Welcome to the bulletin board. Stay up to date on the latest happenings within the First Savings Community.
02/03/12
Slip Sliding Away...
Oh, the joys of winter! Snow falling and ice forming on roads caused those who ventured out to experience the racetrack to nowhere, as engines roared and tires spun but no traction was to be gained. It was with sheer determination that I approached the little hill that could keep me from home during the ice storm, but no matter how many times I tried to charge up its face, the results were the same – lots of spinning but no upward direction. Finally, as I eased off the gas pedal and took a slow but steady course, the obstacle became manageable and up the hill I went…well, halfway anyway and, as the car came to rest against the curb, I altered my plan and walked the rest of the way.
So has it been with our financial performance over the past couple of years. In 2010 we found ourselves slipping and sliding under the weight of non-performing loans but, with some management changes and the irritant of charge offs; as the year came to a close, we were able to gain some traction and turn a small profit in the fourth quarter. In 2011 we were able to slowly but surely build on that momentum and quarter after quarter profits were made as the hill of problem assets became manageable.
Entering 2012, our corporate profile continues to evolve, strengthened by change and nourished by history. Our Board of Directors has added three new members to provide additional governance insight from an unaffiliated perspective versed in other banking environments, shareholder viewpoints, and public policy. However, as we look to the future, we respect our history and as such, although now retired, we greatly embrace the mentoring provided by our Directors emeritus Harry Blencoe and Bob McLendon. It was Mr. Blencoe who, for over 50 years, guided the direction of this institution, creating a financial beacon for the community and a foundation of conservative principles upon which we will continue to build.
Together we will maintain the traction of financial success as a four-wheel drive enterprise driven by our Directors, Shareholders, Management and You, our loyal customers. Thank you for your continuing confidence in us and may I add a special “Thank you” to Mr. McLendon and Mr. Blencoe for their steadfast dedication to First Savings Bank Northwest.
As you travel the spillways of life, sometimes it takes an irritant to gain the traction of personal performance.
By Victor Karpiak
11/01/11
Dashing through the...
Dashing through the ……
How quickly time passes by; before we can say "Happy Thanksgiving" the music of the holidays begins to bellow across the airwaves, reminding us that the pressures of the season are upon us. During a recent trip I placed my headphones on, just to be alone with my thoughts. As my radio dial randomly sought a station available, out bursts the old holiday favorite "Jingle Bells"! What struck me was its beginning "Dashing through the snow…" causing me to focus on our daily lives as we often dash through the events at hand and are not fully engaged in the details.
Sometime ago as we were dashing through the "consent order", we indicated that we believed we had complied with the issues presented. Unfortunately, the regulators did not agree with our assessment. Our focus was on material items such as maintaining capital, reduction in nonperforming assets, reducing exposure to construction and land development lending, limiting the concentrations within our commercial real estate portfolio as a percentage of capital, and a return to profitability. All of these items were accomplished well within the time frame stipulated in the order, causing our belief that we had fully complied, but to our dismay the order was not lifted as expected.
In our dash to fulfillment, we neglected some of the details attributed to the management study. Although we made quality changes to our management team before the order, we did not address the bench strength required to take us to the next level. It is this detail that has now received our attention and we are excited in the progress being made. We are actively in discussion with potential new Board members who would be a quality addition to our Board, and allow some of our senior directors who have served us so very well over the years to take their rightful place as emeritus, a designation they so richly deserve. Management is also being evaluated and efforts are under way to identify external individuals who would be an asset to the organization, possessing the experience and qualification to make us a stronger institution, able to expand into the markets necessary for a long and successful future. We firmly believe that once this attention to detail is executed, the possibility of getting the order lifted is very probable.
As you dash through the upcoming holiday season, don’t forget the details which often get left behind. Pay attention to those close to you, as family and friends are what make the holidays... not the material items of decorations, shopping for the perfect gift, or making sure the meal is ‘just so’. Yes, they are important, but if that becomes the primary focus of the season, then you will have missed the vital detail necessary, to remove any corrective order which might have come between those you care about and yourself during the course of time.
As this will be out in print shortly, may I be the first to wish you and your family a Happy Thanksgiving and a very merry holiday season.
Listen to the jingle bells but don’t dash past the spirit of the mistletoe, which is to embrace family and friends.
Happy Thanksgiving, and wishing for a very Merry Christmas!
By Victor Karpiak
08/04/11
Silent Turbulence
In a recent weather related event, the city of Phoenix, Arizona, was covered by a wall of dust which impacted every segment of the population. As this silent wave of turbulence progressed, its power was experienced by all those who were caught in its path. Traffic came to a standstill, airports shut down and all efforts to minimize its impact were implemented; still, filters were clogged, breathing became difficult and massive cleanup was faced. This desert phenomenon is not that dissimilar to the financial turbulence we all have experienced during this long economic downturn. No singular event was its cause and no matter how diligent we were, its recessionary wave covered us all.
