises and equipment                                                               |  |      | (2,588   | ) |      |   | (2,757  | )
|Proceeds from sale of premises and equipment                                                      |  |      | 76       |   |      |   |        |  
|Foreclosed assets activity                                                                        |  |      | (4,521   | ) |      |   | 1,296   |  
|                                                                                                  |  |      |          |   |      |   |         |  
|NET CASH FROM INVESTING ACTIVITIES                                                                |  |      | (151,096 | ) |      |   | (69,336 | )
|                                                                                                  |  |      |          |   |      |   |         |  
|CASH FLOWS FROM FINANCING ACTIVITIES                                                              |  |      |          |   |      |   |         |  
|Net increase in deposits                                                                          |  |      | 66,867   |   |      |   | 108,274 |  
|Borrowings activity                                                                               |  |      | 64,173   |   |      |   | (43,148 | )
|Principal payments on capital lease obligations                                                   |  |      | (35      | ) |      |   | (34     | )
|Proceeds from issuance of capital stock, exercise of stock options and employee incentive program |  |      | 1,957    |   |      |   | 1,878   |  
|Cash payments for stock repurchases                                                               |  |      | (2,852   | ) |      |   | (1,100  | )
|Cash payments for sale of branch                                                                  |  |      | (14,458  | ) |      |   |        |  
|                                                                                                  |  |      |          |   |      |   |         |  
|NET CASH FROM FINANCING ACTIVITIES                                                                |  |      | 115,652  |   |      |   | 65,870  |  
|                                                                                                  |  |      |          |   |      |   |         |  
|NET CHANGE IN CASH AND CASH EQUIVALENTS                                                           |  |      | (21,057  | ) |      |   | 12,312  |  
|                                                                                                  |  |     
|Cash and cash equivalents, beginning of period                                                    |  |      | 48,295   |   |      |   | 38,925  |  
|                                                                                                  |  |      |          |   |      |   |         |  
|Cash and cash equivalents, end of period                                                          |  | $    | 27,238   |   |      | $ | 51,237  |  
|                                                                                                  |  |      |          |   |      |   |         |  
|Supplemental Disclosures:                                                                         |  |      |          |   |      |   |         |  
|Cash paid during the period for:                                                                  |  |      |          |   |      |   |         |  
|Interest                                                                                          |  | $    | 10,250   |   |      | $ | 11,235  |  
|Income taxes                                                                                      |  | $    | 4,441    |   |      | $ | 5,000   |  
|                                                                                                  |  |     
|Noncash Investing and Financing Activities:                                                       |  |      |          |   |      |   |         |  
|Foreclosed real estate acquired in settlement of loans                                            |  | $    | 4,883    |   |      | $ | 3,216   |  



The accompanying notes
are an integral part of these statements.



5



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##### Table of Contents

AMERICANWEST BANCORPORATION



NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS



NOTE 1. Basis of
Presentation



The foregoing unaudited interim consolidated financial
statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the
Securities and Exchange Commission. Accordingly, these financial statements do not include all of the disclosures required by accounting principles generally accepted in the United States of America for complete financial statements. These unaudited
interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2003. In the opinion of management, the unaudited interim consolidated financial statements
furnished herein include all adjustments, all of which are of a normal recurring nature, necessary for a fair statement of the results for the interim periods presented.



The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires
the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of
revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of AmericanWest Bancorporations (AWBC) consolidated financial statements; accordingly, it is
possible that the actual results could differ from these estimates and assumptions, which could have a material effect on the reported amounts of AWBCs consolidated financial position and results of operations.



Employee stock options are accounted for under the intrinsic value method as allowed under
Accounting Principles Board Opinion (APB) No. 25, Accounting for Stock Issued to Employees. Stock options are generally granted at exercise prices not less than the fair market value of common stock on the date of grant. Under APB No. 25, no
compensation expense is recognized pursuant to AWBCs stock option plans for stock options that are granted at exercise prices not less than the fair market value of common stock on the date of grant. The following table sets out the pro forma
amounts of net income and earnings per share that would have been reported had it elected to follow the fair value recognition provisions of Statement of Financial Accounting Standards Board No. 123, Accounting for Stock-Based Compensation,
as amended.



|                                                                                                                           |  |                    |            |                   |                   |   |                   |  |   |                    |   |  |   |           |  
|-------------------------------------------------------------------------------------------------------------------------- |  | ------------------ | ---------- | ----------------- | ----------------- | - | ----------------- |  | - | ------------------ | - |  | - | --------- | -
|                                                                                                                           |  | Three Months Ended |            | Nine Months Ended |                  
|($ in thousands, except per share)                                                                                         |  | September 30,2004  |            |                   | September 30,2003 |   | September 30,2004 |  |   | September 30, 2003 |  
|Reported Net Income                                                                                                        |  | $                  | 3,978      |                   |                   | $ | 3,710             |  | $ | 8,783              |   |  | $ | 10,524    |  
|Add: Stock-based compensation expense reported in net income, net of tax                                                   |  |                    | 33         |                   |                   |   |                  |  |   | 33                 |   |  |   |          |  
|Deduct: Total stock-based compensation expense determined under fair value based method for all awards, net of tax effects |  |                    | (115       | )                 |                   |   |                  |  |   | (524               | ) |  |   | (242      | )
|                                                                                                                           |  |                    |            |                   |                   |   |                   |  |   |                    |   |  |   |           |  
|Pro forma Net Income                                                                                                       |  | $                  | 3,896      |                   |                   | $ | 3,710             |  | $ | 8,292              |   |  | $ | 10,282    |  
|                                                                                                                           |  |                    |            |                   |                   |   |                   |  |   |                    |   |  |   |           |  
|Basic Earnings Per Share                                                                                                   |  |                    |            |                   |                   |   |                   |  |   |                    |   |  |   |           |  
|Reported Earnings Per Share                                                                                                |  | $                  | 0.39       |                   |                   | $ | 0.37              |  | $ | 0.86               |   |  | $ | 1.05      |  
|Stock-based employee compensation, fair value                                                                              |  |                    | (0.01      | )                 |                   |   |                  |  |   | (0.05              | ) |  |   | (0.03     | )
|                                                                                                                           |  |                    |            |                   |                   |   |                   |  |   |                    |   |  |   |           |  
|Pro forma Earnings Per Share                                                                                               |  | $                  | 0.38       |                   |                   | $ | 0.37              |  | $ | 0.81               |   |  | $ | 1.02      |  
|                                                                                                                           |  |                    |            |                   |                   |   |                   |  |   |                    |   |  |   |           |  
|Diluted Earnings Per Share                                                                                                 |  |                    |            |                   |                   |   |                   |  |   |                    |   |  |   |           |  
|Reported Diluted Earnings Per Share                                                                                        |  | $                  | 0.38       |                   |                   | $ | 0.35              |  | $ | 0.84               |   |  | $ | 1.00      |  
|Stock-based employee compensation, fair value                                                                              |  |                    | (0.01      | )                 |                   |   |                  |  |   | (0.05              | ) |  |   | (0.02     | )
|                                                                                                                           |  |                    |            |                   |                   |   |                   |  |   |                    |   |  |   |           |  
|Pro forma Diluted Earnings Per Share                                                                                       |  | $                  | 0.37       |                   |                   | $ | 0.35              |  | $ | 0.79               |   |  | $ | 0.98      |  
|                                                                                                                           |  |                    |            |                   |                   |   |                   |  |   |                    |   |  |   |           |  
|Fair Value Assumptions:                                                                                                    |  |                    |            |                   |                   |   |                   |  |   |                    |   |  |   |           |  
|Risk free interest rate                                                                                                    |  |                    | 4.14       | %                 |                   |   |                  |  |   | 4.06               | % |  |   | 4.36      | %
|Expected volatility                                                                                                        |  |                    | 25.27      | %                 |                   |   |                  |  |   | 24.94              | % |  |   | 26.27     | %
|Expected cash dividends                                                                                                    |  |                    | 0          | %                 |                   |   |                  |  |   | 0                  | % |  |   | 0         | %
|Expected stock option life                                                                                                 |  |                    | 10.0 years |                   |                   |   |                  |  |   | 8.0 years          |   |  |   | 7.0 years |  



