First Republic Bank 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 for the company on Jan. 1.
Roffler is taking over as acting co-CEO after Hafize Gaye Erkan 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,” Jim Herbert, founder and co-CEO of First Republic Bank, who is on medical leave, said.
First Republic Bank has engaged Korn Ferry, a management consulting and recruiting firm, to lead the search for its next CEO.
“We are very pleased that Mike has agreed to serve as acting co-CEO during this interim period,” George G.C. Parker, who became acting chairman of the board for First Republic Bank on Jan. 1, and Reynold Levy, lead independent director for First Republic Bank’s board, said in a joint statement. “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.”
“Mike is an accomplished and caring leader who deeply understands First Republic’s culture and business,” Herbert said. “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,” Roffler said. “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,” Erkan said. “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, First Republic Bank’s current chief accounting officer, was named acting CFO. Tsokova joined First Republic Bank in 2015. Previously, she served for more than 10 years at City National Bank, including as its chief accounting officer, and more than 10 years prior to that in the financial services audit practice at Ernst & Young.
First Republic Bank also reported selected preliminary, unaudited financial information for Q4/21 2021 overall. As of Dec. 31, 2021, the bank’s total loans outstanding grew by approximately 20% from Dec. 31, 2020, and approximately 5% from Sept. 30, 2021. The bank’s total deposits as of Dec. 31, 2021, grew by approximately 36% from Dec. 31, 2020, and approximately 7.5% from Sept. 30, 2021. The bank estimates that net charge-offs will be approximately $100,000 for Q4/21 and approximately $2 million for all of 2021, or fewer than one basis point of average loans for the year ending Dec. 31, 2021. In addition, the bank’s nonperforming assets are currently estimated to be eight basis points of total assets at Dec. 31, 2021. This preliminary financial information is unaudited and remains subject to completion of the bank’s financial closing procedures.
