Where were they going to find a full-service banking charter? Converting its industrial thrift charter in California into a bank charter was not realistic; it would be too expensive and time-consuming. There had to be a better solution.

First Republic turned its attention to Nevada. Herbert had used a presence in Nevada to convert San Francisco Bancorp into a multi-state organization in the early 1980s. In 1996, his team set about leveraging First Republic’s activities in Nevada to drive change. It would turn out to be a very good bet.

First Republic retained the Las Vegas law firm of Lionel, Sawyer and Collins, and its financial services team led by partner Dan Reaser, to help make its case. First Republic’s goal was to convert the former Silver State Thrift it had purchased in Nevada into a state-chartered bank. Herbert worked on drafting the proposal and then lobbied the Nevada Bankers Association to support the proposed legislation, which would put state banks more on a par with national banks in terms of product offerings. The Bankers Association threw its weight behind the idea, saying it would even the playing field.¹ First Republic sponsored the effort by covering most associated costs, and Herbert testified before the Nevada Senate Banking Committee upon introduction. In July 1997, this banking reform bill passed and was enacted into law.²

First Republic had executed a reverse merger of its much larger California holding company into the Nevada bank in 1996. Once the new law took effect, the entire company could then operate under a Nevada state bank, rather than an industrial thrift, charter. The only thing that would change for First Republic’s clients: a noticeable increase in the number and variety of banking products and services offered – indeed, as broad an offering as a national bank could provide – over time.