First Republic Bank in San Francisco has sold its student loan repayment business to E-Trade Financial.
The $111 billion-asset First Republic disclosed on Monday that it sold Gradifi for $30 million. The sale will increase the bank's tangible common equity by $26.8 million.
First Republic said it will remain a lender in the Gradifi Refi student loan refinance marketplace. The bank will continue to provide Gradifi’s student loan pay-down and college save-up benefits to its employees.
First Republic bought Gradifi in December 2016.
A First Republic spokesman said the bank is keeping its student loan refinancing business. He said that business has brought in $2.5 billion in loans and $800 million in deposits.
