Fifth Third Bancorp Acquires Comerica for $10.9 Billion
Fifth Third Bancorp has announced its acquisition of Comerica in a stock deal valued at $10.9 billion, combining two prominent regional banks.
This merger will give rise to the ninth largest bank in the US, with total assets reaching approximately $288 billion, according to a company statement released on Monday.
The combined entity will enhance Fifth Third’s presence in Texas and Southeast California, while also solidifying its foothold in the Midwest. By 2030, it’s anticipated that over half of Fifth Third’s branches will be situated in Texas, Arizona, and Southeastern California.
Tim Spence, chairman and CEO of Fifth Third, characterized this acquisition as a significant step, enhancing the bank’s growth strategy in high-potential markets. He highlighted that Comerica’s strong middle-market presence and geographic alignment make the partnership a logical move.
In terms of financials, Comerica shareholders will receive 1.8663 shares of Fifth Third for each share they hold, translating to approximately $82.88 per share based on Fifth Third’s closing price last Friday.
Post-merger, shareholders of Fifth Third will control around 73% of the new enterprise, while Comerica shareholders will own about 27%.
The regional banking sector has seen a wave of consolidations lately.
For context, just a month ago, PNC Financial acquired Colorado’s FirstBank for $4.1 billion, indicating its aim to establish a strong market presence in both Colorado and Arizona.
This acquisition will position PNC as the largest bank in the Denver area, boasting over 70 branches in Arizona, and expanding its assets to around $575 billion.
PNC is generally categorized as a super regional bank—large in scale, with hundreds of billions in assets and numerous branches—though it faces competition from larger banking entities like Wells Fargo, Bank of America, and JP Morgan Chase.
On a governance note, after the merger, three Comerica board members will join the Fifth Third board based in Cincinnati. Kurt Farmer, Comerica’s Chairman and CEO, will become Vice-chairman, while Charles Sefuzic, Comerica’s Chief Banking Officer, will lead Fifth Third’s wealth and asset management efforts.
The deal is projected to finalize by the end of the first quarter of 2026, pending approval from shareholders from both banks.
Following the news, Comerica shares increased by more than 2% on Monday, while Fifth Third’s stock remained steady.
