The Renton-based First Financial Northwest lost $40.7 million in 2009, mostly because of bad real-estate loans in the worst market since the Great Depression.

But, despite the loss, with $228 million in capital, First Financial – the parent company of the venerable First Savings Bank Northwest in downtown Renton – “remains a very strong, safe and sound bank,” said the bank’s senior vice president for strategic planning.

“We will definitely be a survivor through this banking meltdown with this strong capital,” said Scott Gaspard on Tuesday.

The capital – or money in hand – are more than double the requirements for regulations to consider the bank “well-capitalized,” he said.

The $40.7 million loss translates to a $2.18 loss per share. This is compared to last year’s net income of $4.7 million or 22 cents a share.

After the company released its fourth-quarter statement, its stock jumped 2.36 percent, a positive sign of investor confidence the quality of the bank’s loans has stabilized and the number of troubled loans is decreasing, Gaspard said.

The price jump is also a recognition of the company’s efforts to deal with its bad loans, which includes stockpiling reserves to cover delinquent loans, he said.

“Setting up and adding to reserves for delinquent loans is a very prudent thing to be doing in today’s uncertain real-estate market,” Gaspard said.

Several items, which total about $67.0 million, contributed to the bank’s net loss, including the largest, a $51.3 million provision for loan losses.

Victor Karpiak, board chairman and CEO, in a company press released, called 2009 “the most challenging in the history of our company.”

In the fourth quarter of the year, he said, because of market conditions the bank began “utilizing more aggressive measures such as foreclosures, short sales and accepting deeds in lieu of foreclosure as part of a determined resolution process.”