Banking on It - April 2006

Western Alliance Bancorporation

Expanding in Nevada Through Mergers

by Jessica Groach-Santina

It’s not often that a business can more than double its locations in just one month. By the time 2006 was only one month old, that’s exactly what Western Alliance Bancorporation had done. Western Alliance, the regional bank holding company for BankWest of Nevada, announced two separate mergers for its company. It would acquire Intermountain First Bancorp, the holding company for Nevada First Bank, for $108 million, as well as Bank of Nevada for $74 million. Western Alliance paid cash for Bank of Nevada, as well as a portion of Intermountain First. Both mergers are expected to close in the second quarter of 2006, at which point BankWest of Nevada will change its name to Bank of Nevada.

These transactions take BankWest from five locations, all in greater Las Vegas, to 13, and will bring Western Alliance into brand new territory – Reno and Mesquite. BankWest, Western Alliance’s lead bank, had deposits of approximately $1.6 billion, loans of $1.1 billion and total capital of $148 million as of December 31, 2005. The additional number of offices will increase its loans by approximately $600 million and its deposits by $650 million.

"We’re a high-growth company in a fast-growing market," said Robert Sarver, chairman and CEO of Western Alliance. "We think this is a tremendous opportunity."

All three banks are designed to cater to local businesses, non-profits and individual customers, with a high level of service to the community. "Although our size will increase substantially, our small bank spirit won’t," said BankWest President and CEO Larry Woodrum.

BankWest’s expanded products and services, such as cash management, investment, trust, equipment lending and SBA lending options, will be extended to the new customers. "There won’t be any changes to [BankWest’s] customers," said Sarver, "but Bank of Nevada and Nevada First customers can start taking advantage of new product offerings within 90 days after the mergers close."

Arvind Menon, president and CEO of Nevada First Bank, is excited about what the merger will mean to his employees and customers. "Now our lending limits will go up and we can entertain larger transactions on the credit side," he said. Additionally, employees of Nevada First will enjoy more career opportunities and customers will find more banking offices.

Nevada First currently has four locations in Las Vegas and one in Reno. Work is underway on a second Reno office and another in Las Vegas, scheduled for completion in 2006. Roger Ashby, executive vice president and Northern Nevada regional president for Nevada First Bank, noted, "Robert Sarver has told me he expects us to expand faster in Northern Nevada than we’d originally planned, so the aspirations for more growth are definitely there."

"We see Western Alliance’s customer service and philosophy as being in line with Bank of Nevada’s," said John Gaynor, president and CEO of Bank of Nevada, which currently has one location in Las Vegas and one in Mesquite. "What you usually find with bank mergers is that part of the resulting premium that’s paid is through cutting employees and benefits. That’s not true here. Western Alliance has put in writing that no layoffs will take place. They see this as an opportunity to grow the franchise, so it’s a wonderful thing."

BankWest is currently the largest locally-based bank in Nevada. These mergers, along with new locations in all markets this year, virtually guarantee that the new Bank of Nevada will retain that status.