...Peer Review Completed: The viability ratings (VRs) and issuer default ratings (IDRs) for the community bank peer group were reviewed in September 2014. At that review, Fitch Ratings revised Independent Bank Corp.'s (INDB) Rating Outlook from Negative to Stable. All other ratings and outlooks were affirmed. Fitch believes that geographic and single-name concentrations as well as likely earnings challenges cap the group's maximum rating at `BBB+' over the near to intermediate horizon. M&A Picking Up: As expected, community banks have increased merger and acquisition (M&A) activity in 2014. Fitch believes weak net interest margins, rising compliance costs and stiff competition for loan growth are forcing acquiring banks to look at prospective acquisitions of branch networks and deposits more carefully. The number of whole, small bank M&A transactions where the target had less than $1bn in assets and the acquirer had over $2.5bn but under $10bn rose to 41 in 2013 from 23 in 2012. Through nearly...
