In this articleFITBCMA your favorite stocksCREATE FREE ACCOUNTwatch now6:3606:36Fifth Third CEO Tim Spence: We will be able to scale Comerica's middle market platform with dealSquawk BoxFifth Third Bancorp said Monday it will acquire fellow regional bank Comerica for $10.9 billion in an all-stock deal that will create one of the largest U.S.
banks by assets.When the deal closes, it will create the ninth-largest U.S. bank — with roughly $288 billion in assets.
The transaction is expected to finalize in the first quarter of 2026."The things that have defined Fifth Third over the course of the past 10 years have been this focus on stability, fitability and our ability to drive organic growth," Fifth Third CEO Tim Spence told CNBC's "Squawk Box" in an interview Monday.
"What's defined Comerica is an incredible middle-market commercial banking platform, and the access that Comerica has to high growth Texas and large economies California."Spence said the bank intends to build 150 branches in Texas and "move into a top five position in Dallas, Houston and Austin." "In an environment where merger apvals are coming faster, it builds our confidence," he said.
"Regulators believed we had the capacity to run a much larger bank." Comerica s rallied 15% in early trading ing the announcement. Fifth Third traded slightly lower.
Stock Chart IconStock chart iconCMA and FITB 5-day chart"Joining with Fifth Third – with its strengths in retail, payments and digital – allows us to build on our leading commercial franchise and further serve our customers with enhanced capabilities across more ," Comerica Chief Executive Curt Farmer wrote in a statement.The SPDR S&P Regional Banking ETF (KRE) jumped 1% in premarket trading on expectations this deal will be the start of many more in the reginal banking space as the Trump administration and Republicans ease regulations and takeover scrutiny.— CNBC's Luke Fountain contributed to this report.