Dive Brief:
- First Northwest Bancorp and First Fed Bank have chosen Curt Queyrouze as the next CEO and president of both the bank and holding company, the bank said Friday. Queyrouze starts Wednesday.
- Geraldine Bullard, who had been the Port Angeles, Washington-based bank’s interim CEO since July, when former CEO Matthew Deines resigned, will return to her previous post as chief operating officer.
- For the past three years, Queyrouze, 64, has been president of Coastal Community Bank in Everett, Washington. Prior to that, he was president and CEO at TAB Bank in Ogden, Utah, for about eight years, according to his LinkedIn profile.
Dive Insight:
Queyrouze, who’s spent about 40 years in the financial services industry, will also gain a seat on the board of directors of both First Northwest and First Fed.
“First Fed has a remarkable 100-year-plus history, and my goal is to honor that by continuing to deliver long-term value for our shareholders and by building a modern, forward-thinking financial institution that remains a trusted partner for our communities,” Queyrouze said in a news release.
The $2.2 billion-asset bank’s selection of Queyrouze followed an “exhaustive” search process, said Cindy Finnie, chair of the board of First Northwest and First Fed.
“His history of proven leadership, his focus on data-driven decision-making, and his commitment to creating long-term value for our shareholders made him the clear choice for the future of the Company,” Finnie said in a news release. “Curt’s sterling performance leading financial institutions, combined with his clearly demonstrated dedication to his community, made him the obvious choice among a field of exceptionally strong candidates.”
Deines resigned one month after the bank was sued by Jefferies hedge fund 352 Capital Group over an alleged fraud scheme involving water vending machine company Water Station.
352 Capital, seeking $107 million, claims the bank was aware of the purported fraud and abetted it, prioritizing repayments of its own loans to Water Station and the company’s franchisees. The bank “strongly disputes” the allegations and maintains in its latest quarterly filing that it will vigorously defend against the claims.
Days after Deines’ July resignation, the bank reached a settlement with some Water Station investors. First Fed agreed to pay between $2.87 million and $5.74 million, according to the quarterly filing. In the first quarter, the bank had set aside $5.8 million for the matter.
Queyrouze will serve as president and CEO through 2028, subject to extension agreed upon by both parties, according to a Friday securities filing. He will receive a $550,000 base salary and a $100,000 signing bonus. He’ll also receive 50,000 shares of restricted stock that will vest on the first three anniversaries of the grant date; he’ll have to retain at least half of the shares that have vested, according to the award terms.
Next year, Queyrouze will be eligible for short-term incentive awards with an annual target of 50% of his base salary, as well as long-term incentive awards with an annual target of 35% of his salary, according to the filing.
Water Station’s alleged $200 million Ponzi scheme has also ensnared Celtic Bank. Investors contend Salt Lake City-based Celtic Bank aided the water vending machine company’s plan by taking advantage of the Small Business Administration’s lending structure and becoming “an active participant” in the scheme.
