Following news of McKinney, Texas-based Independent Bank Group Inc.'s proposed purchase of Denver-based Guaranty Bancorp, Kroll Bond Rating Agency placed the ratings for the two companies on "watch developing."
The rating agency views the transaction as favorable to creditors of both companies, adding that the deal's above average purchase price of $1.0 billion is justified given the quality of Guaranty Bancorp's franchise, financial performance and condition.
According to Kroll, the Guaranty Bancorp acquisition is a "strong strategic fit" for Independent Bank Group, and that the buyer's considerable acquisition experience and the retention of the seller's personnel would reduce possible integration concerns.
Kroll noted, however, that Independent Bank Group may face challenges in Colorado which is regarded as a relatively new market. Specifically, the buyer, which has a much smaller existing Colorado franchise, may find it challenging to realize targeted expense saves in the near term, according to the rating agency.
