Fifth Third's $11 Billion Comerica Grab: What It Means for Investors | The Motley Fool

Fifth Third’s $11 Billion Comerica Acquisition: Impact on Investors

Last month, Fifth Third Bancorp, headquartered in Cincinnati, announced a major step in the regional banking sector — an all-stock acquisition of Comerica, based in Dallas, Texas, valued at approximately $10.9 billion.

This move strengthens Fifth Third’s position as one of the leading regional banks in the United States. Following the merger, the combined institution will become the nation’s ninth-largest bank, holding about $288 billion in total assets.

Strategic Expansion and Market Impact

The acquisition is expected to reshape the regional banking landscape. It grants Fifth Third a prime foothold in Michigan with the number one retail-deposit position, while also expanding its influence into rapidly developing markets like Texas.

The merger reflects a broader trend of increased bank consolidation under the Trump administration, which has eased restrictions and encouraged mergers and acquisitions across the industry.

Loan Portfolio and Business Strength

Post-acquisition, the bank’s combined loan portfolio will consist primarily of commercial real estate and commercial and industrial loans, accounting for over two-thirds of its total lending. Additionally, the institution will maintain strong fee-based businesses in areas such as commercial payments and asset and wealth management.

Earlier Challenges for Comerica

In the previous year, Comerica lost a significant contract with the U.S. Department of the Treasury to manage the agency’s Direct Express program, which handled federal benefit disbursements through prepaid cards.

The contract loss cost Comerica access to roughly $3 billion in non-interest-bearing deposits, a valuable source of low-cost funding used to support lending and investment activities.

Author Summary

The Fifth Third-Comerica merger marks a transformative moment in U.S. regional banking, boosting Fifth Third's scale, market presence, and lending capacity across critical growth regions.

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The Motley Fool The Motley Fool — 2025-11-07

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