Days after one of First Republic Bank’s co-CEOs took a medical leave of absence, the other co-CEO has resigned.
The San Francisco-based bank, which has five Greater Boston locations, said in a statement yesterday that Hafize Gaye Erkan has resigned as co-CEO and from the bank’s board of directors “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,” Jim Herbert, the bank’s founder and other CEO, said in the statement. “We wish her all the best, personally and professionally,”
The bank had announced last month that Herbert would take a medical leave of absence related to a coronary health issue. The leave began on Jan. 1, and Herbert also stepped down from his role as board chair. The bank said it expects Herbert to be reappointed to the board when he returns from medical leave.
The bank had expected Erkan to continue her role as co-CEO, saying in last month’s statement that she would assume additional responsibilities during Herbert’s absence. She had joined First Republic in 2014, becoming president in 2017, a board member in 2019 and co-CEO in 2021.
“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 in the statement. “I want to thank my colleagues for their hard work and dedication, and I wish them continued future success.”
Mike Roffler, First Republic’s chief financial officer, was named president last month and then appointed acting co-CEO yesterday. Roffler was also appointed to the board of directors. He joined First Republic in 2009 and has served as CFO since 2015.
“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.”
Olga Tsokova, the bank’s current chief accounting officer, has been named acting CFO. Tsokova joined First Republic in 2015. George G.C. Parker became acting chairman on Jan.1.
“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.”
First Republic has three branches in Boston and one each in Cambridge and Wellesley. Before mergers and acquisitions reshaped Massachusetts banking landscape in the second half of 2021, First Republic had Massachusetts’ fifth largest deposit share, according to the FDIC’s summary of deposits report, which captures bank deposits annually on June 30.
The bank has hired management consulting and recruiting firm Korn Ferry to lead the search for First Republic’s next CEO.
