In a move set to reshape regional banking, Fifth Third Bancorp announced its agreement to acquire Comerica Inc. on October 6. The transaction, which totaled $10.9 billion, marks a significant step in Fifth Third’s strategy to expand its commercial banking presence and location reach.

 

When the two institutions combine, they will create a financial powerhouse that boasts approximately $288 billion in assets. The acquisition will also lead the firm to rank as one of the nation’s largest financial companies, positioning it as the country’s ninth-largest bank.

 

New Commercial Capabilities

A key driver of this merger is a commitment to scaling the commercial space, an area where Comerica brings considerable expertise. The move is expected to create two powerful, fee-generating units—Wealth and Asset Management and Commercial Payments—each projected to be $1 billion businesses. This focus on fee-based revenue streams provides stability and diverse income sources for the combined organization.

 

Comerica’s existing lending capabilities in CRE, which include specialized offerings like construction loans, commercial mortgages, bridge financing, and acquisition funding, will significantly enhance the new firm’s service portfolio. For clients, this means access to deeper capital markets solutions and financial products across a wider platform. Joining Fifth Third’s strengths in retail, payments, and digital capabilities will allow the commercial franchise to build and expand its offering for customers.

 

Expanding Across the Country

The combined bank will operate in 17 of the 20 fastest-growing regions nationally. Comerica currently maintains strong presences in states like Texas, California, Florida, Arizona, and Michigan, and has already signaled its intentions to grow into other states like Colorado and North Carolina.

 

The strategy is focused on the Sunbelt and West Coast moving forward. The new bank anticipates that by 2030, over half of Comerica’s legacy branch network will be located across high-density, high-growth markets, including Texas, Arizona, California, and the Southeast. This positioning aligns the combined firm for long-term demographic and economic tailwinds.

 

Forward Outlook

The structure of the new organization reflects Fifth Third’s dominance, with its shareholders poised to hold approximately 73 percent of the combined firm, while Comerica shareholders will hold roughly 27 percent. The company hasn’t announced the combined firm’s name yet, but its leadership is developing it. Comerica’s Chairman and CEO, Curt Farmer, will transition into the role of Vice Chair, providing crucial leadership continuity. Additionally, Comerica’s Chief Banking Officer, Peter Sefzik, will take charge of Fifth Third’s Wealth & Asset Management unit, signaling the intent to integrate top talent from both sides.

 

Subject to customary closing conditions and regulatory approvals, the two banking giants anticipate the deal will successfully close in the first quarter of 2026. This merger represents a bold, calculated bet on scale, commercial specialization, and expansion into the country’s top markets, positioning the combined bank for a new era of growth.