US banks, mergers resume: Fifth Third takes over Comerica

Fifth Third announced the acquisition of Comerica for $10.9 billion, marking the latest attempt by mid-sized banks to strengthen and compete with the largest banks in the United States. The all-stock deal would create one of the 20 largest banks in the country, with $288 billion in total assets, according to Federal Reserve data. Comerica, headquartered in Dallas, has more than 350 branches in Texas, California, Michigan, Arizona, and Florida, markets that help satisfy Fifth Third's desire to expand into faster-growing regions of the country. Fifth Third, based in Cincinnati, operates 1,100 branches in the Midwest and South.

Regional banks are trying to diversify revenue streams, strengthen balance sheets and enter faster-growing markets in an attempt to overcome the crisis that hit the entire sector in 2023. A crisis that shook investor confidence and highlighted the risks of bank runs and difficulties in the commercial real estate sector.

Analysts said that consolidation is crucial for smaller banks to compete with the country's largest banks, with many institutions seeking to take advantage of a potentially more flexible regulatory environment under the Trump administration.

The integration will close by the end of the first quarter of 2026, after which three members of Comerica's board of directors will join the board of Fifth Third. The shareholders of Fifth Third will hold approximately 73 per cent of the merged company.