Latest news with #MatthewDeines
Yahoo
15-07-2025
- Business
- Yahoo
First Fed Bank CEO resigns, COO tapped as interim chief
This story was originally published on Banking Dive. To receive daily news and insights, subscribe to our free daily Banking Dive newsletter. First Northwest Bancorp and First Fed Bank CEO Matthew Deines has resigned from his posts, including as a member of the boards, effective Saturday. Geraldine Bullard, the chief operating officer of the company, has been appointed as interim CEO of the Port Angeles, Washington-based entities, effective Sunday, but she will continue in her role as COO, the company said Wednesday. The boards and Deines have 'mutually agreed' on the resignation and that his 'departure is not a result of any disagreement with the Company or the Boards,' the company said in a filing Wednesday with the Securities and Exchange Commission. The boards have appointed an executive search firm to help find the best suitable candidate to take over the helm of the company. 'As we begin the executive search for Matt's replacement, we have full confidence in Geri to lead the organization during this transition,' Cindy Finnie, chair of the boards of First Northwest and First Fed, said in a prepared statement while praising Deines for his service and commitment to the company. 'With deep experience and a strong understanding of First Fed's mission, Geri is well-positioned to provide stable, effective leadership as we conduct a thoughtful and thorough search for a replacement CEO.' Deines' exit comes close on the heels of a lawsuit filed last month by 352 Capital Group LLC, a hedge fund operated by Jefferies Financial Group, against First Fed Bank to recover roughly $107 million along with interest, punitive damages and legal fees. The lawsuit centers on an alleged fraudulent scheme involving Water Station Management, which is in involuntary bankruptcy proceedings in the Eastern District of Washington, the lender said in an SEC filing in June. The complaint alleged that Water Station Management and affiliated entities misappropriated over $100 million from bond investors. The bond proceeds were allegedly used to repay earlier investors and creditors, including First Fed Bank, rather than for the disclosed purpose of expanding Water Station Management's business. First Fed Bank allegedly aided and abetted this fraud, participated in a conspiracy to commit fraud, and was unjustly enriched. 'The Company and the Bank strongly dispute the allegations contained in the Complaint, and intend to vigorously defend against the claims,' First Fed said in the June SEC filing signed by Deines. The company has set aside $5.8 million in legal reserves, established in the first quarter of 2025, while management hopes to recoup at least part of this reserve over time, according to analysts at Piper Sandler. However, they expect additional legal costs if the lawsuit goes to trial. 'While undoubtedly a difficult decision, we can understand the [board's] reasoning behind seeking new leadership given FNWB's challenging last few years, noting Mr. Deines' contract was scheduled to expire in December,' the analysts wrote in their note Wednesday. They are optimistic about a smooth transition and do not expect any near-term strategy impacts, 'as hopefully positive progress unfolds resolving certain ongoing matters.' Deines was elected CEO of the company in August 2019. He has over two decades of industry experience. Prior to joining First Northwest, he was CFO at Liberty Bay Bank and Sound Community Bank in the Seattle area. He has also worked as an audit supervisor at McGladrey & Pullen, according to his LinkedIn profile. 'I could not be more honored to have led First Fed and First Northwest as CEO over the past six years,' Deines said in a statement. 'This Company is made up of a very special group of people who serve Western Washington at a time when the role of community banks has never been more essential.' Under the separation agreement, the outgoing CEO will get $515,000, which is equivalent to one year of base salary, and a payment equal to 90 days of COBRA premiums. Most unvested equity awards will be forfeited without payment, except 5,996 restricted shares granted on March 7, 2025, which will immediately vest in full, the SEC filing said. Additionally, Deines will be paid $250 hourly for cooperation during the transition period. The incoming interim chief received a compensation hike for taking on the interim CEO role. Her salary increased from $143,000 annually to $498,000 during her tenure, which is not to exceed 12 months. She will also receive a retention bonus of $250,000, which will be given if she remains employed through the 61st day following the start of a permanent CEO, according to the SEC filing. Bullard joined the company in 2020 as senior vice president and treasurer. She was promoted to the ranks of executive vice president and COO in March. Before joining First Fed, Bullard served as controller in Salal Credit Union, CFO at First Sound Bank, and controller at Sound Community Bank, where her nearly 18 months of tenure coincided with Deines'. She has also worked as the CFO of The Bank of Washington and as a bank examiner at the State of Idaho. 'I look forward to working closely with the Board, our dedicated management team, and our exceptional employees across Washington as we continue our long-standing commitment to the communities we've proudly supported for over a century,' Bullard said in a prepared statement. Recommended Reading Judge sides with Fed in Custodia master account ruling
