Fifth Third and Comerica enter $10.9 billion deal to create ninth-largest bank in the U.S.

"Fifth Third on Monday agreed to buy regional lender Comerica in an all-stock deal valued at $10.9 billion, creating the ninth-largest U.S. lender with a robust presence in the Midwest. Regional lenders are looking to diversify revenue streams, strengthen balance sheets and expand into faster-growing markets as they recover from an industry-wide crisis in 2023 that shook investor confidence and exposed the risks of bank runs and troubles in commercial real estate."

"Analysts have said consolidation is crucial for smaller lenders to compete with the nation's largest banks, with several banks looking to take advantage of a potentially lighter regulatory environment under the Trump administration. Comerica shareholders will receive 1.8663 Fifth Third shares for each Comerica share, valuing the deal at $82.88 per share based on Fifth Third's closing price on October 3. Shares in Comerica were last up 12% before the bell, while Fifth Third fell 3%."

Fifth Third agreed to acquire Comerica in an all-stock transaction valued at $10.9 billion, creating the ninth-largest U.S. bank with strengthened Midwest presence. The deal offers Comerica shareholders 1.8663 Fifth Third shares per share, valuing Comerica at $82.88 based on Fifth Third's October 3 close. Regional banks are pursuing consolidation to diversify revenue, reinforce balance sheets and expand into faster-growing markets after the 2023 industry crisis that revealed liquidity and commercial real estate risks. The merger broadens Fifth Third's footprint into 17 of the 20 fastest-growing U.S. markets and aims to deepen commercial capabilities and market density.

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