Mountain West Bank, of Coeur d'Alene, has announced earnings of $9.07 million for 2008, down 35.6 percent from its profits in 2007.

For the fourth quarter, the bank posted earnings of $2.14 million, down $1.3 million from the fourth quarter of 2007.

Assets were $1.23 billion as of Dec. 31, up by 18.1 percent, or $188 million, from a year earlier, Mountain West says. The bank had $971 million in loans at the end of 2008, up 14.7 percent for the year, while average deposits and retail repurchase agreements were $695 million, down less than 1 percent from a year earlier. The bank said its total risk-based capital ratio was 11.88 percent at year-end, well above the 10 percent regulatory requirement for being well capitalized. Risk-based capital is total assets, including loans as weighted for risk, minus exemptions such as cash, divided by so-called tier one capital, or capital less goodwill.

"In the most difficult operating environment since World War II, we are very pleased to produce these earnings and balance sheet growth while maintaining our strong capital position," Mountain West CEO Jon Hippler said.

The bank made a provision for loan losses of just under $11.2 million in 2008, adding that amount of money to funds it has set aside for credit problems. It said it did that primarily to provide for loan growth and increases in nonperforming assets mostly related to construction, land, and land development. Nonperforming assets include loans on which borrowers are delinquent for 90 days or more or on which the bank is no longer accruing interest, as well as real estate and equipment on which the bank has foreclosed.

Mountain West, an Idaho state-chartered commercial bank, has 24 branches in Idaho, Washington, and Utah and is owned by Glacier Bancorp Holding Co., of Kalispell, Mont.