KBRA Assigns BBB Senior Unsecured Debt Rating for Allegiance Bancshares, Inc.

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 Allegiance Bancshares, Inc. (NASDAQ: ABTX) (“Allegiance”), a bank holding company headquartered in Houston, TX. In addition, KBRA has assigned deposit and senior unsecured debt ratings of BBB+, a subordinated debt rating of BBB, and short-term deposit and debt ratings of K2 for its subsidiary, Allegiance Bank (“the Bank”). The Outlook for all long-term ratings is Stable.

The ratings are supported by Allegiance’s relatively stable overall performance over a multi-year period and healthy net interest margin. Additionally, the experienced management team with its proficient risk management profile and strong capital management further supports the assigned ratings. The ratings are constrained by Allegiance’s heavily spread reliant revenues, elevated level of construction & development loans, and the inherent risks associated with the Bank’s geographic concentration within a single metro area. The Stable Outlook for the long-term ratings reflects the resilience of Allegiance’s capital and earnings to KBRA’s forward looking economic stress scenarios. Furthermore, the outlook assumes minimal impact on asset quality as a result of Hurricane Harvey, with earnings that return to pre-storm levels in ensuing quarters.

Please click here to view the report.

CONNECT WITH KBRA
Twitter
LinkedIn
Download the iOS App
YouTube

About KBRA and KBRA Europe

KBRA is a full credit rating agency 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). KBRA Europe is certified and registered with the European Securities and Markets Authority (ESMA).

Contacts:

Analytical:
Kroll Bond Rating Agency
Jason Szelc, 301-969-3174
Associate Director
jszelc@kbra.com
or
John Rempe, 301-969-3045
Analyst
jrempe@kbra.com
or
Joseph Scott, 646-731-2438
Managing Director
jscott@kbra.com

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.