News & Press

Statement on Current Banking Environment

May 1, 2023

To the clients and community of First Federal Savings & Loan,

With the failure of San Francisco-based First Republic Bank over the weekend, I wanted to provide an update to our customers and community. First Republic has faced significant struggles since the March collapse of Silicon Valley Bank and Signature Bank, because they were exposed to common risks, having both extremely high growth rates and concentrations of large, uninsured deposits. On April 24^th, First Republic reported that their core deposits had fallen 58% during the first 3 months of 2023, creating a substantial liquidity event they ultimately could not overcome. In contrast, during that same time period, First Federal saw deposits increase nearly $3 million, supported by a broad and stable customer base.

With the closure of Silicon Valley, Signature, and First Republic all depositors have been made whole, including balances in excess of FDIC insurance limits. The banking system remains safe and healthy, despite these high-profile failures demonstrating business models with concentrated risks that are not representative of how the vast majority of banks operate. While predicting future events is challenging, it appears that the failure of First Republic may close at least this current chapter of uncertainty and disruption within the banking industry.

I want to assure you that First Federal’s financial position remains strong and rooted in stable banking practices. We have been recognized as one the top 100 healthiest banks in the country, and adhere to a traditional banking model that does not participate in the unsafe practices that have led to recent bank failures. We maintain robust and improving liquidity that supports our locally-focused strategy while still providing a safety net should any issues arise. Our loan portfolio and deposit base is diverse and includes consumers, non-profits and small businesses, rather than focusing on one industry and a few large depositors. The credit quality of our loan portfolio has been outstanding in recent years and our capital remains strong and growing. First Federal has access to ample funding sources to meet our current and future customer needs. You can remain confident that First Federal is strong, stable, and poised to assist our customers now and into the future.

As always, we value any questions our customers may have, particularly in light of these recent events. Should you need clarification about your deposits or FDIC insurance, I encourage you to speak directly to one of our team members who are always ready to serve you.

The bottom line is that First Federal has seen no adverse impact of the recent bank failures and it is “business as usual” as we remain ready to meet your deposit and lending needs. First Federal has been an unwavering financial partner within Yamhill County through the Great Depression, Global Financial Crisis, and numerous recessions along the way. We truly value the trust our customers have placed in us, and we will strive to continue to earn our community’s business for generations to come.

Sincerely,
Jim Schlotfeldt
President and CEO

Statement on Current Banking Environment

March 17, 2023

To the clients and community of First Federal Savings & Loan,

I am sure you have heard the news about the closures and receivership of Silicon Valley Bank and Signature Bank by the Federal Deposit Insurance Corporation (FDIC) due to financial distress. Unlike the economic crisis of 2008, these banks were not closed due to problem loans, as instead it was their lack of diversification that led to their downfall. Silicon Valley Bank and Signature Bank had business practices that proved to be unsound, particularly in the current environment of rapidly rising interest rates. What led to the demise of these banks was their extremely high growth rates in recent years coupled with their concentration of large, uninsured deposits from clients in the technology and cryptocurrency industries.

I want to assure you that First Federal’s financial position is strong and rooted in stable banking practices. We are recognized as one the top 100 healthiest banks in the country, and adhere to a traditional banking model that does not participate in the unsafe practices that have led to the recent high-profile failures of financial institutions. We maintain robust capital and liquidity that supports our locally-focused strategy while still providing a safety net should issues arise. Our loan portfolio and deposit base is diverse and includes consumers, nonprofits and small businesses, rather than focusing on one industry and a few large depositors. The credit quality of our loan portfolio has been outstanding in recent years and our capital remains strong. First Federal has access to ample liquidity to meet our customer needs. You can remain confident that First Federal is strong, stable, and poised to assist our customers now and into the future.

Deposit insurance is one of the significant benefits of having an account at an FDIC-insured bank, such as First Federal Savings & Loan. The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. By properly structuring account ownership or adding beneficial owners, the insurance coverage can increase by a multiple of the owners.

Should you have any questions about your deposits or FDIC insurance, I encourage you to speak directly to one of our team members who are always ready to serve you.

First Federal has been an unwavering financial partner within Yamhill County through the Great Depression, Global Financial Crisis, and numerous recessions along the way. With over 100 years serving the Willamette Valley, First Federal provides an unmatched commitment to the community through tailored business and personal banking solutions, as well as award-winning charitable giving and service.

