NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) has assigned senior unsecured debt and deposit ratings of A-, a subordinated debt rating of BBB+, and short-term debt and deposit ratings of K2 for TowneBank (NASDAQ: TOWN), headquartered in Portsmouth, Virginia. The Outlook on all long-term ratings is Stable.
The ratings are supported by TowneBank’s consistent earnings history and highly diversified revenue streams. Additionally, Towne’s solid asset quality, experienced executive team, and strong deposit franchise—including the no. 1 deposit market share in the Virginia Beach-Norfolk-Newport News, VA-NC metropolitan statistical area—further support the Bank’s ratings. The ratings are constrained by TowneBank’s relatively small but expanding geographic footprint and high percentage of construction and development loans, as well as the substantial overall growth of the Bank since year-end 2014.
The Stable Outlook for the long-term ratings reflects TowneBank’s resiliency in earnings and capital to KBRA’s forward-looking economic stress scenarios. Additionally, the Outlook reflects KBRA’s view towards the pending acquisition of Paragon Commercial Corporation and the expected impact it will have on the overall performance of the Bank.
The ratings are based on KBRA’s Global Bank and Bank Holding Company Rating Methodology published on February 19, 2016.
Please use the following link to access the report.
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About Kroll Bond Rating Agency
KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).