Kroll Bond Rating Agency Assigns Senior Long-Term and Short-Term Unsecured Debt Ratings for First National of Nebraska, Inc.

Kroll Bond Rating Agency (KBRA) has assigned the senior unsecured debt rating of A-, subordinated debt rating of BBB+, and the short-term debt rating of K2 for First National of Nebraska, Inc. (OTCPK:FINN, “FNNI” or “the Company”), a bank holding company headquartered in Omaha, Nebraska. KBRA has also assigned deposit and senior unsecured debt ratings of A, a subordinated debt rating of A-, and short-term deposit and debt ratings of K1 for the lead subsidiary, First National Bank of Omaha (“the Bank” or “FNBO”). The outlook on all long-term ratings is stable.

The ratings are supported by FNNI’s conservative management team, historically above average earnings metrics, stable fee income streams, and comfortable capital position. Additionally, factors such as the Bank’s sizeable deposit market share in key markets, strong track record, and generally prudent expansion strategy underpin the ratings.

The ratings are constrained by FNNI’s lower diversification by geography and product compared with large U.S. banks, although this constraint is partially mitigated by management’s in-depth knowledge of key products and markets of operation. FNNI could be affected over time by a prolonged downturn in the agricultural sector, although the agricultural portfolio is well managed.

The ratings are based on KBRA’s Global Bank and Bank Holding Company Rating Methodology published on February 19, 2016.

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).

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