First Foundation, the Dallas banking company beset by a string of executive departures, said it had promoted several insiders to fortify its leadership ranks as it braces for a period of slower growth.
The $12.3 billion-asset company named Christopher Naghibi, formerly chief credit officer of First Foundation Bank, as its new chief operating officer. He replaces Lindsay Lawrence, who resigned last week. Lillian Gavin, who was deputy chief credit officer of First Foundation Bank, was appointed chief credit officer.
Additionally, Hugo Nuño, who was chief risk officer of the bank, was appointed to the newly created role of chief banking officer. Marsha Vick, who was director of audit, was named chief risk officer.
"Like many financial services companies, we are actively optimizing our workforce, identifying the right talent for critical positions, and realigning the organization to best execute against our commitments to clients and shareholders," Scott Kavanaugh, First Foundation's president and CEO, said in a release announcing the changes Tuesday.
The promotions follow a
At the time, Kavanaugh assumed the role of president, while Chief Accounting Officer Amy Djou took on CFO duties on an interim basis so that First Foundation could search for a permanent replacement.
The company did not provide reasons for the changes, but analysts linked the moves to First Foundation's recent decision to pull back on loan growth as it adjusts to rising deposit costs. The executives who resigned likely left to pursue opportunities elsewhere, analysts said at the time.
Thompson was
First Foundation is "pursuing its plan of prudently slowing loan growth and curing its elevated" loan-to-deposit ratio of 108% "as quickly as possible," Piper Sandler analyst Matthew Clark said in a report Wednesday. "We continue to expect earnings to be challenged over the next few quarters."
The bank's total third-quarter loans nearly doubled from a year earlier, to about $10.3 billion, but its deposits have not kept pace. Kavanaugh said during a recent earnings call that growth would have to slow as a result.
Clark said some executives were expected to leave as a result, preferring to land at banks better positioned for growth and stronger earnings in the year ahead.
"We believe this is the last of the management changes we will see other than the permanent solution for its CFO," Clark said. "The newer senior management team has also been with First Foundation for a number years and are likely more committed/aligned with CEO Scott Kavanaugh, in our view."
