NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns a senior unsecured long-term rating of BBB+, a subordinated debt rating of BBB, and a short-term debt rating of K2 to Northern Bancorp, Inc. (Northern or “the Company”), a bank holding company headquartered in Woburn, Massachusetts. In addition, KBRA has assigned a senior unsecured debt/deposit rating of A-and a short-term debt rating of K2 to the subsidiary bank, Northern Bank & Trust Company (“the Bank”). The outlook on all ratings is stable. The above ratings are based on KBRA’s Global Bank and Bank Holding Company Rating Methodology published on January 28, 2015.
The ratings are supported by Northern’s trend of positive earnings, better-than-average profitability, a strong efficiency ratio, and excellent asset quality, as well as management’s overall experience and core market knowledge. The ratings are constrained by Northern’s geographic concentration and high exposure to risks of the real-estate market, although the Boston economy has been historically less volatile than many other parts of the United States. Although Northern is comfortably above “well capitalized” for regulatory purposes, when compared to peers, the regulatory capital ratios are moderately below-average.
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