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AMERICANWEST BANCORPORATION



NOTE 2. Consolidation of Subsidiaries



On March 19, 2003, AWBC consolidated its two commercial banking subsidiaries, AmericanWest Bank and Bank of Latah into a single commercial bank, AmericanWest Bank. The
AmericanWest Bank charter is the surviving charter.



NOTE 3. Securities



All of the securities are classified as available-for-sale and are
carried at market value. Unrealized gains and losses, net of tax, are excluded from earnings and reported as a net amount as a separate component of stockholders equity. Gains or losses on the sale of available-for-sale securities are
determined using the specific identification method. Premiums and discounts are recognized in interest income using the effective interest method over the period to maturity. Carrying amounts and fair values at September 30, 2004 and December 31,
2003 were as follows:



|                                                                 |  |                    |         |                   |   |               |  |            |        |  |   |       
|---------------------------------------------------------------- |  | ------------------ | ------- | ----------------- | - | ------------- |  | ---------- | ------ |  | - | ------
|                                                                 |  | September 30, 2004 |         | December 31, 2003
|($ in thousands)                                                 |  | AmortizedCost      |         | Fair Value        |   | AmortizedCost |  | Fair Value
|US. Treasury Securities                                          |  | $                  | 500     |                   | $ | 514           |  | $          | 501    |  | $ | 535   
|Obligations of Federal Government Agencies                       |  |                    | 4,147   |                   |   | 4,145         |  |            | 4,056  |  |   | 4,073 
|Obligations of states, municipalities and political subdivisions |  |                    | 9,242   |                   |   | 9,451         |  |            | 8,879  |  |   | 9,085 
|Mortgage backed securities                                       |  |                    | 10,489  |                   |   | 10,503        |  |            | 5,331  |  |   | 5,252 
|Corporate securities                                             |  |                    | 73,509  |                   |   | 74,368        |  |            | 16,148 |  |   | 16,817
|Other securities                                                 |  |                    | 7,037   |                   |   | 7,054         |  |            | 5,084  |  |   | 4,964 
|                                                                 |  |                    |         |                   |   |               |  |            |        |  |   |       
|TOTAL                                                            |  | $                  | 104,924 |                   | $ | 106,035       |  | $          | 39,999 |  | $ | 40,726
|                                                                 |  |                    |         |                   |   |               |  |            |        |  |   |       



NOTE 4. Loans and Allowance for
Loan Losses



Loan detail by category as of September 30, 2004 and December
31, 2003 were as follows:



|                                          |  |                    |         |   |                   |   |         |  
|----------------------------------------- |  | ------------------ | ------- | - | ----------------- | - | ------- | -
|($ in thousands)                          |  | September 30, 2004 |         |   | December 31, 2003 |  
|Commercial real estate                    |  | $                  | 503,891 |   |                   | $ | 461,538 |  
|Commercial and industrial                 |  |                    | 204,039 |   |                   |   | 183,618 |  
|Agricultural                              |  |                    | 133,757 |   |                   |   | 124,395 |  
|Real estate construction                  |  |                    | 42,328  |   |                   |   | 32,236  |  
|Real estate mortgage                      |  |                    | 35,211  |   |                   |   | 38,075  |  
|Installment                               |  |                    | 23,988  |   |                   |   | 26,850  |  
|Bank cards and other                      |  |                    | 9,082   |   |                   |   | 9,678   |  
|                                          |  |                    |         |   |                   |   |         |  
|Total Loans                               |  | $                  | 952,296 |   |                   | $ | 876,390 |  
|                                          |  |                    |         |   |                   |   |         |  
|Allowance for loan losses                 |  |                    | (14,978 | ) |                   |   | (12,453 | )
|Deferred loan fees, net of deferred costs |  |                    | (157    | ) |                   |   | (219    | )
|                                          |  |                    |         |   |                   |   |         |  
|Net Loans                                 |  | $                  | 937,161 |   |                   | $ | 863,718 |  
|                                          |  |                    |         |   |                   |   |         |  



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The allowance for loan loss is maintained at levels considered adequate by management to provide for possible loan losses. The allowance is
based on managements assessment of various factors affecting the loan portfolio, including problem loans, business conditions and loss experience, and an overall evaluation of the quality of the underlying collateral. Changes in the allowance
for loan losses during the three and nine months ended September 30, 2004 and 2003 were as follows:



|                             |  |                                 |        |   |                                |   |        |      |  |   |        |   |  |   |        |  
|---------------------------- |  | ------------------------------- | ------ | - | ------------------------------ | - | ------ | ---- |  | - | ------ | - |  | - | ------ | -
|                             |  | Three Months EndedSeptember 30, |        |   | Nine Months EndedSeptember 30, |  
|($ in thousands)             |  | 2004                            |        |   | 2003                           |   |        | 2004 |  |   | 2003   |  
|Balance, beginning of period |  | $                               | 14,011 |   |                                | $ | 11,599 |      |  | $ | 12,453 |   |  | $ | 10,272 |  
|Provision for loan losses    |  |                                 | 1,788  |   |                                |   | 1,597  |      |  |   | 8,498  |   |  |   | 3,583  |  
|Loan charge-offs             |  |                                 | (983   | ) |                                |   | (1,386 | )    |  |   | (6,726 | ) |  |   | (2,204 | )
|Loan recoveries              |  |                                 | 162    |   |                                |   | 31     |      |  |   | 753    |   |  |   | 190    |  
|                             |  |                                 |        |   |                                |   |        |      |  |   |        |   |  |   |        |  
|Balance, end of period       |  | $                               | 14,978 |   |                                | $ | 11,841 |      |  | $ | 14,978 |   |  | $ | 11,841 |  
|                             |  |                                 |        |   |                                |   |        |      |  |   |        |   |  |   |        |  



NOTE 5. Comprehensive Income



Total comprehensive income, which includes net income and unrealized
gains and losses on the Corporations available-for-sale securities, amounted to approximately $9.0 million and approximately $3.3 million for the nine months ended September 30, 2004 and 2003, respectively.