At First Savings Bank Northwest we are continuing to clean up the remaining remnants of the housing market disaster which left a covering of not only financial losses but took an exacting toll on the human element of the equation. It was distressing to see longstanding borrowing relationships unable to survive the depth and prolonged challenges of the recession. Some faced liquidation, others just simply walked away. While many expressed appreciation for our efforts to develop in partnership sustainable workout strategies, economic realities determined it was not to be. We empathize with those who lost so much and understand the frustration expressed by those for whom there was no viable solution. The only consolation in all of this is that, as in the aftermath of any storm, once the dust has settled recovery begins. What shape and form that recovery takes on is personal and determined by the opportunities reached out for and grasped by each individual.
In our everyday lives, as this financial turbulence reluctantly subsides, and the highlighted fears of governmental default and a sustained crisis diminish; be mindful of masked opportunities often times seeded with greed. During transitional times such as these, it is important to stay the course; maintaining financial relationships grounded in confidence, safety and integrity. For the many of you who have chosen us as your financial home, we greatly appreciate your commitment to our outstanding institution. For those who have not yet experienced the exceptional customer service we provide, we invite you to give us a try.
Although not yet reflected in our stock’s price performance, we are optimistic about our promising potential as evidenced by three consecutive quarters of positive earnings and a substantial decrease in our non-performing assets. With capital levels among the highest in our region, an improved management team, and having complied with all of the requirements contained in the regulatory Consent Order, we whole-heartedly believe we are on a sustainable path of solid performance, quality growth, and a bright future.
Once again, thank you for your confidence in us.
By Victor Karpiak
06/06/11
Check your website address
Just a reminder for those of you who may still have links saved to our old "fsbrenton.com" site - That domain will be turned off on JULY 1, 2011.
If you'll recall, we changed our name to First Savings Bank Northwest in 2007, and updated our website and email accounts to reflect that change by using the "fsbnw.com" domain.
We don’t want to lose touch with any of you, so please check and make sure that you’re using “http://www.fsbnw.com” for our website and "@fsbnw.com" for any of your contact addresses.
By First Savings Bank Northwest
04/19/11
Partnership Takes Commitment
Recently, when visiting my daughter in Wisconsin, I was startled by the loud sirens declaring a tornado was rapidly approaching and that appropriate steps must be taken for safety sake. The sounds were intriguing for a Northwesterner like me causing the reckless action of stepping out on a deck to look straight out at the awesome sight of nature’s power. As the storm slowly passed by, our collective concerns were eased and all attention turned to the surrounding communities, watching diligently for news of others hoping they too would have escaped the tempest.
The thing I found most interesting was the quick formation of a natural partnership, bringing together a community ready and able to provide assistance as needed. It was evident that this partnership was not random but a reflection of an ongoing commitment by each participant.
My thoughts ventured onto the partnerships we have developed with our corporate commitment to community, customers, and shareholders. The value placed on these relationships cannot be measured by traditional means but is evidenced by the quality of life within our communities, by the financial security associated with a strong institution, and by the investment value potential of a quality organization.
Our Commitment to Community:
First Savings Bank Northwest has always partnered with our community through its belief that a strong community enhances corporate objectives. This is illustrated by our contribution to education through the Community in Schools program, our attention to affordable housing through the City of Renton’s housing program, and our support of the various civic organizations such as Rotary, Kiwanis, and Lions Clubs. Our contributions are not only monetary, as our staff gladly volunteer their time and effort when the call for service is made.
Our Commitment to Customers:
First Savings Bank Northwest believes that its greatest asset is its customers and, as such, has continued to provide quality services such as friendly staff to assist (no automated answering machines here!), an inviting lobby in which to do transactions, and for the computer savvy an online banking platform. All of this without material cost to our customers while paying the highest rate of interest possible. In the financial world we are criticized for not having a substantial amount of non-interest income but that is because we believe that service should be free, including checking accounts even when others are now saying they must charge fees to maintain profitability. We are convinced our commitment will be rewarded by your loyalty.
Our Commitment to Shareholders:
First Financial Northwest respects the partnership we have with the investment community. Although our performance last year continued to be challenged as we navigated through an economic storm which consumed a number of our peers, battered and bruised our surface, still the core of our institution remained solid, improving quarterly with troubled assets declining and earnings improving. We remain committed to the collective goals of this organization which are to restore asset quality, improve earnings along with stock performance, and we are confident in our ability to do so.
Thank you for partnering with us. Remain committed to your cause – be it growth, retirement, college education or quality of life issues – and you will not be disappointed.
