Kroll Bond Rating Agency on Nov. 27 assigned First Paragould Bankshares Inc. a senior unsecured debt rating of BBB, a subordinated debt rating of BBB- and a short-term debt rating of K3.
Subsidiary First National Bank received deposit and senior unsecured debt ratings of BBB+, a subordinated debt rating of BBB and short-term deposit and debt ratings of K2.
The ratings reflect the Paragould, Ark.-based bank's "notable performance" during the financial crisis and its "strong earnings metrics since the financial downturn," according to Kroll. They also take into account its exposure to "potentially volatile" agricultural lending, "elevated" loan-deposit ratio and possible governance issues due to its ownership structure. The rating agency noted governance standards seem "adequate" and that the Brewer family intends to maintain private ownership.
The outlook on all long-term ratings is stable.
