KBRA Comments on National Commerce Corporation’s Acquisition of FirstAtlantic Financial Holdings, Inc.

NEW YORK--()--Kroll Bond Rating Agency (KBRA) has released a comment on National Commerce Corporation’s acquisition of FirstAtlantic Financial Holdings, Inc. The comment makes the following key points:

  • Birmingham, Alabama based National Commerce Corporation (NASDAQ:NCOM) (“the Company”), and FirstAtlantic Financial Holdings, Inc. (OTCQX: FFHD), recently announced a definitive agreement and plan of merger. After the merger, FirstAtlantic Bank will become a part of National Bank of Commerce, though it will continue to operate under the FirstAtlantic Bank trade name and its existing management team.
  • In KBRA’s opinion, the transaction is neutral to the ratings of National Commerce Corporation in the short term, though it expands the Company’s geographic presence into the economically vibrant Jacksonville metropolitan statistical area. The transaction is consistent with NCOM’s acquisition strategies and in line with the Company’s business strategy in Florida.
  • KBRA does not foresee material integration challenges emerging from the transaction given the size of the acquired institution. Furthermore, the retention of key executives, coupled with NCOM’s proven track record of successful merger integrations, are expected to lead to a smooth completion of the deal.
  • KBRA does not anticipate any material impact to NCOM’s capital position, which should remain strong post-merger. In addition, the concentration risk related to the loan portfolio of the combined entity is expected to remain consistent with NCOM’s pre-merger profile, as the two institutions appear to share relatively similar loan portfolio composition.
  • The transaction, valued at approximately 177% of FFHD’s tangible book value, is expected to close in the first quarter of 2018.

To view the full comment, please click here.

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).

Contacts

Analytical:
Kroll Bond Rating Agency
Amina Ouattara, 301-969-3187
Associate
aouattara@kbra.com
or
John Rempe, 301-969-3045
Analyst
jrempe@kbra.com

Contacts

Analytical:
Kroll Bond Rating Agency
Amina Ouattara, 301-969-3187
Associate
aouattara@kbra.com
or
John Rempe, 301-969-3045
Analyst
jrempe@kbra.com