A New Beginning

January 14, 2010

Visions of the proverbial crystal ball slowly gracing its way downward in Times Square along with the sounds of fireworks emanating from our own Northwest icon, the Space Needle, ushers in a new year full of promise and great expectations. What an opportunity for a new beginning, leaving the struggles of the past year behind, to focus on the possibilities ahead.

Here at First Savings Bank Northwest, 2009 was the most challenging year we have ever faced. Our history goes back to1923, and in that time we have experienced several wars, a severe depression, global terrorist activity, the ups and downs of various economic cycles, and now the greatest housing crisis in history. Throughout all of these challenges we have remained a resilient community bank; continuing to provide an environment of financial safety and personalized service. Although the challenges experienced were great, we emerged stronger, more confident and better equipped to face the opportunities of the future. The lessons of the past serve as a guiding principle establishing the cornerstone of future success.

As you are aware, so many financial institutions nationally and locally, including ourselves, have been struggling under the weight of nonperforming loans, specifically related to construction financing. During the economic growth of the past decade, the financing of new construction was not only profitable but also contributed to our mission of providing affordable housing within the communities we serve. The events of the past two years highlighted that our commitment for this activity should have been measured; a lesson which will be embedded within our corporate culture in all that we do. As in past lessons, this too will serve in making us a better organization, having an additional emphasis on balanced growth.  

To position us for what we believe will be a promising year filled with unknown opportunities and expectations, we have developed a special assets group whose focus is on prompt and efficient management of our troubled loans. A change that will allow us to move beyond the challenges of the past and into the opportunities of the future. With our strong liquidity position and a capital level which is well in excess of the regulatory requirement for being “well capitalized” we are committed to our goal of restoring earnings, minimizing troubled loans and maintaining a quality personal service image.

Your expressed confidence in us during this recessionary time has greatly contributed to our ability in weathering recognized losses, impaired loans and increased provisions. It is the collective support from each of you that caused us to grow in deposits, quality loans and solid core earnings. For this we express our sincere thanks and assure you that First Savings Bank Northwest will exit this economic cycle remaining that financial institution which you have been proud of for generations.

Happy New Year! May it be filled with all your dreams and desires. Once again, thank you for being a part of our extended family of loyal supporters