Bank’s LV branches sold

Kirk Kern

Thursday, Oct. 3, 2002 | 11:13 a.m.

San Francisco-based First Republic Bank is selling its three retail branches in Las Vegas to 1st National Bank of Nevada so First Republic can focus on full-service private banking, investment management and trust services.

1st National will assume about $195 million in retail deposits as part of the deal. The bank branches are at 6700 W. Charleston Blvd., 2510 S. Maryland Parkway and 6420 S. Pecos Road.

All of its Las Vegas loans, private banking deposits and trust business will be retained by First Republic, and associated private banking personnel will remain with First Republic. First Republic's Maryland Parkway location in Las Vegas will continue to service private banking, lending and trust clients.

First Republic spokesman Greg Berardi said the 10 employees at the three branches will transfer to 1st National Bank of Nevada. First Republic will retain two employees for private banking and commercial clients at the Maryland Parkway location.

The transaction is expected to be completed in the first quarter of 2003, subject to regulatory approvals. The transaction cost was not disclosed, but based on current deposit balances and anticipated expenses, First Republic expects an after-tax gain of about $4.5 million.

1st National Bank of Nevada, based in Laughlin, reported $279.6 million in assets for the second quarter ended June 30 and $4.6 million in pre-tax income. First Republic reported $4.56 billion in assets and $5.6 million in second-quarter net income.

First Republic's decision to sell the retail branches is a continuation of its focus on providing private banking and wealth management services. First Republic has opened four branches in California this year and plans to open three more in early 2003. The bank is opening its second New York City office and will consolidate its private bankers and Trainer Wortham investment management personnel into this location in December.

"First Republic continues to see many attractive opportunities in our key markets," Jim Herbert, president and chief executive officer, said in a statement. "Because of the success of our private banking, wealth management and business banking efforts, it makes strategic sense to focus our resources and management on these segments. Our overriding goal is to maintain the high quality client service that distinguishes First Republic from other institutions."

David Groshong, president of 1st National Bank of Nevada, said in a statement the acquisition further establishes 1st National Bank's presence and commitment in the Las Vegas retail banking market and provides an enhanced retail funding franchise to complement 1st National's lending operations in Nevada.

With this acquisition, 1st National Bank of Nevada will have 13 full-service branches statewide, including several at Wal-Mart stores. The bank has more than $500 million in assets.

Following the transaction, First Republic will have 24 full-service banking and wealth management offices in California, two in New York City and one in Las Vegas.