News

On behalf of the Board and employees of First Federal, it is my privilege to present the annual President’s Report on the activities of the Bank for 2025.

Some parts of my report may sound familiar. That’s a good thing. While we operate in an industry and an economy that constantly evolve, our mission and core principles remain steady. We continue to adapt to a changing environment, but the foundation of our business is built on the things that do not change. I’ll speak more about those in a moment.

As you heard in Mike Traveller’s Treasurer’s Report and Shane Jenkin’s Asset Quality report, First Federal had a successful 2025 in terms of financial performance and condition. As a financial institution, that matters. The safety and soundness of the Bank is our basic contract with you. Strong operating performance is essential to our ability to grow and invest in the people and technology needed to serve you well into the future.

Equally important, however, is that First Federal had a successful year in terms of customer and community impact.

What I hope you take away from my comments today is that First Federal continues to be the right choice for your banking. Let me share a few reasons why.

1. Your Money Is Safe at First Federal

• FDIC?insured deposits remain the safest place to hold your money. Not a single cent of FDIC?insured deposits has ever been lost.
• For customers with deposits exceeding FDIC limits, we offer excellent products that provide full insurance coverage. Today, we have nearly $120 million in reciprocal deposits, partnering with other banks to insure balances beyond standard limits.
• As Mike mentioned, First Federal remains a safe and sound financial institution. As a true community bank, we stick to the basics: safeguarding your deposits and lending responsibly in our communities. And as a mutual bank, we face no pressure or incentive to pursue imprudent profits or growth.
• We have been disciplined in our growth over the past couple of years and focused on building a strong, durable balance sheet able to withstand unexpected economic environments.

So I can confidently say: your deposits are safe at First Federal.

2. As a Mutual Bank, Our Mission Is to Enhance Your Financial Well?Being

This is why we exist. We are not driven by shareholder returns or by balancing the competing interests of stockholders and customers. We are aligned with your financial well-being — and that clarity guides our decisions.

Here are a few examples:

Helping Customers Build Savings

A crucial first step in financial well-being is having adequate savings for life’s unexpected moments. To support customers in developing that foundation, we launched a Savings Bundle that includes Rewards Checking, Round?Up deposits, and a Super Saver account.

• This gives customers a high-yield checking option, automatically rounds up debit card purchases, and deposits the difference into savings.
• In the second half of 2025, we opened nearly 500 new Savings Bundles.
• Over 2,300 customers used Round?Up, contributing nearly $350,000 to savings accounts.

It’s a simple, automated way to build healthy savings habits.

Supporting First-Time Homebuyers

Homeownership is another major step toward long?term financial well-being, offering stable housing costs and the opportunity to build equity. In 2025, we helped 118 families purchase their first home — each with their own story and goals.

• One young family, living with relatives and wanting a place of their own, worked with Mortgage Loan Originator Randi Beachy. Using the FHLB of Des Moines’ Mortgage Rate Relief Program and a HomeStart grant, they purchased a home with less than $2,000 down and an affordable monthly payment.
• Another example is a local kindergarten teacher referred to Mortgage Loan Originator Tyler Bringhurst. She felt overwhelmed and unsure if buying a home was financially possible. After exploring her goals and budget, Tyler determined she qualified for the Mortgage Rate Relief Program. She closed on her home with excitement — now building equity and financial stability for her future.

The First Fed Difference

We regularly celebrate First Fed Difference stories — real examples of employees enhancing customers’ financial well-being, providing exceptional service, or demonstrating outstanding teamwork. They reinforce our mission and help shape our culture.

One such story, shared by Commercial Loan Officer Arely Lujano, involved an elderly customer struggling financially after her husband’s passing. Commercial Team Leader Kevin Welch, sat down with her, listened, and guided her through options to improve her financial situation. His compassion and dedication demonstrated First Federal’s mission of enhancing the financial well-being of those we serve.

3. As a True Community Bank, We Invest in the Health of Our Communities

Southern Idaho is our home. Healthy communities are good for business — but more importantly, they create a place where people want to live, work, and build a future.

• Our most important contribution will always be our role as a financial intermediary — safeguarding your deposits and relending them to support local businesses and homebuyers. There is a saying that, “behind every great community is a great bank.” That describes First Federal’s impact well.
• In 2025, we originated $283 million in new business loans, supporting growth and economic opportunity.
• We financed the construction of over 250 new homes. As we know, housing supply and affordability have been a challenge over the past several years in southern Idaho. First Federal has been a leader in residential construction financing for more than 100 years.
• Through the Bank and the First Federal Foundation, we contributed over $750,000 in donations, sponsorships, and grants. Organizations we supported include:
• The Boys and Girls Club of the Magic Valley
• The Savvy Women and Money Conference
• The Scramble Fore Books Golf Tournament supporting the Twin Falls Library Foundation
• Our employees continued giving back to the community by volunteering their time, serving on boards, and supporting local causes.
• We also continue to be a leader in supporting regional economic development efforts, recognizing that economic opportunity is the first rung on the ladder to financial well-being.

As you can see, First Federal is a true community bank.

Once again, I hope I have reaffirmed why First Federal continues to be the right choice for your banking. But you don’t have to take my word for it — Forbes named First Federal the Best Bank in Idaho for the third consecutive year. And I think they’re right.

Thank you for being First Federal customers. As Idaho’s only mutual bank, this truly is your bank, and your relationship is our most valued asset. Our mission will continue to be providing you with an exceptional banking experience and helping you enhance your financial well-being.