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
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.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Statements in this press release that are not historical
facts are hereby identified as “forward-looking statements” for the
purpose of the safe harbor provided by Section 21E of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”).
Any statements about our expectations, beliefs, plans, predictions,
forecasts, objectives, assumptions or future events or performance
are not historical facts and may be forward-looking. These
statements are often, but not always, made through the use of words
or phrases such as “anticipates,” “believes,” “can,” “could,”
“may,” “predicts,” “potential,” “should,” “will,” “estimates,”
“plans,” “projects,” “continuing,” “ongoing,” “expects,” “intends”
and similar words or phrases. Accordingly, these statements are
only predictions and involve estimates, known and unknown risks,
assumptions and uncertainties that could cause actual results to
differ materially from those expressed in them.
Forward-looking statements involving such risks and
uncertainties include, but are not limited to, statements
regarding: projections of loans, assets, deposits, liabilities,
revenues, expenses, tax liabilities, net income, capital
expenditures, liquidity, dividends, capital structure, investments
or other financial items (including the preliminary unaudited
financial information presented in this release); expectations
regarding the banking and wealth management industries;
descriptions of plans or objectives of management for future
operations, products or services; forecasts of future economic
conditions generally and in our market areas in particular, which
may affect the ability of borrowers to repay their loans and the
value of real property or other property held as collateral for
such loans; our opportunities for growth and our plans for
expansion (including opening new offices); expectations about the
performance of any new offices; projections about the amount and
the value of intangible assets, as well as amortization of recorded
amounts; future provisions for credit losses on loans and debt
securities, as well as for unfunded loan commitments; changes in
nonperforming assets; expectations regarding the impact and
duration of COVID-19; projections about future levels of loan
originations or loan repayments; projections regarding costs,
including the impact on our efficiency ratio; and descriptions of
assumptions underlying or relating to any of the foregoing.
Factors that could cause actual results to differ from those
discussed in the forward-looking statements include, but are not
limited to: significant competition to attract and retain banking
and wealth management customers, from both traditional and
non-traditional financial services and technology companies; our
ability to recruit and retain key managers, employees and board
members; natural or other disasters, including earthquakes,
wildfires, pandemics or acts of terrorism affecting the markets in
which we operate; the negative impacts and disruptions resulting
from COVID-19 on our colleagues and clients, the communities we
serve and the domestic and global economy, which may have an
adverse effect on our business, financial position and results of
operations; interest rate risk and credit risk; our ability to
maintain and follow high underwriting standards; economic and
market conditions, including those affecting the valuation of our
investment securities portfolio and credit losses on our loans and
debt securities; real estate prices generally and in our markets;
our geographic and product concentrations; demand for our products
and services; developments and uncertainty related to the future
use and availability of some reference rates, such as the London
Interbank Offered Rate and the 11th District Monthly Weighted
Average Cost of Funds Index, as well as other alternative reference
rates; the regulatory environment in which we operate, our
regulatory compliance and future regulatory requirements; any
future changes to regulatory capital requirements; legislative and
regulatory actions affecting us and the financial services
industry, such as the Dodd-Frank Wall Street Reform and Consumer
Protection Act (the “Dodd-Frank Act”), including increased
compliance costs, limitations on activities and requirements to
hold additional capital, as well as changes to the Dodd-Frank Act
pursuant to the Economic Growth, Regulatory Relief, and Consumer
Protection Act; our ability to avoid litigation and its associated
costs and liabilities; future Federal Deposit Insurance Corporation
(“FDIC”) special assessments or changes to regular assessments;
fraud, cybersecurity and privacy risks; and custom technology
preferences of our customers and our ability to successfully
execute on initiatives relating to enhancements of our technology
infrastructure, including client-facing systems and applications.
For a discussion of these and other risks and uncertainties, see
First Republic’s FDIC filings, including, but not limited to, the
risk factors in First Republic’s Annual Report on Form 10-K and any
subsequent reports filed by First Republic with the FDIC. These
filings are available in the Investor Relations section of our
website.
All forward-looking statements are necessarily only estimates of
future results, and there can be no assurance that actual results
will not differ materially from expectations, and, therefore, you
are cautioned not to place undue reliance on such statements. Any
forward-looking statements are qualified in their entirety by
reference to the factors discussed throughout our public filings
under the Exchange Act. Further, any forward-looking statement
speaks only as of the date on which it is made, and we undertake no
obligation to update any forward-looking statement to reflect
events or circumstances after the date on which the statement is
made or to reflect the occurrence of unanticipated events.
FRC-G
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version on businesswire.com: https://www.businesswire.com/news/home/20220103005148/en/
Investors: Andrew Greenebaum / Lasse Glassen Addo
Investor Relations agreenebaum@addo.com lglassen@addo.com (310)
829-5400
Media: Greg Berardi Blue Marlin Partners
gberardi@firstrepublic.com (415) 239-7826
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