Business Insider
10-07-2025
- Business
- Business Insider
First Northwest Bancorp CEO Matthew Deines to resign
First Northwest Bancorp (FNWB) announced that the boards of directors of First Northwest and First Fed and Matthew Deines have mutually agreed that Deines will resign as president and CEO and as a member of the boards of directors of First Northwest and First Fed, effective as of July 12. Geraldine Bullard, COO of the company, has been appointed interim CEO, effective as of July 13. Ms. Bullard will also continue to serve as COO. Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Mint
18-06-2025
- Business
- Mint
Jefferies Sues Regional Bank Over Alleged Water Machine Scam
(Bloomberg) -- A Jefferies Financial Group hedge fund widened its legal fight to recover more than $100 million that its former portfolio manager invested in an alleged fraud scheme involving water vending machines. Jefferies' 352 Capital sued Port Angeles, Washington's First Fed Bank last week in Seattle, claiming the First Northwest Bancorp subsidiary was aware of the alleged fraud. But the bank facilitated the scheme in order to prioritize repayment of its own loans to the machine company and its franchisees, 352 said. The suit is the latest twist in the saga of 352's investment in bonds issued by WaterStation Management, which claimed to operate thousands of filtered water vending machines. According to 352, the Everett, Washington-based company used the money raised to pay guaranteed returns to franchisees and insiders in a 'Ponzi scheme,' as well as to repay loans to First Fed. First Northwest disclosed the suit in a June 13 regulatory filing in which it said it strongly disputes the allegations and intends to 'vigorously defend against the claims.' In a Wednesday interview, First Fed Chief Executive Officer Matthew Deines said he felt there was 'no merit' to the suit against the bank. 'We are a 102-year old community bank,' said Deines. 'This is a Wall Street firm that is trying to recoup funds from this. We were a victim like many others.' WaterStation could not be reached for comment. A Jefferies spokesman declined to comment. The litigation began last year when 352, which is part of Jefferies' Leucadia Asset Management arm, sued former portfolio manager Jordan Chirico. The fund claimed that he conspired with WaterStation to have 352 buy bonds backed by thousand of machines that didn't exist. Chirico has denied the claims. He has suggested in court filings that he was victimized by WaterStation and stressed that all of his investment decisions were reviewed and authorized. He accused his former employer of a 'misguided attempt to assign blame.' The case was dismissed by a federal judge last month, but 352 re-filed its claims against Chirico and others in New York state court on June 9. Neither Chirico nor his lawyer could be reached for comment on the re-filed suit Wednesday. According to 352's suit against First Fed, the bank had access to the machines' serial numbers so would have known they didn't exist. The bank was also in charge of holding the proceeds from the bonds in which 352 invested and facilitated their diversion to other loans. The fund says bond proceeds were only supposed to be used to purchase more machines but instead some were used to repay First Fed's loans, to pay WaterStation insiders or retail investors. At its peak, WaterStation and its related companies owed First Fed $30 minion, according to the suit. In its suit against Chirico, who joined 352 in 2020, the fund claimed he first invested $15 million of its money in WaterStation bonds in April 2022. At that time, 352 claims that Chirico and his wife had already invested $7 million of their own money in WaterStation franchises, a conflict he didn't disclose to his employer. He ultimately invested nearly $107 million of 352's money in WaterStation bonds, the fund claims. The fund also sued WaterStation and several people associated with it, including founder Ryan Wear. Wear couldn't be reached for comment. Last month, the Washington State Department of Financial Institutions brought regulatory charges against WaterStation, Wear and other executives. --With assistance from Yizhu Wang. More stories like this are available on
