Fifth Third Bancorp (NASDAQ:FITB) announced on Monday, October 6, that it will acquire Comerica Inc. (NYSE:CMA) in an all-stock transaction valued at $10.9 billion, a move that will create the ninth-largest bank in the United States. The combined institution will hold approximately $288 billion in assets and a strong presence across the Midwest, Texas, and California.
Following the announcement, Fifth Third shares rose 0.11%, while Comerica shares jumped 15.6% in afternoon trading.
The deal comes amid a wave of consolidation among regional banks, as lenders seek to diversify revenue sources and restore investor confidence following the 2023 regional banking crisis, which exposed vulnerabilities tied to commercial real estate and deposit flight. Analysts note that a more lenient regulatory stance under the Trump administration could further accelerate bank mergers.
Under the terms of the agreement, Comerica shareholders will receive 1.8663 Fifth Third shares for each Comerica share held, valuing the transaction at $82.88 per share based on Fifth Third’s October 3 closing price — a 20% premium over the prior 10-day average. The merger is expected to close in the first quarter of 2026, pending regulatory and shareholder approvals.
The combination will extend Fifth Third’s footprint to 17 of the 20 fastest-growing U.S. markets. CEO Tim Spence said the merger “marks a pivotal moment to increase density in high-growth markets and strengthen the bank’s commercial capabilities.”
According to Stephen Biggar of Argus Research, “record bank stock prices have created a stronger currency for acquisitions, which could spur new deals in the sector.”
Under the new structure, Comerica CEO Curt Farmer will serve as Vice Chairman of the merged company, while Chief Banking Officer Peter Sefzik will oversee the wealth and asset management divisions. The combined institution is expected to generate two high-return businesses, each valued at roughly $1 billion.
With $224 billion in deposits and $174 billion in loans, the new bank will emerge as a major regional powerhouse, with Fifth Third controlling about 73% of the combined entity.
Fifth Third Bancorp stock price
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