NOTE 6. Common Stock



In January of 2004 and 2003, the Board of Directors declared 10% common stock dividends. AWBC recorded a transfer from retained earnings to
common stock for the market value of the additional shares on the date issued. Per share amounts and weighted average shares outstanding have been retroactively adjusted to reflect the stock dividends.



NOTE 7. Earnings Per Share



The following is a reconciliation of the numerators and denominators for basic and diluted
per share computations for net income for the three and six months ended September 30:



|                                                     |  |                                  |            |                                 |   |            |  |      |            |  |   |           
|---------------------------------------------------- |  | -------------------------------- | ---------- | ------------------------------- | - | ---------- |  | ---- | ---------- |  | - | ----------
|                                                     |  | Three Months Ended September 30, |            | Nine Months Ended September 30,
|($ in thousands, except per share)                   |  | 2004                             |            | 2003                            |   | 2004       |  | 2003
|Numerator:                                           |  |                                  |            |                                 |   |            |  |      |            |  |   |           
|Net income                                           |  | $                                | 3,978      |                                 | $ | 3,710      |  | $    | 8,783      |  | $ | 10,524    
|                                                     |  |                                  |            |                                
|Denominator:                                         |  |                                  |            |                                 |   |            |  |      |            |  |   |           
|Weighted average number of common shares outstanding |  |                                  | 10,191,775 |                                 |   | 10,057,546 |  |      | 10,177,990 |  |   | 10,051,121
|Incremental shares assumed for stock options         |  |                                  | 246,501    |                                 |   | 476,625    |  |      | 299,829    |  |   | 422,870   
|                                                     |  |                                  |            |                                 |   |            |  |      |            |  |   |           
|Total                                                |  |                                  | 10,438,276 |                                 |   | 10,534,171 |  |      | 10,477,819 |  |   | 10,473,991
|                                                     |  |                                  |            |                                 |   |            |  |      |            |  |   |           



NOTE 8. Sale of Branch



On June 4, 2004, AWBC sold a branch to another bank. The branch was
located in Ione, Washington and consisted of approximately $15.1 million deposits. AWBC recorded a gain of approximately $618,000 related to this sale which is included in noninterest income for the nine months ended September 30, 2004. Operating
results reflect activity in this branch up to the date of sale.



NOTE 9.
Accounting Pronouncements



In December 2003, the FASB issued revised
Interpretation No. 46, Consolidation of Variable Interest Entities (VIE), as amended and interpreted. It defined a VIE as a corporation, partnership, trust, or any other legal structure used for the business purpose that either does not have equity
investors with voting rights or has equity investors that do not provide sufficient financial resources for the entity to support its activities. This interpretation requires a VIE to be consolidated or deconsolidated by a corporation generally
based on the risk of loss or return. AWBC has a VIE in the form of a Trust set up to issue subordinated debentures and accordingly, the implementation of the Interpretation required the deconsolidation of the Trust. AWBC adopted the Interpretation
retroactively. AWBCs investment in the Trust is not consolidated and is accounted for under the equity method and included in other assets on the Condensed Consolidated Statement of Condition. The subordinated debentures issued and guaranteed
by the Corporation and held by the trust are reflected on the Corporations Condensed Consolidated Statement of Condition.



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Item 2: Managements Discussion and Analysis of Financial Condition and Results of Operations



Forward-Looking Statements



Certain matters discussed or incorporated by reference in this Quarterly Report on Form 10-Q including, but not limited to, matters described in Item 2
Managements Discussion and Analysis of Financial Condition and Results of Operations, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA), including statements about the
business strategy, financial condition, results of operations, future financial targets and earnings outlook of the Corporation. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ
materially from those projected. Those factors include, but are not limited to, impact of the current national and regional economy on small business loan demand in the Corporations market, loan delinquency rates, changes in portfolio
composition, the banks ability to attract quality commercial business, interest rate movements and the impact on margins such movement may cause, changes in the demographic make-up of the Corporations market, fluctuation in demand for
the Corporations products and services, the Corporations ability to attract and retain qualified people, regulatory changes, competition with other banks and financial institutions, and other factors. For a discussion of factors that
could cause actual results to differ, please see the Corporations reports on Forms 10-K and 10-Q as filed with the Securities and Exchange Commission. Words such as targets, expects, anticipates,
believes, other similar expressions or future or conditional verbs such as will, may, should, would, and could are intended to identify such forward-looking statements. Readers
should not place undue reliance on the forward-looking statements, which reflect managements view only as of the date hereto. The Corporation undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent
events or circumstances. This statement is included for the express purpose of protecting the Corporation under PSLRAs safe harbor provisions.



The following discussion contains a review of the results of operations and financial condition for the three and nine months ended September 30, 2004 and 2003. This
information should be read in conjunction with the financial statements and related notes appearing in this report. The reader is assumed to have access to AWBCs Form 10-K for the year ended December 31, 2003, which contains additional
information.



AmericanWest Bancorporation



AmericanWest Bancorporation (AWBC or Corporation) is a bank holding company registered under
the Bank Holding Company Act of 1956, as amended. The Corporation conducts business through its wholly-owned subsidiary, AmericanWest Bank (AWB) a state-chartered, FDIC-insured commercial bank organized under the laws of the State of Washington. The
Corporations main office is located in Spokane, Washington.



AmericanWest
Capital Trust I (Trust), a subsidiary of AWBC, was formed in September 2002 for the exclusive purpose of issuing trust preferred securities and common securities and using the $10.0 million in proceeds from the issuance to acquire junior
subordinated debentures issued by AWBC. Upon the adoption of amended FIN 46, the investment in the Trust is no longer consolidated on the Condensed Consolidated Financial Statements.



AmericanWest Bank



AWB provides a full range of banking services to small and medium-sized businesses, agricultural businesses, professionals, and consumers through 44 offices located in
Eastern Washington and Northern Idaho.



The principal sources of the AWBs
revenue are 1) interest and fees on loans, 2) fees for deposit accounts and related services, 3) interest on investments and 4) interest bearing deposits with other banks. AWBs lending activities consist of term and operating loans to
businesses and agricultural businesses, real estate construction and development loans, vehicle and equipment loans for both businesses and consumers, and real estate mortgage loans. AWB also offers a full line of deposit account products and
related services.



