trending Market Intelligence /marketintelligence/en/news-insights/trending/oQXbLJ3udtHUal4UN0iQdQ2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us
In This List

Kroll affirms SmartFinancial ratings following Entegra deal announcement

Banking Essentials Newsletter - November Edition

University Essentials | COVID-19 Economic Outlook in Banking: Rates and Long-Term Expectations: Q&A with the Experts

Estimating Credit Losses Under COVID-19 and the Post-Crisis Recovery

StreetTalk – Episode 70: Banks' Liquidity Conundrum Could Fuel M&A Activity

Kroll affirms SmartFinancial ratings following Entegra deal announcement

Kroll Bond Rating Agency on Jan. 16 affirmed Knoxville, Tenn.-based SmartFinancial Inc.'s ratings following announcement of its proposed merger of equals with Franklin, N.C.-based Entegra Financial Corp.

The company's senior unsecured debt rating and subordinated debt rating were affirmed at BBB and BBB-, respectively. The outlook for the company's long-term ratings is "stable."

Kroll views the proposed transaction as "neutral" to SmartFinancial's long-term ratings and in-line with its strategy of contiguous market expansion.

The rating agency noted that the transaction would add about $1.7 billion in assets to SmartFinancial's balance sheet, with pro forma assets totaling approximately $4 billion. Also, Entegra Financial's low-cost deposit base is expected to moderately drive down SmartFinancial's cost of deposits.

Kroll also expects capital ratios to reflect a stable to improving trend over the medium-term, based on the combined institution's capacity for internal capital generation.