Focusing on the mid-sized businesses in California intensifies for the Western Alliance
Western Alliance Bank Strengthens National Presence
Western Alliance Bank, a regional lender that has been under the spotlight following the failures of Signature Bank, Silicon Valley Bank, and First Republic Bank, is expanding its reach in California and other states.
Julian Parra, the national head of commercial and industrial banking, joined the bank about a year ago and is spearheading this growth. While Parra didn't comment on the scope of Western Alliance's future expansion, he didn't rule out the possibility of further growth.
Western Alliance's focus is on middle-market companies, those generating between $20 million and $250 million in revenue, seeking traditional cash management products and loans, as well as foreign exchange, trade finance, and interest rate hedging capabilities. The bank sees opportunities in industries such as aerospace, defense, food and agriculture, entertainment, and gaming.
In a move to strengthen its position, Western Alliance is consolidating six of its division banks under one brand name—Western Alliance Bank—by the end of 2025. This consolidation includes Alliance Association Bank, Alliance Bank of Arizona, Bank of Nevada, Bridge Bank, First Independent Bank, and Torrey Pines Bank, aiming to provide seamless, specialized commercial banking services with personalized relationships maintained.
Western Alliance is pursuing $5 billion in loan growth and $8 billion in new deposits in 2025, illustrating competitive ambitions against larger and regional banks. The bank is also hiring new bankers, with a focus on aerospace and defense or food and agriculture, to support its growth.
However, the bank faces competition in the California market from banks such as Banc of California, Five Star Bank, JPMorgan Chase, U.S. Bank, and regionals such as Citizens. Parra emphasized the importance of bankers being relationship-oriented, providing advice, and having local connectivity and industry knowledge.
In response to industry turmoil, Western Alliance sought to highlight its deposit strength and beat back rumors of a sale. Parra didn't mention any plans for purchasing licensing rights. As of June 30, the bank's deposits totaled $66.2 billion, about a 30% jump from the year-earlier period.
Parra sees "thousands" of client opportunities in Western Alliance's existing footprint and prospects for growth in the industries the bank is focused on. The bank is considering commercial expansion into other states such as Texas and Florida for food and agriculture, Washington, D.C., for aerospace and defense, and the southeastern U.S. for entertainment.
Parra didn't provide a specific target for banker hires for 2025 or 2026. However, since he joined, Western Alliance has hired 12 new bankers in California, demonstrating the bank's commitment to growth.
In summary, Western Alliance Bank’s expansion in California and other states is characterized by brand unification, broad commercial banking services tailored to middle-market companies likely including industries like aerospace, defense, food, entertainment, and gaming, and growing loan and deposit bases to compete effectively with major regional and national banks.
The expansion of Western Alliance Bank involves not only reaching various states but also focusing on industries such as aerospace, defense, food, entertainment, and gaming, thereby enabling the bank to provide specialized services to middle-market companies in the finance sector. As a strategic move, Western Alliance is pursuing significant loan growth and new deposits to solidify its position in the competitive business environment.
