Core Viewpoint - HoldCo Asset Management is advocating for Comerica shareholders to reject the proposed sale to Fifth Third Bancorp, emphasizing the need for a higher price or a better alternative transaction [2] Company Summary - HoldCo Asset Management holds a 1.6% stake in Comerica, indicating a significant interest in the company's strategic decisions [2]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores serve as complementary indicators to the Zacks Rank, helping investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated from A to F based on value, growth, and momentum characteristics, with higher scores indicating a better chance of outperforming the market [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] Value Score - The Value Style Score identifies stocks that are undervalued based on financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow, appealing to value investors [3] Growth Score - The Growth Style Score assesses a company's financial health and future growth potential by analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Style Score focuses on stocks with upward or downward price trends, utilizing recent price changes and earnings estimate revisions to identify favorable buying opportunities [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator that highlights stocks with attractive value, strong growth forecasts, and promising momentum [6] Zacks Rank Integration - The Zacks Rank uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.81% since 1988, significantly outperforming the S&P 500 [7] - Investors are encouraged to consider stocks with a Zacks Rank of 1 or 2 alongside Style Scores of A or B for optimal investment success [9] Stock Highlight: Fifth Third Bancorp - Fifth Third Bancorp, with assets of $212.9 billion as of September 30, 2025, operates 1,102 banking centers across 11 states [11] - The company holds a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating solid performance potential [11] - It has a Value Style Score of B, supported by a forward P/E ratio of 13.64, making it attractive to value investors [12] - Recent upward revisions in earnings estimates by seven analysts have increased the Zacks Consensus Estimate for fiscal 2025 by $0.05 to $3.53 per share, with an average earnings surprise of +4.5% [12]

Core Viewpoint - Activist investor HoldCo Asset Management is urging Comerica shareholders to reject the proposed acquisition by Fifth Third, claiming that the deal lacks a competitive process and that Fifth Third has room to improve its bid of $10.9 billion [1][2][3]. Group 1: Acquisition Details - HoldCo argues that voting down the deal does not terminate the merger, as Fifth Third is contractually obligated to attempt to renegotiate and resubmit the offer [2]. - The investor believes that Fifth Third's initial offer was lower than expected and that there is potential for a higher bid [2]. - HoldCo suggests that another potential suitor, identified as "Institution A" (believed to be Regions), remains interested in acquiring Comerica [2]. Group 2: Shareholder Influence and Legal Actions - HoldCo has been actively campaigning for influence over Comerica, previously alleging insufficient oversight by the bank's board regarding CEO interactions with Fifth Third [3]. - The firm criticized the board for not engaging with other potential bidders, suggesting that this lack of engagement could have led to higher offers [4]. - A shareholder vote on the acquisition is scheduled for January 6, with a court hearing on HoldCo's lawsuit against both banks set for January 2 [4]. Group 3: Market Reactions and Statements - Fifth Third's CEO, Tim Spence, expressed confidence regarding the shareholder vote, indicating that feedback from Comerica shareholders has been positive [6]. - Spence downplayed concerns about the lawsuit, suggesting that the market's reaction to the deal indicates a smooth voting process ahead [6].

Core Viewpoint - Activist investor HoldCo Asset Management plans to vote against Comerica's proposed sale to Fifth Third Bancorp, believing that Comerica could secure a better offer elsewhere [1][9]. Group 1: Activist Investor's Position - HoldCo Asset Management has launched activist campaigns against Comerica and other banks, asserting that there is "significant upside and limited downside" in opposing the transaction [2]. - The firm criticizes the negotiation process as "unacceptable" and has initiated a lawsuit against Comerica and Fifth Third in Delaware [3]. - HoldCo holds approximately $200 million in Comerica stock, representing about 1.8% of the outstanding shares [4]. Group 2: Transaction Details - The proposed sale is valued at nearly $11 billion, marking it as the largest bank deal announced in 2025 [5]. - The negotiation timeline of 17 days is noted as the fastest among major acquisitions [5]. - Fifth Third's CEO Tim Spence expressed confidence in the deal's approval and highlighted potential revenue opportunities of $500 million over the next three to five years [7][8]. Group 3: Legal and Regulatory Context - Shareholder votes for both Comerica and Fifth Third are scheduled for January 6, with ongoing legal proceedings that may influence the outcome [12]. - A Delaware judge will hold a hearing on January 2 to address HoldCo's claims regarding inadequate disclosures about the deal [14]. - The deal could close as early as February 2, depending on the outcome of the shareholder votes and legal proceedings [16]. Group 4: Market Reactions and Opinions - Analysts from TD Securities have expressed disagreement with HoldCo's assertion that Comerica could find a better offer, suggesting that the deal is favorable for both banks [16]. - An anonymous group, the Comerica 175 Coalition, has also opposed the deal, raising concerns about the negotiation process and requesting a public hearing [17].

