Regulators Ease Restrictions on Renton's First Savings Bank Northwest

Federal and state regulators have lifted some restrictions on the parent company of Renton’s First Savings Bank Northwest, the Puget Sound Business Journal reports. 

The bank has been under regulator orders since 2010 to increase its capital ratios and reduce risk from bad loans.

The parent company First Financial Northwest Inc. can can now hire executives and pay severance without approval of bank regulators. But the bank still must seek prior approval for paying dividends to investors or repurchasing common stock.

In a regulatory filing Friday the bank said the Federal Deposit Insurance Corporation, Washington Department of Financial Institutions and the Federal Reserve have lifted the “troubled condition” status of First Savings Bank Northwest.

The Journal quoted First Savings CEO Joseph W. Kiley III as saying, “We are pleased that our regulators have acknowledged the significant improvements we have accomplished. I would like to thank our employees for their hard work and commitment that has allowed us to attain these important goals. With a solid capital foundation, we are well positioned for the future as we continue to execute on our strategies and priorities to strengthen our franchise.”

First Savings Bank Northwest was hurt by loan losses resulting from the crash in the housing market and diminishing capital levels.

For the Journal story, click here.