Western Alliance Bancorporation (WAL)

[Enterprising Investor]

WAL buys WLBC in Las Vegas for $55 million (8/17/12)

Chris Sieroty
LAS VEGAS REVIEW-JOURNAL

Western Alliance Bancorporation, the parent company of Bank of Nevada, on Friday agreed to acquire Western Liberty Bancorp Inc. for $55 million.

"This transaction further strengthens our capital position, increases our core deposits, and enables us to further leverage our existing infrastructure in Las Vegas," said Robert Sarver, chairman and CEO of Phoenix-based Western Alliance. "We expect the transaction to be immediately accretive to our tangible book assets."

Service1st Bank of Nevada, one of two Western Liberty subsidiaries, will merge with Bank of Nevada when the deal closes. The other subsidiary, Las Vegas Sunset Properties, is also being acquired in the deal but its future was not discussed in the merger announcement.

Sarver expects completion of the deal by year's end.

The merger was announced three days after Western Liberty posted a loss of $1.5 million, or 11 cents per share, in the second quarter, compared with a loss of $4.6 million, or 30 cents a share, for the same period last year.

"With significant customer overlap between Bank of Nevada and Service1st Bank, we anticipate quickly integrating the two institutions," said Bruce Hendricks, CEO of Bank of Nevada. The deal has been approved by directors of each company, but it must pass muster with Western Liberty stockholders and with banking regulators.

William Martin, CEO of Las Vegas-based Western Liberty, said being acquired by Western Alliance would "add greater lending capacity" and new opportunities for growth.

"As we considered all of our strategic growth options, it became clear that choosing to partner with Western Alliance can provide the greatest benefits and opportunities for our stockholders, employees, customers and the communities we serve," Martin said.

He said it was "way too early" to discuss his role with the new company.

Western Liberty, with $199 million in assets, also announced early Friday it received state regulatory approval to close one of two bank branches in Las Vegas. The Service1st branch at 8965 S. Eastern Ave. will close Sept. 14. It enters the merger with one branch at 8349 W. Sunset Road .

In Nevada, the commissioner of the state's Division of Financial Institutions must approve branch closures.

Martin said the Eastern Avenue branch opened in 2007, but "it has never grown enough to support itself."

It had about $36 million in deposits, compared with $96 million at the bank's main office.

Costs incurred by the branch closing and staff reductions were not disclosed.

Service 1st Bank opened in January 2007. Western Liberty Bancorp was formed in October 2010 with its acquisition of Service1st Bank.

Western Liberty also owns Las Vegas Sunset Properties, established in October to hold problem loans and foreclosed real estate from Service1st Bank. The purchase price was about $15.5 million, including $4 million for the Other Real Estate Owned, OREO, properties and $11.5 million for the loan assets.

Contact reporter Chris Sieroty at [e-mail] or 702-477-3893.

http://www.lvrj.com/business/service1st-bank-of-nevada-to-close-one-of-two-las-vegas-branches-166600046.html