Core Insights - Zacks Premium offers various tools to enhance stock market investment confidence and knowledge [1] - The Zacks Style Scores are complementary indicators that help investors select stocks likely to outperform the market in the short term [3] Zacks Style Scores Overview - Stocks are rated from A to F based on value, growth, and momentum characteristics, with A being the highest score [4] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [4][5][6][7] Value Score - Focuses on identifying undervalued stocks using financial ratios like P/E, PEG, and Price/Sales [4] Growth Score - Analyzes projected and historical earnings, sales, and cash flow to find stocks with sustainable growth potential [5] Momentum Score - Targets stocks with upward or downward price trends, utilizing recent price changes and earnings estimate revisions [6] VGM Score - Combines all three Style Scores to provide a comprehensive rating based on value, growth, and momentum [7] Zacks Rank Integration - The Zacks Rank uses earnings estimate revisions to help investors build successful portfolios, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.81% since 1988 [8] - Stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B are recommended for higher return potential [10] Stock Highlight: Fifth Third Bancorp (FITB) - As of September 30, 2025, Fifth Third Bancorp has assets of $212.9 billion and operates 1,102 banking centers across 11 states [12] - Currently rated 3 (Hold) with a VGM Score of A, FITB has a Momentum Style Score of A and has seen a 14% increase in shares over the past four weeks [12][13] - Recent earnings estimates for fiscal 2025 have been revised upward, with the Zacks Consensus Estimate increasing by $0.05 to $3.53 per share [13]

Core Insights - Fifth Third Bancorp (NASDAQ:FITB) is recognized as one of the best low-priced dividend stocks to buy according to analysts [1] - Piper Sandler raised its price target for Fifth Third Bancorp to $50 from $48, maintaining an Overweight rating, following the bank's presentation ahead of an upcoming industry conference [2] - The bank is acquiring Comerica, which will position it as the ninth-largest bank in the U.S. with approximately $288 billion in assets [4] Financial Performance - For Q4, Fifth Third's management slightly lowered fee guidance but improved its expense outlook, indicating a potential shift of some capital markets deals into early Q1 [2] Strategic Partnerships - Fifth Third announced a partnership with Brex to provide commercial cards and expense management tools for business clients, utilizing Brex's embedded payments platform [3]

Core Insights - Fifth Third Bancorp is confident that its nearly $11 billion acquisition of Comerica will close on schedule despite a lawsuit from activist investor HoldCo Asset Management challenging the deal [1][6][9] - The merger is expected to generate $850 million in savings primarily through personnel cuts, with 70% to 90% of Comerica's non-frontline employees facing layoffs [3][4][12] Regulatory and Approval Process - The banks anticipate receiving regulatory approval "around the new year" and plan to close the transaction in the first quarter of the following year, with a shareholder vote scheduled for January 6 [2][6] - The merger requires approval from the Office of the Comptroller of the Currency, the Federal Reserve Board, and the Texas Department of Banking [2] Financial Implications - The deal is projected to create a combined company with assets totaling $288 billion [9] - Fifth Third expects to realize expense synergies by 2027, with 70% to 80% of the $850 million savings coming from personnel reductions [4][12] Job Impact and Organizational Changes - Significant layoffs are expected, particularly in non-customer-facing roles, with the first round of layoffs scheduled for January [4][5] - Fifth Third has paused recruitment for open roles to retain positions for new employees post-merger [5] Strategic Benefits - The acquisition is expected to provide Fifth Third with $500 million in revenue opportunities over the next three to five years and enhance its presence in Texas [12] - The merger is seen as a way to improve Comerica's access to low-cost funding, which has been a longstanding issue for the bank [12] Legal Challenges - The lawsuit from HoldCo Asset Management alleges a flawed negotiation process, and the judge has ordered Comerica to provide additional information regarding the deal [6][7][11] - An anonymous group, the Comerica 175 Coalition, has requested the Federal Reserve to extend the public comment period and hold a public hearing on the merger [10][11] Future Plans - Fifth Third plans to convert Comerica's branches and systems in early Q4 of the following year [6] - The bank aims to handle the integration sensitively, drawing from its experience with previous acquisitions [13]

CINCINNATI--(BUSINESS WIRE)--Fifth Third Bank, National Association (Nasdaq: FITB) today announced it will decrease its prime lending rate to 6.75%, effective immediately. The rate was last changed on October 29, 2025, when Fifth Third decreased its prime lending rate from 7.25% to 7.00%. About Fifth Third Fifth Third is a bank that's as long on innovation as it is on history. Since 1858, we've been helping individuals, families, businesses and communities grow through smart financial services. ...

Group 1 - Fifth Third Bancorp (FITB) has entered into a definitive agreement to acquire Mechanics Bancorp's subsidiary, Mechanics Bank's Fannie Mae Delegated Underwriting and Servicing (DUS) business line, which includes a servicing portfolio with an unpaid principal balance of approximately $1.8 billion [1][8] - The DUS platform allows approved lenders to independently underwrite, close, and service multifamily loans while accessing a range of Fannie Mae-backed products [2] - The transaction is expected to close in the first quarter of 2026, subject to customary conditions and required third-party approvals, including Fannie Mae's approval of FITB as an authorized DUS lender [3] Group 2 - The acquisition is aimed at enhancing FITB's leadership in commercial real estate finance by expanding its multifamily lending capabilities, the largest segment of its commercial real estate portfolio [4] - Upon closing, FITB will gain direct access to Fannie Mae's multifamily lending platform and a well-established servicing operation, strengthening its ability to provide competitive financing solutions in the multifamily housing market [5] Group 3 - Over the past six months, shares of FITB have gained 15.4%, compared to the industry's growth of 19.4% [6]

PresentationHere to tell us more about the path ahead is Chairman and CEO, Tim Spence. Tim is going to walk us through some slides, and then we will have a Q&A session.Right. Kicking off the second day, we are pleased to have Fifth Third joining us once again. Fifth Third has continued to execute on its strategy, including building out its Southeast footprint, growing fees faster than the balance sheet, maintaining excellent cost control. More recently, it announced its intention to by Comerica Bank, just i ...