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Mike Traveller joined First Federal Bank 38 years ago. Throughout his time here, he's never seen a single decision where the bank didn't put its customers first.

"Sometimes that's at our expense," he says. "But it is the right thing to do."

That consistency—across Mike's entire career, through leadership changes and countless opportunities to convert—comes from a structure many Idahoans may not know much about. First Fed is a mutual bank. The only one left in the state.

A Different Kind of Ownership

The concept is simple: the depositors are the owners.

"We don't have shareholders or investors to satisfy," Mike explains. "We just have to satisfy our customers."

That alignment changes everything. Loan and deposit rates can be more competitive because profits don't flow to Wall Street. Community investments don't require shareholder approval.

During the pandemic, this customer-first approach proved its worth. "When stimulus programs and PPP loans added considerable money into the banking system, many banks paid little or no interest on deposits," Mike recalls. "But as a mutual, we felt an obligation to offer our customers competitive rates."

When First Fed invested roughly $1 million for a handicap accessible park in Twin Falls, the decision came naturally. "It is consistent with our mission to enhance the well-being of our customers,” Mike says.

The same freedom enabled the First Federal Foundation. Started 23 years ago, it continues to grow and now distributes over $100,000 annually to worthwhile community projects. The Foundation Board—made up of employees and community members—reviews over 200 applications a year, awarding more than 30 grants each year. Since its inception, the Foundation has donated over a $1.6 million dollars to Magic Valley and Treasure Valley communities.

Why Others Converted

Being Idaho's only mutual bank raises an obvious question: why are there no others??

"It's a challenging model at times," Mike admits. "Especially if you are in a growth mode."

Mutual banks grow the old-fashioned way—a dollar at a time through retained earnings. They can't issue stock for quick capital.

Even though opportunities come up over the years to convert to a stock-held bank, generation after generation said no. Mike calls it part of First Fed’s DNA, ever since the bank first opened its doors in Twin Falls.

"Putting the customer first is a luxury that we have," Mike says. "Shareholder demands don't supersede customer needs."

That luxury appears in unexpected moments. When customers face challenges they weren't prepared for, First Fed is more flexible with solving problems than a typical bank. "In a stock-held bank, that's not always the case," Mike notes. "Sometimes they'll have a corporate structure that doesn't allow them to do what's best for the customer."

The structure also shapes innovative products designed to build financial habits rather than just capture transactions. In addition, First Fed also emphasizes local control—board members and leadership live in the Magic Valley and Treasure Valley, shopping at the same stores and facing the same economic realities.

"We do business with our neighbors and friends," Mike says.

That local presence proves invaluable when economic cycles shift.

Maintaining a mutual charter requires something rare: leaders willing to put customers over profits. "That takes discipline," Mike says. "In your leadership teams and your board over the years—to all grasp onto this concept and embrace it."

The discipline has held for over a century. Mike has spent 38 of those years watching it work, and the consistency of that customer-first approach is what he values most.

"We want to be around another 100 years," he says, "still contributing to our communities and making this a better place to live."