Text Box: Dear Northwest Commercial Bank Shareholders, The third quarter results reflect continuing weakness in the economy and the migration of problem loans in the bank’s portfolio. There continues to be a drag on new loan demand, as our customers continue to suffer in the current economic hardships. The problem loans necessitated an additional contribution to loan loss reserves although there has been stabilization over the prior year’s history. This resulted in a year to date loss of $107,000. Your banks capital ratios remain very strong. As of September 30, 2011 they were: Tier 1 leverage ratio: 10.82% Tier 1 risk based ratio: 13.70% Total risk based capital: 14.95% Loans, net of reserves were $57,775,000 as compared to $62,884,000, a $5,109,000 decrease over September 30, 2011. Assets totaled $76,306,000 compared to $74,536,000 for an increase of 2.4% over the same time period last year. Deposits totaled $67,285,000, compared to $62,663,000, for an increase of 7.4% over the same time period. As we reported to you in prior reports, we have filed an insurance claim with our fidelity bonding company and expect a possible recovery of the prior loss. We expect to have this resolved by year end. I will report to you when we have this accomplished. Our “Banking with a Northwest Touch” themed marketing continues to be successful in gaining new customers. Our Auburn branch is approaching $24,000,000 in total deposits and over 1,200 accounts which is quite a feat in these tough economic times. We believe that we will benefit in the surge of anti big bank public sentiment. As always, we thank you for your support and ask that you continue to invite your friends and neighbors to your bank. Sincerely, Kurt Graff CEO/President