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AMERICANWEST BANCORPORATION



Performance Overview



The table below summarizes the Corporations financial performance for the three and nine months ending September 30, 2004 and 2003:



|                                                    |  |                                  |        |      |                                 |          |  |      |      |  |      |        |          |   |        |  |       |  
|--------------------------------------------------- |  | -------------------------------- | ------ | ---- | ------------------------------- | -------- |  | ---- | ---- |  | ---- | ------ | -------- | - | ------ |  | ----- | -
|                                                    |  | Three Months Ended September 30, |        |      | Nine Months Ended September 30, |         
|($ in thousands except per share data)              |  | 2004                             |        | 2003 |                                 | % Change |  |      | 2004 |  | 2003 |        | % Change |  
|Interest Income                                     |  | $                                | 19,789 |      | $                               | 18,166   |  | 8.9  | %    |  | $    | 55,538 |          | $ | 52,533 |  | 5.7   | %
|Interest Expense                                    |  |                                  | 3,737  |      |                                 | 3,561    |  | 4.9  | %    |  |      | 10,165 |          |   | 11,017 |  | -7.7  | %
|                                                    |  |                                  |        |      |                                 |          |  |      |      |  |      |        |          |   |        |  |       |  
|Net Interest Income                                 |  |                                  | 16,052 |      |                                 | 14,605   |  | 9.9  | %    |  |      | 45,373 |          |   | 41,516 |  | 9.3   | %
|                                                    |  |                                  |        |      |                                 |          |  |      |      |  |      |        |          |   |        |  |       |  
|Provision for Loan Loss                             |  |                                  | 1,788  |      |                                 | 1,597    |  | 12.0 | %    |  |      | 8,498  |          |   | 3,583  |  | 137.2 | %
|Net interest income after provision for loan losses |  |                                  | 14,264 |      |                                 | 13,008   |  | 9.7  | %    |  |      | 36,875 |          |   | 37,933 |  | -2.8  | %
|                                                    |  |                                  |        |      |                                 |          |  |      |      |  |      |        |          |   |        |  |       |  
|Noninterest Income                                  |  |                                  | 1,876  |      |                                 | 1,623    |  | 15.6 | %    |  |      | 6,069  |          |   | 4,690  |  | 29.4  | %
|Noninterest Expense                                 |  |                                  | 9,976  |      |                                 | 8,995    |  | 10.9 | %    |  |      | 30,124 |          |   | 26,467 |  | 13.8  | %
|                                                    |  |                                  |        |      |                                 |          |  |      |      |  |      |        |          |   |        |  |       |  
|Income before Taxes                                 |  |                                  | 6,164  |      |                                 | 5,636    |  | 9.4  | %    |  |      | 12,820 |          |   | 16,156 |  | -20.6 | %
|                                                    |  |                                  |        |      |                                 |          |  |      |      |  |      |        |          |   |        |  |       |  
|Income Tax Expense                                  |  |                                  | 2,186  |      |                                 | 1,926    |  | 13.5 | %    |  |      | 4,037  |          |   | 5,632  |  | -28.3 | %
|                                                    |  |                                  |        |      |                                 |          |  |      |      |  |      |        |          |   |        |  |       |  
|Net Income                                          |  | $                                | 3,978  |      | $                               | 3,710    |  | 7.2  | %    |  | $    | 8,783  |          | $ | 10,524 |  | -16.5 | %
|                                                    |  |                                  |        |      |                                 |          |  |      |      |  |      |        |          |   |        |  |       |  
|Basic earnings per common share                     |  | $                                | 0.39   |      | $                               | 0.37     |  |      |      |  | $    | 0.86   |          | $ | 1.05   |  |       |  
|Diluted earnings per common share                   |  | $                                | 0.38   |      | $                               | 0.35     |  |      |      |  | $    | 0.84   |          | $ | 1.00   |  |       |  



Net Income



The Corporation reported net income of approximately $4.0 million or $0.38 per fully diluted
share for the three months ended September 30, 2004 compared to approximately $3.7 million and $0.35 for the same period in 2003. The Corporation reported net income of approximately $8.8 million or $0.84 per fully diluted share for the nine months
ended September 30, 2004 compared to approximately $10.5 million and $1.00 for the same period in 2003. Return on average assets for the nine months ending September 30, 2004 and 2003 was 1.10% and 1.51%, respectively. The return on average equity
for the nine months ended September 30, 2004 and 2003 was 11.70% and 16.29%, respectively.



During the nine months ended September 30, 2004 the Corporation recorded a $4.0 million, pre-tax, additional loan loss provision which AWBC originally announced on May 20, 2004 and a gain on the divestiture of a
single branch in the amount of $618 thousand, pre-tax, which was included in results reported for the six months ended June 30, 2004. On a pro forma basis without these two events, the net income for the nine months ended September 30, 2004 was
$11.0 million. Diluted earnings per share, on a pro forma basis, were $1.05 for the nine months ended September 30, 2004. The following is a table to reconcile the pro forma net income and GAAP income:



|                                              |  |                                     |        |  
|--------------------------------------------- |  | ----------------------------------- | ------ | -
|                                              |  | Nine months endedSeptember 30, 2004 |       
|Net income as reported                        |  | $                                   | 8,783  |  
|Add: Loan loss provision for one relationship |  |                                     | 4,000  |  
|Less: Gain on divesture of branch             |  |                                     | (618   | )
|Less: Tax impact of above items               |  |                                     | (1,184 | )
|                                              |  |                                     |        |  
|Pro forma net income                          |  | $                                   | 10,981 |  
|                                              |  |                                     |        |  



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AMERICANWEST BANCORPORATION



Net Interest Income



Net interest income was approximately $16.1 million for the three months ended September 30, 2004, an increase from approximately $14.6 million for the like period in
2003. Net interest income was approximately $45.4 million for the first nine months of 2004 compared to $41.5 million during the first nine months of 2003. The increase in net interest income for both time periods was largely due to increases in the
level of average earning assets, and a decrease in the cost of deposits. These were partially offset by decreases in interest and fees earned on loans and securities. There was a decrease in net interest margin to 6.22% for the period ended
September 30, 2004 compared to 6.43% for the like period last year. This decrease was due to a decrease on loan yields, changes in the mix of earning assets and mix of interest costing liabilities which were offset partially by an increase in
investment yields and decreases in deposit and borrowing costs.



The following
table sets forth the Corporations net interest margin for the year to date ending September 30, 2004 and 2003:



