Western Alliance Bancorp. in Phoenix has agreed to buy Bridge Capital Holdings in San Jose, Calif.
The $10.6 billion-asset Western Alliance will pay $425 million in cash and stock for the $1.8 billion-asset Bridge. The deal is expected to close in the fourth quarter.
Western Alliance said in a press release late Monday that it will continue to use the Bridge Bank brand as a division tied to its operations in northern California.
Bridge is "a fast growing, well-managed organization that substantially strengthens our northern California presence, while providing new avenues for growth in technology and international services," Robert Sarver, Western Alliance's chairman and chief executive, said in the release. "Bridge Bank's exceptional funding profile and low cost of deposits provide the rare opportunity to improve our liquidity and margins simultaneously."
Sandler O'Neill advised Bridge.