First Republic Bank Board of Directors Announces Leadership Transitions
SAN FRANCISCO – (COMMERCIAL THREAD) – The Board of Directors of First Republic Bank (NYSE: FRC) today announced leadership transitions effective January 1, 2022.
Founder, Chairman and Co-CEO Jim Herbert will take medical leave from his leadership role in response to a recent medical referral regarding a coronary artery condition. This leave is in accordance with First Republic Bank policies and will begin on January 1, 2022, for a period currently estimated at six months. Herbert will also be stepping down from the board during this time and is expected to be reappointed to the board upon his return.
“Jim is now the third longest-serving CEO of the S&P 500, ”said Reynold Levy, Lead Independent Director. “He has built a unique culture, consistent profitability and incredible value for our customers, colleagues and shareholders since the founding of First Republic over 36 years ago. The Board of Directors fully supports Jim’s decision to step away from the stress of daily operations and focus on his health.
Hafize Gaye Erkan will continue to serve as Co-CEO and take on additional responsibilities. Erkan has been a part of the leadership team since joining First Republic in 2014. She was appointed President in 2017, Board Member in 2019 and Co-CEO in 2021. Previously, she worked at Goldman Sachs, as Managing Director and Head of Financial Institutions. Group Strats and has over 20 years of experience in finance and banking.
“I am extremely proud of the caring, sincere and customer-centric culture of First Republic, ”said Jim Herbert, Founder, President and Co-CEO. “As a long-time shareholder, I have full confidence in Gaye alongside our formidable management team, the continued consistency and stability of our business model, and most importantly, exceptional colleagues who deliver every day. our culture and our customers at the forefront.
The Board of Directors has appointed Mike Roffler as Chairman, effective January 1, 2022. Roffler joined the company in 2009 and has been its Chief Financial Officer since 2015, with over 25 years of accounting and banking experience including as a partner at KPMG. He will also continue to serve as Chief Financial Officer for an interim period.
“We are delighted to promote Mike to the position of President, ”said George Parker, Board Member. “Mike has been an instrumental cultural and strategic leader at First Republic for over a decade. He is well regarded by shareholders, clients and colleagues, and is a key member of our management team. ”
Effective January 1, 2022, George GC Parker will assume the role of Interim Chairman of the Board of Directors. Parker has been a member of the First Republic Board of Directors since 2003. He is Professor Emeritus at the Stanford Graduate School of Business, where he taught finance and banking for over 30 years. With extensive experience serving on boards of directors and presidents, Parker previously served on the boards of Continental Airlines and Threshold Pharmaceuticals, Inc., among others.
About First Republic Bank
Founded in 1985, First Republic and its subsidiaries provide private banking, corporate private banking and private wealth management services, including investment, trust and brokerage services. First Republic specializes in providing exceptional relationship services and offers a full range of products, including residential, business 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 included in the S&P 500 Index and the KBW Nasdaq Bank Index. For more information, visit firstrepublic.com.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements contained in this press release that are not historical facts are hereby identified as “forward-looking statements” for the purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Any statement regarding our expectations, beliefs, plans, predictions, forecasts, goals, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made using words or phrases such as “anticipates”, “believes”, “may”, “could”, “could”, “may”, “predict”, “Possible”, “” is going “,” estimates “,” plans “,” plans “,” continues “,” in progress “,” expects “,” intends “and similar words or expressions. Therefore, 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 therein.
Forward-looking statements involving such risks and uncertainties include, without limitation, statements regarding: projections of loans, assets, deposits, liabilities, income, expenses, tax liabilities, net income, expenditure on investments or other financial items; expectations vis-à-vis the banking and wealth management sectors; descriptions of management plans or objectives for future operations, products or services; forecasts of future economic conditions in general and in our market areas in particular, which may affect the ability of borrowers to repay their loans and the value of real estate or other property held as security for such loans; our growth opportunities and expansion plans (including the opening of new offices); expectations regarding the performance of any new office; projections on the amount and value of intangible assets, as well as the amortization of recorded amounts; future provisions for credit losses on loans and debt securities, as well as for unfunded loan commitments; changes in unproductive assets; expectations regarding the impact and duration of COVID-19; projections of future levels of loan granting or loan repayments; cost projections, including the impact on our efficiency ratio; and descriptions of the assumptions underlying or related 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 clients, both from traditional and non-traditional financial services and technology companies; our ability to recruit and retain key executives, employees and board members; natural or other disasters, including earthquakes, forest fires, pandemics or acts of terrorism affecting the markets in which we operate; the negative impacts and disruption resulting from COVID-19 on our colleagues and clients, the communities we serve, and the national and global economy, which may adversely affect our business, financial condition and results of operations; interest rate risk and credit risk; our ability to maintain and monitor 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 in general and in our markets; our geographic and product concentrations; demand for our products and services; developments and uncertainties relating to the future use and availability of certain benchmark rates, such as the London Interbank Offered Rate and the 11th District Weighted Average Cost of Funds Index, as well as other alternative reference; the regulatory environment in which we operate, our regulatory compliance and future regulatory requirements; any future changes in regulatory capital requirements; laws and regulations affecting us and the financial services industry, such as the Dodd-Frank Act on Wall Street Reform and Consumer Protection (the “Dodd-Frank Act”), including increasing costs compliance, business limitations and additional capital holding requirements, as well as changes to the Dodd-Frank Act in accordance with the Economic Growth, Regulatory Relief and Consumer Protection Act; our ability to avoid litigation and their associated costs and liabilities; future Federal Deposit Insurance Corporation (“FDIC”) special assessments or changes to regular assessments; fraud, cybersecurity and privacy risks; and the personalized technology preferences of our customers and our ability to successfully execute initiatives related to the improvement of our technology infrastructure, including systems and applications for customers. For a discussion of these and other risks and uncertainties, see the documents filed by First Republic with the FDIC, including, but not limited to, the risk factors in First Republic’s annual report on the form 10-K and any subsequent reports filed by First Republic with the FDIC. These documents 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. All forward-looking statements are qualified in their entirety by reference to factors discussed throughout our public documents under the Exchange Act. Further, any forward-looking statement speaks only as of the date on which it is made, and we do not undertake 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 unforeseen events.