|                                              |  |         |           |          |   |        |      |      |         |  |          |         |   |   |        |  |      |  
|--------------------------------------------- |  | ------- | --------- | -------- | - | ------ | ---- | ---- | ------- |  | -------- | ------- | - | - | ------ |  | ---- | -
|                                              |  | 2004    |           |          |   |        | 2003 |      |         | 
|                                              |  | Average |           | Interest |   | %      |      |      | Average |  | Interest |         | % |  
|Loans                                         |  | $       | 903,669   |          | $ | 48,069 |      | 7.09 | %       |  | $        | 810,494 |   | $ | 44,564 |  | 7.35 | %
|Loan fees                                     |  |         |           |          |   | 5,469  |      | 0.81 | %       |  |          |         |   |   | 6,496  |  | 1.07 | %
|Investments                                   |  |         | 68,727    |          |   | 2,000  |      | 3.88 | %       |  |          | 52,243  |   |   | 1,473  |  | 3.77 | %
|                                              |  |         |           |          |   |        |      |      |         |  |          |         |   |   |        |  |      |  
|Total earning assets                          |  |         | 972,396   |          |   | 55,538 |      | 7.61 | %       |  |          | 862,737 |   |   | 52,533 |  | 8.14 | %
|                                              |  |         |           |          |   |        |      |      |         |  |          |         |   |   |        |  |      |  
|Other assets                                  |  |         | 95,691    |          |   |        |      |      |         |  |          | 70,466  |   |   |        |  |      |  
|                                              |  |         |           |          |   |        |      |      |         |  |          |         |   |   |        |  |      |  
|Total assets                                  |  | $       | 1,068,087 |          | $ | 55,538 |      |      |         |  | $        | 933,203 |   | $ | 52,533 |  |      |  
|                                              |  |         |           |          |   |        |      |      |         |  |          |         |   |   |        |  |      |  
|Interest-bearing deposits                     |  | $       | 721,660   |          | $ | 8,696  |      | 1.61 | %       |  | $        | 657,145 |   | $ | 9,914  |  | 2.02 | %
|Borrowings                                    |  |         | 83,928    |          |   | 1,469  |      | 2.33 | %       |  |          | 45,594  |   |   | 1,103  |  | 3.23 | %
|                                              |  |         |           |          |   |        |      |      |         |  |          |         |   |   |        |  |      |  
|Total interest-bearing liabilities            |  |         | 805,588   |          |   | 10,165 |      | 1.68 | %       |  |          | 702,739 |   |   | 11,017 |  | 2.10 | %
|                                              |  |         |           |          |   |        |      |      |         |  |          |         |   |   |        |  |      |  
|Noninterest bearing deposits                  |  |         | 154,884   |          |   |        |      |      |         |  |          | 136,189 |   |   |        |  |      |  
|Other liabilities                             |  |         | 7,555     |          |   |        |      |      |         |  |          | 7,895   |   |   |        |  |      |  
|                                              |  |         |           |          |   |        |      |      |         |  |          |         |   |   |        |  |      |  
|Total liabilities                             |  |         | 968,027   |          |   | 10,165 |      |      |         |  |          | 846,823 |   |   | 11,017 |  |      |  
|                                              |  |         |           |          |   |        |      |      |         |  |          |         |   |   |        |  |      |  
|Equity                                        |  |         | 100,060   |          |   |        |      |      |         |  |          | 86,380  |   |   |        |  |      |  
|                                              |  |         |           |          |   |        |      |      |         |  |          |         |   |   |        |  |      |  
|Total liabilities and capital                 |  | $       | 1,068,087 |          | $ | 10,165 |      |      |         |  | $        | 933,203 |   | $ | 11,017 |  |      |  
|                                              |  |         |           |          |   |        |      |      |         |  |          |         |   |   |        |  |      |  
|Net interest income                           |  |         |           |          | $ | 45,373 |      |      |         |  |          |         |   | $ | 41,516 |  |      |  
|Net interest margin to average earning assets |  |         |           |          |   |        |      | 6.22 | %       |  |          |         |   |   |        |  | 6.43 | %



The above table includes non-accrual
loans in the average loan balance. In accordance with AWBCs accounting policies, the interest on these loans is not included in interest income.



Provision for Loan Losses



Provision for loan losses increased to approximately $1.8 million in the third quarter, compared to approximately $1.6 million in the third quarter of 2003, and provision
for loan losses increased to $8.5 million for the nine months ended September 30, 2004 compared to $3.6 million for the nine months ended September 30, 2003. The provision for the nine months ended September 30, 2004 included an additional provision
of $4.0 million for a single relationship. AWBC announced this provision on May 20, 2004. Provisions are made to reserve for known and inherent risk characteristics within the loan portfolio. The increase was due to continued internal growth of the
loan portfolio and managements continual assessment of specific loan characteristics. AWBC and its subsidiary regularly evaluate the level of provision and the allowance for loan losses for adequacy by considering changes in the nature of the
loan portfolio, overall portfolio, overall portfolio quality, industry concentrations, delinquency trends, current economic factors and estimated impact of current economic conditions that may affect a borrowers ability to pay. Management
continually monitors the economic conditions of the Corporations market, which includes Eastern Washington and Northern Idaho and includes this information in the analysis of its Provision for Loan Losses. In addition, management includes
general economic conditions for its analysis. The use of different estimates or assumptions could produce different provision for loan loss. In addition, the allowance for loan losses and the provision for loan losses are subject to regulatory
supervision and examination.



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AMERICANWEST BANCORPORATION



Noninterest Income



Noninterest income for the three and nine months ended September 30, 2004 was approximately $1.9 million and $6.1 million, respectively. This represented an increase from
approximately $1.6 million and $4.7 million for the like period in 2003. Fees and service charges increased during the three months ended September 30, 2004 to approximately $1.3 million from approximately $1.1 million in 2003. The fees and services
charges increased during the nine months ended September 30, 2004 to approximately $3.6 million from approximately $3.1 million in 2003. The increases in these areas are primarily due to an increase in the number of transaction related deposit
accounts and an increase in activity related to those accounts. Additionally, the Corporation raised the majority of its service fees related to deposit accounts in the three months ended September 30, 2004 to reflect changes in overall market
conditions and comparable costs for these types of fees. Other income increased by approximately $0.8 million for the nine months ended September 30 due to the gain on the sale of a branch of approximately $0.6 million which was recorded in 2004,
and increases in the cash value of life insurance policies and gains on sale of real estate owned.



Noninterest Expense



Noninterest
expense increased to approximately $10.0 million for the three months ended September 30, 2004 from approximately $9.0 million in the comparable quarter of 2003. The noninterest expense for the nine months ended September 30, 2004 increased to
approximately $30.1 million compared to $26.5 million in 2003. This increase is due mainly to increases in salaries and employee benefits and foreclosed real estate and other foreclosed asset expenses. The salaries and employee benefits costs for
the three and nine months ended September 30, 2004 have increased approximately $0.8 million and $2.3 million, respectively, as compared to the prior year. This increase is due to incentive compensation, additional staffing, and increased healthcare
costs. The foreclosed real estate and other foreclosed asset expenses have increased approximately $0.8 million for the nine months ended September 30, 2004 from the prior year.



Income Tax Expense



Income tax expense has decreased as a percentage of income before income taxes for the nine month period ended September 30, 2004 to 31.5% compared to 34.9% in 2003.
There were two buildings placed into service during the first quarter in which AWBC had purchased historical rehabilitation tax credits. The Corporation has recognized these tax credits during the nine months ended September 30, 2004 causing the
effective tax rate to decrease. Without the effect of the historical rehabilitation tax credits, the effective tax rate for the nine months ended September 30, 2004 would have been 35.9%.



Nonperforming Assets



Nonperforming assets include loans that are 90 or more days past due or in non-accrual status and real estate and other loan collateral acquired through foreclosure.
Total nonperforming assets were approximately $23.7 million or 2.07% of total assets at September 30, 2004. This compares to approximately $19.9 million or 1.95% of assets at December 31, 2003. The majority of nonperforming assets are comprised of
several loans and properties.



The Corporation has acquired title to an ice
skating complex in Spokane in foreclosed real estate and other foreclosed assets. It is carried at $1.7 million and is being operated as an ice skating rink. The asset is being carried at estimated market value and is being marketed as an operating
facility.



The Corporation has acquired title to a retail/office complex in
Spokane that totals $3.2 million in foreclosed real estate and other foreclosed assets. The Corporation has a pending offer from a buyer for an amount in excess of the asset amount, pending certain contingencies. Contingencies include environmental
due diligence which is ongoing. If the offer is not accepted or sale does not occur, the property will be listed with a real estate professional, and marketed as a retail/office facility.



