How's your bank? Safe and sound.
April 2008
Dear Northwestern Customer,In the light of recent news in the financial world, we understand that you may have questions about area financial institutions and what impact, if any, the turmoil in the markets may have on your bank. We would like to take this opportunity to share some facts about our financial strength. I hope this information will help give you the same level of confidence that we have in the strength of Northwestern Bank.
- Sound Business Practices. It is important to know that Northwestern Bank does not engage in subprime lending or investing. We do not invest in financial derivatives, nor do we make high-risk speculative loans. Because we do not engage in these practices, our business is able to withstand market changes very well.
- Strong Capital Reserves. Northwestern maintains reserves well in excess of what is required by our regulator, the Federal Deposit Insurance Corporation.
- Substantial Liquidity. We have substantial cash assets on our balance sheet. Therefore, the total liquidity of the bank far exceeds any measure of what has been needed in the past or is anticipated for the future.
Many financial institutions have demonstrated a lack of prudence and responsibility, while at Northwestern we have consciously avoided risky investments and speculative lending. We have consistently focused on offering a wide range of mainstream products and services that we believe meet the needs of our customers. And we've made it a point to be direct and forthright in all our customer relationships.
Again, I hope this information will address any concerns you may have during these turbulent times. Thank you for banking with us. We care, and we appreciate the confidence and trust you have placed in us.
Very truly yours,
Scrub Calcutt
President & CEO