Fifth Third Bancorp to Acquire Comerica in Major Merger

Dallas, Texas – Fifth Third Bancorp announced Wednesday that it will acquire Comerica in a deal valued at $10.9 billion. The merger, which is set to create the ninth-largest bank in the U.S. with $288 billion in assets, aims to strengthen Fifth Third’s presence in fast-growing markets like Texas.

The announcement follows a relatively smooth negotiation process that began with a phone call on September 18, 2025, between Fifth Third CEO Tim Spence and Comerica CEO Curt Farmer. Farmer had reached out to congratulate Spence on taking over a government contract, which sparked discussions about a potential acquisition.

Comerica’s board previously considered offers from another unidentified bank, referred to as Financial Institution A, but ultimately decided that Fifth Third was the ideal merger partner. The board noted that Fifth Third’s proposal would yield a higher valuation than previous alternatives.

According to the filing from Wednesday, Comerica’s board had met just two business days after Farmer’s initial call, quickly expressing a preference for Fifth Third as a merger partner. The official agreement was executed on October 5.

Farmer will transition to a vice chair position at Fifth Third upon the deal’s completion, with an annual compensation package of $8.75 million. He will also receive $10 million in cash and $10.63 million in deferred compensation as part of his new role.

Despite Comerica’s recent struggles, including losing a significant contract managing the Direct Express program, the merger is seen as a strategic move for both banks. Fifth Third plans to cut 35% of Comerica’s expenses while aiming for a 9% increase in earnings by 2027.

The deal is still pending regulatory approval and is expected to close in the first quarter of 2026. If successful, this merger could significantly reshape the regional banking landscape.