Sincerely,

Jim Schlotfeldt
President and CEO

First Federal To Host Grand Opening Event for Downtown Branch and Corporate Headquarters

August 2021

First Federal Savings & Loan Association of McMinnville plans to host a week-long Grand Opening celebration beginning Monday September 13th at the site of the newly renovated Home Office Branch and Corporate Headquarters at 118 NE Third Street, McMinnville. There will be an exclusive celebration for the opening on September 13th from 5-7pm.

“We are excited to open our McMinnville Home Office branch and Corporate Headquarters and offer our full suite of financial and lending solutions to both residential and business clients in our stylish new space,” said Jim Schlotfeldt, President and CEO, First Federal.

The newly constructed location features a 31,000 square foot building that houses the retail branch, loan center, and executive offices. The building was designed by Portland based studio, SUM Design Studio + architecture and complements the McMinnville downtown aesthetic. Portland based company, R&H Construction, led construction of the project.

The grand opening celebrations will take place September 13-17th from 11-2pm. Festivities include a car show, food truck festival, carnival games, tours, and special giveaways. All are welcome to join during festivities and to meet staff and tour the new building. Please visit www.FirstFedWeb.com for more Grand Opening information.

Pamela Lum Announced as New Board Member

July 2021

First Federal is pleased to announce Pamela Lum as the newest member of the First Federal Savings & Loan Association of McMinnville’s Board of Directors, effective June 2021. Ms. Lum brings a wealth of economic and executive management expertise combined with leadership experience in the financial and auto industry. She has served in leadership roles in the financial services industry for over 20 years, specifically in commercial banking, cash management, and wealth management. She most recently joined the family business and expanded to the McMinnville area by opening Lum’s Buick, GMC, and Cadillac. The Lum family also operates Lum’s Auto Center specializing in Toyota, Chrysler, Jeep, Dodge and Ram on the Oregon Coast and, most recently, added Walla Walla Toyota in Walla Walla, WA.

“Along with the First Federal Board of Directors, I am delighted to see Pam come on board. Pam understands and shares our values, and her remarkable background in the industry, executive management, and community leadership make her an excellent fit for this position,” said Jim Schlotfeldt, CEO and President.

Ms. Lum has a long history of community service in Oregon. She has served as a Board Member of the Friends of the Astoria Column, a Columbia River Maritime Museum Trustee, an Oregon Community Foundations North Coast Leadership Council Advisor, a Multnomah County Library Trustee, and as a Board Member of Morrison Child and Family Services.

Ms. Lum currently serves as an MV Advancements Board Member, an Oregon Community Foundation Northern Willamette Valley Leadership Council Advisor, and a McMinnville Area Chamber of Commerce Board Member.

You Voted, We Donated!

March 2021

First Federal is donating $40,000 again this year based on votes received by First Federal customers. The annual Customer Ballots program concluded on February 28th and checks are being delivered to 95 Yamhill County nonprofits. In the past 23 years, First Federal has given $880,000 to Yamhill County nonprofits voted on by First Federal customers. “We believe in the work of our nonprofits and are happy to donate funds to those organizations where our customers have a heart for the mission,” said Jim Schlotfeldt, CEO/President of First Federal. Service areas receiving the largest number of votes were Youth Education/Development and Food Banks/Shelters.

More information and recipient list

Sara Meyer Promoted to Sheridan Branch Manager

January 2021

Sara Meyer has been promoted to Branch Manager of the First Federal Savings and Loan Association Sheridan Branch located at 246 S Bridge Street. Sara was previously the Branch Operations Manager of the Sheridan Branch where she focused heavily on day-to-day branch responsibilities and team development.

In her role as the Sheridan Branch Manager, she is responsible for directing all operations including customer service, business development, administration, and community support. She is additionally responsible with bringing out the best of branch’s personnel by providing training, coaching, development, and motivation.

Meyer is a native Oregonian and is heavily involved in the Carlton Community Foundation, the City of Carlton Budget Committee, and the Sheridan Chamber of Commerce.

“The Sheridan Branch will benefit greatly from Sara’s leadership,” says Ron Wolfe, Chief Banking Officer. “Sara is a great example of hard work and perseverance paying off. I’m excited to see her take ownership of our Sheridan branch and become a leader in the community.”

Please join us in congratulating Sara to her new role within First Federal!