Wash. bank rocked by scandal chooses new CEO

Core Insights - First Northwest Bancorp has appointed Curt Queyrouze as CEO, effective September 17, following the resignation of Matthew Deines amid legal issues related to a Ponzi scheme [2][3][10] - The bank is currently facing allegations of abetting a $200 million Ponzi scheme orchestrated by one of its borrowers, Water Station [7][12] - Queyrouze brings extensive experience, having previously served as president of Coastal Financial and CEO of TAB Bank [2][10] Company Background - First Northwest Bancorp is the holding company for First Fed Bank, with total assets of $2.2 billion [2] - The bank reported a $9 million loss for the quarter ending March 31, which included a legal reserve of $5.8 million in anticipation of a settlement [4] - The bank settled a lawsuit with Water Station investors for an amount between $2.87 million and $5.74 million, without admitting wrongdoing [3][4] Leadership Transition - Curt Queyrouze was selected after a comprehensive search process, praised for his performance and community dedication [5][10] - Geraldine Bullard, who served as interim CEO, will return to her role as executive vice president and COO [10] Legal and Regulatory Issues - First Northwest intends to dispute allegations made by 352 Capital, a hedge fund that filed a $106 million lawsuit against the bank [4] - The Ponzi scheme involved Water Station raising over $200 million from investors, with many promised machines allegedly not existing [12]