PORT ANGELES — First Fed announced in an earnings release Thursday that it had laid off 20 full-time employees, about 9 percent of the Port Angeles-based bank’s workforce, across the organization as a cost-saving measure.
“It was a hard decision that we don’t take lightly,” Chief Executive Officer Matt Deines said. “It’s never something that you want to have to do, but we felt that for the long-term strength and health of the organization that we needed to take this action at this time.”
Most of the workforce reductions came in mortgage, construction and commercial lending, administration and support staff. Fewer than half of those let go were Clallam County residents.
Because no frontline staff positions at the bank’s branches were eliminated, customers would not likely feel any impact of the job losses, Deines said.
The layoffs were not a cautionary sign of more cutbacks, he said.
“The bank is in a strong financial position in terms of our balance sheet and our capital, but our earnings have been very challenged given the economic environment and the interest rate environment,” Deines said. “About about two months ago it became pretty clear that we were going to need to reduce expenses.”
This was the second time in two years First Fed has eliminated jobs. A smaller reduction in force occurred in 2022 when the bank cut positions as part of its efforts around “right-sizing” its revenue and costs in anticipation of an economic slowdown.
Deines said First Fed was assisting those who lost their jobs by extending their benefits for an additional month and providing outplacement services such as career coaching and resume writing.
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Reporter Paula Hunt can be reached at paula.hunt@peninsuladailynews.com.
