2013 annual report

CONSOLIDATED BALANCE SHEET
For the Fiscal Year Ended June 30, 2013
(Dollars in Thousands)
Assets
2013 ANNUAL REPORT
Liabilities and Equity
Assets:
Liabilities:
Cash and cash equivalents
$ 22,948
Deposits
Investment securities
264,368
Borrowings
Loans receivable, net
449,753
Other liabilities
Federal Home Loan Bank stock
$ 595,044
100,033
10,810
10,433
Accrued interest receivable
Total liabilities
2,329
Premises and equipment, net
$ 705,887
11,444
Mortgage servicing rights
1,434
Bank-owned life insurance
17,972
Prepaid expenses and other assets
Total assets
Equity:
Total equity
3,829
$ 78,623
Total liabilities and equity
$ 784,510
$ 784,510
Port Angeles Branches
Sequim Branches
Administration Center
Sequim Avenue
105 W. 8th Street
360.457.0461
Drive-up Hours
M–Th 8:30 am–5:30 pm
Fri 8:30 am–6:00 pm
333 N. Sequim Avenue
360.683.3886
Lobby Hours
M–Th 9:00 am–5:00 pm
Fri 9:00 am–6:00 pm
Drive-up Hours
M–Th 8:30 am–5:30 pm
Fri 8:30 am–6:00 pm
Downtown
141 W. 1st Street
360.452.6620
Lobby Hours
M–Th 9:00 am–5:00 pm
Fri 9:00 am–6:00 pm
Capital Ratios
June 30, 2013
Eastside
1603 E. 1st Street
360.417.3150
Lobby Hours
M–Th 9:00 am–5:00 pm
Fri 9:00 am–6:00 pm
Sat 9:00 am–1:00 pm
Drive-up Hours
M–Th 8:30 am–5:30 pm
Fri 8:30 am–6:00 pm
Sat 9:00 am–1:00 pm
20.0%
15.0%
10.0%
5.0%
Sixth Street
0.0%
Tier 1 (Core) Capital Ratio
Tier 1 Risk Based Capital Ratio
Total Risk Based Capital Ratio
227 E. 6th Street
360.457.0461
Lobby Hours
M–Th 9:00 am–5:00 pm
Fri 9:00 am–6:00 pm
Drive-up Hours
M–Th 8:30 am–5:30 pm
Fri 8:30 am–6:00 pm
■ Well Capitalized ■ Additional
OUR MISSION
OUR VISION
We set the standard for excellence in Community Banking. We’re
committed to knowing our customers and communities, so we
can provide them with innovative solutions that help meet their
financial goals and achieve their dreams. We deliver the best
banking experience anywhere, with a ‘home town’ touch.
Through service, leadership and strong financial performance, we:
• Put our resources to work strengthening communities and
supporting local business.
• Deliver banking services that support customer convenience
and choice.
• Attract, develop and retain phenomenal talent who love their
jobs and love where they live.
FIRST FEDERAL 2013 ANNUAL REPORT
141568.AnnualReport.AR.7.13.indd 1
Sequim Village Marketplace
1201 W. Washington Street
360.683.7935
Lobby Hours
M–Th 9:00 am–5:00 pm
Fri 9:00 am–6:00 pm
Sat 9:00 am–1:00 pm
Drive-up Hours
M–Th 8:30 am–5:30 pm
Fri 8:30 am–6:00 pm
Sat 9:00 am–1:00 pm
Forks Branch
131 Calawah Way
360.374.6122
Lobby Hours
M–Th 9:00 am–5:00 pm
Fri 9:00 am–6:00 pm
Sat 9:00 am–1:00 pm
Drive-up Hours
M–Th 8:30 am–5:30 pm
Fri 8:30 am–6:00 pm
Sat 9:00 am–1:00 pm
Port Townsend Branch
1321 Sims Way
360.385.1416
Lobby Hours
M–Th 9:00 am–5:00 pm
Fri 9:00 am–6:00 pm
Sat 9:00 am–1:00 pm
Drive-up Hours
M–Th 8:30 am–5:30 pm
Fri 8:30 am–6:00 pm
Sat 9:00 am–1:00 pm
Poulsbo Branch/
Lending Center
19980 10th Avenue NE, Suite 202
800.800.1577
Lending Center – Bellingham
1313 E. Maple Street, Suite 230
800.800.1577
Customer Service
360.417.3204
800.800.1577 toll-free
Touch Tone Teller
360.457.0484
877.322.0464 toll-free
Website
ourfirstfed.com
4
10/9/13 12:40 PM
MESSAGE TO OUR COMMUNITY
COMMUNITY ORGANIZATIONS & EVENTS
FIRST FEDERAL OFFICERS
Supported 2012–13 Fiscal Year
We proudly celebrate our 90th anniversary as the only locally owned bank headquartered on the North Olympic Peninsula. Since
1923, First Federal has grown to be the 16th largest bank headquartered in Washington.
Excellence in Community Banking is our mission. Through fostering an understanding of your needs we strive to develop an offering
of financial products and services to help achieve your financial goals. Being local, we actively pursue innovative solutions and
deliver the best banking experience anywhere, with a ‘home town’ touch.
