Kroll Bond Rating Agency Releases “Bank Acquisitions and their Rating Implications” Research Report

NEW YORK--()--Kroll Bond Rating Agency (KBRA) releases “Bank Acquisitions and their Rating Implications” research report. The report assesses recent acquisitions in KBRA’s rated universe of community and regional banks and details key factors when KBRA assesses bank acquisitions. The report makes the following key points:

  • KBRA-rated community and mid-tier regional banks have announced 18 bank acquisitions since the beginning of 2014. Recently, the pace of bank acquisitions has accelerated.
  • To date, the rating implications of acquisitions have been generally stable to positive. Bank acquisitions have helped diversify lending/depository franchises and increase market share. Acquisition-related risks have been well contained to date. Generally, acquisitions have been relatively small-scale transactions in markets management knows well.
  • The emergence of more sizeable acquisitions, particularly large out-of-market transactions would generally cause rating concerns. If competitive pressures intensify, negative rating drivers could ensue including aggressive acquisition pricing, significantly diluted pro forma capital ratios, and rushed due diligence.

To view the report, please use the following link: www.krollbondratings.com/show_report/2209

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

Kroll Bond Rating Agency
Analytical Contacts:
Joseph Scott, 646-731-2438
Senior Director
jscott@kbra.com
or
Christopher Whalen, 646-731-2366
Senior Managing Director
cwhalen@kbra.com
or
Marjan Riggi, 646-731-2354
Managing Director
mriggi@kbra.com

Follow us on Twitter!
@KrollBondRating

Contacts

Kroll Bond Rating Agency
Analytical Contacts:
Joseph Scott, 646-731-2438
Senior Director
jscott@kbra.com
or
Christopher Whalen, 646-731-2366
Senior Managing Director
cwhalen@kbra.com
or
Marjan Riggi, 646-731-2354
Managing Director
mriggi@kbra.com

Follow us on Twitter!
@KrollBondRating