San Francisco-based First Republic Bank commenced a public offering of depositary shares, each representing a 1/40th interest in one share of its noncumulative perpetual series H preferred stock, priced at $25 per depositary share.

Net proceeds will be used to fund the redemption of all the outstanding shares of the company's series B preferred stock, set to be redeemed until June 16. Any additional net proceeds will be used for general corporate purposes, potentially including funding loans or purchasing investment securities for its portfolio.

The company also granted underwriters an option to purchase additional depositary shares.

Merrill Lynch Pierce Fenner & Smith Inc., Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC are acting as joint book-running managers for the offering.