AmericanWest's sale to SKBHC approved by bankruptcy court

AmericanWest Bancorporation said a bankruptcy court has approved the $6.5 million sale of its 58-branch network to SKBHC Holdings of California.

The buyer said it expects to complete the acquisition by Dec. 31 and will pump up to $200 million into the bank so regulators can classify it as "well-capitalized."

The Spokane bank holding company runs AmericanWest Bank branches in Eastern Washington and Northern Idaho, as well as Far West Bank branches in Utah. It filed for Chapter 11 protection after announcing the SKBHC deal in October.

SKBHC said it has received all needed regulatory approvals for the acquisition.

Led by former Wells Fargo executive Scott Kisting, SKBHC in October acquired the parent company of tiny First National Bank of Starbuck, in the Minnesota town of the same name.

A Federal Reserve Board announcement at the time said SKBHC "plans to acquire institutions primarily in the Pacific Northwest, West Coast and the Southwest."