Financial Performance
The fiscal year which ended June 30, 2013 was challenging. While net income improved to $2.3 million for the year, an increase of
$4.3 million over the prior year, it remains below desired levels. We will continue to focus on improving earnings further during this
challenging economic environment.
We were able to achieve modest and balanced growth during the last twelve months. Total assets were approximately $784.5
million at fiscal year-end 2013, up 1.6% from $771.9 million at fiscal year-end 2012. Total equity at June 30, 2013 was $78.6 million,
an increase of 1.7% from $77.3 million at June 30, 2012.
Economic development remains the focus of our attention. We are pleased to report loan growth of $48.7 million or 12.2% during fiscal
2013. Loan growth was the direct result of our teams’ ability to cultivate strong relationships with customers in our historic communities
in Clallam and Jefferson counties as well as successful efforts in our newer communities of Kitsap and Whatcom counties.
Deposit growth of $11.8 million or 2.0% in 2013 resulted from the efforts of our relationship bankers deepening existing
relationships as well as developing new relationships.
The Future
We are enthusiastic and optimistic about the year ahead. In the coming months we will focus on our strategic plan to continue the
transition into a high performing, publicly owned, independent community bank.
We remain well capitalized, safe and sound. However the additional expense of new regulations, compliance, and technology loom
large making it important to optimize our operational structure. Having a broader base over which to spread those costs will enhance
our ability to achieve our mission.
The Board, management and staff remain committed to our customers. We believe our efforts truly make a difference in the
communities in which we live and work.
Sincerely,
Richard Kott
Chairman
Larry Hueth
President and CEO
AAUW and UWF Scholarships
Alternatives to Hunger
Alzheimer’s Association
American Cancer Society
American Red Cross
Boy Scouts of America
Boys & Girls Club of America
Cape Flattery School
Captain Joseph House Foundation
Centrum Arts
Chapter EP, WA. of the Peninsula
Cherish the Children
Children’s Safety Bureau
City of Sequim
Clallam County 4-H
Clallam County Fair
Clallam County Homeless
Community Chorus of Port Angeles
Concerned Citizens
Crescent Booster Club
Crescent High School Senior Class
Crescent School District
Dick Brown Memorial Tournament
Dream Playground Foundation
Dungeness Crab & Seafood Festival
Dungeness River Audubon Center
Dungeness Valley Health & Wellness Clinic
ESP Extreme Sports Park
Feiro Marine Life Center
Forks High School Football Boosters
First Step Family Support Center
Forks Community Food Bank
Forks Community Hospital Foundation
Forks Fastpitch Allstars
Forks High School
Forks Merchants Co-ed Softball
Forks Old Fashioned 4th of July
Fred Orr Memorial
Friends of Chimacum School
Funnybone Foundation
Future Riders Youth Football
Gathering Place
Habitat for Humanity of Clallam County
Healthy Families of Clallam County
Helen Haller PTO
Homes for Our Troops
Hurricane Ridge Winter Sports Club
Jamestown S’Klallam Tribe Wellness Program
Jefferson County Fair
Jefferson County Food Bank
Jefferson County Historic Society
Jefferson County Library
Jefferson Elementary School
Joyce Community Education
Joyce Daze Royalty
Juan de Fuca Festival of the Arts
Key City Players
Kiwanis Club of Port Townsend
Knights of Columbus
KSQM Radio
League of Women Voters
Lifetouch National School
Mt. Olympus Detachment #897
National Alliance on Mental Disabilities
NatureBridge
Naval Elks Lodge #353
North Kitsap Fishline
North Olympic Baseball
North Olympic Foster Parent Association
North Olympic Modelers Society
North Olympic Mustang Club
Northwest Maritime Center
Olympic Christian School
Olympic Logging Conference
Olympic Medical Center Foundation
Olympic Mountain Wrestling
Olympic Peninsula Academy PTO
Olympic Peninsula Chapter
Olympic Peninsula Humane Society
Olympic Peninsula Salmon
Operation Uplift
Peninsula Behavioral Health
Peninsula Chamber Singers
Peninsula College
Peninsula Driftwood Artists
Port Angeles Chamber of Commerce
Port Angeles Downtown Association
Port Angeles Education Foundation
Port Angeles Farmers Market
Port Angeles Fire Department
Port Angeles Food Bank
Port Angeles Football Club
Port Angeles High School
Port Angeles Lady Roughriders
Port Angeles Light Opera
Port Angeles Marching Band
Port Angeles School District
Port Angeles Senior Community Center
Port Angeles Swim Club
Port Angeles Symphony Orchestra
Port Townsend Community Orchestra
Port Townsend Education Foundation
Port Townsend Elks Scholarship
Port Townsend Film Festival
Port Townsend Food Bank
Port Townsend Little League
Port Townsend Main Street
