Text Box: Dear Northwest Commercial Bank Shareholders, I am pleased to announce that your bank produced a profit of $71,000 for the first quarter of the year. This compares to a $160,000 loss during the same period last year. Net interest income increased from $597,000 to $838,000 as compared to the same quarter last year. Real estate values have stabilized somewhat and the increases in the unemployment rate appears to have eased. The increase of problem loans that we have experienced as a result appears also to have stabilized. If this trend continues, we should see the effect to our financial performance over the coming quarters. Our net interest margins continued to increase and are currently at 5.01%, the highest in several years. We expect that there will be some pressure downward on this ratio as the economy improves. Additionally, several recent bank failures has resulted in new competition. This will also put downward pressure on the net interest margin. Your banks capital ratios are very strong. As of March 31, 2010 they were: Tier 1 leverage ratio: 12.57% Tier 1 risk based ratio: 14.62% Total risk based capital: 15.85% Loans, net of reserves, were $62,055,000, compared to $66,218,000, a $ 4,163,000 decrease over March 31, 2009. This is the result of a pay off of two loans totaling $7,000,000 that were secured by CD’s also held by our bank. Assets totaled $71,707,000, compared to $ 80,436,000, an $8,729,000 decrease over March 31, 2009. The above mentioned pay off is reason for the drop in this area. When comparing Q1 of 2009 to Q1 of 2010, a very encouraging development is the reapportionment of our deposit base. There is a reduction in the reliance on brokered CD’s and public funds deposits. The large increase in our core deposits is very welcoming news. As always, we thank you for your support. Please continue to refer your friends and neighbors to your bank. Sincerely, Kurt Graff CEO/President