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

Fifth Third's $11 Billion Acquisition of Comerica

Last month, Fifth Third Bancorp, headquartered in Cincinnati, announced a $10.9 billion all-stock acquisition of Dallas-based Comerica. This significant deal reshapes the regional banking sector and marks an acceleration in bank mergers and acquisitions under the Trump administration.

Details of the Acquisition

The merger will create the ninth-largest bank in the United States, boasting $288 billion in assets. It grants Fifth Third the leading retail-deposit franchise in Michigan and strengthens its presence in rapidly growing markets like Texas.

Financial and Business Impact

After the deal closes, the combined bank will have over two-thirds of its loan portfolio in commercial real estate and commercial and industrial loans. It will also maintain robust fee-based operations in commercial payments, asset management, and wealth management.

Context on Comerica’s Treasury Contract Loss

Comerica previously managed the U.S. Treasury's Direct Express program, distributing federal benefits via prepaid cards. This contract supplied around $3 billion in non-interest-bearing deposits, a vital funding source for lending and securities purchasing. However, the Treasury awarded this contract to Fifth Third after Comerica lost it.

"The contract provided the bank with roughly $3 billion in non-interest-bearing deposits, essentially free funding that the bank could use to originate loans or buy securities."

As a result, Fifth Third gains both Comerica’s assets and its recently acquired Treasury contract, enhancing its funding capabilities.

Author's Summary

This merger positions Fifth Third as a leading regional bank with expanded market reach and diversified commercial lending and fee businesses, capitalizing on recent Treasury contract gains.

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

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