The Corporation has a restaurant/entertainment facility in foreclosed real estate and other foreclosed assets totaling $1.0 million. The
facility is located on lease ground for which the Corporation has assumed a long-term lease. The facility is being marketed as a restaurant/entertainment facility.



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AMERICANWEST BANCORPORATION



Management has recognized $5.2 million in loans to a wine grape vineyard and winery as non-accruing due to continuing operating losses and
inadequate cash flow to service debt. The entities continue to operate, and the Corporation is evaluating collateral coverage at this time.



Management has recognized a $3.0 million loan to a manufacturer of motor homes as non-accruing due to a maturity of the credit line and an exit strategy by the
Corporation. Evaluation of collateral coverage is ongoing, and it is believed that the collateral provides adequate coverage at this time.



Management has recognized a $0.9 million loan to an Ethanol production plant as non-accruing due to a bankruptcy filing and uncertainty regarding the collection of
principal and interest. The loan is a purchased participation and represents 12% of the total obligation of the borrower. The borrower resumed payments in March of 2004, and has made monthly payments since under approval of the bankruptcy court.
Sale of the property is being sought by the trustee.



At period end, a lodging
property loan in the amount of $1.8 million was in excess of 90 days past maturity date, and was believed to be well secured and in the process of collection. Subsequent to period end, the Corporation learned that the borrowing entity would not
execute renewal documents, and the loan has been placed on non-accruing status. The Corporation is evaluating collateral coverage, and it is believed that the loan remains well secured.



Financial Condition



The Corporations consolidated assets at September 30, 2004 and December 31, 2003 were approximately $1.1 billion and $1.0 billion, respectively. Cash and cash
equivalents decreased to approximately $27.2 million at September 30, 2004 from $48.3 million at December 31, 2003. Securities have increased to approximately $106.0 million at September 30, 2004 from $40.7 million at December 31, 2003.



Deposits increased to approximately $922.9 million at September 30, 2004 compared to
approximately $871.1 million at December 31, 2003. Short-term and long-term borrowings increased by approximately $64.2 million to approximately $101.1 million from approximately $36.9 million at December 31, 2003. Included in these effects is the
sale of the Ione Branch which consisted of approximately $15.1 million in deposits.



Total stockholders equity was approximately $104.4 million at September 30, 2004, up from approximately $96.2 million at December 31, 2003. The increase in stockholders equity was mostly due to net income and exercises of stock
options which were partially offset by stock repurchases.



Investment
Portfolio



The Corporations investment portfolio increased from
approximately $40.7 million at December 31, 2003 to approximately $106.0 million at September 30, 2004. This increase was due to purchases and increases in market values of certain securities which were partially offset by security payments,
maturities, sales and decreases in the market values of certain securities. The majority of the increase was related to purchases of certain collateralized bond obligations that are collateralized by Trust Preferred securities issued by financial
institutions and insurance companies. The securities generally are adjustable rate on a quarterly basis. These securities were funded using Federal Home Loan Bank advances. The major classifications of investments as of September 30, 2004 and
December 31, 2003 can be found in the Notes to Condensed Consolidated Financial Statements. All securities are classified as available-forsale. Management believes that this classification provides greater flexibility to respond to interest
rate changes and liquidity needs.



Loan Portfolio



The major classifications of loans at September 30, 2004 and December 31, 2003 can be found
in the Notes to Condensed Consolidated Financial Statements.



Total gross loans
were approximately $952.3 million as of September 30, 2004 compared to approximately $876.4 million at December 31, 2003. This increase was due to increases in commercial real estate loans, commercial and industrial loans, agricultural loans and
real estate construction loans. The increases in agricultural loans and real estate construction loans were related to seasonal demand and new activity. The increases in commercial and industrial loans and commercial real estate loans were related
to increases from existing customers and the addition of new customers. Decreases in real estate mortgage loans, installment loans and bankcards and other were related to periodic payments and maturities, which were offset by new lending activity.



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Allowance for Loan Losses



At September 30, 2004, the Corporations allowance for loan losses was approximately $15.0 million or 1.57% of total gross loans. This compares to approximately
$12.5 million or 1.42% at December 31, 2003. The allowance for loan losses is increased by charges to income through the provision for loan losses and decreased by charge-offs, net of recoveries. Loans are charged to the allowance when management
believes the collection of principal is unlikely.



The increase was related to
provision for loan losses of approximately $8.5 million, which included an additional provision related to a single borrower relationship of $4.0 million which the Corporation disclosed on May 20, 2004. The provision for loan losses was offset by
charge-offs of $6.7 million, comprised of the $4.0 million charge off related to the provision listed above, a $0.6 million charge off on a loan relationship with a light manufacturer and a $0.7 million charge off related to a loan relationship with
a technology entity. The Corporation recognized $0.8 million in recoveries which included a single recovery of $0.5 million related to a single borrowing relationship.



In assessing the adequacy of the allowance for loan losses, management utilizes an analysis of credits for objectively analyzing recent
historical loan loss experience and projecting future allowance requirements. The analysis provides an inherent loss rate by risk ratings. Each category of risk rating is assigned a projected loss value based upon general historic valuations and
current management expectations for future losses. Additionally, management utilizes an analysis of impaired loans, determining the collateral coverage of loans to assess the adequacy of the allowance. Management also compares projected future
allowance requirements with current nonperforming loan conditions and historical loss statistics. Finally, management utilizes judgment based on individual loan evaluations, delay in receipt of customer financial information, related credit
facilities, volatility of economic and customer specific conditions or concentrations, and delinquency rates in assessing allowance for loan losses.



The majority of the Corporations loans are to small and medium-sized businesses, agricultural businesses, professionals and consumers in Eastern Washington and
Northern Idaho and are secured by residential and commercial real estate, crops and business inventory and receivables. Real estate values in this area remain stable. Prices for agricultural commodities also remain at normal levels. However,
significant, long-term changes in either of these underlying factors could affect the collectability of a material portion of the Corporations loans outstanding. Each of these factors is also considered in the analysis of assessing the
adequacy of the allowance for loan losses.



Management believes that the
allowances for loan losses and other real estate owned are adequate. While management uses currently available information to recognize losses on loans and foreclosed real estate, future additions to the allowances may be necessary based on changes
in economic conditions, borrower or loan characteristics. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Corporations allowance for loan losses and foreclosed real estate.
Such agencies may require the Corporation to recognize additions to the allowance based on their judgments of information available to them at the time of their examination.



Deposits



The Corporations primary source of funds is customer deposits. To attract and retain deposits, the Corporation offers a wide variety of account types and
maturities, both interest bearing and noninterest bearing. Many account types have additional services bundled with them, such as insurance, travel discounts, free checks and free or discounted access to other bank services. Interest rates on
accounts are determined by management based on the Corporations funding needs and market conditions and can change as frequently as daily.



