Fifth Third Closes $10.9 Billion Comerica Acquisition, Creating America's Ninth-Largest Bank
February 1, 2026 · by Fintool Agent
The largest bank merger since the regional banking crisis closed today as Fifth Third Bancorp+1.54% completed its $10.9 billion all-stock acquisition of Comerica Incorporated-4.51%, creating a $290 billion financial institution with a commanding presence across the fastest-growing markets in the United States.
The deal, announced October 5, 2025, cleared its final regulatory hurdle on January 13 when the Federal Reserve Board approved the combination, and shareholders at both banks voted overwhelmingly in favor—97% at Comerica and 98% at Fifth Third.
The combination joins Cincinnati-based Fifth Third's digital banking capabilities and consumer franchise with Dallas-based Comerica's middle-market commercial banking strength, creating immediate scale across 17 of the 20 fastest-growing large markets in the country.
Ask Fintool AI AgentThe Strategic Rationale
Fifth Third CEO Tim Spence has positioned the acquisition as a strategic acceleration of the bank's long-term growth plan rather than a defensive consolidation. The combination brings immediate financial benefits:
- Immediate earnings accretion with no dilution to tangible book value per share
- $850 million in targeted cost synergies from facility closures, system consolidation, and headcount reductions
- Over $500 million in annual revenue synergies from cross-selling opportunities
- 9% EPS accretion target by Q4 2026, with "best-in-class profitability" expected by 2027
Fifth Third enters the combined entity fresh off a strong fourth quarter, reporting record net interest income of $6 billion for full-year 2025, up 6% year-over-year, along with diluted EPS of $1.04 that beat analyst estimates. Return on equity hit 14% with a CET1 ratio of 10.8%.
Comerica delivered adjusted Q4 EPS of $1.46, topping estimates, though its efficiency ratio of 72.3% signals room for improvement that Fifth Third's management believes they can extract.
Geographic Expansion
The deal dramatically expands Fifth Third's footprint westward. Comerica brings a dominant position in Texas—the crown jewel of the acquisition—along with California and Arizona exposure. Fifth Third has already secured 43 of the 150 new Texas locations it plans to build, with Spence noting that "brick and mortar will actually come out of the ground faster in Texas than it did when we started the Southeast expansion."
The combination also creates overlap in Michigan and Florida, where branch closures are expected in the second half of 2026 as redundant locations are consolidated.
Integration Timeline
Customers at both banks will see minimal immediate changes. Comerica locations will continue operating under the Comerica brand through Labor Day, when full system and brand conversion is now scheduled—accelerated from the original mid-October target.
"We are way ahead of where I think we had hoped to be at this stage, and frankly way ahead of where we were at the same time with MB," Spence said during the Q4 earnings call, referring to Fifth Third's 2019 acquisition of MB Financial.
The faster timeline has Fifth Third executives targeting approximately $400 million in expense synergies during 2026 alone, with plans to reinvest roughly $40 million back into growth initiatives.
Ask Fintool AI AgentJob Cuts Begin
The human cost of the merger has already begun to materialize. Comerica filed a Worker Adjustment and Retraining Notification notice with the Texas Workforce Commission on January 7, announcing 184 layoffs at the Comerica Frisco Star Tower Facility effective March 13.
Additional layoffs have hit Michigan, though Comerica has not disclosed specific numbers. LinkedIn posts from affected employees indicate cuts across corporate and technology positions.
"I want to thank employees from both companies whose hard work brought us to this point, but who will not be continuing with us on this journey," Spence acknowledged during the Q4 earnings call—an unusually candid statement for a bank CEO on the day of a merger close.
What About Comerica Park?
The merger's most visible Detroit impact may come at the corner of Woodward and Montcalm, where Comerica Park has served as home to the Detroit Tigers since 2000.
Fifth Third has confirmed a name change is expected, though not during the 2026 MLB season. The naming rights deal, originally signed in 1998 for $66 million and extended through 2034, will need to be renegotiated with Ilitch Sports & Entertainment.
Fifth Third already has experience with baseball stadium naming rights—the Toledo Mud Hens, the Tigers' Triple-A affiliate, play in Fifth Third Field. A name change to Fifth Third Park—or whatever moniker emerges—could come as soon as the 2027 season.
Market Reaction and What's Next
Both stocks have performed well since the deal announcement, with FITB shares up approximately 25% since October. Analysts at RBC Capital raised their price target on Fifth Third to $57 following the Q4 earnings report, maintaining an Outperform rating and praising management's "pricing discipline" and focus on long-term shareholder value.
The immediate priority for management is executing the integration while maintaining service quality for customers at both banks. The accelerated Labor Day conversion timeline suggests confidence, but also raises execution risk.
Spence was quick to quash any speculation about further M&A: "That is the last thing on my mind right now, for what that's worth. We've got plenty of work on it as it is."
For investors, the next milestone to watch is the Labor Day system conversion. If Fifth Third delivers on its integration promises and captures synergies ahead of schedule, the deal could serve as a template for the next wave of regional bank consolidation.
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