... Bancshares, Inc.'s (HBAN) ratings and Stable Rating Outlook reflect Fitch Ratings' view that the FirstMerit (FMER) transaction represents low credit risk, manageable integration and reasonable cost-save estimates given the significant amount of overlap between the two entities. Further, execution risks are viewed as modest given that FMER is a solid institution with good earnings and asset quality performance. Sustainable Performance: Despite a challenging operating environment, HBAN earnings have been solid, with an average return on assets (ROA) of 0.99% for the past five sequential quarters, which is slightly above the peer average. Further, on average, net interest margin (NIM) compression has been more manageable versus peers. HBAN's earnings trajectory is supported by good loan growth and its acquisition of Macquarie Equipment Finance, which adds higher-yielding loans with stable credit performance. Credit Costs Support Earnings:...
