Hafize Gaye Erkan Resigns from First Republic to Pursue Other Opportunities; Korn Ferry Engaged for Continued CEO Succession Planning
First Republic Bank Reports Selected Fourth Quarter and Full Year 2021 Preliminary Unaudited Financial Information
SAN FRANCISCO–(BUSINESS WIRE)–First Republic Bank (NYSE:FRC), a leading private bank and wealth management company, today announced that its Board of Directors has named Mike Roffler Acting Co-CEO of the Company and appointed him to the Company’s Board of Directors. As previously announced, Roffler also began service as President on January 1, 2022.
Hafize Gaye Erkan has resigned as Co-CEO and from the Board in order to pursue other opportunities. “We are grateful for Gaye’s many significant contributions during her tenure as a key member of our outstanding executive team. We wish her all the best, personally and professionally,” said Jim Herbert, Founder and Co-CEO, who is on medical leave.
First Republic’s Board of Directors and senior management have a continuous succession planning process that has resulted in successful executive transitions over time. This process has fostered a new generation of Bank leadership with a focus on maintaining First Republic’s team-oriented, client-centric culture. Korn Ferry, a leading management consulting and recruiting firm, has been engaged to lead the search for First Republic’s next CEO.
“We are very pleased that Mike has agreed to serve as Acting Co-CEO during this interim period,” said George G.C. Parker, who became Acting Chairman of the Board on January 1, 2022, and Reynold Levy, Lead Independent Director. “As a senior member of our executive team, Mike has played a key role in developing our successful strategy and contributing to our unique culture. He is well prepared and qualified to assume this important responsibility. We look forward to working with Mike and the rest of our excellent management team, to continue to take exceptional care of our clients and remain focused on the consistency and stability of our business model.”
Herbert added, “Mike is an accomplished and caring leader who deeply understands First Republic’s culture and business. During his 12 years with First Republic, including the last six as our CFO, he has earned the trust and confidence of our shareholders, clients and colleagues. I am fully confident Mike is the ideal person to lead the Company during this period.”
“It is a privilege to serve as Acting Co-CEO while Jim continues to focus on his health,” said Roffler. “The strength of our client-focused culture begins with the talented colleagues we have across First Republic. It is an honor to work with them and our excellent management team every day. I look forward to leading us through this important interim time period, to ensure consistency and stability for our stakeholders.”
“It has been an honor to serve as Co-CEO of First Republic alongside Jim and our entire leadership team as we’ve worked to build on the Company’s long-term focus on exceptional client service,” said Erkan. “I want to thank my colleagues for their hard work and dedication, and I wish them continued future success.”
In connection with Roffler’s appointment, Olga Tsokova, current Chief Accounting Officer, has been named Acting CFO. Tsokova joined First Republic in 2015. Previously, she served over 10 years at City National Bank, including as its Chief Accounting Officer, and over 10 years prior to that in the financial services audit practice at Ernst & Young.
Selected Fourth Quarter and Full Year 2021 Preliminary Unaudited Financial Information
The Bank today also announced selected preliminary, unaudited financial information for the fourth quarter and year ended December 31, 2021. As of December 31, 2021, the Bank’s total loans outstanding grew by approximately 20% from December 31, 2020 and approximately 5% from September 30, 2021. The Bank’s total deposits as of December 31, 2021 grew by approximately 36% from December 31, 2020 and approximately 7.5% from September 30, 2021. The Bank estimates that net charge-offs will be approximately $100,000 for the fourth quarter of 2021 and approximately $2 million for all of 2021, or less than 1 basis point of average loans for the year ending December 31, 2021. In addition, the Bank’s nonperforming assets are currently estimated to be 8 basis points of total assets at December 31, 2021. The preliminary financial information set forth in this release is unaudited and remains subject to completion of the Bank’s financial closing procedures.
About First Republic Bank
Founded in 1985, First Republic and its subsidiaries offer private banking, private business banking and private wealth management, including investment, trust and brokerage services. First Republic specializes in delivering exceptional, relationship-based service and offers a complete line of products, including residential, commercial and personal loans, deposit services, and wealth management. Services are offered through preferred banking or wealth management offices primarily in San Francisco, Palo Alto, Los Angeles, Santa Barbara, Newport Beach and San Diego, California; Portland, Oregon; Boston, Massachusetts; Palm Beach, Florida; Greenwich, Connecticut; New York, New York; and Jackson, Wyoming. First Republic is a constituent of the S&P 500 Index and KBW Nasdaq Bank Index. For more information, visit firstrepublic.com.