By Victor Karpiak
02/24/11
Organize & Simplify Finances
Consumers who organize and simplify their financial life can eliminate clutter, save time, reduce stress and save money on fees, interest or other charges. The Winter 2010/2011 issue of FDIC Consumer News, published by the Federal Deposit Insurance Corporation, features tips for streamlining money management. Other timely topics include strategies for getting a small business loan, a warning about new financial frauds on the Internet, an explanation of the unlimited FDIC insurance coverage for noninterest-bearing transaction accounts, options for boosting college savings, and ideas for positioning personal finances for changing interest rates.Here’s an overview of the topics, tips and other information in the latest newsletter.
· Organize and simplify your financial life: The newsletter offers basic strategies in areas such as automating many banking and bill-paying chores and putting important papers in order, including guidance on how long to keep bank statements, credit card bills, canceled checks and other financial records. Also covered are mobile banking by smartphone (a hand-held device used to access the Internet, run applications and make phone calls), managing a mortgage in good times and bad, and preventive measures for reducing the chances of becoming an identity theft victim if a wallet is lost or stolen.
· Strategies for getting a small business loan: Small businesses are critical to the American economy, and for these companies to survive and generate new jobs, they need credit on affordable terms. The newsletter offers tips for getting a loan, starting with the importance of preparing or updating a business plan. The FDIC also has two new resources that can help small business owners who have questions or concerns about borrowing money: a toll-free hotline (1-855-FDIC-BIZ or 1-855-334-2249) and a Web site (www.fdic.gov/smallbusiness).
· Fraud alert: text messages, pop-ups and downloads to avoid: The FDIC warns consumers to be on guard against “urgent” text messages, unexpected pop-up windows on Web sites and unsolicited “deals” on downloads that have tricked consumers into divulging valuable personal information to financial criminals. Consumers also should be careful when disclosing information and clicking on videos, pictures and links on social networking sites because computer hackers visit these sites to install malicious software on network members’ computers and gain access to online bank accounts.
· A closer look at the unlimited FDIC insurance coverage for noninterest-bearing transaction accounts: Under the Dodd-Frank financial reform law enacted last July, certain checking accounts that pay no interest will benefit from full deposit insurance coverage during the two years from December 31, 2010, through December 31, 2012. Because the FDIC continues to get questions about this new program, important information is highlighted.
· Saving for college: As states tighten their belts and higher-education budgets are squeezed, the FDIC provides tips on saving for college and minimizing the sticker shock of higher education. The most important recommendation is to start planning and saving for college as early as possible, preferably soon after a child is born.
· Why interest rates matter: Rates will head up as the economy gains steam, but exactly when is still uncertain. Now is a good time for consumers to assess how interest rate changes may affect their savings and borrowing plans.
The goal of FDIC Consumer News is to deliver timely, reliable and innovative tips and information about financial matters, free of charge. The Winter 2010/11 edition can be read or printed at: www.fdic.gov/consumers/consumer/news/cnwin1011.
By First Savings Bank Northwest
01/27/11
A New Attitude
With the turning of a calendar page the magic of the New Year appears, where resolutions are made, weights of the past discarded, and an attitude of promise is formed.
It is a time to look back at the challenges experienced and their resolve, while looking forward to the opportunities ahead. Although typically a new year emphasizes personal growth and reflection, we believe it can also serve us well corporately.
Looking back to early 2010, given the ongoing economic challenges, First Savings Bank Northwest, similar to many banks in this great recession, was saddled with a growing nonperforming loan portfolio, increased losses, and regulatory challenges. By the end of March 2010, the nonperforming loans had reached approximately $146 million. In the face of these obstacles we remained determined to restore this great institution to the performance levels embedded in our history, expected by you our customers, shareholders, management and Board of Directors. Our course of action included management changes, aggressive collection methods, hiring experienced professionals, and developing a special assets team whose focus was strictly on the troubled loans. The result of our efforts became evident in December 2010 when the nonperforming loans decreased by 57 percent from their peak down to $63 million and we were able to post a quarterly profit; the first in two years. As the weights of these troubled assets continue to decline, we are emboldened with a new attitude of optimism looking forward to a promising new year.
With a corporate attitude which embraces structure, accountability, and conservative principles, we are certain that as we embark on this new decade, the year 2011 will be but a stepping stone to greater opportunities, solid performance, and enlargement of our footprint. While management’s emphasis remains toward improved asset quality and earnings, we are just as determined to once again position ourselves for growth, enhanced product development, expanded services, and a return to being a leader among the local financial community.
