Western Alliance Bancorp in Las Vegas is teaming up with an investor group to start a bank in Oakland, Calif.
The Oakland group, led by the banker Arnold T. Grisham, filed an application late last year to open Alta California Bank late this year. However, on Wednesday the $3.3 billion-asset Western Alliance announced a deal with the group for the start-up to become a subsidiary, with Mr. Grisham serving as its president and chief executive.
Mr. Grisham and his group would ante up $7 million to $9 million of capital for Western Alliance, which in turn would capitalize the start-up with up to $25 million.
Robert Sarver, Western Alliance’s chairman and chief executive, said it had been eyeing the San Francisco Bay Area, particularly markets east of Oakland in Alameda and Contra Costa counties, where there are many new small businesses.
It was opportune to be able to team up with Mr. Grisham and his group, Mr. Sarver said. “They’ve been able to put together a great group of officers, directors, and organizers who will provide a good foundation for the bank.”
Alta California Bank would be Western Alliance’s third start-up. In 2003 it opened Alliance Bank in Phoenix and Torrey Pines Bank in San Diego. The two banks combined now have close to $1 billion of assets.
Since raising $85 million in an initial public offering in June, Western Alliance has also been acquisitive. Last month it bought the $463 million-asset Intermountain First Bancorp in Las Vegas, and this quarter plans it to complete a deal for the $254 million-asset Bank of Nevada, also of Las Vegas.
When that deal closes, Bank of Nevada and Intermountain’s Nevada First Bank, would be merged into Western Alliance’s flagship subsidiary, the $1.9 billion-asset BankWest of Nevada in Las Vegas. That bank would be renamed Bank of Nevada, though, to better reflect its expansion across the state.
BankWest and Western Alliance’s two other units have collectively opened four branches and plan to open eight more this year.
Brad Milsaps, an analyst at Sandler O’Neill & Partners LP, said that Western Alliance has become one of the fastest-growing banking companies in the country by focusing on high-growth markets. Though Oakland is not as fast-growing as Las Vegas, Phoenix, or San Diego, Mr. Grisham and his team can make up for that by stealing market share from other banks there, Mr. Milsaps said.
“That management team fits well with the company’s model — finding people with strong banking backgrounds and a lot of contacts, who are able to go out and hit the ground running,” he said.
Mr. Grisham was the president of the $542 million-asset Civic Bank of Commerce in Oakland before City National Corp. of Los Angeles bought it in 2002.
