Cincinnati-based Fifth Third Bank has unveiled an ambitious nationwide expansion strategy following its agreement to acquire Dallas-based Comerica Bank in an $11 billion transaction. The deal, announced on October 6, will create a financial institution with nearly $300 billion in assets and significantly reshape its presence in key growth markets across the United States.
The merger is expected to close in early 2026 and will see Fifth Third integrate Comerica's operations under its own brand. The plan includes adding hundreds of new branches, particularly in Texas, and establishing a new foothold in California, signaling a strategic push into high-growth regions.
Key Takeaways
- Fifth Third Bank will acquire Comerica Bank in an $11 billion deal, creating a combined entity with nearly $300 billion in assets.
- The bank plans to add 150 new branches in Texas, augmenting Comerica's existing 108 locations in the state.
- The acquisition gives Fifth Third a significant presence in California for the first time, with 85 branches and $15 billion in deposits.
- The merger strengthens Fifth Third's Midwest operations, creating what its CEO calls a "fortress position" in states like Michigan.
- The combined bank will become a Category 3 financial institution, subject to increased federal regulatory oversight.
A Strategic Reshaping of the Banking Landscape
The acquisition represents more than just an increase in size for Fifth Third. During a recent earnings call, CEO Tim Spence emphasized that the move is a calculated step to achieve specific strategic goals. He framed the merger as a way to build a company that is "better, not just bigger."
The transaction will combine two major regional banks, creating a more powerful player in the U.S. financial sector. With the addition of Comerica's assets, Fifth Third will cross the $250 billion threshold, classifying it as a Category 3 bank. This designation brings heightened regulatory requirements, a change Fifth Third's CFO, Bryan Preston, stated the bank has been preparing for since last year.
"[Mergers and acquisitions] is not a strategy unto itself, but rather a means to achieve stated strategic objectives," Spence explained. "The outcome must be a company that is better, not just bigger."
Targeted Growth in Key US Markets
A central component of Fifth Third's post-merger strategy is a significant expansion of its physical branch network, focusing on some of the country's fastest-growing metropolitan areas.
Major Investment in Texas
The most significant expansion is planned for Texas, where Fifth Third intends to build 150 new branches. This move will dramatically increase its presence in the Lone Star State, building upon Comerica's existing network of 108 branches, including 51 in the Dallas-Fort Worth area.
This aggressive build-out is part of a broader plan to add over 200 branches nationwide by 2028. The bank has already been active, opening 13 branches in the third quarter of 2025 alone.
Expanding the Southern Footprint
The Texas expansion complements Fifth Third's recent heavy investment in the Southeast. The bank currently operates nearly 350 branches across Florida, Georgia, the Carolinas, and other southern states. The addition of a strong Texas network solidifies its position as a major player in the southern U.S.
Strengthening the Midwest and Entering California
The deal also creates a dominant force in the Midwest. Fifth Third, founded in Cincinnati, already has a large presence in Ohio, Michigan, Illinois, and Indiana. By absorbing Comerica's 144 branches in Michigan, where Comerica was originally founded, Spence said the bank will establish a "fortress position in the Midwest."
Perhaps most strategically, the acquisition provides Fifth Third with an immediate and substantial entry into California. While Fifth Third currently has no branches in the state, Comerica operates 85 branches with $15 billion in deposits. Spence outlined a "business-focused strategy" for California, noting an opportunity to connect with former customers of Silicon Valley Bank.
Integrating Business Strengths and Customer Services
Beyond geographic expansion, the merger is designed to combine the distinct business banking capabilities of both institutions. Spence highlighted Comerica's strengths in specialized sectors like environmental services, technology, and life sciences.
A Boost to Middle Market Lending
A key asset Fifth Third will gain is what Spence called Comerica's "crown jewel" middle market franchise. This division serves businesses that are too large for small business loans but not large enough for corporate banking, a segment where Fifth Third aims to accelerate growth.
The deal also brings back a business line Fifth Third previously exited: automotive dealer services. "We have always liked it," Spence remarked. "We just didn’t have the scale to be able to support the platform." With Comerica's established platform, the service will be revived under the new, larger entity.
Focus on a Smooth Customer Transition
For existing customers, Fifth Third leadership stressed a commitment to a seamless transition. The bank will take ownership of Comerica's bank identification numbers (BINs), which will allow many customers to keep their existing debit and credit card numbers, avoiding a common merger-related inconvenience.
Spence acknowledged the immense detail required for mapping accounts, communicating changes, and ensuring adequate staffing in branches and call centers to handle customer inquiries during the conversion process.
The overall sentiment from leadership at both banks has been positive. Spence noted that employee and community feedback has been encouraging, suggesting a smooth integration ahead. "When the No. 1 question that we’re getting is what the name of the Detroit Tigers’ stadium is going to be... it’s a pretty good sign," he said, referencing the current Comerica Park.