At September 30, 2004, total deposits were approximately $922.9 million, a increase of approximately $51.8 million from $871.1 million at December 31, 2003. NOW and
savings accounts, which include money market accounts, increased approximately $64.8 million to $464.5 million at September 30, 2004 from $399.7 million at December 31, 2003 and the Corporation experienced a decrease of approximately $25.8 million
in time deposits to $286.2 million at September 30, 2004 from $312.0 million December 31, 2003. Noninterest bearing deposits increased $12.7 million to $172.2 million from $159.4 million at December 31, 2003. The balances for September 30, 2004
reflect the sale of the Ione branch deposits in the amount of $15.1 million.



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AMERICANWEST BANCORPORATION



In recent years, competition from non-bank investment alternatives has increased competition for retail deposits. In light of this and other
factors and to further diversify its funding sources, the Corporation has expanded its use of time deposits from public entities and from credit unions and community banks. At September 30, 2004, these accounts totaled approximately $200.0 million
or approximately 21.7% of total deposits. At December 31, 2003, these deposits totaled approximately $188.8 million or approximately 21.6% of total deposits.



Liquidity and Capital Resources



Management actively analyzes and manages the Corporations liquidity position. The objective of liquidity management is to ensure the availability of sufficient cash
flows to meet all financial commitments and to capitalize on opportunities for profitable business expansion. Management believes that the Corporations cash flow will be sufficient to support its existing operations for the foreseeable future.



Cash flows from operations contribute significantly to liquidity as well as
proceeds from maturities of securities and increasing customer deposits. As indicated on the Corporations Condensed Consolidated Statement of Cash Flows, net cash from operating activities for the nine months ended September 30, 2004
contributed approximately $14.4 million to liquidity compared to approximately $15.8 million for the nine months ended September 30, 2003.



At September 30, 2004, the Corporation held cash and due from banks and interest bearing deposits with banks of approximately $27.2 million compared to approximately
$48.3 million at December 31, 2003. In addition, approximately $106.0 million of the Corporations investments were classified as available-for-sale at September 30, 2004 as compared to approximately $40.7 million at December 31, 2003.



In addition to the strategy noted for deposits above, the Corporation uses
short-term and long-term borrowings, principally in the form of advances from the Federal Home Loan Bank of Seattle, as a source of funding. With maturities ranging from overnight to 30 years, these advances are used to provide a ready source of
liquidity for the operations and are a tool the Corporation uses to manage its interest rate risk.



At September 30, 2004, short-term and long-term borrowings stood at approximately $94.9 million and $6.2 million, respectively. These balances represented an increase of approximately $67.9 million in short-term
borrowings and a decrease of approximately $3.7 million in long-term borrowings in comparison to December 31, 2003, which were $27.1 million and $9.9 million respectively. As of September 30, 2004 and December 31, 2003, AWBC had lines of credit
available of approximately $145.0 million and $163.3, respectively. The lines were available for short-term and long-term maturities up to 30 years at market interest rates.



As a federally-regulated bank holding corporation, the Corporation is required to maintain minimum levels of capital at all times at both
AWBC and AWB. Bank regulatory agencies have promulgated regulations that measure the Corporations capital in three ways. Tier one capital, currently comprised of stockholders equity and trust preferred securities, is measured against
assets both on a book basis and on a risk-weighted basis according to standardized risk categories for specific types of assets. In addition, tier one capital is adjusted for certain other items, most prominently the allowance for loan losses and
certain intangibles, to arrive at defined total regulatory capital. This amount is then measured against risk-weighted assets.



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AMERICANWEST BANCORPORATION



The table below lists AWB and AWBCs capital ratios relative to regulatory requirements at September 30, 2004:



|                                         |  |                                                 |   |  |                 |   |  |                |  
|---------------------------------------- |  | ----------------------------------------------- | - |  | --------------- | - |  | -------------- | -
|Capital Ratio                            |  | RegulatoryStandard for WellCapitalized Rating |   |  | AWBCActualRatio |   |  | AWBActualRatio |  
|Tier One Capital to Average Total Assets |  | 5.00                                            | % |  | 8.83            | % |  | 8.75           | %
|Tier One Capital to Risk Weighted Assets |  | 6.00                                            | % |  | 9.33            | % |  | 9.25           | %
|Total Capital to Risk Weighted Assets    |  | 10.00                                           | % |  | 10.59           | % |  | 10.51          | %



Item 3. Quantitative and Qualitative Disclosures About Market Risk.



Management considers interest rate risk to be a market risk that could have a significant effect on the financial condition of AWBC. In managements opinion, there have been no material changes in reported market
risks faced by AWBC since the end of the most recent fiscal year.



Item 4. Controls and Procedures.



(a) Evaluation
of Disclosure Controls and Procedures: As of the end of the period covered by this report and pursuant to Rule 13a-15 of the Securities Exchange Act of 1934 (the Exchange Act), AWBCs management, including the Chief Executive
Officer and Chief Financial Officer, conducted an evaluation of the effectiveness and design of the Corporations disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act). Based upon that
evaluation, the Chief Executive Officer and Chief Financial Officer concluded, as of the end of the period covered by this report, that the Corporations disclosure controls and procedures were effective in recording, processing, summarizing
and reporting information required to be disclosed by the Corporation, within the time periods specified in the Securities and Exchange Commissions rules and forms.



(b) Changes in Internal Controls: In addition and as of the end of the period covered by this report, there have been no changes in internal
control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) of the Exchange Act) during the quarter to which this report relates that have materially affected or are reasonably likely to materially affect, the internal control over
financial reporting.



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AMERICANWEST BANCORPORATION



Part II. Other Information



Item 1. Legal Proceedings



Periodically and in the
ordinary course of business, various claims and lawsuits are brought against AWBC or AWB, such as claims to enforce liens, condemnation proceedings on properties in which the Bank held a security interest, claims involving the making and servicing
of real property loans and other issues incident to the business of AWBC and AWB. In the opinion of management, the ultimate liability, if any, resulting from such claims or lawsuits will not have a material adverse effect on the financial position
or results of operations of AWBC.



Item 2. Changes in Securities, Use of Proceeds and Issuer Purchases of Equity Securities



The following table summarizes purchases of the Corporations securities registered pursuant to section 12 of the Securities Exchange Act of 1934, made by or on
behalf of the Corporation and any affiliated purchaser in the three months ended September 30, 2004:



ISSUER PURCHASES OF EQUITY SECURITIES



|                                 |  |                                |  |                             |       |                                                                  |        |                                                       |        
|-------------------------------- |  | ------------------------------ |  | --------------------------- | ----- | ---------------------------------------------------------------- | ------ | ----------------------------------------------------- | -------
|Period                           |  | Total Number ofSharesPurchased |  | Average PricePaid per Share |       | Total Number ofShares Purchasedas Part of PubliclyAnnounced Plan |        | Maximum Numberthat May Yet BePurchased Underthe Plan1
|July 1 - July 31, 2004           |  | 21,492                         |  | $                           | 18.92 |                                                                  | 21,492 |                                                       | 116,265
|August 1 - August 31, 2004       |  | 39,134                         |  |                             | 17.92 |                                                                  | 39,134 |                                                       | 77,131 
|September 1 - September 30, 2004 |  | 7,251                          |  |                             | 18.21 |                                                                  | 7,251  |                                                       | 69,880 
|                                 |  |                                |  |                             |       |                                                                  |        |                                                       |        
|Total                            |  | 67,877                         |  | $                           | 18.22 |                                                                  | 67,877 |                                                       | 69,880 
|                                 |  |                                |  |                             |       |                                                                  |        |                                                       |        

---

|1 | The plan was publicly announced in September of 2001 with 739,841 shares approved to be repurchased.
|- | ----------------------------------------------------------------------------------------------------



Item 3. Defaults Upon Senior Securities



Not
applicable.



