U.S. Midtier Regional Bank Periodic Review

...Peer Review Completed: As part of its annual midtier regional bank peer review on Dec. 14, Fitch Ratings affirmed seven ratings with a Stable Rating Outlook, upgraded two ratings with a Stable Rating Outlook (FNNI, WTFC) and revised two Outlooks -- one to Negative (BKU) and one to Positive (SNV). Limited Company Profiles: Midtier regional banks typically lag their large regional bank counterparts in terms of geographic footprint and product/revenue diversification. As such, midtier regional banks have greater loan concentrations. Thus, Fitch believes the median rating level for this peer group is structurally lower than its larger counterparts. Stable Sector Outlook: The stable outlook for the midtier regional bank universe is supported by good liquidity and capital profiles and still-benign asset quality. Outsized Growth: Pockets of loan growth have been very strong relative to the industry and other peer groups. In Fitch's view, this is potentially indicative of loosening credit standards...

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