AmericanWest Bank lost about $156 million in 2008, and saw loan volume fall but deposits tick upward slightly, while its total assets declined by 10 percent, say year-end financial documents it has filed with the Federal Deposit Insurance Corp.

The Spokane-based institution hasn't yet released fourth-quarter and full-year earnings, saying it plans to do so within the next few weeks. However, data it was required to submit to the FDIC by the end of January for what's known informally as a call report show that the $134.7 million year-to-date loss it reported at the end of the third quarter swelled by more than $21 million over the last three months of the year.

The $156 million loss compares with net income of $11.4 million in 2007 and $9.4 million in 2006. The lion's share of the loss—$109 million—resulted from two goodwill-impairment charges, one for $27 million recognized in the first quarter and the other for $82 million taken in the third quarter. Such charges reflect the reduced fair market value of intangible assets carried on a company's balance sheet.

The FDIC data show that AmericanWest's net loans fell nearly 9 percent last year, to $1.6 billion as of Dec. 31 from $1.75 billion a year earlier, though its deposits grew 2.6 percent to $1.57 billion from $1.53 billion. Meanwhile, in line with a recovery strategy aimed at trimming the bank's asset base to improve operating ratios, its total assets fell to $1.9 billion at the end of last year from $2.11 billion a year earlier.

AmericanWest spokeswoman Kelly McPhee says it's important to note that the bank still is finalizing the preparation and audit review of its consolidated financial statements, which could result in some adjustments to the call report figures.

In brief written performance-related comments relayed by McPhee, Patrick J. Rusnak, president and CEO of the bank and its holding company, AmericanWest Bancorp, said, "We continue actively lending in the communities we serve; as an example, our residential lending has had two-record setting months. We funded over $35 million in residential first-mortgage loans in January—our biggest month ever—and $20 million in December. In fact, we're currently processing about four times our typical volume of applications and in January alone that represented 717 applications."

AmericanWest had posted the biggest share of its 2008 loss—$96.9 million—in the third quarter and simultaneously announced plans to close branches on the West Plains, in the Qualchan area, and in Latah, Oakesdale, and Kennewick, Wash., plus an in-store branch in St. Maries, Idaho.

In an interview in November shortly after the company released its third-quarter earnings, Rusnak said he expected it to reduce its overall work force by up to 10 percent and to secure private equity funding, regardless of any federal bailout money it might receive, as part of a broad effort to get back on stronger financial footing.

He said he hoped to secure the needed capital by around the end of last year and to reap roughly $6 million in annual savings by streamlining bank operations. As part of that cost-cutting effort, it closed six of its 64 branches on Jan. 30, but—nearly two months past his stated target date—it has yet to announce any private equity agreement or to say whether it still hopes to receive any federal funds through the U.S. Treasury Department's Troubled Asset Relief Program, or TARP. It had submitted an application in November for about $57 million in TARP money.

In additional written comments forwarded last week by McPhee, Rusnak said, "We're continuing our efforts to raise private capital, and progress has been made in recent weeks despite the very challenging capital markets conditions." He added, though, that providing any details prematurely about those negotiations "could seriously jeopardize our ability to achieve our objectives."

Rusnak had said in November that it was possible a private equity investor might co-invest in the bank with the Treasury Department.

Despite the bank's financial difficulties, he said, "I am entirely confident we can get through this. We certainly have our challenges. It's not easy sledding, but it's fixable, and we can emerge a better company."

He also acknowledged, though, that AmericanWest was continuing to explore a range of options that included possibly selling some branches or being acquired by or merging with another bank.

Rusnak said the bulk of the bank's problems stemmed from its exposure to residential construction and development loans, mostly in Utah, where the real estate market crashed after an extended hot stretch. AmericanWest's share price has fallen from more than $20 two years ago to less than 50 cents last week.