Item 4. Submission of Matters to a Vote of Security Holders



No items were submitted to a vote during the period covered by this report.



Item 5. Other Information



Not applicable.



Item 6. Exhibits



The exhibits
filed as part of this report and exhibits incorporated herein by reference to other documents are listed in the Index to Exhibits to this Quarterly Report on Form 10-Q, including executive compensation plans and arrangements which are identified
separately by asterisk:



|      |  |                                                                                                                                                      
|----- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------
|      | 
|10.14 |  | Employment Agreement dated as of September 20, 2004, between AmericanWest Bancorporation, AmericanWest Bank, and Robert M. Daugherty.*               
|      | 
|31.1  |  | Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                               
|      | 
|31.2  |  | Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                               
|      | 
|32.1  |  | Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|      | 
|32.2  |  | Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

---

|* | Denotes executive compensation plan or arrangement.
|- | ---------------------------------------------------



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AMERICANWEST BANCORPORATION



Signatures



Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized on October 28, 2004.



AMERICANWEST BANCORPORATION\s\ Robert M. DaughertyRobert M. Daugherty, President andChief Executive Officer\s\ C. Tim CasselsC. Tim Cassels, Executive Vice President andChief Financial Officer




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INDEX TO EXHIBITS



|            |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|----------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                                          
|3.1         |  | Amended & Restated Articles of Incorporation of registrant are incorporated herein by reference to Exhibit 3.1 to the registrants quarterly report on Form 10-Q for the period ended
June 30, 2004.                                                                                                                                                                                                                                                 
|            | 
|3.2         |  | Amended and Restated Bylaws of registrant are incorporated herein by reference to Exhibit 3.2 to the registrants quarterly report on Form 10-Q for the period ended June 30,
2004.                                                                                                                                                                                                                                                                  
|            | 
|10.1        |  | Agreement and Plan of Mergers dated March 28, 2002, by and among AmericanWest Bancorporation, AmericanWest Bank, Latah Bancorporation, Inc. and Bank of Latah is incorporated herein by
reference to Exhibit 2 of the registrants statement on Form S-4 (File No. 333-87838).                                                                                                                                                                       
|            | 
|10.2        |  | Latah Bancorporation, Inc. 1999 Employee Incentive Stock Option Plan is incorporated by reference to Exhibit 99.1 to the registrants statement on Form S-8 (File No. 333-101040) filed
November 6, 2002.*                                                                                                                                                                                                                                           
|            | 
|10.3        |  | Latah Bancorporation, Inc. 1999 Non-Qualified Stock Option Plan is incorporated by reference to Exhibit 99.2 to the registrants statement on Form S-8 (File No. 333-101040) filed
November 6, 2002.*                                                                                                                                                                                                                                                
|            | 
|10.4        |  | Placement Agreement dated as of September 18, 2002, between AmericanWest Bancorporation and AmericanWest Statutory Trust I, as Officers, and FTN Financial Capital Markets and Keefe, Bruyette
& Woods, Inc., as Placement Agents, for the issuance of Floating Rate Capital Securities to Preferred Term Securities VII, Ltd. is incorporated by reference to the registrants annual report on Form 10-K (File No. 000-18561) filed March 26,
2003.
|            | 
|10.5        |  | Indenture dated as of September 26, 2003, between AmericanWest Bancorporation, as Issuer, and State Street Bank and Trust Company of Connecticut, National Association, as Trustee, for the
issuance of Floating Rate Junior Subordinated Deferrable Interest Debentures due 2032 is incorporated by reference to the registrants annual report on Form 10-K (File No. 000-18561) filed March 26, 2003.                                             
|            | 
|10.6        |  | Form of AmericanWest Bancorporation Floating Rate Junior Subordinated Deferrable Interest Debentures is incorporated by reference to the registrants annual report on Form 10-K (File No.
000-18561) filed March 26, 2003.                                                                                                                                                                                                                          
|            | 
|10.7        |  | Form of AmericanWest Statutory Trust I Floating Rate Capital Securities is incorporated herein by reference to the registrants annual report on Form 10-K (File No. 000-18561) filed
March 26, 2003.                                                                                                                                                                                                                                                
|            | 
|10.8        |  | Form of AmericanWest Statutory Trust I Floating Rate Common Securities is incorporated by reference to the registrants annual report on Form 10-K (File No. 000-18561) filed March 26,
2003.                                                                                                                                                                                                                                                        
|            | 
|10.9        |  | Amended and Restated Declaration of Trust dated as of September 26, 2002, between AmericanWest Bancorporation, as Sponsor; Wesley E. Colley, Wade Griffith and John L. Gilbert, as
Administrators; and State Street Bank and Trust Company of Connecticut National Association, as Institutional Trustee, is incorporated by reference to the registrants annual report on Form 10-K (File No. 000-18561) filed March 26,
2003.                     
|            | 
|10.10       |  | Guarantee Agreement dated as of September 26, 2002, between AmericanWest Bancorporation, as Guarantor, and State Street Bank and Trust Company of Connecticut National Association, as
Guarantee Trustee, is incorporated by reference to the registrants annual report on Form 10-K (File No. 000-18561) filed March 26, 2003.                                                                                                                     



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|             |  |                                                                                                                                                                                                                                                                                                                                 
|------------ |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No.  |  | Description                                                                                                                                                                                                                                                                                                                     
|10.11        |  | Subscription Agreement dated as of September 26, 2002, between AmericanWest Bancorporation and AmericanWest Statutory Trust I, as Officers, and Preferred Term Securities VII, Ltd., as
Purchaser, is incorporated by reference to the registrants annual report on Form 10-K (File No. 000-18561) filed March 26, 2003.       
|             | 
|10.12        |  | AmericanWest Bancorporation 2001 Incentive Stock Plan is incorporated by reference to Exhibit 99.1 to the registrants registration statement on Form S-8 (File No.
333-65628).*                                                                                                                                                
|             | 
|10.13  10.14 |  | AmericanWest Bancorporation 2001 Employee Stock Purchase Plan is incorporated by reference to Exhibit 99.1 to the registrants registration
statement on Form S-8 (File No. 333-65630).*  Employment Agreement dated as of
September 20, 2004, between AmericanWest Bancorporation, AmericanWest Bank, and Robert M. Daugherty.*
|             | 
|31.1         |  | Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                         
|             | 
|31.2         |  | Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                         
|             | 
|32.1         |  | Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                          
|             | 
|32.2         |  | Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                          

---

|* | Denotes executive compensation plan or arrangement.
|- | ---------------------------------------------------