First Republic Bank in San Francisco plans to raise up to $230 million from an offering of common stock.
The $55 billion-asset bank plans to use the proceeds to fund loans or purchase investment securities, according to a Monday news release. First Republic will issue 3 million shares at $66.33 per share; the offering includes a 450,000-share overallotment option. The sale is expected to close by Friday.
First Republic's purchase of investment securities would likely consist of U.S. Treasury bills or similar securities that would count toward the new liquidity coverage ratio rule, which the Fed finalized in September 2014, Aaron James Deer, an analyst at Sandler O'Neill, wrote in a Tuesday research note.
First Republic said in June that it had agreed to acquire Constellation Wealth Advisors for about $115 million.
Bank of America Merrill Lynch, Goldman Sachs, JPMorgan Chase and Morgan Stanley are managing the offering. Sullivan & Cromwell is legal counsel to First Republic.