May the magic of the New Year, transform your challenges into an attitude of hope, serving as that keystone paving the pathway of a successful future. In measuring success, recognize that it is not only a function of statistics, ratios, and assumptions but also a reflection of confidence. As we assess our performance, the confidence you have placed in us provides a strong and solid foundation upon which we will continue to build a very successful future.
Happy New Year!
By Victor Karpiak
01/18/11
Your Credit in 2011
Starting in 2011, many credit-seeking consumers will get more information about how their credit report or credit score can impact a lender's decision to grant credit and the terms under which credit is offered.
Beginning January 1, new rules from the Federal Reserve and the Federal Trade Commission require lenders to provide new information to consumers under certain conditions. The Federal Reserve Bank has established a website that provides specific details about the new information and what it might mean to you as a potential borrower. The reader can also access a wide variety of other useful financial information from that page.
By First Savings Bank Northwest
12/20/10
Employee of the Year 2010 Announced
Employee of the Year 2010
Mr. Blencoe, Director Jeff Smith, & Victor Karpiak, CEO
The winner of the H. A. Blencoe Customer Service Award & Employee of the Year for 2010 was announced at our Staff Recognition meeting on Wednesday, December 15, 2010. Jeff Smith, our Facilities Technician was selected by his peers to win this highest annual achievement. Jeff, who has been employed with FSBNW since September, 2009 has done a fantastic job finding ways to help the Bank and our staff conserve resources and save time. He provides his customers -the rest of us who work here at the Bank- with special attention to detail, perfect attendance, and considerate assistance whenever we need him.
Jeff lives in Kent, is married and has enjoyed his transition to the banking world. He brings years of experience, having been the facilities technician for several local fitness centers. He is but one of a select few employees who have earned this award. Initiated in 2005, to honor our Past President/CEO, Mr. Harry Blencoe, the H. A. Blencoe Customer Service award was created to annually recognize those staff members who go above and beyond, and have demonstrated they are committed to the importance of savings, strive to provide personalized service, or they helped our customers save. Past winners include: Lonnie Malmassari, Ginger Elie, Nancy Terry, Amy Farnham, and Stephanie Walker.
Thanks Jeff, for doing such a great job!
By First Savings Bank Northwest
11/05/10
Are we there yet?
As we approach the holiday season my mind goes back to the days when all of us kids were squeezed into the back seat of the Oldsmobile and away we went to Grandma’s house. What in reality was a few minutes but to a boy with little patience seemed like an eternity, the words blurted out “are we there yet?” My father then proceeded to give me the road map as prepared by AAA and insisted that I follow our path. To this day, as I travel on any extended road trip, I have a map next to me, not because I’m not sure of where to go but so I can measure my progress, see the areas just passed, and identify the points of interest which lay ahead.
Our recent disclosure of a Consent Order issued by the FDIC serves as a regulatory “road map” by which our progress to restored regulatory compliance can be measured. As in any trip, there are many points of interest. In the case of our Consent Order, 16 “points” were listed, some critical and others just technical. Given the space constraints of this article, I will focus on the three points considered most critical.
They are:
Retain qualified management. We recently hired a seasoned credit administration team which is performing very well and have addressed the credit challenges we have been experiencing, whereby significantly reducing our exposure to problem loans.
Maintain Tier 1 Capital at or above 10%. We held substantial cash at the holding company level and immediately downstreamed to the Bank an amount sufficient to meet the regulatory agency’s request while still maintaining an excess at the holding company.
Reduce classified asset. We have, through foreclosure action, short sales and charge offs, substantially reduced the problem loans, whereby meeting the target ratio specified. We continue to make progress on the remaining problem loans which are concentrated in newly constructed homes.
With the critical components met, our management team is confident that the remaining technical items listed in the Consent Order will be satisfied within the timelines specified, paving the way for an ultimate release from the Consent Order.
Are we there yet? As in any road trip the last few miles seem the longest but we are making measured progress. Our road to restored profitability has had many bumps and curves but our destination remains the same; that is, to be an even stronger, more solid and fiscally sound financial institution, of which you can continue to be proud.
Enjoy the holidays and have safe travels wherever your family events take you.
By Victor Karpiak
11/01/10
FSBNW meets all regulatory capital requirements.
FFNW announced twice, first on September 27, 2010 and again in its October 22, 2010 press release that its wholly owned subsidiary, First Savings Bank Northwest, had exceeded all of the capital requirements of the Consent Order issued by the FDIC and Washington State DFI on September 24, 2010.
Media stories have inaccurately reported that First Saving Bank Northwest had 30 days to raise new capital to comply with the order.
A copy of our press release providing third quarter financial results dated October 22, 2010 and a copy of our September 27, 2010 press release, announcing that FSBNW had entered into an a joint supervisory agreement with our regulators, can be accessed from our Investor Relation tab – located at the top of each page within this website.
