NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) has assigned a senior unsecured debt
rating of BBB, subordinated debt rating of BBB-, and short-term debt
rating of K3 to Durant, Oklahoma based Durant Bancorp, Inc. (“Durant” or
“the Company”). Moreover, KBRA has assigned deposit and senior unsecured
debt ratings of BBB+, a subordinated debt rating of BBB, and short-term
debt and deposit ratings of K2 to the subsidiary bank, First United Bank
and Trust Company. The outlook on all long-term ratings is stable.
Durant’s ratings are supported by consistent earnings performance,
strong liquidity position and noninterest revenue base, and an efficient
enterprise risk management framework. The ratings also reflect Durant’s
experienced management team and dynamic markets of operation, which
combine metropolitan and rural expansion opportunities. Ratings are
primarily constrained by a high concentration in construction and
development loans, as well as in real estate loans, and moderately above
average Texas ratio, though notable improvements have been made in this
regard since 2010. Secondary constraints to the ratings include the
Company’s exposure to geographic concentration risks, and above average
efficiency ratio. Moreover, merger integration risks are present with
the relatively large-scale acquisition of North American Bancshares,
Inc. (NAB), though deal rationale is sensible and the NAB is located in
a contiguous market.
The ratings are based on KBRA’s Global
Bank and Bank Holding Company Rating Methodology published on
February 19, 2016.
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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).
Kroll Bond Rating Agency
Senior Managing Director