Bank entity raises $30.2 million

Western Alliance Bancorporation, the holding company for Bank of Nevada, on Friday reported that it completed a private placement of common stock, raising $30.2 million.

Meanwhile, Silver State Bancorp, the Henderson-based holding company for the similarly named bank, seeks to raise $40 million in capital. Community Bancorp, a third publicly held banking company based in Southern Nevada, has taken steps that would enable it to raise capital.

The price of the new Western Alliance shares was $7.94 based on the closing price Tuesday.

"This new equity will help us support strong loan growth as well as enhance our capital position," Robert Sarver, chairman and CEO of Western Alliance, said in a statement.

Timothy Coffey, vice president of research for FIG Partners, doesn't follow Western Alliance but said some banks are taking advantage of the real estate crunch to pick up new clients.

"Banks that have capital now are able to steal business from banks that have problems with their loan portfolios," Coffey said.

It is difficult to raise money on Wall Street for banks because of the credit crisis, he said.

Western Alliance said 40 directors and officers purchased 45 percent of the private placement.

Silver State has filed documents with the Securities and Exchange Commission so that it can raise up to $40 million of capital through sale of rights on stock to existing shareholders.

Rights entitle existing shareholders to buy shares at a discount.

Keefe, Bruyette & Woods and Howe Barnes Hoefer & Arnett are managers for the rights offering. In late May, Community Bancorp won shareholder approval to increase the shares of stock and create a class of preferred stock.

Contact reporter John G. Edwards at jedwards@reviewjournal.com or 702-383-0420.