First Republic Bank in San Francisco said certain shareholders, including members of its management team, will sell up to 11.8 million shares of common stock in a secondary offering.
The $27.8 billion-asset company said on Monday that the shareholders will sell about 10.2 million shares. Underwriters have an option to sell another 1.5 million shares at the public offering price. The bank did not say how much the shareholders wanted for their shares.
First Republic, which provides private banking and wealth management services, will not receive any proceeds from the sale. The company’s stock fell 4.5% on Tuesday, to $30.37 a share.
The bank also said on Monday in a separate press release that the board extended the employment contract for Jim Herbert, its chairman and chief executive. He will remain in these roles until June 2016 and will continue as chairman until December 2019.
First Republic’s president and chief operating officer, Katherine August-deWilde, also entered into an extended agreement. She will become vice chairman in December 2014 and will also serve as a senior advisor focused on the bank’s largest clients through December 2016.
Additionally, Mike Selfridge will join First Republic as a senior executive vice president. Reporting to Herbert, he will focus on opportunities in the San Francisco and Silicon Valley areas and will progressively take on additional leadership responsibilities. He most recently worked at Silicon Valley Bank for almost 18 years.