By First Savings Bank Northwest
06/11/10
"The Great Recession"
Dear Shareholders, Customers and Friends:
The challenging economic times we have been dealing with since 2007 are continuing. Prolonging the crisis is the current focus on the debt of many sovereign nations and the distinct possibility of a jobless recovery. This “Great Recession” has affected most businesses, including banks, and First Savings Bank Northwest (“Bank”) is no exception.
I am writing to give you a mid-year update on how First Financial Northwest, Inc. and its wholly-owned subsidiary, First Savings Bank Northwest, are dealing with these unprecedented economic times and the continuing decline of the Pacific Northwest’s housing market. Since 1923, as a traditional thrift institution, we have successfully focused on the local housing industry lending to developers, builders and homeowners. While this approach has served us and our community well in the past, it has presented extraordinary challenges for our portfolio of residential real estate loans; particularly loans for real estate development and construction.
With the significant decline in home prices and home sales, many of our builders and developers that we have financed for decades have been unable to sell their homes or lots at anticipated prices causing the Bank to charge-off portions of these loans. In an attempt to improve our asset quality, we have been continuously reducing our exposure to the real estate construction sector. The charge-offs we have already recognized, along with the additions to loan loss reserves, will further assist us in this undertaking. Specific details on our nonperforming assets (“NPAs”) are contained in our public filings with the Securities and Exchange Commission (“SEC”) each quarter. Our primary goal over the next few quarters is to significantly reduce the level of our NPAs. We have diligently implemented an aggressive NPA reduction plan, and have allocated substantial resources to reach this goal.
We recently announced the addition of Herman “Rob” Robinson as our new Chief Lending Officer to our strong leadership team to address these challenges. Rob brings over 40 years of bank lending experience, including extensive experience in working through challenges similar to what we are facing today. We are already seeing positive results of improved credit administration and are pleased with the additional strength Rob brings to our management team. In addition, our Board of Directors consists of knowledgeable, experienced business and community leaders that have the specific expertise in the management of diverse economic cycles to guide our executive team through this difficult time. Collectively, we are committed to taking the appropriate steps towards reducing our levels of NPAs and returning to profitability.
Fortunately, we have the capital to support our efforts. Our tangible capital ratio of 17.7% to tangible assets at First Financial Northwest as of March 31, 2010 is among the highest of all banking companies in the Pacific Northwest.
Notwithstanding these issues, shareholders may also be concerned about the recent volatility in the stock market, including the share price of First Financial Northwest. Rather than speculate on the daily swings in the stock market, we remain focused on returning the bank to profitability and enhancing our book value (which was $11.17 per common share at March 31, 2010). We will continue to concentrate on taking care of our customers, reducing non-performing assets and operating a sound bank.
We also want you to know that the Bank is not facing some of the additional issues that other financial institutions have encountered. For example, we did not originate sub-prime mortgage loans, nor did we invest in the risky investments that affected many balance sheets, such as collateralized debt obligations, interest rate hedges, derivatives, or trust preferred securities. Moreover, we did not accept any TARP funds from the government.
As a publicly traded company, we make available to the public a tremendous amount of detailed information. We strongly recommend that you review our earnings releases and SEC filings each quarter. These, and other information, can be found in the Investor Relations section of our website at www.fsbnw.com .
Like all previous recessions, the economy will recover. We are seeing some positive signs, but it will take time to work through the current challenging environment. We will continue to take the necessary actions to weather this economic storm. Rest assured, First Savings Bank Northwest is still the same bank with the same values that has served its customers and communities for close to a century.
Thank you very much for your continued support of First Financial Northwest, Inc. and First Savings Bank Northwest. We take pride in our history of serving our customers as a safe and sound financial institution and we look forward to being your financial partner for many years to come.
Sincerely,
Victor Karpiak
Chairman, CEO and President
By Victor Karpiak
04/02/10
A Statement from our CEO
With the arrival of spring, we see the changes from nature’s winter of colorless gloom, to blossoms slowly showing themselves; signaling the promise of warmer days ahead. This example from nature is relevant in our economic cycle as well.
