January 2013

The Federal Reserve recently stated that they will continue to implement policies to keep rates at historic lows and not raise them until the nation’s unemployment rate falls below 6.50%.  Nationally, home values in many parts of the country either stabilized or increased somewhat during 2012 as the inventory of unsold homes shrunk. Fortunately home values in our market areas of Yakima, Ellensburg, and Tri-Cities areas have remained relatively stable over the past few years and we were able to continue lending with confidence throughout our branch network. We originated 781 mortgage and consumer loans totaling $144 million during 2012 with 25% of that total in construction loans.  Yakima Federal continues to be one of the only portfolio lenders in our branch network area, meaning we hold and service all of the loans that we originate.  Assets grew by $33 million during the year to $1.79 billion and we remained the eighth largest FDIC insured financial institution headquartered in the state.  At year’s end our capital to assets ratio stood at 19.78% and our ratio of liquid assets to total assets was over 60%, both considerably exceeding regulatory requirements.  On the deposit side of the business, our customers again showed great confidence in Yakima Federal by increasing their deposits by nearly $24 million in the Association during 2012. For the past 107 years we have successfully adhered to our original mission statement of promoting thrift and home ownership.  As we look forward to 2013 and our 108 year anniversary, I would like to sincerely thank you, our loyal customers for your continued patronage.

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- Mike Gilmore
President & CEO