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.