As remnants of the economic challenges which consumed us throughout the past year linger on, there are the signals of recovery slowly appearing on the horizon. With the unemployment rate beginning to show signs that it has peaked, and the housing market stabilizing, we have become increasingly confident that the greatest of the challenges are behind us. Oh yes, there will be challenged earnings for the next few quarters, but looking beyond this season of difficulties, there is a tomorrow filled with opportunities for growth in product development, service delivery, and customer expectations. As you are aware, 2009 has been most difficult for our organization, as we addressed asset quality issues which resulted in a level of foreclosures I have never experienced in my 33 years with this great institution. Traditionally, and as was the case during this economic downturn, we have worked with our borrowers to resolve their inability to repay their obligations. Unfortunately, due to the depth of this housing crisis, where home values continued to depreciate by substantial margins, our builders have been unable to sell their product for what it cost to build. With some, we have been able to develop workout plans providing an opportunity to sell at reduced prices, but with others there was no option but to foreclose. All of these actions resulted in us setting up provisions for potential losses, or charging off principal amounts which impacted our earnings, causing a loss for the year. Although it is not uncommon for the national and local banking community to report a loss during these tough times, it nevertheless is a cause of concern for you our loyal customers, for our shareholders who have invested in us, and to our regulators who face an enormous task of issuing their report card on the strength of the banking community. I am certain they are not giving out many "A" grades.
As in nature’s transformation from the gloom of winter, to the colors of spring, so is our resurgence from the losses endured to the path of profitability. Yes, there will be a period of continued challenges before the blossoms appear, but the buds of strong capital, loyal depositors and good core earnings are in place. With some additional pruning, we are confident that we will once again stand tall among our peers, as that solid financial institution upon which you and your family have relied for generations.
Thank you for your confidence in us; together we have made First Savings Bank Northwest an institution of which we can all be proud. Our Directors, Management and Staff collectively, appreciate the opportunity we have to serve you, and without exception, remain committed to the principles which have guided us throughout history. It is this commitment, rooted in maintaining excess capital levels, solid core earnings, providing quality customer service and preserving the reputation of this great organization, which will make us a strong leader among community banks for generations to come.
On a lighter note, if you have had the opportunity to visit our office recently, you would have noticed that our Loan Center is now complete; the drive through has been restored, and the ATM again operational. Please stop by and take a look at the improvements done in our little corner of the world, here in downtown Renton.
Once again, I thank you for your loyalty.
By Victor Karpiak
03/29/10
Make Savings a Family Affair
This article is a pdf provided by the ABA Education Foundation - and provides you with a Family Savings Goal Worksheet. We hope you'll find this beneficial as you plan your family's savings.
To view a pdf version of this article, press here
By First Savings Bank Northwest
01/14/10
A New Beginning
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
By Victor Karpiak
11/27/09
Our Knitten-Mitten Tree celebrates 40 Years
The Knitten-Mitten Tree has been a tradition of FIRST SAVINGS BANK NORTHWEST, dating back to when we were known as First Federal Savings & Loan Association of Renton.
For forty years, we have hosted a large Christmas tree in our lobby, and asked members of our community to knit warm mittens, gloves, scarves, etc. to decorate our tree; then are donated to the Renton Salvation Army for their Holiday Party, where they are given to those less fortunate.
Our tradition began in 1969, and came from a suggestion from Mr. Tom C. Ross, a Lending Officer, to Mr. H. A. Blencoe; our CEO at that time. What a great way to have a family-themed Christmas tree, and help those in need! Every year since, we have placed a large tree in our lobby, and let your knitted gifts of love decorate the boughs. Hundreds of items are collected and the tree looks amazing! Customers and friends from all over the country help contribute to what has become a very special tradition at FIRST SAVINGS BANK NORTHWEST.
If you are interested in taking part in this wonderful Christmas tradition, please bring your mittens, gloves, scarves, booties and the like to our office. Of course we welcome store-bought items too; everything is greatly appreciated. And you’re invited to help decorate the tree too!
Thank you from all of us at FIRST SAVINGS BANK NORTHWEST for sharing with others this Holiday Season! We wish you and your families all a very Merry Christmas and the happiest of Holidays!
To view a pdf version of this article, press here
By First Savings Bank Northwest
11/01/09
A Season of Thanksgiving
The sudden crispness in the air announces the arrival of Autumn; a season of Thanksgiving which paints the landscape with brilliant colors and causes a natural shift in awareness from the carefree attitude of summer days to a renewed focus on opportunities ahead. As I peer through nature’s window of change, the portrait reveals that the discomforts of dark skies, wind and rain must be experienced before the beauty of the season may be realized. A unique event which causes us to reflect on the pleasures of the past and voice thanks for the benefits of the future.
Likewise, during this season of economic challenges, we remain confident as we approach the turning point toward positive change that better times are ahead. Although we recognize that some additional discomfort might be experienced before the opportunity of stabilized profitability is realized, we are thankful for the successes of the past; yes, for the challenges of the present but also for the optimism the future brings. Most of all we are thankful for you, our loyal customers, without whom we would not be.
Many of you have banked with us for generations and seldom does time permit for me to express my heartfelt appreciation for your continued confidence in our organization and in the staff which serves you. During this season of Thanksgiving I want to personally thank each one of you for being depositors, borrowers, shareholders and friends of our institution. Because of your steadfast relationship with First Savings Bank Northwest, we have a bright future, unlike many local financial institutions which are struggling for their very survival.
