Merrill to Buy First Republic

Moving from one end of the credit spectrum to the other, Merrill Lynch, New York, has agreed to acquire luxury home lender First Republic Bank, San Francisco, in a deal valued at $1.8 billion.First Republic specializes in working with high-net-worth individuals and has expertise in luxury home lending. Merrill Lynch's most recent acquisition was nonprime mortgage company First Franklin, and it was also an investor in the now-defunct OwnIt Mortgage Solutions. The 12th edition of the Mortgage Industry Directory lists First Republic as the 126th-largest lender for 2005, with total production of $2.4 billion (all through the retail channel). As of Dec. 31, 2005, it had a servicing portfolio of $7.8 billion, the MID said. In 2005, First Republic did $71 million in commercial loans (including multifamily, office, hotel, and retail properties). After the deal closes, First Republic will be operated separately as a division of Merrill Lynch Bank & Trust Co. FSB, and its current management team of Jim Herbert, president and chief executive, and Katherine August-deWilde, chief operating officer, will retain their positions. The companies can be found online at http://www.merrilllynch.com and http://www.firstrepublic.com.