Fifth Third Bancorp stated Monday it’ll purchase fellow regional financial institution Comerica for $10.9 billion in an all-stock deal that can create one of many largest U.S. banks by belongings.
When the deal closes, it’ll create the ninth-largest U.S. financial institution — with roughly $288 billion in belongings. The transaction is anticipated to finalize in the primary quarter of 2026.
“The things that have defined Fifth Third over the course of the past 10 years have been this focus on stability, profitability and our ability to drive organic growth,” Fifth Third CEO Tim Spence advised CNBC’s
“Squawk Box” in an interview Monday. “What’s defined Comerica is an incredible middle-market commercial banking platform, and the access that Comerica has to high growth markets like Texas and large economies like California.”
Spence stated the financial institution intends to construct 150 branches in Texas and “move into a top five position in Dallas, Houston and Austin.”
“In an environment where merger approvals are coming faster, it builds our confidence,” he stated. “Regulators believed we had the capacity to run a much larger bank.”
Comerica shares rallied about 15% in early buying and selling following the announcement. Fifth Third traded barely decrease.
CMA and FITB 5-day chart
“Joining with Fifth Third – with its strengths in retail, payments and digital – allows us to build on our leading commercial franchise and further serve our customers with enhanced capabilities across more markets,” Comerica Chief Executive Curt Farmer wrote in a press release.
The SPDR S&P Regional Banking ETF (KRE) jumped 1% in premarket buying and selling on expectations this deal would be the begin of many extra in the reginal banking area because the Trump administration and Republicans ease laws and takeover scrutiny.
— CNBC’s Luke Fountain contributed to this report.