Fifth Third Completes Comerica Acquisition, Sets September Integration Date
DETROIT – Fifth Third Bancorp has formally closed its acquisition of Comerica Bank, a $12.3 billion all-stock deal that consolidates two historic Midwest financial institutions and creates the ninth-largest bank in the United States. The long-anticipated merger, first announced last October and approved by regulators and shareholders last month, officially took effect on Monday.
The integration process for customers will begin in earnest on September 8, the day after Labor Day, when Comerica's systems are converted to Fifth Third's platforms. In a move aimed at minimizing disruption, Fifth Third CEO Tim Spence confirmed that account numbers for "the vast majority" of Comerica customers will remain unchanged. "We've structured this transition with customer continuity as the priority," Spence stated in an interview. "Our track record in past integrations gives us confidence."
The merger significantly alters Michigan's banking footprint. While 76 branches across the state—55 of them Comerica locations—are slated for closure due to proximity, the combined entity will operate approximately 230 branches in Michigan. Spence framed this as a net increase in access, with former Comerica customers gaining access to about 60% more branches and Fifth Third customers to 40% more.
The human impact of the consolidation includes layoffs in areas with "a concentration of employees," though Spence declined to specify numbers. He struck an optimistic note for the long term, suggesting total employment in metro Detroit could eventually exceed the pre-merger combined figure. "The quality of talent in Michigan is exceptional," he noted, signaling a commitment to the region despite Comerica's headquarters move to Dallas in 2007.
Beyond banking halls, the deal touches a local landmark: Comerica Park, home of the Detroit Tigers. The stadium will retain its name through the 2026 baseball season, with a rebranding to follow in the off-season. "We don't want to be disruptive to the fan experience," Spence said.
The transaction, initially valued at $10.9 billion, swelled to $12.3 billion as share prices for both banks rose—a market endorsement, according to Spence. "The reaction suggests confidence in this merger's ability to drive profitability and long-term growth," he observed.
Reaction & Analysis:
"As a small business owner who's banked with Comerica for 15 years, I'm cautiously optimistic," said Michael Chen, a restaurateur from Ann Arbor. "The promise of more branches is good, but I'm really waiting to see if their small business lending terms remain competitive."
David Petrovski, a financial analyst at Great Lakes Wealth Management, offered a broader perspective: "This is a textbook defensive move in a consolidating industry. The scale achieved here improves efficiency and competitive positioning against national giants. The key will be retaining customer trust during the technology conversion—that's where many mergers stumble."
A more critical view came from Linda Marcus, a former Comerica employee and union advocate. "They talk about 'right-sizing' and 'operational capacity,' but that's corporate-speak for cutting jobs and shuttering community branches," she said sharply. "This deal was made for shareholders, not for tellers, small depositors, or Detroit. We're watching those layoff numbers closely."
Sarah Lim, a professor of finance at the University of Michigan, highlighted the historical significance: "Comerica's roots as the Detroit Savings Fund Institute in 1849 mean this isn't just a business transaction; it's the end of an era for Michigan's financial identity. The consolidation power now clearly sits outside the state, in Cincinnati."
This report includes background from Detroit Free Press coverage. For original reporting, contact JC Reindl at [email protected].