It is my desire to individually express my gratitude to each one of you, how that can be accomplished I’m not sure... but until then, thank you once again for being a part of our extended family. May the season of Thanksgiving be a memorable one for you and your loved ones as you share in each others company.
By Victor Karpiak
08/05/09
Strong, Safe, Secure
These powerful words remain the descriptive voice of First Savings Bank Northwest whose roots are anchored in excess capital, solid core earnings and proven leadership. Although we are not immune to the negative force of recessionary pressures which confront our institution, we possess the required resources to withstand its challenges and exit this economic quagmire as a stronger banking franchise.
Recently, we had an independent analysis of the local economic landscape performed which resulted in a validated recognition that the conditions here in the Pacific Northwest continue to deteriorate causing unprecedented declines in home sales and real estate values. This has negatively affected nearly all home builders, developers and businesses related to the real estate industry, our customers included. As part of our review, we determined that the market value of some of our borrower’s projects declined to a point that they no longer fully supported the loan. For this reason, we substantially increased our "provision for loan losses" which basically is setting aside some capital to cover any loss potential. Although it has a negative impact to current earnings, it becomes as a rainy day fund in the event that the borrowers fail to perform and an actual loss is incurred. We also negatively impacted earnings by expensing "goodwill" which is a non-cash accounting treatment of an asset carried on our books representing a mortgage company purchased several years ago that has since been merged into the bank’s normal operations.
By taking these actions we are prepared to aggressively manage our stressed loans, confront further economic challenges and continue the successful traditions of this great institution. First Savings Bank Northwest continues to be rated among the leaders within the local banking community; and, with our commitment to service, competitive rates and financial stability we are able to provide that safe harbor for all of your financial needs.
Thank you for your continued trust in us and I assure you that as the challenges of this economic cycle come to a close, we will remain Strong, Safe and Secure.
By Victor Karpiak
07/02/09
New changes in Regulation D and what it means to you.
The Reg D Amendments approved by the Federal Reserve Bank on May 20, 2009 are now effective. The new rules increase the permissible transactions from savings accounts that are made by check, draft, debit card or similar order and payable to third parties. These were restricted to three, prior to this change, and now may be any number of the six withdrawals allowed.
This means to you is now you may write up to six checks a month with your money market account, or your Treasury Indexed Account. There is a limit of 6 transfers to another account or to third parties by preauthorized, automatic, Internet, telephone, check or similar order per statement cycle. However, there are no restrictions on the number of withdrawals that you may personally make in our office.
Let us know if you have any questions about the new changes in this regulation.
By First Savings Bank Northwest
05/01/09
Here we grow again!
Approximately four years ago, First Savings Bank Northwest moved into our new facility, which we all have appreciated. From the comments received, it is apparent that as you visit our branch you have enjoyed its warmth, making your banking experience a delight. During the past month, you might have noticed the fencing and construction signs; as we are now developing the second phase of our campus by building a new loan center. Although growth causes disruptions and can be inconvenient; it is a sign of health and stability.
Recently, I had the wonderful opportunity of seeing my grandson who is now approximately one month old and I was amazed by how much he had grown in such a short period of time. With that growth he developed strength to move his arms and legs, the ability to maintain eye contact and exercise his vocal cords, all welcome confirmations that he is a healthy baby boy.
That principle of growth is also applicable in the corporate world as a measuring tool for validating the health of an organization. As a company grows, it develops the financial strength to; expand its position by recognizing available opportunities, maintain a focus on core objectives without undue distractions, while being attentive to the demands of its customer base. Without core growth, a corporation risks being stagnate, unfocused and in need of direction.
First Savings Bank Northwest continues to be a company which is growing to meet the challenges of today and the opportunities of tomorrow. Internal efforts have created the framework for expansion which considers the social, financial and consumer impact of any growth plans. We remain committed to a corporate culture which is mindful of current opportunities available, yet embraces the traditions of the past that have made us who we are. It is this well defined balance, which propels our growth with an emphasis on financial strength, core objectives and customer needs. Our growth has taken us from a quiet mutual institution to that of a publicly traded regional savings bank without compromising our mission of being fiscally responsible, providing personalized service and offering products customers can use.
In our quest to better serve you, we have expanded our deposit and loan products beyond those we have traditionally offered, to include a business banking platform, home equity lines of credit, merchant banking opportunities and soon, fully integrated online banking. To accommodate this growth we have stepped up our commitment to be the Northwest’s leading “user-friendly” institution by increasing our staff so that the high level of personalized service you have been accustomed to is not compromised. As a result of this expansion we have out grown our facility and are now building the addition to better accommodate our staff and customer needs. While we grow, please accept our apology for the inconvenience of the relocation of our drive-up teller to the parking garage (accessed from Williams St.) and the temporary removal of the ATM. They will return to their normal locations upon completion.
