Bank of America (BAC) announced Wednesday that it will sell First Republic Bank (FRPC) to a group of investors, including General Atlantic LLC and Colony Capital LLC, two private-equity firms.

The bank said it had signed a “definitive agreement” which will see the transaction close in the second quarter of 2010, according to a press release. Terms of the deal were not released; however, the Wall Street Journal reported the deal sale should garner BofA more than $1 billion.

Bank of America took on First Republic when it acquired Merrill Lynch & Co. (MER) last fall, and the sale of the bank has long been rumored as a possible way for Bank of America to raise capital and pay back loans received through Treasury’s Troubled Asset Relief Program.

According to the release, First Republic held $19 billion in total assets, $16 billion in deposits and an additional $15 billion in assets under management.