Fifth Third to Acquire Comerica for $10.9 Billion

A $10.9 billion all-stock deal between Fifth Third and Comerica is set to reshape the U.S. banking landscape, creating one of the ten largest banks in the nation with assets nearing $288 billion. The acquisition underscores a renewed wave of consolidation in the American banking sector amid shifting interest rates, digital competition, and changing consumer preferences.

A Landmark Banking Merger

Fifth Third Bancorp announced plans to acquire Comerica Incorporated in a $10.9 billion stock transaction, marking the largest U.S. bank merger announced in 2025. The deal, expected to close by March 31, 2026, will result in the ninth-largest U.S.-based bank by total assets. Comerica shareholders will receive 1.8663 Fifth Third shares for each Comerica share, representing a 20% premium over Comerica’s recent average stock price.

When finalized, Fifth Third shareholders will own 73% of the new entity, while Comerica investors will hold 27%. Analysts described the transaction as a “game-changer” that accelerates Fifth Third’s expansion strategy into new high-growth markets.

Expanding in the Southeast and Texas

The merger represents a major geographic leap for Fifth Third, traditionally centered in the Midwest. Comerica’s presence in Texas and California complements Fifth Third’s growing network in the Southeast and Sun Belt, regions known for robust population and business growth.

The combined entity aims to secure a top-five market share in states like Texas, Florida, and California—while expanding its middle-market lending capacity by 20%. Fifth Third plans to open 150 new branches in Texas by 2029, making it one of the largest retail banks in Dallas, Houston, and Austin.

CEO Tim Spence called the deal “a pivotal moment” for the bank’s growth. He noted that Comerica’s middle-market expertise and customer relationships will strengthen Fifth Third’s commercial and digital banking services across the region.

Strengthening the Midwest Base

In addition to the southern expansion, the merger also enhances Fifth Third’s footprint in the Midwest, particularly Michigan, where it will become the No. 1 retail deposit holder. The bank estimates a $2 billion deposit growth opportunity once Comerica’s branches are integrated with Fifth Third’s advanced digital banking tools.

Comerica’s existing customer base, known for its strong business and commercial loan activity, will gain access to Fifth Third’s broader suite of checking accounts, mortgages, and consumer credit products, enabling a more diversified and competitive portfolio.

The Bigger Picture: Renewed Bank Consolidation

The Fifth Third–Comerica deal follows a series of major bank mergers in 2025, including PNC’s $4.1 billion acquisition of FirstBank and Pinnacle’s $8.6 billion merger with Synovus. Analysts suggest that a friendlier regulatory environment may encourage additional large-scale deals as banks seek efficiency, digital innovation, and market reach.

Closing Insight

The merger signals a new era of strategic consolidation in U.S. banking, as institutions adapt to evolving customer needs, digital transformation, and competition from fintech firms. For customers, the integration promises broader access to credit and digital services; for investors, it reflects confidence in a sector positioning itself for growth as interest rates and loan demand stabilize.

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