Fifth Third Bancorp (NASDAQ:FITB) and Comerica Incorporated (NYSE:CMA) cleared their final major hurdle Wednesday as the Federal Reserve approved their $10.9 billion all-stock merger.
The deal, which marks the most significant U.S. banking consolidation in recent years, is set to close on February 1, 2026, creating a "super-regional" powerhouse with $290 billion in assets.
The combination catapults the Cincinnati-based Fifth Third into the ninth spot among U.S. commercial banks, positioning it squarely between the "Big Four" national giants and smaller regional players.
Strategically, the merger gives Fifth Third an immediate, massive footprint in the nation's most lucrative growth corridors.
The new entity will operate in 17 of the 20 fastest-growing large markets in the U.S., with a significant presence across the Midwest, Southeast, Texas, and California.
The merger arrives as regional banks face mounting pressure to scale up to afford rising technology and compliance costs.
Fifth Third expects the deal to be immediately accretive to earnings, projecting more than $500 million in annual revenue synergies by 2027.
While the banks plan to close approximately 80 overlapping branches—primarily in Michigan—management emphasized that the deal is focused on expansion into the "Sun Belt," with a goal of having over half of its branches located in the Southeast and West by 2030.
Comerica customers will continue to see their local branding through most of 2026 as integration teams work toward a full system conversion later this year.