Port Townsend Marine Science Center
Port Townsend Public Library
Port Townsend Redskin Boosters
Puget Sound Anglers North
Queen of Angels School
Quillayute Valley School
Radio Port Townsend KPTZ
Rain Shadow Chorale
Readers Theatre Plus
Retired Senior Volunteer
Rhododendron Festival Association
Runners Parent Group
Sequim Arts
Sequim Association of REALTORS®
Sequim Balloon Festival
Sequim Dungeness Valley Chamber of Commerce
Sequim Elks Lodge
Sequim Food Bank
Sequim High School
Sequim High School Band Booster
Sequim Irrigation Festival
Sequim Jr. Babe Ruth League
Sequim Junior Soccer
Sequim Lavender Growers Association
Sequim Lavender Farmers
Sequim Little League
Sequim Senior Meals Program
Sequim Senior Services Center
Sequim Wrestling
Sequim Youth Basketball League
Serenity House of Clallam County
Songwriting Works
Soroptimist International Port Angeles
St. Vincent de Paul
Story People of Clallam County
Sunfield Education Association
Trey Green Guild
United Way of Clallam County
Volunteers in Medicine of Clallam County
Washington Business Week
West End Business and Professional Development
West End Thunder
Wooden Boat Foundation
YMCA of Clallam County
Richard Kott
John Locke
Morgan Fox
Chairman, Board of Directors
Vice President/Commercial Relationship Manager
Assistant Vice President/CRA Officer
Stephen Oliver
Kammah Morgan
Paula Johnson
Vice Chairman, Board of Directors
Vice President/Special Assets Manager
Assistant Vice President/Information Security Officer
Gerad Nucci
Patti Kelley
Larry Hueth
Vice President/Lending Relationship Team Leader
President and Chief Executive Officer
James Preston
Assistant Vice President/
Business Development Officer
Christopher Donohue
Vice President/Commercial Credit Administrator
Executive Vice President/Chief Credit Officer
Christie Sharpe
Elaine Gentilo
Vice President/Controller
Kathi Larsen
Executive Vice President/Chief People Officer
Kent Sommerfeld
Kelly Liske
Vice President/Facilities Manager
Assistant Vice President/Loan Officer
(NMLS# 413364)
Executive Vice President/Chief Banking Officer
Laurie Szczepczynski
Joyce Ruiz
Executive Vice President/Chief Administrative
Officer/Corporate Secretary
Vice President/Business Development Specialist/
Downtown, Eastside, Administration Drive-Up
Branch Manager
Regina Wood
Dawnya Textor
Executive Vice President/Chief Financial Officer/
Treasurer
Vice President/Director of Retail Banking
Kendra Waggoner
Brett Bies
Senior Vice President/Information Technology Officer
Vice President/Mortgage and
Consumer Credit Administrator
Assistant Vice President/
Commercial Relationship Manager
(NMLS# 413365)
Ed Brady
Teresa Ward
Julie Myers
Senior Vice President/Chief Risk Officer/
Compliance and BSA Officer
Vice President/Mortgage Department Manager
Kim Romberg
Vice President/Loan Operations Manager
Jennifer Woodin
Senior Vice President/Bank Operations Officer
Shaila Allen
Roberta Lang
Assistant Vice President/Loan Underwriter
Laurie Liske
Assistant Vice President/
Port Townsend Branch Manager
Jesse Long
Assistant Vice President/
Sixth Street Branch Manager
Jon Murock
Assistant Vice President/Loan Officer
(NMLS# 162954)
Kasi O’Leary
Assistant Vice President/
Credit Financial Reporting Analyst
Lisa Due
Assistant Vice President/Loan Underwriter
Misty Palmer
Vice President/Retail Operations Manager
Vickie Blanton
Tyanna Gadbaw
Assistant Vice President/
Senior Human Resource Generalist
Assistant Vice President/Budget Reporting/
Fiscal Analyst
Vice President/ Operations/
Electronic Delivery Manager
Elisabeth Britt
Traci Pederson
Assistant Vice President/Forks Branch Manager
Lisa Pluard
Vice President/Loan Servicing Supervisor
Assistant Vice President/Loan Officer
(NMLS# 152147)
Gloria Hacko
Michelle Catton
Christine Rookard
Assistant Vice President/
Systems and Services Supervisor
Assistant Vice President/
Sequim Avenue Branch Manager
Anna Coburn
Terri Wood
Assistant Vice President/
Consumer Loan Administrator
Assistant Vice President/Loan Officer
(NMLS# 413367)
Jackie Gold
Vice President/Internal Audit
Diane Harrison
Vice President/Training and Employee
Development Manager
Dave Huck
Assistant Vice President/Chief Appraiser
Vice President/Commercial Relationship Manager
Dwight Jeppson
Vice President/Commercial Relationship Manager
Jeanine Lee
Vice President/Marketing and Corporate
Communications Manager
CORE VALUES
Community • Excellence • Collaboration • Integrity • Accountability
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FIRST FEDERAL 2013 ANNUAL REPORT
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FIRST FEDERAL 2013 ANNUAL REPORT
2
BOARD OF DIRECTORS (L–R):
Joyce Ruiz, Corporate Secretary; David Flodstrom;
Cindy Finnie; Larry Hueth, President/CEO;
Richard Kott, Chairman; David Blake;
Jennifer Zaccardo; Lloyd Eisenman;
Stephen Oliver, Vice Chairman
10/9/13 12:40 PM