The blueprint of our success is in the relationships built over the years and the loyalty of you, our customers, for which we thank you. Our appreciation for your support is unending and we look forward to growing together!
By Victor Karpiak
01/30/09
A Statement from our CEO
With each investment statement received, the reality of the current financial mess hits home. Investment packages, once promoted as the sure bet darling of the financial world, are now but a soaked doormat of despair, as life and retirement savings disappear. As envelopes are opened and the negative figures viewed, those who have the strength let out a huge gasp, while others just sigh and the ‘what if’ saga begins.
What if, the concern for safety and soundness of our investment was the cornerstone of our financial decision and not that of unquenchable thirst to chase unrealistic returns? What if, our trust was placed in the hands of a community banker instead of commission based Wall Street advisors? What if, those monies invested under promises of double digit yields and now are double digit principal losses, were placed in a simple savings account? How different would our financial world be!
While First Savings Bank Northwest cannot amend the past, we can enrich your future. We are, and always have been, commited to the importance of savings. It is never too late to get back to basics. Our savings customers are in a select group for their year-end statements detailed positive earnings and secure principal balances. With a variety of deposit products, we can satisfy any investment appetite driven by concerns for safety and soundness.
First Savings Bank Northwest prides itself in being a solid financial institution with abundant excess capital to weather the current economic crises as a stand alone institution, without any government bailout assistance or Federal TARP money. This position makes us unique, as we are one of the few local financial institutions to publically declare that we will not seek taxpayer money.
For the generations of families who have placed their trust in us, we thank you and assure you that you will not be disappointed in our leadership through these trying times.
To those who have not yet fully experienced the First Savings Bank Northwest tradition, we invite you to begin exploring the basics of saving with us and enjoy positive earning statements for years to come. We strive to be your first choice for personalized service.
As a member of the First Savings Bank Northwest family, I thank you for being a part of us and appreciate the confidence you have in this institution, as evidenced by the hundreds of millions of dollars in deposits placed in our trust.
Once again, we are a quality financial institution whose principles are rooted in conservative financial values and although banks around us may begin to crumble, we remain entrenched with solid footings and will be there to serve you for generations to come.
By Victor Karpiak
04/13/09
Teach Children to Save
Did you know that April 21, 2009 is national Teach Children to Save Day? To celebrate this important initiative, we've compiled these tips to help your children learn how to save. Though this article is primarily written for children, adults and adolescents may also find value. That's the beauty of going back to the basics. In the process, we, as adults, end up re-learning concepts we may have forgotten along the way.
Teaching children to save must first begin with showing them how money is used, and as we know, that goes beyond saving. Only then can you expect your child to build a healthy relationship with money. Money is to be both saved, as well as spent, hence the reason why we call checking accounts “dynamic savings.”
So whenever you can—and especially when your child is present—use cash, instead of your credit or debit cards to pay for things. With cash, your child will see a tangible, real item that he or she can see and touch when it's here and not see when it's been spent. When it's time to pay for items, have your child count the money with you. Allow them to participate in the action of paying for things. Managing money is also about good decision making. “Do I spend all of my allowance, or do I save some of it?”
Any money that's left over should also be counted and placed in a savings vehicle. Bring your child to the Bank and open a savings account with them, to help them learn about interest. Show them that money doesn't only come from ATMs, by making deposits and withdrawals inside your Bank. Encourage your child to make deposits into their new savings account, rather than buying things, and keep their relationship to money healthy by offering non-monetary rewards for good behavior.
Do you have other, practical tips that help kids save money that you'd like to share with First Savings Bank Northwest customers? Send us an email.
By First Savings Bank Northwest
01/02/09
Welcome to the Bulletin Board
Hello, and welcome to the first of many Bulletin Board postings.
Naturally, you may be wondering about the kind of information you'll find here. You'll discover exclusive information and tips that help you save money and time. This is information you will actually care to know about!
Why does having savings information and tips matter? And how are we so certain you'll care about it?
First, we'd all agree that because of our country's current economic climate, money is on everyone's mind. Now more than ever, everyone benefits from knowing how to continually protect and grow their hard-earning savings.
And because we're going to continually ask you, and other members of our community, what topics you'd like us to discuss, you'll find this information invaluable and highly relevant.
As the Savings Expert, we've made it our goal to take the mystery out of money so that you can have more “ah ha” moments.
So what would you like to hear about in our next bulletin board posting? Tell us with an email.
By First Savings Bank Northwest
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